News
Lanka debt talks with India, China, Japan helped by investment projects: President
ECONOMYNEXT –Sri Lanka has been moving forward in bilateral debt negotiations by talking to individual creditors despite a clearly defined process for dealing with Paris Club and other creditors, President Ranil Wickremesinghe had said last week.
Sri Lanka was following a ‘debtor led’ strategy by reforming the economy and also aiming at a ‘highly efficient green economy’, which was going to increase financing needs, Wickremesinghe told a financing summit for a New Global Financing Pact in Paris.
“What else helped us was that Sri Lanka had ongoing negotiations with Japan, India and China and separately regarding further trade integration and also regarding some of the development programs for the future,” President Wickremesinghe said. “This assisted our process.”
Sri Lanka was supported by the International Monetary Fund and also India who gave about four billion US dollars in 2022 he said when all other funding dried up.
Sri Lanka’s currency crisis intensified in 2022 after central bank open market operations depleted forex reserves and float (full suspension of convertibility) of the currency failed due to a surrender rule leading to the collapse of the rupee from 200 to 360 to the US dollar.
India had supported Sri Lanka with about four billion US dollars in the worst time, Wickremesinghe said.
Sri Lanka went through a period of ‘reserve graduation’ with the World Bank and Asian Development Bank making the country eligible for concessionary funding.
After a staff level agreement was signed with the IMF there was no clearly defined path to follow in bilateral debt restructuring with some lenders outside the Paris Club, the president said. Ninety percent of the menu options in the IMF program was agreed, he added.
The lack of a clearly defined path was a problem but a ‘common framework’ for middle income countries may also not help, because such efforts tended to move at the pace of the slowest creditor, he said.Under an ‘ad hoc’ arrangement, India and several countries had come to work with the Paris Club and China was an observer.
“We are able to work with the most committed creditors, raising the general quality and efficiency of the process,” Wickremsinghe said. “We are still frustrated by the lack of progress.”
Wickremesinghe said a new debt negotiation framework was needed since geopolitical tensions played a part, which cannot be solved by the debtor countries.
“The mistrust between US and China and the growing tensions has to be address by you all, not merely Sri Lanka and the country concerned,” Wickremsinghe said. “If you do not resolve it, Asia and Africa we will get caught into another situation not of our making. Restructuring is needed. But it has to move fast, otherwise LIC or MIC, the countries will not have much hope.”
A number of countries with highly unstable, depreciating, soft-pegged (flexible exchange rates) who had engaged in inflationary open market operations and covid monetary re-financed funding, are now in the brink of default.
Many of the countries had loaded up of sovereign debt as bond buyers went on a yield seeking spree as reserve currency quantitative easing (money printing) kept interest rates artificially low and China also busted some of its reserves on the Belt and Road project.
News
Easter Sunday attacks: Govt. says wife of Katuwapitiya Church bomber alive
Minister of Public Security Ananda Wijepala told Parliament yesterday that information uncovered during ongoing investigations indicated that Pulasthini Mahendran, also known as Sara Jasmine, linked to the 2019 Easter Sunday terror attacks, was not dead.
Responding to a question raised by Opposition MP Mujibur Rahuman, the Minister said there was no confirmation that Sara Jasmine was currently in India, despite speculation to that effect. He added that investigators suspected she may have fled the country and stressed that further inquiries were underway to establish her whereabouts.
“If necessary, the government will take steps to obtain a warrant,” Wijepala said, noting that legal action related to the Easter attacks had already been initiated, based on available evidence.
Minister Wijepala said the new government had launched an thorough probe to determine whether a political or other conspiracy had been behind the attacks that killed more than 270 people in 2019. However, he declined to disclose certain details in Parliament, citing the risk of hampering investigations.
Sara Jasmine, Mohammed Hashtun, who bombed St. Sebastian’s Church, in Katuwapitiya, in 2019, was long presumed to have died in a suicide blast in Sainthamaruthu, days after the attacks. Wijepala said attempts by previous administrations to establish her death had failed, with recent reports indicating that DNA tests conducted at the time were inconclusive.
