Sri Lanka’s rupee is set to decline and lose almost a fourth of its value against the dollar by end-2023, according to. Bloomberg report.
“Authorities have to remain committed to enacting tough reforms to stay on track with the IMF program. This might be politically challenging against the backdrop of a weakening economy and a local election likely on the horizon
The rupee is to weaken about 25%-23% to a record low of Rs.390 per dollar by year-end. The rupee advanced 0.5% to 316.8 per dollar on Thursday, taking its annual gain to 14%.
That’s after the IMF said it will decide on a $2.9 billion bailout for Sri Lanka on March 20 following China’s assurance that it will support the nation’s debt restructuring.
It has been predicted the rupee will rise further to 309 per dollar on last Thursday. Sri Lanka has increased taxes, cut energy subsidies and loosened its grip on the currency to secure the IMF loan.
The central bank recently lifted borrowing costs further to ensure that inflation which has slowed from nearly 70% doesn’t flare up.
“Sri Lanka still has significant external debt repayment needs and will need to build up its foreign reserve buffer over the coming months, which would put downside pressure on the exchange rate,” Bloomberg reported.
Sri Lanka needs further rate hike to contain monetary expansion and put the brakes on inflation but a rate hike is will also help support the rupee, W A Wijewardena, former Deputy Governor of the central bank said.
An overall plan covering interest rates, exchange rates, and the budget was needed.“We have to raise rates to contain the rising inflation in the country,” Wijewardene said.
“But it has a positive effect on the exchange rate. One reason very high demand for imports is the money available. The high aggregate demand is driving imports.”
Wijewardene said the 200 rate was could not be held and the day of reckoning had come.
He said the 7.50 policy rate was not enough because the Treasury bill yields have already gone above 10 percent.
Sri Lanka’s Central Bank’s intervention with dollar buying has prevented sharp appreciation of the rupee, dealers say, as the rupee is under upward pressure amid negative credit and the lifting of a surrender rule.
The rupee is trading between Rs 312-318 against the US dollar compared to Rs.360 level a week ago, showing a near 15 percent rise.
The sharp appreciation comes amid speculation over dollar inflows from International Financial Corporation amounting to US$400 million into three private banks and further inflows soon after the International Monetary Fund (IMF) Executive Board approval of a $2.9 billion loan later this month.
Sri Lanka rupee to decline 25 percent of its value by end 2023.
Easter Carnage prime suspect Hashim’s wife granted bail under severe conditions
By: Isuru Parakrama
Colombo (LNW): Fathima Hadiya, also known as the wife of the prime suspect of the Easter Sunday genocide, Zahran Hashim, has been granted bail by the Kalmunai High Court after being detained under the Prevention of Terrorism Acti (PTA) for four years.
Hadiya was arrested by the Criminal Investigation Department (CID) on the allegation of not disclosing information pertaining to the carnage, and was kept under the CID watch and in remand custody thereafter for four years under the controversial PTA.
As the suspect was produced before the Court yesterday (15), she was released on a cash bail of Rs. 25,000 and two sureties of Rs. 2.5 million each. Hadiya is banned from travelling overseas and ordered to appear before the CID on the last Sunday of every month.
Thundershowers favoured by atmospheric conditions: Met Dept
By: Isuru Parakrama
Colombo (LNW): The atmospheric conditions are getting favourable for afternoon thundershowers in most parts of the island, and therefore, showers or thundershowers will occur at several places in Western, Sabaragamuwa, North-Central, North-western and Uva provinces and in Galle, Matara, Kandy, Nuwara-Eliya and Mannar districts during the afternoon or night, the Department of Meteorology said in a statement today (16).
Fairly heavy rainfall of about 75mm are likely at some places in Sabaragamuwa province and in Kaluthra, Galle and Nuwara-Eliya districts.
A few showers may occur in the coastal areas of the Eastern province.
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: |
| Showers or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle. |
| Winds: |
| Winds will be easterly to south-easterly and wind speed will be (20-30) kmph. |
| State of Sea: |
| The sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers. |
The not so cool Rupee depreciation goes on!
