H.E President Ranil Wickremesinghe participates in theVoice of Global South Summit
India hosted a two-day Voice of Global South Summit virtually on 12-13 January 2023. With 10 sessions in total, the Summit saw the participation of Leaders and Ministers from 125 countries of the Global South including Sri Lanka.
2. Under the theme “Unity of Voice, Unity of Purpose”, this one of a kind Summit focused on priorities, perspectives and concerns of the developing world. The Summit was particularly relevant as the world passes through a difficult period marked by challenges to health, food security, affordable access to energy, climate finance and technologies, and economic growth.
3. Prime Minister Narendra Modi presided over the Inaugural Leaders’ session on 12 January 2023. This was followed by eight Ministerial-level thematic segments dedicated to addressing the most pressing concerns of the developing world. The Summit wrapped up on 13 January 2023 with a Concluding Leaders’ Session also hosted by Prime Minister Narendra Modi.
4. H.E President Ranil Wickremesinghe attended the Concluding Leaders’ session. In his remarks, the President of Sri Lanka focused on economic issues of the developing world. He said that India was in the best position to act as a bridge between the developing countries which are facing a debt crisis and the G20.
5. Prime Minister Narendra Modi announced a number of new initiatives at the Concluding Leaders’ session such as:
· Aarogya Maitri
· Global South Centre of Excellence
· Global South Science and Technology Initiative
· Global South Young Diplomats Forum
· Global South Scholarships
6. State Minister of Finance Hon’ble Shehan Semasinghe attended the Finance Ministers’ session on 12 January 2023. In this session, Ministers exchanged views on financing the development needs of the Global South, achieving financial inclusion, implementation of digital public goods in the financial sector, and development partnerships that are outcome-oriented and financially sustainable.
7. Participating countries recognized with appreciation that the Summit produced fruitful conversations and charted a new path through an action oriented agenda that strives to address their priorities and challenges. They underscored the agenda and quest for solutions to global challenges must include the voices of its biggest stakeholders, the Global South.
*Below is an article published by General, Dr Boniface Perera on Daily Mirror on 21.05.2019 providing an in-depth scientific analysis as to who should be held accountable for the April 21 Easter Sunday carnage that took away more than 270 people. In his elaboration, Perera explains the grounds on which these parties should be held responsible as designated government officials at the time of the attack. LNW recirculates this feature in compliance with the recent Supreme Court ruling pertaining to the Fundamental Rights (FR) petitions filed over the Easter Sunday genocide, enabling our readers to bridge the events from a perspective of past-and-present comparison.
A series of bombings struck churches and hotels in Sri Lanka on Easter Sunday killing more than 250 people including 40 foreigners and wounding more than 500 others following the Easter Sunday suicide attacks that also devastated the livelihood of the entire nation. The attacks were the deadliest since the end of the civil war 10 years ago, and targeted three churches as well as four tourist hotels in Colombo.
These attacks were carried out by a little-known Islamic organization named National Thawheed Jama’ath (NTJ), which sent shock waves across all directions in the country.
WHO SHOULD BE HELD RESPONSIBLE?
At the outset, I would like to place a question before citizens of this country – who should be held responsible for the Easter Sunday attack for not taking prompt actions?
Majority of Sri Lankans believe that the President, the Prime Minister, the Secretary of Defence, the Commander of the Army and Inspector General of Police.
WHY THE PRESIDENT?
Because the President is the Commander in Chief of the Armed forces, head of the Security Council and Minister of Defence and also Minister of Law and Order.
The information of a possible bomb attack had been brought to the notice of the President many a time at the Security Council by Intelligence Chief and responsible Defence and Police Officers.
This will be further proved by the information provided by Indian authorities.
Indian intelligence managed to break into National Thawheed s communications and began tapping into the plot, according to Ajai Sahni, Executive Director of the Institute for Conflict Management in New Delhi.
“That is why the kind of detailing of the incident they received was very, very specific,” Sahni said.
“They knew the group, they knew the targets, they knew the time, they knew the whereabouts of the suicide bombers, and all of this was communicated to the Sri Lankan Government.”
