Sri Lanka is to clear another hurdle of massive domestic debt restructuring as external creditors want more details of government debts before formal negotiations, informed sources said.
These external bondholders expressed concern that managing Sri Lanka’s local debt pile will prove costly, which could reduce payments earmarked for foreign bondholders or even trigger another restructuring effort down the road, Bloomberg reported.
Bloomberg quotes the people, who asked not to be identified because the discussions are private, as saying that recommending Sri Lanka follows in Ghana’s footsteps to help its stalled restructuring efforts.
The African country has offered a debt swap plan for local securities in addition to its Eurobond negotiations .The Asian island nation seeks to restructure its Eurobonds while repaying its local-currency obligations in full, the new agency added.
According to available official data total Rupee debt is Rs 12.34 trillion of which are bills of 3.78 trillion and bonds of 8.56 trillion.
These Government’s debts are equal to the size of the national economy that the Central Bank is unable to tackle very high inflation purely through monetary policy tightening.
The high cost of rolling over the government’s domestic debt will aggravate the problem. The fiscal solvency and inflation makes monetary policy less effective, even with high interest rates that have a negative impact on investment and growth, economic experts claimed.
Domestic debt restructuring will provide a groundwork for resetting these negative dynamics and achieving conditions conducive to economic growth, with reduced interest rates and reduced inflation, they pointed out.
The present path of quietly restructuring domestic debt through high inflation disproportionately hurts Sri Lanka’s wage-dependent working population and increases poverty.
Reducing the burden of domestic debt through restructuring allows the costs to be targeted progressively to those sectors of the economy that are most equipped to bear the burden of debt reduction.
It is not unusual for countries that enter into insolvency and debt restructuring to fall back repeatedly into the same set of problems.
Currently Sri Lanka faces high risks in poor governance, over-optimistic fiscal targets, and triviality of the debt restructure.
Intrest rates remain at current levels and the government’s highly ambitious targets for increasing revenue are not fully met, the country faces the prospect of a relapse into another debt sustainability crisis in the medium-term.
An early domestic debt restructure can mitigate that risk – even though it cannot compensate for the continuing risks of poor governance, they said.
Sri Lanka’s domestic debt has already been re-structured de facto due to high inflation and rupee depreciation, Sharmini Cooray, a former International Monetary Fund official who is an advisor to President Ranil Wickremesinghe said.
“The high inflation and rupee depreciation has reduced the real value of domestic debt,” Cooray told an economic policy forum organized by the Ceylon Chamber of Commerce some time back. .
Central bank governor Nandalal Weerasinghe said last week that the country will hold detailed talks on domestic debt treatment only after the IMF loan has been approved.
In the meantime, the monetary authority is talking to local lenders on the debt recast and conducting an asset quality review to gauge any stress in the banking industry, he disclosed.
Sri Lanka compels to clear another hurdle of domestic debt restructuring
100 acres of land to be given back to Tamil people of North
By: Isuru Parakrama
Colombo (LNW): 100 acres of military-acquired land recognised to be owned by the Tamil people of the North will be handed over to their original owners as instructed by President’s Chief of Staff and Senior Defence Advisor Sagala Ratnayaka.
Accordingly, the President’s Chief of Staff has instructed the district secretaries to give back these private lands to their original owners, and by doing so, the ownership of these lands will be transferred to the Tamil people through the district secretaries.
Ratnayaka has instructed that these lands be released to their original owners before February 11, 2023.
The move comes in following a tremendous pressure exerted by the Tamil people of the North demanding their properties acquired by the military, and will be proceeded alongside the 75th Independence Day.
Ratnayaka further emphasised that in any event are there more lands owned by the Tamils, their legal statuses will be reviewed in order to hand them over to their owners, in the goal of developing harmony among the Tamil community.
Ex Speaker Jayasuriya to receive once-in-a-lifetime ‘Sri Lankabhimanya Award’
By: Isuru Parakrama
Colombo (LNW): ‘Sri Lankabhimanya Award,’ the highest award that can be granted to a person once-in-a-lifetime in Sri Lanka, will be awarded to former Speaker Deshabandu Karu Jayasuriya, as agreed by the Cabinet yesterday (30).
A tradition since 1986, the ‘Sri Lankabhimanya Award’ is a once-in-a-lifetime national award granted to a Sri Lankan citizen, or a non-Sri Lankan citizen who has rendered an outstanding service to the nation within the Democratic Socialist Republic of Sri Lanka. This is considered to be the highest award granted to a person within the country.
Mr. Jayasuriya will be given this award in appreciation of his service on February 03, 2023, in accordance with a step taken by President Ranil Wickremesinghe and approved by the Cabinet.
