President meets Mannar Bishop; discuss Indo-Lanka land connectivity; energy exports

President Ranil Wickremesinghe yesterday met with Most Rev. Dr. Fidelis Lionel Emmanuel Fernando, the Bishop of Mannar, Diocese of Mannar at the Mannar Bishops House.

The Bishop of Mannar commended President Ranil Wickremesinghe for his economic reform efforts aimed at rescuing the country from its financial crisis. During their meeting, they also discussed future development plans for the Mannar district.

Key topics included the development of Point Pedro and Mullaitivu as renewable energy hubs. Emphasis was placed on ensuring that these development activities are carried out in an environmentally friendly manner.

During their discussion it was noted that negotiations are underway regarding the sale of surplus renewable energy to India. A feasibility study is currently being conducted on establishing a power line connection between Sri Lanka and India, with further discussions expected during the upcoming visit of the Indian Foreign Minister to Sri Lanka.

President Wickremesinghe also mentioned that a pre-feasibility study for a land connection between Sri Lanka and India has been completed, and a full feasibility study will be conducted in the near future.

Additionally, plans to develop Mannar as a tourist hub were discussed, including the potential development of Mannar Fort to attract cruise tourists.

President Ranil Wickremesinghe further remarked that these initiatives would lead to extensive development across all sectors in the Mannar district in the future. The Bishop of Mannar also urged the President to address the issues faced by the fishermen of Mannar.

The meeting was attended by Vicar General of the Mannar Diocese, Father P. Christunayagam; Reverend Father Gnanpragasam of Madu Church; Father Peppi Sosei; former Vicar General of the Mannar Diocese; and other clergy members.

Chinese Navy hospital ship to visit Sri Lanka

The Chinese People’s Liberation Army (PLA) Navy hospital ship “Peace Ark” set sail from a military port in Zhoushan to visit several countries, including Sri Lanka.

The ship set sail from a military port in Zhoushan in east China’s Zhejiang Province on Sunday morning for Mission Harmony-2024.

During the mission, the ship will visit 13 countries, namely, Seychelles, Tanzania, Madagascar, Mozambique, South Africa, Angola, the Republic of the Congo, Gabon, Cameroon, Benin, Mauritania, Djibouti and Sri Lanka, and provide medical service to local people. It will also make port calls to France and Greece.

This is the 10th Mission Harmony for “Peace Ark” since its commissioning in 2008. The “Peace Ark” will offer free diagnosis and treatment for common and prevalent diseases to local residents, people in Chinese institutions, and overseas Chinese through onboard clinics and dispatched medical teams.

There are over 100 personnel on board the maritime hospital, featuring 17 clinical departments and 5 auxiliary diagnostic departments.

The “Peace Ark” is the first domestically designed and constructed standard ocean-going hospital ship in China. It has visited 45 countries and regions, providing medical services to over 290,000 people. (Xinhua)

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Presidential Election 2024: EC snubs Harin’s 5 Oct. polls date claim

Amidst political tensions, Election Commission (EC) Chairman R.M.A.L. Rathnayake bluntly dismissed claims by Tourism and Sports Minister Harin Fernando regarding a 5 October election date, asserting that the EC, not the Cabinet or Government, held the authority to set the election schedule.

“From 17 July onwards, EC members will convene independently to determine the election date,” Rathnayake declared.

“We will publicly announce the date without obligation to seek approval from any external body, including the Cabinet or President.”

Highlighting procedural specifics, Rathnayake clarified that elections could only commence after 17 September, followed by a mandatory four- to six-week preparation period.

Nomination dates, he added, would be set between 17-21 days post-announcement.

“This reaffirms the EC’s autonomy,” Rathnayake asserted, highlighting the commission’s resolve to uphold constitutional integrity amidst mounting political pressures.

Section 2 of the Presidential Elections Act No.15 of 1981 defines the Elections Commissioner’s duties in overseeing Presidential Elections as mandated by the Constitution.

According to this provision, the commissioner is required to issue an order published in the gazette, specifying two crucial dates.

First, the nomination date for candidates, set between 16 days and one month from the order’s publication date, along with the designated nomination location. Second, the polling date, scheduled between one month and two months from the nomination date.

