Category: Daily Financial Times

Transparency International Sri Lanka (TISL), the Civil Society Organisations (CSOs) and the other activists have expressed serious concern over the continued failure of the President to ensure the timely appointment of the Auditor General, leaving Sri Lanka’s supreme audit institution without stable leadership for an extended period of time.

‘This delay comes at a moment when public trust, financial accountability, and robust oversight are not only constitutionally required, but urgently needed,’ said a statement by TISL, CSOs and activists.

The statement also said the following.

The office of the Auditor General is a cornerstone of democratic governance. As Sri Lanka’s Supreme Audit Institution, it plays a vital role in safeguarding public resources by independently auditing the use, management, and performance of public funds. A strong and independent Auditor General enables Parliament and the public to scrutinise Government expenditure, identify irregularities, prevent misuse of funds, and ensure that those entrusted with public resources are held to account. Without a permanently appointed Auditor General, the effectiveness, authority, and independence of the entire public audit system are weakened – creating space for inefficiency, mismanagement, and corruption.

This institutional vacuum is particularly alarming in the context of the multiple crises Sri Lanka continues to face. The country is currently responding to the impacts of Cyclone Ditwah, which has triggered emergency relief efforts, humanitarian assistance, and the mobilisation of significant public and external funds. Disaster response and recovery inevitably involve rapid procurement, emergency spending, and complex fund flows across multiple State agencies. In such circumstances, strong oversight mechanisms are indispensable to ensure that resources are allocated transparently, utilised efficiently, and reach affected communities without delay or diversion. The absence of a permanently appointed Auditor General undermines confidence in the proper financial management, disbursement, and monitoring of disaster-related funds at a time when public accountability is most critical.

Sri Lanka’s Constitution recognises the Auditor General as an independent authority, insulated from executive interference precisely to ensure credible oversight of public finance. However, since the retirement of the former Auditor General in April 2025, the country has witnessed a prolonged reliance on short-term acting appointments. This pattern of repeated temporary extensions, rather than a timely permanent appointment, risks eroding the institutional independence of the National Audit Office and weakening its ability to exercise oversight without fear or favour. Acting appointments, by their very nature, create uncertainty and can compromise the perception, and independence that is essential for effective audit functions.

This failure is further compounded by the fact that the country is at the end of the financial year – a critical period when public institutions are required to finalise accounts and submit their annual audit reports. The Auditor General plays a central role in guiding, reviewing, and validating this process, ensuring consistency, credibility, and accountability across the public sector. In the absence of a permanently appointed Auditor General, the entire audit cycle risks becoming fragmented and weakened, disrupting oversight and undermining the integrity of public financial accountability. This breakdown of this stage of the accountability chain creates serious vulnerabilities in the oversight of public institutions and public spending, precisely at a moment when fiscal discipline, transparency, and public confidence are most needed.

The sequence of events following the retirement of the previous Auditor General points to a broader political inertia and a governance failure. Despite the clear constitutional importance of the role, the appointment process has remained protracted and opaque, raising serious questions about political will and commitment to accountability. This situation places additional responsibility on the Constitutional Council, which is mandated to act as a safeguard against politicisation and to ensure that key independent offices are filled through transparent, merit-based processes.

In this regard, TISL, CSOs and the other activists mentioned below emphasis the urgent need for clear, publicly articulated guidelines and criteria governing appointments to constitutionally independent offices such as the Auditor General. Transparent criteria, grounded in professional competence, seniority, integrity, and demonstrated independence, are essential to protect the credibility of the appointment process and to maintain public confidence in oversight institutions. Clear standards also strengthen the Constitutional Council’s ability to discharge its mandate effectively, resist undue influence, and ensure that appointments serve the public interest.

The prolonged failure to appoint the Auditor General is not a procedural oversight; it is a substantive governance lapse with far-reaching implications. At a time of economic fragility, fiscal constraint, and heightened disaster vulnerability, Sri Lanka cannot afford weakened or compromised audit oversight. Strong public financial management, effective anti-corruption safeguards, and accountable crisis response all depend on a fully empowered and independent supreme audit institution.

