Category: Featured Headlines

Sri Lanka has reaffirmed its commitment to the one-China principle.

According to a joint statement issued by Sri Lanka and China following the completion of President Ranil Wickremesinghe’s four-day visit, Sri Lanka has once again recognized that the government of the China is the sole legal government representing the whole of China and Taiwan is an inalienable part of China’s territory, and reiterated that it supports the efforts by the Chinese Government to safeguard its sovereignty and territorial integrity, and opposes any form of “Taiwan independence.”

The statement added that Sri Lanka reiterated that it will never allow any separatist activity against China on Sri Lanka’s soil.

Meanwhile, the joint statement noted that the Chinese side reaffirmed its commitment to the principle of amity, sincerity, mutual benefit and inclusiveness and the foreign policy of forging friendship and partnership in the neighbourhood.

It added, China firmly supports Sri Lanka in upholding its independence, sovereignty and territorial integrity, respects and supports Sri Lanka’s independent choice of development path that suits its national conditions.

Women’s Rights Groups and Activists across Sri Lanka on Friday demanded the withdrawal of a range of repressive laws and bills, especially focusing on the draconian Online Safety Bill and the Anti Terrorism Bill which they would result in the “end of democracy and fundamental rights”.

“Both Bills have sweeping provisions to seriously curtail and even violate the freedoms of expression, free speech, right to information, assembly and association. Both present fatal threats to democracy and fundamental rights in this country,” the groups and activists said in a strongly worded statement.

“The government’s intention in passing laws that violate the basic values of democratic governance in our Constitution, shows that they want to change course, and establish a political dictatorship,” the statement said.
The Supreme Court is currently hearing 45 petitions against the Online Safety Bill. The Anti-Terrorism Bill has been gazetted twice, but has not yet been placed before Parliament.

“We call upon the govt to WITHDRAW ALL these bills, and engage in a public conversation with qualified persons and citizens on public policy in these important areas. We call upon ALL Members of Parliament to fulfill the above stated Constitutional mandate and VOTE AGAINST these repressive laws,” the statement said.

David Cameron is facing criticism for promoting a Chinese-funded port city in Sri lanka amid concerns that it will give Beijing a significant foothold in the Indo-Pacific, The Times reported.

It was revealed that the former prime minister flew to the Middle East in late September to speak at two investment events for Port City Colombo, having visited the site in person this year.

The city is a major part of President Xi’s Belt and Road initiative, China’s global infrastructure strategy, and has been billed as the Chinese-funded rival to Singapore.

The International Monetary Fund (IMF) has reached Staff Level Agreement with the Sri Lankan authorities on economic policies to conclude the first review of the 48-month Extended Fund Facility-supported program, the global lender said.

The conclusion of the review would allow Sri Lanka to access to about US$330 million worth second tranche of the $3 billion deal in financing once the review is approved by IMF Management and IMF Executive Board.

The IMF did not give any detail on the schedule date for the IMF Executive Board meeting to consider the approval.

“Macroeconomic policy reforms are starting to bear fruit and the economy is showing tentative signs of stabilization,” the IMF said in its statement after reaching the Staff Level Agreement.

“Sustaining the reform momentum and addressing governance weaknesses and corruption vulnerabilities are critical to put the economy on a path towards lasting recovery and stable and inclusive growth,” it said.

The global lender also said the completion of the review by the IMF’s Executive Board requires the implementation by the authorities of all prior actions and the completion of financing assurances reviews.

Here is the IMF press release on reaching the staff level agreement:

Washington DC: After constructive discussions with the authorities in Colombo and during the Annual Meetings in Marrakech, IMF Senior Mission Chief for Sri Lanka Mr. Peter Breuer and Deputy Mission Chief Ms. Katsiaryna Svirydzenka issued the following statement:

“The IMF team reached a staff-level agreement with the Sri Lankan authorities on the first review under an economic reform program supported by a 48-month Extended Fund Facility (EFF) arrangement . The arrangement was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.

“The staff-level agreement is subject to the approval by IMF management and the IMF Executive Board in the period ahead, contingent on: (i) the implementation by the authorities of all prior actions; (ii) the completion of financing assurances reviews, which will include confirming whether adequate progress has been made with debt restructuring to give confidence that the restructuring will be concluded in a timely manner and in line with the program’s debt targets.

