- SLFP General Secretary Dayasiri Jayasekara MP says the Central Committee of the SLFP has suspended membership of 9 top members, including former President Chandrika Bandaranaike Kumaratunge until the disciplinary action against them is concluded.
- Minister of State for Transport Lasantha Alagiyawanna says a de-merit points system for traffic offences is to be introduced from January 2023: the driver’s license of those who get more than 24 de-merit points to be cancelled for a period to be determined.
- President’s Secretary Saman Ekanayake says the Government intends to resume negotiations on FTAs: asserts it’s the vision of President Wickremasinghe to integrate Sri Lanka with the global value chains and the largest economies in South and East Asia.
- Former CB Governor Ajith Nivard Cabraal says the true Economic Hit-men are those who announced that the country is bankrupt even while there were credible, expected inflows of USD 10.7 bn in early April 22: the announcement of “bankruptcy” was made by CB Governor Weerasinghe and Treasury Secretary Siriwardene.
- Sri Lanka Scouts Association confers title of “Chief Scout” on President Ranil Wickremesinghe.
- SLFP and SJB decide to vote against the 2nd reading of the Budget 2023.
- Census Department says headline inflation, as per the YoY change in the NCPI declines to 70.6% in October from 73.7% in September due to base effect: index value still at elevated levels showing that cost of living has not declined.
- Ministerial Consultative Committee on Water Supply considers proposal for another water tariff hike: also discusses new taxes proposed to be levied on bottled water.
- Chief Sanghanayake of the Ramanna Nikaya Ven. Omalpe Sobitha Thera says the Maha Sangha and Buddhists in Embilipitiya will not allow the Govt to implement the proposed project to cultivate 10,000 acres of Cannabis in Embilipitiya.
- Posts appear in social media showing pictures of several female teachers who say they have attended their respective schools in attire other than saree: previously, Education Minister Susil Premajayanth had firmly announced that there would be no change in the policy of teachers’ attire.
Sri Lanka Original Narrative Summary: 22/11
The fashionable “soft default” that sacrificed Sri Lanka’s sovereignty
When these two Central Bankers were appointed to their Jobs, the economic storm was already on us. They were both in their own way responsible for the crisis. Both had served for decades in the Central Bank. They had both spent considerable time at the Central Bank at the expense of the tax payers developing economic policies. Both these people are the highest paid government executives. They both earn in excess of Rs 1.5 Million a month with their tax paid by the tax payers.
First thing they both jointly did was to default and make Sri Lanka a bankrupt country. They sold Sri Lanka’s 75 years of independence for 64 million USD. All the credit lines virtually disappeared overnight as a result. Getting out of this bankruptcy mindset will take years. This action is perhaps the worst action that could have been taken by a top bureaucrat.
That too without the concurrence of parliament.
How this is possible in a civilized world is a big question? Some say they must be charged for treason for not getting parliament approval. Next they increased interest rates by 200%. Now that interest rates rates have climbed to about 32%, compared to the roughly 8% of a year ago, demand is tumbling because fewer Sri Lankans can afford to buy anything. To see a similar crash in demand you’d have to look back to the financial crisis.
Sri Lanka largely survived that crash. Most analysts say economic forecast for 2023. will be worse than 2022. Under their economic leadership. The Central Bank is on a collision course with a recession, and the Treasury will have a hard time driving the economy toward anything else. What ever the President says we won’t be able to escape the waning investor confidence.
The way the economy has been managed thus far since Nandalal and Siriwardana were appointed by a President who did not even understand demand and supply, shows the lack of understanding of the reality and their capacity to understand the ground situation and treat it with the correct economic tools. By keeping interest rates so high has virtually put thousands of entrepreneurs out of business. CBSL is yet to understand that inflation is driven by a shortage of foreign exchange and energy costs. Take those two out of the inflation equation, inflation will be less than 30%. Even a layman like me can understand this. Not these two? When you have bureaucrats who have not even run a boutique running the economy what can you expect? The bond rates have now reached fever pitch.
The bond traders are now licking their lips waiting for the interest rates to come down to buy their next car and apartment. They will even put to shame the previous scam. Ironically both these people (Nandalal and Siriwardana) were severely reprimanded for their ignorance in the bond scam in 2015. Recently when Siriwardana was asked why the Exporters are taxed at 30% (100% increase), he had replied it is because their associates are paying 30%. Exporters are no fools they will set up in another jurisdiction and park their money elsewhere. How stupid? Nandalal is acting like a rock star and Siriwardana is his make up manager. They are both darlings of some of the Western Ambassadors who keep propping them up, including a few opposition politicians for their survival . There is not much hope for our country with these two at the helm.
