President Gotabaya Rajapaksa has arrived in Parliament a short while ago to attend today’s sittings.
MIAP
Sri Lanka continues its stance on ‘one China policy’
Sri Lanka is to continue to stand by the ‘one China policy’ and support China’s sovereignty and territorial integrity, the Foreign Ministry said.
The Foreign Ministry said that the assurance was given when the Minister of Foreign Affairs, Professor G.L. Peiris met with the Ambassador of China, Qi Zhenhong, at the Ministry of Foreign Affairs last week.
Following the exchange of pleasantries,Minister Peiris appreciated China’s continued assistance to Sri Lanka.
The Foreign Minister also apprised the Ambassador of the current situation in the country and the shortage of fuel,food and pharmaceutical equipment which have adversely affected the economy of Sri Lanka.
The Minister added that bilateral partners and international agencies are in regular discussions to address these challenges.
The Foreign Minister assured the Chinese Ambassador that Sri Lanka will continue to stand by ‘one China policy’ and pledged Sri Lanka’s unwavering support to protect China’s sovereignty and territorial integrity.
The Minister mentioned that he held discussions with the leaders of 12 countries on the current situation in Sri Lanka on the flanks of the Commonwealth Heads of Government Meeting (CHOGM) in Kigali, Rwanda and the assistance required by Sri Lanka at this critical juncture.
He briefed the Ambassador on the ongoing discussion with the IMF for financial assistance as well as restructuring(reformulating) Sri Lanka’s debt. As well as the measures that are put in place by the Govt to address the most pressing issues.
The Chinese Envoy appreciated the Government of Sri Lanka position and its consistent stance on ‘one China policy’. Ambassador Qi assured that the Chinese Government would remain engaged with Sri Lanka towards extending assistance to Sri Lanka in every possible manner.
The Foreign Minister extended Sri Lanka’s profound gratitude to the Government of China for their unstinted support. Senior officials of the Ministry of Foreign Affair sand officials of the Chinese Embassy were present at the meeting.
SL to attract tourists from Indonesia amidst tourist arrival hike in June
In a fresh move to attract more tourists amidst the increased tourist arrivals in June ,Sri Tourism Promotion Bureau to promote the ialsnd nation as a potential tourist destination among the Indonesian public.
The Embassy of Sri Lanka in Indonesia in collaboration with the Sri Lanka Tourism Promotion Bureau organized a Sri Lanka tourism promotion event on 24-25 June 2022 at the Bundaran HI MRT Station in Jakarta, the main hub in the Jakarta MRT ( Mass Rapid Transit) System, 9,842 people travel through this station every week day and 10,470 on a Saturday.
The Embassy organized this event to create awareness of Sri Lanka as a potential tourist destination among the Indonesian public.
Fifty photos depicting historical monuments, natural wonders, Sri Lankan exports and delicious cuisine were displayed and an interactive booth was organized to answer questions raised by the visitors. Minister of Tourism and Creative Economy of Indonesia Sandiago Uno visited the event and showed a lot of interest in Sri Lanka as a ‘must visit’ destination.
At the opening ceremony, Ambassador of Sri Lanka to Indonesia and ASEAN Yasoja Gunasekera highlighted the diversity of experiences Sri Lanka offers a discerning traveller.
Operation and Maintenance Director of the PT.MRT Jakarta Muhammad Effendi expressed appreciation to the Embassy for organizing the event at the Bundaran HI MRT Station.
Tourist arrivals in June increased by 8.8% to 32,865 from the lowest 30,207 in May despite the ongoing economic crisis, whilst surpassing the 400,000 mark in the first half.
The slight uptick in arrivals was largely influenced by the Australia tour of Sri Lanka which commenced in early June.
Arrivals in the first six months amounted to 411,377 (as against 17,000 in COVID-hit 1H of 2021), a welcome development for the triple-hit tourism industry but performance is still down by 50% compared to the same period in pre-COVID.
In June, the largest source markets were India with 6,650 tourists or 21% of the total arrivals, followed by the UK with 3,199 tourists (10%), and Australia with 2,448 (8%), the data released by the Sri Lanka Tourism Development Authority (SLTDA) showed.
It also showed that the daily average arrivals have slightly picked up to 1,095 in June, compared to 974 recorded in May.
