By: Staff Writer

Colombo (LNW): The government authorities are carrying out a domestic debt restructuring process or debt optimization (central bank’s term) under a well designed  plan to attract the attention of creditors and if it fails to gain their consent then  avoiding doing more harm than good might be very difficult, official sources claimed.

To ensure that it is done right the first time, sovereign domestic debt restructuring should be part of a broader policy package that effectively addresses the fundamental problems and debt vulnerabilities, it added.

The island nation is persuading domestic creditors for a moratorium on debt repayments to manage Sri Lanka’s public debt rollover risks in the future as it has become essential to tackle the debt crisis.

At the recent investor presentation on DDO conducted on July 07, the response of participants was positive but there was no indication for an agreement for the government’s policy actions and a comprehensive debt treatment, informed official sources reveled.

To garner broad creditor participation in the restructuring and reduce the likelihood of costly litigation, the process of restructuring has to be perceived as fair and transparent.

International Monetary Fund (IMF) is likely to suggest some amendments to their Debt Sustainability Analysis (“DSA”) targets by considering the slow progress of achieving economic reform program commitments to ensure that the country restores the sustainability of its public debt

Its first policy review in September, the IMF may direct Sri Lanka towards the second Domestic Debt Optimization (DDO) strategy if the targets of the current plan are not achieved, official sources warned.

According to the central bank governor Nandalal Weerasinghe “if the country deviates from the current path, there could be another domestic debt optimization as well as another default and bankruptcy.

On the other hand the government is facing a daunting tasks of reducing its debt stock to 95 percent in 2032 from 128 percent in 2022, bringing down of GFN target to 13 percent of GDP in 2027-32 from 34.6 percent in 2022 and reduce FX debt service target to 4.5percent of GDP in 2027-32 from 9.4 percent in 2022.

Although it is branded as double edged sword by opposition politicians and some economic experts, the need to manage Sri Lanka’s public debt rollover risks in the future has become essential to tackle the debt crisis, former finance minister Ravi Karunanayake disclosed.  

Restructuring domestic debt is a tool for the country facing fiscal and economic stress. And it should not drag into the second round of restructuring, he said adding that IMF is flexible to consider the government’s situation and accommodate its proposals and explanations relating to implantation of economic reforms. 

Colombo (LNW): The Foreign Employment Bureau of Sri Lanka (SLBFE) has announced dates for the 2023 Skill tests for Japan Specified Skilled Jobs (SSW).

Accordingly, skill tests will be held in August and September 2023, and include basic language tests, nursing care workers, the food service industry, and agriculture.

Applicants are requested to register through prometric website: http://ac.prometric-jp.com/testlist/ssw/index.html 

Colombo (LNW): The local poultry producers have agreed to slash the price of chicken, the Agriculture Ministry announced.

Accordingly, the price of chicken will be slashed by Rs. 100 per kilogram.

Colombo (LNW): Veteran Journalist, Actor and Dubbing Artist Lal Sarath Kumara has passed away aged 69.

Kumara was well known for dubbing Julius Caesar in Sinhala in the hit cartoon classic Astreix and Obelix, which aired on Sirasa TV as ‘Soora Pappa.’

• Discharge of cargo begins.

• Local agents Colombo Logistics Group owned by Mr Eric Ambalangodage.

• 12 Fuel stations to start immediately and go upto 150 as planned.

Colombo (LNW): Sinopec has commenced discharging their first cargo from Mt. SI CHOU ZHI LU, petrol and Diesel 4950MT. The second cargo will be discharged tomorrow according to news.

Reliable sources state that Colombo Logistics owned by veteran businessman Mr Eric Ambalangodage is the local agent and logistics partner of Sinopec.

The fuel station dealers will sign the agreements with sinopec shortly after which they will operate 150 stations islandwide as planned; However initially they will operate 12 stations according to reliable sources.

