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Letter to Prime Minister Ranil Wickremesinghe

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Letter to Prime Minister Ranil Wickremesinghe

Prime Minister,

As I watched you take oaths at the Presidential Secretariat, my mind was drawn to the last time you did so, on 16 December 2018, on day 52 of the 52-day coup plot that was mounted against Lankan democracy. On that Sunday morning, you were flanked by your wife, Dr. Maithri Wickremasinghe and several senior opposition MPs in what still feels like the finest hour in the history of our constitutional democracy.
Several political parties rallied around you, putting the constitution before party politics and personal grievances. There was no doubt in anyone’s mind that your side was the side of right, and the side of democracy.

On the three previous occasions when you took oaths as Prime Minister, you did so with a strong mandate, after conclusive electoral victories. Consequently, these swearing in ceremonies were celebrative affairs, accompanied by the air of hope your mandate deserved.

So, it was with a heavy heart I watched you being sworn in last week before President Gotabaya Rajapaksa in a dark, empty room. I imagined to myself how different it would have been if this fifth swearing in ceremony had better resembled your previous ones. There were no cheering crowds, because you had won no election, had recieved no mandate to govern.

Given the Rajapaksa family history of power hunger, bloodlust and greed, coupled with the demands of the national protest movement, Sajith Premadasa drew a line in the sand and refused the premiership under a Rajapaksa presidency. Whether he did so on principle, or out of fear of taking on so great a challenge, I cannot say. The fact that you have risen to the moment and taken on the most difficult job in the country is thus admirable.

If you are to succeed, you can only do so by unifying and integrating, not by dividing and conquering. No one can minimize the series of political masterstrokes by which you navigated from a personal electoral defeat in your traditional bastion of Colombo, to entering Parliament on the UNPs single national list seat, to ascending to the premiership. However, you will be judged not on your personal achievement in ascending to power, but by what you do with that power to serve the country.

As it stands, your cabinet is set to be comprised primarily of members of the Podujana Peramuna alliance including the SLFP. I don’t need to remind you that these are the same people responsible for putting Sri Lanka into this mess in the first place.

Indeed, the majority of those who have come out in support of your premiership to date are the very same people who fought to make Gotabaya Rajapaksa president. They argued that the country needed to be saved by him, from you and your policies. For you to succeed, you will need to build a wider base of support that reaches beyond such self-serving hypocrites, who would be eager to sabotage you no sooner they need a fresh scapegoat.

This kind of inconsistency, hypocrisy and insincerity has ruled our politics for generations, and people are sick and tired of it. The people are closely watching, still trying to decide whether you were brought in to serve Sri Lankans or to serve Rajapaksas. Although you may be tempted to peel off weak-willed opposition members to join you in exchange for ministries and perks, remember that if you weaken the opposition, you will further strengthen the Rajapaksas.

To put the country right and establish the credibility and legitimacy of your premiership, you need the sharpest knives in the drawer, in particular Eran Wickremaratne, Harsha De Silva and Champika Ranawaka. You need the firm political foresight of veterans like Rajitha Senaratne, Thalatha Athukorale and Ranjit Maddumabandara, the fire of more younger members like Rohini Wijeratne and Shankyan Rasamanikkam. You would benefit from the legal and constitutional prowess of M.A. Sumanthiran, and the discipline and organisational capacties of Anura Dissanayake and others of the JVP.

But the support of such serious people cannot be secured through ‘deal’ politics. There is no doubting your mastery of such negotiations and maneuvering. For the sake of the country, you should use those skills to secure desperately needed relief for our people, and not wield them as a weapon against the parties in Parliament who are fighting on behalf of the people to defeat the Rajapaksas.

Especially now that the SJB has offered to support your government on the very reasonable condition that you not try to splinter their party from within, I would urge you to accept their offer gracefully, regardless of any rivalry between yourself and their leader. In asking you to do so for the sake of the country, I must remind you of our shared history. It was no secret that Sajith Premadasa was extremely unhappy under your leadership of the UNP. He had spoken openly against you, and your personal grievances were an open secret when the coup started in 2018.

