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Economic crisis: Patali calls for punitive action against errant politicians, officials

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MP Ranawaka addressing the Colombo convention of Eksath Janaraja Peramuna (EJP) at New Town Hall on 01 July

Parliament disregarded COPE recommendation for PSC

By Shamindra Ferdinando

Eksath Janaraja Peramuna (EJP) leader and SJB MP Patali Champika Ranawaka, MP, has called for the setting up of a special commission to investigate those who bankrupted the economy.  Ranawaka said that those who had served as Finance Ministers, Governors of the Central Bank and members of the Monetary Board should be held accountable. He said so addressing the Colombo District convention of the EJP at the New Town Hall, Colombo on Saturday (01).

MP Ranawaka, who has served as a member of the Cabinet under President Mahinda Rajapaksa and Maithripala Sirisena, accused a group of politicians, officials and influential businessmen of causing the economic ruin. He alleged that the group had caused immense harm to the ordinary people.

When the current economic crisis manifested itself in 2020, Prof. W. D. Lakshman served as Governor of the Central Bank and Mahinda Rajapaksa held the Finance portfolio. The five-member Monetary Board at that time consisted of the then Treasury Secretary S. R. Attygalle, ex-top Central Banker Dr. Ranee Jayamaha, senior Attorney-at- Law Sanjeewa Jayawardena and leading businessman Samantha Kumarasinghe. Jayamaha and Jayawardena remain in the current Monetary Board.

The SLPP brought Basil Rajapaksa into the Cabinet as the Finance Minister in July 2021.Alleging that as many as one million families had been badly affected by the current crisis, MP Ranawaka pointed out that none of those responsible for the crisis had been punished.

Flaying the Wickremesinghe-Rajapaksa government for the unprecedented heavy burden imposed on the Employees Provident Fund (EPF) in terms of the now approved Domestic Debt Optimisation (DDO) programme, Ranawaka claimed such action eroded public confidence in the country’s largest fund.Against the backdrop of growing protests against the newly unveiled social security scheme ‘Aswesuma,’ MP Ranawaka called for a genuine effort to identify those who really needed government assistance.

The EJP leader also explained the ongoing efforts to expeditiously expand the party network over the next few months and to cover the entire Colombo district. Declaring that by September this year the EJP would complete district conventions, the former minister said that the Colombo convention would be followed by meetings in Gampaha and Kandy.

During SLPP National List lawmaker Prof. Chritha Herath’s tenure as the Chairman of COPE (Committee on Public Enterprises), the parliamentary watchdog committee called for a thorough inquiry to identify those responsible for the flawed economic decisions.

In May 2022, COPE recommended that a Special Parliamentary Select Committee (PSC) be appointed to probe the reasons for the economic crisis as well as all the officers who had neglected their duties to pave the way for the crisis.

MP Herath is on record as having said that particular COPE meeting decisions taken by a few had negatively impacted the entire country and the investigation needs to be expedited considering the matter as a criminal act. The parliament ignored Prof. Herath’s recommendation and a few months later he was replaced by Dr. Ranjith Bandara.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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