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Sri Lanka: New Bill to establish “Commission for Truth, Unity and Reconciliation” lacks credibility and unlikely to bring accountability

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The ICJ considers the government’s proposed bill to establish a Commission for Truth, Unity and Reconciliation unlikely to advance accountability for perpetrators and justice for victims and survivors of the 26-year-long armed conflict that ended in 2009 and involved widespread atrocities.

The ICJ is concerned that the lack of consultation with victim communities and the continued neglect of their demands deprive the Bill of legitimacy.

A draft Bill on Commission for Truth, Unity and Reconciliation was gazetted on 1 January 2024, to establish the Commission,  amidst a climate of impunity for past human rights violations and abuses and intimidation of victim communities in the North and East of the country.  

“Considering the repressive political climate in Sri Lanka, and the absence of the conditions that are necessary to ensure the success of the proposed Commission for Truth, Unity and Reconciliation, the Bill appears to be more of a legislative manoeuvre aimed at deflecting the attention of the Human Rights Council and removing Sri Lanka from further scrutiny rather than a genuine accountability measure.” said Melissa Upreti, ICJ’s Asia Director.    

The Bill suffers from a lack of transparency regarding the consultation process and non-acceptance by victim communities.  

If adopted, it would empower the Attorney-General to prosecute cases where the Commission makes a finding of responsibility for an offence. The ICJ is concerned that in the past the Attorney-General’s office has assumed potentially conflicting dual roles of legal advisor for the State and prosecutor of offences allegedly committed by State officials. The ICJ has previously noted how the Department had mishandled cases relating to serious human rights violations and abuses which has contributed to a climate of mistrust. The ICJ recalls that the years since the end of the conflict have been marked by near total impunity for conflict era crimes, owing to the failure of the Attorney-General’s Department to act to hold to account those responsible for serious crimes under international law.

The Bill provides that appointments to the Commission will be made by the President upon the recommendation of the Constitutional Council. The ICJ has previously noted that the governing party holds a majority in the Constitutional Council and that a majority of members are parliamentarians with only three  members appointed from outside. Further, a representative of the smaller political parties (including parliamentarians representing the North and East) is yet to be appointed to the Council. The ICJ is concerned that these arrangements are conducive to creating a Commission that lacks independence and may be subjected to political pressures and considerations in carrying out its work.  The situation is exacerbated by the Constitutional Council approving the appointment of the current Acting Inspector General of Police who had in December 2023 been held directly responsible for torture by the Supreme Court of Sri Lanka.

The Bill would further authorize the proposed Commission to seek the assistance of the police to conduct investigations and liaise with the National Authority for the Protection of Victims of Crime and Witnesses, which in turn depends on the police to provide support for the protection of victims and witnesses. However, a number of police officials have allegedly been responsible for recent cases of torture and ill-treatment and extra judicial killings. The government’s failure to initiate thorough and impartial investigations into these cases and to bring perpetrators to justice has deepened the public’s mistrust of the police and prosecuting agencies.

Successive UN Human Rights Council Resolutions on Sri Lanka have called for the establishment of transitional justice mechanisms with the active participation of all stakeholders, including women who have been at the forefront in leading victim demands for accountability, particularly for cases of enforced disappearance. Yet, protesting mothers and female family members of the disappeared are routinely detained, intimidated or put under surveillance and their voices suppressed.

The Bill lacks also provisions that are gender responsive and makes the establishment of mechanisms and procedures to address women’s concerns discretionary.

Existing transitional justice institutions such as the Office of Missing Persons (OMP) and the Office for Reparations have been ineffective. As underscored by the UN Office of the High Commissioner for Human Rights, the OMP has failed  to earn the trust of victims and their representatives.  As recently  observed by the High Commissioner, there has been little to no development regarding cases of past human rights violations and abuses.

