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Civil Society Core Group concerns over SL anti-corruption progress

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By: Staff Writer

Colombo (LNW): The Civil Society Initiative on Anti-Corruption Reform for Economic Recovery (the CSI Core Group) expressed concerns over the lack of progress on anti-corruption efforts.

The CSI Core Group, which comprises Transparency International Sri Lanka (TISL), Verité Research, the Centre for Policy Alternatives (CPA), Sarvodaya, People’s Action for Free and Fair Elections (PAFFREL) and the National Peace Council (NPC) in a statement acknowledged that the International Monetary Fund’s Executive Board last week concluded the first review of the 48-month EFF-supported program for Sri Lanka, and confirmed that Sri Lanka will have access to SDR 254 million (about $ 330 million).

The CSI Core Group reiterates its view that governance and anti-corruption priorities that have been highlighted by CSOs in Sri Lanka as well as the IMF in their respective governance diagnostics, are a necessary foundation for economic recovery in Sri Lanka.

“Not giving adequate priority to these actions is likely to set Sri Lanka up for a second round of debt crisis in the next five years,” the Group said.

It said the CSOs welcome the IMF’s focus on promoting governance reforms within Sri Lanka’s program.

However, they note with concern that the Government has failed to implement basic commitments around transparency and anti-corruption that are mentioned in the current program.

For example, the program expected the Government to publish by the end of March 2023 on an online platform, relevant information on large-scale public procurement contracts and those receiving tax exemptions through various laws.

The Government has failed to do so to date. As noted in the IMF documents as well, the Government is still significantly slow and incomplete in operationalising and adequately structuring the expected anti-corruption initiatives including implementation of the new Anti-Corruption Act.

The IMF has now reclassified some of these actions as Structural Benchmarks. “By these failures, the Government has signalled that it will under-deliver or renege on anti-corruption commitments if there is space within the program to do so,” the Group said.

The IMF by classifying commitments as “Prior Actions” (PAs) or as “Structural Benchmarks” (SBs) can signal very serious concern. While several of the failed governance-related actions have been reclassified as SBs, the opportunity to signal urgency by classifying them as PAs has been missed, even when actions were overdue by over 6 months.

As the Government continues to make momentous decisions on behalf of the people of Sri Lanka, the CSI Core Group calls upon the Government to rethink its recalcitrant approach to the anti-corruption reform agenda.

World Bank unlocks additional US$ 250mn for SL economic reforms

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By: Staff Writer

Colombo (LNW): The World Bank has released the second tranche of the USD 500 million under the Sri Lanka Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation (DPO), considering the continued satisfactory progress made by the government with the reform program.

The $500 million RESET Development Policy Operation (DPO) for Sri Lanka supports foundational reforms needed to restore macroeconomic stability,mitigate the impact of current and future shocks on poor and vulnerable people, and support an inclusive and private sector-led recovery.

The RESET DPO, which provides budget support to the government, was approved on June 28, 2023. This is the first in a series that supports foundational reforms to restore macroeconomic stability, mitigate the impacts on the poor and vulnerable, and support an inclusive, private sector-led recovery.

The World Bank says this support is contingent on prior actions or milestones that need to be completed before the funding is released.

In a statement, the global financial institution said the second tranche is now being released after assessing that the government continues to make satisfactory progress in carrying out the broader reform program, the macroeconomic policy framework remains adequate, and the Banking (Special Provisions) Act – aimed at strengthening the deposit insurance and problem bank resolution framework – has been enacted.

“Continued momentum on economic and structural reforms is critical not only to stabilize the economy, but also to unleash its potential for private sector-led growth and transformation,” said Faris H. Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka.

“The RESET DPO supports the government with these foundational reforms to bring the economy to full recovery, boost Sri Lanka’s competitiveness and growth potential, and encourage private sector investment and participation for inclusive and resilient growth and job creation.

We have coordinated and sequenced all our support with the IMF, ADB, and other development partners,” Mr. Hadad-Zervos added.

