Category: News

The Government on Tuesday (15) reaffirmed its commitment to investigate all past crimes and prosecute those responsible, whilst clarifying the decision to select seven high-profile cases that have been prioritised for expedited review.

Addressing the media at the weekly post-Cabinet meeting briefing, Cabinet Spokesman and Minister Vijitha Herath assured that the Government would not limit its inquiries to these cases alone, but would pursue justice for all reported, yet stalled crimes, including economic offences, murders and disappearances.

The seven cases prioritised include the Central Bank Bond scam, the Easter Sunday terror attacks, the kidnapping and murder of journalist D.P. Sivaram, the disappearance of Lalith Kumar and Kugan Muruganadan, Vice Chancellor Sivasubramaniam Raveendranath, the murder of businessman Dinesh Schaffter and the shooting outside the W15 hotel in Weligama.

In addition, he said investigations into prominent incidents such as the deaths of rugby player Wasim Thajudeen, journalist Lasantha Wickremetunge and the disappearance of cartoonist Pradeep Ekneligoda.

Herath explained that these cases were selected because the investigations are nearly complete or require minimal additional work

“This does not mean that the Government exclude other cases,” he stated, promising investigations into all big and small accumulated cases that got delayed due to various reasons.

He also reassured the public that systematic investigations are already underway into the Easter Sunday attacks and Central Bank Bond scam adding the Government will ensure accountability without safeguarding any individual involved.

The United States Ambassador to Sri Lanka Mrs. Julie Chung met with the Defense Secretary (Retd) Air Vice Marshal Sampath Thuyakontha at the Ministry of Defense in Kotte, Sri Jayawardenepura on October 16.

In this meeting, which was marked by a warm welcome, the two officers engaged in a discussion with the aim of strengthening the bilateral relations between the two countries. Expressing gratitude for the recent donation of a new aircraft to the Sri Lanka Air Force, the Defense Secretary emphasized the importance of continued cooperation.

The meeting concluded with an exchange of souvenirs to commemorate the occasion. Attendees included Air Vice Marshal Padman De Costa, Military Liaison Officer, US Defense Adviser Lt Col Anthony Nelson and US Office of Defense Cooperation Chief CDR Sean Jin.

President Anura Kumara Dissanayake emphasized that enhancing the efficiency of road development projects is crucial for achieving rural economic development goals, the President’s Media Division (PMD) reported.

He highlighted the need to streamline the procurement process for these projects, ensuring that local communities benefit rather than allowing contracts to concentrate in the hands of a few.

The President made these remarks during a progress review meeting for the Ministry of Transport, Highways, Ports, and Civil Aviation held today (16) at the Presidential Secretariat, the PMD said.

The meeting extensively covered various projects under the ministry, with a particular focus on the construction of the Kadawata-Mirigama section of the Central Expressway.

He underscored the importance of developing ports, airports, and highways for the economic growth of the country, asserting that careful planning of these projects could significantly uplift the national economy.

In executing ongoing road development projects, he called for attention to environmental, financial, and community impacts, urging measures to minimize adverse effects and ensure timely implementation, it added.

Additionally, President Dissanayake instructed officials to prioritize the safety of railway employees and the public in the execution of railway line projects.

Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Transport, Highways, Ports, and Civil Aviation K.D.S. Ruwanchandra, along with various officials from affiliated institutions of the ministry, were also present at the meeting.

In a critical response to the Hamilton Reserve Bank’s (HRB) legal opposition, Sri Lanka has reaffirmed its commitment to progressing with its debt restructuring efforts.

The letter, submitted by Clifford Chance US LLP on behalf of the Democratic Socialist Republic of Sri Lanka, responds to and refutes the claims raised by HRB in its 1 October 2024 correspondence to the US District Court for the Southern District of New York.

The HRB, a creditor pursuing claims after Sri Lanka’s sovereign default in 2022, has challenged Sri Lanka’s efforts to secure further stays in the proceedings. The plaintiff HRB has argued that political changes following the recent Presidential election threaten the success of the debt restructuring plan and make it impractical to delay the litigation any longer.

However, Sri Lanka’s legal team insists that despite the change in leadership, the Government remains fully committed to the International Monetary Fund (IMF)-backed economic program and is working diligently to implement the restructuring process.

In its 1 October 2024 letter, HRB expressed concerns that political instability following the surprise election of Anura Kumara Dissanayake as the new President was jeopardising Sri Lanka’s restructuring process. The plaintiff noted that Dissanayake’s victory over former President Ranil Wickremesinghe on 21 September 2024, introduced considerable uncertainty into the political and economic landscape.

As the case Hamilton Reserve Bank Ltd. v. The Democratic Socialist Republic of Sri Lanka awaits Judge Denise L. Cote’s decision, both sides will continue to make their arguments. The outcome could set a significant precedent for future cases involving sovereign debt defaults and the challenges that arise when economic recovery efforts coincide with political instability. If the stay is granted, Sri Lanka will have more time to restructure without legal interference. If denied, the Government will need to balance ongoing litigation with its debt negotiations, complicating its path to recovery.

