February 27, Colombo (LNW): The debate surrounding the 2025 Appropriation Bill, also known as the 79th Budget Speech, is set to begin today (27) in Sri Lanka’s Parliament, marking the commencement of the crucial Committee Stage.

This stage, which will scrutinise the bill in detail, is expected to span over 19 days, including four Saturdays, running from February 27 through to March 21.

The Committee Stage provides a platform for Parliament members to discuss specific provisions of the budget before it proceeds to the final vote.

Following these extensive deliberations, the vote on the third and final reading of the bill will take place on March 21 at 6.00 p.m., after which the budget is expected to be passed into law.

On February 25, Parliament successfully passed the Second Reading of the Appropriation Bill with a majority of 109 votes. Out of the 201 votes cast, 155 were in favour, and 46 were against, setting the stage for the more detailed review in the Committee Stage.

The passage of the Second Reading was an important milestone in the budgetary process, and now the attention shifts to the in-depth scrutiny that will occur during the Committee Stage debates.

Earlier this month (17), President Anura Kumara Dissanayake, also serving as the Minister of Finance, formally introduced the Second Reading of the Appropriation Bill in Parliament. The debate on the bill lasted for seven days, from February 18 to February 25, allowing for a thorough exchange of views on the proposed allocations for the year 2025.

February 27, Colombo (LNW): Healthcare unions across Sri Lanka are set to take action today (27) in response to what they have called ‘unjustified cuts to allowances’ in the 2025 national budget.

The Government Nursing Officers’ Association (GNOA) has confirmed that its members will stage a demonstration outside government hospitals around the island, coinciding with the lunch hour from 12.00 p.m. to 1.00 p.m.

This protest is aimed at drawing attention to the financial reductions affecting healthcare workers, which they argue undermine their essential contributions to the public health system.

In a statement issued by the GNOA, Vice President Nalaka Hettiarachchi assured the public that whilst the protest will take place, it will not interfere with essential hospital operations or patient care during the demonstration.

Hettiarachchi emphasised that the protest is designed to be a peaceful display of dissatisfaction, aimed at urging the government to reconsider the budget cuts impacting healthcare workers’ allowances.

Meanwhile, in a parallel development, the President of the Public Health Inspectors’ (PHIs) Association, Upul Rohana, revealed that health inspectors in the Eastern Province will join the protest in a different form.

These workers will engage in a token strike by reporting sick leave as a form of protest against restrictions placed on overtime hours. Rohana explained that this action is in response to a decision in the 2025 Budget to limit overtime work, which, according to the association, has a direct impact on the livelihood of public health inspectors who rely on these additional hours.

The discontent surrounding the 2025 Budget has also sparked frustration amongst other sectors of the healthcare workforce. The Principal-Grade Officers’ Association, which represents a range of senior healthcare professionals, has expressed disappointment over their exclusion from the expected allowances in the latest budget.

The Association’s President announced that plans are already in motion to organise a larger-scale protest in Colombo in the coming days to voice their concerns and demand fair compensation for their roles.

February 27, Colombo (LNW): Veteran actor and make-up artist Wasantha Wittachchi has passed away, according to family sources.

Wittachchi, who earned his spotlight through ‘Kadaima’ teledrama contributed to the Sri Lankan cinema, theatre, and television as an artist for more than four decades.

He also gained reputation as a make-up artist and is recognised as one of the greatest Sri Lankan performers of all time.

Wittachchi was receiving treatment at the Kotelawala Defence University Hospital in his last days. He was 68 at the time of his demise.

His funeral arrangements are to be announced soon.

February 27, Colombo (LNW): Showers or thundershowers will occur at times in Northern, North-central, Eastern and Uva provinces and in Matale, Nuwara-Eliyaand Hambantota districts, and showers or thundershowers will occur at several places elsewhere during the afternoon or night, the Department of Meteorology said in its daily weather forecast today (27).

Fairly heavy showers above 75mm can be expected at some places in Eastern and Uva provinces and in Matale, Nuwara-Eliya, Polonnaruwa, Galle, Matara, Kaluthara and Rathnapura districts.

Fairly strong winds of (30-40) kmph can be expected at times over Northern, North-central, Eastern and North-western provinces and in Matale, Nuwara-Eliya and Hambantota districts.

The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Top professional Damien Fernando has been re-appointed to the Board of Distilleries Company of Sri Lanka PLC (DCSL) as an Executive Non-Independent Director.

Fernando is a Fellow Member of the Chartered Institute of Management Accountants (UK), having completed the examinations in 1984. In 1992, he was awarded an MBA by the Postgraduate Institute of Management of the University of Sri Jayewardenepura, Sri Lanka.

In 1989, Fernando assumed DCSL’s Chief Accountant position. In 1990, he was promoted to the position of Finance Manager. He was appointed to the company’s Board in 2006. He resigned from the Board in 2008 to accommodate the appointment of an Independent Director.

Fernando is an Executive Director of the Group holding company Melstacorp PLC, DCSL Breweries Lanka Ltd., and several other subsidiaries of the Melstacorp Group. Additionally, he serves as a Non-Executive Director of HNB General Insurance Ltd. and HNB Assurance PLC.

