Category: News

World Bank calls on Sri Lanka to stay the course on reforms

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As Sri Lanka recovers from a series of unprecedented shocks with devastating impacts, it is crucial to stay the course on sound and timely reforms in order to stabilize the economy, World Bank Managing Director for Operations, Anna Bjerde, said.

Anna Bjerde, who concluded a four-day visit to Sri Lanka, underscored the World Bank’s continuous commitment to investing in people, strengthening human capital, and creating jobs.

Bjerde met with Sri Lanka’s President and Minister of Finance, Ranil Wickremesinghe, cabinet ministers, representatives of opposition parties, civil society, private sector, development partners, and World Bank project beneficiaries, the World Bank said in a release.

She participated in a roundtable hosted by the President with key ministers, private sector representatives, and development partners—including members of the MDB+ platform, which includes Multilateral Development Banks (MDBs) and bilateral development partners. The platform enables member institutions to coordinate their engagement with Sri Lanka. The roundtable focused on Sri Lanka’s progress on structural reforms, mobilizing private capital for development, supporting job creation, human capital development, and regional cooperation.

As Sri Lanka recovers from a series of unprecedented shocks with devastating impacts, it is crucial to stay the course on sound and timely reforms in order to stabilize the economy while fostering economic growth that can attract investment, generate jobs, protect the poorest and most vulnerable, and build resilience to future crises. But equally important is the need to strengthen governance, citizen engagement, and social cohesion, a must for inclusive growth,” said Bjerde.

Her trip included visits to World Bank-supported projects in the Northern and North Central Provinces related to agriculture, health, climate change, private sector development, and financial inclusion for women.

“During my visit, I heard about the challenges Sri Lankans face. Skilled professionals are leaving the country, farmers are struggling to cope with a changing climate, and entrepreneurs are constrained by a lack of investment and access to credit. But I also saw huge opportunities to scale up climate-smart agriculture, harness renewable energy, boost entrepreneurship, promote competitiveness and regional connectivity,” added Bjerde. “The World Bank will continue to support Sri Lanka on its journey to recovery, connecting farmers to markets, strengthening access to healthcare, boosting innovation, pursuing transformation through infrastructure investments, and creating quality jobs for women and youth.”

The World Bank has been a partner to Sri Lanka for more than 70 years, providing financial and knowledge support to the country.

At the onset of the economic crisis in May 2022, the World Bank moved fast to help protect the people of Sri Lanka—particularly the poor and vulnerable—from the worst impacts by repurposing funds from the existing portfolio. In addition, the World Bank was one of the earliest responders to the crisis and initiated a coordination platform with the Asian Development Bank and the Asian Infrastructure Investment Bank to align emergency assistance to help sustain basic services and commodities.

State Bank of India opens branch in Trincomalee; Indian FM hands out passbooks to first customers

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Indian Finance Minister Nirmala Sitharaman opened a branch of the State Bank of India in Trincomalee on Thursday (2) during her official visit to Sri Lanka.

Senthil Thondaman, Governor of Eastern Province, Shri Gopal Baglay, India’s High Commissioner to Sri Lanka, and Chairman of the State Bank of India, Shri Dinesh Khara were also present at the inauguration.

Sitharaman highlighted that SBI, with its 159 years of significant presence, is the oldest bank in Sri Lanka and continues to grow its business at home and abroad.

The Indian Finance Ministry posted on X, formerly known as Twitter, that during the Sri Lankan economic crisis, SBI’s presence in Sri Lanka paved the way for a smooth extension of a line of credit worth $1 billion by the Government of India to Sri Lanka.

SBI Sri Lanka continues to play vital role by supporting corporates in international trade, it added.

SBI in Sri Lanka continues to scale up remittances through a robust Digital Platform via SBI Sri Lanka YONO app and online banking, in addition to the in-branch operations, it further said.

After the inauguration, Minister Sitharaman interacted with the new branch officials and distributed passbooks to new customers, while also adding comments on the visitor’s book in Trincomalee, Sri Lanka.

