News

Bondholders express concern over debt restructuring amid political uncertainty

Published

2 weeks ago

April 20, 2024

editor

The representatives of bondholders who hold more around 50 percent of Sri Lanka’s outstanding international sovereign bonds (ISB) , during closed door interactions with the representatives of Sri Lankan political parties, have expressed fear whether any debt restructuring agreement will be honored in case of a regime change at the elections pending this year, Daily Mirror learns.

The bond holders held talks with various political leaders including from the opposition parties such as the Samagi Jana Balawegaya (SJB), the National People’s Power (NPP) and the United Republican Front (URF) led by MP Patali Champika Ranawaka during the New Year holiday period.

During talks with the NPP, the party has assured that the programme with the IMF (International Monetary Fund) will not be derailed.

Currently, the Sri Lankan government has concluded the initial restricted discussions with nine members of the Steering Committee of the Ad Hoc Group of Bondholders over a span of three weeks. Sri Lanka was joined by its legal and financial advisors Clifford Chance and Lazard, respectively, while the restricted members of the Steering Committee were joined by the Group’s legal and financial advisors, White & Case and Rothschild & Co., respectively.

The Steering Committee as a whole comprises ten of the largest members of the Group, with the Group controlling approximately 50% of the aggregate outstanding amount of ISBs.

Earlier, the Finance Ministry said in a statement that the parties failed to come to an agreement on restructuring terms, despite the constructive discussions.

During this period, Sri Lanka, the Steering Committee and its advisors met during a two-day working session in London on 27 and 28 March to discuss the Group’s latest debt treatment proposal. Prior to the meetings, March 15 Sri Lanka had also sent its own debt treatment proposal to the Group’s advisors which was rejected by the Steering Committee.

Also, Sri Lanka rejected last week international bondholders’ proposal to restructure more than $12 billion in debt, putting at risk critical International Monetary Fund support and delaying its efforts to resolve a two-year-long debt crisis.

(dailymirror.lk)

(Except for the headline, this story, originally published by dailymirror.lk has not been edited by SLM staff)

News

Visa issue : Measures against officials challenging cabinet decision

Published

36 mins ago

May 3, 2024

nipuni

The government has issued a statement following the recent chaos at the Bandaranaike International Airport in Katunayake and allegations over outsourcing the on arrival visa process.

In a statement, the Department of Government Information refutes claims stating that the on arrival visa process has been outsourced sans a cabinet decision. It notes that Cabinet approval was granted last September to a proposal tabled by Minister Tiran Alles.

As per the procurement process, it was outsourced to VFS Global, a company with over 3388 centres across 151 countries, it adds.

The statement also mentions that the government has decided to look into issues that had recently taken place due to the company’s visa issuing process.

It adds that reports claiming that the entire visa process has been outsourced to a foreign company, are also baseless, clarifying only the facilitation work for visa issuance has been assigned to this company.

The statement also notes that the government will take necessary action against officials who are challenging the aforementioned cabinet decision in action or by issuing statements.

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News

Planters’ Association clarifies on daily wage increase

Published

2 hours ago

May 3, 2024

nipuni

The Planters’ Association of Ceylon, in a statement has issued a clarification with regard to the reported wage increase in the tea and rubber sector.

“Given the facts stated in the Gazette notification, the implication in media reports that the increased payments will be applicable from 1st May 2024, is inaccurate and misleading. Neither the effective date – on which the new proposed minimum payment will be applicable – nor the quantum of such payment has, as yet, been determined,” the statement notes.

Noting that the relevant gazette also notes that objections to the proposed determination will be received until May 15th, the Association also states they will be filing objections to these proposals within the time frame stipulated by the Labour Commissioner.

News

China – SL to expedite implementation of MoUs

Published

3 hours ago

May 3, 2024

nipuni

Chinese Ambassador to Sri Lanka Qi Zhenhong had called on Prime Minister Dinesh Gunawardena at the Temple Trees in Colombo yesterday (May 02) to discuss ways and means of early implementation of the agreements and Memorandums of Understanding (MOUs) reached between the two countries during the Prime Minister’s official visit to China in March 2024.

The Prime Minister said the implementation of the MOUs would begin a new chapter in the long-term friendship and economic cooperation between Sri Lanka and China.

Secretary to the Prime Minister Anura Dissanayake had signed the agreements on behalf of Sri Lanka, and the secretaries of nine Ministries signed on behalf of China in the presence of Prime Minister Dinesh Gunawardena and Chinese Prime Minister Li Qiang.
During the talks with Ambassador Qi Zhenhong, the Prime Minister stated that in addition to implementation of the MoUs, Sri Lanka would also welcome direct private investments from China as well as investments in agriculture, renewable energy, IT, education and water supply sectors to provide long term solutions to economic issues.

Ambassador Qi Shenhong said he was pleased to see the resilience of Sri Lanka to overcome difficulties and assured China’s continuous support to Sri Lanka’s current efforts at debt restructuring and meeting economic challenges.

Prime Minister’s Secretary Mr. Anura Dissanayake and Chinese Economic Counsellor were also present at this meeting.

(Prime Minister’s Media)