The first ever SportUnleash Throwers Championships, which will host some of the world-class competitions for the throwing events in the sport of track and field will take place on Saturday, the 12th of November from 9am to 4pm at the Torrington Grounds, Colombo 07.
This will feature Shot Put throw, Discus throw and Javelin throw for both boys and girls for age categories under 14, 16 and 18. Individuals and schools from around the island are invited to compete, and registrations are currently taking place online through its website www.sportunleashthrowers.com.
There will only be 24 competitors per event and a maximum of 12 competitors in a heat, out of which the best 8 will receive 6 throws with every throw being measured. The top eight performances will also receive certificates, and the top three best throwers will receive Gold, Silver, and Bronze Medals. Three Sri Lanka Athletics Association (SLAA) judges will be present at each event to officialize and verify when Sri Lankan records are broken.
Talavou Alailima, the Chairman of the Organizing Committee, said, “The SportUnleash Throwers Championships 2022 sets the foundation for a new culture of hosting competitions that are Athlete centric. If we, as a country, desire to realize any noteworthy achievement in the World Arena, every organized competition must ensure that the Athlete can deliver exceptional performances. The SportUnleash Thrower Championships will be an example of what such a competition would look like. We have set ourselves a high standard and plan to achieve them each time until there is a paradigm shift in the Sri Lanka Athletics sphere.”
The Organizing Committee Talavou Alailima – Chairman, and coaches Major Upali Wickramasinghe (Retd), Joy Danushka Perera, Jayakody, Fonseka, and Chethan Silva including coaches Mendis, Hemantha, Janaka in the Sub-Committee.
This inaugural initiative is by SportUnleash which strives to maximize the sports gifting of children and is well known for its Sports Talent Identification Report that exhibits a 360-degree comprehensive evaluation for children between the ages of 9 – 11.
The Consul General of Sri Lanka in Toronto, Thushara Rodrigo participated at the Annual Festivals of the Murugan Kovil in Scarborough on 30 October, 2022 at the invitation of the Chief Priest of the temple. The religious programme was attended by over 2000 devotees from the Sri Lankan Canadian Tamil community.
The Chief Priest in his address to the gathering recognized the representation of the Consulate General in the festival and commended the Consulate General for the continued engagement in the religious activities of the Kovil.
Consul General Rodrigo also met with a group of senior Tamils on 29 October 2022 at Scarborough Civic Center to discuss the importance of further strengthening the Consulate’s engagements with the Tamil community and requested them to actively participate in these efforts. They commended the efforts of the Consulate General and agreed to work collectively by encouraging the young people of their community to work with the Consulate General.
The work of two Sri Lankan designers Sonali Dharmawardhane and Sarita Rajendran was showcased in Singapore at an Afternoon Tea held at the Sri Lanka Residence on 29 October, 2022. The design showcase featured unique Sri Lankan batik evening wear, sarees and resort wear including silver jewellery and custom made clutches. The participants at the event included members of the Chinese Women’s Association of Singapore, the Diplomatic corps, representatives of travel and tour operators, and the media.
The event was attended by close to 80 invitees. A range of Sri Lankan goods including Cinnamon, Gems, Tea and Coconut products were on display and the guests were treated to delicious Sri Lankan cuisine. Speaking at the event, the High Commissioner of Sri Lanka to Singapore Sashikala Premawardhane, invited those present to trade, invest and travel to Sri Lanka and highlighted various aspects of Sri Lanka’s unique tourism offer.
President Ranil Wickremesinghe was the first speaker after President Xi Jinping to address, virtually, the well-attended and highly prestigious 5th China International Import Expo CIIE and the Hongqiao Economic Forum Opening Ceremony. In addition to the President of Sri Lanka, the opening ceremony was addressed by the Heads of State or Government of Mauritania, Mozambique, Belarus, Guyana, Solomon Islands, and the Director General of the World Trade Organisation, the Managing Director of the International Monetary Fund, and the Director General of the United Nations Industrial Development Organization.
Vice Premier Hu Chunghua moderated the opening session., the new Standing Committee member Li Qiang, who is tipped to succeed Li Keqiang as Premier, wrapped up the session. They were both physically present at the opening ceremony.
