Concurrence of the Cabinet of Ministers was decided to be granted for the following programme presented by the President in relation to the payment of benefits with immediate effect under the ‘Aswesuma’ Social Welfare Benefit Programme.
• 1,792,265 beneficiaries have been selected for the initial step of Aswesuma programme by the Welfare Benefits Board and payments to be made for 1,588,835 beneficiaries in regard to whom no appeals or objections were received.
• Payment of benefits entitled under the category to which beneficiaries have been selected until a final decision is given after reviewing appeals of 84,374 beneficiaries who has submitted appeals for been included in the higher category although have been selected as beneficiaries.
• Objections have been submitted against 119,056 individuals from the selected beneficiaries and payment of benefits until the review process conducted in regard to the said objections have been finalized.
• 393,097 individuals who enjoy Samurdhi benefits at present and not been selected although have been applied for benefits under the programme to be paid the benefits under the Samurdhi programme until the appeals and objections review process is totally completed under the Aswesuma programme.
• Further payment of already paid kidney disease allowance and disability allowance through the Divisional Secretariates and further payment of elders’ allowance through the Post Offices.
• Further payment of allowance to 11,660 individuals who are in care giving homes or religious places and suffering from kidney disease, disabilities or due to been elders.
On the larger questions raised by the arrest of Tharindu Uduwaragedera, a young journalist of very wide reputation. Tharindu Uduwaragedera who was attending a meeting on Friday (28 July) for the purpose of reporting on the meeting was forcibly dragged out of a three-wheeler, grabbed by his hair and roughly manhandled by a group of Police officers despite the journalist loudly explaining that he was merely present to report on the protest meeting that was taking place. In fact, he was seated in a three-wheeler, from where he was dragged out in a mean and ugly manner, most unbecoming of members of any law enforcement agency.
Thanks to the available photos and videos, this whole incident was vividly and widely circulated in the country. Accidentally, the nature of the Police behaviour in Sri Lanka found itself vividly expressed by these photographs and videos. The arrest itself and the manner in which it was done and the manner in which the Police behaved will remain a spectacle for anyone who has any doubt about the utter degeneration to which the Police has been exposed to and the kind of behaviour that the people throughout the country are experiencing at the hands of a law enforcement agency which has gone out of control and shamelessly behaves against the law.
While the conduct of the particular officers who carried out the arrest and whoever that directed them is most reprehensible, which should concern anyone worried for the kind of societal collapse to which the law enforcement agency itself is contributing, this episode will provide lot of reasons for shock and worry about the nature of the country that Sri Lanka has become.
An overwhelming economic crisis has already bewildered the population. Forty per cent of the population lives under the poverty line and a large portion of that population is suffering from serious forms of malnutrition. Malnutrition and the expressions of acute poverty are the most visible aspects of the life and conditions of the country today. Also, this situation is many times aggravated by the reports of alleged deaths due to the medical negligence of many sorts and these deaths are being reported daily. The unbelievable tales of sheer neglect either on the part of medical staff or much more on the part of the bureaucracies that are handling these departments are the stuff through which the people are living through.
The manner in which conditions of life is becoming ever more unbearable and difficult need not be described in great detail as every Sri Lankan, including the ones living abroad and receive the daily dose of news, are fully aware of the bewildering reality that is unfolding throughout the country.
The larger question that affects all these issues is a total lack of concern by anyone who bears responsibility, legally or morally, being almost totally absent in the present situation. The kind of spectacle that was shown in the arrest of Tharindu would have caused severe reactions in any decent society both from its Parliament, its other political authority and in also those who hold positions of responsibility in the running of the country’s law enforcement and security systems.
Had there been any such concern, such arrests would not have happened at all. There is an underlying encouragement for barbaric behaviour within the law enforcement agencies themselves, encouraged by the top most persons who are responsible for the running of these institutions. It is sad to see that those who are thus in charge think that running the system badly is the way to maintain social control. Thus, there is a deliberately encouraged behaviour that is quite manifest in this and many other incidents in the country. If we contrast this behaviour of what occurred in relation to the incident to drunken driving by Minister of Justice in New Zealand, we see the contrast between civilisation and barbarism. In New Zealand, after a few drinks, when the Minister was driving his vehicle, he knocked into another vehicle and by the next day morning, he had resigned from his Ministerial post and his position as a Member of Parliament, and also withdrew from holding any public office in the future. He apologised to the whole nation. Contrast that with what happened in terms of this arrest in Sri Lanka and many barbaric treatments in the areas of food distribution, public health, education and every other field.
It is not even a matter of shame any longer to be pointed out that this is the sheer barbaric way of ruling a country. You may repeat such condemnations many times but no one hears these protests. When even the protest against such behaviour is not heard, then, what could and how could anything positive happen within those circumstances. This is where the Sri Lankan society, particularly the more educated, has completely failed the nation.
