Sri Lanka is running out of time in commencing debt restructuring process with the delay in granting government approval to cabinet approved financial and legal advisers Lazard and Clifford Chance for the difficult task of renegotiating its debt of US$51 billion as the Attorney General’s Department is still to clear legal documents pertaining to the appointment, finance ministry sources said.
Representatives of the international financial and legal advisers have left the island after the conclusion of their preliminary observations on how to restructure Sri Lanka’s debt including the $6.4 billion of foreign debt outstanding, of which $ 1 billion International Sovereign bond was due on July15 or 16.
Inter national Monetary Fund (IMF) will have to bailout of debts to the tune of US$ 6.4 billion over the next three years, amidst an economic disaster in the country.
The COVID-19 pandemic caused supply chain disruptions, compounding the economic challenges across the region. The Ukraine-Russia conflict have further worsened the situation, as Western sanctions on Russia have caused devastating economic fallouts.
Cash strapped government must urgently seek funds from multilateral lenders and aim to restructure a debt payment due in July with political stabilityis essential amid the country’s worst economic crisis in decades, finance ministry said.
Sri Lanka’s Balance of Trade (BOT)[b] has been registering a consistent deficit, with an approximately increasing trend in deficits over the years
Between December 2021 and March 2022, Sri Lanka’s trade deficit decreased from US$ (-)1085 to US$ (-)762, denoting a drastic reduction in imports due to FOREX exhaustion and indicating the onset of the crisis situation in the economy
Sri Lanka’s creditors face losing up to half of their investments in the country’s dollar bonds, after the government announced it would restructure $11 billion worth of debt, the first financial shake-up of its kind in its modern history.
Formal debt talks haven’t started but analysts are already crunching the numbers to estimate what kind of losses could be inflicted on bondholders.
Mired in economic crisis, Sri Lanka has halted all external debt payments and is prioritising its remaining hard currency reserves to buy food and fuel
SriLanka debt restructuring delays amidst legal tangles
Proposal on CEYPETCO filling stations being handed over to foreign companies to meet Cabinet today
A Cabinet paper proposing the handing over of 1690 filling stations belonging to the Ceylon Petroleum Corporation (CEYPETCO) to qualified foreign companies is due to be presented to the Cabinet this Monday (27) revealed Energy Minister Kanchana Wijesekara, speaking to a briefing yesterday (26).
The Cabinet paper has proposed to hand over CEYPETCO filling stations to foreign companies on the condition of importing fuel to Sri Lanka under a credit scheme for at least six months or a year, the Minister noted.
The Indian Oil Company (IOC) has requested permission from the Sri Lankan government to establish 50 new filling stations in the country, Wijesekara went on, adding that discussions are underway to hand over several CEYPETCO-owned filling stations to the IOC as well.
MIAP
All sick. Ranil the doctor. Country saved by November: Vajira
The country can be directed into a positive path by November this year, should everyone extend their support to save it, said Chairman of the United National Party (UNP) Vajira Abeywardena, speaking to a briefing yesterday (26).
The 23 million people of Sri Lanka have now become sick and if everyone blesses Ranil Wickremesinghe, who is the specialist doctor that came to take care of them, without cursing him the country can be ‘corrected,’ he noted.
The former MP further claimed that the country may have not fallen into this crisis, had the action points revealed in the manifesto released by the UNP during the 2019 Polls been implemented.
MIAP
Ready to take over Govt. Let us form Cabinet we like: AKD (VIDEO)
Leader of the Janatha Vimukthi Peramuna (JVP) MP Anura Kumara Dissanayake addressing a rally organised by the National People’s Power (NPP) in Anuradhapura yesterday (26) said they are ready to take over the government even tomorrow in order to solve the economic crisis befallen the country.
“The entire country is facing a huge crisis. The government does not seem to be having any plan or vision to solve this. Ranil Wickremesinghe is a numbed leader. He is a not a leader who feels for the pain of the people. If anyone thinks that the International Monetary Fund will come and save us, or the World Bank will come and save us, such a thing will not happen. When a country collapses, who should rebuild it? The people of that country!
