News
Prof. Dunusinghe debunks govt.’s claims about stabilising economy
By Rathindra Kuruwita
Until Sri Lanka has access to international money markets, which will allow it to ensure there are no short-term dollar shortages, relaxing the restrictions on vehicle imports is out of the question, Professor in Economics at the Department of Economics at Colombo University, Dr. Priyanga Dunusinghe, said.
Even then, relaxing vehicle imports should be done in a slow and methodical manner, he said.
“A lot of people ask me whether I can give a date when this could be. However, giving a timeline is difficult because we have not yet managed to restructure our international debt. The government says this can be done in the middle of the year. Once the government manages that, we will have access to bilateral credit. After a while, we might be able to slowly relax restrictions on imports.”
Prof. Dunusinghe said people must not expect our economy to return to 2018 levels, soon after foreign debt is restructured.
He added that even if the government succeeds in foreign debt restructuring, it is improbable that the rupee will strengthen. It is likely that the rupee will hover around the current rates or be in a slightly depreciated state.
“We see increased economic activity, and with this, the demand for imports will rise. However, given that market mechanisms govern the exchange rate, I don’t see large fluctuations.”
Even with recent hikes, the tax revenue of the government is not adequate to cover the expenses. When the daily revenue is about 11 billion rupees, the daily expenditure is around 19 billion rupees, he said.
“The government needs to reduce its expenditure. It should also take steps to collect the taxes it can. The government says it has stabilised the economy, but many fear that it’s not a ‘stabilisation’ that can lead to growth in the medium term.”
Prof. Dunusinghe said Sri Lankans see Ministers still enjoying perks. They have not reduced their expenditure. There are also many issues with the procurement process.
Recently, Verite Research issued a report, and they said Sri Lanka’s procurement guidelines don’t allow for blacklisting contractors/suppliers involved in fraud and corruption, and the compliance gap is shown by the failure to maintan a blacklist for defaulting contractors.
“We are the only South Asian country that doesn’t blacklist contractors/suppliers involved in fraud and corruption. There are so many instances where companies provide low-quality goods to government agencies. We see so many substandard constructions. Things are increasingly getting worse. Companies make profit by selling a 100-rupee item at 250 to the government and make profit. How can the government reduce expenditures like this? If we make the procurement process transparent, a lot of waste can be reduced.”
Prof. Dunusinghe said corruption and bribery have to be stopped for the country to go forward. Government, as well as senior bureaucrats, have a significant role to play.
He added that Sri Lanka has a great potential for tourism. However, the country should be mindful that the industry seems to face extremely challenging situations once every three to four years.
“This is like a bubble that can burst. We should focus on tourism, but we must also focus on boosting exports. Remittances are also important, but overdependence on them becomes a curse. In recent years, we have become increasingly dependent on remittances and tourism, and we don’t focus on anything else. We don’t think about boosting exports. We send our youth and professionals abroad, hoping they will send a lot of money. This is how we plan on running our economy. Let me be clear: no country has developed from remittances.”
Prof. Dunusinghe said a strong export sector, based on correct Foreign Direct investment (FDI), is the path for development for Sri Lanka.
“Depending on tourism alone is also very risky. We need to diversify,” he said.
News
Patali alleges NPP conspiring to put off elections indefinitely
* Govt. lacks plan to meet IMF targets
By Shamindra Ferdinando
United Republican Front (URF) leader Patali Champika Ranawaka has alleged that the 22nd Amendment is aimed at enabling the National People’s Power (NPP) to perpetuate its rule without conducting elections.
The former Minister was addressing the media at the Flower Road Office of UNP leader Ranil Wickremesinghe on Tuesday (25). Alleging that the Pelawatte-based ‘red junta’ spearheaded the operation to enact the controversial 22nd Amendment, the ex-parliamentarian pointed out that neither President Anura Kumara Dissanayake nor Health and Media Minister Dr. Nalinda Jayathissa, who is also the Cabinet spokesman, never denied declarations made by various members of the NPP parliamentary group that elections wouldn’t be conducted for 10, 20 years.
The President and the Cabinet spokesman never clarified that such declarations were not the position of the government, Ranawaka said. The URF leader pointed out that some NPP/JVP members told those receiving appointments that they would also retire under the same administration.
Addressing the media after former External Affairs Minister Prof. G. L. Peiris, convenor of the Joint Opposition, said that the government recognised them as the real opposition. Referring to Dr. Jayathissa’s recent claim that they conspired at the residence of Prof. Peiris and challenged them to come on to the streets, ex-lawmaker Ranawaka thanked the Minister for the recognition at the expense of the Samagi Jana Balawegaya (SJB). The government accepted the challenge posed by them in spite of the main Opposition party, in Parliament, having 40 MPs, the URF Chief said, urging the government to reveal the identities of those who clandestinely led the ruling party.
The former MP said that the country was now aware of their conspiracies during the past six decades. Blaming the government for its inordinate delay in conducting the Provincial Council polls, and the failure to take tangible measures to do away with the executive presidency, as repeatedly promised in the run-up to the national elections in 2024, Ranawaka alleged that the government was busy conspiring to roll back the electoral map. He also alleged that President Dissanayake was leading the operation.
