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People will remember, ‘they didn’t have to, they had nothing to gain, but they did anyway.’

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By Krishantha Prasad Cooray

For as long as the human race has organized itself into sovereign nations, no country has had a story of limitless success. Nations and empires alike have risen and fallen, over thousands of years. Every language has phrases like “it takes a village” to remind us of the limitations of individual people and the need to work together. Similarly, no nation will ever thrive in isolation. The fate of every country is dependent on its relationships with other countries, with allies who share their values and who support each other in times of need.

History is littered with examples of countries that have been beset by natural disasters, militarily crippled, ridden with diseases, targeted by terrorism or economically ruined. What separates those who overcome these challenges from those that don’t is the willingness of other countries to come to their aid.

After World War II, for example, when the Axis powers were roundly defeated, it was the countries that vanquished them who stepped in to rebuild them. Indeed, without the aid of the Allies, neither Germany nor Japan would have grown into the economic powerhouses they are today.

The Marshal Plan, an American initiative, enabled West Germany and other West European nations to rise from the ashes of war and gain rapid economic development.

Japan, on the other hand, had far fewer friends. As European victims of German aggression feared the prospect of a united Germany, Asian victims of Japanese aggression feared a remilitarised Japan. Cold War politics too played a role, with the Soviet Union accusing the United States of planning to turn Japan into a military camp against itself and China. It was only at the San Francisco Peace Conference in 1951 that a peace treaty was finally signed, ending the occupation of Japan, restoring Japanese independence, and putting the country on a path to prosperity.

At that conference, it was then Sri Lankan Finance Minister Junius Richard Jayawardena, who spoke most persuasively about the case for making peace with Japan as an independent non-occupied nation. Jayawardena reminded the audience that prior to the barbarity of World War II, Japan had long been a staunch ally of other Asian nations. “It is because of our age-long connections with her, and because of the high regard the subject peoples of Asia have for Japan when she alone, among the Asian nations, was strong and free and we looked up to her as a guardian and friend,” he reminded the assembled world leaders.

Japan has never forgotten, and even today, memorial statues and plaques across Japan mark the country’s gratitude to J.R. Jayawardena. Sri Lanka, at the time, had nothing to gain from the vanquished Japanese. But we came to the aid of a nation in need and did the correct thing. A quarter century later, when J.R. Jayawardena became President of Sri Lanka, our relationship with Japan became one of the cornerstones of Sri Lanka’s subsequent prosperity.

Today, Sri Lanka finds itself crippled by an unprecedented crisis. Our people are in abject financial peril. Over a quarter of the country is starving and malnourished. The economy is paralyzed and many children are unable to reach schools due to fuel shortages. Electricity has become a luxury, and essential medicines have become scarce.

This is not the doing of the people but the result of mismanagement by corrupt, incompetent and short-sighted politicians holding the reins of power for their own gain. These politicians benefited. The people suffered. They suffer as I write and will suffer for a long time more to come.

It is tragic to see a country as resilient as Sri Lanka, with a proud history, being reduced to such a state. One day, I have no doubt that my country will rise again. But we will only do so with the support of friends, who will speak in solidarity and act in support.

Sri Lanka is but the first country to see its economy collapse at the mercy of corruption and rising global food and oil prices. It won’t be the last. Before long, other poorly managed countries will also begin to waver. Each stumbling nation can be rescued one at a time, but if several countries all collapse together, the chain reaction could paralyze the economies of not just the region, but the entire world. Sri Lanka, in particular, is ripe for rescue.

The people are clamouring for serious institutional and constitutional reform. If these reforms are coupled to both humanitarian aid and commercial investments, the payoff will be not just a monetary one, but one of deep gratitude.

At this time, if people, institutions and nations alike come to the aid of the Sri Lankan people, that aid is needed like never before. Doing so will help avert or minimize a humanitarian crisis like Sri Lanka has never known. Any country can make a contribution to help feed the starving, heal the sick, employ the unemployed, light up a classroom, and take other steps to help Sri Lanka to jumpstart its economy.

It was such words of support, and deeds of solidarity that helped Japan in 1951, and for which Japan has remained grateful so many decades later. Likewise, such a word, such a deed, will be remembered by Sri Lanka and Sri Lankans, those who are suffering right now, those who survive, and their children. It is a brand of gratitude that is special because it is altruistic. People will remember, ‘they didn’t have to, they had nothing to gain, but they did anyway.’ We will remember, and we will be grateful.

