Although
the RAB has paid a heavy price in its campaign against terrorists and drug
smugglers, the US has unfairly imposed sanctions against the group.
A
major obstacle to Bangladesh’s progress has traditionally been a volatile law
and order situation, which forced the government to form an elite force to make
the police more dynamic and effective. This is how the Rapid Action Battalion
(RAB) began its journey on March 26, 2004. Its operational activities started
on June 21 that year.
Since
its birth, the RAB has been fighting terrorism and those involved in drug
trafficking. If the United States aims to curb illegal human trafficking and
criminal activity, this is precisely what the RAB is doing in Bangladesh.
After
the verdict in seven murder cases in Narayanganj on January 19, 2017, the US
wanted Bangladesh to abolish RAB, calling it an “in-house death
squad”. The government was criticized for alleged involvement in
extrajudicial killings, torture, and disappearances. Twenty-five members of RAB
have been convicted for the murders in Narayanganj. Of them, 16 were sentenced
to death and nine to various terms of imprisonment.
Due
to this aberration, there is a tendency to underestimate the achievements of
RAB. But its success is more than just a measure of failure. It is also playing
a special role in suppressing traditional crimes.
According
to media reports, RAB has so far arrested 1,200 criminals and rescued more than
1,000 victims of human trafficking. About 16,000 firearms and 2.5 million
rounds of ammunition have been seized from terrorists and arms dealers. Some
13,000 armed terrorists have been arrested. Also, it has taken into custody
more than 500 Sundarbans-centric pirates and bandits.
According
to law enforcement agencies, drugs have been behind many crimes including
theft, robbery, smuggling and use of illegal weapons all over the country
including Dhaka. The RAB has a zero-tolerance policy against drugs.
According
to RAB statistics, the force has arrested about 55,000 drug dealers since May 3,
2016 — and 1.5 lakh since its inception. It has seized drugs worth Rs 3,000
crore including Yaba tablets (most commonly used in Bangladesh), heroin and
phencidyl.
Yaba
is mostly smuggled from Myanmar. Regular operations are carried out against
Yaba traders in and around Cox’s Bazar. Since militants killed 20 people,
including 17 foreigners, in an attack on the Holey Artisan Bakery (Spanish
restaurant) in Dhaka in July 2016, the RAB has played an effective role against
militancy.
According
to RAB sources, it has conducted 241 anti-militant operations since then,
arresting 809 militants and killing 25 in gun battles. In addition, seven
militants have surrendered. All activities of the militants are
monitored.
RAB
Director General Benazir Ahmed said: “We are trying to prevent the
militants from trying to incite people by misinterpreting the Holy Quran and
its verses. We are trying to convey the correct interpretation of various
verses of the Holy Quran to the people.”
The
RAB has paid a heavy price in its campaign against criminals. Twenty-seven
personnel have lost their lives. More than 1,000 have been maimed in various
operations. Another 2,000 have been injured.
Today,
due to the success of RAB’s campaigns, militancy and terrorism have come down
to virtually zero in the whole country. The Sundarbans have been freed from
piracy. No wonder, RAB officials have received various medals and
recognition.
Unfortunately,
the US in December imposed human rights-related sanctions on RAB and seven of
its current and former officials, accusing them of involvement in hundreds of
enforced disappearances and extrajudicial killings since 2009. One of the
sanctioned officers is Benazir Ahmed, the Inspector General of Bangladesh
Police. Most Bangladeshis feel that the US action is wrong.
Colombo, Jan 14 (AdaDerana) – In the context of rising prices of all consumer products and the limited availability of most, the people of Sri Lanka, are faced with two ominous questions about which they are justifiably anxious.
Will there be a scarcity of medicines in the near future in the country and if so, should they be stocking up their regular medications?
Will the price of medicines go up in conjunction with all the other products in the market?
Availability of medicines in the future
At least some sections of the public must be aware that there are shortages of some medicines even at present. This is due to many reasons but the foremost of these is the foreign currency crisis in the country which makes it difficult for banks to facilitate the payments through Letters of credit (LC’s). At present, banks, both state and private sector, allows the Pharma Importers to open LC’s only when they have sufficient dollars to safely guarantee payment for the imports.
Although medicines are given certain priority, there are other items such as essential food items, Petroleum products, fertilizer etc., that have to be given priority as well by the Government. The result is that importing of medicines is now done on the availability of foreign currency and not on the needs of the country or its patients. In this situation, it is inevitable that there will be shortages of more and more medicines as the foreign exchange crisis deepens.
As for stocking medicines in excess of usual treatment regime by patients, it is not advisable to do so for long periods since these products have to be stored under strict conditions specified by the manufacturers. It is doubtful whether such conditions can be maintained in an average household. In addition, bulk or panic buying by the affluent may deprive the less able segment of the population access to medicines they require for a healthy life.
We as an industry will do our utmost to keep the supplies of medicines available uninterrupted, since we fully realize the implications of failing to do so. In this regard, we earnestly hope that the authorities concerned will give us priority in establishing LC’s on time.
It will be also catastrophic in the event if the dollar is allowed to float, which will mean that all medicines will have to be sold at a loss and as such, the entire industry will collapse in the face of such a threat where the importation would obviously stop as the cost of importation will be higher than the approved prices.
There is no solution to this dilemma than removing the price control of medicines and implement a fair and equitable pricing mechanism which will link the price of medicines to the dollar, inflation and direct costs such as raw material, fuel and freight charges, which will make the importing and marketing of medicines viable. As difficult as it may sound, the authorities will have to choose between having medicines at a cost and not having medicines at all.
We as an ethically responsible industry, have already sought the intervention of the courts in order to bring about a transparent pricing mechanism for Pharmaceuticals & Medical Devices that is fair to all. Such a mechanism may be the only salvation for the industry and the patients of the country and it is in the best interest of all concerned if the process is expedited by the authorities concerned by the government.
We would like to give a solemn undertaking to the public that we will do our utmost to see that the drug pricing is fair and equitable. The members of the SLCPI have an exceptional record of maintaining an uninterrupted supply of efficacious, safe & quality medicines at globally competitive prices over many decades while supporting the continuous medical education of the country.
(This press release issued by the Sri Lanka Chamber of the Pharmaceutical Industry clarifying and offering their stance on the availability of pharmaceuticals in the market and the impact the foreign exchange crisis is having on the industry.)
Colonial mansions and chattering monkeys turn up the heat for Brigit Grant in Sri Lanka
There are lots of things one expects to see at breakfast. Cereal boxes. Eggs in cups. Toast in a rack. But a monkey hanging from the branch of a Foxtail palm tree? Now that’s something different. Except it’s not, in Sri Lanka. Tufted grey langur monkeys engaged in a game of chase or clinging to rattans as they swing from palm to palm is morning cabaret at Haritha Villas + Spa and it’s an unmissable petit dejeuner performance.
