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Debt restructuring talks with Ad Hoc Group of Bondholders back on track, thanks to IMF

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From left: State Minister of Finance Shehan Semasinghe, President’s Chief of Staff Sagala Ratnayake, Secretary to the President Saman Ekanayake and Central Bank Governoor Dr. Nandalal Weerasinghe at a meeting with the IMF in March 2024 regarding its programme for Sri Lanka

By Sanath Nanayakkare

State Minister of Finance Shehan Semasinghe said on Saturday that the government is confident about the successful progression of debt restructuring talks with Sri Lanka’s private bondholders.The state minister’s comments on the matter followed recent reports which indicated that the IMF was currently assessing the latest proposal of the Ad Hoc Group of Bondholders whose earlier proposal was not accepted by the Sri Lankan authorities.

According to a report released by First Capital Research, Sri Lanka rejected international bondholders’ proposal on 15th April 2024 to restructure more than USD 12 billion in debt. Despite ‘constructive discussions’ with the Steering Committee members of the Ad Hoc Group of Bondholders and the two sides could not reach agreement on restructuring terms.

Some of the proposal’s ‘baseline’ assessments and a lack of a contingency option in the case of continued economic weakness were the two main reasons the deal was not agreed.

The negotiations primarily focused on the bondholders’ proposal, particularly concerning the introduction of a Macro-Linked Bond (MLB).

The March proposal suggested a 20% haircut on the nominal amount of existing bonds and the April proposal increased the haircut to 28% with no haircuts on Public Debt Interests (PDIs) in both March and April proposals.

However, significant disparities arose regarding baseline parameters, risk balance, trigger tests, and the allocation of additional value in various MLB scenarios. Following discussions, the bondholders revised their proposal in April 2024 to address some of the government’s concerns.

The IMF is currently assessing the latest proposal of the Ad Hoc Group of bondholders. Also, Sri Lanka has recommenced discussions with bondholders and is optimistic on achieving a resolution regarding debt restructuring by June 2024, the report by First Capital Research stated.

State Minister Semasinghe’s comments affirmed the above backdoor details when he said,” The Paris Club and our bilateral creditors have already given their consent to restructure our debt. Meanwhile, we are confident that we can arrive at an agreement with the Ad Hoc Private Bondholders group as the second round of discussions with them is about to commence. A problematic situation in this regard won’t arise because we are being transparent with all our debt holders in how we are proposing to restructure each category of debt. Also, this procedure is embedded with another key element. That is; the finally agreed upon debt restructuring terms won’t lead to the necessity of a second round of debt restructuring in the future. We treat this as very important.”

“It has only been 18 months since Sri Lanka has achieved a semblance of stability after the economy came to a grinding halt. The economic theory put forward by the Opposition boils down to one single fact. They want the government to print money and balance the budget deficit. Their views point to the requirement of changing laws of the new Central Bank Act and reverting to money printing. Sri Lanka has already experienced the consequences of money printing in the past two years with its debilitating impact on inflation, the value of Sri Lanka rupee, the exchange rate and so on. The new CBSL Act was introduced to avoid falling into that pitfall again. So, whatever arguments the Opposition would make, the government won’t agree to money printing under whatever circumstances,” he stated.

Meanwhile, Sri Lanka gross official reserves stood at US$ 5,438 mn as at end April 2024. This includes proceeds from the People’s Bank of China (PBOC) swap arrangement worth US$ 1,400 million, which is subject to conditionalities on usability. This would mean that the country now has usable foreign reserves of US$ 4,038. This number stood at a mere US$ 20 million in mid-April 2022.



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APHNH aims to make Sri Lanka more competitive for healthcare investment

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Deputy Minister of Health and Mass Media, Dr. Hansaka Wijemuni addresses the audience

Sri Lanka private healthcare leaders recently pledged an action plan with timelines to address the practical priorities of Sri Lanka’s healthcare sector while making it more viable for local and foreign investments.

The Association of Private Hospitals and Nursing Homes (APHNH) has committed to converting recommendations from its first Healthcare Leadership Summit into a trackable outcome document with defined actions, responsibilities, and timelines, marking a shift from discussion to implementation in sector reform efforts.

The summit held on March 9 at Waters Edge, Colombo, brought together hospital leaders, policymakers, regulators, insurers, and international experts to address practical priorities for Sri Lanka’s healthcare sector.

