SJB MP Harshana Rajakaruna said in Parliament yesterday that all SJB MPs will resign from the Parliamentary Select Committee (PSC) appointed to investigate the country’s bankruptcy, the Daily News reported. The MP said in a special statement in Parliament that the Speaker will be informed in writing in this regard. He said that it is very unfair to appoint the Secretary General of the same party that bankrupted the country as the chairman of the Select Committee while the Opposition has requested the chairmanship.
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Opposition leader Sajith Premadasa yesterday announced the decision made by the Opposition to establish a committee, separate from the one formed in Parliament, to delve into the underlying causes that contributed to Sri Lanka’s state of bankruptcy, the Daily FT reported. Premadasa expressed his belief that the committee appointed by the government to investigate the country’s bankruptcy is a calculated maneuver aimed at fulfilling specific political objectives rather than impartially addressing the issue.
Sri Lanka’s Parliament has said that it has appointed a committee to probe into the country’s financial bankruptcy and submit recommendations on the matter, The Siasat Daily reported. Speaker Mahinda Yapa Abeywardena announced in Parliament on Thursday that the committee would be chaired by lawmaker of Sri Lanka Podujana Peramuna (SLPP) Sagara Kariyawasam, Xinhua news agency reported. Abeywardena said there are many allegations about the cause of Sri Lanka’s bankruptcy in 2022, and the committee is entrusted with investigating these allegations.
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Sri Lanka’s President Ranil Wickremesinghe has expressed hope that the country will be able to shed its bankruptcy status by September and boost its economy, the Economic Times of India reported. Wickremesinghe’s remark came in the backdrop of Lanka's parliament approving a domestic debt restructuring plan on Saturday that is crucial to continue a $2.9 billion bailout from the International Monetary Fund (IMF). The plan was passed with a majority of 122 votes in the 225-member parliament.
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Sri Lanka’s Cabinet on Wednesday approved a program to restructure the country's staggering domestic debt as the island nation struggles to emerge from an economic crisis that has engulfed it since last year, the Associated Press reported. The domestic debt restructuring is required as part of a bailout package obtained from the International Monterey Fund, under which nearly $3 billion in government budgetary support will be disbursed in stages. Sri Lanka’s total debt exceeds $83 billion, of which $41.5 billion is foreign and $42.1 billion is domestic.
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The Sri Lankan Cabinet has approved a joint proposal presented by the President and the Minister of Justice, Prison Affairs, and Constitutional Reform to authorize the Law Commission to prepare a preliminary draft of the insolvency laws within a period of three (03) months after consultation with the relevant parties, LankaBusinessOnline.com reported. Reforms in the insolvency laws for unincorporated small businesses and consumer insolvency are contained in the Insolvency Ordinance 1853, and provisions relating to company insolvency are contained in the Companies Act No.
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China will continue to provide assistance "within its capabilities" for Sri Lanka's economic and social development, China Foreign Minister Qin Gang said on Sunday, Reuters reported. Qin Gang, in a meeting with Sri Lanka counterpart Ali Sabry in Beijing, said China is willing to consolidate and expand the strategic cooperative partnership between the two countries, according to a statement on the foreign ministry's website.
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The Central Bank of Sri Lanka reduced its interest rates Thursday for the first time since the island nation declared bankruptcy, after stern fiscal controls, improved foreign currency income and help from an International Monetary Fund program resulted in inflation slowing faster than expected, the Associated Press reported. The Central Bank said in a statement that the lending and deposit interest rates were reduced by 250 basis points to 14% and 13%.
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Sri Lankan authorities formally presented on Tuesday a request for debt treatment in the first meeting of the official bilateral creditors committee, the Paris Club said in a statement, Reuters reported. The committee, co-chaired by India, Japan and France, consists of 17 members and includes Paris Club creditors as well as other official bilateral creditors.
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Sri Lanka's economy is expected to shrink by 2% in 2023, its central bank said in an annual report on Thursday, as the country struggled to emerge from its worst financial crisis in decades, Reuters reported. The central bank projected Sri Lanka's economy would grow by 3.3% in 2024, according to the report. The economy shrank by 7.8% in 2022, in a year dominated by deep political instability, soaring inflation and steep currency depreciation as Sri Lanka struggled with a financial crisis triggered by record low foreign exchange reserves.
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