Business

An all-party government can’t fix the problem quickly, Harsha tells foreign media

Published

4 years ago

2022/07/6

Sahan Weerasooriya

* IMF bailout is not coming any time soon

* Opposition is caught between a rock and a hard place

* We have to fix the twin deficits

* Unless there is agreement across political parties, we can’t get it done

By Sanath Nanayakkare

Opposition Member of Parliament Dr. Harsha de Silva discussed the crises facing Sri Lanka with Bloomberg Market Asia recently where he said an all-party government would have legitimacy unlike the current administration and would give hope to the people of this country, but there is no guarantee that it can fix the problem quickly.

The interview he had with Bloomberg went as follows.

Q. How close is Sri Lanka to an IMF bailout?

The issue is not about an IMF bailout. It is about restructuring Sri Lanka’s debt. We have to restructure our debt with multiple parties such as official creditors, the republic of China, private creditors, international sovereign bond holders etc. So, unless we have either a debt restructuring deal or significant progress towards a restructuring deal, the IMF will not be able to release any money under an Extended Fund Facility even if there is a staff- level agreement any time soon.

Q. You are suggesting that the IMF bailout is not coming any time soon. How will that play out in the economy?

We have hired Lazard’s and Clifford Chance to help us deal with debt restructuring. They have not really started negotiating, and already one creditor- Hamilton Reserve Bank Ltd has filed a suit in a New York federal court against the government of Sri Lanka asking for its full payment of USD 250 million due on 25th July because we have a debt standstill. ‘Significant progress’ [perhaps referring to a term in the IMF end-of-mission statement regarding the outcome of the talks in Sri Lanka] is a subjective term. The IMF is not able to lend to us. So I am thinking perhaps this is going to take at least 5-6 months before any money would start to flow in.

Q. The economic crisis is turning into a political one. What is the Opposition doing right now to perhaps take the reins of power and make things better? What would you do if you were in power and what you want to be doing because the Opposition is going to be blamed for all hardships that are going to ensue from here?

Yes, we are caught between a rock and a hard place here. What the Opposition is going to do is try and get all Opposition parties together, which I hope will happen this week. The President isn’t willing to budge despite protests across the country asking him to step down. If that happens, it’s quite possible that an all-party government can take over and start running the country. There is no guarantee that an all-party government can fix the problem quickly, but at least there will be hope that there’s a government with legitimacy both internally and externally because right now there seems to be no legitimacy for this government. That’s what we are trying to do right now.

Q. So you like to see a government of national unity but the thing is; you will not get that for the time being. So what do you think should be at the top of the economic agenda to get things going? For instance; inflation is running at almost hyper-inflation level while there’s no fuel. It sounds like a terrible situation.

Yes, this is totally unprecedented. You know until recently Sri Lanka was an upper middle income country and today we have suddenly crashed to the bottom. For us, this is unbelievable. But in a way it was expected because over a long period of time economic reforms were postponed and postponed and postponed, and we were living beyond our means. The real breakdown happened when the President cut taxes and now we are running a massive hole in our fiscal budget and also a big hole in our current account and our Balance of Payments (BOP). We have to fix this. Without fixing these two things there is no way out. So the parliament will have to agree on undertaking large fiscal consolidation measures such as increasing taxes, rationalising subsidies/expenses and so on. So unless there is agreement across political parties, we can’t get it done and there is going to be a very difficult time negotiating the debt. Unless our debt is negotiated, we are not able to get money from the IMF. We are waiting for friendly countries and neighbours to help us but it won’t take us far.

Q. How is the Opposition assessing the proposed constitutional changes? Is it willing to vote for these reforms in parliament?

We are extremely disappointed. The President said on May 11 that he would take the country back to 19th Amendment which meant that powers he grabbed from parliament in 2020 would be restored to parliament. That’s what the people wanted because he himself admitted in public that he has not been successful in managing the country. People wanted that power to be restored to parliament and to democratise the country, but the President is not going to do that in the proposed 22nd Amendment. So we are disappointed. We want the new amendment to go through, but not this way. It should be done in the way it was pledged.

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Business

Fifty ninth ADB Annual Meet opens in Samarkand amid global uncertainty

Published

7 hours ago

2026/05/4

Thilina Walpola

Guests from member countries of the ADB arrive at the venue for the 59th Annual Meeting of the Bank in Samarkand, Uzbekistan, yesterday

The 59th Annual Meeting of the Board of Governors is set to commence this week, bringing together finance ministers, central bank governors, policymakers and development leaders from across Asia and beyond at a time of mounting global economic and geopolitical uncertainty.

Addressing journalists ahead of the opening sessions, Bernard Woods, Principal Director of the Department of Communications, said the meetings were beginning at a pivotal moment for the world, with fuel markets, food security and fertilizer supply chains coming under strain due to tensions in the Middle East.

