Speaker Mahinda Yapa Abeywardene has issued a special Gazette notification, summoning the Parliament to assemble at 9.30 a.m. on Saturday, July 1st. The notification comes in light of the impending debt restructuring proposal, scheduled to be presented in the Parliament for adoption this week, according to political sources.
In an effort to ensure the presence of ruling party MPs, an earlier notice was circulated on Sunday (25) instructing them to remain in Colombo and cancel all other engagements, including overseas travel. This strategic move highlights the significance attached to the debt restructuring plan.
Meanwhile, President Ranil Wickremesinghe has outlined a comprehensive timetable for the proposal. He stated that the debt restructuring program will be submitted to the Cabinet on Wednesday, followed by presentations in the parliament and before the Committee on Public Finance (COPF) on Friday, June 30th.
During an interview with FRANCE 24 at the Summit for a New Global Financing Pact in Paris, President Wickremesinghe emphasized that the program will undergo parliamentary debate on Sunday and ultimately gain approval from the parliament.
The proposed debt restructuring initiative holds great importance for the nation’s financial stability, and its progress through the parliamentary process marks a crucial step toward addressing the economic challenges faced by the country.
Australia Sri Lanka Parliamentary Friendship Group was relaunched in Canberra on 19June 2023 at the Sri Lanka High Commission. This group which has been in existence earlier and had been dormant for the last 3-4 years was relaunched under the Chair of Member of Federal Parliament, Sri Lanka born Cassandra Fernando of the Labour Party and Vice Chair Senator James McGrath of the Liberal Party.
The important feature of the event was the attendance of Hon. Andrew Giles, Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs of Australia who spoke of Australia’s multicultural population and the Australian Government policy to address the needs of the expatriate communities to help especially new comers to integrate into the Australian society. In that context he stated that the Friendship Group could act as a catalyst to link the two countries and that as the Minister for Multicultural Affairs he is happy to support such initiatives.
The High Commissioner while welcoming the Minister and the Members of Parliament present at the event and also those who could not attend the function due to Parliament Proceedings, stated that the High Commission is keen to work closely with the federal Members of Parliament in order to strengthen ties between Sri Lanka and Australia including with the Sri Lanka-Australia Parliamentary Friendship Group already set up in the Sri Lanka Parliament and explore areas of cooperation for the benefit of the two countries. High Commissioner added that she is happy and proud to have two ladies with Sri Lankan connections for the first time in the Australia Federal Parliament, Cassandra Fernando and Dr. Michelle Ananda-Rajah of Sri Lankan decent.
In her address, the Chair, Cassandra Fernando referred to her close affinity to Sri Lanka and her desire to see close cooperation between her country of birth and Australia. She spoke of the need to create a greater understanding between the two countries and to promote bilateral relations. The Vice Chair, Senator McGrath of the Liberal Party in his remarks added that his party would also support any initiatives taken by the Friendship Group.
As the Honorary Consul for Sri Lanka in Queensland Mr. Anton Swan is completing his tenure of office having served over 30 years as Honorary Consul, the occasion provided an opportunity to bid farewell to him. The High Commissioner spoke of some of the highlights of his 50 years in Australia and the Medal of the Order of Australia (OAM) he has received from the Australian Government and the services he has rendered to Sri Lanka for over 30 years.
In appreciation and recognition of his services to Sri Lanka in an honorary capacity, Mr. Swan was presented with a plaque. Mr. Swan too spoke on his work and stated that he was happy to have served his motherland, Sri Lanka and the Sri Lankan Community.
During the event, a video clip sent by the Sri Lanka Tourism Promotion Bureau (SLTPB) on Sri Lanka and especially on the tourist attractions was shown to the audience.
A Ceylon Tea stall was also set up to promote ‘Ceylon Green Tea’ given the increasing demand of Australians for sustainable, nutrient rich and a healthy drink. The Sri Lanka Tea Board sponsored ‘Ceylon Green Tea Stall, while ‘Dilmah’, a prominent Ceylon Tea exporter in the Australian marked provided gift tea (flavoured green tea) to the invitees. Ceylon tea promotion videos depicting ‘sustainable-grown’ variety of Ceylon tea for the world market were screened at the reception. The event was held alongside a live demonstration on ‘Ceylon Green Tea Tasting Session’ by the staff of the Mission.
