Sri Lanka and a group of its creditors are in final negotiations to suspend debt repayments until 2028, Nikkei has learned, as country creditors including Japan seek to prevent China’s influence from expanding in the debt-ridden island.

“Negotiations [with the creditor nations] have concluded. We are hoping that it [a detailed announcement] will take place in the next few weeks,” Sagala Ratnayaka, Sri Lanka’s national security adviser to the president, told Nikkei in a recent interview. The repayment period will be 15 years, from 2028 to 2042, with the interest rate newly set at around 2%. He said that there will be no further debt reduction, despite a request by the island nation.

Sri Lanka in April 2022 announced a temporary suspension of public external debt payments, in effect putting the country into default. A meeting of creditor nations was set up in April 2023. Japan, which is the largest creditor country after China, is serving as the chair in the talks along with India and France.

Sri Lanka and the creditor nations have reached a basic agreement on a repayment moratorium and a reduction in interest. The provision of financial assistance from the International Monetary Fund, which was conditional on debt restructuring agreements being struck with major creditor countries, has also begun.

China, the biggest creditor, has only joined the meeting as an observer. However, the restructuring of debt from China via loans of the Export-Import Bank of China would be “similar,” Ratnayaka said. “We have a saying which means ‘everyone will be treated equally’,” implying that the terms of debt repayment to China would be similar to those agreed at the creditors’ meeting.

As of the end of 2023, Sri Lanka’s outstanding debt was $37.3 billion, of which China accounted for $4.7 billion.

Sri Lanka handed over control of its southern Hambantota Port to China in 2017. This was seen as a typical example of a “debt trap,” where infrastructure rights are taken away amid delayed debt repayments. Some creditors, including Japan and India, are wary of China expanding its influence into the Indo-Pacific, with Sri Lanka as its base.

Ratnayaka explained that “this is all purely commercial. There is nothing military [about the port agreement]. Sri Lanka is open to investment and we don’t pick and choose on the basis of what country, unless it affects national security.” He added, “But in the north and areas which would affect the security of India, we are conscious.”

Samagi Jana Balawegaya (SJB) will lead a second Aragalaya if this year's Presidential election is postponed, SJB Former MP Mujibur Rahman said as the party's May Day rally kicked off in Fort.

Apart from organizing a debate between Opposition Leader Sajith Premadasa and NPP Leader Anura Kumara Dissanayake, let us publicly reassure the Sinhalese people, perhaps in a solemn ceremony, that they will not allow the Northern and Eastern regions to gain the right to self-determination, Lanka Private Bus Owners' Association (LPBOA) Chairman Gemunu Wijerathne urged today.

SJB Chairman Field Marshal Sarath Fonseka made an early exit from the party's May Day Rally in Fort, a shortwhile ago. Fonseka was seen greeting MPs and Buddhist clergy before he left the rally.

As the Lok Shaba elections campaign heats up in India, the ruling Bharatiya Janatha Party (BJP) has invited representatives from Sri Lanka Podujana Peramuna (SLPP) and the United National Party (UNP) to gain awareness on the electoral process there, The Hindu newspaper reported.

Former President Maithripala Sirisena said today that Justice Minister Dr. Wijeyadasa Rajapakshe will be the Presidential candidate representing the Sri Lanka Freedom Party (SLFP). He made this revelation during the commemoration ceremony of the late T.B. Ilangaratne.

Samagi Jana Balawegaya (SJB) MPs Rajitha Senaratne and Tatha Athukorala were notable abesentees at party's May Day Rally in Fort today. All Ceylon Makalal Kachchi Leader SJB alley Rishath Bathiudeen, was another abesentee. Another feature is the prominence given to MPs G. L Peiris and Dilan Perera. They were given front seats.

Former Minister Mahindananda Aluthgamage has been acquitted from the case filed against him over allegations of money laundering related to the purchase of a house in Colombo.

Justice Minister Wijeyadasa Rajapakshe has filed a revision application in the Court of Appeal challenging the legality of the enjoining order issued by Colombo District Court preventing him from functioning as the Acting Chairman of the Sri Lanka Freedom Party (SLFP).

Former President Chandrika Bandaranaike Kumaratunga said today President Ranil Wickremesinghe invited her on several occasions to take up a position and support the government. Ms Kumaratunga told reporters that she refused the invitation, claiming that she could not take up any position until thieves were there in politics.

Conducting coaching or tuition classes aimed at the 2023 (2024) G.C.E. Ordinary Level (O/L) Examination aspirants will be prohibited from tonight till the exams are concluded, the Department of Examinations said.

Samagi Jana Balawegaya (SJB) General Secretary Ranjith Madduma Bandara today hit out at the party's Organizer Gamini Vijith Vijithamuni Soysa who has been critical of the party leadership lately. Former MP Soysa was reported to have complained that he has been sidelined by the SJB leadership.

State Minister of Finance Shehan Semasinghe expressed confidence in exceeding the $ 5 billion mark by year-end, driven by the strong growth in the tourism sector.

A man in Mullaitivu District claimed to be the tallest person in Sri Lanka. According to BBC Sinhala Service, Gunasingham Kasenthiran, a former cadre of the proscribed Liberation Tigers of Tamil Eelam (LTTE) who lives in Kaiveli, Puthukudiruppu is seven feet two inches tall.

In an effort to nip any discord with India in the bud, Sri Lanka Freedom Party (SLFP) faction led by Nimal Siripala de Silva as acting chairman called on Indian High Commissioner Santosh Jha and disassociated itself from remarks by its former Chairman Maithripala Sirisena implicating alleged Indian involvement in orchestrating the Easter Sunday attacks, an informed source said.

The Sri Lankan Rupee has depreciated slightly against the US Dollar at commercial banks in Sri Lanka today (Apr 29) compared to last week. According to Seylan Bank, the buying and selling rates of the US Dollar are unchanged at Rs. 290.50 and Rs. 301, respectively.

An attempt to send a 17-year-old boy abroad on forged travel documents was foiled and two women suspected of their involvement in the racket were arrested by the Border Surveillance Unit of the Department of Immigration and Emigration at the Bandaranaike International Airport.

The Bar Association of Sri Lanka (BASL) has expressed serious concern over recent remarks made by Minister Tiran Alles, and urging President Ranil Wickremesinghe to remove him from the portfolio of Public Security.

Political tremors are expected on May Day (Wednesday) as members of a few political parties are expected to appear at the UNP May Day rally, UNP Deputy Leader Ruwan Wijewardene said over the weekend.

The Anuradhapura High Court on Friday passed a death sentence on five police officers who were found guilty of killing eight Tamil civilians at the Bharathipuram village in Kantale 26 years ago. The sentence was passed by High Court Judge Manoj Thalgodapitiya.

Former Army commander Sarath Fonseka told Parliament today (April 26) that the person who had groomed the main Easter Sunday suicide bomber – Zahran Hashim, is the current head of the State Intelligence Service (SIS) Maj Gen (Rtd.) Suresh Salley.