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SL expects IMF bailout by end of next month

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By Sanath Nanayakkare

A staff-level agreement with the International Monetary Fund (IMF) and a programme for a bailout package for Sri Lanka would be finalised by the end of July 2022, Prime Minister Ranil Wickramasinghe told Parliament yesterday.

“The only safe option before us now is to hold talks with the IMF and, in fact, it’s our only option. We must take this path,” he said, delivering a special statement in Parliament.

From November 2019, Sri Lanka maintained a consistent hard line against seeking assistance from the IMF, causing historical damage to its economy.

Later, following a request by Sri Lanka for the IMF to intervene, the first in-person talks with the global lender for a bailout package commenced in Colombo on 20 June, they will continue over 10 days.

According to the Prime Minister, Sri Lanka has concluded the initial discussions with the IMF delegation and exchanged ideas on various sectors such as public finance, debt sustainability, stability of the banking sector, social security network, etc.

Referring to debt restructuring and honouring sovereign debt repayments consequent to a preemptive default by the country, Wickremesinghe said the framework for this will also be finalised by the end of July following consultations with financial and legal advisory firms Lazard Ltd. and Clifford Chance LLP.

“Representatives of Lazard and Clifford Chance are now in Sri Lanka to assist us in our debt restructuring. The formulation of this framework which is a key requirement of the IMF is now underway,” he said.

Sri Lanka hired the two firms in May 2022 to serve as financial and legal advisors on debt restructuring as the country sought a bailout from the IMF.

“Three high-ranking officials of the Indian government are scheduled to arrive in Sri Lanka today for discussions regarding the loans offered to the country in the future. We have sought more loans from India, but India cannot continue to lend us. We have to formulate a system to repay our loans,” he said.

“A team of representatives from the U.S. Department of the Treasury is also expected to arrive in Sri Lanka on Monday. We arranged for the arrival of these three teams in Sri Lanka so that we can conduct parallel discussions with them in an effective manner. It will intensify our efforts in expediting the recovery programme,” he said.

Referring to ongoing fuel crisis, the PM said “No country or organisation in the world is willing to provide fuel to Sri Lanka due to the country risk as the Ceylon Petroleum Corporation (CPC) has an outstanding debt of USD 700 million. Some suppliers are even reluctant to provide fuel for cash.”

“Sri Lanka is currently in need of USD 550 million to meet its monthly fuel needs. In the face of foreign exchange crisis, we are experiencing difficulties in securing required funds for this purpose. So, we will be importing maximum possible fuel stocks based on our dollar income. Resolving the fuel shortages, therefore, will take more time. I urge everyone to sparingly use fuel and reduce consumption until our reserves are at healthy levels.”

“The government has taken steps to import 100,000 MT of LP gas utilising a World Bank loan of USD 70 million and USD 20 million of the country’s own reserves. We will be able to eliminate the gas shortage once we have received these LPG stocks,” he said.

The PM also mentioned about the government’s plans to organise a financial aid conference led by India, Japan and China – the main lending countries of Sri Lanka – to seek their support at this critical hour.

“Through this conference, we hope to arrive at a general consensus on lending and repayment processes because these countries have different methodologies in this regard. If we receive the IMF seal of approval, the world will once again begin to trust Sri Lanka. An approval from the IMF will help us secure low-interest loans from other countries as well. We are currently holding discussions with the World Bank, Asian Development Bank, the United States, other friendly nations and several heads of state to secure interim short-term loans until we receive funding from the IMF. We will be able to lay the foundation to ensure economic stability following the successful completion of these undertakings. However, these by no means will be the end of our recovery effort. In fact, it will be the beginning of our journey which would firmly require us to build a more export-oriented economy with fiscal discipline in place,” he said.



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Sri Lanka cricket finances ‘greater than feared’: interim chief

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Eran Wickramaratne gestures during a press conference at the Sri Lanka Cricket Board office in Colombo on May 21 (Ishara S. KODIKARA/AFP)

(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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Police roll out countrywide security plan for Vesak Week

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The Police have announced a special islandwide security programme for Vesak Week to ensure the public can observe religious activities in a peaceful and secure environment, free from fear or inconvenience.

