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Debate on debt-restructuring deals put off amidst allegations that Opp. denied access to agreements

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Prof. Peiris

Prez seeking unfair advantage, politicising bankruptcy – Prof. Peiris

By Shamindra Ferdinando

Top Opposition spokesman Prof. G. L. Peiris yesterday (01) asked the Wickremesinghe-Rajapaksa government to explain how it intended to work out an agreement with external private commercial creditors.

Of Sri Lanka’s total debt, 39.5 % were owed to external private commercial creditors, with ISBs amounting to a staggering 33.6%, the former External Affairs Minister said, urging the government to come clean on the issue at hand without seeking political advantage over the recently finalised agreement with Official Creditor Committee (OCC) USD 5.8 bn debt restructuring coupled with the USD 4.2 billion debt agreement with China.

Prof. Peiris dealt with the two agreements at his regular media briefing at the Nawala Office of the pro-SJB People’s Freedom Congress, a breakaway faction of the SLPP.

Sri Lanka, on June 26, finalised an agreement with OCC to restructure the debt owed to its bilateral lenders, including India and Japan, and signed a separate agreement with China for debt treatment. The agreement with China dealt with USD 4.2 bn.

Instead of seeking the best possible arrangements for the country, Prof. Peiris charged that the government sought to exploit the debt restructuring process to the advantage of Ranil Wickremesinghe’s presidential election campaign. The country could have had secured a better deal from OCC if the government didn’t pursue a political agenda, Prof. Peiris said, claiming that undue haste caused irreparable losses to Sri Lanka’s cause.

The Island sought an explanation from Prof. Peiris as to why he refrained from commenting on the debt treatment agreement with China’s Exim Bank. The academic said that the agreement with China was due to the absence of direct relevance to core of his presentation to the media.

Referring to the convening of Parliament at 9.30 am today (02) as requested by Prime Minister Dinesh Gunawardena, to debate the Resolution for the Implementation of External Debt Restructuring Agreements, Prof. Peiris said that at that time he addressed the media at 10 am on July 1 the Opposition was yet to receive the relevant agreements.

The Public Finance Committee and all members of Parliament should have had access to those documents the moment the Premier requested the Speaker to convene Parliament on July 2 at 9.30. The Parliament scheduled the debate for July 2 and 3.

Prof. Peiris said that at the end of the two-day debate, the vote on the Resolution for the Implementation of External Debt Restructuring Agreements was to be held.

However, soon after the end of the briefing, Prof. Peiris informed The Island that the government had cancelled the debate scheduled for today. The three-page resolution that had been distributed wouldn’t be moved and the day’s business would be restricted to President Wickremesinghe’s speech. Furthermore, the second day of the debate had been cancelled, Prof. Peiris said.

Prof. Peiris said that those who portrayed President Wickremesinghe as the man of the moment in the wake of finalisation of the agreement with OCC should keep in mind the total external debt had risen to USD 100.9 bn – 19.2% increase since he joined the government in May 2022.

The actual situation is quite serious and further deteriorating, Prof. Peiris said, urging the government to adopt a result-oriented genuine strategy instead of seeking petty political advantage ahead of the presidential election. The former Minister alleged that instead of taking the Opposition and public to confidence the government sought to manipulate the electorate to Wickremesinghe’s advantage.

Pointing out that Ghana, experiencing severe financial difficulties, had handled debt restructuring talks successfully with commercial lenders, Prof. Peiris said Sri Lanka failed pathetically to push for better conditions. Those who negotiated on behalf of Sri Lanka couldn’t achieve the desired results as they were forced to pursue a political agenda, the dissident SLPPer said.

The ex-Minister said that proper debate on debt restructuring deals could be held after the Opposition received the agreements signed in Paris.



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Navy seizes an Indian fishing trawler poaching in Sri Lankan waters north of Talaimannar

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During an operation conducted in the wee hours of Tuesday (23 Dec 25), the Sri Lanka Navy seized an Indian fishing trawler  and apprehended 12 Indian fishermen, while they were poaching in Sri Lankan waters north of Talaimannar.

Recognizing the detrimental effects of poaching on marine resources and the livelihoods of local fishing communities, the Sri Lanka Navy continues to conduct regular operations as
proactive measures to deter such activities. These efforts underscore the collective robust approach steadfast commitment to safeguarding the nation’s marine ecosystems while ensuring the economic security and wellbeing of its citizens.

