Colombo (LNW): Minister Bandula Gunawardena has announced plans to convert the Sri Lanka Rupavahini Corporation (SLRC) and the Sri Lanka Broadcasting Corporation (SLBC) into a public company due to continuous losses incurred by both entities.

The decision was disclosed during a meeting of the Ministerial Consultative Committee on Mass Media, where Minister Gunawardena presented financial statistics from 2015, revealing losses of Rs. 277 million for SLRC and Rs. 457 million for SLBC in 2023.

Considering the financial challenges and the difficulty of obtaining funds from the Treasury, the government plans to appoint a committee to oversee the conversion.

Additionally, concerns were raised about inadequate publicity for government development projects in state media, prompting Minister Gunawardena to emphasise the need for public media to highlight public inconveniences and project-related facilities.

The Sri Lanka Press Council has been instructed to prepare a report on regulating media propaganda that may negatively impact social culture and personal health.

Colombo (LNW): The people of Sri Lanka should base their decisions on proper data and facts and not on noise, lies and propaganda, and Sri Lanka cannot afford another political mistake like that of January 2015, said former President and Leader of the Sri Lanka Podujana Peramuna (SLPP) Mahinda Rajapaksa, in his official response to the recent Supreme Court ruling on the 2019 – 2021 administration being held accountable for the current economic crisis in the country.

In a statement, the former President emphasised that during his nine years as President, the economy showed robust growth, averaging 6 per cent annually, leading to a threefold increase in Sri Lanka’s per capita GDP from US $ 1,242 in 2005 to US $ 3,819 in 2014.

He highlighted that the debt to GDP ratio was a healthy 69 per cent in 2014, a significant improvement from 90 per cent in 2005. Rajapaksa noted that after he left office, economic growth declined, reaching negative levels in 2019.

He pointed out that Sri Lanka’s debt increased substantially, with total outstanding external debt rising to US $ 54,811 million by the end of 2019.

Whilst avoiding the 4/5 Supreme Court majority’s view on paying attention as to whether ‘the conduct of the respondents‘ of the Fundamental Rights (FR) petition filed against the Gotabaya Rajapaksa Administration ‘during the relevant period directly contributed to the crisis,‘ the former President went on attributing the economic decline to mismanagement and criticising the accumulation of foreign commercial debt, particularly International Sovereign Bonds (ISBs), during the post-2015 period.

Rajapaksa urged the public to base decisions on accurate data and facts, emphasising the need to avoid political mistakes like those in January 2015.

Full Statement:

The origins of Sri Lanka’s economic crisis

A heated discussion is now taking place about those responsible for the present economic crisis. Central Bank reports will show that during my nine years as President, economic growth averaged 6% a year during the four war years from 2006 to 2009. This increased to 6.8% in the five post-war years from 2010 to 2014. Hence Sri Lanka’s per capita GDP increased threefold from USD 1,242 at the end of 2005 to USD 3,819 by the end of 2014. The contribution that my government made to Sri Lanka’s per capita GDP was well over twice that of all other post-independence governments from 1948 to 2005 put together. Though the per capita GDP came down to USD 3,474 in 2022 as the pandemic caused the economy to contract, that statement remains valid to this day.

The debt to GDP ratio was a very healthy 69% at the end of 2014 having being brought down from 90% at the end of 2005. The All Share Price Index rose from 1,922 at the end of 2005 to 7,299 by the end of 2014. This economic boom was achieved despite the war, the global food crisis of 2007, the global financial crisis of 2008-2009 and the highest crude oil prices in world history. Crude oil cost an average of USD 74 per barrel throughout the entire period from 2006 to 2009 and an average of USD 103 from 2010 to 2014. The IMF Country Report No. 14/285 of September 2014 stated firstly that Sri Lanka’s “Macroeconomic performance has generally exceeded expectations”. Secondly that “Sri Lanka has made notable advances in recent years, and appears to be on its way to joining the ranks of upper middle income countries”. Thirdly that “Sri Lanka’s economic growth has been among the fastest in Asia’s frontier and developing economies in recent years”.

Hence the fact that I left behind a very robust economy in January 2015 is well documented. After I was voted out, the economic growth rate dropped to 4.2% in 2015 and ended up in the negative range at 0.2% below zero by 2019. Sri Lanka’s total outstanding external debt had increased by nearly 28% from USD 42,914 million at the end of 2014, to USD 54,811 million by the end of 2019. The debt to GDP ratio which had been brought down to 69% by the end of 2014, had increased to nearly 82% by the end of 2019. The All Share Price Index declined from 7,299 at the end of 2014 to 5,990 by the end of October 2019. Yet during the entire five year period from 2015 to 2019 the average price of crude oil was USD 60 per barrel – the lowest in recent history.

