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Update: USAID assures new assistance of US$60 million to Sri Lanka!

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President Ranil Wickremesinghe today assured the Administrator of the United States Agency for International Development (USAID), Samantha Power, that he will go through with the proposed electoral reforms. 

Ms. Power assured assistance of $60 million in new assistance. “But compared to the challenges you face, that is very, very small and very modest.

She said But we want to use our convening power to be catalytic as best we can, at the international financial institutions, with the private sector, with other countries that themselves are looking anew at Sri Lanka and thinking where to go.”

The  government is also bringing in the new anti-terrorist legislation calling the Parliament to say once and for all that they must agree on electoral reform with in six months.  

The political parties can’t be putting this off forever. They have to bite the bullet at some stage. So, if they are not willing I will go for a referendum on the major reforms,” he said adding that there will be 14,000 people’s councils in the 14,000 basic units.

He also said that discussions have been held with Tamils regarding detentions under the Prevention of Terrorism Act (PTA).

President Ranil Wickremesinghe also said that he is focusing on an export oriented, competitive market economy for Sri Lanka as the country has the opportunity of supplying South Asia, Southeast and east Asia.

“President Wickremesinghe said that the wheels have been set in motion to make Sri Lanka a prosperous nation by 2048 as the country looks to celebrate the centenary of its independence.

He also noted that as far as democracy is concerned, the 22nd Amendment is before Parliament.

“The ruling party is waiting for Parliament to pass it. In administrations, it has brought out the first Cabinet manual in Sri Lanka.

Hence, that will have to go before the Cabinet and we’ll establish procedures for the whole of the Cabinet. The oversight committees are back again and we’ll be looking forward to support from the USA, he added.

He thanked Ms Power for the $40 million US assistance for the farmers, which will certainly be a big help as the country is about to launch a food security and nutrition initiative.

Meanwhile, Samantha Power highlighted Sri Lanka’s vibrant private sector and said measures should be taken to unleash the potential of the private sector.

“You have such an incredible private sector, such entrepreneurship. But the government, over so many years has largely stood in the way of unlocking that potential instead of fuelling it.

Quoting Former Finance Minister Mangala Samaraweera she said that the late minister as saying that government has no business running business.

And you know what he has done in the telecom sector? If that could be done in other sectors in an expeditious and transparent way, to unlock the potential of your people, it would be incredible, she added.

She said that the political reform agenda and the economic agenda go hand in hand which they have already seen this in the United States in trying to engage the business community to look at Sri Lanka now and to see the opportunities that exist here.

USAID urges China to assist Sri Lanka debt restructuring to tackle economic crisis 

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Visiting USAID Administrator Samantha Power on Sunday urged China, among other creditors, to assist Sri Lanka in restructuring debts to recover from the ongoing economic crisis.

Completing her two-day visit to the island nation that grapples with the worst-ever economic crisis since its independence from British rule in 1948, Power announced that the US was ready to help South Asian island in its debt restructuring process.

“As Sri Lanka seeks to emerge from this economic crisis, the United States, as a creditor and a member of the Paris Club, stands ready to participate in the restructuring of Sri Lanka’s debts,” Power told journalists in Colombo.

“It is imperative that all Sri Lankan creditors, most notably the People’s Republic of China, cooperate in this process openly and on comfortable terms with each other.

“When debt becomes unsustainable as it so clearly has in Sri Lanka, the stake of that

cooperation can mean the difference between life and or death, prosperity or poverty,” Power added.

The United States Agency for International Development (USAID) Administrator, who emphasised that the US is not interested in increasing Sri Lanka’s debt, said that her country “provides grants, as it is interested in the US-Sri Lanka relationship becoming a strictly trade related relationship, and not an aid relationship”.

“We want to use our resources to unlock the potential that we know is there, without strings attached. And we think this is a really important moment in Sri Lanka for that same mindset of standing with our friends, no strings attached, and in the interest of economic independence and economic stability for this country,” Power added.

During her visit, Power announced that $60 million assistance would be given to Sri Lanka – $40 million to help farmers purchase fertiliser and other vital agricultural inputs and another $20 million as emergency humanitarian assistance.

The USAID stated that the complex emergency that has resulted in a severe economic crisis has left nearly 5.7 million Sri Lankan people in urgent need of food, agriculture, livelihood support, protection, and more.