Importantly, these dates cannot coincide with full moon Poya days or public holidays listed in the First Schedule to the Holidays Act No.29 of 1971. Furthermore, any subsequent declaration of a day as a public holiday after the order’s publication does not invalidate actions taken on that day for the purposes outlined in the act.

Furthermore, Chapter VII, Section 31(3) of the Constitution further specifies that the Presidential Election must occur not less than one month and not more than two months before the term of the incumbent president expires.

NPP government will continue Provincial Council system: Anura Kumara

The Provincial Council system will continue in its current form under the National People’s Power government until a new system is identified to create harmony among the Sinhala, Tamil and Muslim communities, NPP leader Anura Kumara Dissanayake said today.

Addressing a gathering in London, he said the NPP never accepts Provincial Council system as a solution to the national issue.

Dissanayake said the Tamil and Muslim communities believe that the Provincial Council is a right that they had won and that scrapping the system will create unnecessary issues.

“We will continue the PC system as an interim solution. We believe that it is not a lasting solution. Our policy is to continue the PC system in the current form until a lasting solution is identified,” he said.

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Mannar’s long-overdue development to be fast-tracked, says President

President Ranil Wickremesinghe announced that pilgrims to Madhu will be provided with all necessary facilities to engage in their pilgrimage activities without any hindrance.

Addressing the Mannar District Development Committee meeting held today (16) at the Mannar District Secretariat, he emphasized that it is unfair to arrest and fine pilgrims on their way to sacred sites like Madhu Church and Sri Pada.

He instructed that if pilgrims are arrested in the future, the President’s Office should be informed immediately.

During the meeting, the President directed the Sri Lanka Army to clean and develop both sides of the existing Madhu Road for the convenience of the pilgrims visiting Madhu Church.

He also coordinated with a representative of the Bishop of Mannar, the Department of Forest Conservation, the Road Development Authority, and the Sri Lanka Police to ensure these tasks are completed before the upcoming annual festival of the church of Our Lady of Madhu.

Political representatives and government officials attended the meeting, which focused on the future development plans for the Mannar district. Various issues, including those related to health, education, and irrigation, were presented directly to the President, who worked to provide immediate solutions to many of these problems.

The President also addressed the urgent request from the hospital director for a CT scan machine for the Mannar Hospital, promising that this need will be promptly met.

President Ranil Wickremesinghe stated that the lost development will be restored to the Mannar district, with the program starting this year.

He emphasized the necessity of finding solutions that can be implemented in Sri Lanka to adapt to the changing weather patterns over the next five decades. It is predicted that wet regions will receive more rain while dry regions will experience less rainfall in the next fifty years.

The President also stressed the importance of creating a new transformation in the economic, social, educational, and agricultural sectors to align with the evolving global landscape.

Further expressing his views, President Wickremesinghe said:

“After enduring three decades of war, the Mannar district is now rebuilding. This district holds significant potential to boost Sri Lanka’s economy through extensive development. The tourism, fishing, and renewable energy industries have high potential in Mannar.

The district has excellent prospects for wind and solar power generation. Discussions have been held with the Indian Government about producing this energy and selling it to India. The Northern Province, in particular, has a unique capability to generate green energy.

Constructing solar panel power plants on lakes and wind power plants can produce substantial energy. Selling this energy to India and other countries can greatly contribute to Sri Lanka’s economy. Green energy and green hydrogen have the potential to foster a green economy.

Funding for the construction of a new court complex in Mannar will be provided. The possibility of opening the road to Mannar through Puttalam will be discussed in the future. Additionally, arrangements are being made to provide a CT scan machine to the Mannar Hospital. A formal program to create modern agriculture has been presented, and I encourage the development committee to meet, discuss, and suggest the necessary facilities for this initiative. A structured plan is needed to protect the lakes in this area and secure water from the Malwatu Oya project.

In the next five decades, it is predicted that wet regions will receive more rain while dry regions will experience drought. We must start finding solutions now to address this situation.

The road to Madhu Church serves pilgrims, as does the road to Sri Pada for those visiting Sri Pada. It is unfair to arrest and impose a fine of Rs 300,000 on the church. Therefore, representatives from the Diocese of Mannar, Forest Conservation Department, Road Development Authority, Sri Lanka Police, and Army should collaborate to clean and develop this road. These activities will be completed before the annual festival of the church of Our Lady of Madhu.