President Wickremesinghe presides over discussions on future activities of Sinhala Cultural Institute
President Ranil Wickremesinghe instructed the Minister of Buddhasasana, Religious and Cultural Affairs Mr Vidura Wickramanayake to prepare and submit a Cabinet memorandum for the upcoming activities of the Sinhala Cultural Institute.
In order to continue the Sinhala Cultural Institute’s activities which protect the nation’s cultural identity, the President also encouraged the formation of a joint committee with the Ministry of Cultural Affairs.
President Wickremesinghe issued these instructions during the discussion held at the Presidential Secretariat yesterday morning (30) regarding the site of the Sinhala Cultural Institute.
The existing problems related to maintaining the Sinhala Cultural Institute were extensively discussed.
The President stated that the building facilities of the institution should be developed and greater attention should be made to producing income through activities fit for the institution because the commercial value of the property where the Sinhala Cultural Institute is located is quite high. He also stated that if any financial provision is required for this purpose, the necessary arrangements can be made to provide it through the Ministry of Cultural Affairs.
The President also pointed out that currently the membership of the Sinhala Cultural Institute is around 300, and by further expanding the membership, new ideas could be obtained by providing opportunities to the educated youth.
Secretary to the President Mr Saman Ekanayake, Secretary to the Buddhashasana, Religious, and Cultural Affairs Ministry Mr Somaratne Vidanapathirana, former Chairman of the Sinhala Cultural Institute Mr Jeevan Kumaratunga and senior officials of Sinhala Cultural Institute were present at this discussion.
PMD
Met Dept issues warning on depression spreading across island
The depression over the Southeast and adjoining Southwest Bay of Bengal, lay centered near latitude 8.1°N and longitude 85.3°E, about 455 km east-southeast of Trincomalee, and it is likely to move west-northwestwards till evening of 31st January then recurve gradually south-southwestwards and cross Sri Lanka coast in the forenoon of 01st February 2023, the Department of Meteorology said in a statement today (31).
Showers or thundershowers will occur at times in Northern, Eastern, North-Central and Uva provinces and in Matale and Hambantota districts.
Sowers or thunder showers will occur at several places elsewhere during the afternoon or night.
Very heavy showers about 150mm are likely at some places in Eastern, Uva and Central provinces and in Polonnaruwa district. Heavy showers above 100mm are likely at some places in North-Western and Northern provinces and Anuradhapura district.
Strong winds about (50-60) kmph can be expected at times over the Eastern, Uva, Western, Central and Sabaragamuwa provinces and in Galle, Matara, Mullaitivu, Jaffna and Kilinochchi districts.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
| The depression over the Southeast and adjoining Southwest Bay of Bengal, lay centered near latitude 8.1°N and longitude 85.3°E, about 455 km east-southeast of Trincomalee. It is likely to move west-northwestwards till evening of 31st January then recurve gradually south-southwestwards and cross Sri Lanka coast in the forenoon of 01st February 2023. It is advised not to venture into fishing and naval activities in the sea areas around the Island. For Southeast Bay of Bengal and South-West Bay of Bengal: Wind speeds will be (40-50) kmph and can increase up to (60-70) kmph in sea areas between (05N – 12 N) and between (79E – 88E). Heavy showers or thundershowers and very rough or rough seas can also be expected in above sea areas. Therefore, naval and fishing communities are advised not to venture into the above-mentioned sea area till 02nd February. Fishing and naval community are requested to be attentive to future forecasts issued by the Department of Meteorology in this regard. |
| Condition of Rain: |
| Showers or thundershowers will occur at times in the sea areas around the Island. |
| Winds: |
| Winds will be north-easterly and wind speed will be (25-35) kmph and it may increase up to (50-60) kmph at times. |
| State of Sea: |
| There’s a possibility to increase swell waves (about 2.5 – 3.0 m height) off the coast extending fromPottuvil to Mannar via Batticaloa, Trincomalee and Kankasanthurai. Sea areas around the Island will be rough and very rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers. |
MIAP
Sri Lanka Original Narrative Summary: 31/01
- Education Minister Dr Susil Premajayantha says even during dark days when power transformers were destroyed and people were not allowed to switch on their lights at homes, the children of this country sat examinations successfully.
- Reports emerge that holders of Sri Lanka’s foreign bonds are seeking greater clarity on the nation’s local-currency debt before they sit down for formal restructuring talks: creditors concerned that managing Sri Lanka’s local debt pile will prove costly.
