Colombo (LNW): Former President Mahinda Rajapaksa said he does not accept the recent Supreme Court ruling on Sri Lanka’s economic crisis.
Speaking in Kandy on November 15, MP Rajapaksa stated that they will respond to the matter when granted an opportunity by the court.
The Supreme Court held former President Gotabaya Rajapaksa and other officials, including Mahinda Rajapaksa and Basil Rajapaksa responsible for mishandling the economic crisis in response to a petition filed by Transparency International Sri Lanka (TISL) and activists Chandra Jayaratne, Jehan Canagaretna, and Julian Bolling.
Colombo (LNW): The Sri Lanka Cricket (SLC) Administration denied any current connections with Chairman of the Committee on Public Enterprises (CoPE) Prof. Ranjith Bandara.
In a statement, the SLC acknowledged a past agreement with the Colombo School of Business and Management, led by Bandara during the tenure of the previous administration. The school provided consultancy services to the former SLC administration from 2017 to May 2018, receiving payment solely for these services, the statement admitted.
Opposition Leader MP Sajith Premadasa raised concerns in Parliament about a potential conflict of interest with Bandara leading the CoPE investigating SLC.
Public footage of the SLC hearing at the Committee sparked controversy due to what it appeared to be Bandara hand-signalling a SLC member, leading to a storm of speculation that the CoPE Chief had ‘silenced him’ not to speak.
Bandara dodged the question in Parliament asserting that he did not silence anyone but urged the attendees to speak ‘one at a time,’ and criticised the Opposition for ‘politicising’ the Committee.
The Opposition Leader questioned the involvement of Kanishka Bandara, Prof. Ranjith Bandara’s son, in a recent CoPE meeting with SLC, prompting Speaker Mahinda Yapa Abeywardena to announce a probe into the matter.
The Speaker acknowledged that external participation in CoPE meetings is not allowed and pledged to look into the circumstances surrounding Kanishka Bandara’s presence.
Colombo (LNW): Sri Lanka has ramped up their commitment to achieving the Nationally Determined Contributions (NDCs) and has outlined targets in an Implementation Plan till 2030.
It will be focusing on an integrated, holistic approach to enable transformative impact across sectors, the Ministry of Environment and UNDP said in a joint statement.
The NDC Implementation Plan sets out a blueprint for immediate climate action. With the first global stocktake of progress on the Paris Agreement scheduled for discussion at the 28th session of the Conference of Parties (COP28) in Dubai later this year.
It is an opportunity for all countries to course correct and accelerate action to tackle the climate crisis, the joint statement said.
Sri Lanka annually spends LKR 50 billion on climate-induced post-disaster contingent liabilities that arise through floods, droughts, landslides, and storms including relief assistance for damages incurred to housing, infrastructure, agricultural crops, and businesses.
Dr. Anil Jasinghe, Secretary, Ministry of Environment stated, “Sri Lanka accelerated its climate action through the launch of the Climate Prosperity Plan at COP27.
The revised National Policy on Climate Change (2023) and 2050 Carbon Net Zero Road Map and Strategy are expected to be launched at COP28 this year.
The NDCs act as the base for these strategic interventions and implementing the NDCs will lead to increasing Sri Lanka’s share of renewable energy, adopting adaptation interventions and increasing our coping capacity and resilience to climate disasters”.
Sharing progress on Sri Lanka’s NDCs, Dr. Jayathunga, Additional Secretary (Environment Development), Ministry of Environment highlighted,
“The NDCs are a nexus and linking point through which we can reinforce our national sustainable development targets including the targets laid out in our National Environment Action Plan and National Adaptation Plan”.
From record-breaking temperatures to increasing extreme weather events, in 2022 alone Asia recorded 81 weather, climate and water-related disasters which directly affected more than 50 million people, costing USD 36 billion in economic damages, according to the World Meteorological Organisation’s State of the Climate in Asia report.