Industry sources further state that this is a big victory for the country as the consumer is expected to largely benefit from the creation of competition amongst the many operators. LIOC is already an operator in the country for many years and have helped create that competition.

Looking back at history, in 1958 the then prime minister of Sri Lanka
Mr Bandaranayaka nationalised the companies that were operating in the country overnight and formed Ceylon petroleum corporation (CPC). The companies that were nationalised were Mobil , shell , standard oil , caltex , Castrol and Esso. It is said that Singapore’s then prime minister Mr Lee Kuan Yew, welcomed these operators with open arms. Now they operate in singapore with full fledged refineries supplying to the region and all of the ASEAN countries.

While reminiscing on another missed opportunity ,one can only imagine had these companies been present in Sri Lanka, how that competition would have assisted the country. The Sri Lankan consumer would have benefited by a far better service and price. What is certain is, had these companies been there last year, we would not have had a fuel crisis .

Let us learn from history and give credit where credit is due.

The Central Bank of Sri Lanka published its inaugural Monetary Policy Report (MPR) yesterday (31).

The publication of the Monetary Policy Report marks an important step towards improving the transparency of monetary policy and is expected to promote engagement with all stakeholders of the economy through the  dissemination of information that was considered by the Monetary Board of the Central Bank of Sri Lanka in the formulation of monetary policy decisions.

The MPR presents the Central Bank’s assessment of the future trajectory of inflation and other key macroeconomic variables based on the analysis of the current macroeconomic developments on the domestic and global fronts, and their outlook. The MPR also aims to provide an assessment of the balance of risks to the projections on inflation and economic growth considering the ongoing and expected developments. Such assessment would help provide greater clarity to all stakeholders on the thinking of the Monetary Board when arriving at monetary policy decisions.

The Central Bank will publish the MPR in January and July each year in line with the major monetary policy review cycles that update medium term projections. In doing so, the Central Bank would provide data-driven and forward-looking information to all stakeholders in a timely manner. This would enhance the transparency and accountability of the monetary policy making of the Central Bank, while assisting in the anchoring of inflation expectations of the general public.

The MPR will complement the existing communication on the monetary policy process of the Central Bank, including the Monetary Policy Review press release, press conference proceedings, and other communiqués featured on the official website and social media of the Central Bank.

By: Isuru Parakrama

Colombo (LNW): The comprehensive renovation of the Superior Court complex in Hulftsdorp in Colombo under the financial and technical assistance of the Chinese government commenced yesterday (31) afternoon, under the patronage of Chief Justice Jayantha Jayasuriya, Justice Minister Wijeyadasa Rajapaksa, and Chinese Ambassador to Sri Lanka Qi Zhenhong.

The project is being undertaken at a cost of US $ 33.6 million, and is expected to be completed in 32 months under two phases. The first phase expects to renovate the section where the Court of Appeal is located and under the second phase, the section where the Supreme Court is located.

The renovation is scheduled to be completed by October 17, 2025.

The Chinese government assisted Sri Lanka in establishing the Supreme Court complex in 1988, in a move to further strengthen the diplomatic ties between the two nations, and subsequent renovations were followed up in 2012 and 2016. On December 20, 2021, an agreement was signed between China’s Ministry of Commerce, Sri Lanka’s Ministry of Justice, and the China International Economic Cooperation Agency in relation to these refurbishments, but the process was delayed due to a number of reasons, including the Covid pandemic and the economic crisis in the country.

Colombo (LNW): A passenger bus carrying at least 100 passengers and travelling from Colombo to Nuwara Eliya was skidded off the road and fell down a precipice in Watawala area on the Colombo – Hatton main road early this (01) morning, injuring at least 18 people.

The accident took place at around 4.30 am near the Watawala Sinhala Vidyalaya.

The injured passengers were admitted to the Watawala Divisional Hospital, and those who were severely injured were transferred to the Nawalapitiya District Hospital, according reports.

Their condition is not critical, a spokesperson for the Watawala Divisional Hospital said.