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Cabraal says debt restructuring underway without IMF assistance

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4 years ago

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By Sanath Nanayakkare

Sri Lanka will not seek IMF assistance to restructure its debt, Central Bank Governor Ajith Nivard Cabraal has said, adding that debt restructuring is an ongoing process which the country has already undertaken.

“There are many instances where people ask us whether Sri Lanka needs to restructure its debt repayments. And I tell them, we have to manage our debt without using the word restructuring in a frivolous manner, the Central Bank Governor said on Saturday.

The Central Bank Governor made these comments addressing a virtual meeting hosted by the Centre for Banking Studies to discuss the implications of the National Budget 2022 which was presented in parliament on 12 Nov.

“Every debt situation needs restructuring on an ongoing basis. For example, if you have one debt where the interest rate is 7-8% and if you can find another source from which you can borrow at a cheaper rate, then you would be technically restructuring your debt. This is something that people sometimes don’t realize. In the same manner, you could have a debt which is of a shorter duration and if you’re able to increase the period of the debt and also ensure that your repayments are staggered even more, that is a way of restructuring your debt. If you can change the mix of your debt, from foreign currency, to local currency or between foreign currencies, that again is a type of restructuring of your debt portfolio which is to your advantage. That process is underway” he said.

“Sri Lanka has also understood that its reliance on International Sovereign Bonds (ISB) has been quite sharp and in the last few years, there has been a fairly extensive reliance on ISBs. Now this has to be re-shifted in some way so that we would have a greater control, within a long period of time. That’s why the government, very rightly, with the Central Bank is now examining the option of having government to government loan situations, central bank to central bank swaps, the examining of the possibilities of securitising remittances as well as other inflows. These are all new options the government is considering, together with the raising of non-debt creating inflows, monetisation of certain assets, increasing the value of exports and remittances. These are all natural options the Central Bank and the government are examining to ensure the debt profile is a lot more sustainable. Several of these ideas have already been put into action. We have spoken about it in the Central Bank’s Road Map as well. In the next few months, you will see a large number of these being implemented to position Sri Lanka on a debt sustainable path,” he said.

“When the proposals of the National Budget 2022 and the contents of the Central Bank’s Road Map are diligently implemented, Sri Lanka’s macro-fundamentals would look much better than now, and the country would be well on course for a 6% plus growth with stability.

“We are looking at 5% growth this year, of course on a much lower base of last year’s negative growth of 3.6%. But given the circumstances, that’s a reasonable number for this year. If the Year 2022 turns out to be a good year and Sri Lanka Tourism inflows also recover to about one-fourth of what it used to be prior to 2019, I think Sri Lanka would record an economic growth of more than 6% in 2022,” he said.

“The Central Bank will ensure that financial system stability is maintained, while growth is achieved in order to support the government to attract investments. Already there are several areas of investments planned, particularly in the Port City. The Port City Commission Bill has already been passed which gives massive opportunities for those who are looking to do business there. A study by a leading accounting firm has said that the Port City project would add 13.8 billion U.S. dollars to the country’s economy. That is a substantial number. If we can get that going, along with the organic growth of our own economy, we will have extremely useful economic indicators that would show the true potential of our economy whereby the private sector should be able to very keenly deliver on the promise of its full capacity”.


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Heat Index likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in Monaragala and Mannar districts

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39 mins ago

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2026/03/13

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 12 March 2026, valid for 13 March 2026.

Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Western, Sabaragamuwa, Southern and North-western provinces and in
Monaragala and Mannar districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on human body is mentioned in the above table and it is prepared on
the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Govt. bends rules, lowers coal standards in favour of errant company: FSP

Published

2 hours ago

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2026/03/13

By

Pubudu

The Frontline Socialist Party (FSP) yesterday accused the government of trying to award another tender to the Indian company that supplied low-grade coal to the Norochcholai Power Plant and failed to deliver the stipulated amount of coal according to schedule.

The allegation was made by the Education Secretary of the Progressive Socialist Party, Pubudu Jayagoda, during media briefing at the party office in Nugegoda last afternoon.

Jayagoda said that in September 2025, the government had awarded a tender to the Indian company Trident Chemphar to supply 25 coal shipments for electricity generation in 2026.

In August 2025, it was confirmed that the coal delivered by the company was substandard. The company also failed to supply coal on schedule. Although the first shipment was expected in the second week of December 2025, it arrived at the end of the month. By mid-March, only 12 ships had arrived, and biweekly deliveries have been disrupted, putting Sri Lanka at risk of a severe energy shortage.

On 11 March, the government called a sudden spot tender for five coal shipments. Four companies submitted bids, and they include Trident Chemphar. FSP criticiced awarding the tender to the same discredited company, saying it was unethical and could trigger a major national crisis, as the company had failed to supply quality coal reliably in the past.

Previously, coal quality was strictly measured, with a “Reject Value”. But now to help the errant supplier the term of Reject Value has now been omitted altogether and replaced with a new term ‘Minimum Value’ setting it as the minimum calorific threshold—coal producing less than 5,900 kilocalories per kilogram was rejected, and coal with ash content above 16% was also discarded.

However, the government is now reportedly lowering these standards, accepting substandard coal, and changing tender specifications to accommodate the company.

Jayagoda castigated the latest stunt coming especially at a time when the world faces war and oil shortages. Diesel meant for electricity generation is being diverted to school buses, public transport, and emergency vehicles, leaving households at risk of prolonged blackouts. Even if diesel is imported, electricity tariffs could skyrocket.

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Lanka requests diesel from India

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2 hours ago

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2026/03/13

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The Indian Ministry of External Affairs has said it is considering requests for diesel supplies from neighbouring countries, including Sri Lanka, Bangladesh and the Maldives.

Speaking to the Press Trust of India, Ministry Spokesperson Randhir Jaiswal noted that India was a major exporter of refined petroleum products in the region. He confirmed that Bangladesh had formally requested a diesel supply, which is currently under review.

He said that diesel exports to Bangladesh had largely continued since 2017, but any new allocations would take into account India’s refining capacity, domestic demand, and overall fuel availability.

Jaiswal added that similar requests from Sri Lanka and the Maldives were also being considered, with India’s own energy requirements forming a key part of the decision-making process.

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