Connect with us

Latest News

Renegotiating with the IMF is a highly complex and potentially unsuccessful process -Minister of Foreign Affairs, Justice, Prison Affairs & Constitutional Reform

Published

on

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)



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Foreign News

‘Time for Ukraine to get new president,’ says Trump after Zelensky condemns diesel deal

Published

on

By

[file pic]

US President Donald Trump has said he thinks “it’s time for Ukraine to get a new president” as he responded to Volodymyr Zelensky’s criticism of the US diesel deal with Russia.

The Ukrainian president warned a new deal to release millions of tonnes of Russian diesel into the US would provide Moscow with money to continue its war against his nation, calling it a gift to Russian President Vladimir Putin.

Trump told reporters outside the White House on Saturday that Zelensky “wants to make problems for the world” by continuing to authorise attacks on Russian refineries.

“He’d better damn well stop,” Trump said, before suggesting Ukraine should “get a new leader who can make a deal”.

Global fuel supplies, including diesel, have been severely limited by the war against Iran launched by the US and Israel, which led to the effective closure of the Strait of Hormuz, through which roughly a fifth of the world’s oil products usually flows.

Russia – a major producer – and Ukraine have recently intensified their strikes on each other’s energy infrastructure and transport facilities, further straining energy markets.

“We said, ‘you can do whatever you want to Russia, don’t hit the refineries’, because that’s a world problem that’s caused,” Trump continued.

“He could have made many deals and for some reason, he never does.”

Putin’s envoy Kirill Dmitriev described Trump’s intervention as “iconic and historic”, saying that Ukraine “needs leadership actually focused on peace”.

The US president confirmed on Friday that an agreement had been reached with Moscow to suspend sanctions on Russian diesel exports until 7 April.

Zelensky reacted by saying it would allow Moscow to raise new funds to source new military equipment to continue the war.

He also accused Moscow of taking the deal “to mean they can keep fighting, to mean they keep dropping bombs on cities” following deadly new strikes on Zaporizhzhia.

The Ukrainian president spoke to several allies on Saturday to discuss the latest developments, calling for “real decisions to protect lives in Ukraine” and to protect European security.

A Downing Street spokesperson said UK Prime Minister Andy Burnham had spoken to Zelensky and offered his “complete solidarity”.

The pair had agreed Russia should acquiesce to “an immediate energy ceasefire” and end its attacks on shipping in the Black Sea, the spokesperson said, as “this would immediately release more energy and food supplies into the global market”.

News of the US-Russia diesel deal was also met with criticism by EU’s foreign affairs chief Kaja Kallas, who echoed Zelensky in saying that suspending sanctions “provides Moscow with more revenues to wage war”, adding: “This is not the time to ease pressure on Russia, and Europe won’t.”

She said European foreign ministers intended to approve the biggest set of sanctions on Russia since the start of its full-scale invasion on Monday.

The deal with Russia is the latest effort from Trump to lower fuel prices in the US ahead of the midterm elections, after months spent grappling with the political consequences of the Iran war.

That conflict, which began in February, has sent the cost of petrol and in particular diesel skyrocketing, which has soured his standing with the American public who have been stung by the higher pump prices and knock-on effects that led to across-the-board inflation.

The average price of diesel is currently $6.28 (£4.74) a gallon, according to the AAA – up from last month’s $5.94 average, and $3.68 last year.

Under the deal, Russia would release an initial 300,000 tonnes of diesel “to the American and global marketplace” followed by an additional 500,000 tonnes in November.

A further million would follow, Trump wrote on Truth Social, and then another 3m tonnes “within a short period of time” – but he noted that this delivery will be “based on the condition of their diesel refineries”.

In the past 10 months, Russia experienced two waves of severe fuel shortages across the country due to Ukrainian drones strikes on its oil refineries.

Diesel production in Russia dropped by an estimated 30%, according to the International Energy Agency.

Trump had already called for new elections in Ukraine last December, saying Ukrainian voters should have the choice to replace Zelensky.

Since the war broke out in 2022 Ukraine has been under martial law, meaning elections are suspended.

[BBC]

Continue Reading

Latest News

Renshaw 190 lifts Australia to 390 before Hazlewood strikes

Published

on

By

Matt Renshaw got out for 190 after tea [Cricinfo]

Matt Renshaw produced a herculean 190 and powered Australia to an unlikely first-innings total before Josh Hazelwood dismissed South Africa opener Ryan Rickelton for a duck late on day two of the first Test in Durban. Australia had their backs to the wall at 124 for 6 in familiar batting woes but Renshaw rescued the innings with his 397-ball marathon effort.

Renshaw fell short of what would have been a maiden double ton after being dismissed two balls into the final session, caught at slip off the bowling of offspinner Simon Harmer. His only other Test century was against Pakistan at the SCG in January 2017, when he made 184.

After 137.2 overs in the field, South Africa openers Rickelton and Aiden Markram faced a tough challenge under increasingly gloomy skies. A weary Rickelton did not fare well after edging Hazlewood to third slip in the second over, having attempted a lavish drive to a full delivery.

But Markram and new No. 3 David Bedingham were unruffled, and hit several attractive boundaries before bad light ended the day’s play just 8.4 overs into South Africa’s innings.

Having been on the back foot for much of the opening day, Australia were on top after day two as Renshaw produced the fourth highest score by an Australian in South Africa. Remarkably, he scored 174 of his runs with the last four batters, the most anyone has scored in a Test innings while batting with the tail since 2002.

Renshaw received strong support from the lower order, marked by an 86-run seventh-wicket partnership with Pat Cummins and a 134-run stand with Nathan Lyon, the second-most for the ninth wicket for Australia in their Test history.

