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SJB MP presses for IMF intervention
‘… restructuring debt, fiscal discipline urgently needed, we’ll implement it when we get to office’
By Shamindra Ferdinando
The Samagi Jana Balavegaya (SJB) MP Dr. Harsha de Silva insists Sri Lanka is left with no alternative but to seek immediate assistance of the IMF to tackle what he calls an unprecedented debt crisis. “The SJB is in general agreement with my view that outstanding external debt should be restructured, “Dr de Silva said.
The Island sought the SJB MP’s views against the backdrop of State Minister of Finance, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal ruling out IMF’s intervention. The former Governor of the Central Bank (2006-2015) said so in response to Dr. de Silva’s original call for the IMF’s assistance.
Asked whether he still believed the government should ask for the IMF’s intervention, Dr. de Silva said that the IMF in itself was not the answer. Stressing the need for fiscal discipline, the former UNP minister said Sri Lanka needed the IMF assistance primarily for two reasons as Sri Lanka could not address the current financial crunch under its own steam.
MP de Silva said that IMF’s assistance was needed to facilitate restructuring of debt. Referring to President Gotabaya Rajapaksa’s recent admission that his government was faced with the challenge of settling loans amounting to USD 4 bn annually, Dr. de Silva said that the IMF could provide Sri Lanka the platform to negotiate with hundreds of International Sovereign Bond (ISB) investors to reach a consensus.
Asked to explain, the MP said that if the government initiated the process, an understanding could be reached on postponement of interest and capital payment by 36 to 48 months. Delay on Sri Lanka’s part to take action to address the overwhelming threat though politically such measures seemed disadvantageous could be catastrophic, the SJB MP said.
Dr. de silva urged the SLPP MPs to peruse the statement issued by the President’s Office on June 13 in the wake of the SLPP General Secretary attorney-at-law Sagara Kariyawasam demanding Energy Minister Udaya Gammanpila’s resignation over the fuel price hike. The President’s Office admitted the unbearable burden on the banking sector by staggering borrowings run up by CPC and CEB amounting to Rs 737 bn.
Dr. de Silva said now that the government had revealed the true status of the economy, it should go the whole hog to address the issue. “These ISB agreements are mainly in New York jurisdiction and there are clauses that need 3/4 of investors (by value) having to agree. So it’s not easy. We need to arrive at an acceptable debt sustainability plan and to do that the IMF is needed. Once we do that, confidence in Sri Lanka’s ability to manage our debt will return and we can participate in the international financial markets again. When we have space without having to make large debt payments in the next few years we can undertake essential economic reforms without which we cannot move forward.”
Asked whether he had been able to convince the SJB to go with his views on restoring financial confidence, Dr. de Silva emphasised that the SJB was in agreement with his stance that Sri Lanka had to restructure its debt. “Look at what is happening today. Look at the indicators? How much is the USD? Now they want to restrict even more imports. We are going back to 1973—77 period. We have a plan to get Sri Lanka back on its feet by integrating with the world. That is how we will strengthen the domestic economy. Not by hoodwinking the people. We will implement it when we form a government.”
Responding to queries on the need for urgent action and consensus on the crisis, Dr. de Silva said that remedial measures should be undertaken immediately. The MP emphasised that the issue at hand should not be blamed on rampaging Covid-19 pandemic. Declaring that the trouble had been brewing for years, the MP said that the country had been consuming much more than it had been producing.
The MP said: “Our savings have been low. Our investments have been unproductive. Our subsidies have been wasted. Our exports have been falling as a percentage of global shares. The inward looking policies of this government that once failed in the 1970s have caused rapid deterioration. The unwise steps starting from the massive tax give away in December 2019 long before Corona only exacerbated the problem.”
National People’s Power MP Dr. Harini Amarasuriya said now that State Minister Cabraal on behalf of the government had ruled out IMF intervention, he should explain how the incumbent administration was going to tackle the problem. MP Amarasuriya emphasised that the public had a right to know the conditions, modalities as well as those involved if the IMF was not. The MP alleged decades of waste, corruption, irregularities, negligence and mismanagement had weakened the national economy and the country was now in a perilous state.
