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SL intensifies Operation “Yukthiya” amidst international backlash

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January 14, Colombo (LNW): Acting Inspector General of Police (IGP) Deshbandu Tennakoon has issued a directive instructing all police divisional OICs, district OICs, station OICs, and crime OICs to actively engage in Operation “Yukthiya” (Justice), commencing today (14).

This instruction was conveyed during an awareness programme organised for the officers.

The Ministry of Public Security has provided essential information for the operation, encompassing details on 35,505 warrants issued, identification of 4,258 suspects through fingerprints, and the pursuit of 2,485 known suspects wanted for prior offenses.

The Acting IGP underscored the need for an intensive deployment of all crime branch officers, ensuring 24/7 coverage for the next month across all police divisions involved in Yukthiya.

Simultaneously, the National Police Commission has released a statement outlining corrective measures for the Acting IGP in connection with Operation Yukthiya.

These measures are said to have detailed instructions on the imperative for all officers to adhere strictly to the existing legal framework, upholding the principles enshrined in the constitution, particularly those pertaining to the protection of basic human rights.

The Acting IGP has been instructed to clearly communicate these requirements to all participating officers and promptly report back to the Commission on the implementation of these directives.

These directives appear in the backdrop where international human rights watchers and local activists critise the Sri Lankan government’s approach to Operation Yukthiya, raising concerns about potential human rights violations targeting civilians in the pursuit of narcotics and underworld operations.

Japan demands repayment as SL seeks project resumption

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January 14, Colombo (LNW): Japan announced that for the resumption of stalled projects, Sri Lanka is required to settle the outstanding amount related to the cancellation of the Colombo Light Rail Transit Project (LRT).

During a two-day official visit to the island-nation, Japanese Finance Minister Suzuki Shunichi underscored this point in discussions with President Ranil Wickremesinghe and Opposition Leader Sajith Premadasa.

In March 2019, the Japanese government had approved a loan assistance package of US$ 1,800 million for the LRT system project, initially scheduled for implementation that same year with completion targeted for 2026.

The project aimed to address traffic congestion in Colombo and its suburbs.

The Japan International Cooperation Agency (JICA) had committed to providing financial facilities under concessionary credit conditions.

Concurrently, the Oriental Consultants Global Company of Japan, in collaboration with several other firms, was engaged to offer consultancy services.

On March 11, 2019, a loan agreement was signed between Japan and Sri Lanka, accompanied by exchanged notes outlining the project details. The initiative envisioned the construction of a 17km-long elevated rail track featuring 16 stations, connecting vital intersections from Malabe to Colombo Fort.

The proposed service entailed the deployment of 25 trains, each comprising four air-conditioned passenger compartments capable of accommodating 800 passengers.

The total estimated cost for the project was Japanese Yen 246,641 million, with JICA committed to providing JPY 200,415 million (approximately USD 1,800 million) as a concessionary loan.

The repayment terms allowed for a 40-year period, including a grace period of 12 years, with an annual interest rate of 0.1 percent.

However, in September 2020, the Cabinet of Ministers at the time approved the termination of the project, citing substantial operating costs and environmental concerns, among other reasons.

A December 2022 report from the National Audit Office revealed a financial loss of Rs. 5,978 million incurred by Sri Lanka following the unilateral termination of the LRT project by the former President Gotabaya Rajapaksa-led government.

In May 2023, the current Cabinet of Ministers decided to revive the project, coinciding with President Wickremesinghe’s official visit to Japan.

The revival decision was motivated by the aim to restore Sri Lanka’s credibility with the international community.

Govt implements revisions to annual Excise Licence fees

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January 14, Colombo (LNW): The government has announced a revision in the Annual Excise Licence fees, effective from January 12, 2024.

Specifically, the Distillery Licence fee, excluding Palmyra arrack, has been adjusted to Rs. 25 million, whereas for Palmyra arrack, it stands at Rs. 05 million.

Additionally, the Licence fee pertaining to the bottling of Toddy has been revised to Rs. 10 million.

