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IMF end-of-mission report highlights ‘corruption vulnerabilities’ in Sri Lanka

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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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627 confirmed dead, 190 persons missing as at 6:00 a.m. today [08]

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The Situation Report issued by the Disaster Management Center at 0600hrs on 8th December 3035 confirms that 627 persons have lost their lives due to floods and landslide that occurred in the island during the past few days. The number of persons missing was 190.

 

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Showers expected in the Northern, North-Central, Eastern and Uva provinces and Batticaloa and Ampara districts

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WEATHER FORECAST FOR 08 DECEMBER 2025
Issued at 05.30 a.m. on 08 December 2025 by the Department of Meteorology 

The Northeast monsoon conditions are gradually establishing over the island. Showery weather condition is expected to enhance over the Northern, North-central and Eastern provinces from tonight.

Misty conditions can be expected at some places in the Western, Sabaragamuwa, Central and Uva provinces during the early hours of the morning.

Showers will occur at times in the Northern, North-Central, Eastern and Uva provinces. Fairly heavy showers  above 50 mm are likely at some places in the Batticaloa and Ampara districts.
Showers or thundershowers may occur at several places in other areas of the island after 1.00 p.m.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

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New landslide alerts as Ditwah aftermath worsens

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Death toll hits 627, over 2.17 mn affected across 25 districts

The Disaster Management Centre (DMC) has issued fresh landslide warnings as relentless heavy rains continue to pound regions still reeling from Cyclone Ditwah.

The Department of Meteorology has cautioned that thunderstorms accompanied by heavy rainfall are likely across parts of the Western and Sabaragamuwa provinces, as well as Galle and Matara districts. Rainfall is expected to intensify further on the 9th, 10th, and 11th of this month.

Authorities urged the public to stay indoors in safe buildings or vehicles and avoid open areas such as coconut and tea plantations, playgrounds, and reservoirs, during adverse weather events. The public has also been advised against using fixed-line phones, electrical appliances, and open vehicles like bicycles, tractors, and boats due to the risk of lightning strikes and strong winds.

With the northeast monsoon gradually intensifying, occasional rains are also expected in the Northern, North Central, Eastern, and Uva provinces, with some areas of the Batticaloa district expected to receive up to 75 mm of rainfall. Misty conditions may affect parts of the Western, Sabaragamuwa, Central, and Uva provinces during early mornings.

The DMC has said the floods and landslides, triggered by Cyclone Ditwah, have so far claimed 627 lives, with 190 people still missing. More than 2.17 million people, across 25 districts, have been affected, including 611,530 families. A total of 4,517 houses have been destroyed, and 76,066 partially damaged, leaving over 80,500 homes affected, nationwide.

Kandy is the hardest hit District, recording 232 deaths, 81 missing persons, 1,800 fully destroyed houses, and over 13,000 partially damaged homes. Puttalam and Kurunegala reported 573 and 480 fully destroyed houses, respectively, while Kegalle, Ratnapura, Badulla, and Gampaha also suffered extensive property losses.

Authorities have set up 956 safety centres across the country, currently sheltering 27,663 families, totaling 89,857 people. Relief and rehabilitation efforts are ongoing, with priority given to food, water, and medical aid. Officials warned residents in landslide-prone areas to remain in shelters until conditions stabilise.

by Chaminda Silva

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