NPP News

(-Colombo, January 22, 2025-)

Today (22) morning, a meeting was held between US Ambassador Julie Chung and JVP General Secretary Tilvin Silva at the JVP Head Office.

The current social and political situation in the country, the ‘Clean Sri Lanka’ program and ways in which the United States can support it were discussed at length.

The US Embassy’s Political Officer Adam L. Michelo and Political Affairs Specialist Nasir Marikkar were also present on this occasion. On behalf of the JVP, its International Affairs Committee Member and Attorney Madhu Kalpana also joined.

(-Colombo, January 21, 2025-)

Today (21) British High Commissioner Andrew Patrick met with JVP General Secretary Tilvin Silva at the JVP Head Office.

At this event, the country’s current social and political situation was discussed in detail.

The British High Commission’s First Secretary for Political Affairs, Tom Soper, and Advisor Insaf Baqir Marker also attended the event. JVP International Division Committee Member and Lawyer Madhu Kalpana also participated on behalf of JVP.

(-Colombo, January 14, 2025-)

The Thai Pongal festival, also known as the “Harvest Festival,” is observed with profound reverence by Tamil and Hindu communities worldwide. This significant occasion is dedicated to expressing gratitude to the Sun, the Earth, rain, and cattle for their indispensable contributions to a bountiful harvest. This festival is celebrated on the first day of the month of “Thai” according to the Tamil calendar. The festival marks the commencement of the Sun’s northward journey, referred to as “Uttarayana.” Beyond its agricultural significance, Thai Pongalembodies the spirit of renewal and symbolizes the values of harmony and coexistence within human society, both internally and externally.

This celebration signifies not only a pivotal shift in direction but also underscores the importance of harmonious coexistence—both within society and with the environment. At a time when Sri Lanka has embarked on the transformative “Clean Sri Lanka” initiative, aimed at fostering ecological and ethical progress, the values symbolized by Thai Pongal align profoundly with the objectives of this initiative, reflecting the inseparable bond between humanity and nature.

Thai Pongal serves as a source of cultural rejuvenation, instilling renewed hope and inspiration in our collective lives. As we embrace the New Year with renewed vigor and aspirations for a “beautiful life,” we are presented with a significant opportunity to collaborate toward building an environmentally conscious and culturally enriched society. By prioritizing sustainable development and championing lasting peace and unity, we reaffirm our commitment to leading with integrity, resilience, and an unwavering dedication to fulfilling our responsibilities to the nation and its people.

I invite everyone to come together with a shared sense of purpose and commitment to ensure the prosperity and well-being of our nation, cherishing the joy and happiness that enrich the lives of all Sri Lankans. May this Thai Pongal celebration be a blessing and a guiding light, inspiring hope and optimism for a brighter future.

I extend my heartfelt wishes to all Sri Lankans and Hindu devotees around the world for a prosperous and joyous Thai Pongal, filled with gratitude, harmony, and abundance!

Anura Kumara Dissanayake

President

Democratic Socialist Republic of Sri Lanka

January 14, 2025

(-Colombo, January 12, 2025-)

A 5-acre plot of land in the Bloemendhal area has been allocated to store containers under investigation

Private companies involved in port-related services have agreed to ensure the efficient deployment of clerical staff for smooth operations

President Anura Kumara Disanayake, during a meeting held today (12) at the Presidential Secretariat with representatives from Sri Lanka Customs and port-related service providers, reached several important agreements aimed at resolving the ongoing delays in the clearance of imported containers. The President instructed officials to take immediate action to eliminate the delays within the next four days. He also engaged in detailed discussions about the issues faced by state institutions, including Sri Lanka Customs, as well as the challenges encountered by port service providers. While emphasizing the necessity of implementing short-term, medium-term, and long-term plans for port sector development, the President underscored the urgent need for a joint effort by all parties to address the current crisis. As a result, both public and private sector stakeholders agreed to work together towards an immediate resolution.

To expedite the clearance process, Sri Lanka Customs officers agreed to operate continuously, 24 hours a day, seven days a week. Additionally, a 5-acre plot of land in the Bloemendhal Disanayake area was allocated for storing containers pending investigation, with plans to release 2 acres by January 31 and the remaining portion by February 28. Addressing the issue of congestion caused by idle container vehicles at port terminals, the government agreed to provide land in the Peliyagoda area for parking these vehicles, thereby easing the traffic at the terminals.

