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Former US President Donald Trump to be Indicted over Hush Money Payment

News

March 31, 2023

Former US President Donald Trump to be Indicted over Hush Money Payment

Former US President Donald Trump is set to face a criminal charge after a grand jury voted to indict him over hush money payments made to adult film actress, Stormy Daniels, just before the 2016 presidential election. The charge against Mr. Trump, 76, is related to a $130,000 pay-out to Daniels in an attempt to buy her silence over an alleged affair, which Mr. Trump denies.

The office of Manhattan District Attorney Alvin Bragg, who has been pursuing the investigation, has confirmed that it had contacted Mr. Trump’s attorney to “co-ordinate his surrender” on unspecified charges. Mr. Trump is expected to fly to New York on Monday and be arraigned in court on Tuesday.

According to two sources familiar with the matter, the charges in the indictment will be read to him at the hearing, which is set to last about 10-15 minutes. The United States Secret Service, which is tasked with protecting serving and former US presidents, will be in charge of security for the court appearance.

In 2016, Stormy Daniels contacted media outlets offering to sell her account of what she said was an adulterous affair she had with Donald Trump in 2006 – the year after he married his current wife, Melania. Mr. Trump’s team got wind of this, and his lawyer Michael Cohen paid $130,000 to Ms. Daniels to keep quiet, which is not illegal.

However, prosecutors allege that when Mr. Trump reimbursed his lawyer, the record for the payment says it was for legal fees, which they say amounts to Mr. Trump falsifying business records, a criminal offense in New York. If convicted, Mr. Trump will be the first serving or former US president to face a criminal charge.

Sri Lanka Sees Another Surge in Gold Prices

News

March 31, 2023

Sri Lanka Sees Another Surge in Gold Prices

Sri Lankan gold merchants have reported a surge in the price of gold yet again. According to local sources, the price of gold has increased by Rs. 2000 on March 31st. This means that the cost of a 22-karat sovereign has increased from yesterday’s rate of Rs. 163,800 to Rs. 165,600, while the price of a 24-karat gold sovereign has increased from Rs. 178,000 to Rs. 180,000.

This latest surge in gold prices follows a significant drop earlier in March, when a 22-karat sovereign cost Rs. 134,000 and a 24-karat gold sovereign cost Rs. 145,000 on March 9th, 2023. The increase has left many Sri Lankans wondering about the future of the gold market in the country.

As gold continues to be a popular investment option for many Sri Lankans, any change in its price is closely monitored. The reasons for this latest increase in gold prices are not yet clear, but it is expected to have an impact on the country’s economy and investment trends in the coming days.

IMF’s strategy on social spending facing austerity: new direction or bandaid?

News

March 31, 2023

The hybrid session “IMF’s strategy on social spending facing austerity: new direction or bandaid?” will be held on Wednesday, April 12th, 2023, from 2:30 pm to 4:00 pm EDT in the IMF HQ2-03B-768B meeting room. The 2023 Spring Meetings of the World Bank Group and the IMF and the Civil Society Policy Forum will take place from April 10 to April 16, 2023 in Washington DC.

To participate online, here is the link for the session: https://imf.zoom.us/j/98300942112?pwd=NlZQLzVvdU5pbGVjeGdyZThvWFZxZz09
Registration is not needed for those that will be joining sessions on zoom.
Furthermore, the session will be broadcast on the IMF website: www.imf.org/cso.

To check your local time zone, please click here.

For those participating online, simultaneous interpretation will be available to Spanish, French, and Arabic.

Civil society welcomed the IMF’s new policy on social spending in 2019. However, we are concerned that spending on social protection, health and education is still not given sufficient priority in government budgets. Indeed, we fear conditionality in IMF country programs will continue to negatively impact essential social spending. How should IMF and other international agencies, labor movements and CSOs each work to enhance and protect national social spending programs? And, how might international cooperation be strengthened to assure more adequate, efficient, universal and sustainably financed social protection and social services in all countries.

The event is co-organized by the Global Coalition for Social Protection Floors (GCSPF), Bretton Woods Project, Human Rights Watch, International Trade Union Confederation, Kvinna till Kvinna Foundation, NGO Committee on Financing for Development, Oxfam International, Social Justice in Global Development, Social Policy Initiative (South Africa).

