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RW wants debt restructuring concluded before China visit, will push for it on UNGA sidelines

RW wants debt restructuring concluded before China visit, will push for it on UNGA sidelines

10 Sep 2023 | By Capt. Vasabha

  • RW to meet global leaders, IMF MD in New York, focus on debt restructuring
  • Treasury Sec., CBSL Gov. and Snr. Advisor re-commence talks with Paris Club
  • Paris Club consortium sets end-October target to conclude SL debt restructuring
  • President wants debt talks ended before China visit to present to Chinese heads
  • RW to hold first meeting with visiting IMF review team online from Cuba on 15th
  • German Chancellor Scholz to be briefed by RW during pending visit end-October
  • RW to reshuffle State ministers after US visit, no changes to Cabinet ministers
  • Govt. decides not to respond to Channel 4 claims; Defence Ministry responds
  • SLFP split widens with Dayasiri’s removal from post; no other choice, says Maithri
  • Anura Yapa takes the lead in Lanza’s alliance, commences talks with all parties



The Ranil Wickremesinghe Government seems all set with its responses to face the International Monetary Fund’s (IMF) first review of the Extended Fund Facility (EFF) due to commence this week.

President Wickremesinghe is meanwhile gearing to visit Cuba and the US from this Wednesday (13). Wickremesinghe’s first stop in the tour will be Cuba where he will address the G77 + China Leaders’ Summit.

The summit, themed ‘Current Development Challenges: Role of Science, Technology and Innovation,’ is scheduled for Friday (15) and Saturday (16) in Havana, Cuba.

The President is participating in the summit following an official invitation from Cuban President Miguel Diaz-Canel.

The G77 + China Leaders’ Summit represents the largest intergovernmental coalition of 134 developing nations, as recognised by the United Nations. It serves as a platform for southern countries to voice and promote their shared economic interests while enhancing their collaborative negotiating capabilities.

From Cuba, Wickremesinghe will make his way to New York, the US to attend the 78th UN General Assembly (UNGA) starting on 18 September. Wickremesinghe is to address the UNGA on 21 September.

During his stay in New York, the President is due to meet with global leaders and heads of international financial institutions, including the Managing Director of the IMF. Wickremesinghe is to use these meetings to push for support for the finalisation of Sri Lanka’s debt restructuring programme.

Wickremesinghe will also have his first engagement with the visiting IMF delegation online from Cuba. The meeting is expected to take place either on Thursday (14) in the night hours in Cuba, which will be Friday (15) morning in Sri Lanka, or will depend on the meeting between Wickremesinghe and Diaz-Canel.

Meanwhile, former Central Bank Governor and senior economist Dr. Indrajit Coomaraswamy sounded upbeat on the prospects of Sri Lanka satisfying the IMF in the upcoming review this month as it has exceeded expectations in certain aspects.

“On the first review, I think we seem to be in pretty good shape. The visiting IMF team will be reasonably satisfied with a number of aspects of the programme. Sri Lanka has outperformed and has overachieved on the monetary side. The quantitative targets have been met,” Dr. Coomaraswamy had said recently.


Pushing debt talks

While the IMF review process on the EFF is to commence, Treasury Secretary Mahinda Siriwardana, Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe, and Senior Economic Advisor to the President Dr. R.H.S. Samaratunga have recommenced discussions with the Paris Club after the latter’s summer holidays to expedite Sri Lanka’s debt restructuring programme.

It is learnt that while the Paris Club remains positive on Sri Lanka’s debt restructuring programme, there are issues with the timing of concluding the programme. It is also learnt that the Paris Club expects the programme to be concluded by end-October.

The issue of debt restructuring and its urgency is also expected to take a key place during the G20 discussions in New Delhi this weekend. 

Meanwhile, Indian Prime Minister Narendra Modi has said that India has been greatly sensitive to Sri Lanka’s needs. He has also said that Sri Lanka is a “valued neighbour” of India. “We have also been greatly sensitive to the needs of our valued neighbour, Sri Lanka, during their tough times,” Modi had said in an interview with PTI.

Modi had also called the global debt crisis a matter of great concern for the world, especially for developing countries.


Deal before China

It is clear that President Wickremesinghe is keen on seeing a finalisation of Sri Lanka’s debt restructuring programme with the Paris Club consortium prior to his visit to China in mid-October.

However, as the Paris Club and its members feel that reaching a final stage of the restructuring programme will take until end-October, Wickremesinghe is expected to use all his meetings with key members of the Paris Club to push for the programme to be concluded soon.