“The victims of Sri Lanka’s 26-year armed conflict, replete with atrocities, have been forced to wait too long to learn the truth about their loved ones and to be granted justice. When the UN Human Rights Council considers a new resolution on Sri Lanka later this year, it must avoid blind acceptance of Sri Lanka’s flawed transitional justice process and institutions and adopt an approach that genuinely puts the interests of victims and survivors first,” added Upreti.

Background

The draft Bill provides for the establishment of the Commission with a Head Office based in Colombo and Regional Offices as necessary (clause 2). The Commission will have between seven to twenty-one members, who are to be appointed by the President upon recommendation by the Constitutional Council (clause 3). The term of the Commissioners is five years (unless removed earlier) and the President can extend their term on an yearly basis for an additional two years (clause 9). The Commission may conduct public or closed sittings as necessary (clause 7).

The stated objectives of the Commission are to investigate, inquire and make recommendations in respect of complaints or allegations or reports relating to damage or harm caused to persons or property, loss of life or alleged violation of human rights which occurred during the conflict in the Northern and Eastern Provinces between 1983 to 2009 or connected to such period or its aftermath and has a mandate to promote truth telling and make recommendations for reparations, and non – recurrence (clause 12). If it appears to the Commission that an offence under any Sri Lankan law has been committed it may refer the matter to the relevant law enforcement or prosecuting authorities for further investigation and necessary action (clause 13 (zd)). The Commission does not have the mandate to determine civil or criminal liability of any person (Clause 16 (1)) and instead the onus is on the Attorney-General to institute criminal proceedings regarding an offence in Court based on material collected by the Commission (clause 16 (2)).

The Bill also provides for the establishment of a Victim and Witness Protection Division (clause 28) and a Data Management Division (clause 29). The Commission may also appoint any mechanisms and procedure to address requirements related to women, children, persons with disabilities and disadvantaged groups and advisors relating to specific issues (clause 30).

The Bill also provides for the appointment of an advisory panel to advise the Commission on matters referred to the Panel (clause 32). This panel is to consist of a minimum of ten members appointed by the President on the Commission’s recommendation. Clause 39 of the Bill states that within one month of the interim report of the Commission being published the President shall appoint a monitoring committee to implement the findings of the report. Clause 40 states that such Committee be comprised of 11 members, of which six members are to be recommended by the Constitutional Council while the others are members ex-officio. Ex-officio members include the Secretaries of the Ministries of Defence, Justice, Law & Order, Finance, Public Administration & Women, Child Affairs and Social Empowerment or their nominees.  The Committee is expected so submit bi-annual plans evaluating the implementation of recommendations of the TUR Commission and other previous Commissions of Inquiry.

Clause 49 of the Bill states that the Commission can defer its investigation regarding any disappearance of a person/s if requested to do so by the OMP until such time it can be resumed without compromising inquiries conducted by the OMP.

In September 2023, the ICJ joined eight other international human rights organizations in expressing their grave reservations  about the proposed Truth, Unity and Reconciliation Commission and setting out prerequisites to be addressed before appointing any new Commission. The concerns relate to Sri Lanka’s legacy of failed commissions, lack of a conducive environment and confidence building efforts, lack of meaningful consultations with victim communities, the failure of domestic transitional justice institutions, and the blocking of prosecutions. None of these concerns have been addressed to date, which bring into question the newly proposed Commission’s likelihood of serving as an effective mechanism for accountability.

Business tycoon Harry Jayawardena’s DCSL acquired of local operations of Heineken

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Business tycoon Harry Jayawardena-controlled Distilleries Company of Sri Lanka (DCSL) has acquired the local operations of global beer giant Heineken for Euro 12 million or over Rs. 4.2 billion.

In a disclosure to the Colombo Stock Exchange, DCSL said it acquired 99.4% of the issued capital of Heineken Lanka Ltd., from Heineken Asia Pacific Pte. Ltd. (Heineken) for a total consideration of Euro 12 million.

With this acquisition, Heineken Lanka Ltd., will change its name to DCSL Breweries Lanka Ltd. to reflect the new ownership. 

