By: Staff Writer

Colombo (LNW): In the backdrop of Sri Lanka Central Bank’s delay in implementing the domestic debt restructuring process, the United States government has asked a federal court in New York to delay judgment as it may intervene in the case between the Government of Sri Lanka and Hamilton Reserve Bank.

Hamilton Reserve Bank has sued the SL government for the recovery of US$250 million in bonds that it has defaulted last year, the global economic media giant Financial Times has reported from New York.

Governor of the Central Bank of Sri Lanka (CBSL), Nandalal Weerasinghe who was named amongst the 21 Bank Governors listed in the Global Finance has accepted the fact that they have not been able to complete commitments under the US$3 billion IMF extended fund facility programme.

The reason for the delay in the fulfilment of IMF EFF commitments was the ongoing court cases against debt optimization programmes, Weerasinghe who was amongst the 10 governors who earned an ‘A-’ grade claimed.

Sri Lanka has filed a motion to stay the judgment of U.S. District Court for a period of six months until it carries out negotiations on sovereign debt restructuring with sovereign and commercial creditors (foreign governments and foreign funds including banks).

The United States Attorney for the Southern District of New York, Damian Williams, has sent a letter dated August 30 2023 to U.S. District Judge Denise Cote, the judge hearing the case, to inform the court of the “potential participation of the United States Government” in the case.

“The United States is actively considering whether to file a Statement of Interest with respect to the pending motion to stay”.

“The United States expects that it will be in a position to inform the Court of its potential participation in this matter, and to file its Statement of Interest should it be authorized to do so (by the Department of Justice), no later than October 2, 2023,” the letter states.

“The Government respectfully requests that the Court reserve decision on the pending motion to stay until the United States has had an opportunity to submit any such statement of interest,” the letter adds.

The case was filed in June 2022 after Sri Lanka declared bankruptcy and defaulted on $1 billion of this particular bond issue, of which Hamilton Reserve Bank holds $ 250 million.

A judgment in favor of Hamilton Bank would potentially prevent the GOSL from including the bonds held by Hamilton Bank in any debt restructuring process.

Sri Lanka’s Finance Ministry has not yet issued a statement on the latest developments in the case. Sri Lanka Central Bank Governor expressed confidence in fulfilling the commitments and implementing all reform targets before the next Executive Board Meeting of the International Monetary Fund (IMF) in November 2023.

By: Staff Writer

Colombo (LNW): Newly appointed United Nations Resident Representative Marc-Andre’ Franche expressed appreciation over Sri Lanka’s economic recovery from an unprecedented crisis last two years and assured continuous support for the development process, Prime Minister’s Media Division divulged.

He said this when he called on Prime Minister Dinesh Gunawardena at the Temple Trees yesterday.

He noted that Sri Lanka is heading back in the right direction, but cautioned that the next couple of years will be very difficult for not only Sri Lanka but most of the countries due to the global economic downturn.

The Prime Minister said several steps have been taken to increase food production and ensure food security. “We also plan to diversify exports as in the long run we have to, not only be self-sufficient in food, but also increase foreign exchange earnings through exports,” he said.

The Prime Minister also briefed the UN representative about the steps taken for solving the grievances of the people who suffered due to 3 decades of conflict.

He pointed out that over 95% of the lands in North and East taken over during the conflict has been returned to the owners, land mines were removed so that the farmers could cultivate their lands, LTTE detainees have been released and fisheries livelihoods have returned to normalcy.

UN Representative Franche thanked Sri Lanka for the valuable services rendered by Sri Lankans who served in the UN system over the decades.

 He acknowledged that the Office of Missing Persons and other institutions have made remarkable progress in their work and requested steps to speed up the remaining work.

Prime Minister Gunawardena thanked the United Nations for the support given to Sri Lanka and expressed confidence that the Resident Representative would take it to a higher level.

UN Representative commended the progress made by Sri Lanka in achieving the country’s Sustainable Development Goals (SDGs), recognising the efforts undertaken to address pressing social and environmental challenges, the PMD statement said.

Sri Lanka PM had updated the UN chief on the progress made in Sri Lanka’s economic recovery and debt restructuring efforts. He had also presented the Sri Lankan government’s “ambitious climate prosperity plan”.

He outlined significant strides achieved in the process of economic recovery and the ongoing initiatives to restructure the country’s debt”, the PM’s MD statement said.

It added that the Premier had also highlighted Sri Lanka’s commitment to implementing sustainable economic policies and fostering a resilient financial framework to ensure long-term stability.

In terms of climate prosperity, the government has implemented comprehensive strategies aimed at mitigating the adverse impacts of climate change while promoting sustainable development.

The plan emphasises the importance of renewable energy, conservation efforts, and climate-resilient infrastructure, it said.

Colombo (LNW): The new bus fares revised in accordance with the recently revised fuel prices in Sri Lanka will come into effect from today (03).

