News
China dithers over IMF’s Lanka debt plan, leaves Colombo in limbo – report
With China yet to support Sri Lanka debt restructuring, based on the debt sustainability analysis (DSA) of the IMF and Paris Club, time is running out on Colombo to secure a much-needed loan to revive the nation from the present economic crisis. Sri Lanka is seeking a USD 2.9 billion-dollar loan from the IMF, over four years, in eight installments, said a report published by the Hindustan Times yesterday.
It said: While India has agreed to support the Island nation on the basis of DSA, China still has differences over period of loan moratorium and debt restructuring with the IMF’s Executive Board, scheduled to meet next month. Under the circumstances, the IMF can either give the loan, on arrears, and then wait for China to come on board by IMF spring meeting, or later this year. Sri Lanka owes nearly USD 7.8 billion dollars to China which includes both bilateral lending from EXIM bank and commercial lending from Chinese Development Bank. Over the years, the Rajapaksas, with present President Ranil Wickremesinghe in cahoots, used these loans for sponsoring white elephant projects, like the Hambantota Port, Mattala Airport, Norocholai Power Plant and the Colombo Port City, as a result of which Beijing was given long term tax concessions and a free run of the Island nation.
While China was the favourite destination of the Sri Lankan political leadership, since the present millennium, Colombo chose to stay away from India, under pressure from Beijing, and has still not said yes to the Indian proposal to develop the Trincomalee Port. It is another matter that India provided some four billion dollars’ worth of aid, including food, petrol and medicine, to Sri Lanka, last year, to tide over its raging economic crisis.
With Chinese EXIM bank only willing to extend a two-year debt moratorium to Colombo, as of now, the Sri Lankan economy will hit rock bottom soon, or else IMF will have to give the loan, on arrears, with further stringent conditions. This not only means further political instability, in the Island nation, and the obvious beneficiary of this ferment will be the Communist parties of Sri Lanka, like the JVP.
The political climate of Sri Lanka will remain uncertain but the first indicator of the extent of ferment will be the local elections next month. Unless the mainstream parties are able to recover from the hit, President Wickremesinghe, who is the lone MP from his party, may not be eager to announce the general elections. With USD at an all-time high against the Sri Lankan rupee, and food inflation into double digits, things will get much worse for Sri Lanka before they turn for the better. And this could take at least a decade.
Public’s interest in the upcoming Provincial Council elections remains low, according to the People’s Action for Free and Fair Elections (PAFFREL).
PAFFREL Executive Director Rohana Hettiarachchi told The Island that there was an urgent need to encourage voter participation, noting that a higher voter turnout is essential for a functioning democracy.
Hettiarachchi said that the current level of political campaigning has been relatively subdued, with fewer aggressive or violent activities than seen in previous elections—a trend he described as a positive development.
He, however, stressed that local councils play a vital role in the lives of citizens, from birth- to death-related services, and also contribute to the legislative process. As such, voters must understand their importance and engage in the electoral process.
Despite the peaceful nature of the campaign so far, PAFFREL has received 20 complaints regarding the misuse of state resources and 15 complaints related to physical assaults. Hettiarachchi, however, added that no major incidents have been reported to date.
By Chaminda Silva
A group of 44 diplomats, including those from Vietnam, Bangladesh, Indonesia, Nepal, the Netherlands, India, Myanmar, Palestine, France, New Zealand, Cuba, Egypt, Japan, the United Kingdom, Thailand, Canada and South Korea, headed to Kandy, by train, yesterday morning, to witness the sacred relic exposition.
The group travelled to Kandy in a special observation saloon of a train that departed from the Colombo Fort Railway Station around 7:00 am.
The ‘Sri Dalada Vandanawa’, a special exposition of the Sacred Tooth Relic, commenced yesterday (18), and will continue till 27 April.
President Anura Kumara Disanayake, along with the ambassadors, high commissioners and other diplomats, participated in the inaugural event.
“This initiative aims to convey a message to Sri Lanka’s friendly nations that the country is recovering economically, overcoming previous challenges, and fostering national harmony. The event also seeks to strengthen international support for Sri Lanka,” the PMD said.
Yesterday (18), on the opening day, the public had the opportunity to pay homage to the Sacred Tooth Relic from 3:00 pm to 5:00 pm From today (19) onwards, it will open for public veneration, daily from 12:00 noon to 5:00 pm.
Police investigations have revealed that the shooting of a 27-year-old man in Ahungalla on Thursday night was a revenge attack. The motive is said to be his failure to carry out a contract killing assigned by a prominent underworld gang leader currently hiding in Dubai.
The 27-year-old victim, who was seriously injured in the attack, is currently receiving treatment at the Balapitiya Hospital. Investigations have further revealed that the attack was ordered by an underworld figure, known as “Abrew,” who is reportedly hiding in Dubai.
It has come to light that Abrew had given the young man a contract to kill a rival. However, since the contract was not carried out, the attack is believed to have been an act of retaliation.On the night of 17 April, around 9:48 pm, the young man received a phone call from an individual who instructed him to come and collect a packet of ice (a term commonly used to refer to crystal meth).
Accordingly, the 27-year-old arrived near the Revatha Primary School, in Balapitiya, Ahungalla in a three-wheeler. At that location, a hired gunman, who had arrived in another three-wheeler, fired three shots at him and fled the scene.
Despite being injured by one of the bullets hitting him, the young man managed to reach the Ahungalla Police Station in the same three-wheeler he had come in. Police officers then arranged for him to be admitted to Balapitiya Hospital for treatment.
By Hemantha Randunu
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