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Dayasiri says Maithri needs a house and that he cannot leave to Polonnaruwa

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The Supreme Court yesterday (29) issued an interim injunction suspending the decision of the then Cabinet to grant the former President Maithripala Sirisena the official residence he used to hold during his presidency, even after his retirement.

That was when a petition filed by the Director of the Center for Policy Alternatives, Pakyasothy Saravanamuttu, was considered.

Accordingly, when inquired by the media yesterday regarding the situation regarding this house, the Minister of State Dayasiri Jayasekara replied as follows.

“Further action is being taken in accordance with the court decision. A place for the former President is essential. As a former President, he could not live in Polonnaruwa. So we are discussing what action to take in the future. ”

Located on Mahagamasekera Mawatha, Colombo, this house is a spacious house that was renovated and designed at a huge cost by combining three government ministerial quarters.

Gas prices will definitely increase further – Minister Lasantha

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Lasantha Alagiyawanna, State Minister of Consumer Protection says that gas prices will inevitably go up further.

Question: Will people have to wait in these gas queues until the Sinhala New Year?

“Especially as Litro has announced, it is currently releasing those gas products to the market at the rate of 100,000 per day. Litro has said that this deficit will be eliminated by the 4th to the 5th. So we hope that such a situation will arise and the inconvenience caused to the people will be minimized. ”

Question: Will the price of Litro gas increase?

“Gas prices will continue to rise”

Minister of State Lasantha Alagiyawanna stated this while answering several questions raised by journalists yesterday (29).

SL begs favour from  Paris Club, other lenders on debt restructuring

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Sri Lanka government will seek international sovereign bond payment extensions from Paris Club lenders and other creditors following its decision to work out a debt restructuring plan with the International Monetary Fund (IMF), official sources said.

The round table negotiations with sovereign bond holders will be carried out in New York or France in accordance with the convenience of those creditors, he disclosed. Ten per cent of Sri Lanka’s creditors are members of the Paris Club, with Japan being the main bilateral creditor for Sri Lanka.

Negotiations with bond holders in China and India, who are not Paris Club partners, have to be conducted outside the Paris Club.

No final decision has been taken on Sri Lankan officials who will be participating at these negotiations.

Sri Lanka is also exploring the possibility of working out a debt financing package to secure foreign exchange inflows into the country including remittances, a senior Finance Ministry official said.

One of the other alternate strategies is to raise funds from investors to deal with the upcoming debt payments, he added. All these suggestions included Sri Lanka’s plan of bridging finance proposals will be presented to the IMF during discussions to seek their assistance.

He disclosed that official talks were held with bankers from Rothschild & Co. and Lazard on these financing proposals including the debt financing package.

Sri Lanka will hire a global law firm to provide technical assistance on debt restructuring ahead of talks with the IMF on the country’s economic crisis, Cabinet spokesman Minister Ramesh Pathirana said.

In a movement of unity, 12 opposition MPs have called on the Sri Lankan government to negotiate a postponement and restructuring of its $25 billion debt repayments due between now and 2026.

Issuing a joint statement recently they noted that the “only way forward for Sri Lanka is to immediately initiate a multi-step process towards an orderly negotiated postponement and restructure of repayment of its sovereign debt”.

Finance Minister Basil Rajapaksa will be visiting Washington next month to present Sri Lanka’s plan of bridging finance proposals to senior IMF officials, a senior Finance Ministry official revealed.

He will be accompanied by the Treasury Secretary, Central Bank Governor, two top officials each from the Finance Ministry and the Central Bank for these IMF spring meetings, he said.

The government will seek IMF assistance for debt restructuring, foreign exchange crisis, revenue generation and reforming state-owned enterprises, according to Sri Lanka bridging finance plan.

According to former Central Bank Deputy Governor W.A. Wijewardena to rescue Sri Lanka from the present acute foreign exchange crisis, there is no alternative other than getting a longer-term loan of at least $4 billion from the IMF.

It is estimated a total of $5 billion will be need to service debt obligations (principal + interest) and other commitments in 2022, Finance Ministry data showed.

The debt restructuring suggestion was discussed widely in local media and various other public forums during the past one and half years. But it went unheeded up to now.

Sri Lanka, India ink MoUs for defence, economic, education, religious links  

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Sri Lanka, India ink MoUs for defence, economic, education, religious links  

Tightening the defence, economic, education, religious and cultural ties, multiple agreements were inked on the first day of Indian External Affairs Minister S. Jaishankar’s visit to Sri Lanka.

