Category: Breaking News

A Japanese donation of 300 million rupees has been made to Sri Lanka to assist those affected by recent disasters.

The donation includes tents, mattresses, plastic sheets, and other essential supplies.

The aid was received at the Bandaranaike International Airport in Katunayake by a group of officials, including the Secretary of the Ministry of Defence and the Director General of the Disaster Management Centre.

The aid was delivered through the intervention of the Japan International Cooperation Agency (JICA) and transported by a special cargo plane from Japan.

Visiting US Assistant Secretary Donald Lu has met Sri Lanka’s President Anura Dissanayake.

“We discussed the US’s support for Sri Lanka’s anti-corruption efforts, recovery of stolen funds, and strengthening our economy and sovereignty,” Dissanayake said on social media platform X after the two met on Saturday at the Presidential Secretariat.

“I emphasized fostering a transparent political culture, uplifting rural living standards, and modernizing public services.”

Lu met with other government officials and the opposition leader on Friday.

A Sri Lankan national believed to be the head of the criminal gang known as ‘Ava Group’, based in Northern Sri Lanka, has been arrested in Canada.

Canadian media reported that Prasanna Nallalingam, 32, who also goes by the name Ajanthan Subramaniyam, is facing extradition to France to face murder charges after being arrested in Toronto this spring.

The extradition of Nallalingam is being sought in connection with the alleged gang killing of Abiraman Balakirishnan and attempted murder of another man in September 2022 in France, Canada’s Department of Justice confirmed.

Subramaniyam, is believed to be the leader of a group known as AAVA, an outlaw motorcycle gang active in the northern province of Sri Lanka. The filings state the attack targeted a group known to be rivals of AAVA, the LC Boys, foreign media reported.

According to French media reports, the two groups were engaged in a multi-year conflict over control of La Courneuve, a commune located in the northern suburbs of Paris.

Concealing their faces and armed with “sabres, machetes and knives,” Nallalingam and five associates are alleged to have attacked two occupants of a vehicle in La Courneuve on Sept. 21, 2022. According to the filings, Nallalingam, 32, was not only allegedly involved in the attack on Balakirishnan and the second man, but “planned and instigated it.”

“The two victims were found in agony,” French court filings read; Balakirishnan died of his wounds, while the second man survived.

At the time of the attack, Nallalingam was wanted in Sri Lanka for the March 2021 killing of Sivakumaran Jeewarathna. According to court filings, he escaped the country not long after, sparking Interpol to issue an international arrest warrant.

Nallalingam was also already known to French authorities at the time – in 2019, court documents show he was sentenced to a six-month suspended prison sentence for “acts of violence,” and, in 2021, received a sentence of three years for his participation in an organized raid on a restaurant in Paris, reportedly carried out in retaliation for a prior attack on an AAVA member.

Nallalingam entered Canada from the United States in December 2022. According to the filings, he was able to do so by providing a fraudulent name at an unauthorized checkpoint on Roxham Road in Quebec. It is not clear how Nallalingam entered the U.S.

Nallalingam awaited a decision on that claim for the next year, during which French authorities joined Interpol in issuing a warrant for his arrest.

“Considering that (Nallalingam) is strongly suspected of having participated in acts of murder (and) attempted murder committed by an organized gang; That this information related to acts punishable by life imprisonment sentences; That these are acts of a particularly serious nature committed on a public highway; That there is a significant number of protagonists and that (Nallalingam) currently appears to be a fugitive abroad; that he is already being investigated by the Sri Lankan authorities for murder; In view of these elements, it appears necessary and responsible to issue an arrest warrant,” the French warrant reads.

It wasn’t until May of this year that Nallalingam was arrested by the Canada Border Services Agency, assisted by the Toronto Police Service, after failing to appear for a refugee admissibility hearing. Upon taking him into custody, authorities ran the fingerprints provided in his claim against the set on file with Interpol — it was a match.

When reached for comment, Allan Lobel, legal counsel for Nallalingam, declined to comment on the proceedings.

Nallalingam is currently in custody awaiting a decision on the proposed extradition. His hearing is scheduled for May 2025.

A U.S. delegation led by Assistant Secretary of the Bureau of South and Central Asian Affairs (SCA), Donald Lu, met with Sri Lanka’s Foreign Minister, Vijitha Herath today (06).

The delegation included representatives of key agencies such as the United States Agency for International Development (USAID) and the U.S. Department of Treasury, which have played integral roles in Sri Lanka’s economic recovery.

“We congratulated Sri Lanka’s new administration and discussed shared priorities, and explored ways we can work together through tailored programs, capacity-building, and technical assistance to support Sri Lanka’s economic and governance reforms to benefit the Sri Lankan people,” U.S. Ambassador to Sri Lanka, Julie Chung said in a post on ‘X’ (formerly Twitter).

The delegation also included the USAID Deputy Assistant Administrator Anjali Kaur and Deputy Assistant Secretary of the US Department of the Treasury, Robert Kaproth.

US Assistant Secretary Donald Lu arrived in Sri Lanka yesterday (06) on an official visit while his engagements are expected to advance U.S.-Sri Lankan joint efforts to promote sustainable economic growth, combat corruption, and strengthen people-to-people ties.

