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Sabry names culprits, asks for system overhaul
Economic crisis: ‘Money printing cannot be stopped completely’
By Shamindra Ferdinando
Finance Minister Ali Sabry, PC, has said that the Secretary to the Treasury, Governor of the Central Bank, and senior economic advisors to the President, misled the Cabinet as regards the economic situation.
They repeatedly assured that the situation was well under control, despite difficulties, lawmaker Sabry has said. That team expressed confidence that issues could be successfully dealt with, lawmaker Sabry said.
Sabry said so in a live interview on Swarnavahini Monday (02) night, the first since his return from Washington, where he led the government delegation at talks with the International Monetary Fund (IMF) and the World Bank.
Sabry said that the Cabinet-of-Ministers had realised the gravity of the situation in August 2021.
However, he was not asked about his predecessor Basil Rajapaksa who was blamed for aggravating the economic crisis.
By the time the Central Bank floated the rupee in March this year even without bothering to inform the Cabinet-of-Ministers of its decision, irreparable damage had already been caused, Minister Sabry said.
He said those who managed the national economy had prevented the country seeking IMF’s intervention well over a year back. Had President Gotabaya Rajapaksa and the Cabinet-of-Ministers received proper advice, Sri Lanka would not have been in the current predicament, Minister Sabry said.
Prof. W. A. Lakshman (Dec 2019-Sept 2021) and Ajith Nivard Cabraal (Sept 2021-March 2022) served as Governors of CBSL, S.R. Attygalle was as Secretary, Ministry of Finance (Nov 2019-April 2022) whereas Dr. P. B. Jayasundera functioned as Secretary to the President (Nov 2019-Dec 2021).
Minister Sabry said that depending on how the government and the Opposition as well as other interested parties responded to the current crisis, Sri Lanka could overcome the daunting challenges the way India, Thailand and South Korea had done or end up like Lebanon or Venezuela.
During the interview conducted by a panel led by Saddha Mangala Sooriyabandara, MP Sabry said most MPs representing both the government and the Opposition seemed unaware of the ground situation.
Responding to a question on the availability of funding to meet the basic requirements, Minister Sabry said that foreign reserves were zero. Having mentioned specific loans that had to be honoured during the April-July period, Minister Sabry said, adding that Sri Lanka had resorted to the only tangible action plan available under the present circumstances.
According to Minister Sabry Sri Lanka was left with no alternative but to restrcuture debt as underscored by the IMF. He said the government would a team of experts to represent Sri Lanka at debt restructuring talks with the relevant parties. The President’s Counsel expressed confidence that the selection process could be finalised by the time the Cabinet-of-Ministers meets again next week.
Declaring that the debt restructuring process was complicated the task, Minister Sabry said that the issues included loans obtained from the IMF, WB and other similar institutions, bilateral loans obtained from Japan, China and India et al), and funds raised from international money markets at up to 7% interest.
He found fault with successive finance ministers for simply repeating what the Treasury and the CBSL provided.
Emphasising the accountability on the part of successive governments, particularly those who had served as finance ministers for the crisis that had engulfed the country, Minister Sabry called for a system overhaul. He questioned the utilisation of funds over the past several decades as financial accountability and transparency deteriorated to such an extent the fate of Sri Lanka depended on external factors.
Minister Sabry said that the economy had suffered a severe setback due to unasked tax reduction that deprived the government over Rs. 500 bn annually. The minister said that the tax cut announced soon after the 2019 presidential election had weakened the fiscal status, and therefore it could not be accepted as a prudent decision. Referring to R. Paskaralingam role during Ranasinghe Premadasa’s tenure as the President, Minister Sabry said that ‘yes men’ had caused irreparable damage. In the absence of proper parliamentary supervision and decision-making process based on data, successive governments had been proceeding on wrong paths, Minister Sabry said, adding that the pandemic and the war in Ukraine this year had made matters worse for Sri Lanka.
Minister Sabry quoted the IMF delegation during talks with his team in Washington as having said that a combination of debt inheritance, bad policies and bad luck had resulted in the current crisis.
Referring to a hastily arranged meeting he had with Chinese Ambassador in Colombo Qi Zhenhong in the wake of the Chinese envoy expressing concern over Sri Lanka’s dialogue with the IMF, Minister Sabry said that an assurance had been received as regards Beijing’s continued support. Minister Sabry said that Sri Lanka needed the support of India, China and Japan.
