Derby woman Ebony McIntosh, a digital marketing and social media manager, was rushed to hospital in the capital, Colombo, on Saturday after suffering from vomiting, nausea and trouble breathing.
The 24-year-old died alongside German national Nadine Raguse, 26, who was also staying at the Miracle Colombo City hostel.
A room in the hostel had been fumigated to treat bed bugs before the young women fell ill, Sri Lanka police spokesman Buddhika Manatunga told the PA news agency.
A police investigation had been launched, and officers were investigating the possibility that the women were poisoned by noxious pesticides, Mr Manatunga said.
Ms McIntosh’s cause of death had not been identified as a post-mortem examination would take place after her family arrived in Sri Lanka on 10 February, Mr Manatunga said.
The hostel had been closed until this occurred.
A Foreign, Commonwealth & Development Office spokesperson said: We are supporting the family of a British woman who died in Sri Lanka, and are in contact with the local authorities.”
Simone White, a British lawyer who died from suspected methanol poisoning in Laos (Squire Patton Boggs/PA)
On Sunday, British survivor Bethany Clarke spoke for the first time about the incident in Laos which claimed the life of her childhood friend Simone White.
If it looked dodgy, I wouldn’t have drunk it,” Ms Clarke told Australia’s 60 Minutes programme.
We went up to the bar and I watched him pour them out from a glass bottle with a vodka label on it. I knew it would have been a local spirit, I wouldn’t expect it to be an international spirit.”
Slain Sunday Leader Editor Lasantha Wickrematunge’s widow Sonali Samarasinghe is tipped to be appointed as Minister Counsellor at Sri Lanka’s Permanent Mission to the UN in New York, the Daily Mirror learns.
The appointment comes in the wake of the Attorney General taking steps to release three suspects from the charges regarding the murder of Wickrematunge.
The government is apparently miffed by the decision.
Opposition and SJB Leader Sajith Premadasa chaired a meeting with Opposition party leaders yesterday to discuss coordinating future political activities and parliamentary affairs.
During the meeting held at the parliamentary complex Premadasa stressed the need for a united Opposition to strengthen Parliament, support beneficial government initiatives, and oppose harmful policies.
The primary objective of the meeting was to reach a consensus on collective action both inside and outside Parliament.
The Opposition Leader also highlighted the importance of parliamentary committees and agreed to take future action accordingly.
This meeting follows a special discussion held on 29 January between Opposition Leader Sajith Premadasa and Opposition party leaders.
Among those in attendance were Opposition party leaders Gayantha Karunatilleka, J.C. Alawathuwala, Ajith P. Perera, Rishad Bathiudeen, Namal Rajapaksa, Dilith Jayaweera, Dayasiri Jayasekara, Ravi Karunanayake, Jeevan Thondaman, Sivagnanam Shritharan, P. Sathiyalingam, A. Adaikkalanathan, Gajendrakumar Ponnambalam, Rauff Hakeem, Nizam Kariapper, V. Radhakrishnan, Anuradha Jayaratne, D.V. Chanaka, Kader Masthan, and others.
Sri Lanka Podujana Peramuna National Organizer and MP Namal Rajapaksa has called for a government investigation into how NGOs in Sri Lanka have utilized foreign aid.
In a tweet, he urged the government to probe NGOs and other entities that have received funds through the United States Agency for International Development (USAID) and to submit a report to Parliament.
He stated that there have been reports of USAID using its funds to create instability in other countries under the pretext of humanitarian aid. He noted that Sri Lanka has received millions of dollars in funding from USAID in recent years, with over 100 NGOs, politicians, and journalists benefiting from these funds.
USAID has been under scrutiny since former U.S. President Donald Trump suspended foreign aid for three months after taking office. Rajapaksa emphasized the need for a report on USAID-funded projects due to the lack of clear records on the matter.
The government has officially announced the certified prices at which the Paddy Marketing Board (PMB) will purchase paddy from farmers. The announcement was made at a special media briefing today (05) by Agriculture Minister K.D. Lal Kantha and Deputy Minister Namal Karunaratne.
Accordingly, the revised procurement rates are: Nadu paddy at Rs. 120 per kilogram Samba paddy at Rs. 125 per kilogram Keeri Samba paddy at Rs. 132 per kilogram The Minister stated that only dry paddy will be purchased, emphasizing that the decision aims to ensure fair prices for farmers while maintaining market stability. The PMB is set to begin purchases at these rates immediately.
Minister of Health and Mass Media Nalinda Jayatissa stated that the government will prioritize filling urgent vacancies when recruiting graduates into the public service. Responding to questions at the cabinet media briefing today (05), he noted that while figures such as 30,000 or 35,000 have been mentioned, not all graduates will be recruited.
He emphasized that the process will focus on existing vacancies and acknowledged the presence of underutilized graduates in the public sector. A separate committee will be appointed to address this issue and determine the necessary recruitments.
