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IMF completes 1st review of EFF, enabling disbursement of US$337 mn.

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The Executive Board of the International Monetary Fund (IMF) has completed the first review of the 48-month Extended Fund Facility (EFF) arrangement for Sri Lanka.

The completion of the first review allows for an immediate disbursement of around US$337 million, bringing the total IMF financial support disbursed so far to about US$670 million.

Following the Executive Board discussion on Sri Lanka, Mr. Kenji Okamura, Deputy Managing Director has issued the following statement :

“Macroeconomic policy reforms are starting to bear fruit and the economy is showing tentative signs of stabilization, with rapid disinflation, significant revenue-based fiscal adjustment, and reserves build-up.

“Performance under the EFF-supported program has been satisfactory. All quantitative performance criteria for end-June were met, except the one on expenditure arrears. All indicative targets were met, except the one on tax revenues. Most structural benchmarks were either met or implemented with delay by end-October 2023. The publication of a Governance Diagnostic Report, the first in Asia and a structural benchmark under the program, is a commendable first step towards addressing deep-rooted corruption weaknesses. Continued commitment to improving governance and timely implementation of the report’s recommendations can deliver tangible economic gains to all citizens.

“Sri Lanka’s agreements-in-principle with the Official Creditors Committee and Export-Import Bank of China on debt treatments are consistent with the EFF targets. They are an important milestone putting Sri Lanka’s debt on the path towards sustainability. A swift completion and signature of the Memoranda of Understanding with the official creditors is important. Timely implementation of the agreements, together with reaching a resolution with external private creditors on comparable terms, should help restore Sri Lanka’s debt sustainability over the medium term.

“To ensure a full and swift recovery, sustaining the reform momentum and strong ownership of reforms is of paramount importance. Key priorities include advancing revenue mobilization, aligning energy pricing with costs, strengthening social safety nets, rebuilding external buffers, safeguarding financial stability, eradicating corruption, and enhancing governance.

“Reinforcing the revenue-based fiscal consolidation supported by revenue administration reforms is critical to recover from program slippages and promote a break from past policy shortcomings.

“The Central Bank of Sri Lanka should continue to focus on the multi-pronged disinflation strategy to safeguard the credibility of its inflation targeting regime. Accumulating reserves, supported by exchange rate flexibility, remains an important priority under the EFF.

“Implementing the bank recapitalization plan and strengthening financial supervision and crisis management framework are crucial to safeguard financial sector stability.

“Further strengthening the social safety net and protecting social spending remains critical to safeguarding the poor and vulnerable.’’

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International Day of Yoga 2025 marked in all Ayurveda hospitals in SL (Pics)

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The Department of Ayurveda, under the Ministry of Health of Government of Sri Lanka and the Swami Vivekananda Cultural Centre (SVCC), the cultural arm of the High Commission of India in Colombo jointly organised International Day of Yoga (IDY) celebrations today (June 19) from 8:30 AM to 9:30 AM, across the island. 

In a historic first, this IDY event was simultaneously held in 113 Ayurveda hospitals, including teaching and research institutions across all nine provinces of Sri Lanka along with four universities, which also joined this landmark initiative. In addition to this island-wide observance, the main 11th IDY 2025 event will be held on Saturday, June 21, 2025, at 6:30 AM at Independence Square, Colombo, organised by the High Commission of India in Colombo. Simultaneous celebrations will also take place in Jaffna, Kandy, and Hambantota, led by Indian diplomatic missions in these regions, further amplifying the spirit of yoga across the country.
The Department of Ayurveda under the Ministry of Health of Government of Sri Lanka is a key government institution responsible for the promotion, regulation, and preservation of Ayurveda and traditional indigenous medicine in Sri Lanka. As part of its ongoing commitment to holistic health and well-being, The Department of Ayurveda promotes Yoga as a vital tool in Ayurvedic healthcare delivery, education and research.

This collaborative celebration with SVCC marks the first time that the entire network of Ayurveda institutions in Sri Lanka participated in the International Day of Yoga, in a unified manner. The SVCC extended generous support by providing yoga mats, instructional books, and curated video contents to all participating centres to facilitate the event.

This island-wide event underscored the growing global recognition of Yoga as a powerful tool for physical, mental, and spiritual well-being, while also strengthening the traditional healthcare ties between Sri Lanka and India.

