News
SL expects IMF bailout by end of next month
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.
News
Sallay’s wife further complains to HRC over continuing violation of husband’s FRs by CID
The wife of retired Major General Suresh Sallay has lodged a further complaint with the Human Rights Commission of Sri Lanka (HRCSL), alleging that her husband’s fundamental rights continue to be violated as Criminal Investigation Department (CID) officers prevent him from having confidential consultations with his lawyer while he is under detention at the National Hospital.
In a letter addressed to the HRCSL Chairman on Thursday, Mrs. S.B.M.S.B. Sallay has said the latest complaint was filed in relation to an earlier complaint concerning the detention and treatment of her husband.
Full text of the letter: I, Mrs. S.B.M.S.B. Sallay, respectfully write to lodge this further complaint in relation to my earlier complaint bearing reference H RC-HO-1 103-26, concerning the detention and treatment of my husband, Retired Major General Suresh Sallay.
I wish to bring to the attention of the Commission a further serious violation of his fundamental rights that occurred on 08 July 2026 during a consultation between my husband and his Attorney-at-Law, Mr. Asith Siriwardena, while my husband remains under detention and is receiving treatment at the National Hospital.
I am informed by his Counsel that he is presently permitted to consult with my husband only once a week for a period of approximately twenty minutes. During the consultation held on 08 July 2026, officers of the Criminal Investigation Department (CID) stationed at the Cardiac Coronary Care Unit of the National Hospital informed Counsel that they had received instructions from higher authorities that my husband should not be permitted to meet with his
legal counsel in private. Consequently, the officers remained present throughout the consultation and refused to permit a confidential lawyer-client meeting.
This conduct constitutes a grave infringement of my husband’s fundamental right to communicate privately and confidentially with his legal counsel. Confidential communication between an accused or detainee and his lawyer is an indispensable safeguard of the right to legal representation, the right to prepare his defence, and the right to a fair trial. The denial of confidential legal consultations undermines these fundamental protections guaranteed under the Constitution of the Democratic Socialist Republic of Sri Lanka and the applicable provisions governing persons detained under the Prevention of Terrorism Act.
The confidentiality of communications between a lawyer and client is also a well-recognized principle under international human rights law and forms an essential safeguard against arbitrary detention, coercion, and unfair legal proceedings.
In view of the foregoing, I respectfully request the Human Rights Commission of Sri Lanka to urgently intervene and take all necessary steps within its statutory mandate to:
1. Ensure that my husband is afforded immediate and unrestricted confidential access to his legal counsel without the presence or supervision of law enforcement officers;
2. Inquire into the instructions allegedly issued by higher authorities requiring CID officers to remain present during lawyer-client consultations;
3. Direct the relevant authorities to cease any practice that interferes with confidential legal consultations; and
4. Take such further action as the Commission considers appropriate to safeguard my husband’s constitutional and human rights.
This complaint is made as a further complaint to Complaint No. H RC-HO-1103-26, and I respectfully request that it be placed on the same file and considered together with my previous complaints.
I respectfully seek the Commission’s urgent intervention in this matter.
News
SC upholds Commercial HC ruling that Weerawansa violated intellectual property rights of JVP
The Supreme Court yesterday (9) upheld a Colombo Commercial High Court order directing former Minister Wimal Weerawansa to pay Rs. 1 million in damages to Janatha Vimukthi Peramuna (JVP) General Secretary Tilvin Silva for violating intellectual property rights.
A three-member Supreme Court bench dismissed in its entirety an appeal filed by Weerawansa challenging the earlier Commercial High Court ruling.
The case was instituted by Silva, who alleged that Weerawansa had violated provisions of the Intellectual Property Act by publishing his book “Neththa Wenuwata Aththa” (“Truth Instead of Lies”), which contained the JVP’s political ideology and official party documents without authorisation.
The Supreme Court also affirmed the order restraining the publication and distribution of the book in its existing form. However, the court ruled that the book could be republished if the 60-page section identified as infringing intellectual property rights was removed.
