In a continued tradition of support, Army Commander Lt. General Vikum Liyanage extended a generous donation to the Sri Dalada Maligawa during the vibrant Esala Perahera festival in Kandy. On the 11th of August, Lt. General Vikum Liyanage symbolically handed over a substantial offering of copra, weighing over 15,000 kg, to Pradeep Nilanga Dela, the esteemed Diyawadana Nilame.
For nearly a decade, the Sri Lankan Army has played a pivotal role in ensuring the brilliance of the Perahera festival, an event deeply rooted in cultural significance. Since 2014, the Army has annually contributed the copra required to illuminate the traditional streets during the magnificent procession. The copra, meticulously prepared at the Vijayabahu Infantry Regiment situated in Boyagane, Kurunegala, has become an essential component of the festival’s splendor.
Following the copra presentation, Lt. General Vikum Liyanage and his entourage paid their respects at the revered Dalada Maligawa, seeking blessings for the nation. A gesture of mutual appreciation ensued, as Pradeep Nilanga Dela, the Diyawadana Nilame, presented a commemorative gift to the Army Commander in recognition of the unwavering decade-long commitment to this noble cause.
Notable attendees included Kandy District Secretary Chandana Tennakoon, who joined in commemorating this enduring partnership between the Sri Lankan Army and the sacred Esala Perahera festival. As the tradition continues, the annual contribution of copra by the Army remains a luminous example of the harmonious blending of culture and service.
According to the CB press release on 8 August, the CB has launched a dedicated web portal of its Regional Development Department (RDD) to signifies its strategic orientation towards financial inclusion initiatives whereas the web portal has been developed with financial assistance of the International Finance Corporation(IFC) press_20230808_cbsl_launches_the_web_portal_of_regional_development_department_e_0.pdf.
The purpose of this article is to show that the CB senior management has no idea of financial inclusion of the standard version or financial services and literacy required for Sri Lanka at this juncture for the recovery of the bankrupted government and economy.
Highlights of the press release
IFC is a longstanding partner of the CB in promoting financial inclusion since 2018.
This web portal is part of the overall National Financial Inclusion Strategy (NFIS) for Sri Lanka in which the IFC played a significant role to make financial services more accessible, efficient, and affordable for all households and businesses in the country.
The CB under its new legislation is now vested with the responsibility of promoting financial inclusion. Therefore, the web portal is an important step towards promoting financial inclusiveness in the country.
This web is expected to facilitate all stakeholders of the country through dissemination of information on the financial inclusion efforts of the CB.
The web provides an interactive experience to its users with a user-friendly interface and equipped with financial literacy materials and tools such as publications, Training-of-Trainers (ToT) modules, quizzes and games to enhance financial knowledge, attitude, and behavior of users supporting to make informed and rational financial decisions.
The web also expected to act as a shared platform for all stakeholders to access information and collaborate in their financial literacy initiatives. This will complement the upcoming Financial Literacy Roadmap for Sri Lanka to be implemented from 2024.
Few comments on the contents of the press release
This press release starts by mentioning of financial inclusion role of the CB but ends by talking of its financial literacy work. Therefore, the CB has got mixed up between financial inclusion and financial literacy.
Therefore, the CB thinks that its work for financial inclusion is a few micro and SME credit schemes operated by the RDD and ad-hock financial literacy work carried out by the RDD and the CB’s 6 regional offices. The CB’s literacy programmes stated in the web are mostly about unlawful pyramid investments and deposit-taking. The CB officials have no skills to teach the public on how to open and run SMEs.
The web provides only some outdated financial literacy materials of bureaucratic nature prepared by the CB and IFC. None can understand how these materials promote financial inclusion in the country.
What is financial inclusion?
Financial inclusion generally means the spread of formal sector financial services across persons and households at affordable prices in order to improve their economic activities and living standards.
According to the Wikipedia “Financial inclusion is defined as the availability and equality of opportunities to access financial services. It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products.”
According to Investopedia “Financial inclusion refers to efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size. Financial inclusion strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their lives. It is also called inclusive finance.”
However, according to the CB’s new web, financial inclusion is about the CB’s ad-hoc micro and SME credit schemes and financial awareness programmes. Therefore, the new initiative with the IFC as stated is only some bureaucratic work of the CB which has no use to the general public to have the access to modern formal sector finance and enjoy an inclusive growth in the country.
