1. President Ranil Wickremesinghe says his Govt took many difficult economic measures to stabilize the economy & efforts are now being made to ensure economic growth:
   also says the Govt received the required assurance from the Chinese Exim Bank: asserts the Letter of Intent was sent to the IMF.
2. Elections Commission says the most suitable date for the Local Government Election is 25th April since the poll can’t be conducted on 9th March as planned.
3. IMF MD Kristalina Georgieva welcomes Sri Lankan authorities’ actions in taking “decisive policy actions and obtaining financial assurances from all major creditors including China, India & Paris Club”: says IMF’s EFF will support the authorities’ ambitious reform programme to set the country “on a trajectory of strong and inclusive growth”: analysts point out that many countries have experienced serious economic and political turmoil while following IMF programmes.
4. CB Governor Nandalal Weerasinghe says Sri Lanka had fulfilled all IMF conditions with the recent interest rate hike: confirms the CB has moved to a market-determined exchange rate policy: also says he is hopeful the IMF bailout would be approved this month.
5. LKR appreciates further against USD with buying rate at Rs.315 & selling rate at Rs.335: however, many analysts expect the LKR to start depreciating soon, since the Central Bank is now precluded from “pegging” the LKR to the USD as per IMF instructions: analysts also point out that in many countries in similar situations, their local currencies have depreciated extensively.
6. Sex industry survey in Sri Lanka shows more men between 20 & 40 years, have registered on websites offering ‘male escort’ services after the economic crisis took a turn for the worse over the last few months: study shows more women are also turning to sex work to survive.
7. Top economist Dr Howard Nicholas raises serious concerns over too much independence to the Monetary authority via the new Central Bank Bill: says the Bill, if passed, will shift Parliament’s control of the state’s finances to an unelected body.
8. SLPP MP and COPE Chairman Dr Ranjith Bandara says former Finance Minister and SLPP Visionary Basil Rajapaksa played a major role in securing IMF assistance: asserts incumbent President should be thanked for the progress: claims Rupee is stabilizing,
   economy is recovering, foreign reserves are increasing and tourism is picking up.
9. Colombo Stock Exchange ASPI sharply increases by 198 points to 9,643: Turnover Rs.3.43 billion.
10. Two State Officials assert Sri Lanka expects to raise USD 4.5 bn from selling profitable and loss-making SOEs: the list numbering 14, to include SLT, Litro Gas, Sri Lankan Catering, Airport Ground handling, Hilton Hotel and “others” which have not been named: restructuring of SOEs is said to be one of the key conditions for the 4-year USD 2.9 bn IMF loan.

Haritha Aluthge, Secretary of the Government Medical Officers Association, says that 40 trade unions, including GMOA, have decided to take a trade union action that will lead to a shutdown of the entire country by March 15.

Haritha Aluthge said this while speaking to the media after a special discussion held yesterday (07) by the Union of Professionals in Colombo.

Despite the economic challenges the country is currently facing, I am extremely pleased that Women’s Day is being celebrated on this occasion, that too under the theme “She is the pride of the Nation”, reflecting the pride, honour and strength of women.

It is gratifying to note that women account for more than half of the Sri Lankan population, and is among the social development indicators of the world’s developed countries. Today uniquely, the literate Sri Lankan woman, professionally contributes significantly to the country’s economy, and therefore is a strength of the nation.

I recall that the Ministry of Women’s Affairs of Sri Lanka was temporarily designated as one of my portfolios, with the objective of maximizing the contribution of this country’s women, in the journey to build a resilient nation, by utilizing their multiple attributes.

The Government is further committed to increasing women participation in management and political decision-making, and therefore has implemented a comprehensive program to secure an increase of women’s representation not only in Parliament, but also in the public and private sectors.

In addition, the measures required to present to Parliament, the Act on Gender Equality and Women’s Empowerment have already been initiated. It is also envisaged for a National Women’s Commission to be established as an independent body through an Act of Parliament. Further, the need to appoint an Ombudswoman as well as women to Directorate Boards in the fields of plantations and apparel have been recognized.

The Government has already implemented plans to empower women with required skills based on equality, in order to broadly contribute to the country’s economy, with the goal of creating a generation of courageous women, who understand their role in the contemporary world.

I extend warm greetings on this International Women’s Day, being confident of the support of the female generation of this country in its entirety, in order to facilitate the Government’s new reform program in rebuilding the country’s collapsed economy and create a successful “Developed Nation in 2048”.

The Central Bank of Sri Lanka Bill was presented to the Parliament yesterday (07) by the Leader of the House and Minister, Hon. (Dr.) Susil Premajayantha for its first reading.

This Bill was presented for ancillary matters including the establishment of the Central Bank of Sri Lanka in order to provide financial and administrative independence, and the removal of the

Monetary Law Act currently established by the Central Bank. According to the new Bill, the autonomy of the Central Bank shall be respected at all times and no person or entity shall cause any influence on the Governor of the Central Bank or other members of the Governing Board and Monetary Policy Board or employees of the Central Bank in the exercise, performance and discharge of their powers, duties and functions under this Act or interfere with the activities of the Central Bank.

