SLPP MPs Indika Anuruddha and D. Weerasinghe have threatened two journalists who were covering Parliament yesterday (17) and seized their mobile phones. The Free Media Movement has released a statement saying that they strongly condemned the incident.
Following is the statement issued by them.
The sharp hike in interest rate to severely hit the Government most as analysts estimate one percentage increase translates to Rs. 20 billion per annum.
Maturing public debt is Rs. 2 trillion this year and 10% increase in interest rate fuels debt servicing cost by a further Rs. 20 billion per 1% hike.
Several financial analysts said that the public debt (Treasury Bills and Bonds) is estimated at Rs. 9 trillion, the average maturity of which is four and half years.
On that basis the value of such maturing public debt is Rs. 2 trillion per annum and a 10% increase in interest rate adds a Rs. 200 billion extra per annum.
This works out to Rs. 20 billion per 1% increase in interest rate. Since the policy rate hike, the interest rate has risen by 12%, they added.
On the basis of 4 and 1.2 average maturity the additional cost of debt servicing is a staggering Rs. 900 billion.
On 3 April in the tightest ever monetary policy stance the Monetary Board decided to double policy rates by 700 basis points (7%).
It justified the move saying a substantial policy response is imperative to arrest the build-up of added demand driven inflationary pressures in the economy.
Another reason for the rate hike was the escalation of adverse inflationary expectations, to provide the required impetus to stabilise the exchange rate and also to correct anomalies observed in the market interest rate structure, Central Bank said.
Since then, the benchmark 364-day Treasury Bill yields have doubled to 24% as of last week from 12% as at end March. From a year ago however it is a near five-fold increase.
“The Government is to increase taxes such as VAT and Income Tax to raise the revenue to GDP ratio.
However, any additional revenue garnered from this move gets negated due to the higher cost of debt servicing following the hike in interest rate,” analysts opined.
The next monetary policy review announcement by the Monetary Board is due on Thursday 19, Central Bank revealed. .
Some analysts expect a further tightening stance. If this happens the Government’s debt servicing cost will soar further, analysts warned.
The sharp fall in the value of the rupee helped swell the amount of outstanding loans and advances to the private sector in March, as the banks revalued their foreign currency assets and liabilities at the weaker rupee stood at the end of the month compared to a month earlier.
This gave a sudden boost to the private credit numbers stood at end-March, which otherwise had been anaemic and lacklustre, as the banks grew skittish over the deteriorating economic conditions and their consequences on their borrowers’ solvency and thereby the asset quality.
The latest private sector credit growth numbers published by the Central Bank for March showed that the licensed commercial banks’ outstanding private sector credit growth had swollen by an unprecedented Rs.478.0 billion, marking the biggest expansion in private credit in a single month
The European Union (EU) has granted Rs 60 million to the Sri Lanka Tourism Development Authority (SLTDA) to disburse among Covid-19 affected small tourism businesses in the island.
The Delegation of the European Union inSri Lanka (EU) and the Sri Lanka Tourism Development Authority (SLTDA) recently awarded the first three grants – worth Rs.1 million each – to small tourism enterprises to help them accelerate their post COVID-19 recovery and build a stronger base for growth as tourists start returning to the country.
Grants will be disbursed to up to 60 small and medium enterprises (SMEs) over the next two months, under the EU-funded ‘Tourism Resilience Project’ (TRP), the EU said.
The tourism industry has been gradually emerging from the COVID-19 pandemic, but is now being affected by the Russian invasion of Ukraine and by the ongoing crisis in the country. Many SMEs have been slow to recommence their businesses due to a lack of funding.
EU Ambassador in Sri Lanka, Denis Chaibi speaking at the event to hand over the first grants said: “Small enterprises in the tourism sector were hit the hardest by the pandemic and needed support on multiple fronts, including grant funding.
The current difficult situation in the country and Russia’s invasion of Ukraine is pushing local tourism industry yet into another phase of uncertainty.
Therefore, the EU is working together with the SLTDA to put in place a series of activities for businesses to reestablish their operations in the short term and build a stronger base for the future growth.
This includes access to finance, business incubation, and supply chain integration to help build a more resilient, sustainable, and safety conscious industry”.
SLTDA Chairperson Kimarli Fernando said: “There are over 550,000 people, directly and indirectly, engaged in the tourism industry—most of them working in SMEs and over 3 million dependent on tourism.
