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Kantale Sugar factory revives with US300 million SLI investment

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Sri Lanka’s over 30 year discarded Kantale Sugar factory and its land is set to be revived and restructured jointly by SLI Development Pte. Ltd, Singapore and its original investor M G Sugars Lanka (Pvt) Ltd under Built Operation and Transfer (BOT) agreement, Finance Ministry cabinet paper revealed.

According to this memorandum, this factory and land will be leased to the Singaporean company for ten years on the basis of granting 85 percent of shares to the investor and 15 percent to the government for an investment of US$ 300 million.

In the next shareholding ratio will be changed to 75 percent to 25 percent and keep on changing in accordance with s25 percent share reduction basis to the end of the BOT agreement.

The lease agreement will be signed by the M G Sugars Lanka, SLI Development and the treasury soon after the receiving of cabinet approval for this arrangement, Finance Ministry sources said adding that the Attorney General has given consent to go ahead with the project.

Conveying its protest to government authorities, Convenor of the Federation of National Organisations prominent Sinhala writer, poet Dr. Gunadasa Amarasekera noted that this was a pointblank handing over of the Kantale sugar factory and 20000 acres of fertile land to a Singapore company to set up Asia’s largest Ethanol production factory with the approval of the cabinet.

The new investment agreement to be signed will be to revive and restructure Kantale Sugar factory to process 4000 Tons of sugarcane cane per day and manufacture 72,000 MT sugar per year,production of ethanol , generation of electricity and dairy products, as per the approval which is to be granted by the Cabinet of Ministers.

Several previous attempts to restore the Kantale operation had failed while the action taken for the revival of the factory during the previous regime abruptly halted following a bribery scandal involving two senior government officials, including Chief of Staff of the then President Maithripala Sirisena.

They had allegedly blocked the transfer of machinery, scrap metal and other assets belonging to the Kantale sugar factory to a joint venture company that had signed a $ 100 million deal to revive the facility.

The investors planned to set up a state-of-the-art factory with world-renowned SLI experts Moussy Salem and Mendel Gluck spearheading the project.

The team consists of Booker Tate, Grupo TSK would handle industrial EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) along with Netafim-world leaders in irrigation technology and equipment, for the agricultural EPC and O&M, the company said .

Hogan Lovell together with financial advisers Fieldstone, have developed all contracts and financial models for the Kantale project, the company stated.

The company said: “The landmark project will welcome a 27.5 MW maximum capacity cogeneration plant from biomass, with an export of 10 MW to the National Grid.

This will produce 80,000 tons of direct consumption sugar per annum to the local market, resulting in foreign exchange savings of approximately US$50 million per annum in payments for imported sugar.

This project will offer progressive solutions to the economic development of the Trincomalee district region and wider rural economy.

Direct employment opportunities will see 3,500 local people salaried, and a further 3,000 farmer families will benefit.

To fulfill the proposed expansions, plans to train a cadre of skilled workers will be put in motion, and 10,000-15,000 indirect employment opportunities will be created nationwide.

The Kantale Sugar Factory, in the 1960’s was considered as the largest sugar production facility in Asia, providing about 10,000 direct and indirect job opportunities.

The factory complex also had luxury housing, sports club, shopping complex and social club which are now abandoned.

It was also running at a profit and from 1980 to 1986, the factory earned a Rs. 70 million profit.

However in 1993 the then UNP government handed it over to a private company which resulted in a closure by the end of 1999.

Public’s displeasure cannot be rectified by repression (VIDEO)

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Repression cannot rectify the people’s pain and displeasure, said Reverend Father Dr. Cyril Gamini, speaking to a briefing held on the arrest of Civil Activist Shehan Malaka today (14).

Suspicions and fears are raised on whether the country is heading towards a dictatorship, he emphasised.

“If there is an attempt to completely block democracy, destroy democracy, deprive the people of their rights and do what they want, then we have doubts as to whether there is an attempt to create such an environment and turn it into a dictatorship. Therefore, we call on all to protect this freedom and rights in this country. Where they are lost, we all need to stand up for our rights,” Rev. Fr. Gamini added.

