Category: Breaking News

IMF to work with Sri Lanka’s new President on $3 Billion loan

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The International Monetary Fund said it’s looking forward to working with Sri Lanka’s newly elected president Anura Kumara Dissanayake on the latest review of the country’s $3 billion bailout package.

“We will discuss the timing of the third review of the IMF-supported program with the new administration as soon as practicable,” the organization said in a statement after President Anura Kumara Dissanayake was sworn into office on Monday.

“We look forward to working together with President Dissanayake and his team towards building on the hard-won gains that have helped put Sri Lanka on a path to economic recovery since entering one of its worst economic crises in 2022,” the IMF added.

Dissanayake had campaigned on a promise to reopen negotiations with the IMF on the country’s big loan program. It came with deeply unpopular tax hikes and spending cuts that made the cost-of-living crisis a top issue for voters.

Reviewing the debt plan, though, risks delaying additional loans from the international organization. Sri Lanka needs to meet certain fiscal criteria before the next round of funding is released.

The country’s former president, Ranil Wickremesinghe, brokered the deal with the IMF and said upending it would be a costly mistake for the economy. Prior to the cash injection, the country faced an unprecedented economic crisis where spiraling inflation wiped out household savings and ignited protests.

Investors hope that Dissanayake will stick with the loan plan. Rizvie Salih, an executive committee member of the president’s coalition party, said Saturday that the country will remain with the program but seek modifications.

In its statement, the IMF said the recent agreement with bondholders “represents significant progress in Sri Lanka’s debt restructuring process,” adding that it’s still “subject to confirmation on comparability of treatment by Sri Lanka’s Official Creditors Committee.”

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President assures Malcolm Cardinal Ranjith on Easter attacks probe

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President Anura Kumara Dissanayake met the Archbishop of Colombo, His Eminence Malcolm Cardinal Ranjith and gave an assurance over the investigations into the Easter Sunday attacks.

During his visit to the Archbishop’s House, Colombo, the President inquired about His Eminence’s well-being and engaged in a brief conversation.

His Eminence Malcolm Cardinal Ranjith, Archbishop of Colombo, expressed his congratulations to President Anura Kumara Dissanayake on his election as President, reflecting the will of the majority in Sri Lanka.

He acknowledged that the people have entrusted the new President with the significant responsibility of bringing about the necessary changes in the country, a task that may prove to be challenging. The Cardinal assured the President of his full support and blessings in this endeavour and urged him to prioritize the needs of the poor in his efforts.

In response to a journalist’s question, His Eminence Malcolm Cardinal Ranjith mentioned that the President had assured him of his commitment to thoroughly investigate the Easter attacks and to take steps towards uncovering the truth.

Auxiliary Bishops of Colombo His Eminence Maxwell Silva, His Eminence J D Anthony, Rev. Father Anton Ranjith, Spokesperson of the Archdiocese of Colombo Rev. Father Cyril Gamini Fernando, Rev. Father Joseph Indika, Rev. Father Jude Samantha Fernando, MP Vijitha Herath, Former MP Bimal Ratnayake and President’s Counsel Rienzie Arsekularatne were also present at the moment.

Following this visit, President Dissanayake also visited the Dawatagaha Mosque in Colombo, where he participated in religious ceremonies and received blessings.

EU polls monitors accuse Ranil of distorting playing field

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The European Union polls monitors have accused former President Ranil Wickremesinghe of distorting the playing field during campaigning ahead of the Presidential election.

Issuing a preliminary statement on the 2024 Presidential Election, the EU Election Observation Mission (EU EOM) said that salary increments for public sector employees, social benefit schemes, an interest-free student loan plan and monetary support programmes for small businesses, all announced by the executive during the campaign and covered in a positive tone on state media, were aligned with the incumbent’s re-election bid.

“The line between governing and campaigning was further blurred by the participation of state and local officials in the incumbent’s rallies. This was aggravated by the absence of elected provincial and local councils,” the EU EOM said.

Nacho Sánchez Amor, Member of the European Parliament from Spain and Chief Observer of the European Union Election Observation Mission (EU EOM) to Sri Lanka, presented the mission’s preliminary findings for the 21 September presidential election.

“The 2024 presidential election was a pivotal step for Sri Lanka, as the first electoral contest, after the unprecedented economic and political crises of 2022. The Election Commission conducted the process independently and with resolve, ensuring transparency at all key stages of the election. The election itself offered voters genuine political choices, and the campaign was largely peaceful and energetic,” he said.

However, he said the advantage of incumbency tilted the playing field, while some manipulative digital campaigns aimed to confuse voters.

