Fitch Ratings Downgrades Sri Lanka’s Local-Currency IDR to ‘Restricted Default’

Fitch Ratings has downgraded Sri Lanka’s Long-Term Local-Currency (LTLFC) Issuer Default Rating (IDR) to ‘RD’ (Restricted Default) from ‘C’. This downgrade reflects the challenging economic conditions faced by the nation.

Furthermore, the ratings on Sri Lanka’s local-currency bonds tendered in the domestic debt exchange have been lowered to ‘D’ from ‘C’. However, the ratings for the remaining four local-currency bonds, which were not tendered in the domestic debt exchange, have been affirmed at ‘C’.

The Long-Term Foreign-Currency (LTFC) IDR has been maintained at ‘RD’, while the ratings for Sri Lanka’s foreign-currency bonds have also been affirmed at ‘D’.

As a result of these changes, Fitch Ratings has withdrawn all issue ratings of Sri Lanka’s foreign and local-currency bonds, as they are no longer considered relevant to the agency’s coverage.

It’s worth noting that Fitch typically does not assign Outlooks to sovereigns with a rating of ‘CCC+’ or below, reflecting the severity of the economic challenges facing Sri Lanka.

President appoints committee to probe Channel 4’s allegations on Easter attacks

President Ranil Wickremesinghe has appointed a three-member committee to investigate the allegations in the documentary aired by British television network Channel 4 on the 2019 Easter Sunday terror attacks in Sri Lanka.

The committee, chaired by retired Supreme Court Justice S.I. Imam, consists of retired Air Force Commander A.C.M. Jayalath Weerakkody and President’s Counsel Harsha A.J. Soza PC.

On September 06, Channel 4 aired a controversial documentary containing startling accusations relating to the bombings on Easter Sunday (April 21) in 2019 which targeted several Catholic churches and luxury hotels in Sri Lanka. The carnage claimed the lives of more than 260 people and left hundreds of others wounded.

Channel 4’s new ‘Dispatches’ investigation titled ‘Sri Lanka’s Easter Bombings’ is a nearly 50-minute-long videos with serious, yet straightforward allegations about the attacks. It was based on the testimonies of high-placed whistleblowers who alleged that senior governmental officials were complicit in this heinous act.

The main whistleblower Hanzeer Azad Maulana was a spokesman for LTTE’s breakaway group Tamil Makkal Viduthalai Pullikal (TMVP) led by current State Minister of Rural Road Development Sivanesathurai Chandrakanthan alias Pillayan.

According to the documentary, Maulana, who has sought asylum overseas after facing fraud charges here, has witnessed a meeting in Puttalam in 2018, between the suicide bombers and a top Sri Lankan intelligence officer prior to the Easter Sunday attacks.

Claiming that he had, on the directives of Pillayan, arranged the said meeting between then-army intelligence chief Major General Suresh Sallay and the National Thowheed Jamaath (NTJ) members including its leader Zahran Hashim, Maulana said the plot to create insecurity in the country to pave way for former president Gotabaya Rajapaksa to win the presidential election later in 2019 was hatched over 2-3 years.

The documentary, which recapped the country’s political situation, also gave a lengthy commentary on former presidents Mahinda Rajapaksa and Gotabaya Rajapaksa’s time in power and their attempts to return to power after election defeats.

Recalling the 2009 disappearance of journalist Lasantha Wickrematunga who was a prominent critic of the then-government, the ‘Dispatches’ investigation video claimed that Mahinda Rajapaksa’s administration had formed a clandestine death squad called the ‘Tripoli Platoon’ with the support of Pillayan’s group to crack down on anti-government media persons.

It had interviewed former senior CID officer Nishantha Silva who was investigating the disappearance of Wickrematunga. He claimed that he found phone record evidence putting ‘Tripoli Platoon’ members at the scene and that Gotabaya Rajapaksa had ‘direct monitoring’ of this death squad.

The documentary also presented testimonies from His Eminence Cardinal Malcolm Ranjith, journalist Frederica Jansz who was a witness in the ‘White Flag’ case, the brother of journalist Lasantha Wickrematunga, former commissioner of Human Rights Commission of Sri Lanka (HRCSL) Ambika Satkunanathan and former diplomat Sarath Kongahage.