Another Social Media activist summoned to CID

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Manorama Weerasinghe, a famous Social Media activist, has been issued a notice to appear before the Criminal Investigation Department (CID) on February 17.

This is reportedly on the purpose of collecting a statement with regard to an investigation on Social Media.

Social Media activists have been summoned to the CID on various occasions in the recent past and their statements have been collected. Shehan Malaka, another Social Media activist whose statement was recently recorded by the CID, was arrested today (14).

This alleged attempt to intimidate Social Media activists by the Police is seriously being criticised on Social Media.

MIAP

Sri Lanka: Support for Rights Defender: Targeting of Ambika Satkunanathan over European Parliament Testimony

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(New York, February 14, 2022) – The Sri Lankan government’s statement after a human rights lawyer, Ambika Satkunanathan, spoke before the European Parliament about the human rights situation in Sri Lanka amounts to harassment and intimidation, eight human rights groups including Human Rights Watch said today. The following is their statement:

JOINT NGO STATEMENT IN SOLIDARITY WITH SRI LANKAN HUMAN RIGHTS DEFENDER AMBIKA SATKUNANATHAN

We the undersigned human rights organizations, express our deep concern about the statement issued by the Sri Lankan Foreign Ministry on February 4, 2022, in which the government denounced testimony given by Ambika Satkunanathan, a leading human rights lawyer, to the European Parliament on January 27. The government statement clearly constitutes an act of harassment and intimidation. We condemn the Sri Lankan government’s tactics to intimidate human rights defenders, and express our full solidarity with Ms. Satkunanathan, a well-known, respected, and courageous human rights defender. Targeting her for providing accurate testimony about the human rights situation in Sri Lanka to the European Parliament is completely unacceptable, and sends a chilling message to all Sri Lankan civil society, especially those in the north and east, who are already operating under considerable duress under the current administration.

Sri Lanka’s international partners, including the European Union, should publicly condemn the Sri Lankan government’s statement and express solidarity with Ms. Satkunanathan, who has been targeted for her international engagement, and increase their efforts to engage with Sri Lankan civil society at large.

The Foreign Ministry’s statement contains numerous false claims in an attempt to disparage and delegitimize a distinguished human rights advocate, placing her at risk of physical danger in retribution for her brave work. The government’s claim that her testimony was “reminiscent of LTTE [Liberation Tigers of Tamil Eelam] propaganda that once stoked hatred among communities,” and that “such allegations need to be refuted in the interest of social harmony” is particularly insidious and dangerous.

The government’s statement mirrors its repeated practice of falsely equating human rights defenders and human rights advocacy with those pursuing “terrorism.” The statement’s language aligns these baseless allegations with vague and frequently abused provisions under the Prevention of Terrorism Act (PTA), exposing Ms. Satkunanathan to a heightened risk of threats, attacks, and persecution.

Ms. Satkunanathan was a commissioner of the National Human Rights Commission of Sri Lanka before that body’s independence was compromised under the current administration and led the first national study on Sri Lanka’s prisons. Prior to that, she was for many years a legal consultant to the Office of the United Nations High Commissioner for Human Rights. She is the author of an important recent report on abuses committed during the so-called “war on drugs.”

We are concerned that the government’s statement seeks to place the blame on human rights defenders if the European Union determines that Sri Lanka failed to meet its human rights commitments under GSP+, the preferential tariff system. The European Union should remind the Sri Lankan government that the responsibility to uphold its international human rights obligations rests with the government. The government’s treatment of human rights defenders reflects its lack of respect for international human rights law.

