French envoy in talks with Alles focuses on illegal immigration

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Published

53 mins ago

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2023/02/2

Nuland addressing the media in Colombo (pic by Thushara Atapattu)

US hopes LG polls will be held in March

By Saman Indrajith

US Under Secretary of State for Political Affairs, Victoria Nuland, yesterday said China had not provided credible and specific assurances to the International Monetary Fund (IMF) for Sri Lanka to overcome the current economic crisis.

Addressing the media in Colombo, Nuland said: “What China has offered so far is not enough. We need to see credible and specific assurances that they will meet the IMF standard of debt relief. We, the United States, are prepared to do our part. Our Paris Club partners are prepared to do their part. India has made strong commitments that it will provide the credible assurances the IMF is looking for.”

Nuland said that India and the Paris Club had given strong assurances to the IMF to help Sri Lanka to obtain a $2.9 billion bailout.

“We want to see an IMF program as quickly as possible. That is what Sri Lanka deserves; that is what Sri Lanka needs,” Nuland said.

Nuland said the US would give Sri Lanka an additional USD 30 million to provide 96,000 schoolchildren with food.

She said Sri Lankans had taken to the streets, last year, demanding cleaner, accountable and inclusive governance, with transparency, and the government was expected to hold the elections to enable people to enjoy their democratic rights.

Nuland said that the US was glad to see that consultation between the government and other parties towards reconciliation had commenced. She said that she had met with members of the Tamil political parties, earlier yesterday. “We hope that the dialogue will continue to achieve real results such as return of the lands to their rightful owners.”

Nuland said that the US hoped that local elections would be held in March, the dialogue commenced for reconciliation would continue, and the Prevention of Terrorism Act would be reformed to meet international standards.

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58 mins ago

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2023/02/2

By Sanath Nanayakkare

Small and medium exporters want the Central Bank (CBSL) to give them greater leeway on converting advance payments, they receive from their foreign clients, for confirmed export orders, into rupees.

“Under the existing export repatriation guidelines, we are required to convert such advance payments, into Sri Lanka rupees, within a time frame that does not take into consideration the processing time of export orders. When we receive USD advance payments for export orders, the banks, we deal with, say that they can’t hold USD funds, received as advance payments for export orders, beyond one month, without converting it into Sri Lanka rupees. Banks say they can’t do so because of CBSL’s exports repatriation guidelines. But this rule has hardly taken into account the processing time of our export orders and the credit periods available to us,” SME exporters told The Island.

“We generally get advance payments from our foreign buyers in terms of confirmed export orders, such as value-added products, which we ship to them in 30-45 days. The USD advance payments are credited to our companies’ accounts at the relevant banks. But the rules require us to convert the foreign currency, into Sri Lanka rupees, within a month, hence we cannot benefit from the transactional facilities offered to us by our freight forwarders and foreign intermediate goods suppliers,” they pointed out.

“You see, our freight cost is billed in USD after, 45 days from the date of the bill of lading. Our imported intermediate inputs are billed in USD, within a 30-day credit period. But the banks, we deal with, convert the USD advance payments, into Sri Lanka rupees, before we can settle these bills, under the rules stipulated by the CBSL. This means that the advance payments are converted into Sri Lanka rupees, before the export orders are shipped, and total export proceeds are remitted to Sri Lanka,” they said.

According to them, the Director, Department of Foreign Exchange, at CBSL, has informed them that advance payments, received in respect of exports, are also considered export proceeds and the requirements stipulated, in existing rules, shall be applicable for such export proceeds.

‘In this context, we seek the assistance of the CBSL to allow the above-mentioned requisite payments to be paid on due dates, after the advance is received. We request the CBSL to give a directive to the banks to hold these funds, without converting them, because it is vital for us to benefit from the available transactional facilities to keep our SME export businesses viable in the long term. The Central Bank and the commercial banks are on the same page as per the rules, but SME exporters are left at a disadvantage due to this. So we urge the CBSL to extend the time frame on the mandatory conversion of advance payments received in USD for SME export orders,” they said.

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58 mins ago

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2023/02/2

By Shamindra Ferdinando

The Asian Development Bank (ADB) says political stability is of pivotal importance to ensure the continuation of the ongoing economic recovery programme meant to achieve sustained growth.

The ADB sources said so when The Island asked its Colombo mission whether it had initiated talks with the government or took precautionary measures against the backdrop of political instability caused by an alleged bid to put off scheduled Local Government polls, and the sudden declaration of plans to fully implement the 13th Amendment to the Constitution

Sources said that they had been engaged in close discussion with the government on the economic context and their future assistance. “We will continue this dialogue as the country moves towards recovery and implements reforms. Our assistance to Sri Lanka will be designed in consultation with the government and other stakeholders. Political stability is important to ensure the economic recovery programme goes ahead and the country can achieve sustained growth.”

Last year, the ADB made available USD 200 mn in emergency assistance, following a request made by Sri Lanka. In addition, the ADB supervises a USD 3 mn Japanese grant intended to improve food security and livelihoods of the poor and vulnerable, especially women and children. The ADB, as well as its partners, have intervened in the continuing balance of payments and debt crisis.

The Island also sought an explanation as to how the ADB intended to address continuing failure on the part of Sri Lanka to regulate the Samurdhi Bank by the Central Bank or at least subject the SB to be brought under the supervision of the National Audit Office.

ADB sources said that in terms of the Food Security and Livelihood Recovery Emergency Assistance Project, the streamlining of the Samurdhi Bank’s cash transfer processes, using digital technologies, was being discussed, in consultation with the Central Bank of Sri Lanka, and other relevant agencies. A special audit of emergency cash assistance, processed by the Samurdhi Bank, will be conducted by the National Audit Office for the project in 2023, sources said.