News
SJB demands transparency in debt restructuring process
The Samagi Jana Balawegaya (SJB) has urged the government to maintain transparency in the ongoing debt restructuring process as national elections are around the corner and that the next government will have to honour the conditions agreed upon by the incumbent administration.
The SJB said so soon after the government of Sri Lanka rejected international bondholders’ proposal in respect of restructuring more than $12 billion in debt.
Some of the proposal’s “baseline” assessments and a lack of a contingency option in the case of continued economic weakness were the two main reasons the deal was not agreed, the government said in a statement.
The following is the text of statement issued by Dr. Harsha de Silva, MP, on behalf of the SJB: “These initial comments are based on the first reading of the press release by the Finance Ministry moments ago.
“We reserve the right to make additional comments upon in depth study of the proposals in the attachments.
“At the outset, we note with disappointment that there has been absolutely no transparency in the government’s debt restructuring process even though we had requested for the same. In fact I personally requested a meeting with the relevant stakeholders, both as the economics spokesperson for the main Opposition SJB, and as the Chairman of the COPF. That opportunity was not provided, instead a meeting with government officials was arranged to discuss the IMF programme which we had no reason to attend as we anyway meet the delegation during their visits and exchange views on the same.
“From the media statement it is obvious that the government has failed to strike a deal favourable to the people of
Sri Lanka. We acknowledge however, that it is better to withdraw from the discussions than to agree to a bad deal.
“Having said that, the statement by the President’s Chief of Staff Sagala Ratnayaka that the two sides agreed on two of the four issues is not accurate when the note categorically states that no agreement had been reached, only that they ‘came closer to meeting of minds’ if a significant additional payment was made and even then, contingent upon the government side agreeing to the bondholders remaining conditions.
It is clear that the participating bond holders do not want to move away from the original macro linked bond (MLB) structure they proposed based on the performance of the Sri Lanka economy to be measured on their much higher ‘alternative baseline’ as opposed to that of the IMF. The main problem with this approach from the point of view of Sri Lanka is with their proposed structure of sharing the upside. It is not acceptable given the pain already incurred and will be incurred for decades to come by domestic creditors forced upon by the domestic debt restructure. It is now clear the alternative restructuring proposal by the government consisting of a mix of plain vanilla and MLB has been rejected by the bond holders.
“We do understand the need for some type of value recovery instrument (VRI) that could be a component of the final restructured series, but we are of the opinion that to link the same to every bond takes away the freedom of a future government to manage the nation’s liabilities in the most beneficial way for Sri Lanka. It is possible to discuss the VRI structure that is detachable from the main instrument.
“We are happy to note the inclusion of a discussion on a possible governance linked bond (GLB) structure and would be interested in discussing how that can be worked into a possible instrument to be agreed upon.
“We urge the government to be much more transparent in this restructuring process given that elections are around the corner and that the next government and those to come will be held responsible to honor the conditions agreed upon by this government in its final months. We are fully aware that any unilateral suspension of meeting any of the agreed payments would mean a second default which would be an absolute disaster.”
News
CEB trade unions hint at stringent industrial action after talks fail
Trade unions of the Ceylon Electricity Board (CEB), backed by the powerful Ceylon Electricity Board Engineers’ Union, have warned of accelerated trade union action following the collapse of crucial discussions held on Monday (16) with the CEB Chairman, who also serves as Secretary to the Ministry of Power and Energy.
The issue is expected to take centre stage at today’s press conference, with unions signalling that a token strike, possibly a 12-hour countrywide action, could be staged next week unless authorities urgently intervene.
The meeting earlier this week ended without what union representatives described as any “positive or constructive outcome.”
Trade union leaders expressed disappointment that their key concerns had not been substantively addressed during discussions with the Chairman.
