Page 21 - Sri Lanka

Stalin writes to EAM to secure release of detained fishermen in Sri Lanka

'I would like to draw your attention to the apprehension of 12 fishermen and three fishing boats by the Sri Lankan Navy on January 13,' CM Stalin stated in the letter

Japan awaits Sri Lanka's debt restructuring to resume stalled projects

The visiting Japanese Finance Minister Suzuki Shunichi on Friday expressed hope that the ongoing debt restructuring in cash-strapped Sri Lanka could be finalised soon for Japan to resume its stalled projects in the island nation. Shunichi, who is on a two-day visit, met President Ranil Wickremesinghe and emphasised the value of transparent and comparable debt restructuring. The bilateral relationship was under stress for a period with Sri Lanka's unilateral cancellation of a Japanese-funded project in 2020. He (Shunichi) has assured that the recent suspension of Yen loans due to Sri Lanka's debt crisis could be reversed pending the conclusion of an MoU at the Official Creditor Committee (OCC) and continued debt sustainability monitored by the IMF, a statement from the President's office said. The President expressed profound appreciation for Japan's lead role in addressing Sri Lanka's debt issues. The talks encompassed future collaborations, emphasising areas such as information ...

India, Sri Lanka discuss early launch of UPI payment system in country

Six months after it was announced by the prime ministers of both countries, India has discussed the early launch of the UPI payment system with Sri Lanka and reiterated its support in the cash-strapped island nation's debt restructuring process. In July 2023, Prime Minister Narendra Modi and Sri Lanka President Ranil Wickremesinghe signed an agreement on Unified Payments Interface (UPI) acceptance in Sri Lanka during Wickremesinghe's two-day visit to India. The latest discussion took place on Monday during a meeting between the High Commissioner of India Santosh Jha with the Governor of the Central Bank of Sri Lanka (CBSL), Dr Nandalal Weerasinghe. High Commissioner reiterated that #India will continue to be a steadfast partner in Lanka's economic recovery in his meeting with @CBSL Governor. Discussed early launch of UPI payment system in SL, growth in INR trade settlements, and India's support in Lanka's debt restructuring process, said a post on X by the High Commissioner of India

India to help Sri Lanka with upgradation of railways; to cost $91.27 mn

India and Sri Lanka have together launched multiple works costing USD 91.27 million across the island nation to upgrade the railway network which will enhance the mobility of goods and services and boost economic activity. Sri Lanka's Minister of Transport, Highways and Mass Media Dr Bandula Gunawardena and High Commissioner of India to Sri Lanka Santosh Jha ceremonially launched the multiple works on Sunday, a release from the office of the High Commission of India said here. Minister of Transport Gunawardena thanked India for the support extended to Sri Lanka, especially in the transport sector. The Indian High Commissioner expressed happiness that as a long-standing development partner of Sri Lanka, India had executed projects for the development and rehabilitation of Sri Lanka's Northern and Southern Railway line over the past several years in line with the priorities and requirements of the Government of Sri Lanka. Jha also underscored the importance of the modernisation of ..

Sri Lanka Navy ready to send ship to Red Sea to protect merchant vessels

The Sri Lanka Navy on Monday said it is ready to send a naval ship to the Red Sea to combat the threat to merchant vessel lines by Houthi rebels, joining countries such as India, in protecting the key waterway for global trade. The announcement comes following last week's orders of President Ranil Wickremesinghe, who had declared the cost as Rs 250 million every fortnight. The Iran-backed Houthi rebels have launched more than 20 attacks on merchant ships in recent weeks, claiming to take revenge against Israel for its military campaign against Palestinian terror group Hamas in Gaza. These attacks have sharply raised goods' transportation costs between Asia and Europe. Newswire Lanka quoted Navy spokesman Captain Gayan Wickramasuriya as saying that but the exact date of deployment is yet to be confirmed. The vessels would be covering the Red Sea, Arabian Sea, Gulf of Aden, and connected sea lanes. Captain Wickramasuriya went on to say that initially one ship would be deployed as pa

