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Gammanpila favours deal with IMF, says most ministers like minded
BY SHIHAR ANEEZ
ECONOMYNEXT – Sri Lanka should enter an deal with the International Monetary Fund, Petroleum Minister Udaya Gammanpila said as forex shortages delayed oil imports and power cuts were imposed as fuel supplies were disrupted.
“I have expressed my view that we should go to the IMF. Now most of the the cabinet ministers are for an IMF deal,” Minister Gammanpila told reporters on Friday. “The final decision has to be made by the Finance Ministry and the Central Bank.”
The CPC has been unable to buy dollars amid forex shortages triggered by liquidity injections made to enforce a 6.5 percent policy rate. Some of the liquidity injections are made to offset central bank dollar sales to the CPC itself.
An IMF program would force a rate hike and a float, which will end the money printing, allowing imports to match inflows.
Meanwhile ships were sometimes stuck at an offshore unloading point off the capital Colombo as banks and the utility scrambled for foreign exchange.
“A ship from Petro China has to keep waiting in sea for 11 days because we did not have dollars,” Gammanpila said. “We had to keep two ships like that.”
Two ships with petrol and diesel are expected to arrive Saturday.
“The Central Bank, People’s Bank, and Bank of Ceylon are trying their best to find us dollars,” Gammanpila explained. “The central bank has agreed to give us 60 million US dollars to clear two shipments coming tomorrow (Saturday). These dollars are now being collected and I hope it could be done by today. (Friday).”
The CPC had also got a 500 million US dollar credit line from India, which would be active from April. Earlier last week India sent a 40,000 litre shipment of oil ahead of the official launch of the credit line.
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Showers above 100 mm are likely at some places in the Eastern and Uva provinces and showers about 50-75 mm in other areas
WEATHER FORECAST FOR 08 JANUARY 2026
Issued at 05.30 a.m. on 08 January 2026 by the Department of Meteorology
The depression over the Bay of Bengal, located to the southeast of Sri Lanka, was centered near latitude 5.3°N and longitude 86.0°E, about 490 km southeast of Pottuvil, at 11:30 p.m. yesterday (07). It is expected to move west-northwestwards and towards the eastern coast of the island during next 24 hours. This system is likely to intensify further into a deep depression during the next 12 hours.
Cloudy skies can be expected over most parts of the island.
Showers or thundershowers will occur at times in the Northern, North-central, Eastern, Uva, Central and Southern provinces. Showers or thundershowers may occur at several places elsewhere in the Island after 1.00 p.m. Heavy showers above 100 mm are likely at some places in the Eastern and Uva provinces. Fairly Heavy showers about (50 – 75) mm are likely at some places in the other areas of the island.
Strong winds about (50-60) kmph can be expected at times over the Eastern slopes of the central hills, the Northern, North-central, North-western and Eastern provinces and in Hambantota, Gampaha, Colombo and Monaragala districts.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
News
Easter Sunday attacks: Govt. says wife of Katuwapitiya Church bomber alive
Minister of Public Security Ananda Wijepala told Parliament yesterday that information uncovered during ongoing investigations indicated that Pulasthini Mahendran, also known as Sara Jasmine, linked to the 2019 Easter Sunday terror attacks, was not dead.
Responding to a question raised by Opposition MP Mujibur Rahuman, the Minister said there was no confirmation that Sara Jasmine was currently in India, despite speculation to that effect. He added that investigators suspected she may have fled the country and stressed that further inquiries were underway to establish her whereabouts.
“If necessary, the government will take steps to obtain a warrant,” Wijepala said, noting that legal action related to the Easter attacks had already been initiated, based on available evidence.
Minister Wijepala said the new government had launched an thorough probe to determine whether a political or other conspiracy had been behind the attacks that killed more than 270 people in 2019. However, he declined to disclose certain details in Parliament, citing the risk of hampering investigations.
Sara Jasmine, Mohammed Hashtun, who bombed St. Sebastian’s Church, in Katuwapitiya, in 2019, was long presumed to have died in a suicide blast in Sainthamaruthu, days after the attacks. Wijepala said attempts by previous administrations to establish her death had failed, with recent reports indicating that DNA tests conducted at the time were inconclusive.
During the debate, MP Rahuman recalled that senior figures, including then-Opposition MP Nalinda Jayatissa, had previously claimed Sara Jasmine was in India. He questioned why authorities had not sought an open warrant for her arrest whether the issue had been raised in talks with Indian officials.
Wijepala, responding on behalf of Deputy Minister of Defence Arun Jayasekara, said the government would not hesitate to pursue legal action, including warrants, if necessary.
By Saman Indrajith
News
Indian Army Chief here
The Chief of the Indian Army Staff (COAS), General Upendra Dwivedi arrived in Sri Lanka yesterday (07). On arrival, the COAS was accorded a Guard of Honour by the Sri Lanka Army.
The Indian HC said that: “He will engage with senior military and civil leadership, including the Commander of the Sri Lanka Army, Deputy Minister of Defence and the Defence Secretary; and hold detailed discussions on matters of mutual interest, including training cooperation, capacity building and regional security.
During the visit, the COAS will address officers at the Defence Services Command and Staff College (DSCSC) and interact with officers and trainees at the Army War College, Buttala, reflecting India’s strong commitment to defence education and professional military exchanges with Sri Lanka.
General Dwivedi will also pay homage at the IPKF War Memorial, honouring the supreme sacrifice of Indian soldiers.”
General Dwivedi arrived here from the United Arab Emirates (UAE) where he attended several events during 05 to 06 January.
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