Sri Lanka recorded nearly a billion-dollar deficit in the trade account of the balance of payment in the month of February 2022, as the imports continued to run stronger while merchandise exports recorded its eighth consecutive month of over a billion-dollar earnings,the Central Bank announced.
The cumulative deficit in the trade account during January to February 2022 widened to US dollars 1,640 million from US dollars 1,227 million recorded over the same period in 2021.
The ratio of the price of exports to the price of imports, deteriorated by 10.7 per cent in February 2022, compared to February 2021, as the increase in import prices surpassed the increase in export prices.forces beyond the expected level of depreciation in the measured adjustment.
The deficit in the trade account widened to US dollars 781 million in February 2022, compared to the deficit of US dollars 572 million recorded in February 2021.
However, on a monthon-month basis, the trade deficit declined in February 2022 from US dollars 859 million recorded in January 2022.
Earnings from merchandise exports in February 2022 grew by 14.7 per cent over February 2021, recording at US dollars 1,092 million.
An increase in earnings was observed in industrial exports and mineral exports, while a decrease was observed in agricultural exports.
The cumulative export earnings, which increased by 16.1 per cent during January-February 2022 over the same period of the last year, amounted to US dollars 2,192 million
Overall imports: Expenditure on merchandise imports increased by 22.9 per cent to US dollars 1,873 million in February 2022, compared to US dollars 1,524 million recorded in February 2021, while recording a decline, compared to December 2021 and January 2022.
An increase in expenditure was observed across all main categories, with intermediate goods imports contributing mainly to the expansion.
On a cumulative basis, total import expenditure amounted to US dollars 3,832 million during the period from January to February 2022, recording an increase of 23.0 per cent, compared to US dollars 3,115 million recorded in the corresponding period in 2021.
. Tourist arrivals showed a notable recovery in February 2022 over the same month in the previous year. Workers’ remittances continued to moderate in February 2022. Foreign investment in the Colombo Stock Exchange (CSE) recorded a net inflow during the month.
The weighted average spot exchange rate in the interbank market hovered around Rs. 202 per US dollar during February 2022.
However, the Central Bank allowed a measured adjustment in the exchange rate in the first week of March 2022, in view of the heightened pressures on the exchange rate amidst subdued liquidity in the domestic foreign exchange market, resulting in an overshoot subsequently by market Trade Balance.
British investors have expressed interest to invest in Port City Colombo Special Economic Zone as many opportunities are available to a broad spectrum of prospective investors , Sri Lanka High Commission in UK highlighted.
The Deputy chairperson of Commonwealth Enterprise and Investment Council (CWEIC), Hugo Swire, highlighted that the Port City offers many prospects for Sri Lanka to significantly benefit from trade and internationalisation, aiding an early recovery from the prevailing economic circumstances in the island
He made theses observation when he participated in an investor event showcasing the Port City Colombo Special Economic Zone held at the High Commission of Sri Lanka in the United Kingdom on 26 April.
It was organised by the Project Company, CHEC Port City Colombo Ltd., in association with the High Commission and the Commonwealth Enterprise and Investment Council (CWEIC), in which the Project Company is a Strategic Partner.
High Commissioner Saroja Sirisena pointed out that Sri Lanka has maintained long-standing strong linkages with the United Kingdom particularly in areas such as education, welcoming a diverse group of participants comprising corporate leaders, high net worth individuals and private equity investors.
CWEIC Deputy Chair Hugo Swire, underlined that many opportunities are available to a broad spectrum of investors as the Port City comes into fruition, given the strategic location, business friendly policies and the outstanding infrastructure that is under development.
The purpose of the event was to create awareness of the Multi-services Special Economic Zone established by the Colombo Port City Economic Commission Act No. 11 of 2021 in May 2021.
CHEC Port City Colombo Assistant Managing Director Thulci Aluwihare in his presentation highlighted the numerous business-friendly provisions in the legislation that augments the ease of doing business in Sri Lanka.
