Author: TELO Admin

The International Monetary Fund (IMF) said that it is currently evaluating the terms of the proposed debt restructuring program for Sri Lanka.

Julie Kozack, Director of the Communications Department at IMF said that an IMF team is evaluating the proposal to ensure they align with the established guidelines of the IMF-supporter program for Sri Lanka.

She said that the IMF is closely monitoring the recent developments regarding Sri Lanka’s debt discussions.

On the 3rd of July, Sri Lanka and the creditors Steering Committee reached agreement on the terms for a $12.5 billion bond restructuring, bringing the South Asian nation closer to completing its debt overhaul two years after it defaulted.

The Steering Committee comprised ten major bondholders representing 50% of the ISBs.

Kozack revealed that the IMF team is currently evaluating the terms of the proposed debt restructuring to ensure they align with the established guidelines of the program.

Once this assessment is finalized, the IMF will express its official stance on the matter.

Despite environmental concerns raised over the Adani green energy project in the north, the Power and Energy Ministry is insistent that the project site cannot be compromised but only steps for mitigation of damage can be taken, according to a top source.

Adani Green Energy’s wind energy project, coming up in Mannar and Pooneryn districts, has been challenged in the Supreme Court on grounds of potential environmental impact and ‘lack of transparency’.

Sri Lanka Sustainable Energy Authority has sought environmental clearance for the project which is coming up across the Central Asian Flyway which brings one million birds of 150 species to Mannar.

However, a top official of the Ministry said this is the location with the highest potential for wind energy, and therefore it cannot be compromised no matter what. However, he said steps would be taken for mitigation of damages on migratory bird paths, their habitats and breeding patterns.

“We are open for steps to be taken to mitigate the damage. Still, it is difficult to compromise the project site since it is the place with the highest potential,” he said.

India’s Adani Group plans to invest over US $ 1 billion in setting up projects in Sri Lanka through Adani Green Energy Ltd. The projects include two wind farms in Mannar town and Pooneryn areas with a total capacity of 484 megawatts.

Environmental clearance has been sought to set up 52 wind towers. Sri Lanka has set a goal to have 70 percent of its electricity generated by renewable energy sources by 2030, and achieve carbon neutrality in electricity generation by 2050. A currently untapped resource for the country that can help achieve these goals is offshore wind. Sri Lanka needs to add an estimated 11,000 MW to its power grid within the next two decades to meet growing demand, according to the World Bank.

Sri Lanka has the capacity for 27GW of fixed offshore wind in shallow waters, defined as less than 50 meters, and for 29GW of floating offshore wind in deeper waters.

Asked about the current status regarding the environment, a source from the Central Environment Authority (CEA) said public consultation on the basic study had been completed, and a committee had been appointed for technical evaluation at the moment.

“There are various suggestions for mitigation,” the source said on condition of anonymity.

Sri Lanka’s Cabinet of Ministers has observed an irrelevancy with regard to the President’s and Parliament’s term as per articles 30 (2), 62 (2), and 83 (b) of the Constitution.

The Department of Government Information, said that in order to avoid any suspicion and any inconsistency in this regard, the Cabinet of Ministers granted approval to the resolution furnished by the President to prepare a draft bill relevant to Constitutional reforms for the amendment of the Article 83 (b) of the Constitution by substituting the clause “exceeding five years” instead of the clause “exceeding six years”.

The Freedom Peoples Congress (FPC) led by MP Dullas Alahapperuma, a breakaway faction of the ruling Sri Lanka Podujana Peramuna (SLPP), will join an alliance led by the main opposition Samagi Jana Balawegaya (SJB), MP Charitha Herath said.

Herath told reporters in Colombo on Wednesday July 10 that the FPC’s discussions with the SJB have been successful and the group intends to join the “mainstream” opposition as part of a broader alliance.

“A very decisive presidential election is likely to be held this November. Our talks with the main opposition SJB have been very successful. So we believe we will be able to join the opposition mainstream over the next few weeks to bring about a broad political change,” said Herath.

The SJB will be fielding its own presidential candidate, the MP said, and will be backed by a “strong” team and manifesto.

“We have been discussing this for a long time. The country is on the verge of an election. Our talks with the SJB have been successful. We expect to face the presidential election inside a broad political force.

“We believe the opposition’s main programme can be carried forward inside a new political culture and political programme.

“In this presidential election, we will put one person forward as the candidate as well as a strong team and programme before the country and win,” said Herath.

Asked if he can confirm that the Alahapperuma group will definitely join the SJB-led alliance, the MP said: “Yes, it is guaranteed.”

A faction of the FPC led by SLPP dissident G L Peiris had already joined the SJB in December last year. Reportedly this was due to dissatisfaction over delays in talks with the main opposition party. This faction includes MPs Dilan Perera and Nalaka Godahewa.

The Alahapperuma group comprises MPs Herath, Gunapala Ratnasekera, Tilak Rajapaksa, Lalith Ellawala and Udeni Kirindiagoda.