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☆ Marxist-leaning president takes power in Sri Lanka, a country long led by dynasties
▼ + stars: | 2024-09-23 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms | ) www.nbcnews.com time to read: +2 min

COLOMBO — Sri Lanka’s leftist leader Anura Kumara Dissanayake took office as president on Monday, promising change in the island nation long led by powerful political families which is emerging from its worst economic crisis in more than seven decades. Supporters of Sri Lanka's newly elected President Anura Kumara Dissanayaka, celebrate in Colombo. Before Monday’s swearing-in, Prime Minister Dinesh Gunawardena resigned to make way for the new prime minister and his cabinet. Sri Lanka’s sovereign dollar bonds shed 2.88 to 3.28 cents on the dollar in early trade on Monday to bid between 49.14 and 49.77 cents. Sri Lanka’s close neighbors India, Pakistan, and the Maldives also congratulated Dissanayake on his win, along with China, the largest bilateral creditor.

Persons: Anura Kumara Dissanayake, Lankans, “, ” Dissanayake, Sri Lanka's, Anura Kumara Dissanayaka, Ishara, Ranil Wickremesinghe, ”, beautician, Dinesh Gunawardena, Gotabaya Rajapaksa, Dissanayake, Sri Lanka’s Organizations: Sri, Kodikara, Getty, International Monetary Fund Locations: COLOMBO, Colombo, AFP, India, Pakistan, Maldives, China

☆ Marxist lawmaker leads the vote count in Sri Lanka's presidential election
▼ + stars: | 2024-09-22 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms | ) www.nbcnews.com time to read: +4 min

This is Sri Lanka’s first election since the Indian Ocean nation’s economy buckled in 2022 under a severe foreign exchange shortage, leaving it unable to pay for imports of essentials including fuel, medicine and cooking gas. Marxist-leaning Anura Kumara Dissanayake leaves a polling station after casting his vote in Sri Lanka's capital Colombo on Saturday. Grinding poverty for millionsButtressed by the IMF deal, Sri Lanka’s economy has posted a tentative recovery. The younger Premadasa polled 42% of the votes in 2019 to finish second, behind Rajapaksa, in the last presidential election. Support from farming communities in north and central Sri Lanka helped him close the gap on Dissanayake as counting progressed.

Persons: Kumara Dissanayake, Sajith Premadasa, Sri Lanka’s, Ranil Wickremesinghe, Dissanayake, Premadasa, Lanka’s, Gotabaya Rajapaksa, ”, Pradeep Peiris, ” Dissanayake, Eranga, Ranasinghe Premadasa, Rajapaksa Organizations: Sri, Sunday, University of Colombo, Monetary Fund, Marxist, IMF, National People’s Power, JVP Locations: “, Sri Lanka's, Colombo, Sri, Sri Lankans, Premadasa’s, Sri Lanka

☆ Sri Lankans elect Marxist-leaning Dissanayake as president to fix economy
▼ + stars: | 2024-09-22 | by ( ) edition.cnn.com time to read: +5 min

For me this is not a position, it is a responsibility,” Dissanayake told reporters after his victory which was confirmed after a second tally of votes. Dissanayake polled 5.6 million or 42.3% of the votes, a massive boost to the 3% he managed in the last presidential election in 2019. Anura Kumara Dissanayake of the National People's Power party leaves a polling station after casting his vote in Colombo, Sri Lanka, on Sept. 21, 2024. Grinding poverty for millionsButtressed by the IMF deal, Sri Lanka’s economy has managed a tentative recovery. Dissanayake ran as a candidate for the National People’s Power alliance, which includes his Marxist-leaning Janatha Vimukthi Peremuna party.

