A power cut of 3 hours and 20 minutes will occur today (18) revealed the Public Utilities Commission of Sri Lanka (PUCSL).
No power cuts occurred during April 13,14 and 15 the New Year days and only a day time one-step power cut occurred on April 16 and 17.
However, the familiar two-step power cut will continue from today.
MIAP
International NGO Human Rights Watch has urged the International Monetary Fund (IMF) to ensure that effective measures to address governance issues and corruption are negotiated prior to the commencement of any new program in Sri Lanka and are implemented early in any program.
In a letter to IMF Managing Director Dr. Kristalina Georgieva, the human rights organization noted that as the experience of the 2016-19 program shows, reforms that are left for later are unlikely to be implemented.
Central bank independence was then a keystone of the Fund’s approach. However, the promised Central Bank Act was never adopted, finally being scrapped by the current government in June 2021, it added.
Human Rights Watch has also made some recommendations that should be incorporated in any IMF program in Sri Lanka to protect the rights, lives, and livelihoods of all Sri Lankans.
These recommendations are as follows
Ensure that social protection programs are adequately expanded to mitigate the cost of any adjustments. This includes assessing the impact of adjustments, setting adequate social spending floors as Performance Criteria, and appropriately defining floors.
Support higher social spending by the government, and require evaluations based on performance.
Urge policies to increase women’s access to employment by reducing barriers, including by providing state-funded maternity leave and access to affordable menstrual hygiene.
Implement progressive tax measures that do not further burden people living in poverty.
Implement any reduction or removal of subsidies in a progressive manner or with an adequate compensatory system to ensure affordability for low-income people in advance of reforms.
Human Rights Watch has documented that the Rajapaksa administration has aggressively repressed civil society by subjecting activists and nongovernmental organizations to intense surveillance and intimidation, reducing the ability of the public to hold the government to account.
President Gotabaya Rajapaksa was himself facing corruption charges related to his previous period as defense secretary at the time of his election in 2019, it added.
It has requested the IMF to put pressure on the government to abolish the 20th amendment to the constitution which gave unprecedented powers to the President who ha staken the law on to his hands to suppress mass protests and upheavals.
The 20th amendment to the Sri Lankan Constitution, adopted in 2020, undermined the independence of the judiciary, as well as key institutions including the National Audit Office and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), by giving the president unfettered control of appointments of senior judges and officials.
The amendment also removed the Auditor General’s constitutional authority to audit the Prime Minister’s Office and the Presidential Secretariat, and removed the constitutional status of the CIABOC, meaning it can be abolished by a simple majority in parliament.
These changes make it harder to hold government officials and others accountable for corruption and threaten the public’s ability to safely monitor their government’s spending decisions, Human Rights Watch claimed
The sudden interest rate hike excessively by the Central Bank would hit COVID-19 affected small and medium enterprises (SMEs) hard compelling them to declare bankruptcy under the present economic downturn, SME associations warned.
Banks and financial institutions have already activated all types of recovery actions, including parate execution and forced repossession of leased assets, they complained.
Around 1.3 million SMEs with 2.2 million employees contributing to more than 50 per cent of the country’s GDP are just surviving at present with the concessionary financial relief schemes and extensions of debt moratoriums granted by the Central Bank (CB).
At a time when these business enterprises face difficulties in servicing their loans taken from banks and finance companies and on expiry of the moratorium, the CB raised lending rates by 7 per cent recently.
The aim was to “stabilise the exchange rate” as the rupee depreciated by over 35 per cent in a month and tackle rising inflation due to shortages of essential commodities in economic disaster, CB sources revealed.
President of the National Trade Protection Council (NTPC) Mahendra Perera noted that SME’s used to pay interest rates for their borrowings from banks and financial institutions ranging from 14-18-20 per cent per annum and this will increase to 21- 25-27 per cent or more with the new increase.
These business enterprises are currently facing liquidity issues due to loss of revenue and difficulties in the importation of raw material in dollar crisis and rupee depreciation along with the decline in cash flow, loss of sales, he added.
The interest rate hike will lead to bankruptcy of SME’s as most of such enterprises have been closed down causing loss of jobs of workers.
He urged the CB to issue a directive to banks and financial institutions not to increase interest of their loans and extend the March 31 date of expiry of moratoriums considering present hardships faced by them.
When interest rates increase to a very high level too quickly, it can cause a chain reaction that affects the domestic economy creating a recession in some cases, economists said adding that this action was taken too late.
If interest rates are raised too quickly it is more of a risk than keeping it low for prolonged periods and the economy can grind to a halt, one economist said.
The problem of access to finance and the cost of borrowing are acute, he pointed out, emphasizing that small and medium scale firms with overdrafts will have higher costs because they must now pay more interest.
