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High Commissioner Moragoda meets Finance Minister Sitharaman to discuss the way forward in bilateral economic cooperation

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Sri Lanka’s High Commissioner to India Milinda Moragoda met with the Minister of Finance and Corporate Affairs of India Smt. Nirmala Sitharaman in New Delhi on 22 March 2023.

This was the latest of a series of meetings High Commissioner Moragoda has had with Minister Sitharaman since November 2021 on Indian economic cooperation and assistance to Sri Lanka in the context of the present economic crisis.

At the outset, High Commissioner Moragoda thanked Minister Sitharaman for the leadership that the government of India took towards the realization of the International Monetary Fund’s Extended Fund Facility (EFF) Arrangement for Sri Lanka. He particularly thanked Minister Sitharaman for her personal involvement in taking up Sri Lanka’s case with bilateral development partners as well as multilateral financial agencies including the IMF in this context.

Minister Sitharaman and High Commissioner Moragoda also discussed the way forward in bilateral economic cooperation. The ways and means to attract Indian investments to Sri Lanka, enhance bilateral trade particularly through Indian Rupee trade expansion and increasing the inflow of Indian tourists to Sri Lanka were explored and discussed. The Minister and the High Commissioner agreed that these measures could form part of Sri Lanka’s economic recovery.

High Commissioner Moragoda also presented Minister Sitharaman with a copy of the publication “Geoffrey Bawa; Drawing from the Archives”, which contains the drawings of Sri Lanka’s iconic architect the late Geoffrey Bawa. The publication was presented to her as a memento to mark the opening of the two month- long exhibition “Geoffrey Bawa: It Is Essential To Be There” which was inaugurated by the External Affairs Minister of India Dr. S. Jaishankar on 17 March 2023 at the National Gallery of Modern Art in New Delhi.

High Commission of Sri Lanka

New Delhi

22 March 2023

Presentation of Letters of Credence – Australia

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The High Commissioner to the Commonwealth of Australia, Chitranganee Wagiswara presented her Letters of Credence to the Governor General AC DSC (Retd.) David Hurley on 16 March 2023 at the Government House, Canberra.


The formal ceremony included a guard of honour and a luncheon hosted by the Governor General to the three High Commissioners/Ambassadors who presented credential on that day.


The High Commissioner had a separate audience with the Governor General joined by the First Assistant Secretary of the Department of Foreign Affairs & Trade of Australia and the Senior Representative of the Government House.

During the discussion the High Commissioner conveyed the greetings of the Sri Lanka President, Ranil Wicremesinghe to the Governor General.  While expressing his good wishes to the Sri Lanka President, he congratulated the High Commissioner on her appointment and conveyed his best wishes for a successful tenure in Australia.



The High Commissioner spoke briefly on the political, economic and social developments in Sri Lanka and the challenges and priorities of the government.  In this context, the High Commissioner thanked the Australian Government for the assistance granted to Sri Lanka in the form of medicine and food to tide over the difficult period last year.

It was noted that Sri Lanka and Australia have maintained close and cordial bilateral ties over the years and both sides were of the view that the friendship and cooperation that  exists between the two counties could achieve greater heights in the years to come.

The High Commissioner was accompanied by Deputy High Commissioner Chamari Rodrigo, Minister U.G.C Abeyrathna, and Counsellor (Defence) Capt. Sanjeewa Kathriarachchi.

High Commission of Sri Lanka

Canberra

20 March 2023

Let us stand against suppression against ‘Siyata’ media network and harassing Journalist Lal Hemanta Mavalage: FMETU

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The Federation of Media Employees Trade Unions strongly condemns the ongoing attempts to abuse parliamentary privileges to suppress the popular TV program ‘Televakiya’ and to intimidate its editor Lal Hemantha Mawalage, a veteran journalist attached to the Siyata Media Network. The Televakiya is a current affairs program that has become massively popular among TV audiences in recent times for its unafraid stance in criticizing the wrongdoings of the government. In return, the government is now trying to make use of the provisions in the Parliament Powers and Privileges Act to muzzle the media by summoning the journalists before Parliament Privileges Committee to question and institute legal actions against them. This highhanded action amounts to a serious threat against the freedom of expression.

