Sri Lanka has told hundreds of thousands of Russians and some Ukrainians staying in the country to escape the war that they must leave in the next two weeks, immigration officers said.

The immigration controller issued a notice to the tourism ministry asking Russian and Ukrainian people staying on extended tourist visas to leave Sri Lanka within two weeks from 23 February.

Just over 288,000 Russians and nearly 20,000 Ukrainians have traveled to Sri Lanka in the last two years since the war began, according to official data.

Commissioner-General of Immigration said the “government is not granting further visa extensions” as the “flight situation has now normalised”.

However, the office of president Ranil Wickremesinghe ordered an investigation of the notice to the tourism ministry in an apparent bid to prevent diplomatic tensions.

The president’s office said that the notice had been issued without prior cabinet approval and the government had not officially decided to revoke the visa extensions, reported the Sri Lankan newspaper Daily Mirror.

The exact number of visitors who extended their stay beyond the typical 30-day tourist visa duration remains unclear.

However, concerns have been raised over thousands of Russians and a smaller number of Ukrainians staying in the country for an extended period of time and even setting up their own restaurants and nightclubs.

Tourism minister Harin Fernando told Daily Mirror that the ministry has been receiving complaints of some Russian tourists running unregistered and illegal businesses in the southern part of the country.

Raids were conducted by the authorities following discussions with the Immigration Department, he said.

It comes amid a furious social media backlash over Russian-run businesses with a “whites only” policy that strictly bars locals. These businesses include bars, restaurants, water sports and vehicle hiring services.

In a bid to boost tourism and recover from its worst economic crisis since 2022, Sri Lanka began granting 30-days visas on arrival and extensions for up to six months.

In April 2022, the nation defaulted on its $46bn (£36 bn) foreign debt. The economic crisis triggered violent street protests for several months and ultimately culminated in the resignation of then-president Gotabaya Rajapaksa three months later.

Source: Independent

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London, (16/11 – 57)

Sri Lanka President Ranil Wickremesinghe has laid out the bankrupt country’s budget for 2024, drawing mixed reviews as he strives to meet the demands of an International Monetary Fund bailout program without sowing further public resentment ahead of expected elections.

Some observers applauded the proposals, not only for what they included but also what they did not, no new taxes on top of hikes already announced. But others expressed concern that the budget seemed designed to placate certain voters, and only temporarily, while not doing enough to help the struggling masses.

Sri Lanka’s election-year budget was presented on 13 November, and it straddles line between IMF and its voters. The 2024 plan is praised for ‘sticking to reform,’ but criticized for the apparent contradictions not doing enough to help the struggling masses.

Wickremesinghe unveiled the budget on Monday, announcing his government’s plan to increase tax revenue to 3.82 trillion rupees ($11.67 billion), up from this year’s estimated 2.6 trillion rupees. Two weeks ago, the government had announced a value-added tax (VAT) increase to 18% from 15%, effective from January, as part of efforts to meet targets set by the IMF.

The fiscal deficit target is estimated at 2.85 trillion rupees, or 9.1% of gross domestic product, higher than the revised 8.5% of GDP for the current year. “We are aware of the difficulties faced by the people of this country. The path toward a stable and developed economy is not beautiful. It is difficult, hard and challenging,” Wickremesinghe said in his budget speech, following a recent uptick in protests demanding salary hikes to overcome high living costs.

The president described a country at a crossroads as it attempts to climb out of bankruptcy. “If we successfully navigate through this challenging period, we can create a free and decent society. Instead, if we continue to build sand castles by giving relief to the people based on political motives, the country will again be bankrupt.”

Still, Wickremesinghe proposed new relief measures for civil servants and pensioners. The plans call for handing out an additional 10,000 rupees in cost-of-living allowances to 1.3 million government employees, while raising allowances for 730,000 public pension recipients to 5,025 rupees from the current 2,500 rupees.

