News
IMF end-of-mission report highlights ‘corruption vulnerabilities’ in Sri Lanka
By Sanath Nanayakkare
The International Monetary Fund (IMF) personnel that remained in Sri Lanka for ten days from 20-30 June to study the exact reasons for the current economic crisis in the country and design a comprehensive economic programme have stressed the need to reduce ‘corruption vulnerabilities’ in Sri Lanka.
The need for tackling corruption has been listed right below the IMF’s concerns about containing rising levels of inflation and addressing severe balance of payments (BOP) pressures of the country.
Anne-Marie Gulde-Wolf, Deputy Director of the IMF’s Asia and Pacific Department, participated in policy discussions. At the end of the mission, Messrs. Breuer and Nozaki issued the following statement:
“Sri Lanka is going through a severe economic crisis.
The economy is expected to contract significantly in 2022, while inflation is high and rising. The critically low-level of foreign reserves has hampered the import of essential goods. During the in-person visit, the team witnessed some of the hardships currently faced by the Sri Lankan people, especially the poor and vulnerable who are affected disproportionately by the crisis. We reaffirm our commitment to support Sri Lanka at this difficult time in line with the IMF’s policies.
“The authorities’ monetary, fiscal policy and other actions since early April were important first steps to address the crisis. The team had constructive and productive discussions with the Sri Lankan authorities on economic policies and reforms to be supported by an IMF Extended Fund Facility (EFF) arrangement. The staff team and the authorities made significant progress on defining a macroeconomic and structural policy package. The discussions will continue virtually with a view to reaching a staff-level agreement on the EFF arrangement in the near term. Because public debt is assessed as unsustainable, Executive Board approval would require adequate financing assurances from Sri Lanka’s creditors that debt sustainability will be restored.
“The authorities have made considerable progress in formulating their economic reform programme and we are looking forward to continuing the dialogue with them.”
The IMF team held meetings with President Gotabaya Rajapaksa, Prime Minister and Finance Minister Ranil Wickremesinghe, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury K M Mahinda Siriwardana, and other senior government and CBSL officials. It also met with MPs, representatives from the private sector, civil society organisations and development partners.
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Sun directly overhead Dehiwala, Maharagama, Pannipitiya, Padukka, Eheliyagoda, Maskeliya, Siyambalanduwa and Pottuvil at about 12:13 noon. today (07th)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year.
The nearest areas of Sri Lanka over which the sun is overhead today (07th) are Dehiwala, Maharagama, Pannipitiya, Padukka, Eheliyagoda, Maskeliya, Siyambalanduwa and Pottuvil at about 12:13 noon.
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Heat Index at Caution Level in the Northern, North-central, North-western and Eastern provinces and Monaragala and Hambantota districts.
Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre Issued at 3.30 p.m. on 06 April 2026, valid for 07 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western and Eastern provinces and Monaragala and Hambantota districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
News
SJB: Litro, Laugfs making a killing by selling old stocks at inflated prices
… as Lakvijaya falters, power plants need over 2 mn litres of fuel daily
By Shamindra Ferdinando
The SJB yesterday (06) said that the NPP government owed an explanation as to why Litro Gas Lanka Limited and Laugfs Gas PLC were allowed to increase the prices of old stocks of domestic gas. Litro and Laugfs have increased the prices of 12.5 kg cylinder by Rs. 775 to Rs. 4,765 and by Rs. 1,070, to Rs. 5,700, respectively.
Convener of the Samagi United Trade Union Force (SUTUF) and the Samagi Joint Trade Union Alliance Ananda Palitha said they were aware of the state-owned gas supplier Litro and the private sector enterprise making a killing at the expense of consumers.
Acknowledging that gas and fuel prices had to be increased in view of the disruptions to the regular supply route through Hormuz Strait, the former petroleum sector worker emphasised it wouldn’t be fair, under any circumstances, to apply a new pricing formula to old stocks.
Taking advantage of the new West Asia war, the government (CPC) and three foreign private suppliers, namely Lanka IOC, Sinopec and R.M. Parks, increased prices of old fuel stocks, Palitha alleged, adding that his accusations, previously reported in the front-page of The Island, haven’t been disputed.
Responding to our queries, Palitha pointed out that Sri Lanka experienced gas supply disruption even just before the eruption of the Iran war.
Warning that further electricity tariff increases were around the corner due to failure on the part of the country’s only coal-fired power plant Lakvijaya to produce the required electricity, Palitha blamed the developing crisis on the use of low-quality coal for power generation.
Referring to recent media reports of fuel powered power plants needing 800,000 litres, daily, to meet the shortfall due to the crisis at Lakvijaya, Palitha said that the actual requirement was much more. Kelanitissa Combined cycle power plant alone required 1.3 mn litres of diesel daily, Palitha said, alleging the country was paying a very heavy price for corruption and mismanagement by the current dispensation.
According to Palitha Kerawalapitiya (Yugadanavi) Combined Cycle Power Plant required 750,000 litres of black oil/furnace oil. Together, those two power plants, namely Kelanitissa and Yugadanavi, required over 2 mn litres per day, the trade unionist activist said, warning the government of frightening economic consequences.
Having explained the requirements of other power stations in operation, Palitha said that the situation was so bad that the CEB, about three days back, began buying fuel worth Rs 1.7 bn from the Ceylon Petroleum Corporation on credit. Responding to another query, Palitha said that though the Iran war was having a major impact here, the NPP should accept responsibility for the corrupt coal deal and horrendous mismanagement of the power sector.
The government sought to downplay the crisis, claiming that Sri Lanka received Indian and Chinese support to meet its energy requirements, Palitha said. However, foreign powers were exploiting the situation here to advance their agendas, Palitha added, urging the government to come out clean.
India was increasing its hold on Sri Lanka, the trade union activist said, noting that Sri Lanka had recently declared its intention to develop a section of the Trincomalee oil tank farm together with India. According to Palitha, Indian Prime Minister Narendra Modi himself had asked President Anura Kumara Dissanayake to fast-track the project.
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