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Lanka gets restructuring proposal from bond holders

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ECONOMYNEXT –Sri Lanka has received a proposal from private bondholders and is assessing it, a senior government source said as efforts are underway to also restructure official debt.

Bondholders have proposed ‘macro linked bonds’ where the coupon will adjust downwards if Sri Lanka’s growth is lower than forecasted, as well as regular bonds, Reuters, a news agency reported.The proposal includes hair-cuts and coupon reductions, the report said.

Unlike bilateral creditors who do not usually take hair-cut from middle income countries but give grace periods and extend maturities along with coupon cuts, private creditors usually write down the principle in return for faster payback.

Some of Sri Lanka’s bond holders consider the International Monetary Fund’s growth projections for the medium term at 3.1 percent to be pessimistic.Sri Lanka itself has forecasted 5.0 percent GDP growth for 2027 compared to 3.1 percent in an IMF debt sustainability assessment.A lower growth number squeezes the gross financing need, defined as a share of the GDP between 2027-2032, forcing bondholders to take steeper haircut than if the

Defining the GDP in dollar terms to link the bond was also considered, according to a source with knowledge of the matter.It was up to Sri Lanka authorities and bondholders “to find some kind of instrument that works for both parties,” IMF mission Chief Peter Breuer said in March responding to whether the IMF would endorse such securities.If issued such bonds would be a first to private bondholders in a sovereign restructure.

Previous so-called state contingent bonds involved value recovery instruments which traded separately and were not included in bond indices and were bought by hedge funds.

A bond with a coupon which is adjusted based on GDP however would be index eligible and could be held by ‘real money’ funds who own a bulk of Sri Lanka bonds.

Sri Lanka has issued 12.55 billion US dollars of sovereign bonds of which one bond is under litigation.China has agreed to restructure 4.2 billion US dollars of its debt but details have to be worked out, Sri Lanka’s finance ministry said this week.



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National Namal Uyana Declared a ‘National Heritage of Sri Lanka’

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The declaration of the National Namal Uyana as a “National Heritage of Sri Lanka” with the aim of identifying, conserving and bequeathing the country’s national heritage to future generations under the Ministry of Buddhasasana, Religious and Cultural Affairs and the commemoration of the 35th anniversary of its establishment was held under the patronage of President Anura Kumara Dissanayake at the Presidential Secretariat, on Thursday (26).

The National Namal Uyana, spanning 602 hectares within the Palagala Divisional Secretariat Division of the Anuradhapura District, is a unique site of significant national, religious, environmental and geographical value. At the request of its founder, Venerable Wanawasi Rahula Thero and with the intervention of the Ministry of Buddhasasana, Religious and Cultural Affairs, the site was formally declared a National Heritage of Sri Lanka. To mark this occasion, the commemorative plaque was unveiled by the President via virtual technology.

Speaking on the occasion, President Anura Kumara Dissanayake stated that the responsibility of safeguarding this unique environmental heritage and bequeathing it to future generations rests with all.

The President also expressed his sincere appreciation for the dedication shown by Venerable Wanawasi Rahula Thero over the years in protecting and developing the National Namal Uyana.

On the occasion of the 35th anniversary of the National Namal Uyana, the first-day cover issued by the Postal Department of Sri Lanka, along with the ‘National Namal Uyana Shashthreeya Sangrahaya’, was presented to the President by Venerable Wanawasi Rahula Thero.

Delivering a special address on the occasion, Venerable Wanawasi Rahula Thero, founder of the National Namal Uyana, stated that this event would go down in history as one of the most outstanding environmental services undertaken by the present Government.

The thero also expressed his deep appreciation for the President’s decision to hold the programme at the Presidential Secretariat, rather than at the National Namal Uyana premises as originally planned for tomorrow (27), in view of the prevailing situation in the country.

He further highlighted that the people of the country has been widely embraced President Anura Kumara Dissanayake’s vision and commitment for national development and emphasised the need for unity among all citizens in addressing the challenges currently facing the country and for collectively seeking effective solutions.

On this occasion, Venerable Wanawasi Rahula Thero, founder of the National Namal Uyana, also shared further remarks.

On 28 March 1991, I began my work at the National Namal Uyana, a beautiful forested area, dedicating myself with great commitment despite facing a very difficult life. During this time, local monks and members of the public levelled various accusations against me and subjected me to public criticism. Numerous articles were written against me in the press. Yet, I did not waver in my efforts.

However, during the tenure of President Chandrika Kumaratunga, I was fortunate to receive the assistance of Berty Premalal Dissanayake, through whose efforts electricity was  made available. Subsequently, I have also received support from all Presidents who have held office after President Kumaratunga. I have not made any personal requests, yet opportunities have consistently been accessible to me, owing to my unwavering commitment to act with integrity.

