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Deputy Managing Director of the International Monetary Fund (IMF) Kenji Okamura will arrive in Sri Lanka tomorrow (May 31) for a two-day official visit, State Minister of Finance Shehan Semasinghe says.

During his visit to the island nation, Okamura is expected to hold several rounds of discussions on the recent changes in Sri Lanka’s economic stability and the opportunities to empower the economy in the future.

The discussions will also focus on the methods to minimize the obstacles and delays hampering the economic recovery.

Okamura’s visit comes days after the IMF staff team’s visit to Sri Lanka, which was part of the regular consultations between the global lender and the island nation, ahead of the first review mission later in 2023.

The delegation was led by Krishna Srinivasan, the IMF’s Director of Asia and Pacific Department; Peter Breuer, the Asia and Pacific Department’s Senior Mission Chief for Sri Lanka; and Sarwat Jahan, the IMF Resident Representative in Sri Lanka.

The IMF staff team’s visit came after the first meeting of Sri Lanka’s official bilateral creditors committee, during which the island nation’s authorities formally presented a request for debt treatment. China, Saudi Arabia and Iran were in attendance as observers. The committee, co-chaired by India, Japan and France, consists of 17 members and includes Paris Club creditors as well as other official bilateral creditors.

On April 14, France, India and Japan unveiled a common platform for talks among bilateral creditors to co-ordinate restructuring of Sri Lanka’s debt.

Addressing the launch of Sri Lanka’s debt restructuring process, the IMF’s Deputy Managing Director had said that an expeditious debt resolution is needed for Sri Lanka to emerge as quickly as possible from its crisis.

Okamura also expressed hope that all bilateral creditors would participate in negotiations and complete them before the first review.

Sri Lanka owes USD 7.1 billion to bilateral creditors, government data show, with USD 3 billion owed to China, followed by USD 2.4 billion to the Paris Club of creditor nations and USD 1.6 billion to India.

The Extended Fund Facility (EFF) program of the IMF approved by its executive board in March comes with strict conditionalities for economic reforms.

Sri Lanka had to secure assurances from official bilateral creditors that they would help debt relief and/or financing to restore debt sustainability consistent with the IMF-supported EFF program, as well as an assessment that the authorities are making good faith efforts to reach a private agreement with private creditors.

As these requirements were met ahead of the IMF Board meeting in March, the IMF approved the 48-month extended arrangement of 2.286 billion SDR (Special Drawing Rights), which amounts to USD 3 billion, for Sri Lanka.

The Asian Development Bank (ADB) today approved a $350 million special policy-based loan to provide budget support to Sri Lanka for economic stabilization.

The program is part of a broader package of financial assistance anchored by the International Monetary Fund’s Extended Fund Facility for the country, which aims to stabilize the economy and lay the foundation for economic recovery and sustained growth.

Sri Lanka is facing a severe and unprecedented economic crisis. High inflation has eroded purchasing power, livelihoods have been affected, and past development gains have been reversed.

“ADB is concerned about the deep crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women,” said ADB President Masatsugu Asakawa. “ADB is committed to standing with Sri Lanka as it addresses its present challenges and strides toward economic stabilization, sustainable recovery, and inclusive growth.”

Sri Lanka has embarked on bold reforms to address the causes of both internal and external imbalances and return to a sustainable debt trajectory.

The country faces a long road to recovery and must remain steadfast in the implementation of necessary reforms, which include enhancing tax revenue collection, strengthening public financial management, improving performance of state-owned enterprises, ensuring autonomy and independence of the central bank, safeguarding financial sector stability, and bolstering governance frameworks.

"As these measures are implemented, it is essential to ensure that adequate social protection is provided. Implementing governance reforms and anticorruption measures will be critical," the ADB added.

The State Bank of India (SBI) has extended the tenure of the USD 1 billion credit facility provided to the Sri Lankan government for procurement of essential items in March 2022.