Sipping freshly-pulped mango juice to the song of the yellow-fronted barbet while deliberating over whether to eat a butter croissant with pineapple jam or tuck into more passion fruit is the toughest choice you have to make at the Haritha. And to think that only a few days earlier, mornings were about beating red lights on the school run while spilling coffee on my coat.
Now, in nothing more than a sarong and a smile, my family and I were guests at a boutique hotel that would charm even the most seasoned resort traveller. No matter how fabulous your last five-star stay was, the Haritha will top it, but it does so discreetly and with such good taste. Perched on a hilltop above the playfully-named seaside town of Hikkaduwa (which means sword of knowledge or seashell jungle depending on who you ask) the property is gasp-worthy and stops you in your tracks soon after you pass through the iron gates and luscious foliage.
Gripped by the heat we so long for at home, Sri Lanka is supposedly cooler from November to March, but with temperatures of more than 26°C in the last weeks of 2021, it’s the kind of ‘cool’ I can live with, particularly when I’ve got my own pool. Yes, I did say my own pool”, which was a mere five steps (I counted) from the heavy wood door of my Colonial Mansion.
Pool at Haritha
In truth the only sensible place to put a family of five with a lot of luggage (Jews don’t travel light) is a Colonial Mansion and, luckily, the Haritha has two, both of which have high-ceilinged majestic adjoining suites containing large four-poster beds dressed with 500 threadcount linen under stylishly-swathed mosquito nets. Around the room, carefully placed glazed figurines, an iPad and state-of-the-art moveable speaker suggest ‘at home’, so I had to remind the family we were not and could only lay claim to the complimentary chic black stationery and toiletries. That the bathroom was outdoors exposed to the elements and visiting striped palm squirrels was a delightful novelty – at least until a Kandyan dwarf toad landed on the face of my step-son’s girlfriend while she was on the al fresco toilet. Despite being a small Indian Ocean island, Sri Lanka is recognised as an amphibian hotspot, with 116 species, 90 percent of which are not found elsewhere on Earth. And occasional toilets.
Al fresco bath
Proximity to wildlife is just another perk while staying at the Haritha, which also has seven independent contemporary villas with saltwater plunge pools. Hidden on leafy shelves beneath the Colonial Mansion, the guests in the other villas are invisible and only seen in the restaurant, which sits beside an infinity pool overlooking rice fields. Having only arrived a month before us, the hotel’s new GM, an ebullient Italian called Umberto Piccolini was as enthusiastic about Haritha we were and, having overseen the openings of hotels in the Maldives and Dubai, knows how to run five-star places. He had also been culinary director at The Four Seasons, so we left it to him to choose our lunch and dinner menus, as well as the wine.
Fish is available on a biblical scale in Sri Lanka and you have your pick of yellowfin and bigeye tuna, along with all the crustaceans the Torah forbids us to eat, but some can’t resist. For those who are not averse to dining at J.Sheekey or Scott’s in London, Sri Lanka offers better quality at a tenth of the price, so make the most of it.
After a fish feast and the sommelier’s skilled wine choices, the heat of the night called for a dip in our phosphorescent lit pool. A few pranks, Lion beers (that’s a brand not the beast) and then delicious silence fell beneath the stars. Even the monkeys were sleeping – but they made it to breakfast before us the next morning, ready to swing.
Haritha Villas is currently offering a two-night stay with breakfast, three-course dinner, private airport transfer and a couple’s spa treatment for 90 minutes from £308 per night.
The Colombo Chief Judicial Medical Officer (JMO) yesterday (12) examined the health condition of SJB MP Patali Champika Ranawaka, as per an order issued by Colombo High Court judge Damith Thotawattavon the previous day.
The JMO was ordered to submit a report, promptly, on the MP’s health condition.
The order was issued after the former Minister failed to appear in court for a case against him and two others Dilum Thusitha Kumara and ASP Sudath Asmadala was taken up for hearing.
The trio have been charged with concealing and fabricating evidence in relation to a traffic accident in Rajagiriya on 29 February 2016, which caused grievous injury to a youth, Sandeep Sampath.
MP Ranawaka was admitted to a private hospital in Colombo after having said to be afflicted with breathing difficulties and kidney ailment, and was discharged following the conclusion of his examination.
Chairman of Litro Gas Lanka Theshara Jayasinghe is reported to have been reappointed several hours after he was removed from the position.
President Gotabaya Rajapaksa is reported to have instructed to reinstate the sacked Chairman following an inspection visit at the Litro Gas Terminal this morning even though the Finance Ministry Secretary has sent the letter of removal.
It was informed that former Housing Development Authority Chairman Renuka Perera was appointed to the position left vacant after Jayasinghe’s removal.(Ajantha Kumara Agalakada)
The High Commissioner of India to Sri Lanka, calling on Central Bank Governor Ajith Nivard Cabraal, has expressed his country’s strong support to the island nation in the wake of the Reserve Bank of India (RBI) extending over USD 900 million facilities over the last week.
These comprise deferment of Asian Clearing Union settlement of over USD 500 million and currency swap of USD 400 million, the Indian High Commissioner said in a tweet.
The Indian envoy has noted that these steps are in line with India’s strong commitment to stand with Sri Lanka for economic recovery and growth.
The daily count of COVID-19 cases recorded in Sri Lanka moved to 594 today (January 13), the Health Ministry said.
According to the Government Information Department, the newly-detected cases include 04 individuals who recently arrived on the island.
The latest development has brought the total number of confirmed cases of coronavirus reported in the country so far to 594,319.
As many as 567,700 recoveries have been confirmed in Sri Lanka since the outbreak of the COVID-19 pandemic.
More than 11,400 active cases in total are currently under medical care and the death toll stands at 15,174, official figures showed.
Meanwhile, the Director-General of Health Services has confirmed 11 more coronavirus-related deaths for January 12, increasing the death toll in the country due to the virus pandemic to 15,174.
According to the official figures released by the Government Information Department, the deaths reported today include 07 males and 04 females.
Three of the patients are between the ages of 30-59 years. The remaining 08 are in the age group of 60 years.
The writer and his partner were invited on 1 January 2022 by Ceylon
oldest living Olympian boxer, retired Deputy Inspector General of Police,
Sumith Liyanage, with some guests. Our conversation at the lunch table
discussed details of Sumith’s career in Sri Lanka’s Police force. During the
1960 Olympics in Rome, Sumith Liyanage fought in the same ring where young
Cassius Clay as an amateur fought earlier in the light heavyweight category. It
was at the Palazzo Dello
Sports arena, and he fought against Poland’s Jerzy Adamski. Sumith Liyanage was
an old Anandian and Nalandian. He showed his liveliness in cricket when he
played for Ananda and Nalanda. He was an opening fiery right-hand bowler, but
his forte was boxing.
