News
SL expects IMF bailout by end of next month
By Sanath Nanayakkare
A staff-level agreement with the International Monetary Fund (IMF) and a programme for a bailout package for Sri Lanka would be finalised by the end of July 2022, Prime Minister Ranil Wickramasinghe told Parliament yesterday.
“The only safe option before us now is to hold talks with the IMF and, in fact, it’s our only option. We must take this path,” he said, delivering a special statement in Parliament.
From November 2019, Sri Lanka maintained a consistent hard line against seeking assistance from the IMF, causing historical damage to its economy.
Later, following a request by Sri Lanka for the IMF to intervene, the first in-person talks with the global lender for a bailout package commenced in Colombo on 20 June, they will continue over 10 days.
According to the Prime Minister, Sri Lanka has concluded the initial discussions with the IMF delegation and exchanged ideas on various sectors such as public finance, debt sustainability, stability of the banking sector, social security network, etc.
Referring to debt restructuring and honouring sovereign debt repayments consequent to a preemptive default by the country, Wickremesinghe said the framework for this will also be finalised by the end of July following consultations with financial and legal advisory firms Lazard Ltd. and Clifford Chance LLP.
“Representatives of Lazard and Clifford Chance are now in Sri Lanka to assist us in our debt restructuring. The formulation of this framework which is a key requirement of the IMF is now underway,” he said.
Sri Lanka hired the two firms in May 2022 to serve as financial and legal advisors on debt restructuring as the country sought a bailout from the IMF.
“Three high-ranking officials of the Indian government are scheduled to arrive in Sri Lanka today for discussions regarding the loans offered to the country in the future. We have sought more loans from India, but India cannot continue to lend us. We have to formulate a system to repay our loans,” he said.
“A team of representatives from the U.S. Department of the Treasury is also expected to arrive in Sri Lanka on Monday. We arranged for the arrival of these three teams in Sri Lanka so that we can conduct parallel discussions with them in an effective manner. It will intensify our efforts in expediting the recovery programme,” he said.
Referring to ongoing fuel crisis, the PM said “No country or organisation in the world is willing to provide fuel to Sri Lanka due to the country risk as the Ceylon Petroleum Corporation (CPC) has an outstanding debt of USD 700 million. Some suppliers are even reluctant to provide fuel for cash.”
“Sri Lanka is currently in need of USD 550 million to meet its monthly fuel needs. In the face of foreign exchange crisis, we are experiencing difficulties in securing required funds for this purpose. So, we will be importing maximum possible fuel stocks based on our dollar income. Resolving the fuel shortages, therefore, will take more time. I urge everyone to sparingly use fuel and reduce consumption until our reserves are at healthy levels.”
“The government has taken steps to import 100,000 MT of LP gas utilising a World Bank loan of USD 70 million and USD 20 million of the country’s own reserves. We will be able to eliminate the gas shortage once we have received these LPG stocks,” he said.
The PM also mentioned about the government’s plans to organise a financial aid conference led by India, Japan and China – the main lending countries of Sri Lanka – to seek their support at this critical hour.
“Through this conference, we hope to arrive at a general consensus on lending and repayment processes because these countries have different methodologies in this regard. If we receive the IMF seal of approval, the world will once again begin to trust Sri Lanka. An approval from the IMF will help us secure low-interest loans from other countries as well. We are currently holding discussions with the World Bank, Asian Development Bank, the United States, other friendly nations and several heads of state to secure interim short-term loans until we receive funding from the IMF. We will be able to lay the foundation to ensure economic stability following the successful completion of these undertakings. However, these by no means will be the end of our recovery effort. In fact, it will be the beginning of our journey which would firmly require us to build a more export-oriented economy with fiscal discipline in place,” he said.
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
