The Free Lawyers Organization has issued a strong warning that proposed bail provisions in the Anti‑Corruption (Amendment) Bill pose serious threats to fundamental rights and will worsen Sri Lanka’s already dire prison overcrowding crisis.

In a statement, the group expressed deep concern over amendments to Section 149 of the Anti‑Corruption Act, No. 9 of 2023. The Bill makes all offences under the Act cognizable and non‑bailable, with bail permitted only by the High Court in exceptional circumstances when offences involve bribes of Rs. 100,000 or more, or corruption causing losses or benefits of Rs. 500,000 or more, certified by the Director‑General.

The organization argued that these provisions severely restrict the discretion of Magistrates’ Courts, place substantial power in the hands of the Director‑General at the investigative stage, and create a presumption against liberty from the outset. They warned that the principle that bail should be the rule and jail the exception is effectively reversed, undermining the presumption of innocence and the constitutional right to personal liberty under Article 13.

If enacted, the amendment could lead to prolonged pre‑trial detention of large numbers of individuals, many of whom may ultimately be acquitted or face years‑long trials. This, the group cautioned, would further inflate the remand population and expose more people to inhumane prison conditions, raising concerns under the right to freedom from cruel, inhuman or degrading treatment.

The warning comes against the backdrop of severe prison overcrowding. Data obtained by BBC Sinhala under the Right to Information Act revealed that as of July 4, 2026:

• Welikada Prison: capacity 839 — held 3,400 inmates
• Colombo Remand Prison: capacity 328 — held 2,782 inmates
• Magazine Prison: capacity 499 — held 3,046 inmates
• Negombo Prison: capacity 496 — held 2,403 inmates

Further unrest at Mahara Prison on August 1 highlighted the crisis, with more than 4,100 inmates held. A National Audit Office report published on August 3 identified delays in Government Analyst reports and detention of inmates unable to pay small fines as major drivers of overcrowding. It also warned that mixing drug‑related inmates with others has fueled underworld activity inside prisons.

The Free Lawyers Organization urged Parliament to withdraw or substantially amend the proposed bail provisions, stressing that anti‑corruption measures must be proportionate, rights‑compliant, and realistic about prison capacity.

The group also appealed to the UNDP, European Union (JURE project), Asian Development Bank, Government of Japan, and other partners to examine the human‑rights implications of the proposed bail regime, engage the Government on clearing the backlog of Analyst reports, end detention for minor fine defaults, and ensure reforms remain consistent with international standards.

“Effective action against corruption is essential,” the statement concluded. “It must not be pursued through measures that endanger lives, undermine fundamental rights, and ignore the proven administrative failures of the prison system.” (Newswire)

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The Joint Opposition has raised concerns over the Government’s proposed Anti‑Corruption (Amendment) Bill, warning that strict bail provisions could undermine fundamental rights and worsen Sri Lanka’s already dire prison overcrowding.

In a statement issued today, the Opposition highlighted Clause 17, which seeks to amend Section 149 of the Anti‑Corruption Act, No. 9 of 2023. The amendment would make all offences under the Act cognizable and non‑bailable, with bail denied except in exceptional circumstances by a High Court when offences involve bribes of Rs. 100,000 or more, or corruption causing losses or benefits of Rs. 500,000 or more.

The Opposition argued that the provisions severely restrict judicial discretion, erode the presumption of innocence, and violate the constitutional right to personal liberty under Article 13. They warned that the changes would expand non‑bailable offences, prolong pre‑trial detention, and expose more suspects to inhumane prison conditions.

Citing Right to Information (RTI) data published by BBC Sinhala on August 2, the statement noted that major prisons are operating at three to five times capacity. For example, Negombo Prison held 2,403 inmates against an approved capacity of 496, while Welikada, Colombo Remand, and Magazine Prisons were similarly overcrowded. The Opposition linked these conditions directly to the deadly Negombo Prison riot on July 5–6, which left 28 dead, and unrest at Mahara Prison on August 1.

The Joint Opposition demanded that the Government withdraw or amend Clause 17, stressing that anti‑corruption measures must be proportionate and rights‑compliant. 

They also appealed to international partners including the UNDP, EU, ADB, and Government of Japan to examine the human‑rights implications of the proposed bail regime and ensure support for reforms consistent with international standards.

