President of Sri Lanka Ranil Wickremesinghe.
| Photo Credit: PTI

Sri Lankan President Ranil Wickremesinghe will contest the Presidential election as an independent candidate, his aide said on July 7.

Deputy Chairman of the United National Party Ruwan Wijewardene confirmed that the presidential election will definitely be held and Mr. Wickremesinghe, 75, will contest the election as an independent candidate, News 1st reported.

“Only one leader possesses the knowledge to solve Sri Lanka’s economic crisis. That is Ranil Wickremesinghe. He has proved it with his actions,” he was quoted as saying by the news portal.

On July 7, Election Commission Chairman R.M.A.L. Ratnayake said the electoral body would be legally empowered after July 17 to announce the date for the election.

Mr. Ratnayake added that the commission will announce the date for the next presidential poll before the end of this month.

The Election Commission in May said the presidential election would be conducted between September 17 and October 16.

Mr. Ratnayake said the commission is currently in the process of putting final touches to the 2024 electoral register which will be the basis for the election. Over 17 million would be eligible to vote in the election as per the revised list, officials said.

In April 2022, the island nation declared its first-ever sovereign default since gaining Independence from Britain in 1948. The unprecedented financial crisis led President Gotabaya Rajapaksa to quit office in 2022 amid civil unrest over his inability to handle the crisis.

In July 2022, Mr. Wickremesinghe was elected through parliament to become stop-gap President for the balance term of Mr. Rajapaksa.

Mr. Wickremesinghe, also the Finance Minister, hasn’t made any public statement on his bid for re-election.

“This election isn’t merely about selecting individuals but about choosing the most effective system for our country’s progress. If you believe in the merits of the current approach, let us proceed accordingly,” the President’s Media Division quoted him as saying earlier.

The government under Mr. Wickremesinghe has set in place hard economic reforms as dictated by the International Monetary Fund (IMF) programme.

President Wickremesinghe last month said that his government has finalised a long-delayed debt restructuring agreement for $5.8 billion with its bilateral lenders, including India and China, in Paris to meet a key condition of an IMF bailout.

Sri Lanka State Minister of Finance Asanka Shehan Semasinghe.
| Photo Credit: EMMANUAL YOGINI

Sri Lanka has reached a debt restructuring deal with the international sovereign bondholders after protracted negotiations, state Finance Minister Shehan Semasingher said on July 4, calling it a “crucial step” in the cash-strapped country’s efforts to restore debt sustainability.

In a statement, State Minister of Finance Mr. Semasinghe said that an agreement on restructuring terms was reached on July 3, completing Sri Lanka’s debt restructuring process.

“ISBs (International Sovereign Bonds) account for $12.5 billion out of the total external debt of $37 billion. This agreement is a crucial step in our efforts to restore debt sustainability,” Mr. Semasinghe said.

He added that the agreement with private bondholders was subject to the approval by the official creditor committee of nations, including India.

“This marks another key milestone in our journey towards economic revival and strengthening,” he said.

Officials said the expected haircut agreed upon would amount to 28%, with an upfront payment to ISB holders commencing from September this year.

Officials said this completes Sri Lanka’s debt restructuring process, which came as a prerequisite for debt sustainability in the ongoing International Monetary Fund (IMF) bailout of $2.9 billion extended in March 2023 over a period of four years.

It follows the finalisation of debt restructuring agreements with bilateral lenders, including India and China, in Paris on June 26, which President Ranil Wickremesinghe described as a “significant milestone” for bolstering international trust in the debt-ridden economy.

Sri Lanka declared its first-ever sovereign default in mid-April 2022, having run out of its foreign exchange reserves. The halt to the debt services meant that the multilateral creditor nations and commercial lenders could not extend fresh financing to the country.

The government faced criticism from the main Opposition after last week’s announcement on bilateral debt restructuring, who claimed that the government had failed to achieve the best solution for the country.

Dismissing the Opposition’s criticism of debt restructuring as “inaccurate,” President Wickremesinghe, also the finance minister, said, “No bilateral creditor would agree to a reduction of principal amount. Instead, concessions are allowed through extended repayment periods, grace periods and lower interest rates.” A two-day parliamentary debate was postponed as the Opposition demanded agreements to be furnished.

