Treasury Secretary Mahinda Siriwardena yesterday described Sri Lanka reaching agreements with the Official Creditors Committee (OCC) and China EXIM Bank as a “critical milestone”, and said the Government is continuing the process to stabilise and promote long-term economic growth.

“Sri Lanka and its officially OCC formally signed the Memorandum of Understanding (MoU) on debt treatment today (26) on the sidelines of the Paris Forum, marking a historical day in taking decisive measures to improve the economy,” he noted via a post via ‘X’.

He added that the announcement of the final agreements for debt treatment with the OCC and China EXIM Bank is a critical milestone in Sri Lanka’s debt restructuring process.

“We should stay focused on implementing reforms while continuing remaining areas in this process to strengthen the economy,” Siriwardena added.

The President’s Media Division said on June 26, 2024, Sri Lanka concluded negotiations with the Official Creditor Committee (OCC) and China Exim Bank, marking pivotal strides towards stabilising its financial footing amid recent economic challenges.

The agreements, valued at a combined $ 10 billion, encompass restructuring arrangements with major bilateral lenders under the auspices of the OCC, co-chaired by Japan, India, and France. Notable members of the committee include Australia, Austria, Belgium, Canada, Denmark, Germany, Hungary, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, and the United States of America.

PMD said during the recent economic downturn, Sri Lanka faced severe foreign exchange constraints, necessitating urgent measures to address its mounting external debt. Failure to restructure would have precluded Sri Lanka from accessing crucial IMF support, essential for economic recovery amidst unsustainable debt levels.

The IMF’s Debt Sustainability Analysis (DSA) guided the restructuring process, determining necessary debt relief measures to align with Sri Lanka’s fiscal recovery objectives. Each creditor, including the OCC and China Exim Bank, agreed to extend maturity periods, initiate capital grace periods, and reduce interest rates significantly. These measures collectively alleviate Sri Lanka›s near-term debt service obligations, freeing up resources for essential public expenditures crucial for economic stabilisation and growth.

«This restructuring provides up to 92% relief on debt service payments during the IMF program, offering substantial fiscal breathing room crucial for prioritizing public services and stimulating economic growth,» PMD quoted an unnamed senior Government official as saying.

It said beyond immediate fiscal benefits, the agreements pave the way for renewed bilateral financing opportunities, essential for resuming critical infrastructure projects. This infusion of foreign investment is anticipated to invigorate sectors such as construction, bolstering job creation and economic resilience.

Moreover, the successful restructuring sets the stage for potential improvements in Sri Lanka’s credit ratings once agreements with commercial bondholders are finalised. Enhanced credit ratings are expected to reduce the cost of foreign financing and facilitate easier access to international capital markets, fostering broader economic stability and growth.

«Looking ahead, Sri Lanka remains committed to finalising agreements with commercial bondholders swiftly, building on the momentum gained from these landmark restructuring deals. The concerted efforts underscore Sri Lanka’s determination to navigate complex financial challenges, positioning the nation for a sustainable and robust economic recovery, PMD added.

The Department of Immigration and Emigration has extended the validity of all passports that expire from June end by one year until the issuance of the e-passport project takes off in January next year.

Sri Lanka registered its concerns with India on the death of a navy sailor in his attempt to seize an Indian fishing boat poaching in Sri Lankan waters, an informed source said.

Whilst highlighting that Samagi Jana Balawegaya (SJB) MP Sarath Fonseka is a man of ability who never gives up, President Ranil Wickremesinghe yesterday said Sri Lanka will get the opportunity of enjoying the services of the former in the near future.

Inflation in the Colombo district accelerated in June as widely expected, mainly due to the higher food prices, but the prices still remain largely below Central Bank’s medium term target of 5 percent.

The Grama Niladhari Trade Union Alliance (GNTUA) has decided to continue with their work-to-rule campaign today. The co-conveners of the alliance said the decision was taken following an unproductive meeting with the representatives of the Prime Minister yesterday. They said their trade union action was based on several issues concerning the constitution of Grama Niladhari services and not increasing the allowances.

The Uppuweli Police have launched an investigation to locate a 25-year-old Israeli female tourist, Tamar Amitai, who has been missing since Wednesday (26) while visiting Sri Lanka.

A suspected bird flu patient has been reported from the Infectious Disease Hospital (IDH), a top source told the Daily Mirror. The diagnosed person is a male foreigner. The patient was tested for influenza, which showed positive following a PCR test. Subsequently he was tested for the subtype of influenza A, which is influenza A/H1N1.

Former Colombo district Parliamentarian Hirunika Premachandra was found guilty of her involvement in the abduction of a youth using a Defender and was given a three-year prison sentence by the Colombo High Court today.

Former Colombo district Parliamentarian Hirunika Premachandra, who has been jailed for 3 years by the High Court of Colombo for her involvement in the abduction of a youth using a Defender, is expected to seek bail from the Colombo High Court.

The Japanese Ambassador to Sri Lanka, Misukoshi Hideki, said that Japan will promptly resume its projects in Sri Lanka that were previously halted, once the related MoUs are signed.

The Election Commission which will get constitutional authority to conduct the presidential election independent of any governmental interference in another three weeks time has sprung up into action by issuing a circular to initiate action for staff, vehicle mobilization and polling centre inspections, an official said.

China’s Vice Minister of Foreign Affairs, Sun Weidong, called on former President Mahinda Rajapaksa in Beijing today and reiterated the strong partnership between China and Sri Lanka.

Former President Mahinda Rajapaksa left for a four day official visit to China today morning and will hold discussions with Chinese Prime Minister Li Qiang and Foreign Minister Wang Yi during his stay, the Daily Mirror learns.

President Ranil Wickremesinghe visited the Chief Prelate of the Malwatu Chapter, Most Ven. Thibbatuwawe Sri Sumangala Maha Nayaka Thera and the Chief Prelate of the Asgiri Chapter, Most Ven. Warakagoda Sri Gnanarathana Nayaka Thera a short while ago.

The Constitutional Council has again rejected President Ranil Wickremesinghe's proposal to extend Attorney General Sanjay Rajaratnam's term by six months. In a recent vote, five members opposed the extension while three supported it.

Markham, Canada - Over fifteen years following the end of Sri Lanka’s Genocidal war against Eelam Tamils, families of the forcibly disappeared are still searching for answers about the whereabouts of their loved ones. The recent UN Human Rights Office report released on May 17 highlights the ongoing issue of enforced disappearances in Sri Lanka and urges the Sri Lankan government to take action to strengthen their truth-seeking mechanisms and to ensure accountability for all perpetrators. Furthermore, on June 5, a report launch event titled "15 Years of Official Peace" convened to unveil the findings of this document and discuss the conclusion with panellists.

The United States Ambassador to Sri Lanka, Julie J. Chung, has expressed support for the final agreement on debt restructuring between Sri Lanka and its creditor nations. The agreement was reached today on the sidelines of the Paris Forum 2024.

Sri Lanka has reached a final restructuring agreement for $5.8 billion of debt with its bilateral lenders' Official Creditor Committee in Paris. According to the President’s Media Division, the agreement was finalized a short while ago.

Foreign Minister Ali Sabry is scheduled to undertake an official visit to Japan from July 1, the Foreign Affairs Ministry said. They said the visit will be made on an invitation extended by Japanese Foreign Minister Yoko Kamikawa,

A fatal accident on Tuesday night resulted in the deaths of three persons and left two others injured when a lorry collided with a parked bus on the A9 road in Mankulam, according to police.