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Australian agency says China-backed hackers behind cybercrimes

REUTERS

SYDNEY — Australia’s government cybersecurity agency on Tuesday accused a China-backed hacker group of stealing passwords and usernames from two unnamed Australian networks in 2022, adding that the group remained a threat.

A joint report led by the Australian Cyber Security Centre said the hackers, named APT40, had conducted malicious cyber operations for China’s Ministry of State Security, the main agency overlooking foreign intelligence.  “The activity and techniques overlap with the groups tracked as Advanced Persistent Threat (APT) 40,” said the report, which included inputs from lead cybersecurity agencies for the United States, Britain, Canada, New Zealand, Japan, South Korea and Germany.

China’s embassy in Australia did not immediately respond to a request seeking comment.

US and British officials in March had accused Beijing of a sweeping cyberespionage campaign that allegedly hit millions of people including lawmakers, academics and journalists, and companies including defense contractors. They said China-backed “APT31” was responsible for the network intrusion.

China at the time said the hacking allegations by US and Britain were “political maneuvering.”

APTs are a general term for cyber actors or groups, often state-backed, that engage in malicious cyber activities. New Zealand in March said APT40 targeted its parliamentary services and parliamentary counsel office in 2021 and had gained access to important information.

“(The Australian government) is committed to defending Australian organizations and individuals in the cyber domain, which is why for the first time we are leading this type of cyber attribution,” Defense Minister Richard Marles said in a statement released to the media.

The report comes as both Australia and China are rebuilding ties after a period of strained relations. Ties hit a low in 2020 after Canberra called for an independent investigation into the origin of COVID-19. Beijing responded by imposing tariffs on several Australian commodities, most of which have been lifted. — Reuters

Here are the world’s 10 best airports for 2024

SALT LAKE CITY International Airport ranks in AirHelp’s top 10 in the world for 2024. — GEORGE FREY/BLOOMBERG

SUMMER TRAVEL may be well underway, but there’s still time to make better airport choices for the second half of the year.

On July 9, AirHelp. Inc. released its 2024 score report ranking the world’s best and worst airports. The company, which secures compensation for air travelers after delays and cancelations, creates the rankings partially based on the claims it processes worldwide — along with outside sources tracking on-time performance, customer feedback and the quality of food and shopping options at 239 airports globally. Punctual arrivals and departures represent 60% of each airport’s score.

The data analysis spans from May 1, 2023, to April 30, 2024, and includes 17,550 airport ratings that were collected by surveying passengers from 64 countries about their most recently used airports.

Taking the crown this year is Hamad International Airport in Qatar — which ranked fifth in last year’s awards. Cape Town International Airport in South Africa and Chubu Centrair International Airport in Japan come in second and third place, respectively.

But the real surprise this year points to the US, with Salt Lake City (SLC) International Airport cracking the top 10 list; the gateway to Utah’s epic skiing and numerous national parks ranked 8th in the world and best in the US. The new SLC airport is a state-of-the-art facility that opened in September 2020 and has been seeing improvements ever since, with its final phase expected to be completed this fall.

The appearance of a US airport in the global top 10 is especially noteworthy, considering just three US airports made it on AirHelp’s top 50 global airports list in 2023: Minneapolis-St. Paul International (No. 13), Seattle-Tacoma International (No. 34) and Detroit Metropolitan Airport Wayne County (No. 38). This time, 10 US airports are among the top 50, including Washington Dulles International (No. 11), Hartsfield-Jackson Atlanta International (No. 16), Nashville International (No. 18) and Phoenix Sky Harbor International (No. 21).

“Looking at the 2024 rankings, the US has made strides, landing seven airports in the top thirty,” said Tomasz Pawliszyn, chief executive officer of AirHelp, in an emailed statement. As airports restaff post-pandemic, the airport experience is improving for US-bound travelers, he added.

