Page 2 - Srilanka Emergency

US to participate in Sri Lanka's debt restructuring to help revive economy

The US has agreed to cooperate with Sri Lanka's debt restructuring as prescribed by the IMF in its staff-level agreement for a USD 2.9 billion bailout package to help revive the country's ailing economy. US Treasury Secretary Janet Yellen informed Sri Lankan President Ranil Wickremesinghe that the US as a creditor country would participate in the country's debt restructuring. The US has pledged to continue to engage with other government agencies -- the World Bank and the Asian Development Bank (ADB). Wickremesinghe's office said the US treasury department had welcomed the government's decision to seek IMF assistance. On September 1, the IMF reached a staff-level agreement to support Sri Lanka's economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about USD 2.9 billion. Sri Lanka is going through its worst economic crisis since its independence in 1948 which was triggered by a severe paucity of foreign exchange reserves. Commenting on the US' ...

IMF chief pleased that Sri Lanka reached staff-level deal for $2.9 billion

The IMF chief Kristalina Georgieva on Sunday said she is pleased the Washington-based lender and the Sri Lankan government have reached a staff-level agreement to provide about USD 2.9 billion to help the bankrupt country, terming the deal as an important step forward. The International Monetary Fund (IMF) on Thursday announced that it will provide Sri Lanka a loan of about USD 2.9 billion over a four-year period to help the island nation overcome the unprecedented economic turmoil. The bailout package is expected to boost the country's credit ratings and the confidence of international creditors and investors. Very pleased that IMF staff and Sri Lankan government officials have reached a staff-level agreement to support the country's economic policies with a 48-month Extended Fund Facility of about USD 2.9 billion, Georgieva said in a tweet. This is an important step forward for Sri Lanka, she added. The new Extended Fund Facility (EFF) arrangement will support Sri Lanka's progra

With no immunity, Sri Lanka's ousted prez Rajapaksa faces legal troubles

Sri Lanka's ousted President Gotabaya Rajapaksa, who returned home after seven weeks in exile following protests over economic hardships, could face legal action over forced disappearances of activists now that he has been stripped of constitutional immunity, a lawyer said Saturday. Rajapaksa flew to Colombo around midnight Friday from Thailand and was escorted under military guard to his new home in the capital. He has no pending court cases because he was protected by constitutional immunity as president. A corruption case against him during his time as a top defence official was withdrawn soon after he was elected in 2019. However, Rajapaksa will be served a summons next week to appear at the Supreme Court, where his immunity from testifying on the forced disappearance of two young political activists is challenged, said lawyer Nuwan Bopage, who represents the victims' families. He said Rajapaksa fled the country when he was about to be served a summons in July. The disappearanc

Sri Lanka parliament passes 2022 interim budget with 120 votes, 5 opposed

Sri Lanka's Parliament passed the interim budget presented by President Ranil Wickremesinghe for 2022 on Friday, a day after the IMF announced it will provide a loan of about USD 2.9 billion to help the crisis-hit country tide over its worst economic hardships. The budget was passed with only 5 members voting against it. Three legislators from the Janatha Vimukthi Peramuna (JVP) and two MPs from the All Ceylon Tamil Congress voted against the interim budget. A total of 115 members in the 225-member assembly voted in favor while the main opposition SJB abstained from voting. Wickremesinghe aimed for tax reforms while allowing relief to the most vulnerable groups affected by the ongoing economic crisis in the island nation. The interim budget introduced a number of tax reforms pertaining to income tax, value added tax (VAT), telecommunication levy and betting and gaming levy. VAT rate will be increased to 15 per cent from the current rate of 12 per cent with effect from September 1 t

IMF may make formal announcement on SL's bailout package tomorrow: Reports

The visiting IMF delegation is expected to conclude talks with the Sri Lankan government and make a formal announcement on Thursday on the much-awaited bailout package and staff-level agreement for the cash-strapped island nation, media reports said on Wednesday. Sri Lanka is going through its worst economic crisis since its independence in 1948 which was triggered by a severe paucity of foreign exchange reserves. The second such visit from the International Monetary Fund (IMF) in three months comes at a time when Sri Lanka is scrambling to chalk out a staff-level agreement with the Washington-based global lender for a USD 5 billion programme, which could be the antidote for the country's current economic travails. "The IMF Mission in Colombo has been extended by one day because discussions are still ongoing with the authorities, Colombo Page news portal reported, quoting Senior Mission chief Peter Breuer, as saying. Breuer, who is an expert in debt restructuring, said his team pla

Sri Lanka president raises IMF loan hopes, budget aims to bolster revenue

Sri Lanka's talks with the IMF on a bailout package have made solid progress, its president said

Crisis-hit Sri Lanka to privatise national carrier as it runs out of money

Sri Lanka on Monday said it will privatise the country's loss-making national carrier as the cash-strapped government "can no longer afford to inject money" into running the airline. The government is looking to sell a 49 per cent stake each of the SriLankan Airlines' catering and ground-handling units in efforts to restructure the state-run carrier, while 51 per cent will be retained under state hold, Aviation Minister Nimal Siripala de Silva told reporters here. This restructuring is essential as the government can no longer afford to inject money into running the airline, he said. Annually the government has been providing the airline between USD 80 billion to USD 200 billion to run its operations, de Silva said. The minister said the revenue from the sale of the catering operation can be used to pay off debt amounting to USD 80 million that was obtained by mortgaging its shares, as well as some other loans. The airline's debt currently amounts to USD 1.226 billion (LKR 401 ...

