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The expiration of US Generalized System of Preferences (GSP) for Sri Lanka and 119 other countries, with effect from today, will not have any negative impact as every country will need to pay the same duty and be placed on a level playing field, Deputy Minister of National Policies and Economic Affairs, Dr. Harsha de Silva said.

The US GSP program has been renewed by US Congress as a normal practice and it applies to all 120 countries.

“So we are not singled out and there is no disadvantage at all. All the countries will be on the same level of competition like just now. In any case, only US$173m of $2.8 billion of exports to US last year had US GSP. Apparels only $27m,” the Deputy Minister asserted.

According to a research by the Institute of Policy Studies, although nearly three-quarters of Sri Lanka’s exports to the United States are concentrated on apparel and articles, only about 0.2% of the current apparel exports are eligible to receive GSP concessions. Exporters of rubber, the second largest export product to US, will have only about a quarter of their exports covered under GSP concessions.

Meanwhile, analysts pointed out that when the US GSP scheme was authorised for renewal in 2015 by the former United States President Barack Obama, he had only signed the ‘Trade Preferences Extension Act of 2015’ on June 29, 2015 almost two years after it expired in 2013. Thereafter, the preferential duty-free tariffs to the US market for selected products were applied retroactively for the years that were missed out.

The scheme, instituted in 1974 and renewed periodically is designed to promote trade in developing countries. The full list of GSP-Eligible Beneficiaries (as of March 2017) is found on this link

Sources within the Financial Crimes Investigations Department (FCID), report that 97 files sent to the Attorney General’s (AG) Department for advice on further action had not returned with a reply. As a result of many officers complain that they are wasting their time with nothing to do.

Officers remarked that if a response from the AG’s Department had been given, they would have been able to take all necessary legal action against those responsible.

The FCID has received over 500 complaints regarding large-scale fraud and of that number, 300 are being investigated into.

Among these cases, the cases regarding the assets of certain individuals have been handed over to the Commission to Investigate Bribery or Corruption (CIABOC) or other relevant agencies.

CIABOC, however, has no authority to investigate cases regarding money laundering and thus these cases were sent to the FCID. These are among the files completed and handed over to the AG’s Department, it was learnt. The officers hoped that they would receive a reply regarding these files by at least early next year.

Source : Daily News

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Presidential Secretariat officials will study the report of the Commission of Inquiry (COI) appointed by President Maithripala Sirisena to probe the Central Bank Treasury bond issue before deciding on what course of action to take. A senior Presidential Secretariat official said the report was a comprehensive one and they would need some time to study it. The report was handed over to President Sirisena by the Commission’s Chairman, Supreme Court Judge K. T Chitrasiri, last afternoon.

“It’s a complete report with all the recorded evidence, annexures and recommendations,” he said. The report, numbering 1,400 pages, includes around 100 annexures. The evidence of 70 witnesses who appeared before the Commission, too, is included.

The handing over of the Report brings to an end the work of the three-member Presidential Commission of |Inquiry (COI) appointed in January to inquire into the issuance of Central Bank Treasury Bonds from February 1, 2015, to March 31, 2016.

The other members of the commission were Supreme Court Judge Prasanna Sujeewa Jayawardena and former Deputy Auditor General Veluppillai Kandasamy.

Source: The Sunday Times

The final report of the Presidential Commission of Inquiry into the Bond Issuance of the Central Bank of Sri Lanka was handed over to President Maithripala Sirisena today, informed sources said.

Al three members of the commission were said to be in attendance at the handover. According to sources, the President is now expected to hand over the report to the Attorney General’s Department.

Prime Minister Ranil Wickramasinghe, Former Minister of Finance Ravi Karunanayake, Minister Malik Samarawickrama, Minister Kabir Hashim, Former Central Bank Governor Arjuna Mahendran, Owner of Perpetual Treasuries his Son-in-law Arjun Aloysius, Perpetual Treasuries CEO Kasun Palihawadana and many government officials appeared before the commission.

The Commission was appointed by President Maithripala Sirisena to begin an inquiry into the issuance of Bonds that took place during the time period February 1, 2015, to March 31, 2016.

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The Central Bank of Sri Lanka (CBSL) is said to have asked the Bank of Ceylon (BOC) to be the managing agent for the financial arms of the EAP Group–Edirisinghe Trust Investments (ETI) and Swarnamahal Financial Services PLC.

Public Enterprise Development Minister Kabir Hashim had met the BOC board this week as part of negotiations for a possible management deal, authoritative sources said. Should the BoC be made managing agents, there would be more discussions in the coming weeks on terms and conditions, they said.

