The Sri Lanka Rupavahini Corporation, (SLRC) the country’s Premier State Media organisation lurched towards financial crisis prompting government authorities to lease out the corporation assets and immovable property to meet recurrent expenditure, Media Minister Bandula Gunawardena said.

With the aim of covering basic expenses including loans it has been proposed to lease a land belonging to the corporation for a sum of over Rs.1 billion to a state university to construct a building , he disclosed

He noted that the private sector will not be involved in this land transaction what so ever.According to treasury sources , SLRC had been losing close to Rs.300 Million annually.

in May 2019 , a sum of Rs. 450 Mn was requested by SLRC from the treasury to pay salaries but had been rejected at a Pre-cabinet meeting as the corporation had not shown promising results.

A senior official of the treasury said that the SLRC required Rs. 200 Mn a month to break-even. But the corporation has been making only Rs. 120 to Rs 140 Mn per month and had been facing an average loss of Rs. 60 to Rs 80 Mn monthly.

He said immediate payables to suppliers were over Rs 100 Mn. And the corporation was currently running on advertisement income

“According to financial statements SLRC’s financial crisis began in 2014 and had worsened in 2017 mainly due to mismanagement.

In June 2022 for the first time in 37 years staff salaries were not paid on time and financials are in dire straits since up to now, informed internal sources revealed. SLRC Ratings are down and the corporation is grossly overstaffed.

It has been revealed that the Treasury has been requested to provide Rs. 240 million for a period of six months to cover the salaries and other essential expenses of the Sri Lanka Rupavahini Corporation. It is stated that the Corporation had to request the favour due to the financial crisis.

This amount has been requested to cover the salaries and essential expenses of the employees during the period from October 2022 to April 2023 .

The Corporation has informed the Treasury that the revenue has decreased to the extent that it has not been able to pay the salaries and cover the essential expenses, SLRC official sources said.

It is stated that the gap between the revenue and expenditure of the Corporation is around Rs. 65 million.

The Rupavahini Corporation employs about 862 people and spends around Rs. 90 million a month to pay their salaries.

The so called economic super star Dr Jayasundara in March last year told a news paper  2021 . One year later we don’t even have money pay for even the essentials? Where is Dr PB Jayasundara and Prof Lakshman,  SR Attygalle the economic assassins of Sri Lanka led by Gotabaya Rajapakse ? Happily spending their retirement at the expense of the taxpayers. 

• Reveals external debt declined by $ 500 m in 2020
• Says home-grown measures taken to service debt successfully
• Expects exchange rate to be realistic, taking strength from improving economic and macro fundamentals

Secretary to the President and former longstanding Treasury Secretary Dr. P.B. Jayasundera

Secretary to the President and former longstanding Treasury 

Secretary Dr. P.B. Jayasundera yesterday described Sri Lanka’s debt as the “most dramatised” story, asserting it was unwarranted given the country’s unblemished track record of repayment.

Speaking at the ‘Colombo Development Symposium’ organised by Biznomics, Dr. Jayasundera said that as a responsible Government it had approached debt servicing and management responsibly amidst multiple challenges. 

“If a country or a company is in debt, the first thing you do is stop borrowing. Companies get people to invest or reinvest. Postelection we started looking at the debt issue more seriously in the same way as the IMF. As a result the Government has recognised the Treasury Secretary is the best positioned and responsible to manage this task in a politically-sensitive economy and a democratic environment,” Dr. Jayasundera said. 


He said that President Gotabaya Rajapaksa via the policy document ‘Vistas of Prosperity’ committed to reduce the budget deficit as a percentage of GDP to 4% in the medium term from 10% at present. This will be done by not reinforcing a higher VAT but assuring to maintain the status quo of the new tax regime introduced.  

For the next five years, income tax will remain at gazetted rates, while VAT will be 8%. There will be no other new taxes. Customs taxes will be rationalised whilst a more efficient, transparent and compliance friendly tax regime will be maintained by the Government.

Dr. Jayasundera disclosed that in 2020 total external debt had declined by $ 500 million, which he said was a unique achievement whilst even in rupee terms foreign debt had seen a drop. It was pointed out that the Government’s aim was to reduce the foreign component in overall public debt from 45% to 24% in the medium term. This will give more space for private sector borrow from overseas, he added.

