Sri Lanka records highest-ever workers’ remittances at $ 7.8 b in 2025

Sri Lanka’s workers’ remittances surged to a historic high of an estimated $ 7.8 billion in 2025, marking the largest annual inflow ever recorded and underscoring a strong post-crisis recovery in external foreign exchange earnings.

Foreign Affairs, Foreign Employment, and Tourism Minister Vijitha Herath announced the milestone yesterday, noting that the figure surpasses the previous decade-high of $ 7.24 billion achieved in 2016.

The 2025 performance reflects an 8% increase over that earlier record and a robust 19% year-on-year (YoY) growth, despite the Central Bank yet to formally confirm December inflows.

‘December remittances are estimated at between $ 650 million and $ 700 million, which would lift total inflows for the year to around $ 7.8 billion,’ Herath said.

He described the achievement as a significant turnaround for a country that endured a severe foreign exchange crisis just a few years ago, adding that the rebound reflects renewed confidence among Sri Lankans in rebuilding the economy.

The rebound in remittances has been particularly pronounced since the economic crisis. In 2022, inflows slumped to a 12-year low of $ 3.78 billion. This was followed by a sharp recovery in 2023, when remittances jumped by 57% to $ 5.96 billion. The momentum continued in 2024, with a further 10.1% YoY increase to $ 6.57 billion, supported by a surge in outbound labour migration as many Sri Lankans sought overseas employment after the economic collapse.

Historically, between 2014 and 2018, Sri Lanka averaged around $ 7 billion a year in workers’ remittances about $ 600 million per month, highlighting the sector’s long-standing role as a stabilising pillar of the economy.

‘The bulk of remittances in 2025 originated from Middle Eastern destinations, including Kuwait, the UAE, Qatar, Saudi Arabia and Israel, alongside inflows from Romania, Japan, the Maldives, Oman, South Korea, Australia and the US,’ Herath said.

Foreign Affairs and Foreign Employment Deputy Minister Arun Hemachandra said that in 2025, a total of 310,915 skilled and semi-skilled workers left the country for foreign employment, comprising 190,609 men and 120,036 women.

He also noted that total departures declined by 1.2% YoY, indicating that even with fewer workers going abroad, remittance inflows increased as migrants sent more money back home.

It also noted that workers’ remittances remain a critical non-debt source of foreign exchange, helping to offset balance of payments (BoP) deficits, improve liquidity in the domestic foreign exchange market, strengthen international reserves and enhance Sri Lanka’s overall creditworthiness.

In addition, remittances help the broader socio-economic benefits, including poverty reduction and the promotion of savings and investment.

Despite the strong performance, high remittance costs remain a key concern for migrant workers globally. The United Nations’ 2030 Sustainable Development Goals (SDGs) call for reducing remittance costs to 3% by 2030 as part of efforts to reduce inequality within and among countries.

Registration of Ditwah-hit businesses for Rs. 200,000 relief extended to 16 Jan.

The Industry and Entrepreneurship Development Ministry said business registration for export, manufacturing, and other enterprises affected by Cyclone Ditwah has resumed under a second phase and will be extended until 16 January.

The Ministry said the registration was restarted following requests from manufacturing and small-scale industrial operators.

It also said a disaster relief grant of Rs. 200,000 will be extended to small and medium-scale factories that have yet to register with the Ministry, with payments to be channelled through the Divisional Secretariats in the affected districts.

According to a Ministry assessment, 29,649 export, manufacturing, and small and medium-scale businesses have already registered through the newly introduced hotline, while a further 9,628 export and manufacturing factories fall directly under the Ministry’s supervision.

The Ministry said follow-up assistance is being provided to all affected enterprises, with around 1,500 officials deployed to support the process.

Sri Lanka v Pakistan T20I series in Dambulla Match tickets go on sale from today

Match tickets for the 3-match T20I series of Pakistan’s tour of Sri Lanka can be obtained through the following methods, states a Sri Lanka Cricket media release:

Online: https://mycricket.com.lk

Physical Counters:

Match tickets will be available for purchase from 5 January at the following locations from 9 a.m. to 5 p.m.

