The Governor of the Central Bank, Nandalal Weerasinghe, stated that it is the government’s responsibility to act in accordance with the parameters of the IMF’s overall macroeconomic stabilization program and that, in line with this, the current budget is a good one for the country.
Expressing his views on the budget in Colombo, he said:
**”Looking at the targets, this time we can place greater confidence in them. Although the expected revenue target is 5 trillion rupees and the primary surplus is anticipated to be 2.3%, based on my expectations, the performance may even surpass these figures.
Furthermore, implementing safeguards to absorb the short-term pressures on government securities is crucial. This would allow us to maintain stable interest rates in line with our monetary policy.
If we talk about an ‘IMF budget’ as some suggest, as someone who has been involved in discussions with the IMF for many years, I can say that the commitments made to external stakeholders for achieving overall economic stability as a country have remained unchanged. Even if there is a change in administration, it is reassuring that the direction of macroeconomic policies has not shifted.
In my view, this is something that must necessarily happen. Acting in accordance with the IMF’s overall macroeconomic stabilization framework is not only the government’s responsibility but also a positive sign. As I see it, this is not an ‘IMF budget’ but a budget that is good for the country.
Colombo, Feb 18 (Daily Mirror) – The Colombo High Court today granted bail to Sri Lanka Podujana Peramuna (SLPP) Parliamentarian Namal Rajapaksa after serving him with indictments in connection with the controversial Krrish deal case.
Colombo High Court Judge Manjula Tillekaratne ordered Namal Rajapaksa to be released on a cash bail of Rs.100,000 with two sureties of Rs. 10 million each.
The court further ordered that his fingerprints be obtained to ascertain any previous criminal records.
Meanwhile, the court fixed the pre-trial conference for March 27.
The Attorney General filed criminal proceedings before the High Court against Namal Rajapaksa over the alleged misappropriation of Rs. 70 million belonging to Krrish Company.
The indictments were filed before the Colombo High Court by the Attorney General, alleging the misappropriation of Rs. 70 million provided by the Indian real estate company Krrish Lanka Pvt. Ltd. for the development of rugby in Sri Lanka.
Colombo, Feb 18 (Daily Mirror) – Considering the benefits provided to state sector employees in the 2025 budget, doubts arise over the effectiveness of decisions made regarding the public service, United Postal Trade Unions Front (UPTUF) Co- convener Chinthaka Bandara said.
Addressing the media, he said this budget can be described as one that creates a problematic situation in terms of people’s expectations.
“This budget will determine how the public service will be implemented in the country. We do not see any significant benefits for the people from this budget. The salary anomaly issue in the education sector remains unresolved. It is clear that the current government will not address the salary issues of state sector employees even within the given three years. The budget only included a Rs. 15,750 salary increment for state sector employees,” he said.
Therefore, state sector employees are not satisfied with the proposed salary increments in the budget. Nothing was provided to support the cost of living for the people, and no tangible benefits were offered, he added.
“As trade unions, we hope to be directly involved in the budget process,” Bandara said.
Colombo, Feb 18 (Daily Mirror) – The All Island Canteen and Restaurant Owners’ Association (AICROA) has decided to increase the prices of all canteen and hotel food items from midnight today.
Association Chairman Harshana Rukshan said that the price of a cup of plain tea will increase by Rs. 5, a cup of milk tea by Rs. 10, a plate of fried rice and kottu by Rs. 30, and the prices of short eats by Rs. 10.
Addressing the media, he said that no concessions were provided for canteen and restaurant owners in the recent budget.
“Even though the price of a packet of salt has increased to Rs. 200, the price of an egg has risen again to Rs. 35, a kilogram of chicken costs more than Rs. 1,000 and the price of coconuts has reached a maximum of Rs. 220, we did not request the President to reduce the prices of any of these items.
“Unfortunately, no support has been provided for the protection of canteens and restaurants in the country,” he added.
Colombo, Feb 18 (Daily Mirror) – Ceylon Teachers’ Union (CTU) Secretary Joseph Stalin claimed today that the government has not addressed the issue of teachers’ salaries in the recent budget.
Addressing the media, he said that both the President and the Prime Minister had assured that the existing salary issues would be resolved in the 2025 budget.
He reminded that state employees staged protests demanding a Rs. 20,000 salary increment, while principals and teachers protested for the remaining two-thirds of their salary anomalies to be rectified according to the Subodhini Committee report. However, according to the budget, the salary increase has only been planned for three years, suggesting that there will be no budget allocations for 2026 and 2027.
With the reduction of the Rs. 7,500 allowance, there will only be a Rs. 6,225 salary increment by April 1 for Grade 1 teachers and principals. Teachers in Service Grade 2.1 will receive an increase of Rs. 4,056, those in Grade 2.2 will receive Rs. 2,061, and teachers in Grade 3.1 will receive only Rs. 860.
“We all expected a Rs. 20,000 salary increment, but not a single word was mentioned about implementing the two-thirds of the remaining salary increment approved in the Subodhini Committee report. The budget only referred to an increase in the basic salary by Rs. 15,000,” Stalin said.
“The teachers who took to the streets in protest were assured that their demands would be met, but now they have been let down by the government. The future decisions of teachers and principals will depend on the government’s response to their concerns,” he added.
Colombo, Feb 18 (Daily Mirror) – Following recent controversial remarks to the media, MP Nilanthi Kottahachchi has been adviced to refrain from making statements to the media.
“I ‘m sorry, I am unable to make any comments to the media as I have been instructed by the party not to speak to the media,” she stated when reporters posed a question to her on Sunday (16) during the Clean Sri Lanka programme in Gimpatha, Keselwatta.
The Agricultural and Agrarian Insurance Board says that measures will be taken to swiftly provide insurance compensation to farmers in districts that have not yet received payments for crops damaged by the floods last November during the 2024/25 ‘Maha Season’.
Accordingly, Rs. 202 million is expected to be credited to the back accounts of 9,368 farmers in the Batticaloa District tomorrow (19).
Furthermore, the board stated that Rs. 98 million will be credited to compensate 6,671 farmers in the Trincomalee District for their damaged crops by February 21, the board said.