The highest daily average arrivals in March was over 3,600 and it dropped to 2,099 by the end of April following the economic crisis and political turmoil.
India also stood strong as the top tourist source market for Sri Lanka YTD with cumulative number of arrivals at 68,601, followed by UK 49,453, Russia with 46,337, Germany 33,373, France 21,683, Australia 14,476, Ukraine 13,781, Canada 12,968, Poland 12,709, and US 11,626.
Banks virtually halt lending to private borrowers
Banks have virtually stopped lending to private borrowers as interest rates climbed to restrictive territory and the economic conditions turned from bad to worse prompting them to tighten credit conditions to contain any more damage to their asset quality.
The demand for credit also fell off a cliff after banks quickly followed suit when the Central Bank raised key rates by a whopping 700 basis points aimed at tightening credit conditions and thereby to stem the demand-driven inflation in the economy.
According to the data released by the Central Bank last week, licensed commercial banks were seen expanding their total outstanding private sector credit by just Rs.2.0 billion, which also has a element of the rupee depreciation impact on their foreign currency denominated loans, as such loans get converted at the weaker exchange rate at the month end resulting in higher rupee value.
Hence, this reflects that private credit may have in fact contracted in May if not for the rupee depreciation impact on the portfolio.
Instead what banks do is raise deposits and lend to the government through Treasury bills and bonds, which generate them a convenient margin at much less credit risk.
However, since June, banks are also seeing some deceleration in the deposits coming into the system as liquidity conditions are getting tightened in the market while the hyperinflation hammers the real incomes of people.
The consumer prices in the Colombo district rose by an unprecedented 55 percent in June while food prices soared by 80 percent, reflecting that money has lost its value completely in Sri Lanka.
Meanwhile, banks fear a wave of defaults which could deal a massive blow to their asset quality, earnings and capital.
Banks were reported to have declined a request by the tourism sector for an extension of the loan moratorium as the hard-hit industry has been under payment holidays from 2019.
Meanwhile, net credit to the government from licensed commercial banks declined by Rs.49.0 billion in May while the credit to public corporations rose by Rs.25.1 billion.
The money supply measured by the broad money or M2b expanded by 18.6 percent in May, slowing from 20.0 percent in April. The monetary aggregates are expected to further narrow in June and in the ensuing months.
Parliamentary committee to probe LP gas deal with OQ Trading
The Committee on Public Enterprises (COPE) is to summon the chairman of Litro Gas and its officials today Tuesday 05 to inquire into allegations that a recent deal with Omani company OQ Trading was marred by irregularities.Its Chairman, Prof. Charita Herath stated that the officials of the company have been instructed to appear on Tuesday at 2PM to answer allegations of irregularities in the LP Gas deal with OQ trading of Oman whose local agent was 3D and H company with high political connections.
Accordingly, Prof. Herath stated that the Chairman of Litro Gas, top management including the Board of Directors, the Chairman and the Board of Directors of the parent company of Litro Gas, Sri Lanka Insurance Corporation,as well as the Secretary of the Ministry of Finance have been summoned to COPE.
COPE sources said the officials would be summoned pursuant to a request by a COPE member parliamentarian S.M. Marikar to examine these allegations.On Thursday Litro Gassaid it has successfully procured 100,000 metric tonnes of LP gas which will be enough to supply the country gas requirements for next four months from the Omani company.
However the deal has been marred by controversy with allegations that the contract to Omani company OQ Trading was given even though its price is higher than that offered by Siam Gas Trading.
The original tender for 280,000 metric tons of LPG offered has been changed to 100,000 MT spot purchasing contract and awarded it to OQ Trading, informed sources said.
By this procurement, the country stands to lose millions of dollars at a time where the country has been offered US$70 million by the World Bank for gas purchases and the Government separately was in a position to provide $20 million for LP gas imports.Startling information relating to the deal emerged indicating the influence of an invisible hand in the manipulation of the tender process in favour of the one and only company to dominate in the supply of LP gas to Litro during the past few years.
A former Litro chairman confirmed that local representatives of a foreign company which is supplying gas were behind the severe gas shortage and manipulations of LPG tenders in the country for a long time as well as several officials who are aiding and abetting them.
