News

SL to secure likely 6-yr. moratorium on debt owed to India, Paris Club

Published

2 months ago

March 22, 2024

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Sri Lanka is close to finalising a debt treatment plan with India and the Paris Club, sources familiar with the negotiations said, pointing to a likely moratorium of upto six years and a reduced interest rate during the repayment period.

“The discussions are at an advanced stage. A formal agreement on the terms can be expected very soon,” the Colombo-based source told The Hindu on Thursday, after a recent discussion among members of the Official Creditor Committee [OCC].

As many as 17 countries that have extended loans to Sri Lanka formed the Committee last year for ease of debt restructuring negotiations. China opted to stay out of the platform, but has been attending its meetings as an observer. Meanwhile, Colombo has repeatedly assured the OCC that it would negotiate repayment of Chinese loans on comparable terms.

Finalising agreements with the official creditors and reaching “in principle” agreements with the key private creditors would be “critical next steps” in Sri Lanka’s economic recovery plan, the International Monetary Fund (IMF) on Thursday. After defaulting on its nearly $ 50 billion external debt in April 2022, Sri Lanka has been engaging with its diverse lenders to work out a debt treatment plan that is compatible with its pace of recovery. While Colombo is said to have made considerable progress in negotiating a deal with its bilateral creditors, private creditors holding the largest chunk of Sri Lanka’s foreign debt continue to pose a challenge.

Meanwhile, Sri Lanka got a step closer to receiving the next instalment of the International Monetary Fund’s (IMF) assistance, as part of the $3 billion package it obtained last year, to recover from the unprecedented financial crash witnessed in the island nation in 2022. Authorities reached a staff-level agreement with the Fund on the second review of its four-year Extended Fund Facility (EFF) arrangement. Upon completion of the IMF Executive Board’s review, Sri Lanka would have access to about US$337 million, taking IMF assistance it has received so far to $1 billion, the Fund said in a statement.

Commending Sri Lankan authorities for “making good progress” in implementing an “ambitious” reform agenda, IMF officials told a media gathering in Colombo that the government had shown “commendable outcomes”, in curtailing inflation, ensuring reserve accumulation, and strengthening public finances.

(The Hindu)

(Except for the headline, this story, originally published by ‘The Hindu’, has not been edited by SLM staff)

News

Concessionary vehicle permits: MPs have their way, ignoring economic crisis

Published

9 hours ago

May 13, 2024

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Despite the cost of living sizzling at red hot levels and the country being cash- strapped, the House Committee of Parliament has endorsed the proposal to offer concessionary vehicle permits for MPs as requested by them, a top source said.

The source familiar with the decision said the committee which looks into the requirements of the MPs positively considered the request by them for such permits in line with the similar facilities offered to executive graders in different categories of the public service.

The MPs , numbering more than 100 and representing different parties, submitted a letter to Speaker Mahinda Yapa Abeywardena asking for permission to import vehicles with no duty for their use.

Following the approval by the House Committee, the Speaker is expected to write to President Ranil Wickremesinghe who is authorized to execute the decision as the Finance Minister.

After constitution of every Parliament, the MPs are given vehicle permits . However, the MPs elected to the current Parliament at the 2020 general election did not get the benefit due to the economic crisis and the ban on vehicle imports to save foreign exchange.

The government is now mulling the possibility of lifting the ban. The MPs are likely to get permits once the ban is lifted only.

In the past, there were reports about the MPs selling off their permits and earning multimillion rupee revenue each.

(dailymirror.lk)

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

News

CAA seizes 176,000 kg of rice unfit for human consumption

Published

9 hours ago

May 13, 2024

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Officials at the Anuradhapura unit of the Consumer Affairs Authority (CAA) have seized over 176,000 kg of rice unfit for human consumption during a raid.

It has been revealed that the stock was taken to a mill for repackaging with the intention of being distributed among low-income families under a government programme.

CAA officials had conducted the raid when the rice was being mechanically cleaned and repackaged after being taken to a privately owned mill in the Kiriibbewa area by 08 lorries. It is said that the expiry date of the new packaging had been deviously extended by a month.

The rice mill had been sealed while the police had arrested the owner, reports add.

(Source : Aruna)

News

NMRA to introduce ‘security sticker’

Published

9 hours ago

May 13, 2024

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The National Medicines Regulatory Authority (NMRA) states that they will introduce a security ‘sticker’ to verify registered medicines in the market.

The move hopes to counter several irregularities in the pharmaceutical field such as the entering of substandard and dangerous medicines entering Sri Lanka through unregistered importers.

Speaking to media yesterday (May 12), NMRA Chairman Dr. Ananda Wijewickrama has said that they hope to implement the new move within a month or so.