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A devastating accusation by Justin Trudeau against India

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On the evening of June 18th Hardeep Singh Nijjar, a Canadian Sikh leader whom India considered a terrorist, was sitting in his truck in a car park outside a gurdwara (a Sikh temple) in Surrey, a suburb of Vancouver in British Columbia, when two masked men shot him dead. They fled through a park and disappeared.

On September 18th Justin Trudeau, Canada’s prime minister, told lawmakers in Ottawa that “credible intelligence” from the country’s security services linked India to the killing. It is a highly unusual accusation for the leader of one democracy to make against the government of another. Mr Trudeau said that he had discussed the allegation with Narendra Modi, India’s prime minister, on the sidelines of a g20 meeting in Delhi on September 10th, and that he would push India to co-operate with an investigation. “Any involvement of a foreign government in the killing of a Canadian citizen on Canadian soil is an unacceptable violation of our sovereignty,” he told Parliament.

The accusation marks a new low in the already frosty relationship between the two countries. Shortly after Mr Trudeau’s remarks, Canada’s foreign minister announced the expulsion of the head of India’s intelligence agency in Canada.

India’s foreign ministry categorically denied the “absurd” allegation, and said Canada had shared no evidence for the damaging claim with India. It also announced the reciprocal expulsion of a Canadian diplomat and a suspension of visa issuance in Canada. It accused Canada of sheltering “Khalistani terrorists and separatists”, a reference to those who seek an independent homeland for Sikhs in the state of Punjab and other parts of northern India.

In India, the public reaction to Mr Trudeau’s speech broadly echoed the government’s line. A spokesman for the main opposition Congress party declared that India must be “uncompromising” in fighting terrorism. Several editorials highlighted Canada’s alleged failures in tackling Sikh extremism and accused Mr Trudeau of pandering to terrorists. Some supporters of Mr Modi also predicted that the row would help the prime minister. “Justin Trudeau starts campaigning for Modi ahead of the 2024 General Elections by blaming his govt of neutralising a terrorist on Canadian soil,” Nupur J. Sharma, the editor of OpIndia, a right-wing website, wrote on X (formerly Twitter).

A deterioration in India-Canada ties had been apparent for some time. On September 1st Canada said it had paused trade talks with India. In the days leading up to the g20 Canada, while doggedly raising its allegation, apparently tried to reduce tensions by quietly sending the head of its intelligence service and Mr Trudeau’s national security adviser to India. It did not help. At the g20 summit in Delhi, where other Western leaders held long meetings with Mr Modi, Mr Trudeau was fobbed off with a ten-minute huddle on the sidelines. A smiling Mr Modi draped a silk scarf round Mr Trudeau’s neck in what now looks like an ironic welcome. Mr Modi later accused Canada of allowing India’s enemies to promote secession and incite violence against Indians in Canada. (A previous trip by Mr Trudeau to India in 2018 turned into a fiasco after a convicted Sikh extremist was invited to a reception for him at the Canadian High Commissioner’s residence; the invitation was later withdrawn.)

Sikh separatism, the cause behind a bloody insurgency in India in the 1980s and early 1990s, has long been a sore point between India and Canada, which has a large Sikh diaspora. India accuses Canada of being soft on militant separatists. Former Canadian security officials say India’s government has conducted surveillance on Khalistani groups in Canada for years. Canada itself became the victim of Khalistani terrorism in 1985, when a bomb blew up an Air India aeroplane flying from Montreal to London, killing 329 people, mostly Canadians. It remains the deadliest terrorist attack against Canada in history. Just one suspect was convicted in connection with the bombing; another was shot dead in his car last summer, in the same city where Mr Nijjar was killed.

The plane bombing has in no way soured relations between the 770,000 Sikhs living in Canada and their fellow Canadians. An important political constituency, Sikhs are courted by all Canadian parties. Canada insists it has cracked down on the small minority who have brought their fight for Khalistan to the country. Mr Nijjar had been a vocal advocate for an independent Khalistan, but he denied involvement in violence.

A deepening estrangement between the two countries would have economic implications, if modest ones. Canadian investors have become more important in India as they seek to profit from its high-growth economy: cpp Investments, a giant Canadian national savings fund, has some $20bn invested in the subcontinent. India is Canada’s tenth-largest trading partner.

