Long queues were seen near fuel sheds in a number of parts of the island yesterday (15).
Against the backdrop pf the CEYPETCO’s request to increase fuel prices, people were seen gathering at stations blaming the government, as well as those who voted for it.
MIAP
Sri Lanka’s Samurdhi Banking System, the rural bank network of the poorest of the poor, is nearly collapsing following the withdrawal of Rs.50 billion from this system in 2020 and owing to the failure to reimburse the money up to now, authorities of the bank warned.
The government has given an assurance that it will reimburse the money via the Treasury but it has repaid only Rs.7 billion leaving a massive sum of Rs.43 billion as unpaid dues for nearly two years, Secretary of the Samurdhi Development Officers’ Association, Chamara Kalumaddumage disclosed.
This money had been withdrawn from the Rs.200 billion Samurdhi fund to pay relief allowance of Rs.5000 for two months to four million beneficiaries in poorest of the poor families.
He noted that there was no financial allocation made to reimburse this money even from budget 2022 and thereby triggering a risk of a collapse in the Samurdhi Banking system.
General Secretary of Samurdhi Development and Agricultural Research Officers Association and SLPP MP S.A.D. Jagath Kumara disclosed that he has written to the country’s leaders requesting them to take immediate action to repay the balance Rs.43 billion to the Samurdhi fund.
He noted that failure to repay this sum to the Samurdhi fund is unreasonable by beneficiaries and he would protest along with them if no action is being taken to settle this matter by the authorities.
In addition to this relief payment, the Government has made an advance payment of Rs.10,000 to two million Samurdhi beneficiary families in April 2020 prior to the Sinhala and Tamil New Year.
This money has been released by Samurdhi banks and its recovery will depend largely on the duration and severity of the coronavirus outbreak, a senior official of the Samurdhi Development Department said.
This massive amount is still to be recovered from Samurdhi beneficiaries and the repayment has become a difficult task for them due to present economic difficulties in the COVID-19 pandemic period, he revealed.
A separate sum of Rs.25.72 billion has been disbursed among the poor as relief allowance for May 2020, official data showed.
For this amount, the government has raised additional sum of Rs.16 billion from a state bank loan with a Samurdhi Fund guarantee to pay Rs.5,000 relief allowance to the poor.
As a result of these withdrawals, Samurdhi banks are facing liquidity and capital adequacy challenges including subdued loan growth, liquidity issues and erosion of deposits amid lower interest rates, economic analysts said.
According to the Ministry of Finance data, there are 1,074 Samurdhi Banks, 331 Samurdhi Regional Societies, and one Samurdhi General Society.
These Samurdhi Societies own assets exceeding Rs.8.3 billion and the Samurdhi Bank alone has Rs.148.5 billion assets under its portfolio with a deposit base of over Rs.74 billion
The European Union (EU) Delegation to Sri Lanka, has allocated funds to help strengthen the local wellness tourism capacity to transform the island nation into an attractive destination for wellness tourism.
This will be carried out under the guidance of Sri Lanka Tourism. The resulting ‘Sri Lanka Wellness Tourism Stakeholder Project’ will be officially launched on 15 February 2022, the Tourism Ministry announced.
The launch will involve key stakeholders of the project where details of the project will be shared, followed by a group discussion on wellness tourism capacity development.
A follow up meeting will be held on the 25th of February to share findings and recommendations from all stakeholder meetings, site meetings and discussions with wellness tourism resorts, hotels and training providers.
A presentation of the findings determined through surveys carried out amongst wellness tourism organizations and training providers will also be presented this month.
The EU Delegation has contracted IBF International Consulting to undertake a technical assistance assignment to develop short term course curricula for Ayurveda therapists and wellness facility management in Sri Lanka in order to provide an authentic experience to tourists to grow the wellness tourism component for the country..”
The project will also consist of a ‘train the trainer’ and a supervised pilot roll-out course. Paul Penfold (Project Team Leader) will be in Sri Lanka for a 2-week mission to meet stakeholders and assess needs together with Dr Attanayake (National Expert) from 14 – 26 February.
With the wellness traveler generating at least five times more earnings than the standard tourist, Sri Lanka Tourism is strategically working with key stakeholders to position the destination to cater to the demands of this high yielding segment.
The Authorities are focusing on product and infrastructure development, training and guidance to the SME sector and the larger industry, targeted marketing and promoting investor opportunities, with the assistance of external experts.
With its Ayurveda and yoga traditions, rich heritage and culture, authentic and distinctive cuisine, warm and hospitable people, abundant flora and fauna and a multitude of water-based activities the island is ideally positioned to welcome the wellness traveler.
