Acting Minister of Finance Shehan Semasinghe says the process of domestic debt optimization is not finalized yet: also says the govt has made progress in engaging with its bilateral creditors on debt restructuring efforts: previously, CB Governor Nandalal Weerasinghe had repeatedly insisted that there would be no domestic debt restructuring.
Former CB Governor and State Minister Ajith Nivard Cabraal says the Real Economy has been severely affected from 2Q2022 onwards after the reckless debt default, the unprecedented policy interest rate increase, and by allowing the LKR to depreciate beyond Rs.299 per USD: CB data shows that massive economic contractions of 8.4%, 11.8% and 12.4% in 2Q, 3Q, and 4Q of 2022, and a contraction of 11.5% in 1Q2023 have occurred.
LKR crashes by a massive Rs.21.72 or 7.3% in just over 1 week from Rs.297.94 on 06.06.2023 to Rs.319.66 by 16.06.2023: as predicted by several analysts, this currency depreciation triggers the expected exodus of “hot-money” from T-Bill & Bond investments, which record a decrease of around USD 28.9 mn (or 4.5%) in the same week.
President Ranil Wickremasinghe to participate in the Global Leaders’ Summit for a New Global Financing Pact in Paris on June 22 & 23: President accompanied by a high-level delegation that includes his Chief of Staff Sagala Ratnayake: summit to focus on multiple crises such as climate change, bio-diversity loss, ongoing impacts of COVID-19, etc.
Police begin probes on the mysterious deaths of 2 undergraduates from the North who had been found hanging in their respective hostels at 2 different universities.
National Child Protection Authority to seek Cabinet approval to amend the Penal Code in relation to cruelty towards children.
The Epidemiology Unit states a total of 45,606 Dengue cases have been reported so far in 2023: highest number of 10,111 from Gampaha district: 67 high-risk MOH areas identified: 27 fatalities reported since January 2023.
Transport Minister Dr. Bandula Gunawardana says a bus transport service without conductors will be introduced from July 1st: with the new mechanism, SLTB expects to end the pilfering of revenue by conductors: pilot project will be to run SLTB buses on all expressways without conductors from July 1st.
Minister of Energy Kanchana Wijesekara says there is no shortage of Petrol 95 stocks or any other petroleum products with CPC & LIOC: insists that adequate stocks are available with fuel stations and all orders placed will be distributed: asserts the next cargo of 9,000 MT of Petrol 95 is due to arrive on June 22.
Indian submarine ‘Vagir’ which is of the latest indigenous Kalvari-class, to undertake an operational visit at Colombo from 19-22 June 2023: the submarine visit is to commemorate the 9th “International Day of Yoga” under the theme of ‘Global Ocean Ring’ which is a unique initiative of performing Yoga on selected ports across the world.
Colombo (LNW): Minister of Power and Energy Kanchana Wijesekara said there is no shortage of Petrol 95 stocks or any other petroleum products with the Ceylon Petroleum Corporation and the Lanka Indian Oil Company.
In a tweet, the Minister noted that daily requirement of Petrol 95 is about 80-100 metric tonnes islandwide, and there are adequate stocks available with fuel stations and all orders placed will be distributed.
The next cargo of 9000 metric tonnes of Petrol 95 is due to arrive on the 22nd of June, he added, reminding that there are no deliveries on Sundays.
Stock Details as at 2023/06/18 08:30 hrs
For All CPSTL/CPC Plants
Diesel – 103,087
Sup. Diesel – 2,977
92 Pet – 53,632
95 Pet – 601
JET A1 – 37,316
(All figures in MT)
There is no shortage of Petrol 95 stocks or any other petroleum products with CPC & LIOC. Daily requirement of Petrol 95 is about 80-100 MT islandwide. There’s adequate stocks available with fuel stations & all orders placed will be distributed. The next cargo of 9000 MT of… pic.twitter.com/RAl9qOQ2Zc
ECONOMYNEXT – Robust anti-corruption legislation will help Sri Lanka rank higher in global transparency and ease-of-doing business indices, according to a government official who invited all parties to cooperate in passing the proposed anti-corruption bill.
State Minister of Finance Shehan Semasinghe told reporters on Saturday June 18 that Sri Lanka, as it progresses on the economic front, is now able to signal to the world that it is more transparent and has the capacity to address any irregularities.
