The prospect of receiving International Monetary Fund ‘Extended Fund Facility (IFF) facility in January and the first quarter of this year is vanishing as the government is still grappling to get assurance from its external creditors for debt restructuring, international analytical reports highlighted.
President Ranil Wcktreamsinghe recently revealed that IMF EFF will be further delayed till the first half of this year as the IMF board approval is unlikely in the first quarter of this year due to uncertainty of debt restructuring talks with creditors still under way.
These latest predictions have negated Central Bank Governor Nandalal Weerasinghe’s unsubstantiated statements of IMF board approval dead lines on December 22 and January 2023 exposing his non-credible utterances with hidden agenda of discrediting the present regime headed by President Ranil Wickremasinghe before the public, local analysts said.
According to Standard Chartered Bank’s latest debt elert report , IMF Executive Board approval for US$ 2.9 billion EFF slated to 2Q, negotiations with commercial creditors is likely to be pushed back to 2H and resolution to be by end-2023
The report warns achieving IMF’s qualitative and quantitative targets including timely restructuring of commercial debt could pose challenges, potentially disrupting EFF program
Opines risks remain in 2023 even after IMF board approval; politics and policy execution delays are key risks, it added.
However President Ranil Wickremesinghe, speaking on Sri Lanka’s ongoing debt restructuring program, stated that the government has already completed the negotiations with Japan – one of the three main bilateral creditors of the island nation including China and India.
President Wickremesinghe also mentioned that Sri Lanka has held discussions with China’s EXIM Bank and by now the government has commenced exchanging views in this regard.
“India’s Foreign Minister is scheduled to visit Sri Lanka on the 19th [of January] to discuss the debt restructuring process. We are proceeding with these activities gradually,” he added.
Stating that the only option Sri Lanka has left now is to seek the support of the IMF, the Head of State noted that the country cannot recover otherwise.
The International Monetary Fund (IMF) is in talks with China to try and convince the country to restructure Sri Lanka’s debt.
During a round-table media interaction, IMF Managing Director Kristalina Georgieva said that the IMF wants to help China understand both the whole issue of debt sustainability and what can be a pathway for their contribution.
Georgieva also said that the IMF is engaging with China to define a pathway for debt resolution of Chad, Zambia, and also Sri Lanka and Suriname.
IMF tries to convince China for SL debt restructuring amidst delays
Former SPC Chairman Dr. Rumi joins SJB Working Committee
Former Chairman of the State Pharmaceutical Corporation (SPC) Dr. H.M.M. Rumi has joined the Working Committee of the Samagi Jana Balawegaya (SJB).
His appointment was made by Leader of the Opposition Sajith Premadasa.
As a former SPC Chairman, Rumi made many revolutionary changes within the Corporation including making it a profit-incurring body.
As a manager and a great administrator, Dr. Rumi implemented practical solutions within the SPC, and contributed to the salary increments of the SPC employees, whilst making the process of providing medicines to the people more efficient.
Dr. Rumi holds his doctorate in Computer Technology from the National University of Technology in Ukraine.
MIAP
Sri Lanka Original Narrative Summary: 15/01
- Fitch Ratings downgrades the National Long-Term Ratings of local banks – BOC, People’s, ComBank, HNB, Sampath, Cargills, DFCC, NDB, Seylan and NTB: warns that a probable default on the sovereign’s local-currency obligations increases the
risk of authorities imposing restrictions on banks servicing their local-currency obligations. - Former CB Governor Cabraal says Sri Lanka will get only USD 362 mn once in 6 months upto USD 2,900 mn in 4 years under the envisaged IMF programme: also says, as prior actions, Forex and Local creditors will have to suffer massive haircuts if the debt advisors and IMF have their way: stresses bilateral financing of USD 4,000 mn was received and a pipeline of USD 10,700 mn secured in the 6-1/2 months he served as Governor.
- CEB sources say Sri Lanka is running out of time to bring 12 coal shipments to operate the Norochcholai coal power plant with full capacity of 900 MW before 20th April and manage the monsoon season from April to Sept.
- Fort Magistrate orders Police to record a statement from former President Gotabaya Rajapaksa pertaining to the Rs.17.5 mn in cash found at President’s House when it was stormed by protestors on 9th July 22.
- Chinese Communist Party Vice Minister Chen Zhou calls on President Ranil Wickremesinghe: hands over a letter from Chinese President Xi Jinping; President Wickremasinghe says Sri Lanka looks forward to China’s support in restructuring Sri Lanka’s debt.