Despite that, you know as well as I do how ferociously and tirelessly Sajith Premadasa fought on your behalf during the 52-day coup. Sajith consistently refused overtures to become premier. Instead, he remained loyal to you and loyal to the UNP. He respected the constitutional requirement that a prime minister must command a majority in parliament by the time of his appointment, and he refused to backstab you and try to coral a majority together using state office as an inducement.

As you know, on the several occasions that Sajith and I went to meet President Sirisena, he argued with the president on your behalf. He did this not necessarily because he liked you. I believe he did so on principle, and that he did it because it was the right thing to do for democracy.

Whatever bad blood exists between you, as the more senior politician and now as Prime Minister, you will be expected to rise above the temptation to keep playing chess against Premadasa. The people do not want you in combat with each other. They want all right-thinking MPs to alleviate their suffering, and ensure they are never again choked under the jackboot of Medamulana tyranny.

There were always three contenders to replace Mahinda Rajapaksa. They were Premadasa, Karu Jayasuriya and yourself. You can still bring legitimacy to your government by engaging with them, and the leadership of other opposition parties. You should share with them your plan to govern, to resolve our economic, political and humanitarian crises. As Prime Minister, you can be the bigger person and get Sajith Premadasa and other key stakeholders into a room and chart the path forward, in a way that gives you the benefit of the expertise and judgment that you are unlikely to find in your cabinet if it is comprised of the SLPP, SLFP and a few opposition members who can be bought for perks. Even if you cannot meet personally, set up a mechanism to keep the opposition in loop. Keep them informed of what you are doing and get their feedback and opinions. Such a give and take is what the country needs, what you need in this fateful moment.

It is essential for the country that your government wins the legitimacy of opposition support and is not seen as a Rajapaksa clone. The most tragic way for your fifth premiership to go down in history would be for it to be perceived as you having effectively done to Sajith Premadasa what Mahinda Rajapaksa did to you during the coup.

Your speech today, which was simple, direct and logical, made it clear that you understand that this will be the greatest challenge Sri Lanka and you have ever faced. Indeed it is doubtful if anyone else would have had the knowledge and more importantly the compulsion to reveal to our people the true predicament of our country.  The likes of Cabraal would have on the other hand continued to hoodwink one and all. For this we have to thank the protesters. This is an important fact that everyone in the government must not forget. I hope all politicians would have by now clearly understood that deceit and arrogance will not be tolerated by the public anymore.  It’s time that everyone realises that If we do the same thing over and over again we will get the same result.  I hope you will do things differently.  I hope and pray that you succeed in uniting the country and delivering the relief and reform that our people so desperately need and so richly deserve.

Yours sincerely,
Krishantha Prasad Cooray

Somalia’s new president elected by 327 people

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Somalia’s former leader Hassan Sheikh Mohamud has been elected president after a final vote that was only open to the country’s MPs.

He defeated the current president, Mohamed Abudallahi Farmajo, who has been in office since 2017.

The ballot was limited to Somalia’s 328 MPs due to security concerns over holding a wider election, and one of them did not cast a vote.

Mr Mohamud received 214 votes, defeating Mr Farmajo who won 110 votes.

Three MPs are reported to have spoiled their ballots.

The unusual circumstances highlight Somalia’s security issues as well as the lack of democratic accountability.

The result marks a comeback for Hassan Sheikh Mohamud, who served as Somalia’s president between 2012 and 2017 before he was defeated by Mr Farmajo.

The elections – which were hotly contested and went to a third round – were delayed for almost 15 months due to infighting and security issues.

Mr Mohamud was sworn in shortly after the final results were announced, prompting supporters in the capital to cheer and fire guns into the air. He will serve for the next four years.

In the vote on Sunday, hundreds of parliamentarians cast their ballots at a fortified aircraft hangar in the capital Mogadishu.

Explosions could be heard nearby as voting was taking place, but police said no casualties were reported.