An amendment agreement was signed today (30), in the presence of the State Minister of Finance, Shehan Semasinghe, senior officials from the Ministry of Finance of Sri Lanka and officials from High Commission of India, Colombo. Officials from the State Bank of India joined the event from India virtually.

With the signing of the amendment agreement, the credit facility will be available for use of the Sri Lanka government for a period of one more year, till March 2024.

Since last year, the facility has been used for urgent procurement of fuel, medicines, food items and industrial raw materials, as per the requirements and priorities of GOSL.

The Indian government extended multi-pronged assistance of about USD 4 billion to Sri Lanka last year, through multiple credit lines and currency support, in line with India’s ‘Neighbourhood First’ policy.

Venerable Rajangane Saddharathana Thera who was arrested for making statements that could disrupt religious harmony has been remanded.

The Fort Magistrate’s Court today remanded Venerable Rajangane Saddharathana Thera until June 07, 2023.

The Police arrested Venerable Rajangane Saddharathana Thera in Anuradhapura early this morning.

The Venerable Thera was arrested based on a complaint filed by a fellow monk, Venerable Pahiyangala Ananda Sagara Thera.

The complaint accuses Venerable Rajangane Saddharathana Thera of having made statements that could disrupt religious harmony and are disrespectful to Buddhism.

Gunasinghe Suriyapperuma, the former Chairman of Sri Lanka Public Estate Workers Union, passed away at the age of 77 today (30).

He was also a former organizer of Sri Lanka Freedom Party’s Nuwara Eliya Constituency and is an alumnus of Mahinda Maha Vidyalaya, Kandapola.

Mr. Suriyapperuma, who has also served as a member of the Central Provincial Council and a Councillor of the Nuwara Eliya Municipal Council, entered into politics with the late Vijaya Kumaranatunga from the Sri Lanka People’s Party.

He is the elder brother of Sena Suriyapperuma who is a well-known social activist who has held executive positions in several banks and government institutions.

According to Mr. Suriyapperuma’s last wish, the family members have decided to conclude final rites within 24 hours. Accordingly, the remains will be cremated today (30) at 4 pm at the Nuwara Eliya Municipal Cemetery.

(Sri Lanka Mirror)

The Criminal Investigation Department (CID) has arrested a woman who had allegedly insulted Buddhism during a stand-up comedy show recently held in Colombo.

“Natasha Edirisooriya who made disrespectful remarks on the Buddhist philosophy and culture, arrested by the Criminal Investigation Department (CID) at the Bandaranaike International Airport (BIA) while attempting to leave the country” Police said.

Both the woman and another individual who had posted the relevant video online have publicly apologised for the statements made.

There are obvious signs that another crisis is being triggered in the country once again, especially at a crucial time when the country is on a path of recovery from a severe economic crisis that was acutely experienced in recent times, said the State Minister of Defence Premitha Bandara Tennakoon.

Speaking to media at the Ministry’s office in Colombo today, he raised concerns into the “various elements with vested interests eyeing to disrupt the prevailing peaceful situation” by igniting religious disputes in the country.

The State Minister also emphasized the importance of maintaining religious stability for a healthty society.

“If a person or an organized group is trying to whip up communal sentiments or work with a similar motive, we will not hesitate to strictly enforce the law in accordance with the Chapter 9 of the Constitution and Penal Code 291 (අ), (ආ) he added.”

British High Commissioner Sarah Hulton has requested the Minister of Pulic Security Tiran Alles to cooperate in the efforts taken to prevent Sri Lankan nationals from entering the United Kingdom as illegal immigrants.

Hulton visited Alles earlier this week, with the UK Foreign, Commonwealth and Development Office Director, Ben Mellor, during his visit to Sri Lanka.

They further discussed the Prevention of Terrorism Act (PTA) at length, during which Minister Alles commended the recently introduced laws in Britain, adding that they were ‘essential’ in order to maintain law and order within a country.