Olympics
During New Year’s lunch when the topic of Boxing came up, the writer
asked Sumith Liyanage whether he ever confronted Cassius Clay in the ring
during the Olympics. He answered back with a smile “Had
I ever fought Cassius Clay, then the legendary boxer would have remained
Cassius Clay and I would have ended up as clay! ”
The International press releases indicated how the national
featherweight champion of Ceylon, Sumith Liyanage, fought like a gladiator and
confronted European champion of Poland, Jerzi Adamski with a vicious right
punch in the first round but lost on points. The press releases also wrote that
“If Sumith Liyanage were to win against his opponent, Ceylon would have
shaken up the boxing world!”
Sumith Liyanage was known as the ‘Black Panther’ in the local Media
because of his darkish complexion and professional dexterities. After
participating in the 1960 Olympics in Rome, he won medals at the Asian Games in
Bangkok and Thailand and Gold Medals in International Boxing events in New
Delhi and Karachi. Sumith Liyanage was the former Boxing Vice President of the
Amateur Boxing Association; later, he became the Manager cum Coach.
Sumith Liyanage joined the Police Force as a Sub-Inspector and rose to
Deputy Inspector General of Police (D.I.G.) in 1994 and retired on 24 June
1996. He was one of the honest, fearless, and respected Police officers of the
day, who always cogitated in action. One incident that comes to the writer’s
mind is when Sumith went to raid a gambling ring, and the gambling leader
picked a crossbar to attack Sumith. It was a life and death situation for him
facing a gang leader. However, Sumith faced the opponent bravely, stating:
“You bloody young brat, you still do not know who I am, and gave a
powerful uppercut punch. The challenger fell to the ground and was arrested
immediately.”
He had a distinguished career of 38 years in the Police Force to become
one of the best sportsmen Ceylon ever produced. He excelled in cricket, boxing,
shooting and motor racing. His colourful gentlemanly personality and qualities
of high discipline, honesty and integrity made him one of the most respected
and loved Police officers in the police force.
After a brilliant career in boxing, he excelled in pistol shooting in
1991. Later he was the coach for the Sri Lanka Police Pistol team. He became
the champion in rifle and pistol shooting and helped Sri Lanka win the Pistol
shooting in 2007 at the World Police and Firearm games in Adelaide, Australia.
Sumith Liyanage had to bear the most heart breaking news when staff at
the Police Commission took a strange stance in response to his appeals he made
to the Commission in connection with his ‘pistol saga’.
Anguish
For years, he struggled with the Police Commission, surrounding his ‘target
pistol’. Regrettably, it appears that he has lost the battle! In the end,
Sumith wrote in detail to the Editor of the Newsletter of the ‘Retired
Senior Police Officers Association on what took place. The Editor published
his letter in its entirety. The following is the text of his letter to the
Editor.
I refer to my article by the Editor regarding the sad and ineffective
state of the National Police Commission. Whilst agreeing wholeheartedly with
the Editor on the comments presented, I wish to give further evidence
supporting my claim.
“Justice and fair play are the aspirations of citizens of all
civilised societies. Equality before the law and impartiality in dispensing
justice are hallmarks of a healthy democracy. It is tragic that the National
Police Commission (NPC), the very highest Body that ensured the implementation
of these ideals, miserably failed up to date or sidestepped its mandated duties
in the most ignorant of ways.”
“Many, including very senior officers of the Police Department, who
endlessly expounded high ideals whilst in service, suddenly found that these
very noble qualities had vanished mysteriously with their appointment to this
so-called august body. They are no longer there, and I will refrain from naming
them.
“I sincerely hope that the duo appointed to the NPC and renowned
for their forthrightness, ability and who could boast of a high degree of
honesty and integrity will size- up the situation and contribute towards a
radical change in the NPC.”
“As a retired DIG who has put my life on the line of fire ” in operational areas” in guarding several VVIP’s and Executive
Heads of the State, I am the innocent victim and continue to be denied justice.
To put down facts very
briefly: In April 2009, a Bank Robbery took place. During the investigation
seven suspects were arrested, including my son, a former Commissioned Officer
of the Sri Lanka Army. The mastermind of the robbery was a Bank Manager, who
was arrested based on his confession. The Pistol used in the robbery was
recovered from the Bank Manager’s kitchen, as per notes made by the
investigating officer. It was a plastic toy pistol bearing the name ‘Yukon.’
Blatant lie and Fabrication
“The Colombo Crimes Division (CCD) took over this investigation. It
was handled by an ASP, who telephoned for reasons best known to him, and
requested that my ‘target pistol’ be produced to him for examination. My ‘ target pistol’ costs over one million rupees according to current
value. After having
consulted the lawyer appearing on behalf of the accused I handed over the pistol to the Director CCD in the
presence of the said ASP; neither statements
were recorded, nor any receipts issued. Consequent notes of inquiry stated stated that the pistol was found after a search of my house, which was a blatant lie
and diabolical fabrication. Little did I know my Pistol would be introduced into
the case to make it look like
an armed robbery.”
“In this connection, I made several written complaints to all
concerned, including the IGP, Attorney General and the NPC on 7 December 2015.
I received a response dated 20 May 2016 (after six months) from the
Director (Western Province) for Secretary to NPC advising me that they had
decided to summon both parties to investigate. I was further directed by letter
to present myself with my witnesses on 20 May 2016 at 2.30 p.m. Although I
presented myself with the witnesses on this day at the NPC, no inquiry or
investigation was held.”
“Subsequently, I received a letter dated 03 May 2016 signed by
W.A.D.P. Lakshman (Director NPC) requesting that I present myself with my
witnesses on 08 June 2016, to which I duly complied. Once more, to my utter
disappointment, it was another day of wasting my time, as no inquiry was
conducted on this day too for reasons unknown.”
“Incredibly, by letter dated 05 September 2016 bearing reference
no. PC/PCID/WP/156/2015, A. G. Dharmadasa, Director PCID (WP) signing for
Secretary NPC informed me the NPC had suspended the investigation, citing the
pending case in Mt.Lavinia courts, which was the very cause on which I
sought redress.”
Ineffectiveness
“To summon an investigation with both parties present, and then
abruptly suspend or cancel it, citing a baseless argument, stinks of the
ineffectiveness partially on the part of the NPC, and the inability to hold the
police department to accountability rather than being the Independent
Commission that it touts itself to be.”
“The extent of its degeneration is amply reflected when retired
Senior Police Officers concerned about the Police Department arrive at the
conclusion the NPC is a damp squib! While the accountability of
the Police Department remains no one’s concern.”
I’m utterly disappointed.
Signed – Sumith M. P. Liyanage.