As the incoming president, Mr Mohamud will have to deal with the impact of an ongoing drought in which the UN says 3.5 million Somalis are at risk of severe famine.

But the big task he faces is to wrest control of much of Somalia from al-Shabab. The al-Qaeda-linked Islamist militant group continues to dominate large parts of the country and carries out frequent attacks in Mogadishu and elsewhere.

The country is also being affected by food and fuel inflation sparked by the war in Ukraine.

Why Somalia’s election matters

The government is backed in its fight against al-Shabab by the African Union, in the shape of some 18,000 troops and the United Nations.

The instability is one of the reasons why Somalia has been unable to hold direct elections. Somalia has not had a one-person-one-vote democratic election since 1969.

That vote was followed by a coup, dictatorship and conflict involving clan militias and Islamist extremists.

This is only the third time that the indirect election for president has been able to take place in Somalia itself. Previous ones were held in neighbouring Kenya and Djibouti.

How did the voting work?

MPs waiting to vote
Image caption, Voting took place in an airport hangar on Sunday

This vote was supposed to have happened last year when Mr Farmajo’s four-year term ended. But political differences and instability delayed the poll and the president remained in power.

The MPs who chose the new president were themselves elected by delegates nominated by the country’s powerful clans.

They gathered in a large airport hangar in the well-guarded Halane Camp. This is the main military base of the AU’s mission in Somalia (Atmis), as well as the home of diplomatic missions and aid agencies.

The voting, done by secret ballot, was delayed for hours due to lengthy security checks.

Past elections were marred by allegations of vote-buying with candidates reportedly offering money in exchange for support.

The only female candidate, former Foreign Minister Fawzia Yusuf Adam, was eliminated in the first round of voting.

What has al-Shabab said?

In previous elections, al-Shabab threatened and even kidnapped clan elders after condemning them for participating in what it saw as an un-Islamic poll.

This time around, its response to the elections has been more muted, with fears that its members or sympathisers may have secretly sought parliamentary seats in a bid to undermine the system from within.

The fear was publicly expressed by neighbouring Djibouti’s President Omar Guelleh in 2020, when he was quoted as saying: “I fear we will end up with a parliament indirectly controlled by al-Shabab because they’ll have bought the support of some of the MPs.”

Some analysts felt Mr Guelleh was exaggerating the possibility of al-Shabab gaining a foothold in parliament, but there is no doubt that it is a major political force in Somalia.

BBC

Amid economic uncertainty, Pakistan to start review talks with IMF in Doha tomorrow

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ISLAMABAD: Pakistan is scheduled to start review talks with the International Monetary Fund (IMF) to strike a staff-level agreement for the release of a $1 billion tranche under the Extended Fund Facility (EFF), reported The News on Tuesday. 

The review talks will take place from Wednesday (tomorrow) in Doha and will continue for a week. 

Islamabad will have to convince the IMF to revive the stalled $6 billion programme at a time when the government had not started eliminating the unfunded fuel subsidy after making a commitment with the IMF.

The government may offer to withdraw the unfunded fuel subsidy if it is able to strike a consensus among the coalition partners. “We want to use it as a bargaining chip because we know that the IMF staff always stressed doing more. It is part of a strategy to move ahead if the IMF seems in a mood to move ahead,” a top official said.

The IMF is all set to ask policymakers for further tightening of fiscal and monetary policies. It will recommend taking additional taxation measures in the upcoming budget. The IMF has asked Islamabad to jack up the FBR’s tax collection target of Rs7,255 billion for the next budget of 2022-23 against the desired target of Rs6,100 billion for the current fiscal year. The IMF is also recommending further jacking up the policy rate by 100 to 150 basis points in the coming monetary policy.

The work done by the Ministry of Petroleum shows that the price differential claims (PDCs) were estimated to cost Rs118.6 billion in May 2022, including Rs55.48 billion for the first fortnight from May 1 to 15, 2022, and projected another Rs63.32 billion for the second half of fortnight from May 16 to 31, 2022.