That’s reflecting in the performance scores among the top 10 US airports, which show significant improvement over last year’s scores. On the 2023 list, the top-scoring US airport — Minneapolis-St. Paul (MSP) — received a score of 8.15 (out of a maximum of 10 points). This year, six of the top 10 US airports received a higher score. — Bloomberg


Here are AirHelp’s top 10 best airports in the world

10. Narita International Airport, Tokyo, Japan (NRT)

9. Val-de-Cans/Júlio Cezar Ribeiro International Airport, Belém, Brazil (BEL)

8. Salt Lake City International Airport, US (SLC)

7. Muscat International Airport, Oman (MCT)

6. Johannesburg-OR Tambo International Airport, South Africa (JNB)

5. Brasília-President Juscelino Kubitschek International Airport, Brazil (BSB)

4. Osaka International Airport, Japan (ITM)

3. Chubu Centrair International Airport, Nagoya, Japan (NGO)

2. Cape Town International Airport, South Africa (CPT)

1. Hamad International Airport, Qatar (DOH)

The few can beat the many, Taiwan’s Lai says

TAIWAN President-elect Lai Ching-te, of Democratic Progressive Party (DPP), holds a press conference, following his victory in the presidential elections, in Taipei, Taiwan, Jan. 13, 2023. — REUTERS

TAIPEI — There are many examples in history of smaller militaries beating larger opponents, Taiwan President Lai Ching-te told air force officers in comments released on Tuesday, offering encouragement ahead of annual war games being held later this month.

China, which views democratically governed Taiwan as its territory, has been staging regular exercises around the island for four years to pressure Taipei to accept Beijing’s claim of sovereignty, despite Taiwan’s strong objections.

Taiwan’s armed forces are dwarfed by those of China’s.

But Taiwan has been modernizing the military not only with new equipment like submarines but championing the idea of “asymmetric warfare,” to make its forces more mobile and hard to attack, with for example vehicle-mounted missiles and drones.

Mr. Lai, wearing camouflaged military fatigues and taking questions in front of a Taiwan-made Ching-kuo Indigenous Defense Fighter at an air base in central Taiwan, said military strength is not a simple mathematical question of addition and subtraction.

“The amount of equipment admittedly is important, but it cannot represent the military power of a country,” Mr. Lai said, in video footage released by his office. “In history, there are many cases where the few win out over the many, and there are countless ways to win over old-fashioned enemies with new thinking.”

A senior Taiwan official said last month that this year’s annual Han Kuang drills will be as close as possible to actual combat, no longer just putting on a show to score points but aiming to simulate real fighting given a rapidly rising “enemy threat” from China.

Taiwan starts its five-day Han Kuang exercises on July 22, alongside the Wan An civil defense drills where cities are briefly shut down during simulated air raids.

China held two days of its own war games around the island shortly after Mr. Lai took office in May, saying it was “punishment” for his inauguration speech, which Beijing denounced as being full of separatist content.

Mr. Lai rejects Beijing’s sovereignty claims and says only Taiwan’s people can decide their future. He has repeatedly offered talks but been rebuffed by China.

“The peace we want is a peace with a solid foundation, a true peace that must be established by our own strength,” Mr. Lai said at the Taichung air base.

China has previously said it is futile for Taiwan to think it can use arms to prevent “reunification”.

Asked by a fighter pilot whether Taiwan was giving people a wrong impression it was preparing for war with its focus on defence self-sufficiency, Mr. Lai said he wanted peace.

“Some people may have such misgivings but everyone knows we are a peace loving country,” he said. “But the peace we want is a ‘true peace’ that has a solid foundation and is established by our own strength.” — Reuters

Biden is not being treated for Parkinson’s, White House says after NYT report

GAGE SKIDMORE-COMMONS.WIKIMEDIA.ORG

WASHINGTON — US President Joseph R. Biden is not being treated for Parkinson’s disease and has not seen a neurologist outside of his annual physicals, the White House said on Monday, after the New York Times (NYT) reported that visitor logs showed a doctor specializing in the illness visited the White House at least eight times from August through March.

Concerns that Mr. Biden might be suffering from an undisclosed illness have risen since he stumbled, appearing frail and losing his train of thought at times, at his June 27 debate against Republican Donald Trump.