Meeting the three Rajapaksa brothers — President Gotabaya, Prime Minister Mahinda and Finance Minister Basil, as well as and Forign Minister G. L. Peiris ,S. Jaishankar signed six MoUs that are vital for the two countries and future cooperation.

On the security front, an MoU was signed to establish a Maritime Rescue Coordination Centre (MRCC) with a grant of $6 million from India.

Built by the Indian government-owned aerospace and defence electronics company, Bharath Electronics, with the project India is to provide three Dornier maritime surveillance aircraft to Sri Lanka and a 4,000 MT floating barge to Sri Lanka Navy.

The MRCC is to be set up inside the Sri Lanka Navy Headquarters and seven other sub-units are to be positioned around the country including one in Southern city of Hambantota, where the China-run harbour is located.

A separate MoU was signed to implement the Sri Lanka Unique Digital Identity (SL-UDI) programme on a grant of Rs 30 crore.

However both the projects were criticised by Sri Lanka’s opposition and activists claiming that the government was selling the country’s national resources at a cost of national security.

They claimed that through the MRCC, the entire airspace is sold to India under the guise of a security system and positioning of even sub-units in naval bases covering entire Indian ocean around Sri Lanka is calling for a geopolitical war with China. 

Sri Lanka and India have agreed to implement several strategically important projects including Hybrid Power Projects in three islands in Jaffna, Unique Digital Identity (SL-UDI) scheme, and Development of Fisheries Harbours in Sri Lanka.

The two countries have entred into these agreements by signing  six Memorandum of Understandings (MoUs) for the implentaion of strategically important projects  in the presence of Visiting External Affairs Minister (EAM) Dr. S.Jaishankar and Foreign Minister Prof. G.L Peiris in Colombo on Monday 28. 

One of the most important projects was the hybrid power plants in Jaffna, which was initially awarded to MS/SinosarEtechwin Joint Venture in China.

During the ongoing visit, Dr. S. Jaishankar assured India’s continued support in Sri Lanka’s economic recovery process.

He reiterated that India’s partnership with Sri Lanka was rooted in the ‘Neighbourhood First’ approach and S.A.G.A.R (Security And Growth for All in the Region) doctrine and that India has stood by Sri Lanka in the hour of its need, foreign ministry sources said. 

The six MoUs are as follows 

§ MOU for the establishment of modern computer labs and smart boards with customized curriculum software in 200 schools in the Galle district.

§ MOU on the implementation of the Sri Lanka Unique Digital Identity (SL-UDI) programme with the Government of India’s Grant Assistance.

§ MOI between the Sushma Swaraj Institute of Foreign Services (SSIFS), India, and the Bandaranaike International Diplomatic Training Institute (BIDTI).

§ MOU for providing Marine Rescue Coordinating Center (MRCC).

§ MOU on the implementation of Hybrid Power Projects in three islands in Jaffna.

§ MOU on Cooperation in Development of Fisheries Harbours in Sri Lanka.

Following the talks with Minister G. L Peiris, Dr. Jaishankar  noted that “he held productive talks with Foreign Minister G.L. Peiris of Sri Lanka.”

“Discussions were centred on  economic recovery,  development partnership, mutual security, fishermen’s issues, and international coordination,” he added.

India steps into rescue Sri Lanka amidst exodus in worst economic crisis

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Sri Lanka is going through its worst economic crisis since its Independence with people dying while waiting in queues for fuel, and authorities are scrapping school exams after running out of dollars to import paper and ink.

Driven out by hunger and loss of jobs, people from the island nation are seeking refuge in India, which is doing its best to help the neighbouring country

India has extended financial assistance to the tune of US$2.4 billion in the last three months to Sri Lanka, which includes a $400 billion RBI currency swap, deferral of a $500 million loan and a $1.5-billion credit line for importing fuel, food and medicines.

Further the cash strapped government has sought another additional credit line of $1.5 billion from India to import essentials, the island nation’s central bank governor Ajith Nivard Cabraal said on Monday, amid its worst economic crisis in decades

India has offered financial aid to tide over the island nation’s foreign currency woes, its foreign exchange reserves having dwindled to about US$2.3 billion one month’s import cover.

In mid-2021, Sri Lanka received help from Bangladesh, by way of a currency swap worth $200 million. It has sought another swap $ 250 million from Bangladesh Foreign Minister Dr A K Abdul Momen who is now in Sri lanka to attend the BIMSTEC summit.

Inflation is in double digits, as is the fiscal deficit as a proportion of GDP. Foreign debt as a percentage of GDP is in the three digits.

