By: Isuru Parakrama

May 25, Colombo (LNW): As Sri Lanka marked 15 years since the end of its civil war, the ongoing impunity and lack of justice for wartime atrocities should be met with scrutiny, emphasised the International Commission of Jurists (ICJ), in a statement issued Thursday (23).

The ICJ urged authorities to ensure real justice for victims and hold perpetrators accountable.

A UN report highlighted the impunity for enforced disappearances and the systematic denial of victims’ rights. The final phase of the war saw serious violations by all parties, yet no independent investigations have been conducted, the ICJ pointed out.

Despite the war’s end, harassment, land seizures, and misuse of anti-terror laws persist, the statement added.

“The final phase of the armed conflict between the Government of Sri Lanka (GoSL) and the Liberation Tigers of Tamil Eelam (LTTE) was replete with serious international humanitarian law and gross human rights violations constituting crimes under international law by all parties. So far, the authorities have failed to conduct independent, impartial investigations into these crimes with a view to ensuring accountability,” the statement read.

It further noted that government accountability mechanisms remain ineffective, emphasising that memorial events for war victims faced heavy surveillance and intimidation.

The ICJ calls on Sri Lanka to uphold its human rights obligations and stop harassing victims and defenders.

Full Statement:

As Sri Lanka marked 15 years since the end of a decades-long armed conflict on 18 May 2024, the International Commission of Jurists (ICJ) deplored the near total impunity that has prevailed, and lack of victim-centred justice and accountability for war time atrocities. The ICJ calls on the responsible authorities to reverse course and take measures that will provide real access to justice for the conflict’s numerous victims and survivors and bring those responsible for crimes under international law to account.

The bleak picture is reinforced by the UN Office of the High Commissioner for Human Rights (OHCHR) in a report released on 17 May 2024, titled Accountability for Enforced Disappearances in Sri Lanka. The report notes the near total impunity enjoyed by perpetrators of widespread enforced disappearances over four decades and a systematic failure to account for the fate and whereabouts of victims.

“As made clear by the OHCHR report, the families of the disappeared have been forced to wait indefinitely to learn the truth about their loved ones and systematically denied their rights to the truth, justice and reparations. These families are entitled to answers and to see the perpetrators of heinous crimes committed against their loved ones brought to justice”, said Melissa Upreti, Director of the ICJ’s Asia-Pacific Programme.

The final phase of the armed conflict between the Government of Sri Lanka (GoSL) and the Liberation Tigers of Tamil Eelam (LTTE) was replete with serious international humanitarian law and gross human rights violations constituting crimes under international law by all parties. So far, the authorities have failed to conduct independent, impartial investigations into these crimes with a view to ensuring accountability.

While the armed conflict may have come to an end, in the North and East many families of the disappeared, former LTTE combatants, journalists, and human rights defenders have continued to face harassment, intimidation and surveillance in an atmosphere of heavy militarisation.

There have also been arbitrary seizures of land and Hindu religious shrines by some Buddhist clergy with the support of the military and other government authorities. The Prevention of Terrorism Act continues to be deployed in violation of the rule of law.

Government established accountability mechanisms such as the Office of Missing Persons (OMP) and the Office for Reparations have been ineffective and dismissed by victims and their representatives.  Similarly, a draft Bill proposing the establishment of a Commission for Truth, Unity and Reconciliation which was gazetted earlier this year lacked transparency and was not adequately consultative, gender-responsive or victim-centered.

Activities held in remembrance of the victims of the war last week were met with heavy surveillance and intimidation by Sri Lankan law enforcement authorities who portrayed these memorialisation events as “promoting the revival of terrorist activities.”

“The high-handedness of law enforcement authorities aimed at preventing freedom of expression and freedom of peaceful assembly of those who have suffered greatly due to war time atrocities is in violation of Sri Lanka’s international legal obligations and fundamental rights guaranteed by the Sri Lankan Constitution,” said Melissa Upreti.

The ICJ calls upon Sri Lanka to respect, promote and fulfil its international human rights law obligations by taking genuine steps to advance accountability and justice and putting an end to the harassment and intimidation of victims and human rights defenders.

