- SLR regains ground
- ‘No Elections, no money’: Comrade Silva discovers the Wickremesinghe doctrine
The NPP Government is increasingly facing accusations of political double-speak over the long-delayed Provincial Council (PC) Elections, after contradictory statements from senior figures exposed growing confusion and perhaps deeper divisions within the Ruling Alliance itself.
Apparently, the controversy is between the NPP, which is the democratic Alliance that won the overwhelming support of the people at the two National Elections in 2024, and its powerful main stakeholder, the Janatha Vimukthi Peramuna (JVP). At the centre of the controversy stand two senior personalities of the Ruling Coalition, JVP General Secretary Tilvin Silva and the NPP General Secretary and Government Parliamentarian Dr Nihal Abeysinghe.
While Silva bluntly declared that PC Elections cannot be held in 2026, citing prevailing national circumstances and financial priorities, Dr Abeysinghe has simultaneously participated in discussions that indicate that the Government is still exploring ways to proceed with the Polls. The contradictory signals have strengthened suspicions that the Ruling Alliance itself remains undecided, or unwilling, to face PC Elections because of the decline of its voter base during the last one and a half years.
Silva stated the Government had diverted available funds toward urgent national needs including disaster relief, making PC Elections impractical for 2026. He also hinted that discussions on such Polls would only be possible in 2027.
However, Cabinet Spokesperson Dr Nalinda Jayatissa later contradicted this position by publicly stating that financial allocations for the Elections were already available and that the primary obstacle remained unresolved legal and electoral framework issues. He an evaded answer to the question whether Silva’s comment was untrue.
At the same time, Dr Abeysinghe’s involvement in meetings with political parties and stakeholders discussing possible mechanisms to hold PC Elections under either the old or revised system has projected a far more flexible stance than the rigid position articulated by Silva.
The result is a Government speaking in two voices. One voice says that Elections are impossible. Another says that preparations and discussions are continuing. Analysts believe that this contradiction reveals the real problem confronting the NPP-JVP administration, not merely legal complications, but a lack of political enthusiasm for PCs themselves.
The JVP historically opposed the PC structure established under the 13th Amendment to the Constitution following the Indo-Lanka Accord and initially boycotted them. Even today, influential sections within the Party remain skeptical about devolved Provincial governance, viewing it as an inefficient and externally imposed political arrangement. Silva himself previously described the PC system as “unsuccessful” in addressing Sri Lanka’s national issues.
This ideological discomfort appears to be resurfacing now that the JVP-led alliance holds power.
The NPP had earlier promised democratic reforms and repeatedly assured both domestic and international audiences that overdue elections would be conducted. Senior Minister Bimal Rathnayake had even suggested last year (2025) that PC Elections could take place within the first half of 2026 after resolving legal complications. Political realities may now be overtaking campaign promises.
PC Elections differ significantly from Presidential or Parliamentary Elections. Unlike National Elections driven by broad political narratives, Provincial contests often become direct referendums on the Government’s day-to-day performance.
Opposition parties and Tamil political groups increasingly suspect that the Government fears electoral setbacks, especially in Provinces where regional and ethnic issues dominate the political discourse. Some Tamil leaders openly claim that the delay reflects anxiety within the Ruling Coalition over growing public dissatisfaction.
The Election Commission has already informed Parliament that it is prepared to conduct the PC Polls under any electoral framework approved by the lawmakers. This effectively weakens the argument that administrative readiness is the central obstacle.
The prolonged absence of PCs has already created a democratic vacuum. All nine Provincial administrations continue to function under Governors without fresh public mandates, undermining the very principle of devolution embedded in the Constitution.
For the NPP Government, the issue is becoming politically sensitive. A movement that rose to power promising transparency, accountability and democratic renewal now risks appearing increasingly similar to previous Governments that postponed elections whenever politically inconvenient.
CBSL steps in to calm US $ panic
After weeks of turbulence and sharp depreciation against the US $, the Sri Lankan Rupee (SLR) has begun regaining strength, largely due to decisive intervention by the Central Bank of Sri Lanka (CBSL), which moved aggressively to restore confidence in the foreign exchange market.
The Rupee’s recent recovery follows a period of severe pressure triggered by rising global oil prices, increased import demand mainly due to vehicle imports, speculative $ buying and market anxiety linked to the Middle East (ME) conflict. At one stage last week, the $ climbing close to Rs. 354, sparked fears of renewed currency instability reminiscent of the 2022 economic crisis.
However, the CBSL swiftly intervened through a combination of monetary tightening, market guidance and behind-the-scenes “moral suasion” directed at commercial banks and foreign exchange dealers.
According to market reports, the CBSL instructed banks to stabilise spot exchange rates within a controlled range, helping reverse panic-driven trading. The SLR subsequently appreciated from the Rs. 331–348 range to around Rs. 325–327 within days.