According to Ranawaka the government was keen to postpone elections indefinitely as its members feared to face the law under a different government.
Commenting on the economic situation, Ranawaka explained how under President Wickremesinghe tough measures were taken during the 2022 to 2024 period to stabilise the country with the backing of the International Monetary Fund (IMF). “However, the country cannot go on beyond 2027 under the current setup. In terms of the agreement with the IMF, the debt repayment was stopped. However, the country will have to start repayment in 2028,” the ex-MP said, pointing out the country’s reserves were down to USD 6.4 bn.
The ex-MP said the IMF expected Sri Lanka to maintain foreign reserves at USD 6.8 bn and to increase the reserves to USD 12 bn next year. In terms of the IMF’s recommendations, the foreign reserves have to be increased to USD 15 bn by 2028, Ranawaka said, recollecting how former President Ranil Wickremesinghe, at a recent book launch, explained the daunting challenges faced by the country on the economic front.
Ranawaka was referring to Wickremesinghe’s speech at the launch of former Minister Ranjith Siyambalapitiya’s book launch at the BMICH, where the former President warned of dire consequences if the government failed to adhere to the IMF formula.
The former Minister disputed the government’s much touted claim that corruption was dealt with. The person who caused an unprecedented gas crisis, in 2021, by promising to supply gas at a much lower price than what was paid by the then government at that time and ended up causing countrywide panic due to “accidental” blasts of domestic gas cylinders, received protection from this government.
The government conveniently refrained from initiating action against that person, Ranawaka said. Referring to the developments leading to President Gotabaya Rajapaksa’s government declaration of bankruptcy in April 2022, the ex-Minister claimed that the IMF, in a letter dated 7 March, 2022, alerted the Secretary to the President, the Finance Ministry and the Central Bank, of the impending economic collapse. The NPP government failed to take action against those responsible for creating the 2022 crisis, Ranawaka said.
News
August 15 Super Dvora tragedy: Search continues for missing officer’s body
Navy headquarters yesterday said it was continuing the search for Lt. Thilina Udayapriya, second-in-command of the Super Dvora Mark III Fast Attack Craft (FAC), which sank in the seas off Angulana, on 15 August, 2026. Of the 12-member crew, 11 were rescued but so far SLN efforts to locate the missing officer’s body had failed, sources said.
They said that the salvage operation of the sunken craft, taken delivery from Israel after the end of the war, is continuing amidst gruelling weather and rough sea conditions, and the sunken vessel is now off Bambalapitiya.
Sources said that the vessel collided with a sunken ship MV Thermopylae Sierra that sank in August 2012, during a monsoon storm. The ill-fated Super Dvora Mk III has gone over the ship wreck in spite of it being clearly demarcated in the nautical chart, aka hydrographic chart available to the ill-fated vessel’s crew. But authorities had failed to mark the site with a buoy to warn maritime traffic, in spite of public appeals. (SF)
News
Tripartite MoU to expand free cardiothoracic surgeries at KDU Hospital
The Ministry of Defence, Ministry of Health and Mass Media, and the General Sir John Kotelawala Defence University (KDU), have signed a tripartite Memorandum of Understanding (MoU) to facilitate the expansion of free cardiothoracic surgery services by utilising the facilities of the General Sir John Kotelawala Defence University (KDU) Teaching Hospital.
The Defence Secretary Air Vice Marshal Sampath Thuyacontha (Retd), Secretary to the Ministry of Health and Mass Media Dr Anil Jasinghe, and Vice Chancellor of General Sir John Kotelawala Defence University Rear Admiral H. G. U. Dhammika Kumara, signed the agreement on behalf of their respective institutions.
The Defence MInistry said that the initiative, implemented in accordance with a Cabinet proposal submitted by the Minister of Health and Mass Media Dr Nalinda Jayatissa would reduce congestion and address the lengthy waiting list for cardiothoracic surgeries at the National Hospital of Sri Lanka (NHSL).
The Ministry stated: “Under the arrangement, specialist doctors and clinical staff of the Cardiothoracic Unit of the National Hospital will conduct free heart and thoracic surgeries and provide specialised treatment for patients at the KDU Teaching Hospital. KDU will provide the necessary infrastructure, medical facilities and specialised equipment, while the Ministry of Health and Mass Media will provide the required medicines, medical supplies and specialised medical care.”
-
News6 days agoCountry’s first woman Surveyor General appointed
-
Business5 days agoSriLankan Airlines makes ShakthiSAT Mission possible for talented Sri Lankan student
-
Features6 days agoMedical education in Sri Lanka: Then and now
-
Latest News6 days agoImran Khan moved to private hospital amid deteriorating health
-
Latest News6 days agoGovernment has declared 21, 22 and 23 August 2026 as national days of mourning
-
Features4 days agoMy secondary schooling after Royal Primary
-
Latest News5 days agoTharanga edges out Chopra in 88m javelin battle
-
News6 days ago22A: Opp. demands all available SC judges hear petitions