News
Communist Party regrets failure of Justice Minister to visit a single prison
The Communist Party of Sri Lanka (CPSL) has blamed what it describes as a systemic collapse of the country’s prison administration and the government’s adherence to IMF-backed austerity measures for the recent violence at Negombo Prison, calling for an independent investigation and sweeping reforms to the correctional system.
In a statement issued by its General Secretary, Dr. G. Weerasinghe, the CPSL extended condolences to the families of those killed during the unrest at Negombo Prison and subsequent incidents at other prisons, describing the violence as “not merely an administrative failure within a single institution but a profound systemic breakdown in Sri Lanka’s criminal justice and correctional framework.”
Full text of the statement: The Communist Party of Sri Lanka (CPSL) extends its condolences to the families of the people who lost their lives during the recent grave events that unfolded at Negombo Prison and subsequently at other prisons. It also expresses its deep concern and firm condemnation regarding the incidents, which represent not merely an administrative failure within a single institution but a profound systemic breakdown in Sri Lanka’s criminal justice and correctional framework.
The CPSL reiterates that prisons are institutions of rehabilitation, not arenas of violence. The Party has long maintained that Sri Lanka must transition from a punitive model to a restorative justice system, to one that rehabilitates offenders and reintegrates them as useful members of society. The lives of prisoners are of value to the nation, and the greatest effort should always be taken to preserve life.
It is therefore significant that President Anura Kumara Dissanayake himself stated that the loss of even one prisoner’s life is unacceptable. Yet the public was shocked by footage of an STF officer firing apparently indiscriminately through the Judas Window of the main gate of Negombo Prison. This raises serious questions: Why were non-lethal alternatives, including drone-based surveillance and assessment, not deployed? Why did command decisions fail at the most basic level?
The CPSL also notes with deep dismay that the honourable Minister of Justice and National Integration has not visited a single one of the prisons that come under his purview, since his appointment.
The outbreak at Negombo Prison is a symptom of a wider malaise. These include:
1. Extreme Overcrowding: Negombo Prison, designed for 650–680 inmates, was forced to house 2,600. Prisoners reported severe shortages of toilets, with up to 60 inmates queuing for a single facility. Nationally, the system built for 10,000–11,000 inmates now holds 39,000–41,000. This level of overcrowding is not mismanagement, it is institutional collapse.
2. Medical Neglect: Prisoners have repeatedly complained of insufficient access to medication. Amid ongoing epidemics, including Dengue Fever, inmates fear for their lives. A correctional system that cannot provide basic medical care is failing in its most fundamental duty.
3. Severe Undermanning: The prison service faces a shortage of 1,500 personnel, worsened by the ongoing recruitment freeze. Officers are overworked, underpaid, and insufficiently motivated due to disgracefully low public sector salaries.
The CPSL holds the Government fully responsible for this disaster. Its willingness to accommodate the draconian austerity conditions of the IMF has crippled recruitment across the public service, including the prison system. These externally imposed constraints have prevented the Department of Prisons from fulfilling its basic obligations to inmates and staff.
This tragedy is yet another proof of the Government’s incompetence and inability to govern. A regime that cannot protect those in its custody cannot claim moral or administrative legitimacy.
The CPSL calls upon the Government, Ministry of Justice, and Department of Prisons to:
1. Conduct an independent, transparent investigation into the Negombo Prison incident, with findings released to the public.
2. Hold accountable all officials whose actions or negligence contributed to the loss of life.
3. Provide immediate medical care, protection, and humane treatment to all inmates.
4. Implement urgent structural reforms to address overcrowding, understaffing, and medical shortages.
5. Transition toward a restorative justice model, reducing recidivism and strengthening social reintegration.
6. Reject externally imposed austerity measures that undermine national sovereignty and public safety.
The CPSL urges calm among the public and calls upon all stakeholders, including prison staff, families, civil society, and human rights organisations, to cooperate with investigative processes. The Party reaffirms its commitment to defending human dignity and ensuring that Sri Lanka’s institutions serve the people with justice, compassion, and accountability.
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