By: Staff Writer

July 28, Colombo (LNW): Central Bank expressed optimism this week about the imminent conclusion of all types of debt restructuring and the start of debt repayment, which he believes will remove Sri Lanka from its ‘default’ status assigned by global rating agencies.

Although different rating agencies have various methods for assessing sovereign credit ratings, this move is expected to restore Sri Lanka’s access to international capital markets for further borrowing, Governor of the CB Nandalal Weerasinghe said.

“The basic principle is for a sovereign to return to a normal repayment schedule after debt restructuring, which will effectively remove the ‘default’ label, he claimed adding that .he is  confident we will achieve this soon,.

He was speaking ar a media briefing following the monetary policy meeting on Wednesday.Following the government’s debt agreements with bilateral creditors in June, Sri Lanka gained access to bilateral credit. For example, Japan, one of Sri Lanka’s largest bilateral creditors, resumed development funding this week.

Sri Lanka is anticipated to receive up to $75 million from Japan in the next few weeks, with a commitment to access $1.1 billion over the next six years.

Similarly, after the Sri Lankan government and bondholders agreed in principle to restructure about $12.5 billion in defaulted bonds, pending approval from bilateral creditors and the International Monetary Fund, there is hope that Sri Lanka’s credit rating will improve.

Sri Lanka’s sovereign credit rating was downgraded to restrictive default and selective default status after the country declared it would default on most foreign currency liabilities in April 2022. This decision was made by the current Central Bank Governor and Treasury Secretary.

As Sri Lanka nears the completion of bondholder debt deals with generally favorable terms, rating agencies might lift the country out of default statuses, thereby restoring confidence in lending to Sri Lanka.

Rating agencies had been gradually downgrading Sri Lanka’s sovereign ratings since December 2019, as the previous government did not follow policies in line with the agencies’ expectations. Additionally, these agencies were unaware of the significant impact that unforeseen events, such as pandemics, could have on small economies like Sri Lanka.

Following the completion of three critical steps in its debt restructuring—finalising Domestic Debt Optimisation (DDO), signing agreements with the Official Creditor Committee and China Exim Bank, and reaching consensus with bondholders—Sri Lanka is now on track for a potential rating upgrade, Finance State Minister Shehan Semasinghe said.

He emphasised that while the next goal is a rating upgrade, the country must work diligently to achieve this and move past its current default status.

1. President Ranil Wickremesinghe emphasises his commitment to tackling challenges and advancing the nation: Attended by over 50 ministers, parliamentarians, and more than 15,000 residents to the “Ekwa Jaya Gamu – Api Galle” rally, the event focused on the government’s agenda and the importance of adhering to the IMF programme: Calls for political unity were also made.
   
2. Opposition Leader Sajith Premadasa challenges Prime Minister Dinesh Gunawardena and President Ranil Wickremesinghe to declare defiance to the Supreme Court’s ruling barring the appointment of IGP Deshabandu Tennakoon outside the Chambers, without hiding behind parliamentary privileges: warns they will be facing the charge of contempt of court, should they announce the government’s decision to not accept the Supreme Court ruling.
   
3. Former President Mahinda Rajapaksa says he is ready to comply with any decision taken by his party Sri Lanka Podujana Peramuna (SLPP) regarding the presidential candidate for the upcoming polls.
   
4. The Department of Government Printing has completed the initial printing tasks for the upcoming Presidential Election and handed all required documents to the Election Commission: Materials for nominations and bond deposits are finalised, and a gazette notification has appointed District Secretaries as District Returning Officers: Government Printer Ganga Kalpani Liyanage confirms all election-related printing is on schedule.
   
5. The European Union Council extends the ban on the Liberation Tigers of Tamil Eelam (LTTE) for another six months, announced on 26 July 2024: This measure, under Common Position 2001/931/CFSP, includes asset freezes and economic restrictions on individuals and groups linked to the LTTE, prohibiting EU entities from providing them with economic resources.
   
6. C.P. Athaluwage, Chairman of the Road Development Authority (RDA), resigns due to what he described as “excessive interference” from the Ministry of Transport and Highways: cites persistent interference from the Ministry’s Secretary, which affected RDA’s operations over the past four and a half years: Despite efforts to maintain transparency, he steps down, citing the Secretary’s arbitrary actions.
   
7. The Bar Association of Sri Lanka (BASL) asserts Supreme Court rulings cannot be overridden by any entity, including the Prime Minister or Speaker: Condemning government attempts to undermine the Court’s decisions on IGP Deshabandu Tennakoon’s appointment, the BASL affirmed the Court’s authority over presidential nominations: emphasises the Supreme Court’s jurisdiction and expressed confidence in the judiciary’s integrity, with hearings set for November 11, 2024.
   
8. As part of its Naval Social Responsibility project, the Sri Lanka Navy inaugurates two new Reverse Osmosis (RO) plants in Palugaswewa and Kekirawa, Anuradhapura: Guided by Vice Admiral Priyantha Perera, the Navy installed these plants to provide safe drinking water to Kumbukwewa and Shasthraweli villages, supported by the Ministry of Health and Presidential Secretariat funding.
   
9. A Police constable in Kollupitiya has been suspended for allegedly attempting to plant cannabis in a car during a traffic stop: A widely shared mobile phone video shows passengers accusing the officer of extortion: The constable, found chewing betel and improperly conducting the search, was suspended following an inquiry: Kollupitiya Police continue to investigate.
   
