Sri Lanka’s positive future- By Dr Harold Gunatillake
transcript: Sri Lanka is appreciative of India’s help
Sri Lanka, IMF reach preliminary agreement on emergency loan: reports
IMF staff and the Sri Lankan authorities have reached a staff-level agreement to support Sri Lanka’s economic policies with a 48- month arrangement under the Extended Fund Facility (EFF) of about US$2.9 billion.
Lankan envoy says India anchors regional security. WFP says three in 10 Sri Lankans are food insecure
ADB approves a $200 million loan to mitigate Sri Lanka’s food crisis Sri Lanka invites Saudi Arabia to set up an oil refinery
India’s great support: In Wellawaya in Uva Province, a self-effacing Sinhalese farmer harvested his paddy crop raised during the Yala cultivation season (May to August). He said he has received an average yield this time thanks to “the supply of chemical fertilisers from India.” In the preceding Maha season (September to March), this small-scale farmer suffered a 50% crop loss because the Sri Lankan government decided to migrate to organic farming abruptly.
India has assisted with nearly $4 billion to its neighbour. However, there is a strong case for greater Indian engagement with Sri Lanka, which is still struggling to tackle the crisis. Such attention need not be confined to liberal loans; it could also include sharing technical expertise or knowledge or helping the country upgrade skills in different areas of economic activity.
Lankan envoy says India anchors regional security.
Acknowledging India’s efforts to help Sri Lanka cope with its worst economic crisis, Moragoda, our High Commissioner in India, said in an interview that New Delhi would continue to play a crucial role in aiding the island nation’s recovery, including investments and assistance with bridging finance till Colombo finalises a bailout package with the International Monetary Fund (IMF).
China asks Sri Lanka to discuss debt issues, as suggested earlier.
On August 30, 2022, Director-General of the Department of Asian Affairs of the Foreign Ministry Liu Jinsong met with the Ambassador of Sri Lanka to China, Dr Palitha Kohona. The two sides had a cordial and friendly exchange of views on China-Sri Lanka relations and international and regional issues of common concern.
Liu Jinsong said that in recent days, Mr Ambassador frequently participated in activities and gave interviews to the media, actively promoted exchanges and cooperation between China and Sri Lanka in various fields, publicly refuted the so-called “China’s debt trap” claim, and safeguarded and promoted China-Sri Lanka relations and the traditional friendship.
IMF gives Lanka a 4-four year Extended Fund Facility and a US$ 2.9 billion loan
Colombo, September 1: An IMF mission led by Peter Breuer and Masahiro Nozaki visited Colombo from August 24 to September 1, 2022, to continue discussions on IMF support for Sri Lanka and the authorities’ comprehensive economic reform program. At the end of the mission, Messrs. Breuer and Nozaki issued the following statement:
“The Sri Lankan authorities and the IMF team have reached a staff- level agreement to support the authorities’ economic adjustment and reform policies with a new 48-month Extended Fund Facility (EFF) with a requested access of about SDR 2.2 billion (equivalent to US$2.9 billion).”
“The new EFF arrangement will support Sri Lanka’s program to restore macroeconomic stability and debt sustainability while safeguarding financial stability, reducing corruption vulnerabilities and unlocking Sri Lanka’s growth potential,” the IMF said in a statement.
“Against this backdrop, the authorities’ program, supported by the Fund, would aim to stabilise the economy, protect the livelihoods of the Sri Lankan people, and prepare the ground for economic recovery and promoting sustainable and inclusive growth.”
“The IMF team held meetings with President and Finance Minister Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena, Central Bank of Sri Lanka Governor Dr P. Nandalal Weerasinghe, Secretary to the Treasury K M Mahinda Siriwardana, and other senior government and CBSL officials. It also met with Parliamentarians, representatives from the private sector, civil society organisations and development partners.
“We would like to thank the authorities for their candid approach and warm hospitality and look forward to continuing our engagement in support of Sri Lanka and its people.”
After the staff-level agreement with the IMF, the task ahead for Lanka is more challenging.
The IMF team made it clear that the actrealisationtion of the loan will be tied to the willingness of Sri Lanka’s external creditors to take haircuts and restructure the repayment terms in a mutually agreed way. Herein lies the problem. The creditors are a mixed bag of bilateral donors, international funding organisations, and many private owners of Sri Lanka’s international bonds. All of them should agree to a standard formula based on transparency. It is not an easy task for
the two global companies charged with the responsibility to work out such a deal.
I hope this information in this video presentation will assist in gathering the latest news about Sri Lanka for a better sustainable hopeful future.
Because of the disunity and lack of unanimity in decision-making among the lawmakers, the future for all people in Sri Lanka will be bleak.
Also, I thank all those Sydney Sri Lankans attending my felicitation function on the 14th of October.
Thank you for watching
Stay safe, and goodbye for now.
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