India, 9 other countries eye Lankan market to sell petroleum items: Report

Sri Lanka's Ministry of Power and Energy has said that 24 companies from 10 countries, including India have evinced interest in selling petroleum products in the crisis-hit country's petroleum sector, according to media reports. Sri Lanka is in the midst of its worst economic crisis in decades, which is triggered by a severe paucity of foreign exchange reserves. Sri Lanka's Minister of Power and Energy Kanchana Wijesekera said that 24 companies from the United Arab Emirates, Saudi Arabia, the United States, China, India, Russia, the UK, Malaysia, Norway and the Philippines have submitted proposals for the Expressions of Interest (EOI) to engage in the country's petroleum sector, news portal Colombo Page reported on Sunday. In July, the Ministry of Power and Energy had called for EOI from established companies in petroleum producing countries using their funds for distribution and selling of petroleum products in Sri Lanka on a long-term basis. A ministry-appointed panel will now ..

'Ball in Sri Lanka's court', says China on debt restructuring request

China has said "the ball is in Sri Lanka's court" as it avoided giving a direct reply to the island nation's request of restructuring its debt, according to a media report here on Saturday. Sri Lankan has been urging China to restructure its debt as the nation continues to reel under acute economic crisis. It is estimated that Sri Lanka owes debt payments of USD 1.5 to 2 billion this year to China. Overall China's loans and investments in Sri Lanka were estimated to be more than USD eight billion in the last few years. But Beijing has not made a public commitment for debt relief assistance to Sri Lanka so far. Quoting a Chinese embassy spokesman, Daily Mirror news website reported that Beijing had communicated to the Sri Lankan Finance Ministry three months ago about its readiness to discuss how to address the debt issue with the Chinese banks. China encouraged its banks to discuss it. The Chinese position was also communicated during the telephone conversation between Chinese Prem

India slams China, says Sri Lanka needs support, not 'unwanted pressure'

India on Saturday hit back at China for alleging that it was "interfering" in Sri Lanka's internal affairs, firmly telling Beijing that what Colombo needs now was "support, not unwanted pressure or unnecessary controversies" to serve another country's agenda. Hinting at India's objection to the docking of Chinese ballistic missile and satellite tracking ship 'Yuan Wang 5' at the Hambantota port, Chinese ambassador to Sri Lanka Qi Zhenhongon in a statement on Friday said that "external obstruction" based on so-called security concerns without any evidence is a "thorough interference" into the island nation's sovereignty and independence. "We have noted the remarks of the Chinese Ambassador. His violation of basic diplomatic etiquette may be a personal trait or reflecting a larger national attitude," the High Commission of India in Sri Lankan tweeted. It said Qi's view of India may be coloured by how his own country behaves. "India, we assure him, is very different," the Indian miss

US, EU concerned over SL protesters' detention under counter-terrorism law

US and Canada along with the EU have expressed concern over Sri Lanka's use of Prevention of Terrorism Act on protestors who participated in the agitation that led to Gotabaya Rajapaksa stepping down

Sri Lanka's Oppn party demands Rajapaksa must be tried for misusing funds

Sri Lanka's former president Gotabaya Rajapaksa has the right to return to the country, but he must be tried for allegations of misuse of funds since he does not enjoy legal immunity, main Opposition party Samagi Jana Balawegaya has said. Rajapaksa, 73, fled the country and resigned last month in the face of a popular uprising against his government for mismanaging the island nation's economy. Gotabaya Rajapaksa is a citizen of this country and he has the right to return to his motherland. No one can deny this right. However, he should be tried for the allegations of misuse of funds, Samagi Jana Balawegaya (SJB) CEO Ajith P Perera was quoted as saying by the Daily Mirror newspaper. The Sri Lanka's Constitution allows privileges to former presidents, including personal security and an office with staff. There was a case against him for allegedly spending state funds for his parent's monument. It is possible to make him face the trials and penalise him if is found guilty, as he does

Rajapaksa not using state funds for expenses abroad: Sri Lankan govt

Gotabhaya Rajapaksa is not using state funds for any expenses he makes abroad: Sri Lanka

India to hand over Dornier maritime surveillance aircraft to Sri Lanka Navy

India will hand over a Dornier maritime surveillance aircraft to Sri Lanka Navy at a ceremony here which will be attended by President Ranil Wickremesinghe

Four months on, anti-govt protests over crisis in Sri Lanka fizzle out

Demonstrations planned by Sri Lankan opposition parties and trade unions have fizzled out, with smaller crowds turning up to mark the fourth month of an anti-government protest campaign

Over 5.5 mn vehicles registered with Sri Lanka's fuel quota system

Over 5.5 million vehicles have been registered with Sri Lanka's national fuel pass or QR code system, Minister of Power and Energy Kanchana Wijesekera said

Lankans bide time as new govt scrambles to find solutions for economic woes

Sri Lankans who have endured months of fuel and food shortages are bracing for more pain as a newly installed government scrambles to find solutions to the Indian Ocean nation's economic emergency

'No home to go': Sri Lanka's Prez Wickremesinghe on protestors threat

Sri Lanka's President Ranil Wickremesinghe on Sunday said that there is no point in demanding that he "goes home" as he has no home to go to while referring to the threats received from the protestors

Crisis-hit Sri Lanka looks forward to enhancing ties with Russia: Report

In order to enhance ties with Russia, the newly appointed Sri Lankan Minister of Foreign Affairs Ali Sabry met with the Ambassador of the Russian Federation to Sri Lanka Yury Materiy on Sunday

Sri Lanka to implement QR code system-based fuel distribution from today

Sri Lankans have been urged not to overcrowd fuel stations in the country as the fuel distribution process for vehicles as per QR code system which was delayed earlier, will be implemented from Monday