Mr. Wickremesinghe said he would submit all agreements and documents regarding debt restructuring to a Parliament committee upon reaching a deal with the private bondholders.

A man walks past posters which said ‘good news’ in Colombo on June 25, 2024, as President Ranil Wickremesinghe is expected to announce a debt restructuring deal with bilateral lenders after a sovereign default in April 2022.
| Photo Credit: AFP

Sri Lanka’s government said on June 26 it has finalised a long-delayed debt restructuring agreement for $5.8 billion with its bilateral lenders, including India and China, in Paris to meet a key condition of an IMF bailout.

This was announced by President Ranil Wickremesinghe’s office, which said the agreement grants significant debt relief allowing Sri Lanka to allocate funds to essential public services and secure concessional financing for its development needs.

‘An end to bankruptcy’

“Sri Lanka reached a final restructuring agreement for $5.8 billion with its bilateral lenders’ official creditor committee in Paris,” the President’s office said in a statement.

The statement came ahead of a televised address to the nation later tonight by Mr. Wickremesinghe, who has steered the effort to take the island out of the economic crisis since Sri Lanka declared its first-ever sovereign default in 2022.

Mr. Wickremesinghe, who also holds the portfolio as the finance minister, is expected to contest the presidential election in the coming months.

It is understood that Mr. Wickremesinghe, 75, will ‘declare an end to bankruptcy’ following the agreement reached with bilateral creditors and private bondholders on external debt restructuring.

State Finance Minister Shehan Semasinghe announced that the Sri Lankan authorities are also in the process of signing bilateral debt treatment agreements between Sri Lanka and the Export-Import Bank of China.

“On behalf of Sri Lanka, I would like to sincerely thank the OCC chairs — France, India, and Japan — as well as the Export-Import Bank of China for their leadership in this process, as well as all OCC members for their unwavering support,” he said.

He also commended the OCC Secretariat for their dedication to resolving the debt crisis and noted that achieving this significant milestone would enhance confidence in Sri Lanka’s economy and foster growth.

The debt restructuring deal

This agreement means that half of the government’s external debt by creditor countries and organisations has been restructured. The details of the restructuring are yet to be announced.

According to the Treasury figures, as of the end of March 2024, the debt stock outstanding remained at $10,588.6 million.

The official creditor committee comprised the Paris Club of Nations — Japan, the UK, and the U.S. — while the non-Paris Club nations were China, India and the rest.

The government officials said a special session of Parliament is to be convened on July 2 ahead of its scheduled July 8 date to discuss the deal.

Speaker Mahinda Yapa Abeywardena has issued a special gazette convening parliament on July 2 at the request of Prime Minister Dinesh Gunawardena.

Having sealed the deal with the bilateral creditors the Government was to have another round of talks starting this week with private creditors and the international sovereign bondholders for restructuring.

By March 2024, the outstanding commercial loan stock was $14,735.9 million.

Waiting for the ‘good news’

Earlier this week, posters appeared on the city walls captioned “good news” which appears to be part of the political campaign on the success of the debt restructuring effort which took so long to achieve.

Sri Lanka in mid-April of 2022 declared its only sovereign default since gaining independence in 1948.

The International Monetary Fund had made external debt restructuring conditional to the $2.9 billion bailout, the third tranche of which came to be released last week.

Mr. Wickremesinghe supervised the IMF programme while setting in motion hard economic reforms prescribed by the world lender. On June 23, he made his first public statement on the presidential election, which is likely to take place in the last quarter of this year.

Addressing a group of youth, he said that the election could take place either in September or October.

Mr. Wickremesinghe is yet to announce his candidacy, while two other main opposition leaders have already declared their candidacy. In July 2022, he was elected through parliament to become stop-gap president for the balance term of Gotabaya Rajapaksa who resigned following public protests over his inability to handle the economic crisis.

External Affairs Minister S. Jaishankar being welcomed by Governor of Eastern Province of Sri Lanka, Senthil Thondaman, upon his arrival in Colombo, Sri Lanka, Thursday, June 20, 2024.
| Photo Credit: PTI

External Affairs Minister S. Jaishankar arrived in Sri Lanka on Thursday, June 20, 2024, his first visit here in his second consecutive term in office, during which he will hold talks with the country’s leadership to bolster bilateral ties.

