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In a determined push to address Sri Lanka’s debt crisis and foster reconciliation, President Ranil Wickremesinghe outlined his plans to finalize the debt restructuring process by September. 

Participating in the 40th anniversary event of the International Democrat Union (IDU) in London, Wickremesinghe expressed his aims to develop a comprehensive strategy for resolving the nation’s financial burdens in close collaboration with the Parliament.

The event took place on 19 and 20 June, with Wickremesinghe being joined by former Canadian Prime Minister (Conservative Party) Chairman of the IDU, Stephen Harper.

While debt restructuring remains a key priority, President Wickremesinghe noted that his primary focus lies in completing vital structural reforms, aiming to accelerate economic liberalization and attract increased investments, which are intended to bolster Sri Lanka’s financial prospects and drive a more favourable balance of trade in the long term.

Amidst questions regarding the duration of the process, Wickremesinghe expressed confidence that substantial headway will be achieved by 2024. 

Furthermore, he said that efforts have been made to address land-related concerns in the North and East regions, with progress being made on settling these disputes. The Missing Persons Office has taken steps towards utilization and has yielded potential solutions, which have been shared with Tamil parties. 

Following are excerpts from the interview:

President Ranil Wickremesinghe;

If I look back to May-June last year, Sri Lanka was on the verge of chaos. No one seemed willing to take charge or show leadership. I found myself in a peculiar position. In the 2019 Presidential Election, our party wanted to adopt a populist approach, so they chose our deputy leader as their candidate. Unfortunately, as I had anticipated, he suffered a significant defeat.

Then the COVID pandemic struck, and in August 2020, we went ahead with the election. Personally, I believed that we should stick with the IMF program. This program, which we had initiated in 2016, required Sri Lanka to commit to a primary surplus and reduce subsidies. We diligently worked towards these goals, and by 2018, we managed to achieve a primary surplus of USD 300 million. While it was a modest amount, it gave us a starting point to build upon.

However, the new government that came into power subsequently decided to cancel the IMF agreement. It was at that point that I advocated for revisiting the IMF and requesting them to reinstate the agreement. Furthermore, I suggested that we explore other options to raise USD 5 million.

During my tenure as Prime Minister, I had engaged in negotiations with the Japanese, Indians, and other parties for projects worth approximately USD 4 billion. Unfortunately, all those projects were ultimately cancelled. Despite this setback, some members of my own party believed that our approach was too narrow and opted for a populist stance, eventually breaking away from the party. As a result, for the first time in history, my party was left with just one member in parliament, which happened to be me. Meanwhile, the breakaway faction had gathered 50 members.

On May 9 of the previous year, riots erupted, leading to the burning of the residences of 65 government members of parliament. Consequently, the Prime Minister at the time, Mr. Mahinda Rajapaksa, was compelled to resign. That night, I engaged in discussions with a government member to explore how I could be of assistance. The following day, the President reached out to the leader of the opposition and the leader of the breakaway faction, asking them to assume the position of Prime Minister. However, the leader of the breakaway faction declined the offer.

During this period, I had been advising the President to seek assistance from the IMF and the World Bank. Subsequently, the government insisted that I should become Prime Minister and nominated me for the position with their support. I expressed my concern about being the only member of the party and questioned the feasibility of having a Prime Minister under such circumstances. However, they reassured me that they would support me and initiated negotiations with the IMF.

In the previous year, our debt services amounted to approximately $8 billion. By April 2022, our financial situation had deteriorated to the point where we had to declare ourselves bankrupt. However, as we began to recover and the government started functioning, a wave of protests emerged. On July 9, a group of organizers managed to gather a significant number of people in Colombo, something unprecedented in scale.

Shockingly, these protesters went on to invade the official residence of the President. Faced with this unexpected threat, the President had to flee to the harbour and board a ship belonging to the 
Sri Lankan Navy. Later that afternoon, party leaders convened a meeting, during which they demanded the President’s resignation and proposed that I assume the role of acting President. However, the opposition insisted that I should also resign. I stood firm and reminded them that according to the constitution, a person with a majority vote in parliament must be found before I could resign. Meanwhile, urged by some media outlets, the protesters targeted my house and set it on fire, assuming I would be compelled to leave. However, I remained steadfast and refused to back down.