TISL, the CSOs and the other activists mentioned below call on the President and all relevant authorities to act without further delay to ensure the appointment of a suitably qualified, independent Auditor General through a transparent and constitutionally sound process. Restoring the full functioning of this critical institution is essential to upholding democratic accountability, protecting public resources, and rebuilding public trust in state institutions – especially at a time when the country can least afford their erosion.

The statement was endorsed by: Ambitious Institution for Moral Generation; Asia Lanka Social Development Cooperation; Association of War Affected Women; Centre for Human Rights and Development; Centre for Policy Alternatives; Child Vision Sri Lanka – Puttalam; Eastern Social Development Foundation; Human Rights Law Chambers; Institute of Social Development; Mannar Women’s Development Federation; Muslim Women Development Trust; Rural Development Foundation; Sisterhood initiative and alliance for minorities; Transparency International Sri Lanka; Woman Lanka Network; Women and Media Collective; Women’s Action Network; Abdul Majeed Mohammed Ziyad; Ambika Satkunanathan; B. Gowthaman; Ermiza Tegal; Peter Rezel; Ruki Fernando; Sandun Thudugala; Sheila Richards; Sudaraka Arthanayake; and Dr. Vinya Ariyaratne.

There are a few Government members who are a liability to President Anura Kumara Dissanayake and the National People’s Power (NPP). Among them are MP Asoka Ranwala, the NPP’s first choice for speaker who had to resign in disgrace over a bogus education qualification. He has since been involved in a road accident adding to the Government’s woes.

The other is NPP’s Kaduwela Mayor Ranjan Jayalal who has faced serious allegations of threatening political opponents and State officials. The latest concerns Jayalal threating an Attorney-at-Law. This time the Bar Association of Sri Lanka (BASL) has stepped in to strongly condemn his conduct, alleging that Jayalal had obstructed and hindered an Attorney-at-Law while representing an Animal Welfare Association at an inquiry conducted by the Mayor.

BASL said the Attorney-at-Law had been representing an Animal Welfare Association when the incident occurred. The BASL viewed the Mayor’s conduct as a serious interference with the professional independence and duties of an Attorney-at-Law.

The Association made reference to audio recordings circulating on social media and reports carried by the media, in which the Mayor is allegedly heard claiming to be an ‘Unofficial Magistrate’ and implying that he was exercising judicial authority. BASL stressed that such a claim is wholly erroneous and misconceived, as the Mayor was not acting under the authority of any Magistrate nor exercising any judicial power at the time of the incident.

For many NPP MPs and their local authorities’ members, it’s their first time serving in an elected office. As has happened in the past, when there is a swing in favour of one Government, there is a tidal wave of support with which comes in many unsuitable and unsavoury characters into public office. They neither understand the seriousness of the role of an elected official nor realise that they are no longer trade unionists who can go around bellowing slogans as they were used to doing.

In the case of Ranwala, even senior ministers in the Government have been forced to defend him after the recent accident, some of them vouching for his sobriety and defending the failure of the police to do a breathalyser test immediately.

This is reminiscent of what most other political parties in power did in the past. They bent backward to defend their party members and failed to address the very serious breaches in law that broke public trust and the end result was their dismal performance in the 2024 elections. The NPP rode to power with the pledge to be unlike the others, to be accountable to the public and often repeat the words ‘everyone is equal before the law’. But now going by some of the incidents involving those in the NPP, there is an unwillingness to admit Government members have acted above the law and are more reminiscent of the thuggish politicians of the past.

It’s a fragile relationship that holds voters and their elected officials together and it is based on trust. The President has so far managed to keep voters happy but it’s not easy to say the same of some others in Government. The responsibility is a collective one and if the Government wants to keep the public on its side, it must do so with deeds, not just words. Putting political opponents behind bars, persecuting them etc., will go to only to some extent to keep voters’ content. It won’t be long before they question the Government’s failure to act against its own.

