February 24, Colombo (LNW): Sri Lanka’s debt crisis has been the most critical issue affecting its economy post the 2022 meltdown, with years of borrowing to finance development projects, cover fiscal deficits, and manage post-war reconstruction.
The current state of Sri Lanka’s debt repayments are still to be concluded and several measures need to be taken to alleviate the burden, and to manage its ongoing obligations, economic analyst company director and new Chairman at Union Bank, Dinesh Weerakkody said
While the road ahead remains challenging, Sri Lanka’s clear commitment to fiscal responsibility and economic growth prospects combined with international support, offers hope ,he added.
Sri Lanka is facing a significant debt service burden in the coming years, with payments in 2025 estimated at US $2.45 billion.
This amount comprises $1.37 billion in capital repayments and $1.08 billion in interest, according to Deputy Minister of Economic Development Ani Jayantha.
The financial obligations remain substantial in the following years as well. In 2026, the country must repay $1.19 billion in principal and $931 million in interest.
In 2027, the debt service includes $1.2 billion in principal and $893 million in interest, while in 2028, repayments rise to $2.13 billion, alongside $974 million in interest.
These figures, however, only reflect immediate debt commitments. Under the International Monetary Fund (IMF) program, projections from a June 2024 report indicate a much larger debt service obligation, rising from $7.18 billion in 2025 to an alarming $15.1 billion in the coming years.
Minister Jayantha noted in parliament that these projections would be revised periodically to reflect economic conditions and fiscal policies. The actual reserve collection under the IMF program is tied to a net international reserve target as a quantitative performance criterion, which Sri Lanka has so far managed to meet.
Net international reserves, defined as gross reserves minus reserve-related liabilities, remain a key concern. Sri Lanka’s central bank has historically borrowed heavily from multiple sources, including the IMF, India, and local banks, to support a fixed policy rate.
This was achieved through inflationary open market operations, which injected excess liquidity into the banking system.
Over the past two years, some progress has been made in repaying debts, including those owed to Bangladesh and portions of loans from the Reserve Bank of India and the IMF.
However, there have been calls for legislative action to restrict the central bank’s ability to borrow foreign exchange through swaps and subsequently lose them by maintaining a fixed policy rate.
Rising Risks and Economic Vulnerabilities
Sri Lanka’s debt service burden is exacerbated by structural economic vulnerabilities. The country has struggled with recurring balance of payment crises due to excessive reliance on external borrowing and currency mismatches in its debt profile.
At the peak of the crisis in 2024, the central bank’s net reserves plummeted to a negative $4.6 billion. A shift towards deflationary open market operations in recent months has helped reserves return to positive territory, but the overall debt sustainability remains fragile.
February 24, Colombo (LNW): Sri Lanka is planning to allow number portability from June 2025, according to a statement on the proceedings of a Ministerial Consultative Committee on Digital Economic Affairs held at the parliament.
The Consultative Committee meeting was chaired by President Anura Kumara Dissanayake. “The Committee also discussed the possibility of mobile phone users to regain the same mobile phone number they used when changing their mobile phone network operator, and in response, the officials said that this facility will be implemented from next June,” the statement said.
Number portability allows a subscriber to switch networks using the same number.Though there has been talk of allowing number portability for many years, it has not happened.Number portability allows greater competition which and can impact the larger players.
The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) is receiving queries from the public regarding the implementation of Number Portability (NP) service. The Commission has taken the following steps to implement NP service, TRC said in a statement in September last year
Initially, the Commission held discussions with the operators and made a plan to implement the NP service.A Public Consultation Paper was published in 2021, and the views of all relevant stakeholders were obtained, it added. .
The appropriate technical model was then decided in consultation with the telecom operators. A company called Lanka Number Portability Services (Guarantee) Limited (LNPS) was formed with the participation of all fixed and mobile operators for the operation and administration of the NP service, TRCSL disclosed. .
TRCSL granted the licence required for the operation of NP service to LNPS.The approval of the Attorney General’s Department has been granted for NP Rules and Guidelines, which were prepared in coordination with Telecom Operators.
