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IMF Executive Board completes the Fourth Review under the Extended Fund Facility with Sri Lanka

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IMF Executive Board [pic IMF]

The Executive Board of the International Monetary Fund (IMF) completed the Fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR254 million (about US$350 million). This brings the total IMF financial support disbursed so far to SDR1.27 billion (about US$1.74 billion).

The EFF arrangement for Sri Lanka was approved by the Executive Board on March 20, 2023 in an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion). The program supports Sri Lanka’s efforts to durably restore macroeconomic stability by
(i) restoring fiscal and debt sustainability while protecting the vulnerable,
(ii) safeguarding price and financial sector stability,
(iii) rebuilding external buffers,
(iv) strengthening governance and reducing corruption vulnerabilities, and
(v) enhancing growth-oriented structural reforms.

The Executive Board reviewed a report from the Managing Director on the inadvertent provision of inaccurate data by Sri Lanka on the ceiling of the central government’s stock of expenditure arrears. The under-reporting of the arrears stock identified through a detailed analysis of budget line appropriations gave rise to noncomplying purchases and a breach of Sri Lanka’s obligations under Article VIII, Section 5. The authorities have worked openly and closely with IMF staff to provide corrected data and have undertaken several corrective measures related to the clearing and reporting of arrears. They are also committed to improving reporting and data verification practices going forward in line with IMF technical assistance. Based on these actions, the Executive Board approved the authorities’ request for waivers of non-observance.

The authorities have consented to the publication of the Staff Report prepared for this consultation.

Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

“Sri Lanka’s performance under the Fund-supported arrangement is generally strong with some implementation risks being addressed. Reforms are bearing fruit, with economic growth strengthening, inflation remaining low, reserves accumulating, and fiscal revenues improving. The debt restructuring process is nearing completion. The economic outlook is positive, but downside risks have increased. In case shocks materialize, the authorities should work closely with the Fund to assess the impact and formulate policy responses within the contours of the program. Steadfast program implementation will be crucial.

“Sustained revenue mobilization is critical to restoring fiscal sustainability and creating fiscal space. Strengthening tax exemption frameworks, boosting tax compliance, and enhancing public financial management to ensure effective arrears management are important. Further improving the coverage and targeting of social support to the vulnerable is also necessary. A smoother execution of capital spending within the fiscal envelope would help foster medium-term growth. The restoration of cost-recovery electricity pricing and the operationalization of automatic electricity tariffs adjustment are commendable and should be maintained to contain fiscal risks.

“The progress to advance the restructuring of Sri Lanka’s debt is noteworthy. Timely finalization of bilateral agreements with remaining official and commercial creditors is a priority.

“Monetary policy should continue to prioritize price stability, supported by sustained commitment to eliminate monetary financing and safeguard central bank independence. Greater exchange rate flexibility and gradually phasing out administrative balance of payments measures remain critical to rebuild external buffers and economic resilience.

“Resolving non-performing loans, strengthening governance and oversight of state-owned banks, and improving the insolvency and resolution frameworks are important to revive credit growth and support private sector development.

“Structural reforms are crucial to unlock Sri Lanka’s potential. The government should continue to implement governance reforms and advance trade-facilitation reforms to boost export growth and diversification.”

Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

“The Executive Board of the International Monetary Fund (IMF) reviewed noncomplying purchases made by Sri Lanka under the 2023 Extended Arrangement under the Extended Fund Facility (“EFF”), as well as a breach of obligations under Article VIII, Section 5. The noncomplying purchases arose as a result of the provision of inaccurate information by the authorities on the stock of expenditure arrears at the first, second, and third reviews under the EFF.

“The inaccuracies in information provided to the IMF were inadvertent and arose because of weaknesses in the timely reporting of arrears by line ministries to the Ministry of Finance, as well as a misunderstanding by the authorities of the definition of “arrears” under the Technical Memorandum of Understanding.

“The Executive Board positively considered the authorities’ corrective actions, the fact that arrears repayments will be accommodated within the existing fiscal envelope, and the authorities’ commitment to improving public financial management procedures in line with the new PFM law, to reduce the risk of accruing arrears or inaccurate reporting of information going forward. In view of the above, the Executive Board agreed to grant waivers for the nonobservances of the quantitative performance criterion that gave rise to the noncomplying purchases and decided not to require further action in connection with the breach of obligations under Article VIII, Section 5.”

[IMF]



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Mandhana, Shafali and Ghosh help India edge run-fest to go 4-0 up

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Smriti Mandhana and Shafali Verma put on a record opening stand for India (BCCI)

After three one-sided, low-scoring encounters, the fourth T20I between India  and Sri Lanka exploded into a run-fest in Thiruvananthapuram, with both sides posting their highest totals in women’s T20Is. India’s big score of 221 for 2 proved too much for Sri Lanka, who fell short by 30 runs, handing the hosts a 4-0 series lead with one match remaining. India missed two catching opportunities and a stumping chance, while Sri Lanka gave away three, but the batting dominance was decisive.