Moderator: Alex Cambpell, International Trade Union Confederation (ITUC)

Panelists

Rodrigo Cerda, IMF
Shahra Razavi, Director, Social Protection Department, ILO
Alexander Kentikelenis, Oxfam International
Ahilan Kadirgamar, Senior Lecturer, Department of Sociology, University of Jaffna, Sri Lanka

Sri Lanka’s China swap of US $1.4 billion to be extended for three years

BUSINESS

Radi

March 31, 2023

Sri Lanka’s China swap of US $1.4 billion to be extended for three years

By: Staff Writer

Colombo (LNW):A swap with the People Bank of China is to be extended for another three years from 2024, according to documents released with the approval of a deal with the International Monetary Fund.

“…The PBoC has indicated that it will consider renewing its swap arrangement with the CBSL in 2024 for another three years, if there is no significant situation change,” according to program documents.

According to projections in the IMF program, a 200 million dollar swap with the Bangladesh central bank is expected to be repaid in 2023. A 400 million US dollar swap with the Reserve Bank of India is to be repaid in 2024.

Central bank swap lines of the type was invented by the Fed in the 1960s when it was printing too much money to suppress interest rates and threatening the exchange rate, which was pegged at 35 dollars an ounce.

Charles Coombs, head of the foreign exchange (desk at the Federal Reserve Bank of New York is crediting with inventing the swaps to avoid returning gold to the European central banks.

In the run up to the collapse of the US dollar in 1971-22 moves to expand swaps was resisted by some European banks as it was viewed as a tool by Fed tgo “prop up the dollar” and delay going to the International Monetary Fund to fix “deep seated” problems with the US dollar.

The 1.4 billion US dollar Chinese Yuan swap cannot be used if gross international reserves fall below 3 months of past year’s imports.

Using reserves (past savings) for imports at a given policy rate requires inflationary open market operations to offset liquidity shortages, when domestic credit demand is high, which in turn drives unsustainable imports and worsens a currency crisis.

Using central bank swaps for imports, leads to the central bank getting into external debt to effectively re-finance unsustainable domestic credit.

The rule by PBoC, which blocked the use of its swap after reserves fell below 3 months, stopped the central bank getting further into debt.

When forex shortages emerge from inflationary open market operations (liquidity injections made to keep an artificially low policy rate for flexible inflation targeting or output gap targeting) the credit system runs into forex shortages the loses the ability to exchange and settle foreign transactions and maturing debt with rupee cash inflows at the previous exchange rate.

The island then tends to borrow heavily abroad, a phenomenon officials call ‘bridging finance.

SL seeks transaction advice from IFC to sell three state owned enterprises

BUSINESS

Radi

March 31, 2023

SL seeks transaction advice from IFC to sell three state owned enterprises

By: Staff Writer

Colombo (LNW): The Sri Lanka government is negotiating with the International Finance Corporation (IFC), a member of the World Bank Group, to seek its service as transaction advisor for the sale of the government’s stakes in several state-owned enterprises (SOEs).

The State-owned Enterprise Restructuring Unit (SRU) said the Finance Ministry is negotiating with the IFC to obtain its services to divest the state ownership in SriLankan Airlines, Sri Lanka Telecom PLC (SLT) and Lanka Hospitals Corporation PLC.

Meanwhile, the Finance Ministry has decided to advertise in local as well as international newspapers and via LinkedIn on March 30, calling for Expressions of Interest (EOI) from consultancy firms interested in providing sell-side transaction advisory services for the sale of the government’s ownership in several state owned enterprises.

These entities are Sri Lanka Insurance Corporation, Litro Gas Lanka Ltd and Litro Gas Terminals Ltd, Hotel Developers Lanka Ltd (The Hilton, Colombo) and Canwill Holdings (Pvt.) Ltd (Grand Hyatt, Colombo).

The SRU said the interested firms would be required to respond to Request for Proposal (RFP) documents as well when responding to the EOI.

