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JVP predicts crash of economy imminent, due to mismanagement

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By Saman Indrajith

The 2020 Central Bank annual report presented to Parliament last week is a testimony to the fact that the country’s economy is in dire straits, says the JVP.

Addressing the media at the party headquarters in Pelawatte yesterday, JVP Politburo member and former MP Sunil Handunnetti alleged that the government was using the funds meant for the development of the country for its projects to cling on to power. “The Central Bank report confirms many warnings we have been issuing in the recent past. The country’s economy is sliding into a recession and there would be a crash soon. The economy recorded a growth of -1.6% during the first quarter of 2020. That was before the onset of the pandemic. The situation worsened in the second quarter. The government is citing the pandemic as the reason for the sharp economic downturn.

“The impact of the pandemic on the economy is evident, but what we are experiencing is mainly due to the economic mismanagement. There are five main crises in our economy. The first is the loan crisis. The revenue received by the Treasury is not sufficient even to pay the installments of loans taken. To pay-back the due installments the country needs to borrow an additional 135 billion rupees. The total outstanding loans as at 2019 was Rs 14,115 billion. That increased to Rs 16,427 billion in 2020. The government has to pay 6.9 billion US dollars as loan repayments. The second is the import-export crisis.

“The government came into power promising to improve the production industry and bring down imports. We have sea areas, which eight times the country’s land masse, but we imported fish worth Rs 34,650 million in 2020. In 2010, we produced 27 percent of the onion requirement in this country; now it has dropped to eight per cent so that we have to import 92 per cent of the country’s onion requirement. We have imported Rs 27,610 million worth of salt, milk and milk products worth Rs 61,930 million. The third crisis is the weak government revenue. In 2016 the government income was around 23 per cent of the GDP. As at 2014 the figure dropped to 11.5 per cent. Now it’s at 9.1 percent.

“The fourth crisis is the collapse of the industrial sector due to the high cost of raw materials, failure to combine technological support with the industrial process and inability to create a proper market for industrial output. The fifth crisis is the inequitable distribution of national wealth.”

Of the total population, the top 10 percent of rich enjoy 38.4% of national income while 10 per cent at the bottom receive only 1.1 per cent of the national income. There is a huge tax burden on the people. This government promised to maintain 40 percent direct taxes and 60 percent indirect taxes. Yet now the indirect taxes are around 80 percent. Sri Lanka is the only country in the world with this much taxes on food consumed by the people. Even in India it’s 49 per cent, in Indonesia its 50 percent and in Thailand it is at 40 percent.”

JVP Central Committee Members Wasantha Samarasinghe and Nalin Hewage also addressed the press.



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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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Western Naval Command conducts beach cleanup to mark Navy’s 75th anniversary

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In an environmental initiative commemorating the 75th anniversary of the Sri Lanka Navy, the Western Naval Command organized a cleanup programme at Galle Face Beach on Saturday (27 Dec 25).

The programme focused on the removal of substantial solid waste littering the beachfront, including accumulated plastic and polythene debris. All collected wastey was systematically disposed of utilizing methods designed to safeguard the sensitive coastal ecosystem.

Demonstrating a strong commitment to the cause, the cleanup effort saw the participation of the Commander Western Naval Area and a group of over 200 naval personnel.

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Environmentalists warn Sri Lanka’s ecological safeguards are failing

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Sri Lanka’s environmental protection framework is rapidly eroding, with weak law enforcement, politically driven development and the routine sidelining of environmental safeguards pushing the country towards an ecological crisis, leading environmentalists have warned.

Dilena Pathragoda, Managing Director of the Centre for Environmental Justice (CEJ), has said the growing environmental damage across the island is not the result of regulatory gaps, but of persistent failure to enforce existing laws.

“Sri Lanka does not suffer from a lack of environmental regulations — it suffers from a lack of political will to enforce them,” Pathragoda told The Sunday Island. “Environmental destruction is taking place openly, often with official knowledge, and almost always without accountability.”

Dr. Pathragoda has said environmental impact assessments are increasingly treated as procedural formalities rather than binding safeguards, allowing ecologically sensitive areas to be cleared or altered with minimal oversight.

“When environmental approvals are rushed, diluted or ignored altogether, the consequences are predictable — habitat loss, biodiversity decline and escalating conflict between humans and nature,” Pathragoda said.

Environmental activist Janaka Withanage warned that unregulated development and land-use changes are dismantling natural ecosystems that have sustained rural communities for generations.

“We are destroying natural buffers that protect people from floods, droughts and soil erosion,” Withanage said. “Once wetlands, forests and river catchments are damaged, the impacts are felt far beyond the project site.”

Withanage said communities are increasingly left vulnerable as environmental degradation accelerates, while those responsible rarely face legal consequences.

“What we see is selective enforcement,” he said. “Small-scale offenders are targeted, while large-scale violations linked to powerful interests continue unchecked.”

Both environmentalists warned that climate variability is amplifying the damage caused by poor planning, placing additional strain on ecosystems already weakened by deforestation, sand mining and infrastructure expansion.

Pathragoda stressed that environmental protection must be treated as a national priority rather than a development obstacle.

“Environmental laws exist to protect people, livelihoods and the economy,” he said. “Ignoring them will only increase disaster risk and long-term economic losses.”

Withanage echoed the call for urgent reform, warning that continued neglect would result in irreversible damage.

“If this trajectory continues, future generations will inherit an island far more vulnerable and far less resilient,” he said.

Environmental groups say Sri Lanka’s standing as a biodiversity hotspot — and its resilience to climate-driven disasters — will ultimately depend on whether environmental governance is restored before critical thresholds are crossed.

By Ifham Nizam ✍️

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