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Finance Ministry, Hungary’s Exim sign deal on debt restructuring
The government of Sri Lanka and the Hungarian Export Credit Insurance Plc. have signed a bilateral agreement in relation to the External Debt Restructuring Process, according to the Ministry of Finance, Planning and Economic Development.
The Finance Ministry said the signing of the agreement with the Hungarian Export Credit Insurance Plc, is a significant milestone of the External Debt Restructuring Process and testament to the government’s commitment to conclude the restructuring process as soon as possible to restore debt sustainability and thereby revamp Sri Lanka’s economy.
Following bilateral discussions after the conclusion of the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC), the Hungarian Export Credit Insurance Plc. has agreed to provide a debt relief measure by rescheduling the outstanding debts, the Ministry noted.
The estimated rescheduled debt under this agreement amounts to Euro 30 million.
The signing of the agreement will pave the way to developing further the deep and long standing bilateral relationships between Hungary and the Government of Sri Lanka, the Ministry added.
The bilateral agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning, and Economic Development, on behalf of the government and Györgyi Rehoregh, Director, Foreign Corporate Risk Management & Claims and Recoveries Directorate, and Dr. Adrienn Hegyi Szénásiné, Head of Claims and Recoveries, Foreign Corporate Risk.
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Advisory for low pressure area over South-east Bay of Bengal Sea area
The Natural Hazards Early Warning Centre of the Department of Meteorology has issued an advisory at 11.30 pm on 05 January 2026 regarding a low pressure area over South-east Bay of Bengal Sea area.
The low-level atmospheric disturbance in the Bay of Bengal, to the southeast of the Sri Lanka has intensified into a low-pressure area.
Hence, showery condition over the island, particularly
in the Northern, North-Central, Eastern, Uva and Central provinces is expected to enhance from January 8th.
The Meteorological Department is constantly monitoring the behavior of the system.
The general public are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regards.
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US raid on Venezuela violation of UN Charter and intl. law: Govt.
Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath yesterday (05) told a media conference at his Ministry that the UN should deal with the US for violating international law.
Herath, who is also a senior member of the ruling National People’s Power (NPP) party’s National Executive Council, in addition to being a member of the JVP politburo, emphasised that member states couldn’t violate UN Charter and international laws.
The Minister said so when The Island sought the government’s position on the abduction of legally elected Venezuelan President Nicolás Maduro and his wife in a lightning raid carried out amidst heavy air strikes on that country. We raised the issue at hand pointing out that there were persistent allegations regarding US and Indian interventions in the 2022 regime change operation here and that the NPP finalised defence agreements with Washington and New Delhi.
Minister Herath said that Sri Lanka backed the ongoing UN Security Council bid to deal with the developing situation in Venezuela.
Herath was flanked by Deputy Foreign Minister Arun Hemachandra and Deputy Tourism Minister Prof. Ruwan Ranasinghe.
Minister Herath said that the UN Security Council was scheduled to take up this issue today. The US is one of the five members of the UN Security Council.
In terms of the UN Charter, UN members are to refrain from the “use of force” against the territorial integrity or political independence of any state. Another permanent member of the UN Security Council, France, broke ranks with the Western block to condemn US action. France unequivocally declared that the US operation was a “violation of sovereignty.
Minister Herath didn’t respond to the query whether he discussed the issue at hand with President Anura Kumara Dissanayake.
While pointing out that Sri Lanka had been subjected to foreign interventions, The Island sought the position the JVP in respect of US President Donald Trump threatening to move against Mexico, Cuba and Colombia as the party always took a strong stand against US actions. Declaring that his response would be for the government and not the JVP, Minister Herath said that there was a way to deal with situations through the UN.
Minister Herath strongly defended recently signed agreements with India and US pertaining to defence. Stressing that both agreements were beneficial, Minister Herath pointed out that they weren’t defence agreements but security cooperation arrangements.
The US and Sri Lanka signed a Defence Memorandum of Understanding (MoU) in November 2025, formalising defence cooperation under the State Partnership Programme (SPP) with the Montana National Guard. The MoU with India was signed in April, 2025. It was among seven MoUs.
Referring to devastating Cyclone Ditwah, the Minister said that India provided material support under the MoU signed in April whereas the US provided 10 helicopters to the SLAF recently.
Responding to a query on US-Sri Lanka tariff negotiations, Minister Herath said that about 95% of the negotiations have been finalised.
At the onset of the briefing, Minister Herath and Deputy Ministers Prof. Ranasinghe and Arun Hemachandra explained how the tourism sector and expatriate Sri Lanka work force contributed to the national economy.
Referring to Central Bank figures, they declared that tourism had brought in USD 3.2 bn whereas expatriate workers contributed USD 7.19 bn up to November last year. Once the Central Bank made available December figures it could reach USD 7.8 bn, they said. Tourism and expatriate work force together brought in as much as USD 11.6 bn, they declared, expressing hope 2026 would definitely be better.
Although the devastation caused by Cyclone Ditwah caused concerns that it may cause a significant drop in tourist arrivals, a steady flow of visitors paved the way for a comfortable 15% increase in arrivals by end of 2025, they said.
Minister Herath said that the government was happy that the country recorded the highest number of tourist arrivals this year.
By Shamindra Ferdinando
News
Ban on foreign research vessels: FM promises decision within two months
Foreign Minister Vijitha Herath yesterday said that the government would announce its decision on the ban on foreign research vessels entering Sri Lankan waters.
Addressing the media at the Foreign Ministry, Minister Herath, in response to a query, said that they were in the process of addressing the issue.
Former President Ranil Wickremesinghe declared a moratorium on the entry of foreign research vessels during 2004. Although the NPP government, in December, 2004, declared its position would be made known soon, the decision was not taken during last year. Wickremesinghe took that decision under intense Indian and US pressure to deny entry of Chinese research vessels (SF)
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