Former MP Rajitha Senaratne has warned that Sri Lanka is heading towards a “severe and dangerous economic precipice” by the middle of this year. Speaking on the current trajectory of the economy, Senaratne cautioned that, despite traditional New Year celebrations, citizens are unlikely to experience any relief as the crisis he predicted for late 2025 begins to materialize.
Senaratne, who revealed he left the Samagi Jana Balawegaya (SJB) despite its electoral prospects to speak openly, argued that simply rotating politicians is not the solution. He stressed that the country requires a leader with the “intelligence” and a clear “work plan” to navigate the nation out of its current “mud hole.”
“By the middle and end of this year, people will feel this crisis hitting them directly,” he said, urging the public to understand that a change in leadership without a practical and well-structured plan will not address the underlying issues.
Highlighting the immediate burden on citizens, Senaratne pointed to recent increases in essential services. Gas prices have surged, and electricity bills are set to rise by a staggering 112.5%. While the government claims record tax revenues, he argued that this reflects over-taxation rather than economic progress. “When tax revenue increases, you must realize the amount being taxed from the people is also increasing,” he said, noting that such heavy taxation was not imposed even during the peak of the previous crisis.
He explained that although the country is currently “keeping its head above water” by deferring bilateral debt payments, this is only a temporary reprieve. To meet the 2028 obligations, he said, foreign reserves must reach $8 billion by the end of 2025, $12 billion by 2026, and $14 billion by 2027.
However, Senaratne expressed deep skepticism about achieving these targets, pointing out that reserves remain stagnant at $6.2 billion—the same level when the current administration took office. “If we cannot pay the debt in 2028, we will go bankrupt again,” he warned, adding that failure would result in a complete loss of foreign aid and investment, leaving the country unable to provide basic food or welfare for its citizens.
