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Talks planned for India to restructure $1.3-billion credit line to Lanka

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Indian High Commissioner Gopal Baglay Friday called on new Prime Minister Ranil Wickremesinghe to personally extend his and his county’s good wishes and reiterate support. Post the closed door meeting Baglay in a tweet said “discussed continued India-Lanka cooperation for economic recovery and stability in Sri Lanka through democratic processes towards the well being of all the people of Sri Lanka.”

BY S VENKAT NARAYAN     

Our Special Correspondent

 NEW DELHI, May 14: India will hold talks with Sri Lanka for restructuring the island nation’s $ 1.3 billion Line of Credit (LoC), seeking to assist its southern neighbour battling a severe economic crisis.

The Indian government backs the LoC from Export Import Bank (EXIM Bank).

The exact terms of the loan will be finalized in talks that the Indian government will conduct and the EXIM Bank will participate in.

Repayments on credit have been done till the end of March 2022. The restructuring is likely to involve deferment on repayment principal, said sources in EXIM Bank.

In February 2022, India’s EXIM Bank and Sri Lanka’s government signed a $500-million LoC agreement to help Colombo to cope with its current fuel shortages.

India said this week it is “fully supportive” of Sri Lanka’s democracy, stability and economic recovery, responding after that country’s Prime Minister Mahinda Rajapaksa quit amid massive protests against the raging economic crisis.

On April 12, the Sri Lankan government said it will suspend debt servicing on its foreign-currency obligations amid steeply rising external funding pressures.

Standard & Poor’s has downgraded Sri Lanka’s long-term foreign currency sovereign credit rating to ‘SD’ (selective default) from ‘CC’.

Meanwhile, EXIM Bank has posted a 190.5 per cent increase in net profit at INR7.38 billion on FY22 from INR2.54 billion in FY21. Its loan book grew by 13.26 per cent Year on Year to INR1.17 trillion at the end of March 2022. The capital adequacy improved to 30.49 per cent in March 2022 from 25.89 per cent a year ago.

EXIM Bank Managing Director Harsha Bangari said the bank raised foreign currency resources aggregating $2.05 billion and rupee resources aggregating INR190.46 billion in FY22.

In FY23, the institution plans to raise about $3 billion, depending on the market conditions. About $1-1.5 billion will be raised by issuing long-term securities and balance through short-term loans. The domestic borrowings will be around INR200 billion in 2022-23, Bangari said.



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Death toll 635 as at 06:00 AM today [09]

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The Situation Report issued by the Disaster Management Center at 06:00 AM today [09th December] confirms that 635 persons have died due to floods and landslides that took place in the country within the past two weeks. The number of persons that are missing is 192.

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Cyclone Ditwah leaves Sri Lanka’s biodiversity in ruins: Top scientist warns of unseen ecological disaster

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Prof Wijesundara

Sri Lanka is facing an environmental catastrophe of unprecedented scale in the wake of Cyclone Ditwah, with leading experts warning that the real extent of the ecological destruction remains dangerously under-assessed.

Research Professor Siril Wijesundara of the National Institute of Fundamental Studies (NIFS) issued a stark warning that Sri Lanka may be confronting one of the worst biodiversity losses in its recent history, yet the country still lacks a coordinated, scientific assessment of the damage.

“What we see in photographs and early reports is only a fraction of the devastation. We are dealing with a major ecological crisis, and unless a systematic, science-driven assessment begins immediately, we risk losing far more than we can ever restore,” Prof. Wijesundara told The Island.

Preliminary reports emerging from the field point to extensive destruction across multiple biodiversity-rich regions, including some of the nation’s most iconic and economically valuable landscapes. Massive trees have been uprooted, forest structures shattered, habitats altered beyond recognition, and countless species—many endemic—left at risk.

Among the hardest-hit areas are the Royal Botanical Gardens, Peradeniya, Seethawaka Botanical Garden, Gampaha Botanical Garden, and several national parks and forest reserves under the Department of Wildlife Conservation and the Forest Department. Officials describe scenes of collapsed canopies, destroyed research plots, and landscapes that may take decades to recover.

Prof. Wijesundara said the scale of destruction demands that Sri Lanka immediately mobilise international technical and financial support, noting that several global conservation bodies specialise in post-disaster ecological recovery.

“If we are serious about restoring these landscapes, we must work with international partners who can bring in advanced scientific tools, funding, and global best practices. This is not a situation a single nation can handle alone,” he stressed.

However, he issued a pointed warning about governance during the recovery phase.

“Post-disaster operations are vulnerable to misuse and misallocation of resources. The only safeguard is to ensure that all actions are handled strictly through recognised state institutions with legal mandates. Anything else will compromise transparency, accountability, and public trust,” Prof. Wijesundara cautioned.

He insisted that institutions such as the Department of Wildlife Conservation, the Forest Department, and the Botanical Gardens Department must take the lead—supported by credible international partners.

Environmental analysts say the coming months will be decisive. Without immediate, science-backed intervention, the ecological wounds inflicted by Cyclone Ditwah could deepen into long-term national losses—impacting everything, from tourism and heritage landscapes to species survival and climate resilience.

As Sri Lanka confronts the aftermath, the country now faces a critical test: whether it can respond with urgency, integrity, and scientific discipline to protect the natural systems that define its identity and underpin its future.

By Ifham Nizam

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Disaster: 635 bodies found so far, 192 listed as missing

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The Disaster Management Centre (DMC) has categorised 192 persons as missing as search operations were scaled down in flood-affected areas.

The death toll has been placed at 635, while the highest number of deaths was reported from the Kandy District. Kandy recorded 234 deaths.

According to the latest data, a total of 1,776,103 individuals from 512,123 families, in 25 districts, have been affected by the impact of Cyclone Ditwah.

The DMC has said that 69,861 individuals from 22,218 families are currently accommodated in 690 shelters established across the country.

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