A Centre - Province dispute has arisen over the issue of land with Eastern Provincial Council canceling two projects proposed by the Central government, claiming that more than 35,000 acres in the Trincomalee district were to be allotted to two private companies without consultation with the Council.

Tough economic reforms like reducing debts of the petroleum, power agencies and other state enterprises, limiting foreign borrowings, cutting subsidies, curbing military spending and consulting the International Monetary Fund (IMF) in other policy issues are in store for Sri Lankans after the IMF approved its biggest-ever facility of $2.6 billion to the country.