Connect with us

News

SL to receive first tranche of new IMF facility soon

Published

on

Under targeted reforms Sri Lanka will be first country in Asia to undergo governance diagnostic exercise.

Sri Lanka will receive the first tranche of the IMF Extended Fund Facility (EFF) within the next two days, IMF Senior Mission Chief for Sri Lanka,Peter Breuer told a press conference yesterday.

He said that Sri Lanka would immediately receive an initial disbursement of about 330 million dollars from the EFF arrangement, which is expected to catalyze new external financing including from the Asian Development Bank and the World Bank.

Given below is his statement in full: “The reform programme supported under the EFF arrangement is built on strong policy measures and prioritises: (i) an ambitious revenue-based fiscal consolidation, accompanied by stronger social safety nets, fiscal institutional reforms, and cost-recovery based energy pricing to ensure the state’s ability to support all its essential expenditures; (ii) restoration of public debt sustainability, including through a debt restructuring to ensure stable financing of the government’s operations; (iii) a multi-pronged strategy to restore price stability and rebuild reserves under greater exchange rate flexibility in order to alleviate the burden of inflation, particularly on the poor, to foster an environment of investment and growth, and to ensure Sri Lanka’s ability to purchase essential goods from abroad; (iv) policies to safeguard financial sector stability to ensure that the financial sector can play its key role in supporting economic growth; and (v) structural reforms to address corruption vulnerabilities and enhance growth.

“Commendably, Sri Lanka has already started implementing these challenging policy actions. It is now essential to continue the reform momentum under strong ownership by the authorities and the Sri Lankan people more broadly.

“The economic impact of the reforms on the poor and vulnerable needs to be mitigated with appropriate measures. In this regard, we welcome the authorities’ firm commitment to strengthen social safety nets, including through a minimum spending floor, well-targeted spending through a new Social Registry, and establishment of objective eligibility criteria. Tax reforms under the programme are designed to be progressive, that is, ensuring greater contributions from high-income earners. Efforts to increase tax revenues should be pursued in a growth-friendly manner while protecting the poor and most vulnerable.

“Sri Lanka’s public debt, at 128 percent of GDP as of end-2022, is unsustainable. The country is in arrears to all its external creditors. IMF Board approval of assistance to Sri Lanka required assurances from 2 official bilateral creditors that they will provide debt relief and/or financing to restore debt sustainability consistent with the program, as well as an assessment that the authorities are making good faith efforts to reach a collaborative agreement with private creditors.1 These requirements were met ahead of the Board meeting.

“It is now important for the Sri Lankan authorities and creditors to closely coordinate and make swift progress towards a debt treatment that restores debt sustainability under the EFF-supported programme. The President’s recent open letter to official bilateral creditors includes commitments to transparency and comparability of treatment for all external creditors, which should help facilitate this process. IMF staff will continue to assist the authorities with creditor coordination in line with the IMF’s policies.

Finally, we emphasise the importance of anti-corruption and governance reforms as a central pillar of the EFF-supported programme —they are indispensable to ensure the hard-won gains from the reforms benefit the Sri Lankan people.

The authorities have committed to fundamentally improve public financial management and strengthen the anti-corruption legal framework in line with the United Nations Convention against Corruption. In addition, the IMF is conducting an in-depth governance diagnostic exercise, which will assess corruption and governance vulnerabilities in Sri Lanka and provide prioritized and sequenced recommendations. Sri Lanka will be the first country in Asia to undergo a governance diagnostic exercise by the IMF. We look forward to further engagement and collaboration with stakeholders and civil society organisations on this critical reform area.”



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Renewed Lanka’s Easter Bombing probe puts NTJ’s South India radicalisation network back under lens

Published

on

New Delhi (IANS):The arrest of Sri Lanka’s former Intelligence chief, Retired Major-General Suresh Sallay is a turning point in the investigations into the 2019 Easter Sunday bombings that killed 279 people.

The move was a bold one taken by President Anura Kumara Dissanayake who won the presidency in 2024.

He had promised that all persons involved in the attack would be brought to justice.

Sallay was made State Intelligence Service (SIS) chief in 2019 after Gotabaya Rajapaksa became President.

The allegation against Sallay was that he had permitted the attack to take place with the intention of influencing that year’s presidential election, which was eventually won by Rajapaksa.

Sallay had become a prominent figure in Sri Lanka and was widely credited with dismantling the LTTE. His arrest has led to a political storm and many state that it could revive tensions relating to the LTTE.

Ali Sabry, former Sri Lankan Minister for Foreign Affairs said that the developments are deeply troubling.

An Indian official said that the developments in Sri Lanka are being monitored closely.

On the question whether the LTTE issue would come back into the picture following the arrest of Sallay, the officer said that attempts are being made, but it would be very tough.

There have been several cases that the National Investigation Agency (NIA) has been probing concerning the revival of the LTTE.

The ISI, too, has tried its hand in ensuring the revival of the LTTE, but has not been successful so far.

To prevent the revival of the LTTE, both India and Sri Lanka have been working very closely.

Another official explained that the current ties with Sri Lanka have gone from ideological to an investment-led partnership.

Prime Minister Narendra Modi and President Dissanayake share a pragmatic relationship and this has gone a long way in ensuring cooperation on all fields including security, the official explained.

While some in Sri Lanka do not subscribe to Dissanayake’s decision on Sallay, the fact is that the Easter Bombing case has to be probed from every possible angle.