RDICS, Dambulla, and Sri Lanka Cricket headquarters counter at Maitland Place.

Matches will be played at the Rangiri Dambulla International Cricket Stadium on 7, 9 and 11 January.

Category Type Ticket Price (LKR)

Level 3 – AC Box (per seat) Seating 10,000

Grand Stand Level 3 Seating 5,000

Block A Seating 2,000

Block B Seating 2,000

Block C Lower Seating 2,000

Block C Upper Standing 1,000

Block D Lower Seating 2,000

Block D Upper Standing 1,000

Block E Lower Seating 2,000

Block E Upper Standing 1,000

Block F Lower Seating 2,000

Block F Upper Standing 1,000

Block H Lower Seating 2,000

Sigiriya End (Standing) Standing 750

NOLIMIT Expands to the North with Grand Opening of 28th Store in Jaffna

NOLIMIT, Sri Lanka’s leading Fashion Retail Brand, is proud to announce the grand opening of its 28th store in the heart of Jaffna, a city celebrated for its distinct Northern identity, deep-rooted traditions, and a culture shaped by heritage, learning, and close-knit community life. From its vibrant marketplaces and cuisine to its arts, crafts, and enduring spirit of enterprise, Jaffna stands apart as one of Sri Lanka’s most culturally significant and fast-evolving urban centers. Reflecting this character, NOLIMIT’s newest store in Jaffna is designed to complement the city’s modern aspirations while offering residents and visitors a more elevated, family-friendly shopping experience. This milestone further solidifies the brand’s commitment to providing Sri Lankans with an unparalleled shopping experience while continuing its expansion across the island and beyond. The new store, located within Jaffna town’s main commercial precinct, offers a wide selection of menswear, womenswear and kids wear,

alongside shoes and accessories, as well as Homeware, toys, Travel and Luggage and cosmetics, bringing a complete lifestyle retail experience under one roof. The Jaffna store spans four stories, offering customers a convenient, affordable, and familyfriendly shopping environment with ample parking and easy access. Customers can explore a broader and more diverse product range curated to reflect both global fashion trends and local preferences. Founded in 1992, NOLIMIT has grown into the largest Fashion Retail Chain in Sri Lanka with a strong presence across the island. It has also expanded internationally with four stores in the UAE. Known for its customer-centric approach and award-winning service, NOLIMIT has established itself as a leader in Sri Lanka’s fashion retail sector, consistently setting new benchmarks in service excellence and fashion trends. Mr. Hafiz Mubarack, Managing Director, NOLIMIT, said: ‘Jaffna is one of Sri Lanka’s most important cities, rich in culture, enterprise, and potential, and we see it as a key growth hub in the country’s next phase of economic and social progress. With our 28th store, we are proud to invest in Jaffna’s future by bringing a modern, world-class retail experience that matches the city’s evolving aspirations, while making quality, trend-forward fashion more accessible to families across the region.’ Mr. Raneez Sheriff, Assistant General Manager, NOLIMIT, added: ‘In the coming years, Jaffna is well-positioned to evolve into a stronger commercial hub and a rapidly evolving consumer landscape. Strategically, our expansion focuses on reaching Potential markets and ensuring that NOLIMIT becomes the country’s most widely loved fashion retail chain, accessible to customers in every part of Sri Lanka.

Jaffna has always been an important part of our long-term growth plans, and this store opening reflects our commitment to being a truly national brand that connects with communities’ island-wide, while delivering an affordable, high-quality retail experience that matches the city’s momentum and aspirations.’ The store’s design incorporates international trends, creating a modern, stylish environment that invites customers to explore the latest fashion collections in a welcoming atmosphere. With a focus on customer satisfaction and convenience, NOLIMIT continues to lead the charge in transforming Sri Lanka’s retail landscape. As part of its expansion strategy, NOLIMIT aims to open additional stores across Sri Lanka in the coming months, reinforcing its position as a market leader in the fashion retail industry. The Jaffna store serves as a testament to NOLIMIT’s ongoing growth and its commitment to bringing worldclass fashion to every corner of the country.

