Colombo (LNW): The Election Commission is set to meet Prime Minister Dinesh Gunawardena this (10) morning, following the ongoing dilemma on the holding of the Local Government Election.
The Election Commission had requested a meeting with the Prime Minister on the matter, and Gunawardena, in response, had confirmed that the holding of a meeting would be possible on Monday (10) at 11.30 am.
The Commission thereafter is expected to meet tomorrow (11) to make a final decision on the holding of the LG Polls, whilst dodging many queries by the public on the ongoing delay.
The EC on a previous occasion had commented that the holding of the Polls may not be possible without receiving the necessary funds, adding that a letter submitted to the President, who also serves as the Minister of Finance, in this regard received no response.
WASHINGTON, AFP: The World Bank’s ongoing reform could result in a $ 50 billion lending boost over the next decade, US Treasury Secretary Janet Yellen told AFP ahead of stakeholders’ meetings this week where key changes are expected to be announced.
Central bankers, finance ministers and participants from more than 180 member countries are expected to gather in the US capital for the International Monetary Fund and World Bank’s spring meetings.
A key topic of discussion will be the World Bank’s evolution, amid a push for lenders to revamp and meet global challenges like climate change. The United States is the largest shareholder of the World Bank Group.
“I expect there to be an update of the bank’s mission to add building resilience against climate change, pandemics, and conflict and fragility to the core goals,” Yellen said in the interview with AFP. She added that there needs to be a recognition that these challenges aren’t separate or conflicting but rather, inextricably linked.
“Second, there will be an announcement that the bank is stretching its financial capacity to meet these objectives, and adopting changes or endorsing changes that could result in an additional $50 billion in extra lending capacity over the next decade,” Yellen said.
The move would be a significant resource boost marking a 20% rise in the International Bank for Reconstruction and Development’s (IBRD) sustainable lending level. The IBRD is the World Bank’s middle-income lending arm.
Yellen also said there would be an announcement on updating the bank’s operational model to “orient it towards the goals that we’re setting.” Among other things, this includes creating more incentives for the mobilisation of both domestic and private capital.
“We seek additional reforms during the rest of this year,” Yellen said.
In March, the World Bank submitted an evolution plan to be discussed with its development committee on 12 April, during the spring meetings.
Noting that World Bank President David Malpass has laid a “solid foundation” for the ongoing work, Yellen added that she expects US candidate Ajay Banga to be elected to the helm of the organisation and continue the revamp.
Banga was the sole nominee for the position after Malpass announced this year that he would step down early.
Also on policymakers’ agendas next week are support for war-torn Ukraine and debt restructuring.
“We have seen some movement by China on participating in debt restructuring for Sri Lanka, which is a hopeful sign,” Yellen said.
As global growth slows, the World Bank previously warned that the outlook is especially tough for the poorest economies – which face sluggish growth driven by heavy debt burdens and weak investment.
Yellen had earlier said that China should move more quickly on some debt restructurings.
Discussions on this front will continue as a newly formed global sovereign debt roundtable gathers, she told AFP.
“We’re having useful technical discussions on important elements of debt restructuring. China has been participating, and we all continue to press China for improvements,” she said.
Washington will continue pushing for a speedier and more predictable operation of the G20 “common framework” for debt restructuring as well.
On Ukraine, Yellen said: “Once again, we will work with all of our allies to insist that Russia cease its brutality in Ukraine.” She added that the United States would press for economic support alongside its partners on this front.
Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, Southern, Uva and North-Western provinces during the afternoon or night, and fairly heavy showers above 50mm are likely at some places in above areas, said the Department of Meteorology in a statement today (10).
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year, the statement read, adding that the nearest areas of Sri Lanka over which the sun is overhead today (10th) are Anamaduwa, Dambulla, Bellanewala, and Kalkudah at about 12:11 noon.
Marine Weather:
Condition of Rain:
Showers or thunder showers will occur at a few places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo, Galle and Matara.
Winds:
Winds will be easterly or variable in direction and wind speed will be (20-30) kmph. Wind speed may increase up to 45 kmph at times in the sea areas off the coast extending from Kankasanthurai to Kalpitiya.
