During the 10th World Water Summit, Presidents Ranil Wickremesinghe and Widodo reaffirm Sri Lanka-Indonesia ties: Discussions covered water management, economic cooperation, and regional security: Wickremesinghe praises Indonesia’s hydro diplomacy, while Widodo emphasises economic collaboration and vaccine market entry. discuss the Preferential Trade Agreement and Sri Lanka’s potential RCEP inclusion: express commitment to enhancing bilateral relations and global cooperation.
Opposition Leader Sajith Premadasa says corruption must be eradicated from society, with a system eliminating corruption being fostered by the government: adds the SJB is the only party which unmasked thieves without gaining power: stresses anti-corruption programmes should not be limited to ordinances but should be included in the Constitution, with an immutable mechanism being implemented.
The National People’s Power (NPP) and Opposition Leader Sajith Premadasa express condolences for the death of Iranian President Ebrahim Raisi, Foreign Minister Hossein Amir-Abdollahian, and other officials in a helicopter crash: They praise Raisi’s contributions to international relations, including his recent visits to Sri Lanka and Azerbaijan for hydropower projects: highlight Raisi’s commitment to fostering cooperation and development, and extend their thoughts and prayers to the families and the nation of Iran during this difficult time.
The State Intelligence Service is investigating four Sri Lankans arrested by the Gujarat Anti-Terrorist Squad at Ahmedabad Airport, suspected of ISIS links: SL intelligence is coordinating with Indian authorities to verify the suspects’ backgrounds and connections to ISIS: The suspects had travelled from Colombo to Chennai and then to Ahmedabad, where they were allegedly waiting for instructions from their handler: Security at the airport was heightened following their arrest, and encrypted messages were found on their phones: SL officials are closely monitoring the situation and collaborating with Indian counterparts.
Former Chairman of the Weligama Urban Council Rehan Jayawickrema files a contempt of court lawsuit against ex-State Minister Diana Gamage, accusing her of undermining the Supreme Court’s authority with statements made on 9 May: alleges Gamage’s remarks aimed to discredit the Court following its ruling on 8 May, which disqualified her from Parliament for not being a Sri Lankan citizen: Gamage is accused of portraying herself as a victim of injustice and depicting the Court’s decision as politically motivated, intending to undermine public perception of the judgment.
Acting Finance Minister Shehan Semasinghe announces two key bills, the “Economic Transformation Bill” and the “Public Financial Management Bill,” will be introduced in Parliament to bolster Sri Lanka’s economy: These bills aim to improve public financial management and prevent future economic crises, stemming from President Ranil Wickremesinghe’s vision rather than the IMF: The Economic Transformation Bill focuses on economic growth, international trade, and climate change, while the Public Financial Management Bill enhances accountability: also target reducing public debt and improving debt servicing to ensure economic stability and sustainable growth.
In response to the rainy season, the government instructs officials to take immediate actions to mitigate dengue risk in Colombo: President’s Senior Advisor Sagala Ratnayaka recommends an awareness programme for schoolchildren and parents, to be implemented during ‘Dengue Prevention Week’ from May 26 to June 1 by the Ministry of Education: emphasises reducing dengue risks around public institutions and construction sites, and enforcing regulations against non-compliance.
Agnès Callamard, Secretary General of human rights watchdog Amnesty International, concludes a five-day visit to Sri Lanka, addressing human rights issues: highlights ongoing challenges 15 years post-civil war, emphasising the need to tackle impunity, discrimination, and suppression of freedoms: expresses concerns about new laws threatening civil society, arbitrary arrests, and lack of accountability for past violations: urges political leaders to foster reconciliation and justice, particularly with the upcoming elections and proposed Truth and Reconciliation Commission: Her visit included meetings with President Wickremesinghe, families of the disappeared, and various community representatives.
Central Bank data shows Sri Lanka’s credit card industry is set to gain momentum as ceiling rates are revised downward alongside falling lending rates: Despite a decline in new card issuance, transaction volume and value have slightly increased: Credit card activity, which had been stagnant, is now increasing due to consumer spending on festivities, leisure, and travel: However, excessive spending may lead to higher outstanding balances and interest payments: The outstanding credit card balance rose modestly in March, indicating growing consumer optimism: The CB is expected to lower credit card interest rates, currently at 28%, to align with falling loan rates.
