Japan bins garbage-truck deal with Jaffna MC, seeks refund

The Japanese embassy has requested the Jaffna Municipal Council (JMC) to refund the money spent for the import of four reconditioned waste-collection trucks after the project was delayed for more than three years.

The embassy has written to the council to refund Rs 14.3 million (USD 83,432) which was given for the import of the four trucks.

“It is greatly regrettable that the project has already been three years late over the schedule and you were unable to implement the project,” the embassy informed Mayor V. Manivannan on the cancellation of the project.

The embassy requested the JMC to refund the total amount of Rs 14,329,446 which was given to buy the four vehicles and cover expenses related to unloading, import, customs clearance and domestic transport.

In April 2019, the Society for Promotion of Japanese Diplomacy (SPJD), a non-profit arm of the Japan’s Foreign Affairs Ministry, entered into a “Recycled Equipment Acquisition Project’ agreement with the JMC to provide the four trucks donated by local councils in Japan.

In the partner agreement, it was agreed to transport vehicles to Hambantota after necessary reconditioning and inspection in addition to providing training for local staff on effective usage and self-maintenance of the vehicles.

It was agreed that the JMC would obtain necessary permits and approvals in advance to import the used vehicles. A JMC senior official said one of the main reasons for terminating this project was the delay to get necessary approval from the Finance Ministry.

Former Mayor Emmanuel Arnold who signed the agreement in 2019 alleged that the JMC’s current administration had failed to fast-track the project as agreed by both parties and the failure to do so resulted in the eventual termination of the project.

Attempts to reach Mayor Manivannan were not possible since he is on an overseas visit.

The latest JMC project cancellation came in the wake of projects of the Japan International Cooperation Agency (JICA) being suspended after the government declared a debt default in April. Parliament was told recently that some twelve projects were halted until the International Monetary Fund established a roadmap on Sri Lanka’s debt sustainability.

Japan hands over food donation to help Sri Lanka respond to rising food insecurity

The first tranche of food assistance pledged by the Government of Japan earlier this year has been provided through the United Nations World Food Programme (WFP) to Sri Lanka, where more than 6 million people — nearly 30 percent of the population, are facing a worsening food crisis.

H.E. Mizukoshi Hideaki, Ambassador of Japan to Sri Lanka, handed over the donation to Hon. Nalin Fernando, Minister of Trade, Commerce and Food Security, in the presence of Abdur Rahim Siddiqui, WFP Representative and Country Director, during a ceremony held at the Ministry of Trade, Commerce and Food Security today.

This first tranche forms part of the donation consisting of rice, lentils, and oil, and valued at US$1.5 million, which will be distributed by WFP to approximately 15,000 people in both urban and rural areas and 380,000 schoolchildren.

Ambassador of Japan to Sri Lanka, H.E. Mizukoshi Hideaki said, “It is our great honour that we are able to handover the first tranche of essential food supplies today with the rapid procurement of WFP, which will be delivered to vulnerable families and children across the island who are facing extreme hardship, amidst prevailing food shortages and soaring food prices during this unprecedented economic crisis. We sincerely hope that this humanitarian assistance will provide relief to all the people in need and help them meet their daily nutritional requirement.”

“I thank the people of Japan for this timely contribution. The Japanese Government was one of the first to pledge support to WFP’s appeal. The donation will go a long way in addressing Sri Lanka’s growing food insecurity while shortages of food and other essentials and skyrocketing prices continue to impact millions of people’s ability to maintain an adequate and nutritious diet,” said WFP’s Siddiqui.

A recent survey by WFP and FAO indicates that many of the households — over 60 percent — are resorting to coping mechanisms, such as reducing portion sizes and eating less nutritious food, which could aggravate the already-high malnutrition rates among women and children.

In response, WFP is mobilizing funds and support to provide emergency assistance to 3.4 million people, including 1.4 million people who are in dire need of emergency food assistance, through food, cash or voucher assistance as well one million schoolchildren and one million pregnant and breastfeeding women by supporting the existing national social safety net programmes.

Photo caption: The first tranche of food assistance pledged by the Government of Japan was handed over by H. E. Mizukoshi Hideaki, Ambassador of Japan to Sri Lanka, to Hon. Nalin Fernando, Minister of Trade, Commerce and Food Security, in the presence of Abdur Rahim Siddiqui, WFP Sri Lanka Representative and Country Director.