The editor of The Retired Senior Police Officers’ Association commented
on Sumith Liyanage’s letter in Issue in No.02 dated July 2019 as follows:
“Retired D.I.G. Sumith Liyanage most certainly merited an
investigation. His prestige and creditability were way above those who had done
injustice to him. It was an unpardonable travesty of justice on the part of
respective IGPs and the NPC not to have had his complaint investigated. A
dereliction of duty on their part was as serious an offence.”
If the Ceylon Police Commission can suppress a case from a former
D.I.G., what more can the writer say about the Commission in the case of a
complaint by an ordinary citizen of Sri Lanka?
No
one has the right to kill a citizen at the border. This is a clear violation of
human rights and international law. We need to intensify our foreign policy and
diplomatic efforts to reduce border killings to zero. According to Human Rights
Watch, between 2000 and 2019, the BSF shot and killed at least 1,165
Bangladeshis on the Bangladesh-India borders. The friendly relations between
the two countries need to be taken into account by the Indian Border Security
Force. They have to understand that there is no war on the border. Shooting
alone cannot be the answer. If a citizen crosses the border unknowingly, by
mistake or illegally, arrangements must be made to hand them over to the BGB or
local police as per the agreement. Friendly relations with the Indian
authorities need to be developed at various meetings, conferences and
government level meetings. As promised, border killings must be reduced to
zero. Besides, surveillance at the border should be increased. We need to make
our people aware so that they do not cross the border illegally.
Where
is the end of border killings? There was a lot of talk between India and
Bangladesh about border killings. Until the agreement. Our friendly country
India is constantly killing the ordinary farmers and small traders of
Bangladesh from the border areas. Many Bangladeshi nationals are being killed
every year by indiscriminate firing by the Indian Border Security Force (BSF),
which we never expect from friendly India. India’s enemy states are Pakistan
and China, their borders are never shot dead by an ordinary citizen of India,
Pakistan or China. India, Nepal, Bhutan, Myanmar, the border countries of
India, if ordinary citizens can live very peacefully on their borders, then why
we, the friendly state of Bangladesh, are disgusted with the BSF of India.
In
the last 10 years, more than 1,000 people have been killed by Indian security
forces, most of them Bangladeshis. The border area turned into a South Asian
killing field. Despite clear evidence of cold-blooded killings against unarmed
and helpless locals in many cases, no one has yet been charged with murder.
India
also shares a border with China, Pakistan. There are border issues. But there
but India does not fire like this. Not only cattle are smuggled across the
Bangladesh-India border, but also phencidyl, drugs and illegal weapons come
from India. The BSF does not see that. And cows don’t just come from West
Bengal. Comes from different provinces of India. Why not stop there?
Bangladesh
Foreign Minister AK Abdul Momen said in Dhaka last year, “Border killings
are a shame for India. It has been decided between the two countries that no
lethal weapons will be used on the border. No shots will be fired. But it is
happening. So, it is a shame for them.” And sadly, we are losing our
lives. “
Meanwhile,
at a function in Dinajpur last year, Indian High Commissioner to Bangladesh
Vikram Kumar Doraiswamy said that the border killings were definitely sad and
unexpected for both the countries. Indian border guards have been specifically
told not to open fire on the border if there is no threat of an attack on them.
We do not want border killings in any country. Border killings are a heinous
act.
Despite
repeated promises from the highest levels of India to stop border killings, it
has not stopped. As soon as they talked about bringing the border killings down
to zero, the border killings started again. Now time to implement their
sayings. Indian authority should consider this with special attention. We want
to see the proper implementation of the political dialogue. There is no justice
in filing a case in specific cases like Felani’s murder. As a result, there is
no reason for the BSF to stop. But this time, they should understand this that
it may be an obstacle to introduce themselves as India-Bangladesh eternal ties.
According
to Indian authorities, the BSF killed in self-defense. But reality does not say
that. Several years ago, Human Rights Watch (HRW) cited a number of such cases
in a report called Trigger Happy. Survivors and eyewitnesses allege that the
BSF fired indiscriminately without trying to apprehend or warn them. The BSF
also claimed that its members fired when the miscreants tried to avoid arrest.
However, the use of lethal weapons on suspicion of any crime is not justified.
Although
relations with India have improved, they are not reflected on the border, even
in the overall context. It was decided in the bilateral talks that the BSF
would use non-lethal weapons. So that the killings at the border can be brought
down to zero. But then why the use of deadly weapons? Border killings cannot go
on like this. The governments of Bangladesh and India should now find the right
solution, to stop border killings.
The
failure of the Indian authorities to take any meaningful action to stop the
killings at the border for years is detrimental
to the India-Bangladesh bilateral ties. This has put the Bangladesh government
in a difficult position by increasing the pressure on bilateral relations. Now
is the time Dhaka policymakers to take action to come to the right conclusion.
Colombo, January 12 (newsin.asia): China has plans to revise schedules for the repayment of loans given to Sri Lanka, in response to the request made by the Lankan President Gotabaya Rajapaksa during his meeting with the visiting Chinese Foreign Minister Wang Yi here on January 9, the Global Times said.
The Communist Party-run Global Times quoted Song Wei, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, as saying that the interest-free loans offered by the Chinese government are applicable for debt relief while the concessional loans raised through the market cannot be written off.
It is likely that China may exempt part of the interest-free loans to Sri Lanka. And for preference loans that are not eligible for debt relief, China may work with Sri Lanka through negotiations, equity cooperation and rescheduling,” Song said.
China will actively respond to Sri Lanka’s request like what it did to African countries, Chinese observers added. After the outbreak of the COVID-19 pandemic, China announced the cancellation of 15 African countries’ debt in the form of interest-free government loans that were due to mature by the end of 2020, Global Times said.
According to data from Sri Lanka’s Department of External Resources, China only accounts for about 10% of Sri Lanka’s U$35 billion foreign debt as of April 2021. Japan also accounted for about 10% of Sri Lanka’s foreign debt.
Other Countries Should Cooperate
Long Xingchun, a senior research fellow at the Academy of Regional and Global Governance of the Beijing Foreign Studies University, said that only restructuring loans with China is not enough to help the island nation tide over its difficulty, which needs a package plan with other involved parties.
Sri Lanka’s crisis is also a test to countries like Japan, India and the US on how much help they would offer, but what we see now is that they are standing by and even defaming China which is truly helping the country,” Long said.
The island nation is gripped by one of the worst economic crises, and several credit rating agencies including Moody’s and Fitch downgraded its credit rating from B to C.
Global Times noted that some foreign media mentioned nothing about other involved parties’ responsibility but claimed that Sri Lanka’s economic crisis was partly due to Beijing-financed projects that don’t generate revenue.”
Many infrastructure projects China and Sri Lanka worked together on, including ports and highways, require large amounts of investments and a long construction period, which shows returns of up to 20 to 30 years. Hyping their returns when the projects just started was unprofessional and had ulterior motives.
