LRT Project: Japanese embassy says Project loans depend on debt restructuring

In response to a query about the restart of the Japan-financed Light Rail Transit (LRT) project, the Japanese embassy in Colombo said the resumption of loan projects and the launch of a new loan project will depend on the progress of the debt restructuring process.

The Sri Lankan Cabinet gave approval this week to proceed with the resumption of the US $ 2.2 billion LRT project to be financed by Japan International Cooperation Agency (JICA).

The line is to be constructed linking Malambe with Colombo Fort. The project was launched during the time of the previous Yahapalana government. However, in September, 2020, the Gotabaya Rajapaksa government scrapped the project.

During the recent visit to Japan, President Ranil Wickremesinghe sought to resume the project.

Responding to a query posed by Daily Mirror in this regard, the Japanese embassy said it is important for Sri Lanka to proceed with the debt restructuring process with all the creditors in a transparent, equal manner.

The embassy said Japan will see how to resume loan projects and start new loan projects while keeping an eye on the debt restructuring process.

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Sri Lanka will overcome the prevailing economic crisis very soon -China

China’s Vice Foreign Minister Sun Weidong says that he believes that Sri Lanka will overcome the prevailing economic crisis very soon and approach the path of development and that China will provide all support required for this purpose.

He said further that Buddhism was mainly responsible for building strong relations between the two countries and that China intends to further develop that friendship in the future.

The Deputy Foreign Minister made these comments yesterday (1) when he visited the Malwatte Temple and received the blessings of the Chief Prelate of the Malwatte Chapter Most Venerable Thibbotuwawe Sri Siddhartha Sumangala Nayake thera and obtaining his blessings.

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Sri Lanka’s economic recovery remains challenging – IMF

As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis, said Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF).

He said that the economic reform program aims to achieve macroeconomic stabilization, restore debt sustainability, safeguard financial stability, strengthen governance, and protect the vulnerable.

“Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people,” he added.

“I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner. Continued open dialogue with the creditors will help to reach restructuring agreements to restore debt sustainability in line with the program targets. Undoubtably, safeguarding the stability of the financial sector is of utmost importance in this process,” stressed the Deputy Managing Director of the International Monetary Fund (IMF).

Mr. Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement at the conclusion of his visit to Sri Lanka, which followed the approval on March 20, 2023, by the IMF Executive Board of 48-Month arrangements of about US$ 3 billion under the Extended Fund Facility (EFF) with Sri Lanka:

“I wish to thank President and Minister of Finance Wickremesinghe, Governor Weerasinghe, Speaker Abeywardhana, Minister of Foreign Affairs Sabry, Minister of Justice Rajapakshe, State Minister of Finance Semasinghe, State Minister of Investment Promotion Amunugama, Secretary to the Treasury Siriwardana, and senior government officials for their hospitality, and parliamentarians and representatives of the private sector for their engagement. I very much appreciated the constructive discussions I had during my visit, which allowed me to deepen my understanding of the challenges Sri Lanka is facing and to reiterate the IMF’s commitment to support Sri Lanka’s efforts to surmount these challenges.

“I welcomed the authorities’ strong commitment to implement their ambitious economic program which is supported by the IMF. The economic reform program aims to achieve macroeconomic stabilization, restore debt sustainability, safeguard financial stability, strengthen governance, and protect the vulnerable. Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.

“The current economic crisis has its genesis in policy missteps aggravated by external shocks. We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability. I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner. Continued open dialogue with the creditors will help to reach restructuring agreements to restore debt sustainability in line with the program targets. Undoubtably, safeguarding the stability of the financial sector is of utmost importance in this process.

“I had the privilege to visit the Parliament building, an architectural marvel, designed by Sri Lanka’s very own renowned architect. While meeting with the Parliamentarians, we discussed the importance of strengthening governance, which is a central pillar of the program. The hard-won gains of Sri Lankan people who have relentlessly supported the reform effort can only be safeguarded by good governance.