Persons: Kumara Dissanayake, Ranil Wickremesinghe, Sajith Premadasa, “, ” Dissanayake, “ Mr, ” Wickremesinghe, Dissanayake, Premadasa, Eranga, Gotabaya Rajapaksa, ”, Pradeep Peiris, Dissanayake’s, Janak Dias Organizations: COLOMBO Reuters, Marxist, National People's, Monetary Fund, University of Colombo, IMF, National People’s Power, JVP Locations: Lankans, Sri Lanka, Colombo, “, Sri

☆ Sri Lanka's Marxist-leaning Dissanayake in early lead to become president
▼ + stars: | 2024-09-22 | by ( ) www.cnbc.com time to read: +3 min

A man waves Sri Lanka's national flag after climbing a tower near presidential secretariat in Colombo on July 11, 2022, after it was overrun by anti-government protestors. (Photo by ARUN SANKAR/AFP via Getty Images)Sri Lanka's Marxist-leaning leader, Anura Kumara Dissanayake, grabbed a commanding early lead on Sunday in his bid to become the next president of the debt-ridden country seeking to elect a leader to bolster its fragile economic recovery. Dissanayake won about 53% of a million votes counted so far in the election, Sri Lanka's Election Commission data showed. "Though I heavily campaigned for President Ranil Wickremasinghe, the people of Sri Lanka have made their decision, and I fully respect their mandate for Anura Kumara Dissanayake." This was Sri Lanka's first election since the economy buckled in 2022 under a severe foreign exchange shortage, leaving the country unable to pay for imports of essentials including fuel, medicine and cooking gas.

Persons: ARUN SANKAR, Anura Kumara Dissanayake, Dissanayake, Sajith Premadasa, Ranil Wickremesinghe, Peremuna, Ali Sabry, Ranil Wickremasinghe, Kumara Dissanayake, Lanka's, Gotabaya Rajapaksa Organizations: Getty Images, Marxist, Sri, National, Power, JVP, International Monetary Fund, IMF Locations: Colombo, Sri Lanka's, Saturday's, Sri Lanka

☆ Heavily indebted Sri Lanka votes in election to decide economic future
▼ + stars: | 2024-09-21 | by ( ) www.cnbc.com time to read: +3 min

A man waves Sri Lanka's national flag after climbing a tower near presidential secretariat in Colombo on July 11, 2022, after it was overrun by anti-government protestors. Rathnayake, the head of Sri Lanka's election commission, told Reuters. Buttressed by a $2.9 billion bailout programme from the International Monetary Fund, Sri Lanka's economy has posted a tentative recovery but the high cost of living remains a core issue for many voters. "Use your vote wisely so Sri Lanka can continue its recovery and move forward towards a sustainable and prosperous future." Sri Lanka's ranked voting system allows voters to cast three preferential votes for their chosen candidates.

Persons: ARUN SANKAR, Ranil Wickremesinghe, Sajith Premadasa, Kumara Dissanayake, Sri, Gotabaya Rajapaksa, Ali Sabry, Lanka's Organizations: Getty, Citizens, R.M.L, Reuters, International Monetary Fund, IMF Locations: Colombo, Lanka's, Sri Lanka's, Sri, Sri Lanka

☆ Sri Lanka passes controversial bill to regulate online content
▼ + stars: | 2024-01-25 | by ( Rhea Mogul | Morayo Ogunbayo | ) edition.cnn.com time to read: +3 min

CNN —Sri Lanka’s lawmakers passed a bill on Wednesday regulating internet use among its citizens, in a move that has sparked fears among rights groups of a free speech crackdown. “Sri Lanka is still reeling from an economic crisis partly caused by misgovernment and failures of accountability,” said Human Rights Watch Deputy Asia Director Meenakshi Ganguly in a statement Tuesday. Then-President Gotabaya Rajapaksa was forced to flee the country after angry protesters, who blamed him for the financial situation, stormed his residence. But rights groups have accused him of cracking down on dissent and silencing protesters. “Sri Lanka’s repressive laws have facilitated widespread human rights violations for decades and contributed to economic and political crises,” said Ganguly.

Persons: ”, Lanka’s, Meenakshi Ganguly, “, Wickremesinghe, Jeff Paine, Gotabaya Rajapaksa, Rajapaksa, Ganguly Organizations: CNN, Safety, Rights Watch, Asia Internet Coalition, United Nations Human Rights Locations: Lanka’s, Sri Lanka, Lankans

COLOMBO, Sri Lanka (AP) — Sri Lanka said Wednesday that it has reached an agreement in principle with a group of creditors including India and Japan on debt restructuring, a crucial move toward unlocking a second instalment of a $2.9 billion bailout package from the International Monetary Fund. Sri Lanka declared bankruptcy in April 2022 with more than $83 billion in debt — more than half of it to foreign creditors. Political Cartoons View All 1270 ImagesSri Lanka needed financial assurances from its bilateral creditors in order to receive the second bailout installment. The ministry said the debt treatment terms will be further detailed and formalized in a memorandum of understanding between Sri Lanka and the creditor committee, which is co-chaired by India, Japan and France and includes 17 countries. ___This version corrects the name of the group in the agreement to the Official Creditor Committee, not Official Credit Committee.

