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Sri Lanka’s tea farmers struggling to survive

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Leaves from the lush green tea estates covering the hills of central Sri Lanka end up in cups across the world.

Tea is the island’s biggest export, normally bringing in more than $1bn a year, but the industry is being hard hit by the unprecedented economic crisis.

Most of Sri Lanka’s tea is grown by smaller farmers, like Rohan Tilak Gurusinghe, who owns two acres of land close to the village of Kadugunnawa.

But he’s still reeling from the impact of a sudden, poorly thought-out government decision to ban chemical fertiliser last year.

“I’m losing money,” he tells the BBC despondently. “Without fertiliser or fuel, I can’t even think about the future of my business.”

The ban, ordered to try to protect the country’s dwindling foreign reserves, was one of a number of disastrous policy decisions implemented by the now-ousted President Gotabaya Rajapaksa, with agricultural output falling significantly.

It was later reversed, but fertiliser has shot up in price and is still difficult to source, while the government is now unable to afford to import adequate supplies of petrol and diesel.

For farmers like Mr Gurusinghe, reliant on trucks transporting tea leaves from his fields to factories for processing, it means delays which can lead to the leaves drying out and reducing in quality.

“Our leaders are not bothered about providing us with the basic necessities,” he tells the BBC.

“They’re the ones who have put us in debt: by stealing dollars and spending them however they want. Right now, Sri Lanka is like a ship stranded at sea.”

The huge queues of vehicles waiting in line for fuel aren’t just in Sri Lanka’s capital, Colombo, but across the island.

Public anger at the crisis, which is also rooted in the impact of the Covid-19 pandemic on the island’s tourist industry, has led to the resignation of President Rajapaksa.

Protesters have also indicated they won’t accept Ranil Wickremesinghe, the politician looking most likely to be nominated by parliament as Mr Rajapaksa’s successor.

Mr Wickremesinghe is seen by critics as too close to the Rajapaksa dynasty. As a former six-time prime minister, he doesn’t represent the change demonstrators have called for.

Further political instability, however, will make resolving the economic crisis even more challenging.

Among tea factory owners, there is deep frustration. Tea exports are a valuable source of dollars and the industry employs some two million people, but production levels have dropped.

Meezan Mohideen heads a large estate and factory in Ancoombra. “Without the fuel, we are finding it very, very difficult. If this goes on, we might have to shut down all factories,” he told the BBC.

“Normally, about 20 lorries are running for us. Now we are running eight lorries. And with the power cuts, there are factories which have closed down – working three, four days a week.”

Mr Mohideen’s factory had drastically cut down the number of days it was operating until, because of its size, it managed to source fuel through a private importer.

Other, smaller factories are struggling even more. But it’s the poorest who are suffering the most in this crisis.

Tea pluckers, working in the fields, picking out the tender tea leaves and placing them in large sacks tied around their waists, are generally paid little more than the minimum wage.

But food prices in Sri Lanka have been soaring. Inflation in June, compared with the same period last year, was more than 50%.

While carrying the sacks of leaves to be weighed, close to the colonial era “line houses” where they live, tea pluckers from Mr Mohideen’s estate complained of how much more difficult everyday life had become.

“In the past, we could get by, but now prices have more than doubled,” says Nageshwri. “Whatever we earn in a day, we’re spending to eat.”

“We don’t eat lunch any more,” adds Panchawarni, “we eat once around 10:00, and then again in the evening.”

The Sri Lankan government is in the process of sourcing more fuel and is also in talks with the International Monetary Fund, but for now, whoever takes charge of the country, the hardship looks set to continue.

BBC News

Rohan Tilak Gurusinghe says the high price of fertiliser is killing his business
Meezan Mohideen’s tea factory has seen production levels fall

Collateral damage: China, Sri Lanka and a developing debt crisis

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There is nothing new about nations collapsing under the weight of their debts. But Sri Lanka’s awful predicament highlights three new aspects of our world.

It’s a sign of our times, first, because Sri Lanka’s debt crisis is not a one-off but likely the first in a new wave of national sovereign debt disasters.

Second, while China has been the biggest lender to many poor countries for years now, this is the first major, uncontrolled collapse where China is a dominant lender.

This throws open big questions about how it handles its new power over the fates of nations when they’re at their most vulnerable.

Third is that, for all its size, China is starting to run into debt problems of its own. Can it continue to be the major source of loans to the developing world?

