USAID Administrator Samantha Power met with Sri Lanka’s Foreign Minister Ali Sabry to further USAID’s understanding of the Government of Sri Lanka’s priorities and reforms to address the country’s economic crisis.
The two discussed how USAID can support a viable path forward for Sri Lanka’s recovery and growth.
Administrator Power, who visited Sri Lanka in September, reiterated the U.S. commitment to supporting Sri Lanka to help resolve its complex crisis, including addressing the urgent needs of Sri Lanka’s most vulnerable and marginalized communities.
She underscored that political reforms need to accompany economic reforms in Sri Lanka.
USAID remains committed to further cultivating its longstanding partnership with Sri Lanka to help secure peace and prosperity.
China must cooperate with Sri Lanka in its debt restructure process, said Samantha Power, Administrator of the United States Agency for International Development (USAID), on Sunday, while assuring Colombo of the US’s support.
She expressed this view during her vist to Sri Lanka some times back . Sri Lanka, which opted for a pre-emptive sovereign default in April amid a rapid downturn, must negotiate with its diverse creditors — International Sovereign Bond holders, multilateral agencies, bilateral creditors such as China, Japan, and India — and restructure its outstanding debt to them, in order to qualify for a $2.9 billion-package from the International Monetary Fund (IMF).
“The United States as a creditor, and as a member of the Paris Club, stands ready to participate in the restructuring of Sri Lanka’s debt. It is imperative that all of Sri Lanka’s creditors, most notably the People’s Republic of China, cooperate in this process openly and on comparable terms with each other.”
The observation appeared in line with her remarks in New Delhi in July that opaque Chinese loans financing “headline-grabbing” infrastructure projects in Sri Lanka had contributed to the island nation’s crisis.
It also echoed India’s statement after Sri Lanka reached a staff-level agreement with the IMF that “creditor equitability and transparency are important”. Creditors, she said, had the chance to make “a very positive difference and relieve Sri Lanka of some of its acute debt distress”.
Further, Power said her delegation underscored to the Sri Lankan leadership that political reform and accountability must go “hand in hand” with economic recovery.
“What we stressed is, given the demands and the aspirations of the Sri Lankan people, the importance of being transparent about that roadmap about those intentions, and making sure that the political reform is not somehow portrayed, as it is by some, [as being] in tension with economic stability.”
US says political reforms need to accompany economic reforms in Sri Lanka.
Changes necessary for debt restructuring – IMF Chief
IMF chief Kristalina Georgieva told Reuters Next on Friday (2) that changes to the G20 Common Framework on debt restructuring were needed to speed up debt treatments, freeze debt service payments once a country requested help, and open the process to middle-income countries like Sri Lanka.
“We are concerned that there is a risk for confidence in debt resolution to be eroded at a time when the level of debt is very high,” Georgieva said.
“We don’t see at this point … a risk of a systemic debt crisis,” she said, adding that countries in debt distress were not large enough to trigger a crisis that would threaten financial stability.
Rashika Hennayake
02nd December 2022
PRESIDENT AND PRIME MINISTER PRAISE ROLE MALAYS PLAYED IN NATION BUILDING OF SRI LANKA
PRESS RELEASE
01st December, Thursday, 2022: President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena have applauded the role the Malays have played and continue to perform in the country as part of their congratulatory messages in the ‘Malays of Sri Lanka’.
The ‘Malays of Sri Lanka’ coffee table book, which was launched on November 29, 2022 at the Shangri-La Hotel, Colombo, contained laudatory messages from the President and Prime Minister of Sri Lanka, acclaiming the role of the small Malay community.
“The Sri Lankan Malays are an important segment of this country’s social fabric and have played a vital role in both the history and culture of Sri Lanka,” wrote President Wickremesinghe in his message.
“Despite being one of the smallest communities in Sri Lanka, the Malays have contributed towards the nation building of Sri Lanka as an equal partner in the multi-ethnic mosaic of the country,” President Wickremesinghe noted.
Prime Minister Gunawardena recalled: “Sri Lankan Malays have from pre-colonial to post-colonial times made a colossal impact on the fabric of Sri Lankan society through their invaluable services and sacrifices in the Armed Forces and Police.”
The Prime Minister acknowledged the role statesman and visionary Dr. T.B. Jayah – one of the many prominent Malays highlighted in the 224-page book – had played in the Independence of the island nation from British colonialism.
“Dr. T.B. Jayah is acknowledged as a leader who put his country before community, and I urge the leaders of the Malay community to continue to enrich the noble traditions of Malays through enduring harmony as Sri Lankans,” Prime Minister Gunawardena added.
