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President Ranil Wickremasinghe had pointed out the need to expand and develop the facilities of Colombo National Hospital, Kalubowila Hospital and the Sri Jayawardenepura Hospital, as well as the need for policy change in the entire health sector, during a meeting held with the Government Medical Officers' Association.

During the meeting, the Government Medical Officers' Association had handed over the report of the three-member committee appointed to probe the shortage of drugs in the country, and the problems faced by the health sector and doctors were discussed at length.

President Ranil Wickremasinghe stressed the need for an urgent system to resolve the difficulties faced by the people due to the shortage of medicines and the rise in the price of medicines. The President also said that he will discuss with the World Bank and the International Monetary Fund about other needs in the health sector including medicines.

Meanwhile, the report of the relevant committee has identified the shortcomings in the coordination between the Ministry of Health, Medical Supplies Division, State Pharmaceutical Corporation, State Pharmaceutical Manufacturing Corporation and National Drug Regulatory Authority, and had proposed for the appointment of a coordination committee by the Ministry of Healthand for the committee to submit monthly progress reviews.

The report of the committee has also proposed to appoint a technical committee to study the recommendations of the Auditor General submitted within the last five years in order to solve the problems that have arisen due to the lack of action taken regarding the recommendations of the Auditor General's reports in the last few years.

Representatives of the Government Medical Officers Association pointed out that there is a shortage of medicines and insulin for cancer patients, and steps should be taken to solve the problem as soon as possible.

The Government Medical Officers Association also submitted their proposals to the President regarding the payment of additional duty allowances for doctors, official transport facilities for doctors and the revision of those allowances, the revision of the government administrative circular regarding foreign leave and the importation of electric vehicles on tax concessions for public service professionals.

The GMOAhad also pointed out that there is a need to introduce a professional development program to upgrade the grades of all universities including Raja Rata, Peradeniya, and Karapitiya approved by the University Grants Commission, and even though the universities offer such study courses, the service constitution of the Ministry of Health has not approved it.

The Government Medical Officers' Association pointed out the difficulties in sending foreign exchange to students studying abroad, and the President emphasized that higher education policies in this country should be changed in such a way as to earn foreign exchange.

News 1st

The prices of each category of cigarettes will be increased by Rs. 3.00, Rs. 5.00, Rs. 10.00 and Rs. 15.00 each with effect from today (Sep 01).

The cigarette price hike is in line with the increase in Value-Added Tax (VAT).

Presenting the interim budget for the remainder of the fiscal year 2022, President Ranil Wickremesinghe said VAT would be increased from 12% to 15% effective from September 01.

The price of a Litro domestic gas cylinder will further reduce on Monday (5).

Litro Chairman Muditha Peiris said the decision was taken following the reduction in prices of gas in the world market.

The new gas prices will be announced soon.

The International Monetary Fund (IMF) said today (01) it has reached a staff-level agreement with Sri Lanka to provide 2.9 billion US dollars over four years to help salvage the country from its economic crisis.

An IMF team visiting Sri Lanka said in a statement that the preliminary agreement is subject to approval from the agency’s management and executive board “contingent on the implementation by the authorities of prior actions, and on receiving financing assurances from Sri Lanka’s official creditors and making a good faith effort to reach a collaborative agreement with private creditors.”

The statement said,

“IMF staff and the Sri Lankan authorities have reached a staff-level agreement to support Sri Lanka's economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about USD 2.9 billion.

The objectives of Sri Lanka’s new Fund-supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.
Debt relief from Sri Lanka’s creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps.

Financing assurances to restore debt sustainability from Sri Lanka’s official creditors and making a good faith effort to reach a collaborative agreement with private creditors are crucial before the IMF can provide financial support to Sri Lanka.

The statement also said,

An IMF mission led by Peter Breuer and Masahiro Nozaki visited Colombo from August 24 to September 01 to continue discussions on IMF support for Sri Lanka and the authorities’ comprehensive economic reform program.

Key elements of the programme are:

# Raising fiscal revenue to support fiscal consolidation. Starting from one of the lowest revenue levels in the world, the program will implement major tax reforms. These reforms include making personal income tax more progressive and broadening the tax base for corporate income tax and VAT. The program aims to reach a primary surplus of 2.3 percent of GDP by 2024.

# Introducing cost-recovery based pricing for fuel and electricity to minimize fiscal risks arising from state-owned enterprises. The team welcomed the authorities’ already announced substantial revenue measures and energy pricing reforms;
# Mitigating the impact of the current crisis on the poor and vulnerable by raising social spending, and improving the coverage and targeting of social safety net programs;

# Restoring price stability through data-driven monetary policy action, fiscal consolidation, phasing out monetary financing, and stronger central bank autonomy that allow pursuing a flexible inflation targeting regime. A new Central Bank Act is a cornerstone of this strategy;

# Rebuilding foreign reserves through restoring a market-determined and flexible exchange rate, supported by the comprehensive policy package under the program;

# Safeguarding financial stability by ensuring a healthy and adequately capitalized banking system, and by upgrading financial sector safety nets and regulatory standards with a revised Banking Act; and

# Reducing corruption vulnerabilities through improving fiscal transparency and public financial management, introducing a stronger anti-corruption legal framework, and conducting an in-depth governance diagnostic, supported by IMF technical assistance.

The Minister of Energy, Kanchana Wijesekara says that he discussed the proposals of the CEB reforms committee on Sunday (4).

