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Finance Ministry & CBSL hold virtual meeting with creditors

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The Sri Lankan authorities held a virtual meeting with Sri Lanka’s official creditors today (03).

The meeting was chaired by the Secretary to the Treasury and the Ministry of Finance, Mr. K M Mahinda Siriwardana, and the Governor of the Central Bank of Sri Lanka, Dr. P. Nandalal Weerasinghe.

Sri Lanka remains fully committed to advancing engagements with all its creditors in an equitable and transparent way. The meeting represented another important step towards securing International Monetary Fund (IMF) Board approval for Sri Lanka’s IMF program, a media release by the President Media Division said.

The State Minister of Finance, Mr. Shehan Semasinghe, has said:

“Sri Lanka is at a critical stage, and we are seeking IMF program approval as soon as possible so that we can restore macroeconomic stability. We are grateful to our bilateral partners for their continued engagement and support during this process. The IMF program and our ambitious economic reforms will restore public debt sustainability, help protect the most vulnerable and restart our growth engine. This government is focused on re-establishing social and economic prosperity, and ensuring our citizens have access to critical public services.”

The Governor of the Central Bank of Sri Lanka, Dr. P. Nandalal Weerasinghe, has said:

“The IMF program and economic reform agenda will reconstitute Sri Lanka’s financial buffers. I thank the official creditors for joining this productive meeting where we were able to discuss Sri Lanka’s current financial position and progress on reforms.”

Sri Lanka reached a Staff-Level Agreement with the IMF on a four-year program supported by the Extended Fund Facility on 1st September 2022. The program, amounting to USD 2.9bn, is expected to restore macroeconomic stability and debt sustainability while protecting the vulnerable and safeguarding Sri Lanka’s financial system. This agreement remains subject to IMF Executive Board approval.

The IMF program has been centred around Sri Lanka’s ambitious reform program. The government’s reform agenda is based on four pillars:

  1. The first pillar is fiscal reform. The program foresees the implementation of ambitious revenue-based fiscal consolidation measures, combined with revenue administration reforms and the introduction of fuel and electricity pricing mechanisms to minimize fiscal risks stemming from SOEs. It also includes the enhancement of existing social safety nets to protect the most vulnerable;
  2. The second pillar will be to restore public debt sustainability. Sri Lanka’s debt situation has been deemed unsustainable by the IMF and will need to be addressed by a comprehensive debt treatment;
  3. Thirdly, the program will aim to restore price stability and rebuild external buffers. The government is committed to refraining from any monetary financing and the Cabinet will soon approve the Central Bank Act that will strengthen the Bank’s independence and modernise its policy framework;
  4. The fourth pillar of the program is the safeguarding of financial system stability, a key condition to Sri Lanka’s economic recovery. This will be achieved by ensuring that Sri Lanka’s banking system is adequately capitalised and by strengthening the resilience and governance of its state-owned banks.
  5. In addition to these pillars, the government will introduce a series of anti-corruption reforms that will align Sri Lanka’s legal framework with international standards and will implement broader structural reforms to unlock Sri Lanka’s growth potential.

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03 remanded over shooting of Halloluwa’s vehicle

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The Colombo Magistrate’s Court on May 24 ordered to remand 03 suspects over the shooting of Thusitha Halloluwa’s vehicle.

They have been remanded until May 29.

The remanded suspects include the shooter’s wife, who was arrested at a Maharagama housing complex.

Officers from the Colombo Crime Division (CCD), who are investigating the shooting incident further state that the other 02 arrested are the security guard of the housing complex and a person who was traveling with the shooter.

Investigations have also revealed that the security guard of the apartment complex alerted the shooter about the police arrival during the raid, leading the shooter to flee immediately.

The vehicle of Thusitha Halloluwa – the former DG of Public Relations to former President Ranil Wickremesinghe, was shot in Narahenpita on May 17.

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Basil Rajapaksa absent from court; bail not revoked

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Matara Magistrate Aruna Buddhadasa recently ordered Basil Rajapaksa – founder of the Sri Lanka Podujana Peramuna and former Finance Minister, to appear before the Matara Magistrate’s Court on November 21.

The Magistrate made the order when he took up an existing case regarding a land in the Eliyakanda area of Matara that was purchased using allegedly illegally earned money of Rs.50 million.The FCID had filed this case against Basil Rajapaksa and 04 other defendants in 2017 over the alleged purchase of a 1.5 acre land in Eliyakanda, Matara under the name of his wife’s sister, using Rs.50 million allegedly obtained through illegal means.

The first suspect in this case is Tissa Galappaththi, the second suspect is Muditha Jayakody, the third suspect is former Minister Basil Rajapaksa, and the fourth suspect is Ayomi Galappaththi, the sister of the former Minister’s wife.The first suspect in this case is Tissa Galappaththi, the second is Muditha Jayakody, the third is former Minister Basil Rajapaksa, and the fourth is Ayomi Galappaththi, the sister of Rajapaksa’s wife.

While the first 02 suspects, who are out on bail, appeared in court, Basil Rajapaksa and Ayomi Galappaththi were absent.

Deputy Solicitor General Lakmini Girihagama, representing the Attorney General’s Department, noted that while Basil had been granted court permission to travel abroad until May 23, he failed to appear without a reasonable excuse and requested that his bail be revoked and a warrant issued.

In defense, President’s Counsel Anil Silva stated that his client had booked return flights for May 18 and 19, but US doctors had advised Rajapaksa against flying for 06 months after he had fallen off a chair, sustaining damage to his neck and nerves.

Girihagama questioned the claim, stating that the X Rays only indicated a neck sprain and a minor muscle strain. Noting that the medical reports were dated March 18, 2025, it was also questioned as to why tickets were booked for May 18 and 19 if doctors had actually advised against flying for 06 months. Therefore, Girihagama called for the court to revoke bail.

President’s Counsel Silva strongly defended his client, rejecting accusations of faking illness, affirming the credibility of US medical reports, and assuring the court of his client’s presence at the next hearing, arguing there is no need for a warrant or revoke bail.

After hearing both sides, Magistrate Aruna Buddhadasa decided not to issue a warrant or revoke bail, instructing that the accused be present on the next court date. The case was postponed to November 21.

(Source: Dinamina)

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President Dissanayake pays last respects to cinema legend Malini Fonseka

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President Anura Kumara Dissanayake paid his final respects yesterday (25) evening to the late veteran actress Malini Fonseka, fondly remembered as the “Queen of Sri Lankan Cinema.”

Her remains have been placed at the Tharangani Hall of the National Film Corporation, allowing the public to bid farewell to the beloved screen icon.

Malini Fonseka passed away in the early hours of May 24 at the age of 78 while undergoing treatment at a private hospital in Colombo. 

Her body was initially kept at her Madiwela residence before being moved to the National Film Corporation, where crowds continue to gather in tribute.

Among the dignitaries paying their respects were former Presidents Ranil Wickremesinghe, Mahinda Rajapaksa, Gotabaya Rajapaksa, and Chandrika Kumaratunga.

The final rites of the legendary actress will be held today (26) with full state honors at Independence Square.

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