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SL envoy woos Chinese investment in solar, wind energy

Sri Lankan Ambassador to China Dr. Palitha Kohona said Sri Lanka is an ideal spot for solar energy development and also wind energy development and China can be a big help as we transition to clean energy.

“We would be able to address a huge part of our energy crisis by relying on renewable energy,” he said, according to the Chinese media.

The 2022 World Conference on Clean Energy Equipment is underway in Southwest China’s Sichuan Province.

More than 18 hundred guests from 17 countries and regions are taking part in the event to discuss the development and future of the clean energy equipment industry, according to CGTN.

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Police seek public aid to identify suspects who forcibly entered Presidential Secretariat

The Police have sought public assistance in identifying individuals who forcibly entered the Presidential Secretariat and caused damages to property and equipment on the 9th of July.

Issuing a statement, the Police said an investigation was launched by the Colombo North Crimes Division to arrest individuals involved.

The Police accordingly has sought public assistance to confirm the identity of the individuals identified through video footage and pictures gathered during investigations.

The Criminal Investigation Department has released images of 72 persons and urged the public to provide any information pertaining to the individuals.

The statement requested the public to direct information via telephone or through WhatsApp.

Accordingly, the public can contact 011-2083049, 075-6371536 or the 1997 hotline to provide information

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Companies from 10 countries keen to sell petroleum products in Sri Lanka

24 companies from 10 countries have expressed their interest in engaging in the energy sector in Sri Lanka.

Minister of Power and Energy Kanchana Wijesekera said companies from India, China, the United States, the United Kingdom, Russia, Saudi Arabia, the United Arab Emirates, Malaysia, Norway and the Philippines have submitted proposals to import, distribute and sell petroleum products in Sri Lanka.

The Ministry of Power and Energy recently called for expressions of interest from reputed companies established in petroleum producing countries to import, distribute and sell petroleum products in Sri Lanka on long-term contracts.

Accordingly, Minister Kanchana Wijesekera said 24 companies have submitted proposals in this regard.

He said the Ministry of Power and Energy will now evaluate the proposals and finalise the process in six weeks.

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China dodges request on debt relief, says the ball is in Sri Lanka’s court

China, Colombo’s largest bilateral lender dodged the request for debt relief and said that the ball is in Sri Lanka’s court.

A spokesman for the Chinese embassy said that the ball is in Sri Lanka’s court, not China’s, reported Sei Lankan publication Daily Mirror.

“We sent proposals to the Finance Ministry. But, there was no response from them. Also, Sri Lanka insisted that it should complete the agreement with the International Monetary Fund (IMF) first. The ball is in Sri Lanka’s court,” the spokesman said.

The spokesman told Daily Mirror China communicated to the Sri Lankan Finance Ministry three months ago about its readiness to discuss how to address the debt issue with the Chinese banks.
He said China encouraged its banks to discuss it. The Chinese position was also communicated during the telephone conversation between Chinese Premier Li Keqiang and then Sri Lankan Prime Minister Mahinda Rajapaksa.

Earlier, Sri Lankan President Ranil Wickremesinghe urged China on Thursday to restructure its debt.

“We have informed the Chinese Government of the need to restructure the debt and the need for all the creditors to ‘sing from the same hymn sheet’,” Wickremesinghe told Nikkei Asia in an interview.

The appeal to China has emerged as a formidable challenge to Wickremesinghe, who is leading the country’s financial team as it attempts to rebuild an economy starved of foreign reserves and mired in misery, reported a Sri Lankan publication, The Morning.

Sri Lanka’s total bilateral debt was estimated at USD 6.2 billion at the end of 2020 by the IMF, reported Daily Mirror.

An International Monetary Fund (IMF) statement on the eve of its visit highlighted, albeit obliquely, that the China factor is set to shape Sri Lanka’s economic fortunes.

On the prospects of giving Sri Lanka a multibillion-dollar bailout, the fund said, “Because Sri Lanka’s public debt is assessed as unsustainable, approval by the IMF Executive Board of the Extended Fund Facility programme would require adequate assurances by Sri Lanka’s creditors that debt sustainability will be restored.”

The Washington-based fund’s team will be in Colombo until the end of this month and called on Wickremesinghe on Thursday to discuss the current situation of the economic crisis the nation is grappling with at present, reported The Morning.

