News

Interim government to meet crises needs correct policies

Published

4 years ago

2022/04/3

by PROF.TISSA VITARANA

The decision taken by the leaders of the Eleven Party Alliance to request that the President to forms and Interim Government is an essential first step towards solving the present crisis facing Sri Lanka. This interim Government needs to have correct policies to meet a crisis of this enormous magnitude. The interim government should not follow the policies that have aggravated the global economic crisis to such a scale in Sri Lanka. The immediate problems facing the suffering people such as the high price of food and food shortages, the shortages of essential medicines, fuel, gas and electricity have to be given priority. As mentioned by me last week the shortage of dollars is the principle factor. I like to stress once again that we should delay the settlement of loans and interest due for the next five years through a Moratorium. As we had to pay US dollars 6 billion last year to settle our loans, such a course will probably save about 30 billion dollars. This would enable us to immediately obtain the above mentioned essentials that are the main cause of the suffering of the people. I stressed that this has been done by several countries faced with similar economic crises in the past and even the present. The main policy of the SLPP Government not to do this but to somehow other pay back the loans on time will not provide the dollars that we badly need. The required change of attitude will not discredit us to the extent that the SLPP Government fears because, as mentioned earlier, this has been done in the past and even the present.

The above course of action will relieve the suffering of the people and bring back the confidence in the President and the interim government. The alternative that is proposed by the SLPP Government, UNP and Samagi Jana Balawegaya (SJB) of turning to the International Monetary Fund (IMF) will only aggravate the problem. This is because the neoliberal policies that those parties favor were the main cause of the massive defeat of the Yahalapanaya Government. The IMF insists on the door being opened for the import of any goods and article from abroad, whether they be cheaper or more expensive than what we can produce. It was the massive importation of luxury and non-essential goods over a long period of time by several Governments, most of all the Yahapalanaya Government, that led to our Foreign Reserves dropping from the usual safe level of 7 to 8 billion US dollars to the present level of less than one billion US dollars that has aggravated the crisis to this massive level. The loss of our ability to purchase essential items like oil, gas, milk powder and flour will be overcome as soon as we turn to the Moratorium policy of settlement of loans for five years as mentioned above. Once the people’s needs are provided and the crisis overcome in this way there will be no need to tie up with the IMF. The latter course would mean that we have to get more loans and get further into debt. The problem of debt and interest repayment will continue to plague us. The correct policy of developing a national economy where we become self-supporting with regard to food and also develop value added industries (both small, medium and large) that was decided on by the SLPP Government, but not implemented, could also be done. Therefore it is essential that those in the Interim Government should not insist on the tie-up with the IMF and the resultant commitment to implement their policies.

Another very important step is that the Interim Government should properly revive the Cooperative Movement, both consumer and multipurpose. By ruining this the present major problem of high prices of food leading to hunger, starvation and malnutrition could be solve by eliminating the price rises which are due to the large number of middleman who profiteer at the expense of both the farmer and the consumer. This can be quickened by reviving the Marketing Department which can also directly purchase from the farmer and provide the consumer with food at a reasonable price, by only covering their expenses, without any profiteering as is done by private traders.

The next essential step that must also be taken is establishing value added industries (both SMEs and Large scale). The necessary science and technology funding should be provided, to do the required research. With a stable economy and a stable government it would be possible to attract foreign investment. In addition the Lanka Sama Samaja Party (LSSP) proposal of introducing the principle of a Solidarity Economy should be put into effect. This principle has been adopted by several countries in Europe and in the third world, as well as the USA. A classic outcome is that it has helped both public and private loss making institution to become profitable ones. A good example is what happened in Kerala, India. There when TATA’s refused to give a salary increase to the workers on the premise that they were running at a loss, like the private plantations in Sri Lanka, the Left-wing Government took back the land from TATA’s and gave the ownership for a period of 30 years to the employees. The outcome is that the plantations are now running at a big profit to the benefit of both the employees and the Kerala Government.

