Sri Lanka in talks with China for US$2.5 billion credit support: Chinese official

China is considering offering a US$1.5 billion credit facility to Sri Lanka and a decision is expected soon, a top Chinese official said on Monday (Mar 21), as part of efforts to help the island nation amid its worst economic crisis in decades.

Chinese ambassador to Sri Lanka Qi Zhenhong told reporters the two sides were also discussing a separate loan of up to US$1 billion which the Sri Lankan government had requested.

He added that the South Asian nation was offered a loan of US$500 million from the China Development Bank on Mar 18.

Sri Lanka has to repay about US$4 billion worth of debt this year, including a US$1 billion international sovereign bond maturing in July. But its reserves dipped to US$2.31 billion as of end February, down around 70 per cent from two years ago.

The country is also struggling to make payments for imports of essentials such as fuel and medicines and enforcing nationwide power cuts due to a lack of fuel for power generation.

“We believe our ultimate goal is to solve the problem but there may be different ways to do so,” Qi said in response to questions on possible restructuring of the Chinese loans.

China is Sri Lanka’s fourth biggest lender, behind international financial markets, the Asian Development Bank and Japan.

Over the last decade, China has lent Sri Lanka more than US$5 billion for the construction of highways, ports, an airport and a coal power plant. But critics say the funds were used for white elephant projects with low returns, which China has denied.

President Gotabaya Rajapaksa asked China to help restructure debt repayments when he met Chinese Foreign Minister Wang Yi in January, but China is yet to respond to the request.

Repayments to China are estimated at about US$400 to US$500 million, a finance ministry source told Reuters.

Rajapaksa said last week Sri Lanka will work with the International Monetary Fund to help solve the country’s economic crisis with official talks to begin in mid-April.

Before the pandemic, China was Sri Lanka’s main source of tourists and the island imports more goods from China than from any other country.

Sri Lanka is a key part of China’s Belt and Road Initiative, a long-term plan to fund and build infrastructure linking China to the rest of the world, but which others including the United States have labelled a “debt trap” for smaller nations.

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How much Sri Lanka Owes vs Has – TRT World

ri Lanka’s economic crisis has plunged the island into darkness due to 7-hour-power cuts as long queues form for basic necessities and anger against the government grows.

The IMF says it will discuss a bailout and India opened a $1B credit line to ease shortages as Sri Lanka struggles to afford crucial imports like gas, food and medicine amid mounting foreign debt.

Sri Lanka’s economic woes stem from a mix of debatable government policies, low tourism revenue triggered by the pandemic and Russia’s attack on Ukraine driving up fuel prices and threatening cash influx from key Ukrainian and Russian tourism markets.

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Tamil Progressive Alliance also boycotts All Party Conference

The Tamil Progressive Alliance has decided to boycott the All Party Conference scheduled to be held on Wednesday under the patronage of the President.

Leader of the Alliance Parliamentarian Mano Ganesan said the party decided to boycott the conference after careful consideration of the invitation.

MP Ganesan said the conference can be termed as an effort to lay blame on the opposition for the government’s shortcomings, and as an effort to appease the Sri Lanka Freedom Party.

Meanwhile, the Samagi Jana Balawegaya also decided against attending the All Party Conference.

Leader of the National People’s Power Anura Kumara Dissanayake at a media briefing yesterday said the party will also boycott the conference.

However, the Tamil National Alliance decided to attend the summit.

Meanwhile, Former Prime Minister Ranil Wickremesinghe is expected to represent the United National Party at the conference.

Parliamentarians Wimal Weerawansa and Udaya Gammanpila and Minister Vasudeva Nanayakkara who represent parties affiliated to the government will also not be attending the conference.

Parliamentarian Udaya Gammanpila said they will instead field two representatives to represent the 11 affiliate parties of the government.

CWC withdraws from talks with GR on economic crisis

The Ceylon Workers Congress (CWC) has decided to withdraw from talks with President Gotabaya Rajapaksa to discuss the economic crisis in the country.

CWC sources told Colombo Gazette that the CWC leadership led by State Minister Jeevan Thondaman has informed the Presidential Secretariat it will not attend the All-Party talks on Wednesday.

The opposition Samagi Jana Balawegaya (SJB) has also decided to boycott the All-Party Conference on Wednesday.

SJB leader Sajith Premadasa and other party leaders in the alliance will not attend the conference at the Presidential Secretariat.

The National People’s Power led by Anura Kumara Dissanayake has also decided to boycott the conference.

President Gotabaya Rajapaksa is to chair the conference to discuss proposals put forward by the Sri Lanka Freedom Party to resolve the crisis.

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JVP to boycott All-Party Conference

The Janatha Vimukthi Peramuna (JVP) would not participate at the All- Party Conference (APC) convened by the President, as it was not meant to resolve the economic crisis but to resolve the political crisis within the government, JVP leader Anura Kumara Dissanayake said today.