Also read: India will collaborate with Sri Lanka on debt treatment: Nirmala Sitharaman

Mr. Jaishankar was received by Tharaka Balasuriya, State Minister of Foreign Affairs, and Senthil Thondaman, Governor of the Eastern Province, on his arrival in Colombo.

“Landed in Colombo for my first visit in the new term. Thank Minister of State @TharakaBalasur1 and Governor of Eastern province @S_Thondaman for the warm welcome. Look forward to my meetings with the leadership,” Mr. Jaishankar posted on X.

Sri Lanka is central to India’s Neighbourhood First and SAGAR policies, he wrote.

Mr. Jaishankar and Sri Lankan President Ranil Wickremesinghe jointly unveiled the virtual plaque to mark the formal commissioning of the Maritime Rescue Coordination Centre (MRCC) in Sri Lanka under a $6 million grant from India, according to the Presidential Media Division Colombo.

This includes a centre at Navy headquarters in Colombo, a sub-centre in Hambantota and unmanned installations at Galle, Arugambay, Batticaloa, Trincomalee, Kallarawa, Point Pedro and Mollikulam, said the statement.

Mr. WickremesingheDr. Jaishankar jointly unveiled the virtual plaque for 106 houses in Kandy, Nuwara Eliya and Matale under the Indian Housing Project with 24 houses in each model village in Colombo and Trincomalee being handed over virtually.

Neighbourhood-first policy

Under its ‘Neighbourhood First’ policy, India is committed to developing friendly and mutually beneficial relations with all its neighbours.

SAGAR or Security and Growth for All in the Region is India’s vision and geopolitical framework of maritime cooperation in the Indian Ocean region.

The trip to Sri Lanka will be Mr. Jaishankar’s standalone bilateral visit after he assumed charge as the External Affairs Minister for the second term on June 11.

Mr. Jaishankar was last week part of Prime Minister Narendra Modi’s delegation at the G7 Outreach summit in Italy’s Apulia region.

The Ministry of External Affairs (MEA) in New Delhi said the External Affairs Minister will have meetings with the Sri Lankan leadership on wide-ranging issues.

“This will be the External Affairs Minister’s first bilateral visit after the formation of the new government under Prime Minister Narendra Modi,” it said.

“Reaffirming India’s Neighbourhood First Policy, the visit underlines India’s continued commitment to Sri Lanka as its closest maritime neighbour and time-tested friend,” the MEA said in a statement.

“The visit will add momentum to connectivity projects and other mutually beneficial cooperation across sectors,” it said.

Sri Lankan President Ranil Wickremesinghe was among seven top leaders from India’s neighbourhood and the Indian Ocean region who attended the swearing-in ceremony of Prime Minister Modi and the Union Council of Ministers at the Rashtrapati Bhavan on June 9.

(With inputs from PTI)

Sri Lankan President Ranil Wickremesinghe. File
| Photo Credit: AP

President Ranil Wickremesinghe on Wednesday said Sri Lanka needs to connect with neighbouring India to reap the benefits of its massive industrial development.

“Our neighbour India is going through a phase of massive industrial development. Tamil Nadu, Telangana and Andhra Pradesh are experiencing it. We must also join in,” said Mr. Wickremesinghe in his address at the Industry 2024 event in Colombo.

The president said he was hopeful of discussing with External Affairs Minister Dr. S. Jaishankar, who is due to arrive in Colombo on Thursday, about the follow-up on his interaction with Prime Minister Narendra Modi during his visit to India.

“Usage of solar and wind powers and to obtain liquid hydrogen are areas where we hope to work in collaboration with India,” Mr. Wickremesinghe, also the finance minister, said, adding that Adani projects in Sri Lanka have pioneered these efforts.

Sri Lanka in the second quarter of 2022 had declared bankruptcy announcing the island’s first ever sovereign default.

Negotiations with the International Monetary Fund for a bailout began almost immediately and the first tranche of the $2.9 billion facility was released in March 2023.

The cash-strapped country has introduced a set of hard reforms to address its economic woes.

