Tuesday, June 3, 2025
Home Blog Page 2014

Government’s relief package boomerangs on fiscal stability:Moody’s claim

CN
-
0
Government’s relief package boomerangs on fiscal stability:Moody’s claim

Sri Lanka Government’s relief package worth of Rs. 229 billion is set to boomerang on the country’s fiscal stability, several economic experts and international rating agencies claimed.

Moody’s Investors Service has warned that the relief package announced by Finance Minister Basil Rajapaksa recently, could compound Sri Lanka’s fiscal challenge.

On 3 January,the Finance Minister announced a fiscal relief package worth Rs 229 billion ($1 billion, 1.6% of our 2022 GDP forecast) to support the economy and alleviate the impact of higher consumer prices on low-income households.

Moody’s Investors Service said that while the size of the package is moderate and will be fully funded via reallocations from the budget (6% of budget expenditure in 2022), it reduces the scope for fiscal and debt consolidation at a time when fiscal flexibility is already severely limited by the large share of interest payments in government revenue (60-70%).

“Funding the package with reallocations from the budget in part reflects this limited fiscal space, which constrains the government’s ability to use fiscal policy to mitigate the impact of economic shocks,” Moody’s said.

Furthermore, Moody’s noted that the risk of fiscal slippage has increased with the emergence of the omicron variant of the coronavirus.

Some countries have tightened activity and travel restrictions, and any reintroduction of measures domestically or a delay in the recovery of Sri Lanka’s tourism sector would intensify fiscal and external pressures, Moody’s added.

Key features of the relief package include cash handouts of Rs 1,000 to citizens receiving income support, agricultural subsidies, the removal of certain taxes on food and medicine and an increase in public-sector salaries (Rs 5,000 a month from January).

Such measures would support domestic demand and the economic recovery as surging prices – particularly for food – stemming from global supply chain-related disruptions and some import restrictions over 2020-21 reduce the purchasing power of households.

Consumer price inflation rose to 8.3% year-over-year in October 2021 and accelerated to more than 11% in November , 12.1% in December 2021   and 14.2% in janury 2022 , with food prices surging day by day , Census and Statistics Department data showed.   

“The rating agency  expects inflation-adjusted real GDP growth to pick up to around 5% in 2022 from around 4-5% in 2021, in part because of a lower base and because domestic economic activity has largely normalised, with international borders open to vaccinated tourists since October 2021.

 However, risks remain as the new omicron variant of the coronavirus could delay such a recovery, and several countries have reversed their easing of travel restrictions. 

Should such risks materialise, the recovery in Government revenue would likely be delayed beyond our assumptions, with fiscal and debt metrics remaining very weak for longer,” Moody’s said.

Moody’s is forecasting that the fiscal deficit will narrow only slightly to around 9-10% of GDP in 2022 from around 11% in 2021, mainly reflecting their expectation for lower revenue growth than the budget envisages.

“Wide deficits will keep the government’s debt burden at higher levels for some time; we estimate that the debt burden will rise to around 108% of GDP by the end of 2022 from around 101% at the end of 2020 and 87% at the end of 2019, before stabilising at the elevated 2022 level thereafter, mainly reflecting the recovery in nominal GDP growth. 

Such levels are significantly above the Caa median and much higher than the government’s medium-term target of around 75% in 2025,” Moody’s said.

In addition, a delay in the recovery of tourism receipts would weigh on Sri Lanka’s precarious external liquidity position.

.

CPC compels to introduce fuel price hike or fuel pump coupons 

CN
-
0
CPC compels to introduce fuel price hike or fuel pump coupons 

Government is now forced to introduce a quota system for essential imports and a coupon scheme for consumers in buying food and fuel, reliable high official sources divulged.

Leading policy makers of the government are now considering the option of implementing a quota-based importation system to save US$ 3 billion expected to flow into the country soon, a top official said. 

 Since the beginning of the year both the Central Bank and the Government have been actively pursuing possible avenues to replenish official reserves, with an emphasis on encouraging non-debt flows, so that the existing foreign debt could be managed in a sustainable manner.

As an immediate action to conserve fuel which is being imported on spot purchasing system amidst dollar crisis and rising international petroleum product prices, the government is contemplating a fuel price hike or the issuance of fuel on coupon system.

