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Cabraal dismisses critics and predicts 5% growth this year

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By Saman Indrajith

The country was expected to maintain an economic growth rate of 5 percent in the current year, according to the fiscal policy maintained by the Government, Money and Capital Market and State Enterprise Reforms, State Minister Ajith Nivard Cabraal said in Parliament on Tuesday. 

Cabraal said that even the tourism industry could be revived before the year end, boosting the economy for the benefit of the public. He was participating in the Adjournment Motion by JVP MP Anura Kumara Dissanayake on the economic situation in the country.

The State Minister, who is a former Central Bank Governor, said that the Opposition wanted the government to seek assistance from the International Monetary Fund (IMF) to find solutions, but there were alternatives that had to be tried first.

Cabraal said that some people only spoke of diseases. However much they exaggerated them, no change happened and they could not find a cure. A fiscal analysis was given by the Central Bank ever fortnight and it made everything clear. However, the member who moved the motion spoke of loans, the Minister said.  

Minister Cabraal said that some politicians had expected the government to default on loan repayment in 2020. But they had been disappointed when the government honoured its obligations. Then they dreamt the government would fail to repay loans in 2021, and they were disappointed again.

They were now hoping and praying that the government will fail to service debt in 2022, or 2023.

“But they are in for another big disappointment,” the State Minister said.

Cabraal said the same group of politicians who wanted the country to fail on the economic front had spread rumours that the government would not be able to purchase COVID-19 vaccines. They had been disappointed once again. The government had been able to buy vaccines due to the proper fiscal management practised by its leaders.

The State Minister said that those who moved the Adjournment Motion couldn’t understand the fact that the indebtedness in 2005 when Mahinda Rajapaksa took over the government had been 91 percent of the state revenue and it had been reduced to 71 percent when he handed over it to the yahapalana government. He added that the national debt of USD 24 billion was increased to USD 35 billion during the yahapalana government, which the JVP had supported.



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All set for Colombo rally against govt.’s tax policies

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People’s Struggle Movement’s National Executive Council members Wasantha Mudalige and Jayantha Amarasinghe speaking to the media yesterday

The Frontline Socialist Party-backed People’s Struggle Movement is set to stage a protest march in Colombo today (03) against what it describes as the growing tax burden on the public and the rising cost of living.

The organisers are due to commence the “Colombo March Against Unjust Taxes” at noon from Campbell Park, Borella. The FSP has also been mobilising support for the protest in Colombo and its suburbs in the run-up to the event.

People’s Struggle Movement National Executive Council member Wasantha Mudalige, speaking at a media briefing in Nugegoda yesterday (02), called on the public to join the protest, saying the movement intended to bring the tax burden faced by ordinary people to the forefront.

Mudalige alleged that successive tax measures had placed an excessive burden on households, particularly through taxes on food and educational items. He also criticised the Government over what he described as the high cost of basic food items and the difficulties faced by parents in meeting their children’s educational expenses.

He accused the Opposition of failing to adequately address the issue, claiming that opposition parties raised such concerns, mainly during election periods.

Mudalige also criticised the Government for what he described as a departure from promises made before the 2024 presidential election regarding taxes on educational equipment.

He questioned the tax burden on food items, citing figures of Rs. 100 per kilogramme on dried sprats, Rs. 310 per kilogramme on chicken and Rs. 11 per egg.

He further alleged that while ordinary people were bearing a heavy tax burden, wealthy groups were receiving tax concessions. He also criticised the Government’s economic programme and its implementation of measures associated with the International Monetary Fund (IMF).

The movement has framed today’s protest as part of a broader campaign over the cost of living and taxation. The People’s Struggle Alliance has separately announced that the Campbell Park demonstration will be the first in a series of public actions, with further protests planned in November.

Mudalige said the movement would continue to take the issue to the streets and urged the public to participate in today’s demonstration.

People’s Struggle Movement National Executive Council member Jayantha Amarasinghe also addressed the press.

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Yoshitha R money laundering trial postponed

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The Colombo High Court yesterday postponed the trial in the case filed under the Prevention of Money Laundering Act against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa.

The case was taken up before Colombo High Court Judge Udesh Ranatunga, with Yoshitha Rajapaksa, who is currently out on bail, appearing in court.

The trial was postponed as the President’s Counsel appearing for the defence was indisposed.

The Attorney General has filed the case against Rajapaksa, alleging that he committed an offence under the Prevention of Money Laundering Act by purchasing five plots of land in Dehiwala and Ratmalana, worth more than Rs. 73 million.

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Lankan troops test mettle in Russian war games

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Lankan Army troops participating in Exercise ‘Wolverine Path II–2026’ in the Russian Federation

A contingent of the Sri Lanka Army, comprising 20 officers and 55 other ranks, participated in the combined military exercise ‘Wolverine Path II–2026’, conducted with the Armed Forces of the Russian Federation in Vladivostok, Russia, from September 18 to 25.

According to the Ministry of Defence, the exercise primarily focused on counter-terrorism operations and provided participating troops with training in a challenging combined operational environment.

The exercise included a range of tactical activities, including heli-rappelling, close-quarters battle (CQB), ambush operations, sniper firing, drone operations, buggy training and combat medical support.

The Ministry said the training enabled Sri Lankan troops to further develop their combat skills, tactical coordination and operational readiness.

It also provided an opportunity for the two militaries to exchange professional knowledge, operational experience and tactical expertise. Sri Lankan personnel gained exposure to training methodologies, tactical approaches and operational practices adopted by the Russian Armed Forces, the Ministry said.

The participation also enabled the Sri Lankan contingent to identify lessons from the joint training and share its own experiences with the Russian military.

The Sri Lankan contingent returned to the country following the exercise and arrived at Mattala Rajapaksa International Airport on September 28.

The Ministry said participation in the exercise contributed to enhancing the professional knowledge, tactical awareness and operational preparedness of Army personnel while promoting military-to-military cooperation, mutual understanding and professional relations between Sri Lanka and Russia.

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