Sri Lanka’s disaster problem isn’t just nature – it’s architecture

When floods and landslides strike Sri Lanka, the public conversation almost always turns to nature. Heavy rain, deforestation, hill cutting, and river encroachment are cited as the culprits. These factors are real and serious: forest loss accelerates runoff, altered slopes destabilise terrain, and encroached floodplains erase natural buffers. None of this can be denied. Yet environmental degradation alone does not explain why disasters repeatedly unfold with late warnings, confused responses, and post-event blame.

The deeper problem is architectural. Not architecture in the sense of buildings or dams, but the governance and control systems that translate environmental signals such as rainfall, river levels, reservoir storage, slope saturation into timely, enforceable public action. Environmental damage increases the load on this system. The absence of an integrated hazard management architecture is what allows that load to become a catastrophe.

Each major flood exposes a persistent gap in Sri Lanka’s disaster management framework. Public debate quickly narrows to familiar, technical-sounding questions: Were reservoir gates opened too quickly? Were warnings issued on time? Was the rainfall truly unprecedented?

While these questions appear precise, they are largely distractions. They reduce what is fundamentally a national-scale systems failure into a sequence of isolated operational errors. This framing obscures the deeper issue: the absence of a coherent governance mechanism capable of integrating environmental realities into enforceable, state-wide decisions.

From an engineering perspective, Sri Lanka’s challenge is not rooted in a lack of awareness, expertise, or concern. Rather, it lies in the absence of an executable hazard governance operating system, one that can systematically connect data, forecasts, and risk assessments to binding actions across institutions. Without such a system, responses remain fragmented, reactive, and vulnerable to repetition of the same failures with each new flood.

Hazards are control problems, not media events

In modern risk management, floods and landslides are not anomalies. They are evolving input signals. Rainfall intensity, spatial distribution, and duration feed into catchment response. Catchment response feeds into river stages and reservoir inflows. These, in turn, determine when roads must close, when reservoirs must release water, and when people must evacuate.

The minimum control loop is well understood. Rainfall estimates feed runoff models, which generate inflow hydrographs. Reservoir routing produces downstream river stage projections. These are translated into inundation maps, warning triggers, compulsory orders, and enforcement.

Sri Lanka has fragments of this chain scattered across agencies. One monitors rainfall, another operates reservoirs, another issues landslide warnings, other requests evacuations. What it lacks is integration. However, these components are not fused into a single real-time decision system. Forecasts do not automatically become orders.

When this control loop is broken, the state relies on ‘early warning’ in the form of sirens, media announcements, and generic alerts. These are communication tools, not operational controls. A true warning is precise: it states that at a specific time and place, water will exceed a defined level, and evacuation is mandatory. Without stage-based, location-specific projections, warnings cannot be trusted or enforced.

Reservoir debates expose structural failure

The architectural gap is most visible in debates over reservoirs. After every major flood, arguments erupt: did a dam cause downstream inundation? Victims describe sudden water rises, engineers cite storage volumes, politicians demand accountability. The public expects a clear answer.

But without calibrated reservoir-river flood models, no one can answer the only question that matters: what downstream river stages were expected, at what times, from each release decision, under prevailing rainfall?

Victim testimony shows impact, not causation. Simplified arithmetic produces numbers, not hydrographs. Without real-time inflow data, routing models, and downstream stage discharge relationships, it is technically impossible to isolate reservoir releases effects from cyclone rainfall, uncontrolled tributary inflows, floodplain storage, and channel constraints.

This is why the debate never ends. Sri Lanka is arguing causality without the scientific and institutional machinery required to calculate it.

The Hill Country: A coupled hazard system

Sri Lanka’s hill country is not merely landslide-prone. It is a coupled hazard system. The same rainfall event can saturate slopes, trigger landslides, fill reservoirs, and flood downstream cities. Droughts can even prime landscapes for violent flash floods by degrading soil structure and drainage capacity. Climate volatility has tightened these linkages.

Yet governance remains fragmented. Landslides, floods, and reservoir operations are treated as separate problems, managed by separate institutions under separate laws. The hazard cascade moves as one system. The state does not.

Planning without execution

Sri Lanka’s spatial plans increasingly point in the right direction. They favour densification along transport corridors, protection of environmentally sensitive zones, reduced expansion into unstable terrain. This is sensible. Scattered settlement across hills and floodplains is economically and administratively unsustainable.

