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Experts warn of risks to Sri Lanka’s economic recovery without political consensus on key reforms

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Panelists from left: Vihanga Yasaratne (moderator), Rasika Jayakody, Rohan Masakorale and Attorney-at-Law Mangala Niyarepola

LDM hosts discussion themed “Sri Lanka: Doomed without consensus

The discussion organised by the Lanka Democratic Movement focused on the need for political consensus on crucial economic reforms in Sri Lanka. The speakers pointed out that without a common agreement on key reforms, Sri Lanka’s recovery and its ongoing programme with the International Monetary Fund (IMF) could be at risk. The speakers emphasised the importance of implementing these reforms without failure and adhering to a plan for a reasonable period of time.

The Convener of the Lanka Democratic Movement, Rasika Jayakody, explained that Sri Lanka is not in a position to move away from the IMF bailout package as the country is in a disastrous situation as far as the economy is concerned. Therefore, Sri Lanka did not have the luxury of choosing when it had the opportunity to negotiate with the IMF on better terms. The country had to pursue the IMF option after becoming a bankrupt nation, and now, it has to swallow a better pill. Jayakody emphasised that it’s crucial to implement these reforms without failing, and policymakers must understand the gravity of the situation and move in one direction for at least five years.

Economist Rohan Masakorale emphasised the importance of policy stability in Sri Lanka. Masakorale explained that the country brought its economy on the right track in 1977, and there was significant progress between 1977 and 1982. However, after that, the country lost its way, and the riots in July 1983 caused many global companies that were exploring their investment prospects in Sri Lanka to go to Thailand. Moreover, the war erupted, and Sri Lanka paid a heavy price.

The biggest downfall in Sri Lanka was the successive governments’ failure to ensure policy stability. Masakorale pointed out that the Janasaviya programme was a progressive attempt to alleviate poverty through sustainable means. However, the government that came to power in 1994 politicised it and created a programme that did not produce the desired results. Sri Lanka must understand the gravity of the crisis and take corrective steps with consensus. Today, India has privatised all its ports, and Sri Lanka made a mockery of the plans related to the Easter Container Terminal at Colombo Port. The country wasted three years debating various conspiracy theories, and now it’s paying a heavy price for that.

Attorney at Law and Chairman of Citizens for Accountable Governance (CAG), Mangala Niyarepola, emphasised the absence of a master plan in Sri Lanka’s economy. He explained that political parties can include any fairy tale in their election manifestos as there is no mechanism to hold them accountable for their promises. Therefore, they end up doing ad-hoc projects without any rational basis, and they can manipulate the media and change public opinion closer to the election. That’s why Sri Lanka has ended up in this mess.

Niyarepola emphasised that when there is no master plan, no rule of law, no mechanism to hold politicians accountable, and no transparency, no serious investor will come to the country. The majority of so-called investors coming to such a country could be driven by vested interests, which is a failure in the system that Sri Lanka must address. The country needs a grand master plan that has constitutional protection, an all-encompassing document prepared by experts and technocrats. Political parties should not be allowed to deviate from the master plan without a referendum, and an institutional framework must be set up to implement this master plan with the participation of the public. This is the only way Sri Lanka can drive the much-talked-about “system change.”

The panelists highlighted that not having a common consensus on key reforms could derail Sri Lanka’s recovery and its ongoing program with the International Monetary Fund (IMF).

However, achieving political consensus is no easy task in Sri Lanka’s current political climate. The absence of a master plan, policy stability, and transparency has resulted in ad-hoc projects and a lack of accountability. Political parties can manipulate the media and change public opinion closer to elections, which ultimately leads to a lack of trust in the government.

The current crisis in Sri Lanka’s economy demands immediate attention and action. The government and policymakers must prioritise achieving political consensus on crucial economic reforms, implementing them effectively and efficiently, and working towards a grand master plan that will protect Sri Lanka’s economic future. Without political consensus, Sri Lanka’s economy may continue to face instability and challenges that could have far-reaching consequences for the country and its people.