The following day, I was asked to resign, while some others advocated for the Speaker to take over. However, both propositions were rejected. I maintained my position and refused to resign. On Monday, with the cabinet assembled, we held a televised meeting, while the President had already left the country for the Maldives. Meanwhile, the protesters resolved to seize the Prime Minister’s office and take control of Parliament.

Two days later, a fierce battle ensued outside the Prime Minister’s office, lasting approximately six to five hours. Despite the escalating situation, I refrained from ordering the use of firearms. Eventually, the protesters managed to break into the Prime Minister’s office, with the military accompanying them. In the afternoon, they began marching towards Parliament. Recognizing the gravity of the situation, I instructed the Chief of Defence to issue a statement, emphasizing that the protesters must not take over Parliament. The opposition leader supported this stance.

I then directed the army commander, reminding him of his responsibility to protect the parliamentary building. I stressed that we could deploy the best battalion in Sri Lanka, even without arms, to confront the protesters. Remarkably, the unarmed battalion successfully managed to quell the protests, but unfortunately, 24 soldiers were injured in the process.

At that moment, I realized that it was time for me to step in and assume control. The President had already submitted his resignation, yet nobody was willing to allow me to be sworn in as the acting president within any official buildings. I made a conscious decision not to utilize Parliament or the Chief Justice’s residence, nor any of the other buildings occupied by ministers.

Instead, I had to resort to a family temple near my house. Early in the morning, I went to the temple, accompanied by the Chief Justice, where I took my oath of office. In order to maintain secrecy, the priest requested that the location of the temple not be disclosed. There was a photograph capturing the moment I was being sworn in, but the temple’s whereabouts remained unknown.

Soon after, we had to proceed with the presidential election. In the meantime, I took necessary steps to restore law and order. I firmly stated that these were not mere protests, but actions intended to overthrow the government and disrupt the Sri Lankan parliament. I had a responsibility to put an end to it.

Although a number of protesters were initially arrested, they were later released, which only served to embolden them further. Even the presidents of the Bar Association stood in solidarity with them. Recognizing the gravity of the situation, I consulted with the Attorney General and realized that the protesters were attempting to attack Parliament. As a result, I issued detention orders and apprehended two or three individuals. It was the only viable approach to address the escalating crisis. Eventually, the Prime Minister’s office was cleared as the army intervened, followed by the clearance of the President’s office and residence.

When it came time for the election, the circumstances were quite peculiar. On one side, there was the government party led by the Rajapaksa clan, whom we were opposed to, and on the other side, there was the opposition. Surprisingly, I discovered that I had support from both the government party and the opposition, and they urged me to contest the election. Responding to their call, I entered the race and emerged victorious, winning by a margin of 135 votes. Once I assumed the presidency of Sri Lanka, I promptly issued an order prohibiting any form of demonstrations in the country for one week, aiming to restore peace and stability.

As a result of these efforts, we successfully managed to restore order. We reached out to the large number of individuals who were attempting to disrupt peace and sent them a message, urging them to support the government in its endeavour to re-establish law and order. The silent majority, including businesses and individuals in the villages, stood behind this cause, even if they may not have specifically supported me personally. Their support was for the restoration of law and orders itself.

Having achieved stability, I proceeded to take additional measures to address the prevailing economic crisis. One of our key decisions was to initiate negotiations with the International Monetary Fund (IMF).

I plan to finalize the debt restructuring after September. As I move forward, I will be working on Sri Lanka’s debt restructuring strategy with the parliament. However, my main focus is on completing the necessary structural reforms. I aim to promptly liberalize the economy and attract more investments to Sri Lanka. In the long run, it is crucial to have investments that will improve the balance of trade in our favour. So, why should this process take so much time? Nonetheless, I am confident that by 2024, we will have much greater control over the situation.

Mr Stephan Harper

And ultimately, what you’re conveying is, I believe, a message that applies to all of us. While the economic problems may vary in severity across our countries, challenges still exist. The only viable solution in the long run is a program driven by the private sector.