However, densification alone does not equal safety. Concentrating people in flood exposed areas without calibrated models, enforceable zoning, and evacuation control simply concentrates risk. A spatial plan without operational science is aspiration, not protection. A spatial map is intent. Safety requires a system that can execute that intent under stress.

What reform requires

Real reform is architectural, not rhetorical. At minimum, Sri Lanka needs:

Unified real-time telemetry linking rainfall, river levels, reservoirs, and slope sensors.

Executable models calibrated against past floods to produce stage-based forecasts with defined thresholds.

Legal command authority to convert those thresholds into compulsory orders across agencies.

Clear public outputs stating what will happen, where, and when in plain language and multiple formats.

Auditable decision logs so failures are diagnosed as engineering problems, not politicised afterthoughts.

This is not theoretical. Countries such as New Zealand and Australia recalibrate models after major floods, publish updated maps, and hard-wire lessons into operational rules. They do not rely on post-event narratives.

Sri Lanka’s disasters are not proof of nature’s cruelty. They reveal a governance system unable to process environmental stress. Deforestation, hill cutting, and river encroachment intensify hazards. Architecture determines whether that intensity becomes a manageable emergency or a national tragedy. Until Sri Lanka builds a hazard governance operating system capable of converting environmental intelligence into compulsory, timely action, every major storm will end the same way: suffering on the ground, arguments in public, and lessons deferred to the next disaster

The real lesson

Sri Lanka’s disasters are not proof of nature’s cruelty. They reveal a governance system unable to process environmental stress. Deforestation, hill cutting, and river encroachment intensify hazards. Architecture determines whether that intensity becomes a manageable emergency or a national tragedy.

Until Sri Lanka builds a hazard governance operating system capable of converting environmental intelligence into compulsory, timely action, every major storm will end the same way: suffering on the ground, arguments in public, and lessons deferred to the next disaster.

CBSL extends suspension of Perpetual Treasuries’ business

The Central Bank of Sri Lanka (CBSL) yesterday said that acting in terms of the regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance, it has decided to extend the suspension of Perpetual Treasuries Ltd. (PTL) from carrying on the business and activities of a primary dealer. Accordingly, the suspension has been extended for a further period of six months with effect from 4.30 p.m. on 5 January 2026, in order to continue the investigations being conducted by the CBSL.

Ruana Rajapakse’s fight for Galle Face Green

While watching television broadcasts on Christmas Day and New Year’s Eve, I could not help but reflect on whether even one per cent of the celebrants enjoying the festivities at the Galle Face Green, or the commercial enterprises that earned revenue through events and advertising, were aware of the extraordinary individual whose courage and intellect made such public enjoyment possible.

The unrestricted access of the general public to the Galle Face Green, the vibrant celebrations witnessed by television viewers, and the continuity of public events at this iconic location were not accidental developments. They were made possible through the dedicated, erudite, and fearless legal work of Ruana Rajepakse, Attorney-at-Law, who acted steadfastly in the interest of the public.

Galle Face Green: A people’s space

Her legal intervention, undertaken with courage and unwavering commitment, paved the way for the commencement and continuation of public activities at the Galle Face Green, safeguarding it as a space for the people.

Yet, her contribution remains largely unacknowledged, an example of the quiet dedication of a lawyer who placed public interest above personal recognition.

Even a cursory look at Ruana Rajapakse’s life and work reveals an extraordinarily ambitious and accomplished woman: a Supreme Court Attorney and a playwright, a newspaper columnist and an environmentalist, a novelist and a legal advocate.

Multi-skilled family

Ruana hailed from a family with strong ties to the legal profession, politics and foreign affairs, and the arts. Her great-grandfather was Sir Francis de Zoysa, an advocate of the Supreme Court of Ceylon who was later appointed King’s Counsel. Her grand uncles included Stanley de Zoysa, the former Finance Minister, A.C. ‘Bunty’ de Zoysa, a President’s Counsel and Lucien de Zoysa, a pioneer of English theatre in Colombo.

