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Govt to gradually drop military personnel leading to massive redundancy

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The government expects to slash the number of Sri Lanka Army personnel to one hundred and thirty five thousand from two hundred thousand by next year, revealed State Minister of Defence Pramitha Bandara Thennakoon.

“The number of Sri Lanka Army personnel is 200,783. We expect to slash the number of estimated Sri Lanka Army personnel to 135,000 by the year 2024. In addition, by 2030 we expect to maintain our Army by about 100,000 personnel. This decision has been taken following a thorough study and an understanding,” Thennakoon said.

The Minister went on: “National Security and Economy are two sides of the same coin. Every country prioritises National Security. Accordingly, every government considering that priority allocates the highest amount from their budgets for National Security. As long as National Security exists the country’s Economy strengthens. Therefore, we as a government give priority to National Security always.”

Despite the number of military personnel being slashed the move will not affect National Security whatsoever, he added.

MIAP

Court orders to collect statement from ex President Rajapaksa in connection with money found in President’s House

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The Fort Magistrate Court yesterday (13) ordered the Police Special Crimes Division to record a statement from former President Gotabaya Rajapaksa, in connection with the money amounting to over Rs. 17,000,000 found in the President’s House during the July 09, 2022 uprising.

This was when the case related to the forced acquisition of the President’s House was taken up before Fort Magistrate Thilina Gamage yesterday.

Lawyers told the Court that a statement was not collected from the ex President in connection with the money discovered and handed over by the protesters yet.

Accordingly, the Court ordered that a statement be recorded from Rajapaksa.

Following the July uprising, ex President Rajapaksa fled the country and later tendered his resignation, becoming the first Sri Lankan President to be ousted via a public uprising.

MIAP

COPF suggests the taxing on non – cash benefits of President, MPS, officials

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Sri Lanka aims at increasing tax revenue by 69 percent to Rs.3,130 billion this year from Rs.1,852 billion in 2022 while bringing down the budget deficit to 7.9 percent in 2023 from revised 9.8 percent in 2022.

The high tax revenue target comes as millions of Sri Lankans face the impacts of the ongoing economic crisis – 66 percent inflation, job losses, and shrinking disposable income.

In this contect the Chairman of the Committee on Public Finance, MP Dr. Harsha De Silva recently emphasized that a system should be implemented to collect taxes properly on non- cash benefits starting from the President of the country to all Ministers, Members of Parliament and officials.

Non-cash benefits include vehicles, houses, employees, etc. owned by a person holding a certain position. Thus, these taxes should be carefully looked into, considering all elements, he added.

The Chairman made this observance when the Inland Revenue Department was summoned by the Committee on Public Finance (COPF) on Tuesday to discuss the Road Map for Tax Collection for the year 2023.

The Inland Revenue Commissioner General pointed out during the discussion that the amount of tax collected in the year 2022 is Rs. 860 billion and the amount of tax expected to be collected for the year 2023 is Rs. 1,667 billion in amount.

Accordingly, compared to last year, it is expected to receive more tax money amounting to 922 billion rupees this year, he said.

The largest amount which is Rs. 603 billion as expected tax revenue in 2023 is expected to receive from corporate income tax. The local revenue officials also indicated that an income of 553 billion rupees is expected from the value-added tax (VAT).

The committee also discussed at length the strengthening of this tax collection program and the Department of Inland Revenue gave information about the problems including the delay in the cases in the court related to tax payment defaults.

The chairman of the committee said that the COPF will intervene to review these problems and provide solutions.

Accordingly, the chairman of the committee informed the Inland Revenue Department to report to the committee in February about the progress of tax collection.

The attention of the committee was also drawn to some media reports that taxes were levied on the pension of disabled war heroes. The officials of the Inland Revenue Department pointed out that no such tax is levied on a pension in any way.

The regulations in Gazette No. 2307/12 under the Import and Export Control Act were also submitted to the committee for approval. This gazette was published to ease the import restrictions imposed on sports items, railway spare parts, and certain items in the cosmetics industry.

The committee approved the gazette and stressed that it is preferable to allow the import of products required for industries such as tourism and cosmetics under the recommendations of the relevant institutions by charging a higher tax.

Alles’ UPP to contest Local Govt Election from ‘Mobile Phone’ (VIDEO)

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The United People’s Party (UPP) of which Public Security Minister Tiran Alles is the Secretary General will be contesting the upcoming Local Government Election, Party Media Coordinator Chaminda Gunasinghe revealed.

The UPP has the symbol of a Mobile Phone, and expects to contest the Local Government Polls covering the entire island, including the North and the East.

