NPP News

(-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.

(-Colombo, December 25, 2024-)

Christmas, the day that marks the birth of Jesus Christ, is celebrated with great reverence by Christians worldwide. Jesus Christ, who came into this world to bring salvation to all, saw no divisions among people, be they rich or poor. His birth among humble shepherds, and the divine message delivered to them by angels, underscores the profound truth that Christmas calls us to transcend divisions and act with unity, peace, and humanity.

Today, as a nation, we stand at a pivotal moment, united in our shared commitment to the future. We are witnessing the dawn of a new era for our country, one illuminated by the message of love and unity brought by Jesus Christ. Transforming our nation into a land where peace reigns and divisions are replaced by mutual understanding is a journey we are on together. Jesus Christ’s life, rooted in the pursuit of human freedom and justice, serves as an enduring inspiration for our work today.

Today, Sri Lanka stands at a crossroads, requiring a transformative social revival. This is a call for a collective national renewal, a shift towards a just, compassionate, and equitable society. It is a moment for us to unite, acting with determination, resilience, and courage, to achieve the shared vision of a prosperous nation and fulfilling lives for all.

Although society often compels us towards selfish competition, let us embrace the virtues of humanity this Christmas with empathy, respect for equality, fraternity, and coexistence. By fostering these values, we can work towards a society that thrives on mutual care and collective joy.

This Christmas, let us pledge to build a strong, stable economy, ensure social justice, and uphold a political culture rooted in democracy and integrity. Together, with firm resolve, we can create a beautiful nation filled with humanity and freedom.

May all Christians in Sri Lanka and across the world have a blessed and joyful Christmas!

Anura Kumara Dissanayake

President

Democratic Socialist Republic of Sri Lanka

23rd December, 2024

#presidentAKD#PMD#christmas2024

(-Colombo, December 23, 2024-)

A high-level discussion on the critical preparations for Sri Lanka’s upcoming Mutual Evaluation (ME) by the Asia/Pacific Group on Money Laundering (APG) was held today (23) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake .

The meeting focused on preventing money laundering and countering terrorism financing (AML/CFT) and included participation from cabinet ministers, ministry secretaries, officials from the Central Bank of Sri Lanka, and the Financial Intelligence Unit (FIU).

The FIU highlighted the urgent implementation of cabinet-approved action plans involving 24 key institutions, including regulatory bodies and law enforcement agencies. These plans prioritize legal reforms, capacity building, enhanced inter-agency cooperation, and maintaining comprehensive records to meet the Financial Action Task Force (FATF) recommendations effectively.

President Disanayake directed the establishment of dedicated teams to ensure compliance and closely monitor progress. He emphasized the importance of collaboration and accountability in strengthening Sri Lanka’s AML/CFT framework.

He underscored the need for a robust and effective system to secure favourable evaluation outcomes, maintain financial stability, and bolster international confidence in the country’s economy.

Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma and Secretary to the President Dr. Nandika Sanath Kumanayake also attended at the meeting.

(-Colombo, December 17, 2024-)

Prime Minister Dr. Harini Amarasuriya stated in Parliament today (17) that the injustice done to religious traditions and to the people by cremating those who lost their lives to the COVID-19 pandemic cannot be justified.

The decision made by the previous government is completely unjustifiable. It was an extremely insensitive and cruel decision. The traditions followed after a death allow families to express their grief and alleviate their suffering. This is why such rituals hold religious significance.

These traditions are particularly important in uncertain times like the COVID pandemic. We cannot condone such a cruel decision during such a time. No political or other justification can make it acceptable. It was unfair to make such a decision without any scientific basis. Therefore, our government will never again make any decision that causes such suffering to any group or disrespects religious traditions.

If such an incident occurred, we believe it was a decision made by officials based on the prevailing political culture. We will work to change that culture. We emphasize that we will not allow officials to make decisions that will cause harm to the people again. We acknowledge that justice must be served to those affected by this, and we are ready to discuss how to address this issue.

(-Colombo, December 17, 2024-)

Her Excellency Ms. Qin Boyong, Vice-Chairwoman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) at the Vice Premier level, paid a courtesy call on Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, at the Parliament of Sri Lanka.

The Prime Minister welcomed Ms. Qin Boyong and her delegation, appreciating the longstanding friendship and underscoring the importance of strengthening bilateral relations. Strengthening cooperation in disease control, sustainable developments, improving trade and cooperation in multilateral forums were discussed further.

Senior officials present included H.E. Qi Zhenhong, Ambassador of China to Sri Lanka; Mr. Pradeep Saputhanthri, Secretary to the Prime Minister; Ms. Sagarika Bogahawatta, Additional Secretary to the Prime Minister; Ms. S. Vijitha Basnayake, Media Secretary to the Prime Minister; Ms. Ruwanthi Delpitiya, Director-General for East Asia; and Ms. Udani Gunawardena, Director of the East Asia Division at the Ministry of Foreign Affairs.

(-Colombo, December 17, 2024-)

Your Excellency Droupadi Murmu, President of the Republic of India,

Your Excellency Narendra Modi, Prime Minister of the Republic of India,

Honourable Ministers, Distinguished Guests, Ladies, and Gentlemen,

Ayubowan, Vanakkam, Namaste, Good evening,

I am deeply touched, Madam President, by your gracious sentiments.

Permit me to express my sincere appreciation to you, the Government, and the people of India for the gracious hospitality accorded to my delegation and me in your country. I bring with me warm greetings from the people of Sri Lanka to our Indian friends.

Excellency,

The bonds between Sri Lanka and India transcend diplomacy and geographical proximity. Our relationship is civilisationally linked and defined by mutual respect, cooperation, and a shared destiny. From the shores of the Indian Ocean to the heart of the Subcontinent, we are bound by a common heritage of tradition, values, and even a vision for the future, inherent in our countries’ robust relations. Therefore, undertaking my first-ever State Visit to India is only natural.

My administration remains committed to further strengthening this age-old relationship. India has been a trusted friend, steadfast partner, and our closest neighbour, whose unstinted support has been pivotal in my country’s journey towards economic recovery, growth, and stability. India’s assistance to Sri Lanka in times of need and its unwavering solidarity are deeply cherished.

As Sri Lanka stands on the threshold of a new era, it is important to further strengthen its economic ties, enhance people-to-people connections, and advance regional and global cooperation. The future holds immense potential. The role of our two countries in ensuring peace, stability, security, and sustainable development in the Indian Ocean region is of paramount importance.

The strength of our partnership lies in collective action. It is through collaborative efforts that we can address the new and evolving challenges that transcend borders, whether they be in addressing environmental concerns, combating terrorism, or ensuring economic growth that benefits all citizens globally. Sri Lanka remains committed to fostering deeper cooperation with India, as a leader of the global South, to harness the opportunities of the 21st century for future generations to thrive in an interconnected and interdependent world.

Excellency,

Let this evening be a celebration of the enduring friendship between our two nations—a bond that has withstood the test of time and continues to flourish, bringing us closer together in the pursuit of peace and progress.

To the Government and people of India, I extend my deepest appreciation for the unwavering support and friendship. May our cooperation continue to grow stronger, and our shared journey brings prosperity to our nations and the entire region.

Thank you.