During a meeting with Sri Lankan President Gotabaya Rajapaksa in Colombo on Sunday, Foreign Minister Wang Yi called on China and Sri Lanka to discuss the restart of talks on free trade agreement by tapping the opportunities of the Regional Comprehensive Economic Partnership (RCEP) agreement and China’s vast market. Wang said the Colombo Port City and Hambantota Port projects could be engines for pushing forward bilateral cooperation.
COLOMBO (REUTERS) – The Sri Lankan government will meet all debt repayments in 2022 and work on a more comprehensive plan to address its dwindling foreign exchange reserves, said central bank governor Ajith Nivard Cabraal on Wednesday (Jan 12).
Sri Lanka managed to boost its reserves to US$3.1 billion (S$4.2 billion) at the end of December, thanks to a yuan currency swap with China worth US$1.5 billion. The government is also currently in talks with India and Qatar to obtain multiple credit lines and a currency swap arrangement, totalling around US$2.9 billion.
Sri Lanka needs to repay about US$4.5 billion in debt this year, starting with a US$500 million International Sovereign Bond (ISB) maturing on Jan 18 for which fund allocations have already been made, Mr Cabraal said.
“Not paying debt will push us into bigger challenges,” Mr Cabraal said during an event organised by the Department of Government Information.
“We need a more comprehensive, longer-term plan to address debt and other issues in the Sri Lankan economy. Not honouring ISBs will get Sri Lanka into a path of pain.”
Due to the pandemic, Mr Cabraal said the country has lost about US$9 billion in tourism revenue in the last two years, but he expected a pickup in tourism in the next two to three months would help rebuild reserves.
Even before the pandemic struck, tourism had fallen off in Sri Lanka as a result of the Easter Sunday bombings in 2019 that targeted churches and hotels, and killed 267 people.
Mr Cabraal said the negotiations with India were at advanced stages. Sri Lanka is seeking a US$1 billion credit line, and a US$400 million swap arrangement with India, plus a US$500m credit line for fuel involving Indian Oil Corp, which has operations on the island.
The recent sharp increase in its energy import bill, due to surging global prices for oil and gas, has exerted more pressure on Sri Lanka’s reserves.
Discussions with Qatar for a US$1 billion credit line are also under way.
Mr Cabraal said the government could also look at a fresh loan from China, which is Sri Lanka’s fourth-biggest lender, behind international financial markets, the Asian Development Bank (ADB) and Japan.
Several analysts have said Sri Lanka may eventually need to go to the International Monetary Fund for a bailout – something the government has been reluctant to do.
“Approaching the IMF is not something to be taken lightly. The monetary board has had many discussions on this matter and we only see the IMF as one of many options,” Mr Cabraal said.
“Our view is the path we are on is the most appropriate. The IMF is not a fix-all solution, it’s not a magic wand.”
A part of interest-free loans may be the first to be rescheduled while arrangements for other loans will have to be negotiated
China has plans to revise schedules for the repayment of loans given to Sri Lanka, in response to the request made by the Lankan President Gotabaya Rajapaksa during his meeting with the visiting Chinese Foreign Minister Wang Yi here on January 9, the Global Times said.
The Communist Party-run Global Times quoted Song Wei, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, as saying that the interest-free loans offered by the Chinese government are applicable for debt relief while the concessional loans raised through the market cannot be written off.
It is likely that China may exempt part of the interest-free loans to Sri Lanka. And for preference loans that are not eligible for debt relief, China may work with Sri Lanka through negotiations, equity cooperation and rescheduling,” Song said.
China will actively respond to Sri Lanka’s request like what it did to African countries, Chinese observers added. After the outbreak of the COVID-19 pandemic, China announced the cancellation of 15 African countries’ debt in the form of interest-free government loans that were due to mature by the end of 2020, Global Times said.
According to data from Sri Lanka’s Department of External Resources, China only accounts for about 10% of Sri Lanka’s U$35 billion foreign debt as of April 2021. Japan also accounted for about 10% of Sri Lanka’s foreign debt.
Other Countries Should Cooperate
Long Xingchun, a senior research fellow at the Academy of Regional and Global Governance of the Beijing Foreign Studies University, said that only restructuring loans with China is not enough to help the island nation tide over its difficulty, which needs a package plan with other involved parties.
Sri Lanka’s crisis is also a test to countries like Japan, India and the US on how much help they would offer, but what we see now is that they are standing by and even defaming China which is truly helping the country,” Long said.
White Elephants?
The island nation is gripped by one of the worst economic crises, and several credit rating agencies including Moody’s and Fitch downgraded its credit rating from B to C.
Global Times noted that some foreign media mentioned nothing about other involved parties’ responsibility but claimed that Sri Lanka’s economic crisis was partly due to Beijing-financed projects that don’t generate revenue.”
Many infrastructure projects China and Sri Lanka worked together on, including ports and highways, require large amounts of investments and a long construction period, which shows returns of up to 20 to 30 years. Hyping their returns when the projects just started was unprofessional and had ulterior motives.
During a meeting with Sri Lankan President Gotabaya Rajapaksa in Colombo on Sunday, Foreign Minister Wang Yi called on China and Sri Lanka to discuss the restart of talks on free trade agreement by tapping the opportunities of the Regional Comprehensive Economic Partnership (RCEP) agreement and China’s vast market. Wang said the Colombo Port City and Hambantota Port projects could be engines for pushing forward bilateral cooperation.
Last week, President Gotabaya Rajapaksa told the visiting Chinese foreign minister Wang Yi that Sri Lanka would be helped if the debt could be restructured.
Sri Lanka is currently experiencing a shortage of almost all essentials due to a shortage of dollars to pay for the imports.
Sri Lanka is negotiating a USD one billion loan from India to import goods from the country, the governor of the Central Bank Ajith Nivard Cabraal said on Wednesday, amidst a shortage of almost all essential commodities.
Cabraal also said that Sri Lanka is negotiating another loan from China as part of an attempt to restructure its debt repayment. The loan amount has not been decided.
He said that Sri Lanka is negotiating a USD 1 billion facility with India to import goods from the country.00:05 / 00:30
Cabraal said that this will also help Sri Lanka in its debt repayment and promote more trade with the respective countries.
Last week, President Gotabaya Rajapaksa told the visiting Chinese foreign minister Wang Yi that Sri Lanka would be helped if the debt could be restructured.
We have an understanding that they would assist us in making the repayments in that form. So maybe there is a possibility that we would have a new loan coming in order to cushion our debt repayments to China”, Cabraal said.
Cabraal said Sri Lanka’s debt repayments this year would amount to about USD 6 billion.
We are confident we can pay all of them despite current difficulties we are facing,” he said, adding that the USD 500 million international sovereign bond (ISB) repayment due next will be duly paid.
The government in the past week faced lobbying by the trade chambers who advocated an ISB default in order to pay for imports.