When Sri Lanka’s President Gotabaya Rajapaksa abandoned his palace to rampaging protesters last week and fled abroad – emailing his resignation from Singapore in a contemporary twist – it brought the political crisis to a head. A parliamentary vote for a new president is expected this week.

But the economic suffering goes on. About a quarter of its 22 million people aren’t getting enough to eat as a result of government incompetence, according to the World Food Program. Lacking the foreign exchange to pay for imports, the country survives on bare subsistence.

Sri Lanka’s government should have gone to the global emergency lender – the International Monetary Fund – for help when the pandemic first hit and its foreign exchange earnings from tourism evaporated.

But, instead, it went to Beijing, the so-called ATM of the developing world. China has more money on loan to the world’s poor countries than the combined lending of the 22 rich nations that make up the Paris Club of creditor countries, according to the World Bank.

Beijing loaned Sri Lanka an extra $US3 billion. But without a debt restructure on its existing $US35 billion or a policy correction, this money was soon gone too.

The International Crisis Group’s Alan Keenan faults Beijing on two grounds. One, it encouraged expensive infrastructure projects that failed to produce major economic returns.

“Equally important has been their active political support for the ruling Rajapaksa family and its policies,” says Keenan. “These political failures are at the heart of Sri Lanka’s economic collapse.”

Sri Lanka has since turned to the IMF for emergency credit but the Washington-based lender can’t negotiate with a country that has no leader.

The island nation was the most exuberantly reckless, but it’s one of many countries carrying more debt than it can afford.

Before the pandemic, the IMF was supporting about 20 countries. Today it supports 90. COVID cost countries everywhere a fortune.

Now there is a new drama. The US is raising interest rates in an effort to curb inflation. But higher American interest rates are a magnet for investors’ capital as it is drawn to higher returns.

Capital has started rushing out of the rest of the world and gushing into the US. As a result, the greenback is surging against other currencies, even reaching parity with the euro for the first time in 20 years.

This just makes it even harder for poor countries to pay for their imports and service their foreign debts. In fact, most of the world’s poor countries – 60 per cent of them – are now in debt distress or at high risk, according to the World Bank.

“Countries with high debt levels and limited policy space will face additional strains,” said IMF Managing Director Kristalina Georgieva on Saturday. “Look no further than Sri Lanka as a warning sign.”

Others high on the danger list include Laos, Pakistan, Bangladesh and the Maldives. And guess who has been a big lender to all of them? Their friendly neighbourhood ATM, China. As one commentator put it, “China’s Belt and Road program has hit a major pothole”.

Even worse for Beijing, China has been lending prodigious sums to Russia in recent years – $US125 billion. In fact, Beijing is Russia’s biggest creditor, says the World Bank. But with Moscow groaning under economic sanctions as it tries to pay for a war, Vladimir Putin is hardly a good credit risk.

SMH

The Rajapaska brothers: Mahinda Rajapaksa, Gotabaya and Basil, photographed in April, have dominated Sri Lankan politics for a decade. They also have strong ties to Beijing. AP
IMF managing director Kristalina Georgieva: “Look no further than Sri Lanka for a warning sign.” BLOOMBERG

Sri Lanka opposition leader quits presidential run in bid to stymie Wickremesinghe

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Sri Lanka’s main opposition leader, Sajith Premadasa, has withdrawn from the presidential race and thrown his support behind a rival candidate, presenting a significant challenge to prime minister Ranil Wickremesinghe’s bid for the executive role.

In an announcement made on Tuesday morning, Premadasa said that “for the greater good of my country that I love and the people I cherish, I hereby withdraw my candidacy for the position of president”.

Premadasa instead pledged his support for Dullas Alahapperuma, the candidate from a breakaway group of the ruling Sri Lanka Podujana Peramuna party (SLPP).

The decision to withdraw from the presidential race is believed to be driven in part by the tough political future that any president who takes on the role now faces. The new government, which is proposed to be a cross-party unity government, is likely to only last six to eight months until the country can afford to go to parliamentary elections. Presidential elections are not due till November 2024.

Premadasa’s support brings with it all the votes from his opposition Samagi Jana Balawegaya (SJB) party. It significantly improves Alahapperuma’s chances of beating Wickremesinghe, the prime minister and acting president who will run as the SLPP’s official candidate in the secret ballot, which takes place in parliament on Wednesday.

It will now be a three-way vote between Alahapperuma, Wickremesinghe and leftist leader Anura Dissanayake, who were all formally nominated by legislators in a brief parliamentary session on Tuesday morning.

