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Ex-CBSL Chief backs IMF conditions for resumption of bailout process

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Dr. Indrajith Coomaraswamy (L) / Prof. Ranjith Bandara (R)

… asks for early cross-party consensus

By Shamindra Ferdinando

Former Governor of the Central Bank Dr. Indrajith Coomaraswamy yesterday (11) threw his weight behind the International Monetary Fund’s (IMF) call for far reaching measures meant to stabilize the economy. The Washington headquartered lending agency recently suspended the US 2.9 bn bailout package, pending an agreement on 16 specific recommendations.

Dr. Coomaraswamy said: “There is a strong case for tabling the IMF’s GDA (Governance Diagnostic Assessment) in Parliament with a view to obtaining cross-party consensus on implementing the recommendations contained therein, in accordance with the laws of the country.” The economist said so in response to The Island query whether the Wickremesinghe-Rajapaksa government should heed the IMF advice in this regard.

Dr. Coomaraswamy said: “The relevant Parliamentary Committees can then have oversight of the implementation of the process. Civil society and business associations should also play an active role in advocating implementation and then monitoring its progress.”

Dr. Coomaraswamy served as the Central Bank Governor since July 2016 till Gotabaya Rajapaksa assumed the presidency in November 2019. He was brought in place of Arjuna Mahendran who was denied an extension in the wake of Treasury bond scams perpetrated in February 2015 and March 2019.

Top SJB spokesperson Dr. Harsha de Silva said that the IMF report is nothing but an indictment on Sri Lanka at every level and the most significant roadblock to financial recovery lies in the country’s persistent failure to address its deep-rooted corruption.

Dr. de Silva emphasised that the country wouldn’t get another opportunity to resume the recovery process if the government sought to avoid the IMF’s recommendations by taking cover behind technical issues.

The following are the IMF’s demands (1) Establishment of an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), (2)

Disclosure of asset declarations of senior officials by July 2024, (3) Enactment of proceeds of crime legislation by April 2024, (4) Amendment of the National Audit Act, (5) Finalization of implementation of regulations for beneficial ownership information and creating a public registry by April 2024, (6) Enactment of Public Procurement Law by December 2024, (7) Publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition, (8) Requiring the publication of all public procurement contracts above LKRs 1 billion, (9) Implementing the State-Owned Enterprise Reform

Policy to ensure ethical management, (10) Abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating pro-posals is established, (11) Amending tax legislation to prevent unilateral tax changes without parliamentary approval, (12) Implementing short-term anti-corruption measures within revenue departments to enhance oversight and sanctions, (13) Exploring options for new management arrangements for the Employees Provident Fund to avoid conflicts of interest, (14) Revising legislation, regulations, and processes for stronger oversight in the banking sector, (15) Establishing an online digital land registry and ensuring progress in registering/titling-state land and, (16) Expanding the resources and skills available to the Judicial Service Commission to strengthen justice.

Asked whether he had the blessings of the SJB parliamentary group in this regard, Dr. de Silva said that his declaration of support for the IMF’s proposals in Parliament was done with the backing of his party. A long delay in reaching consensus on this matter could be catastrophic, the Colombo District lawmaker warned no one should seek political mileage out of the continuing political, economic and social crisis.

SLPP National List member Prof. Ranjith Bandara, Chairman of the parliamentary watchdog committee COPE said that actually Sri Lanka should have adopted these measures years ago. The academic said that there couldn’t be any dispute over the need to implement IMF proposals meant to stabilize the situation. It would be a grave mistake on our part to believe the IMF’s proposals were the panacea for all our ills but proper implementation would definitely improve setup thereby providing the powers that be the time and space to undertake long term solutions.

Dr. Bandara found fault with the political party setup that conveniently failed to address the impending crisis years ago. Responding to another query, Dr. Bandara said that Sri Lanka should implement IMF proposals because they should have been carried out anyway.



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Wijepala claims Pillayan had prior knowledge of Easter Sunday attacks

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Minister Wijepala

Minister of Public Security Ananda Wijepala informed Parliament yesterday that Sivanesathurai Chandrakanthan, also known as Pillayan, had prior knowledge of the 2019 Easter Sunday attacks while he was in custody at the Batticaloa Prison.

“We have evidence to prove that he had prior knowledge of the attacks,” the Minister said.

The ministerial statement was made during an adjournment debate, as the Minister updated Parliament on the progress of investigations into the Easter Sunday bombings.

Wijepala also highlighted a related incident that occurred on 30 November, 2018, in which two police officers were killed in a shooting and stabbing attack. During the investigation into that incident, a former LTTE member, named Ajantha, was arrested after allegedly confessing to the crime.

However, Minister Wijepala said that findings of a CID probe had revealed Ajantha had been falsely implicated. A riding jacket, belonging to him, had been used to frame him, misleading CID officers into believing that the attack had been carried out by a former LTTE member.

Wijepala confirmed that an intelligence officer had been arrested in connection with the case. Further arrests are expected as investigations continue.

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Sri Lanka back to its high poverty levels

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From L to R: Yvette Fernando (Former Senior Deputy Governor at CBSL), Dr. Ganeshana Wignaraja (Convener of the Independent Growth Study Group), Dr. Sirimal Abeyratne (Executive Director CEPA), Dr. Dirk Willem te Velde (Director, ODI Global International Economic Development Group)

Sri Lanka’s estimated poverty (share of the population living on less than $3.65 a day) remains stubbornly high, affecting as much as a quarter of the population in 2024, and twice as high as in 2021. The reversal in poverty reduction gains during the crisis has taken Sri Lanka back to its high poverty levels of the early 2000s, finds a new study by the Centre for Poverty Analysis(CEPA).

