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US wants SL Bondholder lawsuit be put on hold

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The US Government has said a bondholder’s lawsuit filed against Sri Lanka over its historic debt default should be put on hold.

In a statement of interest filed yesterday (2) in New York Federal Court, the US backed the Sri Lankan Government’s request to delay a lawsuit by Hamilton Reserve Bank Ltd. seeking full payment and accrued interest on more than USD 250 million in bonds that came due in July 2022.

The US said the delay would help with ongoing restructuring talks between Sri Lanka and other creditors.

Sri Lanka fell into default in May 2022 after the expiration of a 30-day grace period for missed interest payments on two of its sovereign bonds, the first debt default by the country since it gained independence in 1948. Hamilton Bank sued Sri Lanka in July 2022.

Sri Lanka in July asked US District Judge Denise Cote to put the case on hold for six months. Cote had put her decision on hold until the US decided whether or not to file a statement of interest. 

The French and UK Governments previously asked the court to put the suit on hold.

The two countries said in a Sept. 6 letter that they were writing as members of the Paris Club, an informal group of official creditors that help coordinate repayments for struggling debtor nations.

They said delaying the case was “key to ensuring the success of the International Monetary Fund (IMF) supported assistance programme” for the nation.

Sri Lanka recently announced the completion of its local debt restructuring plan and is now engaging with other holders of Sri Lanka’s foreign debt, including China and India.

Hamilton Reserve has opposed the bid to postpone the proceedings, saying that putting them on hold “would be both contrary to US policy interests and an exercise in futility.”

The case is Hamilton Reserve Bank v. Sri Lanka, 22-cv-5199, US District Court, Southern District of New York (Manhattan).

(Bloomberg)

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Names of Mayors and Chairpersons of several LG bodies gazetted

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A gazette extraordinary has been issued containing the names of Mayors, Deputy Mayors, Chairpersons, and Vice-Chairpersons of several local government institutions.

The names have been gazetted based on recommendations sent to the National Election by political parties and independents groups that secured a majority in local government bodies at the recently concluded Local Government (LG) election.    

Accordingly, the Election Commission has taken steps to publish the names from among the political parties and independent groups that secured a majority at the Local Government election held recently.

The names of the elected and nominated members for the respective local authorities, following the Local Government election were also published in the government gazette based on the respective administrative districts.

As per the gazette notification issued by the Minister of Public Administration, Provincial Councils, and Local Government on February 17, 2025, the term of office of local government bodies is scheduled to commence on June 2, 2025

පළාත් පාලන ආයතනවල සභාපතිවරුන්ගේ නම් ඇතුළත් ගැසට් පත්‍රය නිකුත් කෙරේ by poornima

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Weather Alert: Showers to ease in Southwest, strong winds forecast in North

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Prevailing showery condition in the southwestern part of the island is expected to reduced gradually from today (01st)

Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central and North-western provinces and in Galle and Matara districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts during the afternoon or night.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Hambantota and Trincomalee districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

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Aluthgamage and Fernando assigned printing work in prison

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Former Minister Mahindananda Aluthgamage and former Sathosa Chairman Nalin Fernando, sentenced this week to jail for 20 and 25 years, respectively, have been assigned duties in the printing section at the Welikada prison, sources said.

Both of them are being held together away from the main section of the prison’s ‘chapel’ section, where prisoners serving life sentences and those convicted of murder and rape are held. The prison’s printing section prints its own documentation.

Prison sources said that in placing them in relevant wards to serve their jail term, the authorities had taken into consideration the security of the two convicts, as they might have had political enemies.

Mr Aluthgamage was handed a 20-year term of rigorous imprisonment, while Mr Fernando was given a 25-year term of rigorous imprisonment by a High Court trial-at-bar after being found guilty of causing a Rs 53 million loss to the state.

They were accused of importing carrom boards and checkers boards through Sathosa during the 2015 presidential elections and distributing them to clubs.

Their lawyers said yesterday they were awaiting the certified copy of the judgement to prepare the appeal papers. The appeal will be considered by the Supreme Court.

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

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