At the heart of the dispute is the unions’ demand for a collective agreement in accordance with Section 18(j) of the Sri Lanka Electricity Act No. 36 of 2024. Trade union representatives maintain that the law provides for structured engagement between management and employees and that a formal collective agreement is necessary to ensure transparency and industrial stability within the institution.
The unions also submitted what they termed a reasonable proposal to safeguard the CEB Employees’ Provident Fund (EPF), voicing concerns over the long-term security of workers’ retirement benefits.
However, according to trade union sources, those proposals were not adequately taken up during the discussions.
A senior electrical engineer told The Island that further internal consultations were being held to decide the next course of action. “There is growing frustration among employees. The issues raised are fundamental and relate directly to statutory compliance and the financial security of staff,” he said.
The Island learns that unless there is meaningful engagement from the authorities, the proposed token strike could mark the beginning of more stringent industrial action.
Energy sector observers warn that any escalation of trade union unrest at the CEB could have serious implications for the country’s power sector stability at a critical time.Further developments are expected following today’s media briefing.
By Ifham Nizam
News
PM reveals allowances and perks available to MPs
Prime Minister Dr. Harini Amarasuriya yesterday (19) revealed allowances and benefits provided to Members of Parliament at present.She did so while responding to a question raised by Samagi Jana Balawegaya MP Chaminda Wijesiri.
According to the disclosure:
An MP receives a monthly allowance of Rs. 54,285, with an entertainment allowance of Rs. 1,000 per month.
Driver allowance is Rs. 3,500 per month; however, if the MP is provided with a driver by the Ministry of Public Security and Parliamentary Affairs, no driver allowance is paid.
Telephone allowance is Rs. 50,000, while transport allowance is Rs. 15,000 per month.
Office allowance amounts to Rs. 100,000.
MPs attending parliamentary sessions receive Rs. 2,500 per day, while Rs. 2,500 per day are given for MPs attending committee meetings on non-sitting days.
Meanwhile, Members of Parliament also receive a fuel allowance based on the distance from their elected district to Parliament.
For national list MPs, this is calculated as 419.76 liters of diesel per month, paid at the approved market rate on the first day of each month.Dr. Amarasuriya also emphasised that these allowances are structured to cover official duties and transportation costs.
News
CID expresses regret to Natasha; IGP to issue guidelines on ICCPR arrests
Former OIC of the Cyber Crime Investigation and Intelligence Analysis Unit of the CID, M.M.U. Subhasinghe, yesterday expressed his regret in writing to civil activist and comedian Natasha Edirisooriya at the Supreme Court regarding her arrest under the International Covenant on Civil and Political Rights (ICCPR) Act.
The Attorney General’s Department, appearing on behalf of the respondents, informed the court that the IGP would issue a set of guidelines via a circular to all police officers to prevent unlawful arrests under this Act in the future. It was further noted that the circular would be issued within two weeks, and the petitioner, Natasha Edirisooriya, has examined and agreed to these guidelines.
These submissions were made yesterday before a three-judge bench of the Supreme Court, led by Chief Justice Preethi Padman Surasena, during the hearing of the Fundamental Rights (FR) petition filed by Edirisooriya challenging her unlawful arrest.
Following these developments, the court ordered the respondents to inform the court via a motion within two weeks of issuing the IGP’s circular and ordered the conclusion of the case proceedings.
Natasha Edirisooriya was present in open court yesterday. Addressing her, Chief Justice Surasena stated that the court appreciates the manner in which the legal proceedings were brought to a conclusion.
The letter expressing regret stated: “As the arresting officer, considering the totality of circumstances, I wish to express deep regret to you for the arrest on 27th May 2023 and your incarceration in remand custody till 5th July 2023 consequent thereto. I also extend my deep regret regarding the damage that may have been caused to your reputation and dignity, and mental and emotional trauma caused by the arrest and incarceration.”
The respondents agreed to express this regret and issue the circular based on the specific conditions put forward by Edirisooriya in consultation with her counsel Suren Fernando and the legal team.
By AJA Abeynayake
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