Dr. Kevin O’Connor, the White House doctor, issued a letter on Monday night that said Mr. Biden has not seen a neurologist outside of his normal annual physical.

Mr. Biden is battling criticism from some Democrats that he lacks the mental acuity to stand as their nominee against Mr. Trump in the Nov. 5 presidential election. Mr. Biden has, however, said he will not abandon his campaign, telling MSNBC via phone on Monday that he was “not going anywhere.”

A Reuters review of White House visitor logs showed that Dr. Kevin Cannard, a neurologist and movement disorders specialist from Walter Reed National Military Medical Center, visited the White House eight times from August through March. Mr. Cannard has co-authored research on treatment for early Parkinson’s disease at Vanderbilt University Medical Center.

Mr. O’Connor said Mr. Cannard’s visits to the White House were part of his neurological clinics aimed at supporting “thousands” of active duty members assigned in support of White House operations and not to treat the president. Mr. Cannard’s visits to the White House were first reported by The New York Post on July 6.

One former White House official, who worked for Mr. Biden when he was vice president under President Barack Obama and as president, was treated by the same doctor for migraines in 2016, the former official told Reuters.

The doctor came to the White House once a month then as part of his rotation, the individual said.

White House spokesperson Karine Jean-Pierre refused to confirm or elaborate on Mr. Cannard’s visits earlier in the day. At the media briefing, she was frequently challenged by reporters and said she wanted to respect the privacy of all involved for security reasons.

She said Mr. Biden had seen a neurologist three times connected to his annual physical exam. She did not explain Mr. Cannard’s presence at the White House but suggested it might be connected to treating some of the military personnel who work at the White House complex.

“There are thousands of military personnel that come to the White House and they are under the care of the medical unit,” she said. — Reuters

Bird flu strain in US cows shows minimal air spread in ferret study

DAVID FARTEK-UNSPLASH

LONDON — The bird flu strain found in cows in the United States is not easily transmitted through the air among ferrets, a new study shows, although the scientist who led the work said it had shown some ability to spread this way.

Ferrets are considered to be the best small mammal for studying influenza virus infection and transmission, and are often used to inform assessments of the public health risks of emerging viruses.

In the experiment led by researchers at the University of Wisconsin-Madison, ferrets infected with a sample of the H5N1 bird flu strain were placed near healthy animals, but not close enough for physical contact.

None of the four healthy ferrets exposed in this way became ill and no virus was recovered from them during the study.

However, one of the ferrets produced antibodies to the virus, the researchers later found, suggesting it had been infected.

“It is good news that the virus does not have extensive transmissibility between ferrets through the air, but it is concerning that it has the ability to transmit (at all in this way),” said study author and flu virologist Yoshihiro Kawaoka.

A virus that can spread easily through the air between humans would pose a greater pandemic threat than H5N1 currently does.

That risk is assessed by public health agencies worldwide as low, as there is no evidence of any human-to-human transmission.

Four human cases, all dairy workers, have been reported in the U.S. since avian flu was confirmed in dairy cows in March. All four people have recovered.

The study, published on Monday in Nature, also showed the bird flu virus in cows can bind to human-type receptors under lab conditions. These receptors are how flu viruses typically enter and infect human cells in the real world.

Bird flu prefers to bind to avian-type receptors only, which are scarce in humans. The lab results need further study to assess their real-world implications, scientists said, as in the past flu viruses that developed the ability to bind to both types have caused human pandemics.

Scientists have so far suspected the virus spreads among animals and humans through contact with infected milk or aerosolized milk droplets, or from exposure to infected birds or poultry.

The study also confirmed that the virus, isolated from the milk of an infected cow in New Mexico, made both mice and ferrets sick after exposure to the unpasteurized milk.

It also spread through the body to muscles and mammary glands in infected mice, as it appears to do in cows.

Angela Rasmussen, a virologist at the University of Saskatchewan in Canada, said it was a relief to see the virus had not yet acquired the capability to cause a human pandemic, but this did not mean it would never do so, particularly if the spread among cows goes unchecked.

