News
Harsha hints at Chinese hurdle in debt relief talks
By Saman Indrajith
SBJB MP Harsha de Silva said that he had asked the Gotabaya Rajapaksa administration to seek IMF assistance in 2020.
“At that time a U.S dollar was selling at Rs 200. The interest rates were around six percent. Inflation was around six percent. The situation is completely different today. Our interest rates are around 35 percent and the inflation is over 50 percent. Dollar sells at Rs 370. We have defaulted.”
No foreign nation or international institution had any faith in Sri Lanka, De Silva said.
“Now, we are begging the IMF to help us. The IMF will give us 2.9 billion dollars. It’s not the money that’s important but after we get the money other countries will think we are now following a viable plan to get out of the crisis. IMF and economic reforms are the two sides of the same coin,” he said,. When he suggested to the Rajapaksa administration to go before the IMF, the situation was simpler, de Silva said.
Then it would have been an agreement between Sri Lanka and the IMF.
“Now there are three parties, simply speaking. The government, the IMF, and our lenders. There are bilateral lenders like Japan, China, and India as well as private entities that have bought our bonds. If we can’t come to an understanding with the official creditors, the IMF can’t give us money. That’s their policy,” he said.
India has given a written financing assurance to the IMF in support of Sri Lanka’s economic revival. China has not yet given this assurance, the SJB MP said.
“China has not given these assurances because of two reasons. China says Sri Lanka has promised the IMF that by 2032, the country will reduce the debt ratio, compared to the GDP, to 95 percent. It is now around 140 percent. They are just not ready to accept we can do that,” he said.
Sri Lanka’s Gross Financing Need is 31 percent now, he said. This is one of the highest percentages in the world, de Silva said.
“We have told the IMF that we will reduce this to 13 percent by 2027. China also doesn’t think we can do that. They say they don’t really buy into the debt sustainable analysis that Sri Lanka and the IMF have agreed upon. Their EXIM bank has given us a letter saying that they will provide relief for another 10 months. During that time the two sides can talk about how debt can be restructured,” he said.
However, recently it was reported that there was a loophole that the IMF can use to give us money, De Silva said. That is, if one major lender does not agree on debt restructuring, the IMF can give a loan if the disagreeing lender has loaned less than 50 percent of total bilateral debt, he said.
“Chinese loans were about 53 percent of total bilateral debt. So by considering loans by EXIM bank as bilateral loans and by recategorizing loans by China Development Bank as commercial loans, we have reduced Chinese loan percentage to about 49 percent of total bilateral debt. The government is trying to use that loophole and access IMF money. However, on Wednesday the IMF said that they need Sri Lanka to come to an agreement with China. So this is where we are,” he said. .
News
Krrish case against Namal: Summons issued to two Indians
The Colombo High Court yesterday directed that summons be issued to two Indian witnesses in the case filed against SLPP MP Namal Rajapaksa over the controversial Krrish project transaction, following the procedure laid down by the Judicial Service Commission for summoning foreign witnesses.
High Court Judge Nadee Aparna Suwandurugoda issued the order when the Criminal Investigation Department (CID) informed court that efforts to contact the two witnesses had been unsuccessful.
The judge ordered that steps be taken to serve the summons in accordance with the established legal procedure applicable to witnesses residing overseas.
The Attorney General has filed the case alleging that MP Namal Rajapaksa committed an offence under the Prevention of Money Laundering Act by receiving Rs. 70 million from the Indian company Krrish, purportedly for promoting rugby in Sri Lanka.
The case was filed over the alleged misuse of funds received in connection with the Krrish project deal. The prosecution has claimed that the payment was obtained under the pretext of supporting rugby development. it alleged that the transaction amounted to a violation of the law.
The Colombo High Court in May ordered that the trial be taken up on July 7, following the conclusion of the pre-trial conference last month.
The court is expected to consider evidence from several witnesses during the proceedings, including the two Indian nationals for whom summons were ordered yesterday.
News
Kelaniya emerges as highest ranked Lankan uni in Times Higher Education Sustainability Impact Ratings
The University of Kelaniya has emerged as the highest-ranked university in Sri Lanka in the Times Higher Education Sustainability Impact Ratings 2026, securing a position in the global 401–600 band.
The achievement marks a significant milestone for the university’s ongoing efforts towards sustainability and excellence in higher education, with the ranking recognising its contributions through teaching, research, community engagement and institutional practices.
The ranking was based on evidence submitted by the University of Kelaniya and its research output during 2024 and 2025. The university recorded particularly strong performances in several United Nations Sustainable Development Goals (SDGs), including No Poverty (SDG 1), Gender Equality (SDG 5), Clean Water and Sanitation (SDG 6), and Partnerships for the Goals (SDG 17).
The Times Higher Education Sustainability Impact Ratings, formerly known as the THE Impact Rankings, is the only global university ranking system that evaluates institutions based on their contribution towards achieving the United Nations Sustainable Development Goals.
The 2026 edition assessed 1,646 universities from 116 countries and territories, measuring their performance across all 17 SDG categories as well as overall sustainability performance.
The University of Kelaniya’s recognition as the leading Sri Lankan university in the rankings highlights its commitment to integrating sustainability principles into academic activities, research initiatives and social responsibility programmes.
University authorities said the achievement reflects the institution’s continued focus on addressing global challenges through education, innovation and partnerships while contributing towards sustainable development at national and international levels.
News
Dayasiri calls for independent investigation into coal imports
SJB Kurunegala District MP Dayasiri Jayasekera yesterday alleged serious irregularities in the tender process for the supply of coal to Sri Lanka for the 2026/2027 period and called for an independent investigation into the matter.
Addressing the media in Colombo, Jayasekera asserted that the tender process had once again become controversial, with allegations that UAE-based Potentia FZCO had been allowed to qualify despite failing to meet key tender requirements.
The MP alleged that questions had arisen regarding the conduct of certain senior officials of the Lanka Coal Company and members of the Bid Evaluation Committee (BEC). He maintained that the transparency and fairness of the procurement process had been compromised.
Jayasekera said the tender procedure required all bidders to demonstrate an annual turnover of at least US$100 million for each of the preceding three consecutive years. However, he claimed that Potentia FZCO had provided evidence of such turnover for only two years, while the third year’s submission consisted of unaudited management accounts that had not been independently certified.
He alleged that another mandatory requirement, maintaining a minimum working capital of US$30 million, had not been met. According to Jayasekera, the company had shown only about US$4 million in working capital and had included nearly US$29 million expected to be received from the Lanka Coal Company for previous supplies in order to satisfy the requirement.
“The purpose of the working capital criterion is to establish the supplier’s independent financial strength, not future receivables,” he said.
Jayasekera also referred to a petition filed by Potentia FZCO before the Court of Appeal challenging the cancellation of an order for the supply of an additional 225,000 metric tonnes of coal under a previous contract. He noted that the petition had been dismissed by the Court of Appeal in June this year.
The MP stressed that Sri Lanka’s electricity generation depended heavily on uninterrupted coal supplies and that any weaknesses in the financial capacity of suppliers could pose a risk to the country’s energy security.
He called on the authorities to provide an immediate explanation and ensure a transparent investigation into the allegations. However, Jayasekera acknowledged that the claims relating to the tender evaluation process and the company’s qualifications remained allegations that required proper verification.
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