Thus far, a total of Rs. 306 million has been credited to the bank accounts of a portion of the farmers in the districts of Polonnaruwa, Vavuniya, Mullaitivu, and Trincomalee as insurance compensation of the crops damaged.
Sri Lanka’s budgeted expenditure for 2025 will likely lead to a wider fiscal deficit and slower-than-expected fiscal consolidation, Moody’s Ratings said on Tuesday, a day after the island nation unveiled its budget.
Sri Lanka aims to transform its crisis-hit economy to prepare to resume debt repayments from 2028, President Anura Kumara Dissanayake said on Monday while announcing the budget which is seen as a key step towards returning the country to durable, long-term growth.
The budget is mostly in line with targets set under a $2.9 billion International Monetary Fund (IMF) programme, including a key 2.3% primary account surplus goal.
Expenditure is estimated at 21.8% of GDP as Sri Lanka directs more resources towards welfare and infrastructure development, analysts said, while revenue will be 15.1% of GDP.
The budget has set a deficit target of 6.7% of GDP, which falls short of a 5.2% goal for 2025 preferred by the IMF.
The budget underscores the challenge that Sri Lanka’s fiscal authorities will continue to face because of its still weak debt affordability, still narrow revenue base, and underlying social constraints,” said Christian Fang, vice president – senior analyst at Moody’s Ratings.
Sri Lanka is aiming to grow 5% this year, Dissanayake told parliament, emphasising the need to support small businesses and key economic sectors such as tourism and tea to put the island nation’s economy on a sustainable recovery.
Sri Lanka’s economy went into freefall three years ago after running precariously low on dollar reserves, leaving it unable to afford essentials such as fuel, medicine and cooking gas.
Helped by the IMF bailout secured in March 2023, the island’s economy has partly recovered and completed a $25 billion debt restructuring with bilateral creditors and bondholders last December.
Sri Lanka is awaiting IMF approval for a fourth tranche of about $333 million.
President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, presented his maiden Budget Speech in the Parliament today (17).
The 79th budget of the Independent Sri Lanka aimed at developing the country in a way that enables it to repay debt when repayment commences in 2028 today (17), encapsulated three main facets;
i. Growth of production of industry, services and agriculture. ii. Production must take place with the active engagement and participation of people. iii. The benefits and gains from production must be equitably shared across society.
The Head of the State also noted that this years’ budget is prepared based on these principles, and that the government intend to set a foundation to create an economy where all citizens are active participants, active stakeholders, and active beneficiaries.
According to the Head of State, the budget deficit for the fiscal year 2025 is estimated at Rs. 2,200 billion, which is 6.7 as a percentage from the GDP.
The total expenditure for next year will be Rs. 7,190 billion, which is 21.8% of the country’s GDP and the total revenue and grants will be Rs. 4,990 billion (15.09%).
The government has allocated Rs. 5,886 billion for recurring expenditure such as subsidies and salary payments. For salaries and wages, Rs. 1,230 billion has been set aside, and Rs. 1,290 billion for subsidies and transfers.
Why has the price of gold been increasing so fast, breaking records? Economist Michael Hudson explains the politics of the precious metal, and the dynamics of the US dollar system.
Since the JVP/NPP’s arbitrary decision to curtail former president Mahinda Rajapaksa’s security and have him relocated to less expensive accommodation is now being legally challenged through an FR petition lodged with the Supreme Court in Colombo, nothing more needs to be said here about it. What I am doing here instead is to express a personal opinion for what it is worth, about something that is of utmost national importance. The interests of the country (nation) matter more than those of individual politicians or political parties. That is why inclusive nationalism (not ethnonationalism or racism) is vital at this juncture. It is an open secret now that almost all our leaders, with a few honourable exceptions, are being led by the nose by foreign powers (at loggerheads with each other, pursuing their own respective national interests) as Sri Lanka is located in a geostrategically sensitive point in the Indo-Pacific Ocean. Our response to the inevitable aggression that we have no choice but to face should not be politicised within the country. As a patriotic senior Sri Lankan living outside Sri Lanka with absolutely no stake in its current affairs or future prospects, I earnestly request all the MPs and the President with due respect to ponder on the useful implications of what I have just stated. It is their responsibility to look after the people/country (‘raja dhamma paja rakkha’ (the ruler’s duty is to protect the people) through wise statecraft at home and suave diplomacy abroad.
To return to my subject, the question why probably the NPP is going after Mahinda Rajapaksa, though not a mystery, remains to be considered. I hope that this will not be misconstrued as propaganda for Mahinda Rajapaksa who, I believe, is politically ‘out of combat’ because of his advanced age, and should now be in quiet retirement. His significance, though, as the foremost champion of nationalist politics has not diminished yet. Out of the five living past presidents, Mahinda Rajapaksa, when in power, was recognised as the most authentic face of Sri Lankan nationhood. He cut an imposing figure on the world stage. In accordance with usual diplomatic protocols, top level foreign state visitors still regularly pay him courtesy calls. Foreign ambassadors resident in Sri Lanka have formal goodwill meetings with him occasionally. As he wrote in an X post, he had a meeting with Indian High Commissioner Santosh Jha on February 5, 2025.
I never hero-worshipped Mahinda Rajapaksa. Quite a number of my articles that I wrote as a nonprofessional newspaper columnist, especially those written over the past eighteen years (2007-2025) and published in The Island and elsewhere, bear testimony to this. I have criticised Mahinda Rajapaksa more than I have praised him. I always offered constructive criticism of his politics, both when he was in power and when he was in the opposition.
My criticism of Mahinda Rajapaksa was basically focused on three areas: what I saw as his family-bandyism or nepotism (giving his own sons,siblings and other kith and kin priority in his public/political life, often to the disadvantage of more deserving others), his harmful, unnecessarily secretive approach to wooing the support of the minorities while taking the loyalty of the Sinhalese Buddhist majority, his main support base, for granted, and his lenient treatment of some of his closest associates who were up to no good.This made me describe him once as ‘a flawed diamond’ (a borrowed metaphor that surfaced from the depths of my ancient literary memory). More recently though, I found myself using such pejorative adjectives as ‘ruinous’ and ‘rascally’ in reference to the Rajapaksas, for squandering, as I believe, the benefits that accrued to the nation from the heroic victory of 2009 over separatist terrorism. That it was a national victory that would not have materialised but for the invaluable contributions of the Rajapaksas is a different matter.
