Features
Ranil prepares to govern the country cohabiting with President CBK
Since his office was now to behave in the manner of an executive prime ministerial centre which would support him as virtual head of government, Ranil set about restructuring the order of business in the house. He wanted papers and callers dealt with in a systematic, organized way. It was not going to be business as usual when the PM’s office had been a post office passing-on all and sundry to the all-powerful executive president’s office for decision. The `buck’, as Harry Truman had said, would stop here.
The first thing Ranil did was to ask me to drop in at the prime minister’s office in Britain and spend a day there looking at how No 10 (Downing Street) was organized. He thought that would be the closest model to follow. So on a trip back from Washington I spent some time at No 10. Alastair Campbell, the media guru to Prime Minister Tony Blair was not available that day but all the other heads of divisions were most helpful. The essential point I got from No 10 Downing Street was the priority the Prime Minister, Tony Blair attached to information and the media. It was all about keeping the public informed, and the prime minister’s thinking, on the major issues of the day.
The strategies included even the manner of presentation and the timing of the presentation of news to the public. A tip they suggested was to have a particular item of good news held for an appropriate action and released at that time. In a way, it was like having something in hand to be given to the media on a once-a-day basis. Interaction with the media was deemed so important in the modern prime minister’s office that Campbell or an assistant would meet with the media corps sometimes even twice a day.
Ranil built on the information I brought back from London and the Media Center at the Gramodaya in Kollupitiya and the institution of a government spokesman came out of that experience. What we clearly lacked was our own Alastair Campbell, who had earned the sobriquet of the ‘spin doctor’, although a few external advisors from Britain were immensely helpful and generous with lots of good advise. The media team was an important part of our overseas visits. There was always a good mix of state and private media men and women on the trip and they covered the news very speedily and fully, so that those back home had a regular view of what Ranil and his troupe were doing abroad. It was expensive, especially all the phone calls and sending of voice cuts and ‘photo opps’ but the public relations aspect necessitated it.
Ranil’s interest in the media and media reform
Ranil’s own background with the media, extending back through his father Esmond Wickremesinghe, Managing Director of the Associated Newspaper of Ceylon Ltd, and further back to his grandfather, the famous D R Wijewardena who was founder of Lake House, had already impelled him to set up new structures and mechanisms relating to the media. There were at least three specific areas on which he acted very fast. First of all was the legislative framework for the media. Following a series of regular meetings with the editors (this was to take place on a monthly basis), the journalists association and the Free. Media Movement he got passed through Parliament, legislation which was of extreme value for the creation of a conducive media environment that would match the highest standards required of a free media.
This legislation was to cover the concept of freedom of expression, amend the existing law regarding criminal defamation which acted as a constraint to the free expression of views, the setting up of a Press Complaints Commission to replace a moribund Press Council and to establish a Press Institute which would set, from within, standards for journalists to follow, and update their training.
The second approach was to establish a fully equipped and staffed government media centre. This was on the premise that the press was not going to be curbed again with emergency regulations which had censored the press effectively for long periods. Since a virtually free press was going to be stimulated, Ranil felt that a strong mechanism should be in place for the propagation of the government’s own position. The third idea was to work towards a gradual broad-basing of the state-owned media. This had been continually abused by the government in power.
His design for the PM’s office involved a strict separation of functions between the purely political and personal side, and the official. The secretary (myself) would in theory exercise overall supervision. But I was insulated against political and personal pressures by such issues being put up to the party and public affairs unit handled by the private secretary and two or three confidantes associated with party headquarters.
My work on the official side would be handled from the Flower Road office. Ranil left this work to be handled entirely at my discretion. As a link to him at Temple Trees, where he had a very modest set of rooms to work in as an office, he wanted me to find working space in one of the upper-floor bedrooms at Temple Trees. Later on with the help from the US$ 100 million ‘Indian line of credit’ we managed to computerise and link our two separate offices on the internet. Ranil was always very clued-in on technology and especially recognized the value of ICT (Information Communication Technology) as a tool to bring government services to the people.