Persons: Gotabaya Rajapaksa Organizations: International Monetary Fund, country's Finance Ministry, IMF, Sri, Sri Lanka’s IMF, Credit Locations: COLOMBO, Sri Lanka, India, Japan, Sri Lanka’s, Sri, Lanka, France

☆ China Is Lending Billions to Countries in Financial Trouble
▼ + stars: | 2023-11-06 | by ( Keith Bradsher | More About Keith Bradsher | ) www.nytimes.com time to read: +1 min

China’s early, rapid expansion of the Belt and Road Initiative alarmed U.S. officials, who saw the program as eroding American influence. The Trump administration and Congress merged and expanded two agencies in 2018 to create the development finance corporation. Between 2014 and 2017, AidData found, China was providing nearly three times as much development financing as the United States. But by 2021, China was outspending the United States by only 30 percent. (The American loan for up to $553 million would be for expansion of the busy port in Colombo, Sri Lanka’s capital and main city.)

Persons: Trump, China’s, AidData, Mahinda Rajapaksa Organizations: United States International Development Finance Corporation, Initiative Locations: Greece, Sri Lanka, China, United States, Hambantota, Colombo, Sri

COLOMBO, Sri Lanka (AP) — Sri Lanka’s ruling coalition on Friday defeated a no-confidence motion against the country's health minister who has been accused of allegedly failing to secure enough essential drugs and laboratory equipment that some say resulted in preventable deaths in hospitals. The motion was initiated by opposition lawmakers who claimed Health Minister Keheliya Rambukwella's actions had ruined the health sector. Sri Lanka’s total debt has exceeded $83 billion, of which $41.5 billion is foreign. Sri Lanka has secured a $3 billion bailout package from the International Monetary Fund and is taking steps to restructure its domestic and foreign debts. Amid the crisis, thousands of Sri Lanka are leaving the country for better paying jobs abroad, including about 1,500 doctors who have left over the last year, according to a union.

Persons: Lanka’s, Keheliya, Rambukwella, Gotabaya Rajapaksa Organizations: Friday, Health Ministry, Sri, International Monetary Fund Locations: COLOMBO, Sri Lanka

COLOMBO, Sri Lanka (AP) — Sri Lankan lawmakers began a debate on the fate of country's health minister on Wednesday, seeking to remove him over his alleged failure to secure enough essential drugs and laboratory equipment that some say resulted in preventable deaths in hospitals. Their relatives, trade unions, activists and opposition lawmakers alleged that low-quality drugs had led to poor patient care. Sri Lanka’s total debt has exceeded $83 billion, of which $41.5 billion is foreign. Sri Lanka has secured a $3 billion bailout package from the International Monetary Fund and is taking steps to restructure its domestic and foreign debts. Amid the crisis, thousands of Sri Lanka are leaving the country for better paying jobs abroad.

Persons: Keheliya Rambukwella, ” Rambukwella, Gotabaya Rajapaksa Organizations: Health, Health Ministry, Sri, International Monetary Fund Locations: COLOMBO, Sri Lanka, Sri Lankan

The Central Bank of Sri Lanka (CBSL) cut its standing deposit facility rate and standing lending facility rate to 11% and 12%, respectively, from 13% and 14% previously. This follows a 250 bps cut at its last policy meeting in June. The central bank raised rates by a record 950 bps last year to tame inflation and by 100 bps on March 3. Sri Lanka's key inflation index peaked at 70% year-on-year in September and has come down gradually. "Now that they are bringing down rates fast, they will issue very long-term bonds and reduce borrowing costs for the government.

