News
Treasury Secretary proposes to strengthen public finances while reducing money printing
Treasury Secretary Mahinda Siriwardana told the media yesterday (18) that the Finance Ministry would take steps to stabilise the economy by strengthening public finances and reducing money printing.
He said in April 2022, about Rs 125 billion had been printed. The government expenditure too had increased despite escalating foreign exchange issues, he added.
The Treasury Secretary made said so ahead of the discussions with the International Monetary Fund in the US.
Siriwardana also told the media that a circular on government spending would be issued in the coming days.
The Treasury Secretary said that the government had to manage resources carefully and reduce the budget deficit as it had caused many problems across the economy.
“There has been a lot of discussion about the money issued by the Central Bank. That is happening because of problems in public finances,” he said.
The new Finance Ministry Secretary said that the state did not have enough revenue and that they were no longer in a position to get foreign loans.
“So, the entire deficit has to be financed domestically. Given that there are limited domestic resources, the Central Bank is compelled to find the money,” he said.
However, this is difficult in the present economic circumstances, the Treasury Secretary said.
Siriwardana said that they had not decided to halt domestically financed capital projects.
The Sri Lankan government on Sunday sent a delegation to the International Monetary Fund (IMF) for discussions over ways to get the lender’s loans.
Sri Lanka’s Finance Ministry said last Tuesday that the government had decided to suspend normal debt servicing of all affected debts for an interim period till it puts together an orderly and consensual restructuring programme supported by the IMF.
News
Showers will occur at times in the Western, Sabaragamuwa, Central, North-western and Northern provinces and in Anuradhapura, Galle and Matara districts
WEATHER FORECAST FOR 16 MAY 2026
Issued at 05.30 a.m. on 16 May 2026 by the Department of Meteorology
According to the today’s latest weather analysis, the low-pressure area located northeast of Sri Lanka, still persists. The Department of Meteorology is continuously monitoring the behavior, development and path of the system.
Due to the influence of the above system, Showers or thundershowers will occur at times and cloudy skies are expected in the Western, Sabaragamuwa, Central, North-western and Northern provinces and in Anuradhapura, Galle and Matara districts. Fairly heavy showers about 75 mm are likely at some places in these areas. Showers or thundershowers may occur at a few places in the Uva and Eastern provinces after 1.00 pm.
The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.
News
Lanka’s eligibility to draw next IMF tranche of USD 700 mn hinges on ‘restoration of cost-recovery pricing for electricity and fuel’
The International Monetary Fund (IMF) said on Thursday that the completion of Sri Lanka’s combined Fifth and Sixth Reviews, under the Extended Fund Facility (EFF), remains subject to approval by its Executive Board, which is expected to meet in the coming weeks.
Addressing a media briefing, IMF Communications Department Director, Julie Kozack, said IMF staff and Sri Lankan authorities had reached a staff-level agreement on 09 April.
She noted that several prior actions must be completed before the programme can be submitted to the Executive Board, including the restoration of cost-recovery pricing for electricity and fuel, measures to protect vulnerable groups, and the completion of financing assurances.
Upon Board approval, Sri Lanka would gain access to approximately US$700 million in financing, Kozack said.
Responding to a question on whether the government’s fuel subsidy scheme — including the Rs. 100 per litre diesel subsidy — was consistent with the IMF’s pricing framework, Kozack declined to comment directly on the measure. However, she reiterated that the programme requires both cost-recovery pricing reforms and safeguards for vulnerable communities.
Kozack also observed that Sri Lanka had recently faced “two very large shocks”, referring to Cyclone Ditwah and the wider external impact of the Middle East conflict, which, she said, had affected both the economy and the public.
Despite these challenges, she said Sri Lanka’s reform programme was yielding positive results, citing strong fiscal performance in 2025, progress in debt restructuring, 5 percent economic growth, and inflation returning to positive territory following a period of deflation.
She reaffirmed the IMF’s commitment to supporting Sri Lanka’s reform agenda, stressing that the institution continues to work closely with the authorities to sustain economic stability and recovery.
News
Sanath Nishantha’s brother sentenced to jail over assault case
Former Arachchikattuwa Pradeshiya Sabha Chairman, Jagath Samantha, was yesterday sentenced to five-and-a-half years’ rigorous imprisonment by the Chilaw High Court after being found guilty of assaulting the Arachchikattuwa Divisional Secretary.
The court also ordered Samantha to pay Rs. 1 million as compensation to the victim, failing which he will serve an additional 24 months in prison.
The case had originally been filed against former State Minister Sanath Nishantha and his brother Jagath Samantha over the assault incident.
However, following the death of Sanath Nishantha, in a road accident on the Katunayake Expressway, on 25 January, 2024, only Samantha appeared before court for the proceedings.
The verdict was delivered after the High Court considered the evidence and submissions presented during the trial.
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