Many popular political activists and social activists have already expressed their interest to contest the polls from the UPP, the Party Media Coordinator said.

Candidates can submit their applications and interviews have already commenced, Gunasinghe added.

Connect from here to apply.

MIAP

WB predicts positive 1 percent economic growth for SL in 2024

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Plunged into its worst-ever economic crisis, Sri Lanka’s real GDP is expected to fall further 4.2 percent in 2023 from 9.2 percent this year and gain a positive 1 percent economic growth only in 2024.

To this end, the spotlight highlights two key experiences of the Asian financial crisis as lessons for Sri Lanka.

Firstly, the short-term measures needed to address structural weaknesses, buffers to mitigate external shocks and build resilience to future shocks. Secondly, critical policies to promote future growth.

This was revealed by the World Bank in its Global Economic Prospects latest report released this week. .

According to the WB report, Sri Lanka will remain the only South Asian economy to suffer contraction in 2022 and 2023.

“In the face of the economic crisis, and ever increasing poverty Sri Lanka will need to expand employment in industry and services and recover real value of incomes to mitigate the impacts of the crisis, and build long-term resilience of its people

Bangladesh 2022 growth forecast is 5.2percent in 2022/23 and 6.2 percent in 23/24. India’s growth is 6.9percent and 6.6percent in 22/23 and 23/24. Pakistan’s figures are 2 and 3.2 percent respectively

Sri Lanka’s economic crisis is deepening with unsustainable debt and a severe balance of payment crisis on top of lingering scars of the COVID-19 pandemic.

The combined effects of COVID-19 and the record-high commodity prices due to the war in Ukraine took a heavier toll on Sri Lanka, exacerbating its debt woes and depleting foreign reserves. Plunged into its worst-ever economic crisis.

Debt restructuring and the implementation of a deep reform program are critical for Sri Lanka’s economic stabilization, says the World Bank in its latese economic prospects update, underscoring the need for Sri Lanka to build resilience.

According to the World Bank, Sri Lanka will remain the only South Asian economy to suffer contraction in 2022 and 2023. Bangladesh 2022 growth forecast is 5.2% in 2022/23 and 6.2% in 23/24. India’s growth is 6.9% and 6.6% in 22/23 and 23/24. Pakistan’s figures are 2% and 3.2% respectively.

The report said that the economies of the South Asia region (SAR) continue to be adversely affected by shocks emanating from the Russian Federation’s invasion of Ukraine, including higher food and energy prices, and by the tightening of global financial conditions as central banks in the region and elsewhere act to fight high inflation.

“Protecting the vulnerable is critical as Sri Lanka fast tracks deep reforms to navigate the deepening economic crisis.

The crisis calls for immediate action to protect the poorest and most in need while also focusing on strengthening the social protection system,” said Faris H. Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka.

Secretary General of the Commonwealth Parliamentary Association meets President Wickremesinghe

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Secretary-General of the Commonwealth Parliamentary Association (CPA) Mr. Stephen Twigg, met with President Ranil Wickremesinghe during his official visit to Sri Lanka.

The meeting was held at the President’s office this morning (13).

Senior Advisor to the President on National Security and Chief of Staff of the President Mr. Sagala Ratnayake was also present on this occasion.

PMD

Sri Lanka Original Narrative Summary: 14/01

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  1. Central Bank’s “fixed exchange rate policy” since 12th May 2022 now enters the 9th month with the Sri Lankan Rupee being “fixed” in a range around Rs.370 per USD: analysts expect a “floating exchange rate policy” to be introduced soon once again by the IMF: Rupee likely to depreciate sharply thereafter in keeping with weak international trade figures and very low forex inflows.
  2. State Defence Minister Pramitha Bandara Tennakoon says the Army cadre will be slashed to 135,000 from the current approved cadre of 200,783, by 2024: a cut of almost one-third in 2 years: cadre to be halved to 100,000 by 2030: analysts warn of the danger of rendering almost 100,000 well-trained young persons jobless, in a time of acute economic uncertainty.
  3. Acting Chinese Ambassador to Sri Lanka Hu Wei hands over 8,862,990 meters of cloth as a grant from China: the grant to fulfill 70% of the school uniform requirement for 2023.
  4. Cardinal Ranjith hails Supreme Court verdict ordering compensation to Easter Sunday victims: says it reflects that any high-profile person including the President has no protection from the law if they have committed a crime: stresses it would be a good precedent to future leaders and officers.
  5. Attorney General Sanjay Rajaratnam requests Office for Reparation Chairperson Dhara Wijetillake to establish a “Victim Fund” to award sums ordered as compensation in a fair and equitable manner to the victim families as per the Supreme Court judgement re. the Easter Sunday attacks.
  6. Transport Minister Bandula Gunawardena says 30 short-distance train journeys will be suspended from 16th Jan’23 onwards: explains the move is aimed at reducing costs.
  7. Political alliance formed between arch-rivals Vinayagamurthy Muralidaran (Karuna Amman) and Sivnesathurai Chandrakanthan (Pillayan): new alliance to contest every Local Government Body in the North at the upcoming LG election.
  8. Sri Lanka Tourism says new Covid-19 protocols and procedures will be henceforth applicable to all inbound tourists who must possess vaccination cards: tourists who are not vaccinated to submit a PCR report obtained 72-hours prior to arrival: no exceptions.
  9. State Finance Minister Shehan Semasinghe says the authorities’ inability to get debt assurances from bilateral creditors has delayed the bailout by IMF: asserts such inability is taking a heavy toll on the people: on 3rd May 22, CB Governor Dr Nandalal Weerasinghe indicated the economy will be stabilised within 3 months of that day.
  10. Minister of Power and Energy Kanchan Wijesekera says the Petroleum Development Authority will recommence work on exploration of petroleum resources in about 900 blocks identified around the country: authority prepares to issue 2-year oil and gas exploration licenses to suitable investors.

