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Discussions with China underway to resolve economic crisis

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USD 2.5 bn funding:

Amb Zhenhong silent on IMF intervention

By Shamindra Ferdinando

The cash-strapped Sri Lankan government is negotiating with China for funds amounting to USD 2.5 bn in addition to USD 2.8 bn obtained since the global epidemic Covid-19 eruption in early 2020.

Chinese Ambassador Qi Zhenhong disclosed Sri Lanka’s request at the onset of a media briefing held at the Kingsbury Hotel in Colombo yesterday (21).

The disclosure was made close on the heels of the finalisation of USD 1 bn loan facility provided by India and President Gotabaya Rajapaksa’s declaration of his readiness to seek IMF assistance. Amb. Zhenhong declined to comment on Sri Lanka’s decision to resume negotiations with the IMF.

Sri Lanka announced plans for talks with the IMF in the wake of an increase in prices of all essential items and services following the floating of the Rupee in the first week of March.

Amb. Zhenhong said that China recently received requests for USD 1 billion financing facility and USD 1.5 bn buyer’s credit. The Chinese envoy declared: “We understand the urgency in Sri Lanka’s need. Relevant authorities are studying the request.”

In spite of repeated questions, Amb Zhenhong refrained from going into details, including Sri Lanka’s specific needs while reiterating their commitment to help a friendly country.

Zhenhong presented his credentials to President Gotabaya Rajapaksa in mid Nov 2020 at the height of the first Covid-19 wave.

At the commencement of the briefing attended by local and Colombo based international media, Amb. Zhenhong said a range of events and activities conducted so far this year to mark 65th anniversary of China-Sri Lanka diplomatic relations and the 70th anniversary of the Rubber-Rice pact.

Responding to a query raised by Reuters, Amb Zhenhong said that USD 1 bn term financing facility had been provided on March 18, 2020 and April 12, 2020 (USD 500 mn each) with maturity period of 10 years. That was followed by CNY 2 bn (approximately USD 300 mn) term financing facility provided on Aug. 17, 2021, Amb Zhenhong said, adding CNY 10 bn (approximately USD1.5 bn) bilateral currency SWAP agreement was finalized in March 2021.

The Chinese envoy sidestepped a specific query on President Gotabaya Rajapaksa’s request to restructure debt repayments to overcome the financial crisis.

President Rajapaksa made the request during a meeting with Chinese Foreign Minister Wang Yi in early January this year.

New requests for USD 2.5 bn (USD 1 bn financing facility and USD 1.5 bn buyer’s credit) are believed to have been made following the Chinese Foreign Minister’s high profile visit.

Asked whether India has overtaken China in providing assistance and investments here, Amb Zhenhong listed Chinese loans and investments while asserting consistency, scale and comprehensiveness in their role.  The Chinese envoy didn’t respond to the query on Finance Minister Basil Rajapaksa being too close to India and pursuing an agenda at the expense of Beijing.

Amb Zhenhong dismissed assertions that the failure on the part of the Colombo Port City to attract investments and concerns over proposed Free Trade Agreement (FTA) between China and Sri Lanka. Amb Zhenhong assured: “We’ll never take advantage of FTA with Sri Lanka.” The Chinese envoy said so when the media queried the absence of a draft of FTA and serious concerns over its content against the backdrop of the previous Sri Lanka administration finalizing FTA with Singapore under controversial circumstances.

Amb Zhenhong said that the experts of both sides could handle the issues at hand.

Amb Zhenhong said that in spite of Covid-19 eruption China sustained its projects here with over 11,000 locals hired. Referring to major Chinese projects underway here namely Colombo Port City, Colombo International Container Terminals (CICT) and Hambantota International Port (HIP), Amb Zhenhong emphasized their ventures were on track.

The envoy questioned the unexplained suspension of ADB funded power projects in the North while declining to respond to questions regarding the status of them. The Chinese envoy advised that such an attitude on Sri Lanka’s part would be inimical to ongoing efforts to attract foreign investment.

The Chinese envoy avoided responding to queries regarding growing Indian presence in the Northern and Eastern Provinces of Sri Lanka and instances of India objecting to Chinese taking up projects. However, Amb Zhenhong explained the projects undertaken by China in Tamil dominated region, investments and grants made in support of the civilian community there.



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A QR code system to be introduced for agricultural lands and other sectors requiring fuel

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It was decided at the committee appointed to oversee the distribution of essential goods to appoint five officials from the Ceylon Petroleum Corporation to cover all ministries in order to examine fuel-related issues and undertake the necessary interventions.

It was further discussed that the responsibility of these officials would be to examine fuel-related issues arising in institutions under each ministry and to intervene in providing solutions by maintaining coordination with the Corporation.

These matters were discussed at a meeting of the committee appointed to oversee the distribution of essential goods, chaired by Minister of Transport, Highways and Urban Development Bimal Rathnayake held on Friday (27) at the Presidential Secretariat.

