News
Cabraal says due to sin of floating rupee country has to pay extra Rs 1,155 bn in settling foreign debt
By Saman Indrajith
Sri Lanka would have to pay an additional Rs. 1,155 billion as its loan settlements in the years from 2020 to 2024 due to the floating of the rupee value, Parliament was told yesterday.
State Minister for Money and Capital Market and State Enterprise Reforms, Ajith Nivard Cabraal said that while he was the Governor of the Central Bank from 2012 to 2014 the highest priority had been given to maintaining the rupee at a stable rate. “Some economic experts came up with the idea of free floating. Later, it was implemented and we got floating currency value. Now, we see the results.”
Minister Cabraal said so responding to a question by SJB Colombo District MP S. M. Marikkar, who asked the Minister to inform the House of the amounts of money which the government had to pay back as local and foreign debts between 2020 to 2024, separately in respect of each year.
The Minister said that Sri Lanka had to settle foreign debt worth USD 4,095 million (Rs 760 billion) in 2020, USD 3,910 million (Rs 726 billions) in 2021, USD 4,481 million (Rs 832 billion) in 2022, USD 4,242 million (Rs 787 billion) in 2023 and USD 4,404 million (Rs 817 billion) in 2024.
Domestic debt that had to be settled in 2020 amounted Rs. 1,230 billion, the minister said, adding that the amount was Rs 1,557 billion for 2021. The local debt to be settled in 2022 was Rs 1,128 billion; Rs 1,120 billion for 2023 and was Rs 899 billion for 2024.
MP Marikkar asked whether Sri Lanka would obtain more foreign loans to settle its debt. “The amount of debt burden is increasing and the value of rupee is depreciating. Today, the value of a US dollar is 196 rupees. What is the government planning to do about this?”
Minister Cabraal said that the amounts to be settled as foreign debt would have had a different rupee value if his successors as the Governors of the Central Bank had taken action to maintain a fixed rupee value the way he had done. “We maintained a fixed rupee value at Rs 131 against the US dollar. Later, it was changed and let the rupee value float. No, we see the results. The amount of foreign debt to be settled in 2021 in rupees is 726 billion. It would have been Rs 536 billion instead had the rupee value been fixed. The amount of foreign debt to be settled in 2022 is Rs. 832 billion and it would have been Rs 587 billion instead. Similarly, the amount of foreign debt for the years 2023 and 2024 are Rs 787 billion and Rs 817 billion respectively. It would have been Rs 555 billion and Rs 577 billion instead.”
“The value of the debt has arisen since the exchange rate of the rupee was not maintained,” Minister Cabraal said, noting that since the new government came to power efforts had been mae to maintain the rupee value. “There have been occasions where we faced pressure but during the last several days of the year, the rupee value increased against some currencies. That is a positive sign.”
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