Fernando served as an Executive Director of Lanka Hospitals Corporation PLC (2006-2009) and Sri Lanka Insurance Corporation Ltd. (2003-2009), which were Group subsidiaries at the time. He also served as a Non-Executive Director of Hatton National Bank PLC from 2012 to 2018.

DAILY FT

Sri Lanka is expected to service a total debt of $2,454 million in 2025, comprising $1,369 million in principal repayments and $1,085 million in interest, according to Deputy Minister of Economic Development Anil Jayantha. In the following years, the country’s debt burden remains significant. 

For 2026, Sri Lanka must repay $1,191 million in principal and $931 million in interest. In 2027, the figures are projected at $1,196 million in principal and $893 million in interest, while in 2028, repayments will surge to $2,133 million, with an additional $974 million in interest obligations.

As part of the International Monetary Fund (IMF) program, a June 2024 report estimated Sri Lanka’s overall debt service obligations at $7,184 million for 2025, with a projected increase to $15,105 million in the coming years. 

These figures are subject to periodic revision based on evolving economic conditions. Addressing concerns in parliament, 

Minister Jayantha assured that Sri Lanka has successfully met all quantitative performance criteria under the IMF program, including net international reserve (NIR) targets. NIR represents a country’s gross reserves minus liabilities related to reserves.

The central bank of Sri Lanka has historically relied on borrowing foreign exchange from institutions like the IMF, India, and local banks to maintain a targeted policy rate through inflation-driven open market operations. 

However, over the past two years, the central bank has repaid debts owed to Bangladesh, the Reserve Bank of India, and the IMF. Calls have emerged in parliament to prohibit the central bank from using foreign exchange swaps to fund monetary policy, as such strategies have previously led to significant financial instability.

A crucial issue has been Sri Lanka’s reliance on a fixed policy rate, which has resulted in excessive reserve injections. This approach has created liquidity surpluses, preventing interest rates from rising naturally and contributing to forex shortages.

 During the peak of the financial crisis in 2024, Sri Lanka’s net reserves plunged to a negative $4.6 billion. However, in recent months, they have returned to positive territory, partly due to deflationary open market operations.

Debt Servicing in 2025: A Major Challenge

Despite recent improvements, Sri Lanka faces significant debt servicing obligations in 2025. With over $2.4 billion in payments due, maintaining financial stability will require continued fiscal discipline and strategic economic policies. 

The government is expected to rely on IMF support, foreign direct investments, and improved revenue collection to meet its obligations. 

However, with rising debt repayment commitments in the following years, ensuring long-term economic resilience remains a formidable challenge.

Sri Lanka’s Motor Traffic Department (MTD) is undergoing a major digital transformation to enhance service efficiency, combat corruption, and improve citizen convenience.

This initiative aligns with the government’s broader push for digitalising public services. However, the project faces numerous obstacles, including outdated infrastructure, slow progress, and resistance from corrupt officials.

To streamline operations, the MTD has introduced online services for vehicle registration, license renewals, and fee payments.

 Despite these advancements, the digitisation effort, initiated in 2018, has been plagued by procurement delays and administrative inefficiencies. Senior officials attribute these setbacks to bureaucratic red tape within the tender board and delays in procurement, exacerbated by frequent government changes.

One of the key challenges is the outdated system, which has remained unchanged for over two decades. Frequent transfers and retirements of senior officials have resulted in inconsistent decision-making and stalled projects. 

Additionally, the system’s infrastructure is inadequate for modern technology, leading to heavy reliance on external vendors, some of whom have abandoned projects due to inefficiencies.

In 2016, the MTD launched a tender for the “e-Motoring” system, aimed at improving vehicle registration and transfer processes. 

The project was awarded to a local company in 2018 but has faced repeated delays due to unsuitable office space and administrative bottlenecks. The planned relocation of the department has also been delayed, further hindering progress.

Another major roadblock is internal resistance from corrupt officials benefiting from the outdated system. Allegations of corruption and fraudulent activities have surfaced, leading to investigations by the Bribery Commission and the suspension of several officials. The lack of proper record-keeping and poor organisation of vehicle registration documents has further enabled malpractice.

Despite these difficulties, MTD Commissioner General Nishantha Anuruddha Weerasingha has implemented reforms to improve operations. 

The department has started digitising and archiving vehicle registration documents to enhance record-keeping. Instead of relocating, the Commissioner has opted to continue the e-Motoring project from the current Narahenpita office.

Progress has also been made in addressing backlogs. Under the Commissioner’s leadership, the MTD has significantly increased revenue despite restrictions on vehicle imports. Additionally, the backlog of over 950,000 pending driving license applications has been reduced by 95%.

Looking forward, the MTD plans to introduce an e-Driving License system, accessible via mobile phones, and a traffic violation tracking system using demerit points, allowing real-time fine payments.

 While full digitisation remains a challenge, these steps mark significant progress toward modernising the department and improving service delivery.

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