Sri Lankans are reeling from an economic crisis that has driven up the costs of essentials, although inflation has slowed.   Meanwhile, in a nod to the IMF, Wickremesinghe proposed a massive 3 trillion rupee allocation for foreign debt restructuring and the settlement of international sovereign bonds under the program. After Sri Lanka defaulted on its foreign debt in 2022, the fund came to the rescue earlier this year with a $2.9 billion bailout.

The country failed its first review of the program in September, but reached a staff-level agreement to unlock a new tranche last month.

According to Wickremesinghe, under the debt restructuring supported by the IMF, public debt is expected to decline from 129% of GDP in 2022 to 95% by 2032. He emphasized the benefits of this shift toward sustainability — greater macroeconomic and financial sector stability — for the nation of about 22 million people.

Wickremesinghe reported that reform measures implemented over the last 18 months have already resulted in significant improvements in Sri Lanka’s macroeconomic position. A primary budget deficit of 5.7% of GDP at the end of 2021 turned into a primary budget surplus in the first half of 2023, he said. Tax revenue grew 50% in the first six months of 2023, despite a deep economic recession. The inflation rate has dropped from 70% in September 2022 to 1.3% in September 2023, and foreign exchange reserves have recovered to above $3.5 billion.

“The economy is being healed due to the correct procedures and methodologies we followed during the past year, building the foundation of this system,” Wickremesinghe argued.

The budget receives much of both applauses and criticism.

Murtaza Jafferjee, chair of the Colombo-based Advocata Institute think tank, praised the president’s budget. “He is sticking to the reform and economic restructuring pathway and is not being excessively political,” he told Nikkei Asia. “This is the kind of budget that we always needed, and the language is not sugarcoated and it is factually correct.”

Mujibur Rahman, a member of parliament representing the opposition Samagi Jana Balawegaya alliance, pointed out what he sees as an inherent contradiction in the plan. “From January, they are increasing VAT, which means the cost of living will increase further, and at the same time they say they will increase the allowance for government workers. So, he is giving from one hand and taking it from the other.”

Sunil Adihettige, a driver employed by a private company in Colombo, was also disappointed. “I was hopeful that the president will announce some relief so that the prices of food items and our monthly bills will reduce. But he only said government employees will be getting a salary increase, but as we are in the private sector, we won’t even benefit from this.”

“Overall, businesses were significantly affected by extensive taxation, but people are adjusting to these increases as they had no other choice and also because they understood the country’s situation,” said Imtiaz Buhardeen, an entrepreneur and investor in Colombo. “The only fear was the possibility of additional tax increases on Monday, but it’s a big relief that there are no new increases.”

Ranjan Jayalal, a trade union leader, suggested the support for government employees was little more than a ploy. “The allowance is expected to be paid from April onwards, but after another couple of months, there will be elections, and then everything will change,” he said.

The next election must be called by September 2024.

Jayalal added that poor people are facing such hardship that many don’t even switch on the lights in their homes due to high electricity costs.

Source

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Brussels (08/11 – 50)

On March 20, the IMF approved a $3 billion Extended Fund Facility (EFF) to support Sri Lanka amid its economic crisis. The approval is expected to pave the way for other financial institutions to extend support to the bankrupt South Asian country. IMF program was made possible largely due to the untiring efforts of the President Ranil Wickremesinghe.

The IMF links financial assistance to a country to policy reform, a conditionality that usually imposes political as well as economic changes in the recipient nation. The logic behind IMF conditionality is multifold. It is supposed to prevent moral hazard by governments that receive loans. These conditions allow the IMF to monitor the behavior of the recipient states and allegedly promote best practices and good governance.

Sri Lanka has been to the IMF 16 times before; five of these since 2000. The full amount of the IMF loan was not disbursed on six occasions because Sri Lanka did not fully comply with the conditions of the loans. This included the previous EFF in 2016, when the conditions imposed by the IMF built additional pressure on the domestic economy. There has been much skepticism about Sri Lanka adhering to the more stringent IMF conditions this time around.

Despite the skepticism that prevails among journalists and economists, the IMF is very happy about the progress Sri Lanka is making on the commitments it made as a part of the IMF’s four-year EFF to the country.