India, Sri Lanka agree to expedite action on projects to boost relations

India's High Commissioner to Sri Lanka, Santosh Jha met Sri Lankan Minister of Foreign Affairs, Ali Sabry and agreed to expedite various projects that will provide positive momentum to the India-Sri Lanka partnership.Sharing on his social media X, Indian High Commissioner to Sri Lanka Santosh Jha stated, "Very pleased and honoured to have my first call on Foreign Minister of Sri Lanka HE @alisabrypcNoted the extraordinary warmth in India-Sri Lanka ties and agreed that expeditious action on various projects is important to keep the strong positive momentum in our partnership."Earlier on Thursday, Santosh Jha held a meeting with Sri Lankan Foreign Affairs Minister Ali Sabry and discussed ways and means to further enhance bilateral cooperation.In a post shared on X, Sabry said, "Pleased to have received the newly appointed High Commissioner of #India to #SriLanka Santosh Jha this morning. Recalling deep-rooted civilizational links between #SriLanka & #India, we discussed ways ...

Will deploy naval vessel in Red Sea to fight Houthi attacks: Sri Lanka Prez

President Ranil Wickremesinghe has announced that Sri Lanka will provide a Navy vessel to fight attacks by Houthi rebels on merchant ships in the Red Sea, joining countries like India in protecting the key waterway for global trade. The Iran-backed Houthi rebels have launched more than 20 attacks on merchant ships in recent weeks, claiming to take revenge against Israel for its military campaign against Palestinian terror group Hamas in Gaza. These attacks have sharply raised goods costs between Asia and Europe. Addressing an award ceremony here on Wednesday, Wickremesinghe, who holds the defence ministry portfolio, noted that merchant shipping was hit by Houthi attacks at the Red Sea and said if the ships were to be diverted and re-routed around South Africa, the voyages would become much more expensive. This could create (an) escalation of the cost of goods. "So we have agreed to send a Naval vessel to combat Houthi attacks in the Red Sea, he said. The Houthis, who control most

Sri Lanka raises fuel retail prices by Rs 20; first under new VAT hike

The Sri Lankan government raised retail fuel prices by Rs 20 effective from Monday in its monthly revision, making it the first retail price hike of any commodity under the imposition of new Value-Added Tax rates. The government revises fuel prices monthly based on the exchange rate of the US dollar and the global oil market prices. However, Monday's hike was purely a result of the new VAT rates. Sri Lanka's VAT rate has been increased by three per cent from Monday for the band, which was previously taxed at 15 per cent, while most VAT-exempt items have been brought under 18 per cent in a highly unpopular move. Last month, the International Monetary Fund (IMF) approved the release of the second tranche worth USD 337 million to the cash-strapped island nation, bringing the value of disbursements to USD 670 million in the four-year facility. With its reforms, the IMF programme meant that the government set cost-based tariffs for utilities, while several rate hikes on electricity ...

Lanka needs to stick to IMF programme to overcome crisis: Central bank guv

Sri Lanka's bankrupt economy has "no alternative" but to stick to the current USD 2.9 billion IMF bailout programme, central bank governor Nandalal Weerasinghem has said. The International Monetary Fund (IMF) approved the release of the second tranche worth USD 337 million to Sri Lanka earlier this month. Weerasinghe was responding to queries if the island nation was open to renegotiating the terms of the four-year programme on the back of claims by opposition parties that they would renegotiate conditions for the IMF's USD 2.9 billion bailout package. There is no alternative. The fact that we attempted alternatives was why we are here (bankruptcy) now, Weerasinghe told reporters on Friday. We have to go in the same path, say, if the period of debt restructuring allowed is 10 years if they (opposition) want to change it, the creditors can say, we don't support this anymore. If we were to leave the programme, we will have to pay USD 6 billion a year in repayments, Weerasinghe ...

2023 Rewind: India helps Sri Lanka reel out of its debt-trapped economy

As Sri Lanka and India marked their 75th anniversary of diplomatic relations in 2023, New Delhi has again emerged as a steadfast ally of Colombo, playing a pivotal role in the debt-trapped island nation's steady economic recovery. When the unprecedented economic turmoil struck Sri Lanka last year, India swiftly extended a lifeline to the country with assistance of over USD 4 billion, surpassing the International Monetary Fund's 48-month bailout of about USD 3 billion. The timely financial support from India was a testament to the strong bond between the two countries. Sri Lanka, acknowledging India's role, successfully navigated the IMF negotiations in March this year, crediting India's Finance Minister Nirmala Sitharaman for her role during the early stages of discussions with the global lender. A significant development was Sri Lanka's decision to utilise the first tranche of USD 330 million of the IMF bailout to repay Indian loans. This underscored India's patience and generosity