“During my visit to the dock yard, port terminal, and the port city, I was impressed to see continued economic activity which is a testament to the resiliency of the Sri Lankan economy. I underscored the importance of decisive implementation of structural reforms which can attract investment and boost growth.

“As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis. I was heartened to see that the authorities’ have stepped up efforts to increase public spending on social safety nets while improving targeting and coverage for those who need it.

“Lastly, I very much appreciate the excellent, long-standing relations between Sri Lanka and the IMF, and look forward to our continued partnership through the EFF-supported economic program. I will leave Colombo with fond memories of the country and its welcoming people.”

Sri Lanka to consider relaxing import restrictions

Sri Lanka’s State Finance Minister Ranjith Siyambalapitiya said that import restrictions on around 300 to 400 products will be relaxed by next week.

A statement from the Ministry of Finance, Economic Stabilization, and National Policies noted that the decision to relax import restrictions come following the strengthening of the Sri Lankan Rupee against the US Dollar.

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Pakistan Navy Frigate SHAHJAHAN in Colombo

The Pakistan Naval Ship (PNS) ‘SHAHJAHAN’ arrived at the Port of Colombo on a formal visit.

The visiting ship was welcomed by the Sri Lanka Navy in compliance with naval traditions.

PNS ‘SHAHJAHAN’ is a 134.1 m long Frigate which is manned by a crew of 169. She is commanded by Captain Adnan Laghari TI.

During the ship’s stay, the crew will take part in several programmes organized by the Sri Lanka Navy, with a view to promoting cooperation and goodwill between two navies. They are also expected to visit some of the tourist attraction in the country.

Concluding her official visit, ‘SHAHJAHAN’ will depart the island on 04th June and she is expected to engage in a Passage Exercise (PASSEX) with a Sri Lanka Navy ship off Colombo.

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Sri Lanka to tap in to food tourism

Sri Lanka is planning to tap into food tourism as the crisis-hit island nation tries to diversify its tourism market and increase its foreign earnings, an official said.

Recognizing the potential in promoting the country as a tropical nation with a diverse culinary style, Sri Lanka’s tourism promoters who targets 2 million tourists in 2023, hope to include this in their promotional campaign.

“This tourism segment has worldwide demand, and we have great potential due to the diverse food culture in our country,” Priantha Fernando, Chairman of Sri Lanka Tourism Development Authority told Economy Next.

“This segment will resonate well with foreigners and is a way to promote provincial or regional tourism by creating an identity through food.”

Sri Lanka has a rich and diverse culinary history that has been influenced by various cultures and civilizations, including Indian, Arab, Malay, Portuguese, Dutch, and British culinary traditions.

The country also has a tea culture deeply rooted in its history and is renowned for its high-quality tea production, particularly black tea, known as Ceylon tea, both locally and internationally.

“To be honest, we haven’t given much focus to food tourism, but it is an area that we need to develop as it holds tremendous potential,” Rohan Fernandopulle, President of Bocuse d’Or Sri Lanka, a culinary professionals’ association said.

According to the Chairman of SLTDA, the country witnessed 83,000 tourist arrivals in the month of May, and for the whole year, the number stood at 525,000 tourist arrivals.

General Shavendra Silva sends LOD to Wimal Weerawansa

The Chief of Defence Staff (CDS) General Shavendra Silva through his lawyers has forwarded a letter of demand over Wimal Weerawansa’s MP outright lies and baseless allegations of complicit in an alleged conspiracy to overthrow the government during the speech made at the book launch of ‘Nine: The Hidden Story’ at Sri Lanka Foundation Institute on the evening of April 25 and the book itself.

It is also alleged that the MP made similar statements on a TV Programme ‘Salakuna’ aired by Hiru TV and in many other occasions.

