Shehan Semasinghe

Wishing you, former President, the very best on your birthday !

I welcome the comments by IMF Managing Director Kristalina Georgieva acknowledging the remarkable progress Sri Lanka made in stabilizing its economy under our government, achieving this within just two years following a historic crisis. After the economic collapse of 2022, our country faced severe shortages, long queues, soaring inflation, and a loss of public confidence. During this challenging period, our government took difficult but necessary decisions, implementing fiscal discipline, structural and governance reforms, revenue measures, and completing debt restructuring under the IMF programme. These decisive actions laid the foundation for our economic recovery. Despite the harsh criticism from those who were then in opposition and are now in government, the effectiveness of our policies has clearly been proven. The IMF’s recognition confirms our country remains firmly on the path to sustainable economic stability, achieved through close collaboration with the IMF and the tireless efforts of our government.

What is the current progress of the recommendations from the IMF Governance Diagnostic Assessment ? ————————————————— During our government, Sri Lanka became the first country in Asia to request a Governance Diagnostic Assessment from the International Monetary Fund to strengthen transparency and accountability. After the 2022 economic crisis, we sought this assessment as part of our reform programme to identify and fix governance weaknesses affecting economic stability and growth. One of our main goals was to reduce corruption vulnerabilities and strengthen institutions. The IMF completed the review with 16 key recommendations, published in October 2023, and we designed our reform roadmap to fully implement them and protect the country’s economic future.

As the former State Minister of Finance, I am concerned by the emerging rumors regarding a possible shortage of LP gas in the market. The Government must address this matter with utmost prudence and urgency. Even speculation about shortages can create unnecessary panic, leading to avoidable disruption to daily life. We all recall the difficult period in 2022, when shortages of essential commodities resulted in long queues across the country. At that time, Sri Lanka was facing an unprecedented economic crisis, with severe foreign exchange constraints and the inability to finance adequate imports. Restoring stability required extraordinary effort, discipline, and coordination. Despite repeated interruptions and the absence of meaningful support from the Opposition at the height of the crisis, we managed that extremely difficult period and set an example to the rest of the world in stabilizing an economy under severe distress. The reform program, fiscal consolidation, and restoration of external confidence were achieved through determination and responsible leadership. Today, the situation is fundamentally different. There is no foreign exchange crisis, nor is there a macroeconomic breakdown. Therefore, any possible disruption in gas supply would be a matter of management, coordination, and timely intervention and it must be addressed before it escalates into a broader public concern. It is also encouraging to note that the opposition at present does not appear to be obstructing efforts. At moments like this, national interest must prevail over political differences. The Government should immediately, Clarify the actual stock position and shipment schedules. Ensure smooth distribution and prevent artificial shortages. Communicate transparently with the public to prevent panic buying. Timely intervention is critical. If managed properly at this stage, this issue can be resolved . However, delay could unnecessarily create instability. The priority of the government must be to act now decisively and responsibly to ensure uninterrupted supply and maintain public confidence.

It is much appreciated, and I am thankful to IMF Managing Director Kristalina Georgieva for visiting Sri Lanka despite your busy schedule. As a citizen of Sri Lanka, I sincerely appreciate the commitment and determination you demonstrated in supporting the country at the height of its severe economic crisis. Your leadership in shaping the reform agenda, including macroeconomic stabilization and governance reforms has been instrumental in achieving the relative stability we see today. During our tenure, we undertook difficult but necessary measures to restore macroeconomic stability and lay a solid foundation for sustainable growth. These efforts were guided by the national interest and the welfare of our people. Debt restructuring was a key element of this process, and I deeply appreciate your role in helping conclude it in less than two years setting an example for the rest of the world. I wish you all the very best in your continued leadership and service.

I am deeply saddened by the passing of Professor Tissa Vitarana, veteran politician, former Minister, and leader of the Lanka Sama Samaja Party. May he attain Nibbana !

The decision to cancel pension entitlements of former Members of Parliament serves no real economic purpose. It is a symbolic act designed to satisfy short-term political optics and play to public anger. The amounts involved are negligible. Saving this money will not fix the economy, reduce the deficit, or improve public services. Not even marginally. But the damage this decision causes is real. I personally know former MPs who relied on this modest pension as the only means of securing a dignified retirement after years of public service. Removing it does not punish corruption, it punishes those who did not enrich themselves in office. This sends a dangerous message about who politics is for in Sri Lanka. Politics is now effectively reserved for: • the ultra-rich, • those with inherited wealth, or • those permanently maintained by party machinery. Talented, capable, independent citizens who are not financially privileged will simply walk away from public life. That is not reform, that is exclusion. Those who abused power don’t need a pension. Those who are gainfully employed don’t need it. Those protected by party structures don’t need it. But those who served honestly, and left office with little do. The message is unmistakable: Politics in Sri Lanka is only for a select few. Everyone else need not apply. If reform was the true objective, the solution was obvious: make it optional, subject to application and scrutiny, not a blanket abolition driven by populism. When viewed alongside other developments, it becomes hard to ignore a broader pattern: the steady narrowing of political space and the quiet encouragement of a one-party-dominant culture. That will not be easy in Sri Lanka, nor should it be. Multi-party democracy is in our genes. We are one of the oldest democracies in Asia. Reform should strengthen democracy, not quietly hollow it out. Justice should be targeted, not theatrical. And governance should be guided by reason, not applause. This decision deserves serious public debate not blind celebration. P.S. I have never applied or intended to apply for pension and and in any event since my parliamentary term was less than 5 years I am in any event not entitled to apply.

