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Ali Sabry says a truth-seeking mechanism will be established to investigate allegations of human rights violations

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Minister of Foreign Affairs Ali Sabry says that a truth-seeking mechanism will be established to investigate allegations of human rights violations. The minister mentioned this while addressing an internet forum yesterday (05).

Sabri expresses confidence that this mechanism will be operational before March next year.

Last year, former President Gotabhaya Rajapaksa appointed a commission of inquiry headed by Supreme Court Justice A.H.M.D. Nawaz to evaluate the findings of the previous commissions and committees and the way forward regarding human rights and truth-seeking activities. The commission’s investigations have now reached the final stage and the final report is scheduled to be released this month.

The commission’s first report was handed over to then-President Gotabaya Rajapaksa in July 2021.

The Minister of Foreign Affairs says that the commission’s final report will propose to investigate, report, or take necessary action based on previous commissions or committees appointed to investigate human rights violations, serious violations of international humanitarian law, and other such offenses.

The minister also mentions that the truth-seeking mechanism will be established based on that report.

President Ranil’s Special Statement (LIVE)

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President Ranil Wickramasinghe’s special statement in Parliament today (06)…

SRI LANKA ORIGINAL NARRATIVE SUMMARY: 06/10

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  1. Opposition Leader Sajith Premadasa says former President Maithripala Sirisena asked him to take up the post of PM on 71 occasions: 10 times before 26 October 2018, and 61 times the following year.
  2. SJB MP Kabir Hashim elected unanimously as Chairman of Committee on Public Accounts: SLPP MP S B Dissanayake proposes and SJB MP Niroshan Perera seconds.
  3. The government decides not to proceed with the recommendations of the final report of the “One Country, One Law” Presidential Task Force: its Chairman Ven. Galagodaaththe Gnanasara Thera claims the report does not contain recommendations that target any race or religion, and it’s the Government’s responsibility to implement it.
  4. President Ranil Wickremesinghe declared the supply of electricity and the supply or distribution of petroleum products and fuel as essential public services.
  5. Sports Minister Roshan Ranasinghe appoints new National Sports Selection Committee: says the responsibility has been entrusted to persons who love sports and have practical knowledge.
  6. Speculation rife that more Cabinet and State Ministers are to be appointed: Cabinet Spokesman Minister Bandula Gunawardena says present Ministers are overwhelmed with work: and explains that it is therefore good to have a separate Minister for each portfolio.
  7. A core group led by “friendly” countries, USA, UK, Canada & Germany together with 30 other countries co-sponsor resolution against Sri Lanka at UNHCR: Foreign Minister Ali Sabry says Sri Lanka will oppose it: resolution likely to be carried.
  8. Telecom companies revise charges with the introduction of the Social Security Levy: all pre-paid and post-paid packages, including the Pay TV services increased, with the addition of the new tax of 2.5%.
  9. Treasury Bill rates continue at their astronomical levels at auction on 5th October: Rs.76.4 bn for 91 days @ 32.3%: Rs.4.2 bn for 182 days @ 30.6%: Rs.4.3 bn for 364 days @ 29.7%.
  10. Wanindu Hasaranga moves to 3rd place in the ICC Men’s Player T20 bowling rankings: 4th in the all-rounder list.

A special fuel pass introduced for foreign tourists

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A special fuel pass has been introduced for foreign tourists and those involved in the tourism industry.

This special fuel permit has been in effect since yesterday (05) and it is possible to get fuel from more than 300 fuel stations across the island without the quota system.

Minister of Tourism and Lands Harin Fernando stated that this special program was prepared together with the Ministry of Energy so that the foreign tourists coming to Sri Lanka can carry out their tourism activities more easily without hindrance.

President to make a special statement today

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President Ranil Wickramasinghe is scheduled to make a special statement today (06).

Accordingly, he will present this special statement in Parliament.

It is said that the President will present facts regarding the current economic situation of the country and international support.

Several powerful government institutions placed under Minister Tiran

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An extraordinary gazette notice has been issued placing the institutions of the Department of Registration of Persons, Department of Immigration and Emigration and the National Board of Control of Dangerous Drugs under the Ministry of Public Security. Tiran Alas is the Minister of Public Security.

President Ranil Wickramasinghe has issued this extraordinary gazette announcement yesterday (05).

SLTDA revises tourism projections thrice amidst lowest monthly arrivals

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The Sri Lanka Tourism Development Authority (SLTDA) has revised down its tourism arrival projections for 2022 for the third time this year, due to the current crisis in the country which has negatively impacted tourist arrivals to the country.

However, the authorities have now set two targets based on two scenarios. SLTDA official stated that considering the current crisis situation in the country, SLTDA had decided to revise their tourist arrival projections for 2022.

“It has considered two scenarios and developed our projections accordingly. The first scenario is if the current situation prevails, whereupon the anticipated tourist arrival for the year 2022 is 650,000.

The second scenario is if the situation improves, whereupon the projected tourist arrivals for the year 2022 will be around 850,000,” SLTDA official noted.