The global landscape is changing dramatically with the climate crisis becoming the new normal. Sri Lanka too is reeling from multiple crises and with climate change impacts already being experienced, recovery comes at a high cost.
The Paris Agreement lays out a collective framework for all countries to address climate change. But reports come in that there is still limited progress in reducing the emissions gap by 2030, and there is a global call to scale up climate action to keep the 1.5°C objective within reach.
Colombo (LNW): The targets laid out in Sri Lanka’s budget for 2024 will be challenging to meet, even with the economic recovery that we expect to continue next year, says Fitch Ratings.
The fiscal deficit is set to be wider than our current forecast of 7.1% of GDP in 2024 in light of the new data, even after excluding bank recapitalisation costs, and the revenue/GDP ratio will be lower than we had assumed.
The government is targeting a budget deficit of 9.1% of GDP in 2024, wider than a revised estimate of 8.5% in 2023.
However, without bank recapitalisation costs, the deficit in 2024 would be a narrower 7.6% of GDP. Excluding recapitalisation costs, the budget targets a primary surplus of 0.8% of GDP in 2024, against a deficit of 0.7% in 2023.
Nevertheless, including recapitalisation costs pushes the 2024 primary deficit target to 0.6% of GDP.
The primary surplus goal for 2024, excluding bank recapitalisation, is broadly in line with the 0.8% of GDP projected by the IMF in March when it approved Sri Lanka’s USD3 billion Extended Fund Facility (EFF).
We also see the revenue target as relatively aligned. However, the government’s expenditure target for 2024, at 22.2% of GDP, is somewhat higher than the 19.7% the IMF had envisioned and well above the revised budget estimate of 18.7% for 2023, fitch ratings said.
The release of the next tranche of EFF financing, worth around USD330 million, will depend partly on the IMF’s assessment of Sri Lanka’s progress in securing financing assurances from official creditors.
Fitch believes there has been some progress since March, but the timeline for a restructuring deal with official creditors remains unclear.
Fitch expects there are significant risks to the government’s revenue goal for 2024. Sri Lanka has a record of fiscal slippage, and revenue collection fell 29% short of target over 9M23.
The authorities aim to raise revenue by almost 45% in 2024. This will be aided by a planned 3pp increase in the value-added tax to 18%, but the boost to revenue from inflation is set to weaken in 2024.
We project consumer prices will rise by 8.7% on average in 2024, compared with 22.1% in 2023. The lift from economic growth, which Fitch projects at 3.3% in 2024, will also be modest.
Downside risks to revenue could be offset by lower-than-budgeted spending. We think the presidential election in late 2024 will incentivise the government to keep to its spending plans, which include a 14% increase in spending on salaries and wages. Nevertheless, if revenue falls short, there may be some room to trim capital expenditure, which amounts to almost 20% of total planned spending and is budgeted to rise 55% in 2024, excluding bank recapitalisation.
Colombo (LNW): An inquiry has been initiated by the police into the tragic shooting incident that occurred last night in the Lunugamwehera forest reserve.
The victim, a 31-year-old resident of Tissamaharama, sustained serious gunshot injuries and succumbed to them after being admitted to Lunugamwehera hospital.
The incident unfolded as officials from the Kataragama, Karawila Wildlife Office were engaged in a raid within the protected area. The operation was intensified after nearby wildlife offices reported the escape of individuals from the reserved area.
Consequently, a search operation was launched to apprehend the fugitives in Zone No. 06, Left Bank Zone of Yala Park.
Preliminary police investigations indicate that the shooting occurred during the execution of the search operation.
A wildlife controller responsible for the shooting has been apprehended after voluntarily surrendering to the police along with his firearm.
Colombo (LNW): The Sri Lankan Rupee (LKR) indicates a slight depreciation against the US Dollar at leading commercial banks in the country today (16) in comparison to yesterday.