A Sumptuous Sri Lankan Cuisine including hoppers catered by Sri Lankan chefs in Canberra was enjoyed by the participants.
Foreign Minister Ali Sabry will lead a delegation to participate at the World Economic Forum to be held in Tianjin, China from 27 to 29 June 2023.
The Forum themed ‘Entrepreneurship: The Driving Force of the Global Economy’, will provide a platform for dialogue among political and business leaders from over 90 countries across the globe, which is expected to advance regional and global collaboration on economic challenges. Minister Sabry is scheduled to participate at the Roundtable titled ‘Preventing a Lost Decade’ and the Stakeholder Dialogue on ‘How to Power Tomorrow’s Economy’.
During the visit, the Foreign Minister will hold bilateral discussions with Chinese Foreign Minister Qin Gang and other high level dignitaries. Minister Ali Sabry will also interact with the Sri Lankan community living in Beijing as well as the Sri Lankan students in Tianjin University.
The Government of Sri Lanka has appointed Lapo Baroncelli as the Honorary Consul of Sri Lanka to Florence, Italy (with consular jurisdiction over the Tuscany region).
Ambassador Jagath Wellawatte handed over the Commission of Appointment duly signed by the Minister of Foreign Affairs of Sri Lanka to Lapo Baroncelli on 08 June 2023 at the Embassy.
There are around 8000 Sri Lankans living in the Tuscany region and the Honorary Consul will provide consular assistance and services to them.
The Honorary Consul will also assist and support the Sri Lankan Embassy in Rome to promote economic, business, tourism and cultural relations in the Tuscany region of Italy.
Opposition Parties Stand United for Careful Domestic Debt Restructuring
In a press conference held at the Leader of the Opposition’s office, MP Harsha de Silva, expressed his thoughts and suggestions regarding the upcoming domestic debt-restructuring plan in Sri Lanka. He divulged that opposition parties, while cautious about the potential consequences, would discuss the need for careful domestic debt optimization if deemed absolutely necessary. Tomorrow, the opposition parties are scheduled to meet and discuss their stance on this crucial issue, which has garnered significant attention nationwide. The government plan is set to be presented to the Cabinet on the 28th and will subsequently undergo deliberation in the Committee on Public Finance over the following two days. Pending agreement at the Party Leaders’ meetings, a special parliamentary session is planned for the weekend of July 1st and 2nd to debate the plan.
Cautionary Approach Highlighted from the Start
MP Harsha highlighted the importance of a cautious approach toward domestic debt optimization. Their blueprint, published last year and revised earlier this year, stressed the need to guarantee the stability of Sri Lanka’s financial sector and prevent any unfair treatment of depositors, particularly the EPF and ETF. The Opposition firmly opposes any haircut on domestic debt and warned against it. He referred to a haircut as a ‘Do Not Cross’ line.
Strong Opposition to Damaging Measures, Willingness to Act for the Nation
He said while his party was totally opposed to any plans that include a haircut on domestic debt, they remain committed to protecting the interests of the nation. They emphasize the importance of fair treatment for pension funds and depositors without causing further harm to the economy. Their primary focus is on safeguarding the country’s interests and ensuring that any necessary measures are implemented in a responsible and cautious manner.
Urgent Need for Economic Growth
Sri Lanka’s economy is contracting daily, regressing to the GDP per capita levels in 2013. To achieve the status of a developed country, as outlined by the President, Sri Lanka needs to sustain a minimum growth rate of 6.5% annually from 2027 to 2048. Merely maintaining the current pace or IMF projected 3% by 2027 will not be sufficient to propel the nation forward. Additionally, the country faces challenges such as reduced demand in global markets and the displacement of low-skilled labor due to technological advancements and automation.
The Promise of Domestic Debt Optimization
The primary advantage of pursuing a domestic debt optimization program lies in the reduction of substantially increased interest rates, allowing the economy to regain stability and promote growth. MP Harsha emphasized that the focus should be on optimizing domestic debt rather than restructuring it entirely. The government has indicated that only treasury bonds will be subject to optimization, not treasury bills. Thus, as treasury bonds carry higher risk, they demand a risk premium. Lowering the risk through the debt optimization program will subsequently lead to a decrease in interest rates, benefiting small and medium-sized enterprises (SMEs) and other businesses, revitalizing the economy. This urgency underscores the importance of implementing the domestic debt optimization plan as soon as possible.
