Page 31 - Sri Lanka

Sri Lanka, India to begin passenger ferry service by end of April

The much-delayed passenger ferry service between Sri Lanka and India is set to start by the end of April, Civil Aviation Minister Nimal Siripala de Silva said on Sunday. On April 29, the ferry service between Karaikal and Kankesanthurai in port in Jaffna district would begin. Each passenger would be allowed a 100 kg baggage allowance at a very concessionary rate," the minister said. De Silva said the opportunity would be open to any passenger ferry operator of both countries to run the service. A passenger terminal is being built by the Sri Lanka Navy at Kankesanthurai. The service would be a four-hour-long voyage, the Aviation Ministry here said.

Sri Lanka receives first tranche of $330 million IMF bailout programme

Sri Lanka has received USD 330 million as the first tranche of the IMF bailout programme, which will pave the way for the debt-ridden country to achieve better "fiscal discipline" and "improved governance," according to President Ranil Wickremesinghe. The International Monetary Fund (IMF) on Tuesday approved a USD 3 billion bailout programme to help Sri Lanka overcome its economic crisis and catalyse financial support from other development partners, a move welcomed by Colombo as a "historic milestone" in the critical period. Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis, sparked by years of mismanagement and the raging pandemic. The cash-strapped country has received the first tranche of USD 330 million of the IMF Extended Fund Facility (EFF), Daily Mirror Lanka newspaper quoted state finance minister Ranjith Siyambalapitiya as saying. "This sets the stage for the country to achieve better fiscal discipline and improved governance," President ...

Sri Lanka's Election Commission postpones postal voting for local polls

Sri Lanka's election body on Thursday postponed the postal voting for the local body polls scheduled to take place next month due to a severe paucity of funds. The local body polls, which were earlier scheduled on March 9, got postponed to April 25, due to a plethora of reasons linked to Sri Lanka's current economic crisis. The Election Commission Director General Saman Sri Ratnayake on Wednesday met representatives of all the political parties seeking their opinion on whether postal voting should be postponed. Ratnayake said all the parties have agreed that the dates for postal voting should be finalised only after the allocated funds are released by the Treasury. Following the meeting with all the representatives of the political parties, the Election Commission has decided not to hold postal voting for the local body polls, which were scheduled to take place between March 28 to April 3. Ratnayake added that a fresh date for the postal voting will be announced soon. Earlier thi

Sri Lanka arrests 12 Indian fishermen, TN CM flags issue with Centre

Tamil Nadu Chief Minister M K Stalin on Thursday expressed concern over the "alarming frequency" with which Indian fishermen from the state were being harassed allegedly by the Sri Lankan Navy, and urged that the Centre intervene to ensure the release of 28 such fisherfolk from Lankan custody. Bringing the latest instance of the arrest of TN fishermen to the attention of Prime Minister Narendra Modi, Stalin said 12 of them were arrested on Thursday and two mechanised fishing boats were seized by the Lankan Navy. "In this year alone, so far 28 fishermen and four fishing boats have been apprehended by the Sri Lankan Navy. It is highly disheartening to note that our fishermen are facing harassment at the hands of the Sri Lankan Navy at an alarming frequency," he told the PM in a letter. "It continues despite several letters of protest sent by Government of Tamil Nadu highlighting the escalation in the number of such instances of arrests of our fishermen." Stating that the arrests and

IMF facility debunks Sri Lanka's bankrupt status: President Wickremesinghe

President Ranil Wickremesinghe told Parliament on Wednesday that the IMF bailout had restored Sri Lanka's international recognition, ending the image of bankruptcy and helping the local banks regain foreign investors' confidence. The IMF board had on Tuesday approved a USD 3 billion facility over a four-year period to help Sri Lanka emerge from its balance of payment crisis which plagued the island since April last year. Wickremesinghe said the bailout would create opportunities for low-interest credit, restore foreign investors' confidence, and lay the foundation for a strong new economy. The receipt of the IMF Facility is a step towards building a better future for the youth and uplifting the country. Additionally, the country is expecting about USD 7 billion dollars more in rapid credit support from other parties. Amidst numerous hardships, bearing all kinds of pressure, and undergoing suffering with equanimity, the people of this country remained calm and patient. Their commit

Lanka economic crisis: From protests to IMF's $3-billion rescue

The IMF has approved a nearly $3-billion bailout which could help the country unlock up to $7 billion more from other lenders

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IMF approves $3 bn in financial assistance for Sri Lanka to overcome crisis

The International Monetary Fund on Monday approved USD 3 billion in financial assistance to debt-ridden Sri Lanka to help it immediately overcome its economic crisis. IMF's Executive Board approved on Monday a 48-month extended arrangement under its Extended Fund Facility (EFF) with an amount of SDR 2.286 billion (395 per cent of quota or about USD 3 billion), according to a statement. Special Drawing Rights (SDR) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis. The economy is facing significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead up to the crisis, further aggravated by a series of external shocks, the IMF said. The EFF-supported programme aims to restore Sri Lanka's macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financi

Sir Lanka's world-beating bonds pin hopes on IMF billions: Report

The nation's dollar bonds have returned 20 per cent this year, the top performers

IMF to approve $2.9 bn bailout package for Sri Lanka: Central bank governor

The IMF package will include budgetary support to Sri Lanka's government, which is a new element in IMF lending, he added