Lal Hemantha Mawalage is a senior journalist who started his career in broadcasting at the Sri Lanka Rupavahini Corporation. Since his inception there on Dec 28, 2008 he worked hard to stand against unjust and corruption. Because of his work, he had once come under a brutal attack from Mervyn Silva, a cabinet minister of the Mahinda Rajapaksa government. Mawalage had to flee the country to save his life in that instance. Up until now, there is no formal investigation into this to bring the culprits before justice.

We urge President Ranil Wickremesinghe to stop immediately the suppression of the media and journalists and remind him and his government that it is their duty to bring justice to the journalists who had been killed, maimed and became victims of enforced disappearances in the recent years. We, the Federation of Media Employees Trade Unions, emphasize that freedom of speech is a foundation of a democratic society, is a powerful value to social, economic, and political freedom.

The FMETU is a member organization of the International Federation of Journalists is the world’s most powerful media organization with a membership of more than 600,000 journalists from 146 countries, and 167 media organizations, and we jointly urge the government to stop immediately the attempts to make use of powers to parliament to gag journalists. We also call on people’s representatives in Parliament to oppose the government’s plans to punish the Siyata Televakiya, which stands for the traditional characteristics of Public Service Journalism.

Dharmasiri Lankapeli
General Secretary
Federation of Media Employees’ Trade Unions

Foreign Minister visits the United Kingdom for Commonwealth Foreign Affairs Ministers’ Meeting 

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Minister of Foreign Affairs Ali Sabry participated in the 22nd Commonwealth Foreign Affairs Ministers Meeting (CFAMM) in London on 15 March 2023.  During the visit, he also attended the Commonwealth Day ceremonies celebrating 10 years of signing the Commonwealth Charter by Her Majesty the late Queen symbolizing the shared values and principles of member nations.

Addressing the CFAMM at Commonwealth headquarters, Minister Sabry reaffirmed Sri Lanka’s active engagement and spoke on the themes of climate financing for environmental sustainability; the need to leverage intra commonwealth trade for food & energy security and support the twin transition to a digital and greener future; and building resilient societies through democracy.  He articulated the need for setting up a central body to enable regulations on digitization & digital assets expressing that Commonwealth can play an important role.  He also drew attention to setting up of a climate change university in Sri Lanka, which was first mooted by President Ranil Wickremasinghe.  In his meeting with Commonwealth Secretary General, Patricia Scotland KC, both sides discussed engaging the Commonwealth to accelerate Sri Lanka’s sustainable development.

Minister Sabry during this visit, attended a series of events to mark the Commonwealth Day on 13 March, including a wreath – laying ceremony in memory of fallen Commonwealth servicemen and women, followed by a special service at Westminster Abbey in celebrating the diversity of cultures which featured a performance by Sri Lankan youth. The Commonwealth Flag for Peace was raised along with members’ flags to recognize 2023, as Commonwealth Year of Peace.  The events concluded with a reception for visiting dignitaries hosted at Buckingham Palace by King Charles III, addressing the Commonwealth as its Head for the first time.  

On the sidelines of the Commonwealth events, Minister Sabry met with Anne-Marie Trevelyan, the Minister of State for Indo – Pacific at the Foreign Commonwealth Development Office of the UK. Lord Mervyn Davies of Abersoch, UK Prime Minister’s Trade Envoy to Sri Lanka had a meeting with Foreign Minister Sabry, particularly concentrating on the economy and developing further the trade and investment links between the two countries.    

At both these meetings, Minister Sabry apprised the UK side of the advanced stages in the debt restructuring process and thanked the bilateral creditors and Paris Club members for the support and cooperation extended towards Sri Lanka in accelerating the process. 

In addition, on the margins of CFAMM, Minister Sabry met with James Cleverly, Secretary of Foreign, Commonwealth and Development Office of the UK and with Foreign Ministers of Malaysia, Rwanda and the State Minister of Foreign Affairs of Pakistan.  

Minister Sabry, had an interactive session in the UK Parliament with a cross-section of the British Parliamentarians over ‘Ceylon Tea’ which was organized by the High Commission of Sri Lanka in London together with Sri Lanka Tea Board.  The session included remarks by the Foreign Minister and UK’s Minister of State for International Trade, Nigel Huddleston.  

