Connect with us

News

Some creditors of Sri Lanka seek debt restructuring deal excluding China, reports Bloomberg

Published

on

Some of Sri Lanka’s official creditors are advocating for a debt restructuring agreement that excludes China, Bloomberg reported on Thursday (28.) This move, if successful, could have implications for how wealthier nations handle financial stress in developing economies.

The proposal involves major creditors, including the US, Japan, and India, signing a memorandum of understanding with Sri Lanka around the time of the upcoming International Monetary Fund (IMF) and World Bank meetings in Marrakesh, Morocco next month, according to anonymous sources. China, holding approximately 10% of Sri Lanka’s external debt as of last year, is not part of this creditor group and is engaged in separate bilateral talks.

The plan is to develop a draft outline, excluding China, and gain Sri Lanka’s consent before the Marrakesh meetings. However, some internal disagreements within the creditor group persist.

An official from the Paris Club, one of the significant debt holders, told Bloomberg that a timeline for the agreement is yet to be confirmed. There was no immediate response from the IMF’s Colombo office, Bloomberg said.State finance minister, Shehan Semasinghe, noted that all creditors are engaging positively.

Bloomberg reports it remains unclear whether this move indicates a loss of patience with China or serves as a negotiating tactic to encourage Beijing’s participation. Sri Lanka’s debt restructuring is viewed as a test case for Chinese involvement in sovereign debt restructuring.

Proceeding without China, as the world’s largest sovereign creditor, would be a setback for global efforts to persuade President Xi Jinping’s government to participate in a new international system providing relief to indebted countries, Bloomberg said.

This comes amid a backdrop of pandemic-induced debt challenges, a strengthening US dollar, and rising US interest rates, leaving many economically vulnerable nations in need of international assistance.



News

Navy seize an Indian fishing boat poaching in northern waters

Published

on

By

During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.

The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.

Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.

The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.

Continue Reading

Latest News

Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

Published

on

By

Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.

Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.

The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.

Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.

Continue Reading

News

CEB demands 11.57 percent power tariff hike in first quarter

Published

on

The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.

According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.

Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.

The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.

In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.

The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.

The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.

Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.

By Sujeewa Thathsara ✍️

Continue Reading

Trending