The EU took a proactive approach from the start of the pandemic by putting in place measures to mitigate the challenges faced by the industry.
It has supported Sri Lanka in this process, helping jointly develop a wider programme to build resilience in the industry and support the development of authentic signature experiences.”
Over 280 grant applications were received from tourism SMEs across the country and were subject to a multi-level screening process, before being shortlisted for the funding.
Several criteria were put in place to qualify, including the size of the business, the number of employees, and their plan to regrow their businesses and retain staff. SMEs were also evaluated on their commitment to environmental sustainability.
The grants are part of the EU’s 5.7 million euro (Rs.1.3 billion) investment in support of Sri Lanka’s tourism recovery after the COVID-19 pandemic.
The Tourism Resilience Project (TRP) is one of the interventions under this larger EU’s support package. Workforce and enterprise capacity-building projects are key components of the TRP project to ensure staff retention and attract back lost talent, upskilling, and foster a start-up culture in existing and new tourism destinations in the island
The Sri Lanka High Commission in Maldives organised a blood donation programme today (14.05.2022) to mark the auspicious day of Vesak.
The programme was the first ever blood donation initiative, undertaken by the Sri Lanka Mission with the active support and participation of the Sri Lankan community and was sponsored by SriLankan Airlines and Bank of Ceylon.
The one day blood donation programme was conducted at the Maldives Blood Services (Thalassemia Centre) in the Maldivian capital, Malé under the distinguished patronage of the Minister of State for Health of Maldives, Dr. Shah Abdulla Mahir and with the participation of the Mission staff, the Country Manager of SriLankan Airlines, Mr. Fawzan Fareid, the Country Manager of Bank of Ceylon, Mr. Govinda Arampath and members of the Sri Lankan community.
Speaking at the inauguration of the programme, the Maldivian State Minister of Health, Dr. Mahir conveyed the sincere appreciation of the Maldivian government to the Sri Lanka High Commission and the Sri Lankan community in Maldives for this noble endevour in organising a blood donation programme.
He highlighted the fact that there is an acute need for blood, not only for surgeries in hospitals but also for the considerable number of Thalassemia patients, who require regular blood transfusions, which is a matter of survival for them.
Delivering the welcome remarks, the Sri Lanka High Commissioner, A.M.J. Sadiq thanked State Minister Dr. Mahir for his presence and patronage of the blood donation programme at short notice and stated that the event had been organised as a gesture of goodwill and friendship by the Sri Lankan community towards the Maldivian people. He thanked the members of the Sri Lankan community and well-wishers who had volunteered to donate blood on the occasion to mark Vesak, signifying the Birth, Enlightment and Passing away (Nirvana) of Lord Buddha. He also thanked the Country Managers of SriLankan Airlines and Bank of Ceylon, Malé, for their sponsorship of the programme. The two Country Managers in their brief remarks, pledged their continued support to the Sri Lanka High Commission in all future community related activities too.
The event was a resounding success and had to be extended beyond the scheduled closing time to accommodate the 65 volunteers who donated blood, far in excess of the 40 volunteers who had signed up for the programme.
Sri Lanka High Commission
Malé
Maldives
17 May, 2022
The International Bar Association’s Human Rights Institute (IBAHRI)and the Bar Human Rights Committee of England & Wales (BHRC) have issued an open letter to United Kingdom Foreign Secretary, Liz Truss, in support of the Bar Association of Sri Lanka (BASL) urging Sri Lankan authorities to commence ‘an open and genuine dialogue with peaceful protesters, human rights defenders and civil society’ to promote the rule of law as the economic crisis and unrest deepens in Sri Lanka.
Reports indicate that to date nine people have been killed and more than 200 people have been injured in Sri Lanka during anti-government protests.
The below letter calls on the UK Government to defend human rights and democracy in Sri Lanka.
Dear Foreign Secretary,
We are writing on behalf of the Bar Human Rights Committee of England & Wales (BHRC) and the International Bar Association’s Human Rights Institute (IBAHRI) to raise our concerns about the serious threat to human rights and the rule of law in Sri Lanka, to raise awareness as necessary and seek an inter-governmental response. [1]
Since gaining independence in 1948 Sri Lanka and Britain have maintained strong ties and mutual respect. Britain’s diplomatic and political intervention at this most troubling of times is needed urgently. Mass protests by the public are intensifying and calls are being made for the resignations of both the President and the Prime Minister, and indeed, there is a breakdown of confidence in the leadership being provided by Parliament as a whole.
