June 27, Colombo (LNW): The Samagi Jana Balawegaya (SJB) has raised concerns regarding the government’s decision to develop wind power stations in Mannar and Pooneryn in partnership with India’s Adani Green Energy Limited.

At a recent briefing, former SJB MP Ajith P. Perera accused the government, particularly President Ranil Wickremesinghe and Minister of Power and Energy Kanchana Wijesekera, of engaging in large-scale financial malpractice by granting the wind power project to Adani Green Energy.

Perera highlighted that the government had agreed to purchase power at $0.0826 per KW from the proposed wind power stations to be developed by Adani Green Energy.

He criticised the decision, stating that the project had been awarded without a competitive tender process, resulting in a projected loss of millions of dollars for Sri Lanka over the next 20 years.

In support of his claims, Perera noted that WindForce PLC, which holds a 100% stake in Hiruras Power (Pvt) Ltd, had proposed a wind power project at nearly half the cost quoted by Adani.

WindForce PLC had won a tender from the Ceylon Electricity Board (CEB) to build a 50 MW wind power station in Mannar, offering electricity at $0.0488 per KW.

Perera concluded by asserting that the government’s decision to proceed with Adani Green Energy’s more expensive proposal constitutes a significant financial fraud, potentially costing Sri Lanka over a billion US dollars.

June 27, Colombo (LNW): President Ranil Wickremesinghe has declared that the nation has finalised agreements for restructuring its external debt with bilateral creditors, in what he described as ‘a significant milestone’ in Sri Lanka’s recent history.

In his special address yesterday (26), Wickremesinghe highlighted the positive outcomes of the government’s diligent efforts, revealing that Sri Lanka has secured a final restructuring agreement for US$ 5.8 billion of debt with its bilateral lenders’ Official Creditor Committee in Paris.

Additionally, a debt treatment agreement has been signed with the Export-Import Bank of China in Beijing to restructure US$ 4.2 billion of debt.

The President affirmed that all necessary formalities are currently being implemented. He expressed optimism, stating, “For those who truly care about our country, this is excellent news. Sri Lanka has triumphed.”

President Wickremesinghe emphasised that these agreements enhance international confidence in Sri Lanka, describing them as an endorsement of the nation’s credibility. “The global community, which previously refused to accept our letters of credit, is now willing to vouch for us,” he noted.

Further, he announced that Prime Minister Dinesh Gunawardena will present these agreements to Parliament on 2nd July, urging all patriotic members to support their ratification.

He also underscored that the nation’s economic issues cannot be resolved through strikes or threats but through united efforts to strengthen the economy.

The President detailed the benefits of the debt restructuring agreements, including the postponement of bilateral loan payments until 2028 and the extension of repayment terms until 2043.

He noted that Sri Lanka had allocated 9.2 cent of its GDP to foreign debt payments in 2022, but this figure is expected to drop to less than 4.5 per cent between 2027 and 2032, marking a significant fiscal improvement.

President Wickremesinghe also reflected on the challenging journey since the country’s declaration of its inability to repay loans in 2022, which led to the suspension of foreign-funded projects and international transactions.

He highlighted that the successful debt restructuring now allows for the resumption of these projects and transactions.

Expressing gratitude to all parties involved, including ministers, officials, and the majority of citizens who supported the government’s efforts, President Wickremesinghe criticised those attempting to disrupt the country’s progress.

He assured that continued economic improvement would provide relief to the people and called for unity in strengthening the economy.

The President concluded by reaffirming his commitment to rebuilding the economy through planned policies, dedication, and international support, expressing confidence in Sri Lanka’s ability to achieve a developed economy by 2048.

June 27, Colombo (LNW): The Grama Niladhari Trade Union Alliance (GNTUA) has commenced a three-day strike, suspending their duties to protest the prolonged delay in addressing their demands.

The co-conveners of the alliance expressed frustration, noting that the government had swiftly resolved issues concerning administrative officers, while their own concerns have remained unaddressed for years.

“Our alliance has been discussing these issues for years, but solutions to our problems are continuously delayed,” they stated.

In response, the GNTUA began their strike on 26 June and will continue through 28 June.

The alliance has also decided not to work on weekends and special government holidays.

“If the government does not respond to our demands, the alliance will continue their strike at the district level,” they warned.

June 27, Colombo (LNW): The teacher-principal trade unions persist with their strike action today (27 June), in response to the use of tear gas and water cannons by police to disperse their protest march in Colombo yesterday (26).

