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SL to temporarily suspend debt servicing. Are repercussions being handled?

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The Ministry of Finance has announced that all normal debt servicing will be suspended for an interim period pending a consensual restructuring of the obligations consistent with an International Monetary Fund (IMF) supposed economic adjusted programme. 

The government intends these emergency measures as temporary expedients designed to preserve the financial status quo until with the assistance of the IMF and Sri Lanka’s other official sector partners, a full economic recovery program can be made, the notice says.

The Government is taking the emergency measures described in this memorandum only as a last resort in order to prevent a further deterioration of the Republic’s financial position and to endure fair and equitable treatment of all creditors – commercial and bilateral – in the comprehensive debt restructuring that now seems inescapable, it added.

Conclusively, this would be an official statement to confirm that Sri Lanka is now bankrupt.

This begs the question as to whether the President and the Cabinet are aware of such a decision and whether the move has been approved by either party with regard to the very serious repercussions that might follow with such a decision.

The Finance Ministry has to explain whether a comprehensive Cabinet paper has been submitted prior to such an announcement and whether the IMF and the World Bank supported the move.

It should also explain whether such assurances have been obtained from the IMF and the World Bank themselves prior to making such a far-reaching announcement.

Sri Lankan Nightingale Nanda Malini joins public protest (VIDEO)

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As the public protest demanding the stepping down of the President and the Government is continuing for the forth consecutive day today (12), Nanda Malini, the Sri Lankan Singing Legend, joined the demonstrators together with another Legend in Sri Lankan Music, lyricist Prof. Sunil Ariyaratne.

MIAP

Govt. has a plan to create a provocative event against the ongoing protests – Pubudu Jayagoda

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Frontline Socialist Party (FSP) Publicity Secretary Pubudu Jayagoda says that the government has a plan to create a provocative event against the ongoing mass protests near the Galleface.

He alleges that the bhikku procession which started from the Nelum Pokuna Mahinda Rajapaksa Theater a short while ago is coming towards the Galleface and that the government has deployed a group to attack the bhikku procession.

Project to grow raw industrial cannabis in Sri Lanka gets underway 

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 A high-powered five-person team has come together to promote the growth of raw industrial hemp (medicinal marijuana) in Sri Lanka. 

They are Lead Marion Marithasan from Denver, USA, former Ambassador Buddhi Athauda from Washington DC, USA, Senior Advisor Entrepreneur Dr. Arosha Fernando from Colombo, Sri Lanka, Operations and Programme Management Head Nish Hettigama from Sydney, Australia, and Local Research and Development Head Lahiru Dileepa Fonseka from Colombo, Sri Lanka.   

Fernando in a statement said Marithasan is one of only twenty people selected to serve on the Biden-Sanders pre-election task force in the USA in 2020 assigned to investigate the legalising of cannabis at the federal level and served as an Advisor to the President of the USA Joe Biden. 

Marithasan has compiled the new task force for Sri Lanka from native-born Sri Lankans with specific skills who can work with the Sri Lankan Government to assist with any transition to growing raw industrial hemp within a responsible regulatory framework of international standards under the tag line of ‘for the service of the Sri Lankan Government and our people.’

“Raw industrial hemp is one of the world’s fastest-growing global markets. Over 70 countries worldwide produce raw industrial hemp, including the USA and China. 

Having never banned hemp, China is the world’s largest producer, and the global raw industrial hemp market is forecasted to grow by 300% or USD 10 billion in the coming five years. 

Sri Lanka offers some of the world’s best-growing environments for raw industrial hemp. Making our legislation capable of capturing this global opportunity, we are in a position to bring a large foreign revenue to Sri Lanka solving our current foreign revenue crises,” said Senior Advisor Fernando during the inaugural meeting of the taskforce held last week in the Galle Face Hotel.    

“In 2005 Marithasan founded Ceylon Solutions and since then, Ceylon Solutions has brought millions of dollars into the Sri Lankan economy. 

It has also brought jobs, knowledge, and training in cutting-edge international technologies, which has improved opportunity and living standards for hundreds if not thousands of Sri Lankans. 

“Today, Marion is at the cutting edge of the emerging cannabis and hemp industries that he co-founded and leads the regulatory and operational compliance organisation, Simplifya.

 Marion who is passionately a Sri Lankan bringing his expertise and resources to help Sri Lanka move ahead of the early market expansion, leverage global opportunity, provide jobs, education, and opportunities for fellow Sri Lankans, and more importantly solve our current foreign revenue crises,” Fernando added.

The group is expected to meet the key decision-makers in the Government of Sri Lanka (GOSL) in the coming days to discuss how best GOSL could help it to implement the proposed project by making the right legislation at the earliest possible not only considering the current financial environment of the country but also carefully evaluating the case studies from other countries including the USA.   

 “The hemp industry poses for Sri Lanka on multiple fronts: job creation, new manufacturing businesses, and tax revenue through exports. 

We also see the opportunity for the local manufacture of hemp-derived 100% earth-friendly biodegradable products, that will transition Sri Lanka from being one of the biggest users and polluters of plastics to being one of the first countries to become free of plastics, something that Sri Lanka can be proud of and showcase on the world stage,” Fernando added.

A march in support of the government commenced from Nelum Pokuna premises

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A march in support of the government under the theme ‘Do not touch the Sinhala Buddhist referendum under the guise of fake protests’ has commenced today (12) from the premises of the Nelum Pokuna Mahinda Rajapaksa Theater in Colombo.

It was attended by a large number of Buddhist monks and social media activists.

Rapper entertaining at Galleface protest dies of heart attack!

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A singer who was participating in the ongoing protest near the Galleface and singing at it has passed away last night (11).

