The Paddy Marketing Board will start releasing 43,000 metric tons of rice to the market from today.
Chairman of the Paddy Marketing Board Neil de Alwis stated that the rice will be sold to the public through Sathosa, cooperatives, and supermarkets.
Accordingly, a kilogram of red/white Kekulu rice can be bought for Rs. 197, a kilogram of Nadu rice for Rs. 199, a kilogram of Samba rice for Rs. 205 and a kilogram of Kirisamba rice for Rs. 215.
By 12th June 2022, it will be 2 months from the time Finance Minister Ali Sabry and Governor Nandalal Weerasinghe hastily announced a Forex debt default (without prior Cabinet and/or Parliament discussion or approval) while sugar-coating the highly damaging and controversial exercise by saying it’s a “soft” debt standstill.
From then onwards, Sri Lanka’s economic and social pains have been increasingly exacerbated and everyone now realises that the country is presently gripped with the repercussions of a “hard” default.
It is also now well known in the government inner circles that the debt default decision was taken by then Finance Minister cum President’s personal lawyer Ali Sabry and “behind-the-scenes” IMF pensioner and incoming Governor Nandalal Weerasinghe with the concurrence of President Gotabaya Rajapaksa and the persistent advice and support of SJB MP Dr. Harsha de Silva.
However, so far, after 2 months into the default, there is NO timeframe set for restructuring, NO loan settlement proposals, NO restructuring conditions announced for the creditors’ consideration, NO macro-economic or fiscal targets set for debt sustainability, NO bilateral funding support received from any other multi-lateral institution, and NO tangible financial assistance forthcoming from any other country as “bridging finance”. It’s only the steps taken by the previous authorities that are being pursued by the Governor and the Treasury Secretary to secure any bridging finance.
Meanwhile, as is well known, after the sovereign forex loans were defaulted, the credibility of the country has been lost. The country’s international credit rating has been slashed. Foreign direct investments and forex loans have stopped. The country has lost access to international capital markets for many years to come. Local Banks find it almost impossible to open letters of credit and carry out forex transactions. Forex funding of local banks have been curtailed by international lenders. Forex-funded infrastructure projects have stopped. Certain forex creditors and bond holders are reportedly getting ready to file legal action to recover their dues. Some Forex creditors are also reportedly calling for the re-structure of local debt, which, if done, could lead to serious socio-economic repercussions. Thousands of small and medium sized entrepreneurs are facing the risk of collapse. Hundreds of thousands of livelihoods are in jeopardy. Inflation is escalating to unbearable levels. Interest rates have risen sharply. Issue of Treasury Bills to the Central Bank (money printing) has increased significantly. The LKR is losing value. The Government’s local currency payments, including salary and pension payments are being stressed, more than ever before. Food, fuel, medicine, gas, and electricity shortages are occurring very frequently, with no solution in sight. All normal living conditions are being threatened and/or interrupted, with signs of the situation getting much worse.
That is the mess that the “debt default” has put Sri Lanka into. In fact, after the default, Sri Lanka is the pariah of the financial world, with Sri Lankan banks being unable to even open a simple letter of credit for 100,000 US dollars.
It’s time to deal with this debt default crisis as the country’s highest priority and deal with it in a PRACTICAL manner, as the fate of the nation depends on resolving this crisis VERY SOON. Impractical and theoretical lectures and pathetic blame-games by pompous ‘Doctors’ who have placed the country at this grave risk, will not work, as already proved by them at the ground level.
It’s also time to investigate the actions and the motives of the persons who advised the President to take this suicidal path of debt default, particularly the actions and motives of Ali Sabry and Nandalal Weerasinghe, who have to explain their actions which have pushed Sri Lanka into a new and irrecoverable economic abyss. The duo will need to explain first, as to why they announced the debt default without making arrangements to secure the payment of just USD 78 million on 18th April 2022 to the China Development Bank, and second, as to why they did so on 12th April 2022, even as Sri Lanka’s envoy in China Dr Palitha Kohona was confirming to Bloomberg that Sri Lanka was on the verge of securing a loan of USD 1 billion and a trade facility of USD 1.5 billion from China.
In these circumstances, the action of default by Ali Sabry and Weerasinghe is surely the most irresponsible and reckless action ever taken by any public officer in independent Sri Lanka, which should be investigated very soon at the highest level. President Gotabaya must take
the responsibility for this like the organic fertilizer disaster that has created a food security issue.
Public Interest
CEB Chairman MC Ferdinando says he will withdraw his statement before the COPE Committee on the proposed Mannar Power Project.
In a letter to the COPE chairman, he had said that he had made the statement due to the pressure and sentiments at the time and that the name of the Indian Prime Minister had been mentioned there.
Accordingly, he has informed in his letter that he apologizes unconditionally in this regard.
The Chairman of the Ceylon Electricity Board (CEB) had told the COPE Committee that President Gotabhaya Rajapaksa had pressured him to hand over the Mannar Power Project to the Adani Company as the Prime Minister of India Modi was insisting on giving it to Adani.