Sri Lanka is currently experiencing a shortage of almost all essentials due to a shortage of dollars to pay for the imports.
Cabraal defended the Central Bank’s decision to sell more than half of its gold reserves last month in order to supplement the foreign exchange reserves. The Central Bank economic indicators dated January 7 showed that gold reserves had fallen to US dollars 175 million in December from 382 million.
Cabraal said the gold-selling was part of reserves management adopted by the Central Bank and could be brought to the bank in the future.
The government officials said the USD one billion loans from India would be restricted to food imports.
Agriculturists have warned of food shortages in the country during the next two months.
Sri Lanka’s economy is gradually but surely on the road to recovery and the country will record a GDP growth of over 5% in 2022, Governor of the Central Bank, Ajith Nivard Cabraal said today.
The government is in the process of negotiating with India and China to obtain the assistance of the two friendly countries – a super power and a regional power – to facilitate debt repayment of Sri Lanka which is the major issue before us right now,” Cabraal said.
Cabraal said he had rejected outright the requests made by a section of economic pundits, the opposition and corporate sector leaders to default the repayment of US$ 500 million by January 18th and use it to purchase essential commodities like food, fuel and drugs.
No, I don’t accept the request to default the repayment of International Sovereign Bonds (ISB) worth US$ 500 million. It is not a request made by bona-fide intensions. We have never defaulted a loan obtained from a friendly country, global financial agency or from the bond market. We pay this loan for sure and maintain the investor confidence unscathed. Those who ask us to default loan repayment will be thoroughly disappointed,” Cabraal said.
The tourist sector has shown a steady improvement, exports revenue and foreign remittances in 2021 has increased satisfactorily. I expect a better performance of this three major foreign income generators in 2022 and as such, by the end of this year, Sri Lanka’s economy would be in a very healthy position, he noted.
Commenting on the suggestion that Sri Lanka was facing bankruptcy and not in a position to repay her loans, Cabraal said this canard has been in the social domain since 1977.
What I cannot understand is that the same people now ask the government to default the ISB repayment of 500 million dollars. Lebanon fell to the same trap a few years ago heeding to the requests made to default loan repayments but Sri Lanka will not be foolish to do the same. When the foreign reserves dropped to little over US$ 1 billion in November, I said we increased foreign reserves to over US$ 3 billion by January 2022,” he noted.
Responding to the issue related to the source of US$ 1.5 billion obtained to strengthen foreign reserves, Cabraal said no bank in the world would disclose the source of income for any bank account as it is unethical to ask it and against the bank secrecy law.
“When you deposit some money in your bank account, do you agree if the bank reveals the information of your account to an outside source?” He quizzed adding that it was surprising to note that no one questioned about the source of foreign reserve income when he increased it to US$ 8 billion soon after he assumed duties as the governor of the CBSL in 2006.
In response to a journalist, Cabraal said the Central Bank uses various tools to manage the economy, and increase foreign reserves prudently with the hope of economic recovery gradually but surely in 2022. By doing so, money printing would be drastically curtailed this year. However, the trade gap resulting from high import cost in excess of low export revenue remains a major drawback to the national economy, he emphasized.
On the issue of recent of gold reserves of Sri Lanka worth US$ 207million, Cbraal said it was a tool used regularly by almost all countries to maintain a healthy foreign reserve stock.
COLOMBO: Sri Lanka ruled out an IMF bailout on Wednesday and said it plans to seek another loan from China to address an economic crisis that has led to food and fuel shortages.
The island’s tourism-dependent economy has been battered by the pandemic, with supermarkets rationing goods and rolling blackouts imposed by power utilities unable to fund oil imports.
International rating agencies have warned of a looming sovereign default on Sri Lanka’s $35 billion foreign debt as the treasury battles a crunch on foreign exchange reserves and a gaping budget deficit.
But central bank governor Ajith Nivard Cabraal rejected mounting calls from local and international economists to seek an International Monetary Fund bailout and debt restructure.
“The IMF is not a magic wand,” he told a news conference in Colombo. “At this point, the other alternatives are better than going to the IMF.”
Cabraal added that talks with China over a new loan were at an “advanced stage”, and a fresh agreement would service existing debt to Beijing.
“They would assist us in making the repayments… the new loan coming from China is in order to cushion our debt repayments to China itself,” he said.
Beijing is already the island’s biggest bilateral lender, accounting for at least 10 percent of Sri Lanka’s external debt.
Cabraal’s remarks come days after a visit from Chinese Foreign Minister Wang Yi who discussed a debt payment restructure with President Gotabaya Rajapaksa.
Sri Lanka has borrowed heavily from China for infrastructure in the past, some of which ended up as white elephants.
Unable to repay a $1.4 billion loan for a port construction in the south, Sri Lanka was forced to lease out the facility to a Chinese company for 99 years in 2017.
The United States and India have warned that the Hambantota port, located along vital east-west international shipping routes, could give China a military toehold in the Indian Ocean.
Cabraal did not give an indication of the size of the loan sought from China, but said talks were also underway with India for a $1 billion credit line to fund a broad range of imports.
He also said Colombo will repay a $500 million sovereign bond that matures next Tuesday despite local business leaders publicly asking him to withhold the repayment and seek IMF help.
Rasheed Hajjul Akbar was arrested in March 2021 by counterterrorism police, say sources.
The former chief of Jamaat-e-Islami Sri Lanka was released on bail by a Colombo court on Wednesday, sources said.
Our lawyers had challenged the detention of Usthadh Rasheed Hajjul Akbar as illegal under fundamental rights violation in the Supreme Court of Sri Lanka,” sources close to the case told Anadolu Agency from Colombo.
Akbar, 61, was arrested last year in March by the counterterrorism and investigation division of the Sri Lankan police.
The top court set the case for hearing on Dec. 17 where the government’s top counsel agreed to release Akbar on bail,” the sources said.
Akbar’s family lives in Mawanella, some 100 kilometers (62 miles) east of the capital Colombo.
He was previously arrested in August 2019, following the Easter bombings in April that year which killed over 250 people.
Akbar headed Jamaat-e-Islami Sri Lanka for 24 years – from 1994 to 2018.
There is no indictment against him and the attorney general agreed in court to release him on bail,” the sources said.
Under the anti-terrorism act, the Sri Lankan government can keep a person in detention for at least 18 months without producing him in court.”
The daily count of COVID-19 cases recorded in Sri Lanka moved to 653 today (January 12), the Health Ministry said.
According to the Government Information Department, the newly-detected cases include 02 individuals who recently arrived on the island.
The latest development has brought the total number of confirmed cases of coronavirus reported in the country so far to 593,725.
As many as 567,519 recoveries have been confirmed in Sri Lanka since the outbreak of the COVID-19 pandemic.
More than 11,000 active cases in total are currently under medical care and the death toll stands at 15,163, official figures showed.
