Sri Lanka’s headline inflation based on the Colombo Consumer Price Index (CCPI) for November fell for the second consecutive month to 61.0 percent from 66.0 percent in October as food prices eased off, though the prices of services remained in rather uncertainty, according to the Department of Census and Statistics.

Food prices rose by 73.7 percent in November from a year ago, slowing from 85.6 percent through October while monthly prices declined for the second month in a row by 1.5 percent after falling 2.0 percent a month earlier.

The non-food prices also decelerated marginally to 54.5 percent from a year ago from 56.3 percent in October while monthly prices remained unchanged after rising 0.7 percent a month ago.

People are still paying over 60 percent more for the same basket of goods than a year ago.

A developed economy tolerates no more than 2.0 percent annual inflation and in Sri Lanka this level is set at between 4 to 6 percent, reflecting that the country is still far off from its desired level of inflation.

However, the monthly prices have continued to ease at a faster pace as November prices have fallen by 0.5 percent over the previous month, compared to 0.4 percent decline a month ago.

The monthly prices mostly provide direction of the future inflation path and thus the prices appear to be in a disinflation path, as claimed by Central Bank officials last week.

Meanwhile, the core inflation, which is measured barring the most volatile food, energy and transport costs, rose by 49.4 percent in November from a year ago, easing from 49.7 percent a month ago.

Sri Lankans have been facing runaway inflation since April this year after the Central Bank floated the rupee causing it to lose 80 percent of its value in a matter of months, effectively doubling the prices of everything.

The condition was compounded by commodity shortages, administrative price revisions introduced to power, energy and other utilities, and the sharp increase in taxes.

The Central Bank raised rates at the fastest levels seen in its history this year to curb demand and thereby to bring the prices down.

The Central Bank last week expressed desire to see the short-term rates easing in line with the slowing inflation before it cuts key rates perhaps in a signal to banks to re-open their lending taps, though slowly, to segments which require support to restart and ramp up production.

It also said it would provide liquidity to banks in the inter-bank money market. The Central Bank expressed confidence that it could bring down the inflation to the desired band of 4 to 6 percent by the end of next year.

More than a year since the sinking of the cargo ship the X-Press Pearl in the island nations territorial waters, Sri Lanka is still grappling to claim compensation of US$ 7 billion from the ship owners which was brought down to $ 4 billion due unknown reasons amidst the delay in finalizing relevant documents and proceed with the case.

An expert committee investigating the extent of damage to the country’s marine and coastal environment has now concluded the disaster to be the worst in terms of chemical and plastic pollution of the sea.

That’s according to Ajith de Alwis, co-chair of the X-Press Pearl damage assessment committee and a professor of chemical and process engineering at the University of Moratuwa.

The committee has submitted its assessment report to the Attorney General’s Office for use in claiming compensation from the Singapore-based operators of the ship.

The State Minister said some 11,061 fisher families from Gampaha District, 3050 families from Colombo and 701 families from Kalutara were affected by the tragedy. “Some 4888 fishermen have lost their livelihood as a result of the disaster,” he revealed.

“Some 1726 metric tons of rubble pellets from the ship have been collected till this date, while arrangements have been made to salvage ship from the sea. The company which owns the ship has given this task to a foreign company.

Also the Minister revealed that former state Minister Nalaka Godahewa and the then Secretary of Ministry of Foreign Affairs Jayanath Kolambage should take the responsibilty of their failure to take prompt action to claim compensations damages caused to Sri Lanka following ship disasters of New Diamond and X-Press Pearl with in the past two years.

X-Press Pearl was carrying 1,486 containers when it caught fire off Colombo on May 20, 2021, and began sinking.

Eighty-one of the containers were labeled hazardous, and the cargo included 25 metric tons of nitric acid — a key ingredient in the production of explosives, and touted as a possible factor for the fire.

There were several explosions, and it took more than a week to bring the fire under control. Attempts to tow the vessel to deeper waters failed, and the freighter finally sank on June 2, 2021, a few kilometers off Sri Lanka’s western coast.

The ship was also carrying 400 containers of nurdles, the plastic pellets from which all manufactured plastic goods are made.

The spill of the more than 50 billion pellets made this the worst plastic marine pollution event in the world, with the pellets quickly spreading along the beaches of Sri Lanka’s western coast.

In the aftermath of the ship accident, marine biologists noted an unusually high number of sea turtle mortalities, which they suspect was the result of the pollution, but for which they currently lack definitive evidence.

