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India extends USD 900 mn facilities as Sri Lanka struggles to repay loans

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As Sri Lanka is struggling to repay a US$ 500 million international sovereign bond (ISB) by the 18 January deadline whilst running short of reserves to purchase essential needs of the country, the Reserve Bank of India (RBI) will extend over US$ 900 million facilities to Sri Lanka, comprising Asian Clearing Union (ACU) settlement of over USD 500 million and currency Swap of USD 400 million.

Indian High Commissioner to Sri Lanka Gopal Baglay yesterday communicated this message to Sri Lanka’s Central Bank Governor Ajith Nivard Cabraal when the duo met at the latter’s office, according to the official Twitter handle of the CBSL Governor.

The Indian High Commissioner noted during the meeting that the steps were in line with India’s strong commitment to standing with Sri Lanka for its economic recovery and growth.

Governor of the Central Bank Ajith Nivard Cabraal tweeted yesterday that he had had a fruitful discussion with the Indian High Commissioner where he had confirmed a SAARC Swap by the Reserve Bank of India (RBI) and other forms of bilateral cooperation.

“Sri Lanka is at a decisive moment in raising overseas funds without going to the IMF so this signifies a positive development in mobilising funds from Sri Lanka’s friendly countries to tide over its current reserves crisis,” an analyst told The Island.

On 11 January, Vice President of ADB Shixin Chen met with the CBSL Governor where they had discussed ADB’s future programme in Sri Lanka, their Country Assistance Strategy and the upcoming ADB AGM to be held in Colombo in May 2022.

Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks. A Swap is a contract through which two parties exchange the cash flows from two different financial instruments.



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Activists demand implementation of Easter Commission recommendations

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Nanayakkara

Religious and civil society leaders have called on President Anura Kumara Dissanayake to begin implementing the recommendations outlined in the Special Presidential Commission that investigated the Easter Sunday terror attacks without further delay.

Addressing a press conference held at the Centre for Society and Religion in Colombo, Lawyer Manoj Nanayakkara stated that 71 months have passed since the Easter Sunday attacks, yet justice has not been served for the victims.

“We are approaching the sixth anniversary of this heinous crime, which claimed nearly 300 lives and wounded twice as many others. President Anura Kumara Dissanayake had promised to conduct a fresh investigation into this crime. In the meantime, he could implement the recommendations of the Special Presidential Commission that probed the Easter Sunday terror attacks. This would demonstrate that the current government is keeping its word to deliver justice to the victims,” Nanayakkara said.

He also commented on Ven. Galagodatte Gnanasara Thero, who has been holding press conferences, claiming to have information related to the terror attacks and to know the masterminds behind them. “Our question is why he does not go to the law enforcement agencies and share the information he claims to possess. There is no purpose in making such statements at press conferences. As a citizen, his duty is to share this information with the investigating authorities.

Therefore, we believe that Gnanasara Thero is engaging in a political ploy at the behest of someone else. He should be aware that intentionally withholding information about a brutal massacre and failing to share it with the investigating authorities is an offence punishable under the Penal Code,” Nanayakkara said.Rev. Fr. Julian Patrick Perera, Rector of St. Joseph Vaz Deva Dharma Niketanaya, also addressed the press conference.

By Norman Palihawadana

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Modi three-day visit formally announced

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The Colombo foreign ministry Friday formally announced Indian Prime Minister Narendra Modi’s visit to Sri Lanka when he will have bilateral talks with President Anura Kumara Disanayaka and Prime Minister Dr. Harini Amarasuriya.

While in Sri Lanka,Modi is scheduled to visit Anuradhapura to pay homage to the sacred Sri Maha Bodhi and will inaugurate several projects implemented in Sri Lanka with the assistance of the Government of India, a ministry release.

A number of Memoranda of Understanding inked between the two countries are also expected to be exchanged during this visit, it added.

The Indian PM will be accompanied by the Minister of External Affairs, the National Security Advisor, Foreign Secretary and other senior officials of the Government of India.

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COPE investigates drug supplies and preferred favourite supplier

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It was revealed in the Committee on Public Enterprises (COPE) that a private company named ‘Savorite’ was issued Waiver of Registration (WoR) certificates to import 38 types of medicines in 2022 without the evaluation of the National Medicines Regulatory Authority (NMRA).

The former Secretary to the Ministry of Health also informed the Committee that the former Minister of Health had given instructions to select this private company to import medicines in this way, parliament sources said on Friday.

This was disclosed when the COPE met in Parliament recently under the chairmanship of MP Dr Nishantha Samaraweera, to examine the Auditor General’s reports for the years 2022, 2023 and 2024 and the current performance of the NMRA.

The Committee Chair informed the committee that on December 30, 2022, the NMRA had issued Waiver of Registration (WoR) certificates to a private company named ‘Savorite’ for the import of 38 types of medicines submitted through unsolicited proposals without the evaluation of the NMRA.

The Committee Chair said that the NMRA has abdicated its responsibility, stating that the purpose of establishing the NMRA is to ensure the quality, safety and efficacy of those medicines and that it cannot be handed over to the Medical Supplies Sector.

Former members of the Board of Directors of the NMRA said that since the import of medicines through a special pathway with prior approval was carried out, the Board of Directors could not grant permission for it without conducting a proper evaluation. Therefore, they said that they did not accept responsibility in this regard.

Accordingly, this matter was discussed at length in the committee, and it was revealed that the former Minister of Health had instructed to select a private company called ‘Savorite’ to import the medicines in short supply for three months.

Meanwhile, the Committee also discussed at length the Cabinet Memorandum submitted by the former Minister of Health on September 26,2022. The Committee Chair inquired from the Ministry of Health officials about the fact that a large number of medicines would reach zero levels within the next three weeks from the date of submission of the relevant Cabinet Memorandum.

The officials who responded said that the information had been added to the Cabinet Memorandum based on the information obtained from the existing database regarding medicines. However, the committee Chair said that it was unacceptable for a large number of medicines to reach zero levels at the same time and that the relevant responsible officials had acted irresponsibly until such a level was reached.

The Auditor General, who spoke at the time, stated that the medicines that were ordered and to be received in advance have also been imported, citing that the medicines have reached zero levels.

Accordingly, the committee chair instructed the officials to submit a full report to the Committee on who were the officials involved in preparing this Cabinet Memorandum. The Chair further stated that a full report regarding the import of these medicines will be prepared by the Committee and submitted to Parliament, and that necessary action will be taken expeditiously.

MPs Mano Ganeshan, Nalin Bandara Jayamaha, S. M. Marikkar, Chaminda Wijesiri, Attorney-at-Law Nilanthi Kottahachchi, Chandima Hettiarachchi, Asitha Niroshana Egoda Vithana, Kosala Nuwan Jayaweera, Sudath Balagalla, Dr S. Sri Bavanandarajah, Lt Com (Retd.) Prageeth Madhuranga and Samanmali Gunasinghe were present in this committee meeting.

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