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Amendments to Sport Law: Path to success or disaster?

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Centralising powers with the Sports Minister, the Sports Ministry has introduced a series of intrusive and restrictive regulations compromising the autonomy and independence of registered national sports bodies in the country. These changes came into effect on December 14, 2022, and see many current officials being barred from contesting at elections next year due to a term-limit and age-limit introduced.

The Sports Minister will retain full powers to overrule any of the sections of the new amendments of the Sports Law under ‘special circumstances’

Under the new regulations, no one over the age of 70 is eligible to contest elections. Also ruled out are those who have completed four two year terms in office, those who have been found guilty of corruption and financial irregularities, those with dual citizenship, Sports Ministry officials and those who failed to declare their assets and liabilities for three years before the nominations.

However, the Minister has retained full powers to overrule all of the above under “special circumstances”—a clause viewed as detrimental to the development of sports in the country.

“This is direct political interference,” commented lawyer Panduka Keerthinanda, a sports law expert.

“If the minister can overrule the regulations and permit, what’s the whole purpose of amending the regulations in the first place?”, he questioned.

“We took this clause out as it was viewed as a direct influence on the independence and autonomy of sports bodies by the International Olympic Committee (IOC) and other international bodies and we are going backward now. This is really a depressing situation,” said Keerthinanda, who was behind several regulations introduced in the past.

According to him, this will lead to a culture of impunity with sports administrators going behind politicians to hold office.

Separately, associations argue that the regulations are not only a violation of human rights, they are a direct interference in the affairs of voluntary, non-profit and mostly self-financing sports bodies. They say it discourages volunteerism.

The regulations have effectively limited the term of a president to a maximum of two two-year terms in all sports associations other than the National Olympic Committee (NOC). NOC President, Secretary General and Treasurer can hold office for a maximum of two four-year terms.

This is in violation of the Olympic Charter and the governing statutes of most of the international sports bodies which put no restriction on term of office and is likely to be condemned.

In 2013, Sri Lanka agreed in principle to review its archaic sports law to make it compatible with the basic principles that govern the Olympic Movement. The IOC has repeatedly warned of repercussions if Sri Lanka fails to introduce changes to minimise political interference, and to safeguard the autonomy and independence of sports associations.

However, after years of repeated calls by the IOC, Sri Lanka came up with a new amendment that removed some of the major intrusive elements. They have now been reintroduced through the regulations promulgated this week.

On the plus side, the regulations have amended the voting structures of sporting bodies with each district, provincial, clubs and other associations only getting one vote at an election of office bearers at their respective national sports body.

Sunday Times

SL’s economy falls deeper into recession amidst tight monetary policy

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Sri Lanka’s economy has fallen deeper into recession, as tight monetary policy and Asia’s fastest inflation further aggravated the nation’s economic crisis, latest official statistics indicated.

Gross domestic product probably contracted about 10 percent between July and September compared to the same period last year, according to an analytical report on recent available official data.

The reserve money increased compared to the previous week mainly due to increase in the currency in circulation.

Reserve Money increased to Rs 1,341.7 billion in October 2022 from Rs 1,378.6 billion of the same month last year, Central Bank data shows.

The total outstanding market liquidity was a deficit of Rs. 370.842 bn by the end of this week, compared to a deficit of Rs. 397.503 bn by the end of last week.

During the year up to 16th December 2022, the Sri Lankan rupee depreciated against the US dollar by 44.8 percent.

Given the cross currency exchange rate movements, the Sri Lankan rupee depreciated against theEuro by 41.4 percent, the pound sterling by 39.0 per cent, and the Indian rupee by 38.5 percent and the Japanese yen by 34.3 per cent during this period.

Official Reserve Assets stood at US$1,804 billion as of end November reflecting some forex exchange inflows into the country.

Earnings from Tourism have dropped to $107.5 million last month $ 15.4 million posted in November last year.

Workers’ Remittances (Inflows) recorded an increase to $384.4 million in November this year compared to $ 271.4 million in the same month last year.

This data shows that the country’s economy has shrunk by about 10 percent between July and September of this year compared to last year. The economy shrank by 8.4 percent between April and June.

