Minister of Foreign Affairs Ali Sabry convened a briefing on current developments in Sri Lanka for the Colombo-based diplomatic corps on Monday, 10 April 2023. Minister of State of Foreign Affairs Tharaka Balasuriya, Chief of Staff to the President Sagala Ratnayaka and Foreign Secretary Aruni Wijewardane were associated with the briefing.

Opening the meeting, the Minister thanked the international community for the support extended to Sri Lanka towards economic recovery and briefed on progress made in this regard. He also requested countries to review their travel advisories to reflect the stability in the country which would further encourage tourist influx.

The Minister also highlighted initiatives taken by the government for reconciliation including the convening of the All-Party Conference by the President in December 2022 and January 2023 and the appointment of the Cabinet Sub-Committee on Reconciliation chaired by the President. He also briefed on the government’s position on the 13^th Amendment and the proposed counter-terrorism legislation. He provided an update on ongoing efforts to set up a Truth and Reconciliation mechanism, and thanked the Government of South Africa for facilitating a working visit in March to study the country’s Truth and Reconciliation Commission (TRC).

President’s Chief of Staff Sagala Ratnayaka briefed on developments related to the government’s structural reform process in the context of IMF, World Bank and ADB programmes, and highlighted the measures taken, inter alia, towards debt sustainability, fiscal oversight, social protection for the vulnerable segments, good governance and addressing corruption.

Foreign Secretary Wijewardane outlined Sri Lanka’s continued engagement with the UN mechanisms including Sri Lanka’s recent participation in the 4th Cycle of the Universal Periodic Review (UPR), the 6th Periodic Review under the International Covenant on Civil and Political Rights (ICCPR) and the 52nd Session of the Human Rights Council (HRC). She added that Sri Lanka also submitted its 9th Periodic Report to the Committee on the Elimination of all forms of Discrimination Against Women (CEDAW) in April 2022 and has started the consultation process among relevant stakeholders.

The Foreign Secretary also highlighted the government’s initiatives to proactively engage with Sri Lankans overseas including through the recently established Office for Overseas Sri Lankans Affairs.

Following the briefing members of the diplomatic corps engaged in a discussion on several pertinent issues, including investment promotion, reconciliation, good governance, and anti-corruption. They also thanked Minister Sabry for providing regular briefings to the diplomatic corps on relevant developments in Sri Lanka.

Ministry of Foreign Affairs                                 

Colombo

10 April 2023

By: Isuru Parakrama

Colombo (LNW): The Consumer Affairs Authority (CAA) announced that special teams have been deployed to conduct raids during the upcoming festive season, in a move to institute legal action against offenses such as the sale of food items for exorbitant prices, the sale of items that are not suitable for consumption and the concealing of stocks.

In a statement, the CAA revealed that over 1,500 trades have been raided for multiple offenses including the above, adding that these special operations will be increased during the Sinhala and Tamil New Year festive season.

The CAA will also be moving its radar towards the selling of eggs, and poultry farmers as well.

These operations may be carried out in both day and night, CAA added.

By: Isuru Parakrama

Colombo (LNW): The 2022 G.C.E. Ordinary Levels Examination will be held from May 29 to June 08, 2023, announced the Department of Education in a statement today (10).

The announcement comes in after confirming that the holding of the examination as previously planned on May 10 will be dragged in due to paper marking teachers’ involvement in a strike action over the government’s new tax policy.

The Dept has also issued several telephone numbers and an email for any inquiries regarding the examination.

Tel: 011 2 785 922 / 011 2 784 208 / 011 2 784 537
Email: [email protected]

By: Staff Writer

Colombo (LNW):Sri Lanka for the first time under the dictates of Washington based International Monetary Fund (IMF) after the declaring of preemptive debt default for the first time is participating the 2023 Annual and Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group from 10-16.

These meetings each year bring together central bankers, ministers of finance and development, private sector executives, civil society representatives, and academics to discuss the state of the global economy and issues of international concern, such as the growth outlook, financial stability, and poverty reduction.

The Meetings are the only gathering of its kind in the world and a unique forum for discussion on economic policymaking.

During Annual and Spring Meetings, Governors and country officials hold bilateral meetings with the staff and management of the IMF and World Bank.

Sri Lanka will be represented by State Minister of Finance Shehan Semasinghe, CB Governor Nandalal Weerasinghe and Finance Ministry Secretary Mahinda Siriwardena.

