The newly appointed members of the Audit Service Commission were sworn in on the 9 th of April before the Hon. Mahinda Yapa Abeywardana, Speaker of the Parliament.
The Auditor General is appointed as the ex-officio Chairman to the Commission and accordingly, Mr. W.P.C. Wickramaratne took oath in the said position. Furthermore, Retired Justice Nihal Sunil Rajapaksa, Mrs. Nandaseeli Godakanda, Mr Gnananantharajah Thevagnanan. A M Dharmajith Nayanakantha also took oath as members to the Commission.
The International Monetary Fund (IMF) has reaffirmed its commitment to supporting Sri Lanka amidst its ongoing economic crisis. The announcement was made by IMF Managing Director Kristalina Georgieva during a meeting with the Sri Lankan delegation, led by Finance State Minister Shehan Semasinghe, at the Spring Meetings of the IMF and World Bank Group in Washington DC.
Georgieva assured the delegation that the IMF is dedicated to helping Sri Lanka during this difficult time and emphasized the importance of collective effort to overcome the crisis. In response, Semasinghe expressed gratitude on behalf of the Sri Lankan government and its people for the leadership provided by the IMF in supporting the country’s efforts to recover from the economic downturn.
The Sri Lankan delegation also reiterated their commitment to completing the IMF program and implementing an “ambitious reform agenda” to achieve debt sustainability and restore economic stability.
In addition to the IMF, the World Bank has also pledged support for Sri Lanka’s efforts to stabilize its economy, step up social protection, and revive growth. During a meeting with the Sri Lankan delegation, Managing Director of Operations Anna Bjerde reaffirmed the World Bank’s commitment to supporting Sri Lanka’s economic recovery.
On the sidelines of the Spring Meetings, Semasinghe also met with other key figures in international finance, including the Executive Director of the IMF and the Executive Director of the World Bank, to discuss Sri Lanka’s reform agenda and its commitment to successfully completing the IMF program.
The Spring Meetings come just weeks after the IMF green-lighted a 48-month extended arrangement under the Extended Fund Facility (EFF) program of SDR 2.286 billion (approximately USD 3 billion) for Sri Lanka. This program will allow Sri Lanka to access financing of up to USD 7 billion from the IMF, international financial institutions, and multilateral organizations.
Overall, Semasinghe noted that the Spring Meetings were a great opportunity for Sri Lanka to enhance cooperation with its international partners in order to ensure debt sustainability and further progress towards economic recovery.
Colombo (AsiaNews) – The Sri Lankan people’s struggle to defend their rights in the country’s grave situation is a witness to the new life transmitted by the Risen One said the Archbishop of Colombo, Card. Malcom Ranjith, in his Easter Sunday homily delivered in the cathedral.
It was a message linked to the fact that in the very same hours Sri Lanka commemorated the first anniversary of the beginning of Aragalaya, the popular uprising that began on April 9, 2022 and would later lead to the resignation of then President Gotabhaya Rajapaksa in July.
Card. Ranjith noted that “Christianity is a faith of people who know how to smile even in the midst of problems. This is the resurrection. And that is what Jesus showed on the cross: he challenged the negative attitudes of life.”
“Some people,” he continued in his homily, “say not to try to change, but to let things go on by themselves. Instead, the young people who went to the square in front of Parliament wanted to be agents of change in this country. They showed courage. And resurrection means just that.”
“Instead, if we let ourselves be overcome by the force of habit, let things go, we no longer oppose evil. We are the ones who have to change. As Christians, we must commit ourselves: this is resurrection.”
The anniversary of the start of the protests was commemorated Sunday morning at the Galle Face Green with a windfall attended by religious leaders including Buddhist monks, a Methodist priest, a Catholic nun, Muslim representatives and several civil society activists. Relatives of people who died in Aragalaya were also present.
During the commemoration, organizers unveiled a memorial, lit lamps and performed religious rites in memory of the victims of the crackdown. One of the protest leaders, Ajantha Perera said that if progress has been made in the country since the year 2022, it is because of the people’s struggle.
