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Not enough is known about the science of pads and tampons

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he female reproductive system has an entire branch of medicine, gynaecology, devoted to it. Yet all that effort has more or less neglected a quotidian matter that that really ought to be investigated properly. Or rather, not a quotidian matter, but a menstrual one. At any given time, about 300m of the world’s women are menstruating. Of these three-quarters will be using some sort of menstrual product—tampons, pads, pantyliners, cups, period underwear, discs and so on—to regulate their flow. An average woman who employs such devices will use around 15,000 of them during her life. Someone with abnormally heavy periods might need thousands more. And many women wear several products simultaneously, for extra protection.

Moreover, the skin of the vulva, the vagina’s external protection—which comes into direct contact with pads and pantyliners—is one of the body surface’s most sensitive parts. It is more permeable than the rest of the epidermis, and becomes still more absorbent when irritated. And the vaginal canal, where tampons sit, is lined by mucous membranes supplied by blood vessels that absorb chemicals into the bloodstream without metabolising them.

These would, it might be thought, be reasons for scientific investigation of the composition of menstrual products, and regimes of regulation capable of responding to the findings of such investigation. That is what happens with drugs and foodstuffs, two other classes of product routinely inserted into the body. But scientific investigations are patchy, and regulation is variable between jurisdictions. And, though the sheer numbers involved mean that a serious health hazard would probably have come to light by now, it is conversely true that even a small risk would affect a lot of people. In addition, both what science there is and women’s own experiences, now easily shareable over social media, suggest all may not be well.

Product moment

There have certainly been problems in the past. In 1980 hyper-absorbent tampons were linked in America to 55 cases, some fatal, of toxic-shock syndrome—a sudden fever-like condition caused by toxins released by bacteria as they multiply. That led to a tightening up of regulations in America, where tampons are now treated as medical devices (though, surprisingly, firms that make them are neither required to do so in a sterile environment nor to test samples from each batch). Other jurisdictions take a more relaxed view. In Japan, menstrual products are described as “quasi-drugs”. In the European Union they are uncategorised general products.

Official reports see menstrual products as safe. A study of 666 of them by the Ministry of Food and Drug Safety of South Korea, published in March 2017, picked up on potentially harmful compounds, but at levels within established safety margins. A report released in 2018 by France’s agency for food, environmental and occupational health and safety also ruled them safe. And one by the Swedish Chemicals Agency, published in the same year, concluded that there was “no reason for concern”.

In some parts of the world, though, women’s experience suggests all is not entirely well. In the same month that the South Korean government published its report, a campaign group called the Korean Women’s Environmental Network released testimony from over 3,000 women who had experienced symptoms including shorter periods, worsened cramps and considerably less bleeding while using certain pads. It also published the results of a scientific study which claimed that the country’s ten most popular menstrual pads collectively contained 200 chemicals of concern, including 22 known carcinogens.

In France, too, women have had worries. Among the safety agency’s findings were that 81% of respondents felt at least one kind of feminine-hygiene product (mainly tampons) involved a health risk.

In Kenya, meanwhile, a Twitter handle, #MyAlwaysExperience, became a rallying point, in 2019, for thousands of Kenyans who used it to share how their Always pads—a product so popular in Kenya that “Always” has become a generic word for pads—were causing itching, burning and rashes. Many Kenyans had put their incessant itching down to the hot climate and ignored it, but noted significant improvements after switching products.

In America, too, according to the country’s Food and Drug Administration, hundreds of women have complained about menstrual products over the past decade. With pads and pantyliners, they have reported rashes, cellulitis and chemical burns. Aside from toxic-shock syndrome, which is still happening, adverse effects from tampons have included infections caused by disintegrating tampons, sepsis, worsened cramps and heavier periods.

The two largest makers of period products say they give priority to safety. Procter & Gamble, makers of “Always” pads and also owners of Tampax, a popular brand of tampon, says it conducts more than 1,000 quality tests a year on its raw materials and that independent laboratories likewise run over 20,000 tests on its pads, tampons and their components. Kimberly-Clark, which makes Kotex pads, says: “Our feminine care products undergo thorough internal and independent safety evaluations by product safety and medical professionals that support our confidence in the quality and safety of our products.” Both firms deny adding chemicals that have been linked to problems.