The Batalanda case
One of the increasing trends in political life has been for the leader to be caught up in a public commission of inquiry. These usually refer to decisions and actions taken while one was in government and are political, in that they are brought up at the time that the person is out of office. It happened in the case of W Dahanayake around the conspiracy behind the assassination of Bandaranaike; to Sirimavo regarding her extension of the emergency, to ostensibly keep herself in power, and now in the case of Ranil Wickremesinghe about some incidents during ‘the period of terror’ between 1989 and 1992.
Ranil had to face a commission of inquiry while he was the leader of the opposition in 1998 and when he was poised to contest at the forthcoming presidential elections. It was referred to popularly as the ‘Batalanda Case’ and concerned certain activities which took place at the Batalanda Housing Scheme in the Kelaniya electorate. Ranil had used one of the bungalows in the housing scheme as an office during his period as minister of industries and scientific affairs and of youth and employment.
The specific allegation was that he was aware of certain illegal activities which took place in some of the houses in the Batalanda Housing Scheme, which were used by the police as places of unlawful detention, including the torture of persons suspected of being JVP insurgents. The commission was appointed by President Chandrika Kumaratunga in September 1995. It was given several extensions and the report was finally presented to the president only in March 1998.
The only charge against Ranil was under section (e) of the terms of reference which mandated the Commission to inquire into whether any officer or any other person was responsible for the commission of any criminal offences under any law or the use of undue influence or misuse or abuse of power in relation of any of the issues connected thereto. Ranil had to appear personally before the commission in a widely publicized session to answer the allegations against him. All that the commission could find against was that as minister of industries and scientific affairs, he had given directions regarding the allocation and lease of houses at the Batalanda Housing Scheme (which were later used as places of unlawful detention), and had at meetings given directions pertaining to the conduct of the police relating to anti-subversive activity.
Soon afterwards, Ranil won at the general election of December 2001, thereupon vindicating his conduct in the eyes of the public. Batalanda surfaced again in April 2004 in the TV debates” that have now become a popular spectacle each evening at election time. The relevance and value of these ‘inquisitorial’ inquiries appointed under the Commissions of Inquiry Act No 17 of 1948 remain moot.
Government hospitality
Ranil took great pains to see that the hospitality and the social side of the prime minister’s office functioned properly. The heavy work schedule he set himself required that there be regular working lunches and dinners at Temple Trees. The organization of these were the responsibility of Indrani Wijeratne and Hema Pieris and much effort and time was expended in delivering quality products. Maithree Wickramasinghe provided invaluable support in advising and directing how such receptions and social engagements should be done.
The decor of the public areas – the sitting and dining halls in particular – now took on an extraordinary elegance. The dinning room equipment and the curtaining and ornamentation, which over time had become worn out and stale, were modernized. The ornaments and paintings, as well as the cutlery used on formal occasions were the personal property of the Wickremesinghe’s. The kitchens were- redesigned and new kitchen staff recruited. Ranil and Maithree shared the view that rather than hire Hilton and Oberoi to provide the catering (at enormous cost) high quality capacity should be developed from within so that Temple Trees itself could do it appropriately and without the high overheads.
It needed bringing in chefs to replace the old-time ‘bungalow keeper’ but the effort was worth it. Complimentary letters soon began to come in from those who had dined at Temple Trees. The staid printed menu card on glossy paper gave way to a highly imaginative unevenly cut, rolled-up little scroll tied with coir string. On opening up you read the menu, hand-written in italics on rough, recycled elephant dung paper! It often provided a delightful, if somewhat unusual, opening conversational topic.
The beginning of the end of a chapter – November 4, 2003
Ranil knew that although he had won convincingly in the 2001 elections gaining a total of 109 seats to the PA’s 77, in terms of the 1978 Constitution, which gave the president enormous power, he would have to manage his victory somehow in the difficult political system of `cohabitation’ which was implied whenever the presidents and prime ministers came from different party groupings. This was the first occasion when the process was in fact going to be tried out, barring a few months in the Wijetunga presidency when D B was literally a ‘lame duck’.