During the meeting with President Wickremesinghe, the IMF delegates decided to hold further discussions with Central Bank of Sri Lanka (CBSL) officials on technical issues, the President’s Media Division (PMD) said.

Meanwhile, Japan and China hold the largest shares. India has provided around USD 4 billion to help keep Sri Lanka’s economy afloat, mainly through credit lines and swaps this year. Sri Lanka also has USD 14 billion of international sovereign bond debt.

India emerged as the first responder under Prime Minister Narendra Modi’s Neighbourhood First policy when Sri Lanka was left alone by its so-called benefactors for funding support.
India has responded with urgency to the government of Sri Lanka’s request for assistance in overcoming hardships and will enhance economic linkages between the two countries be it through infrastructure connectivity and renewable energy. (ANI)

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President unable to form All-Party Government

President Ranil Wickremesinghe’s efforts to form an All-Party Government (APG) to ensure a speedy economic recovery have turned futile. The principal reason is the reluctance of the main opposition Samagi Jana Balavegaya (SJB) to become a constituent. This became clear when its leader Sajith Premadasa and General Secretary Ranjith Madduma Bandara met the President for talks on Monday.
Commenting on these talks, General Secretary Madduma Bandara told the Sunday Times, “We discussed a variety of issues. We made clear at the end that we would extend our support but will not accept portfolios in a cabinet of ministers or any other appointments.” It became clear from his remarks that the SJB position on a variety of issues, some perhaps justifiably, was at complete variance with those held by President Wickremesinghe.

One such touchy issue is the ongoing crackdown on those who protested outside Temple Trees and on the Galle Face Green. This has extended to those who unlawfully entered the Janadipathi Mandiraya (President’s House the Temple Trees, the official residence of the Prime Minister, and attacks on properties belonging to Sri Lanka Podujana Peramuna (SLPP) parliamentarians and supporters. The Police campaign has been more vigorous, and suspects have been arraigned even under the provisions of the controversial Prevention of Terrorism Act (PTA). If the Colombo-based western diplomatic community had rapid-fire media statements issued in the past, relatively there was stoic silence. The issue is to figure at the upcoming UN Human Rights Council sessions beginning in Geneva on September 12. Details of talks a high-level UNHRC delegation held with government leaders in Colombo appear in the later paragraphs. The SJB duo raised issue over the mass arrests. In marked contrast, there seems to be little said and done over the SLPP goon squads that carried out attacks on the protestors on May 9. True that the hybrid protests were infiltrated by extremist political groups in the later stages.

The SJB duo also appealed for early parliamentary elections. Of course, for the SJB, there is the concrete belief that it could win an early poll. Not even fears that some stalwarts within the party may break ranks to join the government have deterred the SJB leaders. This is notwithstanding the strong assertion SJB leader, Premadasa displayed about the ”confidence” he has in his members and “the collective decisions they take.” That there is seething discontent within over leadership issues is known. President Wickremesinghe has assured the SLPPers, particularly first-time MPs, he would not go for an early poll. This will ensure they get their pensions. A factor that weighs in his favour is the absence of the right conditions for polls — foremost being the availability of fuel without shortages so a free and fair polls campaign by all sides could take place. Other than that, there is also a much bigger hidden advantage for him – the consolidation of his United National Party (UNP) in the long term.

President Wickremesinghe is not only disappointed that the APG is not a reality but finds himself in a paradoxical situation. As six times Prime Minister in the past, one could argue he had no untrammeled power. Even if he had a power base in the form of MPs, there was a President over him. It is different now. He has untrammeled power in terms of the constitution, but no power base so to say. Other than him, it is only one more MP (Vajira Abeywardena) in Parliament. Therefore, he had to depend on the SLPP albeit the strategic machinations of its theoretician Basil Rajapaksa. That makes clear that the SLPP, now divided into splinter groups, is extending its support selectively.

Nevertheless, President Wickremesinghe did score considerable public approval as fuel queues receded and cooking gas (LPG) stocks were made available to the needy. However, the challenge before him is to ensure its continuity. How would he find the resources?

Recently, those in the Basil Rajapaksa faction, easily the largest, threatened to oppose the budget being presented by President Wickremesinghe as Minister of Finance. They were demanding positions as State Ministers, positions that go with perks and privileges. They are entitled to one private secretary, one media secretary and three coordinating secretaries. All five are entitled to separate vehicles. In addition, State Ministers are also entitled to five office staff members, three vehicles and other perks enjoyed by ministers. Their salaries are also the same as ministers.

