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How Pakistan emerged as a climate champion

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Pakistan is not often praised for its leadership. Yet its climate change minister, Sherry Rehman, was one of the star turns at the un climate talks held in Sharm el-Sheikh last week. At the helm of the “g77+China” negotiating group of developing countries, Ms Rehman won plaudits for shepherding a new deal to channel money from rich countries to poor ones that have suffered climate-related disasters. It was the annual climate jamboree’s single main achievement.

Ms Rehman, a former journalist, information minister and ambassador to America, blends well-heeled glamour and toughness. A rare champion of Pakistani liberalism, the 61-year-old Karachiite is known for her fights against honour killings and the country’s cruel blasphemy laws. They have earned her multiple death threats. She also bears scars from a suicide blast aimed at her friend Benazir Bhutto (the former prime minister survived that jihadist attack, but not one weeks later). By comparison, the talks in Sharm el-Sheikh must have seemed like the holiday camp that the Egyptian town usually is.

Yet Ms Rehman was also assisted by the fact that the massive floods Pakistan suffered this year, costing an estimated $30bn in damages, are one of the biggest climate-related disasters on record. They gave moral authority to her argument that poor countries should receive “loss and damage” funds from the rich countries whose emissions have contributed to such calamities. A study attributes the engorged monsoon floods in part to global warming. Yet Pakistan is responsible for less than 1% of the stock of global emissions.

Pakistani environmental activists, a subset of the country’s embattled liberal campaigners, hope Ms Rehman’s triumph will stir more climate action back home. It had been modestly increasing before the floods—with, for example, a few cases in which activists sued the government for neglecting its environmental commitments. Yet Pakistan’s climate change ministry is vastly underfunded. Just $43m were allocated to it this year from a federal budget of $47bn. A proposed national climate change authority has yet to be formed, five years after a law was passed to facilitate it. Pakistan, which experiences some of the hottest temperatures on Earth, has only just begun serious work on a national adaptation plan.

The floods helped publicise such shortcomings. Pakistan’s few climate experts were suddenly hot property on the country’s news channels. But will that focus be maintained? As the government scrambles to provide flood relief, it is giving little thought to climate-proofing against future disasters. Before the floods, Ms Rehman was pushing a $11bn-17bn initiative to regenerate the Indus river that supports the livelihoods, indirectly or directly, of over 200m people. But funds that might have been earmarked for the programme are now going on flood relief.

The heightened global attention she has brought to Pakistan’s flood losses could attract a lot more money and relevant expertise. That could make the country a poster child not only for loss-and-damage activism but, more usefully, for long-term planning and climate resilience. There is a precedent for this. After a devastating cyclone in 1970 Bangladesh built one of the world’s best disaster preparedness schemes. A tragic, likelier scenario would see the momentum generated by Pakistan’s calamity and Ms Rehman’s astute diplomacy lost in a protracted relief effort and Pakistan’s usual obsessions with politics and scandal. At least, until the floodwaters rise again.■

THE ECONOMIST

Stop unnecessary “Psychiatric Evaluations” based on Sexual Orientation

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An opinion piece by Mathuri Thamilmaran, National Legal Advisor – Sri Lanka at the International Commission of Jurists

Two recent cases reported in the Sri Lankan media involving “psychiatric evaluations” based on sexual orientation garnered interest among lesbian, gay, bisexuals, transgender, intersex and queer (LGBTIQ) individuals and their allies. The facts of these cases highlight how some members of the Police and the judiciary still consider same-sex relationships an aberration requiring “psychiatric evaluation”. It is unfortunate that some law enforcement officials and members of the judiciary have recourse to such discriminatory practices in violation of internationally recognized standards.

The first case concerned an Indian woman who had arrived in Sri Lanka in June this year to meet her girlfriend who lived in Akkaraipattu, Ampara District. Her girlfriend’s father complained to the police, which subsequently arrested the couple for being in a same-sex relationship and produced them before the Akkaraipattu Magistrate court. The court ordered that the two women be sent for a “psychiatric evaluation”. According to media reports, after the “evaluation”, at a subsequent hearing before the same court, both women were released and the Indian woman was ordered to be sent back to India, while the Sri Lankan woman was sent to a safe house to ensure her safety from her family and others in her area of residence. Subsequently, media reports clarified that the court’s “psychiatric evaluation” order was only due to both women having threatened to commit suicide if separated. In practice though, the ordering of psychiatric evaluations is done routinely by Magistrates in cases involving individuals accused of engaging in same – sex sexual relationships.

