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Lanka ISB restructure talks await clarity on IMF methodology: Sources

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ECONOMYNEXT –Sri Lanka’s debt restructuring talks with sovereign bond holders are awaiting clarity on how the International Monetary Fund assesses securities linked to economic performance under its debt sustainability analysis, sources with knowledge of the talks said.

The IMF had decided that a March proposal made by private investors with macro-linked bonds was not in line with its debt sustainable framework, according to a Sri Lanka government statement issued after the first round of direct talks with bondholders.

A new proposal made in April, is also awaiting IMF assessment on whether it complies with a DSA framework.

The macro-linked bond would have a higher hair-cut initially, which would reduce if the economy performed better than the IMF expected.

IMF has different frameworks on which debt sustainability is assessed for low income countries and higher income market access countries.

There is no prior experience on how a revised DSA methodology for Middle Income Countries is applied to macro-linked bonds of the sort proposed by Sri Lanka’s private investors. As a result, efforts are underway to better understand how the framework is applied, sources said.

Representatives of the parties also engaged later in April after the first round of talks, which was encouraging, sources said.

The IMF usually does not get involved with formal talks with the bondholders and deals directly with the government, also putting them at disadvantage.

If there was more clarity on how the DSA framework is applied to the macro-linked bonds proposals that comply with the framework, revised proposals could be exchanged at negotiations aimed at reaching a faster conclusion, according to sources familiar with the discussions.

Bond holders have also proposed a governance linked bond, after getting the go ahead from Sri Lanka, which has also been also welcomed by Sri Lanka’s opposition.

It is also a new proposal, though so-called ESG bonds have been issue based on other performance indicators.

At the London talks, advisors as well as key bondholders participated, under non-disclosure agreements. During the talks they cannot trade or change their positions.More clarity on how the debt sustainability analysis is applied to the macro-linked bonds would help speed up negotiations, sources said.



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LG polls free and fair;Voter turnout low: Election monitors

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The countrywide Local Government (LG) election concluded at 4 pm yesterday (06) without serious incidents.

Voting began at 7 am at 13,759 polling centres. Over 17.1 mn people were eligible to vote at the third election since the presidential poll held last September

At the closing of voting, PAFFREL said that during the day they received 78 confirmed cases of polls-related offences including 38 cases of carrying out illegal propaganda and 25 complaints regarding influencing voters.

There had been altogether 38 unconfirmed cases, mostly of carrying out illegal propaganda and influencing voters, PAFFREL said.

The previous LG poll was held in February 2018 during the Yahapalana administration.

Voter turnout passed 50% in most districts with Kalutara recording – 61%, Colombo – 52%, Galle – 63%, Vavuniya – 60%, Digamadulla – 63%, Trincomalee – 67%, Nuwara-Eliya – 60%, Mullaitivu – 60%, Mannar – 70%, Badulla – 60%, Anuradhapura – 60%, Polonnaruwa – 64%, Moneragala – 61%, Kegalle – 58%, Matara – 58%, Matale- 62%, Rathnapura – 60%, Batticaloa – 61%, Kilinochchi – 60%, Puttalam – 55%

Having exercised her franchise at the polling booth at Samurdhi Building, Mirihana, Premier Dr. Harini Amarasuriya responded to allegations that at the final meeting at Moratuwa she influenced NPP supporters to campaign during the 72 hour ‘silence period.’

Premier Amarasuriya said that if her comments were deemed to have violated election laws she would accept any action taken by the Election

Commission. The law must be applied equally – whether to a citizen or the Prime Minister,” Dr. Amarasuriya said.

At the onset of the campaign President Anura Kumara Dissanayake caused controversy when he declared that government funds would be made available only to local authorities won by the NPP. Commissioner General of Elections Saman Sri Rathnayake is on record as having said that the Election Commission wrote to President Dissanayake regarding his statement.

Polls monitors said that the LG election, like the presidential and parliamentary polls, was peaceful. Political parties and polls monitors said that contrary to earlier assertions, the mini polls attracted a significant number of voters. The northern vote is comparatively higher than the rest of the country, they said.

