President Ranil Wickremesinghe issued a gazette notification,Nov- (02) appointing a 10-member commission of inquiry headed by retired CJ Priyasath Dep PC to obtain and submit information, investigate, inquire into and examine all existing election laws and regulations and make necessary recommendations for the amendment of election laws.
President Ranil Wickremesinghe issued the Gazette notification to establish a commission with the mandate to propose revisions to electoral laws that align with contemporary requirements and uphold the integrity of political parties. This commission operates in accordance with the stipulations outlined in Sections 2 and 3 of the Commission of Inquiry Act No. 17 of 1948 and is chaired by the retired Chief Justice, President’s Advocate Vevage Priyasath Gerard Depp. The other commissioners serving on this commission include Sundaram Arumanayagam Senanayakesa Alindralage, President’s Advocate Nalin Jayantha Abeysekera, Rajitha Naveen Christopher Senaratne, Ahmed Lebbe Mohammed Salim, Sagarika Delgoda, Esther Sriani Nimalka Fernando, and Vitarana’s Deepani Samantha Rodrigo.
The primary tasks of this commission encompass a thorough examination of existing election laws and the formulation of recommendations for their improvement. These recommendations extend to guidelines on the responsible utilization of media by political parties and independent groups. Furthermore, the commission is entrusted with gathering information, conducting investigations and delivering recommendations regarding the implementation of a code of conduct that governs the conduct of political parties, enhancing the regulations concerning party registration and ensuring their actions are transparent and accountable to the public.
In addition to these responsibilities, the commission is also tasked with addressing several critical issues. These include augmenting the representation of women and youth in political processes, reducing the time between the announcement of an election and the release of results and exploring the possibility of electronic voting using modern technology as an alternative to traditional paper ballots. Finally, the commission is called upon to provide recommendations related to the proposed constitution.
Furthermore, in recognition of the imperative to establish and uphold mutual trust between Sri Lankan voters and political parties, various globally renowned organizations, including the Inter-Parliamentary Union, have diligently focused on delineating criteria for enhancing the transparency and accountability of political parties.
This heightened scrutiny stems from the notable escalation in the financial expenses associated with election campaigns, encompassing elections. The role of financial resources in shaping political landscapes and the potential for undue influence on policy decisions have garnered considerable concern. Additionally, there has been a growing awareness of individuals with criminal backgrounds infiltrating political parties, supplanting stable political organizations with short-term political entities, consequently contributing to political instability. These issues have been of particular concern.
Further, the commission is expected to produce its report within a timeframe of six months.
In a significant event held in Colombo, the exchange of bilateral documents took centre stage, marking the initiation of projects supported by a generous USD 15 million grant from the Government of India.
This grant is specifically allocated to bolster the longstanding Buddhist connections between India and Sri Lanka, underscoring the deep historical and cultural ties that bind these two nations together.
The signing of the bilateral agreements took place at the President’s House in Colombo, Nov- (02). President Wickremesinghe and Hon Finance Minister of India Ms Nirmala Sitaraman engaged in lengthy bilateral discussions during this event.
Indian Prime Minister Narendra Modi’s announcement of this substantial grant underscores the significance of strengthening Buddhist linkages between the two countries. The grant could be allocated towards various initiatives, including the construction and renovation of Buddhist monasteries, capacity development, cultural exchange, archaeological cooperation, reciprocal exhibition of relics and other areas of mutual interest.
In recognition of the evolving economic landscape in Sri Lanka, both countries have agreed to recalibrate the grant amount from Sri Lankan Rupees to Indian Rupees, aligning it with the prevailing market conditions. This adjustment is being formalized through diplomatic Letters of Exchange and Acceptance, signifying a shared commitment to further enhancing these ties.
High Commissioner of India, Gopal Baglay and Secretary of the Ministry of Buddhasasana, Religious and Cultural Affairs, Somaratne Vidanapathirana, played pivotal roles in exchanging these documents, and this momentous occasion was witnessed by President Ranil Wickremesinghe and the Hon Finance Minister of India Ms Nirmala Sitaraman. The first project to be initiated under the USD 15 million grant is the solar electrification of religious sites across Sri Lanka, with an allocation of USD 10 million. The Memorandum of Understanding (MOU) for this significant project was jointly finalized by the governments of India and Sri Lanka.