The committee, which was recently appointed by the Minister for the purpose of reforming the Ceylon Electricity Board, has met with development agencies, sector experts, stakeholders and is also due to meet political parties and the Public Utilities Commission of Sri Lanka (PUCSL) next week.

The Minister added that the main framework will be presented to the cabinet by the end of the month.

The reforms committee includes the following members;

– Dr RHS Samaratunge – Former Secratary, Finance Ministry – MMC Ferdinando – Former Secratary, Ministry of Power & Energy – Dr Susantha Perera, Former AGM, Ceylon Electricity Board, – Thilan Wijesinghe – Former Chairman, Board Of Investment, – Saliya Wickramasuriya – Chairman, Petroleum Development Authority & Director General, Port City Economic Commision – President’s Counsel Nihal Jayawardhane – Former Legal Consultant to the Public Enterprise Reforms Commission – Attorney at Law Harsha Fernando – Former Senior State Counsel at the AGs department – Chandana Wijesinghe – Director, Ministry of Power & Energy.

Sri Lanka and the International Monetary Fund (IMF) have reached a preliminary agreement on an emergency loan and a formal announcement will be made tomorrow (September 1st), Reuters reported.

The Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe also said yesterday that Sri Lanka has made “good progress” in the negotiations with the International Monetary Fund (IMF), which are aimed at clinching a bailout package.

“I can announce that we have made good progress in the negotiations with the IMF. Hopefully, we will be able to reach the first milestone, a staff-level agreement with the IMF soon,” the central bank chief told reporters in Colombo. “Once we reach that agreement with the IMF, it means that we have a credible program in our hands.”

Many people are talking about whether Gotabaya Rajapaksa, who returned to Sri Lanka, will continue to engage in active politics. In a press conference held recently, Podujana Peramuna MPs stated that they would give their utmost support if Rajapaksa comes to Parliament and becomes the Prime Minister.

However, it is reported that there has been no discussion regarding the future political affairs of the former president or his accession to parliament.

Meanwhile, Podujana Peramuna’s National List MP Seetha Arambepola has told the media that she is ready to give up her MP position if Gotabhaya Rajapaksa intends to come to Parliament. However, the MP also mentions that such a request has not been made by the party or Rajapaksa.

Arambepola further states that the story of the former president coming to Parliament is a false news spread through social media.

The Hydrology and Disaster Management Division of the Irrigation Department has issued an ‘Amber’ flood early warning for the catchment areas of the Kalu Ganga basin.

The advisory is in effect for a period of 24 hours from 3.00 p.m. today (Aug 31).

It further states that there is a possibility of a considerable flood situation in low-lying areas of Kalu River valley situated in Pelmadulla, Nivithigala, Ratnapura, Kuruvita, Ayagama and Elapatha Divisional Secretariat Divisions.

The advisory was issued upon analyzing the analysis of the current rainfall situation and river water levels of Hydrological Stations in Kalu Ganga.

Accordingly, residents and motorists passing through the aforementioned areas are advised to pay high attention in this regard.

President Ranil Wickremesinghe has issued an Extraordinary Gazette Notification declaring all services connected to the supply of electricity, petroleum, fuel, and health services as essential public services.

Accordingly, the gazette, dated 3rd September, has declared the supply of electricity, the supply or distribution of petroleum products and fuel as essential.

Moreover, President Wickremesinghe has also declared all service, work or labour done in connection with the maintenance, and the reception, care feeding, and treatment, of patients in hospitals, nursing homes, dispensaries, and other similar institution, as essential.

Another Sri Lankan lawyer filed an application with the Court of Appeal seeking punishment against Sri Lanka Podujana Peramuna Parliamentarian Sanath Nishantha for contempt of court.

The petition was filed by Attorney-at-Law I. G. Vijitha Kumara on Tuesday (30).

The petition states that Sanath Nishantha was named as a suspect by the Attorney General in the incident surrounding the attack on the GotaGoGama Protest Site at Galle Face on the 9th of May 2022, and thereafter he was arrested by the CID, remanded by the Fort Magistrate's Court, and then released on bail.

It added that the respondent Sanath Nishantha, who is out on bail, speaking to reporters at the SLPP Office on the 23rd of August 2022, made comments that are in contempt of court.

The petition notes that the comments made by the MP brought disrepute to the courts, and challenged the Rule of Law.

It notes that the statements had been made to break the trust the people have placed with the judiciary.

After fleeing the country nearly eight weeks ago in the face of strong public protests, former president Gotabaya Rajapaksa returned home last night (02) to a welcome by a large gathering of MPs supporting him.

More than 30 politicians were there to garland him when the Singapore Airlines flight SQ 468 carrying him touched down at Katunayake Airport at 11.47 pm.

They included Prasanna Ranatunga, Tiran Alles and Namal Rajapaksa.

Gotabaya Rajapaksa left the airport via the VIP lounge, said an airport spokesman.

Escorted under tight security, he arrived at his official residence at Malalasekara Mawatha, Colombo 07 at 12.50 am.

Earlier in the day, he departed Thailand and arrived in Singapore where he had a stay of nearly three hours to catch the flight back home.

The Department of Irrigation has issued an early flood warning over the next two-days from tonight (30).

The Department said a flood situation may occur in areas surrounding the Atthanagalu, Kalu, Kelani, Ging, Nilwala or Mahaweli Rivers.

Accordingly, the Department requested the public residing in these areas to remain vigilant of flood situations that may occur during the next few days with rain predicted as well.

The public has also been requested to refrain from bathing or crossing rivers in upper branches of rivers.