“It’s always better to stop a pandemic before it starts than to respond to it once it has started. We should heed this warning and take action now,” she said via email.

The study was funded by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health in the U.S. — Reuters

TikTok Shop and DTI empower Filipino MSMEs with two-day workshop

DTI Undersecretary Cristina Roque

TikTok Shop, in partnership with the Department of Trade and Industry (DTI), recently hosted Camp Asenso, a transformative two-day event aimed at empowering Micro, Small, and Medium Enterprises (MSMEs) by leveraging the power of e-commerce and live-streaming.

The program featured comprehensive master-classes starting on TikTok Shop, including content guidelines, affiliate marketing, and live-selling demonstrations, providing valuable insights and practical knowledge to help MSMEs thrive in the digital age.

“The new partnership between the Department of Trade and Industry and TikTok Shop marks a significant milestone, promising to open up better opportunities for our MSMEs. Through our collaboration, we will dive into the dynamic world of TikTok and explore how powerful platforms can elevate our businesses. Digitalization is very important for our country, and the insights and skills you gain here will not only enhance your businesses but also pave the way for sustained growth and success. Together, we can leverage the strengths of TikTok Shop and the support of the Department of Trade and Industry to propel our businesses to newer heights,” shared  DTI Undersecretary Cristina Roque.

The two-day program, which was attended by nearly 400 TikTok Shop sellers, also included showcases by Casi’s Mushroom Chicharon and Tiny Buds, where participants learned firsthand how these businesses utilized TikTok Shop to scale their operations and reach a wider audience.

Josemartin Casillano of Casi’s Mushroom Chicharon highlighted the role of storytelling in engaging customers, detailing how the business leveraged TikTok’s platform to share its unique story and mission. By focusing on authentic content that showcased their journey from humble beginnings, the brand connected deeply with its audience, boosting visibility and fostering a loyal customer base resonating with its values and products.

Josemartin Casillano of Casi’s Mushroom Chicharon

“Our journey with TikTok Shop has allowed us to narrate our story — from our humble beginnings to our current success,” Casillano explained. “By highlighting our collaboration with local farmers and leveraging TikTok Shop’s unique features, we’ve transformed into a nationwide brand, reaching thousands of customers.”

Furthermore, Lorin Tan of Tiny Buds shared her brand’s story and practical tips for leveraging TikTok Shop, navigating the dynamic digital landscape by staying ahead of trends and continuously engaging with the audience. Tan emphasized the importance of adaptability and innovation, enabling the brand to maintain a strong customer connection and sustain growth.

Lorin Tan of Tiny Buds

“TikTok Shop has allowed us to build meaningful connections with our customers and continuously adapt to new trends. It’s essential to step out of our comfort zones, invest in time, space, and people, and keep learning to thrive in this dynamic environment,” Tan advised.

“At TikTok Shop, we believe in the power of e-commerce and livestreaming to transform businesses of all sizes, especially SMEs. Our mission is to provide entrepreneurs with the tools and platforms needed to expand  reach and grow in this digital age. We are committed to supporting Filipino MSMEs every step of the way by ensuring access to resources and opportunities to thrive. We will continue to roll out initiatives designed to help our MSMEs succeed, through initiatives such as educational programs, enhanced seller support and campaigns,” Niks Fojas, Category Lead for F&B at TikTok Shop, affirmed.

TikTok Shop’s efforts to support MSMEs are reflected in initiatives like the “Buy Local, Shop Local” campaign, aimed at promoting local businesses and enhancing the e-commerce landscape. The partnership with the DTI further enhances this commitment to advance digital growth and success for MSMEs nationwide.

 


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New era is here: Re-Imagine your shopping experience with Shoppedia

The Shoppedia Team

A brand new e-commerce business is here to reinvent your shopping experience. Shoppedia previewed its new platform through a thrilling event entitled ‘Shoppedia: Merchant’s Preview (Re-Imagine)’ that happened last June 28, 2024 held at The Heritage Hotel located in Pasay City.