While inviting investment to Port City, Aluwihare also elaborated on the opportunity for Port City to collaborate with the Board of Investment (BOI) in an effort to revive the Sri Lankan economy by attracting Foreign Direct Investments to the manufacturing and services sectors.
Aluwihare emphasised the need to reinforce Sri Lanka’s commitments towards investor protection in this difficult economic situation and highlighted the relevant legal provisions affording investor protection as per the newly enacted Colombo Port City Economic Commission Act.
He emphasised the need for Port City to be economically ring-fenced to insulate businesses and investors from macro-economic challenges of the domestic economy.
It is important to instil Investor confidence and regulations are currently being drafted by the Colombo Port City Economic Commission to assert this position, he said.
Gateway Group Chairman Dr. Harsha Alles, who has entered into a Memorandum of Understanding with the Colombo Port City Economic Commission and CHEC Port City Colombo to facilitate the development of a state-of-the-art international school in Colombo, shed light on the rigorous process followed in this regard, assisted by Oxygy – education advisors in the UK.
He indicated that while many esteemed schools in the UK have expressed interest in setting up Port City, the objective of the investor consortium is to select the institution that offers the most holistic student experience.
Alles invited the participating investor community to join the investment consortium pioneering the entry of a renowned UK-based education brand’s entry into South Asia.
As a landmark development project in Sri Lanka, Port City Colombo will continue to invite investment from across the world to augment the economic recovery of Sri Lanka.
CHEC Port City Colombo will embark on a series of investor events across the region over the coming months to highlight the investment opportunities on offer.
The verdict in the case filed against former Minister Wimal Weerawansa’s wife Shashi Weerawansa alias Shashi Weerawansa alias Randunu Mudiyansela’s Shirsha Udayanthi for obtaining an informal diplomatic passport by submitting false information to the Department of Immigration and Emigration has been postponed until May 27.
The trial in this case ended in February and the verdict was due in March.
Accordingly, the announcement of this verdict today was postponed for the third time.
Sri Lanka is at a crossroads as an economic crisis upends the lives of its 22 million people. The Rajapaksa brothers, hailed by many as heroes for winning the civil war, are now reviled as leaders. How did this happen and what comes next?
Since early April protesters had been demanding that President Gotabaya Rajapaksa and Mahinda, his prime minister, quit for leading the country to economic ruin – but this week saw a decisive turning point.
First, Mahinda Rajapaksa resigned after his supporters attacked anti-government protesters, triggering deadly clashes across the country. Dozens of houses of politicians were torched, including some owned by the Rajapaksas.
Mr Rajapaksa, 76, had to be evacuated from his official residence after it was besieged by angry crowds. ADVERTISEMENThttps://bcf7eeee539113183e718eb53b0c2ef0.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html?n=0
He’s holed up in a naval base in the north-east for his safety. A court has banned him from leaving the country – utter humiliation for a man who was twice president.
Image caption, Vehicles were set alight outside Mahinda Rajapaksa’s official residence this week
His departure has done nothing to ease the growing pressure on his beleaguered younger brother, 72.
So far the president has ignored the calls to quit, although he has now been forced to offer some concessions. He agreed to transfer some his executive powers to parliament, and has appointed political veteran Ranil Wickremesinghe as the new prime minister heading a proposed cross-party government.
But his political future is very much still on the line, and some believe it’s only a matter of time before he’s forced to go.
Sri Lanka can scarcely afford further political instability as it stares at its worst economic crisis since independence from Britain. People are seething with anger over soaring prices and shortages of food and fuel.
It’s a dramatic fall from grace for a family that has dominated Sri Lankan politics for more than a decade.
Mahinda Rajapaksa was once celebrated by the majority Sinhalese as a hero for bringing an end to nearly three decades of civil war when the Tamil Tiger rebels were crushed in 2009 during his first term as president.
At victory parades and mass public events soon after the war he was compared to Sinhala Buddhist kings.
