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“Our ultimate goal is to restore national sovereignty through economic stability and self-reliance” -President

Published

1 year ago

2025/06/16

Priyan

President Anura Kumara Disanayake, delivering the keynote address at the international conference “Sri Lanka’s Road to Recovery: Debt and Governance” in Colombo today (16), declared that by 2028 Sri Lanka will have laid the foundation for a stable and self-reliant economy, one capable of independently meeting its external debt obligations. Emphasizing that true sovereignty cannot exist amidst economic collapse, he asserted, “Our ultimate goal is to restore national sovereignty through economic stability and self-reliance.” He urged public officials and citizens alike to contribute to this national endeavour, stressing that the ongoing reform process demands a collective and sustained effort.

The conference, a landmark event jointly hosted by the Ministry of Finance, the Central Bank of Sri Lanka and the International Monetary Fund (IMF), drew global attention as it examined the country’s recovery from economic crisis, the progress of debt restructuring and future challenges under the IMF’s Extended Fund Facility (EFF) programme.

The President acknowledged that while a degree of macroeconomic stability has been restored, Sri Lanka must not be lulled into complacency. “Surface-level stability is not enough,” he stated. “We must deepen this stability through structural reforms that reshape the foundations of our economy.” He also noted several achievements of the current administration within a relatively short timeframe, expressing confidence in continuing this trajectory towards lasting political, economic and social stability.

This conference was held to reflect on Sri Lanka’s experiences, lessons learned and progress made during the debt restructuring process, as well as to discuss the progress and upcoming challenges related to the Extended Fund Facility programme with the International Monetary Fund.

Central Bank Governor Dr. Nandalal Weerasinghe echoed these sentiments, crediting the IMF and international partners for their support in Sri Lanka’s turnaround from a historic crisis that culminated in a sovereign default in 2022. Recalling the severity of the crisis, marked by hyperinflation, shortages and institutional erosion, Dr. Weerasinghe attributed the collapse to years of fiscal mismanagement and unchecked vulnerabilities.

“Stabilization was just the first step,” he noted. “The real test lies in sustaining growth through structural change.”

He highlighted the progress made under the EFF programme, including: Taming inflation – now back to single digits; Rebuilding external balances – including rare current account surpluses and reserve growth; Improving fiscal discipline – with narrowing deficits and emerging primary surpluses.

Dr. Weerasinghe further underlined the importance of governance reforms, pointing to new legislation such as the Central Bank Act, the Public Financial Management Act and the Anti-Corruption Act as pillars of long-term institutional credibility.

Urging stakeholders to maintain policy consistency, empower the private sector and protect the vulnerable, he emphasized: “Sri Lanka’s transformation must be domestically driven, with strong institutions and united public commitment.”

Delivering a pivotal message, IMF First Deputy Managing Director Dr. Gita Gopinath commended Sri Lanka’s hard-won gains but reminded attendees of the cost borne by the people, particularly the most vulnerable.

“The key lesson from this crisis is that it must never happen again,” she said, stressing the need for continued reforms targeting structural weaknesses such as unsustainable subsidies and inefficient pricing mechanisms. Though socially painful, she insisted such changes are essential for resilience.

She also cautioned against “reform fatigue,” highlighting that half of Sri Lanka’s 16 past IMF programmes faltered due to reversals. “This time must be different,” Dr. Gopinath urged. “Success should be measured not just by numbers but by whether this becomes Sri Lanka’s last IMF programme.” She called for inclusive governance, civil society engagement and equitable policymaking that reaches beyond Colombo, reaffirming the IMF’s commitment while urging national ownership of the recovery path.

Following is the full speech delivered by President Anura Kumara Disanayake;

“A few years ago, our country faced the consequences of the most severe economic crisis in its history. At that juncture, we were confronted with two possible paths: either to continue along the same failed and destructive route, or to choose a new path that would enable us to rebuild and uplift our nation.

Today, we can proudly state that the path we chose has brought significant victories to our country. That success required responsibility and commitment from the political leadership. Moreover, critical responsibilities were borne by state institutions such as the Central Bank and the Ministry of Finance. However, the greatest contribution came from the public, who bore the brunt of these reforms. They made immense sacrifices and endured hardships to help rescue the nation from this crisis.