Persons: Gotabaya Rajapaksa, Ranil Wickremesinghe, CBSL, Sri, Dimantha Mathew, Uditha Jayasinghe, Swati Bhat, Sudipto Ganguly, Raju Gopalakrishnan Organizations: International Monetary Fund, Central Bank of Sri, First, Thomson Locations: COLOMBO, Lanka's, Central Bank of Sri Lanka

The Central Bank of Sri Lanka (CBSL) cut its standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) to 11% and 12%, respectively, from 13% and 14% previously, in line with expectations. The 200 basis point cut follows a 250 bps cut at its last policy meeting in June. The central bank raised rates by a record 950 bps last year to tame inflation and by 100 bps on March 3. Sri Lanka's key inflation index peaked at 70% year-on-year in September and has come down gradually. Analysts expect more rate cuts in coming months to aid economic recovery and reduce borrowing costs for corporates and the government.

Persons: Gotabaya Rajapaksa, Ranil Wickremesinghe, CBSL, Sri, Dimantha Mathew, Thilina Panduwawala, Sudipto Ganguly, Raju Gopalakrishnan Organizations: International Monetary Fund, Central Bank of Sri, First, corporates, Frontier Research, Thomson Locations: COLOMBO, Sri Lanka, Central Bank of Sri Lanka

☆ Sri Lanka targets 30% haircut for international, domestic dollar bonds
▼ + stars: | 2023-06-29 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +5 min

The government also aims to rework its foreign debt with bondholders and bilateral creditors including China, Japan and India. Under the domestic debt revamp, holders of locally issued dollar-denominated bonds, such as Sri Lanka Development Bonds (SLDBs), will be given three options, Weerasinghe said. "We are asking foreign debt holders for a 30% haircut but that is still under discussion," Weerasinghe said. "Sri Lanka is under enormous pressure to restructure as quickly as possible and get its economy back on track, they need funds to import a lot of goods to reinvigorate their key tourism industry," Lutz Roehmeyer, fund manager at Capitulum Asset Management, who holds Sri Lanka international bonds. "A 30% haircut is too little given the shape the country's economy is in."

Persons: Nandalal Weerasinghe, Gotabaya Rajapaksa, Weerasinghe, Lutz Roehmeyer, Uditha Jayasinghe, Rosario, Karin Strohecker, Shilpa Jamkhandikar, Himani Sarkar, Kim Coghill, Simon Cameron, Moore, Toby Chopra Organizations: Saturday International, International Monetary Fund, IMF, Sri Lanka Development, Capitulum Asset Management, Sri Lanka, World Bank, Sri, Jorgelina, Thomson Locations: COLOMBO, Sri Lanka, Britain, China, Japan, India, United States

☆ Wickremesinghe delivers IMF deal for Sri Lanka despite public mistrust
▼ + stars: | 2023-03-21 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +5 min

Only 4% were satisfied with the way things were going in Sri Lanka, down from 7% in October but higher than 2% in June. The Paris Club of creditors, which includes Japan, earlier this year gave financing assurances to support the IMF deal. A Japan-funded $1.8 billion light-railway project, which was suspended in 2019, is among infrastructure projects that Sri Lanka is now trying to restart. But Sri Lanka still needs to renegotiate its debt, a potentially drawn-out process where Wickremesinghe, who is also the finance minister, will have to deal with demands from China, India and other creditors. A crisis-weary public may still have to absorb years of continuing hardship as Sri Lanka tries to fix its economy during the four-year IMF programme, warned Jayadeva Uyangoda, a senior political analyst.

☆ IMF is bullish Sri Lanka's crisis-stricken economy will recover as country gets bailout
▼ + stars: | 2023-03-21 | by ( Sumathi Bala | ) www.cnbc.com time to read: +4 min

We expect a contraction around 8% in 2022, a 3% contraction this year before the economy picks up next year." watch nowAs a result, Sri Lanka's debt levels have become unsustainable and inflation remains elevated, he added. "There are plenty of examples of IMF programs restoring stability, though these often come at the cost of painful austerity." Analysts have also argued Sri Lanka needs institutional reforms in order to achieve long-term debt sustainability. Critical reforms"Ambitious revenue-based fiscal consolidation is necessary for restoring fiscal and debt sustainability" in Sri Lanka, said Kistalina Georgieva, IMF's managing director.