It is true that except for a brief period of early British colonialism, the kind of society that prevailed in Sri Lanka at least from approximately 8th Century Anno Domini (AD) – 19th Century AD, was a barbaric system based on draconian caste based organisational principles. There were those who proudly proclaimed in the 20th Century and thereafter, that we have arrived in times different from the ones where the principles of caste organisation which were provisions of social mobility and disproportionate and unequal society, were the basis of running the society. Barbarism was then the unavoidable fate of the larger section of the population in both the Sinhala and Tamil communities, the majority of whom were considered ‘lesser’ humans. They did not deserve the protection or to be treated as human beings.
If we were deluded with the idea that reforms have come to this society, democracy has been established and the rule of law exists in this country, then all that is happening belies this belief.
Unless the people themselves intervene immediately to bring about a radical Police reform, Sri Lanka as a rule of law society and democracy have no future at all. The centerpiece for any change is radical Police reform.
The first step is that the present Minister of law enforcement should apologise to the nation for what happened and accept responsibility for this incident and others perpetrated by the Police and others connected with illegal actors, as his own responsibility. There should be someone to accept responsibility, without which no State can survive.
Lawlessness is no solution to the worst economic crisis that the country is faced with. If the type of reforms needed for the country to recover, then it is important that the rule of law is restored and stability is created. While it is easy to talk of solutions to problems, such as improved discipline of the economy by various means including privatisation, reforms cannot be achieved so long as there is a violence prone law enforcement agency in the country.
Colombo (LNW): After receiving a series of complaints on technical errors in the notice calling for Expressions of Interest (EOI) for electronic passports (e-passports), Public Security Minister Tiran Alles has decided to suspend the notice and call for tenders.
The Cabinet paper put forward by Alles proposing the appointment of a technical assessment committee to assess the affairs pertaining to the matter and calling of tenders in consideration of the country’s economic situation has been approved by the Cabinet.
The EOI notice for e-passports was subjected to a series of complaints by those who had forwarded their EOIs claiming that it consists of many technical errors. Taking the matter into consideration, the Minister has called off the process and decided to proceed with the general procurement process.
More than seven hundred thousand e-passports ought to be issued per year and the affair may cost about US $15 million, a senior ministry official disclosed.
In addition, millions of dollars have to be spent on the machines used to issue the passports and the issuance of e-passports, therefore, has become a burden attracting a high cost, he revealed.
Colombo (LNW): The state owned Ceylon Petroleum Corporation (CPC) has given up its monopoly over the oil industry after 62 years following the opening up the petroleum imports storage distribution and sell to Sinopec, a leading Chinese energy and chemical company with effect from yesterday.
.Correcting a historic a mistake, the government was taking steps to allow multinational oil companies to recommence operations in Sri Lanka. The petroleum sector was nationalised in the early 1960s and the CPC was given a monopoly.
An agreement was also signed recently at the Presidential Secretariat, between the Government of Sri Lanka and RM Parks Inc., a prominent international company operating in collaboration with Shell, marking a significant step towards securing a long-term contract for the importation, storage, distribution, and sale of petroleum products in the country.
Power and Energy Minister Kanchana Wijesekera announced the first fuel cargo from Sinopec, a leading Chinese energy and chemical company, has commenced discharging, with the second cargo expected to arrive today.
Taking to Twitter, he said the entry of new retail suppliers to the domestic market holds the promise of easing the country’s foreign exchange requirements for petroleum products, a development that is set to fuel economic growth.
Minister Wijesekera said the new retail suppliers are poised to alleviate forex pressures by adopting a 12-month financing facility from their principal investors.
This move marks a strategic step towards bolstering forex efficiency and optimising the import process for petroleum products.
“Sinopec will commence retail petroleum operations with 150 fuel stations islandwide once the agreements with the fuel station dealers are signed and finalised,” he added.
On 14 July, Sinopec Energy Lanka Ltd., signed an agreement with the Board of Investment (BOI) for a $ 100 million investment in the import, storage, and sale of petroleum in Sri Lanka.
As part of this endeavour, Sinopec will have a total of 200 fuel stations countrywide, by assuming the control of 150 privately-owned fuel outlets currently operated by the Ceylon Petroleum Corporation (CPC), and by additional 50 new filling stations.
Sinopec will offer a wide range of petroleum products through its fuel stations, including 92 and 95-octane petrol, 500 PPM diesel, diesel 10 COPPM, petroleum jet fuel, and other diesel and petroleum products.
Colombo (LNW): President Ranil Wickremesinghe has issued an extraordinary gazette taking over two government bodies under to the Ministry of Transport and Highways and the Ministry of Urban Development.