The unions initiated an island-wide trade union action by reporting sick leave on 26 June to press several demands.

Concurrently, members launched a protest in Colombo, beginning near the Colombo Fort Railway Station.

Police employed tear gas and water cannons to disperse the protesters near the Lotus Roundabout in Fort as they attempted to march towards the Presidential Secretariat.

The strike significantly disrupted educational activities across schools nationwide.

Many schools saw notably low attendance, with some students having to return home as they could not enter the premises.

Despite the ongoing strike, the Education Ministry confirmed that all government schools will operate as usual today (27).

June 27, Colombo (LNW): India has expressed its approval of Sri Lanka’s debt restructuring agreement with a coalition of creditor nations and reaffirmed its commitment to supporting the island nation’s economic recovery through long-term investments, the Press Trust of India (PTI) reported.

As a co-chair of the Official Creditors Committee (OCC), established in April last year to devise a debt restructuring plan for Sri Lanka, India played a crucial role in finalising the agreement.

The Sri Lankan government announced it had secured a long-awaited debt restructuring deal worth USD 5.8 billion with its bilateral lenders, including India and China.

India’s Ministry of External Affairs (MEA) stated that after multiple rounds of negotiations, the OCC signed a Memorandum of Understanding (MoU) on debt restructuring on June 26.

The MEA highlighted that this significant achievement underscores Sri Lanka’s progress in stabilising its economy and advancing towards reform and growth.

“As a co-chair of the OCC, alongside France and Japan, India has remained steadfast in its commitment to the stabilisation, recovery, and growth of the Sri Lankan economy,” the MEA said.

“This commitment was further demonstrated by India’s unprecedented financial support of USD 4 billion to Sri Lanka. India was also the first creditor nation to provide financing assurances to the International Monetary Fund (IMF), which facilitated Sri Lanka’s access to the IMF programme.”

The MEA reiterated India’s dedication to supporting Sri Lanka’s economic recovery, including through the promotion of long-term investments in key economic sectors.

Following the IMF’s approval of the Extended Fund Facility (EFF) programme for Sri Lanka on March 20 last year, the OCC was formed to engage Sri Lanka’s bilateral creditors in discussions to finalise a debt restructuring plan.

Sri Lanka faced a severe economic crisis in 2022, with a decline in foreign exchange reserves leading to a default on foreign debt. India and several other nations extended assistance to help Sri Lanka navigate the crisis.

June 27, Colombo (LNW): Two Supreme Court judges have recused themselves from deliberating on the contempt of court petition filed against former State Minister Diana Gamage.

The petition, submitted by former chairman of the Weligama Urban Council Rehan Jayawickrema, accuses Gamage of contempt for remarks made during a press conference subsequent to the Supreme Court’s ruling that disqualified her from serving as a MP.

The case was presented before a three-member Supreme Court bench, consisting of Justices Preethi Padman Surasena, Kumuduni Wickremasinghe, and Janak De Silva, on June 26.

However, Justices Janak De Silva and Kumuduni Wickremasinghe declared their decision to recuse themselves from the case.

The Supreme Court has subsequently ordered the petition to be recalled on August 5.

June 27, Colombo (LNW): Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara Eliya, Galle and Matara districts, with several spells of showers being expected to occur in Matale and Hambantota districts, the Department of Meteorology said in its daily weather forecast today (27).

Strong winds of about (40-50) kmph can be expected at times over the Western slopes of the central hills, Northern, North-central and North-western provinces and in Trincomalee, Hambantota and Monaragala districts.

Marine Weather:

The Ceylon Chamber of Commerce and the Board of Trade of Thailand have renewed iys partnership signing a Memorandum of Understanding (MOU) to further enhance trade, investment and tourism between Sri Lanka and Thailand.

A seven member delegation led by the Thai Chamber of Commerce and the Board of Trade of Thailand Chairman Sanan Angubolgul met with the Ceylon Chamber Chairman Duminda Hulangamuwa, along with senior representatives of the Chamber yesterday, culminating in the renewing of a Memorandum of Understanding .

The MOU was signed in the presence of Ambassador designated to Thailand Wijayanthi Edirisinghe, and Sri Lanka – Greater Mekong Business Council of the Ceylon Chamber of Commerce President S.M.D. Suriyakumara.

