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Japan cautious on reviving stalled projects, seeks faster debt deal with China

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Japan has asked Sri Lanka to secure a debt restructure deal with China before any discussion on reviving the Light Rail Transit (LRT) project scrapped by former president Gotabaya Rajapaksa, diplomatic sources said.

Foreign minister Yoshimasa Hayashi made it clear during his brief visit to Colombo last week for talks with President Ranil Wickremesinghe that priority must be clinching a debt deal with Beijing before the end of August.

Sri Lanka must have a debt treatment plan ready before the second review of the IMF bailout finalized in March. The release of the second tranche of some $330 million depends on a credible debt restructure plan acceptable to all local and foreign creditors.

“I conveyed my expectations for further progress in the debt restructuring process and stressed the importance of a transparent and comparable debt restructuring that involves all creditor countries, Hayashi said in a statement.

He also welcomed Sri Lanka’s moves to tackle corruption, a key demand of the IMF bailout program.

Sri Lanka wanted more Japanese private investments and a quick revival of the LRT project which was initially estimated to cost about $1.5 billion and fully funded through highly concessionary 40-year loan from Japan. The loan carried an interest rate of 0.1 percent and a 12-year grace period.

The then secretary to Rajapaksa, Punchi Banda Jayasundara and Treasury Secretary Sajith Attygalle who championed the scuttling of the LRT said the project was “not cost effective.”

Officials at the time said they wanted to go with a Chinese developer who had offered to build the LRT at a lower price. However, a “viability charge” in the Chinese proposal meant that Colombo would have end up paying much more than for the Japanese LRT.

Relations between Colombo and Tokyo strained following Rajapaksa’s abrupt cancellation of the LRT in September 2020.

During Hayashi’s visit, the Japanese delegation made it clear that they were cautious about re activating any of the projects given Colombo’s track record of policy inconsistency.

Japan’s Foreign ministry spokeswoman Yukiko Okano also underlined their concerns about opaque Chinese funding and mega vanity projects that got Sri Lanka into a major economic crisis.

Asked if Japan will agree to Colombo’s request for a quick reactivation of the LRT as well as the airport expansion, the central expressway projects, Okano made it clear that they were all “stopped.”

“We will keep discussing (about) these projects with the Sri Lankan government, but in order to make a decision on the new lending for example, then it has to come after the debt restructuring.

“And I think private sector is also watching very carefully how this restructuring process goes forward, because otherwise they also have a stake in this.”

Japan’s main concern about China’s growing presence in Sri Lanka was its funding of mega projects and not so much the increased naval presence in the Indian Ocean region.

“In this region, I think it’s more to do with the big infrastructure projects and we have nothing against you know, Chinese helping other countries to build infrastructure, but as I said, these infrastructure financing has to be in accordance with the international rules, for example on transparency of the terms of the loans or, for example, the labour.

“Using the local labour or using local materials or, you know those standards and as long as their projects comply with these international standards, I think we are fine. But if not, then we have a concern.

“I’m not naming a specific project, but I think this concern is shared not only with the OECD countries, but maybe with the recipient countries too.”



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NPP: Speaker won’t step down, CIABOC can investigate him

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Nihal

* New Auditor General should not have been sworn in before Speaker – Opp.

* Suspended House Dy. Sec. Gen. Chaminda Kularatne takes his case to CA today

General Secretary of the National People’s Power (NPP) Dr. Nihal Abeysinghe yesterday said that there was no need for Speaker Dr. Jagath Wickramaratne to step down in view of the complaint lodged against him with the CIABOC (Commission to Investigate Allegations of Bribery or Corruption).

NPP General Secretary said so in response to The Island query whether the parliamentary group of the ruling party discussed the growing Opposition calls for the Speaker, who is also the Chairman of the Constitutional Council, to step down to facilitate the investigation.

The NPP parliamentary group consists of 159 MPs, including 18 National List (NL) members.

NL member Dr. Abeysinghe asked whether any other person, who had been investigated by the CIABOC, stepped down from his or her position to facilitate the inquiry.

The top official emphasised that the CIABOC could go ahead with its investigation without any hindrance.

