Opinion
Opposition’s take on economic crisis and Surcharge Tax Bill

Speech made by Oppisition leader Sajith Premadasa in Parliament on 08 Feb 2022.
Hon. Deputy Speaker,
It is an inescapable fact that the Sri Lankan economy is in a deep recession and it is the ordinary people of our country who have to bear the brunt of this economic collapse. The government has always blamed the Covid-19 pandemic as the primary driver of this recession.
Institutions responsible for macroeconomic management are long-established and have the necessary authority to intervene in the event of externalities that may risk our nation’s financial stability.
However, the Sri Lankan economy and its people have been disproportionately affected by the pandemic, especially when compared to peer group nations and I submit to you that this is a direct result of the failure of those in charge of key institutions, specifically, consecutive Ministers of Finance, the Monetary Board and the Central Bank as well as its Governor.
Accordingly, considering that this as an issue of urgent national importance, I expect specific answers and explanations from the Government to the following questions.
Headline inflation, as measured by Colombo Consumer Price Index increased to 14.2% in January 2022 from 3% in January 2021. Food inflation increased to 25% from 6.8%.
Under Section 64 (2) of the Monetary Law Act No. 58 of 1949 if the amount of the money supply has changed by more than 15 per centum (15%), or the cost of living index has changed by more than 10 per centum (10%), of its level at the end of the corresponding month in the preceding year the Monetary Board should submit to the Minister in charge of the subject of Finance and, if not prejudicial to the public interest, make public, a detailed report which includes an analysis of:
* the causes of the anticipated economic disturbances, or of the actual abnormal movements of the money supply or the price level;
* the probable effects of such disturbances or movements on the level of production, employment, and real income in Sri Lanka; and
* the measures which have been already taken, and the further monetary, fiscal, or administrative measures recommended to be adopted by the Government.
If so,
1.
Has the Monetary Board submitted this report to the Finance Minister? If not, has the Finance Minister asked for this report under Section 64(2)? If he has asked for such a report, will steps be taken to table it in Parliament?
2.
If the Monetary Board has submitted a report, what measures has the Monetary Board taken to address the increase in money supply and prices?
3.
What measures have they recommended to the government to address this situation?
4.
What were the main reasons for the rapid increase in inflation? And particularly the increase in food inflation?
5.
How has the increase in reserve money by 37.5% and the quantitative increase in Central Bank of Sri Lanka’s holdings of Treasury Bills contributed to the rise in prices?
Hon. Chairman, Gross official reserves had fallen to US $ 1.6 billion at the end of November 2021 from US $ 5.7 billion at the end of 2020 and US $ 7.7 billion at the end of 2019. The decline signifies a reduction from 4.2 months of import cover to one month within a year.
Under Section 68 (1) of the Monetary Law Act No. 58 of 1949, whenever the Monetary Board anticipates that there may develop a deficit in the international balance of payments of such magnitude as to cause a serious decline in the International Reserve, or whenever there is an imminent threat of a serious decline in the International Reserve, or a potential threat to such stability or are prejudicial to the national welfare, it is the duty of the Board to prepare policies to keep such conditions under control and submit to the Minister in charge of the subject of Finance a detailed report to adopt appropriate remedial measures. That report should contain,
*the nature, causes, and magnitude of the actual or potential threat to the international stability of the Sri Lanka rupee; and
*the measures which the board has already taken, and the further monetary, fiscal or administrative measures which it recommends for adoption by the Government. If so,
1.
Has the Monetary Board submitted this report to the Finance Minister? If not, has the Finance Minister asked for this report under Section 68(1)? If such a report has been asked for, will steps be taken to table it in Parliament?
2.
If the Monetary Board has submitted a report, what measures has the Monetary Board taken to address this decline in foreign reserves?
3.
What measures have they recommended to government to address this situation?
Mr. Chairman, I would like to offer a brief explanation. At this juncture, the Central Bank is officially stating that our reserves stand at $ 2.3 billion at the end of January, down from 3.1 in late December.
While this certainly signals a critical situation, it is made infinitely worse by the fact that this figure of 2.3 billion is misleading, since it also includes an amount of 10 billion Yuan, approx. $1.6 billion, that was received.
Therefore, the reality, Mr. Chairman, is that the foreign exchange reserves of our country at present is approximately US$ 700-800 million. The IMF has stated unequivocally that only assets usable as dollars should be included as reserves. Thus, the actual level of usable reserves – usable capital – within this 2.3 billion they speak of, is only US$ 700-800 million.