The IMF loan facility could be finalised in about 6-8 months, the Finance Minister said adding that Sri Lanka expected USD 3-4 bn from the IMF over a three-year period.
Pointing out that international crude oil prices had recorded a staggering 138% increase due to the Russian invasion of Ukraine, Ministry Sabry said that the biggest issue the country faced was the supply of petroleum products. He revealed that out of the USD 500 mn Indian credit line for petroleum products, already USD 400 mn had been utilised and of the USD I bn loan facility, USD 200 mn had been sought for the import of petroleum products. Minister Sabry further said that the government had asked India to enhance USD 500 mn credit line for the import of petroleum products to USD 1 bn.
Sabry dismissed concerns over IMF conditions and explained how IMF conditions would help the country achieve financial stability.
He stressed need for gradual and an all-round revenue increase as part of the overall measures to stabilise the national economy. Sri Lanka was now paying the price for the failure of successive governments to streamline tax collection, he added. The state revenue had been 24 percent of the GDP in 82/83 but by 2020/2021 it had dropped to 8.6%, Minister Sabry said, pointing out the state revenue was not even sufficient to pay public sector salaries, pensions, Samurdhi and the maintenance of armed forces.
The Minister said that though money printing caused inflation it could not be totally stopped.
News
X-Press Pearl disaster fuels global call to classify plastic pellets as hazardous
Nearly five years after the catastrophic sinking of the X-Press Pearl, off Sri Lanka’s western coast, the environmental scars remain visible — from contaminated beaches to disrupted fisheries. Now, that tragedy has become a rallying point for an international coalition of scientists, demanding urgent reforms to global maritime law.
A group of leading researchers and environmental experts is calling on the International Maritime Organisation (IMO) to formally recognise plastic pellets — commonly known as nurdles — as hazardous to the marine environment. They argue that existing international shipping regulations fail to adequately address the environmental devastation caused by pellet spills.
Their appeal comes through a newly accepted scientific commentary, published in Cambridge Prisms: Plastics, consolidating decades of research on the impacts of plastic pellet pollution.
Plastic pellets are small, lentil-sized (2–5 mm) particles made from virgin or recycled plastic and used to manufacture a vast range of plastic
products. Scientists say that spills occur frequently during handling and transport, both on land and at sea. Once released into the ocean, pellets persist for decades, spreading across vast distances and entering marine food chains.
Dr. Jennifer Lavers, who studies pollutants in seabirds, warned that the scale of plastic ingestion has reached crisis levels.
“Today the volumes of plastic pellets entering the marine environment are enough to ‘feed’ millions of young seabirds,” she said. “In some areas we are seeing nearly a 100% rate of plastic ingestion, with pellets being particularly problematic.”
Beyond physical harm such as digestive blockages in wildlife, pellets also pose chemical threats. According to Dr. Sinja Rist of DTU Aqua, they are far from inert materials.
“Pellets are persistent, widely dispersed, readily ingested by wildlife, and capable of transporting hazardous chemicals,” she explained, noting that they can absorb and release toxic substances across oceans.
Sri Lanka’s experience with the X-Press Pearl disaster, in 2021, highlighted these dangers on an unprecedented scale. The burning container ship released vast quantities of chemicals and billions of plastic pellets into the sea, causing widespread marine contamination and severe economic losses to coastal communities.
Hemantha Withanage, Chairperson of the Centre for Environmental Justice in Sri Lanka, said the disaster exposed major gaps in international maritime regulation.
“After studying the aftermath of the X-Press Pearl disaster, it is impossible to argue that plastic pellets are harmless cargo,” Withanage stressed. “The impacts in Sri Lanka were immediate, widespread, and long-lasting. Stronger international regulation is essential to prevent this from happening again.”
Under the International Convention for the Prevention of Pollution from Ships (MARPOL), the intentional discharge of plastics is banned. However, scientists argue that current rules are inadequate when it comes to preventing or responding to accidental spills, especially those involving container ships.
The researchers are urging the IMO to assign plastic pellets a specific United Nations classification number. Such recognition would formally acknowledge their environmental hazard potential and trigger stricter requirements for packaging, labelling, and emergency notification during shipping.
Dr. Therese Karlsson, lead author of the commentary and Science Advisor for the IPEN, said the scientific case is clear.
“There are decades of studies highlighting threats from plastic pellets released into the oceans, including risks to marine animals and the food chain,” she said. “Plastics contain thousands of chemicals, many known to cause harm to the environment and human health. It is past time for global regulations to protect our oceans.”