“He was the most popular Sinhala Buddhist leader in post-independence Sri Lanka. Some even hailed him as Emperor Mahinda,” says veteran political analyst Kusal Perera.
In his 2017 book Rajapaksa: The Sinhala Selfie, Mr Perera highlights the Rajapaksa family’s role in the island’s politics and how Mahinda groomed himself for power.
Image caption, Gotabaya (left) and Mahinda Rajapaksa in 2013 – Sri Lankans blame for the current crisis
His father was a parliamentarian and Mahinda gradually rose from opposition leader in parliament to prime minister in 2004.
When he became president a year later, he made Gotabaya defence secretary. It was a big career jump for the younger brother who was living a quiet life in the US after retiring from the Sri Lankan military.
Gotabaya came back for his brother’s campaign and rose to prominence, earning a reputation for ruthlessness.
Soon, other brothers and relatives joined the government. It was Mahinda, the family patriarch, who was instrumental in establishing the Rajapaksa empire.
Up to now the brothers have always stood together. But cracks started appearing recently, especially after Gotabaya asked Mahinda to “take one for the team” and heed protesters’ calls to resign.
The demand was a huge snub for a man who brought his younger brother into government – and certainly not the way he wanted to end his political career.
“He was basically pushed to the wall and forced to leave in a huge youth protest that he fumbled in handling. His age will hold against his return,” Mr Perera says.
Mahinda’s eldest son, Namal, denies the brothers have a problem.
“But definitely there is a policy difference between the president and the [former] prime minister,” he told the BBC before this week’s resignation.
He said his father had been always with the farmers and the masses, whereas Gotabaya Rajapaksa had a different approach “looking more into the floating vote rather than the masses or hardcore SLPP [governing party] vote”.
Image caption, Army personnel stand guard outside the president’s office in Colombo this week
Protesters may be glad Mahinda Rajapaksa has resigned, but they remain determined Gotabaya must do so too, something his supporters rule out.
“Just because there’s chaos outside – for which there are very valid reasons, we all agree – that does not necessarily mean that he should resign,” former media minister Nalaka Godahewa told the BBC.
It’s not clear what the president will do now he has lost the support of the voters that swept him to power in 2019.
Mr Rajapaksa has reportedly told people close to him that he’s not interested in a second term but wants to lead the country out of the economic crisis.
With anti-Rajapaksa sentiment widespread in the country, his options to do that seem limited. Backed into a corner, there are concerns the president, known for his tough approach, could try to use the military to stay in power.
Ramallah, occupied West Bank – A state service for the slain Al Jazeera journalist Shireen Abu Akleh took place in the Palestinian city of Ramallah, a day after she was killed by Israeli forces.
Thousands of Palestinians attended the ceremony, which took place at the Palestinian Authority’s (PA) presidential compound at noon on Thursday in the occupied West Bank city.
Abu Akleh was shot dead by Israeli forces while she was covering an Israeli military raid in Jenin city early on Wednesday.
President Mahmoud Abbas honoured Abu Akleh and bid her farewell at the compound, where a large procession by the national guard was also held.
Speaking at the ceremony, Abbas said Israel was “fully responsible” for Abu Akleh’s death.
“We reject the joint investigation with Israel into the killing of Abu Akleh,” Abbas said, adding that the Palestinian officials would go to the International Criminal Court (ICC) to seek justice.
Abu Akleh’s killing has sent shockwaves throughout Palestine and the Arab world.
The 51-year-old was a veteran correspondent for Al Jazeera Arabic television, joining the station in 1997 only a year after its launch.
Many in Palestine remember her for her coverage of the Israeli army’s large scale invasions of major West Bank cities during the Second Intifada, or uprising, that began in 2000.
“The news of her martyrdom was like a slap on the face of every Palestinian,” said journalism student Azhar Khalaf.
The 22-year-old Birzeit University student described Abu Akleh as a “media icon” and a “model”.
“She was in every home, she felt the pain of every Palestinian and conveyed their pain,” Khalaf told Al Jazeera. “She was the voice of truth and justice.”
