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Sri Lanka Original Narrative Summary: 29/01

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  1. Inbound Tour Operators raise concerns with Tourism and Finance Ministries on the sudden imposition of VAT from 0% to 18% on Destination Management Companies; IMF said to be considering the request: many analysts have regularly pointed out that many fiscal and monetary decisions are now taken by the IMF, and not by the Finance Ministry or the Central Bank.
  2. Public Security Minister Tiran Alles says Police have been tasked with completely eradicating the underworld and narcotic drugs in the country by 30th June’24: asserts the “Yukthiya” operation to do so will not be stopped under any circumstances.
  3. ITAK leadership change expected to pose challenges for the polity in the South: also expected to raise concerns in the international community: greater bias towards Federalism anticipated.
  4. SL film director Jagath Manuwarna wins award of Best Director in the Asian Competition Section of the 22nd Dhaka International Film Festival for his feature film “Rahas Kiyana Kandu”: the film premiered at the 2023 International Film Festival in Rotterdam where it won the NETPAC Awards for the best Asian feature film.
  5. SL Navy seeks the assistance of the Bahrain-based Combined Maritime Forces engaged in counter-terrorism, to obtain the release of SL trawler ‘Lorenzo Putha 4’ with its 6 crew members hijacked by Somali pirates in the Arabian Sea.
  6. SL Railways “parcel” charges increased with effect from 1st February’24.
  7. Passenger ferry service between India’s Nagapattinam and SL’s Kankesanthurai to be initiated on 15th February.
  8. Nutritionist and Lifestyle Medicine Practitioner Dr Raaidah Wahab says the SL rice & curry is one of the most nutritious and balanced meals: warns however the quantities being consumed needs to change.
  9. Finance State Minister Ranjith Siambalapitiya says the issue of Taxpayer Identification Numbers has not been interrupted or stopped, but necessary steps are being taken to prevent the obstacles and provide necessary facilities to the Inland Revenue Department.
  10. International Cricket Council lifts ban imposed on SL with immediate effect.

SL High Commission engages in negotiations with Somali Navy for release of abducted fishermen

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January 29, Colombo (LNW): The Sri Lanka High Commission in Kenya has disclosed ongoing negotiations with the Somali Navy to secure the release of fishermen from the ‘Lorenzo Putha 04,’ who were abducted by Somali pirates.

Sri Lankan High Commissioner to Kenya V. Kananathan highlighted active collaboration with the Somali Navy Chief and efforts to inform the European Union Navy Joint Operations Centre.

The Sri Lankan and Somali authorities are working closely to ensure maritime security and the safe return of the abducted individuals.

Several Sri Lankan Ambassadors have appealed to Somali authorities for intervention, and the Sri Lanka Navy has notified the Combined Maritime Forces in Bahrain, seeking an investigation into the captured fishing vessel.

The ‘Lorenzo Putha 04’ was seized in the Arabian Sea, 1,160 nautical miles from land, with six Chilaw residents on board.

The governments of Sri Lanka and Somalia are committed to swiftly resolving the matter and ensuring the well-being of the abducted Sri Lankans.

SL’s adherence to IMF commitments faces scrutiny amid governance and transparency reform delays: Verité Research

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January 29, Colombo (LNW): Sri Lanka has largely adhered to the majority of its initial commitments outlined in the International Monetary Fund (IMF) bailout programme, but there are lingering concerns regarding delays in implementing governance and transparency reforms, an independent analysis conducted by Verité Research disclosed.

Facing its most severe economic crisis in decades, Sri Lanka secured a pivotal $2.9 billion loan from the IMF in March 2023. Verité Research, utilising its online platform “IMF Tracker” to monitor Sri Lanka’s progress under the Extended Fund Facility (EFF) programme, indicates that out of the 73 commitments due by the end of November 2023, 60 have been fulfilled, albeit with some delays.

