Mr. Breuer: Thank you, Randa. Good morning, all, thank you very much for being here and for your interest in Sri Lanka’s IMF-supported economic reform program.
I am pleased to announce that, on Friday February 28, the IMF Executive Board approved the third review under the 48-month Extended Fund Facility Arrangement with Sri Lanka. This provides the country with immediate access to about US$334 million to support its economic policies and reforms.
It brings the total IMF financial support dispersed so far to about $1.3 billion. The IMF continues to support Sri Lanka’s efforts to restore and maintain macroeconomic stability and debt sustainability while protecting the poor and vulnerable rebuilding external buffers. Safeguarding financial sector stability and enhancing growth oriented structural reforms, including by strengthening governance.
The IMF Executive Board’s approval to complete the third review recognizes the strong program performance. All quantitative targets for end December 2024 were met, except for the indicative target on social spending. Most structural benchmarks do by end January 2025 were either met or implemented with delay.
Turning to through the macroeconomic situation, it is encouraging to see that reforms in Sri Lanka are bearing fruit with the economic recovery gaining momentum, inflation remains slow.
Revenue collection is improving and reserves continue to accumulate. Economic growth averaged 4.3% since growth resumed in the third quarter of 2023. The recovery is expected to continue in two thousand 2025 now. Despite these positive developments, the economy is still vulnerable. It is critical to sustain the reform momentum to ensure macroeconomic stability and debt sustainability.
And to promote long term inclusive growth, there is no room for policy errors. Let me emphasize that sustained revenue mobilization is crucial to restoring fiscal sustainability.
And ensuring that the government can continue to provide essential services. Boosting tax compliance and refraining from tax exemptions are key to maintaining support for economic reforms.
Let me also emphasize that to ease economic hardship and ensure the poor and vulnerable can participate in Sri Lanka’s recovery, it is important to meet social spending targets and continue with reforms of the social safety net going forward. Social support needs to be well targeted towards the.
Most disadvantaged, so as to promote inclusive growth with limited fiscal space. Restoring cost recovery, electricity pricing without delay is needed to contain fiscal risks from state owned enterprises. A smoother execution of capital spending within the fiscal envelope would foster medium term growth.
The recent successful completion of the bond exchange is a major milestone towards restoring debt sustainability, timely finalization of bilateral agreements with creditors in the official creditor committee, and with remaining creditors is a priority now. Regarding monetary policy, I would like to highlight that it should prioritize maintaining price. Stability supported by sustained commitment to prohibit monetary financing and.
To safeguard central bank independence. Continued exchange rate, flexibility and gradually phasing out the balance of payments measures remain critical to rebuild external buffers and facilitate rebalancing.
As for the financial sector, resolving non performing loans, strengthening governance and oversight of state owned banks and improving the insolvency and resolution frameworks are important priorities to revive credit growth and support the economic recovery.
Finally, prolonged structural challenges need to be addressed to unlock Sri Lanka’s long term potential, including steadfast implementation of governance reforms. I would like to thank the authorities for their commitment and excellent collaboration.
Let me also take this opportunity to announce that as part of a standard staff rotation process, I will soon be transitioning from the role of mischief for Sri Lanka. And I will be handing over to the next mission Chief Evan Papageorgiou, during the next mission. It has been an honor to accompany Sri Lanka on his journey out of this.
Severe crisis for nearly three years. While there are more challenges ahead, the IMF team will remain a steadfast partner for Sri Lanka and its people on the road to a more sustainable and inclusive recovery. I will be moving to another assignment soon and wish the people of Sri Lanka continued success with the economic recovery. With this, let me hand it back to Rhonda. Thank you.
Hungary’s High-Stakes Gamble: Breaking from the EU for BRICS? Is Hungary setting the stage for an unprecedented shift in global alliances? As tensions rise within the European Union, Budapest appears to be charting its own course—one that veers away from Brussels and toward the BRICS economic bloc. This strategic pivot raises urgent questions: Is Hungary risking its place in the EU to forge stronger ties with Russia, China, and other BRICS nations? What’s driving this recalibration, and how could it shake the foundations of European unity? In this video, we dissect Hungary’s growing divergence from EU policies—particularly its defiance of Brussels’ sanctions and its deepening reliance on Russian energy. From the controversial Sovereignty Protection Law to expanding economic partnerships with Moscow and Beijing, we’ll break down the key decisions fueling this geopolitical realignment. With expert analysis, compelling case studies, and hard-hitting statistics, we reveal how Hungary’s choices could trigger lasting consequences for Europe’s economic stability, security, and global influence. As the balance of power shifts worldwide, could Hungary’s defiance embolden other EU nations to reconsider their positions? What would a fracture in the European bloc mean for global trade and diplomacy? Buckle up for an eye-opening deep dive into a nation at a crossroads—where the stakes couldn’t be higher. Join the conversation: Do you think Hungary’s move is a bold assertion of sovereignty or a dangerous gamble? Let us know in the comments!
The Pathfinder Foundation, in collaboration with the Heritage Foundation (USA), hosted a joint briefing session titled Prospects for US-Sri Lanka Relations: Impact of the Second Trump Administration.” The event took place as a webinar, attracting over 100 pre-registered attendees from the government, academia, civil society, think tanks, and the development and corporate sectors, among others.
Interaction between the two foundations dates back a decade, and they have come together once again to hold this discussion on a topic of much interest to Sri Lanka and the Indian Ocean region. The Pathfinder Foundation, established in 2008 by Milinda Moragoda, is an independent, non-partisan research and advocacy think-tank. Today, the Foundation remains at the forefront of policy reform, playing a catalytic role as an advocate for economic, social and political development and strategic and security issues that affect Sri Lanka and the South Asian region. The Heritage Foundation is an American conservative think tank based in Washington, D.C. Founded in 1973, it played a leading role in the conservative movement during the 1980s, during the presidency of Ronald Reagan. Heritage’s world-renowned experts—deeply experienced in business, government, the military, nonprofits, academia, and communications—spend time developing innovative solutions to the issues America faces. They also engage with the international community to promote freedom, peace, and trade that benefits the US and the world.
Speaking at the event, several experts from the Heritage Foundation expressed their views on the Trump Administration’s policies toward South Asia. Diana Roth, Director of the Center for Energy, Climate, and Environment, the Herbert and Joyce Morgan Fellow in Energy and Environmental Policy at The Heritage Foundation, spoke on Energy Policy. She has also held senior roles in senior roles in the White House under Presidents Reagan, George H.W. Bush, and George W. Bush. She presented a case against renewables and justified the US’s inclination towards oil and gas instead, which is available in abundance in the US, inexpensive, and generates more jobs within the country.
Mike Gonzalez, who concentrates on critical race theory, identity politics, diversity, multiculturalism, assimilation, nationalism, and foreign policy overall and worked in President George W. Bush’s administration serving in the State Department’s European Bureau, expressed his views on US Politics. He stressed that the new administration intends to change the very nature of government, which is currently in disarray with many cultural, racial, transparency and bureaucratic issues at the forefront.
US Trade and Economic Policy was the area of focus for Eric Hontz, who leads Accountable Investment at the Center for International Private Enterprise (CIPE). He emphasized the need to restructure or rebuild new institutions in a free-market-driven world where all actors did not always follow the rules. The new administration is keen to work with Chambers and associations towards what he called a ‘regulatory guillotine.” Another important aspect would be the blending of economic policy and national security policy. As for Sri Lanka, he mentioned opportunities to work with the US in biotech for agriculture to reduce crop failure. The trade deficit, too, is an area that should be addressed, he opined.
The crucial topic of US’s South Asia Policy was addressed by Jeff Smith, the Director of The Heritage Foundation’s Asian Studies Center and formerly served as the Director of Asian Security Programs at the American Foreign Policy Council. He briefly examined PM Modi’s recent visit to the States and the new US administration’s strong commitment to the QUAD, which is crucial for the South Asian region since there is an Indian Ocean component to the QUAD. Fairness and reciprocal treatment in trade, opportunities for investment in the US, and the establishment of profitable and free markets in the world were also highlighted.
The final presentation on US-China Policy was done by Steve Yates, a Senior Research Fellow for China and National Security at the Heritage’s Asian Studies Center. He also served in the White House as Deputy Assistant to Vice President Dick Cheney for National Security Affairs from 2001 through 2005. He stressed that the new administration had prepared itself in detail to set the stage for a significant power shift and reset the US order with more capabilities. He noted that Trump 2.0 is not about ‘isolationism’ but ‘internationalism’.
Following the thought-provoking presentations by the US scholars, comments on the subjects discussed were made by Prof. Rohan Samarajiva, Founding Chair and CEO of LIRNEasia, Amb. (Retd.) Ravinatha Aryasinha, Executive Director of Lakshman Kadirgamar Institute, Dr. Dayaratna Silva, Executive Director of Pathfinder Foundation, and Admiral (Prof.) Jayanath Colombage, Distinguished Fellow of Pathfinder Foundation and former Foreign Secretary.
The Sri Lankan commentators representing the Pathfinder Foundation admitted that profound changes are occurring in the US and its relationship with allies in Europe and elsewhere. On trade, it was highlighted that Sri Lanka’s experience is similar to the US, while it has a favourable trade balance with the US, the country is also facing adverse trade balances with several other countries. Several opportunities for considerable US investment in energy and port development have failed due to circumstances beyond its control. While Sri Lanka enjoys a favourable trade balance in real terms, that figure is minuscule compared to the adverse trade balances the US has with many countries. However, they agreed that there are ways to address this issue. Concerning China’s influence in the region, it was pointed out that the infrastructure development needs of Asia require an app. 1.7 trillion US Dollars per annum, and apart from China, which had invested hundreds of billions to promote its Belt and Road Initiative, only Japan has proposed an investment programme of 70 billion dollars.