These adjustments in the fee structure are part of the government’s ongoing efforts to streamline and regulate the excise framework in the country.

Sri Lanka Original Narrative Summary: 14/01

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  1. IMF urges urgent action on bank recapitalization, property tax & an Anti-corruption Commission; also calls for focus on a new public financial management law, potential conflicts with the public-private partnership law & electricity tariffs: further highlights the need for amendments to the Banking Act.
  2. Minister Dr Bandula Gunawardena says remarks by CB Governor Nandalal Weerasinghe that present & future Govts are bound to carry out the IMF programme, is a “grave” statement: calls for 3-day Parliament debate on these remarks: Chief Opposition Whip & SJB MP Lakshman Kiriella says his Party does not trust the current CB Governor: previously, UNP Chairman & MP Wajira Abeywardana had accused the CB Governor of declaring the country bankrupt, without Parliamentary approval.
  3. Acting IGP Deshabandu Tennakoon issues a list of names of 42,248 persons who are wanted for various criminal activities: orders these to be shared among OICs & Crimes OICs of all Police Stations with instructions to arrest such persons under the “Yukthiya” operation.
  4. Minister of Labour Manusha Nanayakkara says proposals presented to increase the Motor Commissioner Dept income were delayed by more than 1 year by certain officials: calls for legal action against such officials: asserts the loss incurred by the Govt due to the delay should be recovered from those officials.
  5. Dissident SLPP MP Gevindu Cumaratunga accuses President Ranil Wickremesinghe of abusing his ousted predecessor Gotabaya Rajapaksa’s mandate: questions the President’s recent statements in Jaffna regarding the 13th Amendment to the Constitution.
  6. Treasury Secretary Mahinda Siriwardene orders all Ministry/Provincial Secretaries & Heads of all State institutions to cut costs & bear only essential expenses when paying overtime, travel & other allowances: says these measures are due to rising state expenditure & declining state revenue: previously, the Govt had said state revenues have risen to unprecedentedly high levels.
  7. SJB MP S M Marikkar says his Party will “take to the streets” along with the public on 30th Jan’24 to oust the current Govt, despite the Govt’s attempts to suppress the people: asserts the SJB won’t be intimidated by these moves: also says it was the SJB that went to the then President’s office on 16 March’22 to oust him.
  8. SJB Economic Guru Dr Harsha de Silva says the message conveyed by Japan’s Finance Minister Suzuki Shunichi when he met Opposition Leader Sajith Premadasa was that SL must (a) complete debt restructuring, (b) not jeopardise the IMF program, & (c) re-pay amounts due for cancelling the “Light Rail” project: previously, former President Gotabaya Rajapaksa had terminated the 21km Japan-funded LRT project costing USD 1.8bn (at USD 85mn per km), on the grounds that it was not “cost-effective”.
  9. Govt re-hires Singapore-based consulting firm Surbana Jurong to provide one-stop consultancy solutions on urbanisation, industrialisation and infrastructure: the consultants to review 3 key development plans: Western Region Megapolis, Eastern Development, & Southern Development.
  10. Sports Minister Harin Fernando says foreigners coaching & mentoring players in the SL team, out-number the locals: laments that 8 white men (“Suddho”) decide what has to be done with the team but the players don’t understand what they are saying.

Today’s (Jan 14) weather: A few showers expected, mainly fair weather to prevail

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By: Isuru Parakrama

January 14, Colombo (LNW): A few showers may occur in Central, Uva and Eastern provinces, and mainly fair weather will prevail in the other areas of the island, the Department of Meteorology said in its daily weather forecast today (14).

Fairly strong winds about (30-40) kmph can be expected at times in Uva, Central and North-Western provinces and in Ampara, Hambantota and Kegalle districts.

Misty conditions can be expected at some places in Sabaragamuwa and Central provinces and in Galle and Matara districts during the morning.

Marine Weather:

Condition of Rain:
Mainly fair weather will prevail in the sea areas around the island.
Winds:
Winds will be north-easterly and wind speed will be (30-40) kmph. Wind speed may increase up to (50-60) kmph at times in the sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Pottuvil to Matara via Hambantota.
State of Sea:
The sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Pottuvil to Matara via Hambantota can be rough at times.