The visit concluded with a discussion the Foreign Minister had with the British – Sri Lankan community on ways and means of contributing to Sri Lanka’s development process. 

Ministry of Foreign Affairs

Colombo

20 March 2023

Our gratitude to the President for his excellent leadership in bringing the agreement with the IMF- Minister Jeevan Thondaman

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Jeevan Thondaman, general secretary of the Ceylon Workers’ Congress and minister, expressed his gratitude to the President for his excellent leadership in bringing the agreement with the IMF to a successful conclusion despite the concerns and criticism of the political opposition.

He made this statement in response to the International Monetary Fund Executive Committee’s acceptance of the provision of loan facilities to Sri Lanka.

He added the following in this regard:

“Within days after entering bankruptcy, our nation had no choice but to turn to the International Monetary Fund for assistance. Economic reforms were also made for this reason.

16 times, Sri Lanka has requested assistance from the International Monetary Fund. The promises, however, were not kept. This made it extremely difficult to this time receive loan approval. International financial organizations also placed Sri Lanka lower on the data list than other countries.

In light of this, the President has successfully negotiated diplomatically with India, China, Japan, the Paris Club, and other nations to secure approval for a loan from the International Monetary Fund.Now Sri Lanka can sustain itself and move forward, Institutions of finance will also loosen their limits on Sri Lanka..

In that regard, I would like to express my gratitude to the President, the IMF chiefs, and the nations, including India, for their cooperation.

G.Krishanthan – 0779166581, 0779775719

Media Secretary

Ministry of Water Supply and Estate Infrastructure Development

Sri Lanka to start next round of talks with creditors in April

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COLOMBO, March 22 (Reuters) – Sri Lanka will kick off the next round of talks with creditors in the third week of April, President Ranil Wickremesinghe said on Wednesday, adding that the debt-stricken nation has started to receive funds from the International Monetary Fund.

The IMF has released the first tranche of about $330 million, part of a nearly $3 billion bailout approved by it on Monday, Wickremesinghe told parliament.

“This will create opportunities for low-interest credit, restore foreign investors’ confidence and lay the foundation for a strong new economy,” he sa

The IMF bailout is expected to catalyse additional support to the tune of $3.75 billion from the likes of the World Bank, the Asian Development Bank and other lenders. It also clears the way for Sri Lanka to restructure a substantial part of its $84 billion worth total public debt.

Reuters Graphics Reuters Graphics
Reuters Graphics Reuters Graphics

Sri Lankan officials will start the next round of talks with bondholders and bilateral creditors in the third week of April, Wickremesinghe said, adding that a fully transparent process will be followed.

Sri Lanka also aims to reduce inflation to a single digit by mid-2023 and later to 4%-6%, Wickremesinghe said. The country’s National Consumer Price Index (LKNCPI=ECI) rose an annual 53.6% in February.

This was the 17th IMF bailout for Sri Lanka and the third since the country’s decades-long civil war ended in 2009.

Economic mismanagement coupled with the impact of the COVID-19 pandemic left Sri Lanka severely short of dollars for essential imports at the beginning of last year, tipping the island nation into its worst financial crisis in seven decades.

Unlike previous bailouts, which were mainly used to bolster foreign exchange reserves, the funds from the current programme can also be used for government spending, senior IMF official Masahiro Nozaki said on Tuesday.

Jaya Container Terminals Ltd gains phenomenal growth and turnover

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Jaya Container Terminals Limited (JCT Limited), a fully owned subsidiary of the Sri Lanka Ports Authority (SLPA), has seen phenomenal growth and turnover in the recent past, despite the fuel crisis that prevailed in Sri Lanka.

This is largely due to the fact that JCT was able to provide Marine Gas Oil (MGO) to various segments of the private sector that required fuel for their daily operations. This included the garment industry, the tourism industry and much more.

The provision of MGO to these sectors was an additional service provided by JCT that resulted in an exponential increase in revenue and profit.

Another significant contributor to the company’s forward march was its ability to transform from High Sulphur Fuel to Low Sulphur Fuel.

This occurred in 2020, due to a requirement from the International Maritime Organization (IMO), to accommodate only LSFO. However, JCT was able to accommodate High Sulphur Fuel also if required. This also added significantly to the income that was reflected in the year 2022.

