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IMF loan depends on decisions of India & China?

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It is reported that the International Monetary Fund (IMF) has already informed Sri Lanka that it cannot release the $2.9 billion loan to Sri Lanka without restructuring previous debt with China and India, two of Sri Lanka’s main creditors.

In the meantime, it is reported that China and India have called to sign two Free Trade Agreements (FTAs) with Sri Lanka before restructuring the debts.

Sources say that during an initial exchange of views with China, Sri Lanka has been informed that a FTA should be signed before restructuring the debt. Noting that a similar agreement has been signed with India in 1998, China is of the opinion that an equal opportunity is only fair.

Meanwhile, sources add that India has also informed Sri Lanka that the Economic and Technology Cooperation Agreement (ETCA) agreement, which would ensure Indian investments and service supply ventures being exempted from taxes, should be finalized before the debt restructuring talks.

It is learnt that neither China or India will participate in debt restructuring talks until these two pacts are finalized, which will in return, lead to a delay in the IMF loans.

Fabrication

Upon contacting the Chinese embassy in this regard, an embassy spokesman rejected the report as “a mere fabrication.”

Speaking to ‘Sri Lanka Mirror’, he said that “the ministries of Finance from China and Sri Lanka as well as the relevant financial institutes have been maintaining good communication.”

“Very recently, President Ranil Wickremesinghe, in his capacity as Financial Minister, had a virtual meeting with Chinese Minister of Finance Liu Kun. According to the PMD, the President had expressed his appreciation towards China and was optimistic on the process,” he further said.

Mutually beneficial

Meanwhile, informed official sources stated to ‘Sri Lanka Mirror’ that the ETCA, which paves way for stronger economic partnership between India and Sri Lanka, has been a matter under discussion between the two countries for several years now. 11 rounds of negotiations took place between the two countries till 2018 and clearly ETCA is not something that really popped up just now.

“The existing FTA benefits  60% – 65% of Sri Lanka’s exporters to India as opposed to around 5% of India’s exporters to Sri Lanka. But just as the country’s economies are different and asymmetrical, some asymmetries may exist and this was already factored in when the FTA was signed. Similarly for ETCA, the two sides could sit together and work out the finer details for ensuring a mutually beneficial agreement,” the source added.

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President calls for unified environment, climate change law

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President Ranil Wickremesinghe emphasized on-going efforts to enact unified legislation addressing environmental protection and climate change. He highlighted the government’s commitment to crafting economic policies geared not only towards fostering export-oriented competitiveness but also towards transitioning to a green economy, aiming to achieve net-zero by 2050. 

Acknowledging the recent prolonged spells of extreme climate conditions as indicative of future climate change impacts, the President stressed the urgency of addressing climate mitigation measures promptly. 
He made these remarks while addressing the inaugural session of the Sri Lanka Climate Summit which commenced yesterday (07) at the Shangri-La, Colombo.

The inaugural Sri Lankan Climate Change Conference, hosted by the Sri Lanka Chamber of Commerce, commenced yesterday under the theme “Climate Action for our Nation and the Planet.” Scheduled to run until May 09, the summit aims to foster a comprehensive understanding of the multifaceted climate crisis, both from a global and national standpoint. It seeks to assess potential disruptions to critical sectors of the economy and deliberate on policy reforms necessary for transitioning towards a low-emission, climate-resilient economic framework.

During his address, President Wickremesinghe highlighted the nation’s proactive approach to combating climate change. He announced the establishment of a dedicated climate change centre in Sri Lanka and his instructions to the officials to model legislation based on the United Kingdom’s Climate Act, endorsed by global financial institutions. The President emphasized the significance of Sri Lanka’s role in addressing climate change, particularly within the Indian Ocean and the tropical belt and outlined plans for the International Climate Change University to be established in the country.

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2100 Grama Niladhari officers given appointments

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President Ranil Wickremesinghe stressed that the enhancement of the rural economy pivots on agricultural advancement. He highlighted the pivotal role of dedicated government officials at the grassroots level in ensuring the success of various government initiatives aimed at rural development, notably the agricultural modernization program. 

The President made these remarks during his address at the ceremony held at the Temple Trees today (08), where 2100 new Grama Niladhari officers were awarded appointment letters.

Following the Grama Niladhari Service Examination held by the Department of Examinations on 02nd December, 2023, 2100 candidates with the highest scores at the Divisional Secretariat Divisional Level were granted Grama Niladhari positions. 

President Ranil Wickremesinghe participated symbolically in distributing the appointment letters. He briefed the new GN Officers on government initiatives like “Aswesuma” and “Urumaya”, aimed at uplifting low-income individuals, urging them to actively engage in these programs for the economic development of their communities.

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CoPF summons Public Security Secretary & Immigration CG

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The Committee of Public Finance (CoPF) has summoned the Secretary of the Public Security ministry and the Controller General of Immigration tomorrow (May 09) for a ‘balanced inquiry in to the ongoing visa fiasco’, the CoPF Chairman – Dr. Harsha de Silva has said.

“While it is customary for all public finance related legislation be routed through COPF, this strangely was not,” he has added on X.

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