Mahinda Yapa Abeywardana, the Speaker of Parliament, has given his approval to critical financial legislation, including the Appropriation Bill for the year 2024, the Value Added Tax (Amendment), and Finance Bills, recently passed in Parliament.

The national budget for the upcoming fiscal year was crafted against the backdrop of an unprecedented economic downturn, marked as the most significant in the recorded history of our nation.

This year’s budget outlines substantial increases in funding across various sectors, including government employee salaries, retirement benefits, poverty alleviation programs like Aswasuma, education, healthcare, and road infrastructure development.

Among the notable provisions, government employees are slated to receive a 10,000 rupee increment in their living allowance from January 1st, 2024. While the policy goes into effect in January, the disbursement of the adjusted amount is scheduled to commence in April.

To address the period from January to April, arrears owed to government employees will be distributed in installments starting from October of the following year.

Currently operating within the framework of the International Monetary Fund’s credit facility, the nation is bound by stringent economic policies.

Despite the diverse expenditure propositions in this year’s budget, the central challenge lies in securing sufficient state revenue, an issue emphasized in the International Monetary Fund’s staff report released on December 12th alongside the second tranche disbursement.

“Even with revenue measures adopted so far, government revenue remains substantially lower than in other emerging market and middle-income countries.”

The government’s primary revenue-generation strategy revolves around a proposed hike in the Value Added Tax (VAT) rate, scheduled to escalate from 15% to 18% effective January 1st.

Moreover, nearly 100 previously exempted goods and services are expected to be brought under the VAT framework as part of the proposed reforms.

Three individuals were wounded in a shooting at a residence located in Caritas, Walpola, Ragama.

Among those injured were a 49-year-old employed at a fish market, alongside his mother, and a 17-year-old youth residing in a neighboring house. All three have been admitted to Ragama Hospital for medical treatment.

Authorities from the Sri Lanka Police reported that the assailants, riding a motorcycle, carried out the shooting on Thursday night (14). The group’s motive remains under investigation as law enforcement endeavors to identify and locate those responsible for the attack.

The Second National Convention of the Sri Lanka Podujana Peramuna (SLPP) spearheaded by former President Mahinda Rajapaksa is set to take place today at the Sugathadasa Indoor Stadium in Colombo.

Anticipating a significant turnout, the event is expected to draw a vast assembly of SLPP members, including key figures such as the party’s founder and national organizer, former Economic Development Minister Basil Rajapaksa, alongside ministers and leaders from allied political groups.

Notably, the convention aims to encompass participation from all political parties and allied groups associated with the Sri Lanka Podujana Peramuna, extending invitations even to party members residing in every constituency across the country.

Emphasizing the significance of the event, Basil Rajapaksa highlighted that the convention will unveil the party’s forward-moving agenda, marking the commencement of proceedings at 2 pm. Over 5,000 representatives from all constituencies are expected to engage in the convention’s discussions.

Reflecting on the SLPP’s trajectory since its inception in 2016, the party has achieved notable successes within a brief span, notably securing significant victories, including a substantial triumph in the first local government election following its establishment. Subsequent wins in the 2019 Presidential and General Elections solidified the party’s historical achievements in the country.

Sri Lanka Podujana Peramuna General Secretary MP Sagara Kariyawasam highlighted the party’s milestone accomplishments, citing the largest May Day rally and an 85% victory in the Local Government elections under the symbol of “the lotus bud.” The nomination and subsequent election of Gotabaya Rajapaksa as President, backed by the party and supported by a historic 6.9 million votes, further underscored the SLPP’s influence and resonance among Sri Lankans.

The Ceylon Electricity Board Technological Engineers and Superintendent Union (CEBTESU) have voiced strong objections against recent statements made by the President in Parliament concerning electrical engineers, alleging their involvement in commission dealings related to coal and fossil fuels.

Joint Secretary Janaka Lakmewan announced plans to deliver a formal letter of protest to the President’s Office on Friday (15), vehemently refuting the President’s assertions and emphasizing the adherence of CEB engineers to policy guidelines.

Lakmewan underscored the need for clarity and requested an investigation into any discrepancies or irregularities that may have prompted the President’s statements, highlighting the union’s commitment to transparency and ethical conduct within the Ceylon Electricity Board.

Showers will occur at times in Southern, Eastern and Uva provinces and in Jaffna, Mullaitivu, Matale and Polonnaruwa districts. Several spells of showers will occur in Vavuniya, Kilinochchi, Mannar and Anuradhapura districts.

Showers or thundershowers will occur at several places in other areas of the island after 1.00 p.m.

Heavy showers about 100 mm are likely at some places in Southern, Uva, Western, Sabaragamuwa, Central and Eastern provinces.

Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces in the morning.

The public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Her Royal Highness Princess Anne, The Princess Royal of the United Kingdom will visit Sri Lanka from 10 -13 January 2024, the Ministry of Foreign Affairs said in a statement today (14).