Dr Sudath Gunasekara (SLAS) Former Secretary to Prime Minister Mrs Sirimav Bandaranayaka
I strongly advise the President and his coterie of Ministers and their followers to read ‘The Panakaduwa Tamba Sannasa” by ( (ruled 1055–1110), to understand how our ancient Sinhala Buddhist Kings had treated those who saved this country and the Sinhala nation, before he and his coterie of ignorant followers try to expel Former President Mahinda Rajapaksha from this official residence. Also please don’t forget that it was Mahinda Rajapaksha who saved this country in 2009 from the LTTE who were listed as the most dangerous band of terrorists in the whole world and not you or any other of his predecessor President who miserably failed for 30 years.
Not only the people of this country, but the whole world knows it.
Also please don’t forget that this country had been governed by Sinhala Buddhist Kings on the advice of Buddhist monks for the past 2566 years. That is the long and undisputed legacy that no politician in this country who aspires to rule this country should ever forget.
Furthermore, if you would like to understand, more about the value of the Buddhist concept and the ideals of Governance please read the Introduction to the “Legacy of India” by Lord Marquess of Zetland, the British Governor of Bengal (1917-1922).
Patriotic National Movement (PNM) yesterday (03) urged the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) administration to reveal how it intends to counter the high profile Geneva project meant to undermine Sri Lanka’s unitary status on the basis of unsubstantiated war crimes accusations.
PNM’s Dr. Wasantha Bandara said that the government owed an explanation to the public as the JVP help elect the treacherous Yahapalana administration that backed a US accountability resolution at the Geneva-based HRC, in October, 2015, against one’s own country.
Dr. Bandara said that the war-winning country celebrates its independence today as Western powers relentlessly pursued an anti-Sri Lanka agenda.
Responding to The Island queries, Dr. Bandara said that the crux of the matter is that the country hadn’t been able to reach a consensus on a counter strategy, even 17 years after the eradication of the separatist LTTE group. Dr. Bandara alleged that in spite of nationalistic groups repeatedly urging successive governments to counter lies, none of them bothered, regardless of Lord Naseby providing Sri Lanka with irrefutable evidence to counter trumped-up Geneva accusations.
Now as the President, Minister of Defence and the Commander-in-Chief of the war-winning armed forces, Anura Kumara Dissanayake, was accountable for Sri Lanka’s response, the civil society activist said. The next Geneva sessions are scheduled for February-April 2025.
Dr. Bandara also questioned the failure on the part of the main Opposition to raise this issue, both in and out of Parliament. The PNM spokesperson acknowledged that the Geneva issue hadn’t been addressed during presidential and parliamentary election campaigns. In spite of the next Geneva sessions, just weeks away, no political party at least referred to the issue, Dr. Bandara said, pointing out that the continuing failure to defend the armed forces was an affront, particularly to those who made the supreme sacrifice.
Over 30,000 armed forces officers and men died during the war. Dr. Bandara said that the treacherous course of action, initiated in 2015, continued unabated, though, in 2020, the government announced that it quit the Geneva process. That much-touted announcement didn’t make any difference, Dr. Bandara said, urging the NPP to act without further delay.
The Criminal Investigation Department (CID) yesterday (03) recorded a statement from Additional Director General of Customs, Seevali Arukgoda, regarding the releasing of 323 containers on 18 January, 2025. Arukgoda has been overall in charge of the process that allowed the releasing of unchecked containers, in line with a decision taken by the top management of the Customs, to address worsening congestion at the port.
The CID questioned Arukgoda following a complaint lodged by the Colombo Port-based trade unions over the releasing of containers without subjecting them to scrutiny. The unions have accused Arukgoda, who is also the Customs spokesperson, of releasing the containers.
Arukgoda, who had served Customs for over three decades, declined to comment on the ongoing investigation. It wouldn’t be right for me to speak on the issue for obvious reasons.”
In addition to the CID investigation, the National People’s Power (NPP) government has formed a special committee, headed by Deputy Secretary to the Finance Ministry, Ananda Kithsiri Seneviratne, to inquire into the accusations directed at Arukgoda, sources familiar with the developing situation told The Island.
Sources speculated that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), too, may inquire into the Customs matter.
Responding to queries, sources said that a four-day special operation that had been launched with the agreement of trade unions, on 30 January, led to the clearing of the backlog of containers by Sunday (02). Of the three container yards, namely Grayline i, Grayline ii and Rank Container Terminal (RCT), two had been cleared and there were about 40 containers at one place, sources said, adding that once the inordinate and deliberate delays were addressed the clearing process returned to normal.
According to the Director General, Customs, P.B.S.C. Nonis, the releasing of containers,, sans checks, in terms of what he called risk management principles, had begun in September 2020 in a bid to address congestion.
Against the backdrop of as many as 60 percent of containers, released daily, hadn’t been subjected to physical checks, the examination of remaining 40 percent was delayed and the situation deteriorated to such an extent they, too, were released in batches, Nonis said, adding that this process began on 18 July, last year. Since then the Committee that had been tasked with addressing congestion at the Colombo Port periodically released containers in line with relevant recommendations.
The 323 containers that had been released on 18 January, this year, and was at the centre of controversy, was done on the specific directives/recommendation of a Committee appointed by the incumbent Cabinet-of-Ministers and President Anura Kumara Dissanayake and head of the above-mentioned committee, Minister of Transport, Highways, Ports and Civil Aviation and Leader of the House Bimal Ratnayake.
Nonis declared that 323 containers didn’t include at least one container belonging to Expo Lanka as alleged by various interested parties.