The guard post at the entrance to Mannar city cannot be removed immediately, but discussions with the security forces will be held to take appropriate measures. Necessary development for the Mannar district will be provided, with the foundational work starting this year.

I wanted to inform you about the extensive development process happening in Mannar. Let’s work together to make Mannar a major contributor to the country’s economy through comprehensive development.”

Source: PMD

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Sri Lanka, China hold bilateral consultation in Beijing; policies to be reviewed

Annual bilateral political consultation meeting between top officials of Sri Lanka and China will be held in Beijing next week with the review of some bilateral policies , Sri Lanka’s Foreign Ministry said.

“Secretary, Foreign Affairs, Aruni Wijewardana will lead Sri Lanka’s delegation to the 13th round of Diplomatic Consultations with the People’s Republic of China to be held on 17 June 2024 in Beijing,” the Foreign Ministry said in a statement.

She will co-chair the Consultations with Sun Weidong, the vice Minister of Foreign Affairs of the People’s Republic of China, .

“The discussions are expected to review progress in the areas of bilateral engagement including on political, economic, trade, investment and defence.”

“Sri Lanka’s delegation to the Consultations will include the Ambassador- Designate in Beijing Majintha Jayesinghe, and senior officials of the Ministry of Foreign Affairs including Acting Director General for East Asia Division Poshitha Perera and the Embassy of Sri Lanka in China.

“It is an annual event. Basically some review on the bilateral policies will take place,” Foreign Minister Ali Sabry told EconomyNext.

This year’s consultation meeting comes after a milk hiccup in diplomatic relations between the both countries after Sri Lanka banned Chinese research vessels calling the island nation for research purposes for one year.

The ban came after strong protest by India, which had cited security threats from such research ships, Sri Lanka government officials have said.

Sri Lanka is a key partner in China’s Belt and Road Initiative (BRI), known in China as the One Belt One Road (OBOR) and sometimes referred to as the New Silk Road, a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in more than 150 countries and international organizations.

The BRI is composed of six urban development land corridors linked by road, rail, energy, and digital infrastructure and the Maritime Silk Road linked by the development of ports.

Diplomatic analysts say China has been on a lower profile in Sri Lanka for the last two years unlike in the past.

However, the world’s second largest economy has been able to win Sinopec refinery in the island nation’s Southern port district of Hambantota and Sinopec fuel service stations island wide within the last two months.

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Presidential election on October 05?

Minister Harin Fernando today (14) revealed that an election is scheduled to take place on October 05 this year.

He made this announcement during a press interaction in Galle.

Expressing confidence in the outcome, Minister Fernando asserted that President Ranil Wickremesinghe would emerge triumphant in the forthcoming election.

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Tussle over giving Lankan Tamils devolution of power under the 13 th. Amendment By Veeragathy Thanabalasingham

Many amendments have been brought to the Sri Lankan constitution in more than four and a half decades which were detrimental to democratic governance. But there has been no major controversy about them. But the 13th Amendment (13 A) which has a democratic dimension, has been controversial in the extreme.

It has been in the Constitution for more than three and a half decades, but has not been implemented in full.

The 13A enacted following the July 1987 Indo-Sri Lankan Accord to introduce elected provincial councils has not been properly implemented by any government. As the country looks ahead to the Presidential election, the controversy over 13A has been revived.

Last week in Jaffna, the two main candidates in the upcoming Presidential election, Samagi Jana Balawegaya (SJB ) leader Sajith Premadasa and National People’s Power (NPP ) leader Anura Kumara Dissanayake announced that their governments will implement the 13A.

The Leader of the Opposition Sajith Premadasa who was on a four-day visit to the North last week, promised to implement the 13A while addressing a function in Kilinochchi in the Vanni region. Earlier also, while addressing the SJB rally in Colombo, he said that efforts would be made to resolve the problems of the minority communities with the support of the Sinhalese people and that the 13A would be implemented. He had never taken a strong stand against the amendment before.

