Colombo allows Pakistani frigate Taimur to dock, Dhaka says no

Sri Lanka has allowed permission to the Chinese built-Pakistani guided missile frigate PNS Taimur to make a port call at Colombo while on its way to join the Pakistan Navy in Karachi. Build by Hudong-Zhonghua shipyard in Shanghai, the warship is on its maiden voyage to Pakistan while exercising en-route with Cambodian and Malaysian navies. The ship is expected to be at Colombo port from August 12-15, 2022.

While Sri Lanka gave permission to the Pakistani guided missile frigate to make a port call at Colombo, it is understood that the ship was denied a permission to make a port call at Chattogram port by the Sheikh Hasina government from August 7-10 after making a port call at Lumut port in Malaysia.

According to diplomatic sources, India’s close ally Bangladesh denied permission to PNS Taimur as August is a month of mourning for Sheikh Hasina as her father, Sheikh Mujib-ur-Rehman also fondly called Bangabandhu, was assassinated by Pak instigated and Jamait-e-Islami inspired radical Islamist forces on August 15, 1975.

The Sheikh Hasina government is close to Narendra Modi government with the Bangladesh Prime Minister clear that her father and family was done to death at the behest of Pakistan. The radical Islamist forces also made an assassination attempt on Sheikh Hasina in 2000 as Prime Minister and in 2004 as the Awami League President.

Prime Minister Sheikh Hasina is scheduled to make a trip to India in the first week of September and along with PM Modi will launch the jointly developed 1320 Mega Watt Maitree Super Thermal Power Project at Rampal in Khulna sub-division.

PNS Taimur, the second of the four Type 054 A/P frigates build in China, was commissioned on June 23, 2022. The lead ship of this class is PMNS Tughril and was commissioned on January 24, 2022. China is also building eight Yuan class -041 diesel attack submarines for Pakistan by 2028 with the objective to militarily flank India on high seas.

(Hindustan Times)

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Ten members of Sri Lanka Commonwealth team in UK missing

en members of crisis-hit Sri Lanka’s Commonwealth Games contingent in Birmingham have disappeared in a suspected attempt to remain in Britain, a top sports official from the island nation told AFP on Sunday.

The nine athletes and a manager vanished after completing their events, the official said, requesting anonymity.

Three of them – judoka Chamila Dilani, her manager Asela de Silva, and wrestler Shanith Chathuranga – had disappeared last week.

That prompted a police complaint by the Sri Lankan officials.

“Since then, another seven have vanished,” the official said, without identifying them.

“We suspect they want to remain in the UK, possibly to get employment.”

The 160-strong Sri Lankan contingent’s management possessed the passports of all members to ensure they returned home.

That failed to deter some from leaving.

British police located the first three that disappeared, but as they had not violated local laws and held visas valid for six months, no action was taken, the Sri Lankan official told AFP.

“In fact, the police got us to return the passports that we were holding as a deterrent against defections,” the official said.

“The police have not told us about their whereabouts.”

Sri Lankan athletes have been reported missing from international events in the past.

In October last year, Sri Lanka’s wrestling manager abandoned his team and disappeared in Oslo during a world championship tournament.

During the 2014 Asian Games in South Korea, two Sri Lankan athletes made a run for it and were not found.

And in 2004, when Sri Lanka did not even have a national handball team, a 23-member group pretending to represent the country conned their way to a tournament in Germany and disappeared. (Courtesy AFP)

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Sri Lanka shares mark longest gaining streak since early January

Sri Lankan shares closed near an 11-week high on Monday, registering their eighth straight session of gains, led by sharp advances in financial stocks.

The CSE All-Share index ended up 1.1% at 8,422.97, clocking its longest gaining streak since early January.

Amid severe fuel shortages, Sri Lanka has given approval to Lanka Indian Oil Corp to open 50 new fuel stations, a company official said.

Sri Lanka, which has faced political upheaval amid its worst financial crisis in more than 70 years, is considering a restructure of local and sovereign debt, President Ranil Wickremesinghe said on Friday.