Following her killing, large photos of the correspondent were plastered on a big screen at al-Manara Square, in Ramallah’s city centre.
“Shireen was close to the people,” 37-year-old political and social activist Hazem Abu Helal told Al Jazeera at the state service.
“Everyone knew her not only for her work but also her involvement in the community. She was a part of many initiatives, in social and cultural events and organizations,” said Abu Helal, describing her as “kind” and “professional”.
Journalists, colleagues and friends poured into the Istishari Hospital on Thursday morning, where the service began at 10:30am (07:30 GMT).
Groups of individuals close to Abu Akleh were allowed inside the morgue at the hospital, emerging with heavy tears and loud, pain-filled cries.
Her body was then brought out and prayers held before she was carried out in a PA national guard vehicle and taken to the presidential compound.
Following the ceremony at the compound, Abu Akleh’s body was taken in an ambulance and a convoy to Qalandia checkpoint, which lies between Ramallah and Jerusalem. She was transferred to the St Louis French Hospital in Sheikh Jarrah, in occupied East Jerusalem, where her family lives.
Her burial will take place on Friday at the Old City.
Friends and family bid Shireen Abu Akleh farewell at the Istishari Hospital in Ramallah on Thursday morning [Zena Al Tahhan/Al Jazeera]
On Wednesday and Thursday, Abu Akleh was honoured in several Palestinian cities, including Jenin, where she was killed, Nablus, and Ramallah, as her body traveled from the northern West Bank to Jerusalem, in a long procession demonstrating the outpouring of grief among Palestinians.
Her body was carried in several protests, with hundreds of Palestinians attending and chanting slogans including “with our souls, with our blood, we sacrifice for you, Shireen,” and, “From Ramallah, to Jenin, may God have mercy on your soul, Shireen.”
Mohammed Shtayyeh, the PA prime minister, called Abu Akleh “a national figure” and “a star”.
Hailing her professionalism, Shtayyeh told Al Jazeera that Abu Akleh was “not only a correspondent, but she lived the cases and was reporting about every single detail of the Palestinian daily life”.
“Her roots were so deep-rooted in Jerusalem, and her family as well,” he added. “I have seen Shireen Abu Akleh nearly everywhere – in condolences houses, in celebrations, in demonstrations and in sit-ins.”
Prayers are held over the body of Shireen Abu Akleh at Istishari Hospital in Ramallah on Thursday morning [Zena Al Tahhan/Al Jazeera]
Killing
In her last email to the network, Abu Akleh sent a message to Al Jazeera’s Ramallah bureau at 6:13am (3:13 GMT) in which she wrote: “Occupation forces storm Jenin and besiege a house in the Jabriyat neighbourhood. On the way there – I will bring you news as soon as the picture becomes clear.”
She was wearing a press vest and was standing with other journalists when she was shot with a bullet just under her ear.
Another Al Jazeera journalist, Ali al-Samoudi, was also wounded by a bullet in the back at the scene. He is now in stable condition.
Al-Samoudi, witnesses, and other journalists said there were no Palestinian fighters present when they were shot at, directly disputing an Israeli statement referencing the possibility that it was Palestinian fire.
“We were going to film the Israeli army operation and suddenly they shot us without asking us to leave or stop filming,” said al-Samoudi.
“The first bullet hit me and the second bullet hit Shireen … there was no Palestinian military resistance at all at the scene,” he added.
Shatha Hanaysha, a local journalist who was standing next to Abu Akleh when she was shot dead, said the group of journalists had been directly targeted.
“We were four journalists, we were all wearing vests, all wearing helmets,” Hanaysha told Al Jazeera.
“The [Israeli] occupation army did not stop firing even after she collapsed. I couldn’t even extend my arm to pull her because of the shots being fired. The army was adamant on shooting to kill.”
Israel now appears to be walking back some of its initial claims after government officials, including Prime Minister Naftali Bennett, claimed a video appearing to show Palestinian fighters firing in a Jenin alleyway was evidence that Palestinians had killed Abu Akleh.
