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Sri Lanka Original Narrative Summary: 16/03

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1. President Ranil Wickremesinghe urged all local government officials to wholeheartedly commit themselves to ensuring that the benefits provided to the people through government funding for development activities are effectively utilized.By responsibly managing these resources, officials can contribute significantly to bolstering the national economy, he added.

2. Former Health Minister Keheliya Rambukwella, who is in remand custody in connection with the substandard human intravenous immunoglobulin (IVIG) procurement, has submitted a bail application to the Colombo High Court.

3. A total of 14 Request for Expression of Interest (REOI) have been received from potential investors for the Strategic Divestiture of Litro Gas Lanka Ltd. (LGL) and Litro Gas Terminals (Pvt) Ltd. (LGT). The REOIs received were considered by the Opening Committee appointed by the Special Cabinet Appointed Negotiating Committee. 

4. The High Commission of Sri Lanka in Singapore has revealed that over 400 Sri Lankan nurses currently work in Singapore. A group of 100 nurses arrived at the Changi Airport in Singapore on Friday (15 March), under an ongoing collaboration with Singapore’s Ministry of Health Holdings, making this the largest group of nurses to be deployed to Singapore simultaneously.

5. The Supreme Court concluded the hearing of petitions seeking the annulment of recommendations and findings of the Presidential Commission of Inquiry (PCoI) appointed by former President Gotabaya Rajapaksa to investigate alleged incidents of political victimisation. Despite concluding the hearing, however, the Supreme Court deferred announcing its decision.

6. The suspended health trade union action will be resumed from March 19 (Tuesday), says the Convenor of the Health Service Trade Unions Ravi Kumudesh. Addressing a media briefing in Colombo, Kumudesh said the authorities failed to provide them with satisfactory solutions to the issues facing the health sector workers.

7. Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva has refuted recent claims that he requested for a meeting with the visiting delegation of the International Monetary Fund (IMF). In response to a statement made by State Minister of Finance Shehan Semasinghe, the SJB MP stated that he had merely requested for the Opposition to be involved in the External Debt Restructure (EDR). He further highlighted that he had made a request in this regard given the crucial importance of the Opposition being made aware of such facts and figures in the event they are elected as the next government.

8. The Department of Forest Conservation has issued a concerning report, revealing that 55 hectares of forest cover have been ravaged by recent forest fires. These destructive fires, which occurred over the past few weeks, pose a significant threat to Sri Lanka’s delicate ecosystem.

9. Excise Department Commissioner General M. J. Gunasiri stated that e-cigarettes are currently posing a multitude of challenges for both society and the Government, leading to a substantial loss in tax revenue. He elaborated that these particular cigarettes are packed with a substantial level of nicotine, posing a greater threat to the human body compared to a standard cigarette.

10. Two Indian team managers participating in the Legends Cricket Trophy, currently underway in Sri Lanka, have been prohibited from leaving the country by the Colombo Magistrate Court. The court issued the order following a complaint filed by the Special Investigations Unit of the Sports Ministry regarding match-fixing allegations.

Home Affairs State Minister Updates on Grama Niladhari Officer Recruitment and Economic Agenda

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March 16, Colombo (LNW): In a recent announcement, State Minister of Home Affairs, Ashoka Priyantha, revealed ongoing interviews for the recruitment of Grama Niladhari Officers (GNO) across 2,002 vacant divisions. Priyantha assured that the selected candidates would assume their roles before April concludes, underscoring the government’s commitment to filling crucial administrative positions swiftly.

Addressing the media at the Presidential Media Centre under the theme ‘Collective Path to a Stable Country’, Priyantha reiterated the potential of President Ranil Wickremesinghe’s agenda in steering the nation towards economic prosperity and societal well-being.

Highlighting the Ministry’s proactive approach to socioeconomic stability, Priyantha outlined various initiatives aimed at addressing past crises. These include the establishment of district-level food safety and nutrition committees, provision of spectacles to 02 million impoverished families, and efforts towards rural development through decentralized budget initiatives.

Furthermore, Priyantha disclosed recent interviews conducted on March 13 and 14 for GNO recruitment, with ongoing sessions on March 15. The Ministry aims to finalize these appointments by the end of April.

In a related development, Prime Minister Dinesh Gunawardena engaged with professional associations of Grama Niladhari Officers on March 14 to address their concerns, including travel expenses and office allowances. A cabinet paper has been submitted in this regard.

Regarding governance issues, Priyantha revealed the drafting of the GN Constitution, a pivotal concern for GNOs, with a cabinet paper awaiting approval. Once ratified, it will undergo further action to enhance administrative processes.