Sources said that Customs had adopted a controversial system, over two years, before Nonis received appointment within days after Parliament elected Ranil Wickremesinghe in late July 2022 to complete President Gotabaya Rajapaksa’s term remainder.
Unions pushed for the removal of Nonis and Arukgoda and suspension of stricter internal mechanisms meant to curb corruption in line with IMF dictates.
On behalf of Customs, Labour and Deputy Minister of Economic Development Prof. Anil Jayantha has tabled a comprehensive report on the issue in Parliament on 25 January.
Political sources said that at the time the Colombo Port unions made bombshell accusations over the releasing of 323 containers, the Opposition hadn’t been aware of the controversial system in place since September 2020.
To say that Vaithilingam Sornalingam alias Colonel Shankar was an important member of the Liberation Tigers of Tamil Eelam (LTTE) is a gross understatement. As laid out by D.B.S. Jeyaraj in an October 2022 article, Col. Shankar pioneered several projects for the movement,” including setting up the LTTE’s Office of Overseas Purchases (OOP), later taken over by Selvarasa Pathmanathan alias KP.
As well as establishing a global communications network for the LTTE, he personally oversaw its first-ever purchase of a trawler, thus becoming the Founder Commander of the LTTE Marine Division, also called the ‘Sea Tigers’. As Commander, he initiated the LTTE Undersea Attack Unit and the LTTE Anti-Aircraft Unit, and was involved in conceptualising and planning what would become ‘Vaanpuligal’ – the Air Tigers. According to Jeyaraj, Shankar was the first member of the LTTE to attain a pilot’s licence.
Col. Shankar was killed on 26 September 2001 by the Army’s Long-Range Reconnaissance Patrol (LRRP) in the Vanni. The LRRP was acting on intelligence provided by a ‘deep cover’ intelligence unit that operated within such LTTE-dominated areas. Col. Shankar had just left a meeting with Velupillai Prabhakaran, possibly the intended target of the claymore attack.
The dismantling of such networks was necessary as part of the requirements for the 2002 Ceasefire Agreement (CFA) negotiated by Ranil Wickremesinghe’s Government. A new book from author and public intellectual Prof. Rajiva Wijesinha captures many such small details, the sum of which presents a disturbing pattern of behaviour that seems to be a recurrent feature of many members of Sri Lanka’s political elite.
Wickremesinghe also presided over a similar trajectory in 2015; a weakening of intelligence networks, the sidelining of experienced agents, breeding a culture of disinterest in matters of national security. This trajectory, coupled with the dysfunction created by competing power centres in a coalition government and underlying administrative inertia, led to the deaths of some 250 people in the 2019 Easter Sunday attacks – a manifestation of the worst possible outcomes of Wickremesinghe’s political wrangling.
A few years prior, Prof. Wijesinha published ‘J.R. Jayewardene’s Racism, Cold War Posturing, and the Indian Debacle,’ which presented a striking analysis of one of Sri Lanka’s most enduring leaders. President Jayewardene was not only prime minister but also Sri Lanka’s first finance minister; indeed he presented the country’s first five budgets. There is no understating his impact on our country’s politics and economy, via the concentration of power within himself through constitutional manoeuvring, resisting political pacts with Tamil leadership, and his use of a referendum.
Victims of history
JR was in some sense a victim of history, captive to the complexities of Sri Lanka’s situation: the Indian dynamic, Sinhala and Tamil nationalism, and revolutionary insurrections.
However, during his periods at the centre of power in Sri Lanka, meaningful efforts at power devolution were ignored; there was an outright refusal to consider even minimal autonomy in the mid-1970s as well as a failure to engage on District Development Councils.
Jayewardene presided over the failure to quell the 1983 pogroms and was made to deny his Government’s alleged complicity in those pogroms, as well as failing to manage the Indo-Lanka relationship and subsequently being strong-armed into the Indo-Lanka Accord. Indeed, the concentration of power in his own self was a key feature of JR’s periods in leadership and it is fascinating that it is precisely JR’s authoritarian streak that is now most admired.
Wickremesinghe and the only other person to stand against him (and defeat him) in a clean leadership contest for the United National Party (UNP), Gamini Dissanayake, were both JR’s proteges and were ever-willing to preside over his triangulations.
Prof. Wijesinha notes in his most recent book that it was Ranil who played a major role in JR’s other plot with regard to the referendum, getting undated letters of resignation from UNP Members of Parliament”. It was Wickremesinghe who distributed these cyclostyled letters of resignation,” later used to enforce ruthless campaigning during the referendum”.
Prof. Wijesinha states that the result was a farce, and the perpetuation of a Parliament that no one considered legitimate, so that over the next few years the country spiralled into excessive violence, in the south as well as in the north”.
Consider this factoid in the context of President Wickremesinghe’s unnecessarily violent crackdown on unarmed protesters at ‘GotaGoGama’ (GGG) on 22 July 2022 and the suppression of dissent that occurred thereafter. The nonsensical detention of bystanders, activists, and YouTubers and the overall harassment of university-linked protest groups were precisely to ensure that no dissent was tolerated.