May 25, Colombo (LNW): Faced with decreasing revenues and constrained access to financial markets, governments need to address the challenge of meeting extended cash needs for daily expenses for public sector services 

Government Treasury is compelled to curtail spending further in the second quarter of this year as the day’s revenue collection is far below the daily expenditure creating a cash flow problem, finance ministry sources confirmed.  

There is in urgent need of tackling treasury cash flow issue as its monthly collection in tax revenue is inadequate to pay public sector salaries, pension and samurdhi welfare, fertiliser, medicine, and other administration costs. 

Treasury cash flow management process controls the annual budget approved by Parliament for 2024 financial year into an implementable cash flow.

The endowment flows include cash inflows in the form of revenue and borrowings and cash outflows in the form of expenditure, which comprise both recurrent and capital payments including debt service payments, a senior official of the ministry said. 

The Department of Treasury Operations is encountering a challenging task in handling cash flow this year.

 This difficulty arises from the limitations imposed by existing laws, which prohibit obtaining loans and printing money. 

Moreover, government spending has escalated, attributed to both welfare and recurrent expenses. However, it is noteworthy that effective financial management practices are underway in the country.

At present a sum of Rs 14.67 billion is needed to meet the day’s expenditure while the daily total receipt is Rs 8.42 billion, ministry data and computation showed indicating a shortfall of Rs 6.25 billion, finance ministry data shows.      

The 19 percent VAT hike and removal of VAT exemptions this year will reduce the consumption of people grappling to survive in high cost of living with their limited income, several economic analysts said.

The tax rate increase and the threshold decrease for businesses liable for VAT have brought more items under VAT at a higher percentage affecting all the people burdening   the poor and vulnerable groups. 

The expected revenue of Rs1.4 trillion from VAT was an over estimation which cannot be achived under present economic situation, an economic expert claimed. 

The increase in corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and Customs import duty is unlikely to generate the estimated revenue, he added.  

Under this set up the Government has increased the 2024 tax revenue target to Rs. 2.75 trillion from the 2024 budget estimate of Rs. 2.59 trillion.

May 25, Colombo (LNW): Sri Lanka is to prove adequate progress in debt restructuring, the fulfillment of prior actions and implementation of EFF-supported programme that would confirm multilateral partners financing contributions to receive the approval of IMF executive board

Mired debt negotiations may lead to delays in restructuring, possibly impacting future IMF-EFF disbursements and hampering economic recovery efforts

However Finance Ministry is hopeful that they can reach a settlement on debt restructure focusing on the probability for reductions in principal and interest rates or extensions of debt maturities before the first half of the year. 

International Monetary Fund’s (IMF) executive board at their upcoming meeting will consider the implementation of prior actions, the EFF-supported programme, and assess the progress in debt restructuring to unlock the US$337 million third tranche of the EFF, Julie Kozack, Director of Communications at the IMF said. 

Julie Kozack told a press briefing in Washington on Thursday 16 that Sri Lanka’s negotiations with external private creditors and to implement the agreements in principle with Sri Lanka’s official creditors are yet to conclude 

The domestic debt operations are largely completed she said adding that  the initial debt restructuring negotiations with external bondholders ended in mid-April without an agreement and discussions  are continuing with a view to reaching agreement in principle. 

With respect to Sri Lanka’s economic performance, macroeconomic policies in Sri Lanka are starting to bear fruit.

Commendable outcomes include a rapid decline in inflation, robust reserve accumulation, and initial signs of economic growth, while also preserving stability in the financial system. Overall, program performance has been strong. Julie Kozack said.  

Sri Lanka is still to fulfill 30 percent of the IMF supported economic reform programme commitments due in April 2024, with over half of these “not met” commitments designed to increase transparency ‘public finance data analysis report revealed. 

According to latest Finance Ministry report, it has to finalise a settlement with bondholders, although both sides are close to reach an agreement. 

The government has proposed an Internal Rate of Return (IRR) of 9.7percent and the bondholders’ have suggested a11.51 percent. 

Both the initial and revised proposals specify that bondholders are unwilling to reduce the interest accrued during the suspension of debt repayments. In both proposals, there have been no haircuts on $ 1,678 million of accumulated interest. Only 4 percent interest rate has been proposed for 2024-2028.

