Students of the University of Kelaniya who were staging a peaceful demonstration against the government in Kiribathgoda area have been assaulted by a group of assailants this (13) afternoon.
Senior DIG Nilantha Jayawardena transferred
Senior Deputy Inspector General of Police in charge of the Central Province Nilantha Jayawardena has been transferred as Senior Deputy Inspector General of Police Assistant Services, the Police Media Division said.
Meanwhile, Priyantha Weerasuriya who served as the Senior Deputy Inspector General of Police Assistant Services has been appointed as the Senior DIG in Charge of the Central Province.
Jayawardena previously served as the Director of the State Intelligence Service during the Good Governance government.
MIAP
Debt Default: Did Sri Lanka pull the plug just for US$ 78 million?
For the first time in history, Sri Lanka yesterday (12) declared it will temporarily default on its foreign debt services in its inability to repayment.
Commenting on the situation, Governor of the Central Bank of Sri Lanka (CBSL) Nandalal Weerasinghe told media that Sri Lanka has completely lost its capacity to foreign debt repayment. He added that the plug has been pulled in the event that there is a debt due on April 18 and the consequences could be worse if it was not repaid without prior notice.
Further investigation into the event revealed that the so-called debt due on April 18 is a repayment of only US$ 78 million, behind which five instalments of, even more surprisingly, a lower value are due. A debt of heavy weight US$ 1029.38 is due on July 25.
There is no argument to the truth that US$ 78 million is a huge amount. Nevertheless, Sri Lanka is a state of twenty two million people and not one man’s business deal, considered of which there is still space for the argument that an amount of that value shall not influence such a far-fetched decision to declare debt default. Simply put, US$ 78 million does not even satisfy a week’s fuel supply to the country.
Sri Lanka has been repaying its foreign debt instalments in the manner of obtaining more debt over the recent period at least at a step behind the curtain of shame. But now that a ‘debt default’ has been announced, Sri Lanka has turned itself into an astronaut’s vessel being subjugated to self-destruct in the middle of deep space. In layman’s terms, Sri Lanka has unofficially announced itself bankrupt.
Economists of Opposition like MP Dr. Harsha De Silva and economy critics on Social Media giving popularity to the argument that money shall be used for consumption urged the government not to use them for debt repayment. The new CBSL Chief might have also endorsed this popular opinion. On the other hand, it is seemingly easier to declare that there is no money for debt repayment than to look for them somewhere.
Had Sri Lanka repaid the US$ 78 million debt along with other instalments at least assisted by other countries and stakeholders, had it not been so quick to declare a debt default, however at submission to hardship, it might have been able to obtain the Chinese debt of US$ 2200 by July 25. Had Sri Lanka passed that hardship, we might have been able to continue our international fiscal relations as a nation free from ‘bankruptcy’. But the government’s unexpected announcement yesterday declaring a debt default stemmed the Fitch Ratings to ‘monitor the downgrading of 13 public and private banks in Sri Lanka.’ Sri Lanka is now at the verge of being sucked into a blackhole in space.
Had the government been able to reach a definite understanding with the International Monetary Fund (IMF) before such a far-reached announcement that it would suspend debt services, had it been able to negotiate with the creditors and initiate a restructuring process, the situation might have been kept above water.
But that was not what has happened.
On the other hand, the new CBSL Chief’s conduct has been appreciated by Opposition MP Dr. Harsha De Silva. If truth be told, the government over the past two months has been doing what Silva was suggesting. Therefore, it would be more appropriate for Governor Weerasinghe to take over the responsibility of the Ministry of Finance at some agreement in Parliament, instead of preaching the shortcomings pleasuring the Opposition, for the responsibility of these actions must be borne by the experts who forecast the solutions themselves.
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Pakistan, Sri Lanka crises lessons for countries to not fall for China’s debt trap
WASHINGTON: The over-dependence on China for economic development could be a miserable option for any country, and the latest examples of it, are Pakistan and Sri Lanka which have been facing a dire financial crisis at present, according to reports.
It is not a coincidence that these two countries have been the biggest beneficiaries of economic “assistance” from China. But instead of becoming more resilient, they folded up in the wake of the global economic crisis brought about by a pandemic many suspects originated in Chinese laboratories, Global Strat View reported.
China’s “Debt Trap” policy follows a similar global pattern. Pakistan, an “all-weather friend” of China, remains another example, which, according to a recent World Bank Report, now finds its place in the world’s 10 largest borrowers.
Pakistan owes most of its debt to China. The China-Pakistan Economic Corridor project, which aims to connect Gwadar Port in Pakistan’s Baluchistan with China’s Xinjiang province, is a flagship project of China’s BRI.
Further, it has been argued by various analysts that China is using “debt-trap” diplomacy to gain access to strategic assets in Pakistan. The infrastructure projects in Pakistan were financed by Chinese banks.
Meanwhile, the crisis in Sri Lanka was apparent after the pandemic that dried up the international tourist traffic to the island nation, one of its main foreign exchange earners, the country’s debts spiralled and foreign exchange reserves
shrunk as the end result of reckless borrowings from China to finance infrastructure projects, reported The Hong Kong Post.
With tourism hit by the pandemic, the economic structure of Sri Lanka, which was already tottering under the heavy burden of loans, crumbled. A major part of this debt was owed to China, which accounts for nearly USD 8 billion.