President Wickremesinghe, who is formulating the list of State Ministers, is yet to finalise the total number. The appointments are expected to take place before the presentation of his interim budget. In the absence of an APG, the formation of a new cabinet of ministers has become an uneasy task. The present thinking is to go ahead with the existing cabinet of ministers and the inclusion of a few others from other parties. Such inclusion would naturally lead to an estrangement between the government and the parties concerned. On the one hand, any unpopular measures such a government, possibly identified as a “national government,” takes would nevertheless be blamed on the leader, President Wickremesinghe. Such an accusation would have been absent if it were to have been an APG. Electricity rates have been increased with upper limits going up to 75 percent. On Friday, it was announced that water rates would be raised from September 1. The increase in the price of kerosene, after a substantial reduction in the price of a litre of petrol, has come as a death blow for certain sectors. They include poorer sections who use kerosene to cook their meals and fisher folk who use it to fire their outboard motors to go to sea. The increase has contributed to a spiral in fish prices. The interim budget on Tuesday will see the upward revision of taxes. Those will no doubt come as severe blows to middle- and upper-income groups.

Moves to revive SLPP

Although the return to Colombo on September 2 of ex-President Gotabaya Rajapaksa has no direct relevance, there are SLPP sections who are busy with blueprints to revive the party. Their leader, Mahinda Rajapaksa, has been telling visitors who call to see him at his heavily fortified residence that the time would be ripe in two or more months for the SLPP to make a revival. He told visiting confidants that it must come in the form of meetings where the public should be told of the setbacks the party suffered. He was emphatic that these setbacks were due to wrong advice given by some persons and not the fault of the party leadership. For example, he had pointed out that the ban on the import of chemical fertiliser was the result of ‘misleading’ advice by some ‘misguided’ persons. He expressed the view that the farmers should be told the truth and they would appreciate it. Moreover, he had contended, that the SLPP had done the most to farmers.

Returning home after his inability to obtain asylum in any country on Friday, Gotabaya Rajapaksa, his onetime aides say, had no plans to engage in politics. However, after seven years in politics, first as Defence Secretary and then as President, the temptations are far too much. Already, plans are afoot to afford a “grand” welcome though there are questions over security clearance. It is largely security that has prompted the authorities to offer him a residence which is easier to protect than his private one at Mirihana. A government bungalow has been readied for him facing both Malalasekera Mawatha and Bauddhaloka Mawatha. He will become a neighbour of onetime minister Namal Rajapaksa who still occupies a government bungalow. As it always happens, when “well-wishers” underwrite expenses, prolonged stays do cause issues. At least two such underwriters from Colombo are now ignoring calls from Bangkok.

Whether a campaign for revival is possible in a few months remains a serious question. Firstly, the party that came to power with a collection of smaller political groups is now in shambles. Overall, a pro-China National Freedom Front (NFF) led by Wimal Weerawansa and the Pivithuru Hela Urumaya led by Udaya Gammanpila were the main promoters originally of Dullas Alahapperuma as the rival to then Prime Minister Mahinda Rajapaksa. That was to become the first rift in the ruling disposition then. They appear to have discarded him when he failed to win presidential office. Alahapperuma is now in the fold of a group of 12 MPs who want to form a new party. It is led by former Foreign Minister G.L. Peiris.

Alahapperuma had his own tale of woe. He wrote to Prime Minister Dinesh Gunawardena complaining that he had been left out of the Parliamentary Oversight Committees in which he has “worked for many decades.” This included, he said, the Business Committee and the Finance Committee. He said that G.L. Peiris who seconded his name on behalf of the SLPP and Dilan Perera who was the counting agent at the election of the president in Parliament were removed. They were many others too, he said.