State of Sea:
The sea areas off the coast extending from Kankasanthurai to Kalpitiya will be moderate at times. Other sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
IMF Mission Chief Peter Breuer says SL has committed to reform after years of increasing economic problems and policy mistakes: also says significant tax cuts and delays in reforms contributed to the economic crisis: many analysts also point out that SL’s debt crisis was mainly caused by massive ISB borrowings of USD 12.5 bn from 2016 to 2019, while following an IMF programme.
US Treasury Secretary Janet Yellen says China participating in debt restructuring for SL is a hopeful sign: former Chinese PM Li Keqiang had previously called on multi-lateral institutions also to participate in debt restructuring along with other creditors.
Manufacturers Assn Chairman Dhammika Fernando says at least 30% of BOI companies are down-sizing and many are unlikely to re-start after the New Year holidays: also says 40% in the SME sector are on the brink of closure: notes the newly imposed taxes are a serious concern: warns about 30,000–50,000 jobs are likely to be lost in the 1st half of this year.
State Minister of Investment Promotion Dilum Amunugama says President Ranil Wickremesinghe will have his full support if he contests the upcoming Presidential Election: adds the President fearlessly accepted the challenge of reviving the country from a major crisis and managed to stabilise the country within just a year.
NPP Leader Anura Kumara Dissanayake says the Govt got involved with the IMF on purpose due to the CB Governor Nandalal Weerasinghe’s decision not to repay debt from 12th April 2022 onwards.
World Bank projects Sri Lanka’s economy to contract by 4.3% in 2023 on the back of the 7.8% contraction in 2022: says demand continues to be subdued, job & income losses have intensified, and supply-side constraints have adversely affected production: also says half a million jobs have been lost and 2.7 million additional people have fallen into poverty.
Govt Debt advisor and former Director of Raj Rajaratnam’s Galleon Fund Dr Indrajith Coomaraswamy says he hopes China will act as a guarantor on new issuances of int’l debt once the debt restructuring exercise is finalized: also says he doesn’t hear noises in debt restructuring, other than Hamilton Reserve Bank obtaining a judgement against the country: says money will be received from the World Bank in May while the ADB is also trying to get money in as fast as possible.
Fisheries Minister Douglas Devananda says Govt will begin disbursing Rs.1,514 mn compensation among fisher communities on the Western seaboard who were affected by the MV X-Press Pearl disaster.
Justice Minister Dr. Wijeyadasa Rajapakshe takes swipe at opponents of the proposed Anti-Terrorism Bill: says anyone who does not intend to engage in terrorism need not worry about the ATB.
Indian Premier League top team Chennai Super Kings recruits SL cricketers Maheesh Theekshana and Matheesha Pathirana to their squad: Theekshana debuted last season and was used in the PowerPlay by CSK captain M S Dhoni.
National Peace Council of Sri Lanka: The government has decided to delay presenting its proposed Anti-Terrorism Act (ATA) to parliament. The National Peace Council welcomes this decision and urges the government to reconsider its presentation as it would impact negatively on the democratic space and rights available to political parties, trade unions and civic activists. In any legal reform, the fundamental rights and protection of citizens need to be guaranteed. After all, the power of the people is shared with the government for their benefit as per the constitution. The ATA fails to achieve both these objectives. The draft ATA presented by the government has several features that are worse than the Prevention of Terrorism Act (PTA) it is intended to replace.
Among the unacceptable features of the proposed ATA are its vague and broad interpretation of terrorism that would include theft of government and even private property and trade union action. The law leaves wide open who can be arrested, by whom they can be arrested and for what purpose they are arrested. It brings legitimate activities within the scope of terrorism including protests, publishing material, demands for action by government, strikes and disputes relating to racial and religious places. The law permits police or military or coast guard personnel to arrest anyone without warrant on whom they have “reasonable suspicion” of being involved in acts such as those given above. Unfortunately, it appears there is no change in the mindset of those who have framed the replacement legislation. Instead there are indications of a mindset that wishes to suppress political activism on the grounds of terrorism.