In fact, as of today, our reserves are limited to three weeks’ worth of imports. Never in our history have our reserves collapsed to such an extent. Therefore, I would especially like to ask the Minister why such lies are being presented to the country.
Hon. Speaker, the Rs/US $ exchange rate depreciated sharply from Rs.185 in September, 2020 to Rs. 200 by May, 2021. Since May 2021, the rate remained relatively stable until it hit Rs. 210 in September 2021. From September 2021, the Central Bank has “fixed” the rate at Rs. 203. However, the blackmarket price remains somewhere around Rs. 240.
Under Section 65 of the Monetary Law Act No. 58 of 1949, the Monetary Board should endeavour to maintain the par value of the Sri Lanka rupee, or where no determination of such par value has been made, maintain the exchange arrangements and so relate its exchange with other currencies as to assure its free use for current international transactions.
At present, migrants no longer transmit their earnings through the country’s official banks. Accordingly, official migration remittances began to decline from June 2021. This is a drop of more than US $ 1 billion compared to the previous year. Therefore, I would like to ask the following:
1.
Is the Finance Minister satisfied that the Monetary Board is not in violation of Section 65 of the Monetary Law Act?
2.
If so, can the Finance Minister justify the decline in migrant remittances thus far in 2021? Will the Minister of Finance submit a report on the amount of remittances received by this country over the last several months?
3.
If not, has the Finance Minister asked for justification of the exchange arrangements?
Further, Mr. Chairman, I must bring your attention to the bill presented yesterday by this government, which introduces a surcharge tax which will target the working people of Sri Lanka, the backbone of our nation.
You are aware that the largest fund in our country is the Provident Fund, it has approx. Rs. 3 trillion. The profit of this Provident Fund for the year 2020 will be approximately Rs. 250 billion which, according to the provisions of this bill will levy a Rs. 65 bn tax on this profit, thereby siphoning off the working people’s hard-earned savings, only to redistribute said funds to their political patrons and minions.
I request the Minister of Finance, please do not implement this unscrupulous process. Do not steal the money of the hard-working people of Sri Lanka. Please withdraw this Bill / Gazette – with immediate effect. Please do not deprive the people of their hard-earned funds in the Provident Fund.
We know that today, the country is ruled by those who have tapped into provident funds in various ways throughout history. This is the true story. Therefore, I request the Minister of Finance to please answer my question at this juncture – we demand an answer today, the people of this country deserve an answer TODAY. Make that answer clear and unambiguous. I would like to take this opportunity to ask you to remove the provident funds as well as the pension funds from this 25% tax which is a tax on the working people of our nation.
Hon. Chairman, I draw your respectful attention to the comments made by the Minister stating that the rising rate of inflation in the country is merely gossip! This is not gossip, these are facts, these are official figures. How can the Minister refer to these as gossip?
Are the increases in the cost of living and the increases in the price of goods simply rumours? Is the fact that we only possess three weeks’ worth of foreign exchange reserves a rumour as well?
Hon. Chairman, when we ask such an important question related to the remittances of our working people who go abroad and shed blood, sweat and tears, is it acceptable there is no Minister of Finance, and no State Minister of Finance in the House to respond?
Let me try to explain to you in English. At least you can listen. Hon. Chairman – I am trying to explain to you in English. There is a convention when the Opposition Leader is on his feet – on his or her feet – there is a convention, there is a custom that you are allowed to speak and your microphone is not abruptly switched off. Why are you all engaging in such unparliamentary practices? What is this nonsense? Are you unable, from that so-called august chair, to control the microphone? Why are you all abruptly switching the microphone off? As a tradition – there is a convention, there is a custom – that is practiced. Are you aware of Parliamentary practice?
Mr. Chairman, there is no problem if the Minister of Finance is too busy to answer an important question of this nature. Neither a State Minister nor a Deputy Minister is present to answer such a question and that in my view is not only a travesty in regard to Parliamentary tradition but it is also a grave injustice to the People of the Country. Please take necessary steps to include this in the Hansard.
Opinion
KOICA – Volunteer Partner’s Day Meeting 2025

On 20th May 2025, KOICA Volunteer Partner’s Day of year 2025 was held at the Courtyard by Marriott with the presence of the Country Director of KOICA Sri Lanka office Mrs. LEE Yooli, Mr. Samantha Bandara, the Director General of External Resources Department and officials from the Department of Technical Education & Training, National Institute of Education, Schools, Universities, National Youth Services Council, Colombo Public Library and over fifteen (15) volunteer partner organization representatives in Sri Lanka.
