In a desperate move of using monetary tools to ease the liquidity conditions in banks, the Central Bank issued fresh directions allowing them to temporarily do away with the requirement to report the Statutory Liquid Assets Ratio (SLAR) separately for domestic and off-shore banking units and instead allowed reporting the ratio on a consolidated basis, effective from December.
The licensed commercial and specialized banks are required to maintain a minimum of 20 percent and a maximum of 40 percent of their adjusted liabilities in liquid assets, which typically are parked in Treasury bills and bonds.
However, in a Banking Act Direction issued recently, the Monetary Board has taken a decision to allow the licensed commercial banks “to maintain liquid assets of an amount not less than 20 percent of total adjusted liabilities, on a consolidated basis for the overall bank, until further notice”.
Hence, the circulars thus far in effect stipulating the requirement to maintain the SLAR separately for the Domestic Banking Unit and Off-Shore Banking Unit are temporarily deferred by the latest Direction issued.
The new instructions on the banks’ liquidity came just days after Central Bank Governor Dr. Nandalal Weerasinghe identified the shortfall in the rupee liquidity in the banking system as one of the reasons for the prevailing higher than desired level of short-term interest rates in the market.
Thus, he said he would intervene to ease the liquidity condition in the banking system. “In the next couple of weeks, we will try to address this situation in terms of liquidity as the first step of stabilizing the short-term interest rates,” he added.
The Central Bank is under tremendous pressure to ease the current elevated level of interest rates and specially Dr. Weerasinghe became a lightning rod, receiving severe criticism for suffocating the economy.
However, the Central Bank has made reining in runaway inflation as its top priority, as maintaining price stability is the primary mandate of any central bank.
While its actions have begun to generate results, with the country entering a possible disinflation path in October, after inflation peaking just under 70 percent in September, these levels of inflation do not support businesses and households to engage in their usual economic activities.
Hence, the Central Bank’s actions in bringing inflation down to an acceptable level of 4-6 percent take precedence over everything else to create conditions conducive to do business, create jobs and generate economic well-being by preserving household income.
CB to temporally do away with liquid assets requirement for banks
Sri Lanka to engross with all 47 prefectures of Japan
Sri Lanka is to increase engagement with all 47 prefectural governments in Japan to seek commonalities with Sri Lanka and understand competencies of each prefecture, the Ambassador of Sri Lanka to Japan, Rodney Perera said.
As means to promoting Sri Lanka throughout Japan, he proposed to increase engagement with all 47 prefectural governments to seek commonalities with Sri Lanka and understand competencies of each prefecture.
Image building of Sri Lanka in Japan and creating a fresh narrative about Sri Lanka was also elaborated.
Newly appointed Ambassador of Sri Lanka to Japan, E. Rodney M. Perera assumed duties at the Sri Lanka Embassy in Tokyo. He is the eighteenth Sri Lanka Ambassador to Japan during last 70 years of bilateral relations between the two countries.
Ambassador Perera addressed the gathering and invited the Sri Lankan community to engage Mission officials and expressed the benefit of working together as one team to support the efforts of the Embassy of Sri Lanka to further enhance bilateral relations with Japan.
He also explained that, as stated by the President of Sri Lanka during his recent visit to Japan, there is a vital need to rebuild the ties between the two countries to reach the full potential of this time-tested multifaceted mutually beneficial partnership.
He elaborated that Japan and Sri Lanka could jointly address some areas such as food security, energy security and maritime safety that have an impact on both countries.
He stressed on the need to capitalize on Sri Lanka’s strategic location, its access to South Asia and Southeast Asia through the use of trade agreements such as FTA’s to find innovative ways to increase country’s trade volumes and income to generate much needed foreign currency.
He noted the importance of product diversity and collaborations with established Japanese business enterprises to build investor confidence and the need to develop viable supply chains and increase investments particularly in IT and banking sectors.
Promoting Japanese travelers to visit Sri Lanka and making full use of the employment opportunities made available for Sri Lankans by Japan remain immediate priorities of the Embassy in Tokyo
Join One Law for All and FiLiA for a mass hair-cutting in solidarity with Iran
Piccadilly Circus, London. 26 November. 3-4pm.
#Hair4Freedom #16DaysOfActivism
Maryam Namazie, spokesperson of One Law for All and Lisa-Marie Taylor, CEO of FiLiA are calling on women to join them in a mass hair cutting solidarity action with the Iranian women’s revolution.
Women can take part in this solidarity action in person and from home please see our joint statementHEREfor steps women can take to participate in the solidarity action.
Since the murder of Iranian Kurdish woman Mahsa Zhina Amini by the Islamic regime of Iran’s morality police for ‘improper’ veiling, there have been daily mass protests in Iran. These protests, led by brave Iranian women and girls, are being supported by men and attended by people in their tens of thousands every day across the country.
