News

Sri Lanka seeks loan repayment moratorium in ongoing debt restructuring talks

Published

2 months ago

March 31, 2024

nipuni

Sri Lanka is seeking a loan repayment moratorium for its US$ 12 billion bilateral debts until 2028 during the ongoing talks in London with bondholders on debt restructuring as the country still grapples to emerge from the economic crisis, a Finance Ministry top official divulged.

A bondholders steering committee is expected to reach an agreement or sign a memorandum of understanding considering a proposal from the government to rework the overseas debt that has been in default since 2022.

The government is asking lenders to accept a plan to defer payments for five years and then pay down the debts from the beginning of 2028 through 2042, the top official said.

China has expressed willingness to continue supporting its financial institutions to actively negotiate with Sri Lanka, maintain close communication with other creditors in the International Monetary Fund, and assist Sri Lanka in financial relief, China’s foreign ministry said in a joint bilateral statement (with Sri Lanka) on Friday.

This statement was issued following the conclusion of Prime Minister Dinesh Gunawardena’s visit to China, where he discussed finalising a debt restructuring deal on the instructions of President Ranil Wickremesinghe.

The two countries also signed nine new agreements amid Sri Lanka’s efforts to restructure and revive its economy.

Finance State Minister Shehan Semasinghe, who accompanied the Prime Minister, noted that Sri Lanka reached an agreement in principle with the EXIM Bank of China, and it could be extended further this year.

China’s Exim Bank had agreed to extend the US$4.5 billion debt servicing for two years starting in 2022 as an immediate contingency measure based on Sri Lanka’s request.

Sri Lanka’s largest bilateral debtors, China with $4.6 billion and India with $1.37 billion, are outside of the Paris Club.

India has already decided to go along with the Paris Club, but China does not want to get onto that platform.

China has given loans to several other countries in the world amounting to around $600 billion, and therefore it cannot consider Sri Lanka for preferential debt treatment, officials said.

Chinese authorities have already informed the government to resume the debt repayment from April 2024, and thereafter they can consider extending some relief.

Sri Lanka’s external debt stock stood at US$ 37.3 billion as of December 2023, bilateral debt at US$ 10.8 billion, multilateral debt at US$ 10.84 billion, and commercial loans at US$ 14.74 billion.

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

News

Fire breaks out in workers’ living quarters near Colombo Port

Published

14 hours ago

May 19, 2024

editor

A fire has reportedly broken out in the living quarters of highway access road workers near the Colombo Port.

The Colombo Fire Brigade said it has dispatched four fire trucks to assist in extinguishing the flames.

News

President Wickremesinghe meets Elon Musk to discuss starlink implementation in Sri Lanka

Published

14 hours ago

May 19, 2024

editor

President Ranil Wickremesinghe has met with billionaire and investor Elon Musk on the sidelines of the 10th World Water Forum High-Level Meeting being held in Indonesia.

During the meeting, Wickremesinghe and Musk discussed the implementation of ‘Starlink’ in Sri Lanka.

It was emphasized that Sri Lanka is committed to expediting the application process to connect the country to the global Starlink network, according to the President’s Media Division (PMD).

Minister Jeevan Thondaman, accompanying the President on his two-day visit to Indonesia, tweeted: “President and Elon discussed Sri Lanka’s recovery, economic potential, and new opportunities for investment. Great to have two visionary leaders come together for Sri Lanka.”

Elon Musk arrived in Indonesia’s resort island of Bali on Sunday to launch Starlink satellite internet service in the world’s largest archipelago nation.

The billionaire head of Tesla and SpaceX, and owner of social platform X, arrived by private jet on the idyllic “island of the gods,” renowned for its tropical beaches, terraced rice paddies, mystical temples, and colorful spiritual offerings.

Musk is slated to launch the service alongside Indonesian President Joko Widodo in a ceremony later Sunday at a public health clinic in Denpasar, the provincial capital of Bali.

Musk will also sign an agreement to enhance connectivity in the country’s health and education sectors.

During his first in-person visit to Bali, Musk is also scheduled to participate in the 10th World Water Forum, which seeks to address global water and sanitation challenges.

–With agencies inputs

News

Senior diplomat to oversee Sri Lankan embassy in Russia

Published

24 hours ago

May 19, 2024

nipuni

It is reported that the government has planned to send a senior officer of the foreign service to the Sri Lankan embassy in Russia until a new ambassador is appointed due to the lack of an ambassador.

Minister of State for Foreign Affairs Taraka Balasuriya has told the media that the absence of an ambassador is just a gap in the work procedure, and based on the current situation in Russia, a senior official of the Ministry of Foreign Affairs will be directed to supervise its affairs.

He emphasized that a retired foreign service senior is being sent and the lack of an ambassador is not a major problem.

The Minister further stated that there is already a senior Foreign Service officer there, and given the urgent need, a very senior Foreign Service officer is being sent not because the officer currently in Russia is inadequate.

Mr. Balasuriya has stressed that this is being done to strengthen the operation and that the work will be done according to the normal protocol.

However, even though an ambassador has been appointed to Russia, Mr. Balasuriya has made arrangements not to reveal who it is to the media.

The former Ambassador of Sri Lanka to the Russian Federation, Prof. Janitha A. Liyanage, was given three extensions, and she ended her service at the Sri Lankan Embassy in Moscow on April 29.

At present, Counsellor Ruvini K. Munidasa serves as the Chargé d’Affaires of the Embassy.