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“No fixed timeline” to disburse 2nd tranche of $3 bln loan, IMF official says

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By SHIHAR ANEEZ

ECONOMYNEXT –Sri Lanka’s second tranche of a $3 billion loan from the International Monetary Fund is likely to be delayed as the country has failed to meet the program objective and a global lender’s official said there is no fixed timeline on the disbursement of second tranche.

Sri Lanka’s government revenue is likely to face a 15 percent fall from the target agreed with the IMF, the global lender said, due to poor tax administration and lower collection.

An IMF delegation was in Colombo over two weeks for the first review of the loan before the global lender’s Executive Board approval for the second tranche.

“There is no fixed timeline,” Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF’s Asia and Pacific Department, told reporters at a media briefing on Wednesday after concluding the first review of the loan.

“We are confident that it (the GOSL) will be able to do so with a little bit more time,” he said referring to Sri Lanka’s effort to raise revenue.

The IMF in March this year approved a 48-month, $3 billion extended arrangement under the Extended Fund Facility (EFF) to support Sri Lanka’s economic policies and reforms with the main emphasis on increasing the government revenue, boosting the international reserves, and reducing inflation.

Soon after the approval, Sri Lanka which is going through an unprecedented economic crisis received the first tranche of $330 million. The first review was to assess the country’s performance against the IMF programme objective. Breuer said Sri Lanka is yet to satisfy two key objectives.

“We need two important things to be satisfied. We need to reach agreement on set targets, policies, and reforms that will allow us to go forward… with the understanding that the objective of the programme can be reached,” Breuer said.

“So, now we have discovered there was a little bit of shortfall on one area during this year. So, we are looking to try and find ways to address that shortfall and compensate.

He said working in a direction of having agreement on these policies is an “important prerequisite.”

“Then the other one is in the area of debt,” Breuer said adding that reaching agreement with creditors will help store debt sustainability in Sri Lanka.

“When these two conditions are met, we can go forward. Of course, there is a little bit of administrative process also. It will take some time to write the reports that actually assesses the performance of the first review before steps to be considered by our executive board which will make the final decision on this.



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Health authorities on high alert over Nipah Virus threat

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Sri Lanka has stepped up efforts to detect and respond to a potential outbreak of the deadly Nipah virus (NiV), with health authorities enhancing surveillance and laboratory readiness amid growing concerns in the region.

The Medical Research Institute (MRI), the country’s premier laboratory, has upgraded its testing capacity with the latest technology to identify the Nipah virus, enabling early detection of suspected cases, an MRI source said.

Nipah virus is a highly infectious zoonotic disease that can spread from animals

to humans and also through human-to-human contact. Fruit bats are the natural hosts of the virus.

First identified in Malaysia in 1988, the virus has since caused deadly outbreaks in countries including India and Bangladesh. Experts warn that Sri Lanka, with its close human-animal interactions and tropical climate, must remain vigilant against such emerging infectious diseases.

The case fatality rate of Nipah virus ranges from 40% to 75%, making it one of the most lethal viral infections affecting humans. There are currently no specific drugs or vaccines, with treatment relying mainly on intensive supportive care, health specialists say.

Symptoms of infection initially include fever, headaches, muscle pain, vomiting, and sore throat, followed by dizziness, drowsiness, altered consciousness, and neurological signs indicating acute encephalitis. Severe cases may progress to atypical pneumonia, acute respiratory distress, seizures, and coma within 24 to 48 hours.Authorities continue to urge heightened awareness and precautionary measures, emphasizing that early detection and rapid response are key to preventing outbreaks.

by Chaminda Silva ✍️

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Free Media Movement demands govt. accountability on free speech issues

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The Free Media Movement (FMM) has demanded government accountability on many freedom of expression issues referred to in a statement issued by the Human Rights Commission in a statement issued last week.

The statement under the hands of FMM Convener Lasantha De Silva and Secretary Dileesha Abeysundera says FMM has paid close attention to the statement issued by the Human Rights Commission (HRC) under reference number HRC/S/i/E/03/02/26. It has also informed that global stakeholders, including the International Federation of Journalists—of which it is a member—that are already closely monitoring this matter.

In its statement, HRC has elaborated at length on the issues that have arisen in Sri Lanka concerning freedom of expression and online safety. It specifically points out that the actions of the Sri Lanka Police have been a major contributing factor to these concerns. The Commission notes that recent conduct of the police has indirectly interfered even with the professional activities of journalists.

HRC has also drawn attention to the practice of summoning journalists and other activists before the police without providing clear reasons, in violation of circulars issued by the IGP. In certain instances, the police have stated that journalists were summoned due to alleged defamation arising from media activities.

However, freedom of expression guaranteed by the Constitution is restricted only within constitutionally prescribed limits. Accordingly, defamation that is no longer a criminal offence cannot be acted upon by the police. Such matters constitute civil offences that must be resolved before courts of law. The Commission further observes that attempts by politicians and others to lodge complaints with the Criminal Investigation Department regarding defamation are efforts to portray defamation as a criminal offence.

The HRC statement also addresses the Online Safety Act. While emphasizing the need to be mindful of online safety, the Commission points out that the current law does not address genuine needs. Therefore, as already demanded by many stakeholders, the government has the option to repeal this Act.

In addition, HRC has outlined a three-pronged approach that should be adopted to safeguard freedom of expression, as guaranteed by the Constitution and in line with Sri Lanka’s commitments under the Universal Declaration of Human Rights of the United Nations.

FMM said it is of the view that the Government of Sri Lanka must give serious consideration to this statement and to the recommendations emphasized therein. “This is a moment in which the accountability of the Sri Lankan government is being questioned. Accordingly, the Free Media Movement urges the government to take immediate steps to implement the recommendations set out in this statement,” it said.

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Opposition alleges Govt deliberately delaying PC polls

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ITAK Batticaloa District MP Shanakiyan Rasamanickam accused the government in Parliament on Friday of deliberately delaying Provincial Council elections, pointing to its failure to nominate members to a Parliamentary Select Committee.

The committee, tasked with considering matters related to Provincial Council polls, was announced on 6 January 2026. Opposition parties submitted their nominees promptly.

However, a month later, the government has yet to name its eight members, preventing the committee from being constituted and from commencing its work, Rasamanickam alleged.

Opposition representatives argue that this delay represents intentional inaction aimed at postponing elections. They urged the government to appoint its nominees without further delay to allow the committee to proceed.

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