Her father, Jayanath Rajapakse, was a member of the foreign service and her childhood was spent in far-flung corners of the world, from Russia to Canada, where she was exposed to multiple languages, cultures and social systems.

Upon returning to Sri Lanka at the age of ten, she spent a good deal of time with her extended family, which included Richard de Zoysa, the renowned actor, playwright, poet and journalist who was found dead during the second JVP insurrection in 1990. They were no ordinary family gatherings. Under Richard’s guidance, assorted members of the de Zoysa clan staged numerous plays well before their teenage years. Many who were involved in these home grown yet highly elaborate productions remained involved in the theatre scene for years afterwards

A woman who wore many hats

Perhaps due to these varied and powerful influences, Ruana was not content to merely follow a mid-level career in her chosen profession. As a barrister, she served a Presidential Task Force on Child Abuse and wrote a weekly column for the Island Newspaper entitled Legal Watch. She authored two professional volumes on constitutional and legal issues in Sri Lanka.

Determined to seek new avenues of creative expression, she also wrote and produced two plays: a ‘Colombo’ version of R. B. Sheridan’s School for Scandal and the one-act play ‘All In A Day’s Work’. A deep curiosity about Sri Lankan history later fueled her foray into novel-writing, and in 2008 she published her first and only work of fiction entitled Garland of Fate, inspired by a jataka story set in 510 BC.

A very private person, she did not often speak openly about herself. Anyone who interacted with her, whether in a personal or professional capacity, immediately recognised her tendency for hard work, her dedication to immaculate scholarship and her respect for learning. She was articulate and passionate about a number of issues and was a member of the Sri Lanka chapter of the IUCN Commission on Environmental Law. She was an outspoken critic of the Urban Development Authority’s attempts to hand over the Galle Face Green to a private company in the early 2000s for the purpose of building an amusement park on the waterfront. When a public-interest environmental organisation took up the case, she represented them in the Supreme Court, according to the Access Initiative. The Court annulled the agreement between the Urban Development Authority and the private company, ruling that the UDA did not have the power to hand over the Green, which had been ‘dedicated to the public by an order of the Colonial British Government in 1856.’

In a tragic turn of events, Ruana spent her last years on this earth in poor health. She died alone on 26 July, and her funeral was conducted without the knowledge of her extended family or colleagues. We hope this belated obituary offers a glimpse into her rich and full life. Though her final years were spent in isolation and obscurity, she will be remembered for her fine contributions to the fields of law and letters in Sri Lanka.

This article is a tribute to her great and brave work. It is written not only to honour her memory but also to acknowledge the unsung dedication she showed in service of the general public and the rule of law.

May her legacy continue to inspire the generations to come.

Faldo Junior Series powered by DFCC Bank for 2nd year in tandem

The Faldo Junior Series Sri Lanka powered by DFCC Bank returns for the second consecutive year, reinforcing its position as the country’s premier junior golf championship and a vital pathway for emerging talent from 6 till 8 January at the Royal Colombo Golf Club.

With over 132 young golfers in action, the tournament once again brings together skill, ambition, and opportunity under the globally respected Faldo Series, founded by six-time Major champion Sir Nick Faldo.

The championship is structured to provide fair and competitive exposure across clearly defined age categories. Faldo Juniors features two divisions 13 to 16 years and 17 to 21 years, with separate competitions for boys and girls. Meanwhile, Faldo Futures caters to the next generation with three age groups: 7 to 8 years, 9 to 10 years, and 11 to 12 years, again contested separately for boys and girls. The Senior segment defending champions are Kaya Daluwatte (Girls) and Jevahn Sathasivam (Boys).

Adding further prestige, winners of the Faldo Juniors categories earn a coveted berth at the Faldo Junior Tour Asia Grand Final, scheduled to be played at the iconic Laguna Lang Course. This opportunity offers Sri Lanka’s brightest prospects direct exposure to elite regional competition and international benchmarking.

The Sri Lanka leg of the Faldo Junior Tour is part of the prestigious global Faldo Series, recognised for producing world-class professionals and nurturing junior excellence. This event provides young golfers with a rare international platform while instilling competitive discipline and sportsmanship at an early stage.

