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Join us to solve the ethnic problem after the budget: President

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• President invites all political parties
• Dinh Diem style of governance will never be allowed

President Ranil Wickremesinghe said that a discussion will be held after the conclusion of the budget on December 11th to reach a consensus among all political parties to achieve a permanent solution to the ethnic crisis, including power devolution.

The President said this delivering a special statement in parliament today (23).

President Ranil Wickremesinghe emphasized that he will never allow a Dinh Diem -style rule, and warned that if such an attempt is made, the military will take measures to impose emergency law and prevent it.

President Wickremesinghe further said, “Hon Speaker, first I would like to tell Hon. Sumanthiran that when we were in Vavuniya the day before we did discuss and sorted out the questions regarding the Dept. of Wildlife and Dept. of Forests. It’s a problem not confined to the North. It’s in most parts of the country, so we will be taking that up. Having said that, I think all that has to be known about the problems of this country, be it the ethnic problem or whatever you call it, from 1984 until now, we have done it. There is nothing new to talk about. It is just to take what is relevant and I think we can do it by next year which is my aim. It’s the 75th Anniversary of Independence and if you can’t do it by then, you may not have that Sri Lanka by 2048.

So, one is, we have to build up confidence with the Tamil community, but we’ve also got to build up confidence with those people in the Sinhala community who has reasonable concerns as to where it will lead. Finally, we are also looking at the Muslim community and we’ve discussed that all those for whom against there is no evidence, these young people will be released and this was discussed at the Security Council as well.

Before the commencement of this debate, the leader of the opposition as well as MP Lakshman Kiriella said to sell loss-making institutions but not to sell profit-making ones for a minor amount. Privatization started under President Premadasa. I started it as the then Minister of Industry.

Initially, we privatized United Motors. It was a profit-making company. Also, the privatized Ceylon Oxygen, Leather Corporation, Tyre Corporation, Lanka Milk Food, and Lanka Distilleries were all profit-making companies. Later, the plantation companies were privatized, some of these companies made profits, and some companies were making losses.
In 1977 Mr JR. Jayawardena opened the economy. President Premadasa took the next step in 1989. Accordingly, some institutions were removed from government control and handed over to the private sector. An example was the program started by Mr Deng Xiaoping in China. We took it forward. We are trying to implement this program again.
Yesterday, former President Mahinda Rajapaksa declared that only loss-making institutions should be privatized. In support of him, the leader of the opposition said that only loss-making institutions will be sold. Now you have a good follower. So let’s decide what we’re going to do.

I also listened to the Prime Minister’s speech. Today we are fortunate to be able to have a normal debate in this House. This is something that is done in every country. However, between May 9th and July 13th, we were uncertain if there would be such a situation. We have now gone to the court regarding the incident.

One member of parliament was brutally killed on the streets. The other Member of Parliament was the first to say “Gota go home”. He fortunately escaped. How can we approve this? We opposed such incidents.

The previous week he had wanted the government to be toppled. Then there were attempts to burn the person who said that inside his car. If this government should be toppled or if it is to be Gotabhaya Rajapaksa or Mahinda Rajapaksa is irrelevant. These are matters that should be solved within.

Some of the houses that were burnt belonged to those who had not even participated in the meeting that was held at Temple Trees on that day. My question is, what could anyone hope to gain by setting fire to the homes of MPs be it government or opposition?

Nalanda Ellawala was killed in an incident in which some of the parliamentarians were involved. They were arrested. The residences of some persons were burnt in Ratnapura. We objected to it then. Burning of residences of parliamentarians of government or opposition sides is unacceptable as 225 of the MPs have been elected by the mandate of the people in the country. Hence, they should be allowed to execute their duties.

We need better representatives at the next election. But the professionals say that they are not allowed to enter into active politics with their wives for fear of their homes being burnt. Then is it only the thugs that would represent the public in Parliament? So we have got to pay compensation to the affected and provided them with security.

The former President was ousted on July 09th. See the damage caused to the official residence of the President and the Presidential Secretariat building after the protesters acquired them. I have got a complete report of what they said and did there.

They set my house on fire, as I did not resign from the office of Prime Minister. How could I resign as I had the majority of the Parliament? If any other needed power they had to set up an all-party government. They acquired the Prime Minister’s Office. On the 13th of the same month, they came to acquire the Parliament to identify themselves as the government.

