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Debt restructuring: Sajith alleges Prez failed to secure optimal deal

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Sajith

By Saman Indrajith

Opposition and SJB leader Sajith Premadasa told Parliament yesterday (02) that the government had failed to secure the optimal deal in the debt restructuring process.

Soon after the President made a special statement to the House, Premadasa said that the government haD failed to secure the best possible deal in the debt restructuring process. The globe-trotting President could have made use of his visits to secure the best possible deal to Sri Lanka. “The President says that the government has assured the best interests of this country but there are serious issues with regard to financial discipline and deliverance and promises it makes,” Premadasa said.

The government had not yet been able to provide thE House with bi-lateral agreements it had entered in relation to the debt-restructuring process, Premadasa said..

The President’s statement that Sri Lanka had been able to enter into agreements to restructure debt earlier than other countries that had been in similar economic crises was not true. Countries such as Ghana, Argentina, Ecuador, Barbados, Belize, Mongolia and Chad succeeded in entering into debt-restructuring agreements before Sri Lanka, said the Opposition Leader.

“We expected the President to furnish all necessary information pertaining to the debt-restructuring agreement. However, there was no such presentation. We are waiting to see whether Sri Lanka has been able to restructure the debts in a manner favourable to this country. We are yet to find whether the incumbent government could fare better than Argentina, Ghana and Ecuador in the debt restructuring agreement,” Premadasa said.

“The President, in his statement to the nation, said that we’ll start repaying the loans in 2028. There was a Debt Sustainability Analysis by the IMF in March 2023 stating that Sri Lanka would be able to start the process of repaying its debts from 2033. We demand to know how and why the government could not keep it to 2033 and reasons for starting this in 2028. We think that this is owing to failures that took place during the negotiations.

“The President speaks of a success in the debt-restructuring process without revealing true figures. For example, he stated that the debts we owed to the China Exim Bank was at US $ 3.9 billion and that the bank had agreed to restructuring. But he did not mention anything about the US $ 13.8 million debt we owed to the Chinese Government or US $ 538 million debt to the China Development Bank.

Premadasa said that the government’s debt restructuring process had double standard policy with regard to International Sovereign Bond (ISB) holders and the poor people in the country. It seems that the government has succumbed to the threats and pressure of the ISB holders. In 2022, it was clearly stated that the government would not restructure the local debts. However, in the face of the ISB holders’ threats, the government went for that. It did not even touch the super-rich primary bond dealers but pick-pocketed the monies in the pension funds and EPF. In October 2023, the government announced that it would not implement Value Recovery Instruments. However, after ISB holders exerted pressure, the government implemented Macro-link Bonds. It promised transparency and comparability for domestic bond holders and spoke of equal burden sharing. But there was no burden sharing by ISB holders; instead the government pick-pocketed the poor people’s money in pension funds and EPF.

“The President, in his statement, questioned the achievements this government has been able to make, good or bad. I am asking whether increase of malnutrition is good or bad, whether the brain drain is good or bad, whether the increase of unemployment good or bad, whether the increase of poverty is good or bad, whether the closure of MSMEs in their hundreds of thousands is good or bad, whether the entrepreneurs leaving their professions is good or bad, whether the collapse of construction industry is good or bad, whether the children faint in schools because they have no food is good or bad,” Premadasa demanded to know.



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Govt. urged to take action against deputy minister

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Ajith / Eranga

Allegation of doing business with state:

Civil society activist Oshala Herath has said that regardless of the political party one represents, all members of Parliament should abide by the law of the land. Herath said so when The Island sought his response to a report that he was planning to move court against Deputy Minister Eranga Weeraratne, Deputy Minister of Digital Economy, accused of holding the top positions at Omobio (Pvt.) and Eimsky Business Solutions (Pvt.) Ltd., at the time of the nominations, and took oaths as a National List MP of the NPP government.

President Anura Kumara Dissanayake is the Minister of Digital Economy, in addition to being Minister of Defence and Finance.

Herath is the Chairman of Abhinawa Niwahal Peramuna. Herath, whose legal challenge to SJB MP Diana Gamage over her citizenship issue, led to her removal from Parliament by the Supreme Court on 08 May, last year. He said the latest case underscored the responsibility on the part of political parties to ensure transparency in the nomination process as well as in the finalisation of National List.

Herath pointed out that the court rulings on petitions filed by him against two serving MPs were pending. He moved court against Jaffna District Independent MP Ramanathan Archchuna for handing over nominations to contest the 2024 November parliamentary elections without resigning from his post as a government medical officer. He also moved court against Minister of Rural Development, Social Security and Community Empowerment, Dr. Upali Pannilage, alleging that he had been an employee of the University of Ruhuna at the time he was declared an MP and subsequently appointed as a Cabinet Minister.

Our efforts to contact Deputy Minister Weeraratne were in vain. Our calls went unanswered.

Pointing out that there were many attorneys-at-law in the current Parliament, Herath emphasised the responsibility on their part to take up the issue. The Speaker should, on his own, inquire into such allegations in addition to the Parliamentary Privileges Committee stepping in, Herath said. Responding to another query, Herath said that such violations as well as cases of conflict of interests were far more serious than the recent controversy over NPP National List MP Asoka Ranwala’s educational qualifications.

SJB MP Ajith P. Perera told The Island that the Deputy Minister concerned admitted in Parliament that he had held top posts in the companies mentioned at the time he took oaths as an MP. Therefore, there couldn’t be any ambiguity with regard to his fault. Perera said that the conflict of interest issue involving NPPer was far more serious.

