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Sumanthiran leads MPs’ call: Postpone debt repayment now

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‘Deepening crisis cannot be addressed solely by meeting foreign loan obligations’

Tamil National Alliance (TNA) MP M. A. Sumanthiran, PC, on behalf of several political parties, represented in Parliament, has requested the government to delay the repayment of foreign debt. Jaffna District MP and the TNA spokesperson Sumanthiran said that he had launched an effort to seek a consensus with his colleagues in his former capacity as the Chairman of the Parliamentary Committee on Public Finance.  The group questioned the government strategy meant to address the deteriorating financial crisis.

The following is the text of the statement titled ‘A collective response to our economic crisis’ issued yesterday: “Sri Lanka is in the midst of an unprecedented economic crisis, causing severe hardship to all segments of our society, especially our working people and the poor.

Undoubtedly, the government has a daunting task ahead, and as a country there is a need for us all to come together to overcome this challenge.

At the same time, the government’s approach to resolving the crisis raises some serious questions. Its focus, almost solely on meeting foreign debt obligations, is draining the country of dollars needed for importing essentials for our people. The government’s emphasis on avoiding a default at any cost appears to be downplaying a fundamental question – can our people eat? After all, a country’s pride rests not only in repaying its loans, but also in ensuring no citizen goes to bed hungry.

Recognising this dire situation, a group of leaders from over half a dozen key political parties in Sri Lanka came together in a closed-door meeting on Thursday 27th January 2022, to brainstorm ways to tide over this crisis, given the responsibility we have towards the Sri Lankan people.

I approached parliamentary colleagues and party leaders, in my capacity as a former chairman of the Committee on Public Finance in Parliament. MPs came together in the knowledge that Parliament is expected to have full control of public finance, and that each MP, therefore, also has a fiduciary responsibility to ensure the proper management of public finances in Sri Lanka.

The crisis, we noted, is of a proportion that is historically unprecedented for many reasons:

(1) The country’s ratings have fallen to the level of being blacklisted in international credit markets. Since April 2020, Sri Lanka has been locked out of borrowing using International Sovereign Bonds (ISBs) in the international market

(2) Repaying US dollar debt in this context means that the usable foreign reserves are down to below one month of imports – the lowest on record since independence.

(3) The ratio of interest on debt to government revenue was above 70% in 2020, a historical high for Sri Lanka, and amongst the highest in the world.

(4) The ratio of public debt compared to the value of Sri Lanka’s domestic production (GDP) is also the highest on record, at 120%. It skyrocketed, by almost 25 percentage points, in the last two years.

Each of these situations by themselves would spell a serious economic challenge. Occurring simultaneously, they threaten our future in both the short term and long term.

In this context, the Central Bank’s policy has been to hoard the scarce dollars to pay creditors in full and on time. This has fueled a shortage of dollars for the needs of our own people, and reduced imports of essential items such as food, medicines and fuel. We see the shortage manifesting in long queues for essential items and frequent power outages. The situation will only worsen over the year, if the government does not urgently shift gear and ensure adequate dollars are available to the Sri Lankan economy.

Already, the government’s rash chemical fertilizer policy has impacted farmers across Sri Lanka, leaving us with an imminent food crisis. The government’s current policy path on debt management, as it was in the case of fertilizer policy, is exacerbating the crisis, without a sensible or viable solution in sight.

Our recent meeting provided a platform for political leaders to share the concerns of their constituencies and identify the critical issues that require urgent attention. There was wide acknowledgement that the Central Bank hoarding dollars to make lump-sum debt payments was leading to a shortage of dollars to procure essential supplies within the country. This is resulting in severe economic hardships for the people of Sri Lanka and long-term damage to the economy, while providing windfall gains to the holders of Sri Lanka’s Sovereign Bonds.

We agreed that Sri Lanka should take immediate measures to protect the poor from the adverse impact of this economic crisis, and postpone repaying its debt as a first step. Participating MPs also felt that we need sound reform to the national economic policy to address the root causes of the crisis and ensure sustainable solutions.

This group of political leaders agreed to continue engaging and working together towards ensuring justice for the people of Sri Lanka, through solutions that are sustainable. We must steer the country out of this unprecedented economic crisis, and forge an equitable and just future for our future generations.”