The Chief Observer noted that the election day was orderly and calm, with well-trained polling staff efficiently facilitating voting in all polling stations observed by the EU EOM.

The first count of the ballots was equally well-organised, ensuring the integrity of the process, although at times the premises were crowded. The presence of citizen observers and party agents in polling stations, counting centres and at the tabulation of results added to the transparency of the process.

The Election Commission of Sri Lanka (ECSL) managed its responsibilities transparently, earning stakeholders’ trust. The Commission worked closely with civil society and monitored the campaign, despite having limited enforcement powers. It also took public stances against the misuse of state resources and addressed other campaign violations, noted the Chief Observer.

The legal framework provides a solid foundation for democratic elections, with recent reforms improving privacy protections and regulating campaign finance. However, new and proposed laws create powers which could restrict political freedom.

The campaign was competitive, and fundamental freedoms were broadly respected. The media coverage of the presidential contest was lively, yet media offered very limited non-partisan scrutiny and analysis, which would have helped voters to make an informed choice.

National fact-checkers and civil society organisations made a positive contribution to the different stages of the election and strengthened transparency. They were agile in flagging disinformation, tracking violations of election rules and calling public attention to the misuse of incumbency.

“While the election framework supports a democratic election, improvements could be made to refine the electoral process, including by enhancing transparency in political finance and advancing women’s participation in public and political life,” added Chief Observer Sánchez Amor.

The EU EOM has been present in Sri Lanka since 14 August, with over 70 international observers deployed across all nine provinces. The mission will continue to observe the post election environment and will publish a final report, including recommendations for improving future elections, in the coming months.

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President Anura pledges better Sri Lanka; urges collective responsibility

Posted on | by TELO Admin

Impresses the nation with simple swearing-in ceremony sans fanfare of pomp and pageantry fancied by his predecessors

Commits to reinforce democracy through structural reforms and legal improvements

Reaches out to private sector saying it plays crucial role in nation’s rebuilding efforts; assures support to businesses and entrepreneurs

Admits there were many who didn’t vote for him but assures he will endeavour to win their trust
Promises cleaner politics and improving political culture

Calls on all Sri Lankans to contribute to collective effort needed to rebuild country

Stresses Sri Lanka needs international support

Newly elected President Anura Kumara Dissanayake yesterday pledged to reinforce democracy through structural reforms and legal improvements, stressing that the democratic process does not end with voting and electing leaders.

“By voting and choosing a leader alone, the democratic process does not end. We must empower democracy by strengthening structures and laws,” Dissanayake said. He pledged to do his utmost to advance the country’s democracy during his tenure.

President Dissanayake made this assurance during his inaugural speech, after he was sworn in as the ninth Executive President of Sri Lanka during a formal ceremony at the Presidential Secretariat in Colombo yesterday.

The ceremony was sans fanfare of pomp and pageantry fancied by his predecessors. Members of the clergy, a host of diplomats, members of the National People’s Power (NPP), and officials were present at the ceremony. Outside the Presidential Secretariat, people queued up to get a glimpse of President Dissanayake.

During his address, the new President acknowledged that the country is facing significant challenges, which he plans to tackle by promoting cleaner politics and improving the nation’s political culture. “We are inheriting a country with many challenges. Politics must become cleaner, and the political culture must improve. I am ready to dedicate myself to this task,” he affirmed.

President Dissanayake admitted there were many who didn’t vote for him but assured he will endeavour to win their trust. “Democracy helped me win. Some voted for me, and others didn’t. But my pledge is to work hard to win the trust of those who didn’t vote for me as well. This is an important part of my Presidency,” he emphasised.

Reflecting on the public’s declining trust in politicians, Dissanayake vowed to restore respect for politics and win back the people’s trust. “People have a poor impression of politics in Sri Lanka. My aim is to do everything possible to make people once again feel respect for politicians and regain their trust,” he promised.

In a humble reflection, Dissanayake emphasised that the ongoing crises cannot be solved by a single person, Government, or political party. He acknowledged his own limitations, stating: “I have said before, I am no magician. I am a common man with both capabilities and incapabilities. There are things I am knowledgeable about and things I am not, but I will make it my priority to gain the knowledge and skills needed to make the right decisions for the country’s betterment.”

He called on all Sri Lankans to contribute to the collective effort needed to rebuild the country, emphasising the importance of public participation in the process. “People have a great responsibility in this effort as well. I expect everyone’s support to help me fulfil the responsibilities of this post,” he said.

The new President also reached out to the private sector. “Businesses and entrepreneurs play a crucial role in the nation’s rebuilding efforts. We trust they will actively support the Government’s initiatives and contribute with the strength and dedication. They also need all the support they can get. We will give them that support and encouragement,” he stressed.

