News
IMF review agreement will help Sri Lanka fast-track debt restructuring: state minister
The staff level agreement on the first review of the International Monetary Fund (IMF) programme will enable multilateral agencies to disburse remaining installments and help fast-track debt restructuring, State Minister of Finance Shehan Semasinghe said.
“This was much needed to strengthen economic stability, and after the IMF’s executive board approves [it], Sri Lanka will receive the second installment of 330 million US dollars [of the Extended Fund Facility],” Semasinghe tweeted on Friday morning after the IMF announced the agreement.
The state minister said the staff level agreement(SLA) will enable the World Bank, the Asian Development Bank and other multilateral financial institutions to disburse remaining installments.
“The SLA will enhance confidence in our economy and help fast-track the debt restructuring resolution with international partners,” he said.
The official also noted Sri Lanka is the first country in Asia that has undergone the IMF Governance Diagnostics exercise, the government having published a governance diagnostics report with the assistance of the international lender.
“We are committed to implementing key recommendations of the Governance Diagnostics Report which will help address corruption risks and strengthening accountability essential for rebuilding economic confidence and making growth more robust,” said Semasinghe.
His colleague State Minister of Finance Ranjith Siyamabalapitiya also told reporters Friday morning that consequent to the staff level agreement, Sri Lanka will be able to work other creditors such as India, Japan and the Paris Club based on the agreement.
“A report on this will be given to the IMF executive board. After the board has approved it, we can reach an agreement on the release of the second tranche,” said Siyamabalapitiya. “We have overcome the hurdle of securing the Staff Level Agreement (SLA). In simple terms, this process is going well,” he added.
The IMF said it reached the SLA with the Sri Lankan authorities on economic policies to conclude the first review of the 48-month Extended Fund Facility-supported programme. The conclusion of the review would allow Sri Lanka to access a 330 million dollars worth second tranche of the 3 billion dollar deal in financing once the review is approved by IMF management.
In addition to the staff level deal, the completion of the review also requires progress on debt restructuring.
“Macroeconomic policy reforms are starting to bear fruit and the economy is showing tentative signs of stabilisation,” the IMF said in its statement after reaching the Staff Level Agreement.
News
22A: SC urged to suspend hearing, appoint full bench
Attorney-at-Law Sugandhika Fernando, on behalf of the Vinivida Foundation, petitioned the Supreme Court yesterday (02), 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 have also been named as respondents.
The petitioner has sought to have quashed the decision of the first respondent to appoint a five-member bench, which she alleged was made in violation of the norms of public law. She also sought a bench comprising all Supreme Court judges, excluding those cited as respondents, to hear the special determination applications on the 22nd Amendment.
The petitioner further contended that Chief Justice Surasena, who is due to retire on December 1, 2026, would be the main beneficiary of the 22nd Amendment.
The hearing of the petitions continued for a second day yesterday (02) before a five-member Supreme Court bench comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli, Arjuna Obeyesekere, Sampath Abeykoon and Gihan Kulatunga.
The hearing, which commenced on Tuesday morning, continued for nearly 12 hours, until 10:30 p.m.
Solicitor General Viraj Dayaratne, appearing for the Attorney General, submitted yesterday that the Government had presented the 22nd Amendment Bill to the Constitution and the Judicature (Amendment) Bill with the objective of expanding and streamlining the country’s judicial system.
After the Solicitor General’s submissions concluded, counsel representing the petitioners requested an opportunity to respond to the Solicitor General and the intervening petitioners. However, the Chief Justice declined to allow the petitioners’ counsel to make further oral submissions, concluded the determination hearing and directed them to file written submissions instead.
News
Govt. seeks NATO assistance
Sri Lanka has formally requested assistance from the North Atlantic Treaty Organisation (NATO).
According to a press release issued by the Defence Ministry, Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha has discussed defence cooperation with NATO, with discussions focusing on military modernisation, advanced technology, cyber capabilities and disaster response.
This was during talks between AVM Thuyakontha and NATO Military Committee Chairman Admiral Giuseppe Cavo Dragone on the sidelines of the Chiefs of Defence Conference in Victoria, Canada.
During the meeting, Secretary Thuyacontha outlined Sri Lanka’s defence requirements and areas of interest, including the modernisation of military hardware, acquisition of advanced technologies, and strengthening cyber capabilities and surveillance platforms, the Ministry of Defence said in a statement.
The two sides also discussed opportunities for greater technical cooperation, including the exchange of military personnel, expanded education and training programmes, and increased sharing of expertise and information.
Humanitarian Assistance and Disaster Relief (HADR) was also identified as an area for potential cooperation. The discussions included the exchange of expertise and the effective use of unmanned aerial vehicles (UAVs) in disaster response and related operations.
Defence Secretary Thuyacontha invited NATO to further strengthen its engagement with Sri Lanka, emphasising sustained dialogue, information sharing and practical cooperation in areas of mutual interest.
News
Recent ‘Ice’ detection at the Colombo Port made on US intelligence – Embassy
The US Embassy in Colombo yesterday (02) said the recent detection of 463 kg of Crystal Methamphetamine at the Colombo Port had been made possible by intelligence provided by the US. It noted that the detected narcotics were to be moved to international markets, via Colombo.
The text of the US Embassy statement: “The U.S. Drug Enforcement Administration’s (DEA) New Delhi Country Office and Sri Lanka’s Police Narcotics Bureau (PNB) conducted a successful joint operation disrupting a Pakistan-based narcotrafficking network attempting to smuggle crystal methamphetamine through Sri Lanka to international markets.
Acting on intelligence developed by DEA’s Foreign Counterparts Unit Pakistan Anti-Narcotics Force Special Investigations Cell between August 14–29 on suspicious maritime containers moving from Pakistan to Colombo, PNB seized approximately 463 kg of crystal methamphetamine—valued at $21 million—concealed in bath towels, and arrested several suspects, including Pakistani nationals. This operation underscores the strength of the U.S.-Sri Lanka partnership in dismantling transnational criminal organizations that fund terrorism and threaten communities in both our countries.
This cooperation builds on longstanding training and technical assistance provided through the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) to the Sri Lanka Police and Customs. The United States remains committed to working with Sri Lanka and regional partners to aggressively pursue transnational criminal organizations, deny them the revenue from illicit drug trafficking, and protect our citizens from the dangers of narcotrafficking.”
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