☆ Sri Lanka needs institutional changes for long-term debt sustainability, says professor
▼ + stars: | 2023-03-10 | by ( Sumathi Bala | ) www.cnbc.com time to read: +4 min

Buddhika Weerasinghe | Bloomberg | Getty ImagesSri Lanka needs institutional reforms in order to achieve long-term debt sustainability, said Steve Hanke, who played a key role in establishing new currency regimes in emerging markets like Argentina and Montenegro. "In fact, most of the personalities involved in Sri Lanka at the high level are exactly the same as they've been for years. In September, the IMF outlined a series of steps that it wanted Sri Lanka's government to implement prior to loan approval, which included major tax reforms. "Debt relief from Sri Lanka's creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps," the fund said at the time. "The Secretary welcomed Sri Lanka's commitments to transparency and comparable treatment for all bilateral official and private creditors."

☆ Sri Lanka marks independence anniversary amid economic woes
▼ + stars: | 2023-02-04 | by ( ) www.cnbc.com time to read: +3 min

Sri Lanka's President Ranil Wickremesinghe attends the the country's 75th Independence Day celebrations at Galle Face Green in Colombo, Sri Lanka February 4, 2023. COLOMBO, Sri Lanka (AP) — Sri Lanka marked its 75th independence anniversary on Saturday as a bankrupt nation, with many citizens angry, anxious and in no mood to celebrate. Cyril Gamini called this year's ceremony commemorating independence from British rule a "crime and waste" at a time when the country is experiencing such economic hardship. Sri Lanka is effectively bankrupt and has suspended repayment of nearly $7 billion in foreign debt due this year pending the outcome of talks with the International Monetary Fund. A group of activists began a silent protest on Friday in the capital, condemning the government's independence celebration and failure to ease the economic burden.

[1/3] Drivers push auto rickshaws in a line to buy petrol from a fuel station amid Sri Lanka's economic crisis, in Colombo, Sri Lanka, July 29, 2022. India's foreign ministry did not respond to questions from Reuters on its plans and strategic aims in Sri Lanka. New Delhi has long been concerned about China's clout in its neighbourhood, including Nepal, Bangladesh and Sri Lanka. "And as far as Sri Lanka is concerned, we don't want to contribute to any escalation of tension between any countries." "Sri Lanka has clearly benefited from being the closest neighbour to the most powerful country in the region.

☆ Sri Lanka's cancer patients struggle amid economic chaos
▼ + stars: | 2022-12-22 | by ( ) www.reuters.com time to read: +6 min

The 32-year-old vegetable farmer was diagnosed with lung cancer in 2021 and started receiving treatment earlier this year just as Sri Lanka's economy went into free-fall. Amid crippling fuel scarcity and weeks of unrest, Kumarasinghe said he was unable to travel the 155 km (96 miles) between his home and Sri Lanka's main cancer hospital on the outskirts of the country's largest city, Colombo, for treatment. Kumarasinghe is among hundreds of cancer patients who have had their treatment upended by Sri Lanka's worst economic crisis since independence from Britain in 1948. Hospitals countrywide have struggled to contend with severe drug shortages, which have worsened over the last eight months, a representative of Sri Lanka's largest doctors union told Reuters. Sri Lanka's health ministry and senior health officials did not respond to calls from Reuters.

☆ The Year in Pictures 2022
▼ + stars: | 2022-12-19 | by ( The New York Times | ) www.nytimes.com time to read: +57 min

Every year, starting in early fall, photo editors at The New York Times begin sifting through the year’s work in an effort to pick out the most startling, most moving, most memorable pictures. But 2022 undoubtedly belongs to the war in Ukraine, a conflict now settling into a worryingly predictable rhythm. Erin Schaff/The New York Times “When you’re standing on the ground, you can’t visualize the scope of the destruction. Jim Huylebroek for The New York Times Kyiv, Ukraine, Feb. 25. We see the same images over and over, and it’s really hard to make anything different.” Kyiv, Ukraine, Feb 26.