The barefaced geopolitical meddling that intensified after the end of terrorism in 2009, seriously undermining the stability of unitary Sri Lanka, according to my understanding, was greatly facilitated by the three blunders mentioned above that MR could have avoided had he had enough foresight to keep in check his ego-propelled dynastic ambitions. It looked as if his concern for the youth of the country didn’t go beyond his own sons and nephews. He never wanted to allow someone outside his family to succeed him. Had he at least made Maithreepala Sirisena premier (instead of the late D.M. Jayarathne, even then a doddering old man) in 2010, the disastrous upset of 2015 would not have come about so easily (though engineered from outside).
The ‘baiyas’, who are ready to forget and forgive their old champion for services done, will not take kindly to the NPP for harassing him. If there are plausible allegations of financial or other crimes against him and his family, let them be investigated and let them face the full force of the law. But mere unsubstantiated allegations should not be bruited about as political propaganda against them. This is what I emphasised in a column under the title Prosecute, but don’t persecute” published in The Island on May 28, 2015 (that is, almost ten years ago). Who might want him persecuted? His political opponents and those who are baying for Mahinda Rajapaksa’s and his brother GR’s blood for defeating separatist terrorism, who seem to be allies now.
Let’s now turn to his would-be nemesis Anura Kumara Dissanayake. At the last presidential election held on September 21, 2024, as the leader of the Jathika Jana Balavegaya (JJB) alliance, popularly known as the Malimawa, Anura Kumara Dissanayake was declared winner after obtaining just over 42% of the total votes cast across the country. He beat his nearest rival Sajith Premadasa, leader of the Samagi Jana Balavegaya (SJB), who was supported by only about 33% of the national electorate. But the important thing is that there was little for AKD to crow about in this victory. Had it not been for the split between Sajith Premadasa and his former boss Ranil Wickremasinghe the leader of the almost defunct United National Party (UNP) that he left to form the SJB, Anura Kumara Dissanayake would hardly have become president. (I have criticised both Ranil Wickremasinghe and Sajith Premadasa, too, while admiring some of their personal attributes, as I did in ‘A role for Sajith and UNP ginger group’ published in The Island/August 28, 2019).
Let’s also remember the fact that AKD’s presidential win on September 21, 2024 and the Malimawa’s seemingly impressive performance at the subsequent parliamentary election held on November 14, 2024 were heavily qualified by certain factors that render both successful outcomes (i.e., Malimawa’s presidential and electoral victories) seem accidental, i.e., they are not truly representative of the significant asymmetries of public opinion between regions and communities, for it is probable that the different racial and religious communities that voted for the Malimaawa expect different things from the NPP government in return. The Malimaawa win seemed almost an electoral aberration.
The wild promises made by the JVP/NPP for getting elected were probably nonchalantly exaggerated due to their unstated private assumption that they were not going to face the hazard of being required to deliver on those promises, as they never expected to win with such a massive majority. For example, what did the Malimawa promise the voters in the North and East, who are predominantly Tamil speaking ethnic Tamils and Muslims respectively, not forgetting the Sinhalese minority living with them, to win their collective support? Were these promises identical with what the Malimawans pledged before the ethnically mixed population in the rest of the country where the Sinhala speakers form the overwhelming majority? Did the Malimawa politicians work to bring about a uniform and consensual awareness of their principal electoral platform of fighting endemic corruption among politicians and bureaucrats, and what they have erroneously identified as ‘the atrocious legacy of the past 76 years’ (alleged wrong policies and corrupt practices of politicians in power in the post-independence period to date)? Do these Malimawans believe that their approach to the first and their specific conception of the second are being accepted and embraced by the average citizens in every part of the country with equal conviction and enthusiasm?
‘Before you study the economics, study the economists!’
e-Con e-News 09-15 January 2025
*
‘I know that return to my island is quick & to my political life is impossible.
The pace of colonial events is quick, the turnover of political leaders rapid.
I have already been forgotten; and I know that people who supplanted me
are themselves about to be supplanted. My career is by no means unusual.
It falls into the pattern. The career of the colonial politician is short & ends
brutally. We lack order. Above all, we lack power. Wemistakewords, and
the acclamation of words for power; as soon as our bluff is called we are lost.
Politics for us are a do-or-die, once-for-all charge. Once we are committed
we fight more than political battles; we often fight literally for our lives.
Our transitional or makeshift societies do not cushion us. There are no universities or
City houses to refresh us and absorb us after the heat of battle. For those who lose,
and nearly everyone in the end loses, there is only one course: flight.
Flight to the great disorder & emptiness: London & the home counties.’
– The Mimic Men (1967)
This passage is from VS Naipaul, this Trinidadian’s work of fiction about a colonial leader exiled in England. Dystopian. ‘We lack order’. Really? We deliver tea, rubber & coconut on time, don’t we. To others. But then, Naipaul too is a mimic man who mouths the colonial tale, faithfully parses its chattering points. The English appeared to like him so much, they even anointed him a knight! Sir Vidhya… Sans a horse or a lance. Sans a continental missile. Or even dynamite. They only gave him that dynamite & oilman turned missile-maker’s Nobel Prize. They only permitted him a pen (at that time, perhaps, patted on a typewriter, massaged by his English wife, published in London in 1967). But it was a sponsored pen. He liked to laugh at Black people’s delusional foibles, in thinking we can long escape the enslaver, with our silly permitted ‘protests’ & ‘demonstrations’ & ‘independences’. It is the type of literature adored by our mimic literati at their English literary festivals, run by tourist agencies (aka land speculators aka plane & car importers) and the English banks (HSBC, Standard Chartered etc.) that ‘sponsor’ them, where they play at words.
Naipaul is from the Caribbean. To which Sri Lanka is umbilically tied. A colony of Tate & Lyle (yes, the Tate of that ‘London Art Gallery’). Yes, a sugar plantation! Naipaul is an Indian. The indentured Indians were taken to supplant the Africans, who were themselves enchained to supplant the ‘native’ Amerindians, whose land they stole, where now the whites feel at home. Sound familiar?