President Xi underlined the continued high-level opening up of China and its firm commitment to multilateralism. He emphasized his vision of a shared future, and common prosperity for humanity. High quality development will continue to be pursued by China in a dual circulation economy.
Speakers noted the growth of exports to China. China will import ten trillion dollars worth of goods in the next few years creating vast opportunities for all countries. China, even today, is the largest exporter of goods in the world. It is the second largest importer of goods and services.
President Ranil Wickremesinghe emphasised the importance of China as a destination for Sri Lankan exports, the most important source of imports, and a significant source of FDI and tourists.
Ambassador Dr. Palitha Kohona represented Sri Lanka at the ceremony.
The Consul General of Sri Lanka in Karachi Jagath Abeywarna met with the newly elected Senior Vice-Chairman Sohail Nisar and the members of the Pakistan Yarn Merchants Association on 02 November, 2022 at its head office in Karachi to promote collaboration between the two countries in the field of yarn materials.
The Pakistan Yarn Merchants Association was established in 1960 and has interests in yarn of all grades including cotton & mercerised yarn, silk & rayon yarn, woolen yarn, staple fibre yarn and all other synthetic yarns.
The Association has in its fold more than 600 leading yarn companies in the country.
Sri Lanka exported around US$ 34 Mn. yarn materials in 2021 to the world including US$ 0.7 Mn. to Pakistan while it imported US$ 525 Mn. worth of yarn from the world including US$ 22 Mn. of yarn from Pakistan in the same year.
The senior Vice-Chairman and their members showed their interest in collaborations with the Sri Lanka private sector companies and as a first step, the Association agreed to have a webinar with the Sri Lankan companies in the near future.
Colombo, 07 November 2022: The United Nations (UN) team in Sri Lanka and non-governmental organizations have today revised and extended their joint Humanitarian Needs and Priorities (HNP) Plan, which aims to provide life-saving assistance to 3.4 million people amid Sri Lanka’s worst economic crisis since independence.
Since June, the HNP has been responding to the Government’s request for UN-backed multi-sector support for Sri Lanka’s debt and food and medicine shortages. Governments and donor agencies have helped the humanitarian community reach over 1 million of the country’s most vulnerable people with cash, food, school meals, medicine, protection, and livelihood support. The HNP—aligned with appeals from other UN agencies—has raised US $79 million for Sri Lanka thanks to landmark support from the U.S and USAID, Australia, Japan including JICA, the UN Central Emergency Relief Fund (CERF), as well as Canada, Denmark, Norway, New Zealand, Italy, EU, Switzerland, France, and with additional support from the UK, Germany, Thailand, Sweden, Georgia, Latter Day Saint Charities and private individuals and organizations including Brandix Apparels Ltd, Hemas Holdings PLC, Dilmah Ceylon Tea Company PLC, Daraz (Alibaba Group), Amana Bank PLC and the Citi Foundation. The HNP’s revision extends the plan through 2022 and requires US $70 million in additional funds to reach a total of US $149.7 million.
“We are immensely appreciative of the solidarity the international community has shown with the people of Sri Lanka, including through their generous contributions to the HNP. This solidarity must be sustained if we are to insulate the most at-risk people from the impacts of the ongoing crisis,” said UN Resident Coordinator in Sri Lanka, Hanaa Singer-Hamdy.
In response to the humanitarian community’s updated estimates on the number of people in need across all 25 of Sri Lanka’s districts, the extended appeal will improve nutrition for children, pregnant women, and breastfeeding mothers; secure safe drinking water; and protect vulnerable farming and fishing households. Ms. Singer-Hamdy stressed the importance of strengthening local food production and delivery. “At this point, safeguarding livelihoods is safeguarding lives in Sri Lanka,” she said.
Food insecurity in Sri Lanka has increased dramatically due to two consecutive seasons of poor harvests, foreign exchange shortages, and reduced household purchasing power. With a poor harvest season forecast for 2023 and food inflation of 85.6 per cent in October 2022, many Sri Lankans are struggling. Twenty-eight per cent of the population—or 6.3 million people—face moderate-to-severe acute food insecurity. According to the World Bank’s 2022 Development Update, the poverty rate rose from 13.1 percent to 25.6 percent between 2021 and 2022.