The company will continue brewing beer under world-renowned international brands such as Heineken, Tiger, and Anchor under a Trademark Licence Agreement signed with the Heineken Company. It will also continue to brew its own brand, Bison beer.

“This acquisition and the continued production of world-renowned Heineken brands under license will ensure that consumers can continue to enjoy these brands,” DCSL said. 

It also said the DCSL Group, a pioneer in the liquor industry in Sri Lanka with well over a century of producing quality products, will now add beer to its diverse product portfolio.

The impending deal was first announced by DCSL in November last year. Fitch Ratings in November said Heineken is a distant second in Sri Lanka’s beer market for now, but believes DIST has the industry know-how, market access and financial strength to elevate Heineken’s operations to a level that could weigh on Lion’s market share.

It said a large capacity expansion at Heineken Lanka would be required to compete effectively with Lion. Fitch estimated the expansion will require significant capital outlay and at least two to three years to complete. 

Fitch said it believes DIST has the financial strength to fund the expansion, with its annual free cash flow, excluding dividends, averaging Rs. 10 billion-12 billion. DIST, as the largest spirits manufacturer in the country, already has extensive market access covering all forms of retail channels, providing easy market penetration compared with a new entrant.

Fitch said it expects the acquisition to be positive for DIST as it will help the company to strengthen its market position with a presence in both hard and soft liquor markets. 

The acquisition will also allow DIST to take advantage of the lower excise duties applicable to beer on an alcohol-equivalent basis.

 There has been a shift to beer from hard liquor in recent months due to the significant increase in excise duties. DIST could also benefit from the revival in Sri Lanka’s tourism industry, as beer is more popular among tourists than locally made hard liquor.

Hayleys Solar sets national record for rooftop solar PV capacity

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Hayleys Solar, the renewable energy arm of Hayleys Fentons recently surpassed 150MWp of installations, a national record for rooftop solar PV capacity in Sri Lanka, setting a new milestone in the island’s transition to renewable energy.

By March 2023, Hayleys Solar crossed its milestone of 125MW and has continued to add new rooftop solar capacity to its portfolio, in various locations across the country. 

Its 150MWp of solar capacity is enabling Hayleys Solar to save close to 151,835 tons of carbon dioxide (CO2) emissions released to the air every year.

Expressing his views, Hasith Prematillake, the Managing Director of Hayleys Fentons stated: “This achievement is the largest to be installed across the island by any single entity and supports us to empower the community making solar solutions closer to all via accessibility and affordability

Hayleys Solar continues to establish solar experience centres island-wide, adding to its portfolio of experience centres in Matara and  Jaffna with new launches in Nawala, Katunayake, Kurunegala and Kandy soon, This will make it easier for people from different communities to access and learn about solar solutions.

These centres offer a comprehensive range of applications, including rooftop PV systems, batteries, and inverters, alongside live demonstrations of Solar-powered Water Pumps, Lighting systems and Solar Powered Hot Water Systems.

With high electricity tariffs, Hayleys Solar offers easy payment plans and loan facilities to support affordability for households and businesses to transition to solar.

Roshane Perera, the Executive Director and CEO of Hayleys Solar said, “By far, Hayleys Solar has become a top of mind household name and plays a major role as a trendsetter in the Solar energy sphere as the undisputed market leader. 

Throughout our remarkable journey, we have empowered a diversified clientele including world-renowned organisations and thousands of households . We are very grateful to our loyal clientele who has placed their trust with us”

“We are also in the process of installing the largest battery of 2MWh which will be commissioned by January 2024. I believe it is our responsibility as the market leader to focus on innovation and bring in the latest technologies to  drive growth to expand market share in this sector.”

In 2022, amid challenges in power availability, Hayleys Solar enabled the facilitation of a massive project of installing solar at 830 telecommunication towers across Sri Lanka, which supported the community to stay connected.

With its ongoing commitment to adding rooftop solar capacity to empower the community with electricity and energy self-sufficiency, Hayleys Solar is dedicated to improve the livelihoods of many Sri Lankans for generations.

