Prez seeking unfair advantage, politicising bankruptcy – Prof. Peiris

By Shamindra Ferdinando

Top Opposition spokesman Prof. G. L. Peiris yesterday (01) asked the Wickremesinghe-Rajapaksa government to explain how it intended to work out an agreement with external private commercial creditors.

Of Sri Lanka’s total debt, 39.5 % were owed to external private commercial creditors, with ISBs amounting to a staggering 33.6%, the former External Affairs Minister said, urging the government to come clean on the issue at hand without seeking political advantage over the recently finalised agreement with Official Creditor Committee (OCC) USD 5.8 bn debt restructuring coupled with the USD 4.2 billion debt agreement with China.

Prof. Peiris dealt with the two agreements at his regular media briefing at the Nawala Office of the pro-SJB People’s Freedom Congress, a breakaway faction of the SLPP.

Sri Lanka, on June 26, finalised an agreement with OCC to restructure the debt owed to its bilateral lenders, including India and Japan, and signed a separate agreement with China for debt treatment. The agreement with China dealt with USD 4.2 bn.

Instead of seeking the best possible arrangements for the country, Prof. Peiris charged that the government sought to exploit the debt restructuring process to the advantage of Ranil Wickremesinghe’s presidential election campaign. The country could have had secured a better deal from OCC if the government didn’t pursue a political agenda, Prof. Peiris said, claiming that undue haste caused irreparable losses to Sri Lanka’s cause.

The Island sought an explanation from Prof. Peiris as to why he refrained from commenting on the debt treatment agreement with China’s Exim Bank. The academic said that the agreement with China was due to the absence of direct relevance to core of his presentation to the media.

Referring to the convening of Parliament at 9.30 am today (02) as requested by Prime Minister Dinesh Gunawardena, to debate the Resolution for the Implementation of External Debt Restructuring Agreements, Prof. Peiris said that at that time he addressed the media at 10 am on July 1 the Opposition was yet to receive the relevant agreements.

The Public Finance Committee and all members of Parliament should have had access to those documents the moment the Premier requested the Speaker to convene Parliament on July 2 at 9.30. The Parliament scheduled the debate for July 2 and 3.

Prof. Peiris said that at the end of the two-day debate, the vote on the Resolution for the Implementation of External Debt Restructuring Agreements was to be held.

However, soon after the end of the briefing, Prof. Peiris informed The Island that the government had cancelled the debate scheduled for today. The three-page resolution that had been distributed wouldn’t be moved and the day’s business would be restricted to President Wickremesinghe’s speech. Furthermore, the second day of the debate had been cancelled, Prof. Peiris said.

Prof. Peiris said that those who portrayed President Wickremesinghe as the man of the moment in the wake of finalisation of the agreement with OCC should keep in mind the total external debt had risen to USD 100.9 bn – 19.2% increase since he joined the government in May 2022.

The actual situation is quite serious and further deteriorating, Prof. Peiris said, urging the government to adopt a result-oriented genuine strategy instead of seeking petty political advantage ahead of the presidential election. The former Minister alleged that instead of taking the Opposition and public to confidence the government sought to manipulate the electorate to Wickremesinghe’s advantage.

Pointing out that Ghana, experiencing severe financial difficulties, had handled debt restructuring talks successfully with commercial lenders, Prof. Peiris said Sri Lanka failed pathetically to push for better conditions. Those who negotiated on behalf of Sri Lanka couldn’t achieve the desired results as they were forced to pursue a political agenda, the dissident SLPPer said.

The ex-Minister said that proper debate on debt restructuring deals could be held after the Opposition received the agreements signed in Paris.

By Rathindra Kuruwita

Sri Lanka Navy ship SLNS Vijayabahu yesterday brought ashore the sole survivor of a fishing craft crew who consumed an unknown liquid found in a bottle floating in the sea recently.

 Four others who were in the fishing vessel died by Sunday (June 30) and their boat is being towed back with the corpses.

The corpses of four fishermen remain on the Devon 5 fishing vessel they were travelling in. It will take at least two days for the vesselt to reach the country, Susantha Kahawatta, Director General of the Department of Fisheries and Aquatic Resources, said. “There is a technical issue, and another multi-day trawler is towing Dewon 5 back to Sri Lanka. Both are still about 200 nautical miles from Dondra. This multi-day trawler also belongs to the owner of Devon 5, and they are travelling at a speed of five nautical miles an hour. The bodies will be handed over to their families after medical examinations,” he said.