This emergency action has become inevitable owing to the massive increase in debt and interest to be paid by the Ceylon Petroleum Corporation (CPC) amounting to Rs. 515 billion up to now, CPC sources said.

This amount is inclusive of debt installment and interest payment for the Bank of Ceylon and Peoples Bank in spite of the monthly loss of the CPC amounting to Rs.6.7 billion and its monthly income of Rs.61 billion.

Under this set up the Corporation is incurring loss of Rs33 from the selling of liter of Diesel RS 5 per liter of Petrol due to the oil price hike in international market.

Despite the huge increase in fuel prices in the world market, the government has managed to hold the current fuel prices without revising them for the last six  months.

 Unfortunately, the government can no longer keep prices stable, the energy ministry said, adding that  there has never been a time in history when prices in the world market have not been revised for such a long time.

 A loss of Rs. 331 billion will be incurred by the Ceylon Petroleum Corporation (CPC) by the end of 2021 due to the continuous purchase of fuel at higher prices with low sales at lower prices, the ministry revealed.

 According to insight investigation, the CPC has been operationally profitable in the past. However, the recorded accumulated losses can be entirely attributed to poor treasury and financial management, which is reflected in interest costs, and large exchange rate losses.

Data from the Ministry of Finance show that the CPC made gross profits every year since 2013. That is, the revenue exceeded the cost of sales including taxes.  

Over the last 10 years, the CPC recorded a gross profit of Rs. 281 billion. Therefore, the CPC’s losses cannot be attributed to selling fuel at a price lower than its cost plus tax, a financial analyst said.   

Even when including operational costs related to sales and distribution, administration, and depreciation, the CPC still made profits in most years. 

The accumulated operational profit amounted to Rs. 29 billion over the last 10 years (2011–2020). Therefore, the substantial accumulated losses cannot be explained by the addition of operational overheads, nor by capital depreciation costs, he claimed. 

Foreign Ministry refutes claims made by Ambika Satkunanathan to the European Parliament’s Subcommittee on Human Rights

CN
-
0
Foreign Ministry refutes claims made by Ambika Satkunanathan to the European Parliament’s Subcommittee on Human Rights

The Foreign Ministry notes with concern the numerous misleading statements contained in the testimony of the Chairperson of the Neelan Tiruchelvam TrustAmbika Satkunanathan, during an exchange of views on the situation of human and labour rights in Sri Lanka at the European Parliament’s Subcommittee on Human Rights on 27 January, 2022. 

Ms. Satkunanathan’s testimony completely ignores the progress made by the government of Sri Lanka on many fronts and creates doubts about the government’s intents and sincerity, particularly at a time when it is engaged in a long-standing cooperation with the UN human rights mechanisms and the UN Human Rights Council and is delivering on its commitment to address accountability and reconciliation through domestic processes and institutions.

The Ministry is disappointed that among the recommendations made by Ms. Satkunanathan is that the EU uses its leverage on GSP plus facility to exert pressure on the government on human rights. If Sri Lanka loses the EU GSP plus facility, particularly at a time when livelihoods of millions of Sri Lankans belonging to all communities are already affected by the ongoing COVID-19 pandemic, the resulting losses would exacerbate poverty and income inequality. Some of the worst affected sectors will be fisheries and agriculture which are among the key industries in the North and the Eastern Provinces of Sri Lanka. 

The Ministry also notes that the unfounded allegations about discrimination of ethnic communities in her testimony are reminiscent of LTTE propaganda that once stoked hatred among communities. In a multi-ethnic and multi-religious country such as Sri Lanka, such allegations need to be refuted in the interest ofsocial harmony and to prevent the spread of dangerous fallacies about Sri Lanka in the international community. 

The Ministry refutes Ms. Satkunanathan’s claims on ‘a culture of impunity’. The Ministry wishes to point out that the government is engaged in a long-standing cooperation with the UN human rights mechanisms as well as with the UN Human Rights Council. Sri Lanka is delivering on its commitment to address accountability and reconciliation through domestic processes and institutions. The government has been actively engaging the international community including the UNHRC’s Universal Periodic Review and Special Procedures to address the various concerns that have been raised. This includes the allegations of systematic torture. The Government has made it clear that additional reforms will be undertaken to further strengthen rule of law, access to justice, and accountability. It remains open to a constructive discussion on suggestions and further steps to address shortcomings.