All eyes on Modi

But the ramifications of Mr Trudeau’s accusations go far beyond the relationship between Canada and India. The prime minister said that Canada, a member of the Anglophone “Five Eyes” intelligence alliance, was “closely co-ordinating” with allies on the matter. On September 18th America’s National Security Council duly released a supportive statement, saying it was “deeply concerned about the allegations referenced by Prime Minister Trudeau” and urged India to co-operate with the Canadian investigation. Britain and Australia, which have both had recent run-ins with India over the activities of Sikh separatists on their soil, issued similar statements. All three countries are courting India as a potential hedge against Chinese domination in Asia, and are painfully reluctant to antagonise it. Yet Mr Trudeau’s public airing of the allegation, based on evidence that they will have seen, gave them little choice.

If Mr Trudeau’s allegation is correct, the assassination points towards an activist turn in the operations of India’s intelligence services in the West, not least the Research and Analysis Wing (raw), India’s foreign-intelligence arm, the likeliest candidate for such an operation. Carved out of the domestic Intelligence Bureau in 1968, reputedly with help from the cia, raw has focused mainly on gathering intelligence on, and conducting operations in, Pakistan, China and other neighbours of India. It has been suspected of conducting black operations to influence India’s neighbours, and to arrest and sometimes to kill its foes. But it is hard to find a precedent for such a seemingly overt attack in the West. It would have been “madness to perpetrate an act like this in a Five Eyes country”, says a European former intelligence official.

India may hope to emulate Israel’s Mossad, whose famously long arm strikes foes far away. But it risks being classed with Russia, whose murders abroad have provoked widespread condemnation and Western sanctions. If the allegations are correct, raw may have spotted a chance to get rid of a troublesome separatist in Canada and send a message to others like him. But the killing seems more likely to inflame than quell the Khalistanis—while forcing India’s Western allies to ponder how benign a global power it really is. 

THE ECONOMIST

Main tourism plan for Arugam Bay to boost tourism in the East

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By: Staff Writer

Colombo (LNW): The main tourism plan for Arugam Bay was presented by Senior Advisor to the President on National Security and Chief of the Presidential Staff Sagala Ratnayake, during a meeting convened at the Presidential Secretariat to discuss the Arugam Bay Tourism Development Plan.

The Arugam Bay Tourism Development Plan, has the potential to significantly contribute to Sri Lanka’s tourism industry, according to presidential media division.

During the discussion, the issues identified in the initial meeting led by President Ranil Wickremesinghe and the steps taken to address them were thoroughly examined

The President announced the swift implementation of a comprehensive plan to elevate the Arugam Bay tourist zone into a highly desirable destination for both local and international tourists, with the potential to generate substantial revenue.

He emphasized the importance of meticulous planning in identifying areas that necessitate development, with the intention of executing these initiatives systematically.

The President further highlighted the prospect of achieving significant income by promoting water sports such as water skiing, which holds popularity along the Arugam Bay coastline.

In the process of developing the Arugam Bay Coastline into a prominent tourist destination, a proposal was put forth to relocate the existing fishing port to an alternative location, equipped with necessary facilities for fishermen.

The special meeting held under the patronage of presidential chief of staff Saga la Ratnayake focused attention on the challenges related to infrastructure development in the area and the obstacles hindering the growth of the tourism sector.

Participants from various organizations also discussed how each institution could contribute to finding solutions to these challenges.

During the discussion, Mr. Sagala Ratnayaka presented the main tourism plan for Arugam Bay, prepared by the Urban Development Authority (UDA) while a three-year tourism development plan is also due to be presented before the President for consideration.

The relevant meeting was held under Ratnayake’s chairmanship, and it was also agreed that a follow-up meeting would be held in a month to assess the progress of these initiatives.

The Arugam Bay Tourism Association (ABTA) is working actively once again to woo tourists to the area According to tourism officials, infrastructure development is the need of the day as post-tsunami reconstruction has not matched the expectations of modern day tourism.

The new Arugam Bay Bridge constructed to replace the old, original landmark box girder linking Arugam Bay with Pottuvil town seems the only significant sign of development.

The 45 km stretch of golden beach from Pottuvil to Okanda is the base for future development in Sri Lanka.

It has great surfing, wildlife sanctuaries, and heritage sites, places of religiously importance as well as opportunities for adventure and nature holidays with camping facilities.

Urgent Need for Arugam Bay Tourism Development Strategy

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A meeting was convened at the Presidential Secretariat to discuss the Arugam Bay Tourism Development Plan, which has the potential to significantly contribute to Sri Lanka’s tourism industry. Mr. Sagala Ratnayaka, Senior Advisor to the President on National Security and Chief of the Presidential Staff, chaired the meeting.

During the discussion, the issues identified in the initial meeting led by President Ranil Wickremesinghe and the steps taken to address them were thoroughly examined.

