News

Time for home-grown solutions over; Seek international support immediately – Dr. de Silva

Published

4 years ago

2022/02/23

SJB MP Dr. Harsha de Silva told a media briefing on Monday that the country was in complete disarray. Fuel was rationed, there were daily power cuts, shortage of dollars was preventing import of essentials, including medicine, and food would be rationed next.

“Economic collapse is imminent if we continue to go this way and it is almost similar to a broken car rumbling along before it completely comes to a halt,” he said.

“The government has no idea what they are doing, on one side Finance Minister Basil Rajapaksa states that he is ready to engage with the creditors but on the other hand, the Governor of the Central Bank reiterates to international media that there is no need to engage with the IMF. Independent economists and the opposition have repeatedly stated that home-grown solutions will not fix this and we need to seek international support immediately. As far back as November 2020, in my response to the budget speech, I stated that we need to engage with the IMF, in order to restructure our debt due to artificially created problems. Beginning with the tax cuts, that resulted in almost LKR 600 bn losses, followed by the ban of chemical fertilzer, exacerbated our economic situation. In the 2019 December Article 4 report by the IMF, they highlighted that we had substantially recovered from the crash due to the 2018 constitutional Coup as well as the Easter Attacks in 2019, therefore our debt was still sustainable. However, they also stated that if drastic changes were made to our government policies, our debt would be unsustainable, as it is today.

“At this juncture, even the IMF alone will not be able to solve this problem. There are three ways in which one can look at this type of crisis. First, one being if Sri Lanka’s debt was sustainable, we would not have to restructure our debt. We could have chosen to stabilize our macro-economy by bringing in crucial economic reforms while paying our debt. Secondly, in the case that our debt sustainability was uncertain, we could have opted for a light-restructuring or short-term reprofiling, at which we would put off our interest payments for a short time. In the third scenario, which I believe we are currently in, our debt would be deemed unsustainable, thus we will not be able to reprofile and would need to make drastic reforms as well as initiate a debt-restructuring programme with our creditors. In this scenario, there are three types of creditors that we would need to engage with including; senior creditors (World Bank, ADB, IMF),

bilateral creditors (China, India, Japan, Paris Club) and private creditors (Insurance funds, hedge funds, mutual funds, etc). We will not be able to initiate any debt-restructuring programme with bilateral and private creditors without engaging with the IMF first and gaining their confidence.

The government’s reluctance to engage with the IMF is an ideological difference. Statements being made that the IMF will impose rules and regulations are unfounded. They will only agree or deny the working plan submitted by the government. If we don’t agree with the terms they propose, we should be able to present a better plan. It is almost similar to an individual seeking a loan from a bank. The bank manager will not give you the plan to pay off your loan, instead, they will review your finances and deem its feasibility. Moreover, the government’s reluctance also stems from the fact that they know the IMF will not approve their political programme for local council elections. Initially, they tried to print money to fund their political activities, however, due to high inflation rates they are constrained. Subsequently, they decided to tax the EPF and the ETF to pump LKR 100 bn to their local councillors but we were able to block that initiative. If they have a little bit of decency and sympathy for the people of this country, they will abandon this electioneering programme and most importantly abandon corruption to save the little bit of money we have left!

“On the 25 February, the IMF will present its analysis of the Sri Lankan economy in Washington, DC. According to publicly available stats and figures of the government, we believe that our debt is unsustainable and thus no home-grown solution nor the tourists queuing up to get into bars in the South will be able to solve this. The shortage of dollars has resulted in a shortage of oil, which has translated into a power shortage. We cannot go on much longer, as these problems have also led to instability within the local banking system. A certain government minister has stated that we should establish a ‘Thel Potha’ similar to the ‘Hal Potha’, where are we heading without any sustainable solutions? We urge the government to present the IMF Article 4 report to Parliament for us to have a constructive debate and come to a working plan, regardless of political affiliations. Moreover, GSP+ may be in jeopardy as well due to actions taken by this government. The vital export sector is the only thing that is holding us above water. We have to go beyond political biases and find a solution to this economic mismanagement immediately.”

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Our goal is to build a “Thriving Nation” where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity – PM

Published

6 hours ago

2026/03/8

Priyan

Prime Minister Dr Harini Amarsooriya in her message on International Women’s Day 2026 says that the governments goal is to build a Thriving Nation where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity.

The PM’s message:

“I extend my greetings to all sisters and daughters in Sri Lanka and around the globe on the occasion of International Women’s Day.This year, the United Nations has declared the global theme for International Women’s Day as “Rights. Justice. Action. For ALL Women and Girls,” emphasizing the realization of rights, the delivery of justice, and meaningful action for all women and girls.

Women are the true pillar of Sri Lankan society and economy. The role they play within the family and in society has today become a decisive factor in shaping the future of our nation. Through the Government’s policy statement, “A Thriving Nation – A Beautiful Life,” we envision going beyond treating women as mere beneficiaries and recognizing them as active partners in national development, ensuring that they receive the dignity and opportunities they rightfully deserve.