This debt burden was a result of China’s Belt and Road Initiative (BRI) projects like Hambantota Port and Colombo Port City for which Chinese agencies lent large amounts to Sri Lanka under stiff terms of repayment.
Notably, in 2021-22, Colombo’s debt repayment to Beijing amounted to nearly USD 2 billion. Further, Hambantota port has already been leased out to China for 99 years against USD 1.2 billion.
In the face of the deepening foreign exchange crisis, Sri Lanka President Gotabaya Rajapaksa sought China’s help in December 2021 as he requested a debt restructuring in a meeting with China Foreign Minister Wang Yi. However, Beijing has reportedly shown Colombo the door, according to the media outlet.
Ironically, the deeply pro-China Rajapaksa government dug its own grave as it had booted out the Millennium Challenge Corporation (MCC) of the USA with its offer to extend developmental assistance grant to Colombo as the Board of Directors of MCC discontinued its USD 480 million contract with Sri Lanka in December 2020 “due to lack of partner country engagement,” the publication reported citing the
US embassy.
Further, China-assisted projects in Sri Lanka are likely to deepen the indebtedness of the island nation.
Notably, China refused to assist Sri Lanka which appealed to reschedule its huge Chinese debt burden in the face of the Covid-19 outbreak that has adversely affected the tourism sector, said a media report.
Chinese loans have come at a hefty cost for Pakistan and Sri Lanka. The slow bleeding would have continued for a few more years without the extent of the damage being recognized by them. While the warnings by experts have been ignored by Colombo and Islamabad alike, the pandemic, followed by the Ukraine-Russia conflict, has exposed how vulnerable both economies had become due
to indiscriminate borrowing from China.
Two countries going down almost the exact same way is not a coincidence. Other countries tempted by the Chinese-inspired dream of rapid economic progress need to think twice before embracing economic engagement with the dragon. Whether it will make them more resilient or vulnerable to shocks is the question they need to ask.
Countries like Madagascar, Maldives and Tajikistan are also reeling under Chinese debts.
04 hidden fuel bowsers found
Four fuel bowsers have been found hidden in a car park in the Bopitiya area in Pamunugama. The fuel was found during a raid carried out by the Pamunugama Police.
Police say that there were 02 diesel bowsers, a petrol bowser, and a kerosene bowser. It is reported that this stock of fuel belongs to a petrol station owner in Wattala.
A case is to be filed against the owner of the petrol station and the suspect has been instructed to appear before the Welisara Magistrate’s Court.
PM extends invitation to youth engaged in protest at Gallface
Prime Minister Mahinda Rajapaksa says that the government is ready to hold discussions with the protesting youth groups at Galleface Colombo.
Accordingly, the Prime Minister has told Derana that he would invite them for discussions.
Extraordinary Gazette issued extending restrictions on 367 types of imported goods
An Extraordinary Gazette Notification has been issued extending the import restriction period for 367 non-essential import items.
This gazette notification has been issued by the Minister of Finance Mohamed Ali Sabri.
Many types of food, including fruits and dairy products, electrical appliances and beauty products are subject to these restrictions.
Youth’s protests for democracy should be properly understood – Sajith (VIDEO)
Opposition Leader Sajith Premadasa says that the youth have taken to the streets for democracy and that their protests should be properly understood.
Although the government took steps to save the lives of war heroes, the world knows who took revenge on war heroes, including Sarath Fonseka, who won the war, he said, adding that everyone knew who betrayed the dignity of war heroes.
The Leader of the Opposition said that he would not hesitate to take any constitutional decision beyond the no-confidence motion, an impeachment motion for democracy, to abolish the 20th Amendment and strengthen the 19th Amendment, and to abolish the executive presidency.
Sajith Premadasa has said that there is an opportunistic transfer of MPs and ministers today and that this is not what the people of this country are demanding.
The Leader of the Opposition made this statement to the media at the office of the Leader of the Opposition yesterday (12).
Maithripala Sirisena says SLFP will not have any more dealings with Government
Former President Maithripala Sirisena yesterday said the SLFP did not want to have any dealings with the Rajapaksas, and recollected that he was the first person to have broken ties with them.
“We will not have any dealings with this Government. We will not send them any more letters or have anything to do with them. All our meetings and discussions with the Government are over,” Sirisena said while addressing the SLFP’s Colombo District members.
He said the SLFP had made several proposals to the Government to help those who are badly affected economically, but they have been ignored.
“We are with those carrying placards for the Rajapaksas to go home,” he said.
He added that SLFP MP Shantha Bandara who took a State Ministerial post has committed political suicide. “Joining an unpopular Government like the present one is the end of his political career.“
Protestors prepare to celebrate Sinhala and Tamil New Year at Gotagogama
The protest that started on April 09th near the Galleface in Colombo to protest against the President and the government continues to be active today (13).
During the past four days, people from various parts of the island have set up tents near the Galleface and have been staying there, despite the rains.
They have named the protest camp ‘Gotagogama’ and are preparing to celebrate the Sinhala-Tamil New Year from there.
The protest is being organized by the people voluntarily without the leadership of any political party and is receiving the support of various professionals, artists and religious leaders.
This protest is sure to be marked as a new experience in the political history of Sri Lanka so far.
