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Sabry denies China caused SL debt crisis
Foreign Minister Ali Sabry, PC, has dismissed assertions that China caused the current economic crisis here.The Minister made Sri Lanka’s position clear in an interview with WION’s diplomatic correspondent Sidhant Sibal. Asked whether Minister Sabry believed that the current economic crisis is due to China, its policy of debt crisis, the Minister has said: No, I don’t agree with that, which is a western phrase. We don’t agree with that. The Chinese never came and forced us to take money. Actually, we have gone and sought funds and they have respected that and invested in our country. They are the biggest investor in our country, we don’t agree with that phrase. Having taken the money we have put them into proper use or who so ever we can get in return is the issue for Sri Lankans, therefore we don’t associate with that kind of phrase, actually Chinese have been good friends for us and they have been the biggest investor in the country post conflict.
Commenting on Sri Lanka’s ties with China, WION quoted Sabry as having said: “Our relationship with Beijing is very strong for a long period of time, they have been our close friend. This year we have celebrated 70 years of economic ties with them, beginning with the Rubber Rice pact, we exported rubber to them and imported rice. So ours is a strong relationship and basically it has been a commercial relationship, economic relationship where they have come and invested heavily in Sri Lanka during a difficult period of time for us and during the 26 years of the conflict, during the last few years, Chinese supported us with supply of arms to get rid of the threat from one of the most ruthless terrorist organizations, the LTTE and in order to bring back peace to our country. In that context we have had a very good relationship with them. Sri Lanka always follows the dynamic, neutral foreign policy where we would want everyone to be a friend of Sri Lanka and enemy to none. That is our foreign policy, that is our relationship, so given this dynamic, we would continue the same thing but taking India’s sensitivities and security concerns to heart because that is very important for us.”
WION: How has the talks been with the IMF and has India played a role in facilitating the talks? I believe this is the 17th bailout you are trying to secure.
Ali Sabry: I started the negotiations with them, and they have studied, and staff-level agreement has been reached, prior action before the EFF, extended fund facility, we have agreed on. We have agreed and implemented some of those things. The EEF facility is for 2.9 billion, and the moment the IMF gets involved, it infuses confidence in the system, ADB, World Bank all come on the table, and we probably will be able to return to the money market, so that is why it is so important. India, had actually provided us with a lifeline during the most crucial time of our history, in terms of economy and those credit lines kept us going for a long period of time. I remember, when I was in Washington, your Finance Minister Sitharaman led your group and supported us in our discussion with the IMF and they have continued to do so. So it is important and Indian support is very critical to us. India has played a great role in supporting the neighbour in the most difficult time of its history.
WION: Why didn’t China offer financial assistance, as India did, during the recent crisis?
Ali Sabry: The Chinese also supported us just before the particular period of time, they also provided us with some financial facilities and credit line, also they did provide us some soft arrangement to bolster our reserves at the central bank, apart from that some humanitarian assistance also. We hope China will step up in providing us with debt restructuring assurances, along with India so that we can go to the IMF and resolve the matter once and for all and get back to the recovery path. So, it’s important for all creditors and all investors that Sri Lanka recovers and recovers fast. The longer the debt gets suspended, the longer it takes to recover. It is bad for all the creditors and investors; everybody understands that, including China.
WION: Has China offered to restructure…
Ali Sabry: We are still in discussions for that, they have been cooperative and part of the common platform where we share information, recently in Washington. They also took part on the virtual platform. So China, India, Paris club, and Japan are all cooperating with us, so we are in the final stage of trying to get the debt restructuring and assurances. We are hopeful all countries and all our friends will not let us down.
WION: Have you asked for more Indian support.
Ali Sabry:Not really, right now our economy has stabilized to some extent and we should be able to manage ourselves. Right now, we have reached out to India and the rest of the world, it’s not for aid or any more loans but basically investments. We are working with Indians and Indian companies and the government to work together in various areas for mutual interests, so that investment comes into the country and it will be beneficial for both Indians and Sri Lankans.
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Advisory for Severe Lightning issued for Galle, Matara, Kaluthara and Rathnapura districts
Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre Issued at 12.30 p.m. 21 March 2026, valid for the period until 11.00 p.m. 21 March 2026
Thundershowers accompanied with severe lightning are likely to occur at some places in the Galle, Matara, Kaluthara and Rathnapura districts after 1.00 p.m.
There may be temporary localized strong winds during thundershowers. General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.
ACTION REQUIRED:
The Department of Meteorology advises that people should:
Seek shelter, preferably indoors and never under trees.
Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
Avoid using wired telephones and connected electric appliances during thunderstorms.
Avoid using open vehicles, such as bicycles, tractors and boats etc.
Beware of fallen trees and power lines.
For emergency assistance contact the local disaster management authorities.
News
Sri Lanka says it denied US request to land two aircraft at Mattala airport
Sri Lanka’s president says his government turned down a request from the United States to land two US combat aircraft at a civilian airport earlier this month.