The book which marked the 150th Anniversary of the Colombo Malay Cricket Club and the 100th Anniversary of the Sri Lanka Malay Association, both in 2022, was written with the aim to tell the story of the Malays to the wider community as well as to serve as an inspiration to the younger generation of Malays.
The first copy was handed over to Chief Guest, Her Excellency Dewi Gustina Tobing. The Ambassador of the Republic of Indonesia to Sri Lanka by Deshabandu M.R. Latiff, Senior DIG (retired), Chair of the Book Committee of the Colombo Malay Cricket Club.
In her address, the Indonesian Ambassador said: “When I first heard of this project, soon after I arrived to take up my post in December, last year, my first thought was how appropriate that a book of this nature should be written on the 70th anniversary of diplomatic relations between our two countries, Indonesia and Sri Lanka, in 2022.”
“The Malays, though a small community, continue to play a key role in all facets of life in this beautiful island-nation of Sri Lanka. Over the centuries they have integrated into the dynamic fabric of this nation and underlined their status as respected members of the public,” she added.
Invited guests at the launch were treated to a colourful and warm traditional ceremony comprising Malay dances and songs from a number of leading Malay artistes including Umara Sinhawansa, Naushad Rassool of Flame, and international disc jockey DJ Mass of the famous hit Pem Kekula. This event was supported by a number of sponsors with Cargills Ceylon PLC being the Platinum Sponsor.
The book is priced at Rs. 10,000 and can be ordered via email to: [email protected] or WhatsApp +94 77 737 9995.
All proceeds from this sale will be utilized for the maintenance of the Colombo Malay Cricket Club (CMCC) clubhouse and grounds.
ENDS
Images
Caption:
First copy of the book presented to Her Excellency Dewi Gustina Tobing, The Ambassador of the Republic of Indonesia to Sri Lanka by Deshabandu M.R. Latiff, Senior DIG (retired), Chair of the Book Committee of the Colombo Malay Cricket Club.
Caption:
Her Excellency Dewi Gustina Tobing, The Ambassador of the Republic of Indonesia to Sri Lanka addressing the gathering
Caption :
Popular Malay songstress Umara Sinhawansa
Caption 4 :
A special recognition to author Alvin Sallay
SRI LANKA ORIGINAL NARRATIVE SUMMARY: 02/12
- Fitch downgrades Sri Lanka’s Long-Term Local-currency debt rating by two notches to “CC” from “CCC”: cites probable local-currency debt default in the face of high interest costs and tight domestic financing conditions: foreign currency debt rating is already at ‘RD’ or in default territory.
- President Ranil Wickremesinghe says Sri Lanka can be made a “regional hub” for education.
- State Minister of Finance Shehan Semasinghe says the deadline for filing income tax returns has been extended by another week from 30th November: no penalty to be charged during that period.
- Minister of Tourism Harin Fernando says Sri Lanka aims to attract 1.5mn tourists in 2023: expects several airlines to fly into the island: also says the real objective is to achieve around 3 mn tourists in 2024.
- PUC Chairman Janaka Ratnayake says crisis brewing re. procurement of coal for the Norochcholai Coal Power-Plant: says 38 coal shipments are needed before 30th April 2023: warns of extended power cuts if procurement is not done in time: risk exists that state-run Lanka Coal Company may not have sufficient rupee or forex funds to pay for those purchases.
- Sri Jayewardenepura University Professor Meththika Vithanage contradicts Foreign Minister Ali Sabry’s claim that the burial of Covid-19 victims could have been allowed, but not done due to opinions expressed by experts: queries as to why the Govt listened to expert opinions only in this case and not in others.
- PUC Chairman Janaka Ratnayake says the Electricity Board has not requested an electricity tariff revision and there is also no requirement for a tariff revision at this time.
- Members of the Women Parliamentarians’ Caucus promote activism to end violence against women and girls: call upon government and all other stakeholders to unite to fight against such violence.
- State Minister of Defence Premitha Bandara Tennakoon says the tri-forces will not be downsized, but right-sized.
- CB Governor Nandalal Weerasinghe asks banks not to compete with each other for deposits: laments some banks are offering 30% for deposits, while 3-month T-Bills at CBSL auctions are today at over 33%.
Interviews for the appointment of UNP seat organizers commenced
Interviews for the appointment of United National Party seat organizers started yesterday (01) at the Sirikota party headquarters.
A number of doctors, lawyers, scholars and representatives of provincial councils and local government bodies who submitted applications for the posts of seat organizers appeared before the interview panels.