Conglomerate LOLC Holdings was the biggest boost to the index, surging 17.1% to its highest since early June.

On the CSE All-Share index, trading volume fell to 58.6 million shares from 101.9 million shares in the previous session.

The equity market turnover was 3.33 billion Sri Lankan rupees ($9.24 million), according to exchange data.

Foreign investors were net sellers in the equity market, offloading 155.5 million rupees worth of shares, while domestic investors were net buyers, purchasing 3.24 billion rupees worth of shares, the data showed.

Reuters (Source)

President meets Chinese Ambassador behind closed doors

President Ranil Wickremesinghe and the Ambassador to China Qi Zhenhong met on Saturday (06), sources have confirmed.

The closed-door meeting was held at the request of the Chinese Ambassador.

The meeting took place against a backdrop where the arrival of the Chinese vessel ‘Yuan Wang 5’ at Hambantota Port in located in the Sea of Sri Lanka, has sparked controversy in the region.

Initially, Sri Lankan authorities said that there was no information that such a ship would arrive.

However, a few days later, Cabinet Spokesperson Bandula Gunawardena confirmed that the ship will remain at the Hambantota port from August 11th to 17th for refueling and replenishment.

Sri Lankan authorities also pointed out that it is routine for ships of friendly nations such as India, Australia, Japan and China to visit Sri Lankan ports.

However, amid strong protest from India, the Foreign Ministry has requested for the ship’s arrival to be deferred, according to a release issued by the Ministry.

The Foreign Ministry has requested the Chinese Embassy to defer the arrival of the vessel, “until further consultations” are made between the two Governments.

Moreover, reports indicate that the Chinese Embassy will consult Beijing before responding to Sri Lankan authorities on the deferral.

Source: News 1st

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Fearing political pressure, Sri Lanka president wants to avoid trade integrations with India

Amid fears of a growing cold war between India and China within the country, Sri Lanka President Ranil Wickremesinghe wants to avoid any trade integration with India or any other South Asian nation after some bitter lessons in the past.

When he was in power in the past two decades, he attempted to have greater trade and comprehensive economic partnership with India, However, his attempts met with strong opposition by politically motivated trade unions and center-left political-party led oppositions amid false propaganda.

Since the end of a nearly three-decade war in 2009, Sri Lankan leaders have struggled to balance between India and China.

Beijing’s willingness to invest in Sri Lanka’s infrastructure has been frowned upon by India amid an intensifying cold war with India in Sri Lankan territory as China’s influence in Sri Lanka is seen as a security threat to the Indian Ocean.

Colombo-based political analysts say India is increasingly agitated over rising Chinese presence in the South Asian island nation just a few miles from the World’s second largest democracy.

“Unfortunately, I don’t think you will see trade integration with South Asian region,” Wickremesinghe told an economic forum on Friday.

“There will have to be bilateral agreement with whoever we want. There is too much of politics involved for there to be a regional trade agreement in South Asia,” he said without naming India which has encouraged Colombo for broader economic corporation deals including Comprehensive Economic Partnership Agreement (CEPA) and Economic And Technology Cooperation Agreement (ETCA) in the past.

His efforts to go for such greater economic partnership have brought him political defeat at elections in the past.

“So we can keep that aside. We can have integration in dancing, we can have integration in cooking. but certainly we are not going to have integration as far as the economy is concerned.”

Instead, President Wickremesinghe wants other countries including nations from Association of Southeast Asian Nations (ASEAN) or Regional Comprehensive Economic Partnership (RCEP) as well as the West and Africa.

“We have to look at ASEAN and RCEP. That’s a growing market. It’s a big market and the income levels are much higher. So let’s look at it,” he told an audience including the country’s top corporate leaders.

“Later on you can look at Africa – East Africa specially. We must keep our economic relationship with Europe and UK that is looking for a role as a Global Britain. So I think Sri Lanka can easily get closer and better relationship with UK. Then we get on to the US itself.”

