News

Harsha hints at Chinese hurdle in debt relief talks

Published

3 years ago

2023/02/24

Thilina Walpola

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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Financial contribution from Gift Sri Lanka Foundation and the Georgia Buddhist Vihara, USA, for disaster relief

Published

2 hours ago

2025/12/19

Priyan

In support of relief efforts for communities affected by the Ditwah cyclone, Gift Sri Lanka Foundation and the Georgia Buddhist Vihara (GBV), USA, have made a financial contribution of USD 16,000 to the Government’s ‘Rebuilding Sri Lanka’ Fund.

The relevant cheque was formally handed over on Thursday (18) afternoon at the Presidential Secretariat by the Chief Incumbent of the Georgia Buddhist Vihara, Most Venerable Panamwela Vajirabuddha Nayaka Thero, to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

News

European Union provides over Euro 2.35 million Humanitarian Assistance to Sri Lanka

Published

2 hours ago

2025/12/19

Priyan

The European Union has allocated a total of Euro 2.35 million of financial assistance to Sri Lanka. This includes Euro 500,000 through IFRC and Euro 1.85 million through DG-European Civil Protection and Humanitarian Aid Operations (ECHO) partners, WFP and UNICEF as humanitarian assistance to Sri Lanka, in response to the impact of Tropical Cyclone Ditwah,

In addition to the above allocation, the Union Civil Protection Mechanism (UCPM), which brings together 37 participating States, all 27 EU member States, as well as Albania, Bosnia and Herzegovina, Iceland, Moldova, Montenegro, North Macedonia, Norway, Serbia, Türkiye and Ukraine, is providing in-kind assistance to Sri Lanka.

As a part of the UCPM in kind assistance being provided, on Wednesday, 17th December, Sri Lanka received an aid shipment, with two air cargo flights arriving in Colombo from Germany, France and Luxembourg. This aid shipment included 83 tonnes of relief items such as family tents, mattresses, hygiene and kitchen kits, beds and water filters. The supplies are intended for distribution among communities most affected by the cyclone.

The arrival of the assistance was welcomed by the EU Ambassador to Sri Lanka, Carmen Moreno, French Ambassador, Rémi Lambert, and the Deputy Head of Mission at the German Embassy, Sarah Hasselbarth. On behalf of the Government of Sri Lanka, the donations were received by Sugeeshwara Gunaratna, Director General / Europe & North America, Ministry of Foreign Affairs, Foreign Employment & Tourism and Chathura Liyanarachchi, Director, Disaster Management Center (DMC).

Italy has also provided a team of structural engineers to support Sri Lanka’s disaster assessment and recovery process.

Furthermore, the EU has activated its Copernicus Emergency Management Service (EMS) in rapid mapping mode, with around 30 maps produced so far.

The European Union has committed continued cooperation and support to Sri Lanka’s disaster recovery and rebuilding process, reaffirming the enduring friendship and strong partnership between Sri Lanka and the European Union.

News

Sajith: Met Dept. officials under virtual house arrest

Published

4 hours ago

2025/12/19

Thilina Walpola

Sajith Premadasa

… hands over proposal asking for PSC probe into govt.’s lapses

Opposition and SJB leader Sajith Premadasa yesterday accused the government of having gagged the Meteorology Department officials, who, he said, had been placed under virtual house arrest. He claimed that they had been barred from speaking to the media.

Speaking in Parliament, Premadasa said withholding information from the public was unacceptable. He insisted that the Meteorology Department and international agencies had repeatedly issued warnings about extreme weather events between November 11 and 26. He demanded to know why Sri Lanka’s disaster management mechanism had not been activated in a timely manner.

“The key issue is why the country’s disaster management system failed to respond when the risks were clearly identified,” he told the House, describing the lapse as a serious failure of governance.

Condemning attempts to silence officials, Premadasa said acknowledging mistakes was the only way forward. “If we are wrong, we should admit it. If we are right, we should say so. Silencing professionals will help solve problems.

The Opposition Leader also called for a National Disaster Response Force and amendments to the Disaster Management Act to strengthen preparedness and response mechanisms.

Premadasa and several other Opposition MPs have submitted a formal proposal to the Speaker seeking the appointment of a Parliamentary Select Committee to investigate the government’s failure to mitigate the impact of Cyclone Ditwah.

The Opposition has demanded a 30-member select committee tasked with producing a comprehensive report on the institutional and administrative failures during the disaster.

Describing the government’s lack of preparedness as deeply regrettable, the MPs have said that timely action would have helped save many lives and reduced the scale of destruction caused by the cyclone.

By Saman Indrajith ✍️