The event ended with a Q&A session and final remarks by James Carafano, Senior Counsellor of the Heritage Foundation, and Bernard Goonetilleke, Chairman of Pathfinder Foundation.
COLOMBO (Reuters) -Sri Lanka should avoid tax exemptions and focus on passing a national budget that is in line with parameters set by the International Monetary Fund to continue with a $2.9 billion program from the international lender, an IMF official said on Tuesday.
Sri Lanka mounted a remarkable” recovery from a deep financial crisis triggered by a record shortfall of dollars three years ago, the global lender said after approving a fourth tranche of $334 million under a Extended Fund Facility (EFF) program.
However, the South Asian island nation must now boost tax compliance, improve targeting of social welfare, and smoothen capital spending to support better management of public finances, Peter Breuer, IMF’s senior mission chief for Sri Lanka told reporters in an online briefing.
The IMF also backed restoring cost-recovery electricity pricing to bolster finances of the island nation’s power monopoly after Sri Lanka reduced tariffs by 20% in January.
At the next tariff setting it is important to ensure that tariffs are once again set to recover the cost,” Breuer said.
Another important issue for the next review will of course be that the budget that is finally passed this month is consistent with the parameters so this is something we will be watching very carefully.”
Additionally, he said it is crucial that Sri Lanka finalises bilateral agreements with official creditors including Japan, India and China after Colombo secured a preliminary agreement on a $10 billion debt rework last June.
The IMF finalised the third review after Sri Lanka’s new president Anura Kumara Dissanayake rolled out his first full-year budget last month, which included committing to a primary surplus target of 2.3% of GDP for 2025 set under the IMF program.
The IMF bailout secured in March 2023 helped stabilise financial and business conditions after Sri Lanka’s economy contracted by 7.3% at the depth of its financial crisis and by 2.3% in 2023.
Sri Lanka’s economy is projected to have grown by 4.5% last year with growth forecast at 3% in 2025, according to latest IMF data.
Buddhist monks held an interfaith prayer service for Pope Francis at Agrashravaka Temple of the Mahabodhi Buddhist community in Colombo on 25 February. The temple, considered one of the most sacred Buddhist sites in Sri Lanka, was visited by Pope Francis in 2015. During that visit, he became only the second pope in history to enter the temple, where he observed Buddhist monks chanting and praying. In a rare gesture of respect, the temple’s relic casket, typically displayed only once a year, was opened for the Pope to venerate.
At the service last week, the monks offered flowers and drinks to [the] Buddha, paused in meditation and recited passages from the scriptures of their faith. They asked for the Buddha’s guidance, for wisdom and compassiony,” explained the head of the Communications Office of the Episcopal Conference of Sri Lanka, Father Krishantha Fernando. In front of them was a picture of Pope Francis visiting this monastery.” (Agenzia Fides)
We were very touched by this spontaneous gesture of our Buddhist friends,” Father Fernando added. Pope Francis, with his attitude of dialogue and sincere fraternity toward all, left a legacy of empathy and closeness that we still feel here today and that is reflected in a fruitful way in our relations with Buddhists and other faith communities.” (Agenzia Fides)
With Pope Francis hospitalized and in critical condition with a severe respiratory infection, interfaith leaders worldwide have extended prayers and messages of support. The 88-year-old pontiff, who was admitted to Rome’s Gemelli Hospital on 14 February, is receiving treatment for pneumonia in both lungs and a complex polymicrobial respiratory infection.
While support has come from within the Catholic Church, religious leaders from Buddhist, Jewish, and Muslim communities have also expressed well-wishes. Messages have been shared by prominent figures across religious traditions, underscoring the pope’s longstanding commitment to interfaith dialogue.
Buddhist leaders in Sri Lanka and beyond have joined in prayers for the pontiff’s health. Similarly, Ecumenical Patriarch Bartholomew of Constantinople, the spiritual leader of Eastern Orthodox Christians, was among the first to send well wishes. In a handwritten letter, he expressed prayers for the Pope’s quick return to his important and sacred duties.” (The Catholic Herald)
Imam Yahya Sergio Yahe Pallavicini of Mecca, an advocate for interfaith dialogue, praised the pope as a champion of dialogue between Christians and Muslims,” while Noemi Di Segni, President of the Union of Italian Jewish Communities, acknowledged Pope Francis’s contributions to interfaith understanding, stating, Francis’s voice and actions are a key reference point for interfaith dialogue and all of humanity.” (The Catholic Herald)
Within the Catholic Church, leaders from both Latin and Eastern traditions have voiced their prayers and support. Cardinal Béchara Boutros Pierre Raï, Patriarch of Antioch of the Maronites in Lebanon, has offered public and private prayers for the Pope Francis’s recovery. Cardinal Pierbattista Pizzaballa, Latin Patriarch of Jerusalem, called on the faithful to unite as one family in faith” in an appeal for the pope’s well-being.
United Nations Secretary-General António Guterres also conveyed his support in a conversation with Vatican Secretary of State Cardinal Pietro Parolin on 21 February. Guterres stressed how important the Pope is, not only for the Church, but also for the whole world.” (The Catholic Herald)
Pope Francis was initially hospitalized for bronchitis, which later led to the diagnosis of a more severe respiratory infection involving bacterial, viral, and fungal elements. In recent days, his condition has worsened, requiring high-flow oxygen support due to a respiratory crisis. Doctors have reported additional complications, including anemia and a drop in blood platelet levels that necessitated transfusions.
Medical professionals are also monitoring mild kidney damage, although it has not yet reached a critical stage. However, concerns remain about the risk of sepsis due to the complexity of ope Francis’s infection and the extensive medications he is receiving.
Throughout his papacy, Pope Francis has prioritized engagement with other religious communities, reinforcing interfaith cooperation as a central theme of his leadership. His efforts have included historic meetings with leaders from various faiths, including visits to mosques, synagogues, and Buddhist temples.
As the Pope continues to receive treatment, religious leaders and others worldwide remain united in prayer and support, reflecting the broad support he has garnered across faith traditions and beyond.
AFP – Sri Lanka’s fragile economic recovery could be hampered by threatened trade union strikes over reduced benefits for government employees in this year’s budget, the International Monetary Fund warned on Tuesday.
Leftist President Anura Kumara Dissanayake’s maiden budget raised public sector salaries but also made deep cuts to longstanding perks in a continuing effort to repair the island nation’s tattered finances.
Sri Lanka’s main doctors’ union is considering a strike from Wednesday to protest against cuts to their allowances, while teachers are also considering stoppages.
IMF team leader Peter Breuer said the budget was the “last big push” for Sri Lanka’s austerity programme and said everyone who can “should make a sacrifice”.
“Sticking with the reforms is really the best way out for Sri Lanka to assure its sustainability,” Breuer told reporters.
“I think it’s important for everyone in Sri Lanka to recognise that,” he said. “This is the last budget where there is still a bit of an increase in revenues needed.”
Sri Lanka suffered an unprecedented economic crisis in 2022 that caused widespread shortages of food, fuel and other essentials.
The island nation secured a $2.9 billion bailout loan from the IMF in 2023, almost a year after defaulting on its $46 billion foreign debt.
Successive governments have since raised taxes and cut public spending to raise state revenue.
Breuer said the next year would be less painful, but the country must remain committed to economic reforms.
“This is the last big push,” he said. “Thereafter, it will be much easier going forward.”
The IMF released last week its fourth tranche of $334 million in its rescue package for Sri Lanka, commending the country for adhering to its economic reform pledges.
“Reforms in Sri Lanka are bearing fruit and the economic recovery has been remarkable,” IMF Deputy Managing Director Kenji Okamura said in a statement at the time.
“Inflation remains low, revenue collection is improving, and reserves continue to accumulate,” he said. “The recovery is expected to continue in 2025.”
The Kent and Dollar farms were located near Manal Aru. Kent and dollar farms are 11 minutes drive from Kurundi vihara and 8 minutes drive from Tannimuruppu kulam. The farms were bought on a 99-year lease from the state by a wealthy Tamil in 1965. In 1978 the owner donated the two farms for the resettlement of estate Tamils, who had fled the central hill country during the anti-Tamil riots of 1977.
Gandhyian Movement of Rajasunderam, and the Tamil Relief and Rehabilitation Organization led by Nityananda and Kandasamy were the two organizations that carried out the operation. SEDEC and Redd Barna helped. Redd Barna is a Norwegian NGO.
Gandhyam was founded by Dr. S. Rajasundaram and S. A. David. They had been doing refugee resettlement work from the beginning of the 1970s. They founded Gandhyam after the 1977 riots. It provided the refugee-settlers with agricultural advice, facilities and materials. Volunteer workers ran schools and day care centers for children. The U.S. agency CARE supplied packets of Triposha. NOVIB and Oxfam helped. [1]
Within two years the two farms became prosperous. The settlers cultivated minor crops and became self-supporting. By December 1978 the first sowing of black gram had yielded a bumper crop.
In December 1982 we visited the prosperous and popular Kent and the Dollar Farms where Indian Tamil refugee families were being rehabilitated, said Sabaratnam. They were cultivating minor crops they told us that they were happy, as their incomes were high. The entire area looked green and fresh. [2]
But there was a dark side to this. When Panditeratne got orders to dismantle the Maduru Oya settlement in September 1983, he planned to send the settlers to Vavuniya and Mullaitivu. He sent T.H. Karunatilleke and B.H. Hemapriya to visit Vavuniya, Mullaitivu and Kilinochchi and identify as many tanks as possible around which Sinhala settlements could be created. [3]
Karunatilleke and Hemapriya toured the area from 8th to -10th October 1983. They found some tanks which could be repaired at minimal cost which were close to the existing Sinhala settlements and close to existing services.