A highly-placed Government source said the President was very keen on seeing the finalisation of the debt restructuring programme prior to his three-day visit to China on 15 October, where he will engage with heads of the Chinese Government in order to push for China to also commit to the programme.


Visiting Germany

Government sources also said that President Wickremesinghe was expected to visit Germany towards the end of the month. However, the dates and agenda for the visit are yet to be finalised, it is learnt.

The President is expected to push Sri Lanka’s debt restructuring programme with German Chancellor Olaf Scholz.


Reshuffle on the cards

Meanwhile, on the local political front, it is learnt that President Wickremesinghe will engage in reshuffling several State ministries. The reshuffle will however not be extended to Cabinet ministers.

The President seemingly feels that carrying out a Cabinet reshuffle will stir up a hornet’s nest, with Cabinet ministers lobbying to either retain their portfolios or add more portfolios while some Government and Opposition legislators eying ministerial portfolios are once again pushing for their appointments.

Given the complexities involved in a Cabinet reshuffle, Wickremesinghe has decided not to proceed with it a few months prior to the 2024 Budget.

However, the President has been considering a reshuffle of State ministers for a few months and it has been further propelled by the recent clashes between several State ministers and their Cabinet counterparts.

State Minister Premalal Jayasekara had recently come out criticising his Cabinet Minister, Nimal Siripala de Silva, while senior ministry staff and a group of State ministers have also raised their grievances with Prime Minister Dinesh Gunawardena, calling for the President to intervene and resolve their issues.


Channel 4 saga

However, one of the key issues facing the Wickremesinghe Government is the Channel 4 ‘Dispatches’ documentary which came out on Tuesday (5) on the Easter Sunday attacks.

In a Channel 4 ‘Dispatches’ documentary aired on the British television station on Tuesday, former Spokesperson of the Tamil Makkal Viduthalai Pulikal (TMVP) Azad Maulana has alleged that the meeting between Easter Sunday bomber Zahran Hashim and State Intelligence Service (SIS) Head Suresh Sallay had taken place in the east and that he had also been present.

The TMVP political party was formed by former LTTE military leader Sivanesathurai Chandrakanthan alias Pillayan following his defection from the LTTE. Maulana was one of Pillayan’s confidants, but has now sought asylum overseas.

Maulana has shared information related to the Easter Sunday attacks with the UN and the EU as well as other diplomatic missions.

However, the Channel 4 video has failed to garner the initially-anticipated uproar, mostly due to issues of credibility surrounding the channel as well as its key witness.


Govt. discusses

The Channel 4 video was also taken up for discussion at the National Security Council (NSC), it is learnt. Following a lengthy discussion, senior Government officials at the meeting had all been of the view that until and unless Channel 4 presented evidence to back the claims, there was no necessity for the Government to respond to the allegations being levelled by the outlet.

“The Government won’t respond until evidence is presented to support the claims,” a senior Government source claimed, adding that the Government would otherwise have to respond to every unfounded allegation being levelled by media outlets.

As for the Parliamentary Select Committee (PSC) that has been proposed by some Government members to probe the allegations levelled in the video, it is learnt that the President has maintained that the discussion and decision to appoint a PSC to probe the allegations will be up to the parliamentarians.

It is also learnt that the ruling Sri Lanka Podujana Peramuna (SLPP) has been pushing the Government to issue a denial of the video. However, it is evident that Wickremesinghe is hesitant to do so outright since it will create an impression among the public that the Government is trying to protect those being widely accused of being involved in the 2019 attacks.

However, Parliament last week decided to hold a two-day debate in the House on 21 and 22 September over the allegations levelled by Channel 4 on the Easter Sunday attacks and national security.


Defence Ministry responds

Meanwhile, the Defence Ministry issued a statement on behalf of the Government refuting the allegations made by Channel 4.

The ministry has categorically refuted the allegations over the Easter Sunday attacks and reiterated the Government’s unwavering commitment to the truth, justice, and the well-being of the nation.

The statement has noted that while respecting freedom of expression and investigative journalism, Channel 4 will be held unequivocally accountable for any unforeseen actions or repercussions stemming from the “unfounded, malevolent, and poorly-substantiated claims” made in the documentary.

The Ministry of Defence has also reiterated that no terrorists involved in the Easter Sunday attacks had ever been on the Government payroll. 

