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IMF ready to support Sri Lanka’s discussions with bondholders

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The International Monetary Fund (IMF) stands ready to support Sri Lanka’s discussions with international bondholders and will provide a formal assessment after the parties reach a tentative agreement-in-principle, an IMF spokesperson said on Thursday.

“We hope an agreement consistent with the parameters of the IMF-supported program and official creditors’ Comparability of Treatment requirements can be reached soon, ahead of completing the second review under the program,” the spokesperson said.

Sri Lanka said it failed to reach an agreement with bondholders to restructure about $12 billion debt earlier this week, raising concerns there could be a delay in the island nation receiving a third tranche of its $2.9 billion IMF program in June.

The government said one of the main stumbling blocks had been that the “baseline parameters” of the bondholders’ plan had not matched those embedded in its IMF program.

“We encourage both parties to continue their discussions swiftly,” the IMF statement added.

Sri Lanka will consult with the IMF to assess if the latest proposals discussed with bondholders were within the parameters of its bailout program.
The island nation defaulted on its foreign debt in May 2022 and kicked off negotiations with bilateral creditors several months later, eventually securing an agreement in principle with China, India and the Paris Club last November.

Sri Lanka plunged into its worst financial crisis since independence from the British in 1948 after its foreign exchange reserves fell to record lows in early 2022, leaving it unable to pay for essentials including fuel, cooking gas, and medicine.

(Reuters) 

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19-yr.-old dies after hotel elevator collapses

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Moratuwa Police launched an investigation after a 19-year-old youth had died after an electric elevator at a hotel collapsed on June 14.

The deceased is a resident of Arukgoda in Panadura, and was an employee at the Bolgoda Hotel in Moratuwa.

According to reports, the elevator, which was reportedly designated solely for the use of hotel employees, had given away when the youth was inside, injuring him critically. He was rushed to the Panadura Base Hospital but was pronounced dead upon admission.

The management of the hotel has lodged a complaint with the Moratuwa Police regarding the incident. Further investigations are underway to determine the exact cause of the elevator collapse.

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Assets over Rs. 4 bn. of 88 individuals frozen

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Assets worth over Rs.4 billion belonging to 88 individuals who have accumulated wealth through illegal activities, including drug trafficking, have been frozen by the Illegal Assets Investigation Division, data from the Criminal Investigation Department (CID) shows.

The frozen assets include more than 77 large land plots totalling over 1,500 perches, more than 40 houses and buildings, 12 gemstones, over 10 kilogrammes of gold, a supermarket, a pharmacy, two hotels, a soap manufacturing machine, over 100 vehicles, seven multi-day fishing vessels, 328 bicycles, and two vallam boats.

The assets of 26 major underworld drug traffickers are among those frozen. The largest volume of assets frozen, preventing sale or transfer, belongs to an individual known as Dematagoda Ruwan, who is the brother of Dematagoda Chaminda, a known underworld figure.

According to the Illegal Assets Investigation Division, the total value of assets frozen under Dematagoda Ruwan’s name stands at Rs.666.9 million. These include five bank accounts holding Rs 90 million, two land plots worth Rs.380 million, 10 vehicles valued at Rs.200 million, 1.5 kilogrammes of gold worth over Rs.20 million, two houses worth over Rs.40 million, and pawned items valued at more than Rs.10 million.

The list of those whose assets have been frozen includes many prominent underworld drug figures such as Kudu Salindu, Kudu Roshan, Mohamed Rifkan, Weliwita Suda, Karandeniya Sudda, Ganemulla Sanjeewa, Ladiya, Kevuma, Batuwatte Chamara, Basiq, Olumara, Bathala Heen, Parei Sudda, and Kirinde Chamara, among others.

The division’s information reveals that the assets of these individuals have now been officially frozen. Bathala Heen, a well-known cannabis trafficker, recently had Rs.100 million worth of assets frozen, while last week an additional Rs.30 million worth of assets under his wife’s name were also frozen.

Many of these underworld drug traffickers whose assets have been frozen are currently overseas, and much of the property is registered under the names of their relatives. These asset freezes are the result of investigations ongoing since 2021. A senior Police officer stated that further investigations will be carried out into the assets of a large number of other individuals, and that necessary steps will be taken to freeze those assets as well.

(dailynews.lk)

(Except for the headline, this story, originally published by dailynews.lk has not been edited by SLM staff)

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Decisive CMC sitting to be held today

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The newly elected Colombo Municipal Council (CMC) will convene its inaugural meeting today (June 16) at 9:30 am at the Town Hall in Colombo.

The gazette extraordinary in this regard was issued by the Commissioner of the Department of Local Government of the Western Province, Sarangika Jayasundara.

Today’s agenda chiefly aims to elect a new Mayor and Deputy Mayor through a ballot of the 117 councilors as no party managed to secure a  clear majority in the recently concluded Local Government election.

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