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DEW says most countries struggling to overcome worst-ever economic crisis

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… 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.



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Former first lady Shiranthi Rajapaksa arrested by CIABOC

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Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was  produced before the Hulftsdorp court, after  being  arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce

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U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit

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The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.

The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.

The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.

The ship previously made a port call in Sri Lanka on 27 August 2025.

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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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