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Sri Lanka’s ambassador urges ADB and World Bank to take bigger role in debt restructure

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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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Cabinet nod to obtain additional financial facilities from the world Bank for the General Education Modernization Project (GEM)

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The Education Modernization Project (GEM) has been implemented since 2018 with funding of US$ 100 million supplied by the World Bank.

All the project components identified under this project have been implemented and have achieved the expected results. It has been observed that there is the ability to obtain an additional financial facility of US$ 50 million from the funds remaining in other projects to implement several components identified under this project. These additional funds are expected to improve the digital infrastructure of the school relevant to the new educational reforms scheduled for implementation in 2026, enhance the sanitary facilities of the selected 900 schools across all provinces, appraise reformed subjects, and implement professional development programs for teachers.

Accordingly, the Cabinet of Ministers has approved the proposal presented by the  Prime Minister in her capacity as the Minister of Education, Higher Education, and Vocational Education to reach a consensus with the World Bank to obtain the proposed additional financing.

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Committee to monitor utilization of Rs 5000/- allowance provided for children at Child development centres

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Institutional care is provided to children who have lost both their parents or guardians or are under the guardianship of one or both parents but  there is no protection or security in the homes they are living in, as well as to orphaned and abandoned children in detention centers or child development centers.

It has been reported that there are about 9,191 children in the residential care of 356 children Development Centers that are maintained by the government, voluntary organizations, and non-governmental organizations throughout the country as at the end of 2024.

A provision of Rs. 1,000 million has been allocated by the budget for 2025 to provide a Rs. 5,000 /-allowance monthly for the children or street children who are in institutional care or guardianship.

Accordingly, the Cabinet of Ministers has approved the proposal presented by the Minister of Women and Child Affairs to appoint a monitoring committee chaired by the Secretary to the Ministry of Women and Child Affairs, comprising officers from other relevant institutions for the necessary guidance and post-review activities to continue this program sustainably and effectively, and to provide the aforementioned allowance in the following manner.

• Out of the Rs. 5,000 allowance, Rs. 3,000/- will be made available through the National Savings Bank to the development center where  the child is  or the  guardian,  for the education, health, and other welfare expenses that should be provided by them through the National Savings Bank.

• The balance amount of Rs. 2000/- should be deposited monthly in a savings account in the child’s name at the National Savings Bank for his / her  future well-being.

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Cabinet gives green light to formulate a national policy for the rehabilitation of child offenders

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The primary objective of the child rehabilitation process is to identify the disruptive behaviour of a child who becomes a criminal before the law and to enable him or her to live as a law-abiding citizen in society.

Accordingly, when taking action against a child who has become a criminal before the law, mediation, admonition and release, conditional release, probation for child offenders who can be rehabilitated in the open environment, rehabilitation under Community Correctional Service, and detention in correctional
centers are carried out depending on the nature of the offense.

It has been identified that the economic and social background of children who become criminals before the law and family background should be studied, and the rehabilitation of such children should be carried out in accordance with the accepted national policy.

Accordingly, the Cabinet of Ministers has approved the proposal presented by the Minister of Women and Child Affairs to draft “The national policy for the rehabilitation of child offenders” with the contribution of the government, other stake holders, and the United Nations Children’s Fund (UNICEF).

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