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.
Latest News
“Let’s move forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails” -PM
Prime Minister Dr Harini Amarasuriya in her May Day message called upon the working people in Sri Lanka to move forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails.
The full text of the PM’s message:
The history of the Sri Lankan labour movement is a remarkable journey, shaped over decades by the blood, sweat, and sacrifices made in the pursuit of rights, justice, and dignity.
Beginning with the printers’ strike of 1893, the working people of this country emerged as an organised force. Through the trade union movement led by A. E. Goonesinha and the emergence of the Lanka Sama Samaja Party, the voice of labour gained political strength. The Railway Workers’ Strike of 1923 and the public service strike of 1947 reaffirmed that the true ’driving force’ behind the country’s economic and social transformation was its working people. I respectfully acknowledge the invaluable contributions of workers in the plantation sector, ports, railways, and across both the public and private sectors, whose dedication laid the foundation for many of the labour rights we benefit from today.
As we commemorate International Workers’ Day with dignity once again, we pay tribute to all working people across the world, including the heroic workers who sacrificed their lives in the struggle for an eight-hour workday in Chicago in 1886. This year’s May Day holds special significance as it is being celebrated under a government built through the power of the people, in honour of the entire working community of Sri Lanka.
Granting due respect to labour and safeguarding the rights of all working people are core policy commitments of our government. Accordingly, we remain dedicated to creating a fair and safe working environment by expanding existing services and implementing new programmes aimed at improving the living standards of working people.
Ensuring fair and equal access for all citizens is a fundamental objective of the government. Following that, it is our responsibility to create an environment in which everyone can lead a dignified professional life. Establishing a national social protection system that recognises unpaid labour and guarantees social security for unpaid labours is among the foremost priorities of our government.
On this May Day, we must reaffirm the importance of moving forward together in unity to build a country where all labour is valued, rights are protected, and equality prevails. With the strength and dedication of all working people, may we soon achieve the vision we all share: “A Thriving Nation – A Beautiful Life
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Heat Index at Caution Level at some places in the Northern, North-central, Eastern, Sabaragamuwa and North-western provinces and in Monaragala district during the day time
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 30 April 2026, valid for 01 May 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, Eastern, Sabaragamuwa, and North-western provinces and in Monaragala district during the day time.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
News
USD 2.5 mn fraud probe: Interdicted MoF official found dead at home
An Assistant Director of the External Resources Department (ERD) of the Ministry of Finance, interdicted pending an investigation into the diversion of US$2.5 million in Treasury funds to a rogue account was found dead at his residence in Kuliyapitiya.
The deceased has been identified as Ranga Nishantha, 50.
Police said the officer had been found in the garden of his house and they believed that the officila had committed suicide. However, investigators have not ruled out other possibilities, and inquiries are continuing.
The official was interdicted along with three other senior Finance Ministry officials over a cyber-enabled financial fraud.
Those interdicted include a Director and an Assistant Director from the ERD, as well as a Director and an Additional Director General from the Public Debt Management Office (PDMO).
Police sources said that the CID had on two occasions asked Nishantha to make a statement in connection with the ongoing investigation, but he had failed to comply.
Police said the CID probe into the alleged cyber fraud is continuing, with investigators examining the circumstances surrounding the diversion of funds through compromised communication channels.Kuliyapitiya Police said further investigations were underway to establish the exact cause of death.
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