Lagu Shop, Author at Sunera Foundation

Sri Lanka Government Launches Domestic Debt Restructuring Plan

December 4, 2022 Lagu Shop

Sri Lanka has unveiled a domestic debt restructuring plan to tackle its economic crisis. The strategy aims to meet IMF bailout conditions and restore stability. The goal is to reduce overall debt to 95% of GDP by 2032.

Government Launches Domestic Debt Restructuring Plan

Sri Lanka is implementing major economic reforms as part of the IMF program. The plan includes a 30% haircut for local dollar-denominated bonds. These bonds will have a six-year maturity at 4% interest.

Bilateral dollar creditors have a different option. They can choose no principal haircut with a 15-year maturity. This option includes a nine-year grace period at 1.5% interest.

The restructuring also covers local currency bonds held by superannuation funds. These will be swapped for longer maturity bonds with 9% interest. CBSL-held Treasury bills will become bonds maturing between 2029-2038.

Sri Lanka’s economy faces severe challenges. The country’s GDP shrank by 7.8% in 2022 and 11.5% in Q1 2023. Real wages fell by 30-50% in 2022. Nearly 43% of children under five suffer from malnutrition.

The government aims to finalize debt restructuring talks by September. This aligns with the first review of its IMF program. The goal is to address pressing issues and pave the way for economic recovery.

Overview of Sri Lanka’s Domestic Debt Restructuring Plan

Sri Lanka’s Central Bank has unveiled a new debt restructuring strategy. This plan aims to restore economic stability and meet IMF bailout conditions. It’s a vital step towards debt sustainability and improved fiscal policy.

Sri Lanka debt restructuring plan

The plan covers part of Sri Lanka’s $42bn domestic debt. It’s crucial for reaching the IMF’s target of reducing overall debt to 95% of GDP by 2032. Local currency bonds will be exchanged for longer-term bonds with 9% interest.

Impact on Retirement Funds

Sri Lanka’s retirement funds, worth Rs 4,354 billion, are greatly affected by this plan. The real value of these funds dropped by over 40% in 2022. This was due to currency depreciation and price increases.

Retirement Fund	Total Asset Value (Rs billion)	Accounts (millions)
Employees’ Provident Fund (EPF)	3,919	19.2
Other Retirement Funds	435	–
Total	4,354	–

The debt restructuring could cause retirement funds to lose 29% of their value over 10 years. By 2038, they might lose 47% of their value. These funds’ value is expected to drop from 17.7% to 9.4% of GDP.

Importance for External Debt Renegotiations

The success of this plan is vital for Sri Lanka’s $36bn external debt talks. This includes $24bn held by bondholders and creditors like China, Japan, and India. By showing commitment to reforms, Sri Lanka can improve its chances for favorable external debt terms.

Government Launches Domestic Debt Restructuring Plan

Sri Lanka’s government has unveiled a domestic debt restructuring plan to address the country’s economic crisis. The plan targets $42.1 billion of Sri Lanka’s $83 billion total debt. It’s supported by 122 lawmakers in the 225-member parliament.

This plan is part of the conditions for the IMF bailout package. It aims to tackle the domestic portion of Sri Lanka’s debt.

Options for Holders of Locally Issued Dollar-Denominated Bonds

The restructuring plan offers three options for holders of locally issued dollar-denominated bonds. These bonds include Sri Lanka Development Bonds (SLDBs).

Option	Principal Haircut	Maturity	Interest Rate
1	30%	6 years	4%
2	–	15 years (9-year grace period)	1.5%
3	Exchange for local currency bonds	10 years	SLFR + 1%

Treatment of Local Currency Bonds Held by Superannuation Funds

Superannuation funds’ local currency bonds will be exchanged for longer maturity bonds. These new bonds will mature between 2027 and 2038 with a 9 percent interest rate.

Funds refusing to participate may face a 30 percent tax penalty. This applies to pension funds and other superannuation funds.