In another reported case, a lesbian woman was forcibly confined at home by her family and taken to meet priests at religious shrines and forced to repeatedly denounce ‘homosexuality’ as a sin. She was also threatened by family members that she would be forced to attend counselling sessions, or that she would be sent to rehabilitation because “she was mentally ill”. When one of her friends complained to the police about the forced confinement, the woman and her friend were both threatened by the police. Upon the request of the lesbian woman’s family the police forced her to submit to a “psychiatric evaluation” to prove that “she was mentally ill”, and to handover her laptop to the police to find evidence of her same-sex relationship. Her family filed a case requesting that court order a “psychiatric evaluation” by a Judicial-Medical Officer (JMO) to prove that she was mentally ill, and an ‘interim’ Magistrate did make such order. Her lawyers challenged the order in the High Court and the Magistrate being informed of this found that there was no evidence to show that the woman was mentally ill and dismissed the case.

Sections 365 and 365A of Sri Lanka’s Penal Code of 1883 criminalize “carnal intercourse against the order of nature” and “acts of gross indecency”, respectively. Both sections have been used to criminalize consensual same-sex sexual relations, although the Penal Code does not provide a definition of the terms used by those sections. Those convicted of the ‘crime’ may face up to ten years’ imprisonment. 

The Sri Lankan Constitution in Article 12 guarantees the right to equality before the law and equal protection of the law of all persons. It prohibits discrimination on grounds of race, religion, language, caste, sex, political opinion, and place of birth but does not prohibit discrimination on the grounds of sexual orientation, gender identity or gender expression (SOGIE). The Sri Lankan government has in the past indicated before various UN bodies that Article 12 included non-discrimination based on SOGIE, but as seen above, explicit provisions and application of the law seem to negate this argument.

The CEDAW (Convention on the Elimination of All Forms of Discrimination against Women) Committee in its March 2022 decision in the case brought by Rosanna Flamer-Caldera of EQUAL GROUND against Sri Lanka stated that criminalisation of same–sex relationships between women was a human rights violation. The Committee said that the Penal Code provisions criminalising same-sex relationships violate the right to non-discrimination provided in the Convention, and recommended decriminalisation of consensual same-sex sexual relationships.

At a recent workshop for Sri Lankan lawyers held by the International Commission of Jurists (ICJ), participants cited many examples similar to the two cases recounted above where judges automatically order “psychiatric” or “physical” “evaluations” as a first step in cases against those accused of being in a same-sex relationship. This is an erroneous act in contravention of human rights protections available to all persons, including lesbian, gay and bisexual individuals. Such orders cause much mental harm to those subjected to such evaluations.

In August 2021, however, the Sri Lanka College of Psychiatrists issued a statement denouncing the view that homosexuality was a mental illness as a myth not in keeping with evidence-based science and calling on the authorities to abolish section 365 of the Penal Code. This echoes the statement by the Indian Psychiatric Society in 2018, which stated that same-sex sexuality was “a normal variant of human sexuality much like heterosexuality and bisexuality” and that there is no scientific evidence to prove that sexual orientation can be altered by treatment, but, instead, that such treatment would lead to low self–esteem and stigmatization of the concerned individual. The statement drew from the position of the American Psychiatric Association and The International Classification of Diseases of the World Health Organization both of which removed homosexuality from the list of psychiatric disorders in 1973 and 1992, respectively.

The statement by the Indian Psychiatric Society called for decriminalization of homosexuality and was cited approvingly by the Indian Supreme Court in the 2018 case that effectively decriminalized consensual same-sex relationships in India (Navtej Singh Johar & Ors. v. Union of India). In that case, the Supreme Court of India also noted that lesbians and gay men would enjoy better mental health feeling positive about their sexual orientation through “coming out”, and that being able to disclose their sexual orientation to others increased the availability of social support, which was crucial to mental health.

Non-consensual corrective treatment, including “mental/psychiatric evaluations” for LGBTIQ individuals, violates their human rights, such as their right to health guaranteed by Article 12 of the International Covenant on Economic Social and Cultural Rights (ICESCR), and also constitutes a form of torture or other cruel, inhuman or degrading treatment or punishment in violation of Article 7 of the International Covenant on Civil and Political Rights (ICCPR) and Article 11 of the Sri Lankan Constitution. Further, the Human Rights Committee has interpreted Article 9 of the ICCPR, which states that “[e]veryone has the right to liberty and security of person”, to include “freedom from injury to the body and the mind, or bodily and mental integrity”. Sri Lanka is a State Party to both Covenants.

