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Pakistan’s rupee plunges as IMF says mission to visit next week

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Pakistan is seeking $1.1bn from the fund, part of its $6bn bailout package, to avoid default.The Pakistani rupee has dived to a historic low against the United States dollar after an exchange cap was lifted as the cash-strapped country seeks to unlock a vital bailout from the IMF.

The Washington-based lender has yet to approve the release of the crucial instalment of $1.1bn, originally due to be disbursed in November last year as part of a $6bn bailout secured in 2019.Talks with the IMF about reviving the bailout stalled in recent months, with the institution demanding more progress on fiscal consolidation and economic reforms.

The rupee closed at 230 to the US dollar on Wednesday. It slipped further, trading at 255 for $1 within hours of the market reopening on Thursday. Hours later, Pakistan’s Central Bank confirmed the currency had plummeted by 9.6 percent against the US dollar after the removal of price caps imposed by the government but which the IMF opposed.

Financial expert Malik Bostan told The Associated Press news agency the value of the rupee dropped mainly due to the delay in the revival of the IMF’s bailout talks, amid depleting foreign exchange reserves, but expected it to stabilise as the negotiations pick up again.On Thursday, the IMF’s resident representative said an IMF vision will visit Pakistan later this month to discuss the stalled ninth review of the country’s current funding programme.

“At the request of the authorities, an in-person Fund mission is scheduled to visit Islamabad January 31st – February 9th” to continue discussions,” Esther Perez Ruiz was quoted as saying by the Reuters news agency.

A successful visit is critical for Pakistan, which is facing an increasingly acute balance of payments crisis and is desperate to secure external financing, with less than three weeks’ worth of import cover in its foreign exchange reserves.

Multilateral and bilateral financing pledges for Pakistan’s effort to rebuild after devastating floods last year are also tied to the country getting the green light from the IMF.

This week, Prime Minister Shahbaz Sharif said his government was ready to adhere to the fund’s “tough conditions” to revive the $6bn bailout package, which was increased by another billion in 2020.

Sharif has been struggling to put the economy on track since taking office last year, blaming former Prime Minister Imran Khan and his government for the economic malaise. Khan was removed from office in April 2022 through a parliamentary vote of confidence, and has since been campaigning for early elections.

Thousands of shipping containers packed with raw materials for industry, foodstuffs, and medical equipment are being held up at Karachi port because banks have refused to guarantee importers’ dollar transactions.



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Massive Sangha confab to address alleged injustices against monks

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A major Sangha conference will be held on February 20 at 2 PM at the All Ceylon Buddhist Congress (ACBC) Headquarters in Colombo, bringing together both monastic and lay communities to discuss concerns over alleged injustices against Buddhist monks, the Buddha Sasana, and the nation.

Speaking at a press conference in Colombo on Thursday (12), Roshan Maddumage, Deputy Chairman of the ACBC, said the primary aim of the conference is to highlight misconduct and draw government attention to these matters.

ACBC Chairman Chandra Nimal Wakishta emphasized that the country’s legal system appears to operate inconsistently. He noted that while police officers involved in the assault of a Catholic priest were prosecuted and jailed, no investigation has been conducted into police officers accused of assaulting Buddhist monks in Trincomalee.

Wakishta stressed that the Sinhala Buddhist community has historically not engaged in violence or promoted hatred. He added that the Maha Sangha play a central role in guiding and protecting the country and the state, and that harassment or attacks on monks indirectly harm the nation as a whole.

He explained that the decision to convene the Sangha conference stems from the urgency of addressing these serious concerns, with the event expected to serve as a platform for dialogue between the clergy, lay followers, and government representatives.

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Death of Prof. Tissa Vitarana, funeral Monday

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Tissa Vitarana

Veteran leftist politician and former Minister Professor Tissa Vitarana (92) passed away on Friday morning at his home in Kotte following a prolonged illness, bis family confirmed.Vitarana enjoyed a long and distinguished public career spanning several decades, serving as the Director of the MRI, a Member of Parliament, Cabinet Minister and Provincial Governor. The nephew (sister’s son) of Dr. NM Perera, he was the leader of the Lanka Sama Samaja Party (LSSP), one of the country’s oldest political parties.

He worked hard to keep Dr. Perera’s memory alive with annual orations as well as other left oriented activities at the NM Perera Center located in Dr. Perera’s former home in Borella.Entering active politics with the LSSP in 1974, Prof. Vitarana later emerged as a key figure within leftist political circles. Following the 2004 General Election, he was appointed to Parliament as a United People’s Freedom Alliance (UPFA) National List MP and was subsequently sworn in as Minister of Science and Technology.

He was re-appointed to Parliament via the UPFA National List after the 2010 General Election. Although he initially did not retain a Cabinet portfolio, he was appointed Minister of Technology and Research in May 2010. In November the same year, he was elevated to the position of Senior Minister of Scientific Affairs.

Prof. Vitarana lost his Cabinet portfolio following the 2015 Presidential Election. At the subsequent Parliamentary Election in 2015, he was included in the UPFA’s National List nominations but was not appointed to Parliament.

In recognition of his significant contributions to the fields of science and technology, he was conferred the prestigious Vidya Jyothi title in 2017.

On December 4, 2019, he was appointed Governor of the North Central Province and was sworn in before then President Gotabaya Rajapaksa. He served in that capacity until 2020.

Prof. Vitarana’s passing marks the end of an era in leftist politics in Sri Lanka. Funeral arrangements are yet to be announced.

His remains lay at the N. M. Perera Centre, 106 N. M. Perera Mawatha (Cotta Road) from 8 am yesterday (14). The funeral will take place at the New Crematorium, General Cemetery, Borella at 4.30 pm on Monday, February 16.

Prof. Vitarana leaves his children Menika, Ranmal, and Ranil, and brother Nihal. He was predeceased by his wife, Kamini.

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Thailand to recruit 10,000 Lankans under new labour pact

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Sri Lanka and Thailand have concluded negotiations on a landmark labour cooperation framework that will pave the way for the recruitment of 10,000 Sri Lankan workers under a pilot project approved by the Thai Cabinet.

The development follows a series of virtual negotiations between officials of both countries to finalise two key bilateral instruments — a Memorandum of Understanding on Labour Cooperation and an Agreement on the Employment of Sri Lankan Workers in Thailand.

The discussions were facilitated by Sri Lanka’s Embassy and Permanent Mission in Bangkok, with the participation of Ambassador and Permanent Representative Wijayanthi Edirisinghe and officials from the Ministry of Labour and the Sri Lanka Bureau of Foreign Employment (SLBFE), alongside their Thai counterparts.

According to officials, the Thai Cabinet has already granted approval to recruit 10,000 Sri Lankan workers to address labour shortages in several sectors of the Thai economy. The pilot initiative is expected to generate structured and gainful employment opportunities for Sri Lankans in fields including construction, agriculture and livestock, food and beverage, industry, educational institutions, aquatic animal processing and mining.

Following comprehensive discussions, both sides finalised the draft texts of the two agreements.

The documents will now be submitted to the respective Governments for formal approval prior to signing. The signing ceremony is expected to take place at ministerial level in the first quarter of 2026.

Officials described the conclusion of negotiations as a significant milestone in bilateral relations, noting that the framework is designed to ensure safe, orderly and regular labour mobility while safeguarding the rights and welfare of Sri Lankan workers under a transparent and regulated mechanism.

The initiative comes amid ongoing efforts by Sri Lanka to expand overseas employment opportunities and enhance foreign remittance inflows, while ensuring stronger protection for migrant workers through government-to-government arrangements.

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