Two matters of particular concern to those who worry about menstrual products are skin-sensitising and hormonal effects. Surprisingly, both the French and the Swedish studies ignored these. Skin sensitisation might be caused by fragrances and adhesives. And mdbgn, an antimicrobial preservative considered a dermatitis-causing allergen by the eu, and banned by them from many cosmetics, was detected on the sticky tabs of a pad’s surface in a study carried out in Australia in 2007. (Both p&g and Kimberly-Clark deny adding mdbgn to any of their products.)

Hormonal effects might be caused by so-called endocrine disrupters. These mimic oestrogen, a hormone essential to a host of functions including regulating the menstrual cycle. They also pose a theoretical risk to developing embryos. Though periods end when pregnancy starts, some women still wear light pads and liners for bleeding and other discharge when pregnant. Anna Pollack, a professor of public health at George Mason University, in Virginia, observes that endocrine disrupters, “have consistently been linked with changes in pregnancy outcomes, whether that’s lower birth weight or preterm birth”.

Bisphenols (used to make certain sorts of plastics), parabens (employed as antimicrobial preservatives) and phthalates (often added to plastics to soften them) are all groups of chemicals that include known endocrine disrupters. In 2020 Kurunthachalam Kannan, an environmental chemist at the New York University School of Medicine, tested 43 pads, tampons and pantyliners from a local shop and found three bisphenols, five parabens and five phthalates. There are hardly any studies on the risks of vaginal exposure to these molecules, but they were present at levels Dr Kannan considers “really high for a consumer product”. (He did not disclose which brands he tested.) p&and Kimberly-Clark say that, though they do not intentionally add chemicals such as phthalates to menstrual products, these may be found in trace amounts.

Decades of use as plastic-softeners do now mean that phthalates are widespread in soil and water. It would thus be possible for them to appear unintentionally in menstrual products. And improved scientific instruments and tests can nowadays find ever smaller quantities of substances, which could explain the detection of some of these chemicals in Dr Kannan’s tests. But even trace amounts might affect someone’s hormonal balance.

Discovering the truth here is hard—not least because the relevant tests are difficult to perform. Toxicity tests, which can be carried out only on animals, generally look for extreme responses, such as cancers or death. Checking for symptoms like itchiness, disrupted cycles or worsened cramps would require specific human tests.

On top of all that, existing studies of chemical safety often rely on administration by mouth. These are a poor basis for estimating the impact of vaginal exposure, since substances ingested orally have first to pass through the destructive chemical furnace that is the gastrointestinal system before they are absorbed into the body. Similarly, drawing conclusions from skin exposure in areas like the forearm may be a flawed approach, because this skin is far less permeable than vulvar skin.

As Kabrena Rodda, a forensic toxicologist at the Pacific Northwest National Laboratory, in Washington state, observes, “We just don’t know very much about either the short or long term effects of chemicals from vaginal exposures.” But without official standards on what is a safe dose of chemicals to be exposed to routinely, vaginally, firms are left having to choose their own testing methods and thresholds.

One possible reason for problems may be that small, rogue manufacturers are producing substandard goods. Some complaints coming from America concern products from less-well-known companies, which could skip independent testing and exploit gaps in regulations.

Another could be inconsistent manufacturing practices between countries, brands and even batches. Some Kenyan women tweeting about their experiences noted that irritating symptoms went away when they used pads imported from America or Britain. p&g initially denied any differences between their products. It now says that “Our product composition may slightly vary from region to region, due to different material supply chains, different production sites, different consumer preferences and local legislation.” Tweeters on #MyAlwaysExperience also noted that locally produced “cotton-feel” pads seemed to have a rougher perforated top-sheet than imported versions.

Test of reason

The Swedish Institute for Standards, a think-tank, has proposed creating a worldwide standard for menstrual products. This would include guidance on limits for various chemicals in them, on acceptable testing methods, and on materials. This idea passed an initial vote at the International Organisation for Standardisation, a confederation of national standards bodies also known as the iso, this year. The iso hopes that, by taking cues from existing standards on products such as condoms and sex toys, it can establish guidelines which could reduce inconsistencies between brands, products and batches.

