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SL thanks India, key bilateral creditors for finalising $10 billion debt deal

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SL thanks India, key bilateral creditors for finalising $10 billion debt deal

Colombo, June 26 (IANS) With a major move to turn around the country’s worst-ever financial crisis, Sri Lanka President Ranil Wickremesinghe thanked India and other key bilateral creditors for finalising a debt restructuring deal valued at a combined $10 billion.

“I extend my gratitude to our creditors, including China and Exim Bank of China, India, Japan, and France, who co-chair the Official Creditors Committee,” President Wickremesinghe said in a televised address on Wednesday night.

The debt structuring deal allows Sri Lanka to defer all bilateral loan instalment payments until 2028 and also to repay all the loans on concessional terms, with an extended period until 2043, President Wickremesinghe said.

In a major step to rebound from bankruptcy, Sri Lanka on Wednesday concluded negotiations with the Official Creditor Committee (OCC) co-chaired by India, Japan, France and China Exim Bank.

The other members of OCC include Australia, Austria, Belgium, Canada, Denmark, Germany, Hungary, Korea, the Netherlands, Russia, Spain, Sweden, the UK, and the US.

“Each creditor, including the OCC and China Exim Bank, agreed to extend maturity periods, initiate capital grace periods, and reduce interest rates significantly. These measures collectively alleviate Sri Lanka’s near-term debt service obligations, freeing up resources for essential public expenditures crucial for economic stabilization and growth,” announcing the success of much-awaited debt restructure negotiation, the President’s Media Division (PMD) said.

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“This restructuring provides up to 92 per cent relief on debt service payments during the IMF program, offering substantial fiscal breathing room crucial for prioritizing public services and stimulating economic growth,” the PMD stated.

As the Sri Lanka President announced the finalizing of debt restricting negations, India’s External Affairs Ministry congratulated Sri Lanka for signing the agreement with the OCC.

“We congratulate the Government of Sri Lanka for the signing of the MoU between the Official Creditor Committee & Sri Lanka on debt restructuring. This signifies the progress made by Sri Lanka in its economic stabilisation & recovery,” Ministry of External Affairs (MEA) announced

“India is steadfast in its commitment to Sri Lanka’s growth and prosperity, demonstrated by the unprecedented assistance of $4 billion as well as the role played by India as the co-chair of the OCC,” Randhir Jaiswal, Official Spokesperson, Ministry of External Affairs, India wrote in a post on social media platform X.

“This milestone demonstrates the strong progress made by Sri Lanka in stabilizing its economy and moving towards reform and growth. As one of the Co-Chairs of the OCC, along with France and Japan, India has been steadfast in its commitment to the stabilization, recovery and growth of the Sri Lankan economy,” the Indian High Commission in Colombo said in a statement.

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“This was also demonstrated by India’s unprecedented financial support of USD 4 billion to Sri Lanka. India was also the first creditor nation to convey financing assurances to IMF which paved the way for Sri Lanka to secure the IMF program,” it stated.

After the IMF approved the Extended Fund Facility (EFF Program) for Sri Lanka on March 20, 2023, the OCC was launched in April 2023 to hold talks among Sri Lanka’s bilateral creditors including India to finalize a plan for restructuring Sri Lanka’s debt.

“India will continue to support Sri Lanka’s economic recovery including by promoting long-term investments in its key economic sectors,” the High Commission assured.

In his address to the nation, President Wickremesinghe said that the agreements would provide significant relief to the country’s economy.

“In April 2022, Sri Lanka officially declared its inability to meet its debt obligations. Following this declaration, international business transactions with Sri Lanka came to a halt. No country is willing to engage in financial relations with a nation that is bankrupt and unable to pay its debts. Consequently, we were unable to secure loans or even obtain letters of credit. Against this backdrop, all projects in our country funded by foreign loans were halted,” President Wickremesinghe described.

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He said that with the achievement of the crucial milestone in debt restructuring, there are legal opportunities for these countries to resume all projects funded by foreign loans.

“Projects such as the development of Katunayake Airport, the light railway, and the expressway are set to recommence. Moreover, we can look forward to initiating many new development projects,” he assured.

He said that international confidence in Sri Lanka is reaffirmed as bilateral creditors have reached an agreement, serving as a kind of international endorsement.

“The global community, which previously refused to accept our letters of credit, is now prepared to grant us a certificate of confidence,” the President said.

After the global economic crisis followed by the Covid-19 pandemic, Sri Lanka’s economy came to a standstill with no basic needs including food, medicine, fuel, and cooking gas.

In April 2022, Sri Lanka declared bankruptcy announcing its inability to meet its debt obligations. India immediately came to rescue its southern neighbour by supplying food, fuel, medicine and other financial facilities worth more than $4 billion.

–IANS

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Lee Hsien Yang seeks refuge in United Kingdom

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Lee Hsien Yang, the youngest son of Singapore’s founding father, the late Lee Kuan Yew, announced on Tuesday that he is now a political refugee in the United Kingdom after seeking asylum from the British government “as a last resort.”

“I remain a Singapore citizen and hope that someday it will be safe to return home,” Lee stated in a Facebook post, as reported by Channel News Asia (CNA).

Citing what he described as the Singapore government’s “attacks” against him, Lee, who is the younger brother of former Prime Minister Lee Hsien Loong, revealed that he sought asylum protection in 2022.

Lee Hsien Yang and his late sister, Lee Wei Ling, who passed away earlier this month, have been in conflict with their brother Lee Hsien Loong over the fate of their father’s home following his death in 2015, resulting in a public dispute that has estranged the siblings.

In an interview with the UK-based newspaper The Guardian, Lee alleged that a “campaign of persecution” compelled him to seek asylum in Britain.