The Ministry notes that Ms. Satkunanathan makes references to ‘Sinhala Buddhist nationalism’ and ‘militarisation’ as driving the actions of the Government. She makes vague claims of racial profiling in the absence of any concrete evidence of discrimination against minorities. In reply, the Ministry wishes to point out that Sri Lanka is a secular country and all citizens, irrespective of their religion or ethnicity share the same fundamental rights under the Constitution. Furthermore, Sri Lanka ensures access to public services such as free education and free health facilities without any discrimination on the basis of ethnicity or religion. In fact, even during the military conflict when large areas of the Northern and the Eastern Provinces were under the control of the LTTE, the government continued with the provision of such public services to the areas so that the civilians, who were mainly ethnic Tamils and Muslims, would not be affected.

Ms. Satkunanathan points to the Presidential Task Force on Archaeology which she accuses of being a tool for land grabbing and changing the demographics of minority-heavy areas and the Presidential Task Force on “One-Country One Law” which she accuses of stoking ethnic hatred and violence. After the war, as displaced persons returned to the Northern and the Eastern Provinces, there has been an increase in unauthorized encroachment into forest areas inevitably leading to destruction of archaeological sites. So, there is an urgent need to take concrete measures in order to protect these sites. There is no truth in the claims that the Presidential Task Force on Archaeology is a pretext for land grabbing and introducing the Sinhalese to these areas. It may be noted that there is representation of all ethnic communities in this Task Force. With respect to the Presidential Task Force on “One Country One Law,” it should be noted that it is expected to play an advisory role only. The Task Force’s recommendations will be first studied by the Justice Ministry, then the Cabinet of Ministers and finally the Parliament following the democratic traditions.

With regard to her allegations that the Northern and Eastern Provinces are ‘occupied’ by the military, it should be pointed out that the the majority (more than 92%) of the private lands occupied by the military at the end of the conflict in year 2009 have already been released to legitimate land owned civilians. A mechanism is already in place to expedite the process of releasing remaining private lands. 

It is particularly disappointing to see Ms. Satkunanathan’s allegations that ‘civic space’ is shrinking and that informal and extra-legal processes are used to curtail the activities of civil society organizations. The Ministry asserts that government views NGOs as partners and not as adversaries. The government acknowledges the constructive contributions made by civil Society organisations in the work of the Office for National Unity and Reconciliation (ONUR) and Sustainable Development Council of Sri Lanka. It has also introduced certain policy changes to facilitate the work of NGOs such as bringing the NGO Secretariat under the Foreign Ministry. It must be reiterated that apart from operating routine security networks in the interest of national security, particularly after the devastating Easter Sunday terrorist attacks, the Security Forces and intelligence agencies are not engaged in monitoring or targeting any specific group of people in the country. 

The Ministry refutes Ms. Satkunanathan’s claims of extra-judicial killings and arrests under the pretext of a “war and drugs.” With regard to the PTA, it should be noted that the government is in the process of amending the Act, which is now at the final stage and the international community is being briefed on that process.    

Ms. Satkunanathan also alleges that the government is exploiting its friendship with China to “undermine the efforts of states that call for accountability for human rights violations” in Sri Lanka. On the contrary, mindful of strategic competition that is increasing in the Indo-Pacific region, our main foreign policy directive is to maintain neutrality, in line with the non-aligned foreign policy we have adopted since Independence. The Ministry wishes to point out that apart from China, Sri Lanka has entered into partnerships with several countries such as India and Japan to fill gaps in national infrastructure development. Such partnerships have no bearing on Sri Lanka’s commitment to address accountability and reconciliation through domestic processes and institutions.

North Korea’s Kim calls Winter Olympics ‘great victory’ for China

CN
-
0
North Korea’s Kim calls Winter Olympics ‘great victory’ for China

North Korean leader Kim Jong Un has sent a message to Chinese President Xi Jinping congratulating him on the Beijing Winter Olympic Games as a “great victory” and saying he wants to improve relations between their countries, according to state news agency KCNA.

“The successful opening of the Beijing Winter Olympics despite the worldwide health crisis and unprecedented severe circumstances is another great victory won by socialist China,” Kim said in the letter, KCNA reported on Friday.

