Category Archives: IMF

Sri Lanka’s Economy Now: After A Honeymoon….

Item in THE ECONOMIST, 6 Sep 2025, entitled The Sri Lankan government’s honeymoon is nearly over” … & sent to me by  Jayantha Somasundaram of Canberra; while the highlights are my imposition

Initial popularity:  OPENED IN AUGUST with the stated ambition of making Sri Lanka “India’s Macau”, the City of Dreams development in downtown Colombo houses a casino, luxury hotels, high-end shops and a champagne-and-cocktail bar “floating amid the clouds”. The gleaming but for now largely deserted halls of the vast complex seem a symbol of renewal: a far cry from the mass civil unrest of just three years ago and the accompanying economic collapse—rampant inflation, fuel shortages, mass poverty and foreign-debt default.

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India’s Looming Interventions in Sri Lanka

Dr. Asoka Bandarage, in The Island, 31 March 2025  ……. where the title runs as “Indian colonialism in Sri Lanka” with highlighting being interventions by the Editor, Thuppahi

Following independence from Britain, both India and Sri Lanka emerged as leaders of the Non-Aligned Movement, which sought to advance developing nations’ interests during the Cold War. Indeed, the term “non-alignment” was itself coined by Indian Prime Minister Jawaharlal Nehru during his 1954 speech in Colombo. The five principles of the Non-Aligned Movement are: “mutual respect for each other’s territorial integrity and sovereignty; mutual non-aggression; mutual non-interference in domestic affairs; equality and mutual benefit; and peaceful co-existence.”

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Mehdi Hasan’s U-Tube Interview with Ranil Wickremasinghe

Dr Sanjana Hattotuwa, in Groundviews, …. https://groundviews.org/2025/03/07/sentiment-analysis-of-ranil-wickremesinghes-al-jazeera-interview-with-mehdi-hasan/

Renowned journalist Mehdi Hasan interviewed the former president Ranil Wickremesinghe on a programme of Head to Head, produced by Al Jazeera. The programme was released to YouTube and first broadcast on March 6.

At the time I studied 5,144 comments in response to it, the video had been watched over 218,620 times and liked over 8,000 times. Comments, views and likes are increasing at pace, which means that by the time this is read, the sentiments, trends and patterns analysed are not going to fully or accurately capture additional sentiment. What follows must be read as a study of the sentiments in the comments published at the time of writing this post.

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Sri Lanka’s Precarious Political Economy ….. Yesterday & Today

Mick Moore, whose chosen title is  It’s the Party, Stupid: Sri Lanka’s Political Turnaround – Part 1” ….. while the highlighting in this version with a different title has been imposed by The Editor, Thuppahi

Photo courtesy of BBC

It is not quite a miracle. But it is certainly a very impressive turnaround. From around 1970 until 2021, Sri Lanka seemed to be on an irreversible track toward steadily worsening governance: grand corruption, disregard of the law, ethnic and religious conflict, state violence and (non-military) government incapacity and incompetence. Today, by contrast, following the September 2024 presidential and the November 2024 parliamentary elections, the prospects for more substantive democracy and better governance seem bright. The old political elite and the broader politician class have been replaced almost completely through the most peaceful and fair elections that the country has seen for a long time. The prospect of military intervention in politics has entirely faded. The female proportion of MPs doubled from a very low 5 percent in a year when the global trend was in the other direction.

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Thoughts on Rajiva Wijesinha’s Book on Ranil Wickremasinghe

Uditha Devapriya

I was perhaps a little overenthusiastic, in trying to claim objectivity for Rajiva Wijesinha’s latest book, when I said at the launch on Tuesday, December 17, at Lakmahal, that the role of the political commentator and observer is not to pass judgments, but rather to lay bare the facts for the reader to decide. During the Q and A I was bluntly – and justly – critiqued by a member of the audience: no, he said, the role is not to overwhelm the reader with facts – it is to come to conclusions, to make the reader aware.

