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SJB and SLPP nominate candidates for the vacant post of Deputy Speaker

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Samagi Jana Balawegaya has announced that it will nominate MP Rohini Kaviratne for the vacant post of Deputy Speaker of Parliament.

Meanwhile, Hambantota District Parliamentarian Ajith Rajapaksa from the SLPP will be nominated for the post, the General Secretary of the party Sagara Kariyawasam has stated to the media.

Accordingly, if candidates from both parties are nominated, a vote will have to be taken in the Parliament on the morning of May 17.

The next few weeks are going to be the hardest – Ranil

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The new Prime Minister Ranil Wickremesinghe says that the most difficult period of the Sri Lankan economy will dawn in the next few weeks. The Prime Minister is scheduled to make a special statement in this regard today (15).

“The next few weeks will be the hardest for us. I hope to make a statement about that tomorrow (15). Due to the economic problems prevailing in this country, a young voice has been created. Gotagogama is the symbol of this young voice. We will not remove Gotagogama. We will protect it ”

Wickremasinghe was speaking to the media after several diplomatic discussions yesterday (14).

Formation of a non-partisan government: Sajith responds to Ranil’s invitation

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Opposition Leader Sajith Premadasa has responded to a written invitation from Prime Minister Ranil Wickremesinghe to form a non-partisan government that goes beyond traditional parliamentary politics.

The Leader of the Opposition has stated that there is no change in the position of his party in this regard as the people want a government without the Rajapaksas.

However, Sajith Premadasathen has stated in his letter that he is ready to support the correct decisions taken by the government as a responsible opposition to solve the economic problems faced by the people.

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President asks IGP to resign

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It is reported that President Gotabhaya Rajapaksa has asked IGP C.D. Wickramaratne to resign.

This was stated at a meeting held yesterday (14) with a group of parliamentarians of the SLPP.

The group meeting was scheduled to start at 9.30 am yesterday but it had to start at around 10.30 am due to the delay in the arrival of the members. About 65 MPs were present.

From the beginning, the meeting was very heated as the houses and properties of many of the MPs were damaged on the 9th. As they surrounded the president and expressed their grief, they severely reprimanded the IGP and the Army Commander, accusing them of failing to protect their property.

Accordingly, the President had summoned IGP CD Wickramaratne to the meeting at that moment and the MPs had severely reprimanded the IGP, sources said. They alleged that the IGP should have taken steps to provide them with more security and had strongly emphasized that the IGP should take full responsibility for this.

According to sources, the President has finally asked the IGP to resign.

SL compels to commit “hard default on US$ 78 million ISB Coupon payment     

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Sri Lanka is likely to commit “hard default” as opposed to pre-emptive negotiated avoidance as the International Sovereign Bonds (ISB) Coupon payment is due in two days from today Sunday 16. .

Analysts said ISB Coupon worth $ 78 million fell due on 18 April and those coupons have 30 days to repay if defaulted. That deadline is 18 May.

The Government in mid-April announced a pre-emptive negotiated default of all outstanding debt as of 12 April.

Since then, creditors were hoping that Sri Lanka would get its act together to appoint financial advisors and legal consultants for debt restructuring, a process from which the Government was to obtain “Consent Solicitation” from all ISB holders for payment suspension by 18 May.

Whilst the Finance Ministry received over 20 expressions of interests each for the two roles, the competent parties have not been selected as yet. The Central Bank Governor Dr. Nandalal Weeerasinghe on Wednesday said parties have been short-listed and recommendations would be submitted at the next Cabinet meeting for approval.

The process faced multiple snags during the worsening political instability in recent weeks as with the resignation of Prime Minister Mahinda Rajapaksa, the Cabinet remained dissolved.

Analysts opined that even if a new Cabinet is appointed soon and its first meeting approving the financial advisors and legal consultants, the question will be whether Sri Lanka has enough time to what is required to avert the “hard default.” 

In the event the latter becomes a reality rating of Sri Lanka will be further downgraded.

