By: Staff Writer
January 08, Colombo (LNW): Sri Lanka’s continued reliance on the IMF-led debt restructuring framework may offer short-term stability, but critics warn it also carries serious long-term risks particularly if the country deviates from promised reforms or if the programme itself proves too rigid to absorb new shocks.
The ongoing restructuring rests on strict targets set by the IMF’s Debt Sustainability Analysis, which aims to restore market confidence and prevent a repeat of the 2022 default. Yet even the IMF has acknowledged that Sri Lanka’s recovery path is “knife-edged,” with a significant probability of renewed debt distress if growth falters or external shocks intensify.
Recent cyclone damage has exposed these vulnerabilities. Reconstruction is expected to cost between US$6–7 billion, far exceeding available foreign exchange reserves. At the same time, external debt servicing continues to absorb a large share of government revenue, leaving little room for emergency spending without breaching IMF targets.
Supporters of the programme argue that deviating from IMF conditions would jeopardise access to concessional financing and scare off investors. Any unilateral suspension of debt repayments, they warn, could undermine credibility and delay Sri Lanka’s return to international capital markets.
However, critics counter that rigid compliance carries its own dangers. Continuing repayments while borrowing more for recovery simply shifts the burden into the future, increasing the risk of another restructuring. Moreover, heavy dependence on external discipline limits the government’s ability to respond democratically to voter demands for social protection, climate resilience, and inclusive growth.
There is also the question of fairness. Private creditors, particularly holders of international sovereign bonds, benefited from high interest rates during boom years. If Sri Lanka is forced to maintain harsh fiscal adjustments to satisfy these creditors, public trust in both domestic institutions and the international financial system may erode further.
Deviating from the IMF programme is not without cost, but neither is blind adherence. Failure to adapt targets to new realities such as climate disasters or global downturns could lock Sri Lanka into a cycle of low growth, social strain, and repeated debt renegotiations.
The debate ultimately centres on sovereignty and risk-sharing. A more flexible approach, critics argue, would involve deeper debt relief, temporary suspension of repayments during crises, and greater recognition of climate-related losses. Without such adjustments, Sri Lanka may technically remain “on programme” while remaining economically fragile.
As restructuring talks continue, policymakers face a stark choice: prioritise credibility with creditors at all costs, or recalibrate the programme to ensure long-term sustainability and social stability before another crisis forces the issue.
IMF Orthodoxy Risks Renewed Crisis for Sri Lanka
When Power Forgets Justice: A Warning from History’s Fallen Strongmen
By: Roger Srivasan
History has an unforgiving memory. Dictators may rule by fear, deception, and brute force, but time has an unerring habit of lifting the veil. The illusion of invincibility dissolves; the record remains. From Latin America to the Balkans—and yes, closer to home—the rise and fall of despots offers a singular, immutable lesson: crime never pays—if not before men, then before history itself.
Let us revisit three notorious figures whose ascent was swift, whose cruelty was systemic, and whose downfall was inexorable.
Manuel Noriega — The Proxy Who Outlived His Usefulness
Manuel Noriega’s rise was forged in the murky corridors of Cold War expediency. Groomed as an intelligence asset, he ascended Panama’s military hierarchy to become the country’s de facto ruler in the 1980s—a strongman shielded by usefulness.
Yet power corrupted absolutely. Torture, disappearances, and political assassinations became routine, while narcotics trafficking and money laundering flourished behind the mask of authority. Elections were subverted; dissent was crushed. When Noriega ceased to be convenient and dared to defy his patrons, the shield vanished.
In 1989, foreign troops entered Panama. Noriega was captured, tried abroad, and imprisoned. His story is a brutal reminder: those who rule as proxies are ultimately expendable.
Augusto Pinochet — Order Built on Terror
Augusto Pinochet seized power amid ideological hysteria, promising order and stability after the overthrow of a democratically elected government. What followed was not order, but institutionalised terror.
Thousands were executed or “disappeared.” Tens of thousands endured torture, exile, and psychological ruin. For years, Pinochet believed constitutional immunity and distance would protect him.