Both Wickremesinghe and Alahapperuma are considered controversial presidential candidates by the public, due to their close association to former president Gotabaya Rajapaksa, who was forced to flee the country and step down last week after mass protests.

It is likely to be a right race. Wickremesinghe has the backing of the majority of the ruling SLPP, who have the most seats in parliament. However, according to those close to Alahapperuma who spoke to the Guardian, the support of the SJB – and other opposition parties likely to follow – means they now believe they are assured of enough votes to beat Wickremesinghe.

Those close to Alahapperuma said that a deal had been struck whereby Premadasa would be prime minister, and SJB MP Harsha da Silva, who is an economist, would be finance minister in a unity government, under Alahapperuma as president.

Alahapperuma served as the minister of mass media in Rajapaksa’s cabinet for over two years, and was part of the SLPP government that is held responsible for driving the country into its worst economic crisis since independence.

Public protests against Wickremesinghe have been particularly vociferous. A six-time prime minister, he took over as a caretaker prime minister in May and was swiftly accused of propping up and protecting the Rajapaksa family, and, after the president resigned, taking on presidential duties without any legitimacy. His private residence was burned down and his prime ministerial home and offices were taken over by protesters last week demanding he step down.

Wickremesinghe caused further outrage by using his powers as acting president to declare a state of emergency on Sunday night “in the interests of public security”.

Meanwhile, Sri Lanka’s economic situation continues to worsen, with a lack of fuel and cooking gas and more food shortages likely in the future. The new president would also have to oversee a government composed of usually opposing political parties, and will be ruling at a time of political turmoil for the country, with a mass protest movement – known as the aragalaya – mobilised on the streets and calling for political accountability.

On Tuesday, across the commercial capital of Colombo, mass protests demanding Wickremesinge’s resignation were planned by students and protest groups.

TheGuardian

Ranil Wickremesinghe: wily fox who’s been Sri Lanka’s PM six times

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There are few who have been stalwarts of Sri Lankan politics in the last half-century quite like the man often referred to as “the fox”.

Ranil Wickremesinghe, who gained his nickname for his apparently wily ability to repeatedly resurrect his political career, has been prime minister six times since he first entered politics in 1977, though he has famously never completed a term.

A lawyer by profession, his first ascension to the role of PM came in 1993 after the assassination of the then president Ranasinghe Premadasa, who was killed in a bomb attack by Tamil separatist militants during Sri Lanka’s three decades-long civil war. But, in what would become a running theme during his career, his term did not last long.

Over his various terms in office, both as prime minister and opposition leader, Wickremesinghe became known for being economically capable and a pro-western reformer, particularly for his role steering the country out of a recession in 2001. Yet despite his insistence that he was a “clean” politician, he was not untouched by corruption allegations, and was accused in being involved in an insider trading scam at the central bank. He always maintained his innocence.

After he became prime minister in 2015, Wickremesinghe was also accused of protecting the Rajapaksa family – who were political opponents but with whom he had close personal ties – from facing prosecution over alleged corruption and human rights abuses. While investigations were initiated against the family, they ultimately came to nothing.
By the time Wickremesinghe had resigned as prime minister in 2019, there was mass public disenchantment with him, in part as a result of his role in government dysfunction that was seen to have enabled the 2019 Easter terrorism attacks.

He lost his seat in the 2020 parliamentary elections and had to enter parliament through a list system, the sole parliamentary representative for his once powerful United National party.

But it was in May this year that Wickremesinghe was brought back in from political near-obsolescence to be Sri Lanka’s caretaker president, as the country grappled through its worst economic crisis since independence.

He took on the post at the special request of embattled president and longtime friend Gotabaya Rajapaksa, who was facing an ongoing political crisis including mass protests demanding he resign.

In the space of just a few weeks, Rajapaksa had been forced to dissolve his cabinet twice and after his older brother Mahinda, who was prime minister, resigned, the president was desperately looking for a replacement after opposition leaders rejected the post.

Wickremesinghe was pitched to the public as a capable, experienced pair of hands, who could help the country navigate this severe financial crisis and negotiate with international organisations including the International Monetary Fund. But among protesters who had been calling for president Rajapaksa to go, Wickremesinghe’s decision to accept the role was seen as a betrayal of the people’s movement, and he was instead accused of propping up and protecting the Rajapaksa family as he had done for decades.

