News
IMF diagnostic on Lanka damning verdict – Harsha
In a scathing indictment of Sri Lanka’s governance landscape, the International Monetary Fund (IMF) had handed down a damning verdict, Samagi Jana Balawegaya (SJB) MP Harsha de Silva told Parliament on Wednesday.
Discussing the contents of the IMF’s Governance Diagnostic Assessment report, he said that the IMF’s verdict was clear: corruption had eaten into all state institutions from top to bottom.
MP de Silva said that one of the main reasons for the delay in disbursing the second tranche of IMF funds was the shortfall in government revenue as well as the sluggish progress in foreign debt restructuring. However, perhaps the most significant roadblock to financial recovery lies in the government’s persistent failure to address its deep-rooted problem of corruption, he said.
The SJB MP urged the Sri Lankan government to swallow the bitter medicine it so desperately needs. With a history of approaching the IMF for assistance a staggering 16 times without lasting success, Sri Lanka now had to adopt comprehensive reforms. The government must seize the opportunity to eliminate corruption and pave the way for a meaningful change, Dr. de Silva said.
The IMF has laid out a rigorous 16-point plan, a blueprint for Sri Lanka’s revival. Those directives, while formidable in scope, were essential steps towards transparency and accountability, the MP said.
They include establishing an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Dr. de Silva said: “This committee will ensure that the nominations for key anti-corruption positions are not influenced by political interests, which is a critical step in tackling corruption.”
Another IMF recommendation is publishing asset declarations for senior officials by July 2024, an act that brings much-needed transparency, with only 12 out of 225 MPs having disclosed their assets.
“This move will shed light on potential conflicts of interest among top government officials, promoting accountability and integrity,” said Dr. de Silva.
The following are among the IMF recommendations: Enacting Crime legislation by April 2024 to align with international standards, combating money laundering and illicit financial activities, amending the National Audit Act to hold officials accountable for the use of public resources, finalising and implementing regulations for beneficial ownership information and creating a public registry by April 2024, publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition, requiring the publication of all public procurement contracts above LK 1 billion and other critical financial information on a designated website, implementing the State-Owned Enterprise Reform Policy to ensure ethical management, abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating proposals is established, and enacting a Public Procurement Law by December 2024, addressing the alarming procurement and corruption issues.
Harsha de Silva said: “It is quite evident the failure in procurement and corruption with the mess that’s going on in the Ministry of Health with emergency procurement but yet no action was taken. If one may recall what happened at COPF not too long ago, when a tax holiday was given to one company for 17 years, I asked only one question: What is the benefit or revenue generated to the government? But they were unable to answer that; they removed me as the Chair of the COPF. Now, the IMF has made it mandatory to reveal the cost of such tax holidays.”
MP de Silva said Sri Lankan citizens were struggling to make ends meet while corruption remained unchecked. Professionals were fleeing the country; public trust in the government was eroding and that the IMF’s intervention was not a burden but a blessing.
“The ball is now in the court of Ranil Wickremesinghe and his SLPP government. Opposition to these measures is not an option, as they represent the only viable path forward. The IMF’s directives are a lifeline, an opportunity for Sri Lanka to cleanse its system, regain trust, and pave the way for a brighter future,” Dr. de Silva said.
News
Probe into Chinese exit from Cable Car Project
Environment Minister Dammika Patabedi said yesterday he had ordered an inquiry into the withdrawal of China-based Amber Adventures (Private) Ltd., from the Ambuluwawa Cable Car Project.Addressing the media, the Minister said the Environment Ministry had no direct agreement with the company, as the project was under the purview of the Board of Investment (BOI).
He said construction activities within the Ambuluwawa Environmental Zone had been suspended following complaints from environmental organisations in the aftermath of Cyclone Ditwah. All constructions in high-risk areas, he said, had been halted pending clearance by the National Building Research Organisation (NBRO).
According to the Minister, complaints had been received that construction at Ambuluwawa was continuing without NBRO clearance.
In response, the Ministry instructed the Central Environmental Authority (CEA) to conduct an investigation and thereafter construction activities were suspended pending a technical assessment by experts.
The Ministry of Environment subsequently ordered the immediate suspension of all construction activities within the Ambuluwawa Environmental Zone until the assessment was completed, he said, adding that work could resume if expert evaluations cleared the project.
Following the suspension, Amber Adventures (Private) Ltd,, described as the country’s first cable car venture, formally withdrew from the project, citing what it termed “regulatory obstruction and arbitrary state action.”
The company, a major Chinese investor in the project, proposed as Sri Lanka’s first cable car initiative with both Chinese and American investment, officially informed the BOI of its decision on Wednesday (14). In a letter to the BOI, the company said it had obtained all required permits and approvals in line with BOI procedures but faced repeated disruptions that resulted in significant financial losses.