Over the past two years, Litro has been selecting Oman Trading Gas (OQ Trading) as its gas supplier, on a procurement basis. By February 28, the tender was due on expiration and a new tender was called to select a suitable supplier for the supply of 280,000 MT of LPG for the year 2022-23.
There was an indication of the arrival of a gas shipment on or after July 22 in accordance with an order placed by Oman (OQ) Trading Company which has gained the tender for the spot purchase of 100.000 MT at $105 per MT, sufficient to meet the local demand for four months.
Energy Ministry sources said.Finance Ministry sources revealed that this was an irregular deal ousting the lowest bidder Siam Gas Trading Pte Ltd for 280,000 MT for the year 2022-23 at the price of $96 an awarding the contract to Oman (OQ) Trading which quoted the price of $129 at the opening of bids on April 26.
However Litro Gas requested spot quotation on April 27 for 15,000 MT citing tender processing and finalising delays due to unknown reasons for which Siam Gas offered 16,500 MTat $102. But Litro Gas did not consider this offer and continued to buy from the existing supplier Oman Trading at a higher price which was the price offered to them for the previous tender of purchasing of LP Gas for Litro Gas Lanka Ltd for the period of two years from March 1, 2020.
On May 3, Litro Gas officially informed Siam Gas that their commercial bid has been approved by the Cabinet for the total quantity of 280,000 MT at the price of $96 per MT.The contract signing was delayed as the payment terms specified in the tender document which was a Standby letter of Credit for the total quantity of the tender was not adhered to by Litro Gas owing to non-availability of dollars to open the LC.
Then Siam Gas agreed to a Standby LC for $30 million to cover uninterrupted supply of 40,000 MT which Litro Gas could not meet resulting in the contract signing being further delayed.wingto non-availability of dollars Litro Gas again made a request on May 27 for a spot quotation for 15,000 MT for June 2022 delivery.
In the meantime, Siam Gashad 6,600 MT in stock for immediate delivery in June 2022 to meet the local demand along with another 9,900 MT. This information has been suppressed by some Litro Gas officials, official documents divulged.
Gas then offered LitroGas a price of $110 for 40,000 MT for July- August 2022 delivery which has not been considered by Litro Gas since they were very keen to purchase from Omantrading at a higher price.According to official documents pertaining to this deal, the spot purchasing contract was awarded to this Omani company for 100,000 MT of LPG at the higher price of US$ 129 per metric ton after receiving the Cabinet approval.
Litro Chairman Litro –Muditha Peiris has sent a letter to the Siam Gas Trading Pte Ltd on June 23cancelling their offer of US$ 96 per MT which is still valid for acceptance.
The Embassy of Sri Lanka in Brasilia participates at the INNOVA Summit 2022
The Embassy of Sri Lanka in Brazil participated at the INNOVA Summit 2022 held at the Convention Centre in Brasilia from 21 to 23 June 2022.
INNOVA Summit is one of the largest Trade and Industrial Promotional events in Latin America which brings together entrepreneurs, small and medium sector companies and interested parties committed to present new innovations in the Latin American region. The event also provides a platform for networking between business people and investors, encourages and facilitates International Trade by organizing Business to Business meetings, Workshops and other Seminars etc.
Over 100 business entities and Diplomatic Missions had stalls at the INNOVA 2022 and the 3 day Summit attracted approximately 20,000 visitors.
Over 3,000 people visited the Sri Lanka Embassy stall that provided a platform to promote Sri Lankan products such as different flavours of Ceylon teas, cinnamon and spices, coconut products, handicrafts, table mats and batik garments etc. Visitors also given an opportunity to taste Sri Lankan food and Ceylon teas.
At an interview with the Brazilian radio, the Ambassador of Sri Lanka to Brazil Sumith Dassanayake highlighted the vast opportunities available in Sri Lanka for Brazilian and South American entrepreneurs.
Ambassador Sumith Dassanayake also encouraged Brazilian and South American tourists to choose Sri Lanka as their next travel destination as the country offers a wide range of tourism activities like exploring archeological cities, wild life, adventure tourism, meditation and spa and culture and gastronomy.