Wickremesinghe’s latest comments come as India has raised security concerns over an arrival of a Chinese military ship to Sri Lanka’s Chinese-controlled Hambantota port.

Since coming to power through a parliament vote, Wickremesinghe is in the process of formulating a new foreign policy to avoid geopolitical issues from both India and China, his close allies have told EconomyNext.

Source: Economy Next

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UN Secretary-General notes importance of Ranil’s leadership

In a letter congratulating Wickremesinghe on assuming duties as the new President, the Secretary-General said that the United Nations is ready to support the Government and people of Sri Lanka in meeting their immediate and long-term needs.

He also said that the leadership of President Ranil Wickremesinghe will be critical in bringing stability and ensuring an environment conducive to ushering Sri Lanka out of the current challenges it is facing.

The UN Secretary-General has acknowledged the President’s commitment to forge a consensus among all political parties in formulating a national strategy to address these challenges.

The letter also encourages dialogue among all stakeholders, including consultation with the public, as well as respect for rule of law and fundamental human rights principles.

“The United Nations is ready to support the government and people of Sri Lanka in meeting their immediate and long-term needs and is looking forward to continuing the cooperation of the United Nations in building peace, sustainable development and promoting human rights for all Sri Lankans,” António Guterres said.

The UN Secretary-General also welcomed Sri Lanka’s efforts to increase women’s participation in politics.

Source: Colombo Gazette

WFP concerned about food crisis in Sri Lanka

The UN World Food Programme (WFP) is concerned about the impact of the ongoing economic crisis in Sri Lanka on food supplies for the country’s poorest.

Nearly 6.3 million people, or three in 10 households, are at risk of food insecurity and need assistance, the WFP said in a statement of thanks for an aid contribution from Norway of the equivalent of about $500,000.

Recent WFP surveys show that 61 per cent of families are either eating less, or eating less nutritious food, or even skipping meals altogether, due to the acute emergency, reports dpa news agency.

An emergency programme is being set up to help 3.4 million people in Sri Lanka who are most at risk of food insecurity and malnutrition, it added.

The island nation, with a population of about 22 million, is in the midst of its worst economic crisis since it gained independence in 1948.

Most recently, the country, which is $51 billion in foreign debt, lacked the money to import essential goods such as fuel, medicines and gas for cooking.

Food prices have risen sharply and inflation is already over 60 per cent, according to official figures.

“We are deeply concerned about the impact of the current economic and political crisis on the people of Sri Lanka,” Norwegian Ambassador Trine Joranli Eskedal was quoted as saying.

Food shortages and rising prices have had a particularly negative impact on women and children in the island nation.

Source: Adaderana

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China’s Exim Bank suspends loan; Central Expressway hits road block

China’s state-owned Exim Bank has put on hold a US$ 51 million loan required for the construction of the first phase of the Central Expressway, throwing the Government into a fresh crisis over the project.

Government sources said that as an immediate result some 2000 jobs held by locals were in jeopardy while some 500 Chinese employed in the project covering a span of 37 km between Kadawatha and Mirigama had started leaving. The release of the funds from the Exim Bank of China has been mainly suspended in view of the current economic crisis in the country and the Sri Lanka Government’s decision to suspend repayment of foreign loans, Treasury sources said.

The suspension of the loan would result in the delay of the project and in turn would draw a penalty on the Sri Lankan government from the contractor, Metallurgical Construction Company (MCC) of China. the sources said.

The construction of the project began in September 2020 with the target to complete it by the end of 2024.

So far some 32 percent of the project has been completed with the Sri Lankan government’s funds which amounts to Rs 33 billion.

The Sunday Times learns that the Road Development Authority (RDA) has taken up the matter with the External Resources Department of the Finance Ministry.

The project in the recent months has also been hit by the lack of diesel and explosives needed to blast the rocks. A daily requirement of 40,000 lts of diesel is needed.