Can the CB offer financial inclusion functions under the new Central Bank Act?
Among powers, functions and duties of the CB, the new Act includes “promote financial inclusion in Sri Lanka.” However, neither a definition nor policy instruments are provided for in the Act.
In fact, the CB is prevented from opening its branches and implementing refinance credit schemes on CB funds.
Further, powers to regulate bank interest rates and credit are not permitted in the new Act. However, the repealed Monetary Law Act contained immense powers to fulfill credit/monetary needs of the country and specific sectors where the CB used them extensively.
A central bank can promote financial inclusion only through the monetary policy and related regulatory powers. However, the monetary policy authorized in the new Act does not provide for financial inclusion related policy instruments.
Therefore, the CB will have to close this inclusion web portal very soon as key activities presented therein such as refinance schemes and regional offices are unlawful under the new Act.
Some concerning observations
The press release states that the IFC which financed the development of this web has been a longstanding partner of the CB since 2018 in promoting financial inclusion in the country. However, there is no record of any such financial inclusion work. Especially, restructuring and recovery of Sri Lankan economy bankrupted by the debt and foreign currency crisis require financial inclusion strategies that enable the government to sustain its debt stock and businesses and households to resume their economic activities. However, neither the CB nor the IFC has launched any such strategies so far despite their financial inclusion rhetoric.
It is difficult to understand why the IFC had to finance the development of this rudimentary web portal despite the CB’s IT capacity and financial health with CB’s net profit of Rs. 235 bn retained in the last year without transferring to the cash-strapped government whereas the CB printed Rs. 25 bn for just its operational expenses. The development of this type of basic web will not cost more than Rs. 200,000 to a local IT person if the CB’s IT Department is not technically competent.
Nobody is aware of NFIS referred in the press release and articulated in the web. It is a puzzle how such national strategies connected with foreign parties prevail unknown to the general public.
I do not understand how the CB teaches financial literacy on risky pyramids and investments to the general public while the CB itself looses billions of own funds by investing in dealers regulated by itself and prints money to cover such daylight losses including payment of exorbitant rates of returns around 29% to own employee retirement funds where the public provident funds receive 9%.
According to the CB Annual Report 2022, inclusive MSME credit schemes referred to in the web do not bear any significance. They all are 12 govt funded schemes and 7 CB funded schemes which disbursed only Rs. 16 bn catering to about 62,000 beneficiaries in 2022. Of those, nearly 93% was comprised of the two old, highly bureaucratic schemes, i.e., Comprehensive Rural Credit Scheme and Saubagya Loan Scheme. It is well known how the CB top management opposed refinance of Rs. 200 bn during Corona pandemic while all central banks printed money to protect supply chain finance. Therefore, I do not understand the role of such trivial credit schemes in the financial inclusion of the present bankrupted and debt-trapped economy.
I do not understand how will the CB’s new monetary policy of daily and short-term liquidity management support provided to banks, finance companies, leasing companies and private equity and bond investors based on policy interest rates will promote financial inclusion for the recovery of the bankrupted economy.
Therefore, it is the duty of the people’s governments to ensure that the country’s central bank operates to provide the public with the access to contemporary monetary needs in line with required improvements in living standards. This is the meaning of financial inclusion. Otherwise, the country’s independent central bank will be another bank of a few rich businessmen who run the social market economy of Sri Lanka lingering in the bankruptcy. The general public will soon question the purpose of the independent central bank with exclusive monetary policy carried out to provide the liquidity only to profit-frenzied money dealers in the country.
Overall, present CB management resorting to such media shows while defaulting on its core functions and pubic duties should be a matter of shame to those who are interested in central bank functions in the public interest.
(This article is released in the interest of participating in the professional dialogue to find out solutions to present economic crisis confronted by the general public consequent to the global Corona pandemic, subsequent economic disruptions and shocks both local and global and policy failures.)
P Samarasiri
Former Deputy Governor, Central Bank of Sri Lanka
(Former Director of Bank Supervision, Assistant Governor, Secretary to the Monetary Board and Compliance Officer of the Central Bank, Former Chairman of the Sri Lanka Accounting and Auditing Standards Board and Credit Information Bureau, Former Chairman and Vice Chairman of the Institute of Bankers of Sri Lanka, Former Member of the Securities and Exchange Commission and Insurance Regulatory Commission and the Author of 12 Economics and Banking Books and a large number of articles published.
