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DEW says most countries struggling to overcome worst-ever economic crisis
… frowns on tax concessions to businesses
By Rathindra Kuruwita
Former General Secretary of the Communist Party, D.E.W. Gunasekera yesterday said three reasons had triggered Sri Lanka’s current economic crisis, which is considered the worst ever since Independence.
“There is a global economic crisis, and we are affected by it. Prices of most goods we import have gone up, and this is beyond our control. On the other hand, COVID-19 too has affected us immensely. Once production and transportation are affected prices go up,” he said.
Gunasekera said that there was also a global financial crisis and most countries were simply printing money to overcome it. The United States had printed trillions of dollars during the last two years and recently the US Congress had increased its debt ceiling by another two trillion dollars, Gunasekera said.
“These have caused inflation in the United States too. We are also facing inflation because we too have taken similar steps,” he said.
China is the biggest lender to the United States and despite the ‘cold war’ between the two nations Chinese are still buying most of the US bonds, the veteran Marxist said.
“China has the biggest dollar reserves in the world. They have over 4.5 trillion in dollar reserves. The reserves of the US is only the fifth in the world. China has more US dollars than the US. Most people are blind to this fact; politicians have no clue and economists who know this don’t reveal it. So, we are doing the same things over and over again,” he said.
The crisis in Sri Lanka was exacerbated by the fact that the country was ruled by the worst Cabinet in the parliamentary history of the country, Gunasekera said. The government did not know how to deal with the economic crisis, he added.
Gunasekera said the government provided tax concessions to businessmen 14 times so far, aggravating the economic crisis.
Latest News
Interment of singer Latha Walpola at Borella on Wednesday [31st]
Family sources have confirmed that the interment of singer Latha Walpola will be performed at the General Cemetery Borella on Wednesday (31 December).
News
Western Naval Command conducts beach cleanup to mark Navy’s 75th anniversary
In an environmental initiative commemorating the 75th anniversary of the Sri Lanka Navy, the Western Naval Command organized a cleanup programme at Galle Face Beach on Saturday (27 Dec 25).
The programme focused on the removal of substantial solid waste littering the beachfront, including accumulated plastic and polythene debris. All collected wastey was systematically disposed of utilizing methods designed to safeguard the sensitive coastal ecosystem.
Demonstrating a strong commitment to the cause, the cleanup effort saw the participation of the Commander Western Naval Area and a group of over 200 naval personnel.
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Environmentalists warn Sri Lanka’s ecological safeguards are failing
Sri Lanka’s environmental protection framework is rapidly eroding, with weak law enforcement, politically driven development and the routine sidelining of environmental safeguards pushing the country towards an ecological crisis, leading environmentalists have warned.
Dilena Pathragoda, Managing Director of the Centre for Environmental Justice (CEJ), has said the growing environmental damage across the island is not the result of regulatory gaps, but of persistent failure to enforce existing laws.
“Sri Lanka does not suffer from a lack of environmental regulations — it suffers from a lack of political will to enforce them,” Pathragoda told The Sunday Island. “Environmental destruction is taking place openly, often with official knowledge, and almost always without accountability.”
Dr. Pathragoda has said environmental impact assessments are increasingly treated as procedural formalities rather than binding safeguards, allowing ecologically sensitive areas to be cleared or altered with minimal oversight.
“When environmental approvals are rushed, diluted or ignored altogether, the consequences are predictable — habitat loss, biodiversity decline and escalating conflict between humans and nature,” Pathragoda said.
Environmental activist Janaka Withanage warned that unregulated development and land-use changes are dismantling natural ecosystems that have sustained rural communities for generations.
“We are destroying natural buffers that protect people from floods, droughts and soil erosion,” Withanage said. “Once wetlands, forests and river catchments are damaged, the impacts are felt far beyond the project site.”
Withanage said communities are increasingly left vulnerable as environmental degradation accelerates, while those responsible rarely face legal consequences.
“What we see is selective enforcement,” he said. “Small-scale offenders are targeted, while large-scale violations linked to powerful interests continue unchecked.”
Both environmentalists warned that climate variability is amplifying the damage caused by poor planning, placing additional strain on ecosystems already weakened by deforestation, sand mining and infrastructure expansion.
Pathragoda stressed that environmental protection must be treated as a national priority rather than a development obstacle.
“Environmental laws exist to protect people, livelihoods and the economy,” he said. “Ignoring them will only increase disaster risk and long-term economic losses.”
Withanage echoed the call for urgent reform, warning that continued neglect would result in irreversible damage.
“If this trajectory continues, future generations will inherit an island far more vulnerable and far less resilient,” he said.
Environmental groups say Sri Lanka’s standing as a biodiversity hotspot — and its resilience to climate-driven disasters — will ultimately depend on whether environmental governance is restored before critical thresholds are crossed.
By Ifham Nizam ✍️
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