Connect with us

News

IMF lauds Sri Lanka’s economic turnaround, highlights regional resilience

Published

on

Sri Lanka’s economy has “stabilised decisively” under its International Monetary Fund (IMF)-supported programme, with growth rebounding, tax revenues doubling, and inflation sharply declining, a senior IMF official said in Colombo yesterday.

Dr. Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, delivered the assessment during a public lecture on the IMF Regional Economic Outlook: Asia and Pacific, held at the Central Bank of Sri Lanka. He was joined by Dr. Thomas Helbling, the Department’s Country Director.

Both officials commended the Asia-Pacific (APAC) region’s overall economic resilience in the face of global challenges and advocated for deeper trade and supply chain integration to mitigate vulnerabilities in international trade.

Presenting a country-focused analysis, Dr. Srinivasan outlined how Sri Lanka has performed against the five key pillars of the IMF programme:

Revenue-based fiscal consolidation, supported by tax reforms and strengthened social safety nets.

Restoring debt sustainability through fiscal adjustment and debt restructuring.

Maintaining price stability and rebuilding foreign exchange reserves.

Safeguarding external stability.

Combating corruption via a comprehensive anti-corruption reform agenda.

“Sri Lanka has come out of the crisis stabilising its economy across three dimensions,” Dr. Srinivasan stated referring to Sri Lanka’s Growth, Revenue, and Inflation. He highlighted that growth “bounced back decisively,” turning positive within six months of the programme and recently averaging about 5 percent annually.

On fiscal performance, he noted a “significant turnaround.” Tax revenue has doubled from a critically low 7.3 percent of GDP to 14.8 percent in 2025.

Dr. Krishna Srinivasan / Dr. Thomas Helbling

Furthermore, inflation has dropped “in a very convincing manner” from approximately 70 percent to the current 2-3 percent range. “One would hope that in the next few quarters, it will reach the Central Bank’s target of 5 percent,” he added.

“Overall, the IMF programme for Sri Lanka has delivered on many of its objectives,” Dr. Srinivasan concluded. “There is still a long way to go in terms of securing strong, sustained, balanced growth, but the program is off to a very good start. All of you, the authorities, and the people of Sri Lanka need to be congratulated for the progress made so far,” he said.

In his regional remarks, Dr. Srinivasan projected that Artificial Intelligence (AI) will be a key driver of the Asian economy. He suggested that technology companies in the region would be “better served by the capital markets than from conventional banks,” pointing to a need for evolved financial ecosystems to support innovation.

The lecture underscored the IMF’s constructive outlook for Asia’s continued resilience, while emphasising structural reforms and regional cooperation as vital for future stability and growth.

By Sanath Nanayakkare



News

Energy Minister indicted on corruption charges ahead of no-faith motion against him

Published

on

Jayakody

… first NPPer to face charges under Section 70 of Bribery Act

Colombo High Court has issued summons on Energy Minister Kumara Jayakody to appear in court today (27) to serve indictment in a corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Action has been taken under Section 70 of the Bribery Act. The losses suffered by the government have been estimated at Rs. 8,859,708.

National List (NL) MP Jayakody is the first NPP minister or politician at any level to be indicted for corruption. The NPP parliamentary group consists of 159 including 18 NL members.

The summons has been issued by High Court judge Rashantha Godawalage.

Although CIABOC previously in many instances arrested those who had been under investigation and produced them before Magistrate courts, Minister Jayakody has been directly summoned by the Colombo High Court.

The investigation into alleged corruption in procurement during the time Jayakody served the Ceylon Fertilizer Corporation (CFC) started after the change of government in 2015.

According to the CIABOC investigation, the alleged instance of corruption took place in early 2014 towards the tail end of Mahinda Rajapaksa’s second term. At that time Jayakody was CFC’s Procurement Manager, and the CIABOC dragged the investigation until its current leadership under overall speeding up of the cases recently completed the inquiry.