Some smaller firms are popularising replacement products which they claim are safer, though none is perfect. Period underwear, made out of moisture-wicking material such as polyester, is an environmentally conscious alternative to pads since, as long as clean running water is available, it can be washed and reused. Menstrual cups are small, flexible receptacles, also usually reusable, that supplant tampons by collecting a woman’s flow rather than absorbing it.

Other companies are trying to make existing products safer. For example Daye, a British firm, is voluntarily certified under iso 13485, a stringent standard for medical-device makers. It hopes thus to set a higher bar for the entire industry.

The onus now, though, is really on scientists, regulators and public-health agencies to fill the gaps in knowledge about period products. Safe thresholds for chemicals are useful only in the contexts in which they have been developed, so may be unsuitable, given the vagina’s unique permeability. Drawing up specific tests for vaginal exposure would be a labyrinthine task, but without it regulators are unlikely to find satisfactory answers. In absence of these data, women have little choice but to hope sanitary products are safe. ■

THE ECONOMIST

Correction of Recent News Articles relating to Sri Lanka Embassy in Oman

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The attention of the Ministry is drawn to several news articles in the media related to an employee of the Sri Lanka Foreign Employment Bureau who was attached to the Sri Lanka Embassy in Oman.

It is noted that the articles grossly mislead the public by referring to the officer allegedly involved in the incident as an Omani official.

In view of the excellent close and cordial bilateral relations between Sri lanka  and the Sultanate of Oman, the Ministry requests the media to correct their inaccurate references  and correction to be published with equal degree of prominence.

Ministry of Foreign Affairs

Colombo

15 December, 2022

Ambassador Wishwanath Aponsu presents Letter of Credence to Chairperson of Mejlis of Turkmenistan Gülşat Mämmedowa

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Ambassador G.M.V. Wishwanath Aponsu, presented his Letter of Credence to the Chairperson (Speaker) of Mejlis (Parliament) of Turkmenistan Gülşat Mämmedowa on 08 December 2022 at the Mejlis Complex in Ashgabat accrediting him as the Ambassador Extraordinary and Plenipotentiary of Sri Lanka to Turkmenistan.

Welcoming the Ambassador of Sri Lanka to the Republic of Turkmenistan, the Chairperson of Mejlis Gülşat Mämmedowa congratulated Ambassador Wishwanath Aponsu and expressed their confidence that he will continue to further fortify the relations between the two countries. While conveying greetings from President Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena and the people of Sri Lanka to President Serdar Berdimuhamedow and the people of Turkmenistan, the Ambassador assured to make every effort to further strengthen bilateral relations specially in trade, investment, energy, tourism and legislature sectors.

During the meeting with the Deputy Minister of Foreign Affairs of Turkmenistan Vepa Hajiyev at the Foreign Office of Turkmenistan, Ambassador Aponsu underlined the importance of convening bilateral political consultations, exchanging high-level visits, establishing inter-parliamentary interactions, strengthening the existing cooperation in the fields of agriculture, textile industries, education, culture & arts, tourism, environment and urban planning. The Deputy Foreign Minister assured to Ambassador Aponsu the support of the Government of Turkmenistan to strengthen the relations between the two countries. It was also proposed to make a high-level visit from Turkmenistan to Sri Lanka in the first Quarter of 2023.  

The Ambassador also met the Minister of Energy, Deputy Minister of Trade and Foreign Economic Relations and expressed the importance of expanding two-way trade and investment and strengthening cooperation in power, energy and chemical sectors between Sri Lanka and Turkmenistan. The Turkmenistan side agreed to consider the matters during a future high-level visit and discussed the possibility of holding a virtual meeting between the two business chambers in advance. Discussions were also held with the Head of the Union of Industrialists and Entrepreneurs of Turkmenistan with a view of expanding existing relations in the fields of industry, trade, investments, tourism and other related sectors of cooperation.

Ambassador Aponsu is a Grade I Officer of the Sri Lanka Foreign Service and served as the Acting High Commissioner in Sri Lanka High Commission in Singapore and in Sri Lanka’s Missions in Saudi Arabia, Bangladesh and India. He is a graduate in Management and Finance of the University of Colombo, and holds Masters Degrees in Political Science and in International Relations from the University of Kelaniya and Annamalai University, India respectively. He is a past pupil of Prince of Wales College in Moratuwa.

