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Verité Research Head lambasts govt. and IMF for ‘privatising profits and socialising losses’

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Nishan de Mel

Democracy in Sri Lanka will not work unless there are robust accountability mechanisms, Executive Director of Verité Research Nishan de Mel has said.Dr. De Mel said that there were undemocratic aspects to the way the IMF operated.

The Sri Lankan government was privatising profits while socialising losses because of the lack of accountability, De Mel added.

“When those in power work for the benefit of themselves and their friends, they ensure that a small group of people enjoy the benefits of growth or implement policies that benefit targeted groups. However, when things go wrong, for example, when we have to restructure domestic debt, those in power make sure that the people in general bear the losses. This is what we have seen in Sri Lanka.”

Such things happened frequently in Sri Lanka because there was little accountability, De Mel said, noting that lack of accountability had led to the 2022 economic crisis, and unless Sri Lanka established robust accountability mechanisms the current economic stability would be transient.

The Executive Director of Verité Research said they had asked both the government and the IMF to present them with data pertaining to their agreement.

“The IMF has said that it is only accountable to the government. It says it has analysed data but only the government can publish them. No one has seen this analysis––not even Parliament. Again, this is a problem of accountability. So, there is a problem of democracy in the way the IMF works.”

Dr. de Mel said that he was planning to attend several IMF summits next month and question the international lender on the lack of its transparency in Sri Lanka. The IMF, too, must be more transparent and accountable, he said.

“The person who led the IMF team here has a paper on countries that restructured debt since 1998. He looks at 14 countries. According to this, Sri Lanka is the only country that shifted the full burden of domestic debt restructuring on pension funds like the EPF. The overwhelming majority of the countries didn’t touch such funds at all.”

The Executive Director of Verité Research said the government had insisted that banks would collapse if the banking system had to bear some burden of domestic debt restructuring. However, that conclusion had been reached without any analysis.

“As I said, all the other countries that restructured debt shifted part of burden debt restructuring on to the banking sector. There are ways of protecting banks during debt restructuring. The government has placed all the burden on the pension funds and says that the impact on these funds are limited. It also claims that banks will collapse if they are affected by domestic debt restructuring. So, which claim is true? Why can’t the banks share part of the burden?”

Instead of demanding the government lower taxes, people must ask the government to be more accountable for what they do with the tax, he said.

“If we don’t pay taxes the government will have to borrow. If we don’t pay taxes now, our children will be in trouble. Instead, we must make sure that the government spends our tax rupees well,” said Dr. de Mel.



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President Disanayake, Japanese Ambassador discuss bilateral cooperation

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President Anura Kumara Disanayake met with Ambassador of Japan to Sri Lanka, H. E.. Akio ISOMATA, this morning (27) at the Presidential Secretariat.

During the meeting, the Ambassador officially invited President Disanayake to visit Japan and expressed appreciation for the new government’s policy framework.

The Japanese Ambassador stated that efforts have been made to include Sri Lanka in the recently launched security cooperation assistance program by the Government of Japan.

Extensive discussions were held regarding the ongoing and future initiatives of the joint Japan-Switzerland-South Africa program aimed at fostering national reconciliation among the northern communities affected by the 30-year conflict. Additionally, they reviewed the current status of Japanese investments in Sri Lanka.

Furthermore, the current status and progress of digital economic and airport investments were discussed. The Ambassador also reaffirmed Japan’s commitment to supporting Sri Lanka’s Digital Transformation Program, emphasizing the Government of Japan’s intention to invest in port and aviation-related projects, as well as digitalization initiatives in Sri Lanka.

The discussion was attended by Advisor to the President on Economic and Financial Affairs Dr. Duminda Hulangamuwa, Senior Additional Secretary to the President Roshan Gamage, First Secretary & Head of Economics and Development Cooperation Section OHASHI Kenji, and First Secretary & Head of Political Section MURATA Shinichi.

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President meets Senior Naval Officers

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A discussion on Sri Lanka’s current security situation was held on Wednesday (26) at the Presidential Secretariat, under the leadership of President Anura Kumara Disanayake.

During the meeting with senior naval officers, attention was drawn to future security measures concerning the country’s security situation.

Extensive discussions were held on maritime operations conducted to ensure national security, including efforts to curb arms and drug trafficking via sea routes and surveillance missions in deep-sea waters.

Deputy Minister of Defence Aruna Jayasekara, Secretary to the Ministry of Defence Air Vice Marshal Sampath Thuyacontha, Commander of the Navy Vice Admiral Kanchana Banagoda, and several senior naval officers participated in the meeting.

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Govt. to initiate talks on setting up Truth Commission: FM Herath

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Herath

UNHRC Session in Geneva:

The JVP/NPP government has expressed its willingness, at the UNHRC in Geneva to initiate talks on setting up a Truth and Reconciliation Commission to investigate acts of violence caused by racism and religious extremism,

Addressing the High-Level Segment of the 58th Regular Session of the United Nations Human Rights Council (UNHRC) in Geneva, Foreign Minister Vijitha Herath said: “The contours of a truth and reconciliation framework, will be further discussed with the broadest possible cross section of stakeholders, before operationalisation to ensure a process that has the trust of all Sri Lankans. Our aim is to make the domestic mechanisms credible and sound within the constitutional framework. This will include strengthening the work towards a truth and reconciliation commission empowered to investigate acts of violence caused by racism and religious extremism that give rise to tensions within Sri Lankan society.”

“The Government has pledged to take tangible steps in the interest of further advancing national unity and reconciliation. The President has proposed to declare a Sri Lanka Day, in line with our vision for a reconciled Sri Lanka and commitment to bridging gaps between communities. We will ensure that the domestic mechanisms and processes, established to address challenges emanating from the conflict, will continue their work in an independent and credible manner, within the Constitutional framework. Domestic institutions, such as the Office on Missing Persons (OMP), Office for Reparations, and Office for National Unity and Reconciliation (ONUR), will be strengthened,” he said.

Minister Herath reaffirmed Sri Lanka’s commitment to human rights, reconciliation, and sustainable development, highlighting the country’s progress and government’s strategies for continued engagement with the international community.

The government is firmly and sincerely committed to working towards a unified Sri Lanka that respects and celebrates the diversity of its people with no division or discrimination based on race, religion, class and caste. We will not leave room for a resurgence of divisive racism or religious extremism in our country. The fundamental and long standing principles of democracy and freedom enshrined in our Constitution will be fully respected and safeguarded while protecting the human rights of all citizens. Every citizen should feel free to practice their religion, speak their language, and live according to their cultural values without fear or discrimination. No one should feel that their beliefs, culture, or political affiliations will make them targets of undue pressure or prejudice. Administrative, political and electoral processes will be activated towards this end.

A number of confidence building measures have also been taken in the last few months towards reconciliation. In November 2024, a number of roads in the Northern Province, including the Palali-Achchuveli main road, were opened for public use, after several decades. The President, during his visit to the North in January this year, made an open invitation to Tamil-speaking youth to be part of Sri Lanka’s police service. The 2025 Budget includes significant allocations to upgrade the libraries throughout the country, including the historical Jaffna library which is a symbol of education and enlightenment for the Tamil community, he said.

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