The businesses of EAP Holdings–including its broadcast and media arms–are up for sale but it is understood that the CBSL is keen to strike a management arrangement for the finance companies of the group. A due diligence has already been done by auditors and studied by the BOC.

ETI, established 40 years ago, offers services in the areas of fixed deposits, gold loans, leasing, hire purchase, personal loans, business loans and mortgage loans. It has 46 branches around the country.

Swarnamahal Financial Services is a listed company licensed by the CBSL. It has 11 branches and six pawning centres.

EAP deal broker detained at BIA

Meanwhile, a Malaysian businessman negotiating on behalf of a Singaporean company to buy EAP Group businesses was detained with three others at the Bandaranaike International Airport (BIA) last month while attempting to smuggle out foreign currency.

Dollar notes amounting to US$ 50,000 were found in the hand baggage of Jaya Sudhir Jayaram. Two others–one of them was his son–also had US$ 50,000 each in their possession while the fourth carried US$ 58,000. This is a total of US$ 208,000 or Rs 31.8 million.

The detection took place on November 10. Two suspects were stopped around 7 am at boarding gate 14 by Airport and Aviation of Sri Lanka (AASL) security when the money showed up on the x-ray machine near the departure lounge. Both were Malaysian nationals scheduled to leave on UL314 to Kuala Lumpur. An inspection led to the discovery of a total of US$ 100,000.

.Upon questioning, Mr Jayaram (who said he was involved in a power project in Vavuniya) had claimed the money was the proceeds of a win at a popular casino in Colombo. However, he could not offer documentary evidence for this claim.

Due to substantial political pressure, Mr Jayaram was released without penalty, reliable BIA sources said. He left the country (for Kuala Lumpur) shortly after his detention–before an inquiry could be conducted–after handing over the US$ 50,000 that had been in his possession to one of the other suspects. He has given a guarantee that he will return for an inquiry when it is scheduled.

The inquiry into non-declaration of currency by two other suspects (who were detained at the gate) was held on the same day. They were fined Rs 200,000 each and released. The undeclared currency was forfeited. The inquiry into the actions of the fourth suspect was postponed till November 23. All three left for Kuala Lumpur in the night of the same day. Mr Jayaram was released in the morning.

Neither Mr Jayaram nor the fourth suspect honoured their word by presenting themselves for the subsequent Customs inquiry, the Sunday Times reliably learns. The proceedings were, therefore, conducted ex-parte. The undeclared currency was forfeited with no penalty imposed.

The Malaysian businessman has been in and out of Sri Lanka over the past few months. Authoritative political sources said he is a facilitator for several business deals–including the Horton Square (Pvt) Ltd, a proposed mixed development project in Horton Place, and power projects. Straits Grid Pte Ltd, the Singaporean company vying to invest in the EAP Group, is also an energy company.

The offence the group was booked on is non-declaration of currency. Under regulations, anyone taking more than US$ 10,000 in any form of foreign currency, including notes, bank drafts or travel cards, must declare it to Sri Lanka Customs. Anyone taking currency notes of more than US$ 5,000 must also declare it.

The EAP Group is in negotiations to sell its businesses to Straits Grid Pte Ltd. The negotiations are being fronted by Mr Jayaram, who is a longstanding business partner of R.M. Manivannan, Chairman of Supreme Global Holdings. He was most recently listed as a director–along with Mr Manivannan–of Horton Square (Pvt) Ltd, a proposed mixed development project in Horton Place. Mr Jayaram’s address entered in the company registration form was in the British Virgin Islands and common to hundreds of other offshore entities from around the world.

Source : The Sunday Times

The time period for the public to hand over defaced currency has been extended for a further six months Central Bank sources say. The Central Bank is said to have taken this decision on direction of Premier Ranil Wickramasinghe

The Prime Minister has directed the officials to extend the deadline due to difficulties faced by the public as the compulsory deadline to hand over the defaced notes were set for December 31, 2017. However public had voiced many concerns and issues over the move which has prompted in extending the deadline.

Therefore a government spokesperson said the public now need not be alarmed as an extension has been given to hand over all currency notes which had been damaged or defaced.

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It has now been revealed that all recent deaths in Jaffna had been caused by identified illnesses.

A formal investigation into all deaths reported from Jaffna in the last three months was conducted by a team led by Director of the Epidemiology Unit, Anil Dissanayake. According to this investigation, it has been concluded that all reported deaths were due to identified illnesses.

Accordingly, medical evidence indicates that all these deaths can be clinically confirmed. It has also been confirmed that these deaths have not happened within one family or among close relatives.