Former Minister Pavithra Devi Wanniarachchi and former Minister of State Diana Gamage have been nominated for the newly gazetted Ministry of Women and Children’s and Social Empowerment, reports say.
Although Pavithra Wanniarachchi has been at the forefront of seniority, due to her failure in all the three Ministries of Health, Power and Transport in the past, as well as the general dislike of the ministers who have held cabinet posts in the past, Diana Gamage is more likely to be in charge of the Ministry of Women and Child Affairs and Social Empowerment.
On the contrary, it is said that Diana Gamage has been talked about in the ruling party as an MP who is interested in rebuilding the country’s economy, who speaks out and stands up for her views despite criticism and insults, as well as who is eager to work.
According to sources, Diana Gamage will most likely hold the ministry post.
President Gotabhaya Rajapaksa has stated that he has not influenced any individual or institution regarding the handing over of the proposed wind power project in Mannar.
Accordingly, he emphasizes that he strongly rejects the statement made by the Chairman of the Ceylon Electricity Board at the Parliamentary Committee on Public Enterprises (COPE).
CEB Chairman M.C. Ferdinando recently told the COPE Committee that President Gotabhaya Rajapaksa had pressured him to hand over the proposed wind power project in Mannar to Adani India.
Sri Lanka’s High Commissioner to India Milinda Moragoda, paid a courtesy call on the Chief Minister of Tamil Nadu, Thiru M.K. Stalin on Saturday (04) morning at the Chief Minister’s office in Chennai. The Chief Secretary of the Tamil Nadu Government Thiru Irai Anbu and several other key State officials were present at the meeting.
This was the first time that a Sri Lankan High Commissioner in New Delhi met with the Chief Minister of the State of Tamil Nadu after 2011.
The courtesy call on the Chief Minister of Tamil Nadu by the High Commissioner came as part of the latter’s plan to expand Sri Lanka’s footprint at state level to promote greater interactions between Sri Lanka and the states of the Indian Union as stipulated in his policy road map the “Integrated Country Strategy for Sri Lanka Diplomatic Missions in India”.
At the outset, the Chief Minister extended a warm welcome to the High Commissioner of Sri Lanka. During the very cordial discussion that followed, the High Commissioner thanked the Chief Minister and the people of Tamil Nadu for the humanitarian assistance worth of LKR two billion that they recently extended to Sri Lanka to help it manage the current economic situation.
In response, Chief Minister Stalin observed that he was concerned with the situation in Sri Lanka and had made arrangements to immediately dispatch the first shipment of essential commodities. He added that a second shipment is also in line to be dispatched and that a few more shipments are expected.
The High Commissioner and the Chief Minister discussed an array of areas pertaining to the relationship between Sri Lanka and the State of Tamil Nadu, including the fishermen’s issue. The two dignitaries reviewed the ancient and strong ethnic, cultural and religious affinities between Tamil Nadu and Sri Lanka and discussed the ways to further strengthen them. In this regard, Chief Minister Stalin requested that Sri Lanka may wish to install a statue of the celebrated Tamil poet and philosopher Thiruvalluvar in a suitable premise in Sri Lanka, such as a university. The High Commissioner welcomed the suggestion made by the Chief Minister and undertook to support and facilitates this initiative.
With a view to having a better coordination on all aspects of the relationship between Sri Lanka and the State of Tamil Nadu, High Commissioner Moragoda requested the Chief Minister to designate a focal point at state level. High Commissioner Moragoda invited Chief Minister Stalin to visit Sri Lanka as well.
High Commissioner Moragoda also presented a copy of the Tamil translation of the book containing his parliamentary speeches to the Chief Minister. The High Commissioner recalled how he had presented a copy of the same book to the father of Chief Minister Stalin, the late Thiru M. Karunanidhi, former Chief Minister of Tamil Nadu, in 2006.
High Commissioner Moragoda was accompanied by the Deputy High Commissioner of Sri Lanka to Southern India Dr. D. Venkateshwaran, Deputy High Commissioner of Sri Lanka in New Delhi Niluka Kadurugamuwa and Second Secretary of the Deputy High Commission of Sri Lanka in Chennai Supun Deshaprema to this meeting.
High Commission of Sri Lanka
New Delhi
10 June, 2022
A delegation of the China Asia Economic Development Association Urban Cooperation Committee (CAEDA.UCC) led by Chairman Lu Hongjun, called on the Ambassador Dr.Palitha Kohona, on 02. June 2022, to explore ways and means of increasing Sri Lanka exports to China.
The Chairman of CAEDA.UCC, Lu Hongjun was very enthusiastic about the initiative given the longstanding friendly relations between the two countries. He said that the Chinese consumers will warmly welcome Sri Lanka products, especially Ceylon Tea, sapphires, spices, coconut products, seafood etc. Those products are already famous around the world, and also, they have gained a high reputation in the Chinese market.
E-commerce is the booming trend in China. Lu would promote Sri Lanka products online, through mechanisms such as Douyin (Ticktock in China). At the same time, establishing Sri Lanka national pavilions for offline promotions would also popularize Sri Lanka products among Chinese customers.