He told a news conference that the APC was convened as a result of the discussion held between the President and the Sri Lanka Freedom Party (SLFP) to iron out political differences within the government following the removal of two prominent Ministers.

He said the proposal of convening the all party conference itself was wrong.

Mr. Dissanayake said similar APC was convened by the President during the Covid pandemic and added that however, the government did not pay heed to the proposals of the Party leaders, but continued its own agenda.

He also said the government has not revealed the depth and width of the economic crisis despite repeated requests.

“The government is yet to present in Parliament the report issued by the International Monetary Fund (IMF) on Sri Lanka,” he said.

The JVP leader also said the government has convened the APC after the economic crisis had aggravated and pointed out that they had requested a joint proposal to the crisis situation one-and-a-half years ago.

He said considering the above matters, they have decided to boycott the conference.

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SJB decides not to attend All-Party Conference

Samagi Jana Balawegaya (SJB) has decided to boycott the all party conference (APC) called by President Gotabaya Rajapaksa, SJB National Organizer Tissa Attanayake told Daily Mirror today.

“SJB parliamentary group decided to boycott the APC as we feel it is only a media gimmick which will not bring any fruitful result,” he said.

“This government has been a failure and we don’t expect it to come up with anything useful through the APC,” he added.

Attanayake said SJB leader and Leader of Opposition Sajith Premadasa will make a statement in Parliament tomorrow with regard to the decision made by the party to boycott the APC.

SJB is the second opposition party to boycott the APC as Jathika Jana Balawegaya has also decided to boycott it earlier.

Tea exports to Ukraine comes to a halt

The Sri Lanka Tea Board says that the export of tea to Ukraine has come to a complete halt.

Its Director General, Anura Siriwardena stated that the country will not be able to export tea again until the Ukraine-Russia crisis comes to an end.

The amount of tea exported to Ukraine annually is about 4 million kilograms.

He noted that tea exports to Russia have also declined slightly due to the current situation.

Accordingly, alternative ways of exporting tea to Russia are being studied, Siriwardena added.

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Second death in Sri Lanka fuel queue in 24 hours: police

A second senior citizen died Sunday (20) morning while waiting in line for fuel in cash-strapped Sri Lanka, police said, barely 24 hours after the death of a 71-year-old man under similar circumstances.

According to police spokesman SSP Nihal Thalduwa, the victim, a 70-year-old resident of Makola, Gamapaha, had collapsed while standing in a queue at a filling station in Kadawatha.

Thalduwa said the man, a threewheeler driver by profession, had only been standing in the queue for 15 minutes and had had a history of high blood sugar and medication for cardiac issues.

Sri Lanka is facing a fuel crisis after forex shortages were caused by money printed to keep interest rates low in a bid to build a ‘production economy.’

Sri Lanka: Three Years After Easter Attacks, Politicians Run For Cover – OpEd

With the mastermind still at large, the motive not established and high-profile government officials going scot-free, Sri Lanka’s Easter bombing has reached a cul de sac after three years of investigations.

With the 2019 probe into the terrorist atrocity dragging its feet, the less influential Christian community has been let down by the Gotabaya Rajapaksa government, which came to power in the same year promising to bring the perpetrators to book.

The 279 people who died in attacks on three churches and three hotels included worshippers in two Catholic churches and a Protestant church attending Easter Sunday services. No wonder the Catholic Church views the current regime with suspicion as the probe enters a third year.

From day one, it was clear that the government had its hands tied as Rajapaksa’s immediate predecessor Maithripala Sirisena and the then prime minister Ranil Wickremesinghe were among top government figures blamed for their inaction despite repeated intelligence warnings about the bombings on April 21, 2019, that left more than 500 wounded.

A group of nine suicide bombers affiliated to local Islamist group National Thowheed Jamath (NTJ) were involved in the attacks. Two days after the atrocity, Islamic State claimed responsibility. Those who perished included 45 foreigners who were having breakfast.

A kind of official version is that both the then president and the prime minister were at loggerheads at the time of the incident, which prevented the executive from restoring its well-oiled war infrastructure that had proved so efficient in suppressing the Liberation Tigers of Tamil Eelam’s (LTTE) claim for a separate homeland.

Including the former president and the prime minister, who hail from influential families, under the gambit of the investigation left enough room for political maneuvering and the blame game. Since its independence in 1948, Sri Lanka has been ruled by powerful elite families who have a habit of burying the hatchet to pursue common interests.

In fact, passing the buck is what exactly happened during the probe. Hemasiri Fernando, then secretary to the Defense Ministry, and the then inspector-general of police Pujith Jayasundara, who were arrested in 2019 and held in custody for four months before securing bail, testified to a parliamentary inquiry that Sirisena failed to follow established protocols in assessing security threats ahead of the deadly bombings.