For the next 15 days, there will be PDC claims of Rs37 per litre on MS petrol, Rs78.55 per litre on high-speed diesel, and kerosene at Rs50.89 per litre, and light diesel oil at Rs71.06 per litre with effect from May 16, 2022.

“Pakistan’s delegation, led by secretary finance, will hold parleys with the IMF review mission, and after completion of the first round of technical talks, Minister for Finance Miftah Ismail is also expected to join the team in policy-level discussions. These talks will kick-start on May 18 and will last till May 25, 2022 in Doha,” top official sources confirmed with The News.

The official said that Pakistan’s negotiating team will comprise the Ministry of Finance, Federal Board of Revenue, and State Bank of Pakistan, including Secretary Finance, Additional Secretary, Ministry of Finance, External, Additional Secretary Budget, Additional Secretary C&F, Acting Governor SBP, and Deputy Governor, chairman FBR and Members IRS and Customs Policy Wings. Some officials of the Ministry of Energy and Power will join the meeting on zoom.

In the wake of dwindling foreign currency reserves and depreciation of the exchange rate, the government desperately requires the IMF backing in order to avert a balance of payment crisis. The foreign reserves held by the SBP were depleted by over $6 billion and touched $10.3 billion on May 6, 2022.

When contacted on Monday, the IMF resident chief in Pakistan said: “We remain continuously engaged with the authorities on policies to promote macroeconomic stability in Pakistan. An International Monetary Fund team will start a staff mission on May 18 with the Pakistani authorities in Doha.”

Geo News

Distribution of Diesel resumes, petrol drops to 10% (VIDEO)

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With the arrival of a ship carrying diesel yesterday, the distribution of diesel will be carried out islandwide, revealed Shantha Silva, Co-Secretary of the Ceylon Petroleum Private Tank Owners Association, speaking to media today (17).

Accordingly, diesel will be supplied to every fuel station in the country, he went on, adding that the distribution of petrol, nevertheless, has been dropped down to about 10 per cent due to the shortage since yesterday.

MIAP

Lesson SLPP given to RW via election of Deputy Speaker

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Ruling Party MP Ajith Rajapaksa was elected as the Deputy Speaker of Parliament with a majority vote today. The event itself is a lesson for Prime Minister Ranil Wickremesinghe to learn according to political analysts.

Wickremesinghe had been of the opinion that it would be best to elect a woman MP for the post of Deputy Speaker this time, leading to the nomination of Samagi Jana Balawegaya (SJB) MP Rohini Kaviratne. Her nomination was made public days before the Parliament sitting and despite the same move being expected from the Sri Lanka Podujana Peramuna (SLPP) the Ruling Party, talks surfaced in the political arena that Kaviratne should be appointed in the position without calling in a vote.

However, the SLPP, ignoring Wickremesinghe’s request to elect a woman MP, had nominated a man, surprisingly representing the Hambantota District and carrying the infamous Rajapaksa name. Ajith Rajapaksa was given the job at a majority vote, once again depicting the misogynist culture in the Sri Lankan Parliament.

Simply put, the SLPP has clearly given a message to Wickremesinghe, reminding him that they, the Pohottu Clan, can wash away their sins at any given time and even oust Wickremesinghe, if they want to!

It is a widely perceived notion that the puppeteer who is pulling the strings in Parliament to switch MPs from one party to another is none other than Basil Rajapaksa, the brain of the SLPP.

Accordingly, none can ignore the fact that this has also happened under Basil’s watch.

SLPP MP elected as Deputy Speaker

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SLPP MP Ajith Rajapaksa has been elected as the Deputy Speaker of Parliament with a majority of 31 votes.

Two MPs were nominated for the post, SJB MP Rohini Kaviratne whose name was nominated by Leader of the Opposition Sajith Premadasa and seconded by SJB MP Lakshman Kiriella and SLPP MP Ajith Rajapaksa whose name was nominated by Minister G.L. Peiris and seconded by SLPP MP Samanpriya Herath.