Top Sri Lankan officials also have acknowledged that some of the island nation’s intelligence units were given advance notice about the attacks and that little was done to prevent them. Accordingly, although ample and accurate pieces of information were provided well in advance, the Commander in Chief failed to take either preemptive nor preventive actions causing a massive human disaster in the Sri Lanka history creating a lot of uncertainties, tension and panic among people and ruining the national security, national economy, national culture, national intelligence, which have a correlation with political leadership directly impacting national survival.
Furthermore, Jonah Blank a principal investigator and senior political scientist for the RAND Corporation said, “In this case, it does appear as if there was a political failure which led to a poor Government response. The warning from an external intelligence agency ( almost certainly India) was reported relayed to the office of President Sirisena. It seems as if these warning were not acted on sufficiently and were not relayed to Prime Minister Ranil Wickremesinghe. There are two reasons for this! First, the President doesn’t trust the Prime Minister (He tried to have him ousted in October 2018), and there is bad blood between them. Second, the President believes that India favoured the Prime Minister over him, so he may have discounted the intelligence on these grounds.”
Therefore, President Sirisena cannot wash his hands off from his responsibility for national security simply by sacking the Secretary of Defence and the Police Chief. As per Article 30(1) of the Constitution, “The President of the Republic-of Sri Lanka who is the Head of the State, Head of the Executive and of the Government and the Commander – in Chief of the Armed Forces.”
Accordingly, the SC judgement re-19th Amendment, national security is an inalienable part of people’s sovereignty reposed on the President in trust. As per the opinions of legal experts, inaction of commander in chief has amounted to violation of fundamental rights of victims and citizens.
Similarly in France, the credibility of King Louis XVI was deeply undermined and the abolition of the monarchy and the establishment of a republic became an ever increasing possibility. Louis XVI was the last king of France and the first part of his reign was marked by attempts to reform the French Government in accordance with enlightenment ideas like yahapalanaya.
The king failed to fulfil promises made including to provide basic need bread which was the staple food. It says when people asked for bread, the queen replied “Why? Don’t they have cake?” This amply demonstrated and knowledge he had on people and towards humanity. King’s indecisiveness and conservatism led by some elements of the people of France to view him as a symbol of the perceived tyranny in addition to being ineffective, inefficient and useless to the nation.
The king was arrested and tried by national convention, found guilty of high treason and executed by guillotine on January 21, 1793 as a desacralized French citizen.
WHY THE PRIME MINISTER?
After the 19th Amendment two sources of authorities were created. In terms of practicality the incumbent PM is the key responsible person behind most of the policy issues of the Government. As the PM, who is likely to have the command of Parliament and the leader of the political party who formed the board of ministers is under the effective control of the executive powers including the national security. Therefore, Prime Minister is also responsible for the human disaster for failing.
THE IGP AND THE DEFENCE SECRETARY
Both of them were asked to resign as they were held responsible and were pending inquiries. It is unfair and unrealistic to hold Navy and Air Force commanders responsible as extremists carried out a land attack and there was no violation of air and sea.
WHY THE ARMY COMMANDER?
The Army Commander is personally responsible for handling, directing, managing, controlling and commanding military intelligence.
Military intelligence includes information on other countries’ military forces, plans, and operations gained through a variety of collection methods. It helps civilian policymakers and military leaders understand political and military trends around the world, the sources of potential regional conflict, and emerging threats to the global and regional security environment, and provides recommendations on how best to employ information-gathering techniques and technologies. All these process fails when military intelligence is neglected.
The Sri Lanka Army is a classic example of negligence of military intelligence by the Army Chief.
It has reduced the military effectiveness and efficiency and put the military into a darker side allowing the enemy to capitalize on the weak security situation. The Easter Sunday attack on Sri Lankan Christian churches and tourist hotels killing more than 250 civilians including 40 foreigners proved the consequences of negligence of military intelligence where Army commander himself should be held responsible and he cannot blame police saying that police didn’t pass down the information. It is the prime responsibility of the Commander of the Army to find, analyze and take actions against a threat to national security, where he failed. Therefore, inexperienced Army commander who lacks required knowledge in national security same as dismissed the Secretary of Defence, should resign without further proving to the world his inability.