Priyantha concluded by emphasizing the government’s dedication to livelihood restoration and societal cohesion amidst economic challenges. He credited President Wickremesinghe for fostering trust and expressed optimism in sustaining the current trajectory for transformative growth over the next two years, heralding positive economic rejuvenation and project rectification.

Excise Commissioner General Warns of E-Cigarette Menace

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March 16, Colombo (LNW): M. J. Gunasiri, the Commissioner General of the Excise Department, highlighted the multifaceted challenges posed by e-cigarettes to both society and government revenue streams. Gunasiri emphasized the alarming nicotine content in e-cigarettes, surpassing that of traditional cigarettes, and the heightened risk of addiction and associated health hazards, including lung cancer.

Of particular concern is the deceptive packaging of e-cigarettes, camouflaged as innocuous items like power banks and perfume bottles, making them difficult to detect. This covert nature exacerbates their prevalence among school students and young people, posing a grave threat to public health.

Furthermore, Gunasiri noted the alarming trend’s adverse impact on tax revenue, as the proliferation of e-cigarettes undermines traditional tobacco taxation. He pointed out that these devices emit pleasant aromas, adding to their allure but concealing their potential harm.

Highlighting global consensus on the dangers of e-cigarettes, Gunasiri referenced the bans imposed by authoritative bodies such as the World Health Organization and the United States. These prohibitions underscore the urgent need for robust measures to curb the spread of e-cigarettes and protect public health and fiscal interests.

Education Minister Advocates Holistic Learning Beyond Exams

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March 16, Colombo (LNW): Education Minister Dr. Susil Premajayantha emphasized that the purpose of schooling extends beyond exam results, stressing the importance of equipping children with broader knowledge, attitudes, and skills.

Premajayantha underscored the need to move away from a solely exam-focused approach, emphasizing educational reforms aimed at evaluating practical skills alongside academic knowledge.

Speaking in conjunction with the national rollout of the Activity Based Oral English (ABOE) program for Grade One students in 2024, the Minister highlighted the initiative’s focus on developing English speaking and listening skills from an early age.

The ABOE program, introduced for Grade one and two students across the country, aims to address the growing necessity for English proficiency from the primary education level, recognizing the importance of language skills in today’s global landscape.

To support the implementation of the program, the Ministry has conducted training sessions for primary teachers, with over 13,800 educators already equipped with the necessary skills for activity-based oral English teaching.

Minister Premajayantha’s remarks signal a shift towards a more holistic approach to education, aligning with the evolving needs of learners in a rapidly changing world.

Sri Lankan MPs Advocate for Unified Environmental Legislation

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March 16, Colombo (LNW): During a recent press conference, SJB Member of Parliament Eran Wickramaratne emphasized the collective responsibility of parliamentarians, irrespective of party affiliations, to draft environmentally friendly laws. The conference aimed to elucidate the objectives of Sri Lanka’s Environment Parliament.

Wickramaratne highlighted the pressing issue of rising temperatures, particularly affecting Sri Lanka’s lowlands and coastal regions. He stressed the necessity, as per the Paris Agreement, to escalate renewable energy usage to 70% by 2030 and eliminate carbon dioxide emissions entirely by 2050. The upcoming meeting of the Sri Lanka Environmental Parliamentary Forum, scheduled for March 21, will convene parliamentarians, political figures, officials, scholars, and activists to address local and global environmental challenges.

MP Anura Priyadarshana Yapa echoed Wickramaratne’s sentiments, underlining the importance of engaging in global environmental discourse to tackle shared challenges. He outlined the Environmental Parliamentary Forum’s role in guiding governmental policies to alleviate environmental distress and ensure the welfare of both people and wildlife.

MP Yadamini Gunawardena emphasized the urgency of managing climate change effectively to safeguard lives and the economy. He stressed the need for coordinated efforts with relevant institutions.

The press conference aimed to raise awareness about the Environment Parliament, which comprises members from diverse political backgrounds. Notably, similar bodies exist in over 50 countries worldwide, reflecting a global commitment to environmental stewardship.

Mainly dry weather will prevail on the island

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March 16, Colombo (LNW): Showers or thundershowers may occur at a few places in Western, Sabaragamuwa and Central provinces and in Galle and Matara districts in the evening or night.

Mainly dry weather will prevail elsewhere of the island.

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

Kasun and Dilshan, the Rajapaksa Brothers robs DSI blind

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March 15, Colombo (LNW): Colombo Commercial High Court Judge Priyantha Fernando on March (13) set the order to be issued on April 30, 2024 regarding the case filed by Mr. Sajith Rajapaksa, who was a managing director of the company, challenging the illegal removal from his positions.

The judge also set a date for the investigation regarding the complaint filed by Mr. Sajith Rajapaksa demanding that legal action be taken against contempt of court since defendants ignored the order given by the court to reinstate him in the same positions.