The focus was on the challenges related to infrastructure development in the area and the obstacles hindering the growth of the tourism sector. Participants from various organizations also discussed how each institution could contribute to finding solutions to these challenges.

Mr. Sagala Ratnayaka presented the main tourism plan for Arugam Bay, prepared by the Urban Development Authority (UDA). Additionally, a three-year tourism development plan will be presented to the president for consideration.

It was agreed that a follow-up meeting would be held in a month to assess the progress of these initiatives. Those in attendance included Member of Parliament D. Weerasinghe, IGP C. D. Wickramaratne, Ampara District Secretary Chinthaka Abeywickrama, and heads of relevant organizations.

IMF MD Kristalina Georgieva Commends Sri Lanka’s Economic Progress in Meeting with President Wickremesinghe at UNGA

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In a crucial meeting held during the United Nations General Assembly (UNGA) in New York, Managing Director of the International Monetary Fund (IMF), Ms. Kristalina Georgieva, met with President, Ranil Wickremesinghe, to discuss vital economic matters.

During the meeting, Ms. Georgieva and President Wickremesinghe delved into the ongoing financial sector reforms and the substantial progress made in debt restructuring initiatives. The IMF Managing Director commended the Sri Lankan government for its effective measures in curbing inflation and nurturing a conducive environment for business growth, as well as the flourishing tourism industry. She expressed her satisfaction with the government’s commitment to enhancing the overall economic landscape.

Notable figures attending this significant meeting included Sri Lanka’s Foreign Minister, Mr. Ali Sabry, President’s Secretary Mr. Saman Ekanayake, Ambassodor Mr. Mahinda Samarasinghe, UN Permanent Representative Mr. Mohan Peiris and President’s Advisor Mr. Dinesh Weerakkody alongside senior officials representing both Sri Lanka and the International Monetary Fund.

The government’s robust economic development program leads to a substantial 62.1% drop in inflation

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Acting Finance Minister Ranjith Siyambalapitiya announced that over the past year, inflation in Sri Lanka has significantly decreased to 62.1%, thanks to President Ranil Wickremesinghe’s robust economic reform agenda.

Mr. Siyambalapitiya also highlighted that inflation, which stood by 66.7% during the first and second quarters of 2022, has now plummeted to just 4.6% for the same period in 2023.

He made this announcement during a press conference held yesterday  (21) at the Presidential Media Center, focusing on the theme of ‘Collective Path to a Stable Country.’

Acting Finance Minister Siyambalapitiya further said;

Over the past year, the government successfully increased the country’s foreign reserves from 1.8 billion dollars to 3.8 billion dollars. In August 2022, the exchange rate stood at Rs. 361 per dollar, but by August 2023, one dollar could be acquired for Rs. 321. This shift is not the result of artificial control but rather a reflection of the rupee’s value adjusting in response to supply and demand for the dollar, which holds significant economic importance.

The interest rate for deposits, previously at 14% in 2022, has been lowered to 11%, while the loan interest rate, previously at 15.5%, has been reduced to 12% this year. Notably, last year, the primary account deficit was Rs. -247 billion, but this year it has turned into a surplus of Rs. 27 billion. This marks the first surplus in the primary account balance in over 40 years.

Tourist arrivals, which numbered 496,430 in 2022, have surged to 904,318 during the first two quarters of this year. Equally impressive is the growth in tourism earnings, which rose from 832.6 million US dollars in 2022 to 1,304.5 million US dollars in the first two quarters of this year, reflecting a remarkable 56.7% increase compared to the previous year.

In the past year, the amount of money remitted by Sri Lankans living abroad to Sri Lanka has surged from 2,214.8 million US dollars to 3,862.7 million US dollars this year, marking a remarkable 74.4% increase according to data from the Ministry of Finance.

On August 1, 2022, the QR code system was introduced as a measure to manage petroleum demand due to foreign exchange shortages. This led to a significant disparity between normal demand and supply, resulting in a notable increase in diesel consumption by 28% and petrol consumption by 83% in June 2023, when the QR system was partially relaxed. However, as of September 1, the QR code system, which directly impacts economic growth, has been completely lifted.

Upon assuming office, President Ranil Wickremesinghe faced a daunting challenge of addressing a 14-hour power outage, which had a direct impact on the economy. Presently, the government ensures a continuous and stable electricity supply to the population.

As of August 23, 2023, there were 1467 imported goods banned due to foreign exchange shortages. Currently, the ban applies to only 279 items. Furthermore, the import of vehicles, which had been halted in 2020, now includes buses and trucks for public transport.

In April 2022, the country faced difficulties in meeting its debt obligations. However, the government has since secured the first installment under the International Monetary Fund’s Extended Credit Scheme, contributing to stabilizing the country’s economy compared to the previous year.