Sri Lanka Embassy

Tehran

15 December 2022

What is the role of HR Dept at CBSL? Patting cry babies at Top Mgt, or equal treatment?

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Following the threatening letter sent to all employees at the Central Bank of Sri Lanka (CBSL) by its Human Resource Department demanding their written disapproval of the joint trade union action of criticising the incumbent Governor on or before a deadline (today), the trade unions of the CBSL have sent a joint letter to the Department, concluding that all decisions taken by trade unions are on the basis of unanimous or majority agreements of the executive committee of the trade unions, and that as the responsibility for these decisions rests with the trade unions, sending letters targeting individuals personally against these decisions cannot be approved of.

Accordingly, a letter signed by the five major trade unions of the CBSL denoted that the incumbent Governor failing to respond to the letters submitted by the trade unions regarding their grievances mainly contributed to the turmoil within the Bank, and that this has also made a negative impact on the industrial peace within the institutional environment.

The right of a trade union to express its opinion has been violated by the HR Department’s drastic response in defence of the Top Management of the CBSL, and such undue influence would be an obstacle to a trade union’s role towards its membership, the letter pointed out.

It added that it would be appropriate if the Human Resource Department of the CBSL caters to equal treatment for all employees, in the manner in which it works to appease its Top Management.

On December 01, 2022, all trade unions of the CBSL made a historic move by issuing a letter backed by about 200 employees levelling criticism against Governor Nandalal Weerasinghe, for failing to respond to the grievances of the employees. This was notably the first time in the history of the CBSL for all trade unions to make a joint effort to criticise the conduct of a serving Governor.

The CBSL Human Resource Department made rather a hostile response to this trade union action, demanding a written disapproval of the letter from all CBSL workers on or before 15.12.2022 (today), warning that any employee failing to meet the deadline shall be held accountable for the trade unions’ remarks against the Governor.

Previous reports:

Former CBSL Chief Cabraal urges critics to ‘read his book first,’ seen distributing copies

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Former Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal was seen distributing several copies of his new book, “Among Economic Hitmen” to journalists on a public platform.

The journalists questioned the former Governor on comments made by his successor criticising the book, to which Cabraal replied, “He can make any comment, but you read the book first.”

Source: Daily Mirror

MIAP

Overseas travel ban on State Minister Diana Gamage temporarily lifted

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The overseas travel ban imposed on Tourism State Minister Diana Gamage has been temporarily lifted by the Colombo Chief Magistrate Court today (15).

Accordingly, the overseas travel ban imposed on the State Minister was lifted for a period of five days, as the petition against Gamage was taken up for hearing today.

The decision comes in following a request made by Gamage’s lawyer to grant relief as his client is expecting to travel abroad from December 21 to 23 and for three days from December 28.

The overseas travel ban was imposed on Gamage on November 11, and was extended till November 17 and thereafter December 15, based on a petition filed against the State Minister challenging the legitimacy of her passport, birth certificate, and National Identity Card.

MIAP

Is 2023 going to be worse globally than 2022? IMF’s Gita Gopinath tells it like it is

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“Given the tough landscape, India certainly is doing relatively well and it has had a few quarters of 4-6% growth and that helps in terms of again closing the gap from the sharp contraction that happened in 2020 in terms of coming back to the pre pandemic path. We have seen private consumption recover well in India, investment doing well and we expect investment to be an important engine of growth going forward,” says Gita Gopinath, Dy MD, IMF

What are the challenges facing the global economy?
Indeed the world is going through a challenging period, there are many big issues that require global cooperation. If I were to just name some, one would be food and energy security the other is issues of debt. We are seeing what happened with the crypto landscape. If there is action to be taken on that front, it will require international coordination.

There are many issues that require countries coming and working together and which is why the G20 plays a very important role at this point. India having the presidency is really critical to this. India has been championing the Global South to make sure that sufficient financing is going to low income countries and that is going to be very critical looking ahead.

You already had a set of meetings and is there anything that you can share in terms of takeaways? A hot topic has been cooperation debt management, especially for low income countries, which were beaten by geopolitical tensions?
We have looked at the global outlook and the main challenges that the world faces. Again in the issue of food and energy security, there have been important steps that are being taken that have come out to work at the G20. This comes from Indonesia’s presidency but it will be taken over by India to ensure that there are no restrictions on exports of goods and food coming out of countries, minimising supply disruptions and finding a way to keep energy prices stable to avoid the tremendous volatility that we have seen around the world. All of that is important to deal with the cost of living crisis that we are seeing.