The weekend’s USAID financial support has brought the US government’s assistance to Sri Lanka at nearly $240 million.

With a colossal $51 billion total debt with the challenge to repay around $28 billion by 2028, Sri Lanka suspended repayment of nearly $7 billion in foreign debts due for the year 2022.

On September 1, the International Monetary Fund (IMF) struck a deal to provide $2.9 billion over four year to help salvage the country from its worst economic

crisis but reiterated that much will depend on the cooperation of the country’s existing creditors including China.

During her weekend visit, Power also met President Ranil Wickremesinghe, farmers who were affected by the agricultural crisis and few other stakeholders.

Actor Damitha Abeyratne granted bail!

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Veteran Actress Damitha Abeyratne, a prominent voice of the people’s struggle against the government, who was arrested and remanded last week, has been granted bail.

Abeyratne was produced before the Court today and accordingly, she has been released on two sureties of Rs. 500,000 each.

MIAP

Sri Lanka’s external debt restructure faces obstacles amidst complex issues

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Sri Lanka’s bargaining power will be weakened by the current default and new court case against it. If the New York Federal Court delivers its judgement in favour of Hamilton Reserve, Sri Lanka will have to make the full payment on 25 July. 

If it does so, the other creditors will also ask for the same treatment on the principle of equal treatment. Then, the debt restructuring plan will come to a standstill, economic experts claimed.

These lenders who take the borrowers to courts are called ‘holdout investors’ and they stand outside the negotiating creditors putting a hold on the ongoing restructuring plan. And these litigations may take many years for conclusion, they added.  

The country’s external debt restructure has become  a complex issue as the Government has to get creditors consent for repayment plan amidst severe economic crisis and preemptive debt default, several economic experts warned.    

The International Monetary Fund (IMF) has made debt restructure a prerequisite for the country to seek the approval of the IMF executive board to obtain the Extended Fund Facility (EFF) of US$ 2.9 billion, Peradeniya University economics Prof O.G Dayaratne Banda said.

He added that some of the details in economic reform programme (a realistic macro-economic and fiscal framework) and repayment plan cannot be revealed as it might affect the negotiations with creditors that are still to be commenced under post default situation. 

Basically the economic reform programme will be devised by the Sri Lanka side with the consent of IMF staff mission aiming at addressing the balance of payment and exchange rate stabilisation, he disclosed.

At this juncture it is not possible to divulge market sensitive information such as   debt restructuring parameters, he claimed.

The IMF staff level agreement has been reached on Thursday 01 of this month to support Sri Lanka’s economic policies with a 48-month arrangement under the EFF.

It has also arrived at a consensus on new Fund-supported programme prepared by state monetary and fiscal authorities to restore macroeconomic stability and debt sustainability.

It will be safeguarding financial stability, protecting the vulnerable, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.

The government has already taken preliminary measures towards this end by implementing some of these commitments proposed in the Interim budget 2022.

Based on these developments the IMF staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision, IMF sources revealed.

But due to the present state of preemptive debt default, the government authorities have to submit a plan on debt sustainability to the IMF executive board separately after reaching consensus with creditors on debt restructure.  

The IMF executive board will not endorse the releasing of $ 2.9 billion four year EFF tranches till the assurance of Sri Lankan authorities on debt sustainability with the consent of creditors on their debt restructure.

Without the “assurances” from those creditor countries, the Fund’s money cannot flow, Senior IMF Mission Chief Peter Breuer emphasised at a recent media conference held in Colombo.

According to Finance Ministry statistics endorsed by the IMF, the country’s bilateral debt stock as at end 2021 spear headed by loans taken  from China , India and Japan was $ 9.6 billion while the total  external debt excluding commercial loans and additional payments amounting to around $ 22 billion.

However several economic experts said China India, multilaterals and global asset managers should agree on debt restructuring with sizable cuts on capital or interest or both of their borrowings.

Under restructuring, both the borrower and the lender will agree to a new repayment plan with a waiver of the interest or some part of the principal or a combination of both

Normally according to international stipulation, this maximum hair cut would be around 50 percent and foreign creditors will have to give their consent to write off 50 percent of total external debt of $ 22 billion which is equalled to $ 11 billion or 50 percent waver of total accumulated interest.   

