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Lanka crisis would deepen if creditors disagree, IMF says amid China concerns
ECONOMYNEXT –Sri Lanka’s ongoing economic crisis would deepen if one creditor disagrees, a senior International Monetary Fund (IMF) official said amid concerns that China would not go along with Western creditors on debt restructuring on an equal footing.
All Sri Lankan creditors including China have to agree to restructure their existing loans to the island nation before the IMF starts disbursing a 2.9 billion US dollar loan on which preliminary agreement was announced on Thursday.
“If one creditor or creditors are not willing to provide these assurances, that would indeed deepen the crisis here in Sri Lanka and would undermine the repayment capacity,” Peter Breuer, senior IMF mission chief told reporters in Colombo when asked what if China does not agree on a debt restructuring plan.
“So a deepening crisis means that essentially the resources available to service the debt would become less,” he said at the media briefing after concluding a nine-day visit to finalize the staff-level agreement and a loan package for Sri Lanka’s reforms.
“So it is actually in the interest of all creditors to collaborate together and with Sri Lanka so that Sri Lanka can emerge from this crisis as quickly as possible and regain its repayment capacity and service this new debt that will come out of these debt negotiations.”
China has so far not agreed for debt restructuring which could include haircut or reductions in interest rates. Instead, China has expressed its willingness to refinance Sri Lanka to repay its past loans without any changes, Lankan officials say.Sri Lanka has already hired financial and legal advisory firms Lazard and Clifford Chance LLP to support its debt restructuring as the country is on the brink of bankruptcy. Lazard has been the legal adviser in Zambia’s debt restructuring where creditors included China.
The Paris Club of Western nations which has a well defined unified process for dealing with defaulted nations, which is familiar to the IMF.
“Sri Lanka is in a special situation that much of its official debt is outside of Paris Club creditors,” Breuer said.
“It is important to move expeditiously. We want to avoid the crisis from becoming worse.”
News
Sun directly overhead Galle, Angulugaha, Imaduwa, Telijjawila, Yatiyana and Tangalle about 12.08 noon today (07)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (07) are Galle, Angulugaha, Imaduwa, Telijjawila, Yatiyana and Tangalle about 12.08 noon.
By Norman Palihawadane
The CID recently found that former SLPP Deputy Minister Premalal Jayasekara, better known as ‘Choka Malli’, had left for Thailand when the Supreme Court imposed an overseas travel ban on him last Friday.
The CID discovered that Jayasekara had left Sri Lanka on August 31, while authorities were taking steps to enforce the travel restriction imposed by the Supreme Court. The Department has subsequently informed the Attorney General’s Department of the development.
The Supreme Court last Friday ordered Jayasekara, and two other men, to appear before court on October 21, and imposed a ban on their overseas travel.
The orders were made as the Supreme Court considered an appeal challenging the acquittal of the three men in connection with the 2015 murder of Shantha Dodangoda, also known as D.G. Sunil Perera.
The appeal was filed by Dodangoda’s wife against a decision of the Court of Appeal to acquit and release Jayasekara and the two other accused, who had previously been convicted and sentenced to death by the Ratnapura High Court.
Dodangoda was killed in a shooting in Kahawatta town, in the early hours of January 5, 2015, while a group of people were putting up decorations for an election rally in support of then common Opposition presidential candidate Maithripala Sirisena.
Two others, Karunadasa Weerasinghe and Mohamed Ilfan, were seriously injured in the shooting.
Following the incident, the Ratnapura High Court convicted Jayasekara, former Chairman of the Kahawatta Pradeshiya Sabha Wajira Darshana de Silva, and former Sabaragamuwa Provincial Council member Nilanta Jayakody, sentencing all three to death.
The Court of Appeal subsequently acquitted the three men and ordered their release.
The victim’s wife later challenged the acquittal before the Supreme Court.
The appeal was taken up before a Supreme Court bench, comprising Justice Preethi Padman Surasena and Justices Achala Wengappuli and Gihan Kulatunga.
During the proceedings, Deputy Solicitor General Janaka Bandara requested that the court impose overseas travel restrictions on Jayasekara and the other respondents.
The Supreme Court subsequently ordered all three to appear before the court on October 21 and imposed travel bans on them.
President’s Counsel Nalin Ladduwahetty, President’s Counsel U.R. de Silva and President’s Counsel Anuja Premaratne appeared for the respondents. President’s Counsel Saliya Peiris represented the aggrieved party.
Police sources said that the discovery that Jayasekara had already left for Thailand, on August 31, has raised concerns over the timing and enforcement of the travel ban.
Sources said that the CID had notified the Attorney General’s Department and was taking further action in relation to the development.
By Pradeep Prasanna Samarakoon
The number of deaths from dengue fever in Sri Lanka has risen to 73 this year, with 96,228 cases reported across the country so far, according to the Dengue Control Unit.
The latest figures indicate that dengue continues to pose a significant public health concern, with 737 new cases recorded during the first four days of September alone.
Dengue infections peaked in July, when 29,964 cases were reported, according to the latest data. June recorded the second-highest monthly total, with 21,533 cases, while 10,155 cases were reported in August.
Earlier in the year, 8,590 cases were recorded in May and 7,866 cases in January.The Western Province remains the worst-affected area, accounting for more than half of all dengue cases reported nationwide. A total of 50,851 cases have been recorded in the province, representing 52.84% of the country’s total.
The Southern Province has recorded 13,950 cases, followed by the Central Province with 8,818 cases and Sabaragamuwa Province with 7,925 cases.
Sun directly overhead Galle, Angulugaha, Imaduwa, Telijjawila, Yatiyana and Tangalle about 12.08 noon today (07)
Showers above 50 mm are likely at some places in the Uva and Eastern provinces.
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