Sri Lanka will not extend emergency as protests tail off
By Waruna Cudah Nimal Karunatilake
S&P pushes Sri Lankan bonds deeper into junk territory with 'default' ratingBy Waruna Cudah Nimal Karunatilake
August 16, 2022
Ranil Wickremesinghe who has been elected as the Eighth Executive President under the Constitution speaks to media as he leaves a Buddhist temple, amid the country's economic crisis, in Colombo, Sri Lanka July 20, 2022. REUTERS/ Dinuka Liyanawatte
COLOMBO, Aug 16 (Reuters) - Sri Lanka's state of emergency imposed in the middle of last month will not be extended beyond this week, President Ranil Wickremesinghe's media office said on Tuesday, as protests against the country's economic devastation petered out.
Lawmakers voted Wickremesinghe in as president on July 20 after his predecessor, Gotabaya Rajapaksa, fled a popular uprising against months of acute shortages of fuel, food and medicine. read more
Six-time Prime Minister Wickremesinghe imposed the emergency from July 18 when he was acting president, after tens of thousands of people stormed into government buildings, seeking solutions to the country's worst economic crisis in more than seven decades.
Wickremesinghe's office cited the president as saying at an event in the main city of Colombo that the emergency would lapse this week.
He has sought peace and political support to help advance bailout talks with the International Monetary Fund. The country has already defaulted on its sovereign debt.
S&P Global on Monday slashed its rating on Sri Lankan bonds to 'D', representing default, after the country missed interest payments due on June 3, June 28, and July 18, and a principal payment due on July 25.
The country is considering restructuring its local and foreign debt in the hope of securing a $3 billion IMF loan.
Ranil Wickremesinghe who has been elected as the Eighth Executive President under the Constitution speaks to media as he leaves a Buddhist temple, amid the country's economic crisis, in Colombo, Sri Lanka July 20, 2022. REUTERS/ Dinuka Liyanawatte
COLOMBO, Aug 16 (Reuters) - Sri Lanka's state of emergency imposed in the middle of last month will not be extended beyond this week, President Ranil Wickremesinghe's media office said on Tuesday, as protests against the country's economic devastation petered out.
Lawmakers voted Wickremesinghe in as president on July 20 after his predecessor, Gotabaya Rajapaksa, fled a popular uprising against months of acute shortages of fuel, food and medicine. read more
Six-time Prime Minister Wickremesinghe imposed the emergency from July 18 when he was acting president, after tens of thousands of people stormed into government buildings, seeking solutions to the country's worst economic crisis in more than seven decades.
Wickremesinghe's office cited the president as saying at an event in the main city of Colombo that the emergency would lapse this week.
He has sought peace and political support to help advance bailout talks with the International Monetary Fund. The country has already defaulted on its sovereign debt.
S&P Global on Monday slashed its rating on Sri Lankan bonds to 'D', representing default, after the country missed interest payments due on June 3, June 28, and July 18, and a principal payment due on July 25.
The country is considering restructuring its local and foreign debt in the hope of securing a $3 billion IMF loan.
People walk along the Pettah Market, amid the country's economic crisis, in Colombo
Mon, August 15, 2022
(Reuters) - Global ratings agency S&P Global on Monday slashed its rating on Sri Lankan bonds to 'D', representing default, following missed interest and principal payments.
The South Asian nation, which had defaulted on a bond payment earlier this year and has $12 billion in overseas debt with private creditors, has been battling the worst financial crisis in its independent history.
Sri Lanka's external public debt freeze prevents payment of interest and principal obligations due on the government's international sovereign bonds.
S&P said it did not expect the Sri Lankan government, which remains in default on some foreign currency obligations, to make the bond payments within 30 calendar days after their due dates.
The ratings agency affirmed its 'SD' long-term and 'SD' short-term foreign currency sovereign ratings on Sri Lanka, as well as reiterated the outlook for the island nation at 'negative'.
The country is considering a restructuring of local and foreign debt. It is due to restart bailout talks with the International Monetary Fund (IMF) in August in the hope of securing $3 billion in funding.
Chinese military survey ship docks at Sri Lanka port
By Uditha Jayasinghe
COLOMBO, Aug 16 (Reuters) - The Chinese survey vessel Yuan Wang 5 docked on Tuesday at Sri Lanka's Chinese-built port of Hambantota, a port official said, a move likely to stoke concern in neighbouring India about the growing influence of its bigger and more powerful rival.
The movements of the ship have fuelled contention between India and China, two of Sri Lanka's biggest allies in its current economic crisis, as India fears China could use the port, near the main Asia-Europe shipping route, as a military base.
"The vessel will be berthed for three days," the official, who declined to be identified as he was not authorised to speak to the media, told Reuters from the southern port.
"The purpose of staying at the port is to stock up on fuel, food and other essentials."
Hours after the ship docked, a Sri Lankan cabinet spokesman said the island nation was working to ensure there was no friction between friendly countries.
"Even before this, there have been ships from the United States, India and other countries coming to Sri Lanka," Media Minister Bandula Gunawardana told reporters.
"We have allowed these ships to come. In the same way, we have allowed the Chinese ship to dock."
Foreign security analysts describe the Yuan Wang 5 as one of China's latest generation space-tracking ships, used to monitor satellite, rocket and intercontinental ballistic missile launches.
The Pentagon says the Yuan Wang ships are operated by the Strategic Support Force of the People's Liberation Army.
On Saturday, Sri Lanka said it had agreed the vessel could dock at Hambantota, despite security concerns raised by India and the United States. read more
India has rejected claims that it has put pressure on Sri Lanka to turn the vessel away.
COLOMBO, Aug 16 (Reuters) - The Chinese survey vessel Yuan Wang 5 docked on Tuesday at Sri Lanka's Chinese-built port of Hambantota, a port official said, a move likely to stoke concern in neighbouring India about the growing influence of its bigger and more powerful rival.
The movements of the ship have fuelled contention between India and China, two of Sri Lanka's biggest allies in its current economic crisis, as India fears China could use the port, near the main Asia-Europe shipping route, as a military base.
"The vessel will be berthed for three days," the official, who declined to be identified as he was not authorised to speak to the media, told Reuters from the southern port.
"The purpose of staying at the port is to stock up on fuel, food and other essentials."
Hours after the ship docked, a Sri Lankan cabinet spokesman said the island nation was working to ensure there was no friction between friendly countries.
"Even before this, there have been ships from the United States, India and other countries coming to Sri Lanka," Media Minister Bandula Gunawardana told reporters.
"We have allowed these ships to come. In the same way, we have allowed the Chinese ship to dock."
Foreign security analysts describe the Yuan Wang 5 as one of China's latest generation space-tracking ships, used to monitor satellite, rocket and intercontinental ballistic missile launches.
The Pentagon says the Yuan Wang ships are operated by the Strategic Support Force of the People's Liberation Army.
On Saturday, Sri Lanka said it had agreed the vessel could dock at Hambantota, despite security concerns raised by India and the United States. read more
India has rejected claims that it has put pressure on Sri Lanka to turn the vessel away.
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