By: Isuru Parakrama
Colombo (LNW): The Sri Lankan Rupee indicates further depreciation against the US Dollar as revealed by today’s (16) exchange rate charts of a number of commercial banks in Sri Lanka.
Bank of Ceylon (BOC) yesterday (15) revealed the buy price of the US Dollar to be Rs. 326 and the sell price Rs. 344, only to indicate further depreciation as Rs. 331 and Rs. 349.54 today (16).
Yesterday, People’s Bank revealed the buy price Rs. 325.26 and the sell price Rs. 344.31, and today, Rs. 327.20 and Rs. 346.37.
The exchange rates of Sampath Bank remain unchanged.
The sell price of the US Dollar has exceeded Rs. 350 in Commercial Bank.
Sri Lanka Original Narrative Summary: 16/03
- LKR selling rate crashes from 335.68 to 344.68 against the USD recording a massive depreciation of Rs.8.98 (2.7%) in a single day: LKR said to be trading in “grey” market at over 375.00 per USD: LKR also depreciates 8.7% from 387.11 to 420.68 against the GBP from 9th to 15th March.
- Media Spokesperson of the GMOA Dr. Chamil Wijesinghe says the island-wide strike launched by the GMOA will be called off temporarily at 8.00am today.
- Census Dept says the economy in 2022 suffered the worst ever contraction of 7.8%: 4th quarter contraction of 12.4%: all 3 major economic activities of Agriculture, Industry & Services suffer contraction: in 2021, growth was a positive 3.5%.
- People’s Action for Free and Fair Elections Director Rohana Hettiarachchi says it is highly unlikely the LG election would be held on April 25 as announced by the Elections Commission: laments the Govt is ignoring Court decisions.
- PM Dinesh Gunawardena says he will prevail on the President to submit a Cabinet proposal to rectify the British Crown’s decision to exile Ceylon’s national heroes of the Great Rebellion of Uva Wellassa: laments State Counsels and President’s Counsels have not come forward to correct that decision which betrayed the country’s national heroes.
- IFC Country Manager Alejandro Alvarez de la Campa explains the modalities of the much-hailed “USD 400mn cross-currency SWAP” for 3 Sri Lankan commercial banks: says the agreement is to trade currencies where cash flows in one currency is exchanged for cash flows in another currency at defined rates: analysts point out there is no new Forex inflow due to the SWAP as initially believed by some persons.
- Easter Sunday bomb attack main suspect Zaharan Hashim’s wife Fathima Hadiya granted bail by Kalmunai High Court after being detained under the PTA for 4 years: CID obtains detention order for 3 months under the PTA to detain & interrogate notorious drug dealers Nadun Chinthaka alias ‘Harak Kata’ & Salindu Malshika alias ‘Kudu Salindu’.
- Tea exports in Feb’23 down by 13% YoY: main tea categories dip: Turkey, Iraq and Russia emerge as top 3 buyers: exports to Japan, Lebanon & Belgium improve significantly.
- Cabinet Spokesman Dr Bandula Gunawardana warns “anyone who violates the essential services order will face the full force of the law”: however, due to yesterday’s strike, more than 90% of schools close: out-patient depts at hospitals close: dockers at the Colombo port stay away: air traffic controllers “go slow” for two hours.
- Finance State Minister Dr. Ranjith Siyambalapitiya says the country loses Rs. 46 bn in earnings per day due to strikes: also says the damage to education due to the strike is too high to be calculated: asserts the country and economy can’t be prevented from collapsing again if such “baseless strikes” are carried out.
The Sane March Days are here again. Let the Big Match healing begin!
By: Krishantha Prasad Cooray
The season of big-matches is upon us. These cricket encounters are big for the respective schools, not for others. In fact as far as the particular schools are concerned they are huge. It’s THE event of the year.
Today there are big-matches in all parts of Sri Lanka, so many that few can escape them for the spectacle is not contained by the walls of the schools. It not only spills over to the streets but climb over the walls of other schools as well. Well, the girls’ schools at least. For history and spectacle, however, it can be argued that no match comes even close to the Royal-Thomian encounter. Royal College and St Thomas’ College, Mount Lavinia have played this annual encounter for over 140 consecutive years. That’s including the war years and the period of Covid-19 related lockdowns.
