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India expected to send ‘positive’ message on debt during Jaishankar’s visit to Lanka

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Jaishankar

Indian External Affairs Minister S. Jaishankar’s visit to Colombo on Thursday will focus on “supporting Sri Lanka” in its current economic crisis, government sources said, adding that talks are ongoing in the field of energy security, food security, currency swap arrangements as well as talks about restructuring Sri Lanka’s debt. The two-day visit is expected to see some announcements, said a report by The Hindu yesterday.

It said: “India is expected to give a positive response to Sri Lanka’s requirements, in keeping with India’s support last year as well,” said a source, citing India’s combined package of about $4 billion including loans, credit lines for the purchase of essentials and a loan deferment through the Asian Clearing Union.

In addition, talks are expected on two possible MoUs— on the Trincomalee development project and the long-pending plan for a cross-strait transmission line that would allow Sri Lanka access to India’s plans for an energy grid along with other countries like Nepal, Bhutan and Bangladesh.

The sources stressed that while assisting Sri Lanka with its current economic difficulties is a priority, Jaishankar’s visit, his first with the six-month-old government in Colombo, would see a comprehensive review of bilateral ties. </p><p>Meanwhile, diplomatic sources said that the support, in the form of “written financial assurances” from India would be critical for Sri Lanka as it works with its other creditors to resolve the economic crisis.

Announcing the visit by EAM Jaishankar, Lankan President Ranil Wickremesinghe said that he had discussed the need for the debt restructuring programme with all Sri Lanka’s creditors, including the 22-nation ‘Paris Club’ of 22 developed nations that hold much of the global debt and discuss solutions to debt crisis together.

“Japan and the Paris Club, two of our major creditors, have expressed their willingness to assist. We have already begun talks with India and China. According to the discussions with China Exim Bank recently, we’re currently debating on how to restructure our debt. The Chinese side has agreed to move quickly,” Wickremesinghe told a group of businessmen last week.

He said that Sri Lanka’s “only” option was to seek the support of the International Monetary Fund (IMF) for nearly three billion dollar bailout, and was also hopeful of a package from the Asian Development Bank (ADB).

“We discussed with China’s EXIM Bank this week and by now we have commenced exchanging views on it. India’s Foreign Minister is scheduled to visit Sri Lanka on the 19th to discuss the debt restructuring process. We are proceeding with these activities gradually,” the Sri Lankan President said to a separate group of trade union representatives, indicating the visit by Japanese State Minister of the Cabinet Office Satoshi Fujimaru and the ongoing visit of Chen Zhou, Vice Minister of the International Department, the Communist Party of China Central Committee.

After Chen’s meeting with President Wickremesinghe, the Chinese Embassy in Sri Lanka said the talks were “friendly and fruitful”, and quoted Wickremesinghe as saying that he “looked forward to China’s support in restructuring Sri Lanka’s debt at the moment and our economy in the near future”.

Sri Lanka had hoped to finalise its IMF bailout package, but missed a December deadline due to the delay in concluding debt restructure talks. It now hopes to complete the talks in the first quarter of 2023.



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All set for Colombo rally against govt.’s tax policies

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People’s Struggle Movement’s National Executive Council members Wasantha Mudalige and Jayantha Amarasinghe speaking to the media yesterday

The Frontline Socialist Party-backed People’s Struggle Movement is set to stage a protest march in Colombo today (03) against what it describes as the growing tax burden on the public and the rising cost of living.

The organisers are due to commence the “Colombo March Against Unjust Taxes” at noon from Campbell Park, Borella. The FSP has also been mobilising support for the protest in Colombo and its suburbs in the run-up to the event.

People’s Struggle Movement National Executive Council member Wasantha Mudalige, speaking at a media briefing in Nugegoda yesterday (02), called on the public to join the protest, saying the movement intended to bring the tax burden faced by ordinary people to the forefront.

Mudalige alleged that successive tax measures had placed an excessive burden on households, particularly through taxes on food and educational items. He also criticised the Government over what he described as the high cost of basic food items and the difficulties faced by parents in meeting their children’s educational expenses.

He accused the Opposition of failing to adequately address the issue, claiming that opposition parties raised such concerns, mainly during election periods.

Mudalige also criticised the Government for what he described as a departure from promises made before the 2024 presidential election regarding taxes on educational equipment.

He questioned the tax burden on food items, citing figures of Rs. 100 per kilogramme on dried sprats, Rs. 310 per kilogramme on chicken and Rs. 11 per egg.

He further alleged that while ordinary people were bearing a heavy tax burden, wealthy groups were receiving tax concessions. He also criticised the Government’s economic programme and its implementation of measures associated with the International Monetary Fund (IMF).

The movement has framed today’s protest as part of a broader campaign over the cost of living and taxation. The People’s Struggle Alliance has separately announced that the Campbell Park demonstration will be the first in a series of public actions, with further protests planned in November.

Mudalige said the movement would continue to take the issue to the streets and urged the public to participate in today’s demonstration.

People’s Struggle Movement National Executive Council member Jayantha Amarasinghe also addressed the press.

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Yoshitha R money laundering trial postponed

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The Colombo High Court yesterday postponed the trial in the case filed under the Prevention of Money Laundering Act against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa.

The case was taken up before Colombo High Court Judge Udesh Ranatunga, with Yoshitha Rajapaksa, who is currently out on bail, appearing in court.

The trial was postponed as the President’s Counsel appearing for the defence was indisposed.

The Attorney General has filed the case against Rajapaksa, alleging that he committed an offence under the Prevention of Money Laundering Act by purchasing five plots of land in Dehiwala and Ratmalana, worth more than Rs. 73 million.

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Lankan troops test mettle in Russian war games

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Lankan Army troops participating in Exercise ‘Wolverine Path II–2026’ in the Russian Federation

A contingent of the Sri Lanka Army, comprising 20 officers and 55 other ranks, participated in the combined military exercise ‘Wolverine Path II–2026’, conducted with the Armed Forces of the Russian Federation in Vladivostok, Russia, from September 18 to 25.

According to the Ministry of Defence, the exercise primarily focused on counter-terrorism operations and provided participating troops with training in a challenging combined operational environment.

The exercise included a range of tactical activities, including heli-rappelling, close-quarters battle (CQB), ambush operations, sniper firing, drone operations, buggy training and combat medical support.

The Ministry said the training enabled Sri Lankan troops to further develop their combat skills, tactical coordination and operational readiness.

It also provided an opportunity for the two militaries to exchange professional knowledge, operational experience and tactical expertise. Sri Lankan personnel gained exposure to training methodologies, tactical approaches and operational practices adopted by the Russian Armed Forces, the Ministry said.

The participation also enabled the Sri Lankan contingent to identify lessons from the joint training and share its own experiences with the Russian military.

The Sri Lankan contingent returned to the country following the exercise and arrived at Mattala Rajapaksa International Airport on September 28.

The Ministry said participation in the exercise contributed to enhancing the professional knowledge, tactical awareness and operational preparedness of Army personnel while promoting military-to-military cooperation, mutual understanding and professional relations between Sri Lanka and Russia.

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