Parliament yesterday approved the 2026 Rs. 500 billion supplementary estimate for post-Ditwah relief and recovery, concluding a two-day special sitting for that purpose.

The estimate was uncontested and passed without a vote in the 225-member assembly.

The previous day, the Committee on Public Finance (CoPF) approved the Rs. 500 billion supplementary estimate, the Parliamentary Secretariat said.

The approval was granted at a meeting of the CoPF chaired by Main Opposition MP Dr. Harsha de Silva, following submissions by officials from the Finance Ministry.

Officials told the Committee that although the Appropriation Bill for 2026 was passed by Parliament on 5 December, the recent disaster situation had created the need to mobilise additional resources beyond the amounts provided for in the Budget.

Accordingly, a supplementary sum of Rs. 500 billion has been proposed to support affected communities, restore livelihoods and rehabilitate damaged infrastructure.

The allocation comprises Rs. 100 billion for the renovation of houses destroyed by the disaster, Rs. 250 billion for the restoration and rehabilitation of damaged infrastructure, and Rs. 150 billion to support the rebuilding of livelihoods and the return to normal living conditions.

During the debates, Opposition lawmakers questioned the adequacy of the supplementary estimate and credibility of initial impact assessments. They points out that while the Government is allocating Rs. 250 billion for post-Ditwah infrastructure repairs to bridges, roads, railways, irrigation systems, schools and hospitals, the Road Development Authority also has estimated Rs. 190 billion in damages to road networks. On Wednesday, making a point for Government to consider issuing infrastructure bonds, SEC Chairman Senior Prof. Hareendra Dissabandara said he had learnt that repairing damages to the railway network alone required Rs. 200 billion.

CoPF observed that the supplementary estimate would result in primary expenditure for 2026 exceeding the 13% of GDP ceiling imposed by the Public Finance Management (PFM) Act by about 1.5% of GDP.

Officials explained that under Section 16 of the PFM Act, such a breach is permitted in cases of unforeseen and unavoidable circumstances, including natural disasters and national crises. In line with Sections 16 and 26 of the Act, the Ministry of Finance has submitted the required explanatory documents, including an updated Medium-Term Fiscal Framework (MTFF).

When questioned on compliance with the PFM Act, officials reiterated that while the primary expenditure ceiling is mandatory, statutory exemptions apply in disaster-related situations.

The Committee also examined beneficiary selection and implementation mechanisms. Officials said the National Building Research Organisation (NBRO) has identified around 15,000 houses requiring attention, noting that a related program has been in place since 2017, though progress has been slow.

They further stated that the 2026 Budget has allocated Rs. 5 trillion to construct approximately 3,000 houses already identified, with additional funds to be provided for restoration and relocation.

CoPF members stressed the need for accurate data and a clear implementation plan to ensure assistance reaches households directly affected by the disaster.

The Committee also urged the Government to formally establish the Rebuilding Sri Lanka Fund as a statutory fund with Parliamentary approval, to strengthen accountability and transparency in the use of disaster-related funds.

Following deliberations, the Committee approved the supplementary estimate of Rs. 500 billion.

Shield Restraint Systems Ltd., has officially opened its cutting-edge manufacturing facility at the Export Processing Zone, Wathupitiwala, Nittambuwa, marking a significant milestone in Sri Lanka’s industrial development and foreign investment landscape.

The event was attended by senior executives from the United States, including TransDigm Inc., Executive Vice President Kevin McHenry and Shield Restraint Systems President Dennis Pursel along with Shield’s executive team. Their presence demonstrated the company’s commitment to expanding manufacturing operations and international partnerships.

Key Sri Lankan officials were also present, including BOI Chairman Arjuna Herath, Director General Renuka Weerakone, and other BOI executives. Representatives from the US Department of Commerce and US Embassy in Sri Lanka attended as well, emphasising the strong economic relationship between the two countries.