The first tranche of the RESET DPO for USD 250 million was released in June 2023 upon the completion of seven reform prior actions across three pillars: economic governance; growth and competitiveness; and protecting the poor and vulnerable.

Colombo Dockyard successfully repairs bulk carrier MV. Caravos Liberty

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By: Staff Writer

Colombo (LNW): Colombo Dockyard PLC (CDPLC) has sucessfuly completed extensive repairs of bulk carrier MV. Caravos Liberty displaying its skills as offshore engineering facility company, officials of the company said.

MV. Caravos Liberty, a bulk carrier owned by Iason Hellenic Shipping Co. Ltd, had grounded in Indonesian waters and requested assistance from Colombo Dockyard PLC (CDPLC) for the repair of the bow damage.

Promptly responding to the owners, who have been repeat callers to CDPLC, shipyard’s marketing team discussed the confirmed line up of vessels to rearrange and create a special dry-dock slot for MV. Caravos Liberty.

This effort was successful, and a suitable dry-dock slot was offered to the Greek owners.

The shipbuilding and ship repair techniques were utilised to minimise the repair time in dry-dock, yard teams began fabricating the damaged bow area based on the provided drawings before the vessel’s arrival in the shipyard.

After the vessel was dry docked, the extent of the damage surpassed initial estimates. However, thanks to the proactive efforts of the production team, who had already commenced work before the vessel’s arrival, the grounding damage repair, involving over 160 tonnes of steel.

The shipyard team working round the clock managed to complete the repair within 22 days – a timeframe that exceeded the owner’s expectations.

The vessel’s tank internals were specially coated to meet the PSPC standards, while the vessel’s affected hull surface area coating was carried out during this emergency dry-docking call.

Colombo Dockyard’s dedication to meeting the owner’s urgent repair needs was further highlighted under the guidance from the senior management team Managing Director/CEO Thimira S. Godakumbura and SRB Consultant Benny Fernando, SRB General Manager S.G. Senadheera and SRP General Manager Waruna Kariyawasam.

The key members of the team, whose efforts contributed to the swift and successful completion of the repairs were Ship Manager P.H.S.R. Silva, Ship Repair Planning ABM V.A.M. Gunathilaka, Ship Repair AGM K.C. Wickrematunge, Hull Repair HOS K.G.D. Senadheera and Hull Design Manager H.G.P.K. Gamage and Design Asst. Engineer S.A.N.I Subasinghe.

The shipyard expressed gratitude for the unwavering support of its workforce, whose maximum efforts contributed to the swift and successful completion of the repairs.

The owner’s interests were looked after by Technical Manager Nikos Panagopoulos and Chief Operating Officer Sakis Vareltzis. The bow damage repairs were carried out meeting the classification society requirements of RINA.

SLT Board convenes to address internal concerns amidst ongoing union actions

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Colombo (LNW): The board of directors of Sri Lanka Telecom (SLT) is slated to convene today (21) to address internal concerns within the company.

Jagath Gurusinghe, the President of the All Telecom Employees Union (ATEU), has indicated that if satisfactory resolutions do not arise from the impending discussion, the scope of trade union actions will be expanded.

The ongoing strike action is a response to both the privatisation of Sri Lanka Telecom and perceived challenges under the current administration.

Protests, reflecting the issues faced by Sri Lanka Telecom, were staged in various locations on Wednesday (20).

Dollar rate at commercial banks today (Dec 21)

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Colombo (LNW): The Sri Lankan Rupee (LKR) remains steady against the US Dollar today (21) in comparison to yesterday as per leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 320.94 from Rs. 321.18, and the selling price to Rs. 332.12 from Rs. 332.38.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 319.50 from Rs. 320.62, and the selling price to Rs. 330.50 from Rs. 330.75.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 322 and Rs. 331, respectively.