- President Ranil Wickremesinghe says debt restructuring discussions with Japan have concluded and discussions are being held with China’s EXIM Bank this week: Indian Minister of External Affairs also due on 19th January to discuss debt restructuring.
- Director General of Health Services says only DG Health Services is vested with the powers to issue COVID-19 protocols: asserts the protocols issued for inbound tourists by Sri Lanka Tourism Development Authority are void.
- Condominium Management Authority to give approval for pet-friendly apartments: this approval to be given to newly built apartments only: in such instances, the Deed to contain a “pet-friendly” clause.
- Energy Ministry sources disclose that another tanker of Murban oil is awaiting payment of USD 65 mn and is at the Port for more than 3 weeks with CPC unable to secure forex to make payment: CPC also in arrears of over USD 40 mn for the already used crude oil whilst over USD 60 mn worth crude is now in storage pending payment.
- President Ranil Wickremesinghe says he will look into the possibility of an extension of the debt moratorium to protect businesses and provide necessary relief: also says the CB Governor had been asked to look into this matter.
President’s Thai Pongal Message
It is indeed a great pleasure to extend my best wishes to the Hindu devotees of Sri Lanka, on the auspicious occasion of ‘Thai Pongal’, celebrated to thank the Sun, Mother Nature and farm animals, that contributed to the bountiful harvest. This ‘Thai Pongal’ is a celebration with added significance, considering the bumper harvest of the current ‘Maha’ Season, from which the entire nation will benefit.
The ‘Pongal’ festival this year is opportune to signify the Government’s endeavours, to build a self-sufficient country by ensuring food security and nutrition for all , and reviving Sri Lanka being the Granary of the East, as established by our forefathers. Modernization of the Agriculture sector is a priority for the Government in its bid to create it as an effective, sustainable and profitable livelihood, and also serve the competitive international markets.
On this ‘Thai Pongal’ Day, which also signifies productivity and prosperity, it is imperative that we as Sri Lankans unitedly commit to contribute to the Government’s new economic and social reform program, and rebuild the country with economic affluence.
May the ‘Thai Pongal’ celebration today, bestow blessings on the country’s journey towards flourishing economic development. In keeping with the spirit and traditions of ‘Pongal’, also, may success overflow for the people of Sri Lanka to prosper.
President Ranil Wickremesinghe
Showers or thundershowers to occur at several places
Showers or thundershowers will occur at several places in Southern, Sabaragamuwa, Uva, Western and Central provinces during the afternoon or night, and several spells of showers may occur in Eastern province and in Polonnaruwa district, said the Department of Meteorology in a statement today (15).
Mainly fair weather will prevail elsewhere over the island.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
| Condition of Rain: |
| Showers or thundershowers may occur at several places in the sea areas off the coast extending from Batticaloa to Hambanthota via Pottuvil and mainly fair weather will prevail over the other sea areas around the Island. |
| Winds: |
| Winds will be north-easterly and wind speed will be (20-30) kmph. Wind speed may increase up to (40-45) kmph at times over the sea areas off the coast extending from Mannar to Colombo via Puttalam and the sea areas off the coast extending from Hambantota to Pottuvil. |
| State of Sea: |
| Sea areas off the coast extending from Mannar to Colombo via Puttalam and the sea areas off the coast extending from Hambantota to Pottuvil will be fairly rough at times. The other sea areas around the island will be moderate. |
MIAP
President says SL have been able to receive IMF support by building up confidence as a country
President Ranil Wickremesinghe emphasised the need of working within one policy framework by all while facing the economic difficulties the country is confronted with.
The President made these observations during a meeting with the trade union representatives at the President’s Office held yesterday afternoon (13).
Government, semi-government and private sector trade union leaders and representatives participated in the meeting which was presided over by the President and the Prime Minister to discuss the corrective measures that could be taken to find solutions to the economic and financial crisis existing in the country.
President Ranil Wickremesinghe further stated that the government has succeeded in making the negotiations with the International Monetary Fund more successful by being able to build trust as a country.
Stating that the country’s economy is expected to improve after the first quarter of this year, the President expressed his confidence in achieving better economic progress in 2024.
The President pointed out that not only the public sector but the private sector should also be strengthened to provide relief to the people while continuing with the development programs of the country.