The author holds BA Hons in Economics from University of Colombo, MA in Economics from University of Kansas, USA, and international training exposures in economic management and financial system regulation)
The Sectoral Oversight Committee on An Open & Accountable Government obtained the ideas from the Venerable Theros at the Committee meeting held.
Obtaining of such ideas took place at the Sectoral Oversight Committee on An Open & Accountable Government which was held in Parliament recently (03) under the Chairmanship of Hon. Jagath Kumara Sumithraarachchi.
The Venerable Theros who was present at the Committee meeting held, presented their views and suggestions pertaining to the legislations to be enacted and the legislations to be amended in order to construct an open and accountable government.
Moreover, the Venerable Theros pointed out the need to prepare a national policy for all sectors of the country. They pointed out that it is important for this country to have a national policy which is implemented continuously by every government without confusing political policy and national policy.
The Venerable Theros also pointed out the need to take legal measures to act on the hate speech that are brewing regarding the Venerable Theros to fulfill various needs of needs of non-religious organizations.
The Chair of the committee said that the committee is working on possible intervention regarding these issues. He also pointed out that a report related to this proposed proposal will be submitted to the Parliament.
The most Venerable Aanamaduwe Dhamma Dhassi Thero, Pahamune Sumangala Thero, Dr. Waleboda Gunasiri Thero, Senior Professor Kiwulegedara Narada Thero, Senior Professor Induragare Dhammarathana Thero, Professor Pinnawala Sanghasumana Thero, Professor Nambiriththankadawara gnanarathana Thero, Professor Madagoda Abhayatissa Thero, Dr. Kumbalgoda Dhammaloka Thero, Kandegama Deepawanshalankara Thero, Akuratiye Nanda Thero were present at the Committee meeting held.
Also, Members of Parliament Hon. Udayana Kirindigoda, Hon. Jayantha Weerasinghe, Hon. Madhura Withanage were present at the Committee meeting.
In recent news, the Sri Lanka Association of Animal Production has proposed that local egg prices could potentially be reduced to Rs. 35 per egg, provided the government allows the importation of maize. This suggestion comes in the wake of significant developments in the egg market following the removal of the maximum retail price (MRP) by the government.
Ajith Gunasekara, the President of the Association, highlighted the positive impact of lifting the MRP on egg sales, leading to increased consumption. He further disclosed that measures have been initiated to offer frozen chicken at a price of Rs. 1,250 per kilogram.
The Consumer Affairs Authority (CAA) had earlier set price limits for eggs, specifying Rs. 44 and Rs. 46 for white and brown eggs, respectively, per egg. Additionally, the maximum prices for 1 kilogram of white and brown eggs were set at Rs. 880 and Rs. 920, respectively. However, recognizing the ineffectiveness of these price controls and the persisting shortage of eggs in the market, the CAA lifted the price cap on eggs, effective from July 26.
In an interesting development, eggs imported from India, previously designated for bakery use, are now available to consumers at a rate of Rs. 35 per egg in Lanka Sathosa outlets and Rs. 40 per egg in supermarkets.
The Association’s proposal to lower local egg prices hinges on the government’s decision regarding maize importation. This crucial linkage underscores the intricate web of factors influencing the egg market in Sri Lanka and highlights the potential for a shift in affordability for consumers.
As discussions and decisions unfold, the dynamic interplay between imported eggs, local production, and feed imports remains at the forefront of considerations, shaping the trajectory of egg prices and availability in the country.
In a recent development, a Sri Lankan youth’s attempt to escape to France using a counterfeit visa has been foiled at the Bandaranaike International Airport. Reports indicate that the individual, who had paid Rs. 3.5 million to a Ugandan woman, was apprehended as he sought to embark on his journey via Dubai.
Lankadeepa, a local news source, shed light on the intricate details of the case. The youth’s intentions to travel to France were facilitated by the acquisition of a forged visa, which he obtained with the assistance of a Ugandan woman. This partnership involved a significant financial transaction, whereby the youth paid a substantial sum to secure his illicit travel arrangements.
Authorities from the Department of Immigration and Emigration intercepted the suspect at the Katunayake Airport. The apprehended individual, a 24-year-old resident of Matara, was previously employed at a casino based in Colombo. His recent stint at a casino in Uganda two months prior played a pivotal role in the unfolding of this case.
