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Talks planned for India to restructure $1.3-billion credit line to Lanka

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Indian High Commissioner Gopal Baglay Friday called on new Prime Minister Ranil Wickremesinghe to personally extend his and his county’s good wishes and reiterate support. Post the closed door meeting Baglay in a tweet said “discussed continued India-Lanka cooperation for economic recovery and stability in Sri Lanka through democratic processes towards the well being of all the people of Sri Lanka.”

BY S VENKAT NARAYAN     

Our Special Correspondent

 NEW DELHI, May 14: India will hold talks with Sri Lanka for restructuring the island nation’s $ 1.3 billion Line of Credit (LoC), seeking to assist its southern neighbour battling a severe economic crisis.

The Indian government backs the LoC from Export Import Bank (EXIM Bank).

The exact terms of the loan will be finalized in talks that the Indian government will conduct and the EXIM Bank will participate in.

Repayments on credit have been done till the end of March 2022. The restructuring is likely to involve deferment on repayment principal, said sources in EXIM Bank.

In February 2022, India’s EXIM Bank and Sri Lanka’s government signed a $500-million LoC agreement to help Colombo to cope with its current fuel shortages.

India said this week it is “fully supportive” of Sri Lanka’s democracy, stability and economic recovery, responding after that country’s Prime Minister Mahinda Rajapaksa quit amid massive protests against the raging economic crisis.

On April 12, the Sri Lankan government said it will suspend debt servicing on its foreign-currency obligations amid steeply rising external funding pressures.

Standard & Poor’s has downgraded Sri Lanka’s long-term foreign currency sovereign credit rating to ‘SD’ (selective default) from ‘CC’.

Meanwhile, EXIM Bank has posted a 190.5 per cent increase in net profit at INR7.38 billion on FY22 from INR2.54 billion in FY21. Its loan book grew by 13.26 per cent Year on Year to INR1.17 trillion at the end of March 2022. The capital adequacy improved to 30.49 per cent in March 2022 from 25.89 per cent a year ago.

EXIM Bank Managing Director Harsha Bangari said the bank raised foreign currency resources aggregating $2.05 billion and rupee resources aggregating INR190.46 billion in FY22.

In FY23, the institution plans to raise about $3 billion, depending on the market conditions. About $1-1.5 billion will be raised by issuing long-term securities and balance through short-term loans. The domestic borrowings will be around INR200 billion in 2022-23, Bangari said.



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Xi and Putin confirmed for November’s G20 summit in Bali

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Chinese and Russian Presidents Xi Jinping and Vladimir Putin have both confirmed they will attend the G20 summit on the resort island of Bali this November, according to President Joko Widodo.

“Xi Jinping will come. President Putin has also told me he will come,” Widodo told Bloomberg News in an interview, confirming their attendance for the first time.

The November summit will mark the first time that Putin, Xi and United States President Joe Biden will have met in person since Russia invaded Ukraine in February, triggering sanctions from Western countries, as well as G20 members Japan and South Korea. China has avoided condemning the attack, or joining the sanctions, which took place days after Beijing and Moscow announced a “no limits” partnership.

A longtime adviser to the Indonesian President also confirmed Putin and Xi would attend the summit.

“Jokowi told me that Xi and Putin are both planning to attend in Bali,” Andi Widjajanto, who heads the National Resilience Institute, told Reuters news agency.

The Kremlin said in a statement that Putin and Widodo had discussed preparations for the G20 summit in a phone call on Thursday without confirming that the Russian leader would attend. Another official, familiar with the situation, told Bloomberg that Putin plans to attend the meeting in person.

The Chinese Foreign Ministry did not immediately respond to a Reuters request for comment.A trip to Bali would be significant given it would be Xi’s first time outside China since the start of the pandemic, in early 2020.

China has maintained a strict zero-COVID policy that has all but sealed its borders, and Xi is preparing to secure an unprecedented third term as President during the congress of the ruling Communist Party, which is expected to take place in late October or early November.

Chinese officials are also thought to be making plans for a meeting in Southeast Asia between Xi and US President Joe Biden, who will also be in Bali, according to Wall Street Journal, amid rising tension between the two countries.Beijing, this month, held large-scale military drills around self-ruled Taiwan and cut off cooperation with the US over issues, including climate, after House Speaker Nancy Pelosi visited the island, which Beijing claims as its own.

As head of the G20 this year, Indonesia has faced pressure from Western countries to withdraw its invitation to Putin because of the invasion of Ukraine, which he has called a “special military operation”.

Indonesia has also invited Ukrainian leader Volodymyr Zelenskyy to the Bali summit.Widodo has sought to position himself as a mediator, and, at the end of June, travelled first to Moscow and then to Kyiv to meet both Presidents and urge an end to the war.This week, he said both countries have accepted Indonesia as a “bridge of peace”.

Source: Al Jazeera

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Aid should come with clear-cut conditions so as to preserve democracy – Cardinal Ranjith

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Archbishop of Colombo, Malcolm Cardinal Ranjith, on Thursday, said that Sri Lanka needed aid but with clear-cut conditions to preserve democracy, the rule of law, honesty and safeguard human rights.The prelate said that Sri Lanka had suffered a serious erosion of democracy, which had been caused by three factors.

