News
SL to receive first tranche of new IMF facility soon
Under targeted reforms Sri Lanka will be first country in Asia to undergo governance diagnostic exercise.
Sri Lanka will receive the first tranche of the IMF Extended Fund Facility (EFF) within the next two days, IMF Senior Mission Chief for Sri Lanka,Peter Breuer told a press conference yesterday.
He said that Sri Lanka would immediately receive an initial disbursement of about 330 million dollars from the EFF arrangement, which is expected to catalyze new external financing including from the Asian Development Bank and the World Bank.
Given below is his statement in full: “The reform programme supported under the EFF arrangement is built on strong policy measures and prioritises: (i) an ambitious revenue-based fiscal consolidation, accompanied by stronger social safety nets, fiscal institutional reforms, and cost-recovery based energy pricing to ensure the state’s ability to support all its essential expenditures; (ii) restoration of public debt sustainability, including through a debt restructuring to ensure stable financing of the government’s operations; (iii) a multi-pronged strategy to restore price stability and rebuild reserves under greater exchange rate flexibility in order to alleviate the burden of inflation, particularly on the poor, to foster an environment of investment and growth, and to ensure Sri Lanka’s ability to purchase essential goods from abroad; (iv) policies to safeguard financial sector stability to ensure that the financial sector can play its key role in supporting economic growth; and (v) structural reforms to address corruption vulnerabilities and enhance growth.
“Commendably, Sri Lanka has already started implementing these challenging policy actions. It is now essential to continue the reform momentum under strong ownership by the authorities and the Sri Lankan people more broadly.
“The economic impact of the reforms on the poor and vulnerable needs to be mitigated with appropriate measures. In this regard, we welcome the authorities’ firm commitment to strengthen social safety nets, including through a minimum spending floor, well-targeted spending through a new Social Registry, and establishment of objective eligibility criteria. Tax reforms under the programme are designed to be progressive, that is, ensuring greater contributions from high-income earners. Efforts to increase tax revenues should be pursued in a growth-friendly manner while protecting the poor and most vulnerable.
“Sri Lanka’s public debt, at 128 percent of GDP as of end-2022, is unsustainable. The country is in arrears to all its external creditors. IMF Board approval of assistance to Sri Lanka required assurances from 2 official bilateral creditors that they will provide debt relief and/or financing to restore debt sustainability consistent with the program, as well as an assessment that the authorities are making good faith efforts to reach a collaborative agreement with private creditors.1 These requirements were met ahead of the Board meeting.
“It is now important for the Sri Lankan authorities and creditors to closely coordinate and make swift progress towards a debt treatment that restores debt sustainability under the EFF-supported programme. The President’s recent open letter to official bilateral creditors includes commitments to transparency and comparability of treatment for all external creditors, which should help facilitate this process. IMF staff will continue to assist the authorities with creditor coordination in line with the IMF’s policies.
Finally, we emphasise the importance of anti-corruption and governance reforms as a central pillar of the EFF-supported programme —they are indispensable to ensure the hard-won gains from the reforms benefit the Sri Lankan people.
The authorities have committed to fundamentally improve public financial management and strengthen the anti-corruption legal framework in line with the United Nations Convention against Corruption. In addition, the IMF is conducting an in-depth governance diagnostic exercise, which will assess corruption and governance vulnerabilities in Sri Lanka and provide prioritized and sequenced recommendations. Sri Lanka will be the first country in Asia to undergo a governance diagnostic exercise by the IMF. We look forward to further engagement and collaboration with stakeholders and civil society organisations on this critical reform area.”
News
Sri Lanka cricket finances ‘greater than feared’: interim chief
(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.
News
Police roll out countrywide security plan for Vesak Week
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.
News
India, Lanka boost air power ties as IAF Chief visits Colombo
(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.
-
Features4 days agoOctopus, Leech, and Snake: How Sri Lanka’s banks feast while the nation starves
-
News3 days agoSteps underway to safeguard Sri Lanka’s maritime heritage
-
Opinion3 days agoMurder of Ehelepola family, Bogambara Wewa and Sightings of Wangediya
-
Sports4 days agoSri Lanka women’s volleyball team ready for Central Asian challenge
-
Editorial3 days agoA play without its protagonist
-
Midweek Review4 days agoOverall SLPP failures stressed in new Aragalaya narrative
-
Opinion2 days agoThe need to reform Buddhist ecclesiastical order
-
Latest News5 days agoAt least 100 dead in Ebola outbreak in DR Congo, official says