LNPS initiated the procurement process to select a suitable entity to provide the technical system and the technical evaluation has been completed. TRCSL has been informed that the financial evaluation is being done and it can be completed by January 2025.
Upon completion of the entire procurement process, the LNPS will select a suitable equipment supplier and complete the installation of the system. It is expected to commence the provision of NP service thereafter.ut added.
However Sri Lanka’s telecommunications regulator has ruled out the implementation of the Mobile phone Number Portability (MNP) which would have allowed subscribers to switch networks while using the same number in November 2020.
The proposal has been rejected due to the huge cost involved (in its implementation). Former Director General of Telecommunication Regulatory Commission (TRC) Anusha Palpita at that time said at least US$96 million investment is needed to implement this service with the return on investment very low in a small mobile phone market such as Sri Lanka.
He added that such a huge investment should be made by local mobile telecom operators and it will be more prudent for them to use that money in providing a better service to their customers.
Mr. Palpita warned that if they go ahead with the plan to introduce MNP, local telecom operators would pass the huge cost incurred by them on to customers.
Those who are ‘confined to a specific network, simply because they want to keep the same number and not because of specific advantages from that network would be able to switch to a better network if this change is implemented.
February 24, Colombo (LNW): Under the leadership of President Anura Kumara Dissanayake, the Sri Lankan government is taking decisive steps to investigate and address major corruption scandals and financial crimes. A key focus of this initiative is the recovery of overseas assets linked to influential political figures, with efforts also directed toward revising international legal frameworks to enhance asset recovery.
Several high-profile cases are being revisited, including the Central Bank bond scam, the misappropriation of sugar tax revenues, the garlic fraud, irregularities in coal procurement for the Lakvijaya Power Plant between 2022 and 2025, and the controversial purchase of 96,000 metric tons of organic fertilizer.
To strengthen this anti-corruption drive, the government is preparing to introduce a new bill in parliament. This legislation aims to empower a specialized team of experienced investigators with statutory authority to handle complex financial crime cases. Currently, investigative authority is concentrated under the Director General of the Commission to Investigate Allegations of Bribery or Corruption, but the new bill seeks to expand and expedite these efforts.
Wasantha Samarasinghe, convener of the JVP-led Anti-Corruption Voice and a key figure in the National People’s Power (NPP) executive committee, emphasized the government’s commitment to ensuring corrupt individuals face justice. He highlighted that 118 files on financial crimes, originally investigated by the now-defunct Financial Crimes Investigation Division (FCID), remain unresolved at the Attorney General’s Department.
In 2016, the NPP had submitted 570 cases to the FCID, the Criminal Investigation Department (CID), and the Bribery or Corruption Commission. Among these, 118 cases had been thoroughly investigated by the FCID and forwarded to the Attorney General’s Department, yet no legal action has been taken so far.
The International Monetary Fund (IMF), in its Technical Assistance Report on Governance Diagnostic Assessment, acknowledged the critical role of Sri Lanka’s recent anti-corruption efforts. The IMF report noted that the mass protests of 2022 reflected public consensus on systemic corruption being a key factor in the nation’s economic crisis. The resignation of former President Gotabaya Rajapaksa in July 2022 underscored the urgent need for governance reform as an essential step toward economic stability, with civil society actively pushing for greater accountability and transparency.
Significant legislative reforms have also taken place. The Anti-Corruption Act No. 9 of 2023 replaced the outdated Bribery Act No. 11 of 1954, the Commission to Investigate Allegations of Bribery or Corruption Act No. 19 of 1998, and the Declaration of Assets and Liabilities Law No. 1 of 1975. Under the new law, the Anti-Corruption Commission is authorized to conduct preliminary inquiries and, upon finding reasonable grounds, direct the Director General to initiate full investigations and legal proceedings.
According to the revised legal framework, if an accused individual pleads guilty, the magistrate can record a conviction and impose a sentence in accordance with the law. For those who contest the charges, the proceedings will follow the Code of Criminal Procedure Act No. 15 of 1979, with necessary adjustments made for magistrate court trials.
