The Tamil Progressive Alliance has decided to suspend the party membership of Member of Parliament M. Velukumar who abstained from voting in the 2023 budget final vote held yesterday (08) afternoon.
The leader of that alliance Mano Ganesan said that this action will be taken against the MP Velukumar because he abstained from voting while the party had taken a decision to vote against the budget.
President Ranil Wickremesinghe said that the country has had to face adverse repercussions today due to the short sighted popular decisions taken in the past and unpopular decisions have had to be taken for the future prospects of the country.
The President made this observation today (08) taking part in the third reading debate of the budget proposal for the financial year 2023.
He said further that a Parliamentary Select Committee will be established on a resolution by the Parliament to look into those who led the economy to bankruptcy with their incorrect fiscal policies.
The statement made by President Ranil Wickremesinghe is as follows:
Some members discussed of the Mahaweli lands. The lands of the state were under the Land Commissioner until 1977. Due to the rapid development, some of the urban and rural lands were brought under the Urban Development Authority, Mahaweli Authority, and several other corporations. But now, no one knows as to where those lands are or what they are doing with them. Hence the government is concerned to find out as to where the government lands are, and to whom they have been given. Although this is done through Divisional Secretary, he cannot issue lands as he wishes and a committee will be appointed in this connection. The government hopes to cancel all those grants of lands. Some spoke against taking over Mahaweli lands but they were all under the Land Commissioner earlier. By now people have been settled in most of the lands under those institutions. But the rest have not been handed over to the Land Ministry by the Agriculture Ministry. Some institutions are still in the process of settling the people in those lands. We don’t have any issue with them. They can continue to develop them and settle people in them. However the government owned lands in Mahaweli B, C and H zones and lands in Anuradhapura and Polonnaruwa should be identified and make them available for the public to use. Despite the agriculture is developed by both Mahaweli Authority and Agriculture Ministry, so far we have not been able exceed the harvest above 6 Mt of paddy per hectare. That is the government’s concern and nobody needs to worry of this government’s move.
In addition, in accordance with the Education Minister’s request, we agreed to establish nongovernmental universities. Hence when we meet on 12 and 13, let’s discuss this matter with the former education ministers and other MPs and let’s reach a decision by next January. Thereafter we can establish those universities.
I would like to request the Speaker, as if we discussed earlier to appoint five youth to each Ministerial Consultative Committee, we can soon finalise the criteria of selecting them without delay. If we delayed it, the youth would inquire as to what has happened to it.
The Energy Minister said that electricity tariffs were increased last August. However the increase is not ample as it is estimated that the loss would be Rs. 151 billion. The total loss since 2013 is Rs. 300 billion. If drought prevails next year, we need Rs. 420 billion for next year’s electricity. If it rained, we need Rs. 352 billion while Rs. 295 is required if rained so much to have floods. How are we going to find this money? We would have to print money, but Rupee would depreciate. We would have to increase VAT but it would increase the price of all commodities or to charge it direct.
However the parents requested not to cut power due to GCE (A/L) examinations of their children. Nobody including the politicians is willing to increase the prices. What is the option we have other than that?
After the discussions with China, we can go to the next step if we handle the economy somehow or other now with difficulty. If we can’t show the profits at such a situation we also suffer losses, nobody outside would aid us. The Prime Minister and I discussed this matter and we have to take decisions which are not popular for the sake of the country. The other countries at a time took those decisions not popular but were beneficial to their countries. We have not increased the electricity bills since 2013 and all of us are responsible for the loss. Now what are we going to do? If you have a deficit of Rs. 400 billion, what are you going to do? There are only 03 options: print money, put on VAT or charge directly.
I was the one who initiated to draft the Public Utilities Commission of Sri Lanka (PUCSL) Act. There the powers are vested on Minister and the Cabinet. There is a letter from the Attorney General which says it is evident from the afore mentioned provisions in the Sri Lanka Electricity Act general policy guidelines of pricing could be issued by the Minister and that such policy may be framed in the form of a tariff structure formula or by any other method. In terms of section 30 sub section 2 and 3 of that the aforesaid the PUCSL could be statutory obliged to give effect to such policy. It is observed that neither the Sri Lanka Electricity Act nor the PUCSL Act No 35/2002 contain any provision to empowers the PUSL to vary or act in variants of such policy guidelines.