Verification efforts have shown that the alleyway was not in the area where Abu Akleh was shot.
Israel’s military chief, Lieutenant General Aviv Kochavi, has now said that it is unclear who shot Abu Akleh.
Back at the state service, a sea of people gathered to bid Abu Akleh farewell.
“We came today to stand with Shireen. I opened my eyes to the world watching Shireen,” 19-year-old Eleen Salameh told Al Jazeera.
Salameh, whose family owns a salon in Ramallah that Abu Akleh would frequent as a client, described her as a “powerful person”.
Seen here are officials from Gestetner-Telkom and TECNO Mobile
The TECNO POP 5 LTE
Entering into the telco sub-sector, Gestetner-Telkom, the newly incorporated division of Gestetner of Ceylon PLC, the pioneers in office automation with a rich history spanning over seven decades, recently tied up with Transsion Holdings for national distributorship rights in Sri Lanka for one of the world’s fastest growing smartphone brands, TECNO Mobile following its captive market position in Africa & South Asian Regions in smartphones and accessories.
The premium smartphone and smart device brand with its motto “Stop At Nothing” brings stylishly designed products that inspires one to uncover a world of possibilities, complementing their smarter and fashionable connected lifestyle. TECNO enjoys a presence in 70 countries with over 80,000 growing point of sales, backed by its data driven global and local R&D innovation centers and award-winning leadership in product design, camera technology, and brand popularity.
As a licensed TRC approved importer mobile phones, Gestetner-Telkom is well positioned to capture the young-at-heart consumers of TECNO Mobile, through its regional distributors strategically located across the country.
Seyed Anzsar, Chairman- Gestetner of Ceylon PLC, said “I am happy to announce that Gestetner of Ceylon PLC is stepping into the Mobile & IT Category with our newest Division ‘Gestetner-Telkom.’ With the collaboration of Transsion Holdings and TECNO brand we are geared to provide better quality smartphone devices and timely after-sales services to our valued customers.”
Ray Chaw, Country Director, Transsion Holdings, said “We couldn’t be happier to have Gestetner-Telkom as our partner in Sri Lanka. With their decades of expertise and unparalleled service coupled with their modern outlook and admirable energy, we are highly ambitious and confident that TECNO will evolve to be one of the sought-after brands among the young consumers here.”
Along with this exciting announcement, Gestetner-Telkom initially launched the TECNO POP 5 LTE in April 2022 featuring 6.52″ HD+ Dot Notch Screen, large 5000 mAh long battery life, 8MP AI Dual Rear Camera with Dual Flash, 32GB ROM + 2GB RAM, Fingerprint Unlock among many others.
Gestetner-Telkom is also planning on launching the TECNO Spark 8C soon. The Spark 8C comes with a 6.6″ HD+ Dot Notch display, with upto 6GB larger RAM, 5000mAh battery, 13MP rear Dual Camera and Dual Flashlight with 8MP Selfie camera with front flash, and IPX2 Splash Resistant.
“In today’s modern world, people stay connected with smart devices. We Gestetner-Telkom, as a team are marching towards connecting lives with SMART devices, while representing the TECNO brand in Sri Lanka. We aim to connect our customers with extraordinary devices backed by excellent after-sales service,” commented Manjula Jayasinghe, General Manager- Gestetner-Telkom.
Through innovation, technological and artistic progression with a diversified product portfolio featuring smartphones and smart AIoT products, TECNO is committed to unlocking the best of contemporary technologies for progressive individuals across global emerging markets, serving consumers who are young at heart. For more information, please visit https://www.tecno-mobile.com/lk/
On paper, at least, Sri Lanka is one of the wealthiest countries in South Asia, ranked by the un on a par with much of eastern Europe in terms of development. Yet the country of 22m people is suffering severe food shortages, locked petrol pumps and power cuts lasting as long as 13 hours a day. The currency has lost nearly half its value against the dollar over the past two months. Foreign reserves stand at $50m, too little to cover even a day’s worth of imports and down from about $9bn in 2019. Last month Sri Lanka admitted it could no longer service its foreign debts. The country is broke.