Sri Lanka’s Gem Industry to boom in the Next Two Years 

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The government has pledged its fullest commitment to attain significant advancements in Sri Lanka’s gem industry within the next two years.

To achieve this goal, the government intends to implement a new program. Emphasizing the program’s positive impact on both the national economy and industry stakeholders, President Ranil WIckremasinghe highlighted plans for extensive modernization within the gem and jewellery sector.

President Wickremesinghe underscored the importance of not only providing tax concessions but also transforming the gem and jewellery industry into a pivotal sector that contributes significantly to the country’s foreign exchange earnings. 

The President conveyed these aspirations during his attendance at the opening ceremony of the “Gem Sri Lanka 2024” Gem and Jewellery Exhibition organized by the China Fort Gems and Jewellery Trade Association yesterday (11).

The exhibition, hosted at the Bentota Cinnamon Bay Hotel, will run until January 13. President Wickremesinghe, inaugurating the event, actively participated in exploring trade stalls and engaging in friendly conversations with gem industrialists to better understand their challenges

Addressing the ceremony, President Wickremesinghe emphasized the need for a new economic system in the country that is geared towards exports, aiming to generate foreign exchange and foster economic growth.

In the forthcoming two months, diligent efforts are underway to craft this policy framework, signalling a significant stride toward the prosperity of our nation’s gem industry. Sri Lanka, with its vast potential in gems, stands poised for remarkable progress.

As Ian Fleming once immortalized diamonds by saying “diamonds are forever,” we proudly affirm that Sri Lanka’s gems, including the enduring sapphires, share a timeless legacy, he said.

Reflecting on the global landscape, it’s notable that the Chinese market, particularly represented by the Shenzhen Jewellery Association, is still in its early stages. 

 The government’s focus on gem re-export, value addition, and augmenting foreign exchange inflows necessitates a modernized gem industry. 

Recognizing the associated challenges, it’s crucial to address them strategically. While tax relief has been a customary request, merely granting concessions without substantial sectoral growth is inadequate.

 The key lies in concurrent development and strengthening of economic foundations for everyone involved in the industry, alongside fostering knowledge enhancement for gem polishers.

 The restoration of essential services, facilitated by foreign exchange, marks a significant achievement. However, it’s crucial to note that this foreign exchange is sourced from institutions like the World Bank and the support of nations, such as the American government’s provision of fertilizers in 2022.

EPF embarks on diversification to boost returns

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The Employees’ Provident Fund (EPF) is set to explore methods for diversifying its investment portfolio with the aim of generating a higher risk-adjusted rate of return while ensuring the overall safety of the overall fund, Central Bank announced.. 

“As Sri Lanka’s largest superannuation fund, with the Central Bank of Sri Lanka as its custodian, the EPF showcased resilient financial performance throughout 2023, navigating challenges such as economic uncertainties and the impact of the domestic debt optimization (DDO) operation,” the Central Bank Governor Nandalal Weerasinghe said.

He made these revelations when he unveiled the ‘Annual Policy Statement 2024’ on Wednesday10.  The fund effectively carried out the provision and facilitation of refund payments, member-related services and various other services despite the obstacles.

 Looking ahead, the EPF focuses on improving operational efficiency to deliver efficient and effective services to its stakeholders. 

A key initiative involves implementing of a near-paperless operating system equipped with real-time document scanning to enhance service quality. 

Additionally, efforts to strengthen the electronic collection procedure, providing multiple payment avenues for employers, will continue to offer flexibility. 

He said a comprehensive Information and Communication Technology (ICT) solution is on the horizon for the EPF to re-engineer and modernize the existing process. 

The Central Bank of Sri Lanka (CBSL) plans to modernise operations of the Employees’ Provident Fund (EPF) through digital enhancements and diversify the fund’s investment portfolio to generate higher risk-adjusted returns.

CBSL said in its Annual Policy Statement for 2024 that the EPF will go “near-paperless” in 2024, with a number of technological enhancements also on the cards.