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The IMF’s Vice-Like Grip on Sri Lanka’s Testicles … Continues

Darini Rajasingham-Senanayake, whose chosen title runs thus‘ ‘The IMF’s Remarkable Timing and a President’s Mandate for Debt Justice” …. with highlighting imposed by The Editor Thuppahi**

At Annual Meetings in Washington in October International Monetary Fund head, Kristalina Georgieva claimed Sri Lanka as a debt restructuring ‘success’ story.[i]  Left unsaid was that Sri Lanka’s external debt had apparently ballooned from $26 billion to a purported whopping $100 billion during two years of “reforms’ under the IMF’s Extended Fund Facility (EFF)![ii]

A month later, the island’s newly elected Cabinet led by President Anura Kumara Dissanayaka signed off on an official “bond exchange” with International Sovereign bondholders (ISB). The President had done a U-turn on election pledges to re-negotiate agreements with the IMF and ISB that were widely perceived to be detrimental to the county.

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Tilvin Silva in Q and A – Sri Lanka’s Issues Today

Kelum Bandara in the Daily Mirror, 29 November 2024

Tilvin Silva, the General Secretary of Janatha Vimukthi Peramuna (JVP), the core base of National People’s Power (NPP), shares his views on the government’s way forward and responds to social media criticism on his participation at ABBA Tribute Concert during an interview with the Daily Mirror. … with blue-cloured highlights imposed by The Editor, Thuppahi

Q: At the press conference conducted in the immediate aftermath of the general election, you talked about the seriousness of the mammoth mandate your party received.  Did you panic because you received such a large mandate?

It is not that we panicked due to the mandate. Ours is a political force different to others.  We did not seek a mandate to realise our individual interests. We do not want to be arrogant with power.  We only want to resuscitate this country. Whenever an overwhelming majority of people place their trust in us,  we have to take it with due seriousness. Then only, we can position ourselves for realization of their aspirations.  We have to grasp the true, serious message of this large mandate which is meant to rebuild the country.

“Our mission was to create a just and fair society for the people. We engaged in politics for it.  In the wake of past attempts to crush our party, we resorted to different means to press ahead with our struggle. Since then, society has evolved and we also adjusted ourselves accordingly.  Still, we did not deviate from our founding principles and objectives. We changed our strategies and reorganised ourselves.”

You got this mandate in the month of November when your party is commemorating its past leaders, including founder leader Rohana Wijeweera, who were assassinated. What do you feel about this victory at such a moment of time?

It is only a coincidence. No matter what, we feel happy that we received this electoral victory came just after the 35th anniversary of our fallen comrades. Our victory has been destined and timed accordingly. Yes, we feel happy over this victory 35 years after our party was crushed.

You have been through thick and thin during this period. Can you comment?

Yes I joined the party in 1978.

In today’s context, is there any practical possibility to realise founding principles and objectives of the party?

Our mission was to create a just and fair society for the people. We engaged in politics for it.  In the wake of past attempts to crush our party, we resorted to different means to press ahead with our struggle. Since then, society has evolved and we also adjusted ourselves accordingly.  Still, we did not deviate from our founding principles and objectives.  We changed our strategies and reorganised ourselves, though.

How do you specify it?

In one era, armed struggles were considered in the world as a way of capturing power. In our movement, we resorted to it as and when the situation demanded.  Later, it became a method disregarded in the world. After that, we turned to building a public movement. There were many transformations in the world. Technology evolved and lifestyles altered.  People’s necessities have changed since 1965, when we formed the party.   We harboured the idea right from the beginning that we should secure public support first to gain political power. We tried from the beginning to expand ourselves into public movements. We did it under different terminologies. It did not succeed initially. Yet, in 2018, it became successful. It is a public movement, not a coalition.  We chose slogans in terms of public needs.

“There is no individual staking claims for this (NPP) victory.   There is a limit to what I can do as an individual.  This is the end result of a collective effort.  I worked for it. Likewise others such as comrade Anura Kumara Dissanayake worked for it.  Besides, a whole lot of others who are lesser known to the country worked tirelessly at grassroots level. They call me Loku Ayya because I am the eldest within the party structure

Yours is a party that was opposed to the involvement of the International Monetary Fund (IMF) right from the beginning. Now, your party, which is in power, has vowed to proceed with the IMF programme.   Isn’t it ironic?

