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Nimal Siripala de Silva collects an enjoining order

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An enjoining order has been issued preventing the removal of Minister Nimal Siripala de Silva from the posts of the Sri Lanka Freedom Party.

The enjoining order was issued after considering a petition filed by the Minister before the Colombo District Court.

Nimal Siripala de Silva pointed out in his petition that neither the President nor the General Secretary of the SLFP nor the Central Committee has the power to remove him from office in accordance with the party constitution.

After considering the facts, the court issued an enjoining order on the removal of Nimal Siripala de Silva from the party posts and on the officials including the SLFP chairman.

Johnston files a petition seeking an injunction restraining his arrest

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Former Minister Johnston Fernando has filed a petition in the Court of Appeal seeking an injunction restraining his arrest.

He has been named as a suspect in the attacks in Minagogama and Gotagogama and has requested the CID to issue a restraining order against him as his arrest is illegal.

Although police say that two teams of CID officers have been deployed to arrest Johnston Fernando, the CID has not been able to arrest him for several days.

Dhammika Perera responds to the reports on him entering the cabinet

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There is a debate in the society as to whether businessman Dhammika Perera will be appointed as a Cabinet Minister.

This was stated by him on the program ‘Salakuna’ telecast on Hiru TV yesterday (06).

“We are always ready to help in these difficult times. Now I have created DP Education. Not only that, in vocational training we are preparing 21 courses to help people learn and live. We have teamed up with Fonterra to increase dairy production. I’m not just like those other people, I know people get in trouble, if I can help I’ll help and recover it all. You know, 2% of hospitals in Sri Lanka have beds donated by me. But I did not want to put my name on them

Question: Then should Dhammika Perera enter the cabinet to put an end to this issue?

“It is up to the government to decide. But the solution to this problem, as I said, is to build a 100-dollar roadmap and implement the roadmap, show the cash flow and take out loans. There is no other option for this”

Sri Lanka seeks multilateral donor agency support for tourism revival

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Sri Lanka’s tourism authorities plan to approach multilateral donor agencies, including the Asian Development Bank (ADB) and World Bank (WB), to obtain financial assistance for the crisis-hit tourism industry.

Tourism and Lands Minister Harin Fernando revealed that the government is considering approaching ADB to obtain financial assistance for the tourism industry, based on a proposal submitted by the Sri Lanka Association of Inbound Tour Operators (SLAITO).

The Asian Devlopment Bank has assured assistance in the efforts to revive the tourism sector in Sri Lanka and the development of human capital, which has suffered a setback due to the Covid-19 pandemic.

The ADB has provided US $ 750 million as concessional loans last year while  loans worth US $ 2 billion would be allocated for operational projects this year. Part of this allocation of $ 2 billion could be diverted to touris industry revival following negotiations with the bank .

ADB is preparing a new country partnership strategy for Sri Lanka to support its National Policy Framework and medium-term development targets.

The  World Bank under its International  Development Agency  loan scheme will support  Sri lanka Tourism to strengthen the institutional framework for the Tourism Sector to facilitate environmentally and socially sound investments, in particular in the Eastern regions of Sri Lanka. 

The project will provide technical assistance and funding to all institutions including the Ministry of Tourism (MoT); Sri Lanka Tourism Development Authority (SLTDA), Sri Lanka Tourism Promotion Bureau (SLTPB), Sri Lanka Institute of Tourism and Hotel Management (SLITHM) and Sri Lanka Conventions Bureau (SLCB), which will improve the overall efficiency and efficacy of these institutions.

The World Bank said it is currently repurposing resources from previously approved projects to help the government with some essential medicines, temporary cash transfers for poor and vulnerable households, school meals for children of vulnerable families, and support for farmers and small businesses.

 Sri Lanka Association of Inbound Tour Operators (SLAITO) has already submitteda prposal to revive tourism industry indicating the urgency to restructure the bank  loan moratorium given to the industry.  

As of now, the loan moratorium given to the tourism industry is over Rs.500 billion, significantly up from Rs.200 billion in 2020. 

The moratorium, which was originally granted following the Easter Sunday attacks, is set to expire on June 30 2020 . With the current economic and political crises and effects of the Ukraine-Russia war, Sri Lanka’s tourism industry has yet again entered into a crisis period. 

“The SLAITO has come up with a good proposal, where we can go to ADB to seek assistance. But, for that we need to get the IMF programme implemented in the country; it will take a minimum of two to three months,” Tourism Minister said. 

The SLAITO and The Hotels Association of Sri Lanka (THASL) have already requested for an extension to the moratorium. Further, interest waivers and a debt restructuring programme have also been proposed.