Devious and obsequious
Consider the various examples of grift that occurred during his brief period in power as President and head of the Cabinet: the delayed cancellation of the Strategic Assets Development Bill, the immunoglobulin scam, the withdrawal of court cases against several politically-connected persons, the Mannar Wind Farm, corruption at the Bureau of Foreign Employment, the VFS scandal, controversy over fertiliser import contracts, etc.
Wickremesinghe also most likely acted in contravention of the Constitution by cancelling or postponing mandated elections, something that also occurred under Prime Minister Wickremesinghe during the ‘Yahapalana’ era.
The smaller details matter, those less appreciated, such as Jayewardene’s failure to reform the 1970’s standardisation policy that lowered entry requirements for Sinhalese students, thus disadvantaging Tamil students. Comparisons to Singapore are now commonplace and, given the divergent trajectories of our economies, it is often noted that Sri Lanka failed to adopt English in its education system at a time when Singapore did so to better integrate with the growing global economy.
While Wickremesinghe is sometimes celebrated for being a progressive Minister of Education, Prof. Wijesinha is much less flattering in this regard, pointing to the senior civil servant Victor Wirasinha being asked to oversee a more equitable distribution of English teachers around the island. While the popular narrative had been that there was a shortage of English teachers, this was in fact not the case; English teachers were regularly using their influence to remain in urban areas instead of some far-flung corner of rural Sri Lanka.
Prof. Wijesinha writes that when Wirasinha developed a scheme and those with influence lobbied the President, the process was stopped and Victor was got rid of. I still remember him sitting in the side verandah at my home, relating the story with some asperity, my first inkling of the devious and obsequious personality behind Ranil’s upright façade.”
Prof. Wijesinha was Sub-Warden of S. Thomas’, having taken up the post just before the last batch permitted to do the Ordinary Level in the English medium took their examination… permitted until 1981 for Burghers and Muslims and those of mixed parentage, but by then there were few of these to take advantage of the provision”.
It was during this period that international schools began, with Prof. Wijesinha invited to help organise and establish such institutions by their promoters. This was not to my taste though I had nothing against international schools and indeed am glad that they have helped our students to better opportunities. But I felt it was also important to extend these opportunities more widely, to those whose parents had no way of affording expensive fees.”
Prof. Wijesinha was part of the lobby, so to say, for introducing English medium education for the lower classes, but since the ministry had put a stop to this, the Warden suggested I consult the Minister. I did so, and was told by Ranil that it was illegal. When I asked him why then he had permitted an international school, he told me that he had not done so and had sent the papers to the Attorney General to prosecute them.”
Of course, English medium international schools have thrived in the past three decades, but Prof. Wijesinha prepared a paper for the Board about how English medium classes could be conducted, with students entering privately for public examinations, but by then neither the Warden nor the Board were interested in productive initiatives”.
According to Prof. Wijesinha, Wickremesinghe consistently blocked English medium education throughout his career, vehemently opposing an English medium programme and directing his Minister of Education to halt such programmes, which the then Minister Karunasena Kodituwakku refused to do.
Prof. Wijesinha believes that the rationale for Wickremesinghe’s indefatigable opposition” to the English Medium are revealing of his general approach to the calculus of politics. Jealousy, pure and simple… that Chandrika had started the programme and a personal hostility” towards Prof. Wijesinha, who was himself a consultant on the project.
Prof. Wijesinha suggests that Wickremesinghe sought to restrict opportunities to his own class, following in the footsteps of his uncle, JR, who, in his early political career, pushed for Sinhala to be the mandatory medium of instruction, thereby limiting English access to only the students of elite families.
Personality cults
The societal impacts and the economic lag created by Sri Lanka’s delayed and muddled adoption of the English medium are difficult to assess. The utilisation of the language issue by elites of all stripes for their political ends led to the disenchantment and disillusionment of large swathes of the country.
This has now transformed into a general distrust of institutions of the State more broadly; if institutions are not trusted they must be placed under the control of those deemed trustworthy, which is how concentrations of power begin, how institutions become dependent on a force of personality, rather than professionals working within a clearly defined system. This is what led to a single family, the Rajapaksas, controlling between 60-70% of the national budget at the peak of their power with hardly any substantive pushback.
In the aftermath of the crash, Wickremesinghe, as President, took on the Minister of Finance portfolio, thereby making himself central to the process of International Monetary Fund (IMF) negotiation.
In such a situation, Sri Lanka should have had an independent finance minister, not the President who was politically exposed and thus had incentives towards political expediency. The IMF noted specifically this practice of the executive president holding the Finance portfolio as an urgent governance deficit.
To this day, President Anura Kumara Dissanayake remains Executive President and Minister of Finance. On a recent episode of a political debate programme, National People’s Power (NPP) National List Member of Parliament Lakmali Hemachandra responded to a query by stating that the President was the most capable and trusted person to take on the Ministry of Finance and denied that this was even a concentration of power.
Politics in the macro has become increasingly more personality centric. American politics has always been so, at least since the famous ‘TV campaign’ of 1960 between John F. Kennedy and Richard Nixon. Both the rise, return, and longevity of President Donald Trump owe much to his personal brand; it is not uncommon now for the Republican Party itself to be referred to as a ‘cult of personality’.