Under restructuring, both the borrower and the lender will agree to a new repayment plan. That should necessarily be repayment of less than the full amount. It can be waiving of the interest or waiving of some part of the principal or a combination of both Central Bank Governor Nandalal Weerasinghe has previously stated Sri Lanka can reach debt sustainability without re-structuring domestic debt.

Boys and girls who are struggling to win over Asia for a country that hears about defeats

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Internationally, Sri Lanka’s most successful team sport is men’s cricket. Sri Lanka has even won the world championship. As a women’s team sport, Sri Lanka receives the highest honor from netball. Sri Lanka has been the champion six times and runner up ten times. These two sports run in two formats. Cricket lives a life of luxury while netball does not have that privilege. It oscillates between being accepted as a sport and being treated as a women’s game because of the highly traditional power struggle within the netball format.

The power is centered not only at who decides to control decisions but often with the issues of who will train, and what places these women’s children should get in the team. Also, often the Ministry and the Development Department need cricket funds in some cases, while netball is dependent on the Ministry’s and the Development Department’s two cents therefore we have seen some netball connections in the Ministry and the Development Department, trying to assert their power within the netball issues.

Irrespective of these formative conditions, the instances that netball has won for Sri Lanka in team games should be accepted with respect as much as in cricket. Based on that respect, Sri Lanka has come to the front as the undisputed queen of Asian netball in the fight to win Asia. Singapore, which is currently thinking of strategies to win the crown while still sitting on the seat of second in command, will enter the battle to break the dominance of the queen on its own land. It should be remembered with respect that those who have guided the team from winning the crown for the last time, representing the world championship, etc., were the strength behind the team entering the final battle yesterday.

Accordingly, the coaches from Thilaka Jinadasa, Somita Alwis to the current Hyacinth Wijesinghe as well as the coaching staff who supported them and are still doing so, are the factors of this strength. Most likely, the tactic that Singapore used in yesterday’s game to control Malaysia’s pace by slowing down the game a bit and exchanging the ball in the field for more time, was launched against Sri Lanka as well. Therefore, Sri Lanka worked to prevent it and immediately get into that rhythm and convert the match into their own rhythm.

The most important thing is that this match was in a favorable position towards Sri Lanka. Also, Sri Lanka has already qualified for the World Cup. Under this condition, the battle to become the coach here will resume in the next World Cup tour. Some former officials do not want to stop winning Asia and allow the country’s female coaches to become World Cup coaches. Therefore, the search for more players who need to strengthen the team immediately at the end of this tournament should be carried out in a separate round, and steps should be taken to maintain it under the coach and training staff of the team that is going to the world championship.

But there are a number of things that need to be taken care of when the team goes out into the world to fight. There, if there is no training advisory council, a staff should be used to constantly identify the areas where the players need to grow, give advice to the coach and work to correct them through her. In such a situation, it should be the responsibility of the current coach to stand up for the country by dealing with the discussion as well as the ideas and discussions, and she should make sure not to use “the country as I want”.

India has won the most Asia Cup cricket matches in history. That’s seven times. Sri Lanka has done the feat the second most times, having won the championship five times. Pakistan have won the tournament only twice so far. This was the second time that the tournament will be run in the 20/20 format, and the first time it was held in 2016, India were the champions. Runners-up Bangladesh had to go out in the first round this time, while champions India were eliminated in the second round by Pakistan and Sri Lanka.

Sri Lanka is at the forefront of the winning mentality. Throughout this tournament, Sri Lanka stands out as the strongest team due to the combination of skills of several players. Its advantage was important for Sri Lanka yesterday as well. But it is certain that they have also studied Sri Lankan batsmen as well as bowlers through the world’s top data analysts. Therefore, as strong as the body is, Sri Lanka, the winner, has been the one who maintained the momentum with discipline and restraint while applying the knowledge sensibly and creatively according to the relevant moment.

Like the current selection committee, under the leadership of Dasun Shanaka, the selection committee who sent a team to Pakistan on a diplomatically important tour and managed to win the championship, should also be thanked here. It became clear that cricket is cricket and not characters. On the same hand, it is also wonderful how players like Bhanuka Rajapaksa are creeping into the hearts of the people like cricket in the country, proving that even a selection committee cannot keep cricket in its shape by attacking certain weaknesses. Also Keith Miller and the current Silverwood are committed to the profession with responsibility and love. Their coaching staff deserves similar credit for this win. South Asian culture’s respect and sensitivity to human connections transcends the profession. So the tributes to Miller and Silverwood’s love are already happening on point.

