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India extends USD 900 mn facilities as Sri Lanka struggles to repay loans

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As Sri Lanka is struggling to repay a US$ 500 million international sovereign bond (ISB) by the 18 January deadline whilst running short of reserves to purchase essential needs of the country, the Reserve Bank of India (RBI) will extend over US$ 900 million facilities to Sri Lanka, comprising Asian Clearing Union (ACU) settlement of over USD 500 million and currency Swap of USD 400 million.

Indian High Commissioner to Sri Lanka Gopal Baglay yesterday communicated this message to Sri Lanka’s Central Bank Governor Ajith Nivard Cabraal when the duo met at the latter’s office, according to the official Twitter handle of the CBSL Governor.

The Indian High Commissioner noted during the meeting that the steps were in line with India’s strong commitment to standing with Sri Lanka for its economic recovery and growth.

Governor of the Central Bank Ajith Nivard Cabraal tweeted yesterday that he had had a fruitful discussion with the Indian High Commissioner where he had confirmed a SAARC Swap by the Reserve Bank of India (RBI) and other forms of bilateral cooperation.

“Sri Lanka is at a decisive moment in raising overseas funds without going to the IMF so this signifies a positive development in mobilising funds from Sri Lanka’s friendly countries to tide over its current reserves crisis,” an analyst told The Island.

On 11 January, Vice President of ADB Shixin Chen met with the CBSL Governor where they had discussed ADB’s future programme in Sri Lanka, their Country Assistance Strategy and the upcoming ADB AGM to be held in Colombo in May 2022.

Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks. A Swap is a contract through which two parties exchange the cash flows from two different financial instruments.



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Ten-Year National Action Plan on the Social Protection Sector (2026–2035)

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Approval has been granted at the Cabinet meeting held on 22-07-2024 for Sri Lanka’s National Social Protection Policy.

The National Social Protection Strategy was presented to the Cabinet meeting held on 2025-09-15 to practically implement the aforementioned policy, and the Cabinet of Ministers has
determined to order all secretaries to the ministries to take necessary steps to act in accordance with the aforementioned strategy.

The mentioned National Social Protection Strategy is based on four main pillars: social subsidies, social protection, social insurance, the labor market, and productive inclusion.

Accordingly, the National Action Plan (2026-2035) on the social protection sector has been prepared as a tool for the practical implementation of the said strategy. Accordingly, the Cabinet of Ministers has approved the joint resolution furnished by the Minister of Labour, Minister of Women and Child Affairs,
and Minister of Rural Development, Social Protection, and Community Empowerment to implement the National Action Plan on the Social for the Social Protection Sector (2026-2035) in line with the National Social Protection Strategy.

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Implementation of Revised National Curriculum Framework under the Education Reforms

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Approval has been granted at the cabinet meeting held on 01-03-2023 for the National Curriculum Framework and the methodology for implementing the aforementioned framework, which was initiated by the National Institute of Education in 2019 under the education reform process.

However, considering the modules relevant to Grades 1, 6, and 10 that have been prepared by the National Institute of Education for the implementation of the new education reforms by the time the new government comes into power in 2024, it was planned to implement the new National Curriculum Framework only for Grades 1 and 6 in 2026, ensuring appropriate adjustments to the new government’s policies.

Further, it has also been planned to introduce vocational subjects from grade 10 onwards.

Accordingly, the concept paper required for ‘Transformational Change in Sri Lanka’s General Education’, which has been prepared to inform and make relevant parties aware of the proposed adjustments, has also been submitted to the Parliamentary Subcommittee on Education Reforms on 22-10-2025.

Subsequently, as decided at the Cabinet Meeting held on 13-01-2026, steps have been taken to postpone the implementation of education reforms for grade 6, which had been planned under the first phase of the comprehensive reform agenda for general
education, up to the year 2027, and only to implement new curriculum reforms for grade 1 in the year 2026.

Subsequently, the Ministry of Education, Higher Education, and Vocational Education has followed these steps.

• preparing a new concept paper with policy recommendations after reviewing the concept paper prepared related to bringing about transformational change in Sri Lanka’s general education
by the National Education Commission.