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News
MEPA to crack down on marine polluters
… Warns would-be polluters of criminal prosecution, hefty fines and even blacklisting
The Marine Environment Protection Authority (MEPA) has warned that ship owners, operators and local entities responsible for marine pollution will face criminal prosecution, heavy financial penalties and possible blacklisting, MEPA Chairman Samantha Gunasekera said yesterday.
Gunasekera told The Island that Sri Lanka would no longer tolerate negligence and regulatory breaches that threaten the country’s marine ecosystems, coastal livelihoods and national economy.
“Any party that pollutes our seas—whether foreign vessels or local operators—should be prepared to face the full force of the law,” Gunasekera said. “There will be no room for excuses, delays or backdoor negotiations when marine pollution is involved.”
He said MEPA has intensified surveillance of major shipping routes, ports and environmentally sensitive zones amid rising maritime traffic through Sri Lankan waters, which remain among the busiest in the Indian Ocean.
by Ifham Nizam
News
SC delegation, headed by CJ Surasena, observes Indian Supreme Court in action
A 10-member delegation from Sri Lanka’s Supreme Court, headed by Chief Justice P. Padman Surasena, departed to New Delhi on the 11th of December, 2025, for an official visit to the Supreme Court of India as part of the ongoing official visit by the delegation to India.
The group was accorded a ceremonial welcome in the Court’s main hall, led by the Chief Justice of India (CJI) Surya Kant. CJI Kant told the assembled Judges that “the Indian judiciary was honoured to host” their Sri Lankan counterparts, expressing hope that the visit would be “meaningful and very constructive” and underscoring the “close emotional bonds” between the two countries.
The focal point of the programme was a special sitting of the Supreme Court. Chief Justice Surasena joined CJI Kant and Justice Joymalya Bagchi on the bench, presiding over the Court as a guest Justice. He was accompanied by nine other Supreme Court justices from Sri Lanka, who took seats in the well of CJI Kant’s courtroom to observe the day’s proceedings.
Supreme Court Bar Association President Vikas Singh formally greeted the delegation and praised Justice Surasena’s reformist efforts. Singh recalled the Sri Lankan Chief Justice’s own maxim, “If you want something you have never had, then you have got to do something you have never done”, highlighting the bold changes Surasena had introduced to modernise Sri Lanka’s Court system. Singh noted that these initiatives, particularly court digitization, were aimed at eradicating “the persisting problems of law delays” and streamlining case backlogs.
The Sri Lankan Judges spent the morning observing live Supreme Court proceedings in CJI Kant’s courtroom. This first-hand exposure to Indian court operations formed a key part of the programme’s judicial engagement. During the hour-long session, the visiting justices witnessed a range of cases on the Supreme Court’s roster, with Justice Surasena and the delegation following arguments from the front. The experience was designed to be immersive and following the hearing the Sri Lankan Judges were briefed on India’s own initiatives towards a digitalised court system, e-filing and case management systems.
The official programme then shifted to capacity-building and information exchange. In the early afternoon, Indian Supreme Court officials gave the Sri Lankan delegation detailed briefings on India’s technological initiatives. Court registrars demonstrated the e-filing system and other e-initiatives implemented by the Supreme Court of India. Additional presentations outlined the Court’s new case management systems and administrative reforms. These sessions highlighted how digital tools and better case-listing procedures have been used in India to increase efficiency. The Sri Lankan judges asked questions about India’s experience with electronic court records and the integration of technology in daily judicial work, reflecting their own interest in similar reforms back home.
The visit underscored the growing collaboration between the Indian and Sri Lankan judiciaries. Throughout the proceedings, both sides emphasised their shared legal traditions and mutual respect. As Chief Justice Surasena noted during the sitting, India is Sri Lanka’s “closest neighbour,” and historic links, even dating back to ancient epics, form the backdrop for today’s judicial dialogue. CJI Kant remarked that having the chief justices of two vibrant democracies together on the bench was a “significant moment” for the rule of law.
The Sri Lankan delegation continued its programme in Delhi on 12 December with a visit to the Delhi High Court and its International Arbitration and Mediation Centres. The exchange visit is expected to deepen judicial cooperation and provide practical insights for both courts. Officials on both sides say the engagement aimed at sharing best practices in court administration, reinforce legal ties and support ongoing reforms aimed at reducing case backlogs and delays.
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