I was a part of the struggle during ’87-’89. We should get together to build this country – Dhammika

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Investment Promotion Minister Mr. Dhammika Perera emphasises that it is essential for all parties to leave their party differences and work together in order to recover the country from the current economic crisis.

Minister Dhammika Perera made this statement addressing a function held today (01) to extend the one-year visa period for owners, directors, and foreigners working in top management companies operating under the Board of Investment of Sri Lanka to five years.

The Minister said that until now, these foreigners who came to invest in Sri Lanka had to undergo medical examinations once a year to get these visas. He said that by removing the obstacles from today, an environment will be created where they can invest delightfully in Sri Lanka and also consider investments in Sri Lanka more positively.

He stressed the importance of this positive attitude in attracting investments to Sri Lanka and he said that two investors had submitted proposals to him regarding new projects and that he had informed them to come to discuss the same today.

Q. When you were getting prepared to come to Parliament, a group of protesters came and staged a protest in front of your house. And protest was held when you took over the ministry post. There were strong protests all over the country. Will a day come when these protesters will applaud you?

“I was one of those who waged the same struggle from 1987 to ’89. So for me this makes no difference. So as people who have been there, I think of these people like my children. If it happened in my past, I would have done the same thing.”

Q: During those protests it was said that this path would be a failure. Is it possible to change that opinion?

“At the age of 22-23 we too were in such a pressure. We used to look at photos in those days to see what is happening in the country, but today those youngsters can see that in videos. But they are still children. I have children of the same age. So because of that I know how they think. They think that is a system change. But the adults need to know what is system change. Even now, if those under the investment board had a one-year visa in the traditional way, this kind of program would not be done. I haven’t officially taken over yet. But when I do, I try to solve the problems of all the people and make everyone happy. Because if we don’t make someone happy, no one will make us happy.”

“Even when you are in the petrol queue, you can see that some people telling others not to send money here from foreign countries. You may have heard such telephone calls when you were in the queue. But that would make these queues even longer. This country should unite to bring foreign remittance. But if we hold our money in other countries and end the brand of our country without letting tourists come, we will have to face the disadvantage of it ourselves. We have to get out of this dire situation together.”

Railway workers on strike!

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The railway workers have started a strike with immediate effect. It is reported that the employees belonging to several sectors including locomotive drivers and train controllers are joining the strike.

Railway employees say that although the railway service is running as an essential service, they are not provided with fuel to report for duty. This strike has started in protest.

Due to the lack of fuel, a significant number of railway workers did not report to work today and because of this, it was decided to suspend more than 20 train rides.

Meanwhile, a heated situation arose at the Colombo Fort Railway Station today due to non-operation of trains. A large number of passengers arrived at the station but due to the lack of trains for them to travel, the people behaved in a provocative manner and protested to the railway authorities.

Japanese Embassy denies reports on unwillingness to support SL

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The Japanese Embassy in Sri Lanka has categorically denied media reports on the Japanese government’s unwillingness to support Sri Lanka amidst the economic crisis befallen the isand nation, a statement by the Prime Minister’s office emphasised.

Earlier a Daily Mirror headline, saying “Japan will not help Sri Lanka now” raised controversy leading to the spawning of a potential diplomatic rift between the two countries, following which KATSUKI Kotaro, the Deputy Head of the Japanese Mission in Sri Lanka responded saying that the claim is false.

The announcement by the PM’s office in this regard urges all media to correct the report with equal prominence, as this inadequate reporting could have a detrimental impact on the country’s economic recovery and the cordial relationship between the two states.

MIAP

Dhammika Perera takes steps to expand the one-day passport service

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Investment Promotion Minister Dhammika Perera has taken steps to expand the one-day service of obtaining passports to the regional offices, which was limited to the head office of the Immigration and Emigration Department in Colombo so far. He mentioned this at the press conference held in Colombo today.

Accordingly, from next Monday, the immigration department’s regional offices in Matara, Vavuniya, Kandy will have the opportunity to obtain passports under the one-day service.

In view of the current crisis, a large number of Sri Lankans are coming to get their passports in the hope of going abroad and due to this, large queues are seen near the Battaramulla head office as well as near the regional offices. Sometimes people have to wait in line for days to get your passports.

UK Parliament lauds Sri Lanka’s social protection systems

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Britain on Tuesday said that the existing social protection systems, including the Samurdhi programme, provide essential support to the most vulnerable communities in Sri Lanka and will be crucial at this difficult time.