At present, our country has achieved a level of economic stability. We have reached the stage where debt restructuring is nearing completion and for a notable period, we have been able to maintain stability in the value of the dollar. Furthermore, we have been able to generate expected state revenue and build up foreign reserves. These indicators reflect strong macroeconomic stability. Nevertheless, the deep wounds of the crisis have not yet healed. We must understand that the crisis is not yet resolved in its entirety.

Therefore, while surface-level stability has been established, it is imperative to further solidify this stability and to elevate the economy to a higher level. This requires the implementation of new reforms and transformations within the economic system. I would like to draw attention to a few critical factors in this regard.

To ensure economic stability and recovery, we need a strong public service. However, the expenditure we currently incur to maintain the public service is excessive and unsustainable. Our goal must be to provide an efficient public service at minimal cost to the citizen. We have already decided that certain state institutions should be closed.

These institutions were established in response to socio-economic needs of a bygone era, which are no longer relevant. Some institutions are now obsolete and therefore, must be restructured or dissolved.

Additionally, we have multiple institutions performing overlapping functions. These must be consolidated. Some state institutions also require a redefinition of their objectives and goals.

Hence, we are committed to implementing a robust transformation of the state apparatus. For this to be successful, inefficiency and more importantly, corruption and bribery must be eradicated from the public sector.

Recent news reports highlight the depth of the current crisis: the Inspector General of Police is in hiding; the Commissioner General of Prisons has been imprisoned; officers from the Department of Motor Traffic and the Department of Immigration and Emigration have been arrested. This raises serious concerns about the state of our institutions. Inefficiency, bribery and corruption significantly contributed to this crisis. Corruption is not merely about immediate transactions, it resulted in vital projects being neglected and unnecessary ones being implemented, which continue to burden us today.

Thus, to overcome this crisis, enhancing institutional efficiency and decisively combating corruption are essential. We are committed, as a government, to this cause.

We believe that the state should retain a certain degree of involvement in sectors that are sensitive to the economy. Sri Lanka’s energy and financial markets are relatively small, which poses the risk of monopolies forming. To counter this, the state must maintain a presence in key sectors.

However, such state institutions must not become burdens on the public. For instance, entities like the Ceylon Electricity Board and the Ceylon Petroleum Corporation are closely tied to both the economy and people’s daily lives. While we believe the government must retain oversight over these entities, they must not impose excessive costs on the public.

Prices must reflect actual production costs. The price of a unit of electricity must correspond to the cost of its generation. We are committed to upholding this principle.

At the same time, we are prepared to strengthen the necessary mechanisms to reduce production costs. Services should be provided to citizens at a cost equivalent to their actual expense.

However, we are aware that there are low-income groups who cannot afford even these costs. While we implement economic reforms and await the benefits to reach the people, we cannot simply ask them to endure the hardship in silence. The state must provide relief to these groups during this transitional period. This is the responsibility of a just government.

In every society, there are segments of the population that are disconnected from economic activity, be they the elderly, the disabled, or individuals whose circumstances prevent them from participating in the economy. It is the duty of the state to protect such groups. Talking about economic development while abandoning these communities is futile. This is a question of humanity, justice and fairness.

We therefore support a policy of providing well-targeted assistance to vulnerable communities. This assistance is not to be politicised. We view it as a matter of social justice and social protection. Based on our past experiences, welfare programmes have often been politicised. But I assure you, we will never use social protection schemes for political gain.

On another note, while we have achieved stability in several sectors, there are others where progress must be expedited. Firstly, we must attract direct foreign investment (FDI). Looking back over the past several decades, we have failed to attract sufficient FDI due to the prevailing global and local economic conditions. This must change.

However, the challenge of attracting investment does not come from a place of economic strength, but from rebuilding after collapse. Our financial market lost credibility and we experienced a situation where people could not afford daily necessities. Foreign reserves hit rock bottom. We are now in the process of recovery.

Yet, is this recovery sufficient to attract investment? I believe we must offer certain incentives to investors. Given the current context, we must focus on creating a more attractive environment for investment, which may include offering strategic relief. We are in discussions with the International Monetary Fund in this regard.