President Wickremesinghe

A market-oriented, credit-integrated growth strategy is the only available option. I genuinely believe there is no other solution, and this has been the case for thousands of years.

Mr Stephen Harper

Well, Winston Churchill famously remarked that all forms of government are dreadful, except for democracy. We observe that societies often experiment with socialism, protectionism, corporatism and populism until they ultimately realize that conservatism is the only path to economic growth. However, let’s shift gears because a significant portion of our discussion revolves around global affairs and foreign policy. While we represent a diverse group here, it is evident that we predominantly represent the Global North, whereas you hail from the Global South. Considering your geographical position, where do you envision Sri Lanka’s future foreign focus? Which countries serve as its strategic allies, and what risks do you anticipate in the upcoming phase?

President Wickremesinghe

Sri Lanka’s primary strategic allies in Asia are the Southern Asian region. Additionally, we maintain relationships with the Middle East, India, Japan, China, and Australia. Looking westward, we engage with Europe, the United Kingdom, Commonwealth countries, and South Africa.

Mr Stephen Harper

In a world where trade pressures, the on-going COVID pandemic, and especially the conflict in Ukraine, have contributed to a growing polarization or tension between the United States and its allies on one side, and China and its allies on the other, how does a country in your position, in terms of economic growth, position itself? Where do you see Sri Lanka fitting into this scenario, and how do you navigate the complexities that arise from such dynamics?

President Wickremesinghe

Essentially, our stance aligns with the Global South, and we emphasize sharing that perspective. Both the United States and China are crucial partners for us. Their involvements in the Pacific region and the Belt and Road Initiative, along with the ASEAN outlook on the Indo-Pacific, are all compatible. 

The rise of China has contributed to the rise of Asia, so it is vital for us to ensure China’s continued economic development. However, that alone is insufficient for our region. We also need ASEAN, India, and the Middle East to witness growth over the next 20 to 25 years. While we have managed to strike a balance by leveraging relationships with various countries, we also value our association with the United States. Sri Lanka’s foreign policy has consistently aimed to prevent the militarization of the Indian region, yet we have supported the United States from the very beginning. 

Currently, we are urging everyone to collaborate with us in Sri Lanka to assume the chairmanship of IORA (Indian Ocean Rim Association) to safeguard freedom of navigation in the Indian Ocean. Simultaneously, we advocate for freedom of navigation in the Pacific. The three main issues need to be addressed collectively rather than one dominating over the other. China must engage in constructive dialogue with African countries to resolve these matters and reduce tensions.

Mr Stephen Harper

I’d like to delve deeper into the China question. It is often emphasized that the United States is essential for our security while China’s support is critical for our economy. We have to navigate both relationships, and undoubtedly, Chinese investments and business have played a significant role in Sri Lanka. However, I’ve noticed substantial issues regarding the debt obligations left by China. Could you provide some insight into this matter?

President Wickremesinghe

China holds the position of being both the largest bilateral creditor and the largest debtor as a private investor. Initially, China was unsure about how to approach the debt restructuring. They took time, while the United States offered assistance, followed by Japan and India with a combined amount of 3.5 billion. We utilized approximately 2.5 billion, and the United States also provided support. This marked the beginning of our progress. We engaged with the Paris Club, excluding India and China initially, but later India joined. Meanwhile, we were engaged in discussions with China, which were complicated due to their party conference in November. 

Eventually, they decided to stand by us. Then, in Sri Lanka, we proposed the Common Platform and suggested India join the platform while China attended as an observer. They expressed their willingness to engage in bilateral discussions with us, but their primary focus seems to be on bilateral discussions with the International Monetary Fund (IMF). The IMF ensures all parties are informed and involved. Currently, we are working on the platform for creditors and engaging with China, but I cannot predict how this will work out with other debtor nations.

Mr Stephen Harper

I have two more questions, but we are running a bit behind schedule. However, I must ask you about an important point of discussion here, considering your unique perspective from the Global South. Your country has significant trade relations with both Ukraine and Russia. Could you elaborate on how you envision the desired outcome in this context?

President Wickremesinghe

When it comes to the majority of the Global South, we have chosen to stay out of this conflict. Some countries within ASEAN have taken positions, with some working actively, while others remain neutral. 

