The new Cabinet of Ministers is due to be sworn in today at 10.30 am at the President’s House, LNW learned.
Ranil’s ‘Road Map’ to revive Sri Lanka to be launched tomorrow
The Road Map to revive Sri Lanka from its economic abyss introduced by Leader of the United National Party (UNP) former Prime Minister Ranil Wickremesinghe is due to be launched tomorrow (19).
Wickremesinghe is believed to be demonstrating his programme in Parliament tomorrow.
MIAP
MR informs President he will not resign, insists dismissal if necessary
Mahinda Rajapaksa has reportedly informed President Gotabaya Rajapaksa that he will not resign from his post as the Prime Minister.
We earlier reported that the independent MP group led by Wimal Weerawansa, Udaya Gammanpila and the Sri Lanka Freedom Party (SLFP) has informed the President that they would be ready to rejoin the government if Mahinda Rajapaksa chooses to resign. The matter was also briefed to the Prime Minister by the President, we learned.
In response, the Prime Minister has informed the President that he will not resign and may he be dismissed from the post should it be necessary, sources told LNW.
MIAP
New Cabinet to be sworn in today. Many state ministers offered Cabinet positions
The new Cabinet of Ministers is to be sworn in today (18) sources said.
Comprising 22 Ministers, the new Cabinet is believed to be having many new faces.
Many young public representatives who served as state ministers up to this point are believed to be given positions in the Cabinet.
Many senior politicians who held Cabinet positions have already informed the President that they do not wish to continue the Cabinet in the face of the political situation of the country and the growing objection from the public.
MIAP
NPP’s ‘People’s March’ attended by a massive crowd (PHOTOS)
The anti-government ‘People’s March’ organised and commenced by the National People’s Power (NPP) yesterday (17) was attended by a massive crowd in its first walk from Beruwala to Wadduwa via the Galle Road.
The march is expected to move for three consecutive days April 17, 18 and 19 from Beruwala to Lipton Circle, Colombo.
Public representatives of the Janatha Vimukthi Peramuna (JVP), people of profession of the NPP, artists, trade union members and many other activists joined the event.
MIAP
Two-step power cuts resume from today
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
HR Watch urges IMF to force the Govt to tackle crisis before talks
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
CB’s Interest rate hike pushes SMEs into near bankruptcy
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.
Ceylon Chamber discusses investment promotion with Bangladesh
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.
Sri Lanka Government seeks closer engagement with Algeria
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.