Moreover, the Bill entails that the primary object of the Central Bank shall be to achieve and maintain domestic price stability. In addition, a ”Board of Governors” will be established to supervise the administration and management of the affairs of the Central Bank and to decide the general policies of the Central Bank other than monetary policy. Its chairman shall be the Governor of the Central Bank and six members with expertise will be appointed to it.

By: Isuru Parakrama

Colombo (LNW): The district returning officers have been informed that the most ideal date for the Local Government Election to be held would be April 25, 2023, the Election Commission said in a statement.

Accordingly, each district returning officer will be announcing April 25, 2023 as the official date for the Local Government Election, the Commission added.

By Uditha Jayasinghe

COLOMBO, March 7 (Reuters) – Sri Lanka expects final approval from the International Monetary Fund for a $2.9 billion loan in the third or fourth week of this month, the president said on Tuesday, adding that new support from China means all funding requirements had been met.

The country of 22 million people is struggling with its worst economic crisis since independence from Britain in 1948.

President Ranil Wickremesinghe told parliament there were signs the economy was improving but there was still insufficient foreign currency for all imports, making the IMF deal crucial so other creditors could also start releasing funds.

“Sri Lanka has completed all prior actions that were required by the IMF,” Wickremesinghe said.

He said the Export-Import Bank of China had sent “a new letter” on Monday, and he and the central bank governor had sent a letter of intent to the IMF.

“As a result of this step and financing assurances from India and the Paris Club, we expect approval for the programme either in the third or fourth week of March,” he said.

The country’s international debt and currency roared higher on the news, with bonds adding nearly 3 cents in the dollar while the rupee jumped nearly 8% to a 10-month high.

It was not clear what new support China, the world’s biggest sovereign creditor, extended to Sri Lanka on Monday. In January, the Export-Import Bank of China offered Sri Lanka a two-year moratorium on its debt and said it would support its efforts to secure the IMF loan, which a Sri Lankan source said at the time was not enough to meet IMF conditions.

China and India are Sri Lanka’s biggest lenders. By end-2020, Sri Lanka owed the Export-Import Bank of China $2.83 billion or 3.5% of the island’s external debt, according to IMF data.

‘A LOT OF POSITIVITY’

In total, Sri Lanka owed Chinese lenders $7.4 billion, or nearly a fifth of public external debt, by end-2022, calculations by the China Africa Research Initiative showed.

Sri Lanka’s rupee hit a mid-rate of 325 on Tuesday, appreciating 12%, analysts said, against the central bank-set spot rate of 337.67. The appreciation was driven by better dollar inflows from tourism and remittances, positive sentiment over imminent approval of an IMF deal and a downturn in imports, analysts said.

“There is a lot of positivity around a possible IMF announcement and more dollar loans are expected with an approval of the bailout,” said Udeeshan Jonas, chief strategist at equity research firm CAL Research.

“Also, speculators who were hoarding dollars have started to panic and convert with the rupee starting to appreciate.”

Sri Lanka needs to repay about $6 billion on average each year until 2029 and will have to keep engaging with the IMF, Wickremesinghe said.

Countries in debt distress such as Zambia and Sri Lanka have faced unprecedented delays in securing IMF bailouts as China and Western economies have clashed over how to provide debt relief. Sri Lanka has been waiting for about 187 days to finalise a bailout after reaching a staff-level deal with the IMF.

This compares to a median of 55 days it took low- and middle-income countries over the past decade to go from preliminary deal to board sign-off, according to public data from more than 80 cases compiled by Reuters.

Chinese Foreign Minister Qin Gang said on Tuesday that his country would continue to participate in the settlement of international debt problems in a constructive manner.

Responding to a question on the sidelines of an annual parliament meeting in Beijing, Qin also said that China should be the last to be accused of causing debt traps in other countries and called on other parties to share the burden.

Source: REUTERS

By: Isuru Parakrama

Colombo (LNW): Ruling Party MP Dhammika Perera has been appointed as a member of the Parliament Committee of Economic Stabilisation, Speaker Mahinda Yapa Abeywardena announced today (07).

The Speaker also announced that MP (Dr.) Gayashan Navananda has also been appointed as a member in the Committee.

By: Isuru Parakrama

Colombo (LNW): Eight Police officers and two residents were injured by a clash between the Police and a group residents during a search patrol in Weeraketiya – Attanayala area.

The clash reportedly broke out when officers of the Weeraketiya Police went to check on some people who were wandering the streets of Attanayala area.

The injured Policemen were admitted to the Karapitiya Hospital and the injured residents were admitted to the Tangalle Hospital.

Six persons including four persons of the same family were arrested in connections with the incident, Police said.

By: Isuru Parakrama

Colombo (LNW): President Ranil Wickremesinghe is currently delivering a special speech in Parliament on the country’s economic situation and the progress of the talks with the International Monetary Fund (IMF).