In response to a question by Conservative MP that what recent assessment that the State for Foreign, Commonwealth and Development Affairs has made of the effectiveness of the Samurdhi programme in Sri Lanka, Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office) Vicky Ford said that “The Sri Lankan authorities have taken a number of measures to help support the public, including an economic relief package of Rs. 200bn ($1bn) announced in January 2022.”

“The UK recognises the economic challenges that Sri Lanka is facing. We continue to monitor the economic situation in Sri Lanka closely, including the impact economic issues are having on food security and livelihoods,” she said in a written answer to UK Parliament

She also stated“This package includes a Rs. 5000 ($25) monthly allowance for public sector employees, pensioners and disabled soldiers. Under the scheme, Rs. 1000 ($5) has been allocated to the beneficiaries of the government’s largest welfare programme ‘Samurdhi’, and a number of taxes and levies have been removed from essential foods and medicines. The Government of Sri Lanka agreed on May 2 to provide a special three-month cash allowance from May to July worth Rs. 13.36 billion to 3.34 million families affected by the current economic crisis, with funding from the World Bank of which the UK is a major donor.

“We regularly discuss economic policy with the Sri Lankan Government and encourage efforts to improve economic growth and protect vital economic interests such as key industries, commodities, employment and livelihoods,” she added.

In response to a question that the human development and social economic indicators of Sri Lanka in comparison to other South East Asian countries, Ms Ford “We continue to encourage a peaceful, democratic, and inclusive approach to resolving the current political and economic challenges.”

She said that the most recent available data (2020) for Sri Lanka indicates that it performs well against South Asia neighbours on high-level human development and social economic indicators, particularly infant mortality rates.

“However, the available data does not capture the severity of the current economic crisis and impact of recent economic shocks such as Covid-19, the Russia-Ukraine crisis, the floating of the Sri Lankan Rupee (LKR) and Sri Lanka’s debt default in May 2022. We have not made a recent assessment comparing Sri Lankan indicators to those in South East Asian countries,” she added

IMF bailout package preparation for Sri Lanka gains significant progress

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A new IMF-supported programme to extend the extended fund facility to Sri Lanka is being developed to restore macroeconomic stability and debt sustainability, while protecting the poor and vulnerable, safeguarding financial stability, and stepping up structural reforms to address corruption vulnerabilities and unlock the country’s growth potential.

An International Monetary Fund (IMF) mission team led by Messrs. Peter Breuer and Masahiro Nozaki visited Colombo from June 20 to 30, 2022 to discuss IMF support for Sri Lanka and the authorities’ comprehensive economic reform program. Ms. Anne-Marie Gulde-Wolf, Deputy Director of the IMF’s Asia and Pacific Department, participated in policy discussions.

The IMF team had constructive and productive discussions with the authorities on economic policies and reforms to be supported by an IMF Extended Fund Facility (EFF) arrangement.

Significant progress was made, and discussions will continue virtually towards reaching a staff-level agreement on the EFF arrangement in the near term.

Latest talks with Sri Lanka has made significant progress towards developing a policy package to stabilize the country the International Monetary Fund said, but the country also has to move forward on debt restructuring to finalize a bailout.

“The staff team and the authorities made significant progress on defining a macroeconomic and structural policy package,” an IMF statement said.

“Because public debt is assessed as unsustainable, Executive Board approval would require adequate financing assurances from Sri Lanka’s creditors that debt sustainability will be restored.”

Sri Lanka has appointed financial and legal advisors to negotiate with creditors.

At least one sovereign bond holder with over 250 million dollars has gone to court seeking full payment.

The team had constructive and productive discussions with the Sri Lankan authorities on economic policies and reforms to be supported by an IMF Extended Fund Facility (EFF) arrangement.

The staff team and the authorities made significant progress on defining a macroeconomic and structural policy package.

The discussions will continue virtually with a view to reaching a staff-level agreement on the EFF arrangement in the near term. Because public debt is assessed as unsustainable, Executive Board approval would require adequate financing assurances from Sri Lanka’s creditors that debt sustainability will be restored.

“In this context, discussions focused on designing a comprehensive economic program to correct the macroeconomic imbalances, restore public debt sustainability, and realize Sri Lanka’s growth potential. Discussions advanced substantially during the mission, including on the need to reduce the elevated fiscal deficit while ensuring adequate protection for the poor and vulnerable.

Given the low level of revenues, far-reaching tax reforms are urgently needed to achieve these objectives. Other challenges that need addressing include containing rising levels of inflation, addressing the severe balance of payments pressures, reducing corruption vulnerabilities and embarking on growth-enhancing reforms.