“We would have to wait until the economic situation improves and renegotiate loans to go ahead with the project,” a Finance ministry source said.

Source: The Sunday Times

SLFP to join all-party government?

The Sri Lanka Freedom Party (SLFP) is to make a final decision this week on joining the all-party government proposed by Ranil Wickremesinghe.

A senior SLFP source told The Sunday Morning that a majority of the party’s parliamentary group believed that the SLFP should join the all-party government and lead the initiative.

“There are only one or two MPs who are not yet supportive of joining the government,” the source said.

However, the party’s parliamentary group is to meet with Party Leader Maithripala Sirisena this week to make a final decision on joining the government.

When asked about the outcome in the event the party leadership did not agree with joining the government, the source said: “We will then have to make a decision since a majority of the party MPs believe that the SLFP needs to join the all-party government.”

The SLFP has so far held two rounds of talks with President Wickremesinghe, with the last being held on Thursday (4).

At Thursday’s meeting, Prime Minister Dinesh Gunawardena had asked Sirisena if the SLFP would be joining the government and the SLFP Leader had responded: “You already have five of our MPs.”

“It seems the party leadership is yet undecided on joining the all-party government, but we need to make a decision fast,” the source noted, adding that such a move would also enable disgruntled Sri Lanka Podujana Peramuna (SLPP) members to rejoin the SLFP.

Source: The Sunday Morning

Crisis deepens over Chinese vessel

The Chinese Embassy will consult Beijing before responding to Sri Lanka’s request on Friday that the scheduled docking of the Yuan Wang 5 tracking vessel at the Hambantota Port be postponed, Sri Lanka was told yesterday.

Chinese Ambassador Qi Zhenhong conveyed this to President Ranil Wickremesinghe during a brief meeting held at the diplomat’s request yesterday, authoritative sources said. The docking of the ship has turned into a geopolitical headache for the Sri Lankan Government, with India lodging strong protests on the basis that the “spy vessel” threatens its national security.

Clearance to anchor the vessel was granted by Sri Lanka’s Foreign Affairs Ministry, the Defence Ministry and the Sri Lanka Ports Authority (SLPA) before President Wickremesinghe took over. But Indian news reports claim that New Delhi had not been informed at the time until it sought clarification from Colombo.

The vessel is now in mid-sea near Indonesia, heading directly for Hambantota. It is scheduled to berth in Hambantota from August 11-17. But on Friday, amidst a continued expression of displeasure from India, Sri Lanka’s Foreign Ministry wrote a Third Person Note (TPN) to the Chinese Embassy requesting “that the arrival date of the vessel Yuan Wang 5 in Hambantota be deferred until further consultations are made on this matter”.

Another TPN dated July 12, 2022, had granted approval for the vessel to dock at Hambantota provided that the vessel keeps its automatic identification systems (AIS) transponders switched off within Sri Lanka’s exclusive economic zone; and no scientific research or surveys are conducted in Sri Lanka waters.

AIS transponders are designed to automatically provide position, identification and other information about the ship to other ships and to coastal authorities.

Upon receipt of Friday’s missive, Ambassador Qi requested an urgent meeting with President Wickremesinghe to discuss concerns regarding the vessel.

India’s Foreign Ministry Spokesman Arindam Bagchi recently said, “The Government (of India) carefully monitors any developments having a bearing on India’s security and economic interests, and takes all necessary measures to safeguard them. I think that should be a clear message.”

But behind the scenes, stronger messages have been issued. The Yuan Wang 5 has the capacity to track satellites and intercontinental ballistic missiles and is equipped with a large parabolic tracking antenna and various sensors.

Indian media have expressed fear that it may be able to monitor India’s missile tests from Wheeler Island off the coast of Odisha, thereby gathering information regarding range, etc. India is also currently laying military submarine cables.

Sri Lanka will have to manage the situation at a time when the Government is poised to start debt restructuring talks. India and China are two of the biggest creditors and their cooperation is crucial.

Source: The Sunday Times