Even if the interest rates are brought down in a hurry as an economist pointed out. The economy has now been very badly bruised. Therefore it will take a month of Sundays, perhaps years to heal the deep wounds created by a short sighted policies propagated by inexperienced bureaucrats and half baked politicians.
Adolf
Java earthquake kills 162 and injures hundreds
An earthquake on the main Indonesian island of Java has killed at least 162 people and injured hundreds, regional governor Ridwan Kamil has said.
The 5.6 magnitude quake struck Cianjur town in West Java, at a shallow depth of 10km (six miles), according to US Geological Survey data.
Scores of people were taken to hospital, with many treated outside.
Rescuers were working into the night to try to save others thought to still be trapped under collapsed buildings.
The area where the quake struck is densely populated and prone to landslides, with poorly built houses reduced to rubble in many areas.
There are conflicting reports as to the exact numbers of deaths, and it is difficult to get a definitive figure as the search and rescue effort continues.
Earlier, Indonesia’s National Disaster Mitigation Agency (BNPB) said at least 62 people had died, according to the latest available data.
More than 13,000 people have been displaced Mr Java said, and the BNPB said over 2,200 homes have been damaged.
Earlier, Mr Kamil, the governor of West Java, said more than 700 people had been injured.
He said the numbers of injuries and fatalities were likely to increase because there were “a lot of people” still trapped at the scene.
Herman Suherman, the head of administration in Cianjur town, said most injuries were bone fractures sustained from people being trapped by debris in buildings.
“The ambulances keep on coming from the villages to the hospital,” he was quoted by AFP news agency as saying earlier in the day. “There are many families in villages that have not been evacuated.”
Many of the injured were treated outside in a hospital car park after the hospital was left without power for several hours following the quake, West Java’s governor said.
The tremor could also be felt in the capital Jakarta about 100km away, where people in high-rise buildings were evacuated.
Office workers rushed out of buildings in the civic and business district during the tremor, which started at 13:21 Western Indonesian time (WIT) on Monday, the agency said.
“I was working when the floor under me was shaking. I could feel the tremor clearly. I tried to do nothing to process what it was, but it became even stronger and lasted for some time,” lawyer Mayadita Waluyo told AFP.
An office worker named Ahmad Ridwan told news agency Reuters: “We are used to this [earthquakes] in Jakarta, but people were so nervous just now, so we also panicked.”
Earthquakes are common in Indonesia, which sits on the “ring of fire” area of tectonic activity in the Pacific. The country has a history of devastating earthquakes and tsunamis, with more than 2,000 killed in a 2018 Sulawesi quake.
BBC
Speaker says annual reports and performance reports will be distributed as e-copies
The annual reports and performance reports of Parliament will be submitted as e-copies and action will be taken to keep a limited number of hard copies of them as per MPs’ request, said Speaker Mahinda Yapa Abeywardena addressing the House today (21).
The move will be carried out in compliance with the decision taken at the meeting of the Committee on Parliamentary Affairs held on June 02, 2022.
Accordingly, MPs will be provided with soft copies even in the case of the progress reports submitted to Parliament by each Ministry / Institution and Statutory Bodies during the Committee Stage debate period on the 2023 Budget, based on the decisions taken during the meeting of the Committee on Parliamentary Affairs on September 29, the Speaker noted.
He went on saying that measures will also be taken to keep a few hard copies of the aforesaid Reports in the Chamber and the Library for the use of MPs.
MIAP
Govt’s attention to resume negotiations on FTA
Government’s intention was to resume the negotiations on free trade agreements said Secretary to the President Saman Ekanayake.
It is the vision of the President that Sri Lanka will integrate with the global value chains and with the largest economies in South Asia and East Asia and then expand to the east region linking to the Regional Comprehensive Economic Partnership (RCEP).
Further, the Secretary to the President invited private sector stakeholders to creatively engage in this development initiative as they are the ultimate beneficiaries.
He made these observations during an awareness session on the resumption of negotiations of free trade agreements held for Trade Chambers and Industry Advisory Committees at the Finance Ministry on November (16).