The European Union has recently introduced measures aimed at preventing pellet losses throughout the supply chain, and in 2021 the IMO committed to addressing pellet pollution as part of broader efforts to reduce marine plastic litter. Yet experts warn that without binding global action, pellet spills will continue.
For Sri Lanka, still recovering from one of the worst maritime environmental disasters in its history, the international call carries particular urgency.
Scientists say the message from the island nation’s experience is unmistakable: plastic pellets must no longer be treated as ordinary cargo, but as hazardous materials demanding strict global oversight.
By Ifham Nizam
News
Foreign Minister Herath decries deadlock in global disarmament
Minister of Foreign Affairs, Vijitha Herath, has underscored the urgent global need for enduring peace, security, and strengthened multilateral cooperation, warning that rising geopolitical tensions have created deadlocks in global disarmament efforts and posed serious challenges to international humanitarian law.
The Minister said so while addressing the High-Level Segment of the Conference on Disarmament (CD) in Geneva on Monday (23 Feb), reaffirming Sri Lanka’s firm commitment to global disarmament and multilateral cooperation.
Minister Herath said that safeguarding the future of humanity must be treated as a paramount priority, stressing that trust and mutual respect are essential foundations for effective decision-making in multilateral forums. He reaffirmed that Sri Lanka remains committed to ensuring a secure and stable world for future generations.
Highlighting Sri Lanka’s longstanding role in nuclear disarmament, he recalled the country’s contribution to the 1964 Non-Aligned Movement Summit in Cairo, which called for the establishment of nuclear-free zones. He reiterated that Sri Lanka continues to strongly support such initiatives, particularly in the Middle East, and emphasiSed that total elimination and non-proliferation remain the only guarantees against the use of nuclear weapons.
Sri Lanka also urged that non-nuclear-weapon states must receive unconditional, non-discriminatory, legally binding security assurances, achievable through the work of the Conference on Disarmament.
On humanitarian demining, Minister Herath noted that Sri Lanka remains an active partner in that effort and currently serves as a senior member of the victim assistance committee of the Anti-Personnel Mine Ban Convention. He further reaffirmed Sri Lanka’s continued commitment to the Cluster Munitions Convention, which the country presided over in 2019.
Recognising the rapidly evolving threat landscape, the Minister warned of the impact of emerging technologies that have already reshaped the global disarmament architecture while putting international humanitarian law at significant risk. In this context, he said Sri Lanka has been advocating for the early start of negotiations on a legally binding instrument to prohibit lethal autonomous weapon systems.
He also addressed growing threats to outer space security, stressing that Sri Lanka, long a supporter of disarmament in outer space, continues to back negotiations on a legally binding instrument to prevent an arms race beyond Earth.
Minister Herath concluded by affirming Sri Lanka’s readiness to work with all nations to ensure global efforts toward a safer world are accelerated and achieved at the earliest opportunity.
News
CoPF orders officials to establish legal framework for Rs. 200 for estate workers daily attendance allowance
The Parliamentary Committee on Public Finance has directed officials to establish a proper legal framework for the Rs. 200 daily attendance allowance provided by the Government to estate workers.
During the Committee meeting on February 17, 2026, chaired by MP Dr. Harsha de Silva, members emphasised that while there is no objection to increasing estate worker wages, the current payment mechanism lacks a formal legal basis. The allowance is being distributed under a Memorandum of Understanding (MoU) with private plantation companies without gazette notification, leaving the arrangement vulnerable to termination and excluding contributions to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF), according to parliament sources.
Officials noted that the MoU with plantation companies was valid for three years, and thereafter a policy decision would be required to continue the payments. The Committee stressed that public funds should not be used to pay salaries in private institutions without proper financial discipline, despite the allowance being approved under the 2026 Budget as a “development subsidy.” The Deputy Secretary to the Treasury suggested the payment would be more appropriately classified as a “production incentive,” though existing payments and MoUs did not specify such requirements.
The Committee also reviewed disaster relief efforts for those affected by Cyclone Ditwah. Officials reported that approximately Rs. 24.4 billion had been disbursed under various relief programs, including allowances for house cleaning, household purchases, and school assistance. Delays in housing reconstruction and rental support were attributed to damage assessments and land identification, with Committee members urging faster delivery of housing aid.
Officials from the National Insurance Trust Fund (NITF) highlighted reinsurance claims of around Rs. 11 billion following Cyclone Ditwah, noting that although NITF had not reinsured its exposure internationally since 2023, it was capable of settling existing claims.
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