General Shavendra Silva in his letter of demand has further claimed the statements made by the MP on him and Sri Lanka Army were absolutely false and baseless. It is said that they have been fabricated and published with the mala fide and ulterior motive to bring defame General Shavendra Silva and tarnish his hard-earned good name and reputation both locally and overseas over his unblemished service to the nation for nearly 40 years. Also, the MP has purely targeted his political acquisitions through such indecent acts.

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Twelve Sri Lanka state enterprises under President

Sri Lanka’s President Ranil Wickremesinghe has brought 12 state owned enterprises under his Ministry of Finance, Economic Stabilization and National Policies.

The following agencies have been brough under the President.

Sri Lanka Telecom and its subsidiaries
North Sea Ltd
Sri Lanka Thriposha Company Ltd
Galoya Plantations (Pvt) Company
National Salt Limited
Sri Lanka Cement Corporation
Paranthan Chemical Ltd
BCC (Pvt) Ltd
State Engineering Corporation
Mahinda Rajapaksa National Tele Cinema Park
Lanka General Trading Ltd

Sri Lanka, China successfully conclude 12th round of diplomatic consultations

Sri Lanka and China, on 30 May 2023, successfully concluded the 12th round of Diplomatic Consultations between the two countries.

The consultations were co-chaired by Secretary to the Ministry of Foreign Affairs of Sri Lanka, Aruni Wijewardane and the Vice Minister of Foreign Affairs of the People’s Republic of China, Sun Weidong, at the Ministry of Foreign Affairs in Colombo.

The discussions focused on bilateral cooperation, economic and trade cooperation, the current economic recovery process, livelihood assistance and financial support, people-to-people exchanges and multilateral cooperation between the two countries.

Elaborating on the high levels of development in China leading to a new development paradigm, China’s path to modernization and successfully elevating millions of Chinese citizens out of poverty in the past four decades, the visiting Vice Minister of China, Sun Weidong stated that there is an opportunity for result-oriented cooperation with Sri Lanka.

Foreign Secretary Aruni Wijewardane appreciated China’s assistance to Sri Lanka during the challenging period and sought China’s support in expanding Sri Lanka’s exports to China, particularly the export of Ceylon cinnamon, seafood, fruits & vegetables and gemstones.

Further, she explained Sri Lanka’s economic recovery and welcomed the increasing trend of Chinese tourist arrivals.

During the consultations Sri Lanka and China pledged to further consolidate bilateral ties for the mutual benefit of the peoples of the two countries.

During the visit, the Vice Minister of Foreign Affairs called on President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena.

The visiting Chinese delegation also held constructive engagement with the members of the Sri Lanka-China Parliamentary Friendship Association and is expected to visit the Sri Lanka-China Friendship Village in Dewanagala. The Vice Minister will also pay homage to the temple of the Tooth Relic in Kandy and call on the Mahanayake Thero of the Malwatte Chapter.

When will this racism end?: Ven. Gnanasara asks

“We have been talking about this racial and religious differences since the time we understood it. So when will this come to an end? Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Aththe Gnanasara Thera questioned.

Addressing the media yesterday, he said that “we, as a country are in a critical juncture today. Not only have there been many discussions over these religious issues, but the internet moderators have snowballed this issue purely for to make money”.

“In all these cases, our name is also attached to those incidents. We saw this issue being discussed in Parliament. Some people who were or weren’t in the parliament served as ministers have continually issued statements saying that Gnanasara Thera should be sent to the gallows,” the prelate said.

“Our country has a constitution. According to the first article of that constitution, it is clearly stated that it is the responsibility of the state to protect and nurture Buddhism. And other religions should be given the right and the believers to practice as per their own thoughts and wishes within this constitution,” he said.

Then what is the religious issue that is being spoken about? Currently, there are about 20 to 30 monks in the form of priests. This is more dangerous.

Ministers who just speak do not understand this. They have not read anything about this issue. They don’t even know what it means. They used to talk anything as they get the chance to grab the microphones, he charged.

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