“Unilateral Mandates are Unproductive”: Sri Lanka Calls for Dialogue at UN Human Rights Council

Sri Lanka voiced its opposition to unilateral human rights mandates at the UN Human Rights Council.

Dilini Lenagala, Minister-Counsellor at Sri Lanka’s Permanent Mission in Geneva, delivered the statement which emphasized collaboration over coercion.

Lenagala urged the Council to prioritize constructive dialogue with member states. She argued that acknowledging progress made through domestic efforts is crucial for fostering positive change.

Sri Lanka’s statement directly challenged the practice of imposing country-specific human rights mandates. Lenagala argued that such mandates, implemented without a nation’s consent, are divisive and unproductive. They hinder progress by creating an atmosphere of polarization.

In contrast, Sri Lanka called for a collaborative approach based on the guiding principles enshrined in UN General Assembly Resolution 60/251 and the “I.B. package.” These documents emphasize dialogue, cooperation, and respect for national sovereignty when addressing human rights concerns.

Sri Lanka reiterated its belief that the Human Rights Council’s work should be guided by principles of sovereign equality, respect for territorial integrity, and non-interference.

Lenagala emphasized that pursuing unilateral mandates undermines these principles and hinders real progress on human rights issues.

Russia discusses compensation for Sri Lankans killed while fighting

Russia discussed the payment of compensation for Sri Lankans killed while deployed in the Russian Armed Force to fight against Ukraine.

A high-level delegation led by State Minister of Foreign Affairs Tharaka Balasuriya visited the Russian Federation from 26 to 27 June 2024 and had discussions with the Deputy Minister of Foreign Affairs of the Russian Federation Andrey Rudenko and the Deputy Minister of Defense of the Russian Federation Colonel General A. V. Fomin regarding Sri Lankans who are deployed in the Russian Armed Forces on contractual basis.

The interactions centered on the 17 Sri Lankans killed in action, payment of compensation for the deceased and the wounded, plight of the uncontactable Sri Lankans, possibility of voluntary returns, early termination of contracts and regularization of remuneration.

During the meeting, Sri Lanka proposed to establish a joint working committee comprising of officials from the two sides to meet regularly to address issues and concerns of the Sri Lankans, who have been deployed. Both sides agreed to continue the engagements on the matters at hand.

The high-level delegation led by the State Minister included Members of Parliament Dayasiri Jayasekera and Gamini Waleboda, Secretary of the Ministry of Defense General G. D. H. Kamal Gunaratne, Charge d’Affaires of Sri Lanka to the Russian Federation Ambassador P. M. Amza, Additional Solicitor General Harippriya Jayasundara, Director General, Consular Affairs, Ministry of Foreign Affairs Sisira Senavirathne, former Ambassador Dr. Saman Weerasinghe and officials of the Embassy of Sri Lanka in the Russian Federation.

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Adani Power Project in Sri Lanka: SJB Accuses Government of Financial Fraud

Sri Lanka’s main opposition party, the Samagi Jana Balawegaya (SJB), has raised concerns over the government’s approval of a project to develop wind power stations in Mannar and Pooneryn with Adani Green Energy Limited of India.

Former SJB MP Ajith P. Perera accused the government, particularly President Ranil Wickremesinghe and Minister of Power and Energy Kanchana Wijesekera, of facilitating a large-scale financial fraud by awarding the project without a competitive tender process. According to Perera, the approved purchase price for electricity generated by Adani’s wind power stations is $0.0826 per KW, significantly higher than the $0.0488 per KW quoted by WindForce PLC, a company selected through a tender process to build a 50 MW wind power station in Mannar.

Perera claims this decision will cost Sri Lanka millions of dollars over the next 20 years, resulting in a loss exceeding a billion US dollars.

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Sri Lanka debt deal key to restoring debt sustainability, IMF says

Sri Lanka’s agreements with China and other creditor nations to restructure about $10 billion in bilateral debt brought it a step closer towards restoring debt sustainability, the International Monetary Fund (IMF) said on Thursday.

