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Debt restructuring: Sajith alleges Prez failed to secure optimal deal

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Sajith

By Saman Indrajith

Opposition and SJB leader Sajith Premadasa told Parliament yesterday (02) that the government had failed to secure the optimal deal in the debt restructuring process.

Soon after the President made a special statement to the House, Premadasa said that the government haD failed to secure the best possible deal in the debt restructuring process. The globe-trotting President could have made use of his visits to secure the best possible deal to Sri Lanka. “The President says that the government has assured the best interests of this country but there are serious issues with regard to financial discipline and deliverance and promises it makes,” Premadasa said.

The government had not yet been able to provide thE House with bi-lateral agreements it had entered in relation to the debt-restructuring process, Premadasa said..

The President’s statement that Sri Lanka had been able to enter into agreements to restructure debt earlier than other countries that had been in similar economic crises was not true. Countries such as Ghana, Argentina, Ecuador, Barbados, Belize, Mongolia and Chad succeeded in entering into debt-restructuring agreements before Sri Lanka, said the Opposition Leader.

“We expected the President to furnish all necessary information pertaining to the debt-restructuring agreement. However, there was no such presentation. We are waiting to see whether Sri Lanka has been able to restructure the debts in a manner favourable to this country. We are yet to find whether the incumbent government could fare better than Argentina, Ghana and Ecuador in the debt restructuring agreement,” Premadasa said.

“The President, in his statement to the nation, said that we’ll start repaying the loans in 2028. There was a Debt Sustainability Analysis by the IMF in March 2023 stating that Sri Lanka would be able to start the process of repaying its debts from 2033. We demand to know how and why the government could not keep it to 2033 and reasons for starting this in 2028. We think that this is owing to failures that took place during the negotiations.

“The President speaks of a success in the debt-restructuring process without revealing true figures. For example, he stated that the debts we owed to the China Exim Bank was at US $ 3.9 billion and that the bank had agreed to restructuring. But he did not mention anything about the US $ 13.8 million debt we owed to the Chinese Government or US $ 538 million debt to the China Development Bank.

Premadasa said that the government’s debt restructuring process had double standard policy with regard to International Sovereign Bond (ISB) holders and the poor people in the country. It seems that the government has succumbed to the threats and pressure of the ISB holders. In 2022, it was clearly stated that the government would not restructure the local debts. However, in the face of the ISB holders’ threats, the government went for that. It did not even touch the super-rich primary bond dealers but pick-pocketed the monies in the pension funds and EPF. In October 2023, the government announced that it would not implement Value Recovery Instruments. However, after ISB holders exerted pressure, the government implemented Macro-link Bonds. It promised transparency and comparability for domestic bond holders and spoke of equal burden sharing. But there was no burden sharing by ISB holders; instead the government pick-pocketed the poor people’s money in pension funds and EPF.

“The President, in his statement, questioned the achievements this government has been able to make, good or bad. I am asking whether increase of malnutrition is good or bad, whether the brain drain is good or bad, whether the increase of unemployment good or bad, whether the increase of poverty is good or bad, whether the closure of MSMEs in their hundreds of thousands is good or bad, whether the entrepreneurs leaving their professions is good or bad, whether the collapse of construction industry is good or bad, whether the children faint in schools because they have no food is good or bad,” Premadasa demanded to know.



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Colombo Law Society objects to judges’ retirement age move

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…Urges President not to undermine public confidence in independence of judiciary

The Colombo Law Society has urged President Anura Kumara Dissanayake not to proceed with any constitutional amendment to extend the retirement age of Supreme Court and Court of Appeal judges, warning that such a move could undermine public confidence in the independence of the judiciary.

In a letter dated July 2, 2026, the Society said its Executive Committee had unanimously resolved to convey its concerns following reports of a proposal to increase the retirement age of judges of the superior courts.

The Society said any amendment affecting the tenure of sitting judges should be approached with caution, adding that public confidence in the independence of the judiciary must be safeguarded.

Full text of the letter: The Executive Committee of the Colombo Law Society, at its duly convened meeting held on 25 June 2026, deliberated extensively on the reported proposal to increase the retirement age of Judges of the Court of Appeal and the Supreme Court.

Having carefully considered the matter, the Executive Committee unanimously resolved to convey its concerns to Your Excellency and to express its support for the position taken by the Bar Association of Sri Lanka in its letter addressed to Your Excellency, dated 25 May, 2026.

The Colombo Law Society recognizes and appreciates the invaluable contribution made by members of the higher judiciary to the administration of justice in Sri Lanka. However, we respectfully take the view that any alteration to the constitutionally established retirement age of Superior Court Judges must be approached with the utmost caution and only after broad consultation with all relevant stakeholders.

The existing retirement ages of Judges of the Court of Appeal and the Supreme Court have remained unchanged since the promulgation of the 1978 Constitution. Any departure from this long-standing constitutional framework, particularly where it affects serving judges, may give rise to public concern and perceptions that could undermine confidence in the independence and impartiality of the judiciary.

The independence of the judiciary is one of the cornerstones of the Rule of Law and democratic governance. Equally important is the public perception of such independence. The judiciary must not only be independent in fact but must also be seen to be independent and free from any appearance of influence or accommodation.

The Colombo Law Society further notes that the number of Judges of both the Court of Appeal and the Supreme Court was increased through constitutional reform in 2020. In those circumstances, questions naturally arise as to whether there exists a compelling institutional necessity to alter the retirement age of Superior Court Judges at this juncture.

