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Thursday March 23rd, 2023

Sri Lanka opposition leader says future govt under him not obliged to back IMF, other deals

ECONOMYNEXT – A future Sri Lankan government under the opposition Samagi Jana Balawegaya (SJB) is not obliged to support deals with the International Monetary Fund or any other international funding agency as the current government does not have mandate to sign such agreement.

President Ranil Wickremesinghe’s government is in discussion to obtain $2.9 billion IMF loan once the sovereign debt defaulted country agrees with all its bilateral creditors. Wickremesinghe government has already implemented many IMF demands that required to be fulfilled before the global lender’s approval.

The Opposition and SJB leader Sajith Premadasa speaking at a Local Government election campaign in Western provincial district of Kalutara said the current government has no mandate from the people.

Wickremesinghe was elected by the parliament in July last year backed by ruling Sri Lanka Podujana Peramuna, a party which lost its popularity due to wrong economic policies which led to the country to an unprecedented economic crisis.

Wickremesinghe lost the 2020 parliamentary polls, but entered the parliament through the only national list position got by his center-right United National Party (UNP).

Premadasa said his father, the then president Ranasinghe Premadasa (1988-1993), also went for IMF loans, but he never slashed any relief measures given to the public.

“You must deal with the IMF not by bowing to them (IMF). If you stand straight, have a backbone like a lion and deal with the IMF then you can get facilities that are more advantageous for you,” Junior Premadasa said in the election campaign meeting.

“But now, the SLPP and the UNP are jointly going to the IMF, begging and saying, oh Lord IMF we will do anything you say.”

“We tell one thing to the IMF and the international financial institutions. A SJB government is not obligated to support any deal that a government like this with a president without a mandate.”

Analysts have predicted holding the local government polls could derail Wickremesinghe’s reform agenda as the main theme of the election would be economy and taxes. The country has seen rising protest over personal income tax hikes since last week.

Sajith Premadasa was initially invited to accept Prime Minister post in May last year when former prime minister Mahinda Rajapaksa was forced to resign after public protests following his supporters attacked unarmed protesters in capital Colombo.

However, Premadasa did not accepted the offer. But after Wickremesinghe was appointed as the prime minister, he expressed his willingness to accept the post.

Wickremesinghe was elected as the president later in line with the country’s constitution.

“You can’t blame the President right now, because the first option was given to the leader of the opposition to take over the country,” State Finance Minister Shehan Semasinghe told in an interview to EconomyNext on January 26 when he was asked about opposition’s criticism.

“Had he become the Prime Minister, this (the economy) would have been the same state.” (Colombo/Jan30/2023)

Comments (6)

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  1. sam says:

    What an irresponsible statement by a junior politician. “Negotiate like a lion with the IMF” ? – Podi Lamaya must me living in the Metaverse version of SL.

    1. Manju says:

      Let junior Premadasa give this as a declaration to see the truth when he comes to power

    2. seim says:

      If he become president it could be end of Sri Lankan people..

  2. dinesh says:

    Please include your ideas in the Election manifesto for a General Election. Further this must be publicized as Public policy statement in your new Government

  3. K.wijesuriya says:

    Yes , In this way Premature is correct. Be a leader like this. We should not accept all the conditions that is harmful to the country. Sri Lankan government and officers have no courage to do it.

  4. Alpha says:

    Despite the serious economic crisis faced by the country and its citizens, he is still playing politics and wishes to undermine whatever economic progress is being made. People are now aware of the gimmicks of such politicians all of whom should be taught a lesson in the forthcoming elections.

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Comments (6)

Cancel reply

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

  1. sam says:

    What an irresponsible statement by a junior politician. “Negotiate like a lion with the IMF” ? – Podi Lamaya must me living in the Metaverse version of SL.

    1. Manju says:

      Let junior Premadasa give this as a declaration to see the truth when he comes to power

    2. seim says:

      If he become president it could be end of Sri Lankan people..

  2. dinesh says:

    Please include your ideas in the Election manifesto for a General Election. Further this must be publicized as Public policy statement in your new Government

  3. K.wijesuriya says:

    Yes , In this way Premature is correct. Be a leader like this. We should not accept all the conditions that is harmful to the country. Sri Lankan government and officers have no courage to do it.

  4. Alpha says:

    Despite the serious economic crisis faced by the country and its citizens, he is still playing politics and wishes to undermine whatever economic progress is being made. People are now aware of the gimmicks of such politicians all of whom should be taught a lesson in the forthcoming elections.