- CB Governor Nandalal Weerasinghe says country will hold “detailed talks on domestic debt treatment” after the IMF loan approval: previously, Weerasinghe had solemnly pledged local obligations will be serviced and only foreign debt will not be serviced: last month, Fitch cut the rating on local-currency debt to just 2 levels above “default”: however, data shows CB-managed EPF is still investing heavily in Govt securities, greatly risking people’s savings.
- Police say a 7-hour joint operation has been carried out by the STF, Police, Army, and Air Force in the Western & Southern provinces against drugs: also say 285 suspects were arrested including 60 drug operatives and a cache of narcotics seized, including 1kg heroin & 1kg cannabis.
- Constitutional Council approves appointing Justice NBPDS Karunarathne as the President of the Appeal Court and appointing the present President of the Appeal Court Justice KP Fernando as a Supreme Court Judge.
- PM Dinesh Gunawardena says the tourism industry can give the biggest boost to the economy: calls on stakeholders to take “innovative” steps towards its further growth: stresses need to build a network of Honorary Consuls and representatives abroad to introduce and promote tourism.
- Energy Minister Kanchana Wijesekara says 11,219 premises including educational, religious and Govt buildings will be equipped with roof top solar panels under the Credit Line of USD 100 million from the Indian Government for Renewable Energy.
- Case filed against former UNP MP Hirunika Premachandra for alleged involvement in the abduction of a youth, fixed for trial on February 28 by the Colombo High Court.
- Human Rights Commission says a case has been filed before the Supreme Court against CEB, CPC & Power Ministry for failing to abide by the settlement to provide uninterrupted electricity for A/L students during their exam period.
- Sports Minister Roshan Ranasinghe says new regulations are to be introduced soon for appointing members to selection committees of all sports, including Cricket.
Sri Lanka participates at the FITUR International Travel Mart in Madrid, Spain
The Sri Lanka Tourism Promotion Bureau (SLTPB) successfully participated in the 42nd edition of FITUR International Travel Mart held from 18- 22 in Madrid, Spain. The exhibition, which is one of the world’s leading trade fairs for tourism, organized by IFEMA Madrid, brought together 8360 exhibiting companies, 82,000 trade participants, and over 30,000 members of the general public.
The Sri Lanka pavilion was ceremonially opened by Chairman of Sri Lanka Tourism Promotion Bureau Chalaka Gajabahu and Honorary Consul of Sri Lanka in Barcelona Agustin Llanas, along with Sri Lankan travel industrialists.
The pavilion highlighted the country’s rich culture, natural beauty, ayurveda, and other potential tourism offerings. Ceylon tea was served to visitors as part of an effort to promote the product in the Spanish market.
On the sidelines of the fair, SLTPB officials participated in events organized by the World Tourism Organization (UNWTO) and held discussions with Director of Regional Department for Asia and the Pacific UNWTO Harry Hwang to promote Sri Lanka as a tourist destination. The SLTPB and the Embassy of Sri Lanka in France also participated in business meetings, exclusive media interviews, and airline meetings at the fair.
Spain is considered as a high-potential tourist market for Sri Lanka, with 12,895 Spanish tourists visiting Sri Lanka in 2022. The participation in FITUR and the engagements with the media during the fair provided an opportunity to highlight developments in Sri Lanka and create awareness about the destination. The Embassy of Sri Lanka in France extended its fullest cooperation to SLTPB for its successful participation in the exhibition.
Embassy of Sri Lanka
Paris
30 January 2023
Myanmar: Anti-journalist terror has grown in every way in two years of military rule
Since Myanmar’s military seized power two years ago, the figures for their press freedom violations have been truly appalling, says Reporters Without Borders (RSF). To cover up their massacres of civilians and impose their authority, the military – known as the Tatmadaw – have arrested, jailed, tortured and even eliminated journalists who could undermine their control over news and information.
Since the military coup on 1 February 2021, four Burmese journalists have been killed, two of them after being violently interrogated, beaten and even mutilated. No fewer than 130 journalists have been arrested and jailed, and 72 are still being held. Dozens of cases of torture have been reported. For the past two years, the unrelenting crackdown on press freedom in Myanmar has escalated steadily in every respect, including the territory covered, the methods used and the length of the sentences.
“RSF has been constantly appalled by the figures it has been compiling for the tragedy in Myanmar. The entire country has been subjected to an implacable repressive machine. The prison sentences passed on journalists keep getting longer. All this has but one goal – to prevent the world from knowing what is happening under Myanmar’s generals. We call on the United Nations special rapporteur responsible for Myanmar, Tom Andrews, to put this tragedy back at the centre of the international agenda.”