Company Director Yuan Yuping warned that legal action would be pursued at the International Court of Arbitration to recover losses incurred due to the suspension of the project, citing continuous interruptions and government decisions as the cause.
Meanwhile, the Ambuluwawa Trust Board said the withdrawal of investors from the project was a major loss to the country, noting that it was regrettable that decisions had been taken without proper investigation, based on allegations by parties lacking a clear understanding of the facts.
It warned that halting a large-scale project of that nature would result in the loss of direct and indirect employment opportunities, as well as income sources for communities in the surrounding areas.
By Chaminda Silva and SK Samaranayake ✍️
News
Buddha statue issue: monk refuses meals in remand prison
Balangoda Kassapa Thero, held in Trincomalee remand prison over alleged violations of the Coastal Conservation Act, reportedly refused meals yesterday (15).
Prison authorities, however, said it could not be confirmed whether the monk’s action amounted to a hunger strike. Prison Media Spokesperson A. C. Gajanayake added that an official statement on the matter would be issued today (16).
The monk and eight others were remanded until 19 Jan by the Trincomalee Magistrate’s Court over allegations of unauthorised construction of a shelter to place a Buddha statue at the Sri Sambuddha Jayanthi Bodhiraj Viharaya. Prison sources said Thero had also declined food brought from outside.
The case follows reports to the court by the Trincomalee Harbour Police that unauthorised constructions had been carried out, despite instructions from the Court of Appeal to resolve the dispute peacefully.
by Chaminda Silva ✍️
News
‘Lanka faces food crisis’ :FAO calls for $16.5m aid
The Food and Agriculture Organization of the United Nations (FAO) Headquarters in Rome issued an appeal calling for international assistance of USD 16.5 million to support the early recovery of livelihoods and food security for farming, livestock-keeping and fishing communities affected by Cyclone Ditwah in Sri Lanka, FAO said yesterday.
Cyclone Ditwah represents one of the most severe climate shocks the country has faced in decades, affecting all 25 districts and disrupting the lives and livelihoods of more than 2.2 million people. Over 1.1 million people are now in urgent need of food security, agricultural and nutrition assistance, at a time when vulnerabilities were already heightened by prolonged economic pressures.
The cyclone struck at the onset of the critical Maha 2025/26 cultivation season, causing widespread damage to agriculture, livestock and fisheries. Floods inundated more than 129 000 hectares of agricultural land, affecting over 227 000 farming households. Standing water, debris, siltation and damaged irrigation systems are delaying replanting, while shortages of seeds, fertilizers and access to machinery threaten to result in irreversible production losses if immediate support is not provided.
Livestock and fisheries losses have further compounded the crisis. More than 37 000 cattle and buffaloes, nearly 16 000 goats and sheep, and 475 000 poultry have been lost, while damage to fisheries and aquaculture is estimated at USD 66–69 million, undermining both food availability and household incomes.
“This appeal focuses on early recovery interventions that are urgently needed to stabilize livelihoods and safeguard food production.,” said Vimlendra Sharan, FAO Representative for Sri Lanka and the Maldives. “While the overall requirements for the agrifood sector to fully rebound are substantially higher, immediate early recovery support is critical to prevent long-term losses, deeper food insecurity and increased reliance on food assistance.”
Issued by FAO Headquarters in Rome, the appeal targets 256 000 households (approximately 1.03 million people) across the Central, Eastern, North Central, North Western, Northern, Uva and Western Provinces. The USD 16.5 million requirement reflects priority early recovery actions, designed to rapidly restore productive capacity and protect livelihoods.
FAO’s planned interventions include:
Restoring crop production by providing seeds, fertilizers and essential agricultural inputs to smallholder farmers;
Safeguarding livestock assets through emergency animal health services, vaccines, veterinary kits and poultry restocking;
Supporting fisheries and aquaculture livelihoods through the repair or replacement of damaged boats and fishing gear; and
Providing cash-based assistance, including cash-for-work, to meet immediate needs, support livelihood restoration and enable debris clearance where markets are functioning.
FAO is working closely with the Government of Sri Lanka, particularly the Ministry of Agriculture, Livestock, Land and Irrigation and the Ministry of Fisheries, Aquatic and Ocean Resources. FAO also co-leads the Food Security and Livelihoods Sector alongside the World Food Programme and coordinates its response with the Sri Lanka Humanitarian Priorities Plan – Cyclone Ditwah.
To date, USD 400 000 has been received, leaving a 97.6 percent funding gap. Without urgent donor support, hundreds of thousands of households risk missing an entire cultivation season, with lasting consequences for food security, nutrition and rural resilience.
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