As the voting has taken thereafter, Rajapaksa secured 109 votes and Kaviratne, 78 votes.

MIAP

Sri Lanka’s export earnings declined by 3.4 percent in March 2021

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Sri Lanka’s economic crisis is a prevailing issue for the island nation since 2019, and it has been putting pressure on the Sri Lankan government to reform the country’s situation with the upcoming challenges on the way. 

Increasing debts, depleting foreign exchange reserves and other factors contributed to the decline of the Sri Lankan economy, economic analyts revealed. 

Parallel to the decline in Sri Lanka’s economy, Sri Lanka trade in 2022 also recorded a decline. The latest Sri Lanka import-export data 2022 revealed the trade values of the South Asian country going downhill. However, the upward trend was similar to the year preceding (2021).

Sri Lanka’s exports amounted to US $4.5 billion in the first quarter of 2021, followed by $2.9 billion in the second quarter, and $3.5 billion in the third quarter. The final quarter of 2021 amounted to $4.2 billion. The first quarter of 2022 accounted for the lowest value among all at $2.4 billion.

Earnings from merchandise exports in March 2022 declined by 3.4 per cent over March 2021 to reach US dollars 1,057 million. A decrease in earnings was observed in agricultural exports and mineral exports, while an increase was recorded in industrial exports, The Central Bank announced  

The cumulative export earnings increased by 9.0 per cent during January-March 2022 over the same period of the last year, amounting to US dollars 3,249 million. Industrial exports: Earnings from the export of industrial goods increased in March 2022 by 2.9 per cent, compared to March 2021. 

This was mainly due to the increase in earnings from export of petroleum products and gems, diamonds and jewellery (mainly gems). Earnings from the export of petroleum products improved due to the increase in both prices of bunker and aviation fuel exports and volume of aviation exports. 

Further, a sizable increase was recorded in the exports of base metals and articles (mainly lead and aluminium and articles thereof), leather, travel goods and footwear (mainly footwear), transport equipment (mainly cruise ships) and animal fodder (mainly poultry feed). 

However, a decline in earnings was reported in the categories of rubber products (mainly household rubber gloves), food, beverages, and tobacco (mainly smoking tobacco, animal or vegetable fats and oils and coconut milk powder), textiles (mainly yarn), printing industry products (mainly currency notes), plastics and articles (mainly plastic sacks and bags), chemical products and ceramic products. 

Export of garments to most major markets improved, though a marginal decline was observed in garment exports. Agricultural exports: Total earnings from the exports of agricultural goods in March 2022 declined by 22.6 per cent, compared to March 2021, with a broad-based decrease in export earnings in all subcategories driven by lower volumes. 

The export earnings from tea declined significantly by 24.0 per cent (y-o-y), due to the decline in both volume and price of tea exported. Earnings from spices declined by 39.8 per cent (y-o-y) in March 2022 due to lower export volume of cinnamon, pepper and cloves. 

Mineral exports: Earnings from mineral exports decreased by 57.1 per cent in March 2022, compared to March 2021, due to a decline in export earnings from titanium ores categorised under ores, slag and ash.

Sri Lanka down to last day of petrol, new prime minister says

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Sri Lanka’s new prime minister says the country is down to its last day of petrol as it faces its worst economic crisis in more than 70 years.

In a televised address, Ranil Wickremesinghe said the nation urgently needs $75m (£60.8m) of foreign currency in the next few days to pay for essential imports.

He said the central bank will have to print money to pay government wages.

Mr Wickremesinghe also said state-owned Sri Lankan Airlines may be privatised. 

The island nation’s economy has been has been hit hard by the pandemic, rising energy prices and populist tax cuts. A chronic shortage of foreign currency and soaring inflation had led to a severe shortage of medicines, fuel and other essentials. 

In the capital Colombo, auto rickshaws, the most popular means of transport in the city, and other vehicles have been queuing at petrol stations.

“At the moment, we only have petrol stocks for a single day. The next couple of months will be the most difficult ones of our lives,” Mr Wickremesinghe, who was appointed prime minister on Thursday, said.