The Trump phenomenon within the Republican Party resulted from the failures of that party whilst in Government; candidate Trump in 2016 was a popular base candidate, and indeed every election cycle, both parties tend to utilise the energy of an insurgent candidate to propel a more establishment-friendly candidate in to the White House: Newt Gingrich in the ‘Republican Revolution’ of 1994 as well as in 2012 as a ‘Tea Party’-aligned firebrand; Ted Cruz in 2016, who, if it were not for Trump, was a close contender for the nomination; Rick Santorum, again from 2012; and Pat Buchanan in the mid 1990s.
Whims and fancies
Economists from varying points on the spectrum have noted that the US most likely did not truly recover from the 2008 financial crisis: Lawrence Summers and his Secular Stagnation Theory; Richard Wolff who noted the divergence between real wage growth and corporate profits; and Michael Hudson on the ‘Rentier Economy,’ the State bailing out the shareholders of large corporations.
Economist Nouriel Roubini has warned that the US recovery was partly the result of artificial asset bubbles, unsustainable debt, and low interest rates, not investments in industry or infrastructure or any other productivity gains. The NPP victory was the result of the failure of mainstream parties. Trump’s victory, while under certain unique circumstances, fuels this idea that mainstream political solutions are no longer viable, with societal issues such as housing and rent, healthcare, personal debt, care-giving, etc. becoming more pronounced and urgent.
In Sri Lanka’s case, the failures of both the Centre-Right UNP and Centre-Left Sri Lanka Freedom Party (SLFP) have led to different formations which have an anti-establishment quality.
Meanwhile, the failure of both breakaways, the Samagi Jana Balawegaya (SJB) and Sri Lanka Podujana Peramuna (SLPP), has further created and/or facilitated the shift towards the NPP, a party that was supposed to be a Left-progressive movement, geared towards transparency and governance but also with a pledge to fundamentally alter the economic equation and structure of our economy.
There has been much criticism of the new Government, this column included, with the caveat that it requires the necessary time and space to implement its manifesto. Any failure on the part of the NPP to deliver on that winning manifesto and satisfy its mandate leaves it vulnerable to the next cult of personality.
As Prof. Wijesinha notes, the failures of JR to mitigate the worst impacts of political and ethnic divisions of the 1970s and ’80s and Wickremesinghe’s inability to manage political coalitions have all led to wild swings in our politics.
Perhaps the NPP will eventually find and utilise its compass of political economy; if it does not, if it insists on simply riding the coat-tails of its charismatic and popular leader, without taking the difficult decisions at the right time, the pendulum of Sri Lankan politics will swing once again.
If it does swing to a more extreme position on the Right of the spectrum, Sri Lanka, its economy, and governmental administration might once again find itself in the clutches of some kind of personality cult, generating yet another cycle of trying to negotiate effective policy in spite of personal political priorities.
(The writer has 15 years of experience in the financial and corporate sectors after completing a Degree in Accounting and Finance at the University of Kent [UK] and also holds a Master’s in International Relations from the University of Colombo. He is a media presenter, resource person, political commentator, and foreign affairs analyst. He is also a member of the Working Committee of the Samagi Jana Balawegaya [SJB]. He can be contacted via email: kusumw@gmail.com and X: @kusumw)
By Dirk Willem te Velde and Ganeshan Wignaraja Courtesy The Morning
Sri Lanka’s experience offers valuable lessons for middle-income countries grappling with post-Covid debt distress. While the economy showed signs of stabilisation in mid-January – bolstered by positive growth, low inflation, a boom in tourism, and a bullish stock market – the challenges ahead are far from over.
The country finds itself on the precipice of both opportunity and risk, and it is crucial that the National People’s Power (NPP) Government charts a new path towards inclusive and transformative growth that ensures debt sustainability, avoids future crises, and delivers for all Sri Lankans.
To address this critical need, Overseas Development Institute (ODI) Global has initiated a study group with eminent Sri Lankan economic thinkers to develop a new growth plan for the country. This exercise builds on our co-edited essay series, ‘Sri Lanka: From Debt Default to Transformative Growth,’ which presents 27 pragmatic policy proposals drawing on insights by leading Sri Lankan and international experts.
This topic is a priority because the NPP Government, led by President Anura Kumara Dissanayake, entered office in late 2024 at a pivotal moment. The country is emerging from its worst post-independence economic crisis (2022-2023), which was triggered by a default on external debt obligations in April 2022.
The default represents a development setback for Sri Lanka, which was often cited as a ‘basic needs’ success story as early as the 1970s despite being a poor country.
The causes of this crisis are complex and widely debated. Key factors include a long history of fiscal and current account deficits, acute economic mismanagement during 2019-2022 (locally known as ‘homegrown solutions’), commercial borrowing from China’s policy banks for a plethora of low-return infrastructure projects (e.g., Hambantota Port and Mattala Airport in southern Sri Lanka), and external shocks such as the fallout from the 2019 Easter attacks, the Covid-19 pandemic, and the Russia-Ukraine crisis.
President Dissanayake and the NPP campaigned on a platform of compassionate and corruption-free governance.
Remarkable economic stabilisation, but risks remain
Sri Lanka’s recent economic outlook offers reasons for cautious optimism. Thanks to prudent monetary and financial stability policies by the Central Bank of Sri Lanka (CBSL), a $ 3 billion four-year International Monetary Fund (IMF) programme, and $ 4 billion of Indian financial assistance, the economy appears to have stabilised after severe macroeconomic turbulence.