An IMF delegation, which was in Colombo recently to assess the progress of the agreement, is optimistic. IMF Director of Asia and Pacific Department Krishna Srinivasan told a press conference in Colombo on May 15 that the Sri Lankan government has shown “commitment to the reform effort” that is a part of the agreement with the IMF.  He added that the “authorities are making good faith efforts to negotiate with all the creditors, both private creditors and official creditors.”

Ranil Wickremesinghe took over as President of Sri Lanka in July 2022 when the country was in the middle of its worst economic and political crisis since independence in 1948. On March 20, 2023, the IMF approved a $3 billion Extended Fund Facility (EFF) to support Sri Lanka amid its economic crisis.

Peter Breuer, IMF’s Senior Mission Chief for Sri Lanka, Asia, and Pacific Department said they “see things developing more or less in line with expectations.”

Srinivasan added that Sri Lanka had to complete a number of prior actions before the IMF approved its bailout package. These actions were extensive and required a significant commitment from the Sri Lankan government.

Among these are cost-reflective of a number of goods and services that the government had subsidized for decades.  Sarwat Jahan, the IMF Resident Representative in Sri Lanka said the Ceylon Petroleum Corporation (CPC) and Ceylon Electricity Board (CEB) would have to recover their costs until the end of the IMF program.

The government met all these requirements, which shows that they are serious about implementing the reforms necessary to address the country’s economic crisis, Srinivasan said.

The conditions attached to IMF loans often involve actions aimed at discontinuing industry subsidies, avoiding exchange rate manipulation, adjusting budget priorities, and regulating wage levels. Leaders, who face diverse political limitations, differ in their willingness to engage in an agreement with the IMF and make compromises in these four areas.

Considering that IMF loan conditionality agreements usually involve implementing fiscal austerity measures, leaders with larger winning coalitions will encounter more challenges when attempting to negotiate an agreement for IMF financing.

On the other hand, when a regime maintains power through a narrower network of closely-connected supporters, he or she finds it easier to enter into an agreement with the IMF.

Miles Kahler, a senior fellow for global governance at the Council on Foreign Relations in Washington, DC, in his 1993 book chapter titled “Bargaining with the IMF: Two-Level Strategies and Developing Countries,” outlines two key aspects of domestic politics that influence the process of loan negotiations: firstly, the degree to which a technocratic elite is insulated from economic interests, and secondly, the frequency with which elites face political challenges like elections.

Another factor that can impede the formation of a loan agreement is the presence of multiple veto actors, such as a separation of powers or the existence of multiparty governing coalitions.

Kahler says that when a country has a higher number of veto actors capable of obstructing a loan agreement, the scope of domestic political consensus becomes narrower, resulting in increased negotiation costs for the IMF. Typically, the count of veto actors is determined by assessing the number of parties in a government coalition in countries where genuine political competition exists.

This explains why it was extremely difficult for former President Gotabaya Rajapaksa, who came into power through a coalition of populism and with the support of a number of interest groups, from big businesses to professional associations, to enter into negotiations with the IMF.

On the other hand, Wickremesinghe is the head of the United National Party, a political party that obtained around 250,000 votes from 15 million eligible voters. He has one MP in Parliament, Wajira Abeywardana, who is a staunch loyalist. Wickremesinghe is backed in parliament by the Sri Lanka Podujana Peramuna (SLPP), whose MPs depend on him for political survival and would vote for any legislation that he brings forth.

Sri Lankan legislators are entitled to several perks at the end of the full tenure of five years and most of the SLPP MPs that back Wickremesinghe are adamant on completing their terms. Wickremesinghe has also indicated that there will be no elections until the economy is stabilized and it is likely that the first election Sri Lankans will see is a presidential election, probably in 2024.

Therefore, Wickremesinghe can implement the IMF recommendations completely, as he is not answerable to any political coalition or interest groups. Neither does he face an election. Wickremesinghe’s personal ideology also aligns with that of the IMF. It is unlikely that these factors were ignored by the IMF when the loan was approved and when they evaluate whether Sri Lanka will adhere to IMF conditionalities.

