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Govt. vows to overhaul loss-making national airline
(AFP) President Anura Kumara Dissanayake vowed Friday to overhaul the country’s loss-making national airline after the government failed to find a buyer, in line with commitments under an IMF bailout.
Successive administrations have sought to sell SriLankan Airlines, which has been burdening the state budget, but Dissanayake told parliament there had been “no takers” despite sustained efforts to attract a foreign buyer.
The International Monetary Fund (IMF) granted a $2.9 billion bailout loan to Sri Lanka in 2023 and had insisted that loss-making state enterprises, including the carrier, should be restructured or sold to ease the strain on public finances.
The carrier, with accumulated losses nearing $2 billion by the end of March 2025, still has an outstanding $175 million sovereign-guaranteed bond awaiting rescheduling.
Dissanayake said the process was expected to be completed by year’s end.
“We will also restructure the management of SriLankan Airlines early next year,” Dissanayake told parliament while unveiling the 2026 budget for the country, which is emerging from its worst economic meltdown in 2022.
He said the management has been asked to formulate a credible business plan to salvage the carrier.
“Should the taxpayers carry the huge burden of SriLankan Airlines?” he asked, warning that if the reforms failed “alternative action” would follow, without elaborating.
The country defaulted on its $46 billion foreign debt in April 2022 after running out of foreign exchange.
The government was on track to resume repaying its own commercial external debt from 2028, thanks to better-than-expected export earnings and remittances, Dissanayake said.
He also proposed reducing the government’s borrowing limit by $200 million next year as the country’s debt burden is expected to gradually decline in the short term.
The IMF has said Sri Lanka’s reforms are paying off, but the country should maintain the momentum amid the “heightened downside risks” posed by global trade uncertainties.
Sri Lanka’s 2022 economic crisis led to months of street protests that eventually toppled then-president Gotabaya Rajapaksa.
The World Bank has warned that Sri Lanka’s recovery remains “uneven and incomplete”, with many households yet to regain livelihoods lost during the 2022 crisis.
by Amal Jayasinghe ✍️
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Environmentalists warn Sri Lanka’s ecological safeguards are failing
Sri Lanka’s environmental protection framework is rapidly eroding, with weak law enforcement, politically driven development and the routine sidelining of environmental safeguards pushing the country towards an ecological crisis, leading environmentalists have warned.
Dilena Pathragoda, Managing Director of the Centre for Environmental Justice (CEJ), has said the growing environmental damage across the island is not the result of regulatory gaps, but of persistent failure to enforce existing laws.
“Sri Lanka does not suffer from a lack of environmental regulations — it suffers from a lack of political will to enforce them,” Pathragoda told The Sunday Island. “Environmental destruction is taking place openly, often with official knowledge, and almost always without accountability.”
Dr. Pathragoda has said environmental impact assessments are increasingly treated as procedural formalities rather than binding safeguards, allowing ecologically sensitive areas to be cleared or altered with minimal oversight.
“When environmental approvals are rushed, diluted or ignored altogether, the consequences are predictable — habitat loss, biodiversity decline and escalating conflict between humans and nature,” Pathragoda said.
Environmental activist Janaka Withanage warned that unregulated development and land-use changes are dismantling natural ecosystems that have sustained rural communities for generations.
“We are destroying natural buffers that protect people from floods, droughts and soil erosion,” Withanage said. “Once wetlands, forests and river catchments are damaged, the impacts are felt far beyond the project site.”
Withanage said communities are increasingly left vulnerable as environmental degradation accelerates, while those responsible rarely face legal consequences.
“What we see is selective enforcement,” he said. “Small-scale offenders are targeted, while large-scale violations linked to powerful interests continue unchecked.”
Both environmentalists warned that climate variability is amplifying the damage caused by poor planning, placing additional strain on ecosystems already weakened by deforestation, sand mining and infrastructure expansion.
Pathragoda stressed that environmental protection must be treated as a national priority rather than a development obstacle.
“Environmental laws exist to protect people, livelihoods and the economy,” he said. “Ignoring them will only increase disaster risk and long-term economic losses.”
Withanage echoed the call for urgent reform, warning that continued neglect would result in irreversible damage.
“If this trajectory continues, future generations will inherit an island far more vulnerable and far less resilient,” he said.
Environmental groups say Sri Lanka’s standing as a biodiversity hotspot — and its resilience to climate-driven disasters — will ultimately depend on whether environmental governance is restored before critical thresholds are crossed.
By Ifham Nizam ✍️
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