By Shamindra Ferdinando

The Government Medical Officers’ Forum (GMOF) yesterday (13) pointed out that India couldn’t absolve itself of the responsibility for the alleged supply of low quality Indian medicines to Sri Lanka under the USD 1 bn credit line opened over a year ago. GMOF President Dr. Rukshan Bellana said so, referring to the third death due to low quality drugs reported on Wednesday (12) from the Peradeniya Teaching Hospital.

“We appreciate the Indian credit line that allowed Sri Lanka to procure a range of urgently needed medicines at a time when the government was not able to meet the basic requirements of the public but there cannot be an excuse for deaths and complications caused by Indian medicines,” Dr. Bellana said.

Responding to The Island queries, Dr. Bellana said that he sincerely hoped the government would take up this matter at the highest level. Pointing out that President Ranil Wickremesinghe was scheduled to visit New Delhi soon, Dr. Bellana said that the President should take up the issue without any further delay.

The first death caused by substandard drugs was reported from the Peradeniya Hospital on June 16. Dr. Bellana said that many had expressed concern about the death of a patient at the Peradeniya Teaching Hospital who died after being given the Indian-manufactured anaesthetic Bupivacaine.

Dr. Bellana said trouble had started in May 2023, when those who had been administered Indian medicines after eye surgery at the Nuwara Eliya hospital complained about visual impairment. The doctors cited the “presence of germs” in the eye medication as a reason for their patients’ condition. Health authorities initiated an inquiry and withdrew the drug.

Dr. Bellana said that Transparency International Sri Lanka had filed a fundamental rights petition in the Supreme Court, challenging the decision of the Cabinet and health authorities to procure drugs from unregistered suppliers.

The petition has further questioned the national drug regulator’s role in providing a waiver of registration to allow for the swift import of essential drugs. Gujarat-based Savorite Pharmaceuticals (Pvt) Limited and Chennai-based Kausikh Therapeutics have been named as respondents. Early in April this year the Supreme Court granted leave to proceed in the case and suspended imports from these companies.

Dr. Bellana, who is the Deputy Director of the National Hospital, Colombo, said that perhaps the World Health Organization (WHO), too, could look into the issue. According to him, leading Indian media groups have addressed the controversy over the quality of Indian medicine as well as the continuing shortage of essential medicines and equipment.

Dr. Bellana said that he intended to seek a meeting with Indian High Commission authorities to make representations. He asked whether corrupt elements (local agents) here with the help of interested parties in India were making money at the expense of a bankrupt country. Dr. Bellana Health Minister Keheliya Rambukwella and Director General of Health Services Dr. Asela Gunawardena owed an explanation to the public.

ISLAND LK

The Sri Lankan Rupee experienced a depreciation against the US Dollar at commercial banks in Sri Lanka today (July 14) compared to the previous day.

At Peoples Bank, the buying rate for the US Dollar rose from 307.53 to 311.42, while the selling rate increased from Rs. 322 to 326.

According to Commercial Bank, the buying rate for the US Dollar increased from Rs. 306.59 to Rs. 311, and the selling rate rose from Rs. 322 to 326.

At Sampath Bank, the buying rate for the US Dollar increased from Rs. 307 to 309, while the selling rate rose from Rs. 322 to 324.

The depreciation of the Sri Lankan Rupee against the US Dollar reflects the fluctuating exchange rates in the currency market, which can be influenced by various economic factors and market conditions. It is important for individuals and businesses to stay informed about these currency fluctuations when engaging in foreign exchange transactions or planning financial activities involving foreign currencies.

The untimely demise of a young woman at the Peradeniya Teaching Hospital has raised suspicions of an allergic reaction to medication administered during her treatment. The hospital’s Director, Dr. Arjuna Thilakaratne, addressed the tragic incident involving 21-year-old Chamodi Sandeepani, who passed away while undergoing treatment for indigestion problems. Dr. Thilakaratne stated that the drug in question, ‘Ceftriaxone,’ is an antibiotic typically administered in 2mg doses once a day.

“While it is challenging to definitively attribute the cause of death to the drug, it appears to be an allergic reaction. It is worth noting that we have administered 2,700 doses of Ceftriaxone to other patients without incident,” explained Dr. Thilakaratne.

Following a magisterial inquiry into the circumstances surrounding the young girl’s mysterious death, the Kandy Magistrate issued an open verdict. As part of the verdict, the Magistrate ordered the girl’s body specimens to be sent to the Government Analyst for further examination and the production of a detailed report.

The investigation aims to shed light on the possible connection between the medication and the adverse reaction that led to the tragic outcome. Authorities are diligently examining the evidence to determine the precise cause of the allergic reaction and subsequent demise, seeking to prevent similar incidents in the future.