The Police Department said the measures have been introduced in view of heightened religious observances across the country during the Vesak season, with Buddhists worldwide preparing to mark Vesak Full Moon Poya Day on 30 May 2026.

Authorities said large crowds are expected at major Buddhist sites, including ancient places of worship, while Vesak lantern displays, pandals and Bhakthi Gee programmes will be held across the island.

Under the special security plan, the Inspector General of Police has directed all police stations to take steps to minimise traffic congestion and ensure public convenience in areas with high footfall.

The Police Department said enhanced day and night mobile patrols will be deployed across all divisions, alongside special security operations aimed at safeguarding public safety and protecting property during the festive period.

Authorities also warned that strict legal action will be taken against individuals or groups whose behaviour is deemed to undermine the dignity and sanctity of Vesak or cause inconvenience to devotees.

In a set of public guidelines issued for the season, the Police Department urged organisers of Dansal programmes to comply with health and safety standards and implement proper crowd management measures to prevent congestion.

The public has also been advised to refrain from behaviour deemed inappropriate for the religious season, avoid excessive noise, and ensure responsible use of loudspeakers with prior approval.

Devotees have been requested to abstain from alcohol and narcotic substances during Vesak activities, while being urged to remain vigilant against theft in crowded areas and ensure the safety of children and elderly persons.

The Police Department further encouraged the public to report emergencies via hotlines 118 and 119, and to submit relevant video footage of traffic violations or environmental offences through designated WhatsApp channels for legal action.

Authorities said the measures are aimed at ensuring that Vesak is observed in a spirit of peace, devotion and public harmony across the country.

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India, Lanka boost air power ties as IAF Chief visits Colombo

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(ANI) May 22:Marking a critical milestone in regional security cooperation, India’s Chief of the Air Staff, Air Chief Marshal AP Singh, addressed the National Defence College (NDC) in Sri Lanka during his three-day visit to the island nation.

Speaking on the strategic imperative of “Air Power in the 21st Century,” the Air Chief Marshal highlighted the evolving dynamics of modern warfare and the growing necessity of robust bilateral military partnerships in the Indian Ocean Region.

The high-level interaction served as a central fixture of his three-day official visit to the island nation, aimed at anchoring the defence ties between the two neighbours.

Sharing the details in a post on X, the Indian High Commission in Sri Lanka said that the Air Chief also interacted with the Commandant and the National Defence College course participants.

The Chief of the Air Staff Air Chief Marshal A P Singh visited the National Defence College, Sri Lanka on 20 May 26. He spoke on the topic ‘Air power in the 21st century’ and interacted with the Commandant and NDC course participants

Earlier on Wednesday, the High Commission shared that the Air Chief was received with a Guard of Honour at SLAF headquarters prior to formal meetings on Tuesday, prior to his call on with the Commander of SLAF.

“He also called on the Deputy Minister of Defence Maj Gen Aruna Jayasekara (Retd), and the Secretary Defence, AVM Sampath Thuyacontha (Retd). ACM A P Singh paid his respects to the IPKF martyrs by laying a wreath at the monument in Bataramulla”, the post added.

Air Chief AP Singh had arrived in Sri Lanka on an official visit from 19-21 May 26.

India and Sri Lanka have a longstanding defence partnership.

Earlier in April, the two countries reaffirmed their growing maritime partnership through the fourth edition of the bilateral diving exercise, IN-SLN DIVEX 2026, conducted at Colombo from April 21-28.

The exercise witnessed participation of the Indian Navy’s Diving Support and Submarine Rescue Vessel, INS Nireekshak, alongside diving teams from both navies- underscoring enhanced operational coordination and professional synergy, the Indian Navy said in a statement.

As India continues to deepen its military engagements with friendly nations, the multilateral military Exercise PRAGATI 2026 commenced on Wednesday at Umroi Military Station, Meghalaya, with the participation of 12 friendly nations, namely Bhutan, Cambodia, Indonesia, Laos, Malaysia, Maldives, Myanmar, Nepal, Philippines, Seychelles, Sri Lanka and Vietnam.

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