Kim said that he would “steadily develop the relations between the two parties and the two countries to a new high stage”.

He said the ties between the two countries “have been cemented into invincible strategic relations that can never be broken by anything in the struggle for defending and advancing the common cause”.

The Winter Olympics are due to open in Beijing later on Friday.

The United Nations Security Council will meet the same day to discuss a record month of North Korean missile tests, including the launch of an intermediate-range ballistic missile on Sunday, the first test of that type since 2017.

China and Russia last month delayed a US bid to impose UN sanctions on five North Koreans, diplomats said.

In a previous letter from sports authorities in January, North Korea said it would not be attending the Games in neighbouring China, blaming COVID-19 risks and “hostile forces” from other countries, although it did not mention specific nations.

North Korean athletes are not eligible to compete under their national flag after the country was suspended from the International Olympic Committee (IOC) until the end of 2022 for failing to send a team to the Tokyo Summer Olympics last year, citing COVID-19 concerns.

The earlier letter also criticised unspecified moves by the United States, which in December announced that its government officials would boycott the 2022 Winter Olympics because of China’s human rights record while leaving US athletes free to travel to Beijing to compete.

China has been North Korea’s only major ally since the two signed a treaty in 1961, and international sanctions imposed over Pyongyang’s nuclear weapons and ballistic missile programmes have made it more dependent than ever on Beijing for trade and other support.

After nearly two years of some of the world’s strictest border closures in the pandemic, North Korea resumed limited trade by train with China last month, but maintains near-total lockdowns on other border travel.SOURCE: AL JAZEERA AND NEWS AGENCIES

Myanmar’s Aung San Suu Kyi faces new charge amid fresh violence

CN
-
0
Myanmar’s Aung San Suu Kyi faces new charge amid fresh violence

Myanmar’s military government has filed an eleventh corruption charge against removed leader Aung San Suu Kyi, the latest in a variety of indictments against the Nobel laureate who faces more than 150 years in prison.

The new case was announced on Thursday, as the military reportedly launched fresh attacks on the civilian population in the northwestern Sagaing region, with troops allegedly burning up to 400 houses, forcing thousands of residents to flee.

Police filed a further corruption charge against Aung San Suu Kyi for allegedly receiving $550,000 as a donation for a charity foundation named after her mother, the military’s information team said in a statement.

The statement gave no details on when court proceedings would begin.

Aung San Suu Kyi, 76, has been detained since the February 1 coup last year that triggered mass protests and a bloody crackdown on dissent with more than 1,500 civilians killed, according to a local monitoring group.

She has already been sentenced to six years in jail for incitement against the military, breaching COVID-19 rules and breaking a telecommunications law – although she will remain under house arrest while she fights other charges.

Each corruption charge carries a possible 15-year jail term.

Aung San Suu Kyi is already on trial for breaching the official secrets act – where she is accused alongside detained Australian academic Sean Turnell – as well as several other corruption-related charges.

This week the military government announced she will face a further trial beginning mid-February on charges of influencing the country’s election commission during 2020 polls that saw her party defeat a military-aligned rival.

AL JAZEERA

Ceylon Cinnamon gets geographical certification from the European Union  

CN
-
0
Ceylon Cinnamon gets geographical certification from the European Union  

Marking a moment of historical significance, Sri Lanka received its first ever Geographical Indication (GI) certification when the European Union (EU) Commission on 02 February,2022 granted GI status to Ceylon Cinnamon. 

The outcome was a result of a painstaking, decade-long, arduous endeavour led by the Sri Lanka Export Development Board (EDB) under the Ministry of Trade with the support of numerous public and private stakeholders.

During this monumental task, the much needed technical assistance was provided by UNIDO, Delegation of the European Union to Sri Lanka and the World Trade Organisation (WTO) while some financial assistance was granted by the Common Fund for Commodities, based in the Netherlands. 

In this breakthrough mission, the EDB was ably supported by Foreign Ministry, Department of Commerce, National Intellectual Property office, the Department of Export Agriculture, Spice Council and the Spices and Allied Products Producers’, Traders’ Association (SAPPTA)

GI registration has the purpose to differentiate Ceylon Cinnamon in the EU market from its substitutes of lower quality. GI will act as a source of competitive advantage which will help to increase market differentiation, product turnover and allow for a premium price from the consumer. 

