- President Ranil Wickremesinghe says the Election Commission has not taken an official decision on a date to hold the Local Government Election: insists the election has not been postponed: also says there is no election to be postponed.
- SLPP Rebel MP Dullas Alahapperuma questions why the UNP handed over nominations to the LG elections if the election was not legally declared as stated by President Ranil Wickremesinghe: claims what was said by the President in Parliament was completely false: also says it is now clear who was behind the move to postpone the LG polls.
- Supreme Court postpones hearing of the petition filed by a Retired Colonel of the Army, seeking a postponement of the LG Elections, until 11th May.
- SJB MP Mayantha Dissanayaka appointed Chairman of the Committee on Public Finance: Harsha Silva throws tantrum in Parliament after he is overlooked for the position: SLPP MP Professor Ranjith Bandara elected Chairman of COPE, defeating SJB MP Eran Wickramaratne by 16 votes to 7.
- Attorney General informs Supreme Court that President Ranil Wickremesinghe has decided he will not sign the implementation of capital punishment ordered by any Court.
- Police arrest IUSF Convener Wasantha Mudalige and 55 others for forcibly entering the Education Ministry in Battaramulla: group includes student Buddhist monks of the Buddhist and Pali University in Pitipana.
- Secretary, Unawatuna Hoteliers’ Assn Sumith Ubesiri says hoteliers are struggling to survive after the recent electricity tariff hike: also says the present circumstances are so bleak they will be forced to decide shortly whether to continue in the industry or not.
- Cabinet reviews progress of 261 large-scale development projects: notes that progress of majority of projects has been very slow due to the suspension of foreign currency tied to particular developments: also notes difficulties in securing the necessary money due to the economic crisis.
- Sri Lanka’s Ambassador to Qatar Mafaz Mohideen says Qatar and Sri Lanka have embarked on significant developments in bilateral relations this year: also says the two countries are seeking ways to further boost cooperation.
- Sports Minister Roshan Ranasinghe appoints a 10-member Expert Committee to prepare a new Constitution for Sri Lanka Cricket: meanwhile, Sri Lanka Cricket earns a net profit of Rs.6.3 bn in 2022, it’s highest annual net income in history.
Sri Lanka Original Narrative Summary: 24/02
The President tells Parliament his priority is building the economy and not politics
Although the opposition has accused the government of postponing the elections, a fixed date has not yet been announced for holding an election.
Participating in the parliamentary debate held today (23), President Ranil Wickremesinghe stated that the Opposition’s accusations of postponing the elections are baseless as the Election Commission has not officially announced a fixed date for the election.
He further stated that his priority is not politics but building the economy, emphasizing that the survival of the country is dependent on a strong economy.
Following is the full speech delivered by the President in Parliament;
The Opposition has requested a division on the Resolution under the Essential Public Services Act, which is being debated, and this is not a typical occurrence. Electricity provision is an essential service, and I fail to understand why the Opposition is opposing it. Are they against uninterrupted electricity provision? Or do they object to electricity altogether? If the Opposition wishes to debate this matter, we are open to it. However, they had requested a debate on the postponement of the election, which is not possible as there is no election to postpone.
Initially, I did not intend to participate in this debate as I am not inclined to discuss politics. However, the Election Commission, which has been summoned before the court, has reportedly submitted an affidavit stating that an election cannot be held. In light of this development, I feel compelled to speak up on behalf of the Secretary to the Finance Ministry and others under me, as it is unfair to them.
The Secretary to the Treasury has informed the Commission that they are unable to provide the necessary funds to conduct the election.
I must clarify that the statement claiming that the Secretary to the Treasury informed the Election Commission that they were unable to provide funds for the election is false. In fact, on December 14, I personally informed the Election Commission members about the economic situation of the country and instructed them to hold an election when the number of members of the local government election was reduced to 5000. This was because holding an election at that time would not have been healthy for the economy. I took this step as I believed it was my obligation, given that this is not an ordinary Commission but a caretaker Commission.