They found Sirisena an easy target, passed the buck and saved their skin. The duo told the commission that the ex-president as minister of defense and law and order simply did not take the threats seriously. Both Jayasundara and Fernando were absolved of all 855 charges including negligence and murder.

With them becoming free birds, efforts to unearth the role of the government and the executive in abetting the bombing or their failure to prevent it have come to naught.

The government’s failure was simply blamed on the political infighting leading to a communication breakdown between the president and the prime minister.

Unlike in other South Asian nations, Islam in Sri Lanka is known for its tolerance and secularism. Though it was a fact that many anti-Muslim attacks had taken place before the Easter bombings, they were not large in scope for the community to take revenge. In fact, most of the atrocities were carried out by the majority Sinhalese community, not by Christians and foreigners.

Unlike the jihadist networks in Pakistan and Bangladesh, Sri Lankan terror outfits are less exposed to the outside world. This leaves them with less experience, wherewithal and resources to execute a major operation such as meticulously exploding bombs at six places around the same time in a well-coordinated attack.By linking a few suspects, who were rounded up in the initial stages of the probe, with the international terror network of Islamic State, the rationale for the bombings was imported from abroad and the purpose was lost.

During the height of the civil war, LTTE never attacked tourists and foreigners, and the country’s status as a tourist-friendly nation was never dented. What message were the killers trying to send while targeting wealthy foreigners and mixing their blood with local conflict dynamics? Does it make sense? Why should Christians, who are known as a peace-loving community in the Buddhist-majority nation, be targeted? Was the bombing staged for an international audience by a few perpetrators with international connections?

Initially, the Sri Lankan Church and its leader Cardinal Malcolm Ranjith of Colombo had placed all their hopes on the Rajapaksa government’s election strategy to zero in on all the culprits and architects of the atrocity.

Sri Lanka rejects invitation to co-sponsor consensus resolution

Sri Lanka has rejected an invitation to co-sponsor another consensus resolution at the UN Human Rights Council, Foreign Secretary Admiral Jayanath Colombage said.

The Foreign Secretary told the media at the President’s Media Centre last week that they were approached by Germany, a member of the Core-Group, to get the consent of the Government to agree on a consensus resolution to be moved at the UNHRC in September this year.

The Government has rejected the offer, citing that such endeavours would fail without the blessings of the people.

“The former Government supported a consensus resolution in 2015 and was rejected by the people at the next election. We would be committing the same mistake if we endorse a similar move,” he said. The Government has conveyed this to the Core-Group. Resolution 46/1 of March 23, 2021 which mandated an evidence gathering mechanism permitting Human Rights High Commissioner Michelle Bachelet to collect evidence on past human rights violations in Sri Lanka, will expire at the 51st session of the UNHRC in September. A new resolution is expected to be tabled by the Core-group replacing the current resolution, if the period of implementation of the 46/1 is not extended by the HRC.

The Council approved a whopping US $ 2.8 million budget for this mechanism. However, a limited portion of it has been released so far while the Government protested that the huge fund for the salaries and other expenses of this mechanism showed the undue emphasis this case has been given when matters of a more serious nature were happening around the world.

Bachelet is required to submit a comprehensive report that includes ‘further options to advance accountability’ in Sri Lanka at the September session.

“We need to end this unfair process. We were a victim of terrorism not a perpetrator,” Foreign Secretary Colombage said. The Sri Lankan delegation to Geneva held a meeting with the President of the UNHRC, Argentina’s Envoy to the UN in Geneva Federico Villegas, to brief him of the progress Sri Lanka had made so far and the disproportionality with which the country’s case has been handled by the Council.

“The meeting was highly productive and encouraging,” Foreign Secretary Colombage said.

The delegation included Foreign Minister Prof. G.L. Peiris, Justice Minister Ali Sabri, State Minister Dr. Channa Jayasumana, the Foreign Secretary and Additional Solicitor General Nerin Pulle.

Argentina’s Envoy had agreed to discuss a future course of action to end this incessant process.

“We are in discussion with member states and the Core group to stop any new detrimental resolutions at the Human Rights Council,” Colombage said, adding that they are hopeful that many member states will support Sri Lanka’s case. Of the 45 member countries which spoke at the recent interactive session, 31 spoke in favour of Sri Lanka highlighting the progress it has made in fulfilling international obligations. The countries which are usually critical of Sri Lanka, had also acknowledged the progress the country had made on the ground, despite challenges posed by the Covid-19 pandemic.

He said the Government has embarked on a roadmap to prepare for the crucial 51st HRC session. This roadmap will have clear timelines to fulfill certain commitments before September.