Ranil and Chandrika had been childhood friends but the rivalry which existed between the Bandaranaikes on the one hand and the Senanayakes, Jayewardenes and now Wickremesinghes were well known. It was almost Shakespearean in its working out and there would be many rivers to cross to maintain the full six-year tenure of office to which he was entitled by his electoral victory.
His first task was to obtain from the president all of the ministries which were necessary for the exercise of full governmental power.
In the middle of December 2001 at Cabinet formation, Ranil was so strong in the country – his “I will give you peace” slogan having such an overwhelming response – that he clearly had the upper hand. There was some resistance from President Chandrika to the handing over of defence, which she claimed was her inherent responsibility as the president. But since Ranil had a clear mandate from the people to enter into political negotiations with the LTTE and establish an early cease-fire, that authority over the military establishment was absolutely essential. So he was able to wrest the defence ministry from the president’s hands and place Tilak Marapana, a one-time attorney-general of the country to be in charge of the portfolio.
The president had apparently reminded Ranil that there was the precedent of D B Wijetunga in 1994 retaining the defence portfolio while she was the prime minister in an earlier cohabitationary set-up. Ranil had countered that the two situations were not on all fours – D B having only a very short tenure of office to go before the presidential election.
The ‘Cohabitation’ between the president and Ranil did not work at all well during the months that followed. There were basic differences of policy, behaviour and styles of management between the two and rather than collaboration there was opposition, competition and alienation. Cohabitation envisaged a Cabinet meeting with the president as chair. However more often than not, the president was absent and the Cabinet had to take its decisions without her presence in the chair.
On the few occasions that she was present there was acrimonious debate between her and the more vociferous members of the Cabinet on a range of very political issues. The question of the procurement of 44 security vehicles at great cost after the assassination attempt on the president in 1999, came in for a lot of flak. Similarly, an allegation that the president was taping everything that happened in Cabinet through a secret listening device that she had hidden in her handbag raised tempers and kept her embittered. The Cabinet was one of the largest ever and often it was her, the president alone, standing up against many very critical members of the Cabinet.
(Excerpted from ‘Rendering Unto Caesar’ by Bradman Weerakoon) ✍️
Features
Sri Lanka’s vanishing wetlands put elusive otter under growing threat
The world marked World Otter Day 2026 recently. Conservationists are warning that Sri Lanka’s rapidly disappearing wetlands, polluted waterways and unplanned development are placing increasing pressure on one of the island’s most elusive freshwater predators, the Eurasian otter (Lutra lutra).
The species, locally known as “Diya Balla”, is the only otter found in Sri Lanka and is regarded as a key indicator of healthy freshwater ecosystems. Yet despite its ecological importance, experts say the animal remains poorly studied and largely overlooked in national conservation planning.
Naturalist and conservationist Chaminda Jayasekara, who has spent years documenting otters in Sri Lanka, said the species is facing mounting environmental pressures across the island.
Speaking to The Island, Jayasekara said habitat destruction, chemical pollution, road kills, sand mining, and increasing human disturbance are fragmenting the waterways on which otters depend.
“Otters are extremely sensitive animals. When wetlands are degraded or rivers become polluted, they disappear very quickly. Their survival is directly linked to the health of freshwater ecosystems,” he said.
Jayasekara, who specialised in MSc Environmental Management at the University of Hertfordshire, noted that while the species has been recorded across Sri Lanka’s wet zone, dry zone and coastal wetlands, scientific data on population numbers and distribution remain limited.
According to him, the decline of wetlands has become one of the most serious environmental issues facing Sri Lanka. Marshes, mangroves, irrigation tanks and riverine habitats are increasingly being altered by urban expansion, tourism infrastructure, encroachment and agricultural runoff.
