News
Cabraal says due to sin of floating rupee country has to pay extra Rs 1,155 bn in settling foreign debt
By Saman Indrajith
Sri Lanka would have to pay an additional Rs. 1,155 billion as its loan settlements in the years from 2020 to 2024 due to the floating of the rupee value, Parliament was told yesterday.
State Minister for Money and Capital Market and State Enterprise Reforms, Ajith Nivard Cabraal said that while he was the Governor of the Central Bank from 2012 to 2014 the highest priority had been given to maintaining the rupee at a stable rate. “Some economic experts came up with the idea of free floating. Later, it was implemented and we got floating currency value. Now, we see the results.”
Minister Cabraal said so responding to a question by SJB Colombo District MP S. M. Marikkar, who asked the Minister to inform the House of the amounts of money which the government had to pay back as local and foreign debts between 2020 to 2024, separately in respect of each year.
The Minister said that Sri Lanka had to settle foreign debt worth USD 4,095 million (Rs 760 billion) in 2020, USD 3,910 million (Rs 726 billions) in 2021, USD 4,481 million (Rs 832 billion) in 2022, USD 4,242 million (Rs 787 billion) in 2023 and USD 4,404 million (Rs 817 billion) in 2024.
Domestic debt that had to be settled in 2020 amounted Rs. 1,230 billion, the minister said, adding that the amount was Rs 1,557 billion for 2021. The local debt to be settled in 2022 was Rs 1,128 billion; Rs 1,120 billion for 2023 and was Rs 899 billion for 2024.
MP Marikkar asked whether Sri Lanka would obtain more foreign loans to settle its debt. “The amount of debt burden is increasing and the value of rupee is depreciating. Today, the value of a US dollar is 196 rupees. What is the government planning to do about this?”
Minister Cabraal said that the amounts to be settled as foreign debt would have had a different rupee value if his successors as the Governors of the Central Bank had taken action to maintain a fixed rupee value the way he had done. “We maintained a fixed rupee value at Rs 131 against the US dollar. Later, it was changed and let the rupee value float. No, we see the results. The amount of foreign debt to be settled in 2021 in rupees is 726 billion. It would have been Rs 536 billion instead had the rupee value been fixed. The amount of foreign debt to be settled in 2022 is Rs. 832 billion and it would have been Rs 587 billion instead. Similarly, the amount of foreign debt for the years 2023 and 2024 are Rs 787 billion and Rs 817 billion respectively. It would have been Rs 555 billion and Rs 577 billion instead.”
“The value of the debt has arisen since the exchange rate of the rupee was not maintained,” Minister Cabraal said, noting that since the new government came to power efforts had been mae to maintain the rupee value. “There have been occasions where we faced pressure but during the last several days of the year, the rupee value increased against some currencies. That is a positive sign.”
News
Members of the TPA meet with President Dissanayake
A group of Tamil Progressive Alliance (TPA) members, including its Leader Mano Ganesan, met President Anura Kumara Dissanayake on Thursday (02) morning at the Presidential Secretariat.
Extensive discussions were held on the issues faced by the Malayagam communities, particularly in relation to education, housing and land, as well as on the urgent measures required to address these concerns. The President paid special attention to all these matters.
Attention was also drawn to the recruitment of qualified Tamil-medium teachers to address the teacher shortage in estate sector schools and this too was discussed at length.
Members of Parliament P. Digambaram and V. Radhakrishnan, along with several other party members, were present at the meeting.
News
Lanka secures Russian support with oil supply amidst energy crunch
Minister of Foreign Affairs, Vijitha Herath, held talks with Deputy Foreign Minister of Russia Andrey Rudenko at the Foreign Ministry, in Colombo, on Thursday (02), with both sides reaffirming their commitment to strengthening bilateral relations.
The Sri Lanka Ministry of Foreign Affairs said the visiting Russian Deputy Minister noted that Russia regarded Sri Lanka as a long-standing friend.
Rudenko assured that Russia stood ready to support Sri Lanka when required, including in the swift supply of Russian oil to help address the current energy challenges, encouraging Russian investors to explore new opportunities in the country and promoting increased tourist arrivals.
He also expressed Russia’s readiness to provide compensation for Sri Lankan war veterans who had lost their lives in the ongoing conflict between Russia and Ukraine.
Minister Herath welcomed Russia’s willingness to assist, emphasising that Sri Lanka valued the support extended by its “old friend”, particularly at a time when the country was facing pressing energy needs.
He noted that the two countries shared nearly seven decades of diplomatic relations and said the present moment provided an opportunity to further strengthen ties, including through long-term trade agreements.
The discussions focused on enhancing cooperation in the fields of energy, investment, tourism and diplomacy, with both sides reiterating their commitment to further deepen the longstanding friendship between Sri Lanka and Russia.
News
157 foreigners arrested for engaging in online financial scam from hotel at Iranawila
Police yesterday arrested 157 foreign nationals in connection with an alleged organised online financial scam, conducted from a hotel in the Iranawila area in Chilaw.
The suspects were taken into custody during a raid carried out by the Police while they were staying at the hotel in Iranawila.
Police said the arrested group included 143 nationals from China, 13 from Bangladesh and one from Vietnam.
Investigators suspect the group had been involved in a coordinated online financial scam, targeting victims through digital platforms.
The suspects are being detained for further questioning while investigations are continuing to determine the full extent of the operation and whether additional individuals were involved.Police said further inquiries are underway.
By Norman Palihawadane
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