The second is on the debt front. About 60% of low income countries are either already in debt stress or in high risk of debt stress. The G20 produces the common framework to help countries resolve this debt problem and progress has been made with a couple of countries. But a lot more needs to be done and India is on the forefront of pushing for concrete actions to get much faster debt resolution for countries.

Sustainable finance is a big part of what we need in cooperation in terms of climate finance, again especially for the Global South. We are also making sure that technology transfers happen. These are all the issues which could not happen if we did not get all the relevant countries in the room to have these discussions.

What about crypto taxation? Every nation is trying to figure out what to do and we have had this whole crypto blowout. Is that on the agenda at all and your thoughts on that?
Absolutely, it is a key part of the agenda because every single country cannot deal with this problem on its own because the borders in that sense are porous. It is digital and can escape very easily and therefore there is a lot of action being taken on that front at the IMF. We are working very closely with India on coming up with principles on what regulations might look like but more importantly, in terms of what the consequences can be for the macro economy, how it affects cross border capital flows, the risks in monetary sovereignty and so on.

We are working on them and working closely with the FSB and the BIS and these other institutions that are very key to regulating crypto on the global landscape. This is the year when we expect to have substantial progress in this matter. I think this has been slow coming.

I think it is interesting you referred to it as a problem because the central bank in India definitely sees crypto as a problem. Is that a view you share because this is something that has divided people? There are crypto zealots who believe it is the next coming and those who think it is going to destroy the financial system, I am curious to know your own views?
The way I think about it is there is the technology that underlies a lot of these new financial instruments, the cryptography, the blockchain technology that underlies it, has the potential of solving some of the problems that we have grappled with including cross border payments and financial inclusion.

You can have smart contracts because if you tokenise money, you can have much more smart contracts that help in terms of issues of governance. There is a promise of technology but that said, the manifestation of that in the current form is seen with the meltdown in the markets. Without the regulation, it is like the wild west and very highly valued companies basically were not following the right practices and we have seen the meltdown that followed.

So farm all of that is being contained. Thankfully we have not seen spillovers to the broader economy from this meltdown but we cannot take that for granted and that is why we need to make sure that we have the right regulations in place.

Let me turn to the world economy. The last world economic outlook that the IMF put out did another downgrade of global growth to 2.7%. Your next numbers will be out early next year. Is it going to look worse? Is 2023 going to be worse than expected earlier?
It is still a little early to pin that down. Compared to October, the third quarter of this year for the US and Europe turned out to be better than expected for a few other countries too. So the global outlook was in some sense appraised on the upside but the fourth quarter high frequency data is in line with the slowing that we are projecting for next year and the country for which we have had the most significant deterioration in the outlook has been China.

Just in terms of the numbers that we are seeing and the high frequency has implications for what we will do with the numbers going forward. The reason we think next year is going to be worse than this year is because that is when we really see the consequences of all the monetary policy tightening that has happened around the world because as we know empirically it affects it with the lag and we will see that happening next year; but there is still a lot of uncertainty. I think the energy markets are still a source of a risk, we could see prices going up or down, there is a lot of volatility that can come in through that again China’s economy, how it performs is again a source of uncertainty but we will have numbers in January.

Crude has been cooling off recently largely on fears of a China slowdown. Is that a relief of any kind at all in terms of energy prices or do you see the situation worsening?
Energy prices are coming down because people expect a global recession and that is not the best way to bring prices down; being able to increase supply would be better way of bringing crude prices down but yes, for countries that are energy importers, the decline in prices will certainly help.

On the flip side – countries that are commodity exporters and there are several emerging and developing economies in that space – will now find themselves more exposed to global financial conditions and the tightening that we are seeing because what we are seeing recently that the countries that are oil exporters have been somewhat shielded while the , importers have been more affected by it, including when it comes to their currencies.

We are talking about a global recession as a given at this point?
No. In fact, our base line is for global growth to go down to 2.7%. If I want to think of something that looks like a global recession, you have to go significantly below that. There are rare circumstances when growth goes under 2% which is usually associated with a global financial crisis, the peak of the pandemic and so on. That is not our baseline and we certainly have downside scenarios where that might happen.

