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Lankan economic don in Australia explains tough road ahead with commercial creditors

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Premachandra Athukorala

By Rathindra Kuruwita

Bilateral creditors will never reduce the face value of the money they have lent and that the only concession Sri Lanka will receive will be lowering of interest rates, Professor of Economics at the Australian National University Premachandra Athukorala has said.

“They can also assist Sri Lanka by extending the period where debt has to be repaid,” he said.

“Let’s look at Zambia and Ghana, two countries that recently concluded debt restructuring. Bilateral creditors only provided concessionary interest rates and loan repayment periods. They will never reduce the face value of the loans,” he said.

Ghana has received about a 37% haircut from bondholders with 5% interest on new bonds from 2024 through July 2028 and 6% interest thereafter until 2035.

“Sri Lanka still can’t borrow from the international financial markets although an agreement with bilateral creditors has been made,” he said. An agreement must be reached with commercial creditors before Sri Lanka can resume borrowing.

“Pakistan has a much larger debt burden but it didn’t default like Sri Lanka. This is because they went to the IMF, before things really went bad, and signed a stand-by agreement. IMF’s Stand-By Arrangement (SBA) was created in June 1952 to provide financing to countries requiring help with balance of payments problems. The SBA has often been used by member countries and is the dominant lending instrument of the IMF, especially for emerging market countries,” he said.

Athukorala said that Zambia had benefited from a haircut of 21 percent after four-year negotiations. On the other hand, Ghana received a 37 percent haircut.

“It’s fascinating to study why different countries end with different haircuts. The simplest reason I can give is that you can get bigger haircuts if the debt restructuring process drags on. Zambia took about four years to restructure debt. On the other hand, Ghana had better leadership and a better plan and they finished the process in 18 months,” he said.



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Gender inequality is not a women’s issue, it is a societal issue that demands attitudinal and behavioural transformation. – Prime Minister

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“For countries like Sri Lanka, collaborative efforts like THRIVE are essential in ensuring gender parity and eliminating gender-based violence”

The Prime Minister made these remarks while attending the official launch of ’THRIVE- Together for Her: Resilience-building, Inclusivity, and Voices for Equality in Sri Lanka’, held on Tuesday [25 March] at the Australian High Commission in Colombo which was jointly hosted by the High Commissioner of Australia, UN Women, and Chrysalis.

THRIVE is a five-year initiative implemented by UN Women and Chrysalis, and funded by the Government of Australia. This project contributes to achieving Outcome 6 – “Gender Equality and Women’s Empowerment” – of the UN Sustainable Development Cooperation Framework for Sri Lanka 2023-2027, which has been co-signed by the Government of Sri Lanka and the United Nations, guiding the work of the UN system in Sri Lanka.

The project aims to advance gender equality and women’s empowerment in Sri Lanka by strengthening the economic and social resilience of marginalized women to navigate and recover from crises, insecurity, and the impacts of climate change aiming women with disabilities, women-headed households, and women in the plantation sector across six districts – Mannar, Kilinochchi, Nuwara Eliya, Badulla, Moneragala, and Colombo.

Delivering the keynote address, Prime Minister Amarasuriya emphasized the need for structural and attitudinal change for ensuring gender parity and eliminate violence against women.

“Sri Lanka ranks high on the Human Development Index, with a literacy rate exceeding 92%, and over 60% of university students being women. However, only 35% of women participate in the paid workforce. It is necessary to find ways and means to ensure that women have opportunities to contribute towards the economy through employment opportunities and equal pay with given a dully acknowledge and recognize unpaid work and unpaid care work, which are often disproportionately carried out by women.

The Parliament of Sri Lanka adopted the Women Empowerment Act in 2024 which includes the establishment of an independent National Commission on Women to oversee women’s rights, and to create of a National Fund for Women. The administrative process for appointing the Commissioners is currently underway.

Further, as a government, we have implemented several benefits for women and young women under the national budget. As Minister of Education, I can confidently say that we have allocated funds to ensure children from marginalized communities have access to education including providing free uniforms, shoes, sanitary facilities, meals, books, and a stipend, ensuring that no child drops out due to economic barriers.