“We see that the current government is also working to turn the people’s struggle into terrorism through various laws, but we say we are not afraid of them. Regardless of the threats and obstacles, we will continue to carry on this struggle to achieve the change we want in this country.”
The Federation of University Teachers’ Association (FUTA) has temporarily called off its strike action, which had been commenced in protest of the government’s tax policy. Accordingly, the university lecturers will rejoin academic activities from April 17.
The FUTA joined a countrywide one-day strike action led by the trade union collective of professionals on March 15 against the recent tax revision, electricity tariff hike, and several other unpopular decisions made by the incumbent government. Although services returned to normalcy after the token strike was called off the following day, the FUTA decided to continue its trade union action as satisfactory solutions were not provided for their demands.
As a result, the evaluation of 2022 G.C.E. Advanced Level examination papers was delayed by at least 50 days, with parents of the students expressing concerns about the future of their children. However, against this backdrop, FUTA convened a special meeting last night to decide on the A/L exam paper marking process.
The decision to temporarily call off the strike action comes after the FUTA held discussions with the government representatives and secured some of their demands. Therefore, the university lecturers have decided to suspend the strike action and resume academic activities from April 17.
Meanwhile, the Department of Examinations on Monday (10 April) announced that the 2022 GCE Ordinary Level examination, originally scheduled to commence on 15 May, has been postponed by two weeks, to 29 May. The reason behind the postponement is yet to be announced.
This decision by the FUTA has brought some relief to the students and their parents, who were worried about the delay in the evaluation process and the possible impact it could have on the academic progress of the students. The FUTA has assured that they will continue to fight for the rights of the university teachers and ensure that the government fulfills its promises.
President’s Chief of Staff Sagala Ratnayake says the Govt’s agreement with the IMF for the USD 2.9 bn 4-year IMF programme will be presented to Parliament on 25 April: emphasises importance of a structural reform programme for economic recovery and sustainable growth.
SLPP General Secretary MP Sagara Kariyawasam says its National Organiser Basil Rajapaksa may end up being its Presidential candidate in a future election: also says Party Leader Mahinda Rajapaksa still commands the loyalty of SLPP supporters.
Election Commission to postpone the Local Government Election once again: the election was scheduled to be held on April 25, after being postponed earlier as well.
Chairman of the National Delimitation Committee Mahindra Deshapriya says the total number of members of Local Government Authorities must be reduced to 4,714 as per the new Delimitation Report.
CB Governor Nandalal Weerasinghe says SL’s sovereign lenders have yet to inform the Govt how they will engage with the country to restructure its USD 7.1 bn of debt and whether they will form an official committee or engage in bi-lateral talks.
NielsenIQ’s Director Therica Miyanadeniya says expectations for the future have begun to pick up slowly: also says that according to LMD Magazine, 17% of the businesspeople interviewed in early March said they expect the economy to improve, compared to only 7% a month ago.
State Minister Ranjith Siyambalapitiya says the Finance Ministry will bring down the price of school bags and shoes immediately: points out that with the start of the “new” school term, parents are having a hard time buying shoes and bags for their children: parents point out that the school term commenced in January.
Special discussion headed by Minister of Agriculture Mahinda Amaraweera held to plan the despatch of 100,000 monkeys to Chinese Zoos: Ministry of Agriculture states there is a high demand for SL monkeys (Toque macaque) from China, which will help resolve the issue of exceeding monkey population in the country.
Cardinal Malcom Ranjith says the SL people’s struggle to defend their rights in the country’s grave situation is a witness to the new life transmitted by the “Risen One”.
Test Cricket skipper Dimuth Karunaratne says his team is not underestimating any team and wants to put up a good challenge against Ireland during the forthcoming 2 Test match series.
Showers or thundershowers may occur at a few places in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-eliya, Galle and Matara districts during the afternoon or night.
General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year. The nearest areas of Sri Lanka over which the sun is overhead today (12th) are Mankulam, Periyakulam, Kuratiyawa, Morawewa and Mahadiwlwewa at about 12:11 noon.