Mahinda Rajapaksa, who was earlier a close admirer of Weerawansa, allowing him to speak at rallies before he did because of his oratorial skills, was bitterly critical of him when he spoke to a visitor. He said Weerawansa was the cause of a lot of problems. However, he was all praise for Gammanpila. Tissa Vitharana, the leader of one of the constituent partners of the group, said yesterday, “We had handed over ‘our concept’ for joining an All-Party Government to ex-President, Gotabaya Rajapaksa. We are discussing it with President Wickremesinghe now.” There are seven parties and one organisation in the group. They are the Democratic Left Front, the Lanka Sama Samaja Party, the Communist Party, the Sri Lanka Mahajana Peramuna, the National Freedom Front and the Pivithuru Hela Urumaya. Yuthukama, an orgnisation led by Gevindu Kumaratunga, MP, is also in the group. Other than that, there are two different groups that have broken away from the SLPP. There are six of them: Anura Priyadarshana Yapa, Chandima Weerakkody, John Seneviratne, Priyankara Jayaratne, Jayaratne Herath and Sudarshini Fernandopulle. Anura Priyadarshana Yapa, a onetime minister, said “We are independent and have not aligned with anyone else in Parliament. We did meet President Wickremesinghe for discussions over an APG. We will not join any proposed government. However, we will support the President’s decisions if they are aligned with ours.”

There was a day-long programme for the 12 MPs gathered in Anuradhapura. They were to visit the Sri Maha Bodhi, Ruwan Weli Seya and the Mirisawetiya Viharaya. In the night they addressed a largely attended meeting of lawyers. Ex Foreign Minister Peiris had been at the Habarana Lodge the previous night celebrating the birthday of a family member. Speakers at the meeting pointed out the hardships faced by the people due to the economic crisis and warned that more difficulties were to come. They pointed out that electricity rates have gone up. Water rates were being increased from next week.

They said they were not sure what other demands were in store as a three-member International Monetary Fund (IMF)delegation was holding talks with the government to reach a staff level agreement. They arrived in Colombo on August 24 and will remain till 31. In Washington DC, the IMF said, “The objective is to make progress towards reaching a staff-level agreement on a prospective IMF Extended Fund Facility (EFF) arrangement in the near term. Because Sri Lanka’s public debt is assessed as unsustainable, approval by the IMF Executive Board of the EFF programme would require adequate assurances by Sri Lanka’s creditors that debt sustainability will be restored. IMF staff would also continue the engagement with other stakeholders during the visit. The team will be led by Mr. Peter Breuer and Mr. Masahiro Nozaki.”

IMF negotiations

Though there has been considerable optimism in government circles and even in some quarters of the opposition that the delegation would leave only after the conclusion of a staff level agreement, the IMF announcement is more guarded. It notes that “the objective is to make progress towards reaching a staff-level agreement on a prospective IMF Extended Fund Facility arrangement in the near term,” and makes clear “because Sri Lanka’s public debt is assessed as unsustainable, approval by the IMF Executive Board of the EFF programme would require adequate assurances by Sri Lanka’s creditors that debt sustainability will be restored.” So, a lot depends on Sri Lanka’s creditors.

The topmost among them is China. Others include the Asian Development Bank, Japan, India, and sovereign bond holders. President Wickremesinghe has been preparing for the talks even before the IMF team arrived in Colombo. On August 17, he wrote to India’s Finance Minister Nirmala Sitharaman seeking assistance for debt restructuring. Ahead of that letter, a government source said, the Foreign Ministry had also sent a Third Person Note to the Indian High Commission in Colombo on the same subject. The source said that the quantum of debt from India was not “very substantial” and pointed out that it was in the range of US$ 930 million. Repayment of Lines of Credit, the source pointed out, would come much later. This would include the US$ 55 million under another Letter of Credit. Similar letters, the government source said, have also been written by President Wickremesinghe to other creditors whose credits are also being sought to be restructured.

The same source pointed out that since a large volume lay with China, its response was being awaited. China’s Ambassador Qi Zhenhong, in a article posted in his Embassy’s website (and excerpts tweeted) claimed that “two pieces about China have widely caught the eye of Sri Lanka. One was the visit of US House Speaker Nancy Pelosi to “China’s Taiwan region,” and the other, the visit of Chinese scientific research vessel “Yuan Wang 5.” The strongly worded article said, “Those matters may seem irrelevant and thousands of miles apart, but both sides share the same great significance between China and Sri Lanka, “that is to jointly safeguard each other’s sovereignty, independence and territorial integrity.” It concluded by referring to the 51st UNHRC sessions in Geneva, and asking “Will they (though not mentioned, the hint is on India) help Sri Lanka to ease its human rights crisis by providing concrete support?”

