An Echelon Media Company
Tuesday December 5th, 2023

Chinese query Sri Lanka allegations of corruption in contracts

COLOMBO, Nov 2 (Reuters) – China has criticised Sri Lankan allegations of bribery in the awarding of contracts to Chinese firms worth billions of dollars, saying it should have a greater sense of gratitude for development assistance.

The comments to reporters were the strongest since President Maithripala Sirisena took office last year, vowing to investigate corruption allegations in projects such as the $1.4 billion Colombo port and the real estate development deal, as well as loans taken out by Colombo under the previous administration.

Wang Yingqi, the commercial counsellor at the Chinese embassy in Colombo, said on Tuesday that the Sri Lankan government had not given any evidence to support the allegations of corruption.

"We’re still waiting for the results of the investigation into the allegations. But so far we have not got any idea," he told reporters.

Chinese Ambassador Yi Xianliang said none of the allegations had been proved.

"We have the documents, we have the contracts. Those contracts were checked by the attorney-general, cabinet, parliament," Yi said. "…Sri Lankan people and government should have some gratitude for the things given."

Colombo took loans at a 5.8 percent interest rate last year from Europe, against the 2 percent rate that Chinese loans came with, to fund the port projects, Yi said.

"And yet they say Europe is cheaper. Is this fair?" Yi asked.

Sirisena’s government, faced with a debt and balance of payments crisis, last month asked the Chinese to resume work on the Colombo port, the country’s largest foreign direct investment project.

China has stepped up its infrastructure push across South Asia, making inroads in a region that India has considered its zone of influence.

Under Prime Minister Narendra Modi, India is trying to push back against Chinese involvement in projects, offering financial and technical assistance of its own.

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Sri Lanka finding ways to clear 1.1mn pending cases: Justice Minister

ECONOMYNEXT – Sri Lanka is taking a series of steps to speed up 1.1 million pending court cases and encourage alternative dispute solving mechanisms, Justice Minister Wijedasa Rajapakshe said.

“The delay in court cases is a serious problem,” Minister Rajapakshe told a briefing at the President’s Media Centre.

“We have already taken several steps to expedite cases.”

There were 5,680 cases in Supreme Court, 4,054 in the Court of Appeal, 6,168 in the High Court of Civil Appeal, 8,363 in the Commercial High Court, 28,000 in the High Court, 254,000 in District Courts and 791,000 in Magistrates Courts.

In 2015, only 49 percent of complaints to mediation boards were resolved. Following reforms, the ratio has been increased to 70 percent.

The value of disputes going to mediation board has been raised to one million rupees from 500,000 rupees.

To solve land problems in the post-war period, special mediation boards on property was set up in the North and the East.

Mediation boards on property will be set up in another 16 districts.

Commercial High Courts were increased to four from three.

Another Commercial High Court will be set up in the future. The consideration of cases that can go to a High Court was raised from 4 million rupees to 10 million rupees.

A commercial dispute resolution law will be introduced next January.

A small claims court has been established.

Case involving disputes below 2 million rupees can be directed to small claims court.

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Sri Lanka stocks close up as some investor interest returns

ECONOMYNEXT – The Colombo Stock Exchange closed up on Monday, CSE data showed.

The All Share Price Index was up 0.22 percent, or 23.33 points, at 10,743.59.

The S&P SL20 index was up 0.68 percent, or 20.60 points, at 3,067.73.

Turnover was at 708 million. The banks sector contributed 189 million, while the food, beverage and tobacco sector contributed 176 million of this.

Sri Lanka’s stock market has seen some investor interest return after last week’s news that the country had managed an agreement on a debt restructuring deal with an official creditor committee, and foreign funds for some development projects resumed.

Top positive contributors to the ASPI in the day were Sampath Bank Plc (up at 71.50), LOLC Holdings Plc (up at 379.00), and Commercial Bank of Ceylon Plc, (up at 90.90).

There was a net foreign outflow of 52 million.

Citrus Leisure Plc, which announced that its banquet hall and revolving restaurant at the Lotus Tower would launch on or around Dec 9, saw its share price rise to 6.20 rupees. (Colombo/Dec4/2023).

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Sri Lanka rupee closes broadly steady at 328.10/30 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 328.10/30 to the US dollar on Monday, from 328.00/10 on Friday, dealers said.

Bond yields were stable.

A bond maturing on 01.06.2025 closed at 13.70/14.00 percent from 13.70/95 percent.

A bond maturing on 01.08.2026 closed at 13.90/14.10 percent from 13.90/14.05 percent.

A bond maturing on 15.01.2027 closed at 14.00/14.10 percent from 14.05/10 percent.

A bond maturing on 01.07.2028 closed at 14.20/35 percent from 14.15/25 percent.

A bond maturing on 15.05.2030 closed at 14.25/45 percent, from 14.20/45 percent.

A bond maturing on 01.07.2032 closed at 14.05/40 percent, from 14.00/45 percent. (Colombo/Dec4/2023)

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