News
US to move $3.5bn in Afghan assets to Swiss-based trust
The United States says it will transfer $3.5bn in Afghan central bank assets – part of the reserves seized after the Taliban took power in August last year – into a new Swiss-based trust fund.The new Afghan Fund, managed by an international board of trustees, and shielded from the Taliban, could pay for critical imports, such as electricity, cover debt payments to international financial institutions, and fund the printing of new currency.
“The Afghan Fund will protect, preserve and make targeted disbursements of that $3.5 billion to help provide greater stability to the Afghan economy,” the US Treasury said in a statement on Wednesday, according to the Reuters news agency.
The creation of the new trust fund comes after months of talks between US President Joe Biden’s administration, Switzerland, other parties and the Taliban, who demand the return of billions of dollars in Afghan central bank assets held in the US and elsewhere.
There was no immediate comment by the Taliban. In June, a Taliban government source, speaking on condition of anonymity, told Reuters that while the group did not reject the concept of a trust fund, they opposed third-party control of the fund that would hold and disburse returned reserves.US officials said no money would go to the Afghan central bank, known as DAB, until it is “free of political interference” – diplomatic parlance for replacing the bank’s top Taliban officials, two of whom are under US and United Nations sanctions, with banking professionals – and anti-money laundering safeguards are instituted.
“Until these conditions are met, sending assets to DAB would place them at unacceptable risk and jeopardize them as a source of support for the Afghan people,” US Deputy Treasury Secretary Wally Ademeyo said in a letter to the central bank’s Supreme Council seen by Reuters.
The new fund is housed in the Bank for International Settlements (BIS), which provides financial services to central banks. In a statement on Wednesday, BIS said it was “establishing a customer relationship” with the new fund.
“The BIS’ role is limited to providing banking services to and executing the instructions of the Board of Trustees of the Fund without involvement in the Fund’s governance or decision making. The BIS will comply with all applicable sanctions and regulations,” it added.
It will not resolve serious problems driving dire economic and humanitarian crises threatening to worsen as winter approaches. Nearly half of Afghanistan’s 40 million people face “acute hunger,” according to the United Nations.US officials said the fund will be overseen by a board comprising a US government representative; a Swiss government representative; Anwar-ul-haq Ahady; a former Afghan central bank chief and former finance minister; and Shah Mehrabi, a US academic who remains on the DAB Supreme Council.
The Taliban’s biggest fiscal challenge is developing new revenues to compensate for financial aid that provided up to 75 percent of government spending that the US and other donors ended after the Taliban takeover.The economic woes have also been driven by decades of war, drought, the COVID-19 pandemic, endemic corruption and a cut-off of the central bank from the international banking system.
US President Joe Biden, in February sequestered “for the benefit of the Afghan people” the $3.5bn in DAB assets to be transferred into the new trust fund.The other $3.5bn is being contested in lawsuits against the Taliban stemming from the September 11, 2001 attacks on the US. Courts could decide to release that money, which could be deposited in the new trust fund.Another approximately $2bn in Afghan central bank assets held in European and Emirati banks also could end up in the fund. Source: Al Jazeera
News
Probe into Chinese exit from Cable Car Project
Environment Minister Dammika Patabedi said yesterday he had ordered an inquiry into the withdrawal of China-based Amber Adventures (Private) Ltd., from the Ambuluwawa Cable Car Project.Addressing the media, the Minister said the Environment Ministry had no direct agreement with the company, as the project was under the purview of the Board of Investment (BOI).
He said construction activities within the Ambuluwawa Environmental Zone had been suspended following complaints from environmental organisations in the aftermath of Cyclone Ditwah. All constructions in high-risk areas, he said, had been halted pending clearance by the National Building Research Organisation (NBRO).
According to the Minister, complaints had been received that construction at Ambuluwawa was continuing without NBRO clearance.
In response, the Ministry instructed the Central Environmental Authority (CEA) to conduct an investigation and thereafter construction activities were suspended pending a technical assessment by experts.
The Ministry of Environment subsequently ordered the immediate suspension of all construction activities within the Ambuluwawa Environmental Zone until the assessment was completed, he said, adding that work could resume if expert evaluations cleared the project.
Following the suspension, Amber Adventures (Private) Ltd,, described as the country’s first cable car venture, formally withdrew from the project, citing what it termed “regulatory obstruction and arbitrary state action.”
The company, a major Chinese investor in the project, proposed as Sri Lanka’s first cable car initiative with both Chinese and American investment, officially informed the BOI of its decision on Wednesday (14). In a letter to the BOI, the company said it had obtained all required permits and approvals in line with BOI procedures but faced repeated disruptions that resulted in significant financial losses.