The potential for abuse under the ATA is enormous considering what we have faced under the PTA. Only last month, three persons were acquitted by the high court after having spent 14 years in prison under the PTA. The proposed ATA specifies that once a person is arrested, that person can be detained for up to 24 hours, and even more depending on the situation, in a place of the arresting party’s choosing. The plight of a young person arrested in such a manner can be imagined. Thereafter, if a detention order is signed by a senior police officer of the rank of Deputy Inspector General of police those arrested can be held for up to three months without being presented before a court of law for judicial endorsement rather than for decision.
We are opposed to the proposed ATA because it violates the constitution, duplicates existing laws and transmogrifies them into terrorism and endangers the freedoms and human rights that are guaranteed in a democratic society. We recommend that the existing laws such as the Penal Code and Criminal Procedure Code are strengthened to meet the new needs, and police are better trained in investigative methods if necessary, instead of setting up an entirely new law and security apparatus to deal specifically with terrorism. If new security laws are deemed necessary, they need to be within the parameters of human rights governed by our constitution and international standards. We call for the ATA to be withdrawn as otherwise it would empower the authorities to act with impunity to violate fundamental human rights, silence critics and those who hold opposing viewpoints.
Pakistan foreign reserves have fallen to USD 4.2 billion, which is enough to cater for one month of import bill. Sri Lanka is facing a liquidity crunch.
ByShishir Gupta
Hindustani Times:Despite Sri Lanka getting the first tranche of a US dollar 362 million loan from the IMF, the island nation is facing a liquidity crunch as the loan conditions stipulate no more printing of Sri Lankan currency to curb the inflation and for prudent fiscal management. On March 20, the IMF cleared the USD 2.9 billion-dollar package for Sri Lanka in eight installments.
Pakistan PM Shehbaz Sharif and Sri Lankan President Ranil Wickremesinghe
It is understood that Sri Lanka has repaid nearly half of US dollar 500 million dollar loan taken for fuel purchases last year, it is quite evident that donor nations including China, Japan and even India will have to take a significant haircut as part of debt restructuring of the island nation.
While Sri Lanka continues to struggle with the ongoing economic crisis after May 20, 2022 default, another Indian neighbour and cat’s paw of China in the Indian sub-continent, Pakistan, is staring at a default with reports indicating that Islamabad will have to cough up USD 77.5 billion in external debt between April 2023 to June 2026 to iron brother China, private creditors and Saudi Arabia. The external debt is one-fourth of Pakistan’s economy of USD 350 billion.
Even though Pakistan finance Finance Minister Ishaq Dar has assured the nearly bankrupt Islamic republic that it will manage a USD 6.5 billion package from IMF, Pakistan is facing a serious economic and political crisis with aggravated insurgencies in Balochistan and in Khyber-Pakhtunkhwa regions. With ousted prime minister and PTI chief Imran Khan going for the jugular of the Pakistani establishment to regain power, the judiciary split and PM Shehbaz Sharif facing public wrath over food shortage and rampant inflation, Islamabad has a fully blown crisis at hand with the world focused on Russian actions in Ukraine and Chinese actions on Taiwan. As the IMF package will come with riders accompanied with raising of taxes and rationalization of power tariff, the political cost of economic pain to the public will lead to further public disenchantment of the politicians and the Rawalpindi GHQ.
The Pakistan foreign reserves have fallen to USD 4.2 billion, which is enough to cater for one month of import bill. The USD-PKR exchange rate is touching 280 Pakistani Rupees to a US Dollar and there are food shortages in all provinces barring Punjab, the core of Pakistan.
According to a report by the United States Institute of Peace this week, the Islamic Republic holds external debt and liabilities of USD 126.3 billion as of December 2022. Nearly 77 per cent of this debt, amounting to USD 97.5 billion, is directly owed by the Pakistan government to various creditors and an additional USD 7.9 billion is owned by government-controlled public sector enterprises to multilateral creditors.
Pakistan owes USD 45 billion to multilateral institutions, USD 8.5 billion to Paris Club of creditor nations, USD 27 billion to China and some USD 7.8 billion as private debt and commercial loans. While Islamabad believes that iron brother China and fellow-Sunni Islamic nations will not let Pakistan default by refinancing loans, the repayment pressure will mount on the Islamic Republic to the tune of USD 24.6 billion in 2024-2025.