It has come to light that the youth resorted to selling his parents’ land, jewelry, and even his own motorcycle to gather the required US $3000 for the forged visa. This desperate act illustrates the lengths to which he went to fulfill his illicit aspirations.
The collaboration between the Sri Lankan youth and the Ugandan woman highlights the cross-border nature of this incident, with individuals from different countries coming together for unlawful purposes. The successful apprehension underscores the vigilance and diligence of immigration officials in safeguarding the integrity of international travel and immigration procedures.
As this case continues to unfold, it serves as a reminder of the challenges posed by fraudulent activities in the realm of international travel and the critical role that border control and law enforcement agencies play in maintaining the security and legality of such processes.
The Colombo High Court marked a significant step on Friday, August 11th, as the reading of charges against Naufer Mawlawi and 23 co-defendants related to the 2019 Easter Sunday terror attacks came to an end.
In a session presided over by a three-judge panel, comprising Justices Damith Thotawatte, Amal Ranaraja, and Navaratne Marasinghe, the charges were solemnly read out in the presence of the accused individuals.
The case, filed by the Attorney General, encompasses a total of 24 defendants, including prominent names such as Naufer Mawlawi, Sajid Mawlawi, Mohammed Milhan, Sadiq Abdullah, Adam Lebbe, Mohammed Sanasdeen, and Mohammed Rizwan. These individuals collectively face a staggering 23,270 charges, encompassing accusations of aiding, abetting, and conspiring in connection with the harrowing 2019 terror attack.
Under the framework of the Prevention of Terrorism Act (PTA), the charges span a broad spectrum of allegations, ranging from conspiring to commit murder and aiding and abetting to the collection of arms and ammunition, and even attempted murder.
With this significant phase completed, the legal process now gears towards the next steps. The forthcoming hearing for this case is scheduled for October 10, where the continued proceedings will continue to unfold.
In a separate development, the court has issued summons to former CID Director, DIG P. Ampawila, requiring his presence before the court on the aforementioned October 10 date. This summons underscores the comprehensive nature of the investigation and the breadth of individuals involved in the legal process.
The culmination of the charges reading is a pivotal moment in the pursuit of justice and accountability following the tragic events of the 2019 Easter Sunday attacks. As the legal process unfolds, it serves as a reminder of the importance of a thorough and meticulous approach to address such profound incidents and their far-reaching implications.
In a recent address to the Parliament, State Finance Minister Dr. Ranjith Siyambalapitiya clarified the regulations surrounding the seizure of vehicles by banks and leasing companies due to non-payment of dues. The Minister emphasized that such seizures can only occur with the explicit consent of the current owner of the vehicle.
Addressing concerns related to defaulted installment payments, Minister Siyambalapitiya underscored that vehicles are not subject to seizure under the Parate law. He made these statements during a parliamentary session, shedding light on the intricacies of the Parate law.
Minister Siyambalapitiya elaborated that the power of Parate enables a bank or financial institution to seize property solely if the corresponding loan amount surpasses Rs. 5 million. He stressed the importance of this threshold, which serves as a safeguard against undue property seizures.
Drawing attention to the financial landscape, the State Minister revealed that the percentage of non-performing loans within banks has escalated from 4.8 percent in January 2021 to a concerning 13.4 percent by June 2023. He deemed this situation as highly significant and cautioned against relinquishing Parate powers, as it significantly curtails a bank’s ability to recover debts. Such a reduction in recovery potential heightens the risk of bankruptcy due to the amplified credit risk.
However, Minister Siyambalapitiya clarified that property seizure through Parate powers is pursued as a last resort when other avenues for debt recovery have been exhausted. The banks follow a structured internal process, which may involve measures like loan rescheduling and debt restructuring before resorting to such actions. The Minister emphasized that Parate-driven property seizure primarily targets deliberate loan defaulters and entrepreneurs unable to revive their businesses.
Highlighting recent statistics, Minister Siyambalapitiya revealed that the Parate law had been implemented by 19 banks and financial institutions on 173 occasions between January and June of the current year. These actions were taken in relation to loans amounting to a total of Rs. 15 billion, signifying the significant role of Parate powers in debt recovery efforts.