But they also found something else. They discovered that Dollar and Kent farms were to be used by the LTTE to launch a massive attack on Padaviya.
Karunatilleke and Hemapriya sent in a report to Panditeratne dated 12.10.1983. In their report they stated that while engaged in their own search, villagers from Padaviya who do chena cultivation in the area informed them of a new settlement created by Gandhiyam. The team passed through this settlement at 10 am. The people living there were from estates.
The settlement had 60-80 houses of semi-permanent nature, a permanent stores building and a small meeting hall. There were new tents of foreign make fixed close to the hall. There was a young Christian priest with a group of people in the hall. They were told that the priest had his base in Madhu and Kilinochchi. They saw the Eelam flag hoisted on the meeting hall. A number of houses carried the Eelam emblem on their front walls. On our way back by 6 pm we found that 20-30 new families had come, they were from estates. Within a few hours they had built 12 cadjan sheds.
Karunatilleke and Hemapriya were told that a group of young Tamils regularly came down to this village through Nedunkerni and directed the cultivation and the training of the youth. The settlers were kept under rigid supervision. They were paid a substantial living allowance by an unknown, well-organized movement.
Padaviya settlers said that in the evening and at night, they heard sounds of gun fire and other noises, for a set period of time. Youth brought in trucks and motor bikes also participated in these sessions. This was a regular feature on certain days of the week and seemed to be training session. Karunatilleke and Hemapriya stated that they strongly suspected that this was part of a subversive plan.
The settlement they were speaking about, was known as Dollar farm, reported Karunatilleke and Hemapriya. It had been given on special lease to a firm twenty years ago. It is on the southern border of Mullaitivu almost adjoining the Padaviya scheme.
Karunatilleke and Hemapriya saidthey were also informed that there was another place called Kent farm, located to the east or north east of Dollar farm. This was also on lease. Kent farm was one of the central training centers of the LTTE. They had not visited Kent farm. They advised that both leases be cancelled.
From 1982 Gandhiyam and other social service NGOs helping Tamils were under surveillance by the police, Arthur Herath, Assistant Superintendent of Police in Vavuniya had sent a series of reports to the Defense ministry through the Inspector General of Police urging action to evict the estate settlers. Arthur Herath was later killed by bomb under his table.
The reports were taken seriously by the Security Council. Lalith Athulathmudali was sent to report on this in early December 1982. He wanted the inspection to appear like a normal ministerial tour and organized the opening of a Sunday pola in Mankulam.
Island newspaper on 7th October 1983 said that over fifty stateless families, comprising nearly 250 men, women and children had been brought from the plantations and settled on 500 acres set aside by the Government for the settlement of landless villagers within the electorate under a World Bank project. This encroachment had started two years ago when the Gandhiyam Movement launched a large-scale encroachment in the jungle areas of Vavuniya and Mullaitivu and other areas off Vavuniya.
Gandhiyam was sealed in April 1983 and its leaders detained. The estate Tamils were evicted. They were herded into buses, taken to the hill country towns and dropped on the roads, said Sabaratnam, Thondaman was angry. He raised the matter in the cabinet.
The government said that the Kent and Dollar farms were on state land, given on lease, and the state was taking them back to set up open prisons, a new experiment where prisoners would be allowed to live with their families and do cultivation.
The two farms were taken over by the state by a special gazette notification and converted into open prisons. Four hundred and fifty prisoners and their families were settled in those farms. KEEPThey were mostly those convicted for minor offences like theft, brewing and selling of illicit liquor, intimidation and thuggery.
Settlers were under prison officers but were allowed to live with their wives and children. They thought they were free. Training in agriculture was given. Hemasiri Fernando, a farmer was in Anuradhapura prison serving a sentence for trespass, destruction of property and assault. He and his family were taken to Dollar Farm, where he was given a plot with chillie and banana cultivations. “We considered it a gift from heaven,” he said.
The scheme aroused much anger amongst the Tamils. They said Sinhalese farmers were settled in lands that were formerly populated by ethnic Tamils. They were given land, money to build homes and security provided by the Special Task Force
The military has settled Sinhalese ex-convicts in the very area that had been the home of Indian Tamils refugees for almost seven years, said Manogaran. They were given the farm plots, developed by the evicted Indian Tamils, with standing crops and well-kept dwellings, said Sabaratnam.[4]
Thondaman said Sinhala leaders are very short-sighted. They do not pay attention to the reactions of the Tamils to their actions. He told Sabaratnam, “They are going to pay heavily for this.”
The Sinhala settlers on Dollar and Kent farms were aware that the LTTE were planning to attack them. They could hear the gunfire. They pleaded with the authorities, please give us military training, give us arms and ammunition, to protect themselves otherwise we will all be dead very soon. The administration said that according to the Establishment Code, civilians cannot be armed or given training in defense positions. Settlers received no guns or training.
The settlers, releasing this, were getting desperate, they wrote to Dimbulagala Hamuduruwo. we did not ask to come here, they said, we came from Maduru Oya. The army burnt our houses at Maduru Oya. after that they gave us permits for Padaviya. We cannot live here under the present conditions. We are shivering in fear. The two villages adjoin ours were destroyed by bombs and arson. What appeared in the newspapers is all lies. The murdered children have been thrown into latrine pits other are buried in the jungle. 300 families ran away. Pease try to get us land in Polonnaruwa or Badulla district.
The attack on Dollar and Kent farms took place on 30 November 1984. It was planned by Prabhakaran, then in Chennai, and executed by Mahattaya. Prabhakaran admitted responsibility for the attack when an expatriate group raised the matter with him, said Sabaratnam.
About 50 LTTE cadres travelled in the night in two buses armed with rifles, machine guns and grenades. One of the buses sped to Dollar Farm and the other to Kent Farm. The attacks were timed to start at about the same time in the early hours of the morning.
At Dollar farm LTTE fighters shot and hacked the guards, the prisoners and the male members of the families. Some of the prisoners were thrust into a room in a building and blasted with explosives. Sixty-two Sinhalese including three jail-guards were killed. The second bus proceeded to the Kent Farm eight kilometers away and killed 20. The attackers withdrew before the police and the army arrived the next morning.
an eye witness account of the massacre at Dollar farm is given in the book by Malinga Guneratne. D.H. Somapala 28 yrs is one of the survivors of the attack on Dollar farm. He said ‘at about 5.30 am on the morning off 30 November 1984 about 100 terrorists, some dressed in army uniforms circled out entire farm from various sides and began firing at us and throwing bombs at some of the huts in which we were living. A few of us were able to escape by running into the jungle and I was one of those who survived, when inside the jungle I hid and tried to see what was happening.”
Within a few minutes the terrorists rounded up all the civilians who were unable to escape and herded them into one circle. They wielded their sub machine guns and ordered them all to lie down. While some of the terrorists held guns at the heads of the civilians and ordered them to lie down. others quickly began to tie their hands and legs of the civilians. Then they started jumping on the bodies and kicking them. Some urinated on these live bodies. They were thereafter turned face down, and placed next to each other. At a given signal they kept guns at the head of each and shot them through their heads and necks. When I saw them commence firing, I fled.
Malinga described what they saw when they went on relief after attack. the pitiful state of the Dollar and Jent refugees. They had nothing other than what they were wearing. Children were orphaned, wives had lost their husband and children. We got a firsthand account of the attack. they said after attacking us, they urinated on the dead bodies. The settlers were astounded by the venom and ferocity of the attack. The hatred the LTTE harbored against the Sinhalese could not have been more apparent, commented Gunaratne.
I went to see Thondaman in his ministry the next morning, recalled Sabaratnam. He smiled as I entered. “Have you heard the news?” he asked. He expressed his happiness about the attack.[5]A few days later Devanayagam, the other Tamil minister, expressed a similar reaction. In fact, every single Tamil in Sri Lanka and abroad was happy about the attack. In Tamil Nadu, there was a sense of elation. Some Tamil papers led with that story, continued Sabaratnam.
In my view, concluded Sabaratnam, the Kent and Dollar farm attack was a milestone in the Tamil freedom struggle. It denoted that in the Tamil psyche that a separate Tamil nation had been born. The Weli Oya Scheme made them to realize that the Sinhalese were out to deny them their homeland. the need to defend their homeland became a priority .The Tamil people were happy about the attack. The Sinhala people were angry, said Sabaratnam.( continued)
On 1 December, 1984 LTTE cadres, including women fighters, attacked two Sinhala Catholic fishing villages, Nayaru and Kokkilai, killing 59 fishermen. [1] Kokkilai lagoon is an estuarine lagoon on north-east Sri Lanka .The town of Kokkilai is located on a sand bar between the lagoon and the Indian Ocean. Nayaru is 15 kilometers north of Kokkilai.
[1] T Sabaratnam Manal Aru becomes Weli Oya https://sangam.org/articles/view2/633.html
A string of Sinhala fishermen’s settlements had been established along the coast from Trincomalee to Mullaitivu. Nayaru and Kokkilai are the northernmost of these settlements. They were occupied by fishing families from Negombo and Chilaw.
There had been two attacks on Kokkilai in 1978 and 1982 and some inhabitants had abandoned the village.[1] This attack was the third. LTTE arrived in a van at 8 pm. The Tamil driver had tooted the horn and flashed the lights as he approached the Sinhalese, to warn them of the impending massacre. He was later found shot. The militants jumped out and began throwing explosives and opening fire. Those not immediately killed ran to their boats to flee into the ocean.