The revised HNP complements existing emergency operations carried out by the UN and humanitarian partners. Among its targets are immediate food assistance for 2.4 million vulnerable and food-insecure people; provision of support and fertilizers for 1.5 million farmers and fishers to revive food systems that have been severely disrupted.
The appeal also seeks to provide nutrition support for 2.1 million people, including pregnant women and schoolchildren; safe drinking water for over 900,000 people; and essential medicines and healthcare, including sexual and reproductive healthcare, for 867,000 people. It will enable protection services to continue for vulnerable women and children at risk of violence.
The government’s conduct by which human rights are disregarded and repression is promoted can no longer be tolerated, said Rev. Fr. Dr. Cyril Gamini, delivering a special statement by the Archbishop of Colombo, His Eminence Malcolm Cardinal Ranjith, at a briefing called in today (08).
The Cardinal’s statement focused on the current economic crisis of the country and the state-sponsored repression unleashed which, according to him, have reached to a point of intolerance.
Condemning the arbitrary and unfair use of the controversial Prevention of Terrorism Act (PTA) to arrest peaceful protesters and social activists and leaders and the unamenable manner by which the country is governed, the Archbishop vehemently raises concerns on the arrest and detention of Wasantha Mudalige, the Convener of the Inter-University Students’ Federation (IUSF) and Ven. Galwewa Siridhamma Thero, the Convener of the Inter-University Bhikku Federation, Fr. Gamini noted.
Fr. Gamini further revealed that the Archbishop is urging the government to immediately publicise all volumes of the report issued by the Presidential Commission of Inquiry appointed to probe the Easter Sunday Carnage and implement its recommendations.
Developing countries are the worst affected by rising emissions from the industrialised world, and must be compensated – President Ranil Wickremesinghe emphasises at COP 27
President Ranil Wickremesinghe addressing the COP 27 Climate Change Conference in Sharm El-Sheikh, Egypt said that unbridled industrialisation of the developed countries is the root cause of climate change, leaving the poor to suffer the consequences. He said that the problems facing poor countries are augmented due to the absence of adequate funding.
As a result, these countries are facing double jeopardy – struggling to develop economically while fighting to protect the living standards of their populations.
Therefore, President Wickremesinghe said that the developed countries must deliver on their pledge in Glasgow – by doubling their funding to compensate the developing countries for loss and damage.
Accordingly, he said that as proposed by the Climate Vulnerable Forum, commissioning a Special Report on this aspect to strengthen international awareness for future responses would be appropriate.
President Wickremesinghe thus proposed that before COP 28 in Dubai, like-minded nations should meet at Ministerial Level to discuss the way forward on all aspects of climate finance.
He also noted that this should be followed with a meeting of the Heads of Government of these countries on the margins of COP 28 to display a collective frame of mind to stave off the calamity.
Following is the full speech delivered by President Ranil Wickremesinghe at the Cop 27 Climate Change Summit;
“The salubrious environs of the green city of Sharm El-Sheikh will undoubtedly inspire our discussions at COP 27 to a successful conclusion. I sincerely thank the Government of Egypt for your warm welcome and hospitality.
Sri Lanka is replete with biodiversity and has consistently addressed the challenges of climate change. Let me record the action of Sri Lanka in this regard:
Sri Lanka
• Commenced the process of reducing carbon emissions by 14.5% by 2030
• Initiated Marine Spatial Planning
• Recently established a Climate Office
• Spearheaded the UN declaration of the 1st March, as World Sea Grass Day
Sri Lanka is
• Employing the National Policy for Conservation and Sustainable Utilization of Mangrove Ecosystems
• Implementing the Commonwealth Pilot project for Climate and Ocean Risk Vulnerability
• Led the Commonwealth Blue Charter Action Group on Mangrove Ecosystems and Livelihoods
Sri Lanka
• Will not increase further energy capacity via coal power
• Will phase out fossil fuel subsidies
• Will aim for 70% of renewable energy for electricity generation by 2030
• Will join the recent Global Methane pledge made in Washington
Yet, for climate action to be successful, wide-ranging measures to complement the UNFCC and Paris Agreement must be pursued.
The lack of capacity is the biggest obstacle to the implementation of Climate Action plans. Therefore, capacity building is vital in this regard.
To overcome this obstacle, we propose to establish an International Climate Change University in Sri Lanka, with an ancillary institution in Maldives, which would be the first of its type.