On March 13th at the Colombo Commercial High Court, Mr. Marapana, who appeared for Mr. Sajith Rajapaksa, stated that his client, who held the position of managing director of several companies belonging to the group of companies of DSI, was removed from those positions in violation of the Companies Act and in a manner that is completely contrary to the doctrine of natural justice. President Counsel Naveen Marapana also conveyed to the court that it is completely illegal to arbitrarily remove his client without conducting a proper investigation and appointing others to take over the positions he held while he was arrested on conspired and absurd charges.

The President Counsel told the court that the said removal was done based on the needs and pressure of a very limited number of people and it appears that the removal of a very efficient person like Sajith Rajapaksa was done with the aim of covering up various irregularities and frauds allegedly committed by the respondents.

The companies navigated by Mr. Sajith Rajapaksa and his family had contributed over 60 per cent of net profit of the Group, and the parties chairing other companies, the respondents, had acted in maliciousness to oust him in response to his brilliant performance with the ulterior motive to grab these profitable businesses, he told Court.

It was submitted to the Court that Kasun Rajapaksa, the current Managing Director of DSI Group who is also serving as the Vice Chairman of the Ceylon National Chamber of Industries, and Dilshan Rajapaksa a director of DSI group and also a vice president at National Chamber of Exporters had notoriously opened offshore shoe businesses and committed fraud, paving the way for money outflow, in violation of the parent group’s fiscal regulations and country’s exchange regulations. In the backdrop, the total loss incurred by the Group due to these misappropriations was found to be over Rs. 400 million according to court proceedings.

Sajith Rajapaksa’s lawyers have submitted facts to court elaborating staggering financial misappropriations of Rs. 104 million through Dubai-based Azamaq Novelties Trading LLC, of Rs. 120 million through Australian based Y Communications QLD PTY LTD, of Rs. 60 million through Classic Footwear (Pvt) Ltd and of Rs. 70 million through UK-based Lakeland Footwear International Limited committed by the respondents in the aforementioned manner. The capital invested in the above companies have eroded and become zero while incurring heavy losses amounting to Rs. 81 million as at 31st of March 2022 sparking serious concerns about director’s oversight. Despite the hefty losses these entities have been granted loans by DSI up to a staggering 212 million while trading goods worth Rs 60mn have been continuously supplied by DSI. Why these directors have further burdened these entities by racking up significant international debt also even while performing so poorly remains unanswered. It is also questionable how some of these funds were transferred to the overseas entities during 2021/2022 where there were severe restrictions in place for foreign exchange expatriation. All these raised critical concerns regarding what has happened to the colossal amount of money invested by DSI in the above companies.

Further, facts were submitted to court that the respondents had invested in India via Samson Footwear Private Limited, incurring a loss, and over Rs. 1 billion of corporate guarantees had been retrieved from the parent group via Premier Synthetic Leather Manufacturing (Pvt) Ltd,. The Rajapaksa brothers Kasun and Dilshan duo are the family directors of all these entities.

Regarding the granting of permission to present facts on behalf of Mr. Sajith Rajapaksa, the President’s Counsel who represented the managing director of the respondent company Kasun Rajapaksa, Thusitha Rajapaksa, Bhathiya Amarakon, Nelani Rajapaksa  and Asanka Rajapaksa had raised an objection, but the judge rejected the objection on the previous day of the hearing, Mr. Marapana had been given permission.

In the backdrop, the most profit-making businesses managed by Ranatunga Rajapaksa family, in which Sajith Rajapaksa is a member, was subjugated to arbitrary acquisition, whilst ousting Sajith from his rightful positions, they asserted before Court. 

The chain of events may drive DSI Group, which shelters tens of thousands of breadwinners, into a serious crisis in the near future, facts unveiled before Court demonstrated. President’s lawyer Mr. Chandaka Jayasundara appeared for Sajith Rajapaksa and President’s lawyer Mr. Naveen Marapana appeared for his companies.

Rakna Arakshaka Lanka Limited Takes Charge of Expressway Security and Rescue Operations

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March 15, Colombo (LNW): Following the withdrawal of the Police Special Task Force from internal security and rescue operations on expressways, Rakna Arakshaka Lanka Limited (RALL) has been entrusted with these responsibilities. The decision, effective since Wednesday (13), marks a transition in ensuring road safety along expressways.

The Road Development Authority (RDA) disclosed that officers from Rakna Arakshaka Lanka Limited have been deployed for this purpose. The handover comes at an estimated monthly expense of approximately Rs. 12 million.

However, it’s important to note that the security and rescue operations for the section between Mirigama and Kurunegala along the Central Expressway have been delegated to local authorities, as confirmed by the RDA.