During a discussion with Ambassadors and High Commissioners of Foreign Missions on 10th April, Mr. Sagala Ratnayake, Chief of Staff to the President and Senior Adviser on National Security, announced that the President has presented the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) program to Parliament and it will be discussed from April 25, while political parties will have to decide whether they will support their country or not.
Mr. Ratnayake emphasized the importance of a structural reform program for economic recovery and sustainable growth, which includes not only financial and economic reforms but also the reconciliation process, crucial for Sri Lanka’s progress.
Mr. Ratnayake further said,
“We started this tedious and ambitious program of structural reform for economic recovery and sustainable growth. We were left with very little option to do that and it was a very committed effort that we started on. This program is not limited purely to the fiscal and economic reforms; the fiscal reform in particular, also encompasses matters like the reconciliation process, which is key to a recovery for Sri Lankans and sustainable growth.
I won’t go into great detail on the IMF- EFF because it’s a public document, and I’m sure all of you have been through it. I just touched on the key areas. It’s based on advancing revenue-based fiscal consolidation, which includes tax policy measures. Many of them have already been implemented, but there are others, such as the removal of para-tariffs, which I will touch on again later, that will be based on a structured process. There are others that we will have to review in September when we review the IMF program.
If I may present an example, Excise taxes were raised by 20% in January. Furthermore, the anticipated revenue collection did not take place when the excise taxes were raised by 20% in January, leading to a reduction in legal purchases and an increase in illicit measures. At the review, certain measures will have to be reviewed, re-examined, and thought out.
We also discussed the target tax-to-GDP ratio of 14% by 2025, which is an ambitious target, but achievable.
Now, we actually did anticipate this would happen, but when you go through the stimulation with IMF and you have to make certain revenue targets, you work on figures, you forecast these figures, and you try to get it as right as possible. But what happened when we increased the Excise sharply was that the illicit measures set in and the legal purchases reduced as a result, so the anticipated or expected revenue collection didn’t take place. In fact, it went down as a percentage.
The revenue administration reforms and expenditure rationalization measures are underway. Additionally, the core public financial management function is being strengthened under the IMF program, which includes enacting a new Public Finance Management (PFM) law, restoring public debt sustainability, and rebuilding external buffers to ensure financial stability while reducing corruption vulnerabilities.
Regarding the World Bank and ADB programs, they are part of the structural reform program and compensate for the strength of some measures in the IMF program. Under the World Bank program, there is an improvement in fiscal oversight and debt management, which involves two measures being brought in. One is the establishment of a Parliamentary Budget Office through a Parliamentary Budget Office Act.
The Budget Office is expected to be up and running by May 2023. There is a mandatory time period that allows for public consumption, after which it will be presented to Parliament and then referred to the Public Finance Committee, which in turn has to come back to Parliament. This is a process they have to follow, and they hope to finish it by the first Parliamentary week of April.
It’s a very tight target. Once Parliament ratifies the decision of the Public Finance Committee, we hope to finish by the first Parliamentary week of this month, which starts on April 25th.
In the third quarter of 2024, a new public debt management law will be introduced, covering various areas, including ones that are currently not covered by law. This includes processes such as providing Sovereign guarantees and on lending operations to SOEs, which will be restructured and commercialized. The law will also aim to improve tax administration, with a mandatory Income Tax Act already approved by parliament, and an emphasis on enhancing tax audits and compliance in the first quarter of 2024.
Efforts are being made to safeguard the financial sector’s stability and restore the flow of credit to the private sector. Emergency liquidity assistance has already been provided, and a financial sector crisis management committee has been established. The Banking Special Provision Act is being worked on urgently and should be approved by parliament by the end of April to avoid any delays in the World Bank program.
To improve commercial performance, financial transparency, and private sector participation in State Owned Enterprises (SOE), the Public Private Partnership (PPP) program will be implemented, and SOEs will be restructured and divested. This process will begin with the incorporation of an SOE holding company, with technical assistance, and the new SOE Reform Act will be introduced in 2024.