Then came 1998. Arrested in London under the principle of universal jurisdiction, he learned a sobering truth: borders do not shield crimes against humanity. Though he died before final judgment, the myth of eternal impunity died first.
Slobodan Milošević — Nationalism as a Weapon
Slobodan Milošević weaponised grievance. In the chaos following Yugoslavia’s collapse, he inflamed ethnic nationalism, portraying brutality as patriotism and conquest as defence.
The consequences were catastrophic: ethnic cleansing, mass displacement, and crimes that scarred Europe anew. Milošević ruled as if sovereignty were a permanent shield.
It was not. Overthrown by his own people and extradited to The Hague, he became the first sitting head of state tried for war crimes. He died in custody—his legacy sealed not by monuments, but by indictments.
A Mirror Held Up to Sri Lanka
Sri Lanka, too, was not devoid of its own home-grown dictators, if we are honest enough to trawl back through the troubled chapters of our once battered and bruised nation. Power here was often personalised; institutions hollowed out; dissent suppressed. The state was bent to serve narrow political dynasties, while fear and patronage masqueraded as governance.
Those years left scars—economic, social, and moral. They fractured trust and fractured identity, teaching citizens to see the state not as a guardian, but as a predator.
Yet today, there is a rare and remarkable reprieve.
Under the new administration led by Anura Kumara Dissanayake, governance has begun—carefully, deliberately—to speak the language of probity, restraint, and accountability rather than entitlement. What is most striking is not merely a change of leadership, but a change of national mood.
For the first time in our post-independence history, people are beginning to feel Sri Lankan together—not divided by ethnicity, class, or political lineage, but united by a shared stake in the future of Sri Lanka.
Cynicism is slowly yielding to civic pride; fear to participation; resignation to responsibility.
This moment does not demand blind adulation. It demands vigilance. But it does deserve recognition. After decades of authoritarian drift and moral exhaustion, Sri Lanka appears—at last—to be relearning the art of collective self-respect.
A Stern Warning—and a Hopeful Coda
To the tyrants still ruling by repression, propaganda, and violence: the ledger is being kept.
Big Brother may not knock today.
Justice may not arrive tomorrow.
But history never forgets—and when the reckoning comes, it arrives without mercy.
Call it international law, collective memory, or—if one prefers—divine justice. The name is immaterial. The outcome is not.
Crime does not pay. Not in the end.
And Sri Lanka’s tentative renewal stands as living proof that even nations once bruised by authoritarianism can reclaim dignity—when power is humbled, and people rediscover themselves not as subjects, but as citizens.
Sri Lanka’s Recovery Tested by Politics, Policy, and Contradictions
By: Staff Writer
January 08, Colombo (LNW): Sri Lanka’s fragile recovery is being tested not only by external pressures but also by internal contradictions that continue to blur policy direction and weaken investor confidence. While the government projects stability and reform, inconsistencies in political messaging, economic management, and foreign policy are raising concerns about whether the country is fully prepared for the next phase of its recovery.
At the heart of the challenge is governance coherence. The ruling coalition brings together ideologically diverse forces, ranging from pragmatic reformists to hardline Marxists. This ideological tension often spills into public discourse, creating confusion among international partners and domestic stakeholders alike. Recent mixed signals on foreign policy, particularly regarding major global powers, highlight the risks of speaking in multiple voices in an interconnected world.
Economically, Sri Lanka has made measurable progress since its debt default, with growth hovering around 3.9% in 2024 and 2025. Manufacturing, construction, and services have shown resilience, and macroeconomic stability has improved. However, this recovery remains shallow and vulnerable. High exposure to external shocks such as shifting trade policies, energy price volatility, and weakening global demand continues to loom large.
The ongoing tariff dispute with the United States underscores these vulnerabilities. Although reciprocal tariffs have been reduced to 20%, they remain at historically high levels and disproportionately affect export-dependent sectors like apparel and rubber. Thousands of jobs are at risk, and export earnings are under pressure at a time when foreign exchange inflows are critical.