Indika Gamage wins a bronze medal in the T-44 100 metres at the World Para Athletic Championship in Kobe, Japan, with a time of 11.83 seconds, qualifying for the Paris Paralympics: South African Mpumelelo Mhlongo won gold, and Malaysian Eddy Bernard took silver. Gamage, coached by Y. K. Kularatne, achieved his best time despite a poor start: He is set to compete in the T-44 long jump next: Additionally, Samitha Dulan will compete in the men’s Javelin Throw F-44 final, having already qualified for the Paris Paralympics.
May 21, Colombo (LNW): Sri Lanka government authorities and the IMF have discussed some counterproposal options would have already been discussed with the IMF, which could provide the IMF executive board some space to take a more lenient view of ‘adequate progress’ on debt restructuring.
Deal likely to be reached before next presidential elections in September, but unclear whether it will happen before the next IMF review expected in June
This was highlighted in note by Baqar Zaidi, Assistant to Vice President at Citi, and Citi’s Global Head of Emerging Market Economics, Johanna Chua recently.
Sri Lanka’s dollar bonds have room to rise, even as doubt remains over whether the nation can strike a debt restructuring deal before its next review with the International Monetary Fund, according to Citi.
“We think bonds have upside from current level,” analysts at the bank led by Baqar Zaidi and Johanna Chua wrote in a note
Citi expects final recovery value on bonds to be somewhere between the mid-50 cents on the dollar, based on the government’s proposal, and high 70s cents on the dollar from the bondholder offer.
“Sri Lanka’s proposal serves as a benchmark for market prices from here onwards, and the potential for upside in order to compromise with the bondholder negotiating group is substantial,” according to Citi.
With Sri Lanka achieving much-needed stability, Citi’s Global Head of Emerging Market Economics, Johanna Chua last week stressed the importance of focusing on growth-enhancing reforms if the country were to overcome ongoing challenges.
She said such a course is essential to boost private sector investment. Growth enhancing reforms also includes further opening up of Sri Lanka and its markets, she added. “Stability was essential even though it came at a cost.
Then there is also an issue of whether people feel it (stability). For this, and given the traditional weaknesses in the economy, the country needs to generate growth,” she added.
“There is a re-rating story in Sri Lanka. There is a lot of opportunity provided Sri Lanka continues on the reforms path as well as growth. Sri Lanka cannot afford to remain as a setback nation.
The best balance is to build stabilisation with growth enhancing reforms so that you can continue both, she said.
Chua was in Sri Lanka along with a group of Citi’s clients cum investors from Europe, Middle East and Asia whom she said are upbeat too. Some of the investors include holders of Sri Lanka’s International Sovereign Bonds (ISBs) who according to Chua were also exploring opportunities in local Government bonds.
“Investors are seeing a lot of growth opportunities in Sri Lanka. There’s so much potential. If the economy can grow fast, especially on a sustainable basis, then there will be an inflow of investments and funds,” Citi’s Global Head of Emerging Market Economics emphasised.
May 21, Colombo (LNW): The National People’s Power (NPP) and Opposition Leader Sajith Premadasa have expressed their heartfelt condolences following the tragic demise of Iranian President Ebrahim Raisi, Foreign Minister Hossein Amir-Abdollahian, and other Iranian officials in a fatal helicopter accident.
In a statement, the NPP conveyed, “Our thoughts and prayers are with the families and friends of the departed, as well as the entire nation of Iran during this difficult time.”
The NPP highlighted that President Raisi’s loss is not only significant for Iran and the Middle East but also for the global community.
“President Raisi tirelessly worked to strengthen friendly and non-hegemonic relations with numerous countries, including Sri Lanka. His recent visit to Sri Lanka to inaugurate a hydropower project, funded by the Iranian people, stands as a testament to his unwavering commitment to international cooperation and sustainable development. Furthermore, his final trip to Azerbaijan to inaugurate a similar project underscores his steadfast dedication to fostering regional collaboration and promoting mutual prosperity,” the statement read.
The NPP added that President Raisi’s legacy of fostering cooperation, development, and friendly relations will undoubtedly inspire the Iranian people to continue his mission, ensuring progress and stability within Iran and throughout the Middle East.
Opposition Leader Sajith Premadasa also issued a statement expressing his condolences. He remarked that President Raisi’s untimely passing represents a significant loss not just for the people of Iran but for the entire region.
“Iran has lost a true statesman. While the people of Iran have endured much in their long and illustrious history, the loss of His Excellency the President will require steadfast leadership from the Supreme Leader of the Islamic Republic of Iran. I have no doubt he shall provide the necessary guidance for a country and people in mourning,” Premadasa said.
