Sri Lanka, racked by civil unrest and economic disruptions for much of the year, has resumed free-trade agreement talks with China over the past two months amid new social stability within the island nation.
These talks have been going on not at a high level, but at an official level,” official sources said, adding that the government authorities are in a hurry because they would like to see more goods get access to the Chinese market and get the Chinese consent for debt restructuring.
President Ranil Wickremesinghe says he is hopeful that negotiations on the Sri Lanka-China Free Trade Agreement would recommence in near future to further boost the economic ties between the two nations.
He made this remark virtually addressing the opening ceremony of the 5th China International Import Expo (CIIE), the world’s first and biggest import-themed expo yesterday evening (Nov. 04).
Speaking further, President Wickremesinghe remarked that the CIIE has provided a new and innovative stage for developing countries to enter the Chinese market. “I remember it was during the first forum of the BRI (Belt and Road Initiative) back in 2017 that the CIIE was first unveiled.”
Since then, the CIIE has been both an important step in trade liberalization as well as a vital tool in strengthening economic corporation around the world, President Wickremesinghe pointed out.
Noting that Sri Lanka has been participating in the CIIE since its inception, President Wickremesinghe said, expressed gratitude for allowing Sri Lankan businesses to benefit greatly through the participation, and providing the opportunity for Sri Lankan industries to establish a foothold in the Chinese market”
Meanwhile, Chinese President Xi Jinping and other state leaders also delivered virtual addresses at this event.
President Xi said China would work with all countries and parties to share the opportunities in its vast market. “We will step up efforts to cultivate a robust domestic market, upgrade trade in goods, develop new mechanisms for trade in services, and import more quality products.”
He also assured to make efforts to establish pilot zones for Silk Road e-commerce cooperation and build national demonstration zones for innovative development of trade in services, in order to encourage innovation in trade and promote high-quality Belt and Road cooperation
Government expedites negotiations on China –Sri Lanka FTA
Sri Lanka strives to convince creditors for debt restructuring
Sri Lanka’s economic crisis is deepening with unsustainable debt of US$ 35 billion and a severe balance of payment crisis on top of lingering scars of the COVID-19 pandemic and public unrest owing to unbearable cost of living, Finance Ministry data showed.
The Ministry is currently engaged in creditors of the country to get their financing assurance for debt restructuring by conducting a virtual meeting on Thursday 03 success fully but the IMF bailout loan package of US$2.9 billion is still hanging on the balance.
Although the government authorities are determined to fulfill their obligations and commitments made to IMF as soon as possible the IMF executive Board’ consent for the bailout loan package is likely to be dragged on due to delay of China and India to endorse the arrangement, official source said.
Debt restructuring and the implementation of a deep reform program are critical for Sri Lanka’s economic stabilization, says the World Bank in its twice-a-year update, underscoring the need for Sri Lanka to build resilience.
The latest sovereign debt defaulted nation in the world owes $35 billion in total which includes bilateral, multilateral, and commercial loans as of June 30, this year, the official data showed.
The $84.5 billion economy, which is now in a deep economic crisis, has to repay outstanding debt of $10.9 billion via bilateral loans, $9.3 billion via multilateral, and $14.8 billion through commercial loans, the data released by the country’s treasury showed.
President Ranil Wickremesinghe’s government has been struggling for accurate data on foreign debts because some of the sovereign guaranteed debts have been concealed in state-owned enterprises’ accounts by past governments to underestimate the total foreign debt, government officials said.
Sri Lanka’s outstanding debt to China, its top lender since the end of a 26-year civil war, is nearly $7 billion or nearly 20 percent of the total outstanding foreign debt. China accounts for 43 percent of the total bilateral loans, the data showed.
China was earlier blamed for dragging Sri Lanka into a debt trap because of higher commercial loans it has given to the Indian Ocean Island without assessing project viability and return on investment. China has rejected such allegations.
Some of the Chinese loans were given Sri Lanka to help the country which ran into currency crises under ‘flexible inflation targeting’ with output gap targeting, probably the deadliest dual anchor conflicting monetary regime ever peddled to third world nations, and lost the ability to repay foreign loans or make trade payments.
Sri Lanka also borrowed heavily through sovereign bonds during serial currency crises and also deliberately through an ‘active liability management law’ instead of maintaining monetary stability and repaying debt by maintaining an appropriate domestic interest rate.
In 2022 India similarly gave loans instead of forcing economists in the country to raise rates, which the IMF has done.
PHOTO CREDITS; republic world
Heavy showers above 100mm expected at some places: Met Dept
Cloudy sky is expected over most parts of the island and Showers or thundershowers will occur at times, and heavy showers above 100mm can be expected at some places in Central, Sabaragamuwa and Uva provinces and in Ampara, Kurunegala, Gampaha and Hambantota district, warned the Department of Meteorology in a statement today (05).
