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Chairman of the Sri Lanka Freedom Party (SLFP) Maithripala Sirisena has informed Justice Minister Wijedasa Rajapksha in writing that he and his party fully support the proposed draft of the 21st Amendment to the Constitution.

In a letter addressed to the Minister of Justice, Prison Affairs and Constitutional Reforms, the former President states that the SLFP agrees to all amendments in the proposed draft and also submits several other proposals too for consideration.

The ex-President’s letter refers to the Justice Minister’s letter dated 24th May 2022, by which he had forwarded the draft bill of the 21st Amendment to the Constitution for his observations.

“I wish to place on record that my party and I fully support the proposed 21st Amendment to the Constitution,” he says.

Whilst agreeing to all of the amendments in the Justice Minister’s proposed draft, Mr. Sirisena also proposes the following amendments for his consideration:

1. Part II of the Schedule to Article 41C in the proposed Draft: Include the Members of the Monetary Board and Secretaries of Ministries.

2. Article 41G (3) of the Constitution : make amendments to provide for the Rules of the Constitutional Council to be made within one month of the constitution of the council;

3. Similar time frames should be prescribed in respect of Rules to be made by all Commissions established in terms of the Constitution established in terms of the Constitution;

4. Article 44(2) of the Constitution: to be amended to provide for the President to only hold the portfolio of the Minster of Defence;

5. Article 47 of the Constitution: to be amended to provide for 30 Ministries on a pre-identified, rational basis;

6. Article 43 of the Constitution: to be amended to provide for the grant of Pardon to be carried out in terms of the recommendations by a body established by law, appointed by the President, on the recommendation of the Constitutional Council;

7. Article 91 of the Constitution: to be amended to provide for a conviction under Section 9 of the Declaration of Assets and Liabilities Act. No 1 of 1975, as a disqualification for election as a Member of Parliament.

8. Article 92 of the Constitution: to be amended to provide for a conviction under Section 9 of the Declaration of Assets and Liabilities Act. No 1 of 1975, as a disqualification for election to the office of President;

9. Inclusion of a provision for the appointment of Governors of the Provinces, Ambassadors and Heads of Missions to be done on the ‘advice’ of the Prime Minister in consultation with the Cabinet of Ministers.

10. Inclusion of a new provision to prohibit the appointment of persons as secretaries to ministries form outside of the Public Service.

Committee of Medical Faculty Student Activists are currently engaged in a protest demanding a solution to the current economic crisis and social instability.

The protest commenced from near Vihara Maha Devi Park.

The Medical students represented many universities in the country, and the protesters carried placards and marched towards Pettah through technical junction.

India has gifted 15,000 liters of kerosene to fishermen in several islets in the North of the island as the currency collapsed after two years of money printing by the central bank creating forex and fuel shortages.

“15000 liters of kerosene gifted to 700 fishermen of Delft, Nainativu, Eluvaitivu & Analitivu,” India’s High Commission in Colombo said in a twitter.com message.

India’s High Commissioner in Colombo Raakesh Natraj and Fisheries Minister Douglas Devananda had initiated the distribution.

A part of the fuel will also go power a ferry service between the island, the Indian High Commission said.

In a separate statement the Indian High Commission said a consignment of kerosene was sent to Colombo on the Indian landing craft (INS) Gharial for the use of fishermen in Sri Lanka.

The kerosene will be distributed to fishermen a several fishery harbors.

The JVP says a plausible solution to the country’s current economic situation must be found.

Speaking to media today, Secretary of the Party Tilvin Silva said making short sighted decisions as a quick remedy to the problem will result in making wrong choices and worsening the country’s situation.

Silva said many JVP supporters have requested him to take up a post in the government and develop the country.

However he explained that major problems cannot be solved through short-term solutions.

Tilvin Silva commented that nobody was going to come and save the people of Sri Lanka from its worst economic crisis in decades.

He called on the people to not fall for false propaganda of politicians and vote for a responsible party.

Standard $ Poor’s, a rating agency, said it has downgraded two Sri Lanka sovereign bonds due in 2025 and 2027 to default (D) after interest coupons were missed.

Fitch had earlier downgraded Sri Lanka sovereign bonds to D on cross default clauses after the missed payment.

The full statement is reproduced below:

Overview

The Sri Lanka government remains in default on some foreign currency obligations, including international sovereign bonds (ISBs) on which it has missed interest payments.

We do not expect the government to make ISB interest payments within 30 calendar days after their due dates.

Following missed interest payments due on May 3 and May 11, we have lowered the ratings on the affected bonds to ‘D’.

We are affirming our ‘SD/SD’ foreign currency and ‘CCC-/C’ local currency ratings on Sri Lanka. The outlook on the local currency ratings is negative.

Rating Action

On May 27, 2022, S&P Global Ratings affirmed its long-term and short-term foreign currency sovereign ratings on Sri Lanka at ‘SD/SD.’ At the same time, we affirmed our ‘CCC-‘ long-term and ‘C’ short-term local currency sovereign ratings. The outlook on the local currency ratings remains negative.

In addition, we lowered to ‘D’ from ‘CC’ the issue ratings on the following bonds with missed interest payments in May:

US$1.5 billion, 6.85% bonds due Nov. 3, 2025.

US$1.5 billion, 6.20% bonds due May 11, 2027.

Our transfer and convertibility assessment at ‘CC’ is unchanged.

Outlook

Our foreign currency rating on Sri Lanka is ‘SD’ (selective default). We do not assign outlooks to ‘SD’ ratings because they express a condition and not a forward-looking opinion of default probability.

The negative outlook on the local currency ratings reflects the high risk to commercial debt repayments over the next 12 months in the context of Sri Lanka’s economic, external, and fiscal pressures.

Downside scenario

We could lower the local currency ratings if there are indications of nonpayment or restructuring of Sri Lankan rupee-denominated obligations.

Upside scenario

We could revise the outlook to stable or raise the local currency ratings if we perceive that the likelihood of the government’s local currency debt being excluded from any debt restructuring has increased. This could be the case if, for example, the government receives significant donor funding which gives it some time to implement immediate and transformative reforms.

We would raise our long-term foreign currency sovereign credit rating upon completion of the government’s bond restructuring. The rating would reflect Sri Lanka’s post-restructuring creditworthiness. Our post-restructuring ratings tend to be in the ‘CCC’ or low ‘B’ categories, depending on the sovereign’s new debt structure and capacity to support that debt.

Rationale

Sri Lanka’s external public debt moratorium prevents payment of interest and principal obligations due on the government’s ISBs. As such, interest payments due May 3, and May 11, on its 2025 and 2027 ISBs, respectively, would have been affected. Following the missed payments, and given our expectation that payment will not be made within 30 calendar days of the due date, we have lowered the issue ratings on these bonds to ‘D’ (default).

Overdue coupons now include the following four bonds:

US$1.25 billion, 5.75% bonds due 2023

US$1.25 billion, 6.75% bonds due 2028
US$1.5 billion, 6.85% bonds due 2025
US$1.5 billion, 6.20% bonds due 2027