Further, delays caused by regulatory agencies such as the Sri Lanka Standards Institution (SLSI), the Department of Food Commissioner, and the Plant Quarantine Division were highlighted during the discussion. It was revealed that staff shortages in these institutions were a significant factor contributing to the delays. In response, the President directed the relevant authorities to fill these vacancies promptly and to enhance welfare allowances for the officers of these institutions to ensure a more efficient clearance process.

Minister of Transport, Highways, Ports, and Civil Aviation, Bimal Ratnayake, stated that if there are any financial requirements related to this process, they can be provided by the Ministry of Ports. Additionally, private associations requested the President to take disciplinary action against clerical staff who fail to report for duty on time during the container clearance process. The Minister further emphasized that it is the responsibility of the respective private companies to ensure that their employees report to work promptly.

Importers agreed that food-related products must be accompanied by mandatory certificates issued by foreign laboratories following proper testing, and in the event of any violations, appropriate legal action will be taken in accordance with government regulations. A decision was made to reduce the period during which containers can be stored within the port premises without charge to two days. Furthermore, it is anticipated that this period will be further reduced to one day starting from June.

Minister Ratnayake also noted that this expedited clearance process would continue until June 30 and stressed the need for all stakeholders, including the port, customs, and private service providers, to work together as one unified team.

The meeting was attended by the Minister of Labour and Deputy Minister of Economic Development, Professor Anil Jayanta Fernando; Secretary to the President, Dr. Nandika Sanath Kumanayake; Senior Additional Secretaries to the President, Russell Aponsu and Kapila Perera; officials from Sri Lanka Customs, Sri Lanka Ports Authority, and Sri Lanka Standards Institution; officers from the Department of Food Commissioner; representatives from the Association of Sri Lankan Shipping Agents, the Association of Container Operators, and the Association of Container Transporters; as well as officers involved in import and export clearance operations.

(-Colombo, January 01, 2025-)

The parliamentary elections of 2024 enabled us to establish a government with a strong majority, earning the trust of people across the North, East, West, and South. With this mandate, we have initiated a transformative political shift, fulfilling our democratic responsibilities to build the good governance our citizens aspire to.

Our primary developmental goals include eradicating rural poverty, implementing the “Clean Sri Lanka” initiative, and building a digital economy. The “Clean Sri Lanka” initiative, launched alongside the New Year, aims to uplift society to greater heights through social, environmental, and ethical revival.

In 2024, we achieved significant economic stability as a nation. With this progress as our foundation, we move forward in 2025 with renewed vision and determination, working towards creating a prosperous nation and ensuring a beautiful life for everyone. I firmly believe this moment marks an exceptional opportunity to inspire new ideals and foster greater unity for the benefit of all.

For the first time in Sri Lanka’s history since independence, we now have the chance to make the dream of a united and developed nation a reality through people-centered governance. This unparalleled responsibility rests upon all of us, and we fully understand its importance. In 2025, with courage and unwavering commitment, we will strive to regain the victories missed in the past century and bring these dreams to fruition.

Wishing everyone a Happy New Year filled with prosperity, unity, and renewed hope as we strive for peace and progress together.

Anura Kumara Dissanayake

President

Democratic Socialist Republic of Sri Lanka

01st January, 2025

(-Colombo, December 26, 2024-)

– Debt Restructuring Completed

– Relief Packages Rolled Out for Small and Medium-Scale Entrepreneurs

– Safeguarding the Well-Being of Low-Income Earners

A press briefing on the economic stabilization process and the proposed relief packages for the public was held today (26) at the Presidential Media Center (PMC).

Minister of Labor and Deputy Minister of Economic Development, Dr. Anil Jayantha Fernando, along with Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma, attended in the briefing.

The media statement released during the press briefing is as follows:

Press Statement on the Economic Stabilization Process and Relief Packages to people.

