News
Minister Amaraweera wants IMF bailout, hints at letting national carrier go

ECONOMYNEXT – Amid reports that cash-strapped Sri Lanka’s ruling coalition is split down the middle over an International Monetary Fund (IMF) bailout, another cabinet minister last week spoke in favour of IMF assistance, even going as far as to hint at the sale of the country’s national carrier.
“We will have to go to the IMF. There is nothing wrong with that… since we have no other option,” Environment Minister Mahinda Amaraweera said speaking to reporters on Wednesday (29).
Amaraweera is a member of the Sri Lanka Freedom Party (SLFP), which is increasingly at odds with the ruling Sri Lanka Podujana Peramuna (SLPP). State Minister Dayasiri Jayasekara, the SLFP’s general secretary, had also recently advocated going to the IMF.
“Of course, we need to not accept every condition put forward by the IMF,” said Amaraweera.
“We have been informed that the central bank governor and the Treasury Secretary will be joining the cabinet meeting next Monday (03). I think we will be able to reach a final consensus then,” he added.
Co-cabinet spokesman and Media Minister Dullas Alahapperuma on December 21 told reporters that the cabinet had “exchanged views” on an IMF bailout for the second week in a row but no decision had been made.
Minister Amaraweera, meanwhile, also commented on SriLankan Airlines, the national carrier, and other under-performing state owned enterprises (SOEs).
“At this point, we may have to let go of certain institutes. For example, SriLankan suffers losses in the billions. These losses are borne by people who have never even touched [an aircraft],” he said.
A day before Sri Lanka raised fuel prices last week, Trade Minister Bandula Gunawardena told reporters that the IMF would ask to cut the bloated public sector, reduce the budget deficit, make state enterprises profitable, and raise fuel and electricity prices.
A few days earlier, State Minister Jayasekera said after last week’s cabinet meeting that the IMF imposes conditions such as making state enterprises profitable.
“It is a good thing to do that,” Jayasekera said.
Finance Minister Basil Rajapaksa had already said the state workers and state enterprises were a big burden on the economy.
Older IMF baiout programs typically involve cutting the deficit with tax hikes (revenue based), trimming expenses (spending based) expressed as a net domestic finance target, a foreign reserve target and a reserve money target.
However Sri Lanka’s last failed extended fund facility from IMF program where money was printed within the program to create forex shortages and worsen foreign debt, an inflation target was given and the budget target was defined as a primary deficit.
Instead of a measurable reserve money or ceiling on central bank credit an inflation target was given, allowing the trigger happy central bank to print money and trigger a currency crisis within the program.
Under revenue based fiscal consolidation, state spending soared and the currency collapsed from 151 to 183 under a so-called flexible exchange rate where the exchange flipped from pegged to floating rapidly and interventions were sterilized on top of it.
News
LG Commissioners in dilemma over guidelines and Elections Act

Executive Director of the Institute for Democratic Reforms and Electoral Studies (IRES) Manjula Gajanayake has said the Local Government Commissioners have created confusion and a severe erosion of public trust in the electoral process at local level by adhering to election laws and administrative guidelines selectively without adopting a consistent approach.
The authority to establish local government bodies— particularly the hung ones––has been granted to the Local Government Commissioners in the nine provinces. However, this process has now sparked controversy largely due to ambiguity over how to elect council heads.
At the heart of the issue is the Local Government Elections Act, which does not specify the procedures to be followed in electing the heads of local bodies. To address this issue, the Secretary to the Ministry of Local Government and Provincial Councils has issued a 28-page set of guidelines. This guideline gained much attention during the election of the Mayor of the Colombo Municipal Council, where opposition members claimed that the head of the council had to be elected according to the guidelines in question. However, the guidelines merely state, “Each member should be consulted, and the method of voting should be decided accordingly.”
The Opposition seemed to have ignored that there were three acceptable methods of voting––by a show of hands, through a secret ballot, or by using an electronic system, Gajanayake said. Still, the real issue lies in the application of the guidelines by the Local Government Commissioners.
For instance, the Western Province Commissioner opted for a secret ballot in the Colombo MC. In contrast, in many other councils, the voting method was determined based on the preference of the majority of members. In Local Government Institutions in Uva, North Central, and North Western provinces, where members called for open votes by the show of hands— the commissioners complied.
However, inconsistency re-emerged in the first meeting of the Seethawakapura Urban Council of the Colombo District in the Western Province. Out of 25 members,14 requested an open vote. The Commissioner, however, insisted on a secret ballot. As a result, all 14 members walked out in protest, and the meeting was adjourned without electing a head.
By PRIYAN DE SILVA ✍️
News
Hotel shooting: Weligama police probe riddled with flaws, CID tells committee