For the first time in the history of the Central Bank, the Unions of the Central Bank distribute a common circular condemning the actions & behaviour of the incumbent Governor, within the bank. The distribution of the circular was done by around 200 members of the staff, today (December 1, 2022).

To all our Members

As you all know, we have been engaged in constant struggles with the management to protect the rights of the workers, and we have gone beyond that recently and shouldered the great responsibility of fulfilling our duty to the country for a good political environment and we greatly appreciate the dedication received from you for that. It is no secret that even though we all were able to make some changes in the political environment that were fulfilling the hopes of a huge number of people who came forward for the country in the face of the severe economic crisis, it is not a secret that we have not been able to achieve a political environment that everyone is hoping for. Although we tried to heal the wound called economic crisis by applying small band-aids, we have to admit that it has turned into a cancer that has covered the entire country.

Currently, it has been generalized among the public that it is impossible to cure this cancer without the help of the doctor called the International Monetary Fund. The society has also been made to believe that all state-owned properties should be sold and privatized to save the country. Resolutions have been passed to increase the government revenue by imposing a huge tax burden on the people. In any case, the rulers will enjoy themselves by making pro-Western economic policies that will further harm the innocent people.

Without calling for any sacrifices from the privileged groups, without stopping wasteful spending in the country, without proper measures to strengthen the tax collection network, the working people are being made to bear all the hardships, and we see the media campaign constantly while the innocent people are under more and more pressure. At the same time, through all this, the governor seems to be determined to only protect his own reputation. Therefore as professional associations, we hope to make further comments about this in the future.

We would like to first remind you that our Unions did not hesitate to inform you of the danger as soon as we heard about the appointment of the current Governor. But, we put aside the demands of the employees and took a step back for the sake of the country. Now, 8 months later, it appears that there are only media campaigns, and the Governor’s attitude towards employee demands is still the same.

Therefore, we would like to recall our criticism regarding the appointment of the current Governor.

It is now made out as if he has not made any contribution to making major decisions regarding the country’s economic deterioration while holding the position of Senior Deputy Governor for many years until 2020. It is obvious that if his contribution was effective, there would not have been such a severe economic crisis just about two years after his retirement.

In any case, Isn’t it a burden to the country to have had a position of senior deputy governor which did not exist before in the history of the central bank and for him to enjoy huge salaries and allowances for that position?

Why was it not possible during his tenure as Deputy Governor to take necessary measures before the collapse of the finance companies, even though it was known earlier that the country was going into crisis? Wasn’t he even questioned by the Criminal Investigation Department (CID) regarding the ETI scam in 2020, because he failed to perform his duty properly?

What was the benefit of him traveling abroad more than 12 times each year during the last few years as Deputy Governor? Wasn’t the money spent on his foreign tours just a waste of public money? What was the advice given by him as a senior officer to the then Governor at the time of the bond fraud which caused great infamy to our institution? As an official who accompanied the Governor to the public debt department on the day of the incident, didn’t he have a responsibility to set aside his personal privileges and explain the damage that had been caused to the economy?

Also, what is the justification that led to the increase of his pension as a Deputy Governor by about two hundred thousand rupees along with the last salary revision of 2021-2023? It is not a secret in the Bank as to how he, as the Deputy Governor, created the opportunity for the matter to be considered through a calculated request from a retired officer to determine the pension on the date of retirement so that it would be favourable to him.

In the year 2019, the Bank also made quick arrangements to deprive all employees of their privileges by abolishing the tax payment system and at the same time, it was done to save the retirement allowances and retain all the privileges that he had as a deputy governor.

His hand was also the invisible hand which misled the Governor and engineered the shameless attempt to take account of the unjustly increased salary of only a group of people during the 2018-2020 salary revision.

Members are also informed that our Associations have decided to use this opportunity to comment on the decisions taken by the current Governor for the country during the past period and it is necessary to do so in order to save the country from the economic crisis and defeat the western conspiracies. Let’s make it clear that we are not afraid to take that step for the sake of our country.

Yours in brotherhood,

1. Central Bank Employees’ Union
2. Central Bank Graduates’ Trade Union
3. Central Bank Employees’ Alliance Solidatiry Union
4. Central Bank Jathika Podu Sewaka Sangamaya
5. Central Bank of Sri Lanka Employees’ Union

When the case related to the disappearance of journalist Prageeth Eknaligoda was called before the Colombo Three-judge High Court yesterday (30), lawyer Upul Kumarapperuma, representing the aggrieved party, gave evidence to the court that it is a serious loss that Senior Superintendent of Police Shani Abeysekera, the former director of the Criminal Investigation Department, who was the chief investigating officer in this case.