Source

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France and the United Kingdom (UK) have jointly made a request in favour of Sri Lanka to the court of the Southern District of New York, for a six-month freeze on any litigation in the Hamilton Reserve Bank case until Sri Lanka’s external debt restructuring is completed, the Financial Times reported.

Accordingly, last week the two countries filed a joint “amicus curiae” to the New York judge hearing the case, arguing in favour of Sri Lanka’s request for a six-month freeze on any litigation.

The co-signatories in their “amicus curiae” want the judge to grant Sri Lanka the six-month stay it has requested, because they worry that the lawsuit by Hamilton Reserve Bank/Benjamin Wey could wreck ongoing restructuring talks.

France and UK have jointly made a request to the court of the Southern District of New York, for a six-month freeze on any litigation in the Hamilton Reserve Bank case until Sri Lanka’s external debt restructuring is completed.

“A judgement in favour of the plaintiff before the completion of the debt restructuring process would risk disrupting the ongoing negotiations by creating an incentive for holdout creditors, thereby jeopardising the comparability of treatment between different categories of creditors,” the filing said.

It also said that the relevant principle is at the core of all sovereign debt restructuring processes, as it is key to securing the consent of all creditors, and that disruption would lead to delays in the negotiations, delaying the cash disbursement by the International Monetary Fund to the debtor country and resulting in significant costs for Sri Lanka and the official creditors’ taxpayers.

France is naturally interested in the Sri Lanka lawsuit as it hosts the so-called Paris Club, where government-to-government debts are restructured. The UK is part of the Paris Club but presumably cosigned the amicus brief because it historically oversaw the London Club, the less formal group for private creditors to negotiate with sovereign borrowers.

Last month, the Financial Times also reported that the United States (US) Government has also intervened in the matter where “the US is actively considering whether to file a Statement of Interest with respect to the pending motion to stay”.

The Hamilton Reserve Bank vs. Government of Sri Lanka case was filed in June 2022 after Sri Lanka declared bankruptcy and defaulted on $ 1 billion of this particular bond issue, of which Hamilton Reserve Bank holds $ 250 million.

Source : The Morning

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London (05/11 – 44.44)

Benjamin Wey, a Chinese-American financier, founder of Fintech Holdings and a history of legal trouble, is suing Sri Lanka for $250 million. Wey claims that he was assured by Sri Lanka’s central bank governor that the country would repay a $250 million bond. However, Sri Lanka defaulted on the bond in April 2022.

Wey is seeking to collect the full amount of the bond, plus interest. He has filed a lawsuit in the US District Court for the Southern District of New York.

The lawsuit is a major setback for Sri Lanka, which is already facing a severe economic crisis. The country is struggling to repay its debts, and the lawsuit could make it even more difficult to secure a bailout from the International Monetary Fund (IMF).

The US government has intervened in the lawsuit, and it is unclear how the case will be resolved. However, it is likely to drag on for several years, and it could further destabilize Sri Lanka’s economy.

Notorious financier, Benjamin Wey wants to collect from Sri Lanka, the full amount of the $250 million bond plus interest. He has filed a lawsuit in the US District Court for the Southern District of New York.

Wey is a controversial figure. He was arrested in 2015 on charges of fraud, but the charges were dropped. He was also sued for sexual harassment, and he settled the case for $5.65 million.

Wey is the founder of Fintech Holdings, a holding company that owns several businesses, including Hamilton Reserve Bank (HRB). HRB is the entity that is suing Sri Lanka.

Sri Lanka is facing a severe economic crisis. The country is struggling to repay its debts, and it has been forced to default on several bonds. The crisis has led to widespread shortages of food, fuel, and other essential goods.

The IMF has offered to bail out Sri Lanka, but the government has been slow to agree to the IMF’s terms. The lawsuit filed by Wey could further complicate the negotiations with the IMF.

