September 08, Colombo (LNW): Tamil National Alliance (TNA) spokesman M.A. Sumanthiran has come forward in defence of National People’s Power (NPP) leader and presidential candidate Anura Kumara Dissanayake, following backlash over his recent comments in the North, which according to his political opponents ‘racially provocative’.

Dissanayake had remarked, “When the people of the South are rallying for change, if you oppose that change, imagine the mood of the people in the South. Do you want Jaffna to be seen as opponents of that change?”

The statement, viewed by some as a veiled threat to the Northern populace, drew sharp criticism, particularly from incumbent President Ranil Wickremesinghe, who condemned the remarks.

However, in a media address, Sumanthiran dismissed claims of racial intent behind Dissanayake’s words. “I know comrade Anura Kumara well,” he stated. “He is not someone driven by racist sentiment. In fact, he has consistently fought to eradicate racism from this country. His comments should not be misinterpreted.”

Sumanthiran emphasised that the TNA did not interpret Dissanayake’s statement as hostile towards the Tamil people, reaffirming his confidence in Dissanayake’s commitment to equality and unity.

Whilst the TNA has thrown its support behind opposition leader Sajith Premadasa in the upcoming presidential election, Sumanthiran highlighted areas of common ground between his party and Dissanayake’s NPP, particularly in addressing corruption and misrule.

“We may back different candidates, but on key issues like rooting out corruption, we stand together,” he said.

In contrast, President Wickremesinghe maintained a stern stance against Dissanayake’s remarks, arguing that they amounted to coercion of the Northern community. Speaking at a rally in Jaffna, the President assured the Northern population that their rights would be fully safeguarded under his leadership. “The people of the North will be protected by the law, and such threats will not be tolerated,” Wickremesinghe declared, demanding the NPP leader to publicly apologise to both the Northern Tamil people and the Southern communities for his rhetoric.

September 08, Colombo (LNW): Deputy Postmaster General Rajitha Ranasinghe has announced that September 08, 2024 has been designated as a special day for distributing official polling cards, despite it being a weekend.

In a public statement, Ranasinghe emphasised that the Department of Posts is committed to delivering these cards directly to voters’ homes from 8 a.m. to 6 p.m.

Citizens are being encouraged to remain at home to receive their polling cards, which require signatures to confirm receipt.

This measure aims to ensure that voters have their documents in hand well ahead of the upcoming presidential election. The Department of Posts has already successfully distributed around 3 million polling cards to date.

The process, which commenced on September 03, will continue until September 14. Officials are urging residents to be mindful of the delivery schedule to avoid any delays or missed opportunities to receive their official cards, which are critical for participation in the election.

September 08, Colombo (LNW): The Ministry of Finance has announced a reduction in the cess levy on imported cement, lowering the charge by Rs. 01 per kilogramme.

This adjustment took effect from September 06, 2024 and is expected to provide some relief to the construction sector, which has been impacted by rising material costs.

The decision to revise the levy was made under the authority of President Ranil Wickremesinghe, who holds the portfolio of Minister of Investment Promotion. The change was implemented in accordance with Section 14 of the Sri Lanka Export Development Act, No. 40 of 1979, with the approval of the Minister of Finance, Economic Stabilisation, and National Policies.

The reduction in the levy aims to promote investment in the construction industry by easing financial pressures and potentially encouraging increased activity in infrastructure development.

Given the importance of cement as a key raw material in construction, the government hopes this move will stimulate growth, especially in public and private construction projects.

September 08, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has eased the timeframe for exporters to convert their foreign earnings into Sri Lankan Rupees, providing additional flexibility for businesses.

This change comes under the newly issued “Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024,” which was formally approved by Parliament on 4th September 2024 and published in the latest Gazette Extraordinary No. 2391/02.

Under the previous regulations, exporters were mandated to convert their export earnings by the seventh day of the month following the receipt of proceeds.

However, the revised rules now extend this deadline to the tenth day of the month, but after a period of three calendar months from the date of receiving the export funds.