At present, there are thirteen (13) KOICA volunteers serving in Sri Lanka and the meeting organized by KOICA (WFK Division) was to share the know-how, experience and knowledgeable resources with the respective partner organizations. The main goals of the knowledge sharing session were to deliver relevant information about the KOICA Volunteer program and to generate insights from the partner organizations that will be useful in recalibrating WFK program’s future direction, including safety and security.
During the session, participants of partner organizations showed their strong need to obtain the services of volunteers, especially for the fields of Korean Language, ICT, Electronics, Social Welfare, Electronics and Auto-Mobile Engineering. Furthermore, they appreciated and emphasized the importance of expanding of KOICA Volunteer Program to rural areas in Sri Lanka.
Since the initiation of KOICA Sri Lanka office in 1991, volunteer dispatch activities have taken place throughout most regions in the country. There has been a significant demand for KOICA volunteers in the educational sphere targeting areas of Korean Language, ICT, etc. The expertise received from Korea has not only shown developmental potential in partner organizations but has also provided invaluable expertise for the youth to excel in the job market.
The Country Director of KOICA Sri Lanka office Mrs. LEE YOOLI expressed her gratitude to all the participants of partner organizations and added “KOICA Headquarters, together with the Sri Lanka Office, is pleased to continue the volunteer program under its ODA endeavors towards Sri Lanka; while introducing new focused volunteer fields in alignment with the SDG goals and the Sri Lankan government priorities.”
In the meeting, Mr. Samantha Bandara, Director General of the External Resources Department, extended his deep appreciation to KOICA for overall technical cooperation towards Sri Lanka and especially, appreciated the services of volunteers who contribute for the social and economic growth of the country, by sharing their expertise and Korea’s development experience.
The Korea International Cooperation Agency (KOICA), the grant aid division of the Embassy of the Republic of Korea, is the Korean government agency for grant aids under the mission of “Contributing to the common prosperity and the promotion of world peace through inclusive, mutual development cooperation leaving no one behind.”
Opinion
Has AKD lost the plot?

The election of the JVP/NPP leader as the executive president of Sri Lanka was no doubt momentous, perhaps, second only to the election of Ranasinghe Premadasa to the same coveted position. Though it was the first time the ‘caste barrier’ was broken, unfortunately, instead of hailing this social revolution Premadasa had other ideas; he attempted to rewrite history by attempting to change his heritage thus missing a great opportunity to show that Sri Lanka indeed was a country of equality and opportunity! AKD shares with Premadasa the same great achievement of reaching the top from very humble beginnings. In addition, AKD is the only leader of the country to be elected from a party with a ‘terrorist’ heritage and many were hopeful that this would not be a baggage. As recent events have shown, it looks as if he is not able to shed that baggage. It is said that a leopard cannot change its spots! This is past repeating itself, as well illustrated by the actions of our first executive president JRJ; he was a manoeuvrer who could not stop doing so, even when he reached the top, which no doubt contributed to his downfall!
AKD started well, just like all his predecessors have done, but wheels seem to be coming off the wagon pretty soon! He continues to behave like an opposition politician continuing with attacks on his opponents, past and present, instead of concentrating on statecraft, to take action to alleviate the suffering of the masses burdened with severe economic hardships and chart a course for future prosperity. Perhaps, this may at least be partly due to his having to face election after election but this should not be an excuse. Prior to the presidential election he portrayed that he was surrounded by groups of experts, of all modalities, who were ready with policies for rapid implementation but these experts seem to have disappeared into thin air! Only experts in economics seem to be from the much-maligned IMF. The message from the voters seems to be falling on deaf ears as shown by absurd explanations given for the erosion of the vote at the last local government elections.
He seems to be a one-man band which, worryingly, dashes hope for the long-promised abolition of the presidency. He would be totally ineffective without the executive powers of the presidency. This seems yet another addition to his unfulfilled promises. He is apparently being supported by a group of amateurs! Prior to elections there was much hype about the PM, a respected academic, who seems to have been pushed to the background. She does not seem to be functioning efficiently even as the minister of education. Ragging continues in universities resulting in suicides. Even worse was the suicide of a student sexually molested by a teacher, humiliated by a friend of the accused teacher, a private tutor who contested on the NPP ticket. The initial punishment for the teacher, till public protests erupted, was a transfer to a distant school. To make a terrible situation even worse was the action of the minister tasked with ensuring the safety of women and children. She claimed that the parents had not met her and handed over a petition.
