People staged a protest at the centre of Kohuwala city last night against the ongoing power crisis in the country.
The demonstration involved the holding of a candle and displaying banners, symbolising that people have fallen into darkness in every aspect.
MIAP
Tusker Royalty Nadungamuwa Raja has died at the age of 68.
Known as one of the most popular and respected elephants in Sri Lanka, Nadungamuwa Raja played a pivotal role in Buddhist religious events such as carrying the Sacred Tooth Relic in the annual procession of the Temple of the Temple of the Tooth Relic in Kandy, travelling from Gampaha to Kandy on foot.
Its death comes as a shock to many Buddhist devotees and environmentalists in Sri Lanka.
President Gotabaya Rajapaksa has appointed an Economic Council to boost the economy of the country.
Expected to gather every week, the Economic Council is chaired by President Gotabaya Rajapaksa and is attended by Prime Minister Mahinda Rajapaksa, Finance Minister Basil Rajapaksa, Ministers Bandula Gunawardena, Mahindananda Aluthgamage, Johnston Fernando and Ramesh Pathirana, President’s Secretary Gamini Senarath, Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal, Treasury Secretary S.R. Attygalla and Deputy Governor of the Central Bank of Sri Lanka Dhammika Nanayakkara.
The Council is tasked with coordinating policy making, advising government bodies such as the Ministries and advocating on behalf of the government in the face of the changes in the global economy.
Wimal Weerawansa and Udaya Gammanpila were not aware of what the government power is and the two were being used by other parties, said Chief Organiser of the Ruling Party Minister Johnston Fernando, addressing the Sri Lanka Podujana Peramuna (SLPP) Women’s Authority Board of the Nikaweratiya Electorate yesterday (06).
“Sadly, some of our friends were not aware of what the government power is. They were caught by other forces. They were being used by other parties. So, one minister came out and said things like, ‘fuel was sufficient only for four or seven days, there were no dollars, dollars were given for grapes and apples, so I have no dollars to import fuel and I will import fuel if I was given dollars..‘ That should have been said inside. Such troubles are usually being caused by the Opposition,” Fernando said.
The Minister added: “Now they are blaming us, saying all sorts of things. They are not problems to us. But we say that we are not only ready to face this challenge but also are ready to solve these problems and build the country for sure.”
MIAP
Water Supply Minister Vasudewa Nanayakkara speaking to a briefing held yesterday (06) stated that he will be boycotting the Cabinet meetings in objection to the dismissal of former Ministers Wimal Weerawansa and Udaya Gammanpila, but will not be resigning from the ministry itself.
This is mainly due to the fact that the Central Working Committee of his party does not approve of such a resignation, Nanayakkara revealed.
The Cabinet Minister also claimed that he, together with other 10 minor parties of the government, will sit in the side of the Ruling Party in Parliament tomorrow (08).
Responding to a query whether he answers an invitation to join the Samagi Jana Balawegaya (SJB) or the Janatha Vimukthi Peramuna (JVP), Nanayakkara added that such an invitation will not be accepted nor is there any reason for such an invitation to be made.
MIAP
A power cut of seven and a half hours will occur to two zones today (07) revealed the Public Utilities Commission of Sri Lanka (PUCSL).
Accordingly, zones E and F will meet a power cut of five hours in the daytime and two and a half hours in the nighttime.
Meanwhile, zones P, Q, R, S, T, U, V and W will receive a power cut of two hours in the daytime and one hour in the night time, it added.
MIAP
The country which has been collapsed in every aspect can be redeveloped and politicians instead of the public should be making commitments in this regard, said Leader of the Opposition Sajith Premadasa, speaking to media during a visit to Kandy yesterday (06).
The Opposition Leader visited the Malwathu and Asgiri Maha Vihara yesterday morning, paid homage to the Chief Prelates and received their blessings. Premadasa thereafter visited the Getambe Rajopavanarama Temple, paid homage to the Chief Incumbent of the Temple and received their blessings as well.
The Opposition Leader added that the country should be built through a sustainable and truthful programme and that Sri Lanka should deal with the world in an optimal manner in this regard.
Reminding that no country in the world had ever supported an opposition in Sri Lanka at the diplomatic level and that the Samagi Jana Balawegaya (SJB) has changed it, Premadasa pointed out that his party has a systematic plan for the future of the country and assured that the current regime, which according to him is full of corruption, fraud and bribery, will not build the country.