NCPI based headline inflation (Y-o-Y) increased to 17.5 per cent in February 2022 from 16.8 percent in January 2022 due to increases in prices of items in both Food and Non-food categories, the Central Bank announced.

Meanwhile, Food inflation (Y-o-Y) and Non-food inflation (Y-o-Y) recorded at 24.7 per cent and 11.0 per cent, respectively, in February 2022.

As every cloud has a silver lining, Sri Lanka’s merchandise exports increased by 9.91% to US$ 1,046 Million in February 2022 compared to February 2021 as per the data released by the Sri Lanka Customs. Further, it is a 5.8% increase when compared to February 2020.

Export Development Board (EDB) Chairman Suresh D de Mel said; “Sri Lanka’s Merchandize Exports maintained the above $ 1 billion mark continuously from the beginning of this year, recording an increase of 9.91% to US$ 1.05 billion in February 2022 compared to last year. This was also the ninth consecutive month of having over $1 Billion revenue.

Even as Sri Lanka has given priority to meeting its debt servicing obligations to foreigners, international rating agencies downgrade Sri Lanka’s credit rating and the current account deficit was 3.8 percent of GDP in 2021.

Sri Lanka’s official remittances in January 2022 were down 61.6 per cent from a year earlier, as overseas workers sent money through unofficial channels at higher parallel exchange rates.

Foreign remittances dropped to US $259.2 million, more than a 60 per cent decrease from January 2021 levels while it has further come down to 204.9 million around 63 percent decrease from February 2021 ,Central Bank data showed.

Further earnings from tourism recorded a meager sum of $173.6 million last month although tourist arrivals have increased to 96507.

Sri Lanka imports a whole lot of what it consumes but has generally managed to pay for its imports with earnings from plantation exports, healthy tourism earnings and a steady infusion of foreign currency borrowings. Tourism accounts for some 10-12% of GDP.

. Before the economy would recover from this disaster, reductions in the value-added tax contributing to a fall in revenues rather than to a boost in economic activity, the pandemic struck the next year.

The economy shrank, the government responded with effective vaccination, welfare handouts, a fiscal deficit in excess of 10% of GDP and an easy money policy. The economy recovered somewhat in 2021, but tourism stayed depressed, the current account widened, and inflation climbed.

India reiterated its continued support to Sri Lanka

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Dr. S Jaishankar, the Indian Foreign Minister, met with SJB MP and eminent economist Dr. Harsha de Silva, founder of 1990 Suwaseriya, on Tuesday 29 at the 1990 Headquarters in Rajagiriya.

Dr. S Jaishankar reiterated his continued support to Sri Lanka and thanked Dr. Harsha de Silva for his commitment to 1990 Suwaseriya. Minister Sudarshani Fernandopulle and a group of officials including Chairman Dumindra Ratnayake were also present at the occasion.

The project was launched at the initiative of Dr. Harsha de Silva, then a non-cabinet minister of the Yahapalana government and now an Opposition MP.

the 1990 Suwa Seriya Project was launched in the Western and Sabaragamuwa Provinces with 88 ambulances purchased from India with a grant of USD 7.6 million. Following the success of that pilot project, India granted a further USD 15.2 million to cover the whole island with the service.

Today as many as 297 ambulances are operated countrywide and they are a common sight even in remote areas. The service is managed entirely at the expense of the Government of Sri Lanka through the Suwa Seriya Foundation set up by an Act of Parliament. It is run by an eminent group working in an honorary capacity

.the ambulance fleet will be augmented with 112 new vehicles. The situation caused by the current explosion of the Covid pandemic has demonstrated a new the value of this service which has over the past few years on this redoubled its efforts attending not only to medical and accident related emergencies but also in helping the transfer of Covid-infected patients to hospitals.

The country certainly owes a debt of gratitude to India, whose Prime Minister Narendra Modi took a personal interest in the project when Dr. Harsha de Silva first made the request to him while he was here on an official visit some years ago. Equally so to de Silva for all the hard work he has put in to make the project the success it is.

U.S. Under Secretary for Political Affairs, Victoria Nuland concludes successful visit to Sri Lanka

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U.S. Under Secretary for Political Affairs, Victoria Nuland visited Sri Lanka from 22 – 23 March, 2022. During the visit, Under Secretary Nuland held productive discussions with Minister of Foreign affairs G.L. Peiris and Secretary of Foreign Affairs Prof. Jayanath Colombage.  Minister Peiris warmly welcomed the Under Secretary and stated that Sri Lanka considers the U.S. as an important partner and looks forward to working closely with the Biden Administrationto elevate the longstanding relations to greater heights.