The island nation signed deals with China and other creditor nations to restructure about $10 billion in bilateral debt on Wednesday, helping it approach the end of a restructuring process that began in September 2022 after its reserves hit record lows and forced it to default on foreign debt for the first time.

Sri Lankan officials in Paris inked the agreement with the Official Creditor Committee (OCC) co-chaired by Japan, India and France that have lent a combined $5.8 billion.

The committee is now awaiting details of a separate agreement that was signed with China EXIM Bank to rework $4.2 billion to be shared with them to ensure comparability of treatment, OCC said in a statement.

Sri Lanka, however, still needs to convince bondholders to restructure about $12.5 billion in international bonds.

“We hope that there will be swift progress on reaching agreements with external private creditors in the near future,” Peter Breuer, IMF’s senior mission chief for Sri Lanka, said in a statement.

Bilateral lenders said they hoped an agreement with bondholders would be “on terms at least as favourable as the terms offered by the OCC.”

The restructuring of bilateral debt agreements was one of the key conditions set by the IMF under a $2.9 billion bailout programme that helped Sri Lanka tame inflation, stabilise its currency, and improve government finances.

The central bank estimates the economy will expand 3% in 2024 after contracting 2.3% last year.

Sri Lanka, whose total external debt is $37 billion, also has to finalise arrangements with China Development Bank to restructure debt of $2.2 billion, according to latest finance ministry data.

Under the restructuring plan, Sri Lanka can delay repaying bilateral creditors till 2028. During this period, the government and creditors can arrange new loans out to 2043.

Once the restructuring is completed, Sri Lanka aims to reduce its debt by $16.9 billion, the government said.

It will seek approval from parliament on July 2 to proceed with the deals, President Ranil Wickremesinghe said during an address to the nation late on Wednesday.

The debt restructuring will help the cash-strapped nation more than halve its foreign debt repayments to 4.5% of gross domestic product between 2027-2032, from 9.2% in 2022 at the peak of the economic crisis.

But the country has to still improve governance and stay on the path of reforms, including implementing legislation to lock in IMF-stipulated fiscal targets, impose a property tax, and limit lending by state banks to loss making state-run companies, according to analysts.

Recovery could also face headwinds from upcoming presidential elections scheduled to be held before mid-October.

“There is now the chance Sri Lanka can access undisbursed loans from bilateral lenders, particularly for infrastructure projects that were stalled, or get new loans,” said Thilina Panduwawala, head of research at Frontier Research.

“But it could be next year by the time they get these up and running because elections can also delay that process.”

Source: Reuters

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Sri Lanka’s Debt Deal: OCC Urges Swift Private Creditor Agreement

The Official Creditor Committe (OCC) for Sri Lanka has announced that it expects Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC.

These engagements will ensure that the overall debt treatment granted to Sri Lanka is consistent with the IMF program parameters, it added in a statement.

The OCC statement was issued late on Wednesday (26), following the Sri Lankan government’s announcement that a Memorandum Of Understanding was inked in Paris, France between Sri Lankan authorities, and the OCC, co-chaired by France, Japan and India.

“Since the Official Creditor Committee (OCC) and Sri Lanka agreed on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF on November 23, 2023, the OCC and Sri Lanka furthered discussions in order to finalize the agreement in a Memorandum of Understanding (MoU). The OCC also continued to engage extensively with the Sri Lankan authorities, the IMF and the World Bank, as well as China and Sri Lanka’s private creditors in order to ensure comparability of treatment,” it added in a statement.

On June 26, 2024, the OCC and Sri Lanka finalized the MoU, based on the main parameters of the debt treatment agreed in November 2023. The progress on the MoU had enabled the IMF staff to present to the IMF Executive Board the second review of Sri Lanka’s EFF arrangement and thus open the way for approval of the third disbursement under the arrangement.