In conclusion, Minister Siyambalapitiya’s address outlined the careful and measured utilization of Parate powers in seizing property for debt recovery, underlining the importance of striking a balance between creditor rights and borrower protection.
Supreme Court dismisses the Fundamental Rights petition which was filed seeking an order against the Govt’s decision to cap the interest rate of the EPF at 9% in line with the Domestic Debt Optimisation (DDO) process, without granting leave to proceed.
Former UN Expert on Debt and Human Rights Juan Pablo Bohoslavsky asserts that linking state economic policies in debt restructuring with human rights is important in easing the burden of repayment of the Sri Lankan working class: analysts interpret this statement as a suggestion to provide an across-the-board write off of entrepreneur and personal debts on the same basis as that applied by the Govt to the public debt.
Prisons Dept says the country’s prison population had grown rapidly since the start of 2023: asserts there are about 19,000 suspects in remand custody and about 10,000 prisoners, totalling about 29,000, although there is room for only 13,241 inmates within the prison system.
Party Leaders decide to hold a single-day debate on Sri Lanka Cricket on August 24 and the debate on the No-Confidence Motion against Minister of Health Keheliya Rambukwella in the first week of September.
CEB GM says the family which owns the tea estate through which power cables have to be laid to connect the Southern Province to the main transmission line of the CEB, have given their consent to the move without claiming compensation: also says that as a consequence, the CEB can complete the necessary work within 6 days.
Lottery ticket sellers lament that after lottery ticket prices were doubled from Rs.20 to Rs.40 per ticket, the ticket sales have suffered considerably.
Vavuniya High Court Judge Manikkavasagar Ilancheliyan sentences Chief Inspector Sugath Roshan Sanjeewa, who served as the Cheddikulam Police OIC at the time, to 6 months imprisonment and suspended it for 7 years, for concealing evidence in a car accident caused by former MP and journalist Sri Ranga: also orders that Rs.500,000 be paid as compensation to the wife of the Police Sergeant who was killed.
The SL Embassy in Moscow initiates direct employment opportunities for skilled migrant workers in the Russian Federation, in collaboration with the Foreign Employment Agency: under this initiative, the first group consisting of 58 seamstresses arrive in the Russian Federation.
SJB MP Buddhika Pathirana calls for an in-depth research to be conducted on the mythological King Ravana: notes that despite the absence of archaeological evidence, King Ravana holds a revered status as a deity among certain Sri Lankans; asserts that such research could contribute to enhancing public perceptions about the King.
One of the best left arm bowlers produced by Sri Lanka, Daya Sahabandu, 83, passes away: he was a medium paceman and the best left-arm leg spinner of his time, and also opened the bowling for Sri Lanka.
Glad to see justice being served for the former Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
We are glad that President’s Counsel (PC) Dilrukshi Dias Wickramasinghe, a former Director General of the CIABOC, and a Deputy Additional Solicitor General of the Attorney General’s (AG) Department, who was under suspension based on an allegation that involved an audio recording, has seen some form of justice, even after some time.
We consider the fact that the Public Service Commission (PSC), which investigated the allegations against Wickramasinghe, has decided to acquit her of the related charges, as an encouragement to the public officials who follow the law according to their conscience.
When considering the allegations levelled against Wickramasinghe, it is reflected that certain insidious forces had built up an unlimited power base in the country in the past. It is also possible to understand how such forces were attempting to deprive the country’s leading Commissions of their independence. It is also a sinful act for such forces to prevent her from being promoted by fabricating allegations.
The decision given in relation to Wickramasinghe can be considered as an opportunity to reaffirm the just operation that people expect from independent commissions, which is truly a progressive situation.
It is the responsibility of every responsible party in the country to ensure that such situations do not happen again in our country. We also emphasise that it is the responsibility of the relevant institutions to serve justice Wickramasinghe, who was subjected to great injustice due to the actions of opportunistic forces.
We kindly request the Speaker of the Parliament and the Chaurman of the Constitutional Council (CC), Mahinda Yapa Abeywardena, and CC members to appoint Commissions that have not yet been appointed.
Karu Jayasuriya Chairman National Movement for Social Justice 11.08.2023
Several spells of showers will occur in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts.
Showers or thundershowers will occur at several places in Eastern, Uva and Northern provinces during the evening or night.
Mainly fair weather will prevail elsewhere over the Island.
General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
