• Sajith notes serious economic risk; public being misled with false stats

The main Parliamentary Opposition, the Samagi Jana Balawegaya (SJB), is awaiting a response from President Anura Kumara Dissanayake regarding their request to convene an all-party conference to discuss the country’s ongoing economic situation, including the depreciation of the Rupee.

Speaking to The Daily Morning yesterday (26), SJB General Secretary and Parliamentarian Ranjith Madduma Bandara said that all Opposition groups had recently met Opposition and SJB Leader Sajith Premadasa and jointly requested him to ask the President to convene an all-party conference. “We officially informed the President about the request for an all-party conference following discussions among all Opposition groups. However, we have not received a response yet.”

Attempts to contact the Chief of President's Staff, Prabath Chandrakeethi, the Leader of the House Bimal Rathnayake, and the Chief Government Whip Dr  Nalinda Jayatissa proved futile.

Earlier, Premadasa, in a social media post, said that the worsening economic uncertainty and the pressure on the Rupee should not be viewed as partisan issues. He said that the Opposition had decided to formally request the President to convene an all-party conference to discuss urgent national solutions.

The call for discussions comes at a time when Sri Lanka is facing a series of economic concerns, including exchange rate pressures, uncertainty in global markets, and frequent fuel price fluctuations linked to tensions and conflict in the Middle East (ME). 

Premadasa has warned that Sri Lanka is facing a serious economic risk, alleging that the Government is misleading the public with “false statistics” instead of revealing the true state of the economy. He made these remarks during a meeting with social media activists held at the headquarters of the SJB. Premadasa claimed that the Government, led by President Dissanayake, continues to conceal the country’s economic vulnerabilities while increasing the prices of essential commodities such as fuel and milk powder. He stated that rising fuel and milk powder prices are clear indicators of the prevailing economic crisis and stressed that the public must be made aware of the situation. According to internationally accepted economic standards, foreign reserves should be sufficient to cover at least three months of imports, Premadasa stated. 

He pointed out that although the President claims that the country has United States Dollars ($) seven b  in reserves, Sri Lanka spends approximately $ two b  per month, meaning that at least $ six b  is required to cover three months of imports. Premadasa further emphasised that the depreciation of the Rupee and rising fuel prices are reducing the country’s ability to maintain that level of reserves. Premadasa also claimed that although the reserves include Chinese Yuan worth 1.2 b , those funds are not readily usable, leaving only around $ 5.8 b  effectively available. Referring to fuel prices, he stated that the price of Octane 95 petrol had reached Rs. 470 per litre in 2022, while it is currently being sold at around Rs. 410 per litre. He warned that any further increase in global oil prices could push the country toward bankruptcy. 

He further said that although foreign remittances have increased in recent months, the ongoing conflict in the ME could destabilise regional economies and result in job losses for migrant workers, thereby reducing remittance inflows. He also warned that once Sri Lanka’s agreement with the International Monetary Fund (IMF) concludes in March of next year (2027), the country will lose the stabilising support provided by international financial institutions. Premadasa cautioned that a decline in remittances, combined with rising oil prices and further depreciation of the Rupee, could trigger a severe economic crisis. He further noted that Sri Lanka’s foreign debt repayments are expected to increase from $ 1.5 b  to $ 3.5 b  annually from 2028 onward, emphasising the urgent need to strengthen foreign reserves. 

According to Premadasa, the IMF has recommended that Sri Lanka maintain reserves of around $ 13.4 to 14 b , but that the country currently holds only around 50 per cent of that target. He added that Sri Lanka would need to increase reserves by approximately $ 600 m per month to reach the target, while current monthly reserve growth stands at only around $ 60 m.