However, it is statistically proven that the 90% of women faced sexual harassment in public transport at least once in their lifetime and the Global Gender Gap Index of Sri Lanka lists at 122 among 146 countries that marks gender disparity is not just a women’s issue. It is a societal challenge that transcends gender, race, religion, and age.

Moreover, new threats are emerging. While digital tools offer great potential for development and technological advancement, they are also being misused to silence women, amplify biases, and fuel harassment. It is essential to create an inclusive digital space where everyone—regardless of gender, race, religion, or age—has equal opportunities to thrive in the digital age. The government remains committed to closing the gender digital divide and ensuring that women, especially young women, can participate independently in the digital economy.

Gender inequality is not a women issue, it is a societal issue that demands policy change, education, attitudinal and behavioural transformation. For countries like Sri Lanka, collaborative efforts like THRIVE are essential in creating a future where all women have equal opportunities to thrive.”

The event was attended by the Australian High Commissioner to Sri Lanka, Paul Stephens; UN Women Deputy Regional Director for Asia and the Pacific, Ms. Maria Holtsberg; United Nations Resident Coordinator, . Marc-Andr Franche; and other esteemed dignitaries.

[Prime Minister’s Media Division]

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Ambassador of the Czech Republic meets Sri Lankan PM to strengthen bilateral relations

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The Ambassador of the Czech Republic to Sri Lanka, Ms. Dr. Eliska Zigova,  met with Sri Lanka Prime Minister,  Dr. Harini Amarasuriya, at Temple Trees on Tuesday [25th of March]. The meeting underscored the longstanding friendship between the two nations and explored avenues to enhance bilateral cooperation.

Prime Minister Amarasuriya welcomed Ambassador Zigova and acknowledged the Czech Republic’s continued support for Sri Lanka. In response, Ambassador Zigova commended the new government’s commitment to democratic governance and holding two peaceful elections, reflecting political stability and public trust.

Discussions during the meeting focused on strengthening diplomatic and economic ties. Ambassador Zigova emphasized the importance of existing agreements and reiterated her government’s willingness to expand collaboration in key areas. Particular attention was given to discuss the posibility of signing a Memorandum of Understanding (MoU) on science and education, aimed at building academic partnerships, research collaboration, and knowledge exchange between institutions in both countries.

Prime Minister Amarasuriya highlighted the “Clean Sri Lanka Programme,” a nationwide initiative dedicated to environmental conservation and urban sustainability. Additionally, the two dignitaries discussed prospects for enhancing tourism, with the Prime Minister inviting more Czech visitors to experience Sri Lanka’s cultural heritage, natural landscapes, and growing eco-tourism sector.

The meeting was attended by senior officials from the Embassy of the Czech Republic to Sri Lanka. The Sri Lankan delegation included  Pradeep Saputhanthri, Secretary to the Prime Minister, and P.R.S.S. Gunaratna, Director General of the Europe & North America Division at the Ministry of Foreign Affairs.

[Prime Minister’s Media Division]

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Two HC judges withdraw from hearing Krrish case

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Namal

Alleged criminal misappropriation of Rs 70 mn:

Colombo High Court judges Manjula Thilakaratne and Sujeewa Nissanka yesterday (27) withdrew from hearing Krrish case involving SLPP National Organiser Namal Rajapaksa.

The Attorney General in late January this year filed indictments against Rajapaksa. The former minister has been accused of criminal misappropriation of Rs. 70 mn provided by Krrish Group for the development of rugby in Sri Lanka.

HC judge Thilakaratne declared his withdrawal from the case having referred to certain comments directed at him on social media. The judge said that his decision was influenced by comments made by journalists Poddala Jayantha and Sanath Balasuriya.

Subsequently HC judge Sujeewa Nissanka, too, declared his intention to quit.

The case would be called before Colombo Chief High Court Judge Adithya Patabendige on May 21 to name a suitable judge for the case to be referred.

The Krrish deal was first investigated by the yahapalana government.

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