These two government institutions are:
Sahasya Investment Limited National Equipment and Machinery Organisation
These institutions from hereon will be serving under the purview of the Ministry of Finance, Economic Stabilisation and National Policies.
The gazette also declares certain changes in the scopes of several ministries.
Colombo (LNW): Except for a few showers in Western and Sabaragamuwa provinces and in Galle and Matara districts, mainly fair weather will prevail elsewhere over the Island, the Department of Meteorology said in its daily weather forecast today (02).
Fairly strong winds about (40-45) kmph can be expected at times in western slopes of the central hills, Northern, North-Central, Southern and North-Western provinces, and in Trincomalee district, the statement added.
Marine Weather:
Condition of Rain:
Showers may occur at a few places in the sea areas off the coast extending from Colombo to Matara via Galle.
Winds:
Winds will be south-westerly and speed will be (30-40) kmph. Wind speed may increase up to (55-65)kmph at times in the sea areas off the coast extending from Hambantota to Pottuvil and the sea area off the coast extending from Puttalam to Kankasanthurai via Mannar. Wind speed may increase up to (45-55)kmph at times in the other sea areasaround the island.
State of Sea:
The sea areas off the coast extending from Hambantota to Pottuvil and the sea area off the coast extending from Puttalam to Kankasanthurai via Mannar will be rough at times. The other sea areas around the island may fairly rough at times.
Colombo (LNW): The Central Bank of Sri Lanka (CBSL) published its inaugural Monetary Policy Report (MPR) on Monday (July 31).
The publication of the Monetary Policy Report marks an important step towards improving the transparency of monetary policy and is expected to promote engagement with all stakeholders of the economy through the dissemination of information that was considered by the Monetary Board of the Central Bank of Sri Lanka in the formulation of monetary policy decisions, the Central Bank said in a statement.
The MPR presents the Central Bank’s assessment of the future trajectory of inflation and other key macroeconomic variables based on the analysis of the current macroeconomic developments on the domestic and global fronts, and their outlook.
The MPR also aims to provide an assessment of the balance of risks to the projections on inflation and economic growth considering the ongoing and expected developments. Such assessment would help provide greater clarity to all stakeholders on the thinking of the Monetary Board when arriving at monetary policy decisions.
The Central Bank said it would publish the MPR in January and July each year in line with the major monetary policy review cycles that update medium-term projections.
In doing so, the Central Bank would provide data-driven and forward-looking information to all stakeholders in a timely manner. This would enhance the transparency and accountability of the monetary policy making of the Central Bank, while assisting in the anchoring of inflation expectations of the general public.
The MPR will complement the existing communication on the monetary policy process of the Central Bank, including the Monetary Policy Review press release, press conference proceedings, and other communiqués featured on the official website and social media of the Central Bank.
Colombo (LNW): As per the latest data from the Central Bank, cumulative export earnings during January to June 2023 registered a 10% decrease year-on-year (YoY) to $5.87 billion, whilst import expenditure during the same period saw a substantial decline of 18.6% YoY to $ 8.16 billion.
It also noted the deficit in the trade account from January to June 2023 narrowed to $ 2.89 billion, a considerable improvement from the $ 3.5 billion recorded during the same period in 2022.
As the country continues its journey towards economic recovery, maintaining this positive trend and addressing structural vulnerabilities will be crucial in ensuring long-term economic stability. Thus, the narrowing trade deficit showcases some progress in managing trade imbalances.
In June, earnings from exports declined by 19.5% YoY to just over $ 1 billion. The Central Bank noted that this decline mainly reflected the high base in June 2022, and all major subcategories of merchandise exports recorded a decline in June 2023 compared to year earlier.
However, in contrast, expenditure on imports increased by 11.6% $ 1.36 billion in June 2023, compared to $ 1.22 billion in June 2022. The Central Bank said the increase in import expenditure was observed across all main categories of imports, which was supported by the significantly low base in June 2022.
Detailing the imports, it said the biggest intermediate goods category of imports in June saw a rise of 7.3% YoY to $ 875.4 million, which also includes fuel bills rising by 45% YoY to $ 290 million and investment goods marginally increasing by 2.5% YoY to $ 239.9 million and consumer goods imports increased significantly by 42.6% YoY to $ 251.7 million.
The Central Bank said the relaxation of import restrictions, commenced during June and July 2023, could gradually generate higher import expenditure in the period ahead.
Expenditure on the importation of consumer goods increased in June 2023, compared to a year ago, driven by the increases in expenditure on both food and non-food consumer goods. Expenditure on food and beverages increased due to the increase in import volumes of sugar; oils and fats (primarily, coconut oil); and vegetables (primarily, lentils).
