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“Current govt. forced to borrow heavily to repay previous debts”

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Senior Professor Wasantha Athukorala of the Department of Economics and Statistics at the University of Peradeniya revealed that the previous government had borrowed approximately Rs. 800 billion per month from the domestic market without any repayment plan. The current Government is compelled to borrow to repay these loans, he added.

Professor Athukorala emphasised that the current Government is paying off a significant amount of debt accumulated through Treasury Bills and Bonds by previous administrations. The Government will have to borrow to repay Rs. 4,859 billion in Treasury Bills and Bonds maturing over the next year.

Responding to allegations of large-scale borrowing by the current Government since assuming office, Professor Athukorala stated that the majority of the funds the Government is borrowing now is to settle previous loans. The former governments had no concrete plans to repay these loans, which forced the current Government to continue borrowing to meet these obligations.

Highlighting the scale of previous borrowings, he said that around US$ 12 billion of the US$ 17 billion borrowed through International Sovereign Bonds was taken between 2015 and 2019. This accounts for nearly 70 percent of the total foreign borrowings during that period. With Sri Lanka’s credit rating downgraded by agencies like Fitch, the country has lost the ability to borrow from foreign markets.

He also noted that even though foreign loans have decreased, Sri Lanka is still borrowing from bilateral and multilateral institutions. Even if foreign loans are restructured, the country will eventually have to repay them. Domestically, the government raises funds through Treasury Bills and Bonds every week to meet its financial needs.

Looking ahead, the Government will need to repay Rs. 3,774 billion in Treasury Bills from November this year to November next year. Additionally, Rs. 13,237 billion in Treasury Bonds must be settled by March 2045, and Rs. 1,125 billion in Bonds will mature next year. In total, Rs. 4,859 billion will mature between this November and the next.

These loans, borrowed from local banks and financial institutions, cannot be avoided. Failure to repay them could plunge the banking system into crisis. Therefore, the Government will continue to borrow from the market every week to meet the maturing debt obligations.

While previous governments borrowed to repay loans without any long-term plan to reduce the debt burden, the current Government needs a strategy to address this ongoing debt. Each month, the Government borrows approximately Rs. 400 billion to meet debt repayments. From January to August of this year, the Government borrowed about Rs. 800 billion per month from the domestic market, compared to last year.

Professor Athukorala stressed the importance of establishing a plan to reduce borrowing gradually. Over the next five years, the Government should aim to reduce monthly domestic borrowings to around Rs. 200 to 250 billion to ensure sustainable debt management. Such a plan would help avoid future debt crises. He also observed that while previous governments often wasted borrowed money, there are signs that wasteful spending is decreasing under the current administration, which is a positive development.

(Daily News)

(Except for the headline, this story, originally published by Daily News has not been edited by SLM staff)

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The National War Heroes Commemoration tomorrow at Kotte Cenotaph

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The 16th National War Heroes Commemoration Ceremony will be held on Monday (19 May) at the National War Hero Cenotaph in Sri Jayawardenepura, Kotte, from 4.00pm to 6.00pm.

A series of island-wide community welfare programmes will also be carried out by armed forces, Police and Civil Security Department in view of the War Hero Commemorations.

Deputy Minister of Defence Major General Aruna Jayasekara (Retd) is expected to represent President Anura Kumara Dissanayake at the event. Field Marshal Sarath Fonseka, Admiral of the Fleet Wasantha Karannagoda and Marshal of the Sri Lanka Air Force Roshan Gunathilleke are also scheduled to attend the ceremony.

The Ministry of Defence on Friday convened a press conference to announce the preparations for the ceremony. Commanders of the Navy and Air Force, Army Chief of Staff, senior military officials and Ministry representatives were present at the press briefing.

Defence Secretary Air Vice Marshal Sampath Thuyacontha (Retd) underscored the national significance of the annual commemoration, paying tribute to the brave men and women of the armed forces, Sri Lanka Police and Civil Security Department who laid down their lives in the defence of the nation.