“Effective action against corruption is essential,” the statement concluded. “It must not be pursued through measures that endanger lives, undermine fundamental rights, and ignore the proven failures of an already overcrowded prison system.” (Newswire)

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A high‑level discussion on the functioning of the Internal Affairs Units established within state institutions and the implementation of the National Anti-Corruption Action Plan 2025–2029 was held at the Presidential Secretariat recently (29).

The meeting, held under the patronage of the Secretary to the President, Nandika Sanath Kumanayake, focused on advancing Sri Lanka’s anti-corruption efforts, particularly within key revenue-generating and revenue-collecting institutions, namely the Sri Lanka Customs, the Inland Revenue Department, and the Department of Excise.

According to the President’s Office, during the discussion, the measures currently being implemented to strengthen anti-corruption initiatives and foster a culture of integrity within these institutions were reviewed. 

Attention was also given to future initiatives aimed at further reinforcing ethical governance and promoting a stronger culture of integrity across these organisations. (Newswire)

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The Government of Japan has extended a grant of US$ 2.5 million to Sri Lanka to support a three-year project aimed at strengthening anti-corruption mechanisms and promoting transparency and accountability in public governance.

The project will be implemented with the assistance of the United Nations Development Programme (UNDP) and is designed to enhance institutional capacity to combat corruption, improve transparency in public administration and investments, and ensure effective prosecution and public accountability.

A formal agreement was signed this morning at the Japanese Embassy in Colombo between Japanese Ambassador to Sri Lanka, Akio Isomata, and UNDP Resident Representative Azusa Kubota, in the presence of Minister of Justice Harsha Nanayakkara.

The initiative will focus on strengthening governance mechanisms to prevent institutional corruption, enhancing investigation procedures, improving coordination among stakeholders, empowering citizens, and reinforcing the quality of legal actions related to corruption cases. The project also seeks to promote civic engagement in anti-corruption efforts, particularly among youth, media professionals, and children.

Key government officials, including Attorney General Parinda Ranasinghe, Presidential Secretary Nandika Sanath Kumaranayake, Justice Ministry Secretary Ayesha Jinadasa, and Commissioners of the Commission to Investigate Allegations of Bribery or Corruption, as well as representatives from the Japanese Embassy and UNDP, were present at the signing ceremony. (Newswire)

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Since assuming office, the current government has taken decisive steps to free the process of combating bribery and corruption from political interference, President Anura Kumara Dissanayake said today.

He emphasised that while the political mechanism has been liberated from engaging in such crimes, it is now the responsibility of the administrative machinery operating beneath that political structure to fall in line and correct its course without delay.

Explaining that a grace period of six months has already been provided for the state officials to adjust to this new direction, the President warned that if the public service mechanism fails to act appropriately within this period, the government will not hesitate to take firm legal action against those officials from May onwards.

President Dissanayake expressed these views today (09 Apr), while participating in the launch of the National Anti-Corruption Action Plan 2025–2029, held at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo.

The President pointed out that bribery and corruption have destroyed the dignity and values of Sri Lanka’s state administration and caused the nation to fall behind for decades in the eyes of the world. He reiterated that enforcing the law against these crimes is not an act of political revenge but a profound human responsibility.

He observed that over the past six months of the present government, no section of the public service has been allowed to collapse and that if officials continue to resist change, the government will proceed to remove and replace them after May.

The President stressed the need to build a society that respects the law and fears wrongdoing, adding that conducting lectures or workshops alone would not suffice in achieving this goal. He emphasised that people must practically witness that any person who commits a crime will be subjected to punishment under the law.

President Dissanayake noted that corruption in Sri Lanka ranges from minor bribery, such as obtaining medicine through corrupt means at a rural dispensary,  to grave financial crimes like looting the Central Bank. He stressed that although corruption may appear to start small, it has expanded to deeply inhumane levels. 

He further accused previous rulers of safeguarding and protecting those engaged in corrupt activities, allowing such practices to spread from village-level institutions to the highest financial institutions in the country.

He also revealed that within several state administrative institutions and even among certain bodies responsible for enforcing the law, criminal networks consisting of organised corrupt officials and underworld elements have been operating, creating systemic webs of theft and fraud. He confirmed that these criminal networks have already been identified and assured that measures will be implemented in the future to dismantle and eliminate them.