At a meeting with the leaders of Ilankai Thamizharasu Katchi (ITAK ) popularly known in English as the Federal Party, in Jaffna last Monday, Premadasa reiterated his current position on the 13A. After the meeting, Premadasa, who met journalists, was asked if he would give police and land powers to the Provincial Councils. In response, he avoided a direct answer but said that 13A would be fully implemented and that there will be no 13A plus or minus.

The next day, Anura Kumara Dissanayake of the NPP also met the leaders of ITAK in Jaffna and assured them that a future NPP government would take steps to solve the national ethnic problem through a new constitution. But before that the Provincial Council system would be properly implemented.

Dissanayake also reminded the Tamil leaders of the pledge given in the 2019 Presidential election manifesto of the NPP to continue the Provincial Council system. It was mentioned in the first paragraph of the section titled ‘National Peace and Reconciliation’. It said that the Provincial Councils would continue to function effectively until a permanent solution was found within a new constitution based on the principles of equality and democracy through the devolution of political and administrative powers.

However, the proper functioning of the Provincial Council system is nothing but the full implementation of the 13A. Based on Dissanayake’s comments to the ITAK leaders, it can be surmised that the NPP currently supports the full implementation of the 13A.

At the same time, Dissanayake has taken the position that the 13A is not a solution to the ethnic problem, just as Tamil political parties have been saying.

Dissanayake, who had visited the North two months ago, had said that he was not prepared to bargain for Tamil votes by promising a solution based on a federal system or even the implementation of the 13A. He has now reversed his stand. But he did not say anything specifically about police and land powers.

When President Ranil Wickremesinghe spoke last year about implementing the 13A well ahead of Premadasa and Dissanayake, hard-line Sinhalese nationalist forces and Buddhist monks expressed strong opposition.

Addressing the 2023 National Thai Pongal Festival in Jaffna, the President announced that his government would take phased steps to fully implement the 13A in two years. Outraged Buddhist monks staged a demonstration outside parliament and set fire to copies of the 13A, when the President ceremonially opened the new session of Parliament on 8 February 2023.

During a session of the All Party Conference at the Presidential Secretariat, the President said in a stern tone that the 13th Amendment to the Constitution should be implemented or abolished and also suggested that a new constitutional amendment could be introduced by any member of parliament as a private member bill to repeal the 13A. But no one has come forward to do so.

A few days before going to New Delhi on an official visit to India in July last year, the President floated the idea of implementing the 13A without police powers at a meeting with Tamil parties. The Tamil parties rejected it outright.

A few weeks ago, when President Wickramasinhge met the former chief minister of the Northern province and a current Member Parliament Justice C.V. Wigneswaran in Jaffna, it was pointed out to him that Premadasa had assured that his government would implement the 13A when he addressed a May Day rally.

The President promptly urged Wigneswaran to ask Premadasa whether he could implement it with police and land powers. It seems that the President expressed his belief that it is impossible for any government to implement the 13A with police and land powers.

Due to the protests against the 13A in South Lanka following the President’s announcement last year, it was widely believed that during the Presidential election it was impossible for any of the major candidates to publicly mention a political solution to the national problem in their election manifestos.

Before Premadasa returned to Colombo from Jaffna, MP Udaya Gammanpila, the leader of Pivithuru Hela Urumaya, condemned Premadasa and said that Leader of the Opposition would not have made that pledge in Jaffna if he had understood the consequences of giving police and land powers to the provinces under the India-imposed 13A.

As the national elections approach, many more Sinhala nationalist political parties and Sinhala Buddhist organizations will no doubt come out against Premadasa and Dissanayake for their “Jaffna Declarations” in order to win over the Sinhala nationalist electorate. Thus the Tamil people doubt whether they will stand firm in their position despite such opposition.

An SJB Colombo District Member of Parliament while addressing reporters in Colombo last week said that their leader would not have spoken in Jaffna about full devolution of police powers to the provinces and that there was no problem in devolving social and environmental police powers to the provinces.

Meanwhile, former Parliament Speaker Karu Jayasuriya, the leader of the National Movement for Social Justice, has appealed to the government and political parties, especially the Tamil political parties, to take advantage of the opportunity given by Premadasa’s assurance in the North and asked the government to convene a round table conference to explore ways of finding solutions to post-war problems.

There has been no response from the political parties to Jayasuriya’s request.