Despite this progress, 13 commitments remain unmet, prompting apprehensions about Sri Lanka’s steadfastness in executing crucial reforms.

Among these, five commitments are deemed irreversibly missed, while eight have been deferred to the second phase of the programme leading up to the subsequent IMF review.

Further complicating the situation, the IMF has adjusted due dates for an additional 27 commitments initially slated for post-November, classifying them as “pending” alongside the eight carried-forward obligations.

Additionally, 75 new commitments have been introduced to the programme by both Sri Lanka and the IMF.

Consequently, the commencement of the second phase of the EFF is marked by a substantial 110 commitments awaiting resolution. Noteworthy is the fact that four specific commitments related to governance and transparency remain unfulfilled, encompassing the launch of an online transparency platform for public procurement and tax exemptions, as well as the establishment of a merit-based selection process for directors of the anti-corruption commission.

CIABOC issues directive for asset declarations from prominent figures under new Bribery and Corruption Legislation

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January 29, Colombo (LNW): The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has issued a resolute directive, establishing a deadline for the submission of asset declarations from prominent figures, including the President, Prime Minister, public servants, and media leaders.

This directive aligns with the newly enacted Bribery or Corruption Allegations Act.

In accordance with the provisions of this legislation, approximately 150,000 individuals, spanning politicians, public servants, and media figures, are obligated to furnish detailed asset and liability statements to the CIABOC on an annual basis.

The ambit of this directive encompasses individuals from thirty-one distinct sectors.

The specified deadline for compliance with this mandatory disclosure has been set at March 31st each year, imparting a sense of urgency to the process.

This regulatory measure aims to enhance transparency and accountability within various sectors by ensuring comprehensive reporting of financial interests.

Jagath Manuvarna receives best director award at 22nd Dhaka International Film Festival for debut film ‘Rahas Kiana Kandu’

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January 29, Colombo (LNW): Jagath Manuvarna has been honoured with the Best Director Award at the 22nd Dhaka International Film Festival for his outstanding contribution to the film industry.

The recognition was bestowed upon him for his directorial debut, the film titled “Rahas Kiana Kandu” (Whispering Mountains).

The acknowledgment of Manuvarna’s achievement underscores the exceptional quality and impact of his inaugural directorial venture.

This accolade at the prestigious Dhaka International Film Festival highlights the director’s talent and promises a noteworthy trajectory in the realm of filmmaking.

Sri Lanka: New Transitional Justice Process Lacks Credibility

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UN Human Rights Council Engagement Remains Vital to Ensure Justice for Atrocity Crimes

(Geneva, January 29, 2024) – The Sri Lankan government’s proposed law to create another body to investigate wartime abuses replicates previous failed efforts, ignores the needs of victims, and falls far short of meeting Sri Lanka’s international legal obligations, Human Rights Watch said today. Sri Lankan authorities continue to silence and repress families of victims and their communities 15 years after the armed conflict ended.

The Commission for Truth, Unity and Reconciliation in Sri Lanka Bill was published on January 1, 2024, following limited consultations in 2023 and government pledges to investigate human rights violations and war crimes committed during the 1983-2009 civil war with the separatist Liberation Tigers of Tamil Eelam (LTTE) and in its aftermath. It excludes widespread abuses committed during the left-wing Janatha Vimukthi Peramuna (JVP) uprising of 1988-1990. Instead of providing truth, justice and redress, the proposed law appears designed to deflect international pressure over the lack of accountability for atrocity crimes and to persuade the United Nations Human Rights Council to end its scrutiny of Sri Lanka.

“A credible truth and justice process is desperately needed in Sri Lanka, where wartime abuses resulted in tens of thousands of deaths and enforced disappearances,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch. “However, the government’s continuing repression of victim communities and its protection of alleged perpetrators shows a lack of will to deliver justice, ensuring that this commission will fare no better than previous ones.”