A sizeable increase in expenditure on non-food consumer goods was due to the imports of medical and pharmaceuticals (mainly, medicaments), telecommunication devices (mainly, mobile telephones), and cosmetics and toiletries.
Expenditure on the importation of intermediate goods also increased in June 2023, mainly driven by the imports of fuel and base metals (mainly, iron and non-alloy steel). Import volumes of crude oil and refined petroleum increased in June YoY, although coal imports remained limited due to the off-season.
Colombo (LNW): Sri Lanka’s construction industry has been greatly affected for the last two years, even before the economic crisis took place in April 2022, due to a lack of new projects and the higher cost of construction.
However, the recent import relaxation on some 30 construction-related materials could give some hope to the sector, which has been one of the main drivers of economic growth in the past years.
Sri Lanka’s construction industry is expected to grow by 9.2% to reach Rs. 1,535 billion in 2023.
Despite near-term challenges in certain construction sectors, it predicts that the medium to long-term growth story in Sri Lanka remains intact as the construction industry in Sri Lanka is expected to grow steadily from Q2 2023 to Q1 2024.
The growth momentum is expected to continue over the forecast period, recording a CAGR of 7.6% during 2023-2027 while the construction output in the country is expected to reach Rs. 2,058.3 billion by 2027.
According to a newly released report on the construction PMI survey, Sri Lanka’s construction industry remained contracted in June 2023 amid the lack of new projects, recording a total activity index value of 44.4.
The Central Bank yesterday said from June onwards the construction PMI survey results will be released to the public every month, similar to the PMI surveys on manufacturing and services.
The Statistics Department of the Central Bank has been conducting the PMI survey for construction activities since June 2017, delivering key industry insights to the Central Bank, assisting the policy formulation process.
According to the June survey, most of the construction sector companies operate at a sub-optimal level amid the limited availability of construction projects. An index value less than 50 indicates a contraction.
However, several respondents had mentioned that the steady decline in material prices has induced to commence small-scale construction work.
The continued decrease in new orders also reflected the lack of new projects.
The respondents had mentioned that sizable projects were hardly available, except for some foreign-funded projects, and the bidding for available tenders was also highly competitive.
However, they expect the suspended large-scale projects to gradually recommence later in the year.
Further, employment in the country’s construction sector remained contracted in June, mainly due to the layoffs after project completions.
Quantity of purchases also declined in line with the decrease in pipeline projects while suppliers’ delivery time remained shortened during the month due to low order quantities.
Colombo (LNW): The government authorities are carrying out a domestic debt restructuring process or debt optimization (central bank’s term) under a well designed plan to attract the attention of creditors and if it fails to gain their consent then avoiding doing more harm than good might be very difficult, official sources claimed.
To ensure that it is done right the first time, sovereign domestic debt restructuring should be part of a broader policy package that effectively addresses the fundamental problems and debt vulnerabilities, it added.
The island nation is persuading domestic creditors for a moratorium on debt repayments to manage Sri Lanka’s public debt rollover risks in the future as it has become essential to tackle the debt crisis.
At the recent investor presentation on DDO conducted on July 07, the response of participants was positive but there was no indication for an agreement for the government’s policy actions and a comprehensive debt treatment, informed official sources reveled.
To garner broad creditor participation in the restructuring and reduce the likelihood of costly litigation, the process of restructuring has to be perceived as fair and transparent.
International Monetary Fund (IMF) is likely to suggest some amendments to their Debt Sustainability Analysis (“DSA”) targets by considering the slow progress of achieving economic reform program commitments to ensure that the country restores the sustainability of its public debt
Its first policy review in September, the IMF may direct Sri Lanka towards the second Domestic Debt Optimization (DDO) strategy if the targets of the current plan are not achieved, official sources warned.
According to the central bank governor Nandalal Weerasinghe “if the country deviates from the current path, there could be another domestic debt optimization as well as another default and bankruptcy.
On the other hand the government is facing a daunting tasks of reducing its debt stock to 95 percent in 2032 from 128 percent in 2022, bringing down of GFN target to 13 percent of GDP in 2027-32 from 34.6 percent in 2022 and reduce FX debt service target to 4.5percent of GDP in 2027-32 from 9.4 percent in 2022.
Although it is branded as double edged sword by opposition politicians and some economic experts, the need to manage Sri Lanka’s public debt rollover risks in the future has become essential to tackle the debt crisis, former finance minister Ravi Karunanayake disclosed.
Restructuring domestic debt is a tool for the country facing fiscal and economic stress. And it should not drag into the second round of restructuring, he said adding that IMF is flexible to consider the government’s situation and accommodate its proposals and explanations relating to implantation of economic reforms.