It is unclear how the lawsuit will be resolved. However, it is likely to drag on for several years. The case is complex, and there are many legal issues that need to be resolved.

The lawsuit could also have a significant impact on Sri Lanka’s economy. If Wey is successful, it could force the country to default on even more debt.

This could further destabilize the economy and make it even more difficult for Sri Lanka to recover from the crisis.

The lawsuit is a major setback for Sri Lanka, but it is also a test of the country’s legal system. If Sri Lanka is able to defend itself against the lawsuit, it will send a message to other investors that the country is a safe place to do business.

The outcome of the lawsuit will also have implications for the IMF. If the IMF is seen as being unable to protect its borrowers from predatory lawsuits, it could discourage other countries from seeking bailouts from the IMF.

The lawsuit is a complex and far-reaching case. It will be interesting to see how it is resolved and what impact it has on Sri Lanka, the IMF, and the global economy.

Source : Lanka News Line

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Sri Lanka is mired in a deep political and economic crisis and the country’s then President Rajapaksa has flown out of the country, days after a huge crowd of protesters stormed his residence in July 2022. Protesters for months have demanded the resignation of President Gotabaya Rajapaksa, whose government has been blamed for chronic mismanagement of the country’s finances.

The island nation of 22 million people has suffered months of lengthy blackouts, acute food and fuel shortages, and galloping inflation in its most painful downturn on record.

Island nation of Sri Lanka is mired in a deep crisis, they ousted their president who fled the country days after a huge crowd of protesters stormed his residence in July 2022. The country’s 22 million people have suffered months of lengthy blackouts, acute food and fuel shortages, and galloping inflation in its most painful downturn on record.

Here is how the crisis unfolded:

April 1: State of emergency

Rajapaksa declares a temporary state of emergency, giving security forces sweeping powers to arrest and detain suspects, after a spate of protests.

April 3: Cabinet resigns

Almost all of Sri Lanka’s cabinet resigns at a late-night meeting, leaving Rajapaksa and his brother Mahinda – the prime minister – isolated. The governor of the central bank, having resisted calls to seek a bailout from the International Monetary Fund (IMF), announces his resignation a day later.

April 5: President loses majority

President Rajapaksa’s problems deepen as finance minister Ali Sabry resigns just a day after he was appointed. The embattled leader loses his parliamentary majority as former allies urge him to quit. He lifts the state of emergency.

April 10: Medicine shortages

Sri Lanka’s doctors say they are nearly out of life-saving medicines, warning that the crisis could end up killing more people than the coronavirus.

April 12: Foreign debt default

The government announces it is defaulting on its foreign debt of $51bn as a “last resort” after running out of foreign exchange to import desperately needed goods.

April 19: First casualty

Police kill a protester, the first casualty of several weeks of anti-government protests. The next day, the IMF says it has asked Sri Lanka to restructure its colossal external debt before a rescue package can be agreed.

May 9: Day of violence

A mob of government loyalists bussed in from the countryside attacks peaceful protesters camped outside the president’s seafront office in Colombo. Nine people are killed and hundreds more injured in the reprisal attacks that follow, with crowds targeting those responsible for the violence and setting fire to the homes of politicians.

Mahinda Rajapaksa resigns as prime minister and has to be rescued by troops after thousands of protesters storm his residence in Colombo. He is replaced by Ranil Wickremesinghe, a political veteran who had already served several terms as premier.

May 10: Shoot-to-kill orders

The defence ministry orders troops to shoot on sight anyone involved in looting or “causing harm to life”. But protesters defy a new government curfew, which is rolled back at the end of the week. The top police officer in Colombo is assaulted and his vehicle set ablaze.

June 10: ‘Humanitarian emergency’

The United Nations warns that Sri Lanka is facing a dire humanitarian crisis, with millions already in need of aid. More than three-quarters of the population had reduced their food intake due to the country’s severe food shortages, the UN says.

June 27: Fuel sales suspended

The government says Sri Lanka is nearly out of fuel and halts all petrol sales except for essential services.