Sri Lanka Original Narrative Summary: 21/12

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  1. State Minister of Finance Ranjith Siyambalapitiya confirms review of property tax collection system: IMF Senior Mission Chief Peter Breuer says “property tax” could significantly contribute to SL’s tax effort as “a progressive & equitable means of raising revenue from those with greater wealth”.
  2. SJB Economic Guru Dr Harsha de Silva (who has been a strong advocate of high Govt Revenue) confirms the approval of Parliamentary Committee on Public Finance for the VAT increase to 18% for several previously exempted key items including infant foods: meanwhile, hundreds of thousands of families struggle to provide well-balanced meals for their children, especially those under 5 years.
  3. SLPP General Secretary Sagara Kariyawasam says 4 persons have been proposed for the 2024 Presidential candidacy: confirms businessman Dhammika Perera is among them: asserts the SLPP is taking necessary steps to face any upcoming elections very strongly: laments the SLPP has to provide the “necessary strength” to the Govt in Parliament, although it is not in full agreement with all its policies.
  4. SLPP leader Mahinda Rajapaksa says President Ranil Wickremesinghe has successfully restored law & order, and hence, the duty of the SLPP is to ensure a stable government until the next elections: urges people to pay attention to the tax policy & past economic practices of the political party they vote for at upcoming elections: warns of attempts to hustle people blindly in various directions through ramped up propaganda & social media hysteria.
  5. Presidents Office says SL received USD 337mn as the 2nd IMF tranche, USD 200mn from ADB for various programs, & USD 250mn from the World Bank, in Dec’23: adds that these disbursements totalling USD 787mn have strengthened “budget support and enhanced the country’s external buffers”.
  6. Finance Ministry says the USD 780mn inflows of forex to the Govt in Dec’23 will enable the Gross Official Reserves to surpass USD 4bn by end-2023: analysts point out that, as of now, SL is in arrears of a massive sum of over USD 6bn to bilateral & private Creditors, and that re-structuring efforts have not led to any “hair-cut” being agreed to by any Creditor, other than the captive & helpless EPF.
  7. Aviation Minister Nimal Siripala de Silva says candidates seeking employment as Air Hostesses at SriLankan Airlines should have clear facial skin, an unblemished midriff, as well as proficiency in English: SriLankan Airlines has held interviews of nearly 6,000 applicants, of whom 196 air hostesses were selected.
  8. Social media goes viral with a story that a well known international fast-food chicken brand outlet had served “rancid chicken” and that Public Health Inspectors.are conducting investigations.
  9. Ministry of Public Security says 2,296 persons were arrested while 1.1 kgs of Heroin, 648g of ICE, 126,060 Cannabis plants & 19,507 pills were recovered during an islandwide special operation.
  10. Dr Palitha Bandara Subasinghe of Kandy National Hospital says a recent survey has revealed that 6,307 complaints of “rape of girls under 16 years of age” had been received by police stations all over the country from 2018 to 2021, and that 5,055 of them had been raped “with their consent”.

Cabinet approval for amendments to ICT Act

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Colombo (LNW): The Cabinet of Ministers has granted its approval this week for a resolution directing the Legal Draftsman to prepare a draft bill aimed at amending the Information and Communication Technology Act No. 27 of 2003.

The resolution was furnished by President Ranil Wickremesinghe in his capacity as the Minister of Technology.

The proposed amendments to the current act are designed to enhance the effectiveness of Sri Lanka’s digital development initiatives, according to the Government Information Department.

Additionally, these amendments seek to facilitate the establishment of a Digital Development Agency.

The envisaged Digital Development Agency will be tasked with crucial responsibilities, including providing strategic and policy leadership, overseeing the government’s digital development processes, offering guidance and supervision for investments, and establishing a national centre dedicated to artificial intelligence (AI).

High Court Lawyers Association responds to Minister, accuses him of compromising judiciary’s integrity

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Colombo (LNW): The Colombo High Court Lawyers Association (CHCLA) has vehemently criticised Public Security Minister Tiran Alles, alleging that his recent public statement undermines the pivotal role of defence lawyers and compromises the integrity of the judiciary.

The CHCLA asserted that safeguarding the rights of suspects, irrespective of the charges levied against them, is an intrinsic constitutional entitlement enshrined in Article 13, which guarantees due process.