Firms are free to express interest with respect to one or more of the SOEs that are identified for divestiture. Responses must be submitted on or before 4:00 p.m., on April 27, 2023.

The SRU said the Quality and Cost Based Selection method of the government’s Consultant Procurement Guideline would be used to select transaction advisors.

The transaction advisors are expected to assist the SRU with sell-side due diligence, valuation, data room creation, transaction strategy and marketing of the entities to be divested.

“The divestitures will be carried out by the SRU in a transparent and credible manner, following an EOI/RFP process, which will be published in the local and international press. Unsolicited proposals will not be entertained,” the SRU said.

The transaction advisors will, inter-alia, assist the SRU with sell-side due diligence, valuation, data room creation, transaction strategy and marketing of the entities to be divested.

The divestitures will be carried out by the SRU in a transparent and credible manner following an EOI/RFP process which will be published in the local and international press. Unsolicited proposals will not be entertained.

Bitcoin Scammer Remanded Until for Defrauding Rs. 1375 Million

News

March 31, 2023

Bitcoin Scammer Remanded Until for Defrauding Rs. 1375 Million

In a recent development, an individual who defrauded Rs. 1375 million through a bitcoin scam has been remanded until April 6th, 2023. According to the Daily News, the suspect was arrested by the Criminal Investigations Department (CID) for carrying out the financial scam through BINANCE social media.

The suspect was brought before Colombo Chief Magistrate Prasanna Alwis, who ordered him to be remanded. The arrest came after a female victim lodged a complaint with the CID, claiming that the suspect had joined her to increase her bitcoins but instead defrauded her.

The CID is currently conducting further investigations into the incident to identify any other victims and bring the perpetrator to justice.

Sri Lanka explores the possibility of using the Indian Rupee for trade with India

BUSINESS

Radi

March 31, 2023

Sri Lanka explores the possibility of using the Indian Rupee for trade with India

By: Staff Writer

Colombo (LNW): Sri Lanka is exploring the possibility of enhancing trade with India using the Indian Rupee. This was transpired ata meeting between the Governor of the Reserve Bank of India (RBI) Shri Shaktikanta Das and the High Commissioner of Sri Lanka to India Milinda Moragoda recently.

Continuing his engagement with key officials of the Indian Government, the High Commissioner of Sri Lanka to India Milinda Moragoda met with the Governor of the Reserve Bank of India at the Bank’s Headquarters in Mumbai y.

The Sri Lankan High Commissioner is on an official visit to the State of Maharashtra.The meeting between the RBI Governor and the High Commissioner of Sri Lanka was held in a very cordial manner, and a range of issues pertaining to the bilateral economic cooperation was discussed, the Sri Lanka High Commission in India said.

High Commissioner Moragoda expressed his gratitude to Governor Das for the support that India has been extending to Sri Lanka in the context of economic stabilization, particularly the currency swap arrangements and deferment of payments that materialized with the direct involvement of the Reserve Bank of India.

He also paid a tribute to India for the leadership it took towards the realization of the International Monetary Fund’s Extended Fund Facility (EFF) for Sri Lanka.

The RBI Governor and the High Commissioner discussed economic recovery in Sri Lanka, and the pivotal role that India could play in it through greater integration of the economies in areas such as power, energy, ports, infrastructure, tourism, IT services, etc.

The ways and means to enhance bilateral trade, particularly through Indian Rupee trade expansion, as a key pillar of economic revival in Sri Lanka, were discussed as well.

High Commissioner Moragoda presented a copy of his policy roadmap the” Integrated Country Strategy for Sri Lanka Diplomatic Missions in India 2021/2023″ to Governor Das. The High Commissioner was accompanied at the meeting by Sri Lanka’s Consul General in Mumbai Dr. Valsan Vethody.

A former Indian Administrative Service (IAS) officer, Shaktikanta Das has been serving as the 25th Governor of the Reserve Bank of India since December 2018.

He was earlier a member of the Fifteenth Finance Commission and India’s Sherpa to the G20. During his career as an IAS officer, Das served in various capacities for the Indian Government, including as Economic Affairs Secretary, Revenue Secretary and Fertilizers Secretary. He has also served as India’s Alternate Governor in the World Bank, ADB, NDB and AIIB.