He warns that the loss of these habitats not only threatens otters, but also weakens flood control systems, freshwater security and biodiversity resilience at a time when climate-related disasters are becoming more frequent.
Jayasekara said otters play a vital ecological role by helping maintain balanced fish populations and healthy aquatic ecosystems.
“When otters thrive, it tells us the river system is functioning properly. Their presence is a sign that water quality, fish diversity and habitat conditions remain healthy,” he explained.
One of the best-known locations for otter sightings in Sri Lanka is Aranga Pond, within the Horton Plains National Park, where the species has adapted to the island’s cold montane ecosystem.
However, conservationists stress that even protected areas are not immune to broader environmental degradation occurring outside park boundaries.
Jayasekara’s own work on otters gained prominence through long-term conservation efforts at Jetwing Vil Uyana, where a former degraded chena landscape was restored into a functioning wetland ecosystem.
The restored habitat eventually attracted Eurasian otters, fishing cats, grey slender lorises and numerous wetland bird species.
Over 14 years, Jayasekara carried out field observations, camera trapping and awareness programmes involving hotel staff, surrounding schools and local communities.
“What happened at Vil Uyana clearly showed that habitat restoration works. If degraded ecosystems are given time to recover, wildlife can return naturally,” he said.
He added that wetland restoration should become a central component of Sri Lanka’s environmental policy, particularly as climate change intensifies droughts, floods and biodiversity loss.

Chaminda collecting scat for research purposes in Sigiriya
He says wetlands are among the planet’s most productive ecosystems, functioning as natural water filters and carbon sinks while providing breeding grounds for fish, amphibians and aquatic mammals.
Yet globally, wetlands are disappearing at an alarming rate, and Sri Lanka is no exception.
Conservation groups have repeatedly warned that illegal waste disposal, pesticide contamination and poorly planned infrastructure projects are severely affecting freshwater ecosystems throughout the country.
Jayasekara also highlighted the importance of stronger environmental education and community participation in conservation.
“Awareness is still very limited. Many people living close to wetlands do not realise the ecological importance of otters or the threats they face,” he said.
According to him, involving local communities in conservation monitoring is essential if Sri Lanka hopes to safeguard the species in the long term.
He also pointed to the growing international interest in otter conservation.
In November 2025, Jayasekara represented Sri Lanka at the International Eurasian Otter Conservation Workshop held at Colchester Zoo and organised by the International Otter Survival Fund.
The workshop brought together nearly 100 researchers, conservationists and wildlife experts from 33 countries to discuss emerging threats facing Eurasian otter populations.
Jayasekara presented Sri Lanka’s experience under the theme Rewilding Through Hospitality, focusing on how habitat restoration and sustainable tourism practices at Vil Uyana contributed to otter conservation.
“The international response was extremely encouraging. Many delegates were surprised that a tourism property in Sri Lanka had quietly carried out wetland conservation work for more than a decade,” he said.
Discussions at the workshop also examined wider environmental concerns including river pollution, declining fish stocks, illegal killings and habitat fragmentation affecting otter populations across Europe and Asia.
New conservation technologies such as AI-assisted wildlife tracking and environmental DNA surveys were also highlighted as emerging tools for monitoring elusive species.
Jayasekara said Sri Lanka urgently requires more scientific surveys, stronger environmental law enforcement and greater investment in freshwater conservation research.
He warned that unless wetlands and waterways are protected, several lesser-known freshwater species could face severe decline in the coming decades.
Environmentalists say otter conservation should not be viewed in isolation but as part of a broader effort to protect entire freshwater ecosystems that millions of Sri Lankans depend on for drinking water, irrigation and livelihoods.
He further noted that healthy wetlands also strengthen climate resilience by absorbing floodwaters, reducing soil erosion and supporting groundwater recharge.
As Sri Lanka experiences increasingly erratic weather patterns linked to climate change, conservationists argue that protecting wetlands is becoming both an ecological and economic necessity.
Jayasekara believes Sri Lanka still has an opportunity to become a regional example in balancing tourism, biodiversity conservation and habitat restoration.
