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‘Aragalaya’ activist and YouTuber Konara joins Alles’ Party UPP

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A group of activists from the ‘Aragalaya’ people’s protests has decided to contest the upcoming Local Government Election from the United People’s Party (UPP), secretaried by Public Security Minister Tiran Alles.

The Party will contest the Election under the ‘Mobile Phone’ symbol.

After changing the leader through the protests of the Aragalaya, further aggression will not be necessary, for everyone should be working towards economic stability of the country now, Avishka Viraj Konara aka ‘Konara’, YouTuber and Social Activist, calling in a briefing said.

He noted that he chose the UPP to enter politics because the Party has given an opportunity to work freely through his own programme to develop the digital economy of Sri Lanka.

The activist also revealed that he will be contesting for the Colombo Municipal Council under the UPP, whilst briefing the media projects he has already implemented to develop the country’s digital economy.

MIAP

Previous report:

Cabinet agrees to settle public servants’ salaries on two separate days

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The move taken by the General Treasury to settle the salaries of the non-executive public servants on the designated date and the salaries of the executive public servants several days after the designated date has been approved by the Cabinet.

The move, which was made in compliance with the limits of the government’s cash flow in order to manage the expenses for the next few months from January, was approved during the Cabinet meeting held yesterday (16) and was revealed during today’s (17) briefing called in for announcing the Cabinet decisions.

MIAP

Navy seizes 10 people, 02 fishing trawlers suspected to have smuggled narcotics

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Sri Lanka Navy apprehended 10 suspects with 02 local fishing trawlers which were suspected to have smuggled narcotics into the island. The suspects and the fishing trawlers were escorted to the Port of Colombo yesterday (16).

The apprehension was made based on information revealed by the suspects of a local fishing trawler which was held during a special operation carried out by the Navy in waters west of Beruwala on 05th January. The same operation also led to the seizure of 23kg and 235g (including packages) of heroin smuggled by those suspects.

In order to curb illegal activities, including the smuggling of drugs via sea routes, Sri Lanka Navy conducts regular patrols and operations in the coastal and beach areas of the island. According to a coordinated operation carried out by the Navy together with other intelligence services, it has been revealed that a number of local multi-day fishing trawlers are involved in the smuggling of drugs into Sri Lanka.

During the apprehension made by SLNS Wickrama II on 05th January off Beruwala, 22 packages of heroin weighing 23kg and 235g (including packages) were recovered from the suspicious trawler (Reg. No. IMUL–A–1610–MTR Kingfisher – 6). Along with the consignment of narcotics, 05 suspects and the drug-carrying trawler were also taken into custody.

Based on information revealed by the suspects apprehended in that operation, two (02) more local multi-day fishing trawlers (Reg. No. IMUL–A–1888–MTR Kingfisher – 8 and IMUL–A–2029–MTR Kingfisher – 3) suspected of smuggling drugs to Sri Lanka were intercepted off the western coast by SLNS Gajabahu on 07th and 08th January.

During interrogation, the suspects aboard those trawlers admitted that they had thrown the stocks of narcotics overboard with the presence of the Navy. The interrogation also revealed that drug traffickers have developed a new strategy in which they remove inside components of the multi-day fishing trawlers’ Radar Domes and conceal drugs within.

The 02 fishing trawlers brought ashore are currently being inspected. Meanwhile, the fishing trawlers and 10 suspects will be handed over to the Police Narcotic Bureau for onward legal proceedings.

Going by the directives of the President and guidance of the Secretary of Defence, General Kamal Gunaratne (Retd) a range of anti-drug operations are being conducted across the island in order to eradicate the menace of drugs from the country. In this regard, Sri Lanka Navy in coordination with law enforcement agencies, too plays a pivotal role under the able leadership of Commander of the Navy, Vice Admiral Priyantha Perera, continuing operations to apprehend smugglers engage in such illegal acts in the guise of fishing.