The association contended that the Minister’s statement unfairly singles out defence lawyers, erroneously attributing their endeavours to protect clients to personal deficiencies rather than recognising their commitment to their professional obligations.

Furthermore, the CHCLA highlighted the Minister’s omission of addressing systemic issues within the Sri Lanka Police, including allegations of corruption, characterising such oversight as disingenuous and detrimental to the overall integrity of the legal system.

The statement from the CHCLA robustly upholds the independence and impartiality of judges, underscoring their unwavering commitment to upholding the law and dispensing justice in an unbiased manner.

The Colombo High Court Lawyers Association urged the Minister to refrain from making statements that impede the legal profession’s ability to discharge its duties as outlined in the Constitution.

Emphasising the significance of preserving justice, fairness, and the rule of law, the CHCLA warned that any impediment to the work of legal professionals has the potential to undermine the foundational principles of a democratic society.

Wijeweera-induced leftism failed to see SL’s strategic imperative in collaborating with India for sustainable growth

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The economic progress of a nation hinges on fostering relationships with external investments, rather than pursuing a path of increased isolation.

In the case of a relatively smaller nation like Sri Lanka, the cultivation of economic ties with a neighbouring economic powerhouse becomes paramount.

In this regard, India emerges as the immediate and geographically proximate candidate, boasting not only regional significance but also representing the world’s largest market.

The utilisation of Sri Lanka’s strategic assets, such as its ports and the Trincomalee oil tanks left by previous investors, for extensive industrialisation necessitates collaboration with neighboring India.

Given the impracticality of linking a remote island like Sri Lanka with the distant Western world, the intervention of a proximal economic giant like India becomes imperative.

Thus, the prudent approach for a diminutive nation like Sri Lanka is to seek investments exclusively from an economic powerhouse where its geographical location holds significance.

Situated in close proximity to India within the Asian continent, Sri Lanka historically served as an outpost for Western nations seeking access to the vast Indian subcontinent. This geopolitical positioning was driven by concerns that the island might pose a threat to established Indian rule if captured by a rival party.

It is crucial to note that Sri Lanka’s appeal did not stem from any inherent resources or intrinsic importance but rather its strategic location. Presently, global powers, including China, accord attention to Sri Lanka based solely on its impact on their regional rival, India.

Consequently, the strategic relevance of Sri Lanka lies in its geographical proximity to the Indian peninsula rather than any other inherent attributes. Therefore, Sri Lanka’s pursuit of economic viability should centre on its close association with India rather than distancing itself from the latter.

India, as the democratic market and industrial capital nearest to Sri Lanka, provides a unique opportunity. The imperative now is not to sever the diplomatic ties with India and succumb to tribal isolation but to engage in diplomatic collaboration with India to discover and enhance its own economic value.

*Adapted from original article “විජේවීර වාමවාදයේ විකාර සහගත ඉන්දියන් විරෝධය අදට වලංගුද?” by Priyashantha Rajapaksa published on 21.12.2023.

CEB delays probe into nationwide blackout amidst lightning strike suspicions

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Colombo (LNW): The Ceylon Electricity Board (CEB) has not yet launched an investigation into the island-wide blackout that occurred on December 9, attributed to a lightning strike on the transmission line from Kotmale to Biyagama, reports said.

Although the blackout was initially cited as the result of a lightning strike causing the transmission line to trip, the CEB has not undertaken a thorough inquiry to determine the precise cause.

The line, carrying about 500MW at the time, tripped, leading to a loss of one-third of the supply and triggering a severe under frequency, causing other generators to trip and resulting in a nationwide blackout.

Despite initial promises of a probe, the CEB has not taken action, raising questions about whether negligence played a role, critics pointed out.

A similar incident occurred in December 2020, and a committee was appointed to investigate, but it remains unclear why its recommendations were not implemented to prevent a recurrence.

The delay in investigating the recent blackout, which caused economic losses, has raised concerns. CEB spokesman Noel Priyantha mentioned that the committee’s appointment is pending, causing the delay.