This year’s Spring Meetings come as political pressure ramps up for the global financial system to evolve to tackle the development and climate crisis at hand.

On the eve of IMF Spring Meetings and the country’s ongoing grapple to restructure massive external and internal debt with the first tranche of the international lender’s US$ 3 billion in hand, one of the first comments on the whole affair was made by Former Central Bank Governor Ajith Nivard Cabraal.

Sri Lanka’s economy is being controlled from Washington, Sri Lanka’s Former Central Bank Governor said recently.

Noting that he read 151 pages of the IMF report on Sri Lanka’s Extended Fund Facility, Cabraal claimed that it would not be easy for Sri Lanka to meet the conditions imposed by the global lender.

The Central Bank Governor and the leaders of the country must be mindful to work and not complain, former Central Bank Governor Ajith Nivard Cabraal said, adding that he has handled this job for the last nine years working for the country without making grumbles.

During his tenure Sri Lanka was servicing debt without any default even during the period of war and the economic crisis from 15 September 2021 till March 2022. The crisis started in 2019 during the tenure of W.D. Lakshman.

Cabraal’s comments carries validity as the country is attending spring meetings without any bargaining power as the country’s image has fallen to the low level of debt defaulter and it is compelled to oblige the Global lenders 48 bench marks and 9 prior actions.

On top of it, Sri Lanka has to face the pressure of its foreign and domestic creditors and that is why it is incomprehensible for taking a hasty decision to announce the sudden “debt default” and non- payment of all forex debt and interest (including the July 2022 USD 1,000 mn International Sovereign Bonds ISB) from 12th April 2022 onwards, and thereby risk major adverse consequences, together with a massive “cross-default” as well.

The IMF can play a vital role in supporting fragile economies that are increasingly at risk from climate change, and provided hope for many during the Covid crisis, injecting liquidity into the global system, and setting up the Resilience and Sustainability Trust.

But the medicine prescribed for the country’s ailing economy is very difficult to swallow. The Spring Meetings are a chance to drive some urgent changes in how the World Bank and IMF evolve, shaping the global consensus for reform to accelerate this evolution. 

In fact, Sri Lanka has been on IMF intensive care almost continuously since 1965 but not a single previous IMF program has not been able to cure the country’s ailing economy fully .This is the 17th time under IMF life support, hope for the best.

By: Staff Writer

Colombo (LNW):New York Federal Court rules in favor of Hamilton Reserve Bank against Sri Lanka bond default dismissing Clifford Chance’s defense on behalf of the SL government.

The case will therefore proceed, to decide on whether the GOSL must immediately pay the

There was no official statement of the government on this international news agency report and this court order has not been reported in major international news agencies such as Reuters and AFP .

Denise Cote, Judge of the District Court of the Southern District of New York, on March 24 dismissed the motion filed by the law firm representing the GOSL, Clifford Chance US LLP

US$280 million New York Court Judgment if Bond is not repaid.Sri Lanka was supposed to pay 5.875% interest on its international sovereign bond on July 25, 2022, but it was unable to do so due to the country’s ongoing financial crisis.

The Hamilton Reserve Bank has demanded full payment of the $250 million owed, citing interest of more than $7 million.

The bondholder has retaliated against the Sri Lankan government, claiming that the country’s default was orchestrated by people at the highest levels of government and that the Rajapaksa family was to blame.

The Sri Lankan government has asked a US judge to dismiss the case filed by Hamilton Reserve Bank for defaulting on bonds, the financial news agency Bloomberg reported.

The government had requested that the case in New York be dismissed over the country reaching debt default, stating that the case brought by one bank is an “apparent attempt to gain leverage over a nation in crisis and jump ahead of other foreign creditors.”

Hamilton Reserve Bank, based in the Caribbean islands of St. Kitts & Nevis, filed legal action citing the country’s default on a $1 billion sovereign bond.

The case will therefore proceed, to decide on whether the GOSL must immediately pay the outstanding amount.

Denise Cote, Judge of the District Court of the Southern District of New York, on March 24 dismissed the motion filed by the law firm representing the GOSL, Clifford Chance US LLP.

Based in the Caribbean nation of St. Kitts-Nevis, Hamilton Reserve Bank, which is being represented by the law firms of Bleichmar, Fonti & Auld LLP; and Jenner & Block LLP, brought the action for breach of contract, to recover the principal sum of $250,190,000 plus interest of 7,349,331.25 of the bonds.

