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All party group plus Karu J urges immediate re-negotiation with creditors

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Three watchdog committee heads join talks with opposition MPs

In the wake of Finance Minister Basil Rajapaksa announcing his willingness to go to the IMF seeking financial support to solve the current crisis, the government and opposition MPs on Thursday agreed at a closed-door meeting convened by TNA Parliamentarian MA Sumanthiran to urge government to start renegotiating with the country’s creditors without further delay.

“We have agreed that the government should commence renegotiating with our creditors before we run out of our existing foreign reserves so that we could reschedule our loan settlements. It was also seen in the discussion that the renegotiation would be a multi-step process. We also discussed similar experiences by other countries such as Argentina and Uruguay.

“We also discussed that any solution that should come out in those negotiations should ensure that the continuous flow of essential goods to the market and the ensuring that the poor and vulnerable sectors of our society are never compromised. We also agreed that there should be a condition from our side that the welfare and social protection measures should continue without any pruning,” Convenor of the meeting MP Sumanthiran told the Sunday Island.

The meeting was attended by TNA leader R Sampanthan, SJB leader Sajith Premadasa, former Speaker Karu Jayasuriya, SLMC leader Rauf Hakim, Leader of the Tamil Progressive Alliance Mano Ganesan, SJB MPs Dr Harsha de Silva and Eran Wickremaratne, TNA MP Shanakiyan Rasamanikam, COPE Chairman Prof Charitha Herath, COPA Chairman Prof Tissa Vitarana and COPF Chairman Anura Priyadarshana Yapa.

It was the second of a series of meeting convened by MP Sumanthiran. It was held at Waters Edge in Battaramulla and lasted for over one and half hours. The first meeting was held on Jan 27 at Cinnamon Grand and attended by UNP leader Ranil Wickremesinghe, MP Kabir Hashim and JVP MP Dr Harini Amarasuriya.

“Both were closed-door meetings to save time and considering the prevailing situation. They were not secret meetings, because they were open to MPs and political leaders concerned with finding a collective response for the economic crisis our nation is confronted with. Our main objective was to to brainstorm ways to tide over the crisis, given the responsibility we have towards people,” Sumanthiran said.

“We will convey our agreements to the government in the coming days,” he said.

A paper signed by Sumanthiran after the first meeting said: “Sri Lanka is in the midst of an unprecedented economic crisis, causing severe hardship to all segments of our society, especially our working people and the poor.

“Undoubtedly, the government has a daunting task ahead, and as a country there is a need for us all to come together to overcome this challenge.

At the same time, the government’s approach to resolving the crisis raises some serious questions. Its focus, almost solely on meeting foreign debt obligations, is draining the country of dollars needed for importing essentials for our people. The government’s emphasis on avoiding a default at any cost appears to be downplaying a fundamental question – can our people eat? After all, a country’s pride rests not only in repaying its loans, but also in ensuring no citizen goes to bed hungry.

“I approached parliamentary colleagues and party leaders, in my capacity as a former chairman of the Committee on Public Finance in Parliament. MPs came together in the knowledge that Parliament is expected to have full control of public finance, and that each MP, therefore, also has a fiduciary responsibility to ensure the proper management of public finances in Sri Lanka.

“The crisis, we noted, is of a proportion that is historically unprecedented for many reasons:

(1) The country’s ratings have fallen to the level of being blacklisted in international credit markets.

Since April 2020, Sri Lanka has been locked out of borrowing using International Sovereign Bonds (ISBs) in the international market

(2) Repaying US dollar debt in this context means that the usable foreign reserves are down to below one month of imports – the lowest on record since independence.

(3) The ratio of interest on debt to government revenue was above 70% in 2020, a historical high for Sri Lanka, and amongst the highest in the world.

(4) The ratio of public debt compared to the value of Sri Lanka’s domestic production (GDP) is also the highest on record, at 120%. It skyrocketed, by almost 25 percentage points, in the last two years.”



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Pakistan naval trio arrives at Colombo Port

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In a display of naval tradition, the Sri Lanka Navy formally welcomed the Pakistan Navy Ships ‘PNS Taimur’ and ‘PNS Aslat’, alongside the submarine ‘PNS/M Hangor’, arrived at the Port of Colombo on 01 Jun 26.

The Pakistan naval units made port in Sri Lanka for a goodwill visit as well as replenishment.

The visiting naval assets are commanded by a lineup of naval officers, with Captain Niamat Saeed Khan (‘PNS Taimur’), Captain Nadir Mateen Afridi (‘PNS Aslat’), and Captain Uzair Farooq (‘PNS/M Hangor’).

During their stay in Sri Lanka, the crew members of the visiting ships and submarine are scheduled to tour several key locations across the country.

Concluding the visit, the Pakistan naval units will engage in a Passage Exercise (PASSEX) with the Sri Lanka Navy off the west coast.

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IMF turning a blind eye to NPP corruption: Opp.

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Patali / G. L. Peiris

The People’s United Opposition yesterday (01) alleged that the International Monetary Fund (IMF) had turned a blind eye to serious corruption allegations against the NPP government and was going ahead with the USD 2.9 bn loan in terms of the Extended Fund Facility (EFF) programme, finalised in 2023.