President Ranil Wickremesinghe further said that he is aware of the hardships the people are going through today and added that he would somehow provide relief to the public.
The President also pointed out that measures have been taken to provide rice to about 2 million families who are not entitled to Samurdhi benefits during the months of March and April.
The statement made by President Ranil Wickremesinghe is as follows:
“We are well aware that the economy of the country has collapsed. So I know the difficulties faced by the country. We witnessed a drop in the number of employments. Inflation has especially increased the cost of living. Hence people’s lifestyle is changing. The facilities that the people enjoyed earlier are diminishing. This situation has affected every field including education and health. These are the repercussions of this economic collapse. It is useless to talk of the root causes for these issues as they have already happened.
The only option we have now is to seek the support of the International Monetary Fund (IMF). Otherwise, we cannot recover. Hence we must decide if we are to get their support or remain stagnated in this collapsed economic situation. My attempt is to reinvigorate the collapsed economy of the country.
We are currently carrying out a debt restructuring program. We have already completed the negotiations with Japan which is one of the three main countries, Japan, China, and India from whom we have obtained loans.
We discussed with China’s EXIM Bank this week and by now we have commenced exchanging views on it. India’s Foreign Minister is scheduled to visit Sri Lanka on the 19th to discuss the debt restructuring process. We are proceeding with these activities gradually.
Following these negotiations, we will receive USD 2.7 billion from the International Monetary Fund (IMF) in three or four instalments. In addition, we have the capacity to get USD 5 billion from the World Bank, the Asian Development Bank etc. In addition, by the end of the year, a number of different programs are scheduled to recommence with Japan. Hence, we should keep on continuing these activities.
Additionally, we have one more problem. In the Global sphere, the economic growth in Europe and America is now slowing down. Under such a situation, our export market may drop by next year and we have to develop our tourism industry.
We would be able to increase the Inland Revenue by the end of this year. Then some relief could be given to the people. However, before that, the country’s economy should be strengthened where not only the public sector but the private sector as well. Otherwise, there would be a gap.
First, we need to find out what relief could be given to the people. We have made allocations to provide rice to about 2 million families, in March and April, who are not entitled to Samurdhi benefits.
Working people and small-scale entrepreneurs are facing the highest difficulties among people today. Problems have arisen in both public and private banks as well. We must protect the banking system and when they are protected, small-scale entrepreneurs borrowing from such banks could collapse. What is the next step then? How should the economy be managed from 2024? The export economy should be strengthened by protecting the competitiveness of businesses. Similarly, concessions should be given to the working people.
I suggest that not only the public sector but also private businesses, marketing boards, trade unions, farmers, and all should discuss lengthily and at least reach a framework of a social agreement on how we can advance this economic program.”
The statement made by Prime Minister Dinesh Gunawardena is as follows:
Owing to the measures taken by the government in the last few months, the economic situation of the country is changing to some extent. But in order to strengthen the situation in the future, we need to cooperate and improve the products and services. It is on that basis that we can raise our heads as a country and the participation of working people in that endeavour is of paramount importance.”
Union leaders and representatives also spoke at length while President’s Secretary Saman Ekanayake, Finance Ministry Secretary Mahinda Siriwardena, President’s Senior Economic Adviser Dr. R.H.S. Samaratunga, President Trade Union Director General Saman Ratnapriya and other officers attended the discussion.
PMD
Ombudsmen of Sri Lanka & Türkiye signs bilateral cooperation MoU in Ankara
On the sidelines of the International Ombudsman Conference 2023, the Office of the Parliamentary Commissioner for Administration (Ombudsman) of Sri Lanka and Ombudsman Institution of Türkiye has entered into Memorandum of Understanding (MoU) on 11 January 2023 in Ankara.
The Memorandum of Understanding between the Office Ombudsman of Sri Lanka and Ombudsman Institution of Türkiye was signed in the presence of the Speaker of the Parliament of Türkiye Mustafa Şentop, Ambassador of Sri Lanka to Türkiye Hasanthi Urugodawatte Dissanayake, Ombudsman of Sri Lanka Justice (Retd.) K. T. Chitrasiri, and Chief Ombudsman of Türkiye Şeref Malkoç. Ombudsman of Sri Lanka Parliament and Chief Ombudsman of Türkiye signed the MoU.
