Business

Sri Lanka urgently needs ‘National Consensus’ on deepening economic crisis, policy analysts and politicians say

Published

5 years ago

2021/11/29

From left: Dhananath Fernando COO Advocata Institute, Prof. Ranjith Bandara, MP SLPP, Dr.Suren Ragavan, MP SLPP/SLFP , Patali Champika Ranawaka, MP SJB, Dr. Harsha de Silva, MP SJB, Vijitha Herath, MP JVP and Sathya Karunarathna, Research Analyst - Advocata Institute.( Pix by Thushara Athapaththu)

The longer reforms are postponed, the worse the problem becomes which makes remedies even more difficult to implement

The only path out is for all parties, the government and the opposition to work together on a common minimum programme of reforms

The reforms are so difficult that no party will want to even contemplate let alone implement them fearing loss of popularity

Sri Lanka is already in one of the worst economic crises in its history

by Sanath Nanayakkare

We are no longer talking about a crisis that is about to engulf us. We are now in its midst, though not its depths. The hope that the 2022 Budget would give the right signals, has evaporated, Prof. Rohan Samarajiva, a leading policy analyst and an advisor of the Advocata Institute said, last week.

He made these comments at Advocata’s latest event , “A National Consensus for Economic Reforms or “ආර්ථිකයට ජාතික සම්මුතියක්?”.

Professor Samarajiva provided a breakdown of severe economic and social challenges facing the country. His keynote speech stressed on the importance of building a national consensus to implement immediate reforms to tackle a wide range of issues ranging from unsustainable debt to shortages of essential items in the country.

The present macroeconomic instability lies in the failure of the state to implement deep structural reforms to the economy for nearly twenty years. The COVID-19 pandemic has exposed Sri Lanka’s fundamental weaknesses that have plagued the economy for a long period of time. The event brought together politicians representing the main political parties to discuss the importance of a united course of action, to drive Sri Lanka’s economy towards a path of growth.

Prof. Rohan Samarajiva, explained the seriousness of the crisis. “We cannot get out of the crisis without taking some bitter medicine. It is increasingly becoming clear that debt restructuring in the context of an IMF (International Monetary Fund) programme is essential. Unlike in previous IMF programmes, we cannot afford to abandon discipline at the earliest opportunity. Unless we own the reforms, we will keep falling back”. He said, stressing that what we need is a common minimum program of reform agreed by many. ” We need an attention-grabbing action that will credibly communicate the intentions of the national government. Divesting Sri Lankan Airlines on the same lines as Air India is a good candidate. The objective is to protect the taxpayers of this country from having to continually cover the losses of this technically bankrupt state-owned company”. He said, highlighting the importance of immediate measures to improve public finances. The national carrier Sri Lankan makes a daily loss of LKR 129.03 Million rupees. In the last four years of operation it has cost the economy 137 billion in the form of accumulated losses.

MP Vijitha Herath of the JJB, reflected on the need for a national consensus. He remarked that “the Sri Lankan economy is in the ICU (Intensive Care Unit). We are right now using minor reforms to push back certain death. But we need surgery to help the patient”, highlighting the need for deep structural reforms. He further commented that there is space for all parties to come together and agree on such a programme of action for the benefit of the nation. However, he laid out conditions for this including the President shedding his executive powers for a collectively agreed upon period of time.

Prof. Ranjith Bandara, MP, SLPP commented that “We need to prioritise the issues we need to solve. We need to be policy consistent in the long term”. Highlighting another key aspect of policy reform to achieve long term stabilisation.

Trade reform is another area to boost productivity and achieve growth. Dr. Harsha De Silva elaborated on this aspect. “Import substitution mentality should be abandoned. We need to face and compete in the competitive international economy. We have been excluded from the global value chain because of our narrow mindset of import substitution and complete self sufficiency”.

Patali Champika Ranawakaa- MP, SJB, commented on the importance of energy sector reforms to address the present crisis. ” The power issue is the next crisis. If the rain dries out for 6 weeks then we are certainly headed to a big power crisis. Substitutes to generating electricity ( kerosene) are also scarce. This crisis could lead to a rift in society” highlighting the urgency of reforming the energy sector. Dr. Suren Ragavan- MP, SLPP, was of the opinion that ” We need national consensus which capitalises on the unique competencies and skills of the different communities” further emphasising on the need for national reconciliation to come out of the present economic crisis as one country shedding communal differences.

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Business

Rs 160 million + diesel discrepancy at Lakvijaya power plant prompts probe

Published

22 hours ago

2026/09/30

Sahan Weerasooriya

The Lakvijaya power plant in Norochcholai.

By Ifham Nizam

A Rs.160 million-plus diesel discrepancy at the Lakvijaya power plant in Norochcholai has triggered an internal investigation, raising questions over the handling of public funds and the controls governing fuel purchased for electricity generation.

The discrepancy surfaced during an internal audit of diesel supplied to the plant from the Kolonnawa and Sapugaskanda fuel terminals, according to senior officials familiar with the inquiry.

The audit has identified five transactions—two in December 2025 and three in January 2026—in which diesel recorded as delivered to the plant allegedly could not be fully accounted for in its physical stocks.

