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
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 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 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’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
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.
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. –
It is reported that two more persons have been arrested yesterday (16) in connection with the attack on the Galle Face protest site.
The CID has arrested Amal Silva, a former member of the Western Provincial Council and another municipal employee.
Earlier, a Moratuwa Municipal Council employee had been arrested in connection with the incident.
Prime Minister Ranil Wickremesinghe says the next few months will be the most difficult period for Sri Lankans.
He said there was no alternative but to print money to pay the salaries of public servants this month and the rupee would depreciate further during printing.
He also said that there was a shortage of medicines for heart patients, including equipment for surgeries, adding that there was a shortage of 14 essential medicines and it was unfortunate that the Medical Supplies Division was not able to supply at least two of them at present.
He said those two drugs were, one given to heart patients and the second is a rabies drug and that there was no alternative medicine for rabies drug.
Following is the full text of the Prime Minister’s address to the nation.
According to political sources, Rohini Kaviratne, who has been nominated by the Samagi Jana Balawegaya for the post of Deputy Speaker of Parliament, will be elected unopposed.
Hambantota District Parliamentarian Ajith Rajapaksa from the SLPP had previously stated that he would run for the post. If so, a vote will have to be taken for the post of Deputy Speaker.
However, no election will be held in Parliament today (17) and Rohini Kaviratne will be elected unopposed to the relevant post, sources said.