• Having reviewed the revised concept paper by the National Steering Committee established as per the cabinet decision dated 23-03-2026 and subcommittees established under 5 pillars
relevant to the education reforms-namely Curriculum Reform, Human Resource Development, Education Administrative Reforms & Infrastructure Development, Evaluation & Assessment, and Public Awareness & Promotion-and obtaining further observations and recommendations.

• Based on those observations and recommendations, further revising the National Curriculum Framework prepared by the National Institute of Education in 2023 and obtaining approval
from the Academic Affairs Board of the National Institute of Education.

• Obtaining approval from the Council of the National Institute of Education for the National Curriculum Framework approved by its Academic Affairs Board.

• Obtaining concurrence from the National Steering Committee for New Education Reforms on 2026-08-13 for the National Curriculum Framework approved by the Council of the National Institute of Education.

• Printing and preparing activity books and teacher guides for all 3 terms of Grade 1 and Grade 2 for the year 2027, so as to continue carrying forward the primary education reforms
commenced in the year 2026.

• Preparing Grade 6 modules for Terms I, II, and III, as well as teacher guides for all 3 terms.

• Master trainers have been trained by the National Institute of Education for all primary and secondary subjects, and all plans related to teacher training at the provincial level have been
prepared.

• Formulating the policy guidelines on school-based evaluation and assessment—prepared for practical implementation while managing available resources within the school system by the
Evaluation and Assessment Sub-Committee and obtaining the approval of the National Steering Committee.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Hon. Prime Minister in her capacity as the Minister of Education, Higher Education, and Vocational Education to further implement the education reform process for grade 1, which has been initiated in the year 2026,
and to further initiate the education reform process for grade 2 and grade 6 in the year 2027, based on the concept paper prepared by the National Education Commission, the National Curriculum Framework approved by the National Steering Committee for New Education Reforms, and the School-Based
Evaluation and Assessment Guideline.

 

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PAFFREL raises concerns over Anti-Corruption (Amendment) Bill

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Anura and Rohana

Executive Director of People’s Action for Free and Fair Elections (PAFFREL) Rohana Hettiarachchi yesterday (28) said that there were three major concerns regarding the Anti-Corruption (Amendment) Bill 2026. Acknowledging the recent Supreme Court determination, in respect of the above-mentioned Bill, that three of the provisions were not consistent with the Constitution, requiring a special majority in Parliament, with one clause requiring approval by the people at a Referendum, Hettiarachchi said nonetheless PAFFREL had decided to bring their concerns to the notice of President Anura Kumara Dissanayake.

Responding to The Island queries, Hettiarachchci said that PAFFREL sent a letter, dated 24 Sept., to President Dissanayake, regarding the issue at hand.

Petitions against the Bill was heard before a three-judge Bench of the Supreme Court, comprising Justices Shiran Gooneratne, Mahinda Samayawardena and Sampath Wijeratne.

PAFFREL and Transparency International Sri Lanka (TISL) were among the petitioners who challenged the proposed amendments to the Anti-Corruption Act No. 9 of 2023. “We did so in public interest,” Hettiarachchchi said, adding that three major concerns were (i) the breadth of the proposed redaction power and the proposed criminalisation of certain uses of publicly accessible redacted asset declarations, particularly in relation to freedom of expression, and the public’s right to meaningfully receive and impart information (ii) raising of the State or public-corporation shareholding threshold for certain asset declaration obligations from 25% to 50%, as this could exclude officers of State-linked entities in which the State holds less than 50%, in spite of such entities exercising public functions and managing public resources and (iii)role of the Director General Ranga Dissanayake.

Hettiarachchchi emphasised that though the PARREL appreciated the way CIABOC DG handled his responsibilities, centreing of power on one person was not acceptable.

Hettiarachchi urged President Dissanayake and the 159-member government parliamentary group to pay attention to concerns raised by those who moved court against the controversial Bill and address their concerns though the Parliament received the SC determination.

An International Monetary Fund mission that visited Colombo recently warned that the proposed amendments could weaken the country’s anti-corruption framework.

The mission, led by Evan Papageorgiou, was in the country from 10 to 23 September for discussions on the seventh review of the Extended Fund Facility and the 2026 Article IV consultation. (SF)

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