News
Talks planned for India to restructure $1.3-billion credit line to Lanka
BY S VENKAT NARAYAN
Our Special Correspondent
NEW DELHI, May 14: India will hold talks with Sri Lanka for restructuring the island nation’s $ 1.3 billion Line of Credit (LoC), seeking to assist its southern neighbour battling a severe economic crisis.
The Indian government backs the LoC from Export Import Bank (EXIM Bank).
The exact terms of the loan will be finalized in talks that the Indian government will conduct and the EXIM Bank will participate in.
Repayments on credit have been done till the end of March 2022. The restructuring is likely to involve deferment on repayment principal, said sources in EXIM Bank.
In February 2022, India’s EXIM Bank and Sri Lanka’s government signed a $500-million LoC agreement to help Colombo to cope with its current fuel shortages.
India said this week it is “fully supportive” of Sri Lanka’s democracy, stability and economic recovery, responding after that country’s Prime Minister Mahinda Rajapaksa quit amid massive protests against the raging economic crisis.
On April 12, the Sri Lankan government said it will suspend debt servicing on its foreign-currency obligations amid steeply rising external funding pressures.
Standard & Poor’s has downgraded Sri Lanka’s long-term foreign currency sovereign credit rating to ‘SD’ (selective default) from ‘CC’.
Meanwhile, EXIM Bank has posted a 190.5 per cent increase in net profit at INR7.38 billion on FY22 from INR2.54 billion in FY21. Its loan book grew by 13.26 per cent Year on Year to INR1.17 trillion at the end of March 2022. The capital adequacy improved to 30.49 per cent in March 2022 from 25.89 per cent a year ago.
EXIM Bank Managing Director Harsha Bangari said the bank raised foreign currency resources aggregating $2.05 billion and rupee resources aggregating INR190.46 billion in FY22.
In FY23, the institution plans to raise about $3 billion, depending on the market conditions. About $1-1.5 billion will be raised by issuing long-term securities and balance through short-term loans. The domestic borrowings will be around INR200 billion in 2022-23, Bangari said.
News
DS driver remanded for selling donated water
A driver attached to the Kandy Four Gravets and Gangawata Korale Divisional Secretariat has been arrested for allegedly selling donated drinking water that was intended for distribution to residents displaced by the recent disaster in the Kandy District.
The suspect, identified as H.P.G.K. Lal Hapukumbura, was produced before the Kandy Chief Magistrate, who ordered that he be remanded until 09 December.
He was brought before court by Police Sergeant Jayathilaka, under the supervision of Chief Inspector Rasika Sampath Pathirana, HQI of the Kandy Police, and on the instructions of Chief Inspector Rohana Karunarathna, OIC of the Minor Complaints Division.
By Shantha Kelum Samaranayake
News
Switzerland sends WASH relief support to Lanka
Switzerland has delivered a consignment of essential WASH (Water, Sanitation and Hygiene) relief equipment and personnel to support Sri Lanka’s disaster response efforts following recent extreme weather conditions, President’s Media Division (PMD) said in a release,
The cargo, which arrived at the Bandaranaike International Airport on Saturday (06), was officially handed over by a visiting Swiss WASH Mission delegation led by Mr Martin Bölsterli, Team Leader of the WASH Mission, and Ms Yvonne Josy Müller, Senior Coordinator of the Mission.
The consignment includes water purifiers, designed to ensure safe drinking water in disaster-affected communities, along with the deployment of WASH technical personnel to support implementation on the ground.
Officials said the Swiss assistance will help strengthen access to clean water in areas where supply systems have been damaged and will support humanitarian agencies working to restore essential services.
The arrival of the Swiss WASH Mission forms part of continued international support being extended to Sri Lanka as the country works to stabilise conditions in communities affected by the disaster.
News
COPF clears Strategic Development Bill and six Gazettes
The Committee on Public Finance (COPF) has approved the Strategic Development Project (Amendment) Bill along with six Gazette Extraordinary notifications, following a meeting held in Parliament last week, chaired by SJB MP Dr. Harsha de Silva.
After extensive deliberations, the Committee gave the green light to the Strategic Development Project (Amendment) Bill, marking a key step in advancing ongoing development initiatives.
In addition, approval was granted for regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969 (Extraordinary Gazette No. 2459/46) and the Value Added Tax Act, No. 14 of 2002 (Extraordinary Gazette No. 2461/43).
The Committee also approved Resolutions under the Revenue Protection Act, No. 19 of 1962, published in Gazette Extraordinary No. 2457/06 and No. 2461/40, as well as an Order under Section 3 of the Ports and Airports Development Levy Act, No. 18 of 2011 (Extraordinary Gazette No. 2461/44). Approval was additionally granted for an Order under Sections 2 and 3 of the Special Commodity Tax Act, No. 48 of 2007 (Extraordinary Gazette No. 2457/05).
The meeting saw participation from Deputy Ministers Chathuranga Abeysinghe, Nishantha Jayaweera, and MP Ravi Karunanayake, among others, as the Committee advanced its review of key financial and regulatory measures.
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