As resentment towards president Rajapaksa grew over recent weeks, anger began to be directed at Wickremesinghe too. Calls began to mount for him to resign, and on the night of 8 July when protesters stormed the presidential palace and offices, the prime minister’s official residence was also occupied and Wickremesinghe’s private home burned to the ground. On 13 July, just as president Rajapaksa was due to step down, protesters then occupied Wickremesinghe’s official offices to make clear they also wanted him out.

Since president Rajapaksa stepped down on Friday, the rallying cry of protesters has turned to “Ranil go home” after he temporarily took over the role . Yet news that Wickremesinghe intends to formally stand in this week’s secret ballot in parliament, when MPs will vote for the new president, has been met with rage by many on the streets, who do not see him as the change they have spent many months fighting for. His chances of election are high, as he has the backing of the Rajapaksa’s ruling party, who still have the most seats.

Yet many fear there will be further unrest on the streets if he becomes Sri Lanka’s next president. “Ranil Wickremesinghe should also step down because he came in defence of this corrupt system and he has failed five times before as prime minister,” said Father Jeevantha Peiris, a Catholic priest who has been a protest leader. “As citizens we don’t accept him, we don’t need another corrupt leader.”

TheGuardian

Tea factory owners fear total closure with tea crop plunging to 23 year low

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Tea factory owners fear total closure owing to the worsening fuel crisis and other shocks putting much needed foreign exchange earnings at risk amidst lowering of tea production after 23 years.

Sri Lanka Tea Factory Owner’s Association President Lionel Herath noted that there is a serious risk of all the tea factories in seven districts across the country coming to a standstill if sufficient fuel stocks are not received in the next few days.

“Right now, the factories are working three to four days per week as the rest of the days the employees are in fuel queues,” he added.

Tea production in June hit a 23-year low of 20.1 million kilos, Asia Siyaka Commodities PLC revealed yesterday.

It said the lowest crop for the month of June was 19.3 million kilos recorded in 1999. The June 2022 crop is also down 22% YoY from 2021 quantity of 26 million kilos.

Asia Siyaka said high grown tea production of 4.05 million kilos in June was lowest ever on record, with closest to this figure was 4.5 million kilos in 2004.

The Low Grown tea production amounted to 13.1 million kilos down 16% from a year ago. The 2022 June figure is the lowest since 2007 when 12.8 million kilos was produced.

Mid Grown crop of 2.9 million kilos was also the lowest in record and was down 44% from last year.

Asia Siyaka said tea production for the first half of the year has dropped by 18% to 132.9 million kilos from a year ago. High Grown production was 31.2 million kilos compared with 36.6 million kilos the year before.

“One has to go back to the El-Nino year of 1992 when a severe drought limited production in the first half to 29.1 million kilos to find similar production figures,” Asia Siyaka said.

Low Grown crop of 79 million kilos reflected an 18% drop from 1H of 2021.

Sri Lanka Tea Factory Owner’s Association President Lionel Herath claimed the Power and Energy Ministry’s support extended to one of the oldest and key export industries has been disappointing.

Some tea factory owners have paid money to get fuel and built necessary storage tanks, but the fuel has not been provided till now.

Three months ago, our main issue was fertilizer, now it is the shortage of fuel to operate the factories,” he added.

It was pointed out that in the seven tea-growing districts, 264 private tea factories and another 258 factories under the plantation companies and non-members operating across the country are operating with utmost difficulties.

As per him over 400,000 tea smallholders and nearly two million people or 10% of the total population are engaged in direct and indirect jobs related to the tea industry and are suffering from multiple issues.

Herath said they discussed with the Plantation Industries Minister to ensure a steady supply of fuel. SLTFOA Joint Treasurer Dr. W. Jinadasa said due to the shortage and price of fertilizer tea production and quality have dropped significantly.

“Tea production has dropped by 20% to 30% due to fertilizer, whilst the tea buds quality (two leaves and a bud) have dropped by 60% – 70%.

There is a good price for tea in the market, but the industry does not have sufficient quality quantities due to short-sighted policies the Government implemented and the cost across the board has increased by three to four folds,” he added.

He also pointed out that the use of fertilizer has dropped by 80%, given the high prices at present.

India overtakes China to become top lender to debt-laden Sri Lanka

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India has surpassed China to become the top lender to Sri Lanka, as the former came to the rescue when Sri Lanka started experiencing some acute shortage of foreign currency from the beginning of the year which reached a breaking point in March causing a complete collapse of the country’s economy.

Based on the data available on the disbursement of funds in the four months through April 30, India came on top, extending US$ 376.9 million worth credit compared to a paltry US$ 67.9 million extended by China.