Kurt Mosvold appointed as the Honorary Consul of Sri Lanka in Kristiansand, Norway

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An eminent Norwegian business person and philanthropist Kurt Mosvold was appointed as the Honorary Consul of Sri Lanka in Kristiansand, Norway.

The Commission of Appointment issued under the hand of Foreign Minister Ali Sabry and the Exequatur issued by the Ministry of Foreign Affairs of the Kingdom of Norway were presented to Mr. Mosvold by Sri Lanka’s Envoy to Norway Ambassador Dharshana M. Perera on 09 January 2024 in Stockholm.

Kurt Mosvold has a strong and long-standing presence in Sri Lanka’s tourism sector with several properties in southern Sri Lanka. He is engaged in several social upliftment initiatives in education, vocational training, etc through the Mosvold-Martinus Foundation (MME).

With his eminence in southern Norway, Mr. Mosvold’s role as Sri Lanka’s Honorary Consul is expected to further enhance Sri Lanka’s on-going engagement with Norway especially in tourism and economic initiatives, and facilitate the interests and needs of the Sri Lankan community in the region.

In preparation for his role as the Honorary Consul, Mr. Mosvold had discussions with the Ambassador of Sri Lanka and the Embassy team in consultative sessions which were followed by lunch with business persons in IT, representatives of tourism industry, diplomats, and others.

Embassy of Sri Lanka

Stockholm

12 January 2024

SLAF Helicopter Crash in Central Africa: Defence Ministry Refutes Al-Shabaab Hostage Claims

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  • Sri Lanka Air Force (SLAF)  initiates Investigations

The Ministry of Defence in Sri Lanka strongly refuted the allegations that a group of Sri Lankans was taken hostage by the Al-Shabaab militant group after a SLAF helicopter crash-landed in Somalia.

The SLAF MI 17 helicopter (SMH 4417) was on a routine cargo flight during a United Nations Peacekeeping mission in the Central African Republic on January 12 crash-landed at Sam-Oundja  during the landing phase due to rotor brownout (RWB) resulting from extreme dusty and sand conditions.

At the time of the incident, five crew members and 1200 kg of cargo were on board. Two crew members sustained minor injuries.

The Ministry of Defence further emphasized that the above five-member crew and the helicopter are safe within the Sri Lankan Contingent in Central African Republic.

The SLAF has appointed a panel of investigators to probe the crash of the helicopter and determine the precise cause and extent of the damage.

The Ministry of Defence urges the public to not to be misled by false information. Furthermore, media personnel are informed to reach out to the Ministry for any clarification.  

Public Service Recruitment Frozen for Three Years

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January 13, Colombo (LNW): Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardhana announced yesterday that due to the challenging economic situation in the country and in adherence to the agreement with the International Monetary Fund (IMF), there will be no recruitment in the public service for the next three years. The Minister clarified that provisions for new recruitments and salary payments for additional personnel are not feasible under the current agreement.

However, Minister Gunawardhana stated that Cabinet approval has been granted for the recruitment of a specific group of drivers and conductors, with a focus on ensuring mandatory accessibility to public transport. He made these remarks during a ceremony where appointments were presented to a group of new drivers and conductors at the Ministry.

Additionally, the Minister highlighted the Cabinet’s approval for the reinstatement of a selected group of employees who had lost their jobs at the Board for various reasons, including failure to report to work.

Addressing budget constraints, Minister Gunawardhana mentioned the need for Rs 20 billion to provide season tickets to schoolchildren nationwide but stated that only Rs 10 billion had been allocated. He expressed intentions to make a special request to Parliament to secure the remaining funds.

Minister Gunawardhana also outlined ongoing efforts to address issues within the Sri Lanka Transport Board (SLTB), emphasizing the appointment of a politically unaffiliated engineer with extensive experience as the Chairman. He stressed the commitment to combating theft, fraud, corruption, and malpractice within the Board, warning of job loss for those found guilty of financial fraud.