Secretary to the Treasury, Secretaries of the Ministries of Foreign Affairs, Trade and Industries, and the members of the National Trade Negotiation Committee also participated.
The contours of Global trade have been significantly changed in recent years by bringing regional and global production networks as driving factors of international trade where Sri Lanka has not yet been engaged to tap the potential. Both the growth of supply capacity and the expansion of market access are therefore, recognized as essential for revitalizing the domestic economy.
Towards this end, the government intends to operationalize the Free Trade Agreement with Singapore and has taken steps to resume the negotiations of free trade agreements with India, China and Thailand where foreign direct investment can be largely attracted to channel the benefits to the goods and services trade through the Investment Trade nexus.
A Trade Negotiation Committee has already been appointed by the Cabinet of Ministers to reinvigorate the negotiations and these agreements will ultimately pave the path to gaining membership of the Regional Comprehensive Economic Partnership (RCEP) which consists of 30% of the world’s GDP, trade and population.
During his remarks, Secretary to the Treasury Mahinda Siriwardhana emphasized the importance of leveraging the non-debt creating inflows and diversification of export products as well as markets.
He also mentioned the budget proposal- 2023 of establishing the International Trade Office (ITO) which will deal with all international trade negotiations in the future. The Treasury Secretary also emphasized the necessity of engagement with chambers and other stakeholders during the negotiation process.
The Secretary to the Ministry of Foreign Affairs Mrs. Aruni Wijewardana highlighted that foreign missions and diplomatic channels have fully prepared to facilitate these trade negotiations. According to the government plan, once the proposed institutional mechanism is properly established the Ministry of Foreign Affairs will bear the mandate of international trade negotiations.
The private sector representatives engaged in the session with great enthusiasm and stressed in detail the necessity of giving the highest consideration to their offensive and defensive interests.
They also made a request to focus on other non-tariff barriers such as certain quota restrictions, various issues on laboratory facilities for testing standards, not having mutual standards recognition agreements etc. that are faced by the exporters, through these agreements while removing duties on our exports.
During this kick-off session of the stakeholder consultations, the National Trade Negotiation Committee gave the assurance of conducting broad dialogue with the private sector throughout the negotiations through the responsible government institutions.
New Members appointed to CoPE, CoPA, CoPF
Speaker Mahinda Yapa Abeywardana two days ago (19) announced to the House that the following Members have been nominated by the Committee of Selection to serve in the Committee on Public Accounts (CoPA), Committee on Public Enterprises (CoPE) and the Committee on Public Finance (CoPF).
Accordingly;
- Prasanna Ranaweera and Velu Kumar have been appointed to the CoPA.
- Dayasiri Jayasekara and (Maj) Sudarshana Denipitiya has been appointed to the CoPE.
- (Dr.) Nalaka Godahewa and U.K. Sumith Udukumbura have been appointed to the CoPF.
MIAP
Sri Lanka deprives of Rs 30 billion from the coal tender bending
Sri Lanka’s coal procurement process has been found foul by the recent Government Auditor General Department’s inspection report prompting the parliamentary Committee on Public Finance (COPF) to recommend action against officials who oversaw a 2022-2025 coal tender for the Norochcholai coal power plant.
Making eight recommendations the Auditor General has reported that the tender to procure coal for the Norochcholai power plant from 2022 to 2025 did not follow the approved procurement process.
The process of coal procurement has now turned to a cumbersome affair for state authorities following the cancellation of the awarding of spot and term tender twice within less than two months this year first over legal issue and second failure of bidders to comply with guide lines.
The entry of the entry of two companies Browns /CMEC’s and a Dubai based firm submitting bids for the second tender has brought down the Coal pricing from $ 312per MT quoted by the first tender winner Suek AG/Black Sand to the lowest level of $ 250-290.
If the cabinet approved procurement committee has allowed to proceed the tender to one of these companies without cancelling the tender then the Lanka Coal (Pvt) Ltd would have been able to save a staggering Rs.30 billion, senior energy ministry official said.
Sri Lanka has managed to secure 240,000 MT of coal, which will be sufficient till early January next year as the full payments have been made for four shipments, which have been unloaded.
This will result in the shutdown of Norochchcolai Lakwijaya power plant after January next year due to no supply of coal the whole of next year compelling Ceylon Electricity Board to continue the ongoing power cut keeping the people in the dark for long hours further, Energy Ministry sources divulged.
