News
Japan cautious on reviving stalled projects, seeks faster debt deal with China
Japan has asked Sri Lanka to secure a debt restructure deal with China before any discussion on reviving the Light Rail Transit (LRT) project scrapped by former president Gotabaya Rajapaksa, diplomatic sources said.
Foreign minister Yoshimasa Hayashi made it clear during his brief visit to Colombo last week for talks with President Ranil Wickremesinghe that priority must be clinching a debt deal with Beijing before the end of August.
Sri Lanka must have a debt treatment plan ready before the second review of the IMF bailout finalized in March. The release of the second tranche of some $330 million depends on a credible debt restructure plan acceptable to all local and foreign creditors.
“I conveyed my expectations for further progress in the debt restructuring process and stressed the importance of a transparent and comparable debt restructuring that involves all creditor countries, Hayashi said in a statement.
He also welcomed Sri Lanka’s moves to tackle corruption, a key demand of the IMF bailout program.
Sri Lanka wanted more Japanese private investments and a quick revival of the LRT project which was initially estimated to cost about $1.5 billion and fully funded through highly concessionary 40-year loan from Japan. The loan carried an interest rate of 0.1 percent and a 12-year grace period.
The then secretary to Rajapaksa, Punchi Banda Jayasundara and Treasury Secretary Sajith Attygalle who championed the scuttling of the LRT said the project was “not cost effective.”
Officials at the time said they wanted to go with a Chinese developer who had offered to build the LRT at a lower price. However, a “viability charge” in the Chinese proposal meant that Colombo would have end up paying much more than for the Japanese LRT.
Relations between Colombo and Tokyo strained following Rajapaksa’s abrupt cancellation of the LRT in September 2020.
During Hayashi’s visit, the Japanese delegation made it clear that they were cautious about re activating any of the projects given Colombo’s track record of policy inconsistency.
Japan’s Foreign ministry spokeswoman Yukiko Okano also underlined their concerns about opaque Chinese funding and mega vanity projects that got Sri Lanka into a major economic crisis.
Asked if Japan will agree to Colombo’s request for a quick reactivation of the LRT as well as the airport expansion, the central expressway projects, Okano made it clear that they were all “stopped.”
“We will keep discussing (about) these projects with the Sri Lankan government, but in order to make a decision on the new lending for example, then it has to come after the debt restructuring.
“And I think private sector is also watching very carefully how this restructuring process goes forward, because otherwise they also have a stake in this.”
Japan’s main concern about China’s growing presence in Sri Lanka was its funding of mega projects and not so much the increased naval presence in the Indian Ocean region.
“In this region, I think it’s more to do with the big infrastructure projects and we have nothing against you know, Chinese helping other countries to build infrastructure, but as I said, these infrastructure financing has to be in accordance with the international rules, for example on transparency of the terms of the loans or, for example, the labour.
“Using the local labour or using local materials or, you know those standards and as long as their projects comply with these international standards, I think we are fine. But if not, then we have a concern.
“I’m not naming a specific project, but I think this concern is shared not only with the OECD countries, but maybe with the recipient countries too.”
News
War-linked power crunch pushes Lanka to four-day week
(AFP ) Millions of Sri Lankans enjoyed a government-ordered extra day off on Wednesday as the island nation battles an energy crisis triggered by the Middle East war.
Rail and bus stations were largely deserted as most state institutions, schools and universities shifted to a four-day working week.
“I am really enjoying the mid-week break because it is a fully paid holiday,” said housing ministry official Prarthana Perera, 40.
Her office, like many government departments in Battaramulla — the capital’s main administrative hub — was closed.
Banks operated on shorter hours, while many private firms introduced work-from-home arrangements, industry bodies said, urging members to help curb energy use.
Sri Lanka has already raised fuel prices by a third since the United States and Israel began bombing Iran, triggering retaliatory attacks that have disrupted global energy supplies.
