News
“No fixed timeline” to disburse 2nd tranche of $3 bln loan, IMF official says
By SHIHAR ANEEZ
ECONOMYNEXT –Sri Lanka’s second tranche of a $3 billion loan from the International Monetary Fund is likely to be delayed as the country has failed to meet the program objective and a global lender’s official said there is no fixed timeline on the disbursement of second tranche.
Sri Lanka’s government revenue is likely to face a 15 percent fall from the target agreed with the IMF, the global lender said, due to poor tax administration and lower collection.
An IMF delegation was in Colombo over two weeks for the first review of the loan before the global lender’s Executive Board approval for the second tranche.
“There is no fixed timeline,” Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF’s Asia and Pacific Department, told reporters at a media briefing on Wednesday after concluding the first review of the loan.
“We are confident that it (the GOSL) will be able to do so with a little bit more time,” he said referring to Sri Lanka’s effort to raise revenue.
The IMF in March this year approved a 48-month, $3 billion extended arrangement under the Extended Fund Facility (EFF) to support Sri Lanka’s economic policies and reforms with the main emphasis on increasing the government revenue, boosting the international reserves, and reducing inflation.
Soon after the approval, Sri Lanka which is going through an unprecedented economic crisis received the first tranche of $330 million. The first review was to assess the country’s performance against the IMF programme objective. Breuer said Sri Lanka is yet to satisfy two key objectives.
“We need two important things to be satisfied. We need to reach agreement on set targets, policies, and reforms that will allow us to go forward… with the understanding that the objective of the programme can be reached,” Breuer said.
“So, now we have discovered there was a little bit of shortfall on one area during this year. So, we are looking to try and find ways to address that shortfall and compensate.
He said working in a direction of having agreement on these policies is an “important prerequisite.”
“Then the other one is in the area of debt,” Breuer said adding that reaching agreement with creditors will help store debt sustainability in Sri Lanka.
“When these two conditions are met, we can go forward. Of course, there is a little bit of administrative process also. It will take some time to write the reports that actually assesses the performance of the first review before steps to be considered by our executive board which will make the final decision on this.
Latest News
Sun directly overhead Madampe, Thorayaya, Thotagamuwa, Rattota and Kalavanchikudy about 12.09 noon today (03)
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 (03) are Madampe, Thorayaya, Thotagamuwa, Rattota and
Kalavanchikudy about 12.09 noon.
News
22A: SC urged to suspend hearing, appoint full bench
Attorney-at-Law Sugandhika Fernando, on behalf of the Vinivida Foundation, petitioned the Supreme Court yesterday (02), seeking a full bench, excluding Chief Justice Preethi Padman Surasena, to hear the petitions challenging the 22nd Amendment Bill. She also requested that the hearing be suspended immediately until the matter was fully heard and determined.
Among the respondents are Chief Justice Surasena, the first respondent, and Attorney General Parinda Ranasinghe. Justices Yasantha Kodagoda, Shiran Gooneratne, Achala Wengappuli and Priyantha Fernando have also been named as respondents.
The petitioner has sought to have quashed the decision of the first respondent to appoint a five-member bench, which she alleged was made in violation of the norms of public law. She also sought a bench comprising all Supreme Court judges, excluding those cited as respondents, to hear the special determination applications on the 22nd Amendment.
The petitioner further contended that Chief Justice Surasena, who is due to retire on December 1, 2026, would be the main beneficiary of the 22nd Amendment.
The hearing of the petitions continued for a second day yesterday (02) before a five-member Supreme Court bench comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli, Arjuna Obeyesekere, Sampath Abeykoon and Gihan Kulatunga.
The hearing, which commenced on Tuesday morning, continued for nearly 12 hours, until 10:30 p.m.
Solicitor General Viraj Dayaratne, appearing for the Attorney General, submitted yesterday that the Government had presented the 22nd Amendment Bill to the Constitution and the Judicature (Amendment) Bill with the objective of expanding and streamlining the country’s judicial system.
After the Solicitor General’s submissions concluded, counsel representing the petitioners requested an opportunity to respond to the Solicitor General and the intervening petitioners. However, the Chief Justice declined to allow the petitioners’ counsel to make further oral submissions, concluded the determination hearing and directed them to file written submissions instead.
News
Govt. seeks NATO assistance
Sri Lanka has formally requested assistance from the North Atlantic Treaty Organisation (NATO).
According to a press release issued by the Defence Ministry, Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha has discussed defence cooperation with NATO, with discussions focusing on military modernisation, advanced technology, cyber capabilities and disaster response.
This was during talks between AVM Thuyakontha and NATO Military Committee Chairman Admiral Giuseppe Cavo Dragone on the sidelines of the Chiefs of Defence Conference in Victoria, Canada.
During the meeting, Secretary Thuyacontha outlined Sri Lanka’s defence requirements and areas of interest, including the modernisation of military hardware, acquisition of advanced technologies, and strengthening cyber capabilities and surveillance platforms, the Ministry of Defence said in a statement.
The two sides also discussed opportunities for greater technical cooperation, including the exchange of military personnel, expanded education and training programmes, and increased sharing of expertise and information.
Humanitarian Assistance and Disaster Relief (HADR) was also identified as an area for potential cooperation. The discussions included the exchange of expertise and the effective use of unmanned aerial vehicles (UAVs) in disaster response and related operations.
Defence Secretary Thuyacontha invited NATO to further strengthen its engagement with Sri Lanka, emphasising sustained dialogue, information sharing and practical cooperation in areas of mutual interest.
-
News7 days agoEight politicians in drug kingpin probe
-
Features5 days ago“Wrap Me Up in My Blazer”— A Gentlemanly Bradby Reminiscence
-
Business7 days agoSri Lanka opens up: A new season of direct connectivity
-
Features4 days agoWhen Sri Lankan stories find their own voice
-
Features7 days agoRedefining ageing in Sri Lanka
-
Editorial7 days agoThe toxic legacy of two lakes
-
Business7 days agoJaffna Teaching Hospital secures lifeline water supply via ADB-funded Thalaiyadi sea water desalination plant
-
Features5 days agoJVP/NPP government as seen from outside by Lionel Bopage now domiciled in Australia