The bill states that the new commission would produce a “truthful record” of violations committed during the war, make recommendations on reparations, and propose measures to prevent a recurrence. While the commission would also be able “to refer matters to the relevant law enforcement or prosecuting authorities … for further investigation and necessary action,” those authorities are already supposed to take up such cases, but routinely fail to do so. Successive Sri Lankan governments have blocked investigations, stalled trials, and silenced victims, in violation of international legal obligations to prosecute or extradite people responsible for serious crimes.

Since the 1990s, the government has created at least 10 similar commissions, at leave five of which have concluded reports. Many victims say they have “commission fatigue” and see no use in testifying again, risking re-traumatization and possible threats from the security forces with no expectation of justice and redress.

In 2023, after the government announced its plans to establish a new commission, numerous organizations representing conflict victims and civil society groups—especially in the most conflict-affected Northern and Eastern provinces—joined four separate joint statements rejecting the government’s approach and instead said it should act upon the work of previous commissions, while “building confidence” by ending ongoing abuses.

The current government, like its predecessors, has a record of making human rights pledges to deflect international pressure while continuing abuses and blocking meaningful reform and accountability. Many victims see the proposed commission as an attempt to persuade UN Human Rights Council member countries to end the council’s scrutiny, a view supported by statements from President Ranil Wickremesinghe’s office.

The proposed commission resembles the 2010-2011 Lessons Learnt and Reconciliation Commission. After this commission failed to achieve its stated objectives, the Human Rights Council in 2015 passed the first of a series of important resolutions to advance accountability for atrocity crimes committed in Sri Lanka.

From 2015 to 2020, when Wickremesinghe was prime minister, the Human Rights Council adopted resolutions with the endorsement of Sri Lanka that envisaged a “hybrid” justice mechanism including both foreign and Sri Lankan staff. In 2021, after a new Sri Lankan government repudiated this process, the council established an international evidence-gathering project to support possible future prosecutions abroad.

Meanwhile, the current government has continued to repress fundamental rights. In January 2024, the government presented two bills in parliament that threaten the right to freedom of expression. According to the UN Office of the High Commissioner for Human Rights, the Anti-Terrorism Bill, to replace a law that has long been used to target minorities and perceived government opponents, “grants wide powers to the police – and to the military – to stop, question and search, and to arrest and detain people, with inadequate judicial oversight.”

The Online Safety Billadopted by parliament on January 24, “will give authorities unfettered discretion to label and restrict expressions they disagree with as ‘false statements,’” the high commissioner’s office said. New speech-related offenses carry lengthy prison terms.

The government has also continued to target those campaigning for truth and accountability. On January 5, the authorities arrested and detained Sivananthan Jenita and Meera Jasmine Charlesnise, who have campaigned for years seeking answers after the enforced disappearance of their relatives for protesting against President Wickremesinghe during his visit to the north. In December, nine ethnic Tamils were held under anti-terrorism legislation for commemorating war dead.

Government agencies continue to appropriate Hindu and Muslim religious sites and lands occupied by Tamil and Muslim communities on a variety of pretexts, in some cases to convert the sites into Buddhist temples or transfer them to members of the majority community. These actions violate the right to freedom of religion or belief and are in direct opposition to the government’s purported goals of promoting “reconciliation” and addressing the causes of conflict, Human Rights Watch said.

The new commission’s proposed mandate would overlap in ill-defined ways with existing but nonperforming agencies, including the Office of Reparations, established in 2018, and the Office of Missing Persons, established in 2017. On January 9, Sri Lanka’s parliament passed legislation to formalize yet another institution with an ostensibly similar purpose, the Office of National Unity and Reconciliation, which was created in 2015.

Concerned governments should decline to fund or endorse the new Commission for Truth, Unity and Reconciliation, because it would not uphold Sri Lanka’s international obligations to address impunity or provide redress and does not have the support of victims and affected communities. Instead, they should work to ensure that the Human Rights Council mandate is renewed and enhanced to pursue accountability for past crimes and help end ongoing abuses.