Magilin Costa, who survived, had been returning home from her factory, at night, when she noticed a van tooting its horn and blinking its lights. She hid and watched. She recalled that there were men and women, in blue shorts and square necked shirts, they were young. They shouted filth in Tamil. They first threw a bomb than started firing. They fired at all the cadjan huts. They used at least two machine guns. After shooting the LTTE departed. When she returned home, she found that her two daughters had been bound by their long hair and shot dead at point-blank range.
The LTTE had gone on an orgy of destruction, said Malinga. The survivors of the massacre became refugees and relocated to refugee camps in Negombo, Duwa and Pitipana
This attack was followed by another LTTE attack, in 1985, this time on the army camp at Kokkilai. On the night of 13 February 1985 LTTE attacked the Sri Lanka army encampment at Kokkilai. That year, the army had established a small outpost at Kokkilai inside an abandoned school, with a young second lieutenant, Sarath Wijesinha officer commanding two platoons of soldiers. It was completely cut off from the base camp.
Over 100 LTTE fighters surrounded the Kokkilai Army Camp and attacked it with RPGs, mortars and grenades for over four hours. .[2]This was the first direct assault on a Sri Lanka military base by a Tamil militant group. It was also the first time they had used RPGs. After the clash ,14 bodies of militants were found outside the camp perimeter dressed in military type uniforms and with night vision glasses.
Ravi Jayewardene, Malinga Gunaratne, and others had visited Kokkilai after it has been attacked by LTTE They were shown the arms recovered from the LTTE. There were three rocket propelled guns. the rocket launcher had been taken away by the retreating LTTE. LTTE came with the very best assault rifles including the German Heckler and Koch gun. Night vision glasses, AK 47, M16 assault rifles were in the possession of every rebel killed.
The dead LTTE soldiers were all in battle fatigues (combat uniforms). Even the underwear was of camouflage material. They each had night vision glasses, AK 47 and M16 assault rifles. They carried supplies of food and water and each had a cyanide capsule and stock of medicines which included expensive Destroz type pep pill used by long distance runners. David Walker of the UK Special Air Force (SAS) who was with them told the unfazed Wijesinghe, this is an excellent battle by any standard. Congratulations.
The army camp at Kokkilai was commanded by Lieutenant Shantha Wijesinghe. The camp was just two platoons of soldiers inside a school. Camp was cut off from the rest of the army. Wijesinghe knew he had little strength, so he innovated. Wijesinghe cut trenches around the school, and placed his best snipers as sentries at strategic points outside the camp.
At about 2 am, on 15 February 1985, around 120 LTTE attacked with rocked propelled grenades. They shot down the search lights first. The army held its fire and thinking all were dead the LTTE came in. The army then fired, killing 25 LTTE and the LTTE leader ordered a retreat. Army had lost just two men. They repulsed the attack by 120 LTTE though less armed. The garrison held out and received reinforcements by morning.
This shows how bravely the war was fought in the initial stage with very poor weapons and little training, said Malinga Guneratne. Lieutenant Shantha Wijesinghe received a field promotion to captain, the first time in the army’s history. (continued)
I think that Elon Musk and his Department of Government Efficiency (DOGE) have been misinformed. I don’t disagree with their shutting down USAID, but I think it’s rather small fry. There are much, much bigger fish to fry if you want to really save U.S. government money that is being wasted in programs that are mischievously justified as aid to the poor people of the world.
Elon, hear me out: if you walk northwest from your headquarters at the Eisenhower Executive Building along Pennsylvania Avenue, you’ll come after one long block upon two ugly buildings squatting beside each other. One is the World Bank. The other is the International Monetary Fund (IMF). You can actually just walk in and demand to look at their books since they are extensions of the U.S. government. And you would have a very good reason to do so, since these are two of the most questionable and controversial institutions directly or indirectly funded with U.S. taxpayers’ money.
Let me start with the World Bank, which is located at 1818 H St NW. This institution has so-called development projects throughout the Global South, otherwise known as developing countries. This agency says that its mission is to end poverty in the developing world. To fulfill this goal, its lending has risen from nearly $55 billion in 2015 to $117.5 billion in 2024. Yet, despite this massive increase, the Bank admits that global poverty reduction has slowed to a near standstill, with 2020-2030 set to be a lost decade.” Some 3.5 billion people, or 44 percent of the globe, remain poor, after decades of massive World Bank lending. And a major part of the reason is that World Bank programs have created poverty instead of alleviating it.
Living in Luxury While Fighting Poverty”
To manage its operations, the Bank’s full-time staff rose from nearly 12,000 in 2015 to over 13,000 in 2023. These figures are just the tip of the iceberg. If one includes all employees—permanent, non-permanent, contractual, part-time—throughout the world, the Bank employs close to 41,000 people. The vast majority, 26,000, or 63 percent, work out of the World Bank headquarters in Washington, DC, and only 3,200 are located in Africa, where most people in extreme poverty live.
The Bank’s economists and top administrators are among the highest paid financial functionaries in the world, which explains the reason why the Bank is a major cause of the brain drain from developing countries: a great number of highly trained economists from developing countries prefer to work at the Bank instead of their home countries, with some going straight from Ivy League or British graduate schools to Washington, DC. Many within the Bank and the International Monetary Fund complain about the South Asian Mafia” that they claim controls employment opportunities for economists and higher-level staff in the two organizations.
The World Bank has come under fire for the billions it has spent supporting fossil-fuel projects throughout the Third World that have contributed to global warming and to mega-dam projects that have displaced millions. The Bank, along with the Fund, has also gained notoriety for imposing structural adjustment” programs guided by the radical principles of the Washington Consensus” that are designed to promote globalization but have, instead, increased poverty and deepened inequality. The reason World Bank projects and programs don’t work or create exactly the opposite of their intended goals is because they are based on questionable propositions built on little or no empirical evidence. An assessment made a few years ago by an all-star team of renowned economists led by Princeton’s Angus Deaton, a recipient of the Nobel Prize for Economics, was damning:
[The] panel had substantial criticisms of the way that the research was used to proselytize on behalf of Bank policy, often without taking a balanced view, and without expressing appropriate skepticism. Internal research that is favorable to Bank positions was given great prominence, and unfavorable research ignored. In these cases, we believe that there was a serious failure of checks and balances that should have separated advocacy and research. The panel endorses the right of the Bank to strongly defend and advocate its own policies. But when the Bank leadership selectively appeals to relatively new and untested research as hard evidence that thes preferred policies work, it lends unwarranted confidence to the Bank’s prescriptions. Placing fragile selected new research results on a pedestal invites later recrimination that undermines the credibility and usefulness of all Bank research.
The Bank’s refusal to acknowledge real-world refutations of its pro-globalization advocacy and its unbalanced, one-sided research led to justifiable rejection of its advice by the people who were suffering from the policies it was implementing, confessed Paul Collier, head of the Bank’s Research Development Department of the Bank from 1998 to 2003:
The profession has been unprofessional, fearful that any criticism would strengthen populism, so that little work has been done on the downsides of these different processes [of globalization]. Yet the downsides were apparent to ordinary citizens, and the effect of economists appearing to dismiss them has resulted in widespread refusal of people to listen to experts.” For my profession to re-establish credibility we must provide a more balanced analysis, in which the downsides are acknowledged and properly evaluated with a view to designing policy responses that address them. The profession may be better served by mea culpa than by further indignant defenses of globalization.
Despite the high rate of failure of its lending programs acknowledged in internal World Bank assessments, the World Bank administrative budget that supports the high salaries of its economists and other high-level staff just keeps growing. The World Bank (IBRD/IDA) administrative budget was approved at $3.5 billion for FY25, a sizable rise from the $3.1 billion authorized for FY 2024, with no convincing reason at all.
The IMF and the Art of Worsening Financial Crises
The International Monetary Fund, whose address is 700 19th St NW, is the World Bank’s sister agency. It has a full-time staff of 3,100, supported by a budget of $1.5 billion. The IMF’s economists are paid even higher than those at the World Bank, and they evoke more fear, hatred, and contempt than the Bank.
The IMF has an equally controversial history. It has a record of coming in to supposedly assist developing economies in crisis, only to make things worse. Its greatest debacle and scandal was its performance during the Asian Financial Crisis of 1997-98, when the so-called tiger economies of the East and Southeast Asia were destabilized by the massive inflows and outflows of foreign portfolio investment.
The Fund was heavily criticized on three counts. First, it had encouraged the governments of the region to eliminate capital controls, thus provoking uncontrolled capital flows. Second, it assembled multi-billion dollar rescue packages” that went to rescue not the people suffering from the crisis but to compensate the foreign financial speculators that had lost millions in dubious speculative ventures, thus encouraging moral hazard,” or irresponsible investing. Third, its measures to stabilize the damaged economies intensified the crisis, since instead of encouraging government spending to counteract the collapse of private sector, it told the governments to radically cut spending, leading to a procyclical” negative synergy that ended in deep recession.
In just a few weeks, one million people in Thailand and 22 million in Indonesia fell below the poverty line. The only country that contained the crisis was Malaysia, which refused to follow the Fund’s dictates and imposed capital and currency controls
So disastrous were the IMF’s interventions that George Schultz, President Ronald Reagan’s secretary of the Treasury, called for its abolition for encouraging moral hazard, and prominent economists like Jagdish Bhagwati and Jeffrey Sachs accused it of provoking global macroeconomic instability. Indeed, a rare conservative-liberal alliance in the U.S. Congress came within a hair’s breath of denying the IMF a $14.5 billion replenishment.