Moreover, the ministry has noted that it is imperative to underline that the comprehensive investigation conducted by the Australian Federal Police (AFP) and by the Federal Bureau of Investigation (FBI) in the US, along with the subsequent verdict rendered by the US Department of Justice, have reaffirmed the findings of local investigations.


Pillayan slams Maulana

The main witness cited by Channel 4 in its video, Maulana, has also been slammed by his former boss, Pillayan, who has accused Maulana of telling lies in order to strengthen his overseas asylum claim.

The State Minister has denied any links to the Easter Sunday attacks or the bombers, saying that such allegations were baseless. Issuing a statement, Pillayan had noted that his party was often used to mislead the public and added that he had been in prison at the time of the attacks.


Rajapaksas speak out

Meanwhile, members of the Rajapaksa family, who are among the main accused in the Channel 4 video, also commented on the programme.

When asked about the video, SLPP Leader former President Mahinda Rajapaksa (MR) dismissed the question, saying that there was nothing new and that Channel 4 had always made such claims. “They always do this,” MR said.

SLPP MP Namal Rajapaksa had told Parliament on Wednesday (6) that the video had been deleted from the Channel 4 website.

However, Basement Films Founder Ben de Pear, whose company produced the documentary on the Easter Sunday attacks, had said the video was still available. “To be absolutely clear our @Basement_Films @C4Dispatches is freely available on @Channel4,” Ben de Pear said on X.

Namal had further noted that Channel 4 had a long-standing anger against his family, his father (MR), and the Rajapaksa name after ending the war in 2009. “They have been releasing videos against the Rajapaksas ever since. I don’t see Channel 4 as a media institution but as a video-producing institution,” he had noted.

According to Namal, the incident of the Easter Sunday attacks should not be used for political agendas as the politicisation of the incident will hinder the investigations.

Meanwhile, former President Gotabaya Rajapaksa (GR) also released a statement in response to the controversial video, denying the allegations made against him in the documentary. GR in the media release said that the video was “mostly an anti-Rajapaksa tirade aimed at blackening the Rajapaksa legacy from 2005 onwards and is a tissue of lies just like the previous films broadcast by the same channel”.

He had noted that it was “absurd” to claim that a group of Islamic extremists carried out suicide attacks in order to make him the president.

GR had also clarified the allegations being levelled against SIS Head Major General Suresh Sallay: “The central allegation made in the latest film on Sri Lanka broadcast by Channel 4 is that the Easter Sunday suicide bombings of 21 April 2019, carried out by Islamic extremists, had been deliberately facilitated in order to create the conditions to get me elected to power in November 2019. This charge hinges on claims made by one Hanzeer Azad Maulana, an applicant for political asylum in Europe, that he had introduced former Director of Military Intelligence Maj. Gen. Suresh Sallay to the principal suicide bomber Zahran Hashim and his brother Zainee Moulavi in February 2018. Sallay has been described as one of my loyalists. However, he is a career military officer who has served under many presidents and all military officers are loyal to the State and not to private individuals.”


SLFP erupts

Another key drama after the Channel 4 video that unfolded last week was the split that took place within the Sri Lanka Freedom Party (SLFP). 

The growing friction within the SLFP ranks has been witnessed during the past few weeks and it started to hit a peak over the party’s Annual Convention that was held on Sunday (3).

The clash started between a group of SLFPers led by then Party General Secretary Dayasiri Jayasekara and the group of dissident SLFP parliamentarians who were suspended by the party leadership for joining the Government and later returned to the party fold after reaching a consensus with the party leadership.

However, the clash erupted further when Jayasekara was removed from the post of SLFP General Secretary following a decision to the effect taken by the party’s Politburo on Tuesday (5).

SLFP Leader Maithripala Sirisena had sent a letter to Jayasekara informing him that the decision had been made in line with the powers vested with him under Clause 15 of the SLFP Constitution. According to the Party Constitution, a disciplinary inquiry will be initiated against Jayasekara and a charge sheet sent within the next 14 days.

The key accusation against Jayasekara is that he had secretly conspired to remove Sirisena from the party leadership. However, Jayasekara had said that the manner in which he was removed from the position without any prior notice or basis was unprofessional. However, he had said that he would continue to remain with the SLFP.


Headquarters on lockdown

Following Jayasekara’s removal, the SLFP Headquarters located at Darley Road in Colombo 10 had been locked down, with Police Special Task Force personnel also being deployed in and around its vicinity.

However, Sirisena had visited the Party Headquarters on Wednesday (6) afternoon and had been questioned by the media about his decision to remove Jayasekara. 