It is worth noting that under the transitional provisions of the 21st Amendment (In Part 3 under the Interim Provisions) to the Constitution, which was passed by the House, the Chairman and members of the Election Commission ceased to function from the day that this Act came into operation. This was on October 31, when the Speaker endorsed it. However, the members can continue to discharge their duties in accordance with the constitution before the day they ceased to function. This is not an ordinary Commission, but rather a temporary Commission that is accountable to the Parliament. As such, they should have discussed the matter with the House, which has not been done, and this is a defect.
As the President, I personally informed the Election Commission about the situation, and there was no need for the Secretary to do so. On January 5, the Attorney General, the Prime Minister, and I met with the members of the Commission, not to discuss the postponement of the election, but because there was a division within the Commission. While two members had decided to hold the election on December 23, one had not decided on a date for calling nominations, and another had a wavering view. Additionally, one of the members was in the hospital. It was at this meeting that the Attorney General made a statement.
The Attorney General instructed them to come to one decision. Then they consulted Saliya Peiris. The members told me that the Commission cannot consult an attorney who engages in politics but someone who is impartial. I said that I would not intervene in it but I am of the view that if they needed they could consult an attorney who has not engaged in party politics. But they consulted an attorney who said that the government did not have power. In my opinion, it would have been better if they had consulted an attorney from SJB or JVP.
During the formulation of the Budget proposal, the Election Commission estimated that the election would cost Rs 10 billion. However, on the 9th, they sent a letter to the Director General stating that they only required liquid cash Rs 6 billion. Despite the fact that inflation should have increased the cost. As a result, the Ministry began to investigate the estimates as the Election Commission demanded less money while the Police demanded more. The other departments have yet to submit their estimates, but funds have been allocated for the election. This was a fundamental issue. The Finance Ministry does not need to respond to them. Chief Accountant G R A K Gamalath signed on behalf of the Election Commissioner General, which no one has the authority to do.
Section 104 E 6 states that the Commission may delegate any power, duty, or function of the Commission or Commissioner-General of Elections to another officer of the Commission, who shall exercise, perform, and discharge such power, duty, or function subject to the direction and control of the Commission. They did not mention that they received authority from 104 E 6 (the Commission). On January 9, the Commissioner wrote in a letter that cash had not been provided based on their request to begin the initial steps of the election. If the cash had been provided, disciplinary action could have been taken against the officer who provided the money. The officer who sent the letter had not been given the authority to do so. If it had been provided, anyone could sue the Director General for violating human rights. He could have been punished by the Public Service Commission. The Chairman sent a letter on February 3, but in any letter, they did not mention that it was a decision of the Commission.
On February 10, it was reported that two political parties had filed cases seeking to prevent the election, but the Election Commission had already taken initial steps. However, it has been found that the Supreme Court did not make such a decision. Sanjeewa Jayawardena PC referred to a journal entry from January 18, 2023, where Saliya Peiris, President’s Counsel representing the first to fifth respondents, informed the court that the Election Commission had taken steps to call for local authority elections in accordance with the local authorities elections ordinance and would continue to do so in accordance with the law. Based on this, Peiris submitted that there was no need to issue a writ mandamus and requested that the proceedings be terminated. The petitioners themselves stated that they did not need a mandamus writ, so there was nothing for the court to do. Neripulle (PC), representing the sixth respondent, the Prime Minister, stated that no relief was sought against him, even though he was named in the petition.
According to my understanding, there is no official date set for the election yet, despite rumours that it may be on March 09. It’s important to note that according to Section 104, a quorum of three members is required for any meeting of the Commission.
On January 22, Nimal Punchihewa, the Chairman of the Election Commission, reportedly told the Sunday Times that the three commissioners had been contacted virtually via Zoom and their consent had been obtained. The 5th Commissioner, M.M. Mohommed, was present at the Commission office.
That means those two, the Chairman and M.M. Mohamed, took the decision. He said himself that he took the approval of the others. If you asked those three, they will not maintain the same view. I have proof to prove it. Then officially, they haven’t taken a decision to hold the election. So if the money was given to them, I will have to remove my Secretary and make a complaint before the Police against him. The same will happen to the Government Printer too. They all will lose their jobs.