This historic moment was captured with a photograph featuring all distinguished participants, celebrating a significant milestone in the bilateral relations of India and Sri Lanka.
This event was graced by the presence of Minister of Foreign Affairs Ali Sabry, Minister of Buddhasasana, Religious and Cultural Affairs Vidura Wickramanayaka, Minister of Water Supply and Estate Infrastructure development Jeewan Thondaman, Indian High Commissioner to Sri Lanka HE Gopal Bhaglay, Senior Advisor to the President on National Security and Chief of Staff to the President Mr. Sagala Ratnayaka, Secretary to the President Mr Saman Ekanayake, Governor of the Central Bank Dr. Nandalal Weerasinghe, Dr. R.H.S. Samaratunga, Senior Economic Advisor to the President, Secretary to the Treasury and the Ministry of Finance Mr. K. M. Mahinda Siriwardana, Secretary to the Ministry of Buddhasasana, Religious and Cultural Affairs Mr. Somaratne Vidanapathirana, Members of the Indian High Commission, members of the visiting Indian delegation, Foreign Ministry officials and High level Government officials.
Following the national cricket team’s significant defeat against India in ODI 33 of the ICC Men’s Cricket World Cup, the Secretary of Sri Lanka Cricket (SLC), Mohan de Silva, has tendered his resignation. This decision came in the wake of mounting criticism surrounding the team’s performance.
On November 3rd, Sports Minister Roshan Ranasinghe called upon the Executive Committee (ExCo) of the cricket governing body and the Selection Committee to step down from their positions or face severe consequences in light of the team’s consecutive losses.
In a press release, the lawmaker emphasized that both the cricket board’s ExCo and the Selection Committee should take responsibility for the recent defeats suffered by the national team.
Meanwhile, SLC has demanded an immediate and thorough explanation from the entire coaching staff and selectors after India’s resounding 302-run victory over Sri Lanka in Mumbai on November 2nd. The Sri Lankan team was dismissed for a mere 55 runs, marking the second successive lowest score against India, following a previous 50 all-out in the Asia Cup final leading up to the World Cup.
While acknowledging that losses are part of the sporting journey, SLC expressed deep disappointment with the recent defeats. The organization aims to initiate a constructive dialogue to identify areas for improvement and enhance competitiveness in future matches.
SLC further emphasized its expectation of a swift and comprehensive response from the coaching staff, demonstrating a strong commitment to improving the team’s performance in the remaining matches of the 2023 World Cup and in future competitions.
In the rich tapestry of life, there are those who shine with compassion and resilience, leaving an everlasting imprint on our hearts. Matthew Perry was one of these exceptional souls, whose impact reached well beyond the movie screens. His life was a moving story of how one person can touch many lives, providing comfort, hope, and a helping hand to those in times of trouble. In the quieter moments of his life, away from the spotlight, Matthew Perry’s legacy was a testament to boundless kindness and the art of giving back.
(She’s talking about Matthew Perry but she doesn’t talk about Friends??? Did she really know who Matthew Perry is? – Well, Reader, keep reading, you’ll find out soon!)
Matthew Perry’s journey through life began in a quaint town in Massachusetts on August 19, 1969. From a young age, it was evident that he possessed a natural flair for humor and an innate ability to make people laugh. However, his childhood was not without its challenges, which ultimately contributed to shaping the remarkable individual he would become.
At the heart of Matthew Perry’s early years was a family marked by both creativity and adversity.
His father, John Bennett Perry, was an actor, and his mother, Suzanne Morrison, was a Canadian journalist and press secretary to the former Prime Minister of Canada, Pierre Trudeau.
“My mom’s job therefore meant that she was away at work a lot — and I was left to compete with the ongoing concerns of a major Western democracy and its charismatic swordsman leader if I wanted a little attention,” .
Matthew wrote in his memoir
During that time, Matthew elaborated, he felt like a “latchkey kid” and started having “bad behavior.” “I got s—– grades, I started smoking, I beat up Pierre’s son,” he wrote, referring to current Canadian Prime Minister Justin Trudeau.
Yet, his childhood was also marked by the turmoil of his parents’ divorce when he was just a child. The separation brought with it a degree of instability and upheaval, which undoubtedly left a profound impact on the young Matthew.