Sri Lanka will have to compete with regional wellness destinations such as Kerala and Bali, destinations that have been focusing on health and treatment-based experiences for many years.
The island can however elevate its offering above health to holistic wellness enabling the differentiation of product to appeal to the various segments of travelers within the sphere of Wellness Tourism, ministry officials said.
Sri Lanka received 40,000 metric tons of fuel purchased by the Ceylon Petroleum Corporation from the Indian Oil Corporation kick starting the initiative of tackling fuel crisis with Indian assistance
The IOC had submitted a quotation for fuel supplies based on a request by the Energy Ministry while the IOC has also granted a 60-day period to make the payment.
Sri Lanka has decided to purchase petrol and diesel, 40,000 metric tonnes each, from the Indian Oil Corporation, according to a Cabinet decision as part of the government’s bid to tide over the current fuel and energy crisis faced by the island nation.
The Lanka IOC, the Sri Lankan subsidiary of India’s oil major Indian Oil Corporation (IOC), has been in operation in Sri Lanka since 2002.
According to the Cabinet statement, the Ministry of Energy has discussed with the IOC to procure 40,000 metric tonnes of diesel and 40,000 metric tonnes of petrol.
“Accordingly, the Indian Oil Corporation has agreed to supply a shipment of 40,000 metric tonnes of diesel,”Energy Ministry said.
Sri Lanka in the recent weeks has been considering different options to facilitate measures to prevent fuel pumps from going dry as the island nation was faced with a severe foreign exchange crisis to pay for its imports.
Energy Minister Udaya Gammanpila had predicted fuel shortages in the country due to the inability to pay for imports.
When the crisis loomed, the government approached the IOC’s local operation LIOC to import fuel for the government.
The LIOC had earlier declined the request as they themselves were affected by the shortage of foreign currency to import.
Sri Lanka is currently facing a severe foreign exchange crisis with falling reserves.
The country is grappling with a shortage of almost all essentials due to the lack of dollars to pay for the imports.
Additionally, power cuts are to be imposed at peak hours once again as the state power entity is unable to obtain fuel to run turbines.
The state fuel entity CPC has stopped oil supplies as the electricity board has large unpaid bills.
The only refinery was recently shut as it was unable to pay dollars for crude imports.
Sri Lanka is in the process of finalising the Indian government’s US$ 1 billion assistance package in addition to other balance of payment support.
The billion-dollar line of credit f is to be used to avert a food crisis while allowing for the import of items and medicines, official sources said. Additionally, there will be US$ 500 million for importing fuel from India.
The Minister of Energy Udaya Gammanpila, speaking at the event organised to accept the stock of fuel stated that while Sri Lanka is undergoing a large foreign exchange crisis, therefore has been experiencing difficulties in financing oil imports.
However, the Minister added that Sri Lanka could not wait until the US$ 500Mn credit line was finalized, and the country was in need of fuel urgently due to the newly created demand which came from the power sector.
The Indian High Commissioner of Sri Lanka, Gopal Bagley also speaking at the event said that this as two countries have shared history and also underwent difficulties due to the recent COVID-19 pandemic, India is committed to stand by Sri Lanka at this time of crisis
With no foreign cash coming in as the tourism and foreign remittances crippled in economic setbacks, the government is now allowing many imports to move forward even under difficulties, Finance Ministry sources said.
The government has neither banned nor imposed controls on imports except for vehicles and gold, as some have commented at various occasions and thus anybody can import anything without an issue, according to the Central Bank.
“People can import whatever they want but we have to import the ones that everyone needs,” said Central Bank Governor Ajith Nivard Cabraal, making clarity on the recent decision to bring the licensed banks also to bear part of the import bills of essential goods.
Sri Lanka had to impose import controls on certain goods since March 2020, predominantly to preserve foreign currency and the number of goods added to the list stretched over time as part of the government’s policy on import substitution, which proved to be a complete flop.
What really happened was the cronies, who got protection from foreign competition, took advantage at the expense of the hapless consumer, who is now paying higher prices even for the staples.
Turmeric and rice are classic cases in point, as people are now paying more than double the price for a kilo of rice and other essential commodities than before the pandemic two years ago.
“Actually, we have not placed any restrictions other than for vehicles and items like the tiles for which the restrictions were placed for other reasons and gold. The rest of it is all allowed,” Cabraal said.
Despite there are no import controls except for a handful of items, importing has become a nightmare, as traders find it extremely difficult to open letters of credit with their banks, due to the prevailing dollar shortage.
