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Debt restructuring: Sajith alleges Prez failed to secure optimal deal
By Saman Indrajith
Opposition and SJB leader Sajith Premadasa told Parliament yesterday (02) that the government had failed to secure the optimal deal in the debt restructuring process.
Soon after the President made a special statement to the House, Premadasa said that the government haD failed to secure the best possible deal in the debt restructuring process. The globe-trotting President could have made use of his visits to secure the best possible deal to Sri Lanka. “The President says that the government has assured the best interests of this country but there are serious issues with regard to financial discipline and deliverance and promises it makes,” Premadasa said.
The government had not yet been able to provide thE House with bi-lateral agreements it had entered in relation to the debt-restructuring process, Premadasa said..
The President’s statement that Sri Lanka had been able to enter into agreements to restructure debt earlier than other countries that had been in similar economic crises was not true. Countries such as Ghana, Argentina, Ecuador, Barbados, Belize, Mongolia and Chad succeeded in entering into debt-restructuring agreements before Sri Lanka, said the Opposition Leader.
“We expected the President to furnish all necessary information pertaining to the debt-restructuring agreement. However, there was no such presentation. We are waiting to see whether Sri Lanka has been able to restructure the debts in a manner favourable to this country. We are yet to find whether the incumbent government could fare better than Argentina, Ghana and Ecuador in the debt restructuring agreement,” Premadasa said.
“The President, in his statement to the nation, said that we’ll start repaying the loans in 2028. There was a Debt Sustainability Analysis by the IMF in March 2023 stating that Sri Lanka would be able to start the process of repaying its debts from 2033. We demand to know how and why the government could not keep it to 2033 and reasons for starting this in 2028. We think that this is owing to failures that took place during the negotiations.
“The President speaks of a success in the debt-restructuring process without revealing true figures. For example, he stated that the debts we owed to the China Exim Bank was at US $ 3.9 billion and that the bank had agreed to restructuring. But he did not mention anything about the US $ 13.8 million debt we owed to the Chinese Government or US $ 538 million debt to the China Development Bank.
Premadasa said that the government’s debt restructuring process had double standard policy with regard to International Sovereign Bond (ISB) holders and the poor people in the country. It seems that the government has succumbed to the threats and pressure of the ISB holders. In 2022, it was clearly stated that the government would not restructure the local debts. However, in the face of the ISB holders’ threats, the government went for that. It did not even touch the super-rich primary bond dealers but pick-pocketed the monies in the pension funds and EPF. In October 2023, the government announced that it would not implement Value Recovery Instruments. However, after ISB holders exerted pressure, the government implemented Macro-link Bonds. It promised transparency and comparability for domestic bond holders and spoke of equal burden sharing. But there was no burden sharing by ISB holders; instead the government pick-pocketed the poor people’s money in pension funds and EPF.
“The President, in his statement, questioned the achievements this government has been able to make, good or bad. I am asking whether increase of malnutrition is good or bad, whether the brain drain is good or bad, whether the increase of unemployment good or bad, whether the increase of poverty is good or bad, whether the closure of MSMEs in their hundreds of thousands is good or bad, whether the entrepreneurs leaving their professions is good or bad, whether the collapse of construction industry is good or bad, whether the children faint in schools because they have no food is good or bad,” Premadasa demanded to know.
News
Airbus deal: CIABOC summons Mahinda and Priyankara
Former President Mahinda Rajapaksa and former Minister Piyankara Jayaratne have been summoned by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) on May 12, 2026, to record statements in connection with the ongoing probe into the controversial Airbus procurement deal.
The summons is part of an investigation into allegations surrounding the 2013 purchase of six Airbus A330 aircraft and eight A350 aircraft for SriLankan Airlines, during which US$2 million is alleged to have been received as bribes.
The allegations have been levelled against former SriLankan Airlines Chief Executive Officer Kapila Chandrasena and his wife, Nayomi Wijenayake.
Chandrasena was arrested by the CIABOC on March 12 and remanded until May 5 under provisions of the Bribery Act and the Anti-Corruption Act, as investigations continue.
In a submission to the Colombo Magistrate’s Court on March 19, 2026, CIABOC stated that it had uncovered material indicating that funds allegedly obtained as bribes from the Airbus transaction were passed on by Chandrasena to former President Mahinda Rajapaksa and former Aviation Minister Piyankara Jayaratne.