At Peoples Bank, the buying price of the US Dollar has increased to Rs. 322.90 from Rs. 322.17, and the selling price to Rs. 334.15 from Rs. Rs. 333.39
At Commercial Bank, the buying price of the US Dollar has increased to Rs. 321.98 from Rs. 321.75, and the selling price to Rs. 333 from Rs. 332.
At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 323 and Rs. 333, respectively.
Colombo (LNW): Sri Lanka’s Eastern Province is to connect with the United States through a new American Innovation Hub (iHub) which was inaugurated yesterday.
The U.S. Ambassador to Sri Lanka Julie Chung inaugurated the new American Innovation Hub and welcomed the Governor of the Eastern Province Senthil Thondaman to join as a special guest.
A joint initiative between the U.S. Embassy and Dream Space Academy, the iHub in Batticaloa aims to empower the youth of the Eastern Province, foster knowledge exchange, and promote people-to-people ties between the United States and Sri Lanka.
In addition to the American iHub in Batticaloa, the U.S. Embassy has interactive American Spaces in Colombo, Kandy, Jaffna, and Matara.
“The Batticaloa iHub, our fifth American Space in Sri Lanka, will be a key link to connect the Eastern Province with the United States, as well as to cultivate connections between young people across the entire island,” said U.S. Ambassador Julie Chung.
“As we celebrate 75 years of bilateral relations this year, this space holds great promise for the youth and academic institutions in the region, fostering innovation, leadership, education, and collaboration.
This will be a space where all people feel comfortable and inspired, underlining the enduring and robust partnership between the United States and Sri Lanka.”
The Batticaloa iHub is designed to be a hub of intellectual engagement, providing access to a wide range of free-of-charge resources, including books, digital materials, multimedia content, and online databases.
It serves as a space where students, researchers, and enthusiasts can gather to expand their horizons, engage in discussions, and collaborate on projects that contribute to educational and social development.
The iHub also hosts a variety of free programs, workshops, and events focused on areas such as English language learning, entrepreneurship, STEM (Science, Technology, Engineering, and Mathematics), and American literature and history.
These activities not only enhance participants’ skills but also foster a deeper appreciation for the diversity of thought and ideas.
Located at 7A Saravana Road, Kallady, Batticaloa, the Batticaloa iHub will be open to the public from Monday to Friday, 9:00 a.m. to 5:00 p.m. and Saturday, 9:00 a.m. to 12 noon.
All skills development programs and activities at the iHub will be conducted free of charge.
Colombo (LNW): The US has expressed its concern to Sri Lanka about a Chinese research ship likely to dock in the island country next month, a development India too finds concerning.
A special representative of Chinese President Xi Jinping Mrs. Shin Yi Chin is scheduled to visit the island on the 18th amidst reports of another research ship to reach Colombo port early next year.
The Chinese President’s special representative’s visit to the island nation is significant following the Chinese leader’s promise given to his Sri Lankan counterpart Ranil Wickreamsighe to provide assistance for Sri Lanka without any political motives, to buy more of the island’s exports and to increase investments.
President Xi also assured that China would provide friendly, practical and timely support for Sri Lanka’s debt optimization program.
The Chinese Ministry of Foreign Affairs announced that Mrs. Shin Yi Chin will stay in the country until the 21st.
During that time, Ms. Shin Yi Chin is scheduled to hold discussions with high-ranking representatives of Sri Lanka.
Meanwhile China has sought permission from Sri Lanka for another one of its state-of-the-art research vessels to engage in research and survey in the Exclusive Economic Zone of the Sea of Sri Lanka.
China is now requesting clearance for a vessel identified as Xiang Yang Hong 3.
Chinese officials have informed their Sri Lankan counterparts that the Xiang Yang Hong 3 is expected to engage in research within Sri Lanka’s Exclusive Economic Zone.
According to reports, the Xiang Yang Hong 3 is to engage in the research and survey from January 5th to February 20th, next year.