This lack of leadership is replicated by the President himself. AKD’s mantra during the parliamentary election campaign was cleansing of Diyawannawa but no sooner had the guardian of the house been elected than his doctorate from a private Japanese university was questioned. After much hesitation, the speaker resigned, claiming that he would prove his academic qualifications. He has not done so and he is still an ‘honourable’ MP! Another MP, a female lawyer had the audacity to state that under the NPP government anyone was free to lie and admitted that she had lied about billions of dollars airlifted to Uganda by the Rajapaksas! AKD has taken no action against these MPs.
AKD also had an exposition of the Sacred Tooth Relic to be held in the run-up to the recent local elections. It did not pay dividends may be because the arrangements were in shambles. He visited Vietnam to deliver a lecture for the International Vesak Day but apparently did not find time to pay homage to the Buddha’s sacred relics on display a short distance away from the conference hall. He did find time to lay a wreath at the memorial of the war dead and flew back on a private jet so that he could vote in the LG elections! Another promise broken but it is claimed that a Buddhist society had paid for the private jet!
AKD’s actions regarding the ceremony to remember and honour war heroes clearly shows that he has completely lost the plot. To the shock and horror of all patriotic Sri Lankans, an announcement was made a couple of days ago by the secretary of defence that the ceremony would be presided over by the deputy minister of defence! In short, the commander of the forces is too busy or too reluctant to attend the remembrance of those who sacrificed their lives for the integrity of the country. I doubt it has happened in any country! If he was of the opinion that this event was superfluous or that it hampered reconciliation, he should have had the guts to issue a statement to that effect. Coming from a ‘terrorist’ heritage, the JVP may be having a soft corner for the terrorists killed by the armed forces and may have thought it was hypocritical for him to attend!
As the public outcry could not be patched over, he decided not only to attend the ceremony but also visit the disabled and allow them to take selfies. It is a shame that AKD seems to have developed selective amnesia for his past statements. During the time Rajapaksas were leading the campaign to eradicate the Tigers, AKD was a strong supporter and at times claimed that he told them what to do! What has brought about this change? Was it the backing from the pro-LTTE groups in other countries?
To add insult to injury, during his speech he alluded that the ‘war’ had been fought for political gains. Though it may have produced political gains, doesn’t he realise that it was fought, at a tremendous cost, to defeat terrorism for the purpose of continuing the integrity of the country? He and his acolytes are spreading the canard that this is different as we did not fight a foreign country. Had the Tigers succeeded, we may well be fighting a different country in our little island! His virtual equation of dead terrorists to our fallen heroes added further insult.
Unfortunately, we seem an ungrateful country insulting our fallen war heroes and allowing hypocritical Western nations insulting our living heroes.
by Dr Upul Wijayawardhana
Opinion
Make Sri Lanka Great

Sri Lanka holds immense untapped economic potential, bolstered by its strategic location along major global trade routes, rich natural resources, and a vibrant cultural heritage. Yet, despite these advantages, the nation has faced significant setbacks in recent decades—civil conflict, political instability, economic mismanagement, and rising poverty. Against this backdrop, the call to “Make Sri Lanka Great” is more than a slogan; it is a mission. It represents a collective vision to restore economic stability, promote inclusive growth, and unlock a future of opportunity for all Sri Lankans.
Reclaiming Sri Lanka’s Historical Greatness
Historically, Sri Lanka was a flourishing centre of commerce, education, and cultural exchange in the Indian Ocean. Its location between East and West positioned it as a maritime trade hub linking Asia, the Middle East, and Europe. Ports such as Colombo, Galle, Trincomalee, KKS connected global traders, scholars, and travelers, fostering a dynamic and prosperous economy.
Today, reviving this legacy is crucial. Economic renewal must be anchored in a fusion of historical insight, national unity, and bold innovation. To move forward, Sri Lanka must:
* Reclaim its legacy of knowledge, resilience, and productivity.
* Promote confidence in its global economic potential, encouraging innovation, entrepreneurship, and investment.
* Ensure social inclusion, recognising that unity across ethnic and religious lines is foundational to sustainable growth.
By leveraging its geographic strengths, investing in human capital, and creating a transparent, investor-friendly environment, Sri Lanka can once again become a leading player in regional and global trade.