Smriti Mandhana and Shafali Verma set the tone with blistering half-centuries to power India’s innings, while Chamari Athapaththu kept Sri Lanka in the chase with a fighting 52. Despite a few late cameo efforts, the visitors couldn’t overcome India’s dominant batting display.

Shafali and Mandhana delivered a masterclass in aggressive opening batting, putting together 162 runs off just 92 balls – the highest opening partnership for India in women’s T20Is. Shafali continued her purple patch with a third successive T20I half-century, while Mandhana, who had managed only 40 runs in the first three matches, roared back to form. The innings also saw Mandhana climb to the top of the charts for most runs (1,703) in women’s internationals in a calendar year, underlining her dominance.

India’s openers were relentless from the outset, racing to 61 without loss in the powerplay with 12 boundaries. Shafali’s innings was built on control and placement – her first six came only after her fifty, a loft over long-off in the 11th over – and she finished with 12 fours and a six.

Mandhana, meanwhile, struck 11 fours and three sixes, though her innings briefly dipped in tempo. After racing to 24 off 14 balls, she moved to 28 off 24 during a short lull before accelerating sharply to reach her half-century off 35 deliveries. From there, she cut loose, using the feet to loft the spinners and driving straight with authority.

The contest decisively tilted in overs 11 to 13, when India tore into the attack. The 11th over went for 15 runs, followed by a 20-run 12th and an 18-run 13th, each featuring two fours and a six. Any hopes Sri Lanka had of restricting the damage vanished as India surged from 85 for no loss to 120 in just two overs.

India brought up 150 in only 14.2 overs, making light of the Sri Lanka captain’s assessment at the toss that 140 would be a competitive total.

Sri Lanka had to wait 92 balls for their first breakthrough and struck again in the following over, the 17th, but any momentum was swiftly snuffed out by Richa Ghosh. With Harleen Deol replacing Jemimah Rodrigues, who was recovering from a mild fever, India promoted Ghosh to No. 3 for the death overs – a move that paid rich dividends. Having faced just one delivery in the series before this match, Ghosh made an impact, blasting 40 off 16 balls and adding an unbroken 53-run stand with Harmanpreet Kaur.

Ghosh announced herself by heaving her second ball over Nimasha Meepage’s head for four. After a relatively quiet 17th over, she found her range against the same bowler, striking two more boundaries. The onslaught peaked against Kavisha Dilhari, one of Sri Lanka’s more experienced bowlers, as Ghosh went into overdrive. She smoked three sixes and a four to plunder 23 runs from the 19th over, punishing anything in her hitting arc and underlining India’s ruthless finish.

Sri Lanka began their chase aggressively, with Hasini Perera  taking charge. She tore into Renuka Singh’s first over, hitting three boundaries, while Arundhati Reddy, making a comeback in place of the rested Kranti Gaud, conceded 17 off the second over. By the end of four, Sri Lanka had raced to 52 for 0, with the opening stand between Perera and Athapaththu putting on 59 runs off 34 balls.

Athapaththu struck the chase’s first six, charging down the track and clearing long-off off Deepti Sharma in the third over. Both left-handers punished anything too full or short, though Perera fell in the sixth over, holing out to Harmanpreet at mid-off off Reddy’s offcutter.

Athapaththu kept the momentum going, adding 57 runs off 46 balls with Imesha Dulani for the second wicket. Athapaththu moved from 20 off 15 balls to fifty in the next 19 deliveries, hitting three sixes and as many fours. However, her innings ended when she mistimed a charge over the off side, gifting a catch to Mandhana at long-off off Vaishnavi Sharma. At that stage, Sri Lanka needed 106 runs from 42 balls. Despite a few late cameos, the chase fell short.

On a night dominated by big scores, Vaishnavi emerged as the standout bowler, picking up two crucial wickets for just 24 runs. Introduced into the attack after the powerplay, she began by floating the ball outside off stump to entice the batters before gradually attacking the stumps and testing the left-handers with clever variations.

After dismissing Athapaththu in the 13th over, she also removed Harshitha Samarawickrama for a 13-ball 20 in the 17th, when the batter looked threatening. Her disciplined lines and sharp changes of pace helped India keep Sri Lanka’s scoring in check.

Brief scores:

India Women  221 for 2 in 20 overs  (Smriti Mandhana 80, Shafali  Verma 79, Richa Ghosh 40*, Harmanpreet Kaur16*; Malsha Shehani 1-32, Nimasha Meepage 1-40) beat Sri Lanka Women 191 for 6 in 20 overs  (Chamari Athapaththu 52,  Hasini Perera 33, Imesha Dulani  29, Harshitha Samarawickrama 20, Kavisha Dilhari 13, Nilakshika de Silva 23*; Arundhati Reddy 2-42, Vaishnavi Sharma 2-24, Shree Charani 1-46) by 30 runs

(Cricinfo)

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Myanmar votes as military holds first election since 2021 coup

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Myanmar's military chief Min Aung Hlaing shows his inked finger after voting at a polling station during the first phase of Myanmar's general election in Naypyidaw on December 28, 2025 [Aljazeera]

Polls have opened in Myanmar’s first general election since the country’s military toppled Nobel laureate Aung San Suu Kyi’s democratically elected government in a 2021 coup.