1. Economic Stabilization

Economic stabilization is key to take the country out of abyss created by past regimes. At the time the government assumed office those who are responsible for the crisis had unilaterally suspended external debt servicing in April 2022, entered into IMF program for Extended fund facility (EFF) of approximately USD 3 billion over a period of 4 years to be received in 8 installments, and paddled through the IMF program and debt restructuring process connected to in in line with debt sustainability analysis connected to it. The delayed and complex nature of the debt restructuring process incurred additional costs to the country and created additional burdens on the people. However after, considering both pros and cons of the context prevailed at that time in terms of social, political and economic perspective, the government proceeded with the options in the best interest of the people of the country.

Accordingly, it was possible to reach the staff-level agreement of the third review on 26th November 2024, in line with the program parameters, and government revenue measures with appropriate engagement, and timely facilitation. In the lead-up to the board approval from the IMF, the government is engaging with necessary stakeholders to obtain the next tranche of the EFF.

Debt Restructuring

It consists of both domestic and external restructuring. Domestic debt restructuring was completed in July 2023. External restructuring excludes multilateral creditors on various ground and arguments. The rest consists of official bilateral debt and private ISB holders.

Bilateral Debt

The bilateral debt is delt with the Official Creditor Committee (OCC) co-chaired by France, India and Japan representing 17 countries, China Exim Bank, China Development bank, other official creditors (Kuwait, Saudi Arabia, Iran and Pakistan) and other commercial creditors.

OCC had agreed to the terms and conditions in June 2024 and the loans with China Exim bank had already been restructured in October 2023 within the agreed framework, ensuring comparability of treatment (CoT). Except the other official creditors (Kuwait, Saudi Arabia, Iran and Pakistan) accounting roughly USD 300 million representing about 1% total external debt subject restructuring , all other bilateral creditors have already agreed for restructuring within the agreed framework.

ISB Creditors

Much delayed ISB restructuring had passed several stages of negotiations with agreements, disagreements, changes to proposals, adjustments in line with DSA and IMF consents, had finally agreed in principle (AIP) on 19 September 2024 just two days prior to the presidential election. Ad Hoc Group (AHG) and Local banking consortium represent ISBs which account for USD 14.2 billion including a past due interest of USD 1.7 billion.

By prioritizing and facilitating actions in a timely manner, the new government has demonstrated a strong political commitment to steering the country toward economic stability. These efforts toward financial stability have been independently acknowledged by third parties, including rating agencies which have upgraded the ratings by several notches, which was only possible due to the correct prioritization and implementation of economic stabilization measures. Hence, the government continued with the restructuring process and facilitated it to ensure the successful completion of the issuance of new bonds for the exchange of existing ones on 20th December 2024 in order to achieve the critical objective of stabilizing the economy in pursue of navigating the country with the growth and development trajectory towards a thriving nation and beautiful life.

2. SME Sector Facilitation

2.a.1. Parate Extension

Instead of merely postponing the Parate execution date, the government engaged with stakeholder groups to ensure acceptable solutions was found for this long-standing issue. As a result, the Parate execution has now been extended until 31st March 2025.

2.a.2. Relief Package

The relief for businesses is not only in the form of an extension of time. Based on data provided by the Central Bank, 99% of borrowers with outstanding capital of less than 25 million rupees in restructured loans have been granted a 12-month extension to renegotiate with banks and agree on a settlement path. Borrowers with debts between 25,000,000 and

50,000,000 rupees have been granted a 9-month extension, while all other borrowers are entitled to a 6-month extension. This relief package, proposed by the government and to beimplemented through the Central Bank, also includes several other important measures, such as easing the credit rating status, extending the repayment period, offering low interest rates for restructured debt, and providing a transparent mechanism to resolve valuation disputes.

This package aims to ensure that the SME sector can actively contribute to the economy.

2.b. School Stationery Assistance for School Children

2.b.1. Children in the Aswesuma Families

To ease the burden on parents from vulnerable groups in society, Rs. 6,000 per child has been allocated to purchase essential school books and stationery for the upcoming school term. Children from Aswesuma recipient families will begin receiving this benefit shortly.

2.b.2. Children Not Receiving Aswesuma

Children from families who are not currently receiving Aswesuma but are facing economic hardship will also be provided with this benefit, based on recommendations from the Ministry of Education. It is expected that the process will be finalized soon, and the disbursement scheme will start within a few days, ensuring that all deserving children facing economic hardship receive assistance.