Note: it is written in an almost passive voice. Who is it who ‘supplants’ our leaders? Tate & Lyle. Unilever. ‘Leaders’ in the US & Canada are usually employees of Mr Rockeller’s Exxon Corporation (in Sri Lanka, perhaps known as Caltex, Chevron, etc). Many multinational corporations (MNCs) operating in Sri Lanka, have larger budgets than so-called sovereign nations combined… Naipaul, by the way, was critical about his father, a journalist. His father had not fathomed the ‘postcolonial’ shift in the power centre post-1945, from London to Washington, and failed to give lip, cater to those interests…and had a nervous breakdown. Sir Vidhya chose not to….
In media in Sri Lanka, foreign news means BBC and CNN… English affairs ancient and modern, artistic, literary and other, therefore led the way to this week’s arrival of the latest English minister-in-charge of colonies, now appropriately named ‘West’ and entitled ‘Minister for Indo-Pacific’ – an English verbiage no doubt ordered by USA’s NATO. And just as s/he/it arrived, a northern politician threatened to demolish a Buddhist temple… Meanwhile in Munich (‘Little Monk’) a security conference was arranged, with the US Vice-President’s speech presaged by an attendant ‘terrorist attack’ blamed on an Afghani ‘refugee claimant’, while in Palestine, the Anglo-American mince-meating of the innocents was continued, producing more refugees… and headlines…
This last week (look at ee’s news compendium below if you dare), the English media in Sri Lanka was preoccupied with the antics of the US agency with ‘AID’ suffixed to its title, whose origins along with the ‘internet’ are in ensuring the repression of any real (industrial) resistance to continuing colonized underdevelopment:
*
The SLPP delegation asking Chung to investigate how USAID funds
were disbursed in Sri Lanka is like setting a thief to catch a thief,
thief & the master of the house combining!
– Sena Thoradeniya (see ee Sovereignty,
It’s time for Julie Chung to Bow out Gracefully!)
*
While there was much talk of USAID interference in Sri Lanka, the truth is Sri Lanka’s economy & related political life have long been tied to the capitalist system, with our artists & economists (they are artists too, with their prevarications) in tow.
In this ee Focus, Shenali Waduge asks, ‘Are there any economists in Sri Lanka who can give an alternative to IMF?’, a question ee is somewhat dedicated to. Waduge wonders: ‘Why are Sri Lanka’s economists ignoring ground realities of IMF conditions? When water, food production, fuel, gas (essentials to citizens) fall out of government hands into international corporate hands or even local corporate hands & when these entities begin to raise prices at will, when they decide to deny supply – what can citizens or the government do, especially when companies are now taking governments to international courts…’ Indeed our economists & literati are stipendiaries of various colonial embassies.
ee Focus also reproduces Usvatte-aratchi’s inquiry into ‘Education & Schools’. He points out: ‘The modern equivalents of liberal arts are mathematics and science’. Well, tell that to the funny literati who claim to inform and entertain us, like monkeys (who can also turn off the lights!). Usvatte-aratchi describes how: ‘The relationship between universities and the economy & society was rapidly transformed in the latter half of the 19th century. From an institution that the church dominated, universities became partners in innovations in the economy.’ He should have emphasized this was largely a European phenom. Indeed, as one ‘young Joseph Needham’ (so intimate we are!) was told, ‘the future lay in ‘atoms & molecules, atoms & molecules, my boy’.
*
The expression ‘Green Revolution’ is said to have been first used by
an administrator of USAID to describe developments in Asian Agriculture following
on the introduction of IR8 by the International Rice Research Institute in 1966
*
Rice & its prices were also another preoccupation of the media, which variously blames local millers & politicians, but leaves out the role played by the English in the destruction of the ancient village irrigation systems, and as usual leaves out the names of such players as England’s Unilever & BAT’s Ceylon Tobacco & ICI’s CIC, et al…
Which is why ee continues to reproduce SSA’s Capital & Peasant Production: Studies in the Continuity & Discontinuity of Agrarian Structures in Sri Lanka, this time introduced by Newton Gunasinghe. He records the ‘unprecedented boom’ in the 1980s of research institutes (state & NGO) and superficial academic analyses of agrarian studies, which all fail to unearth the underlying interests and attendant weeds, leading to:
‘Indeed, ironically the most pronounced facet
of the Accelerated Mahaweli Development Project
seems to be the accelerated speed at which the
resettled peasant is being evicted from his land.’
The Introduction scans the book’s various analyses, the overriding of local initiatives that developed local seeds resistant to disease, soon supplanted by varieties requiring imported fertilizers by ICI’s CIC, etc (yes, ICI’s CIC who pays devalued rupees for the recurring media meme that somehow an organic fertilizer policy was to blame for the melting-down)… It also looks at the role played by England’s Ceylon Tobacco Co, and the growth of agricultural ‘entrepreneurs’… and the failure to examine the variety of agrarian systems in the country that promote the pauperization of the peasant.
Gunasinghe also mentions SBD de Silva’s examination of the backwardness & stagnation, which he attributed ‘to labour-intensive methods of production, which ruled out technological innovations, [to] the control exercised by agency houses over the plantations which were basically trading monopolies, and the separation of ownership & management…’
*
Hit your competitors in the pocket book, hit ’em hard.
Then you either buy ’em out, or take ’em with you.
– James Buchanan Duke, US Tobacco Trust, 1889
*
Which brings us back to the perfidious and obsequious role played by our Mimic Men, so-called artists & glitterati & economists who are paid to ignore, and worse, muddle up such matters… As we have noted before, what the US President is saying is neither new nor original. Recall, and it is important to recall if we wish to comprehend:
The US government made 371 treaties with the original people of their ‘America’,
1776-1871. As one of their leaders, called ‘Red Cloud’ in English, recorded:
‘They made many promises to us, but they only kept one:
They promised to take our land and they took it.
*
As noted, the celebrated literati, the economists, the media (let’s not call them ‘our’ literati, ‘our’ media) simply refuse, or are paid to refuse, to listen. The idea that the USA under Trump will stop interfering in the rest of the world is pure delusion… regardless of their concerns for further genderization, they still want to turn both women and men into their ‘bitches’?