In a separate development, in New Delhi the External Affairs Ministry spokesperson declared on Wednesday that “Safety and wellbeing of Indian nationals during their stay outside including in Sri Lanka is always of prime importance to encourage Indians to exercise all care and caution while in Sri Lanka.” An Indian official in New Delhi when queried, speaking on grounds of anonymity said, “Yes, there were lots of questions from prospective Indian travellers and complaints from Indians travelling to Sri Lanka and facing difficulties. When a query was posed in the media briefing, the MEA Spokesman gave a factual statement to address reasonable concerns. This is based on empirical data.” After the “Yuang Wang 5” visit, India’s High Commissioner in Sri Lanka, Gopal Baglay has already left for New Delhi for consultations.

There was an error in these columns last week. President Wickremesinghe will attend the official funeral of onetime Japanese Prime Minister, Shinzo Abe which takes place on September 27. Abe was shot dead during a campaign speech in the western city of Nara. The funeral will be a nonreligious ceremony to be held at the Nippon Budokan, a venue originally built for the 1964 Tokyo Olympics.

UNHRC delegation’s visit

Now to the visit of a delegation from the UN Human Rights Council, ahead of its 51st sessions in Geneva. Last Tuesday, Foreign Minister Ali Sabry met with the delegation leader, Rory Mungoven and other members for a detailed discussion. The government stance, articulated by Minister Sabry, was not to take a ‘confrontational position’ in the light of the current economic downturn and the resultant political upheaval. Minister Sabry also explained that for reasons of national sovereignty and constitutional restrictions, there were impediments to setting up hybrid courts to address accountability issues. Moreover, he said, there were constraints for the same reasons why the government cannot support separate international mechanisms to collect and preserve evidence against the military and the political leadership.

In what a diplomatic source described as “a most diplomatic way,” Foreign Minister Sabry, suggested that if resolution 46/1 is rolled over, then the government would have no choice but to call for a vote. Mungoven, who is head of the Asia Pacific Division of the UNHRC, took down copious notes as Minister Sabry spoke. Present with the Foreign Minister was Foreign Secretary, Aruni Wijewardene.

Mungoven, in brief remarks, noted that there had been repeated public pronouncements from the government including those at the Human Rights Council that the Prevention of Terrorism Act (PTA) will not be used by law enforcement. They have declared that new laws were to be introduced taking into consideration the concerns expressed by the international community. However, they were now learning that the PTA was now being used to carry out arrests. He also referred to explanatory references by Foreign Minister Sabry to the JVP uprising in the 1970s and 1980s. The Foreign Minister had noted that recent acts of violence had been carried out by extremist breakaway factions.

Mungoven is learnt to have pointed out that it was possible that a roll-over resolution based on 46/1 incorporating recent issues and concerns would be highlighted by the Human Rights High Commissioner’s report. That would be in the form of a new resolution at the 51st sessions of the UNHRC. A new Human Rights High Commissioner is yet to be named to replace Michele Bachelet. The Sunday Times has learned that an initial draft is now circulating among members of the core group.

Mungoven has agreed to share with the Sri Lanka Mission in Geneva the draft report of the High Commissioner at least a day or two before the weekend of September 10, it will be the core group of countries which will share the draft resolution with the government.

Quite clearly, the government cannot brush aside the issues that will come up before the 51st sessions of the UNHRC. The introduction of a new resolution by the United States and the core group is serious, particularly in the light of the recent developments and the use of the PTA despite assurances to the contrary. The European Union has already sounded a warning over the future of the GSP plus tariff concessions. It has also drawn attention to the current dialogue with the IMF, a mechanism that will pave the way for further financial help. A lot is in the hands of the government and how it plays it.

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Protest held in Geneva against state suppression

A protest was held opposite the United Nations Human Rights Commission in Geneva, Switzerland, opposing state supression.

The protestors also demanded for the people to be given the opportunity to choose a leader of their choice by holding an election.

The protestors who staged the protest opposite the Geneva Human Rights Commission emphasized that the Government which does not have the people’s mandate, should leave.

A large number of Sri Lankans residing in Europe joined this protest.

Yuan Wang 5 mapping Indian Ocean after leaving Sri Lanka

(Hindustan Times); After leaving Hambantota Port on August 22, the Chinese satellite and ballistic missile tracking ship Yuan Wang 5 is currently mapping the ocean bed 400 nautical miles (741 kilometers) south-southeast of Dondra Head, the southernmost tip of Sri Lanka.

