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It’s China that happens to have the cash now, says Sri Lanka Minister

Published

6 years ago

2020/10/25

Each country works out its own financing arrangements, says Ajith Nivard Cabraal, referring to Sri Lanka’s borrowing from China

by Meera Srinivasan

While government critics and the Opposition in Sri Lanka raise concern over the Rajapaksa administration’s growing reliance on China, in the wake of Colombo seeking a new $700 million loan from Beijing, a State Minister has said it is China that has the “most amount of cash now”.

“In different times in world history, different countries have been the ones who have had the most amount of cash. And now it happens to be China, so China will naturally invest all over the world,” Ajith Nivard Cabraal, State Minister of Money and Capital Market and State Enterprise Reforms, told The Hindu in a recent interview, on Sri Lanka’s response to the economic impact of the global pandemic. “I think we should all respect that,” said the Minister, who was the Governor of the Central Bank of Sri Lanka during Mahinda Rajapaksa’s last term in office.

Amid the World Bank and International Monetary Fund’s (IMF) worrying forecast of a GDP contraction up to almost 7%, credit rating agency Moody’s downgrading of Sri Lanka by two notches to the “very high credit risk” category, the daunting $4.5 billion foreign debt due in the coming year, falling revenues and rising living costs, the Minister expressed optimism. Sri Lanka is exploring different options to repay its debt, including additional loans from China, currency swap facilities with India and China, and Samurai and Panda bonds, he said.

Mr. Cabraal’s remarks came a week after a high-powered delegation from Beijing flew into Colombo, and met President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, who is also the Finance Minister. China, which sanctioned a $500 million loan in March to help Sri Lanka cope with the coronavirus’s blow, is likely to favourably consider the Rajapaksa government’s request for an additional $700 million now, having pledged support to the island nation’s pandemic recovery effort. Further, Sri Lanka is also negotiating a nearly $1.5-billion currency swap facility with the People’s Bank of China. Sri Lanka owes China over $5 billion so far.

Trade practices

“Nobody says China has given $1.5 trillion loans to the U.S.? We are talking about $700 million coming in… these are the trade practices, financing practices, prevalent in the world. Each country works out their own financing arrangements in line with what they feel is best for them,” Mr. Cabraal said, adding, other countries such as Japan, the U.S. and India have also been big investors in Sri Lanka. The U.S., for instance, “is a very strong investor in Sri Lanka’s sovereign bonds. I met the Indian CEO forum here, and I was quite surprised that there are more than 50 in Indian CEOs here.”

‘Different sources’

Government critics, including former Finance Minister Mangala Samaraweera, has urged the Rajapaksa administration to engage the IMF, rather than fall into a “Chinese debt trap”, but the government has ruled out an IMF bailout.

The rapid credit facility that the government had earlier sought from the multilateral lender is yet to come through. Expressing displeasure, Mr. Cabraal said: “Rapid means rapid, no. Where is rapid in October when the accident occurred in March,” adding the government would still talk to the IMF.

While President Rajapaksa has vowed to disprove the “Chinese debt trap analysis”, few other sources seem as willing to lend readily. As for India, the Reserve Bank of India signed a $400 million swap agreement with Sri Lanka in July, to help boost Sri Lanka’s foreign reserves, and is perusing a further $1 billion requested by Sri Lanka. New Delhi is also yet to respond to PM Rajapaksa’s request for a debt moratorium — Sri Lanka owes $ 960 million to India — but Mr. Cabraal observed bilateral moratoriums cannot help much. “Emerging nations have all faced external sector stresses, which is not peculiar to Sri Lanka. Recently, some of the international agencies had provided some support for around 70 odd countries, which have been ad-hoc arrangements. This is a global problem, which needs a global solution,” he said.

Despite the external sector weakening significantly, Sri Lanka is “fortunate”, in Mr. Cabraal’s view. The country’s foreign reserves have “not been affected too much”, exports have “held firm” and remittances have been “pretty strong”. In September, Sri Lanka recorded over $700 million from worker remittances. Exports in July crossed $1 billion and the government’s move to restrict imports “has paid off”, according to Mr. Cabraal. “Our foreign reserves will be around $5.8 billion. I would say that is not an uncomfortable level.” A clearer picture will emerge only by end of the year, as the Department of Census and Statistics postponed the release of the second quarter GDP figures until then.