World Bank releases second tranche of $250 mn to cash-strapped Sri Lanka

Citing continued satisfactory progress in Sri Lanka's reform programme, the World Bank on Wednesday announced the release of the second tranche of USD 250 million to the cash-strapped country which will help stabilise the economy. The World Bank had pledged USD 500 million in budgetary support and released its first tranche in June to cash-strapped Sri Lanka, which has a total foreign debt of USD 46.9 billion. Through the facility known as the Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation (DPO), the World Bank release was made considering the continued satisfactory progress made by the government with the reform programme. The RESET DPO, which provides budget support to the government, was originally approved in June this year, it added. Sri Lanka was hit by its worst economic crisis in history in 2022 when its foreign exchange reserves fell to a critical low and the public came out on the streets to protest the shortage of fuel, fertilisers and

Negotiating trade pact with EU, UK, Sri Lanka, Peru: Commerce ministry

India is negotiating free trade agreements with the European Union (EU), the UK, Sri Lanka, and Peru, according to a year-end review statement of the commerce ministry. India-European Union (EU) free trade agreement negotiations were formally re-launched on June 17 2022. "Negotiations cover 23 policy areas/chapters. Six rounds of negotiations have been held till October 2023," the ministry said. With the UK, 13 rounds of talks have been completed and the next round will take place in January 2024. "India-Sri Lanka Economic and Technology Cooperation Agreement (ECTA) negotiations are ongoing with the 12th round of negotiations conducted from 30th October to 1st November 2023 in Colombo," it said. It added that both sides also agreed to continue discussions on matters, including apparel quotas and pharmaceutical procurement. With Peru, it said discussions on various chapters, including rules of origin, trade in goods, trade facilitation, sanitary, and phytosanitary measures were ..

Sri Lanka arrests 14 Indian fishermen for allegedly poaching in its waters

The Sri Lanka Navy has arrested 14 Indian fishermen and seized their trawler for allegedly poaching in the island nation's waters, taking the total number of arrests this year to nearly 240. These fishermen were arrested on Sunday off the coast of Karainagar in the northern Jaffna peninsula, the Navy said in a release on Monday. So far this year, some 240 Indian fishermen, along with 35 trawlers, have been arrested for illegal fishing. Earlier on December 6, at least 21 Indian fishermen were similarly arrested with their four trawlers seized in the northeastern waters off Mannar and Kovilan. Last week, referring to the recurring problem of Indian fishermen doing illegal fishing in Sri Lankan waters, Fisheries Minister Douglas Devananda told Parliament that it needs a top-level diplomatic solution between the two nations. The fishermen issue is a contentious one in the ties between India and Sri Lanka, with Lankan Navy personnel even firing at Indian fishermen in the Palk Strait an

No alternative to IMF program: Sri Lankan president on economic crisis

Sri Lankan President Ranil Wickremesinghe on Sunday said that there was no alternative to the IMF programme for the cash-strapped island nation to get out of its economic bankruptcy. Last week, the International Monetary Fund (IMF) approved the release of the second tranche worth USD 337 million to the island nation, bringing the value of disbursements to USD 670 million in the four-year facility. Responding to the strong criticism from the opposition to the reforms, President Wickremesinghe, who is also the finance minister, said that he opted for the IMF programme as it was the only option available. People who make statements to please the gallery are not prepared to take the tough decisions needed. I opted for the IMF programme as it was the only option available, he said and urged all political parties to act responsibly while demeaning the USD 2.9 billion bailout. He added that tough decisions had to be taken to set in the reforms to correct the economic wrongs of the past.

