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SL expects IMF bailout by end of next month

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By Sanath Nanayakkare

A staff-level agreement with the International Monetary Fund (IMF) and a programme for a bailout package for Sri Lanka would be finalised by the end of July 2022, Prime Minister Ranil Wickramasinghe told Parliament yesterday.

“The only safe option before us now is to hold talks with the IMF and, in fact, it’s our only option. We must take this path,” he said, delivering a special statement in Parliament.

From November 2019, Sri Lanka maintained a consistent hard line against seeking assistance from the IMF, causing historical damage to its economy.

Later, following a request by Sri Lanka for the IMF to intervene, the first in-person talks with the global lender for a bailout package commenced in Colombo on 20 June, they will continue over 10 days.

According to the Prime Minister, Sri Lanka has concluded the initial discussions with the IMF delegation and exchanged ideas on various sectors such as public finance, debt sustainability, stability of the banking sector, social security network, etc.

Referring to debt restructuring and honouring sovereign debt repayments consequent to a preemptive default by the country, Wickremesinghe said the framework for this will also be finalised by the end of July following consultations with financial and legal advisory firms Lazard Ltd. and Clifford Chance LLP.

“Representatives of Lazard and Clifford Chance are now in Sri Lanka to assist us in our debt restructuring. The formulation of this framework which is a key requirement of the IMF is now underway,” he said.

Sri Lanka hired the two firms in May 2022 to serve as financial and legal advisors on debt restructuring as the country sought a bailout from the IMF.

“Three high-ranking officials of the Indian government are scheduled to arrive in Sri Lanka today for discussions regarding the loans offered to the country in the future. We have sought more loans from India, but India cannot continue to lend us. We have to formulate a system to repay our loans,” he said.

“A team of representatives from the U.S. Department of the Treasury is also expected to arrive in Sri Lanka on Monday. We arranged for the arrival of these three teams in Sri Lanka so that we can conduct parallel discussions with them in an effective manner. It will intensify our efforts in expediting the recovery programme,” he said.

Referring to ongoing fuel crisis, the PM said “No country or organisation in the world is willing to provide fuel to Sri Lanka due to the country risk as the Ceylon Petroleum Corporation (CPC) has an outstanding debt of USD 700 million. Some suppliers are even reluctant to provide fuel for cash.”

“Sri Lanka is currently in need of USD 550 million to meet its monthly fuel needs. In the face of foreign exchange crisis, we are experiencing difficulties in securing required funds for this purpose. So, we will be importing maximum possible fuel stocks based on our dollar income. Resolving the fuel shortages, therefore, will take more time. I urge everyone to sparingly use fuel and reduce consumption until our reserves are at healthy levels.”

“The government has taken steps to import 100,000 MT of LP gas utilising a World Bank loan of USD 70 million and USD 20 million of the country’s own reserves. We will be able to eliminate the gas shortage once we have received these LPG stocks,” he said.

The PM also mentioned about the government’s plans to organise a financial aid conference led by India, Japan and China – the main lending countries of Sri Lanka – to seek their support at this critical hour.

“Through this conference, we hope to arrive at a general consensus on lending and repayment processes because these countries have different methodologies in this regard. If we receive the IMF seal of approval, the world will once again begin to trust Sri Lanka. An approval from the IMF will help us secure low-interest loans from other countries as well. We are currently holding discussions with the World Bank, Asian Development Bank, the United States, other friendly nations and several heads of state to secure interim short-term loans until we receive funding from the IMF. We will be able to lay the foundation to ensure economic stability following the successful completion of these undertakings. However, these by no means will be the end of our recovery effort. In fact, it will be the beginning of our journey which would firmly require us to build a more export-oriented economy with fiscal discipline in place,” he said.



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CIABOC probe: CC under pressure to ask Speaker to step down as Chairman

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Dayasiri questions legitimacy of appointments made by Council

The Constitutional Council (CC) should ask its head, Speaker Dr. Jagath Wickramaratne, to step down temporarily pending an investigation by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) into a complaint lodged by sacked Deputy Secretary General of Parliament Chaminda Kularatne, SJB MP Dayasiri Jayasekera has said.

Former Minister Jayasekera said so in response to The Island queries pertaining to Kularatne’s recent complaint to the CIABOC.

Jayasekera pointed out that the CC, which is responsible for key appointments, couldn’t afford to have a person under CIABOC investigation as its head. “We have never experienced a similar situation since the establishment of the CC in 2000,” the Kurunegala District lawmaker said.

Parliament introduced CC under the 17th Amendment to the Constitution. It was abolished in 2010, reinstated in 2015 through the 19th Amendment, then replaced by a Parliamentary Council in 2020, and reintroduced via the 21st Amendment in October 2022.

MP Jayasekera said that the NPP government had turned a blind eye to his recent request made in Parliament for the Speaker to step down. He said that subsequently he had discussed the issue with other MPs and they were of the view that Dr. Wickramaratne’s continuation as the Chairman of the CC undermined the integrity of the council.

A parliamentary committee headed by Dr. Wickramaratne sacked Kularatne on January 23 over alleged irregularities pertaining to his appointment as Deputy Secretary General of Parliament and Chief of Staff. Kularatne lodged the complaint with the CIABOC on 2 February.