The investigation is now examining whether these were isolated discrepancies or part of a longer-running practice.

One transaction under scrutiny relates to January 16, when records reportedly showed that 10 diesel bowsers had arrived at the plant. Investigators subsequently found indications that the fuel stock corresponded to only nine bowsers.

A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties pending the investigation.

A senior official said investigators were reviewing historical records amid indications that similar discrepancies may have occurred over a longer period. If established, the financial exposure could therefore exceed the Rs.160 million currently identified.

The investigation is comparing fuel-terminal dispatch records, tanker movements, plant-entry records, receiving documents and physical stocks to establish exactly how much fuel was dispatched, received and accounted for.

That audit trail will also be critical in determining who authorised, received and certified the disputed consignments, and whether established controls were followed.

Relevant documents were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.

The internal audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant’s stores. Investigators are examining whether further inventory-management irregularities occurred.

The matter was also reportedly taken to the Puttalam Police Special Crimes Investigation Unit on September 26.

When contacted by Puttalam-based journalist Hiran Priyankara Jayasinghe for The Island Financial Review, Lakvijaya Power Plant Manager Nalaka Kumara confirmed that an investigation was under way but declined to provide further details.

The financial issue is direct: if the plant paid for diesel it did not receive, public-sector funds were spent without the electricity sector receiving the corresponding fuel.

Business

Sri Lanka Food Processors Association holds 29th Annual General Meeting

Published

22 hours ago

2026/09/30

Sahan Weerasooriya

The Sri Lanka Food Processors Association (SLFPA) successfully convened its 29th Annual General Meeting (AGM) on September 23, 2026, at the Water’s Edge Hotel, Battaramulla. Bringing together key industry stakeholders and member organizations, the event served as a platform to review milestone achievements from the 2025/2026 term and outline strategic priorities for the nation’s food and beverage processing sector.

At the AGM, the new Executive Committee for 2027/2028 was appointed, comprising: Honorary President Aruna Senanayake C.W. Mackie PLC Imme. Past President Thusith Wijesinghe Trans Continental Packaging & Commodities (Pvt) Ltd.

President Elect Nadishan Guruge Meadlee Trading Co. (Pvt) Ltd.

1st Vice President Damitha Perera Forbes & Walkers Commodity Brockers (Pvt) Ltd.

2nd Vice President Rasika Seneviratne Diesel & Motor Engineering PLC 3rd Vice President Deepal De Alwis Neochem International (Pvt) Ltd.

Honorary Secretary Amila Weerasinghe Nestle Lanka Limited.

Asst. SecretaryDineth Alahakoon Country Style Foods (Pvt) Ltd.

Honorary Treasurer Sameera Jayathilaka Westmann Engineering Company (Pvt) Ltd.

Asst. Treasurer Niroshan Dalpethado C D De Fonseka & Sons (Pvt) Limited. In addition to the above office bearers, the following ten Executive Committee Members were appointed:

Sanjeewa De Silva Unilever Sri Lanka Limited Sheran De Alwis MA’S Tropical Food Processing (Pvt) Limited

Thusitha Ekanayake Anods Cocoa (Pvt) Ltd.

Vijitha Govinna Plenty Foods (Pvt) Limited Ms. Praharshi Wickramasekara International Commodity Exports (Pvt) Ltd.

Sanjeewa Niroshan SGS Lanka (Pvt) Ltd. Kushan Amarasinghe Finagle Lanka (Pvt) Ltd.

Rangajeewa Hettiarrachchi Fonterra Brands Lanka (Pvt) Ltd.

Harindra Abeyrathna Vision Technologies International (Pvt) Ltd. Thilina Weerasekara Ceylon Cold Stores PLC

The event was proudly supported by key industry partners, with SGS Lanka (Pvt) Ltd serving as the Platinum Sponsor. Unilever Sri Lanka Ltd. and Nestlé Lanka Ltd. joined as Gold Sponsors, Ceylon Agro Industries – Prima as the Silver Sponsor, while Lanka Exhibition & Conference Services (LECS) and Hero Nature Products (Pvt) Ltd., supported as Bronze Sponsors.

The proceedings concluded with a vote of thanks delivered by Hony. Secretary Deepal De Alwis, followed by cocktails and a fellowship networking session, providing an opportunity for members to connect and strengthen industry ties.

Business

Uber brings the ‘business class of back seats’ to Sri Lanka with Uber Black

Published

22 hours ago

2026/09/30

Sahan Weerasooriya

New premium ride option expands Uber’s portfolio from affordable Moto and Tuk rides to premium on-demand travel

Uber announced the launch of Uber Black in Sri Lanka, bringing its premium ride experience to the country for the first time. Designed as the “business class of back seats,” Uber Black combines premium vehicles and highly-rated drivers for riders looking for greater comfort, quality and a more elevated travel experience.

The launch comes as demand for premium products and experiences grows across Sri Lanka, with consumers seeking greater choice and quality in their everyday experiences. Uber Black brings this choice to on-demand mobility, whether for an airport journey, an important business meeting, a special occasion or simply when riders want to travel in greater comfort.