As per the Ministry of Finance debt suspension list, apart from $ 78 million ISB Coupon that fell due on 18 April, some of the others that fell due until 11 May included $ 51.38 million ISB Coupon 3 May, and $ 46.5 million ISB Coupon 11 May.

Those falling due from 20 May includes $ 19.9 million ISB Coupon on 3 June, $ 15.88 million ISB Coupon on 28 June, a further $ 34.13 million on 18 July and $ 1 billion ISB Maturity on 25 July. Debt suspended include IMF debt repayment and those due to other lenders. 

Sri Lanka Telecom records Rs 26 billion revenue growth in Q1 2022  

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Sri Lanka Telecom Group (SLT Group), the National ICT Solutions Provider, recorded a consolidated revenue growth of 5.4% to Rs 26 Bn in Q1 2022, in comparison to the corresponding period in the previous year.

Group Profit After Tax (PAT) in the same period was recorded at Rs. 2.7 Bn, demonstrating the SLT Group’s resilience despite challenging economic conditions.

Beginning the new year, the Group continued its focus on digital transformation agenda, streamlining the cost base and automating processes while delivering and creating value for stakeholders and the nation.

SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) recorded a 9.9% YoY growth to stand at Rs. 10.7 Bn with the EBITDA margin improving to 41% for the quarter against 39.4% in the corresponding period of the previous year. The Group recorded a Profit Before Tax (PBT) of Rs 3.5 Bn for the quarter.

The Group’s revenue growth was primarily driven by the increased broadband revenues resulting from the ongoing accelerated Fibre Expansion Project under the National Fiberisation Programme and due to the expansions and upgrades in the 4G/LTE network. 

The investment towards fiberisation and the aggressive roll-out and marketing of fibre solutions paid off as it contributed to achieve Q1 targets for the Group with increased consumer demand.

 Further, the Group saw an increase in PEOTV revenues due to the accelerated Fibre Expansion Project. The Group’s revenue from Career Domestic services too improved during the period.

SLT Group Chairman, Rohan Fernando stated, thatThe first quarter of 2022 proved more challenging than we had expected, however SLT-MOBITEL overall performance reflected the resilience and strength of our portfolio.

 Throughout 2022 we aim to continue to deliver value for all stakeholders reinforcing our support to bridge the digital divide serving the Nation and our people. Prudent financial discipline was also a key factor in our success”.

The Operating Cash Flows of the Group grew to Rs. 16.3 Bn, up by 35.3% YoY. The Group recorded a favourable cash and cash equivalents position of Rs. 31.6 Bn as at the end of the quarter. SLT Group’s contribution to the Government of Sri Lanka during the first quarter, 2022 amounted to Rs. 4.2 Bn. in direct and indirect taxes including levies.

SLT Group Chief Executive Officer, Lalith Seneviratne added, “The company  continues to invest in the best of emerging technologies, including networks and digital capabilities, and continue our efforts to deploy an innovative portfolio of products and services implementing its transformation.. 

Sri Lanka Telecom PLC (SLT), the holding company of the Group, recorded Rs. 4.1 Bn. in Profit After Taxes for Q1 2022. Revenue for the quarter recorded at Rs. 15.9 Bn whilst the EBITDA and Operating Profits stood at Rs. 6.3 Bn and Rs. 1.1 Bn respectively.

SLTDA to lease out  Uchchamunai Island for a tourist hotel project 

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The Uchchamunai Island in question has not been sold and a lease agreement was signed for a period of 30 years to a foreign investor in an attempt to drive much needed Foreign Direct Investments (FDIs). For Sri Lanka Tourism Development authority( SLTD)A the income is by way of lease rental.

This was claimed by  SLTDA in a statement without tracing the back ground of the plan to lease out Kalpitiya islands since the year 2010.   

The lease rental is based on the value provided by Department of Government Valuation done in October 2020 on which the agreement was finalized.

 The stated $417.5 Million is the project cost estimated by the investor for a tourism project that will be implemented in stages.  The project can only commence when all necessary approvals from the line agencies including Coast Conservation, Environmental Authority etc. are in place.

