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Harsha hints at Chinese hurdle in debt relief talks

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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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Move to extend judges’ retirement ages could damage Sri Lanka’s global image, warns Prof. Peiris

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Prof.Peiris

Former Foreign Minister Prof. G. L. Peiris yesterday warned that any move by the government to extend the retirement age of superior court judges could have serious repercussions for Sri Lanka’s international standing, particularly ahead of the next session of the UN Human Rights Council (UNHRC), in Geneva, in September.

Addressing a media briefing, organised by the People’s United Opposition, at its Flower Road, Colombo office, Prof. Peiris claimed that attempts to interfere with the judiciary, through extensions of judges’ terms, would undermine the credibility of Sri Lanka’s courts and weaken the country’s position before the international community.

Prof. Peiris said there was widespread opposition to the proposal to extend the superior court judges’ tenure by two years, with lawyers’ organisations, academics and civil society groups expressing concerns over the move.

“There is no clarity whatsoever from the government’s side,” Prof. Peiris said, claiming that unlike in other countries where such proposals were subjected to lengthy public consultations, there had been no transparency regarding the government’s intentions.

He argued that if such extensions were granted to judges, similar privileges would have to be considered for other sectors, including the public service, university academics and medical specialists.

Prof. Peiris said the issue had gained greater significance due to Sri Lanka’s engagement with the UNHRC, which he described as having established a special investigative mechanism relating to the country.

He alleged that the politicisation of the judiciary would provide further grounds for international criticism against Sri Lanka, which was already facing scrutiny over alleged human rights issues.

“The next session of the UN Human Rights Council will be held in Geneva, in September,” Prof. Peiris said. “This issue will not only affect our country internally, but will also cause serious damage to Sri Lanka internationally.”

He claimed that Sri Lanka had previously defended itself against international interventions by highlighting the independence and reputation of its judicial system.

Referring to the country’s legal history, Prof. Peiris said Sri Lanka had possessed a judiciary respected globally, citing former Supreme Court Judge Dr. Christopher Weeramantry’s tenure as Vice-President of the International Court of Justice in The Hague as an example of international recognition of Sri Lankan judicial expertise.

He said that during his tenure as Foreign Minister, he had maintained that Sri Lanka’s own courts were capable of addressing domestic issues and that foreign intervention was unnecessary.

Prof. Peiris also referred to discussions he had held with Russian Foreign Minister Sergei Lavrov and Chinese Foreign Minister Wang Yi, claiming that both had supported Sri Lanka’s position that external interference in domestic matters should not be permitted.

However, he alleged that the current situation was different, claiming that the judiciary was being politicised through selective extensions of service while vacancies remained in the Supreme Court and Court of Appeal.

He questioned why judicial vacancies had not been filled if the government’s stated objective was to reduce delays in the administration of justice.

“The responsibility of filling these vacancies lies with the executive,” he said, adding that the failure to do so could affect the international reputation of Sri Lanka’s judiciary.

Prof. Peiris also claimed that the Bar Association of Sri Lanka had repeatedly called for the vacancies to be filled, warning that the present developments could have an adverse impact on the country’s standing internationally.

He questioned whether it was justified to place Sri Lanka in a difficult international position to serve, what he described as, “a narrow and partisan political objective.”

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Dengue surge infects 76,000, claims about 53 lives

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The total number of dengue cases reported in Sri Lanka so far this year has risen to 76,044, with health authorities warning the public to remain vigilant amid a continued surge in infections.

The National Dengue Control Unit (NDCU) said 2,652 dengue cases had been reported on Sunday (19) alone, while 162 Medical Officer of Health (MOH) divisions across the country continue to be classified as high-risk dengue zones.

The latest figures indicate a sharp rise in dengue infections during the past few months, with 8,590 cases recorded in May, followed by 21,537 cases in June. A further 20,666 cases have been reported during the first 19 days of July.

The dengue outbreak has claimed 53 lives so far this year, with the case fatality rate standing at 0.07%, according to the NDCU.

The Western Province remains the worst affected region, accounting for 40,009 cases, or 52.61% of the country’s total infections. The Southern Province has recorded 11,707 cases (15.40%), while the Central Province has reported 6,431 cases (8.46%).

At district level, Gampaha has recorded the highest number of dengue infections with 15,910 cases, followed closely by Colombo with 15,110 cases. Of the Colombo District cases, 3,073 were reported within the Colombo Municipal Council area.

Matara has recorded 5,330 cases, Kandy 5,111 cases and Kalutara 5,010 cases.

Health authorities have urged the public to take preventive measures by keeping their surroundings clean and eliminating mosquito breeding grounds, particularly amid prevailing rainy conditions.The public has also been advised to seek immediate medical attention if symptoms such as fever develop, as early medical intervention is essential in preventing severe complications from dengue.

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SC dismisses challenge to gender change procedures

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The Supreme Court yesterday dismissed, without taking up for consideration, a Fundamental Rights petition seeking to invalidate a circular that permits individuals in Sri Lanka to change their gender legally .

The petition had been filed by retired Sri Lanka Air Force (SLAF) Warrant Officer Shantha Jayathilake, who challenged the legality of procedures allowing individuals to alter their gender designation following medical and psychiatric assessments.

Former Presidents Maithripala Sirisena and Ranil Wickremesinghe, as well as incumbent President Anura Kumara Dissanayake, were among those named as respondents in the petition.

The petitioner alleged that successive governments, including the present administration, had facilitated gender changes through medical procedures in a manner contrary to Sri Lankan law.

Jayathilake contended that the law did not permit a person to change their sex from male to female or female to male through medical intervention in the absence of a biological basis. He further argued that individuals had been allowed to alter their gender identity on the recommendation of a psychiatrist, under guidelines issued in 2016 by the then Director General of Health Services.

The petitioner also claimed that authorities had been issuing revised birth certificates and National Identity Cards to persons who had undergone gender-transition procedures, maintaining that such actions were unlawful.

However, the Supreme Court declined to entertain the application and dismissed the petition without granting leave to proceed.

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