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UN asks govt. to vacate ‘remaining lands still occupied and used economically by the military’

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Volker Türk

Military-held land down to 9% in North and East

The Office of the High Commissioner for Human Rights (OHCHR) has said that the UN High Commissioner for Human Rights Volker Türk, during discussions with the Sri Lankan government, stressed the importance of releasing the remaining lands still occupied and used economically by the military.

OHCHR has included updated information provided by the government on land releases in its reports to the Human Rights Council, the OHCHR said.

OHCHR team member Jeremy Laurence said so in response to The Island query regarding the HC’s call for release of land which both serving and retired officers considered unfair.

The Island posed the following question to the HC’s office: “At the conclusion of the UNHRC Chief’s visit to Sri Lanka recently, one of the issues he raised was the failure on the part of the armed forces to vacate public and private property held in the Northern and Eastern provinces. However, the military insists that approximately 91% of the total land held at the time of the conclusion of military operations, in May 2009, had been released. We would like to know whether the UNHRC Chief hadn’t been briefed by the government of Sri Lanka or the UN Mission in Colombo on the vacation of approximately 91% of the land held by the military in 2009.

The Island contacted OHCHR as suggested by the UN Mission in Colombo.

The military pointed out that of over 24,000 acres held in the Jaffna and Kilinochchi sectors in 2009, less than 2,500 acres remained in their hands. “We are down to the bare minimum. Further reductions will pose major challenges,” one retired officer said.

By Shamindra Ferdinando

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Need to attend to sick wild elephants promptly discussed at high-level meeting

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A high-level discussion on the urgent treatment of sick wild elephants was held on Monday (July 7) at the Ministry of Environment under the patronage of Minister of Environment Dr. Dhammika Patabendi and Deputy Minister Anton Jayakody.

Senior veterinary officers representing the Wildlife and Zoological Parks Veterinary Officers’ Association participated in the discussion alongside Secretary to the Ministry of Environment Rohitha Udawawala and Director of Veterinary Services of the Department of Wildlife Conservation Dr. Tharaka Prasad.

The focus of the meeting was to streamline rapid response measures to treat elephants suffering from illnesses in the wild and to ensure timely access to life-saving antibiotics and medical resources.

Commenting on the need for swift intervention, Environment Minister Dr. Dhammika Patabendi said:

“We cannot allow delays when it comes to the treatment of our wild elephants, especially those suffering from life-threatening conditions. These majestic creatures are an integral part of our natural heritage, and it is our duty to act fast. We are committed to providing our veterinary officers with the tools, resources, and policy support necessary to carry out this responsibility efficiently.”

Discussions also focused on identifying infected elephants promptly, administering treatment without delay, and addressing any shortages in medical supplies such as antibiotics. The officials explored avenues to ensure logistical and infrastructural support for veterinarians working in the field.

Significant attention was drawn to the existing cadre shortages within the Department of Wildlife Conservation’s veterinary and technical teams. Plans were discussed to address these gaps with the approval of the Department of Management Services and the Ministry of Public Administration.

Additionally, the need to provide field veterinarians with appropriate technical facilities and mobility support was emphasized as a key priority in enabling effective on-ground operations.

The meeting concluded with an understanding that urgent procedural and administrative steps would be taken to fast-track recruitment, supply of medication, and operational improvements necessary to protect the health of Sri Lanka’s wild elephant population.

By Ifham Nizam

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Navy seizes contraband pesticides and seeds in Puttalam and Kalpitiya

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The Navy detected a significant haul of smuggled pesticides and seeds during operations conducted in Puttalam and Kalpitiya from 20 to 30 June, 2025. The separate operations also resulted in two dinghies and a lorry also being taken into custody, Navy Headquarters said.

In a search operation on 20 June, the Northwestern Naval Command’s SLNS Vijaya inspected a suspicious lorry near Alankuda Beach, Puttalam, resulting in the vehicle, along with 32 sacks of pesticide materials and seeds suspected to have been smuggled into the country, being taken into custody.

On 28 June, during another search near Ippantivu Island, Kalpitiya, naval personnel spotted and took into custody two dinghies carrying 15 sacks of pesticide materials intended for smuggling.

It is suspected that the smugglers abandoned the contraband, along with the lorry and dinghies, due to heightened naval surveillance. The seized items were handed over to the Katunayake Customs Preventive Office for further investigation and legal action.

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