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CHR accuses govt. of excessive printing of money in violation of agreement with IMF
The Center for Human Rights and Research (CHR) Sri Lanka, in a statement issued recently has alleged that the National People’s Power (NPP) government excessively printed money in violation of the agreement reached with the International Monetary Fund (IMF).
Executive Director, CHR, Rajith Keerthi Tennakoon said that printing of money, declining foreign reserves, and rising domestic debt could pose a significant challenge to achieving the year’s economic development targets, it said in a statement.
Tennakoon said: “From October 2024 to June 2025, the Central Bank of Sri Lanka printed Rs. 1,225.9 billion (or Rs. 1.2 trillion). The printing of money in violation of agreements with the International Monetary Fund could be the beginning of the country heading towards an economic crisis once again, according to the statement.
Contrary to the guidelines of the International Monetary Fund, the Central Bank printed Rs. 210.3 billion (10.4% expansion) in June 2025 alone. Rs. 233.90 billion was printed in March 2025, the highest amount printed in the first six months. During the Gotabaya regime, the economy was devastated by excessive money printing (e.g., the April-May 2022 expansion of 17 -20%). It is the joint responsibility of Parliament and the Central Bank to take appropriate steps to prevent the country from experiencing another financial crisis, it said.
The country’s debt has been increasing rapidly since the Presidential Election last September. Following the formation of the new government, Sri Lanka’s domestic debt, which stood at Rs. 17,595.05 billion as of April 2025, has increased to Rs. 18,629.86 billion, representing an additional Rs. 1,034.81 billion.
Under the new government, the country’s total domestic and foreign debt has increased from Rs. 28,574.65 billion to Rs. 29,480.39 billion, representing an increase of Rs. 905.74 billion. Although the amount of foreign debt has declined, this is mainly due to continued domestic borrowing through the issuance of treasury bonds and bills.
The Rs. 65 billion bond issue presented by the Central Bank on August 12 was not entirely sold. There was not a single bid for the 2032 bond (8% interest). This is a clear red light for the domestic borrowing policy.
The foreign reserves, which were $6.531 billion in June, fell to $6,080 million by the end of June. The foreign reserves in July were $ 6.114 billion. The ‘reserves’ are also announced, including derivative contracts through swaps.
However, when the swap exchange value is removed, the country’s net reserves, which were $2,799 million in March, have decreased to $2,210 million as of June, as follows.
Of the total reserves in December 2024, $6,122 million, Swap was $3,548 million, and net reserves were $2,574 million.
As of June 2025, the total reserves stood at $6,080 million, comprising $3,870 million in Chinese and other swaps and $ 2,210 million in net reserves. Accordingly, the decrease in net foreign reserves from December 2024 to June 2025 is $ 364M.
When the early signs of the economic collapse of 2021 – 2022 emerged, people with quantitative knowledge warned about money printing, unlimited borrowing, and a decline in foreign reserves. Despite those warnings, hiding facts and criticizing critics, the 2022 ‘financial collapse’ developed into a massive economic crisis. It is the responsibility of the Central Bank, the Treasury, the Ministry of Finance, and the Parliament to identify the leading signs of a similar financial collapse sooner and take measures.
The printing of money by Rs. 1,225.9 billion, a decline in foreign reserves by $ 364 million, and an increase in the country’s debt by Rs. 905.74 billion will inevitably lead to a decrease in the country’s economic growth rate. It is a situation that will have long-term adverse effects.
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Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
at 3.30 p.m. on 25 March 2026, valid for 26 March 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar, Vavuniya and Monaragala districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.
By Shamindra Ferdinando
A spokesperson for the US Embassy in Colombo declared that the United States and Sri Lanka maintain a long-standing defence partnership, grounded in transparency, mutual respect, and shared interests.
The official said so in response to The Island query regarding President Anura Kumara Dissanayake’s recent bombshell disclosure, in Parliament, that his government declined to allow the US Air Force to use the Mattala Rajapaksa International Airport, following the eruption of the latest West Asia war.
We sought views of the US on President Dissanayake’s claim against the backdrop of Sri Lanka being a party to the Acquisition and Cross-Servicing Agreement (ACSA) since 2007. Sri Lanka extended the ACSA in 2017, for another 10-year period, and its extension comes up next year.
The President revealed that the US had requested permission to use Mattala, between 04 and 08 March.
Claiming that the request had been made on 26 February, two days before the war began, President Dissanayake said that the US had sought to land two aircraft, carrying eight anti-ship missiles, but that the request had been turned down to maintain Sri Lanka’s neutrality. The President revealed that the aircraft were to come from a US base in Djibouti.
The US embassy pokesperson explained that questions related to operational movements, including ‘Operation Epic Fury’, should be directed to the Department of War (DOW) in Washington.
Camp Lemonnier is the primary base of operations for US Africa Command in the Horn of Africa. China, too, has its only overseas military base in Djibouti in the vicinity.
Military sources said whatever various interested parties said about US-Sri Lanka relations, the former provided significant intelligence support during last phase of the conflict that enabled the Navy to hunt down floating LTTE arsenals in international waters. Of the eight LTTE vessels sunk, the US backed four hits with specific intelligence, sources said.
News
No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor
Sri Lanka’s worker remittances had not seen a decrease despite the ongoing conflict in West Asia, Central Bank (CBSL) Governor, Dr. Nandalal Weerasinghe said yesterday.
“Based on currently available data, they have not seen a decline in remittances. In fact, according to that we have observed, is a slight increase in remittances in the past few days, ” the Governor said at a media conference held at the Central Bank head office in Colombo.
Governor Weerasinghe also mentioned that he had not seen any reports about Sri Lankans returning to the country from the Middle East due to the ongoing conflict.
The Central Bank Governor, however, acknowledged that there had been a decrease in tourist arrivals. He confirmed that tourist arrivals had decreased by around 17 percent due to the current volatile situation in the Middle East.
Meanwhile, the Central Bank of Sri Lanka has decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%, following its latest Monetary Policy Board meeting.
By Hiran H Senewiratne
UN votes to recognise enslavement of Africans as ‘gravest crime against humanity’
Meta and YouTube found liable in landmark social media addiction trial
Showers expected in the Western and Sabaragamuwa provinces and in Galle and Matara districts after 2.00 pm.
Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts
US dodges question on AKD’s claim SL denied permission for military aircraft to land
No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor
‘Dates have the highest sugar content to fight Coronavirus’
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