During the SLFP/LSSP/CP Coalition Government (1970-1975) when faced with an equally severe crisis Dr.N.M.Perera, the LSSP leader, who was the Minister of Finance, was able to increase the Forex Reserves from 1.5 billion US dollars to 3.2 billion dollars, thereby ensuring adequate dollars to meet the cost of essential imports. Further he balanced the budget and took away the burden from the poor people, by reducing indirect taxes, and making up for this by increasing the taxation of the rich. He raised the highest tax slab for the super-rich to 75%. It is a crime to raise the VAT tax as the SLPP Government has done now by 2%, while maintaining the upper limit of tax for the super-rich at 14%. NM encouraged investment in the manufacturing industry by maintaining a very low tax level and any rich person could also get that benefit by investing there.

The LSSP, as a member of the Eleven Party Alliance supports the above policies if we are not only to have an Interim Government that puts the country back on the correct track, but also describes the policies that should be pursued if we are to get out of this severe crises and rescue our country and our people from poverty and its consequences. We shall give the President our fullest support in the setting up and functioning of this Interim Government. We hope that once there is some degree of stability General Elections will be held and a new Government formed that will get us out of the crisis, build national unity, and lead to the development of our country.

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News

President chairs discussion on 2027 Budget Proposals for the Ministry of Industry and Entrepreneurship Development

Published

10 hours ago

2026/07/16

Priyan

A pre-Budget discussion to review the progress of projects implemented under the 2026 Budget allocations for the Ministry of Industry and Entrepreneurship Development and to discuss proposals for the 2027 Budget was held under the patronage of President Anura Kumara Dissanayake at the Presidential Secretariat on Monday (13) afternoon.

The progress of projects implemented by each division of the Ministry of Industry and Entrepreneurship Development and the institutions under its purview using the 2026 Budget allocations, as well as proposals for the 2027 Budget, were reviewed separately during the discussion.

The President also focused on the current status of the programme to establish industrial zones in areas including Dambulla, Ingiriya, Valachchenai, Millaniya and Katunayake. Discussions centred on issues that have arisen in allocating land and developing infrastructure, including electricity, water and roads, as well as the urgent measures required to resolve these issues.

President Dissanayake instructed officials to make every effort to complete all projects already initiated under the Ministry of Industry and Entrepreneurship Development within the stipulated timeframes. He also highlighted the need to clearly identify the Government’s role and limitations in relation to the industrial sector.

Attention was also drawn to the current situation regarding the development of state-owned enterprises, while issues affecting the sugar and salt industries and alternative proposals to address them were also discussed.

The current status of the process to consolidate institutions under the Ministry of Industry and Entrepreneurship Development was also reviewed. The President pointed out that large institutions had been established at different times to meet various needs, ultimately creating a situation in which such institutions had to be maintained using taxpayers’ money.

He stressed that the consolidation of these institutions should not only improve their efficiency but should also result in a relative reduction in operational expenditure compared with the costs incurred prior to consolidation.

Officials also briefed the President on the proposal to establish the Entrepreneurship and Industry Transformation Authority (EITA) and the programme proposed under the Authority.

Attention was also focused on the challenges faced by exporters and industrialists in carrying out their activities. The President instructed officials to submit proposals on general concessions that could be provided to encourage exporters and industrialists.

The President further pointed out that Sri Lanka could develop distinctive expertise by identifying several key areas within the industrial sector and providing the facilities necessary for their development.

Minister of Industry and Entrepreneurship Development Sunil Handunnetti; Minister of Labour and Deputy Minister of Finance and Planning Anil Jayantha Fernando; Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe; Secretary to the President Dr Nandika Sanath Kumanayake; Chief of Presidential Staff Prabath Chandrakeerthi; Senior Additional Secretary to the President Russell Aponsu; Secretary to the Ministry of Finance, Planning and Economic Development Dr Harshana Suriyapperuma; and Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, along with officials from the Ministry of Finance and the Ministry of Industry and Entrepreneurship Development, participated in the discussion.