The Embassy also screened video clips on Sri Lanka Tourism and Trade as well as the country’s achievements as a leading ICT hub on the mega digital screen at the main lobby of the Convention Centre, capturing the interest of visitors.
The Embassy of Sri Lanka,
Brazil
04 July, 2022
Ceylon Tea Seminar at the Embassy of Sri Lanka in Tokyo
The Embassy of Sri Lanka in Japan facilitated a Seminar on Ceylon Tea organized by Japan Tea Association on 25 June 2022 at the Embassy premises. Over 35 Japanese tea lovers attended the event organized with the objective of popularizing Ceylon tea among Japanese consumers.
Chargé d’ Affaires a.i. of the Embassy Sesath Thambugala, in her address briefed the gathering about the unique characteristics of Ceylon tea, the regional varieties, and health benefits of tea consumption. She also took the opportunity to request the participants to support Sri Lanka by purchasing Sri Lankan products at this juncture where the country is striving to increase foreign exchange earnings for economic revival.
The program included a video presentation on Ceylon tea, a tea brewing demonstration by a certified tea instructor from the Japan Tea Association and a lecture on how to make a good cup of Ceylon tea and tea infused beverages.
WALTZ Co., Ltd., authorized importer of Dilmah Tea to Japan sponsored gift packs of varieties of Ceylon Tea for all participants and made a presentation on “Ruhuna” tea variety and its versatility.
Embassy of Sri Lanka
Tokyo
04 July, 2022
SRI LANKA: 22nd Amendment Bill – Fundamentals are wrong
By Basil Fernando
The amendment of a constitution is a serious task. However, some may argue that it is not such an important task as far as Sri Lanka is concerned. That is because of the most trivialized manner in which Constitutional Amendments have been brought about in Sri Lanka in the recent years. However, if the amendments to a constitution are treated in such a fashion, then that will further affect the nation and the State negatively. In a country which has already taken a downturn, introducing any Constitutional Amendment in such a trivial manner itself needs to be condemned.
For a constitutional amendment to be meaningful, it must be concerned with the extension of the fundamental notions around which the existing constitution is based. Trying to match a set of fundamentals in a constitution with a contradictory set of principles set out in an amendment is virtually an absurdity. The fundamentals that belong to the main instrument which is the 1978 Constitution will in any case prevail against such Amendments and the Amendments would be of very little use except to create greater obstacles to national objectives.
As the Constitution of the Republic, the 1978 Constitution is fundamentally flawed. The most foundational notion of a republican constitution is the foundational notion of the rule of law. It is the rule of law that determines the content and the structure and the depth of the constitution. The 1978 Constitution was an attempt to displace the rule of law and to replace it with the rule of the Executive. The making of republics in history has happened in the opposite direction. The republic was developed to subdue the over powerful executive. The fundamental principle of a republic was the rule of law. Thereby, everyone was brought under the laws that were made publicly.
Thus, the very notion of the sovereignty of the people is inseparably bound with the notion of the supremacy of the law. If the supremacy of the law is replaced, then the sovereignty of the people becomes meaningless. The way that people by electing a government hand over their sovereignty to the government is again a false position because the peoples’ consent to obey a government is based on the notion that the government will conduct itself only within the framework of the rule of law. Thus, what protects the peoples’ sovereignty is the rule of law. It also protects the state itself because all attempts by the executive to displace the rule of law also results in the undermining of the framework of the state itself.
In Sri Lanka, by a gradual process, the state became a negative institution which exists even against its own interests and naturally against the interests of the people. What Sri Lanka is faced with at this moment in terms of the economic collapse, the collapse of the political system and also the enormous hardships that virtually threaten the way of life and even the survival of many people, is a direct result of that process of the displacement of the rule of law by the 1978 Constitution.
Therefore, it is not possible to bring about an amendment to the 1978 Constitution. Where the fundamentals are wrong, then the fundamentals have to be reinstated. If the fundamental notion of the rule of law is to be reinstated within the framework of the Constitution of Sri Lanka, then the existing 1978 Constitution will cease to exist. The 1978 Constitution and the rule of law are opposites. One cannot exist without destroying the other. So far, the arrangements of the 1978 Constitution have been destroying the rule of law. If there is going to be a change, it is necessary to develop the fundamental law of the country on the basis of the foundational principle of the rule of law, whereby the ideas as well as the structure of the 1978 Constitution will be completely negated.