Shield Restraint Systems (Pvt) Ltd represents the Group’s latest strategic investment in the country, manufacturing a comprehensive range of safety products for applications spanning child safety seats, commercial vehicles, construction and agricultural equipment, and amusement park rides. Shield has manufacturing facilities in Elkhart, Indiana, and Kunshan, China, and the new Sri Lankan facility marks Shield’s strategic expansion into South Asia.

The USD 8.5 million project comprises of a state-of-the-art 100,000 sq ft manufacturing facility that will serve as a cornerstone for the company’s global operations. While the facility opens today at its 10% capacity, the full-scale operation is projected to create 500 job opportunities and generate USD 50 million in annual revenue. The facility’s operations will generate substantial economic benefits for Sri Lanka, including significant tax contributions that will support local economy. The project represents more than immediate job creation but also signals long-term commitment to Sri Lanka’s economic growth.

The current geopolitical landscape has created unique opportunities while the established success and the proven track record of the sister company AmSafe Bridport Ltd., provided Shield with useful insights into the country’s manufacturing capabilities and business environment. Also, the country’s logistics infrastructure, including excellent shipping routes and accessible supply chain networks, provides a distinctive advantage for serving global markets. The demonstrated manufacturing resilience, maintaining operations and quality standards even under extreme condition and the highly skilled and willing labour force made Sri Lanka the best choice for Shield’s move.

AmSafe Sri Lanka General Manager Chandani Ekanayake who was instrumental in bringing this investment to Sri Lanka stated, ‘This project represents years of establishing Sri Lanka as a profitable investment hub with our business owners. What we have realised through the journey in establishing Shield in Sri Lanka is that we have to anticipate significant improvements in the efficiency and transparency of administrative processes. The long-awaited policy reforms should focus on establishing a true one-stop service that encourages investors to operate with confidence.

We look forward to working with authorities who adopt broader thinking patterns, who view the bigger picture and embrace a pragmatic solution-based approach. Only through such collaboration can Sri Lanka realise its full potential as a genuinely competitive and attractive destination for global investment.’

Ekanayake further went on to say that, ‘Establishing this facility is just the beginning of our investment journey in Sri Lanka. We’re currently looking at future opportunities which could exceed $ 17 million in investment value. We remain deeply committed to contributing to the nation’s economic progress through sustainable, long-term partnerships that create meaningful opportunities for local communities and strengthen Sri Lanka’s position as a hub for global investment.’

GovPay, the State’s Digital Payment Platform, has concluded the year 2025 by surpassing Rs. 2 billion in total digital transaction value, marking a major milestone in the country’s digital transformation journey.

Notably, GovPay doubled its collections from Rs. 1 billion to Rs. 2 billion in just 45 days, reflecting rapid adoption, growing public trust, and strong institutional uptake across the public sector.

Since its official launch on 07 February 2025, GovPay has processed over 69,000 digital transactions, enabling payments for 3,372 Government services across 215 Government institutions. This accelerated growth underscores the increasing reliance on secure, convenient, and transparent digital payment mechanisms by both citizens and Government institutions.

Implemented under the strategic leadership of the Ministry of Digital Economy, the Information Communication Technology Agency of Sri Lanka (ICTA) in collaboration with LankaPay, GovPay has emerged as a key pillar of Sri Lanka’s national digital public infrastructure. The platform plays a critical role in advancing financial inclusion, improving service efficiency, and strengthening transparency in public service delivery.

A key milestone in 2025 was the launch of the Online Traffic Fine Payment System through GovPay on 10 April 2025. Since its introduction, the system has facilitated over 50,000 digital traffic fine payments, generating more than Rs. 66 million in revenue.

The service is currently operational across the Western, Southern, Northern, North Western, and North Central Provinces, including the Southern, Katunayake, and Central Expressways. While the island wide rollout planned for December 2025 was postponed due to adverse weather conditions and disaster-related challenges, ICTA, in coordination with the Sri Lanka Police and with the support of LankaPay, has agreed to complete the nationwide rollout in January 2026, with a landmark launch in the Central Province.

