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Lanka debt talks with India, China, Japan helped by investment projects: President
ECONOMYNEXT –Sri Lanka has been moving forward in bilateral debt negotiations by talking to individual creditors despite a clearly defined process for dealing with Paris Club and other creditors, President Ranil Wickremesinghe had said last week.
Sri Lanka was following a ‘debtor led’ strategy by reforming the economy and also aiming at a ‘highly efficient green economy’, which was going to increase financing needs, Wickremesinghe told a financing summit for a New Global Financing Pact in Paris.
“What else helped us was that Sri Lanka had ongoing negotiations with Japan, India and China and separately regarding further trade integration and also regarding some of the development programs for the future,” President Wickremesinghe said. “This assisted our process.”
Sri Lanka was supported by the International Monetary Fund and also India who gave about four billion US dollars in 2022 he said when all other funding dried up.
Sri Lanka’s currency crisis intensified in 2022 after central bank open market operations depleted forex reserves and float (full suspension of convertibility) of the currency failed due to a surrender rule leading to the collapse of the rupee from 200 to 360 to the US dollar.
India had supported Sri Lanka with about four billion US dollars in the worst time, Wickremesinghe said.
Sri Lanka went through a period of ‘reserve graduation’ with the World Bank and Asian Development Bank making the country eligible for concessionary funding.
After a staff level agreement was signed with the IMF there was no clearly defined path to follow in bilateral debt restructuring with some lenders outside the Paris Club, the president said. Ninety percent of the menu options in the IMF program was agreed, he added.
The lack of a clearly defined path was a problem but a ‘common framework’ for middle income countries may also not help, because such efforts tended to move at the pace of the slowest creditor, he said.Under an ‘ad hoc’ arrangement, India and several countries had come to work with the Paris Club and China was an observer.
“We are able to work with the most committed creditors, raising the general quality and efficiency of the process,” Wickremsinghe said. “We are still frustrated by the lack of progress.”
Wickremesinghe said a new debt negotiation framework was needed since geopolitical tensions played a part, which cannot be solved by the debtor countries.
“The mistrust between US and China and the growing tensions has to be address by you all, not merely Sri Lanka and the country concerned,” Wickremsinghe said. “If you do not resolve it, Asia and Africa we will get caught into another situation not of our making. Restructuring is needed. But it has to move fast, otherwise LIC or MIC, the countries will not have much hope.”
A number of countries with highly unstable, depreciating, soft-pegged (flexible exchange rates) who had engaged in inflationary open market operations and covid monetary re-financed funding, are now in the brink of default.
Many of the countries had loaded up of sovereign debt as bond buyers went on a yield seeking spree as reserve currency quantitative easing (money printing) kept interest rates artificially low and China also busted some of its reserves on the Belt and Road project.
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