With the nation of Bangladesh poised to become an economic powerhouse in the South Asianregion, the Ceylon Chamber of Commerce recently hosted a meeting with a high-level delegation representing the Bangladesh Export Processing ZonesAuthority (BEPZA) aimed at enhancing trade relations between Sri Lanka and Bangladesh.
Chairman of the Ceylon Chamber of CommerceVish Govindasamy drew reference to the significant increase in bilateral trade volumes in 2020/21 between the two countries.
He noted that business promotion delegations such as that from BEPZA, contribute positively to the local chamber’s efforts to enhance bilateral trade and investment and explore the untapped potential for economic growth,
.ExecutiveChairman of BEPZA, Major General A.K.M. Ziaur Rahman welcomed Sri Lankan firms to explore investment opportunities in Bangladesh, highlighting attractive and comprehensive investment facilities, and a stable economic climate promising rapid growth.
Strategically Located as the geopolitical gateway to India and China offering access to millions of consumers and exports amounting to over $ 44 billion dollars in2021,
Bangladesh is one of the fastest growing economies in Asia, TanvirHossain, Executive Director – Investment Promotion, BEPZA, added.
BEPZA is the official government agency charged with promoting, attracting and facilitatingforeign investment in the EPZs, as well as managing the EPZs, thereby executing the Government of Bangladesh’s mandate to implement an ‘open door’ policy inorder to attract more foreign investment to the country.
With 38countries across Europe, Asia and North America invested in eight EPZs across the country, there are currently 454 enterprises in operation and 78 industries under implementation, contributing to over 17% ($6.64 billion) to national exports last year.
In addition to fiscal and non-fiscal incentives, investments in BEPZA also benefit from preferential market access with GSP facilities from 38 countries across the globe, an increasing number of bilateral treaties and duty free access
.Boosted by the presence of established global brands, the country is currently the largest exporter of denim to the EU market, second largest exporter of jute and eighth largest exporter of leather products, opportunities in the manufacture of diversified products such as luggage, furniture, LED products, camera lenses and automobile parts abound.
Sri Lanka’s private sector was well represented at the meeting, with companies in diverse industries ranging from renewable energy, warehousing and logistics to food processing, wellness and FMCG taking the opportunity to meet and further discuss investment opportunities with the BEPZA representatives.
The cash strapped crisis ridden Sri Lankan Government is seeking closer engagement with Algeria, which is the lead economy in North Africa, in keeping with the Government policy of further expanding ties with the African Region.
Accordingly, Foreign Ministry Level Virtual Bilateral Consultations with the People’s Democratic Republic of Algeria were held for the first time focused on strengthening political, economic, social and cultural ties between the two nations.
The two sides noted that the total trade last year stood USD 5.39 million and Sri Lanka’s exports to Algeria amounted to only USD 0.63 million while Sri Lanka’s imports from Algeria amounted to USD 4.76 million.
As a major exporter of petroleum and LP gas, the trade relations with Algeria have mainly been in the energy sector. However, potential to further increase exports particularly tea, spices, coconut products and apparel were explored.
A virtual meeting with the Chambers of Commerce of both countries is expected to take this process forward.
Recalling the long standing bilateral relations, the two sides agreed to celebrate the 50th anniversary of diplomatic relations in a fitting manner next year.
Algeria announced that it will host the next NAM Summit in Algiers in 2022 and recalled that both countries are founding members of the Non Aligned Movement and continue to work closely at the multilateral level.
The two countries expressed keen interest to focus bilateral cooperation in the environment and climate change, power & energy and tourism sectors. Further strengthening defence and counter terrorism cooperation were also discussed.
Cash strapped mgovernment has envisaged,closer engagement with Algeria which is the lead economy in North Africa is envisaged.
As a major exporter of petroleum and LP gas, the trade relations with Algeria have mainly been in the energy sector.
However, potential to further increase exports particularly tea, spices, coconut products and apparel were explored. A virtual meeting with the Chambers of Commerce of both countries is expected to take this process forward.
Recalling the long standing bilateral relations, the two sides agreed to celebrate the 50th anniversary of diplomatic relations in a fitting manner next year.
Algeria announced that it will host the next NAM Summit in Algiers in 2022 and recalled that both countries are founding members of the Non Aligned Movement and continue to work closely at the multilateral level.
The two countries expressed keen interest to focus bilateral cooperation in the environment and climate change, power & energy and tourism sectors. Further strengthening defence and counter terrorism cooperation were also discussed.
At a briefing at the Ministry of Foreign Affairs on 12 April 2022, Minister of Foreign Affairs Professor G. L. Peiris, Minister of Finance, M. U. M. Ali Sabry PC and the Governor of the Central Bank, Dr. Nandalal Weerasinghe informed donor nations of the current economic situation in the country.
The Diplomatic community was informed of the measures which are being put in place and preliminary arrangements for discussion with the International Monetary Fund next week.