Sri Lanka govt debt rose to 115.2% of GDP by the end of 2022: Report

The Sri Lankan government's debt has risen to 115.2 per cent of Gross Domestic Product (GDP) by the end of 2022 from 104.5 per cent a year earlier, according to the latest national account estimates

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Lack of independence at Central Bank led to Sri Lanka's bankruptcy

The governor of the Central Bank of Sri Lanka Nandalal Weerasinghe has cited the lack of independence of the apex bank in determining the monetary policy as a reason for the country's unprecedented economic crisis. The Sri Lankan government in May last year declared a debt default on over USD 51 billion in foreign loans -- a first in the country's history. Weerasinghe made the statement on Thursday while talking about a proposed bill aimed to provide autonomy to the Central Bank without any undue influence from the fiscal authorities or the government. "In 2020, 2021 and 2022, the policy interest and exchange rates were fixed without the Central Bank," Weerasinghe said. The exchange rate was fixed at Rs 203 leading to the total loss of our reserves and bankruptcy, he said, recalling the situation prevailing at the time of his takeover last year from his predecessor Ajith Cabraal. He said it was important to let the Central Bank act independently to determine the policy interest ra

India continues to support debt-ridden Sri Lanka, distributes ration

India, under its 'Neighbourhood First' policy, has always come forward to help debt-ridden Sri Lanka, and in the latest instance has distributed the ration in Kalmunai, the Indian High Commission said

Sri Lankan unions end strike after President Wickremesinghe offers talks

Sri Lanka's state-sector trade unions on Wednesday called off their daylong strike to protest against the envisaged tax reforms after President Ranil Wickremesinghe pledged to give them an opportunity to discuss the issue with the IMF which has set this as a precondition for a crucial bailout package. The trade unions of doctors, ports, banks, electricity and teachers observed a day-long strike with the hope to convert it to a continuous protest action. They want the government to roll back the high personal taxes which the government had claimed was a necessity as part of the reforms demanded by the IMF to unlock the USD 2.9 billion bailout package. President Wickremesinghe's secretary Saman Ekanayake in a letter sent today to the doctors' trade union said: The Hon President has directed me to inform you that he wishes to continue the dialogue with the trade unions to resolve the issues An opportunity would be provided to the trade unions to discuss tax reforms with the IMF," he

South Asia gets back to reality

The crises in Sri Lanka and Pakistan raise questions about the relevance and costs of reliance on the alternative financial system provided by China's Belt and Road Initiative

Government workers in Sri Lanka stage protest over income tax hike

Sri Lankan health, railway, port and other state workers were on a daylong strike Wednesday to protest against sharp increases in income taxes and electricity charges, as the island nation awaits approval of an International Monetary Fund package to aid its bankrupt economy. Most government hospitals around the country suspended their outpatient clinics because doctors, nurses and pharmacists were on strike. The railways operated fewer trains and armed soldiers guarded carriages and train stations fearing sabotage. Trade unions say the increase in taxes and electricity charges have hit them hard amid difficulties from the country's worst economic crisis. They have threatened to extend the strike indefinitely if the government fails to address their demands. The government says it was compelled to raise taxes to strengthen state revenue and electricity charges to cover production costs, key prerequisites to unlocking the proposed USD 2.9 billion IMF package. Authorities say they ...

India secure WTC final berth after New Zealand beat Sri Lanka in thriller

India on Monday qualified for the prestigious World Test Championship (WTC) final after New Zealand defeated Sri Lanka by two wickets in a thrilling last-ball finish in the Christchurch game. India will play Australia in the WTC final at The Oval from June 7. This is India's second successive entry into the WTC final, with the previous one coming in the inaugural cycle in 2021, where they lost to New Zealand. With the Dimuth Karunaratne-led side's only shot at the WTC final berth hinging on a 2-0 victory against the Kiwis in the away series, the loss for the Islanders ended their hopes of securing a spot. Australia was the first team to secure a WTC final berth after humbling India by nine wickets in the third Test of the Border-Gavaskar series at Indore, leaving the hosts praying for a favourable result in the first Test between New Zealand and Sri Lanka. The result in Christchurch took the fourth Test of the Border-Gavaskar series in Ahmedabad out of the equation as earlier Indi

Sri Lanka uses Indian financial aid to buy textbooks for 4 mn students

Sri Lanka has used over USD 10 million from India's assistance of USD 1 billion to print nearly half of the textbooks for its four million young students, the Indian High Commission here said on Saturday. India announced a USD 1 billion line of credit to Sri Lanka last year as part of its financial assistance to help the country deal with its economic crisis. After an agreement to extend the line of credit was inked, Ministry of External Affairs (MEA) Spokesperson Arindam Bagchi had said India has always stood with the people of Sri Lanka and will continue to extend all possible support to the country. A concessional credit facility of USD 1 billion was extended to the Government of Sri Lanka by the Government of India in March 2022 for supply of essential items including food, fuel, medicines, industrial raw materials. Out of this facility, over USD 10 million has been used by SPC and private importers to procure printing paper and material from India, the High Commission here ...

Sri Lanka adopts first national action plan on women, peace and security

Battered by a series of crisis over the year, including war, Covid-19 pandemic and economic calamity, Sri Lanka adopted its first National Action Plan on Women, Peace and Security (WPS)