Executive President of a Country with An Empty Treasury
In order to popularize the approach of amending the Constitution as an alternative, the propaganda line that has been followed is to state that the 22nd Amendment to the Constitution will weaken the Executive President. The Executive President is only a creature of the 1978 Constitution. The only way to displace the Executive Presidential system is the replacement of the rule of law within the framework of the Constitution. When the rule of law principle is reinstated, the Executive Presidential problem will become irrelevant.
The Parliament is also a Creature of the 1978 Constitution
The argument that the powers of the Executive President should be handed over to the Parliament is itself flawed. The Parliament as it exists today is also a creature of the 1978 Constitution. Thus, the Executive President and the Parliament are both creatures created under the 1978 Constitution. They are part of a common structure. The purpose of the Parliament was no longer to be an independent institution which has the power to make the laws through a public process solely for the benefit of the State and the people. That kind of Parliament ceased to exist by the enactment of the 1978 Constitution. If Parliamentary supremacy should exist within the Republic, that Constitution must be replaced. For that, it is essential to go back to the creation of a constitution on the foundational principle of the rule of law.
Where the rule of law is absent, the parliament itself is an enemy of the state and the people. All the destruction that was caused in Sri Lanka is not only a product of the Executive President but also a product of the subversive Parliaments which were elected under the 1978 Constitution. Had it not been for the Parliament, the Executive President could not have achieved the negation of good governance within the country and paralyzed the functioning of public institutions which are essential to the well-being of the State and also the people. Therefore, a Parliament that is equally responsible for the destruction caused in the country cannot be the replacement of the Executive Presidential system. For a parliament to function as a parliament of a republic, first of all, the constitution must reinstate the principle of the rule of law as the basic principle governing the entire constitution and its structure and functions. That will strengthen not only the executive and the parliament, but also the public institutions which are essential for the functioning of a government. At the moment, Sri Lanka is witnessing the failure of such public institution as a result of the situation brought about by the 1978 Constitution which created the Executive Presidency and the Parliamentary system with a very negative character. This negative character could be removed only by removing its cause, which is the displacement of the fundamental notions of the anti-democratic Constitution.
Executive Presidency has already been Dwarfed
In any case, the Executive President of Sri Lanka is now weaker than any other Head of State anywhere in the world except perhaps similar places like Lebanon. When the executive cannot command the nation’s treasury, then it has lost all its capacity and power. The Sri Lankan Executive President does not have a Treasury at his command. He cannot even bring the most essential goods to the nation and also maintain the most essential services without causing hyper inflation and enormous hardship to the people. Purely on paper, the president may have a lot of powers. In reality, today, his power is of no consequence. Everyone ignores him, particularly those sectors of the business communities which are exploiting the present situation for their own betterment. The executive president cannot in any way command his forces in order to even to ensure that whatever little wealth that is there within the nation be utilized for the benefit of the state and for the benefit of the people.
Frank Kafka’s Hunger Artist
The situation of the Executive in Presidency in Sri Lanka reminds one of a short story written by Frank Kafka on a hunger artist. The hunger artist came to attend public exhibitions where many other artists also came and did their performances. His art was to starve himself for many days. The longer he remained in starving, the more the crowds came and watched his situation. However, as time passed, many other new attractions came into these playgrounds and the attention of the people shifted to these new fashions. The hunger artist was ignored. However, he kept on his fast to an extent that finally he even forgot the need to eat at all. The cage in which he performed was there but nobody remembered him. That is the fate that is awaiting the Executive Presidential system in Sri Lanka. That process has already been completed. It is an institution that nobody wants and against that institution, the entire nation has arisen.
22nd Amendment as a diversion
The issue is, what is to replace the 1978 Constitution? This is an issue that needs to be addressed. The 22nd Amendment Bill is an attempt to create a diversion from the central task that needs to be addressed if the country has to find its way out of this tremendous calamity of economic crisis, the political system crisis and also crisis in all aspects of life in Sri Lanka. Wasting time on such diversions may be a past time for some politicians who may seek their own advantages, still imagining that the old world still exists. The old world is dead in Sri Lanka.