Similarly, India’s Naval Chief Adm. D.K. Joshi, resigned after a Russian-made Indian submarine caught fire off the coast of Mumbai, injuring seven officers and leaving two missing. After the accident, Adm. D. K. Joshi, the Chief of the Indian Naval Staff, submitted his resignation, “Taking moral responsibility for the accident.”
Likewise in USA, the Air Force’s General Ronald R. Fogleman, top officer retired citing “a variety of reasons” that included differences over responsibility for failing to defend against a terrorist attack that killed 19 U.S. servicemen last year in Saudi Arabia.
“I do not want the institution to suffer and I am afraid it will if I am seen as a divisive force and not a team player,” Gen. Ronald R. Fogleman, the Air Force chief of staff, said in a written statement. He becomes the first of 16 Air Force chiefs to step down voluntarily before completing his full term.
The chief of France’s armed forces resigned in a dispute with Emmanuel Macron over defence budget cuts. In a statement, 60 year-old Pierre de Villiers said he had tried to keep the armed forces fit for an ever more difficult task within the financial constraints imposed on it, but was no longer able to sustain that.
“In the current circumstances I see myself as no longer able to guarantee the robust defence force I believe is necessary to guarantee the protection of France and the French people, today and tomorrow, and to sustain the aims of our country,” he said.
Above examples amply demonstrate qualities of an officer and a gentleman of professional Armed Forces in the world, more than command responsibility.
One must understand that, one cannot demand respect, but that it should be commanded. This is the most important moment in Sri Lankan history. It was proved beyond doubt that the person who holds the office of Commander of the Sri Lanka Army lacks competency and experience to tackle Sri Lanka Army, which had an immense reputation in defeating the world’s most ruthless terrorist organization and therefore, he should not try to further stay in the seat for personal benefits at the mercy of politicians specially the President.
PRESIDENT’S PROMISE TO CHANGE HEADS OF DEFENCE FORCES
Sri Lankan President Maithripala Sirisena said he expected to change the heads of the country’s defence forces within a day following their failure to prevent the Easter Sunday bombings, despite the fact they had prior information about the attacks.
“I will completely restructure the Police and Security Forces in the coming weeks. I expect to change the heads of defence establishments within the next 24 hours,” Sirisena said in a televised address to family members. They may struggle with or face new challenges following the event and they may suffer from post stress traumatic disorder (PSTD) which authorities must take prompt actions. Interethnic anxiety has also risen in the affected districts as well as in the country.
There are a lot of uncertainties, tension and panic among people, due to ongoing threats of another round of explosions, ongoing security checking across country, suspicion about terrorists and state of emergency being issued and authorities warned that the country still faces the threat of ISIS terror attacks.
IMPACTS POLITICAL
The Inspector General of Police, Pujith Jayasundara, came under heavy criticism following the bombings with the United People’s Freedom Alliance urging that he resign for this total failure to prevent the bombings. Later, former Presidential candidate Field Marshal Sarath Fonseka claimed it was unfair to blame the IGP and claimed it was a conflict between the functioning of military intelligence and criminal investigators, and called for better intelligence mechanisms and security clearances to be streamlined.
In a speech delivered in Parliament, former President and Current Opposition Leader Mahinda Rajapaksa slammed the Government for weakening the intelligence services over the years.
He stated that in January 2015, he handed over a secure and peaceful country with a strong national security apparatus.
He claimed the present Government was squarely responsible for the 2019 Easter Sunday bombings, stating that on an important occasion such as Easter, representatives of the Government usually attend Mass; on this occasion, no representatives were present in or near churches.
He blamed the Government for diluting the powers of the national security apparatus and claimed this terrorist attack would never have occurred under his administration. Additionally, the Government was preparing to repeal the Prevention of Terrorism Act; he questioned what kind of position the Government would have been in to respond to the incident had they been successful in having the Act repealed.
