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Basil tells FT all options being evaluated to get out of debt trap

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Finance Minister, Basil Rajapaksa has told The Financial Times (UK) in a recent interview that the country was negotiating with international bondholders for debt relief. He said that they were also ‘weighing an approach to the IMF.’

He told the FT that the government was “negotiating with everybody” and “trying all our options” to avoid a default and to seek a way out of the financial crisis the country was faced with.

“We have [international sovereign bonds] which we have to repay back, so we are negotiating with them. Then we have creditors and we have to service their debt, so whether we can have an adjustment or some type of thing,” he said.

The government would “think about a programme with the IMF” he said adding that “all those discussions are going as well.”

Sri Lanka has about $7bn in debt payments due in 2022. .

Rajapaksa said that he believed that the government could manage debt repayments but was also preparing for contingencies. “I know it’s very difficult because we have to pay this year $6.9bn and, additional to that, we have to find money for medicine, raw material, fuel, all these things,” he said.

When he was asked by FT whether the government was negotiating a restructuring with bondholders, Rajapaksa replied, “something like that. Obviously you can understand what we want and you can understand what the bondholders would like to have,” he added.



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Presidential secretariat launches initiative to install sanitation facilities at fuel stations under “Clean Sri Lanka”

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In a landmark move to promote public hygiene and accessibility, the Government on Wednesday (14) launched a national-level initiative to install modern sanitation facilities at fuel stations across the country under the “Clean Sri Lanka” programme.

The official launch was held at the Presidential Secretariat, with the participation of top government officials and key industry stakeholders.

The initiative aims to transform fuel stations into clean, safe and inclusive spaces by providing essential sanitation infrastructure accessible to all segments of the public, particularly women, children, the elderly and people with disabilities.

An MoU was signed between the Presidential Task Force on Clean Sri Lanka, the Ministry of Energy and the island’s four major fuel providers: Ceylon Petroleum Corporation (CPC), Lanka IOC PLC (LIOC), Sinopec Energy Lanka (Pvt) Ltd and RM Parks (Pvt) Ltd.

Under the three-year programme, 540 modern public sanitation facilities will be established at selected fuel stations islandwide. The timeline for rollout is as follows:

Company 2025 2026 2027
CPC 25 50 50
LIOC 25 50 40
Sinopec 25 50 75
RM Parks 25 50 75
Total 100 200 240

By the end of 2025, at least 100 of these facilities are expected to be operational, providing clean and user-friendly amenities to travellers across the country.

Speaking at the event, Secretary to the President Dr Nandika Sanath Kumanayake stated, “This is not just a policy commitment but a promise to build a healthier, cleaner and more dignified Sri Lanka. The Clean Sri Lanka initiative seeks to deliver long-term public services that meet modern hygiene standards.” He also highlighted that this partnership between the public and private sectors sets an example for delivering effective and sustainable services. Plans are in place to encourage further participation from large-scale private sector entities, such as retail chains, to extend the reach and impact of the programme.

The event was attended by Secretary to the Ministry of Energy, Prof. Udayanga Hemapala; Senior Additional Secretary to the President,  Russell Aponsu; senior executives from the four fuel providers; and officials from the Clean Sri Lanka Presidential Task Force.

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Financial assistance from the President’s Fund for next of kin of victims of the Kotmale bus accident disbursed through Divisional Secretariats

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On the instructions of President Anura Kumara Disanayake, the funds allocated from the President’s Fund for those who lost their lives in the recent bus accident in the Garandiella area, Kotmale have now been forwarded to the relevant Divisional Secretariats.

Accordingly, a sum of Rs. 1 million will be provided to the next of kin of each individual whose life was lost in the accident, and the funds will be handed over to their respective family members.

These funds have been released to the Divisional Secretariats of the following areas—Tissamaharama, Lunugamvehera, Welimada, Haldummulla, Ella, Kundasale, Bamunakotuwa, Paduwasnuwara West, Polpithigama, Wanathawilluwa, Chilaw, Buttala, Thanamalwila, Wellawaya, Kanthale and Rambewa where the 22 individuals who lost their lives in the accident were residents.

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USD 6.9 mn loss due to fertiliser imports: Mahindananda seeks anticipatory bail

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Mahindananda / Shasheendra

Shasheendra, too, is to be questioned soon

Former Agriculture Minister Mahindananda Aluthgamage has filed an anticipatory bail application in the Fort Magistrate’s court in a bid to prevent the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) from taking him into custody in connection with the ongoing investigation into the importation of a stock of allegedly substandard organic fertiliser from China during Gotabaya Rajapaksa’s presidency.

Colombo Chief Magistrate Thanuja Lakmali has asked the CIABOCt to present its position regarding the issue at hand to the court on May 19.

The CIABOC has asserted that the transaction caused Sri Lanka a loss of USD 6.9 mn.

The CIABOC arrested former Additional Secretary (Development) to the State Ministry of Agriculture, Mahesh Gammanpila on April 28, 2025, over his role in the deal with China’s Qingdao Seawin Biotech in 2021.

At the time Mahesh Gammanpila served as the Secretary to the State Ministry of Agriculture, Shasheendra Rajapaksa had been its Minister. Gammanpila is the current Chief Secretary of the Uva Provincial Council.

Aluthgamage had been the Cabinet Minister at the time the government finalised the questionable deal with the Chinese company.

CIABOC, on May 5, told court that the investigations were continuing and the ministers who decided on the importation of fertiliser from China, too, would be arrested and produced in court.

According to the CIABOC website, Mahesh Gammanpila has caused approximately USD 6.9 million loss to the government by issuing orders to open the suspended Letters of Credit to import the substandard organic fertiliser consignment from Qingdao Seawin Biotech, China, in 2021.

Although Fort Magistrate granted bail to Gammanpila on May 5, he continued to be in remand as he couldn’t meet the bail conditions. The court has also imposed a travel ban on him. (SF)

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