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

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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.



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US pledges unwavering support for Sri Lanka’s Anti-Corruption Drive

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The U.S. Assistant Secretary of State for South and Central Asian Affairs, Mr. Donald Lu expressed the United States government’s commitment to supporting Sri Lanka’s on-going anti-corruption initiatives as needed during a meeting with President Anura Kumara Dissanayake at the Presidential Secretariat today (07).

Mr. Lu stated that the US is prepared to provide financial and technical assistance to strengthen Sri Lanka’s security and economy. He also emphasized the US government’s willingness to offer technical expertise to help recover funds that were illegally taken out of the country, as part of Sri Lanka’s anti-corruption program.

The discussion highlighted the US government’s appreciation for the new administration’s prioritization of key political, economic, and social challenges. Mr. Lu reaffirmed US support for safeguarding Sri Lanka’s sovereignty and territorial integrity.

President Anura Kumara Dissanayake, speaking at the event, highlighted that Sri Lanka’s political culture significantly influences corruption and waste. He emphasized that efforts are underway to reduce these issues by fostering a new and improved political culture.

The President also spoke about initiatives to uplift rural living standards through improvements to the rural economy and efforts to establish a modern civil service by enhancing the quality of public services.

The meeting was attended by Minister of Labour and Deputy Minister of Economic Development Anil Jayantha Fernando, Secretary to the President Dr. Nandika Sanath Kumanayake, Additional Secretary to the President Roshan Gamage, U.S. Ambassador to Sri Lanka, Ms. Julie Chung, USAID Deputy Assistant Administrator for Asia Ms. Anjali Kaur, Deputy Assistant Secretary for Asia and the Pacific at the U.S. Department of Treasury Mr. Robert Kaproth, USAID Mission Director Gabriel Grau and Counsellor for Political and Economic Affairs Ms. Shawn Gray, among others.

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Atkinson hat-trick, Bethell 96 highlight England’s day of dominance

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Jacob Bethell gets a pat on the back after being dismissed for 96 (Cricinfo)

England have not won a Test series in New Zealand since 2007-08 but they are surely within sight of breaking that drought after a day of utter dominance at Basin Reserve. It was littered with landmarks and milestones: Gus Atkinson’s hat-trick, Jacob Bethell’s  highest first-class score, Joe Root reaching 50 in a Test innings for the 100th time. With three days left in the game, New Zealand already face being set a record fourth-innings chase.

Having wrestled their way into the ascendency on a topsy-turvy opening day, they pinned New Zealand to the canvas from the outset. Atkinson and Brydon Carse utilised what juice remained in the pitch to blow through the last five New Zealand wickets, securing a 155-run lead on first innings. Bethell and Ben Duckett then thrashed 187 runs in partnership to put England in a seemingly impregnable position just five sessions into the Test.

Bethell’s contribution was bittersweet, as he fell four runs short of a first hundred in any format. He nevertheless confirmed the range of his talent, in his second Test and batting at No. 3 for only the fourth time. He drove the scoreboard on after Zak Crawley had fallen in the second over – dismissed by Matt Henry for the fourth innings in succession – and outscored his partner during a free-flowing stand that went at more than 5 an over.

Nathan Smith bore the brunt of their initial onslaught, Bethell twice hooking him into the crowd and also proving strong on the drive. He survived when slashing Smith between keeper and slip, with Daryl Mitchell stood wide, on the way to a 52-ball half-century, and was not afraid to chance his arm as the second-wicket pair cemented England’s position.

Only on entering the 90s for the second time in his first-class career, and having copped a blow from a Will O’Rourke short ball the over before, did Bethell betray signs of nerves. A skied pull off Tim Southee landed in no-man’s land, before he nearly chopped on next ball. Four dabbed through third took him within range of a memorable Test century only to be caught behind aiming an expansive drive.

England’s lead was already past 350 and although Duckett, who was dropped by Tom Blundell down the leg side on 22, also failed to convert after a busy innings ended with a deflection on to his stumps off Southee, there was no let up for the home side after tea as Root and Harry Brook added 95 in untroubled fashion. Brook brought up his sixth 50-plus score in seven Test innings against New Zealand, before holing out off the bowling of Glenn Phillips, while Root also bobbed along to another half-century and into ratified company.

After Ollie Pope fell cheaply, Ben Stokes strode out and threw the bat for another fifty partnership from just 39 balls, suggesting that a declaration may not be far away. While New Zealand have achieved some great escapes in recent memory, not least when the man who now coaches England, Brendon McCullum, helped them to amass 680 for 8 against India at this ground a decade ago, and their pitches have a habit of flattening out, there’s no doubt they were deep in the hole.

One measure of how the day had gone for New Zealand was that their five-man attack managed to bowl zero maidens. Another was that none of their remaining batters faced more than Phillips’ 16 balls as they were steamrollered during the morning session.

Atkinson took the plaudits, having become the first man to take a Test hat-trick at Basin Reserve. It was the latest accolade in a stunning start to the 26-year-old’s Test career, less than six months on from claiming a 12-wicket haul on debut. It made him the seventh player to record a ten-for, a hundred (achieved against Sri Lanka, in fifth appearance) and a hat-trick, and in only his 10th Test – well ahead of the next-quickest, Irfan Pathan (26 matches).

Both Atkinson and Carse claimed four-fors as New Zealand collapsed inside 45 minutes of the morning session. After Kane Williamson’s 37 on day one, no other New Zealand batter made it to 20.

Brief scores:

England 280 and 378 for 5 (Joe Root 73*, Ben Stokes 35*) lead New Zealand 125 (Gus Atkinson 4-31, Brydon Carse 4-46) by 533 runs

(Cricinfo)

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The government’s aim is to bring about a new transformation in the country, grounded in research, evidence, and data. – Prime Minister Dr. Harini Amarasuriya

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Prime Minister Dr. Harini Amarasuriya emphasized the government’s commitment to reshaping the nation’s trajectory during her address at the Digital Library Conference 2024, organized by the National Science Foundation and held on Friday [6th of December] at the Colombo Medical College.

While addressing the audience the Prime Minister stated “We believe that investment in research and development is critical for the government’s development agenda. Our aim is to redirect the country onto a new path, one based on research, evidence, and data, rather than continuing in the same direction as the past 75 years.

One of the greatest challenges we’ve faced in recent years is that, particularly at the highest levels of decision-making, choices are often not informed by science, evidence, or data. This must change. Moving forward, it is essential that decision-makers and the research community collaborate more closely to ensure informed and effective governance, prime minister further added.

The event was attended by the Chairman of the National Science Foundation, Professor Saman Seneweera, Director General Dr. Sepalika Sudasinghe, Head of the National Science Library Resource Center, Manjula Karunaratne, and a group of researchers, librarians and scholars.

[Prime Minister’s Media Division]

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