Referring to the issue at hand that had been first raised by SJB lawmaker Amila Prasad Siriwardena in Parliament during committee stage of the debate on the 2026 Budget, Attorney-at-Law Perera said that Weeraratne’s companies were engaged in mega business deals with the government. Declaring that they had secured contracts for government projects since 2019, Perera said that one of the companies Weeraratne was involved in had recently won a major contract from the incumbent government regarding the electronic ticketing system.

Kalutara District MP called for a comprehensive inquiry into the issue as the NPP had come to power, accusing all other political parties of waste, corruption, irregularities and mismanagement of state funds. MP Perera queried whether the current dispensation followed proper procedures in selecting Weeraratne’s company for the ticketing project

Both Herath and Perera urged the JVP and NPP to look into what they called the Weeraratne affair.

Over the years, several MPs had been disqualified to hold parliamentary seats. Dr. Rajitha Senaratne is one of them. When the Court of Appeal dismissed Dr. Senaratne from Parliament for being a supplier to the government, Ranil Wickremesinghe brought him back to Parliament, through the National List.

MP Perera said that since the last parliamentary election, the NPP had been embroiled in many controversies, including the release of 323 containers from the Colombo Port, in January this year, followed by signing of seven Memorandums of Understanding (MoUs)/agreements with India in April.

By Shamindra Ferdinando

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India sends stock of life-saving medicines

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Misri with Colonne

The government has appealed to India for immediate help to overcome the serious shortage of life-saving drugs and injections.

The Sri Lankan High Commission in New Delhi confirmed the appeal made by the government. The following is the text of statement issued by the Sri Lankan mission in New Delhi: “The Foreign Secretary of India, Vikram Misri, over the weekend handed over a consignment of urgently required essential medicines to Sri Lanka’s High Commissioner to India, Mahishini Colonne, in New Delhi. The assistance, extended in response to a request from the Government of Sri Lanka, forms part of Operation Sagar Bandhu, India’s humanitarian mission supporting Sri Lanka’s relief, recovery, and reconstruction efforts following the devastating Cyclone Ditwah.

The consignment consists of over 400 boxes of life-saving medicines and injections, which will be airlifted to Colombo by an Indian Air Force C-17 aircraft, alongside further additional relief assistance from India.

Deputy Indian High Commissioner Pandey shaking hands with Health Minister Dr. Nalinda Jayathissa

Foreign Secretary Misri reiterated the condolences of the Government and people of India for the tragic loss of lives and the extensive damage to infrastructure caused by the Cyclone. He reaffirmed India’s steadfast commitment to supporting Sri Lanka’s immediate humanitarian needs as well as rebuilding and reconstruction efforts. He also highlighted India’s readiness to work with Sri Lanka on a mix of initiatives tailored to the needs of affected communities.

High Commissioner Colonne conveyed the sincere appreciation of the President, Government, and people of Sri Lanka for India’s timely, continuous, and sustained support, and handed over to the Foreign Secretary, a letter of gratitude from the President of Sri Lanka to the Prime Minister of India.

 Describing the extensive nature of the damage, the High Commissioner appreciated the ongoing and consistent engagement of the Indian High Commission in Colombo, in collaboration with government officials and local authorities in coordinating relief, rescue, and recovery efforts.

SLAF personnel unloading medicine from IAF transport plane

The High Commissioner also requested India’s support in sharing its expertise and leadership in enhancing disaster-response capabilities and disaster-resilience frameworks, especially lessons from Odisha and Andhra Pradesh, both globally recognized for their advanced disaster resilience frameworks. Apart from this support that is under discussion, the New Delhi-based Coalition for Disaster Resilient Infrastructure (CDRI) has also been requested to undertake a visit to Sri Lanka to explore avenues for strengthening Sri Lanka’s disaster resilient infrastructure capacities. Noting the importance of having an effective and real-time warning system, efforts are being made to deploy a team to explore the establishment of an early warning system that would provide real-time geo-targeted alerts to citizens.

The High Commissioner reiterated Sri Lanka’s gratitude to the Government and people of India for their continued solidarity under Operational Sagar Bandhu, reaffirming the strength of the longstanding partnership between the two nations.”

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George Keyt Foundation contributes to national disaster relief efforts

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(L-R): The donation was handed to Prime Minister Harini Amarasuriya by Professor Jagath Weerasinghe (Trustee), Suresh Dominic (Treasurer), Malaka Talwatte (Chairman) and Abbas Esufally (Trustee) of the George Keyt Foundation.

The George Keyt Foundation (GKF) has extended meaningful support to the Government of Sri Lanka’s disaster relief efforts following the severe devastation caused by Cyclone Ditwah.

The text of the press release issued by the GKF: “In 2023, the Foundation undertook its first major fundraiser in recent years by issuing 30 numbered limited edition prints of Kangodi Rangi, a painting by George Keyt entrusted to the Foundation. Twenty-eight prints were acquired by donors to support charitable causes, while another was gifted to the President’s collection. Print Number 1 of 30 was retained to support the Foundation’s long-term priorities.

In light of the unprecedented impact of Cyclone Ditwah and the urgent national need for disaster assistance, the trustees unanimously resolved to seek a donor for Print Number 1 of 30, with clear disclosure that the proceeds would be channeled directly to the Government’s disaster relief programme. This appeal received an immediate response, resulting in a private donation of Rs. 3 million.

The contribution was formally handed over to Prime Minister Harini Amarasuriya for utilisation in the Government’s ongoing relief and recovery efforts.

The George Keyt Foundation is honoured to support the people of Sri Lanka at this critical moment and reaffirms its commitment to serving national needs while preserving and promoting the artistic legacy of George Keyt.

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