There are dollar reserves in the country that been looted and they should be recovered immediately, the Opposition Leader went on, urging the public to join the rally organised in Colombo on March 15 in hundred thousands to overthrow the government.
Sri Lanka’s central bank can make changes to the exchange rate in the future if necessary, but the current level is appropriate amid calls to float the currency and stop reserve sales for imports.
In a move to counter economic headwinds in the country, the Central Bank proposed urgent policy measures towards economic stability by managing inflation, attracting non debt, creating foreign capital to build foreign reserves while honouring foreign debt payment obligations.
This was disclosed by Central Bank Governor Ajith Nivard Cabral when he addressed a media conference on Friday convened to review the latest monetary policy, announcing the increase of the standing deposit facility rate and the standing lending facility rate by 100 basis points (bps) each to each, to 6.50 per cent and 7.50 per cent, respectively for the first time in 11 years.
The Central Bank has been taken by surprise with the sharp increase in inflation, Governor Nivard Cabraal said after inflation rose to 15.1 percent in February 2022,
He blamed banks for not raising deposits after injecting hundreds of billions of in new rupee reserves into banks despite running a pegged regime, to maintain artificially low policy rates as budget deficits expanded.
Sri Lanka’s 12-month inflation has gone up from 5.7 percent in September 2021 to 15.1 percent by February 2022 after two years of unrelenting money printing, 40 percent broad money growth and reserve money growing 40 percent despite two years of balance of payments deficits.
Governor Cabraal removed the price controls, allowing market rates to move up, but policy rate hikes have been slow providing rupee reserves to the banking system at low cost.
He noted that it is the responsibility to make suggestions to the government to maintain economic stability carefully considering the current and expected macroeconomic developments both globally and domestically.
Under the present economic set up, a comprehensive policy package containing both traditional and non-traditional measures, along with other initiatives that have an impact on the overall economy is essential to handle economic head winds although its immediate impact is unbearable for the people.
Answering questions raised by journalists, he said that they are ready to discuss with the IMF but most of their suggestions have already been implanted by the Central Bank.
The Monetary Board has not taken a decision on the flexible exchange rate and therefore it will remain as it is he said adding that up coming debt repayments will be made accordingly and it was never faulted by the Central Bank, he said.
However he noted that Central Bank will hold talks with donor countries and international lending agencies including China and on the government’s stance of encouraging non debt creating financial facilities.
He specifically mentioned issues faced by banks and non- banking institutions with regard to moratorium given to borrowers which would expire on March 31 this year.
The unwinding moratorium and issues faced by banks and finance companies will be discussed with the representatives of this sector and arrive at a feasible solution, he revealed.
It has transpired that several banks are showing exorbitant profits in their balance sheets due to the moratorium offered to creditors as they were unable to make provisions for non-performing facilities.
As such they have to consider these facilities as performing loans and are absorbing the interest into their profits even though they have not been actually recovered.
The effects and repercussions of these will be felt only after the moratorium is lifted and the banks are compelled to make provisions for these non-performing facilities. This matter will be rectified during talks on unwinding the moratorium, he said.
The Ceylon Electricity Board (CEB) will be implementing a short term emergency plan to halt power cuts as soon as possible with the involvement of engineers and power sector experts.
Accordingly it has announced a Power Cut Management schedule as an immediate measure , in event the CEB is unable to meet the demand of electricity commencing from today Monday (7) in accordance with this plan.
President Gotabaya Rajapaksa has issued a directive at a top level meeting recently to take prompt action according to a plan for the implementation immediately and the CEB has been asked to devise the emergency plan, a senior official of the Power Ministry disclosed.
The Finance Ministry has also expressed willingness to contribute their input in the preparation of the emergency plan.
As an immediate solution it has been suggested to expedite the emergency power purchase from private power suppliers as eight out 10 power plants of the CEB have been shut down at present due to lack of furnace oil and naphtha.
Under this set up CEB is to renegotiate the power purchasing agreements to be signed with the two leading power suppliers for a further three years.
The Ceylon Electricity Board (CEB), in keeping with a government decision, decided to call for proposals to buy 200MW of emergency power with immediate effect.
CEB General Manager Rohantha Abeysekera said the need to buy emergency power had arisen and the CEB would do it based on approval granted by the Public Utilities Commissions of Sri Lanka (PUCSL) and the Cabinet.