Given that Pakistan has virtually moved into the China-Russia axis and depends on Beijing for military hardware, the west, post withdrawal from Afghanistan, is rather indifferent to the woes of the Islamic Republic as it struggles to contain the rise of China. That Pakistan is a lackey of China does not really help its case.
Colombo (LNW): On the sidelines of the government’s dialogue of privatising loss-incurring state bodies, SriLankan Airlines has once again been dragged into the centre of attention due to what concerned travellers claimed as having ample evidence for the reasons behind the National Carrier being a loss incurring body.
A source on the condition of anonymity told LNW that the flight (UL 455) of SriLankan Airlines from Narita, Japan to Colombo a day ago (April 08, 2023) got delayed for three hours, an announcement that was made only in the last minute.
Below is the statement produced to LNW by a concerned traveller on the experience:
Usually Late Sri Lankan Airlines (UL 455 from Narita)
We have ample evidences for the reasons of Loss making National Carrier.
Very recently on the 8th of April we experienced one of them regarding the flight from Narita Japan to Colombo.
Passengers were at Narita Airport to board the Flight UL 455 scheduled to takeoff at 11.35 am.
It was only at the Airport they were informed that this particular flight will be delayed until 2.30 pm (by 3 hours). At that time there were foreigners who had booked this flight expecting to catch connecting flights from Colombo. They were furious and it was heard that they would not travel Sri Lankan again but would not recommend to any body to fly Our national Carrier.
Japanese staff at Checking in Counters were seen apologising on behalf of Sri Lankan Airlines for the delay. To Compensate this each passenger was give a 1,200 Yen voucher to have Meals & drinks from the Airport Cafes. (Imagine the unnecessary monetary loss).
The flight came, delayed by another one hour to turnaround before allowing passengers in. Flight resumed around 2.40 pm.
However I must say the in-flight service were excellent led by two able stewards namely Buddhi & Shehan.
They were seen chatting and serving plenty of alcohol to please the passengers as a damage control effort. Even the two meals served was excellent (prepared in Japan) compared to Horrible meals served in the Colombo Narita sector. The Cabin Crew was out of this world again compared to the Crew mainly ladies who were very rude with an attitude on the coming trip (UL 454) only good thing was the Captain Embuldeniya had landed in Narita 40 Minutes earlier than the scheduled time.
It is high time that Directors / Senior Administration Managers must pull up their socks to turnaround our National Carrier, to work towards profits from the present situation of being a burden to the Tax payers of our Country. Even to sell it, no proper Airline would look at that with the present inefficiencies, Nepotism and with politically connected job appointments etc.
We may have to wean them out as a priority to get in to the past glory of Air Ceylon & Air Lanka time.
Colombo (LNW): Concerned citizens begin to highlight certain inconveniences which they claim to have occurred at the Katunayake Bandaranaike International Airport, accusing some of the staff members of being inefficient, rude and mannerless.
These individuals urge the authorities to make an immediate intervention for the implementation of a smooth process which can make the national Airport a proud body to carry the Sri Lankan flag, in what they propose as the deployment of quality youngsters who could replace these ‘disgruntled inefficient’ staff members.
Below is a collective statement sent to LNW by these concerned citizens:
“We highlight these issue for the Authorities to intervene and implement a smooth process where we could be proud of our Airport and our Country. Please do not deploy inefficient, rude and mannerless staff with Connections to these points. Sri Lanka has plenty of quality youngsters who could replace these disgruntled inefficient staff. Over to you Minister and Airport Authorities.
It is a real inconvenience to any travellers who fly out from the Katunayake. To start with just to enter the airport is a severe struggle Security have opened only two tiny doors and checking the Passports & air ticket at these entrances inconveniencing the travellers. After struggling to enter they have to put their baggage through a scanner, this is the first scanner inside probably introduced during 30 years War. After entering again, before checking in travellers have to go through another baggage scan. Not to mention another scanning process before boarding the Plane .Authorities must do a system study and shall learn from other airports how they accept travellers in to an airport. This could avoid huge queues and do away with at least one scanning. If so any late traveller could catch the flight without missing any.