However, Kongahage later accused the British television network of distorting his comments from the interview. Calling a media briefing on September 12, the former ambassador said Channel 4 had used his remarks out of context.

Meanwhile, former President Gotabaya Rajapaksa also hit out at the documentary, deeming it “an anti-Rajapaksa tirade aimed at blackening the Rajapaksa legacy from 2005 onwards and is a tissue of lies just like the previous films broadcast by the same channel.”

The Defence Ministry and Major General Sallay went on to categorically deny the claims that the latter was complicit in orchestrating the bombings.

A statement from the ministry stressed that the terrorists involved in the suicide attacks had never been on the government’s payroll, and vowed to unequivocally hold Channel 4 accountable for any unforeseen actions or repercussions stemming from their “unfounded, malevolent and poorly substantiated” claims in the video.

However, opposition members including Opposition Leader Sajith Premadasa and Malcolm Cardinal Ranjith have called for an independent, transparent and broad international investigation into the alleged plot behind the Easter Sunday carnage.

India reminds Sri Lanka of 13A at UNHRC Session

India, at the 54th Session of the United Nations Human Rights Council, reminded Sri Lanka to implement the 13A and conduct the Provincial Council elections to ensure a life of respect and dignity for the Tamils in Sri Lanka.

Indian Ambassador Indra Mani Pandey, Permanent Representative during the Interactive Dialogue on the OHCHR Report on ‘Promoting reconciliation, accountability and human rights’ in Sri Lanka at the Human Rights Council on 13 September reiterated that India has always been guided by two fundamental principles in its support for the aspirations of Tamils, for equality, justice, dignity and peace and unity, territorial integrity and sovereignty of Sri Lanka and they hope that the Government of Sri Lanka will fulfill the aspirations of Tamils for equality, justice and peace and its commitment to implement the 13th Amendment and conduct Provincial Council Elections to ensure a life of respect and dignity for Tamils in Sri Lanka.

“We have taken note of reaffirmation by the Government of Sri Lanka on implementation of its commitments. However, progress on the same is inadequate and we urge the Government of Sri Lanka to work meaningfully towards early implementation of its commitments to ensure that the fundamental freedoms and human rights of all its citizens are fully protected,” Pandey said.

She further stressed that India is a close neighbour and friend of Sri Lanka, India has consistently supported Sri Lanka’s efforts towards relief, rehabilitation, re-settlement and the reconstruction process since 2009. India has also provided multi-pronged support, totalling more than USD four billion, to Sri Lanka and its people in the last one year to tide over its economic challenges.

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Tamil Nadu CM Stalin Urges Immediate Release Of 17 Fishermen Arrested By Sri Lanka

Flagging the arrest of 17 Tamil Nadu fishermen by Sri Lanka, Chief Minister M K Stalin on Thursday urged the Centre to secure their immediate release.

Writing to External Affairs Minister S Jaishankar, Stalin said, “earlier today, three mechanised boats and 17 Tamil Nadu fishermen were apprehended by the Sri Lankan Navy, allegedly for crossing the International Maritime Boundary Line (IMBL) into Sri Lankan waters.”

Stalin requested him to take up immediate diplomatic efforts to secure their release. “These fishermen, who rely on fishing as their primary and sole source of livelihood, sometimes find themselves unintentionally drifting into Sri Lankan waters due to the absence of clear demarcation and navigational challenges.”

Recurring incidents of apprehension of Tamil Nadu fishermen by Sri Lankan Navy continues to aggravate the atmosphere of fear and uncertainty among fishermen. The arrest of fishermen by Sri Lankan Navy has escalated tensions, disrupted lives, and caused economic hardship to the fishermen and their families.

The CM reiterated his demand for a lasting diplomatic solution to bring peace in the lives of thousands of Indian fishermen.

Citing ‘inadequate progress’ on rights front, India urges Sri Lanka to keep its promises

India on Tuesday said the progress made by Sri Lanka, on its commitment to fulfil the Tamils’ aspirations, was “inadequate” and urged the island nation to “work meaningfully” to keep its promises.