May 25, Colombo (LNW): The current network systems of government offices are to be used to create and deliver financial-related content to targeted audiences, which are the youth and women  ..

Central Bank of Sri Lanka (CBSL) states that in order to implement the actions under its ‘Financial Literacy Roadmap’ for the country, it plans to use 

The regulator said that before implementing the programme, the current network will be analysed and modified to be effective in delivering financial literacy.

The Central Bank is to take a national level financial literacy initiative as the most appropriate tool to reach higher financial inclusion through the improvement pf financial literacy among Sri Lankans.

At the launch of the Financial Literacy Roadmap 2024-2028 in Colombo on Tuesday 21, it has been transpired that there was a significant gap between satisfactory financial knowledge and lacking financial behavior among Sri Lankans

The CBSL recently launched its publication, “Financial Literacy Roadmap of Sri Lanka 2024–2028,”. The roadmap has been developed as part of the “Financial Literacy and Capacity Building” pillar of the National Financial Inclusion Strategy.

In its initiative to increase financial literacy under the National Financial Inclusion Strategy, the Central Bank said it expects to create synergies among stakeholders and exciting Financial Literacy Service providers, allowing them to work together and maximise the impact while ensuring effective resource allocation.

Under the four-pillar action plan of the Central Bank, the regulator said under the first step will mostly consist of actions designed under the effective coordination and ‘Harmonised Content Strategic Priority’.

Also, the CBSL said that the existing financial literacy stakeholders, such as regional offices of the CBSL, the community health network of the MoH, short message services used by RFSPs (Regulated Financial Service Providers), and educational institutes, have well-established networks used for day-to-day operations that can be used in delivering financial literacy content to targeted audiences.

The CBSL will bring in modifications to the existing networks before implementing the interventions in order to use them as financial literacy delivery channels under the roadmap.

The regulator further said that a framework is already in place to ensure the success of the roadmap, however, in order to make this national effort a success, high-level support from all national-level stakeholders is required

May 25, Colombo (LNW): Sri Lanka’s insolvent companies are to be allowed to continue operating following the government’s decision of enabling creditor banks to avoid declaring bankruptcy of such entities, finance ministry sources disclosed.  

Business owners with insolvent enterprises have been given an opportunity to renegotiate and/or extend the terms of the loans taken by them from banks although permitting these firms to continue operating poses a significant impediment to growth and economic efficiency.   

These firms are to be made efficient or productive to remain competitive in the local market at a time where Sri Lanka is emerging from the economic crisis to a stronger and more resilient economy, a high official of the ministry said. 

The challenging macroeconomic environment that prevailed during the recent years disrupted many business entities, limiting their income-generating capabilities and hence forcing them to default on timely payments of loans, which resulted in impairing the recovery process of licensed banks (LBs).

As evidenced by the increase of non-performing loans of LBs from 5.2 per cent at end-2019 to 13.6 per cent by the end of 3 Quarter in 2023, which marginally improved later to 12.8 per cent by the end of 2023, the credit quality of the banking sector has deteriorated significantly, Central Bank’s economic review report 2023 revealed.  

The Central Bank has recently issued guidelines to Business Revival Units (BRU ) set up in banks for  the using of  financial and/ or operational restructuring tools and techniques or any combination thereof to revive distressed but viable businesses.

Financial restructuring tools would include debt forgiveness, debt rescheduling including grace periods for the payment of principal and interest, adjustment of interest rates, maturity extensions, and provision of new financing, including interim financing and exit financing, it added..

Under operational restructuring, the BRU is to consider proposing fundamental changes in the business’s operations or assets to restore commercial viability, developing a new business plan/strategy.

It is also aimed at enhancing operational efficiency and profitability of such businesses, improving cash management systems, reviewing pricing strategy, and reviewing customer retention and/or acquisition strategies. 

A framework for corporate workouts is a newly introduced mechanism as an overarching structure for a mutually agreeable business revival plan between a borrower and multiple banks as creditors. 