July 1: New inflation record

The government publishes data showing inflation has hit a record high for the ninth consecutive month, a day after the IMF asks Sri Lanka to rein in prices.

July 9: President’s house stormed

President Rajapaksa flees his official residence in Colombo with the assistance of troops, shortly before demonstrators storm the compound. He is taken to an undisclosed location. Footage from inside the residence shows jubilant protesters jumping in the pool and exploring its stately bedrooms.

Wickremesinghe’s residence is set on fire. Police say he and his family were not at the scene. Rajapaksa later offers to step down on July 13, parliamentary speaker Mahinda Abeywardana says in a televised statement.

July 13: President flees country

President Rajapaksa flies to the Maldives on a military aircraft, accompanied by his wife and a bodyguard. His departure comes after a humiliating airport standoff in Colombo, where immigration staff did not allow VIP services and insisted all passengers go through public counters.

July 21: Sri Lanka has a new president

Ranil Wickremesinghe was sworn in as the President of Sri Lanka.

Source: Al Jazeera

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US district judge, Denise Cote yesterday granted Sri Lanka’s request for a six-month halt on a creditor lawsuit against the country. Hamilton Reserve Bank, an obscure and tiny St Kitt’s bank with interesting ties, says it has accumulated a big chunk of one of Sri Lanka’s now-defaulted bonds and had been suing it for immediate repayment.

Sri Lanka had asked for a stay on these legal proceedings to let it restructure its overall pile of debt in some peace and quiet, and had gotten heavyweight support from the UK, France and the US government.

Judge Cote ruled, “The Court recognizes that a stay will prejudice the plaintiff’s ability to obtain a prompt judgment. The requested stay, however, is not indefinite. Sri Lanka seeks a six-month stay of this litigation while it conducts sovereign debt restructuring negotiations with sovereign and commercial creditors. Moreover, if Hamilton prevails on its claim at some future date, any judgment will be subject to pre-judgment interest. Accordingly, the prejudice to the plaintiff is limited.”

The judge also implicitly recognised that the public interest in an orderly restructuring trumped HRB’s legal rights for a summary judgment.

While Hamilton’s rights are unquestionable as it really is a jilted Sri Lankan creditor, the court is willing to slow-walk things for the sake of other creditors, Sri Lanka and the amorphous principle of orderly workouts.

“The private interests of and burden on the defendant are significant — a judgment for Hamilton would likely threaten the complex debt negotiations and, hence, the successful economic rehabilitation of Sri Lanka. Hamilton’s claim that any such prejudice is “wholly speculative and implausible” must be rejected. A judgment for Hamilton would provide an incentive to other bondholders to engage in line-jumping litigation and deter commercial creditors from participating in the restructuring negotiations. As France and the UK explain, a decision in favor of Hamilton would provide a “strong incentive” for holdout creditors to forgo participation in voluntary restructuring. Moreover, the IMF funding is contingent on “a sovereign debt restructuring that meets debt sustainability targets.” A breakdown in restructuring negotiations could threaten Sri Lanka’s progress towards these IMF targets, its economic recovery, and the well-being of its citizenry.

This supports the interests of persons not parties to the civil litigation, including Sri Lanka’s official bilateral creditors and private commercial creditors. If judgment were entered for Hamilton, the plaintiff may assert that it has priority in recovery while the debt restructuring negotiations are ongoing. As described in the Paris Club Amicus Brief, “the implementation of comparability of treatment among creditors is of the utmost significance, as it serves as the bedrock for obtaining creditors’ consent to the debt restructuring.”

“In August 2021, Hamilton began to purchase the bonds at issue here. Hamilton asserts that it is the beneficial owner of over $240 million in principal amount of Sri Lanka’s international sovereign bonds that were due in July 2022 (the “Bonds”). The Bonds provide for interest payments of 5.875% per annum, paid semi-annually on January 25 and July 25 of each year, from January 25, 2013 through July 25, 2022. Following Sri Lanka’s moratorium on foreign debt repayments in the Spring of 2022, Sri Lanka failed to pay the principal and interest amount due to the plaintiff when those bonds matured on July 25, 2022. Hamilton alleges that, as a result of Sri Lanka’s default, it is owed $242,990,000 in principal and $7,137,831.25 in accrued interest (before accounting for pre- and post-judgment interest). Hamilton represents that it has not participated, and does not wish to participate, in Sri Lanka’s restructuring negotiations.”