Health Sector Protests Emerge Over Disparities and Medicine Shortages

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On September 22, a consortium of trade unions representing the healthcare sector, in collaboration with civil service organizations, is set to stage demonstrations in front of hospitals, highlighting persistent disparities within the healthcare system and the ongoing medicine shortages.

The decision to protest during their lunch break, ensuring minimal disruption to patient care, was a carefully considered move by these health unions.

Dr. Madura Seneviratne, the District Secretary of the Nuwara Eliya District for the All Ceylon Health Trade Union Federation (ACHTUF), shed light on the motives behind the protests. He emphasized that these demonstrations materialized in response to the government’s perceived failure to take requisite measures to address the critical issues plaguing the healthcare sector.

The protests underscore the pressing need for attention and action regarding disparities in healthcare and the vital issue of medicine shortages, which impact the quality of care and services delivered to the public. As the demonstrations unfold, stakeholders will be closely watching for potential developments in the ongoing dialogue between healthcare unions and the government.

US supports the govt in providing ‘Thriposha’ to mothers and children.

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By: Staff Writer

Colombo (LNW): The United States Agency for International Development (USAID) handed over a substantial consignment of 4,700 Metric Tonnes of soya beans and maize to Sri Lanka Thriposha Limited, to support the continuation of the Thriposha fortified food programme.

The United Nations World Food Programme (WFP) facilitated the handover at a special event held at the Thriposha factory.

This consignment forms part of a wider contribution of USD20 million from the United States towards WFP’s emergency operation to support Sri Lankan communities impacted by the country’s economic crisis.

As a significant contributor locally and globally, the US has enabled WFP to provide cash, food assistance and value vouchers to food-insecure Sri Lankan families, while supporting national food and nutrition programmes, including school meals and Thriposha- a fortified blended food product, the WFP said in a statement.

“The U.S. Agency for International Development is pleased to deepen our long partnership with Sri Lanka through our recent emergency funding to provide essential ingredients for the Thriposha blended food supplement to prevent malnutrition of Sri Lankan children,” states Asta Zinbo, Director of the Office of Governance and Vulnerable Populations, USAID.

“The country’s economic crisis, with lost jobs, reduced incomes, and soaring costs of living, has affected people’s ability to access healthy meals. Vulnerable groups, including pregnant and breastfeeding women and young children, are at elevated risk of malnutrition, the statement added.

“Of all of the groups affected by the country’s economic crisis, it is the children and women we are worried about the most,” says Gerard Rebello, Deputy Country Director of WFP, Sri Lanka.

“We are grateful for the generosity and support from the United States in assisting these vulnerable groups, so they receive critical nutrition at a time when they need it the most.

WFP’s support to the Thriposha programme is an integral part of our emergency operation to safeguard development progress and mitigate the long-term effects of the economic crisis.”

Thriposha is used to supplement a regular diet with essential nutrition and is provided free of charge through the national nutritional programme.

The US-funded raw materials will be used to provide four rounds of Thriposha for over half a million pregnant and breastfeeding women, and undernourished children under five, it added.

WFP, with funding from donors like the US, has reached over 3.8 million people with food and nutrition assistance since June 2022 through its emergency operation, including those who received support through multiple activities, according to the WFP.

India’s IRCON to install Sri Lanka’s new railway signaling system.

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By: Staff Writer

Colombo (LNW): In the wake of an ambitious plan of Sri Lanka Railways restructure for better service, Transport and Highways Ministry has signed a contract with India’s IRCON International Limited for the design, installation, testing, and commissioning of a Signaling system along the Maho to Anuradhapura route, spanning 66 kilometers.

The contract, valued at US$14.90 million, was inked in the presence of Sri Lanka’s Minister of Transport and Highways, Bandula Gunawardane, and India’s High Commissioner in Sri Lanka, Gopal Baglay.

The project, which will be executed under an Indian Line of Credit of USD 318 million, is set to bolster transportation links and foster economic growth.

High Commissioner Mr. Baglay emphasized the significance of this initiative for Sri Lanka, reflecting India’s commitment to supporting its neighbour.

He highlighted that the credit line for this project in the current situation, symbolizes the continued desire of the Government and the people of India to stand with the people of Sri Lanka.

Sri Lanka’s Transport and Mass Media Minister Gunawardane expressed gratitude to Prime Minister Narendra Modi and the Indian government for their support, particularly during Sri Lanka’s recent economic challenges.

It was also pointed out that Sri Lankan railway projects have received support in the form of LOCs in recent times only from India.