Cummins and Lyon faced a combined 190 deliveries – that was 27 more than Australia’s top four batters – although batting became easier on a surface that on day one produced steep bounce and seam movement.

It has been a tough journey for Renshaw, who might have resurrected his Test career after providing a major tonic for Australia’s reshuffled batting order. He reached his century just before the lunch break with a boundary through the leg side, and raised his arms in delight and took off his helmet, showing off a beaming smile.

Highly disciplined but also showing a knack of going through the gears, Renshaw became the first Australia batter to face 300 balls in a Test innings since Usman Khawaja scored 232 against Sri Lanka in Galle in early 2025.

Renshaw has relished moving down to No. 5 after Nic Maddinson’s surprise selection as an opener, along with Cameron Green missing the match through injury. He had only filled the position four times previously – thrice during the 2023 tour of India, and once on the 2017 tour – with modest results, although has enjoyed success with Queensland there.

Renshaw had returned to Test cricket after three-and-a-half years as an opener against Bangladesh in August. While Maddinson’s selection has initially backfired, Renshaw looked at ease in the middle order, and equally untroubled against the seamers and spinners.

Having dominated much of the shortened first day, South Africa were left frustrated with their attack blunted by Renshaw. Seamers Wiaan Mulder, Marco Jansen and Anrich Nortje took nine wickets between them but struggled to consistently threaten on day two.

Spin duo Harmer and Keshav Maharaj claimed just one wicket from 48.2 overs, with Renshaw negating their influence, although the surface is expected to spin significantly later in the match. It was a disappointment for the sparse crowd in Durban, with the atmosphere rather subdued for Australia’s first Test series in South Africa since the 2018 sandpaper scandal.

Earlier on day two, Australia resumed their first innings on 187 for 6 after just 65.2 overs were bowled on a truncated opening day due to bad light. Renshaw and Cummins aimed to build on their unbeaten 63-run partnership from overnight. It did not take Renshaw long to reach his fourth Test half-century after edging Nortje through third slip and gully as he celebrated the milestone for the first time since March 2017.

Nortje, who played a starring role on day one after a three-and-a-half year exile from Test cricket, once again unfurled vicious short deliveries but occasionally tried to outfox Cummins by pitching up. A focused Cummins was unfazed, and pounced on a rare overpitched delivery with a beautiful square drive to the boundary. He had a fourth Test half-century in his sights – and the first since January 2024 – until, on 43, he edged a good-length delivery from Mulder to second slip.

Renshaw, meanwhile, showcased his much improved play against spin, reverse sweeping Maharaj with good effect to keep the scoreboard ticking over.

Much like Cummins, Mitchell Starc was intent on solid defence, and had a slice of luck when he edged Harmer through the hands of Markram at first slip as the ball flew to the boundary. South Africa had no hesitation in taking the second new ball, and Mulder capitalised when he clean bowled Starc with a cracker of a delivery that pitched on middle before crashing into the off stump.

But Renshaw kept South Africa at bay, and put the foot down in the back end of the elongated session. He hogged the strike after lunch as South Africa skipper Temba Bavuma deployed Maharaj and Harmer in tandem. The game went through a lull until the reintroduction of Nortje, who delivered a 143kph thunderbolt that whacked Renshaw on the grill of the helmet.

But Renshaw gave an immediate thumbs up and continued with his indefatigable effort after receiving medical attention. He reached 150 with a reverse sweep off Maharaj – and quite fittingly so, given his mastery of the stroke through the innings.

Lyon appeared set to bat through the entire second session before being trapped plumb lbw by a full delivery from Jansen, who was rewarded for a hostile spell before tea. The session was extended, but Hazlewood held firm with the bat before making an impact with the ball before stumps.

Scores:
South Africa 27 for 1 in 8.4 overs (Aiden Markram 15*, David Bedingham 12*; Josh Hazlewood 1-9) trail Australia 390 in 137.2 overs (Matt Renshaw 190, Pat Cummins 43; Marco Jansen 3-68, Wiaan  Mulder 4-68, Anrich Nortje 2-88 ) by 363 runs

[Cricinfo]

Continue Reading

Foreign News

Pope says death penalty ‘inadmissible’ as US plans to livestream execution

Published

on

By

[file pic] Pope Leo XIV attends a weekly general audience at St Peter's basilica in The Vatican [Aljazeera]

Pope Leo XIV has declared that the death penalty is “inadmissible” while his home country, the United States, announces plans to livestream an execution by firing squad.

Marking World Day Against the Death Penalty on Saturday, the pope reiterated the Catholic Church’s teaching on capital punishment, writing on X that it was “inadmissible because it is an attack on the inviolability and dignity of the person”.

“The common good can be safeguarded and the requirements of justice can be met without recourse to capital punishment,” his post said.

“Effective systems of detention have been developed that protect citizens while at the same time do not completely deprive those who are guilty of the possibility of redemption,” added the leader of the Catholic Church.

The American Pope’s comments come days after US Secretary of Defense Pete Hegseth said on Thursday that the firing squad execution of Nidal Malik Hasan on December 3 will be livestreamed.

Hasan was convicted of killing 13 people and wounding 32 others in a shooting at the Fort Hood military base in 2009.

Pope Leo did not specifically refer to the planned execution, or last month’s botched execution attempt on Christa Pike,  who survived two doses of the lethal injection in Tennessee.

But his post came hours after his top deputy, Cardinal Pietro Parolin, the Vatican secretary of state, told Vatican News that the plan to livestream Hasan’s execution was “unacceptable”.

It was Leo’s predecessor, Pope Francis, in 2018 who first amended official Catholic teaching to declare capital punishment “inadmissible” in all circumstances.

[Aljazeera]

Continue Reading

Trending