News

Let Us Recover From The Socio-Economic Crisis And Avoid Political Disaster

Published

4 years ago

2022/06/19

by Prof. Tissa Vitarana

The economic crisis that is affecting Sri Lanka has reached massive proportions and acquired novel social dimensions that threatens the very fabric of our society. The Foreign Exchange (Forex) Reserve, which averaged around USD 7 to 8 Billion before the crisis, has dropped to a mere USD 50 Million, the lowest figure in our history, as revealed by then Finance Minister Ali Sabry. The resulting dollar scarcity has led to a sharp drop in the import of essentials like fuel (diesel and petrol), LP gas, medicines and food items. This has led to mile long queues of vehicles (cars, buses, lorries, motor bikes and scooters) at petrol sheds, often for several days, and similarly for LP gas at gas stations. The Cooperative (Sathosa) and private megastores, like Cargills, and the retail outlets are empty. The outcome is hunger, starvation, unemployment, frustration and anger. This not only affects the poor 60% but aiso the middle and upper classes of society. But only a few unscrupulous mega rich and a few politicians escape the harassment.

This situation has led to the widespread peaceful protest for well over a month, with Galle Face as the epi-center. But the cruel attack on the protestors originating from Temple Trees (the official residence of the Prime Minister) triggered the outbreak of violence on the 9th of May and it spread country wide. While some of the genuine protestors, specially angry youth, turned violent, it also permitted anti-democratic political forces brought up in the past JVP terrorist tradition to burn and destroy houses and property and attack individuals. This was focused largely on MPs of the SLPP who responded to the call from Temple Trees, though they may not have been involved in the attack on 9th May. For instance the LSSP Chairman of the Balapitiya Pradeshiya Sabha had his house destroyed, though he only responded to the Prime Minister’s call, and as a LSSP member was a supporter of the protestors, and did no harm to them, and took no part in the attack on the peaceful protestors. I only hope that the JVP and its off-shoot the Peratugami Party, whose to unite appears to have failed, will not return to the terrorism of 1971 and 1988/9, which was directed mainly against the progressive forces, not the exploiters or the corrupt. Some SJB supporters too have been implicated.

As everyone knows the global economic crisis is getting worse, and the rich ex-colonial powers like the USA, UK, and France, that became rich by exploiting the Third World countries, are badly affected. The USA which was in the top position of the economic ladder has dropped to the 12th place and China is now at the top. In fact while the Imperialist powers have come down. Asia has shown growth, led by China, Vietnam, South Korea, India and Indonesia. But we must ask why is Sri Lanka near the bottom of the ladder, just above Afghanistan. The ruling class here tries to get away from any blame by putting it on our being a social welfare state. We must have economic development from both the private and government sectors, not poverty.

But successive capitalist governments, mainly led by the UNP in Sri Lanka, have not developed our economy, but followed neoliberal policies which have encouraged imports, including luxury goods, and spendthrift policies, leading to an adverse foreign trade balance. This is the basic cause of us having to go begging for dollar aid from foreign countries. In the absence of a clear national development plan we remain a basically agricultural economy barely achieving self-sufficiency in food at the best of times. Little attention has been paid to become an industrial nation by developing a value added economy, using our agricultural and natural resources. The local capitalist class is content to export tea, rubber, spices etc. in the raw form, as was the case when under British rule. For instance we continue to import tires from Britain where the value addition is done, and they make a huge profit by selling the tires in the world market,(including Sri Lanka). The same applies to our extensive natural resources like graphite and ilmenite, which could be the basis of our own large scale industries. For example by the conversion of graphite into graphene abroad a whole range of industrial products are produced at a great profit, but this is something that we can do in Sri Lanka. The sea around Sri Lanka is a rich source of fish and minerals to develop export industries. With a little effort our tourist industry can easily outstrip the Maldives, as we not only have the attraction of the sea, but also beautiful mountain scenery, well preserved ancient ruins and a rich culture.

In view of the above facts, it is sad to see how our people are suffering. The wrong neoliberal policies of the Ranil Wickremasinghe “Yahapalanaya” government (YG) that aggravated the economic crisis has continued with the SLPP Government and will be strengthened now that Ranil is back as Prime Minister. The departure of the former PM, Mahinda Rajapakse, after the May 9th events paves the way for the USA once again to proceed with the objectives of the MCC and SOFA agreements. The fact is that President Gotabhaya renegaded on his promise to our Group of 41 MPs that broke away from the SLPP in Parliament and formed an Independent Group (IG), which stated that an Interim All Party Government should be formed to restore economic, social and political stability in about 6 to 8 months, and then go for a general election. Instead he made the main enemy of the progressive forces, Ranil, the PM. This is a clear indication that he does not wish to serve our people, but follows the oath he swore when becoming an American citizen to serve the USA and even sacrifice his life for it.

