Two petitions filed against State Minister Sanath Nishantha for contempt of court will be taken up for consideration on September 13, ordered the Appeal Court today (08).
Accordingly, the respondents including Nishantha have been issued notices to appear in the Appeal Court on the designated date.
MIAP
Veteran Actress Damitha Abeyratne was arrested by the Fort Police earlier yesterday (07) and Leader of the Opposition Sajith Premadasa visited the station to check on her.
Abeyratne was a lead voice in the people’s struggle ‘Aragalaya’ against the current regime and is currently in police custody.
Speaking to reporters, Premadasa noted that the government which is asking for the support of the Opposition in what he described as a ‘showoff’ is hunting the citizens of the country.
Vehemently condemning the situation, the Opposition Leader emphasised that the government should be providing solutions to the problems of the people instead of hunting them.
The government despises the youth, university students and artists, the Opposition Leader alleged, adding that it is the government’s tendency to arrest them on the spot and that this state-sponsored barbarism and violence will be fought against.
Ms. Abeyratne was called to come to the Police on Friday (09) but she was immediately arrested yesterday when she joined a protest at the Diyatha Uyana premises, he revealed.
MIAP
Chinthaka Karunaratne has been appointed as the new Director General of Government Information, following the resignation of Mohan Samaranayake.
Mr. Karunaratne is set to assume Office tomorrow (09).
MIAP
The swearing in of new state ministers of the Ranil Wickremesinghe led government has commenced.
37 state ministers are to be sworn in today (08).
MIAP
The Government is stepping up efforts to ensure food security and nutrition via a 10-year strategy that seeks to push for a steady supply chain and nourishment for all citizens.
A 10-year National Nutrition Policy as well as a two-year multi-sectoral integrated mechanism for food security and nutrition initiative will be launched immediately, Ministry of Health sources said.
Through the 10-year national initiative, the Government intends to provide foolproof solutions for the numerous issues that affect the continuity of a better nutrition level for all citizens, whilst maintaining a steady food supply chain to secure healthy food consumption lifestyles, and to boost the contribution of the social and economic development of Sri Lanka.
A multi-sectoral integrated program will also be implemented in the next two years, as an urgent measure to ensure food security and nutrition.
The short-term initiative will be spearheaded by the National Food Security and Nutrition Council through the Provincial, District, Divisional, and Grama Niladhari Division levels to ensure that it covers all vulnerable groups in society.
The moves come into effect after the World Food Program (WFP) in its latest report noted that 6.3 million Sri Lankans have been rendered food insecure, meaning that they cannot access a nutritious diet on a daily basis.
Medical Research Institute (MRI) Nutrition Department Head Dr. Renuka Jayatissa recently told journalists that around 14% of Sri Lankan households were poor and the children in these families were vulnerable to malnutrition.
The WFP is working towards solutions to the current food supply shortage, as the economic crisis has impacted numerous sectors across Sri Lanka, including nutrition security.
While claiming that millions of the poorest Sri Lankans can no longer afford an adequate diet, a top official of the UN’s World Food Programme (WFP) expressed fear that the “situation may get worse in the weeks to come.”
“This makes WFP’s response extremely critical. Our priority is to reach families with life-saving food and nutrition assistance, with children and women at the heart of our response,” WFP Regional Director for Asia and the Pacific John Aylieff said, concluding a two-day visit to Sri Lanka.
The latest WFP surveys show that hunger is rising sharply in Sri Lanka, where nearly half of the households interviewed were facing challenges in accessing food, amid income losses, record levels of food price inflation.
This situation has arisen due to disruptions to the food supply chain and severe shortages of basic commodities including fuel,” the WFP said in a statement at the conclusion of the official’s visit.
During his discussion with a group of recipients of WFP’s assistance, Aylieff heard first-hand accounts of how the deepening food crisis is impacting them.
Four out of five households are limiting portion sizes and skipping meals to cope, a significant number of urban households are among them.
Aylieff who met Prime Minister Dinesh Gunawardena and the Minister of Foreign Affairs, Ali Sabry, discussed the immediate priorities in addressing food insecurity in Sri Lanka.
The Government will be seeking Saudi government assistance to ease the fuel shortage thereby tackling the present energy crisis effectively, Energy Ministry sources disclosed.
Environment Minister Naseer Ahamed, in his capacity as the president’s envoy to Saudi Arabia, has initiated discussions with the Saudi government last week seeking for a five year credit line of US $ 6 billion for the importation of fuel from the Gulf.
This fuel procurement will be on a government to government basis, as a long-term solution to Sri Lanka’s current economic crisis,a senior official of the ministry said.
