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Is Sri Lanka on track to access funds from the IMF? - newsfirst.lk - China - city Beijing - Japan - India - Sri Lanka - Washington
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Is Sri Lanka on track to access funds from the IMF?
Sri Lanka, which is under an ongoing economic crisis, is headed for another major turbulence as the country will not be able to secure the much-needed IMF loan in December as its ally and debtor China is yet to initiate a dialogue on debt restructuring with Colombo.A report in the Hindustan Times quoting financial analysts based in Washington said that Sri Lanka will miss the IMF deadline and will have to wait till March next year to secure a loan of $2.9 billion, as Beijing was involved in the 20th National Party Congress.The next meeting of the IMF executive board is in March 2023, Sri Lanka will most likely have to wait until then for IMF Board approval, and access to the funds.Why is China's involvement so important to access IMF funds?Sri Lanka is now considered a country that defaulted on its external debt because the island nation lacked foreign reserves for debt servicing.According to the Central Bank of Sri Lanka and the Finance Ministry, Sri Lanka's total debt was $36 billion at the end of 2021.Of this total debt, Colombo owes some 52% in bilateral credit to China, 19.5% to Japan, and 12% to India.One of the main conditions for Sri Lanka to tap the USD 2.9 Billion funding from the International Monetary Fund is debt reconciliation and restructuring.Bilateral means transactions between two countries, and there is an institution that operates with the support of the International Monetary Fund to talk about bilateral debt, and this is called the Paris Club.Sri Lanka has obtained a large number of loans from Japan, India, and China, and among them, only Japan is a member of the Paris Club.India is openly supporting Sri Lanka's engagement with the IMF, and avenues are open for Sri Lanka to discuss debt
Tamil Nadu worried over increased presence of Chinese Army in Sri Lanka - newsfirst.lk - China - India - Sri Lanka
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Tamil Nadu worried over increased presence of Chinese Army in Sri Lanka
(The Hindu) – Tamil Nadu has flagged serious security concerns over the increased presence of the People’s Liberation Army (PLA) of China in Sri Lanka. An alert issued by the State’s intelligence agency a few days ago said the activities of the Chinese in the neighbouring country is a concern to national security and called for intensified vigil along the coastline.The movement of PLA cadres and deployment of hi-tech gadgets such as satellites, drones and other communication equipment in northern Sri Lanka required constant surveillance in coastal districts, the advisory sent to all cities/districts in the State said. Citing sources, the alert claimed that the PLA deployed sophisticated gadgets in the garb of launching sea cucumber farming.The security advisory comes days after an alert was issued by the same agency warning that a handful of Chinese nationals had clandestinely entered India via the sea route with the assistance of cadres belonging to a Sri Lanka-based political party.The Tamil Nadu Coastal Security Group had also, citing a Central intelligence agency, issued an alert on the Chinese ship used to monitor satellites, rockets and inter-continental missile launches of China docked at Hambantota Port, and called for adequate security arrangements in view of vital installations such as nuclear establishments and seaports along the Tamil Nadu coast.The free movement of Chinese nationals in many parts of northern Sri Lanka, including Mullaitheevu, Paruthitheevu, Analaitheevu, Meesalai, and Chavakkacheri, had triggered discontentment among Tamil fishermen.
Ranil Wickremesinghe - President optimistic that debt restructuring discussion will end successfully following talks with the Chinese Finance Minister - newsfirst.lk - China - Japan - India - Sri Lanka - Washington
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President optimistic that debt restructuring discussion will end successfully following talks with the Chinese Finance Minister
President Ranil Wickremesinghe stated that he had recently discussed Sri Lanka’s debt restructuring with the Chinese Finance Minister and he is optimistic that the discussions in this regard would be concluded successfully.The President further mentioned that the delegation headed by the State Minister of Finance, who is currently in Washington, held initial discussions yesterday (15) with the International Monetary Fund and the three main countries, China, India and Japan that have given loans to the country. He said that the government is giving priority to immediately solve the problem of the country’s bankruptcy and to ensure food security.President Ranil Wickremesinghe made these remarks following an observation tour of the cultivated lands in Rathumada-Weerakandawala area in Siambalanduwa Divisional Secretariat this morning (16).The President also discussed the progress of the implementation of the food security program in Monaragala district with government officials.He said that there is no problem with having debates and also recalled the statements made by some people that they would come forward and shed blood and said that one should live before shedding blood.The President mentioned that if a proper program is not implemented to provide food to the people, they will not have to shed blood but will starve to death.
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