The event aimed to capture the attention of Filipinos, earn the trust of brands, merchants, and investors, and most importantly, build credibility and foster strong relationships with the public.

The said event was hosted by Christine Bersola-Babao, a notable media personality. Attended by prestigious people such as Samira Gutoc, a former member of the ARMM Regional Legislative Assembly; and Dr. Maria Lutgarda Manuela B. Punay, Buri Cu Buri Mu Food Products Trading and the Vice-Chair of the Board of Directors of PEPCo-Pampanga Entrepreneur Producers Cooperative, took their time to give a talk about the ecommerce situation in the Philippines.

The Merchant Acquisition Director of Shoppedia, Jed Carreon, gave warm remarks to welcome the guests; while the Head of Operations, Francis Balagtas, closed the event, leaving a message to the guests to keep anticipating what is more to expect with Shoppedia.

Their team also prepared a special intermission from Jos Garcia and Nolo Lopez to serenade the guests. They even gave an exclusive first look at the AVP, promotional video, and jingle video to the people present at the event.

Shoppedia Managing Director Neil La-as

One of the main highlights of the event was the inspiring speech from Shoppedia’s CEO, Neil La-as. His main goal is to change the trajectory of the e-commerce business in the Philippines, which he quoted, “Together, let us reimagine the future of e-commerce in the Philippines. Let us build a thriving online marketplace that reflects our values, our aspirations, and our unwavering love for our country.”

In photo are Shoppedia Managing Director Neil La-as and Shoppedia Managing Partner Prince Allan Sison with merchant-partners.

Join Shoppedia on this exciting journey and elevate your shopping experience with their new platform, designed to bring the best of e-commerce right to your fingertips.

Visit https://shoppedia.ph/ to learn more about them.

 


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EXPLAINER | Understanding Filipino consumer rights on the Internet

The Internet Transactions Act protects the consumer, the retailer, and all other players in the digital ecosystem, according to Marianne Malate-Guerrero, a professorial lecturer and faculty member of the University of Asia and the Pacific, and also a management consultant specializing in legal risk management and change management.

“Whatever rights a consumer has outside of the Internet should be the same if transacted on the Internet. That’s the overreaching principle here,” she said.

Interview by Patricia Mirasol
Editing by Arjale Jayrie G. Queral

South Korea’s Yoon to discuss Pyongyang’s ‘distinct threat’ to Europe at NATO

South Korean President Yoon Suk-yeol. — REUTERS

 – South Korean President Yoon Suk Yeol said he would discuss with NATO leaders the distinct threat North Korea poses to Europe by deepening military ties with Russia, warning that Moscow must choose between the two Koreas where its true interests lie.

It “depends entirely” on Russia where it wants to take future ties with South Korea, Mr. Yoon said, adding that Seoul would make a decision on weapons support for Ukraine based on how a new military pact between Moscow and Pyongyang plays out.

“Military co-operation between Russia and North Korea poses a distinct threat and grave challenge to the peace and security on the Korean peninsula and in Europe,” Mr. Yoon told Reuters.

The remarks came in a written response to Reuters’ questions ahead of a visit to Washington for a NATO summit.

Mr. Yoon, who became the first South Korean leader to attend a NATO summit in 2022, is set to depart on Monday for the Washington event, his third time attending such a meeting.

Together with Australia, Japan and New Zealand, South Korea makes up the four Asia-Pacific partners joining in the talks on July 10 and 11.

Relations between South Korea and Russia have soured as Moscow receives shipments of ballistic missiles and artillery from Pyongyang for its war against Ukraine. Both Russia and North Korea deny such deals.

Russia has called South Korea “the most friendly among unfriendly countries”, with President Vladimir Putin saying it would be making “a big mistake” if it decided to supply arms to Ukraine.

South Korea protested when Putin visited Pyongyang in June and signed a treaty with leader Kim Jong Un that covers mutual defense.