SL Navy

New insurance scheme for SL house maids leaving for Middle East

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The Foreign Employment Bureau of Sri Lanka will be introducing a new insurance policy for the protection of women leaving to the Middle East region for domestic work, a senior official of the ministry said.

Accordingly, the employer who hires the relevant female migrant worker must have obtained this insurance, and the insurance certificate must be submitted to the Foreign Employment Bureau to register the female migrant worker for foreign employment.

Women domestic workers leaving for Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and the United Arab Emirates can choose a suitable insurance policy from among the approved insurance schemes.

The employer must pay an amount of 110 to 140 US dollars for this new insurance for women going to work for a period of 2 years of service in those countries. The amount of insurance premium to be paid will increase in proportional to the duration of the employment contract.

If the employee dies or becomes permanently disabled due to accidents during the employment contract period, an amount of USD 15,000 will be paid as insurance compensation. In case of partial disability due to accidents, an amount of USD 10,000 is entitled as insurance compensation.

In addition to this, insurance compensation is also available for receiving medical treatment, surgery, and epidemic diseases such as Covid, and if a woman is sheltered in a safe house, she will be compensated with US $10 per day for the necessary expenses incurred during that period.

Meanwhile Sri Lanka’s cabinet of ministers has approved the reduction of the minimum age for females to depart to the Middle East as housemaids to 21 years from the current 23, Minister Bandula Gunewardena said.

“The cabinet approved the proposal by Foreign Employment Minister Manuusha Nanayakkara to encourage foreign remittances in the current currency crisis,” Minister Gunewarndene disclosed.

At the moment the age limit for Middle East employment for housemaids and other work was 23 year and for other countries 21 years.

A cabinet sub-committee was appointed on June 06 2022 to go into the matter under the Justice Minister.

Showers about 75mm to continue at several places: Met Dept

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Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Southern, Central, Uva and North-Western provinces during the afternoon or night and fairly heavy showers about 75mm can be expected at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts, the Department of Meteorology said in a statement today (17).

Several spells of light showers may occur in the Eastern Province.

A few showers may occur in the Southern Province in the morning too.

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Several spells of light showers will occur in the sea areas off the coast extending from Trincomalee to Pottuvil via Batticaloa. Showers or thundershowers may occur in the other sea area during the afternoon or night.
Winds:
Winds will be north-easterly and wind speed will be (20-30) kmph. Wind speed may increase up to (40-45) kmph at times over the sea areas off the coast extending from Trincomalee to Colombo via Kankasanthurai, Mannar and Puttalam and the sea areas off the coast extending from Hambanthota to Pottuvil.
State of Sea:
Sea areas off the coast extending from Trincomalee to Colombo via Kankasanthurai, Mannar and Puttalam and the sea areas off the coast extending from Hambanthota to Pottuvil will be fairly rough at times. The other sea areas around the island may be slight to moderate.

MIAP

INS ‘Delhi’ arrives at Trincomalee Port

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The Indian Naval Ship (INS) ‘Delhi’ arrived at the Port of Trincomalee on a formal visit on January 15.

The visiting ship was welcomed by the Sri Lanka Navy in compliance with naval traditions.

INS ‘Delhi’ is a 163.2m long Destroyer manned by a crew of 390 and the ship is commanded by Captain Shiraz Husain Azad.

In the meantime, the Commanding Officer of INS is scheduled to call on Commander Eastern Naval Area and Commandant Volunteer Naval Force, Rear Admiral Dammika Kumara on 16th January at the Eastern Naval Command Headquarters.

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 go on a sightseeing excursion in Trincomalee.

On the other hand, Sri Lanka Navy personnel will engage in a training visit onboard INS ‘Delhi’. Concluding the visit, INS ‘Delhi’ will depart the island on 17th January.

SL Navy

India and SL to ink MOUs on power grid link and Trinco development

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India and Sri Lanka are expected to sign MOUs on the Trincomalee development project and much delayed power grid link and Indian assistance for energy and food security as well as currency swap arrangements, during the visit of External Affairs Minister, S. Jaishankar’s visit to Colombo on Thursday 19.