A $ 17.5 billion debt restructuring deal with private bondholders and China has provided much-needed breathing room, and a resurgence in tourism has boosted foreign exchange reserves.
To his credit, the President has committed to the IMF programme and the debt restructuring process, but with increased social spending to reduce high poverty, both agreed to by his predecessor.
In this environment, the new Government has inherited a stabilising economy. The latest World Bank growth forecasts point to growth at 4.4% in 2024 though slowing slightly to 3.5% in 2025. However, the road ahead is still fraught with uncertainty. The best way to overcome this uncertainty is to have a robust growth plan that addresses potential risks.
While the economic outlook is positive, there are looming risks that the Government must tackle head-on. Public debt levels are projected to remain high (over 100% of Gross Domestic Product [GDP] in 2028 after the end of the current IMF programme) with notable debt servicing needs despite the restructuring deal with private and official creditors, and there is a risk of significant wage demands from public sector trade unions concerned about the cost of living.
Another pressing concern is the outflow of skilled professionals. In 2022 alone, an estimated 300,000 individuals, including IT, banking, marketing, and medical professionals, migrated seeking better opportunities abroad. This brain drain poses a serious challenge for both business and governance, as the country faces a growing gap in the talent pool needed to propel growth.
Rather than putting barriers to outward migration, creating an environment that encourages skilled professionals to stay is crucial. This requires a growth plan that incentivises the use of their skills, provides competitive salaries and benefits, and fosters a stable and promising economic future.
Key ingredients and policies of a growth plan
A successful growth plan requires considering what are likely high-growth sectors and supporting them. There are several candidates in the country’s evolving comparative advantage, such as niche manufacturing (high-value textiles, auto parts, boat building, and electronic components), ICT and the digital economy, and tourism.
Tourism, in particular, presents a quick win for the new Government. It has long been a critical sector for Sri Lanka and continues to show a strong post-crisis recovery. With over two million tourists visiting the country in 2024 – a 38% increase over 2023 – tourism offers significant potential to boost foreign exchange reserves and spur growth.
However, the Government must do more to ensure that tourism is sustainable and benefits communities beyond Colombo. Better marketing of Sri Lanka as a multicultural destination, coupled with targeted development of less-visited regions such as the north and east of the country, and support for small businesses linked to tourism activities, such as small hotels, restaurants, and wellness products, are essential and will help create a more balanced and decentralised tourism industry. Furthermore, addressing the recent wave of gang-related violence is also vital to ensure the safety and security of tourists.
A growth plan needs to further consider which domestic and international policies may support sectoral growth. Fiscal sustainability remains one of the most contentious issues facing the new Government.
To date, there has been very little attention to the growth and development impacts of fiscal multipliers in Sri Lanka (i.e. active targeted fiscal policies that support growth rather than just saying fiscal prudence).
This is an important area for research and policy action. While revenues have increased, rationalising Government spending remains a priority, largely due to the State’s expansive role in the economy.
While ruling out privatisation, the Government plans to improve the management of State-Owned Enterprises (SOEs). However, reconsidering the privatisation or restructuring of some of the larger loss-making SOEs such as SriLankan Airlines and the Ceylon Petroleum Corporation may be necessary as their continued drain on public funds threatens long-term fiscal stability.
With the support of international financial institutions, the Government should pursue a strategy that right-sizes the State, encourages private sector growth, and ensures fiscal health in the coming years.
Appropriate monetary and financial policies are also crucial ingredients of a growth plan. The CBSL Act of 2023 provides a framework for flexible inflation targeting and Central Bank independence, enabling the bank to refuse monetary financing and encourage better fiscal discipline. However, alongside this, the financial sector must be organised and incentivised to support high-growth sectors and small businesses.
Further research is needed, drawing on global good practices, to determine whether the existing banking and non-bank financial system is sufficient or if a new development finance institution is required. Implementing global good practices on methodologies for regular stress testing of banks is also crucial to determine whether banks have sufficient capital to withstand negative economic shocks.
Sri Lanka’s international economic policies are equally important. The inauguration of President Donald Trump and his promise of tariff-raising policies could affect the geopolitics of the Indo-Pacific. Strengthening economic ties with neighbouring India is vital to ensure Sri Lanka benefits from investments, technology transfer, market access, and collaborations from this fast-growing nation.
President Dissanayake’s recent visit to India offers a promising foundation for stronger bilateral relations. The focus should now be on making concrete progress in areas such as Business-to-Business (B2B) links in high-growth sectors, cross-border energy projects, an Indian private sector investment in the West Container Terminal of the Colombo Port, a digital ID scheme, and the deeper bilateral free trade agreement under negotiation.
Japan’s relationship with smaller Association of Southeast Asian Nations (ASEAN) countries, which has fostered regional industrial development and cooperation, may offer a valuable ‘flying geese type’ model for such efforts. This has led to, among other things, the increase of global supply chains and jobs in Southeast Asia and a framework for regional trade and monetary cooperation.
Sri Lanka’s strategic geographical location, its deep water ports, skilled labour, and arguably less red tape regulations are some of its comparative advantages for improved trade and investment ties with India.