He noted that amid rising political and economic fragmentation, regional connections and stronger collaboration have become more important than ever. Against that backdrop, the key sessions and high-level discussions in Samarkand will focus on building collective resilience and strengthening cooperation among member countries.

Among the major themes expected to dominate the agenda are cross-border digital connectivity, cyber security, energy integration, capital market development, transport corridors and the responsible adoption of artificial intelligence to improve resilience and productivity in member economies. Woods also said discussions would examine how resources can be distributed more effectively to meet the unique development priorities of each country.

The official programme features a series of strategic seminars and media events over four days. The opening session of the Board of Governors will include addresses by high profile authorities and subject experts.

Other key sessions include discussions on how capital markets can drive development across Asia and the Pacific, scaling up investments for critical minerals and manufacturing value chains, digital highways for inclusive growth, and pan-Asia transport and power connectivity initiatives.

ADB President Kanda is also scheduled to hold a press conference to announce major new initiatives, while several technical briefings will examine global value chains, private sector operations, digital transformation and regional energy cooperation.

With global shocks increasingly spilling across borders, the Samarkand meeting is expected to underline a central message: that regional cooperation, practical partnerships and timely investment remain essential for sustaining growth and stability across Asia and the Pacific.

By Sanath Nanayakkare in Samarkand, Uzbekistan

Business

Nations Trust Bank completes transfer of HSBC Sri Lanka’s Retail Banking Business to its portfolio

Published

7 hours ago

2026/05/4

Thilina Walpola

Nations Trust Bank PLC (NTB) has announced that the transfer of Hongkong and Shanghai Banking Corporation’s (HSBC) Retail Banking business in Sri Lanka to NTB has officially been completed, with the acquired portfolio transitioning to NTB effective 1st May 2026.

NTB has integrated HSBC Sri Lanka’s retail banking customers into its operations, ensuring continuity of service and relationship management. The transition also includes the onboarding of HSBC Sri Lanka staff as part of the integration process. The transition has been carried out with a focus on operational stability and minimal disruption, with ongoing support in place as customers familiarise themselves with their banking arrangements at NTB.

The migration brings approximately 200,000 retail customer accounts under NTB, encompassing savings and current accounts, fixed deposits, credit and debit cards, retail loans and a high‑net‑worth customer segment that now joins Nations Trust Bank Private Banking. Through this transfer, Nations Trust Bank’s countrywide network expands to 96 branches. The transition adds seven branches to the network, with locations in Bambalapitiya, Flower Road, Union Place, and Pelawatte operating as dedicated Private Banking Centres, while three other branches are located in Nugegoda, Jaffna, and Kandy.

To support customers during the transition period, NTB has ensured that multiple access points and support channels remain available. Customers may continue to bank through the nearest NTB branch, contact NTB’s 24-hour Help Desk via +94 11 441 4151, and access digital banking services through the Nations Direct mobile app. Dedicated transfer‑related information and FAQs are also available at https://migration.nationstrust.com

Additionally, arrangements were made to extend branch support across two weekends as part of the transition programme.

Business

Amana Takaful named Sri Lanka’s Most Awarded Insurance Company

Published

7 hours ago

2026/05/4

Thilina Walpola

(L) Siva Karthigun, Chief Executive Officer – General and Gehan Rajapakse, Chief Executive Officer – Life

Amana Takaful Insurance has been recognized as Sri Lanka’s Most Awarded Insurance Company for 2026 by LMD Magazine, marking its third consecutive year of achievement. This recognition reflects the company’s consistent focus on delivering value across both its Life and General businesses, supported by customer-centric solutions, operational discipline, and continued innovation.

Over the years, Amana Takaful has strengthened its market position by enhancing service delivery, investing in digital capabilities, and expanding access to insurance solutions for a wider segment of Sri Lankans.

Commenting on the recognition, Siva Karthigun, Chief Executive Officer – General, stated: “This recognition reflects the discipline and focus we maintain across our operations to deliver consistent outcomes for our customers. Our continued investments in process improvements, digital capabilities, and service excellence have enabled us to strengthen our responsiveness and reliability, ensuring we meet the evolving expectations of our customers across all touchpoints.”

Commenting further, Gehan Rajapakse, Chief Executive Officer – Life, stated: “This recognition reflects the consistency of our efforts in delivering meaningful value to our customers, while continuously strengthening our capabilities across both Life and General businesses. As we move forward, our focus remains on enhancing accessibility, leveraging digital innovation, and ensuring our solutions remain relevant to the evolving needs of Sri Lankans, while maintaining the highest standards of service and reliability.”

Notably, a significant portion of these awards were received for digital excellence, underscoring the company’s continued progress in its digital transformation journey. Amana Takaful’s investments in technology-driven solutions, process automation, and enhanced digital customer experiences have played a key role in strengthening accessibility, efficiency, and service delivery across both Life and General businesses.

The recognition further reinforces Amana Takaful’s standing within the industry, highlighting its ability to sustain performance and adapt in a dynamic environment. For Every Sri Lankan, as one.