May 30, Colombo (LNW): President Ranil Wickremesinghe has underscored that none of the current presidential candidates have expressed intentions to abolish the executive powers associated with the presidency.

Speaking at a forum for legal professionals, the President highlighted that the executive authority vested in the presidency has been instrumental in Sri Lanka’s economic development and in resolving the 30-year civil conflict.

While acknowledging both the benefits and drawbacks of the executive presidency, President Wickremesinghe noted a significant disconnect between the Executive President and the rest of the government during the period of the good governance government.

“The executive powers were crucial in maintaining stability during the ‘Aragalaya’. This was particularly evident when there was no clear successor for the premiership. On one occasion, when the President travelled to Trincomalee, there were calls for my resignation as Prime Minister,” he said.

“However, I made it clear that I could only resign if there was a parliamentary majority, and even then, the resignation would need to be submitted to the President. Resigning under external pressure or personal threats, such as those to my residence, would risk the rise of an undemocratic successor,” Wickremesinghe claimed.

He also reaffirmed the government’s commitment to holding the presidential election in the future.

“None of the candidates seeking the presidency have proposed abolishing its executive authority. It is essential that we develop a programme aimed at strengthening the role and capabilities of the parliament,” he added.

President Wickremesinghe made these remarks during the “What’s New” dialogue on legal reforms with young legal professionals at a workshop held at the Presidential Secretariat on Tuesday.

May 30, Colombo (LNW): Thailand’s cabinet has endorsed new visa promotions aimed at attracting more tourists, including those from Sri Lanka.

Under this initiative, Sri Lankan tourists will no longer require a visa to enter Thailand and can stay for up to 60 days.

Effective from 1 June 2024, this measure is part of broader efforts to enhance Thailand’s appeal to international visitors, as reported by the Bangkok Post.

Government spokesman Chai Wacharonke stated that the Foreign Ministry proposed these measures to attract as many visitors as possible.

As a result of the recent changes, the number of countries eligible for visa-free entry has increased from 57 to 93.

The 57 nations that previously enjoyed a visa waiver can now receive a 60-day stamp on arrival:

1. Canada
2. Czech Republic
3. Denmark
4. Estonia
5. Finland
6. France
7. Germany
8. Greece
9. Hungary
10. Iceland
11. Indonesia
12. Republic of Ireland
13. Israel
14. Italy
15. Japan
16. Kuwait
17. Latvia
18. Liechtenstein
19. Lithuania
20. Luxembourg
21. Malaysia
22. Maldives
23. Mauritius
24. Monaco
25. The Netherlands
26. New Zealand
27. Norway
28. Oman
29. The Philippines
30. Poland
31. Portugal
32. Qatar
33. San Marino
34. Singapore
35. Slovakia
36. Slovenia
37. Spain
38. South Africa
39. South Korea
40. Sweden
41. Switzerland
42. Turkey
43. Ukraine
44. United Arab Emirates
45. United Kingdom
46. United States
47. Peru
48. Hong Kong
49. Vietnam
50. Saudi Arabia
51. Andorra
52. Australia
53. Austria
54. Belgium
55. Bahrain
56. Brazil
57. Brunei

The 13 nations whose citizens previously received a 30-day stamp on arrival will now receive a 60-day stamp:

1. India
2. Kazakhstan
3. Malta
4. Mexico
5. Papua New Guinea
6. Romania
7. Uzbekistan
8. Taiwan
9. Bhutan
10. Bulgaria
11. Cyprus
12. Fiji
13. Georgia

The six new nations whose citizens now enjoy a visa waiver and a 60-day stay are:

1. China
2. Laos
3. Macau
4. Mongolia
5. Russia
6. Cambodia

The 17 new nations now eligible for visa on arrival and will receive a 60-day stamp are:

1. Guatemala
2. Jamaica
3. Jordan
4. Kosovo
5. Morocco
6. Panama
7. Sri Lanka
8. Trinidad and Tobago
9. Tonga
10. Uruguay
11. Albania
12. Colombia
13. Croatia
14. Cuba
15. Dominica
16. Dominican Republic
17. Ecuador

By: Isuru Parakrama

May 30, Colombo (LNW): The prevailing showery and windy conditions over the island are expected to continue further, due to the active South West Monsoonal condition, and showers, therefore, will occur at times in Western, Sabaragamuwa, Central and Southern provinces, with several spells of showers being expected to occur in North-western province, the Department of Meteorology said in its weather forecast today (30).

