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Cabinet approves issuance of new bonds to replace existing ISBs

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Professor Jayantha

The Cabinet of Ministers has approved the issuance of new bonds to replace existing International Sovereign Bonds (ISBs) held by local and international bondholders, senior consultant on Economic Affairs and Finance to President Anura Kumara Dissanayake and Minister of Labour, Professor Anil Jayantha Fernando, announced on Tuesday (26).

Speaking at the post-Cabinet press conference, Professor Fernando said Sri Lanka had reached an agreement with the Ad Hoc Committee of Bondholders and the local consortium of Sri Lankan Bondholders in September 2024.

It had been decided to issue new bonds following an analysis by the Sri Lankan government’s financial advisors, assessing the impact on the economy, the composition of the country’s international sovereign debt, and settlements. That had been done in accordance with the provisions of the International Monetary Fund’s (IMF) Comprehensive Credit Facility and the debt sustainability parameters outlined by the IMF’s Debt Sustainability Analysis (DSA), he said.

Prof. Fernando also noted that the government had reached a final agreement on debt restructuring with members of the Official Creditor Committee (OCC) of major bilateral creditors in June 2024.

According to the IMF’s DSA, Sri Lanka was required to reduce its debt-to-GDP ratio from 128% in 2022 to 95% by 2032. (RK)



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‘Compensation should not exceed stipulated maximum’

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Dr. Mahanamahewa

Aragalaya violence:

Given that Sri Lankan law stipulates that the maximum compensation payable for a completely destroyed house is Rs. 2.5 million, the government must recover any excess payments made to MPs who have lost their properties in May 2022, legal expert Dr. Pratibha Mahanamahewa has said.

Dr. Mahanamahewa said compensation to property damage is paid under the current disaster relief policy, which operates under the Disaster Management Act, enacted in 2005.

Under this policy, the government could pay only Rs. 2.5 million for a destroyed house, he said, calling for an investigation to ascertain how large sums of money had been disbursed to compensate parliamentarians whose homes were set on fire during the protests.

Dr. Mahanamahewa said that the previous government had based compensation on recommendations made by a committee appointed by the then Minister of Public Administration. He stressed the need to scrutinise the criteria and basis on which this Committee made its recommendations. He said that many of the compensated homes had fire insurance policies, and the respective insurance companies had already paid compensation to the affected individuals.

Therefore, he proposed that the excess payments be recovered and returned to the Treasury through a proper mechanism. (RK)

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Karu wants NPP to adopt Yahapalana constitutional proposals

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… warns AKD’s reputation would be tarnished unless he keeps his promise

By Shamindra Ferdinando

Former Speaker Karu Jayasuriya has, in his current capacity as Chairman of the National Movement for Social Justice, suggested that the NPP government examine the viability of constitutional proposals unveiled during the Yahapalana government.

Declaring that most of the political parties represented in the 8th Parliament appreciated the constitutional proposals presented in the form of a report prepared by the Panel of Experts for the Steering Committee on drafting a new Constitution, Jayasuriya, emphasised the important role played by Lal Wijenayake who served as the Chairman of the Public Representations

Committee on Constitutional Reform.

In a statement to the media, the NMSJ chief pointed out that Wijenayake represented the executive committee of the NPP. Wijenayaka’s committee consisted of S. Winston Pathiraja (Secretary), Faisz Musthapha, Prof. A. M. Navaratna Bandara, Prof. M. L. A. Cader, N. Selvakkumaran, S. Thavarajah, Kushan D’Alwis, Dr. Harini Amarasuriya, Dr. Kumudu Kusum Kumara, Sunil Jayaratne, Dr. Upul Abeyratne, Themiya L. B. Hurulle, S. Vijesandiran, M. Y. M. Faiz, Mrs. M. K. Nadeeka Damayanthi, Ms.Kanthie Ranasinghe, S. C. C. Elankovan, and Sirimasiri Hapuarachchiall

Karunaratne Jayasuriya, the former parliamentarian, served as the Speaker of the Yahapalana Parliament.

Assuring the NMSJ’s support for the NPP government in this regard, the one-time UNP Deputy Leader claimed that the NPP with a 2/3 majority, the main Opposition SJB, as well as other political parties represented in Parliament, would receive the public support to introduce a new Constitution.

The NMSJ leader said they expected President Anura Kumara Dissanayake and his government would pay required attention to the urgent need to introduce a new Constitution.

The NMSJ warned President Dissanayake that the failure on his part to enact a new Constitution within a specified time period would tarnish his image as he promised to do so during the last election campaign.Wijenayaka’s effort had the backing of the UNP (SJB was part of the UNP at that time) and the SLFP, and a section of the dissident Joint Opposition.

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Retd. SC Justice Aluwihare leads anti-money laundering drive

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Aluwihare

Retired Judge of the Supreme Court Justice Buwaneka Aluwihare, PC, has been appointed Chairman of the high level task force on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).

The Central Bank of Sri Lanka has issued the following statement that dealt with the new mechanism: “Sri Lanka’s third Mutual Evaluation on the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework, coordinated by the Asia Pacific Group on Money Laundering (APG), is set to begin in the near future. During this upcoming Mutual Evaluation, Sri Lanka is required to demonstrate Technical Compliance with the 40 Recommendations of the Financial Action Task Force (the global policy setter on AML/CFT) and their effective implementation through 11 Immediate Outcomes.

For effective implementation of the Action Plans, approved by the Cabinet of Ministers, outlining the actions to rectify the remaining gaps in the AML/CFT framework have been communicated to the relevant stakeholder institutions, namely, the Attorney General’s Department, Sri Lanka Police, Sri Lanka Customs, Commission to Investigate Allegations of Bribery or Corruption, Ministry of Justice, Ministry of Defence, Ministry of Foreign Affairs, Ministry of Finance, Department of the Registrar of Companies, Inland Revenue Department, Department of Excise, Legal Draftsman’s Department, Registrar General’s Department, Securities and Exchange Commission of Sri Lanka, Insurance Regulatory Commission of Sri Lanka, Construction Industry Development Authority, National Gem and Jewellery Authority, National Secretariat for Non-Governmental Organizations and Department of Import and Export Control. An AML/CFT Task Force was initially established in 2023 with the concurrence of the Cabinet-of-Ministers to monitor and follow-up the implementation of the aforesaid Institution wise Action Plans.

The AML/CFT Task Force has now been reconstituted with high-level ministerial representation under the directions of the President ensuring government’s support for this process and in alignment with its efforts to fight corruption in Sri Lanka. The members of this high-level AML/CFT Task Force are as follows:

(i). Justice Buwaneka Aluwihare, PC – Retired Judge of the Supreme Court (Chairman), (ii). Harshana Nanayakkara – Minister of Justice, (iii). (Prof.) Anil Jayantha Fernando – Minister of Labour and Deputy Minister of Economic Development, (iv). (Dr.) Harshana Suriyapperuma – Deputy Minister of Finance and Planning, (v). Nelumani Daulagala – Senior Deputy Governor, Central Bank of Sri Lanka, and (vi). A.K.D.D.D Arandara – Additional Director General, Ministry of Finance, Planning and Economic Development

At its first meeting on 29.01.2025, the Chairman and the members of the Task Force highlighted the strategic importance of the Mutual Evaluation and requested the full cooperation and coordinated assistance of each stakeholder institution to successfully face this crucial assessment.”

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