We don’t need to postpone the election, but we don’t have money for it. If we need, we can discuss and come to a decision, but for the moment, we don’t have money. On the other hand, there is no election at hand as well. So, what have we got to do? The Commission is answerable to the Parliament. The Parliament has asked to appoint a select committee on this matter. So, I request to appoint it, record all and take the report to the Supreme Court. According to section 4 of the constitution, the financial power is vested in the Parliament. After the 1688 Revolution according to the Magna Carta Agreement, all monetary powers vested in Parliament. Therefore, give that report to the Supreme Court through a selection committee.
The funds allocated in the budget cannot be given at once. Also it is not mentioned anywhere about a specific date for these funds to be given. The allocations made by the budget should be spent by the end of the year. But that could be done only if the expected revenue is received. Otherwise, we have to seek approval from the House for the Central Bank to print money. But, according to IMF agreement we can’t print money. The other matter is that we don’t postpone an election by a circular. Officially we can’t hold an election as there was no quorum at the time of the decision was taken.
So the officials who would provide money will have to answer.
In any of them there is no direction. There cannot be made directions as there is no election. So first decide that you need an election or tell the Court that you can’t hold an election at this occasion. We have worked according to law.
We acted in accordance with the law. We have decided not to use tax funds until the Paris club agreement on debt restructuring with China and India, and a decision from the International Monetary Fund are reached.
The economy is my top priority. We will not have a country if the economy does not develop. I ask this House one question. Is it possible to keep the constitution without losing the country? Only if the country is protected can the constitution be protected.
I have also informed the Prime Minister to bring the proposal of the Select Committee on those responsible for the economic destruction proposed by the opposition in the Parliament in the 03rd week of March. The government supports it. Also, the opposition proposed to change the Election Commission. We will support that too.
President Directs Officials to travel Economy Class for official travel abroad amidst the current economic crisis
In a bid to maximize the use of government funds and ensure that resources are utilized efficiently, President’s Secretary Mr. Saman Ekanayake has issued a directive on the instructions of President Ranil Wickremesinghe, requiring officials purchasing airline tickets for official travel abroad to book Economy Class tickets.
This directive will take effect from March 1, 2023, and replaces all previous circulars and instructions related to this matter.
According to the new directive, officials such as the Hon. Chief Justice, Hon. Justices of the Supreme Court, Chairman of the Court of Appeal, and Hon. Justices of the Court of Appeal are exempt from booking Economy Class tickets. However, if an officer needs to travel Business Class, they may do so at their own expense, paying the difference between an Economy and Business Class ticket. The directive also states that exceptions to this rule require prior approval, based on sufficient justification.
The President’s directive aims to ensure that government funds are used only for essential purposes and that resources are utilized efficiently. By limiting the use of Business Class tickets, the government can save a significant amount of money while still enabling officials to travel for official purposes.
All relevant agencies and organizations under the purview of the directive, including Heads of Provincial Ministries, Departments, State Corporations, and Statutory Organizations, have been instructed to comply with the new provisions. Officials are also advised to seek prior approval if they believe they have a sufficient justification for an exception to the rule.
This directive comes amidst the current economic and financial challenges facing the country, and it is expected to help alleviate some of the pressure on government funds. It is hoped that by implementing this directive, the government can achieve its goals of financial prudence and efficient resource utilization.
President’s Media Division (PMD)
India’s troubled Adani invests in bankrupt Sri Lanka
Cash-strapped Sri Lanka on Thursday announced its first major foreign investment since it declared bankruptcy, approving a $442 million wind power project by India’s scandal-hit Adani group.
Sri Lanka’s Board of Investment said Adani Green Energy, part of the business empire of controversial Indian tycoon Gautam Adani, will set up two wind farms in the island’s north.
The total investment will reach $442 million and the two plants will be supplying power to the national grid “by 2025”, the BOI said in a statement.
The project comes after Sri Lanka awarded Adani a $700 million strategic port terminal project in Colombo in 2021.
That concession was widely seen as a bid to address New Delhi’s growing concern over China’s expanding influence in the region – Adani had been nominated as the contractor by the Indian government.
The firm is building a 1.4-kilometre, 20-metre deep jetty right next to a Chinese-operated terminal at Colombo harbour, the only deep-sea container port between Dubai and Singapore.
Energy minister Kanchana Wijesekera said he met with Adani officials in Colombo on Wednesday to finalise the wind farm project.