Eventually, the Fund was forced to admit that the thrust of fiscal policy…turned out to be substantially different…because the original assumptions for economic growth, capital flows, and exchange rates…were proved drastically wrong.” But things were never the same again. The IMF was so reviled for its performance that Asian governments developed IMF-phobia, swearing never again to ask the IMF for rescue even in the most dire circumstances. For instance, after paying off what Thailand owed the IMF, Prime Minister Thaksin Shinawatra declared the country liberated” from the Fund in 2004.
Instead of learning from its debacle during the Asian Financial Crisis, the IMF stumbled into another fiasco more than a decade later, during the Global Financial Crisis. It allowed itself to be hijacked by Germany, the European Commission, and the European Central Bank to provide billions of public money to rescue German financial institutions and investors that had engaged in an orgy of irresponsible lending to Greece to the tune of 25 billion euros. To get the so-called rescue funds, the Greek government, like the Asian governments previously, was forced to adopt severe austerity measures that drove unemployment up to 28 percent and condemned the Greek economy to permanent stagnation, only to turn the money it was ostensibly receiving over to the German banks.
Not surprisingly, so long as the IMF is there, the big international banks will assume that they will be bailed out for making irresponsible loans.
The U.S. and the Bretton Woods Twins: Fiction and Fact
There is a fiction that the IMF and World Bank are multilateral institutions that are owned by their many member governments. The reality is that the United States controls both institutions, with a 17.4 percent share of total quotas at the Fund and 15.8 per cent share of voting power at the Bank. These shares give the U.S. government a veto power over any policy change. But the truth is that U.S. power is not limited to its being able to veto policy decisions it does not like. No country would dare oppose a move by the United States to radically cut the administrative budgets (by, say, 75 percent initially) and the number of personnel in the two organizations (to 600 personnel each, as in the case of USAID) if it wanted to do so. All it needs to do to get its way is to threaten to withhold its contributions to the two organizations. I can guarantee that immediately the interest rate at which the Bank borrows in international capital markets would leap upward, paralyzing its lending operations.
The IMF and the World Bank are monuments to misguided economic thinking and policies that have brought much misery to the peoples of the Global South. They are institutions that no longer serve any purpose except to perpetuate and enlarge themselves. If Elon Musk and Donald Trump are really serious about radically downsizing bloated bureaucracies, they could not have better targets than the Bretton Woods twins.
Walden Bello, a columnist for Foreign Policy in Focus, is the author or co-author of 19 books, the latest of which are Capitalism’s Last Stand? (London: Zed, 2013) and State of Fragmentation: the Philippines in Transition (Quezon City: Focus on the Global South and FES, 2014).
Firstly I should start off by saying that “people are with many grievances”; but they are walking through the passages of political and media, popular propaganda. To my knowledge, these are all-time-related fake visuals.
For example on the 21st of February 2025, at Samanthurai during this paddy harvest season; hundreds of elephants are seen crossing through the carpeted roads to find food from these fields; as these elephants are starved without food and congested in an environment of dry landscapes.
As I have mentioned many times in many popular addresses, “elephants are a national Buddhist heritage and should be secured to a habitat of their own”.
These habitats could be cultivated by spreading Kithul seeds and other palms that attract their habitual diet.
On the other hand, Acteria plants could be grown as fences to separate elephants’ habitats from the paddy and other crop farming areas.
As I have mentioned many many times at many many popular community awareness programs.
Acteria fences on the other hand could completely, eradicate, the need for electrical fences; which are an absolutely harmful thing for the animals as well as humans in this Theravada Buddhist State.
As of the 2004 Tsunami, all the needed infrastructure to set up these fences and the fruitful habitats for the elephants could be materialised through camps organised through media companies such as Sirasa, Swaranawahini and Derana.
On the other hand, its total administration has to be under the complete guidance of a nation’s lady of prudence and international charisma, bearing the harmony of mother nature.
Finally our motherland needs the watchmanship of a Nations Lady, who is of the highest standards of International entrepreneurship, and interpersonal relations; who could glide through the waves of all season’s.
And that esteemed Lady of highest charisma to my knowledge is ,”Otara Gunawardene”.
I close by saying with confidence: ” that our nation “The only Thearavada Buddhist State” would be of its right track with her esteemed influence”.
The credibility of a government that claimed to be fighting corruption was at stake when individuals involved in financial misappropriation held Cabinet positions, Batticaloa District ITAK MP Shanakiyan Rasamanickam told the House yesterday.
Speaking during the committee-stage debate on expenditure heads of the Ministry of Energy in Budget 2025 proposals, Rasamanickam stated that an individual who had been interdicted over a financial fraud in the Fertilizer Corporation was now a member of the NPP Cabinet and sat in the front row of the government side.
The person in question had been appointed to the Fertilizer Corporation when Anura Kumara Dissanayake was Minister of Agriculture in the UPFA government under President Chandrika Kumaratunga.
Since I do not intend to vilify anyone, I refrain from naming the person concerned,” Rasamanickam said.
Meanwhile, earlier in the day, during the debate, NDF Badulla District MP Chamara Sampath Dassanayake lashed out at Energy Minister Eng. Kumara Jayakody, claiming that he had information about Jayakody’s dealings while working at the Fertilizer Corporation.
I have information about your transactions but I will not go into details,” Dassanayake told Minister Jayakody when the latter attempted to interrupt.
Deputy Speaker Rizvie Salih cautioned MP Sampath against making personal attacks.
In response, Sampath stated that he had not engaged in any personal attacks.
The Government Medical Officers’ Association (GMOA) yesterday (03) warned the government of a countrywide strike unless it restored holiday allowances to the previous level for doctors.
GMOA Secretary Dr. Prabath Sugathadasa emphasised that as the cuts imposed through Budget 2025 weren’t acceptable to the GMOA, the government should take immediate remedial measures and its failure to do so would drive the GMOA to resort to trade union action to win its demands.
Dr. Sugathadasa said that in case the government didn’t respond positively to their demand immediately a strike would be launched tomorrow (05).
The GMOA official said that if the government failed to resolve the issue at hand by 06 March, the government faced a serious challenge in maintaining the public health sector.
Colombo, March 03 (Daily Mirror) – A man was arrested this morning by Kadugannawa police for riding a motorcycle from Colombo to Kandy while naked.
Police said the 23-year-old man was arrested after a great effort by law enforcement.
Several police officers observed the man riding the motorcycle along the Kandy-Colombo road and attempted to apprehend him, but none were able to catch him.
The Kegalle and Mawanella police also pursued the man but were unsuccessful. After alerting the Kadugannawa and Peradeniya police, officers in Kadugannawa managed to stop the motorcycle using roadblocks.
The arrested man has been identified as a 23-year-old resident of Ahangama. He is set to be produced before court today, where authorities will seek permission to obtain a mental health evaluation.
Kadugannawa police are conducting further investigations under the direction of Senior Superintendent of Police for the Kandy Division, Anuruddha Bandaranaike.
The nominations for the 2025 Local Government Elections will be accepted from March 17, 2025, the Elections Commission announced.
The commission said that the relevant nominations will be accepted until 12 noon on March 20, 2025.
Accordingly, the notices regarding the acceptance of nominations for the election of Mayors, Deputy Mayors, Chairpersons, Deputy Chairpersons, and members for 336 local government institutions across the country have now been published in the respective local authorities.
The Election Commission said that these include 28 Municipal Councils, 36 Urban Councils and 272 Pradeshiya Sabhas. However, the Kalmunai Municipal Council, Dehiattakandiya Pradeshiya Sabha (Ampara District), Mannar Pradeshiya Sabha (Mannar District), Punakari Pradeshiya Sabha (Kilinochchi District), and Elpitiya Pradeshiya Sabha (Galle District) are excluded from this election.
Meanwhile, the commission said that security deposits from candidate will be accepted from March 3 to March 19, 2025, until 12.00 noon, excluding March 13, the Poya Day and weekends on March 8, 9, 15, and 16.
Discussions have been held at the Ministerial Consultative Committee on Transport, Highways, Ports and Civil Aviation, regarding Sri Lanka Transport Board (SLTB) bus drivers who operate services while bypassing schoolchildren and citizens with season tickets.
During the meeting, the Minister of Transport, Highways, Ports and Civil Aviation, Bimal Rathnayake, stated that any citizen could report such incidents by calling 1958. He further emphasized his awareness of the said issue and assured that stringent measures would be taken against such misconduct.
He also mentioned that SLTB drivers and conductors had been duly informed of the matter, the Parliamentary Communications Department said in a statement.
The Ministerial Consultative Committee on Transport, Highways, Ports met under the Chairmanship of the Minister Bimal Rathnayake at Parliament, where these issues were discussed.
The meeting was attended by the Hon. Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, the Hon. Deputy Minister of Transport and Highways, Dr. Prasanna Gunasena along with both government and opposition Members of Parliament, as well as officials from state institutions affiliated with the ministry, the statement added.
Furthermore, the Committee Chair expressed his concern regarding the lack of initiative from railway department officials in addressing the harm caused to elephants, despite the availability of technology. He pointed out with regret the incident where six elephants perished due to a train collision, calling it a deeply unfortunate occurrence.
He expressed disappointment over the railway department officials in failing to utilize the GPS technology to mitigate such incidents and expressed his dissatisfaction over their inaction, it noted.
Minister Bimal Ratnayake issued directives to the railway department officials to take all necessary measures to prevent such occurrences. In response, the officials stated that discussions were already underway and that immediate steps were being taken to address the issue. Additionally, an ad hoc Parliamentary Committee was established, comprising Members of Parliament, to formulate an efficient management system within the railway department.
