News
Sumanthiran leads MPs’ call: Postpone debt repayment now
‘Deepening crisis cannot be addressed solely by meeting foreign loan obligations’
Tamil National Alliance (TNA) MP M. A. Sumanthiran, PC, on behalf of several political parties, represented in Parliament, has requested the government to delay the repayment of foreign debt. Jaffna District MP and the TNA spokesperson Sumanthiran said that he had launched an effort to seek a consensus with his colleagues in his former capacity as the Chairman of the Parliamentary Committee on Public Finance. The group questioned the government strategy meant to address the deteriorating financial crisis.
The following is the text of the statement titled ‘A collective response to our economic crisis’ issued yesterday: “Sri Lanka is in the midst of an unprecedented economic crisis, causing severe hardship to all segments of our society, especially our working people and the poor.
Undoubtedly, the government has a daunting task ahead, and as a country there is a need for us all to come together to overcome this challenge.
At the same time, the government’s approach to resolving the crisis raises some serious questions. Its focus, almost solely on meeting foreign debt obligations, is draining the country of dollars needed for importing essentials for our people. The government’s emphasis on avoiding a default at any cost appears to be downplaying a fundamental question – can our people eat? After all, a country’s pride rests not only in repaying its loans, but also in ensuring no citizen goes to bed hungry.
Recognising this dire situation, a group of leaders from over half a dozen key political parties in Sri Lanka came together in a closed-door meeting on Thursday 27th January 2022, to brainstorm ways to tide over this crisis, given the responsibility we have towards the Sri Lankan people.
I approached parliamentary colleagues and party leaders, in my capacity as a former chairman of the Committee on Public Finance in Parliament. MPs came together in the knowledge that Parliament is expected to have full control of public finance, and that each MP, therefore, also has a fiduciary responsibility to ensure the proper management of public finances in Sri Lanka.
The crisis, we noted, is of a proportion that is historically unprecedented for many reasons:
(1) The country’s ratings have fallen to the level of being blacklisted in international credit markets. Since April 2020, Sri Lanka has been locked out of borrowing using International Sovereign Bonds (ISBs) in the international market
(2) Repaying US dollar debt in this context means that the usable foreign reserves are down to below one month of imports – the lowest on record since independence.
(3) The ratio of interest on debt to government revenue was above 70% in 2020, a historical high for Sri Lanka, and amongst the highest in the world.
(4) The ratio of public debt compared to the value of Sri Lanka’s domestic production (GDP) is also the highest on record, at 120%. It skyrocketed, by almost 25 percentage points, in the last two years.
Each of these situations by themselves would spell a serious economic challenge. Occurring simultaneously, they threaten our future in both the short term and long term.
In this context, the Central Bank’s policy has been to hoard the scarce dollars to pay creditors in full and on time. This has fueled a shortage of dollars for the needs of our own people, and reduced imports of essential items such as food, medicines and fuel. We see the shortage manifesting in long queues for essential items and frequent power outages. The situation will only worsen over the year, if the government does not urgently shift gear and ensure adequate dollars are available to the Sri Lankan economy.
Already, the government’s rash chemical fertilizer policy has impacted farmers across Sri Lanka, leaving us with an imminent food crisis. The government’s current policy path on debt management, as it was in the case of fertilizer policy, is exacerbating the crisis, without a sensible or viable solution in sight.
Our recent meeting provided a platform for political leaders to share the concerns of their constituencies and identify the critical issues that require urgent attention. There was wide acknowledgement that the Central Bank hoarding dollars to make lump-sum debt payments was leading to a shortage of dollars to procure essential supplies within the country. This is resulting in severe economic hardships for the people of Sri Lanka and long-term damage to the economy, while providing windfall gains to the holders of Sri Lanka’s Sovereign Bonds.
We agreed that Sri Lanka should take immediate measures to protect the poor from the adverse impact of this economic crisis, and postpone repaying its debt as a first step. Participating MPs also felt that we need sound reform to the national economic policy to address the root causes of the crisis and ensure sustainable solutions.
This group of political leaders agreed to continue engaging and working together towards ensuring justice for the people of Sri Lanka, through solutions that are sustainable. We must steer the country out of this unprecedented economic crisis, and forge an equitable and just future for our future generations.”