Shiraz Younus, a pioneer of rap music in Sri Lanka, has died of a sudden heart attack. (Shiraz – Rude Bwoy Lankan)

He had a sudden heart attack while singing and was rushed to the hospital in an ambulance but was pronounced dead at the scene.

Shiraz last sang “Get up stand up – stand up for your rights” sung by world-renowned singer Bob Marley during the Galleface protest.

We salute him.

An emergency financial assistance of US $ 10 million from the World Bank to purchase essential drugs

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The World Bank has approved the immediate release of US $ 10 million for the purchase of essential drugs for Sri Lanka.

That was after a discussion with Finance Minister Mohamed Ali Sabri yesterday (11).

Interest rates on Treasury bills rise to record levels

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The yields of the Treasury bill auction yesterday jumped across the board to their highest levels in many years, in line with Friday’s 700-basis point rate hike by the Central Bank, under its new Governor Dr. Nandalal Weerasinghe.The unprecedented monetary tightening sent jolts across the bill yields, as they rose between 559 basis points and 767 basis points, recording the highest single-day surge ever in Sri Lanka’s financial market history.

The three-month bill yield jumped 559 basis points to 19.79 percent, while the six-month bill yields surged 731 basis points to 22.73 percent.

The benchmark one-year bill yields registered the highest-ever jump, rising 767 basis points to settle at 23.36 percent.

The bill yields were the earliest to reflect Friday’s shock move by the Central Bank, which delivered the highest ever increase in key policy rates since the 300-basis point hike in 2001.

Soon after raising the interest rates, Dr. Weerasinghe said he wants to see the response of the rate hike when the markets reopen on Monday.

How the stock market would absorb the rate hike effect could not be seen on Monday, as the market was closed on April 11 and 12, after the government declared special public holidays prior to the Sinhala and Tamil New Year holiday that falls on the 13th and 14th.

The rationale for the aggressive hike in key rates, according to the Monetary Board, is to rein in the inflation, which is galloping at more than 14-year highs and the Central Bank’s inflation forecasts showed inflation peaking at 28 percent in three months.

At the auction held yesterday, the Central Bank offered Rs.87.5 billion in bills across the three tenures but accepted Rs.81.9 billion, as the Public Debt Department as usual accepted little amounts from six-month and one-year bills, although there was some improvement in bids received and amounts accepted than previous weeks.
According to dealers, there is further scope for the bill yields to rise and they do not rule out the one-year bill yields above 30 percent in the next couple of weeks.

If that happens, banks can raise deposits and put them in Treasury bills and do nothing else and still make a nice risk-free profit in the next couple of years.

Every second you protest in the road, we are losing dollars – PM

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Prime Minister Mahinda Rajapaksa says that every second that people protest in the streets, the country loses the opportunity to receive dollars.

He said this while making a special statement to the public last night (11).

The full statement is below.

No photo description available.

Humanitarian service launches to aid over 100,000 affected families

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In a mission to provide emergency relief to the worst impacted families and communities in the country due to the ongoing economic crisis, Dialog Axiata PLC, MAS Holdings, Hemas Holdings PLC, Sarvodaya Shramadana Movement, and PwC Sri Lanka joined forces to launch the ‘Manudam Mehewara’ relief initiative.

Driven by its shared values and vision of providing immediate assistance to marginalised and vulnerable communities, the ‘Manudam Mehewara’ corporate coalition joined hands with like-minded partners including Sarvodaya, which will identify and provide emergency relief to more than 100,000 adversely affected families, especially communities in deep poverty.

PwC partnered with the initiative pro bono to monitor financial governance and reporting as per compliance requirements of the corporate partners. Furthermore, ITN, Siyatha, Swarnawahini, TV Derana, and Vasantham joined the effort as media partners.

Manudam Mehewara will commence operations on 10 April, where urgently required, essential dry rations packs will be distributed to families in need across all 25 districts.

Commenting, Dialog Axiata Group Chief Executive Supun Weerasinghe said: “We are grateful to MAS, Hemas, our project execution partner, Sarvodaya, and accountability partner PwC for joining us in this endeavour to provide emergency relief to more than 100,000 families in need across the country.

“As the trusted digital companion of over 17 million Sri Lankans, we recognised the immediate need to step forward to help relieve the impact on our adversely affected communities.

MAS Holdings Group CEO Suren Fernando said: “MAS is an organisation that is known for its social conscience, and at times like this we are privileged to be able to act upon one of MAS’ core values, giving back to the community and the country we call home.

“Having worked with Sarvodaya many times before, we are convinced that if anyone has the bandwidth and capability to significantly make a difference to these vulnerable communities, it is them. Sarvodaya is the ideal implementation partner, with its philosophy and its island-wide network of resources.

“I do sincerely hope that other corporates in Sri Lanka are inspired to join us, recognise the need to act now, and come together through this program or find ways that are within their means to support the people of this nation during their time of desperate need. This is our nation, our people, and our collective responsibility.”

Hemas Holdings Group CEO Kasturi Chellaraja Wilson said: “As a Sri Lankan corporate it is our responsibility to ensure that we address the immediate needs of our people across the country.

Our purpose, making healthful living happen, focuses on eliminating inequality and this partnership aligns with our ongoing efforts. In the upcoming months, we will continue to work with partners and carry out interventions that will relieve the burden of our communities and our employees.”

Expressing his thoughts on this initiative, Sarvodaya Shramadana Movement President Dr. Vinya Ariyaratne said: “We are pleased to join hands with such high-calibre companies like Dialog, MAS, and Hemas to launch this humanitarian initiative to provide emergency relief to the families most adversely affected by the current economic crisis.

The Manudam Mehewara programme will be conducted for 60 to 90 days until a sustainable benefit transfer system is established in the country through an effective economic recovery plan.