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Chinese loans: Debt restructuring to commence in earnest after 20th National Congress of CPC

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‘Previous govt. printed money excessively’

By Saman Indrajith

The government would start discussions on debt restructuring with China in earnest after the 20th National Congress of the Chinese Communist Party that starts on 16 October, President Ranil Wickremesinghe said yesterday in Parliament.The President added that preliminary discussions with China had already begun. “Japan has agreed to help us negotiate with China. This is a very positive development. China has helped us in times of difficulty in the past. We believe that they will help us in this time of need as well,” he said.

President Wickremesinghe said the government was also holding discussions with India. He had the opportunity to explain the current Sri Lankan situation to Prime Minister Narendra Modi recently.

“Prime Minister Modi has always supported us. During the recent crisis, they helped us greatly. India will help us during the coming revitalisation process,” President Wickremesinghe said.The President said that he had met a large number of Finance Ministers while he was in Manila at the ADB conference. Given that Finance Ministers play a big role in allocating assistance and restructuring debt, it had been a great opportunity to state the case for Sri Lanka, he said.

“We expect to come to a common agreement with our creditors including Japan, India and China.

“Once we reach an agreement with bilateral creditors, we will hold discussions with the London Club, an informal group of private creditors on the international stage. We also wish to come to an agreement o debt restructuring. Once we come to an agreement with bilateral and private creditors, we can get an IMF facility.”

Wickremesinghe said that the ADB had already pledged 500 million dollars to Sri Lanka and once the agreement with the IMF is signed, Sri Lanka could secure bridging finance.

“Given our situation, we can’t obtain commercial loans from the World bank or other lending agencies. Joining hands with the Global Development Conference, we have asked for an opportunity to obtain concessional financial aid,” he said.

The President added that the government was trying to boost tourism, which could bring in much needed remittances in the short term. He added that in the past two years, the previous government hsf printed too much money.

“The previous government printed 13 times more than the 2015-19 government did. However, production did not increase. This was a recipe for inflation. Because of the steps we took, we managed to keep the inflation under 70 percent in September. By the end of the second quarter of 2022, the Ceylon Petroleum Corporation (CPC) has incurred a loss of 1,057 billion, Ceylon Electricity Board (CEB) 251 billion and SriLankan airlines has accumulated 791 million in losses. We can’t make people bear this burden. We will restructure them.”



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CoPF Chief steps up pressure on Prez to appoint AG

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President Dissanayake / Dr. de Silva

House Committee, BASL and TISL take common stand

The Chairman of the Committee on Public Finance (CoPF) has found fault with President Anura Kumara Dissanayake for what it calls the inordinate delay in appointing a new Auditor General. CoPF Chairman Dr. Harsha de Silva, in a letter dated Dec. 22 addressed to President Dissanayake, has pointed out that the Office of the AG remains vacant.

The SJBer raised the serious issue with the President close on the heels of the interventions made by the Bar Association of Sri Lanka (BASL) and Transparency International Sri Lanka (TISL).

Dr. de Silva has emphasised that the failure on the part of the President to fill the vacancy is a matter of serious concern. The Constitutional Council has repeatedly rejected the President’s nominee while questioning his suitability.

The following is the text of CoPF Chairman’s letter to the President: ” I wish to respectfully bring to your attention that the Office of the Auditor General has remained vacant since 7 December, following the conclusion of the tenure of the Acting Auditor General on 6 December. At present, there is neither a substantive nor an acting Auditor General in the country, and consequently, the Audit Service Commission remains without a chairman. Given the prevailing circumstances of the country, the continuous absence of this constitutionally mandated post is a matter of serious concern.

Under Article 148 of the Constitution, Parliament exercises full control over public finance. The effective exercise of this control is constitutionally dependent on the continuous functioning of an independent audit mechanism.

Article 154 of the Constitution establishes the office of the Auditor General and mandates the audit of all State institutions and the reporting of such audits to Parliament. The absence of an Auditor General disrupts this mandatory constitutional process. This mandate is further reinforced by Section 3 of tile National Audit Act, No. 19 of 2018.

Moreover, the oversight functions of the Committee on Public Accounts, and the Committee on Public Enterprises in terms of Standing Orders 119, and 120 are directly dependent on audit reports issued by the Auditor General. The continued vacancy therefore materially undermines parliamentary financial oversight.

As the Committee on Public Finance (CoPF) is responsible for reviewing the budget and work programme of the National Audit Office, I consider it my duty, as the Chair of the CoPF, to urge the immediate appointment of the Auditor General.

Accordingly, I respectfully request that urgent action be taken to appoint a suitable, qualified and experienced individual as the Auditor General in accordance with Article 153(1) of the Constitutional, without further delay.”

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Indian HC and Consulates extend humanitarian assistance to families affected by Cyclone Ditwah

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HC Jha handing over relief

As part of India’s continued assistance to Sri Lanka under ‘Operation Sagar Bandhu’, the Indian High Commission in Colombo, Assistant High Commission in Kandy and Consulate General of India in Jaffna conducted humanitarian assistance distribution drives for families affected by Cyclone Ditwah in different parts of the country, the Indian HC said.

The text of the HC statement: “On 18 December, High Commissioner of India Santosh Jha distributed relief kits among affected families in the Kolonnawa in coordination with All Ceylon Sufi Spiritual Association and among children of Bhaktivedanta Children’s Home ‘Gokulam’ at ISKCON Temple in Colombo. Earlier this month, the High Commissioner also distributed assistance among residents of Nayanalokagama, village specially designated for the visually impaired, and among affected families in Negombo in the Gampaha District.

Between 9 and 19 December, Assistant High Commission of India in Kandy distributed essential food items and supplies among hundreds of affected families in Kandy, Nuwara Eliya and Badulla Districts.

Similarly, the Consulate General of India in Jaffna carried out several distribution drives for affected families in Mannar, Mullaitivu and Kilinochchi, as well as island territories of the Jaffna District.

This assistance is over and above several tonnes of food and relief material handed over by India to the Government of Sri Lanka under ‘Operation Sagar Bandhu’.”

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Sri Lanka prepares to deploy fresh military contingent under UN command

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Latest SLAF contingent for overseas deployment under UN command(pic courtesy SLAF)

The passing-out parade of the No. 11 Contingent of the Aviation Unit assigned to the United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic (MINUSCA) took place on 23 December 2025 at the SLAF Base Katunayake. The Commander of the Air Force, Air Marshal Bandu Edirisinghe, took the salute as the parade was led by Group Captain Asiri Pathirage, the Contingent Commander of the 11th contingent.

The heli-deployment, comprising 22 officers (including two female officers) and 88 airmen (including five airwomen), is scheduled to depart for the Central African Republic in the middle of January.

During the address to the parade, the Commander noted that the United Nations Headquarters has praised the Sri Lanka Air Force contingents stationed in the Central African Republic for their bravery, professionalism and dedication to duty. He emphasized that this accomplishment reflects the trust and confidence placed in the military forces of Sri Lanka by the international community, enhancing the nation’s standing on the global stage. This mission is also anticipated to bring significant economic benefits to the country.

The parade was attended by the Chief of Staff, Deputy Chief of Staff, members of the Air Force Board of Management, officers and airmen of SLAF Base Katunayake and most specifically, the beloved family members of the Aviation Contingent.

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