In addition, we face the question: how do we revitalise our national economy and production? Many small and medium enterprises (SMEs) collapsed during the economic downturn. Over 90% of them failed not due to internal mismanagement, but due to the broader economic collapse. Therefore, we must provide targeted relief to help them recover.

Thirdly, while economic growth is important, economic expansion is equally critical. Rural communities have become marginalised and excluded from the mainstream economy. While urban economic indicators may appear positive, they do not reflect the realities of those left behind.

For economic growth to deliver real benefits to the people, economic expansion must be pursued. I believe we must launch initiatives to integrate citizens from remote areas into the economic system. Therefore, to maintain the current stability and to transition to a stronger state, we have a tremendous task ahead of us.

We must be deeply grateful for the support extended by the International Monetary Fund in implementing this programme, as well as for the patience and endurance shown by our citizens, especially if they felt unfairly affected during this process. As I have previously stated, it is our aim to make this the final programme undertaken with the IMF’s Extended Fund Facility. We are hopeful of achieving this goal. By the year 2028, we aspire to build a stable economy with sufficient growth to service our debt independently.

A state cannot maintain sovereignty where the economy has collapsed. A nation cannot retain independence when its economy is in ruin. Whether we like it or not, we have already lost a degree of our sovereignty and independence. Therefore, the ultimate outcome must be the restoration of our national sovereignty and self-reliance. This requires a strenuous and unwavering effort.

It is not a task we can abandon. There is a clear mission to accomplish, and in pursuing that, I expect the commitment of the political leadership, the responsibility of public officials and the cooperation of the people.”

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‘Time for Ukraine to get new president,’ says Trump after Zelensky condemns diesel deal

Published

12 hours ago

2026/10/11

Priyan

[file pic]

US President Donald Trump has said he thinks “it’s time for Ukraine to get a new president” as he responded to Volodymyr Zelensky’s criticism of the US diesel deal with Russia.

The Ukrainian president warned a new deal to release millions of tonnes of Russian diesel into the US would provide Moscow with money to continue its war against his nation, calling it a gift to Russian President Vladimir Putin.

Trump told reporters outside the White House on Saturday that Zelensky “wants to make problems for the world” by continuing to authorise attacks on Russian refineries.

“He’d better damn well stop,” Trump said, before suggesting Ukraine should “get a new leader who can make a deal”.

Global fuel supplies, including diesel, have been severely limited by the war against Iran launched by the US and Israel, which led to the effective closure of the Strait of Hormuz, through which roughly a fifth of the world’s oil products usually flows.

Russia – a major producer – and Ukraine have recently intensified their strikes on each other’s energy infrastructure and transport facilities, further straining energy markets.

“We said, ‘you can do whatever you want to Russia, don’t hit the refineries’, because that’s a world problem that’s caused,” Trump continued.

“He could have made many deals and for some reason, he never does.”

Putin’s envoy Kirill Dmitriev described Trump’s intervention as “iconic and historic”, saying that Ukraine “needs leadership actually focused on peace”.

The US president confirmed on Friday that an agreement had been reached with Moscow to suspend sanctions on Russian diesel exports until 7 April.

Zelensky reacted by saying it would allow Moscow to raise new funds to source new military equipment to continue the war.

He also accused Moscow of taking the deal “to mean they can keep fighting, to mean they keep dropping bombs on cities” following deadly new strikes on Zaporizhzhia.

The Ukrainian president spoke to several allies on Saturday to discuss the latest developments, calling for “real decisions to protect lives in Ukraine” and to protect European security.

A Downing Street spokesperson said UK Prime Minister Andy Burnham had spoken to Zelensky and offered his “complete solidarity”.

The pair had agreed Russia should acquiesce to “an immediate energy ceasefire” and end its attacks on shipping in the Black Sea, the spokesperson said, as “this would immediately release more energy and food supplies into the global market”.

News of the US-Russia diesel deal was also met with criticism by EU’s foreign affairs chief Kaja Kallas, who echoed Zelensky in saying that suspending sanctions “provides Moscow with more revenues to wage war”, adding: “This is not the time to ease pressure on Russia, and Europe won’t.”

She said European foreign ministers intended to approve the biggest set of sanctions on Russia since the start of its full-scale invasion on Monday.

The deal with Russia is the latest effort from Trump to lower fuel prices in the US ahead of the midterm elections, after months spent grappling with the political consequences of the Iran war.