Chamindra and Dr. Jagath

Opposition sources said that there hadn’t been a similar situation before and the CIABOC investigation into Speaker Dr. Wickramaratne is unprecedented as he heads the 10-member CC responsible and directly involved in all key appointments, including that of members to the CIABOC.

Sources pointed out that the newly appointed Auditor General, Ms. Samudrika Jayaratne, took the oath of secrecy before the Speaker on 5 February in Parliament after suspended Deputy General Secretary of Parliament Chaminda Kularatne complained to CIABOC.

In accordance with Section 9 of the National Audit Act, No. 19 of 2018, Jayaratne took the oath of secrecy in her capacity as the Auditor General of the National Audit Office and Chairperson of the Audit Service Commission.

Sources said that Kularatne would move the Court of Appeal today (10) against his removal at the behest of the Staff Advisory Committee, headed by the Speaker.

By Shamindra Ferdinando

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Trinco Buddha statue case: All suspects, including 4 monks re-remanded till 11 Feb.

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One of the monks being brought to the Magistrate’s Court

The Trincomalee Magistrate’s Court yesterday (09) further remanded 10 persons, including four Buddhist monks, arrested on 19 January, 2026, for allegedly placing a Buddha statue in the coastal reservation, on 16 January.

The Buddhist monks, including Ven. Balangoda Kassapa Thera, and six other individuals, were further remanded until 11 February.

They have been accused of violating the Coast Conservation Act by placing a Buddha statue on a block of land belonging to the Trincomalee Bodhiraja Temple.

Of the four monks, Ven Balangoda Kassapa Thera and Ven Trincomalee Kalyanawansa Tissa Thera moved the Court of Appeal against the Magistrate’s Court decision. The case was heard on 22 January before a Bench comprising the President of the Court of Appeal, Justice Rohantha Abeysuriya, and Justice K. Priyantha Fernando.

Manohara de Silva, PC, and President’s Counsel Uditha Igalahewa, PC, appearing for the petitioners, urged the Court to take up the matter urgently, describing it as a case of exceptional importance.

However, the Court of Appeal on 3 February dismissed the petitions against the remanding of Ven Balangoda Kassapa Thera and Ven Trincomalee Kalyanawansa Tissa Thera.

The order was issued by the Court of Appeal bench consisting of the President of the Court of Appeal, Justice Rohantha Abesuriya and Justice Priyantha Fernando.

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Pakistan HC commemorates Kashmir Solidarity Day

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Exhibition focusing on Kashmir (pic courtesy PHC)

The Pakistan High Commission in Colombo recently organised a seminar and photo exhibition at the HC premises to commemorate Kashmir Solidarity Day. The following is the text of the statement issued by the PHC: “The event highlighted Pakistan’s continued support for the Kashmiri people and emphasised the importance of a peaceful and just resolution of the Jammu and Kashmir dispute. Members of the Pakistani community, friends of Kashmir, and local journalists attended the event.

The seminar concluded with remarks by the High Commissioner of the Islamic Republic of Pakistan, Major General (R) Faheem-ul-Aziz, HI (M). He reaffirmed Pakistan’s principled stance on the Jammu & Kashmir issue and underscored the need for sustained international engagement. He noted that the situation in Indian Illegally Occupied Jammu & Kashmir (IIOJK) has remained a matter of concern for decades and called upon the international community, particularly the United Nations, to play its role in promoting peace, stability, and respect for human rights.

The High Commissioner emphasised that the Jammu and Kashmir dispute should be resolved in accordance with international law and relevant UN Security Council resolutions, cautioning that prolonged tensions could have broader implications for regional peace and security.

The event featured keynote addresses by Shiraz Yunus and Ms. Suriya Rizvi, who highlighted the importance of dialogue, interfaith harmony, and peaceful coexistence. They also drew attention to humanitarian concerns and stressed the need for safeguarding fundamental rights in the region.

Earlier, messages from the President and the Prime Minister of Pakistan, issued on the occasion of Kashmir Solidarity Day, were read out by the Press Attaché and the Trade & Investment Attaché, respectively.

As part of the Photo Exhibition, photographs and digital presentations, depicting the humanitarian situation in IIOJK, were displayed during the seminar.”

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