Colombo (LNW): A token strike organised at the National Eye Hospital in Colombo set to commence this (14) morning has been called off, after a discussion with Secretary to the Ministry of Health, Dr. Palitha Mahipala.
The planned token strike was in response to the perceived lack of action from the Hospital Director and the Ministry of Health regarding the unprofessional conduct of the Administrative Officer at the National Eye Hospital.
Dr. Chamil Wijesinghe, spokesperson for the Government Medical Officers’ Association, announced that the trade union action has been temporarily halted.
This decision was made after the Health Secretary assured them that the matter would be addressed, and an investigation would be conducted into the issues raised.
Colombo (LNW): Now that the immediate economic crisis is over and Sri Lanka has secured the second tanche of US$337 million, the government has to seek more international funding which includes access to IDA and access to the IBRD (International Bank for Reconstruction and Development, a part of World Bank that lends to middle-income countries).
Extended Fund Facility from the IMF is quite essential in times like this, where the country has lost access to the market for finance.
In this context President Ranil Wickremesinghe yesterday told Parliament that Sri Lanka’s success in securing the necessary funds from international financial institutions in recent months would provide a significant boost to the country’s financial sector, ensuring its complete security.
With the International Monetary Fund approving the second tranche and the World Bank extending US $ 150 million for deposit insurance, Sri Lanka is poised to receive additional funding for the development process from the other key financial institutions such as the Asian Development Bank and JICA, at low-interest rates and favourable terms, he said.
World Bank lending has supported Sri Lanka’s development for several decades and its outstanding loan portfolio tops 2.4 billion dollars across 17 projects. However when Sri Lanka’s economic crisis hit the bank repurposed around 14% of its undisbursed loans to help pay for imports of LP gas and fertiliser.
“This approval reinstates the confidence of foreign investors, who can now invest in Sri Lanka without hesitation. Our international letters of credit are once again recognised, providing us with the opportunity to expand our market more easily and gain global recognition. It is imperative that we strive to maximise these opportunities for the benefit of our country,” he said.
Although the country has bagged some wins, President Wickremesinghe said it is crucial to acknowledge that achieving this victory does not signify perfection.
“According to President Wickremesinghe, as Sri Lanka progresses forward, it is imperative to advance steadfastly along the path while exercising caution to prevent the recurrence of past errors that led the nation towards financial insolvency.
“The commitment to these principles will unequivocally influence the security or jeopardy of our country’s future,” he said.
President Wickremesinghe pointed out that the journey towards revival and growth is marked by several paramount objectives—minimising the foreign exchange deficit, achieving trade balance, narrowing the income and expenditure gap, optimising the surplus in the primary budget account and upholding stringent financial discipline.
Colombo (LNW): The Sri Lankan Rupee (LKR) indicates a slight fluctuation against the US Dollar today (14) in comparison to yesterday, as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US Dollar has increased to Rs. 322.23 from Rs. 321.77, and the selling price has dropped to Rs. 331.47 from Rs. 331.61.
Colombo (LNW): Sri Lanka’s Trade Minister Nalin Fernando threatened egg producers to reduce the egg prices or face stiff competition in the market with imported eggs, as the government will be importing import 15 million eggs from India.
Sri Lanka imports 30 million eggs monthly after the prices hit 65-70 rupees per egg after the government slappped price controls on eggs, amid maize import controls, leading to culling of the layer chick population and parent birds in hatcheries.
Minister Fernando said the egg prices have come down to as low as 35 rupees in government-owned Sathosa super markets.
“We will be importing until December 31. If we haven’t imported eggs, they have estimated the price to hit 90-100 rupees,” Fernando said.
The Sri Lanka State Trading (General) Corporation said an order was placed for another 15 million eggs from India.
Its Chairman Asiri Walisundara noted that Sri Lanka is due to receive the eggs by Monday (18).
The quality inspection reports of another 10 million eggs that were imported are due from the Department of Animal Production and Health on Saturday (16).
The Sri Lanka State Trading (General) Corporation said the distribution of eggs has also increased, adding that 1 million eggs were released daily for Sathosa outlets.Its Chairman added that the number will be increased to 2 million.
Sri Lanka’s eggs were around 20 to 25 rupees before the rupee collapsed in April last year from 200 to 360 to the US dollar.
Sri Lanka’s chicken meat and egg prices are generally higher than the world due to import licensing on maize which has pushed up production costs.
Maize taxes are only cut to make triposha, a supplement for children facing malnutrition which was started during severe import controls and money printing by macro-economists running government and central bank policy in the 1970s.
In August 2023 Sri Lanka lowered the so-called maize mafia tax, which allows politically connected collectors and farmers to make large profits to 25 rupees from 75 rupees a kilogram.