President Dissanayake solemnly pledged that the responsibility of eradicating bribery and corruption will not be passed on to the next generation but will be resolved within this generation itself, under the leadership of the present government.

Drawing a comparison with India, which gained independence a year before Sri Lanka, the President noted that through a consistent national policy framework, India has successfully achieved space exploration and built a massive workforce in the software industry. In stark contrast, he pointed out that Sri Lanka, due to poor decisions made by its political leadership, was declared a bankrupt state in 2022.

He further stated that the current government has taken on the responsibility of leading Sri Lanka towards the international stage through a national policy framework that ensures transparency and accountability for every rupee spent from public funds.

The President added that by implementing this framework, it is possible to build public trust in law enforcement and judicial institutions and that it must be made clear to the people that there will be no mechanism available for anyone to escape the law after committing a crime.

He stated that the purpose of the National Anti-Corruption Action Plan 2025-2029 is to guide the country towards becoming a nation of integrity. The government plans to establish internal control units within all state institutions, under the leadership of the Presidential Secretariat and implement a system for monitoring these units through digital technology to ensure accountability and transparency.

The Action Plan has been designed around four key strategic priority areas: prevention and education, public participation, institutional strengthening and the enforcement of law along with reforms in law and policy.

The President highlighted that eliminating bribery and corruption is one of the most decisive factors in a country’s development and progress. In Sri Lanka, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has been identified as the leading state institution entrusted with strengthening this mechanism.  

In preparing this Action Plan, CIABOC engaged all relevant stakeholders by conducting extensive programmes at both national and provincial levels. A broad public consultation process was carried out, including a comprehensive survey to assess public opinion on corruption through media announcements in all three languages and via social media networks.

This process gathered proposals from a diverse range of participants, including Members of Parliament, judges, state officials, the private sector, international organisations, civil society organisations, community-based organisations, religious groups, persons with special needs, media professionals, youth, children and the general public. Additionally, foreign state experiences and suggestions from various groups across all provinces were taken into consideration when formulating the Action Plan.

By implementing this National Anti-Corruption Action Plan, the government hopes to foster a committed citizenry determined to combat corruption, a political will fully supportive of this effort, a comprehensive legal framework and a disciplined, transparent public service across all sectors, with the shared vision of building a country of integrity for future generations, he said.

Addressing the event, the Ambassador of Japan to Sri Lanka, Akio ISOMATA stated that Corruption remains a great challenge for many countries, including Sri Lanka, as it undermines economic growth, weakens public trust in government institutions and discourages foreign investment. However, he noted that due to the reform initiatives of the present government, investors are once again showing increasing interest in Sri Lanka.

Ambassador ISOMATA further stated that Japan has always believed that transparency and good governance are fundamental pillars for sustainable economic development and therefore, has supported anti-corruption initiatives globally for over a decade.

Meanwhile, the UNDP Resident Representative in Sri Lanka, Ms. Azusa Kubota, stated that according to Sri Lanka’s first-ever National Taxpayer Perception Survey conducted last year, 84% of respondents indicated that corruption directly affects their willingness to pay taxes.

She further noted that corruption deters investment, increases the cost of doing business, undermines sustainable development and human security, and causes an estimated annual loss of USD 1.3 trillion for developing countries.

Referring to the Budget Speech delivered by the President, Ms. Kubota emphasised that the State must be accountable for every cent of taxpayers’ money and stated that this Action Plan would serve as a roadmap for transforming Sri Lankan society.

The event was attended by the Chief Justice of the Supreme Court, Justice Murdu Nirupa Bidushinie Fernando; the Attorney General, Parinda Ranasinghe PC; the Secretary to the President, Dr. Nandika Sanath Kumanayake; the Chairman of CIABOC, former High Court Judge Neil Iddawela; the Director General of CIABOC, R.S.A. Dissanayake; the Commanders of the Tri-Forces; the Inspector General of Police; senior officials from the security forces and a large number of state officials. (Newswire)

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President Anura Kumara Dissanayake has warned that steps will be taken to make changes to corruption-tainted state institutions and their heads after May this year, in a bid to intensify efforts to eradicate corruption.  

President Dissanayake said that after assuming power, the government gave three months for state institutions to curb corruption, and that period has now extended to 06 months.