Premadasa further noted President Raisi’s recent visit to Sri Lanka, stating that the Sri Lankan people were able to experience the warmth and presence of the late President.
“Our thoughts and prayers are with his family, colleagues, and the people of Iran during this period of immense grief and sorrow. May the people of Iran find solace in his enduring legacy, which leaves an indelible mark on the history of the people of Persia,” he concluded.
Both opposition parties in Sri Lanka underscored Raisi’s contributions to international relations and development, reaffirming their solidarity with the Iranian people during this time of profound loss.
May 21, Colombo (LNW): The Sri Lankan Rupee (LKR) happens to indicate steadiness against the US Dollar today (21) in comparison to yesterday, as per leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 294.19 from Rs. 294.24, and the selling price to Rs. 304.15 from Rs. 304.20.
At Commercial Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 293.33 and Rs. 303.50, respectively.
Sampath Bank also follows a similar with having the buying and selling rates of the US Dollar unchanged at Rs. 295 and Rs. 304, respectively.
May 21, Colombo (LNW): A contempt of court application has been submitted to the Supreme Court against former State Minister Diana Gamage, accusing her of contempt of court due to statements made at a briefing on 9 May this year.
Rehan Jayawickrema, the former Chairman of the Weligama Urban Council, filed this application, alleging that Gamage’s statements were intended to bring the Supreme Court’s authority into disrepute, as stipulated under Section 3(1)(a) of the Contempt of Court, Tribunal, or Institution Act No. 8 of 2024.
In a landmark judgment on 8 May, the Supreme Court ruled that then State Minister Diana Gamage was disqualified from serving as a Member of Parliament as she is not a citizen of Sri Lanka.
The petitioner claimed Gamage depicted herself as a victim of injustice during the briefing in which took participation.
She allegedly stated that the Supreme Court’s decision was an attack on women and a political conspiracy driven by hate and vengeance.
Gamage made these statements with the malicious intent of undermining the Supreme Court’s judgment in the public’s perception, portraying herself as a victim of wrongdoing and the court’s decision as unjust, Jayawickrema asserted.
May 21, Colombo (LNW): Sri Lanka’s State Intelligence Service has initiated an immediate investigation into four Sri Lankan individuals alleged to be ISIS suspects, who were arrested by the Gujarat Anti-Terrorist Squad (ATS) upon their arrival at Ahmedabad Airport, Daily Mirror reported.
Senior defence officials have confirmed that Sri Lanka’s state intelligence has requested further information from their Indian counterparts to verify the background of the suspects and determine any connections to the ISIS network.
Upon receiving this information, Sri Lankan authorities plan to conduct a thorough investigation and take appropriate actions.
Preliminary reports indicate that the suspects departed Colombo a few days ago, travelled to Chennai, and subsequently proceeded to Ahmedabad.
Security measures at Sardar Vallabhbhai Patel International Airport in Ahmedabad were intensified following the arrests, according to Indian media.
The Gujarat ATS apprehended the suspects while they were allegedly awaiting instructions from their handler, who was expected to assign them specific tasks.
Encrypted messages were recovered from their phones, and they were detained before reaching their intended destination, reports added.
They are closely monitoring the situation, the Daily Mirror report added, citing comments from Public Security Minister Tiran Alles and Inspector General of Police (IGP) Deshabandu Tennakoon.
The two emphasised their commitment to collaborating with Indian authorities to gather comprehensive information about the suspects and their activities.
The Gujarat ATS has reportedly taken the suspects to an undisclosed location for intensive questioning.
The exact motive and intentions behind their presence at Ahmedabad Airport remain unclear.
May 21, Colombo (LNW): Sri Lanka exemplifies a nation at the intersection of climate change and biodiversity loss, activists claim.
Ranked among the top ten most climate-vulnerable countries, Sri Lanka incurs an average of US$313 million in annual disaster losses due to acute climate vulnerability.
The country’s unique biodiversity is also in decline, with 27 per cent of bird species, 66 per cent of amphibians, 56 per cent of mammals, 49 per cent of freshwater fish, and 59 per cent of reptiles under threat.
The iconic elephant population is decreasing, and among flowering plants, 1,385 of 3,154 species are classified as threatened, with 594 endemic to Sri Lanka.
