News
‘Parliamentary approval irrelevant, President played politics with issue’
Vote on IMF facility likened to death certificate for a buried man
By Shamindra Ferdinando
Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva said that their decision to skip the vote on the ‘Resolution’ for the implementation of the arrangement under the EFF (Extended Fund Facility) of the International Monetary Fund for Sri Lanka shouldn’t be construed as a rejection of the agreement with the IMF.
The chief of SJB’s economic management team said so when The Island sought his explanation for failing to back the agreement with the IMF, having repeatedly urged President Gotabaya Rajapaksa’s government to seek IMF intervention.
Of the 80 lawmakers who skipped Friday’s vote, the majority belonged to the SJB, the main Opposition party.
Pressed to explain what some called the SJB’s dubious stand, the former UNPer and State Minister said his party strongly opposed certain clauses in the IMF agreement, regardless of the appreciation of Washington headquartered lending agency’s intervention. Asked to explain, Dr. de Silva said that on behalf of the SJB, he had told IMF representatives that a future SJB-led administration would definitely seek to alter those disputable sections.
The resolution received the backing of 120 MPs, whereas 25 voted against it. Three Jathika Jana Balawegaya (JJB) MPs and rebel SLPP MPs voted against the resolution. Three SLPP MPs, who have distanced from the government parliamentary group, namely John Seneviratne, Anura Priyadarshana Yapa and Dr. Sudarshini Fernandopulle, threw their weight behind the agreement, whereas the TNA and the SLFP, too, skipped the vote.
The vote was taken electronically, on 28 April, on the third and final date of the debate.
Dr. de Silva stressed that the agreement with the IMF did not require parliamentary approval at all. Alleging that President Ranil Wickremesinghe sought to exploit the situation to the advantage of his government, Dr. de Silva likened the parliamentary approval for the IMF agreement to obtaining a death certificate for a buried man.
Pointing out that Sri Lanka, over a period of time, sought IMF interventions, on 16 occasions, Dr. de Silva said that no previous government did make a song and dance about seeking such assistance.
Emphasizing the vital importance in securing IMF assistance, amounting to USD 2.9 bn, over a period of four years, the Colombo District MP said that the SJB never wanted to sabotage the process. The Wickremesinghe-Rajapaksa government could have sought a consensus with the Opposition before finalizing the Staff Level agreement with the IMF, on 01 September, last year. Unfortunately, even after that the government quite conveniently kept the Opposition out of the process and the situation remained the same till the IMF Executive Board approved the loan on 20 March, 2023, Dr. De Silva said.
Why on earth a three-day debate is held to discuss a finalized agreement, lawmaker de Silva asked, pointing out that Sri Lanka has received the first tranche immediately after the IMF Executive Board’s approval.
Responding to further questions, the economist said that the IMF agreement, now in operation, essentially focused on stabilizing the economy. However, Sri Lanka needs economic stability, plus growth, the former Chairman of the Committee on Public Enterprises (COPE) said.
Lawmaker de Silva said that 36% tax rate on personal income and corporate profit tax of 30% on exporters weren’t acceptable. “We’ll certainly initiate negotiations with the IMF in this regard,” the one-time Wickremesinghe’s deputy, during the Yahapalana, administration said.
The MP expressed the belief that the government could have secured much better agreement if Sri Lanka’s proposals were presented, after having reached an understanding with major political parties represented in Parliament.
During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.
The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.
Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.
The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.
Latest News
Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.
Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.
The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.
The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.
Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.
The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.
According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.
Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.
The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.
In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.
The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.
The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.
Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.
By Sujeewa Thathsara ✍️
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