Exclusion of Treasury Bills and Bonds Held by Banking Sector

Central Bank governor Nandalal Weerasinghe proposed converting treasury bills into longer-maturity treasury bonds. However, the banking sector’s treasury bills and bonds are excluded from restructuring.

This exclusion considers the significant stress currently faced by the banking sector.

Importance of Domestic Debt Rework for Foreign Debt Renegotiations

The domestic debt restructuring is expected to boost foreign debt renegotiations. Sri Lanka aims to reduce its $36bn foreign debt by $17 billion through restructuring.

The government is engaging with foreign creditors like the Paris Club, India, and China. They plan to finalize debt restructuring talks by September.

This timeline aligns with the first review of Sri Lanka’s IMF programme. The IMF recently approved a nearly $3 billion bailout package for the country.

Conclusion

Sri Lanka’s domestic debt restructuring plan is a key step towards economic recovery. The Central Bank will present the framework to Parliament for approval. They aim to finalize the bond exchange of superannuated funds by July’s end.

The government declared a five-day holiday from June 29 to July 3. This move will help manage market volatility and allow for loss recognition from bond sales. The plan’s success is crucial for creditor negotiations and regaining financial stability.

The debt agreements will reduce the government’s annual fiscal requirement by over 13%. This reduction will occur between 2027-2032, keeping debt payments below 4.5% of GDP. The government plans to clear bilateral loan installments by 2028 and settle concessional loans by 2043.

The President has outlined a four-step plan to boost the economy. It focuses on securing credit, implementing fiscal discipline, and attracting foreign investment. The goal is to transform Sri Lanka into a developed economy by 2048.

The restructuring plan’s execution within two years shows remarkable progress. Moving from near-bankruptcy to positive outcomes is impressive by global standards. This plan will play a vital role in creating a stable, prosperous future for Sri Lanka.

Sri Lanka’s Netball Team Returns Home After Victory

December 2, 2022 Lagu Shop

Sri Lanka’s Netball Team Returns Home After Asian Championship Success with great pride. They came back as the strong runners-up of a thrilling tournament. Their skill and hard work at the Asian Netball Championship 2024 stood out.

The coach praised the team for their grit despite challenges. Their success shines as a beacon of hope for netball in Sri Lanka. Their journey back is not just about traveling. It marks a big achievement for the sport in the country. The nation’s joyous welcome highlights their proud moment in sports history. Read more about their journey on Sri Lanka’s sporting narrative.

Key Takeaways

Sri Lanka excels in netball, winning several championships and showing great talent.
The nation supports its athletes, showing how sports unite and celebrate Sri Lankan culture.
Even with economic and administrative challenges, Sri Lankan athletes keep competing with determination and pride.
The team’s victory and warm welcome home show potential for growth in netball and other sports.
Schools like Holy Family Convent, Kurunegala are key in developing young talent like netball star Hiruni.
With a focus on youth and global competitions, Sri Lanka aims to climb the ranks in world netball.

A Glimpse into Sri Lanka’s Journey at the Asian Netball Championship

Sri Lanka’s national team shined at the annual Asian Championships. Their remarkable performance has thrilled fans and boosted national pride. This competition draws the continent’s top teams. It’s a stage for fierce battles and the rise of new netball stars.

Undefeated Streak in the Group Stages

Sri Lanka kicked off with a strong win against the Philippines, scoring 73-42. This win began their string of victories. They went on to defeat Saudi Arabia, India, Japan, Malaysia, and the Maldives. Sri Lanka dominated each game, showing their strength and skill.

Decisive Wins Showcasing Dominance

Moving smoothly into the semi-finals, the team impressed everyone against Hong Kong. The score was 71-47. Every player played a vital role in this win. Their success in the semi-finals underscored their skill and earned them a top spot at the championships.

