By: Staff Writer

June 24, Colombo (LNW): “History has been made with the end of bankruptcy in Sri Lanka consequent to striking a debt restructure deal with external creditors and sovereign bond holders this week”, former finance minister Ravi Karunnayake confirmed 

The finalisation of the Memorandum of Understanding with the Official Creditor Committee and final agreements with the Export Import Bank of China   along with Ad Hoc Private Bondholder’s group external on debt treatments would be expected on Wednesday 26.

Sri Lanka will announce the freedom from bankruptcy status on Thursday 27 after declaration of a preemptive default in April 12 2022 suspending external debt repayment as it had US$ 20 million as gross official reserves.

The restoration of fiscal sustainability, sustenance in revenue mobilisation efforts may have been prompted external creditors finalising the debt restructuring in accordance with the IMF supported program targets and shielding social and capital spending, Mr Karunanayake said.  

President Ranil Wickremesinghe has implemented a reform program designed to stabilise the economy and country containing a combination of steps to restore fiscal and debt sustainability, improve governance, and reduce corruption risks

The economy is now recovering, inflation remains low, revenue collection is improving, and reserves continue to accumulate.

The key to transitioning from debt stabilisation achieved at present to a full economic recovery is to strengthen the private sector as it is the engine of growth passing the benefits of reducing interest rates sternly directing banks to follow suite he emphasised.

Revolution needed the country today is the public sector commercialisation he said adding that the private sector has to  take up the challenge of increasing exports  contributing their share to GDP growth.

The government is taking measures towards further trade liberalisation to promote export and foreign direct investment. 

Real GDP expanded by 3 percent year-on-year in the second half of 2023. May 2024, inflation was 0.9 percent, and gross international reserves increased to $5.42 billion dollars as at end of May this year. The primary balance improved to a surplus, with tax revenue increasing to 9.8 percent of GDP in 2023.

Despite these positive developments, the economy is still vulnerable due to the impact of high interest rates maintained by the Central Bank for long period, revenue mobilisation, reserve accumulation and banks’ ability to support the economic recovery continue to affect the recovery process, he claimed.  .

Sri Lanka’s vast volatility in exchange and interest rates, which cannot be predicted for even in the short term and policy changes are key threats for the banking sector and economy, he pointed out.

The Central Bank has raised borrowing costs to tackle record-high domestic inflation and to contain any buildup of underlying demand in 2022 h.

The Standing Lending Facility rate was raised by a full percentage point (or 100 basis points) to15.5 percent while the Standing Deposit Facility Rate rose by the same amount to 14.5 percent, the highest in 21 years.

Sri Lanka’s small and medium businesses are in more trouble with the increase of bank interest to 36 percent from over 7 percent loans taken during a time when interest rates were kept down by authorities, than recent tax hikes, according to SME associations.

The government is now compelled rescue Small and medium-sized enterprises (SMEs) make up a large part of Sri Lanka’s economy, with over one million SMEs accounting for approximately 75 percent of all businesses.

These are found in all sectors of the economy and are estimated to contribute about 45 percent of total employment in Sri Lanka.

June 24, Colombo (LNW): Earlier this (24) morning, the Colombo District Court ruled for a case involving former President Maithripala Sirisena to proceed ex parte.

The decision was reached as Sirisena did not attend the court proceedings concerning an injunction that barred him from acting as the Chairman of the Sri Lanka Freedom Party (SLFP).

The legal action was initiated by Montague Sarathchandra, a member of the SLFP’s executive committee.

On April 4, the Colombo District Court had issued an injunction preventing Sirisena from holding the SLFP chairman position.

Following his resignation from the SLFP Chairman role on May 12, the faction led by Sirisena subsequently appointed Justice Minister Wijeyadasa Rajapakshe as the new party Chairman.

1. President Ranil Wickremesinghe is set to deliver a national address on Wednesday (26): During his speech, the President will outline the current economic situation and update the public on the progress of foreign debt restructuring: Ravi Karunanayake, the national secretary of the United National Party (UNP), suggests that the President’s address will offer significant relief to the citizens.
   
2. MP Gamini Waleboda announces that a Sri Lankan delegation, including Defence Secretary and Foreign Ministry officials, will depart for Russia today (24) to arrange the repatriation of Sri Lankan ex-military personnel involved in the Russia-Ukraine conflict: They will hold official meetings in Moscow on Wednesday (26) with Russian Deputy Ministers of Defence and Foreign Affairs: The visit aims to facilitate diplomatic discussions and coordination on the matter.
   
3. SLPP MP Sathasivam Viyalendiran sworn in as the State Minister of Trade and Environment: The swearing-in ceremony was held at the Presidential Secretariat, where President Ranil Wickremesinghe administered the oath of office.
   
4. Education Minister Susil Premajayantha highlights the need for modernising Sri Lanka’s education system due to outdated state university curricula: stresses integrating research and development from schools to universities: Education Secretary Thilaka Jayasundara notes the success of initiatives to boost entrepreneurship, aiming to increase the workforce rate from 2.8% to 10% by 2030.
   