With these strengthened legal and investigative measures, the government aims to restore public confidence and establish a more transparent system to combat corruption and financial misconduct in Sri Lanka.
February 21, Colombo (LNW): We realized how dangerous rugby is in Sri Lanka with the death of Thajudeen. He was a player who represented Sri Lanka’s ‘A’ sports clubs. A very talented player. No one competed for him with a black belt. There was no two-minute silence before the matches started. No one stood on the road, holding up a sign to commemorate the fate of their comrade. Some may have been silently reflecting on how dangerous it is to strike your head against hard black rocks, while Some might have even thought about leaning against those black rocks and feeling comfortable.
That was because the game was overshadowed by the political noise surrounding the group suspected of being involved in Thajudeen’s murder, and their obsession with silencing others.
They also had the ability to leverage their diplomatic connections and garner more and more support both domestically and internationally. When Namal Rajapaksa became the Sports Minister of this country, we thought he would take big steps to promote his sport, rugby. But instead of supporting the current administration, he added his name to history. What he did was to bring rugby into disrepute internationally, to compensate for that crime by cutting funding for rugby development in this country, and to create an advisory council to put the administration under his control, by appointing the person who could have taken responsibility in Asia without an investigation, since the law was not enforced under his father’s government. Through existing state relations, with the blessing of the president’s cousin, and the son of the former president and then prime minister, the Asia President, he showed the way that Sri Lanka should have its own preferred rugby.
The social suspicion that challenges them within a criminal mechanism that is not limited to these crimes, at least creating resentment and threatening to say “I know everything” is considered an act that will not be allowed to be spoken about again has not yet been removed.
It is doubtful how a government that came to power with a social criticism that arose from understanding its depth and evil ideas and using that as one of the reasons, can still be blessed to maintain the rugby shape in a Rajapaksa-style form.
It is becoming clear that such operations are hanging in interesting places everywhere. Some of those who have left the Rajapaksa network, not in the spirit of last-minute departures, may have come with the desire to protect it. But the less experienced sometimes touch on these with the heavy words sown by officials about separate severe official responsibility, and not from real practicality. Officials are very capable of breeding these to ministers. The former Ombudsman informed the Director General in July 2024 that it was worth investigating the worst tragedy in rugby history. He must also have known about some of the facts. At the time of this incident, the Immigration and Emigration Commissioner was in office and not only the Director General but also the then Secretary to the Ministry was informed. If it is said that this was not informed, it is worth examining the letters that arrived from the Ombudsman’s office to the offices of the Director General and the Ministry Secretary on July 4th and 5th.
These events are very clear. They are planned. They may have been done from a distance that the minister cannot see. Accordingly, the chief executive of the administration related to the biggest rugby tragedy will have to be brought to the chairman of the National Sports Advisory Council by the minister.
Those who were in every sports body that caused a lot of damage by carrying forward the actions of the Sports Minister Namal Rajapaksa have come and taken their seats again with the responsibility of advising. In order to ensure the obedience of the sports clubs in that category, which have not seriously affected the player who played within their circle since the murder of Thajudeen, a constitutional change that will transfer more of the burden of the rugby mechanism to them is being made in accordance with international demands, disregarding the judicial agreements of Sri Lanka.
There is also something to think about. Yoshitha Rajapaksa’s naval exploits are a very well-known story. The current Director General, who was at the top of the Navy at that time, had no desire or feeling to oppose any of the privileges he received. It is not that there are not those in the army who have gone off duty due to some wrongdoings and returned to hold high positions. For example, Shani Abeysekara, who was summoned to the police at this moment with great confidence, can be taken. Therefore, as an officer who knows the formula for achieving his immediate goal by being flexible and working more flexibly to politics or appearing to be so, the Director General has been able to gain the trust of three Sports Ministers in this limited history as a close officer.
The Minister does not understand the need to continue the responsibility of changing rugby with an international face and influence under the old constitution, even if the court says so, as a result of not reading the source and not experiencing it in practice. Even if so, when the local rugby administration, which is doing business with the international community, goes to the constitutional amendment with decisions taken on matters that affect the destructive present of rugby in Sri Lanka, many of those who are trying to protect it by amending the constitution without going to an election at this moment may not even have the opportunity to stay in rugby again.