There were no external reasons for Sri Lanka’s economic decline between 2015 and 2019. India and Bangladesh experienced average growth rates in excess of 7% and the Maldives over 6% during this period. Even developed countries like the USA and Germany experienced robust economic performance during those years. However, Sri Lanka’s average growth rate between 2015 and 2019 was just 3.5%, equal to the growth rate recorded in 2021 at the height of the pandemic. The accumulation of foreign commercial debt between 2015 and 2019 particularly in the form of International Sovereign Bonds (ISBs) was by far the worst disaster to befall us during that period.  

When I was defeated in January 2015, outstanding ISBs amounted to USD 5,000 million and it was amply covered by our foreign reserves of USD 8,208 million. However, between 2015 and 2019 outstanding ISBs increased threefold to USD 15,050 with borrowings of USD 2,150 million in 2015, USD 1,500 million in 2016, USD 1,500 million in 2017, 2,500 million USD in 2018 and USD 4,400 million in 2019. Of this, USD 2,000 million was used to rollover ISB’s taken during my tenure, thus the total amount in new ISB’s issued between 2015 and 2019 is USD 10,050 million. Despite the build-up of the stock of outstanding ISBs to USD 15,050, Sri Lanka’s total foreign reserves was just USD 7,642 million at the end of 2019.

Thus, when I became Prime Minister again in November 2019, our government inherited an economy that was already on its last legs. It was in this weak and vulnerable situation that the Covid-19 pandemic hit Sri Lanka in early 2020 – the consequences of which needs further discussion. In any discussion of the economy, it is vital to note that the per capita GDP is the most fundamental economic indicator used to judge the economic situation of a country and the contribution of my 2006-2014 government to increasing Sri Lanka’s per capita GDP is more than double that of all other post- independence governments put together. The people of this country should base their decisions on proper data and facts and not on noise, lies and propaganda. Sri Lanka cannot afford another political mistake like that of January 2015. 

Mahinda Rajapaksa M.P.
Leader
Sri Lanka Podujana Peramuna

Colombo (LNW): Ambassador Dhammika Kumari Semasinghe recently presented Letters of Credence, officially accrediting her as Sri Lanka’s Ambassador Extraordinary and Plenipotentiary to the Republic of Bulgaria, a statement by the Sri Lankan Embassy in Warsaw said.

Her residence is based in Warsaw, Poland. The presentation ceremony took place at the Presidential Palace in Sofia on November 22, 2023, where Ambassador Semasinghe met with President Rumen Radev of Bulgaria.

During the meeting, Ambassador Semasinghe conveyed greetings and best wishes from President Ranil Wickremesinghe to President Radev. She expressed Sri Lanka’s commitment to revitalising bilateral engagement and explored avenues for increased cooperation in various sectors, including ICT, agriculture, labor, education, tourism, and manufacturing.

Ambassador Semasinghe highlighted opportunities for Bulgarian investors and businesses, emphasising Sri Lanka’s emergence as a vital logistics hub in the Indian Ocean region.

President Radev welcomed the accreditation of Sri Lanka’s envoy, considering it a timely impetus to reactivate bilateral ties. He proposed enhancing engagement at political, institutional, people-to-people (tourism and education), and business-to-business levels.

President Radev recognised Sri Lanka’s strategic commercial importance in the emerging economic landscape of Asia and expressed Bulgaria’s interest in strengthening and expanding relations with Sri Lanka.

As part of the discussions, President Radev expressed interest in Sri Lankan niche products and cuisine, envisioning their availability to the Bulgarian people. Ambassador Semasinghe shared details about the established Sri Lankan health-food store “Ceylon Spice” and the Sri Lankan restaurant “rCurry – Sri Lankan Cuisine” in Sofia, Bulgaria’s capital.

The formal ceremony was attended by Foreign Policy Secretary to the President of Bulgaria, Mr. Roussi Ivanov, and Deputy Minister of Foreign Affairs (career diplomat), Mr. Tihomir Stoytchev. Prior to the ceremony, Ambassador Semasinghe presented copies of Letters of Credence and Recall to Deputy Foreign Minister Tihomir Stoytchev at the Foreign Ministry.

During her official visit to Bulgaria, Ambassador Semasinghe had meetings with Mr. Tsvetan Simeonov, President of the Bulgarian Chamber of Commerce and Industry, Mr. Piyatissa Perera, proprietor of the Sri Lankan boutique “Ceylon Spice,” and the proprietor and team of the Sri Lankan restaurant “rCurry – Sri Lankan Cuisine.”