President Dissanayake assured the public that he will take decisive action to address the country’s challenges. “From my actions, I will make it clear to the citizens that I will take up and complete the tasks required to overcome the obstacles facing our country,” he vowed.

Addressing Sri Lanka’s position in the global community, Dissanayake highlighted the need for international cooperation, despite the complexities of global geopolitics. “We need international support. Despite the challenges of geopolitics, our expectation is to engage with the world for the benefit of the country,” he said. He reaffirmed that Sri Lanka should not be isolated and must move forward with other nations, assuring that he will make decisions as needed to ensure the country’s progress on the global stage.

In a gesture of respect, Dissanayake also commended outgoing President Ranil Wickremesinghe for accepting the people’s mandate and ensuring a smooth and democratic transfer of power. “I commend Ranil Wickremesinghe for his dedication to ensuring this democratic transition,” President Dissanayake added.

Apparel…

Exports to other markets rose by 31% to $ 73.32 million.

January to August cumulative exports to the US rose by 1.82% to $ 1.26 billion. Exports to the EU (excluding exports to the UK) remained down by 1.16% to $ 914.71 million. Exports to the UK have increased by 8.46% to $ 462.43 million and to other countries by 5.36% to $ 513.93 million.

Though August shows a strong recovery, the performance lags behind the record $ 535 million achieved in the same month of 2022 and $ 449 million in 2021. Last year, apparel exports were down by 19% to $ 4.4 billion from $ 5.48 billion in 2022.

Chinese…

Following is the full text of President Xi’s letter.

“On the occasion of your inauguration as President of the Democratic Socialist Republic of Sri Lanka, I would like to extend my sincere congratulations and best wishes to you on behalf of the Chinese Government and the Chinese people.

China and Sri Lanka are traditional friendly neighbours. Over the past 67 years, since our two countries established diplomatic relations, both sides have been lending mutual understanding and support to each other, setting a fine example of friendly coexistence and mutually beneficial cooperation between countries of different sizes.

I attach great importance to the development of China-Sri Lanka relations, and stand ready to work with you to jointly carry forward our traditional friendship, consolidate political mutual trust, and achieve more fruitful outcomes on high-quality Belt and Road cooperation so as to advance the sustained and steady growth of the China-Sri Lanka strategic cooperative partnership based on sincere mutual assistance and everlasting friendship and bring more benefits to the two peoples.

Wish Your Excellency every success and all the best.”

US…

“The United States remains committed to supporting Sri Lanka as it builds a stable, prosperous, and cohesive society. We look forward to working with President-elect Anura Kumara Dissanayake to further strengthen our bilateral ties, which are based on shared democratic values and respect for national sovereignty. We also look forward to promoting economic growth, security, and deeper cooperation between our nations,” the statement added.

Colombo…

The closing was commendable after the market plunged by over 200 points in early trading.

There has been a general view that listed equity investors were wary if either incumbent President Ranil Wickremesinghe or Opposition Leader Sajith Premadasa wasn’t elected at last Saturday’s poll. However, the late rally proved a change in sentiment; the credence of which hinges on the market sustaining the upward trajectory going forward.

First Capital said, despite experiencing a volatile trading session, the Colombo bourse closed the session in green for the fifth consecutive day as investors continued the positive sentiment from the previous week following the Presidential election.

The benchmark index, ASPI, experienced a steep decline of over 180 points during the first few minutes, yet recovered gradually during the day and closed the session at 11,097, gaining 130 points. Banking sector companies and blue-chip stocks gained momentum where COMB, HNB, SAMP, SPEN, and MELS emerged as the top positive contributors to the index. Turnover saw a decline from the previous session, but marked a 2.6% increase from the month’s average amidst improved participation of retail investors.

Moreover, the Banking sector solely contributed 36% to the overall turnover, whilst the Capital Goods and Diversified Financials sectors jointly contributed 32% to total turnover.

Foreign investors remained net sellers, with a net outflow of Rs. 5.2 million.

NDB Securities said indices closed in green as a result of price gains in counters such as Hatton National Bank, Commercial Bank, and Sampath Bank.

High net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Commercial Bank, Hatton National Bank, and Sampath Bank, whilst retail interest was noted in LOLC Finance, Browns Investments, and Softlogic Capital.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Hatton National Bank, and Sampath Bank), whilst the sector index gained 2.31%. The share price of Commercial Bank increased by Rs. 2.50 to Rs. 90.90. The share price of Hatton National Bank gained Rs. 5.50 to Rs. 174.25. The share price of Sampath Bank moved up by Rs. 1.40 to Rs. 74.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index increased by 0.97%. LOLC Finance and Browns Investments were also included amongst the top turnover contributors. LOLC Finance closed flat at Rs. 5.50. The share price of Browns Investments also closed flat at Rs. 5.30.