“Next week, when this bill is brought to parliament, I believe we will be able to take that forward,” he said.
Stringent implementation of anti-corruption legislation will greatly and productively help a country’s standing in terms of transparency and ease of doing business, he said.
Sri Lanka gazetted a new anti-corruption bill after the International Monetary Fund (IMF) approved a 2.9 billion US dollar loan which required the crisis-hit nation to address corruption vulnerabilities.
President Ranil Wickremesinghe said on April 02 that Sri Lanka will enact key points of its agreement with the IMF into law upon parliamentary approval, one of which would be new anti-corruption legislation which he said would likely be enacted in May.
Some of the objectives of the proposed Act are to prevent and eradicate bribery and corruption in order to meet the just requirements of the general welfare of a democratic society, enhance transparency in governance, strengthen integrity of governance and increase accountability, enhance public confidence in government and strengthen public participation to eradicate corruption.
The Act also envisions establishing an Independent Commission to exercise and perform the powers and functions under the Act and to carry out the responsibilities imposed. The said commission will be mandated to conduct preliminary inquiries and investigations into, and to prosecute against, bribery, corruption, offences relating to declaration of assets and liabilities and associated offences.
The draft bill, if enacted, will enable the authorities to conduct and coordinate educational activities on the prevention of bribery and corruption, introduce an effective system for the declaration of assets and liabilities in order to prevent illicit enrichment by public officials, promote inter-agency cooperation and international collaboration in preventing bribery and corruption, and give effect to obligations under the United Nations Convention against corruption and any other International Convention relating to the prevention of corruption to which Sri Lanka is a party and recognise international standards and best practices in order to establish a culture of integrity in Sri Lanka.
In the lead up to its board approval of the 2.9 billion dollar loan, the IMF had urged Sri Lanka to reduce corruption vulnerabilities through improved fiscal transparency and public financial management, introducing a stronger anti-corruption legal framework, and conducting an in-depth governance diagnostic, supported by IMF technical assistance.
A top IMF official said in May that the governance diagnostic report is expected to be completed by September and the global lender will spell out measures to improve the island nation’s governance system.
Sri Lanka is the first country in Asia to undergo an IMF governance diagnostic under the global lender’s key structural reform to address corruption vulnerabilities and enhance growth.
Sri Lanka’s Supreme Court in early June determined that several clauses in the bill are inconsistent with the constitution.
Sections 1, 2(1)(f), 2(2), 3(2), 4(1)(a), 4(1)(b), 4(3), 17(1), 21, 31(2), 163(2)(h), 40, 48(3), 49(1)(f), 51(a), 53(1), 62(1), 65, 67(5), 71(6), 80, 93, 99, 101, 112, 149 and 162 were flagged as inconsistent with the constitution, Speaker of Parliament Mahinda Yapa Abeywardena said citing the determination.
However, the inconsistencies flagged by the court will cease if the amendments as set out in the verdict are made to the bill, the speaker said.
The bill was challenged in terms of Article 121(1) of the constitution.
Amendments to clauses 83(3), 136, 141, 142 and 156 of the bill as set out in the determination will be made to address several concerns raised by the petitioners, the court was informed.
Notably, Section 119 of the bill which has proved controversial was not flagged by the Supreme Court as being inconsistent with the constitution, as per the Speaker’s statement.
Two patients died after being given Indian-made anaesthetic drugs; Indian-made eye medication caused visual impairment in 10 patients; SL faces two-fold crisis of drug shortage, quality concerns
The Hindu: Imported Indian drugs are at the centre of a medical storm in Sri Lanka, following cases of medical complications and fatalities, reportedly after patients were administered medicines sourced from India.
On June 16, local media reported the death of a patient undergoing treatment at the Peradeniya Teaching Hospital, in the Kandy district, after being given the Indian-manufactured anaesthetic Bupivacaine. The news sparked concern among locals, especially since the incident came less than two months after a pregnant woman was reported dead at the hospital, after being given an Indian anaesthetic drug. Following the April incident, the Health Ministry suspended the use of that drug.
Unregistered suppliers
Even prior to these incidents, Transparency International Sri Lanka had filed a fundamental rights petition in the Sri Lankan Supreme Court, challenging the decision of the Cabinet and health authorities to procure drugs from unregistered suppliers. The petition further questioned the national drug regulator’s role in providing a waiver of registration to allow for the swift import of essential drugs. Gujarat-based Savorite Pharmaceuticals (Pvt) Limited and Chennai-based Kausikh Therapeutics were named as respondents. Early in April, the Supreme Court granted leave to proceed in the case and suspended imports from these companies.