Despite the outstanding issue of debt restructuring, three tranches worth $1 billion of the $2.9 billion bail-out have been materialised subject to reforms.

Mr. Wickremesinghe said that by ongoing debt restructuring negotiations, the government was hoping to get time until 2042 to repay.

He said it was important for Sri Lanka to convert into becoming an export-oriented economy from the current import-oriented one.

“Since we are an import-oriented economy, we have to find money to import. To become an export-oriented economy, we have to be competitive with our industries to become a production economy,” the president said.

The IMF while commending Sri Lanka’s recovery efforts said the island nation’s economy is far from being safe unless persisted with hard reforms needed.

Sri Lankan President Ranil Wickremesinghe. File
| Photo Credit: AP

Sri Lankan President Ranil Wickremesinghe said on Sunday that the feasibility study on a proposal to establish land connectivity with India is in its final stages.

Mr. Wickremesinghe, who was travelling in the northeastern district of Mannar to inspect the development work in the region, said that the preliminary work of the feasibility study was over and the final phase would be completed soon.

This proposal and the prospect of a power grid connection between the two nations are likely to be discussed during the visit of External Affairs Minister S. Jaishankar to Lanka this week.

Mr. Wickremesinghe said a commercial venture to sell the excess renewable energy to India would also be discussed during the minister’s visit.

On Saturday, the Lankan foreign ministry here announced that Jaishankar would arrive in Colombo on June 20.

However, there was no official announcement on Jaishankar’s visit from India’s Ministry of External Affairs.

If confirmed, this could be Jaishankar’s first official stand-alone visit abroad after he was appointed India’s External Affairs Minister in the new government early this month.

Officials here confirmed that all Indian projects in Sri Lanka, including the Adani group’s wind power project in Mannar and the creation of an industrial zone in the eastern port district of Trincomalee, would be discussed during the visit.

Fisheries Minister Douglas Devananda has been quoted as saying in the local media that Sri Lanka would raise the contentious issue of illegal fishing in Sri Lankan waters by Indian fishing, including bottom trawling.

The Palk Strait, a narrow strip of water separating Tamil Nadu from Sri Lanka, is a rich fishing ground for fishermen from both countries.

Fishermen from both countries are arrested frequently for inadvertently trespassing into each other’s waters.

Updated – May 21, 2024 12:03 pm IST

Published – May 21, 2024 11:40 am IST

File photo of Iranian President Ebrahim Raisi, who was found dead at the site of a helicopter crash site on May 20, 2024.
| Photo Credit: AP

Sri Lanka is observing May 21, 2024, as a national day of mourning in view of Iranian President Ebrahim Raisi’s sudden death. The island nation’s flag will fly at half-mast at all state institutions on Tuesday, according to the Ministry of Public Administration.

“Sri Lanka is deeply shocked and saddened by the tragic death of President Ebrahim Raisi, Foreign Minister Amir Abdollahian and other senior Irani officials. I express my deepest sympathies and sincere condolences to the bereaved families, the government and the people of Iran. Our thoughts and prayers are with the families of President Raisi and his entourage,’ President Ranil Wickremesinghe said on social media platform ‘X’ on Monday.

Leaders across the country’s political spectrum condoled the passing of President Raisi, who was in Sri Lanka less than a month ago.

During his visit, President Raisi inaugurated a $514-million irrigation project that is expected to augment Sri Lanka’s energy resources, and made an emphatic call for the attack on Gaza to end.

File picture of Sri Lankan President Ranil Wickremesinghe
| Photo Credit: AP

Sri Lanka will hold presidential election between September 17 and October 16, the country’s top electoral body announced on Thursday.

In a notice signed by its chairman R.M.A.L. Ratnayake, the Election Commission said it will call for nominations to hold the Presidential election within the specified timeframe in terms of the provisions of the Constitution, according to local media reports.

It said that the presidential election will be held on a day between September 17 and October 16.

President Ranil Wickremesinghe is expected to contest the presidential election under a new symbol, his top aide said last month.

In May 2022, Mr. Wickremesinghe replaced Mahinda Rajapaksa as prime minister following anti-government protests over the unprecedented economic crisis in the island nation. Two months later, he replaced Gotabaya Rajapaksa as the President to serve the balance term until the end of 2024.

