Sri Lanka may not be able to obtain fuel and coal via credit line from any other country, should the trade unions responding to the Ceylon Electricity Board (CEB) go on strike tomorrow (09) and cut off the country’s electricity supply leaving the entire country in the dark, warned Prime Minister Ranil Wickremesinghe, speaking to Parliament today (08).

Despite agitations and demonstrations not being a problem, keeping the country in the dark may risk fuel supplies from India, Wickremesinghe said, urging the parties endorsing the strike action not to ask him to import fuel from India in such a scenario.

If we have no urge to solve our own problems, will other countries help us at all? the Prime Minister questioned, revealing that some parties in the neighbour country are already against the idea of Sri Lanka receiving fuel from India.

“The international community always says that we should help ourselves and we may later receive their help,” Wickremesinghe added.

However, the Electrical Engineers’ Association of the CEB insisted that all workers of the Board will be stepping down from their duties from midnight today in objection to the proposed Electricity Amendment Bill, cutting off power to the entire country from about 8 am tomorrow.

MIAP

Sri Lanka’s prime minister says the country needs at least $5bn (£4bn) over the next six months to pay for essential goods as it faces its worst economic crisis in more than 70 years.

Ranil Wickremesinghe told parliament the money is needed for basic items such as food, fuel and fertiliser.

In May, Sri Lanka defaulted on its debts with international lenders for the first time in its history.

The country has held bailout talks with the International Monetary Fund.

On Tuesday, Mr Wickremesinghe, who is also the country’s finance minister, told parliament that more money was required this year to meet Sri Lanka’s basic needs.

He said the island nation, which has a population of around 22 million, requires $3.3bn for fuel imports, $900m for food, $600m for fertiliser, and $250m for cooking gas.

It comes as Sri Lankan lawmakers accepted a $55m loan for fertilisers from India’s Exim Bank.

The United Nations also plans to make a worldwide appeal for Sri Lanka, and has pledged $48m for food, agriculture and healthcare, Mr Wickremesinghe added.

He also warned of a slowdown in government payments to businesses and workers across the country, as funds are redirected to pay for food supplies.

“A lot of people will be without food, so the food programme we are initiating will ensure that all families, even if they have no income, they will have food,” Mr Wickremesinghe said.

“We can have community kitchens in temples [and] churches to supply the food. The community has to get involved,” he added.

The South Asian nation will also try to renegotiate a $1.5bn financial support deal with China, Mr Wickremesinghe said.

Sri Lanka is struggling with its worst economic crisis since gaining independence from the UK in 1948.

The country’s economy has been hit hard by the pandemic, rising energy prices, and populist tax cuts.

A shortage of medicines, fuel and other essentials has also helped to push the cost of living to record highs.

Sri Lanka’s official rate of inflation, the pace at which prices rise, rose by 39.1% year-on-year in May. At the same time, food prices in its largest city Colombo increased by 57.4%.

Mr Wickremesinghe is set to unveil an interim budget next month, as he faces the challenge of slashing overall government spending while still providing social welfare payments.

Last week, Sri Lanka’s agriculture minister called on farmers to grow more rice as he said the country’s “food situation is becoming worse”.

The government also announced an immediate increase to value added tax (VAT) from 8% to 12%. The move was expected to boost revenue by 65bn Sri Lankan rupees ($181m; £144m). It also said corporate tax would rise in October from 24% to 30%.

BBC

President Gotabaya Rajapaksa has reportedly approved the appointment of businessman Dhammika Perera as a member of Parliament and a Cabinet Minister.

Inquired about the ministerial post he was hoping for, Perera responded that he does not wish a specific scope but wishes to work with all to find a solution to the current economic crisis in the country in coordination with all the ministries, sources said.

Accordingly, the Business Mogul is believed to be appointed as a Cabinet Minister without Portfolio.

The President has also approved the implementation of the proposals put forward by Perera as a solution to the forex crisis and the proposals for Economic Development Strategy introduced by the DP Education Co Founder three years ago, “Sri Lanka A Developed Nation 2030,” according to sources.

All employees of the Ceylon Electricity (CEB) are preparing to step down from their duties from 12 am midnight today in objection to the proposed Electricity Amendment Act and taken trade union action.

