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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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Ms. U. L. Mathisha Jinanjalie Jayathilake, appointedto the post of Commissioner, Department of Probation and Child Protection Services

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The Cabinet of Ministers approved the resolution furnished by the Minister of Women and Child Affairs to appoint Ms. U. L. Mathisha Jinanjalie Jayathilake, the officer in Grade I of Sri Lanka Administrative Service to the post of the Commissioner at the Department of Probation and Child Protection Services with immediate effect.

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Commander of the Navy pays courtesy call on Speaker of the Parliament

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The Commander of the Navy, Vice Admiral Damian Fernando paid a courtesy call on the Speaker of the Parliament, Dr Jagath Wickramaratne at the Office of the  Speaker, today (7 July
2026).

The meeting marked the Commander of the Navy’s first official interaction with the Speaker following his assumption of command of the Sri Lanka Navy. During the cordial discussion, they exchanged views on the Navy’s role in matters of national importance.

The formal meeting drew to a close with an exchange of mementoes, signifying the importance of the occasion.

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Prison mayhem leaves at least 26 dead; five officers killed in revenge violence

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Police and STF personnel rushing an injured prison officer to an ambulance after yesterday’s clash at the Negombo Prison.

At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.

According to unconfirmed reports the prison officers were killed by rioters yesterday morning,  in retaliation, and weapons carried by those officers were grabbed by them.

Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.

The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.

However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.

Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.

The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.

The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.

Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.

The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.

Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.

Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.

By Norman Palihawadane

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