Author: TELO Admin

President Gotabaya Rajapaksa is likely to appoint a Cabinet-level negotiation committee to hold discussions with ‘friendly countries’ seeking financial assistance ahead of the country’s external debt repayments this year.

Based on a proposal presented by Finance Minister Basil Rajapaksa, the Cabinet Co-Spokesperson and Minister of Mass Media Dullas Alahapperuma yesterday said the Cabinet of Ministers has agreed to appoint a ministerial negotiation committee to engage in negotiations with ‘friendly countries’ of Sri Lanka and to allow President Rajapaksa to appoint members to the committee.

“The President is likely to announce it during the next Cabinet meeting,” he said.

However, he didn’t specify the list of ‘friendly nations’ the government is going to approach with this committee.

The government has been seeking currency swaps and credit lines from several countries, including India, China and some Middle Eastern countries.

Commenting on the repayment of US$ 500 million International Sovereign Bonds (ISB) maturing on 18th of this month, the Cabinet Co-Spokesperson and Minister of Plantation Ramesh Pathirana expressed confidence of repaying the full amount on time.

Sri Lanka and India have agreed to implement a joint development project with regard to the Trincomalee Oil Tank Complex, commonly known as the Trinco Oil Tank Farm.

The Cabinet of Ministers has approved the proposal to allocate 24 Oil Tanks for the Ceylon Petroleum Corporation, 14 tanks of the Lower Oil Tank Complex already in use by Lanka IOC.

The remaining 61 tanks will be for the development project named Trinco Petroleum Terminal Private Limited, 51% will be owned by CPC and 49% by Lanka OIC.

Joint Cabinet Spokesperson (Minister) Udaya Gammanpila said this joint venture will be for a lease period of 50 years.

He said since Trinco Petroleum Terminal Private Limited will be a state enterprise, it will be subject to audits by the Auditor General of Sri Lanka.

Sri Lanka is unlikely to seek a bailout from the International Monetary Fund (IMF) with the Cabinet failing to reach a consensus last evening.

Government sources told Daily Mirror last night that most members of the Cabinet did not support seeking financial support from the IMF.

Sources said that a majority in the Cabinet are against the pre-conditions expected to be proposed by the IMF for the funding.

As a result, Government sources said that Sri Lanka is most likely to decide not to seek an IMF bailout.

IMF’s mission chief for Sri Lanka, Masahiro Nozaki had told Daily Mirror via email in late December that the staff is still ready to discuss the option if requested.

Nozaki said a staff team from the IMF visited Colombo from December 7–20 to conduct the 2021 Article IV consultation with Sri Lanka.

Under Article IV of the IMF’s Articles of Agreement, the IMF holds regular bilateral discussions with all member countries to review economic developments and policies.

Following approval by IMF Management the IMF’s Executive Board discusses a Staff Report based on these discussions, Nozaki said.

The Cabinet had last month also discussed an IMF bailout but had not reached a decision at that meeting if to seek financial support from the global agency.

The Russian Federation has transferred USD 5.5 million to the World Food Program (WFP) in order to provide financing of the projects related to the development of sustainable school nutrition systems in Sri Lanka.

Ambassador of Russia in Sri Lanka Yury B. Materiy said yesterday the support was in line with the policy of strengthening cooperation with Sri Lanka in the interest of sustainable development.

Sri Lanka and Russia in October last year successfully concluded the 10th Round of Bilateral Political Consultations in Moscow.

During the meeting, the two sides reviewed existing multifaceted relations between Sri Lanka and Russia encompassing political, economic and cultural spheres as well as people–to-people contacts.

In discussions, the two sides also referred to cooperation in defence, education, connectivity and tourism, and in combating COVID-19, among others.

Recalling the longstanding historic relations and strong partnership between the two countries, both sides reaffirmed cooperation on issues of mutual interest in multilateral fora.

The discussion also focused on regional and international issues of mutual interest. Both sides are looking forward to the celebration of the 65th anniversary of diplomatic relations between Sri Lanka and Russia this year.