Erik Solheim…

“The left-wing candidate Anura Kumara Dissanayake was elected President of Sri Lanka this weekend. This is the first time since independence that the Sri Lankan people elect a party and a candidate from outside the traditional elite,” he noted via a post on ‘X’ yesterday.

Solheim noted that this unprecedented win reflects the widespread discontent felt by underprivileged Sri Lankans during the country’s economic crisis as well as the popular support for AKD’s anti-corruption stance and advocacy for increased welfare.

“Dissanayake, or AKD as he is affectionately called, comes from very humble upbringings in the Anuradhapura district. His party or coalition have never in the past been close to power. The result is a testimony to the pain underprivileged Sri Lankans have felt during the economic crisis. There is widespread sympathy for AKD’s fight against corruption and his call for more welfare for the people,” he added.

However, Solheim highlighted challenges ahead for the newly elected President. “The weakness of the election winner is that his coalition has very little experience running a complicated State like Sri Lanka. They will also struggle to implement their many promises in a most challenging economic environment,” he claimed.

He also suggested that AKD’s camp may struggle to achieve a majority in the Parliament.

“This election is certain to raise eyebrows in many foreign capitals. Diplomats should think twice. AKD has reached out to India, China, and the West during his campaign. We should all reciprocate and help him become a successful leader. A more prosperous, peaceful, and greener Sri Lanka is in everyone’s interest. AKD deserves help on that journey,” he said.

Solheim also praised the peaceful nature of the election, noting that it was the first in a long time where chauvinism and ethnic extremism played no role during the campaign.

“Many western nations can learn from the peacefulness of the election and the grace the main losing candidates Sajith Premadasa and Ranil Wickremesinghe showed towards the winner,” he pointed out.

Reflecting on Wickremesinghe’s tenure, Solheim credited him with restoring stability to Sri Lanka amidst an unprecedented economic crisis. “Wickremesinghe will go into history as the man who restored normalcy to Sri Lanka in the midst of the all-time economic meltdown. Hardly any leader in world history has been re-elected on the basis of implementing an IMF program. We will see more of Ranil,” Solheim said.

The proposal was presented by Wickremesinghe himself.

Following the meeting, the former President called for extending invitations to various parties, including the Samagi Jana Balawegaya (SJB), to join this unified opposition alliance, designed to effectively respond to upcoming electoral and political developments.

US Officially Congratulates AKD On Election Win

Posted on | by TELO Admin

The United States congratulated President-elect Anura Kumara Dissanayake on his victory in the Sri Lankan presidential election, as confirmed by the vote results on September 22.

US State Department Spokesperson Matthew Miller said that the US commends the people of Sri Lanka for peacefully exercising their right to vote.

This election is a testament to the strength of Sri Lanka’s democratic institutions and the commitment of its citizens to shaping their future through peaceful and democratic means, he said in a statement.

“The United States remains committed to supporting Sri Lanka as it builds a stable, prosperous, and cohesive society. We look forward to working with President-elect Anura Kumara Dissanayake to further strengthen our bilateral ties, which are based on shared democratic values and respect for national sovereignty. We also look forward to promoting economic growth, security, and deeper cooperation between our nations,” added the US State Department Spokesperson.

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Sri Lanka’s new President appoints Chinese-educated defence secretary

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Sri Lanka’s newly elected President Anura Kumara Dissanayaka appointed retired Air Vice Marshal Sampath Thuyacontha, who had got his higher education in China, as the new defence secretary replacing an ex-army general.

Thuyacontha has completed his Master’s degree in Defence Studies at the National Defence University of China. He had also served as the former Defence Advisor at the Sri Lankan High Commission in Pakistan.

He has also served as the former commanding officer of the Chinese Harbour Air Force College.

Defence Secretary post is once of the important portfolio in the island nation as it deals with a geopolitical cold war due to Sri Lanka’s strategic location in the Indian Ocean.

India has raised increasing concerns with successive Sri Lankan government on Chinese vessels coming to Sri Lankan shores. The last administration under former president Ranil Wickremsinghe banned Chinese vessels coming to the island nation for research purposes due to strong security concerns raised by India.

President Dissanaya’s Marxist Janatha Vimukthi Peramuna (JVP) has maintained a strong anti-Indian sentiment and opposed key Indian projects in Sri Lanka.

Thuyacontha succeeds former army general Kamal Gunaratne, who held the defence secretary post since 2019 after being appointed by former president Gotabaya Rajapaksa.