We are ready to build this country. If Gotabaya and Ranil hand this over to us tomorrow, we are ready to take it over, we are ready to build this country. Keep in mind. We do not want anything else, just hand the government over to us. Let us form a Cabinet we like within Parliament. We can direct the country into an action that solves this problem. Therefore, we are ready to take it over,” he said.
MIAP
Fuel queues likely to exist for another year. Consumption must be slashed by 46 per cent: Subject Minister
The fuel consumption in Sri Lanka must be slashed from US $650 million to US $350 million, said Energy Minister Kanchana Wijesekara, speaking to a briefing yesterday (26).
“Now we are in a situation where no company is willing to provide us fuel without a prepaid facility. At a time when the country has to pay US $735 million, receiving more fuel from their companies has become a very difficult task. I believe that until at least one year from now when this financial management is done properly, we may not be able to resist the future occurrences of fuel queues. So we have to slash our consumption from US $650 million to US $350 million as a mandatory action. Reducing the consumption, we have to prioritise public transport, industries and essential special services,” he said.
MIAP
One dead, two injured in shooting at Kelaniya
One person was killed and a child and a woman was injured during a shooting at Pattiya Handiya, Kelaniya yesterday (26), Police said.
The injured were admitted to the hospital.
The victim who was killed during the shooting was a 31-year old resident in Minuwangoda. He was traveling on a motorcycle with his wife and two-year-old child when two men on another motorcycle came in and opened fire.
The child was admitted to the Lady Ridgeway Children’s Hospital, Borella and a bystander who was injured as she was walking nearby at the time of the shooting was admitted to the National Hospital, Colombo.
The Police revealed that the victim was a member of an organised crime gang and the reason for the assassination is yet to be revealed.
Further investigations are being conducted by the Peliyagoda Police.
MIAP
Dudley Sirisena to contest next Presidential Election?
Dudley Sirisena, the tycoon mill owner who is a brother of former President Maithripala Sirisena, is preparing to contest the next Presidential Election, sources disclosed.
Sirisena is reportedly preparing to contest the Presidential Polls as a common candidate and a meeting was held in this regard with a group of Buddhist monks at the Jaic Hilton Hotel, Colombo yesterday (25).
The business mogul recently pulled a stunt in front of the media calling in large-scale rice mill owners ‘mafia men,’ reportedly as part of his preparations to the Election.
MIAP
All Ceylon Private Bus Owners Association insists bus fares should be revised tomorrow
The bus fares should be increased in compliance with the revised fuel prices, said the All Ceylon Private Bus Owners Association, demanding the revision be made tomorrow (27) itself.
Speaking to media, Union President Anjana Priyanjith noted that the government should not be given any more days to proceed with such a revision and the bus fares, accordingly, shall be increased by 35 per cent, making the minimum bus fare Rs. 40.
The government should be taking the responsibility of private buses refraining themselves from operation, should it fail to implement the revisions, he added.
MIAP
Another circular on limiting the summoning of public servants to offices
The Secretary to the Public Administration Ministry has issued another circular limiting the summoning of public servants to their offices.
Previously, on June 17 a circular was issued restricting the summoning of public servants for a period of two weeks and the latest revision will be extending the action until due notice.
MIAP
Tokens to be issued to fuel queues from tomorrow. Availability to be informed over the phone
Steps will be taken to issue tokens to those queuing up for fuel from tomorrow (27) until the arrival of the next ship carrying fuel, said Energy Minister Kanchana Wijesekara, in view of the prevailing situation in the country.
He noted that these steps will be implemented as per a decision taken by the Security Council convened by the President and the Prime Minister.
Accordingly, anyone queuing up at fuel stations will be issued a token and their phone number will also be collected, Wijesekara went on, adding that the availability of fuel will be informed to them over the phone in accordance with the token number.
The Minister emphasised that these tokens will be in a unique and unchangeable manner at each fuel station. He urged the people not to queue up at stations with their tokens in possession, for they are being telephoned and informed of the fuel availability.
Wijesekara also expressed his regret over the current situation.
MIAP