These interviews were conducted by the interview panels headed by Deputy Leader Ruwan Wijayawardena, Vice Leader Akila Viraj Kariyawasam, President Vajira Abeywardena, General Secretary Palitha Range Bandara, National Organizer Sagala Ratnayake, Navin Dissanayake, Lakshman Wijemanna and Karunasena Kodithuvakku.
We need to change our lives to face an even bigger economic crisis – Prime Minister
Prime Minister Dinesh Gunawardena says that even in the developed countries of the world, there are long queues and traffic jams to buy essential materials.
“Our country is facing an economic crisis. Today we are well aware of the food security problem that has arisen due to the economic crisis and the world economic recession. Even in developed countries, those countries are transforming into a huge traffic jam to get essential materials in queues. In the same way, we have made it a part of this program in order to increase income by reducing expenditure when facing an economic crisis, and to give priority to effective projects without giving priority to their own wasteful projects. We have never faced such a crisis in our lifetime. In order to face their own even greater crisis, we need to change or control the shape of our people’s life to some extent. If we are able to fulfill this short-term interim chapter in this way, we will be able to divert a large amount of money spent for that purpose from the budget document for public needs.”
Prime Minister Dinesh Gunawardena said this while addressing the Sitawaka Regional Development Committee meeting.
Jiang Zemin oversaw a wave of economic change, but not much political reform
Talking to Mike Wallace on “60 Minutes” in 2000, wagging his finger—and with his ever-mobile face fixed, briefly, in a stare—Jiang Zemin quoted from the Gettysburg address. He had committed it to memory as a student activist, before the Communist Party came to power in 1949. “Government of the people, by the people, for the people, shall not perish from the earth,” he said. His English was not great, but it brimmed with the confidence of a man who was delivering “for the people” all right: material progress on a scale and at a speed that history had not seen before. And it had started on his watch.Listen to this story.
His own rise had been remarkable, too. In 1949 he was just an engineer in a food factory in Shanghai that had once produced one of China’s most popular brands of ice-cream, “Beautiful Woman”. (Appropriate, that, for a man who seldom missed a chance to eye up a pretty girl.) Had his skills not caught the attention of a visiting senior official that year, he might have stayed there. Instead he was groomed for leadership, at first in state-owned firms and then in politics. He seemed destined to be one of the “flower-vases”—all decoration, no action, just a low-key technocrat.
So it surprised him as much as anyone when he was appointed party leader in 1989, after the crushing of the Tiananmen Square protests. He was then an ordinary Politburo member, not a member of the innermost core. His selection looked like a compromise between the then-warring hardliners and reformists. He had shut down a liberal journal in Shanghai well before martial law was imposed in Beijing, so he was no soft touch on dissent. But as mayor and party chief of the city from 1985 to 1989, he also oversaw its awakening from the dark days of central planning.
Few expected this rumpled, unpredictable figure to last long in the hurly-burly of Beijing politics. In any case, it was clear after Tiananmen that Deng Xiaoping was the man who really called the shots. But Mr Jiang listened to Deng’s critics too, which proved a mistake. In 1992 Deng publicly rebuked him, and he caved in, unleashing a wave of change.
For a while it became a free-for-all, with even government departments and the armed forces going into business. By 1994, with inflation soaring, Mr Jiang began hitting the brakes to stop the economy running out of control. But reform surged on. Tens of thousands of state-owned enterprises were closed down or sold, and millions of workers lost their jobs. In the late 1990s sweeping housing privatisation led to a huge transfer of wealth to urban households and the birth of a middle class.
In 2002, in a huge u-turn, he rewrote the rules to allow private entrepreneurs to be members of the party. When conservatives said it would mean the party’s end, he closed down the journals they controlled. The press annoyed him in general; harassed once by reporters, he exploded that they were good at only one thing: “You always run faster than Western journalists.“
A pink swimhat
His power was hidden behind comedy. Uniquely in China’s ruling circle, he did and said whatever he thought. He would spice up diplomatic events by bursting into song: “Love Me Tender” with Fidel Ramos of the Philippines, or “O Sole Mio” at banquets. He once asked Condoleezza Rice to dance, and played the piano and the ukulele. His best-known affair, with a military singer, began when he passed her a slip of paper after a show: “Come and see your big brother when you’re in need.” Most famous was his public swim in Hawaii, in a pinkish-purple swimhat, which was unfavourably compared with Mao’s Great Swim across the Yangzi. Netizens often portrayed him as a toad, mocking his portly physique, square spectacles and improbably high-waisted trousers. It was water off a toad’s back.