The Yogyakarta Principles (2007) which are a set of principles that apply international human rights law to sexual orientation and gender identity categorically state in Principle 18 that sexual orientation and gender identity are not medical conditions and therefore cannot be treated, cured, or suppressed. Principle 32 (introduced by YP+10 in 2017) likewise affirms the right to bodily and mental integrity, autonomy, and self -determination irrespective of an individual’s sexual orientation or gender identity.

“Psychiatric evaluations” because of one’s sexual orientation whether at the behest of family members, healthcare professionals or authorities, including the judiciary are unnecessary. In court, such evaluations are ordered entirely at the judge’s discretion, as there is no law or policy requiring them. Such unnecessary “psychiatric evaluations” must be stopped as they are in violation of human rights and inconsistent with international law. 

SRI LANKA ORIGINAL NARRATIVE SUMMARY: 25/11

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  1. Japanese Investment Bank Nomura warns 7 countries including Sri Lanka are now at a high risk of currency crises: as per Nomura’s estimates Sri Lanka’s score is 138, while a score above 100 indicates a 64% chance of a currency crisis in the next 12 months.
  2. President Ranil Wickremesinghe says privatising profit-making State Owned Enterprises commenced under former President Ranasinghe Premadasa: also says he is following in those footsteps.
  3. Ministerial Advisory Committee on Sports and Youth Affairs that met under the chairmanship of Minister Roshan Ranasinghe learns that an amount of USD 800 has been paid per day to each person who participated in the recent T20 World Cup held in Australia.
  4. Central Bank says Sri Lanka receives around USD 1.45 bn from goods exports and USD 251 mn from services: also says authorities are now “policing” forex earnings: expresses concern that the full amount of Forex is not being converted.
  5. CB Governor Weerasinghe says Sri Lanka is in negotiations with the IMF: admits the December target for finalising the programme cannot be met: says Sri Lanka will definitely be ready to take its request to the IMF Board by January 2023.
  6. Central Bank maintains SDFR and SLFR at current levels: gross official reserves estimated at USD 1.7 bn at end October 22: while CB Governor Weerasinghe says “money printing” has reduced drastically, data shows Treasury Bill issues by Government during his term has increased by over Rs.800 bn.
  7. Public Security Minister Tiran Alles says UN Resident Representative Hanna Singer-Hamdy was pleased with the way law enforcement authorities had controlled the recent Opposition protests.
  8. Government issues gazette relaxing the import ban on several items including Refrigerators, Air-conditioners, Washing Machines and Brake Pads, with effect from 23rd November 2022.
  9. CB Governor Dr Nandalal Weerasinghe admits he receives a salary of Rs.400,000 plus a Pension from the Central Bank: CB sources say Weerasinghe receives a pension of Rs.921,000 on the 10th and salary of Rs.400,000 + allowances of 73,000 on the 25th of every month: sources point out this is the first time in history that an official from the Central Bank receives a salary and pension at the same time.
  10. Sri Lankan batsman Bhanuka Rajapaksa withdraws from Afghanistan’s tour of Sri Lanka: team announced.

CoPA Sub-Committee to resolve issue of lacking skilled workers to meet foreign job demands!

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The Committee on Public Accounts (CoPA) disclosed at the Committee meeting held three days ago (22) that complaints against the currently suspended Omani embassy officer were made since February this year, but a decision on the matter has been delayed.

Additional Auditor General. P. L. K Perera pointed out that on 28.02.2022, the former chairman of the Foreign Employment Bureau has requested an investigation through the Internal Audit Division regarding this particular officer. The Additional Auditor General further pointed out that financial fraud, certificate fraud, etc. had been reported regarding this official.

Thus, it was disclosed that the former chairman of the Foreign Employment Bureau, Maj. Gen. Mahinda Hathurusinghe, had requested the Ministry in February to make arrangements for him to be recalled to the island immediately, as probes could be hindered should the person remain in the post.

The committee expressed its strong displeasure for not taking action until the incident received a lot of publicity through the media.

The Director General of the Foreign Employment Bureau said that on 28.02.2022, according to the request of the former chairman of the Foreign Employment Bureau, an investigation on this official was conducted through the Internal Audit Division, but the allegations could not be confirmed.

The Director General added that after calling for a report from the Ambassador of Oman and based on the investigation report received from the Criminal Investigation Department (CID) on November 4, 2022, the Bureau too acted on suspending the said officer.

