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Sri Lanka seeks loan repayment moratorium in ongoing debt restructuring talks

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Sri Lanka is seeking a loan repayment moratorium for its US$ 12 billion bilateral debts until 2028 during the ongoing talks in London with bondholders on debt restructuring as the country still grapples to emerge from the economic crisis, a Finance Ministry top official divulged.

A bondholders steering committee is expected to reach an agreement or sign a memorandum of understanding considering a proposal from the government to rework the overseas debt that has been in default since 2022.

The government is asking lenders to accept a plan to defer payments for five years and then pay down the debts from the beginning of 2028 through 2042, the top official said.

China has expressed willingness to continue supporting its financial institutions to actively negotiate with Sri Lanka, maintain close communication with other creditors in the International Monetary Fund, and assist Sri Lanka in financial relief, China’s foreign ministry said in a joint bilateral statement (with Sri Lanka) on Friday.

This statement was issued following the conclusion of Prime Minister Dinesh Gunawardena’s visit to China, where he discussed finalising a debt restructuring deal on the instructions of President Ranil Wickremesinghe.

The two countries also signed nine new agreements amid Sri Lanka’s efforts to restructure and revive its economy.

Finance State Minister Shehan Semasinghe, who accompanied the Prime Minister, noted that Sri Lanka reached an agreement in principle with the EXIM Bank of China, and it could be extended further this year.

China’s Exim Bank had agreed to extend the US$4.5 billion debt servicing for two years starting in 2022 as an immediate contingency measure based on Sri Lanka’s request.

Sri Lanka’s largest bilateral debtors, China with $4.6 billion and India with $1.37 billion, are outside of the Paris Club.

India has already decided to go along with the Paris Club, but China does not want to get onto that platform.

China has given loans to several other countries in the world amounting to around $600 billion, and therefore it cannot consider Sri Lanka for preferential debt treatment, officials said.

Chinese authorities have already informed the government to resume the debt repayment from April 2024, and thereafter they can consider extending some relief.

Sri Lanka’s external debt stock stood at US$ 37.3 billion as of December 2023, bilateral debt at US$ 10.8 billion, multilateral debt at US$ 10.84 billion, and commercial loans at US$ 14.74 billion.

(Except for the headline, this story, originally published by sundaytimes.lk has not been edited by SLM staff)

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03 remanded over shooting of Halloluwa’s vehicle

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The Colombo Magistrate’s Court on May 24 ordered to remand 03 suspects over the shooting of Thusitha Halloluwa’s vehicle.

They have been remanded until May 29.

The remanded suspects include the shooter’s wife, who was arrested at a Maharagama housing complex.

Officers from the Colombo Crime Division (CCD), who are investigating the shooting incident further state that the other 02 arrested are the security guard of the housing complex and a person who was traveling with the shooter.

Investigations have also revealed that the security guard of the apartment complex alerted the shooter about the police arrival during the raid, leading the shooter to flee immediately.

The vehicle of Thusitha Halloluwa – the former DG of Public Relations to former President Ranil Wickremesinghe, was shot in Narahenpita on May 17.

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Basil Rajapaksa absent from court; bail not revoked

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Matara Magistrate Aruna Buddhadasa recently ordered Basil Rajapaksa – founder of the Sri Lanka Podujana Peramuna and former Finance Minister, to appear before the Matara Magistrate’s Court on November 21.

The Magistrate made the order when he took up an existing case regarding a land in the Eliyakanda area of Matara that was purchased using allegedly illegally earned money of Rs.50 million.The FCID had filed this case against Basil Rajapaksa and 04 other defendants in 2017 over the alleged purchase of a 1.5 acre land in Eliyakanda, Matara under the name of his wife’s sister, using Rs.50 million allegedly obtained through illegal means.

The first suspect in this case is Tissa Galappaththi, the second suspect is Muditha Jayakody, the third suspect is former Minister Basil Rajapaksa, and the fourth suspect is Ayomi Galappaththi, the sister of the former Minister’s wife.The first suspect in this case is Tissa Galappaththi, the second is Muditha Jayakody, the third is former Minister Basil Rajapaksa, and the fourth is Ayomi Galappaththi, the sister of Rajapaksa’s wife.

While the first 02 suspects, who are out on bail, appeared in court, Basil Rajapaksa and Ayomi Galappaththi were absent.

Deputy Solicitor General Lakmini Girihagama, representing the Attorney General’s Department, noted that while Basil had been granted court permission to travel abroad until May 23, he failed to appear without a reasonable excuse and requested that his bail be revoked and a warrant issued.

In defense, President’s Counsel Anil Silva stated that his client had booked return flights for May 18 and 19, but US doctors had advised Rajapaksa against flying for 06 months after he had fallen off a chair, sustaining damage to his neck and nerves.

Girihagama questioned the claim, stating that the X Rays only indicated a neck sprain and a minor muscle strain. Noting that the medical reports were dated March 18, 2025, it was also questioned as to why tickets were booked for May 18 and 19 if doctors had actually advised against flying for 06 months. Therefore, Girihagama called for the court to revoke bail.

President’s Counsel Silva strongly defended his client, rejecting accusations of faking illness, affirming the credibility of US medical reports, and assuring the court of his client’s presence at the next hearing, arguing there is no need for a warrant or revoke bail.

After hearing both sides, Magistrate Aruna Buddhadasa decided not to issue a warrant or revoke bail, instructing that the accused be present on the next court date. The case was postponed to November 21.

(Source: Dinamina)

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President Dissanayake pays last respects to cinema legend Malini Fonseka

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President Anura Kumara Dissanayake paid his final respects yesterday (25) evening to the late veteran actress Malini Fonseka, fondly remembered as the “Queen of Sri Lankan Cinema.”

Her remains have been placed at the Tharangani Hall of the National Film Corporation, allowing the public to bid farewell to the beloved screen icon.

Malini Fonseka passed away in the early hours of May 24 at the age of 78 while undergoing treatment at a private hospital in Colombo. 

Her body was initially kept at her Madiwela residence before being moved to the National Film Corporation, where crowds continue to gather in tribute.

Among the dignitaries paying their respects were former Presidents Ranil Wickremesinghe, Mahinda Rajapaksa, Gotabaya Rajapaksa, and Chandrika Kumaratunga.

The final rites of the legendary actress will be held today (26) with full state honors at Independence Square.

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