Parliament recently announced that the debate on no-faith motion moved against Minister Jayakody over alleged irregularities in the procurement of substandard coal for the country’s only coal-fired power station at Norochcholai.

SJB MP Mujibur Rahman said that the NPP, having campaigned on an anti-corruption platform during presidential and parliamentary polls in 2025 couldn’t under any circumstances shield minister Jayakody. The indictment of Jayakody over a corruption case that had happened in 2014 and the failure on his part to fulfill obligations as Energy Minister under the current dispensation couldn’t be considered separately, the Colombo District MP said.

The issue at hand is whether the NPP would try to protect Jayakody at the expense of the government, MP Rahman said. Once the NPPer is formally charged in a corruption case the government would find it extremely difficult to keep him in the cabinet, the former UNPer said.

SJB lawmaker S.M. Marrikar recently warned Minister Jayakody that he should be prepared to serve a jail term. The warning was issued at a media briefing that primarily dealt with the alleged irregularities in the procurement of coal and their decision to move a no-faith motion against the minister. Marrikar explained how the crisis coupled with the growing diesel shortage could compel the government to increase electricity tariffs by as much as 18 percent next week. MP Marikkar said that they were eagerly waiting to see who backs Jayakody at the expense of the government during the upcoming  vote on the no-faith motion.

There had been a previous case of a sitting minister being charged under the Bribery Act in respect of corruption perpetrated as a government servant. MP Rahman said that they intended to intensify the ongoing campaign against the government on the strength of the unprecedented corruption case and the outcome of the no-faith motion. “Of course, they have the numbers to defeat our no-faith motion. But, in doing so, they end up with egg on their face. That is the reality,” Rahman said, adding that those responsible for waste, corruption and irregularities whichever political parties they represented shouldn’t expect special status.

MP Rahman alleged that the CIABOC granted special status to Minister Jayakody. All those who had been indicted previously were first called to the CIABOC, recorded their statements and then arrested, handcuffed and produced in court. The media was afforded the opportunity to cover their humiliation, MP Rahman said, but in this case the powers that be paved the way for the accused to receive indictments directly from the Colombo High Court.

“Let us see whether the Bar Association of Sri Lanka responds to this development,” MP Rahman said.

By Shamindra Ferdinando

Continue Reading

News

Over 1000 complaints of misuse of  QR quotas

Published

on

The Ministry of Digital Economy says it has received more than 1,000 complaints of fraudulent activities involving the misuse of QR-based fuel quota system.

Ministry Secretary Waruna Sri Dhanapala said investigations had been launched in coordination with the Police, noting that over 150 complaints had already been referred for further action, leading to several arrests.

He added, however, that a number of complaints stemmed from instances where individuals had used others’ QR codes due to a lack of awareness.

Police are also examining security camera footage at fuel stations to identify suspects linked to such incidents, the Secretary said.

by Pradeep Prasanna Samarakoon

Continue Reading

News

Fuel bowser operators demand 25% hike in haulage charges

Published

on

The Lanka Petroleum Private Tanker Owners’ Association has called for a 25% increase in fuel transportation charges, citing rising operational costs following recent fuel price hikes.

Addressing a media briefing in Colombo on Wednesday (25), Co-Secretary Shantha Silva said the association has formally notified the government of its proposal, warning that failure to respond favourably could result in trade union action.

Association President A.M.H. Adhikari said that fuel distribution had continued without interruption despite mounting challenges, but recent price increases have placed a significant burden on tanker operators.

“Fuel prices have risen by Rs. 101 within this month alone, creating serious difficulties for those engaged in distribution, particularly in outstation deliveries,” he said.

Adhikari added that the association’s Executive Committee has unanimously decided to seek a 25% increase in transportation charges for long-distance distribution, with effect from the 21st, expressing hope that the government would respond positively to avoid further disruptions.

by Chaminda Silva

Continue Reading

Trending