Our country is in grave danger. Our economy and society are on the verge of collapse, and it is questionable whether it is through the implementation of wrong policies by ignorance or by design. At the helm are Gotabhaya as the Executive President, Ranil Wickremasinghe as PM, and Basil Rajapaksa as the leader of the main party forming the Government, the SLPP. They are all committed to serve the USA. Ranil may very well help the USA to achieve the objectives of the MCC and SOFA agreements, which he had agreed to sign when PM in the earlier YG. In brief these agreements would allow the USA to exploit our economy as the British rulers did, and to make Sri Lanka as a whole an American military base. The latter has become necessary after the International Criminal Court (ICC) ruled that the USA should quit its main base, Diego Garcia, in the Indian Ocean rim, which is on an island that belongs to the country of Mauritius. If these are done Sri Lanka will lose its independence, sovereignty and territorial integrity. At the end of the Second World War, Japan was forced to allow the USA to establish its military base in Okinawa island. When the women are raped by American soldiers, they cannot be charged in the Japanese Courts of law, but in the Courts of the USA. The final outcome is no or trivial punishment. When this happens to a powerful country like Japan, what will Sri Lanka’s fate be. It is the duty of all who love Sri Lanka to become aware of these dangers and resist all moves that are detrimental to the interest of the nation and all our people.

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News

Theft of USD 2.5 mn from Treasury: CoPF accused of complicity in NPP cover-up

Published

13 hours ago

2026/06/15

Thilina Walpola

Harsha rejects what he called frivolous accusations

Chairman of Committee on Public Finance (CoPF) Dr. Harsha de Silva dismissed Free Lawyers’ claim that his Committee had helped delay a proper investigation into the theft of USD 2.5 mn (nearly Rs 1 bn) from the Treasury.

The Colombo District SJB MP said that he wouldn’t comment on frivolous accusations against his Committee. “We conduct ourselves in keeping with the highest standards of professionalism and responsibility.”

Dr. de Silva said so when The Island raised the Free Lawyers’ allegation that the Treasury and the Central Bank were using the CoPF as a tool to prolong investigations into the unprecedented theft of funds. Free Lawyers targeted the CoPF in a statement issued by Maithri Gunaratne, PC, and civil society activist Rajith Keerthi Tennakoon.

The other members of the CoPF are Harshana Rajakaruna (SJB), Ravi Karunanayake (NDF), Nimal Palihena (NPP), Wijesiri Basnayake (NPP), Thilina Samarakoon (NPP), Lakmali Hemachandra (NPP), Chathuranga Abeysinghe (NPP), Kaushalya Ariyaratne (NPP), Akram Ilyas (NPP), Shanakiyan Rajaputhiran Rasamanikkyam (ITAK), Champika Hettiarachchi (NPP), Sunil Rajapaksha (NPP),

M. K. M. Aslam (NPP), Ajith Agalakada (NPP), Rauff Hakeem (SLMC), Chitral Fernando (SJB) and Nishantha Jayaweera (NPP).

Tennakoon said the theft of funds happened over eight months ago and the Parliament owed the country a clear explanation regarding the disappearance of USD 2.5 mn. The CoPF, instead of expediting the process, has conveniently granted time for those responsible for the loss to cover up their tracks. “Free Lawyers pursue the issue at hand vigorously as we were the first to reveal the loss of USD 2.5 mn. Those who knew it remained silent until our disclosure,” he said, alleging that Speaker Dr. Jagath Wickremaratne was yet to respond to their letter regarding the USD 2.5 theft.

Responding to queries, Tennakoon said that political parties represented in the CoPF should be held responsible for the developing situation. “The Committee on Public Accounts Committee (CoPA) headed by SJB MP Kabir Hashim too, should explain its failure to deal with the USD 2.5 mn theft. Both CoPF and CoPA led by two SJB MPs should act now. Dr. de Silva and Hashim are answerable to the public, particularly because they represent the main Opposition.”