The Ambassador, Dr.Palitha Kohona, encouraged the Chairman Lu, and asked the CAEDA.UCC to establish the Sri Lanka national pavilions both online and offline. China being the most lucrative consumer market in the world, we should grab it. He also emphasized that increasing Sri Lankan exports to China could help Sri Lanka overcome the current crisis.
The offline national pavilions will be launched in Beijing, Xi’an and Hunan and the online national pavilion will be parallelly initiated in Douyin.
Embassy of Sri Lanka
Beijing
10 June, 2022
A meeting was held between Prime Minister Ranil Wickremesinghe and Dhammika Perera at the Prime Minister’s private residence this (11) evening.
The cordial discussion between the two has reportedly addressed future initiatives to be taken.
The renowned business magnet Perera was appointed as a National List MP of the Sri Lanka Podujana Peramuna (SLPP) yesterday (10).
MIAP
The debilitating crisis in Sri Lanka has left nearly half of the children in the country in need of some form of humanitarian assistance.
The UN has launched an appeal to address the urgent needs of the most vulnerable population within the next four months. To scale up response to the rising needs of children in the next seven months, UNICEF is today appealing for US$25.3 million to save lives and bring nutrition, healthcare, safe drinking water, education, and mental health services to 1.7 million vulnerable children in Sri Lanka.
“The current crisis is stretching families to their limits,” said Christian Skoog, UNICEF Representative in Sri Lanka. “Children are going to bed distressed and on empty stomachs. Many children are not regularly attending school, and hospitals are fast running out of medicines, including for children and pregnant women. If we do not act now, it is the most vulnerable boys and girls who will pay the highest price for a crisis not of their making.”
Even before the current crisis, Sri Lanka had the second highest child malnutrition rate in South Asia, and 2 in 5 infants were not fed the minimum acceptable diet.
With soaring food prices, 70 per cent of households are now reporting reduced food consumption, and the fuel crisis and frequent power cuts are hindering vital services for children, including healthcare and education.
Access to safe water for drinking and domestic use is declining, posing an increased risk of water-borne diseases
“The current crisis is disproportionately impacting the most vulnerable boys and girls in Sri Lanka, who were already confronted with the toxic combination of poverty, COVID-19, and repeated climate-related disasters,” said Mr Skoog.
“UNICEF is strongly urging donors to support Sri Lanka’s children through its humanitarian appeal. Together, we can ensure the steady gains for children made by Sri Lanka over many years are not permanently reversed.”
As part of its appeal for children, UNICEF plans to:
With more than 50 years of field presence in Sri Lanka and a network of partners across the country, UNICEF is leading efforts on the ground to save lives and ensure children are spared the most devastating impacts of the crisis.
Sri Lanka needs to get bridge financing from friendly donor countries before restructuring its foreign debt and entering into a framework programme with the IMF, to last for next six months, finance ministry sources said.
Known external debt repayments over the next five years amount to US$ 26 billion, or about US$ 5 billion a year, which is over 80 percent of government revenue in 2020.
India and the World Bank are looking at extending nearly US$ 2 billion in bridge finance to help it continue with essential imports.
However The World Bank has ruled out bridge financing or new loan commitments to crisis hit Sri Lanka until the island nation’s economy sets up an adequate macroeconomic policy framework, the global lender has said
The country of 22 million people is struggling to pay for imports after a sharp drop in foreign exchange reserves, which has led to currency devaluation and rising inflation.
Sri Lanka, which has an external debt of US$51 billion, with protests across the country over prolonged power cuts and a lack of fuel and medicines, has sought to secure funds to help it through its worst economic crisis. is working on a comprehensive plan for foreign aid.
Under this setup Sri Lanka has sought bridge financing from Singapore as well as an increase in foreign direct investments.
At the invitation of the Minister for Foreign Affairs of Singapore, Dr Vivian Balakrishnan, Minister Foreign Affairs Prof. G. L. Peiris undertook an official visit to Singapore from 8-9 June, 2022.
An official visit of a Foreign Minister of Sri Lanka to Singapore is taking place after four years.
During the visit, a bilateral meeting was held with the Minister for Foreign Affairs of Singapore, following which Minister Peiris was hosted to an official lunch.
Minister Peiris also met with Singapore’s Minister of Finance Lawrence Wong, who is due to assume the post of Deputy Prime Minister of Singapore on 13 June, 2022.
Minister for Law and Home Affairs K Shanmugam hosted the Sri Lankan Foreign Minister for lunch on 8 June with the participation of the Minister for Trade and Industry of Singapore S. Iswaran with many other dignitaries.
Sri Lanka’s foreign exchange reserves are at dangerously low levels (US$ 1.92 billion or less than one month of imports), especially given the US$ 6.9 billion in debt service payments coming due in 2022.
The government has asked some creditors to restructure their debt and has also sought help from China, Japan and the Asian Development Bank.
India has already agreed to double the existing US$ 500 million line of credit for fuel and defer about US$ 1.5 billion in import payments that Sri Lanka is required to make to the Asian Clearing Association.
The Indian High Commission said it has also extended the tenure of the $ 400 million swap awarded in January.