Fairly heavy showers above 75 mm are likely at some places in Western and Sabaragamuwa province and in Nuwara-Eliya district.

Showers or thundershowers will occur at a few places in Uva province and in Ampara and Batticaloa districts in the evening or night.

Strong winds of about (50-60) kmph can be expected at times over Western slopes of the central hills and in North-central, Western, Southern and North-western provinces and in Trincomalee and Monaragala districts.

Marine Weather:

Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island.

May 29, Colombo (LNW):The directors of Onmax DT, a company involved in a pyramid scam, have assured the Colombo Magistrate’s Court that they will repay the depositors who lost their investments within two years. This assurance was given during court proceedings presided over by Chief Magistrate Thilina Gamage.

Onmax DT has been accused of operating an illegal financial scheme that resulted in significant financial losses for thousands of depositors. Anuja Premaratne, President’s Counsel representing the company’s directors, informed the court that they plan to reimburse 61,206 depositors.

The court had previously imposed a prohibition order on the company’s bank accounts. However, Premaratne indicated that once this ban is lifted, the depositors would begin receiving their funds within the promised two-year period.

Namal Rajapaksa, the lawyer representing the depositors, highlighted that the defendants owe approximately 250 million rupees to their clients. Chief Magistrate Thilina Gamage instructed the defendants to prepare and submit a comprehensive repayment plan promptly.

Additionally, the court will review the status of the ban on the company’s bank accounts. The next hearing is scheduled for July 09, during which the court will assess the progress of the repayment plan.

May 29, Colombo (LNW): The Colombo District Court has extended the interim injunction preventing former President Maithripala Sirisena from functioning as the Chairman of the Sri Lanka Freedom Party (SLFP) until June 12.

The extension was ordered by Colombo District Judge Sandun Withana today (May 9) during the consideration of a plaint filed by former President Chandrika Bandaranaike Kumaratunga.

Kumaratunga’s complaint asserts that, according to the constitution of the SLFP, Sirisena has no legal right to serve as the party’s chairman. Consequently, the plaint requested an enjoining order to prevent Sirisena from assuming this role.

1. President Ranil Wickremesinghe instructed officials to provide immediate relief to those affected by the recent inclement weather and to continue these efforts until the situation improves, the PMD reported. According to the Disaster Management Centre (DMC), eight deaths have been reported across the island as of 27th. Seven people died in accidents caused by strong winds, and one person died in a boat capsizing incident.
2. The ongoing private creditor debt restructuring negotiations process were expected to be complete without much delay and the Executive Board approval of the IMF programme second review followed by the third tranche was expected on schedule in June, Dr. Nandalal Weerasinghe told the post monetary policy review press conference held in Colombo.
3. Labour and Foreign Employment Minister Manusha Nanayakkara announced that the Cabinet has approved a proposal to provide social security benefits to all workers aged 55 and above across various industries.This initiative includes the preparation of necessary legal provisions, which will be developed alongside the “Garusaru” program, he said.
4. Parliamentarian Namal Rajapaksa says that postponing elections is not healthy for any democracy. The Sri Lanka Podujana Peramuna (SLPP) National Organiser stated that extending the terms of the President and the Parliament undermines the fundamental principles of a democratic society.
5. Safeguarding the safety of school children through ensuring a safe school environment especially during prevalent weather-related emergency situations is a top priority in government’s disaster management programme, said State Minister of Defence Premitha Bandara Tennakoon.
6. A group of civil activists gathered in front of the Sri Lanka Podujana Peramuna office at Nelum Mawatha, Battaramulla for a protest. Their protest centered around the contention that the Sri Lanka Podujana Peramuna lacks the mandate to endorse bills affecting the country.
7. The Colombo District Court today issued another restraining order preventing Justice Minister Wijeyadasa Rajapakse from functioning as the Chairman and a member of the Sri Lanka Freedom Party (SLFP). The court order has been issued on 28th after considering a complaint filed by State Minister Lasantha Alagiyawanna.
8. Dr. Sarath Amunugama, a prominent figure within the Mawbima Janatha Party, has tendered his resignation. Amunugama confirmed that he formally communicated his decision to the party’s leader, Dilith Jayaweera
9. The exchange of information between Sri Lanka and India has commenced concerning the Sri Lankans arrested in India, allegedly associated with ISIS. This collaborative effort involves both the Sri Lanka Army Intelligence Division and the Police Terrorist Investigations Division. Security forces are uncovering details about individuals within Sri Lanka who may have had connections with the arrested suspects.
10. Sri Lankan sprinter Aruna Darshana clinched the gold medal in the men’s 400m event at the second Belt and Road Athletics Invitation Meet in Chongqing, China. The 25-year-old athlete completed the 400m final in 45.48 seconds.