The Constitutional Council is set to hold a special meeting today (July 14) under the chairmanship of Speaker Mahinda Yapa Abeywardena. The meeting will take place at 9:30 a.m. at the parliamentary complex, focusing on important constitutional matters.

In related news, the Committee on Parliamentary Business has announced that the parliament will convene from July 18 to July 21. During these sessions, a designated one-hour slot from 9:30 a.m. to 10:30 a.m. will be allocated daily for Questions for Oral Answers.

On Tuesday (July 18), the parliament will meet at 9:30 a.m. The Resolution under the Customs Ordinance published in the Gazette Extraordinary No. 2325/07 and the Regulations under the Imports and Exports (Control) Act published in the Gazette Extraordinary No. 2335/26 will be the topic of debate from 10:30 a.m. to 1:30 p.m. Subsequently, from 1:30 p.m. to 5:30 p.m., the Opposition will initiate the Adjournment Debate on the Difficulties Faced by the Palestinian People.

On Wednesday (July 19), from 10:30 a.m. to 5:00 p.m., the Committee Stage of the Anti-Corruption Bill and the Assistance to and Protection of Victims of Crime and Witnesses Bill will be addressed. Following that, the government business will proceed with the Second Reading of the Private Member’s Bill Heart to Heart Trust Fund (Incorporation) Bill.

Thursday (July 20) will feature the Second Reading of the Central Bank of Sri Lanka Bill from 10:30 a.m. to 5:00 p.m., followed by the approval without debate of the Resolution under the Essential Public Services Act. From 5:00 p.m. to 5:30 p.m., the government will present a Motion during the Adjournment Time.

On Friday (July 21), the parliament will convene from 10:30 a.m. to 5:00 p.m., focusing on the Second Reading of the Banking (Special Provisions) Bill. The day will conclude with the allotted time from 5:00 p.m. to 5:30 p.m. for Questions during the Adjournment Time.

1. Rotterdam University Senior Lecturer and Economist Dr Howard Nicholas says Sri Lanka’s commercial borrowing of over USD 14 billion from the International Bond Market from 2015 to 2019 had a severe impact on debt sustainability.
2. LKR and interest rates on topsy-turvy and uncertain paths: LKR loses 2.4% of value in just 20 days to reach Rs.321.88 per USD by 13th July: Interest rates rise rise sharply after a brief respite at this week’s auction: 3 month T-Bills rate rises from 17.79% in the previous week to 19.08% this week: 6-month T-Bills rate from 15.93% to 16.95%: 12 months T-Bills rate from 13.86% to 14.04%.
3. Minister of Public Security Tiran Alles says the CID has not stopped the investigations on self-proclaimed Prophet Jerome Fernando: asserts the investigation will continue, and it is still in the initial stages.
4. SJB MP Harsha Silva says the SJB will present an amendment to the EPF Act to “ensure an equitable treatment in restructuring of domestic debt”: analysts point out that the Monetary Board has paid a staggering 29% in interest in the year 2022 to the Central Bank’s own Provident Fund, whereas it has paid only 9% to the EPF Members in the same year: previously, Harsha Silva had advocated an IMF programme and Debt Re-structuring which has now led to the massive economic contraction of over 10% in GDP and nearly a million livelihood losses.
5. Former Health Minister and SJB MP Dr Rajitha Senaratne says that the Health Ministry is controlled by a mafia: points out that when a registered Danish company offered to provide Insulin at USD 1.55, the ministry selected an unregistered Ukrainian company, which offered the same drug at USD 4.00.
6. Former President Maithripala Sirisena informs Supreme Court that his decision to grant a Presidential Pardon to murder convict Jude Jayamaha was done after following all provisions under the Constitution.
7. State Finance Minister Shehan Semasinghe says the Govt expects to spend Rs.206 billion annually on the “Aswesuma” program despite only Rs.144 billion being spent on welfare benefits in 2022: also says as per the agreement with the IMF, the Govt had promised to spend only Rs.187 billion annually to uplift the poor in the country, but has now gone beyond that stipulated amount.
8. CID informs Colombo Chief Magistrate that it is presently probing the accounts of 6 officials from OnmaxDT who had allegedly withdrawn a sum of Rs.790 mn and deposited such sums into their own accounts: CID also informs Court that OnmaxDT had been involved in a pyramid scheme and that it will produce further submissions following investigations.
9. Nadeesha Ramamayake wins the Gold medal in the 400m women’s event with a timing of 52.61 seconds at the Asian Athletics Championship 2023 in Bangkok, Thailand.
10. Sri Lanka Cricket sources say Test captain and opening batter Dimuth Karunaratne is doubtful for the first Test match against Pakistan: Karunaratne will undergo fitness tests in Colombo over the next 48 hours, before travelling to Galle, the venue of the Test beginning on July 16: if Karunaratne is unavailable, the team to be led by all rounder and Vice Captain Dhananjaya de Silva, 31.