“The actions of President Wickremesinghe’s government to silence dissent, protect and promote alleged rights abusers, and discriminate against minority communities give no grounds to believe that the latest ‘reconciliation’ plan will turn out differently from past commissions,” Ganguly said. “The government should start dealing with the past in good faith, by using the evidence already collected to advance accountability and stop persecuting victims and their families who demand justice.”

Human Rights Watch

Today’s (Jan 29) weather: Showery conditions to continue further

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By: Isuru Parakrama

January 29, Colombo (LNW): Showers will occur at times in Eastern and Uva provinces and in Polonnaruwa, Matale and Nuwara-Eliya districts, and several spells of showers may occur in Anuradhapura, Mullaitivu and Hambantota districts, the Department of Meteorology said in its daily weather forecast today (29).

Showers or thundershowers will occur at several places in Western and Sabaragamuwa provinces and in Galle, Matara and Kandy districts after 2.00 p.m., the statement added.

Fairly strong winds about 40 kmph can be expected at times over the Central, Uva and Northwestern provinces and Hambantota district.

The public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off the coast extending from Trincomalee to Hambantota via Batticaloa. Showers or thundershowers may occur at few places in the sea areas off the coast extending from Matara to Colombo via Galle during the evening or night.
Winds:
Winds will be north-easterly and wind speed will be (30-40) kmph. Wind speed may increase up to 60 kmph at times in the sea areas off the coasts extending from Colombo to Mannar via Puttalam and from Hambantota to Pottuvil. Wind speed may increase up to 50 kmph at times in the other sea areas around the island.
State of Sea:
The sea areas off the coasts extending from Colombo to Mannar via Puttalam and from Hambantota to Pottuvil can be rough at times. In other sea areas around the island can be fairly rough at times.

Suspension on SLC lifted

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January 28, Colombo (LNW): The International Cricket Council (ICC) Board has lifted the suspension of Sri Lanka Cricket (SLC) with immediate effect.

SLC was suspended in November for being in serious breach of its obligations as an ICC Member, in particular, the requirement to manage its affairs autonomously and ensure that there is no government interference in the governance, regulation and / or administration of cricket in Sri Lanka.

The board have been monitoring the situation since the suspension and are now satisfied that SLC are no longer in breach of membership obligations.

Reconciliation Cannot Be Achieved Through A Majority Vote

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The manner in which the Online Safety Bill was passed in parliament is a matter of grave concern.  The bill was passed without taking a vote at the third reading even though the opposition called for a vote.  In addition, the opposition has alleged that a number of amendments to the original bill required by the Supreme Court had not been included.

The National Peace Council calls on the government to heed the opposition which has called for the Online Safety bill not to be signed into law by the Speaker of Parliament due to these infirmities. The proroguing of parliament by the president provides an opportunity to ensure that all amendments are included in the law.

We welcome Speaker Mahinda Yapa Abeywardena’s announcement that the Attorney General’s Department will investigate whether all amendments inserted during the legislative process were properly implemented in accordance with the Supreme Court directives. The right to free expression is a fundamental democratic right that if vitiated would place the democratic process in jeopardy.

In this context, NPC wishes to address the Commission for Truth, Unity and Reconciliation (CTUR) bill which was gazetted on January 1 this year.  We call on the government not to rush through with this bill in the manner of the Online Safety bill or the Office for National Unity and Reconciliation (ONUR) bill which was similarly pushed through parliament on January 9 this year without heeding the views of the opposition or civil society.

It is a matter for concern that the draft law with respect to the CTUR has been prepared and gazetted even before the submission of the report of the Presidential Commission of Inquiry to investigate the findings of preceding Commissions and Committees headed by Justice A H M D Nawaz.