GovPay has continued to expand its reach across local authorities, including Divisional Secretariats, Municipal Councils, Urban Councils, and Pradeshiya Sabhas, significantly enhancing access to Government services in citizens’ day-to-day activities. The platform has enabled digital transactions for all local authorities in the Northern Province and all Divisional Secretariats in the Southern Province, with a national target to digitize all local authorities by 2026.

Institutions such as Kotelawala Defence University, Sri Lanka Police, the Department of Technical Education and Training, the University of Moratuwa, and the Sri Lanka Atomic Energy Board emerged as some of the highest contributors to GovPay in 2025. Strong adoption by the education sector in particular highlights the readiness of younger generations to embrace digital transformation and demonstrates the platform’s scalability and reliability.

Beyond routine Government services, GovPay also supported national disaster response efforts. Since 30 November 2025, the platform facilitated digital donations to the Rebuild Sri Lanka Disaster Relief Fund, collecting almost Rs. 14 million across 909 transactions, including contributions from Sri Lankans living abroad, ensuring transparency and ease of contribution during a national emergency.

As GovPay continues to grow, ICTA is working on revamping www.govpay.lk with enhanced features to support institutional onboarding, service management, and reporting capabilities. With Rs. 2 billion in digital collections achieved within its first year of operation and the last Rs. 1 billion reached in just 45 days, GovPay stands as a strong testament to the impact of coordinated digital transformation, reinforcing Sri Lanka’s vision of achieving a $ 15 billion digital economy by 2030.

The Permanent Mission of Sri Lanka to the United Nations in New York, under the leadership of Sri Lanka’s Permanent Representative to the United Nations Jayantha Jayasuriya, marked the 70th anniversary of Sri Lanka’s membership in the United Nations through a series of activities, underscoring the country’s longstanding commitment to international cooperation, principled multilateralism, and inclusive global engagement.

On 11 December, Sri Lanka joined fifteen other Member States-Albania, Austria, Bulgaria, Cambodia, Finland, Hungary, Ireland, Italy, Jordan, the Lao People’s Democratic Republic, Libya, Nepal, Portugal, Romania, and Spain-at United Nations Headquarters to mark a shared milestone. The high-level discussion brought together Ambassadors of these sixteen States and a panel of political analysts to reflect on achievements, challenges, and the future of the multilateral system. The event was broadcast on UN Live WebTV.

Speaking at the event, Ambassador Jayasuriya said: ‘As we celebrate the 80th anniversary of the United Nations this year, we celebrate its achievements and its indispensable role in the multilateral system. But anniversaries are also moments for reflection. Together, we must strengthen and improve this intergovernmental organisation for the future without compromising its core objectives or guiding principles, so that we may continue to work towards a fairer, more just, and prosperous global order.’

During the joint commemoration, the sixteen Ambassadors unveiled a special commemorative stamp symbolising unity, cooperation, and the equal place of each Member State within the United Nations.

Earlier in the year, during UN Open Source Week in June 2025, the Mission partnered with the Permanent Mission of Italy to the UN and Wiki Media to host an ‘Edit-A-Thon’ highlighting the importance of open and reliable information in preserving the institutional memory of the UN. Ambassador Jayasuriya noted, ‘This event is a chance to strengthen the UN’s historical record, empower young people, and centre diverse perspectives, including voices from the Global South, vulnerable communities, and youth.’

In October 2025, the Mission hosted a fellowship gathering to honour Sri Lankan nationals who have served across the United Nations system. Ambassador Jayasuriya recognised their contributions, stating, ‘Those of you working in the UN today carry forward a proud legacy built by generations of Sri Lankans who have distinguished themselves as diplomats, jurists, scholars, peacekeepers, and international civil servants.’

Through these events, Sri Lanka reaffirmed its enduring commitment to the United Nations and to working constructively with fellow Member States to strengthen multilateralism and advance shared global goals in the decades ahead.