10. India triumphed over Sri Lanka by 43 runs in the first T20I held in Pallekele: India posted a formidable 213/7, driven by Suryakumar Yadav’s 58 and Rishabh Pant’s 49: Despite Pathum Nissanka’s valiant 79, Sri Lanka was all out for 170: Matheesha Pathirana took 4/40, while Riyan Parag’s 3/5 secured the win for India.

July 28, Colombo (LNW): An incident involving MP M.A. Sumanthiran’s car and a motorcycle occurred yesterday evening.

Police reported that the collision happened near the 155 km marker in Kilinochchi as the MP’s vehicle was en route from Colombo to Jaffna.

Fortunately, there were no injuries, though the front of the MP’s car sustained minor damage.

The Kilinochchi Police are conducting an investigation into the matter.

July 28, Colombo (LNW): The Bar Association of Sri Lanka (BASL) asserted today that Supreme Court rulings cannot be overruled by any other entity, including the Prime Minister or the Speaker.

In a strongly worded statement, the BASL condemned government efforts to undermine the Supreme Court’s interim decisions regarding the appointment of Inspector General of Police (IGP) Deshabandu Tennakoon.

They refuted claims that the Supreme Court lacks authority over nominations made by the President and approved by the Constitutional Council.

The BASL highlighted that the Constitutional Council’s decisions fall under the Supreme Court’s Fundamental Rights Jurisdiction as per Article 41J of the Constitution.

Following the 19th Amendment, the President’s powers, apart from declaring war and peace, are subject to the Supreme Court’s jurisdiction under Article 35.

The statement noted that the Supreme Court has previously annulled presidential pardons, overturned the dissolution of Parliament, and ruled against the President concerning the Easter Sunday attacks.

The BASL emphasised that a three-judge bench heard arguments from all parties, including the Attorney General and counsel for IGP Deshabandu Tennakoon, and issued an interim order restraining Tennakoon from performing the duties of Inspector General of Police until the case is resolved.

The hearings are scheduled for November 11, 2024.

The BASL expressed its unwavering confidence in Sri Lanka’s judiciary, including the Supreme Court, and pledged to support the judiciary to maintain its integrity during this critical period.

This statement was signed by BASL Secretary Chathura Galhena.

July 28, Colombo (LNW): As part of its Naval Social Responsibility project, the Sri Lanka Navy inaugurated two new Reverse Osmosis (RO) plants in Palugaswewa and Kekirawa, Anuradhapura, on 26th July 2024.

Under the guidance of Vice Admiral Priyantha Perera, the Navy utilised its manpower and technical expertise to install these RO plants, marking the 1020th and 1021st projects of this nature.

These installations, located in the villages of Kumbukwewa and Shasthraweli, address a significant need for safe drinking water.

The projects were executed with the support of the Ministry of Health and funding from the Presidential Secretariat.

The new facilities are expected to provide reliable access to clean drinking water for the residents of these villages.

Reverse osmosis is a water purification process that removes ions, unwanted molecules and larger particles from drinking water using a partially permeable membrane.

July 28, Colombo (LNW): A Police constable has reportedly been suspended following allegations of attempting to plant cannabis in a vehicle during a traffic stop in Kollupitiya.

The constable reportedly stopped a car from the Grandpass area, with several men inside, and allegedly tried to place cannabis in the vehicle.

A video of the incident, recorded on a mobile phone and spread widely on social media, led to a police investigation.

The footage reveals that the passengers are accusing the officer of trying to extort money by planting the cannabis.

The constable was suspended after an inquiry, which also revealed he was chewing betel while in uniform and conducted the search improperly without the presence of the driver or passengers, a report by Lankadeepa revealed.

Kollupitiya Police are continuing their investigation into the matter.

July 28, Colombo (LNW): C.P. Athaluwage, Chairman of the Road Development Authority (RDA), has resigned, citing ‘excessive interference’ from the Ministry as the main reason.

He submitted his resignation letter to the President’s Secretary and informed Minister of Transport Bandula Gunawardena.

In his resignation, Athaluwage highlighted that ongoing interference from the Secretary of the Ministry of Transport and Highways had severely affected the RDA’s administrative functions.

He noted that this issue had been persistent, with direct influence on the RDA’s operations over the past four and a half years.

Despite working transparently with the Board of Directors to uphold the RDA’s integrity and benefit its employees, Athaluwage expressed his reluctance to continue under an official who engages in arbitrary actions.

Consequently, he stepped down from his position as Chairman, effective 27 July.

July 28, Colombo (LNW): The Department of Government Printing has announced the completion of initial printing tasks for the forthcoming Presidential Election, with all required documents handed over to the Election Commission.

The department confirmed that the materials for nominations and bond deposits have been finalised.

Furthermore, a gazette notification has been issued appointing the District Secretaries as the District Returning Officers for each district.

Government Printer Ganga Kalpani Liyanage affirmed that all election-related printing activities are progressing as planned, ensuring readiness for the upcoming poll.

July 28, Colombo (LNW): The Ministry of Foreign Affairs has confirmed that the European Union (EU) Council has extended the ban on the Liberation Tigers of Tamil Eelam (LTTE) for another six months.

The renewal, announced on 26 July 2024, is part of ongoing measures to combat terrorism under the Common Position 2001/931/CFSP.

Consequently, individuals and groups linked to the LTTE will continue to face asset freezes and restrictions within EU member states, and EU entities are prohibited from providing economic resources to the proscribed organisations.