May 29, Colombo (LNW): A train delay has been reported along the main railway line, according to Railway Traffic Superintendent M.J. Indipolage. The delay occurred because of a technical fault on a train near the Gampaha railway station.

The affected train was traveling from Mirigama to Colombo Fort. Repair teams have been dispatched to address the issue and restore normal service as soon as possible.

I felt shamed when I saw the attached video (Watch video here) on the meeting of the COPF, Parliament, on 22 May 2024, held for examination of the proposed public debt management law for Sri Lanka.At the beginning of the meeting, it was stated that 

• Work on this law had been in progress since 2016 although it was delayed due to various reasons and 

• The work has now recommenced as a condition of the IMF programme due to the current debt unsustainability situation.

I felt shamed due to two facts.

• First, the proposed new debt law is now presented after 8 years of delay only after the bankruptcy of the government. This work seriously started in early 2016 as the danger of debt management by the central bank (CB) since 1950 was foreseen at that time.

• Second, some of professionals who disrupted the work on reform initiatives on debt management inclusive of consolidated public debt law in 2016 attended the COPF as brand new professionals. The monetary policy team of the CB was dead against such reforms for debt market development with transparency due to various hidden agendas. At that time, their fondly debt market structure was the private placement desks to control the interest rates/yield curve for the monetary policy against the global principle of competitive and transparent debt markets.

Therefore, this article is to highlight the debt management reform agenda pursued in 2015-17. Since I also was actively involved in driving the work, I have the recollection on many events.

The purpose of reform was to allow for a simple economic principle to work in the debt market, i.e., a transparent and competitive market with modern technology that would improve the price discovery, liquidity and discipline of both debt issuer and investors.

It was the new policy of the then government and the CB as they foresaw grave risks of debt unsustainability despite the fact that the most part of debt management and market had been handled by the CB under the Monetary Law Act, Local Treasury Bill Ordinance and Registered Stocks and Securities Ordinance as amended from time to time.

 A short list of historic reforms – 2015-2017

1. Full scale of competitive auctions of local government securities (Treasury bills and bonds) was introduced in place of 90%-95% private placement system.

2. Bloomberg electronic trading platform was introduced free of charge and required dealers to trade through the platform and to report trade details of large value customer transactions. This platform was arranged by the Bloomberg free of charge.

3. Active Liability Management Act was passed to facilitate restructuring of the debt profile for better management of debt composition and service risks.

4. The US Treasury Department offered technical assistance through a resident consultant to reform debt issuance and management system. It offered services through several consultants arranged by the resident consultant. Drafting a consolidated debt law was one of the assignments. The CB provided secretariat facilities to US consultants. The programme was arranged by the Ministry of Finance through the US Embassy.