Like Deng, he never really retired and remained far more influential behind the scenes than people realised. In theory he was succeeded in 2002 by Hu Jintao, a grey party apparatchik who lacked Mr Jiang’s eccentric self-confidence. In practice, it was still Mr Jiang who really called the shots. He remained commander-in-chief of the armed forces for two more years after handing over his positions as party general secretary and state president to Mr Hu. Even after giving up his military title, too, his power eclipsed Mr Hu’s. He would never let Mr Hu enjoy the most precious title accorded to him: that of being the “core” of the leadership.
He was still a strongman when Xi Jinping took over as China’s leader in 2012. He would boast of the political battles he had won, the Western countries he had visited, the foreign languages he spoke and how he had “seen it all”. His men still filled the Politburo. Under the pretext of waging war on corruption, Mr Xi attacked some of his closest allies, and in 2016 was declared the new core. At the age of 90, “the elder” became a political has-been.
The interview with Mike Wallace, “a comfortable laugh and a chat”, remained a high point for him. He had told Mr Wallace that China had government “by the people”, too—it was just “different” from America’s. Many intellectuals in China privately scorned that notion: they wanted more than mere material progress. Workers laid off from state-owned enterprises could never forgive him for closing so many down. Even those who admired the reforms he oversaw usually (and with some justification) thanked others for them.
Above all, Mr Xi is unlikely to shed tears. To him, Mr Jiang’s rule was a time of drift towards ruin, with the party eaten away by corruption and undermined by ideological laxity. Mr Jiang and Mr Hu had allowed it to disappear from most ordinary people’s lives; Mr Xi has made it his mission to restore the party’s centrality, and his own. His political world has had no room for elders such as Mr Jiang, carping from the wings. Staging his funeral will be politically complicated, in the midst of a surge in covid-19 and public discontent with lockdowns. But with Mr Jiang gone, Mr Xi will feel even more that this world is his.
THE ECONOMIST
Sri Lanka’s inflation falls down for the second month in November
Sri Lanka’s headline inflation based on the Colombo Consumer Price Index (CCPI) for November fell for the second consecutive month to 61.0 percent from 66.0 percent in October as food prices eased off, though the prices of services remained in rather uncertainty, according to the Department of Census and Statistics.
Food prices rose by 73.7 percent in November from a year ago, slowing from 85.6 percent through October while monthly prices declined for the second month in a row by 1.5 percent after falling 2.0 percent a month earlier.
The non-food prices also decelerated marginally to 54.5 percent from a year ago from 56.3 percent in October while monthly prices remained unchanged after rising 0.7 percent a month ago.
People are still paying over 60 percent more for the same basket of goods than a year ago.
A developed economy tolerates no more than 2.0 percent annual inflation and in Sri Lanka this level is set at between 4 to 6 percent, reflecting that the country is still far off from its desired level of inflation.
However, the monthly prices have continued to ease at a faster pace as November prices have fallen by 0.5 percent over the previous month, compared to 0.4 percent decline a month ago.
The monthly prices mostly provide direction of the future inflation path and thus the prices appear to be in a disinflation path, as claimed by Central Bank officials last week.
Meanwhile, the core inflation, which is measured barring the most volatile food, energy and transport costs, rose by 49.4 percent in November from a year ago, easing from 49.7 percent a month ago.
Sri Lankans have been facing runaway inflation since April this year after the Central Bank floated the rupee causing it to lose 80 percent of its value in a matter of months, effectively doubling the prices of everything.
The condition was compounded by commodity shortages, administrative price revisions introduced to power, energy and other utilities, and the sharp increase in taxes.
The Central Bank raised rates at the fastest levels seen in its history this year to curb demand and thereby to bring the prices down.
The Central Bank last week expressed desire to see the short-term rates easing in line with the slowing inflation before it cuts key rates perhaps in a signal to banks to re-open their lending taps, though slowly, to segments which require support to restart and ramp up production.
It also said it would provide liquidity to banks in the inter-bank money market. The Central Bank expressed confidence that it could bring down the inflation to the desired band of 4 to 6 percent by the end of next year.
China reiterates that its aid to Sri Lanka never attached with political strings
China’s assistance to Sri Lanka never comes with any political strings attached, and China never seeks any selfish political gains from its investment and financing in Sri Lanka, Foreign Ministry Spokesperson Zhao Lijian reiterated recently.
China isn’t Sri Lanka’s biggest creditor. The largest share (36 percent) of Sri Lanka’s external debt is to private-sector bondholders, many of them U.S.- and Europe-based institutional investors, official sources revealed.
China is only the fourth-largest creditor, after the Asian Development Bank and Japan.