In 1981, when Matthew was 12, Suzanne Morrison and Keith Morrison became husband and wife, and later they had 4 kids – Caitlin, Emily, Will and Madeline. “I think it’s because I was 10 years old when my sister Caitlin was born,” he wrote in his memoir. “Then came Emily, then Will, and then finally Madeline. I loved playing with them all, babysitting them, playing dumb games with them. There is no greater sound on the face of the planet than a child’s laughter.”
In 1997, Matthew developed a dependency on Vicodin after he was prescribed the pain medication following a jet ski accident. Four years later, during a low point in his decades-long struggle with addiction, Matthew called his parents from a Dallas hotel room, asking for their help to get him sober.
“I was in fear of losing my life,” he told PEOPLE in 2002. “There’s a moment of clarity where you have to prioritize your life. I listened to it.”
Keith and Suzanne were by his side and got him into a rehabilitation facility following the call.
“It was scary. I didn’t want to die,” he said. “But I’m grateful for how bad it got. It only made me more adamant about trying to get better.”
Matthew Perry’s journey through addiction was marked by periods of relapse and recovery. Despite the immense challenges, he never lost sight of his desire to overcome his demons. His determination to seek treatment and face his addiction head-on illustrated his unwavering commitment to recovery.
Matthew Perry’s memoir, “Friends, Lovers, and the Terrible Big Thing,” which he dedicates to ‘For all the sufferers out there. You know who you are’, served as a lifeline and a source of inspiration for countless individuals battling addiction. Its impact was profound, offering a unique window into the struggles, resilience, and redemption of a well-known figure who had faced his own demons.
For those grappling with addiction, reading Matthew Perry’s candid account of his personal journey was like a beacon of hope. The memoir provided a sense of camaraderie and understanding, reassuring them that they were not alone in their struggles. It was a reminder that even someone in the spotlight, like Matthew Perry, could face and conquer the same challenges they were experiencing.
The thing that I’m most proud of in my life is that if a stranger came up to me and said, ‘I can’t stop drinking. I can’t stop drinking. Can you help me?’ I can say, ‘Yes, I can help you.’
Matty writes in his memoir
The memoir doesn’t just focus on the darkness of addiction; it also sheds light on the complexities of recovery. Readers get a comprehensive view of how addiction can affect every aspect of a person’s life, from personal relationships to one’s emotional well-being. This portrayal is both heart-wrenching and inspiring, illustrating the arduous journey to sobriety.
Within the pages of this memoir, Matthew Perry does not hold back. He shares the most intimate details of his life, from the heights of his success to the depths of his battles with addiction. His honesty is both refreshing and raw, allowing readers to connect with his journey on a profound level.
In the pages of his memoir, “Friends, Lovers, and the Terrible Big Thing,” Matthew Perry takes a moment to reflect on the profound impact that his time on the iconic TV series “Friends” had on his life. He extends heartfelt gratitude to the friends who became like family both on and off the screen, as well as the devoted fan base who made the show a cultural phenomenon.
Matthew Perry’s portrayal of Chandler Bing was not just a role; it was a deeply personal journey that intertwined with his own experiences and personality. He shares the profound connection he had with the character and the camaraderie he felt with his fellow cast members, who became lifelong friends.
In the memoir, he thanks Jennifer Aniston, Courteney Cox, Lisa Kudrow, Matt LeBlanc, and David Schwimmer for the laughter, support, and friendship they shared during their time on the show. Their genuine bonds extended beyond the scripted lines, and he acknowledges how their off-screen friendships helped create the authentic and enduring chemistry of the characters on “Friends.”
He expresses his gratitude for the show’s writers, producers, and the entire crew who worked tirelessly to bring the magic of “Friends” to life. Their collective effort made the series a beloved part of television history.
“Before that final episode, I’d taken Marta Kauffman to one side,” Perry wrote in “Friends, Lovers, and the Big Terrible Thing.” “‘Nobody else will care about this except me,’ I said. ‘So, may I please have the last line?’ That’s why as we all troop out of the apartment, and Rachel has suggested one last coffee, I got to bring the curtain down on ‘Friends.'”