The recovery reflects a familiar reality in Sri Lanka’s post-crisis economy: the exchange rate may officially float, but the CBSL still retains substantial influence over market direction.
Analysts say that the recent depreciation was driven not entirely by weak economic fundamentals, but also by sentiment and speculative behaviour. Importers rushed to secure $ amid fears of further depreciation, while exporters delayed conversions expecting the $ to rise further. This created a self-fulfilling cycle of panic demand.
The reopening of vehicle imports also intensified pressure on foreign exchange demand. A sudden surge in letters of credit for vehicle imports sharply increased $ requirements in the banking system, adding to currency volatility.
Faced with mounting pressure, the CBSL adopted a tougher stance. In a surprise move this week, the CBSL raised its key policy interest rate by 100 basis points, its largest rate increase since 2023, signalling that defending currency stability and containing inflation had become immediate priorities.
Currency dealers say that once traders sensed that the CBSL was prepared to intervene aggressively, speculative $ hoarding weakened. Exporters resumed $ conversions while importers temporarily reduced panic buying. This helped improve $ liquidity in the domestic market.
Nevertheless, economists caution that the SLR’s recovery remains fragile. Sri Lanka continues to face structural external vulnerabilities, including high fuel import costs, pressure on foreign reserves and rising import demand following economic reopening. The ME crisis has further complicated matters by increasing global energy prices and strengthening the $ internationally.
The immediate objective of restoring calm appears to have succeeded. For ordinary Sri Lankans, the SLR’s recovery offers temporary psychological relief after memories of runaway depreciation, shortages and inflation during the economic collapse remain fresh. Businesses too welcomed greater currency stability, particularly importers dependent on predictable exchange rates for pricing and inventory management.
The SLR may have regained strength for now, mainly due to $ 695 million received from the International Monetary Fund. But, sustaining that stability will require more than intervention alone. It will demand the careful management of imports, continued foreign inflows, export growth and disciplined economic policy — otherwise, the $ storm could easily return.
Political satire
Sri Lankan politics has achieved something once considered impossible.
The JVP, once famous for shouting against “bourgeois excuses”, has now successfully inherited the most sacred political philosophy of former President, attorney Ranil Wickremesinghe: “When elections become inconvenient, check with the Treasury first.”
For decades, the JVP thundered from stages accusing previous Governments of hiding behind technicalities, conspiracies and economic excuses to avoid facing voters. Today, history has performed a perfect political pirouette.
Now it is Comrade Silva explaining patiently to the nation that PC Elections are impossible because, sadly, there is no money.
Apparently, the country can import luxury sports utility vehicles, renovate Ministries, conduct endless seminars and print thousands of Government cut-outs, Elections suddenly threaten national bankruptcy. Wickremesinghe could go to the UK for wife’s convocation spending Treasury funds, but, no money for elections.
People are beginning to wonder whether Silva secretly inherited Wickremesinghe’s old speechwriter along with the Treasury deficit.
The transformation is astonishing.
In the old days: “No elections = authoritarianism.”
In the new era: “No Elections = fiscal discipline.”
Some are joking that Silva has finally completed his postgraduate degree in “Applied Ranilism.”
One popular joke shows Wickremesinghe smiling proudly beside Silva under the caption: “Student surpasses the master.”
If Elections are risky, declare economic patriotism.
Cold War inside the NPP?
Sri Lankan politics has once again gifted the nation a classic political comedy, this time starring two distinguished voices from the Ruling Alliance performing from entirely different scripts on the PC Elections.
First came Silva with “No PC Elections this year.” No money. Floods. Priorities. National difficulties. Case closed.
Enter Dr Abeysinghe. Unlike Silva’s “absolutely impossible” tone, Dr Abeysinghe appeared at discussions on PC Elections, sounding remarkably optimistic and cooperative. Suddenly Sri Lanka was left wondering whether the NPP Government operates with one Cabinet of Ministers or two parallel WhatsApp groups.
One group says: “Elections impossible.”
The other says: “Discussion continuing.”
Some are asking whether Dr Abeysinghe missed the Silva briefing.
Others suspect that Silva accidentally read next year’s script too early.
Meanwhile, conspiracy theorists are having a national festival.
Tea boutiques from Matara to Jaffna are buzzing with speculation: “Is there a clash inside the Ruling Alliance?” “Who is actually in charge?” “Did Dr Abeysinghe forget Party discipline?” “Or did Silva forget coalition diplomacy?”
The funniest part is that both camps insist that there is no contradiction whatsoever.
The Opposition, naturally, is delighted. They no longer need to attack the Government. Government leaders are now contradicting each other free of charge.
At this rate, the PC Elections may eventually become Sri Lanka’s newest archaeological project, frequently discussed, historically important, but never actually seen alive by younger generations.
The author is a freelance journalist
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The views and opinions expressed in this column are those of the author, and do not necessarily reflect those of this publication