What we see are nothing but challenges. We did not inherit a country that was in good shape to be governed.  We inherited a country that is bankrupt and finds it difficult to settle huge debts accumulated over the years. It is a country that struck a deal with the IMF on disadvantageous terms. It would have been better had we not struck a deal with the IMF to get out of the current abyss.  Now, there is nothing we can do because the agreement has already been signed. It is an agreement between Sri Lanka and the IMF. Whichever party is in power, the agreement has to be honoured. We cannot unilaterally abrogate it. If we do so, we will face serious repercussions.

Now, we have to deal with the IMF in accordance with the mandate exploring flexibility in areas where changes can be done. 

Do you have any plan in the future to come out of this IMF programme?

We have not given mind to it. That cannot be done now.  We have to move ahead with this agreement with some amendments if possible.  There is some form of economic stability now. We have to build on that.  Depending on its success in terms of expected economic growth, indigenous economic strengths and our debt sustainability, we can think of the next step in the future.

Now the National People’s Power (NPP) has formed the Government. The JVP is its core force.  How does the government’s role differ from that of the party?

The party only ensured the electoral victory.  Now, there is a government formed after an electoral victory. Both the party and the government are geared for the same objective.  However, the entire party machinery has not become part of the government.  It means there is one segment of the NPP not being aligned with the government.  They continue to engage in political work such as educational activities, organizational activities etc.  The JVP is also involved in its drive to increase membership.  It is absolutely essential for us.  The party machinery is needed to link the government with people.  The party’s role is important in ensuring public support to the government’s initiatives. The government needs human resources in discharging its functions.  The party has a role in building this human resource. The government and the party are not merged, but interlinked.

“In this region, India is our neighbour. It is difficult for us to forge ahead without friendly ties with India.  In our region, China is one of the most developed countries. We need help from China.  Then, problems may crop up because of rivalry between India and China. We are not party to it.  Ours is a free and open foreign policy. We are not aligned to anyone 

There were reports about the formation of a new mechanism to monitor and guide the government. How official is it?

It is not an official mechanism, but a voluntary initiative. It will involve a large number of MPs who do not hold ministerial responsibilities in our government.  Among them are MPs with different talents and interests.  Earlier, we had ten committees that formulated policies covering areas such as economy, environment, education etc.  All of them who served in these committees are not in the government.  Some of them are not MPs. They too can be involved in this mechanism. That is a mechanism to ensure knowledge and expertise of others in running the government.  In parallel to the government, the party’s structure will operate from grassroots level to the top. 

In countries such as China, we find it. Yours is also party based on socialist policies. Is this a replication of the same?

This is based on socialist model for sure. Such systems exist in countries such as China and Vietnam.  We had it in Sri Lanka in the past.  For example, once Sri Lanka Podujana Peramuna (SLPP) won elections, the party and the government got merged and became inseparable.  The party lost its organizational structure that should otherwise remain independent of the government.  Once the government collapsed, it lost everything.  For us, power originates from people.  In the execution of power, there has to be a nexus between its centre and periphery.  The government’s structure, as usual, runs down to the level of Grama Niladhari. The political authority runs down to the local authorities. Simultaneously, we should have the party structure operating right down to grassroots level.

 In social media groups, you are referred to as Loku Ayya (Big Brother) by the party cadre.  You are also cited as the pioneer of this electoral victory. Are you the key figure behind success?

They may be doing so with affection towards me. There are exaggerations too. There is no individual staking claims for this (NPP) victory.   There is a limit to what I can do as an individual.  This is the end result of a collective effort.  I worked for it. Likewise others such as comrade Anura Kumara Dissanayake worked for it.  Besides, a whole lot of others who are lesser known to the country worked tirelessly at grassroots level.  They call me Loku Ayya because I am the eldest within the party structure.

 It means you are the senior most comrade?

No. Comrade Jinadasa Kitulegoda is there in the Central Committee of the party.  He has been there since 1971.  In the board of office bearers, I am the seniormost. All comrades call me Ayya. For them, I am more like the eldest brother of their family.  They lovingly call me Loku Ayya. Otherwise, I am not the sole spiritual leader-like figure.

As far as the foreign policy is concerned, there are concerns raised. Some countries believe whether yours will be following eftist policies.  There are concerns raised that you will lean more towards China and compromise ties with neighbouring India.  What is the actual policy?