Minister Peiris stated that it was important to enhance economic cooperation, as Sri Lanka recovers from the pandemic and encouraged increased U.S. investments to Sri Lanka. He also outlined the progress in reconciliation and human rights, including the PTA reforms passed by Parliament on 22/03. Both sides resolved to further consolidate the strong bilateral relations of over seventy years, into a multifaceted partnership for the mutual benefit of the two countries. Under Secretary Nuland accentuated that the Untied States is eager to support Sri Lanka, a vital partner of the U.S.

During the 4th session of the Sri Lanka – U.S. Partnership Dialogue, both delegations reiterated their intent to explore new opportunities to enhance market access, bilateral trade, investment, and tourism. They also committed to working together to address climate change and other environmental challenges and resolved to continue cooperation in maritime security. The United States welcomed action taken by Sri Lanka to promote reconciliation and human rights in pursuit of development and prosperity. Both delegations welcomed ongoing bilateral defense and security sector cooperation and the United States resolved to explore opportunities to further expand counter-terrorism cooperation with Sri Lanka. Both delegations also expressed strong support for ongoing cooperation between the two countries in education and culture. 

The visiting Under Secretary for Political Affairs of the U.S. Department of State Victoria Nuland also paid a courtesy call on President Gotabaya Rajapaksa at the Presidential Secretariat, visited the Colombo Port and met with civil society leaders and the private sector.

State Minister of Regional Cooperation Tharaka Balasuriya, Secretary to the Ministry of Foreign Affairs Jayanath Colombage, senior officials of the Ministries of Foreign Affairs, Defence, Public Security, Justice, Health, Agriculture, Technology, Environment, Education as well as the Department of Commerce, Board of Investment, Department of External Resources and the Export Development Board participated in the Partnership Dialogue. Under Secretary Nuland was accompanied by the Assistant Secretary for South and Central Asian Affairs of the U.S. Department of State, Donald Lu, the US Ambassador to Sri Lanka Julie Chung, the Principle Deputy Assistant Secretary of Defense for Indo-Pacific Security Affairs Amanda Dory and senior officials of the U.S. Department of State and the U.S. Embassy in Colombo.

Ministry of Foreign Affairs

Colombo

28 March, 2022

India welcomes Government-TNA talks

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       External Affairs Minister Dr. S. Jaishankar met a delegation from the Tamil National Alliance led by Hon. R. Sampanthan, Member of Parliament today during his visit to Sri Lanka.

2.     The TNA delegation briefed EAM of the latest developments, focusing on the 25 March meeting between the Government and the TNA. They conveyed that the issues of release of political prisoners, land utilization, missing persons, 13th Amendment implementation and diaspora investment were discussed in the meeting.

3.     Earlier, the Sri Lankan Government’s engagement with TNA also came up during EAM’s call on H.E. The President of Sri Lanka. EAM received a more detailed understanding on this subject from Foreign Minister Prof. G.L. Peiris later in the evening.

4.     On his part, EAM welcomed in all these interactions the positive developments regarding the issues on the Government-TNA agenda. He emphasized that the Government of India was consistently supportive of the realization of the aspirations of the Tamils of Sri Lanka for equality, justice, peace and dignity within the framework of a united Sri Lanka.

5.     The contribution of India’s development partnership to economic recovery in the North and East was also recognized in all the meetings. EAM expressed particular satisfaction at the virtual inauguration of the Jaffna Cultural Centre that he did along with H.E. The Prime Minister.

6.      EAM separately met Minister of Fisheries and Aquatic Resources Hon. Douglas Devananda. They discussed issues pertaining to fishermen and exchanged views on devolution.

****Colombo
28 March 2022

Find Answers Jointly Through Genuine Discussions

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Sharp increases in prices of basic commodities, accompanied by shortages, have severely impacted upon the standard of living of the general population and even prompted the government to call out the army to maintain social peace where queues have formed, as at petrol stations.  The All Party Conference (APC) presided over by President Gotabaya Rajapaksa has taken place in this context of an unprecedented economic crisis in the country.  

The boycott of the APC by the main opposition parties and even by a section within the government highlights the sharp political divisions and lack of trust within the polity.  The president recognized this reality when he stated that the conference was not called to gain a political advantage. He added that he would once again invite the parties that did not attend the conference. The president also said that he would prepare a plan to carry out the recommendations made by the political party leaders.

