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Economic stabilization process advancing under new govt.

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A press briefing on the economic stabilization process and the proposed relief packages for the public was held today (Dec. 26) at the Presidential Media Center (PMC).

Minister of Labor and Deputy Minister of Economic Development, Dr. Anil Jayantha Fernando, along with Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma, attended in the briefing.

The media statement released by the PMD during the press briefing is as follows:

1. Economic Stabilization

Economic stabilization is key to take the country out of abyss created by past regimes.  At the time the government assumed office those who are responsible for the crisis had unilaterally suspended external debt servicing in April 2022, entered into IMF program for Extended fund facility (EFF) of approximately USD 3 billion over a period of 4 years to be received in 8 installments, and paddled through the IMF program and debt restructuring process connected to in in line with debt sustainability analysis connected to it. The delayed and complex nature of the debt restructuring process incurred additional costs to the country and created additional burdens on the people. However after, considering both pros and cons of the context prevailed at that time in terms of social, political and economic perspective, the government proceeded with the options in the best interest of the people of the country.

Accordingly, it was possible to reach the staff-level agreement of the third review on 26th November 2024, in line with the program parameters, and government revenue measures   with appropriate engagement, and timely facilitation. In the lead-up to the board approval from the IMF, the government is engaging with necessary stakeholders to obtain the next tranche of the EFF.Debt Restructuring
It consists of both domestic and external restructuring. Domestic debt restructuring was completed in July 2023. External restructuring excludes multilateral creditors on various ground and arguments. The rest consists of official bilateral debt and private ISB holders.  

Bilateral Debt

The bilateral debt is delt with the Official Creditor Committee (OCC) co-chaired by France, India and Japan representing 17 countries, China Exim Bank, China Development bank, other official creditors (Kuwait, Saudi Arabia, Iran and Pakistan) and other commercial creditors.

OCC had agreed to the terms and conditions in June 2024 and the loans with China Exim bank had already been restructured in October 2023 within the agreed framework, ensuring comparability of treatment (CoT). Except the other official creditors (Kuwait, Saudi Arabia, Iran and Pakistan) accounting roughly USD 300 million representing about 1% total external debt subject restructuring , all other bilateral creditors have already agreed for restructuring  within the agreed framework.ISB Creditors

Much delayed ISB restructuring had passed several stages of negotiations with agreements, disagreements, changes to proposals, adjustments in line with DSA and IMF consents, had finally agreed in principle (AIP) on 19 September 2024 just two days prior to the presidential election. Ad Hoc Group (AHG) and Local banking consortium represent ISBs which account for USD 14.2 billion including a past due interest of USD 1.7 billion.

By prioritizing and facilitating actions in a timely manner, the new government has demonstrated a strong political commitment to steering the country toward economic stability. These efforts toward financial stability have been independently acknowledged by third parties, including rating agencies which have upgraded the ratings by several notches, which was only possible due to the correct prioritization and implementation of economic stabilization measures. Hence, the government continued with the restructuring process and facilitated it to ensure the successful completion of the issuance of new bonds for the exchange of existing ones on 20th December 2024 in order to achieve the critical objective of stabilizing the economy in pursue of navigating the country with the growth and development trajectory towards a thriving nation and beautiful life.

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2. SME Sector Facilitation2.a.1. Parate Extension

Instead of merely postponing the Parate execution date, the government engaged with stakeholder groups to ensure acceptable solutions was found for this long-standing issue. As a result, the Parate execution has now been extended until 31st March 2025.2.a.2. Relief Package

The relief for businesses is not only in the form of an extension of time. Based on data provided by the Central Bank, 99% of borrowers with outstanding capital of less than 25 million rupees in restructured loans have been granted a 12-month extension to renegotiate with banks and agree on a settlement path. Borrowers with debts between 25,000,000 and 50,000,000 rupees have been granted a 9-month extension, while all other borrowers are entitled to a 6-month extension. This relief package, proposed by the government and to beimplemented through the Central Bank, also includes several other important measures, such as easing the credit rating status, extending the repayment period, offering low interest rates for restructured debt, and providing a transparent mechanism to resolve valuation disputes.

This package aims to ensure that the SME sector can actively contribute to the economy.

2.b. School Stationery Assistance for School Children2.b.1. Children in the Aswesuma Families

To ease the burden on parents from vulnerable groups in society, Rs. 6,000 per child has been allocated to purchase essential school books and stationery for the upcoming school term. Children from Aswesuma recipient families will begin receiving this benefit shortly.2.b.2. Children Not Receiving Aswesuma
Children from families who are not currently receiving Aswesuma but are facing economic hardship will also be provided with this benefit, based on recommendations from the Ministry of Education. It is expected that the process will be finalized soon, and the disbursement scheme will start within a few days, ensuring that all deserving children facing economic hardship receive assistance.

(President’s Media Division)

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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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