However the Cabinet of Ministers at its meeting last Sunday 14 has approved the cancellation of the second spot and term tender for the procurement of Coal.
Power and Energy Minister Kanchana Wijesekera said the decision was taken on the recommendation of the technical committee and the procurement committee as the bidders had failed to meet the qualification criteria and failed to comply with the tender guidelines.
He disclosed that the procurement committee will call for Expressions of Interest from prospective suppliers and government to government proposals, on a long-term credit basis.
The requirements for the months of November and December will be fulfilled by extending last year’s term tender coal supplies.
A spot tender calling bids for 300,000MT (Supply for December only) was closed recently and it was also cancelled simply because the first term tender winner Black Sands who later withdrawn from the contract could not win this tender again due to lack of credit facilities disgruntled bidders alleged.
Government to assist Northern Province to go Green in a big way
Sri Lanka government has renewed its efforts to make a new development paradigm shift aimed for a post-pandemic economic recovery that is more sustainable and resilient to shocks and leaves no one behind.
This will be Green, Resilient and Inclusive Development, or GRID, which seeks to holistically address the related crises of climate change, COVID-19, and inequality, presidential secretariat high ranking official disclosed.
President Ranil Wickremasinghe who is committed to regain Sri Lanka has focused its attention on harnessing benefits of green economy for the people in the Northern Province as the contribution of the province to Sri Lanka’s Gross Domestic Product is still the lowest among all nine provinces.
One part of this province, Mannar Island, a dry and barren peninsula of about 125 km2 in the district of Mannar, is classified under Sri Lanka’s arid zone. Considering the unique character of climate and wind, it has great potential for renewable energy such as wind power and solar energy.
President Wickremesinghe who was in Mannar on an observation tour yesterday held discussions with government officials to establish a green hydrogen project, improved water management system, re-foresting projects, and to adding renewable energy potential to the main power grid in the Northern Province to mitigate the effects of global warming.
After observing the Tambapavani Wind Power Plant in Mannar today (20), the President issued these instructions during the discussion held with the Ceylon Electricity Board and the Renewable Energy Authority, to inspect its current progress and plans for the next ten years.
The President emphasized the importance of maximizing renewable energy projects and highlighted the importance of switching to green hydrogen projects, which is of great interest to the people.
He said that green hydrogen could be used for shipping. The Colombo, Hambantota, and Trincomalee ports will immediately be green ports. Introducing green hydrogen energy systems for fishing boats can bring about a unique change and can make a difference in the country’s economy and the northern economy.
The President also discussed the progress of seawater desalination plant, which is under construction in the Northern Province.
He noted that if climate change affects the water table, the water under the City Park can reduce. Therefore, in order to ensure the availability of water in the Northern Province, the construction of such plants, more tanks, mini hydro projects, and reforestation is vital.
He instructed the officials to identify irrigation canals, which can be converted to mini hydro projects immediately to overcome the issues of global warming.
The identification and research of future technologies and methods in the energy sector with the support of the Moratuwa and Peradeniya universities and the restoration and future use of the jetty under the Mannar Regional Development Plan were also discussed.
Opposition Leader to initiate new plan for youth (VIDEO)
The Samagi Jana Balawegaya (SJB) will lay the foundation to a new pattern that centres the Youth Generation for state administration, said Leader of the Opposition Sajith Premadasa, speaking to the Colombo District summit of ‘Samagi Vihidum Balaganaya’ yesterday (20).
“We will establish a youth advisory council. I would like to say that this youth advisory council will be the critical policy making body of a future Samagi Jana Balawegaya government,” Premadasa said.
He went on: “We will built a youth development fund, also a youth entrepreneur force. We will create a country that makes the dreams of the youth come true. I would like to say, whether politicians like it or not, we will lay the foundation to a new pattern that centres the youth for state administration.”
MIAP
OICs serving more than three years at same station to be given transfers
Police Officers in Charge (OIC) who are serving more than three years at the same station will be given transfers, said Public Security Minister Tiran Alles, revealing that about 1,300 applications have already received upon the calling in of applications for new OICs.
The Minister added that 1090 eligible applicants have already been selected and will be appointed as Police OICs soon.
Alles promised that the appointment of OICs is not politically tampered with and that each officer will be appointed to the most suitable station based on their qualifications.
MIAP