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Thursday April 18th, 2024

Sri Lanka to build temporary terminal at BIA

ECONOMYNEXT – Sri Lanka is to build a temporary second terminal at its main airport, the Bandaranaike International Airport, to accommodate the increasing number of tourists, while a JICA grant to build a second terminal is on hold until the completion of the debt restructuring process, Minister of Ports and Aviation Nimal Siripala DeSilva said.

“The decision to build a second terminal with a Japan International Cooperation Agency (JICA) grant was halted, when the country declared bankruptcy. So today we have a half-built building,” De Silva said.

“But JICA has promised that once the debt restructuring is finalised, they will once again make installations of the funds for the development of the second terminal.”

The ongoing construction of a second terminal, according to De Silva, is a stop-gap measure to ease the congestion issues as the number of incoming tourists increases.

A Parliamentary Sectoral Monitoring Committee that operates under the chairmanship of MP Mahindananda Aluthgamage recently discussed the development of infrastructure, including accommodation facilities needed in Sri Lanka, in order to target 5 million tourists in 2024.

“We won’t wait until then to resolve the issues arising from the overburdened facility,” he said. “We have installed a temporary terminal, which isn’t exactly temporary, meant to accommodate more visitors to the country.”

Read more:

Sri Lanka tourist arrivals expected to top 1.5 million in 2023: official

Japan halts 12 JAICA projects in Sri Lanka until IMF provides roadmap: minister

Minister De Silva said that around 150,000 persons can be accommodated in the terminal, which will be built in six months with 6 billion rupees that has been set aside for the purpose.

“Tenders have been called for the terminal, which will be closed by January 15, and we will be able to open it by mid-February.”

He said that from February onwards they expect to open 30 additional check-in counters, to resolve the present bottle neck at the BIA.

“The Airport and Aviation Services, which is in charge of overseeing all airports, has made a 26 billion [rupee] profit. The loss making of Mattala has been reduced by 25 percent.”

Related:

Sri Lanka’s Mattala Airport loses billion rupees in 2023: Minister

 

“The newly opened Palali Airport has also generated 12 million rupees. The aviation services are headed towards reaping more profits and enabling resilience in the economy.” (Colombo/Dec12/2023)

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Sri Lanka’s discussions with bondholders constructive: State finance minister

ECONOMYNEXT – Sri Lankan authorities continue to engage all debt restructuring negotiations in good faith, within principles of equitable treatment among creditors, and with maximum transparency within the norms of such negotiations, State Minister of Finance, Shehan Semasinghe has said.

“It is standard practice, when a representative group of bondholders is formed, to entertain confidential discussions with such group and its appointed advisors. In the case of Sri Lanka, the Ad Hoc Group of Bondholders represents holders controlling more than 50% of the bonds, which make them a privileged interlocutor for Sri Lanka,” Semasinghe said on X (twitter).

“It is well understood that given the price sensitive nature of the negotiations, and according to market regulations, discussions with the Group and its advisors are to be conducted under non-disclosure agreements. This evidently restricts the ability of the Government to unilaterally report about the substance of the discussions.

“The cleansing statement, which was issued on the 16th of April, at the conclusion of this first round of confidential discussions with members of the Group, aims at informing the Sri Lankan people, market participants and other stakeholders to this debt restructuring exercise, about the progress in negotiations. It provides the highest possible level of transparency within the internationally accepted practices in such circumstances.

“As informed in this statement, confidential discussions held in recent weeks with bondholders’ representatives proved constructive, building on the restructuring proposals presented by both parties. During the talks both sides successfully bridged a number of technical issues enabling important progress to be made. Sri Lanka articulated key remaining concerns that need to be addressed in a satisfactory manner.

“The next steps would entail further consultation with the IMF staff regarding assessments of the compatibility of the latest proposals with program parameters. Following these consultations, we hope to continue discussions with the bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka’s EFF program.”

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Sri Lanka rupee weakens at 301.00/302.05 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 301.00/302.05 to the US dollar in the spot forex market on Tuesday, from 299.00/10 on Tuesday, dealers said. Bond yields were broadly steady.

A bond maturing on 15.12.2026 closed stable at 11.30/35 percent.

A bond maturing on 15.09.2027 closed at 11.90/12.05 percent up from 11.95/12.00 percent.

A bond maturing on 15.12.2028 closed at 12.10/20 percent down from 12.10/15 percent.

A bond maturing on 15.07.2029 closed at 12.25/40 percent.

A bond maturing on 15.03.2031 closed at 12.30/50 percent. (Colombo/Apr17/2024)

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Sri Lanka Treasury Bill yields down across maturities

ECONOMYNEXT – Sri Lanka’s Treasuries yields were down across maturities at Wednesday’s auction with the 3-month yield moving down 7 basis points to 10.03 percent, data from the state debt office showed.

The debt office sold all 30 billion rupees of 3-month bills offered.

The 6-month yield fell 5 basis points to 10.22 percent, with 25 billion rupees of bills offered and 29.98 billion rupees sold.

The 12-month yield dropped 4 basis points to 10.23 percent with 18.01 billion rupees of bills sold after offering 23 billion rupees. (Colombo/Apr17/2024)

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