According to the CIABOC, Chandrasena has stated that following a request made by Rajapaksa in 2015, a total of Rs. 60 million was handed over in three instalments of Rs. 20 million each at the former
President’s residences in Beliatta and Carlton,Chandrasena maintains that any references to the aforementioned individuals were made in an affidavit under intimidation and do not represent his voluntary account, according to his lawyers. He has also alleged that he was not granted access to legal counsel while the statement was being recorded
News
Suspected cyber fraud: about 120 foreigners arrested
Around 120 foreign nationals have been arrested in a major police raid carried out at a location on Meda Welikada Road, in Rajagiriya, over alleged involvement in cyber fraud and other illegal financial activities.
The suspects, taken into custody by the Welikada Police, include nationals from China, Vietnam, Malaysia, Madagascar, the Philippines, Thailand and Cambodia, among others.
The group is believed to have operated a coordinated cyber fraud network from several rented floors of an apartment building in the area.
A large stock of equipment, allegedly used in the suspected operations, including laptops and mobile phones, was seized during the raid and taken into police custody for further forensic examination.
Investigations have revealed that the operation was run as a sophisticated illegal financial network, targeting victims through online platforms.
Police further stated that several suspects managed to flee the scene during the initial raid, and follow-up operations were underway to apprehend them.
Welikada Police are continuing investigations to determine the full extent of the alleged network and identify any additional individuals linked to the operation.
by Norman Palihawadane
News
Scientists sound alarm over Lanka’s mounting food waste
Sri Lankan scientists have revealed that households, restaurants, hospitals and farms across the country discard large quantities of food daily, despite growing concerns over food insecurity and rising living costs.
The findings were presented at a forum organised by the National Science Foundation’s Media and Event Management Division, under the purview of the Ministry of Science and Technology, at the NSF auditorium in Colombo last week.
Delivering a stark assessment of the crisis, Emeritus Professor K.K.D.S. Ranaweera observed that the modern world is now divided between “those who do not sleep because they are hungry and those who do not sleep because they are afraid of those who are hungry.”
Addressing academics, food science experts and media representatives, Prof. Ranaweera revealed that food wastage in Sri Lanka occurs across the entire supply chain even as many citizens continue to battle malnutrition and food insecurity.
Citing the United Nations Environment Programme Food Waste Index Report 2021, he said Sri Lankan households alone generate more than 1.6 million tonnes of food waste annually.
The destruction begins even before food reaches markets. According to data presented at the forum, wild animals including peacocks, monkeys, wild boars and elephants inflict annual agricultural losses estimated at between Rs. 17 billion and Rs. 20 billion, destroying nearly 31,000 metric tonnes of fruits and vegetables before harvest.
Massive losses continue after harvesting as well. Government statistics show that 19% of vegetables, amounting to 221,955 metric tonnes, and 21% of fruits, equivalent to 290,151 metric tonnes, are wasted every year owing to poor harvesting practices, rough transportation, delays, improper handling and the lack of adequate cold storage facilities.
Restaurants and social functions were identified as another major source of waste. Prof. Ranaweera disclosed that restaurants in the Colombo district alone discard nearly 110 tonnes of food daily. Lavish weddings and large-scale social gatherings, where food is routinely over-served, were described as a culturally entrenched contributor to the crisis.
Prof. Ranaweera said hospitals too have become significant generators of food waste. Forum participants revealed that a national hospital produces between one and four metric tonnes of food waste per day. In many instances, visitors bring several meal packets for patients, much of which ultimately ends up in garbage bins.
The household sector emerged as one of the most troubling contributors. According to figures presented at the forum, urban households waste food worth over Rs. 1,000 each week, while an average family discards around 34 kilos of food weekly.
Participants at the forum further cautioned that nearly half of the solid waste generated in the Western Province, much of it originating from the Colombo district, consists of food waste, placing severe pressure on already overburdened waste management systems.
The forum also featured presentations by Emeritus Professor Buddhi Marambe, Prof. Renuka Silva and Dr. Hiranya Jayawickrema.
NSF Chairman Dr Sudath Samaraweera and Director General Prof. Shiromi Perera were also present.
The scientists stressed that unless urgent measures are introduced to curb food wastage, strengthen storage and transportation systems and transform public attitudes towards food consumption, Sri Lanka could face a deepening food security crisis while mountains of edible food continue to be dumped daily.
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