Maryam Namazie (spokesperson One Law for All) comments:
“The Islamic regime has stepped up its repression, sending tanks, machine guns and weapons of war to the streets of Kurdistan. There are numerous reports of rape and sexual abuse against women and girls who have been arrested, over 15,000 so far across Iran. And hundreds have been killed, many of them children and young people. The only way we can help stop these killings and show solidarity is by coming out in their defence. #Hair4Freedom is one way to support, strengthen and encourage the women’s revolution in Iran. If women don’t come out in full force for women in Iran, who else will?”
See also Maryam’s video message HERE.
“FiLiA stands in solidarity with our Iranian Sisters as they continue the long and honourable tradition of female resistance against authoritarian rule in Iran. Part of a growing feminist revolution being witnessed worldwide; their determination and bravery is an example of what is possible when Women unite to fight for the liberation of us all,” says Lisa-Marie Taylor (FiLiA CEO).
JOIN #HAIR4FREEDOM
@maryamnamazie
@FiLiA_Charity
To join this solidarity action, here are the steps that women can take:
- Join One Law for All and FiLiA in Piccadilly Circus, London on 26th November at 3pm for a mass hair-cutting.
- You can cut as much or as little of your hair as you are comfortable with.
- If you are taking part virtually please take a photo or video (10 seconds or less) of your hair-cutting solidarity action and post on social media during the 16 days of activism.
- Remember to tag @maryamnamazie and @FiLiA_Charity and use hashtags #Hair4Freedom #MahsaAmini #16DaysofActivism.
- Post your hair in a small freezer style bag, and a name label if you can (no later than 15 December) to:
Hair 4 Freedom, One Law for All
BM 1919
London WC1N 3XX
- We hope to deliver your hair to the British Foreign Office and The Embassy of the Islamic Republic of Iran in London during January 2023. More information will be added to the website once all the hair has been received.
- Write to your MP about your involvement in this solidarity action (see below for a draft email you can use and to access a tool to help you find your MP’s email address). Remember to add your own comments if you can; personalised emails have more impact.
#Hair4Freedom is being organised during and as part of 16 days of activism. The Global 16 Days Campaign, launched by the Center for Women’s Global Leadership and feminists from around the world at the first Women’s Global Leadership Institute in 1991, is used worldwide to call for the elimination of sex-based violence. It is run annually from November 25 (International Day Against Violence Against Women) to December 10 (International Human Rights Day) #16DaysOfActivism.
An order for former President Gotabhaya to appear before the Supreme Court!
The Supreme Court today (24) ordered former President Gotabhaya Rajapaksa to appear before the Supreme Court on December 16.
That was when the petition filed against the release of the former Member of Parliament Duminda Silva on presidential pardon, who was sentenced to death, was called today.
The Supreme Court today ordered that the former president be named as a respondent in this petition.
The petition was considered before the bench of Supreme Court Judges Murudu Fernando and Yasanta Kodagoda.
The foreign travel ban against the former CBSL governor extended further
The Colombo Magistrate’s Court has ordered the extension of the ban on foreign travel, which has been extended even to former Central Bank Governor Ajith Nivard Cabral, until the 15th of December.
That was when the personal complaint filed against the former Governor of the Central Bank by the former Governor of the Southern Province Keerthi Tennakoon was summoned before the Colombo Magistrate’s Court today (24).
Ajith Nivard Cabral also appeared before the court today.
At that time, the lawyers who represented Ajith Nivard Cabral raised initial objections stating that it is not possible to maintain this case and Colombo Additional Magistrate Harshana Kekunawala ordered the plaintiff’s lawyer to submit written speeches related to those initial objections on December 15th.
The personal complaint has been submitted alleging that he has misused public funds while acting as the Governor of the Central Bank of Sri Lanka between 2006 and 2015.
SL Government to bring all transport services under one digital platform
Government will implement a new system bringing all the transport services in this country including trains, buses, school vans and taxi services under one digital level.
The National Council sub-committee will be identifying short- and medium-term programs related to economic stabilization took into discussion regarding the creation of passenger convenience by creating this digital system.
Discussions on the matter was held at the National Council sub-committee on identifying short- and medium-term programs related to economic stabilization under the chairmanship of Hon. Patali Champika Ranawaka, Member of Parliament recently (21)
Representatives of several parties related to the transport sector of Sri Lanka participated in this committee and the views of the respective parties on the current problems in the transport sector were taken into account.
Representatives of transport services including Sri Lanka Private Bus Owners Association, Three Wheelers Association, School Children Transport Association pointed out that due to the low fuel prices, restrictions imposed on the import of vehicles and restrictions imposed on vehicle spare parts, they have to face severe difficulties.
They also pointed out that the price of spare parts including vehicle tires has increased by 300%. Furthermore, these representatives pointed out that the number of vehicles used for transportation including buses, school vans and three-wheelers are decreasing due to the shortage of auto parts.
Patali Champika Ranawaka, Chairman of the sub-committee, said that the committee will present several suggestions focusing on all these situations. Accordingly, he said it is proposed to bring all the transport services in this country to one digital platform to create passenger convenience as an important proposal.
The Chairman further said that a combination of all these proposals is expected to be presented to the National Council in December.