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Provincial governors start tendering their resignations

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Two provincial governors tendered their resignations following the announcement of Anura Kumara Dissanayake’s victory at the presidential election.

Southern province’s Lakshman Yapa Abeywardena and Maheepala Herath of northcentral province resigned yesterday (22).

Other governors are expected to follow suit today, according to political sources.

Xi says wants to deepen BRI cooperation with Sri Lanka under new leader

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Chinese President Xi Jinping on Monday said he hoped to broaden cooperation with Sri Lanka under his Belt and Road infrastructure initiative (BRI) as he congratulated the island nation’s new leader Anura Kumara Dissanayaka.

Dissanayaka, a self-avowed Marxist, took his oath at the Presidential Secretariat in Colombo on Monday, vowing to restore public faith in politics.

The country is emerging from a years-long economic collapse blamed partly on struggling high-debt Chinese mega-projects coordinated through the BRI, the massive infrastructure project that is a central pillar of Xi’s bid to expand his country’s clout overseas.

“I attach great importance to the development of China-Sri Lanka relations and am willing to work with Mr. President to continue our traditional friendship (and) enhance mutual political trust,” Xi said in a message to Dissanayaka, according to state broadcaster CCTV.

Xi said he hoped bilateral cooperation under his flagship BRI would “bear more fruit”, CCTV added.

He said Beijing would “promote the steady progress of sincere mutual assistance between China and Sri Lanka as well as our age-old strategic cooperative partnership, and create more benefits for the peoples of both countries”.

Western critics accuse China of using the BRI to enmesh developing nations in unsustainable debt to exert diplomatic leverage over them or even seize their assets.

But a chorus of leaders — as well as research by leading global think tanks like London’s Chatham House — have refuted the “debt trap” theory.

In December 2017, unable to repay a huge Chinese loan, Sri Lanka handed its Hambantota port in the south of the island to a Beijing company on a 99-year lease for $1.12 billion.

And the country defaulted on its foreign borrowings in 2022 during a crisis that caused months of food, fuel and medicine shortages.

China is the nation’s largest bilateral creditor, its loans accounting for $4.66 billion of the $10.58 billion that Sri Lanka has borrowed from other countries.

Last year, the International Monetary Fund — the international lender of last resort — approved a $2.9 billion bailout loan for Sri Lanka. Beijing also agreed to restructure its loans to the country.

And this month, Sri Lanka secured a deal with international bondholders to finalise a prolonged debt restructuring.

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Anura Kumara Dissanayake sworn in as President of Sri Lanka

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Anura Kumara Dissanayake has been sworn in as the 9th Executive of the Democratic Socialist Republic of Sri Lanka, a short while ago.

He was ceremonially sworn in as the country’s new President before Chief Justice Jayantha Jayasuriya at the Presidential Secretariat in Colombo.

The swearing in ceremony commenced following Dissanayake’s arrival at the Presidential Secretariat with a large number of party supporters and well-wishers gathered outside to welcome him.

After taking oath as the new President in a simple ceremony, Dissanayake delivered a brief statement emphasizing his commitment to the nation and the citizens of Sri Lanka.

The Election Commission declared 56-year-old Anura Kumara Dissanayake the winner last night after the second round of counting.

Dissanayake created history on Sunday by winning the Sri Lankan presidential election. Sri Lanka’s Election Commission declared him the winner after the second round of counting. Dissanayake defeated Sajith Premadasa of Samagi Jana Balawegaya (SJB), his closest rival.

In the presidential election held on Saturday, no candidate got more than the required 50% votes in the first round of counting. Due to this, the Election Commission ordered a second round of counting, in which National People’s Power (NPP) leader Anura Kumara Dissanayake won.

Popularly known as “AKD” in Sri Lanka, Dissanayake became Sri Lanka’s first President elected in a run-off. His party Janatha Vimukthi Peramuna (JVP) was on the margins for a long time, but this victory has given a new identity to the party.

The rise of the party under Dissanayake’s leadership has been based on demands for anti-corruption and change in political culture.

Dissanayake hails from rural Thambuttegama in the North Central Province and holds a Bachelor of Science degree from the University of Kelaniya in suburban Colombo.

He joined the JVP (Janatha Vimukthi Peramuna) in 1987, when the anti-Indian insurgency was at its peak. Throughout his political career, he has fought against corruption and for people’s rights.

Anura Kumara Dissanayake’s victory represents a major shift in Sri Lanka’s political landscape. His rise to the presidency, especially at a time of economic and political challenges in the country, shows that the public is looking for a new leadership style and political vision.