As per the Tourism Act No 38 2005 SLTDA is mandated to lease out (not sell) SLTDA owned lands to potential investors to develop and operate tourism hotels and resorts in a planned and sustainable manner. 

The SLTDA as in the past has continued to do so, attracting both foreign and local investments, and has been held answerable to the Committee on Public Enterprises (COPE) of the Sri Lanka Parliament for any delays in signing of lease agreements for already approved projects.

Regarding the Uchchamunai island in Kalpitiya, SLTDA in July 2019 called for potential investors via newspaper adverts in all three languages. 

Post evaluation and approval of the Project Proposal Evaluation Committee, it was approved by the Board of SLTDA in February 2020, which includes industry stakeholders and government representatives.  In August 2020 the Minister of Tourism via the Secretary Ministry of tourism approved the signing of a lease agreement.   

The draft agreement for the lease in terms of the technicalities was finalized in October 2020 and the draft agreement finalized in December 2020.  It was ready to be signed in March 2021.

However due to the pandemic situation and internal affairs of the investor the agreement signing was delayed. In April 2022, the Board of Investments (BOI) provided the investor with an ultimatum to sign the lease agreement on or before 11th of May 2022, failing which would result in the withdrawal of the application. 

As a result, the investor requested to sign the lease agreement with SLTDA on the 9th or 10th of May 2022. However, owing to the unfortunate incidents that occurred on the 9th and 10th of May 2022 in Sri Lanka and given BOI’s original request, the SLTDA management arranged signing of the lease agreement for 30-year lease as per land alienation policy on 11th of May 2022.

SLTDA also wishes to clarify that despite popular opinion, the SLTDA nor the government of Sri Lanka or any related stakeholder obtains 417.5 USD Million as a result of this transaction.  The agreement was purely to lease out land for 30 years with ultimate ownership remaining with SLTDA.

For SLTDA, as reiterated before, the mode of income is by lease rental where monthly the investor will pay a fixed fee of a rental for the period of 30 years which is based on the valuation done by the Department of Government valuation in the year 2020.  

The total cost of $417.5 Million simply represents the total commercial value of the investment made by the said investor.

Statement by the FUTA on the Temporary Suspension of Continuous Strike Action

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Statement by the Federation of University Teachers’ Associations (FUTA) on the Temporary Suspension of Continuous Strike Action

The Federation of University Teachers’ Associations (FUTA) has decided to temporarily suspend the current form of strike action undertaken by its members and explore alternative forms of protest that will allow for long-term engagement with the people’s struggle. The decision to suspend the current form of strike action was reached at a meeting of the Board of Representatives held on 13th May 2022. University academics will resume their involvement in teaching-learning activities primarily to avoid the further stagnation of university students’ education. However, we categorically state that this suspension of strike action is not in any way a condoning of the current undemocratic management of the country’s political and economic crises.

The continuous strike action was declared on 10th May 2022 to protest the gross violations of citizens’ rights that were carried out by state-sponsored parties when the MainaGoGama and GotaGoGama (Colombo) protest sites were attacked without provocation. FUTA demanded that an explanation be offered regarding why government resources were utilized to host the attackers at Temple trees prior to the attacks on the protest sites; that swift legal action be taken against those who had instigated and carried out the attacks on the peaceful protestors; that the President of the country and the Inspector General of Police resign immediately in view of their failure to prevent this violence; and that an impartial investigation be carried out to look into the conduct of the Police and the armed forces during this incident. We note with strong displeasure that none of the concerns raised have been addressed so far. However, FUTA remains committed to demanding justice and accountability regarding these incidents of unprovoked violence and state capture.

FUTA reiterates its demand that the President heed the wishes of the people and resign. We strongly condemn his undemocratic exercise of power and his blatant disregard for the people’s demands. We remain committed to supporting the people’s struggle through alternative means of engagement.

FUTA will continue to engage with other trade unions and like-minded groups to ensure the success of the people’s struggle. We recognize the need for long-term engagement and are committed to exploring alternate ways of resisting further attempts to delegitimize the people’s demands.