The fishing trawler along with the fishermen held in this operation was handed over to the Fisheries Inspector of Mannar for onward legal proceedings.

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India’s External Affairs Minister meets Sri Lanka PM

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India’s External Affairs Minister, Dr. Subramaniam Jaishankar, met with the Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, on 23 December at Temple Trees, during his visit to Sri Lanka as the Special Envoy of Indian Prime Minister Shri Narendra Modi.

The meeting took place as part of the official visit aimed at holding discussions with Sri Lanka’s top leadership, at a time when the nation commenced reconstruction efforts following the devastation caused by Cyclone Ditwah.

During the discussions, the Minister of External Affairs of India reaffirmed readiness to extend support for Sri Lanka, including assistance in rebuilding railways, bridges, and strengthening of the agricultural sector in the country. He also highlighted the importance of having effective systems in place to respond to disaster situations, supported by strong legislative, administrative, and institutional frameworks. Both sides reviewed ongoing relief efforts and explored avenues to further strengthen bilateral cooperation in disaster response and recovery.

The Prime Minister commended the Government of India for the continued support, noting that the recovery process following the devastation caused by Cyclone Ditwah include beyond immediate relief efforts to long-term measures such as resettlement, and reconstruction of habilitation and infrastructure.

The Prime Minister further stated that steps have been taken to reopen schools as part of the process of restoring normalcy, with close monitoring in place. The Prime Minister emphasized the need to ensure stability, reduce vulnerability, and strengthen protection mechanisms highlighting the solidarity of the people, their strong spirit of volunteerism, and collective action demonstrated during the emergency situation.

The event was attended by the High Commissioner of India Santosh Jha, Additional Secretary (IOR), MEA  Puneet Agrawal, Joint Secretary (EAMO), MEA  Sandeep Kumar Bayyapu, Deputy High Commissioner Dr. Satyanjal Pandey, and representing Sri Lankan delegation, Secretary to the Prime Minister  Pradeep Saputhanthri, Additional Secretary to the Prime minister Ms.Sagarika Bogahawatta, Director General (South Asia), Ministry of Foreign Affairs Samantha Pathirana, Deputy Director, South Asia Division, Ministry of Foreign Affairs Ms.Diana Perera.

[Prime minister’s media division]

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Sri Lanka’s coastline faces unfolding catastrophe: Expert

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Sri Lanka is standing on the edge of a coastal catastrophe, with the nation’s lifeline rapidly eroding under the combined assault of climate change, reckless development and weak compliance, Director General of the Department of Coast Conservation and Coastal Resource Management (DCC&CRM) Dr. Terney Pradeep Kumara has warned.

“This is no longer an environmental warning we can afford to ignore. The crisis is already unfolding before our eyes,” Dr. Kumara told The Island, cautioning that the degradation of Sri Lanka’s 1,620-kilometre coastline has reached a point where delayed action could trigger irreversible damage to ecosystems, livelihoods and national security.

He said accelerating coastal erosion, rising sea levels, saltwater intrusion and the collapse of natural barriers, such as coral reefs and mangroves, are placing entire coastal communities at risk. “When mangroves disappear and reefs are destroyed, villages lose their first line of defence. What follows are floods, loss of homes, declining fisheries and forced displacement,” he said.

Dr. Kumara stressed that the coastline is not merely a development frontier but the backbone of Sri Lanka’s economy and cultural identity. “More than half of our tourism assets, fisheries and key infrastructure are concentrated along the coast.

If the coast fails, the economy will feel the shock immediately,” he warned.

Condemning unregulated construction, illegal sand mining and environmentally blind infrastructure projects, he said short-term economic interests are pushing the coastline towards collapse. “We cannot keep fixing one eroding beach while creating three new erosion sites elsewhere. That is not management—it is destruction,” he said, calling for science-driven, ecosystem-based solutions instead of politically convenient quick fixes.

The Director General said the Department is intensifying enforcement and shifting towards integrated coastal zone management, but warned that laws alone will not save the coast. “This is a shared responsibility. Policymakers, developers, local authorities and the public must understand that every illegal structure, every destroyed mangrove, weakens the island’s natural shield,” he added.

With climate change intensifying storms and sea surges, Dr. Kumara warned that Sri Lanka’s vulnerability will only worsen without urgent, coordinated national action. “The sea has shaped this nation’s history and protected it for centuries. If we fail to protect the coast today, we will be remembered as the generation that allowed the island itself to be slowly eaten away,” he went on to say.

By Ifham Nizam

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