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Cabraal tells Sajith not to confuse loans with grants

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By Saman Indrajith

State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal yesterday urged Opposition Leader Sajith Premadasa to understand that there was a difference between loans and grants.

 Minister Cabraal told Opposition Leader Premadasa: “Make no mistake. Grants and loans are two different things. There are some who think that when a loan is a favour to us in the same way as a grant. It is not so.”

 “Opposition Leader asks whether we would reject Asian Development Bank grants to upgrade the Kelani Valley railway. First, he should learn that the ADB does not give grants, it gives loans. Even if we reject the ADB loan, we have decided to continue with the project because the country needs it. These are our country’s projects; we do them for the sake of the country. They will be completed whether we receive loans or not. This is our responsibility as a government we complete these projects.”

Minister Cabraal said so responding to a series of questions raised by Opposition Leader Premadasa who said that the government had stopped the Light Rail Transit (LRT) project funded by Japan International Cooperation Agency (JICA) and that would be inimical to Lanka-Japan relations.

Minister Cabraal said that the LRT project was to be carried out with a loan from JICA to be settled in 52 years with a 12-year grace period under 0.1% interest. “The Opposition leader should understand that the stipulated period of 52 years is too risky for this country since we would not know the rate of the Japanese Yen in 52 years. A Japanese Yen was two cents then. Now it is Rs. 1.80. Making calculations on the basis of 0.1 percent interest rate does not give the complete picture.

“The Opposition Leader accuses the government of arbitrarily suspending the LRT project. Where was he when his government stopped the Port City project resulting in paying additional 125 million US dollars and adding several more acres to the project due to their ill-conceived action. They suspended a project by SriLankan airlines and had to pay USD 110 million as compensation.”

Minister Cabraal said that the Cabinet had decided on Sept 28. to obtain an ADB loan for the Kelani Valley project because accumulation of foreign loans would not be favourable to the national economy. “At the time they assumed office the amount of loans was 72 percent of the GDP and by the time they left office it had been increased up to 87 percent of the GDP. Foreign loans increased during their time. It is not healthy to the economy to add up more foreign loans. So, we had to suspend some projects they commenced under foreign loans to manage the economy.

“In managing an economy you should understand priorities. The LRT project was planned on a loan of USD 2,300 million. The Kelani Valley project was to be carried out with a loan of USD 1,400 million. If we had gone ahead with those projects, the country would have suffered a loss. Those two projects are centered on the Colombo city. That means their benefit is not directly felt by the low and middle income receiving population in other provinces.”



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Iranian ships stranded, Lanka fears US sanctions

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‘Companies may face US sanctions’: Lanka to put ‘national interest’ first as 19 Iranian vessels seek help

(ToI) Sri Lanka said on Friday it would “prioritise our national interests” before providing assistance to the crews of 19 Iranian ships anchored in international waters near the island nation.The crews are facing shortages of food, water and fuel. A foreign ministry spokesperson cited the risk of US sanctions against Sri Lankan companies supplying the vessels as a key concern.

The United States and Iran have been at war since February 28, when the US and Israel launched joint strikes against the Islamic Republic.

“Sri Lanka will put its national interest first before considering any help, and the companies that supply ships are aware of possible secondary sanctions from the United States,” spokesperson Thushara Rodrigo told reporters, ruling out any immediate assistance to the vessels.

Rodrigo clarified, however, that Sri Lanka had received no communication from the United States warning of repercussions if it decided to assist the vessels.According to Rodrigo, the ships are stationed 24 nautical miles off Sri Lanka’s coast.The Iranian Embassy said it had no information on the matter.

In March, a US torpedo attack sank the Iranian naval vessel IRIS Dena in Sri Lankan waters, killing 87 sailors.

The ship was returning to Iran after participating in a naval exercise at India’s invitation. A second Iranian vessel was brought to a Sri Lankan port after its crew reported technical problems.

Wounded sailors were treated at Sri Lankan hospitals, while those rescued from the second vessel were safely repatriated to Iran.

Sri Lanka is still recovering from an economic crisis, with both the United States and Iran serving as important trading partners. Washington played a key role in securing an International Monetary Fund bailout and supporting Sri Lanka’s agricultural sector to help avert a food crisis.

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Sri Lanka CERT warns of overseas university admission scams

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Sri Lanka CERT has warned the public of fraudulent social media advertisements offering admission to foreign universities after receiving complaints from parents and students who have lost hundreds of thousands of rupees to scammers.

The fraudsters reportedly pose as representatives of reputed foreign universities, promising admission, student visas, work permits and even eventual citizenship in return for registration fees and initial tuition payments.

They use convincing videos, photographs and documents circulated via email and WhatsApp to gain the confidence of unsuspecting victims before asking them to transfer money to foreign bank accounts. The scammers then disappear after receiving the payments, Sri Lanka CERT said.

The agency has urged prospective students and their parents to verify the authenticity of university representatives, documents and bank account details before making payments, and to seek overseas education opportunities only through legitimate and recognised channels.

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Navi Pillay’s Lankan affairs in focus as she wins 2026 Nobel Peace Prize

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Navi Pillay

Former UN High Commissioner for Human Rights and International Court of Justice judge Navanethem “Navi” Pillay has won the 2026 Nobel Peace Prize for her contribution to international law and efforts to promote peace, the Norwegian Nobel Committee announced in Oslo on Friday.

Announcing the award, committee chairman Jørgen Watne Frydnes said Pillay had “significantly enlarged the scope and impact of international law” and helped advance “a more comprehensive global legal order” with exceptional courage. He also praised her long career, which began as a lawyer confronting deep-rooted discrimination in South Africa, and described her as a person with a “firm moral compass”.

Pillay, 85, served as the UN High Commissioner for Human Rights from 2008 to 2014. Her tenure brought her into sharp focus in Sri Lanka, particularly over her assessment of the country’s human rights situation in the aftermath of the decades-long civil war.

During an official fact-finding visit to Sri Lanka from August 25 to 31, 2013, Pillay travelled to areas including Jaffna, Kilinochchi and Trincomalee, where she met civil war survivors, families of the disappeared and local communities.

Following the visit, she warned that Sri Lanka was moving towards authoritarianism and highlighted what she described as a persistent climate of fear.

She also reported intimidation and harassment of people who had sought to meet her during the mission.

Pillay urged the UN Human Rights Council to establish an international inquiry mechanism to investigate alleged war crimes and crimes against humanity committed by both government forces and the LTTE during the final stages of the 26-year civil war.

Her observations and recommendations became a significant part of international scrutiny of Sri Lanka’s post-war human rights record.

The Norwegian Nobel Committee received 287 nominations for this year’s Peace Prize, slightly more than a quarter of them being organisations. The committee traditionally considers efforts to promote peace, international fraternity and institutions that contribute to lasting stability.

Last year, Venezuelan opposition leader Maria Corina Machado won the prize for her campaign for a democratic transition in Venezuela. She was praised as a woman who kept the flame of democracy burning amid growing darkness.

The 2026 award marks the 125th anniversary of the Nobel Peace Prize, first presented in 1901. Over its history, the prize has recognised prominent figures and organisations involved in advancing peace, human rights and international cooperation.

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