Building capacity for implementing growth policy
We have known the importance of some policies for some time. However, the challenge lies in implementation due to weak State capacity and political incentives. One constraint is the lack of good oversight, as the Government has a Parliament with little experience.
Of the 225 Members of Parliament (MPs), about 150 are untested first-time representatives, mostly from the NPP, which raises concerns about the legislative and technical capacity needed to enact the economic reforms Sri Lanka so desperately needs.
In addition, the Government must prioritise better public sector service delivery, retain key talent within the State sector, and create policies that encourage the development of expertise in governance and public administration.
Improved State planning for undertaking market-oriented public policies, digitisation of public services, training MPs in the legislative process, and understanding the complexities of economic reforms are also crucial. Further, establishing a top-quality public policy school to train civil servants and MPs would be a valuable addition to Sri Lanka’s university system.
Sri Lanka stands at a crossroads and the world is watching. While the new Government has made a reasonable start, the economic challenges ahead are significant. Developing a comprehensive, inclusive, and transformative growth plan that addresses immediate risks and seizes long-term opportunities is essential.
This plan should identify sectors that are going to drive transformative growth in the future, which domestic macroeconomic policies are supportive of these sectors, and effective trade and investment policies.
It must also prioritise building State capacity for how these economic transformation policies are going to be effectively implemented. Navigating these choppy waters will require pragmatic leadership, bold policy decisions, a clear vision for the country’s future prosperity, and donor support.
(Dr. te Velde is the Director of the International Economic Development Group at ODI Global in the UK. Dr. Wignaraja is Visiting Senior Fellow at ODI Global and a former Executive Director of Sri Lanka’s Foreign Ministry think tank)
Dissanayake, who was elected president in a narrow win in September’s presidential election, created history for his National People’s Power (NPP) party in the parliamentary election held in November last year
PTI Published 04.02.25, 02:39 PM
Representational imagefile picture
President Anura Kumara Dissanayake on Tuesday said that Sri Lanka must work in unison to achieve economic freedom rather than yield to vulnerabilities within the global economic system.
Addressing the 77th Independence Day celebrations of the island nation, Dissanayake said, “Collectively, we must persist in our struggle for freedom on behalf of this motherland.” “To secure our economic freedom, rather than succumbing to weakness in the global economic system and being overwhelmed by its every fluctuation, we must unite in our efforts for this motherland,” said the 56-year-old president.
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In keeping with his government’s policy of minimizing state expenditures as the island nation struggles to emerge from the 2022 economic crisis, this year’s celebrations saw a reduction in the usual pomp and pageantry.
Only 1,800 military personnel were deployed in the parade, a reduction of over 1,500 personnel from last year. From last year’s 19 aircraft, this morning’s celebrations featured only three aircraft.
Dissanayake, who was elected president in a narrow win in September’s presidential election, created history for his National People’s Power (NPP) party in the parliamentary election held in November last year.
His party won two-thirds of control in the 225-member assembly and more significantly, overwhelming support in the Tamil regions. The Tamils had eschewed support for the main Sinhala community political parties in Sri Lanka’s political history.
This was the first time that a government had won two-thirds control or over 150 seats in a parliamentary election held since 1989.
Dissanayake inherited an economy battered by the 2022 crisis. He has completed the long-drawn-out-debt restructuring of the island’s external debt -– a process all but completed by his predecessor Ranil Wickremesinghe before last year’s presidential election. The island nation, in April 2022, declared its first-ever sovereign default since gaining independence from Britain in 1948.
Ambassador of Sri Lanka to Việt Nam Poshitha Perera wrote to Việt Nam News on the 77th Anniversary of the Independence Day of Sri Lanka on February 4, 2025.
Sri Lanka, often called the ‘Pearl of the Indian Ocean’, is a destination that captivates travellers and investors alike. With its stunning natural landscapes, rich cultural heritage and dynamic economy, this tropical paradise offers an unparalleled blend of tourism and investment opportunities, making it a must-visit location for the global community.
The island nation boasts a history spanning over 2,500 years, woven into its culture, architecture and traditions. Travellers can immerse themselves in the majesty of Sri Lanka’s ancient cities such as Anuradhapura, Polonnaruwa and Dambulla, marvel at the breathtaking Sigiriya Rock Fortress and pay homage at the sacred Temple of the Tooth Relic in Kandy. These timeless sites, recognised as UNESCO World Heritage landmarks, are a testament to the country’s deep-rooted heritage and serve as gateways to understanding the island’s illustrious past.
A visit by ambassador Poshitha Perera to Bái Đính Pagoda in Ninh Bình Province on September 28, 2024. Photo courtesy of the Embassy
Sri Lanka and Việt Nam share a profound religious connection, with Buddhism serving as a cultural and spiritual bridge between the two nations. Both countries honour their Buddhist heritage through traditions, temples and festivals that reflect shared values of peace and compassion.
The sacred Sri Maha Bodhi Tree in Anuradhapura, brought to Sri Lanka in the 3rd century BCE from the Bodhi Tree under which Shakyamuni Buddha attained enlightenment, is cherished as a national treasure by the Sri Lankan people. As a symbol of profound spiritual and cultural significance, it continues to inspire reverence worldwide.