President holds bilateral talks with Indian Finance Minister, exchange bilateral documents

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President Ranil Wickremesinghe has met with visiting Indian Finance Minister Nirmala Sitharaman and the Indian delegation, a short while ago.

The Head of State met Indian Finance Minister Nirmala Sitharaman, High Commissioner of India to Sri Lanka Gopal Baglay and the Indian delegation for bilateral discussions at the President’s House in Colombo a short while ago, the President’ Media Division (PMD) reported.

During the bilateral meetig with Finance Minister Nirmala Sitharaman, bilateral documents were exchanged to enable the execution of projects under the USD 15 million grant assistance by the Government of India for the promotion of Buddhist ties between India and Sri Lanka.

Accordingly, a Letter of Exchange and Letter of Acceptance to formalize an amendment to the MOU on USD 15 million grant assistance for the promotion of Buddhist ties between India and Sri Lanka was exchanged, along with a Memorandum of Understanding on solar electrification of places of religious worship across Sri Lanka with a grant allocation of USD 10 million.

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N-E issues: Asgiri Chapter urges Govt. impartiality, sensitivity

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The Asgiri Chapter of the Siam Sect said that the Government must be impartial and more sensitive when handling issues in the North and East areas of the country before blaming Buddhist monks for their conduct.

Speaking to The Daily Morning yesterday (1 November), the Secretary of the Supreme Sangha Council of the Asgiri Maha Viharaya Ven. Dr. Medagama Dhammananda Thera said that it seems that the Government and the law enforcement authorities do not listen properly to the voice of the people who have been living in these areas since the three-decade ethnic conflict, and therefore urged the public not to misinterpret the situation by highlighting the conduct of one particular Buddhist monk.

When queried about the conduct and recent statements made by Ven. Ampitiye Sumanarathana Thera who is the chief incumbent of a temple located in the borders of the Trincomalee and Batticaloa Districts, Dhammananda Thera said that his conduct cannot be accepted, yet, some unique issues faced by him (Sumanarathana Thera) and his community have made them so.

“As I was a member of a committee appointed by the previous Government, I personally know the issues faced by him and his people. Some people have no permanent residency in either of these two districts due to these racial issues. I don’t blame this Government, but, almost all governments have neglected these issues. Some look at this issue from another perspective,” he said.

He further stated that since these issues are very complex, the Government should look into these matters very deeply and where its roots are, before making decisions. He said that if they make inquiries partial, it would badly affect the existence of the country’s social fabric.

Recently, the Illankai Tamil Arasu Kadchi (ITAK) submitted a formal letter to the Inspector General of Police, urging action against Sumanarathana Thera. The monk has come under scrutiny for his alleged incendiary remarks that have raised concerns about communal harmony in the country. In a recently circulated video that has sparked outrage, the monk is seen making threats against the Tamil community in the Southern region of Sri Lanka. The ITAK contends that these statements pose a serious threat to communal harmony and have the potential to incite violence and hatred, and therefore demanded his arrest under the International Covenant on Civil and Political Rights Act.

Several attempts made to contact the Police in this regard proved futile.

India to build another 10,000 houses for estate community in Sri Lanka

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The Government of India has announced plans to build another 10,000 houses for estate workers in Sri Lanka, as part of ‘Phase 4’ of the Indian Housing Project.

Delivering the keynote address at ‘Nam 200’ this afternoon (02 Nov.), celebrating 200 years since the arrival of Indian Origin Tamils (IOT) to Sri Lanka, Indian Finance Minister Nirmala Sitharaman revealed that commending the success of ‘Phase 3’ of India’s flagship development project, Indian Prime Minister Narendra Modi has announced that a further 10,000 houses will be built for estate workers in the Northern Province of Sri Lanka.

Commenting on the success of the third phase of the Indian Housing Project, the Finance Minister revealed that 3,700 houses, of the 4,000 houses agreed to be established under the project, have already been handed over to the beneficiaries.