Minister Naseer Ahamed also proposed Saudi investments in Sri Lanka for manufacturing agricultural fertilizer, constructing petroleum storage facilities, establishing fuel supply stations, modernizing and expanding the refinery, opportunities in mining minerals and promoting renewable energy.
During the meeting with Saudi Vice Minister of Foreign Affairs Waleed Al Khuraiji in Riyadh last week, Minister Ahamed conveyed the interest of President Ranil Wickremesinghe to invite the Saudi Crown Prince Mohammed bin Salman to visit Sri Lanka at his convenience.
A possible visit of President Wickremesinghe to Riyadh prior to the Saudi ruler’s visit to Sri Lanka has also come up in the discussions, the sources said.
At the meeting with Eng. Mansour bin Hilal Al Mushaiti, Vice Minister of Environment, Water and Agriculture, Minister Ahamed referred to the role of coco-peat in the 10 million trees project of the Saudi Green Initiative and the possibilities of the Saudi Ministry investing in a coco-peat venture in Sri Lanka.
The Ministers followed up with a visit to the Saudi Basic Industries Corporation (SABIC) which produces fertilisers, industrial polymers, triple phosphate fertilisers and petrochemicals. ‘SABIC’ had responded its readiness to supply Sri Lanka’s requirements on a government to government basis or to the private sector.
The Sri Lankan Minister also called on the Saudi Development Fund. Its CEO Dr Sultan Al Marshad said that the Fund is principally a development partner in projects and a lending agency.
The Environment Minister is an alumnus of the King Fahd University of Petroleum and Mineral in Riyadh .
The Environment Minister was in Saudi Arabia from 28th August to 1st September and was accompanied by Sri Lanka’s Ambassador to Saudi Arabia P. M. Amza and other officials. The Minister is understood to have briefed the President and the Cabinet on Monday
Sri Lanka trade deficit has been shrunk in July 2002 after the significant drop in imports after 11 years, Central Bank data showed
In July imports amounted to $ 1.28 billion, down by 25% YoY but slightly higher in comparison to $ 1.22 billion in June. Expenditure on imports in the first seven months of 2022 was down by 3.5% to $ 11.3 billion.
The Central Bank said.that the plunge in imports and a healthy 5.4% increase in exports to $ 1.16 billion saw the trade deficit contracting notably in July to $ 123 million from $ 606 million a year ago, thereby easing stresses in the domestic foreign exchange market.
The trade deficit in the first seven months was $ 3.6 billion as against $ 4.9 billion in the corresponding period of last year.
CBSL said it continued to provide forex liquidity to finance essential imports, exhausting the usable level of gross official reserves. The weighted average spot exchange rate in the interbank market remained around Rs. 361 per dollar in July.
In July, a decline in expenditure was observed across all main categories, with the imports of investment goods and non-food consumer goods contributing the most to this decline.
The plunge in imports persisted in July YoY though marginally higher month-on-month with the Central Bank linking the downturn to a host of measures adopted to curb the outflow of foreign exchange.
In July imports amounted to $ 1.28 billion, down by 25% YoY but slightly higher in comparison to $ 1.22 billion in June. Expenditure on imports in the first seven months of 2022 was down by 3.5% to $ 11.3 billion
.
“The notable decline in import expenditure in July 2022 reflected the impact of overall moderation of activity amidst forex liquidity strains in the banking system, while the policy measures to curtail non-urgent import expenditure also helped to contain import demand pressures,” the Central Bank said.
In July, a decline in expenditure was observed across all main categories, with the imports of investment goods and non-food consumer goods contributing the most to this decline.
Expenditure on the importation of consumer goods declined substantially by 46.2% (YoY) in July 2022, compared to July 2021, contributed mainly by a reduction of 66.8% (YoY) in non-food consumer goods.
The decline in import expenditure on non-food consumer goods was observed in all subcategories, with a notable drop in imports of medical and pharmaceuticals (mainly, vaccines), telecommunication devices (mainly, mobile telephones) and home appliances (mainly, televisions).
Expenditure on importation on food and beverages also declined by 7% in July 2022 (YoY), primarily due to the decline in imports of oils and fats (mainly coconut oil), seafood (mainly dried fish) and vegetables.
However, expenditure on cereals and milling industry products (mainly rice), and sugar increased substantially in July 2022, compared to July 2021.
Expenditure on the importation of intermediate goods declined by 9.5% in July 2022, compared to July 2021.