I know it well, as I was the one who drafted the PUCSL Act and it comes within the ambit of my ministry. I don’t know as to why this Chairman misleads the people. I’ve got to meet this Chairman as I have received several complaints against him and his statements. He says that he does not allow increasing the electricity tariffs. He has not been vested with any power in that connection. How could the country run the economy, if we can’t increase the electricity tariff?
The said chairman is the Chairman of the Trilliam Group too. He is the one who buys highest amount of electricity. Building diversified portfolio on luxury real estate. Trillium: As a developer we aim to create the most luxuriant living spaces, offices and hotels at sought after locations where our design and architecture are obtained through exceptional levels of expertise. How much electricity is consumed by luxurious apartments?
He has Trillium Residencies, Trillium Havelock Residencies, Trillium Residencies Colombo 07, Trillium Hotels Colombo 07, Trillium Residencies Negombo, Trillium Villas. So when the electricity prices increases his expenditure increases.
As the Chairman of the PUCSL he has conflict of interest with that decision, so he had to disassociate himself from that meeting. He didn’t do that. They want me to have an inquiry. But under the law, the power of inquiry lies with the Parliament. So I will leave for the members of the Parliament to decide what has to be done. I don’t think this type of things can go on. You are chairman of a public corporation; you must know how you should behave. You are not a monkey who dances into organ. If I had something such, even I would not be pleased with the electricity tariffs going up. I don’t like electricity bills going up at my home, but as I have none, it’s no problem to me. I saw that the Engineering Association viewed that the electricity bills did not need to be increased. I know the issue there. I’ve got the letter sent by State Minister Dilum Amunugama on those power plant projects none of which have yet been approved. They are 100mw off shore wind power plant in Norochchole at USD 321million, 500mw off shore wind power plant in Hambantota at USD 1.4 billion, 100mw solar power plant in Buffalo Island, Batticaloa at USD 68 million, 250mw wind power plant in Dutch Bay, Puttalam at USD 204 million. I would ask them first to pass these and then pass their resolution against the increase of electricity tariff.
We have to import coal for six months for Norochchole coal power plant as for six months we cannot import coal due to the condition of the sea there. In 2001, I stopped the project of the construction of this Norochcole power plant due to this six months issue. But when we were defeated, they convinced the successor government, that this was the suitable place to construct the coal power plant. Those persons who instructed the government now have retired. In 2002, when we got World Bank aids, we were given a report on electricity on unbundling. We did not implement it and we were later defeated in 2004. Then, these officers requested the government to bring the Act in 2007. Thereafter not a single electricity power plant could be set up. Following dialogues with India and Japan, the UNP government could come to agreements to get two LNG power plants. After we were defeated the successor government, without cancelling those agreements granted it to New Fortress company in USA. Thereafter, as they did not like New Fortress, they gave it back to Pakistan and China. So within the same premises, there were China, Pakistan, India, USA, Japan and only Russia was not there. It was wonderful that a world war did not ignited there as there were five main powers in the world. Now there is no LNG or anything here and now they ask me to solve this issue. If the Japanese and the Indians were allowed, the LNG could have been a reality. So I asked you members here not to query about it again.
Another matter is the Banks’ issue. If the people do not settle loans, the banks will have to auction their property. But the issue is that the people too have no money to by such property.
Therefore, we are discussing with the IMF to solve these issues. I think we all have to get together and think how this financial sector is to be lifted. We can blame each other. I can say I am not responsible. But the fact is that we can’t have the banks collapsing. So we have to come back to banking. That’s why; I want the Banking Oversight Committee.
Responding to a query made by parliamentarians as to who drove the country to such a bankruptcy and what is the punishment for them , President Ranil Wickremesinghe said that a Parliamentary Select Committee will be established on a resolution by the Parliament to look into it.
President Media Division (PMD)
Due to the bad weather, today (09) has been designated as a special holiday for all government and government-aided schools.
Below is the announcement issued by the Ministry of Education in this regard.
The budget presented to Parliament by President Ranil Wickramasinghe for the year 2023 has been passed with 43 majority votes.
The voting for the third reading of the budget was held this afternoon (08) and the number of votes received in favor of the budget was 123.
Only 80 votes were received against it. Two MPs abstained from voting.
Sri Lanka is about to miss the Central Bank Governor’s December and January dead line of receiving IMF executive board‘s approval for the island nation’s extended fund facility (EFF), informed sources said.