Earlier, those who raise such concerns said that our party had no understanding of geopolitics and world politics. They now talk with a different tone in this manner. It is a twist of destiny for them. We are a party reading on and learning politics. We have an understanding of world politics and its contradictions. Ours is not a party relying on business deals with countries. In this region, India is our neighbour. It is difficult for us to forge ahead without friendly ties with India. In our region, China is one of the most developed countries. We need help from China. Then, problems may crop up because of rivalry between India and China. We are not party to it. Ours is a free and open foreign policy. We are not aligned to anyone. We are not servile to anyone. Therefore, we can have balanced ties with both India and China.  We seek to foster ties with Japan, Vietnam, the Middle-East and Europe. Likewise, we plan for ties with Africa. We have started bringing about changes in Foreign Service. Ours is not a leftist government, but a government of leftist, progressive, democratic forces.  

 There is a huge social media outcry about your participation in the ABBA Tribute Show at the Mount Lavonia Hotel recently. What is your response?

Actually, I am not keen on talking about it.  The forces that were defeated seek to cling to something or another. The Mount Lavinia Hotel handled it. The event was organised to promote tourism.  I, along with Prime Minister Harini Amarasuriya and Tourism Minister Vijitha Herath, was invited. There were others in the party who were invited. They came here to this office and handed it over to us.

If there is an invitation from an organization for an event, we are duty bound to attend it. If there is an invitation for a wedding, you participate in it. There was a table reserved for us. It is true that the ticket had been priced at Rs.50,000.  There had been tickets priced Rs.30,000, 15,000 and 7,500 too. We attended it. We enjoyed it. We are people with a palate for enjoyment.

There is speculation that you will step down as the party’s General Secretary to make way for Mr. Bimal Ratnayake to take charge. Is it true?

We have not taken such a decision. We are not here to be in positions forever. There is no need to change this position in a hurry. There is a tussle among social media groups running pages to increase views. They publish sensational news stories like this to gain attraction.

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ALSO NOTE

* https://en.wikipedia.org/wiki/Bimal_Rathnayake

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A Reading of the Sri Lankan Elections from THE ECONOMIST

Item in The Economist, 23 Nov 2024: “Sri Lanka’s Left Turn: Sri Lanka’s president with Marxist roots now dominates parliament too” .… with highlighting emphasis imposed by the Editor, Thuppahi

SRI LANKA was once a pioneer of free-market capitalism in South Asia. After J.R. Jayewardene took power with a super-majority in 1977, he introduced a French-style executive presidency and economic reforms that overturned the left-wing orthodoxy of the previous two decades. Cheered on by Western governments concerned about Soviet influence, Sri Lanka became the first country in the region to liberalise its economy.

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Burning Issues for the NPP Economic Team

Darshanie Ratnawalli, in The Island, October 2024 ... where the title reads ”The recent IMF visit and the new ‘economic team’

A new economic team, representing SL has gone into a meeting with the IMF. A President Media Division release dated October 2, 2024, says that the IMF visit was to hold discussions on the progress of the IMF programme and the release of the fourth tranche and that the following “economic team” has been appointed by the new government for discussions with the IMF.

This is the teamAnil Jayantha, Chair of the NPP Economic Policy Council & Senior Advisor to the President on Economic Affairs & Finance, Duminda Hulangamuwa, Senior Advisor to the President, Sunil Handunnetti, JVP Politician, Seetha Bandara Ranathunga, Sunil Gamage, Nandasiri Keembiyahetti, O. G. Dayaratne Banda and Amarasena Athukorala.

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Kenya: An IMF Lapdog in Serious Strife

A. K. L.  Steinbeck, …. with title and underlining imposed by The Editor, Thuppahi

WATCH =  https://x.com/DOmowale/status/1805701195366822364 …& … https://www.aljazeera.com/news/liveblog/2024/6/25/kenya-protests-live-deadly-anti-tax-protests-after-finance-bill-approved

ONE = Here, Kenyan protestors wreck Kenya’s parliament, setting fire to the building. About 20 protestors have been killed by police at a time when Biden refers to Kenya as “a major non-NATO ally,” after Kenya surrendered its sovereignty over to the IMF, World Bank, Western creditors, bankers, NATO and the CIA. 

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