“The first one is the gradual deterioration of the rule of law and the interference of political leaders in the judiciary, which has made justice a non-issue for our people. So, we want that to be rectified. Secondly, the corruption levels of our political system are very high, and only a few people — or rather a few families — have been earning endlessly, while many families are in dire poverty. So, this corruption must stop, and an effective means of controlling it must set up. Thirdly, human rights violations are on the rise, and the more people protest, the more oppressive the governments have become. So, there are a lot of unanswered issues,” he said.

Cardinal Ranjith said that they want the international community to pressurize the government to ensure that these errors are corrected and they ask that aid be given to us in a way that corruption doesn’t occur anymore.

The Archbishop of Colombo added that Sri Lanka is suffering because of wrong policies and wrong economic management. Sri Lanka is in a serious financial crisis, and many people are unemployed or underemployed.

“As a result, they have no income for their families. This has affected the general population. Besides that, there are also other questions: industries have all collapsed, we have huge debts to be paid to other countries for useless projects that had been promoted by the previous governments, more for personal enrichment than for the people’s development,” he said.

The Cardinal said that Sri Lanka does not know how to repay its debt and the national income and the production capacity of the country has fallen. Therefore the country can’t ensure the basic needs of the people, like electricity, coal to run the power generators, and diesel and petrol needed by farmers, fishermen and other people to run their businesses, he said.

Speaking to the Vatican Daily about the victims of the Easter Sunday attacks, the Cardinal said that the victims and the families still need economic, physical, medical and psychological support.

“So, we continue to take care of these needs as much as we can. After the attacks, there was an outpouring of charity from all over the world. So we created a special fund, and some of that money is still available, and we will continue to look after these people even in the future,” he said.

However, the question of justice still remains and the church is still waiting to know the truth behind these attacks. For the victims, it is a more serious question, he said.

“Because they want to know who and why this happened to them. 269 people died in the blasts and then three policemen were killed in another blast as they went to arrest some people involved, which brings the total to 272. So we need answers to these questions, regarding the entire attack: who was really behind it, and why it was carried out. Until we get clear answers on this, our people will not be satisfied,” he said.

The Cardinal also thanked Pope Francis for – ‘out of his own volition’ – giving 100,000 Euros to support some 400 families who were affected by the Easter Sunday church bombings which claimed 269 lives.

“When I came to Rome and met His Holiness, in February this year, he asked me about the welfare of these people, how they are faring and expressed his concern for their needs. So, on his own initiative, he asked me whether he could help us financially, and I said, okay, we are very grateful to him for that. He asked me how much. I said: “Whatever you give, will be welcome”. Then he told me that he had a donation from somebody amounting to €100,000 Euros and that he would give me €50,000. He asked me for the account number of our diocesan funds which I gave to him and when I went back in April and checked the account, I found that he had credited €100,000 Euros to our account. He had given the full amount. I found that he was extremely helpful to our people and we are very grateful to him for that, for the concern and for the constant attention that he has been paying to the needs of these people,” he said.

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Sri Lanka to woo greater number of Indian tourists

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Sri Lanka’s tourism officials, conscious of the dire need to shore up their country’s economy, plan to woo a greater number of Indian tourists, who constitute the single largest segment of foreign tourists, through new packages such as the Murugan-Shiva Shakthi trails. Their optimism stems from the fact that there is a proposal to resume air passenger services from the Palaly airport, in Jaffna, to destinations in the southern part of India.

As part of the Murugan trail, two important places — Nallur Kandaswamy or Murugan temple in Jaffna of the Northern Province, and Kataragama of the Uva Province in the southeast — have been included.

Referring to the ongoing 25-day-long festival in Nallur (which concludes on August 27), Chalaka Gajabahu, Chairman of the Sri Lanka Tourism Promotion Bureau, told a group of journalists, from India, recently, in Colombo, that the festival was expected to draw over a million devotees, including 1,00,000 from the diaspora. A “special calendar” of events was being prepared for Hindu devotees.

Promoting the North

To a query whether the Northern Province would be a regular feature in the packages for tourists, Mr. Gajabahu replied in the affirmative and asserted “we have been actively promoting the North on trade FAMs [familiarisation trips].” The East, too, would receive more focus in view of its diverse cultural significance that encompassed Islam. However, he conceded that marketing of the North had not been done “much.”

The question was raised, in the context of coverage of Naguleeswaram in Jaffna and Thiruketheeswaram in Mannar, both coming under five abodes of Lord Shiva in Sri Lanka, in the new Murugan trail. The other three abodes included Thirukoneeswaram temple, Trincomalee, in the Eastern Province, Munneeswaram temple in the north-west and Tondeeshwaram temple, near Matara, in the south. The trail would also include shrines such as Nagapooshani Amman temple and Nagadeepa Purana Vihara, both in Nainativu, off Jaffna.

 

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