This week also saw pompous Anglomanic claims about ‘digital privacy’ & ‘freedom’, about control over the ‘data’ machinery, whose machines we are not allowed to make… There has also been continued hype about so-called ‘artificial’ intelligence (AI), which turns out to be not very artificial at all… Machines cannot create value; only humans, and working humans in particular, can do that. All AI, especially in English, is still colonized & biased, just the newest high-tech mimic men… As a Russian analyst noted, how even with China’s new open-source DeepSeek, which has popped their pompous balloons and shaken their stockmarkets:
‘…bias comes from being trained on liberal western media. All you get are
summaries of what all the Anglo-American media have been writing. This is the same
for ChatGPT & comparable western LLMs [Large Language Models]. As future models
get trained on voice & video they will be biased further, unless the Chinese & Russians
refrain from training on more English content and avoid the biases in that content.
Russians & Chinese would be wrong to train on data from the Anglo-Saxon world.’
Namal Rajapaksa and an SLPP delegation met US ambassador Julie Chung they previously despised openly. Although they stated that USAID was discussed, it is common knowledge that USAID is handled by a separate office of the US government with a separate office in Sri Lanka. Julie Chung is not associated with USAID projects in Sri Lanka!
Instead, the SLPP delegation discussed US citizenship issues of some of their party members who lost it and have been unsuccessful in regaining it. They also highlighted corruption investigations carried out by the police which they alleged were a human rights violation.
Chung promised to look into the US citizenship issue with the rest of the US State Department but would not comment on ongoing anti-corruption investigations stating that they were internal affairs of Sri Lanka and reaffirmed US government commitment to good governance and reduced corruption.
USAID has provided $2 billion since 1956 to Sri Lanka. Most of it went to non-development related aid, post-tsunami and other wheat purchase subsidies from US suppliers and for political purposes. Only an insignificant amount of USAID was provided to development related initiatives.
Sri Lanka’s vision for the Indian Ocean is one of shared destiny—where nations rise above rivalry to protect freedom of navigation and foster stable and sustainable prosperity based on cooperation, and find peaceful solutions to all issues, says Foreign Minister Vijitha Herath.
He made these remarks on Sunday (16) while addressing the first plenary session of the eighth Indian Ocean Conference (IOC), which is being held in Muscat, Oman.
During his speech, the minister also mentioned that the Colombo Port explores new horizons in maritime partnership and also emphasized that Sri Lanka is committed to strengthening maritime connectivity through port development, logistics, and maritime services, enhancing its position as a key hub in the Indian Ocean.
Developed in partnership with key regional partners, today, the Port of Colombo which is strategically placed in close proximity to the world’s busiest shipping routes, is a hub that services and connects the Far East with Europe, Africa, and the eastern coasts of the American continents.”
Rated as one of the best-performing ports in the world today, it is expected to reach greater heights with the state-of-the-art Colombo West International Terminal that is expected to become operational early this year, he said.
Sri Lanka’s Foreign Minister further emphasized that the country is also committed to the BBNJ Agreement on conserving marine biodiversity beyond national jurisdiction.
He continued, Given the Indian Ocean Region’s strategic and ecological significance, this treaty ensures equitable access to marine resources while strengthening regional cooperation on sustainable ocean governance.
Minister Vijitha Herath’s full speech:
It is a great pleasure for me to be here today in this beautiful city of Muscat – a city which has deep and ancient roots that connect my country and Oman.
At the outset, I want to express my sincere gratitude to the Government of Oman, the India Foundation, and all the other partners who have worked hard to organize this important Conference.
The Indian Ocean Conference which began in Singapore in 2016, has voyaged through Sri Lanka, Vietnam, Maldives, UAE, Bangladesh, and Australia, and now reached Oman.
I commend the India Foundation for this visionary and critical initiative that was launched in 2016, and for steering it with exceptional commitment through the years. In partnership with governments and a range of stakeholders, the India Foundation has created a platform for all stakeholders to gather regularly to engage in a dynamic exchange of ideas and collaborative action, reinforcing our shared commitment to the prosperity of the Indian Ocean Region. By fostering such visionary dialogue, the India Foundation not only strengthens regional cooperation but also ignites innovative pathways for sustainable growth, security, and resilience across the Indian Ocean Region.
Excellencies,
It is the Indian Ocean that first brought Oman and Sri Lanka together centuries ago. In ancient times, traders from Oman sailed to my country which was then known in this part of the world as Serendib. Our two countries were both active hubs for trade along the ancient Silk Route. This laid a firm a foundation for our bilateral relations that exist today, encompassing trade, investment, cultural exchange and people-to-people connections. The cultural impact of this ancient connection is such that a particular sweet derived from Omani Halva that Sri Lankans call Muscat” is a favourite among many in my country even today.
Excellencies,
The theme of this Plenary – Voyage of New Horizons of Maritime Partnership” – is of particular significance to us in Sri Lanka. To our minds, the Port of Colombo is an excellent manifestation of new horizons in maritime partnerships. Developed in partnership with key regional partners, today, the Port of Colombo which is strategically placed in close proximity to the world’s busiest shipping routes, is a hub that services and connects the Far East with Europe, Africa, and the eastern coasts of the American continents. Rated as one of the best-performing ports in the world today, it is expected to reach greater heights with the state of the art Colombo West International Terminal that is expected to become operational early this year.
Excellencies,
Our region’s prosperity and the world’s future prosperity lies in successful partnerships of this nature, and Sri Lanka remains committed to strengthening maritime connectivity through port development, logistics, and maritime services, enhancing its position as a key hub in the Indian Ocean.
Distinguished Delegates,
Oceans serve as the lifelines of international trade, carrying over 80% of global trade volume and underpinning economic interdependence. Yet, the maritime domain extends far beyond commerce—it is a critical nexus for environmental sustainability, cultural exchange, and geopolitical stability. In this dynamic landscape, freedom of navigation stands as a cornerstone of international law, ensuring the unimpeded, secure movement of vessels across global waters. Upholding this principle is not just a legal duty but a strategic necessity—one that preserves stability, strengthens economic resilience, and reinforces the rules-based maritime order essential for sustainable global prosperity.