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Peter Magyar sworn in as Hungary’s PM, ending Orban’s 16 years in power

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Hungary's incoming Prime Minister Peter Magyar delivers a speech during his swearing-in ceremony at the Hungarian parliament in Budapest on May 9, 2026 [Aljazeera]

Peter Magyar has been sworn in as Hungary’s new prime minister, almost a month after parliamentary elections that ended Viktor Orban’s 16 years in power.

Magyar, 45, who leads the centre-right Tisza party, was propelled into office on promises of change after years of economic stagnation under Orban, and strained ties with key allies, including the European Union.

On Saturday, Magyar invited Hungarians to “step through the gate of regime change”.

His party has a huge parliamentary majority, winning 141 of the 199 seats.

However, Magyar faces several challenges in his new role, including restoring Budapest’s relations with the EU, reviving the economy and tackling a budget deficit that reached almost three-quarters of its full-year target by April.

A ceremony was held inside Hungary’s neo-Gothic parliament building as Magyar was sworn in. The EU flag, removed under Orban, was displayed inside the chamber for the first time in 12 years.

The newly appointed parliamentary speaker, Agnes Forsthoffer, used her first decision in office to order the flag’s reinstatement, describing the move as “the first symbolic step on this path [back to Europe]”.

The new prime minister aims to strike a deal with the EU that would unlock around $20bn in frozen funding. The money was withheld over concerns about worsening human rights under Orban and a decline in the rule of law.

During Orban’s tenure, Hungary drifted further away from the EU as ties with Moscow deepened. The former prime minister used his veto in the European Council to oppose sanctions on Russia and block support for Ukraine.

Theofanis Exadaktylos, a professor of European politics at the University of Surrey, told Al Jazeera that Magyar will need to prove he is different from Orban while dealing with the bureaucracy left behind by his predecessor.

“The challenges for the new PM are primarily related to the extensive presence of the previous regime. Orban was in power for such a long time and he has managed to change Hungary substantially from an administrative point of view. To that end, uprooting the previous establishment will be a challenge,” he said.

“The second [challenge] will be to establish himself as different to the previous regime. Considering his background there will be sceptic voices, however let’s not forget that ideologically he belongs to the right,” he continued.

“Nonetheless, his election marks a turning point in Hungary showcasing that the previous regime had started to lose ground in its popular basis. The third challenge is the way he will reconnect Hungary to the European Union: to that end, he has a bit of work to do from a diplomatic point of view to create new allies within the Union.”

Magyar’s rise to prime minister is widely regarded as a remarkable feat. He was largely unknown in Hungarian politics until early 2024, when he became embroiled in a public dispute with Orban’s ruling Fidesz party, of which he had previously been a prominent member.

[Aljazeera]

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Senior Sri Lankan monk arrested for alleged child sex crimes

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Sri Lankan authorities arrested the senior Buddhist monk for the alleged sexual abuse of a minor girl [Aljazeera]

A prominent Buddhist monk has been arrested in Sri Lanka for allegedly sexually abusing an 11-year-old girl, in the highest-profile case involving a local religious leader.

Authorities took 71-year-old Pallegama Hemarathana into custody on Saturday from a private hospital in the capital, Colombo, where he had checked in for treatment as a criminal probe against him progressed.

Hemarathana is accused of committing the abuse in 2022 in a highly venerated temple in Anuradhapura, where he is the chief priest.

Authorities said the victim’s mother has also been arrested for aiding and abetting the monk.

“We will be guided by the magistrate on further action,” a police statement said Saturday.

Hemarathana, who had been subject to a foreign travel ban, was detained on the orders of the chief magistrate in Anuradhapura, after child protection authorities cited complaints of delays in his arrest, reported Sri Lanka’s Daily News. It said the court instructed police to arrest Hemarathana and bring him before the court “without delay”.

There have been several cases of clergy abusing children in Sri Lanka, but the latest arrest involves the most senior monk to be accused of such a crime.

Last month, 22 monks were arrested at Colombo’s international airport after 110kg (242lbs) of cannabis were found hidden in their bags, in what was the biggest drug smuggling discovery ever in the facility.

[Aljazeera]

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Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam

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Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.

The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.

The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.

The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.

During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.

Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.

Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.

Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.

Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.

(PMD)

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