Commitment to Protecting People and Creditors
MP Harsha de Silva and the opposition parties are prepared to draft laws and regulations in Parliament to safeguard the interests of the people and creditors. This commitment aims to ensure that any domestic debt restructuring measures are conducted in a manner that prioritizes the well-being of all stakeholders involved. They emphasize the need for transparency and accountability throughout the process.
Reviving the MSME Sector
One of the potential positive outcomes of an effective domestic debt optimization program would be the revival of the Micro, Small, and Medium Enterprises (MSME) sector. MP Harsha highlighted the importance of providing support and opportunities for these businesses, which are currently facing significant challenges. A well-executed debt optimization program could help uplift the MSME sector from its current state and foster growth and economic recovery.
As Sri Lanka grapples with the pressing issue of domestic debt, MP Harsha and the opposition parties stress the importance of careful consideration and a cautious approach. They stand united in their determination to protect the interests of the nation while exploring viable strategies for domestic debt optimization. By striking the right balance between economic stability, fair treatment of depositors, and sustainable growth, Sri Lanka can overcome its challenges and pave the way for a brighter future.
The Ceylon Electricity Board (CEB) is thrilled to announce the upcoming launch of the next phase of our e-Billing system, effective from the 01st of July, 2023.
During this phase, customers residing in the Dehiwala, Kelaniya, and Sri Jayewardenepura areas will exclusively receive their electricity bills in a digital format, either through SMS or email. This marks the discontinuation of the conventional practice of issuing printed paper bills.
We also encourage all our customers nationwide to promptly register for this convenient service, as the issuance of printed paper bills will gradually be suspended in the coming months.
To register via SMS, please type REG<space>followed by your A/C Number and send it to 1987.
To register online, please visit http://ebill.ceb.lk and follow the instructions.
We kindly request your attention and cooperation to ensure the successful implementation of the e-Billing system. This initiative is expected to save approximately 100 million sheets of paper annually. In light of this significant environmental impact, we invite all our customers to join us in embracing this digital transformation and take advantage of the CEB’s digital services ahead of the mandatory rollout.
The Embassy of Sri Lanka in the United States of America, in collaboration with the “Wharton Club of DC, hosted a vibrant evening reception on 23 June 2023 at the Embassy premises in Washington D.C., promoting trade and investment opportunities in Sri Lanka among large number of entrepreneurs and senior professionals of the Club.
Ambassador Mahinda Samarasinghe, in his speech, highlighted that Sri Lanka was the first ever country in the South Asian region that adopted market economic policies liberalizing the economy way back in 1977. He emphasized that even though the country faced severe economic challenges triggered by foreign exchange shortage in the last year, now the economy of the country is back on track from all fronts and invited attendees to make use of vast array of trade and investment opportunities available in the country.
Chairman of DC Innovation Summit as well as President of “Wharton Club of DC” Alan Schlaifer, in his address, thanked the Ambassador and the staff for organizing such a reception creating important platform for the members of the Club to engage with the Embassy in promoting mutual interests.
Minister (Commercial), Charitha Yattogoda of the Mission ran a detailed presentation to the audience briefing them about promotional opportunities of exportable Sri Lankan products in the US market while highlighting investment opportunities available in the country from the US perspective covering key potential areas such as manufacturing, ICT & It enabled services, logistics, tourism & leisure, renewable energy and in the Port City Colombo inviting the attendee to consider Sri Lanka as their next trade and investment destination.
Additionally, the investment related promotional materials received from the Board of Investment of Sri Lanka and Port City Colombo (Pvt) Ltd, were distributed among the participants in addition to include key areas therein in the detailed presentation.
On this occasion, the Embassy took the opportunity to boost tourism in Sri Lanka by exhibiting vivid photographic sceneries and screening tourist-oriented videos promoting diverse tourist attractions in the country while giving opportunity for the attendees to choose tour packages that suit them to visit Sri Lanka through a Washington DC based tour operating company of “VoyagX” that joined the event.
A cultural recital showcased the talents of “Serendib Dance Troupe” in Washington D.C captivating the attendees. Dances of both up-country and low-country styles that depicted Sri Lanka’s rich traditional dance heritage were performed. The talents of the troupe of “Ceylon Bera” enthralled the crowd with the rhythms of Sri Lanka accompanied by instrumental music. A Bharatanatyam dance depicting the culture of the Tamil community was performed by the “Natraj School” showcasing vibrant diversity of Sri Lankan culture.