However, the global maritime landscape is fraught with challenges some of which affect the Indian Ocean as well. This includes, among others, maritime crimes and territorial disputes, rising sea levels, ocean acidification, and extreme weather and marine pollution. All these challenges urge collaboration and partnership to find solutions. For example, tackling marine pollution requires better waste management and recycling. Similarly, rising sea levels and climate related issues require better climate data, resilience, and adaptation measures. As a key shipping route, the Indian Ocean traffic must explore adopting cleaner fuels and cut emissions to balance growth with conservation.
All these issues necessitate a collective approach rooted in mutual respect, cooperation, and adherence to international norms.
Sri Lanka’s vision for the Indian Ocean is one of shared destiny—where nations rise above rivalry to protect freedom of navigation and foster stable and sustainable prosperity based on cooperation, and find peaceful solutions to all issues.
The economic benefits of maritime partnerships within the Indian Ocean Region are vast, yet their full potential remains underutilized. From sustainable fisheries and tourism to maritime trade and energy resources, the ocean presents significant opportunities for growth and development. Realizing these benefits demands collaborative efforts to foster sustainable practices, protect marine ecosystems, and ensure the equitable distribution of resources.
Excellencies,
Regional security is intrinsically linked to the stability of the Indian Ocean. It is essential that we strengthen regional security architectures, enhance maritime domain awareness, and promote joint exercises and capacity-building initiatives. By doing so, we can create a resilient maritime environment that deters threats and fosters peace.
The complexity of maritime challenges necessitates a collective response. Networking between countries and agencies is essential to build trust, share best practices, and coordinate responses to common threats. Enhanced information sharing and communication channels can significantly improve our ability to detect, deter, and respond to maritime threats.
Excellencies,
As a strategically located island nation, and developing Indian Ocean littoral state, Sri Lanka seeks to harness the ocean’s economic potential while benefiting from Asia’s rising prosperity.
We are committed to playing a proactive role in regional maritime affairs, advocating for peaceful coexistence and mutual respect among Indian Ocean nations.
We will engage with all stakeholders within and beyond the Indian Ocean Region on initiatives that promote peace, security, and stability in the Indian Ocean Region.
We recognize the importance of networking between countries and agencies to address common challenges and seize opportunities. Enhanced information sharing and cooperative mechanisms are crucial for effective maritime governance. Therefore, as the current Chair of the Indian Ocean Rim Association (IORA) we reiterate the significance of fostering partnerships with regional and international stakeholders, and aim to contribute to collective efforts in ensuring maritime security, environmental sustainability, and economic prosperity.
Excellencies,
Sri Lanka is committed to the BBNJ Agreement on conserving marine biodiversity beyond national jurisdiction. Given the Indian Ocean Region’s strategic and ecological significance, this treaty ensures equitable access to marine resources while strengthening regional cooperation on sustainable ocean governance. Sri Lanka looks forward to leveraging this framework to enhance capacity-building, research, and technology transfer, reinforcing its commitment to protecting the high seas for future generations.
By leveraging technology and intelligence-sharing, we can strengthen our collective response to regional challenges. South-South Cooperation offers a pathway to enhance trade, infrastructure, and shared development, fostering economic growth through the exchange of technology, knowledge, and best practices. Such collaboration may be strengthened through existing regional frameworks like IORA, IONS, BIMSTEC, and the IOC, ensuring a unified and strategic approach to regional progress.
Distinguished Delegates,
In conclusion, I want to reiterate that Sri Lanka stands ready to collaborate with all stakeholders in working towards realising the vision of a secure, stable, sustainable, and prosperous Indian Ocean Region for the benefit of all.”
The Sri Lanka Army has directed all personnel below the rank of Major to hand over their passports to their respective regiments, according to the Army Spokesman.
Army Spokesperson Brigadier Waruna Gamage further revealed that this step has been taken in connection with an administrative matter.
However, he also mentioned that passports can be reacquired for personal purposes by informing the relevant departments.
Developers urge presidential action to address project delays
A consortium of 43 Renewable Energy (RE) developers, collectively representing over $ 3.5 billion in Foreign Direct Investment (FDI), has called for the intervention of President Anura Kumara Dissanayake to address significant delays in implementing RE projects in Sri Lanka.
In a letter written on Tuesday (11), the developers, who were provisionally approved under the 2021 Expression of Interest (EOI) process, have expressed concerns over critical process delays and the prolonged implementation timeline.
The consortium includes a mix of prominent Sri Lankan companies such as Hayleys, Asia Power, Senok, Akbar Brothers, and international investors like United Solar Electrical Ltd., Envision Energy, and PowerChina.
The group has appealed to the President, urging action in accordance with the provisions of the Sri Lanka Electricity Act and the Sri Lanka Sustainable Energy Authority (SLSEA) Act, to accelerate project development.
In 2021, the State Ministry of Solar, Wind, and Hydro Power Generation Projects Development, alongside the SLSEA and the Ceylon Electricity Board (CEB), invited proposals for renewable energy projects greater than 50 MW.
Out of the initial 533 applicants, 136 projects were shortlisted and 47 developers were selected, with 43 developers receiving provisional approval by February 2024.
These developers have noted that they have made substantial investments in the country’s RE sector, aiming to support Sri Lanka’s energy security, economic growth, and climate change goals.
However, the developers have emphasised that delays in the process are hindering their ability to deliver on their commitments, which include clean, affordable, and sustainable energy solutions for the country.
With significant international backing, the developers are seeking the Government’s immediate attention to ensure the timely implementation of these crucial projects, which are aligned with the nation’s long-term energy strategy.
The developers have further highlighted that these renewable energy projects would not only help reduce Sri Lanka’s environmental footprint but also contribute to the country’s socioeconomic development.
Ministry of Energy Secretary Prof. Udayanga Hemapala stated that the ministry was currently working on the EOI projects and anticipated a positive response.
1,200 doctors including 125 consultants left SL in ’23
5,000 medical officers awaiting opportunities to migrate
Non-Salaried Scheme offers airfare, allowance, insurance, book funds
Full-Salaried Scheme provides full salary from institution with study leave
Part-Salaried Scheme covers partial salary with ministry paying the balance
The Health Ministry is planning to review the legal obligations of medical specialist trainees who travel abroad for compulsory Government-sponsored foreign training but fail to return to Sri Lanka upon completion, The Sunday Morning learns.