This seat of learning can be a trans-disciplinary global centre for green and blue studies – for scientists, environmentalists, researchers, policymakers, development practitioners, and of course, students the world over, to interchange knowledge transcending national and disciplinary boundaries.
The envisaged Climate Change University will offer both short-term courses and postgraduate academic awards to build capabilities for mitigating and adapting to climate change.
The University will also expedite the skills of the new generations to deliver the political, economic, social, cultural and digital transformations required to prevent a 1.5-degree world.
It will be the vehicle to enlighten domestic climate change challenges and prospects.
The collaboration of multilateral institutions and organizations such as the Commonwealth, World Bank and the ADB amongst others, will be sought for the establishment of this institution of higher learning – making it a multi-stakeholder partnership transcending – national boundaries.
I hope Sri Lanka’s proposal will receive extensive support and endorsement from the international community.
Since the prescriptions for addressing climate change have to be dispensed in the global domain, we will meet again next year, charged with high hopes.
However, the chequered implementation of previous decisions, including those of COP 26 is extremely disheartening.
Regrettably, the ground reality is that the fossil fuel-based industrialized countries of G7 and G20 who have been the main promoters of green hydrogen are now backtracking to use of fossil fuel.
In the last year, Carbon Dioxide emissions increased by 2bn metric tonnes – from 34.3bn to 36.3bn metric tonnes.
Such double standards are unacceptable. Developed nations should be given leadership to overcome climate challenges rather than abdicating their responsibilities.
It is no secret that climate financing has missed the target.
It is ironic that the 100 bn dollars pledged annually, have not been available in the coffers to finance climate challenges – as many developed nations deem it fit to renege on their climate financing contributions.
These countries who are also on both sides of the Ukraine war seem to have no qualms about spending for a war which will finally exceed $350bn. A conflict waged purportedly for the security interests of the combatants.
The only security at stake is food insecurity, acerbated to levels not experienced before the war. Many living both in the developed and developing world are outside the scope of three meals a day.
It is estimated that between 30 to 40 million people are being driven into hunger, especially in Africa. This war has also resulted in the upward spiralling cost of living, and shortages of oil and gas supplies, and it has brought the fight against hunger to our homes.
Expectedly, it has led to the curtailing of much-required climate finance pledged by these very same countries.
The issue we have is not finding the party responsible for the war, but the party that will end the war.
Why do we need this funding? It is a known fact that the practice of colonialism transferred the rich resources of Asia and Africa to Europe and was used to industrialize their countries. We became poor from this plunder.
The unbridled industrialization of the developed economy is also the root cause of climate change, the consequences of which, we the poor countries are forced to suffer. Our problems are augmented due to the absence of adequate funding. Therefore, those in the South are facing double jeopardy – struggling to develop economically while fighting to protect the living standards of our populations.
It is therefore imperative that the developed countries deliver on their pledge in Glasgow – by doubling their funding. Adding insult to injury, damages caused by extreme weather conditions are increasing, and their impacts are exceedingly costly.
Developing countries which are the worst affected by the rise in emissions from the industrialized world, need to be compensated for loss and damage.
While the issue of loss and damage is now included in our formal agenda, we have to ensure that the emitters contribute financially to those affected. As proposed by the Climate Vulnerable Forum, commissioning a Special Report on this aspect to strengthen international awareness for future responses would be appropriate.
Considering the failure of the developed world in bringing about the much-discussed relief, it is proposed that before we get to Dubai for COP 28, like-minded nations should meet at Ministerial Level to discuss the way forward on all aspects of climate finance.
This should be followed with a meeting of the Heads of Government of these countries on the margins of COP 28 to display a collective frame of mind to stave off the calamity.
In conclusion, let me recall the UN Secretary-General’s recent words, “The choice is between collective action or collective suicide”.
The vacuum created due to inaction now requires the global display of sustained political will through dynamic action and constructive cooperation on the part of like-minded countries to prevent this catastrophe.
President Ranil Wickremesinghe met Na Kyung- Won, Special Presidential Envoy for Climate and Environment and Head of the Korean delegation, on the sideline of COP 27 in Egypt yesterday (07).
While appreciating the efforts taken by Sri Lanka to address the challenges of Climate change, Ms. Na Kyung- Won also commended Sri Lanka for the measures taken to reduce carbon emissions despite the country already having a low carbon emission rate.