“We expect the power plants to be commissioned by December 2024,” he said.
The development comes after a US investment firm last month accused Adani’s companies of accounting fraud and price manipulation, triggering a rout that saw $120 billion wiped off the group’s market capitalisation.
Adani denies the allegations.
A Chinese firm was awarded a $12 million Asian Development Bank-funded project to build three wind farms on islands in the Palk Strait between India and Sri Lanka in 2019, but it was cancelled after objections from New Delhi.
China is Sri Lanka’s largest official lender, accounting for 52 percent of bilateral credit. Colombo is awaiting financial assurances from Beijing to unlock a $2.9 billion bailout from the International Monetary Fund.
ECONOMIC TIMES
Areca nut farmers prepare to hold a massive protest?
On February 24, 2023, preparations are underway to hold a massive demonstration in front of the Ministry of Commerce and the Department of Commerce.
Areca nut farmers, collectors, middlemen and non-smuggler local exporters all over the country are preparing to hold this protest. In particular, three months have passed since the export of this areca nut was stopped. Due to the huge economic crisis, the areca nut farmers and a large number of people associated with that movement have become extremely helpless.
Those people have expressed their displeasure with the current Minister of Commerce, Nalin Fernando, and the Department of Commerce, which has high-ranking corrupt officials. They are asking for support for their agitation regardless of color or party. According to the exporters, the country will lose approximately 50 million US dollars per month and 500 million dollars annually by stopping the export of Areca nuts.
They are of the opinion that this decision was taken at a time when the country does not have dollars, which is a political conspiracy.
Tourism Ministry launches ‘Travel Card as a prelude to promotion campaign
The Ministry of Tourism has launched a ‘Travel Card’ in an initiative to further promote Sri Lanka’s tourism industry as a prelude to the much-awaited tourism promotion campaign focusing on nine key markets in May this year.
A Memorandum of Understanding (MoU) was signed yesterday (21 Feb.) between the Sri Lanka Tourism Development Authority (SLTDA) and the National Development Bank (NDB).
Accordingly, those registered as various service providers to the tourism industry under the SLTDA are eligible to obtain the ‘Travel Card’, granting them access to special benefits when dealing with tourists, Tourism Minister Harin Fernando said.
He further noted that the card will be made available not only to service providers in the tourism industry, but also to those tourists visiting Sri Lanka.
The initiative is expected to enable the provision of several qualitative services within the industry, such as clear, updated statistics on the number of tourists visiting Sri Lanka, the exchanging of foreign currencies brought by tourists and ensuring that tourists are able to obtain all required goods and services in a safe manner.
As Sri Lanka is looking to bring about a renewed brand identity that will help it capture a bigger share of the global tourism market, plans are afoot to do away with the ‘So Sri Lanka’ tagline.
With the preparations underway to launch the much-awaited tourism promotion campaign focusing on nine key markets in May this year, the Sri Lanka Tourism Promotions Bureau (SLTPB) y said it is exploring the possibility of adopting a new brand identity, replacing the ‘So Sri Lanka’ tagline.
The SLTPB recently floated the tender to appoint a creative agency to develop strategies and creatives for the proposed 360-degree communication campaign.
According to the amended terms of the TOR of the tender, the creative agency is not required to retain the ‘So Sri Lanka’ tagline in the proposed campaign.
SLTPB Chairman Chalaka Gajabahu noted that the effectiveness of the ‘So Sri Lanka’ brand is rather unclear, as the country did not have an integrated communication campaign during the past decade to build the brand focus.
Until 2000, the brand focus for Sri Lanka was on its sun, sea and sand, with a beach focus. However, gradually this was shifted to other offerings such as ‘nature, culture and adventure’
The destination’s advertising theme was initially ‘a land like no other’, which was changed to ‘Sri Lanka – Wonder of Asia’ in 2012. The pillars of Variety (in seeing and being), Compactness and Authenticity served as the foundation for this phrase.
The new branding ‘So Sri Lanka’ was presented by Sri Lanka’s tourism authorities in 2018, with a focus on the adaptability and diversity of Sri Lanka’s product range (especially digital adaptability).
