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IMF hopes to complete Sri Lanka aid talks ‘as quickly as possible’

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The International Monetary Fund (IMF) intends to complete talks with Sri Lanka “as quickly as possible,” Managing Director Kristalina Georgieva said on Wednesday, hours before the Parliament voted Acting President Ranil Wickremesinghe as the President.

Speaking with Nikkei Asia in Tokyo, Georgieva said the fund was “very deeply concerned about the well-being of the people in Sri Lanka,” which has been gripped by severe shortages of fuel, food and other essentials after its foreign reserves dried up.

Frustrated citizens have turned their anger on the government, clouding the outlook for debt restructuring and driving once-powerful President Gotabaya Rajapaksa to go into exile and resign last week. On Wednesday, the Sri Lankan parliament elected Ranil Wickremesinghe as his replacement.

Georgieva vowed that “the moment there is a government that we can continue our discussions with, our team will be there.” She added that she was “very hopeful that based on the good technical work we have already done, and the fact that this technical team of Sri Lanka is there, we can complete program negotiations as quickly as possible.”

Wickremesinghe is no stranger to the IMF, as a finance minister and six-time prime minister who has had a hand in negotiations. But he is deeply unpopular with the public.

Georgieva said that the IMF would work with any Sri Lankan administration “as long as the next leader enjoys support and has the longevity to lead the country.”

Sri Lanka is not the only South Asian country facing serious economic pressure. Others include Pakistan, with which the IMF recently reached a staff-level agreement to extend about $1.2 billion in aid, and the Maldives, whose debt-to-gross domestic product ratio stood 123.4% last year according to the IMF’s estimate.

“It is very important for all countries that have had that burden to stare it in the face and not pretend that somehow the problem can go away,” Georgieva warned. “Because it won’t.”

The managing director, who was stopping in the Japanese capital after attending the Group of 20 finance ministers meeting in Indonesia last week, went on to say: “Countries that are faced with severe problems of bad management need to understand that, in this context, markets are jittery. Sentiment is such that there is more anxiety. So if you need to be prudent in good times, you have to be even more prudent in bad times where we are today.”

In the case of Sri Lanka, which “pre-emptively” defaulted on its foreign debt for the first time earlier this year after COVID-19 devastated its core tourism sector, the government was due to submit a debt restructuring plan to the IMF by next month.

“What we would need for the program is financial assurances that will be sustainable, not immediately, but that we have a credible plan to get to that point,” Georgieva said. She added that the incoming government has “a very important role to play, reaching out to both bilateral creditors and private-sector creditors.”

Sri Lanka’s large creditors include Japan, China and India. Georgieva said that she has discussed the situation with the countries during her Asia trip, and was encouraged because “there is an understanding that protracted negotiations are simply not viable, that there has to be decisive action as early as the weeks after a [new] government is in place.”

More broadly, on the global economy, Georgieva said that the IMF will further lower its projection for global GDP growth when it releases its latest World Economic Outlook on July 26. This will mark the third downgrade this year alone. In April, the IMF lowered the outlook for 2022 to 3.6% from 4.4% in January.

She said that the new growth projections would remain in positive territory both for 2022 and 2023. But the downside risks, such as the Ukraine war and inflation, “remain very present.”

“The risk of recession has gone up,” she said.

Georgieva said there will be a “quite significant downgrade” for China, from its 4.4% growth forecast in the IMF’s April projections due to the impact of COVID-19 lockdowns and real estate problems.

She noted that Beijing has started to use monetary as well as fiscal policy levers, but said the question is “how quickly they can produce results.”

When asked about the weakening Japanese yen and the Bank of Japan’s monetary policy, she pointed out that Japan is an export-oriented economy. Hence, the exchange rate is helping Japanese exporters.

“The economy is not yet achieving its inflation target [of 2%] in a sustained manner,” she said. “And therefore, monetary policy accommodation remains the right choice.”



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New education reforms for grade one officially launched

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Minister of Education, Higher Education and Vocational Education, Prime Minister Dr. Harini Amarasuriya stated that the new education reforms lay the essential foundation for nurturing a future generation enriched by values and compassion, and that the Government has undertaken the responsibility of providing every child with a quality education in a prosperous country.

The Prime Minister made these remarks while addressing the national programme to implement the new education reforms for Grade One in 2026, held on Thursday (29) at the WP/ Jaya / Gunasekara Primary School in Athurugiriya.

On this occasion, the Prime Minister planted a sapling together with students on the school premises and inspected the modernized Grade One classrooms developed under the new education reforms, engaging in friendly conversation with the students.

In parallel with the implementation of the new education reforms, and to symbolically mark the admission of students to Grade One across the island, the Prime Minister entered students’ names into the school admission register at the Gunasekara Primary School, Athurugiriya. Subsequently, school uniforms and text books were distributed to the students.