“This will remain a special moment for our bilateral relationship, as well as personally to me”, Minster Sitharaman said in this regard.

Accordingly, the foundation stone for the first lot of the 10,000 houses due to be built under ‘Phase 4’ of the project will be laid today, as part of the ‘Nam 200’ celebrations.

Finance Minister Sitharaman further highlighted India’s continued commitment and unwavering support to uplift the wellbeing of IOTs in Sri Lanka, and said, “India has consistently stood in solidarity with you, offering all the support within our means”.

She further stated that “Enhancing connectivity between India and Sri Lanka will build bridges of experience and opportunities for the people of both countries”.

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State Bank of India opens two new branches in Sri Lanka’s North, East

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State Bank of India (SBI), the largest public bank in India, will open two new branches in Sri Lanka this week, extending the services to the island nation’s Northern Jaffna peninsula and Eastern port district of Trincomalee where India is already dominating.

Indian Finance Minister Nirmala Sitharaman will inaugurate the new branches during her three-day official visit, the Indian government said in a statement.

SBI, the largest bank in India with over 20 percent market share by assets, has been in Sri Lanka for more than 150 years, serving both corporate and retail clients.

India has been expanding its businesses into Sri Lanka’s North and East after the end of a 26-year war in 2009.

India has already built a Cultural Centre in Jaffna, once the de facto capital of separatist Liberation Tigers of Tamil Eelam (LTTE), where predominantly ethnic minority Tamils are living. Tamils are more close to South Indian Tamil Nadu state by culture and language.

India, one of the World’s fastest growing economies, has already got an oil tank farm in the Eastern port district of Trincomalee and is involved in more than a third of fuel business by volume in Sri Lanka.

Trincomalee is also rich in mineral mines.

Currently SBI Sri Lanka is operating through 5 branches namely Fort & FCBU branches at main building in fort, Colpetty branch, Wellawatta branch and Kandy branch.

SBI Sri Lanka has the product range from all types of deposit accounts, financing working capital, term loans, vehicle loans, housing loans and trade finance.

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China will play positive role to help Sri Lanka navigate debt situation

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China says it will continue to support Chinese financial institutions in actively consulting with Sri Lanka.

Foreign Ministry Spokesperson Wang Wenbin speaking at the Regular Press Conference on Tuesday (31) said that China will continue maintaining friendly communication with other creditors and jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development.

He told reporters that, as an official creditor, the Export-Import Bank of China tentatively agreed with Sri Lanka on the debt treatment, and the Sri Lankan side has released relevant information.

On the 11th of October 2023, the Ministry of Finance of Sri Lanka issued the following statement with regard to the agreement reached with the Exim Bank of China:

The Government of the Democratic Socialist Republic of Sri Lanka is pleased to announce that it has reached an agreement on the key principles and indicative terms of a debt treatment with the Export-Import Bank of China (“China Exim bank”).

The agreement in principle covers approximately USD 4.2bn of outstanding debt. It constitutes a key step towards restoring Sri Lanka’s long-term debt sustainability and will pave the way to a prompt economic recovery.

The indicative terms agreed will provide the necessary fiscal space for Sri Lanka to implement its ambitious reform agenda.

The Sri Lankan Government commends the engagement and continuous support of China Exim bank in reaching this agreement in principle, which demonstrates a mutual commitment in line with the goal/objective of restoring public debt sustainability consistent with the IMF-supported program.

The Sri Lankan authorities hope that this landmark achievement will provide an anchor to their ongoing engagement with the Official Creditor Committee and commercial creditors, including the bondholders.

It should also facilitate approval by the IMF Executive Board of the first review of the IMF-supported program in the coming weeks, allowing for the next tranche of IMF financing of about US$334 million to be disbursed.

The Secretary to the Treasury Mr. K M Mahinda Siriwardana issued the following statement:

“Yesterday marked a big step for Sri Lanka as we reach this landmark agreement in principle on debt treatment terms with our largest single creditor. We thank China Exim bank for the support in resolving our country’s debt situation. This agreement constitutes a key milestone in Sri Lanka’s ongoing efforts to foster its economic recovery.”