Woman files historic FR case in Supreme Court against Police discrimination based on sexual orientation

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A young 23 year old woman has filed a historic FR petition against the Sri Lanka Police, for discrimination based on sexual orientation. 

In the petition, the woman cites several incidents of violations of her fundamental rights by the Welisara Mahabage Police, on the basis of her sexual orientation. 

Other respondents to the case include Tiran Alles, the IGP and the Attorney General.

This is the first case of its kind in Sri Lanka’s Supreme Court. The petitioner is represented by Attorneys Thishya Weragoda, Pulasthi Rupasinha and Stefania Perera.

Woman was locked up and abused at home for weeks

The adult and working woman highlights her weeks of forced confinement at home and abuse by her parents after she revealed her sexual orientation to them.  

When a complaint was filed with the Welisara Mahabage Police, against her forced confinement and ongoing abuse, the petitioner cites the Police had conducted an inquiry into the woman’s sexual orientation instead and confiscated her phone and laptop to “find evidence of her homosexuality”. 

Mahabage Police attempted to force the woman have JMO conduct physical examination to find proof of homosexuality

The Mahabage Police later forced the petitioner to meet with a psychiatrist (an appointment personally made by the OIC) and attempted to send her to a Judicial Medical Officer (“JMO“) for a physical examination. 

LGBT people in Sri Lanka are often subject to forced psychiatric evaluations. Physical examinations by JMOs include forced anal and vaginal examinations, conducted to find “proof” of homosexuality. 

Forced anal and vaginal exams

In 2020, the Daily Mirror exposed that LGBT+ Sri Lankans were subject to routine police torture, include forced anal and vaginal examinations by JMOs. In these examinations, fingers are inserted into the vagina or rectum of an LGBT+ person in order to find “evidence” of homosexuality. 

In this petition, the petitioner highlights police attempts to subject her to a similar examination, including after filing a case against the petitioner at the Welisara Magistrate Court, because she was a lesbian. The Welisara Court dismissed the police case, agreeing with the defence counsel’s submissions that homosexuality was neither a crime nor a mental illness. 

Discrimination against LGBT community is unconstitutional

Since 2014, Sri Lanka’s Attorney General has re-iterated that discrimination against LGBT+ persons is unconstitutional and that no law can be applied in a manner that discriminates against the LGBT+ community. 

However, despite the AG’s constant repetition at UN forums, no steps have been taken in Sri Lanka by the AG to address horrific violations against LGBT+ Sri Lankans. 

Police often attempt to prosecute LGBT+ people by using sections 365 and 365A of the Penal Code. The offences criminalise “carnal intercourse against the order of nature” and “gross indecency between any persons”. Neither offences mention the word “homosexuality” but they have historically been used to prosecute LGBT+ persons.

Recently, Courts  have used their powers of interpretation and held that consensual same sex relationships are neither unnatural nor grossly indecent. Rights activists have long held that reinterpretation or reading down the provisions by the Supreme Court will go a long way in ending gross abuses against the LGBT+ community.

Last year SLPP MP, Premnath Dolawatte, submitted a private members bill to amend sections 365 and 365A of the Penal Code. Parliament is yet to debate the Bill.