That conflict, which began in February, has sent the cost of petrol and in particular diesel skyrocketing, which has soured his standing with the American public who have been stung by the higher pump prices and knock-on effects that led to across-the-board inflation.

The average price of diesel is currently $6.28 (£4.74) a gallon, according to the AAA – up from last month’s $5.94 average, and $3.68 last year.

Under the deal, Russia would release an initial 300,000 tonnes of diesel “to the American and global marketplace” followed by an additional 500,000 tonnes in November.

A further million would follow, Trump wrote on Truth Social, and then another 3m tonnes “within a short period of time” – but he noted that this delivery will be “based on the condition of their diesel refineries”.

In the past 10 months, Russia experienced two waves of severe fuel shortages across the country due to Ukrainian drones strikes on its oil refineries.

Diesel production in Russia dropped by an estimated 30%, according to the International Energy Agency.

Trump had already called for new elections in Ukraine last December, saying Ukrainian voters should have the choice to replace Zelensky.

Since the war broke out in 2022 Ukraine has been under martial law, meaning elections are suspended.

[BBC]

Latest News

Renshaw 190 lifts Australia to 390 before Hazlewood strikes

Published

12 hours ago

2026/10/11

Priyan

Matt Renshaw got out for 190 after tea [Cricinfo]

Matt Renshaw produced a herculean 190 and powered Australia to an unlikely first-innings total before Josh Hazelwood dismissed South Africa opener Ryan Rickelton for a duck late on day two of the first Test in Durban. Australia had their backs to the wall at 124 for 6 in familiar batting woes but Renshaw rescued the innings with his 397-ball marathon effort.

Renshaw fell short of what would have been a maiden double ton after being dismissed two balls into the final session, caught at slip off the bowling of offspinner Simon Harmer. His only other Test century was against Pakistan at the SCG in January 2017, when he made 184.

After 137.2 overs in the field, South Africa openers Rickelton and Aiden Markram faced a tough challenge under increasingly gloomy skies. A weary Rickelton did not fare well after edging Hazlewood to third slip in the second over, having attempted a lavish drive to a full delivery.

But Markram and new No. 3 David Bedingham were unruffled, and hit several attractive boundaries before bad light ended the day’s play just 8.4 overs into South Africa’s innings.

Having been on the back foot for much of the opening day, Australia were on top after day two as Renshaw produced the fourth highest score by an Australian in South Africa. Remarkably, he scored 174 of his runs with the last four batters, the most anyone has scored in a Test innings while batting with the tail since 2002.

Renshaw received strong support from the lower order, marked by an 86-run seventh-wicket partnership with Pat Cummins and a 134-run stand with Nathan Lyon, the second-most for the ninth wicket for Australia in their Test history.

Cummins and Lyon faced a combined 190 deliveries – that was 27 more than Australia’s top four batters – although batting became easier on a surface that on day one produced steep bounce and seam movement.

It has been a tough journey for Renshaw, who might have resurrected his Test career after providing a major tonic for Australia’s reshuffled batting order. He reached his century just before the lunch break with a boundary through the leg side, and raised his arms in delight and took off his helmet, showing off a beaming smile.

Highly disciplined but also showing a knack of going through the gears, Renshaw became the first Australia batter to face 300 balls in a Test innings since Usman Khawaja scored 232 against Sri Lanka in Galle in early 2025.

Renshaw has relished moving down to No. 5 after Nic Maddinson’s surprise selection as an opener, along with Cameron Green missing the match through injury. He had only filled the position four times previously – thrice during the 2023 tour of India, and once on the 2017 tour – with modest results, although has enjoyed success with Queensland there.

Renshaw had returned to Test cricket after three-and-a-half years as an opener against Bangladesh in August. While Maddinson’s selection has initially backfired, Renshaw looked at ease in the middle order, and equally untroubled against the seamers and spinners.

Having dominated much of the shortened first day, South Africa were left frustrated with their attack blunted by Renshaw. Seamers Wiaan Mulder, Marco Jansen and Anrich Nortje took nine wickets between them but struggled to consistently threaten on day two.