Attendees were treated to a sumptuous authentic Sri Lankan dinner buffet with flavours of Ceylon spices prepared by a Sri Lankan chef with a live station serving “Hoppers” and “Kottu Roti”
The Embassy with the objective of promoting Ceylon tea made arrangements to serve all the visitors a freshly brewed cup of hot & iced Ceylon tea sponsored by “Basilur” and “Shan Teas” (Sri Lanka) and “QTrade Teas & Herbs”(California, USA) in a specially set up tea corner that demonstrated different types of Tea.
The event concluded with a raffle draw offering prizes of complimentary hotel packages for stays in reputed hotels in Sri Lanka from Siddhalepha Ayurvedha Health Resort in Wadduwa, Theme Resorts & Spas, Cinnamon Hotels & Resorts, Tree of Life Nature Resort, Kandy and Theva Residency Boutique Hotel Kandy.
The event was held parallel to the 9th Annual Wharton DC Innovation Summit hosted by “Wharton Club of DC” which is a business-focused membership organization that provides opportunities for networking and lifelong learning to entrepreneurs and business leaders as well as professionals from elite/top universities and business schools, on 22 June 2023 in Washington DC.
PMD: State Finance Minister Shehan Semasinghe advised all applicants whose names were not included in the list of ‘Aswesuma’ beneficiaries to file appeals before July 10; following the close of the appeal process, a final list of deserving applicants will be compiled.
Minister of State for Finance Mr. Shehan Semasinghe mentioned this while joining the press conference held at the Presidential Media Center (PMC) today (27) on the ‘Aswesuma’ social welfare benefits program.
The State Minister pointed out that this problematic situation has arisen as certain parties attempt to satisfy their political needs by giving the ‘Aswasuma’ program, which was created to aid those in need of economic stability, a political façade. The list of names that has been made public is by no means the final list, the State Minister emphasized.
State Finance Minister Shehan Semasinghe further said;
As a nation, we had to endure a massive economic depression in the recent past. As a main part of recovering the country from that situation, the ‘Aswesuma’ social welfare benefit program was initiated with the aim of providing the necessary contribution to the people who need economic stability, while protecting the poor and vulnerable groups of the population.
In general, there has always been a tendency in our country to rely on those benefits rather than empowering those who sign up for social welfare programs and boosting the economy. However, it must be noted that this program is one that goes above and beyond that.
The relevant candidates were selected in accordance with the Welfare Benefits Act No. 24 of 2001. The selection of these deserving candidates was done under six sections and related indicators. According to this, a list of the eligible beneficiaries was drafted. However, it should be noted that it is not the final list.
I ask any individual or family who believes they should be eligible for this benefit but whose name is not included in the list that has been published so far, to submit an appeal to the appropriate Divisional Secretariat Offices within the allotted time frame. Additionally, enquiries can be made if it contains the name of an ineligible person.
We request the people not to panic as a result of yielding to political instigation or external influences and not to join the agitation actions to fulfill the interests of certain political groups. Also, I request everyone to work accordingly with the system implemented by the Government. However, we expect to prepare the final list of social welfare benefits candidates after the appeal period ends. President Ranil Wickremesinghe has advised us to prevent any injustice towards the ‘Aswesuma’ beneficiaries.
Among these, the list of beneficiaries receiving differently-abled, elderly, and kidney support allowances is also expected to be released in the near future.
PMD: President Ranil Wickremesinghe assured that the restructuring of domestic debt will have no impact on the membership balance of any public funds, including the Employees’ Provident Fund (EPF). He emphasized that the rate of return for superannuation funds will not be affected in any way.
Furthermore, the President stated that the restructuring of domestic debt will not pose any threat to the stability of the country’s banking system, whether it be public or private banks. He specifically mentioned that the deposits of more than 50 million bank depositors will remain unaffected, and there will be no changes to the current interest rates paid on bank deposits.
President Ranil Wickremesinghe also announced that proposals for restructuring both foreign and domestic debt will be presented to the Cabinet tomorrow (28).
The President made these statements while inaugurating the Gampaha District Secretariat Administrative Complex, ‘Laksiyane Mandiraya,’ which has been constructed with the aim of providing efficient and regular government services to the people of the Gampaha district. The complex, with an expenditure of nearly Rs. 4 billion, stands at seven stories tall.