Sri Lanka’s Remarkable Economic Recovery: From Crisis in 2022 to Growth in 2024 Despite frequent and never-ending attempts by several legislators in the current government to downplay or misrepresent Sri Lanka’s economic recovery, the facts speak for themselves. The country’s economic turnaround was proven, and recognized by the international community. Under the leadership of President Ranil Wickramasinghe, Sri Lanka has achieved a remarkable recovery from one of the most severe economic crises in its post-independence history. Through strong leadership, disciplined economic management, and comprehensive structural reforms, economic stability was restored and the country was placed firmly on a sustainable path toward growth, long-term resilience, and the ability to withstand future shocks and challenges. Given below are a few key statistics that clearly demonstrate this key achievements: 1. Economic Growth Returned •After an 8% contraction during the crisis, Sri Lanka’s economy grew by 5% in 2024, signaling a full recovery. 2. Fiscal Stability Restored •The budget deficit, which had reached –5.7% of GDP at the height of the crisis, was stabilized by 2024. •Treasury cash balances improved from a Rs. 832 billion overdraft in 2021 to a Rs. 805 billion surplus by end-2024. 3. Government Revenue Recovered •Government revenue rose from 8.3% of GDP in 2022 to 13.6% in 2024, thanks to better tax policies, efficient administration, and renewed economic activity. 4. State-Owned Enterprises Turn Profitable of strategically important 52 SOE’s •SOEs reversed losses of Rs. 775 billion in 2022 to report a profit of Rs. 534 billion in 2024, through reforms and improved management. 5. Prices and Inflation Stabilized •Inflation, which peaked at 70% in September 2022, fell to –1.7% by December 2024. •Usable foreign reserves increased from less than USD 500 million to USD 6.5 billion by September 2024 6. Financial Markets Strengthened •The Sri Lankan rupee strengthened from LKR 363/USD (end 2022) to LKR 295/USD. •Interest rates on 1-year Treasury Bills dropped from 29.3% to 8.9%, supporting loans and business growth.

සුභ නත්තලක් ! Merry Christmas! 🎄

It is a positive and timely move by the IMF to consider extending emergency assistance to Sri Lanka under the Rapid Financing Instrument (RFI) following the recent devastation. The Fund’s constructive response, expressing a strong willingness to support Sri Lanka, will play a crucial role in meeting the country’s urgent recovery and stabilization needs during this challenging period @IMFNews imf.org/en/news/articl…

Wishing former President Mahinda Rajapaksa a very happy birthday. I extend my best wishes for good health, strength, and long life @PresRajapaksa ගරු මහින්ද රාජපක්ෂ මැතිතුමණි , ඹබතුමන්ට සුබ උපන්දිනයක් වේවා !

It was a pleasure engaging in a fruitful discussion with Mr. Lin Tao, Deputy Director-General of the Bureau for South and Southeast Asian Affairs at the International Department of the Communist Party of China (IDCPC), during my visit to Beijing, China.

It was an honor to participate in the 2025 Forum on the Development of Xizang, China. The discussions offered valuable insights into sustainable development, regional cooperation, and the progress achieved in Xizang

Former President Ranil Wickremesinghe was granted bail by the Colombo Fort Magistrate’s Court. Instead of focusing on the pressing concerns of the people and the challenges confronting the country, particularly the need for sustained economic growth, the government continues to prioritize political revenge. At this critical moment, the judiciary remains the only reliable source of ensuring justice and protecting democratic values.

It was under the leadership of former President Ranil Wickremesinghe and his government that Sri Lanka’s economy was successfully revived. Without his guidance & leadership, overcoming the economic crisis would not have been possible. More importantly, essential structural and economic reforms were implemented,and the most challenging debt restructuring was successfully completed, firmly placing the country on a path toward a stronger and more stable economy for the betterment of people of Sri Lanka

Deepest sympathies on the passing of former State Minister Lohan Ratwatte. May he attain Nibbana !

As U.S. President Donald Trump’s new tariffs take effect from August 1, the tariff on Sri Lankan exports has been adjusted to 20%. However, significant efforts must be made to enhance export performance, which remains pivotal to Sri Lanka’s economic recovery. It’s not Sri Lanka alone, many competitive countries have also faced similar adjustments, underscoring the need for us to stay ahead of the curve. Recent tax adjustments are a positive step toward economic strengthening, but we must be careful not to slip into a comfort zone. Staying on course with sustained focus and reforms is essential for long-term stability and growth.

I wish you every success in your future endeavors @GitaGopinath I would also like to sincerely thank you for your unwavering support, guidance and cooperation and for the courage you demonstrated in helping navigate Sri Lanka through the worst economic crisis in our history within a remarkably short span of just two years.