Debt Restructuring

Sri Lanka hopes to resume road projects after debt restructuring, IMF review

Fast in a straight line, the P400E didn’t do too badly on these mount-roads. But, a sportscar it is not

Monday September 18, 2023 7:11 pm

ECONOMYNEXT – Sri Lanka hopes to resume suspended road infrastructure projects soon and complete them faster with the expectation that foreign funding and grants will start after finalizing external debt restructuring and ongoing first review of the IMF programme, State Highway Minister Siripala Gamlath said.

The unprecedented economic crisis has forced the Sri Lanka government to suspend most of its infrastructure projects due to lack of funding.

All bilateral lenders stopped their funding immediately after the island nation declared bankruptcy through defaulting sovereign debts in April last year. Since then, Sri Lanka has not been repaying any foreign debts.

Gamlath hopes the suspended road projects could be resumed with fund allocations through the upcoming 2024 budget.

“Except one or two, all others have stopped (road projects). They have stopped because they don’t repay loans at the moment,” he told the reporters in Colombo on Monday (18).

“I believe that we can resume the implementation of the projects once we successfully finalize the IMF review discussions.”

An International Monetary Fund (IMF) delegation is in Sri Lanka to review President Ranil Wickremesinghe government’s performance against the given targets in a $3 billion IMF loan approved mid this year.

The IMF has already disbursed $330 million already. The first review is done before the IMF board approval for the second tranche.

Sri Lanka roads are not in dilapidated conditions.

However, Gamlath said maintenance of the roads has become a concern due to lack of money.

He said the government has been carrying out some projects at a slow pace while a few projects are continuing after authorities negotiated to pay the money to contractors in rupees instead of dollars as agreed earlier.

“When we finalize the debt restructuring, we should be able to start the projects that are now halted partially,” he said. (Colombo/September 18/2023)

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Human Rights

Sri Lanka’s Inland revenue to give tax concessions to institutions for disabled children

Tuesday September 26, 2023 3:12 pm

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved a proposal to amend the Inland Revenue Act to allow tax concessions to registered institutions collaborating with the government to provide health and education services to disabled children.

The Inland Revenue Act No. 24 of 2017 is to be amended to give tax relief to legitimate charity establishments collaborating with the government health services/education system in providing health facilities to children with disabilities, and prioritising the wellbeing of differently abled children.

Government data shows around 4 percent of the island nation’s 22 million population has some disability. The government has increased allocations for the disabled to empower them.

A new Disability Bill, aimed at safeguarding the rights of the disabled community, will be presented to Parliament this year.

The bill also aims to reduce disabled people’s dependence on government support.

“The comprehensive legislation seeks to ensure the protection of the rights of disabled individuals and their empowerment within society. This includes providing access, education and technology to all members of the disabled community,” State Social Empowerment Minister Anupa Pasqual said. (Colombo/Sep26/2023)

Economy

Future SJB govt to “refine” Sri Lanka’s agreement with IMF: Harsha de Silva

Tuesday September 26, 2023 2:52 pm

ECONOMYNEXT – A future government led by the incumbent main opposition party the Samagi Jana Balawegaya (SJB) will “refine” Sri Lanka’s agreement with the International Monetary Fund (IMF), SJB legislator Harsha de Silva said.

The MP tweeted Monday September 26 morning that a closed-door discussion between the SJB and an IMF team that’s currently in Sri Lanka to review the ongoing programme was productive and had focused on governance, transparency and equity in the reform process.

“It was a good discussion. We were quite frank,” said de Silva in a clip he shared of him speaking to the privately owned NewsFirst network.

“Yes, we said we agree as the SJB that we need to work with the IMF, and that we accept that large-scale economic reform will have to take place. That was the baseline.

“However, the leader of the opposition said that, under our government, certain modifications will have to happen,” said de Silva.

The MP, who also chairs the parliament’s Committee on Public Finance (COPF), said this is because the people “obviously see that there is inequity in the implementation of this agreement”.

News footage of the SJB’s latest round of talks with the IMF team showed that SJB and Opposition Leader Sajith Premadasa along with de Silva and a handful of his colleagues in the party were joined by former Sri Lanka Podujana Peramuna (SLPP) MPs who were vocal supporters of former President Gotabaya Rajapaksa. MPs Nalaka Godahewa and G L Peiris also seen joining a group photo with the IMF and the SJB lawmakers.

The SJB was among the first to demand that the then government of ex-President Rajapaksa approach the IMF before Sri Lanka’s currency crashed in 2022. Over the months since incumbent President Ranil Wickremesinghe’s administration embarked on an IMF-prescribed reform agenda, the opposition party has adopted a more critical position on the international lender.

In May, SJB MP Kabir Hashim speaking at a public event in Monaragala alluded to a unique vision his party possesses with regard to macroeconomic development that doesn’t necessarily include the IMF.

Sri Lanka’s SJB no longer enamoured of IMF, promises new govt in three moons

The SJB’s position with regard to the IMF programme, Sri Lanka’s 17th so far, has been less than consistent. The party, which was among the first to call for a deal with the iInternational lender at the onset of the island nation’s worst currency crisis in decades, abstained from voting for the agreement in a vote taken in parliament in April.

While the SJB hasn’t quite had a drastic departure from its original pro-IMF stance, the party has been increasingly vocal of late about the socioeconomic impact of the deal.

SJB leader Premadasa earlier this year reportedly said a future SJB government would not be obligated to honour deals made by the incumbent government headed by President Ranil Wickremesinghe. MP de Silva explained later that what his party leader had meant was that Sri Lanka must negotiate terms favourable to the country when dealing with the IMF. (Colombo/Sep26/2023)

Economy

Sri Lanka cabinet okays appropriation bill for 2024 budget

Tuesday September 26, 2023 1:22 pm

ECONOMYNEXT – Sri Lanka’s cabinet of ministers had approved a draft Appropriation Act for 2024, the state information office said.

The Finance Minister’s proposal to gazette the bill and table it in parliament was approved by the cabinet.

Presenting the appropriation bill is the first stage of presenting a budget for 2024,

The appropriation bills set outs the expenditure plans for each ministry.

The budget proposals, made in November is called the second reading of the Appropriation Act. (Colombo/Sept24/2023)