On April 24, 2019, President Sirisena promised major changes to the leadership of the security forces within the next 24 hours and pledged a “complete restructure” of the police and national security forces in the coming weeks. These changes come amidst allegations that a rift between the President and Prime Minister contributed to the failure to effectively respond to threats that undermine national security.
The incident also caused a major setback for the Government and for other political parties just before the 2019 Sri Lankan presidential election. Prime Minister Ranil Wickremesinghe later apologised for failing to stop the attacks issuing a statement on twitter stating “We take collective responsibility and apologise to our fellow citizens for our failure to protect victims of these tragic events. We pledge to rebuild our churches, revive our economy, and take all measures to prevent terrorism, with the support of the international community.
ECONOMIC
Tourism in Sri Lanka is the country’s third largest foreign exchange earner and employs around 135,000 to 150,000 in the industry. The industry had expected three million tourist arrivals and a revenue of $5 billion in 2019. Due to the attack on tourists, The Hotels Association of Sri Lanka estimated a loss of $1.5 billion in tourism earnings for the year.
The Government’s plan to grant visa-onarrival to visitors from 39 countries has been suspended due to the current security situation.
SOCIAL
Minister Patali Champika Ranawaka called for the Batticaloa Campus and Islamic Study Centres (Madrasas) in Beruwala, Maharagama, Trincomalee and Addalaichchenai be brought under the control and supervision of the University Grants Commission (UGC) and the Education Ministry.
On April 27, 2019, Sri Lanka Cricket called off an under-19 tour of the country by the Pakistan cricket team, scheduled to take place in May, saying “We didn’t want to take any chances”.
In the wake of the attacks thousands of Sri Lankans bought terrorism insurance. Islamic channel Peace TV, which is run by preacher and televangelist Zakir Naik was officially banned in the country by the main satellite cable operators Dialog TV, PEO TV and Lanka Broadband Network following the attacks even before the Governmental intervention.
The channel is also alleged for its hate speech and also accused to have been used by the Islamic State to brainwash the youngsters and was previously banned in India and Bangladesh.
REACTIONS DOMESTIC RESPONSES
Leaders of the country condemned the attacks: President Maithripala Sirisena said “I have given instructions to take very stern action against the persons who are responsible for this conspiracy”, the Prime Minister Ranil Wickremesinghe said “I strongly condemn the cowardly attacks on our people today, Opposition Leader and former President Mahinda Rajapaksa called the attacks “absolutely barbaric” and said that the nation will stand united as one against “acts of terrorism”, and Finance Minister Mangala Samaraweera described the attacks as a “well co-ordinated attempt to create murder, mayhem and anarchy”.
Roman Catholic Archbishop of Colombo, His Eminence Cardinal Malcolm Ranjith said “It’s a very, very sad day for all of us. I wish therefore to express my deepest sorrow and sympathy I condemn to the utmost of my capacity this act that has caused so much death and suffering to the people.”
Following the attack, the Archbishop’s House in Colombo cancelled all Catholic Easter services planned for the evening of Easter Sunday.
INTERNATIONAL RESPONSE
Numerous world leaders expressed condolences and condemnation. President of the European Parliament Antonio Tajani referred to the bombings as an act of genocide.
The Finlandia Hall in Helsinki illuminated in the colours of the Sri Lankan flag to express solidarity.
After the bombings, numerous buildings around the world were illuminated in Sri Lanka’s colours, some of which included the Flinders Street railway station in Melbourne, the Opera House in Sydney, the Finlandia Hall in Helsinki, the Northern Spire Bridge and Penshaw Monument in Sunderland, the Burj Khalifa in Dubai, the Emirates Palace, ADNOC Headquarters, Capital Gate and Marina Mall in Abu Dhabi, the City Hall in Tel Aviv, the Pennsylvania State Capitol in Harrisburg, and the Sky Tower in Auckland. The Eiffel Tower in Paris went dark as a memorial for the victims of the bombings.
The New York Stock Exchange paused for a moment of silence before the opening bell on the day after the attacks. Real Madrid CF also had a moment of silence before the La Liga match on the night of the attacks. Candlelight vigils were held and flags were also flown at half-mast around the world including in Pakistan, Canada, Indonesia, New Zealand, Australia and the United Kingdom.
