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Info about USD 4.2 bn debt deal with China shared with other creditors – CBSL Chief
Sri Lankan government had shared the details and the conditions of the 4.2 billion dollar debt deal with China with other creditors, Governor of the Central Bank Dr. Nandalal Weerasinghe told Bloomberg.Governor Weerasinghe expressed optimism about restructuring Sri Lanka’s debt through the official creditors committee, aiming to secure IMF support for a 330 million dollar payout by year-end.
The recent surprise debt deal with China had raised concerns about transparency, but Weerasinghe has now shared its details with the IMF and creditors, Bloomberg said.Sri Lanka seeks to stabilise its economy after last year’s severe crisis and default on debt, Bloomberg has reported.
Dr. Weerasinghe highlighted the progress, i.e., inflation had dropped to 1.5%, forex reserves had surged to $3.6 billion, and shortages of essentials had eased. He reaffirmed the Central Bank’s hands-off approach to the exchange rate, intervening only to curb volatility and bolster reserves.
The country’s currency rallied 12% this year, a stark reversal from its 45% decline in 2022, and IMF funds bolstered hopes for fiscal recovery, driving nearly 70% returns on Sri Lanka’s dollar bonds, Bloomberg reported.
Weerasinghe emphasized adherence to IMF targets, seeking to increase reserves to around three months of import cover while aiming for a more flexible exchange rate. Clearing uncertainties in debt restructuring is expected to expedite monetary policy transmission, narrowing the gap between policy and market rates.
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Prioritize rebuilding the livelihoods of disaster-affected communities – President
President Anura Kumara Dissanayake has instructed officials to give top priority to restoring the livelihoods of communities affected by the disaster. He emphasized the need to expedite compensation payments for damages and to take immediate measures to revive the agriculture, fisheries and industrial sectors.
The President further directed that all compensation payments for crop damage be completed before December 25.
These instructions were issued during a special District Coordinating Committee meeting held on Saturday (13) morning at the Puttalam District Secretariat.
President Anura Kumara Dissanayake described the recent cyclone as one of the largest disasters the entire country has faced in recent times. He commended the dedicated efforts of the tri-forces, Police and public officials in restoring the lives of affected communities. The President noted that, thanks to their commitment, a significant portion of essential infrastructure including electricity, water supply and roads has already been rehabilitated.
He further emphasized that the Government’s ability to provide such substantial compensation to disaster-affected communities is the result of the strong fiscal discipline of the Government.
Taking into account the challenges that have arisen in the distribution of allowances and aid so far, the President instructed Divisional Secretaries to ensure that compensation is provided strictly to eligible recipients and to fully intervene to prevent any deviation from this policy under any circumstances.
During the meeting, the rehabilitation of damaged highways and bridges in the district was discussed in detail. The President inquired into issues arising during these reconstruction efforts and provided on-the-spot solutions in consultation with the relevant officials.
The construction of the Lower Kala Oya Bridge was also discussed. The President instructed that a temporary bridge be built to meet the needs of the tourism sector. He emphasized that all construction activities should be carried out with a thorough understanding of necessity and proper structural assessments.
The President further highlighted that previous large-scale projects were abandoned without delivering tangible benefits or the intended outcomes. He stressed that future infrastructure development should focus not only on regional needs but also on the broader economic benefits for the country as a whole.
The President inquired about the ongoing efforts to restore electricity supply in the district and emphasized the need to complete these works without delay.
He also reviewed measures being taken to re-establish water supply and instructed provincial authorities to intervene promptly, noting that current well cleaning efforts in the district are insufficient.
Regarding agriculture, the President inquired about preparations by local farmers for the upcoming Maha paddy cultivation. He directed officials to swiftly create a conducive environment for farming, minimize the amount of abandoned land and explore alternative methods to ensure productive use of farmland.
He instructed that all compensation due to farmers be disbursed before December 25, that payments be made regardless of whether the land is in reserves or legally protected areas, and that systematic measures be implemented to prevent cultivation on reserved lands.
The President also highlighted the need for comprehensive soil conservation programmes in areas such as Kalpitiya.
The President emphasized the need to provide fair compensation to those engaged in the livestock sector in order to restore their livelihoods. He also highlighted the importance of obtaining accurate ground-level data and stressed the necessity of introducing legislation to ensure the registration of all livestock farms.
Due to the disaster, 627 houses in the district were completely destroyed, and 20,813 houses sustained partial damage. The President instructed that compensation for the affected families be expedited, emphasizing priority resettlement on government land. Where government land is unavailable, he directed that Rs. 5 million be provided to each family for the purchase of alternative land.
For those whose houses were completely destroyed, the President directed that new housing projects be implemented in a manner that ensures ownership of a house valued at Rs. 5 million for each beneficiary.
Attention was also given to the fisheries sector. Discussions were held on providing assistance for the repair of damaged fishing boats, as well as implementing fair compensation and concessional bank loan schemes for prawn farmers.
President Dissanayake also inquired into the operations at Chilaw Hospital. Authorities informed him that patient admissions and the functioning of several units could resume by next week.
Minister of Public Administration, Provincial Councils, and Local Government and Chairman of the Puttalam District Coordination Committee Chandana Abeyratne, Deputy Minister of Environment Anton Jayakody, North Western Province Governor Tissa Warnasuriya, Government and Opposition Members of Parliament from Puttalam District, Local Government Representatives including the North Western Provincial Secretary, Secretary to the Ministry of Finance Dr. Harshana Suriyapperuma, Puttalam District Secretary, Divisional Secretaries, Government Officials, and Security Forces Representatives were present at the event.
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Ditwah Disaster: 211 people still missing
The Disaster Management Centre (DMC) reported yesterday that 211 people had gone missing following the devastation caused by Cyclone Ditwah.
The disaster has left 639 individuals dead, and 84,674 people from 26,563 families are sheltered in 866 safety centres across the country.
The DMC also confirmed extensive damage to houses. It said about 5,588 had been destroyed and 102,246 others damaged.
Authorities continue to coordinate relief efforts as they assess the full scale of the destruction and work to provide shelter and aid to thousands of displaced persons.
by Chaminda Silva
News
Parliament to have special sitting to approve emergency funding
The government has decided to convene Parliament on 18 December to secure legislative approval for emergency funding for disaster relief.
The special session has been called to allocate funds for relief efforts for those affected by Cyclone Ditwah and for repairs to infrastructure and property damaged by the severe weather.
Officials said the government would submit a supplementary estimate seeking parliamentary approval for the required funds.
A debate will be conducted before the estimate is endorsed by the House.
Parliament adjourned until 06 January, 2026, following the passage of Budget 2026.
by Akitha Perera
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