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Govt. expects to finalize foreign debt restructuring process by June – Sabry

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Minister of Foreign Affairs, Ali Sabry, announced the government’s expectation to finalize the foreign debt restructuring process by June. If successful, this endeavour could lead to a reduction of approximately US $17 billion of Sri Lanka’s debt burden.

He also said that the primary focus is on navigating the challenge of debt restructuring. The initial phase of domestic debt restructuring has been completed, with attention now turned to foreign debt restructuring. Negotiations with private investors linked to sovereign bonds aim to finalize this phase by June, with a targeted completion before June 2024. Successful restructuring could result in a $17 billion advantage for Sri Lanka, potentially reducing debt burden through various means. These efforts will also facilitate the continuation of developmental activities within the country.

Minister of Foreign Affairs Ali Sabry made these remarks while attending the ‘Collective Path to a Stable Country’ press briefing held at the Presidential Media Centre (PMC) this morning (08). He gave a brief overview of the recent foreign policy decisions, the foreign relations and the high-level visits the Sri Lankan government has undertaken, particularly the recent visit of the Japanese Foreign Minister and the visit of the Iranian President.

The Minister also emphasized that Sri Lanka’s adherence to a non-aligned foreign policy, coupled with its commitment to maintaining relations with all nations while safeguarding its sovereignty, has resulted in numerous concessions for the country.

Minister Ali Sabry further highlighted the government’s endeavours to garner support for Sri Lanka’s economic development by fostering strong ties with both China and India.

Minister Ali Sabry, also reiterated:

“Sri Lanka prides itself on upholding an independent foreign policy, which doesn’t mean isolation but rather engaging with all nations—a concept known as non-alignment. Our commitment lies in maintaining this legacy of non-alignment, independence, and the sovereignty of our Parliament and state. Hence, it’s crucial for us to collaborate with both Eastern and Western nations, nurturing closer ties with our allies.

Over time, we’ve cultivated strong relationships with Western and Eastern countries, as well as our neighbours, which have proven invaluable in overcoming economic challenges.

Securing support from major partners and creditors, including the U.S., France, India and China, was pivotal during negotiations with the IMF. We’ve made progress in debt restructuring, gaining the backing of the Official Creditor Committee and comprising nations like India, Japan and the Paris Club. Our aim is to conclude debt restructuring by the end of June, with the support of all major players. This includes finalizing agreements with China. Once debt restructuring is achieved, mainly the external debt restructuring, we can focus on fostering economic growth through partnerships with various parties. Our on-going engagement with China, evident through visits by the President, Prime Minister, and myself, underscores our commitment to this approach.

Currently, our primary focus lies in effectively navigating the challenge of debt restructuring. We have successfully completed the initial phase, addressing domestic debt restructuring. Moving forward, our attention turns to the next crucial steps, particularly foreign debt restructuring. Our aim is to diligently negotiate and finalize this phase by the end of June, specifically engaging with private investors associated with sovereign bonds. The government is determined to achieve this milestone before June 2024.

Upon successful completion, Sri Lanka stands to gain a significant advantage of US $17 billion throughout the entire restructuring process. This advantage may manifest in various forms, including reductions in principal amounts, interest payments, or extended repayment timelines. Such restructuring efforts hold the potential to alleviate our debt burden by US $17 billion. Simultaneously, these endeavours will pave the way for the continuation of developmental activities within the country at the earliest opportunity.

The Prime Minister’s recent visit to China, where we signed nine MoUs, reflects our on-going efforts to strengthen ties. Particularly with India, a considerable progress has been made in our collaboration with India, with significant Indian investments currently underway. Additionally, the recent approval by the Cabinet of tariffs and Power Purchase Agreements with the Adani Group at US $0.08 per unit is a notable development.

As the Ministry of Foreign Affairs, we adhere strictly to international rules and regulations in our interactions with foreign countries. Consequently, the visit of the Iranian President to Sri Lanka raised no concerns within the international community. In parallel, we’re actively seeking to attract more investors, as demonstrated by the successful visit of the Iranian President, which led to the inauguration of the Uma Oya project contributing 120 megawatts to our energy grid. Furthermore, we anticipate increased tourism from the region with news of Mahan Air, the Iranian airline, expressing interest in flying to Sri Lanka.