The Epidemiology unit of the Ministry of Health says the rumours that the deaths are due to an unidentified reason are false and that is has been proven scientifically.

The unit further added that therefore media reports that deaths of nine persons within one family had occurred due to an evil spirit are untrue.

The Railway Control Room said additional train services will function until January 7 to accommodate crowds returning from holiday destinations.

Railway Additional General Manager Wijaya Samarasinghe said that an additional train service to Badulla and Bandarawela would also function until January 7.

Source: Daily News

The questionable bond deal of the Central Bank in 2015 has caused losses to the country according to the report on the scam handed over to the President Maithripala Sirisena yesterday.

Reliable insider sources have revealed that the report has also named several individuals as responsible for the incurred loss.

The final report of the Presidential Commission of Inquiry into the Bond Issuance of the Central Bank of Sri Lanka was handed over to President Maithripala Sirisena yesterday by members of the commission, its secretary S. Udugamasooriya, Supreme Court Judge P.S Jayawardene, Retired Deputy Auditor General V. Kandasamy.

Al three members of the commission were said to be in attendance at the handover. According to sources, the President is now expected to hand over the report to the Attorney General’s Department.

Prime Minister Ranil Wickramasinghe, Former Minister of Finance Ravi Karunanayake, Minister Malik Samarawickrama, Minister Kabir Hashim, Former Central Bank Governor Arjuna Mahendran, Owner of Perpetual Treasuries his Son-in-law Arjun Aloysius, Perpetual Treasuries CEO Kasun Palisena and many government officials appeared before the commission.

The Commission was appointed by President Maithripala Sirisena to begin an inquiry into the issuance of Bonds that took place during the time period February 1, 2015, to March 31, 2016.

The wife of the Eastern province governor Rohitha Bogollagama, Deepthi Bogollagama is said to have threatened a group of Tamil devotees while visiting a religious site in Trincomalee. The incident had occurred during a visit to the site which is currently under dispute regarding its heritage. Her disruptive behaviour before the Police and government officers is said to have angered the villagers of Sampur.

Deepthi Bogollagama was seen on tape walking over ‘Kolam’ drawn at the religious site while wearing shoes and threatening the people present. She was recorded in the act at the Skanda Kumara Kovil on the Maddalama hill in Sudaikudah village belonging to the Muttur District Secretariat.

As the women called out to their deities Mrs Bologgalagama is seen threatening the group saying “You will all be dealt with”.

She was later led away by the Police with the villagers calling out for her to be removed from the site.

The governor was at the time visiting the site to inquire into the claims by two Buddhist monks that the religious site has Buddhist archaeological value who had then gone on to coerce the Kovil administration to stop digging a well in the premises.

According to the Kovil’s Hindu priest Rasaiah Padmanathan, the site has long been a religious site where Gods Skanda, Kaali and Bahirawa were worshipped by devotees.

However, after claims were made the site is a Buddhist archaeological site the Governor has ordered the Trincomalee GA to look into the registration of the Kovil and to mark the boundaries of the area.

He has also ordered to stop the digging of the well in the Kovil premises while promising to provide water through a browser.

The Kovil has now been provided with special protection the Police said.

Source : radiogagana

The UNP election campaign office located on the University Road in Boralesgamuwa was attacked on last night. The office had been declared open just earlier yesterday. The decorations and several lighting equipment had been damaged in the attack.

 The attacked campaign office was established by UNP listed candidate Bandula Chandrasekara who had handed over his nomination for the Boralesgamuwa Urban Council. He is a Central Committee Member of the Jathika Hela Urumaya (JHU), part of the United National Front (UNF). The office had been located at his resident. Sources say Police are carrying out further investigations into the incident.

Bandula Chandrasekara is well known political and social activist. He played a major role in Presidential Election in 2015 for the victory of the common candidate in order to form the Alliance government.

The United States’ Generalized System of Preferences (GSP) program for Sri Lanka and other countries expires on December 31, 2017. The United States Congress has not re-authorized GSP before adjourning for the year.

The immediate effect of GSP expiration is GSP eligible imports to the United States from Sri Lanka and other GSP beneficiary countries and territories will be subject to non-preferential duties beginning January 1, 2018, the US Embassy in Colombo said today.

The United States says it is proud to serve as the top export market for Sri Lanka. According to the Global Trade Atlas, in 2016, the United States imported $2.8 billion of Sri Lankan goods.

U.S. Customs and Border Protection’s web site has a page dedicated to GSP program information with detailed information on importation procedures during a program lapse.

Source : Colombo Gazette