“Going forward, the EPF is committed to enhancing operational efficiency to deliver efficient and effective services to its stakeholders. Service quality is to be improved through the implementation of a near-paperless operating system with real-time document scanning,” he added. 

The initiatives taken to strengthen the electronic collection procedure by providing multiple payment avenues would continue to provide more flexibility to employers, the bank said.

“A comprehensive ICT solution would also be implemented at EPF with the view of re-engineering and modernising the existing process. EPF is to seek avenues to diversify its investment portfolio to generate a higher risk-adjusted rate of return while ensuring the safety of the overall fund,” CBSL said.

The island nation’s largest pension fund has almost 21-million member accounts including 18.3 million non-contributing accounts due to some members having multiple number of accounts. As of end-2022, the fund is worth 3.38 trillion rupees or 10.6 billion US dollars.By end 2022, a majority — 95.7 percent — of this was in government securities, while 84.1 billion rupees was invested in listed companies in the Colombo Stock Exchange, according to official data

SLECIC to the Fore of Sri Lanka’s Economic Turnaround 

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Sri Lanka Export Credit Insurance Corporation (SLECIC) has recorded a historically highest turnover of Rs. 450 M for the Year ended 31st Dec 2023. During the year it has targeted discerning exporters to mitigate their Buyers & Country risk. Being the sole Export Credit Insurance organization in Sri Lanka owned by the Government of Sri Lanka had extended its services to the credit Exporters and indirect exporters to cover their risks as well as to finance their operations by way of Pre & Post shipment guarantees. In addition to the insurance policies they offer Carnet guarantees enabling exhibitors to showcase their products globally in collaboration with International Chamber of Commerce. So far mainly the gem & jewelry trade has been benefitted from this.

Being one of the profitable state owned enterprises, SLECIC has Contributed Rs.500 M to the Treasury as a Levy in 2023. This is in addition to taxes of Rs. 290 M  for the year. This is a much needed boost for the Economic growth of Sri Lanka.

Despite down trend of the USD parity rate and the volumes of exports in 2023 this achievement is creditable. SLECIC will target to enhance its market coverage by extending its support to the SME s at grass root level by partnering with the Industrial Development Board, where they spread the awareness among rural industries & Exporters.

Looking Forward, SLECIC Chairman / Managing Director Mr. Senarath  Devendra has commented that they have strategised a road map and drawn a Corporate Plan for the next 5 years. He is confident that with introduced marketing initiatives, SLECIC has the potential of increasing the revenue by at least 50% in the next full year 2024, since the achievement in 2023 was only for the eight months.  Further, he is expecting to kick start the guarantee business collaborating with commercial banks in the coming year, facilitating our direct & indirect exporters for their financing requirements.    

Chinese Government Boosts Sri Lanka’s Education: School Uniforms and Digital Transformation

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January 12, Colombo (LNW): Education Minister Dr. Susil Premajayantha announced that school uniforms for students will be distributed before the commencement of the new school year on February 19, 2024. This assurance comes as a result of a significant grant from the Chinese government, covering 80% of the total fabric requirement for school uniforms.

Initially, the Chinese government had agreed to provide a 50% grant, which was later increased to 70% through the direct intervention of Minister Premajayantha. The grant has now been elevated to 80%, with the Chinese Ambassador to Sri Lanka, Xi Shang Hung, officially handing over the first batch of school uniform clothes to the Minister on January 11 at the Ministry of Education.

The Minister disclosed that the first batch, comprising 5.8 million meters of uniform cloth, has already arrived in Sri Lanka, and the second batch is expected by February 4. To ensure uniform quality for all students, the government will purchase the remaining 20% of the school uniform fabric directly from the Chinese manufacturer.

Distribution efforts for the received cloth have commenced, starting from January 4, and will cover 313 education offices. The Minister assured that the government will facilitate the importation process through various legalized corporations.

Expressing gratitude to the Chinese government, Minister Premajayantha highlighted the significant economic relief provided by the grants, saving approximately five billion rupees during challenging economic times in the country.