The OCC commends the Sri Lankan authorities for their continuous efforts in implementing the reforms necessary for their country’s return to a sustainable path.

The OCC now looks forward to receiving from Sri Lanka all information necessary for the OCC to ensure comparability of treatment. The OCC also expects that the Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC.

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US urges Sri Lanka to continue fiscal reforms with transparent and sustainable changes

US Ambassador to Sri Lanka Julie Chung says the United States welcomes the news of a final agreement on debt restructuring between Sri Lanka and creditor nations, which was reached today on the sidelines of the Paris Forum 2024.

“This is a positive step forward in Sri Lanka’s economic recovery and resilience, helping build more confidence in Sri Lanka’s fiscal environment”, the US envoy said in a post on ‘X’ (formerly Twitter).

Meanwhile, she added that the US encourages Sri Lanka to continue the reform process, adopting transparent and sustainable changes that foster long-term prosperity and growth.

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Sri Lanka reaches deal on debt treatment with China’s Exim Bank

State Minister of Finance Shehan Semasinghe says that he met the Chinese Vice Minister of Finance, Liao Min in Paris and the final agreement has been reached on debt treatment between Sri Lanka and Export Import Bank of China.

Posting on ‘X’ (formerly Twitter), Semasinghe stated that the formalities for signing of the implementing agreements are under way.

Meanwhile, earlier today, Sri Lanka had also reached a final restructuring agreement for USD 5.8 billion of debt with its bilateral lenders’ Official Creditor Committee in Paris, France.

This agreement grants significant debt relief, allowing Sri Lanka to allocate funds to essential public services and secure concessional financing for its development needs, according to the President’s Media Division (PMD).

Sri Lanka’s finance ministry said in November that the debt restructuring agreement in principle covered approximately $5.9 billion of outstanding public debt and involved a mix of extending the maturity of long-term borrowings and reducing interest rates on the credit.

The majority of the debt is owed to Japan and India, which chair the OCC along with France. A provisional agreement with the OCC was reached in November.

The Official Creditor Committee (OCC), led by Japan, France and India, covers about $5.9 billion of Sri Lanka’s outstanding external debt of $37 billion, according to the country’s finance ministry. The Export-Import Bank of China (EXIM) covers about $4 billion of outstanding debt, latest government data showed.

Among bilateral creditors, Sri Lanka owed China $4.7 billion with debt to India standing at $1.74 billion. Japan, a part of the Paris Club group, was owed $2.68 billion. China, Sri Lanka’s largest bilateral lender, is not an official member of the OCC.

Meanwhile, the total value of debt restructuring agreements that Sri Lanka reached today with creditor nations, including Official Creditor Committee and with EXIM bank of China is USD 10 billion.

They will provide up to 92% relief on debt repayments during International Monetary Fund (IMF) Extended Fund Facility (EFF) program.

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India eyeing cobalt in disputed waters with Sri Lanka – AsiaNews

New Delhi has applied to explore a deposit near the Afanasy Nikitin seamount that might be within Sri Lanka’s jurisdiction. According to experts, India’s desire is first and foremost to discourage further Chinese presence in the region.

India is trying to secure exploration rights for a cobalt offshore deposit that could fall under Sri Lanka’s jurisdiction.

New Delhi is driven by competition with Beijing, but Colombo also wants to extract minerals that are crucial for modern technologies, including for the energy transition.

Cobalt is in fact used in batteries in laptops, smartphones, and electric vehicles, but also in jet engines and gas turbines.

Concerned about China’s presence in the region, India contacted the International Seabed Authority (ISA), which is based in Kingston, Jamaica, to seek approval for exploration in the cobalt-rich Afanasy Nikitin seamount, located in the central Indian Ocean, east of the Maldives, about 1,350 kilometres off the Indian coast. The ISA is an intergovernmental body established under the 1982 UN Convention on the Law of the Sea (UNCLOS).