This decision comes in response to a growing number of medical officers who, after receiving State-funded training, have chosen to remain overseas without informing the Ministry of Health (MOH) or repaying the legally bonded funds spent on their training.
The ministry aims to tighten enforcement and ensure accountability for those who benefit from public funding without fulfilling their obligations to the country.
According to the Postgraduate Institute of Medicine (PGIM) of the University of Colombo, upon successful completion of the MD examination, postgraduate trainees must complete a mandatory overseas training period at a recognised institution to qualify for Board Certification.
The PGIM serves as the national apex body responsible for postgraduate medical education and the Board Certification of medical specialists in Sri Lanka.
The minimum duration of this training is stipulated in the relevant prospectus, and it is the trainee’s responsibility to secure the necessary leave and funding from their employer if required.
According to the PGIM, foreign institutions offer three categories of training schemes for postgraduate trainees.
The Non-Salaried Training Scheme, funded by the MOH and PGIM, provides financial assistance, including a return air ticket (economy class), a personal maintenance allowance (as per the official circular), reimbursement for General Medical Council registration fees (if required), healthcare/medical indemnity insurance, visa fees, embarkation and arrival fees, and a $ 1,000 book allowance, which can be used for purchasing books, laptops, or related materials.
The PGIM verifies these training offers from foreign institutions before recommending study leave and scholarships to the ministry.
The Full-Salaried Training Scheme is fully funded by the foreign institution, covering the trainee’s salary. In this case, the MOH or PGIM does not provide any additional living allowances or benefits, and the PGIM will only recommend study leave to the MOH.
The Part-Salaried Training Scheme is partially funded by the foreign institution, while the MOH or PGIM will only cover the balance of the salary or the full monthly allowance, whichever is lower. No additional benefits are provided under this scheme.
As with the other schemes, the PGIM will verify the training offer before recommending study leave and scholarships to the MOH.
As reliably learnt by The Sunday Morning, the special training is awarded only for medical officers considering the country’s requirement of consultant medical officers.
However, as highlighted by the National Audit Office (NAO), as of June 2023, the ministry was authorised to employ 2,837 specialists across 58 medical fields, but only 2,740 specialists were in service, leaving a shortfall of 97 specialists.
This shortage affected 50 specialist fields, with 66 vacant posts in eight medical specialities. Additionally, 35 medical specialities were underfilled by 972 specialists, while 12 specialist fields had an excess of 113 specialists.
Another major concern was the appointment of 141 specialists in non-approved fields, raising questions about irregular hiring practices.
In 2023, approximately 1,200 doctors, including 125 consultants, had left the country for better opportunities abroad. From January to August of that year, 477 doctors including 125 consultants had migrated.
The Government Medical Officers’ Association (GMOA) previously stated that 5,000 additional medical officers were awaiting opportunities to leave.
However, speaking to The Sunday Morning, Health Trade Union Alliance (HTUA) representative Ravi Kumudesh stated that medical officers should not exploit opportunities that were available solely to them, when no other professionals in the health sector were awarded such privileges.
The Health Ministry bears the cost of education for all consultants from the beginning to the end. The ministry pays all costs for medical postgraduate trainees who go abroad. But after enjoying the benefits, they become selfish and remain there without even returning the legally bonded funds,” he stressed.
Kumudesh said that while medical officers should have the freedom to choose their paths, they must nevertheless fulfil their legal obligations as consultants who had benefited from taxpayer-funded education.
A number of doctors stay abroad without even informing the ministry. This is mainly due to management issues within the Health Ministry. The ministry should revisit existing legal mechanisms and there should also be an exit path for medical officers,” he added.
He further emphasised that not all medical postgraduates needed to go abroad for training as Sri Lanka had sufficient infrastructure to provide the necessary training, provided the Health Ministry managed it properly.
When contacted, Ministry of Health Secretary Dr. Anil Jasinghe stated that the ministry would revisit the existing legal obligations to prevent the country from losing the required consultants in the future.
In response to a question about whether Sri Lanka had the necessary infrastructure, Dr. Jasinghe said that there were no institutions in the country currently capable of providing the training that medical postgraduates received abroad.
The first year of foreign training for medical postgraduates is sponsored by the Government. However, it will not be sponsored if trainees wish to continue for another year. They should sign a bond with the ministry, assuring their return to Sri Lanka,” he said.
Speaker Jagath Wickramaratne informed Parliament on Friday (14) that he intended to take necessary action regarding requests made by MPs concerning allegations over USAID funding in Sri Lanka.
He made this statement in response to a question raised by Opposition MP Dayasiri Jayasekara, who sought a clarification on the matter.
Jayasekara noted that SLPP MP Namal Rajapaksa had sent a letter to the Speaker calling for the appointment of a Parliamentary Select Committee (PSC) to investigate reports about unethical USAID funding in the country. He questioned whether such a committee would be formed and the matter formally examined.
In response, Speaker Wickramaratne confirmed that he was planning to take appropriate action on the issue.
The Minister of Education, Higher Education, and Vocational Education, Prime Minister Dr. Harini Amarasuriya, has emphasized the necessity of providing a high-quality education to every child in Sri Lanka.
She made this statement while participating in an inspection tour of Jaffna Hindu College today (15).
During the visit, the Prime Minister engaged in a cordial discussion with students and teachers and toured the school’s museum, which showcases the institution’s rich Hindu cultural heritage.
A report outlining the school’s achievements and activities was also presented to the Prime Minister, according to the Prime Minister’s Media Division.
The Prime Minister further stated:
Jaffna Hindu College is one of Sri Lanka’s most prominent schools, with a long-standing history. The report detailing the school’s achievements is highly commendable. The transparency demonstrated in the school’s financial management serves as an exemplary model for other institutions. As a government, we prioritize education and are committed to introducing transformational reforms in the sector.
As the Principal highlighted, the prevalence of tuition classes has significantly increased. We acknowledge that the tuition industry has flourished due to shortcomings in the education system. To address this, we must ensure that schools provide an exceptional standard of education, reducing the reliance on tuition. Our objective is to offer a high-quality education not only to students of Jaffna Hindu College but to every child in Sri Lanka.