The main objective of the MoU is to focus on the role of the two institutions in Sri Lanka and Türkiye in the field of protection of human rights and remedies for injustices while protecting citizens from injustice and discrimination. It further creates organizational conditions for cooperation between the two parties in the field of protection of citizens’ rights, complaints and other activities related to the tasks and purposes of the work of each party and thus contribute to the protection of citizens’ rights and freedoms within the powers vested by legislations.
The International Ombudsman conference 2023 under the theme “The future of Human Rights in the 21st Century” is funded by the European Union. More than 70 Ombudsmen participated from different regions Asia, Europe, Africa and Middle East and shared the legal framework of Ombudsman in their own respective countries and their insights on protection of human rights.
Embassy of Sri Lanka
Ankara
14 January 2023
Establishment of Hindi Chair at Sabaragamuwa University
High Commissioner of India Gopal Baglay undertook his first visit to Sabaragamuwa University of Sri Lanka (SUSL), Belihuloya on 11 January 2023. During the visit, he signed a Memorandum of Understanding (MOU) with Vice Chancellor of the University, Prof. R.M.U.S.K. Rathnayake for the establishment of ICCR Chair of Hindi Language at the University. The MoU will pave way for deputation of professors from India to teach Hindi language courses at the University.
2. High Commissioner also announced High Commissioner’s Gold Medal for the best performing student under the newly-established ICCR Hindi Chair. He felicitated winners of Hindi Kavita (poetry) competition organized by the University in collaboration with Assistant High Commission of India, Kandy.
3. The High Commissioner was also the Chief Guest at the first International Conference on Social Sciences and Languages (ICSSL) organized by the Faculty of Social Sciences and Languages, SUSL. ICSSL is an open forum for academics, researchers, students and professionals for presenting their research findings in the Social Sciences and Languages domains. The High Commissioner and the Vice Chancellor jointly launched the online portal of first ICSSL on the occasion.
4. In his remarks as the Chief Guest, the High Commissioner listed out India’s achievements in sustainability and Sustainable Development Goals. Quoting Prime Minister Narendra Modi, he underlined that important steps towards sustainability such as reuse, recycle, re-design, remanufacture etc have been a part of India’s cultural ethos. Highlighting that Sri Lanka has abundant renewable energy potential, he mentioned that India will continue to invest in Sri Lanka to generate more power from sustainable sources of energy. He also pledged the High Commission’s continued support to the University.
5. Education has been a key area of cooperation between India and Sri Lanka. Recently, Indian Institute of Technology, Madras has commenced extension of their Masters Courses in Sri Lanka Technical Campus. In addition, hundreds of fully-funded scholarships are offered to Sri Lankan students, ranging from undergraduate to doctoral studies across disciplines every year. Financial assistance schemes are separately offered to students from economically weaker sections pursuing their studies in Sri Lanka.
***
Colombo
13 January 2023
GTF welcomes targeted sanctions imposed by Canada on former Sri Lankan Presidents and State Officials
In a historic decision, Canadian Minister of Foreign Affairs Melanie Joly, announced (Jan. 10, 2023) that Canada was imposing sanctions under the Special Economic Measures Act against Mahinda Rajapaksa and Gotabaya Rajapaksa, for gross and systematic violations of human rights during the armed conflict in Sri Lanka. The sanctions were also imposed on Sri Lankan Army Staff Sergeant Sunil Ratnayake and Navy intelligence officer Lieutenant Commander Chandana Prasad Hettiarachchi. Sanctions imposed on Sri Lankan state officials – Canada.ca
The same two military officials were previously sanctioned by the US (Dec. 2021) for serious human rights abuses. Additionally, US sanctioned two more Sri Lankan military officials in the past – former army commander Shavendra Silva (Feb. 2020) and head of a clandestine army platoon Prabath Bulathwatte (Dec. 2022).
GTF congratulates and appreciates the actions of the US and Canadian governments and for standing up for justice, rule of law and democratic principles including accountability. GTF is also grateful to all concerned including political and non-political persons and organisations, human rights activists in Sri Lanka and overseas, Tamil diaspora organisations and many others who are working very hard for justice for victims of war.
Clearly a pattern is emerging. After more than a decade of inaction by the Sri Lankan authorities to address war time accountability, the international community is starting to take unilateral initiatives. But what distinguishes the Canadian action is the inclusion of Mahinda Rajapaksa and Gotabaya Rajapaksa in the list. They were the President and the Defence Secretary during the last phase of the war (which ended in May 2009), with command responsibilities.
