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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
Govt. urged to halt ‘illegal’ presidential pardons
By Shamindra Ferdinando
The government is coming under pressure from civil society organisations to formulate a clear ‘mechanism’ to deal with requests for presidential pardons.
Representing civil society organisations, Gamini Viyangoda yesterday flayed the NPP government for the delay in taking action against Ven. Galagoda Aththe Gnanasara Thera, after the Supreme Court declared the 2019 presidential pardon granted to him by President Maithripala Sirisena null and void. He said successive Presidents had abused their executive power to release convicted persons from prison.
Purawesi Balaya activist Viyangoda pointed out that the Supreme Court ruled that President Sirisena had acted arbitrarily and failed to independently consider the relevant materials before exercising his executive power.
The Court of Appeal, in August 2018, sentenced Gnanasara Thera, General Secretary of the Bodu Bala Sena (BBS), to six years rigorous imprisonment for contempt of court over his conduct during proceedings concerning missing journalist Prageeth Ekneligoda. Viyangoda said that those who had been affected by the monk’s conduct have the right to know on what basis the President released him, in May 2019.
The Court of Appeal yesterday (05) ordered the relevant authorities to enforce the remaining period of imprisonment imposed on the Thera.
Gnanasara Thera, who had been subject to an open warrant for his arrest, was produced before the Court of Appeal, today, by prison officials.
Having considered the submissions made before it, the Court of Appeal directed the Commissioner General of Prisons to take the necessary steps to enforce the remaining period of the sentence imposed on Gnanasara Thera. Police on Saturday (03) apprehended the monk at a forest monastery in Kalutara. The Colombo Magistrate’s Court on Sunday (04) ordered the Thera to be remanded in custody till Monday.
Appearing for Gnanasara Thera, Attorney-at-Law Iresh Seneviratne, together with Attorney-at-Law Pasan Karunaratne, told the court yesterday that his client had been experiencing severe mental distress and had therefore gone to an ‘Aranya Senasanaya’, where he had been staying.
Viyangoda said that examination of presidential pardons, executed over the years, would reveal how successive leaders exploited the executive power to appease their own. Responding to The Island queries, Viyangoda said that Sirisena, in Sept. 2019, just two months before the presidential election, granted Jude Shramantha Jayamaha a Presidential pardon.
Jude Shramantha Jayamaha was sentenced to 12 years by the High Court, but the Court of Appeal revised that sentence to death, in July 2012, which the Supreme Court later upheld. Viyangoda said that though the Supreme Court, in June 2024, declared that the particular Presidential action was illegal and arbitrary, law enoforcement authorities were yet to take tangible measures to enforce the court directive.
Viyangoda stressed that no President should exercise the right to pardon a convicted on his or her own without following laid out procedures. According to him, Sirisena appeared to have simply ordered the monk, and the convicted murderer, released in response to appeals received by him. A comprehensive investigation could identify those who had been involved in these wrongdoings.
News
GL urges cautious handling of Saudi death row case, blasts govt. over BRICS affair
Convenor of Janathawadi Joint Opposition, Prof. G. L. Peiris, yesterday (05) emphasised the responsibility on the part of the government and others to act cautiously when making representations in respect of Sivarasa Anojan facing death sentence in Saudi Arabia over a controversial social media post.
Addressing the media at former President Ranil Wickremesinghe’s Flower Road Office, Prof. Peiris emphasised that whatever representations should be made through the Foreign Ministry.
The one-time External Affairs Minister warned of dire consequences of political party leaders, members of Parliament and civil society making direct representations and trying to get in touch with various Saudi authorities over the phone.
Prof. Peiris said that those who intervened on behalf of Anojan should keep in mind that Sri Lanka should be mindful of the Saudi way of governance and sensitivities.
The former Minister questioned the circumstances Sri Lanka was left out of the recent BRICS summit held in New Delhi. He recalled how former President Wickremesinghe discussed Sri Lanka’s entry into BRICS with Russian President Putin and received an invitation for the Summit there but as a result of the change of government, in Sept. 2024, Sri Lanka ignored that invitation.
That resulted in Sri Lanka being left out from the New Delhi summit, Prof. Peris said.
Prof. Peiris pointed out the absurdity in sending the Foreign Secretary to the BRICS Summit in Russia instead of the President, PM or the Foreign Minister to represent the country.
Referring to the forthcoming conclusion of the current IMF programme, initiated during Wickremesinghe’s time, Prof. Peiris said that Sri Lanka lost a great opportunity to benefit from BRICS by failing to represent the country at a higher level at the Russian summit.
The BRICS nations established the New Development Bank (NDB), originally called the BRICS Development Bank, Prof. Peiris said.
Dismissing NPP government’s explanation regarding Iranian ships awaiting necessary supplies but deprived by US imposed restrictions, the former Minister strongly criticised the administration’s response. According to him, this government responded in a similar manner when the US sank an unarmed Iranian frigate just outside Sri Lankan territorial waters in March this year.
Prof. Peiris declared that the government’s assertion that the US restrictions weren’t only directed at Sri Lanka but all Iranian vessels in other regions as well was not acceptable (SF)
News
Shiranthi files anticipatory bail application
Former First Lady Shiranthi Rajapaksa, who is in Singapore, has filed an anticipatory bail application before the Maligakanda Magistrate’s Court, seeking an order preventing her arrest in connection with an ongoing investigation into the financial affairs of the Siriliya Saviya organisation.
The former First Lady left for Singapore on 16 Sept., and the police handed her a notice at the airport, directing her to appear before the Financial Crimes Investigation Division (FCID).
Attorney-at-Law Jayabalan has filed the petition, naming the Director of the Criminal Investigation Department as the respondent.
The petition states that Shiranthi Rajapaksa is currently overseas receiving medical treatment and fears that she may be arrested at the airport upon her return to Sri Lanka.
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