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Cabraal says debt restructuring underway without IMF assistance
By Sanath Nanayakkare
Sri Lanka will not seek IMF assistance to restructure its debt, Central Bank Governor Ajith Nivard Cabraal has said, adding that debt restructuring is an ongoing process which the country has already undertaken.
“There are many instances where people ask us whether Sri Lanka needs to restructure its debt repayments. And I tell them, we have to manage our debt without using the word restructuring in a frivolous manner, the Central Bank Governor said on Saturday.
The Central Bank Governor made these comments addressing a virtual meeting hosted by the Centre for Banking Studies to discuss the implications of the National Budget 2022 which was presented in parliament on 12 Nov.
“Every debt situation needs restructuring on an ongoing basis. For example, if you have one debt where the interest rate is 7-8% and if you can find another source from which you can borrow at a cheaper rate, then you would be technically restructuring your debt. This is something that people sometimes don’t realize. In the same manner, you could have a debt which is of a shorter duration and if you’re able to increase the period of the debt and also ensure that your repayments are staggered even more, that is a way of restructuring your debt. If you can change the mix of your debt, from foreign currency, to local currency or between foreign currencies, that again is a type of restructuring of your debt portfolio which is to your advantage. That process is underway” he said.
“Sri Lanka has also understood that its reliance on International Sovereign Bonds (ISB) has been quite sharp and in the last few years, there has been a fairly extensive reliance on ISBs. Now this has to be re-shifted in some way so that we would have a greater control, within a long period of time. That’s why the government, very rightly, with the Central Bank is now examining the option of having government to government loan situations, central bank to central bank swaps, the examining of the possibilities of securitising remittances as well as other inflows. These are all new options the government is considering, together with the raising of non-debt creating inflows, monetisation of certain assets, increasing the value of exports and remittances. These are all natural options the Central Bank and the government are examining to ensure the debt profile is a lot more sustainable. Several of these ideas have already been put into action. We have spoken about it in the Central Bank’s Road Map as well. In the next few months, you will see a large number of these being implemented to position Sri Lanka on a debt sustainable path,” he said.
“When the proposals of the National Budget 2022 and the contents of the Central Bank’s Road Map are diligently implemented, Sri Lanka’s macro-fundamentals would look much better than now, and the country would be well on course for a 6% plus growth with stability.
“We are looking at 5% growth this year, of course on a much lower base of last year’s negative growth of 3.6%. But given the circumstances, that’s a reasonable number for this year. If the Year 2022 turns out to be a good year and Sri Lanka Tourism inflows also recover to about one-fourth of what it used to be prior to 2019, I think Sri Lanka would record an economic growth of more than 6% in 2022,” he said.
“The Central Bank will ensure that financial system stability is maintained, while growth is achieved in order to support the government to attract investments. Already there are several areas of investments planned, particularly in the Port City. The Port City Commission Bill has already been passed which gives massive opportunities for those who are looking to do business there. A study by a leading accounting firm has said that the Port City project would add 13.8 billion U.S. dollars to the country’s economy. That is a substantial number. If we can get that going, along with the organic growth of our own economy, we will have extremely useful economic indicators that would show the true potential of our economy whereby the private sector should be able to very keenly deliver on the promise of its full capacity”.
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
