News
Default:NY court turns down GoSL motion
A New York court has denied a motion by the government of Sri Lanka to dismiss a lawsuit brought by Hamilton Reserve Bank following the default by the GOSL on a sum of more than $257 million of bonds and interest that Hamilton had invested in.The case would therefore proceed, to decide on whether the GOSL must immediately pay the outstanding amount, agency reports said.
Denise Cote, Judge of the District Court of the Southern District of New York, on March 24 dismissed the motion filed by the law firm representing the GOSL, Clifford Chance US LLP.
St. Kitts-Nevis, Hamilton Reserve Bank, which is being represented by the law firms of Bleichmar, Fonti & Auld LLP; and Jenner & Block LLP, brought the action for breach of contract to recover the principal sum of $250,190,000 plus interest of 7,349,331.25 of the bonds.
The 10-year bonds matured on July 25, 2022. The registered holder of the bonds is New York-based Cede & Co., while Hamilton Reserve Bank is the beneficial holder. Cede & Co. has authorized Hamilton Reserve Bank to take action on behalf of Cede & Co. to recover the amounts.
The GOSL’s argument was that Hamilton Reserve Bank had no authority as the registered holder of the bonds is Cede & Co. In dismissing the motion, the court recognised the validity of Cede & Co’s authorization to Hamilton Reserve Bank.
News
Complaint of custodial deaths and torture submitted to UN
The Committee for Protecting Rights of Prisoners (CPRP) has complained to the UN regarding custodial deaths.
Executive Director of the Committee, Attorney-at-Law Senaka Perera told The Island that they had submitted written submissions to the visiting UN Subcommittee on Prevention of Torture (SPT) on Monday (15). “We are confident that they’ll take up the issues at hand with the government and take tangible measures to improve the conditions in prisons and detention facilities,” Perera said.
The SPT is here from 15 to 24 June. The visiting delegation consists of Aisha Shujune Muhammad, Head of Delegation (Maldives), Jakub Julian Czepek (Poland), Nika Kvaratskhelia (Georgia), Anica Tomsic (Croatia) and two human rights officers from the Office of the High Commissioner for Human Rights.
Claiming that there had been 184 prison deaths in 2024, the Committee asserted that though there was a drop in the number of cases, the deaths caused by underlying health complications and systemic issues weren’t available at the moment.
According to a copy of the submissions made to the SPT, received by The Island, there had been seven custodial deaths this year alone, reported from various parts of the country.
The Committee took a very critical position, while Foreign Minister Vijitha Herath assured the visiting delegation that the government didn’t tolerate torture at all.
The Ministry statement Monday night quoted Herath as having described the government response as zero tolerance policy.
The Committee for Protecting Rights of Prisoners also dealt with several other contentious issues, including special treatment granted to those with political connections and privileged backgrounds. Perera alleged that in spite of a change of government, in 2024 September, the much anticipated improvements failed to materialise and the continuing custodial deaths highlighted the crisis in the prisons and detention facilities.
According to the Committee, the situation was so bad and further deteriorating in overcrowded prisons, the national overcrowding rate has reached an unsustainable 286.6%, with some facilities, like the Vavuniya Remand Prison, exceeding capacity by 300%.
A significant portion of this population (65.4%) consists of persons not convicted awaiting trial, the Committee said, urging the SPT to look into the pathetic situation.
The Committee also complained of torture and ill-treatment at some detention facilities. There had been cases of lawyers, visiting detention centres at Welisara and Boossa, been subjected to degrading and humiliating searches, including forced removal of clothing.
The Committee also brought to the SPT’s notice how the Supreme Court, on 14 December, 2023, held the former Inspector General of Police (IGP), Deshabandu Thennakoon, personally responsible for torture. The failure on the part of prison authorities to grant inmates a fair hearing during internal investigations, too, has been raised by the Committee.
Among the other issues that had been raised were enforced disappearances, health and medical conditions, food, water and sanitation, corporal punishments and the operation of detention facilities within military bases.
Referring to the enforced disappearance of Gonapinuwala Kapila Kumara de Silva on 27 March, 2024, the Committee alleged that the Attorney General failed to take action against the perpetrators, believed to be members of the Special Task Force (STF)
The Committee alleged that in spite of them submitting formal complaints and an urgent letter to the Attorney General demanding prosecution under the International Convention for the Protection of All Persons from Enforced Disappearances Act, No. 5 of 2018, the AG took no meaningful action.
Consequently, CPRP filed a Writ of Mandamus petition in the Court of Appeal (CA/WRIT/185/26) against the Attorney General and other officials, seeking judicial intervention to compel investigation and prosecution. The case remains pending
by Shamindra Ferdinando
News
India provides military stores worth USD 5.5 mn to SL
Responding to Sri Lanka’s request, India has approved military stores worth USD 5.5 million to Sri Lanka Army on gratis basis from Indian Army’s operational stocks.
The IHC spokesperson said: “The Sri Lanka Army faced shortage of these military stores, thereby affecting its operational preparedness. The Government of India agreed to meet this urgent requirement within a month and it also agreed to transship these stores onboard Indian Naval Ship Sharda, which was specially detailed to transport these stores to Colombo on gratis basis. The handing over ceremony was attended by H.E. Santosh Jha, High Commissioner of India, Colombo, Air Vice Marshal SampathThuyacontha (Retd), Secretary Defence, Government of Sri Lanka and Lt Gen Lasantha Rodrigo, Commander of the Sri Lanka Army.”
News
India promotes INR-LKR settlement mechanism
Central Bank Governor Dr. Nandalal Weerasinghe on Monday (15) outlined the recent policy measures undertaken to strengthen the financial framework supporting INR-LKR transactions and emphasized the need to strengthen trade and investment linkages between both countries.
Dr. Weerasinghe said so in his keynote opening remarks at a roundtable on “Rupee to Rupee Strengthening the India-Sri Lanka Commercial Corridor” held in Colombo.
The High Commission of India in Sri Lanka organised the roundtable that brought together senior representatives from government institutions, banking and financial sector organisations, industry leaders, importers, exporters, and business stakeholders from both countries to discuss opportunities for deepening India-Sri Lanka economic and commercial engagement through enhanced use of local currencies.
The Roundtable commenced with welcome remarks by Indian High Commissioner to Sri Lanka Santosh Jha, who highlighted the growing economic partnership between India and Sri Lanka and underscored the importance of local currency settlement mechanisms in facilitating bilateral trade, investment and financial connectivity.
Presentations were subsequently made by State Bank of India and Indian Bank, focusing on the operational aspects of INR-LKR trade settlements, available banking solutions, and recent policy guidelines permitting the disbursement of Indian Rupee-denominated loans through Authorised Dealer Banks in Sri Lanka.
A dedicated industry panel brought together leading voices from Sri Lanka’s banking and corporate sectors, including representatives from Commercial Bank, Seylan Bank, Standard Chartered Bank, AMW, DHT Cement, Lanka Spin Pvt. Ltd., Nithya Paper and Boards Lanka Pvt. Ltd.
Representatives shared practical experiences, benefits, challenges and opportunities related to the use of local currencies in trade and investment transactions, and explored pathways for further strengthening the commercial corridor between India and Sri Lanka.
Discussions during the Roundtable highlighted the growing acceptance of the INR-LKR settlement mechanism and its potential to facilitate smoother cross-border transactions, improve liquidity management, lower transaction costs, and enhance resilience in bilateral trade. Participants also emphasized the need for continued awareness-building, stronger banking linkages, and greater private sector participation to unlock the full potential of local currency settlements.
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