This indicates that Hamilton does not control enough of the bond in question to block the use of collective action clauses, which radically change things.

HRB had said that it held $250mn of the bond in question. The collection action clauses embedded in the bond stipulate that if a restructuring deal is struck by 75 per cent of holders it is binding on all of them, so $250mn would give HRB enough votes to block any deal it didn’t like. But $243mn is narrowly short.

The bank could get someone else to join it, or might be sitting on another sliver that gives it a blocking stake. Or maybe this is just wrong. But if this is true, then Sri Lanka’s situation will look much better.

Source: Financial Times

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Berlin (3/11 – 40)

Sri Lankan President Ranil Wickremesinghe will visit China in the upcoming week as the crisis-hit country makes progress on debt restructuring talks with its biggest lender.

Wickremesinghe took office in July last year, after a popular uprising, brought on by an economic meltdown, had forced his predecessor out of power. His Oct. 15-19 visit to Beijing will be his first to China since then.

Sri Lankan President Ranil Wickremesinghe, who is also finance minister, has been leading Sri Lanka’s push to manage its heavy debt and keep funds flowing from a $2.9 billion International Monetary Fund (IMF) programme. He will visit China to continue debt talks.

Wickremesinghe, who is also finance minister, has been leading Sri Lanka’s push to manage its heavy debt and keep funds flowing from a $2.9 billion International Monetary Fund (IMF) programme.

He will attend a Belt and Road Forum in Beijing that would mark the 10th anniversary of the initiative championed by China’s President Xi Jinping to develop global infrastructure and energy networks.

Wickremesinghe is expected to meet Xi on the sidelines of the forum, said the source who declined to be named as he was not authorised to speak with the media. The Sri Lankan leader intends to meet China’s finance and foreign ministers too.

Sri Lanka owes Chinese lenders – bilateral and commercial – around $7 billion. It reached an agreement with the Export-Import Bank of China on Thursday covering about $4.2 billion of outstanding debt but is still working with other key bilateral creditors including Japan and India on reaching a debt restructuring plan.

Sri Lanka defaulted on its foreign debt in May last year after its dollar reserves fell to a point where the island nation of 22 million people could no longer pay for essential imports like fuel and medicine.

Sri Lanka needs to reach agreements with creditors to push forward its first review of the IMF programme, which will release a second tranche of about $334 million. The first tranche was released in March.

The country has been a key receiver of loans under China’s Belt and Road infrastructure drive, helping it to build highways, a port, an airport and a coal power plant.

Source

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London, Delhi, Mumbai (28/10 – 10)

England’s title defense in the 2023 Cricket World Cup is practically over, after their fourth defeat in five group-stage matches. Jos Buttler and Co. are coming to the tournament in India as the defending champions, having won their first title in history with the 2019 edition. The 2023 Cricket World Cup turns out to be a disaster for Matthew Mott’s team.

From day one onwards, England’s show in the tournament has been painfully dismal, losing by 9 wickets at the hand of New Zealand in the 5 October opening match. They seemed to have gotten back on track after a 137-run win over Bangladesh, in their second match on 10 October.

Alas, the world number three got humiliated by Afghanistan, who won by 69 runs in their third match on 15 October. England put in another poor performance on 21 October when South Africa won by 229 runs over them – marking one of England’s all-time worst defeats.

“It is a real low point for us. It felt like a bad dream,” said England coach Matthew Mott after the record loss. “It’s really clear for us now. We just need to win every game we’re in. We’ve got a lot of work to do; we know that. We are not happy with where we are at, but we’re going to have to turn it around.”