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
| Condition of Rain: |
| Showers or thundershowers will occur at times in the sea areas around the island. |
| Winds: |
| Winds will be north-easterly or variable in direction. Wind speed will be (20-30) kmph. Wind speed may increase up to 40 kmph at timesin the sea areas off the coast extending from Galle to Pottuvil via Hambanthota. |
| State of Sea: |
| The sea areas off the coast extending from Galle to Pottuvil via Hambantota will be fairly rough. The other sea areas around the island will be moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers. |
MIAP
CoPE, CoPA to convene next week
A number of committees including the Committee on Public Enterprises (CoPE), Committee on Public Accounts (CoPA) are scheduled to meet next week.
Accordingly, Lanka Coal Company (Pvt) Ltd has been summoned before the CoPE on the 9th.
Furthermore, the CoPA is scheduled to meet on the 8th, and is scheduled to look into the special audit report on performance in the process of producing vegetable seeds locally. Also, the respective departments have been summoned before the CoPA on the 11th for the purpose of the evaluation of the performance of clinical waste management.
Meanwhile, several Ministerial Consultative Committees are scheduled to meet next week. Accordingly, the Ministerial Consultative Committee on Justice, the Ministerial Consultative Committee on Education and the Ministerial Consultative Committee on Public Administration, Home Affairs, Provincial Councils and Local Government are scheduled to meet on the 8th.
Furthermore, the Ministerial Consultative Committees on Women, Children Affairs and Social Empowerment and the Ministerial Consultative Committee on Foreign Affairs are scheduled to meet on November 10th .
The Parliamentary Caucus for Children and the Committee on Ethics and Privileges are scheduled to meet on the 8th.
Opposition Leader donates school bus to Walisinghe Harischandra Vidyalaya as part of ‘Sakwala’ Initiative
A country’s school system should be improved in order to build education as it would be the basis to the development and social progress of a country, said Leader of the Opposition Sajith Premadasa, addressing the occasion of donating a school bus to Walisinghe Harischandra Vidyalaya in Anuradhapura, the 40th donation of its kind, as part of the ‘Sakwala’ Initiative undertaken by the Samagi Jana Balawegaya (SJB).
The Opposition Leader noted that human resources should be strengthened by equipping schools with resources compatible with new technology, reminding that the SJB, without any governing power, proved how work should be done via the conduction of ‘Sakwala’ and ‘Husma’, which he described as initiatives that rendered a great deal of service to the country.
MIAP
President to appoint 08-Member Committee to negotiate with China and India on debt restructuring
President Ranil Wickremesinghe has decided to appoint an 08-member Committee to negotiate with China and India in the process restructuring Sri Lankan debt in compliance with the instructions of the International Monetary Fund (IMF) and the agents of the World Bank (WB), official sources confirmed.
Accordingly, envoys from the IMF and the WB have emphasised the necessity to expedite the debt restructuring process to President’s Chief of Staff Sagala Ratnayake, during a recently held meeting. It is in this backdrop has a new Committee been appointed on the instructions of the President.
The Committee comprises of Foreign Minister Ali Sabry, State Minister of Finance Shehan Semasinghe, President’s Chief of Staff Sagala Ratnayake, President’s Secretary Saman Ekanayake, President’s Advisor Dr. R.H.S. Samaratunga, Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe, Treasury Secretary Mahinda Siriwardena and former CBSL Governor Dr. Indrajith Coomaraswamy, and is expected to intervene on the negotiations with China and India to uplift the process of debt restructuring to a point of progress.
MIAP
Bus accident kills 03. 17 injured
Three people were killed and 17 were injured during a bus accident near the Vavuniya – Nochchimotae Raod in A9 Road this (05) morning, Police said.
The bus was tripped and overturned as the driver was unable to control its speed, hence the accident, according to Police.
MIAP
Police officer accused of shooting school student further remanded
The Sub Police Inspector arrested in the allegation of shooting a 14-year old school student in Matara – Thihagoda on October 28 has further been remanded. This was when the suspect was produced before the Matara Magistrate Court yesterday (04).
Matara Chief Magistrate Isiru Nettikumara ordered that the Police Officer be remanded till November 18.
The shooting led to severe injuries on the head of the victim.
MIAP
National Committee on Delimitation of Local Government Divisions appointed
A National Committee on the Delimitation of Local Government Divisions has been appointed under the chairmanship of former Chairman of the Election Commission Mahinda Deshapriya.
MIAP
Power cuts to be curbed on weekend
The three-hour power cut planned for today (05), tomorrow (06) and the day after (07) will be slashed to one hour, revealed the Public Utilities Commission of Sri Lanka (PUCSL).
However, a two-hour power cut will be proceeded on November 08, it added.
MIAP