Indian drugs made the news yet again in May 2023, when doctors at the general hospital in Nuwara Eliya, in Sri Lanka’s Central Province, reported complaints of visual impairment among 10 patients who were administered Indian medicines after eye surgery. The doctors cited the “presence of germs” in the eye medication as a reason for their patients’ condition. Health authorities initiated an inquiry and withdrew the drug to prevent further use.
India is top source
The series of incidents have brought Indian drugs under sharp scrutiny within Sri Lanka, including in the local media, which has urged Sri Lankan authorities to “nip a possible national-level health threat in the bud”. Some highlighted the cases of Gambia and Uzbekistan, where Indian-made cough syrups were recently linked to the deaths of dozens of children.
For years, India has been Sri Lanka’s top source of medical supplies, accounting for nearly half of its pharmaceutical imports that in 2022 totalled about $450 million. The trading link became more crucial in the wake of Sri Lanka’s unprecedented economic meltdown last year, that led to critical shortages, including medicines. The crisis-hit country continued procuring essential medical supplies from India, through the credit line offered by the Government of India, as part of its nearly $4 billion assistance to the island nation.
Inquiry ongoing
The death reported at the Sri Lankan hospital last week has brought the quality of imported drugs, as well as the responsibility of Sri Lanka’s national drug regulator, back to the national headlines.
When contacted, Minister of Health Keheliya Rambukwella said that authorities were conducting tests, adding that a report was expected soon. Sri Lanka has been importing eye medication from the same Indian supplier for seven years, well before the Indian credit line came into effect, he said. “Sometimes, there could be a quality failure in a particular batch or a problem with storage or transportation. Sometimes, patients may not be aware of their allergy to a drug. We have withdrawn the drugs for now, we are looking into the matter and have also sought compensation from the Indian manufacturers,” he told The Hindu on Sunday.
‘Two-fold health crisis’
Vinya Ariyaratne, president of the Sri Lanka Medical Association, said that these recent cases reflect a larger “two-fold” crisis facing Sri Lanka’s health sector: the persistent shortage of drugs on the one hand, and the serious concerns being raised about the quality of available drugs, on the other.
The situation is “a national health emergency” requiring attention from the “highest levels”, he told The Hindu. Despite the government importing medicines through the Indian credit line, shortages continue to affect Sri Lanka’s public health care system. Several drugs administered for routine medication, as well as vital drugs prescribed for patients affected by cancer and kidney ailments, are in short supply across government hospitals, forcing low-income families to buy them from private pharmacies.
“There is no price regulation at pharmacies and even basic drugs, such as those for diabetes, are very expensive. Patients from poor families cannot afford these medicines, and they regulate their own dosage, which can be very dangerous,” Dr. Ariyaratne said. “Doctors practising in the public healthcare system are reliant on donations for drugs and reagents [used for lab tests]. It is not sufficient or sustainable.”
‘Weak regulation’
As for the apparent failure in quality control, the senior medical practitioner pointed to Sri Lanka’s “weak” regulatory system as the “main problem”.
“The NMRA [National Medicines Regulatory Authority] is totally dysfunctional. The waiver of registration has allowed all sorts of medical procurements without any due process or accountability. We have to address this problem urgently if Sri Lanka is to have a proper supply of good quality drugs in at least six months’ time,” Dr. Ariyaratne said.
Colombo (LNW): The compensation estimated for the damage caused by the MV X-Press Pearl maritime disaster is at US$ 6.4 billion, revealed the Attorney General’s Department.
The compensation was estimated following the report in January, the AG’s Office said.
A team will leave for Singapore next month for the legal proceedings related to the damage, and discussions will be held with the relevant shipping company and other representatives in Singapore, it added.
The Pakistan Naval Ship (PNS) ‘Tippu Sultan’ arrived at the Port of Colombo on a formal visit this morning (18th June 2023). The visiting ship was welcomed by the Sri Lanka Navy in compliance with naval traditions.
PNS ‘Tippu Sultan’ is a 134.1 m long warship which is manned by a crew of 168. She is commanded by Captain JAWWAD HUSSAIN TI.