We support Ms. Satkunanathan’s testimony to the European Parliament, which accurately described a situation already reported by the United Nations and many domestic and international human rights organizations. The government’s response contains numerous false statements, including:

  • The government claims to be “engaged in long standing cooperation with the UN human rights mechanisms and the UN Human Rights Council.” On the contrary, in February 2020, soon after taking office, the government of President Gotabaya Rajapaksa withdrew Sri Lankan support from consensus resolutions of the council, repudiating commitments made by the previous government. Special Procedures mandate holders of the council issued a statement on February 5, 2021, noting that their recommendations, including on torture, the independence of the judiciary, arbitrary detention, enforced disappearances, minority rights, counterterrorism, freedom of religion or belief, and freedom of assembly and association, had been ignored.
     
  • The government claims to be “strengthen[ing] rule of law, access to justice and accountability.” However, President Rajapaksa campaigned on a platform of protecting “war heroes” from prosecution, and has appointed individuals implicated in war crimes to senior government posts. His presidential commission on “political victimization” has sought to interfere in judicial proceedings and block trials and investigations in human rights cases implicating the president’s associates and the president himself. The president pardoned Sunil Ratnayake, one of very few members of the armed forces ever convicted of human rights violations, who murdered eight Tamil civilians including children.
     
  • The government denies that civic space is shrinking, as Ms. Satkunanathan described in her testimony. Yet under the current government, many human rights defenders have said that they are subjected to continual government intimidation, intrusive surveillance, and attempts to block their access to funds. In her most recent update to the Human Rights Council, High Commissioner Michelle Bachelet wrote that, “surveillance, intimidation and judicial harassment of human rights defenders, journalists and families of the disappeared has not only continued, but has broadened to a wider spectrum of students, academics, medical professionals and religious leaders critical of government policies.” The UN Special Rapporteur on contemporary forms of slavery in his end-of-mission statement last December documented government intimidation of civil society and a “shrinking civic space.”
     
  • The government claims there is no “concrete evidence of discrimination against minorities.” In fact, for nearly a year the government banned the burial of people said to have died with Covid-19, causing immense distress to the Muslim community without any medical justification in what is only but one example of discrimination against ethnic and religious minorities. Such burials are now permitted only at a single remote site. In January 2021, High Commissioner Bachelet found that, “Tamil and Muslim minorities are being increasingly marginalized and excluded in statements about the national vision and Government policy… Sri Lanka’s Muslim community is increasingly scapegoated.” The high commissioner’s findings are in line with reports by Amnesty International, Human Rights Watch, and others that the PTA is used almost exclusively against members of the Tamil and Muslim communities. The government continues to deny efforts to commemorate war victims belonging to the Tamil community.
     
  • The government denies Ms. Satkunanathan’s description of alleged extrajudicial killings committed in the context of Sri Lanka’s “war on drugs.” However, these abuses are widely documented. In September, High Commissioner Bachelet said, “I am deeply concerned about further deaths in police custody, and in the context of police encounters with alleged drug criminal gangs, as well as continuing reports of torture and ill-treatment by law enforcement officials.”

The Sri Lankan government’s statement attacking Ambika Satkunanathan for her testimony to the European Parliament’s Sub-Committee on Human Rights exemplifies threats faced by human rights defenders, particularly when they engage with foreign and international forums, and it further shows the government’s refusal to address the ongoing serious human rights violations taking place in the country. Instead of trying to silence those who seek to defend human rights, the government should give serious consideration to their input and contributions, and take urgent action to ensure that they can work in a safe environment without fear of reprisals.

Signatory Organizations:

Amnesty International

Asian Forum for Human Rights and Development (FORUM-ASIA)

FIDH, in the framework of the Observatory for the Protection of Human Rights Defenders

Front Line Defenders

Human Rights Watch

International Commission of Jurists

International Movement Against All Forms of Discrimination and Racism (IMADR)

World Organisation Against Torture (OMCT), in the framework of the Observatory for the Protection of Human Rights Defenders.