A key outcome of the summit was APHNH’s plan to consolidate recommendations into a single, trackable charter that will outline specific actions, assign responsibilities, establish timelines, and provide periodic progress updates.

“Our objective is to bring the right decision-makers into one room and focus on what can be implemented, not only what can be discussed, ” said Raveen Wickremesinghe, President of APHNH. “We are committed to taking the inputs from today and converting them into a clear, trackable set of actions that strengthens quality, transparency and public confidence, while supporting national health priorities. “

The summit featured insights from Dr. Hafeez Rahman Padiyath, Dr. Hamdani Anver, and Chandana L. Aluthgama on scaling quality and operational discipline. A keynote and fireside discussion with Dr. Paiboon Eksangsri, President of the Private Hospital Association of Thailand, explored lessons from Thailand’s private healthcare development and conditions for making Sri Lanka more competitive for healthcare investment.

By Sanath Nanayakkare

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Atlas SipSavi Naththal Poronduwa records positive public participation, benefiting 10,000 students

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Atlas, Sri Lanka’s No. 1 learning brand, successfully concluded Atlas SipSavi Naththal Poronduwa, a national initiative that saw strong public participation in supporting children at risk of dropping out of school due to financial hardship. At a time when more than 22,000 Sri Lankan children leave school each year due to rising economic challenges, the initiative reinforced Atlas Sipsavi’s long-standing ‘No Child Left Behind’ promise by turning seasonal generosity into meaningful educational support.

The initiative reached 10,000 students, with beneficiary schools carefully selected to ensure support reached those most in need. The collected books were distributed to children at risk of dropping out, including those whose education had been disrupted by recent adverse weather, ensuring students had essential learning resources at the start of the new school term. Through its flagship Atlas SipSavi programme, the brand focused on improving access to education by providing essential learning tools, scholarships, and infrastructure to create better learning environments, bringing its purpose of ‘making learning fun’ to life in a meaningful way. As part of the initiative, the public was invited to donate schoolbooks, with each contribution matched one-for-one by Atlas. Donation boxes were placed at all Keells outlets island-wide and at Sarvodaya District Offices, making it easy for communities to take part.

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John Keells Logistics expands strategic engagement with CWIT through inter-terminal transport operations

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Representing JKLL: Lasitha Manchanayake: CEO, Dilum Liyanage: Snr. Manager - Transport Operations, Kavinda Jayasinghe: Manager - Operations and Randi Peiris: Asst. Manager - Commercial. Representing the John Keells Group: Zafir Hashim: President - Transportation, Plantations and IT Sectors and Asha Perera: CFO. Representing CWIT: Munish Kanwar: CEO, Iresh Siriwardena: COO, Devanshu Bhatia: Head of Techno Commercial, Madhuranga Wijesekara: In Charge - GATE Process, Sandun Niroshan: Duty Manager.

John Keells Logistics (Pvt) Ltd (JKLL), one of Sri Lanka’s leading third-party logistics solutions providers, has successfully expanded its operational engagement with Colombo West International Terminal (Private) Limited (CWIT), through inter-terminal transport services within the Port of Colombo. This enhanced engagement further strengthens CWIT’s efforts to improve operational efficiency, reliability, and scalability across terminal activities.

Inter-terminal transport plays a critical role in modern port operations, requiring high levels of coordination, precision, and operational discipline. JKLL’s appointment for ITT operations reflects CWIT’s confidence in the company’s demonstrated capabilities in managing complex transport operations within a high-throughput port environment.

The ITT operations are underpinned by JKLL’s technology-enabled logistics framework, incorporating real-time fleet tracking, performance monitoring systems, and data-driven operational planning. These capabilities provide enhanced visibility and control over transport movements, while ensuring compliance with established safety, productivity, and service quality standards.

The awarding of this engagement to JKLL is a testament to the successful implementation of the Inter-Terminal Vehicle (ITV) operations undertaken by John Keells Logistics at CWIT during the previous year. The ITV assignment was executed through structured operating procedures and disciplined service delivery, contributing to improved cargo movement, operational coordination, and service continuity within the terminal. The performance outcomes of the ITV operations provided the basis for the subsequent expansion of the partnership into ITT services.

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