Sri Lankans are furious. On May 9th protesters torched dozens of homes, most belonging to politicians, precipitating the resignation of Mahinda Rajapaksa, the once-beloved prime minister. Security forces evacuated him and his family to a naval base as a mob tried to storm his official residence. Vigilantes have set up checkpoints outside the country’s airports to prevent him and other officials from fleeing. A state of emergency is in force. The army has been ordered to shoot rioters and looters on sight.
How did it come to this? For an answer, look back to late 2019, when Sri Lanka was still picking itself up after a devastating set of terrorist attacks on Easter Sunday. Home-grown Islamists had targeted three churches and three luxury hotels, killing more than 250 people. Tourism, a big source of foreign exchange, took a hit, with arrivals falling from 244,000 the month before the attacks to 38,000 the month after.
It was against this backdrop that Sri Lankans chose as president a man known for an iron-fisted approach to security: Gotabaya Rajapaksa, who had brought to an end a 26-year civil war as head of the ministry of defence a decade earlier. Mr Rajapaksa, in turn, appointed as prime minister his older brother, Mahinda, who had been president from 2005 to 2015. The pair were seen as vigorous, can-do types, unlike the vacillators of the opposition. Their party won parliamentary elections by a landslide.
Untrammelled authority seems to have gone to the Rajapaksas’ heads. A two-thirds majority in parliament meant that they could have their way with the constitution—and they did, creating an executive presidency that granted Gota control over the appointment of ministers, judges and the heads of various nominally independent commissions. Many top jobs went to assorted brothers and nephews; others to retired or serving soldiers.
But even as the Rajapaksas appeared to be entrenching themselves in power, they were actually undermining their own authority through ill-conceived policies. They slashed taxes as the pandemic brought tourism to a screeching halt, which together clobbered the economy and severely reduced government revenue and precious inflows of foreign exchange. Downgrades from ratings agencies underlined the deteriorating economic picture and in effect closed the door to fresh borrowing abroad.
Instead of admitting their errors, the Rajapaksas pretended things were under control. They continued to defend the rupee and service Sri Lanka’s external debts of 44% of gdp, even as foreign reserves dwindled. A ban on imported fertiliser, to save dollars, was dressed up as a boost to organic farming—but had to be scrapped when crop yields plunged, threatening a further decline in exports. The war in Ukraine was the final straw, pushing up the prices of imported oil and food and prompting the government to resort to rationing for lack of foreign exchange.
The Rajapaksas and the country are now out of options. The government will have to slash spending and raise taxes, further eroding Sri Lankans’ standard of living even as inflation bites. The plunge in the rupee’s value will eventually boost tourism and other exports, bringing some desperately needed dollars. But Gota no longer has the credibility to negotiate with the imf for fresh loans to tide over the country until that point, nor the authority to impose painful austerity. Opposition politicians, meanwhile, have no desire to take responsibility for a mess of the Rajapaksas’ making or to associate themselves with the unpopular remedies to come. And no economic repairs are possible while bands of arsonists roam the capital.
Put the country first
To calm the mobs and pave the way for a government of national unity, Gota must go. But the opposition should put the people before politics, too, and take some responsibility for extricating Sri Lanka from its predicament. The outlook may be bleak, but voters will reward the politicians who find a way out of the present impasse. It was by ending a seemingly endless war, after all, that the Rajapaksas first won the popular devotion that they have now betrayed. ■
This article appeared in the Leaders section of the print edition under the headline “Gota go”
The selling price of the US dollar which was at Rs. 380 in commercial banks yesterday (12) morning has come down to Rs. 365 today (13).
With the appointment of Ranil Wickremesinghe as the new Prime Minister, the optimistic situation regarding political and economic stability seems to have contributed to the strengthening of the rupee.