A Nail-Biting Final Against Singapore

The final match against Singapore was gripping. Both teams fought hard, displaying strategic plays and persistence. In the end, Singapore won by a small margin. Yet, Sri Lanka’s performance was strong throughout the tournament. Their strategy and gameplay were commendable in this important event.

Reflecting on these matches shows the need to promote human rights in sports. Fair treatment for all is crucial, as this analysis discusses. Sri Lanka’s journey offers valuable lessons for the nation’s sports future.

Sri Lanka’s Netball Team Returns Home After Asian Championship Success

The Sri Lankan national netball team came home to a huge welcome. They won the Asian Netball Championship, making everyone proud. Their win shows the country’s love for the sport and their amazing skills.

Nation’s Euphoria Over the Team’s Homecoming

Fans filled Colombo’s streets to celebrate the win. This big welcome shows the country’s pride. The team rode through the city on an open-top bus, shining like heroes.

Recognition of Athletic Excellence and National Pride

Their win boosts Sri Lanka’s sports reputation worldwide. Thanks to great planning and hard work, they’ve made their country proud. This win shows Sri Lanka’s commitment to excellence, helping both sports and the nation to grow. Sri Lanka’s investment in promoting excellence shines through.

The coach applauded the team’s amazing effort. Even though she’s leaving, her strategies and the team’s hard work set a high bar for future teams. They aim to keep this level of success going.

This victory has made netball even more special in Sri Lanka. It inspires young athletes, showing them what they can achieve. It’s a shining example for all, encouraging them to reach their dreams.

The Struggles Behind Sri Lanka’s Netball Triumphs

The Sri Lankan netball team’s success is shadowed by major issues. They fell in world rankings, from 14th in 2009 to 25th. This shows problems within the sport’s leadership. Despite winning the Asian Netball title four times, countries like Singapore, Malaysia, and Hong Kong are doing better. They’ve surpassed Sri Lanka in both rankings and facilities.

Head Coach P.D.N. Prasadi is committed beyond just tactics. She invests her own money and works hard to turn talent into winners. While cricket in Sri Lanka has seen massive improvements, netball is still struggling. By focusing on netball, it might become as big as cricket in the region.

It’s crucial to fix the problems with the nation’s netball federation, especially with the Asia Cup coming up. Sri Lanka needs a stable netball system to compete well again. The team’s past wins, despite difficulties, show their strong spirit. It’s a wake-up call for better support from the sports authorities.

Sri Lanka’s Economic Crisis Fuels Poverty & Malnutrition

November 15, 2022 Lagu Shop

The economic crisis in Sri Lanka has led to severe problems. It has caused more people to fall into poverty and struggle with not having enough food. Now, 25.6% of its people are facing hard times, which means over 2.5 million are living below the poverty line.

The country’s economy has gone down by -7.2% in 2022. This shows how big the financial problems are. With a new global poverty line set at $2.15 per day, more than 700 million people worldwide are very poor. Sri Lanka is part of this group, and its economic problems are making things worse. This situation also means more kids are not getting the nutrients they need, which is a big concern.

In these tough times, OMP Sri Lanka is working hard to keep everyone informed. They share the latest news and important updates. They aim to help everyone understand what’s going on and stay safe. OMP Sri Lanka is committed to helping the nation find a way to get better and find hope again.

Understanding the Link Between Economic Crisis and Poverty in Sri Lanka

The economic downturn in Sri Lanka has led to a major poverty surge and more socioeconomic instability. The education sector shows the crisis clearly. There, schools had to cancel exams because there’s no paper. This affected over 4.3 million students.

The numbers show how serious it is. In August 2024, the poverty line hit Rs. 16,152, up from Rs. 6,966 in 2019. The cost of living has skyrocketed. Now, about 74 percent of families can’t afford daily needs. This was the case in the second half of 2022. It shows the deep financial turmoil in the country.

In 2023, 25.9 percent of people were below the poverty line. This didn’t just happen. It’s due to bad economic policies and worldwide economic pressures. Moreover, food insecurity grew. By August and September 2023, 24 percent of families didn’t have secure food access. Over 10,000 young kids are dealing with severe malnutrition.