Senior finance ministry official points out that higher inflation and weak reliability have further dampened the situation.

Meanwhile the Government will introduce a new program to protect both tourism and the banking sectors, whilst highlighting the need to work collectively on the directions of President Ranil Wickremasinghe.

It will help to maintain the banking sector in the country without letting it collapse while developing the tourism sector.

Subsequent to the Easter Sunday terror attacks in April 2019, initially a financial moratorium servicing of borrowed capital and related financial cost was arranged for six months from July to December 2019.

Thereafter, due to the COVID pandemic, the financial moratorium was extended on three occasions till 30 June.

Thereafter, the leading industry associations urged for the extension of the Rs. 500 billion debt moratorium by additional six months till 31 December, noting it was critical for the 3 million-dependent industry and to tap prospects for more forex-boosting visitors in the upcoming winter season.

Central Bank Governor says in rediffusion SL needs reforms with or without IMF

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While keeping his radio silence and switching on his ‘rediffusion’ , Central Bank Governor Nandalal Weerasinghe said with or without the International Monetary Fund (IMF), Sri Lanka needs to bring in reforms to correct the economy and put it on a sustainable footing.

“As an economy, we need medium- to long-term reforms to restructure the economy,” he said, speaking at the CA Sri Lanka’s Annual Research Symposium recently.

The Central Bank Governor also set the record straight on bilateral creditor discussions, citing that it had been miscommunicated disputing the announcement made at the recent cabinet media briefing. .

“During the post-Cabinet meeting media briefing, it has been informed that we have concluded the negotiations with bilateral creditors Paris Club, China, India and Japan.

“I saw some reports in the media as well. I think it was probably a miscommunication. We have not concluded discussions, but have made good progress. We are in the process of completing it. We intend to obtain the financial assurance somewhere in January,” he stressed.

Weerasinghe said once the financial assurance is obtained the next step is to present it to the IMF along with our macroeconomic policies. “On that basis, we will be able to stimulate the economy in the short term. But of course, we need long-term reforms and correct policies to fix the imbalances,” he added.

The third meeting between bilateral creditors and the Government concluded last Thursday in Colombo.

“We appreciate the progressive and constructive engagements,” State Minister for Finance Shehan Semasinghe said. “We wish to reiterate that we will maintain an equal, comparable and transparent debt treatment policy,” he said via a tweet.

Sri Lanka’s outstanding debt due to bilateral creditors’ amount to US $ 14 billion of which 52% is to China. Others include Japan and India.

Lanka held the third meeting with its bilateral creditors on debt restructuring, State Finance Minister said, as the island nation’s $2.9 billion International Monetary Fund (IMF) loan has been delayed amid agreement among its creditors are yet to be seen.

Sri Lanka could not hold the third meeting with bilateral lenders scheduled for November 17 citing the creditors need some clarification before the next meeting.

The creditors include geopolitical rivals China and India. No country has so far fully agreed with any of the debt restructuring system, government sources have said.

“Central Bank Governor Nindalal said Sri Lanka is now eyeing the January deadline for the IMF board approval to secure a $2.9 billion loan.

Officials say lack of consensus among Sri Lanka’s creditors over debt restructuring and some pending reforms in loss-making state owned enterprises (SOEs) have resulted in the delay.

Sri Lanka held its first meeting with bilateral creditors on October 14 and the second on November 03, though no consensus has been reached. President Ranil Wickremesinghe’s administration has said that it has been negotiating with India and China for debt restructuring separately.

Korean firm takes the lead towards developing Trincomalee industrial harbour

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Sri Lanka’s initiative of developing Trincomalee as an “industrial harbour” is now underway with a Korean firm stepping into setting up a container factory in Trincomalee with US$ 50 million investment.

The economically beleaguered nation will put up a couple of thousand hectares of land on lease to set up industries in a special economic zone and the associated development of the strategically located port, stirring up geopolitical interest in that part of the Indian Ocean.

Yakdong Industries Co. Ltd., one of the 10 leading companies in Korea has been given 50 acres site in Trincomalee for the establishment of a large scale container manufacturing factory in Trincomalee, according to the office of Prime Minister Dinesh Gunwardena.