To reduce trade and investment policy uncertainty and increase competitiveness, para-tariffs will be phased out over three to five years. Compensating adjustments will be made to ensure revenue neutrality, and the revenue gained from these adjustments will be monitored to offset the losses from para-tariffs.
In the fourth quarter of this year, the Unified Investment Law will be released, and protecting the poor and vulnerable is also a key area of focus. This will involve strengthening social protection institutions, improving delivery systems, and ensuring correct targeting. To achieve this, the first step is updating the registry, which has been challenging due to resistance from officers.
Details and pictures of potential beneficiaries will be collected and presented to a committee for selection based on specific criteria. Regulations for a new welfare benefit payment scheme will be adopted by the cabinet, and payments to beneficiaries are scheduled to start by June 1st. The World Bank program is primarily focused on economic stabilization, while the Asian Development Bank program supports the electricity and water sector reform programs, as well as sustainable tourism and urban development.
The reconciliation program is critical for sustainable development in Sri Lanka, and an anti-terrorism law will also be introduced. Constructive advice from the public is appreciated, and the National Planning Department will lead a government-driven policy mechanism for future projects, in line with debt sustainability and without additional IMF programs. Law and order will be strengthened, and we will have very little tolerance on unreasonable and disruptive trade union action. The restructuring of state-owned enterprises will involve going through the state for the restructuring of the prices of state-owned enterprises, and it’s supported by the people because they are tired of having to pay for corruption and pay for mismanagement.
The President has presented the IMF/EFF program to Parliament, and it will be debated during the week from the 25th April, where all political parties will need to decide whether they support their country or not.
Foreign Minister Ali Sabry
On behalf of the National Security Advisor and his staff, thank you very much again, ladies and gentlemen, for attending this briefing and your continuous support in staying informed about Sri Lanka’s progress and developments.
I also make use of this opportunity to thank all Sri Lankan creditors and especially the international community represented by your beautiful countries, for supporting Sri Lanka during this very difficult period.
President Wickremesinghe’s vision is to achieve stability and economic reforms to prioritize the ethnic reconciliation process and provide a long-lasting solution to problems. The government established a cabinet sub-committee on national reconciliation to consolidate three areas for the final push towards reconciliation.
The first area is to implement the 13th Amendment to obtain support from other parties in parliament and reach a broad consensus to give all Sri Lankans the dignity and respect they deserve. The second area involves some executive actions, including speaking to all parties before amending the Prevention of Terrorism Act (PTA) to meet international standards.
The third area involves establishing a domestic truth-seeking mechanism as an accountability process. The Cabinet has approved the draft of the TRC Law, and they are looking forward to learning from South Africa’s experience and finding technical support.
Secretary to the Ministry of Foreign Affairs Ms Aruni
The Government has been engaged in the Universal Periodic Review (UPR) process and have been in contact with around 25 to 30 government agencies for a long period of time. We have drawn information from them and have received about 294 recommendations as a result of that interaction. We appreciate the engagement and plan to see which recommendations can be implemented and where progress can be made. We have already shared these recommendations with the relevant ministries and government agencies.
Sri Lanka has participated in other processes such as the 52nd session of the Human Rights Council and the 6th periodic review under the International Covenant on Civil and Political Rights. The country has also faced challenges in getting government agencies together, but has managed to engage in a spirit of openness and constructive engagement.
We will also be facing the 9th Periodic Review under the Committee on the Elimination of Discrimination Against Women (CEDAW Committee) this year. We are keen to reach out to overseas Sri Lankans and build confidence with this important community. We have had an initiative with the Commonwealth Secretariat to create a forum for Sri Lanka’s interaction with overseas Sri Lankans in the Commonwealth context.
Sri Lanka is committed to making progress on the recommendations and engaging in constructive interaction to move forward with economic recovery and reconciliation in Sri Lanka.
Minister of State for Foreign Affairs Hon. Tharaka Balasuriya was also present at this discussion.