All good fun for the most part. And so, over the years we have come to expect phrases such as ‘Big Match Fever,’ and ‘Mad March Days.’ Today, several decades after leaving St Thomas’ I feel that it’s not a disease; the Big Match, the Battle of the Blues that is, is a healer. There’s nothing ‘mad’ about March; the Big Match provides sanity in a world of routine and grind marked by chaos, uncertainty and drudgery.
For me, like for countless Royalists and Thomians, the Roy-Tho is not only the oldest continuously played cricket series in the world but an extraordinary carnival that adds value to comradeship and friendship. It’s all about memories, traditions, sportsmanship and life in general. It is a holiday unlike any other. We walk into the SSC, where the big match has been played for decades except for the last two years when the venue was shifted to Suriyawewa due to containment protocols related to Covid-19, and we are suddenly in this incredible space where we just don’t have to guard our tongues or worry about perceptions being wrecked. We can be frank, open and basically ourselves without having to think twice before saying or doing anything. It’s not a shut up and sit down event but a get up and speak up one where everyone is equal.
We all have school memories. Among them, those associated with the Royal-Thomian are the most precious. The truth is, as schoolboys we never thought about memories. We just had fun. Incredible fun. Little did we know that we were in fact creating memories that would stay with us and keep us warm when we are battered by the harsh and freezing winds of life.
It’s not just students and old boys. It’s everyone associated with the two schools including teachers, non-teaching staff, parents, friends, girlfriends and others who identify with each School for as simple a reason as living close by!
I still vividly remember the 1990 Big Match. Naresh Adikaram, the Thomian captain, lost his father a few days before the Roy-Tho. He attended the funeral, and a few hours later was at the SSC, leading his boys. He scored over 70 runs in that match. Such courage, such composure! I am sure it was appreciated and applauded by both Thomians and Royalists.
Of course, what happens in the middle of the ground is hardly what makes the Royal-Thomian so special. The carnival, so to speak, unfolds outside, in the stands, among friends, in the back-and-forth of reminiscences by old men whose firm belief they’ve not aged is a product of the amount of alcohol consumed, the papare bands, dancing in the tents, the supporters affirming yet once again that the only tune they can hold is that of the school song, and the occasions pitch-invasion.
It was not uncommon even back then for some of the most colourful personalities of our generation, from Varuna Botejue, Charya De Saram or Prasad Wimalasekara, to spend weeks before the Royal Thomian planning for the event. I remember being aghast, as a senior student, seeing my younger brother Nishantha running into the field, the college flag in hand. He was just about eight years old then. Such interruptions are expected, cheered or jeered, and looked back upon with a smile that says, ‘we were so much younger then, and we can only be as young again on the three days in March when we attend the Royal Thomian.’
And we graduated from the boys’ tent to the Stallions, the Colts, the Mustangs and other horse-enclosures that don’t have anything to do with age but nevertheless celebrate merry-making to the maximum, such as the Stables, set up by Krishan Perera and his team 19 years ago.
On the Thomian side, I still remember how seriously cricket legends like Michael Tissera and Anura Tennakoon would come and invest so much of their time and energy helping to advise, support and mentor our team. All this while the late Warden Neville De Alwis and Sub Warden former Bishop Duleep De Chickera would be warning the ‘yakos’ such as myself to kindly refrain from assaulting prefects during the match.
It’s a pilgrimage as holy as any other. This is why Royalists and Thomians time their visit to the ‘mother-country’ so that they can go to the Big Match. It’s a temple where there’s community worship of things that matter: friendship, camaraderie and memories that just don’t age.
The Sane March Days are here again. Let the Big Match healing begin!
Sri Lanka: Parliamentary action undermines independence of the Judiciary
13 March 2023
The ICJ today called upon the Government to respect an Interm Order of the Supreme Court to ensure that funds are available to hold local elections and for the Speaker of Parliament to withdraw his referral of Supreme Court Judges for inquiry of a potential breach of parliamentary privileges.
On 7 March, Government Member of Parliament, Premnath Dolawatte, requested the Speaker of Parliament to refer the conduct of the judges of the Supreme Court who gave the interim order pertaining to Local Government Elections as a breach of Parliamentary Privileges. The Speaker accepted the request and made the referral to the Parliamentary Committee on Ethics and Privileges.