The long-awaited moment arrived today as the renovated railway line from Anuradhapura to Omantai was officially inaugurated for public transportation. The project, made possible through an upgrade initiative funded by an Indian line of credit, has transformed the 48.5 km Anuradhapura-Vavuniya line into a modern and efficient transportation route.

Minister Bandula Gunawardena, while announcing the launch, highlighted the significant improvements made to the railway line. Notably, air-conditioned luxury carriages were introduced during the test run, allowing passengers to enjoy a comfortable journey at a remarkable speed of 100 kilometers per hour.

The upgrade project has not only enhanced the overall infrastructure of the railway line but has also contributed to improving the connectivity and convenience for commuters. The introduction of air-conditioned carriages brings a touch of luxury to the travel experience, ensuring a pleasant and enjoyable journey for passengers.

The Anuradhapura to Omantai railway line upgrade project marks a significant milestone in the region’s transportation sector. The collaboration between Sri Lanka and India has not only strengthened bilateral ties but has also paved the way for enhanced connectivity and improved transportation options for the public.

In a press conference held at the Ministry of Finance, State Minister of Finance Ranjith Siyambalapitiya affirmed the government’s commitment to alleviating the current tax burden faced by the people. Siyambalapitiya assured that necessary measures would be promptly undertaken to relieve taxpayers and emphasized that the government had no intentions of imposing additional burdens on them.

Siyambalapitiya stated, “We are determined to engage in discussions and swiftly reduce this burden at the earliest opportunity.”

Regarding Sri Lanka’s economic progress, the State Minister highlighted a substantial growth rate of 38.1% from January to May of the current year, compared to 2022. He further provided specific figures, stating that tax revenue had increased by 44.9%, income tax by 53.6%, Goods and Services tax by 65.6%, and taxes on foreign trade had decreased by 12.2%. Siyambalapitiya clarified that the decline in taxes on foreign trade was not attributed to any fault on the part of Customs but rather the result of restrictions on the importation of certain goods to stabilize the country’s economic state.

Additionally, Siyambalapitiya acknowledged that total expenses had risen by 47.8%, primarily due to the implementation of welfare schemes and subsidy grants.

Overall, the State Minister’s remarks reassured the public that the government was committed to addressing the tax burden and taking necessary actions to alleviate it while highlighting the country’s economic progress and the factors contributing to the current state of taxation.

Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Showers or thundershowers will occur at a few places in Uva province and in Ampara and Batticaloa districts during the evening or night.

Fairly strong winds about (40-45) kmph can be expected at times in Northern and North-Central provinces, and in Puttalam, Hambantota and Trincomalee districts.

General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

By: Staff Writer

Colombo (LNW): The tax policy advisory of the Finance Ministry has given assurance to the business community that if there is no proper refunding mechanism in place, the removal of the Simplified Value-Added Tax (SVAT) scheme may not take place in January 2024, the National Chamber of Exporters (NCE) said.

The assurance was given by Finance Ministry Tax Policy Advisor W. Thanuja A. Perera, the NCE said in a press release that was based on a panel discussion it hosted on SVAT, recently.

According to the NCE, Perera has shared while addressing the panel discussion that the authorities are working on a mechanism to make sure that the exporters are protected via a refunding mechanism, following the termination of SVAT.

“Refund is part and parcel of the VAT mechanism. Currently, we are in a situation where we need to have more revenue mobilized,” Perera was quoted as saying.

While noting that the removal of SVAT is in the drafting stage, Perera had pointed out that there was no VAT mechanism in any other country without refunds.

Meanwhile, discussions were also held on whether the Inland Revenue Department (IRD) needs to issue credit vouchers to Customs for the VAT amount payable at the point of import, under the Temporary Import for Export Processing n(TIEP) scheme.

In June, the Cabinet of Ministers announced the decision to rationalize the VAT exemptions and abolish the SVAT scheme.

The exporters across diverse industries responded to the move stating that the SVAT removal would be detrimental. VAT was introduced in April 2011 to address the fraud and corruption that arose due to the delays in VAT refunds to the manufacturers supplying to exporters, providers of specified services to exporters and many other taxpayers.

The NCE highlighted that prior to the implementation of the SVAT system, the exporters, who had refunds from the IRD, suffered due to the inefficiencies of the tax office to process refunds in a timely manner. Some refunds to exporters dragged up to about 18 months.

Due to massive refund build-ups in the past, the room opened for fraud and corruption in relation to VAT refunds as well, the NCE pointed out.