PAMUNUWA, April 11 (Reuters) – Fortune teller Andara Maanage Chandani, who runs a small shrine at her home near Colombo, says she used to make enough money to buy clothes for all eight members of her family every Sri Lankan New Year, which falls this week.
This time, Chandani says she has managed to buy bottoms for only three of her five children and nothing for herself, her husband who helps out with her work, and her dependent father.
Her income has halved but expenses doubled, as the island struggles with its worst economic crisis in more than seven decades, though the International Monetary Fund’s recent commitment to give the country about $3 billion over four years could start easing the pain.
“I’ve bought clothes to cover the bottom half for three. I’m thinking how to get the rest,” said Chandani, 49, sipping a citrus drink by the bustling street of Pamunuwa neighbourhood clogged with shoppers seeking bargains.
“Everything is costlier. Food, clothes, electricity and water bills, but incomes are lower. Everyone is struggling.”
About 85% of Sri Lanka’s 22 million population celebrate the New Year on April 14, observing auspicious times and visiting family. Gifting new clothes and sweetmeats is a key part of the celebrations.
But since the start of the economic crisis from March last year, Chandani says her income has fallen to about 50,000 rupees ($160) a month. Her eldest son is a part-time bouncer at a club and the only other earner in the family.
“I’m only focused on buying essentials now,” she said. “Once or twice a week I’ll buy fish and a bit of chicken for the kids.”
Sri Lanka’s economic meltdown, triggered by a severe foreign exchange shortage, low tax revenues and high debt, has seen the cost of living soar.
Inflation climbed to 50.3% in March, while food inflation hit 47.6% and clothing and footwear 73.7%.
Sri Lanka secured an IMF bailout last month but is still ironing out how to restructure debt owed to bilateral creditors and bondholders.
The country’s economy shrank 7.8% in 2022 and the World Bank forecasts another 4.3% contraction this year.
Hinduma Vithanage, owner of clothing wholesaler Abee Tex, said his sales were the worst in his nearly 25 years in the business. He employs 13 people and is struggling to stay afloat.
“This time we’ve only done half our usual sales,” he said. “People simply cannot afford to buy new things even for the season.”
A dress that sold for about 900 rupees last year now costs 2,000, he said. His power bill has jumped 29,000 rupees per month to 105,578 now after big increases in tariffs. Rent is up 70%.
Fortune teller Chandani hopes things will improve in the new year. “But I don’t think they will,” she said.
Colombo (LNW): Senerath Devendra, a senior professional in the financial and corporate sector in Sri Lanka, has joined Sri Lanka Export Credit & Insurance Corporation as its Chairman / Managing Director.
Devendra is a Fellow member of the Institute of Chartered Accountants of Sri Lanka, Fellow of the Institute of Certified Management Accountants and a Fellow member of the Commonwealth Association of Accountants.
Before taking up this position,he held the post of Chief Executive Officer/Director of a listed plantation company, a leisure sector company and was on the Boards of a few other companies of the Mackwoods group.
Devendra was also a member of the Institute of Directors of Sri Lanka.
Being a multidiscipline professional, he possess Board level experience in the private sector for more than 35 years in multinational and bluechip companies, handled acquisitions, restructuring and turned-around loss making entities.
Some of his previous employers are Unilever, John Keells Holdings and A. Baur & Co Ltd.
He carries a wealth of experience in international trading, involved in corporate investment decisions. For the last 20 years, he worked as a Board Director and a Chief Executive Officer of a public listed company managing over 10,000 employees. He pioneered Exporting Tea & Rubber direct from Plantations which was a ground breaking approach at the time.
He possess more than 35 years of experience in various business sectors in the field of accounting and finance, strategic planning, financial planning and control, treasury management, credit risk management and international marketing, company secretarial work, insurances, taxation and project management and general management, etc.
He further stated that serving the public sector is a highly fulfilling experience for him and is willing to share his private sector experience & culture to contribute to our economy at this crucial time. He is looking forward to taking up this challenge.