The ruling NPP, the main Opposition SJB, the SLPP and UNP were the main contestants.

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Local government polls 2025

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Having voted at Abeysinharamaya, Panchikawatte, President Anura Kumara Dissanayake declared that the NPP would comfortably win Tuesday’s local government polls. The President voted soon after returning from a two-day state visit to Vietnam. (Pic by Nishan S. Priyantha)

Premier Dr. Harini Aparasuriya, who is under fire for urging NPP supporters to campaign during the official moratorium on campaigning in the run-up to May 09 Local Government polls is leaving ‘Sanasa’ polling booth in Mirihana yesterday after casting her vote.

(Pic by Thushara Atapattu)

Former President and UNP leader Ranil Wickremesinghe casting his ballot at the College House polling booth in Cinnamon Gardens.

(Pic by Nishan S. Priyantha)

Women and Child Affairs MInister Saroja Savithri Paulraj arrives at Aththudava Maha Vidyalaya, Matara to cast her vote.

(Pic by Priyan de Silva)

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Saudi Ambassador urges graduates not to think graduation as the end of academic chapter, but beginning of lifelong journey of growth and innovation

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Saudi Ambassador Khalid Al Khatami (left) and Acting Register M. I. Nawfer (C) with Acting Vice Chancellor Dr. U. L. A. Majeed

Saudi Arabian Ambassador Khalid bin Hamoud Al Kahtani said that graduation is not just the conclusion of academic chapter but the beginning of great responsibility and a new sense of hope and a life long journey of growth and innovation.

Delivering convocation address at South Eastern University recently, he said:Today is a special day in our life when we come together to celebrate years of hard work, dedication and learning as well as to acknowledge and appreciate the successful students and wish them a future filled with success and joy. Graduation is not just conclusion of our academic chapter but the beginning of great responsibility and a new sense of hope and a life long journey of growth and innovation.

This shining moment is the resolve to feel the hard work, the support of family and the commitment of lecturers. Saudi Arabia’s national road map for future place a strong emphasis on education and development of human capital. We strongly believe that most valuable investment is in minds and human capitalism for the foundation of a new successful, sustainable future. Today you are honoured with the crown of knowledge, so rise to meet the responsibility it preaches, uphold the value of integrity, loyalty and responsibility. You are an ambassador of knowledge – great in your field, and a source of pride to your family and community. The road is on your way of innovation and your country looks forward to your contribution.

I would like to take this opportunity to extend my heartfelt thanks and appreciation to the administration of South Eastern University, its team and lecturers for their academic guidance and moral support to their students as well as for their outstanding role in advancing education. I would also like to express my heartfelt congratulations to the parents here to have supported their children towards this remarkable achievement. They are true parents! We look forward to greater educational cooperation between Saudi Arabia and Sri Lanka in the future.”

dereliction of duty on the part of the relevant institution, and these authorities must be held accountable for the same.

The BASL is deeply concerned on the inadequate implementation of the provisions of the `Prohibition of Ragging and Other Forms of Violence in Educational Institutions Act No. 20 of 1998’, by Law Enforcement Authorities, against perpetrators of ragging and violence in these Institutions. The BASL is also mindful of the applicability of the provisions of the ‘Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment Act No. 22 of 1994’ and the relevant provisions of the Penal Code.

The BASL urges all responsible authorities in Universities and other High Educational Institutions to take necessary preemptive action and incorporate a zero-tolerance policy on unlawful ragging.

The BASL will closely monitor the case filed by the Samanalawewa Police in the Magistrate’s Court of Balangoda and urges the authorities to take all necessary legal measures to ensure the rule of law and the due enforcement of the law. The BASL is also considering seeking intervention of the Courts of Law to ensure better implementation and enforcement of the applicable Law.”

Meanwhile Sabaragamuwa VC M. Sunil Shantha has appointed a committee consisting of Senior Prof. A.A.Y. Amarasinghe (Chairman) Prof. Kapila Rathnayaka and Attorney-at-Law Y.S. Chandrasekara to investigate the incident.

From M.A. Kaleel, Kalmunai Corr.

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