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Experts say only debt cancellation offers Sri Lanka a chance of recovery - newsfirst.lk - India - Sri Lanka
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Experts say only debt cancellation offers Sri Lanka a chance of recovery
Some of the world’s most powerful hedge funds and other investors are holding up vital help for crisis-hit Sri Lanka by their hardline stance in debt-relief negotiations after the Asian country’s $51bn (£42bn) default last year, according to 182 economists and development experts from around the world.Instead of geopolitical manoeuvring, all of Sri Lanka’s creditors must ensure debt cancellation sufficient to provide a way out of the current crisis, said a statment from the economists and experts on Monday (9).In a statement the group that said that extensive debt cancellation was needed to give the economy a chance of recovery and that Sri Lanka would be a test case of the willingness of the international community to tackle a looming global debt crisis.The group – including the Indian economist Jayati Ghosh, Thomas Piketty, the author of the bestselling book Capital, and Greece’s former finance minister Yannis Varoufakis – said private sector creditors such as investment companies and hedge funds were preventing a deal.Private creditors own almost 40% of Sri Lanka’s external debt stock, mostly in the form of international sovereign bonds, although the higher interest rates levied on the bonds mean they receive more than 50% of external debt payments.Such lenders charged a premium to lend to Sri Lanka to cover their risks, which accrued them massive profits and contributed to Sri Lanka’s first ever default in April 2022, said the statement."Lenders who benefited from higher returns because of the “risk premium” must be willing to take the consequences of that risk. Indeed, ISBs are now trading at significantly lower prices in the secondary market.
Ranil Wickremesinghe - Medical aid through President’s Fund to be increased in Sri Lanka - newsfirst.lk - Sri Lanka
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Medical aid through President’s Fund to be increased in Sri Lanka
Colombo (News 1st) – A committee consisting of medical experts has been appointed to obtain the necessary recommendations to increase the financial assistance currently paid for surgery and treatment through the President's Fund in Sri Lanka.The President's Media Division said President Ranil Wickremesinghe issued directives to to increase the amount of medical assistance paid as soon as the recommendations of the committee are made.Accordingly, in the first few months of 2023, the allowances paid as medical aid will be increased.The PMD said apart  from the number of diseases for which medical aid will be paid, the committee has been instructed to give necessary recommendations about the conditions for which further medical aid should be paid. As soon as the instructions are received, the necessary approvals will be obtained and the amount of medical aid paid as well as the list of diseases for which medical aid will be paid will be updated.Taking into account the transportation and other economic difficulties faced by the public who submit applications to the President's Fund for receiving medical aid, text messages will be sent on six occasions to cover each occasion from the time the application is submitted to the point the payment is made. It is also planned to further streamline these activities in 2023.
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