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Sri Lankans to suffer in Four Hour Power Cut

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Sri Lankans are to face a four hour power cut daily as a result of fuel scarcity and the drop in water level of hydropower reservoirs in the country, Ceylon Electricity Board (CEB) Engineers Union warned.

The CEB currently possessed 3000 metric tonnes of diesel sufficient for two or three days to generate electricity and furnace oil adequate for 22 days to run generators , president of the CEB Engineers Union Saumya Kumarawadu  disclosed.    

Accordingly the electricity board is compelled to reduce the power demand by enforcing power cuts for longer hours after three days’ time   to maintain the balance in the grid system, he divulged. 

Hydropower generation will also have to be curtailed; the hydroserviour water is being managed for irrigation purposes in agriculture, for drinking and environmental conservation activities, he added. 

CEB Engineer Kumarawadu noted the delay in the construction of new power plants, cancellation of power projects and the lack of power plants for emergency use.

Power Minister Gamini Lokuge noted there will be no power cuts until Tuesday18 as the Ceylon Petroleum Corporation (CPC) has agreed to supply 3,000 metric tons of furnace oil to the CEB.

It has already received 3,000 metric tons of fuel for the Kelanitissa power plant; he said adding that the ministry will hold discussions with the CPC to obtain furnace oil sufficient till Saturday 22.  

He disclosed that  in the wake of the shutdown of a generator at the Norochcholai power plant, the national grid has lost 300 megawatts affecting the uninterrupted power and the problem has become worse due to an unexpected technical fault at the Kelanitissa power station .

Minister Lokuge claimed that, hydropower generation has also been affected due to drop in water level at hydropower reservoirs after allocating the required capacity for irrigation and drinking water and also around 35 percent of the overall capacity of the reservoirs is set apart for power generation.

The Ceylon Petroleum Corporation (CPC) is to deliver urgently required 1,500 MT of diesel to the Ceylon Electricity Board (CEB) daily enabling it to operate its generators and avoid enforcing power cuts.

However the CEB will have to provide US dollars to the CPC if it requires fuel continuously, Minister of Energy Udaya Gammanpila said.“in the wake of  the prevailing dollar crisis in the country, the CPC had to face severe difficulties to find  $400 million every month, for the supply of fuel stocks required for transportation and other industries,”he added

Explainer: Sri Lanka on the edge as debt burden mounts

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By Uditha Jayasinghe

COLOMBO, Jan 17 (Reuters) – Hit hard by the COVID-19 pandemic, Sri Lanka is facing its most serious financial crisis in years, raising doubts about its ability to pay its creditors.

On Tuesday, the island nation will repay $500 million towards an international sovereign bond, the first tranche of a total of $4.5 billion that it needs to pay back this year, to avoid the first default in its history. read more

Here are the key details about Sri Lanka’s mounting debt problems.

DEBT PROFILE

Sri Lanka, through repeated cycles of borrowing since 2007, has piled up $11.8 billion worth of debt through sovereign bonds (ISB), which makes up the largest part – or 36.4% – of its external debt.

Repeated cycles of borrowing from capital markets, including the International Sovereign Bonds, have made them the largest source of foreign funding for Sri Lanka.
Repeated cycles of borrowing from capital markets, including the International Sovereign Bonds, have made them the largest source of foreign funding for Sri Lanka.

The Asian Development Bank (ADB) is in second place with a 14.3% share, having lent $4.6 billion. Japan is at 10.9% and China at 10.8%, with each having lent about $3.5 billion each.

The rest of the debt is owned by countries such as India and international agencies including the World Bank and United Nations.

CHINESE LOANS

China has lent billions of dollars to Sri Lanka, partly under its Belt and Road Initiative (BRI), over the past decade for infrastructure projects including highways, ports, an airport and a coal power plant.

Critics say the funds have been used for white elephant projects with low returns. China rejects that criticism.

Sri Lanka has asked China to restructure its debt repayments to help navigate the financial crisis.

GOVERNMENT FACES MULTIPLE CHALLENGES

The government is struggling to tame retail inflation, which is running at a decade-high, amid surging commodity prices. It is also struggling to meet a fiscal deficit target of 8.9% of gross domestic product.

Since November, Moody’s, Fitch and Standard & Poor’s ratings agencies have all downgraded Sri Lanka on debt default worries. Central bank governor Ajith Nivard Cabraal has said the country will meet all its debt repayments in 2022.

SOME SAY RESTRUCTURE, DON’T REPAY

Some experts believe Sri Lanka should restructure its debt and establish a three-year repayment structure.

Doing so would save precious dollars and lessen the burden on Sri Lankan citizens who are facing shortages of imported goods such as milk powder, gas and fuel.

“Sri Lanka is unreasonably committed to repaying its debt. It is more prudent to press pause on debt repayment and take care of critical economic needs,” Verité Research Executive Director and Economist Dr. Nishan de Mel told Reuters.

REBUILDING OF FOREX RESERVES

Fitch estimates the Sri Lankan central bank will also need to arrange for $2.4 billion to help state-owned and private firms in the country honour the debt obligations they have in 2022, over and above the $4.5 billion central government debt.

The country also needs around $20 billion for essential imports such as fuel, food and intermediate goods for exports.

Reserves have been at a critical level for months but grew to $3.1 billion at the end of December boosted by a $1.5 billion yuan currency swap from China.

REUTERS

Anandasangaree tests positive for Covid-19

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Leader of the Tamil United Liberation Front V. Anandasangaree has tested positive for Covid-19, as confirmed upon a rapid antigen test conducted yesterday (16).

Anandasangaree is currently receiving treatment at a hospital in Jaffna. Some of his family members have also contracted the virus, according to reports.

