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Renegotiating with the IMF is a highly complex and potentially unsuccessful process -Minister of Foreign Affairs, Justice, Prison Affairs & Constitutional Reform
Minister of Foreign Affairs , Justice, Prison Affairs & Constitutional Reform, President’s Counsel Ali Sabry emphasized that renegotiating with the International Monetary Fund (IMF) is a very serious and unsuccessful endeavour.
The Minister highlighted that resuming negotiations with the IMF could jeopardize the next tranche due in December, as well as subsequent disbursements from the World Bank (WB) and the Asian Development Bank (ADB).
As a result, between December 2024 and January 2025, the country could lose between USD 1.2 billion to 1.3 billion, which could lead to further instability, Minister Ali Sabry warned.
Minister of Foreign Affairs, Justice, Prison Affairs & Constitutional Reform, President’s Counsel Ali Sabry, made these remarks during the news conference titled ‘Two Years of Progress and Advancement’, held at the Presidential Media Centre today (28).
The Minister further stated,
In 2022, the Ministry of Foreign Affairs was assigned a crucial role due to the country’s challenging circumstances. We faced the task of rebuilding strained foreign relations, regaining the trust of the international community, and leveraging international relations to boost the country’s economy.
After almost two and a half years of dedicated effort, we have successfully stabilized the country. Our international reputation now reflects the positive results achieved domestically. It is important to acknowledge that President Ranil Wickremesinghe’s leadership was instrumental in reaching these outcomes.
Securing agreements with 17 countries for debt restructuring through international relations is a significant achievement for us. We have completed the debt restructuring process while upholding our foreign policy, local identity, and sovereignty. Our swift recovery from the economic crisis has set a global example. Currently, countries such as Pakistan, the Maldives, and Bangladesh are seeking our advice on economic revitalization. The leadership of President Ranil Wickremesinghe in stabilizing the country has been recognized internationally.
Among the five countries—Lebanon, Venezuela, Argentina, Zimbabwe and Greece—that faced similar economic crises, only Greece has managed to recover so far and it took 12 years for Greece to do so. Sri Lanka stands out as the only country to have overcome an economic crisis in such a short period.
However, some individuals are misleading the public by advocating for renegotiations with the International Monetary Fund for narrow political objectives. For those considering pursuing this challenging and often unsuccessful process of renegotiation, I wish them “good luck.”
In March 2022, we officially communicated the desire to apply for an extended-fund facility. By the time we get the first tranche was March 2023. It took one year for us to agree on the Debt Sustainability Analysis (DSA).
The DSA is conducted based on five key parameters. First, the current national debt, which is 133% of Gross Domestic Product (GDP), must be reduced to 95%. Additionally, 9.3% of the current payment of the GDP which is going for foreign loan settlement has to be brought down to 4.5%.
Moreover, the primary budget balance should achieve a surplus of 2.1%. Furthermore, tax revenue should account for 15% of GDP. These goals are now legally established and cannot be easily altered. Any attempt to change them would require renegotiation, which would take at least another year.
If this happens, the IMF is likely to withhold the next instalment of USD 400 million due in December. If the IMF does not release the funds, the WB will also withhold its USD 400 million tranche. Consequently, the ADB will not release their USD 500 million allocation. This would result in a loss of USD 1.2 billion to USD 1.3 billion between December and January. The loss of these funds would make it impossible to prevent the country from destabilizing again, leading to a potential devaluation of the rupee and a rise in inflation.
The Ministry of Foreign Affairs has undertaken numerous initiatives to support and coordinate the country’s economic recovery. Additionally, it has played a significant role at the Ministerial level in advancing priorities for the Global South in multilateral forums and effectively addressing challenges related to multilateral human rights issues. It is also noteworthy that Sri Lanka has been elected to four mechanisms of the United Nations: the Committee on the Elimination of Discrimination against Women for the period 2022-2024, the Committee on the Protection of the Rights of Migrant Workers and Members of Their Families, the UNESCO Executive Board for the period 2023-2027, and the Economic and Social Council for the period 2025-2027.
Our foreign policy was recently evaluated in an article published by ForeignPolicy.com. The article noted that, despite the global power struggle, small sovereign states like Sri Lanka have been significantly impacted, yet Sri Lanka has navigated this situation remarkably well, maintaining strong relations with all major powers.
This success did not occur by chance. It is largely attributed to the knowledge, understanding, experience and personal connections of President Ranil Wickremesinghe. He is the only leader in this country capable of directly engaging with the head of state of any country.
It is also important to acknowledge the President’s directive to maintain the independence of the Foreign Service. As a result, the Foreign Service now operates with even greater independence and without political influence, surpassing the level of independence achieved during the tenure of former Minister Lakshman Kadirgamar.
