Governor Condems Trump's False Pets Claim

Edited Version of 2024 US Presidential Debate Trump Vs Kamala ABC News

 

Straying from IMF debt plan could delay bailout: Finance Ministry

 Straying from IMF debt plan could delay bailout: Finance Ministry

By Bandula Sirimanna Sunday Times 15-09-2024

The Finance Ministry has issued a strong warning about the significant risks associated with challenging the country’s current debt sustainability assessment (DSA). Such actions could endanger Sri Lanka’s ongoing International Monetary Fund (IMF) bailout programme, potentially delaying vital financial support for months or even years.

In a detailed statement, the Ministry emphasised the critical need to adhere to the IMF’s established debt framework.

The IMF mandates that countries seeking financial aid must demonstrate sustainable debt levels. If Sri Lanka’s debt is deemed unsustainable, the IMF will not be able to proceed with the bailout.

This underscores the importance of aligning the country’s debt restructuring efforts with the IMF’s guidelines to secure the necessary relief and meet debt targets.

Sri Lanka has made notable progress under the current IMF programme, but the road to recovery is still precarious. According to IMF Senior Mission Chief Peter Breuer, continuing with reforms aimed at fostering stable and inclusive economic growth is essential to avoid a return to crisis.

A key challenge remains achieving the primary fiscal balance—excluding interest payments—required to restore debt sustainability. From 2025 onwards, this balance must reach at least 2-3 per cent of GDP, based on realistic budget assumptions, he added.

However, some economic experts, including a former Treasury Secretary who wished to remain anonymous, have criticised the IMF’s debt sustainability analysis (DSA) methodology.

They argue that the estimated reduction in external debt is insufficient and that domestic debt restructuring unfairly burdens the working population by imposing losses on pension funds, which hold sovereign debt.

These experts contend that the focus should be on reducing foreign exchange-denominated debt, as the current approach may not deliver the necessary relief.

Recent media reports indicated that
Sri Lanka did not devise its own DSA during debt restructuring negotiations.

The Finance Ministry responded by clarifying that while Sri Lanka has made amendments to IMF agreements in the past, the current situation is different due to the central role of debt restructuring in the ongoing IMF-supported economic reform programme.

Sri Lanka is now part of the IMF’s Market Access Sovereign Risk and Debt Sustainability Framework (MAC SRDSF), a model that assesses debt sustainability for middle-income countries. This framework is rigid, with debt targets that can only be adjusted under significant changes in circumstances.

Sri Lanka has developed its own internal DSA, with the assistance of debt advisors, to inform its negotiating strategy during talks. However, the IMF’s DSA remains the independent benchmark to ensure that any agreements with creditors meet the required debt relief targets.

The Ministry has warned that opposing the IMF’s DSA could lead to severe delays in securing financial support, which would be disastrous for Sri Lanka’s fragile economy. The Ministry advocates for a pragmatic approach, emphasising the importance of timely action to protect the nation’s economic future.

Northern youth as yet unconvinced amid joblessness

Despite the (ITAK) party central committee decision to support Mr.Premadasa, its supporters, backed by MPs launched pocket meetings canvassing votes for the Tamil common candidate. 

Northern youth as yet unconvinced amid joblessness

By S. Rubatheesan  Sunday Times 15-09-2024

Most Northern voters, particularly young people, are as yet undecided whom to vote for in the presidential election next Saturday.

For Sriharan Abilash, 20, of Aralay North, this will be the first time he is going to cast his vote, but he is not sure. “I’m going to wait for a couple of more days to decide.’’

He expects a stable economy and a boost for the rural economy since many districts in the province lack infrastructure and job opportunities for the youth who are leaving for work overseas.

“This is very critical for us since many youngsters, including my friends, are planning to leave since they don’t see many opportunities here to lead a decent life,” he said.

Along with prominent candidates, independent President Ranil Wickremesinghe, Samagi Jana Balawegaya leader and opposition leader Sajith Premadasa, candidate of National Peoples’ Power, Anura Kumara Dissanayake, another independent candidate known as the common Tamil candidate P. Ariyanenthiran is gaining traction.

Unlike previous presidential elections where Tamil people supported a leading candidate, Tamil nationalist parties and civil society outfits fielded a common candidate for the Tamil cause, a symbolic protest to register their disappointment over the failure of past governments to address the ethnic conflict in the country.

Driver Sriskantharaja Sivakumar, 42, from Jaffna town said, like many others in his village, he is confident of a Premadasa presidency.

“Among all the candidates, my support is for Sajith Premadasa. Because, like his father, the late Mr Premadasa, he also initiated many housing projects in the province for war-affected people. Other candidates did nothing for the Tamil people in terms of development,” Mr Sivakumar told the Sunday Times.

With mixed signals coming from the main Tamil constituent party of Ilankai Thamil Arasu Katchchi (ITAK) on the polls despite the party central committee decision to support Mr Premadasa, its supporters, backed by MPs launched pocket meetings canvassing votes for the Tamil common candidate.