Central Bank Governor Nandalal Weerasinghe told a recent media conference if Sri Lanka misses the board approval in December it plans to appear before the IMF Board in January 2023 and is optimistic that it would shortly receive assurance from bilateral creditors including China and India.
Sri Lanka will miss the December deadline for securing an IMF loan, as the main bilateral debtor, China, was involved in the 20th Chinese Communist Party (CCP) National Congress, and had little time for holding debt restructuring talks with Colombo
China is ready to extend a loan facility to Sri Lanka enabling it to service huge debt of around US$ 7 billion but no word on debt restructure.
Following the utterance on December deadline by breaking his radio silence on market sensitive information he was clean bowled by a Chinaman’s googly as he misread China’ stance on debt restructuring, a veteran economic analyst with in-depth knowledge on IMF affairs said hilariously.
The country’s request for the US$2.9 billion loan package with relevant documents will be further delayed as Sri Lanka’s name is not included in agenda of the The International Monetary Fund’s summit on loan assistance is currently underway in Washington, D.C.
Its agenda is available on the fund’s official website, and it is notable that Sri Lanka which has , already signed the staff level agreement, is not included in the agenda of the ongoing loan assistance summit .
Eight countries including Barbados, Namibia, Rwanda, Armenia, Ecuador, Gambia, Benin State, Senegal, and Egypt who have requested to allow its representatives to attend the summit were included in it.
But Sri Lanka‘s name was not included in the list as a participant although it has reached a staff level agreement for EFF.
Under this set up Central Bank Governor Nandal Weerasinghe’s assertion of getting IMF executive board approval in January will not become a reality for the second time, several economic experts said.
He noted that Nandal should not jump the gun like his previous backfiring announcement of preemptive debt default by the country without the parliamentary approval.
IMF officials working on Sri Lanka’s bail out loan package have not announced any dead line on its executive Board approval.
Peter Breuer, Senior IMF Mission Chief for Sri Lanka noted that the initial disbursement under the Extended Fund Facility (EFF) is available at board approval, which is contingent on the implementation of prior actions by the authorities and the progress with discussions with creditors on restoring debt sustainability.
In a bid to scale up its dairy production to become self-sufficient, Sri Lanka has sought technical assistance from India’s National Dairy Development Board (NDDB) and market leader Amul, reviving a collaboration that the island attempted in the late 1990s, but failed to take forward.
Sri Lanka President Ranil Wickremasinghe has sought Indian assistance to make local dairy industry self-sufficient to reduce imports, his office said, as the subcontinent achieved nearly three decades back under a white revolution.
The government is committed of doubling local milk production by implementing short and medium-term plans and making Sri Lanka self-sufficient in milk in the long run through a targeted program.
Sri Lanka spends over US$300 million to import dairy products and the central bank restricted some of the dairy products because of dollar shortage early this year.
As a result, the imports of dairy products have declined more than 32 percent to 184.1 million rupees in the first nine months of this year. India has the World’s largest dairy herd as well as the top milk producer and consumer.
Sri Lanka has been in the process of achieving self-sufficiency in milk production, but has failed in the face of heavy competition by foreign milk powder producers and due to lack of consumer preference for liquid milk.
President Ranil Wickremesinghe has appointed a committee consisting of representatives of the public and private sectors of Sri Lanka to work with the multidisciplinary team of the National Livestock Development Board of India to prepare a short, medium and long-term plan to increase local milk production to reduce the country’s dependence on imported milk powder, the president’s office said in a statement.
“India’s National Livestock Development Board (NDDB) and the Indian Amul Milk Company have taken steps to provide the necessary technical support for the production of liquid milk in Sri Lanka,” the Presidential Secretariat said in a statement.
“It was discussed at length about doubling local milk production by implementing short and medium-term plans and making Sri Lanka self-sufficient in milk in the long run through a targeted program.”
Successive governments used many policy measures including legal actions against milk powder importers citing the presence of chemical ingredients
Great Britain has expressed its willingness to provide the necessary technical and practical support to Sri Lanka to implement the “Climate Prosperity Plan”.
The Climate Connection, we are bringing young people around the world together to address climate change. Discover how we can tackle climate change together, a senior official of finance ministry said.
Change can only happen when more young people are actively involved to collaborate and innovate across borders and generations.
