Colombo, Dec 16: United National Party (UNP) Deputy General Secretary Harin Fernando on Monday warned that Sri Lanka could slide into a fresh economic and foreign exchange crisis by the Sinhala and Tamil New Year in April 2026, if the fallout from Cyclone Ditwah is not managed with a clear recovery strategy.
Addressing a media briefing, Fernando said the country was already showing signs of renewed pressure on the US dollar, driven by losses to agriculture and the food supply chain caused by the cyclone. He accused the government of failing to present a credible damage assessment or economic projection, warning that the absence of a structured plan could trigger serious instability.
“Sri Lanka is moving towards a forex crisis,” Fernando said, urging authorities to take early corrective measures. He cautioned that demand for dollars would rise sharply in the coming months, potentially leading to currency volatility and economic contraction.
The UNP leader said his warning aligned with earlier assessments made by former President Ranil Wickremesinghe, who had flagged the long-term economic risks posed by climate-related disasters. Fernando called on the government to draw on expertise beyond its ranks, including experienced former leaders, to navigate the post-cyclone recovery.
“If there is no proper plan, programme or projection, the country will move towards a massive economic collapse by the New Year,” he said, stressing that timely intervention could still avert the worst outcomes.
Fernando urged authorities to accurately calculate cyclone-related losses and present a transparent recovery roadmap, warning that failure to do so would leave the economy vulnerable in early 2026.