President Wickremesinghe stressed that capacity building is vital for climate action to be successful. In this perspective, it is his desire to establish an International Climate Change University in Sri Lanka, a higher learning, multi stakeholder institution which strengthens people’s capacities. The President said that he has already held discussion with the Commonwealth Secretariat and the ADB in this regard and he looks forward to receiving the support and endorsement of the international community.
Former Central Bank Governor Ajith Nivard Cabraal in reference to Daily FT’s short Editorial titled “Getting away with Economic Crimes,” published on 31 October 2022 (https://www.ft.lk/ft_view__editorial/Getting-away-with-economic-crimes/58-741478) said he strongly objects to the “vituperative and damaging Editorial.” Following is the full text of Cabraal’s reply.
In your Editorial, you have referred to a payment of “$ 6.5 million to Pakistani American political donor Imaad Zuberi without the approval of the Cabinet Ministers and as a result committed criminal breach of trust”. In this regard, I wish to state that the payment of $ 6.5 million was made by the Government in respect of a Communication Program of the Government, and that the Central Bank effected the payment on the official written instructions of the appropriate government authority, while following the respective payment protocols and procedures. Therefore, there has been no procedural or other violation in making these payments.
Re. your allegation that “Cabraal and those who caused the outright economic collapse should be investigated and prosecuted by the State”, I set out below the manner in which “the economy was handled” in relation to the matters referred to, by you. In this context, as stated in several Cabinet memoranda, Sri Lanka’s debt challenges were mainly caused by the rapid and irresponsible forex borrowing spree whereby the forex debt of the country ballooned by a massive 65% from $ 23.4 b to $ 38.7 b in five years – 2015 to 2019. During that period, the Government borrowed $ 10 b (net) in International Sovereign Bonds (ISBs) often at interest rates of over 7.0%, of which $ 6.9 b in ISBs was issued in a blitz of 15 months from April 2018 to June 2019. The Government had further borrowed $ 2.0 b as a “term loan” from China, and received $ 1.1 b as sales proceeds for the sale of the Hambantota Port. When considering that the Forex Reserve by end-2014 was $ 8.2 b, calculations indicate that if the Forex Reserve had been prudently managed, the authorities should have had a Forex Reserve of at least $ 32.7 b instead of the mere $ 7.6 b by end-2019.
The ISB settlement of $ 500 m on 18 January 2022
The ISB settlement of $ 500 m on 18 January 2022 was a Parliament-approved budgeted debt repayment that accounted for about 7% of the Government’s forex debt-servicing and about 2.3% of the total debt-servicing in 2022. In that regard, some persons have stated that Sri Lanka should not have serviced its sovereign forex debt, particularly the maturing ISB of $ 500 m and had even claimed that the settlement of the maturing ISB was done at the behest of top officials and politicians including this writer in order to enable certain unspecified investors to make undue profits. In their haste to place blame on specific officials, they had even ignored the fact that about 16% out of the total ISBs outstanding in January 2022 of $ 13,000 m was reportedly being held mainly by Sri Lankan banks and other investors, and that a default by the Government of these ISBs would lead to the serious destabilisation of the entire Sri Lankan banking system.
Accordingly, while refuting the preposterous claim that the country was facing bankruptcy as a result of the settlement of the ISB, it must be categorically stated that Sri Lanka actually averted bankruptcy by settling the ISB. In any event, it must be noted that a decision to default by a country is so serious that it should properly receive the formal prior approval of the Monetary Board of the Central Bank, the Attorney General, the Cabinet of Ministers, as well as Parliament, and not be carried out according to the whims of a few officials.
As per the Monetary Law Act, the Central Bank’s Public Debt Department manages the public debt as the Agent of the Government. It is therefore the primary responsibility of the Government, to borrow and to repay the Government Debt. It should therefore be clear that until a decision to default is taken by the Government, it is the bounden duty of the Borrower and its Agent to honour the repayments of Government debts falling due.
It must also be noted that the repayment exercise is dependent not just upon the quantum of the available funds in hand, but on the funds inflows and outflows, as well as the roll-over of debt, which is dependent upon public confidence. Therefore, it is vital that the authorities ensure public confidence in the financial system and carefully arrange the cash flows. If the only criteria for debt repayment was the availability of liquid funds in possession, it would have not been possible to manage the debt repayment programs of the Government over the past years.