“We have been waiting for the last six months, providing a period for change. If they are not prepared to change, then they will be changed, starting this May. As expected by the public, as the head of the state, it is only right for me to provide the necessary time for change. But if there are no changes, then the change will be made,” he warned. 

President Dissanayake further said that it is the government’s responsibility to eradicate corruption and not allow it to spread to the next generation.

He pointed out that a serious issue has arisen due to the practice of corruption being rampant all the way upto institutions that are vested with powers to initiate action against bribery or corruption. 

“Politicians, public service officials, Police officials, and businessmen are all engaged in corruption at present. Businessmen who own businesses but convert black money are the ones who have emerged as millionaires and billionaires in the recent past. They dominate several organizations, holding key positions. This network also consists of underworld figures. This has resulted in doubts among the public on the credibility of institutions vested with powers to initiate the law against corruption,” the President said. 

President Anura Kumara Dissanayake made the statement while launching the ‘National Anti-Corruption Action Plan 2025-2029’ today. (Newswire)

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The Cabinet has approved the proposal by the President to pass the anti-corruption agenda as the National Agenda for the government on anti-corruption and order all authorities to act according to the said agenda. 

Since assuming power in July 2022, the incumbent government’s key objective has been the enhancement of the governing system, eradicating corruption, re-establishing the state finance and sustainability of credits and revival of the economy. 

As such, the foundation for the National Agenda for Anti-Corruption has been prepared by empowering the Anti-Corruption Act No. 9 of 2023 by amalgamating the Anti-Corruption Act (Authority 26), Bribery and Corruption Commission Act No. 19 of 1994 and Assets and Liabilities Statement No. 1 of 1975 to empower the international standards and disciplines such as provisions of the United Nations Convention on Anti- Corruption and standards of the Financial Action Task Force. 

Furthermore, the activities to prepare the draft bill on properties earned from crimes are in the final stage. 

Therefore, in par with the report of the legal, organizational and strategic framework for anti-corruption mentioned in the International Monitory Fund’s governing judgmental evaluation’s technical assistance, the following have been recognized as main active items of the agenda on anti-corruption.

• Empowering the Anti-Corruption Act No. 9 of 2023  
• Development of a national anti-corruption plan for the period of 2025 – 2029  Amendment of the National Audit Act No. 19 of 2018  
• Establishment of an assets statement and a conflict of interest procedure with productivity and transparency.  
• Introduction of new methodologies for acting in relation to receipts earned from crimes and money laundering.  
• Strengthening case investigation and case filing activities relevant to corruption.  Introduction of amendments to the Companies Act No. 07 of 2007 and taking other applicable measures so that the legal framework on meaningful ownership can be strengthened.  
• Empowering a state procurement law ensures the transparency of the state procurement. 
• Declaring all companies that receive tax relief through the Strategic Development Project Act No. 14 of 2008 and across the Board of Investment.  
• Suspension of Strategic Development Projects Act No. 14 of 2008 until a clear and transparent process for evaluation of investment promotion conditions costing and proposal evaluation is declared. 
• Implementation of a reformation policy of entrepreneurship that is under the government.  
• Initiation of short-term anti-corruption procedures within each revenue department.  
• Establishment of a new management methodology for the Employees Provident Fund.  
• Amendment of laws, regulations and procedures applicable to the supervision of the finance division in the banking sector.
• Empowering the Judiciary Service Commission.  
• Strengthening the right to information. (Newswire)

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Gazette notifications have been issued on the Anti-Corruption Act and the Assistance to and Protection of Victims of Crime and Witnesses Act. 

The Gazettes were  issued by the Minister of Justice, Prison Affairs, and Constitutional Reforms Wijeyadasa Rajapakshe this week.

The Extraordinary Gazette notification on the Anti-Corruption Act states it will take effect from September 15, 2023. 

The Gazette on the Assistance to and Protection of Victims of Crime and Witnesses Act will also be effective from September 15, 2023. (NewsWire)

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The necessary steps will be taken to pass the best anti-Corruption Act in South Asia in Parliament soon, President Ranil Wickremesinghe said on Thursday (23).

According to the President’s Media Division (PMD), the President revealed that Cabinet approval for the Bill has already been granted, adding that he will discuss it with the Opposition representatives in the future and present it to the Parliament. 