From 2001 to 2023, the country lost 222,000 hectares of tree cover, a 5.6 per cent decrease since 2000.
According to the United Nations Development Programme (UNDP), wildlife populations have declined by almost 70 per cent since 1970, with wild mammals representing just 4 per cent of the global mammal biomass by 2015.
Despite 60 per cent of global GDP being dependent on natural resources, resource extraction and processing are responsible for over 90 per cent of global biodiversity loss.
The world faces the dual crises of catastrophic nature loss and climate change, severely impacting key planetary boundaries.
In the face of shrinking resources and the economic crisis, a 2018 Finance Needs Assessment by the Biodiversity Financing Initiative (BIOFIN) indicated that Sri Lanka would need approximately Rs. 31 billion (US$ 190 million) between 2018 and 2024, assuming current investment levels are maintained.
The Climate Prosperity Plan, submitted as the country’s long-term low GHG emission strategy, requires US$ 26 billion or US$ 6.5 billion per year for successful climate change mitigation and adaptation.
Against this backdrop, the 2024 International Day for Biological Diversity calls for urgent action with the theme “Be Part of the Plan.”
The current state of affairs demands bold, imaginative, and ambitious solutions to halt and reverse biodiversity loss and to mobilise resources for countries like Sri Lanka to meet their biodiversity targets.
Initiatives such as BIOFIN, a UNDP-managed global collaborative partnership, aim to bridge the financing gap by mobilising innovative financing for biodiversity investments.
The National Sustainable Tourism Certification Scheme, one of BIOFIN’s 16 financial solutions for Sri Lanka, has successfully mobilised over Rs. 500 million for sustainable tourism.
Additionally, UNDP’s Nature Pledge commits to accelerated and upscaled support for over 140 countries to achieve their targets under the Global Biodiversity Framework.
BIOFIN also supported the Central Bank of Sri Lanka (CBSL) in initiating the Sustainable Finance Roadmap to promote sustainable financing among commercial banks.
May 21, Colombo (LNW): Two significant bills aimed at bolstering the country’s economy will be introduced in Parliament tomorrow (22), announced Acting Finance Minister Shehan Semasinghe.
The “Economic Transformation Bill” and the “Public Financial Management Bill” are designed to enhance the management of public finances, thereby providing a safeguard against future economic downturns.
Speaking at a briefing, Semasinghe emphasised that the legislation originates from the vision of President Ranil Wickremesinghe, rather than being proposed by the International Monetary Fund (IMF).
The new legislation will focus on preserving economic stability and ensuring optimal levels of public financial management to prevent future economic crises, he noted.
The “Public Financial Management Bill” will specifically aim to enhance accountability in managing public finances, aligning with the IMF programme’s requirements, the Minister further explained.
These bills contain numerous technical elements aimed at bolstering confidence in the economy and maintaining the trajectory of the new economic direction implemented thus far.
The Economic Transformation Bill is particularly crucial for the country’s economic growth.
Despite experiencing economic contraction in the second and third quarters of 2023, a notable growth rate of 4.5 per cent was achieved in the fourth quarter.
The bill also addresses essential reforms for international trade, trade agreements, and climate change mitigation efforts.
The legislation outlines the establishment of a new Economic Commission in Sri Lanka, aimed at attracting investments to enhance competitiveness, fostering a conducive environment for investors, expanding international trade, establishing the National Productivity Commission, and developing export-related institutions.
Recently, Parliament endorsed decisions regarding economic transformation. In 2022, the public debt ratio stood at 128 per cent, a figure projected to decrease to less than 95 per cent by 2032.
Similarly, the fiscal requirement, which was 34.6 per cent of the gross domestic product in 2022, aims to be lowered to below 13 per cent by 2032.
Effective debt servicing is paramount, with efforts focused on establishing Sri Lanka as a debt-sustainable nation capable of meeting its obligations.
The goal is to reduce the debt payment ratio from 9.4 per cent in 2022 to below 4.5 per cent by 2027.
The proposed bill will outline specific national goals and actions to address economic challenges, providing a roadmap for sustainable economic growth, debt management, and economic governance.
May 21, Colombo (LNW): In response to the onset of the rainy season, the government has directed relevant officials to take immediate measures to mitigate the risk of dengue in Colombo.
Sagala Ratnayaka, Senior Advisor to the President on National Security and Chief of Presidential Staff, has recommended the development of a special awareness programme aimed at educating schoolchildren and parents.
