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IMF diagnostic on Lanka damning verdict – Harsha

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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.



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Environmentalists warn Sri Lanka’s ecological safeguards are failing

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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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IGP warns cops against presenting hampers or gifts to superiors

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IGP Priyantha Weerasooriya has issued a letter, warning police officers against presenting gifts to senior officers during festivals or special occasions.

The letter, dated December 24, notes that some officers have reportedly offered hampers to senior officers during events such as the New Year and Sinhala and Hindu New Year, and some senior officers have accepted them.

The IGP has stressed that no officer should present hampers to him or any other senior police officer under any circumstances, and that senior officers must not accept such gifts.

Instead of in-person visits or physical gifts, officers have been instructed to convey their greetings through phone calls or WhatsApp messages, with personal visits deemed unnecessary.

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Ravi K urges slash of politicians’ perks to fund national relief and reconstruction

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MP Ravi Karunanayake speaking to the media on Thursday

NDF MP Ravi Karunanayake has called for the savings from MPs’ insurance coverage and allowances to be redirected to a relief fund for the public.

Addressing a press conference in Colombo on Thursday, Karunanayake stressed that the coverage reserved for MPs should be withdrawn and the funds transferred to a welfare and disaster relief fund. He mphasised that money allocated for double-cab vehicles for politicians should also be diverted to the national reconstruction fund at this critical time.

Highlighting the country’s ongoing economic and crisis situation, Karunanayake said that public representatives and senior state institutions must make significant sacrifices, and the perks and insurance benefits of MPs should be used for the welfare of the people.

He underlined that the task of rebuilding the country must start with the politicians themselves.

Commenting on state institution inefficiencies, he stated:

“Bonuses and allowances paid to officials of loss-making institutions such as SriLankan Airlines must be immediately stopped. Those funds should be redirected for the welfare of ordinary citizens currently under severe hardship—this is the responsibility of the government.”

Regarding Sri Lanka’s current foreign currency reserves, Karunanayake pointed out that, relative to their expenditure, there is no mechanism in place to replenish them—a serious problem. He urged that export performance be increased rapidly. He also suggested that renewable energy be used instead of oil-based electricity generation to save foreign exchange.

Karunanayake further revealed that, given the country’s ongoing disaster conditions, sufficient foreign aid has not yet been received. He recalled that the sixth tranche of the International Monetary Fund (IMF) was due to be received in December and stated that obtaining relief in installments would be more beneficial to the country than seeking emergency loans.

On dealing with the IMF, he added:

“Even if the IMF comes through under Ranil Wickremesinghe, we must ensure we engage properly and clearly with them. We must stick to our terms and execute them without confusion or compromise.”

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