But everything is happening and the minister is also holding that he believes that he has to believe that he has to believe that we are not clear about what poison has been fed to us. But it will be more credible than the risk of our lives. We do not hesitate to accept the risk. It is the witnesses of a history that we have experienced. Once, in an incident that raised suspicions of being chased and kidnapped, this writer and Priyan R. Wijebandara came forward on behalf of Sanath Balasuriya. The result was that the famous white van transport service came after us. Since there was a loving heart in Keells on Marine Drive, we were allowed to hide in it for a while.
But our friends and family, like us, were victims of this brutal political invasion. They challenged it knowing it better than us. They gave us the knowledge and practice of giving meaning to life for people who continue to live in the face of signs of death. Before our friend Poddala Jayantha was brutally attacked, he came to our office for discussions and before leaving, we were so scared that we asked, “Is there anything wrong, man? Can you go?” The ‘Poddala’s’ courage showed us the way to take them with a light smile and engage in their practice. In such a way, when we realize that many media friends who were victims, while fulfilling their responsibility, did not waste time on the terrifying shadows of death that followed them, and even reduced our meetings for a moment to keep our lives safe, we know that in a society that sees sports as a game, its socio-political impact and the scope of its potential for spread are enormous. Therefore, when looking at political history, it will be felt that the need to bring foreigners who were fined £50,000 to play sports in Sri Lanka is similar to topics such as the money flowing into sports clubs and the Hambantota Commonwealth Games.
Therefore, knowing the danger and its fear, we will not allow ourselves to be silenced. We do not know whether the Sports Minister, as a man who does not maintain this silence, has completed the struggle exercise that he agreed to at the first moment after assuming power. However, it must be said that wreaths are unnecessary on a day when we are silenced when the truth is not spoken due to the opportunity given to lies.
Having concluded that Thajudeen died on Park Road from injuries sustained when his car was involved in an accident, caught fire, and some of the equipment in the car struck his body like blunt weapons, leaving aside grief for his comrade, there is no protest against the team that is trying to improve the entire sport by surrounding people who are happy with the accused, only a sense of disappointment that has been completely shattered.
February 24, Colombo (LNW): A recent report by the National Audit Office has uncovered serious discrepancies regarding the vehicle fleet registered under the Ministry of Finance.
The report reveals that the physical presence of 176 out of 257 vehicles could not be verified, raising questions about the management and accountability of state resources.
According to information sourced from the Department of Motor Traffic for the year 2023, a large number of these vehicles are unaccounted for, with no verification of their existence at all.
Furthermore, the report highlights that for 99 of these vehicles, no supporting documentation was submitted to auditors, exacerbating concerns over transparency within the Ministry.
The Chief Accounting Officer of the Ministry has informed auditors that efforts are ongoing to track down and verify details regarding the 176 missing vehicles.
However, the audit report strongly urges the Ministry to take immediate action to confirm the ownership and physical location of all vehicles registered in its name, ensuring proper records are maintained.
In addition to the unverified vehicles, the report also revealed that 44 vehicles had been handed over to various institutions by the Ministry without the formal transfer of ownership.
This practice further complicates matters, as it leaves no clear indication of accountability for the vehicles.
Furthermore, the audit highlights that 11 vehicles were obtained from other institutions without completing the necessary transfer procedures, raising concerns about the lack of due diligence in the process.
February 24, Colombo (LNW): The government has confirmed that several officials within the judiciary will be questioned in connection with the killing of Ganemulla Sanjeewa inside a courtroom, announced Chief Government Whip Dr. Nalinda Jayatissa, in Parliament today (24).
The Minister emphasised that the authorities are treating the incident with the utmost seriousness.
Responding to a query raised by Opposition Leader Sajith Premadasa, Jayatissa revealed that arrests had already been made, including members of the security forces and the police.