To tackle financial irregularities, the Minister revealed the establishment of an investigation unit under the leadership of a former Deputy Inspector General of the Police Special Task Force. Additionally, plans were disclosed to introduce a digital payment method, including a QR method for issuing tickets, within the next two months to curb the daily loss of nearly Rs 10 million from the income of all SLTB depots due to financial irregularities.

IRD Surpasses 2023 Tax Revenue Target

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January 13, Colombo (LNW): The Inland Revenue Department (IRD) has achieved a historic milestone by surpassing its tax revenue target for 2023, recording an impressive Rs. 1,550.6 billion, exceeding the set target of Rs. 1,492 billion by 104 percent. Deputy Commissioner General of the Inland Revenue Department, Saman Shantha, emphasized the success of the department’s initiatives during a briefing to the Daily News on January 12.

Shantha clarified that individuals over 18 need not fear obtaining the Taxpayer Identification Number (TIN) certificate, as it doesn’t entail tax payment obligations unless their annual income exceeds Rs. 1.2 million. Since the commencement of issuing TIN certificates for those over 18 on January 1, over 50,000 certificates have already been issued within a short span until January 12.

Expressing the overwhelming response, Shantha mentioned a high number of requests and applications received for TIN certificates in the first half of January, indicating the program’s success. Due to the increased demand, more officers will be assigned to expedite the processing of TIN certificates from the following week.

Shantha estimated that it will take about two months to identify and categorize the groups that have registered for TIN certificates. Looking ahead, he outlined the ambitious target of Rs. 2,024 billion for tax revenue in 2024.

The Inland Revenue Department’s achievements in 2023 are commendable, with a total revenue collection of Rs. 1,550.6 billion compared to Rs. 861.233 billion in 2022. The department has witnessed remarkable growth, with a revenue collection increase of 80 percent for 2023. Specifically, Corporate and Non-Corporate Income Tax recorded a growth of 25 percent, Value Added Tax (VAT) grew by 59 percent, Advance Personal Income Tax surged by 473 percent, and Advance Income Tax saw an impressive growth of 684 percent compared to the previous year.

IMF Commends Sri Lanka’s Reform Progress in Recent Presidential Meeting

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January 13, Colombo (LNW): In a high-profile meeting on Thursday (11), President Ranil Wickremesinghe and Sri Lankan authorities engaged with the International Monetary Fund (IMF), where congratulations were extended to the nation for successfully completing the first review under the IMF program.

The IMF acknowledged the positive initiation of the program, praising Sri Lanka for undertaking challenging reforms that have had a significant impact on the domestic population. Directors at the executive board meeting specifically lauded Sri Lanka’s courage in pioneering the publication of a governance diagnostic—an unprecedented effort in Asia.

Peter Breuer, the Senior Mission Chief for Sri Lanka, shared encouraging observations regarding the program’s effects on stabilizing the economy, particularly in policy-oriented variables and fiscal areas. A recent meeting highlighted promising revenue collection, demonstrating the effectiveness of implemented policies since the staff level agreement in the second half of 2022. The IMF underscored the positive surprise in these developments, fostering confidence with the international community, official creditors, and private creditors.

Breuer conveyed to President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022 are working, that they have the intended effect, that you’re collecting the revenue that’s needed to address the cause of the crisis. So, that really is very good news.”

The board meeting acknowledged Sri Lanka’s success in significantly reducing inflation, attributing it to government efforts in monetary policy and the reduction of monetary financing. Positive outcomes, including an increase in reserves, were noted. Ongoing governance reforms were seen as positive indicators contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.

As the IMF prepares for its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs, and urgent preparations for property taxation. The IMF stressed the importance of persisting with ongoing reforms, addressing fiscal issues, and advancing governance agendas.

The meeting also emphasized the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector. On the governance front, discussions revolved around operationalizing the Anti-Corruption Commission, publishing action plans, and meeting with the Constitutional Council for insights into commissioner selection processes.