The ICJ considers that these actions by the government constitute a serious and unwarranted encroachment on the independence of the judiciary and the judicial function.
“It is fundamental rule of law principle that the judiciary has jurisdiction over all issues of a justiciable nature, including questions regarding its own jurisdiction and competence”, said Ian Seiderman, ICJ Legal and Policy Director. “It is not for any political actor to determine whether the Supreme Court has acted within its authority”
The ICJ is particularly concerned that on March 10, State Minister of Finance Shehan Semasinghe told Parliament that “it is a serious offence to implement the interim order before hearing the privilege issue by the Parliamentary Committee on Ethics and Privileges.” The Minister then requested the Deputy Speaker to advise all relevant authorities not to act on matters relating to the polls until the said Parliamentary Committee concludes its inquiry on the matter.
The ICJ stressed that the Interim Order issued by the Supreme Court instructing the Finance Ministry Secretary and the Attorney – General not to withhold funds for local government elections, must be carried out.
“Refusal to respect an interim order made by the Supreme Court and referring it for an inquiry by Parliament breaches the separation of powers and sets a dangerous precedent in a country where the independence of the judiciary is already fragile” said Ian Seiderman.
The ICJ recalled that the UN Basic Principles on the Independence of the Judiciary state that “it is the duty of all governmental and other institutions to respect and observe the independence of the judiciary” and “there shall not be any inappropriate or unwarranted interference with the judicial process, nor shall judicial decisions by the courts be subject to revision.”
Foreign Minister Ali Sabry participates in Commonwealth Day Commemorative Events
Media Release
Foreign Minister Ali Sabry who is on an official visit to the United Kingdom to participate in the 22nd Commonwealth Foreign Ministers Meeting attended a number of events commemorating the Commonwealth Day on 13 March 2023.
The main event was the Commonwealth Day Service at Westminster Abbey which His Majesty King Charles III, Queen Consort and members of the Royal Family attended. During the service, Chief Sangha Nayaka of Great Britain and Chief Incumbent of London Buddhist Vihara Ven. Dr. Bogoda Seelawimala invoked blessings on the Commonwealth of nations and its peoples on behalf of Buddhists. In commemoration of the 75th anniversary of Sri Lanka’s independence, the High Commission of Sri Lanka in the UK facilitated Roshani Abbey and Nuwan Hugh Perera, Sri Lankan artistes to perform at the service. The service also featured a procession of young flag bearers representing each of the 56 nations of the Commonwealth, where Thejani Mahadiulwewa carried the Sri Lankan flag.
Foreign Minister Sabry also attended the reception hosted by His Majesty King Charles III at Buckingham Palace on the occasion of the Commonwealth Day.
Earlier in the day Foreign Minister Sabry participated in the Commonwealth Day ceremonial flag-raising hosted by Speaker of the House of Commons The Right Hon. Sir Lindsay Hoyle at the Palace of Westminster. The minister laid a wreath at the wreath-laying ceremony at the Commonwealth Memorial Gates, to pay tribute to the five million servicemen and women who served in the Armed Forces during the First and Second World Wars, and also participated in the flag-raising event for the Commonwealth Flag for Peace at Marlborough House.
High Commissioner of Sri Lanka to the UK Saroja Sirisena was associated with Foreign Minister Sabry at these events.
High Commission of Sri Lanka
London
A heated situation in the port of Colombo amidst the strike (VIDEO)
Today (15th) trade unions in Colombo Port are also on strike and the media has reported how there was a heated situation between the strikers and Navy officers.
President writes open letter to bilateral creditors with appeals and assurances
- Letter with clarifications aimed at providing comfort to all and enable SL to progress swiftly to next stage of the debt treatment negotiations
- Reiterates he is committed to stay the course, and says SL relies on creditors to do the right thing
- Woos all to maintain and even enlarge and strengthen official bilateral creditor coordination
- Says new era starts with full implementation of IMF-supported program and resolution of debt situation
- Commits to transparency and assures SL will not make any side arrangements with any creditor aimed at reducing debt treatment impact on that creditor
- Assures not to resume debt service to any creditor unless that creditor agrees on a comprehensive debt treatment in line with IMF-supported program parameters and comparability of treatment principle
President Ranil Wickremesinghe yesterday wrote an open letter to all official bilateral creditors of Sri Lanka with multiple appeals and assurances ahead of next week’s Executive Board consideration and approval of $ 2.9 billion four year Extended Fund Facility (EFF).