The heavily restricted election on Sunday is taking place in about a third of the Southeast Asian nation’s 330 townships, with large areas inaccessible amid a raging civil war between the military and an array of opposition forces.

Following the initial phase, two rounds of voting will be held on January 11 and January 25, while voting has been cancelled in 65 townships altogether.

“This means that at least 20 percent of the country is disenfranchised at this stage,” said Al Jazeera’s Tony Cheng, reporting from Myanmar’s largest city, Yangon. “The big question is going to be here in the cities, what is the turnout going to be like?”

In Yangon, polling stations opened at 6am on Sunday (23:30 GMT, Saturday), and once the sun was up, “we’ve seen a relatively regular flow of voters come in,” said Cheng.

“But the voters are generally middle aged, and we haven’t seen many young people. When you look at the ballot, there are only few choices. The vast majority of those choices are military parties,” he said.

The election has been derided by critics – including the United Nations, some Western countries and human rights ⁠groups – as an exercise that is not free, fair or credible, with anti-military political parties not competing.

Aung San Suu Kyi, who was deposed by the military ​months after her National League for Democracy (NLD) won the last general election by a landslide in 2020, remains in detention, and her party has been dissolved.

The pro-military Union Solidarity and Development Party (USDP) is widely expected to emerge as the largest party.

The military, which has governed Myanmar since 2021, said the vote is a chance for a new start, politically and economically, for the nation of 55 million people, with Senior General Min Aung Hlaing consistently framing the polls as a path to reconciliation.

Dressed in civilian clothes, the military chief cast his ballot shortly after polling stations opened in Naypyidaw, the country’s capital. He then held up an ink-soaked figure and smiled widely.

Voters must dip a ⁠finger into indelible ink after casting a ballot to ensure they do not vote more than once.

He told reporters afterwards that the elections are free and fair, and the vote was not tarnished because it is being held by the military.

The state-run Global New Light of Myanmar, in an opinion piece on Sunday, said the poll would open a new chapter and “serve as bridge for the people of Myanmar to reach a prosperous future”.

Earlier, it reported that election observers from Russia, China, Belarus, Kazakhstan, Cambodia, Vietnam, Nicaragua and India have flown into the country ahead of the polls.

But with fighting still raging in many areas of the country, the UN’s Special Rapporteur on Myanmar, Tom Andrews called on the international community to reject the military-run poll.

“An election organised by a junta that continues to bomb civilians, jail political leaders and criminalise all forms of dissent is not an election – it is a theatre of the absurd performed at gunpoint,” Andrews said in a statement.

“This is not a pathway out of Myanmar’s crisis. It is a ploy that will perpetuate repression, division and conflict,” he said.

The civil war, which was triggered by the 2021 coup, has killed an estimated 90,000 people, displaced 3.5 million and left some 22 million people in need of humanitarian assistance.

According to the Assistance Association for Political Prisoners, more than 22,000 people are currently detained for political offences.

In downtown Yangon, stations were cordoned off overnight, with security staff posted outside, while armed officers guarded traffic intersections. Election officials set up equipment and installed electronic voting machines, which are being used for the first time in Myanmar.

The machines will not allow write-in candidates or spoiled ballots.

Among a trickle of early voters in the city was 45-year-old Swe Maw, who dismissed international criticism.

“It’s not an important matter,” he told the AFP news agency. “There are always people who like and dislike.”

In the central Mandalay region, 40-year-old Moe Moe Myint said it was “impossible for this election to be free and fair”.

“How can we support a junta-run election when this military has destroyed our lives?” she told AFP. “We are homeless, hiding in jungles, and living between life and death,” she added.

The second round of polling will take place in two weeks’ time, before the third and final round on January 25.

Dates for counting votes and announcing election results have not been declared.

Analysts say the military’s attempt to establish a stable administration in the midst of an expansive conflict is fraught with risk, and that significant international recognition is unlikely for any military-controlled government.

“The outcome is hardly in doubt: a resounding USDP victory and a continuation of army rule with a thin civilian veneer,” wrote Richard Horsey, an analyst at the International Crisis Group in a briefing earlier this month.

“But it will in no way ease Myanmar’s political crisis or weaken the resolve of a determined armed resistance. Instead, it will likely harden political divisions and prolong Myanmar’s state failure. The new administration, which will take power in April 2026, will have few better options, little credibility and likely no feasible strategy for moving the country in a positive direction,” he added.

People line up to vote inside a polling station during the first phase of Myanmar's general election in Yangon on December 28, 2025.Polling opened in Myanmar's heavily restricted junta-run elections, beginning a month-long vote democracy watchdogs describe as a rebranding of military rule.
The Southeast Asian nation of about 50 million is riven by civil war, and there will be no voting in rebel-held areas, which is more than half the country [Aljazeera]

[Aljazeera]

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Interment of singer Latha Walpola at Borella on Wednesday [31st]

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Family sources have confirmed that the interment of singer Latha Walpola will be performed at the General Cemetery Borella on Wednesday (31 December).

 

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