Matters pertaining to four persons currently being detained under the PTA were also raised during the discussion, to which Alles explained that all four persons were being detained on suspicion of their involvement in the Easter Sunday terror attacks of 2019.

High Commissioner Hulton also noted that a training workshop would be organised, via Zoom, to educate Sri Lankan police officers on the proper use of the country’s rules and laws.

Mellor, along with Sarah Hulton, also met with a wide range of stakeholders in Colombo, Jaffna and Galle.

Commenting on the matter, Hulton said, “It was great to accompany our UK Director across three provinces this week, meeting important stakeholders across civil society, businesses and government. We had productive discussions about local concerns and priorities, and economic and development opportunities.”

During their visits to Galle and Jaffna, the visiting diplomat met with the governors of the Northern and Southern Provinces, toured a Red Cross Project site to hear about how UK funding has impacted vulnerable communities, and visited Jaffna University and the historic Jaffna Library.

Meanwhile, in Colombo, they met with the Minister for Public Security Tiran Alles, State Minister for Finance Shehan Semasinghe, and Foreign Secretary Aruni Wijewardane.

President Ranil Wickremesinghe has raised concerns about the obstacles faced by students when taking exams in unfamiliar environments.

In a recent discussion, the President emphasized the need for the Ministry of Education and the Examinations Department to prioritize the convenience and progress of students over their own convenience.

Recognizing the difficulties faced by students, the President advised the education authorities to transform schools with a minimum of 75 qualified students into examination centres, provided that it doesn’t disrupt ongoing exam activities.

According to the President’s Media Division (PMD), he instructed officials to take prompt action in implementing this plan.

During the discussion, it was revealed that the 2022 (2023) GCE Ordinary Level examination, which began today (29), would be conducted in 3,568 centres, accommodating a total of 472,553 students. The government has employed approximately 40,000 officials for the smooth execution of the exams.

However, President Wickremesinghe received reports from concerned parents and students regarding the inconvenience caused by redirecting students from their own schools to other examination centres. The Ministry of Education and the Department of Examinations explained that they had made this decision due to the prevailing economic situation, aiming to limit the number of examination centres.

Understanding the impact this has on students’ mental well-being, the President stressed the importance of informing schools and students about such changes at least one year in advance. He also emphasized the necessity of establishing a formal program to conduct all examinations related to children’s education without any delay.

The President clarified that it is not the responsibility of the Examinations Department to provide reasons for not holding exams but rather the primary duty of the Ministry of Education and the Examination Department to create a conducive environment for students to take exams in familiar surroundings.

The discussion was attended by Senior Advisor to the President on National Security and Chief of Staff, Sagala Ratnayake, Secretary to the President, Saman Ekanayake, Secretary to the Ministry of Education, Nihal Ranasinghe, Commissioner of Examinations, Amit Jayasundara, and other officials.

Sri Lanka Customs says they have received instructions to pay special attention to the inspection activities at the VIP passenger terminal of the Katunayake International Airport.

Its media spokesperson Sudaththa Silva says that the instructions were received from the Ministry of Finance.

He adds that accordingly, attention will be paid to increasing the number of officers currently deployed for the relevant inspections.

Meanwhile, State Minister of Finance Shehan Semasinghe says that if people continue to misuse the airport's VIP terminal and engage in illegal activities, strict action will have to be taken against them.

Food security in Sri Lanka is improving across all provinces, according to the Crop and Food Security Assessment Mission (CFSAM) report jointly carried out in February/March 2023 by the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP).

The report estimates 3.9 million people or 17 percent of the population is in moderate acute food insecurity which is nearly a 40 percent decrease from June/July last year. Nearly 10,000 people are severely acute food-insecure, down from 66,000 people last year.

The improvement in food security stems from better food consumption, which could be attributed to reduced food prices and improved incomes among farming communities during the harvesting period when the mission was carried out.