The Xiang Yang Hong 03 is owned by the Third Institute of Oceanology, of the Chinese Ministry of Natural Resources.
Xiang Yang Hong 03’s home port is listed as Xiamen, Fujian Province, is 99.6 metres in length, and falls under the General survey vessel.
At the same time, the Chinese geophysical scientific research vessel Shi Yan 6 which reached the Port of Colombo in October in the midst of strong concerns from India, has once again indicated that it will be heading to Colombo.
However, Sri Lanka’s Foreign Ministry said that it was not informed about the arrival of the Chinese geophysical scientific research vessel Shi Yan 6.The Shi Yan 6 continues to navigate in the Indian Ocean.
Over the years, over 17 state-of-the-art Chinese Research/Survey vessels reached the Sea of Sri Lanka since 2017.
The Xiang Yang Hong 3 had visited Sri Lanka for the first time on the 13th of December 2017, and remained in Colombo and Trincomalee for a period of 18 days.
The Xiang Yang Hong 3 returned to Sri Lanka on the 22nd of December 2019 and remained in Sri Lankan waters until the 5th of January 2020.
The Xiang Yang Hong 19 Scientific Research Vessel reached Sri Lankan waters on the 11th of February 2020 and was anchored for nine days.
Colombo (LNW): The Transparency International Sri Lanka (TISL) commended the Supreme Court verdict on November 14 that several top government officials led by former President Gotabaya Rajapaksa and former Prime Minister Mahinda Rajapaksa violated the public trust and breached Article 12 (1) of the Constitution of Sri Lanka, in their administration of the country’s economy, leading to the economic crisis.
In a statement, the TISL who was a petitioner to the aforementioned case noted that this would be a landmark judgement upholding the fundamental rights of the people of Sri Lanka.
Full Statement:
In a landmark judgment, the Supreme Court today (November 14) held that former President Gotabaya Rajapaksa, former Prime Minister Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa, former Governors of the Central Bank of Sri Lanka, Prof W.D Lakshman and Ajith Nivard Cabraal, former Secretary to the Treasury S.R. Attygala, former Monetary Board, and former Secretary to the President Dr. P.B. Jayasundera violated the public trust and breached Article 12 (1) of the Constitution, in their administration of the economy, leading to the economic crisis in the country.
The Court made some key observations in its judgment –
The conduct of Respondents directly contributed to the results that led to the crisis situation.
Respondents ought to have known and should have taken actions to resolve matters that negatively impacted the economy and not further aggravating the impact and are responsible to act in the best interest of the country.
Public officers have a responsibility to discharge their duties in the best interest of public.
Respondents are bestowed high power to uphold public trust and are duty-bound to discharge duties according to Directives of the Constitution.
Respondents cannot shirk responsibility by merely stating that the decisions they took were policy decisions.
It was within full power of Respondents to prevent such calamity as they had full knowledge.
It is clear that they did not act and take all measures to remedy the situation in the public interest.
Cumulative actions and inactions by Respondents led to the debacle.
The public trust reposed in Respondents was not a higher one and is bestowed on all officers, and therefore Respondents were obliged to act in a responsible manner.
Actions, omissions and conduct of Respondents contributed to the economic crisis.
Transparency International Sri Lanka (TISL), along with co-petitioners Chandra Jayaratne, Jehan CanagaRetna and Julian Bolling, filed this Fundamental Rights Petition (SC/FRA/212/2022) on June 17, 2022, calling for action against persons responsible for the economic crisis in Sri Lanka. It was filed in the public interest, considering the lack of accountability and transparency in high level decision-making that has brought Sri Lanka to its knees.
On the request of Respondents, the Court took up the petition along with another petition (SCFR 195/2022) which was similar in nature.