The Committee expressed its displeasure over the lack of prompt action regarding this officer and questioned on the matter at length. The secretary to the Ministry of Labour and Foreign Employment said that even though he came to this Ministry after the month of May this year, he will accept the responsibility. The committee pointed out that even if the secretary changes, the officials should take responsibility for this.

The absence of trained workers to meet the demand for foreign jobs in many fields including nurses was also taken into discussion at length. CoPA also pointed out that the responsibility of the Foreign Employment Bureau is not to send unskilled workers abroad, but to work with all other relevant ministries and institutions in a joint approach to send skilled workers abroad to meet the demand for foreign jobs.

Thus, the committee chairman instructed the secretary to the Ministry of Labour and Foreign Employment to prepare a mechanism within two months to send trained workers to meet the demand of foreign jobs in good coordination with the Ministry of Foreign Affairs, Ministry of Public Administration, Ministry of Education and other related institutions.

Furthermore, a CoPA sub-committee will be appointed in this regard, disclosed CoPA Chief MP Kabir Hashim.

CoPA subcommittee chair MP (Dr.) Sudarshini Fernandopulle, MPs J.C. Alawathuwala, Ashok Abeysinghe, (Dr.) Major Pradeep Undugoda, Wasantha Yapabandara, Weerasumana Weerasinghe, (Dr.) Harini Amarasuriya, Ananda Wimalaweera Secretary to the Ministry of Labour and Foreign Employment, Aruni Wijewardena, Secretary to the Ministry of Foreign Affairs, Priyantha Mayadunna, Secretary to the Ministry of Public Administration, Nihal Ranasinghe, Secretary to the Ministry of Education and other officials were present at the occasion.

MIAP

Poisons, Opium, & Dangerous Drugs (Amendment) Act in effect from Nov 23rd!

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The Poisons, Opium, and Dangerous Drugs (Amendment) Bill passed in Parliament on October 19th, 2022 shall come into effect as the Poisons, Opium and Dangerous Drugs (Amendment) Act No. 41 of 2022 from November 23rd, following Speaker Mahinda Yapa Abeywardena endorsing the certificate on the Bill.

The Minister of Justice, Prisons Affairs and Constitutional Reforms submitted the bill to Parliament to amend the Poisonous Opium and Dangerous Drugs Ordinance.

The Poisonous Opium and Dangerous Drugs Ordinance amends the law relating to Poisonous Opium and Dangerous Drugs. The amendment of this Act is expected to update and strengthen the existing law based on the needs arising from the time regarding the possession and use of the importation of drugs.

MIAP

First ticket of ‘Mahajana Sampatha’ 5,000th lottery draw presented to President!

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The sale of the first ticket of the 5,000th lottery draw of the ‘Mahajana Sampatha’ was presented to President Ranil Wickremesinghe this morning (24). The ‘Mahajana Sampatha’ lottery Draw took place at the Parliament premises.

Acting Chairman of the National Lotteries Board, President’s Counsel Mr. Ronald C. Perera presented the ticket to the President.

Senior Advisor to the President on National Security and Chief of Staff to the President Sagala Ratnayake, Adviser to the President on Parliamentary Affairs Professor Ashu Marasinghe, General Manager of the National Lotteries Board Attorney Hashini Jayasekara, Board members D.D. Jayasiri, Attorney –at – Law Asanka Randeniya, Assistant General Manager (Sales) Menura Chaturanga, Assistant General Manager (Procurement) Suneth Jayawardena and others were present on this occasion.

PMD

Know your Ranil, from one honest Tamil politician!

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“It is quite honestly a disgrace, that he (Ranil) of all people should poke fun at a young man who I think is very serious. He is serious because he’s putting his life in jeopardy. The stakes are high in this. The fact that Wasantha Mudalige and Siridhamma Galwewa thero are being targeted in this way, shows how serious leaders they are. And they are being deliberately punished for no crimes at all. Because if they had committed crimes, they’ll be evidence. Every time the Supreme Court asked, as well as now the Magistrates Court have asked, there has been no evidence given. And they’re not indicted. And now once the Detention Order lapsed, because it came under such heavy criticism, new cases are being created, so that they can somehow be incarcerated. So question is why is this targeting taking place?

….when the people and youth are willing to stand up and call into question and hold those leaders accountable to the mandate that they gave, that they must be crushed. And for that reason you need the PTA. You can tell your international partners that you’re not going to use it. That you’re going to repeal it. But you’re using it to the hilt. Because we all know, with the PTA, there is no justice. There is no law. There is no order. It is completely to be used at the whims and fancies of those who are ruling the police and the military. The Tamils more than anybody else knows that. And that is why we stand in solidarity with those youth. With the people who are struggling. 