“We have taken note of reaffirmation by the Government of Sri Lanka on implementation of its commitments. However, progress on the same is inadequate and we urge the Government of Sri Lanka to work meaningfully towards early implementation of its commitments to ensure that the fundamental freedoms and human rights of all its citizens are fully protected,” India’s representative told the UN Human Rights Council in Geneva at its ongoing 54th session.

The position was consistent with New Delhi’s remarks last year, that voiced concern over the “lack of measurable progress”.

Unresolved Conflict

India’s intervention at the ‘Interactive Dialogue’, comes in the wake of the latest report of the Office of the United Nations High Commissioner for Human Rights (OHCHR) on ‘Promoting reconciliation, accountability, and human rights in Sri Lanka’. Fourteen years after the civil war ended, Sri Lanka is far from reconciling the ethnic conflict that triggered it.

If the country’s past is troubled, its present is marred by last year’s devastating financial meltdown that has left over half its population vulnerable.

The High Commissioner’s office sought to highlight both the challenges. Addressing the Council on Monday, Nada Al-Nashif, the UN Deputy High Commissioner for Human Rights said one year after the “remarkable protest movement” — the Janatha Aragalaya that ousted the Rajapaksas as the island’s economy crashed dramatically — demanding deep political and democratic reforms, the transformation “has still not materialised”.

Pointing to soaring poverty levels and the enduring impact of the crisis, she said an estimated 37% of households faced acute food insecurity.

Further, the top UN official underscored the limits placed on citizen’s political participation and free expression, owing to the delays in holding local government elections, and in reconstituting Provincial Councils under the 13th amendment to the Sri Lankan Constitution.

India, too, reiterated its position on power devolution, citing its “two guiding principles” of support to the aspirations of Tamils for equality, justice, dignity, and peace; and to the unity, territorial integrity, and sovereignty of Sri Lanka. “We hope that the Government of Sri Lanka will fulfill the aspirations of Tamils for equality, justice and peace and its commitment to implement the Thirteenth Amendment and conduct Provincial Council Elections to ensure a life of respect and dignity for Tamils in Sri Lanka,” the Indian diplomat said.

The UN official also highlighted escalating tensions in the island’s north and east, due to land acquisition “for expansion of military installations, Buddhist heritage conservation at Hindu or Muslim sites, and forestry protection.

At the ongoing session, the Council will not vote on a Sri Lanka resolution but is reviewing the island’s own commitments. While the High Commissioner’s report said it “recognises” the Sri Lankan government’s initiatives in regard to truth-seeking and reconciliation, it stressed that “urgent confidence-building steps” are needed for “genuine reconciliation and transitional justice process” to succeed. The Sri Lankan government rejected the report, and termed earlier resolutions of the Council “intrusive and polarising”.

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China’s ‘Shi Yan 6’ research ship ready for Indian Ocean expedition

The Chinese geophysical scientific research vessel Shi yan 6 (Experiment 6) is set to head for an expeditionary voyage in the eastern area of the Indian Ocean, departing from Guangzhou, south China’s Guangdong Province, on Sunday.

Organized by the South China Sea Institute of Oceanology (SCSIO) under the Chinese Academy of Sciences, the vessel is scheduled to operate at sea for 80 days with 28 scientific research projects from 13 research teams onboard, covering a range of more than 12,000 nautical miles (roughly 22,200 kilometers).

The voyage, based on multidisciplinary observations, aims to obtain a large amount of basic data for revealing the mechanisms by which dynamic processes affect biogeochemical cycles, ecosystems and sedimentary processes in that region, clarifying the geographical pattern of biodiversity in the study area, uncovering the response and indicative role of biological communities to physical processes, as well as understanding paleoclimate changes, Wang Weiqing, chief scientist of the expedition, told China Media Group.

An observation system will be deployed in the key observation area to study the current system in the local topographic evolution and its relationship with seabed sediments and geology, said Wang.

The voyage is also expected to strengthen scientific research cooperation and exchanges with countries along the Maritime Silk Road and further realize the integration of science and education to serve the Belt and Road Initiative, said Lin Qiang, project leader and deputy director of SCSIO.

With a total investment of over 500 million yuan (about $77 million), Shiyan 6 is hailed as one of the main forces of China’s 3,000-tonne vessels for deep-ocean scientific research.