“North Korea is clearly a menace to the international society,” Mr. Yoon said in his comments. “I hope that Russia will sensibly decide which side – the South or the North – is more important and necessary for its own interests.”

He added, “The future of ROK-Russia relations depends entirely on Russia’s actions,” referring to South Korea by its official name, the Republic of Korea.

Russia said it “fully disagreed” with Mr. Yoon’s comments calling on it to choose between North and South Korea.

Moscow supports building good relations with its neighbors but South Korea has imposed sanctions on Russia while North Korea is a partner, Kremlin spokesman Dmitry Peskov said in comments posted by the Russian embassy in Seoul on social media platform X on Tuesday.

Mr. Yoon has pushed for greater security ties with Europe and other US allies to deter North Korea’s nuclear and missile threats.

At the same time, he has looked to boost the South’s role in global security, on issues such as Russia’s invasion of Ukraine and rivalry between China and the United States.

 

ARMS FOR UKRAINE

When asked if he would authorize weapons for Ukraine, Mr. Yoon said South Korea would look at “the level and substance of military co-operation between Russia and North Korea”.

That would include areas such as arms dealing, transfers of military technology and assistance with strategic materials, he added.

Russia, a permanent member of the UN Security Council which approved sanctions resolutions until 2017, has engaged in an “illegal” military partnership with North Korea, Mr. Yoon said, adding that it was troubling to consider what help it might be giving Pyongyang in return.

There will be a clear “negative” impact on South Korea’s ties with Russia if it continues to violate UN resolutions, he added.

Before Russia invaded Ukraine in 2022, it was South Korea’s fifth-largest export destination, while Russia was a key supplier of energy to South Korea, the Washington-based Center for Strategic and International Studies says.

South Korea will take its partnership with NATO to a new level in September, through a cyber defence exercise in which it plans to host NATO member states, organised by the country’s intelligence agency, Mr. Yoon said.

Leaders are gathering in Washington for the summit of the North Atlantic Treaty Organization that will also celebrate the 75th anniversary of the military alliance.

Mr. Yoon declined to comment on possible changes to US policies if Donald Trump becomes president a second time in November elections, but pointed to unwavering bipartisan support for the US-South Korea alliance over the past 70 years.

“The alliance will stay strong going forward,” Mr. Yoon added.

Mr. Trump’s allies are assuring officials in Japan and South Korea he will support a Biden-era effort to deepen three-way ties aimed at countering China and North Korea, Reuters has reported. – Reuters

Trump predicts Biden will stay in presidential race

Republican presidential candidate Donald Trump said he expected President Joe Biden to remain in the race for the White House despite growing calls within Biden’s Democratic Party for him to step aside for a younger nominee.

Mr. Trump, 78, said on Monday that Mr. Biden, 81, would refuse to quit the campaign because of his ego and noted that the president had the Democratic nomination locked up because of all the convention delegates he won during the Democratic primary elections earlier this year.

Mr. Biden has repeatedly said he is staying in the race.

“Interestingly, he’s got a lot of power, because he’s got the delegates. You know, when you have the delegates, unless he says, ‘I’m getting out,’ they can’t do anything to get him out other than the 25th amendment,” Mr. Trump told interviewer Sean Hannity in a telephone call broadcast on Fox News.

The 25th amendment of the US constitution enables the vice president and cabinet members to declare the president is unable to discharge the powers and duties of the office, transferring the job to the vice president as acting president. There is no indication Vice President Kamala Harris or top Democrats have advanced that option.

“He’s got an ego, and he doesn’t want to quit. He doesn’t want to do that. It just looks to me like that’s what he wants,” Mr. Trump said of his rival, who unseated Trump when the former president ran for re-election in 2020.

The interview came amid turmoil for Democrats following Biden’s disastrous debate against Trump on June 27, which has prompted growing calls within his party for him to withdraw from the campaign.

Mr. Trump’s interview contradicted casual statements captured on video recently, when Mr. Trump falsely told supporters at one of his golf courses that he had driven Biden out of the race.