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In response to his claims, the Singapore government stated that there is “no basis” for his allegations of “a campaign of persecution” or other assertions regarding political repression in the country.

“Singapore’s judiciary is impartial and makes decisions independently. This is why Singaporeans have a high level of trust in the judiciary,” a government spokesperson remarked.

The spokesperson added that there are no legal restrictions preventing Lee and his wife, lawyer Lee Suet Fern, from returning to Singapore. “They are and have always been free to return to Singapore,” the spokesperson said.

Lee and his wife have been outside of Singapore since 2022, having opted not to attend a scheduled police interview regarding potential offenses related to providing false evidence in judicial proceedings concerning their father’s will and the family home.

Lee and his late sister, who had been living at the property, alleged they felt threatened while trying to fulfill their father’s wish to demolish the house. They also accused their elder brother, former Prime Minister Lee Hsien Loong, of abusing his governmental influence to advance his personal agenda.

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Indo-Russian ties are stronger than ever before at BRICS

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Kazan, Russia: Prime Minister Narendra Modi held a bilateral meeting with Russian President Vladimir Putin on the sidelines of the 16th BRICS Summit.

During the meeting, President Putin remarked, “I recall our meeting in July, where we had productive discussions on various issues. We’ve also spoken over the phone several times. I am very grateful you accepted the invitation to come to Kazan. Today, we will attend the BRICS Summit’s opening ceremony, followed by dinner.”

PM Modi responded by expressing his appreciation, saying, “I sincerely thank you for your friendship, warm welcome, and hospitality. It’s a great pleasure to visit such a beautiful city as Kazan for the BRICS Summit. India shares deep historical ties with this city, and the opening of our new embassy here will further strengthen these connections.”

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Laos seeks to enhance nutrition amid climate change concerns

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Laos seeks to enhance nutrition amid climate change concerns

Laos seeks to enhance nutrition amid climate change concerns

Vientiane (Laos), Aug 22 (IANS) Representatives from the Lao government and development partners have attended a conference here titled “Climate Change and Nutrition in Laos: Intersections and Interventions” to discuss the impact of climate change on nutrition in the Southeast Asia country and potential solutions.

Speaking at the conference, deputy director general of the Department of Hygiene and Health Promotion under the Lao Ministry of Health Viengkhan Phixay, said, “We gather to address a critical and interwoven issue: the impact of climate change on nutrition and how we can work together to tackle these challenges,” Xinhua news agency reported.

The Lao government is actively engaged in this endeavor, with numerous policies and initiatives aimed at addressing both climate change and nutrition, Lao National Television reported on Thursday.

“By leveraging the Scaling Up Nutrition network in Laos, which is led by the government, and supported by civil society, donors, and the United Nations, we have a robust platform to tackle the negative impacts of climate change while improving nutrition and overall health for everyone in Laos,” Viengkham said at the conference held on Monday.

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The conference featured a series of presentations that not only detailed evidence-based research but also introduced innovative tools for measuring and enhancing nutrition under the impact of climate change.

The conference stressed the critical need for integrated approaches to tackle the intertwined challenges of climate change and nutrition, and setting the stage for impactful future collaborations.

–IANS

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One killed, seven injured in shootout in Iraq

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One killed, seven injured in shootout in Iraq

One killed, seven injured in shootout in Iraq

Baghdad, Aug 22 (IANS) A civilian was killed while seven others were injured on Thursday in a tribal shootout in Iraq’s holy Shiite province of Najaf, according to a local security source.

The shootout erupted in the early hours between armed men from the local tribe in the al-Zarga area in northern Najaf, some 160 km south of Baghdad, a local police officer told Xinhua on condition of anonymity.

The clash resulted in the killing of an Iraqi civilian and the injury of seven others, including three Iranian Shiite pilgrims, the source added.

A joint force from the Interior Ministry’s emergency response division and Najaf provincial police arrested 53 gunmen from both sides of the shootout and seized weapons and ammunition, the Interior Ministry said in a statement.

It added that search operations are ongoing to locate additional gunmen and weapons, with more details to be released later.

The incident took place as numerous pilgrims traveled to the city of Karbala to observe Arbaeen, which marks the end of a 40-day mourning period for the killing of Imam Hussein, the grandson of Prophet Muhammad, in the Battle of Karbala in 680 A.D.

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Typically, these pilgrims also visit Najaf as part of their journey to Karbala.

–IANS

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Bangladesh seeks $1 billion budget support from World Bank

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Bangladesh seeks  billion budget support from World Bank

Bangladesh seeks $1 billion budget support from World Bank

Dhaka, Aug 22 (IANS) Bangladesh’s interim government has sought $1 billion from the World Bank as budgetary support.

The call came from the country’s Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan’s meeting with Abdoulaye Seck, the World Bank’s Country Director for Bangladesh and Bhutan, in Dhaka on Wednesday.

He made the plea as the ministry owes more than 2 billion dollars to suppliers in import costs of power and energy, Xinhua news agency reported.

Khan mentioned that the interim government, which was formed with many pressing mandates, is due to settle a $2 billion debt left by the previous government in the power sector.

He said they have already suspended activities under the much-criticized Quick Enhancement of Electricity and Energy Supply Act 2010 and abolished the government’s power to set energy prices without any public hearing.

On August 5, the former Prime Minister of Bangladesh, Sheikh Hasina, was ousted from her country and power, ending her rule since January 2009.

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This event was seen as a massive escalation, with what initially started as student’s protests and resulted in a major crisis in Bangladesh.

Earlier on August 8, Nobel laureate Muhammad Yunus took oath as the head of Bangladesh’s interim government.

–IANS

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