One of Matthew Perry’s most prominent ventures on the big screen was in the year 2000 when he took on the role of Nicholas “Oz” Oseransky in “The Whole Nine Yards.” This dark comedy introduced Perry as a hapless dentist caught up in a tangled web of crime alongside Bruce Willis. His performance showcased his ability to add a unique charm to the movie through his comedic timing.
A few years later, in 2004, Perry reprised his role as Oz in the sequel, “The Whole Ten Yards.” The film continued the comedic misadventures of the characters, and Perry’s return added to the film’s lighthearted charm.
In 1997, Perry ventured into the realm of romantic comedy with “Fools Rush In.” Here, he starred alongside Salma Hayek, playing the role of Alex Whitman, a straight-laced New Yorker who found himself in a whirlwind romance and unexpected pregnancy with a spirited Mexican-American woman. Perry’s performance skillfully combined humor with emotional depth.
The year 2009 saw him in the supporting role of the older version of Zac Efron’s character, Mike O’Donnell, in “17 Again.” The film explored themes of second chances and the consequences of life choices.
Perry’s presence extended to the realm of television as well. In 2006, he took on a leading role as Matt Albie in “Studio 60 on the Sunset Strip,” a series created by Aaron Sorkin. The show delved into the behind-the-scenes drama and politics of the entertainment industry, and Perry’s performance added depth to the series’ dynamic.
In “The Good Wife,” a critically acclaimed legal drama series, Perry made guest appearances as Mike Kresteva. His recurring role brought layers of complexity to the show’s political and legal dynamics, showcasing his versatility as an actor.
From 2015 to 2017, Perry starred as Oscar Madison in “The Odd Couple,” a TV series adaptation of Neil Simon’s classic play and film. The show provided a modern take on the beloved story and allowed Perry to display his comedic skills once again.
And in “Go On,” which aired from 2012 to 2013, Perry took on the role of Ryan King, a sports talk radio host who joins a support group to cope with the loss of his wife. The show humorously explored themes of grief and personal growth.
‘Friends’ was a magical thing, and no one’s going to ever have anything like that again.
Matthew Perry’s journey through the world of entertainment extended well beyond the confines of Central Perk and his beloved character, Chandler Bing, in “Friends.” As he navigated the highs and lows of his acting career, he left a lasting impact on the realms of both television and film.
Chandler Bing, the lovable character from the iconic TV series “Friends,” was not just a role that Matthew Perry portrayed; he was a character deeply intertwined with the actor’s own personality. The closeness between Chandler and Matthew Perry was palpable throughout the show, and it’s this remarkable connection that made the character so authentic and endearing.
One of the most striking similarities between Chandler and Matthew was their shared sense of humor. Chandler Bing was known for his razor-sharp, sarcastic wit and his knack for delivering perfectly timed one-liners. Similarly, Matthew Perry possessed an impeccable comedic timing and a remarkable ability to infuse humor into every scene he graced. It’s almost as if Chandler’s humor was an extension of Matthew’s own personality.
Matthew’s portrayal of Chandler also carried a depth of vulnerability and complexity that made the character incredibly relatable. Chandler grappled with issues of commitment, self-esteem, and family dynamics, and Matthew Perry’s own personal journey added an authentic layer to the character’s evolution. Matthew had his own battles and struggles, including his well-documented battles with addiction, and these experiences undoubtedly lent depth and authenticity to Chandler’s character.
Furthermore, the chemistry between Chandler Bing and his best friend, Joey Tribbiani, portrayed by Matt LeBlanc, was a central element of the show’s dynamics. The camaraderie and friendship between these two characters were both heartwarming and hilarious. Matthew Perry and Matt LeBlanc’s genuine friendship off-screen undoubtedly played a role in creating the genuine and enduring bond between Chandler and Joey on-screen.
I loved playing Chandler. I grew up playing that part.
The close connection between Matthew Perry and Chandler Bing extended beyond the scripted lines and onto the set. Perry’s portrayal of the character felt so authentic because it wasn’t just acting; it was a reflection of his own personality and experiences. His ability to seamlessly blend his own qualities with those of Chandler Bing made the character relatable, lovable, and enduring.
In many ways, Chandler Bing became a part of Matthew Perry, and their closeness was evident in every episode of “Friends.” The character’s journey, growth, humor, and vulnerability were a testament to the remarkable connection between actor and character. Chandler Bing remains one of the most beloved characters in television history, in no small part due to the authentic and heartfelt portrayal by Matthew Perry, a portrayal that was deeply personal and close to his heart.
