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Only USD 19.8bn will be restructured from domestic debt

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Only USD 19.8 billion will be allocated for restructuring out of the total domestic debt amount of USD 42.1 billion, President’s Senior Advisor on Economic Affairs Dr. R.H.S. Samaratunga said.

He said that following the government’s decision to seek support from the International Monetary Fund (IMF), a staff-level agreement was reached in September last year.

“However, the IMF said that the proposal cannot be implemented until Sri Lanka’s debt sustainability is established.”

“As a result, extensive discussions were held between the government and international creditors from September 1 to March 20. The primary objective was to obtain a financing certificate from these lenders, and we successfully completed this process in the second week of March. Consequently, by March 20, the IMF agreed to accept our request and proceed further.”

“This programme is designed to operate for a period of four years and consists of five key elements. Firstly, there is a focus on revenue-based fiscal consolidation, particularly due to the significant drop in the country’s gross domestic product to 8% in 2020-2021. This involves enhancing tax collection and addressing related issues.”

“Secondly, debt restructuring is a critical aspect as highlighted by the IMF, which has raised concerns about Sri Lanka’s debt sustainability. The third element pertains to establishing price stability within the country. Fourthly, it is crucial to preserve the stability of the financial sector. Lastly, the government needs to adopt an anti-corruption policy. These goals require the implementation of structural reforms.”

“With regard to these elements, the government has already implemented policies on various matters apart from debt restructuring.”

“The total domestic debt discussed today amounts to 42.1 billion US dollars, out of which 19.8 billion will be allocated for restructuring. This includes debt owed to the Central Bank of Sri Lanka, commercial banks, other banks, the Employees Provident Fund, and four other institutions that have provided loans to the government.”

“While debt restructuring among these institutions will occur through different methods, the ultimate aim is to provide the government with some relief through a mixed programme,” he said.

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US congratulates AKD on election win

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The United States has also congratulated President-elect Anura Kumara Dissanayake on his victory in the Sri Lankan presidential election.US State Department Spokesperson Matthew Miller said that the US commends the people of Sri Lanka for peacefully exercising their right to vote.

The statement notes :
The United States congratulates President-elect Anura Kumara Dissanayake on his victory in the Sri Lankan presidential election, as confirmed by the vote results on September 22. We commend the people of Sri Lanka for peacefully exercising their right to vote. This election is a testament to the strength of Sri Lanka’s democratic institutions and the commitment of its citizens to shaping their future through peaceful and democratic means.

The United States remains committed to supporting Sri Lanka as it builds a stable, prosperous, and cohesive society. We look forward to working with President-elect Anura Kumara Dissanayake to further strengthen our bilateral ties, which are based on shared democratic values and respect for national sovereignty. We also look forward to promoting economic growth, security, and deeper cooperation between our nations.

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UN urges SL’s creditors for fiscal space amid economic & human rights concerns

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The UN Human Rights Office has called on Sri Lanka’s creditors to provide the Government with the fiscal space needed to realize economic, social, and cultural rights.

UN Human Rights Chief Volker Türk in a new report said that economic policy decisions must align with Sri Lanka’s international human rights obligations.

He added that the ongoing effects of the 2022 economic crisis and subsequent austerity measures have particularly impacted the poor, especially women.

A report issued by the UN Human Rights Office has also identified renewed threats to fundamental freedoms in Sri Lanka, highlighting new or proposed regressive laws, erosion of democratic checks and balances, ongoing threats and intimidation against civil society and journalists, and the recurrence of serious human rights violations from the past.

UN Human Rights Chief Volker Türk emphasized the importance of the upcoming presidential and parliamentary elections as an opportunity for Sri Lanka to recommit to the transformational changes demanded by a broad cross-section of its citizens, including accountability and reconciliation.

The report points to several laws and bills introduced by the Government since 2023, which grant security forces broad powers and significantly expand restrictions on freedoms of expression, opinion, and association.

This trend is particularly concerning during the pre-election period, Türk noted.

Despite a promised moratorium, authorities have continued to use the Prevention of Terrorism Act to arrest and detain individuals. The report highlights recent cases of arbitrary arrests, detentions, torture, and deaths in custody.

Impunity and lack of accountability for crimes committed during and after the civil war, which ended in 2009, persist. Türk urged the newly elected Government to address the root causes of conflict and undertake fundamental constitutional and institutional reforms to close the accountability gap and work towards reconciliation.

The report also describes a long-standing pattern of intimidation and harassment of journalists and civil society actors, especially those working on enforced disappearances, land disputes, and environmental issues. Families of the forcibly disappeared face intimidation, arrest, and surveillance by security services in their attempts to seek the truth or commemorate their loved ones.

Türk emphasized that crimes and violations committed during and after the civil war, including the 2019 Easter Sunday bombings, must not go unpunished. He called for thorough investigations and accountability for those responsible.

In the absence of the Sri Lankan State’s willingness or ability to prosecute and punish perpetrators, the report urges the international community to pursue complementary strategies to support accountability in Sri Lanka. These strategies include the use of extraterritorial and universal jurisdiction, targeted sanctions against credibly alleged perpetrators, and other measures consistent with international law.

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

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SC annuls enforcing PCoI recommendations

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Supreme Court issued an order to annul the enforcement of recommendations made by the Presidential Commission of Inquiry (PCoI) tasked with investigating allegations of political victimisation.

The Presidential Commission of Inquiry was appointed by former President Gotabaya Rajapaksa and was led by retired Supreme Court Judge Upali Abeyratne.

Among the petitioners were Former DIG Ravi Senaviratne, retired High Court Judge Padmini Ranawaka, Sandya Eknaligoda, and the former Director of the Criminal Investigation Department, retired Senior Superintendent of Police Shani Abeysekera.

The petitions were heard before a three-judge bench consisting of Justices Vijith Malalgoda, Achala Wengappuli, and Arjuna Obeysekera.

In their verdict, the justices mandated the government to compensate the petitioners by covering the court fees amounting to one hundred and fifty thousand rupees each.
(News 1st)

(This story, originally published by News1st has not been edited by SLM staff)

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