From left: Rizwan Jowhersha, T. Deshan, Mahela Jayawardene, and Rajeev Pandithage

The tournament is organised by the Royal Colombo Golf Club (RCGC), Sri Lanka’s most historic and prestigious golf institution. RCGC’s continued initiative to bring the Faldo Series to Sri Lanka has played a pivotal role in elevating junior golf standards and positioning the country on the regional golfing map. Supporting the championship for the second year running, DFCC Bank continues as the title sponsor, reaffirming its commitment to youth development and national sporting excellence for the second year in tandem.

DFCC Bank CEO Thimal Perera said, ‘DFCC Bank has always walked alongside Sri Lanka’s progress whether from industry to innovation, or from homes to entrepreneurs. Through the Faldo Junior Golf Tournament, we are proud to invest in young golfers who have the potential to carry their success onto global fairways. This is more than sport, it is discipline, confidence, and opportunity taking root in each player’s journey. We feel privileged to uplift their aspirations and to stand with them as they take their next swing towards the future.’

This year, the series is further enhanced through its technology partnership with N-able, a leading digital transformation and technology solutions provider. N-able powers the live scoring platform, delivering real-time updates that enhance transparency for officials and create a more engaging, immersive experience for spectators and followers.

N able CEO Shirantha Herath said, ‘We believe technology has the power to elevate every experience, including sport. Partnering with Faldo Series, Sri Lanka, aligns perfectly with our vision innovation to enhance performance, transparency and engagement. Through live scoring and digital solutions, we are proud to support players, officials and fans by brining real time insights that enrich the tournament experience.

With DFCC Bank and N-able working in tandem, the Faldo Junior Series Sri Lanka stands as a benchmark event in junior golf blending tradition, innovation, and opportunity to shape the future of Sri Lankan golf.

An open letter to Central Bank of Sri Lanka Governor Dr. Nandalal Weerasinghe

We write to you as co-organisers of the statement endorsed by 121 economists and academics from around the world. The signatories include Joseph Stiglitz, who is a Nobel laureate and former chief economist of the World Bank, former finance ministers of their countries (Martin Guzman, Yanis Varoufakis), former employees or advisers to high-level UN bodies and other governments. Many of the signatories have direct knowledge and/or experience of the harmful impacts of IMF programs for countries undergoing debt distress. The call is for the immediate suspension of Sri Lanka’s external sovereign debt repayments as a first step to negotiate a comprehensive restructuring to restore debt sustainability in light of current conditions.

The critique of the statement made during an interview on Ada Derana Hyde Park on 1 January 2026, necessitates a considered response to provide further clarification.

We believe that the current conditions and targets arising from the IMF›s Debt Sustainability Analysis (DSA) constrain the fiscal space to prioritise the wellbeing of people and the environment. Since the newly elected Government came with a democratic mandate, promoting effective governance necessitates an independent DSA to promote economic sovereignty of the country. These conditions help the State and Government to deliver on its democratic mandate over the interests of predatory lenders and creditors.

The monetary policies implemented under the current governorship therefore exert a profound influence on Sri Lanka’s economy and the ability of the current Government to deliver on its progressive program, particularly in the context of the ongoing sovereign debt and climate crises.

The robust defence of the IMF program, unqualified endorsement of the debt sustainability analysis, and uncritical support of private creditors undermine democratic governance and the role of public officials in promoting the economic sovereignty of Sri Lanka.

We wish to comment on a number of your quotes and have included the time stamp during interview (these are shown in brackets).

1. ‘As a result of the cyclone impact, the Government has announced no new debt will be raised.’ (40:53)

The IMF has extended a $ 206 million loan to Sri Lanka under its Rapid Financing Instrument, while India has provided assistance amounting to $ 450 million, of which US$350 million takes the form of loans. Although these facilities are offered on concessionary terms, they add to Sri Lanka’s already substantial external debt stock and will require future debt servicing, thereby intensifying fiscal and balance-of-payments pressures.