President Anura Kumara Dissanayake told Sri Lanka’s parliament on Friday that Washington had requested permission for the aircraft to land at Mattala Rajapaksa International Airport in southern Sri Lanka from March 4 to 8.
The request was made on February 26, two days before the US and Israel launched their military offensive against Iran.
“They wanted to bring two warplanes armed with eight antiship missiles from a base in Djibouti”, Dissanayake told lawmakers. “We turned down the request to maintain Sri Lanka’s neutrality”, he added to applause.
The US-Israeli war on Iran has sparked widespread concern globally, as Iranian missile and drone attacks across the wider Middle East have sent energy prices soaring and fuelled fears of a widening conflict.
US President Donald Trump has also been pressuring Washington’s allies to show more support for the war, slamming NATO countries as “cowards” for refusing to help secure the Strait of Hormuz.
Iran has essentially shuttered the critical Gulf waterway amid the war, forcing leaders around the world to scramble to try to offset the effects on their economies and energy supplies.
Amid the turmoil, many countries have refused to get directly involved in the war while calling for urgent de-escalation.
On Friday, Switzerland announced that it would halt any weapons exports to the US that could be used in military operations against Iran, citing its longstanding policy of neutrality.
“The export of war materiel to countries involved in the international armed conflict with Iran cannot be authorised for the duration of the conflict”, the Swiss government said.
Sri Lanka’s president also cited his country’s neutrality in the decision to deny the US request to land the two aircraft at Matalla airport earlier this month.
Dissanayake said he had received another request that same day, on February 26, from Iran to seek permission for three naval vessels to make a goodwill visit to Sri Lanka.
“With two requests before us, the decision was clear,” he said, noting that the government denied both to avoid taking sides as signs of escalating conflict emerged.
“Had we said ‘yes’ to Iran, we would have had to say ‘yes’ to the US, as well”, Dissanayake added.
In early March, Sri Lanka’s navy rescued 32 Iranian crew off IRIS Dena after it was torpedoed by a US submarine off the country’s coast, killing at least 84 people.
Days later, Sri Lanka evacuated more than 200 crew members from a second Iranian vessel, IRIS Bushehr, after the ship requested assistance from Colombo.
[Aljazeera]
News
President maintains Lanka has been even-handed in dealing with Iran and US
Sri Lanka refused the request by three Iranian ships to come to Sri Lanka on a goodwill visit and the request by the United States to land two of its fighter jets in Mattala, President Anura Kumara Dissanayake told Parliament yesterday.
“Sri Lanka maintained neutrality by refusing the two requests by both the US and Iran,” he said.
President Dissanayake provided a clarification on domestic fuel prices in light of rising crude oil prices in the global market and subsequent fuel price increases in other countries, triggered by the ongoing crisis in the Middle East.
The President highlighted that the Ceylon Petroleum Corporation (CPC) currently supplies 57% of the country’s fuel requirements, while the remaining 43% is supplied by the private sector.
He further noted that private sector suppliers have requested pricing that reflects current global market rates for the fuel they import.
Accordingly, the President emphasised that a decisive decision on fuel price adjustments must be reached as expeditiously as possible to ensure the continuity of the national fuel supply.
Addressing the Parliament, the President stated that the current pricing formula dictates that for every one-dollar increase in global oil prices, domestic fuel prices must rise by Rs. 2.
He noted that the primary impact being faced is driven by the surge in global fuel prices rather than the depreciation of the rupee against the US dollar.
The President said that, globally, countries have been compelled to make difficult decisions regarding fuel costs, with price increases ranging from approximately 6% to 50%.
He added that while global prices have risen by as much as 49%, the domestic increase has been limited to 8%.
He further stated that Sri Lanka is currently facing a significant challenge in maintaining fuel supply.
The Ceylon Petroleum Corporation (CPC) accounts for 57% of the country’s fuel supply. He noted that had the CPC been the sole supplier, fluctuations could have been managed by offsetting current losses with future profits.
However, he said the private sector now controls 43% of the market, and their position is that if retail prices do not reflect the current landed cost of fuel, they will cease imports.
He added that, from a business perspective, this is a valid concern, as private companies reportedly incur a loss of approximately USD 55 million per shipment, which he said is unsustainable.
The President emphasised that the contribution of the private sector is essential to maintaining the national fuel supply, but noted that they will only participate if they are able to sell at cost-reflective prices.
He stressed that the issue of fuel pricing must, therefore, be addressed urgently.
He also pointed out that under the existing Act, companies are permitted to increase prices; however, the maximum retail price is determined by the Ceylon Petroleum Corporation.
“Although we have entered into agreements with these private companies, the necessary legislative amendments to the Act have not yet been finalised,” he noted.
Regarding government revenue, the President stated that tax income from fuel currently stands at Rs. 20 billion, compared to Rs. 240 billion generated last year from taxes on diesel.
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