They were struggling in a non violent way. Why don’t you say that also? When Ranil Wickremesinghe became Prime Minister, he invited people to continue to struggle. Probably because he wanted to oust the President….at that time it wasn’t terrorism. But when did that struggle turn violent? Who created the violence first? Members of this House. It is members of this House that instigated the violence. But that part of it is completely forgotten. But the counter violence….you have destroyed their economy, you’ve destroyed their livelihood. Today they can only afford one meal a day. That is not destruction of the people’s way of life. That’s fine. All that is allowed. But, we in this House, particularly those opposite, must be protected. So you use the PTA.” – MP TNPF News Gajendrakumar Ponnambalam – 

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Ranil should learn that the people are more powerful than the presidency from what happened to Gotabaya

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President Ranil Wickremesinghe’s statements are exaggerated by many people, but the Janata Vimukti Peramuna does not take them into account, and the hatred he has for the people’s uprisings that occurred in the past is being shown through the statements made by the gatekeeper who is drunk with the inconsistent power he has received. Janata Vimukti Peramuna General Secretary Tilvin Silva said that because the people’s uprising has become a challenge to his class.

He said this while expressing the position of the Janata Vimukti Peramuna regarding the controversial statement made by the President in the Parliament regarding the holding of people’s protests on November 23.

Addressing a press conference called by JVP yesterday (24), Tilvin Silva emphasized that Ranil Wickramasinghe, who did not receive any mandate even in the last election, was the only one that his party received from the national list to fill the vacancy of former President Gotabhaya Rajapaksa, who fled due to the recent popular struggles. He should have understood that he came to parliament from the position of MP and the extent of the presidency that he got from that MP position.

On foreign policy, India is reliably unreliable

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When india formally takes the helm of the g20 on December 1st, it will do so as a prominent, sought-after actor on the world stage. Having refused to condemn Russia’s invasion of Ukraine, it was praised this month for its contribution to a joint declaration of leaders in Bali that did so implicitly. It then helped create a fund at the un climate talks in Egypt to compensate developing countries for climate-related damage. This week Jon Finer, America’s deputy national security adviser, described India as “very high” on America’s list of partners that “can truly help move forward a global agenda”.

Supporters of Prime Minister Narendra Modi and his Bharatiya Janata Party often attribute India’s growing stature to a more assertive foreign policy that dispenses with the deference and dithering which, they say, characterised the approach of previous governments. Mr Modi, a charismatic Hindu nationalist who claims to want to be the “world’s guru”, is said to epitomise that change. “In India’s case, nationalism has in fact led to greater internationalism,” said the foreign minister, Subrahmanyam Jaishankar, in a landmark speech on the evolution of Indian foreign policy. Yet setting aside its nationalist rhetoric, the Modi government’s approach and objectives abroad are remarkably similar to its predecessors’.

Ever since India won independence in 1947 its foreign policy has prioritised developing its economy, defending its territory and maintaining influence and stability in its neighbourhood. And it has done so imbued with a profound fear of being dominated by a more powerful country as it was for so long. It was this sentiment that drove India and other newly independent countries to pursue their interests without joining either of the two Cold War blocs, in what became known as non-alignment. “We do not intend to be a plaything of others,” declared Jawaharlal Nehru, who would become India’s first prime minister.

Closening ties with America, which since the 1990s has viewed India as an important potential counterweight to China, are often said to have put paid to non-alignment. Indian officials in 2013 formally adopted a new guiding principle, strategic autonomy (without spelling out quite what had changed). In 2016 Mr Modi became the first Indian prime minister since 1979 not to attend the annual summit of the 120-country Non-Aligned Movement, which Nehru helped found. Under Mr Modi the closening with America has accelerated. India has expanded defence co-operation with it and sought more American investment. It has joined America, Japan and Australia in forming the Quad, a diplomatic network that seeks to promote, in tacit resistance to China’s growing influence in the region, “a free and open Indo-Pacific”. Mr Modi has described America and India as “natural allies”, a heretical term for non-alignment traditionalists.