2. ‘So what is the justification for us to ask for another restructuring if the IMF DSA is not going to be affected?’ (41:52)

Even prior to the cyclone, the IMF itself acknowledged that Sri Lanka’s path to debt sustainability was ‘knife-edged,’ with the country only narrowly meeting program targets and facing an estimated 50% probability of a renewed default. At the same time, more than 25% of Government revenue is allocated to external debt servicing, leaving virtually no fiscal space to meet the substantial reconstruction costs now confronting the State. In this context, Sri Lanka’s future foreign-currency expenditure should be prioritised toward reconstruction, restoration, and development needs rather than debt servicing.

3. ‘As the Government is going to use the saving they have without raising new debt, there will be no impact on the DSA.’ (42:47)

With usable foreign exchange reserves of less than $ 5 billion Sri Lanka has limited capacity to absorb additional external economic shocks. At the same time, the World Bank has estimated cyclone-related physical losses at approximately $ 4.1 billion a figure that excludes income losses, business interruptions, and the costs of recovery and reconstruction. This implies that Sri Lanka’s foreign exchange requirements substantially exceed its currently available reserves, underscoring the severity of the external financing constraint

4. ‘What we ask businesses to do with regard to debt repayments is the same as for a country. The Government is saying they are not going to raise additional debt for debt servicing and going to use savings generated through revenue.’ (44:10)

It remains unclear whether the Government was advised to continue external debt servicing without pursuing a significant reduction in the debt stock as part of a more sustainable resolution. Unlike private firms, which benefit from bankruptcy protections, sovereign states lack comparable legal safeguards internationally against reckless lending and the accumulation of odious debts. In this context, questions also arise as to why creditors that charged high interest rates as a risk premium continue to demand full repayment from distressed countries, without facing meaningful consequences for inadequate due diligence.

5. ‘This was the same group (of economists and academics) who were asking during our restructuring negotiations with the IMF, not to pay any debts.’ (44:33)

The previous statement stated the following ‘private creditors own almost 40% of Sri Lanka’s external debt stock, mostly in the form of International Sovereign Bonds, but higher interest rates mean that they receive over 50% of external debt payments. Such lenders charged a premium to lend to Sri Lanka to cover their risks, which accrued them massive profits and contributed to Sri Lanka’s first ever default in April 2022. Lenders who benefited from higher returns because of the ‘risk premium’ must be willing to take the consequences of that risk.’

The statement continues to mention how ‘The Sri Lankan case will provide an important indicator of whether the world-and the international financial system in particular-is equipped to deal with the increasingly urgent questions of sovereign debt relief and sustainability; and to ensure a modicum of justice in international debt negotiations. It is therefore crucial not only for the people of Sri Lanka, but to restore any faith in a multilateral system that is already under fire for its lack of legitimacy and basic viability.’

6. ‘I don’t know what the intentions of the group are. To me their intentions are not to help the country.’ (46:23)

The group of economists and academics is motivated by a commitment to support underprivileged populations in Sri Lanka and across the Global South who bear the heaviest burdens of debt and climate crises. They have consistently highlighted the consequences of the unjust global economic order, the risks associated with the weaponisation of the global reserve currency, and the undemocratic structures of international financial institutions. Committed to raising awareness among policymakers worldwide, they seek to share their research and experiences to help countries protect themselves from these systemic risks. They are also prepared to assist governments, including Sri Lanka, that lack the capacity to conduct independent debt sustainability analyses prioritising the welfare of their citizens over the interests of external creditors, and address the critical gaps of the IMF DSA.

The interview also raised a few other points that need commenting.

i. ‘The country should prepare for this kind of event and keep building savings. As a household if you have an unexpected event in your family, if you don’t have savings in your bank you are going to go through a difficult cycle.’ (12:01)

While the Government does require foreign currency reserves to meet external debt obligations, comparing the finances of a sovereign, currency-issuing state to those of a household is misleading and distorts public understanding of State finances. Treating the Government as if it were financially constrained like a household can result in chronic underinvestment, delayed emergency responses, and unnecessary human suffering. Unlike households, Sri Lanka’s Government can always meet its domestic debt obligations through monetary financing and can continue to do so until the economy reaches its full productive capacity. Any inflationary pressures from such financing can be managed through taxation, which withdraws excess currency from circulation and stabilises prices.