During the debate, MP Rahuman recalled that senior figures, including then-Opposition MP Nalinda Jayatissa, had previously claimed Sara Jasmine was in India. He questioned why authorities had not sought an open warrant for her arrest whether the issue had been raised in talks with Indian officials.
Wijepala, responding on behalf of Deputy Minister of Defence Arun Jayasekara, said the government would not hesitate to pursue legal action, including warrants, if necessary.
By Saman Indrajith
News
Indian Army Chief here
The Chief of the Indian Army Staff (COAS), General Upendra Dwivedi arrived in Sri Lanka yesterday (07). On arrival, the COAS was accorded a Guard of Honour by the Sri Lanka Army.
The Indian HC said that: “He will engage with senior military and civil leadership, including the Commander of the Sri Lanka Army, Deputy Minister of Defence and the Defence Secretary; and hold detailed discussions on matters of mutual interest, including training cooperation, capacity building and regional security.
During the visit, the COAS will address officers at the Defence Services Command and Staff College (DSCSC) and interact with officers and trainees at the Army War College, Buttala, reflecting India’s strong commitment to defence education and professional military exchanges with Sri Lanka.
General Dwivedi will also pay homage at the IPKF War Memorial, honouring the supreme sacrifice of Indian soldiers.”
General Dwivedi arrived here from the United Arab Emirates (UAE) where he attended several events during 05 to 06 January.
News
Kelaniya Duruthu Perahera
The Annual Kelaniya Duruthu Perahera at the Kelaniya Raja Maha Viharaya will be held on 08, 09 and 10 January, 2026. The historical Kelaniya Duruthu Maha Perahera was first held in 1927 due largely to the efforts of philanthropist Don Walter Wijewardene, son of Helena Wijewardene Lamathani of Sedawatte.
This Perahera has evolved over the years to become the country’s most elaborate and grandest low country pageant in its category. Kelaniya Raja Maha Viharaya is the most sacred temple in the Western Province of Sri Lanka since the Buddha’s visit here during his P historic visit to Sri Lanka.
It celebrates this event annually in the “Duruthu Poya” during January by conducting a historic, traditional and cultural pageant, the “Kelani Perahera”. While the Kelani Perahera commemorates the religious significance of Lord Buddha’s visit.
The Perahera is organised under the guidance of Chief Priest of Kelaniya Raja Maha Viharaya, Venerable Professor Mahinda Sangarakkitta Nayaka Thera, and President of Dayaka Sabha, Dr. Saman Weerasinghe.
The Perahera will commence with the Chancellor of the Kelaniya University Agra Maha Panditha Ven Professor Kollupitiya Mahinda Sangharakkita Nayake Thera handing over the Sacred Relic Casket to Chief Basnayake Nilame Dhammika Attygalle. The sacred relic Perahera will be followed by three Devale Perahera’s of God Vibishana, God Kataragama and God Vishnu.
On 08th January, 2026, will be the Udamaluwe Perahera, 09th January will be the Sacred City Perahera, and 10th January will be the Grand Duruthu Maha Perahera. The Perahera will commence at 8.00 pm.
There will be a special enclosure for foreign tourists to view the Perahera.
-
News2 days agoBroad support emerges for Faiszer’s sweeping proposals on long- delayed divorce and personal law reforms
-
News2 days agoInterception of SL fishing craft by Seychelles: Trawler owners demand international investigation
-
News3 days agoPrivate airline crew member nabbed with contraband gold
-
News1 day agoPrez seeks Harsha’s help to address CC’s concerns over appointment of AG
-
News1 day agoGovt. exploring possibility of converting EPF benefits into private sector pensions
-
News5 days agoHealth Minister sends letter of demand for one billion rupees in damages
-
Features2 days agoEducational reforms under the NPP government
-
Features3 days agoPharmaceuticals, deaths, and work ethics
