Business
Journey ahead for Sri Lanka is not a bed of roses: State Minister of Finance
Sri Lanka has to raise USD 17 billion to repay its loans between 2023 and 2027
By Sanath Nanayakkare
Speaking to the media on April 15, State Minister of Finance Ranjith Siyambalapitiya hinted that debt restructuring and recovery path the country has taken is not as pleasant as it seems.
“The journey ahead for Sri Lanka is not a bed of roses and the country would have to deviate from its traditional economic norms and practices,” he said.
Meanwhile, the IMF has indicated that Sri Lanka would require USD 17 billion to repay its loans between 2023 and 2027.
Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department said at a recent press conference that the financing deficit of Sri Lanka would be about USD 24 billion during these four years, and Sri Lanka would have to raise an amount of USD 17 billion from international financial institutions.
However, State Minister of Finance Shehan Semasinghe who represented Sri Lanka at the Spring Meetings with the IMF and the World Bank held from April 10 in Washington DC, said that IMF had reiterated its support for Sri Lanka to overcome the economic crisis.
“We re-affirmed our commitment to complete the IMF programme while continuing to implement our ambitious reform agenda to achieve debt sustainability and restore economic stability. We also reiterated our dedication at this historic time to build a prosperous country with the support and trust of our international partners by building on the lessons learnt from the crisis. And the officials told me they would further extend their support to Sri Lanka for its economic stability.”
Striking a similar optimistic chord, State Minister of Finance Ranjith Siyambalapitiya said that Sri Lanka’s efforts in rebounding its economy have received international approval.
“The IMF programme that Sri Lanka has entered into is the recovery programme the international community recognizes. That is why the finance ministers of India, Japan and France said at a recent press briefing that if Sri Lanka moves ahead on this path, it won’t persist in the difficulty of unsustainable debt. So, the country is on the right track in the direction of recovery. But let me say that the journey ahead is not a bed of roses. We may have to deviate from our traditional economic norms and practices,” he said.
“Today, we have been able to get the first tranche of assistance from the IMF and we are creating the background for obtaining the second tranche. We are not lost anymore. We are on the right track having earned international confidence in our debt sustainability and reforms programme,” he said.
Meanwhile, according to Reuters, a committee of Sri Lanka’s international private creditors sent its first debt rework proposal to the country’s authorities regarding over $12 billion in bonds outstanding, according to three sources with direct knowledge of the matter.
It is the first bondholder proposal after Sri Lanka defaulted on its debt a year ago. It is a first formal step to engage with the country’s authorities, Reuters report said.
Bondholders and government officials met in Washington last week, with legal and financial advisers for both sides present.
The group of about 30 creditors included global investment companies Amundi Asset Management, BlackRock, HBK Capital Management and T. Rowe Price Associates.
Separately, the Paris Club of creditor governments said last Friday that it aimed to start negotiations to restructure Sri Lanka’s bilateral debt after a committee was set up by French, Japanese and Indian finance ministers, and representatives of Sri Lanka.
However, China – Sri Lanka’s biggest bilateral creditor- did not join the announcement.
Further according to Reuters:
Japan, India and France last Thursday announced a common platform for talks among bilateral creditors to coordinate restructuring of Sri Lanka’s debt, a move they hope would serve as a model for solving the debt woes of middle-income economies.
“To be able to launch this negotiation process gathering such a broad-based group of creditors is a historical outcome,” Japanese Finance Minister Shunichi Suzuki told a briefing. “This committee is open to all creditors,” he said, voicing hope China will join in the effort. French Director General of the Treasury Emmanuel Moulin told the briefing that the group was ready to hold the first round of talks “as soon as possible.”
Sri Lanka’s Central Bank Governor had told Reuters last week that having a single platform for talks would be a welcome move that would make it easier to discuss and share information.
Japan’s top currency diplomat Masato Kanda told reporters the group has sent an invitation to all of Sri Lanka’s bilateral creditors, including China, and hopes to hold the first round of talks at the earliest date possible.
Sri Lanka owes $7.1 billion to bilateral creditors, according to official data from its government, with $3 billion owed to China, followed by $2.4 billion to the Paris Club and $1.6 billion to India. The government also needs to renegotiate more than $12 billion of debt in eurobonds with overseas private creditors, and $2.7 billion on other commercial loans.
Business
Canada Day celebration highlights deepening Sri Lanka-Canada business ties
The vibrant celebration of Canada’s 159th National Day in Colombo brought together diplomats, government representatives, leading business executives and members of the Sri Lankan and Canadian communities, highlighting the growing strength of bilateral economic and commercial relations between Sri Lanka and Canada.
Hosted by the Canada Sri Lanka Business Convention (CanCham Sri Lanka), the event attracted one of the largest gatherings in its history, providing an important platform for business networking while celebrating the enduring friendship between the two countries.
Addressing the gathering, High Commissioner for Canada in Sri Lanka and the Maldives Isabelle Martin said Canada and Sri Lanka continue to enjoy a warm and expanding partnership built on shared values, people-to-people links, trade, investment and development cooperation.
“Canada Day is an opportunity not only to celebrate our country but also to celebrate the strong friendships and partnerships we have built with Sri Lanka.
The remarkable turnout this evening reflects the strength of those relationships and the growing collaboration between our two nations,” Martin said.
She noted that the close engagement between Canadian and Sri Lankan businesses continues to create new opportunities in trade, innovation, education, sustainable development and investment.