Six fishermen set off on the Dewon 5 multiday fishing trawler on 04 June from the Tangalle Fisheries Harbour. They found the bottle about 137 nautical miles off the Southern Coast and consumed its content, thinking that it was alcohol.

The Navy contacted a Singaporean merchant vessel that was in the vicinity and the Singaporeans took aboard two critically ill fishermen.  One more person died on Sunday while receiving emergency treatment on the Singaporean merchant vessel. SLNS Vijayabahu reached the Singaporean vessel by 7 pm on Sunday, Navy Spokesman Captain Gayan Wickramasuriya said.

“We brought the surviving fisherman, as well as the one who had died while receiving treatment. SLNS Vijayabahu reached Hambantota by 8 am on Monday and the condition of the surviving fisherman is stable. In fact, he walked from the ship to the ambulance,” he said.

Executive Director of Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI) Ambassador Ravinatha Aryasinha underscored the critical need for SAARC to maintain the discourse on South Asia in a meaningful manner.

During a roundtable discussion featuring Md. Golam Sarwar, SAARC Secretary General in Colombo recently hosted by the LKI during his inaugural visit to Sri Lanka, Amb. Aryasinha referred to the significant role played by the SAARC in its early years in bringing the region closer together, and that discussions held on the sidelines of SAARC meetings by the leaders had averted and even overcome bilateral challenges faced by member states, including those of Sri Lanka.

The discussion which focussed on ‘SAARC’s prospects for the future’ was attended by a group of eminent policymakers, scholars and stakeholders with past and current association with the developments of SAARC and South Asia.

Secretary General Sarwar commended Sri Lanka’s contribution towards regional cooperation, since it hosted the first-ever meeting of Foreign Secretaries of the member states in April 1981, which paved the way for the establishment of SAARC. Welcoming the opportunity of engaging with an eminent gathering, and acknowledging the challenges faced by the region and SAARC, Amb. Sarwar stressed the imperative for continued regional cooperation among South Asian nations, which is mutually beneficial, desirable and necessary to address the common problems, interests and aspirations of its people and elevate the quality of life. In this context, Amb. Sarwar noted that recently SAARC achieved a significant positive development with the successful convening of its Programme Committee Meeting at the Joint Secretary level on 6th and 7th March 2024 in Kathmandu, Nepal, attended by all member states except Afghanistan. Additionally, after extended intervals ranging from three to six years, SAARC successfully conducted joint governing board meetings of all seven regional centres and specialised boards, marking a notable advancement in regional cooperation efforts. Emphasising the importance of engaging and cooperating with SAARC’s nine observer states, he said programmes such as JENESYS, a partnership with Japan, is set to continue, having signed a new MoU with the Japanese Government. Sharing a positive outlook for SAARC, he expressed his confidence in South Asia’s ability to look beyond any existing challenges and reach a better, more integrated region in the future.

During the open discussion that followed based on Chatham House rules, it was recognised that regional cooperation in priority areas identified by member states and its programmes should be result-oriented and completed in a time-bound manner as there has been apparent deficiency in SAARC in terms of setting targets and implementing them. It was noted that despite their deep cultural, geographical, and historical connections, South Asia remains one of the least integrated regions in trade and connectivity compared to the world. Pooling resources and expertise together, member states would be able to navigate challenges and achieve sustainability. While regretting the absence of a SAARC summit meeting since 2014, the recent meetings of the SAARC Programming Committee and the other Governing Bodies was welcomed. Member states were encouraged to play a critical role to revive the SAARC, as the organization commemorates the 40th anniversary of its establishment next year.

Participants at the roundtable discussion included: Ambassador Esala Weerakoon, Former Secretary General of SAARC & Senior Additional Secretary to the President; Ambassador H.M.G.S. Palihakkara, Former Foreign Secretary ; Dharshana M. Perera, Senior Director General, Ministry of Foreign Affairs; T.P. Dharmasena, Director General, SAARC Division; Dr. D.K. Renuka Ekanayake, Director of the SAARC Cultural Centre; Ms. Irosha Cooray, Director (Education, Security and Culture), SAARC; Dr. Ranee Jayamaha, Executive Director (interim) Regional Centre for Strategic Studies (RCSS); Colonel Nalin Herath, Director General and Acting Director (Research), Institute of National Security Studies; Professor Maneesha S. Wanasinghe-Pasqual, Lecturer, University of Colombo; Dr. George Cooke; Dr. Jehan Perera, Executive Director, National Peace Council, R. Kumarihamy, Research Associate of Pathfinder Foundation; Hemal Prashantha, Senior Superintendent of Police.