Although import expenditure on fuel and fertiliser increased notably along with a relatively small increase in a few other categories, the overall decline in expenditure on intermediate goods was mainly driven by an 82.7% YoY decline in the expenditure on base metals (mainly, iron and steel).
Further, many other types of intermediate goods recorded a notable decline, including textile and textile articles (mainly fabrics), wheat and maize, plastics and articles thereof (mainly plastics in primary form), food preparations (mainly fat and oil), and agricultural inputs (mainly animal fodder).
Import expenditure on fuel increased by 34.9% (YoY) to $ 345 million, as volumes and average import prices of refined petroleum products increased, while imports of crude oil and coal were non-existent during the month. Import expenditure on fertiliser increased in July 2022, mainly due to high importation of urea.
Import expenditure on investment goods recorded a broad-based decline of 44.3% in July 2022, compared to the same month in 2021. Under machinery and equipment, transmission apparatus, computers, and harvesting machinery recorded a significant decline, among others.
Import expenditure on building material decreased, mainly owing to imports of iron and steel (primarily iron bars and rods), cement, and articles of iron and steel. Lower importation of railway related equipment, agricultural tractors and lorries contributed mainly to the drop in the import expenditure on transport equipment.
The import volume index declined by 36.3% (YoY), while the import unit value index increased by 18.1%, in July 2022, implying that the decline in import expenditure in July 2022 was mainly driven by the volume effect.
Sri Lanka’s employed persons numbering over 8.38 million are facing economic hardships and grappling to make ends meet as the cost of living has gone up sky high, former State Minister of Finance and SJB MP Eran Wickramaratne claimed.
He said that according to the Census and Statistic report of year 2022, a family of five persons needs at least Rs 62,220 per month to escape poverty and 70% of those engaged in employment are receiving the salary of less than Rs 62,000.
The gravity economic crisis exacerbates to such propotions making even the employed persons of the middle class to suffer without money to provide basic needs to lead a decent life , he pointedout. . .
Addressing a media conference in Colombo on Wednesday 07 the MP questioned whether it was right for the government to argue that the UNICEF report on Sri Lanka’s malnutrition cannot be accepted, despite the fact that the government’s official report on poverty has demonstrated that the situation has exacerbated.
Also, the World Food Program reported that about 30% of the country’s population are affected by food shortages and need relief for that, and they have launched a program to supply food to Sri Lanka with international support.
Further, Sri Lanka, which was known as a middle-income country with a per capita income exceeding $4000 in 2019, has now become a low-income country with a per capita income of $3850, which reflects the severity of the crisis.
Sri Lanka, which used to have a high percentage of literacy rate, after the SLPP government came in to power, has become the poorest country in Asia, because malnutrition causes, children with low intelligence to be born.
“Shouldn’t this government be ashamed of saying that they would give Rs 2500 to pregnant mothers through interim budget after having stopped the 20,000 rupees nutritional bag given to pregnant mothers by the good governance government” declared MrWickramaratne
Explaining the current situation with regard to good governance he said that there is no end to corruption and fraud under this government.
The stake holders of the government were fattening up with garlic, sugar and coconut oil scams.The country lost 7.6 million dollars under the guise of importing organic fertilizers.
Banks operate according to the conditions included in the letter of credit by the importer, whengoods are imported.Before proving the quality of the fertilizer, the bank had to pay the exporter as per the conditions contained in the letter of credit.
So far, the government has not investigated those responsible for entering such wrong conditions to the Letter of Credit opened to import fertilizer from China.
Because of this, the country not only lost money but also damages caused to its long-term friendship with China.
The government is silent on the compensation that should have been received from the ship Express Pearl, which was destroyed by fire in the sea, and there is no talk about it.
Mr. Eran Wickramaratne emphasized that the government should respond to these allegations and explain as to why those responsible for the country’s theft and fraud.
In a bid to choose from a wider pool of potential partners to redevelop prime real estate in Nuwara Eliya Town, the Government has extended the closing date for Request for Proposals (RFPs) to 12 September.
It has been revealed that the 5 September deadline for the proposals was extended by a week to accommodate several more investors that have shown interest in the redevelopment of the property.
In July, the Urban Development and Housing Ministry’s Standing Cabinet-Appointed Negotiating Committee Chairman called for RFPs from prospective investors to redevelop prime real estate — former CeyBank Rest land extending up to two acres, one rood and 38 perches at Queen’s Road, Nuwara Eliya.
The land will be leased for 50 years; on a design, restoration, build, finance, operation, and transfer (DRBFOT) basis.
“There is a good response for the project as it is a top location. Several investors informally expressed their interest in the redevelopment of the property, and they are now in the process of compiling their proposals. All of them are financially sound and have earned a reputation for their work.