He further added that if Sri Lanka had a good winter season, tourist arrivals in 2022 may reach one million.

However, he admitted that such a development would rely heavily upon the improvement of the current unfavorable conditions in the country.

He also noted that the revenue generated from tourism had contracted due to the recent developments in the country because the duration of tourist stays had decreased.

This is reflected by the fact that the average duration of a tourist stay has contracted from 10.23 days during the period of January to March this year, to around 9.8 days at present.

Nevertheless, He anticipated that the revenue may have decreased simultaneously due to the duration of the stay being shortened amidst the crisis.

Sri Lanka witnessed its lowest monthly tourist arrivals in September, with the number of international visitors entering recorded at 29,802.The arrivals for the month are even lower than that of May, which saw 30,207 tourists entering the country.

In May, the political and economic crisis in the country escalated, severely crippling the tourism sector that was well on its way towards revival from the impact of the COVID-19 pandemic.

The low rate of tourist arrivals in September brings the total number of visitors that entered the country from January 01 to September 30 to 526,232. The weekly tourist arrival averaged 7,450, whereas the daily arrivals averaged 993 for the month of September.

India, the UK and Australia emerged as the top three source markets in September, accounting for 6,493, 2,872 and 2,309 arrivals, respectively. For the January-September period, India, the UK and Russian Federation were the top three tourist traffic generators for the country, bringing in 86,625, 68,527 and 51,300 international visitors, respectively.

Although the recent months have seen lower tourist arrivals to the country, the industry stakeholders have expressed confidence in the numbers picking up towards the latter part of the year, leading to the winter season.

Sri Lanka is still to fall under the ‘green’ category of the travel traffic light system, which indicates travelers to exercise ‘normal’ precautions. Sri Lanka aims to attract a total of one million tourists and generate an income of US $ 1.7 billion for this year.

Social Security Contribution Tax and import ban open a mobile phone grey market

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The prices of all types of mobile phones and accessories would go up again soon after the introduction of the Social Security Contribution Tax, All Ceylon Communication Owners’ Association (ACCOA) said.

ACCOA further stated that the tax was imposed on major importers whose annual income is more than Rs. 10 million.

“The major importers used to add the tax when selling the products to retailers. In turn, the retailers increase the prices with added taxes when selling their products to customers,” Perera said.

He said the government announced the Social Security Contribution Tax at 2%, but when the product reaches the customer, it will be nearly 5%. As a result, the prices of mobile phones and accessories will definitely go up again.

He said the country’s economy is in a chaotic status now. The government can only increase the taxes and tariffs, but it cannot restore the national economy, Perera said.

A significant increase in the price of mobile phone accessories has been reported in Sri Lanka at present owing to import restrictions , the Sri Lanka Mobile Phone Importers and Sellers Association has revealed.

Association President Samitha Senarath told the media that there is a shortage of mobile phones in the country currently.

Stating that the purchasing of new mobile phones by the public has also drastically reduced, he said, however, prices of spare parts and mobile phone accessories have seen a significant increase.

“A battery that generally costs around Rs. 450 is now being sold at Rs. 1500 due to the current importation ban and current situation,” he added.

Mobile phone theft and smuggling of phones are rapidly increasing day by day making it difficult for the law enforcement authorities and Sri Lanka to crack down on robbers and smugglers.

Ineed online system developed to help the lost mobile phone owners has become a time consuming affair due to the lack of coordination between the Telecommunication Regulatory Commission (TRC) ,the Police and service providers in updating the system to locate the lost mobile phones.

Most of these thieves are used to sell stolen mobiles to underground operating centres engaged in dismantling phones to remove parts to re-sell them to phone repair shops at high prices, officials said.

The delay in the detection of lost phone locations has become an impetus to these robbers , they said.

A mobile phone dealer said, well-known brands such as Samsung, MI, and vivo do not come direct from China, but through Dubai.

The phones that are imported through Dubai are much better than the ones that are directly imported from China, he said. He added that Dubai’s standards are very high. However, business has now come to a standstill.

He said, prices have soared over the past couple of months like he has never seen before. He added that a mobile phone which used to cost around Rs 23,000, now costs around Rs 47,000. Not only the mobile phones, but also the covers, batteries, earphones, and chargers cost more.

Government officials get the blame for Coal Tender bending

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Government officials involved in the recent coal procurement process came under the scrutiny following recommendation of the unexpected administrative action Committee on Public Finance after considering the revelation of irregularities in the tender procedure, official sources said.

With the revelation of tender bending in a report submitted by Sri Lanka’s auditor general’s department, the parliamentary Committee on Public Finance (COPF) has recommended that action be taken against officials who oversaw a 2022-2025 coal tender for the Norochcholai coal power plant.

Minister of Power and Energy Kanchana Wijesekara in his reply in parliament on Tuesday October 04 has requested the committee to consider the officials’ version of events before making recommendations.

“The Auditor General has reported that the tender to procure coal for the Norochcholai power plant from 2022 to 2025 did not follow the approved procurement process,” COPF chairman and opposition MP Harsha de Silva said in parliament.