She will be accompanied by her spouse Vice Admiral Sir Tim Laurence.

Her Royal Highness has been invited by the Government of Sri Lanka to participate in events connected with the 75^th Anniversary of diplomatic relations between Sri Lanka and the UK. 

Colombo (LNW): The Court of Appeal has ordered for the provision of enhanced security measures to Shani Abeysekera, the former director of the Criminal Investigation Department (CID), citing imminent threats to his life.

The order supplements the current security arrangements in place for the ex CID director. This decision was rendered in response to a writ petition filed by Mr. Abeysekera.

During the proceedings, Abeysekera’s legal representative conveyed to the court that his client currently benefits from the presence of only one police officer and one motorcycle as part of his security detail.

Consequently, the Court of Appeal has mandated the augmentation of his security provisions to ensure his safety and well-being.

Colombo (LNW): The Supreme Court today (14) issued an order mandating Acting Inspector General of Police (IGP) Deshabandu Tennakoon and three other Police officers to personally compensate an individual with Rs. 2 million for violating his fundamental rights (FR) during detention at the Mirihana Police Station twelve years ago.

The Court concluded that Tennakoon and three other police officers infringed upon the fundamental rights of petitioner W. Ranjith Sumangala through his illegal arrest, detention, and torture at the Mirihana Police Station in 2011, which fell under Tennakoon’s supervision.

Additionally, Ajith Wanasundera, a retired Sergeant Major of the Army involved in the incident, was deemed liable and directed to pay compensation. The State was also instructed to provide Rs. 100,000 in compensation to the petitioner.

In a broader directive, the Supreme Court mandated various authorities, including the National Police Commission, to take disciplinary action against all implicated police officers, including Acting IGP Tennakoon.

The petitioner was represented by Senior Counsel Viran Corea, along with counsel Sarita De Fonseka and Thilini Vidanagamage. Senior State Counsel Induni Punchihewa appeared on behalf of Tennakoon and the Attorney General. Justice S. Thurairaja delivered the judgment, with concurrence from Justices Kumudini Wickremasinghe and Priyantha Fernando.

Colombo (LNW): A token strike organised at the National Eye Hospital in Colombo set to commence this (14) morning has been called off, after a discussion with Secretary to the Ministry of Health, Dr. Palitha Mahipala.

The planned token strike was in response to the perceived lack of action from the Hospital Director and the Ministry of Health regarding the unprofessional conduct of the Administrative Officer at the National Eye Hospital.

Dr. Chamil Wijesinghe, spokesperson for the Government Medical Officers’ Association, announced that the trade union action has been temporarily halted.

This decision was made after the Health Secretary assured them that the matter would be addressed, and an investigation would be conducted into the issues raised.

By: Staff Writer

Colombo (LNW): Now that the immediate economic crisis is over and Sri Lanka has secured the second tanche of US$337 million, the government has to seek more international funding which includes access to IDA and access to the IBRD (International Bank for Reconstruction and Development, a part of World Bank that lends to middle-income countries).

Extended Fund Facility from the IMF is quite essential in times like this, where the country has lost access to the market for finance.

In this context President Ranil Wickremesinghe yesterday told Parliament that Sri Lanka’s success in securing the necessary funds from international financial institutions in recent months would provide a significant boost to the country’s financial sector, ensuring its complete security.

With the International Monetary Fund approving the second tranche and the World Bank extending US $ 150 million for deposit insurance, Sri Lanka is poised to receive additional funding for the development process from the other key financial institutions such as the Asian Development Bank and JICA, at low-interest rates and favourable terms, he said.

World Bank lending has supported Sri Lanka’s development for several decades and its outstanding loan portfolio tops 2.4 billion dollars across 17 projects. However when Sri Lanka’s economic crisis hit the bank repurposed around 14% of its undisbursed loans to help pay for imports of LP gas and fertiliser.

“This approval reinstates the confidence of foreign investors, who can now invest in Sri Lanka without hesitation. Our international letters of credit are once again recognised, providing us with the opportunity to expand our market more easily and gain global recognition. It is imperative that we strive to maximise these opportunities for the benefit of our country,” he said.

Although the country has bagged some wins, President Wickremesinghe said it is crucial to acknowledge that achieving this victory does not signify perfection.

“According to President Wickremesinghe, as Sri Lanka progresses forward, it is imperative to advance steadfastly along the path while exercising caution to prevent the recurrence of past errors that led the nation towards financial insolvency.

“The commitment to these principles will unequivocally influence the security or jeopardy of our country’s future,” he said.

President Wickremesinghe pointed out that the journey towards revival and growth is marked by several paramount objectives—minimising the foreign exchange deficit, achieving trade balance, narrowing the income and expenditure gap, optimising the surplus in the primary budget account and upholding stringent financial discipline.