Rohan Laksiri

General Secretary
Federation of University Teachers’ Associations (FUTA)

President And New Prime Minister Need To Act Urgently And Consensually To Overcome National Crisis

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Sri Lanka has a new prime minister but there is controversy over the choice. There is criticism that President Gotabaya Rajapaksa continues to use his presidential powers in an arbitrary manner in a continuation of practices that have led to the present crisis.  In facing the unprecedented economic and political crisis that grips the country, and widespread public protests, President Rajapaksa pledged to set up an interim government in consultation with party leaders in parliament.   However, he did not do so but appointed UNP leader Ranil Wickremesinghe as Prime Minister much to the consternation of all opposition political parties and thereby ended efforts of other parliamentarians to form a national unity government. 

The new prime minister brings to his job many years of experience as a five-time prime minister with an unbroken record of more than four decades in parliament. However, he has a very challenging task ahead of him.  As the prime minister’s party has only a single seat in parliament, he needs to work in parliament with those from other political parties who are professionals and have a different ethos and have different political interests, but also have the welfare of the country at heart. It must be remembered that this is not a usual government but one established for the revival of the country from moral and economic collapse. Thus, it needs to be very different in those it chooses to hold public office whether from within or from outside parliament.

The National Peace Council wishes Prime Minister Wickremesinghe success in restoring economic and political stability and emphasises that facilitating the restoration of the broken trust between the government and people should be one of his important objectives.  It is an opportunity given to the new prime minister to prove himself beyond parochial and familial affiliations and politics, as his success or failure will determine the future of Sri Lanka. For this he needs to build a consensus within parliament that includes the opposition political parties. It is our wish that all support him in this common task of recovery.  

The National Peace Council also highly appreciates the commitment of the civic and political activists who have been engaging in public protest and advocacy at Galle Face and elsewhere for over a month without a break, and whose sacrifice has made political change possible.  We denounce the use of violence by government-sponsored goons and by anti-government groups and individuals. The killing of people and the torching of buses and private property, including hotels that gave employment to hundreds of people, is especially unacceptable in a time of economic downturn.  We are mindful that the resignation of former Prime Minister Mahinda Rajapaksa was forced upon him due to the attack on peaceful protestors by local politicians from the ruling party who were instigated to violence.  It would also be important to ascertain who else was responsible for fomenting the violence and hold them accountable before the law. 

We call for a structural transformation within the country in which corruption, bigotry and violence is made impermissible.  We also call upon President Gotabaya Rajapaksa to honor the commitments he has recently made.  The first of these would be to repeal the 20th Amendment without delay and within the next two weeks and transfer executive powers to parliament. We also call for a short time frame to be announced by the president and prime minister regarding the abolishing of the presidency and the holding of fresh general elections. 

National Peace Council of Sri Lanka

Message by the UN Resident Coordinator in Sri Lanka on the Day of Vesak

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Colombo, 15th May 2022:

On behalf of the Secretary-General and the United Nations Country Team in Sri Lanka, I send my warmest wishes to all celebrating the Day of Vesak.

“Hatred is, indeed, never appeased by hatred in this world. It is appeased only by loving-kindness.”

As Sri Lanka and the world journey through these troubled times, may this teaching of the Buddha from the Dhammapada guide you.

His message of compassion, tolerance, and respect for one another are true today as they were over 2500 years ago.

Acknowledging the contributions of Buddhism to the world, an eminent Sri Lankan the then Foreign Minister Hon. Lakshman Kadirgamar, brought a proposal to the United Nations General Assembly to make the Buddhist holy day an International Observance Day. Vesak was thus declared a Day of Observance by a General Assembly Resolution in 1999.

Today the United Nations stands with Sri Lanka, we admire the resilience shown by her people, and are hopeful of a peaceful recovery from the current crisis.

It is only with compassion, and purity of intent, that present challenges can be overcome.

“Not to do evil, to cultivate merit, to purify one’s mind – this is the Teaching of the Buddhas.”

Hanaa Singer-Hamdy
Resident Coordinator
United Nations in Sri Lanka
15 May 2022