Despite this positive trend, food insecurity remains high in certain districts, especially Kilinochchi, Nuwara Eliya, Mannar, Batticaloa, Vavuniya, and Jaffna. The highest level of acute food insecurity was found within the tea plantation communities in the Estate sector and among daily wage labourers and households who rely on social assistance programmes, such as Samurdhi, as their main source of income.

Production of cereal, including rice and maize, across the two main cropping seasons in 2022/23 is forecast at 4.1 million tonnes, 14 percent below the past five-year average, mainly due to poor plant nutrition caused by an inadequate supply of fertilizer and unaffordability of essential material inputs. However, essential fertilizers distributed to smallholder farmers by the Government, facilitated by funds received from multilateral and bilateral donor agencies, has significantly impacted production, marking an improvement in the yield with productivity in the recently harvested 2022/23 “Maha” season, 12% higher than the 2022 “Yala” season.

Representative of FAO to Sri Lanka and the Maldives, Mr. Vimlendra Sharan speaking on CFSAM Report findings said, “The Crop and Food Security Assessment Mission (CFSAM) report is an eye-opener on the continuing vulnerabilities and challenges that exist within the food systems of Sri Lanka. This report and its findings will no doubt serve as a guiding light for policymakers and stakeholders to collectively work towards ensuring food security, strengthening agricultural resilience and mitigating risks faced by farmers and rural communities who have been disproportionately impacted by the economic crisis. FAO remains committed to supporting Sri Lanka in their efforts towards achieving sustainable food systems, food security and zero hunger."

“After many months of challenges, we are finally witnessing an improvement to the country’s food security,” said Abdur Rahim Siddiqui, WFP Sri Lanka’s Representative and Country Director. “But there is more to be done. A high number of households -- more than 60 percent -- are adopting negative measures to put food on the table, including borrowing money and purchasing food on credit. WFP will extend its emergency operation, which commenced last year, to provide food rations and cash assistance to people identified as food insecure.”

Mission recommendations:

The joint FAO/WFP Mission recommends providing immediate support to farmers, particularly by releasing available fertilizer stocks to enhance production and productivity in the ongoing “Yala” season and make urgent policy decisions to import fertilizers in time for the 2023/24 “Maha” cultivation season. The report also recommends any move for reducing or removing fertiliser subsidy to be in a gradual and phased manner, giving adequate time to the farming community to adapt.

Other recommendations include the establishment of a “Fertilizer Task Force” to streamline fertilizer procurement and distributions as well as to strengthen adaptive research on climate smart agriculture and sustainable farming practices to improve fertiliser use efficiency. Further, to minimize the impact on the livestock and fisheries sectors, the mission recommends providing adequate support to increase fodder and feed crop production.

Further recommendations include continuing food and/or cash assistance to facilitate access to food among households most vulnerable to food insecurity. In the long-term, increased livelihood support to food-insecure households and resilience-building initiatives are also recommended to prevent them from compromising on productivity and their capacity to cope with future shocks.

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A group of parliamentarians has handed over a letter to Speaker Mahinda Yapa Abeywardene, requesting to take suitable action against MP Ali Sabri Raheem.

Puttalam District MP Ali Sabri Raheem was arrested at the Bandaranaike International Airport (BIA) along with a stock of undeclared gold and mobile phones on Tuesday (23).

The Customs officials on duty at the airport had impounded a total of 3.5kg of undeclared gold and 91 mobile phones from the possession of the parliamentarian who was returning to the island from overseas.

Later, the MP was fined Rs. 7.5 million and released on payment of same while the undeclared gold and mobile phones were confiscated.

However, the aforementioned group of MPs, who submitted a letter against MP Raheem, stresses that he has misused the MP privileges.

Meanwhile, State Minister of Finance Ranjith Siyambalapitiya yesterday denied the Government was shielding Raheem.

“Some are claiming he was arrested and released quickly. This is not true. He was detained and released according to the Customs Ordinance, which states that if the accused is willing to pay a fine, the case can be closed. If the accused refuses, then steps will be taken to initiate magistrate proceedings,” he said.