Since this is a mutual agreement between parties, a court intervention would not be required to loan recovery , CB pointed out

As per the proposed business revival mechanism of LBs, it is expected that distressed borrowers who are engaged in business activities will be able to revive their businesses with the guidance of LBs.

it will  improve cash flows will be utilised to repay their non-performing loans and thereby improving asset quality of the banking sector, Central Bank report indicated. .

Further, with the improvement in the macroeconomic environment of the country, the revival of businesses, especially the Micro, Small & Medium Enterprises (MSMEs), would promote sustainable economic growth and employment opportunities and hence, contribute to the sustained development of the national economy, it predicted .

May 25, Colombo (LNW): The inauguration of the Teleview Plus OTT content streaming platform took place recently at the Nelum Pokuna Theater in Colombo. The event included the recruitment of new subscriber members and the awarding of pioneer membership certificates by the Honorable President’s Secretary, Mr. Saman Ekanayake.

Several distinguished individuals received their founder subscriber membership certificates during the event, including:

• Ronald Perera, President’s Attorney and Chairman of Sri Lanka Insurance Company
• Upul Jayasuriya, Executive Member of the Asia Pacific Bar Association
• Tillakaratne Dilshan, International Cricketer
• Professor Jayantha Balawardena, Chancellor of Uva Wellassa University
• Neville Perera, Chief Executive Officer of Sri Lanka Urogenital Institute
• Dr. W. Jinadasa, Owner of the largest number of tea factories in Sri Lanka
• Nalaka Hewamadduma, International Motivational Preacher
• Harsha Kumara Navaratne, High Commissioner of Sri Lanka to Canada
• Sunil Gamage, Japan Sri Lankan Consul
• Umali Thilakaratne, Young Actress
• Rithma Weerawardena, Young Singer
• Aditya Weliwatta and Lakmini Udawatta

This significant event marked the launch of Teleview Plus, aiming to provide a wide array of content to its subscribers while recognizing the contributions of its pioneering members.

1. President Ranil Wickremesinghe today inaugurated the Clinical Training and Research Block at the Jaffna University’s Faculty of Medicine. Built at a cost of Rs. 942 million, this is the first new construction at the university in 46 years, according to the PMD.
2. The National People’s Power (NPP) has decided to challenge the Economic Transformation Bill recently tabled in Parliament by the government, before the Supreme Court. On May 22, the Economic Transformation Bill and the Public Financial Management Bill were presented to the Parliament for the first reading. The government says the two significant bills are aimed at bolstering the country’s economy.
3. The Joint Committee of Democratic Unions of Sri Lanka confirmed its support for Cuba’s declaration demanding its fair elimination from the list of states sponsors of terrorism created by the United States. The organization confirmed in a statement that adding Cuba to the arbitrary list has political purposes and causes serious economic problems for the Cuban people, despite which Cuba resists and is an example for the people who fight against imperialism.
4. The Central Bank of Sri Lanka (CBSL) states that in order to implement the actions under its ‘Financial Literacy Roadmap’ for the country, it plans to use the current network systems of government offices to create and deliver financial-related content to targeted audience, which are the youth and women. The regulator said that before implementing the programme, the current network will be analysed and modified to be effective in delivering financial literacy.
5. The High Commission of India in Colombo has organized a special exhibition titled ‘Buddham Sharanam Gacchami,’ which showcases works on the life of Lord Buddha by iconic masters of modern Indian art. This exhibition is part of the Buddha Rashmi National Vesak Festival held at Seemamalakaya, Gangaramaya Temple in Colombo.
6. One thousand two hundred and eighty nine (1289) naval personnel, who were absent without leave (AWOL), were legally discharged during the General Amnesty period declared from 20th April to 20th May 2024. This General Amnesty was applicable only for sailors (except all Artificers, Professional Medical and Professional Dental sailors) who have been absent without leave, to obtain official discharge.
7. The Sri Lanka High Commission in Malaysia has successfully facilitated the repatriation of 1,608 Sri Lankan people who have migrated in an unlawful (or illegal) manner. This operation, conducted in coordination with the Malaysian Government’s Migrant Repatriation Programme over a two-month period from 01 March 2024 to 30 April 2024, the Sri Lanka High Commission in Kuala Lumpur, Malaysia said.
8. State Defence Minister Pramith Bandara Tennakoon yesterday said six deaths and 11 injuries have been reported as a result of tree from May 19 and the adverse weather condition has affected 34,880 people of 9,616 families in 18 districts. He said the number of tree falls has been increased recently and special focus will be laid on the existing risk of falling trees.
9. One person who allegedly maintained connections with the four Sri Lankans arrested in India on suspicion of having links with ISIS was arrested in Maligawatta. The Criminal Investigation Department says the suspect named Amir, was arrested in Colombo.
10. Sri Lankan batsman Kusal Mendis and bowler Asitha Fernando have joined the Sri Lankan T20 team currently in the U.S. to take part in the upcoming ICC Men’s T20 World Cup. The two Sri Lankan cricketers were unable to leave the country with the team initially, as their US visas had not been approved in time. They were requested for more information related to an issue, according to Sri Cricket (SLC) officials.

