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
Prime Minister meets with U.S. Ambassador and USAID delegation to discuss future of development cooperation

Prime Minister Dr. Harini Amarasuriya, met Ms. Julie J. Chung, U.S. Ambassador to Sri Lanka, and Ms. Maureen Hsia, Acting Mission Director and Programme Office Director for USAID Sri Lanka and Maldives at the Parliament recently. The meeting focused on the evolving framework of U.S. foreign assistance to Sri Lanka and potential avenues for sustained cooperation.
The US delegation briefed the Prime Minister on the recent three-month moratorium imposed on all foreign assistance by the United States, pending a comprehensive review by the U.S. Department of the Treasury. Discussions centered on the implications of this decision, particularly its potential impact on key development initiatives such as the women’s shelter project, and broader humanitarian concerns if current support mechanisms are disrupted.
Both parties acknowledged the critical role of the United States as a global leader in development and emphasized the importance of continuing bilateral collaboration. The Prime Minister welcomed the United States’ commitment to identifying alternative modalities to ensure uninterrupted support for Sri Lanka’s development priorities. In addition, the meeting addressed tariff negotiations, recognizing their relevance in bolstering economic resilience and supporting the country’s long-term growth trajectory.
Also in attendance were Ms. Angelina Hermon, Acting Director of the Office of Governance and Vulnerable Populations, and Ms. Nirmi Vitharana, Project Management Specialist from the Office of Economic Growth. Representing the Government of Sri Lanka were Pradeep Saputhanthri, Secretary to the Prime Minister; Ms. Sagarika Bogahawatta, Additional Secretary to the Prime Minister; and Ms. Pramuditha Munasinghe, Director of the North America Division at the Ministry of Foreign Affairs.
[Prime Minister’s Media Division]
Business
President briefs Sri Lankan delegation leaving for tariff related discussions in Washington

A Sri Lankan delegation is set to participate in discussions in Washington, D.C., focusing on tariff-related matters, following an invitation extended by the Office of the United States Trade Representative (USTR). This is the second in-person meeting aimed at ongoing efforts to strengthen bilateral trade relations between the two nations.
This initiative builds on several prior virtual interactions held between the USTR and Sri Lankan officials, and underscores a commitment to deepening economic ties. The upcoming talks are anticipated to explore avenues for enhancing trade cooperation and securing favourable outcomes for Sri Lanka, in light of current economic priorities.
Ahead of the visit, a high-level meeting was convened today under the leadership of President Anura Kumara Disanayake to ensure the country’s interests are well represented. The discussion focused on aligning the delegation’s approach with Sri Lanka’s broader economic strategy, ensuring the best possible outcomes from the upcoming discussions.
Key participants at the meeting included Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma; Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A. Vimalenthirarajah; Duminda Hulangamuwa, Senior Economic Advisor to the President; Governor of the Central Bank Dr. Nandalal Weerasinghe; Secretary to the Ministry of Finance, Planning and Economic Development K.M.M. Siriwardana; Nirmal Vigneshwaran, representing the Attorney General’s Department; and Dharshana Perera from the Ministry of Foreign Affairs.
Details of the discussions in Washington are expected to be made available following the conclusion of the meetings.
[PMD]
Latest News
Professor I.M. Karunathilake appointed Vice Chancellor of the University of Colombo

President Anura Kumara Disanayake has appointed Professor I.M. Karunathilake as the new Vice Chancellor of the University of Colombo.
The official letter of appointment was handed over to Professor Karunathilake on Friday (23) at the Presidential Secretariat by Secretary to the President Dr. Nandika Sanath Kumanayake.
Professor Karunathilake is a pioneer in the field of medical education in Sri Lanka and holds the distinction of being the first Professor of Medical Education at the University of Colombo. He has been a member of the university’s academic staff since June 2000. He is an alumnus of the University of Colombo and the University of Dundee in Scotland, UK, and also holds senior fellowships from UK’s Higher Education Academy and the Royal College of Physicians of Edinburgh.
Internationally recognized for his expertise in medical education, Professor Karunathilake has contributed significantly at both regional and global levels through his work with leading organizations such as the World Health Organization (WHO), the World Bank, the Asian Development Bank (ADB), the Asia Pacific Academic Consortium for Public Health (APACPH), and the South-East Asian Regional Association for Medical Education (SEARAME).
He has previously served as the Secretary of the Sri Lanka Medical Association (SLMA) and was the founding President of the College of Medical Educationists (CME) in Sri Lanka. He has also served as Vice President of the Organization of Professional Associations (OPA). In 2021, Professor Karunathilake was unanimously elected as Secretary-General of the APACPH, becoming the first Sri Lankan to hold this prestigious position.
With this appointment, Professor I.M. Karunathilake becomes the 20th Vice Chancellor of the University of Colombo, an institution originally established in 1921 as the University of Ceylon.
-
Features7 days ago
Searching for George Keyt
-
Features7 days ago
The Strategic Imperative:Why Sri Lanka Could Transform Indo-Pacific Security Through Space
-
Life style7 days ago
Behind the sparkle
-
Business5 days ago
Dialog Enterprise strengthens data protection and cybersecurity with ISO/IEC 27017 and ISO/IEC 27018 certifications
-
Business6 days ago
Cargills Bank Q1 PAT rises to Rs. 162 million, up Rs. 116 million
-
Editorial4 days ago
Expediency vs. Public duty
-
Midweek Review4 days ago
Journalistic Brilliance Joins Humanity
-
Business4 days ago
Ethical AI and responsible leadership in emerging markets