This financial instability won’t only affect us now. It will also harm Sri Lanka’s future. If we don’t act, the hardship and poverty will get worse. We need to find solutions fast to fix our economic and social issues.

Economic Crisis Leads to Increased Poverty and Malnutrition in Sri Lanka

Sri Lanka is experiencing its worst economic downturn since becoming independent. This crisis shows a clear link between economic struggles and societal problems. It has led to more extreme poverty, increased malnutrition, and food insecurity. These issues are urgent and need quick action.

Spike in Extreme Poverty Amidst Economic Downturn

The economic downturn in Sri Lanka has greatly increased poverty. The poverty rate jumped to 25.9% by 2023. This is a big increase from before. In cities, the poverty rate has tripled, hitting millions hard.

About four million Sri Lankans now live below the poverty line. This change is due to job losses and less income, especially in industries and services.

Rising Food Insecurity and Malnutrition Epidemic

With the financial crisis, more people can’t secure enough food. Over 60% of families in Sri Lanka have to cut back on food quality and quantity. Now, 6.3 million people are facing food insecurity.

Nearly one-third of kids under five are malnourished. 26.8% of school kids have become more wasted in just a year. Food inflation is nearly 94 percent, making malnutrition worse.

Socioeconomic Instability Worsens Humanitarian Crisis

The economic mess in Sri Lanka is making the humanitarian crisis worse. It’s deepening poverty and making it harder to get food and other basics. In response, the government is trying to help.

They’re changing cash transfer programs and updating social systems. These steps aim to help people now and make the country more resilient. They focus on including everyone, especially promoting gender equality and empowering women.

Indicator	2019	2022	2023
Poverty Rate (%)	13	25	25.9
Children Under 5 Malnourished (%)	–	7.4	9.2
Households Unable to Afford Food (%)	–	74	–
Food Inflation Rate (%)	–	94	–
Urban Poverty (%)	5	15	–
Job Losses (in millions)	–	0.5	–

Assessing the Human Impact of Sri Lanka’s Recession

The ripple effect of Sri Lanka’s recession goes beyond numbers. It touches the lives of its people every day. The lack of essentials and rising prices have hit hard. The World Bank reports a jump in poverty to 25% in 2022.

This number includes urban areas where poverty tripled to 15%. Thus, showing a big increase in economic hardship. With soaring poverty lines and food inflation over 90%, many can’t afford basic needs.

Shortage of Essentials and Accelerating Inflation Rates

The crisis has led to serious poverty and malnutrition. UNICEF’s 2023 report says about 2.8 million children and women need urgent food help. With living costs so high, many eat less protein, harming health and growth. The fuel crisis makes it worse, causing job losses and deep societal impacts.

Societal Consequences of an Economic Collapse

People are trying to cope with the tough times. Groups like People in Need and Habitat for Humanity help with cash. This helps families a bit in Sri Lanka’s central areas. But, the path to economic recovery is still long. Changing to organic fertilisers and seeing farm outputs drop has made things harder, showing the need for major changes.

Policy Decisions and Their Role in the Financial Turmoil

Bad policy decisions have added to Sri Lanka’s troubles. Experts and global finance groups say changes and new policies are needed for a recovery. The UN OCHA highlights the immediate crisis needs and the importance of stable, long-term plans. The government’s work with the IMF Extended Fund Facility is a start. Yet, to truly fix the economy, deeper changes are essential.

FAO and USAID Partner to Revitalize Sri Lanka’s Agriculture

November 4, 2022 Lagu Shop

The Food and Agriculture Organization (FAO) and USAID are teaming up with Sri Lanka’s Ministry of Agriculture. Their $9.2 million initiative aims to boost paddy productivity and diversify crops on marginal land. This collaboration will promote sustainable agricultural development programs in the country.