CanCham Sri Lanka officials said this year’s celebration was among the most successful Canada Day events ever organised by the Chamber, drawing an outstanding crowd and creating exceptional opportunities for business networking.
“What an incredible celebration of Canada Day. This was truly one of the most successful Canada Day celebrations in history, with an outstanding crowd and exceptional networking opportunities. It was wonderful to see so many distinguished guests, business leaders and community members come together,” the organisers said.
They thanked sponsors, partners, supporters and volunteers whose dedication ensured the success of the event.
The evening showcased Canada’s multicultural heritage while reaffirming the Chamber’s commitment to promoting stronger commercial links between Sri Lanka and Canada.
Guests representing a wide cross-section of industries exchanged ideas on expanding trade, investment and innovation partnerships.
Canada remains an important economic partner for Sri Lanka, with bilateral trade spanning apparel, agriculture, seafood, ICT services, education and professional services.
Canadian companies continue to explore opportunities in renewable energy, infrastructure, technology and sustainable development, while Sri Lankan exporters maintain a significant presence in the Canadian market.
Business leaders attending the celebration expressed confidence that closer collaboration between the two countries would further strengthen economic resilience and create new opportunities for investment, entrepreneurship and knowledge sharing.
The event concluded on a celebratory note, reaffirming the longstanding friendship between Canada and Sri Lanka and the shared commitment to fostering stronger business and people-to-people ties in the years ahead.
By Ifham Nizam
Business
Tokyo Cement inspires future-ready construction at BUILD BEYOND 2026 Technology Summit
Tokyo Cement hosted ‘Build Beyond 2026 Summit’, a premier knowledge-sharing conference that brought together leading academics, civil and structural engineering experts and professionals of the Sri Lankan construction industry. The event featured keynote addresses by renowned construction technology specialists, Professor Shashank Bishnoi from the Indian Institute of Technology (IIT) Delhi-Abu Dhabi, and Senior Professor Priyan Mendis from the University of Melbourne.
The summit marked the second edition of the Build Beyond Engineering Technology Summit organized by the Tokyo Cement Group, designed to foster collaboration between academia and industry while highlighting global trends, innovations, and emerging technologies in cement and concrete. This year’s discussions focused on advancements in material science that are driving more sustainable and cost-efficient construction practices.
The event drew participation from state-sector authorities, research institutions, academia, engineering students, and public and private sector organizations, creating a dynamic platform for engagement across the construction industry. A key feature of the summit was a high-level panel discussion on “Building a Resilient and Sustainable Construction Future,” featuring several distinguished industry leaders.
The panel included Eng. Nissanka Wijerathne, the Secretary General/CEO of the Chamber of Construction Industry Sri Lanka (CCI), Founder and Deputy Chairman of Civil & Structural Engineering Consultants (Pvt.) Ltd.; Eng. Shiromal Fernando, the Chairman of CTBUH Sri Lanka and Vice President of the Green Building Council Sri Lanka, Adjunct Senior Lecturer at the General Sir John Kotelawala Defense University and visiting lecturer at the University of Moratuwa; Eng.
Business
ComBank and Carmart join forces to make Peugeot and Leapmotor vehicles more accessible
Strengthening its commitment to making vehicle ownership more accessible and affordable, Commercial Bank of Ceylon has entered into a strategic partnership with Carmart (Pvt) Ltd. to offer specially structured leasing facilities for Peugeot and Leapmotor vehicles.
Formalised through a Memorandum of Understanding (MoU), the collaboration brings together the Bank’s expertise in flexible financing and Carmart’s portfolio of internationally recognised vehicle brands, creating a value-rich proposition for customers seeking to purchase new vehicles.
Under this MoU, valid until 30th June 2027, Commercial Bank will offer attractive interest rates, concessions on documentation charges, and a complimentary credit card with the first year’s annual fee waived. These benefits are designed to reduce upfront costs and ease the financial commitment associated with vehicle ownership.
With leasing facilities available through Commercial Bank’s island-wide branch network, a cross section of customers will be able to part-finance their vehicle purchases while structuring repayments to align with their income patterns, enabling greater financial flexibility.
Further enhancing the value proposition, Carmart (Pvt) Ltd. will offer customers a range of added benefits, including a complimentary full tank of fuel, free vehicle registration, and other exclusive privileges, making the overall vehicle ownership experience more rewarding.
The Bank said the partnership reflects its continued focus on delivering practical and customer-centric leasing solutions in collaboration with reputed vendors. By combining competitive rates with cost-saving concessions, the Bank aims to make vehicle ownership more attainable for both existing and new customers.
This collaboration is particularly significant in the current market context, as it offers customers the opportunity to benefit from preferential leasing terms while managing repayments in a way that suits their financial circumstances.
As a pioneer in leasing solutions, Commercial Bank continues to innovate through strategic alliances that enhance value, broaden choice, and support customers in achieving their lifestyle aspirations.
-
News5 days agoLAWASIA warns against ad hoc initiative to increase judges’ retirement ages
-
News6 days agoAnother 1,132 Sri Lankan Personnel to be deployed for United Nations Peacekeeping Missions
-
News4 days agoChamuditha to seek removal of injunction on Youtube programme
-
Features4 days agoClimate action to bring South Asia together
-
Business7 days agoMonth-end profit-takings drive stock trading; indices up
-
Features6 days agoPeople’s Bank expands digital banking network with 125th cheque deposit kiosk
-
News4 days agoCPRP alleges another death in custody, seeks protection for witness
-
News7 days agoFSP complains of irregularities in a Guinness World Record event held in Sri Lanka