News
Only single MP refuses salary as Parliament details pays and allowances
Only one Member of Parliament has chosen not to receive the salaries and allowances entitled to MPs, Prime Minister Dr. Harini Amarasuriya revealed in Parliament last Thursday, shedding light on the financial perks enjoyed by members of the Tenth Parliament.
Speaking on Thursday (Feb. 19) in response to a question from SJB Badulla District MP Chaminda Wijesiri, the Prime Minister outlined the full range of pay and allowances provided to parliamentarians.
According to Dr. Amarasuriya, MPs receive a monthly allowance of Rs. 54,285, an entertainment allowance of Rs. 1,000, and a driver’s allowance of Rs. 3,500—though MPs provided with a driver through the Ministry of Public Security and Parliamentary Affairs are not eligible for the driver’s allowance.
Additional benefits include a telephone allowance of Rs. 50,000, a transport allowance of Rs. 15,000, and an office allowance of Rs. 100,000. MPs are also paid a daily sitting allowance of Rs. 2,500 for attending parliamentary sessions, with an additional Rs. 2,500 per day for participation in parliamentary sittings and Rs. 2,500 per day as a committee allowance.
Committee meetings held on non-parliament sitting days also attract Rs. 2,500 per day.
Fuel allowances are provided based on the distance between an MP’s electoral district and Parliament. National List MPs are entitled to a monthly allocation equivalent to 419.76 litres of diesel at the market price on the first day of each month.
Despite the comprehensive benefits, only SJB Badulla District MP Nayana Wasalathilaka has opted not to draw a salary or allowances. Dr. Amarasuriya said that in accordance with a written notification submitted by MP Wasalathilaka on August 20, 2025, payments have been suspended since that date.
The Prime Minister also confirmed that she, along with the Speaker, Deputy Speaker, committee chairs, ministers, deputy ministers, the Opposition Leader, and senior opposition whips, have all informed the Secretary-General of Parliament in writing that they will not claim the fuel allowance.
Challenging the ruling party’s voluntary pledge to forgo salaries, MP Wijesiri pointed out that all MPs except Wasalathilaka continue to receive their salaries and allowances. “On one hand you speak about the people’s mandate, which is good. But the mandate also included people who said they would voluntarily serve in this Parliament without salaries. Today we have been able to prove, Hon. Speaker, that except for one SJB MP, the other 224 Members are drawing parliamentary salaries,” he said.
The Prime Minister responded by defending the political culture and practice of allocating portions of MPs’ salaries to party funds. Referring to previous practices by the JVP and NPP, she said: “It is no secret to the country that the JVP has for a long time not personally taken MPs’ salaries or any allowances. I think the entire country knows that these go to a party fund. That is not new, nor is it something special to mention. The NPP operates in the same way. That too is not new; it is the culture of our political movement.”
When MP Wijesiri posed a supplementary question asking whether diverting salaries to party funds was an indirect method of taking care of MPs, Dr. Amarasuriya said: “There is no issue there. No question was raised; the Member made a statement. What we have seen throughout this week is an inability to understand our political culture and practice, and a clash with decisions taken by political movements that misused public funds. What is coming out is a certain mindset. That is why there is such an effort to find fault with the 159. None of these facts are new to people. He did not ask a question, so I have nothing to answer.”
The disclosures come days after the Government moved to abolish the parliamentary pension, a measure that has sparked renewed debate over MP compensation and the transparency of funds allocation.
News
Illegal assets of underworld figures frozen since September, Minister tells parliament
Public Security and Parliamentary Affairs Minister Ananda Wijepala on Friday (20) disclosed in Parliament details of properties and assets allegedly acquired through illegal activities by suspects arrested in raids carried out since September last year.
The Minister made the disclosure in response to a question raised by MP Ravindra Bandara, stating that the identified assets have been frozen pending further investigations.
He said the assets include properties belonging to several alleged organised crime figures, among them Mandinu Padmasiri, alias ‘Kehelbaddara Padme’, who was arrested last year.
Listing the assets in the House, the Minister said Hapugoda Arachchige Kankanamge Duminda Dilruk has assets worth Rs. 23 million frozen, including a van, a motorcycle, a house and a roller gate.
In the case of Kandaiya Kalamogan, two motorboats have been identified, although their value has not yet been assessed.
Dilum Tharaka Balasuriya is reported to own a two-storey house situated on 15 perches of land with a face value of Rs. 800,000.