A few have voted in favour of the revolution. From the beginning, it has been our belief that this issue could have been resolved through peaceful means. Our primary goal is to prevent the conflict from escalating and to ensure a peaceful settlement. As someone mentioned before, history has shown that major wars often originate in Europe. 

Our commitment lies in supporting a peaceful resolution in Ukraine. The question remains about how we can achieve this and bring Russia to the negotiating table. President Ramaphosa has led a delegation to both Russia and Ukraine in an effort to facilitate dialogue. However, we have yet to witness the conclusion of these negotiations, which will undoubtedly require time. The conflict has had significant repercussions on countries affected by disruptions in fuel and food supplies.

Mr Stephen Harper

Under your predecessor’s regime, you have talked about war, you had civil war in Sri Lanka, and we all know how the predecessor’s regime ended. Given all the challenges, how do you promote reconciliation between the Tamil community and the country as a whole?

President Wickremesinghe

When I was the Prime Minister, I started the process, so I am continuing from where I have ended. I am speaking with the members of Parliament representing the Tamil areas and we have come to agreements on many issues. On the truth and reconciliation commission, the legislation have been drafted. On the new anti-terrorist law has been presented to the Parliament. 

There were three major issues difference between the government and opposition two of which have been resolved. The third one finally has been resolved by court as to what the definition of terrorism is. They were looking for my views, I said let the court decide and we will go along with whatever the court says. There was a question of lands being inquiring from the Tamils in the North and East. 

The land issue is been settled and the missing persons office is taking step to resolve the issue. We have gone through half of the issues and come up with the solutions which I have given to the Tamil parties.

Acting Minister of Finance, Shehan Semasinghe speaking to reporters on Monday (19) said that the government has not made a final decision regarding the domestic debt optimization program.

Minister Semasinghe further emphasized the sensitivity surrounding the optimization of domestic debt and assured that the government is approaching this issue with utmost responsibility.

Expressing his views, Minister Shehan Semasinghe further said;

“No final decision has been made yet on the domestic debt optimization program. However, as a government, we always approach sensitive issues responsibly. President Ranil Wickremesinghe also addressed the matter of domestic debt optimization in Parliament. The Central Bank and the Ministry of Finance have provided clarifications on their stance. Our focus is on finding solutions for optimizing the banking and financial system of our country without negatively impacting stability, which is crucial. Consequently, various information and announcements are being released within the country.

Once the government reaches a final decision, we are prepared to inform both the parliament and the public. This is an extremely sensitive matter that significantly influences the market situation. Therefore, it is vital that we refrain from making statements that create doubts regarding this optimization, as it helps maintain stability in our financial market. We must all act responsibly in this regard. Following the President’s visit to France, we anticipate gaining a better understanding of these issues, particularly concerning the restructuring of foreign debt.

There have been criticisms on the political platforms concerning the current economic program implemented by the government. However, if the groups criticizing had a need or a plan, and possessed the capability, they would have an opportunity to confront that challenge. Only President Ranil Wickremesinghe has accepted that challenge. He has communicated to the people the progress made by the country since assuming office as President. While the leaders responsible for meeting the needs of the people fulfils their duties, those who have not taken on this responsibility continue to make various statements. Specifically, the JVP platform has expressed various opinions regarding the management of the economy. However, none of these statements present any practical ideas or programs for building the country.

The aim is to find a solution to the economic crisis without relying on the intervention of the International Monetary Fund (IMF). The government seeks to address the challenges and overcome the crisis through its own program, without external financial assistance. The specific solution that does not involve the IMF’s intervention is not mentioned.

While there are claims of providing a solution without IMF support, it is implied that such claims may lack substance. The challenging times we have faced are gradually coming to an end, and there is a belief that better progress will be achieved through the government’s program.

The IMF predicts a decrease in the negative growth rate from -7.8 to -3 by the end of the year. However, the government’s commitment and efforts are expected to lead to positive developments in 2024.

The government has achieved more results than anticipated thus far, and it is important to maintain the commitment made by the government.

