In a reassuring development for currency markets, the Sri Lankan Rupee has maintained its stability against the US Dollar at various commercial banks in Sri Lanka today, August 11th, as compared to the previous day.

At Peoples Bank, the exchange rates for the US Dollar remain consistent, with buying and selling rates holding steady at Rs. 311.42 and Rs. 326.74, respectively.

Commercial Bank reports a similar trend, with the buying rate for the US Dollar remaining unchanged at Rs. 309.78. The selling rate also remains steady at Rs. 325.

However, at Sampath Bank, slight fluctuations are noted. The buying rate for the US Dollar has increased from Rs. 314 to Rs. 315, while the selling rate has risen from Rs. 326 to Rs. 327.

These steady or marginally adjusted exchange rates suggest a degree of stability in the currency markets, providing a sense of confidence to traders and investors alike.

Dr. Lionel Bopage

Neo-liberalism

Neo-liberalism is not a solution, but the principal cause of the problem. I would like to offer some personal insights here from my working life with regard to the manner a non performing entity can be made more efficient and responsive, without resorting to the sort of tactics the neo-liberals are obsessed with. Neo-liberal tactics of austerity make the working people more oppressed at the expense of tackling key structural issues the country is faced with, which are at their heart political and economic. One of the best early examples in this regard was the top down approach used in 1970, after the dictatorial coup in Chile, which rammed home an austerity program without the consent of the people and the disastrous consequences its citizenry had to endure as a result.

This article describes the ideological frameworks underpinning the IMF’s approach to a country’s debt crisis. Its economic statements about fiscal responsibility and debt repayment pay little attention to the socio-economic and political causes that this debt crisis allows to emerge from time to time in a country like Sri Lanka or Ghana.

Neo-liberalism is not the solution!

When neo-liberal economy was introduced in 1977, successive leaders of Lanka told people that their future was going to be free, successful and marvelous. However, the future that materialized did not accord with what they predicted. Instead, we have a society where social and economic inequality and bad governance prevail and people’s freedoms are being taken away. This is the same situation in other countries where neo-liberal economics have been imposed on.

Neoliberalism focuses on economic regulation rather than economic planning. It promotes competition and protects market orientation against any controls. Neo-liberals encourage people to embrace entrepreneurship with the belief that at the micro level it creates wealth for the individual and at the macro level they need to accept socioeconomic inequalities deriving from such behaviors.

Instead of human rights, rule of law, civil liberties, freedom from prejudice and prosperity, what we have is a system that promotes authoritarianism, which gradually erodes our rights and freedoms over the years and justified in the name of a strident mono-cultural nationalism. The language and logic we hear are about democracies, but in reality, what we have are economic dictatorships; under the rhetorical guise of growth and productivity. Meanwhile the economic fruits have increasingly flown into the hands of the top echelons of society.

Skewed economy a trap

If this untenable and unfair economic system is not modified, the economic and political elite will continue to pay less tax for the riches they have acquired from the productivity gains made through labour and other inputs. The political elite who benefits from this inequitable system have no desire to make them pay their fair share of tax; instead, the regime offers them tax cuts on the erroneous premise that it is good for generating more employment opportunities and humane working conditions.

Instead, people are trapped in working long hours just to put food on the table for themselves and their families. They do not have much time for socializing or relaxation, having forced many of them to endure poor working conditions with no security. So, they do not have the luxury to quit the job looking for alternatives.

The prevailing system and its supporters have blunted our ability to choose what our prosperity will look like, or how to live our lives. We have lost the right to pursue our freedoms in our own ways without depriving or impeding the freedom of others. Enjoying that right is restricted to those who can afford to purchase that freedom to love, leave, leisure, and creation. This is not only unfair but is also irrational.

Running a business and governing a country

Governing a country is not like running a business entity or managing a home, though there are situations where similar strategies can be used. Financially insolvent situations can be considered as one. Let me start with my own business experience so as to reinforce the point of a collaborative approach to addressing the crisis. In 1987 I took over several business units of the largest non-governmental organisation in Sri Lanka, that were running at a loss, with the responsibility of transforming those into viable, profitable units. I was able to show results within a year, but also expanded those units and the workforce, and paid them better wages. This transformation was achieved during an extremely tough socio-economic and political environment in Sri Lanka.

