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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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Sajith warns country is being dragged into authoritarian rule 

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Sajith Premadasa

Opposition and SJB Leader Sajith Premadasa has alleged that the current government is attempting to suppress freedom of expression and media freedom to lead the country towards authoritarian rule.

In a video message on Thursday (25), Premadasa said that in a democratic country, the four main pillars safeguarding democracy are the legislature, the executive, the judiciary, and the independent media, but, at present, the government is using the police to violate both the democratic rights of the people and the rights of police officers themselves.

He said that the government is working to establish a police state that deprives citizens of their right to access truthful information.

“For democracy to be protected, media freedom must be safeguarded, and space must be given to independent media. Instead, the government is interfering with the independent media process, using the police to suppress and intimidate independent media,” he said.

He noted that even when independent media present their views based on reason, facts, and evidence, the government attempts to suppress them. Such actions, he said, amount to turning a democratic country into a police state. “Do not suppress the voice of the silent majority, the independent media,” he urged.

Premadasa emphasised that independent media represent the voice of the silent majority in the country and must not be suppressed.

“Media repression is a step towards authoritarian rule, and the people did not give their mandate to create an authoritarian regime or a police state. If the government attempts to abolish democratic rights, the Samagi Jana Balawegaya will stand as the opposition against it,” he said.

The Opposition Leader further alleged that the government was interfering with police independence, stating, “Political interference has undermined the independence of the police, making it impossible for them to serve impartially. Suppressing freedom of expression is an attempt to lead the country towards authoritarian rule.”

Premadasa pointed out that the media has the right to reveal the truth, and interfering with that right is a violation of the rights of 22 million citizens.

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Wholesale mafia blamed for unusually high vegetable prices  

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Vegetable prices at the Peliyagoda Manning Wholesale Market surged to unusually high levels yesterday (26), raising concerns among consumers as the festive season drives up demand. The situation is expected to persist over the next few days, a spokesman for the Manning Market told The Island.

He said a sharp increase in the number of buyers visiting the wholesale market, ahead of upcoming festivities, had resulted in a sudden spike in demand, prompting wholesale traders to raise prices significantly. The price hikes have affected a wide range of commonly consumed vegetables, placing additional pressure on household budgets.

According to market sources, the wholesale price of beans climbed to Rs. 1,100 per kilogram, while capsicum soared to Rs. 2,000 per kilogram. Green chillies were selling at around Rs. 1,600 per kilogram. Prices of other vegetables, including beetroot, brinjal (eggplant), tomatoes, bitter gourd, snake gourd and knolkhol, also recorded unusually high increases.

The spokesman alleged that despite the steep rise in prices, vegetable farmers have not benefited from the increases. Instead, he claimed that a group of traders, who effectively control operations at the wholesale market, are arbitrarily inflating prices to maximise profits.

He warned that if the relevant authorities fail to intervene promptly to curb these practices, vegetable prices could escalate further during the peak festive period. Such a trend, he said, would disproportionately benefit a small group of middlemen while leaving consumers to bear the brunt of higher food costs.

By Kamal Bogoda ✍️

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Cyclone-damaged Hakgala Botanical Garden reopened with safety measures

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Hakgala Botanical Garden

The Hakgala National Botanical Garden, which was closed in the aftermath of Cyclone Ditwah, has been reopened to tourists from yesterday, the Ministry of Environment indicated.

The Ministry said the reopening was carried out in accordance with recommendations and guidelines issued by the National Building Research Organisation (NBRO) and the DisasterManagement Centre (DMC) after safety assessments were completed.

However, due to the identification of hazardous ground conditions, several areas, within the garden, have been temporarily restricted. These include the pond area, near the main entrance, and access roads leading towards the forest park where potential risks were observed. Warning signs have been installed to prevent visitors from entering these zones.

To ensure the safety and convenience of both local and foreign visitors, the garden’s management has introduced a special assistance programme, with staff deployed to guide and support tourists.

The Hakgala Botanical Garden was closed as a precautionary measure during the disaster situation triggered by Cyclone Ditwah. The Ministry noted that the garden has now been safely reopened, within a short period, following remedial measures and inspections, allowing visitors to resume access while maintaining necessary safety precautions.

By Sujeewa Thathsara ✍️

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