The controversial “debt default” announcement on 12 April 2022 pushed the country into default, and it is seriously suspicious as to why that was done when the “pipeline of inflows” at that time amounted to $ 10.7 b, a list of which has been submitted to the Supreme Court via my “affidavit” dated 15 July 2022 in connection with a Fundamental Rights petition. Accordingly, there was absolutely no necessity for the hurried, inexplicable and highly suspicious “debt default” of 12 April 2022, which was announced without the necessary formal approvals.
See References:
Sri Lanka in talks with China for $ 2.5 billion credit support, China official says – Reuters on 21st March 2022
Negotiations were also at an advanced stage on “lines of credit” of $ 1 b for goods and $ 500 m for oil from India, and $ 500 m (approximately) from the Reserve Bank of India through the postponement of Asian Clearing Union settlements.
The sudden “default” announcement of 12 April 2022 completely disrupted the above expected inflows, while the non-payment of the July 2022 $ 1,000 m ISB led to a “cross-default” fall-out as well.
Since December 2020, then CB Governors Professor W.D. Lakshman and this writer as well as former Treasury Secretary S.R. Attygalle had secured and arranged the required forex inflows to settle or roll-over maturing debt. This was done while allocating forex to buy fuel, coal, medicine, gas, foodstuffs, and to clear the containers of imports, even though there were a few delays due to exporters and expatriates holding back forex receipts and importers attempting to stockpile imported goods. The Government also serviced all maturing forex debts in the first quarter totalling $ 3.1 b. Thereafter, in the next 3 quarters, forex debt servicing was comparatively easier, at $ 3.9 b only, of which, the settlement in the second quarter was around $ 1.0 billion only.
The settlement and expected roll-over of those amounts were comfortably manageable with the inflows expected from the 25% export conversions to be mandatorily sold to the Central Bank by the commercial banks, the roll-over of maturing SLDBs and FCBU loans being arranged as in the past, and the expected substantial new cash inflows from China, India, “Green” Bonds and other non-debt sources.
Default repercussions
When sovereign forex loans are defaulted, the repercussions are frightful. The credibility of the country is lost. Investors shun that country. The defaulting country cannot obtain new forex loans thereafter. Access to International Bond Markets is lost. The banking system is placed under pressure. Banks face serious difficulties when opening letters of credit and doing forex transactions. Forex loans and investments are halted. Local firms doing business overseas face hardships. Most forex-funded infrastructure projects stop. Foreign Direct Investors adopt a “wait and see” attitude. Small and medium sized import-based businesses and entrepreneurs face the risk of collapse. Hundreds of thousands of jobs and livelihoods are in jeopardy. Inflation and interest rates rise. The Government is compelled to sell valuable state assets. Forex creditors institute legal action to recover their dues. The Government incurs huge litigation costs and experiences “black-listing”.
If local debt is restructured, it could lead to serious socio-economic consequences. Issue of Treasury Bills to the Central Bank increases. The local currency loses value. The Government’s local currency payments, including salary and pension payments, are stressed. The country’s foreign policy is compromised. In a nutshell, grievous prejudice is caused to the economy and the country. Sadly, almost all the above outcomes are being experienced in Sri Lanka already.
Further, if a “hair-cut” of 40% (as being mentioned in Government circles) is applied on the ISBs, that would mean that the nine Sri Lankan banks who reportedly hold around $1,750 million of Sri Lanka’s ISBs collectively would stand to suffer a loss of 40% of that value Rupees, which works out to over Rs. 250 billion. According to Central Bank data, the total Domestic Debt at end September 2022 was around Rs. 13,900 billion. As is well known, the bulk of this Debt is held by the Employees Provident Fund, Employees Trust Fund, Bank of Ceylon, People’s Bank, National Savings Bank, private banks and insurance companies. In that background, if the IMF and Debt Restructuring “Advisors” insist on a “hair-cut” of even 20% of the Domestic Debt to fulfil the IMF’s “Debt Sustainability” requirements, that would amount to a huge write-off of over Rs. 2,750 billion! Obviously, that would be a massive shock that the Sri Lankan banking and financial sector would not be able to afford or withstand.