If the main political parties and their leaders stand firm in their positions and do not succumb to the vicious propaganda of the Sinhalese hardline nationalist forces, they can definitely prevent the presidential election from going in a communal direction.

It was learnt from the leaders of the ITAK that Premadasa and Dissanayake said that it was necessary to take advantage of the current situation where the Sinhalese nationalist forces have been weakened in South. Tamil politicians can decide what position to take in the Presidential election depending on whether the leaders of the SJB and the NPP will mention the pledge to implement the 13A in their manifestos or not.

Most of the Tamil politicians are also struggling to take a firm stand on the proposal of fielding a common Tamil candidate.

In this context, it is important to note a pertinent point made by MP M.A. Sumanthiran in his address at a political symposium in Jaffna last week. He said that instead of coming to the Tamil people and giving promises, the main Presidential candidates should explain their plans for a political solution to the national ethnic problem to the Sinhalese people in the South.

IMF Approves 3rd Tranche For Sri Lanka After Completing Second Review

The Executive Board of the International Monetary Fund (IMF) completed the second review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR 254 million (about US$336 million). This brings the total IMF financial support disbursed so far to SDR 762 million (about US$1 billion). The Executive Board also concluded the 2024 Article IV Consultation with Sri Lanka.

The EFF arrangement for Sri Lanka was approved by the Executive Board on March 20, 2023 in an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion. The first review of the EFF was completed by the Executive Board on December 12, 2023 with disbursements of SDR 254 million (about US$337 million).

The EFF-supported program aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, rebuild external buffers, safeguard financial sector stability, and strengthen governance and growth potential.

Signs of economic recovery are emerging. Real GDP expanded by 3 percent (y-o-y) in the second half of 2023. May 2024 inflation was 0.9 percent and gross international reserves increased to US$5.5 billion by end-April 2024. The primary balance improved to a surplus with tax revenue increasing to 9.8 percent of GDP in 2023. Despite improvements in non‑performing loans, pockets of vulnerabilities remain in the banking sector.

The recovery remains gradual, and the medium-term growth potential hinges on appropriate policy settings. Growth is projected to recover moderately in 2024-25 given constrained bank credit and fiscal consolidation, while facing uncertainties around the debt restructuring and policy direction following the elections. Inflation is expected to temporarily increase due to one-off factors. The current account is expected to remain positive in 2024, driven by improved tourist arrivals and remittances. Domestic risks could arise from waning reform momentum, especially on revenue mobilization. External risks are associated with intensified regional conflicts, commodity price volatility, and a global slowdown. Slow progress in debt restructuring could widen financing gaps.

Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

“Sri Lanka’s performance under its Fund-supported program remains strong. All quantitative targets were met, except for the marginal shortfall of indicative target on social spending. Most structural benchmarks were either met or implemented with delay. Reforms and policy adjustment are bearing fruit. The economy is starting to recover, inflation remains low, revenue collection is improving, and reserves continue to accumulate. Despite these positive developments, the economy is still vulnerable and the path to debt sustainability remains knife-edged. Important vulnerabilities associated with the ongoing debt restructuring, revenue mobilization, reserve accumulation, and banks’ ability to support the recovery continue to cloud the outlook. Strong reform efforts, adequate safeguards, and contingency planning help mitigate these risks.

“To restore fiscal sustainability, sustained revenue mobilization efforts, promptly finalizing the debt restructuring in line with program targets, and protecting social and capital spending remain critical. Advancing public financial management will help enhance fiscal discipline, and strengthening the debt management framework is also needed.

“Monetary policy should continue prioritizing price stability, supported by a sustained commitment to refrain from monetary financing and safeguard central bank independence. Continued exchange rate flexibility and gradually phasing out the balance of payments measures remain critical to rebuild external buffers and facilitate external rebalancing.

“Restoring bank capital adequacy and strengthening governance and oversight of state-owned banks are top priorities to revive credit growth and support economic recovery.

“The authorities need to press ahead with their efforts to address structural challenges to unlock long-term potential. Key priorities include steadfast implementation of the governance reforms; further trade liberalization to promote exports and foreign direct investment; labor reforms to upgrade skills and increase female labor force participation; and state-owned enterprise reforms to improve efficiency and fiscal transparency, contain fiscal risks, and promote a level playing field for the private sector.