“The otter teaches us an important lesson,” he said. “If rivers are protected and wetlands are respected, nature has an incredible ability to recover.”
This year’s observance of World Otter Day 2026 is, therefore, serving not only as a celebration of one of the world’s most charismatic mammals, but also as a reminder of the urgent need to conserve the fragile freshwater ecosystems upon which both wildlife and human communities ultimately depend.

Eurasian otter
By Ifham Nizam
Features
Malaiyaha Tamil people: Healing the Oldest Wound of Independence
In their Vesak messages this year, President Anura Kumara Dissanayake and Prime Minister Harini Amarasuriya highlighted the values of reconciliation, coexistence and justice as essential to Sri Lanka’s future. President Dissanayake emphasised that Buddhism’s teachings remain deeply relevant to contemporary society and described Vesak as a symbol of “mutual understanding, unity and coexistence among all communities” and of reconciliation itself. Prime Minister Amarasuriya similarly called for the building of a society in which justice is assured to all irrespective of caste, race or religion. These messages were not merely religious aspirations, they were a direct challenge to the most serious failures in Sri Lanka’s post-independence history. These include the three-decade-long war, its human rights violations and the inability to implement a political solution.
These have been and continue to be the challenges that have prevented Sri Lanka from reaching its full potential. Added to this have been the persistence of social and economic inequalities that continue to marginalise communities at the bottom of the social hierarchy. One of the most enduring examples of such injustice is the experience of the Malaiyaha Tamil community. The scale of the original exclusion is worth understanding clearly. According to the 1946 Census, the Malaiyaha Tamil community numbered approximately 780,600 persons and constituted 11.73 percent of the country’s population making them the second largest ethnic community, larger than the Sri Lankan Tamil community who numbered 733,700 or 11.02 percent of the population at the time
The denial of citizenship and voting rights to the Malaiyaha Tamil community was the first major injustice inflicted on an ethnic minority in post-independence Sri Lanka. The consequences were devastating and long-lasting. A community that had contributed enormously to the country’s economy through its labour on the plantations was excluded from political participation and denied basic rights. This was a political and moral failure that cast a long shadow over the country’s post-independence history. Responsibility for that injustice needs to be shared widely. Political leaders across ethnic lines failed to resist it. The result was the marginalisation of a community whose contribution to national prosperity far exceeded the recognition it received. Today, nearly eight decades later, Sri Lanka has an opportunity to correct that historic wrong but only if economic reform is matched by genuine social inclusion.
Longstanding Grievances
The NPP government has repeatedly acknowledged the need to address the longstanding grievances of the Malaiyaha Tamil people. In its election manifesto, the NPP pledged to improve living conditions in plantation areas, strengthen land and housing rights, ensure equal access to education and public services, and integrate plantation communities more fully into national development. The NPP’s Nuwara Eliya Declaration of 2023 similarly recognised that the plantation community had suffered generations of exclusion and promised measures to address disparities in housing, land ownership, infrastructure, education and economic opportunity. The need for such action is plain to see. While citizenship issues have largely been resolved over time, the socio-economic consequences of decades of exclusion remain deeply entrenched and continue to shape daily life in plantation communities. A conference organised by the Institute of Social Development to mark International Tea Day on May 21 at the BMICH brought out this and many other salient issues. Headed by P Muthulingam the organisation has advocated for the rights of the Malaiyaha Tamil people for the past 35 years to be equal citizens who enjoy social and economic justice.
The central problem facing many plantation workers is the low level of income they receive. Daily wages remain among the lowest in the country relative to the difficulty and intensity of the work. Plantation labour continues to depend heavily on methods that have changed little over generations. Productivity remains low compared to competing tea-producing countries — not because workers lack capability, but because sustained investment in their welfare, skills and economic mobility has been withheld. Workers consequently remain trapped in a cycle of low wages and limited economic mobility. Their housing situation compounds these difficulties. Many plantation families continue to live in housing owned either by plantation companies or the state. Lack of secure ownership limits their ability to accumulate assets, access credit or make independent decisions regarding their future. When Cyclone Ditwah damaged plantation housing, it exposed the inability of those living in that housing to access state compensation as they did not own the housing in which they lived.