Sri Lanka's economy records positive growth for first time since crisis

Sri Lanka's bankrupt economy has recorded a positive growth for the first time since the economic crisis hit the island nation, according to official data. The year-on-year GDP growth rate for the third quarter has been reported as 1.6 per cent of positive growth rate, the Department of Census and Statistics (DCS) said in a press release on Friday. Sri Lanka had recorded a minus 8 per cent growth when it declared bankruptcy in April 2022. The country's economy continued to be in the negative from the fourth quarter of 2021. The International Monetary Fund (IMF), which released the second tranche of its USD 2.9 billion bailout earlier this week, has said that Sri Lanka's overall growth for 2023 would remain negative. However, the country's economy in 2024 is expected to grow with a positive one plus growth, it said. Sri Lanka is currently going through a strict IMF based reform regime. President Ranil Wickremesinghe, who is also the finance minister, insists on reforms despite stro

Prevail upon Lanka to secure release of 45 fishermen, TN CM tells Centre

Tamil Nadu Chief Minister M K Stalin requested the Centre on Thursday to immediately take up through appropriate diplomatic channels the apprehension of fishermen from the state with Sri Lanka and secure the release of 45 fishermen and 138 boats. Expressing "a deep sense of anguish" on yet another incident of apprehension of six Indian fishermen by the Sri Lankan Navy on December 13, he said this was the third such occurrence in a week. "Six fishermen from Jegathapattinam fishing harbour, Pudukkottai district, who ventured for fishing in a mechanised fishing boat were apprehended by the Sri Lankan Navy along with their fishing boat," the Chief Minister said in a letter to Union External Affairs Minister C Jaishankar, a copy of which was made available to the media here. He said the Sri Lankan Navy continued to infringe upon the traditional rights of our fishermen, and their frequent arrests have jeopardised the livelihoods of the fishermen and have instilled fear and panic in the ..

Six Indian fishermen detained by Lankan navy, 2nd incident within a week

According to the Sri Lankan Navy, the fishermen were allegedly involved in 'illegal poaching' and were detained off the Kovilan Lighthouse in Kareinagar after a special operation on Wednesday

Sri Lanka to get access to $337 million from IMF to stabilise economy

The IMF Executive Board has completed the first review under the 48-month Extended Fund Facility with Sri Lanka, providing the cash-strapped country with access to about USD 337 million to restore macroeconomic stability and debt sustainability. Announcing this, Peter Breuer, Senior Mission Chief for Sri Lanka also said that the debt restructuring with China was concluded on a strictly confidential basis for the International Monetary Fund (IMF) to conclude its first review of the USD 2.9 billion bailout. China holds 52 per cent of Sri Lanka's total debt. The Chinese agreement in principle was very good news in Sri Lanka's debt restructuring talks. We have seen a summary of the key financial terms of the agreement shared by authorities on a strictly confidential basis," Breuer told reporters on Tuesday. The IMF late Tuesday concluded the review and approved the release of the second tranche worth USD 337 million to the island nation, bringing the value of disbursements to USD 670 .

Asian Development Bank approves $200 mn loan to debt-stricken Sri Lanka

The Asian Development Bank said on Friday that it has approved USD 200-million concessional loan to debt-stricken Sri Lanka to help stabilise the country's finance sector following an unprecedented economic crisis that engulfed the Indian Ocean island nation last year. The bank's announcement comes as Sri Lanka is awaiting International Monetary Fund approval for the second installment of a USD 2.9-billion bailout package to rescue the country from bankruptcy. The ADB said its Financial Sector Stability and Reforms Program for Sri Lanka includes two subprogrammes of USD 200 million each that would help strengthen the stability and governance of the country's banking sector, and deepen sustainable and inclusive finance, particularly for women-led micro, small, and medium-sized enterprises. The programme's overarching development objective is fully aligned with the country's strategy of maintaining finance sector stability, while ensuring that banks are well-positioned for eventual ..

Sri Lanka arrests 21 Indian fishermen for alleged poaching in its waters

At least 21 Indian fishermen have been arrested for allegedly poaching in Sri Lanka's territorial waters, the island nation's Navy has said, taking the total number this year to 195. The Indian fishermen were arrested and their four trawlers were seized on Wednesday in the northeastern waters off Mannar and Kovilan. The Navy said in 2023 they had arrested 195 Indian fishermen for poaching in Sri Lankan waters. The fishermen issue is a contentious one in the ties between India and Sri Lanka, with Lankan Navy personnel even firing at Indian fishermen in the Palk Strait and seizing their boats in several alleged incidents of illegally entering Sri Lankan territorial waters. The Palk Strait, which is a narrow strip of water separating Tamil Nadu from Sri Lanka, is a rich fishing ground for fishermen from both countries. There have been periodic instances of Indian fishermen being arrested by Sri Lankan authorities for allegedly crossing the International Maritime Boundary Line and ...