Projects of over US$ 1 billion in the Railway sector have been completed under 5 Indian LOCs to date. .

IRCON is currently involved in a $ 91.27 million project to upgrade and rehabilitate the railway line from Maho to Omanthai, covering a distance of 128 kilometers.

The track rehabilitation from Anuradhapura to Omanthai is already finished, while work on the Anuradhapura to Maho section is scheduled to begin in January 2024.

India continues to finance and provide expertise to upgrade and modernize Sri Lanka’s railway system.

Indian public sector unit IRCON is upgrading the railway line, which includes ancillary work, from Maho to Omanthai, at a cost of USD 91.27 million under an existing Indian Line of Credit (LOC) of USD 318 million, the Indian High Commission said

IRCON International, an Indian Railways subsidiary that began operating in Sri Lanka in March 2009, has improved the 115-km-long Southern line and rebuilt the whole 253-km-long network of rail lines in the Northern Province to help modernize Sri Lanka’s rail network.

Through the installation of a cutting-edge signaling and communications system on a 330-km section of the Sri Lankan railway line, IRCON has also helped to ensure safety and dependability.


Sri Lankan Rupee Shows Modest Gain Against US Dollar

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The Sri Lankan Rupee exhibited a slight appreciation against the US Dollar today, September 22, compared to the rates recorded on Thursday.

Peoples Bank reported that the buying rate for the US Dollar dipped from Rs. 317.15 to Rs. 316.91, while the selling rate decreased from Rs. 330.39 to Rs. 330.13.

Similarly, the Commercial Bank noted a decline in both the buying and selling rates of the US Dollar, with rates moving from Rs. 318.67 to Rs. 317.20 for buying and from Rs. 329 to Rs. 328.50 for selling, respectively.

Sampath Bank also registered a reduction in the exchange rates for the US Dollar, with the buying rate sliding from Rs. 319 to Rs. 318 and the selling rate dropping from Rs. 329 to Rs. 328.

This slight appreciation of the Sri Lankan Rupee against the US Dollar may reflect various factors influencing the foreign exchange market and economic dynamics in the region. Traders and economists will be closely monitoring these fluctuations for potential implications on the country’s financial landscape.

Sri Lanka Original Narrative Summary: 22/09

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  1. President Ranil Wickremesinghe meets UN Secretary-General António Guterres at the United Nations Headquarters & the duo engage in “cordial discussions”.
  2. President Ranil Wickremesinghe tells the UN that adverse climate impacts affect clean energy, food security, water, and farmers’ livelihoods in SL, straining the recovery from last year’s economic crisis: also says, as a climate-vulnerable, debt-ridden nation, the need for climate finance is urgent, but wealthy countries are falling short on their commitments.
  3. Agriculture Minister Mahinda Amaraweera says the Govt has earmarked Rs. 12 bn to facilitate farmers in procuring fertiliser for the upcoming cultivation season: also says farmers will receive Rs.15,000 per hectare, allowing them the flexibility to choose between organic or chemical fertilisers based on their specific agricultural needs.
  4. Police say the measures taken to suppress crimes such as murders and drug trafficking are being implemented continuously, but that certain crimes being led by individuals residing in foreign countries raises practical problems in terms of the implementation of the law.
  5. Japanese Ambassador Mizukoshi Hideaki confers “The Order of the Rising Sun, Gold and Silver Rays” on Sunil Wijesinha, former President of Japan-SL Technical & Cultural Association, JASTECA, in recognition of his distinguished contribution to strengthening economic relations and promoting mutual understanding between Japan and SL.
  6. Former Chairman of the Public Utilities Commission Janaka Ratnayake submits an audit report on the fuel price data which shows significant discrepancies in the pricing calculations presented to the COPE Committee on 7 July 2022: indicates that the overall loss is estimated at over Rs. 40 billion in 2022.
  7. President Ranil Wickremesinghe to reconstitute the Monetary Board of the Central Bank: the new Central Bank Act, which was drafted with the support of the IMF, is expected to ensure “more independence to the country’s monetary authority”.
  8. India’s IndiGo airline announces the introduction of new direct flights between Hyderabad and Colombo from 2 November.
  9. SJB MP S M Marikkar says that a Govt led by SJB Leader Sajith Premadasa would initiate an investigation and apprehend the individuals responsible for orchestrating the 2019 Easter Sunday attack.
  10. Women’s Cricket Consultant & Olympic silver medalist Susanthika Jayasinghe says the Asian Games is the biggest sporting event in the Asian region: also says the SL women’s cricket team led by Chamari Athapaththu is strong and their performance has been very good recently.