Relief sought

The petitioner has asked for several reliefs from the Supreme Court, including that several of her Fundamental Rights, including the Right to Equality, Freedom of Thought and Conscience, Freedom from Cruel and Degrading Treatment and Freedom of Lawful Occupation, have all been denied by the State. 

The petitioner is also pleading with the Supreme Court for an order for Sri Lanka Police to issue directions to other police officers not to arrest or detain individuals or subject them to forced medical evaluations purely because of their sexual orientation. 

Govt to issue licenses for 900 offshore oil blocks to foreign firms

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Sri Lanka, which doesn’t pump any oil at present, hopes to accelerate oil and natural gas exploration by issuing licences for around 900 offshore blocks for foreign firms with the introduction of new regulations this year, a senior government official said.

The aim is to allow foreign firms to scout for energy resources and bring in vital investments to the crisis-hit country, he disclosed.

According to the government of Sri Lanka, seismic data shows there could be more than 1 billion barrels of oil in the Mannar Basin.

The Mannar Basin, which lies between southern India and northwestern Sri Lanka, may hold around $260 billion worth of oil and gas resources.

Starting up oil production is part of President Ranil Wickremesinghe’s plan to attract foreign investment as he seeks to stabilise the economy amid the country’s worst economic crisis in seven decades.

Sri Lanka is preparing to issue two-year oil and gas exploration licenses to expedite the oil exploration process in the island.

The new regulations were finalised by the government soon and set a framework for companies to sign an expression of interest (EOI) for exploring offshore assets around the country, Surath Ovitigama, director general of the state-run Petroleum Development Authority revealed.

In the coming months the authority expects to recommence oil and gas exploration with the first set of credible entities to boost investor confidence and serve to attract the next calls for EOIs this year .

Previous attempts by Sri Lanka to start up oil production have mainly focused on the country’s northern coast but this time the government has mapped assets surrounding all sides of the island.

The Mannar Basin, which lies between southern India and northwestern Sri Lanka, may hold around $260 billion worth of oil and gas resources, Sri Lanka’s former energy minister told parliament in 2021.

Sri Lankan authorities hope that exploration work could start as early as March and any success in the initial exercise will lead to production sharing agreements for gas and oil,

Two companies have already expressed serious interest and requests for proposals (RFPs) will be issued shortly, leading to negotiations for exploration licenses, he said.

However, a source with direct knowledge of talks said ONGC Videsh Limited (OVL), the overseas arm of India’s state-run oil explorer, is a front runner seeking to explore multiple blocks off Sri Lanka’s north and north-west shoreline.

“OVL is the company that has made the most efforts, appealed the most and has followed up with meetings. They have made representations at every level,” the source said, asking not to name because discussions were confidential.

Bangladesh grants SL 6 more months to repay US $200 mn loan

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The central bank made the decision at its board meeting on Thursday, in which it also in-principal approved the monetary policy for the second half of FY23

The Business Standard – The Bangladesh Bank has extended the repayment period of the $200 million loan to Sri Lanka by six months until September this year amid the recovery of the South Asian country from its devastating economic crisis.

The central bank made the decision at its board meeting on Thursday, a senior official, wishing to remain unnamed, disclosed.

The Bangladesh Bank lent $50 million to Sri Lanka for the first time in August 2021. Later, it provided another $150 million in two phases.

The debt-burdened Sri Lanka was supposed to repay the loan within March this year. Sri Lankan central bank Governor Nandalal Weerasinghe in a meeting with Bangladesh Bank Governor Abdur Rauf Talukder last October also said they would repay it on time.

Meanwhile, Thursday’s board meeting of the Bangladesh Bank also in-principal approved the monetary policy for the second half of the FY23, Bangladesh Bank Spokesperson and Executive Director Md Mezbaul Haque confirmed to TBS.

“Taming inflation and keeping liquidity supply normal are the main objectives of the monetary policy. The formulation is still in progress.”

“As the policy is not finalized yet, nothing can be said for sure. We will let everyone know [about the changes] on 15 January,” he added.

In the monetary policy for FY23, the central bank projected private sector credit growth at 14.10% until June next, which was 14.80% in the previous edition of the monetary policy.

According to the latest data by the central bank, the growth rate hovered near 14% in the first five months of the ongoing fiscal year – 13.97% in November, 13.91% in October, 13.93% in September, 14.07% in August and 13.95% in July 2022.

Besides, the net government borrowings from banks stood at Tk32,249 crore in the first six months of FY23.

The Bangladesh Bank used to announce half-yearly monetary policies before the pandemic. In FY20 and FY21, it announced the policy for a year. This year the central bank has returned to its normal way.

The recently visited delegation of the International Monetary Fund also suggested the announcement of monetary policy twice a year.