Sri Lankan civil war was one of the most brutal in the recent history, with UN reporting killings of 40,000 to 70,000 civilians in the last phase alone (other estimates place much higher figures), which was attributed mainly to the brutality of Sri Lanka’s military strategies, and unlawful killings and disappearances.
The Canadian Foreign Minister was emphatic, stating “These sanctions send a clear message that Canada will not accept continued impunity for those that have committed gross human rights violations in Sri Lanka.” Undoubtedly, the walls of impunity Sri Lanka painstakingly built around its leaders have started to crumble.
The timing of the sanction appears to reflect the lack of faith on the new Wickremesinghe Administration to reverse course (from that of its predecessor) on human rights and accountability. Human Rights Watch in its latest World Report (Jan. 12, 2023) argued that ‘the change of Presidents of Sri Lanka in 2022 did not lead to any improvement in the country’s human rights record”, further reinforcing the hopeless situation the country finds itself in.
It is important to highlight the plight of many victims and their families who have been waiting for more than thirteen years without accountability or justice, and the many who have passed on without knowing what happened to their loved ones. The Canadian action provides a sense of relief and perhaps even hope that justice may one day be possible.
Equally important is the message the Canadian sanction conveys to the people and leaders of Sri Lanka – hoping that with diversionary and delaying tactics the accountability concerns will disappear over time is doomed to fail and the better course of action would be to deal with the past openly and honestly, to build a strong and prosperous country for all its communities.
Canadian action also sends clear warning signs to many political and military leaders across the world that serious human rights abuses and unaccountable governance practices will have consequences – irrespective of the time it takes or the high positions the concerned individuals may have occupied.
Respect for human rights and effective universal accountability mechanisms are fundamental building blocks for a rule based world order and green shoots appearing across different countries in this regard provide hope for the emergence of a more decent world in the future.
It is in this context that the Global Tamil Forum (GTF) welcomes the historic decision by the Canadian government to sanction two former Sri Lankan Presidents, and calls upon other progressive countries, including India, the US, EU, UK, South Africa, Singapore, Malaysia, Mauritius, Australia and New Zealand, to consider appropriate actions that will resonate with the Canadian initiative.
Parliament to meet from Jan 17 to 20
Parliament will meet from January 17 to January 20, the Committee on Parliamentary Business declared.
Accordingly, Parliament will meet on the said dates at the Committee chaired by Speaker Mahinda Yapa Abeywardena, said Secretary General of Parliament Dhammika Dasanayake.
Parliament meets every day at 9.30 am and every day except Friday 20th 9.30 am – 10.30 am has been allotted for questions for oral answers. On next Tuesday 17 th from 10.30 am to 5.00 pm the regulations published in the Extraordinary Gazette No. 2307/12 and 2308/26 under the Import and Export (Control) Act and Regulations in the Gazette No. 2308/51 under the Foreign Exchange Act are to be approved following the debate held, the Secretary General said.
After that, the Local Authorities Elections (Amendment) Bill (No. 126) presented by MP Imthiaz Bakeer Markar and the Local Authorities Elections (Amendment) Bill (No. 160) presented by MP Premnath C. Dolawatta as private member’s bills are to be referred to the Legislative Standing Committee following the second reading.
Then from 5.00 pm to 5.30 pm, the debate at the adjournment time is scheduled to be held according to the motion moved by the Opposition.
It has also been decided to hold the debate on the second reading of the Bureau of Rehabilitation Bill on Wednesday, January 18 from 10.30 am to 5.00 pm. 22 motions regarding the Annual Reports of various statutory institutions which were approved by the Ministerial Consultative Committees of Parliament are also scheduled to be submitted for approval.
Then time has been allotted for the questions at the adjournment time from 5.00 pm to 5.30 pm. Meanwhile, it has been decided to hold a meeting of the Committee on Parliamentary Business on the 18th at 1.00 pm and if the committee decides, the second reading debate of the Regulation of Election Expenditure Bill is to be taken on the 19th from 10.30 am to 5.00 pm.
Then from 5.00 pm to 5.30 pm, the debate at the adjournment time is scheduled to be held according to the motion moved by the government. On Friday, January 20, from 9.30 am to 5.30 pm, the time has been set aside for the Vote of Condolence on the late Parliamentarians. Accordingly, the condolence will be expressed for the late members Upali Marvyn Senarath Dasanayake, Dr. Neville Arthur Fernando, Gunaratne Weerakoon and Raja Collure.