The lawyer had pointed out that not calling Shani Abeysekera, who is the person who knows all the facts about those investigations, has been highly prejudicial to his side.

The Deputy Solicitor General, Dilipa Peiris, representing the Attorney General, had admitted before the court that it was a serious shortcoming on his part.

Accordingly, it was reported that Dilipa Peiris, on behalf of the Attorney General, has promised before the three-member High Court bench to summon Shani Abeysekara to testify in this case.

Legal sources said that this will be a very important turning point in this case.

Foreign Affairs Minister Mohammad Ali Sabry says that while everyone in the cabinet agreed to allow the burial of Covid 19 bodies, Professor Metthika Withanage and Dr. Channa Perera acted against it.

Mohammad Ali Sabry said this yesterday (30) while speaking in Parliament.

1. US-based New Fortress Energy Inc. likely to pull out of its agreement with the Govt to acquire 40% of shares of Yugadanavi Power Plant in Kerawalapitiya, along with a monopoly to supply LNG in Sri Lanka.
2. State Minister of Finance Shehan Semasinghe says the Ministry of Finance is in the process of establishing a Casino Regulatory Authority: refuses to provide a time-line for its establishment: says the procedure would require a lot of legal work.
3. JVP leader Anura Kumara Dissanayake says Sri Lanka will have to find a new planet to locate itself after declaring bankruptcy since no country will ever give it a loan now.
4. IRD Commissioner General Ranjith Hapuarachchi says the tax revenue target of Rs.3 trillion as per Budget 2023 will be extremely difficult to achieve: cites reason as the negative economic growth estimated for 2023: after the announcement of bankruptcy, growth for 2022 revised down from 4.5% (positive) to 8.7% (negative): 2023 also expected to be over 5% (negative).
5. Opposition Leader Sajith Premadasa demands answers from the Govt on the killing of a man believed to be connected to the Easter Sunday attack: Badurdeen Mohamed Harnas, 38, was hacked to death by a group in Mattakkuliya while being out on bail.
6. State Finance Minister Ranjith Siyambalapitiya says there would be no shortage of
   milk powder in the coming days: assures necessary arrangements are being made in that regard.
7. Former CB Governor Dr. Indrajith Coomaraswamy says “the perimeter for Debt that has to be treated can only be determined once the terms for the treatment of the external Debt are finalised”: Coomaraswamy has been one of the key advocates of Sri Lanka’s Forex debt default and a Member of the “Presidential Advisory Group on Multilateral Engagement and Debt Sustainability” which initiated the Forex debt default that has now led to Sri Lanka’s being ostracized in the global community.
8. Foreign Minister Ali Sabry expresses regret over Sri Lanka’s decision to refuse the burial of COVID infected bodies: says the island lost almost all its Middle Eastern allies as a consequence: says he had strongly opposed the decision at the Cabinet: insists the decision was devoid of logic, science & empathy.
9. Sri Lanka Cricket Chief Selector Pramodya Wickramasinghe writes to SLC Secretary Mohan De Silva regarding recently axed national cricketer Chamika Karunaratne: says the top all rounder was “more interested in meeting ladies”.
10. Sri Lanka beat Afghanistan by 4 wickets and level the series 1-1: Afghanistan 313/8 (50 overs): Sri Lanka 314/6 (49.4 overs): Man of the Match – Charith Asalanka 83*.

Yesterday (30), the Fort Magistrate’s Court ordered the release on bail of Borella Sirisumana Thero and Isuru Bandara, who were arrested and remanded in connection with Thilini Priyamali’s large-scale financial fraud.

Thilini Priyamali and Janaki Siriwardena were ordered to be remanded until December 13.

Prison officials have informed the court that a suspect who was arrested and remanded in custody for the murder of Member of Parliament Amarakirthi Athukorala and his security officer has died in Mahara Prison recently.

When the case related to this murder was called before the Attanagalla Magistrate’s Court on the 28th, an officer of the Mahara Prison appeared before the open court and stated that the suspect named Anton Gabriel, who was held in remand custody, had died due to some medical condition.

Accordingly, the Attanagalla No. 02 Magistrate ordered the officers of the Mahara Prison to submit the report of the Welisara Magistrate’s Court and the report of the prison to the court in relation to the death of the suspect inmate.

A group of people assulted and killed the Member of Parliament Amarakirthi Athukorala and his security officer in Nittambuwa area during the conflict situations that occurred on May 9th.

In connection with this incident, 40 people were arrested by the police, of which 4 were released on bail and the remaining 36 were remanded in custody.