Prime Minister Dr. Harini Amarasuriya stated that steps are being taken to abolish the Executive Presidency and establish a Parliamentary system of Government, including the appointment of a President without executive powers. The Prime Minister further stated that measures are currently underway to hold the Provincial Council elections, which have been stalled due to provisions in the Provincial Councils Elections (Amendment) Act No. 17 dated 2017.

The Prime Minister made these remarks yesterday at Parliament while responding to a question raised by the Leader of the Opposition, Sajith Premadasa, under Standing Order 27(2).

The Prime Minister further stated, As stated on page 194 of the policy statement ‘A Thriving Nation – A Beautiful Life’, the Government intends to draft a new Constitution. This draft will be presented to the public, followed by dialogue and discussion, after which necessary amendments will be made. The Constitution is then expected to be approved through a referendum. At present, reports of committees previously appointed to draft a new Constitution, along with other constitutional reform proposals, are being considered. Thereafter, a basic concept paper will be submitted to the Cabinet of Ministers.

The necessary steps are taken to abolish the Executive Presidency, and establish a Parliamentary system of Government, and appoint a President without executive powers will be undertaken in the process of drafting the new Constitution. It is not possible to abolish the Executive Presidential system without introducing a new Constitution. A study is currently underway on the abolition of the Executive Presidency and the possible methods of the process. While giving due attention to resolving the country’s pressing issues, focus has also been placed on abolishing the Executive Presidency. Relevant timelines will be announced in due course.

Steps are currently being taken to hold the Provincial Council elections at the earliest possible time. Under Section 3(b) of the Provincial Councils Elections (Amendment) Act No. 17 dated 2017, a Delimitation Commission appointed by the President must submit a report determining the demarcation of electoral divisions and the number of electoral districts. Once this report receives parliamentary approval, it will be possible to hold the Provincial Council elections.

The inability to hold Provincial Council elections thus far is due to the fact that the delimitation process required under the provisions of the Provincial Councils Elections (Amendment) Act No. 17 dated 2017 has not yet been completed. Accordingly, a study is currently being conducted to determine whether the elections should be held after completing the delimitation process, or whether amendments should be introduced to the provisions of Act No. 17 dated 2017 in order to proceed with the elections. A decision on holding the Provincial Council elections will be taken following the completion of this study. Nevertheless, provisions have been allocated in the 2026 Budget to conduct the elections once these processes are concluded.

The Prime Minister further stated that studies are currently underway regarding the introduction of new legislation and necessary legal amendments required to establish a Government Prosecutor’s Office.

NH Collection Colombo has celebrated the grand relaunch of Vistas Rooftop Bar on 12 December 2025 with an extraordinary evening high above the city, as guests gathered to enjoy elevated experiences and panoramic views of Colombo’s skyline. The relaunch marked the beginning of a refreshed chapter for Vistas, setting the tone for refined evenings and memorable moments overlooking the city.

Set against 290-degree panoramic city views, the relaunched Vistas unveiled a renewed ambience designed for relaxation and effortless enjoyment. The elevated setting offers guests a unique perspective of Colombo, transitioning beautifully from sunset to nightfall.

Vistas Rooftop Bar presents an extraordinary setting for relaxed evenings, romantic dinners, and celebratory occasions. Guests can enjoy a thoughtfully curated beverage selection featuring signature cocktails, personalised flaming cocktails, classic favourites, mocktails, international wines, and premium spirits, complemented by signature sharing platters and a specially designed menu curated exclusively for Vistas.

From sunset high tea experiences to intimate dining under the stars, Vistas brings together refined flavours, attentive service, and expansive city views. As the city lights illuminate the skyline, the rooftop becomes an inviting space for evenings filled with conversation and celebration.

Guests can experience the newly-elevated Vistas over the festive period with curated high tea platters available until 30 December. The celebrations continue into New Year’s Eve with a vibrant rooftop experience, live entertainment, a festive dining offering, and panoramic views of Colombo’s fireworks.