The ship, measuring at 90.6 meters long and 17 meters wide, harbors an open operation deck area of more than 600 square meters and can carry a 60-member crew for 60 days at sea.

Source: CGTN

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HRCSL seeks copy of new anti-terrorism bill for observations

The Human Rights Commission of Sri Lanka (HRCSL) requested President Ranil Wickremesinghe to submit a copy of the Bill titled ‘Anti-Terrorism’, which the Cabinet of Ministers had approved recently, a statement from the Commission said.

The Commission stated it understands that the said Bill is a revised version of the Bill previously gazetted on March 17, 2023.

The HRCSL had also sent its observations and recommendations on the Bill gazetted in March 2023.

It expects to send further observations and recommendations on the revised Bill upon receiving a copy of the new version.

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SLPP and UNP likely to form grand alliance

The Sri Lanka Podujana Peramuna (SLPP) and the United National Party (UNP) are likely to form a grand alliance ahead of the next elections, Colombo Gazette learns.

Sources told Colombo Gazette that talks in this regard are at the initial stages and includes attempting to agree on a common policy and framework on governing the country.

While it is still not clear if there is majority consensus for the move, it is understood that both sides are in agreement that working together in an alliance is the only way both sides can win the next election.

Sources also said that key UNP members have been tasked with attempting to secure the support of some former UNP members who are now in the opposition Samagi Jana Balawegaya (SJB).

Negotiators from the UNP-SLPP are also expected to seek talks with rebel MPs of the SLPP who defected to the opposition or are independent MPs.

Meanwhile, it is understood that the SLPP and the UNP have already reached a consensus on the budget proposals for 2024.

UNP Leader Ranil Wickremesinghe is expected to contest the Presidential elections next year. It is still not clear what role SLPP Leader Mahinda Rajapaksa will play in the event Wickremesinghe does contest.

The popularity of the SLPP dropped during the economic crisis and the ‘Aragalaya’ protests.

During the crisis the SLPP was forced to back the appointment of Wickremesinghe as Prime Minister and later President.

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Shri Santosh Jha appointed as next High Commissioner of India to Sri Lanka

The Government of India has appointed Shri Santosh Jha (IFS: 1993), presently Ambassador of India to Belgium, as the next High Commissioner of India to Sri Lanka. He is expected to take up the assignment shortly.

Shri Jha is a career diplomat with over 28 years of experience in the Indian Foreign Service. He has served in various capacities in India’s diplomatic missions in Russia, Uzbekistan, and the United States. He was also the Deputy Chief of Mission in the Embassy of India in Washington, D.C.

In his previous assignment as Ambassador of India to Belgium, Shri Jha has played a key role in strengthening India’s bilateral relations with Belgium and the European Union. He has also been actively involved in promoting trade and investment between India and Belgium.

Shri Jha is a graduate of the University of Delhi and the Jawaharlal Nehru University. He is also a recipient of the Indian Foreign Service Award for Excellence.

His appointment as the next High Commissioner of India to Sri Lanka is a recognition of his diplomatic skills and experience. He is expected to play a key role in further strengthening India’s relations with Sri Lanka.

In a statement, the Ministry of External Affairs said that Shri Jha’s appointment is a “reflection of the strong and close ties” between India and Sri Lanka. The ministry said that Shri Jha will work to “further deepen and diversify” the bilateral relationship.

Shri Jha’s appointment is also seen as a sign of India’s commitment to help Sri Lanka overcome its current economic crisis. India has already extended financial assistance to Sri Lanka and is working to provide further support.

Ex-President Maithripala calls for international probe into Easter Sunday bombings

Former President Maithripala Sirisena has called for an international probe into the Easter Sunday bombings of 2019, in light of the revelations made by UK’s Channel 4 in their latest exposé on the tragic incidents.

Speaking to the media in this regard on Wednesday (13 Sep.), Sirisena claimed that although he was accused of several allegations in relation to the terror attacks over the last four years, the British television channel’s documentary shed a different light on those who should be held responsible for the attacks.

“We too, are raising our voices, and call for an international probe into the attacks, as proposed by the United Nations. I was judged with regards to this matter for four years, and court orders were given too. But when you look at the Channel 4 (documentary) it is clear that what actually took place is something completely different to what was perceived”, he said in this regard.