In recent developments, the visit of the Japanese Foreign Minister to Sri Lanka marked an important milestone. Japan has pledged its moral support and endorsed the Sri Lanka’s economic reforms. During discussions, Japan officially encouraged and praised the bold economic reforms that the Sri Lankan government is undertaking and affirmed its commitment to restarting stalled projects. This collaboration with our partners is pivotal in driving our economic agenda forward and fostering development.

Saudi Arabia has shown a keen interest in investing in Sri Lanka. Notably, Middle Eastern nations are actively seeking to diversify their economies away from fuel dependency and are exploring investment opportunities abroad. We are diligently working to capitalize on these opportunities for the benefit of Sri Lanka.

To position Sri Lanka as a premier tourist destination, we must shift our focus away from visa fees. Instead, we should consider offering free visas to citizens of approximately fifty countries. Such a move could ignite excitement within the tourism sector and bolster visitor numbers.

Furthermore, diplomatic initiatives are currently in progress to retrieve Sri Lankans detained by smugglers in Myanmar and to protect our youth enlisted in mercenary forces linked to the Russia-Ukraine conflict. These issues have also been addressed with Russian security authorities.

(President’s Media Division)

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UK’s relaxed trade rules to boost SL exports

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The Government of the United Kingdom (UK) has unveiled a package of reforms to simplify imports from developing countries like Sri Lanka after upgrades to the Developing Countries Trading Scheme (DCTS).

The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries, including Sri Lanka, while helping UK businesses and consumers access high-quality, affordable goods.

New measures include simplifying rules of origin, enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines can enter the UK tariff-free, even when using components from across Asia and Africa.

These changes are expected to be in place by early 2026.

This move strengthens Sri Lanka’s position in its second-largest apparel market, supporting exports, jobs, and economic growth.

The British High Commissioner to Sri Lanka, Andrew Patrick, said: “This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement.

“We want Sri Lanka to improve the utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the Sri Lankan government’s ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS. The UK remains committed to working towards creating shared prosperity for both our countries.”

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Pakistan police arrest 149 including 2 Lankans in ‘scam call centre’ raid

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Pakistan police have arrested 149 people in a raid on a scam call centre, the country’s National Cyber Crime Investigation Agency (NCCIA) said on Thursday.

The agency told the BBC it acted after a tip-off about the network, which was operating in the city of Faisalabad.

It said the centre was involved in Ponzi schemes and tricked people into handing over vast sums of money in the name of fake investments.

Those arrested included 78 Pakistanis, 48 Chinese nationals, eight Nigerians, four Filipinos, two Sri Lankans, six Bangladeshis, two Myanmar nationals and one Zimbabwean national.
Eighteen of the 149 were women, the agency added.

A copy of a police report said victims of the alleged scam would initially receive a small return on their first investments, before being persuaded to hand over larger sums of money.

“The charged individuals ran WhatsApp groups where they lured ordinary people by assigning small investment tasks like subscribing to different TikTok and YouTube channels,” the agency said.

“Later, they shifted them to Telegram links for further online tasks requiring larger investments.”

Pakistani citizen Muhammad Sajid told BBC Urdu that he was added to a Telegram channel with tens of thousands of members and was impressed by the company’s work. He said he gave them more than 3.138 million rupees ($36,600) in various instalments.

The raid, which took place on Tuesday, saw authorities seize hundreds of computers, servers, cryptocurrency exchanges and foreign SIM cards from the site.

On Wednesday, 149 suspects appeared in court, 87 of whom were handed over to the NCCIA on a five-day physical remand.

A further 62 suspects have been transferred to the district jail on judicial remand until 23 July.

The agency said the raid was at the residence of Malik Tehseen Awan, the former head of Faisalabad’s power grid, who has not been arrested.

(BBC News)

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Milk tea price upped by Rs. 10

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The All Island Canteen and Restaurant Owners’ Association has announced a Rs. 10 increase in the price of a cup of milk tea.

Association President Harshana Rukshan stated that the decision was made in response to the recent rise in the price of imported milk powder.

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