Yakdong Industries Chairman Heung SeokGwon and the Vice Chairman Kyeong Won Shin called on Premier Gunawardena on Wednesday and assured that the constructions of the factory will be completed soon so as to commence production within the next six months.

The factory will be established on a 50 acres site in Trincomalee and the expected production is 10,000 containers per month. It has already selected 32 welders from Sri Lanka to work initially in Korea and they will be used to supervise the employees in the Sri Lankan factory in future. They will recruit 70 more employees to the factory.

A statement from the Prime Minister’s office said that leading international freight companies have already given orders to build containers.

The factory will also purchase discarded containers to be renovated and used for several other purposes such as sales outlets, dwellings, agricultural purposes etc.

Sri Lanka Ports Authority owns a large land, some 2,400 hectares, that surrounds the port of Trincomalee,” senior official of the SLPA said.

The plan to develop an industrial harbour in Trincomalee is a long-standing plan to monetize land that belongs to the Sri Lanka Port Authority, by getting foreign and local investment for a special economic zone, an industrial park, or an energy hub.

This would also entail the development of the port for non-containerized cargo traffic, such as cement, coal or other industrial raw material.

Prices of all short-eats slashed

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The prices of all short-eats will be slashed with effect from today (18), as per a decision by the All Ceylon Restaurant Owners’ Association.

Accordingly, the prices of all short-eats will be slashed by Rs. 10, revealed Union Chief and Consumer Rights Activist Asela Sampath.

The decision comes in for the conveyance of the benefit of the price slash of several raw materials to the public, Sampath noted.

MIAP

SL’s manufacturing sector continues its decline amidst up in services

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In the wake of 11.8 percent contraction of the economy in the third quarter, the country’s manufacturing sector entered the fourth quarter with a downturn continuing In November 2022 as per the Purchasing Managers Index (PMI) of the Central Bank.

The Central Bank has indicated a setback in manufacturing and service sector activities on a month-on-month basis.

Manufacturing sector setback was contributed by subdued performance observed in all the sub-indices, except for Suppliers’ Delivery Time.

New Orders and Production remained contracted in November mainly due to the subdued demand conditions, particularly in the manufacture of the food and beverages, and textile and wearing apparel sectors.

Many respondents representing the food and beverages sector mentioned that deterioration of purchasing power of the consumers was the major reason for the decline in demand.

In the meantime, export-oriented manufacturers, particularly in the textile and apparel sector, highlighted that the subdued demand was due to the economic slowdown in major export destinations and shifting of orders to other countries amidst stiff competition.

Besides these, acquiring required raw materials was an issue for certain manufacturers due to a shortage of foreign exchange.

Furthermore, Employment and Stock of Purchases declined in-line with the decline in New Orders and Production. Meanwhile, Suppliers’ Delivery Time lengthened in November 2022 compared to the previous month.

Expectations for manufacturing activities for the next three months indicated an improvement in November 2022 anticipating improvements in economic conditions.

Services sector recorded a slight increase in November 2022, but , yet remained slightly below the neutral threshold level.

The rate of decline in services activities was softened with the improvements observed in New Businesses, Business Activities and Expectations for Activity. However, Employment and Backlogs of Work declined during the month.

New Businesses improved in November 2022 compared to October 2022, particularly with the increases observed in some financial services, insurance, and other personal activities.

Business Activities in the services sector continued its increasing trend in November 2022 due to the upcoming festive season.

Accordingly, business activities related to other personal activities, financial services and telecommunication sub-sectors showed improvements compared to the previous month. Further, in line with the increase in tourist arrivals, business activities in accommodation, food and beverages sub-sector also increased.

However, business activities related to the wholesale and retail trade sub-sector declined further during the month amid the continued cost of living challenges.

Employment continued to fall in November due to increasing resignations, migrations and retirements though few recruitments took place in several companies. Meanwhile, Backlogs of Work dropped at a faster pace during the month.

Expectations for Business Activities for the next three months improved further especially with the festive season and optimism regarding improvements in economic conditions.