If I speak about the possibility of recession in America, is that a fear on the horizon?
Given the amount of monetary policy tightening that has happened and the fiscal policy tightening that has happened, we expect the growth in the US to slow some more and we expect unemployment to go up some. Now whether that would be in recessionary territory is yet to be determined.

The way we see it is we think that it is a pretty narrow path to avoid a recession in the US, given what we are seeing in terms of these fundamental drivers. But that said, if you look at the data, even up until now there is a lot of resiliency in private consumption and a lot of strength in the labour markets in the US. So we are going to hold on to see what happens in the next months.

Does it look grim for Europe?
Europe has been more directly impacted by Russia’s invasion of Ukraine and the consequences on gas prices. So, yes, they are much more negatively impacted. We have seen for instance visible divergence in how retail sales are looking in the US relative to Europe. The US is strong, the more recent data that came in for Europe was much weaker in line with the projection that we will have. About half the Euro countries have negative growth in the fourth quarter. So it is a tougher time for them.

Everyone is looking out for the Fed action. It will be the last this calendar year. What are you pencilling in? Do you think the Federal Reserve will ease up and broadly do you see central bankers continuing to hold the reins very tight?
On the positive side, they have had a second month of inflation coming down and surprisingly somewhat on the downside. This is particularly true for headline inflation. Core inflation in terms of the annual rate is still high at around 6%, though monthly that rate is coming down. So things are moving in the right direction but when inflation is still at 7% and core inflation is at 6%, well above the 2% target, I think the Fed will need to stay the course in terms of making sure that inflation comes back to its target.

Now it certainly helps that the dynamics are moving in the right direction which means that the pace of increasing interest rates will moderate relative to what we have seen in the last couple of rounds and then the question is how long do they hold on to that higher level. Given most projections that we see, it would take a while for it to come down.

A slew of agencies have recently released their India outlook. One has upgraded it and the others have downgraded, The ballpark seems to be between 6.8% and 7% of growth this year may be about 6.1% odd for the next year, how do you look at India relative to what is happening in the world, we know recession is off the table when it comes to India but do you think that this whole narrative that this is a bright spot relatively stands true?
The growth numbers for India that we put out in October was 6.8% for FY2022 and 6.1% for the next year. The data that we have seen since then are in line with those projections. In terms of its performance relative to other countries, India is certainly in a relative bright spot because for about a third of the countries, GDP is basically contracting either this year or next.

Given the tough landscape, India certainly is doing relatively well and it has had a few quarters of 4-6% growth and that helps in terms of again closing the gap from the sharp contraction that happened in 2020 in terms of coming back to the pre pandemic path. We have seen private consumption recover well in India, investment doing well and we expect investment to be an important engine of growth going forward.

Private consumption growth will probably slow down just because of what we saw this year was also coming out of the pandemic and the spending that came with it. So there are several things that are going well in India right now.

Broadly speaking, do you see inflation as a big red flag easing as well? We have had a relatively decent inflation print, the latest one has come in at 11-month low or at least the lowest this year so far. Do you see inflation easing up and monetary policy tightening beginning to pan out?
India’s headline inflation has now come within the RBI’s band but that said, an important reason for that is coming from food prices and we know that food prices are highly volatile. So, we should be a little careful before declaring success. The stickier components of inflation remain at the upper end of the range of 6% and we see that RBI has done well to raise interest rates by around 225 bps since the middle of this year. We will likely need more tightening though the exact magnitude and the pace should be data dependent.

Economic Times

Opposition Leader exchanges views on moving forward at All Party Meeting (VIDEO)

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Everyone should get together sparing differences of nationality, religion and ethnicity and accomplish the goal of saving the country in view of building a unitary Sri Lanka, said Leader of the Opposition Sajith Premadasa, addressing the All-Party conference convened by President Ranil Wickremesinghe two days (13) ago.

Contributing, the Opposition Leader emphasised that laws and regulations eliminating nationalism, racism and religious zeal shall be passed in Parliament and that it would be imperative that the trust between all constituencies of the population is ensured.

He noted that politicians should respect the differences of political ideology and opinions, adding that on the occasion of working together as a country, all differences shall be set aside.