5. The Department of Animal Production and Health imposes a ban on importing animals and animal products from countries with bird flu outbreaks, aiming to prevent the entry of Avian Influenza A(H5N1) virus: Director General Dr. Hemali Kothalawala highlights the necessity of these measures for national protection, confirming no imports from affected regions: assures the public of strengthened disease controls and advised against undue concern.
   
6. The Central Bank appoints A. A. M. Thassim and J. P. R. Karunaratne as Deputy Governors, effective June 20 and June 24, respectively: With over three decades of experience each, their appointments were recommended by the CBSL Governing Board and approved by the Minister of Finance, in line with the Central Bank of Sri Lanka Act.
   
7. The Ceylon Teachers’ Union (CTU) announces teachers, principals, teacher instructors, and Piriven educators will hold a one-day sick leave protest on Wednesday (26) to address unresolved salary discrepancies: Despite a Cabinet sub-committee addressing one-third of the issues, the remaining anomalies persist: The protest will include a demonstration outside Fort Railway Station to demand comprehensive solutions.
   
8. Sri Lankan consumer confidence remains largely unchanged in May, just below March’s peak, with a slight rise towards month’s end, reports the Institute for Health Policy (IHP): The Index of Consumer Sentiment fell by one point to 29, while the Index of Current Conditions dropped two points to 24: The Index of Consumer Expectations increased by one point to 33, indicating persistent overall pessimism.
   
9. The non-academic staff of government schools are on a two-day sick leave protest starting today (24) and tomorrow (25): This action, led by the Education Non-Academic Employees’ Union, affects North Central, North Western provinces, and Kandy District today: General Secretary Ajith K. Thilakarathne cites several demands, including a national policy for non-academic staff: Meanwhile, the Principal Service Union plans a nationwide strike on June 26, despite the Ministry of Education’s affirmation of normal school operations from today.
   
10. Sri Lanka’s boxing team excels at the Seychelles Constitutional Day Boxing Tournament, winning six medals: secures two gold, two silver, and two bronze medals across various weight classes: PS Fernando and CD Udayakumara claimed gold medals in their respective categories: The team, supported by officials including Udayaweera Kumaratunga and IR Balasooriya, competed against boxers from Seychelles, Mauritius, Kenya, and Reunion, with strong backing from the Sri Lankan community in Seychelles.

June 24, Colombo (LNW): A special delegation will depart for Russia today (24) to facilitate the repatriation of Sri Lankan ex-military personnel involved in the ongoing Russia-Ukraine conflict and to engage in related discussions, MP Gamini Waleboda disclosed.

The delegation, consisting of six members including the Defence Secretary and officials from the Ministry of Foreign Affairs, is scheduled to leave for Russia.

An official meeting between the Sri Lankan delegation and Russian government representatives will take place in Moscow on Wednesday (26).

The discussions will include a morning meeting with the Russian Deputy Minister of Defence and an evening meeting with the Russian Deputy Foreign Minister.

Waleboda noted that several rounds of diplomatic talks are planned for this visit.

June 24, Colombo (LNW): Sri Lanka Podujana Peramuna (SLPP) MP Sathasivam Viyalendiran has been sworn in as the State Minister of Trade and Environment.

The swearing-in ceremony was held at the Presidential Secretariat, where President Ranil Wickremesinghe administered the oath of office.

June 24, Colombo (LNW): The Department of Animal Production and Health in Sri Lanka has announced a ban on importing animals and animal products from countries experiencing outbreaks of bird flu.

Director General Dr. Hemali Kothalawala stated that these measures aim to prevent the Avian Influenza A(H5N1) virus from entering Sri Lanka, following recent reports of the virus in several nations.

Dr. Kothalawala emphasised that the restrictions are essential for the country’s protection and confirmed that no imports will be allowed from affected regions.

She reassured the public that existing disease control measures in Sri Lanka have been further reinforced and urged people not to panic.

June 24, Colombo (LNW): Showers will occur at times in Western and Sabaragamuwa provinces and in Kandy, Nuwara Eliya, Galle and Matara districts, with fairly heavy showers about 50mm being likely to occur at some places in Western and Sabaragamuwa provinces and in Kandy and Nuwara Eliya districts, the Department of Meteorology said in its weather forecast today (24).

Several spells of showers will occur in North-western province and in Matale district.

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:

June 24, Colombo (LNW): Teachers, principals, teacher instructors, and Piriven educators will participate in a one-day sick leave protest this Wednesday (26) to address unresolved salary discrepancies and other demands, announced the Ceylon Teachers’ Union (CTU).

CTU General Secretary Joseph Stalin emphasised that the Cabinet sub-committee has agreed to correct one-third of the salary anomalies based on the Subodhini Committee Report.

However, the remaining salary issues for teachers and principals remain unaddressed.

The sick leave protest aims to press for the resolution of the remaining two-thirds of the salary anomalies.

All participating educators will gather outside the Fort Railway Station for a demonstration and to plan further actions if the government fails to respond.

“We also insist that the government should not impose school expenses on parents. It has been two years without any action to resolve the salary anomaly issue. During the sick leave protest, teachers and principals will abstain from their educational duties,” Stalin told Daily Mirror.