And why did I take so long to talk about Friends and Chandler Bing so far behind? It’s because that’s what Matty wanted!
Matthew Perry was buried on Friday at a Los Angeles cemetery in a service attended by relatives and castmates from Friends.
All five Friends co-stars – Jennifer Aniston, Courteney Cox, Lisa Kudrow, Matt LeBlanc and David Schwimmer – were there, TMZ said. Page Six said Perry’s father, John Bennett Perry, and his stepfather, Keith Morrison, were also there.
Matty’s story reminds us that in the face of adversity, there is hope.
That friendship can heal wounds, and redemption is possible for anyone willing to take the first step. He leaves behind a legacy that is more than just the characters he portrayed; it’s a reminder that within each of us, there’s the potential for transformation, resilience, and the capacity to touch the hearts of others.
Reading Friends, Lovers, and the Terrible Big Thing will never be the same again, watching Friends will never be the same again! Goodbye Mattman, The Man, The Myth, The LEGEND, you’ll be missed but never forgotten.
In a recent raid conducted in Denagama, Hakmana, law enforcement authorities apprehended seven suspects, one of whom is a police constable, for possession of heroin. The raid resulted in the seizure of 3 grams and 150 milligrams of heroin from the suspects, including the constable.
The arrested individuals are slated to appear in court on Saturday, the 4th of the month.
President Ranil Wickremesinghe says the UN is treating the Gaza issue in one way while SL is judged in another way: urges the UN to come with clean hands at the UNHRC sessions next September so that SL could answer: questions as to why SL should answer if there is no fairness.
Litro Gas Chairman says the price of a 12.5kg domestic LP Gas cylinder will be increased by Rs.70-90 with effect from today.
Police Media Spokesperson says another 3-week service extension has been granted to IGP C D Wickramaratne.
Sports Minister Roshan Ranasinghe says Sri Lanka Cricket coaching staff is paid close to USD 120,000 per month: this sum is inclusive of USD 30,000 to Head Coach Chris Silverwood, USD 20,000 to Consultant Coach Mahela Jayawardane & USD 14,000 to Assistant Coach Naveed Nawaz.
TMTK Leader and Jaffna District MP C V Wigneswaran says they are extremely disappointed with President Ranil Wickremasinghe’s behaviour: claims that none of the promises made by the President with regard to the Tamil community, particularly in the North and East, have been fulfilled,
Opposition leader Sajith Premadasa accuses the Govt of “shrinking” the economy through its proposal to increase VAT to 18%: claims it will reduce spending & investments: also says Sri Lanka’s problem can only be resolved through economic growth and not through economic shrinkage.
Financial & Commercial Crimes Investigation Division arrests 5 directors of “OnmaxDT” for an alleged fraudulent pyramid scheme: the arrested directors remanded until November 16.
Helicopter carrying President Ranil Wickremesinghe reportedly forced to land at a school playground in the Wellawaya area: the helicopter reportedly had to make an emergency landing as a precaution against a sudden change in weather.
SJB MP Hesha Vithanage says the Sports Minister should get rid of everyone directly connected with Cricket even if Sri Lanka loses ICC membership.
Sri Lanka Cricket calls for an urgent explanation from the coaching staff & selectors after the recent massive defeat at the hands of India in the 2023 ICC Men’s Cricket World Cup: expresses deep disappointment over the performance of the team during the ongoing World Cup 2023.
The National Dengue Control Unit has raised concerns about the increasing number of high-risk zones for dengue. According to its Director, Dr. Nalin Ariyaratne, the number of high-risk zones has surged to 36. Disturbingly, dengue breeding spots have been identified not only in homes but also in public areas, government institutions, and private facilities.
To combat the threat of dengue, the National Dengue Control Unit is urging school students to avoid wearing clothing that exposes their skin in order to protect themselves from dengue mosquitoes.
In 2023, a total of 69,0008 dengue cases have been reported across the island, with 4,000 cases reported in October 2023 alone. Alarming statistics reveal that almost 500 child dengue cases were reported in just the last three days of November.
Starting midnight on Saturday, November 4th, Litro Gas has decided to raise the prices of its products. According to the Chairman of Litro, the cost of a 12.5 kg cooking gas cylinder could increase by Rs. 75 to Rs. 90.