Our Sri Lankan Checking in Counters are manned by inefficient, Rude & Arrogant staff who cannot converse properly in English. Again where are the Trainers who supposed to train them. Recently we have observed there were huge queues at Sri Lankan counters and manning staff takes 10 to 15 minutes to check in one passenger . Funniest part is , this Is same for the already checked in travellers when they come to drop their baggage and to print the boarding pass.
Then Come the next dilemma. Certain Countries like Japan need to conform 3 Vaccines before coming to Japan. This aspect is being monitored by the above mentioned inefficient staff. Very recently a family travelling to Japan was interrogated by a lady ground staff at the baggage drop counter. Unfortunately a lady who travelled had her 3 Vaccines by the Army at Viharamaha Devi park and since there was no Seal in her card this staff member didn’t allow her check in. To add to this the E Vaccine Card was showing as only 2 Vaccines were administered. This is a blunder by the MOH Colombo. After many arguments Finally she was allowed to check in. However again at the boarding gate she was stopped and this particular lady came and shouted and wanted her to be offloaded mentioning she had made a mistake by allowing her to check in and already she has refused many passengers who didn’t have proof of 3 vaccines. At this point the lady travelling insisted that this staff member shall escalate this issue to her higher up and as a result another gentleman came and after listening to the story of mistake by the army for not sealing the cards and MOH not mentioning 3 Vaccines despite the application, allowed this group to travel and insisted a indemnity/ Guarantee. After providing that this group was allowed to board the plane . It was later revealed that this group was travelling for a series of scheduled meeting with Japanese buyers to promote Exports from Sri Lanka. It was learned that this group were back in Sri Lanka after a Successful tour meeting Japanese buyers.
Last but not least must mention the Immigration counters where again manned by thoroughly inefficient staff who are glued to their Mobile phones whilst on duty and their rude attitudes. This is same for when returning to the Country. This is the first impression giving about our Country to a foreigner. We feel these counters shall be manned by pleasant efficient young crowd like any other country. This is the way our Countrymen treat them. It was a real harassment from the time entering the Airport up to the boarding the flight. And to many Visitors visiting our Mother Land.
We highlight these issue for the Authorities to intervene and implement a smooth process where we could be proud of our Airport and our Country. Please do not deploy inefficient, rude and mannerless staff with Connections to these points. Sri Lanka has plenty of quality youngsters who could replace these disgruntled inefficient staff. Over to you Minister and Airport Authorities.”
Colombo (LNW): Sri Lanka’s heightened fiscal, external, and financial sector imbalances and its fluid political situation pose significant uncertainty for the country’s economic outlook, says the World Bank in its twice-a-year update, underscoring the need to address the root causes of the country’s economic crisis and build a strong and resilient economy to prevent future crises.
Released today, the Sri Lanka Development Update (SLDU), Time to Reset projects the country’s economy to contract by 4.3 percent in 2023, as demand continues to be subdued, job and income losses intensify, and supply-side constraints adversely affect production.
“The economic crisis in Sri Lanka has had deep impacts with over half a million jobs lost and 2.7 million additional people falling into poverty between 2021 and 2022,” said Faris H. Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka. “The prolonged recovery from the scarring effects of this crisis in addition to a slow debt restructuring process, limited external financing support, and an uncertain global environment pose significant risks to the country’s economic growth.”
The economy will continue to face significant challenges in 2023 and beyond. A lower-level external trade equilibrium could have contagion effects on domestic trade, economic activity, jobs and incomes. Combined with adverse effects from revenue-mobilization efforts, which are essential for regaining fiscal sustainability, poverty projections could worsen. The financial sector needs to be managed carefully, given rising non-preforming loans and large public sector exposures.
Mitigating the impacts on the poor and vulnerable remains critical during the adjustment. Reducing poverty requires better-targeted social assistance, an expansion of employment in industry and services, and a recovery in the real value of incomes. However, strong and effective implementation of the government’s reform program, supported by financing from international partners, could boost confidence and attract fresh capital inflows that are key to improve job prospects and restore livelihoods.