For more Human Rights Watch reporting on Sri Lanka, please visit:
https://www.hrw.org/asia/sri-lanka

Omicron already prevalent in Sri Lanka. Masking without vaccine pointless: Health Authorities

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Retention at home by wearing face masks without being administered with the vaccine against Covid-19 would be a pointless measure against the pandemic, said Specialist Dr. Anthony Mendis of the Intensive Care Unit of the National Hospital of Colombo, speaking to a briefing held at the Health Promotion Bureau today (14).

This is mainly due to the omicron variant of Covid being already prevalent throughout the country, he revealed, urging the public that the vaccination, therefore, would be essential for protection.

Despite an awareness of this gravity, a significant number of people who have not received any dose of the vaccine are admitted to the ICUs due to being infected with the virus, he went on, adding that those who collect one or two doses of the vaccine are recovering and leaving the hospital.

Despite the use of face masks being effective against earlier variants of the virus, the omicron variant cannot be avoided by the mere use of face masks and therefore, people should be fully vaccinated as soon as possible, Dr. Mendis added.

MIAP

PBs failed economic experiment has cost the country dearly

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The respected Central Banker W Wijewardana says today in an article written by him to the Financial Times that Rajapaksa administration had made a serious policy error when it announced an unsolicited, attractive tax concession to income taxpayers and value-added taxpayers.

When this was announced in the President’s election manifesto in November, 2019, I wrote in this series in December 2019 that the new Government should not implement it because it will make a serious dent on the revenue base of the Government (available at: https://www.ft.lk/columns/Tax- cuts-Control-the-damage-before-the-unconventional-stimulus- backfires/4-691207). Further he says In this article, I argued that the estimated revenue loss would be around Rs. 650-80 billion or 4% of GDP which could not be afforded by the Government at that time.

This was before the outbreak of the COVID-19 pandemic. The actual loss compared to the actual tax revenue of 2019 was Rs. 516 billion. However, had the old tax regime remained in force and the Inland Revenue had realised the targeted revenue of 13% of GDP, the loss in the potential revenue by the Government in 2020 had amounted to Rs. 600 billion. This is 4% of GDP. The potential revenue loss during 2021, 2022, and 2023 will also be around 4%

of GDP and this is a serious dent in the revenue base of the Government”. The deposed self anointed economic guru PB Jayasundara was the architect of this plan. He listened to no one . Given that the President knew nothing of economics he left it to Jayasundara to do as he wanted.

Jayasundara appointed a CBSL Governor well passed his prime and a Secretary to the Finance ministry who played a key role in the Yahapalana Government, RS Attygalle. His favorites like Dr Keneth de Silva another self proclaimed economist was appointed as Chairman of the Policy Consultative Committee of the Central Bank. Jayasundara forced out respected Economist Dr Dushini Weerakoon and Veteran Banket Nihal Fonseka from the CBSL board.

Jayasundara went a step further by removing directors and chairmen of banks to install his cronies. It is alleged that he appointed an ex Finance ministry official and her husband both to bank boards. Another lawyer practicing with the ex official in the practice to another Bank. They were also given work in the Portcity according to the print media. Today Sri Lanka is facing the biggest food crisis again due to failed experiment of the President and Jayasundara. Clearly according to sources Jayasundara was the architect and another ploy to save USD. It was certainly penny wise, pound foolish.

Today there is no point in putting the blame on Covid 19. When stupid economic decisions were made against all advice. As Wijewardana points out “Advice was not heeded to, and the way-out for the Government was to resort to the banking sector for financing the budget. Accordingly, during 2020 and 2021, the Government had borrowed from the banking sector, that is, the Central Bank and commercial banks, a net sum of Rs. 3,500 billion marking an increase by 125%.

This is a colossal sum. Accordingly, the total money stock in the country had expanded during this period by Rs. 3,023 billion or 40%. The unintended consequence of this extraordinary money growth was the building of inflationary pressure in the domestic economy, on one side, and depletion of foreign reserves putting pressure for the rupee to depreciate in the market, on the other”. Today food inflation is over 25%, the Rupees unofficial rate is 250+. Sri Lanka LCs are disregarded. Our ratings are junk. Creating all this mayhem Jayasundara has officially retired to write a book. But unofficially it is said Jayasundara is mentoring the

Finance minister. The opposition should demand an impartial inquiry into this negligence and mismanagement of the economy by Jayasundara and his team.