Another two MPs to resign along with Basil ?

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LNW previously reported that Basil Rajapaksa, the National Organizer of the SLPP, is due to resign from his post as a Member of Parliament.

Sources say that along with him, two other MPs with dual citizenship are preparing to resign.

Sources further said that this will be done in line with the 21st amendment to the constitution and the final decision in this regard will be announced in the next few days.

There is talk in the political arena that the resignation will be a more politically advanced and sharp and effective approach, especially in the face of the opposition’s attack on Basil Rajapaksa, who is the only obstacle to the 21st Amendment.

Detention of an Airbus aircraft belonging to Russian Aeroflot Airlines…

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The problem caused by the detention of an Airbus aircraft belonging to Russian Aeroflot Airlines from leaving Sri Lanka has been resolved to some extent.

Following a complaint by Celestial Aviation Trading Ltd. based in Ireland, the Colombo Commercial High Court issued an injunction restraining the aircraft from leaving the country on June 2 and suspending it on June 6 following a series of heated incidents.

There are a lot of confusing points in this whole case.

However, the source of this problem is a legal action taken on behalf of a client by a well-known law firm in Sri Lanka. This eventually led to a diplomatic rift between Sri Lanka and Russia.

The fiscal officer of the Colombo Commercial High Court had gone to the Bandaranaike International Airport in Katunayake with an order to prevent the flight from leaving the country. The flight attendant at the Katunayake Bandaranaike International Airport is a person who has dual citizenship. When the order was brought to him he had said that he was waiting for it.

By June 3, the issue of the aircraft began to flare up at the diplomatic and political level, with the Colombo Commercial High Court Judge stating that he had not issued an enjoining order. However, on the day before yesterday (06) the judge issued another order suspending the enjoining order which is said to be not issued by him.

In the end, however, the burden is falling on the shoulders of two lawyers from a well-known law firm and the fiscal of the Colombo Commercial High Court. The work of the fiscal was also suspended yesterday (07) afternoon. It was reported that the Attorney General was preparing to file a case against the two lawyers and Fiscal Officer.

Nandalal Weerasinghe denies reports that there is a conflict between him and the PM

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The Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe has vehemently denied media and social media reports that there is a conflict between him and the Prime Minister.

Accordingly, he has stated that he has a cordial relationship with the Prime Minister Ranil Wickremesinghe and that he will always work together to revive the country’s economy.

The Central Bank of Sri Lanka has stated this on its official Twitter account.

An announcement from the Litro Gas…

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Litro Gas says it will not be distributing domestic gas cylinders today (08).

Accordingly, the company is requesting the public not to wait in queues as the gas distribution will resume in a few days.

Colombo Port City investors to get 40-year tax concessions

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Crisis-hit Sri Lanka has decided to give special 40-year tax relief for Chinese-built Colombo Port city to attract potential investors as the island nation’s largest foreign direct investment failed to attract investments after the much-touted project opened for nearly one year, a senior minister said on Tuesday.

Also with the Sri Lankan government desperately trying to secure long-term IMF funding to recover from the complete bankruptcy, the future of the much-touted Chinese funded Colombo Port City project to build an artificial 665-acre island to set up an international financial hub also hangs in balance.

The USD 1.4-billion Colombo Port City project, expected to play a key role in China’s ambitious “Maritime Silk Road” project in India’s backyard, is said to be the single-largest private sector development in Sri Lanka.

Investors at the Colombo Port City will get 40-year tax concessions, Minister Bandula Gunawardana saidon Tuesday .

The Cabinet Spokesman said that the Cabinet had decided to offer the concessions to draw more investments to the Port City.He noted  that in a competitive world other countries are offering attractive concessions to draw investors.

The Minister said that drawing investments has become difficult owing to the current global crisis. Gunawardana disclosed  that Sri Lanka needs to offer more attractive packages for investors.

As a result, the Cabinet approved a proposal to offer 40-year tax concessions for investments at the Colombo Port City. Gunawardana said that if such concessions draw more foreign investors it will help address the dollar crisis in Sri Lanka.

Sri Lanka is struggling to cope with a debilitating economic crisis with inflation soaring, food and fuel shortages, and fears of a sovereign default looming on the horizon.

The belief is that the project will transform Sri Lanka’s tourism-and-tea economy into a thriving, multi-services one. And it is an expensive dream, especially so for a country in the grip of unprecedented economic turmoil.

The project is estimated to cost $ 14 billion, largely funded by potential investors who will buy into the idea of the financial hub and set up shop there. For starters though, China has invested $ 1.4 billion to help PCC reclaim 269 hectares (ha) of land on the Indian Ocean. In exchange, China has got about 116 ha of the land there on a 99-year lease.