This event marks a renewal of a historic partnership, as the Ceylon Chamber’s first MoU was originally established with the Board of Trade of Thailand in 1988. 

Angubolgul expressed his enthusiasm about the renewed collaboration, emphasising leveraging the Ceylon Chamber’s position as the leading business Chamber in Sri Lanka, to foster bilateral trade ties. 

He also expressed keenness to explore opportunities in several sectors including agriculture, food and investment especially in the area of religious tourism, SPA and restaurants in which he sees high growth potential for Sri Lanka and Thailand. 

Hulangamuwa echoed these sentiments, noting that facilitating greater exchange of ideas, technology, and commerce between the two countries is imperative, especially following the recent signing of the Sri Lanka – Thailand Free Trade Agreement.

 He underscored the Ceylon Chamber’s commitment to creating a conducive environment for businesses from both countries to thrive and expand their operations.

Debt-stricken Sri Lanka has already signed a trade pact with Thailand in a bid to boost trade and investment as the Indian Ocean island nation is struggling to recover from its worst economic crisis that hit two year ago.

The Sri Lanka-Thailand Free Trade Agreement covering trade in goods, investment, custom procedures, and intellectual property rights was signed in the capital Colombo in the presence of Sri Lanka President Ranil Wickremesinghe and Thai Prime Minister Srettha Thavisin. Severamyjs In march this year. Sri Lanka began talks with Thailand on a free trade agreement in 2016.

The countries’ two-way trade was worth about $352 million in 2022, with Thailand’s exports at $292 million and Sri Lanka’s exports at $58 million, according to Sri Lankan government’s data.

Sri Lanka exports include mainly precious stones, apparel, tea, and spices while exports from Thailand include smoked rubber sheets, natural rubber, plastic, and cement. Sri Lanka’s government expects the trade pact would boost two-way trade up to $1.5 billion.The two countries have agreed to promote investment in areas such as fisheries, food processing, tourism, and green energy

June 26, Colombo (LNW): Sri Lanka banking sector has come under fire of two leading Ministers Dr. Ramesh Pathirana and Dr. Wijeyadasa Rajapakshe for half-hearted support to the struggling Micro, Small and Medium Entrepreneurs (MSMEs) thereby endangering a quicker recovery in the economy following multiple crises.

Industries and Health Minister Dr. Ramesh Pathirana urged private enterprises to stand against unfair banking practices and to continue lobbying for their interests regardless of political affiliations. 

Speaking at an awareness conference organised by the Ceylon Federation of MSMEs on ‘Business debt and finance management’ on the side-lines of the Industry Expo 2024, Pathirana insisted the need for businesses to create conversations and pressure policymakers to address their concerns. 

Dr. Pathirana warned that banks might channel most of the funds from international credit lines to their wealthy clients, calling for vigilance and protest against such practices.

“We learn that banks are trying to pull the usual pattern of getting the most of the funding facilities to their already rich clients from the loans extended by the international agencies like the World Bank and the Asian Development Bank,” the Industries Minister alleged.

He also pointed out that promoting fair banking practices are essential to drive economic development in Sri Lanka.

Separately at the same conference, in a scathing critique of the banking system, Justice Minister Dr.Wijeyadasa Rajapakshe criticised the policymakers for their failure to establish a credible economic policy to support enterprises and entrepreneurs. 

“Banks are established to support industries, entrepreneurs and people, not to flaunt their large balance sheets and profits. State banks, in particular, were created to expand the economy by supporting agriculture and industrial development, rather than solely providing credit facilities to the wealthy,” he said.

He criticised the economic transformations post 1977, noting that these changes have had detrimental effects on the overall growth of Sri Lanka.

“Prior to the open economy, the Bank of Ceylon was established to assist farmers, with over 300 branches set up countrywide through Agricultural Service Centres under Prime Minister Sirimavo Bandaranaike. 

The People’s Bank was also directed to support enterprises. Unfortunately, the overnight privatisation of the National Development Bank (NDB) and the profit-driven focus of the two State banks — Bank of Ceylon and People’s Bank, have deviated from their original missions,” he elaborated.

The Justice Minister also revealed troubling practices in the banking sector, where loans are often granted based on personal connections and political influence rather than proper evaluations and compliance. 

He claimed that the two State banks have over Rs. 620 billion in non-performing loans (NPLs), asserting that at least half of this amount will likely be written off eventually, as the banks did not secure any collateral or guarantees.