News
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 ✍️
Latest News
70,297 persons still in safety centers
The Situation Report issued by the Disaster Management Center at 06:00AM on 16th December 2025 shows that 70,297 persons belonging to 22,338 house holds are still being housed at 731 safety centers established by the government.
The number of deaths due to the recent disastrous weather stands at 643 while 183 persons are missing.

News
MEPA to crack down on marine polluters
… Warns would-be polluters of criminal prosecution, hefty fines and even blacklisting
The Marine Environment Protection Authority (MEPA) has warned that ship owners, operators and local entities responsible for marine pollution will face criminal prosecution, heavy financial penalties and possible blacklisting, MEPA Chairman Samantha Gunasekera said yesterday.
Gunasekera told The Island that Sri Lanka would no longer tolerate negligence and regulatory breaches that threaten the country’s marine ecosystems, coastal livelihoods and national economy.
“Any party that pollutes our seas—whether foreign vessels or local operators—should be prepared to face the full force of the law,” Gunasekera said. “There will be no room for excuses, delays or backdoor negotiations when marine pollution is involved.”
He said MEPA has intensified surveillance of major shipping routes, ports and environmentally sensitive zones amid rising maritime traffic through Sri Lankan waters, which remain among the busiest in the Indian Ocean.
by Ifham Nizam
News
SC delegation, headed by CJ Surasena, observes Indian Supreme Court in action
A 10-member delegation from Sri Lanka’s Supreme Court, headed by Chief Justice P. Padman Surasena, departed to New Delhi on the 11th of December, 2025, for an official visit to the Supreme Court of India as part of the ongoing official visit by the delegation to India.
The group was accorded a ceremonial welcome in the Court’s main hall, led by the Chief Justice of India (CJI) Surya Kant. CJI Kant told the assembled Judges that “the Indian judiciary was honoured to host” their Sri Lankan counterparts, expressing hope that the visit would be “meaningful and very constructive” and underscoring the “close emotional bonds” between the two countries.
The focal point of the programme was a special sitting of the Supreme Court. Chief Justice Surasena joined CJI Kant and Justice Joymalya Bagchi on the bench, presiding over the Court as a guest Justice. He was accompanied by nine other Supreme Court justices from Sri Lanka, who took seats in the well of CJI Kant’s courtroom to observe the day’s proceedings.
Supreme Court Bar Association President Vikas Singh formally greeted the delegation and praised Justice Surasena’s reformist efforts. Singh recalled the Sri Lankan Chief Justice’s own maxim, “If you want something you have never had, then you have got to do something you have never done”, highlighting the bold changes Surasena had introduced to modernise Sri Lanka’s Court system. Singh noted that these initiatives, particularly court digitization, were aimed at eradicating “the persisting problems of law delays” and streamlining case backlogs.
The Sri Lankan Judges spent the morning observing live Supreme Court proceedings in CJI Kant’s courtroom. This first-hand exposure to Indian court operations formed a key part of the programme’s judicial engagement. During the hour-long session, the visiting justices witnessed a range of cases on the Supreme Court’s roster, with Justice Surasena and the delegation following arguments from the front. The experience was designed to be immersive and following the hearing the Sri Lankan Judges were briefed on India’s own initiatives towards a digitalised court system, e-filing and case management systems.
The official programme then shifted to capacity-building and information exchange. In the early afternoon, Indian Supreme Court officials gave the Sri Lankan delegation detailed briefings on India’s technological initiatives. Court registrars demonstrated the e-filing system and other e-initiatives implemented by the Supreme Court of India. Additional presentations outlined the Court’s new case management systems and administrative reforms. These sessions highlighted how digital tools and better case-listing procedures have been used in India to increase efficiency. The Sri Lankan judges asked questions about India’s experience with electronic court records and the integration of technology in daily judicial work, reflecting their own interest in similar reforms back home.
The visit underscored the growing collaboration between the Indian and Sri Lankan judiciaries. Throughout the proceedings, both sides emphasised their shared legal traditions and mutual respect. As Chief Justice Surasena noted during the sitting, India is Sri Lanka’s “closest neighbour,” and historic links, even dating back to ancient epics, form the backdrop for today’s judicial dialogue. CJI Kant remarked that having the chief justices of two vibrant democracies together on the bench was a “significant moment” for the rule of law.
The Sri Lankan delegation continued its programme in Delhi on 12 December with a visit to the Delhi High Court and its International Arbitration and Mediation Centres. The exchange visit is expected to deepen judicial cooperation and provide practical insights for both courts. Officials on both sides say the engagement aimed at sharing best practices in court administration, reinforce legal ties and support ongoing reforms aimed at reducing case backlogs and delays.
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