Company Director Yuan Yuping warned that legal action would be pursued at the International Court of Arbitration to recover losses incurred due to the suspension of the project, citing continuous interruptions and government decisions as the cause.
Meanwhile, the Ambuluwawa Trust Board said the withdrawal of investors from the project was a major loss to the country, noting that it was regrettable that decisions had been taken without proper investigation, based on allegations by parties lacking a clear understanding of the facts.
It warned that halting a large-scale project of that nature would result in the loss of direct and indirect employment opportunities, as well as income sources for communities in the surrounding areas.
By Chaminda Silva and SK Samaranayake ✍️
News
Buddha statue issue: monk refuses meals in remand prison
Balangoda Kassapa Thero, held in Trincomalee remand prison over alleged violations of the Coastal Conservation Act, reportedly refused meals yesterday (15).
Prison authorities, however, said it could not be confirmed whether the monk’s action amounted to a hunger strike. Prison Media Spokesperson A. C. Gajanayake added that an official statement on the matter would be issued today (16).
The monk and eight others were remanded until 19 Jan by the Trincomalee Magistrate’s Court over allegations of unauthorised construction of a shelter to place a Buddha statue at the Sri Sambuddha Jayanthi Bodhiraj Viharaya. Prison sources said Thero had also declined food brought from outside.
The case follows reports to the court by the Trincomalee Harbour Police that unauthorised constructions had been carried out, despite instructions from the Court of Appeal to resolve the dispute peacefully.
by Chaminda Silva ✍️
News
‘Lanka faces food crisis’ :FAO calls for $16.5m aid
The Food and Agriculture Organization of the United Nations (FAO) Headquarters in Rome issued an appeal calling for international assistance of USD 16.5 million to support the early recovery of livelihoods and food security for farming, livestock-keeping and fishing communities affected by Cyclone Ditwah in Sri Lanka, FAO said yesterday.
Cyclone Ditwah represents one of the most severe climate shocks the country has faced in decades, affecting all 25 districts and disrupting the lives and livelihoods of more than 2.2 million people. Over 1.1 million people are now in urgent need of food security, agricultural and nutrition assistance, at a time when vulnerabilities were already heightened by prolonged economic pressures.
The cyclone struck at the onset of the critical Maha 2025/26 cultivation season, causing widespread damage to agriculture, livestock and fisheries. Floods inundated more than 129 000 hectares of agricultural land, affecting over 227 000 farming households. Standing water, debris, siltation and damaged irrigation systems are delaying replanting, while shortages of seeds, fertilizers and access to machinery threaten to result in irreversible production losses if immediate support is not provided.
Livestock and fisheries losses have further compounded the crisis. More than 37 000 cattle and buffaloes, nearly 16 000 goats and sheep, and 475 000 poultry have been lost, while damage to fisheries and aquaculture is estimated at USD 66–69 million, undermining both food availability and household incomes.
“This appeal focuses on early recovery interventions that are urgently needed to stabilize livelihoods and safeguard food production.,” said Vimlendra Sharan, FAO Representative for Sri Lanka and the Maldives. “While the overall requirements for the agrifood sector to fully rebound are substantially higher, immediate early recovery support is critical to prevent long-term losses, deeper food insecurity and increased reliance on food assistance.”
Issued by FAO Headquarters in Rome, the appeal targets 256 000 households (approximately 1.03 million people) across the Central, Eastern, North Central, North Western, Northern, Uva and Western Provinces. The USD 16.5 million requirement reflects priority early recovery actions, designed to rapidly restore productive capacity and protect livelihoods.
FAO’s planned interventions include:
Restoring crop production by providing seeds, fertilizers and essential agricultural inputs to smallholder farmers;
Safeguarding livestock assets through emergency animal health services, vaccines, veterinary kits and poultry restocking;
Supporting fisheries and aquaculture livelihoods through the repair or replacement of damaged boats and fishing gear; and
Providing cash-based assistance, including cash-for-work, to meet immediate needs, support livelihood restoration and enable debris clearance where markets are functioning.
FAO is working closely with the Government of Sri Lanka, particularly the Ministry of Agriculture, Livestock, Land and Irrigation and the Ministry of Fisheries, Aquatic and Ocean Resources. FAO also co-leads the Food Security and Livelihoods Sector alongside the World Food Programme and coordinates its response with the Sri Lanka Humanitarian Priorities Plan – Cyclone Ditwah.
To date, USD 400 000 has been received, leaving a 97.6 percent funding gap. Without urgent donor support, hundreds of thousands of households risk missing an entire cultivation season, with lasting consequences for food security, nutrition and rural resilience.
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