During his stay in the island for two days he will focus on “supporting Sri Lanka” in its current economic crisis, and restructuring Sri Lanka’s debt.

“India is expected to give a positive response to Sri Lanka’s requirements, in keeping with India’s support last year as well,” said a foreign ministry source, citing India’s combined package of about US $4 billion including loans, credit lines for the purchase of essentials and a loan deferment through the Asian Clearing Union.

In addition, talks are expected on two possible MoUs— on the Trincomalee development project and the long-pending plan for a cross-strait transmission line that would allow Sri Lanka access to India’s plans for an energy grid along with other countries like Nepal, Bhutan and Bangladesh.

The sources stressed that while assisting Sri Lanka with its current economic difficulties is a priority, Mr. Jaishankar’s visit, his first with the six-month-old government in Colombo, would see a comprehensive review of bilateral ties.

Meanwhile, diplomatic sources said that the support, in the form of “written financial assurances” from India would be critical for Sri Lanka as it works with its other creditors to resolve the economic crisis.

Announcing the visit by EAM Jaishankar, President Ranil Wickremesinghe said that he had discussed the need for the debt restructuring programme with all Sri Lanka’s creditors, including the 22-nation ‘Paris Club’ of 22 developed nations that hold much of the global debt and discuss solutions to debt crisis together.

He said that Sri Lanka’s “only” option was to seek the support of the International Monetary Fund (IMF) for a nearly three billion dollar bailout, and was also hopeful of a package from the Asian Development Bank (ADB).

He also disclosed the visit by Japanese State Minister of the Cabinet Office Satoshi Fujimaru and the ongoing visit of Chen Zhou, Vice Minister of the International Department, the Communist Party of China Central Committee.

After Mr. Chen’s meeting with President Wickremesinghe, the Chinese Embassy in Sri Lanka said the talks were “friendly and fruitful”, and quoted Mr. Wickremesinghe as saying that he “looked forward to China’s support in restructuring Sri Lanka’s debt at the moment and our economy in the near future”.

SLFP makes several decisions on upcoming Local Government Polls

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The Sri Lanka Freedom Party (SLFP) has reportedly made some conclusions on the manner in which they will contest the upcoming Local Government Election.

Accordingly, the SLFP will be contesting for the districts in North and East Provinces and the Polonnaruwa District under the ‘Palm’ symbol representing itself, whilst joining the Alliance under the ‘Helicopter’ symbol to contest for Colombo, Puttalam, Kurunegala, Monaragala and Hambantota Districts.

In addition, discussions are underway to contest from both the ‘Palm’ and the ‘Helicopter’ for the rest of the districts, sources said.

MIAP

Proposal to dispense 10kg of rice to 02 million low-income families approved

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The Cabinet paper presented by President Ranil Wickremesinghe for the provision of 10 kg of rice per month for two million low income families, including Samurdhi beneficiaries for a period of two months, has been approved.

Accordingly, the government will purchase 61,600 metric tons of paddy to meet the requirement of 40,000 Metric Tons. This program is proposed to be implemented by District Secretaries and Divisional Secretaries with the assistance of small and medium-scale paddy mills.

Under the District Secretaries and Divisional Secretaries, rice will be distributed among the identified Samurdhi beneficiaries including low-income earners using the existing system and the Ministry of Women, Child Affairs and Social Empowerment will coordinate the District Secretaries and issue necessary instructions to them.

The total estimated cost is Rs.8,040 million, which includes Rs.6,200 million for paddy purchase, Rs.290 million for rice drying, Rs.590 million for milling charges, Rs.200 million for packing costs, Rs.160 million as additional payment to mill owners, and Rs.600 million for transportation.

However, the program’s estimated cost will vary depending on market fluctuations, and a budget provision of around Rs.10,000 million will be allocated to be used if the need arises.

