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Sri Lanka’s ambassador urges ADB and World Bank to take bigger role in debt restructure
Sri Lanka has not reached any initial agreement with the IMF on debt relief, and its largest creditors -the Asian Development Bank (ADB) and the World Bank – are urged to come up with a package that would speed up its debt restructuring process, Sri Lanka’s Ambassador to China Palitha Kohona told the Global Times in an exclusive interview.
He also called for more assistance from partners after the debt-ridden country claimed bankruptcy and imposed a state of emergency amid escalating protests and persisting shortage of daily necessities.
“The IMF visited Sri Lanka at the end of last month, and judging by the report we received, the official discussions were very satisfactory. We have appointed a team of legal advisors in London, and a team of experts who understand debt restructuring from the West,” Kohona said. But he noted that discussions with the IMF are only at a preliminary stage, and once the new government is installed, there will be a new arrangement for the next meeting with the IMF.
Kohona said it is hoped that terms and conditions attached to the IMF package will not be “onerous.”
“It’s inevitable that whenever the IMF comes along we will have to tighten our belt, but in some cases it’s difficult because the belt is already on the last notch. We’re worried that the IMF may insist that we curtail our state-funded health care system. The education system which is free from grade one to university level might be another area the IMF recommends to cut. These may add to the unrest,” Kohona explained.
Sri Lanka’s largest creditors are international financial organizations like the World Bank and the ADB, and a substantial amount is also owed to other institutional investors from the West, for example the Wall Street. While calling on those organizations to take a bigger role, Kohona also hopes more bilateral partners will provide more assistance to help the country overcome its difficulties.China and Japan each held about 10 percent of Sri Lankan debt. Kohona disclosed that about $1 billion, out of Sri Lanka’s $7 billion foreign debt obligations for this year, is due to China.
China’s Foreign Ministry spokesperson Wang Wenbin said at a press briefing on Friday that Chinese financial institutions have actively approached and negotiated with Sri Lanka after the country stopped debt repayment, expressing willingness to properly settle matured debts owed to China and help it overcome difficulties.
“China is ready to work with relevant countries and international financial institutions to continue to play a positive role in supporting Sri Lanka’s response to current difficulties and efforts to ease debt burden and realize sustainable development,” Wang said, adding that as a friend and neighbor, China has been providing assistance for its socioeconomic development to the best of our capacity.
Recently, China has announced a total of 500 million yuan ($74 million) emergency humanitarian aid to Sri Lanka. On Thursday, the second batch of emergency humanitarian grain aid – 1,000 tonnes of rice – from China was handed over to Sri Lanka.
There have been large-scale protests about the government because of the severe material and energy shortages that Sri Lanka is facing, Kohona noted. Sri Lanka faces a gap in cooking oil, fertilizer, medicine, and even food stocks, which poses a huge challenge to Sri Lankans’ basic household cooking, transportation, medical needs, and preparation for the upcoming cultivation season.
On Thursday, President Gotabaya Rajapaksa officially resigned after landing in Singapore, and Prime Minister Ranil Wickremesinghe was appointed as acting president. Wickremesinghe declared a state of emergency across the country.
Kohona noted there are still protests in Sri Lanka against Wickremesinghe, and he is not clear whether the acting president will continue to hold this office for much longer. “This is very unsatisfactory, because the leadership of the country suddenly comes into question. So we are hoping that the constitutional provisions will be followed, and elections have to be held within a specified period to elect a new president,” he said.
Sri Lanka’s parliament will vote on a new president on July 20, according to the speaker of the Sri Lankan Parliament.
Kohona said he is confident that “whatever government in power will maintain excellent relations with China.”
“China is the major trading partner and investor of Sri Lanka, we have a strategic partnership between the two countries, whoever takes over the government after an election will maintain the confidence of the Chinese government as well as the goodwill of the Chinese people,” he noted.
In recent years, Chinese-invested projects under the Belt and Road Initiative (BRI) such as the Hambantota Port have largely improved local people’s livelihood and propelled the country’s growth.
On Thursday, the Chinese Embassy in Sri Lanka held a video conference with Chinese firms in Sri Lanka, guiding them on how to strengthen security work and cope with demonstration and safety events. Kohona said there has been no threat to Chinese projects or Chinese personnel in Sri Lanka.
“BRI investments are critical in the Sri Lankan economy after the situation stabilizes. It not only brought foreign exchange, but also generated employment,” he said, adding that the embassy is encouraging a number of Chinese renewable energy companies to establish projects in Sri Lanka. (Courtesy The Global Times)
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CEBEU warns of operational disruptions amid uncertainty over CEB restructuring
The Ceylon Electricity Board Engineers’ Union (CEBEU) yesterday warned that uncertainty surrounding the ongoing restructuring of the Ceylon Electricity Board (CEB) had forced many employees to refrain from performing their regular duties, raising concerns about potential disruptions to electricity sector operations.
The engineers’ union said the current situation had arisen due to what it described as either deliberate actions or extreme negligence in implementing the restructuring process, which has created significant confusion among staff who previously served under the CEB.
According to the union, although the state power utility has been formally restructured and new companies established, a large majority of former CEB employees have yet to receive official appointment letters, confirming their positions in the newly formed entities.