This is public money and public livelihoods, not Jayasundara’s private wealth to experiment. Those who are found guilty for this humongous economic crisis. Should be severely reprimanded now or later. Sri Lanka has today become a global beggar . Because of excesses of pig headed bureaucrats and politicians. What is the JVP, UNP and SJB waiting for?

Adolf

Foreign Minister says something special will happen on March 31

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A visit to India may have to be made within the next two weeks for the finalisation of the agreements on the reception of a fiscal facility of US$ 2.4 billion from India, said Foreign Minister G.L. Peiris, speaking to a briefing held in the Sri Lanka Podujana Peramuna (SLPP) head office today (14).

Sri Lanka will receive this fiscal facility for the purchase of food and medicine, as a result of Finance Minister Basil Rajapaksa’s visit to India, he revealed.

The Foreign Minister added that something special is about to happen on March 31.

“We hope that India’s Foreign Minister will visit Sri Lanka from March 18 to 20. Also, a very important event will take place on March 31. The INSTEC Summit is set to be held in Colombo. It is an organisation consisting of seven countries. This organisation is currently chaired by Sri Lanka. Leaders of all seven countries have cordially invited us to attend this state leaders’ event in Colombo.

The 49th session of the Geneva Human Rights Council begins on February 28. I am submitting a written report on Sri Lanka to the High Commissioner for Human Rights, Michelle Bachelet. This report will be discussed on March 03. We are attending this Geneva session with great confidence and hope that justice will be done. We are always ready to work with the international community who work in a friendly manner with Sri Lanka. It is by working in that style that these problems can be solved. This is the message that we hope to deliver at the 49th Session.”

MIAP

CID arrests Social Activist Shehan Malaka

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The Criminal Investigation Department (CID) has arrested civil activist Shehan Malaka on the instructions of the Attorney General.

His arrest is reportedly involved with a statement he had made on the Easter Sunday Massacre.

Malaka was very vocal about the genocide on recent occasions.

MIAP

Petrol Rs. 192. Diesel Rs. 169. CEYPETCO to hand over proposal on fuel price hike to Energy Minister

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The proposal soaring fuel prices in the objective of minimising losses will be handed over to Energy Minister Udaya Gammanpila today (14), revealed the Ceylon Petroleum Corporation (CEYPETCO).

As of now, the price of one litre of petrol is Rs. 177 and the price of one litre of diesel is Rs. 121, but the cost of one litre of imported and refined petrol is Rs. 192 and diesel of the name nature, Rs. 169. Accordingly, the CEYPETCO is incurring a loss of Rs. 15.68 per litre of petrol and Rs. 48.30 per litre of diesel, it added.

The proposal minimising the loss by soaring the fuel price was handed over to the Finance Ministry on a previous occasion.

The fuel price was last soared by the CEYPETCO on December 20, 2021, after which Lanka Indian Oil surged the prices of petrol and diesel again. The CEYPETCO viewed that it should at least increase the prices in compliance with the IOC’s price hike.

MIAP

Two consultants with extraordinary pay package to be appointed to CEB

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Two consultants are set to be appointed to the Ceylon Electricity Board (CEB) as per the approval of the Board of Directors.

These consultants, former Additional Secretary of the Power Ministry Susantha Perera and former General Manager of the CEB M.R. Ranatunga, are to be appointed on the instructions of Power Minister Gamini Lokuge, subject to a remuneration of over Rs. 01 million with allowances each.

Top officials of the CEB have been going on public record over the years stating that the state-run body is incurring huge losses and is compelled to pay billions of rupees to the Ceylon Petroleum Corporation for fuel purchased for power generation.

It is in this backdrop are these two consultants subject to an extraordinary pay package to be appointed to the CEB.

MIAP