ITAK leader, parliamentarian, S. Shritharan organised grassroots campaigns and pocket meetings supporting a Tamil common candidacy in Kilinochchi early this week mobilising a large crowd.

ITAK General Secretary Dr. P. Sathiyalingam wrote to all the regional wings of ITAK in eight districts reiterating the party’s decision to support Mr Premadasa this week and request Mr Ariyanenthiran, a member of the party central committee, to leave the presidential race.

The party is to meet this week to discuss electioneering and canvassing in support of Mr Premadasa despite internal disagreements among the MPs and senior leaders.

On Friday, a massive election canvassing meeting was organised in Mannar Bus stand premises where P. Ariyanenthiran urged voters to only vote for his symbol, the conch shell, as many activists canvassed to extend the preferential votes for other candidates. Leader of Tamil Eelam Liberation Organization (TELO) and ITAK MP Selvam Adaikalanathan organised the meeting.

Meanwhile, several low-key, grassroots campaigns and pocket meetings were launched this week in support of Tamil common candidate Mr Ariyanenthiran. Earlier this week, Mr Ariyanenthiran was in Batticaloa, his hometown, where he was given a grand welcome by locals and civil society groups.

Speaking in Jaffna yesterday, Mr Ariyanenthiran observed that there has been significant support for him in recent weeks as he travelled across the two provinces.

Claiming that he is merely a ‘symbol’ for the Tamil cause, Mr Ariyanenthiran said that Tamil people are forced to take up this position which he believes is a new path in the Tamil cause to let their voices be heard.

The Tamil National Peoples’ Front (TNPF) also carried out low-key campaigns urging Tamil people to boycott the polls saying all presidential candidates vowed to protect the unitary nature of the state and not under a federal-based structure.

TNPF parliamentarian S. Kajendran who was distributing leaflets along with his supporters in Kilinochchi on Friday was questioned by police and later released for canvassing for a boycott⍐.

Amidst concerns, IMF team coming two weeks after polls

 Amidst concerns, IMF team coming two weeks after polls

Sunday, September 15, 2024 Sunday Times

An International Monetary Fund (IMF) delegation will arrive in Sri Lanka two weeks after the presidential election is concluded to make an assessment for a new staff-level agreement and review the ongoing programme.

They will meet with the elected president and discuss any changes that the administration hopes to propose to the ongoing IMF programme, Finance Ministry officials said.

“One of their main concerns is the country’s political stability, without which the economy will not be stable. They have some concerns regarding the interim period between the conclusion of the presidential election and the general election,” a senior official said.

Treasury officials have also done an assessment on various scenarios to expect after the conclusion of the presidential election. They have studied in detail the manifestos of the main candidates and summarised how political developments could create an unfavourable situation for the continuity of the IMF programme.

Among these are concerns that the increase in the budget deficit of more than 11 percent of GDP due to tax cuts and excessive expenditures would pose difficulties in the preparation of the budget in line with the agreements with the IMF under the Extended Fund Facility (EFF), the Treasury officials said.

The assessment says that a situation created where there is a substantial primary deficit from 3% to 4% of GDP could be a serious violation of the IMF programme.

The assessment also voices concern over disruption to the ongoing agreements reached with external creditors under the debt restructuring process as well as fiscal imbalances that could have direct and indirect implications on the currency as well⍐.

Parliament: NPP concerned of dissolution

 Parliament: NPP concerned of dissolution

• NPP lawyers cite need for ‘peaceful power transition’

The Morning 16 Sep 2024 | BY Sahan Tennekoon

The Janatha Vimukthi Peramuna (JVP)-led National People's Power (NPP) expressed concern over a potential dissolution of Parliament by the President before the announcement of the Presidential Election results.

Speaking at a press conference yesterday (15), NPP Lawyers' Collective member President's Counsel Upul Kumarapperuma argued that if the President dissolves Parliament on 21 September, before the election results are announced, it would negatively impact the country. He made these remarks in response to a question posed regarding the allegations made by certain parties that the President is to dissolve the Parliament on the Election night.

He stressed the importance of a peaceful power transition without unnecessary chaos. "Although the Constitution grants the President the power to dissolve Parliament in such a situation, doing so amidst the election would create further issues," Kumarapperuma remarked. He highlighted that while the President does have constitutional authority, such an action could be detrimental to the citizens and exacerbate the country's problems.

Kumarapperuma also stated: "The President is granted power by the Constitution to act in such a manner, but if he proceeds with dissolving Parliament during the election period, it would be the worst thing for the country” stressing the importance of maintaining stability during the transition of power.

In contrast, Education Minister Dr. Susil Premajayntha, speaking at a rally recently, noted that if President Ranil Wickremesinghe is re-elected, he would only dissolve Parliament after ensuring the approval of benefits for the people and the passage of crucial legislation.

However, during an election rally held in June, senior NPP officials claimed that if they are victorious, they will dissolve the Parliament on the night they win⍐.