It has now been confirmed that cricket is a non-individual-centered team sport, which has been the identity of the road since history. History itself has confirmed that even if there are talented special players, those who are not are the main ones but the team spirit wins. With the leadership of Dasun Shanaka, cricket has reached a moment where it is at the top of such a channel. To protect this place that has come with great dedication, only the knowledge of cricket education should be used. At present, South Asian poverty is based on the power of astrological matters, and if it is said that it can be won, it is important to intervene in a sporting way to get it until the last second when the victory is confirmed without making a margin of victory.

Just like a cricket team, netball is a team. But the team is also confident that they will squeeze out victories to the point where they are circled around Tharjini. That mentality is one that pushes down from the administration even from the netball coaches in Sri Lanka. But while she was there, there were times when we couldn’t even conquer Asia. Every second that Tharjani’s handling of the ball fails, it becomes difficult for Sri Lanka to win, and when Tharjani commits a few mistakes, the effect on the entire team is sadly exceeded.

Therefore, in order to determine the path of netball in Sri Lanka after the 2023 World Cup, it was essential to think of strategies to take advantage of the average height expected from a female netball player in Sri Lanka. This should lead to the discovery of relatively new players for the national team, and it is important to maintain an “expecting” pool of players for national netball.

Sometimes a person working in Sri Lanka with hypocrisy may also have the crisis of someone else taking over the status they have acquired through sports. If such a person gets low political protection in Sri Lanka and the ruler of politics can make some advantageous deal out of it, the country is irrelevant. Therefore, the biggest challenge ahead for the crowned boys and girls who have come to reign in this Asia was that the game could have been surrendered at any time for the hypocritical political spirits of the people to run wild. However, it was the wish of the country to see both girls and boys become Asian stars and stars for the love and joy of the people of the country.

The poverty, insecurity, inflation and hunger that have won over the rulers to be a country with the highest rates of malnutrition and, in many cases, the highest in the world and the highest in Asia and South Asia, the people want happiness, today there is an indoor sports ground in Singapore and a cricket ground in the United Arab Emirates. Let’s congratulate the cricketers and netball players who struggled to put a sense of pride in the hearts of the citizens of a state that is unable to put a smile on their lips to find pride, for winning Sri Lanka and giving the countrymen the joy of victory, which is a rare treasure!

Ex President Rajapaksa leaves Facebook remark praising Sri Lanka’s victory at Asia Cup

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Following a two-month-silence, former President Gotabaya Rajapaksa has written on his Social Media congratulating the Sri Lankan Cricket Team and the Netball Team who won the Asia Cup.

His Facebook remark comes in for the first time since he fled the nation upon the July 09 uprising against the government.

MIAP

SL Coal tender awardee backs down triggering ten hour power cuts

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Sri Lanka’s power crisis triggered by fuel and coal shortage amidst dollar scarcity currently easing to some extent with recent crude oil and gas oil supply of UAE based Coral energy is now facing another obstacle with the decision of the coal trader SUEK AG  to back down from the coal tender, informed sources said.

The withdrawal of SUEK AG from the tender will compel the Power and Energy Ministry to  find an immediate option to import coal soon preventing Norochcholai power plant shut down as a result of coal shortage forcing authorities to impose ten hour power cuts.

Sri Lanka should be prepared for an extended power outage for around 10 hours a day in the event of a coal shortage, warned the Ceylon Electricity Board Engineers Union Chairman Anil Ranjith Induwara.

He said that by October 2022 if the CEB doesn’t receive sufficient stock of coal, it will have to cut down on electricity generation.

The withdrawal decision of  tender awardee SUEK AG from coal supply comes following allegations of irregularities in awarding the tender by some opposition politicians.

The Parliamentary Committee on Public Finance (COPF) will conduct an investigation into the allegations against the irregularities in the tender on purchasing coal, its chairperson MP Harsha de Silva said.

In the wake of this sudden decision of the company, senior energy ministry official said that the only option available now is to enter in to coal procurement contract  with another supplier.

Coral Energy DMCC; CMEC; the Switzerland-based Suek AG (on its own); and the Hong Kong-headquartered King Stone Group Trading Company Ltd submitted unsolicited proposals..