Ambassador Dhammika Kumari Semasinghe, currently serving as Sri Lanka’s envoy to Poland, boasts a 27-year diplomatic career, having served in various capacities in the political, economic, and multilateral sections of the Foreign Ministry. She has also held positions in Sri Lanka Missions in New York, Washington, DC, and New Delhi.

Ambassador Semasinghe holds a Master’s in International Public Policy from the School of Advanced International Studies (SAIS), Johns Hopkins University, Washington DC, USA. She began her undergraduate studies at the University of Peradeniya and completed her BA degree in International Relations and Public Policy at Swarthmore College, Pennsylvania, USA. Ambassador Semasinghe hails from Thimbiriyawa in the Nikaweratiya Pradeshiya Sabha in Sri Lanka’s North Western Province.

By: Staff Writer

Colombo (LNW): The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) revealed on Friday (24) a large-scale fraud of over Rs. 5 billion committed by suspects in connivance with officers of the Department of Motor Traffic before the Colombo Chief Magistrate’s Court.

The Commission filed a “B” report, presenting a jeep before Chief Magistrate Prasanna Alwis, alleging that the Toyota jeep had been registered under a lorry chassis number to evade paying customs duty and taxes to the State.

The bribery investigators informed the Magistrate that the first registration was made on 3 July 2007, while the jeep in Japan had not been imported to Sri Lanka at the time of registration.

The agency disclosed that they had taken into custody the Toyota jeep with registration number HG 5087, which was imported to Sri Lanka on forged documents, from a car dealership in Kurunegala.

Further investigations conducted by the Commission revealed that following the first registration made on 3 July 2003, the suspect had obtained revenue licenses for the Toyota jeep for subsequent years 2003, 2004, and 2005.

Their investigations unveiled that the schemers had imported more than 200 vehicles in this manner, causing a loss of more than Rs. 5 billion to the state.

The Commission presented the accused mastermind, M.D. Liyanage of No. 197, Dambulla Road, Kurunegala, before the Magistrate and informed the court that they are conducting further investigations into the scam. The Magistrate ordered the suspect to be remanded.

Meanwhile Government audit officers have unearthed a massive racket of registering vehicles by presenting forge documents to the department.

Several super luxury vehicles had been brought down to the country some times back.

The government audit has also conducted investigations into 23 more vehicles imported to the country, a senior official of the Finance ministry said.

The Sri Lanka Customs had to incur a heavy loss of millions of rupees due to the illegal importation of these super luxury vehicles while the government lost a large sum of money due to illegal vehicle registration.

It has been revealed that these vehicle registrations had been made by destroying files containing Customs and other documents of these vehicles and inserting false information into the computer system of the Motor Traffic Department, during the last few years.

Government auditors have made a request from the Commissioner General to hand over all the files pertaining to illegal vehicle registration. The issue of illegal vehicle registration was not new, the official said.

By: Staff Writer

Colombo (LNW): A massive five housing schemes with 1,996 housing units will be built in Colombo and suburbs with Chinese assistance for veteran journalists, versatile artistes and low income families.

These 1,996 housing units are scheduled to be built over a three-year period, with the Chinese Government giving major financial support of 552 million Yuan (about Rs. 24.48 billion) for this project.

A dispute between the Colombo Municipal Council (CMC) and the Urban Development Authority (UDA) over land has delayed the China-funded housing scheme for low-income city dwellers

Housing and Construction Minister Prasanna Ranatunga said both institutions should reach an understanding regarding the land in the Dematagoda area for the project to be implemented.

The UDA took over these two plots of land in 2019, but the CMC initiated legal action.However, the judiciary has informed both parties to settle the dispute amicably as two state bodies.

China has also requested the land dispute to be resolved before the implementation of the project. The matter has now been settled.

Construction is scheduled to begin in March. The construction is scheduled to begin in March 2024.

Of the total houses, 1,888 houses are for low-income individuals residing in Colombo, while 108 houses are for artists and journalists.

The agreement to build these houses was signed by Chinese Ambassador Chi Shenhong and Minister of Urban Development and Housing Prasanna Ranatunge.

The distribution includes 615 houses in Peliyagoda Dutugemunu Road, 586 houses in Dematagoda Elumaduwa Estate, 575 houses in Moratuwa Battery Estate, 112 houses in Maharagama Ambowatta, and 108 houses in Kottawa Orchard with the latter reserved for artists and journalists.

The Minister said the housing initiative stands as a testament to the long-standing friendship and collaborative efforts between China and Sri Lanka.

Ranatunga also acknowledged Chinese Government support during challenging times, highlighting their unwavering friendship.

In response, Chinese Ambassador Chi Shenhong reiterated commitment to supporting Sri Lanka’s social and economic development.