Discussions also covered the issue of the container congestion at the port, with the Hon. Deputy Minister of Ports and Civil Aviation briefing Members of Parliament on the steps taken to address the matter, the statement mentioned.
Accordingly, to mitigate the delays caused by containers being held at the port, additional staff had been swiftly recruited. To alleviate congestion within the port, approximately two acres of land in Bloemendhal area had been allocated to customs for vehicle parking, the Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku stated.
He further highlighted that the Port Community System, which is a digital technology initiative, had been launched as a long-term and sustainable solution.
Additionally, the Annual Report of the Sri Lanka Ports Authority for the year 2023, along with the Annual Report of Jaya Container Terminals Limited for the year 2023, was reviewed and approved during the Ministerial Consultative Committee meeting held.
Moreover, a progress review was presented by the chairpersons of the three subcommittees appointed under the Ministerial Consultative Committee on Transport, Highways, Ports and Civil Aviation to seek legal and administrative solutions for issues related to transport, highways, ports, and civil aviation, according to the Parliamentary Communications Department.
Property in Sri Lanka’s Colombo had risen 7.7 per cent in the second half of 2024 from a year earlier, according to a Land Valuation Indicator. According to the report, industrial land had risen 3.9 per cent in the first six months compared to a year earlier. Residential land had risen 9.9 per cent, and commercial land had risen 9.4 per cent.
The highest increase was observed in the Residential LVI, followed by Commercial and Industrial LVIs. Per perch, bare land prices are semi-annually obtained from the Government Valuation Department.
The Land Price Index (LPI) was compiled from 1998 to 2008 on an annual basis and from 2009 to 2017 on a semi-annual basis, covering 5 DS divisions in the Colombo District.
From 2017 onwards, its geographical coverage was enhanced to represent all 13 DS divisions in the Colombo District, and hence, it was rebased considering 1st half of 2017 as the base period. From 2020 onwards, LPI was renamed Land Valuation Indicator (LVI) and has continued to be released semi-annually.
‘Before you study the economics, study the economists!’
e-Con e-News 23 February – 01 March 2025
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‘Our economy is running on conditions.
There is no economic independence or sovereignty –
it is under probation and being monitored.’
– President AK Dissanayake, 2025
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‘The nature of the political life of our island must be understood.
We were a colony, a benevolently administered dependency. So long
as our dependence remained unquestioned our politics were a joke.
– The Mimic Men, VS Naipaul, 1967
And so it turns out be, as other leaders – in Sri Lanka and around the world – have long known: that a party may ‘be in office, but not in power’ (see ee Quotes, Cheddi Jagan). This ee reproduces some choice & apt excerpts from Sir Vidia Naipaul’s 1967 novel (see ee Focus), which is said to be partly based on the repeated Anglo-US coups in Guyana in the 1950s and 1960s.
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‘Soon we saw that there had been no need, that our power was air.
We had no trade unions behind us, no organized capital.’
– Mimic Men, VS Naipaul
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And so the ‘stark admission’ from Sri Lanka’s President, has opposition critics declaring that the NPP government – which ‘has so far backed down from its campaign promise of renegotiating the unfavorable debt restructuring agreement brokered by the IMF’ – has, in fact, done so knowingly and willingly.
The IMF’s ‘ambitious and often brutal austerity programs’ are indeed politically, socially & economically unfeasible. The government’s new budget missing the IMF’s deficit target, appears to be due to its promise to resume ‘public capital investment’ – nationally owned assets used for industrial productivity. However, these ‘public investment will be the first line of expenditure to be slashed’, predicts Shiran Illanperuma (see ee Focus)… unless… unless…
The ‘Global South now spends more in debt payments than it receives in grants & loans’, and we are ‘cursed with low growth rates due to a lack of investment’, especially ‘investment in the manufacturing sector’, which ‘is key to technological upgrading, upskilling labor, and unlocking rapid growth in the Global South’. Instead, ‘services have accounted for 81% of new foreign investment projects between 2020-23’.
So, even as there is a ‘renewed push’ for industrialization across many countries – from President Lula da Silva’s New Industry Brazil (Nova Indústria Brasil/NIB) program to the Made-in-China 2025 program, ‘it is unlikely that any government in Sri Lanka can formulate & implement such cohesive plans without confronting the IMF & private creditors which have severely restricted the country’s economic sovereignty’.
Meanwhile, there was news this week too that the US-dominated IMF and World Bank are tying aid to Lebanon to ‘normalization’ of relations with Israel, and the disarming of Hezbollah (see ee Sovereignty).
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Has anyone noticed the eerie homophony between Sri Lanka’s SERU (State-Owned Enterprise Restructing Unit) and Ukraine’s SOERA (State-Owned Enterprises Reform Activity in Ukraine)?
Another fake WWF (World Wrestling Federation) drama – better called, dissimulation – was staged this week in the USA’s Oval Office, showing Ukraine’s leader bantering with the US President. Then there is the kalabala (yet more kayfabe?) about USAID’s supposed demise, which is meant to divert from the real story:
So keep dreaming! The US is reorganizing & outsourcing Empire. It is attempting to freeze their war on Russia (as it has done with its wars on Korea & China – Taiwan). The US is not ending their war in Ukraine, which they have all but lost. This is also evident in the US Vice-President JD Vance’s Munich speech, telling Europe to buy more US weapons rather than make their own, to attack Russia and China. Their Department of Government Efficiency or DOGE device is meant to sharpen ‘the tools of the US Empire – not dismantle them’ (see ee Sovereignty, US is Reorganizing/Outsourcing Empire)
So Trump will surely come for Sri Lanka’s rare earth minerals next (if they haven’t already). US President Donald Trump is reported as yearning for rare earth minerals from Canada, Greenland & Ukraine so as to downgrade Europe’s & their settler states’ reliance upon Chinese exports of these hard-to-find materials. Like from Ukraine, the US can now demand, ‘Pay your debt or we’ll swipe – errrrr, swap – Sinharaja & all our graphite & yet unrevealed minerals & fuels in Sri Lanka.
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Recall: Ecuador’s government completed a Galapagos Debt for Nature Swap in May 2023, repurchasing $1.6billion of Ecuador’s outstanding bonds at ~40 cents on the dollar, saving Ecuador $1.1bn in debt service repayments. The Global Green Growth Institute (GGGI), funded by the Latin American Development Bank (CAF), acted as advisor to Ecuador’s Ministry of Economy & Finance on this ‘green’ transaction. 5 months later, Quito ratified the Status of Forces Agreement (SOFA) with Washington. In December 2024 Ecuador’s President and Banana Co. Oligarch Daniel Noboa permitted the US military to use the environmentally fragile Galapagos Islands as a base for regional surveillance, to combat ‘drug trafficking, illegal fishing’ to prevent ‘violent conflicts… between narco-terrorist groups fighting over drug export routes’. Sound familiar? The archipelago had been declared a World Natural Heritage Site by UNESCO in 1978.
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Last week ee began our glimpse into the over-100-year monopoly of Ceylon Tobacco Co, owned by British American Tobacco (BAT). CTC has deprived the country of billions through such ‘normal’ multinational corporate (MNC) practices as transfer pricing, concealing this data aided by such giant accounting firms as Deloitte, etc. This ee continues Charles Abeysekera’s study: showing how CTC has along the way hijacked not just the Ministry of Agriculture, but also the state banks – Bank of Ceylon and People’s Bank (see ee Focus).
Our story begins with the traditional village economy still based on paddy & highland crops including vegetables; cultivating tobacco only for itinerant Muslim traders – then gradually supplanted by this Anglo-American multinational. This ee examines ‘CTC in the Mahaweli Scheme’ – its active involvement in non-tobacco activities, which their merchant media present to the public as acts of benevolence. Such MNCs or TNCs (transnational corporations) have penetrated into peasant agriculture, also replacing the government and its agencies: irrigation and land development departments, state banks, the cooperative system, and state marketing agencies, totally controlling smallholding peasants, leaving them no choice over crops and cultivation practices. They have also been destroying the forest cover, with the Forest Department reserving the right to the Company to cut such trees for fuel, setting up such companies as Charlanka Ltd – a joint venture between the USAID-funded Enterprise Development Inc. and the Sri Lanka State Timber Corporation!
The story describes how CTC established a restricted market by creating a new layer of middlemen mediating between CTC and tobacco growing peasants, who had no direct dealings with either the CTC or the banks. TNCs have, in effect, replaced the state… Here then is the untold story of the sabotaging of the Paddy Marketing Board, by CTC, etc, just as Sathosa (Ceylon Wholesale Establishment, CWE) has been hijacked by Unilever, and the Fertilizer Corp. by England’s ICI-CIC etc. Most interesting is their control over technology:
‘Contrary to the large colonial enterprises of the past,
TNCs are more interested in the control of activities
than in the actual ownership of natural resources.
The real basis for their powerful position, therefore,
is not the property of land or mineral deposits but the
ownership of the technical process which it is difficult to
attack by the normal procedures of expropriation & nationalisation.’
– EH Jacoby
Meanwhile, England’s CTC has been shutting down their reliance on local tobacco farmers. This week CTC was reported as claiming its revenue fell down in the December 2024 quarter, due to smuggling. However, other countries point out that it is the cigarette companies themselves who are smuggling tobacco and cigarettes into their countries, to avoid taxes. And even better: it is the sophisticated corporate tobacco networks, with their enormous ‘supply chains’ of marketers and salesmen, who are also involved in smuggling prohibited drugs!!! Gangsters, anyone?