Here are the current prices of Litro products:
12.5 kg: Rs. 3,470/-
5 kg: Rs. 1,393/-
2.3 kg: Rs. 650/-
The previous price adjustment occurred on October 4, 2023.
Heavy showers above 100mm are likely at some places in Central, Sabaragamuwa North-Central provinces and in Mannar, Vavuniya and Mullaitivu districts. Fairly heavy showers above 50mm are likely at some places elsewhere.
Showers will occur in Northern and Eastern provinces during the morning too.
Misty conditions can be expected at some places in Sabaragamuwa, Central and Uva provinces during the morning.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
This short article is an update on the previous article on this subject (See previous article) to cover the month of October.
The article continues to raise grave concerns over the present model of monetary policy as it is carried out only to fund wholesale money dealers seeking short-term profit as against a policy of wider credit distribution required across the sectors targeted to revive the economy.
The target group of the article is the economists conversant with new concepts and practices on the monetary policy.
What are the present monetary operations in Sri Lanka?
Monetary operations are the money printing operations carried out by the CB on a daily basis for the purpose of keeping the inter-bank daily liquidity conditions consistent with the monetary policy decisions. Key monetary policy decision made in the present monetary model is the level of two policy interest rates, i.e., standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) or policy interest rates corridor.
These are the interest rates applied by the CB for its overnight financial operations with commercial banks. In addition, instruments such as SRR are used on need-basis to have further effect on bank liquidity conditions.
The prime objective of monetary operations is to limit the variability of overnight inter-bank interest rates within the policy interest rates corridor. Therefore, the monetary policy is a price control-based market intervention.
However, other central bank uses different policy models.
What are the present monetary operation instruments?
Standing facilities, reverse repo lending and direct purchase of Treasury bills have been the mostly used instruments in 2023 so far.
Standing facilities – CB’s acceptance of deposits and lending on overnight basis at SDFR and SLFR with commercial banks and primary dealers. Since the middle of January 2023, the facility has been subject to caps for commercial banks, i.e., the deposit facility to any bank only five days a month and lending facility only to 90% of the SRR of a bank any day.
Reverse repos – CB’s lending to banks and primary dealers against government securities on overnight or other terms through competitive auctions. Overnight and 7-day reverse repos are seen regularly.
Direct purchase of Treasury bills – CB’s purchase of Treasury bills as and when necessary to control yield rates by providing funds directly to the government. This indirectly enhances the inter-bank market liquidity and reduces the pressure on interest rates.
Intra-day liquidity facility – This facility provides funds free of interest charge banks and primary dealers against collateral of government securities for payment purposes, subject to repayment within the day. Therefore, it is a significant source of liquidity for funding their daily business needs. However, the CB does not release relevant data. In 2022, daily average use of funds was around Rs. 658 bn (total annual amount of Rs. 51 trillion) which is a huge sum of free funds.
What are the key monetary policy decisions taken in 2023?
Policy interest rates – raised by 1% to 15.5%-16.5% in March and then reduced by 5.5% to 10%-11% so far from the end of May.
SRR – cut by 2% to 2% to free nearly Rs. 200 bn of reserves to commercial banks.
Stipulation of maximum interest rates on bank credit products – This is to require banks to reduce interest rates in line with the present easing cycle of the monetary policy.
Highlights of Monetary operations
Standing Facilities – SDF and SLF operations
Due to caps imposed with effect from 16 January 2023, this window has virtually collapsed (see Chart 1 below) as shown by highly irregular volatility of the facilities. This has led banks to resort to other options for daily liquidity management and confronted significant market volatilities. Further, policy interest rates corridor-based monetary policy concept also has collapsed due to caps/rationing of standing facilities.
Chart 1
Reverse repo lending
This has become a regular event to prevent the rise in inter-bank interest rates above the policy rates corridor consequent to caps on the lending facility.
Accordingly, nearly 198 auctions offered Rs. 11,195 bn and accepted bids of Rs. 8,493 bn (76%) out of total demand for Rs. 10,537 bn.
Overnight reverse repo auctions became a daily routine with 86 auctions offering Rs. 7,905 bn or 70% of all auctions (see Chart 2 below). Average overnight auction amount was Rs. 74 bn with the acceptance rate of 76.2%.