Economic Challenges
Sri Lanka’s development path is obstructed by a complex web of systemic challenges. An ongoing economic crisis—driven by high debt, poor fiscal discipline, and import dependency—has caused inflation, job losses, and currency depreciation. Political instability and inconsistent policymaking further undermine investor confidence and long-term planning.
Social divisions, rooted in a civil war that ended in 2009, continue to impact national unity. Additionally, youth unemployment and the outmigration of skilled workers are weakening the nation’s human capital. Environmental degradation through deforestation, pollution, and unregulated urbanisation threatens tourism, agriculture, and long-term resilience. Addressing these interconnected issues is essential to laying a foundation for economic recovery and sustainable progress.
A New National Vision
To become truly great, Sri Lanka must redefine development beyond GDP and infrastructure. A developed Sri Lanka should be:
* Economically strong, with robust industries in technology, tourism, agriculture, and services.
* Socially cohesive, where every citizen is treated equally and with dignity.
* Globally respected, as a democratic, peaceful, and environmentally responsible nation.
· Empowering to youth, offering them opportunities to succeed at home, not just abroad.
Foreign-to-Local Citizen Ratios
The Foreign-to-Local Citizen Ratio is more than just a demographic statistic — it serves as a valuable indicator of a country’s openness, safety, and attractiveness to the global community. A healthy ratio often reflects a nation’s ability to provide freedom, security, and economic opportunity to foreigners who visit, live, work, or invest. (See Table)

Foreign-to-Local Citizen Ratios
For example, Singapore’s 44% foreign-to-local ratio has supported its rise as a financial and innovation hub by filling labour gaps and driving productivity. While Sri Lanka’s 1.3% ratio reflects low foreign participation, strategic immigration and talent attraction could contribute to economic revitalisation.
Singapore, the UAE, and Germany have higher foreign-to-local ratios, signaling environments where international residents feel safe, welcomed, and empowered. These nations offer stable governance, clear legal frameworks, and strong institutions that attract foreign workers, investors, and entrepreneurs.
A favourable ratio also shows that a country:
* Ensures security and legal protection for foreigners.
* Provides infrastructure and services that support international living and business.
* Encourages foreign direct investment (FDI) and startup ecosystems by reducing red tape and fostering trust.
* Embraces cultural diversity, creating a dynamic and innovative society.
For Sri Lanka, improving its foreign-to-local ratio can boost its global reputation as a safe, business-friendly, and forward-looking nation. By creating an environment where foreigners feel confident to visit, reside, invest, and contribute, the country can unlock new economic opportunities and accelerate its journey toward sustainable development.
Economic Renewal
To make Sri Lanka great, a comprehensive strategy is required:
* Good Governance: Eliminate corruption, strengthen democratic institutions, and promote transparency and rule of law.
* Economic Transformation: Support local production, SMEs, and ethical foreign investment. Create a resilient, diversified, and export-oriented economy.
* Education and Skills: Modernise the education system to meet future job demands, especially in IT, engineering, tourism, and creative sectors. Expand vocational training to empower youth.
* Social Inclusion and Reconciliation: Promote national unity through inclusive governance, equal rights, and decentralis`ation to ensure all regions benefit from development.
* Environmental Sustainability: Invest in clean energy, eco-tourism, and sustainable agriculture. Protect forests, oceans, and heritage sites to maintain long-term economic and ecological balance.
* Fiscal and Institutional Reform: Improve tax systems, streamline public spending, and create a stable investment environment to manage debt and rebuild confidence.
* Knowledge Economy: Position Sri Lanka as a digital hub in South Asia by investing in R&D, digital infrastructure, and innovation ecosystems.
Conclusion
The country has the potential to follow the path of nations like South Korea, Japan, and Singapore — countries that transformed crisis into opportunity through strong leadership, national unity, and long-term reform. To achieve this, Sri Lanka must embrace good governance, invest in human capital, promote entrepreneurship, and prioritise sustainable development. The nation’s future greatness depends on bold economic transformation rooted in its unique strengths. With a clear vision, inclusive policies, and collective commitment, Sri Lanka can rise above its challenges and secure a peaceful, prosperous, and globally respected future.
Visvalingam Muralithas is a researcher in the legislative sector, specializing in policy analysis and economic research. He is currently pursuing a PhD in Economics at the University of Colombo, with a research focus on governance, development, and sustainable growth. He holds a Bachelor of Arts in Economics (Honours) from the University of Jaffna and a Master’s degree in Economics from the University of Colombo.
by Visvalingam Muralithas
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