In this way Sri Lanka can inspire others to make a difference and ensure COP is the most inclusive ever creating role models.
As part of the global climate change movement, the British Council in partnership with the Ministry of Education and with the support of the Climate Change Secretariat of the Ministry of the Environment is launching a climate connection challenge for schools island wide.
The Deputy High Commissioner of Great Britain to Sri Lanka, Lisa Whanstall said that Great Britain appreciates the efforts taken by Sri Lanka to address climate change and will work to provide the necessary technical and theoretical support in the future.
These remarks were made during a discussion held yesterday (07) between the President’s Senior Adviser on Climate Change Mr. Ruwan Wijewardene, and the British Deputy High Commissioner, at the Presidential Secretariat.
Mrs Whanstall also stated that she will provide the necessary support for the International University on Climate Change, which is planned to be built on the instructions of President Ranil Wickremesinghe.
Furthermore, the Deputy British High Commissioner praised Sri Lanka’s program for renewable energy and pointed out that it is a well-planned step for the future of the country.
Mr. Ruwan Wijewardene, presented the information about President Ranil Wickremesinghe’s upcoming programs regarding climate change and stated that the Act on Climate Change will be submitted to Parliament shortly.
In addition Mr. Wijewardene said that a climate change office will be established in Sri Lanka to investigate climate change in the region, and that the necessary solutions to address climate change that may occur will be developed.
He further said that the government has already focused on green hydrogen energy on the advice of President Ranil Wickremesinghe and the government has planned to further develop the potential for renewable energy in Sri Lanka.
They also discussed about the upcoming 75th Independence Day celebrations of Sri Lanka.
Andrew Price, Head of the British Government’s Prosperity Group, and Sajana Suriyarachchi, Director of Presidential Coordination, were also present at this event
The Asia Development Bank (ADB) is set to assist Sri Lanka by providing emergency financial support to ensure access to food and protect livelihoods for the poor and vulnerable.
From May 2022 to date, food security and livelihoods have continued to deteriorate, and the emergency is expected to worsen through 2022 and into 2023, a senior treasury official said.
These details and further foreign aid were revealed by President Ranil Wickremesinghe following the conclusion of the meeting at the Finance Ministry in Colombo recently.
ADB Vice President acknowledged and the steps being taken to contain the crisis and address its underlying causes, and supported the efforts to seek international assistance.
The ADB will be supporting the poor and vulnerable of Sri Lanka with direct financial support while boosting livelihood development activities and agricultural production and enhancing social protection systems. Finance ministry official is said.
In addition, through the Trade and Supply Chain Finance Program, ADB has provided guarantees to help critical international trade to continue.
“ADB is deeply concerned about the effects of the ongoing economic crisis on the poor and vulnerable sections, including women, of Sri Lankan society, particularly its long-term impact to people’s lives,” said Chen. Chen highlighted the need and called for deep, meaningful, and sustained structural reforms to address long-standing macroeconomic vulnerabilities, promote private sector development and to support renewable energy development.
Chen underscored the importance of strengthening macroeconomic management, improving governance, addressing structural constraints, and enhancing social protection system for sustained and inclusive recovery.
During his visit, Chen also met with Prime Minister Dinesh Gunawardena, Secretary to the Treasury Mahinda Siriwardana and Central Bank of Sri Lanka Governor Nandalal Weerasinghe.
At the invitation of Wickremesinghe, ADB Vice President participated at the high-level round table discussion on structural reform for economic recovery and sustainable growth along with representatives from the Asian Infrastructure Investment Bank, the International Monetary Fund and the World Bank.
The Government’s reform agenda was discussed along with proposed policy directions, reform priorities, other interventions, and future collaboration and support from international partners.
Chen will also witness the unloading of a 42,000 metric ton Muirate of Potash (MOP) fertilizer shipment at the Colombo Port, which is part of ADB’s emergency assistance to Sri Lanka. The fertilizer stock will be distributed to paddy farmers throughout the country to support agriculture production and address food insecurity.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 from the region.
The final vote on the budget presented for the year 2023 is scheduled to be held today (08) in Parliament.
The debate on the third reading of the budget will be held today until 05.00 pm, after which voting will be held.
In the second reading of the budget held on November 22, it was passed by a majority of 37 votes. That is 121 votes in favor of the budget and 84 votes against.