The country’s progress in terms of transparency, combating corruption, and addressing fraud has gained international attention. The parliamentary week, which begins today, is expected to enhance confidence in Sri Lanka’s economy, administrative structure, and financial system. The Budget Office Bill and an Anti-Corruption Bill will be debated and passed in parliament, contributing to the country’s progress.

Passing these bills is crucial to boost the strength of the country’s financial market and attract investments. It may also lead to a change in rating agencies’ opinions about Sri Lanka. The first review with the IMF in September will showcase the progress made and the current program being implemented. Alternative measures have already been taken to address the slight decrease in income levels. Overall, the economic process is being successfully implemented in the country, though it may take some more time for the people to feel its effects.

As a government, we are committed to advancing this program. Any opposition or attempts to destabilize the political and social stability established can have consequences worse than those experienced during the weak economy of the previous year. Despite short-term challenges, we need everyone’s support to steer the country onto a new path, ensuring a clear future and preventing similar crises from occurring again.

Two groups exist in the country: one that capitalizes on the people’s suffering during the economic crisis to advance their political goals, and another that genuinely supports the government’s efforts to overcome the crisis. Some individuals attempt to spread misinformation and false news. As a government, we strive to provide accurate information based on correct data and statistics to enable people to make informed decisions.

Source: PMD

The Colombo Chief Magistrate today reported State Minister of Tourism Diana Gamage to the court of appeal for the offence of contempt of court.

The magistrate in an order delivered today said that Gamage’s statement to a local TV station claiming that an order of the magistrate was leaked before it was delivered was a deliberate act of contempt.

This was after Counsel Hafeel Farisz made submissions regarding the statement by Gamage alleging that his client Oshala Herath published the order before it was delivered.

On April 24 the Magistrate made an order saying that there was sufficient evidence for the Criminal Investigations Department to arrest Gamage for violating the Immigrants and Emigrants Act.

Farisz said Gamage’s statement was made to influence the court of appeal which was due to deliver judgement in a matter regarding her Parliamentary seat on June 6.

An Officer in Charge of the CID S. Senarathne told the court that his investigation revealed that the order of the magistrate was not leaked to the media.

Magistrate Prasanna Alwis said that the statement was a blatant act of contempt and only the court of appeal could impose the punishment her statement deserves.

The All-Ceylon Bakery Owners’ Association has reduced the price of a 450g loaf of bread and other bakery products by Rs. 10 each.

The price reduction comes into effect at midnight today (June 20).

President Ranil Wickremesinghe has held discussions with the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva on the sidelines of the “Summit for a New Global Financial Pact” held in Paris, France.

Commenting on the meeting, Kristalina Georgieva welcomed the strong ownership by the Sri Lankan government to address the current economic challenges.

Taking to Twitter, she further stated that the IMF is committed to supporting Sri Lanka’s economic reforms to improve living standards for its people.

The Indian naval submarine ‘Vagir’, the latest indigenous Kalvari-class submarine of the Indian Navy, on June 19, began its four-day visit to Sri Lanka at the same time a Pakistan naval ship docked here.

The Indian High Commission said its operational visit is to commemorate the ninth edition of International Day of Yoga (IDY) under the theme of “Global Ocean Ring”.

The Commanding Officer of the Indian Naval submarine, Commander Divakar. S will call on Commander Western Naval Area, Rear Admiral Suresh De Silva. Further, during the submarine’s visit, the vessel would be open for visitors and school children.

The High Commission of India in coordination with Swami Vivekananda Cultural Centre is scheduled to organize a grand event at Colombo Port to celebrate IDY on 21 June 2023 with the participation of senior defence hierarchy and personnel from Indian and Sri Lanka Navies, the mission said in a press release.

The Indian naval ships Delhi, Sukanya, Kiltan, and Savitri have previously visited Colombo.

Visits by Indian Navy ships and submarines in Sri Lanka aim to foster brotherhood and togetherness between the two neighbouring navies in keeping with India’s vision of ‘Neighbourhood First’ policy and ‘Security and Growth for all in the Region (SAGAR)’, the release said.

Meanwhile, the Sri Lankan Navy said ‘Tippu Sultan’, the Pakistani naval ship, also arrived at the port of Colombo on June 18 on a two-day visit.