A fast reduction in overnight volume is seen from the mid-August due to the reduction in funding requirements consequent to significant contraction in bank credit operations. Therefore, the significant volatility is a stability concern.
Chart 2
The determination of rates at overnight auctions is questionable on several grounds (see Chart 3 below). First, rates have been lower than SLFR by about 40-90 basis points although credit quality is same for both types of lending. Second, rates have been mostly lower than overnight call money rates by about 10-40 basis points. Therefore, overnight reverse repo rate has become the de-facto policy interest rate used to drive the inter-bank market. This is because of the collapse of the policy rates corridor as stated above. Third, the overnight reverse repo rate has seen converging towards the SDFR, the lower bound of the corridor, in most part of October.
Chart 3
7-day reverse repo auctions also were used frequently to inject short-term funds so that the pressure on overnight inter-banks rates is held down (see Chart 4 below).
Accordingly, 50 auctions offered Rs. 1,865 bn with the acceptance rate of 78.8% (Rs. 1,480 bn).
The significantly higher demand/bids for 7-day funds has been a general feature. Therefore, the CB has misjudged the demand by offering lower amounts.
Chart 4
Holding 7-day reverse repo rates at the level of or below the SLFR is highly questionable as to why banks were offered funds cheaper than the overnight SLFR while restricting the standing lending unnecessarily (see Chart 5 below). However, since the last week of September, 7-day reverse repo rates have been declining well below the SLFR and touching the SDFR, which has no rationale in economics of term premium.
Chart 5
Long-term reverse repo auctions of several tenures from 10 days to 89 days also have been conducted in an irregular manner, probably targeting resolution of liquidity problems of identified dealers. Nearly 39 such long-term auctions offered Rs. 1,185 bn and accepted Rs. 1,010 bn (74%). The basis and levels of rates of these auctions are seen highly questionable as to what the monetary policy relevance is, given the fact that the monetary policy is exclusively driven for the target of overnight inter-bank rates.
Direct purchase of Treasury bills
It has been customary for the CB to subscribe to Treasury bill issuances in order to control short-term interest rates in line with the monetary policy. In fact, the Treasury bill auction yield has been a de-facto policy interest.
Accordingly, the CB has been managing the monetary system broadly with a government securities portfolio in the range of Rs. 2,500 bn and Rs. 2,600 bn on a daily basis during the reference period. Several bumps above Rs. 2,500 bn to Rs. 2,800 bn were also reported (see Chart 6 below).
The bump reported on 21 September is specific to the conversion of outstanding provisional advances (Rs. 344.7) made by the CB to the government into government securities under the domestic debt optimization concept. As a result, the CB’s holding of government securities rose to a historic high of Rs. 2,901 bn (face value). However, the reason for its decline to around Rs. 2,839 bn on 22 September is not known. As the CB has not subscribed to any Treasury bill issuances after 21 September, the portfolio remains unchanged at around Rs. 2,839 bn. As a result, the conversion is only a change in book entries.
Chart 6
Overall outcome on liquidity
Overall, the amount of net liquidity (injected or absorbed) resulting from monetary operations has been highly irregular (see Chart 7 below) on both overnight basis and outstanding basis. The injection on overnight basis has declined due to drastic restrictions/rationing on standing facilities.
However, the injection on outstanding basis has remained higher due to the cumulative effect of term reverse repo auctions pursued to push the inter-bank interest rates artificially down.
A drastic decline in injection is observed in September-October despite the monetary policy easing shown by the policy rates cut of 5.5% since the beginning of June. In fact, liquidity injection should rise in the monetary easing cycle if monetary principles are adhered to. Therefore, irregularities observed in the liquidity levels and interest rates raise concerns over the real motive behind monetary operations.
Chart 7
Money market outcomes of monetary operations
Overnight inter-bank market (volumes and interest rates)
The data do not support the monetary policy hypothesis of restricting standing facilities in mid-January. i.e., to activate the inter-bank market (overnight call money and overnight repos) and drive down interest rates accordingly without policy interest rates cuts.
First, inter-bank market volumes have not surged as expected (see Chart 8 below). Instead, market volumes have been highly volatile and remained at lower levels except few spikes.
