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Sri Lanka’s Swift Economic Recovery from Bankruptcy Sets an Example for Crisis-Hit Nations

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September 21, Colombo (LNW): Former Finance Ministry Secretary Dr. R. H. S. Samaratunga announced yesterday that Sri Lanka’s rapid exit from bankruptcy, achieved through strategic debt restructuring within just two and a half years after an unprecedented economic crisis, stands as a model for other nations facing similar challenges.

The government has successfully restructured debt in three different ways, enabling the repayment of a total of US$ 84 billion. Additionally, Dr. Samaratunga highlighted that Sri Lanka has secured restructuring and concessions for debt amounting to US$ 17.5 billion.

To safeguard against future economic downturns, the former Secretary emphasized that the government has enacted five key legislative measures. The Central Bank of Sri Lanka Act was introduced to regulate money printing, while the Public Financial Management (PFM) Act of 2024 aims to prevent the misuse of public funds for political purposes.

The Fiscal Responsible Management Act has also been enacted to ensure disciplined fiscal policies. Moreover, the Public Debt Management (PDM) Act of 2024 was introduced to enforce strict guidelines for the government in managing credit facilities responsibly, irrespective of the political party in power.

Presidential Election Proceeds Peacefully Amid Tight Security Measures

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The Police Elections Bureau has reported that voting in the presidential election is proceeding smoothly and peacefully, with no incidents of violence reported so far. A comprehensive security program has been implemented nationwide to ensure the safety and integrity of the election process.

Police Spokesperson DIG Nihal Talduwa confirmed that nearly 63,000 police officers have been deployed for election duties, and no conflicts have been reported as of now. Additionally, the Ministry of Defense has deployed personnel from the three armed forces at key security locations across the island.

The Ministry has assured the public that armed forces are prepared to deploy additional personnel if necessary to maintain order and ensure the safety of voters and polling stations

Presidential Candidate Wijeyadasa Rajapakshe casts vote

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By: Isuru Parakrama

September 21, Colombo (LNW): Presidential Candidate of the National Democratic Front Wijeyadasa Rajapakshe has cast his vote for the 2024 Presidential Election this (21) morning.

Rajapakshe confirmed his vote in a livefeed published on his official Social Media platforms.

Presidential Candidate Sarath Fonseka casts vote

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By: Isuru Parakrama

September 21, Colombo (LNW): Presidential Candidate Field Marshal Sarath Fonseka has cast his vote for the 2024 Presidential Election at the Sri Sudarshanarama Viharaya in Kelaniya this (21) morning.

Fonseka confirmed his vote in a live footage released on Social Media.

Presidential Candidate Dilith Jayaweera casts vote

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By: Isuru Parakrama

September 21, Colombo (LNW): Presidential Candidate of the Sarwajana Balaya has cast his vote this (21) morning for the 2024 Presidential Election.

Jayaweera confirmed his vote in a Social Media post.

Presidential Candidate AKD casts vote in Panchikawatte

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By: Isuru Parakrama

September 21, Colombo (LNW): National Peoples Power (NPP) Presidential Candidate Anura Kumara Dissanayake has reportedly cast his vote at the polling station at the Saykoji Montessori in Panchikawatta.

Air China to begin daily flights to Sri Lanka aiming 1 million travellers

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Air China, one of China’s largest airlines, is set to launch daily flight operations to Sri Lanka, starting from October 2024 wooing more Chinese tourist to visit Sri Lanka. The announcement was made by former Tourism Minister Harin Fernando on X (formerly Twitter).

Sri Lanka Tourism is setting its sights on welcoming one million Chinese travellers over the next four years through the ‘China Project’.

Sri Lanka is crafting a new tourism strategy, aiming to build on a promising 2023 by honing its advertising message, wooing digital nomads and raising per-traveler revenue. It may even have a chance to capitalize on shifting geopolitical winds amid tensions between neighboring India and the Maldives.

The South Asian Island welcomed over 1.48 million visitors last year — roughly double that of 2022, when the country defaulted on sovereign debt, suffered severe shortages and saw protests topple the government. Buoyed by glowing tourism features in international magazines like Forbes and Conde Nast Traveler, the country is hoping for at least 2.3 million in 2024.

Sri Lanka is making an aggressive push to recapture the Chinese tourist market. Sri Lankan authorities have now encouraged countless Chinese trip specialists to visit the country, during a discussion had with a few Chinese journalists who visited Sri Lanka recently. 

Sri Lanka Tourism promotion bureau said that the Chinese market is one of the key markets which bring large number of tourists to the country each year. 

The airline’s move represents a significant increase in connectivity between the two nations, as Air China only recently resumed its flights to Sri Lanka, following a brief hiatus. 

In July 2024, the airline restarted its operations with three weekly flights from Chengdu Tianfu International Airport to Colombo’s Bandaranaike International Airport.

The inaugural flight on July 3, 2024, carried 142 passengers, marking the airline’s return to the island nation.

The decision to increase the frequency of flights is expected to provide a timely boost to air connectivity to further strengthen tourism and trade ties between both countries, with China emerging as one of Sri Lanka’s key tourism markets in recent months.

The provisional data from the Sri Lanka Tourism Development Authority showed that from January 01 to September 17, 2024, 92,566 tourists arrived from China. This makes China the fifth largest tourist traffic generator for the island nation.

As a member of the Star Alliance and one of the ‘Big Three’ airlines in mainland China, Air China has an extensive network of domestic and international routes through its operations primarily from Beijing Capital International Airport.

Headquartered in Beijing’s Shunyi District, the airline showcased its global prominence by transporting over 102 million passengers in 2017 alone.