Had they succeeded in taking over the parliament, the government would become a puppet government. That is the reason why I asked the opposition not to be driven by such forces. The public was not with them. Finally, they criticised me and told foreign media that I was a dictator. It was I who brought the 17th Amendment to the Constitution. That is why Mrs. Chandrika Kumaratunga assisted me. It was I who brought the 19th and 21 amendments to the Constitution and that is why SLPP MPs helped us. Al Jazeera said that I was a dictator and asked me to be a good democrat like in Qatar. I can’t be such.

By this, the state governance system was completely lost. If the Parliament was taken over, then the matter would have to be taken to the Supreme Court. Who was behind this? It was the Socialist Frontline party including Kumar Gunaratnam. Now we have adopted the 21st Amendment. Many people said that Mr Basil Rajapaksa should leave because he has dual citizenship. We have to accept it. How can the leader of the Frontline Party demand such whereas, he also had dual citizenship in Australia and Sri Lanka? One can’t be accepted while the other is not.

If we don’t want Basil to come because he is a dual citizen, then what about Kumar Gunaratnam? He is also not someone who has been elected through a vote. He too has dual citizenship. Basil Rajapaksa has allegations against him and when I was the prime minister I even took him to court. He was also remanded. What are the allegations against Kumar Gunaratnam? He is accused of killing Indian Peace Keeping personnel during the war in the North. This is our liberation.

What happened on May 09 and July 04? Some of our temples were threatened and burned. The Maha Sangha of the Malwatu and Asgiri temples were threatened and warned not to speak. Our Sangha was afraid and did not speak. Then how can Article 09 of the Constitution be protected? We are bound by the Constitution to protect Buddhism. Who was behind these? Our young monks were used for this. They went and asked the Mahanayake Theros to step down and hand over leadership to them.

Hindu priests were also threatened. The same goes for Muslims. The Catholic Bishops also said that they are against violence. Then who were the religious leaders that were with these people? We do not want to lead this country to Dinh Diem rule.

I will not allow any Dinh Diem or those around him. Now they say they are going to start the struggle again. Anyone can hold meetings, the JVP had meetings. The TNA is holding meetings in the North.

Anyone can hold protests or meetings legitimately. You can shout as much as you want and call me a dictator. I don’t mind. However, I must say one thing. Get your permit to protest before you take to the streets. Don’t obstruct vehicular movement and get onto a side of the road and protest. That’s all I am asking.

Yet, if anyone thinks that they can engage in another struggle without obtaining a license, stop it. I have instructed the police. If anyone tries to stage a protest to topple the government, I will not allow it. I will impose emergency law and deploy the military. There is no room for Dinh Diems in this country.

Who will go with Kumar Gunaratnam now? If he is accepted, then no one can speak against Basil Rajapaksa. People will not stand with them just because they shout every day. Let’s see which media created these forces. Let’s see which media asked people to set fire to certain places. I intend to appoint a commission to investigate this incident.

We appointed a commission following the Easter Sunday bombings. I could have also gone to it and given evidence. Then we need to appoint a commission for this incident too. We brought in the 22nd Amendment to the Constitution. We appointed all these commissions. Now we are ready to open the Parliament Budget Office. We have drafted a bill to limit election expenditures. Many more things have been implemented. Now that these commissions are functioning, let the opposition and the ruling party decide who will choose those five young people. Before the end of this December, take some of their names and arrange to appoint them by January.

We have to make a difference. I am not going to dissolve the parliament. There is a big problem in the economy of this country. Now many people in the country are fed up with elections and political parties are also fed up. Even if I go to the SJB meeting today, there will only be faces I know. There are no new faces. Young people are looking to see if there is a difference being made or not. After making that change, let’s go to a vote. Then anyone can take over power. That is why I am saying that this voting system needs to be changed. As long as there is a preferential system, there will be corruption in this country.

Back then, 25 to 50 million was spent to win a seat. Today we can’t even think of an election. We must think of these things. I say this system should be changed immediately. I want to tell the opposition, let us all work together. I can work with all of them. No problem. Let’s talk about how to do this program before the end of this year.

Once the third reading of the budget is done, let us all come together and agree on a permanent solution. I invite everyone to participate in the meeting which will be convened after the 11th.”