However, shipments of petrol and diesel using a credit line with India could provide fuel supplies in the next few days, he added.

Mr Wickremesinghe said the country’s central bank would have to print money to help meet the government’s wage bill and other commitments.

“Against my own wishes, I am compelled to permit printing money in order to pay state-sector employees and to pay for essential goods and services. However, we must remember that printing money leads to the depreciation of the rupee” he said.

He also proposed selling off Sri Lankan Airlines as part of efforts to stabilise the nation’s finances. The carrier lost 45 billion Sri Lankan rupees ($129.5m; £105m) in the year ending March 2021.

In recent weeks, there have been large, sometimes violent, protests against President Gotabaya Rajapaksa and his family.

Last week, the president’s elder brother Mahinda resigned as prime minister after government supporters clashed with protesters. Nine people died and more than 300 were wounded in the violence. 

On Friday, Mr Wickremesinghe told the BBC, that the economic crisis is “going to get worse before it gets better”. 

In his first interview since taking office, he also pledged to ensure families would get three meals a day.

Appealing to the world for more financial help, he said “there won’t be a hunger crisis, we will find food”.

By Peter Hoskins

Business reporter

BBC

Vote begins to appoint Deputy Speaker

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Voting has now begun in the wake of the nominations of Rohini Kaviratne of the Samagi Jana Balawegaya and Ajith Rajapaksa of the Sri Lanka Podu Jana Peramuna for the post of Deputy Speaker of Parliament.

Several parties have suggested that party leaders to convene and present only one name without increasing the public’s displeasure with Parliament, but this was not approved by Speaker Mahinda Yapa Abeywardena.

However, the Sri Lanka Freedom Party led by Maithripala Sirisena and 10 smaller parties, led by Wimal Weerawansa, have already stated that they will abstain from voting if an election is held.

National fiscal plan of “Way forward” comes into force 

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The Sri Lanka new administration  headed by newly appointed Prime Minister Ranil Wickremasighe has a challenging task of implementing the required policy measures and structural reforms to improve the fiscal performance, finance ministry sources said.  .

The ministry has already devised a fiscal plan of “Way forward” to operationalise necessary measures to build the credibility of the economy on a sustained basis.

It has suggested a holistic national effort, with the participation and ownership of all stakeholders including citizens, political entities, the civil service, and private sector, among others. 

The three-fold:plan included the reduction of  the fiscal deficit to an optimal level, engaging of  bilateral and multilateral lenders to secure bridge financing, and minimising Central Bank financing while mobilising other domestic resources within an appropriate real interest rate environment.

Sri Lanka is projecting total revenues to go up to Rs 2.27 trIllion in 2022 from Rs1.,55 trillion in 2021, finance ministry macro models and financial records revealed. 

Recurrent spending will increase to Rs. 2.99 trillion in 2022 from Rs 2.81 trillion. The current account deficit is projected to.come down to Rs.  772 billion in 2022 from Rs. 1,,26 trillion in 2021. 

Under this fiscal position, cost-based pricing for public utilities and the energy sector will have to be implemented,with social safety nets to support vulnerable segments of society, the policy planning document indicated.

The required reforms to restore fiscal sustainability, institutional capacity, and macroeconomic stability must be sustained beyond an IMF programme, and this requires broad based ownership of such reforms. 

The immediate priority of the Government is to regain debt sustainability. This will have to be done through a two-pronged approach, which includes a) Reprofiling the debt stock with technical expertise from legal and financial advisors, and b) Fiscal consolidation measures underpinned by an IMF programme.

Sri Lanka has already experienced the adverse outcomes of failing to implement these reforms in the past, the finance ministry fiscal policy plan observed. 

Hence, it is vital that Sri Lanka uses this turbulent situation as an opportunity to undertake difficult but much needed reforms to address the longstanding macroeconomic issues and lay a strong foundation to create a modern and robust economy for future generations to come , ministry  emphasised.  –