Focusing on the financing of the debt, Dr. Jayasundera said innovative home grown strategies had been pursued by the Government.

He said that annually Sri Lanka had a debt servicing of $ 5 billion due to multilateral donors and investors of International Sovereign Bonds, etc. “We are talking to World Bank and Asian Development on the better management and maximisation of debt from multilateral donor agencies,” he said.

“State banks have been mobilised to raise borrowing from abroad as well. The private sector banks too should go for same,” Dr. Jayasundera said. During his presentation he also articulated the issues involved in seeking support from the IMF but assured that the Government had managed the debt servicing challenge well and continued to honour all liabilities.

He also said that the forex market was irrational, leading to a spike in exchange rate, which had an adverse impact on foreign debt servicing. However he expressed confidence of the market being orderly and the exchange rate being realistic, taking strength from improving economic and macro fundamentals.

“By April the rupee will strengthen as we continue to improve the management of foreign exchange reserves with robust exports and other inflows and checking outflows with curbs on unnecessary imports via the policy of import substation,” he added.

Dr. Jayasundera also recalled that for the first time in history the country’s finances were governed sans a proper budget but via four successive Vote on Accounts whilst nearly Rs. 250 billion worth of unpaid bills on the previous Government’s contracts were settled. In parallel the public investment drive wasn’t compromised either, he added. For the current Plight of all Sri Lankans – PB Jayasundara and Team must answer. The President must press for action against them through the court system . That is what the Public want . 

Prime Minister Dinesh Gunawardena says that the success of the rural economic revival and food security program requires the direct contribution of governors and provincial council officers and former public representatives.

The Prime Minister emphasized this in a discussion held with the provincial governors through Zoom at Temple House recently regarding the rural economic revival and food security program.

The Prime Minister also emphasized here that the country has already entered into an economic process that can win the trust of the international community by implementing programs to boost the economy at the national level.

Provincial Governors and Provincial Secretaries as well as Chief Secretary Anura Dissanayake and Secretary of Public Administration Ministry MMPK Mayadunne also joined the event.

It is reported that the prices of dhal and sugar have further decreased in the wholesale Pettah market.

Accordingly, it is said that the wholesale price of one kilogram of dal, which was about 375 rupees in the past few days, has now decreased to 350 rupees.

Also, the wholesale price of one kilogram of white sugar, which was around 290 rupees in the past few days, has been reduced to 225 rupees, the Importers of Essential Materials Association stated.

Another crucial discussion between the International Monetary Fund and Sri Lanka’s creditors is scheduled to be held on November 3rd.

Debt restructuring in Sri Lanka is to be discussed at length.

Sagala Ratnayake, President’s Senior Adviser on National Security and Chief of Staff to the President, and Sarwat Jahan, the new Resident Representative of the International Monetary Fund for Sri Lanka, Tubugas Feridhanusetyawan, the Resident Representative of the International Monetary Fund who is leaving Sri Lanka after completing his term of service. Tubagus Feridhanusetyawan) was held yesterday (27) afternoon at the President’s office and this was mentioned.

Special attention was paid to debt restructuring measures as well as creditor’s conference.

Sagala Ratnayake told the representatives of the International Monetary Fund that he expected to inform President Ranil Wickramasinghe about the matters that were focused on in this discussion and to inform the President’s response promptly.

RHS Samaratunga, Senior Advisor to the President on Economic Affairs, was also present in this discussion.

The Public Utilities Commission says that today (29) and tomorrow (30) the power cut is limited to one hour.

Also, the commission announces that there will be a 2.00 hour power cut on Monday (31).