(PMD)
Chinese President Xi Jinping has met Malaysia’s King Sultan Ibrahim in Kuala Lumpur as part of a regional push to shore up Beijing’s trade relationships.
The diplomatic stop on Wednesday marks the second leg of Xi’s three-nation tour, which also includes Vietnam and Cambodia, and comes amid sharp tariffs imposed by the United States that are reshaping the global economic landscape.
Sultan Ibrahim welcomed Xi in a colourful ceremony at the golden-domed Istana Negara palace before his meeting with Malaysian Prime Minister Anwar Ibrahim at the administrative capital of Putrajaya.
Xi touted a “new golden era” of Chinese-Malaysian relations, following the 50th anniversary of diplomatic ties last year. The king announced new cooperation between the countries in various fields, including artificial intelligence.
“This is a hugely significant visit,” said Al Jazeera’s Rob McBride, reporting from Putrajaya. “It takes place during this unprecedented trade war that is developing with the United States, with both Malaysia and China finding themselves in the middle.”
Khoo Ying Hooi, an associate professor in the department of international and strategic studies at Malaya University, said the visit offered a chance to “test the waters for regional solidarity” amid the US trade disruptions.
“It’s not just about friendship, it’s about realigning the regional centre of gravity towards Beijing,” she said.
Malaysia is the current chair of the Association of Southeast Asian Nations (ASEAN) bloc, whose members are among the hardest hit by new US tariffs.
ASEAN member Vietnam, a manufacturing powerhouse, was slapped with 46 percent tariffs, and Cambodia, a significant producer of low-cost clothing for big Western brands, was hit with a 49 percent duty.
Malaysia, Southeast Asia’s third-largest economy, was hit with a lower tariff of 24 percent. Though the measures have been paused for 90 days, President Donald Trump has warned that no country is “off the hook”.
[Aljazeera]
Police urge motorists who intend to use the Ella – Wellawaya Road to use alternative roads as there is a severe vehicle congestion due to inclement weather condition.
The UK Supreme Court has unanimously backed the biological definition of “woman” under the 2010 Equality Act.
It marks the culmination of a long-running legal battle which could have major implications for how sex-based rights apply across Scotland, England and Wales.
Judges sided with campaign group For Women Scotland, which brought a case against the Scottish government arguing that sex-based protections should only apply to people that are born female.
Judge Lord Hodge said the ruling should not be seen as a triumph of one side over the other, and stressed that the law still gives protection against discrimination to transgender people.
The Scottish government argued in court that transgender people with a gender recognition certificate (GRC) are entitled to the same sex-based protections as biological women.
The Supreme Court was asked to decide on the proper interpretation of the 2010 Equality Act, which applies across Britain.
Lord Hodge said the central question was how the words “woman” and “sex” are defined in the legislation.
He told the court: “The unanimous decision of this court is that the terms woman and sex in the Equality Act 2010 refer to a biological woman and biological sex.
“But we counsel against reading this judgement as a triumph of one or more groups in our society at the expense of another, it is not.”
He added that the legislation gives transgender people “protection, not only against discrimination through the protected characteristic of gender reassignment, but also against direct discrimination, indirect discrimination and harassment in substance in their acquired gender”.
Campaigners who brought the case against the Scottish government hugged each other and punched the air as they left the courtroom, with several of them in tears.
The Equality Act provides protection against discrimination on the basis of various characteristics, including “sex” and “gender reassignment”.
Judges at the Supreme Court in London were asked to rule on what that law means by “sex” – whether it means biological sex, or legal, “certificated” sex as defined by the 2004 Gender Recognition Act.
The Scottish government argued the 2004 legislation was clear that obtaining a GRC amounts to a change of sex “for all purposes”.
For Women Scotland argued for a “common sense” interpretation of the words man and woman, telling the court that sex is an “immutable biological state”.
Outside the Supreme Court, For Women Scotland co-founder Susan Smith said: “Today the judges have said what we always believed to be the case, that women are protected by their biological sex.
“Sex is real and women can now feel safe that services and spaces designated for women are for women and we are enormously grateful to the Supreme Court for this ruling.”
A UK government spokesman said: “This ruling brings clarity and confidence, for women and service providers such as hospitals, refuges, and sports clubs.
“Single-sex spaces are protected in law and will always be protected by this government.”
Conservative leader Kemi Badenoch described the ruling as a “victory for all of the women who faced personal abuse or lost their jobs for stating the obvious”.
But Scottish Green MSP Maggie Chapman, a prominent campaigner for trans-rights, said: “This is a deeply concerning ruling for human rights and a huge blow to some of the most marginalised people in our society.
“It could remove important protections and will leave many trans people and their loved ones deeply anxious and worried about how their lives will be affected and about what will come next.”
The Scottish government has not yet commented on the ruling.
[BBC]
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