May 25, Colombo (LNW): The Sri Lanka Air Force has announced that three helicopters are on standby to respond to emergencies caused by adverse weather conditions. Air Force Media Spokesperson Group Captain Dushan Wijesinghe informed the Daily News that rescue teams are ready to respond immediately upon receiving information about emergencies. These teams will quickly reach any affected areas, deploying helicopters for rescue operations as necessary.

The helicopters, which include two Bell 212s and an Mi-17, are stationed at the Katunayake, Ratmalana, and Hingurakgoda Air Force Bases. Group Captain Wijesinghe emphasized that the Air Force is prepared to act on notifications from the Disaster Management Center to ensure prompt emergency evacuations and rescue operations.

May 25, Colombo (LNW): State Defence Minister Pramith Bandara Tennakoon announced yesterday that six deaths and 11 injuries have been reported due to tree falls and adverse weather conditions since May 19. The weather has affected 34,880 people from 9,616 families across 18 districts.

Minister Tennakoon noted an increase in tree falls and emphasized the need for special focus on the existing risk of falling trees. He called for the support of the Road Development Authority, Provincial, and Local Government authorities to mitigate the high number of tree falls on roads. Speaking at a discussion on the weather-related emergency situation at the Emergency Operation Centre in Colombo, Tennakoon revealed plans to launch a national program, “Surakimu,” as a preventive measure.

The “Surakimu” program will prioritize the safety of students at school premises. Tennakoon also plans to formulate a national policy, guided by a special committee, to address tree planting beside roadsides and to educate the community on this issue.

Additionally, the Minister mentioned that measures will be expedited to control flooding in low-lying areas caused by unsafe and unauthorized constructions. He praised the swift actions taken by the National Disaster Management Centre, State Departments, District Commissioner’s Offices, Divisional Secretariats, Grama Niladhari, Development Officers, Relief Service Centre Officers, and especially the Armed Forces, Police, and Civil Security Department in providing relief to those affected by the disaster.

Officials present at the event included DMC Director General Major General Udaya Herath, Director General of the National Building Research Organisation Asiri Karunawardena, Director General of the Met Department Athula Karunanayake, and Additional Secretary to the DMC Gamage Dharmathilaka.

May 25, Colombo (LNW): A special gazette has been issued mandating that all banks, financial institutions, and various government institutions must regularly inform the Inland Revenue Department (IRD) of their transactions starting from July 1.

According to Extraordinary Gazette Notice 2376/25 dated March 21, 2024, the Minister of Finance, Economic Stabilization, and National Policy has directed that regular information be provided to the Commissioner General of Inland Revenue (CGIR).

The gazette notification specifies that the Registrar General’s Department, the Department of the Registrar of Companies, the Motor Traffic Department, and officials from any government agency responsible for awarding contracts for goods, services, or consultancy and non-consultancy services must provide information to the IRD.

In the future, this information should be submitted to the Commissioner General of Inland Revenue through a web-based platform or another electronic platform approved by the CGIR. Further details regarding the submission process will be announced later. The gazette also requires banks and non-bank financial institutions regulated by the Central Bank of Sri Lanka, any financial institution, and the chairman of the Colombo Stock Exchange to comply with this reporting requirement.

For more information, contact the Inland Revenue Department’s call center at 1944.