9:00 p.m. – 3:00 a.m. for Rs. 30,000 nett per person and for reservations: +94 76 4014 738.

With its grand relaunch, Vistas Rooftop Bar sets a new benchmark for rooftop experiences in Colombo, offering extraordinary moments defined by elevated views, contemporary design, and the signature hospitality of NH Collection.

The Executive Board of the International Monetary Fund (IMF) yesterday approved a disbursement of SDR 150.5 million (about $ 206 million, equivalent to 26% of quota) for Sri Lanka under the Rapid Financing Instrument (RFI).

This emergency support will help address urgent balance-of-payments and fiscal pressures arising from the catastrophic Cyclone Ditwah, which hit the country on 28 November.

In a statement the IMF said: The Sri Lankan authorities remain committed to their economic reform program supported by the Extended Fund Facility (EFF). The cyclone hit when the Fifth Review under the EFF was nearing completion. Given the time needed to assess the economic impact of the cyclone and examine how IMF-supported program can best support Sri Lanka’s recovery and reconstruction efforts while preserving objectives and policy priorities, the Fifth Review has been deferred. An IMF mission team will visit Sri Lanka in early 2026 to resume discussions.

Following the Executive Board’s discussion, Deputy Managing Director and Acting Chair Kenji Okamura issued the following statement:

‘Sri Lanka was hit by a catastrophic cyclone, claiming more than 600 lives and affecting millions more. Flooding and landslides have displaced more than 100,000 people, destroyed critical infrastructure, and devastated livelihoods across the country. The disaster has created urgent humanitarian and reconstruction needs, generating significant fiscal pressures and balance-of-payments needs. The emergency financial support provided by the IMF under the RFI will help address these pressures.

‘The Government responded swiftly with a package of relief measures, supported by strong fiscal over-performance in 2025. The Central Bank of Sri Lanka stands ready to provide liquidity support to the financial system if needed.

‘While recovery and reconstruction needs will be substantial, the authorities remain committed to maintaining fiscal prudence to safeguard fiscal and debt sustainability. All emergency spending will be executed in full compliance with the Public Financial Management Act and supported by enhanced monitoring and regular public reporting in line with transparency and accountability standards. The Central Bank will continue to refrain from monetary financing of the budget.

‘The cyclone struck as Sri Lanka is emerging from a deep economic crisis and the IMF-supported reform program under the EFF is bearing fruit. Sustained adherence to the reform agenda has underpinned a robust economic recovery, price stability, substantial revenue-based fiscal consolidation, and progress rebuilding foreign exchange reserves. Nonetheless, the economy remains vulnerable and GDP has not recovered to its pre-crisis level.

‘The authorities and IMF team maintain close engagement and will resume discussions at the earliest possible juncture. The IMF stands with the people of Sri Lanka during this difficult time and will continue to support Sri Lanka’s recovery and reconstruction efforts’.

We below feature an interview with Spanish trail tourism expert who transformed the plantation routes of Sri Lanka into a world class tourism enterprise. The 300 kilometre Pekoe Trail, winding through the Central Highlands of Sri Lanka, was created by Miguel Cunat who has made Sri Lanka his adopted home.

Q. As creator of the Pekoe Trail, how do you see the importance of stabilising the landslide affected Central Province again for tourism?

A. The Central Province is not just another tourism region in Sri Lanka. It is absolutely central to the country’s tourism ecosystem. My estimate is that 80-90% of international visitors pass through the Central Province. It is the connective tissue between the Cultural Triangle, the tea country, and the South.

This region holds some of Sri Lanka’s deepest cultural and spiritual assets; Kandy, the Temple of the Tooth, historic tea landscapes, and the lived heritage of the hill communities. If the Central Province feels unstable, the impact is felt across the tourism economy.

