The Hon. (Dr.) Harshana Suriyapperuma

¶ 01 There is very good progress in the IMF Programme at this time. We were able to reach a Staff-level Agreement successfully within a short period. How was this done? Because the work was carried out efficiently, the state machinery was properly managed, and people with the right knowledge are now engaged. There is a genuine interest to take this country forward and rescue it from debt. Despite calls from the Opposition to abandon agreements and start a new journey, we have chosen the path that practically provides the stability the country needs and allows the economy to expand.

¶ 02 After the expiry of the parate execution period, instead of merely granting a temporary suspension under the parate law, a special programme is being finalized to provide relief to small and medium-scale entrepreneurs. Instead of merely granting a suspension of the parate execution, Madam, a package of benefits is currently being finalized for the SME sector.

¶ 03 Investor confidence has increased. The Colombo Stock Exchange has recorded the highest value in its history at this time. What does that indicate? It indicates the confidence domestic entrepreneurs have in the new Government. Not only domestic investors; having issued the ISB restructuring process documents and followed the required procedures, over 98 per cent of foreign investors have expressed confidence in the new Government’s approach. That is why, contrary to expectations that this would go on till around 31 December, we achieved successful results within a short period. As I have been informed, today there will again be disclosures to the London Stock Exchange and the Singapore Stock Exchange on the actual status. According to that information, a vast majority of creditors have accepted the proposal. That is a significant achievement.

¶ 04 The Hon. Leader of the Opposition asked whether there was anything additional we achieved through our programme. In the first half of this year, the restructuring framework had sections called Governance-linked Bonds and Macro-linked Bonds among 11 plain and linked series. However, a few days before the Presidential Election—before we assumed office—we learned that during the discussions, the appetite for Governance-linked Bonds of about USD 1.5 billion had disappeared. The reason was that the then government’s claims were largely untrue and their actions were corrupt. Therefore, foreign investors did not trust that the then government would advance governance reforms.

¶ 05 In very tough discussion rounds, we requested the participating creditors to place their trust in us—in our new approach—and accept at least one of the two Governance-linked Bonds. I have just been informed that creditors have accepted not just one, but both Governance-linked Bonds we offered.

¶ 06 What does that mean? It means that under this framework the international community now has confidence in our governance-led approach. This programme involves bilateral creditors, and they must be considered. There are ISB holders; they must be considered. There is ongoing litigation initiated by Hamilton Reserve Bank; that angle must be considered. There is another bond related to SriLankan Airlines; that, too, must be considered. We must consider the country’s credit rating, and also the implications on the domestic banking system. Taking into account inputs from numerous sectors, we took these decisions and have achieved success so far.

¶ 07 You also asked whether we are aware of swaps. Yes, we are fully aware. You asked whether we are aware of payments due next year. Yes, we are fully aware. In this programme, we will continue this journey by subjecting all data to scrutiny and conducting regular reviews. A suitable team has been assigned, and senior officials are providing the necessary support. Therefore, we are confident that what we told the people during the election will not turn into a mere dream. We have prepared mechanisms to deliver maximum relief through VAT changes, through income tax relief, and to advance the programme we promised.

¶ 08 Thank you.