This was not a unique situation as many face similar daunting tasks of turning around failing business entities under the influence of many factors both internal and external, such as project or market failure, diminishing sales and market share, shrinking profit margins, lack of timely and correct information, a disheartened workforce, lack of financial control, and inept management. I believe that most of the time, such business failures are self-perpetrated.

Dealing with an insolvent situation

If a business is not solvent, its senior personnel in collaboration with their staff need to come up with a plan on how to improve their economic survival. The best way to do this, would be to openly discuss what has gone wrong so far and what everyone, including the leaders could suggest making the economic prospects better.

Leadership needs to seriously consider and analyse the existing circumstances, decide on certain lines of action that are fair by the owners, managers, and employees, both consultatively and inclusively. They may seek advice of professionals with demonstrated business experience. Then those decisions need to be implemented proactively with contingency plans in hand in case of failure.

This is tough, though not an impossible task. Otherwise, the alternative is to resort to immoral and illegal ways through political patronage, corruption and black money etc. By doing the right thing, many businesses bounce back, even performing better and stronger. For the success is dependent on the leadership of the organisation; whether they take advice on board, evaluate the advice, and make tough but necessary decisions. Thus, they successfully implement the turnaround plan, without creating bitter and hostile environments.

Addressing an insolvency

According to my experience, businesses can continue to focus on producing and selling what they have been selling well already. At the same time, they need to develop new products/services to compete and survive in the market place. Here the focus should be on what customers need and if what the entity provides can satisfy their needs.

To regain trust, existing products/services may need to be improved, or new products/services, less expensive and of better quality can be provided in the market place. Branding may also need to change and new marketing strategies followed. Pricing needs to be competitive, but needs to generate reasonable profits to ensure the financial viability of the entity.

Additionally, human resources need be allocated to appropriate positions, so that skills of each employee and their contributions are better utilised. The business should have an adequate cash-flow to settle its bills in a timely manner, including the payments on monies borrowed. The business must manage its finances well. Also, the business should be accountable and transparent, and its transactions should be traceable. Bad financial reporting practices can lead to bankruptcy and closure of the business. Such practices should be stopped immediately. Hence, maintaining better financial reporting becomes crucial.

The next part of this article will point out that the economic panacea in the form of austerity is not only unfair but also has a detrimental effect on the unity of state as it does not address the underlying structural causes of the crisis.

To be continued

Link to part 1 : https://lankanewsweb.net/archives/39435/debt-restructuring-austerity-and-the-imf-a-panacea-or-an-exacerbation-part-1/

In a significant breakthrough, the Police Central Anti-Corruption Task Force located in Walana, Panadura, has identified a suspect involved in a sprawling vehicle fraud scheme. The suspect, who was employed in the record room of the Motor Traffic Department (MTD), is alleged to have amassed illegal profits in the millions of rupees by manipulating vehicle data within the department’s computer system.

The investigation revealed a sophisticated operation, with approximately 250 phone calls exchanged between the main suspect and an officer within the Motor Traffic Department. The suspect’s web of deceit extended to even the registration of a high-value jeep worth around Rs. 20 million, which was found to be fraudulently registered. Police have seized the vehicle as evidence.

The apprehended individual is believed to be the mastermind behind an organized criminal gang engaged in a large-scale racket involving document forgery for assembled vehicles. Authorities suspect that as many as 400 assembled vehicles may have been illicitly registered within the Motor Traffic Department.

A search of the suspect’s residence resulted in the discovery of a trove of incriminating evidence, including letterheads, rubber stamps, forged documents related to the Motor Traffic Department, counterfeit registration certificates from both public and private institutions, revenue licenses, falsified documents certifying the sale of condemned vehicles, and a plethora of other fraudulent materials. Notably, various blank forms and forged rubber seals from insurance companies and motor vehicle inspectors were also seized.