Colombo (LNW): The Transparency International Sri Lanka (TISL) said it welcomes the government’s proposed “Anti-Corruption Bill,” however with two major concerns pertaining to its contents.
Issuing a statement, the TISL emphasised that the Bill ontains several laudable provisions that seek to improve upon the existing anti-corruption legal framework in Sri Lanka, adding that however, two provisions in the Bill seek to override all other written laws, which include the Right to Information Act (RTI).
Full statement:
The proposed Anti-Corruption Bill, which seeks to replace the Bribery Act (Chapter 26), the Commission to Investigate Allegations of Bribery or Corruption Act No. 19 of 1994, and the Declaration of Assets and Liabilities law No. 1 of 1975, has been gazetted and is expected to be tabled in the Parliament soon.
This Bill was open for observations from different stakeholders including TISL and other civil society organizations, activists, and the public, and it now contains several laudable provisions that seek to improve upon the existing anti-corruption legal framework in Sri Lanka.
Specifically recognizing sexual favors as a form of gratification, including private sector corruption, and corruption offences related to sporting events within its ambit, are important changes introduced in this Bill. The Bill also significantly increases fines that can be imposed for offences.
Notably, some of the changes to the Declaration of Assets and Liabilities Law that anti-corruption activists including TISL have been advocating for a few years, have now been incorporated into this Bill. In the proposed asset declaration system, there will be a central authority (CIABOC – the Commission to Investigate Allegations of Bribery or Corruption) with which all the declarations of assets and liabilities will be filed.
The asset declarations will be made publicly available through an electronic system, subject to the redaction of certain sensitive information. This electronic system will identify red flags regarding the illicit enrichment of the individuals to whom this law applies. The proposed law also requires the President to file their declaration of assets and liabilities, unlike the current law.
However, TISL notes two serious concerns in the proposed law. It seeks to override all other written law, which includes the Right to Information Act. The proposed law contains sections that require officials of the CIABOC to sign oaths of secrecy and therefore, the disclosure of information by CIABOC under the new law will only be possible with special permission from the Commission. As such, the proposed law promotes a culture of secrecy by making access to information from the CIABOC more difficult and thereby negates the objective to “enhance transparency in governance,” as stated in the Bill.
TISL also notes that Section 119 of the Bill, which refers to false allegations, appears to send a negative signal to citizens willing to come forward as informants and whistleblowers to report corruption. While the similar provision in the current law has not been misused targeting corruption fighters, this particular provision could become seriously counterproductive and dangerous in a context of a politically influenced public service, or in an adverse environment of stifled civic space, democratic deficits, weak governance or kleptocracy. As an organization that advocates for citizens’ freedom of expression, TISL believes that the proposed Bill should be more robust and progressive enough to encourage whistleblowers and citizens to come forward and report corruption without fear of repercussions, while discouraging the corrupt.
TISL further emphatically highlights that the law itself, on paper, cannot create solve the plague of systemic corruption in Sri Lanka since the effectiveness of the law will entirely depend on its enforcement. For instance, the Bill provides for joint investigations and international co-operation, which will have no impact unless this is practically implemented. Under this Bill, the CIABOC is granted immense police powers, which provides adequate space for CIABOC to carry out its functions.
TISL reiterates that the successful implementation of those functions depends on the level of independence the Commission is given, starting with the appointment of the Commission and the Director-General, the creation of an enabling environment where the commission and law enforcement officials are able to act without undue influence and intimidation, availability of resources including human resources, financial independence, and knowledge capacity. The mere passage of this Bill, despite its progressive portions, will not be able to address the issue of corruption in Sri Lanka until there is the political will to lead the country by example, a system change that includes a cultural shift where the people resist corruption even at the petty level, and a context that is conducive to the whistleblowers.
Therefore, TISL calls upon the government, with the technical assistance of the International Monetary Fund (IMF) to rectify these concerns in the law forthwith, and further, to continue to engage with citizens, experts, and civil society, in order to adopt a holistic approach to achieve the envisaged goal of eradicating corruption in Sri Lanka.
