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Yellen calls on China for specific debt assurances for Lanka

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ECONOMYNEXT –US Treasury Secretary has called for specific and credible financing assurances for Sri Lanka and said about “55 percent of low income countries are at close to or in debt distress.”

“I will continue to push for all bilateral official creditors, including China, to participate in meaningful debt treatments for developing countries and emerging markets in distress,” Yellen said at a meeting of to G20 officials in India.

“Most urgent is the need to provide debt treatment to Zambia, and to commit to specific and credible financing assurances for Sri Lanka.

“Later this week, I am also looking forward to robust discussions about the Common Framework process to help countries like Ghana. I will also be discussing international coordination on debt restructuring for middle-income countries.”

China has offered a two year moratorium to Sri Lanka and said it will enter into talks to re-structure debt without giving specific assurances that debt will be re-structured along the limits set by an IMF analysis.

Many countries which have bad central banks with historical depreciating currencies due to conflicting money and exchange policies are now in debt distress.

“The IMF estimates that around 55 percent of low-income countries are close to or in debt distress,” Yellen said.

After the Great Recession in particular massive liquidity made it easier for many countries with bad central banks to borrow dollar denominated debt heavily in commercial markets, analysts say.

Classical economists refer to the phenomenon, which is a consequence of inflationary policy, as mal-investing.

The first wave of defaulting Latin American countries came in the early 1980s as the Fed tightened policy and co-called BBC policies (now called exchange rate as the first line of defence) destroyed currency pegs as intermediate regime countries tried to maintain fixed policy rates.

In the 1970s amid bad Fed policy which pushed up oil prices, US banks also re-cycled so-called ‘petro collars’ to Latin American nations as bondholders re-cycled abundant liquidity to third world nations which had monetary instability historically in recent yearsm

China also shifted some of its reserves from US Treasury bills to policy banks and gave loans to countries with a history of monetary instability amid questionable feasibility of some projects.In the case of Sri Lanka however China has funded a coal power plant which said to be the best and most high return project the country has embarked on since the 1980s hydro-electric dams.



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INS Udaygiri departs Colombo concluding formal visit

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The Indian Naval Ship (INS) Udaygiri departed the Port of Colombo today, 11 September 2026, following the successful completion of a four day official visit.

On her departure, the Sri Lanka Navy bade farewell to the ship in accordance with time-honoured naval traditions.

During the visit, naval personnel from both navies engaged in joint initiatives to strengthen bilateral ties. These included a friendly volleyball match, a beach cleanup along the Galle Face
promenade, and a training exercise on Visit, Board, Search, and Seizure (VBSS) conducted by the Sri Lanka Navy Special Boat Squadron (SBS).

As part of the visit, the Indian Navy handed over a consignment of spares and supplies to the Sri Lanka Navy. Visiting crew members also toured key tourist attractions in and around Colombo.

Official interactions of this nature aim to enhance cooperation and knowledge-sharing between the two maritime forces, supporting joint responses to evolving regional maritime challenges.

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President meets representatives from Sri Lanka Scout Association

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A meeting between President Anura Kumara Dissanayake and representatives of the Sri Lanka Scout Association was held at the Presidential Secretariat on Thursday (10)  afternoon .

The President was briefed on the 11th National Scout Jamboree, scheduled to be held in Sri Lanka in January 2027, as well as the current status and progress of its organisational arrangements.

The official logo of the National Scout Jamboree was also presented to the President and officially unveiled on the occasion.

Views were also exchanged on the programmes currently being implemented by the Sri Lanka Scout Association and its future plans.

President Anura Kumara Dissanayake emphasised the importance of expanding the Scout Movement to more schools and the contribution that the Scout Movement can make to the Government’s programmes to combat drugs.

President’s Senior Additional Secretary Roshan Gamage; Chief Scout Commissioner, Attorney-at-Law Manoj Nanayakkara; President of the Sri Lanka Scout Association Ransiri Perera; Deputy Chief Scout Commissioner (Acting) Kapila Perera; Chairman of the Executive Committee Kamalnath Jinadasa; and Jamboree Co-Organising Commissioner, Engineer Amil Abeysundara, were among the senior representatives of the Sri Lanka Scout Association who attended the occasion.

[President’s Media Division]

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Meeting between Catholic religious leaders and President

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A meeting between President Anura Kumara Dissanayake and Catholic religious leaders, led by His Eminence Malcolm Cardinal Ranjith, Archbishop of Colombo, was held at the Presidential Secretariat on Thursday (10).

Special attention was given to the Government’s programme to strengthen coexistence, peace and reconciliation among all communities in the country and to ensure national unity by preventing any form of racist or religiously motivated hate activity.

The progress of investigations into the Easter Sunday attacks was also discussed.

Lengthy discussions were held on measures that could be taken to prevent environmental damage and destruction affecting the lives of the people.

The Catholic religious leaders commended the measures taken by the Government to safeguard trust among all communities and expressed their fullest support for these efforts.

The issues faced by Catholic communities, including infrastructure development in areas where Catholic people reside, as well as measures that should be taken to address these issues, were also discussed at length.

Rev. Fr. Cyril Gamini, Rev. Fr. Julian Patrick and other priests, as well as Deputy Minister of Religious and Cultural Affairs Muneer Mulaffer, President’s Senior Additional Secretary Roshan Gamage and others, were also present at the meeting.

President’s Media Division (PMD)

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