Accordingly, the bus fares will increase by 4.01 per cent.

The minimum fare, however, will remain unchanged.

1. Minister of Energy Kanchana Wijesekara says the QR Code based fuel rationing system has been suspended: fuel shed owners say this rationing system was only of academic interest after the fuel pump prices were more that doubled, as most customers purchased much lower quantities of fuel as against the quota.
   
2. Analysts express shock upon learning from Dr Wasantha Bandara of the National Patriotic Collective that China’s plan to rescue SL from economic crisis in 2022 had been shattered following the unilateral declaration of bankruptcy by CB Governor Nandalal Weerasinghe: also refer to the previous CB Governor Ajith Nivard Cabraal’s affidavit to the Supreme Court wherein he has asserted that a USD 10.7 bn “pipe-line of inflows” was in place when the hasty debt default announcement was made on 12April’22.
   
3. Representatives of the Transport sector propose to the National Transport Commission to increase bus fares by 4% and to keep the minimum bus fare unchanged: Assn of Container Transporters say Container haulage charges will be increased by 5%.
   
4. Central Bank tweets that its Governor Dr Nandalal Weerasinghe has been rated “A-” by the “Global Finance Magazine” based “on inflation control, economic growth goals, currency stability, & interest rate management”: analysts question the credibility of this claim since Sri Lanka announced bankruptcy, experienced its highest inflation & interest rates, suffered quarterly economic contractions of over 10% per quarter, and the LKR displayed wide fluctuations, during Weerasinghe’s tenure: analysts also express amusement that the CB has tweeted this news as this “Global Finance Magazine” has only 9,693 followers on Twitter, 8,300 followers on Facebook & a worldwide “circulation” of just 50,000.
   
5. Disaster Management Center says 20 districts affected by the dry spell: Agriculture and Agrarian Insurance Board says more than 60,000 acres of paddy fields destroyed by the dry weather: overall, 279,892 people affected.
   
6. The US Govt asks a US Federal Court in New York to delay judgment in the case between the SL Govt and Hamilton Reserve Bank (which has sued for the recovery of USD 250mn in bonds that the SL Govt defaulted last year), as it may intervene in the case: previously, the SL Govt had filed a motion to stay the judgment for a period of 6 months until it carries out negotiations on debt restructuring with sovereign & commercial creditors.
   
7. Monetary Board cancels the Finance Business Licence of Bimputh Finance PLC with effect from 1September’23: says the financial condition of BFP has deteriorated due to deficient capital level, poor asset quality & continuous losses and no satisfactory progress has been made to revive the critical condition.
   
8. Diplomatic sources say Japanese PM Fumio Kishida is scheduled to visit SL next week, on his way to the G-20 Summit in New Delhi: PM Kishida is likely to meet President Ranil Wickremasinghe to discuss the SL’s debt restructuring and future investment opportunities.
   
9. UNDP Report reveals that “a lack of education, and the ability to adapt to disasters are factors that make most people feel vulnerable” in SL: also says several districts, including Puttalam, Batticaloa, Mullaitivu, Kilinochchi, Ampara, Vavuniya, & Nuwara Eliya, exhibit multi-dimensional vulnerability, “highlighting the need for focused interventions to address factors like disaster preparedness, debt relief, water source accessibility, & female education”.
   
10. England Womens Cricket team slumps to its 1st defeat by SL in T20 internationals: SL levels series with this historic win at Chelmsford: ENG-W 104 (18): SL-W 110/2 (13.2): Chamari Athapaththu 55 in 31 balls.

Colombo (LNW): Marc-Andre Franche the newly appointed United Nations Resident Envoy during a meeting with Prime Minister Dinesh Gunawardena at Temple Trees yesterday (01) commended Sri Lanka’s economic recovery from an unprecedented crisis and assured continuous support for the development process.

Franche pointed out that Sri Lanka is heading back in the right direction, but the next couple of years may be very difficult for not only the island nation, but also most of the countries due to the global economic downturn.

Prime Minister Dinesh Gunawardena in response noted that the government of Sri Lanka has taken a number of initiatives to boost food production in the island nation and guarantee food security. Along the way, Sri Lanka expects not only being self sufficient in food, but also growth in foreign exchange through exports, he emphasised.

He added that measures undertaken to address the issues of individuals affected by thirty years of war are already in motion, adding that there is a significant progress, such as the return of over 95 per cent of land in the North and East parts of the country that was confiscated during the conflict.

Further, land mines have been removed from the so that farming will no longer become a problem, and LTTE detainees have been released, whilst the fisheries sector has regained normalcy, Gunawardena told Franche.

Meanwhile, the two parties also discussed Sri Lanka’s development initiatives related to Sustainable Development Goals (SDGs), green economy, social cohesion and social protection.