Pakistan and Sri Lanka arrived at a consensus on ways and means of strategising a way forward to optimize bilateral trade and business activities within the context of the current economic scenario.

This was the outcome of the discussion between Ceylon Chamber of Commerce Sri Lanka-Pakistan Business Council President S. Deivanayagam and committee members and the High Commissioner of Pakistan in Sri Lanka Maj. Gen (retr.) Umar Farooq Burki HI.

The High Commissioner was briefed on various activities and initiatives being planned by the business council in order to promote trade and investment opportunities between Pakistan and Sri Lanka.

In this regard, a delegation visit is being planned in early March 2023 by the business council to explore business opportunities with counterparts in Pakistan.

A detailed discussion was held to strategize a way forward to optimize bilateral trade, within the context of the current economic scenario.

The Business Council appreciated the timely and expeditious actions taken by the Government of Pakistan to facilitate imports from Sri Lanka, despite current challenges.

The High Commissioner underscored that such challenges must be viewed as a catalyst for capitalizing on valuable opportunities and that Pakistan would continue to prioritize its relations with Sri Lanka in all facets of cooperation.

The High Commissioner further highlighted that Sri Lanka is considered as a very important regional partner with which Pakistan would like to further enhance its trade, business and economic relations.

To this end, he apprised that business visa applications from Sri Lanka are being processed on priority within 24-48 hours by the High Commission, subject to fullfilment of requirements.

Pakistan’s Trade and Investment Attaché Asmma Kamal briefed the participants regarding the various high potential sector-specific trade exhibitions being organised in Pakistan by the Ministry of Commerce, Government of Pakistan and Trade Development Authority of Pakistan.

She invited Sri Lankan importers, exporters, manufacturers, buying houses and businesses from various sectors to participate in the upcoming four mega trade exhibitions being organised in Pakistan.

These events are Engineering and Healthcare Show (23-25 February in Lahore), Tech Spring Pakistan for ICT Sector (16-18 March in Lahore), International Food and Agriculture Exhibition (4-6 May in Karachi) and the Fourth Edition of the International Textile Exhibition known as TeXpo (26-28 May in Karachi).

The High Commissioner reaffirmed his commitment to support the leadership and members of the Sri Lanka Pakistan Business Council in all possible manner and to continue working closely to promote bilateral trade, joint ventures and economic cooperation between Pakistan and Sri Lanka.

China’s Foreign Ministry Spokesperson Mao Ning says the Export-Import Bank of China will provide an extension on the debt service to Sri Lanka due in 2022 and 2023.

Sri Lanka will not have to repay the principal and interest due on the Bank’s loans during the above-mentioned period, so as to help relieve Sri Lanka’s short-term debt repayment pressure, she explained

Meanwhile, she said the Bank would like to have friendly consultations with Sri Lanka regarding medium- and long-term debt treatment in this window period and the Bank will make best efforts to contribute to the debt sustainability of Sri Lanka.

The Bank also noted that it will support Sri Lanka in its loan application to the IMF while continuously in touch with commercial creditors (including the International Sovereign Bondholders) to provide debt treatment in an equally comparable manner.

It will also encourage multilateral creditors to do their utmost to make corresponding contributions.

Addressing a regular Press conference she further noted that the financing support document is aimed at combining an “immediate contingency measure” and “medium- and long-term debt treatment” to rapidly, effectively and truly resolve Sri Lanka’s debt issue.

As far as I have learned, China is the first official bilateral creditor to have taken the initiative to announce debt extension to Sri Lanka. This speaks to China’s sincerity and action to support Sri Lanka’s effort to achieve debt sustainability,’ she said.

Ning further said that China calls on all other creditors of Sri Lanka, especially multilateral creditors, to take synchronized, similar steps and give effective, strong support to Sri Lanka to help the country emerge from its default status at an early date.

It will work out an arrangement for Sri Lanka to achieve medium- and long-term debt sustainability.

China also calls on the IMF to take into full consideration the urgency of the situation in Sri Lanka and provide loan support as soon as possible to relieve the country’s liquidity strain.

“Going forward, China will continue to support relevant financial institutions in actively working out the debt treatment.

We will work with relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development,” the Spokesperson said.

She said that China hoped the IMF will take into full consideration the situation on the ground in Sri Lanka and provide loan support as soon as possible so as to relieve the country’s liquidity strain.

Off the back of delaying payments for 12 coal shipments to run Norochcholai coal power plant with full capacity of 900 megawatts before the monsoon ( April 20), Lanka Coal Company Chairman of the Lanka Coal Company is going from pillar to post to find Rs15.3 billion required immediately to buy coal for the upcoming week.

Chairman of Lanka Coal Company Shehan Sumanasekera, has raised concerns about the continuation of operations at the Norochcholai power plant if the required funds for coal purchase are not obtained.

He has proposed that the Central Bank of Sri Lanka (CBSL) provide the required amount in dollars as payments for such shipments are usually done in two installments 30 percent at the time of the shipment, and 70percent when the coal is being unloaded.

He noted that two of these payments have already been delayed wing to a lack of funds.and it has to make these payments for three coal shipments from 30 January to 03 February.

The company has paid the first installment of 30 percent of Rs. 1.35 billion for one shipment, however the initial installments for the other two ships are yet to be paid, and these were due on Thursday and Friday of last week”, the Chairman said.

He further noted that a more grave situation is likely to arise in the upcoming week, as the initial payments of 30 percent to two of the three shipments, and the remaining 70 percent due for all three ships will be added to the cost of Rs. 10.74 billion required for coal procurements scheduled for the period between today (04 Feb.) and 10 February.

Previously Sumanasekera requested Minister of Power and Energy Kanchana Wijesekera for US$ 12.32 million, amounting to Rs. 4.56 billion, to pay for the three shipments of coal for which payments are overdue.

For a season Lanka Coal Company (LCC) requires 2 million mt of coal – 33 ship loads to manage the current season and also to store the buffer stock for the Monsoon season.

The LCC is bringing 21 ship loads of coal under already given contracts to two supplier companies early last year, official sources said.

The procurement committee has called for Expressions of Interest (EOI) from prospective suppliers and government to government proposals, on a long-term credit basis to bring these 12 shipments and the EOI was called by LCC for this purpose last year.

For the first time in history, for a contract of over US$ 300 million, an EOI was called from suppliers without asking to submit a bid bond. Further they were not asked to give a performance bond too.

This was a conspiracy to bring unknown paper companies to the bidding process and to drag the supply. (Specially these 12 shipments which were to be supplied coal on credit basis) sources said. .