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Finance Ministry & CBSL hold virtual meeting with creditors

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The Sri Lankan authorities held a virtual meeting with Sri Lanka’s official creditors today (03).

The meeting was chaired by the Secretary to the Treasury and the Ministry of Finance, Mr. K M Mahinda Siriwardana, and the Governor of the Central Bank of Sri Lanka, Dr. P. Nandalal Weerasinghe.

Sri Lanka remains fully committed to advancing engagements with all its creditors in an equitable and transparent way. The meeting represented another important step towards securing International Monetary Fund (IMF) Board approval for Sri Lanka’s IMF program, a media release by the President Media Division said.

The State Minister of Finance, Mr. Shehan Semasinghe, has said:

“Sri Lanka is at a critical stage, and we are seeking IMF program approval as soon as possible so that we can restore macroeconomic stability. We are grateful to our bilateral partners for their continued engagement and support during this process. The IMF program and our ambitious economic reforms will restore public debt sustainability, help protect the most vulnerable and restart our growth engine. This government is focused on re-establishing social and economic prosperity, and ensuring our citizens have access to critical public services.”

The Governor of the Central Bank of Sri Lanka, Dr. P. Nandalal Weerasinghe, has said:

“The IMF program and economic reform agenda will reconstitute Sri Lanka’s financial buffers. I thank the official creditors for joining this productive meeting where we were able to discuss Sri Lanka’s current financial position and progress on reforms.”

Sri Lanka reached a Staff-Level Agreement with the IMF on a four-year program supported by the Extended Fund Facility on 1st September 2022. The program, amounting to USD 2.9bn, is expected to restore macroeconomic stability and debt sustainability while protecting the vulnerable and safeguarding Sri Lanka’s financial system. This agreement remains subject to IMF Executive Board approval.

The IMF program has been centred around Sri Lanka’s ambitious reform program. The government’s reform agenda is based on four pillars:

  1. The first pillar is fiscal reform. The program foresees the implementation of ambitious revenue-based fiscal consolidation measures, combined with revenue administration reforms and the introduction of fuel and electricity pricing mechanisms to minimize fiscal risks stemming from SOEs. It also includes the enhancement of existing social safety nets to protect the most vulnerable;
  2. The second pillar will be to restore public debt sustainability. Sri Lanka’s debt situation has been deemed unsustainable by the IMF and will need to be addressed by a comprehensive debt treatment;
  3. Thirdly, the program will aim to restore price stability and rebuild external buffers. The government is committed to refraining from any monetary financing and the Cabinet will soon approve the Central Bank Act that will strengthen the Bank’s independence and modernise its policy framework;
  4. The fourth pillar of the program is the safeguarding of financial system stability, a key condition to Sri Lanka’s economic recovery. This will be achieved by ensuring that Sri Lanka’s banking system is adequately capitalised and by strengthening the resilience and governance of its state-owned banks.
  5. In addition to these pillars, the government will introduce a series of anti-corruption reforms that will align Sri Lanka’s legal framework with international standards and will implement broader structural reforms to unlock Sri Lanka’s growth potential.

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SLAF helicopter crashes into Maduru Oya during training session

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A Bell 212 helicopter belonging to the Sri Lanka Air Force (SLAF) has reportedly crashed today (May 09) into the Maduru Oya Reservoir.

The incident occurred during a training exercise held as part of the Sri Lanka Army Special Forces passing-out ceremony in Maduru Oya.

The aircraft was carrying ten Special Forces soldiers and two pilots at the time of the incident.

All personnel reportedly escaped without fatal injuries. Several have been hospitalised for treatment.

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American Cardinal elected as new Pope: Pope Leo XIV

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Following a 02-day papal conclave, American Cardinal Robert Prevost has been elected as the new Pope yesterday (May 08) evening, Vatican time.

At 69, Cardinal Robert Prevost was elected as the 267th Pope, taking the name Pope Leo XIV.

He becomes the first American to ascend to the papacy in the 2,000-year history of the Catholic Church.

Pope Leo XIV now assumes spiritual leadership of the world’s 1.4 billion Catholics.

The election follows the death of His Holiness Pope Francis, who passed away on April 21 at the age of 88 at his residence in Casa Santa Marta, Vatican City, a day after participating in Easter Mass at St. Peter’s Basilica.

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Heavy rains expected in the afternoon

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The Department of Meteorology says that showers or thundershowers will occur at most places of the island after 1.00 p.m. today (May 09).

Showers may occur in Western province and in Puttalam, Galle and Matara districts in the morning too.

Fairly heavy rains above 50 mm are likely at some places in Western, Sabaragamuwa, Central, Northern and North-central provinces.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Misty conditions can be expected at some places in Sabaragamuwa, Central and Uva provinces and in Ampara and Polonnaruwa districts during the morning.

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