CID Director of Investigations Ashoka Shelton Karunathilaka told the Parliamentary Inquiry Committee probing the interdicted IGP Deshabandu Tennakoon that numerous flaws had been found in the investigations carried out by the Weligama Police into a shooting incident at the W15 Hotel.
Giving evidence before the special inquiry committee, chaired by Supreme Court Justice Preethi Padman Surasena, Karunathilaka said that the Weligama Police had proceeded with their investigation riddled with flaws. “Even the locations of spent bullet casings at the crime scene were not properly marked. There was a mismatch between the empty bullet casings and the recovered ammunition. Additionally, CCTV footage from the crime scene area shows inconsistencies.These investigative shortcomings were the reason why legal action was taken against the OIC of the Weligama Police Criminal Investigation Division. Moreover, no proper investigation was carried out into the police officer who was fatally shot.”.
The committee met for the eighth day on Wednesday, when seven witnesses testified. The final witness of the day was Karunathilaka, who pointed out the deficiencies in the initial investigations by the Weligama Police.
At this point, counsel S. Weerawikrama, representing Deshabandu Tennakoon, questioned whether the warrant for Tennakoon’s arrest had been obtained under political or ministerial pressure.
Karunathilaka answered in the negative.
During the session, counsel Weerawikrama raised his voice while cross-examining the witness, prompting one of the committee’s judges to advise him to ask questions without getting agitated.The day’s proceedings concluded with the committee recording the testimonies presented by the prosecution, led by Deputy Solicitor General Dileepa Peiris.
By Kamal Bogoda
News
Harshana resigns from Parliament

Secretary General of Parliament Kushani Rohanadeera has informed the Chairman of the Election Commission in writing that a vacancy has arisen in Parliament due to the resignation of Dr. Harshana Suriyapperuma.
Dr. Suriyapperuma, a National List Member of Parliament representing the NPP and the Deputy Minister of Finance and Economic Stabilization, submitted his letter of resignation to the Secretary General of Parliament, Kushani Rohanadeera.
According to the letter submitted by Dr Suriyapperuma, the resignation is effective from June 20, 2025.
Accordingly, the Secretary General has informed the Chairman of the Election Commission that, in terms of Section 64(5) of the Parliamentary Elections Act No. 1 of 1981, the seat held by Dr Harsha Suriyapperuma in the Tenth Parliament is now vacant.
Speculation was rife at the time of going to press that Dr. Suriyapperuma would be appointed Secretary to the Finance Ministry.
-
Business2 days ago
Foreign Direct Investment records 90% Increase in First Quarter of 2025
-
Business2 days ago
The World of the Black Leopard
-
Features6 days ago
When the water rises: Climate change and the future of Yala’s Mugger Crocodiles
-
News4 days ago
Senior SLAS officer succeeds Bogollagama as SL’s UK HC
-
News3 days ago
Ministry of Foreign Affairs, Foreign Employment and Tourism, accelerates digital transformation
-
Features2 days ago
A legendary military leader of our time
-
Business2 days ago
War and panic take their toll on bourse which recovers somewhat at close
-
Business3 days ago
Spring board to ‘unleashing a new era in start-up driven growth’