Meanwhile, the Director-General of Health Services has confirmed 14 more coronavirus-related deaths for January 11, increasing the death toll in the country due to the virus pandemic to 15,163.
According to the official figures released by the Government Information Department, the deaths reported today include 07 males and 07 females.
Three of the patients are between the ages of 30-59 years. The remaining 11 are in the age group of 60 years.
Sovereign debt is regularly in the news even though we may not realize it. Several poor countries keep defaulting on their debt. This occurs more frequently with countries in Latin America and Africa. People have a limited understanding of how sovereign debt works. This is because sovereign debt is a bit counter-intuitive. It is true that countries borrow money just like companies and must repay them in a similar fashion. If a company fails to repay the debt, it must face the consequences of its action. However, when a nation defaults on its debt, the entire economy takes a hit.
In this article, we will understand how sovereign default is different from the corporate default. We will also understand the after-effects of a sovereign default.
No International Court
Firstly, it needs to be understood that most of this debt is not subject to any jurisdiction. When a company fails to repay its debt, creditors file bankruptcy in the court of that country. The court then presides over the matter, and usually, the assets of the company are liquidated to pay off the creditors. However, when a country defaults, the lenders do not have any international court to go to. Lenders usually have very little recourse. They cannot forcibly take over a country’s assets and neither can they compel the country to pay.
Reputation Mechanism
The next question arises that if creditors cannot compel borrowers to repay debt, why would they lend money? The answer is that they lend based on the reputation of the borrower. Countries like the United States have never defaulted on their debt. Hence, they have a small likelihood of default. As a result, they receive financing at better terms as compared to a country like Venezuela or Argentina which has defaulted in the past and is more likely to default in the future.
The entire premise of lending to sovereign nations is that if these nations default, then they will be cut off from future access to credit from international bond markets. Since countries almost always need credit to fund their growth, this acts as a major detriment. This is the reason why countries decide to pay up on their debt even after defaulting.
A 100% loss to creditors is unlikely. Usually, when a default occurs, some sort of compromise is reached, and creditors end up taking a haircut. This means that they receive at least part of the payment that was due to them.
Effects of Sovereign Default
Some of the common effects of a sovereign default are as follows:
Interest Rates Rise
The most immediate impact is that borrowing cost rises for the nation in the international bond market. If the government itself is borrowing at a higher rate, then the corporates also have to borrow at increased rates. As a result, interest rates rise and the price of bonds that were issued earlier collapse even further. Trade and commerce is negatively affected since banks are skeptical of lending money at high rates to borrowers.
Exchange Rate
International investors become wary that the defaulting country will continue to print money till it reaches hyperinflation. As a result, they want to exit the defaulting nation. As a result, the exchange rates in the international market plummet as everyone tries to sell their local currency holdings and buy a more stable foreign currency. If a country is not too dependent on international investment, then the effect of exchange rate may be marginal. However, countries which default on their debt tend to have massive foreign investments.
Bank Runs
Just like investors want to move their money out of the country, local people want to move their money out of the banks. They are fearful that the government will forcibly take possession of their bank deposits to repay the international debt. Since everybody tries to withdraw money at the same time, bank runs become the norm. Many people are not able to recover their deposits and as a result the crisis becomes even more severe and more bank runs follow.
Stock Market Crash
Needless to say, the above-mentioned factors negatively affect the economy. As a result of the stock market also takes a beating. Once again the cycle of negativity feeds off itself. The stock market crash perpetuates itself. It is not uncommon for stock markets to have 40% to 50% of their market capitalization wiped off during a sovereign debt default.
Trade Embargo
Foreign creditors are often influential in their home country. Hence after default, they convince their countries to impose trade embargos on the defaulting nations. These embargos block the inflow and outflow of essential commodities into a nation thereby choking its economy. Since most countries import oil to meet their energy needs, such trade embargos can be disastrous. In the absence of oil and energy, the productivity of an economy takes a severe beating.
Rising Unemployment
Private firms and the government both feel the negative effects of the economic climate. The government is not able to borrow and tax revenues are also at all-time lows. Hence, they are not able to pay salaries to the workers on time. Also, since there is a negative sentiment in the economy, people stop consuming products. As a result, the GDP comes down and accentuates the unemployment cycle.
Dear
Editor , Please
find below my response on listening to an interview given by the exUNP, now SJB
, finance spokesperson on his hysterical advocation of joining the world”
seemingly oblivious to all the efforts of the past two years of inviting
foreign investment ,with each visiting heads to SL ,and with each interaction
with every foreign head by SL’s head of state & the improvement in
conditions for foreign investment with legislation to make it a “one
stop shop” with the Colombo Port City Commissioning bill.
Has
he short term memory loss ( sure sign of early dementia) , that it was he and
his band of never achieved anything” colleagues who tried to stall
it asking what is the hurry”. Has he also got amnesia for
how the likes of him raised bogeys like making SL a Chinese Colony”
especially with regard to the appointees to CPC’s management commission, which
when appointed was devoid of a single Chinese face but headed by a lawyer who
defended a prominent accused in the Central Bank Robbery with well known family
connections to the UNP. So much for some of his earlier cautions.
It
is also testimony to the quality of SL media that, these questions were never
raised with those expressing these concerns even more than eight months
after they were raised , leaving it to me from thousands of miles away to do
so. It would appear to me that the SL media sees it as it’s obligation to
question every action or word of the govt but not those of the opposition
leaving it to them to exploit the media to vent all their baseless allegations
and insinuations to thwart SL’s recovery
Now
my response to the interview in question , possibly 9th or 10th Jan ‘22
I
Just don’t understand this man . Is he honest or deliberately misleading.
This govt has made foreign investment a one stop shop for Colombo port city and Hambantota manufacturing zone and has been encouraging foreign investment with every overseas visit and and overseas visitor encouraging successfully & developing neglected local industry and new industry, Tyre, motor car, Yatch building ( all the yatchs visible in the CPC Marina r locally made) ship building etc. ref Ada Derana Big Focus 9/1/21
This man was in power for four and a half years and did not do even a smidgen of what he is advocating now . Instead all they did was run the economy to ground, robbed the centra bank not once but twice and turned a blind eye on the looming Easter Sunday disaster. In the mean while these paragons of virtue looked on helplessly while their two leaders fought with each other like the double heads of a dragon .!
The govt is trying to correct the consequences of these crimes compounded by those of COvid with a monumentally successful COvid vaccination drive when COvid is consuming the rest of the world . They are just getting on top of things and trying to build up SL peoples self belief, confidence and resolve and this guy & those like him r only trying to break the resolve of the people to join in the journey. Instead they seek to drive them into despondency ably assisted by sections of rating driven and well oiled media.