In a gesture of shared heritage, two saplings from the sacred Sri Maha Bodhi Tree were gifted to Việt Nam and now thrive in the Bái Đính and Tam Chúc pagodas in Ninh Bình Province. Further strengthening this bond, the Central Cultural Fund of Sri Lanka is providing technical expertise to develop the Bodhi Complex at these sites, integrating state-of-the-art Sri Lankan architectural elements. This collaboration reflects the deep-rooted spiritual connection and shared commitment to preserving Buddhist heritage between Sri Lanka and Việt Nam.
This year marks a momentous milestone as Sri Lanka and Việt Nam celebrate 55 years of diplomatic relations, underscoring the enduring friendship and cooperation between the two nations.
Beyond its historical and cultural allure, Sri Lanka is a treasure trove of natural beauty. The turquoise waters of Mirissa, Unawatuna, Tangalle and Pasikuda beaches are ideal for relaxation, while the rolling tea plantations of Nuwara Eliya and Ella offer serene escapes into the misty highlands.
Wildlife enthusiasts can embark on safaris in Yala and Udawalawe National Parks, encountering elephants, leopards and a plethora of exotic bird species. Adventurers can explore the island’s surfing hotspots, thrilling hiking trails and whale-watching excursions. For those seeking tranquility and rejuvenation, Sri Lanka’s ancient indigenous wellness practices provide a holistic retreat.
General Party Secretary Tô Lâm talks to Ambassador Poshitha Perera at his presentation of credentials on September 17, 2024. VOV Photo
Sri Lanka is not just a destination for tourists. The island is rapidly emerging as a hub for global investors, offering a wealth of opportunities in diverse sectors.
Tourism itself is a fertile ground for investment, with increasing demand for eco-friendly resorts, boutique hotels and luxury experiences. The agriculture and food processing sector is another promising area, with Sri Lanka’s globally acclaimed Ceylon tea, spices and organic produce paving the way for innovative agro-processing ventures.
Sri Lanka is also encouraging investment in electric vehicle (EV) manufacturing as part of its commitment to sustainable development and a greener future. By emphasising renewable energy and eco-friendly initiatives, the country is fostering an environment conducive to businesses interested in establishing operations in EV production and related technologies.
The government’s ambitious infrastructure projects, including port expansions and highway developments, reflect its vision of becoming a regional logistics hub. Additionally, Sri Lanka’s renewable energy sector holds immense potential, with a strong focus on solar, wind and hydropower to achieve sustainability goals. The island’s skilled labour force further enhances its appeal as an investment destination.
Apart from these opportunities, Sri Lanka seeks to strengthen collaborations with Việt Nam in various sectors, including information technology, industrial parks, agriculture, pharmaceuticals and mixed development projects, such as the transformative Port City initiative. These collaborative efforts promise mutual growth and opportunities, reinforcing the longstanding partnership between the two nations.
Sri Lanka’s unique charm lies in its ability to offer something for everyone. Whether you are a traveller yearning for serene beaches, cultural exploration and thrilling adventures, or an investor looking for dynamic opportunities in a strategic location, Sri Lanka welcomes you with open arms.
The Sri Lanka Embassy in Hà Nội warmly invites Vietnamese travellers and business leaders to discover the unparalleled beauty and boundless opportunities of our island paradise. For those interested in exploring investment or business opportunities, we encourage you to reach out to us at slemb.hanoi@mfa.gov.lk. It would be our pleasure to guide you through the abundant prospects Sri Lanka has to offer. VNS
During celebrations marking the 77th anniversary of the end of British colonial rule, Card Ranjith called for the current presidential system to be scrapped since it has fostered a culture of fear” and lawlessness”.
Colombo (AsiaNews) – Sri Lanka today marked the 77th anniversary of its independence from British colonial rule.
On this occasion, President Anura Kumara Dissanayake, speaking in Independence Square, urged his fellow citizens to focus on building a brighter future rather than looking back at past challenges, inspired by the collective hope and expectation shared by all Sri Lankans, whether from the north or the south, to unite in the quest for a modern, progressive nation”.
The president called for a joint national effort to achieve economic independence, reminding his compatriots that this must be pursued without falling prey to external pressures from the global economy.
Citing religious leaders, activists, media workers and, especially, ordinary citizens, Dissanayake said that everyone is linked by an undeniable responsibility to create a world that reflects true humanity, in which everyone can experience and nurture kindness, respect and mutual understanding.
The Catholic Church also marked Independence Day by celebrating Masses of thanksgiving in all the dioceses. The Archbishop of Colombo, Card Malcolm Ranjith, led a service this morning at the Church of All Saints in Borella.
In his address, the cardinal called on the president and the government to repeal the current Constitution which, by giving the head of state unrestrained powers, turned into war national conflicts that could otherwise be resolved peacefully.
The dictatorial constitution has been at the root of our nation’s crises,” Card Ranjith said. It has dealt a fatal blow to democracy, fostered a culture of fear and bloodshed, and allowed lawlessness to thrive.”
For this reason, it must be repealed immediately and replaced with a new constitution that unites all citizens as children of one mother, ensuring justice, transparency, and a renewed social and cultural foundation.”