According to data from the Departments of Agriculture and Agrarian Development, the land extent used for paddy cultivation in the 2022/2023 Maha season is approximately 732,201 hectares, and the expected yield is 3.3 million metric tons, while approximately 2.2 million metric tons of rice can be produced. Given the country’s monthly rice requirement of approximately 210,000 metric tons, it has been observed that the next Maha season may see a paddy surplus. As a result, in order to protect both the paddy farmer and the consumer, the government must intervene in the purchase of a specific amount of paddy during the 2022/23 season.

Furthermore, due to the country’s extremely difficult economic situation, it is necessary to protect low-income groups of society from the negative effects of the crisis by assisting them in maintaining a good nutritional level. This group consists of approximately 2 million families, including Samurdhi beneficiaries. Although the government has provided additional funds for this group until April 2023, there is a need to care for these low-income earners for a further period. Because the paddy harvest in this season of 2022/2023 is expected to be higher than the previous Maha season, it is appropriate to use a portion of the paddy to provide additional support to identified low-income earners in order to maintain their standard of living. This program will benefit both farmers and low-income groups in the country.

The Treasury Secretary, officers of the Presidential Secretariat, the Secretary to the Ministry of Agriculture, the Secretary to the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government, the Secretary to the Ministry of Women, and Child Affairs and Social Empowerment, all District Secretaries, the Department of Samurdhi Development, and other related institutions will participate in the discussions on the method of implementing the proposed program. It is also expected to discuss and decide on the proposed rice distribution mechanism. In addition, the production cost of rice varieties to be purchased by farmers, a certified price for rice, paddy owner participation, transportation methods, and paddy milling charges will be discussed in depth.

PMD

CB’s move to limit banks’ access to standing facility windows backfires

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The Central Bank’s new move of restricting the licensed commercial banks from accessing the monetary authority’s standing facility windows which came into effect from this week is set to face obstacles due to foreign bank’s inability to abide by the directive, several GMs of banks said.

Although the Central Bank’s aim is to reactivate the interbank money market and thereby ease pressure on interest rates, foreign banks, which operate with excess liquidity, may not be willing to lend directly to domestic banks, given their strict counterparty limits, they claimed.

The Central Bank imposed certain limits on the access by the commercial banks of its standing facility window for overnight liquidity needs, effective from January 16.

But the expected downshift in short-term lending and deposit rates failed to materialize in the latter part of last year, compelling the Central Bank to intervene in the interbank market, banking and finance analysts said.

As a result, effective from this week, the commercial banks are only allowed to park their excess liquidity under the Standing Deposit Facility of the Central Bank only five times a month while the access to liquidity from the Standing Lending Facility is limited to 90 percent of a bank’s reserve requirement on a daily basis.

It was found that the banks operating with mostly excess liquidity are the local units of foreign commercial banks while the local banks operate with deficits.

Colombo-based stockbroker CT CLSA Securities recently estimated these local units of these foreign lenders have roughly Rs.200 billion worth of surplus funds.

CT CLSA Securities said any shortfall the local banks find in their overnight liquidity levels could be met by tapping into this Rs.200 billion by directly borrowing from these surplus units.

However, the analysts at Standard Chartered Bank (StanChart) last week said the local banks may be unable to do so, given the strict counterparty limits imposed on them as a result of sovereign-related risks.

“ foreign banks are parking their excess liquidity with the Central Bank, as stricter counterparty limits, due to sovereign-related risks, have made them reluctant to lend to liquidity-deficient domestic banks,” StanChart said in a recent Credit Alert, which analysed the risks faced by Sri Lanka’s financial sector.

“The increasing risk of domestic debt restructuring has reduced foreign investors’ appetite for sovereign debt (T-bills and T-bonds). This has increased the burden on domestic banks – especially the state-owned banks – to buy government paper, tightening their liquidity position,” it added.

The prospect of domestic debt restructuring has spooked the Sri Lankan banks, which sent their own representatives to the negotiation table to ensure that the parties won’t reach any agreement, which will put the sector into further peril.

Any form of debt restructuring, which will further weaken the local banking system, is not worth the effort or the cost, as that will not just make matters further difficult for the Sri Lankan economy but will prolong and undermine any prospect of recovery, according to local analysts.