Don’t do that .it is traitorous! R u DB ( deaf and blind ) not to see what is happening around U
Can’t u see that the govt is attempting to restructure loans and obtain buffers of Forex till remittances and tourism improves as is happening now and that too without being hostage to IMF conditions as you advocated . This would have led the govt to be even more unpopular, no doubt much to your delight.
I acknowledged that you can take credit for the only positive smidgen of that disastrous AYAHAPALANA regime , viz the national ambulance service.
Don’t wreck that record by playing to the gallery and to sections of rating driven & well oiled by anti national forces media, that r even worse than the gallery , trying to wreck SL’s ‘fledgling recovery..
Instead contribute to it by using your interviews to encourage potential international investors of the potential for investing in SL , a few nautical miles off the busiest sea lane in the world so using the easiest access to the East and West and the one stop shop” ease of investing in SL now. Then the world would be the Oyster in their hands for their manufacturings .
Then you will have a stake in SL’s recovery which will ease things for you too if you iinherit it some day.
Justice for Animals and
Nature welcomes the grant of Cabinet Approval for the long-awaited Animal
Welfare Bill initially drafted by the Law Commission of Sri Lanka and handed
over to the then President Mahinda Rajapakse for enactment in May 2006. It has taken
more than 15 years for the Govt. to
reach the stage of giving
Cabinet approval for this Bill that will enhance the protection given to
Animals at a level comparable with modern standards of care. Its enactment will
raise the moral stature of Sri Lanka in the civilized world.
Colombo, January 11 (newsin.asia): During his visit to Sri Lanka on January 8 and 9, the Chinese Foreign Minister, Wang Yi, had clearly indicated that China is keen on going beyond infrastructural development to investing in industries in the island nation to help it industrialize and develop a Made in Sri Lanka” brand.
He also urged an early conclusion of the long drawn out negotiations on a Sino-Lankan Free Trade Agreement so that the island’s economy is put on a more solid and modern footing, based on investment and trade.
These proposals are meant to strengthen the Sri Lankan economy and enable it to earn enough to repay debts even as they release China from the charge across the world that it is on a lending spree in poor countries with the aim of taking over their assets if they fail to repay the loans. China is widely accused of practising- debt-trap diplomacy.”
In Sri Lanka, so far, China has built massive infrastructural facilities like the Hambantota port, the Mattala airport, the Colombo International Container Terminal, the Colombo Port City, the Lotus Tower, a kidney Disease hospital in Polonnaruwa and several highway and railway links. With the result, today, China is the single largest lender to Sri Lanka having displaced Japan. But still, China accounted for only a little over 10% of Sri Lanka’s external debt of US$ 51 billion in 2021.
Yet, the taking over of the Hambantota port on a 99-year lease following the inability of the Lankan government to pay back the US$ 1.1 billion loan taken from China to build the harbor, is widely cited as a classic case of China’s debt diplomacy”. However, over time, these projects, barring a few like the Lotus Tower, have started generating income. Even the classic White Elephants, the Hambantota port and the Mattala Airport derided by Forbes as the World’s Emptiest Airport”, are earning money now.
If they took so long to yield returns it was not the fault of China or the assets, but the Sri Lankan government’s lack of interest in making use of the assets in a creative way. For instance, India had submitted a plan to use Mattala airport for domestic flights through a joint venture, but the previous Mathripala Sirisena-Ranil Wickremesinghe government used it for grain storage”. However, since the Rajapaksa came back to power, the airport has been attracting flights.
In April 2021, the Lankan Minister of Tourism Prasanna Ranatunga stated in parliament that the Mattala International Airport had earned an income of LKR 445 million from its opening to traffic in November 20, 2020. The Minister said that since the opening of the airport, 10,266 aircraft and 58,651 passengers arrived and 73,513 passengers took off.
As for the Humbantota port, it is attracting traffic and will see a jump when plans to build facilities in the hinterland are implemented. According to the website of Hellenic Shipping News, in September 2021, the China Merchants Port Holdings (CMPH) which operates Humbantota port, declared a dividend of LKR 1.05 billion to the Sri Lanka Port Authority (SLPA), while announcing that its first half net profit had shot up by 204.7% to HK$4.71 billion (Rs 120.61 billion), from HK$1.54 billion in 2020.
For the first half of 2021, Hambantota International Port Group handled 790,000 tonnes of bulk cargo. Bulk cargo volume vaulted by 338.9% from the year before. The roll-on/roll-off terminal handled 281,000 vehicles in the first half, up by 56.2% year-on-year. The Humbantota Industrial Park had signed up 27 enterprises, the company said. It is gearing up to become a fully-functional multi-purpose port next year.
The US$ 1.4 billion Colombo Port City constructed by the China Harbor Company, began humming with activity recently, after the Lankan government, at long last, gave it proper legal structure. Designed to be an international financial hub it is expecting two big-ticket Chinese financial companies to set other international investments in motion, according to the Lankan envoy in Beijing Dr.Palitha Kohona.
There is criticism that about 88 hectares were leased to China for 99 years and another 20 hectares were given on freehold to China in the Colombo Port City. But this was done to compensate for the loss of US$ 380,000 per day due to work stoppage caused by a government inquiry which eventually found no wrong doing.
Alternative to Debt Restructuring
Since Sri Lanka is in the thick of a grave financial crisis. Its President Gotabaya Rajapaksa had sought debt restructuring when the Chinese Foreign Minister called on him on January 9. It appears that Wang did not commit himself to restructuring as such but said that China would assist Sri Lanka in overcoming the temporary difficulties within its capacity.” But he assured Sri Lankan leaders that he would encourage Chinese companies to invest in Sri Lanka to make Sri Lanka industrialize and establish a Made in Sri Lanka” brand.
China will continue to assist Sri Lanka in overcoming temporary difficulties within our capacity. We are convinced that Sri Lanka’s economy will walk out of the current predicament and achieve new and greater progress. Colombo Port City and Hambantota Port are the flagship projects of bilateral cooperation in building the Marine Silk Road, and two engines of Sri Lanka’s economic development. China supports Chinese enterprises in investing and developing in Sri Lanka and combining Chinese capital and experience with Sri Lanka’s human resources advantages to help Sri Lanka improve the ability of self-development, accelerate industrialization, and build the brand of Made in Sri Lanka,” Wang told Lankan Prime Minister Mahinda Rajapaksa.
Wang stressed the need to conclude a China-Sri Lanka Free Trade Agreement which had run into opposition from Lankan nationalists.
Sri Lanka and China should make good use of the two engines, Colombo Port City and Hambantota Port flagship projects, tap the opportunities of the enforcement of the Regional Comprehensive Economic Partnership and China’s vast market, and discuss the restart of talks on a free trade agreement between China and Sri Lanka to send more positive signals to the world and contribute to Sri Lanka’s economic recovery and development.” Wang told President Gotabaya Rajapaksa.