This change is intended to offer exporters more time and flexibility in managing their financial transactions while aligning with foreign currency inflows.

The CBSL has highlighted that the new rules aim to better accommodate the needs of exporters, particularly in light of evolving global market conditions and the operational challenges they face.

The amendment reflects ongoing efforts to support the export sector, which is critical to Sri Lanka’s economic stability.

Exporters can access the full set of updated guidelines through the CBSL’s Department of Foreign Exchange website at www.dfe.lk.

September 08, Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (08).

A few showers may occur in Northern province.

Strong winds about (40-50) kmph can be expected at times over Western slopes of the central hills, Northern, North-central and North-western provinces and in Hambantota, Monaragala and Trincomalee districts.

Marine Weather:

September 07, Colombo (LNW): The government has been called upon to “clean up and move forward” following a decisive directive from President Ranil Wickremesinghe. According to reports, the President has informed all ministers and Parliamentarians who are part of the government but do not support him in the upcoming Presidential Election to step down from their positions.

Political sources reveal that President Wickremesinghe’s decision was influenced by requests from several party organizations and ministers aligned with him. These supporters argued that it is counterproductive for those who do not back the President at this critical juncture to remain in the government, accusing them of political maneuvering by sharing their decisions with opposition factions.

As a result, the President’s supporters have asked for the removal of dissenting members, allowing him to conduct his election campaign without internal resistance. It has been reported that President Wickremesinghe has already dismissed four state ministers with immediate effect, following these appeals.

Furthermore, several other state ministers and members of parliament have been warned to make a clear decision regarding their stance, rather than remain in the government without genuine support. As the presidential election reaches a crucial phase, some of these state ministers have reportedly requested the chance to resign voluntarily rather than face dismissal.

September 07, Colombo (LNW): Prof. Lee C. Buchheit, a renowned expert in Sovereign Debt Management with a distinguished 43-year career in private legal practice, praised Sri Lanka’s disciplined approach in emerging from its recent economic crisis. He made these remarks at the 74th Anniversary Oration of the Central Bank of Sri Lanka (CBSL), held yesterday at the Atrium of CBSL Head Office in Colombo.

In his oration titled “Sovereign Debt: The Myth of the Golden Age,” Prof. Buchheit reflected on the complexities of managing sovereign debt in the modern era. He pointed out that creditors are unlikely to demand complete debt forgiveness, but will instead favor restructuring. Drawing on his vast experience as a tax and economic expert who has helped many countries recover from financial crises, Prof. Buchheit emphasized that sovereign debt is an inevitable outcome of crises such as economic downturns, pandemics, or wars. He humorously remarked that some sovereign debt could endure indefinitely, much like “true love.”

Prof. Buchheit also expressed his view that it is justifiable for countries to borrow internationally for credible infrastructure development. However, he argued that borrowing to maintain a large public sector or to provide regular handouts is not sustainable. He cautioned against the common practice of increasing taxes to service debt, citing Kenya as an example where such measures led to widespread protests.

To illustrate the global challenge of sovereign debt, Prof. Buchheit referred to the United States, the world’s largest sovereign debtor. “The total U.S. government debt now stands at about $35 trillion,” he noted. “What is astonishing about that figure is not just its size, but the speed with which the debt has accumulated.” He highlighted that over the past 25 years, the U.S. national debt grew from $6 trillion to $35 trillion, while its debt-to-GDP ratio surged from about 60% to 125%.

Prof. Buchheit further warned that according to the nonpartisan Congressional Budget Office, U.S. public debt is expected to surpass 170% of GDP in the next 30 years. He added that the incoming U.S. administration will face the daunting task of borrowing not only to cover the existing debt but also to refinance the $35 trillion debt stock, which will have repercussions for other countries as well.

Concluding his address, Prof. Buchheit likened the burden of sovereign debt passed on to future generations to environmental pollution, which he described as a “major sin.” He remarked, “The next generation, which may come to protest the state of the planet, cannot yet do so since they are not born.”