About half of Sri Lanka’s electricity is generated by coal and diesel.
The cabinet has set a target of cutting electricity consumption by 25 percent, ordering street lamps switched off and asking civil servants to use table fans instead of power-hungry air conditioners.
Shipping executive Varuna Perera welcomed the day off but was uncertain of its impact.
“It will not be effective in the long term,” Perera said. “But the government will have a breather for a couple of weeks, to save some energy.”
Environmental lawyer Ravindranath Dabare was more sceptical, arguing the move would have limited impact as those needing government services would have to travel on other days.
“We can’t close hospitals… the doctors and health officials can’t work from home,” Dabare said.
The influential Chamber of Commerce said it had urged members to follow government guidelines or adopt remote work where possible, if
“business continuity can be effectively maintained”.
And Sri Lanka’s leading technology firm WSO2 made working from home mandatory for its 500 employees on Tuesdays and Thursdays.
“This is our way of contributing to the national cause,” WSO2 spokeswoman Zaithoon Bin-Ahamed told AFP.
Media Minister Nalinda Jayatissa said the government had yet to assess the impact of the energy-saving measures, but expected broad compliance.
Sri Lanka has been running coal and diesel power plants at full capacity to meet electricity demand.
President Anura Kumara Dissanayake urged electric vehicle owners not to charge their cars overnight, as they would add a surge to an already strained grid.
He asked motorists instead to plug in during the day, when excess solar power is available.
Officials said the country’s diesel stocks are sufficient to last until mid-May, while petrol could last a week longer.
The government is seeking oil supplies from Russia and hopes to tap Iran for crude oil, Jayatissa said.
Political commentator Kusal Perera said the crisis also presented scope to boost productivity across the state sector.
“They must use this opportunity to have a national dialogue on improving productivity,” he told AFP. “We have to address the inefficiency in the public sector.”
By Amal JAYASINGHE
News
Lanka to swelter through April and May, Met Dept warns
Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology has warned.
Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.
Wijemanna explained that the island is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.
He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.
Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.
News
Pathfinder Foundation launches Proposal for a National Security Strategy for Sri Lanka
The Pathfinder Foundation launched a proposal for a National Security Strategy for Sri Lanka—2026, emphasising the urgent need for a comprehensive and state-led national security framework.
The proposed strategy contends that an effective National Security Strategy (NSS) must be based on a robust National Security Policy, which provides the long-term framework for protecting the country’s sovereignty, stability, and development in an increasingly uncertain global environment. The Pathfinder Foundation’s initiative, developed through consultations with academics, retired military officers, legal experts, and policy specialists, seeks to stimulate national discussion and support the formulation of an official state policy. The launch event was attended by those involved in preparing this proposal, heads of local think tanks, and media representatives.
Chairman of the Pathfinder Foundation, Amb. (Retd.) Bernard Goonetilleke, in his presentation of the report, emphasised that many major and middle powers, including the United States, China, the Russian Federation, the United Kingdom, Germany, Sweden, and Japan, have developed formal national security strategies. He pointed out that several South Asian and Southeast Asian countries, including India, Pakistan, Bangladesh, Nepal, Malaysia, Thailand, and Singapore, also rely on NSS, whereas Sri Lanka still lacks a single, officially adopted National Security Policy (NSP) or a National Security Strategy to guide long-term strategic planning.
The report highlights key strategic priorities across several sectors, including good governance, internal security, cybersecurity, energy and food security, health security, human capital development, and environmental protection. It also employs the internationally recognised DIME framework (Diplomacy, Information, Military, and Economy) to guide the coordinated use of national power in advancing Sri Lanka’s interests. Among its main institutional recommendations are establishing a fully legislated National Security Council, creating a National Security Secretariat, and officially appointing a National Security Advisor to coordinate policy and implementation across the government.
The full text of the report is available https://pathfinderfoundation.org/publications, and your comments a/ welcome via pm@pathfinderfoundation.org
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