Further compounding these uncertainties, the newly elected president dissolved Parliament and announced early elections for 14 November 2024 to strengthen his Government, which currently holds only three of the 225 legislative seats. The plaintiff stressed that Dissanayake’s intentions to renegotiate the IMF’s $ 3 billion bailout package and his supporters’ opposition to the existing restructuring framework create significant risks to implementing the debt restructuring plan.

The bank argued that this political shift weakens Sri Lanka’s argument for a further stay in proceedings. According to the plaintiff, the internal political disruptions within Sri Lanka, not external litigation, pose the most significant risk to the restructuring efforts. The bank also warned that creditors should not be forced to wait indefinitely for geopolitical developments, citing Casa Express Corp. v. Bolivarian Republic of Venezuela, a legal precedent that discouraged granting indefinite stays in cases involving sovereign debt.

In its 4 October 2024 response, Sri Lanka rejected the plaintiff’s allegations, arguing that the change in leadership has not derailed the restructuring process. The Government insisted that it remains committed to the IMF-supported program and is actively working toward implementing the agreement in principle reached on 19 September 2024 with international and local bondholders. The Government emphasised that the restructuring efforts align with IMF guidelines and the comparability of treatment principle, which ensures equal treatment for all creditors.

Sri Lanka also reported significant progress since the appointment of the new administration. Following consultations with the Official Creditor Committee (OCC) and IMF staff, both confirmed that the terms of the restructuring agreement comply with the necessary guidelines. The IMF staff further acknowledged that the plan aligns with the Extended Fund Facility (EFF) framework, reinforcing Sri Lanka’s assertion that the economic recovery program is on track.

In preparation for the next restructuring phase, the Government has selected Citigroup Global Markets Inc. as the dealer manager to oversee the bond exchange and related processes. The bond exchange will be central to formalising the debt restructuring, and Citi will work alongside Hogan Lovells, which will provide legal guidance throughout the process. Sri Lanka reiterated that halting litigation remains essential to ensure the smooth execution of these plans.

Sri Lanka’s legal team emphasised that a further stay in proceedings is necessary to allow the Government to focus on launching the formal bond exchange without the distraction of ongoing litigation. The Government argued that the bond exchange is pivotal to concluding the restructuring process successfully and restoring economic stability. Moreover, it warned that the ongoing legal dispute could jeopardise the country’s efforts to meet IMF targets and achieve financial recovery.

However, despite these assurances, the Hamilton Reserve Bank insisted that Sri Lanka’s political shifts and Dissanayake’s public statements to reopen IMF negotiations undermine the stability of the restructuring plan. The plaintiff expressed concerns that even if Dissanayake manages to gain a Parliamentary majority in the upcoming elections, his administration may face new rounds of negotiations with the IMF, bilateral lenders, and private creditors, leading to further delays.

The plaintiff argued that it should not be forced to endure additional delays in the litigation, especially since the political environment in Sri Lanka remains uncertain. While the Government has repeatedly sought stays, the bank warned that these delays must not become indefinite.

The dispute between HRB and Sri Lanka highlights the complex interaction between sovereign debt management and political transitions. Sri Lanka maintains that a stay in proceedings is essential to ensure the success of its restructuring efforts and prevent economic disruption. On the other hand, the plaintiff insists that political uncertainty within Sri Lanka has already compromised the restructuring plan, rendering further delays in litigation unjustifiable.

The Sri Lankan government announcing a default on its debt in April 2022 and what happened in the wake of it, had come as a great shock, disclosed the Ambassador of Japan in Sri Lanka, Mizukoshi Hideaki.

“The day the Sri Lankan government announced a default on its debt in April 2022 and what happened in the wake of it came as a great shock to me, just as it did to everyone else,” Ambassador Hideaki remarked.

He highlighted Japan’s historical partnership with Sri Lanka, especially during times of great challenges, and saw the 2022 economic crisis as an opportunity to showcase this strong bond.

Japan played a pivotal role in the establishment of the Official Creditor Committee (OCC) and the completion of the Memorandum of Understanding (MOU) for debt restructuring, steering creditor countries towards a common goal of aiding Sri Lanka.

However, Ambassador Hideaki noted that debt restructuring was only part of the response.

Witnessing the severe impact on ordinary people, Japan shifted its focus to providing essential aid, including fuel, food, and medicine, to the most affected.

The year 2022 also marked the 70th anniversary of diplomatic relations between Japan and Sri Lanka.

Despite the economic challenges, Ambassador Hideaki said he saw this as a chance to forge a new alliance with the Sri Lankan government, aiming to attract the younger generation and foster national reconciliation.

He stressed that true prosperity for Sri Lanka could only be achieved through national reconciliation and highlighted Japan’s efforts to facilitate this process.

“It has been an ambitious endeavor as to whether the international community can make a meaningful contribution as facilitators for Sri Lankan people’s efforts towards reconciliation. It is an unfinished work and has not borne concrete fruit yet, but I believe a Sri Lanka where everyone lives peacefully and harmoniously would be stronger and more prosperous,” he said.