He highlighted significant contributions China has extended to Sri Lanka, exceeding 100 projects aimed at improving the economic and social well-being of the Sri Lankan people.

The ambassador reaffirmed China’s readiness to further assist Sri Lanka in enhancing the socio-economic status of its citizens.

The event witnessed the presence of key officials, including the State Minister of Urban Development and Housing Tenuka Widanagamage, Ministerial Secretary W.S. Satyainanda, UDA Chairman Nimesh Herath, Director General Prayasad Ranaweera, and a group of officials.

Colombo (LNW): The outcomes of the 2023 GCE Ordinary Level Examination are set to be disclosed within the upcoming two to three days, Education Minister Susil Premajayantha said.

In light of this, the Minister indicated that the 2024 GCE Ordinary Level Examination is anticipated to take place in either May or June next year.

He added that comprehensive preparations have been undertaken in anticipation of the upcoming examination.

The Education Minister shared these details during a media briefing.

The Secretary-General, The Rt Hon Patricia Scotland KC, will lead the Commonwealth delegation at the United Nations Climate Change Conference (COP28) in Dubai to call for accelerated action on the climate crisis in light of intensifying threats to small and vulnerable member countries.

Scheduled from 30 November to 12 December 2023, the annual summit comes just months after Commonwealth environment ministers committed to accelerating climate action at their inaugural meeting, held alongside the 78th Session of the United Nations General Assembly in New York City.

The Secretary-General, who will deliver at least 20 speeches across the summit, will urge negotiators to deliver a transformative outcome at the summit.

This includes accelerating efforts to implement national climate plans mandated under the Paris Agreement, using the findings of the ‘global stocktake’ report to increase ambition and action, and delivering an inclusive, operational Loss and Damage Fund.

Secretary-General Patricia Scotland will officially open the Commonwealth Pavilion COP28, which will host about 40 events across the two weeks, demonstrating the Commonwealth’s ability to convene vital dialogues between governments, experts, businesses, youth leaders and civil society.

She will also meet with leaders and ministers from Commonwealth member countries and across the international community, to advance progress on emissions, finance, adaptation, biodiversity, oceans, health, innovation and the green economy. 

‘No more delays’

Ahead of the summit, the Commonwealth Secretary-General said:

“The worst predictions of climate change have become a daily reality. In the Commonwealth’s most vulnerable countries, fertile lands are turning to dust, wells are running dry, storms and floods are overwhelming communities, and the ocean is rising.

“This represents not only a threat to the health, welfare and survival of millions of people, but to our collective stability and economic prospects.

“Yet as climate change advances, the gap on emissions, finance and justice has widened, while the window for action continues to narrow. COP28 must close that gap.

“Every day of delay makes life more dangerous, and makes climate action more complex, challenging and expensive. There can be no more delays, and no more excuses – this is the time for implementation.”

“The health of us all and of our planet rests on a 1.5°C degree cap on global warming,” she added. “We cannot lose sight of that objective, and I implore leaders at COP28 to renew their determination to deliver a bright, resilient, sustainable common world – now and for generations to come.” 

During the summit, the Secretary-General will call for increased support for small and vulnerable states, highlighting that despite ambitious pledges, these countries are receiving limited funds to mitigate, adapt to and build resilience against the impacts of climate breakdown.

She will also draw attention to the broader consequences of the climate crisis on economic growth, leading to high debt burdens, food insecurity, stressed resources, and impaired livelihoods for many of the 2.5 billion people living across the Commonwealth.

Commonwealth response

Secretary-General Scotland will inform delegates at COP28 about the Commonwealth’s programme, designed to assist its member countries – including 33 small states – in dealing with the challenges posed by the climate crisis.

These include:

• the Commonwealth Climate Finance Access Hub, which has mobilised US $310 million in climate finance for 17 vulnerable Commonwealth countries, with an additional US $500 million in the pipeline;
• the Commonwealth Blue Charter, which is an agreement by all 56 member countries to actively co-operate to address shared ocean challenges;  

• the Commonwealth Living Lands Charter: A Call to Action, which commits Commonwealth countries to safeguard global land resources while taking coordinated action on climate change, biodiversity loss and sustainable land management;  
• the Commonwealth Disaster Risk Finance Portal, which gives countries open, 24-hour hour access to key information on financing to better manage the impact of disasters; and 
• the Commonwealth Sustainable Energy Transition Agenda, which seeks to fast-track an inclusive, just, and equitable transition to low-carbon energy systems across the group. 

In light of 2023 being designated as the Commonwealth Year of Youth, the Commonwealth delegation will also host a series of events focused on promoting youth-led action on challenges posed by climate change. Please see the full schedule here.