However, this didn’t include the full package of foreign assistance from India, which approximated to US$ 3.5 billion through June this year by way of multiple credit lines, term loans and deferred loans.

India emerged as the first responder under Prime Minister Narendra Modi’s neighbourhood first policy when Sri Lanka was ditched by all other bilateral partners for funding support to ride out the dollar crunch which became more pronounced since the beginning of the year due to a confluence of external and internal factors.

As part of its US$ 3.5 billion package of assistance, in the four months through April, the two countries signed agreements for US$ 1.5 billion worth export credit facilities.

A US$ 500 million short term credit line was agreed on February 2, 2022 for two years, with a grace period of one year at the new benchmark rates for 6 months Secured Overnight Financing Rate (SOFR) plus 1.5 percent.

Another US$ 1.0 billion was agreed on March 17, 2022 for the importation of essential commodities for 3 months SOFR plus 1.6 percent payable in three years.

When the final credit line for fuel with India came to an end in mid June, Sri Lanka’s economy came to an abrupt halt causing widespread protests which culminated on July 09 which ended up chasing away the country’s embattled President Gotabaya Rajapaksa.

Dr. Ganeshan Wignaraja, a Senior Fellow at National University of Singapore speaking at a recent forum suggested that India could go bigger in bailing out Sri Lanka by giving leadership to the proposed donor summit with the rest of the bilateral and multilateral partners to provide up to US$ 25 billion in fresh funding in the next three years.

After India, Asian Development Bank (ADB) came in as the second largest lender with US$ 359.6 million being disbursed in the first four months, followed by the World Bank with US$ 67.3 million.

Despite wide expectations, China’s unwillingness or the reluctance to come to the rescue of Sri Lanka when it needed the most raised many eyebrows.

However, on Friday, Palitha Kohona, Sri Lanka’s Ambassador to China told Bloomberg News that the request for up to US$ 4.0 billion worth aid from the world’s second biggest economy and Sri Lanka’s largest bilateral funding partner until recently could come at some point.

Despite the severe hardships faced by people with lack of fuel, gas and many other commodities, China hasn’t also unlocked its US$ 1.5 billion equivalent Yuan denominated swap line with the Sri Lanka’s Central Bank for use.

Having exhausted all its options when Sri Lanka turned to the International Monetary Fund for a bail out in April, as China initially balked at the idea.

In the first four months, Sri Lanka took the receipt of foreign loans to the total value of US$ 968.1 million and US$ 0.7 million in grants.

Disinformation on bribe request for BIA expansion project exposed

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Details of a disinformation campaign to discredit the government by making allegations of asking a bribe from a Japanese company engaged in the construction work of the Bandaranaike International Airport (BIA) expansion project have been exposed.

A serious bribery allegation leveled against the senior minister Nimal Siripala de Silva by the opposition leader Sajith Premadasa in Parliament quoting un-substantive social media reports has cited the Japanese Taisei Corporation Sri Lanka LTD as the aggrieved party.

Aviation Minister Nimal Siripala de Silva has stepped down, temporarily from his post, pending an investigation into bribery allegations against him relating to the settlement of contractual issues of US$ 570 million Japanese International Cooperation Agency(JICA) funded Terminal-2 construction work of the BIA Development Project (BIADP) Stage 2.

When contacted to verify the truth behind these accusations, General Manager of Taisei Corporation Sri Lanka Maskato Sato said that he was shocked to hear such unfounded allegations leveled against Minister Nimal Siripala de Silva who has never asked for any bribe from the company.

He noted that JICA is funding the project as the investor and there was no involvement of the Japanese government in this endeavor

A decision to suspend funding or continue the project should be taken by JICA but there was no such decision whatever he said adding that media should desist from disseminate such false information damaging the friendly relations between the two countries.

Minister Nimal Siripala de Silva pointed out that this was a totally false allegation and there was no substantial evidence to prove any demand of bribe from the Japanese Company.

He categorically stated that he has made a request to conduct an investigation into this matter and he has decided to step down from the ministerial portfolio temporarily till the conclusion of the relevant investigation.

According to the JICA, the construction of the new passenger terminal building is expected to be completed in 2024.

The terminal building would be developed based on the concept of Eco-Airport, with advanced Japanese technology and know-how.

The concept includes rainwater harvesting for the landscaping works and recycled water from the sewerage treatment plant for flushing toilets, photovoltaic power generation, solar energy harvesting, LED lighting, energy-efficient glazing, etc.

