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Lanka crisis would deepen if creditors disagree, IMF says amid China concerns

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World Bank senior mission chief Peter Breuer, right, speaks with Masahiro Nozaki, mission chief for Sri Lanka, during a media conference in Colombo on Thursday. Pic by Eranga Jayawardena

ECONOMYNEXT –Sri Lanka’s ongoing economic crisis would deepen if one creditor disagrees, a senior International Monetary Fund (IMF) official said amid concerns that China would not go along with Western creditors on debt restructuring on an equal footing.

All Sri Lankan creditors including China have to agree to restructure their existing loans to the island nation before the IMF starts disbursing a 2.9 billion US dollar loan on which preliminary agreement was announced on Thursday.

“If one creditor or creditors are not willing to provide these assurances, that would indeed deepen the crisis here in Sri Lanka and would undermine the repayment capacity,” Peter Breuer, senior IMF mission chief told reporters in Colombo when asked what if China does not agree on a debt restructuring plan.

“So a deepening crisis means that essentially the resources available to service the debt would become less,” he said at the media briefing after concluding a nine-day visit to finalize the staff-level agreement and a loan package for Sri Lanka’s reforms.

“So it is actually in the interest of all creditors to collaborate together and with Sri Lanka so that Sri Lanka can emerge from this crisis as quickly as possible and regain its repayment capacity and service this new debt that will come out of these debt negotiations.”

China has so far not agreed for debt restructuring which could include haircut or reductions in interest rates. Instead, China has expressed its willingness to refinance Sri Lanka to repay its past loans without any changes, Lankan officials say.Sri Lanka has already hired financial and legal advisory firms Lazard and Clifford Chance LLP to support its debt restructuring as the country is on the brink of bankruptcy. Lazard has been the legal adviser in Zambia’s debt restructuring where creditors included China.

The Paris Club of Western nations which has a well defined unified process for dealing with defaulted nations, which is familiar to the IMF.

“Sri Lanka is in a special situation that much of its official debt is outside of Paris Club creditors,” Breuer said.

“It is important to move expeditiously. We want to avoid the crisis from becoming worse.”



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Navy seizes an Indian fishing boat poaching in Mannar seas

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During an operation conducted in the dark hours of 11 Mar 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 02 Indian fishermen while they were poaching in Sri Lankan waters, in the sea area North of Mannar.

The North Central Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the North Central Naval Command were deployed to drive away those Indian fishing boats from island waters off Mannar.

The seized boat (01) and Indian fishermen (02) were handed over to the Fisheries Inspector of Kilinochchi for onward legal proceedings.

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Bodies of 84 Iranian sailors killed in US torpedo strike to be repatriated

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The bodies of 84 Iranian sailors killed in a torpedo attack by a US submarine last week in the Indian Ocean are due to be flown home on Friday, Sri Lanka’s defence ministry has said.

The seamen were among 130 thought to be aboard the Iranian warship, the Iris Dena, when it was sunk on 4 March about 40km (25 miles) from Sri Lanka’s southern coastline.

A police escort transferred bodies to Mattala Rajapaksa International Airport on Friday morning for the repatriation to Iran, after they were stored in two freezers at Galle National Hospital.

Sri Lanka said 32 sailors rescued by its navy after the torpedo attack “will remain in Sri Lanka”, according to news agency AFP.

A magistrate in the Sri Lankan city of Galle ordered that the 84 bodies should be released to the Iranian embassy.

US Defense Secretary Pete Hegseth said shortly after the sinking that the Iranian warship had died a “quiet death”.

Iran’s Foreign Minister Abbas Araghchi said the US had “perpetrated an atrocity at sea, 2,000 miles away from Iran’s shores”, adding that “the US will come to bitterly regret precedent it has set”.

Video released by the US Department of Defense after the incident showed a ship being struck, causing the stern to rise up before exploding.

The Iris Dena had been returning from a military exercise hosted by India when it was attacked.

Its sinking in international waters came during the current US-Israeli war with Iran and marked a dramatic widening of the conflict.

Iran has since launched retaliatory strikes across the Middle East – targeting Gulf countries allied with the US.

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Safeguarding linguistic heritage is not only a cultural responsibility, but also a shared commitment to preserving the diversity of our world – PM

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Minister of Education, Higher Education and Vocational Education Prime Minister Dr. Harini Amarasuriya participated as the Chief Guest in the special event organized to commemorate International Mother Languages Day 2026 on 13 March 2026 at the New Arts Theatre of the University of Colombo. The event was held under the theme ’Languages Unite: Diverse Voices, Shared Humanity’.

The event was jointly organized by the High Commission of Bangladesh and the Ministry of Education of Sri Lanka with the support of the United Nations, the Sri Lanka Scout Association, and the Sri Lanka Girl Guides Association.

Certificates and awards were presented to school winners of the painting, essay, and short video creation competitions organized in conjunction with the celebration of International Mother Language Day 2026.

Addressing the occasion, the Prime Minister Dr. Harini Amarasuriya stated:

“International Mother Language Day stands as a powerful reminder of the profound connection between language, identity, and dignity.

This global observance owes its origins to the visionary initiative of the People’s Republic of Bangladesh. Bangladesh’s advocacy transformed a national commemoration into a global movement one that celebrates the rich mosaic of humanity’s linguistic heritage.

Sri Lanka’s language diversity reflects the richness of our pluralistic heritage. This diversity should not be seen as a challenge to be managed, but as a strength to be valued and cherished.

When we protect language rights, we nurture social harmony. When we promote multilingual education, we empower future generations. And when we listen to one another in our own languages, we affirm each other’s humanity. At a time when divisions can easily take root, respect for linguistic diversity can instead serve as a bridge of empathy and cooperation.

In an increasingly digital age, we must also reflect on the importance of preserving linguistic diversity in cyberspace. Thousands of languages around the world remain vulnerable. Without conscious efforts in education, technology, and policy, many risk fading into silence. Safeguarding linguistic heritage is therefore not only a cultural responsibility, but also a shared commitment to preserving the diversity of our world”.

The Prime Minister remarked that the partnership between Sri Lanka and Bangladesh continues to grow in friendship and cooperation with the shared commitment to multilateralism, cultural understanding, and people-to-people engagement strengthens the bonds between the two nations.

The event was attended by the Bangladesh High Commissioner, Andalib Elias, Deputy Speaker Dr. Rizvie Salih, Secretary to the Prime Minister Pradeep Saputhanthri, FAO Country Representative for Sri Lanka and Maldives Vimlendra Sharan, Chief Commissioner of the Sri Lanka Girl Guides Association Dr. Kushantha Herath, diplomatic crops, members of the Sri Lanka Scout Association, and the Sri Lanka Girl Guides Association and students.

[Prime Minister’s media division]

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