An Echelon Media Company
Tuesday June 25th, 2024

Sri Lanka court rejects police request to prevent protest amid massive agitation plan

ECONOMYNEXT – A Sri Lankan court on Thursday denied a request by the police to prevent protesters gathering near President Gotabaya Rajapaksa’s official residence in Colombo, ahead of a major anti-government protest planned for Saturday demanding the president to resign.

The Colombo Fort Magistrate rejected the request by the police.

“The police had requested the court order because they received intelligence reports that the people will be gathering near the Fort police area and there may be some violence,” police Spokesman Nihal Thalduwa told Economy Next.

Fort police station is located within 500 meter perimeter of the president’s official residence.

Thalduwa said he was unaware why the court denied the request.

However, he said there is a law already in place for the police to handle any kind of protest and if any violence takes place the police will act according to the existing law.

Thousands of Sri Lankans have planned a mass protest on Saturday (09) in the commercial capital of Colombo demanding the resignation of President Gotabaya Rajapaksa amid a worsening economic crisis.

Opposition parties say people are frustrated over the government’s inaction to ensure supply of essentials including fuel, cooking gas, and kerosene. (Colombo/July 07/2022)

Comments (1)

Your email address will not be published. Required fields are marked *

  1. David Jansz says:

    The world is experiencing a spate of dictatorships arising all over, as a result of the weakening of Western leadership. In the US, Biden is perhaps the weakest President for decades, while in the UK, Boris J has had to leave PM’s position in shame. France is now disabled, while Germany no longer has the formidable Merkel.
    Sri Lanka could soon become another North Korea unless the highly literate Sri Lankans take decisive action to get rid of the budding dictatorship of the jarapaksas.

View all comments (1)

Comments (1)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. David Jansz says:

    The world is experiencing a spate of dictatorships arising all over, as a result of the weakening of Western leadership. In the US, Biden is perhaps the weakest President for decades, while in the UK, Boris J has had to leave PM’s position in shame. France is now disabled, while Germany no longer has the formidable Merkel.
    Sri Lanka could soon become another North Korea unless the highly literate Sri Lankans take decisive action to get rid of the budding dictatorship of the jarapaksas.

Sri Lanka to sign Paris Club debt deals as fresh ISB talks to also start

ECONOMYNEXT – Sri Lanka will sign agreements on restructured debt with Paris Club creditors Wednesday, Cabinet spokesman Minister Bandula Gunawardana said as sources said talks with private creditors are also due to start later in the week.

The relevant senior officials and State Minister Shehan Semasinghe has already left the country to sign the agreements, Minister Gunawardana said.

Sri Lanka has held detailed negotiations with bilateral creditors ever since a sovereign default in 2022 and President Ranil Wickremesinghe has personally met leaders of friendly countries to expedite the restructuring, he said.

The finalizing of the restructure was a ‘great victory’ for Sri Lanka he said.

Details will be revealed to parliament by President Wickremesinghe and an address to the nation on Wednesday he said.

Discussion with private bondholders are also taking place separately, he said.

Face to face talks with bond holders are likely to start Thursday, sources said.

Investors in a steering committee representing key bondholders have halted trading and are in a ‘restricted’ period Bloomberg Newswires reported.

Sri Lanka is attempting to restructure 12.5 billion dollars of sovereign bonds and about 1.7 billion dollars of past due interest following the declaration of an external default in 2022.

Private investors are seeking some so-called macro-linked bonds whose final haircut is linked to dollar GDP as well as some standard or ‘plain vanilla’ bonds with an upfront haircut.

The style of bonds have not been used in sovereign restructurings before. In the latest round of talks more plain vanilla bonds may be discussed, sources aware of the thinking of some bond investors said.

The ISB holders have proposed a 28 percent haircut and a 1.8 percent consent fee. The macro-linked bonds would have principle re-stated up to 92 percent of the original depending on the evolution of gross domestic product.

Sri Lanka is restructuring debt using an IMF debt sustainability model applied to middle income countries with market access as opposed to debt sustainability model used in countries like Ghana applicable to low income countries requiring deeper haircuts on both domestic and foreign debt.

Hair cuts may also depend on the maturity of bonds and the coupon interest.

Ghana has higher levels of commercial debt having started to access capital markets from around 2007.

Ghana also has a bad central bank like Sri Lanka and has gone to the International Monetary Fund 18 times.

The country is also operating flexible inflation targeting (inflation targeting without a clean float), which critics say is the latest spurious monetary regime peddled to hapless unstable countries without a doctrinal foundation in sound money.

Having done broad domestic debt restructuring as well as continued currency volatility both interest rates and inflation remains above 20 percent.

Ghana’s central bank has a worse monetary anchor (8 percent inflation plus 2 percent) compared to 5 percent plus two in Sri Lanka and runs into currency trouble despite being an oil producer like Iran, Venezuela and neighboring Nigeria.

Nigeria has an inflation target of 6-9 percent but ends up with around 20 plus inflation and currency trouble.

Sri Lanka has undershot its inflation target since reaching monetary stability in September 2022 and has appreciated the currency, amid deflationary policy giving a strong foundation for economic activity to resume. (Colombo/June26/2024)

Continue Reading

Sri Lanka to seek investors for 200MW BOOT power plant

EONOMYNEXT – Sri Lanka’s cabinet has given approval to seek investors for a 200 MegaWatt independent power plant on a build-own-operate-and-transfer (BOOT) basis, a government statement said.

The internal combustion power plant will be capable of running on natural gas and is part of the Long-Term Generation Expansion of state-run Ceylon Electricity Board.

The investor will get as 20-year power purchase agreement.

Land next to the ‘Sobhadanavi’ combined cycle plant will be made available for the developer.

According to the generation plan, the 200MW IC plant is expected to come on stream by 2026.

In 2026, a 115 MW gas turbine, a CEB owned diesel plants of 68 MW and 72 MW are due to be retired. (Colombo/June25/2026)

Continue Reading

Sri Lanka rupee closes steady at 305.25/35 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed fairly flat at 305.25/35 to the US dollar on Tuesday, down from 305.20/30 to the US dollar on Monday, dealers said, while bond yields up.

A bond maturing on 01.06.2026 closed at 10.75/11.05 percent.

A bond maturing on 15.12.2026 closed at 10.65/11.05 percent, up from 10.45/85 percent.

A bond maturing on 15.10.2027 closed at 10.65/11.10 percent.

A bond maturing on 15.03.2028 closed at 11.20/11.50 percent.

A bond maturing on 15.09.2029 closed at 12.10/15 percent, up from 12.05/17 percent.

A bond maturing on 01.12.2031 closed at 12.10/20 percent, up from 12.08/15 percent.
(Colombo/Jun25/2024)

Continue Reading