President Ranil Wickremesinghe made the remarks during a discussion held at the Presidential Secretariat yesterday (23) with the heads of media organizations. 

Full statement:

President Ranil Wickremesinghe said:

Firstly, let me thank everyone in the media for your presence here today. As you know I have requested all of you to be present here to tell you about the IMF agreement. 

We became a bankrupt country a year ago. This is the first time we have had to restructure our debt with the support of the IMF and our creditors. 

And this is the first occasion we’ve had to restructure our debt with the support of IMF and our creditors. This is only the beginning. Once we’ve got the support, the financial assurances, it means that we are no longer considered a bankrupt state. We have to go to the next stage, which is to negotiate with all our creditors with the multilateral creditors, with the bilateral creditors and the most difficult of all, the private creditors. 

Now that stage only once we concluded it that we will be in a position to go ahead without having to look back and with confidence. So this is not the end. This is, in a sense, only the beginning. Next is the negotiations with the creditors. And just as much as you are negotiating the creditors, we also have a four year programme. This is why I’ve asked Parliament to give me approval to approve this agreement. I don’t require it by law, but to have parliament voting for us for this agreement will strengthen us. The country has already voted for it. I think that from the reactions I have and, I would like to get the assistance of parliament. 

It’s also necessary to show the creditors that the country has accepted the principle which is included in this IMF agreement. 

So firstly, it’s a restructuring of the debt but is not limited to restructuring of the debt it’s restructuring of our economy.

Firstly, we have financial stability. Once we go through this process, we are increasing our revenues. 

This is the most difficult era and we will stabilise government spending as they will explain the character of government spending and the income we have. But this will ensure that we have a surplus in the primary budget and increase revenues. 

We are aiming at much better control of the government budget. And it’s not only that goal we are going to achieve, if we put our finances in a better condition. 

But also we have to remember that the structural reforms we do will enable us to have a growth enhancing economy. We will liberalise further. There are those who think liberalisation is not a good word, and we will open it out for foreign investments. We are also looking at different areas of investment additional foreign investment in manufacturing. But it means we have to go up to the higher, end. 

Responding to a question raised by a media person about how long it will take to pay off this debt for the country to move to a middle-income country in 10 years, the President stated that the first task is to approve this agreement and then proceed to restructuring the debt and the method of paying off the debt will be known only then. 

Secondly, modernising agriculture and fisheries. Thirdly, making Sri Lanka a Regional Logistic Centre, certainly upgrading and expanding, tourist, digitalized economy, the green economy. So we are moving towards the new Sri Lanka.

 My aim is, though most of us won’t be there by then, when we are in 2048 when 25 years have passed that we will be a high middle income country. 

We can’t go on with economic stagnation, we can’t go on with low growth. We must remember that all the upheavals we had in the country relates back to this issue. We have had one in 1971, which related to unemployment and 1983 was not merely one of language but that the Tamil youth had no employment. The same in 1989. So we have had too much the, economic situation. The absence of growth has resulted in instability and bloodshed. 

Now we have the opportunity of starting out a new, so it’s a historic process. What I’d like you is to, support us in this venture, the officials will be available to speak to any media personnel at any time to discuss what’s happening. But the future of Sri Lanka rests on whether we go ahead with this agreement or not, whether we implement this agreement or not. 

If we don’t do it, we will be cursed by the future generations. 

Let us first approve this agreement as the first task and then move on to restructuring the debt. Only then will we know how to repay the debts. We have not completed out programmes. Why have we not completed it? Because it came under political influence. If not, it came under public influence. It was the media that created public opinion. This time I urge the media to assist us in making this programme a success. 

Not just that, when the MCC was presented they alleged that the country was to be divided. When the IMF was introduced, they said we were going to be dominated by the West. So it is difficult for us to do all this. That is why the media organizations were asked to join in making the 17th International Monetary Fund program a success. This process is very difficult. We all feel it. This is a four-year process. It will end in 2026. Those who were with me over a long period and supported these policies are now speaking against me. So is it a big thing for those who were against me to support me? We must remember one thing. We are in a difficult place now. We can’t play the old games again. If we do that, we will fall again. Let’s forget the old games and the past and move forward. 