Responding to the questions, Sirisena had said: “It is not a removal, but a suspension. There is no issue and he can come back to the party for any post, except that of general secretary. We will welcome him. His party membership has been suspended. He can discuss with us, refrain from certain activities, and get the suspension removed at any time.”

Jayasekara meanwhile claimed that Sirisena should have contacted him before making such a decision. “There is a proper procedure to remove someone. He should have spoken to me and asked me to resign. If so, I would have resigned. It was he who appointed me and I have done nothing wrong. This was done without any notice. However, I will continue to be with the SLFP.”


The smiling cut-throat

Meanwhile, Jayasekara was last week engaged in a conversation with Parliamentarians Upul Galappaththi and Lalith Ellawala in the Parliament corridor when Sirisena was making his way to the Chamber.

Galappaththi had gestured towards Jayasekara and said: “Here comes your boss.”

Sirisena, seeing the three parliamentarians, had made his way towards them and asked, “Dayasiri, how are you?”

Jayasekara had responded saying that they were reading the letter sent by Sirisena (the suspension letter). “You smile and then cut the throat, don’t you, sir?” Jayasekara had said.

Ellawala had then asked Sirisena whether he did not feel sorry for Jayasekara. “I am sad, but I had to do what needed to be done,” Sirisena had said.

However, it was Galappaththi’s next comment that had caught Sirisena by surprise. Galappaththi had asked Sirisena whether he had applied the same theory to the ‘helicopter’ (the Freedom People’s Council led by MPs G.L. Peiris and Dullas Alahapperuma). Sirisena had smiled and walked into the Chamber.

Parliamentarians Nimal Lanza and Vajira Abeywardena had also been in the same corridor and had witnessed Sirisena’s actions. After seeing Sirisena walking away from Jayasekara and the others, Lanza had told Abeywardena that SLPP National Organiser former Minister Basil Rajapaksa was better than Sirisena.


The damning letter

Sirisena’s actions against Jayasekara were propelled by a damning letter sent by Jayasekara and three other party members – Shan Wijayalal de Silva, Angajan Ramanathan, and Sarathi Dushmantha Mithrapala – to Sirisena

The letter had reportedly levelled seven key allegations against Sirisena. The letter, it is learnt, had noted that the SLFP had become weak due to the continuous arbitrary actions of the party leadership. 

Sirisena has been accused of conspiring to challenge then President MR, whom the SLFP had named as its candidate at the 2014 Presidential Polls. Sirisena’s actions to form a coalition government together with the United National Party (UNP) in 2015 and deny the main Opposition role to the SLFP have also been criticised in the letter.

The SLFP leadership has been criticised for allowing the SLFP to fall into ruin without taking any disciplinary action against those who had broken away from the party and formed the SLPP. 

The letter has also pointed out that the traditional Catholic voters had distanced themselves from the SLFP after the Party Leader was accused over the Easter Sunday attacks for his failure to act collectively by not inviting the Prime Minister to the National Security Council.

Sirisena’s inaction as the SLFP Leader at the 2019 Presidential Polls had also denied the party the Cabinet positions it was entitled to after the General Election, according to the letter.

The letter, in short, had blamed Sirisena for the identity crisis faced by the SLFP at present.

It has been noted that there was a lack of clarity on whether the party represented the Government or the Opposition SLFP MPs who had accepted ministerial portfolios and had been re-appointed to the party’s Central Committee.


Clash with Suren

Meanwhile, Jayasekara was criticised by SLFP MP State Minister Suren Raghavan in the House. Jayasekara was making a statement on the Employees’ Provident Fund (EPF), claiming that it was implemented by a senior SLFPer, T.B. Ilangaratne. 

Jayasekara had been speaking of the long history of the SLFP, when Raghavan had cut in saying that Jayasekara had been suspended from the party. Angered by the claim, Jayasekara had questioned whether Raghavan even had membership of the SLFP.

Jayasekara has now sought legal redress, with court on Friday decreeing that the SLFP leadership cannot appoint an acting general secretary as only the party’s Executive Committee could make such an appointment.


Anura to lead

Meanwhile, the new political alliance initiated by SLPP dissident MP Nimal Lanza and led by another SLPP dissident, MP Anura Priyadharshana Yapa, is to commence key discussions with major political parties representing Parliament next month (October) once it completes drafting its future programme, which is to be unveiled in the same month.

Yapa last week confirmed that the parliamentarians who supported the new alliance had requested him to take the leadership and that he had accepted. 