Usually, a country’s sovereignty extends up to 200 nautical miles (370 kilometres) from its shoreline, an area that is called the Exclusive Economic Zone (EEZ), and that only that country can economically exploit, although ships from other countries can pass through it unimpeded.

In 2009, Sri Lanka sought to expand its control beyond 200 nautical miles by applying to the Commission on Continental Shelf Limits (CLCS), which has not yet responded to Sri Lanka’s request.

If accepted, the Afanasy Nikitin Seamount would fall within Sri Lanka’s nautical boundaries. The underwater structure consists of 150 blocks spread over 3,000 square kilometres.

In the past, the CLCS accepted several requests to expand the boundaries of the continental shelf, by countries such as Australia, Norway, and Pakistan, which have rights to maritime territories that stretch beyond 200 nautical miles from the shoreline.

“India’s move is not aimed at exploration immediately; instead, it is a desire to establish a foothold in the region to deter any Chinese presence,” said senior maritime law experts Navin Seneviratne and Mahesh Algama, speaking to AsiaNews.

“At present, China, Germany, and South Korea have contracts for deep-sea exploration in different parts of the Indian Ocean.” By contrast, “India’s deep-sea mining initiatives are at a nascent stage, although, in recent years, the country has demonstrated its ambition in this endeavor.”

The two experts explain that “In 2021, India launched a deep ocean mission with an allocation of 0 million for a five-year period to explore deep sea resources. In the application, India expressed its intention to carry out detailed studies on geophysics, geology, oceanography, biology, and environment of the proposed area over the next 15 years.”

To this end, “In 2023, the Indian government under the same initiative began to develop a crewed deep sea mining submersible.” The latter would “be used to explore and collect polymetallic nodules (pictured), known as manganese nodules, which are rock formations containing important minerals, such as cobalt”.

According to data by the International Renewable Energy Agency (IRENA), China currently controls 70 per cent of the world’s cobalt and 60 percent of its lithium and manganese, as well as other critical minerals.

India has set 2070 as the deadline to reach net zero emissions. Such minerals would be used primarily in the clean energy industry.

Sri Lanka Mannar 50MW wind plant lowest bid 4.88 US cents

Sri Lanka’s state-run Ceylon Electricity Board has received a bid for 4.88 cents a kilowatt hour for a 50 MegaWatt wind power plant in Mannar from Windforce Plc, industry sources said.

Vidullanka, Universal Energy and Square Mech, has made a bid for 4.98 US cents a unit.

Lakdhanavi Limited had made a b id for 5.90 cents.

The 4.88 cents works out to around 14.80 rupees a unit at 305 rupees a US dollar.

Mannar has high winds giving high plant factor in excess 40 percent, based on the performance of CEB’s existing plant.

The bids were opened on June 26, in the presence of representatives of power companies.

The opening of the bids was originally scheduled for May.

However, the opening of the bids was delayed amid objections from the Sri Lanka Sustainable Energy Authority, opposition legislator Kabir Hashim said in parliament.

SLPP approves executive committee decisions

The presidential candidate either to be named or supported by the Sri Lanka Podujana Peramuna (SLPP) should definitely work on the lines of ‘Mahinda Chinthana’ policies, decided its Samastha Lanka Karaka Sabha at a meeting yesterday (24).

Also, that candidate should not be one who endorses a division of the country.

SLPP general secretary Sagara Kariyawasam has told lankadeepa.lk that the decisions taken at the executive committee were approved on the occasion.

No conclusion was made on the matter of a presidential candidate, he said.

Many party politicians attended the meeting at leader Mahinda Rajapaksa’s official residence at Wijerama Mawatha, Colombo.

Meanwhile, Rajapaksa told journalists after a meeting at the party headquarters that whether they should support incumbent Ranil Wickremesinghe or not will be decided in due course.

The SLPP has more than enough of candidates to field if necessary, he added.

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