News

Private creditor debt restructuring to be completed by March

Published

2 years ago

2024/01/27

Dr. P. K. G. Harischandra

From June to November 2023, the Central Bank had reduced the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by about 6.5 percent, Assistant Governor of the Central Bank of Sri Lanka, Dr. P. K. G. Harischandra said.

That move had been made in response to the successful management of inflation, prompting the Central Bank to ease its previously tight monetary policy.

“Simultaneously, there was a gradual decrease in interest rates; however, this decline occurred at a measured pace. The transmission of policy rate adjustments to the money market is not instantaneous, requiring a certain period for full effect. During the Monetary Policy Board meeting conducted on January 22, 2024, the Central Bank of Sri Lanka opted to maintain the existing policy interest rates. This decision was based on the belief that additional time was needed for the money market to fully incorporate the earlier 6.5 percent reduction in interest rates, thus influencing a more comprehensive adjustment.,” he said.

Harischandra mentioned a decline in both lending rates and interest rates associated with Treasury bills. The Assistant Governor further indicated that forthcoming adjustments would involve a reduction in both lending rates and deposit interest rates.

“In December 2023, the inflation rate stood at approximately four percent. Interest rates for deposits persist in the range of nine to 10 percent, providing depositors with continued value for their savings. With the ongoing economic recovery, there is an opportunity to bolster it by lowering lending rates. This, in turn, would facilitate more accessible borrowing and encourage increased investment. Notably, the fourth quarter of 2023 marked a positive turn, breaking a streak of six consecutive quarters of negative growth, signaling encouraging economic progress.,” he said.

Harischandra emphasized the necessity of reducing lending rates to sustain the current positive economic momentum. He noted that the Central Bank of Sri Lanka aims to keep inflation at approximately five percent, enabling interest rates to range between eight and 10 percent. This strategy aims to provide depositors with the benefit of seeing an appreciation in their funds, while simultaneously offering entrepreneurs the opportunity to borrow at more affordable rates.

Harischandra said in late 2022, inflation was at 70 percent. In January 2024, inflation will be around seven percent because of the hike in the Value Added Tax (VAT). Inflation can happen because of supply-side and demand-side pressures.

“There is no inflationary pressure stemming from demand because the purchasing power of the population remains low. Over the course of 2022 and 2023, the prices of goods experienced a considerable increase of about 70 percent. While the value of the rupee saw a substantial 45 percent decline in 2022, it only appreciated by 12 percent in 2023. Currently, exchange rates are stable, and there is no inflationary pressure arising from that aspect. Additionally, with the price of crude oil staying below 80 dollars per barrel, we are confident that even if inflation reaches seven percent in January, it will likely be a temporary spike,” he said.

The Assistant Governor noted that an inflation rate of approximately five percent is considered typical in emerging markets and is viewed as an indicator of economic well-being. Nevertheless, the growth of purchasing power among the populace will require some time.

He further said, “a considerable number of individuals are opting to leave the country, prompting many companies to increase salaries. This adjustment has become necessary to retain the essential labour force for their operations. However, it’s important to clarify that these salary hikes may not be deemed sufficient.”

Harischandra said they had restructured domestic debt. International debt comes in two categories, i.e., international sovereign bonds and bilateral debt. Significant progress has been made in restructuring bilateral debt..

“Paris Club, China and India have agreed to help us. We now have to deal with the international sovereign bonds. We are working with the IMF and debt advisors. Furthermore, we hope to come to preliminary agreements by the end of this quarter,” he said.

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Interpol crackdown: Sri Lankan man among seven arrested in UK for human smuggling

Published

7 hours ago

2026/02/3

Sahan Weerasooriya

Suspect also wanted for child abuse: Extradition process underway

Among seven persons arrested in the United Kingdom for people smuggling is a Sri Lankan wanted by French authorities for the rape of a child.

UK’s National Crime Agency said that it collaborated with police and international partners in INTERPOL’s largest-ever operation targeting people smuggling and human trafficking.

Operation Liberterra III was led by the NCA’s Joint International Crime Centre (JICC) and targeted offenders wanted for a range of crimes who had entered the UK illegally.

Officers from the National Extradition Unit at the JICC made five arrests across London, Bedfordshire, Merseyside and Greater Manchester.

Those arrested included:

A 30-year-old Sri Lankan man arrested in Liverpool and wanted in France for the rape of a child

A 38-year-old Iraqi man wanted for rape in Germany arrested in Greater Manchester

A 29-year-old Egyptian man wanted for murder in France arrested in Bedfordshire

A 41-year-old Syrian man arrested in Greater Manchester and wanted in Germany for organising illegal small boat crossings

A 30-year-old Bulgarian man arrested in London for human trafficking and wanted in France

Greater Manchester Police teams also made two arrests across the county during the operation which was held between 10 and 21 November last year.