Tourist arrivals cross 600,000 mark after three successive blows

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Tourism in Sri Lanka has yet to recover fully from three consecutive blows inflicted by the 2019 Easter bombs, two pandemic years, and the island’s worst economic crisis in decades this year.

After more than 20 years of civil war, which ended in 2009,, the island of idyllic landscapes and white sand beaches was on pace to boost tourism. The sector grew to become one of the largest foreign-exchange earners in the country.

According to the Central Bank of Sri Lanka, tourism remained the third greatest source of foreign money in the five years beginning in 2014, accounting for 14 percent of the total, behind only remittances sent by the diaspora and the textile industry. In 2018, the island received a record 2.3 million visitors.

Sri Lanka has revised tourist arrival expectations for 2022 and also lowered revenue targets for the year, Minister of Tourism Harin Fernando said.

Total tourist arrivals for the year so far till end September is roughly 526,000 and generated only around 829 million US dollars in revenue.

The crossing of the $ 1 billion mark follows October earnings amounting to $ 75.6 million up from $ 53.6 million in September this year. In October last year earnings amounted to $ 59.3 million.

Tourism authorities had anticipated one million arrivals generating a revenue of 1.8 billion dollars.

Tourist arrivals to Sri Lanka have exceeded 600,000 year-to-date despite the multiple challenges, both nationally and internationally.

As per provisional data released by the Tourism Development Authority (SLTDA), the country has welcomed 31,302 tourists during the first 17 days of the month.

It also showed that the arrivals are averaging an improved 1,800 per day this month as against 1,355 in October, mainly boosted by Russian travellers.

Russia emerged as the top source market, reflecting 24% or 7,684 of total arrivals during the first 17 days followed by India with 17% or 5,279, the United Kingdom with 8% or 2,538, Germany with 7% or 2,115, and Australia with 5% or 1,527.

Minister Fernando also expressed confidence of achieving the set arrivals target of 800,000 by end of December, if the daily average arrivals pick up to over 2,500.

It is noteworthy that India also crossed 100,000 cumulative number of arrivals, to 100,766 securing the top tourist source market for Sri Lanka YTD, followed by the UK with 75,340, Russia with 65,173, Germany with 47,504, France with 31,826, Australia with 24,354, Canada with 23,348, US 17,371, Maldives 14,845 and Ukraine 14,376.

Tourism industry experts said the resumption of many new international airlines and charter flights in the first two weeks of the month as well as the global promotions at the ITM Paris, Indian and WTM were the key reasons for the favourable pick-up arrival figures.

SL free trade deals earn 600 percent more from exports than imports in 2022,

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Sri Lanka’s free trade deals have earned the country 600 percent more exports than imports in 2022, a Finance Ministry report said, as the country embarks on a renewed push to free consumers from vested import substitution businesses.

The Government recently engaged the private sector as part of efforts to resume negotiations of Free Trade Agreements (FTAs) which were put on the backburner by the previous administrations.

Up to September 2022, exports under four free trade deals totaled 229.1 billion rupees, up to September 2022., while imports were only 32.29 billion rupees, or exports were 7 times as big as imports.

An Indo-Lanka Free Trade Agreement generated 140.4 billion US dollars of exports and resulted in 5.1 billion rupees in imports. Compare to exports imports were around 600 percent.

A Pakistan Sri Lanka Free Trade Agreement had generated 13.1 billion rupees in exports and 2.9 billion rupees in imports.

An Asia-Pacific Trade Agreement had generated 56.5 billion US dollars of exports, and 2.7 billion rupees of imports.

Sri Lanka has more imports than exports because people in the country get foreign exchange to spend from avenues other than merchandise goods, such workers remittances and service exports.

Meanwhile the government also usually borrows abroad and invests in projects which tend to generate imports (a financial account inflow will generate a current account outflow).

In 2022 Sri Lanka’s imports started to collapse with private credit slowing and banks paying back foreign debt.

There were also import controls. Import controls, however do not result in overall falls in imported goods because credit will be given to areas which are not controlled.

For example, cars may be banned, but credit will still go for people to buy tractors or build apartments.

Currencies collapse when money is printed, driving credit with ‘fictitious capital’, and making overall outflows exceed inflows.

Sri Lanka is trying to strike free trade deals to grow like East Asia, but has been thwarted by monetary instability.