This partnership arrives at a critical time for Sri Lankan farming. The nation faces challenges after poor harvests in 2022 led to a 50% drop in production. The effort seeks to revive agriculture and support vulnerable farmers across the island.

FAO, with USAID’s support, has already made significant progress in helping Sri Lankan farmers. They provided over 58,700 metric tonnes of essential fertilizers to all paddy farmers within nine months.

The 2023 Yala paddy season sowing covered about 500,000 hectares. This impressive achievement accounts for 92% of the targeted area.

$9.2 Million Initiative to Enhance Paddy Productivity and Diversify Crops

FAO, USAID, and Sri Lanka’s Ministry of Agriculture have launched a $9.2 million initiative. It aims to boost paddy productivity and promote crop diversification in Sri Lanka. This four-year project will help 10,000 farmers in Hambanthota, Vauniya, Anuradhapura, and Kurunegala districts.

The initiative supports farmers in diversifying 1,250 hectares of paddy lands during the Yala season. It promotes sustainable farming practices and growing suitable cash crops. The project also encourages efficient water and fertilizer use on 5,000 acres of paddy.

Streamlining Supply Chains for Smallholder Farmer Support

A key goal is establishing streamlined supply chains for smallholder farmers. This ensures timely access to affordable supplies and machinery. The project aims to boost productivity and profitability in Sri Lanka’s agriculture sector.

The partnership addresses challenges like low labor productivity and the need for diversification. It promotes sustainable farming practices to increase agricultural output. The initiative also aims to boost export earnings and energize the rural economy.

Building on Previous US Support and Donations to Sri Lankan Farmers

The FAO and USAID partnership aims to revitalize Sri Lanka’s agriculture sector. This builds on the US’s vital support for Sri Lankan farmers during the recent economic crisis. In 2022, the US provided crucial fertilizer donations to help paddy farmers.

The US donated 36,000 metric tons of Triple Super Phosphate to Sri Lanka. They also provided 9,800 metric tons of urea during the economic crisis. These fertilizers went to over 1 million vulnerable paddy farmers for free.

Crucial Support for Vulnerable Paddy Farmers

FAO and the Ministry of Agriculture teamed up to distribute the donated fertilizers. They focused on reaching the most vulnerable paddy farmers in Sri Lanka. This effort helped farmers keep their jobs and ensure food security.

The new $9.2 million partnership strengthens US support for Sri Lankan farmers. It focuses on sustainable farming, crop diversity, and efficient resource use. The project aims to boost smallholder farmers’ resilience and profits.

FAO and USAID Partner to Revitalize Sri Lanka’s Agriculture Sector

The FAO and USAID have teamed up with Sri Lanka’s Ministry of Agriculture. Their $9.2 million project aims to boost the country’s farming sector. This initiative will help 10,000 farmers in four districts: Hambanthota, Vauniya, Anuradhapura, and Kurunegala.

The four-year program will improve paddy productivity and crop variety. Farmers will grow cash crops on 1,250 hectares during the Yala season. The project will also promote efficient use of water and fertilizer on 5,000 acres of paddy.

FAO Representative Vimlendra Sharan highlighted the partnership’s importance. He said it combines resources and expertise to build resilience in agriculture. FAO and USAID will work closely with Sri Lanka’s government to ensure success.

This project builds on previous US support for Sri Lankan farmers. In 2022, the US donated fertilizer to over 1 million paddy farmers. The current initiative aims to strengthen agriculture and improve farmers’ lives.

Sri Lanka Arrests 3 Locals Over Plot Against Israel Tourists

October 24, 2022 Lagu Shop

Sri Lanka has arrested three locals for planning an attack on Israeli tourists. This action comes from intelligence indicating a threat from October 19 to 23. Vijitha Herath, the country’s security minister, said the suspects were detained under the strict Prevention of Terrorism Act. This shows Sri Lanka’s commitment to keeping the nation safe.