In addition to the school uniform support, Minister Premajayantha announced that the Chinese government will extend technical and financial assistance for the digitization of 3,000 schools, covering all institutions with Advanced Level subject streams.

Dinesh Gunawardena Launches 2024 Decentralized Budget Program for Nationwide Development

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January 12, Colombo (LNW): In a pivotal step towards comprehensive national development, Prime Minister Dinesh Gunawardena spearheaded the inaugural meeting at the Parliament complex on January 11th, marking the initiation of the development programme under the 2024 decentralized budgetary allocation. Covering all districts across the country, this strategic initiative aims to identify and implement relevant development projects through regional and district coordination committees.

During the meeting, it was emphasized that proposals at the district level should be submitted by January 31, 2024, with approved projects scheduled for completion before July 31 of the same year. The decentralized budget program allocates a total of 11,250 million rupees for projects across all 25 districts. Oversight of the entire program falls under the purview of the Cabinet Sub-Committee, led by Prime Minister Dinesh Gunawardena. Weekly reviews at regional and district levels, along with national-level monitoring by the Treasury’s Project Management and Oversight Department, ensure the efficient progress of the program. Regular updates will be submitted to the Cabinet Sub-Committee.

Prime Minister Dinesh Gunawardena, addressing the gathering, expressed the government’s expectation to implement projects that benefit all citizens equally. He stressed the importance of balanced development, considering factors such as poverty, population distribution, and geographical size in square miles within each district. The Prime Minister underscored the need for uninterrupted progress in the development program and urged officials to promptly inform the President’s Office in case of any disruptions.

Gunawardena highlighted the stabilization of the country’s economy due to the President’s initiatives and called on everyone to continue dedicating themselves to advancing economic stability and achieving the government’s development goals.

Urban Development and Housing Minister Prasanna Ranatunga, Chief Organizer of the ruling party, encouraged active participation in district development committees, emphasizing the submission of development proposals. He urged stakeholders to focus on providing tangible benefits without resorting to accusations about inadequate funding for development activities. Minister Ranatunga noted that, given the current non-functioning of local government institutions, the program will also include provincial council development projects, with the pilot program already underway in the Gampaha district.

The meeting saw the participation of Ministers, Governors, District Coordination Committee and Regional Development Committee chairpersons, Parliamentarians, and officials from various government offices, underlining the collective commitment to driving inclusive and impactful development nationwide.

Small Business Development Thrives through Collaborative Professional Fellows Programme

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January 12, Colombo (LNW): In a collaborative initiative aimed at fostering small business development, American small business owners are engaging with Sri Lankan entrepreneurs through a transformative five-week program. Facilitated by the Professional Fellows Programme on Economic Empowerment, an initiative of the State Department’s Educational and Cultural Affairs, this effort seeks to promote mutual growth in both nations.

During a recent meeting, Deputy Chief of Mission Douglas Sonnek learned firsthand about the positive impact of the program, which not only facilitates skills enhancement but also fosters invaluable cross-cultural connections. The initiative has proven instrumental in helping past fellows enhance their businesses, ranging from skincare lines to artisanal ice cream shops, thereby highlighting the tangible benefits of the program for small business entrepreneurs.

In a noteworthy continuation of this collaboration, American business leaders are currently in Sri Lanka, reconnecting with the fellows they hosted in the United States last year. This ongoing exchange underscores the enduring relationships forged through the Professional Fellows Programme and the positive influence it continues to have on small businesses in both nations.

Canadian High Commissioner Engages in Talks with Northern Province Governor

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January 12, Colombo (LNW): In a significant diplomatic development, the Canadian High Commissioner in Colombo, Eric Walsh, held a meeting with Northern Province Governor P. S. M. Charles in Jaffna yesterday.

The discussions centered around crucial community priorities, with a particular focus on reconciliation, economic development, and inclusion in the Northern Province. This meeting underscores the commitment to fostering positive relations and addressing key concerns for the betterment of the local community.