Forex shortages created by the central bank also strengthen the hands of ‘domestic producers’ or ‘import substitutors’ who claim to be saviors of the public by ‘saving foreign exchange’.

Secretary to the President Saman Ekanayake noted that the Government’s intention is to fast track FTA negotiations. He invited private sector stakeholders to creatively engage in this development initiative as they are the ultimate beneficiaries.

Ekanayake said that it is the vision of the President that Sri Lanka will integrate with the global value chains and with the largest economies in South Asia and East Asia and then expand to the east region linking to the Regional Comprehensive Economic Partnership (RCEP).

The Government intends to operationalize the FTAs with Singapore and has taken steps to resume the negotiations of Free Trade Agreements with India, China and Thailand where foreign direct investment can be largely attracted to channel the benefits to the goods and services trade through the Investment Trade nexus.

A Trade Negotiation Committee has already been appointed by the Cabinet of Ministers to reinvigorate the negotiations and these agreements will ultimately pave the path to gaining membership of the Regional Comprehensive Economic Partnership (RCEP) which consists of 30% of the world’s GDP, trade and population.

Sri Lanka consumer confidence drops to new depths in October 2022

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Sri Lanka Consumer confidence remains deeply pessimistic last month amidst wide spreading across all segments and public was resigned to likelihood that conditions will worsen in coming months and years, Sri Lanka Opinion Tracker Survey (SLOTS) opined.

The country’s economy, which faced extreme headwinds and heightened uncertainties during the first half of 2022, has shown signs of stability in the second half of the year this far.

This achievement was possible due to the myriad of multifaceted policy interventions undertaken to steer the economy to transition towards a path of stable and sustainable growth over the medium term.

Although the economy was on a recovery path subsequent to the abating of the COVID-19 pandemic, its progress was muted by the culmination of the entrenched twin deficits in the government budget and external current account.

As per the Institute for Health Policy (IHP) October 2022 update, consumer confidence remains deeply pessimistic about the economic condition, job availability, family income and spending..

It said despite fluctuations during the month, all three of IHP’s consumer confidence indices realized minimal net changes by end-October 2022.

The Index of Consumer Sentiment (ICS), the broadest measure of the public’s view on their personal economic status and the national economy and which ranges from zero to a potential maximum 100, increased one point to nine points.

The Index of Consumer Expectation (ICE), a measure of perceptions about the future, increased one point to 11 points.

The Index of Consumer Conditions (ICC), a measure of perceptions about current conditions remained unchanged at six points.

IHP Executive Director Dr. Rannan-Eliya said that recent surveys in other countries indicate that consumer confidence in Sri Lanka is the worst in the Asia Pacific region.

Taking the Index of Consumer Sentiment as comparison, levels in September ranged from 31 to 71 in other Asian economies, with Japan being the worst with a level of 31, still substantially higher than in Sri Lanka (8).

SLOTS combines data from a national sample of adults (ages 18 and over) reached by random digit dialling of mobile numbers and others coming from a national panel of respondents who were previously recruited through random selection.

The SLOTS is made possible by funding support from the Neelan Tiruchelvam Trust, The Asia Foundation in Sri Lanka and others, but the sponsors play no role in the study design, analysis, or interpretation of findings. Interested parties can contact IHP for more detailed data and results.

IHP is an independent, non-partisan research centre based in Colombo, Sri Lanka. The SLOTS lead investigator is Dr. Ravi Rannan-Eliya of IHP, who has trained in public opinion polling at Harvard University and has conducted numerous surveys over three decades.

MOH admits that there is a shortage of 152 types of medicines needed in the country

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Dr. Saman Ratnayake, Additional Secretary of the State Ministry of Health revealed that there is still a shortage of 152 types of medicines needed in Sri Lanka.

Joining the media program, the Additional Secretary further said that the delay in the process of importing medicines has caused shortage of medicines.

CB Governor strongly defends taxing of exporters

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Strongly defending the high taxing of exporters and others earning in foreign currency, Central Bank (CB) Governor, Nandalal Weerasinghe claimed that preferential tax treatment accorded to them for many decades have not brought substantial returns to the country.

He noted that these foreign exchange earning exporters and corporates diversifying its business overseas have so far failed to contribute their share for the betterment of island nation.

The CB Governor questioned as to whether the decades-long practice of lower taxes for foreign currency earning exporters and businessmen had delivered the country’s expected objectives.