“Therefore, the officials suggested it would be good to extend the deadline by another week, to which the Committee has agreed. The extension was made primarily to accommodate those investors,” a senior official explained.
In response to the initial call, a total of 10 companies expressed their interest.The base value throughout the 50-year lease will be Rs. 385 million.
The sources said that a pre-bid meeting is also scheduled via video conferencing for prospective investors to clarify all matters concerning the project. However, the date for this has not been confirmed yet.
Initially, the property was known as the Heritage Hotel and was later leased, to the Bank of Ceylon. The CeyBank Rest in Nuwara Eliya had a colonial-type holiday resort with 20 rooms, located in the heart of the city within walking distance to most tourist hotspots — Victoria Park, Golf Club, and Gregory Lake.
Sri Lanka is going for Paris Club talks and negotiations with China, India and other creditors to convince them on their debt restructure under extremely difficult and unfavorable conditions being created as a result of preemptive debt fault declaration made on April 12,several economic experts claimed.
This was the shortest sighted decision taken by the then government in a haste and the then Finance Minister Ali Sabri who has taken the responsibility for it without parliamentary approval, they pointed out.
In response to a statement made by his own government colleague at present Vajira Abey wardena who blamed the Central Bank Governor Nandalal Weerasighe for ill advised the then Finance Minister Ali Sabri told parliament recently that Dr. Weerasinghe gave him necessary advices to make the decision.
He noted that the government was in a dilemma whether debt should be serviced or the remaining amount of reserves should be used for essentials at that time and if someone wants to strip the Central Bank governor of the position, he is ready to step down instead.
His resignation will not help in coming out from the present economic abyss where the whole country had been pushed as the country will lose IMF bailout loan if a single creditor is opposed to debt restructuring process, they claimed.
Sri Lanka has taken this decision to declare preemptive debt default on April 12 at a time where the Central Bank had to pay around 50 percent of the total 2022 debt of US$ 7 billion in the first quarter of this year. The payment due for the second quarter was $ 600 million to China, Mahinda Pathirana former Chairman of Press Council revealed in statement published in his face book
At that time the Central Bank has finalized all arrangements to obtain a loan facility of $2.5 billion to settle this debt. China has insisted Sri Lanka from the inception not to default on their loans as they cannot agree to such arrangements.
Therefore the Chinese Ambassador in Sri Lanka has offered a low interest loan to service their loan and another $1.5 billion long term finance facility to import raw materials for local industries such as garment factories.
Further another $1 billion was in the pipeline by issuing green bonds via Credit Suisse Bank
Despite these debt repayment arrangements, Central Bank Governor Nandalal Weerasinghe has declared the preemptive debt default.
Sri Lanka has to service debts taken from the IMF, World Bank, ADB. At the time of default there was only $1 billion International Sovereign Bond to be matured in July 2022 and several other interest payments.
The country has a steady inflow of foreign exchange from exports amounting to around $ 1 billion, foreign remittances and tourism.
On the other hand the government was using the Indian credit line to import fuel food and medicine. Normally Sri Lanka is importing 70 percent of such items from India.
Under these circumstances the then Finance Minister Ali Sabri and the Sri Lanka delegation had left the island on an official visit to Washington on April 17 to negotiate a bailout loan from the IMF and they were in a weak position following the declaration of preemptive default of foreign debt on April 12 .
The IMF team has suggested the Sri Lankan authorities’ to engage in a collaborative dialogue with their creditors on debt restructuring as the debt sustainability was a prerequisite for the bailout loan.
Central Bank’s sudden declaration of pre-emptive negotiated default of external debt has been made at a time where there was an expected forex inflow of over US $ 10.7 billion in the pipeline as at April 4 to boost foreign reserves, a forex inflow status report showed.
According to the Central Bank’s weekly economic indicator report issued on May 27 2022, Sri Lanka had Foreign Currency Reserves amounting US$1.618 billion as at end April 2017 before the declaration of preemptive default.
This arbitrary decision was taken without the cabinet and parliamentary approval disregarding the healthy position of the forex inflows in the pipeline, a senior official of the presidential secretariat who wished to remain anonymous disclosed. .
Of the above pipeline, a sum of $ 4.5 billion was confirmed as being in the final stages by April 3 and a further amount of around $2.6 billion was very likely to materialize over the short term, he disclosed.
This forex receipts would have enabled the Government to settle the maturing payments due in 2022, while also rolling over several other existing loans, including Sri Lanka Development Bonds and Foreign Currency Banking Unit (FCBU) loans, he said.