In a critical update to the ongoing litigation between Hamilton Reserve Bank Ltd. (HRB) and the Democratic Socialist Republic of Sri Lanka, the Court has set deadlines to address Sri Lanka’s motion for a 45-day additional stay moved recently.

The requested stay aims to facilitate the completion of Sri Lanka’s sovereign debt restructuring, a process the nation asserts is at a critical juncture and essential to its recovery.

Earlier this week Judge Denise L. Cote of the US District Court for the Southern District of New York ordered HRB to file its opposition by 11 December 2024, with Sri Lanka’s reply due by 16 December 2024.

This litigation centres on HRB’s claim for $ 250 million in Sri Lankan international sovereign bonds (ISBs), which matured in 2022. Sri Lanka defaulted on these bonds during an unprecedented economic and humanitarian crisis. While HRB has pursued legal action, Sri Lanka has worked to restructure its debt to meet the requirements of an International Monetary Fund (IMF)-supported recovery program. The program’s objectives include restoring debt sustainability, stabilising the economy, and safeguarding vulnerable populations.

Sri Lanka’s prior Court-granted stays have been instrumental in enabling progress on its restructuring efforts. Agreements reached with official bilateral creditors in June 2024 and private bondholder groups later in the year have been critical milestones. These negotiations addressed complex issues, including aligning creditor terms with IMF program parameters and ensuring equitable treatment among stakeholders.

On 25 November 2024, Sri Lanka launched a debt exchange process allowing bondholders to swap existing bonds for restructured securities. The exchange has received strong support from major creditor groups, local financial institutions, and the IMF, all of whom urged broad participation.

Sri Lanka further argues that the additional stay is essential to finalise the debt exchange. The Government contends that an immediate judgment in favour of HRB would discourage creditor participation and derail the restructuring process. Such a judgment could also incentivise other creditors to file lawsuits, creating legal chaos and undermining the country’s recovery efforts. Sri Lanka further asserts that the stay would not harm HRB, as any delay would be compensated with accrued interest.

The broader implications of this case extend beyond Sri Lanka’s borders. The restructuring effort relies on maintaining a delicate balance of interests among creditors, financial institutions, and international policymakers. An adverse judgment could disrupt this balance, violating the comparability of treatment principle, which ensures that all creditors are treated equitably. This principle is central to the success of the IMF-supported program, which aims to foster sustainable recovery while addressing Sri Lanka’s financial challenges.

In its Memorandum of Law in Support of the Defendant’s Motion for a Further Stay of Proceedings, Sri Lanka’s legal team has also highlighted its request’s alignment with international comity and US policy objectives. US policy supports giving sovereign States negotiating in good faith the opportunity to resolve disputes consensually before enforcement of judgments. Granting the additional stay would uphold this principle and demonstrate respect for the international community’s cooperative efforts to assist Sri Lanka during its crisis. The Court’s role in managing such cases reflects its ability to weigh the broader public interest against individual claims.

Despite these efforts, HRB’s litigation poses a significant obstacle. By refusing to engage in restructuring discussions, HRB has chosen a path that contrasts with the cooperative approach of other creditors. Its actions, including threatening to block IMF funding, have raised concerns about prioritising individual claims over collective recovery efforts. If allowed to proceed, such tactics could set a troubling precedent for handling sovereign debt disputes, undermining the collaborative framework necessary for successful resolutions.

The Court’s decision on the 45-day stay will have significant implications. Beyond its immediate impact on this case, the ruling will influence how sovereign debt disputes are managed globally. It could shape how courts balance creditor rights with the practical realities of addressing defaults in nations undergoing economic recovery. By granting the stay, the Court would enable Sri Lanka to focus on completing its debt exchange, thereby advancing its fiscal recovery and upholding the principles of equitable treatment among creditors.

The stakes are high as Sri Lanka works to meet the IMF program’s requirements. Completing the debt restructuring is critical to stabilise the economy and ensure long-term growth and well-being for its citizens. The Court’s decision on this motion will affect Sri Lanka’s path forward and set a precedent for the international community’s approach to resolving sovereign debt crises.

However, criticisms of Sri Lanka’s current administration, led by President Anura Kumara Dissanayake, have overshadowed these efforts. Despite promises of transparency and efficiency in managing the debt crisis, the Government has been criticised for failing to address allegations of corruption and inefficiency in State institutions, which many argue have exacerbated the nation’s fiscal woes. Critics claim the administration has been slow to implement essential economic reforms, including reducing public sector inefficiencies and curbing excessive State expenditures. These delays have raised concerns about whether the Government can successfully navigate the restructuring process and deliver on its commitments to both domestic and international stakeholders.

Sri Lanka President Anura Kumara Dissnayake’s policy statement for the new government was passed in the parliament without a vote on Wednesday (04) after two days of debate.

In the statement, President Dissanayake outlined the major policies he intended to carry out in his five year tenure along with more than a two-third parliament majority for his Marxixts-leaned National People’s Power (NPP).

The policy statement also covered the key changes the government wants to introduce aiming to eradicate corruption and ensure social justice while focusing on a modern economy.