Executive Board Assessment

Executive Directors commended the authorities’ strong performance under the Fund‑supported program, noting that reforms are bearing fruit. The economy has started to recover, inflation remains low, revenue collection is improving, and reserves continue to accumulate. Directors underscored, however, that important vulnerabilities and uncertainties remain, including with respect to the ongoing debt restructuring and the upcoming elections. Against this backdrop, they called on the authorities to continue strengthening macroeconomic policies to restore economic stability and debt sustainability and to sustain the reform momentum to promote long‑term inclusive growth.

Directors underscored that restoring fiscal sustainability requires additional revenue measures underpinning the 2025 Budget, further tax administration reforms, as well as limiting tax exemptions and making them more transparent. They called for protecting growth‑enhancing and social spending, and for improving the social safety net. Directors welcomed the submission of the new Public Financial Management bill to Parliament, which would strengthen fiscal discipline and establish a solid fiscal framework. They noted that further efforts to strengthen the debt management framework are also needed. Directors welcomed the progress on achieving cost‑recovery in energy pricing, noting its criticality for containing risks from state‑owned enterprises (SOEs).

Directors welcomed the progress made to advance debt restructuring to restore Sri Lanka’s debt sustainability. They called for a swift finalization of the Memorandum of Understanding with the Official Creditor Committee and final agreements with the Export‑Import Bank of China. Directors stressed the importance of seeking comparable, transparent, and timely completion of restructurings with external private creditors consistent with program targets.

Directors emphasized that maintaining price stability remains the top priority for monetary policy, which requires anchoring inflation expectations, continuing to refrain from monetary financing, and the gradual unwinding of government security holdings as markets allow. They also stressed the importance of strengthening central bank independence. Directors underscored the need to continue building external buffers, while maintaining exchange rate flexibility to facilitate external rebalancing and preserve the credibility of the inflation targeting regime. They called for gradually phasing out the balance of payments measures.

Directors underscored the need to strengthen financial sector resilience to support the recovery. They called for swift completion of the restructuring of remaining domestic law, foreign currency loans and for adequate recapitalization of commercial and state‑owned banks. Directors welcomed the enactment of the Banking Act amendments and emphasized the importance of their effective implementation to enhance supervision and the governance of state‑owned banks. They also called for further efforts to strengthen the anti‑money laundering and counter‑terrorism financing framework.

Directors stressed that pressing ahead with governance and structural reforms, supported by development partners and IMF capacity development, is crucial to unlock growth potential. They welcomed the publication of the authorities’ action plan on the key governance reforms recommended in the Governance Diagnostic Report and called for its steadfast implementation. Directors also recommended prioritizing reforms to further liberalize trade, improve the investment climate and SOE efficiency, reduce gender gaps in the labor market, and mitigate climate vulnerabilities.

USA Transfers $3 Million Worth of Equipment to Sri Lankan Military

The United States has transferred $3 million worth of equipment to the Sri Lankan military in a ceremony marking the 76th anniversary of US-Sri Lankan diplomatic relations. The event took place at SLAF Base Katunayake in the No. 02 Squadron Hangar.

The ceremony was attended by Air Marshal Udeni Rajapaksa, Commander of the Air Force, and Julie Chung, the US Ambassador to Sri Lanka. The US Embassy’s Senior Defense Official, Lieutenant Colonel Nelson, highlighted the significance of this transfer in enhancing regional security and bilateral ties.

“ $3 million equipment transfer marks another important milestone in our long-standing partnership with Sri Lanka. Enhancing Sri Lanka’s security contributes to regional stability and peace, benefiting everyone. We’re proud to support initiatives that strengthen our ties in ways that help Sri Lanka safeguard their waters, promote regional security, and ensure the prosperity and safety of the Sri Lankan people,” said Lieutenant Colonel Nelson.

The equipment, valued over $1.6 million for the Air Force alone, includes air mobility equipment and aircraft spare parts for C-130 aircraft and the Beechcraft King Air 360 ER, which will soon be donated to the SLAF by the United States. Senior officers from the Sri Lanka Army and Navy, including Air Vice Marshal Deshapriya Silva, were also present for the signing and exchange of official documents.

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