Assets belonging to Mohammad Harish Mohammad and Mohammad Shiyam were frozen on January 21, 2026. While the total value has not yet been assessed, five vehicles were confiscated from the former and a car from the latter.
Wijesuriya Mahaduruge Uditha Iroshan Wijesiri has assets valued at Rs. 5 million, including a lorry, while Indika Pathmakumara’s assets include a cab worth Rs. 2.5 million and a bank account containing Rs. 1 million.
Lahiru Sampath is reported to own a three-wheeler valued at Rs. 1.8 million.
According to the Minister, Hettiarachchige Dona Sriyani Chandralatha possesses a four-storey house and 14.7 perches of land valued at Rs. 60 million.
Mandinu Padmasiri, alias ‘Kehelbaddara Padme’, owns 20 perches of land with partially constructed buildings valued at Rs. 30 million and a half-finished six-room building worth Rs. 20 million, the Minister said.
Patabendi Maddumage Shehan Sathsara, alias ‘Dehi Bale Malli’, has five multi-day fishing trawlers valued at Rs. 200 million and a two-storey house with 15.8 perches of land worth Rs. 50 million.
The Minister further disclosed that Jayasinghege Maduranga Sampath owns a cab worth Rs. 5.4 million, a van valued at Rs. 14.5 million, five bank accounts containing Rs. 73.03 million, another account with Rs. 160,328.88 and USD 544, and Rs. 283 million in cash.
Adhikari Samantha Perera is reported to own 10.10 perches of land valued at Rs. 5 million and one acre and 1.5 perches of land worth Rs. 13 million.The Minister said investigations are continuing in respect of the suspects and the frozen assets.
News
Entire coal procurement rigged, SJB charges minister over substandard fuel
The entire coal procurement process was rigged, the main Opposition SJB alleged in Parliament on Friday, accusing Energy Minister Eng. Kumara Jayakody of misleading the Cabinet and the National Procurement Committee to favour a supplier of substandard coal for the Lakvijaya Coal Power Plant in Norochcholai.
Moving an adjournment debate on the energy crisis, SJB Colombo District MP S.M. Marikkar charged that the losses incurred from the importation of inferior coal must be fully computed and recovered from those responsible, including damage caused to machinery, additional power generation costs and environmental harm.
He said the SJB had exposed the issue both inside and outside Parliament, alleging that the Government was attempting to cover up large-scale irregularities in the 2026 coal procurement process.
Marikkar claimed that serious fraud, corruption and procedural violations had taken place from the outset. He pointed out that the standard 42-day procurement period had been curtailed to 21 days, thereby restricting competition and preventing many qualified companies from participating.
He further alleged that key eligibility criteria had been diluted, including the requirement that a supplier must have imported 500,000 metric tonnes of coal over the past three years. This threshold, he said, had been reduced to 100,000 metric tonnes to enable smaller firms to qualify.
According to the MP, despite instructions issued by the Committee on Public Finance and the Auditor General regarding the procurement process, the Minister had misled the Cabinet and the National Procurement Committee to deviate from the approved procedure in order to favour a particular company that subsequently supplied substandard coal.
Marikkar alleged that the first, third and fourth shipments had contained inferior coal, which had been mixed with existing higher-quality stocks and used at the Norochcholai plant. He said the resulting losses to the power generation system would far exceed the reported US$ 2 million fine imposed on the importer.
He also highlighted alleged irregularities in the tender process, claiming that the chairman of the tender board had withdrawn after decisions were taken and had failed to attend subsequent meetings.The MP further charged that the Government was attempting to justify impending power cuts by citing a purported shortage of coal.
-
Business6 days agoMinistry of Brands to launch Sri Lanka’s first off-price retail destination
-
Latest News1 day agoNew Zealand meet familiar opponents Pakistan at spin-friendly Premadasa
-
Latest News1 day agoTariffs ruling is major blow to Trump’s second-term agenda
-
Latest News2 days agoECB push back at Pakistan ‘shadow-ban’ reports ahead of Hundred auction
-
Features6 days agoGiants in our backyard: Why Sri Lanka’s Blue Whales matter to the world
-
Sports3 days agoOld and new at the SSC, just like Pakistan
-
News5 days agoIMF MD here
-
Business5 days agoGreen Minds: A new platform to rethink environmental governance in Sri Lanka