Beyond trade, structural weaknesses persist. Productivity growth remains sluggish, investment levels are below potential, and policy execution often lags behind rhetoric. Weather-related disruptions, especially floods and droughts, are increasingly affecting agriculture and infrastructure, while dependence on remittances from the Middle East exposes the economy to geopolitical and labor-market shifts beyond Colombo’s control.
Constructive criticism must also address political accountability. While the government emphasizes transparency and reform, public trust hinges on consistent decision-making, clear communication, and demonstrable outcomes. Investors and development partners look for predictability not ideological posturing or mixed signals that can undermine confidence.
Yet opportunities remain. Sri Lanka’s strategic location in the Indo-Pacific, its educated workforce, and improving tourism prospects provide a foundation for sustainable growth. Deepening trade partnerships, investing in climate resilience, and accelerating digital and technological adoption could help insulate the economy from external shocks.
Ultimately, Sri Lanka’s challenge is not merely economic but institutional. Recovery will depend on aligning political ideology with economic reality, ensuring foreign policy discipline, and translating reform promises into tangible results. Without that alignment, progress risks stalling just as the country begins to regain its footing.
Defence Consultative Committee Reviews Northern Development and Coastal Concerns
January 08, Colombo (LNW): The Ministerial Consultative Committee on Defence of the 10th Parliament met this week under the chairmanship of President Anura Kumara Dissanayake, with discussions centred on national security matters and several region-specific development issues.
At the meeting, members reviewed the follow-up action taken on decisions reached at earlier sessions. Progress was reported on a number of long-standing concerns, particularly initiatives linked to the Northern Province, including the phased release of land, the reopening of key road networks and steps taken to ensure the uninterrupted functioning of schools. Participants also examined obstacles that continue to delay full implementation and explored practical solutions to overcome them.
Considerable attention was given to ensuring unhindered public access to the Sandy Bay beach area in Manayaweli, Trincomalee, alongside ongoing problems faced by local fishing communities. Members discussed measures aimed at balancing security requirements with the livelihoods of coastal residents.
The committee also addressed the issue of severe coastal erosion near the Oluvil Harbour, which has affected surrounding lands and infrastructure. President Dissanayake informed the meeting that the Ministry of Fisheries, Aquatic and Ocean Resources has been directed to undertake a fresh feasibility assessment, with technical support from the National Aquatic Resources Research and Development Agency, to determine sustainable options for the harbour’s future use.
Broader defence-related matters were also on the agenda, including the welfare of service personnel, plans to increase Sri Lanka’s participation in United Nations peacekeeping operations and the need for urgent upgrades to the country’s helicopter fleet.
The meeting was attended by Cabinet Ministers, Deputy Ministers and Members of Parliament, along with the Secretary to the Ministry of Defence, retired Air Vice Marshal Sampath Thuyacontha, and senior officials representing the defence establishment.
SLBFE Recovers Hundreds of Millions as Crackdown on Overseas Job Scams Intensifies
January 08, Colombo (LNW): Sri Lanka’s Bureau of Foreign Employment has reclaimed more than Rs. 374 million on behalf of migrant job seekers who were cheated by individuals and unauthorised recruitment operators during 2025, highlighting an intensified push to combat overseas employment fraud.
The Bureau said the recoveries followed a series of investigations and court actions triggered by public complaints, as well as targeted enforcement operations carried out under the direction of Deputy General Manager Nelum Samarasekera.
These efforts focused on dismantling networks involved in deceptive recruitment practices and false promises of foreign jobs.
Official figures show that nearly 4,800 complaints linked to overseas employment were lodged with the Bureau over the past year, leading to the filing of 791 cases in courts across the country. Many of these cases involved financial exploitation, forged documents and unauthorised intermediaries operating outside the law.
As part of its enforcement drive, the Special Investigation Division conducted 20 raids, including action against two registered recruitment agencies found to be violating regulations. In total, 121 suspects were taken into custody, among them several individuals connected to licensed agencies.