“He’s quitting the race … I got him out,” Mr. Trump says in a video published by the Daily Beast on Wednesday. – Reuters

Russian corvette conducts drills with Chinese warships in Philippine Sea, TASS reports

WIKIMEDIA/MIL.RU

A Russian Sovershennyi corvette and Chinese warships conducted training exercises while patrolling in the Philippine Sea, Russia’s TASS state news agency reported, citing the Russian Pacific Fleet press services.

“The Pacific Fleet Sovershennyi corvette, together with a detachment of PLA (People’s Liberation Army) Navy warships … conducted training to inspect a suspicious vessel during a joint naval patrol in the Philippine Sea,” TASS cited the press service as saying.

“During the episode of inspecting a suspicious vessel, Russian and Chinese naval sailors worked out an algorithm for joint actions.”

No details were given on the origin of the “suspicious vessel”. – Reuters

Sri Lanka to wrap up bond talks soon, seek to balance India and China ties

PIXABAY

 – Sri Lanka will wrap up talks with international bondholders on restructuring $12.5 billion in debt within a few weeks, Foreign Minister Ali Sabry said on Tuesday, a major step for the island nation to emerge from its worst financial crisis in decades.

Sri Lanka will also seek to balance its ties with giant neighbor India and China to ensure that there is no difference in dealing with the two, he said, as the rival Asian giants are key creditors and investors but are also jostling for geopolitical influence in the small Indian Ocean country.

“Hopefully within a couple of weeks,” Mr. Sabry said in an interview at the Reuters NEXT conference in Singapore, when asked when the nation’s bond restructuring efforts with creditors will be finished.

“Towards the end of this month, officially, we are done and dusted with the restructuring process, then of course, in line with that, we need to start payment,” he said.

Sri Lanka secured a provisional agreement with some of its bondholders to move forward on restructuring its international bonds last week but now needs the other private creditors and the International Monetary Fund (IMF) to also agree.

The country, which has $37 billion in external debt in total, clinched an agreement with its official creditors including Japan, China and India in late June to restructure $10 billion in debt.

In total, the debt rework is estimated to save Sri Lanka $8 billion in write-offs and delay capital repayments by at least four years.

Sri Lanka will use this opportunity to restart about a dozen stalled, foreign-funded development projects and promote economic growth, Mr. Sabry said.

Sri Lanka needs to continue reforms including imposing property taxes, revamp loss-making state-owned companies and improve dollar reserves to put its economy fully on track, the IMF said in its latest review.

 

BALANCING INDIA, CHINA

A country of 22 million, Sri Lanka’s economy is heavily dependent on foreign tourists and investments while its strategic location on a major east-west shipping route close to the southern tip of India makes it a key political player.

India, which has strong cultural ties with Sri Lanka, and China have competed for influence in Colombo for years and the island nation has often been caught in their rivalries.

India is also critical to Sri Lanka’s tourism, port development and renewable energy sectors with the two countries planning to connect their power grids eventually, Mr. Sabry said.

Closer ties with southern Indian states such as Tamil Nadu will fuel “a lot of synergies” between the two countries that will help Sri Lanka’s economy growth faster.

New Delhi has in recent years objected to Chinese research vessels docking at Sri Lanka’s ports saying it is concerned about the capabilities and intentions of such missions close to its territory, causing Colombo to suspend foreign research ships docking this year.

Mr. Sabry said Colombo has now decided to engage with India, China and others while making it clear to its partners that it will “not allow anything which would legitimately threaten” a neighbor’s security.

“We are not going to have a system which applies to everyone else and not to China…all these systems will be universal … as a neutral player, we should do that,” he said.

Sri Lanka is scheduled to hold presidential elections before mid-October, which Mr. Sabry said was evolving into a three-horse race between incumbent President Ranil Wickremesinghe and two opposition politicians with the economy being the key battleground.

Sri Lanka is expected to grow 3% this year for the first time since its financial crisis in 2022 when the economy went into freefall due to a severe shortage of dollars that forced it to default on its foreign debt. – Reuters