Judiciary

Refer statements made by Nivad above,  in his defence makes interesting reading

22. The 7th Respondent states that the decision to default on 12th April 2022 was highly suspicious, irrational, arbitrary, illegal, and wrongful and it is inexplicable that it had been hastily carried out in view of the fact that, by end March 2022, the pipeline” of expected forex inflows showed a healthy position which had obviously been recklessly and callously disregarded.

That pipeline” of expected inflows is given below:

23. The 7th Respondent states that the sudden default” announcement of 12th April 2022, completely disrupted all the above expected inflows, with the possible exception of the roll-over of the India and Bangladesh SWAPs that had been previously negotiated. In fact, the Chinese Ambassador in Sri Lanka has specifically alluded to this situation as well. Of the above pipeline, a sum of USD 4,500 mn was confirmed as being in the final stages by 3rd April 2022, and a further amount of about USD 2,650 mn was very likely to materialize over the short term, which would have enabled the Government to settle the maturing payments due in 2022, while also rolling over several other existing loans, including Sri Lanka 8 Development Bonds and FCBU loans. Hence, the decision to default payment was inexplicable and utterly reckless. That irresponsible and illegal decision plunged Sri Lanka into a serious chasm of economic and financial isolation as a bankrupt” nation, with the consequential severely damaging repercussions due to haunt the nation for many years to come. 24. The 7th Respondent states that, as set out in the table above, Sri Lanka was on the verge of receiving a significant inflow of funds of USD 1 billion and access to a trade loan of USD 1.5 billion from China that were expected to materialize towards the latter part of April 2022 or early May 2022. These inflows were officially announced by both the Chinese Ambassador in Sri Lanka on 21st March 2022 (True Copies of the Documents evidencing the aforesaid are marked as Annexes 7R1(a)”, 7R1(b)”, 7R1(c)” & 7R1(d)” and pleaded as part and parcel of these Limited Statement of Objections) and subsequently re-confirmed by the Sri Lanka Ambassador in China on 12th April 2022. (True Copies of the Documents evidencing the aforesaid are marked as Annexes 7R2(a)”, 7R 2(b)”, 7R2(c)”, 7R2(d)” & 7R2(e)” and pleaded as part and parcel of these Limited Statement of Objections). At the same time, negotiations were at an advanced stage on the Indian line of credit for a further USD 1 billion for goods, and USD 500 million for oil, as well as a further financial accommodation of about an additional USD 500 million by the Reserve Bank of India through the postponement of the Asian Clearing Union (ACU) settlements. That is why it is inexplicable as to why a hasty decision was taken to announce the sudden debt default” and non[1]payment of all forex debt and interest (including the July 2022 USD 1,000 mn International Sovereign Bonds ISB) from 12th April 2022 onwards, and thereby risk major adverse consequences, together with a massive cross-default” as well.

Economic wizards at that time

PASKARALINGAM, Coomaraswamy, Harsha De Silva And of course the PM/ President at that time.  (2015-19)

Effects of economic action now will take a couple of years to materialise, or show it’s effects (good or bad)

Source Central Bank

Read Full Affidavite

https://www.lankaweb.com/news/items17/Affidavite-Final-1.pdf