Stabilising the Central Province, physically, socially, and narratively, is an imperative. When this region is resilient, accessible, and confidently open to visitors, it gives confidence to the whole country’s tourism story.

Q. Do you think Sri Lanka needs to rethink its climate preparedness?

A. Yes, absolutely. Climate science is very clear that South Asia, including Sri Lanka, is undergoing a structural shift in rainfall patterns, with more intense precipitation events concentrated over shorter periods. These changes significantly increase the risk of flooding, slope failure, and landslides, particularly in hill country landscapes with steep terrain.

The scientific consensus now emphasises that climate risk must be addressed through adaptation and preparedness, not just emergency response. This means integrating climate risk into core planning decisions: locations where construction is permitted, how hillsides are stabilised, how river reservations and drainage systems are maintained, how estates manage soil and water runoff. Another important factor is how local communities are supported before, during, and after extreme events. These are fundamentally cross-sector issues, not the sole responsibility of disaster management authorities.

This approach is now fully aligned with the thinking of major international donors and development agencies.

From a tourism perspective, this science has direct implications. Climate preparedness needs to inform product design, infrastructure standards, insurance frameworks, visitor communication, seasonal planning, and investment decisions. Trails, valleys, coastal zones, and heritage landscapes are all climate-sensitive assets and require management plans that are informed by climate projections rather than historical norms.

If Sri Lanka wants a tourism economy that is resilient over the next 20 to 30 years, climate-informed planning is no longer optional, it is a baseline requirement grounded in both science and economic reality.

Q. How do you think issues of landslides are going to impact Pekoe Trail-related tourism?

A. Landslides are one of the most serious risks for trail-based tourism in the hill country. What matters is how intelligently the risk is managed.

The Pekoe Trail was designed with flexibility in mind. It is not a rigid, single-path product; it is a living system. Some sections may need temporary rerouting, seasonal closures, or long-term redesign as climate conditions evolve. Clear communication, local monitoring, and rapid response mechanisms are key.

If landslide risk is ignored or downplayed, it will damage confidence. But if it is acknowledged, mapped, and managed transparently, hikers and tour operators are surprisingly understanding. Many international trails operate in challenging environments. What reassures people is good governance, clear information, and visible care for both safety and communities.

Ultimately, landslides reinforce the argument for stewardship-led tourism rather than extractive tourism. Trails need caretakers, not just promoters.

Q. Do you have experience of other countries interweaving climate preparedness with tourism?

A. Yes.

In countries like New Zealand, Switzerland, Austria, and parts of Spain, trails are constantly monitored, risk maps are public, seasonal closures are normalised, and rerouting is accepted as part of responsible management. Importantly, there is strong coordination between tourism bodies, local councils, landowners, and environmental agencies.

Closer to home, places like Nepal have learned, sometimes the hard way, that mountain tourism must adapt continuously to climate realities. The lesson from these destinations is clear: resilience comes from long-term thinking, decentralised management, empowered local stewards, and honest communication with visitors.

Sri Lanka has the landscapes and the appeal to become a leader in climate-aware tourism in South Asia, and the Pekoe Trail points clearly in that direction. It demonstrates how tourism assets can be conceived as stewardship platforms, not just visitor products. However, the reality is that stewardship does not happen by intent alone.

The Pekoe Trail itself still requires a properly resourced stewardship framework, one that is technically capable of managing climate risk, land-use pressures, maintenance, safety, and community coordination on an ongoing basis. This is not unique to the Pekoe Trail; it reflects a wider gap in how Sri Lanka governs emerging tourism assets that are environmental, spatial, and climate-sensitive in nature.

If the country is serious about climate-aware tourism, these assets must be governed at the highest possible standards, with clear mandates, professional oversight, and, critically, predictable, long-term funding. Without that, stewardship remains an idea rather than an operational reality. With it, Sri Lanka has a genuine opportunity to lead, not just regionally, but globally.

NOTE: Our next week coverage linked to the recent climatic disaster will be from flood battered Mannar in the North-West coast of Sri Lanka.