Since 2008, JCT’s primary business has been to store marine fuel, including Low Sulphur Fuel (LSF) and Marine Gas Oil (MGO) for seagoing vessels. The facility spans over 9 acres and initially consisted of 13 fuel tanks with the capability to store a capacity of 35,000 MT of marine fuel.

JCT’s reached unprecedented heights as it accumulated a 275% increase in profits in 2022. This was due to an unprecedented earning of Rs. 608 million in revenue for 2022, which is a 104% increase from the year 2021 and a 180% increase from 2020. The fluctuating currency exchange rates also played a role in the increase of the profits, adding 40% to it.

This revenue has a significant impact on the country’s economy, as the Colombo Port plays a direct and integral role in it. A plethora of JCT’s clientele also play a significant role in the provision of fuel for the ships that visit the port, which is in turn a vital service for the Colombo Port.

The company is now in the process of enhancing its storage capacity in order to facilitate larger volumes of fuel at a lower cost. This will also allow JCT’s customers to distribute fuel at a lower cost, which in turn is an advantage to the Port of Colombo as it can provide competitive prices for those who require marine fuel.

By the end of 2021, the JCT had constructed an additional 3200 MT capacity tank, which was opened in 2022. There are plans that have been set in motion to install even more tanks in the future. Additionally, a brand-new fire safety system was also introduced as a safety measure.

Sri Lanka to receive the first tranche of US$2.9 billion IMF EFF in 2 days

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Sri Lanka is expected to receive the first tranche of funds from the International Monetary Fund (IMF) in 2 days, Peter Breuer, Chief of the Debt Capital Markets Division, Monetary and Capital Market Department at the IMF said.

He said Sri Lanka has incorporated a number of measures to commence the reforms process, as agreed upon with the IMF.

Breuer also said that steps are being taken to make the Central Bank of Sri Lanka more independent.

The IMF also said that the disbursement of the funds under the agreement with Sri Lanka, will be tied to reviews of Sri Lanka’s economic policies, which will take place every 6 months.

The IMF Executive Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 2.286 billion (about US$3 billion) to support Sri Lanka’s economic policies and reforms.

Sri Lanka has been facing a severe economic crisis as a result of past policy missteps and economic shocks. We have been deeply concerned about the impact of the crisis on the Sri Lankan people, particularly the poor and vulnerable groups, and about the economic costs of the delay in the country’s access to external financing.

The Board approval marks an important step towards the resolution of the crisis—Sri Lanka will immediately receive an initial disbursement of about US$330 million from the EFF arrangement, which is expected to catalyze new external financing including from the Asian Development Bank and the World Bank.

Commendably, Sri Lanka has already started implementing these challenging policy actions. It is now essential to continue the reform momentum under strong ownership by the authorities and the Sri Lankan people more broadly.

The authorities have committed to fundamentally improve public financial management and strengthen the anti-corruption legal framework in line with the United Nations Convention against Corruption.

The economic impact of the reforms on the poor and vulnerable needs to be mitigated with appropriate measures. In this regard, we welcome the authorities’ firm commitment to strengthen social safety nets, including through a minimum spending floor, well-targeted spending through a new Social Registry, and establishment of objective eligibility criteria.

Tax reforms under the program are designed to be progressive, that is, ensuring greater contributions from high-income earners. Efforts to increase tax revenues should be pursued in a growth-friendly manner while protecting the poor and most vulnerable.

Sri Lanka’s public debt, at 128 percent of GDP as of end-2022, is unsustainable. The country is in arrears to all its external creditors.

IMF Board approval of assistance to Sri Lanka required assurances from official bilateral creditors that they will provide debt relief and/or financing to restore debt sustainability consistent with the program, as well as an assessment that the authorities are making good faith efforts to reach a collaborative agreement with private creditors.

It is now important for the Sri Lankan authorities and creditors to closely coordinate and make swift progress towards a debt treatment that restores debt sustainability under the EFF-supported program.

The President’s recent open letter to official bilateral creditors includes commitments to transparency and comparability of treatment for all external creditors, which should help facilitate this process. IMF staff will continue to assist the authorities with creditor coordination in line with the IMF’s policies.