Sri Lanka says 3 locals were arrested over a possible attack on Israel tourists

Before these arrests, there was a big increase in military and police in the area. Around 500 officers were placed around Arugam Bay, a top tourist spot in Sri Lanka. The country is still healing from the 2019 Easter Sunday attacks which hurt its tourism industry badly.

Despite anti-Israel protests by some local Muslims and boycott calls on social media, Sri Lanka promises to protect all tourists. They have heightened security, especially in southeastern resorts. This is part of their plan to show Sri Lanka is safe and open to all visitors from around the world.

Key Takeaways

Sri Lanka’s response to the proposed attack on Israeli tourists, ensuring vigilant counter-terrorism operations.
Empowered security protocols in tourist locations, safeguarding guests during the peak tourism season.
Strategic cooperation between local and international intelligence agencies resulted in the timely arrests of the suspects.
Authorities’ initiative to set up a tourist hotline for reporting suspicious activities, indicating proactive crisis management.
Dedicated diplomatic dialogues to lift travel advisories reflecting Sri Lanka’s commitment to transparency and security amidst global scrutiny.

Background and Details of the Arrest in Arugam Bay

Arugam Bay, known for its beauty, has faced a tough situation. Three Sri Lankans were arrested for plotting against Israeli tourists. This reveals the ongoing risk of terrorism from global conflicts and extremist groups.

The OMP Sri Lanka says the suspects were linked to the conflicts in Gaza and Lebanon. The arrests happened thanks to information shared between countries. This shows how vital international collaboration is in preventing attacks by radical groups.

Information on the Suspects and Connection to International Conflicts

One suspect had previously fought in Iraq, showing the global aspect of this threat. They targeted the Chabad House in Arugam Bay, aiming to stir religious and ethnic conflict. The quick action of international and local forces points to strong teamwork against terrorism.

Sri Lanka’s Commitment to Tourist Safety Post-Economic Crisis

After the incident, Sri Lanka increased patrols and security checks in tourist areas. They are dedicated to keeping their tourism safe, vital for their economy. They even started a hotline for tourists to report any suspicious activities.

Impact on Sri Lanka’s Tourism and International Relations

The attempted attack has challenged Sri Lanka’s reputation as a safe place for tourists. Yet, their quick response has helped manage the impact. International advice acknowledges their actions, maintaining trust among travelers and partners. It’s crucial to keep up security cooperation to support Sri Lanka’s tourism and economy.

This incident underlines the need for ongoing global cooperation to tackle security risks. Protecting economic interests and people depends on stopping extremist threats. Sri Lanka’s approach strengthens its security and helps global peace and stability efforts.

Sri Lanka says 3 locals were arrested over a possible attack on Israel tourists

Sri Lanka has taken action by arresting three people. This was due to fears of an attack on Israeli tourists in Arugam Bay. The government is trying hard to manage crises and keep tourists safe. This is especially important with current global travel warnings.

Tension Between Local Muslim Community and Israeli Tourists

Arugam Bay has a history of conflicts. Lately, geopolitical issues have heightened tensions. This prompted the authorities to work more with other countries in stopping terrorism. Even though Israeli tourists make up a small 1.5% of visits since 2024, they are very important. They help the economy a lot, especially in places like Arugam Bay.

Intelligence Tips and Proactive Security Measures by Sri Lanka Police

The Sri Lankan police have increased their efforts for safety. They have more soldiers and police patrolling areas where tourists visit. This is because they received strong tips. About 500 security people are now working hard to manage crises. They recently caught three locals because of this effort.

International Warnings and Evacuations Following Credible Threats

Travel warnings were given by the U.S. Embassy and Israel’s security council. This situation led to fewer Israeli tourists in Arugam Bay. Some left due to these warnings. A few stayed by the time the arrests happened. Sri Lanka is really focused on keeping tourists safe. This shows their commitment to working together on security with other countries. You can read more about it here.