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Last week, media in Sri Lanka reported that ‘Lord Swire’ visited Port City… England once forbade the Sinhala calling the Buddha – ‘King’ – Budhurajananwahanse. They wanted the Buddha referred to as Lord Buddha, because England’s King ruled over all of us, including the Buddha. So now here comes Lord Swire, real name: Hugo George William Swire – and how did this Swire become a Lord like the Buddha, in English? The Swires were big profiteers off English slave cotton from the USA, then turned to carrying opium on their shipping lines (P&O, anyone?) from India to China, linking to the pirates Jardine-Matheson (who became the biggest landowners & employers in Hong Kong, and are still!) and set up the opium-financing HongKong & Shanghai Bank! Lordy! Lordy! Lordy!… Buddhu Ammo!
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Germany’s just elected chancellor Friedrich Merz once represented BlackRock in Germany, 2016-20. BlackRock has become one of the largest non-German shareholders in many of the country’s most important companies – from Deutsche Bank to Volkswagen, BMW to Siemens (which helped hijack Ceylon Steel Corporation). It turns out Europeincluding their settler governments & their economic systems have been fully privatized entities effectively run by corporations & banks. Then again, let’s recall England’s Royal African Co with its monopoly over the slavery of Africans, and the East India Co later morphing into the opium-dealing ‘private English’ Jardine-Matheson (which still controls Hong Kong) and palm oil-loving Unilever (which still controls SL), Anglo-American (which still controls South Africa), CTC, ICI-CIC, etc…?
By Yohan Perera and Ajith Siriwardana Courtesy The Daily Mirror
Colombo, Feb 28 (Daily Mirror) – Number of persons in all three armed forces will be reduced while they will be made sophisticated with equipment, President Anura Kumara Dissanayake told Parliament today.
“The Sri Lanka Army will be confined to 100,000 personnel, Sri Lanka Navy to 40,000 and Sri Lanka Air Force to 18,000, the President revealed.
“Our aim is to acquire modern equipment to the forces. Almost all aircraft in the Sri Lanka Air Force are becoming outdated. Therefore, we will acquire new aircraft. The Sri Lankan Navy will also get new craft and new equipment. We will do it without any hesitation,” the President said.
Colombo, March 02 (Daily Mirror) – The special exposition of the Sacred Tooth Relic for the public will be held from April 18 to 27, the President’s Media Division (PMD) said.
It said the exposition to the public will be on April 18 from 3:00 p.m. to 5:30 p.m. and thereafter, from April 19 to 27, daily from 12:00 noon to 5:30 p.m.
A preliminary discussion on the event took place today at the President’s House in Kandy, under the patronage of President Anura Kumara Dissanayake.
President Dissanayake expressed his gratitude to the Mahanayake Theras for granting the Buddhist community of Sri Lanka the opportunity to take part in this sacred event after 16 years. He emphasized that the Buddhist people of Sri Lanka aspire to see the Sacred Tooth Relic revered and worshipped throughout their lifetime.
The President also expressed his belief that this occasion would help restore the declining civility in the country and serve as a catalyst for religious and cultural enlightenment.
Highlighting the significance of organizing such events for the promotion of Buddhist enlightenment, President Dissanayake conveyed his hope that this exposition, which coincides with the New Year celebrations, would help guide the country toward a new direction.
He anticipated the participation of hundreds of thousands of people, with large crowds expected to attend the exposition over the course of the ten-day event. The President stressed that it is the responsibility of all to ensure the public can worship the Sacred Tooth Relic without hindrance and assured that the government will provide full support to facilitate this opportunity for all.
During the discussion, it was decided to establish three separate lines for the public to venerate the Sacred Tooth Relic during the special exposition. President Dissanayake instructed officials to follow the guidance of the Mahanayake Theras regarding the safety of both the Sacred Tooth Relic and the public.
It was also proposed that schools in Kandy be closed during the period of the exposition, with alternative dates for student education to be scheduled.
Considerable attention was given to ensuring adequate sanitary facilities for devotees and managing waste effectively. Plans were also made for a vehicle management system to handle the increased traffic during the event.
Extensive discussions were held regarding the provision of healthcare, drinking water, and other essential services for the public. There was also a proposal to allow people who wish to provide food for devotees to register for the “Dansal”.
Colombo, March 02 (Daily Mirror) – Denying the allegation by Leader of the House Bimal Ratnayake that the former Speaker had used fuel worth Rs. 33 million within nine months from January 1, 2024 to September 24, 2024, which amounts to Rs. 4 million per month, former Speaker Mahinda Yapa Abeywardena said spreading falsehood to gain power will not be successful every time.
The following is a statement issued by former Speaker Abeywardena in this regard:
“I would like to state at the outset that I have not resided in any official government residences since I first entered Parliament in 1983 and until September 2020, when I was appointed Speaker. In September 2020, after almost a month of being appointed, I had to shift to the official residence of the Speaker for official and security reasons.
“I solemnly declare that throughout the entire period of my tenure, I spent my personal money on my meals at the Speaker’s residence. There is no legal provision for government funds to be spent on the meals of a Speaker. However, when special guests, foreign ambassadors or foreign diplomats visit, it is a duty to entertain them, and such expenses are considered as expenses of the Speaker and are incurred at government expense. It is regrettable that all such expenses have been added and presented as expenses incurred for my personal meals.
“Also, from 1983 until I assumed the office of the Speaker in August 2020, even during my various Ministerial positions, I have always travelled in a single vehicle. Just as Prime Minister Harini Amarasuriya found out after assuming office that she will have to travel with escort vehicles for security reasons, I too had to travel with three other vehicles after assuming the office of the Speaker. Every Speaker is allocated three vehicles (an official vehicle and two escort vehicles) and in addition, a jeep belonging to the Police Special Task Force was also allocated to me. I would like to inform the public that these vehicles were the only ones allocated for my needs and those of my security officers. In addition, five vehicles and fuel were allocated for five key officials of my staff.
“The vehicles and fuel provided to those officials were similar to and in accordance with the circulars mentioned in the instruction paper issued by the Secretary to the President of the present government on 21st January 2025 on the staff allowances of Ministers. Therefore, since spending Rs. 33.4 million on fuel for the three vehicles allocated for me over a period of nine months appears even statistically impossible and because running charts of all vehicles are available with Parliament. I request a special audit done in this regard.
“Although it is futile to present more detailed data in a social context that expects short answers, I would like to request journalists who are interested in investigating into the truth, to obtain the details on the above and other allegations made against me from Parliament under the Right to Information Act, and not only to investigate into the years 2023/2024 but also from 2020.
“I also request that legal action be taken immediately if there is any irregularity in this regard. Although spreading falsehoods was a successful strategy to gain power, I believe that using it repeatedly and on a daily basis to reinforce in the minds of the voters that the decision they had made was the right one, will not be successful, even in the short term. I couldn’t agree more with the statement by Minister Bimal Ratnayake when he said that a person cannot be judged a gentleman merely by his attire, but a gentleman is made by his conduct and actions. To this, I would like to further add that holding a high or low office also doesn’t guarantee that one is a gentleman.
“I would like to conclude my explanation by recalling the following two verses from the Dhamma Pada. There is no sin that cannot be committed by people who speak falsehood, ignore the Dhamma, and have no belief in the afterlife.
“If someone harms a pure-hearted and innocent person who has done no harm to others, that harm will return to that fool like a lot of dust thrown up into the wind.
“Since it does not take long for the realities felt by the people to transcend temporary psychological gratifications, I hope that the government led by Minister Bimal Ratnayake will be interested and intelligent in managing the state machinery well and leading the country towards development, and in fulfilling the good promises made to the people soon.”
Colombo, March 03 (Daily Mirror) – In a bid to avert any energy crisis in the future, the government is hurriedly taking measures to purchase both petroleum products, including LNG (Liquefied Natural Gas) from Qatar under a government-to-government agreement, an official said.
Chairman of the Ceylon Petroleum Corporation (CPC) D.A. Rajakaruna told Daily Mirror that two rounds of talks had been conducted with Qatar Energy, formerly Qatar Petroleum, to explore the possibility of importing such products at cheaper rates under a government-to-government deal.
He said Qatar Energy is a state-owned company and, therefore, energy purchases under such a deal are possible.
Asked about similar plans with the United Arab Emirates (UAE), he said, “In that country, only private companies handle the process.”
Currently, Sri Lanka purchases fuel from the open market after calling for tenders from suppliers.
Besides, the government is planning for the rationalisation of setting up new filling stations in the future.
Mr. Rajakaruna said around 1,300 filling stations are in operation at the moment, but most of them have been set up in an ad hoc manner.
“At every junction, there is a filling station. Hereafter, new ones will be put up according to a scientific map being worked out by the Moratuwa University, ” he said.
The two former Sri Lanka Army Intelligence personnel, who were arrested on suspicion of being involved in the abduction and assault of journalist Keith Noyahr in May 2008, have been granted bail by the Mount Lavinia Magistrate’s Court, Ada Derana reporter said.
Accordingly, the two suspects were ordered to be released on two surety bails of Rs. 1 million each.
The two suspects had been arrested yesterday (01) in the Nawagaththegama and Elayapaththuwa police divisions by officers of the Criminal Investigation Department (CID) based on investigations into the assault on journalist Keith Noyahr in May 2008.
On May 22, 2008, journalist Keith Noyahr, was assaulted after being abducted in a van in the Waidya Road area of the Dehiwala Police Division.
The arrested suspects are two retired Army Intelligence personnel from the Military Intelligence Corps (MIC), aged 42 and 46, and residents of the Nawagaththegama and Ulukkulama areas.