Prime Minister Dr. Harini Amarasuriya further stated:

Reducing the weight of school bags and creating a pressure-free learning environment so that children come to school with joy is a remarkable feature of these new education reforms. We are committed to turning the ’Dream School’ concept, which is aimed at creating a pleasant school environment into a reality. Further, plans are currently being underway to implement the education reforms that could not be implemented for Grade Six students in 2026 in the future.

Under the new reforms, building a foundation for Science, Technology, Engineering and Mathematics (STEM), engaging in environment-related activities based on scientific principles, and strengthening the teaching of English and the second language form the core of primary education. For decades, the country followed a competitive education model limited largely to textbook-based knowledge. As this system has contributed to children becoming disengaged from education, the Prime Minister emphasized that it is the Government’s responsibility to ensure every child’s right to education.

The Government is working to establish a student-centred education system instead of a teacher-centred one. Accordingly, this education reform can be described not merely as a curriculum change, but as a transformational change across the entire education system.

Within this transformative process, special attention has been given to protecting children’s mental freedom, with the primary objective of nurturing balanced future citizens. Plans have also been developed through these reforms to safeguard the professionalism of teachers and to further enhance their capacities.

We will never allow a child’s education to be determined by their parents’ financial capacity. We confidently declare that, as a Government, we have undertaken the responsibility of safeguarding your child’s future.

The event was graced by the presence of members of the Maha Sangha and leaders of all religions, and attended by the Deputy Minister of Education and Higher Education Dr. Madhura Senevirathna, Deputy Minister of Vocational Education Nalin Hewage, Deputy Minister of Mass Media Dr. Kaushalya Ariyarathne, Member of Parliament Asitha Niroshan, Mayor of Kaduwela Ranjan Jayalal, Secretary to the Ministry Nalaka Kaluwewa, Principal of Athurugiriya Gunasekara Primary School Nadika Dharmadasa, along with other officials and parents.

[Prime Minister’s Media Division]

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Teacher unions cry foul over muddled educational reforms

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Joseph Stalin

Flawed, poorly planned and rushed education reforms could widen inequalities between urban and rural schools, teachers’ unions warned yesterday, criticising the government’s newly launched education reform programme, despite its formal inauguration earlier in the day.

Union leaders said essential resources needed to implement the reforms, including teachers’ guides, have yet to be issued, raising serious concerns over how educators are expected to deliver lessons under the new framework.

They urged the government and the Education Minister to suspend the rapid rollout of the reforms and undertake proper planning and consultations before implementing them nationwide.

Ceylon Teachers’ Union (CTU) Secretary, Joseph Stalin, addressing a press conference in Colombo on Thursday, cautioned that the reforms risk deepening existing disparities between urban and rural schools.

He drew attention to the new Grade 01 textbook, which reportedly includes 42 QR codes aimed at supporting digital learning. Stalin questioned the practicality of this approach for rural schools, where access to the internet and digital devices remains limited or non-existent.

“How are children in rural schools expected to access these facilities when internet connectivity and digital devices are either unavailable or very poor?” he asked.

Stalin also raised concerns over the absence of a clear long-term vision behind the reforms, stating that even policymakers have failed to clearly articulate the academic or developmental outcomes students are expected to achieve by the time they complete Grade 13.

Teacher preparedness was another major concern, he said, noting that educators assigned to teach under the new system have received training only for the first school term, while key instructional materials remain incomplete.

“Teachers do not even have a proper printed teachers’ guide,” Stalin said, adding that the guide is currently available only online, making it further disadvantageous to schools with weak digital infrastructure.The unions warned that proceeding with the reforms under such conditions could undermine the quality of education and place both teachers and students at a disadvantage.

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Johnston, two sons and others further remanded for alleged misuse of  Sathosa lorry

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Johnston

Former Minister Johnston Fernando, his two sons  and two others were further remanded until 13 February by the Wattala Magistrate’s Court yesterday.The group was arrested by the Police Financial Crimes Investigation Division (FCID) over allegations of misusing a Sathosa lorry during Fernando’s tenure as Minister of Cooperative and Internal Trade.

It is alleged that the vehicle was used for operations linked to an ethanol company reportedly owned by Fernando, resulting in an estimated loss of Rs. 2.5 million to the state.

Fernando was arrested on 05 January. Earlier, on 09 January, a bail request was denied, and the suspects were ordered to remain in remand custody.

The investigation also led to the 30 December arrest of Fernando’s son, Johan Fernando, in Kurunegala. Former Sathosa Transport Manager Indika Ratnamalala was also taken into custody, accused of preparing forged documents related to the case.

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