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Sri Lanka in sorry plight thanks to IMF, says FSP Education Secretary

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By Rathindra Kuruwita

In the early 1990s, Sri Lanka had signed an international agreement undertaking to allocate six percent of its GDP for education, at a time when state revenue accounted for around 23 percent of GDP, Education Secretary of the Frontline Socialist Party (FSP) Pubudu Jayagoda said.

Jayagoda told The Island that in the 1970s, state revenue made up over 50 percent of the country’s GDP.

“Now, revenue has plummeted to around 12 percent, and a few years ago, it dropped to below 10 percent. The same individuals responsible for this decline are now lamenting the lack of funds for health and education,” Jayagoda remarked.

He attributed the decline in revenue to decisions made by successive governments to refrain from engaging in economic activities.

“In 1998, IMF representatives arrived in Sri Lanka and instructed the Chandrika Bandaranaike government to review taxes on foreign investors. This caused our state revenue to collapse. Ironically, the same IMF is now urging the government to increase state revenue to 15 percent of GDP. It’s absurd—the IMF’s advice reduced revenue to nine percent, and now they’re asking us to boost it,” he said.

Jayagoda added that the IMF had recently held a Zoom meeting on Sri Lanka.

“During the meeting, the IMF representatives insisted that international trade should face no barriers. They also advised against measures to protect domestic small and medium-sized enterprises, while advocating for the liberalisation of education, healthcare, and welfare programmes. Furthermore, they called for reforms to labour laws,” he explained.

The FSP Education Secretary warned that if Sri Lanka complied with these recommendations, its industries would collapse, leading to the loss of millions of jobs. Sri Lanka’s current crisis is a direct result of diligently following IMF recommendations, and that the country’s future looked bleak if it continues to heed IMF advice, Jayagoda added.



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Former first lady Shiranthi Rajapaksa arrested by CIABOC

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Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was  produced before the Hulftsdorp court, after  being  arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce

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U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit

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The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.

The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.

The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.

The ship previously made a port call in Sri Lanka on 27 August 2025.

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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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