As seen from the interim reports filed by most of the companies engage in trading, they cited the foreign exchange shortage next to the cost of inflation as the biggest issue facing them in carrying out their business operations.
Sri Lanka has to either float its currency or raise interest rates or do both to ensure that it can trade freely with the world without undermining the economic prosperity of its people, as happened through its post-independence history.
Lack of competition and economic freedoms have kept the people of Sri Lanka in poverty and they would continue to remain impoverished unless economic freedom and competition are not ensured.
The government has adopted this stance following the issuance of the EU mission in Colombo ‘s statement urging Sri Lanka to do away with the current import ban imposed in the wake of the debilitating economic crisis caused by the corona pandemic and inconsistent and back firing policies, economic experts said.
Sri Lanka imposed restrictions to save foreign reserves as major revenue sources, such as tourism, garment trade and foreign remittances dropping sharply were affected by the pandemic.
EU also expressed concerns over Sri Lanka withdrawing from the Geneva Resolution, 30/1 co-sponsored by the previous government in Oct 2015.
India has launched a probe into the deaths of two fishermen in the northern side of Sri Lanka, in what they suspect as having links to Indian fishermen sailing in the area.
Protests began to erupt across the Jaffna Peninsula upon the deaths of fishermen Joseph Premkumar and Arun Kumar Thaniyamaran, both of whom were residents of Vattirayan, Vadamarachchi, as their bodies were washed ashore on the day after their fishing boat had collided with an Indian trawler and sunk on January 30, 2022.
Demonstrators alleged that Indian fishermen who had breached the border had assaulted their two mates Premkumar and Arun Kumar.
Another Indian trawler is alleged to have ambushed more Vadamarachchi fishermen and thrown petrol bombs at them.
Benzinlas Jesurasa, Leader of the Indian Fisheries Federation went on public record stating that despite the fishermen’s protests alleging that their two mates were assaulted and their boats were sunk, the truth to the event was never discovered, nor was what had actually happened at sea that night ever revealed.
Accordingly, Indian fishermen’s associations, along with the Tamil Nadu state government, are investigating whether Indian fishermen were involved in the deaths, he added, raising suspicion whether the situation has developed a conduit for the two Tamil fishing communities of the North, Sri Lanka and India to unite in the backdrop where India’s Central Government and the Sri Lankan Government have abandoned them.
“Now is the time to resolve the issues between the fishermen of Tamil Nadu and North, Sri Lanka who belong to the same language and culture,” Jesurasa went on, adding that the two communities had been fishing in the ocean as if they were close relatives.
Meanwhile, Rameshwaram fishermen, who were protesting against the Central Government of India and the Sri Lankan Government, demanded the release of the 11 Indian fishermen arrested by the Sri Lanka Navy and their vessels, thereby putting an end to the assaults and arrests, and the suspension of the auction of their boats and equipment seized by the Navy.
The Central Government of India has been given 15 days to do so beginning from last Friday (11).
The Sri Lanka Navy has chased away Tamil Nadu fishermen who were fishing in the seas near Dhanushkodi, damaging fishing nets worth around 100,000 Indian Rupees, alleged the Rameshwaram Fishermen’s Association.
In the backdrop, Rameshwaram fishermen are compelled to sail to places like Mangalore in search of fish, they added.
Focusing on the upcoming UNHCR sessions and recognizing the importance of the African region where the countries have emerged as a cohesive group of nations, the High Commissioner of Sri Lanka to South Africa, Siresena Amarasekara held several meetings with government officials of South Africa and envoys of countries accredited to South Africa to discuss the achievements made by Sri Lanka in matters on human rights. He met High Commissioner of Namibia, Veiccoh K Nghiwete, Ambassador of Zimbabwe, D.D. Hamadziripi, High Commissioner of Malawi, Stella C. Hauya Ndau and Charge de Affair of Switzerland in South Africa, Veronique Haller, in this regard.
At these meetings, High Commissioner Amarasekara emphasized the importance of a domestic mechanism to resolve internal conflicts within the domestic socio-political environment, rather than an imposed mechanism by external parties. He stated that the involvement of the external parties further complicates ethnic issues, rather than resolving them. The government of Sri Lanka has the authority, wish, and capacity to resolve it. But due to unwarranted external involvements, the government that resolves the problem has become the accused and is prevented from performing its task. The High Commissioner further stated that after the conflict, the Government of Sri Lanka has done almost everything possible to provide relief to affected people. He also stated that due to unnecessary international pressure, the government is compelled to sacrifice its meager resources to play a defensive role. He said that if these international parties are genuinely interested in the issues of the Tamil community in Sri Lanka, they should support the government in its effort to provide relief to the affected. Encouraging the pressure groups to work with the government to find a solution is a duty of the countries that brought the resolution before the UNHRC, and assist to reduce the gap between different ethnicities in Sri Lanka, he said.