An enhanced competitive position of Ceylon Cinnamon in the EU market will have a positive impact in terms of an increase in exports for Sri Lanka, higher income and employment generation across the cinnamon value chain, benefiting about 30,000 stakeholders involved in cinnamon production and processing.

As part of obtaining the GI status, the Ceylon Cinnamon Geographical Indication Association (CCGIA) was established representing all the stakeholders in the cinnamon industry in the country. 

The responsibility of the CCGIA is to implement an internal control mechanism to monitor their members meeting the specifications stated in the GI specification document. 

The participants within the cinnamon supply chain need to be registered/obtain the membership of the CCGIA to export Ceylon Cinnamon to the EU region under the “Ceylon Cinnamon” name.

The EDB wishes to place on record the wholehearted assistance and encouragement given by Trade Minister  Bandula Gunawardena in the course of this challenging task. 

Minister Gunawardena in October 2020, submitted a proposal to the Cabinet to advise the Legal Draftsman to draft a bill to amend the Intellectual Properties Act No. 36 of 2003, with the provisions to establish a comprehensive and definitive legal framework for the registration of geographical indications in Sri Lanka, which paved the way to secure GI status for Ceylon Cinnamon.

Objection was raised by the competing countries to block the granting of GI status by the EU commission to Sri Lanka for Ceylon Cinnamon, however, the EDB, with the support and encouragement of the aforementioned stakeholders, persevered against all the odds to realise this landmark accomplishment.

“We have passed a long journey in obtaining GI for Ceylon Cinnamon. Since 2009, followed by branding of Pure Ceylon Cinnamon, the EDB started the journey to secure registration of GI for Ceylon Cinnamon in the EU. 

Obtaining GI representing the whole country is a significant achievement and GI is beneficial to all stakeholders representing the cinnamon supply chain. Further, special focus can be given on rural development through Ceylon Cinnamon GI certification”, EDB Chairman Suresh D de Mel expressed his views on this important milestone.

Maldives and Sri Lanka to enhance bilateral  relationship

CN
-
0
Maldives and Sri Lanka to enhance bilateral  relationship

The Maldives and Sri Lanka have discussed the need to enhance the relationship between both countries.

The High Commissioner–designate of Sri Lanka to Maldives, A.M.J. Sadiq presented his Letter of Credence and the Letter of Recall of his predecessor to the President of the Republic of Maldives, Ibrahim Mohamed Solih at the President’s Office in Male.

After conveying the warm greetings of President Gotabaya Rajapaksa to President Solih, the Sri Lankan envoy expressed his keen desire to strengthen and diversify the existing close and cordial bilateral relations into a vibrant and multifaceted partnership for the mutual benefit of the people of Sri Lanka and Maldives, during his tenure.

The High Commissioner highlighted the importance of enhancing economic cooperation, in particular, covering the fields of education, health, as well as bilateral trade and investment.

President Solih warmly reciprocated these sentiments and wished the High Commissioner a successful tenure in Maldives.

President Solih went on to extend greetings to the government and the people of Sri Lanka on the occasion of the 74th Independence Day, which falls on 4 February. 

He also recalled fond memories of his successful visit to Sri Lanka in November 2021, where he held discussions with President Gotabaya Rajapaksa on further enhancing relations between the two countries.

Following the presentation of credentials, High Commissioner Sadiq paid a courtesy call on the Minister of Foreign Affairs of Maldives, Abdulla Shahid.  

The Foreign Minister congratulated the new High Commissioner and wished him a successful tenure in Maldives.  He thanked the government of Sri Lanka for its support for his election as the President of the 76th session of the United Nations General Assembly. 

Echoing the sentiments of President Solih, the Foreign Minister stated that Sri Lanka and Maldives, as members of a family, can work closely together to advance the existing warm and friendly relations to newer heights.

Later on the same day, High Commissioner Sadiq called on the Foreign Secretary of Maldives, Abdul Ghafoor Mohamed and discussed ways and means to enhance bilateral relations, focused on economic cooperation, particularly in areas of public and private partnership, involving the governments and private companies of Sri Lanka and Maldives.  