Spin duo Harmer and Keshav Maharaj claimed just one wicket from 48.2 overs, with Renshaw negating their influence, although the surface is expected to spin significantly later in the match. It was a disappointment for the sparse crowd in Durban, with the atmosphere rather subdued for Australia’s first Test series in South Africa since the 2018 sandpaper scandal.

Earlier on day two, Australia resumed their first innings on 187 for 6 after just 65.2 overs were bowled on a truncated opening day due to bad light. Renshaw and Cummins aimed to build on their unbeaten 63-run partnership from overnight. It did not take Renshaw long to reach his fourth Test half-century after edging Nortje through third slip and gully as he celebrated the milestone for the first time since March 2017.

Nortje, who played a starring role on day one after a three-and-a-half year exile from Test cricket, once again unfurled vicious short deliveries but occasionally tried to outfox Cummins by pitching up. A focused Cummins was unfazed, and pounced on a rare overpitched delivery with a beautiful square drive to the boundary. He had a fourth Test half-century in his sights – and the first since January 2024 – until, on 43, he edged a good-length delivery from Mulder to second slip.

Renshaw, meanwhile, showcased his much improved play against spin, reverse sweeping Maharaj with good effect to keep the scoreboard ticking over.

Much like Cummins, Mitchell Starc was intent on solid defence, and had a slice of luck when he edged Harmer through the hands of Markram at first slip as the ball flew to the boundary. South Africa had no hesitation in taking the second new ball, and Mulder capitalised when he clean bowled Starc with a cracker of a delivery that pitched on middle before crashing into the off stump.

But Renshaw kept South Africa at bay, and put the foot down in the back end of the elongated session. He hogged the strike after lunch as South Africa skipper Temba Bavuma deployed Maharaj and Harmer in tandem. The game went through a lull until the reintroduction of Nortje, who delivered a 143kph thunderbolt that whacked Renshaw on the grill of the helmet.

But Renshaw gave an immediate thumbs up and continued with his indefatigable effort after receiving medical attention. He reached 150 with a reverse sweep off Maharaj – and quite fittingly so, given his mastery of the stroke through the innings.

Lyon appeared set to bat through the entire second session before being trapped plumb lbw by a full delivery from Jansen, who was rewarded for a hostile spell before tea. The session was extended, but Hazlewood held firm with the bat before making an impact with the ball before stumps.

Scores:
South Africa 27 for 1 in 8.4 overs (Aiden Markram 15*, David Bedingham 12*; Josh Hazlewood 1-9) trail Australia 390 in 137.2 overs (Matt Renshaw 190, Pat Cummins 43; Marco Jansen 3-68, Wiaan Mulder 4-68, Anrich Nortje 2-88 ) by 363 runs

[Cricinfo]

Foreign News

Pope says death penalty ‘inadmissible’ as US plans to livestream execution

Published

12 hours ago

2026/10/11

Priyan

[file pic] Pope Leo XIV attends a weekly general audience at St Peter's basilica in The Vatican [Aljazeera]

Pope Leo XIV has declared that the death penalty is “inadmissible” while his home country, the United States, announces plans to livestream an execution by firing squad.

Marking World Day Against the Death Penalty on Saturday, the pope reiterated the Catholic Church’s teaching on capital punishment, writing on X that it was “inadmissible because it is an attack on the inviolability and dignity of the person”.

“The common good can be safeguarded and the requirements of justice can be met without recourse to capital punishment,” his post said.

“Effective systems of detention have been developed that protect citizens while at the same time do not completely deprive those who are guilty of the possibility of redemption,” added the leader of the Catholic Church.

The American Pope’s comments come days after US Secretary of Defense Pete Hegseth said on Thursday that the firing squad execution of Nidal Malik Hasan on December 3 will be livestreamed.

Hasan was convicted of killing 13 people and wounding 32 others in a shooting at the Fort Hood military base in 2009.

Pope Leo did not specifically refer to the planned execution, or last month’s botched execution attempt on Christa Pike, who survived two doses of the lethal injection in Tennessee.

But his post came hours after his top deputy, Cardinal Pietro Parolin, the Vatican secretary of state, told Vatican News that the plan to livestream Hasan’s execution was “unacceptable”.

It was Leo’s predecessor, Pope Francis, in 2018 who first amended official Catholic teaching to declare capital punishment “inadmissible” in all circumstances.

[Aljazeera]