India’s Chief of Naval Staff leaves SL concluding official visit

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India’s Chief of Naval Staff Admiral R Hari Kumar who arrived in Sri Lanka on 12th December 2022 on an official visit, left for India from the Bandaranaike International Airport yesterday (17) morning.

During his visit, Admiral Kumar had the opportunity to hold discussions with Commander of the Army, Lieutenant General Vikum Liyanage, Commander of the Air Force, Air Marshal Sudarshana Pathirana, Chief of Defence Staff, General Shavendra Silva, Defence Secretary, General Kamal Gunaratne (Retd), State Minister of Defence, Premitha Bandara Tennakoon, Prime Minister Dinesh Gunawardena, and President Ranil Wickremesinghe on matters of bilateral importance.

Moreover, the Indian Navy Chief took time off to pay his tributes to the fallen Indian soldiers at IPKF Memorial in Battaramulla. Visit to the National Defence College in Colombo and paying homage to the Temple of the Sacred Tooth Relic in Kandy have also been in his itinerary.

At the invitation of SL Navy Commander Admiral Nishantha Ulugetenne, he, as the Chief Guest, revived the Commissioning Ceremony of Midshipmen held at the Naval and Maritime Academy in Trincomalee on December 15.

Admiral Kumar also embarked on sightseeing tours in Galle and Trincomalee, before concluding his 06-day official visit to Sri Lanka.

On the sidelines of this visit, the Navy Seva Vanitha Unit, under the directives of its President Chandima Ulugetenne, had also organised a special programme for Mrs Kala Hari Kumar, the spouse of Chief of Naval Staff of India.

MIAP

Heavy showers above 100mm likely to occur at some places

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Showers will occur at times in Eastern, Uva and Central provinces and in Polonnaruwa and Hambantota districts, and heavy showers above 100mm are likely at some places, said the Department of Meteorology in a statement today (18).

Showers or thundershowers will occur at several places elsewhere over the island during the afternoon or night. Fairly heavy showers about 75mm are likely at some places.

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

The low-pressure area over Southeast Bay of Bengal persists over same region. It is likely to move westward towards southwest Bay of Bengal during next 36 hours. Wind speed will increase up to (50-60) kmph at times and showers or thundershowers can be expected in deep sea areas of South East Bay of Bengal and South West Bay of Bengal. Therefore, Naval and fishing communities are requested to be vigilant while engaging in marine activities in the above sea areas.   Fishing and naval community are requested to be attentive to future forecasts issued by the Department of Meteorology in this regard.  
Condition of Rain:
Showers or thundershowers may occur at several places in the sea areas around the island.
Winds:
Winds will be north-easterly and wind speed will be (30-40) kmph. Wind speed may increase up to (50-55) kmph at times in the sea areas off the coast extending from Trincomalee to Hambantota via Batticaloa Pottuvil and Kankasanthurai to Colombo via Mannar and Puttalam.
State of Sea:
The sea areas off the coast extending from Trincomalee to Hambantota via Batticaloa, Pottuvil and Kankasanthurai to Colombo via Mannar and Puttalam will be rough at times. Other sea areas around the Island will be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

MIAP

As an island nation, SL should maintain good relations with all countries: President

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President Ranil Wickremesinghe said that Sri Lanka should adopt a non-aligned foreign policy in dealing with the international community, as an island nation.

The President also pointed out that Sri Lanka can be elevated to a higher level in the international sphere by adopting a non-aligned foreign policy rather than supporting or being dependent on any powerful country or group of countries.

President Ranil Wickremesinghe made these observations yesterday morning (17) while taking part in the 97th Passing out Parade of the cadet officers of the Diyatalawa Military Academy.

Three hundred and fifty-one (351) cadet officers who completed their training at the Diyatalawa Military Academy were commissioned at the passing out ceremony.

It was a significant occasion where cadet officers from four foreign countries who received their training at the Diyatalawa Military Academy were also among those who were commissioned.

The Commander-in-Chief, President Ranil Wickremesinghe, who arrived at the Military Academy, was received amidst customary military pomp and pageantry.

The day’s events commenced with the President laying floral tributes at the war heroes’ memorial at the Diyatalawa Military Academy.

