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
Landslide Early Warnings issued to the Districts of Colombo,Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura
The National Building Research Organisation [NBRO] has issued landslide early warnings to the Districts of Colombo, Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura effective from 1700 hrs today [24th May 2026] to 1700 hrs on Monday [25th May 2026].
Accordingly,
LEVEL II [AMBER] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Dehiowita, Deraniyagala, Ruwanwella and Yatiyanthota in the Kegalle district and Kuruwita, Ratnapura, Ayagama and Eheliyagoda in the Ratnapura district.
LEVEL I [YELLOW] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka and Padukka in the Colombo district, Attanagalla in the Gampaha district, Palindanuwara, Mathugama, Bulathsinhala, Agalawatta, Ingiriya and Horana in the Kalutara district, Bulathkohupitiya in the Kegalle district, Ambagamuwa in the Nuwara Eliya district and Kiriella, Pelmadulla, Nivithigala, Elapatha and Kalawana in the Ratnapura district.
News
PM concludes official visit to UK
Prime Minister Dr Harini Amarasuriya concluded a successful official visit to the United Kingdom from 18 to 22 May 2026. The visit was undertaken to participate in the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026 and to advance bilateral, academic, and community engagement.
The Prime Minister commenced her programme with academic engagements at the Institute of Development Studies (IDS), University of Sussex, where she addressed the 60th anniversary celebration. Addressing the gathering, the Prime Minister reflected on the relationship between politics, governance, and development, drawing from Sri Lanka’s recent political and economic experiences. She emphasized the challenges of balancing governance, economic recovery, social protection, and institutional reform while responding to public expectations and maintaining democratic accountability.
The Prime Minister subsequently delivered the 2026 Annual Lecture at the St Antony’s College, University of Oxford, organized by the Oxford School of Global and Area Studies (OSGA). Addressing the audience comprising students, academics, and researchers from across the University of Oxford, the Prime Minister reflected on the intersections of development, governance, and politics in Sri Lanka while discussing the broader realities faced by the country attempting to achieve meaningful social and economic reform. During her visit to Oxford, she also engaged with scholars and Sri Lankan fellows of the Chevening CRISP programme.
During the visit, Prime Minister Amarasuriya held bilateral discussions with Ms Yvette Cooper Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom. During the discussions, Prime Minister Amarasuriya conveyed Sri Lanka’s appreciation for the United Kingdom’s support following Cyclone Ditwah, including ongoing rebuilding and recovery assistance, and commended the UK’s continued efforts to facilitate increased bilateral trade and exports for Sri Lanka. She also briefed the UK side on Sri Lanka’s economic developments and policy priorities, reaffirming the Government’s commitment to human rights, reconciliation, and the country’s positive growth trajectory. Both sides exchanged views on global geopolitical developments, energy challenges, and regional connectivity, and reaffirmed their commitment to further strengthening bilateral cooperation in areas of mutual interest.
At a discussion with Ms Bridget Phillipson, UK Secretary of State for Education Prime Minister Amarasuriya emphasized the importance of sustaining meaningful institutional partnerships, enhancing quality assurance in higher education, and expanding opportunities for students and educators. Both sides reaffirmed the long-standing and historic cooperation between Sri Lanka and the United Kingdom in education and expressed interest in further deepening collaboration in student mobility, joint programmes, and research.
The Prime Minister also met with academic experts from the British Council at the High Commission in London to discuss strengthening cooperation in education. The discussions focused on strengthening cooperation in education, particularly in teacher training, English language programmes, education frameworks, and language acquisition skills. The meeting also addressed ways to improve quality assurance, expand research collaboration, and enhance learning opportunities for students and educators.
The Prime Minister attended the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026 from 21 to 22 May 2026. She met with Shirley Ayorkor Botchwey, Secretary-General of the Commonwealth of Nations, at the Commonwealth Secretariat, where discussions focused on strengthening cooperation within the Commonwealth framework, including climate change, climate finance, democratic governance, and women’s political participation. The Secretary-General reaffirmed the Commonwealth’s readiness to continue supporting Sri Lanka through technical assistance, capacity-building initiatives, and collaboration in areas including climate finance and electoral governance.
Prime Minister Amarasuriya visited the London Buddhist Vihara ahead of its upcoming centenary celebrations, where she met with the Most Venerable Bogoda Seelawimala Nayaka Thera, Chief Sangha Nayaka of Great Britain and Head of the London Buddhist Vihara and discussed the preparations for the celebrations and the Vihara’s longstanding contribution to the Sri Lankan community. She subsequently engaged with members of the Sri Lankan community at a separate community event.
Concluding her successful official visit to the United Kingdom, Prime Minister Dr. Harini Amarasuriya arrived in Sri Lanka on Satueday morning via Bandaranaike International Airport.
[Prime Minister’s Media Division]
News
Sri Lanka cricket finances ‘greater than feared’: interim chief
(AFP)Financial irregularities surrounding Sri Lankan cricket were far worse than feared, government-appointed administrators said Thursday, promising a full accounting and sweeping reforms.
“We have already ordered a forensic audit of the accounts,” Eran Wickramaratne, interim president of Sri Lanka Cricket (SLC), told his first news conference since taking office last month.
He said financial irregularities were “far greater than initially feared”.
He said the new SLC leadership — handpicked by the government of President Anura Kumara Dissanayake — would bring in sweeping reforms as concerns linger over international sanctions.
The current administration was appointed following the mass resignation of SLC’s elected officials last month — a move that raised fears of possible suspension by the International Cricket Council (ICC) over political interference.
The SLC, the country’s richest sports body, was suspended for two months in 2023 on similar grounds.
Wickramaratne, however, said discussions with the ICC were underway on reforming the SLC.
“Our talks with the ICC have been extremely cordial and constructive,” he said.
“We have been very open and transparent in what we are doing, and they want us to pursue open and transparent methods in doing this.”
Reforms include drafting a new constitution aimed at curbing abuses that allowed groups to retain power for a prolonged period, he added.
Four-time SLC president Shammi Silva and his entire committee stepped down in April after the government intervention, clearing the way for the current overhaul.The previous administration had also faced criticism over the national team’s performances, including an early exit from the T20 World Cup, which Sri Lanka co-hosted with India earlier this year.
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