It was highlighted that Sri Lanka’s total public debt, comprising both domestic and foreign debt, amounted to $83,700 million by the end of 2022, representing 128.3% of the Gross Domestic Product (GDP). Of this amount, the foreign debt totalled $41,500 million, accounting for 63.6% of the GDP. The President also noted that the domestic debt at that time stood at $42,100 million, which constituted 64.6% of the GDP.
The President highlighted the urgency of restructuring the country’s debt, stating that without such measures, the public debt would exceed 100% of the GDP by 2035. He emphasized that foreign creditors have already expressed their agreement to participate in the debt restructuring process. To ensure debt sustainability in Sri Lanka, the President emphasized the need for restructuring both external and domestic debt. Acknowledging the significant burden carried by foreign creditors, he mentioned that the country is set to receive 17 billion US dollars from them in the next five years. The President emphasized the importance of local creditors also contributing to this effort.
The proposed debt restructuring plan has been designed with the primary objective of safeguarding the public’s bank deposits. The President underlined the responsibility of protecting the depositors of all banks regulated by the Central Bank. He assured that the proposed domestic debt restructuring method poses no harm to bank depositors and will not lead to a collapse of the banking system. On the contrary, it will pave the way for a restructuring process that can rebuild the economy.
The President further stated that the country’s economic recovery, reduction in interest rates, the government’s ability to provide subsidies easily, and the reduction of both domestic and foreign debt burden in the next decade will yield positive results benefiting the people of the country.
During his official visit to France, the President engaged in discussions with Commonwealth Secretary General Patricia Scotland, International Monetary Fund Managing Director Kristalina Georgieva, Netherlands Deputy Prime Minister and Finance Minister Sigrid Kaag, American Treasury Secretary Janet Yellen, and Japanese Foreign Minister Yoshimasa Hayashi regarding foreign debt restructuring. The President highlighted the progress being made in Sri Lanka’s financial sector during these discussions. He expressed satisfaction that they were all eager to assist in reversing the crisis in Sri Lanka and affirmed their commitment to contribute significantly to the country’s economic recovery.
The President also said that during a recent telephone conversation with the Indian Finance Minister, Mrs. Nirmala Sitharaman, she had expressed her country’s intention to positively contribute to Sri Lanka’s debt restructuring and economic stability. The President said that he would hold detailed discussions on the matter during his upcoming visit to India.
The President also mentioned that Foreign Minister Ali Sabri, who is currently on an official visit to China, has agreed to enhance bilateral relations and strengthen economic ties between the two countries. Minister Sabri held fruitful discussions with China’s Foreign Minister, Mr. Qin Gang, sharing their views on deepening cooperation.
President Ranil Wickremesinghe further revealed that, during a meeting with the Chinese Finance Minister, Liu Kun, in Beijing, he was briefed on the economic stabilization and progress plan of the country. Minister Ali Sabri expressed gratitude for China’s special contribution during the previous crisis.
During the visit, the President held discussions with the Chairman of the Chinese Exim Bank, Wu Fulin, and other Chinese officials appointed for the purpose of restructuring Sri Lanka’s foreign debt. They assured their commitment to contribute to the debt restructuring process in the best possible manner.
The event was attended by Prime Minister Dinesh Gunawardena, Ministers Prasanna Ranatunga, Nalin Fernando, State Ministers Shehan Semasinghe, Prasanna Ranaweera, Sisira Jayakodi, Lasantha Alagiyawanna, Janaka Wakkambura, Gampaha District Development Committee Chairman and Members of Parliament Sahan Pradeep, Nimal Lanza, Sudarshanee Fernandopulle, Milan Jayathilaka, President’s Senior Adviser on Climate Change Ruwan Wijewardena, Western Province Governor Roshan Gunathilaka, and other dignitaries.
Colombo (LNW): Piyath Nikeshala, social media activist and a prominent figure of the ‘Aragalaya’ people’s protest last year, who was arrested by the Criminal Investigation Department (CID) yesterday (26), has been granted bail.
This was when Nikeshala was produced before the Fort Magistrate Court today (27).
Nikeshala was arrested by the CID on the charge of live-streaming the incident of a group of people presumed to be protesters setting fire on President Ranil Wickremesinghe’s private residence in Colombo in July last year.
The Magistrate Court also imposed an overseas travel ban on Nikeshala.
