News
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.
News
Joint programme between President’s Fund and Janashakthi Foundation to expand healthcare facilities for children
A special collaboration between the Presidents’s Fund and the Janashakthi Foundation, aimed at expanding healthcare facilities available to children under the age of 18, was launched on Wednesday (06) morning.
Implemented under the theme “Building a Healthier Today for a Winning Tomorrow”, this national initiative has been introduced through the joint efforts of the President’s Fund and the Janashakthi Foundation with the objective of reducing the financial barriers associated with children’s healthcare.
Under the President’s Fund, only a portion of the medical expenses incurred by a patient is generally covered. However, under this new collaboration, the Janashakthi Foundation will provide either an equivalent amount or the remaining balance of the treatment cost, whichever is lower.
Speaking on the occasion, Secretary to the President’s Fund and Senior Additional Secretary to the President, Roshan Gamage, stated that the present Government had taken steps to decentralise and digitalise the operations of the President’s Fund, thereby transforming it into a truly people-centric fund. He noted that this had reinforced public confidence in the Fund’s transparency, accountability and effectiveness and added that the collaboration with the Janashakthi Foundation had further strengthened this process.
Gamage further stated that close and meaningful coordination with the private sector would help enhance healthcare assistance provided to children and minimise the gap between the financial aid available and the actual cost of essential medical treatment.
Also addressing the gathering, Managing Director and Group Chief Executive Officer of the Janashakthi Group, Ramesh Schaffter, stated that difficulties in accessing medical treatment constitute a major obstacle preventing children from progressing towards a better future.
He further stated that the collaboration seeks to reduce that obstacle by extending support to children who are in urgent need of assistance, thereby laying the foundation for future generations to face tomorrow with greater confidence.
Under this programme, applicants seeking additional financial assistance are required, when applying to the President’s Fund, to duly complete and submit a consent form authorising the secure sharing of their information with the Janashakthi Foundation.
The identification of children requiring financial assistance, verification of their information and approval of funds will continue to be carried out by the President’s Fund.
Under this initiative, payments will generally be made to the guardians of children following the completion of treatment. However, in cases involving emergency treatment and treatment conducted overseas, payments will be made in advance.
Applicants submitting medical assistance applications to the President’s Fund from 15 May 2026 onwards will be eligible to apply for additional funding from the Janashakthi Foundation.
The event, held at the Hilton Colombo, was attended by J.M. Wijebandara, Director General of Legal Affairs at the Presidential Secretariat and Advisor to the President (Legal Affairs); C.T.A. Schaffter, Founder and Chairman Emeritus of the Janashakthi Group; Gamika De Silva, Group Chief Marketing Officer; Dilshan Wirasekara, Deputy Chief Executive Officer of the Janashakthi Group; as well as officials of the President’s Fund and the Janashakthi Foundation.
President’s Media Division (PMD)
News
Maldivian President concludes state visit to Sri Lanka
The President of the Republic of Maldives, Dr. Mohamed Muizzu, departed Sri Lanka on Wednesday morning (06) from the Bandaranaike International Airport, Katunayake, concluding a successful state visit to the country.
The visit by the Maldivian President and his delegation further strengthened the longstanding friendship and cooperation between the Maldives and Sri Lanka, while delivering a range of mutual benefits to the peoples of both nations.
This marked President Muizzu’s first state visit to Sri Lanka, during which several mutually beneficial areas of cooperation were agreed upon, underscoring the success of the visit.
Minister of Science and Technology, Krishantha Abeysena, Minister of Youth Affairs and Sports , Sunil Kumara Gamage, Member of Parliament Oshani Umanga, along with senior officials of the Ministry of Foreign Affairs, were present at the airport to bid farewell to the Maldivian President, the First Lady and the accompanying delegation.
(President’s Media Division)
News
Govt. draws flak over Rs. 500 mn excess Aswesuma payments
Close on the heels of the USD 2.5 mn theft from the Treasury, the Welfare Benefits Board has reported payment of nearly Rs 500 mn in excess to Aswesuma beneficiaries.
Public action group ‘Free Lawyers’ has raised the latest fiasco to come to light with Speaker Dr. Jagath Wickramaratne, while requesting that the Parliament, in line with its constitutional obligations, initiate an inquiry.
The letter, dated 06 May, signed by Maithree Gunaratne, PC, Attorney-at-Law Athula de Silva, and Rajith Keerthi Tennakoon, on behalf of ‘Free Lawyers’, has alleged that some of the Aswesuma beneficiaries have been paid twice while others received the additional/extra payment.
Responding to The Island queries, Tennakoon said that sheer negligence on the part of those responsible for public finance was shocking.
Alleging that the NPP government seemed to be operating outside basic rules and regulations pertaining to public finances, the former Governor asked the Speaker whether the wrongful Aswesuma payments had been made due to political appointments made at the expense of the experienced and competent staff. (SF)
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