We all made mistakes. At least now agree with this and support us. This money we received will be used to pay the salaries this month. It’s not stealing. These were lost because of the allegations of theft. Don’t spread such stories. These people who point fingers steal more than this. My salary is lower than those of you here. We need to change attitudes. 

They accused me of coming to protect thieves. But we are bringing the best anti-corruption bill in South Asia in consultation with the IMF. The opposition’s shouting did not bring anything. The Minister of Justice is also discussing this with the opposition. 

We presented this to Parliament to get the support of all parties. No one can oppose this. Some new laws have also been introduced. We have taken several new steps. 

We do not want to suppress the media. I hear the most criticism from the media. I also lost the media. I am the one who removed the criminal law imposed on the media. I was the one who gave the right to know the information. Independent commissions were brought to Parliament three times. So how do I suppress the media? 

They ask to solve the Tamil problem. But while I was doing those things, they said that I was trying to get rid of the other problems together with Mr. Sumanthiran. No one in the media said that the accusation was not good. I have said before that we are working to solve the national problem. No media objected to it. 

Everyone agreed to that in the parliament. Don’t create racism under the guise of it. One media organization is running a racist programme. The same thing was aired for four days. What would happen if someone attacked one Tamil person during that time? 

It is okay to show protests against the government, but the protests should be shown as protests. And it should be shown that there is another side to it.

Not all people got onto the streets for the protest. There are instances where the same team went around the country. That is why I say, report both sides in a protest. I didn’t say don’t report on protests or post only those that praise me. 

Why is the government in business? It is not the government’s job. During Mr. D.S. Senanayake’s time, nothing of this sort happened. But the country had money. Back then, the country had money to lend to England and build the Galoya project. 

Now we are asking for money from China to build Moragahakanda. Which country has a law saying that government institutions should engage in business? 

We are aiming to develop rapidly as a normal country. Only we as a country say that the state should engage in business. The government exists to maintain law and order and solve the problems of the people. Today, do we have a good education system? We have paid more to the petroleum corporation than for education last year. The electricity board has been paid more than for education. During Mr. D.S. Senanayake’s Premiership, none of these happened. When the private sector does business, the government collects taxes. Who owns the telecom in England? The private sector. It is the same in France and America. We should develop in the same way, or we could fall like North Korea. You tell me which one you prefer. 

Expressing his views Minister Bandula Gunawardena said; 

This is considered to be the first step taken to recover from the situation that the country has been in for a while, by reaching a basic agreement with the International Monetary Fund. We had ships coming with oil in the past, but we did not have dollars to pay for it. There was also a power cut. Even though the gas ships came, there were no dollars to buy the gas. Due to lack of fuel, people had to stand in queues for two or three days. This difficulty arose because of the long-term budget deficit in our country and the lack of sufficient government revenue to meet the expenditure. There was an unaffordable budget gap like never before experienced in the history of Sri Lanka. We have borne all the expenses under two methods under the budget gap. 

We borrowed domestically and internationally. Money was printed as the loans obtained was insufficient. No matter who came to power, each of these governments continued to borrow. Finally, in order to obtain foreign loans, they had to go to the open market and borrow at higher interest rates by issuing sovereign bonds, away from concessional channels such as the International Monetary Fund, the World Bank, and the Asian Development Bank. Eventually, it turned into a bankrupt country that could not pay its foreign debt installments and was unable to meet the huge payments.

Organizations like Fitch Rating and Moody’s, which guide the settlement of international transactions, had cast our country to a very low level. As we had hit rock bottom, we became unable to issue letters of credit to import the goods we needed. Therefore, especially in a situation where the import of fuel is increasing by US$ 5 billion or more per year, the necessary suppliers stopped supplying us with goods. 

A letter of credit by Sri Lanka required a third party guarantee. Because of that, the banks of other countries had to pay additional fees for providing guarantee certificates to the importers of our country. 

If for some reason this agreement could not be signed, no matter which government would come to power, we will not be able to issue a letter of credit and import fuel, fertilizer, gas or fuel that the country needs. 

According to the agreement program we prepared, we have been able to change this situation and restore international credibility. The biggest problem now is that we have not restructured the debt pile of more than 50 billion US dollars. As the Opposition says, it is difficult for us to provide that money. 

