NPP begin ‘Pannamu’ protest towards Galle Face

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The protest march organised by the National People’s Power under the theme ‘Pannamu’ commenced in Beruwala this morning.

The march has been organised in support of the demonstration at Galle Face demanding the resignation of President Gotabaya Rajapaksa.

The NPP will march from Beruwala to Wadduwa today and from Wadduwa to Moratuwa tomorrow.

The group will continue its protest march from Moratuwa to Galle Face and join the demonstration at the Agitation Site opposite the Presidential Secretariat on Tuesday.

Speaking to media, Leader of the NPP MP Anura Kumara Dissanayake said they are at the forefront of the protests organised against the President and the country.

MP Dissanayake noted that although the country’s assets have depleted and the government is struggling to repay debt, wealth of those ruling the country has not reduced.

He said there are several properties and assets worth millions of rupees in Uganda, Dubai, Malawana, Matara, Los Angeles and Seychelles linked to the country’s rulers.

MP Anura Kumara Dissanayake stressed that the general public is aware that all rulers of the country robbed the country while also protecting those misappropriating public funds.

He said some are living a lavish lifestyle after robbing state assets.

MP Dissanayake claimed now another group is attempting to come to power to rob the country.

He said all properties that are linked to the country’s rulers in Uganda, Malawana, Matara, Los Angeles and Seychelles should be seized.

The NPP leader noted that only a group that is not linked to corruption can protect the country’s assets and seized assets of those who rob the country.

He said therefore they are the only group that is capable of fulfilling the needs of the people.

Leader of the NPP MP Anura Kumara Dissanayake said a country cannot be stable when the government is unable to repay the debt, import fuel, vehicles are queuing up at filling stations and when power plants and refineries are shut.

He said therefore the time is apt to stand against the current rulers.

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Gota Go Village listed on google maps

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Gota Go Village has been listed on google maps, showing the direction for motorists trying to reach the location.

The village has been listed as a bus stop in Colombo and directs motorists to the place where the protest against President Gotabaya Rajapaksa is currently underway.

The village has a 5 star rating and over 550 reviews as of 17th April.

The #GoHomeGota protest was launched opposite the Presidential Secretariat on 9th April.

The protesters began to stay at Galle Face since 9th April with tents and portable toilets also being installed.

The protest was launched over the President’s failure to prevent the economic crisis which has affected Sri Lanka.

He and Prime Minister Mahinda Rajapaksa have also been accused of corruption by the protesters.

The protest was named Occupy Galle Face and the site of the protest was named Gota Go Gama.

Religious leaders have also extended their support to the protest and held religious observances at the site.

The traditional Sinhala and Tamil New Year was also celebrated at the site of the protest.

“Galle GotaGoGama” removed tents are back after lawyers intervene

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The tents which were enacted in Galle, dubbed the ‘GotaGoGama’ Galle branch, have been restored after legal intervention.

A tense situation arose on Sunday (17) morning when Police attempted to remove the temporary structure set up in the Galle Town in support of the Occupy Galle Face Protest in Colombo.

Food and water for protestors was accumulated at the tents which were removed by the Police.

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Occupy Galle Face protest on for 8th-day

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Sri Lankans continue to occupy the Galle Face stretch opposite the President’s Office demanding the immediate resignation of the President, Prime Minister, and the Government.

They have already rejected an offer by the Prime Minister for a sit down and discuss their issues.

A large number of people including artists and master blaster Sanath Jayasuriya joined the ongoing protest at Galle Face, the main beachfront in the capital Colombo, outside Sri Lankan President’s Office for the 8th day.

The Occupy Galle Face protest is continuing in the Galle Face Green area in the capital city of Colombo as the Island nation is facing its worst economic crisis since independence with food and fuel shortages, soaring prices, and power cuts.

Sri Lankans are protesting against the government’s handling of the economic situation, an the protesters have been accusing Rajapaksa’s government of corruption and misrule.

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GotaGoGama branch set-up in Galle

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The Occupy Galle Face protest in Colombo is gaining more support from many other parts of Sri Lanka and as well as across the world.

Over in the southern coastal city of Galle, a branch of the GotaGoGama (Gota Go Village) was opened on Friday (15) evening in support of the Galle Face Protest.

The people in Galle told News 1st that since they are unable to travel to Colombo due to the fuel shortage, they decided to extend their support from their hometown.

Sri Lankans are protesting against the government’s handling of the economic situation, the protesters have been accusing Rajapaksa’s government of corruption and misrule.

President chairs meeting on current situation

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Several discussions were held on Saturday (16) under the auspices of President Gotabaya Rajapaksa regarding the current situation in the country.

The President’s Media Division (PMD) said the first discussion was between Finance Minister Ali Sabri, PC, Central Bank Governor Dr. Nandalal Weerasinghe, Secretary to the President Gamini Senerath, Presidential Advisor Lalith Weeratunga, and Secretary to the Ministry of Finance K.S. M. M. Siriwardena.

The President held another discussion with the participation of officials from the Ministries of Finance, Energy, and Health, said the PMD.

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Analysis: Sri Lanka bondholders brace for big losses in debt restructuring

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(Reuters) – Sri Lanka’s creditors face losing a third to half of their investment in the country’s dollar bonds, after the government announced it would restructure $11 billion worth of debt, the first such financial shake-up in its modern history.