They also agreed to expedite the finalisation of the Agreements/MoUs on the Avoidance of Double Taxation, Promotion and Reciprocal Protection of Investments and Cooperation and Mutual Assistance on Customs Matters between Sri Lanka and Maldives.

The High Commissioner Sadiq is the most senior officer in the Sri Lanka Foreign Service and possesses over 35 years of public and private sector experience at executive level, initially as a bank executive in the private sector for 2 ½ years, followed by over 33 years in the Sri Lanka Foreign Service with multi-disciplinary experience, gained across Europe, South America, Middle East and South Asia.

High Commissioner Sadiq had his primary and secondary education at Royal College, Colombo and read for a Bachelor of Science degree at the University of Colombo.

He also holds a Master in Public Management (MPM)degree from Harvard University and the National University of Singapore, having been awarded the Lee KuanYew Fellowship to pursue his studies at these two prestigious universities.

He also possesses professional accountancy and banking qualifications

Sri Lanka embarks on an ambitious drive to promote rural industries 

CN
-
0
Sri Lanka embarks on an ambitious drive to promote rural industries 

Sri Lanka has embarked on an ambitious promotion drive of several traditional and rural industry projects that were launched last year, finance ministry sources said.  

The ministry has allocated Rs 1 billion in the 2022 budget proposals as well as another Rs.150 million r from budget estimates for the state ministry handling traditional and rural industries.

The funds will be used for the improvement of traditional domestic industries such as rattan, clay, brass, lacquer, masks, coconut shells, gold, stone carvings, jute and Dumbara matting patterns, etc.

A special programme will be implemented  to promote the cultivation of raw materials required for rural industries, and  to establish a National Raw Materials Bank, and  to  assist  in going from one entrepreneur to one village project ’.

A project to establish a fashion and process modification centre related to timber products, a local and overseas market promotion programme for rural industries has also been approved  by the cabinet of ministers. 

Rural and traditional industry villages consolidated development programmes, and a national lacquer industries development programme will also be launched to improve traditional domestic industries, the finance ministry sources said.

 The Government has kicked off a Rs. 100 billion revival at grassroots level on Thursday 03 in keeping with the 2022 Budget promise. 

Finance Minister Basil Rajapaksa revealed that the initiative hopefully will unleash a revitalisation of livelihood, socio-economic infrastructure, environment and social development at village level sans politics. 

The grandiose initiative involves 100,000 people championing projects of Rs. 1 million each at village level bringing a 2022 Budget-allocated Rs. 100 billion into fruition. 

“This is a bipartisan initiative as it covers all districts and electorates even if the ruling party hadn’t won a seat,” Basil said. 

He cited Colombo and Jaffna where non-ruling Sri Lanka Podujana Peramuna (SLPP) candidates didn’t secure a clear victory. 

“For example, in Colombo, of the 49 elected representatives the majority (47) are from outside the Government. In Kolonnawa all five representatives are non-SLPP but the Government will support the projects,” Basil Rajaaksa added. 

The Budget 2022 allocated Rs. 85 billion for the village-level development as envisioned by President Gotabaya Rajapaksa’s “Gama Pilisandara” project as well as Rs. 15 billion allocated for the “shop-house” proposal. 

“What is unique is that these projects are championed by villages and implemented in collaboration with public servants. 

The Government is only supporting it via funding. It is important that these projects would eventually serve towards realising macro national development goals,” he added.

It is not a mistake to seek the assistance of the IMF in an emergency – Tissa (VIDEO)

CN
-
0
It is not a mistake to seek the assistance of the IMF in an emergency – Tissa (VIDEO)

Samagi Jana Balawegaya MP Tissa Attanayake says that it is not a mistake to seek the assistance of the International Monetary Fund in an emergency and that it is not a private organization.

He says that it seems that the government is now on its knees before the International Monetary Fund due to borrowing money from moneylenders without seeking the assistance of such an international organization.

He says with the help of an institution such as the International Monetary Fund, the country has to maintain financial discipline and without it, a country cannot move forward.

District Court orders Kimarli Fernando to appear in person over Contempt of Court

CN
-
0
District Court orders Kimarli Fernando to appear in person over Contempt of Court

The Colombo District Court ordered Kimarli Fernando, chairperson of the Sri Lanka Tourism Development Authority (SLTDA), to appear in court in person on pursuant to an inter-parte inquiry held on the 02nd of February 2021.