This initiative will be implemented by the Ministry of Education during ‘Dengue Prevention Week,’ scheduled from May 26 to June 1.
Ratnayaka also instructed authorities to focus on reducing the risk of dengue around public institutions, religious sites, and new construction areas.
He emphasised the necessity for relevant departments to enforce regulations against those failing to comply with these preventive measures.
These directives were issued during a progress review meeting held on Monday (20), at the Presidential Secretariat.
The meeting, chaired by State Minister for Defence Pramitha Bandara Tennakoon, included Senior Advisor to the President on National Security and Chief of Staff to the President Sagala Ratnayaka, and Chief of Defence Staff General Shavendra Silva.
The meeting aimed to review the implementation and progress of decisions taken in a previous session.
Discussions focused extensively on the measures previously implemented to control the spread of dengue and their effectiveness, particularly within the health medical officer divisions in the Western Province, where a rise in dengue cases has been noted.
Dr. Palitha Mahipala, Secretary to the Ministry of Health, commended Ratnayaka for his leadership and guidance in the dengue control efforts and assured the Ministry of Health’s full support for the programme.
May 20, Colombo (LNW): During the 10th World Water Summit, President Ranil Wickremesinghe and Indonesian President Joko Widodo reaffirmed their commitment to strengthening the longstanding relationship between Sri Lanka and Indonesia.
The discussions covered a wide range of regional and international issues, underscoring the importance of collaboration in addressing global challenges, according to the President’s Media Division (PMD).
President Wickremesinghe opened the meeting by highlighting the historical ties between Sri Lanka and Indonesia, which date back to their joint participation in the 1956 Bandung Conference.
He expressed appreciation for President Widodo’s leadership in regional, international, and bilateral matters, noting the importance of such summits in fostering global cooperation.
A major topic of discussion was the critical issue of water management. President Wickremesinghe emphasised the importance of the World Water Summit and expressed Sri Lanka’s willingness to participate in the Global Blended Financial Alliance, an initiative aimed at addressing common financial challenges faced by countries in managing water resources.
He commended Indonesia for establishing a Secretariat for the Alliance, recognising its significance for Sri Lanka.
President Widodo, in his remarks, focused on economic cooperation between the two countries.
He stressed the need to finalise the Preferential Trade Agreement (PTA) by the first quarter of 2025 to enhance economic ties.
Additionally, he highlighted Indonesia’s interest in entering the Sri Lankan vaccine market through Indonesian pharmaceutical companies and called for the lifting of import restrictions on Indonesian palm oil and related products.
The Indonesian President also showcased Indonesia’s advancements in renewable energy, specifically the country’s largest floating solar power project.
He emphasised the importance of hydro diplomacy and political leadership in achieving sustainable water management and development goals.
Furthermore, he welcomed Sri Lanka’s leadership in the Indian Ocean Rim Association and its aspirations to become a sectoral dialogue partner.
President Wickremesinghe reiterated the importance of completing the PTA by early 2025, noting Sri Lanka’s existing free trade agreements with India and Singapore, and ongoing negotiations with Thailand, Bangladesh, and Malaysia.
He emphasised the potential benefits of joining the Regional Comprehensive Economic Partnership (RCEP), suggesting that Sri Lanka’s inclusion could encourage other South Asian countries to follow suit.
He also mentioned the ongoing removal of import restrictions and assured that Sri Lankan health authorities would address the entry of Indonesian pharmaceuticals into the market.
The discussion also touched upon regional security and economic cooperation in the Indian Ocean.
President Wickremesinghe supported ASEAN’s Indo-Pacific outlook and stressed the need for closer bilateral and regional cooperation regarding Indian Ocean affairs.
He proposed more frequent meetings between heads of government and a specific bilateral agreement with Indonesia to enhance commercial collaboration in the region.
President Widodo thanked Sri Lanka for co-sponsoring the Global Blended Financial Alliance, emphasising its role in achieving sustainable development goals.
He called for continued collaboration between relevant ministries from both countries to support this initiative.
Looking ahead, President Widodo mentioned the upcoming presidential transition in Indonesia and expressed hope that the new administration would continue to strengthen ties with Sri Lanka.
In conclusion, President Wickremesinghe expressed his eagerness to work with Indonesia’s new leadership and extended a personal invitation to President Widodo to visit Sri Lanka after his term ends in October.
Both leaders reaffirmed their commitment to enhancing bilateral relations and addressing shared global challenges through continued cooperation.