We respectfully submit that constitutional amendments relating to the judiciary should be undertaken only after careful consideration of their long-term impact on judicial independence, public confidence, and the constitutional framework of the Republic.

Accordingly, the Colombo Law Society respectfully urges Your Excellency to give the fullest consideration to the concerns expressed by the legal profession and to refrain from proceeding with any constitutional amendment seeking to extend the retirement age of Judges of the Court of Appeal and the Supreme Court.

We remain confident that Your Excellency will continue to uphold and safeguard the independence, integrity, dignity, and public confidence in the judiciary, which remain essential to the preservation of the Rule of Law and democratic governance in Sri Lanka.

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Freedom 250: US Embassy celebrates America’s 250th Independence Day through magic of American cinema

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Fireworks illuminate the Colombo night sky on Thursday as the US Embassy in Sri Lanka commemorated America’s semiquincentennial—the 250th anniversary of the United States’ independence.

The US Embassy in Sri Lanka commemorated America’s semiquincentennial—250 years of independence—with Chief Guest, Minister of Health and Mass Media Nalinda Jayatissa, and hundreds of Sri Lankan partners, government officials, business leaders, diplomats and friends of the United States, at a Freedom 250 celebration honouring the enduring power of freedom through the lens of American cinema. The July 2 celebration highlighted the ideals that have shaped the United States for two and a half centuries—individual liberty, self-government, freedom of expression, and the belief that free people can dream, create, and shape their own future. The Embassy grounds were transformed into an immersive cinematic experience, celebrating how American films have reflected those freedoms while inspiring audiences across generations and around the world, including in Sri Lanka.

Welcoming guests to the celebration, Chargé d’Affaires Jayne Howell reflected on the profound connection between American freedom and cinematic storytelling. “Tonight, we celebrate 250 years of American independence by honouring one of our nation’s greatest gifts to the world—the art of cinema,” she said.

“For more than a century, American filmmakers have used their creative freedom to craft stories that resonate across every border and culture. From the opening of the world’s first dedicated movie theater in New Orleans, in 1896, to the groundbreaking animation of Snow White, from the sweeping epics like The Godfather to the technological marvels of Avatar, Star Wars and Jurassic Park, and classics like The Bridge on the River Kwai—filmed in Sri Lanka and forever linking the island to Hollywood history—our films reflect the very freedoms we celebrate today—the freedom to dream boldly, to question deeply, and to imagine new possibilities.”

CDA Howell continued, “As we share this cinematic journey with our Sri Lankan friends—fellow champions of democracy and freedom—we’re reminded that the best American stories are universal stories. They speak to the courage we see in The Wizard of Oz, the unity we witness in The Avengers, the wonder we experience through E.T., the spirit of exploration and achievement captured in films like Apollo 11, and the resilience we admire in Forrest Gump. Tonight, we celebrate not just American cinema, but the freedom that makes it possible—the freedom to tell any story, to show America at its best and its most complex, and to believe that movies can change how we see ourselves and each other. That freedom is what we honour on this 250th anniversary and the enduring values that will guide us forward.”

The evening opened with a stunning visual spectacle: rooftop screens displayed on the Embassy building celebrating 250 years of American independence and commemorating the signing of the Declaration of Independence on July 4, 1776. The centerpiece was an open-air screening, under the stars, featuring carefully curated clips that traced American cinema’s evolution—from silent films that established visual storytelling techniques still used today, through Disney’s Snow White and the Seven Dwarfs (the first full-length animated feature), The Matrix’s groundbreaking “bullet time” effects, to Christopher Nolan’s The Dark Knight, which redefined superhero cinema as a vehicle for exploring complex questions about justice and society.

The celebration concluded with fireworks illuminating the Colombo sky as the III Marine Expeditionary Force Band, the US Marine Corps’ forward-deployed band in the Indo-Pacific region, based in Okinawa, Japan, performed a montage of American songs that have inspired generations. Guests enjoyed a menu featuring high-quality US beef and other American food and beverages, showcasing the global reputation of American agricultural exports.

As the United States marks 250 years of independence, Freedom 250 celebrates the enduring idea that has defined America since 1776—that freedom unlocks human potential, fuels creativity and innovation, and empowers individuals to shape a better future. Through education, trade, investment, security cooperation, and the enduring ties between our people, the United States and Sri Lanka continue to strengthen a partnership built on opportunity and shared democratic values.

The US Embassy extends its sincere gratitude to the generous sponsors whose support made this year’s Independence Day celebration possible, including Diamond Sponsors Brandix, Hayleys, Hirdaramani, MAS Holdings, Mastercard, RM Parks, and Visa, along with our other valued partners.

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CA dismisses application filed by Yoshitha seeking to quash conspiracy charge in money laundering case

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The Court of Appeal yesterday dismissed a revision application filed by Yoshitha Rajapaksa seeking to quash a conspiracy charge in the money laundering case, pending before the Colombo High Court.

Rajapaksa had challenged the conspiracy count in the indictment filed by the Attorney General, under the Prevention of Money Laundering Act, contending that the charge was not legally maintainable.

A Court of Appeal Bench, comprising Justices Amal Ranaraja and Dr. Sumudu Premachandra, rejected the application, ruling that the conspiracy charge could proceed before the Colombo High Court.

The ruling clears the way for the High Court to continue hearing the money laundering case, filed by the Attorney General against Rajapaksa.

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