Japan says that they cannot give aid as the rulers cannot be trusted

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Sri Lanka is facing a huge crisis, but the Japanese ambassador to Sri Lanka has said that there is no possibility of considering giving aid at this time.

A group of members of the Tamil National Alliance met the Japanese Ambassador to Sri Lanka Misukoshi Hideki yesterday (30) and discussed the crisis situation facing the country.

The ambassador has said that if aid is given, it cannot be expected that it will be properly managed and that the aid will have to be delayed until trust is built in the rulers of this country.

However, the ambassador has further emphasized that assistance can be considered later.

Crisis-hit Sri Lanka lifts ban on Qatar Charity to secure fuel  from Doha

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In a desperate move to woo fuel supply from Doha Sri Lanka has lifted a ban on Qatar Charity, months after the government froze the charity’s accounts accusing it of funding Islamic terrorism together with a prominent lawyer. 

This assurance was given by Power and Energy Minister Kanchana Wijesekera who led a delegation to discuss possibilities of securing a fuel credit line to Sri Lanka when he met Qatar Charity officials in Doha on June 29.

“Met the Officials of the Qatar Charity yesterday. Conveyed the message that the Defense Ministry has informed the Attorney General its decision to lift the ban on the fund which was imposed in 2019,” Wijesekera tweeted.He also discussed the Charity’s work in Sri Lanka and globally.

 However no pocitive response has been received from Qatari authorities on Sri Lnka ‘S request for oil credilne and other assistance for the ialsnad nation to over comen the fuel crisisas the Sri Lanakn delegation failed to convince them . informed sources in Qatar said. 

Sri Lankan diplomats in the Middle East have noted that the governments there do not give as much priority to Sri Lankan issues as they did before the island nation’s political leaders’ action soured diplomatic relations. 

A former police minister and a close ally of President Gotabaya Rajapaksa Sarath Weerasekara told parliament on January 07 2021 that the ringleader of the Easter Sunday suicide bombers Zaharan Hashim had conducted lectures in an organisation maintained by Sri Lankan lawyer Hejaz Hisbullah. 

The organisation, named ‘Pearl of Unity’, and its local branc was funded by Qatar Charity which Weerasekara claimed was banned by the United Nations.

The Criminal Investigation Department (CID) subsequently froze the accounts of Qatar Charity in Sri Lanka.

The move, along with President Rajapaksa’s flat refusal to honour Qatar’s request through the Organisation of Islamic Countries (OIC) to stop cremating Sri Lanka’s minority Muslims who died of COVID-19, soured the Middle Eastern nation’s relations with Sri Lanka.

Wijesekera’s statement on lifting the ban comes at a time Sri Lanka is gradually coming to a standstill as it does not have any fuel imports until mid next month. Wijesekera on Sunday June 26 before leaving to Qatar told reporters that he was exploring possibilities of importing fuel from the oil-rich country.

During his visit, Wijesekera met Saad Sherida Al-Kaabi, the Qatar Minister of State for Energy Affairs and the President and CEO of Qatar Energy, and discussed the supply of petroleum products, liquid petroleum (LP) gas and liquefied natural gas (LNG) to Sri Lanka to overcome the energy crisis with the assistance of Qatar Energy and the Qatar Development Fund.

The minister also met Deputy Director General of the Qatar Fund for Development and said that he “discussed a possible credit line facility for petroleum and gas supply” and was “informed that funds has been allocated for medical supplies and will consider the request for a credit facility [and] support the IMF program”.

Despite many leaders of the ruling Sri Lanka Podujana Peremuna (SLPP) approaching Middle Eastern countries for fuel, President Rajapaksa administration has hardly got a positive response, government officials told EconomyNext.

The legal case involved with Qatar Charity saw the arrest of Hejaz Hisbullah Hisbullah by the CID on April 14, 2020, who was placed under a detention order by President Rajapaksa, under the Prevention of Terrorism Act (PTA) for allegedly “aiding and abetting” the Easter Sunday bombers and for engaging in activities deemed “detrimental to religious harmony among communities.”

He was detained for a long time without being charged. However, amid mounting international pressure, the government charged him before a court released him on bail early this year.

Qatar is one of the top foreign employment providers for Sri Lanka along with the United Arab Emirates.

Sri Lanka inflation hits 54.6% in June 2022

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Surface inflation rose to 54.6% in June 2022 based on the Colombo Consumer Price Index, according to the Department of Census and Statistics.

Inflation in the food category was recorded at 80.1% while in the transport category it was recorded at 128%.