The paramount demand in Sri Lanka should be the restoration of a republican constitution with the foundational notion of the rule of law at the centre. That will bring about the order that is required for the country and also that will strengthen the public institutions that will serve the country under these circumstances. Above all, the rule of law is the greatest barrier against the rampant corruption that has spread like cancer into all aspects of governance within Sri Lanka. All public institutions are affected by this and the people are suffering as a result of this overwhelming corruption. Corruption can in no way be dealt with unless the rule of law is restored and law enforcement is given the primacy of place that it deserves in any functional state.
Asian Human Rights Commission
Colombo Swimming Club at War
Comment by a concerned citizen who is a member of the Colombo Swimming Club, divulging staggering events surrounding the club.
Dear fellow members,
I am addressing this to you as a long standing member of our club which is now unnecessarily being dragged into political confrontation to the detriment of our clubs standing. A highly respected professional asked me why the Swimming Club is involved in sabotaging the attempts to stabilise the economy carrying on a hate campaign against the PM including surrounding his private residence when the IMF Delegation was here as well as funding the protestors outside Temple Trees. This had been talked of at a diplomatic function. I immediately denied this but made inquiries and found that our President Kishan Karunaratne has been engaging in all these acts and that the youth in the protests opposite Temple Trees are under the impression that our club is backing them to the extent of discussing whether they could request using our toilet facilities. He has been providing them with meals while coming out of our premises and checking on them.
It was Kishan who first posted a message calling for people to surround the PMs private residence and was a key figure there along with a number of pastors of his Born Again Church.He was with Hirunika as well outside PMs house.His social media pages are filled with attacks on the PM in the most degrading manner calling him names. One post says that after Ranil there are gas queues and petrol queues. We have been told that gas will be available from the 6th. We also know that power cuts were reduced from 13 hours to 3 fertiliser is sorted out and if gas arrives it is the petrol that has to be done. All leaders say they need from 6 months to 5 years to sort out the problems caused by the Rajapakses and we have to wait for results. Karunaratne is an economist by profession and should know that this level of bankruptcy cannot be sorted in two months.
Every citizen is entitled to his opinion and political activism as is Kishan. But when they give leadership to any organisation they are bound to safeguard the organisation and ensure that they do not act in anyway that disgraces the institution. If Kishan wishes to dally with Hirunika or any other to topple governments he is free to do so but must not sully the good name of the club. One cannot wear two hats if one comprises the other and Kishan will have to choose.
We must remember that governments have nationalised clubs. Had this been done against him and Mahinda been in power our club would have been targeted for revenge. At a time when gangs are indulging in looting and arson we could easily be attacked by those opposed to Kishan’s actions. And there are no excuses for Kishan’s actions are those of a thug and he is inciting hatred and violence by publishing lies and half truths.
Our members are chosen after much scrutiny and entry is only for the best. As leaders in business and professions we must lead by example to stabilise the nation and not lead it to anarchy like uneducated youth.We pay high fees for membership to be exclusive and keep our status. Must then we be led by a thug and liar who has tarnished the club reputation by his actions.
I would therefore suggest that Kishan Karunaratne resigns and continue his vendtta from outside and a new President who can restore the dignity of the club and its membership be elected. If however he persists on damaging the club further we the membership would have to take appropriate action.
Public interest
US Independence Day parade in Chicago disrupted by gunfire. Multiple people shot
Multiple people shot at July 4 Independence Day parade in Chicago suburb of Highland Park
Chicago: Multiple people were shot at barely 10 minutes after the July 4 Independence Day parade began in the Highland Park area of Chicago. Highland Park Police said that there was an ‘active shooter’ in the area. “We are assisting Highland Park Police with a shooting in the area of the Independence Day parade route,” Lake County Sheriff, Illinois, US said.
City leaders said that police were responding to an incident in downtown Highland Park and added that the Fourth Fest has been canceled. “Please avoid downtown Highland Park. More information will be shared as it becomes available,” it said in a tweet.
While the officials did not declare the number of casualties, several social media accounts and local media reports cited eyewitnesses and said that multiple casualties were feared. In a tweet, Chicago Sun-Times said that five people were killed and 16 others were wounded when a gunman went on a firing spree at Highland Park.