Following his status, the Tamil United Liberation Front office in Jaffna has been declared for isolation.

MIAP

Suspected Drone Attacks Caused Explosion In Abu Dhabi: UAE

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Abu Dhabi police said three fuel tankers had exploded in the industrial Musaffah area near storage facilities of oil firm ADNOC and that a fire had broken out at a construction site at Abu Dhabi International Airport.

Yemen’s Iran-aligned Houthi movement said on Monday it had carried out an attack on the United Arab Emirates after authorities in the Gulf state reported two fires in the capital Abu Dhabi that were possibly caused by drones.

“Initial investigations found parts of a small plane that could possibly be a drone at both sites that could have caused the explosion and the fire,” the police said in a statement on state news agency WAM.

There was no “significant damage” from the incidents and a full investigation has been launched, the statement added.

NDTV

Veteran Singer Neela Wickremasinghe passes away

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Veteran Singer Neela Wickremasinghe has passed away at the age of 71.

Her demise has been confirmed today (17) in Milan, Italy, due to a heart attack.

Mrs. Wickremasinghe was recently appointed as the Consul General for Milan, Italy.

MIAP

Foreign remittances further declined – dollar crisis mounts

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Foreign remittances have reportedly declined by US$ 1600 million in comparison of the values of 2020 and 2021.

Sri Lankans living overseas have remitted US$ 7,100 million in 2020, but only US$ 5,400 million in 2021.

Sri Lanka received US$ 812 million in December, 2020 but the figure dropped to US$ 325 million in December, 2021.

Nevertheless, dollar inflows indicate a slight rise in December compared to November last year.

The Central Bank of Sri Lanka (CBSL) also decided to set an allowance of Rs. 10 per dollar to encourage Sri Lankans abroad to remit monies. Despite the CBSL’s campaigning on the offer, no significant improvement has seemingly been made.

Recent reports also claimed that Sri Lankans living overseas remit dollars through various channels, including brokers, without trusting the banks. The Governor of the CBSL commented that the amount of dollars remitted via such informal channels is only a small percentage, making no effect.

MIAP

Government’s decision to import rice has nothing to do with any shortage: Trade Minister

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The government’s decision to import rice has nothing to do with any shortcoming of rice production in the country, said Trade Minister Bandula Gunawardena.

Rice is being imported in a move to defeat the mafia in rice production aided by certain mill owners in Polonnaruwa who purchase rice stocks from the farmer and sell at their own discretion, Gunawardena said.

These mill owners have planned to soar the price of rice up to Rs. 300, which must never be allowed to happen, he added.

The Trade Minister further said that rice had been imported even during the tenure of the Good Governance Regime, when there were no such crises.

600,000 metric tonnes of rice was imported in 2014, 286,000 metric tonnes in 2015, 26,000 metric tonnes in 2016, 745,000 metric tonnes in 2017, 249,000 metric tonnes in 2018 and 16,000 metric tonnes in 2020 under the present regime, Gunawardena revealed, adding that the amount, in comparison, would be very small.

Those who had imported millions of tonnes of rice back then are spreading false information against the government’s objective of relieving the public and saving them from the mafiamen, he noted.

MIAP

Power crisis: Fuel sufficient for three days only, trying to seek IOC’s help, says Lokuge (VIDEO)

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The fuel available for power generation is sufficient for only three days and therefore, attempts will be made to obtain fuel from the Indian Oil Corporation (IOC) Company, Power Minister Gamini Lokuge said, speaking to media today (17)

Accordingly, instructions have been given to the Chairman of the Ceylon Electricity Board (CEB) to hold discussions with the IOC in this regard, the Minister revealed, adding that he too will take participation in this discussion, if necessary.

Fuel has to be located for an uninterrupted supply of power until January 22, he added, pointing out that maximum efforts will be put to provide an uninterrupted supply.

MIAP

New Parliament session to commence tomorrow – no parades, gun-salutes

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The second session of the 09th Parliament of Sri Lanka is due to commence tomorrow (18) morning under the patronage of President Gotabaya Rajapaksa.

The President is due to table the Policy Manifesto of the government in Parliament at about 10 am tomorrow.

There will be no parades and gun-salutes in commencement of the new Parliament session as per the instructions of the President. The opening, accordingly, will be carried out in very simple terms, said the Parliament authorities.

Only a few cultural events have been organised to welcome the President with the contribution of the Police Cultural Division.

MIAP

Modi’s BJP paints campaign for upcoming Uttar Pradesh Polls with Yohani’s ‘Menike Mage Hithe’

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The hit single ‘Menike Mage Hithe’ covered by Sri Lankan singing sensation Yohani has now been accounted for direct politicisation in India, as the Ruling Party Bharatiya Janata Party (BJP) led by Prime Minister Narendra Modi has copied the song’s melody for its political campaign for the upcoming State Election in Uttar Pradesh.

The song’s melody has been rearranged into ‘Yehi Modi, Yehi Yogi, Upyogi, Sahayogi,’ a Hindi theme song for the BJP’s political campaign, appealing to the public to vote for its Chief Ministerial Candidate Yogi.

The State Election at Uttar Pradesh, the largest state in India, is due to be held on February 10.

The hit single became a craze all over India in recent times and was sung by various artists in different languages in India as well as in neighbouring countries.

The foundation to the song being politicised in India was laid last year as the country’s Prime Minister Modi explicitly praised Yohani, saying that she was able to win the hearts of millions in India.

Earlier, ‘Menike Mage Hithe’ was used for the West Bengal State Election. Chief Ministerial Candidate Mamtha Banerjee used a Bengali adaptation of the song for her political campaign.