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Agreement reached in principle with Official Creditor Committee

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The government yesterday announced that it had reached an agreement in principle with its Official Creditor Committee (OCC) on the financial terms of a debt treatment.

Issuing a press release the Ministry of Finance, Economic Stabilization and National Policies said the agreement in principle covers approximately 5.9 billion U.S. dollars of outstanding public debt and consists in a mix of long-term maturity extension and reduction in interest rates.

The agreement will facilitate a swift approval by the IMF Executive Board of the First Review of Sri Lanka’s IMF-supported programme, allowing for the next tranche of IMF financing of about US$ 334 million to be disbursed, the ministry said.

The agreed-upon debt treatment terms will be further’ detailed and formalized in a Memorandum of Understanding between Sri Lanka and the OCC, which will then be implemented through bilateral agreements with each OCC member, in accordance with their laws and regulations. The Sri Lankan Government looks forward to a prompt implementation of the agreed terms.

“This agreement marks a landmark step for Sri Lanka. We extend our sincerest thanks to the OCC and its co-chairs, Japan, India and France, for the unwavering support in resolving our country’s public debt situation. This agreement serves as a key milestone in Sri Lanka’s ongoing endeavour to achieve public debt sustainability and to foster economic recovery,” Secretary to the Treasury K M Mahinda Siriwardana said.

Given below is the press release : “This agreement in principle, together with the agreement in principle reached last month with China Eximbank, goes a long way in dealing with Sri Lanka’s external bilateral debt restructuring. The next steps will include finalizing similar agreements with our remaining official bilateral creditors, including Saudi Arabia, Pakistan, Kuwait and Iran, altogether representing a further US$ 274 million of outstanding claims.

“Sri Lanka now intends to focus its efforts on reaching comparable debt restructuring agreements with external commercial creditors, mid in particular with its holders of international sovereign bonds. Good faith engagement is still ongoing in that regard, and the authorities would like to invite its bondholders to now accelerate the discussions with a view to coming to a mutually acceptable agreement as promptly as possible.

The authorities would like to reaffirm their commitment to transparency, comparable treatment of all participating external creditors, and full compliance with the debt sustainability targets under the IMF-supported programme.”



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Divers perform Sinhala and Tamil New Year rituals beneath the waves

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Divers ring in Sinhala and Tamil New Year beneath the waves
In a groundbreaking celebration, the Malima Diving Club of the Sri Lanka Navy Malima Hospitality Services (MHS), in collaboration with the Navy Diving Unit, marked the Sinhala and Tamil New Year with a unique underwater festival at Trincomalee.

This first-of-its-kind event saw divers performing traditional cultural rituals and engaging in folk games beneath the waves, creating a mesmerizing spectacle.

The celebration aimed not only to celebrate the rich heritage of Sri Lanka’s Sinhala and Tamil communities but also to highlight the
potential of Sri Lanka’s pristine waters as a premier diving destination.

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JAAF thanks govt. and President for addressing US tariff issue

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The Joint Apparel Association Forum (JAAF) yesterday extended its appreciation to the government and President Anura Kumara Dissanayake for their engagement in addressing the recent announcement of US tariffs.

JAAF in a statement commended the action taken by the government led by President Anura Kumara Dissanayake, whose timely negotiations with the Office of the United States Trade Representative (USTR) and offers made by President AKD in his formal communications with President Donald Trump, have played a critical role in safeguarding the industry.

It said: “Thanks to these efforts, it is likely that Sri Lanka will be included in the 90-day pause, providing much-needed stability and confidence for the export sector. These efforts are a strong indication of the government’s commitment to protecting Sri Lanka’s export industries and would be instrumental in protecting livelihoods and maintaining confidence across the sector.

It is important that the fast and decisive action already initiated is continued so we can finalize a beneficial trade arrangement with the United States that extends beyond the 90 day pause period.”

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Principals won’t be appointed in ad hoc manner: Prime Minister

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School administration had been severely affected by the irregular appointment of acting principals under previous governments, Parliament was told on Wednesday.

Responding to questions raised by the Opposition during the ‘Ask the PM’ session, Prime Minister Harini Amarasuriya said the current government had decided to implement a standardised policy and procedure for appointing principals across all schools.

Prime Minister Amarasuriya said the previous government had made the process of appointing school principals chaotic.

“Without a proper procedure, acting principals were appointed. This left the school administration system in disarray. We are now following a proper process in line with existing regulations, to rectify the situation. Principals are appointed to all national schools and vacancies are filled in a proper manner.

The Prime Minister also addressed concerns related to the Gampaha Wickramarachchi Institute of Indigenous Medicine.

“Several issues were identified based on written and verbal complaints received from various parties. An expert committee has been appointed to conduct a formal and analytical investigation. Discussions were held with both academic staff and students, and several key concerns emerged during the initial meetings,” she said, adding that the Gampaha Wickramarachchi Institute of Indigenous Medicine had been upgraded to university status without basic facilities.

“New faculties and degree programmes were introduced without adequate human resources or infrastructure. Moreover, beyond its core focus on indigenous medicine, programs in technology, social sciences, and management were established,” the Prime Minister said.

She said that a formal committee had been appointed to investigate the matter and prepare a report with recommendations for appropriate action.

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