Britain must send a firm message defending democracy, human rights and openness, and supporting those working towards those objectives. The Sri Lankan government must be urged to commence an open and genuine dialogue with peaceful protesters, human rights defenders and civil society on political reforms. There is strong evidence that Sri Lanka is not currently a functioning democracy. [2]
We draw your attention to the following in particular:
On 23 April 2022, the Bar Association of Sri Lanka (BASL) took the highly unusual step of publishing a detailed and far-reaching blueprint for restoring political and economic stability in the country [3]. In doing so they have highlighted the intense cost of living crisis and shortages of essential goods. The extensive nature of the proposals, including a timetable for a caretaker government to oversee elections, illustrates the desperate situation that prevails in Sri Lanka. [4] We are most concerned to note what is referred to as ‘the lack of meaningful Parliamentary oversight over the Executive especially after the enactment of the 20th amendment to the Constitution, allegations of lack of accountability and transparency and the perception of the existence of rampant corruption [that] have led to the present political unrest.’
BASL identifies the importance of strengthening institutions and their independence from political interference and that people are demanding a ‘system change’, a ‘just and equitable governance through strong, independent institutions; constitutional safeguards and appropriate laws and regulations to eradicate corruption and nepotism’ to promote the rule of law.
Parliament enacted the 20th amendment to the Constitution on 22 October 2020. It ‘changes the balance of power among the different branches of Government, vastly expanding the scope of presidential and executive powers and reversing many democratic gains’ [5] introduced by the 19th. The UN High Commissioner for Human Rights (UNHCHR) has expressed concern that this amendment ‘fundamentally eroded the independence of key commissions and institutions, including the Human Rights Commission, the Election Commission, the National Police Commission and the judiciary, in terms of procedure for the selection, appointment and dismissal of senior judges and other high-ranking officials.’
In November 2021, the Global Alliance of National Human Rights Institutions (GANHRI) recommended that the Human Rights Commission of Sri Lanka be downgraded from A to B status for lack of a transparent and independent appointment process, lack of plurality and diversity, and its failure to effectively and independently exercise its human rights mandate. [6]
BASL proposes that there must be immediate constitutional amendment by repealing the 20th amendment and restoring the 19thamendment in order to re-establish the Constitutional Council and Independent Commissions that existed under that amendment.
BHRC has also received credible reports of human rights violations by the police against protesters.
On 31 March 2022 hundreds of people gathered in front of the President’s residence, demanding his resignation over his handling of the crisis. Security forces responded by firing teargas and water cannon to disperse the crowd. Ensuing clashes left 50 people injured. UN experts have condemned the use of such measures which seem ‘aimed at discouraging or preventing peaceful protests’. They urged the government to allow students, human rights defenders and others to protest peacefully, and share their views online and offline. [7]
On 19 April 2022 the police shot at unarmed protesters, killing one and injuring others. Evidence given at inquest proceedings has been shared with BHRC by a senior lawyer (Presidential Counsel) and former Chair of BASL, who is acting for the victims of this incident. His account makes for alarming reading. Eyewitness evidence is that the deceased was shot by a police officer in the stomach from a range of 10 metres following instructions from a senior police officer. This was denied by the police.
On 27 April 2022 the magistrate in charge of the inquest concluded that the death of the protester was homicide. She has also ordered that the suspects be arrested and produced at court. She has made a raft of orders securing evidence.
On 24 April BASL issued a statement noting the heavy police presence at a further protest in Colombo. Barricades fitted with spikes have been used raising concerns about injuries to citizens. BASL call upon the Government and the IGP and all police officers and armed forces to act with restraint: ‘They are duty bound to ensure the safety of the protesters and the public and the right of people to dissent in a peaceful manner and also the freedom of movement of the citizen.’
Sri Lanka has been the repeated focus of severe criticism by the UNHCHR and leading NGOs for its lack of accountability for past human rights violations and the adequacy of domestic mechanisms for addressing the same.[8] On 25 February 2022 the UNHCHR issued a further critical report on Sri Lanka documenting an alarming decline in human rights. BASL has additionally proposed a number of steps to deal with the substance of these criticisms.