Yapa also said that no discussion had been held so far with any political party but that certain meetings had been held with individuals willing to support the new movement. When asked whether they intended to have discussions with the ruling SLPP, Yapa claimed that while this was yet to be decided, some MPs in the party had already informed that they intended to support their faction in the future. 

“It is true that I have been appointed as the head of the alliance. We are not in a hurry to increase our cadre, but we are focusing on making a good programme that everyone can accept. Once we are done with it, we hope to start discussions with political parties. We hope that SLPP MPs who do not wish to continue in that party will support us,” he said.

Yapa added that as the majority of the SLPP MPs had commenced their political career from the SLFP, they hoped to form the new alliance according to the philosophies and principles laid out by its forefathers while blending it with new political trends. He also said that this alliance would be a platform for those who have progressive, centre-left ideologies. 

It has also been reported that Lanza’s alliance had informed President and UNP Leader Wickremesinghe of their preparations and that the alliance would bolster Wickremesinghe’s candidacy at the upcoming Presidential Election.

The new alliance has also planned to form its own bhikkhu organisation soon.

Meanwhile, SLFP Leader Sirisena and the SLPP dissidents faction led by Lanza had a secret meeting recently. Lanza, as well as Yapa, Susil Premajayantha, Mahinda Amaraweera, Lasantha Alagiyawanna, Piyankara Jayaratne, and Nalin Fernando had participated.

Working together in the future had been discussed with the SLFP.


Sajith reiterates stand

Meanwhile, Opposition and SJB Leader Premadasa has refuted claims that he will not contest the Presidential Election against President Wickremesinghe in 2024.

Speaking at an event on Sunday (3), Premadasa had noted that rumours being circulated that he would not contest if Wickremesinghe contested for presidency indicated a threat to his life.

Premadasa had reiterated that he would definitely contest the 2024 Presidential Election. “However, to contest the election, I will have to be alive. I wonder if their saying ‘Sajith won’t run’ is an innuendo about Sajith Premadasa’s life,” he had said.

Premadasa had noted that in order for him to not run for president, he must necessarily cease to exist. “Here I am saying I’m going to contest and then you have those idiots saying I definitely won’t contest,” he said.

Meanwhile, UNP General Secretary Palitha Range Bandara, in response to a comment by Opposition Leader Premadasa on a threat to his life, told a media conference that no one was interested in killing Premadasa.


No system change

Sri Lanka suffers from a continuing accountability deficit – be it for war crime atrocities, more recent human rights violations, corruption, or abuse of power – which must be addressed for the country to move forward, according to a UN Human Rights Office report published on Wednesday.

The UN High Commissioner for Human Rights Volker Türk said the international community, including international financial institutions, should support Sri Lanka in its economic recovery and in meeting its international obligations, while pressing for genuine progress in governance, transparency, and accountability.

“More than a year ago mass protests demanded better governance and an inclusive vision for Sri Lanka – in short, a renewal of the social contract. But the potential for a historic transformation that would address long-standing challenges is far from being realised,” Türk noted.

“Truth-seeking alone will not suffice. It must also be accompanied by a clear commitment to accountability and the political will to implement far-reaching change,” Türk said.

Among other recommendations, the report calls on the authorities to accelerate investigations and prosecutions into emblematic cases of human rights violations, as well as the 2019 Easter Sunday bombings. The High Commissioner has previously urged an independent investigation with international assistance to pursue further lines of inquiry into the full circumstances of the 2019 Easter Sunday attacks.

The report provides an update on the work of the accountability project established by the UN Human Rights Office pursuant to resolutions 46/1 and 51/1. The High Commissioner repeated his call for the international community to support accountability initiatives, notably through investigations and prosecutions using universal or extra-territorial jurisdiction, with other complementary measures.

The report also details a number of concerns with proposed new laws, including a new Anti-Terrorism Bill and legislation to regulate broadcasting.

The report notes that the President has set a different tone in advancing reconciliation initiatives and has promised to stop land acquisition for archaeological or security purposes, which has been an increasing source of local conflicts and tension. At the same time, the UN Human Rights Office continued to receive reports of disputes over land, particularly in the north and east of the country.

The continuing impact of the economic crisis of 2022 and the global downturn on people’s human rights and well-being is highlighted in the report, including a dramatic increase in Sri Lanka’s poverty rate which doubled from 13% in 2021 to 25% in 2022. Food insecurity is affecting a significant proportion of the population, in turn impacting the right to health and increasing the risk of school dropouts.



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