Under the proposed campaign, Gajabahu noted that Sri Lanka would promote the destination in nine key markets, which include the UK, Germany, France, India, China, Australia, Russia Middle East and Scandinavia, by desalinating the message that “Sri Lanka is ready to receive tourists” over a one-year period.
Commenting on the Chinese market, he said that several road shows and influence programmes are already planned for the market.
In addition, the SLTPB together with the Sri Lanka Tourism Development Authority (SLTDA) is spearheading efforts to come up with a 10-year blueprint for the tourism sector.For 2023, the government targets to attract 1.55 million tourists to earn a US $ 2.8 billion income.
Ali Sabry meets a Member of the Foreign Affairs Committee of the German Parliament
Foreign Minister Ali Sabry met Dr. Peter Ramsauer, Member of the Foreign Affairs Committee of the German Parliament in charge of bilateral relations with Sri Lanka at the Ministry of Foreign Affairs during his visit to Sri Lanka from 15 to 18 February 2023.
Discussions with the German delegation centred around further expanding the cordial relations that exist between the two countries, particularly in the context of the 70th anniversary of diplomatic relations between Sri Lanka and Germany being commemorated this year.
While appreciating Germany’s longstanding development cooperation partnership with Sri Lanka, Minister Sabry highlighted the significant contribution to the economy through the expansion of vocational training provided by the German Technical Training Institutes located across the country. The Foreign Minister welcomed the close collaboration between the two countries on several projects and reviewed progress on the “Helmut Kohl” Maternity Hospital in Galle. The two sides discussed avenues for expanding cooperation in trade & investment, tourism and parliamentary affairs. The Foreign Minister briefed the German side on current political developments in the country, including on measures taken to restore peace and stability, discussions with the IMF, and progress on debt restructuring.
Dr. Ramsauer was accompanied by the Ambassador of Germany to Sri Lanka Holger Seubert and former Member of Parliament and current Honorary Consul for Sri Lanka in Munich Dagmar Wöhrl. Senior officials of the Ministry of Foreign Affairs were also present at the meeting.
During the visit, Dr Ramsauer also paid a courtesy call on President Ranil Wickremesinghe. The visiting envoy and the delegation also met the State Minister of Foreign Affairs Tharaka Balasuriya.
Ministry of Foreign Affairs
Colombo
21 February, 2023
IMF MD says 25 percent of low income countries are with high risk “default-like”debts
The stage is set for ceremonial opening of the Global Sovereign Debt tomorrow Friday 25 on the sidelines of the G-20 finance track, and will bring in key stakeholders to discuss issues that have been impeding a timely debt restructuring process, a top official of the International Monetary Fund said.
The Global Sovereign Debt Roundtable on February 25 will be co-chaired by the IMF, the World Bank and India, which is president of G-20 countries this year.
In the eve of the roundtable meeting IMF Managing Director Kristalina Georgieva a said about 15 per cent of low-income countries are in debt distress and another 45 per cent are at high risk of debt distress. Among emerging economies, about 25 percent are at high risk and are facing “default-like” borrowing spreads,
This will be preceded by a virtual meeting on February 17. “It is basically to discuss issues that have been impeding reaching a timely debt restructuring process, and the lessons from the cases that we had in the recent past and come up with technical solutions to address these shortcomings,” Ceyla Pazarbasioglu, Director of the Strategy and Policy Review department at the IMF, told a group of reporters in Bengaluru recently.
According to her, it is mainly about processes, about standards, about definitions of key issues that will be part of the discussion.
“It’s definitely not a country specific discussion, it’s not a forum to reach any details on debt restructuring. It’s more rather, on what are the impediments, how do we identify those and what can be done to address them,” she said.
Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman have both stated that India, as G20 President, will be the voice of low-income and developing nations, and reducing
In a statement on the eve of the G20 meeting of Finance Ministers and Central Bank Governors (FMCBG), which begins in Bengaluru today Thursday 24 , International Monetary Fund (IMF) Managing Director Kristalina Georgieva said the IMF, World Bank and India’s G20 presidency will convene a new Global Sovereign Debt Roundtable to find lasting solutions to the stressed sovereign debt levels of low income nations.