It is a well-known fact that Kimarli Fernando has been misusing her privilege and political power over assets and properties of the Sri Lanka Tourism Development Authority (SLTDA) to advantage her family members and relatives for a long time.

Violation or disregard of a court order constitutes the Contempt of Court. In this most recent case, SLTDA higher officers including its chairperson acted in defiance of an interim injunction issued by the District Court over a land matter filed by Lanka Realty Leisure (Pvt) Ltd (LRL). Lanka News Web has published a series of articles in this regard.

During the inter-party inquiry into the violation of the interim injunction, the District Court dismissed all objections raised by SLTDA including Chairperson Kimarli Fernando, Director General Dhammika Wijesinghe and Additional Director General Anoma Nandani.

In fact, Kimarli Fernando erred in this way because of her own arrogance. She got herself in trouble as she tried to fiddle Lanka Realty Leisure (Pvt) Ltd (LRL), arbitrarily taking over land in the Yala tourism zone, which had been leased to the company for ninety-nine years, and trying to hand it over to her close relatives. While the company is still in possession of the land, she went to the extent of preparing a ‘Deed of Cancellation’ and continued her ploy.

On February 18, 2021, LRL again challenged Kimarli’s arbitrary conduct and obtained an injunction order against SLTDA from the Colombo District Court against the unlawful transfer of their land in the Yala Tourist Zone to a third party. The District Court granted them an interim injunction confirming that it was a justifiable request and what Kimali did then was to continue on her work in defiance of the District Court, without complying with the interim injunction. Consequently, Kimarli’s contempt of court is now arguing before the law, and in due process the Colombo District Court had issued notices to SLTDA Chairperson Kimarli and two other directors, this time, to appear in-person.

Kimarli did not appear in court at any of these proceedings related to LRL matter. One can say that this is the general procedure of government bodies to send someone before courts to represent themselves. However the government agencies should seek formal advice from the Attorney General’s Department on obtaining legal assistance in such court proceedings including but not limited to concluding from whom they should seek legal representation. The Attorney General’s Department has made it clear that SLTDA legal assistance should be sought from the lawyers affiliated to SLTDA. But Kimarli ignored that advice as usual, and paid hundreds of thousands of rupees of public money and enlist the help of President’s Counsel Romesh de Silva – a private lawyer. LNW have pointed this out in detail in a previous article.

Kimarli Fernando did not appear before the court this time as well, for contempt of court case, repeating her usual conduct. This time she had used the legal assistance of a team including again President’s Counsel Romesh de Silva and Harith de Mel for the SLTDA. The petitioner – LRL – was represented by a team of lawyers including Nishan Premathiratne, Ravi Karunaratne, and Vikum Jayasinghe on the advice of Attorney-at-Law Julian Pratheep.

After considering all the facts, the District Court on February 2, 2022, ordered Kimarli and the group to appear before the court in person. Colombo District Judge Aruna Aluthge ordered the re-issuance of notices to all the accused over contempt of court. He emphasized that no one is above the law, regardless of their official status or social status.

What is surprising here is that Kimali Fernando, as a lawyer who has been sworn in before the Supreme Court, so at least in this time she shall learn the meaning of the term ‘Rule of Law’ from the Colombo District Court.

Accordingly, at the next court date ie; March 16th, Kimarli will not be able to escape this scandal by sending lawyers representing herself or the SLTDA. She has to put aside her arrogance and so-called privilege and appear in person before the Colombo District Court.

As we have repeatedly said, SLTDA, the pioneer and the apex bosy in promoting the tourism industry in Sri Lanka, has never been so humiliated in past history in Sri Lanka. This is all because of nobody but Kimarli. The team, including Kimarli, now only has a limited duration to enjoy her privileges until March 16th. If proved guilty for the charge, she will serve up to two years in prison.

Kimarli will have to answer to the Lanka Realty Leisure (Pvt) Ltd and the country one day or another for this whole saga. This ugly game must end now.

LRI-Order-02-02-2022-compressedDownload
1...2,0132,0142,015...2,110Page 2,014 of 2,110

ART

GOSSIP

SPORTS

BUSINESS

Stay in touch

To be updated with all the latest news, offers and special announcements.

Contact us