The problems extend beyond the central highlands. Plantation workers living in private estates and smallholdings in other parts of the country face similar challenges. A recent Amnesty International report documented serious abuses affecting Malaiyaha Tamil workers in private tea estates in the Southern Province. These include wage withholding, debt dependency, restrictions on movement and intimidation and practices the report argued correspond to internationally recognised indicators of forced labour. These findings are not peripheral. They reveal that the structural exclusion of the Malaiyaha Tamil community is not a relic of the past but an active, ongoing condition. Economic vulnerability and social marginalisation continue to leave many plantation workers without effective protection or access to justice. It is against this backdrop that the government’s recent plantation reform initiative assumes special significance.
Second Phase
The government has announced the second phase of a programme to make underutilised plantation lands and assets available for investment. The objective is to transform underperforming assets into productive enterprises capable of generating employment, attracting investment and revitalising regional economies. The programme seeks to modernise the plantation sector, improve productivity and create new opportunities in tourism, renewable energy and export-oriented industries. These objectives are necessary and welcome. However, economic reform alone will not be sufficient and Sri Lanka’s own history provides the warning. Previous rounds of plantation modernisation pursued productivity gains without addressing the structural disempowerment of the people at the centre of the industry. The result was investment that generated wealth without distributing it. The workers who produced the wealth were once again treated as labour inputs rather than as beneficiaries. If the current reform follows the same logic, it risks reproducing the same failure.
For reform to succeed, plantation workers must be recognised not merely as a labour force but as stakeholders with rights, aspirations and a legitimate claim to share in the benefits of development. Housing ownership, secure land tenure, quality education, vocational training and entrepreneurship need to be built into the reform process from the outset. The government’s commitments to the Malaiyaha Tamil community therefore need to be incorporated into every stage of the reform process. On the contentious question of land, the government should consider establishing an independent national land commission. Such a body should include respected government officials, professionals and representatives from all ethnic and religious communities. It should review land policy comprehensively, develop transparent principles for allocation and use, ensure fairness in decision making and provide a trusted mechanism for resolving disputes. A credible land commission would help build public confidence that land reforms are being undertaken in the national interest rather than for the benefit of particular groups.
The correction of historic injustices should not be viewed as a concession to one community. It should be understood as an investment in national unity, because societies do not become stronger by maintaining the exclusion of those they have wronged. On the contrary, they become stronger by ending it. The first great injustice committed against an ethnic minority after independence cannot be undone. But its consequences can be addressed, and doing so would strengthen reconciliation, enhance social cohesion and bring Sri Lanka closer to the vision of a country in which all communities live with equal dignity and equal hope. This is what the Vesak messages of the President and Prime Minister promised. The plantation reform now underway is the moment to make good on that promise not in words alone, but in sustained policy that endures beyond any single government and reaches the people who have waited longest for it.
by Jehan Perera
Features
IMF relief is not economic recovery: Sri Lanka’s real test begins now
The IMF’s latest decision to release approximately US$695 million to Sri Lanka provides an important measure of financial relief, but it should not be mistaken for full economic recovery. While the approval reflects progress in stabilisation, fiscal discipline, and reform implementation, the country still faces deep structural weaknesses, social pressures, and external risks. The real test begins now: whether Sri Lanka can convert this temporary breathing space into lasting reform, productive growth, stronger institutions, and national resilience. This moment should not be used for political celebration, but for serious national reflection and responsible action. Sri Lanka must now resolve to support a clear policy direction, a practical reform programme, and a long-term national development path — not merely an individual, a party, or a political camp.