Mr. Wickremesinghe, 75, will represent several parties as a national candidate, Senior Presidential Advisor and UNP senior leader Ashu Marasinghe said last month.

The veteran politician has led the United National Party (UNP) since 1994. He has served as prime minister on five occasions, leading six governments.

President Wickremesinghe may have a face-up with his cabinet colleague Wijeyadasa Rajapakshe, who is currently serving as the Minister of Justice.

Former president Maithripala Sirisena, the chairman of Sri Lanka Freedom Party (SLFP), recently said that Rajapakshe, 65, would be his party’s candidate in the presidential election.

Sri Lankan President Ranil Wickremesinghe with his Iranian counterpart Ebrahim Raisi in Colombo.
| Photo Credit: Special Arrangement

The Global South must strive for their strength and autonomy, Sri Lankan President Ranil Wickremesinghe said on Wednesday, even as he thanked his Iranian counterpart Ebrahim Raisi, who inaugurated a key power and irrigation project in the island nation.

Expressing “gratitude to Iran for their technical support”, Mr. Wickremesinghe emphasised that without Iran’s assistance, Sri Lanka would not be able to execute the crucial $514 million irrigation project. Consequent to the project, around 6,000 hectares of agricultural land in three southern and central districts will receive water supply, his office said. Further, the project is expected to generate and add 120 MW to the national grid.

Mr. Wickremesinghe’s pitch for greater autonomy for the Global South came amid media reports in Sri Lanka of “Western pressure” on Colombo. Mr. Raisi landed in Sri Lanka ten days after Iran launched an unprecedented missile and drone attack on Israel, retaliating against the April 1 air strike on the Iranian Embassy compound in Damascus. While the two sides appear to have backed off from a regional conflict for now, tensions remain high, with Israel continuing its ceaseless attack on Gaza. During his just concluded three-day visit to Pakistan, President Raisi warned Israel that “nothing will be left of the Zionist regime” if Tel Aviv attacks Iran again.

Meanwhile, the Sri Lankan government announced the signing of five agreements with Iran. Sri Lanka has pledged to expand bilateral ties and development cooperation with the West Asian country and expressed interest in tapping its expertise in the energy, water, agriculture, nanotechnology, pharmaceutical and biotechnology sectors. In February this year, Iranian Foreign Minister Hossein Amir-Abdollahian visited Colombo and expressed satisfaction over the barter trade agreement under which Iran supplies crude oil to Sri Lanka, in return for tea. Iran agreed to offset payment of $250 million for its crude oil, by importing tea from Sri Lanka. The two countries also agreed to explore trading in Asian currencies instead of U.S. dollars.

A file photo of Sri Lankan President Ranil Wickremesinghe
| Photo Credit: AP

Sri Lankan President Ranil Wickremesinghe on March 22 released 234 acres of land, previously held by the Jaffna Security Forces Headquarters, to farmers in the area, a statement said.

Jaffna is a Tamil-dominated capital city of the Northern Province of Sri Lanka.

The President’s Media Division of Sri Lanka (PMD) said in a post on X: “President Ranil Wickremesinghe released 234 acres of land which were previously held by the Jaffna Security Forces Headquarters, to farmers for cultivation purposes in 5 Grama Niladhari Divisions in Jaffna.”

These plots of land were released to farmers across five Grama Niladhari Divisions in Jaffna for cultivation purposes, The Morning News website reported.

Under the Urumaya national programme, aimed at distributing two million freehold deeds to the deserving public, Mr. Wickremesinghe symbolically presented the deeds, benefiting 408 individuals at a ceremony held in Jaffna’s Oddakapulam.

Also read: Rajiv Gandhi’s assassination and the downfall of LTTE

Jaffna holds great significance as it was the region where the Liberation Tigers of Tamil Eelam (LTTE) had run a military campaign for a separate Tamil homeland for nearly 30 years before its collapse in 2009 after the Sri Lankan Army killed its supreme leader V. Prabhakaran.

The region has lacked economic development and the Sri Lankan leaders have said they are committed to the development of the Tamil-dominated Northern and Eastern provinces of the island nation.