The National Peace Council appreciates the approach of finding solutions through discussions. President Rajapaksa’s apology to former Prime Minister Ranil Wickremesinghe after a government member tried to score political points against the former government was in keeping with his stated commitment to make this an occasion for non-partisan problem solving. The president’s meeting with the TNA today must also lead to further discussions and action on the ground in the area of national reconciliation that will help to strengthen economic investment and aid flows to the country. 

We call on the other political parties to join the next round of discussions. Unlike the parliamentary forum in which the government and opposition sit on opposite sides, the need of the present time is to agree on a policy for the country that will resolve the economic problems that the people face and which all political parties can endorse for the longer term irrespective of who leads the government.  This time of crisis demands sincerity, commitment and mutual accommodation on partisan political positions for the sake of the people.

National Peace Council of Sri Lanka

Visit of External Affairs Minister Dr. S.Jaishankar to Sri Lanka

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     External Affairs Minister (EAM) Dr. S.Jaishankar concluded his first day of discussions during his visit to Sri Lanka on 28 March 2022. He is accompanied by a five-member official delegation from Ministry of External Affairs, New Delhi for the bilateral and BIMSTEC engagements.

2.     EAM called on H.E President Gotabaya Rajapaksa and conveyed personal greetings from Prime Minister Narendra Modi. President of Sri Lanka thanked Government of India (GOI) for economic assistance amounting to around USD 2.5 billion extended to Sri Lanka in 2022. Dr. S. Jaishankar assured India’s continued support in Sri Lanka’s economic recovery process. The discussions also covered the recent Government-TNA talks, defence and energy cooperation and fishermen’s issues. It was agreed to deepen economic and commercial linkages with special emphasis on Indian investments.

3.      EAM joined H.E Prime Minister Mahinda Rajapaksa at a special event held in Temple Trees to virtually inaugurate the Jaffna Cultural Center. They watched a cultural performance at the Center – a Bharatnatyam rendition, a prayer dedicated to the peoples of India and Sri Lanka and their eternal friendship. They also had a virtual tour of the Artificial Limb Fitment Camp in Jaffna which is supported by GOI. In addition, they also witnessed signing of MoU on implementation of grant assistance from India to promote Buddhist ties between India and Sri Lanka. Further, there was an exchange of notes on the amendment to Article IX of the MoU on construction of Jaffna Cultural Center.

4.       EAM met Finance Minister Hon. Basil Rajapaksa in the morning, who stressed the significance of deeper economic engagement between the two neighbours at a time when the impact of COVID-19 is still being strongly felt. EAM reiterated that India’s partnership with Sri Lanka was rooted in the ‘Neighbourhood First’ approach and S.A.G.A.R (Security And Growth for All in the Region) doctrine. India has stood by Sri Lanka in the hour of its need.

5.        Foreign Minister Prof. G.L Peiris held talks with EAM in the evening. They covered the entire gamut of bilateral engagement. Attesting to the comprehensive nature of bilateral ties, they also witnessed the signing of bilateral documents in diverse areas:

i)   MOU on implementation of Sri Lanka Unique Digital Identity (SL-UDI) programme with GOI’s grant assistance;

ii)   MOU for providing Maritime Rescue Coordination Center;

iii)  MOU on implementation of Hybrid Power Projects in three Islands off Jaffna;

iv)  MOU on cooperation in development of Fisheries Harbours in Sri Lanka;

v)  MOU for the establishment of Modern Computer Labs and smart boards with customized curriculum software in 200 schools in Galle District; &

vi)  MOU between Sushma Swaraj Institute of Foreign Service and the Bandaranaike International Diplomatic Training Institute.

6.     EAM separately met Minister of Fisheries and Aquatic Resources Hon. Douglas Devananda. They discussed issues pertaining to fishermen and exchanged views on devolution.

7.     EAM’s other engagements included a visit to HCL Technologies, an LIOC petrol station, and discussions with leaders representing various Tamil political parties. It may be recalled that HCL Technologies has created more than 1,800 jobs locally. LIOC has been at the forefront of energy cooperation between the two countries since its incorporation as a Sri Lankan Company two decades back.

8.     Jaffna Cultural Center is a glowing example of India-Sri Lanka development partnership. It was conceived as a reconciliation project primarily aimed at expanding cultural infrastructure for people of Northern Province. This state-of-the-art facility, constructed with grant assistance from GOI, consists of multiple facilities such as a museum of two floors; an advanced theatre style auditorium for more than 600 people; a 11-storeyed learning tower; a public square which could also act as an amphitheater; etc.

9.     EAM will be attending the BIMSTEC Ministerial Meeting on 29 March 2022.

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Colombo
28 March 2022