S L’s Sovereign Debt Restructuring: A Crucial Step toward Economic Stability

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Sri Lanka’s announcement of reaching an agreement in principle to restructure approximately $17.5 billion of external commercial debt represents a critical milestone in the nation’s pursuit of financial stability. According to Murtaza Jafferjee, Chairman of the Advocata Institute and CEO of JB Securities, this agreement is a pivotal step toward achieving long-term debt sustainability and reshaping Sri Lanka’s economic future.

Jafferjee emphasized that this agreement has been a long time coming, reflecting on how the financial situation in the country had been deteriorating for years. He identified 2020 as the year when Sri Lanka shifted from a liquidity crisis to a solvency crisis, a perspective he had publicly advocated at the time. Despite his warnings, the country only began the debt restructuring process in April 2022, nearly two years later. This restructuring is seen as essential to resolving Sri Lanka’s financial issues.

While the recent agreement is a significant breakthrough, Jafferjee cautioned that Sri Lanka remains in selective default status. It will take several more months to finalize the restructuring, and only after that will the country be in a position to achieve an improved credit rating—ideally a triple C rating. He stressed the importance of achieving an investable credit rating to restore confidence among investors and fuel economic growth.

Debt sustainability, Jafferjee explained, is determined by factors like the debt-to-GDP ratio and the country’s gross financing needs, as assessed by the International Monetary Fund (IMF). According to IMF analysis, restructuring is necessary to make Sri Lanka’s debt manageable. He further warned against delaying the restructuring process, as continued delays would result in high-interest payments on the country’s international sovereign bonds, which currently range from 6.5% to 7%. With the new interest rate projected to be around 3%, delays are costly for the nation.

Looking ahead, Jafferjee noted that while the debt restructuring agreement is a major achievement, Sri Lanka must focus on enhancing its debt-carrying capacity by 2028, when much of the restructured debt will mature. Economic growth, along with increased investment, will be crucial in preventing future defaults and ensuring long-term stability.

Similarly, Professor Sirimal Abeyratne from the University of Colombo highlighted that the agreement marks a turning point in Sri Lanka’s economic history. He explained that lifting the restrictions on Sri Lanka’s access to international capital markets would help stabilize exchange rates and bolster the Central Bank’s foreign reserves. Moreover, the deal would pave the way for improving the country’s downgraded international credit ratings.

However, both Jafferjee and Abeyratne agree that this is only the beginning of Sri Lanka’s recovery journey. The country must continue to maintain economic stability and implement measures to reduce debt by 2030. For Sri Lanka to fully recover and avoid future crises, continuous economic growth, and disciplined financial management will be essential.

Colombo Plan’s Maritime Advisory Program Enhances Sri Lanka Ports Authority

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The Colombo Plan, a regional intergovernmental organization consisting of 28 member countries, has launched a three-year Maritime Advisory Program (MAP) aimed at building the capacity of the Sri Lanka Ports Authority (SLPA). 

The program seeks to address the complex maritime challenges faced by Sri Lanka, with a focus on improving maritime safety, security, and connectivity. Its ultimate goal is to foster collaboration and facilitate knowledge exchange to bolster the nation’s maritime sector.

The MAP program is designed to enhance the human resource capabilities of SLPA through professional training that aligns with global standards and best practices. Key activities within this initiative include port study-exchanges, capacity-building programs, and visits from international maritime experts to offer advisory support. 

The program receives funding from the U.S. Department of State’s Bureau of South and Central Asian Affairs, facilitated through the U.S. Embassy in Colombo.

As the only inter-governmental organization based in Sri Lanka, the Colombo Plan has been involved in various initiatives through its several divisions, including the Drug Advisory Programme (DAP), Gender Affairs Programme (GAP), Capacity Building Programme (CBP), and the Programme for Economic and Climate Change (ECC). 

The current MAP initiative represents a significant effort to bring the SLPA up to par with international maritime standards.

A collaboration between The Colombo Plan and the U.S. Department of Commerce’s Commercial Law Development Program (CLDP) recently led to the organization of a Public Private Partnerships (PPP) workshop for the port sector. 

The event was conducted by experts such as Wim Welvaarts, a senior port consultant from the Netherlands-based Rebel Group, and Rohan Masakorala, the lead consultant for the Colombo Plan Port of Colombo Capacity Building Project. The workshop emphasized the implementation of PPP systems at the Port of Colombo, aimed at strengthening and enhancing its operations.

The first major workshop under the MAP initiative, titled “Empowering Communications for Maritime Connectivity,” brought together various key figures including The Colombo Plan Secretary General Benjamin P. Reyes, Indo-Pacific Strategy Coordinator Dustin Bickel, Deputy Director for Security Assistance John Wise, and SLPA Chairman Keith Bernard. 

The event’s objective was to improve the communication capabilities and professionalism of SLPA executives, enabling them to better serve both international and local clients as Colombo develops into a major Asian maritime hub.

Additionally, SLPA delegates had the opportunity to engage in a study visit to the Port of Virginia Authority in Norfolk, U.S., as part of the program’s efforts to expand international maritime cooperation and enhance port management practices.

The communications workshop is an important focus area for SLPA as they engage with international and local clients in day-to-day maritime related work. The objective of the training session was to enhance capabilities and professionalism of the executive staff when dealing with global clients as a hub port in Asia to provide effective and efficient services

Election Commission Reports Surge in Complaints Ahead of Presidential Poll

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September 21, Colombo (LNW)The Election Commission has announced a significant increase in the number of complaints related to the 2024 Presidential Poll, with the total now reaching 5,551.

In the last 24 hours alone, 337 new complaints were reported, the majority—336—pertaining to violations of election laws.

The Commission confirmed that, to date, 4,929 of the total complaints have been resolved.