He was speaking at the Post – Budget 2023 forum on Tuesday outlining key economic policy adjustments made by the CB to avert an economic crash-landing.

On the other hand the tax exemptions and concessions offered by the Board of Investment and other authorities expecting to attract foreign direct investments have not yielded the desired results.

“Successive governments’ maintained these preferential tax rates of 14-15 per cent for foreign exchange earners compared to 24 or 28 per cent for others,” he said.

He was responding to Sujeewa Mudalige, CEO PwC Sri Lanka who speaking at the forum expressed serious concerns on taxing exporters and other foreign exchange earners at the same level as the others at the proposed 30 per cent, which could be unfavourable to attract much needed foreign exchange.

He pointed out that even before the tax rate was raised to 30 per cent, companies had been diversifying businesses overseas instead of expanding in Sri Lanka owing to policy inconsistencies and poor doing-business conditions. The reason was that they receive very generous tax incentives from countries like Bangladesh, Vietnam, and Egypt etc.

The CB Governor emphasized the need of implementing 2023 budget proposals and fiscal and monetary reform measures to increase crucial foreign exchange inflows achieve stability in the economy averting the reoccurrence of the crisis.

CB, he said, is now compelled to tackle a liquidity shortage in banks, preventing the fall in short term market rates.

Treasury Secretary K. M. Mahinda Siriwardana said the country is facing a challenge to stabilise the economy and the private sector has a vital role to play in assisting the government to avert the economic crisis.

An SJB MP kicked out from today’s Parliament session

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Today (23), Speaker Mahinda Yapa Abeywardena removed Samagi Jana Balawegaya Member of Parliament Chaminda Wijesiri from the House.

This is due to the attempt to attack Nimal Lanza, the independent member sitting in the opposition, during a heated debate in the assembly regarding the holding of the local government elections today.

Galwewa Siridhamma Thero granted bail

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It is reported that Galwewa Siridhamma Thero, an activist of the Inter-University Student Union, who was arrested and detained under the Prevention of Terrorism Act, has been granted bail.

Following a motion called before the Colombo Magistrate’s Court today (23), it is said that he has been granted bail.

Accordingly, the Additional Magistrate ordered the release of him on two bails of 5 lakh rupees each, imposed a foreign travel ban against Ehimian and imposed a bail condition that he should report to the Counter-Terrorism Bureau on the last Sunday of every month.

Three people, including Siridhamma Thero, were arrested under the Prevention of Terrorism Act in relation to the incidents related to the political struggle that took place in recent days, and one student was released earlier. Wasantha Mudalige, convener of the Inter-University Student Union, is still in prison.

An explanation from the prison about the phone recording of Isuru Bandara and Dayasiri

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A phone conversation said to have taken place between Isuru Bandara Namatta, the partner of Thilini Priyamali, who has been arrested in connection with a large-scale financial fraud, and Dayasiri Jayasekara, a member of Parliament, is circulating on social media these days.

Prison media spokesman Chandana Ekanayake has clarified the facts regarding this audio tape.

Accordingly, the prison media spokesperson says that the cell where Isuru Bandara is being held has been searched and no mobile phone or anything else illegal has been found.

This suspect was remanded by Fort Magistrate Court on 19.10.2022 and he is currently detained in Nawa Magazine Prison.

The Prison Media Spokesperson also said that when the prison officials checked the special cell where the suspect is detained, no phone was found and the prison superintendent reported that Dayasiri Jayasekara did not visit the prison after the suspect was remanded.

Also, regarding the concerned audio tape, a statement has been obtained from the suspect, where the suspect has denied the allegation regarding this phone call, the prison media spokesman has mentioned.

However, Chandana Ekanayake, Prison Media Spokesperson, has stated that further investigation is being conducted regarding this incident.

Casual dress code is not applicable for teachers. The circular will be amended – Minister of Education

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Minister of Education Susil Premjayant says that the circular issued by the Ministry of Public Administration, giving permission to government employees to report to work in a casual dresscode, does not apply to teachers.

Accordingly, the Minister stated that the Secretary of the Ministry of Public Administration was instructed to amend the said circular.

The minister said this in response to a question raised in Parliament yesterday (22) about the fact that in the last few days, teachers in many parts of the island have come to school wearing other suitable clothes instead of saris or osari.