Daniel Bastard
Head of RSF’s Asia-Pacific desk
Myanmar is second only to China in the number of journalists held in its prisons but, in relation to population size, it is the world’s biggest jailer of media personnel. At the same time, the terror orchestrated by the military has proved to be extremely methodical, as seen in this graph showing the rate of growth in the total number of journalists held for at least 48 hours over the past two years and the growth in the total number of prison sentences passed on journalists.
Harsher methods
The number of detained journalists increased steadily during the first 12 months after the coup. A total of 115 journalists were arrested and jailed during this period, as against 15 the following year. But this fall does not indicate any let-up in the crackdown. The journalists who covered the big wave of protests after the coup are now either in prison or have fled the country or have gone into hiding. Almost all of the 15 journalists arrested and jailed in the past year were tracked down in the places where they were hiding.
The slowdown in the growth of the number of arrests has been accompanied by an equally disturbing increase in the number of journalists receiving prison sentences. Ten journalists had received prison sentences in December 2021. Five times as many have received prison sentences now. Military courts have clearly replaced soldiers in the field as the main tool for crushing any hope of a victory for journalistic freedom in Myanmar.
Longer sentences
At the same time, the jail sentences being imposed by the military courts have been getting steadily longer, reaching a record 15 years in prison in the case of freelance reporter Myo San Soe in late 2022. The combined number of years in prison to which Burmese journalists have been sentenced rose from 58 at the end of 2021 to 189 at the end of 2022.
Immediately after the coup, the military junta gave itself a new repressive tool in the form of Section 505 (a) of the penal code, under which spreading “false news” about the military government’s representatives is punishable by three years in prison. But, over the months, the courts set up inside the prisons have started to sentence journalists to much longer prison terms under such new charges as “terrorism,” “espionage” or just “acts prejudicial to the security of the state.” They seem ready to use any grounds for increasing sentences and intimidating the media.
More territory covered
Finally, an analysis of the places where journalists are detained shows the degree to which the junta has succeeded in deploying its repressive machinery throughout the territory it controls. Some 30 journalists are held in Yangon’s notorious Insein prison, but RSF has been able to identify no fewer than 26 other detention centres.
A few border regions are nonetheless beyond this relentless machinery’s reach, namely Chin State in the west, Kachin State in the north, and Shan State in the east. These three regions are traditionally dominated and run autonomously by rebel groups that are hostile to the Tatmadaw. In other words, the junta wields no direct authority there and journalists are relatively free to work.
A sign of hope should therefore be seen in this part of the grim overall picture. In part of the country, civil society still manages to escape the junta’s grip and demonstrates an unquenchable thirst for news and information. It shows, clearer than ever, the importance of press freedom in the fight for democracy in Myanmar.
REPORTERS WITHOUT BORDERS / REPORTERS SANS FRONTIÈRES
Three judges appointed to Supreme Court and Appeal Court
The Constitutional Council gathered today (30) considered the recommendation of President Ranil Wickremesinghe to appoint K.P. Fernando, President of the Court of Appeal as a Judge of the Supreme Court, to the post vacant upon the retirement of L.T.B. Dehideniya, and the recommendation was approved on a unanimous vote.
The Constitutional Council also unanimously approved the nomination of N.B.P.D.S. Karunaratne, an Appeal Court Judge, to be appointed as the President of the Appeal Court, and the nomination M.A.R. Marikkar, a High Court Judge, to be appointed as a Judge of the Appeal Court.
The Council further concluded that an advertisement be displayed on newspapers on February 01, 2023, calling for applications for the appointment as Members of the Commission specified in Schedule to Article 41B of the Constitution. Draft format of the application to be published on the official website of the Sri Lanka Parliament and the deadline to submit applications is February 15, 2023.
These conclusions were made as the Constitutional Council met today in Parliament presided by Speaker Mahinda Yapa Abeywardena.
Prime Minister Dinesh Gunawardena, Leader of the Opposition Sajith Premadasa, Minister Nimal Siripala De Sivla, MPs Sagara Kariyawasam, and other other council members Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundara and Dr. Dinesha Samaratne were also present at the meeting.
MIAP
Foreign Employment Minister Nanayakkara says SL’s bankrupt status will be removed in a few months
The bankrupt status embodied to Sri Lanka will be lifted in a matter of a few months this year, said Labour and Foreign Employment Minister Manusha Nanayakkara, addressing a public rally.
Claiming that Sri Lanka is ‘not’ a bankrupt nation, Nanayakkara emphasised that the government has started repaying the loans and is able to bring in new investments.
He added that salaries will be increased and taxes and bank interest rates will drop, in what he described as Sri Lanka’s path to be commenced to move forward.
Many people are unable to accept this progress and hence their willingness to sabotage it, he added.
MIAP