An Intelligence Bureau official says that a major concern today are the activities of the National Thowheeth Jama’ath (NTJ) and Jamathei Millathu Ibrahim (JMI), the two outfits responsible for this attack.

The NTJ in particular has a vast presence in South India and has managed to radicalise a large number of youth in Tamil Nadu and Kerala.

The mastermind of the attack, Mohammad Zahran Hashim was a frequent visitor to Tamil Nadu. He was also responsible for the radicalisation of Jamesha Mubeen who carried out an unsuccessful attempt to bomb a temple in Coimbatore in 2022.

The Indian agencies have been actively pursuing the role played by Hashim. A probe by the NIA in the South India radicalisation case revealed that the entire plot was being run by Hashim from Sri Lanka.

At least 50 of the 100 radicalisation videos seized by the agency were discourses by Hashim, who had close links with the Islamic State.

Officials say that Sallay could provide details to investigators about the module that Hashim ran.

This would come in handy for the Indian agencies who are probing cases directly linked to the NTJ in South India.

Hashim, who was the ring leader for the suicide bombers during the Easter Bombing had spent a considerable amount of time in India.

The Indian agencies would want to learn if any of the locals that Hashim interacted with had any idea about the Easter Bombings.

While in India, Hashim had focussed his radicalisation programmes mainly at Mallapuram, Coimbatore, Nagapattinam, Kanyakumari, Ramnathpuram, Vellore, Trichy and Thirunelveli, the NIA probe found.

Pallay has for now denied any links to the Easter Bombings.

Indian officials say that they do not want to comment on Pallay and his alleged links.However, it is important that the bombings are probed thoroughly since the activities of the NTJ have a direct bearing on India, particularly the southern states, the official also added.

Continue Reading

News

Sajith warns: Don’t let trade union action stall cyclone relief

Published

on

Sajith Premadasa

Opposition and SJB Leader Sajith Premadasa on Friday stressed that relief efforts for communities affected by Cyclone Ditwah must not be derailed by internal disputes, as several trade unions announced plans to withdraw from disaster relief duties.

Taking to ‘X’, Premadasa called on the Government to prioritise coordination and ensure uninterrupted assistance to families still awaiting aid.

“The Government must work closely with officers on the ground to ensure coordination and uninterrupted support. When families are still waiting, how can we allow for this confusion?” he questioned, emphasising that relief measures should not be delayed under any circumstances.

His remarks follow the decision by several trade unions representing Government officers engaged in disaster relief operations to launch trade union action beginning from Friday (27 February).

The unions announced their withdrawal from relief-related duties, citing unresolved issues affecting officers involved in post-disaster operations.

According to the unions, more than 93 days have elapsed since the widespread destruction caused by Cyclone Ditwah. During this period, disaster relief officers and Grama Niladharis have worked continuously, day and night, acting as key coordinators between the Government and affected communities. However, they claim that authorities have failed to adequately address longstanding concerns relating to officers engaged in relief work.

Meanwhile, Secretary to the President Nandika Sanath Kumanayake yesterday underscored the need to expedite relief and recovery initiatives.

Chairing a progress review meeting of the National Council for Disaster Management, he called for strengthened coordination among State institutions responsible for disaster response, noting that effective inter-agency collaboration is critical to delivering timely assistance to affected communities.

Efforts to accelerate recovery and maintain continuity in relief operations are ongoing.

Continue Reading

News

Complaints filed with CID, Bribery Commission over alleged substandard coal deal

Published

on

Allegations surrounding the importation of substandard coal intensified yesterday, with civil society representatives and Opposition MPs lodging complaints with the CID and the Commission to Investigate Allegations of Bribery or Corruption, calling for comprehensive investigations into the procurement process and alleged financial losses to the State.

A group of civil organisation representatives submitted a complaint to the CID on Friday (27 February), requesting a probe into what they described as irregularities in the coal procurement process and the resulting loss to the country.

Addressing the media, Ananda Palitha, Convenor of the Samagi Joint Trade Union Alliance affiliated with the SJB, alleged that tender procedures had not been followed properly and claimed that emergency purchases had facilitated corruption.

“The tenders are not called on time. The same company that was previously blacklisted after attempting to bring in substandard rice is now

being awarded the coal tender. They have been given time until July to get registered. The corruption is already confirmed. It is very clear with these emergency purchases,” he charged.

Palitha also expressed confidence that the current President would not interfere with investigations into the coal imports, drawing a comparison to the legal action instituted against former Minister Keheliya Rambukwella over the substandard medicine import controversy during the previous administration.

Meanwhile, a group of SJB parliamentarians filed a separate complaint with the Bribery Commission on Thursday (26 February) over the same issue. MPs Mujibur Rahman, Chaminda Wijesiri, Sujith Sanjaya Perera and Kavinda Jayawardena met Commission officials to formally submit their complaint.

Speaking to the media afterwards, MP Mujibur Rahman alleged that the company concerned had violated two key contractual conditions — by supplying substandard coal and by failing to deliver shipments within the stipulated timeframe.

He contended that either of these violations would be sufficient grounds to cancel the agreement, but claimed the Government was attempting to justify the transaction by asserting that no fraud had occurred.

“By now it has been revealed that this transaction is corrupt,” he said, adding that the Bribery Commission, which had previously conducted extensive investigations into allegations against the former Government, should similarly take action to recover what he claimed was Rs. 7,000 million in public funds lost due to the deal.Investigations into the matter are ongoing.

Continue Reading

Trending