Should the government fail to take over the system by 12 am midnight, all electrical workers will leave the service without damaging the machinery of the system, the trade union members said, revealing that the power supply, accordingly, could be cut off at around 8 am tomorrow (09).

Calling in a briefing by all trade unions responding to the CEB today (08), Chairman of the Electrical Engineers’ Association Anil Ranjith divulged that the proposed amended bill deprives the opportunity to purchase power for a competitive price by paving the way for the government to allow any party they favour purchase power for any desired price.

This at all aspects would be a severe injustice to the public, he noted.

Meanwhile, the proposed 500 MW wind power project in Mannar, Poonaryn and other areas is to be handed over to the Indian Power Giant ADANI at a cost of US $ 7.55 cents, raising suspicions given that the production cost of the 100 MV Thambapavani power plant built by the CEB is less than $ 4 cents, Ranjith noted, suggesting that the production cost could have been slashed instead of handing the project over to ADANI at a higher price.

The Union chief also begged the question why the previous price declared by ADANI, US $ 6.50 cents, suddenly changed to US $ 7.55 cents.

Due to the government’s actions of directly handing over the wind power plant project to ADANI, the local investors, who bid lower prices, have been deprived of the opportunity to come forward, Ranjith noted, proposing that an attempt is being made to earn unlawful profits together with the Indian company.

MIAP

Nandalal Weerasinghe is making a huge effort to get his 6 year contract cemented. Which he is likely to get given that the President who understands no economics has been convinced by him that he is doing a great job. The President as usual is so naive that he will be taken for another good ride. This time by Nandalal Weerasinghe. The few things Nandalal has done shows the current crisis is way beyond his imagination. He began by saying the opposition was supporting him. He politicized the CBSL from the word go. Then he swallowed the opposition ropes and increased the interest rates by 100%.

He has virtually destroyed the livelihoods of the Small Businesses. In Sri LANKA other than tenders what other businesses can you run paying 25% interest. Very soon these businesses will add to the burden of the government without jobs and income to feed themselves and their families. Next he committed the biggest mistake, he defaulted on an small interest payment.

The first time in the history of the country. As Governor he will go down in history for doing this. No other Governor in the right mind would do this without even making an effort to mobilize funding to settle the payment. Very soon we understand a case is to be filed against him. The tourism industry is up in arms with him for being so insensitive about the moratoriums for that sector, he had advised them up shutdown or pay up. The future of the country depends on the tourism industry, over 10% of the country workforce works in that sector. His decision to close the open account with out any safeguards has resulted in a shortage of essential items.

His latest stunt mobilization of the pensioners to issue a statement in return to increase their pensions. What a joke . He then went one step further and issued a twitter message using the @CBSL twitter handle saying the CBSL has a good relationship with the Prime Minister.

What a shame? This shows his maturity and wisdom to hold the position of Governor. CBSL sources say if he is given a free hand it will be like giving a “ Wadurata Dalipeheya“. He will cut anything that comes in between him to survive . This is no longer a joke, the country has no money and resources. We cannot certainly have a cow boy as Governor of the central bank. It is peoples lives that we are talking about. Wake up Mr President before it is too late for Sri Lanka.

Adolf

13 suspects including SLPP MP Milan Jayathilaka and Mahinda Kahandagama arrested and remanded over the mob attack on peaceful protesters at MainaGoGama and GotaGoGama launched by pro-Rajapaksa protesters were granted bail, as the suspects were produced before Fort Magistrate Thilina Gamage today (08).

However, three more suspects including SLPP MP Sanath Nishantha were further remanded till June 15 as ordered by the Court.

MIAP

The Colombo Fort Chief Magistrate Court today (08) issued a warrant to arrest former Minister Johnston Fernando

That is, based on a request made by the Attorney General’s Office to issue a warrant for the arrest of the MP for evading Court and not staying in the designated places.

Fernando had lodged a petition in the Appeal Court seeking an order barring any attempt to arrest him by the Criminal Investigation Department (CID) over the allegation of being a suspect to the May 09 assault on MainaGoGama in front of Temple Trees and GotaGoGama in Galleface, claiming that such an arrest would be unlawful.

MIAP