Austin Fernando, Professor Wasantha Seneviratne and Ranjith Ariyaratne were appointed as non-Members of Parliament to the CC on 23 January, the day Parliament sacked Kularatne.

MP Jayasekera said that the CC should discuss the issue with the Speaker. Political parties represented in parliament should intervene to ensure that the controversy over the Speaker’s conduct didn’t undermine the apex body.

The CC consists of Prime Minister Dr.  Harini Amarasuriya (Ex-officio), Speaker Dr. Jagath Wickramaratne (Ex-officio), Leader of the Opposition Sajith Premadasa (Ex-officio), one MP appointed by the President (Bimal Rathnayake), five persons appointed by the President, upon being nominated as follows: one MP nominated by agreement of the majority of the Members of Parliament representing the Government (Aboobucker Athambawa, M.P), one MP nominated by agreement of the majority of the MPs of the political party or independent group to which the Leader of the Opposition belongs—Ajith P. Perera—and three persons nominated by the Speaker by agreement of the Prime Minister and the Leader of the Opposition—Austin Fernando, Professor Wasantha Seneviratne and Ranjith Ariyaratne—and one MP nominated by agreement of the MPs other than those representing the Government and those belonging to the political party or independent group to which the Leader of the Opposition belongs, and appointed by the President (Sivagnanam Shritharan, M.P).

The CC recommend nominations to the President for the appointment of Chairpersons and Members of Election Commission, Public Service Commission, National Police Commission, Audit Service Commission, Human Rights Commission of Sri Lanka, Commission to Investigate Allegations of Bribery or Corruption, Finance Commission, Delimitation Commission and National Procurement Commission.

Jayasekera asked how Dr. Wickramaratne could continue as CC head as appointments to CIABOC, too, are made by the 10-member body.

The CC also approve/disapprove recommendations by the President for the appointment Chief Justice and the Judges of the Supreme Court, President and the Judges of the Court of Appeal, Members of the Judicial Service Commission, other than the Chairman, Attorney-General, Governor of the Central Bank of Sri Lanka, Auditor-General, Inspector-General of Police, Parliamentary Commissioner for Administration (Ombudsman) and Secretary General of Parliament.

MP Jayasekera said that it would be really interesting to see the response of the newly appointed civil society members to the developing situation. The SJBer pointed out that the recent appointment of Samudika Jayaratne, a Senior Deputy Auditor General as the Auditor General was made after Kularatne moved the CIABOC against the Speaker.

The JVP and NPP, having preached other political parties of transparency, couldn’t pretend the Speaker’s issue was not serious. Dr. Wickramaratne was appointed Speaker in Dec 2024 after Asoka Ranwala had to step down after being exposed for making false higher education qualifications.

by Shamindra Ferdinando

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Auditor General urged to probe coal scam

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The Electricity Consumers’ Association (ECA) Friday (6) called on newly appointed Auditor General Samudika Jayarathne to begin her tenure by launching an investigation into the controversial coal procurement deal, which has drawn widespread public criticism.

Addressing a media briefing in Marandagahamula, Gampaha, ECA Secretary, Sanjeewa Dhammika, said the probe should be conducted independently. The appointment of a new Auditor General, following a vacancy of nearly six to seven months, was a crucial step in restoring the effectiveness of the state audit system, he said, extending congratulations to Jayarathne.

Dhammika urged the Auditor General to carry out a swift, independent investigation into the questionable coal procurement deals, alleging that they had caused significant economic and environmental harm to the country.

He called for the findings of such an investigation to be disclosed to the public as a priority.

He also called for an immediate audit of Lanka Transformer Ltd, which has faced severe criticism from the Committee on Public Enterprises (COPE). Dhammika said the audit should reveal details of alleged irregularities, identify those responsible, and disclose any misuse of public funds.

Noting that the government held a substantial share in Lanka Transformer Ltd, he stressed that the matter constituted a direct responsibility of the State.

“The audit system should not function to provide political protection, but to safeguard public funds,” Dhammika said, adding that the Association expected the new Auditor General to uphold this principle.

By Anuradha Hiripitiyage

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First-ever monkey holding centre to be set up in Matale

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A 150-hectare site near the Kalu Ganga Reservoir in Matale District has been earmarked for Sri Lanka’s first-ever holding centre for Toque Macaques, the Department of Wildlife Conservation (DWC) announced.

The centre will feature water, food, and security facilities, providing a safe environment to manage macaques that cause damage in nearby communities. The Matale District Development Committee has approved the project, following a recommendation from the DWC.

Wildlife Range Officer Chamath Lakshman Perera told the Committee that similar holding centres operate in several countries, including Malaysia. A total of Rs. 283.87 million has been allocated for the project.

Under the plan, macaques causing destruction will be captured and relocated to the centre. Population control measures will include fitting loops on female monkeys to prevent breeding. The facility will be secured to ensure the animals cannot escape back into the wild.

Officials said the site has sufficient natural food sources, but additional supplies will be provided if necessary. Each macaque is expected to require around 70 grams of food per day.

The project aims to balance wildlife conservation with community protection, offering a model for managing human-macaque conflicts in the country, Perera said.

by Nimal Gunathilake

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