After the inspection of the parade, President Ranil Wickremesinghe presented the championship flag to the best cadet team and swords to the cadet officers.

The President also posed for a group photo with the commissioned cadets and planted a ‘Na’ sapling on the college premises to mark his visit.

The statement made by President Ranil Wickremesinghe is as follows:

Today is a very important day for you all as you complete your training at the Diyatalawa Military Academy. But it is a new beginning in your life for you will commence serving as regular members of the Army.

As the leaders of the Sri Lanka Army, you also have a responsibility of protecting the Army, and its soldiers and protect the republic from the enemy. It is entrusted to you by the republic and it is also of paramount importance to protect the honour and reputation of the institution where you were being trained.

As a country, we are not aligned or in any agreement with the world powers as we are an island nation. We should be friendly with all countries.

You are entrusted with the responsibility to protect this country and you have the capacity to protect the country from internal as well as external influences. The Army which you enroll into has war experiences including international warfare experiences since they are together with the UN Forces taking part in the operations in the state of Mali.

Hence you have the capacity to face any kind of challenge that may come in the future and I, therefore, entrust you with that responsibility to move forward strongly.

State Minister of Defence Pramitha Bandara Thennakoon, Chief of President’s Staff and Presidents’ Senior Adviser on National Security Sagala Rathnayake Defence Secretary General Kamal Gunaratne (retd), Chief of Defence Staff General Shavendra Silva, Army Commander Lieutenant General Vikum Liyanage and Diyatalawa Military Academy Commandant Major General Niyangoda were present at the event.

PMD

Sri Lanka Original Narrative Summary: 18/12

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  1. Chief Government Whip Prasanna Ranatunga says SLPP would contest the next election under a new alliance with the symbol to be decided later: also says SLPP would form an alliance with the UNP: describes incumbent administration as a Wickremesinghe-Rajapaksa Govt.
  2. UNP General Secretary Palitha Range Bandara says the SLPP and UNP have not yet come to an agreement about contesting together in the coming elections: also says the UNP is ready to work with anyone to develop the country.
  3. Several SLPP MPs file Petition in the Court of Appeal seeking an order directing the authorities to conduct an investigation to ascertain whether former Army Commander General Shavendra Silva, IGP Chandana Wickremaratne or any others disobeyed President Gotabaya Rajapaksa’s orders to prevent damages to property and people on 9th May.
  4. Foreign Minister Ali Sabry says holding an election is not going to be a solution to the current crisis: asserts the solution depends on structural reforms that are to be done: also says no one is more knowledgeable and capable of undertaking that reform, than President Wickremesinghe: explains the ground reality is that people are happy with the President’s leadership.
  5. Lanka Coal Company Chairman Shehan Sumanasekera says coal imports from South Africa have been scheduled months ago to operate the coal-fired thermal plants: also says he doesn’t understand why CEB engineers say the country would  face blackouts from March ’23 due to lack of coal at its thermal power stations.
  6. Negombo Additional District Judge Nuwan Tharaka Heenatigala orders to lay-by cases filed against President Ranil Wickremesinghe by the relations of those who died from the Easter Sunday bomb blast in Katuwapitiya, Negombo as long as Wickremasinghe holds the Presidency: asserts he is entitled to immunity as per Article 35(1) of the Constitution.
  7. Police arrest 75 persons during a drug raid carried out near 122 schools in the Western Province: recover 2.148 kg of ‘Mava’, 9.345 gms of heroine, 1.522 gms of ICE and 10 Ecstasy pills.
  8. Police spokesman says a total of 1,441kgs of heroin along with 45,801 suspects, 11,881 kgs of Ganja with 34,062 suspects, and 109 kgs of ICE with 10,532 suspects have been taken into custody so far this year.
  9. All Ceylon Bakery Owners Association Chairman N Jayawardena announces that the price of bread has been reduced by Rs.10.
  10. Ministry of Ports, Shipping and Aviation Official says 3 Sri Lankan companies have shown interest in launching a ferry service between South India (Puducherry) and
    Kankesanthurai: affirms the service is expected to commence in January or February 2023.