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Harsha hints at Chinese hurdle in debt relief talks

Published

3 years ago

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By Saman Indrajith

SBJB MP Harsha de Silva said that he had asked the Gotabaya Rajapaksa administration to seek IMF assistance in 2020.

“At that time a U.S dollar was selling at Rs 200. The interest rates were around six percent. Inflation was around six percent. The situation is completely different today. Our interest rates are around 35 percent and the inflation is over 50 percent. Dollar sells at Rs 370. We have defaulted.”

No foreign nation or international institution had any faith in Sri Lanka, De Silva said.

“Now, we are begging the IMF to help us. The IMF will give us 2.9 billion dollars. It’s not the money that’s important but after we get the money other countries will think we are now following a viable plan to get out of the crisis. IMF and economic reforms are the two sides of the same coin,” he said,. When he suggested to the Rajapaksa administration to go before the IMF, the situation was simpler, de Silva said.

Then it would have been an agreement between Sri Lanka and the IMF.

“Now there are three parties, simply speaking. The government, the IMF, and our lenders. There are bilateral lenders like Japan, China, and India as well as private entities that have bought our bonds. If we can’t come to an understanding with the official creditors, the IMF can’t give us money. That’s their policy,” he said.

India has given a written financing assurance to the IMF in support of Sri Lanka’s economic revival. China has not yet given this assurance, the SJB MP said.

“China has not given these assurances because of two reasons. China says Sri Lanka has promised the IMF that by 2032, the country will reduce the debt ratio, compared to the GDP, to 95 percent. It is now around 140 percent. They are just not ready to accept we can do that,” he said.

Sri Lanka’s Gross Financing Need is 31 percent now, he said. This is one of the highest percentages in the world, de Silva said.

“We have told the IMF that we will reduce this to 13 percent by 2027. China also doesn’t think we can do that. They say they don’t really buy into the debt sustainable analysis that Sri Lanka and the IMF have agreed upon. Their EXIM bank has given us a letter saying that they will provide relief for another 10 months. During that time the two sides can talk about how debt can be restructured,” he said.

However, recently it was reported that there was a loophole that the IMF can use to give us money, De Silva said. That is, if one major lender does not agree on debt restructuring, the IMF can give a loan if the disagreeing lender has loaned less than 50 percent of total bilateral debt, he said.

“Chinese loans were about 53 percent of total bilateral debt. So by considering loans by EXIM bank as bilateral loans and by recategorizing loans by China Development Bank as commercial loans, we have reduced Chinese loan percentage to about 49 percent of total bilateral debt. The government is trying to use that loophole and access IMF money. However, on Wednesday the IMF said that they need Sri Lanka to come to an agreement with China. So this is where we are,” he said. .


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“Investments in Professional Education Are Investments in Institutional Strength and National Progress” – PM

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8 hours ago

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2026/02/19

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Prime Minister Dr. Harini Amarasuriya stated that strengthening Sri Lanka’s professional education framework and aligning it with internationally recognised standards is essential to building a skilled, ethical, and globally competitive workforce.

The Prime Minister made these remarks while addressing the official launch of the QS-accredited Chartered Qualification in Human Resource Management (CQHRM) at SCQF Level 11 (New Syllabus), organised by the Chartered Institute of Personnel Management (CIPM) Sri Lanka under the theme New Heights of Recognition. The event was held on Wednesday, 18 February at the Cinnamon Life, Colombo.

Emphasising the importance of expanding professional and vocational education pathways, the Prime Minister stated:

“This is of crucial importance to us in broadening our educational pathways and opportunities. We need to increase access to education that is globally recognised and that offers multiple pathways in professional and vocational fields. This aligns closely with the reform process we have initiated in the education sector and with our commitment to lifelong learning where individuals can work and learn at the same time, and where education is not limited to a particular age group but continues throughout life.”

Highlighting Sri Lanka’s national priorities, the Prime Minister further observed:

“At a time when Sri Lanka is focused on economic recovery, institutional reform and sustainable growth, the need for competent and ethical human resource leadership is clear. A competitive economy depends not only on investment and infrastructure but also on skilled professionals who can lead institutions effectively.”

The Prime Minister noted that the QS accreditation of the CQHRM qualification strengthens international recognition of Sri Lankan human resource professionals, enhances professional progression pathways, and reinforces confidence in the country’s professional education system. She also underscored the role of human resource leadership in advancing equity and inclusion within workplaces, including fair recruitment practices, safe working environments, leadership development for women, and inclusive policies for persons with disabilities and neurodivergent individuals.

Addressing the future of work, the Prime Minister stressed the importance of preparing for rapid technological transformation, including the growing impact of artificial intelligence on industries and workforce management, encouraging institutions to proactively adapt to emerging demands.

The event was attended by Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, along with other distinguished guests.

[Prime Minister’s Media Division]

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Advisory for Severe Lightning issued to the Western and Sabaragamuwa provinces and Nuwara-Eliya, Galle and Matara districts

Published

12 hours ago

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2026/02/19

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Advisory for Severe Lightning
Issued by the Natural Hazards Early Warning Centre  at 12.00 noon 19 February 2026 valid for the period until 11.00 p.m. 19 February 2026

The public are warned that thundershowers accompanied with severe lightning are likely to occur at some places in in the Western and Sabaragamuwa provinces and in Nuwara-Eliya, Galle and Matara districts after 2.00 p.m.

There may be temporary localized strong winds during thundershowers.

General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:
 Seek shelter, preferably indoors and never under trees.
 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
 Avoid using wired telephones and connected electric appliances during thunderstorms.
 Avoid using open vehicles, such as bicycles, tractors and boats etc.
 Beware of fallen trees and power lines.
 For emergency assistance contact the local disaster management authorities.

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Navy and Coast Guard seize 04 Indian fishing vessels poaching in Sri Lankan waters

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12 hours ago

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2026/02/19

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During operations conducted in the dark hours of 18 Feb 26, the Sri Lanka Navy and Coast Guard seized 04 Indian fishing boats and apprehended 22 Indian fishermen, while they were poaching in Sri Lankan waters north of Mannar and off the Delft Island, Jaffna.

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

The 02 fishing boats along with the 10 fishermen held in Mannar were handed over to the Fisheries Inspector of Mannar and the remaining 02 fishing boats intercepted off the Delft Island, together with 12 Indian fishermen were handed over to the Fisheries Inspector of Myliddy for onward legal proceedings.

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