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Sri Lanka seeks loan repayment moratorium in ongoing debt restructuring talks

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Sri Lanka is seeking a loan repayment moratorium for its US$ 12 billion bilateral debts until 2028 during the ongoing talks in London with bondholders on debt restructuring as the country still grapples to emerge from the economic crisis, a Finance Ministry top official divulged.

A bondholders steering committee is expected to reach an agreement or sign a memorandum of understanding considering a proposal from the government to rework the overseas debt that has been in default since 2022.

The government is asking lenders to accept a plan to defer payments for five years and then pay down the debts from the beginning of 2028 through 2042, the top official said.

China has expressed willingness to continue supporting its financial institutions to actively negotiate with Sri Lanka, maintain close communication with other creditors in the International Monetary Fund, and assist Sri Lanka in financial relief, China’s foreign ministry said in a joint bilateral statement (with Sri Lanka) on Friday.

This statement was issued following the conclusion of Prime Minister Dinesh Gunawardena’s visit to China, where he discussed finalising a debt restructuring deal on the instructions of President Ranil Wickremesinghe.

The two countries also signed nine new agreements amid Sri Lanka’s efforts to restructure and revive its economy.

Finance State Minister Shehan Semasinghe, who accompanied the Prime Minister, noted that Sri Lanka reached an agreement in principle with the EXIM Bank of China, and it could be extended further this year.

China’s Exim Bank had agreed to extend the US$4.5 billion debt servicing for two years starting in 2022 as an immediate contingency measure based on Sri Lanka’s request.

Sri Lanka’s largest bilateral debtors, China with $4.6 billion and India with $1.37 billion, are outside of the Paris Club.

India has already decided to go along with the Paris Club, but China does not want to get onto that platform.

China has given loans to several other countries in the world amounting to around $600 billion, and therefore it cannot consider Sri Lanka for preferential debt treatment, officials said.

Chinese authorities have already informed the government to resume the debt repayment from April 2024, and thereafter they can consider extending some relief.

Sri Lanka’s external debt stock stood at US$ 37.3 billion as of December 2023, bilateral debt at US$ 10.8 billion, multilateral debt at US$ 10.84 billion, and commercial loans at US$ 14.74 billion.

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

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AG seeks CID probe into social media smear campaign against his staff

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The Criminal Investigation Department (CID) has opened a probe following a complaint by Attorney General Parinda Ranasinghe that his staff have been unduly targeted by false allegations on social media.

The AG’s instruction to the CID came after several of his staff complained to him over the allegation on social media.

Particularly targeted are senior AG’s Department officials awaiting promotions, sources said.

In one of the posts, a senior officer was accused of being supportive of granting bail to Thamil Makkal Viduthal Puligal (TMVP) leader Sivanesathurai Chandrakanthan, alias Pillaiyan, when his fundamental rights application over his arrest was taken up. During the hearing of the FR case, the matter of bail was not even considered, the sources said.

Another allegation was that in a case related to the suspended Police Chief Deshabandu Tennakoon, the AG prevented a senior officer from representing the department and instead sent a junior officer. However, on the particular day, the senior officer was indisposed, the sources said.

These allegations surface as the AG’s Department has filed more than 600 new indictments in High Courts so far this year, while the Bribery Commission has also referred several bribery and corruption cases to the AG for prosecution.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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19-yr. old dies after falling from elevator

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A 19-year-old youth has died after falling from a service elevator at a hotel in the Pannai area, in the Jaffna Police Division.

According to the police, the incident had occurred last night (June 21) and the deceased has been identified as a resident of Nirveli, Jaffna.

According to investigations, the youth was employed at the hotel and had been using the service elevator -intended for transporting goods.

Further investigations are underway.

This incident follows a similar case recently reported from a hotel in Moratuwa last week.

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Deputy Foreign Minister addresses 6th CSACF in Kunming

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Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra participated at the 9th China-South Asia Exposition and the 6th China-South Asia Cooperation Forum (CSACF), held from 18 to 21 June 2025 in Kunming, Yunnan Province, China. This year’s Exposition held particular significance for Sri Lanka as it was featured as the Theme Country of the exposition.

Addressing the opening ceremony of the 6th China-South Asia Cooperation Forum, Deputy Minister Hemachandra emphasized the importance of regional unity and shared progress, a crucial factor for South Asia, with its demographic strength and strategic location, increasing share of global trade, and cultural and intellectual assets. He invited investors and partners from China and South Asia to explore opportunities in key sectors, including infrastructure, technology, green energy, agriculture, tourism and manufacturing.  

On 20 June 2025, the Deputy Minister held bilateral discussions with the Vice Governor of Yunnan Province, where future collaboration in areas such as processed food, apparel, agriculture, and tourism were explored. He expressed Sri Lanka’s interest in technical assistance and knowledge exchange, including opportunities for Sri Lankan entrepreneurs to gain exposure to Yunnan’s expertise in the cut flower industry, a sector in which the province is globally recognized as the ‘Kingdom of Flora and Fauna’.

The Sri Lanka Theme Pavilion was officially inaugurated on 19 June 2025 at the Kunming Dianchi International Convention and Exhibition Center by Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe. Minister Samarasinghe also delivered the keynote address at the opening ceremony.  

Sri Lanka’s presence at the Exposition showcased a vibrant display of its economic strengths and cultural heritage. A wide range of high-value exports and services were exhibited including gems and jewellery, Ceylon Tea, coconut-based products and fiber, spices, organic and wellness products, handicrafts, batiks, confectionery, and processed foods. Sri Lanka’s participation aimed to strengthen trade ties, enhance export potential, and increase market access for Sri Lankan businesses in China and South Asia.

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