ISIS CLAIMED RESPONSIBILITY
In the meantime, the Islamic State of Iraq and the Levant (ISIL or ISIS or IS) group claimed responsibility for the bombings via its Amaq news portal.
“Those who carried out the attack that targeted the citizens of the coalition and Christians in Sri Lanka were Islamic State fighters,” the group said in a statement. In a later statement, the group gave the names of seven people, who it said were behind the “jihadist attack” that targeted Christians during their “blasphemous holiday”, referring to Easter. It also released a photo of eight men it said were behind the blasts.
SURVIVAL OF SRI LANKA AND WHERE ARE WE?
Survival of any nation on this planet depends on national security, economic capability, Diplomatic Capability, science and innovation capability, Information capability, strategic culture and finally political capability.
When political capability or the political leadership is weak, first and foremost national security will be threatened. Then it will hit the national economy. Followed by diplomacy, national science and innovation, national culture and information structure.
At present all the pillars of survival have been badly affected in our country. How did it happen? I believe, It is not that difficult for someone with common sense to understand where the real problem lies in our motherland?
Deshakeerthi Lanka Puthra, General, Dr Boniface Perera (PHD)
Reports on Rev. Fr. Cyril Gmaini, a prominent voice among those struggling for justice for the Easter Sunday attack, being summoned to the Criminal Investigation Department (CID) tomorrow (16) are false, LNW learned.
Queried on the matter, LNW was briefed by Fr. Gamini’s delegation that no such summoning has been made.
Meanwhile, a silent assembly will take place from 9 am to 12 noon in the precincts of the CID tomorrow. A number of priests and religious people will join in a silent recitation of the Rosary, and the lay people are also welcome to join.
Faiszer Musthapha PC, one of the senior vice presidents of the Sri Lanka Freedom Party (SLFP), has reportedly resigned from all of his designated Party titles.
His letter of resignation has been handed over to Party Leader, former President Maithripala Sirisena this (15) afternoon.
His resignation was announced during the special discussion held by the SLFP this afternoon.
A meeting between HRH Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum, Member of UAE Ruling Family, and President Ranil Wickremesinghe was held today (15).
The two parties exchanged views on the country’s current situation, and Prince Bin Juma Al Maktoum has expressed his support for Sri Lanka.
The two parties also discussed investments into the energy, technology and agriculture sectors in the country.
Authorities of the Réunion Island of France repatriated 46 Sri Lankan nationals to Sri Lanka by air on the evening of 13th January 2023. Reportedly, the group of Sri Lankans was apprehended as they were attempting to migrate to the Réunion Island illegally by sea.
The suspects set out aboard a multiday fishing trawler (IMUL – A- 0559 CHW) from Negombo on 02nd December 2022. The group of individuals comprises 43 males including the crew of the multiday fishing vessel, 02 females and 01 boy. They were apprehended as they were attempting to illegally enter the Réunion Island of France on 24th December 2022. They have been identified as residents of Jaffna, Kilinochchi, Mullaitivu, Mannar, Batticaloa, Chilaw and Negombo, from 13 to 53 years of age.
Meanwhile, the group of individuals will be handed over to the Criminal Investigation Department for onward legal action.
It has been revealed that the smugglers in Dehiwala area, who led this smuggling, charged an amount from Rs. 200,000 rupees to Rs. 4,500,000 from one person. Smugglers orchestrate this nature of unlawful acts with the intention of making a fast buck, by defrauding innocent people. Therefore, the Navy urges the public to avoid being victimized to such ploys and waste their hard-earned money.
The French government does not entertain the illegal entry of people to the Réunion Island and such people will be immediately repatriated upon apprehension.
Sri Lanka has set an ambitious target of US $1 billion monthly foreign inflow from worker remittance by end-2023 with more people leaving the island nation for offshore jobs after an unprecedented economic crisis, Foreign Employment and Labour Minister Manusha Nanayakkara said.