1. IMF Relief: A Necessary Step, but Not a Final Solution
The IMF Executive Board recently completed the combined Fifth and Sixth Reviews under Sri Lanka’s Extended Fund Facility, allowing the country immediate access to SDR 508 million, approximately US$695 million. This decision represents an important step in Sri Lanka’s ongoing economic recovery process following the severe crisis that led to sovereign debt default, shortages of essential goods, high inflation, and the collapse of foreign reserves in 2022.
However, this decision must be understood with great sensitivity. IMF relief is not the same as full economic recovery. It gives Sri Lanka temporary breathing space, helps rebuild a certain level of international confidence, and supports the continuation of the reform programme. However, this relief is not a magic solution that can automatically resolve the country’s deep-rooted economic problems. Fundamental challenges such as the debt burden, weak productive capacity, low export earnings, poor public revenue performance, weak fiscal management, excessive dependence on imports, corruption, and inefficient state-owned enterprises still remain unresolved. Addressing these challenges requires domestic reforms, disciplined policies, stronger production and export capacity, and a long-term national development programme. Therefore, the IMF decision should not be treated as a political victory or as proof of complete economic success. Rather, it should be seen as a reminder that Sri Lanka still has a long and difficult journey ahead.
2. Sri Lanka’s Progress Recognised by the IMF and Its Limits
The IMF’s approval indicates that Sri Lanka has made progress in several important areas. Inflation has been brought under control compared to the extreme levels experienced during the crisis. Foreign reserves have improved, the exchange rate has shown greater stability, and fiscal management has become more disciplined. The government has also continued to implement reforms in taxation, public finance, energy pricing, and debt restructuring.
According to the IMF assessment, performance under the programme has generally been strong. Several quantitative performance targets have been met, while many structural benchmarks have either been achieved or implemented with some delay. This shows that Sri Lanka has remained broadly committed to the reform path agreed under the IMF-supported programme.
Yet this progress remains fragile. Stability achieved through external support must now be converted into genuine economic strength.
3. Conditions and Responsibilities Attached to the IMF Programme
IMF support does not come merely as financial relief; it comes with a set of important reform conditions and responsibilities that Sri Lanka must fulfil. Key among them are maintaining fiscal discipline, improving government revenue, continuing cost-reflective pricing for fuel and electricity, strengthening public financial management, restructuring state-owned enterprises, protecting institutional independence, and preventing the accumulation of new external payment arrears.
The main objective of these conditions is to restore macroeconomic stability, strengthen fiscal credibility, and rebuild international confidence in Sri Lanka. However, these reforms also carry social and political consequences. Higher taxes, market-based utility pricing, and strict expenditure controls can place a heavy burden on ordinary citizens, especially low-income families, small businesses, pensioners, and salaried workers. Therefore, in implementing reforms, economic discipline alone is not enough. Fairness, transparency, and social sensitivity towards vulnerable groups must also be treated as essential priorities.
4.The Impact of IMF Conditions on People and the Economy
One major social consequence of the IMF programme is the increased pressure it can place on household incomes and living standards. When electricity, fuel, and other essential services are priced on a cost-recovery basis, people may have to face a higher cost of living. Although such reforms are necessary to reduce the losses of state-owned enterprises and maintain fiscal discipline, they can weaken the purchasing power of ordinary citizens if strong social protection programmes are not in place.
Another important consequence is the pressure placed on the operating costs and stability of small and medium-sized enterprises. Higher taxes, increased utility costs, fuel and electricity expenses, and the rising cost of borrowing can affect business survival, job creation, and new investment decisions. If reforms are implemented without sufficient attention to production, exports, and small businesses, the country may achieve short-term fiscal stability, but long-term economic growth could remain weak.
There is also a political risk that cannot be ignored. If people feel that the burden of reform is not being shared fairly, reform fatigue and public frustration may emerge. If ordinary citizens are expected to make sacrifices while corruption, waste, and political privileges continue, public confidence in the reform process will decline. Therefore, for IMF-supported reforms to succeed, fairness, transparency, and social sensitivity must be firmly ensured alongside economic discipline.