“This week in Bengaluru, we will meet in person for the first time — and pave the way for creditors, both public and private, and debtor countries to work together, assess the existing shortcomings and best ways to tackle them,” she said.
“In this more shock-prone world, some emerging and developing economies will also require additional financial support. So, a well-resourced global financial safety net, with the IMF at its centre, is more important than ever,” she added.
She, however, warned that the reality is that growth is still subpar and price pressures are still too high, and after three years of shocks, too many economies and people are still hurting badly.
Georgieva said bringing inflation back to target should remain imperative for central banks. “To get there, policymakers need to stay the course on monetary tightening. Aligning fiscal and monetary policies will help. Clear communication of these policy goals is vital to avoid a sudden repricing in financial markets.”
Sri Lanka goes with wind power with India’s Adani Group in a bigway
Sri Lanka is to tap wind power in the North in a bigway following the approval given by the Board of Investment of Sri Lanka (BOI) has issued a letter of approval to India’s Adani Green Energy Limited for the two wind power plants to be set up in Mannar and Pooneryn at a total investment of US$ 442 million.
This investment of around $500 million in the power sector is significant especially at a time when SL is in poor economic shape and generation expansion plans stagnant and in disarray.
The large capacity wind power addition will come useful for reducing the power system shortfall forecasted to arise in the near future.
Now BOI approval is granted at last after much delay, these projects can be constructed on a fast-track basis as is the case in the wind industry.
Another positive factor is the ‘economy of scale’ benefit (due to large capacity) that helps to yield a competitive tariff.
The project will add 350 MW of electricity to the national grid within two years, the BOI said.
Thus, the wind power plant in Mannar will operate at a capacity of 250 MW while the wind power plant in Pooneryn will operate at a capacity of 100 MW.
The two wind power plants of 350 MW are scheduled to be commissioned in two years and accordingly, they will be added to the national grid by 2025, the BOI revealed. Furthermore, the new project will generate 1500-2000 new employment opportunities.
Industry news reports that the Adani Group have bought the design of a high-capacity wind turbine from a German organisation on an exclusive basis, and they have completed the installation of a prototype unit in India.
Sri Lankan Energy Minister Kanchana Wijesekara said on Wednesday that the progress on the renewable energy project to generate 500 MW was discussed with the Adani Green Energy officials.
In August last, the Adani Group was issued approval to start wind power projects in Pooneryn, in the country’s northeast.
At that time Adani Green Energy was issued provisional approval for two wind projects of 286 MW in Mannar and 234 MW in Pooneryn for an investment of over US$ 500 million.
Via the MoU AGEL conducted at its own cost a detailed feasibility study on the proposed project complying with existing laws of Sri Lanka, and submit the feasibility study report to the other parties for review and for acceptance.
AGEL, the renewable energy arm of the diversified Adani Group has seen a 35% year on year increase in operational capacity to 7,324 MW in India as at 31 December 2022 and is on track to complete ~ 8,300 MW, the largest in India, by end of FY23. AGEL is also the largest operational hybrid power generation capacity of 1,440 MW.
Proclamation under the Essential Public Service Act to be debated on 23 rd February
The Committee on Parliamentary Business chaired by Speaker Hon. Mahinda Yapa Abeywardena Feb-(21) decided to debate the Proclamation made by Hon. President under the Essential
Public Service Act on Thursday the 23 rd , Secretary General of Parliament Dhammika Dasanayake said.
Accordingly, the debate will be held from 9.30 am to 5.00 pm on that day, the Secretary General said.
According to the powers vested with the President in terms of the Essential Public Service Act No. 61 of 1979, this proclamation has been published in Gazette No. 2319/80 of 17 th February 2023. Accordingly, all services connected to the supply of electricity, the supply or distribution of petroleum products and fuel and health services have been declared as essential services.
Thereafter, as previously decided in the Committee on Parliamentary Business, two private member Bills, namely; Institution of Building Services Engineering & Technology of Sri Lanka (Incorporation) Bill and the Rathanatissa Peace Foundation (Incorporation) Bill are to be directed to the Legislative Standing Committee following its Second Reading.
Subsequently, the Motion at the Adjournment Time by the Opposition is scheduled from 5.00 pm to 5.30 pm.