Chart 8
Second, inter-bank overnight rates (call money and repo rates) have been mostly around the SLFR, the upper bound of the policy rates corridor (see Chart 9 below). A downward movement is observed since August after 4.5% cumulative cut in policy rates since June. However, a parallel reduction is not observed from overnight market repo rates.
The ease of the market liquidity due to a release of Rs. 200 bn consequent to the SRR cut by 2% in August could be an factor to push down call money rates, but this amount is not material enough to justify the fall of inter-bank market rates. However, a market aberration is seen as market repo rates have not declined parallelly.
Chart 9
Treasury bill primary market
The acceptance of bids in excess of offered amounts and rising access to post-auction private placements without exposing to bidding risk have been regular features of weekly auctions (see Chart 10 below).
A significant reduction in the offer is observed after 21 September. The reason is the reduction in rollovers consequent to the conversion of the CB’s Treasury bill portfolio of around Rs. 2,556 bn (face value) into 10 new medium and long-term Treasury bonds (maturing from 15 March 2029 to 15 June 2038). Therefore, the government will have a significant fiscal space through borrowing from Treasury bill market.
Chart 10
The market demand has been primarily for 91-D maturity, given significant uncertainties amidst the debt restructuring bottlenecks and debt sustainability concerns (see Chart 11 below). The significant volatility across accepted maturities is a grave concern over the market uncertainties.
Chart 11
As in the past, the manipulation of yield rates to serve the requirements of the monetary policy, given the limited scope available with policy interest rates-based monetary policy model, continued to be observed (see Chart 12 below). The conduct of auctions as well as underwiring by the CB have been instrumental in this manipulation.
The CB’s reluctance to reduce Treasury bill yield rates during the last three months despite the monetary policy thrust on lower interest rates is questionable. Given the significant reduction in the offers in October, reduction in yield rates is seen too marginal and not commensurate.
Chart 12
The new legislation permits the CB to subscribe to auctions up to the total outstanding of 10% of Treasury bill borrowing limit within a period of 18 months from 14 September. Therefore, the CB will continue to use Treasury bill auctions to manipulate short-term interest rates as usual without using monetary policy instruments.
Public Concerns
Monetary operations to fund wholesale trades of short-term profit-seeking money dealers who does not pay any attention to financial stability and macroeconomic outcomes.
Facilitating these dealers through reverse repo auctions that manipulate amounts and rates inconsistent with the present monetary policy model.
Monetary system risks as private securities and shadow banks (finance and leasing companies) also are due to be covered soon in monetary operations consequent to new central bank legislation effective from 14 September 2023 while the purchase of government securities is prohibited after a period of 18 months from 14 September.
Wholesale money dealers free to drive market interest rates as they wish because maximum interest rate regulation on bank credit products has now seized to operate consequent to the new central bank legislation.
IMF 1st review concerns raised over financial stability requiring a roadmap for addressing banking system capital and liquidity shortfalls and improving the bank resolution framework which indicates no purpose of CB’s monetary/liquidity operations.
Monetary operations not serving the recovery of the economy from the bankruptcy caused by the CB itself as monetary operations do not cover instruments to promote credit distribution across the needy sectors.
Non-availability of audit and internal controls to guard against the loss to public funds arsing from such money printing carried out in arbitrary manner.
National risk as no national leaders or economists are knowledgeable to voice concerns over the present monetary bureaucracy that has already bankrupted the economy.
(This article is released in the interest of participating in the professional dialogue to find out solutions to present economic crisis confronted by the general public consequent to the global Corona pandemic, subsequent economic disruptions and shocks both local and global and policy failures.)
P Samarasiri
Former Deputy Governor, Central Bank of Sri Lanka
(Former Director of Bank Supervision, Assistant Governor, Secretary to the Monetary Board and Compliance Officer of the Central Bank, Former Chairman of the Sri Lanka Accounting and Auditing Standards Board and Credit Information Bureau, Former Chairman and Vice Chairman of the Institute of Bankers of Sri Lanka, Former Member of the Securities and Exchange Commission and Insurance Regulatory Commission and the Author of 12 Economics and Banking Books and a large number of articles published.
The author holds BA Hons in Economics from University of Colombo, MA in Economics from University of Kansas, USA, and international training exposures in economic management and financial system regulation)