The 10-year bonds matured on July 25, 2022. The registered holder of the bonds are New York-based Cede & Co., while Hamilton Reserve Bank is the beneficial holder.

Cede & Co. Has authorized Hamilton Reserve Bank to take action on behalf of Cede & Co. To recover the amounts. The GOSL’s argument was that Hamilton Reserve Bank had no authority as the registered holder of the bonds is Cede & Co.

In dismissing the motion, the court recognized the validity of Cede & Co’s authorization to Hamilton Reserve Bank.

By: Isuru Parakrama

Colombo (LNW): The Professionals Trade Union Collective is set to meet this (10) evening to decide their future actions regarding the government’s new tax scheme and the controversial “Anti-Terrorism Bill,” among other things.

The trade union actions are ever growing in the midst of government’s strict measure to impose tax on public servants and the formulation of the ATA, which, according to many critics, vests in a brute force over anti-government ideologies and is a direct blow in the head against democracy.

By: Isuru Parakrama

Colombo (LNW): The Election Commission is set to meet Prime Minister Dinesh Gunawardena this (10) morning, following the ongoing dilemma on the holding of the Local Government Election.

The Election Commission had requested a meeting with the Prime Minister on the matter, and Gunawardena, in response, had confirmed that the holding of a meeting would be possible on Monday (10) at 11.30 am.

The Commission thereafter is expected to meet tomorrow (11) to make a final decision on the holding of the LG Polls, whilst dodging many queries by the public on the ongoing delay.

The EC on a previous occasion had commented that the holding of the Polls may not be possible without receiving the necessary funds, adding that a letter submitted to the President, who also serves as the Minister of Finance, in this regard received no response.

WASHINGTON, AFP: The World Bank’s ongoing reform could result in a $ 50 billion lending boost over the next decade, US Treasury Secretary Janet Yellen told AFP ahead of stakeholders’ meetings this week where key changes are expected to be announced.

Central bankers, finance ministers and participants from more than 180 member countries are expected to gather in the US capital for the International Monetary Fund and World Bank’s spring meetings.

A key topic of discussion will be the World Bank’s evolution, amid a push for lenders to revamp and meet global challenges like climate change. The United States is the largest shareholder of the World Bank Group.

“I expect there to be an update of the bank’s mission to add building resilience against climate change, pandemics, and conflict and fragility to the core goals,” Yellen said in the interview with AFP. She added that there needs to be a recognition that these challenges aren’t separate or conflicting but rather, inextricably linked.

“Second, there will be an announcement that the bank is stretching its financial capacity to meet these objectives, and adopting changes or endorsing changes that could result in an additional $50 billion in extra lending capacity over the next decade,” Yellen said.

The move would be a significant resource boost marking a 20% rise in the International Bank for Reconstruction and Development’s (IBRD) sustainable lending level. The IBRD is the World Bank’s middle-income lending arm.

Yellen also said there would be an announcement on updating the bank’s operational model to “orient it towards the goals that we’re setting.” Among other things, this includes creating more incentives for the mobilisation of both domestic and private capital.

“We seek additional reforms during the rest of this year,” Yellen said.

In March, the World Bank submitted an evolution plan to be discussed with its development committee on 12 April, during the spring meetings.

Noting that World Bank President David Malpass has laid a “solid foundation” for the ongoing work, Yellen added that she expects US candidate Ajay Banga to be elected to the helm of the organisation and continue the revamp.

Banga was the sole nominee for the position after Malpass announced this year that he would step down early.

Also on policymakers’ agendas next week are support for war-torn Ukraine and debt restructuring.

“We have seen some movement by China on participating in debt restructuring for Sri Lanka, which is a hopeful sign,” Yellen said.

As global growth slows, the World Bank previously warned that the outlook is especially tough for the poorest economies – which face sluggish growth driven by heavy debt burdens and weak investment.

Yellen had earlier said that China should move more quickly on some debt restructurings.

Discussions on this front will continue as a newly formed global sovereign debt roundtable gathers, she told AFP.

“We’re having useful technical discussions on important elements of debt restructuring. China has been participating, and we all continue to press China for improvements,” she said.

Washington will continue pushing for a speedier and more predictable operation of the G20 “common framework” for debt restructuring as well.

On Ukraine, Yellen said: “Once again, we will work with all of our allies to insist that Russia cease its brutality in Ukraine.” She added that the United States would press for economic support alongside its partners on this front.