The letter contains clarifications aimed at providing comfort to all and enable Sri Lanka’s to progress swiftly to the next stage of the debt treatment negotiations.
Following is the full text of President Wickremesinghe’s open letter.
It was with great satisfaction and sincere hope that I welcomed the announcement made last Tuesday by the Managing Director of the IMF, Kristalina Georgieva, that an IMF Executive Board meeting will be held on 20 March 2023 to consider and hopefully approve the Extended Fund Facility (EFF) arrangement we requested as part of our efforts to restore macroeconomic stability and debt sustainability.
I would like to praise your diligence and express my gratitude to the Paris Club creditors and Japan in particular, and to India and China for enabling the cooperation required to arrive at this point and explicitly delivering IMF compatible financing assurances as well as the other creditor countries which answered the Paris Club creditors’ call to join them. I would also like to thank the Paris Club Secretariat for supporting these efforts.
Since taking office last July, my Government and I have been engaging in good faith with all of you, providing all the necessary information to enable you to make a proper assessment of our debt situation, and the required efforts to close our funding gap and restore debt sustainability. My Government also deployed all efforts to demonstrate our commitment to the EFF program and relentlessly engage on the path to reforms. Our administration has already implemented major reforms by way of prior actions agreed with the IMF.
In the 75 years of Sri Lanka’s independence, there has never been a more critical period for our economic well-being and future development. That is why we have introduced a robust reform agenda aimed at achieving debt sustainability, strengthening governance, widening the social safety nets supporting the most vulnerable and ensuring we can grow an inclusive economy attractive to international business. This is how we will improve the lives of our people and ensure they are first in line to benefit from improvements in our economic conditions.
The IMF-supported program will be critical to achieving this vision for our country. Hence, this new era starts with the full implementation of the IMF-supported program and the resolution of our debt situation with you as long standing partners, as well as with our commercial creditors. There is still a lot of work to be done together. I encourage you to maintain and even enlarge and strengthen official bilateral creditor coordination in the context of our forthcoming engagement. It is the best way of achieving an efficient, transparent and equitable implementation of our debt treatment exercise. For that, I call on the Paris Club bilateral partners, in particular Japan, together with all our other official bilateral partners, including India and China, to garner and foster coordination as you best see fit.
We also understand and acknowledge that we must ensure that appropriate safeguards are in place to ensure equitable burden sharing and comparability of treatment. To alleviate any legitimate concern in that regard, there are commitments that we can make to those of you willing to take action ahead of the others.
The first of these commitments, probably the most important one, is transparency. We commit to communicate transparently with all of you on any debt treatment terms that are agreed with any creditor or group of creditors, before being formalised. In the same vein, we commit to report regularly on our indebtedness, ensuring no financial liabilities incurred by the country are undisclosed.
Second, we commit not to resume debt service to any creditor unless that creditor agrees on a comprehensive debt treatment in line with IMF-supported program parameters and the comparability of treatment principle.
Third, we reiterate our commitment to a comparable treatment of all our external creditors, with a view to ensuring all-round equitable burden sharing for all restructured debts. To that end, we will not conclude debt treatment agreements with any official bilateral creditor or any commercial creditor or any group of such creditors on terms more favourable than those agreed under any multilateral platform put forward by our official bilateral creditors. Offering a debt treatment outside of the perimeter set by the debt targets under the IMF program would risk making Sri Lanka’s debt unsustainable again. To this end, we also confirm that we have not and will not make any side arrangements with any creditor aimed at reducing the debt treatment impact on that creditor.
I sincerely hope that these clarifications will provide comfort to all of you and enable us to progress swiftly to the next stage of the debt treatment negotiations. This is paramount for our country. Just as my administration and I have committed to do, we rely on all of you to do the right thin
DAILY FT