1. Buddha Sasana Minister Vidura Wickremanayake says a new mechanism to be introduced to inform Nayaka Theras about priests involved in anti-religious activities and to take disciplinary action against them, when necessary.
2. Public Security Ministry says Government’s programme to establish over 200 new police stations islandwide has been temporarily suspended: reason is the unavailability of necessary financial allocations and shortage of police officers.
3. In the first 9 months of 2022, 199 rapes, 951 statutory rapes (where the girl is below age of consent), and 273 rapes on children, totalling 1,423 reported to Police: last year’s number was 1,475.
4. During Governor Dr Weerasinghe’s first 203 days in office, Central Bank “prints” a staggering Rs.691 bn at an average of Rs.3.4 bn per day: during Governor Cabraal’s entire tenure of 203 days, “money printed” was Rs.446 bn at an average of Rs.2.2 bn per day: an increase of 54% per day during Weerasinghe’s tenure so far.
5. Police Spokesperson says CID had arrested 2 Chinese and 1 Local person on suspicion of committing crypto-currency frauds amounting to Rs.14 bn (USD 37.8 mn): Police also say only scammers guarantee “big returns”: Sri Lanka’s Government T-Bills now pay over 33% per annum.
6. State Minister Geetha Kumarasinghe states she will officially request President Wickremesinghe to prevent mothers with children below 5 years to work abroad.
7. Hotels Association President M. Shanthikumar urges political fraternity to stop the “drama” and look into the best interests of the country and people: says unruly protests disrupt daily activities of people and businesses: asks authorities to prevent such activities.
8. Police Spokesman says car-jacking and thefts have increased significantly: 1,406 vehicles stolen in the 9 months ending on September 30, 2022, while 1,405 vehicles were stolen during the year 2021: main reason was negligence of the vehicle owners.
9. State Defence Minister Premitha Bandara Tennakoon says the Indian Ocean should not be a “playground” for world military powers: asserts the ocean is a vital channel of communication, a large volume of energy, raw material and food supply between East and West.
10. Deputy Director General – Medical
    Supplies, Dr. D R K Herath says there is a shortage of 160 essential drugs out of 383: hopes well-wishers
    will help.

Colombo, Sri Lanka (28 October 2022) – “My husband’s income has drastically reduced because of the country’s situation. Our entire family now depends on me”, says K. Vanitha, who runs a tailoring business in Ampara, Sri Lanka. As cost of living increases and purchasing power declines rapidly, like Vanitha, many women entrepreneurs are shouldering heavy burdens and struggling with the continuity of their businesses.

UN Women with support from the Government of Japan, provided equipment and productive assets worth LKR 50.4million (approx. USD 140,000) to help women entrepreneurs hit hardest by Sri Lanka’s economic downturn. On 26^th October 2022, Ambassador MIZUKOSHI of Japan handed over some of the equipment, such as sewing machines and flour grinding machines to the women entrepreneurs supported at the distribution ceremony held in Colombo. Besides them, 384 women from the Districts of Ampara, Monaragala and Vavuniya received assistance.

The in-kind assistance provided is part of UN Women’s 3-year project on ‘Implementation of the Women, Peace and Security Agenda in Sri Lanka’ funded by the Government of Japan.

Speaking at the event in Colombo, Hon. Geetha Samanmalee Kumarasinghe, State Minister of Women and Child Affairs said: “This project has also developed the skills of more than 100 officers at the Divisional Secretariat level, who will in turn work to empower and build resilience of other women and ensure gender equality is integrated within Sri Lankan society”. 

Speaking on the need to place women and girls at the centre of relief and recovery efforts, H.E. MIZUKOSHI Hideaki, Ambassador of Japan to Sri Lanka noted that; “It is imperative to involve women and girls who comprise more than half of the country’s population in order to achieve inclusive development. Through our longstanding partnership with UN Women and Sri Lanka, Japan is committed to advancing gender equality and women’s empowerment in-line with the 2030 Agenda for sustainable development”.

As part of the project, close to 800 women have received capacity building trainings on business and entrepreneurship conducted by UN Women and Chrysalis.

“Investing in women’s economic empowerment is at the heart of UN Women’s mandate. The entrepreneurs supported through this project are receiving one-to-one business coaching and mentoring from other established enterprises to help implement their business strategies and ensure continuity, growth and diversification of their ventures”, said Esther Hoole, Officer in Charge at UN Women Sri Lanka.

The participants, including Vanitha, that qualified for in-kind assistance, “developed business plans that were reviewed by an independent panel including local government officials, sectoral technical officers and external stakeholders to assess feasibility and awarding of the requested assistance”, said Ashika Gunasena, CEO of Chrysalis. The enterprises range across several sectors including crop cultivation, agri-business, garments, livestock rearing, food manufacturing, spice grinding, small groceries, value addition to coconut and palmyrah value chains amongst others.

Vanitha who received a sewing machine for her tailoring business said; “Since prices of ready-made garments have gone up, more people are beginning to buy fabric for stitching. This will help me expand my business and future investments”.