Yet that has not stopped his government maintaining all sorts of policies that America dislikes, especially concerning Russia, India’s biggest arms supplier for decades. This was highlighted by India’s 11 abstentions at the un on motions to criticise Vladimir Putin’s invasion of Ukraine. And also by the alacrity with which it has been stocking up on cut-price Russian oil and fertiliser. Some Indian commentators say Mr Modi has reembraced non-alignment. Indeed the prime minister started attending the non-aligned movement’s annual shindig again during the covid-19 pandemic. Perhaps America’s failures against the virus, including its unwillingness to lift export controls on vaccines while covid-19 raged in India, made him reevaluate his pro-Americanism?

In reality, India’s commitment to non-alignment was never as pure as the traditionalists suppose. As needs arose, it has always got into bed with one power or another. During its border war with China in 1962 it turned to America for arms. After America grew close to Pakistan it veered so far towards the Soviet Union, whose ideology the Nehruvian elite adored, that non-alignment became a euphemism for anti-Americanism. India’s ties to America are not markedly tighter now than its Soviet ties were then.

Its relations with America might indeed be more opportunistic than its ties to the Soviets were, contrary to what some pro-India American policymakers believe. “India is today an aligned state—but based on issues,” the then foreign secretary, Vijay Gokhale, said in 2019. Its accommodation with America, therefore, “is not ideological. That gives us the capacity…to maintain our decisional autonomy.” Underlining the point, Mr Jaishankar has suggested that America’s fading supremacy, of which its anxiety over China’s rise and eager outreach to India are symptomatic, gives India both reason and opportunity to hedge its bets. “India needs to follow an approach of working with multiple partners on different agendas,” he said. The country has pursued that course unusually vigorously under Mr Modi; hence, its recent hyperactivity in world affairs. But the approach is nonetheless squarely consistent with the realism and wariness of encumbrance that, setting aside its pro-Soviet blip, have always guided Indian foreign policy.

But if its policy has changed less than advertised, how it is received abroad has changed enormously. India’s increased wealth and power mean that multiple partners are keen to work with it. This has helped Mr Modi look statesmanlike, guru-like even. And India’s many suitors are willing to excuse whatever in its behaviour they dislike. That was long true of Russia’s eagerness to sell India arms despite its friendliness with America. It is even more evident in the West’s careful response to its equivocation over the war in Ukraine.

Early in the war America’s State Department was reported to have recalled a stiffly worded missive to its diplomats instructing them to buttonhole their Indian counterparts over the war. “We know India has a relationship with Russia that is distinct from the relationship that we have with Russia,” the State Department’s spokesman said. This American reluctance to criticise India presented Mr Modi with opportunities both to maintain economic ties to Russia, and to win praise for chiding it even slightly.

Thus the plaudits he won after his gnomic semi-rebuke to Mr Putin—“today’s era is not an era of war”—was paraphrased in the Bali declaration. None of his predecessors would have been so praised for so pathetically little. No doubt Indian diplomacy has changed a bit over the past couple of decades. But the geopolitical context has changed more.

THE ECONOMIST

SL Apparel Industry predicts 30 percent decline in orders in Nov-Dec period

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Sri Lanka Apparel Exporters Association’s (SLAEA) newly-elected Chairman Indika Liyanahewage noted that the apparel exporters are forecasting around 30 percent decline in orders during the November-December period.

Sri Lanka’s main apparel exporting markets, the United States (US) and European Union (EU), are currently facing economic recissions coupled with inflationary pressures stemming from Russia’s invasion of Ukraine.

Liyanahewage expects these global headwinds to impact Sri Lanka’s apparel exports in the coming six months.

In addition, he cautioned that the removal of the dual corporate tax rate structure, which is set to increase the corporate income taxes on exports to 30 percent, up from earlier 14 percent, also threatens the competitiveness of the country’s exports, in particular when competing with countries such as Bangladesh and Vietnam.

“We are willing to pay taxes. It’s not a problem. The problem is that how competitive we are in the global market. We need a level playing field in the world market,” he added.

Further, he feared that the proposed changes to the personal income tax structure could also fuel brain drain from the country, further impacting the industry.

“Our competitive advantage is knowledge and innovation. We are already struggling to retain our skilled workforce under the current economic environment. We are a very efficient sector. We work hard and earn. If our tax money goes to pay someone who is not efficient, we are worried,” Liyanahewage said.

According to SLAEA immediate past Chairman Aroon Hirdaramani, the apparel exports are expected to reach US $ 5.5 billion at end of this year, up from US $ 5.4 billion recorded last year, however, below the industry forecast of US $ 6 billion.

Despite turbulence ahead, Hirdaramani outlined 2022 as a record year for Sri Lanka’s apparel exports