“Upon approval by the IMF Executive Board, Sri Lanka would have access to SDR 254 million (about US$330 million), bringing the total IMF financial support disbursed under the arrangement to SDR 508 million (about US$660 million).

“The authorities remain committed to the ambitious reform agenda under the EFF and their reform efforts have been commendable, including rapid disinflation and a significant fiscal adjustment expected by the end of this year. Program performance at end-June was satisfactory, with all quantitative performance criteria for end-June met, except the one on expenditure arrears. All indicative targets were also met except the one on tax revenues. Most structural benchmarks were either met or implemented with delay by end-September 2023. Notably, the authorities published on time the Governance Diagnostic Report . Sri Lanka is the first country in Asia that has undergone the IMF Governance Diagnostic exercise. Progress is still ongoing on the revenue measures to support the fiscal consolidation during 2024 in line with program parameters.

“The economy is showing tentative signs of stabilization. Inflation is down from a peak of 70 percent in September 2022 to 1.3 percent in September 2023, gross international reserves increased by $1.5 billion during March-June this year, and shortages of essentials have eased. Despite these early signs of stabilization, full economic recovery is not yet assured. Growth momentum remains subdued, with real GDP in the second quarter contracting by 3.1 percent on a year-on-year basis and high-frequency economic indicators continuing to provide mixed signals. Sri Lanka’s external position has weakened as a result of prolonged debt restructuring discussions, and reserve accumulation has slowed in recent months. Agreeing on debt treatments consistent with restoring debt sustainability quickly will be key to resolving uncertainty that is constraining Sri Lankan businesses and external financing.

“Sustaining the reform momentum is of paramount importance in steering the economy towards a sustained recovery and fostering stable, inclusive economic growth. We welcome the authorities’ commitment to increase revenues and signal better governance by adopting needed tax measures, strengthening tax administration, and actively eliminating tax evasion. Maintaining cost recovery in fuel and electricity pricing helps mitigate fiscal risks arising from state-owned enterprises. Further strengthening the social safety net remains critical to protect the poor and the vulnerable. While inflation has decelerated faster than expected, continued monitoring is warranted to help anchor inflationary expectations and support macroeconomic stability. Against continued external uncertainty, it remains important to rebuild external buffers through strong reserves accumulation.

“Following the authorities’ domestic debt operation, the critical next step is to secure an agreement with official creditors on a debt treatment consistent with the IMF Executive Board-approved program parameters and debt targets. We have taken note of a tentative agreement between Sri Lanka and the Export-Import Bank of China and look forward to analyzing the details when we receive them. We urge all official creditors to move forward and agree on an appropriate debt treatment in line with the financing assurances they provided. We understand negotiations between commercial creditors and Sri Lanka are ongoing and emphasize the need to restore debt sustainability in a robust manner. Delays risk worsening the economic outlook for Sri Lanka, widening its financing gaps, hindering its return to sustainable growth, and thereby reducing its capacity to repay.

“The authorities’ commitment to implement key recommendations of the recently published Governance Diagnostic Report is a welcome step. Concrete steps towards addressing corruption risks and strengthening accountability will be essential for rebuilding economic confidence and making growth more robust and inclusive.

“The IMF team held meetings with President and Finance Minister Ranil Wickremesinghe, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, State Minister Shehan Semasinghe, Secretary to the Treasury K M Mahinda Siriwardana, and other senior government and CBSL officials. The IMF team also met with Parliamentarians, representatives from the private sector, civil society organizations, and development partners.

“The team would like to thank the authorities for the excellent collaboration and constructive discussions.”

Tamil parties in Sri Lanka denied a fake letter purportedly sent by them to Tamil Nadu actor Vijay Chandrasekhar alias ‘Vijay’ asking him to stop the screening of one of his films as otherwise they would not be able to bring people for a mass agitation planned for the same day.

EPRLF chairman and former MP Suresh Premachandran told the Daily Mirror that the signatures of the political leaders of various Tamil parties had been placed fraudulently on this fake letter and circulated on social media, thus misleading the public.

“We have not sent such a letter,” he said.