At these meetings, the High Commissioner explained that the word ‘accountability’ has no meaning if the responsible parties can’t correct the mistakes done by them and not serve the affected parties. High Commissioner Amarasekara invited them to look into this problem from a wider perspective without depending on unfounded and fabricated narratives. He further referred to Lord Naseby’s book and various articles written by him on the ethnic issue of Sri Lanka, revealing factually correct and impartial analysis. High Commissioner Amarasekara requested impartial African nations to encourage those parties who have been misled by biased information, to revisit the resolution against Sri Lanka with an open mind.
Sri Lanka High Commission
Pretoria
15 February 2022
On 14th February 2022, the SLTDA Chairperson Ms Kimarli Fernando withdrew an application preferred by her through her lawyers seeking permission from Court to move the Contempt of Court Inquiry date for her to travel overseas.
This came up in the backdrop where the District Court of Colombo pursuant to an inter-parte Inquiry, overruled the objections and affirmed an Order to issue summons on the Sri Lanka Tourism Development Authority (SLTDA), its Chairperson Ms Kimarli Fernando, its Director General Ms Dhammika Wijesinghe and its Additional Director General Ms Anoma Nandani for allegedly violating an Interim Injunction issued by the District Court.
Pursuant to Contempt of Court summons being re issued, SLTDA Chairperson moved the Court by way of a motion to refix the inquiry date, in order for her to travel overseas. This was objected to by the Plaintiff and filed a Motion seeking for a Warrant of Arrest on the basis that the SLTDA Chairperson has failed to appear before Court in several occasions despite the Contempt Summons being issued on her. The Plaintiff complained that the SLTDA Chairperson is attempting to evade Court.
When this matter was taken up on 10th February, the SLTDA Chairperson was not present in Court and the Plaintiff objected to making any application by lawyers without the presence of the accused. When the matter was taken up again on Monday (14th), the SLTDA Chairperson was not present in Court and President Counsel Mr. Romesh de Silva appearing on the instructions of Mr. Sanath Wijewardena informed the Court that they are moving the Court to withdraw the application to travel overseas rawn.
The Plaintiff, LRL was represented in Court by Counsel Mr. Nishan Premathiratne with Mr. Pravi Karunaratne and Vikum Jayasinghe, on the instructions of Mr. Julian Pratheep, Attorneys-at-Law.
The Sri Lanka Tourism Development Authority (SLTDA), its Chairperson Ms Kimarli Fernando, its Director General Ms Dhammika Wijesinghe and its Additional Director General Ms Anoma Nandani are required to be present in Court on 16th March 2022 to answer the Contempt of Court charges.
The Public Utilities Commission of Sri Lanka (PUCSL) today (15) announced that it had not granted approval to the long term power cut requested by the Ceylon Electricity Board (CEB) last week.
Speaking to a briefing today, PUCSL Chairman Janaka Ratnayake emphasised that the situation can be managed without launching a power cut in accordance with the data.
Accordingly, instructions have been given to drop the generation of hydro power by fifty per cent until the next rainfall.
The CEB had requested the PUCSL to grant them approval to launch a power cut in the months February, March and April. The PUCSL held a discussion with the CEB in this regard on Saturday (12) and later told media that their conclusion will be disclosed today.
The PUCSL has further made recommendations for public and private institutes and the general public to manage electricity consumption.
MIAP
A signature drive organised by ‘Jana Yukthiya’ convened by MP M.A. Sumanthiran was held in front of the Colombo Fort Railway Station today (15) in objection to the Prevention of Terrorism Act (PTA).
The program was initiated in the North and East as well.
The signature drive in the Colombo District was endorsed by the Archbishop of Colombo His Eminence Malcolm Cardinal Ranjith by adding his signature as the first person.
Joining the event MP Shanakiyan Rasamanickam stated that the PTA, which was introduced as a temporary law in 1979, is still being amended and enacted and the law is also being misunderstood by the people.
Although the enactment of a law preventing terrorism should exist in any country, the law enforced in Sri Lanka is applicable to arrest any person at will, the MP revealed. According to the PTA, endorsing this very campaign could subject one to being arrested, Rasamanickam pointed out.
The event was attended by a number of opposition political representatives, trade union members and civil activists.
MIAP