ii.’During the last year, the Government built a buffer of Rs 1 trillion in the Finance Ministry with State banks. Rs. 500 billion can be used now on recovery efforts.’ (10:43)

Given that Parliament, under the Appropriation Bill 2026, can instruct the Central Bank to facilitate payments through advances from the Consolidated Fund at the Government’s disposal, claims suggesting a need for a ‘buffer’ are misleading. These payments are executed electronically through the national banking system, with the Central Bank ensuring settlement. The critical issue is not the availability of Government funds, but whether the country possesses the domestic capacity and sufficient external flexibility, particularly in foreign exchange and import availability, to absorb and deploy essential emergency spending effectively.

iii. ‘When the Government spends money for reconstruction and rebuilding there will be an additional demand for imports such as cement, steel, building and construction material.’ (4:20)

Estimates of the cost of rebuilding have ranged between $ 6-7 billion.However, Sri Lanka’s challenge extends beyond simple reconstruction. The priority should be to initiate ecologically sensitive reconstruction and development to facilitate local community resourcefulness and social protection against future external and climate-related shocks. Achieving this will require substantial foreign exchange inflows over the next several years. At the same time, debt servicing obligations are likely to remain a binding constraint on available fiscal and external resources. Additionally, many businesses affected by the cyclone will need to import replacement machinery and equipment, further increasing foreign exchange demand in the short to medium term.

We urge the Central Bank of Sri Lanka to encourage the Government, the Finance Ministry, and the IMF to recognise the value of assembling a dedicated team to collaborate with external experts to build capacity and technical skills in conducting an independent debt sustainability analysis to prioritise the wellbeing of the Sri Lankan population. Such an analysis would strengthen the Government’s position in the remaining IMF program reviews and provide a credible roadmap for achieving a sustainable external debt position and the elimination of odious debt.

We (like the signatories) remain committed to promoting the interests and welfare of Sri Lankan citizens hardest hit by the debt and climate crisis.

A moment of sisterhood

Controversy rages about the whodunnit of the entry of a link to a search site for gay and lesbian partners in an English textbook for 6th graders. Education, Higher Education and Vocational Education Ministry Secretary Nalaka Kaluwewa has reported the matter to the Criminal Investigation Department for an investigation. So far, one head has rolled. The National Institute of Education Director General Manjula Vidanapathirana, has stepped down until the outcome of the investigation. The Director General has been magnanimous to accept that the onus was on her to check the publication.

A crescendo of voices from moralists to members of the Opposition are calling for Prime Minister Harini Amarasuriya to step down. The Prime Minister is the Minister of Education, Higher Education and Vocational Education. Some of these demands are reasoned and matter of fact. Others are rude and crude at best and down-right vulgar and derogatory at worst. The spectrum of the lingo which is being used to malign the Prime Minister has become an abomination.

The vitriol the Prime Minister is being subjected to is driving women to stand in solidarity with her irrespective of their political allegiances. It is almost a moment of national sisterhood. Theirs is also a stance for decency and a society which respects it. Sri Lanka is largely a patriarchal society. It is a moot point whether a man wearing the Prime Minister’s shoes would have had to endure similar slurs.

Reform of Sri Lanka’s education system has been a long time in the making. Successive governments paid lip service to it but did not have the political will to implement the changes. The current Government, whose second citizen is a woman, has taken on the challenge replete with teething issues. The resistance to reform has come from many quarters. It has also become a political hot potato for the Opposition to leverage to launch themselves back into government.

A progressive education system is needed to position Sri Lanka to respond to evolving global needs. It is also required to nurture the country’s future generations from which will rise her future leaders who will have to be equipped with the capacity to envision a better Sri Lanka. Perhaps Sri Lanka’s archaic education system has been its own nemesis. Reportedly, one third of the last parliament had only an ordinary level qualification. Sri Lanka is often lauded for her high literacy rate but how does this translate into action? A mere ability to read and write should not be the only parameters for literacy.

A forward-looking education system will not cringe at the inclusion of sex education in it. It is not something to be prudish about. The Government must find a way to navigate local sensitivities through engagement with local communities, parents and teachers and the clergy. A mature Opposition will come together with the Government and support it to pursue what is good for the country.