☆ Sri Lanka's economy shrinks 11.8% in second-worst quarterly performance
▼ + stars: | 2022-12-15 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +2 min

COLOMBO, Dec 15 (Reuters) - Sri Lanka's economy shrank 11.8% in the July-September quarter from a year ago, government data showed on Thursday, the second-worst quarterly contraction ever for the country going through a severe financial crisis. Economic mismanagement and the impact of the COVID-19 pandemic have left Sri Lanka short of dollars for essential imports including food, fuel, fertilisers and medicine. "This is the second-worst contraction Sri Lanka has experienced in a quarter after a 16.4% contraction in the second quarter of 2020," said Dimantha Mathew, head of research at First Capital. Sri Lanka's central bank estimates the economy will contract by about 8% in 2022. The economy had contracted 8.4% year-on-year in the second quarter, one of the worst performances in the island of 22 million people.

☆ Exclusive: Sri Lanka expects up to $8 bln more in loans, asset restructuring
▼ + stars: | 2022-12-15 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +3 min

[1/2] Sri Lanka's Foreign Minister Ali Sabry speaks during an interview with Reuters at his office, in Colombo, Sri Lanka December 14, 2022. Sabry said Sri Lanka was still waiting for "letters of assurance" for debt restructuring from its largest bilateral creditor China, as well as India. The two countries have backed the restructuring efforts and Sri Lanka has shared documents and data with them, he said. Overall, Sri Lanka's economy has improved with essential imports such as fuel and food becoming regular, Sabry said. "So that should start in the next quarter of next year with the IMF loan coming in, other multilateral agencies coming in.

☆ Asia's year in review: Who had it good — and who had it bad — in 2022
▼ + stars: | 2022-12-15 | by ( Curtis Chin | Jose Collazo | ) www.cnbc.com time to read: +7 min

As the new year approaches, we turn again to our annual look at Asia's winners and losers. Government and business leaders in every major economy — China now included — may well hope 2023 is the year when draconian pandemic-related lockdowns become a matter of history. Underscoring the Taiwanese tech industry's critical role, a Semiconductor Industry Association (SIA)/Boston Consulting Group 2021 study found that 92% of the world's most advanced semiconductor manufacturing capacity is located in Taiwan. With numbers like those, Taiwan's semiconductor industry ends the year on the move, still building ties and winning growing support from business and government in the United States and elsewhere. Mixed Year: Asia's 'love' for cryptoAs in much of the world, investors in Asia — once bedazzled if not bewitched by the crypto industry — end the year in a mixed mood.

☆ Hundreds march in crisis-hit Sri Lanka protesting tax hikes, crackdowns
▼ + stars: | 2022-11-02 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +3 min

[1/3] Demonstrators shout at Sri Lankan police officers during an anti-government protest by trade unions, student movements, and civil organisations, including the main opposition parties, amid the country's economic crisis, in Colombo, Sri Lanka, November 2, 2022. We need solutions and we will keep fighting for them," Ceylon Teacher's Union Secretary Joseph Stalin said. Widespread protests in July resulted in former President Gotabaya Rajapaksa fleeing the country and resigning after protesters stormed his office and residence. read moreProtesters carrying national and black flags shouted slogans of "Ranil go home," during the march and called for new elections. They also accused the government of using draconian anti-terrorism legislation to crack down on protest leaders and jail two of them.

☆ Sri Lanka passes constitutional amendment aimed at trimming presidential powers
▼ + stars: | 2022-10-21 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +2 min

COLOMBO, Oct 21 (Reuters) - Sri Lanka's parliament on Friday passed a constitutional amendment aimed at trimming presidential powers, beefing up anti-corruption safeguards and helping to find a way out of the country's worst financial crisis since independence. Sri Lanka has struggled for months to find enough dollars to pay for essential imports such as fuel, food, cooking gas and medicine. Opposition parties and civil society representatives, however, have slammed the amendment as not far-reaching enough in promoting accountability and reducing government powers. "This is just tinkering with presidential powers and the amendment does not implement significant change," said Bhavani Fonseka, a senior researcher at the Centre for Policy Alternatives, a Colombo-based think tank. "The president still retains the power to prorogue parliament, to hold ministries and the constitutional council will still have mostly government appointees."

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