Artificial exchange and burning the precious foreign currency reserve
Your Editorial states the economic collapse was precipitated “in no small measure by the Central Bank’s highly questionable decisions to maintain an artificial exchange and burning the precious foreign currency reserves”. In response to that allegation, it must be categorically stated that not one single dollar was used (or burnt as alleged by you) by the Monetary Board “to maintain an artificial exchange” during my second term of just over six months. In direct contrast, at the Government’s request, approximately $ 1.8 b was supplied by the Central Bank to purchase food, fuel, medicine, coal, gas, etc. that was urgently needed, while about $ 2.0 b was provided to keep the BOC and People’s Bank solvent. Further, in relation to the Monetary Board’s decision to maintain a “stable currency” during that same period, it must be stated that if the Rupee had been “floated” as demanded by some opposition MPs and others while the COVID pandemic was at its peak, and the Rupee had depreciated to around Rs. 300 or Rs. 350 per $ at that time, that would have resulted in a serious panic and instability. If so, these same politicians and others would have then taken a completely different attitude and blamed the Monetary Board saying that the decision to “float” was reckless.
Even though many don’t seem to be ready to acknowledge, Sri Lanka had secured forex “bridging finance” inflows of around $ 5 b from 2020 to end-March 2022 from bi-lateral sources, without any tough conditions or burdens being imposed on the people. Of that sum, about $ 3.8 b was obtained during my brief 6½ months as Governor.
If, as some argue today, Sri Lanka had sought IMF assistance without obtaining such funding, it is likely that not a single dollar would have been forthcoming from the IMF or from any other source during those 6½ months. In fact, by 31 October 2022, it’s more than 7½ months after seeking IMF assistance, and Sri Lanka has not received any funding whatsoever from the IMF, or from any other bilateral lender! Needless to say, Sri Lanka’s plight would have been disastrous if that had happened, and if so, everyone would have probably found fault with the authorities and demanded to know as to why the Government had sought an IMF program for the 17th time, instead of securing funds from bi-lateral sources.
Accountability
You have stated: “A handful of individuals are responsible for the economic collapse of the country. They must be held accountable for the misery they have caused. A thorough investigation into their corruption, incompetence, dereliction of duty and negligence should be carried out immediately”. In assessing such “incompetence, dereliction of duty and negligence”, I am sure the International Monetary Fund (IMF) Article IV statement of 2 March 2022 could serve as a very useful reference point. In that report, the IMF categorically states Sri Lanka had “inadequate external buffers” and was “vulnerable” at the “eve of the pandemic”.
As you know, the new Government took office around end-2019, which then means the Sri Lankan economy was already “vulnerable” and with “inadequate external buffers” at the time it took office. Such “vulnerability” had therefore obviously arisen mainly through the rapid accumulation of ISBs and equally rapid dissipation of forex reserves during the tenure of Finance Minister Mangala Samaraweera, Governor Indrajith Coomaraswamy and Senior Deputy Governor Nandalal Weerasinghe. Hence, a thorough investigation is warranted at which the latter two officials could explain how and what caused the Sri Lankan economy to be so “vulnerable” by end 2019.
The IMF Article IV Report of 2 March 2022 also specifically states that “Sri Lanka lost access to the international sovereign bond market at the onset of the pandemic”. That meant that there were no opportunities to issue new ISBs in the wake of COVID-driven inactivity in the global bond markets by the time the new Government took office. That fact too, has been ignored by many critics when assigning blame to the post-2019 administration.
In this context, I have, on 5 September 2022 urged the President, to initiate an impartial High-level Inquiry to identify those persons who are responsible for the heinous economic crime of leading the country towards financial vulnerability and thereafter announcing an unwarranted “bankruptcy”, since such persons definitely “must face justice” as urged by you.
In your Editorial, you have referred to a payment of “$ 6.5 million to Pakistani American political donor Imaad Zuberi without the approval of the Cabinet Ministers and as a result committed criminal breach of trust”. In this regard, I wish to state that the payment of $ 6.5 million was made by the Government in respect of a Communication Program of the Government, and that the Central Bank effected the payment on the official written instructions of the appropriate government authority, while following the respective payment protocols and procedures. Therefore, there has been no procedural or other violation in making these payments.