This recent revelation has prompted police to widen their investigation to determine whether additional personnel within the Motor Traffic Department are implicated in this far-reaching scheme. The Central Anti-Corruption Task Force in Walana, Panadura, remains at the helm of the ongoing investigation, determined to uncover the extent of this complex vehicle fraud operation.

Sri Lanka Railways has announced a temporary suspension of train operations along the Kandy-Matale railway line from August 18th to August 21st. The suspension is attributed to essential maintenance work that will be conducted on the railway track between Kandy and Katugastota.

During this period, train services connecting Matale and Kandy will be halted from midnight on August 18th until 4:00 a.m. on August 21st. This maintenance initiative aims to ensure the continued safety and efficiency of the railway infrastructure, contributing to the overall reliability of train services in the region.

1. SJB leader Sajith Premadasa asks for whose benefit the Govt was trying to implement the 13th Amendment: also says the Opposition is ready to consider the proposals made by the President re. the implementation of the 13th Amendment and extend its support only after a through scrutiny of the merits of those suggestions.
2. Committee on Public Finance says the Govt is to raise the gross borrowing limit and the expenditure limit for 2023 by Rs.9,000 bn to “facilitate the technical and accounting processes under the Domestic Debt Optimisation under the EFF of the IMF”: analysts puzzled as to why the debt ceiling is increased if the aim of the Debt Re-structuring exercise is to reduce the overall debt.
3. Fort Magistrate and Maligakanda Magistrate issue separate orders preventing IUSF activists from entering or marching in protest inconveniencing public or pedestrians at the Presidential Secretariat, President’s House, PM’s office, Galle Face area, Deans Road, Kularatna Mw, T B Jayah Mw, Technical Junction, etc: Police use water cannons to disperse protestors at Kirulapone, Viharamahadevi Park and Town Hall, and arrest 22 protestors.
4. Nine Iranian sailors imprisoned in SL released following consultations between the Iranian FM Hossein Amir-Abdollahian and SL FM Ali Sabry in Tehran.
5. Deputy Speaker says the Supreme Court has determined that certain clauses of the Ayurveda Amendment Bill are inconsistent with the Constitution & the Bill should be passed with a special majority & a referendum.
6. Sports Minister Roshan Ranasinghe suspends the registration of Sri Lanka Automobile Association: 7-member committee appointed to overlook its functions.
7. Ceylon Beverage Can Ltd, promoted by Cricket legend Muttiah Muralitharan to set up a full-fledged “aluminium cans and beverages filling plant” in Karnataka, India: the company had requested 26 acres of land with an investment of Rs.440 crore, and is expected to generate 500 jobs.
8. SJB leader Sajith Premadasa says the poor & elderly helplessly fall to their death in queues to get their membership of the “Aswesuma” welfare scheme that had gone awry, because the Govt has overlooked obtaining the services of the 5 main public sector officials in each Grama Niladhari Division.
9. As per Minister Nimal Siripala de Silva, the total damages caused to Galle Face, Colombo by the “Aragalaya” protests last year have been estimated at Rs.5.9 mn.
10. Ayomal Akalanka wins the Silver medal in the 400 metres Hurdles & Nilupul Pehesara wins the Bronze medal in the Men’s High Jump with a performance of 2.00 metres, at the Commonwealth Youth Games, Trinbago 2023.

Speaking at the 36th Annual Conference of the Organization of Professional Associations (OPA) in Colombo’s Kingsbury Hotel, President Ranil Wickremesinghe emphasized the critical importance of capital, both financial and human, as the driving force behind economic growth. He underscored the historical challenges faced by Sri Lanka in capital formation and stressed the need for reorganizing and restructuring the financial system to revitalize the nation’s economic prospects.

President Wickremesinghe acknowledged that Sri Lanka had accumulated capital up to 2019, but subsequent events such as the COVID-19 pandemic and economic downturn had eroded its financial strength. He drew parallels with other nations that had experienced significant growth due to capital influx and urged the country to focus on similar strategies.

Addressing the attendees, President Wickremesinghe commended the collective efforts of the nation in overcoming challenging circumstances, comparing the present to the previous year and expressing optimism for the future. He highlighted the importance of constructive solutions over political distractions and cautioned against the negative impact of agitation without viable remedies. He emphasized the need for consistent leadership to address pressing issues and praised those who stepped up to contribute to the country’s stability.