However, Sri Lanka’s challenge is far from over. It remains to be seen if the remittances will continue flowing in. Some 50,000 Sri Lankan migrant workers, who were employed in West Asian countries, want to return, while thousands lost their jobs and at least 67 succumbed to Covid-19 in their host countries. Domestically too, a new wave of COVID-19 infections is rapidly spreading within the garment manufacturing sector that is crucial to exports.

Falling revenues

Meanwhile, Sri Lanka’s revenues have fallen drastically, by an estimated LKR 440 billion (about $2.3 billion), also in the wake of tax cuts on imported items, prompting economists to emphasise a sound fiscal policy in the coming budget. Asked if the government was taking a fresh look at its tax regime to boost revenues, including considering a wealth tax that the IMF has recommended in its recent World Economic Outlook, Mr. Cabraal said: “You cannot make poor people rich, by making the rich people poor…we don’t want to put mansion taxes and these silly taxes which have actually crippled the more affluent people and remove them from the equation of providing jobs and providing support,” adding that the upcoming Budget, to be tabled next month, would reflect a “a balanced partnership”, where small and medium scale businesses will be supported, so they can extend job opportunities to the poor.

(THE HINDU)

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22A: Exclusion of 8 petitions questioned, action filed against SC Registrar, others

Published

3 hours ago

2026/09/8

Sahan Weerasooriya

The Supreme Court has been petitioned seeking an explanation as to how eight petitions filed against the 22nd Amendment to the Constitution were not listed for hearing . Two of the petitioners, namely Dias Bandaralage Ajith Shantha Kumara Jayathilaka and Gunathilakage Dakum Dulara Gunathilaka, have requested an opportunity to examine the official Registry and parliamentary records so that all material facts may be objectively established. They said that their petitions that had been registered by the Supreme Court should have been heard along with other petitions.

The Registrar of the Supreme Court, Secretary General of Parliament, Speaker and the Attorney General have been named as the respondents.

The five-member bench that heard the petitions consisted of Chief Justice P. Padman Surasena, Achala Wengappuli, J, Arjuna Obeyesekere, J, Sampath B. Abayakoon, J and K.M.G.H. Kulatunga, J.

The petitioners sought the explanation in the absence of any judicial order dismissing, rejecting, striking out, terminating or otherwise disposing the said petitions. They have requested the disclosure of the complete procedural history of the unlisted cases.

The second petitioner Gunathilaka has referred to a speech by Jaffna District Independent MP Ramanathan Archuna in Parliament, on 21 August, 2026, regarding X-Press Pearl, a container carrier that sank off the port of Colombo, and related matters.

They have sought leave to proceed under Articles 17 and 126 of the Constitution and asked for a full Bench of the Supreme Court, or the widest Bench, constitutionally permissible.

They also requested that the Chief Justice and Achala Wengappuli refrain from participating in the hearing and determination of their application, having regard to the objective-appearance issue arising from their prior constitutional and judicial participation in matters forming part of the factual subject matter now requiring examination.

Meanwhile, General Secretary of Vinivida Foundation, Nagananda Kodituwakku, has requested the Supreme Court Registrar not to proceed with the determination of 22nd Amendment process, pending the hearing of fundamental rights petition filed by Chairman of the Vinivida Foundation lawyer, Sugandhika Fernando, seeking a full bench, excluding Chief Justice Preethi Padman Surasena, to hear the petitions challenging the 22nd Amendment Bill. She also requested that the hearing be suspended immediately until the matter was fully heard and determined.

Among the respondents are Chief Justice Surasena, the first respondent, and Attorney General Parinda Ranasinghe. Justices Yasantha Kodagoda, Shiran Gooneratne, Achala Wengappuli and Priyantha Fernando.

(SF)

News

Thailand shuts door on undesirables from Sri Lanka

Published

3 hours ago

2026/09/8

Sahan Weerasooriya

Sri Lankan passport holders travelling to Thailand wouldn’t be eligible for visa-free entry from 15 September, 2026, according to a new visa notice issued by the Royal Thai Embassy in Colombo.