Within our policy framework, special focus has been placed on women. We are committed to recognizing the economic contribution extended by women as housewives, promoting women’s entrepreneurship, and expanding access to the technical and financial support necessary for self-employment alongside strengthening the legal framework required to ensure women’s safety in public transport, workplaces, and within the family environment. Further, we are taking steps to create the environment to increase women’s representation in decision-making bodies at national and regional levels. Special attention is also being given to implementing targeted programmes aimed at improving women’s nutrition, reproductive health, and mental well-being.

Women are not a group seeking sympathy; they are vital social partners endowed with intelligence, resilience, and creativity. Our goal is to build a “Thriving Nation” where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity

On this International Women’s Day, I sincerely hope that it marks the beginning of a new era in which the aspirations of all women in our country are realized as they shine before the world.

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Heat Index at Caution Level in the Sabaragamuwa, North-western and North-central provinces and in Colombo, Gampaha, Vavuniya, Mannar, Hambantota and Monaragala districts

Published

6 hours ago

2026/03/8

Priyan

Warm Weather Advisory issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 07 March 2026, valid for 08 March 2026.

Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Sabaragamuwa, North-western and North-central provinces and in Colombo, Gampaha, Vavuniya, Mannar, Hambantota and Monaragala districts

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

News

Lanka tea industry may lose $ 10-15 mn per week from ME war

Published

6 hours ago

2026/03/8

Thilina Walpola

The ongoing military conflict in the Middle East has adversely impacted on the Sri Lankan tea industry as the exporters are unable to supply tea to the region. The exporters estimate the revenue loss at about $ 10-15 million per week. The exporters have orders in hand for supply of tea and it is the logistical issues and war risk preventing them fulfilling such orders, the Tea Exporters Association (TEA) said in a statement.

“In order to mitigate the impact on the industry, the tea industry has jointly requested the government to support it in addressing the cash flow issue and consider absorbing a part of the additional freight and insurance charges. It has also requested government intervention to obtain the balance payment of about $ 50 million due on tea shipments already made to Iran under the barter deal,” TEA said on Friday.

The statement said approximately 52% of Sri Lanka’s tea exports reach the affected region mainly coming from the low grown area of the country dominated by tea smallholder farmers. According to 2025 tea export statistics, about 125 million kilograms of Ceylon tea were exported to the Middle East, with an estimated value of USD 750 million. The major importing countries of Ceylon Tea in the region include Iraq, Iran, Libya, Turkey, Saudi Arabia, Syria, and the United Arab Emirates. Though Libya and Turkey can be reached via Africa, the exorbitant freight charges have prevented the buyers in those countries from importing tea at the moment.

The supply routes to Middle East countries go via Strait of Hormuz and Red sea Suez Canal. Although there is no blockade on Suez Canal, due to the war risk both channels are currently not used by the major shipping lines. The tea exports to the region have almost come to a standstill due to the following reasons:

=All major shipping lines suspended their services to the region immediately after the outbreak of the conflict.

=Several seaports in the region were temporarily closed during the initial stages.

= Although a few shipping lines resumed limited operations from March 4, freight charges have

increased significantly by approximately USD 1,800 for a 20’ container and USD 3,000 for a 40’ container.

= Existing insurance coverage obtained by exporters is no longer valid.

=There is a lack of regular and scheduled vessels operating from Colombo to Middle Eastern destinations.

The tea exporters are experiencing serious cash flow constraints, as payments for shipments already

dispatched have been delayed due to the unsettled situation in the region. This has restricted exporters’

buying capacity and that was evident at this week’s tea auction, where overall prices declined by about Rs. 50/ per kg while low grown tea prices declined by about Rs. 75/ per kg.

If the situation continues for few more weeks it will have a serious impact on the tea auction as buyers may curtail the purchase of tea if the outward movements are restricted. This could directly impact on the income of the tea smallholder farmers.

In January 2026, the country earned $ 121.8 million from tea exports compared to $ 112.7 million in January 2025 (a 5% increase). The figures for February 2026 are not yet available but should be either similar to last year or higher. The disruption to tea exports in March will certainly affect the volume and value of the exports though the exact amounts cannot be estimated at this point.

According to the available data Sri Lanka has settled about 95% of its debt to Iran by supplying tea to Iran under the Tea for Oil mechanism. Even if the military conflict comes to an end, Sri Lanka will find it difficult to continue to supply tea to Iran unless a new mechanism is introduced. Under the prevailing US sanctions on Iran, the exporters may not be able to supply tea to Iran outside the barter system. Iran purchases about 11 million kg of tea from Sri Lanka annually under the barter deal.

The situation was discussed with the Minister of Plantation & Community Infrastructure at a meeting held on March 4, 2026.