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Resolution on IMF deal passed with 120 votes

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The Resolution for the implementation of the arrangement under the Extended Fund Facility (EFF) of the IMF for Sri Lanka was passed in Parliament by a majority of 95 votes with 120 voting in favour and 25 voting against it.

The Parliamentary debate on the agreement reached with the IMF started after President Ranil Wickremesinghe made a special statement in Parliament on Wednesday. The debate was held for three days.The SJB abstained since the second half of the final day debate objecting to it stating that government failed to table the IMF/EFF agreement in the House.

After leaving the Chamber, the SJB issued the following release under the signature of Chief Opposition Whip and Kandy District MP Lakshman Kiriella: “The Government is seeking Parliamentary approval, post facto, for the agreement it has entered into with IMF based on Cabinet approval. This is not the first time Sri Lanka is obtaining bailout packages from IMF. Even the last such programme (16th bailout package) was abruptly ended by the present government when it came in to office in 2019.

The IMF staff level agreement on an Extended Fund Facility (EFF) with Sri Lanka is aimed at restoring macroeconomic stability and debt sustainability while safeguarding financial sector stability, protecting the vulnerability and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.

It is incumbent upon the current government to walk the talk on these promises. However, given its previous actions it is doubtful whether going forward, the government will fulfil its promises to the IMF.The SIB has grave reservations in supporting Parliament approval for this agreement for the following reasons:

Lack of transparency

It took the government 200 days to table the arrangement with the IMF in Parliament after reaching an understanding with IMF officials. During this period, the government did not engage Parliament or the Public Finance Committee to discuss the agreement.

Fiscal consolidation

The focus of fiscal consolidation is increasing revenue, while there is no reference to cutting expenditure, which is equally important.

Inequitable Tax burdens on the working classes

In order to raise revenue, the government has agreed with the IMF to take the easy way out by increasing taxes on the working classes, most of whom are already in the tax net. Tax slabs have been narrowed and rates increased sharply. These segments of the population are already weighed down by the burden of high inflation, escalation in energy costs, etc. There is no commitment to widen the tax net and ensure enforced collection on the higher income groups which have for years evaded taxes. Taxation of the rich via wealth and inheritance taxes are to be introduced only in 2025.

Social Security Nets

The poor and vulnerable require continued support through financial transfers. The government proposes to continue use of the current politicised process to target relief payments instead of developing a scientific and foolproof system that ensures leakages are minimised and the deserving beneficiaries are identified.

Financial Services Sector Stability

The absence of safeguards to ensure the stability of the financial services sector through the Sovereign Debt Restructuring process. A Domestic Debt Restructuring (DDR) will have disastrous consequences for the domestic banking sector by destabilizing it both from a liquidity and capital adequacy perspective. A DDR will also seriously erode the value of employee superannuation funds (EPF / ETF). We are opposed to actions that will weaken the banking and financial services sector as a whole, already burdened by high nonperforming loans due to four years of challenges due to the Constitutional Coup, Easter Attacks, the pandemic and disruptions caused in 2022.

Inadequate assurances and Anti-corruption measures

There have been no assurances provided by the President nor members of the Cabinet that the stubborn problems related to corruption vulnerabilities will be addressed and prioritised. In view of the shortcomings in the agreement mentioned above, SJB considers it a futile effort to support this government on this agreement which is already in operation and binding on the government of Sri Lanka. The sole responsibility for meeting the commitments under the agreement with the IMF lies with the government, whether the Parliament approves it or not. Therefore we, the SJB are refraining from voting in favour of this agreement as in our view it has not been well negotiated to safeguard the people of the nation at large and in particular vulnerable communities.”



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Senior citizens above 70 years to receive March allowances on Thursday (26)

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The Welfare Benefits Board has announced that the March allowance for senior citizens over 70 years of age will be credited to each beneficiaries account on Thursday (26th).

693,801 senior citizens over the age of 70 years are set to benifit under this welfare scheme

 

 

 

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CEB Engineers warn public to be prepared for power cuts after New Year

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A looming power crisis is casting an ominous shadow over the country, with engineers warning that the current “no power cut” situation may not last beyond the Sinhala and Tamil New Year due to worsening diesel shortages and ongoing coal-related disruptions.

A senior electrical engineer, attached to the Ceylon Electricity Board Engineers Union, cautioned that while authorities appear to be managing the system for now, the underlying fuel constraints are reaching a critical point.

He told The Island: “At the moment, there are no scheduled power cuts across the country. But this is being maintained under significant strain. With the diesel shortage and unresolved coal issues, sustaining uninterrupted supply, beyond the New Year period, will be extremely challenging.”

The engineer noted that thermal power generation — particularly diesel-based plants — has become increasingly difficult to sustain due to limited fuel stocks and logistical bottlenecks. At the same time, the substandard quality coal supply issues that have plagued recent shipments continue to undermine the efficiency of base-load generation.