The country received 1.4 billion US dollars from the Port City project. Hambantota Port was sold for 1.4 billion US dollars. If we take these two main projects, only 2.8 billion US dollars have been received. We can’t bridge that gap when we have to pay more than 50 billion dollars. Together with the Central Bank and the Ministry of Finance, the Government decided to get expert knowledge to restructure the debt from France’s Lazard Company and the Clifford Chance Company is handling the litigation because the debt cannot be paid. The country is in such severe national danger. We need to find an answer to the real economic situation in this country. Scholars in the country should explain this. This is now the last chance. 

We have signed 16 agreements with the IMF previously. It has not been possible to finalize anything that was agreed upon. Now after completing all the activities, this relief was obtained. The President personally intervened in this to a large extent. Government decisions may not be popular. The President has always told the Cabinet that unless difficult decisions are taken, there is no country or future. All these agreements were presented to the Parliament without hiding anything. If there is any other option other than this, then someone should present it to the parliament. It also saves the government a lot of money. In that case, we won’t have to pay the French company Lazard. If there is someone who can give us a better option to get out of this debt, then we can implement it. This is a more complex problem than we think. So, help us to publicize this issue in a fair manner. 

Central Bank Governor Dr. Nandalal Weerasinghe also expressed his views;

If the debt was not restructured, we would have had a foreign debt burden of 06 billion dollars per year for many years. Because it is difficult to pay, the debt payment is temporarily suspended and this process is used to restructure the debt. We are unable to pay under the current terms, so we are asking the commercial institutions and private sectors and the respective governments that have granted us loans, to give us a relief period. 

The first step in that process is the assurance given by the bilateral countries. The International Monetary Fund has set targets for debt sustainability. In order to reach that sustainable level, each country has given an assurance that they will support us. 

The next step is to negotiate according to that guarantee and request that we cannot pay the debt at the rate of 06 billion per year at this moment, but to give us a long term payment plan with a relief period. 

We have a responsibility to repay the loans we borrow, otherwise lenders may refuse to lend to us in the future. It’s important to note that we are currently facing difficulty in paying off our debt, and as a result, we have been given an opportunity to repay in a more flexible and concessional manner rather than defaulting on the payment. 

As an example, suppose we currently have a debt of 50 billion that we are supposed to repay in 10 years. In this situation, we may request a longer repayment period of 20, 30, or more years to make it easier for us to pay off the debt. 

The current discussion centers around the fact that we cannot allocate more than 4.5% of our GDP per year towards debt repayment. Therefore, it is being proposed to reduce the debt repayment amount to meet this target, and to extend the repayment period over a longer timeframe. The ultimate goal is to make the debt repayment manageable and sustainable for our financial resources. 

It should be noted that there is a possibility of taking new loans in the current situation. In particular, one of the loans being considered is from the International Monetary Fund (IMF). However, it is important to highlight that this proposed loan would be a long-term, concessional loan with a low interest rate, provided by organizations such as the World Bank or the Asian Development Bank, rather than a short-term loan from the market. Such loans have a different nature than commercial loans and would not necessarily affect the sustainability of our existing debt. As such, there would be no obstacle to taking such a loan if deemed appropriate.

Minister of State for Finance Ranjith Siyambalapitiya, Minister of State Dilum Amunugama, Senior Adviser to the President on National Security and Chief of Presidential Staff Sagala Ratnayake, Secretary to the President Saman Ekanayake, Secretary to the Ministry of Finance Mahinda Siriwardena, Secretary of the Ministry of Media Anusha Palpita, Governor of the Central Bank Dr. Nandalal Weerasinghe, Director General of Presidential Media Dhanushka Ramanayake, Director General of the Government Information Dinith Chinthaka Karunaratne and heads of media organizations were present on this occasion. (NewsWire)

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The Cabinet of Ministers has granted approval to publish the Anti-Corruption draft Bill on the government gazette notification.

Approval has also been granted to present the Draft Bill to the Parliament for its approval.

The government stated that approval of the Cabinet of Ministers was granted at their meeting held on 18.07.2022 for the preparation of the Anti-Corruption draft bill. 

Clearance of the Attorney General has also been granted for the said draft bill prepared by the Legal Draftsman. 

Accordingly, approval of the Cabinet was granted for the proposal submitted by the Minister of Justice to publish the draft bill on the government gazette notification and present it to the Parliament for approval. (NewsWire)

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