We have held discussions with education officials in the Northern Province regarding the implementation of educational reforms. Our responsibility is to ensure that education fosters respectful, ethical, and capable leadership for the betterment of society,” she said.
The event was attended by Minister Ramalingam Chandrasekar, Secretary of the Ministry of Education, Higher Education, and Vocational Education Nalaka Kaluwewa, the Principal of Jaffna Hindu College, members of the teaching staff, and students.
More than 30,000 suspects have been arrested in connection with the anti-drug and crime prevention operations conducted by the police across the island, according to Police Media Spokesperson SSP Buddhika Manatunga.
Addressing a press briefing today (15), SSP Manatunga stated that these operations were launched on January 12 and have been implemented across all police stations in the country.
As part of these efforts, a total of 920 individuals involved in criminal activities, 14,000 individuals with open warrants, and 16,000 individuals arrested for drug-related offenses have been taken into custody. In addition, a total of 11,757 drunk drivers have been apprehended.
The operations also led to the seizure of 197 firearms, including automatic and locally-manufactured guns.
Regarding the anti-drug operations, he said that 14 kg of heroin, 20 kg of Hashish, 33 kg of ‘Ice’ (Crystal Methamphetamine), and 1,123 kilos of cannabis were seized by police during raids.
SSP Manatunga confirmed that these operations are ongoing, with authorities continuing their efforts to combat crime and drug trafficking.
In addition, the police spokesperson reported that 30 individuals have been arrested in connection with shooting incidents that occurred this year.
A total of 13 shooting incidents have been reported in 2025, seven of which were linked to organized crime.
As a result, nine individuals have died, and two others have been injured in these shootings, he added.
Inflation could possibly hover around 2 percentage points above inflation target
Headline inflation is forecast to converge to targeted 5% level over medium term, supported by implementation of appropriate policy measures
Economic growth is expected to continue its rebound over medium term, although at a moderate pace
Sri Lanka’s inflation is expected to increase sizeably” in the third quarter this year (3Q25), with the possibility of it hovering around 2 percentage points above the inflation target in mid-2026, the Central Bank of Sri Lanka (CBSL) said in its monetary policy report that was released yesterday. Nonetheless, headline inflation is forecast to converge to the targeted 5 percent level over the medium term, supported by the implementation of appropriate policy measures,” it said. The real gross domestic product (GDP) growth for 4Q24 is expected to be robust, sustaining the momentum in the first three quarters of 2024. The CBSL noted that economic growth is expected to continue its rebound over the medium term, although at a moderate pace. Eased monetary conditions are anticipated to spur growth, whereas the expected continuation of fiscal consolidation efforts will likely have a contractionary effect over the medium term. The growth outlook remains subject to considerable uncertainty, due to the global geopolitical landscape. As per the latest near-term projections, the Colombo Consumer Price Index (CCPI)-based deflation year-on-year (YoY) is expected to be deeper than anticipated, on average, in 1Q25. This is primarily due to the substantial downward revision of electricity tariffs, effective January 18, 2025, along with the expectations of relatively subdued volatile food inflation. The CBSL said the statistical base effect would also contribute to lowering YoY inflation during 1Q25, as early 2024 saw price increases driven by the value added tax (VAT) adjustments and notable food inflation amid supply-side disruptions caused by the adverse weather conditions.
As per the latest projections, headline inflation is expected to increase and average nearly zero 2Q25. During 3Q25, inflation is forecast to increase further, approaching the inflation target of 5 percent,” the CBSL said. The sharp acceleration in headline inflation anticipated in 2Q25 and 3Q25 is primarily due to the substantial unfavourable base effect, a faster increase in world food inflation and the gradual development of demand pressures. In addition to these factors, the impact of global commodity price movements could further influence the inflationary trends. However, the surge in inflation is not expected to persist, as the base effect, one of the primary drivers of the estimated surge, is expected to subside in the subsequent quarters. The CBSL noted that the policy measures would support a gradual decline in inflation from 3Q26 onwards, stabilising around the targeted 5 percent level over the medium term.
Colombo, Feb 15 (Daily Mirror) – In the midst of controversy over USAID funding in Sri Lanka, the government has sought a report from the National NGO Secretariat in this regard, a Minister said yesterday.
Public Security Minister Ananda Wijepala told Daily Mirror yesterday he would fully deal with allegations over USAID funding in Sri Lanka, and for that, he sought a report from the NGO Secretariat which is operating under his Ministry.
The U.S. administration led by President Donald Trump announced a 90-day pause on foreign aid channelled through the U.S. Agency for International Development (USAID).
Even setting aside generous support for Ukraine over the past several years, the U.S. is spending roughly $40 billion in foreign aid annually. That is more than the GDP of multiple U.S. states and accounts for four out of every 10 dollars in global humanitarian aid. Americans deserve transparency and accountability for every dollar we spend, especially when it is spent abroad instead of at home, according to a statement from the US State Department.
Following the decision, the projects worth Rs.21 billion, operated by the organisations registered with the NGO Secretariat came to an end. However, there is no official report about money spent through the NGOs which operate outside the NGO Secretariat. There are 625 active NGOs registered with the Secretariat. Besides, there are numerous other NGOs registered under the Companies Act.
The U.S. government, through USAID, provided US $46 million to the FAO to address Sri Lanka’s fertilizer crisis in 2023. It also provided humanitarian assistance during the economic crisis.
However, there are now allegations that findings have also been channelled for controversial projects such as the promotion of LGBTQ rights and to chase out former President Gotabaya Rajapaksa from office. Local groups are up in arms against USAID over such allegations.
The organisation called ‘Coalition Against Partition of Sri Lanka’ is leading protests.
ජාත්යන්තර මූල්ය අරමුදලේ සමස්ත සාර්ව ආර්ථික ස්ථාවරකරණ වැඩසටහනේ පරාමිතීන් අනුව කටයුතු කිරීම රජයේ වගකීමක් බවත් ඒ අනුව මෙවර අයවැය රටට හොඳ අයවැයක් බවත් මහ බැංකු අධිපති නන්දලාල් වීරසිංහ මහතා පවසයි.