After the completion of the terminal, BIA is expected to handle 15 million passengers per annum. A new apron and taxiways were unveiled under the BIA Expansion project recently.

The JICA’s total financing for the expansion of BIA is JPY 74,397 million or around Rs.113 billion, which has been provided under Special Terms for Economic Partnership.

The loan facility has been granted on concessionary terms, with 0.1 percent p.a. interest and a 40-year repayment period to promote technology transfer, build quality infrastructure and economic cooperation between Sri Lanka and Japan, JICA claimed.

SL economy to contract more than 6% with IMF loan stalled

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Governor of the Central Bank Dr. Nandalal Weerasinghe says that Sri Lanka’s economy is likely to contract more than 6% in 2022.

The CBSL Governor Nandalal Weerasinghe said that in 2022, the contraction will be much higher than 6% as political instability has affected the discussions on finance relief with the IMF.

The Governor mentioned that top-level talks with the IMF on a multibillion-dollar bailout had stalled.

He said that the country urgently needs a stable political administration to progress discussions with the IMF on key structural reforms, as well as to secure short-term bridge financing from other countries and multilateral agencies to help pay for key imports like fuel, pharmaceuticals and fertilizers.

The Governor stated that a $500 million extension expected last month hasn’t materialized, exacerbating Sri Lanka’s fuel shortages.

Similarly, there had been no progress on a $1 billion currency swap with the Reserve Bank of India, nor has China relaxed conditions to allow Sri Lanka to use a $1.5 billion currency swap.

Governor Nandalal, speaking to the WSJ, said “if Sri Lanka had gone to the IMF at least a year earlier than it did, and sought to restructure its debts while it still had $4 billion in reserves in hand. That would have allowed Sri Lanka to still afford to pay for essential imports to keep the country running smoothly and ease the financial suffering of its citizens. Instead, the Government chose to wait.”

IMF bail out turns bleak in political turmoil and confidential file grab

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Sri Lanka’s prospects of receiving the International Monetary (IMF) bail out package to avert the economic crisis became bleak with the intensifying of political instability and failure to reach a consensus on forming an all party government.

The country needs a head of state and cabinet of ministers headed by a prime minister capable of handling the local and international affairs while fulfilling the basic needs of the people and introducing social security networks for the poor and vulnerable community.

IMF and Sri Lanka have not reached understanding, on how to fulfill the key requirements for what could be a rapid financing instrument which would include policies to continue ensuring debt sustainability to address the balance of payment challenges including from the Covid 19 impact on tourism and to preserve international reserves,

Meanwhile Confidential files with important documents and reports relating recent discussions with the representatives of International Monetary Fund(IMF) and Sri Lankan authorities have gone missing from the Prime Minister’s Office following the invasion and take over of the building by protesters of the struggle.

All relevant reports and minutes of discussions between then Prime Minister Ranil Wickremasinghe and the IMF team of officials were kept under lock and key at the PM’s office for future reference due to its importance for obtaining bail out loans from the monetary agency , a spokesman of the PM’ s office said.

He added that these files with important documents have been misplaced during the period of forcibly occupation of invaders and protesters at the PM’s office who took over the office in a mass raid four days ago.

At the moment top-level talks with the IMF on a multibillion-dollar bailout has been stalled due to political impasse, a senior finance ministry official said.

.He said that the country urgently needs a political stability and stable administration to progress discussions with the IMF on key structural reforms, as well as to secure short-term bridge financing from other countries and multilateral agencies to help pay for key imports like fuel, pharmaceuticals and fertilizers.

It is last chance of getting donor agency support is now diminishing owing to the mishandling of public unrest in a humanitarian crisis as IMF’s assistance is linked to debt sustainability coupled with human rights , they added.

The economic downturn, dwindling foreign reserves and high inflation, political instability and countrywide public unrest have pushed Sri Lankan negotiators who sought US$ 4 billion assistance into a very weak position in their current talks .

Information about the petrol-diesel shipments that have arrived in the island so far…

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Energy Minister Kanchana Wijesekera says that two diesel ships are currently being unloaded.

Accordingly, the minister states that the fuel stock will be distributed from tomorrow (19) to fuel stations across the island by train and bowser.

Also, another diesel ship has arrived in Sri Lanka and it is also scheduled to land.

Meanwhile, a ship carrying 35,000 metric tons of petrol is currently being inspected.

Accordingly, it is said that after the completion of the work, the unloading of the petrol stock of the ship will be started tomorrow.