Turning to economic challenges, the President discussed the need for domestic debt optimization and the potential risks of failure. He warned of the severe consequences such failure could have on the banking sector and the economy as a whole.

President Wickremesinghe also addressed the issue of human capital, emphasizing the significance of education and training. He expressed concern over the departure of skilled professionals from the country and stressed the urgent need for vocational training centers and universities to bridge the skills gap and meet the demands of a competitive economy. He outlined plans to collaborate with the private sector to establish a robust framework for education and training.

Highlighting the importance of attracting foreign investment, President Wickremesinghe emphasized the need for a competitive economy. He underscored the role of foreign investments and the Colombo financial zone in securing necessary funds. He called for streamlined investment procedures and a more appealing investment environment to compete with neighboring countries.

The President also discussed proposed legislative changes, including devolution of powers to Provincial Councils and streamlined procedures for new universities. He highlighted plans to establish institutions to cater to evolving demands and stressed the importance of human resource development, especially in universities.

In conclusion, President Wickremesinghe emphasized the strategic management of financial and human capital as the key to Sri Lanka’s future success, highlighting their pivotal role in fostering a thriving and competitive economy for the nation’s development.

Six years ago “Dr Phil”, America’s fatherly tv therapist, asked Sinéad O’Connor to show him a picture of the life she hoped for in future. She held out a sketch of a spiky-haired woman in trousers and a stars-and-stripes top, singing into a microphone. He asked her to sign it, and she did: Magda Davitt. To his nonplussed look, she explained hastily that Sinéad O’Connor had gone. She didn’t want to be that person any more.

Sinéad frequently went missing. In her place came Scamp, herself as a child, because she was a rascal and tiny and a terrible thief. Then Mother Bernadette Mary, priest of the Irish Orthodox Catholic church, with a big wooden cross swinging round her neck. And Magda, who didn’t last very long. Then, when she converted to Islam in 2018, Shuhada’ Sadaqat. She put that name on documents alongside her original. As Shuhada’ she wore a hijab both when performing and when she was sitting in her cottage up an Irish mountain, on her crimson sofa, chain-smoking Mayfair cigarettes. She had always been a multi-piece jigsaw. Once she got the time, for she never seemed to have it, she needed to lay the pieces out on the floor and see if she could make any sense of them.

To begin, she was resigned to girlhood, but wanted to look like a boy. When her first album, “The Lion and the Cobra” came out in 1987, a squarer-than-square exec told her she should wear short skirts with boots, necklaces and bracelets, and grow her hair long. Immediately she went to a barbershop and had it all shaved off. The barber cried, but she looked in the mirror and saw, without her hair, herself. Ever after she was either close-cropped, or completely shaved. With this went the leather jackets and the Doc Marten boots, the toe-caps slashed to show the steel underneath. For a time she came out as a lesbian, then retracted. She loved men and sex with men, married four of them and had children with three. She doted on them. Motherhood exalted her.

As a performer she played several parts. One was a punk. The cover of “The Lion and the Cobra” showed her with arms raised, grimacing. But she was only singing. The anger in her—especially in “Troy” where she promised to return, Phoenix from the flame, “being what I am”—rang through the beautiful voice. But she was only a mild sort of punk, really. The next album, “I Do Not Want What I Haven’t Got”, was calmer. Her music bosses preferred her to look demure and sad, and she could do that too; no one could wring more pathos out of the old Irish songs, “Danny Boy” or “Foggy Dew”. And yet, another paradox, she felt almost nothing for Ireland. The whole place was a church in which people, women especially, did not dare raise their voices. The best day of her life was in 1983 when she left. Divorce and homosexuality were still illegal then. The unmarked graves of the Magdalen mothers had still to be uncovered. As a bad-lot teenager, she had spent time in such a place herself. She knew girls who had become suicidal when their babies were taken away. But one of the nuns bought her a guitar, which became her life.

