Against the backdrop of increased liabilities of the government, a delegation of the International Monetary Fund (IMF) is due here by mid this month to carry out a forensic audit on the arrears and other liabilities of the government, it is learnt. According to a Cabinet paper submitted by Prime Minister Ranil Wickremesinghe at the special meeting yesterday, the IMF has agreed to a request by the government to identify ways and means to manage the expenditure arrears. The paper says the outstanding government debt remained at Rs. 8,475 billion by the end of last year.

It accounts for 74.9 percent of the GDP. Asserting that the State Owned Enterprises suffered horrendous losses during the previous regime, a significant amount of liabilities emerged after the preparation of the 2016 budget. The Prime Minister says in his paper that the dire situation has forced the government to take strong policy measures to revive the loss making state enterprises. Highlighting that the government could have coped up with the situation if not for the present crisis in the global economy, he says the government has to weather the situation. "While our debt servicing payment have increased due to the contingent liabilities, the opportunity of servicing or refinancing the debt has become difficult due to the downturn of global economy," he says.

He says the global situation will remain for one year due to the Presidential Election in the US and the referendum in the European Union. The government observes in the paper that the drop in global fuel prices will result in the revenue drop of oil producing countries. Then, these countries lower their spending, possibly leading to reduce the demand for Sri Lankan workers. The slowdown in Chinese economy will result in the reduction of tourist arrivals here from that country. It is observed that if the US Federal Reserve increases rates, it will result in the rise of interest payments on foreign loans obtained by Sri Lanka. Besides, the ISIS domination on the countries purchasing tea from Sri Lanka will have an impact on the local economy.

The government will conduct fresh probes into the scams involved in the import of a stock of biofertilizer from China and in the introduction of organic farming during the time of former President Gotabaya Rajapaksa, a minister said yesterday.

Cabinet spokesman Minister Nalinda Jayatissa said today that the people will know whether the Janatha Vimukthi Peramuna (JVP) MPs had sought assistance from the President’s Fund as claimed by SJB MP Dayasiri Jayasekara when the rest of the list is released soon.

The circular issued by the Western Province Education Zonal Ministry prohibiting private tutoring classes for students by school teachers, along with the letter issued by the Education Ministry regarding modulators, has been withdrawn, Parliamentarian Mahinda Jayasinghe said.

Adding further controversy to the misuse of the President’s Fund, Samagi Jana Balawegaya (SJB) MP Dayasiri Jayasekera yesterday said some of JVP members also sought assistance from the President’s funds prior to 2010.

In response to queries about the potential introduction of new taxes on imported vehicles, Cabinet Spokesman Nalinda Jayathissa said today that the Finance Ministry will make an official announcement regarding taxes in the future.

In response to widespread concerns regarding the alleged presence of Israeli soldier Gal Ferenbook in Colombo, police said that they have not received any verified information on the matter.

The Sri Lanka Air Force (SLAF) is set to add one of its overhauled and upgraded Kfir multirole combat aircraft to its fleet within the first three months of next year, the Daily Mirror learns.

The tri-forces security provided to former Presidents will be removed from today as announced by Public Security Minister Ananda Wijepala. The Defence Ministry said instructions regarding the matter have been issued to the Commanders of the tri-forces. The Defence Ministry said only police security will be assigned for the security of former Presidents.

The Ministry of Education announced that the second stage of the third term for the 2024 academic year in all government and government-approved private schools will commence on January 2, 2025. The term is set to run for three weeks, concluding on January 24, 2025.

A female student and another woman were killed after being struck by an express train at the Anuradhapura New Town Railway Station. The victims were part of a group from Ratnapura attending a taekwondo tournament at the Anuradhapura Public Ground.