To further strengthen oversight, the SLBFE established a dedicated police unit within the organisation last year, staffed by specially trained officers. The Bureau says this unit has improved the speed and transparency of investigations, while ensuring that offenders are held accountable.
Amid a rise in scams promoted through social media and online messaging platforms, the SLBFE has once again cautioned prospective migrant workers to exercise vigilance. Job seekers are advised to verify the legitimacy of any overseas employment offer by contacting the Bureau’s 1989 hotline before handing over money, personal documents or passports to recruiters.
Sri Lanka-Born Astrophysicist Named to Lead Caltech Through Uncertain Times
January 08, Colombo (LNW): Renowned astrophysicist Ray Jayawardhana has been appointed as the next president of the California Institute of Technology, stepping into the role at a moment when the prestigious science-focused university is navigating funding pressures and shifting federal priorities for research.
The decision was confirmed by Caltech’s board of trustees following an extensive international search, after current president Thomas F. Rosenbaum announced earlier this year that he would be leaving office. Jayawardhana is set to assume leadership of the institution on July 01.
Currently serving as provost at Johns Hopkins University, Jayawardhana brings both academic and administrative experience to Caltech, a 134-year-old institution widely regarded as one of the world’s leading centres for science and engineering.
Based in Pasadena, the university spans 124 acres and is home to more than 300 faculty members and approximately 2,400 students. Its alumni and researchers include dozens of Nobel Prize winners and pioneers behind major scientific advances.
Caltech also oversees NASA’s Jet Propulsion Laboratory, which faced significant workforce reductions last year amid broader constraints on space and science funding. The new president is expected to guide the university through these challenges while protecting its research mission and global standing.
Addressing staff and faculty shortly after his appointment, Jayawardhana reflected on his personal journey into science. He recalled growing up in Sri Lanka during the 1980s, when a booklet from the Jet Propulsion Laboratory — filled with striking images of planets such as Jupiter and Saturn — ignited a lifelong fascination with the cosmos. He described the moment as formative, shaping both his career in astrophysics and his belief in the power of scientific discovery to inspire across borders and generations.
Tobacco Use Continues to Claim Thousands of Lives Each Year in Sri Lanka
January 08, Colombo (LNW): Tobacco consumption remains a major public health concern in Sri Lanka, with close to 22,000 deaths recorded every year as a direct or indirect result of smoking, according to figures released by the Alcohol and Drug Information Centre.
Health advocates warn that non-communicable diseases account for more than four-fifths of all deaths nationwide, with tobacco identified as one of the leading contributors alongside poor diet, physical inactivity and harmful alcohol use.
The Centre estimates that around 1.5 million adults across the country continue to smoke regularly, placing a heavy burden on the healthcare system.
Speaking at a media briefing in Colombo, Chairman of the National Authority on Tobacco and Alcohol, Dr Ananda Rathnayake, stressed that tobacco-related deaths are not confined to Sri Lanka alone. He noted that globally, a life is lost to tobacco use roughly every six seconds, underscoring the scale of the crisis.
The briefing also drew attention to recent policy concerns. Medical professional Dr Sajeeva Ranavira pointed out that cigarette taxation has been reduced since 2021, a move he suggested could undermine efforts to discourage smoking and reverse gains made in tobacco control over previous years.
Health experts at the event urged stronger regulatory measures, public awareness campaigns and fiscal policies to curb tobacco use and reduce preventable deaths in the years ahead.
Indian Army Chief Holds High-Level Talks in Colombo on Defence and Disaster Cooperation
January 08, Colombo (LNW): India’s Chief of the Army Staff, General Upendra Dwivedi, met Sri Lanka’s Deputy Minister of Defence, retired Major General Aruna Jayasekara, during a courtesy visit to the Defence Ministry in Colombo as part of a short official tour of the island.
General Dwivedi arrived in Sri Lanka on Monday for a two-day visit aimed at strengthening military-to-military engagement and reviewing areas of mutual cooperation. He was received warmly by the Deputy Minister, with discussions described as constructive and forward-looking.