The Ministers invited bridging finance by donor nations during the intervening period.
They responded to questions and participated in wide ranging discussions.
Foreign Secretary Admiral Prof. Jayanath Colombage was also associated with the briefing.
Ministry of Foreign Affairs
Colombo
17 April, 2022
Digital projections of anti-government slogans and designs were displayed on the Presidential Secretariat building in a historic event as the public protest demanding the stepping down of President Rajapaksa and the government continues for the ninth consecutive day today (17).
These projections were carefully designed via 3D Mapping matching the exact size and shape of the Presidential Secretariat building and projected at night, demonstrating the creativity of the protestors at the premises.
The projections were interrupted and weakened by the security officials, but will forever remain a direct blow in the head against the government as pictures of the event are circulating on Social Media, making it impossible to remove them.
Photos owned by: Thilina Kaluthotage
MIAP
Lanka Indian Oil Company (IOC) has declared another price surge on petrol and diesel.
Accordingly, a litre of petrol will be up by Rs. 35 and a litre of diesel by Rs. 75, effective from midnight today (17).
MIAP
We know the meaning of; Old Wine in a new bottle. That is someone is packaging current or old ideas and practices in a way which makes them appear to be modern/innovative, particularly with the intention of pretending that they are “new” or keeping them alive or making them look more attractive to audiences.
Both Nandalal and Siriwardana left the Central Bank with a lot heartache in 2021. Especially, Nandalal. He was over looked both by Ranil Wickremesinghe and later by Gotabaya Rajapakse for Governor. In fact at a meeting with the President during the height of the pandemic.
The President blasted the Central Bank in the presence of Nandalal for failing to come up with a viable plan for economic revival. To add to all this Dr PB Jayasundara made sure both Nanda and Siri packed their bags and took retirement. He was heard to criticize them both openly. For their rigidity and lack of ideas.
It is said however both made sure they looked after their pensions, but left with a heavy heart according to their colleagues. Both Siriwardana and Weerasinghe were criticized several times by the Bond Commission in their report for their inaction to stop the bad practices that had become part of the Central Bank ethos. Weerasinghe was effectively no 2 of the Central Bank..
Therefore Siri and Nanda are both equally responsible for the debt build up as much as Nivard Cabraal and Indrajith Coomaraswamy. Indrajith is now an advisor to the President.
The former Governor Cabraal several times alleged that the Yahapalana government borrowed unnecessarily. The current crisis he said was a result of excessive borrowing of the Central Bank in 2019. So when Weerasinghe was offered the job with the resignation of Cabraal it was a dream come true for Nandalal. He was spending his retirement with his family in Australia. His article on the state of the economy in the local media had got the attention of the government.
He knew Cabraal was on his way out. That an opportunity would arise. The man was jubilant according to sources when it was offered. Very few would have anyway taken the job. The social media campaign created anticipation. He had even saved India when he was seconded to the IMF, a post said. He was received at the Airport by the Airforce and whisked away in a Benz from the airport. All the TV channels showed him arriving. A social media campaign highlighted that Weerasinghe was a savior.
He even said the opposition supported him. But wanted independence. He was quick to criticize his former boss Cabraal’s policies. Several social media post have slowly begun to show up challenging Weerasinghe’s squeaky clean image and capability that he is trying to project on social media. Whilst Cabraal is seen as a villain.
The other members of the CBSL board were praised by Nandalal. They should both (Jayamaha and Jayawardena) resign. If they have an iota of decency. What the Central Bank has done pre and post Cabraal has led to a tale of utter despair. It is interminable pain to the public.
It is difficult to express in words the level of abject scarcity, desperation and hopelessness that people have fallen to. So bureaucrats sitting in their high offices must take note of the average man when they take decisions on behalf of the country as pointed out by Former Prime Minister Wickramasinghe.
Moreover they should stop passing the buck to their predecessors and focus on the serious job at hand. The honeymoon is over both for Siri and Nanda. There is no point criticizing Cabraal. We certainly are keeping eye on what’s going on and also those bond trading that happened over the years. Because bureaucrats must deliver or go home.
The country has no time left.
Adolf
Despite the presence of four-to-five hundred thousand protesters on the Galleface Ground against the government, the whole country today is one Galleface Ground, said Attorney-at-Law Manoj Nanayakkara, speaking to the briefing called in by the Lawyers of the Struggle Movement today (17).
Today, every city and village are birthplaces to ‘GotaGoGama,’ the Lawyer pointed out, adding that the upcoming week, therefore, will be highly critical leading to a transition, against which no political party of the Opposition can remain silent.
President Gotabaya Rajapaksa will never be able to return to the United States, nor will he be able to stay in Sri Lanka, should he choose to violate the human rights of the young protesters in this struggle and being prosecuted, he emphasised.
MIAP