The authorities are continuing their investigations into the tragic event, which occurred within the confines of the court, raising concerns over the safety and security of judicial institutions.
“The government is committed to ensuring that justice is served, and we are taking every necessary measure to address this situation,” Jayatissa asserted.
February 24, Colombo (LNW): The Supreme Court has scheduled hearings for a series of Fundamental Rights (FR) petitions challenging the appointment of Deshabandu Tennakoon as the Inspector General of Police (IGP).
The petitions, which raise concerns over the constitutional validity of Tennakoon’s appointment, were taken up by a five-judge bench today (24), with proceedings set to continue in May.
The petitions, filed by various parties, argue that the manner in which Tennakoon, who was previously the Senior Deputy Inspector General (DIG) for the Western Province, was appointed to the post of IGP is unconstitutional.
The petitioners seek a court declaration stating that the decision to appoint Tennakoon is invalid.
Representing Tennakoon, President’s Counsel Romesh de Silva presented evidence before the court, informing the bench that an interim injunction had been granted, barring his client from assuming the duties of IGP.
De Silva requested that the court expedite the hearing process, citing the ongoing uncertainty surrounding the appointment.
After reviewing the arguments and the circumstances surrounding the case, the five-judge bench, which includes Justices Preethi Padman Surasena, Yasantha Kodagoda, A.H.M.D. Nawaz, Shiran Gunaratne, and Achala Vengappuli, decided to schedule the hearing of the petitions for May 06, 07, and 08.
The petitioners include a range of notable figures and organisations, including the Archbishop of Colombo, His Eminence Malcolm Cardinal Ranjith, and the Young Journalists’ Association, alongside several other individuals.
They assert that the recommendations made by the Constitutional Council to appoint Tennakoon are unlawful, and therefore, the appointment itself is in breach of constitutional principles.
The petitions seek a ruling declaring that Tennakoon’s appointment, made on the basis of those recommendations, violates the law.
The case now moves into its next phase, with the Supreme Court set to examine the legality of the appointment, which has sparked significant public and legal debate.
February 24, Colombo (LNW): An immediate order has been issued for the arrest of all military personnel on awol before completing their required service.
The order has been issued by Secretary to the Ministry of Defence Air Vice Marshal (Retired) Sampath Thuyacontha, asserting that all military deserters who have left their posts before completing their required service will be arrested.
This directive follows growing concerns over recent reports that some soldiers, particularly those with weapons training, have been involved in a rising number of criminal activities.
In a response to a journalist’s query regarding these troubling developments, the Defence Secretary acknowledged the Ministry’s alarm over the issue, stressing that military personnel who desert their duties are often more susceptible to involvement in criminal gangs.
He explained that investigations have shown a concerning trend, with many deserters, having received weapons training, becoming entangled with underworld elements.
“We have seen a significant number of arrests, and we are addressing the situation,” Thuyacontha stated. “This is not just an issue within the forces, but a wider social concern. Those who leave the military prematurely, often without completing their full term of service, have a higher propensity to get involved in illegal activities.”
The Defence Secretary further clarified that soldiers who undergo short-term weapons training are particularly at risk of engaging in criminal behaviour after their departure from the forces.
“These individuals are trained in the use of weapons for a period of one or two years, and when they leave, they are more inclined to turn to criminal activities,” he added.
To combat this, the Ministry has taken decisive action, instructing the military police to intensify efforts to apprehend military deserters.
The Defence Secretary confirmed that these individuals are being actively sought and that measures are in place to facilitate their capture.
The issue of military personnel abandoning their posts has grown into a significant social challenge, according to Thuyacontha.
In addition to addressing this matter, he stressed that the government would not tolerate any political protection for individuals involved in criminal enterprises. Legal actions are being swiftly pursued to tackle these activities head-on.
The Defence Secretary also revealed that an audit of firearms has been conducted, with a substantial number now under the Ministry’s control. This move aims to ensure that illegal weapons are accounted for and that they do not fall into the wrong hands.
During a special press conference on February 22, Thuyacontha further elaborated on the situation, acknowledging that there is a troubling trend of military personnel with weapons training deserting their posts and subsequently becoming involved in criminal gangs or underworld activities.