She found world fame in London. It rested essentially on one song, her cover in 1990 of Prince’s “Nothing Compares 2U”, which she sang on video with a face as pale as death. The song topped almost every chart, and she was a star. But she never wanted to be. Pop stars had to be good girls. She was a handful, a troublemaker. They lived in a sort of prison; she needed to be free. She was just a troubled soul who needed to scream into mikes now and then. Her models were Bob Dylan and Bob Marley, protest singers who made people hear the truths that no one talked about. They didn’t want glitter and money and awards. Nor did she.

Fame, however, could be sabotaged. She began by refusing in 1991 to accept four Grammy nominations. This was a protest against many things: child abuse, sexism in the music industry and American jingoism, for playing the national anthem before her concerts. The next year, at the end of performing Bob Marley’s “War” on “Saturday Night Live”, she held up a picture of the pope on the word “evil”, and tore it into pieces. “Fight the real enemy!” she shouted. Meaning paedophile priests, and the church’s silence. At once she was labelled a crazy bitch. nbc banned her for life, and her career in America ended. But it was a brilliant stroke. Having a Number 1 had derailed her, and now she had reset her career. It became no easier, but it was on her own terms.

Abuse was something she knew plenty about. Her mother, an alcoholic, hadn’t wanted a daughter. So she had made her lie on the floor, arms and legs apart, and stamped on her to try to burst her womb. She made her say “I am nothing, I am nothing”, over and over. Sinéad’s job was to clean the house. If so much as a lampshade was crooked, the shit was beaten out of her, usually with a hockey stick. She recorded the tortures in her songs; they were her only therapy. And yet, in another paradox, she loved her mother, whose very smell was evil. She missed her, and ached to hug her. It was not unlike the way she both treasured aspects of Catholicism, and hated the church. As a child she had worried that the Holy Ghost, a bird of light, was kept cooped up in a tabernacle by priests who took no joy in their religion. It ought to be out flying.

Amid all these bits of herself, the consistent thread was song. That too went missing from time to time, especially after 2015, when a radical hysterectomy made her lose her mind. Typically she publicised her breakdown, in a desperate video from a Travelodge in New Jersey. After six years of various treatments she re-emerged, only to be knocked down by the suicide of her son Shane, the lamp of her soul, in 2022.

Song might have rescued her even then, as it did when she was a teenager. She had plans for recordings and tours. Music was her deep inner place; she never made sense to anyone, even to herself, unless she was singing. As a bad child, she sang to get into heaven. When music played then, she saw an entity, not human, dark-blue and green and made of space, that took her hands to dance. And she heard it speak: “Some call me music, some the great absolver…If you don’t know who to be, you can be me.” ■

This article appeared in the Obituary section of the print edition under the headline “The place where she was”

THE ECONOMIST

In a significant diplomatic move, Minister of Public Security Tiran Alles held a meeting on Thursday, August 10th, with representatives from the Tamil National Alliance (TNA). The focal point of their discussion was the 13th Amendment of the Constitution, with a particular emphasis on matters concerning police powers and the proposed devolution of authority.

During the meeting, the TNA Members of Parliament highlighted successful instances of power devolution in countries such as India and England. Drawing parallels, they urged for similar steps to be taken in Sri Lanka to empower regional governance. In response, Minister Alles acknowledged the achievements of power devolution in recent times in England. However, he emphasized the substantial disparities in social and political contexts between England and Sri Lanka.

In a related discourse, the TNA representatives expressed their concerns over the rising incidence of crimes and drug-related offenses in the Northern Province. In addressing these concerns, Minister Alles urged the TNA to collaborate by submitting any pertinent information to the special police committee assigned to investigate these issues.

The Secretary of the Ministry of Public Security, Viani Gunathilaka, CDCD Wickramaratne, Senior Deputy Inspector General of Basnahira Province, Deshbandhu Tennakoon, and other senior police officials, representing the Tamil National Alliance, MA Sumanthiran, Shanakkayan Rasamanikam, Dharmalingam Siddharthan, Charles Nirmalanathan and Mr. Selvam Adekkalanathan participated on this meeting.

Both sides have agreed to hold the next discussion in a fortnight as requested by the members of the Tamil National Alliance.