The maize tax, among the worst regressive protectionist food taxes on the island that used to drive self-sufficiency (autarky) as well as the linked import licenses have been blamed for firing corruption and childhood malnutrition by some critics.
Sri Lanka’s daily egg output is estimated to have dropped to about 4 million a day from the normal 7 million after farmers killed layer chicken for meat in the wake of price controls imposed by the Consumer Affairs Authority last year.
Colombo (LNW): In an unprecedented move several US Senators have introduced a bicameral and bipartisan resolution calling for accountability in Sri Lanka.
These U.S. Senators Ben Cardin and Jim Risch, Chair and Ranking Member of the Senate Foreign Relations Committee, along with Representatives Raja Krishnamoorthi and Bill Johnson, have introduced this resolution recently.
The resolution urges the Government of Sri Lanka to listen to and respect the rights of the Sri Lankan people by addressing corruption, ensuring justice and accountability for human rights abuses, and holding free and fair local and provincial elections without further delay.
The resolution recognizes that the people of Sri Lanka have faced a political, economic, and humanitarian crisis which has had devastating human impact.
It also notes that this crisis is exacerbated by government corruption, financial mismanagement, failures in the rule of law, and predatory lending associated with the People’s Republic of China.
The Sri Lankan government is not doing enough to address endemic corruption and impunity, and has weakened Sri Lanka’s democracy by indefinitely postponing local elections.
Many of those responsible for this crisis are also implicated in human rights abuses against Sinhalese, Tamils, and Muslims across Sri Lanka dating back to the civil war.
“The people of Sri Lanka deserve peace, prosperity, and justice,” said Chair Cardin addding that “Sri Lanka’s ongoing economic, governance, and humanitarian crises – which have had crippling impacts on the Sri Lankan people.
These factors are exacerbated by the Sri Lankan government’s unwillingness to meaningfully address the devastating legacy and impacts of its civil war and provide justice to those who suffered serious human rights abuses.
He said “This resolution makes clear that the United States stands with the people of Sri Lanka in their effort to form a more inclusive, just, democratic, and economically sustainable future.”
“Strengthening Sri Lanka’s democracy supports a more secure and prosperous Indo-Pacific. This resolution urges the government of Sri Lanka to hold free and fair local elections as soon as possible and to strengthen good governance, rule of law, corruption, justice, accountability, and human rights measures,” said Ranking Member Risch.
“The United States will continue to support the people of Sri Lanka in their pursuit of peace, prosperity, and democracy.”
“The people of Sri Lanka have experienced decades of war, economic crisis, and political suppression that have led to this moment of inflection in the nation’s history.
As a result of our resolution, the U.S. House of Representatives will express its strong support for the Sri Lankan citizenry and their ongoing efforts to bring about a peaceful, democratic society that will ensure prosperity for the nation and accountability for the tragic actions of the past,” said Congressman Krishnamoorthi.
Colombo (LNW): The International Monetary Fund (IMF) said that Sri Lanka has reached important milestones in putting debt on the path towards sustainability.
Peter Breuer, IMF Senior Mission Chief for Sri Lanka told reporters that Sri Lanka’s agreements-in-principle with the Official Creditors Committee and the Export-Import Bank of China on debt treatments are consistent with the program targets.
“It is now important for the Sri Lankan authorities and the official creditors to sign the respective Memoranda of Understanding. Timely implementation of the agreements, together with reaching a resolution with external private creditors, should help restore Sri Lanka’s debt sustainability over the medium term,” he said.
Sri Lanka has also reached important milestones in putting debt on the path towards sustainability.
IMF staff will continue to assist the authorities with creditor coordination in line with the IMF’s policies.
Breuer said IMF staff will continue to assist the authorities with creditor coordination in line with the IMF’s policies.
The publication of a Governance Diagnostic Report, the first in Asia and a structural benchmark under the program, is another commendable step taken by the authorities.
“Continued commitment to improving governance and timely implementation of the report’s recommendations can deliver tangible economic gains to the citizens of Sri Lanka. We look forward to further engagement and collaboration with stakeholders and civil society organizations on this critical reform area,” Breuer said.
The IMF welcomed the authorities’ firm commitment to strengthen social safety nets, including through a minimum spending floor, the selection of beneficiaries through objective eligibility criteria, and well-targeted spending through the dynamic Social Registry.
“We emphasize the importance of continuing to support the poor and the vulnerable,” he said.
The Executive Board of the International Monetary Fund had earlier approved the disbursement of approximately US$ 337 million to Sri Lanka as part of a bailout package.
The IMF said the Executive Board completed the first review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with access to SDR 254 million (about US$337 million) to support its economic policies and reforms.