CEB sources pointed out that the move would be costly as even if the power plants ran or not high-capacity charges would have to be paid to buy emergency power.
Although the CEB had emphasised the need for scheduled power cuts from January, the PUCSL had continuously rejected the move, thus triggering a massive crisis, they said.
The government does not agree to the condition of private power suppliers but the President instructed to discuss this matter again making it compulsory for the ministry to purchase power as and when it is required but not for three years.
New tenders will be called for the purchase of emergency power as the previous tender was cancelled due to the condition put forward by private power providers. .
Two private power purchasing agreements are due to be approved by the Cabinet – one for 100 MW from the Ace Embilipitiya Power Plant and the other for 20 MW from the Ace Matara Power Plant.
The new emergency plan will include immediately restarting the Sapugaskanda oil refinery which was shut down twice in December 2021 and January due to non-importation of crude oil citing the dollar crisis.
Refining crude oil in Sri Lanka was the most economical way for the country because by-products of refining are also vital for the CEB and many industries, a Finance Ministry official said.
He added that the Energy Ministry and Ceylon Petroleum Corporation (CPC) have been asked to stop the previous practice of trying to find dollars to clear the fuel shipment after its arrival at the port.
The Energy Ministry and the CPC will have to take their actions with responsibility and according to a proper plan of fuel procurement rather than ad hoc measures to go for spot purchases and placing orders without considering availability of foreign exchange until the last minute, he added.
However several senior engineers of the CEB said that it is impossible to do anything now due to the failure of the authorities to heed their advice. They warned that the CEB has no alternative other than imposing 16 hour power cuts per day if the inter monsoon is not activated as expected in April.
They pointed out “if there is no rain in hydro catchment areas hydro power generation would definitely come to a standstill and thereafter nothing can be done.
The Ministry of Energy stated that 30,000 MT of Furnace oil required for Power Plants was expected by March 8.
Disheartened by Sri Lanka’s stance towards China in awarding strategic development projects, India is delaying its offering of a fiscal package on an urgent basis to assist the island nation, several foreign and current affairs analysts claimed.
This package is focused on measures to tackle an economic crisis that the country is facing in which India is expected to extend food and health security aid to Sri Lanka on an urgent basis, along with an energy security package and currency swap, and also promote its investments.
The food and health security package would envisage the extension of a line of credit to cover the import of food, medicines and other essential items from India.
In return for this gesture India is expecting Sri Lnka to fulfill certain conditions till then the future of the fiscal package including one billion dollar emergency loan from India seems uncertain, analyst said.
India has called for a road map from Sri Lanka on how it is going to overcome its economic crisis in the long term as well as to clear the decks for a long list of its economic cum strategic demands for implementation in the North and the East of Sri Lanka..
Finance Minister Basil Rajapaksa’had to postpone his visit to India twice after securing a US$ 500 million loan in December last year to clinch a further one billion dollar loan for emergency supplies of food, fuel and medicines to overcome the country’s ongoing economic crisis.
The Indian conditions for the granting of this loan package included several maritime security agreements that will strengthen India’s strategic interests, particularly around the eastern Trincomalee harbour.
These include Donier surveillance aircraft for the Sri Lanka Air Force, a ship repair dock for the Sri Lanka Navy in Trincomalee and posting of a Sri Lankan Navy officer at the Intelligence Fusion Centre, a Bahrain-based intelligence sharing office which is a US Navy initiative to combat international terrorism, the narcotics trade and ensure safe maritime passage for commercial vessels in the region.
One of the key pressure-points from the Indian Government is to start a renewable energy (solar power) project in and around Sampur near Trincomalee.
An earlier plan by India to begin a coal power project in joint partnership with Japan has now been abandoned as Sri Lanka announced a move away from coal plants as part of its futuristic energy policy.
The reopening of the Palay airport for commercial operations and several cultural projects in the Jaffna peninsula are also among items on the list already made public.
The Indian Government also wants to enter into the renewable energy field in the Delft islet after it scuttled a Chinese company securing the project following an Asian Development Bank ((ADB) tender procedure.
Assistance from India in the last six months have come in the form of;1. $ 500 million oil line of credit, $ 1 billion line of credit for essentials to be imported from India under negotiation,. Currencies swap $ 400 million, deferral of $ 515 million under Asian Clearance Union,. 40,000 MT of fuel on credit , 100,000 Rapid Antigen Test kits and. Supply of 1,000 tons of liquid medical oxygen.