The report, launched on Tuesday in Colombo, says: The economy has stabilised remarkably well since weathering its worst economic crisis since Independence, but there are substantial risks of a relapse. The country now needs to continue with macroeconomic stabilisation and implement a range of growth policies, with a new focus on state capacity.

The report, titled ‘Sustaining Transformative Growth in Sri Lanka 2025–2030’, offers a bold roadmap for Sri Lanka to achieve sustainable and inclusive economic growth over the coming five years. Authored by an Independent Growth Study Group, under the auspices of ODI Global and the CEPA, the report provides critical policy recommendations for navigating the country’s complex economic landscape as it emerges from its worst economic crisis since independence.

Developed by a team of nine leading experts, with extensive experience across public, private, and international sectors, the report highlights the significant progress made in stabilising the Sri Lankan economy, including renewed growth and reduced inflation. However, it stresses that the persistent challenge of high poverty levels requires a focus on economic transformation with structural reforms and targeted sectoral policies to mitigate future risks and unlock the nation’s vast potential.

Dr Ganeshan Wignaraja, Visiting Senior Fellow at ODI Global and Convenor of the Independent Growth Study Group, said: “Sri Lanka has shown remarkable resilience in overcoming recent economic hardship, but the journey towards prosperity requires more than resilience – it demands bold action. This report provides a crucial framework, not just for consolidating the hard-won gains of stabilisation, but for igniting truly transformative growth that uplifts all Sri Lankans. The opportunity is here, and we must act decisively to create a more inclusive and resilient economy.”

The study identifies six key policy areas as crucial for achieving sustainable growth: maintaining macroeconomic stability, integrating into global supply chains, improving factor markets, implementing targeted sectoral policies, reducing poverty and building political consensus. It also highlights key sectors poised for growth, including tourism, the digital economy, niche manufacturing and agriculture, driving the economic transformation of Sri Lanka in the future.

Prof. Sirimal Abeyratne, Executive Director of CEPA and a co-author of the report, emphasised the critical role of trade in this transformation: “Sri Lanka’s historical under-performance in exports is directly linked to a persistent anti-export bias and cumbersome business regulations. Our findings underscore that strategically opening up to global trade and rigorously streamlining business procedures are not just options, but essential accelerators to boost exports, stimulate investment and unleash the full potential of Sri Lankan businesses on the international stage.”

Prof. Dirk Willem te Velde, Director of the International Economic Development Group at ODI Global, said: “In today’s volatile global economy, Sri Lanka’s experience serves as a powerful lesson for recovery from deep economic crisis, setting an example for other emerging economies facing similar challenges. Our study argues how targeted policies for trade and production, innovation and digital economy, and governance can transform the country’s economic landscape and avoid further macro-economic crises. This report is a call to action for all stakeholders – government, business, civil society and citizens alike – to work together towards a shared vision of a prosperous and transformed Sri Lanka.”

The report urges a concerted effort to leverage Sri Lanka’s strategic location and build on existing production capabilities to drive growth and reduce poverty. It emphasises the importance of strategic engagement with global and regional supply chains and the digital economy to boost exports and attract foreign investment.

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Speaker to convert his official residence into knowledge centre for all elected representatives

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Dr. Jonathan Murphy, Head of the Inter Pares Global project implemented by the European Union, and Ingrid Walker, Programme Manager of Inter Pares, with Speaker Dr. Jagath Wickramaratne, at the meeting

Speaker Dr. Jagath Wickramaratne has stated that the official residence of the Speaker would be transformed into a knowledge centre providing information to all Members, representing all layers of governance in the country, the Parliament Media Division said yesterday.

He said that this centre was intended to impart essential knowledge to Members of Local Authorities, Provincial Councils, and Parliament on subjects such as international relations, fiscal policy, and governance. The Speaker also revealed that it is proposed to develop this centre into a national and international-level research institution that supports both qualitative and quantitative research.

The Speaker said so during a recent meeting held on Monday (07) at Parliament with a delegation from the European Union, including Dr. Jonathan Murphy, Head of the Inter Pares Global project, implemented by the European Union, and Ingrid Walker, Programme Manager of Inter Pares.

The Secretary General of Parliament, Kushani Rohanadeera, and Assistant Secretary General Hansa Abeyratne also attended this meeting.

The delegation of the Inter Pares Global project of the European Union, which focuses on strengthening parliamentary capacity, met with the Speaker on 7th July 2025, the opening day of a four-day programme organised at the Parliament of Sri Lanka.

The delegation stated that the primary objectives of the programme are to provide the necessary knowledge to enhance legislative activity, oversight, financial, and administrative functions of the Sri Lankan Parliament and to facilitate experience sharing.

During the meeting, discussions were also held on various other areas of focus. Commenting on parliamentary committees, the Speaker briefed the delegation on the activities carried out by the Committee on Public Enterprises (COPE) and the Committee on Public Accounts (COPA). He further explained that, in addition to the current technical assistance, measures have been taken to obtain legal support for these committees.

The Speaker further emphasised that Parliament aimed to take accurate decisions to accelerate the country’s development process while taking strict action against corruption.

Accordingly, the delegation is scheduled to meet with heads of various departments and divisions of Parliament from 7th to 11th July, to engage in the exchange of ideas.

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