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SL to secure likely 6-yr. moratorium on debt owed to India, Paris Club

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Sri Lanka is close to finalising a debt treatment plan with India and the Paris Club, sources familiar with the negotiations said, pointing to a likely moratorium of upto six years and a reduced interest rate during the repayment period.

“The discussions are at an advanced stage. A formal agreement on the terms can be expected very soon,” the Colombo-based source told The Hindu on Thursday, after a recent discussion among members of the Official Creditor Committee [OCC].

As many as 17 countries that have extended loans to Sri Lanka formed the Committee last year for ease of debt restructuring negotiations. China opted to stay out of the platform, but has been attending its meetings as an observer. Meanwhile, Colombo has repeatedly assured the OCC that it would negotiate repayment of Chinese loans on comparable terms.

Finalising agreements with the official creditors and reaching “in principle” agreements with the key private creditors would be “critical next steps” in Sri Lanka’s economic recovery plan, the International Monetary Fund (IMF) on Thursday. After defaulting on its nearly $ 50 billion external debt in April 2022, Sri Lanka has been engaging with its diverse lenders to work out a debt treatment plan that is compatible with its pace of recovery. While Colombo is said to have made considerable progress in negotiating a deal with its bilateral creditors, private creditors holding the largest chunk of Sri Lanka’s foreign debt continue to pose a challenge.

Meanwhile, Sri Lanka got a step closer to receiving the next instalment of the International Monetary Fund’s (IMF) assistance, as part of the $3 billion package it obtained last year, to recover from the unprecedented financial crash witnessed in the island nation in 2022. Authorities reached a staff-level agreement with the Fund on the second review of its four-year Extended Fund Facility (EFF) arrangement. Upon completion of the IMF Executive Board’s review, Sri Lanka would have access to about US$337 million, taking IMF assistance it has received so far to $1 billion, the Fund said in a statement.

Commending Sri Lankan authorities for “making good progress” in implementing an “ambitious” reform agenda, IMF officials told a media gathering in Colombo that the government had shown “commendable outcomes”, in curtailing inflation, ensuring reserve accumulation, and strengthening public finances.

(The Hindu)

(Except for the headline, this story, originally published by ‘The Hindu’, has not been edited by SLM staff)

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Passengers jump from plane’s wing after fire alert on Spain flight, triggers panic

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Wildfires have broken out on an island and in towns near Athens in Greece, with blazes also being sparked in Turkey and Syria.

The Hellenic Fire Service and local authorities said that two villages – Tsakeoi and Limnionas – had been evacuated on the island of Evia after the blaze started late on Friday.

One fire service official said more than 160 firefighters, 46 trucks and five aircraft were deployed in southern Evia to put out the fire.

Southern Evia, to the east of Athens, was one of several regions in Greece placed on high alert for wildfires over gale-force winds forecast for today.

Images from Koropi, a town to the southwest of Athens, also show houses burnt down and helicopters dropping water on burning forests.

It marks the latest wildfires to break out in Greece – where blazes are common during the summer – as it tackles strong winds and dry conditions amid an early summer heatwave in southern Europe.

Officials have linked the conditions to at least nine deaths across the continent.

A wildfire broke out in Achlia on the island of Crete on Wednesday, forcing thousands of residents and tourists to evacuate – with some taken to a nearby basketball arena and hotels in safer parts of the island.

The fire service official told Reuters on Friday that the fire in Crete was largely contained.

Meanwhile, blazes have also broken out on Turkey’s west coast – the latest in a series of blazes which started in late June – as well as its southerly neighbour Syria.

At least five fires have been reported in Izmir after extreme heat, strong winds and low humidity. Two people have been killed by the blazes, while tens of thousands have been evacuated.

Fires also flared on both sides of the Turkish-Syrian border on Friday, with a new blaze reported near the town of Dortyol in Turkey’s border province of Hatay.

According to Syria’s Civil Defence, wildfires have spread across large parts of mountainous areas in the Latakia province.

The government department added that conditions have hampered efforts to bring the fire under control, and noted unexploded ordnance could be in some of the areas affected.

Source: SKY NEWS

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CBSL extends Perpetual Treasuries suspension for six months

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The Central Bank of Sri Lanka (CBSL) has decided to extend the suspension of Perpetual Treasuries Limited (PTL) from carrying on the business and activities of a Primary Dealer for a further period of six months.

The extension is with effect from 4.30 p.m. on 05th July 2025, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.

The suspension has been extended by CBSL acting in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance.

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Kataragama Basnayake Nilame pressured over complaint against Kapuwas’ donation misuse

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It has been reported that Dishan Wickramaratne Gunasekara – the Basnayake Nilame of the historic Ruhunu Kataragama Maha Devalaya, is facing pressure including from several parties including political circles to withdraw his complaint lodged against the custodians (Kapu Mahattaya) of the devalaya.

The issue had arisen after it was discovered that some custodians were collecting money into their own tills instead of allowing them to be deposited in the official donation box.

Public discussion about the transparency of the temple’s donations intensified after the Basnayake Nilame had begun using a portion of the funds for community projects like hospital construction.

Traditionally, devotees often handed donations directly to the custodians, but the Basnayake Nilame had urged the public via media to place offerings only in the official donation box managed by the Ministry of Buddha Sasana, Religious and Cultural Affairs.

He subsequently arranged a proper audit of all such donations for the first time.

In response, some custodians had reportedly begun pressuring devotees near the official box to hand over donations to them instead.

Upon learning of this, the Basnayake Nilame had lodged a complaint with the Kataragama Police, arguing that diverting funds from the official box amounts to fraudulent misappropriation.

Acting on the complaint, police arrested 02 custodians who were collecting offerings near the official box.

However, other custodians then surrounded the police station and pressured the officers to release the arrested individuals, resulting in their release.

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