Addressing the regular weekly media briefing at the Flower Road Office of former President Ranil Wickremesinghe, former Ministers Prof. G. L. Peiris and Patali Champika Ranawaka questioned the failure on the part of the IMF to act in spite of the NPP government engaging in open corrupt practices, contrary to the terms and conditions of the agreement/understanding with the lending agency.

The media was told that the IMF couldn’t absolve itself of the responsibility for the actions of the government, especially because Sri Lanka, experiencing severe economic difficulties, was receiving loans from IMF at over 8%. Ex-parliamentarian Ranawaka pointed out that what Sri Lanka received from the IMF was not JAICA-type soft loans and the country was further burdened.

Prof. Peiris and Ranawaka alleged that the IMF appeared to have chosen not to take up the serious and growing accusations, particularly over coal and fuel scams that caused massive losses. They claimed the government had taken decisions at the expense of the country but for the benefit of certain businessmen close to them.

Both Prof. Peiris and Ranawaka explained the circumstances under which certain persons and companies received privileged status to import very costly vehicles and even helicopters and aircraft as the government

wasted precious foreign reserves for the benefit of friends. Ranawaka named two companies that benefited from government actions while alleging that those engaged in lucrative coal and fuel business made a killing.

They pointed out that the IMF released the latest USD 695 mn amidst stepped up serious allegations against the government. (SF)

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Shavendra tells Beijing meet Sri Lanka should not become an arena for geopolitical rivalry among major powers

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Shavendra Silva

Former Commander of Sri Lanka Army with possibly the best battlefield record, having recovered the most amount of enemy occupied territory by troops he led from the front in the Vanni theatre of operations (2007-2009), General Shavendra Silva recently discussed growing challenges faced by smaller countries, like Sri Lanka, in what he called the evolving global environment.

Stressing that responsibilities must be shared across all states, the former Commander of the Sri Lanka Army told the 5th edition of the Wanshou Dialogue on Global Security in Beijing: “Major powers bear a special responsibility to exercise strategic restraint, avoid coercive practices, uphold international law, and contribute toward global stability rather than fragmentation.

Emerging and middle powers have an increasingly important role as bridge builders promoting dialogue, cooperation, and institutional reform.

For countries such as Sri Lanka, the path forward lies in principled and balanced diplomacy.

This requires maintaining constructive relations with all nations while safeguarding sovereignty, strategic independence, and national interests.

Sri Lanka has consistently maintained that its territory should not become an arena for geopolitical rivalry or military confrontation among larger powers.

Instead, our focus remains on strengthening national resilience through economic development, institutional stability, maritime awareness, modern defence capabilities, and agile diplomacy.

Credible domestic institutions, accountable governance, and national cohesion ultimately strengthen sovereignty while reducing opportunities for external interference.”

Referring to his service as Ambassador and Deputy Permanent Representative of Sri Lanka to the UN in New York, General Silva said that his engagements at the UN and other international forums reinforced the importance of defending national interests while remaining committed to reconciliation, development, and peaceful coexistence.

The celebrated battlefield commander discussed the transformation of global security, the future direction of the international order and the responsibilities of states in this transitional era. Silva said: “Today, security threats extend far beyond conventional warfare.

Cyber threats, terrorism, disinformation, economic coercion, artificial intelligence, and the weaponisation of technology increasingly influence global stability. At the same time, climate change, pandemics, food insecurity, and economic disruptions have demonstrated how closely national security and human security are now interconnected.

For Sri Lanka, located at the centre of the Indian Ocean along one of the world’s most important maritime trade routes, these developments carry direct strategic significance. Sri Lanka’s own experience offers valuable lessons.

The defeat of the LTTE, in 2009 demonstrated the importance of decisive state action against terrorism, while also revealing how modern conflicts become internationalised through financing networks, propaganda, illicit arms flows, and external geopolitical pressures.

The post-conflict period further reinforced the importance of reconciliation, economic recovery, institutional rebuilding, and long-term national resilience.

Smaller states increasingly face pressures arising from great-power rivalry, economic dependency, and strategic competition.

Sri Lanka has, therefore, consistently sought to maintain strategic balance while safeguarding sovereignty and constructive engagement with all partners.

China has remained an important development and economic partner for Sri Lanka over many decades. The relationship, strengthened through the 1952 Rubber-Rice Pact, expanded significantly in the post-war period through cooperation in infrastructure, connectivity, logistics, energy, and economic recovery. Projects associated with the Belt and Road Initiative have contributed to Sri Lanka’s development, regional connectivity, and post-crisis resilience. China also extended support during the COVID-19 pandemic and Sri Lanka’s recent economic stabilisation efforts.

The future international order must be shaped not by confrontation or exclusive blocs, but through pragmatic cooperation, institutional reform, and balanced multilateral engagement.

International institutions, particularly the United Nations system, must evolve to better reflect contemporary geopolitical realities and the growing voice of the Global South.

Without greater inclusivity and legitimacy, multilateral institutions risk losing effectiveness in addressing increasingly complex global challenges.

Equally important is preserving a rules based maritime order grounded in international law, particularly the principles of the United Nations Convention on the Law of the Sea.

The international community must also establish clearer norms governing emerging technologies, cyber operations, artificial intelligence, autonomous weapons systems, and outer space security.

Sri Lanka’s recent economic stabilisation efforts further demonstrated that internal resilience is essential for maintaining strategic autonomy and an independent foreign policy.

It is also an opportunity to build a more inclusive, balanced, and resilient international order capable of responding to the realities of the 21st century.

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