Instead, England’s World Cup is all but over after an 8-wicket defeat by Sri Lanka on 26 October. England is not mathematically out but now must win all of their remaining games. – facing unbeaten host India on Sunday, in the fond hope an unlikely set of results go their way.

“It’s incredibly tough, an incredibly disappointing tournament. As captain, you feel that a lot,” said Jos Buttler. “We’ve been short of our best by a very long way. I’m disappointed for myself and the boys that we’ve not shown a good account of ourselves. I can’t fault the guys’ efforts; we’re just a long way short of our best. A captain must lead from the front and play well. I’ve been a long way short of my best and that’s filtered through the rest.”

While a full half of the 2023 team are veterans of the 2019 winning squad, the likes of Buttler, Mark Wood, Ben Stokes, Adil Rashid, and Moeen Ali could not save England from their first-ever loss to Afghanistan, their biggest-ever defeat by runs to South Africa, and an 8-wicket hammering by Sri Lanka. Note that England has an ageing team, with 11 of its 15 players in their 30s.

Former Captain Nasser Hussain called it “the end of an era” – an appraisal hard to argue, given all the signs. “I wouldn’t have changed the side before this tournament but I would definitely be thinking about changing it now, because it does feel like the end of an era,” said Hussain.

Interestingly, England did win the 2019 Cricket World Cup after overhauling their team from the 2015 edition, which they got knocked out in the group stage. Is it not time to repeat that shuffle, changing players ahead of the next World Cup?

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In his book “Sri Lanka’s Easter Sunday Massacre: Lessons for the International Community,” terrorism expert Dr. Rohan Gunaratna emphasizes the importance of de-radicalizing Islamic ideology to effectively combat Islamic terrorism. He identifies Wahhabism or Salafism as the root of Islamic terrorism, rapidly spreading worldwide through modern communication tools. Gunaratna warns that merely arresting perpetrators after attacks is insufficient; the focus should be on preventing radicalization in the first place.

The Easter Sunday bombings in April 2019, which claimed over 200 lives, were fuelled by extremist ideologies inspired by events in the Middle East and Islamic extremists in South India. Sri Lanka’s lack of a legal and policy framework to curb radicalization and promote moderation, tolerance, and coexistence contributes to the potential recurrence of such attacks.

To succeed in the de-radicalization process, Sri Lanka must develop a unified approach by avoiding confrontational politics and forging a consensus on national security. Combating religious exclusivism, propagated by Wahhabi and Salafist institutions, is crucial, and both state and community action is required. Gunaratna highlights that the ideology of hatred against other faiths must be dismantled to prevent future attacks.

Rohan Gunaratna says that Islamic terrorism is but an outgrowth of Wahhabism or Salafism, which is spreading rapidly across the world using modern tools of communication.

The Yahapalnaya regime (2015-2019) is criticized for systematically dismantling security and intelligence platforms, leading to vulnerabilities in national security. Political pressure from human rights groups hindered intelligence efforts, contributing to the Easter attacks. The lack of awareness of the security dimension among political leaders and the need for inter-agency collaboration is stressed.

Gunaratna opposes the recent decision by the Sri Lankan government to de-list five of the 11 banned Islamic organizations after lobbying from radical clerics and politicians. He argues that compromising national security for political gain undermines national unity and social cohesion, leading to ethnic and religious hatred and violence. Instead, leaders should integrate ethnic and religious leaders into mainstream national politics to promote harmony and coexistence.

Gunaratna recommends several measures, including screening and certifying clerics, blacklisting hate speakers, developing a comprehensive curriculum for clerics, and regular review of their teachings. He also advocates for a National Security Council, a National Security Act, and a Foreign Interference Act to safeguard the nation from external threats and divisive ideologies.

In conclusion, de-radicalizing Islamic ideology and strengthening intelligence and security capabilities are essential strategies to address the root causes of Islamic terrorism in Sri Lanka. Building social and religious harmony, fostering inter-agency collaboration, and political consensus on national security issues are crucial steps to prevent future attacks and ensure the country’s stability.

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