The CID is conducting further investigations into the incident.
A discussion has been recently held between the Consumer Affairs Authority (CAA) and salt manufacturing companies at the CAA’s head office.
The discussion had taken place on February 25, and its purpose was to make the necessary interventions to release high-quality salt for industry and food use into the market at a reasonable price.
Accordingly, based on the pricing surveys conducted by the CAA regarding salt prices in the market, the varying prices of salt over the past period, the seasonal shortage of salt, and the challenges faced by the salt industry had also been discussed.
Representatives from eighteen institutions, including government officials and leading salt producers, attended the meeting, with significant focus placed on stabilizing prices, so that consumers are not inconvenienced due to the current market conditions.
The producers also expressed confidence that locally produced salt is scheduled to enter the market in the future and will be sold at competitive prices by the end of March.
They also agreed to the CAA’s request that prices should remain stable without further increases until then.
With artificial intelligence” now becoming the buzzword, citizens should utilize it to gather information while knowing that it is not completely correct. It is an entity giving us information that is in public domain cutting time spent on searching. However, if incorrect data had been fed it is likely that the output we receive will undoubtedly be questionable. Therefore, while we cannot presume ChatGPT to be entire factualy what it is giving cannot be completely disregarded as well. It provides the sources and also encourages us to verify from the original websites, annual reports etc. Also, depending on how the question is asked the answers are likely to vary as well. But it provides a good foundation for investigation.
Therefore, the GoSL is dutybound to investigate as the Speaker himself as agreed to do, primarily because not only political parties, but Parliament, Central Bank, Judicial system, Ministries, Corporations – entire state entities ChatGPT claims to have received funding & collaborated in a variety of programs that constitute a violation of Sri Lanka’s sovereignty & territorial integrity as well as a threat to Article 9 of Sri Lanka’s Constitution as the very entities that fund the State are clamouring to change the Constitution with primary goal to remove Article 9 of Sri Lanka’s Constitution thus fulfilling the colonial goal that they have failed to do since 1505.
So the Trojan Horse has now after over 500 years of trying come inside the gates.
While our attention has always been on civil society, NGOs, think tanks ets being aligned & funded to destabilize Sri Lanka, the enemy has nicely crept into the State apparatus especially following the 2015 regime change.
Nevertheless, governments may come & go, officials can be changed or removed but the Nation must remain protecting & securing the civilizational history & heritage for it is that which has held the Nation together & protected all. Neither of the worlds 2 powerful faiths have moral standing to dictate given that all of the world’s wars involve them while the faith that heralds our nearest neighbor is also involved in unforgiveable destruction & vandalism of Buddhist heritage sites in the North & East.
Going through the list / the amounts disbursed / the programs that are being rolled out doesn’t take an idiot to connect the dots & picture what the ultimate goal is.
This should be a concern not only to the Govt, but the Opposition and every Nation loving citizen.
Pressure must be exerted to launch an immediate investigation on the State entites, MPs, Ministries etc receiving USAID funding while the Constitutional Committee must remove all MPs including PM who have either worked for US agencies or received funds from them. This is a violation of the Constitution & a major conflict of interest knowing that these international agencies are pushing to change the constitution and have been attempting to do so for many years.
By Maheesha Mudugamuwa and Michelle Perera Courtesy The Morning
Fuel distributors stop new orders, warning of shortages tomorrow
Panic buying escalates as public fears fuel shortage
CPC reassures public of sufficient fuel reserves despite protests
Petroleum dealers suspend credit to Govt. institutions
Govt. defends pricing formula, rejects calls for higher profits
Fuel distribution as usual at LIOC, Sinopec, RM Parks stations: Min.
Long queues at fuel stations have been reported across the country since last Friday (28 February) night, as a growing dispute between fuel distributors and the Government intensifies.
The situation is expected to worsen over the next few days, with fuel distributors warning of a complete fuel shortage by tomorrow (3) due to their ongoing protests.
The Petroleum Dealers’ Association has vowed to halt new fuel orders following the Government’s decision to abolish the 3% profit margin previously added to fuel prices.
The protest has triggered panic buying, with many consumers rushing to fill up their tanks, fearing a shortage. Despite these actions, the Ceylon Petroleum Corporation (CPC) has attempted to reassure the public that there were sufficient fuel reserves in the country.
However, the association has made it clear that no new fuel orders will be placed and that post-payment fuel supplies to Government institutions, such as the Police and hospitals, will be suspended.
The distributors argue that the new payment formula, which cuts into their profit margin, is unsustainable, especially given the high investment costs involved in running fuel stations.
Fuel distributors have confirmed that they will continue their stance of halting new orders, despite the Government’s agreement to meet with them on Tuesday (4). A spokesperson for the Petroleum Dealers’ Association expressed strong opposition to the Government’s decision to remove the 3% profit margin added to fuel prices.
In a media briefing, Petroleum Dealers’ Association Vice President Kusum Sandanayake explained that the existing fuel stocks at stations would only last until tomorrow (3) morning due to the suspension of new orders from Friday night.
The association stated that no new orders had been placed with the CPC for fuel distribution starting yesterday (1). It also announced that fuel ordering would cease from midnight on Friday (28 February), leading to a complete shortage of fuel at filling stations by tomorrow.
The association’s Central Committee has scheduled a protest at the Presidential Secretariat later today (2).
The CPC’s decision to abolish the 3% discount given to distributors and implement a new payment formula is set to take effect tomorrow (3).
We will sell off all the fuel we have already purchased, but we will not be placing any new orders due to the unfair treatment we have faced,” the association said.
It is becoming increasingly difficult for fuel station owners to continue operating under these conditions,” a representative added.
He further explained that private distributors faced significant costs, including maintenance expenses, which they needed to cover to keep their businesses afloat. Under the current system, a fuel station that handles 15 deliveries of petrol would only make around Rs. 62,300 in profit, which is simply unsustainable,” he stated.
Meanwhile, Fuel Station Owners’ Association (FSOA) President Kumar Rajapakshe expressed concerns to The Sunday Morning about the fairness of the recent price formula proposed by the CPC.
He argued that the formula did not take into account the significant investments made in prime locations across the country, which were critical for their expected Return on Investment (ROI).
We have invested millions of rupees in these properties,” Rajapakshe said, noting that there were two types of fuel stations: those owned by the CPC and those that were privately owned. He emphasised that privately owned stations were the most affected by the new formula.
However, Rajapakshe pointed out that fuel stations operated by Lanka IOC (LIOC), RM Parks Ltd., and Sinopec had decided to maintain the 3% commission for distributors, ensuring no issues with fuel supply at those stations.
We anticipate shortages and we have been asked to meet with them on Tuesday (4),” he added.
However, CPC Chairman D.J.A.S. De S. Rajakaruna clarified that the Government’s decision to revise profit margins was based on actual costs, not on sales prices. He further explained that the ongoing issue had been sparked by one group of distributors who had publicly announced their refusal to purchase fuel, which he said misrepresented the situation.
The situation is different from what was portrayed,” Rajakaruna said, noting that the CPC had 1,696 orders, LIOC 471, Sinopec 391, and RM Parks 366, totalling 2,924 fuel orders. He assured that distribution was ongoing as usual.
Rajakaruna also stressed that the new pricing formula was designed to protect distributors and prevent unfair profits at the expense of consumers. We consider distributors as part of the fuel network,” he added.
Minister of Labour and Deputy Minister of Economic Development Prof. Anil Jayantha Fernando echoed these reassurances in Parliament yesterday (1), stating that there was no fuel shortage in the country. He accused organised groups of attempting to create an artificial fuel crisis to exaggerate the situation.
The Ministry of Energy has backed the CPC’s decision to revise commission rates, rejecting calls for negotiations with the Petroleum Dealers’ Association.
Ministry of Energy Secretary Prof. Udayanga Hemapala explained that the dealers’ demands for higher profits were unreasonable, as commissions should not fluctuate with fuel prices.
Previously, the dealer margin was around 2.5%, which was later increased to 3% when fuel prices were lower. Now that prices have doubled, continuing to calculate commissions as a percentage would result in excessive profits for dealers to the detriment of consumers,” he said.
Despite concerns over fuel shortages due to the Petroleum Dealers’ Association’s threat to halt new fuel orders, Hemapala reassured the public that there was no crisis.
Fuel remains available in the country and any issues are related to distribution, not supply,” he explained. Even if private dealers refuse to place new orders, CPC-owned stations and Lanka IOC outlets will continue operations.
Hemapala stated that the situation primarily affected privately owned stations but noted that it was not a significant concern, as the situation could be managed without them.
In response to reports of long queues in Colombo, he attributed this to public panic rather than an actual shortage. He expressed confidence that the dealers would understand the rationale behind the Government’s decision and ultimately comply.
The International Monetary Fund (IMF) announced its Executive Board has completed the third review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR 254 million (about US$334 million).
This brings the total IMF financial support disbursed to SDR 1.02 billion (about US$1.34 billion).
IMF Deputy Managing Director Kenji Okamura issued a statement saying that reforms in Sri Lanka are bearing fruit and that the economic recovery has been remarkable. Inflation remains low, revenue collection is improving, and reserves continue to accumulate.
Economic growth has averaged 4.3 percent since growth resumed in the third quarter of 2023. By the end of 2024, Sri Lanka’s real GDP is estimated to have recovered 40 percent of its loss incurred between 2018 and 2023. The recovery is expected to continue in 2025.
” As the economy is still vulnerable, it is critical to sustain the reform momentum to ensure macroeconomic stability and debt sustainability and promote long-term inclusive growth. There is no room for policy errors,” he said.
