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Debt restructuring of USD 12.5 bn. to take place sans Parliament approval?

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A special meeting to appraise the Members of Parliament on CBSL duties was held yesterday (Sep. 03) in Parliament under the patronage of Speaker – Mahinda Yapa Abeywardana.

Members of Parliament, Dr. Nandalal Weerasinghe, Governor of the Central Bank, members of the Governing Board and the Monetary Policy Board, high officials of the Central Bank including Deputy Governors, the Secretary General of the Parliament Mrs. Kushani Rohanadeera, a group of parliamentary officials were present at this meeting held.

The meeting was held by the Governor of the Central Bank, members of the Governing Body and the Monetary Policy Board, Deputy Governors of the Central Bank, in fulfillment of the legal requirement that the Parliament or a Committee should inquire into the duties performed by the Central Bank once in every four months pursuant to the provisions of Section 80 (2) (a) of the Central Bank of Sri Lanka Act, No. 16 of 2023, upon a request made by the Parliament.

However, it is reported that only a handful of MPs had attended the meeting.

Dr. Suren Raghavan, Ashoka Priyantha, Colombo District MP Premanath C. Dolawatte, Anuradhapura District MP – Weerasena Gamage, Kalutara District MP – Anupa Pasquel, MP A.H.M. Fowzie and Matara District MP – Weerasumana Weerasinghe had attended the meeting.

During the meeting, it has been revealed that a debt restructuring of USD 12.5 billion has been planned with foreign private creditors without the approval of the Parliament.

MP Weerasumana Weerasinghe had commented that this will lead to Sri Lanka having to pay a 24% interest.

In response, the CBSL governor has stated that the relevant decisions are being taken by the Finance Ministry and not the CBSL.

The Governor of the Central Bank of Sri Lanka also pointed out that the inflation in Sri Lanka has been brought down to 5% compared to the existing situation and the policy interest rate has been brought down. 

The Governor further mentioned that it was possible to strengthen the rupee by stabilizing the exchange rate through the strengthening of reserves.
The Governor of the Central Bank pointed out the issues related to stabilizing the country’s financial system. He also stated that it is a point to note that the banking system in this country was prevented from collapsing, especially in the midst of the economic crisis. He also mentioned that the new Central Bank Act as well as the new laws introduced for the regulation of the banking system was beneficial. Moreover, technical matters regarding the measures taken to stabilize the financial system in this country, including the appointment of a financial system monitoring committee by the new Central Bank Act, for the stability of the entire financial system including the banking system and the non-banking financial system as well as the stock market and the insurance sector was clarified.

(Source : Aruna)

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Qatar, Kuwait, Bahrain close airspaces

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Iran has launched missiles at a US airbase in Qatar in response to strikes on its nuclear sites on Saturday.

Qatar confirms the attack on the US-run Al Udeid base, calling it a “flagrant violation” and says it reserves the right to respond directly.

The country has temporarily closed its airspace and US and UK citizens have been advised to shelter in place.

Meanwhile, Kuwait and Bahrain have also closed their respective airspaces.

(Agencies)

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China offers openness to all South Asian countries – Kusal Perera (Video)

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The 9th China-South Asia Expo, which opened on June 19 in Kunming, China, will conclude tomorrow (June 24).

This year’s event held under the theme “Solidarity and Coordination for Common Development, has attracted over 1,400 companies from 54 countries and regions, with Sri Lanka as the Guest of Honour country and Thailand as the special partner nation.

China-Sri Lanka bilateral trade reached a record high of USD 5.36 billion in 2024, representing a 13.4% year-on-year increase. This makes Sri Lanka China’s fastest-growing trade partner in South Asia.

The Sri Lankan pavilion was officially declared open by Sri Lanka’s Minister of Trade and Commerce – Wasantha Samarasinghe and Deputy Minister of Foreign Affairs and Foreign Employment – Arun Hemachandra, who jointly led the country’s high-level delegation to the prestigious regional event.

CGTN’s Ms. Li Qiuyuan spoke with Mr. Kusal Perera, a political analyst and writer for ‘Sri Lanka Mirror’, about his expectations for the expo.

Speaking, Mr. Perera said that Sri Lanka needs to see how the ‘export basket’ can be diversified from the traditional export goods such as tea, in order to make the most of this platform to boost bilateral trade and engagement with China.

When asked which emerging areas such as energy transformation, digital economy and low carbon development seem to be the most promising for the island nation, Mr. Perera highlighted the importance of a combination of energy, technology and environment. “But in the process, we also have to have our national economy planned to accommodate all that,” he emphasised, adding that it will be a long process for Sri Lanka.

He further commented : “I see China opening up instead of getting into protectionism like Europe. It’s basically the second largest economy in the world… still expanding… still improving… still developing…”

China’s economic openness for all South Asian countries is a huge opportunity in a global economy that now retreats with regulated and protected markets. Protectionism would not be a catalyst for economic growth. We in South Asia have to be open too. China is already open and its economy is growing on global trade. It’s their openness that has taken them everywhere” he adds.

(Video : CGTN)

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Fresh probe into Shiranthi’s bank account

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Deputy Minister of Public Security and Parliamentary Affairs – Attorney-at-Law Sunil Watagala has informed Parliament that a renewed investigation is underway into a fraudulent bank account allegedly maintained by Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa.

He stated that a fake account titled ‘Siriliya Saviya’ had been opened in her name and that the mandate form related to the ‘Siriliya’ Organization’s bank accounts had been fraudulently removed from the bank.

The Minister further revealed : 

The account, now suspended, was opened on November 14, 2006, at the People’s Bank, Suduwella Branch, Darley Road, Colombo 10, under account number 143/1/001/4/6235069. Shiranthi Rajapaksa is listed as the chairperson of the account, with Kalyani Dissanayake as secretary and Nirosha Jeevani as treasurer.

The account currently holds a balance of Rs.43 million. Records indicate that Rs. 82,900,088 had been deposited on 88 occasions, while Rs.39,015,656 had been withdrawn on 129 occasions. Additionally, a fixed deposit of Rs.10 million had been opened under the name ‘Siriliya’.

The Financial Crimes Investigation Division (FCID) has resumed investigations into the matter.

Deputy Minister also mentioned several other questionable financial transactions involving the Rajapaksa family, such as ;

  • Rs.152 million allegedly obtained by CSN (Carlton Sports Network) from the Treasury.
  • Rs.35 million obtained by Gotabaya Rajapaksa from the Urban Development Authority to build a memorial for his parents.
  • Rs.208 million used by Basil Rajapaksa to purchase a house in Malwana.

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