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China asked to share debt terms to facilitate overall process

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Sri Lanka wants China to share with other creditors the terms of its recent $4.2 billion bilateral debt deal, a step needed to help the country speed up the process of restoring its finances over a year after it defaulted.

Sharing the information would ensure transparency and assure other bilateral creditors that they’re getting a comparable deal, news agencies have quoted Central Bank Governor Dr. Nandalal Weerasinghe, as sayng at a panel discussion on Friday.

The request from Sri Lanka comes as it seeks to finalise a deal with its official creditor committee, co-led by Japan, India and the Paris Club, an informal and influential group of Western lenders. The South Asia nation defaulted in May 2022 and owes more than $12 billion in overseas bonds, according to the government’s quarterly debt bulletin.

Sri Lanka’s debt restructuring is among a few test cases of the IMF-led efforts to develop new guidelines among rich and poor countries to manage defaults. That’s mainly driven by China’s limited experience restructuring distressed loans after its rise over the past decade to become the biggest bilateral lender to emerging markets, as well as a bigger role played by private creditors.

Sri Lanka is asking China to share the deal terms “with all other creditors” as soon as possible to “make it more transparent and ensure comparability so that we can make progress,” Weerasinghe said. “Because this is a bilateral agreement, obviously, we need to have a consensus from the other party to share that information.”

Private creditors are seeking a separate deal. An ad hoc group of bondholders, organised by advisers including Rothschild & Co., recently submitted a proposal to Sri Lanka that includes taking a 20% haircut and issuance of new debt, including a so-called macro-linked bond.

Incorporating China, along with other rising bilateral creditors, such as India and Saudi Arabia, into the established order of the Paris Club, has been a lengthy process and a main focus of the International Monetary Fund’s annual meetings this week in Morocco.

Beijing made an unexpected announcement earlier this week of a deal between Sri Lanka and the Export-Import Bank of China, which has increased confusion over the process. The IMF and other creditors also weren’t aware of the development, and Weerasinghe on Friday said that the announcement was “a bit of a surprise” to the Sri Lanka government as well.

The issue will likely be in focus when Sri Lanka’s President Ranil Wickremesinghe travels to China to participate in the Belt and Road Forum in Beijing. About 40% of its bilateral debt is owed to China and 16% to India, according to estimates from the IMF.

Separately, the IMF is assessing Sri Lanka’s progress toward meeting economic and reform targets under the nation’s $3 billion bailout package. A staff-level agreement is the first step needed in order for a second tranche of $334 million in loans.

Sri Lanka and the IMF are close to reaching such a staff-level agreement following talks in Morocco this week, according to people involved in the discussions, who asked not to be identified because the matter isn’t finalized yet.



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National Assessment and Policy Review: The impact of social media on children

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Deputy Minister of Digital Economy, Eranga Weeraratne, stated that the Ministry of Education, the Ministry of Women and Child Affairs and the Ministry of Digital Economy are planning to initiate a national assessment and policy review on the impact of social media on children.

The Deputy Minister emphasized that the initiative is expected to be advanced by giving due consideration to the insights of experts across all relevant fields, including child protection, education, health, mental health, cyber security, law and research, as well as by listening to the voices of civil society and youth.

Full statement made by Deputy Minister, Eranga Weeraratne.

“Many parents in Sri Lanka today face the challenge of understanding the impact of social media on their children and determining what measures they should take to ensure their safety. The solution is not to restrict children’s access to technology. Social media offers numerous benefits, including educational opportunities, the development of creative skills and improved communication. However, there is also a reality we must acknowledge. The online environment can often be unsafe, overwhelming and psychologically stressful for children. The resulting harm can negatively affect a child’s sleep, education, friendships and overall mental well-being. In some cases, excessive engagement with social media becomes difficult to control. Attempts to prevent such overuse may sometimes lead to conflicts, anger, or harsh disciplinary measures, which further impact learning and mental health. Consequently, children may experience stress, diminished self-confidence and emotional distress.

Online cyber bullying is another major concern. Additionally, children are often exposed to age-inappropriate content, including violent, sexual, or otherwise harmful material. There have been cases where children repeatedly engage with such harmful content, becoming increasingly absorbed in it. Some online games also present situations that encourage children to engage in disruptive or unsafe behaviour.

In extreme cases, such engagement has even led children to put their lives at risk. For this reason, ensuring the online safety of children has become a national priority in many countries. Our approach, likewise, must be guided by three fundamental principles.

First, the safety of children is paramount. This remains a non-negotiable policy of the government. Second, our actions must be based on evidence and research. We never proceed based on assumptions. Third, while safeguarding rights and privacy, our goal is to minimize excessive surveillance. Striking a balance between rights, safety and innovation is our primary objective.

Many countries around the world are already taking measures in this regard. It has become a timely necessity for us to carefully study these experiences, adapt them to our context and develop a comprehensive programme to protect our children. As a first step, we hope to initiate a national assessment and policy review on the impact of social media on children, in consultation with the Ministry of Education and the Ministry of Women and Child Affairs.”

Experts in fields such as child protection, education, health, mental health, cyber security, law and research, along with the voices of civil society and youth, must be engaged in this effort. This is not a challenge that the government can address alone. Parents, teachers and children themselves all need to participate collaboratively. Through this approach, we can create an environment where our children can make full use of technology safely and responsibly.