5. The Real Test Before Sri Lanka
Sri Lanka’s real test begins now. Beyond temporary financial relief, the country must now prove that it can build a strong economy that generates income and can withstand external shocks. Therefore, our objective should not be limited to securing the next IMF tranche. While an IMF tranche may provide short-term breathing space, it does not guarantee long-term economic independence or stability. The real objective should be to create an economy that does not have to return to the IMF repeatedly during every crisis, but can stand on its own productive strength, export earnings, and fiscal discipline.
This requires fiscal discipline. However, discipline alone is not enough; economic growth is also necessary. Taxation is necessary. But increasing taxes alone is not a solution; production, investment, and exports must also be expanded. Debt restructuring is necessary. But beyond reducing the debt burden, Sri Lanka must also build an economic foundation that does not depend excessively on borrowing in the future. Sacrifices may be asked of the people. But for those sacrifices to be fair, accountability, transparency, and exemplary conduct from leaders are also essential.
Economic recovery cannot be sustained in the long term through financial assistance alone. Such support can provide breathing space during a crisis, but a country is rebuilt on the strength of its own institutions, productive capacity, export competitiveness, and public trust. Therefore, what Sri Lanka needs today is strong institutions, income-generating industries, a broader export base, food security, energy security, and a system of governance that people can trust.
6. Policy Priorities for Sustainable Recovery
Sri Lanka must now move from crisis management to national transformation. First, fiscal discipline should continue, but it must be fair. Revenue mobilisation should not rely only on increasing taxes on the same groups of people. The tax base must be broadened, tax administration must be improved, and tax evasion must be reduced.
Second, social protection must be strengthened. The most vulnerable groups should be protected through well-targeted assistance. Reforms will be more acceptable if people feel that the poor, elderly, disabled, and low-income families are not abandoned.
Third, state-owned enterprise reform should be carried out with transparency and public accountability. The objective should not merely be privatisation, but efficiency, professionalism, financial discipline, and better service delivery.
Fourth, Sri Lanka must prioritise export-led growth. The country cannot build a stable future by depending mainly on borrowing, remittances, and consumption. Agriculture, tourism, manufacturing, IT services, logistics, education, and value-added exports must become central pillars of national development.
Fifth, governance reform is essential. Without reducing corruption, political interference, wasteful expenditure, and weak implementation, no IMF programme can create lasting recovery. Economic reform and governance reform must move together.
7. From Temporary Relief to Lasting Recovery
The IMF decision gives Sri Lanka an important opportunity. It provides the country with space to strengthen economic stability, rebuild international confidence, and move forward with essential reforms. However, it is not a guarantee of success. It is only a step that gives the country some breathing space. It is now Sri Lanka’s responsibility to use that space wisely, with discipline and accountability to the people.
The country must now decide whether it will continue the old cycle of crises, debt, temporary relief, and political blame, or whether it will build a new national programme based on discipline, productive capacity, fairness, and accountability.
At this moment, true success cannot be measured by the amount of money received. It must be measured by whether Sri Lanka can build an economy that produces more, exports more, saves more, is governed better, and protects its people more effectively. The real victory is not receiving IMF relief, but building a strong national economy that will not depend excessively on such relief in the future.
Public Appeal: Let Us Choose a Programme, Not a Personality
This US$695 million will not solve every problem in our country. It may provide temporary financial relief and support the continuation of reforms, but it cannot replace the hard work required to build a productive, disciplined, inclusive, and self-reliant economy.
Therefore, this is the right time for all Sri Lankans to rise above narrow political loyalties and support a clear policy direction, a practical reform programme, and a long-term national development agenda — not merely an individual, a party, or a political camp. What Sri Lanka needs today is not the victory of a personality, but the victory of a responsible national programme that can restore confidence, protect the vulnerable, promote production, strengthen exports, ensure accountability, and secure a better future for the next generation. The question before us is simple but decisive: are we ready to make that choice?
by Prof. Ranjith Bandara,
PhD (Qld.,)
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