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Uncertainty over achieving debt sustainability has been resolved – State Minister for Finance

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State Minister for Finance Shehan Semasinghe, announced that all uncertainties surrounding Sri Lanka’s debt sustainability have been resolved.

He noted that while the international community has shown optimism about Sri Lanka’s debt restructuring, some local parties remain skeptical for political reasons.

The State Minister made these remarks during the press briefing titled “Collective Path to a Stable Country” held at the Presidential Media Centre on Tuesday (02).

the state minister further elaborated;

The good news about debt restructuring, which is crucial for rebuilding the country’s economy, has been received. On June 26, agreements were reached with the Official Creditor Committee and the Paris Club countries as bilateral creditors. Additionally, an agreement was made with China Exim Bank on the same day, completing two essential aspects of debt restructuring.

The international community has expressed optimism about Sri Lanka’s debt restructuring. However, some parties refuse to view this process positively for political reasons. It is very unfortunate for the country. Initially, we believed that the criticism from some parties stemmed from a lack of understanding of our efforts.  It is now evident that those statements are made due to political hypocrisy. This was clearly demonstrated by the opposition when President Ranil Wickremesinghe addressed Parliament. Therefore, the public should recognize the extent to which political manoeuvring is interfering with the country’s economic progress.

Comments were made about the situations in countries like Ghana, Ecuador, and Argentina. However, it’s important to understand the differences in debt restructuring between low-income and middle-income countries. Debt restructuring in Sri Lanka, a middle-income country, is more complex than in low-income countries. Despite this, Sri Lanka is ahead in the debt restructuring process compared to other middle-income countries.

Additionally, we are prepared to demonstrate three key points regarding debt restructuring. Our creditors have granted a grace period from 2024 to 2027 for debt repayment. During this period, we have the opportunity to use approximately USD 5 billion for the benefit of the country’s people.

By 2032, the public debt-to-GDP ratio should be reduced to 95%. The gross financial requirement needs to be lowered to 13% between 2027 and 2032, and foreign debt servicing should be reduced to 4.5% during the same period.

We have now agreed on a specific debt restructuring plan to achieve these three goals, eliminating all uncertainties regarding the country’s debt sustainability.

Through this economic management approach, inflation in Sri Lanka has decreased from 70% to 1.7%. Additionally, the interest rate for one-year treasury bills has reached 10% in the country’s Treasury bill auction.



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Dr. Bellana: “I was removed as NHSL Deputy Director for exposing Rs. 900 mn fraud”

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Dr. Bellana

Interdicted Deputy Director at the National Hospital, Sri Lanka (NHSL) Dr. Rukshan Bellana yesterday (29) alleged that the powers that be moved against him for seeking the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) investigation into a massive fraud at the NHSL laboratory.

Dr. Bellana said so in response to The Island query regarding the circumstances the Health Ministry interdicted him on 18 December, through a letter, as directed by the Health Committee of the Public Service (PSC) Commission. “That letter has been signed by an Additional Secretary, as Health Secretary Dr. Anil Jasinghe was overseas,” Dr. Bellana said.

Dr. Bellana stated that the government had paid for reagents, contaminated or close to expiry dates, obtained from a leading local medical supplier, since 2022. He emphasised that his complaint to the CIABOC, and subsequent complaint to the Criminal Investigation Department (CID), were entirely based on the issues raised by the National Audit Office (NAO).

Responding to another query, Dr. Bellana said that the public funds, amounting to Rs. 900 mn, had been spent on chemical reagents past expiry dates. Regardless of the intervention made by the NAO, the NHSL continued to procure supplies from the same company, Dr. Bellana said, adding that he had received the unconditional support of the civil society. Among them were Dr. Chamal Sanjeewa, President of Medical and Civil Rights Professional Association of Doctors (MCPA), President of Academy of Health Professionals Ravi Kumudesh, and leader of Mage Rata Sanjaya Mahawatta.

Dr. Bellana said that he had complained about the scam to the CIABOC in June this year.