He assured the public that both the military and the police are fully equipped to track and apprehend these deserters swiftly.
When queried about the involvement of active-duty military personnel in criminal enterprises, Thuyacontha admitted that some soldiers had been found to have connections with criminal groups, often driven by economic hardship or addiction to illegal substances.
He pledged that efforts would be made to identify and arrest any such individuals in the future, reinforcing the Ministry’s commitment to maintaining discipline and integrity within the armed forces.
February 24, Colombo (LNW): The Consumer Affairs Authority (CAA) has recently destroyed nearly 6,800 plastic drinking water bottles that were found to be illegally branded with a forged logo of the Sri Lanka Standards Institute (SLSI).
This action follows a series of raids conducted last October, during which the CAA uncovered a private company based in Pugoda involved in manufacturing water bottles bearing the fake SLSI logo.
The fraudulent products, which were misrepresented as meeting the national standards for quality, prompted legal action against the company.
A case was filed, and the Pugoda Magistrate’s Court subsequently ruled that the company, along with a director and the manager of its affiliated tax-buying company, should each be fined Rs. 300,000 for their involvement in the deceptive practices.
In a further step to ensure public safety and consumer protection, the court recently ordered the destruction of the stock of counterfeit water bottles, which had an estimated market value exceeding Rs. 1 million.
On February 20, the bottles were emptied of their contents, and the empty plastic bottles were sent for recycling in compliance with the court’s directive.
In addition to the financial penalties, the company faces further legal consequences as the CAA has taken steps to prosecute the business under two charges related to misleading consumers.
The firm is accused of making false representations by unlawfully using the SLSI logo, which could have potentially endangered public health by misleading customers into believing the products met the necessary standards.
The CAA continues to prioritise the protection of public welfare by holding companies accountable for any attempts to deceive consumers.
February 24, Colombo (LNW): This month, Hambantota International Port (HIP) initiated a dredging operation to restore its harbour to its original depth.
The maintenance, which began in early February, is expected to last for about two months.
The primary objective is to return the port to its designated depth, thereby ensuring the safety of vessel navigation and the efficient operation of the harbour.
Over time, silt tends to accumulate in harbours, which necessitates regular dredging. HIP’s navigation channel is meant to be 17 metres below sea level, but silt deposition has gradually reduced this depth in certain areas.
To maintain operational safety and efficiency, dredging is required to restore the harbour to its intended specifications, allowing for the safe passage of large vessels. As Capt.
Ravi Jayawickreme, CEO of Hambantota International Port Services (HIPS), explained, this process is essential for the continued safe operation of the port.
Before starting the dredging work, a detailed bathymetric survey was conducted in collaboration with the Sri Lanka Navy’s Hydrography Service.
This survey identified specific areas where silt had accumulated. Following the survey, a tender process was held to select the best-suited contractor for the job.
The dredging operation is being carefully managed, with all necessary environmental permits in place from the Central Environmental Authority, Marine Environmental Protection Authority, and the Coast Conservation and Coastal Resource Management Department.
The dredged material is being dumped 11 nautical miles offshore, ensuring minimal impact on local fishing activities. The Port Control unit is closely monitoring the operation to ensure compliance with safety and environmental standards.
Datta Gunasekara, Chief Specialist Engineering at HIP, noted that while silt accumulation is typical for coastal areas, the port is prioritising the restoration of its declared depths as quickly as possible.
The dredging contractor is using advanced equipment to collect the silt, which is then transferred onto barges for disposal. The dredging schedule is flexible and will be adjusted to accommodate incoming vessels, ensuring their safe navigation.
Environmental considerations are a key aspect of the project, with initial tests confirming that the dredged material is largely sand and mud, without harmful substances.
Once the dredging is completed, another survey will be conducted to confirm the harbour’s depths have been restored.
HIP, which opened in 2010-2011, remains committed to upholding high standards of operational safety, environmental protection, and sustainable development, ensuring its continued role as a vital maritime hub.