“The objective of the procurement process, which is giving the maximum equal opportunity for the firms that are qualified and interested parties to participate in the tender, has been broken.”

The company that was awarded a contract to supply coal on credit has refused to go ahead until legal clearance is given after the deal ran into controversy and some activists went to court.

Black Sands Commodities FZ LLC based in the UAE was given the deal to supply 4.5 million tonnes of coal from Vanino Port, Russia.

It was supposed to supply coal at a base rate of 295.22 US dollars and 33 dollars a tonne for freight.

The deal was supposed to be for seasons 2022-2023, 2023-2024 and 2024-2025. Critics have said the price was too high.

However, after Black Sand Commodities FZ-LLC was awarded at 328 dollars per tonne of coal, a consortium of Brown Investment and China Machinery & Engineering Cooperation (CMEC) came up with another bid and said it could supply coal from $285-$290 per tonne.

In early September, COPF agreed to conduct an investigation into the case following a request by Minister Wijesekara who said false allegations leveled against the awarded tender had led to questions of transparency and pricing.

“This coal tender was called and was awarded to Black Sands. The issue was this company was not a registered company. The registered company was a company called Suek AG,” said de Silva.

“Then how was the tender awarded to an unregistered company? This is beyond our spectrum therefore we called in the Auditor General.”

Tabling the final report of the AG, de Silva said it was made after discussions with the Ministry of Finance and the Secretary to Ministry of Energy and Petroleum.

During the audit, the tender that was awarded to Black Sand was canceled and the Lanka Coal Company called for a fresh international tender to purchase coal on September 23.

Based on the AG report and discussing it with the members of COPF, de Silva said, the committee recommended that the officials involved in the procurement process should be banned for at least a year from going into another procurement process.

However, objecting to the recommendation, Minister Wijesekare said there were limitations when conducting the audit and the officials who participated in the procurement process had offered an explanation to the auditor general which must be considered by the committee.

The committee should listen to the officials rather than make recommendations that could unfairly implicate those who participated in the procurement.

Replying to the minister, de Silva said COPF will no longer intervene in the case and further investigation should be done through the Committee on Public Enterprises (COPE) and Committee on Public Accounts (COPA).

BOI reveals export earnings of existing enterprises following the COPF bashing

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In the wake of annihilation from the Committee on Public Finance (COPF) over the failure to provide a proper analysis on 12 year tax holiday and other concessions to be given to a company and later getting the green light for it, the Board of Investment (BOI) has made public the details of export earnings of its existing enterprises.

The extremely poor state of affairs in granting tax concessions transpired when the BOI officials failed to justify why HCL Technologies, an India-based tech company, which already has commissioned operations in Sri Lanka and COPF has denied the approval of the relevant order on Monday(03).

The (COPF) has approved the Order under the Strategic Development Project Act, No. 14 of 2008 published under the Extraordinary Gazette Notification 2291/25 after the Board of Investment (BOI) provided a proper analysis earlier yesterday (Tuesday04).

HCL Technologies first entered Sri Lanka in September 2020 commissioning its Global Development Centre and the following year in August 2021, they entered into an agreement with Sri Lanka’s John Keells PLC to occupy 80 percent space in their 30-storey Grade A office building

However, the BOI, which is entrusted with the task of investment promotion , should come up before the public by revealing its contribution for the promotion and attracting FDI in to the country during past two years in order to clear its image already tarnished by its poor performance before the COPF, several economic analysts said.

BOI enterprises accounted for US $ 6.6 billion of merchandise exports during the January-September period, up 16 percent compared to the corresponding period of 2021, the apex investment promotion agency said.

According to the Export Development Board data, the merchandise export income to Sri Lanka during the January-August period was US $ 8.8 billion, up 12 percent from a year ago.

The export data for October are yet to be published. According to the BOI, 15 key performing sectors, which have shown over 19 percent of average growth in exports during the said period,

“The BOI has always been the forerunner of Sri Lanka’s export industry, contributing over 65 percent to the country’s overall export earnings and 85 percent to the national industrial export earnings,” said BOI Chairman Raja Edirisuriya.

Meanwhile, he said the BOI is currently focusing on both short-term as well as long-term strategic measures, which would result in increased FDI inflows to the country.

“As a short-term strategy is to attract the much-needed FDI, attracting and facilitating reinvestment by existing companies while repositioning Sri Lanka as a high-tech FDI destination based on Industry 4.0.

It is also developing new zones dedicated to priority sectors and digitisation of the entire investor experience to ensure seamless delivery of services to investors can be identified as long-term strategic initiatives,” Edirisuriya underlined.

BOI Director General Renuka M. Weerakone remains positive about the investment targets set for this year with the expected easing in the ongoing economic crisis.

All these are pep talks but no results and no performance, a leading economic analyst who is very familiar with BOI affairs said adding that Sri Lanka will not face the bankrupt situation and dollar crisis if this institution fulfilled its obligations in the past and present .