A 23-year-old Ukrainian man wanted in Germany for sexual exploitation

A 31-year-old Romanian man wanted in Romania for sexual exploitation

Extradition proceedings are underway for all seven suspects.

The NCA website quoted its Deputy Director of International Rick Jones as having said: “This global operation is a prime example of our commitment to working closely and effectively with international partners to tackle people smuggling and human trafficking.

“We were proud to host the European Co-ordination Unit and used a range of our specialist capabilities to gather and disseminate intelligence to law enforcement agencies across the world, and to enable our officers to identify, locate and detain offenders wanted overseas.

“As a result, seven suspects wanted in connection to serious offences have been removed from our communities and extradition proceedings are ongoing to ensure they face justice.”

Globally, 3,744 suspects were arrested including 1,800 for human trafficking and migrant smuggling offences.

News

Sri Lanka calls on global consular corps to protect nationals amid fishermen incident

Published

7 hours ago

2026/02/3

Sahan Weerasooriya

Foreign Minister Vijitha Herath accepts a token of appreciation

Addressing a gathering of the world’s consular community, Foreign Minister Vijitha Herath issued a pointed, diplomatic request yesterday for the enhanced protection of Sri Lankan citizens abroad, a message delivered against the backdrop of a recent alleged assault on Sri Lankan fishermen by the Indian Coast Guard.

The occasion was the inauguration of the FICAC 2026 South Asia Regional Conference, hosted by The Association of Consuls in Sri Lanka together with the World Federation of Consuls (FICAC) at Cinnamon Life.

Minister Herath, while outlining Sri Lanka’s foreign policy of “non-alignment, strategic autonomy, and constructive engagement,” directly tasked the honorary consul community with a critical role. “I request the honorary consul community to maintain a continued and enhanced focus on safeguarding the rights and welfare of Sri Lankan nationals in respective jurisdictions,” he stated.

The appeal carries significant weight following recent media reports which detailed claims by a group of fishermen from Wennappuwa that they were assaulted by uniformed Indian Coastal Guards. The incident, alleged to have occurred partly in Sri Lankan territorial waters, resulted in hospitalisations and has been referred to the Foreign Affairs Ministry and Navy for investigation. Minister Herath’s carefully calibrated statement before the international audience underscored the government’s proactive but diplomatic approach to citizen welfare overseas.

Prime Minister Harini Amarasuriya, who also addressed the inaugural session, framed Sri Lanka as a nation on a resurgent path. She thanked FICAC for selecting Sri Lanka, noting the choice reinforces the country’s returning credibility under President AKD’s administration.

“Fiscal management is in good control with contained inflation and increased reserve levels and global confidence is returning as the country is moving towards stability, expanded economic activity and inclusive growth,” the Prime Minister stated. She also acknowledged the severe challenge posed by climate change, citing Cyclone Ditwah, and thanked the international community for its support during the disaster, which helped quickly revive the tourism sector.

Both leaders positioned the consular network as indispensable partners in Sri Lanka’s recovery and global re-engagement. Minister Herath emphasised their role in bridging “governments, businesses and communities,” while the Prime Minister stated such forums help reconsolidate the support of global actors.”

The three-day FICAC conference brings together consular officials from across South Asia, focusing on their unique role in facilitating diplomacy, trade, and legal cooperation outside traditional embassy channels.

By Sanath Nanayakkare

News

Korean boost for Thriposha programme: Partnership worth USD 10 mn

Published

7 hours ago

2026/02/3

Sahan Weerasooriya

The Korea International Cooperation Agency (KOICA) has reached agreement with Sri Lanka to strengthen the country’s Thriposha nutrition programme through climate-resilient, locally sourced food systems.

According to the Korean Embassy here the agreement formalised a USD 10 million partnership that would enhance domestic production of high-quality maize, reduce reliance on imports, and reinforce the sustainability of Sri Lanka’s flagship nutrition intervention for children and mothers. The agreement in this regard reflected the shared commitment of the Republic of Korea and Sri Lanka to advancing inclusive, resilient, and sustainable development outcomes, the Embassy stated.

The agreement was signed in the presence of the Ambassador of the Republic of Korea to Sri Lanka Ms. Miyon Lee, the Minister of Rural Development, Social Security and Community Empowerment Dr. Upali Pannilage, Country Representative, World Food Programme (WFP) Philip Ward, and senior representatives from the Ministry of Agriculture, Ministry of Health, Ministry of Trade, Sri Lanka Thriposha Limited, demonstrating the commitment by all relevant stakeholders of this unique project.