This will serve as the building block for new technological innovations that can strengthen digital commerce and e-governance in all aspects of transport services to operate it more efficiently and transparently.
Sri Lanka has the potential to transition to a smart nation, making innovative technology the backbone of every sphere of activity.
By doing this, key issues currently facing the country can be addressed and critical sectors and services can be transformed into highly efficient, transparent, and profitable systems which in turn can transform people’s lives.
Chief of the Raw Intelligence Service holds discussions with the President and Basil?
It is reported that Samant Goyal, the head of India’s “RAW” intelligence service, visited Sri Lanka a few days ago.
It is also mentioned that he had met and discussed with President Ranil Wickramasinghe during that visit.
Sources said that he has also met and discussed with the national organizer of the Sri Lanka Podujana Peramuna Basil Rajapaksa.
An announcement from 5 partner parties of the UPFA on the appointment of Thilanga Sumathipala
5 partner parties of the United People’s Freedom Alliance say that they do not accept the appointment of Thilanga Sumathipala as the new General Secretary of the United People’s Freedom Alliance.
By issuing a joint statement, the parties point out that if the secretary general is removed and someone else is appointed, according to the constitution of the alliance, the executive council or the partner parties should have been informed, but this did not happen.
Below is the announcement issued by the People’s United Front, Eelam People’s Democratic Party, National Congress, Sri Lanka People’s Party and Desha Vimukti Janata Party.
SRI LANKA ORIGINAL NARRATIVE SUMMARY: 24/11
- President Ranil Wickremesinghe says he won’t dissolve Parliament until stability returns: vows to crush non-democratic attempts to change govt: asserts he would deploy military and use emergency powers if necessary: accuses the Frontline Socialist Party and its leader Kumar Gunaratnam for attempt to capture Parliament on 13th July: adds he will appoint a Commission to investigate media involvement in the struggle.
- CB
Governor Dr. Weerasinghe says he will name & shame export companies that fail to convert forex earnings within stipulated time: threatens penal action against over 50 large scale exporters who are allegedly declaring unrealistic and low local value additions. - President’s Senior Economic Adviser Dr. R H S Samaratunga says any “debt-for-nature” swap
will be subject to
IMF Board approval: says Govt can’t get IMF’s USD 2.9 bn over 4 years without a successful debt restructuring programme. - SJB MP and Economic Guru Harsha de Silva hints that domestic debt restructuring will be inevitable: says interest payments expected to rise considerably in 2023 on domestic borrowings: highlights rollover risk.
- CEB engineers warn of difficulties in continuing power generation at the Norochcholai Coal Power Plant: say procurement of coal seriously hampered by the non-availability of credit facilities to purchase coal as a consequence of debt default.
- According to CB daily Exchange Rate reports, Rupee firmly “fixed” at Rs. 360.99 (buying) and 371.83 (selling) per USD by the Central Bank since 17th November 2022:
- Cabinet approves Bill to set expenditure limits on election candidates: Justice Minister Wijedasa Rajapakshe says new law expected to enhance transparency and accountability of the public representatives.
- Speaker orders SJB MP Chaminda Wijesiri to leave the Chamber: suspends him from Parliamentary session after he attempted to assault SLPP MP Nimal Lanza.
- Former Central Bank Governor Ajith Nivard Cabraal says the previous Cabinet Ministers were fully apprised of the economic crisis in the country by then Finance Minister, via several Cabinet Papers.
- Colombo Magistrate’s Court grants bail to Ven. Galwewa Siridamma Thera who was remanded under the Prevention of Terrorism Act: however, he has been remanded again until December 6 by the Kaduwela Magistrate’s Court, pertaining to anothet incident.
Foreign Secretary Aruni Wijewardane delivers Keynote Address at the Ceylon Chamber of Commerce Members’ Forum – 2022
Foreign Secretary Aruni Wijewardane, delivered the Keynote speech as Chief Guest of the ‘Members’ Forum-2022,’organised by the Ceylon Chamber of Commerce at Shangri-La Hotel, Colombo.
Explaining the substantive work being done by the Foreign Ministry and Sri Lanka Missions abroad, Secretary Wijewardane highlighted that there is a high emphasis on reorienting our external relations towards seeking greater economic opportunities for the country. This diplomatic outreach by the Ministry and our Missions is looking for revenue generating initiatives for the country through encouraging safe, legal and higher-skilled labour migration, increasing inward tourism, foreign direct investment as well as trade expansion. As cooperation through economic expansion is a win-win situation for all government, the private sector and our international partners need to work together in a mutually supportive framework.
The ‘Members’ Forum-2022’ is an annual event organized by the Ceylon Chamber of Commerce along with its approximately 20 Business Councils. A large number of Business Councils of the Ceylon Chamber of Commerce, Ambassadors and members of the Diplomatic Corps, heads of Government agencies including EDB, BOI, CSE, and line Ministries, and members of the business community including from a number of private sector conglomerates, attended the event.
Ministry of Foreign Affairs
Colombo
23 November, 2022