Sri Lanka establishes committee to investigate aircraft incidents

An aircraft lands at the Jaffna International Airport, which was opened in October 2019 and promises to push the tourism frontiers in Jaffna.

ECONOMYNEXT: Sri Lanka’s has established an expert committee under the state-run Civil Aviation Authority to investigate aircraft accidents and to implement precautionary methods in the Sri Lankan airspace, an Official said.

“Even if it is only one flight, there is a chance an accident may occur,” Civil Aviation Authority of Sri Lanka, Director General, P. A. Jayakantha said.

“This particular committee is there to investigate aircraft accidents and act as a mechanism to take over if something goes wrong”.

Sri Lanka has encountered around 2,700 minor aircraft accidents and incidents mostly on the ground in the 19 years through 2021, the CAA annual reports showed.

The new committee will analyze the past accidents and take precautionary measures while also conducting investigations and provide independent reports in the future, Jayakantha said.

The team is provided with required training and qualifications by the CAA along with an International organization, free of charge.

“Internationally also it is a requirement to have a team to investigate the aircraft accidents,” Jayakantha added.

“For a long time we have not fulfilled this requirement and that is why we established this team with the cabinet approval. Moreover, recently, Sri Lanka’s two aircrafts, one training aircraft and a commercial aircraft met an accident”

The committee will be on active duty, until the Accident Investigation Act is passed and a proper Aircraft Accident and Incident Investigation Bureau is established. (Colombo/ Mar23/2023)

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Sri Lanka bond yields steady, Rupee 319/325 at close

ECONOMYNEXT – Sri Lanka’s treasury bond yields closed steady on Thursday while rupee closed weaker, dealers said.

A 01.07.2025 bond closed at 30.60/31.00 percent on Tuesday, down from 30.25/75 percent on Wednesday.

A 15.09.2027 bond closed at 27.80/28.10 percent, steady from 27.90/28.00 percent from Wednesday.

Sri Lanka rupee closed at 319/325 against the US dollar depreciating from 318/320 from a day earlier. (Colombo/ March23/2023)

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Sri Lanka shares dive to two-week low on local debt restructuring fears

ECONOMYNEXT – The Sri Lanka market fell for a fourth session to a two-week low on Thursday, led by financials, as worries over domestic debt restructuring continued after the IMF loan was approved earlier this week resulting in investors adopting a wait-and-see approach until further clarity was provided, analysts said.

The main All Share Price Index (ASPI) closed down 1.38 percent or 131.07 points to 9,395.98, lowest since March 02.

Analysts said, majority of the banks have been on slower investment trends on fears of domestic debt restructuring after the IMF approval and waiting for more clarity on the local debt restructuring.

“The market is on muted sentiments despite the IMF loan being approved and is going through a period of consolidation,” Ranjan Ranatunga of First Capital Holdings said.

The market saw a net foreign outflow of 298 million rupees and the total offshore inflows recorded so far in 2023 to 3.3 billion rupees.

The most liquid index, S&P SL20, closed 1.64 percent, or 45.33 points, down at 2,722.94.

The market saw a turnover of 3.4 billion rupees on Thursday, above this year’s daily average of 1.8 billion rupees.

This is the highest turnover generated since March 08, which is when the market was driven off of positive sentiments from International Monetary Fund deal hope after Chinese assurances.

Top contributors to revenue was Agalawatte Plantations, on off board transactions of a stake change, contributing revenue of 1.6 billion rupees, Ranatunga said.

Top contributors to revenue industry wise was Food and Beverage and Telecommunications.

Sri Lanka Telecom has been seeing positive uptrends as the Secretary to the Treasury has informed the Board of Directors of Sri Lanka Telecom PLC (SLT) and Lanka Hospitals PLC that the Cabinet of Ministers has granted approval in principle for the divestment of the stakes held by the Treasury Secretary in the two companies.

Top losers were Sampath Bank, Hatton National Bank and Commercial Bank.

Sri Lanka is looking at options to re-structure domestic debt, or local law local currency debt (LLLC), without harming the banking sector and announce them the International Monetary Fund said in a report.

Banks have been witnessing profit taking and selling pressures after continuous uptrends prior to the IMF loan had been approved.

Analysts said, selling pressures is expected to ease as the IMF hopes to reduce inflationary pressures which will in turn lead to reductions in interest rates. (Colombo/Mar23/2023)

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