PCC is a public-private partnership project between the Sri Lankan Government and China Harbour Engineering Company (CHEC) Port City Colombo (Pvt.) Ltd, which is a subsidiary of China’s state-run infrastructure firm, China Communications Construction Company (CCCC), a company that is leading President Xi Jinping’s Belt and Road Initiative (BRI).

The move comes even as the economic crisis has pushed well-heeled Sri Lankans to take to some of the upmarket streets to protest against the Rajapaksa brothers — President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa — nearly daily.

That still doesn’t explain the extent of the Government’s belief in the project.Even as China’s shadow looms large over the project, the Sri Lankan Government is keen to see northern neighbour India investing in the city in a substantial way.

 This is despite awareness within the Rajapaksa Government of the current border tensions between India and China.

On its part, India is apprehensive of the project. New Delhi believes the city is part of President Xi’s BRI, and has thus chosen not to make any public statement on the project expressing its “discontent and displeasure”, a top-level source said. .

PCC is expected to be fully operational in the next 25 years, though Phase 1 of the mega project will be completed by 2027, according to the Sri Lankan authorities.

UN appeals for Sri Lanka humanitarian assistance to avert hunger                         

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The United Nations (UN) is to launch a worldwide public appeal for Sri Lanka humanitarian assistance on the 9th of June considering the country’s food insecurity and imeding starvation of the people.

The country’s political turmoil and economic crisis have brought about a catastrophic food shortage triggered due to unscientific ill adviced arrogant decisions  in cluding the ban on chemical fertilizer  to , with the nation’s 21 million residents now forced to pay triple for basics like rice, sugar, lentils and milk powder.

Over 500000 citisens , meanwhile, were pushed into poverty in the country over the past two years.

Under these circumsatnaces shedding some light to the issue  ,Prime Minister Ranil Wickremesinghe said that the UN will seek support to provide humanitarian assistance to Sri Lanka.

Through this project, they plan to provide $48 million over a four-month period to the food, agriculture and health sectors, the Prime Minister said.

He also said that discussions were held with representatives of international organizations such as the United Nations, the United Nations Food and Agriculture Organization, the World Food Program, the United Nations Development Program and the World Health Organization.

The Prime Minister said that many representatives of these countries and international organizations have agreed to support Sri Lanka during this difficult time.

He also called on the International Monetary Fund (IMF) to hold a conference to help unite Sri Lanka’s lending partners.

The Prime Minister said that holding such a conference under the leadership of India, China and Japan will be a great strength to Sri Lanka. 

A report by the Food and Agriculture Organization of the United Nations & the World Food Program has revealed that Sri Lanka will experience a further deterioration of food security over the next few months.

“The domestic agricultural production and rising international prices, compounded by the ongoing economic crisis, are expected to increase acute food shortages and price inflation which in turn are likely to result in a further deterioration of food security over the next months,” it added.

The FAO & WFP said that the country’s current account deficit has widened while its foreign exchange reserves have dwindled, resulting in a dramatic currency devaluation, rising food prices and food shortages.

The report in addition noted that the current economic crisis is increasingly affecting unemployment, and household incomes, complicating access to essential items.

Rising costs of food, fuel and imported commodities combined with supply chain disruptions and a weakening exchange rate are expected to drive inflation higher in 2022, while stressing that availability of food in the outlook period is likely to decrease.

The report went on to note that the harvest of the country’s main staple, “Maha” paddy crop, is estimated at a below-average level, mainly due to a ban on the import of chemical fertilizers and pesticides imposed by the authorities between April and November 2021.

Therefore, Sri Lanka will increasingly rely on imports to cover domestic needs, but the ability to purchase imported supplies will be constrained by a further depreciation of the local currency.

Reduced income and increased food prices affect households’ ability to afford sufficient and adequate food, said the report.

The Food and Agriculture Organization of the United Nations & the World Food Program has recommended that Sri Lanka seek multilateral and bilateral aid to import and provide chemical fertilizers along with organic fertilizers for the summer growing season and agricultural inputs such as vegetable seeds to vulnerable smallholder farmers.

It also recommended to supply high-nutrient animal feed and veterinary health kits to livestock owners including those who have cattle and poultry to mitigate the impacts of the feed shortage from the economic crisis.

The FAO also recommended providing unconditional cash to also support farmers with green gram production as a mid-season short-cycle crop to support food production. 

If feasible, conduct cash-for-work activities to improve paddy storage and community infrastructure to support daily wage earners and labourers.