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Public officials must clearly understand public expectations against corruption and fraud – Secretary to the President

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In line with the Government’s programme to build a clean, transparent and corruption-free public service, a workshop to brief heads of 250 state institutions that have been instructed to establish Internal Affairs Units was held on Thursday  (29) at the auditorium of the Sri Lanka Foundation Institute, under the patronage of Secretary to the President, Dr. Nandika Sanath Kumanayake.

As the first phase of this programme, Internal Affairs Units were previously established in 106 state institutions and the relevant officers were trained accordingly. As part of the second phase, instructions have been issued to establish Internal Affairs Units in an additional 250 state institutions. Accordingly, this workshop was organised by Presidential Secretariat, with the assistance of the Clean Sri Lanka Programme.

Although Sri Lanka continues to maintain relatively high rankings in sectors such as education and healthcare, Secretary to the President, Dr. Nandika Sanath Kumanayake noted that the country is ranked 121st in the 2024 Corruption Perceptions Index, a position that could adversely affect its overall standing in other key sectors.

Addressing the gathering, the Secretary to the President stated that while the primary slogan of the recent public uprising was against the corrupt politics, the allegations were directed not only at corrupt politicians but also at corrupt public officials. He emphasised that the public uprising occurred at a time when the country had become economically bankrupt and its adverse consequences were being directly felt by the people.

He further observed that such public uprisings are not sudden events, but rather the culmination of a prolonged and systematic process, driven by public frustration and the erosion of trust in governance.

Further addressing the workshop, Secretary to the President emphasised that public uprisings should not be underestimated, noting that they represent a powerful expression of public will.

He stated that it is essential for public officials, as well as politicians, to have a clear understanding of public aspirations and public sentiment. As public servants, he stressed, there is an obligation to deliver a clean, transparent and accountable public service to the people.

Accordingly, he explained that a structured programme has been initiated to strengthen the integrity of public service delivery. The establishment of Internal Affairs Units forms a key component of this initiative, aimed at ensuring greater transparency and accountability within state institutions.

Dr. Kumanayake further noted that public officials must remain mindful of upholding ethical standards while performing their duties, as strengthening individual integrity can contribute to transforming the broader culture of corruption within the public sector.

He highlighted that Internal Affairs Units can be viewed both as a mechanism for fostering a culture of integrity within the public service and as a platform that enables the public to raise concerns regarding the conduct of public officials, thereby strengthening accountability and public trust.

At the event, Additional Secretary to the President, Ms. Chandima Wickramasinghe and Senior Lecturer at the University of Kelaniya,  Tharindu Dhananjaya Weerasinghe delivered keynote presentations.

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In order to safeguard the future of the country, a quality human resource must be developed. – Prime Minister

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Prime Minister Dr. Harini Amarasuriya stated that in order to ensure the economic, social, and cultural security of the country, it is essential to develop a quality human resource, and that education plays a vital role in achieving this goal.

The Prime Minister emphasized that the government is committed to bring about a transformation in the education sector, and that the government will continue to move forward by overcoming obstacles encountered along the way, guided by a clear vision and purpose.

The Prime Minister made these remarks while addressing the EDCS Sisu Nena Pranama scholarship award ceremony held on Saturday (31) at Temple Trees, organized to recognize the children of the members of the Education Co-operative Society (EDCS) who have been selected to state universities for the academic year2023/2024.

Elaborating further, the Prime Minister noted that this program, organized by the Education Service Employees–  Co-operative Thrift and Credit Society Ltd, is not merely about providing scholarships, but is an occasion that recognizes and appreciates the dedication of students and their parents who are preparing to shoulder the responsibility of the country’s future.

The Prime Minister also pointed out that it is a remarkable achievement that a society which began in 1930 with just 58 members and a membership fee of one rupee has today grown into the largest cooperative society in South Asia, with approximately 215,000 members.

The Prime Minister further highlighted how rapidly the world is changing, and the increasing necessity of developing human resources in the face of economic and environmental crises. She stressed that the education system must be transformed from the level of school education itself to align with the demands of the modern world, and that students entering universities should become leaders and active participants in this transformation.

Noting that out of nearly 300,000 students who enter primary education each year, only about 40,000 gain admission to universities, the Prime Minister urged students to make use of this opportunity for the development of the country.

Addressing the occasion, Deputy Minister of Labour and General Secretary of Ceylon Teachers Service Union,  Mahinda Jayasinghe, stated that due to corruption-free management, it was possible to increase the financial stability of the society from Rs. 1,200 million to Rs. 1,700 million within a short period of approximately nine months.

Under this year’s program, scholarships amount to over Rs. 13.7 million were awarded to 2,292 students who have been selected to state universities.

This scholarship program, which initiated in 1984 with 15 students and an initial fund of Rs. 3,500, has been conducted continuously for 41 years. At present, scholarships of up to a maximum of Rs. 75,000 per student are awarded, demonstrating the collective strength and solidarity of the teaching community.

The event was attended by the Chairman of the Education Development Cooperative Society,  Lal Kumara, the Western Province Director of Education, Darshani Iddamalgoda, along with other officials.

[Prime Minister’s Media Division]

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