Workers’ remittance inflows have historically been a driving force of the Sri Lankan economy. Sri Lankan migrant workers’ foreign remittances have increased to US$ 475.6 million in December 2022 from US$ 325.2 million in December 2021, he disclosed.
He tweeted that this is a 46% (US$ 150 million) increase compared to the inflows recorded in December 2021.
However, the inflow of workers’ remittances contracted significantly in 2021 reflecting the implications of the COVID-19 pandemic and the increased tendency to remit money through informal channels.
At the same time, the external sector continues to show significant vulnerabilities making numerous challenges for the economy.
In this context, promoting workers’ remittance inflows to the country is imperative to overcome the heightened external shocks, Minister Nanyakkara added. .
Also, the importance of workers’ remittances as a steady source of foreign exchange in Sri Lanka has grown among the researchers and the policy makers
Worker remittances sent by Sri Lankan expatriates jumped 46 percent in December, but the inflows were still 31 percent down for the year after a record high number of the people migrated in 2022.
The remittances, which were the top foreign exchange earners fell from December 2021 most workers sought to send money via illegal hawala and undiyal methods in the face of the central bank kept the rupee propped up artificially.
Even after the currency was allowed to depreciate sharply from 200 rupees per dollar to 360, the worker remittances were down.
The remittances jumped 46 percent to $475.6 million in December 2022, compared to $325.2 million in the same month of the previous year.
However, the inflows fell 31 percent for the whole 2022 to $3,786.5 million from the previous year’s 5,491.5 million, the latest central bank data showed.
Though the island nation saw a record 311,269 people leaving the country as migrant workers last year, the worker remittances have yet to rise.
Sri Lanka market rates on longer-term government debt – bonds and treasury bills – are about twice as high as the high policy rates for overnight money, increasing the government’s burden in covering its budget deficit and refinancing maturing debt, several economic analysts said.
“If an appropriate downward adjustment in the market interest rates would not take place in line with the envisaged disinflation path, the central bank will be compelled to impose administrative measures to prevent any undue movements in market interest rates,” CBSL said in a statement.
The island nation has been struggling with soaring inflation, partly triggered by its worst financial crisis in seven decades and an ill-considered ban on chemical fertilisers implemented last year and since reversed.
Central Bank threatened administrative intervention to control high market interest rates that it regarded as out of line with the inflation outlook.
Any such action, interpreted by economists as meaning it might push market rates down, would lower the government’s high borrowing costs.
However, it was unclear how the central bank could force investors to support public finances at lower rates than they expected.
Well known banker, eminent economist and Board of Investment (BOI) chairman Dinesh Weerakkody said that h igh interest rates increase the cost of borrowings, reduce disposable income and thereby limit growth in consumer spending and business expansion.
When the cost of money in the form of interest rates rises rapidly, growth may slow down sharply or even give way to a contraction in the economy, with the risk of business bankruptcies.
With higher interest rates taking hold, borrowers should expect to pay more for business loans and consumers to pay more for medical loans, car loans, credit cards, and housing loans he said adding that indeed, a rising interest rate environment impacts consumers alike whether they are net borrowers or net savers – the former more than the latter.
How ever he pointed out that the positive side of high interest rates are they tend to reduce inflationary pressures and cause an appreciation in the exchange rate.
But Sri Lanka’s recent spike in inflation was largely driven by a man-made forex crisis from an artificially overvalued currency used to defend it, and thereby depleting its meagre usable foreign reserves. As a consequence we imported inflation, he claimed
The high interest rates have hit the middle and lower class right in the belly and negatively impacted the SMEs and now the organised private sector, he added.
With the instinct of all ways reversing the monetary policy after causing the damage, Governor of Central Bank Nandalal Weerasinghe disclosed recently that steps will be taken in 2023 to reduce key interest rates in Sri Lanka
Weerasinghe told media that inflation is also expected to fall in 2023 and Sri Lanka’s inflation rate eased to 57.2 per cent in December from 61 per cent in November, noting that this reflected that the policies they have taken from April 2022 were successful.
High interest rates have kept inflation down but the rates will be reduced as the economy stabilizes, he said.