In the synopsis of the Nawaz Commission report issued in February last year, the Commissioners referred to a Truth and Reconciliation Commission of Sri Lanka and stated that the contours of the commission would be set out in due course when the Final Report was submitted. The government’s urgency in rushing through with the law pertaining to the CTUR, without even waiting for the Nawaz Commission to submit its report, and with only minimal consultation with opposition political parties and civil society suggests a motivation that goes beyond reconciliation.

There seems to be a desire to obtain the support of the international community by producing the TURC law, even though it may not have the support from the aggrieved ethnic and religious minorities for whom it is meant.

Like ONUR, the purpose of the proposed truth commission (CTUR) is to strengthen the national reconciliation process.  Therefore, it needs to be based on consensus of the government and parties representing the opposition and ethnic and religious minorities rather than being steamrolled by a majority vote in parliament. NPC calls on the government to discuss the proposed CTUR law with the opposition and civil society and obtain their consensus before proceeding to pass it through a vote in parliament. 

National Peace Council of Sri Lanka

Expolanka records resilience in Q3 FY24, navigating macroeconomic challenges

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By: Staff Writer

January 28, Colombo (LNW): Expolanka Holdings PLC announced its financial results for the third quarter ending 31 December 2023, delivering a resilient performance, and leveraging its strengths despite global economic headwinds and uncertainty.

The Group reported a Revenue of Rs. 66.8 billion for the quarter and Rs. 183.9 billion for the nine months ending 31 December 2023. Gross Profit stood at Rs. 10.9 billion for the quarter, summing up to Rs. 34.2 billion for the nine-month period.

A Net Loss of Rs. 5.1 billion was recorded for the quarter, contributing to a nine-month Net Loss of Rs. 12.3 billion.

Global trade faced challenges due to tightening monetary policies, high inflation, geopolitical tensions, trade protectionism, and elevated energy prices. These factors contributed to uncertainty, reduced consumer spending, and lower demand conditions.

Despite subdued global trade and fluctuating freight rates, Expolanka’s Logistics sector sustained its customer base and welcomed new clients, ending the quarter with Rs. 64.4 billion in Revenue and a Gross Profit of Rs. 10.2 billion.

The sector experienced a Net Loss of Rs. 5.2 billion for the quarter. The sector also reported a revenue of Rs. 177 billion, a Gross Profit of Rs 32.1 billion and a Net Loss of Rs. 12.7 billion for the nine months of the financial year.

A drop in volumes and a steep decline in freight rates have impacted Revenue and Gross Profit, resulting in Operating Losses.

Margins faced pressure due to declining freight rates and volumes. Profitability decline was visible across both Air and Ocean Freight and was more pronounced in the latter due to experiencing visible freight rate corrections during the year.

The Group reported that strategic investments to enhance domestic capabilities and recent international acquisitions namely, Trans American Global and the LEI Group, have performed to satisfaction whilst integration efforts have moved forward gradually.

With the company’s primary focus on strengthening customer relationships, EFL was able to retain all its core customers whilst witnessing growth in new customers.

 The strategy of enhancing service offerings and domestic logistics capabilities have had a positive impact both commercially and financially, establishing the group’s long-term vision as a global logistics company.

Additionally, EFL was able to leverage its strong network presence, market know-how, infrastructure capabilities and its experienced leadership team to bring to bear the exceptional value-added service offering to its customers.

However, cost control initiatives are underway to improve profitability going forward while the recent acquisitions position the company well for long term growth.

The Leisure sector delivered strong results with Rs. 1 billion Revenue, a Gross Profit of Rs. 655 million and a Profit-After-Tax of Rs. 200.4 million. Robust corporate travel sales and recovering inbound and leisure travel segments boosted performance. Efficient operations and service excellence remain key success factors for the organization.

The Investment sector reported a steady quarter with Rs. 1.3 billion in Revenue and a Gross Profit of Rs. 33.8 million, reflecting stabilization in export operations and gradual progress in the IT business.