In the next few weeks, the Sri Lankan authorities and China Exim bank will actively work on formalizing and implementing the agreed parameters of the debt treatment.

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Indian Finance Minister meets Mahanayake Theros, briefs on Solar Power project

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Indian Finance Minister Nirmala Sitharaman called on the Mahanayake Theros in Kandy on Wednesday (1).

Nirmala Sitharaman called on the Mahanayake of the Malwathu Chapter of the Siam Sect, the Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Thero.

During her meeting with the Mahanayake, Nirmala Sitharaman reiterated the strong connect the people of India feel through the Prime Minister of India for the people of Sri Lanka.

The Indian Finance Minister had also noted that on Thursday (2) she will attend the the exchange of the Memorandum of Understanding for Solar Electrification of Religious Places in Sri Lanka wherein India will allocate INR 82.40 crores out of the GOI grant assistance of INR 107.47 crores earmarked for the promotion of Buddhist ties.

According to the Indian Ministry of Finance, the exchage of MoUs will take place in the presence of President Ranil Wickremesinghe.

Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Thero had acknowledged the deep cultural ties with India and the shared Heritage between the two nations.

The Mahanayake Thero also thanked the Indian Finance Minister for the economic assistance given during the time of economic crisis in Sri Lanka and highlighted that as Sri Lanka’s most trusted friend, India was the first to reach out to help Sri Lanka in moment of economic crisis.

The Indian Finance Minister also called on the Mahanayake of the Asgiri Chapter of the Siam Sect, the Most Venerable Warakagoda Sri Gnanarathana in Kandy.

Indian Finance Minister Nirmala Sitharaman discussed the continued tradition of strong historical and cultural ties between India and Sri Lanka.

Most Venerable Warakagoda Sri Gnanarathana Thero had acknowledged the cordial relations between the two countries and expressed gratitude for the support from India during the times of economic hardship in Sri Lanka.

The Indian Finance Minister also elaborated on the Solar Electrification of Religious Places in Sri Lanka project, and the Mahanayake Thero thanked India for the assistance and indicated that it is a timely and supportive step towards their energy needs.

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Parliamentary schedule for 2024 Budget

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The Second Reading of Appropriation Bill (Budget) for the fiscal year 2024 (the Budget Speech) is to be presented to the Parliament by President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, at 12 noon on 13 November.

Thereafter, the Second Reading of the 2024 Budget will be debated for a period of one week, from the 14 to 21 November.

The vote for the Second Reading of the Budget is scheduled to be held at 06:00 p.m. on 21 November, following which the Committee Stage debate will be held for a period of 19 days from 22 November – 13 December.

Accordingly, the vote on the Third Reading of the 2024 Budget is slated to be held at 06:00 p.m. on 13 December.

Accordingly, during the period in which the Budget is slated to be debated, the debate is scheduled to be held from 09:30 a.m. to 06:30 p.m. every day, while the Adjournment debate will be held from 06:00 p.m. to 06:30 p.m. everyday, except on the date of vote.

US visa-denied MP showers praise on China

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Ruling party MP Sarath Weerasekara who was denied a visa to travel to the United States, showered praise on China citing it as an indispensable and dependable friend of Asia.

Addressing the BOAO summit in China recently, he said the western world will never comprehend the bond among the Asian countries.

“It is evolved and nurtured through trade and mainly Buddhism. China has been an indispensable and dependable friend of Asia.
We are grateful to China, a permanent member in the Security Council, for the consistent support it has given to Sri Lanka at the Human Rights Council. When we defeated the most ruthless terrorist organization in the world we were vilified by the western countries, but China always stood by us,” he said.

Recently, Weerasekara was denied travel to the US for a programme meant for the Sri Lankan MPs heading parliamentary sectoral oversight committees. Weerasekara chairs the Committee on National Security.