The CoPA consists of Kabir Hashim, Maj. Gen. Aruna Jayasekera (NPP), Sugath Thilakaratne (NPP), Anton Jayakody (NPP), Chandana Sooriyaarachchi (NPP), Ruwanthilaka Jayakody (NPP), Nalin Hewage (NPP), Oshani Umanga (NPP), Manjula Suraweera (NPP), Sagarika Athauda (NPP), Janaka Senarathna (NPP), K.Illankumaran (NPP), Dinidu Saman Henanayake (NPP), Susantha Kumara Navaratna (NPP), Lal Premanath (NPP), Aravinda Senarath (NPP), Thushari Jayasinghe (NPP), T. K. Jayasundera, Ajantha Gammeddage (NPP), Sundaralingam Pradeep (NPP), Kavinda Jayawardena (SJB), J.C. Alawathuwala (SJB),Hector Appuhamy (SJB), Kaveenthiran Kodeeswaran (ITAK), Chamara Sampath Dassanayake (NDF), Rohitha Abeygunawardena (NDF), M.L.A.M. Hisbullah (SLMC), M.A.M. Thahir (ACMC), Chanaka Madugoda (SLPP) and Sunil Ratnasiri (NPP).

Tennakoon said that both CoPF and CoPA were dominated by the NPP though the SJBers headed them. However, as heads of the two parliamentary committees, Dr. de Silva and Hashim, should be held responsible for lapses on the part of the committees or any deliberate omissions, Tennakoon said, questioning the rationale behind giving the Treasury and the CBSL six weeks to submit their findings to the CoPF.

Free Lawyers alleged that USD 2.5 had been released in spite of JP Morgan Chase and the Federal Reserve in the United States warning Sri Lanka about the suspicious nature of those foreign transactions via SWIFT messages. Tennakoon emphasized investigators should closely inquire into the decision taken to release funds regardless of such high-profile warnings.

Tennakoon said that the integrity of two key parliamentary committees is at stake. The civil society activist said that the country was in a highly critical phase of debt restructuring following a severe economic crisis. Tennakoon pointed out in terms of a condition of the International Monetary Fund (IMF) loan programme, the government’s debt management functions, previously carried out by the CBSL, were recently transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).

by Shamindra Ferdinando

News

Viral diseases on the rise

Published

13 hours ago

2026/06/15

Thilina Walpola

The number of patients hospitalised due to viral illnesses, including dengue fever, had increased significantly, health officials said yesterday, adding that there had been a rise in daily dengue-related admissions.

Acting Director of the National Dengue Control Unit Dr. Kapila Kannangara said Sri Lanka had recorded 41,144 dengue cases as of Saturday (13).

He said more than half of the reported cases—around 51 percent—were from the Western Province.

According to Dr. Kannangara, the number of dengue patients admitted to hospital daily had reached 750, but it had declined to around 630. However, he cautioned that infection levels remained “very high,” despite the slight drop in hospital admissions.

The dengue death toll has risen to 24, prompting several hospitals to issue red alerts amid continued pressure on wards treating incoming patients.

Health officials warned that the situation could worsen if case numbers continued to rise. Dr. Kannangara noted that the growing burden on healthcare facilities could eventually exceed system capacity.

The public has been urged to take preventive measures to eliminate mosquito breeding sites and to seek prompt medical attention if dengue symptoms develop.

by Chaminda Silva

News

Ranil warns of another economic crisis, calls for Opposition unity

Published

14 hours ago

2026/06/15

Thilina Walpola

Former President and UNP leader Ranil Wickremesinghe has warned that Sri Lanka is heading towards a severe economic crisis, alleging that the current administration is steering the country towards “total collapse.”

Addressing a meeting of the UNP Working Committee at the party headquarters on Flower Road on Thursday, Wickremesinghe claimed that the government was facing mounting difficulties on multiple fronts, with the economy continuing to deteriorate.

He also accused the administration of pursuing policies that, he said, marginalised war heroes and Buddhist monks.

Wickremesinghe expressed concern over what he described as an erosion of fundamental and legal rights, citing the arrest and alleged ill-treatment of former State Intelligence Service Chief Suresh Sallay as an example. He said the rising cost of living had emerged as one of the main concerns of the public.

Commenting on the political situation, the former President said the Opposition had not been able to forge unity among the anti-government forces and called for greater coordination among Opposition parties and groups. He advocated a phased mobilisation strategy, beginning at village and electorate level, instead of attempting to address all issues simultaneously.

Wickremesinghe also announced a series of political campaigns and rallies aimed at strengthening the Opposition movement. The programme is scheduled to commence in Kandy this weekend, with subsequent events planned in Kurunegala and Kalutara.

He said the UNP was engaged in discussions with several political parties and organisations, including those led by Minister Jeevan Thondaman, with a view to forming a broader political alliance.Wickremesinghe urged party members to expedite discussions and arrive at a collective decision on the way forward to address the country’s challenges.