[PMD]

News

Prime Minister meets the Amir of the State of Qatar and conveys condolences on the passing of the Father Emir

Published

10 hours ago

2026/07/16

Priyan

Prime Minister Dr. Harini Amarasuriya, visited the State of Qatar to convey condolences on the passing of the Father Emir, at Lusail Palace in Doha on Wednesday (15 July).

Upon her arrival, the Prime Minister was received by His Highness Sheikh Khalifa bin Hamad bin Khalifa Al Thani, Minister of Interior of the State of Qatar. The Prime Minister subsequently met with His Highness the Emir of the State of Qatar, Sheikh Tamim bin Hamad Al-Thani.

During the meeting, Prime Minister Dr. Harini Amarasuriya conveyed to the Emir the deepest condolences of the Government and the people of Sri Lanka on the passing of the Father Emir, Sheikh Hamad bin Khalifa Al Thani.

The occasion was attended by the Deputy Emir of the State of Qatar Sheikh Abdullah bin Hamad Al Thani; Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani; Hassan bin Abdullah Al Ghanim, Speaker of the Shura Council; senior members of the Royal Family.

[Prime Minister’s Media Division]

News

Current El Niño Status in Sri Lanka

Published

21 hours ago

2026/07/16

Priyan

At present, El Niño conditions have developed and are classified as being at a weak level. Forecasts indicate a 63% probability of a very strong El Niño event developing during the period from November 2026 to January 2027. According to the National Oceanic and Atmospheric Administration (NOAA), there is approximately a one-third probability that El Niño will remain below a very strong intensity.

Typical Climatic Conditions Associated with El Niño
Based on analyses of past El Niño events that occurred between 1950 and 2025:
• Rainfall during July and August may be below normal, particularly in the dry zone areas.
• From October onward, rainfall is generally expected to be above normal.
• If a positive Indian Ocean Dipole (IOD) develops, enhanced rainfall conditions may continue until December.

Sectors Requiring Attention
• Appropriate measures should be taken for water resource management during July and August.
• Increased rainfall expected from October onward may lead to floods and landslides, requiring preparedness and close monitoring. The forecasts are important for sectors such as, Agriculture /Water management /Livestock /Health /Energy /Other climate-sensitive sectors
• Attention should be paid to official information issued by the Department of Meteorology.

Actions by the Department of Meteorology
The Department of Meteorology continuously monitors the evolving situation and issues:
• Weekly and monthly seasonal forecasts and Monthly analyses of rainfall data to monitor meteorological drought conditions.
As weather conditions are influenced not only by El Niño but also by other climatic factors, updated forecasts and advisories are regularly shared with relevant stakeholder organizations (Irrigation/ Water Management Committee /Department of Agriculture/National Building Research Institute/Disaster Management Centre (DMC)/Ministry of Health /Sri Lanka Land Development Corporation…etc). The Department also provides technical support to the committee established through a Cabinet decision to address climate-related impacts. The Department’s monthly rainfall outlook for July to September 2026 is attached

Monthly Rainfall Forecasts for July, August and September 2026
Month Rainfall forecast
July 2026

During July 2026, there is a higher probability of having near normal rainfall across most parts of the Western and Southern Provinces. The remainder of the country is expected to experience below normal rainfall.

August 2026

There is a higher probability of having below normal rainfall across most parts of the country during month of August 2026.

September 2026

There is a possibility of above-normal rainfall across most parts of the Western and Southern Provinces, while near-normal rainfall is expected in the Sabaragamuwa Province. Below-normal rainfall is likely in the remaining areas during September 2026.

Note: These long-range forecasts may change due to strong day-to-day atmospheric variability associated with the movement of weather systems such as atmospheric disturbances, low-pressure areas, and depressions, as well as intra-seasonal oscillations such as the Madden–Julian Oscillation (MJO). Therefore, in addition to the weekly and monthly forecasts, it is important to pay attention to the Department’s official announcements, weather advisories and warnings, as well as the daily weather forecasts issued by the Department of Meteorology.