“We are stretching available resources to avoid immediate outages. owever, unless there is a rapid improvement in fuel availability, the system will be forced into load shedding soon after the New Year,” he warned.

According to him, authorities are likely to delay any scheduled outages until after the festive season to avoid public backlash and economic disruption during a traditionally sensitive period.

“Most probably, they will try to continue like this until the New Year. But after that, daytime or peak-time load shedding becomes almost inevitable if the situation remains unchanged,” he added.

Energy analysts say the warning reflects a deeper structural vulnerability within the power sector, where over-reliance on imported fossil fuels — particularly diesel and coal — continues to expose the system to external shocks and procurement failures.

The recent use of substandard coal has already resulted in reduced generation capacity at the country’s sole coal power plant at Norochcholai, compounding the pressure on thermal plants to bridge the shortfall. Engineers say this has forced operators to depend more heavily on costly diesel generation — an option now constrained by supply shortages.

Industry sources indicate that demand is also on the rise, particularly during night peak hours, possibly driven by increased reliance on electricity for cooking, amid gas shortages, further tightening the supply-demand balance.

Despite the absence of official announcements, insiders suggest contingency planning for load shedding is already underway.

“If the fuel situation does not improve within the next few weeks, controlled power cuts will be the only viable option to protect the grid from a total system failure,” the engineer stressed.

The warning comes at a time when the country is attempting to maintain economic stability following successive crises, with uninterrupted power supply considered critical for industry, commerce, and daily life.

However, unless urgent corrective measures are taken to secure reliable fuel supplies and stabilise generation capacity, the return of power cuts — including during daytime hours — appears increasingly unavoidable, an expert said.

By Ifham Nizam

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Japanese boost to Sri J’pura Hospital, an outright gift from Tokyo during JRJ rule

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Japanese Ambassador to Colombo, Akio Isomata, on 24 March, handed over the newly established dental unit and 4D Angio CT suite at Sri Jayewardenepura General Hospital. Health Minister Dr. Nalinda Jayatissa and other senior officials from the Ministry of Health and the hospital attended the event.

Highlighting the strong partnership between Japan and Sri Lanka in the health sector, the Embassy issued the following press release yesterday: “This handover marks the second phase of the project, following the initial provision of ophthalmic equipment in December 2023. The current phase represents a significant milestone, featuring the introduction of a state-of-the-art CT Angiography system – the first of its kind in South Asia – as well as dental units. These contributions are expected to enhance Sri Lanka’s capacity to address non-communicable diseases (NCDs), including cancer, stroke, and diabetes, thereby saving lives, reducing long-term complications, and improving the quality of life of patients.

The CT Angiography system integrates CT scanning and angiography functions, enabling highly accurate and timely diagnosis and treatment. It is expected to further strengthen the hospital’s role as a key medical hub in Sri Lanka and the wider region.

In addition, the provision of 10 dental units will support the establishment and enhancement of dental services at the hospital. In Japan, oral health is considered closely linked to overall health and plays an important role in extending healthy life expectancy. This support is, therefore, also expected to contribute to the promotion of preventive healthcare in Sri Lanka.

The Sri Jayewardenepura General Hospital was constructed in 1984 with grant assistance from the Government of Japan. The well-known “1001-bed” story—originating from former President J.R. Jayewardene’s remark to add one more bed to the originally planned 1,000—remains a memorable episode reflecting the history of this cooperation.

Japan has consistently supported Sri Lanka’s health sector over the decades, including the development of medical facilities, strengthening of blood supply systems, and support during the COVID-19 pandemic through vaccine delivery assistance. Furthermore, during Sri Lanka’s recent economic crisis, Japan provided fuel essential for maintaining healthcare services, and in times of natural disasters, dispatched emergency medical teams to deliver urgent care. These efforts demonstrate Japan’s continued commitment to standing by Sri Lanka, especially in times of need. These efforts reflect Japan’s commitment to “investment in people” and “human security,” supporting a healthcare system in which all individuals can live healthy and dignified lives.

Japanese Ambassador Isomata with Minister Dr Jayatissa and officials (pic courtesy Japanese Embassy)

Ambassador Isomata remarked, “This support is not merely for the provision of equipment, but also for the consolidation of the foundation for safeguarding lives and livelihoods. Sri Jayewardenepura General Hospital, built with the support of Japan, stands as a symbol of the longstanding friendship between our two countries. We sincerely hope that this project will contribute to building a sustainable healthcare system that benefits future generations in the field of medicine and further strengthen our partnership.”

Minister Jayatissa highlighted,” This is not just a donation of machines. It is an investment in the lives and futures of our patients. By establishing this modern dental unit, we are addressing a critical need in the prevention and treatment of oral diseases for our population. I wish to express our deepest gratitude to the Government and people of Japan for this generous assistance. These are acts of true friendship, and the people of Sri Lanka will always remember them with gratitude.”

Japan will continue to work closely with Sri Lanka to further strengthen the healthcare sector and deepen the longstanding friendship between the two countries.”

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