“The reality is that the institution, previously known as the Ceylon Electricity Board, no longer exists in its earlier form, yet most employees, who served under it, have not been issued proper appointment letters, or related documentation, assigning them to the newly established companies,” the CEBEU said.
The union said that while some workers had been issued “assignation letters”, those documents merely indicate the institution to which an employee has been attached and do not clearly define employment conditions, responsibilities, authority, or reporting structures.
“As a result, employees currently lack the necessary legal framework confirming their employment status, their duties, the authority under which they operate, and who they are accountable to within the new institutions,” the CEBEU said.
The engineers’ union emphasised that the current crisis was not created by employees but was the direct result of, what it called, shortsighted and questionable actions taken by those responsible for implementing the reforms.
It also expressed concern that the relevant Minister, appointed through the National List, had failed to hold meaningful discussions with employees, despite having previously advocated strongly for workers’ rights.
The union said trade union action had been launched only after months of unsuccessful attempts to resolve the issues through verbal requests and written communication with the authorities.
“Despite repeated appeals made over several months, there has been no satisfactory response. Decisions appear to have been taken under the assumption that a government with a strong mandate can proceed without proper consultation,” the union said.
However, the CEBEU stressed that employees engaged in essential operations—including power generation, transmission, and distribution—continue to work in order to ensure electricity supply to the public.
“These staff members are continuing their duties under considerable risk to prevent major disruptions to the electricity supply,” the union noted.
Nevertheless, the union warned that the prevailing uncertainty could affect certain operational activities, and restoration work following breakdowns may take longer than usual.
The CEBEU appealed to the public to understand the situation and expressed regret for any inconvenience that may arise.
“We request the public to understand the situation and cooperate with us during this difficult period. We sincerely regret any inconvenience that may be caused,” the union added.
By Ifham Nizam
News
Remittances up compared to last year before outbreak of war, but the economic picture is not rosy
Sri Lanka Bureau of Foreign Employment (SLBFE) yesterday said that foreign remittances, during January and February this year, had been 32% higher than the corresponding period in the previous year.
According to a press release issued by the SLBFE, Sri Lanka received Rs 1,480.1 mn during January and February this year, whereas in 2025 the country received Rs1,121 mn during the corresponding period. During the first two months of this year, 47,819 Sri Lankans had left the country for employment abroad.
However, Prof. Priyanga Dunusinghe has warned that Sri Lanka could face a catastrophic situation due to a rapid and sharp drop in revenue caused by the escalating Gulf war. Fighting erupted on February 28 following a joint US-Israel attacks on Iran.
Appearing on Derana ‘Big Focus’ on Monday, the Professor in Economics in the Department of Economics, and Head – Department of Information Technology, University of Colombo, Dunusinghe said that that the drop in remittances from the Middle East, as well as exports, should be examined against the backdrop of runaway oil prices.
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The Netherlands alleges Russian Embassy interfering in World Press Photo Exhibition
The Netherlands Embassy in Colombo has accused the Russian Embassy of trying to limit freedom of expression and right to know in Sri Lanka. The Embassy yesterday issued the following statement: “The Embassy of the Kingdom of the Netherlands’ attention has been drawn to the attempts by the Russian Embassy in Colombo to deny the people of Sri Lanka’s right to information and freedom of expression by demanding photos related to “Russia’s war of aggression” on Ukraine be removed from the World Press Photo exhibition, currently on display in Sri Lanka.
The 2025 edition of the World Press Photo Exhibition was officially opened by Dr Kaushalya Ariyaratne, Deputy Minister of Mass Media, and Wiebe de Boer, Ambassador of the Kingdom of the Netherlands on February 27, 2026, at One Galle Face. The same exhibition will be held in Kandy from 13 to 17 March 2026 at Sahas Uyana.
The Ambassador of the Russian Federation to Sri Lanka visited the exhibition during the weekend of March 7 and 8 and demanded the photographs, related to “Russia’s war of aggression on Ukraine,” be removed from the exhibition, and threatened to stage a protest if the organisers failed to do so.
The exhibition is jointly organised by the Netherlands Embassy, along with the Sri Lanka Press Institute, and the World Press Photo Foundation in the Netherlands.
Continuing the same demand, the Russian Embassy has now approached the Sri Lankan Ministry of Foreign Affairs to remove the said photos from the exhibition in Kandy. The same exhibition is currently underway in the USA and Germany and is showing all around the world in dozens of countries with freedom of expression.
The photos, including the photos that the Russian Embassy in Colombo wanted to hide from the Sri Lankan citizens, are also available online on the World Press Photo website for free for anyone to access them.
The Embassy of the Kingdom of the Netherlands deplores the attempts by any party to compromise people’s right to know and right to freedom of expression. It also amounts to a violation of the host country’s sovereignty if an Embassy attempts to decide what and which content its citizens should see and not. While we, as the Embassy of the Kingdom of the Netherlands, assure the Sri Lankan public that as our commitment to protect press freedom and respect for editorial integrity, we will continue the exhibition in Kandy with its full content without censoring any photos of the exhibition.
The exhibition is open to the public, free of charge, from 10.30am on Friday, March 13, till March 17, at Sahas Uyana in Kandy.”
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