It was also noted, with particular attention, that requests have been made by industrialists indicating that the current fuel quota allocated to vehicles for the distribution of their products across the country is insufficient. It was further discussed that, if these concerns are not addressed, there is a likelihood of an increase in the prices of goods, which could in turn cause significant hardship to the public during the festive season.

The committee also discussed the issuance of fuel for the distribution of essential food items by state and private institutions, including supermarkets such as Sathosa, wholesale importers, tourism-related service providers, hotels and other service-providing organisations.

Accordingly, it was discussed that requests for fuel quotas submitted by these institutions should be carefully considered and prompt action taken as necessary and that such requests should be forwarded to the Ministry of Energy through the relevant ministries.

Attention was also drawn to the need for the swift implementation of a QR code system for the issuance of fuel to other sectors, including agriculture and the fisheries industry, based on letters issued on the recommendations of the relevant government officials, including agricultural research officers, instead of the previous method of direct fuel allocation.

Minister Bimal Rathnayake emphasised the need to ensure a continuous and properly managed fuel supply, with particular focus on providing goods to the public without shortages and preventing excessive price increases during the forthcoming Sinhala and Hindu New Year season.

The discussion was attended by a group of government officials, including Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, Deputy Minister of Power Arkam Ilyas, Senior Additional Secretary to the President, Kapila Janaka Bandara and Chairman of the Ceylon Petroleum Corporation, D. J. Rajakaruna.

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Inquiry into female employee’s complaint: Retired HC Judge’s recommendations ignored

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Speaker Wickramaratne receiving the report from retired HC Judge Alahapperuma. Secretary General of Parliament Rohanadeera stands next to the Speaker (file photo)

Parliament:

… sexual harassment claims dismissed

Recommendations made by retired High Court Judge Ms. Sujatha Alahapperuma, following an inquiry into claims by a female employee of the Department of Information Systems and Management of Parliament, regarding sexual harassment, denial of due salary increments and other forms of harassment, were yet to be implemented, sources familiar with the investigation said.

The retired HC Judge handed over the report to Speaker Dr. Jagath Wickramaratne on 24 November, 2025. Secretary General of Parliament Kushani Rohanadeera was also present on that occasion.

The retired judge has recommended that administrative decisions be taken expeditiously to grant her salary increments due for 2024 and 2025, reevaluation of all employees attached to the Department of Information Systems and Management and keep them under close scrutiny and strengthening of the ‘Helpdesk’ to meet the requirements.

Sources said that none of the recommendations have been implemented and the concerned employee in spite of still being the Senior Helpdesk coordinator remained attached to the Supplies and Services Office. She had been ordered to report to the Supplies and Services Office in January 2025 following a continuing dispute with the top management of the Department of Information Systems and Management.

Parliamentary Staff Advisory Committee on 25.07.2025 decided to conduct an external investigation into the issue after the employee refused to accept the outcome of the internal inquiry conducted in the wake of SJB lawmaker Mujibur Rahman raising the issue in Parliament.

The retired judge has emphasised the urgent need to take tangible measures to address administrative issues with a view to enhance discipline and human resources management among other issues.

However, the retired judge has declared that the complainant or any other female employee attached to the of Department of Information Systems and Management hadn’t been subjected to any form of sexual harassment as alleged.

The retired judge further asserted that the complainant had been prejudicially treated by two interview boards when she appeared before them seeking posts of Database Administrator and Parliament Officer.

The retired judge has also asserted that the Supplies and Services Office where the complaint continued to serve even now was not suitable and not in line with her qualifications. Some of those who had appeared before the retired judge during the inquiry claimed that was a temporary transfer. However, the report dismissed that claim declaring that transfer appeared to have been done outside acceptable procedure and her increments stopped without giving any justifiable reason.

The retired judge has stated that for want of proper procedures and systems, the administration seems to be in turmoil.

 By Shamindra Ferdinando

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Motor Traffic CG remanded

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Motor Traffic Commissioner General Kamal Amarasinghe, taken into custody by the CID, was remanded until today (30) following his production before the Kurunegala Magistrate’s Court.

The investigation was launched after the Central Anti-Corruption Task Force received information regarding an illegally assembled taxi, which was later handed over to the CID for further inquiries.

Preliminary findings revealed that the vehicle’s registered chassis number had been altered and documents submitted to obtain a “weight certificate.” These documents were then used to assign a registration number to the taxi, while the chassis modification files were concealed. False declarations were allegedly made to facilitate the fraudulent assembly, with Commissioner General Amarasinghe accused of aiding and abetting the operation.

The suspect was taken into custody on the afternoon of Friday (27) by a CID team at the Hector Kobbekaduwa Road, Colombo 7.

In parallel, the Bribery and Corruption Commission has launched a separate probe into the matter.

The initial investigation was conducted under the direction of  SSP Indika Weerasinghe, Head of the Central Anti-Corruption Task Force, along with DIG Rohan Olugala and Senior DIG of CID Kamal Ariyawansa.

BY Norman Palihawadane

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