A special gazette notice issued appointing a new Secretary to the Ministry of Public Administration

News

March 31, 2023

A special gazette notice issued appointing a new Secretary to the Ministry of Public Administration

A special gazette notice has been issued appointing K.D.N. Ranjith Asoka as the Secretary of the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government.

The gazette announcement states that the appointment is effective from March 21.

The former secretary of that ministry, Neil Bandara Hapuhinna, was suddenly transferred to the President’s Secretariat.

The decision on IGP’s service extension referred to the Constitutional Council for approval

News

March 31, 2023

The decision on IGP’s service extension referred to the Constitutional Council for approval

It is reported that the decision to give a three-month service extension to Inspector General of Police CD Wickramaratne has been referred to the Constitutional Council for approval.

President Ranil Wickramasinghe has forwarded this decision to the Constitutional Council.

It is said that the Constitutional Council is scheduled to meet tomorrow (01) and will consider this matter.

Sri Lanka to sign China FTA this year under pressure of debt restructure

BUSINESS

Radi

March 31, 2023

Sri Lanka to sign China FTA this year under pressure of debt restructure

By: Staff Writer

Colombo (LNW): China is pushing Sri Lanka towards the signing of China-Sri Lanka Free Trade Agreement (FTA) signed this year 2023 while there are many issues to be resolved in the agreement, Sri Lankan Ambassador to China Dr. Palitha Kohana claimed.

Sri Lanka is under pressure to sign the FTA following the assurance given by the Chinese Exim Bank for the restructure of the country’s debt for the unlocking of US$ 2.9 billion IMF bail out loan recently.

He noted that Sri Lanka is ensuring that certain safeguards are incorporated into the FTA to protect various local sectors as China is the second largest economy in the world.

He further noted that President Ranil Wickremesinghe has clearly stated his intent to have this FTA concluded in 2023.

Sri Lanka’s ongoing debt crisis has caught the attention of major global players, including China, which has been keenly interested in helping the island nation restructure its debt.

Since the end of the Sri Lankan civil war in 2009, China has extended numerous loans to the country for various infrastructure projects, including a port, an airport, highways, and other significant projects.

Sri Lanka owed Chinese lenders $7.4 billion – nearly a fifth of its public external debt – by the end of last year, calculations by the China Africa Research Initiative (CARI) shows.

However, concerns have been raised about the nature of China’s financial assistance and the motivations behind its debt restructuring efforts several economic experts disclosed arguing that China’s aid is part of a broader strategy to extend its economic and political influence in the region.

Their aim was to place Sri Lanka serving as a key location for China’s ambitious Belt and Road Initiative (BRI).

The Sino-SL FTA is set to open up new markets for Chinese businesses while providing Sri Lankan businesses with access to China’s vast consumer market.

However, an eminent expert argues that the deal would be heavily favourable for China allowing it to export Chinese goods into Sri Lanka affecting the country’s domestic industries.

He noted that China’s efforts to push for the FTA may be part of a broader strategy to gain greater influence over Sri Lanka.

Sri Lanka’s growing economic dependence on China may lead the country towards falling into a debt trap that could threaten its economic sovereignty, he claimed.

To address these concerns, Sri Lanka has been seeking to diversify its economic ties, exploring new opportunities for economic partnerships with other countries in the region while seeking to renegotiate its debt agreements with China, with some suggesting that the country reduce its dependence on Chinese loans.

One of the potential disadvantages of signing the FTA with China is the risk of job losses as the Sri Lanka’s labour-intensive industries, such as textiles and apparel, could face increased competition from cheaper Chinese imports, leading to potential job losses in these sectors.

Another disadvantage of signing an FTA with China is the risk lowered regulatory standards. As part of the FTA negotiations, Sri Lanka could be required to harmonize its regulatory regime with China.

Signing an FTA with China could lead to a loss of policy autonomy for Sri Lanka as it could be required to abide by certain rules and regulations set forth in the FTA, potentially limiting its ability to pursue certain policies in areas such as trade, labor standards, and the environment.