All but one performance criteria and all but one indicative targets were met at end-June. Most structural benchmarks due by end-October 2023 were either met or implemented with delay.
Colombo (LNW): The World Bank (WB) has extended a US $34 million loan to enhance the primary health care system through the Primary Health Care System Empowerment Project.
The World Bank’s decision to provide the loan was based on the verified results of the project, Dr. Jayasundara Bandara, the project director, revealed.
Since 2019, the World Bank has contributed nearly US $160 million to the Primary Health Care System Empowerment Project.
Dr. Bandara mentioned that an additional US $20 million in loan assistance is expected for the project.
Colombo (LNW): President Ranil Wickremesinghe has given approval to secure the essential provisions for the ‘Aswesuma’ beneficiary programme, announced Social Empowerment State Minister Anupa Pasqual.
The required provisions would be obtained from the Asian Development Bank (ADB) and the World Bank through the 2024 Budget, the Minister pointed out, adding that his Ministry has received 1.2 million Aswesuma beneficiaries to be empowered, with a target of empowering 300,000 individuals next year.
The beneficiaries will be provided with necessary facilities to engage in various jobs and will be empowered in 25 sectors, including agriculture and animal husbandry, Pasqual emphasised.
Colombo (LNW): A controversy has arisen regarding the appointments to the Sri Lanka Medical Council (SLMC) made by the former Minister of Health, suggesting a potential violation of the Medical Ordinance, a report by Daily Mirror disclosed.
The concern revolves around the alleged breach of Section 29(f) of the Medical Ordinance, which mandates that at least two council members nominated by the Minister should not be government employees or recipients of a government pension, according to report.
It has been revealed that the former minister, seemingly overlooking these regulations, appointed four members, thus violating the aforementioned section, the local news agency reported quoting medical practitioners.
Three of these appointees, namely Dr. Kapila Jayaratne, Dr. Anwar Hamdani, and Dr. Janaka Rajapaksha, are known to be employed by the Ministry of Health. This action appears to contravene Section 12(f) of the Medical Ordinance, allowing the Health Minister to appoint only two members who are government employees, they emphasised.
Additionally, the removal of the sole council member not receiving a salary or pension occurred without a valid reason, reportedly at the request of the President of SLMC. The ousted member had raised concerns about irregular activities within the council.
In light of these issues, specialists and medical practitioners are urging the new Health Minister to investigate the matter to ensure that council appointments strictly adhere to the provisions of the Medical Ordinance.
Budget 2024 passed in Parliament with a majority of 41 votes: 122 vote for, and 81 against: President Ranil Wickremesinghe says he will ensure 100% security in banking and finance by the infusion of USD150mn (Rs.50 bn) from World Bank for “Deposit insurance”: analysts say SL’s banking & finance sector now exceeds Rs.12,000 bn.
Secretary to the Buddha Sasana Ministry Somaratne Vidanapathirana says the Ministry has no connection with the parties who signed the joint “Himalaya Declaration”, namely, the Global Tamil Forum and certain high-profile Buddhist monks advocating a “pluralistic” country: also says the Ministry is yet to receive the detailed declaration and therefore no action can be taken regarding the implementation of the Declaration.
Opposition Leader Sajith Premadasa says his Party will re-open negotiations on the agreement with the IMF under a future SJB Govt, so that additional burdens are not imposed on the public: previously, SJB’s “Economic Guru” and MP Harsha Silva had been one of the strongest advocates for the IMF programme, Debt re-structuring, flexible currency, higher taxes, and “cost-reflective” prices for all public utilities.
President Ranil Wickremesinge warns that deviating from the current IMF path could lead to another economic collapse: urges caution against the allure of “political fairy tales”: highlights the success achieved through the IMF programme.
Fort Magistrate’s Court further remands Pastor Jerome Fernando till 27th Dec’23.
Acting IGP Deshabandu Tennakoon orders the Computer Crime Investigation Division to set up a specialised unit to receive and investigate complaints relating to religious offences committed through social media networks.
Lanka Private Bus Owners’ Association Chairman Gemunu Wijerathne says the 18% VAT will affect the private bus industry and will probably lead to a bus fare hike.
SL Under-19 Cricket team loses to Bangladesh by 6 wickets: exits the semi-finals in the Asia Cup Under-19 Cricket Tournament in Dubai.
Sports Minister Harin Fernando turns down request by Institute of Sports Medicine to send Asian Games Gold Medallist Tharushi Karunaratne to Ireland for medical treatment.
Sports Minister Harin Fernando informs Appeal Court that he has revoked the appointment of the SL Cricket Interim Committee & it is now dissolved: Appeal Court’s decision on whether or not to take up the SLC President’s petition will be announced on 15th December.
