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SL – Paris Club official creditors reach preliminary debt deal

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Sri Lanka and the official creditor committee has agreed on a debt restructuring deal, the Paris Club Secretariat said.
“The OCC and Sri Lanka agreed on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF,” the statement said.

“This agreement will allow the IMF staff to present to the IMF Executive Board the first review of Sri Lanka’s EFF arrangement and open the way for approval of the second disbursement under the arrangement

“The OCC also expects that the Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC”

The full statement notes :

STATEMENT
AGREEMENT IN PRINCIPLE BETWEEN THE OFFICIAL CREDITOR COMMITTEE AND SRI LANKA ON A DEBT RESTRUCTURING
November 29, 2023 

Following the launch event in April 2023, 17 countries formally formed, on May 9, an Official Creditor Committee (OCC) co-chaired by India, Japan and France (as chair of the Paris Club) to respond to the Sri Lankan authorities’ request for a debt treatment. The committee includes India and Hungary in addition to Paris Club creditors. Since then, the OCC has engaged extensively with the Sri Lankan authorities, the IMF, the World Bank as well as China, and Sri Lanka’s private creditors.

The OCC and Sri Lanka agreed on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF. This agreement will allow the IMF staff to present to the IMF Executive Board the first review of Sri Lanka’s EFF arrangement and open the way for approval of the second disbursement under the arrangement. The OCC commends the Sri Lankan authorities for their continuous efforts in implementing the reforms necessary for their country’s return to a sustainable path.

The OCC stands ready and looks forward to formalizing this agreement in the coming weeks in a Memorandum of Understanding with the Sri Lankan authorities. The OCC expects other bilateral creditors to consent to sharing, in a transparent manner, the information necessary for the OCC to evaluate comparability of treatment regarding their own bilateral agreement. The OCC also expects that the Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC.

These engagements will ensure that the overall debt treatment granted to Sri Lanka is consistent with the IMF program parameters.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries. The members of the Paris Club which are part of the Official Creditor Committee are representatives of countries with eligible claims on Sri Lanka: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, the United States of America.

2. Representatives of the International Monetary Fund and the Word Bank as well as China attend the OCC meetings. Other observers include the Asian Development Bank, Saudi Arabia and Iran.

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Joe Biden diagnosed with aggressive prostate cancer

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Former US President Joe Biden, 82, has been diagnosed with prostate cancer that has spread to his bones, a statement from his office said on Sunday.

Biden, who left office in January, was diagnosed on Friday after he saw a doctor last week for urinary symptoms.

The cancer is a more aggressive form of the disease, characterised by a Gleason score of 9 out of 10. This means his illness is classified as “high-grade” and the cancer cells could spread quickly, according to Cancer Research UK.

Biden and his family are said to be reviewing treatment options. His office added that the cancer was hormone-sensitive, meaning it could likely be managed.

In Sunday’s statement, Biden’s office said: “Last week, President Joe Biden was seen for a new finding of a prostate nodule after experiencing increasing urinary symptoms.

“On Friday, he was diagnosed with prostate cancer, characterised by a Gleason score of 9 (Grade Group 5) with metastasis to the bone.

“While this represents a more aggressive form of the disease, the cancer appears to be hormone-sensitive which allows for effective management.”

After news broke of his diagnosis, the former president received support from both sides of the aisle.

President Donald Trump wrote on his social media platform Truth Social that he and First Lady Melania Trump were “saddened to hear about Joe Biden’s recent medical diagnosis”.

“We extend our warmest and best wishes to Jill and the family,” he said, referring to former First Lady Jill Biden. “We wish Joe a fast and successful recovery.”

Former Vice-President Kamala Harris, who served under Biden, wrote on X that she and her husband Doug Emhoff are keeping the Biden family in their prayers.

“Joe is a fighter – and I know he will face this challenge with the same strength, resilience, and optimism that have always defined his life and leadership,” Harris said.

In a post on X, Barack Obama – who served as president from 2009 to 2017 with Joe Biden as his deputy – said that he and his wife Michelle were “thinking of the entire Biden family”.

“Nobody has done more to find breakthrough treatments for cancer in all its forms than Joe, and I am certain he will fight this challenge with his trademark resolve and grace. We pray for a fast and full recovery,” Obama said. In 2016, Obama tasked Biden with leading a “cancer moonshot” government-wide research programme.

(BBC News)

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Special traffic plan during 16th War Heroes’ Commemoration today 

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The 16th National War Heroes’ commemoration ceremony will be held today (May 19) at the National War Hero Cenotaph in Sri Jayawardhanapura under the patronage of President Anura Kumara Dissanayake.

The commemoration event is scheduled to begin at 4.00 pm.

Parallel to the event, a special traffic plan will be implemented in and around the Battaramulla area, according to the Sri Lanka Police.

Authorities have emphasized that no road closures will be enforced.

However, in the event of traffic congestion, movement along Parliament Road – from Polduwa Junction to Kiyayam Junction via Jayanthipura – may be restricted for vehicles traveling to and from Colombo.

To minimize inconvenience, the police have issued the following alternative routes:

For vehicles exiting Colombo: Travel from Polduwa Junction to Battaramulla Junction, then proceed from Palam Thuna Junction to Kiyayam Junction.

For vehicles entering Colombo: Travel from Kiyayam Junction to Palam Thuna Junction, then proceed to Battaramulla Junction and continue to Colombo via Polduwa Junction.

Motorists are advised to follow police instructions and use the designated alternative routes to avoid delays during the commemorative events.

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Nalinda departs for Switzerland to attend WHO assembly

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Minister of Health and Mass Media Dr. Nalinda Jayatissa left for Switzerland yesterday (May 18) to attend the 78th World Health Assembly (WHA78) organized by the World Health Organization (WHO).  

The assembly will be held in Geneva, Switzerland from May 19 – 27 under the theme – “One World for Health”.

Health ministers from all WHO member states, along with over 5,000 delegates representing global health sectors, are expected to attend the assembly.

It’s reported that this will feature wide-ranging discussions with representatives from various countries, during which proposals, ideas, and research data will be reviewed to make key decisions and formulate plans to improve global health conditions in the coming year.

In addition to the Minister of Health, the Sri Lankan delegation to the WHA78 includes the Health Ministry Secretary – Dr. Anil Jasinghe, Sri Lanka’s Permanent Representative to the UN in Geneva – Himali Arunathilaka, and the mission’s First Secretary – Nishanthini Victor.

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