Under the new measures, all Sri Lankan travellers will be required to obtain a Thai visa before departing for Thailand. Visa applications must be submitted online through Thailand’s official e-Visa system.

The Royal Thai Embassy in Colombo has also clarified that it will not accept visa applications submitted in person or in physical form.

According to the Embassy, tourist visa applications submitted by Sri Lankan passport holders are expected to take approximately 3–7 working days, calculated from the date on which all required documents have been duly completed and submitted.

Processing times for Non-Immigrant Visa and DTV (Destination Thailand Visa) applications may take longer.

Foreign nationals residing in Sri Lanka or the Maldives who hold valid work or residence permits may also require additional processing time.

The Embassy has cautioned applicants that it reserves the right to request additional documents or information when necessary. Applicants may also be asked to attend a visa interview on a case-by-case basis.

The new requirement represents a significant change for Sri Lankan travellers, who will need to complete the visa process before travelling to Thailand from September 15 onward.

The Embassy has urged applicants to rely only on its official communication channels for the latest visa requirements, procedures and updates.

News

Expertise France and the EU launch media project to strengthen environmental journalism in Sri Lanka

Published

3 hours ago

2026/09/8

Sahan Weerasooriya

Representatives from Expertise France and CFI mark the signing of the partnership agreement at the Expertise France headquarters in Paris to implement the EU-funded Media Capacity Building Programme in Sri Lanka. From left: Mariam Gbané, Louis Bonneau, Florence Minery from CFI; alongside representatives from Expertise France Anna Krainc, Cynthia Anno, and Laura Cavert

A comprehensive new media initiative is officially underway in Sri Lanka following the official signing of agreements with the French media development agency, Canal France International (CFI), and the Sri Lanka Press Institute (SLPI) yesterday. Backed by the European Union-funded Green Recovery Facility programme, the “Media Capacity Building Programme for the Promotion of the Green Transition” aims to strengthen the reporting of environmental, climate, and economic stories across the country.

Environmental journalism in Sri Lanka has traditionally given significant attention to natural disasters and their impacts. This initiative provides an opportunity for journalists to broaden this coverage by exploring a wider range of environmental issues, including climate finance, green investment, sustainable development, biodiversity, and the policy and economic dimensions of the green transition.

The programme will support journalists in strengthening their technical and investigative skills to explore these issues in greater depth and produce sustained, evidence-based reporting. Participants will be equipped with tools to analyse complex climate finance issues, examine public policies, and follow the flow and impact of green investments.

For Sri Lanka, ‘green transition’ is not an abstract concept; it is a pathway to urgently needed macroeconomic stability and sustainable growth. However, for this transition to succeed, the public must be well-informed, and institutions must be held accountable.

By empowering reporters to translate highly technical financial and governance concepts into accessible public-interest narratives, this project ensures that everyday citizens understand how green policies impact their livelihoods, energy prices, and communities. Crucially, it aims to mainstream the lens of ‘just transition’ and gender equity by encouraging the voices and perspectives of women and vulnerable populations to be heard, considered, and taken into account in the national environmental discourse.

The programme is designed to deliver high-impact, nationwide action. Implemented by Expertise France (EF), in partnership with Canal France International (CFI), the Sri Lanka Press Institute (SLPI), and the Ministry of Mass Media as the primary institutional beneficiary, it moves beyond traditional classroom-based learning.

Key highlights of the initiative include:

Trilingual Foundation Training: Intensive capacity building for 60 journalists across Sinhala, Tamil, and English media to ensure nationwide reach and inclusivity.

Mentored “Story Labs”: The rollout of six intensive Story Labs where journalists will receive direct editorial mentoring to investigate, produce, and publish high-quality, data-driven green transition stories

Youth Outreach: Engaging journalism students and young media practitioners through university and youth activities to develop stories on green transition and public policy issues.

Learning and Sharing Networking Event: Bringing together journalists, experts, policymakers, and key stakeholders to share learning, showcase stories produced through the programme, reflect on knowledge gained, and develop future story ideas on green transition issues.