But many commentators worry more about China because of geopolitics. They fear that China may turn debt into influence and power.
Other countries have expressed concerns that China will use its debt, as well as the possibility for debt relief and currency swaps, to claim a strategic foothold in the region
Foreign Ministry Spokesperson Zhao noted that China fully relates to the difficulties and challenges faced by Sri Lanka and supports relevant financial institutions in discussing with Sri Lanka and properly resolving them.
We have all along provided support to Sri Lanka’s socioeconomic development as long as our ability permits,” Zhao was quoted as saying by Xinhua.
This year marks the 65th Anniversary of China-Sri Lanka diplomatic relations, and the 70th Anniversary of the Rubber-Rice Pact, Zhao said, noting that it is of great significance in building on past achievements and working for fresh progress.
Sri Lanka owed Chinese lenders $7.4 billion – nearly a fifth of its public external debt – by the end of last year, calculations by the China Africa Research Initiative (CARI) published on Wednesday showed, an estimate higher than many others.
The figure was above the “often-quoted 10 to 15 percent figures,” the study said, adding a “significant portion” of the country’s debt to China had been recorded under lending to state-owned enterprises rather than central government.
Export-Import Bank of China (EximBank) and China Development Bank are the two largest Chinese lenders, accounting for $4.3 billion and $3 billion respectively, according to the data collected by CARI at the Johns Hopkins University School of Advanced International Studies.
The island nation kicked off talks with bilateral creditors in September after securing a staff level agreement of $2.9 billion with the International Monetary Fund.
But financing will not flow until the fund’s board approves the deal, a step that requires financial assurances from bilateral lenders.
The latest talks initially expected earlier this month were postponed, casting doubt over how fast the debt rework can progress.
The island nation’s total external debt is $37.6 billion, according to the report. Adding central bank foreign currency debt, including a $1.6 billion currency swap with China, public external debt rises to $40.6 billion, of which 22% is from Chinese creditors.
CARI’s total debt numbers differ from the $46.6 billion tally published by the government in September as it excludes local hard-currency debt and loans to some state-owned enterprises.
The CARI study also identified six different loans to the deep water port in Hambantota from EximBank between 2007 and 2013 for around $1.3 billion.
AG’s dept. delays filing case against Express Pearl : State Minister
More than a year since the sinking of the cargo ship the X-Press Pearl in the island nations territorial waters, Sri Lanka is still grappling to claim compensation of US$ 7 billion from the ship owners which was brought down to $ 4 billion due unknown reasons amidst the delay in finalizing relevant documents and proceed with the case.
An expert committee investigating the extent of damage to the country’s marine and coastal environment has now concluded the disaster to be the worst in terms of chemical and plastic pollution of the sea.
That’s according to Ajith de Alwis, co-chair of the X-Press Pearl damage assessment committee and a professor of chemical and process engineering at the University of Moratuwa.
The committee has submitted its assessment report to the Attorney General’s Office for use in claiming compensation from the Singapore-based operators of the ship.
The State Minister said some 11,061 fisher families from Gampaha District, 3050 families from Colombo and 701 families from Kalutara were affected by the tragedy. “Some 4888 fishermen have lost their livelihood as a result of the disaster,” he revealed.
“Some 1726 metric tons of rubble pellets from the ship have been collected till this date, while arrangements have been made to salvage ship from the sea. The company which owns the ship has given this task to a foreign company.
Also the Minister revealed that former state Minister Nalaka Godahewa and the then Secretary of Ministry of Foreign Affairs Jayanath Kolambage should take the responsibilty of their failure to take prompt action to claim compensations damages caused to Sri Lanka following ship disasters of New Diamond and X-Press Pearl with in the past two years.
X-Press Pearl was carrying 1,486 containers when it caught fire off Colombo on May 20, 2021, and began sinking.
Eighty-one of the containers were labeled hazardous, and the cargo included 25 metric tons of nitric acid — a key ingredient in the production of explosives, and touted as a possible factor for the fire.
There were several explosions, and it took more than a week to bring the fire under control. Attempts to tow the vessel to deeper waters failed, and the freighter finally sank on June 2, 2021, a few kilometers off Sri Lanka’s western coast.
The ship was also carrying 400 containers of nurdles, the plastic pellets from which all manufactured plastic goods are made.
The spill of the more than 50 billion pellets made this the worst plastic marine pollution event in the world, with the pellets quickly spreading along the beaches of Sri Lanka’s western coast.
In the aftermath of the ship accident, marine biologists noted an unusually high number of sea turtle mortalities, which they suspect was the result of the pollution, but for which they currently lack definitive evidence.