‘Tippu Sultan’ is a 134.1 metre-long warship manned by a crew of 168 persons, the Navy said.

The Navy said this is the first visit to Colombo by a submarine since a Chinese submarine docked in 2014.

Source – PTI

The lawyers representing controversial Sri Lankan Pastor Jerome Fernando today withdrew the writ petition filed seeking an order to prevent his arrest by the Criminal Investigations Department (CID).

Pastor Jerome Fernando is wanted by the Sri Lanka Police after allegedly having made derogatory statements related to Lord Buddha, Islam, and Hinduism in front of a packed congregation.

Video footage of his remarks had caused an uproar among the followers of Buddhism in the country. Following the uproar, Pastor Jerome Fernando issued an apology regarding his controversial statement.

The Criminal Investigations Department (CID) obtained a travel ban against Pastor Jerome Fernando from the Fort Magistrate’s Court on May 15, but it was revealed that the pastor had left the country the previous day.

Pastor Jerome Fernando, thereafter, filed a Fundamental Rights (FR) petition requesting the court to issue an order preventing his arrest by the CID.

Last week, the Court of Appeal was informed by the Attorney General that an investigation has been launched against Pastor Jerome Fernando under the Prevention of Money Laundering Act.

Former Foreign Minister Rohitha Bogollagama appointed as Sri Lanka’s High Commissioner to the United Kingdom (UK) with effect from 01 August 2023.

He had served as the Cabinet Minister of Foreign Affairs from 28 January 2007 until he was defeated in the General Elections held on 8 April 2010, losing his seat in parliament.

Bogollagama also briefly served as the Governor of the Eastern Province from July 2017 to December 2018.

President Ranil Wickremesinghe has called on the Commonwealth Secretary-General, Patricia Scotland during his official visit to the United Kingdom.

The focus of the discussion fell on the digitization programs, measures to broaden the Commonwealth’s partnerships, as well as Commonwealth programs such as Commonwealth for Climate and Blue Charter to enhance support to member countries.

Sharing his strategies for addressing climate change, Sri Lankan president also explored the potential involvement of the Commonwealth in these efforts.

The meeting happened at the Marlborough House – the headquarters of the Commonwealth of Nations and the seat of the Commonwealth Secretariat – in Westminster, London.

Wheat flour has been listed under the category of ‘specified goods’, by way of an Extraordinary Gazette notification issued by the Minister of Trade, Nalin Fernando.

Accordingly, wheat flour was brought under the category of specified goods with effect from midnight on 16 June, as it is an essential commodity to the people.

This has been prescribed under Section 18 of the Consumer Affairs Authority Act No. 09 of 2003 (Amended).

Meanwhile, Liquefied Petroleum (LP) gas, which was included as a specified good by way of a Gazette published on 08 July 022, will be excluded from the list of Specified Goods.

Former Colombo Municipal Councilor Mahinda Kahandagama has been arrested by the Colombo Frauds Investigation Division on charges of defrauding an individual.

He is alleged to have obtained Rs. 7 million from an individual with the promise of providing an apartment in a housing complex in Colombo 02.

Kahandagama was produced before the Colombo magistrate’s court and has been remanded until 22 June, the Police said.

Sri Lankan Dev Kawsala Samarajeewa’s entry has won the ‘women in aviation multimedia engagement contest’ organized by the International Civil Aviation Organization (ICAO).

Samarajeewa overcame challenges by 11 other finalists from France, Philippines, Argentina, USA, Turkey, Slovenia, Ireland, Serbia, Kenya, Canada and Seychelles in an online selection process.

His entry secured 28,000 likes, while entries from Argentina with 4,800 likes and Turkey won the second and third places respectively.

Samarajeewa will receive an invitation and financial support to attend the Global Aviation Gender Summit scheduled to take place from 5 to 7 July, as well as a certificate of acknowledgement.

His entry secured 28,000 likes, while entries from Argentina with 4,800 likes and Turkey won the second and third places respectively. Samarajeewa will receive an invitation and financial support to attend the Global Aviation Gender Summit scheduled to take place from 5 to 7 July, as well as a certificate of acknowledgement.