“The current crisis is not a temporary liquidity shock that can be resolved by external financing support from outside. Instead, the crisis provides a unique opportunity to implement deep and permanent structural reforms that may be difficult in normal circumstances,” added Hadad-Zervos. “Sri Lanka can use this opportunity to build a strong and resilient economy.”
The SLDU is a companion piece to the latest South Asia Economic Focus, Expanding Opportunities: Toward Inclusive Growth, which projects regional growth to average 5.6 percent in 2023, a slight downward revision from the October 2022 forecast. Growth is expected to remain moderate at 5.9 percent in 2024, following an initial post-pandemic recovery of 8.2 percent in 2021.
The report notes that to go from recovery to sustained growth, South Asia needs to ensure economic development is inclusive. The region has among the world’s highest inequality of opportunity. Between 40 and 60 percent of total inequality in South Asia is driven by circumstances out of an individual’s control such as place of birth, family background, caste, ethnicity, and gender. Intergenerational mobility is also among the world’s lowest. Data highlighted in the report shows that less than 9 percent of individuals whose parents have low levels of education reach education levels of the upper 25 percent. Such disparities lead to differences in access to jobs, earnings, consumption, and welfare and to calls for redistributive policies.
The report recommends continuing to improve the quality of primary education and expanding access to secondary and higher education, evaluate and strengthen affirmative action policies targeted to “low opportunity” groups, and policies to improve the business climate for small and medium enterprises, who account for the bulk of job opportunities for the less well-off. In addition, reducing barriers to labor mobility can have a powerful equalizing impact as urban areas tend to offer more opportunities for social mobility.
Colombo (LNW):The report has suggested a strategic response to transforming the economy, focusing on four priority sectors in which Indo-Japanese collaboration is sought to put the country on a sustainable growth trajectory for a structural shift.
In his welcome remarks at the launching ceremony of the report, Pathfinder Foundation Chairman Bernard Goonetilleke, highlighted that two countries – India and Japan as very close development partners of Sri Lanka, who have much to contribute to reviving Sri Lanka’s economy.
He added, “India’s interest in the welfare of the country and its people was evident in the granting of generous credit and other facilities amounting to almost $ 4 billion in the recent past to overcome the economic crisis.
Likewise, Japan has been a country which has generously provided economic support going back many decades.”
The Official Launch of the Report on “A Medium and Long-term Strategy for Indo-Japanese Collaboration to Support the Economic Transformation of Sri Lanka”, prepared by the Pathfinder Foundation with the assistance of a panel of experts, was held in Colombo.
Foreign Affairs Minister Ali Sabri was the event›s Chief Guest, with High Commissioner of India Gopal Bagley, and Ambassador of Japan Mizukoshi Hideaki gracing the occasion.
The event was organised in collaboration with the International Trade Centre (ITC), Geneva and attended by representatives from several government and private sector agencies. Bernard Goonetilleke. Chairman, Pathfinder Foundation; handed over the Report to Foreign Affairs Minister Ali Sabri.
The report has suggested a strategic response to transforming the economy, focusing on four priority sectors in which Indo-Japanese collaboration is sought to put the country on a sustainable growth trajectory for a structural shift
In his address, Foreign Affairs Minister Ali Sabry, highlighted some important points for consideration.
He urged all think tanks, such as the Pathfinder Foundation, to look into areas a typical politician would not comprehend and push for necessary changes.
He also reiterated that a politician should have the humility to listen and learn from experts on the subject, encouraging think tanks to engage with the public and share populist policies.
Ambassador Gopal Bagley pointed out that Sri Lanka occupies a unique place in India’s foreign policy mainly due to the neighbourhood-first policy of India. He added that India stands ready to assist Sri Lanka in overcoming the current economic crisis.
Ambassador Mizukoshi Hideaki expressed his hope that this year will be the beginning of an economic revival providing a springboard for future development for Sri Lanka.
He also mentioned that Japan had been a long-standing partner in Sri Lanka’s socioeconomic development.