He reiterated the Ministry’s and the Tri-forces’ commitment to preserving the memory of fallen heroes, ensuring that their legacy of patriotism, sacrifice, and unwavering commitment to duty continues to inspire future generations.

During the briefing, officials of Ranaviru Seva Authority and armed forces provided an overview of the ceremonial proceedings, which will include wreath-laying, special tributes, and military honours, with the participation of distinguished guests, military personnel, and the families of war heroes.

The event seeks to serve as a solemn occasion for the nation to express its gratitude and respect for those who selflessly served the country’s sovereignty and national security.

The Ministry of Defence calls upon all citizens to stand in solidarity in remembering the nation’s war heroes, reaffirming collective appreciation for their dedication to protecting the country and its people.

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NMRA chief resigns, citing threats to life

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Saveen Semage, the Chief Executive Officer (CEO) of the National Medicines Regulatory Authority (NMRA), resigned with immediate effect yesterday, citing threats to his life.

On May 9, CCTV in his home captured two men breaking in and walking around the residence for around half an hour from 11.30pm to midnight. They were observed peeping into the bedroom where Dr. Semage slept. His wife and children were also asleep in the house.

Dr. Semage, a public health specialist, was appointed to the position in January 2024. He was also previously CEO from November 2021 to May 2022, when he resigned over differences with former Health Minister Keheliya Rambukwella. He was brought back last year by Ramesh Pathirana—who replaced Minister Rambukwella after he was forced to resign over irregularities in drug procurement—to clean up the drugs regulatory mechanism.

However, he faced stiff resistance from the pharma industry, particularly in his efforts to break drug monopolies and oligopolies that were blamed for rigging tenders (typically agreements among competitors to fix prices, allocate markets, or engage in other anticompetitive activity). He was also a victim of social media attacks largely blaming him for being politically motivated.

“There was a lot of tension within the NMRA and the pharmaceutical industry during the last two to three weeks because of my efforts in pricing and in breaking monopolies and oligopolies to save public funds,” Dr. Semage told the Sunday Times. “I think the break-in was a threat in an effort to remove me.”

“During the past 15 months, the NMRA has cleared the backlog of registrations and streamlined re-registration for drugs. He was also able to trace fake documents and to kick-start a digitalisation process that abruptly came to an end in 2021 when the NMRA database was mysteriously erased. During his term, the Authority also doubled its staff, taking in 30 new pharmacists, among others. The National Advisory Committee and Appeals Committee were also put in place, and a pricing mechanism, along with guidelines, was published.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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Dual citizenship backlog: 1000 to be issued soon

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The Department of Immigration and Emigration is struggling with a backlog of more than 3,000 dual citizenship applications piled up over the past few months, with some papers submitted more than seven months ago remaining unattended.

At least 1,000 of these applications have got the all clear from the relevant authorities, including clearance from the Police and the State Intelligence Service (SIS), but the applications have stalled at the department level, the Sunday Times learns.

The main dual citizenship applicant is required to pay US$ 2000 (around Rs 600,000), with the spouse and unmarried children below the age of 22 paying US$ 500 each. It is this category of applicants who contribute substantially to the income of the department.

Public Security Minister Ananda Wijepala, when contacted by the Sunday Times, admitted the clearance of dual citizenship certificates had slowed down and said that he had instructed the department to immediately begin the issue of certificates to around 1,000 applicants whose background checks had been completed. They will receive the certificates within a week.

“There has been a delay, but I have instructed the department officials to ensure that the work is expedited,” he said. The department’s citizenship division, which handles the applications, comes under a deputy or assistant controller.

Many dual citizenship applications are submitted through Sri Lanka’s overseas missions. “Applicants are inconvenienced by the delay in the issuing of the certificates, as those who have taken foreign citizenships need the dual citizenship from here for their land/property transactions, financial activities, etc.,” an applicant told the Sunday Times.
According to the performance report of the department for 2023, more than 7,300 dual citizenships were issued, but the latest statistics are not yet available.
Meanwhile, the Department of Motor Traffic has run out of new number plates.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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