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Eran calls for action to ensure social protection

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SJB MP Eran Wickremaratne yesterday said that the new tax policies introduced by the Prime Minister’s Office must be complemented with expenditure rationalisation to ensure social protection.Wickramaratne has said: The Prime Minister’s office announced new revenue policies that is a positive step towards reinstating the tax regime of the previous administration. While we welcome this reversal in policy, it must be noted that the initial tax cuts in 2019 by this administration was the first policy mistake that led to Sri Lanka’s first ever sovereign default and the economic crisis that has upended our country. Tax revenue dropped to a mere 7.7% of GDP by 2021 as a result of the disastrous tax cuts. Sri Lanka was cut out of the international capital markets as a result as credit ratings downgraded the country amidst the COVID-19 pandemic.

Sri Lanka has faced an issue of declining revenue despite continued growth for decades. This decline exacerbated an already precarious budget deficit and successive governments conveniently ignored this growing problem. Under the previous administration, we took this issue head-on with technical and financial assistance from the International Monetary Fund (IMF) as part of the Extended Fund Facility (EFF). As State Minister of Finance, I oversaw the implementation of the new Inland Revenue Act (IRA) as part of our fiscal consolidation program. One of the primary objectives of the IRA was to reduce room for discretion by ensuring transparent, objective tax criteria thereby reducing space for corruption and tax evasion. The Act minimized tax exemptions and loopholes thereby broad basing tax collection. It replaced open ended untargeted tax concessions with targeted investment related concessions. The Act also attempted to simplify the complex tax structure to facilitate compliance and increase penalties for non-compliance.

We are glad that the administration has finally heeded the call of the opposition parties, economists, and business leaders and reengaged with the IMF. However, the road to recovery is a long one and any more delays will only bring more hardship to the most vulnerable sections of our society. That is why these tax policies must be complemented with expenditure rationalization so that social protection mechanisms can be expanded. The need of the hour is to protect those on the brink of abject poverty and not to protect the rich from paying their fair share of taxes.



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Showers will occur at times in the Western, Sabaragamuwa, Central, North-western and Northern provinces and in Anuradhapura, Galle and Matara districts

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WEATHER FORECAST FOR 16 MAY 2026
Issued at 05.30 a.m. on 16 May 2026 by the Department of Meteorology

According to the today’s latest weather analysis, the low-pressure area located northeast of  Sri Lanka, still persists. The Department of Meteorology is continuously monitoring the behavior, development and path of the system.

Due to the influence of the above system, Showers or thundershowers will occur at times and cloudy skies are expected in the Western, Sabaragamuwa, Central, North-western and Northern provinces and in Anuradhapura, Galle and Matara districts. Fairly heavy showers about 75 mm are likely at some places in these areas. Showers or thundershowers may occur at a few places in the Uva and Eastern provinces after 1.00 pm.

The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.

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Lanka’s eligibility to draw next IMF tranche of USD 700 mn hinges on ‘restoration of cost-recovery pricing for electricity and fuel’

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The International Monetary Fund (IMF) said on Thursday that the completion of Sri Lanka’s combined Fifth and Sixth Reviews, under the Extended Fund Facility (EFF), remains subject to approval by its Executive Board, which is expected to meet in the coming weeks.

Addressing a media briefing, IMF Communications Department Director, Julie Kozack, said IMF staff and Sri Lankan authorities had reached a staff-level agreement on 09 April.

She noted that several prior actions must be completed before the programme can be submitted to the Executive Board, including the restoration of cost-recovery pricing for electricity and fuel, measures to protect vulnerable groups, and the completion of financing assurances.

Upon Board approval, Sri Lanka would gain access to approximately US$700 million in financing, Kozack said.

Responding to a question on whether the government’s fuel subsidy scheme — including the Rs. 100 per litre diesel subsidy — was consistent with the IMF’s pricing framework, Kozack declined to comment directly on the measure. However, she reiterated that the programme requires both cost-recovery pricing reforms and safeguards for vulnerable communities.

Kozack also observed that Sri Lanka had recently faced “two very large shocks”, referring to Cyclone Ditwah and the wider external impact of the Middle East conflict, which, she said, had affected both the economy and the public.

Despite these challenges, she said Sri Lanka’s reform programme was yielding positive results, citing strong fiscal performance in 2025, progress in debt restructuring, 5 percent economic growth, and inflation returning to positive territory following a period of deflation.

She reaffirmed the IMF’s commitment to supporting Sri Lanka’s reform agenda, stressing that the institution continues to work closely with the authorities to sustain economic stability and recovery.

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Sanath Nishantha’s brother sentenced to jail over assault case

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Former Arachchikattuwa Pradeshiya Sabha Chairman, Jagath Samantha, was yesterday sentenced to five-and-a-half years’ rigorous imprisonment by the Chilaw High Court after being found guilty of assaulting the Arachchikattuwa Divisional Secretary.

The court also ordered Samantha to pay Rs. 1 million as compensation to the victim, failing which he will serve an additional 24 months in prison.

The case had originally been filed against former State Minister Sanath Nishantha and his brother Jagath Samantha over the assault incident.

However, following the death of Sanath Nishantha, in a road accident on the Katunayake Expressway, on 25 January, 2024, only Samantha appeared before court for the proceedings.

The verdict was delivered after the High Court considered the evidence and submissions presented during the trial.

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