Dilan Perera appointed as Chair of the Sectoral Oversight Committee on Reconciliation and National Unity

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Hon. Dilan Perera has been appointed as Chair of the Sectoral Oversight Committee on Reconciliation and National Unity (21) at the Committee meeting held in Parliament.

Accordingly, Hon. Mayadunna Chinthaka Amal proposed the name of Hon. Dilan Perera whilst Hon. Gevindu Cumaratunga seconded it.


The Chair addressing the Committee stated that as the Chair of the Sectoral Oversight Committee on Reconciliation and National Unity, he is happy that his name was proposed by a Member of the Government where as a member representing the Opposition seconded it with no Member opposing it.

Furthermore, the Chair stated that institutions such as Ministry of Justice, Prison Affairs and Constitutional Reforms, Office for National Unity & Reconciliation, Office on Missing Persons, Office for Reparations, Department of Community Based Corrections, Official Language Commission etc.. are scheduled to be brought before the Committee to discuss the way forward.

Members of Parliament Hon. A. L. M. Athaullah, Hon. Kulasingam Dhileeban, Hon. Mayadunna Chinthaka Amal, Hon. Gevindu Cumaratunga, Hon. (Ms.) Rajika Wickramasinghe, Hon. M. A. Sumanthiran and Hon. Hon. Isuru Dodangoda were present at the Committee meeting held.

Sri Lanka and India discuss way forward in bilateral economic cooperation

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Sri Lanka’s High Commissioner to India Milinda Moragoda met with the Minister of Finance and Corporate Affairs of India Smt. Nirmala Sitharaman in New Delhi (March 21).

Minister Sitharaman and High Commissioner Moragoda also discussed the way forward in bilateral economic cooperation.

The ways and means to attract Indian investments to Sri Lanka, enhance bilateral trade, particularly through Indian Rupee trade expansion and increase the inflow of Indian tourists to Sri Lanka were explored and discussed.

This was the latest of a series of meetings High Commissioner Moragoda has had with Minister Sitharaman since November 2021 on Indian economic cooperation and assistance to Sri Lanka in the context of the present economic crisis.

At the outset, High Commissioner Moragoda thanked Minister Sitharaman for the leadership that the government of India took towards the realization of the International Monetary Fund’s Extended Fund Facility (EFF) Arrangement for Sri Lanka.

He particularly thanked Minister Sitharaman for her personal involvement in taking up Sri Lanka’s case with bilateral development partners as well as multilateral financial agencies including the IMF in this context.

The Minister and the High Commissioner agreed that these measures could form part of Sri Lanka’s economic recovery.

High Commissioner Moragoda also presented Minister Sitharaman with a copy of the publication “Geoffrey Bawa; Drawing from the Archives”, which contains the drawings of Sri Lanka’s iconic architect the late Geoffrey Bawa.

The publication was presented to her as a memento to mark the opening of the two month- long exhibition “Geoffrey Bawa: It Is Essential To Be There” which was inaugurated by the External Affairs Minister of India Dr. S. Jaishankar on 17 March 2023 at the National Gallery of Modern Art in New Delhi.

Meanwhile India and Sri Lanka agreed to increase intensity of bilateral military exercises and vowed to avail maximum benefits from each other’s experience and capacities, a move that came amid China’s attempts to expand its influence in the Indian Ocean region.

The two sides reviewed their defence and security cooperation at the seventh India-Sri Lanka annual defence dialogue that took place in Delhi.

“During the meeting, the ongoing defence cooperation activities between the two countries were reviewed, with both sides agreeing to increase the complexity of bilateral exercises,” the defence ministry said.

The annual defence dialogue is the highest institutionalized interactive mechanism between both the countries.

“Its significance in chartering the future course of the relations between the armed forces of India and Sri Lanka was highlighted by the importance given to the talks by both sides,” the ministry said.

The defence ties between India and Sri Lanka have witnessed steady expansion.In August last, India handed the island nation a Dornier maritime surveillance aircraft.

The aircraft was given to Sri Lanka from the inventory of the Indian Navy to help the country meet its immediate security requirement.

The Indian Navy has been supporting various capacity building measures of the Sri Lankan Navy including providing indigenously constructed Offshore Patrol Vessels (OPVs).