Formal debt talks haven’t started but analysts are already crunching the numbers to estimate what kind of haircuts could be inflicted on bondholders.

Mired in economic crisis, Sri Lanka has halted all external debt payments and is prioritising its remaining hard currency reserves to buy food and fuel..

The country of 22 million has been hit by nationwide street protests and shortages of everything from power to medicines, and its dollar bonds trade at deeply distressed levels of around 40 cents in the dollar.

With markets factoring in an International Monetary Fund (IMF) loan programme as part of the debt overhaul, a $1 billion bond maturing on July 25 LK080475284= is valued at around 45 cents in the dollar, Refinitiv data showed.

Citi projects that, across the bonds maturing between 2022 and 2030, Sri Lanka may seek a coupon haircut of around 50%, a reduction of at least 20% in face value and maturity extensions between 10-13 years.

“Assuming an 11% exit yield, we estimate that the recovery value on the dollar bonds in such a scenario could range in the low to mid 40s,” Citi strategist Donato Guarino said, referring to the interest rate at which the new securities will trade on the day of the debt exchange.

Step-up coupons – interest payments that increase over time – could also play a role “to give the government more time to recover” after the restructuring, Guarino added, noting these were used in Ecuadorean and Argentine debt restructurings.

Tellimer analysts assumed in their base case scenario a 30% haircut. They assign a recovery value near 60 cents on the dollar for the bonds, with a 8% exit yield.

They also flagged an alternative scenario with a 42-cent recovery value and a 16% exit yield.

UNWELCOME SURPRISES?

Tellimer senior economist Patrick Curran considers a 50% haircut a “worst case” scenario, with a recovery value as low as 30 cents for a 16% exit yield.

He highlighted the possibility that the debt overhaul might not be as swift as hoped.

“While bondholders will receive some downside protection if negotiations drag out if interest is capitalised, prolonged delays will also make for a more onerous starting point and political risk will raise exit yields, potentially eroding recovery values,” Curran added.

Ratings agency S&P Global has said debt talks could be complicated and take “many months” to complete.

On Wednesday, it lowered Sri Lanka’s foreign currency rating to “CC” from “CCC” – two notches above the level denoting default – while Fitch cut its rating to “C” from “CC”. .

JPMorgan analysts say the debt servicing moratorium is expected to pave the way for an IMF programme but warn a restructuring might be “more comprehensive” than what has been announced.

As of now, the debt service suspension only covers about 55% of public debt, Citi calculates, noting the latest IMF report hints at a “tough programme ahead”.

The fund recommends tax reforms, and possibly, curbs on public-sector wages and capital expenditure.

Asset managers BlackRock (BLK.N) and Ashmore (ASHM.L) are among the top holders of Sri Lanka’s international bonds. They are part of a fledgling creditor group, with White & Case acting as legal adviser.

Bondholders are in wait and see mode until the government picks a financial adviser, one creditor said, speaking on condition of anonymity.

“The group’s idea so far is to be reactive, not proactive,” the source said.

Sri Lanka stock market shut after default announcement

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Sri Lanka’s securities regulator has directed the Colombo Stock Exchange to be shut for five days after the island announced a suspension of debt repayments and domestic gilt yields soared as attempts were made to reduce money printing.

The Securities and Exchange Commission of Sri Lanka believed “it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions.”

The Board of the Colombo Stock Exchange has made a request on April 15, to temporarily “close the stock market citing the present situation in the country.”

Sri Lanka’s central bank printed over two trillion rupees from 2020 to keep interest rates down, blowing the balance of payments apart driving up inflation and stock prices (asset price inflation).

When margin credit is available at low rates, the present value of long term assets go up. When rates eventually correct, prices come down to earth.

However there had also been strong inflationary expectations in the stock market where the rupee was expected to fall steeply after the money printing, keeping export and similar stocks up.

Stocks have stumbled in recent weeks as a monetary meltdown began and attempts are underway to arrest the slide.

Economists and analysts had warned that Sri Lanka was heading for dollar debt default and monetary meltdown and fuel shortages after ‘flexible’ inflation targeting, a pseudo domestic anchor with a reserve collecting peg, began trigger external instability and growth shocks.

Bar Association raises concerns over attempts to disrupt peaceful protests

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The Bar Association of Sri Lanka today said it views any attempts to disrupt a peaceful protest by the people with grave concern.

Responding to the measures taken by the police to move its trucks to the vicinity of Galle Face Green where a peaceful protest by thousands of people is ongoing, President of the BASL, President’s Counsel Saliya Peiris said any attempt to disrupt in whatever manner what is a peaceful protest by the people of this country will have grave repercussions for the country, its democracy, its economy and the rule of law.

The Bar Association of Sri Lanka in a statement said the trucks have now been removed after it was highlighted in the social media and brought to the notice of the authorities.

“The BASL views with grave concern any attempt to disrupt in whatever manner, what is a peaceful protest by the people of this country. Any such attempt will have grave repercussions for the country, its democracy, its economy and the rule of law,” it said.

The BASL called upon the Government to desist from taking any steps whatsoever to disrupt what is a legitimate exercise of the freedom of dissent of the people.