Sri Lanka’s central bank in November 2022 decided to maintain the Standing Deposit Facility Rate and the Standing Lending Facility Rate at the levels of 14.50 per cent and 15.50 per cent, respectively.
Video on local media showed thick black smoke billowing from the crash site. Some bodies have been recovered from the wreckage, which an army spokesperson said had “broken into pieces”.
A plane carrying 72 people has crashed in Nepal, officials have said.
Video on local media showed thick black smoke billowing from the crash site as rescue workers and crowds gather around the wreckage of the aircraft..
It was carrying 68 passengers and four crew members, a spokesperson for the airline said. Of the passengers, 10 were foreigners while two were infants.
Ten foreigners were on board, as well as two infants, a spokesman for the airline said.
Some bodies had been recovered from the site in western Pokhara.
At least 16 people have been killed, an army spokesperson said.
“We expect to recover more bodies,” Krishna Bhandari said. “The plane has broken into pieces.”
Prime Minister Pushpa Kamal Dahal called an emergency cabinet meeting and urged security personnel and the general public to help with rescue efforts.
The twin-engine ATR 72 operated by Yeti Airlines was en route from the capital Kathmandu, the airport official said.
Plane crashes are not uncommon in Nepal, which hosts eight of the world’s 14 highest mountains including Everest, as the weather can change suddenly and make for hazardous conditions.
Last year 22 people died when a plane crashed on a mountainside.
In 2018 a US-Bangla passenger plane from Bangladesh crashed on landing in Kathmandu, killing 49 of the 71 people on board.
Fitch Ratings has downgraded the National Long-Term Ratings of 10 Sri Lankan banks following the recent sovereign downgrade and recalibration of the agency’s Sri Lankan national rating scale.
The recalibration is to reflect changes in the relative credit worthiness among Sri Lankan issuers following Fitch’s downgrade of Sri Lanka’s Long-Term Local Currency Issuer Default Rating (IDR) to ‘CC’ from ‘CCC’/Under Criteria Observation on 1 December 2022.
Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of ‘CCC+’ or below.
National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’.
Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale. National scales are not comparable with Fitch’s international rating scales or with other countries’ national rating scales.
The National Ratings of the Sri Lankan banks consider their creditworthiness relative to other issuers in the country.
The downgrades of the National Ratings of the 10 banks are driven by the downgrade of the sovereign’s Long-Term Local-Currency IDR and the recalibration of the national rating scale while also reflecting the relative creditworthiness among Sri Lankan issuers.
A probable default on the sovereign’s local-currency obligations increases the risk that authorities will impose restrictions on banks servicing their local-currency obligations. That said, we believe this risk is lower than non-payment by the sovereign.
The downgrade of CBL’s rating incorporates the additional consideration of parent CT Holdings PLC’s (CTH) limited ability to provide extraordinary support. This is reflected in CBL’s large size relative to the group and the bank’s weak standalone credit profile.
The Inland Revenue Commissioner General pointed out during the discussion that the amount of tax collected in the year 2022 is Rs. 860 billion and the amount of tax expected to be collected for the year 2023 is Rs. 1,667 billion in amount.
Accordingly, compared to last year, it is expected to receive more tax money amounting to 922 billion rupees this year, he said.
As Sri Lanka closes in on a $2.9 billion loan deal from the International Monetary Fund and its economy starts to stabilize, India is seeking to land ambitious long-term investments worth over $1 billion, including in the energy sector, with an eye on countering the influence of regional rival China.
Sri Lanka aims at increasing tax revenue by 69 percent to Rs.3,130 billion this year from Rs.1,852 billion in 2022 while bringing down the budget deficit to 7.9 percent in 2023 from revised 9.8 percent in 2022.
The high tax revenue target comes as millions of Sri Lankans face the impacts of the ongoing economic crisis – 66 percent inflation, job losses, and shrinking disposable income.
The largest amount which is Rs. 603 billion as expected tax revenue in 2023 is expected to receive from corporate income tax. The local revenue officials also indicated that an income of 553 billion rupees is expected from the value-added tax (VAT).