According to available information, the military ship is expected to head towards its home port Jiangyin near Shanghai as per details provided at Hambantota.

However, it is not clear whether the ship will make another port call while on the way back to China.

Although classified as a Chinese Research Vessel, the ballistic missile tracker ship became a bone of contention with Sri Lankan authorities allowing the ship to berth at Hambantota on August 16 after initially deferring the port call on August 11.

The Hambantota port is on a 99-year lease with the Chinese after Sri Lanka under the Beijing-friendly Rajapaksa regime did a debt-equity swap with the Xi Jinping regime in 2017.

According to China watchers, the berthing of Yuan Wang 5 at Hambantota was a political statement of assertion by the Xi Jinping regime on the weak Ranil Wickremesinghe government after India quietly conveyed its concerns about the military ship.

Japan seeks to organise Sri Lanka creditors’ meeting on debt crisis: Reuters

Japan is seeking to organise a Sri Lanka creditors’ conference in a bid to solve the South Asian nation’s debt crisis, Reuters reported, noting however that uncertainties cloud the outlook for any talks.

Citing sources with knowledge of the planning, Reuters reported on Friday August 27 that Tokyo is open to hosting talks among all the creditor nations aimed at lifting Colombo from its worst debt crisis since independence.

However, it is not clear whether top creditor China would join and a lack of clarity remains about Sri Lanka’s finances, the news agency quoted one source as saying.

Japan would be willing to chair such a meeting with China if that would speed up the process for addressing Sri Lanka’s debt, estimated at 6.2 billion US dollars on a bilateral basis at the end of 2020, the source had said.

President Ranil Wickremesinghe had told the Tokyo-based Nikkei Asia on Thursday August 24 that Sri Lanka would like China to dramatically change its stance on debt relief. The financial news website said Wickremesinghe had conceded that reaching a deal with China will be no simple task.

In an earlier interview given to Reuters, Wickremesinghe had said that Sri Lanka would ask Japan to invite the main creditor nations to talks on restructuring bilateral debts. The agency quoted him as saying he would discuss the issue with Prime Minister Fumio Kishida in Tokyo next month, when he is expected to attend the funeral of the assassinated former premier Shinzo Abe.

Tokyo, Sri Lanka’s number two bilateral creditor, has a stake in rescuing the island nation, not just to recoup its three billion dollars in loans but also its diplomatic interest in checking China’s growing presence in the region, Reuters reported.

Meanwhile, an International Monetary Fund (IMF) team met Wickremesinghe on Wednesday to discuss a bailout, including restructuring 29 billion dollars in debt, as Colombo seeks a three billion dollar IMF aid programme.

The president met the same day with Japan’s ambassador and, according to the source cited by Reuters, Tokyo believes a new “platform” is needed to pull creditors together.

“Sri Lanka is running out of time since it defaulted on its debt. The priority is for creditor nations to agree on an effective scheme,” one source said.

“Japan is keen to move this forward. But it’s not something Japan alone can raise its hand and push through,” said the source, adding that the cooperation of other nations was crucial.

The source had told Reuters that getting Beijing’s cooperation on a debt restructuring was complicated by factors such as a large number of lenders and that China was baulking at taking a “haircut” on its loans and at reducing Colombo’s debt burden.

A Chinese foreign ministry spokesman told Reuters that Beijing was “willing to stand with relevant countries and international financial institutions and continue to play a positive role in helping Sri Lanka respond to its present difficulties, relieve its debt burden and realise sustainable development.”

Japan hopes to see a new debt restructuring framework resembling one set up by the Group of 20 big economies targeting low-income countries, reported Reuters. Sri Lanka does not fall under this “common framework” because it is classified as a middle-income emerging country.

“It must be a platform where all creditor nations participate” to ensure they all shoulder a fair share in waiving debt, another source said. The third said, “Until these conditions are met, it would be difficult for any talks to succeed.”

The common framework, launched by the G20 and the Paris Club of rich creditor nations in 2020, provides debt relief mainly through extension in debt-payment deadlines and reduction in interest payments.

Some people involved think an initial creditors’ meeting could be held in September, but one source said it would “take a little while, possibly several months”.

Restructuring talks are only possible after the IMF scrutinises Sri Lanka’s debt, the sources told the agency.

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