Black Sand FZE, was awarded the tender to supply coal through Suek AG which is one of the under the three-year deal guaranteeing  1.25mn MT of coal in the first year (2022-23); 2.25mn MT in the second year, and 1.25mn MT in the third year.

The approved base cost and freight price is US$ 328.22, informed  sources said. However, this is not fixed. It will be adjusted according to the index price at the time of supply. The deal includes zero percent interest and six months of credit.

 With the decission of Suek AG to withdraw from the tender then  the next best offer—Coral Energy, already the main oil supplier—is likely to secure the contract.

Meanwhile, Sri Lanka’s efforts to secure coal for Lakvijaya via Government-to-Government agreements have so far failed, authoritative sources said.

The Parliamentary Committee on Public Finance (COPF) will conduct an investigation into the allegations against the irregularities in the tender on purchasing coal, its chairperson MP Harsha de Silva said.

The probe will be conducted in accordance with a request made by Minister of Power and Energy Kanchana Wijesekera, the lawmaker added.

On Wednesday (Sep 08), he had mentioned in a tweet that he made a written request to conduct an inquiry into the coal term tender, as the false allegations levelled against the awarded tender has created questions on transparency and pricing.

MP Harsha de Silva said that following the discussion with the Speaker of Parliament, another discussion with the Auditor General and the Secretary to the Ministry of Power and Energy was held (Sep 08) to give necessary directives on conducting an immediate audit of the process.

President to call for a referendum?

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In light of adopting a new anti-terrorism law and amending the electoral system, a political agreement will be sought and for that purpose a period of six months have been given to all parties, revealed President Ranil Wickremesinghe, during the meeting with Samantha Power, Head of the United States Agency for International Development (USAID) yesterday (11).

Nevertheless, should the affair not be carried out that way, the opinion of the country should be sought via a referendum valuing democracy, the President noted, pointing out that these matters cannot be dragged in forever under the guise of political parties.

Commenting on the measures taken by the government to assure democracy, the President stated that the 22nd Amendment to the Constitution has been tabled in Parliament and that the first Cabinet Handbook for the administration is to be introduced. Accordingly, procedures are being carried out for the future work of the Cabinet, Wickremesinghe added.

He also revealed that the Parliament Oversight Committees will be reenacted, thereby expressing that the government of Sri Lanka expects the support of the United States in this regard.

The President stressed that the Banking Sector of the country is being operated with a relatively weak atmosphere, and steps, therefore, will be taken to establish the Working Committee on Restructuring Economic Committees and Public Enterprises which comprises the Committee on Public Accounts (CoPA), the Committee on Public Enterprises (CoPE) and the Committee on Banking and Finance.

A legislative research service will be established in Parliament for the first time in Sri Lanka by opening a parliamentary budget office, Wickremesinghe further noted.

MIAP

Foreign remittances surge by 16 per cent

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Foreign remittances have surged by 16.4 per cent in August in comparison with the month before, signing positive growth in forex reserves amidst the country’s worst economic crisis.

Forex reserves dropped due to a number of reasons including the Covid-19 pandemic in recent years and Sri Lankan expatriates declined remitting dollars to the country, hence the dollar crisis.

The reserves, however, are now indicating a rise, and Sri Lankans living overseas have remitted a total of US $ 325 million in August in contrast to that of July, which was US $ 279 million, a growth of US $ 46 million in a month.

Meanwhile, the number of Sri Lankans who have registered with the Foreign Employment Bureau of Sri Lanka within 2022 seeking career opportunities overseas has exceeded 200,000, and the government intends to send another batch of 130,000 people for overseas jobs before the end of the year, said Labour and Foreign Employment Minister Manusha Nanayakkara.

MIAP

President forgets why his predecessor had to go home: Opposition Leader

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Despite Ranil Wickremesinghe being elected as the President under the blessings of the Rajapaksas, he has forgotten that it was the people’s struggle that sent the former President and the former Prime Minister home, said Leader of the Opposition Sajith Premadasa, addressing the Samagi Jana Balawegaya (SJB) Electoral Authority Board meeting in Dehiwala today (11).

Had the President remembered that, repression of this gravity would have never occurred, the Opposition Leader went on, reminding that after May 09, more than 3,500 people accused of attempting to change this corrupt regime have been arrested and more than 1,200 have been remanded.

The current regime is dragging the entire population of the country to their deathbed and is acting extravagant despite the land being sunken like the Titanic, he added.

MIAP