During your tenure, the roads in the area surrounding the National Namal Uyana have been well developed and I extend my appreciation to all involved in this achievement. I also express my sincere gratitude to Minister Dr. Nalinda Jayathissa and Deputy Minister Gamagedara Dissanayake, who worked with dedication to ensure that the National Namal Uyana was formally declared a National Heritage of Sri Lanka. Similarly, I acknowledge the efforts of officials, including Roshan Gamage, who managed these activities efficiently. I also deeply appreciate the extensive support provided by both electronic and print media in promoting this initiative.

The National Namal Uyana is not my personal property; I have only acted as its guardian. For this reason, I planned for it to be entrusted to the Central Cultural Fund after my tenure and I am confident that this process is being managed effectively. I also envisaged connecting this site with Gangarama and having officials at the level of the Secretary to the President, the Secretary to the Ministry of Wildlife Conservation and the Secretary to the Ministry of Buddhasasana oversee its continued development. Without such measures, the site could have been at risk of deterioration during my absence.

I have done my part for this country. I owe nothing to the nation. My foremost responsibility is to ensure the protection and preservation of this site. As someone born in the nearby village of Anuradhapura District, I am deeply honoured and delighted that, today, this has been officially declared a National Heritage under your auspices.

Additionally, there are two schools and two hospitals in the Palagala Divisional Secretariat Division. On behalf of the local communities, I respectfully request that one of these schools and one of these hospitals be upgraded into fully equipped facilities to better serve the people.

This occasion was attended by a distinguished group of officials, including Minister of Health and Mass Media, Dr Nalinda Jayathissa, Deputy Minister of Buddhasasana, Religious and Cultural Affairs, Gamagedara Dissanayake, Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Buddhasasana, Religious and Cultural Affairs, Prince Senadheera, Secretary to the Ministry of Environment, K.R. Uduwawala, Senior Additional Secretary to the President, Roshan Gamage, Director General of Archaeology, E.A. Senerath Wikramasinghe, Director General of the Central Cultural Fund, Dr. Nilan Cooray and Postmaster General S.R.W.M.R.P. Sathkumara among others

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War-linked power crunch pushes Lanka to four-day week

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(AFP ) Millions of Sri Lankans enjoyed a government-ordered extra day off on Wednesday as the island nation battles an energy crisis triggered by the Middle East war.

Rail and bus stations were largely deserted as most state institutions, schools and universities shifted to a four-day working week.

“I am really enjoying the mid-week break because it is a fully paid holiday,” said housing ministry official Prarthana Perera, 40.

Her office, like many government departments in Battaramulla — the capital’s main administrative hub — was closed.

Banks operated on shorter hours, while many private firms introduced work-from-home arrangements, industry bodies said, urging members to help curb energy use.

Sri Lanka has already raised fuel prices by a third since the United States and Israel began bombing Iran, triggering retaliatory attacks that have disrupted global energy supplies.

About half of Sri Lanka’s electricity is generated by coal and diesel.

The cabinet has set a target of cutting electricity consumption by 25 percent, ordering street lamps switched off and asking civil servants to use table fans instead of power-hungry air conditioners.

Shipping executive Varuna Perera welcomed the day off but was uncertain of its impact.

“It will not be effective in the long term,” Perera said. “But the government will have a breather for a couple of weeks, to save some energy.”

Environmental lawyer Ravindranath Dabare was more sceptical, arguing the move would have limited impact as those needing government services would have to travel on other days.

“We can’t close hospitals… the doctors and health officials can’t work from home,” Dabare said.

The influential Chamber of Commerce said it had urged members to follow government guidelines or adopt remote work where possible, if

“business continuity can be effectively maintained”.

And Sri Lanka’s leading technology firm WSO2 made working from home mandatory for its 500 employees on Tuesdays and Thursdays.

“This is our way of contributing to the national cause,” WSO2 spokeswoman Zaithoon Bin-Ahamed told AFP.

Media Minister Nalinda Jayatissa said the government had yet to assess the impact of the energy-saving measures, but expected broad compliance.

Sri Lanka has been running coal and diesel power plants at full capacity to meet electricity demand.

President Anura Kumara Dissanayake urged electric vehicle owners not to charge their cars overnight, as they would add a surge to an already strained grid.

He asked motorists instead to plug in during the day, when excess solar power is available.

Officials said the country’s diesel stocks are sufficient to last until mid-May, while petrol could last a week longer.

The government is seeking oil supplies from Russia and hopes to tap Iran for crude oil, Jayatissa said.

Political commentator Kusal Perera said the crisis also presented scope to boost productivity across the state sector.

“They must use this opportunity to have a national dialogue on improving productivity,” he told AFP. “We have to address the inefficiency in the public sector.”

By Amal JAYASINGHE

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Lanka to swelter through April and May, Met Dept warns

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Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology has warned.

Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.

Wijemanna explained that the island is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.

He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.

Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.

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