According to the Ministry of Defence, the talks highlighted the deep-rooted historical and cultural links between the two neighbouring countries, while also focusing on contemporary security challenges. On behalf of the President, the Deputy Minister conveyed Sri Lanka’s gratitude to India for its swift and wide-ranging assistance following the devastation caused by Cyclone Ditwah.
He noted that India’s rapid deployment of disaster response teams, along with humanitarian supplies and technical support, made a significant contribution to relief operations and early recovery efforts. Appreciation was also expressed for ongoing collaboration between the two defence forces in tackling maritime threats, including the interception of narcotics and other cross-border criminal activity.
The meeting also explored avenues for expanding defence cooperation, particularly in areas such as advanced technology, training, capacity development and the exchange of expertise. Both sides acknowledged the value of closer coordination to address evolving regional security needs.
General Dwivedi commended the resilience and unity demonstrated by Sri Lanka’s government and people in responding to recent natural disasters. He reaffirmed India’s commitment to deepening defence ties across all three services — the Army, Navy and Air Force — and underscored New Delhi’s readiness to continue supporting Sri Lanka in disaster management, humanitarian assistance and professional military training.
Emphasising the long-term nature of the partnership, the Indian Army Chief highlighted the importance of strengthening people-to-people connections at every level of leadership. He also stressed the need for regular joint exercises and exchange programmes to improve preparedness and coordination during emergencies.
The discussions, attended by senior Indian Army officials, the Defence Adviser and representatives of the Indian High Commission, were seen as a reaffirmation of the close friendship between Sri Lanka and India, with both sides reiterating their shared commitment to regional stability and security.
Speculation Grows On Premier’s Removal Amid Education Reform Backlash: House Leader to Step In?
January 08, Colombo (LNW): Prime Minister Dr. Harini Amarasuriya is facing mounting political pressure as controversy intensifies around the education reforms she introduced during her tenure as Minister of Education.
The changes have sparked widespread criticism, drawing objections not only from opposition parties but also from influential trade unions within the education sector, who argue that the reforms have created uncertainty and operational difficulties.
Against this backdrop, political insiders suggest that discussions are under way within governing circles about a possible leadership change at the highest level. According to these sources, the sustained criticism is being viewed as an opportunity to appease sections of the JVP’s cadre by reshuffling the top leadership.
It is further claimed that plans are being floated to elevate Leader of the House Bimal Ratnayake to the position of Prime Minister should Amarasuriya be asked to step aside. Ratnayake has recently returned to the country after an overseas tour that included visits to China and Pakistan, a trip that has attracted attention within diplomatic and political circles.
Some internal sources have gone on to allege that Beijing may be quietly supportive of Mr Ratnayake’s potential appointment, citing his recent engagements and perceived rapport with regional partners.
High Court Fixes January Trial Date in CPC Funds Misuse Case
January 08, Colombo (LNW): The Colombo High Court has scheduled the long-pending case involving former Cabinet Minister Anura Priyadharshana Yapa and seven other defendants for trial later this month, with proceedings set to begin on January 27.
The case centres on allegations that more than Rs. 6.1 million belonging to the Ceylon Petroleum Corporation was improperly diverted during the latter part of 2014 and early 2015. Prosecutors claim the funds were released on the grounds of assisting families affected by flooding in the Bingiriya and Narammala areas, but were instead channelled towards activities linked to a presidential election campaign.
The matter was taken up before High Court Judge Udesh Ranatunga, who, after hearing submissions from both sides, issued orders to commence the trial on the specified date. The court also directed that summons be served on two witnesses, requiring their presence when the hearing begins.
According to the indictment presented by the Attorney General, the alleged misuse of public funds took place over a one-month period from late December 2014 to late January 2015. Five separate charges have been filed against Mr Yapa, who was serving as Minister of Petroleum Industries at the time, along with his wife and six others, all accused of unlawfully spending state resources under the guise of disaster relief.