News

China gives Sri Lanka a two-year moratorium

Published

2 years ago

January 22, 2023

editor

China yesterday responded to Sri Lanka’s long-standing request for a commitment on rescheduling its debts as a prelude to a bailout by the International Monetary Fund (IMF) with an offer for a two-year moratorium, the media has reported.

In a letter to President Ranil Wickremesinghe in his capacity as Finance Minister, the Exim Bank of China responsible for much of the loans given to Sri Lanka said the two-year moratorium would be a short-term suspension of the debts owed to China while asking all parties, i.e. Sri Lanka’s creditors to get together to work out medium-term and long-term commitments.

It is learned that the letter also extends China’s support to the IMF’s Extended Fund Facility (EFF) and requests the IMF to go ahead with the discussions on debt restructuring that will lead to an IMF program.

The letter giving China’s assurances arrived on the eve of a Paris Club meeting of Sri Lanka’s creditors scheduled for next week where Sri Lanka’s debt restructuring measures are to be discussed as a prelude to a US dollars 2.9 million IMF program to bail out Sri Lanka from its current economic crisis.

Sri Lanka’s efforts to get China’s support along with India’s support for rescheduling its loans were being negotiated for several months.

It comes shortly after India announced that it had written to the IMF extending its assurances in writing that it would support an IMF program for an Extended Fund Facility for Sri Lanka. China, India and Japan are Sri Lanka’s largest bilateral creditors.

Soon after the Indian assurances were given to the IMF, its External Affairs Minister S. Jaishankar called upon other countries to be “proactive” in supporting Sri Lanka. Dr. Jaishankar who was in Sri Lanka on a 24-hour visit on Thursday and Friday said India was willing to support Sri Lanka “fully” in its efforts to come out of its current financial crisis.

China’s International Department Vice Minister Chen Zhou who was in Sri Lanka earlier in the week, also announced that China was about to announce some “good news” on Sri Lanka’s request to consider rescheduling its debts.

The letter from the Chinese Exim (Export-Import) Bank, the state-run institution responsible for foreign loans, arrived in Colombo on the eve of the Chinese lunar New Year which begins today.

It was not immediately known if the Chinese assurances contained in the letter would meet the requirements of the Paris Club and the IMF.

Participation at the Paris Club by India and China was also not immediately known, but the Sunday Times learns that the Sri Lankan Finance Ministry was confident it was sufficient consent for the IMF to go ahead with discussions on its debt restructuring schedule leading to its bailout program. for Sri Lanka.

(Sunday Times)

News

President sets maximum retail and wholesale prices for rice

Published

13 hours ago

December 8, 2024

editor

Following a discussion with rice traders, President Anura Kumara Dissanayake has directed new maximum retail and wholesale price limits for various rice types, according to the President’s Media Division (PMD).

President Dissanayake has directed rice traders to sell Nadu rice to consumers at a wholesale price of Rs. 225 per kilo and a retail price of Rs. 230 per kilo.

The President also instructed the officials Consumer Affairs Authority to closely monitor the situation over the next ten days and strictly enforce the law against rice mill owners who fail to comply with the fixed prices.

President Dissanayake made these remarks during a meeting with officials from the Ministry of Trade, Commerce, Food Security and Cooperative Development, along with rice traders, at the Presidential Secretariat today (07), the PMD said.

The President highlighted that the largest investments in the country are allocated to the Ministry of Highways, followed by the Irrigation and Agriculture sectors, with substantial subsidies provided to farmers.

The President further pointed out that low-interest bank loans have been provided to traders for the purchase of paddy and urged rice traders not to undermine the public’s right to access affordable rice.

As a result, the following rice prices are to be implemented:

• Wholesale price of a kilo of Nadu Rice: Rs. 225, Retail price: Rs. 230
• Wholesale price of a kilo of White Rice: Rs. 215, Retail price: Rs. 220
• Retail price of a kilo of imported Nadu Rice: Rs. 220
• Wholesale price of a kilo of Samba rice: Rs. 235, Retail price: Rs. 240
• Wholesale price of a kilo of Keeri Samba: Rs. 255, Retail price: Rs. 260

The President also strongly criticized rice mill owners for frequently changing rice prices on a daily basis and instructed the Consumer Affairs Authority to monitor the daily rice production and distribution by mills.

Furthermore, President Dissanayake urged the rice traders to collaborate with the government in resolving the rice-related issues in an amicable manner, the statement added.

The meeting was attended by Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development A. Wimalenthirajah, Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation D.P. Wickramasinghe, Director General of the Department of Development Finance Malarmathy Gangatharan, Acting Director General of the Department of Agriculture Dr. S.K. Wasala, Chairman of the Consumer Affairs Authority Hemantha Samarakoon, Chairman of the Paddy Marketing Board A.M.U. Pinnalanda, Director of the Hector Kobbekaduwa Agricultural Research and Training Institute A.L. Chandika, among other officials.

–PMD

News

Rameswaram fishermen protest seeking fishers’ release from Sri Lankan custody

Published

13 hours ago

December 8, 2024

editor

Hundreds of fishermen went on a strike in Rameshwaram on Saturday condemning the arrests of 14 Tamil Nadu fishermen by the Sri Lankan Navy and the seizure of their boats.

More than 500 boats have been docked at the Rameshwaram harbour. According to a Maalaimalar report, Mechanised Boats Fishermen’s Association held a meeting on Friday where they decided to go on strike and decided not to engage in fishing activities on December 7.

Recently, 14 Tamil Nadu fishermen were arrested by the Sri Lankan Navy and sent to Vavuniya Prison.

The associations condemned the unfair activities of the Sri Lankan Navy and demanded the immediately release of the arrested fishermen.

Source: DT Next
–Agencies

News

Vote on Account for first four months of 2025 passed in Parliament

Published

1 day ago

December 7, 2024

editor

The resolution for the Vote on Account, ensuring government operations and debt servicing for the initial four months of 2025, was passed in Parliament yesterday (6) without a vote.

The debate on the resolution, initially presented on 3 December, spanned two days.