Sri Lanka fails to ‘meet’ 33% of IMF commitments due by end-Feb

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March 15, Colombo (LNW): Sri Lanka verifiably failed to meet 33% of the commitments due by end-February 2024 in its International Monetary Fund (IMF) programme, according to the February update of Verité Research’s ‘IMF Tracker’.

Many of these commitments that are classified as ‘not met’ on IMF Tracker were designed to improve governance. 

These include commitments related to publishing information (transparency), and those that require the passage of governance-improving legislation. 

The IMF has recognised poor governance as being at the heart of Sri Lanka’s economic crisis, and Sri Lanka is the first Asian country to have had an IMF-led Governance Diagnostic Assessment.

The status of 36% of the commitments are classified as ‘unknown’, which means sufficient data was not made available to assess their progress. By end-February, 31% of the commitments were verifiably ‘met’.

The second round of IMF programme funding came in December 2023. Under the updated agreement, Sri Lanka was due to meet 45 commitments by end-February. The IMF Tracker dashboard classified 14 (31%) of these as ‘met’, 15 (33%) as ‘not met’, and 16 (36%) as ‘unknown’.

Of the 15 ‘not met’ commitments, six are on publishing information. Four are on actions relating to adopting new laws: (a) Obtaining parliamentary approval on Banking Act; (b) Introducing automatic indexation of excises to inflation; (c) Making legislative change to set up a debt management agency; (d) Presenting the public finance management law to parliament.

 These four actions, which are aimed at addressing governance problems, have remained neglected despite being included in the IMF staff-level agreement in September 2022.

IMF Tracker is the only platform that is publicly tracking Sri Lanka’s commitments under its 17th IMF programme. It is available on the parliament monitoring platform manthri.lk of Verité Research,.

Mwanwhile rhe International Monetary Fund (IMF) Senior Mission Chief for Sri Lanka Peter Breuer and other officials yesterday met with the Power and Energy Ministry to review the progress of the reforms of the Ceylon Electricity Board (CEB) and the Ceylon Petroleum Corporation (CPC).

Taking to ‘X’ Power and Energy Minister Kanchana Wijesekera announced that they discussed key matters related to the sector.

“Matters on recent tariff reduction in the electricity sector, CEB and CPC balance sheets of 2023, current financial position of CEB, accounting principles and standards adopted, BSTA filling automation, dispatch audit to be conducted, outstanding payments, forecast for 2024, CPC pricing formula and CPC operations was briefed and discussed,” he added.

Government appoints Expert committee to tackle construction sector challenges

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March 15, Colombo (LNW): The government has stepped into find some redress to the  construction industry in Sri Lanka which is on the verge of collapsing in the economic crisis which has triggered the the shortage of building material and its  high prices if it is available in some hardware stores.     

Sri Lanka stands on the verge of losing a major industry – its construction sector, which notably contributes approximately 9.6% to the GDP and involves nearly 2.6 million stakeholders. 

The industry has already seen a significant contraction by 60%, resulting in over 500,000 job losses and the emigration of more than 10,000 professionals. In response, the government has established a task force, producing a 51-point report, from which 11 critical points were selected for action. 

Despite these measures, progress has stalled, necessitating urgent intervention to rejuvenate the industry.

Inthis context ,President Ranil Wickremesinghe announced that an expert committee would be appointed to investigate and propose solutions for the prevailing economic challenges, particularly within the construction sector. 

This declaration was made during a discussion held at the Presidential Secretariat attended by industrialists from the construction sector, the President’s Media Division (PMD) said. 

Wickremesinghe also emphasized the inclusion of experts from the Ministry of Finance, Ministry of Urban Development, and Housing in this committee formation process. Furthermore, he assured relief for industrialists across various sectors through debt restructuring by the following year.

The discussion also delved into the issues faced by contractors of all scales and parties within the construction field, including the revival of stalled projects, the establishment of an investment-friendly environment, the promotion of construction services, and alternative funding and contracts. Counselling matters were extensively addressed during the session, it added.

The plight of contractors, particularly in the SME sector, is alarming. They face immense hardships from halted projects, non-payment, and financial pressures, often risking personal assets.

The competitive nature of acquiring projects, with minimal profit margins, exacerbates their vulnerability, leading to a detrimental cycle affecting their entire business operation. 

As the industry contends with these challenges, the proposal is for a high-powered committee to address contractor grievances, improve contract terms, and establish fair compensation mechanisms.

Senior Advisor to the President on National Security and Chief of Staff, Sagala Ratnayaka, Governor of the Central Bank Dr. Nandalal Weerasinghe, Secretary of the Ministry of Finance Mahinda Siriwardena, along with other ministry secretaries and representatives from related institutions and the construction industry participated in the discussion.