MIAP

SL expects up to $8 bn more in loans, asset restructuring: Sabry

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COLOMBO, Dec 14 (Reuters) – Sri Lanka is expecting as much as $5 billion in loans next year from multilateral agencies besides an IMF deal, while the government is aiming to raise up to $3 billion via restructuring of state assets, its foreign minister told Reuters on Wednesday.

The island nation’s worst economic crisis in more than seven decades has resulted in widespread unrest due to shortages of food and fuel. Its then-president Gotabaya Rajapaksa was ousted in July.

Additional funds are critical for the country that is already saddled with a public external debt of $40.6 billion, of which it owes 22% to Chinese creditors.

In September, the country of 22 million reached an agreement with the IMF for a loan of $2.9 billion, which could be approved for disbursal next year.

“Apart from what we get from the IMF, we are looking at all others, the multilaterals put together another $4-$5 billion …,” Ali Sabry said in an interview.

“The president is interested in restructuring some of the (state) institutions, so through that if we can raise $2-$3 billion, our treasury and reserves become strengthened.”

Sri Lanka was expecting to seek IMF board approval for the loan in December but that has likely been pushed to January, the minister said, as the government works to lock in financing assurances from countries including China, Japan and India, as well as private creditors.

Sabry said Sri Lanka was still waiting for “letters of assurance” for debt restructuring from its largest bilateral creditor China, as well as India.

The two countries have backed the restructuring efforts and Sri Lanka has shared documents and data with them, he said.

“We have made it very clear to the IMF, to our multilateral partners and to our bilateral friends that patience is running out and it is urgent for the sake of Sri Lankans and the good health of the world economy,” Sabry said.

Overall, Sri Lanka’s economy has improved with essential imports such as fuel and food becoming regular, Sabry said.

Inflation, which edged above 70% earlier this year, eased to 61% at the end of November but the economy is expected to contract by about 8.7% this year.

“Some stability is taking place. Then growth can return,” Sabry said. “So that should start in the next quarter of next year with the IMF loan coming in, other multilateral agencies coming in. But for growth to take place, it is going to be 2024.”

SL lagging behind other countries due to absence of a national digital policy: Ranawaka’s Committee

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Sri Lanka is lagging behind other countries of the world due to the lack of a national digital policy, views exchanged at the National Council Sub-Committee on identifying Short- and Medium-term Programmes related to Economic Stabilisation chaired by Opposition MP Patali Champika Ranawaka recently.

A large number of public and private sector Information Technology experts, heads of government institutions and heads of private IT companies were invited to this meeting to discuss the issues related to the IT sector and proposals for the same.

It was also discussed that it is still not possible to prepare a network that connects all government institutions, under the concept of ‘E-Governance’. It was discussed at length about how the related policies should be prepared quickly and the distance between the state, the citizen and the businessman should be reduced.

In view of the current economic crisis, the IT sector in Sri Lanka is facing a number of problems, IT professionals said. It was emphasised that the main problem is the labour of professionals with many years of experience is flowing out of the country.

Although the IT subject has been introduced in the school syllabus in Sri Lanka, there has not been enough involvement of the experts in the field and it was also suggested to look into the possibility of making the subject of Information and Communication Technology a compulsory subject in the new education reforms, the Committee observed.

It was also suggested that steps should be taken to address the shortage of lecturers in the IT subject in government universities, and it was also suggested in the committee that it would be appropriate to prepare some tax relief programme for lecturers.

The experts pointed out that the quality of labour in Sri Lanka’s IT sector is high. Therefore, it was emphasised that the amount of foreign currency coming into the country will grow by directing workers to work in institutions located in countries such as the United States and the United Kingdom without leaving the country because there is no big issue related to the excessive demand for labour in the field.

Adding, attention was drawn to the fact that small-scale IT companies are facing severe difficulties due to the power cuts and current electricity crisis and the increase in energy costs in large-scale businesses.

It was also discussed in the committee that Sri Lanka’s ”digital economy” with a value of approximately 3.47 million dollars is about 4.37 per cent of the total economy, while considering other countries in the world, it is at a level of about 15 per cent. The experts also pointed out the need for the Export Development Board to prepare a program to reduce export transportation costs such as shipping charges, postage, and courier charges for small-scale sellers.

MIAP