We look forward to hearing from you on the steps being taken by the British Government to respond to the serious break down of Parliamentary process, the rule of law and human rights violations in Sri Lanka. We would be happy to arrange a meeting between you, and your official, and members of the BHRC and IBAHRI, as appropriate, for a private discussion on these issues.
[1] Please note this is a public letter and will be published on our website.
[2] On 7 April 2022 the Bar Association of Sri Lanka issued a statement raising serious governance issues within Parliament (Government and Opposition) which were obstructing proper responses to the intensifying crisis including food shortages and power outages. The Opposition finally moved for a vote of no-confidence in Parliament on 6 May 2022 which failed to garner the majority vote needed to succeed.
[3] On 25 March 2022 BASL filed two fundamental rights applications in the Supreme Court as ‘People of Sri Lanka’ seeking remedial orders from the Court citing the right to equality, equal protection of the law and the right to life under the Constitution, and the real and grave threat to law and order, and the rule of law.
[4] On 19 April 2022 a group styling themselves ‘Direction Sri Lanka, Independent Professionals for the Nation’ issued a statement with proposals in view of the escalating situation leading to a potential breakdown in the rule of law and a state of anarchy, and immediate action to be taken within the Constitution including the resignation of the President, and Prime Minister.
[5] Para 24, Report of the UNHCHR Promoting reconciliation, accountability and human rights in Sri Lanka, OHCHR Report February 2021, A HRC/46/20
[6] GANHRI Sub-Committee on Accreditation Report – October 2021, December 2021, page 31 www.ohchr.org/Documents/Countries/NHRI/GANHRI/SCA-Report-October-2021_E.pdf.
[7] https://news.un.org/en/story/2022/04/1115942
[8] BHRC and IBAHRI issued a joint statement on 5 March 2021 [https://barhumanrights.org.uk/sri-lanka-accountability-for-past-human-rights-violations-and-adequacy-of-domestic-mechanisms/] setting out our concerns.
Stephen Cragg QC
Chair, Bar Human Rights Committee of England & Wales
Baroness Helena Kennedy QC
Director, International Bar Association’s Human Rights Institute (IBAHRI)
END OF THE LETTER
Hospital authorities are grappling with a serious crisis due to the absence of anticoagulants used for blood gas analysers in the Intensive Care Units (ICU) and High-Dependency Care Units (HDU) of hospitals across the country, leading to a potential closure of these two most critical units.
The use of blood gas analysers is essential to save the lives of those critically ill and it would be futile to run ICUs and HDUs without them, hospital authorities pointed out.
The companies that supply reactors required for blood gas analyses have not yet been paid for the supplies for the last four months, according to reports. These companies, therefore, have decided to halt the supply until the relevant payments are made. Over Rs. 300 million have to be settled for these companies, reports added.
Meanwhile, reports also claimed that some supply chains have gone bankrupt due to non-payment for supplies made to the Health Ministry. Health authorities are not working to even temporarily remedy the problem, companymen grieved.
Following the previous Rajapaksa-led regime’s fall, the Ministry of Health is running short of a minister and Prime Minister Wickremesinghe recently appointed UNP Deputy Leader Ruwan Wijewardena to look into the shortage of medicines. The matter, nevertheless, is yet to be addressed.
MIAP
The Ceylon Petroleum Corporation (CEYPETCO) has informed the public not to queue up for petrol near fuel stations tomorrow (18), mainly due to stocks being run out and the limited issuance of fuel.
However, the distribution of petrol will continue the usual from May 19, it added.
MIAP
Essential services will be prioritised for fuel distribution due to the ongoing fuel crisis in the country. Accordingly, selected sectors, including health and agriculture will be prioritised in fuel distribution.
The priority being set in motion, selected fuel stations in every district will be given fuel stocks, effective from today (17).
Accordingly, fuel refiling stations reserved for essential services will be administered by the district secretary of each district, announced the Commissioner General for Essential Services.
MIAP
Ruling Party Milan Jayathilake has been arrested by the Criminal Investigation Department (CID) in alleged connection with the brutal assault launched on the peaceful protests held in Galleface on May 09.
MIAP
Ruling Party MP Sanath Nishantha has been arrested by the Criminal Investigation Department (CID) a short while ago.
He was arrested in alleged connection with the brutal assault on the Galleface protest on May 09.
MIAP