5. Expression of interests were called for establishment of a dedicated electronic trading platform for government securities. Cabinet appointed Tender Board and Technical Evaluation Committee commenced the work. The CB allocated funds for the cost of the platform and the US Treasury provided technical assistance.

6. Upon a national budget proposal, the work commenced to set up a debt office at the Treasury to implement the reform agenda. It was initially expected to amend the existing laws to replace the CB’s debt functions with the debt office and to assign exiting debt infrastructure of the CB with the debt office.

Performance on reform initiatives

1. Private placements reintroduced.

2. US Treasury assistance discontinued without deliverables agreed.

3. No news about electronic trading platform and Bloomberg platform.

4. No news about the implementation of the Active Liability Management, except the CB raised additional debt under the limit of the Act.

5. The CB’s  aggressive continuity in the use of debt to fix yield rates/interest rates for driving the monetary policy rather than market-based debt management.

6. Foreign debt in defaulted for the past two years since 12 April 2022.

7. De-facto default of domestic debt by forced restructuring of debt held by EPF and CB.

8.  Bankruptcy of the government and foreign currency crash confronted by the economy and public.

9. Foreign consultants employed during the past two years for the management of debt for the sustainability.

10. The official managers awarded with promotions and brand new independence from the government.

Public concerns

• The government brings new debt management laws in association with those who mismanaged and defaulted debt without any inquiry over the mismanagement and default.

• Reform agenda highlighted above in 2015-17 would have prevented the present catastrophic bankruptcy of the government if it had been implemented orderly. Nobody seems to worry why they were not implemented.

• New laws will help only a new line of debt/government bureaucracy unless the debt market is developed for the transparency and competition with new technology that will promote the price duscovery, liquidity and debt discipline. Nobody seems to worry about conflicts between laws and markets in economics when laws after laws are passed to recover the economy from the crash in 2022.

This article is released in the interest of participating in the professional dialogue to find out solutions to present economic crisis confronted by the general public consequent to the global Corona pandemic, subsequent economic disruptions and shocks both local and global and policy failures. All are personal views of the author based on his research in the subject of Economics which have no intension to personally or maliciously discredit characters of any individuals.)

P Samarasiri

Former Deputy Governor, Central Bank of Sri Lanka

(Former Director of Bank Supervision, Assistant Governor, Secretary to the Monetary Board and Compliance Officer of the Central Bank, Former Chairman of the Sri Lanka Accounting and Auditing Standards Board and Credit Information Bureau, Former Chairman and Vice Chairman of the Institute of Bankers of Sri Lanka, Former Member of the Securities and Exchange Commission and Insurance Regulatory Commission and the Author of 12 Economics and Banking Books and a large number of articles published. 

economyforward.blogspot.com

May 29, Colombo (LNW): State Minister of Defence Premitha Bandara Tennakoon emphasized that safeguarding the safety of school children, especially during weather-related emergencies, is a top priority in the government’s disaster management program. He made these remarks during a meeting at the Disaster Management Centre in Colombo on May 28, after discussions with senior state officials, including District and Divisional Secretaries, Education Ministry authorities, Environment Ministry officials, and INGO representatives.

Tennakoon highlighted the importance of updating and activating district committees to conduct risk assessments and inform the Disaster Management Centre, enabling the preparation of effective contingency plans.

He underscored the significance of the ‘Surakimu’ program, aimed at ensuring the safety of students in the country’s 10,126 schools. Tennakoon proposed the formation of Special School Committees under respective Principals, involving past pupils’ associations and parent-teacher associations to enhance school safety.

To improve disaster preparedness at the school level, plans include training at least two teachers from each school in basic first aid and ensuring the availability of properly equipped first aid kits.

During a discussion with INGO representatives, Tennakoon detailed the progress of active programs, including the ‘Surakimu’ program, and proposed new initiatives to benefit students during emergencies, seeking their assistance in these efforts.

Tennakoon also mentioned plans for consultations with various ministries to address legal barriers encountered during emergency disaster management activities. The meeting was attended by heads of the Disaster Management Centre and National Building Research Organization, along with several senior state officials.