During the ship’s stay, the crew will take part in several programmes organized by the Sri Lanka Navy, with a view to promoting cooperation and goodwill between two navies. They are also expected to visit some of the tourist attractions in the country. Today, Sri Lanka Navy personnel visited PNS ‘Tippu Sultan’, where they were briefed about the ship’s operational capabilities.
Concluding her official visit, PNS ‘Tippu Sultan’ will depart the island on 20th June and she is expected to engage in a Passage Exercise (PASSEX) with a Sri Lanka Navy ship off Colombo.
PMD: President Ranil Wickremesinghe was presented with the ‘National Physical Planning Policy Draft – 2048’ ( June16) afternoon at the Presidential Secretariat, marking a significant step in the country’s urban development and housing initiatives. The draft was formally handed over by Urban Development and Housing Minister Prasanna Ranatunga, emphasizing the government’s commitment to comprehensive and inclusive planning.
The meticulous preparation of the ‘National Physical Planning Policy Draft – 2048’ was undertaken by the National Physical Planning Department. This involved integrating a wide range of projects and programs from various ministries, departments, and related institutions. The collaborative effort aimed to ensure a cohesive approach to national development, aligning diverse sectors under a unified policy framework.
Following a rigorous evaluation process, the inter-ministerial secretaries’ committee unanimously recommended the draft for consideration. Consequently, the document was submitted to the National Physical Planning Council (NPPC), presided over by President Wickremasinghe, to seek final approval. The involvement of the NPPC ensures that the policy draft receives the highest level of scrutiny and is aligned with the overarching vision for the country’s physical development.
To commemorate this momentous occasion, a gathering was organized in which key stakeholders participated. Alongside President Wickremesinghe, attending the event were ministers representing the ministries that hold membership in the National Physical Planning Council. The Provincial Governors, the President’s Secretary Mr. Saman Ekanayake, the President’s Senior Adviser on Economic Affairs Dr. R.H.S. Samaratunga, and secretaries of ministries, as well as heads of line agencies associated with the Council, were also present.
The presentation of the ‘National Physical Planning Policy Draft – 2048’ to the President signals a significant milestone in Sri Lanka’s efforts to streamline its development initiatives. With careful consideration of various projects and programs, this policy framework aims to provide a roadmap for sustainable urban growth, enhance housing infrastructure, and foster the overall progress of the nation. As the draft undergoes scrutiny and subsequent approval, it is expected to serve as a crucial tool in shaping the future of the country’s physical landscape.
Colombo (LNW): The government’s program of domestic debt optimisation has not yet been finalised, and the government is fully committed to ensure the stability of the banking and financial sector, revealed State Minister of Finance Shehan Semasinghe.
In a tweet, the Finance State Minister asserted that the government has made progress in engaging with Sri Lanka’s bilateral creditors on debt restructuring efforts, and that they are optimistic that the engagements will lead to a favourable agreement for sustainability.
“The process of domestic debt optimisation has not been finalised yet. The government is fully committed to ensuring the stability of the banking and financial sector. Recognising the sensitivity, premature speculations without a conclusion could potentially undermine market confidence. Therefore, it is important that we speak on this matter responsibly and diligently. We have made progress in engaging with our bilateral creditors on debt restructuring efforts. We are optimistic that the engagements will lead to a favourable agreement to achieve stability,” Semasinghe tweeted.
(1/2) The process of domestic debt optimization is not finalized yet. The govt is fully committed to ensure the stability of the banking and financial sector. Recognizing the sensitivity, premature speculations without a conclusion could potentially undermine market confidence pic.twitter.com/oncDCOn9Hc
Colombo (LNW): Former Foreign Minister Rohitha Bogollagama is to be appointed as the new Sri Lankan High Commissioner to London, UK, sources said.
Bogollagama, who is mostly speculated as a pro-western politician in Sri Lanka, was previously invited to accept the post of Sri Lankan Ambassador to China, but denied the offer.
Based on his interest in the western, Bogollagama had asserted that he would accept a diplomat position in a country like the United States or the United Kingdom, according to sources.
President Ranil Wickremesinghe, who is currently touring in the UK, is set to attend the birthday party of Neranjan Devaditya, an MP of the European Parliament, and is expected to visit France thereafter, in continuity of his official tour in the European region.
Following the President’s return, Bogollagama is believed will be appointed as the Sri Lankan High Commissioner to London.