Dr. Chamal Sanjeewa, who also lodged a complaint with CIABOC, regarding the same matter, is on record as having said in September this year that the reagents had been procured over a three-year period without the proper approval of the Medical Supplies Division of the Ministry. Dr. Sanjeewa has alleged that some of the reagents were either contaminated or close to expiry dates, while contracts had been given to a single company at unapproved prices.

Dr. Bellana said that had there been a proper system for CIABOC and law enforcement authorities to act on findings made by the NAO they wouldn’t have personally intervened in the NHSL laboratory matter. “Parliament should look into this. Did Parliament take up the NHSL laboratory matter at the relevant watchdog committee or at the Sectoral Oversight Committee that handled health?” Dr. Bellana asked.

Asked whether the letter that informed him of his interdiction gave any specific reason for the action taken, Dr. Bellana said the Ministry had found fault with him for speaking to the media. The irate ex-official said that he never hesitated to take a stand against injustice. “When former Health Minister Keheliya Rambukwella was accused of corruption, pertaining to medical procurement, I condemned the Minister. Lambasted those responsible for wrongdoings.”

Dr. Bellana said that the NAO had dealt with mega crime involving the public and private sector. “That is the undeniable truth. Parliament should look into this as public money is its responsibility. Having vowed to stamp out corruption, the NPP was allowing and encouraging those who had been making money at the expense of the sick, Dr. Bellana said.

Dr. Bellana said that as many as 10,000 tests were conducted daily at the NHSL. The racketeers had been active during Aragalaya as the NHSL and the private supplier reached agreement in 2022 and the process continued even after the last presidential election, conducted in September 2024.

Dr. Bellana said that the long delay in finalising the Auditor General’s appointment exposed the government. If those holding high political office were genuinely interested in fighting corruption, they wouldn’t have allowed that Office of AG stay vacant even for a day.

Dr. Bellana noted the tough statements issued by the Bar Association, Transparency International Sri Lanka and the Committee on Public Finance demanding the immediate appointment of AG.

Health Ministry officials were not available for comment.

By Shamindra Ferdinando

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BIA unions demand bonuses equal to five months’ basic salaries

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BIA unions, including those affiliated to political parties, are demanding bonuses equal to five months’ basic salaries.

A group of workers yesterday (29) protested outside BIA urging the Airport and Aviation Services Sri Lanka (Private) Ltd to increase their bonuses. They claimed that the Chairman of Airport and Aviation Services Sri Lanka (Private) Ltd., Air Vice Marshal (Retd) Harsha Abeywickrama, had assured them that they would be paid bonuses worth five times their basic salaries.

The SriLankan Nidahas Sewaka Sangamaya (SLNSS) of the airport, the Podujana Sewaka Sangamaya, the Pragathishili Sewaka Sangamaya, the Jathika Sevaka Sangamaya, and the SLNSS of SriLankan Airlines joined the protest.

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People warned of rising water levels at Kotmale reservoir

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The Sri Lanka Mahaweli Authority has issued an urgent safety warning to residents living along the banks of the Kotmale Oya and the Mahaweli River, as water levels in the Kotmale Reservoir are reaching maximum capacity.

According to a special weather advisory issued by the Department of Meteorology on December 26, 2025, heavy rainfall is expected in the catchment areas over the coming days.

In response, the Mahaweli Authority released a statement on December 27, warning that spill gates may have to be opened to manage the water flow.

Eng. A.M.A.K. Seneviratne, Resident Engineer and Deputy Director of the Kotmale Reservoir, stated that the opening of spill gates would lead to a significant rise in the water levels of both the Kotmale Oya and the Mahaweli River.

Areas on Alert

Residents in the following Divisional Secretariat divisions are urged to remain extra vigilant:

• Nuwara Eliya District: Kotmale West and Kotmale East.

• Kandy District: Udapalatha, Udunuwara, Doluwa, Pasbage Korale, and Ganga Ihala Korale.

Authorities have advised the public in these low-lying and river-adjacent areas to monitor the situation closely and take necessary precautions to ensure their safety and the protection of their property.

By S.K. Samaranayake

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