The theme of IDY 2025 “Yoga for One Earth, One Health” reflects the profound connection between individual well-being and the health of our planet. Yoga, as an ancient practice rooted in harmony between mind, body, and nature, promotes a sustainable and balanced lifestyle essential for global health and environmental consciousness. This universal message was powerfully endorsed by the Prime Minister of India Shri Narendra Modi, whose historic proposal at the United Nations General Assembly in 2014 led to the declaration of June 21st as the International Day of Yoga. Since then, Yoga Day has become a global movement, inspiring millions across the world to embrace yoga as a way to cultivate inner peace and collective well-being.

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Dates announced for Kandy Esala Perahera

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This year’s Esala Perahera of the Sacred Temple of the Tooth Relic in Kandy is scheduled to commence on July 25, Diyawadana Nilame (Chief Custodian of Sri Dalada Maligawa) Pradeep Nilanga Dela has confirmed.

The annual Kandy Perahera will commence with the ‘Kap planting’ ritual on July 25 at the four main devalayas which will be followed by the five-day process of Ethul Perahera.

Afterwards, this year’s first Kumbal Perahera will take to the streets on July 30.

Diyawadana Nilame Pradeep Nilanga Dela said the Kumbal Perahera will take place until August 03 followed by the first Randoli Perahera on August 04.

The final Randoli Perahera is scheduled to parade the night streets on the Nikini Full Moon Poya Day (August 08).

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Toxic water sold as medicine In SL

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It was revealed in court that a batch of Human Immunoglobulin, a therapeutic antibody drug, allegedly imported under the supervision of former Health Minister Keheliya Rambukwella and 12 other accused individuals, contained bacterial-contaminated water harmful to the human body.

This revelation was made by Deputy Solicitor General Lakmini Girihagama, who presented the findings of an international laboratory investigation into the drug’s composition during the court proceedings.

A WHO-accredited German laboratory has confirmed that two controversial drugs—Human Immunoglobulin and Rituximab—previously distributed in Sri Lanka’s public health system, were substandard and dangerous, containing no medicinal properties.

According to Deputy Solicitor General Lakmini Girihagama, who presented the findings to the Maligakanda Magistrate’s Court, the Human Immunoglobulin vials contained bacterial-contaminated water harmful to human health, while the cancer drug Rituximab was found to contain only saline solution, with no active components capable of treating cancer.

“The first suspect, Sudath Janaka Fernando, owner of the pharmaceutical supply company, distributed drugs to Sri Lanka’s hospital system that, according to laboratory analysis, had no medicinal value whatsoever.”

“Specifically, the Human Immunoglobulin drug was found to contain bacterial-contaminated water. Meanwhile, the cancer drug Rituximab lacked the essential protein components required to treat cancer and consisted only of sodium chloride—plain saline solution.”

“Based on a Cabinet paper submitted by the eighth suspect, former Health Minister Keheliya Rambukwella, the Government of Sri Lanka spent Rs. 144.74 million to procure what amounted to toxic bacterial water and ordinary saline, under the guise of medication.”

Magistrate Lochana Abeywickrama questioned whether the raw materials used in manufacturing were imported from India.

Deputy Solicitor General Girihagama confirmed that customs records showed the materials were imported under a classification code typically used for chemical birth control agents, not therapeutic drugs.

“Your Honor, I am about to reveal something that could deeply disturb the conscience of the court. The raw materials imported by the first suspect for pharmaceutical production were classified under customs code 3006.60.00. Investigating officers examined what types of drugs are typically imported under this classification. According to officials from the Department of Customs, this code is designated for chemical birth control substances. Your Honor, it is evident that these suspects have deliberately contributed to a grave and unlawful act.”

Meanwhile, this batch of pharmaceuticals was procured as an emergency purchase, based on Cabinet approval granted through a Cabinet memorandum.

In connection with this, the Criminal Investigation Department recently recorded a statement from former President Ranil Wickremesinghe.

Deputy Solicitor General Lakmini Girihagama informed the court that, according to the former President’s statement, full responsibility for the memorandum lies with the subject Minister.

Additionally, investigators have compiled a report on phone conversations between the first suspect and other individuals involved. This report reveals the nature of their relationship and further clarifies their connection, as presented to the court.

Regarding the transaction involving substandard pharmaceuticals, steps have already been taken to file indictments before the Permanent High Court Trial-at-Bar, the Deputy Solicitor General informed the Magistrate’s Court.

The case is scheduled to be recalled before the Magistrate’s Court on June 16.

(News1st)

(This story, originally published by News1st has not been edited by SLM staff)

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