The case was heard before a five-judge bench comprised of Chief Justice Jayantha Jayasuriya, PC, B. P. Aluwihare, PC, Priyantha Jayawardena, PC, and Vijith K. Malalgoda, PC, and Murdu N. B. Fernando, PC. The decision was a 4-1 split, with Justice Priyantha Jayawardena, PC dissenting.
Given that Petitioners came to Court in the interest of public and did not seek compensation for themselves, the Court was not inclined to order compensation other than costs incurred by Petitioners.
The petition by TISL, Chandra Jayaratne, Jehan CanagaRetna and Julian Bolling claimed that the respondents named in the petition were directly responsible for the unsustainability of Sri Lanka’s foreign debt, its hard default on foreign loan repayments and the current state of the economy of Sri Lanka. The petitioners called for the respondents to be held accountable for their illegal, arbitrary and unreasonable acts or omissions which culminated in the unprecedented crisis.
The Petitioners argued that the fundamental rights of the citizens to equality, freedom of expression and the right to information guaranteed under the Constitution had been violated through the actions or inactions of the respondents, among other rights.
It added that the actions and inaction of the respondents led to the shortages of food, medicine, fuel and LP Gas in the country, victimising the entire population in an unprecedented manner.
The petition highlighted that the reduction in Government revenue caused by the tax breaks, failure to reverse the tax breaks, the decision to continue servicing sovereign debt without any restructuring, and the refusal to seek the assistance of the IMF were among the main factors that caused the economic crisis.
Chandaka Jayasundera, PC, appeared for the Petitioners along with S.A. Beling, Chinthaka Fernando, Sayuri Liyanasuriya and Manisha Dissanayake.
President Ranil Wickremesinghe says he has still not made a decision as to whether he would re-contest the Presidency: declines to confirm or deny his plans of a possible re-contest.
BOI Chairman Dinesh Weerakkoddy laments that over USD 4bn worth of BOI approved projects are on hold due to red tape: says many agreements were signed for investors to start new business ventures, but that he is ashamed, sad, & angry to admit that over 90% of new projects could not get off ground as they were unable to get the necessary approvals.
State Finance Minister Shehan Semasinghe defends the costly salary hike for state sector workers: says the Govt is pursuing the correct course of action & that decisions are made with foresight.
JJB MP Vijitha Herath says both State Ministers of Finance – Ranjith Siyambalapitiya & Shehan Semasinghe had been present at the finalisation of the budget proposals with President Ranil Wickremasinghe: insists that, as a result, SLPP can’t complain now about the Budget 2024.
SLPP General Secretary Sagara Kariyawasam says the President keeps appointing Committees, but such Committees don’t deliver any positive outcome to the people & economy: also says those appear to be aimed at deceiving the people.
Fitch Ratings Agency says there are significant risks to the Govt’s Revenue goal for 2024: also says Revenue collection fell by 29% of the target in the first 9 months of 2023: analysts note that the Budget Deficit targeted by the Govt for 2024 is a huge 9.1% of GDP, even after the massive increases in tax rates & utility prices.
SJB MP Champika Ranawaka says the Inland Revenue Dept has not collected nearly Rs.1 trillion in taxes: also says only 50% of the tax revenue has been collected.
Police say a 6-year old student has been killed when the wall of the Wellampitiya-Weragoda school had collapsed: five other students admitted to hospital: the Principal of the school who had been assaulted by the locals in the area, also hospitalised.
SL premier blue chip John Keells Holdings’ Deputy Chairman Gihan Cooray says the Company plans to pass on the cost of the upcoming tax changes to consumers: expect the new taxes on cell phones & sugar to have large cost of sale implications on certain companies within the group: also says the Group hopes to maintain margins as part of the pricing strategy of the Group.
Public Health Inspectors’ Union Executive Member Roshan Kumara says his Union has decided to stay away from dengue control activities to protest the failure of the authorities to respond to their grievances: also says one of their key concerns is the Govt’s failure to increase the mileage rent & transport allowance provided for field duties.
