News

Recovering from the challenging situation that Sri Lanka is currently facing requires a significant emphasis on the accountability of public officials in matters such as financial control, anti-corruption measures and adherence to the rule of law, Chief of Staff to the President Sagala Ratnayaka said.

He made this observation at a meeting with officials of the International Monetary Fund (IMF) and heads of state agencies yesterday (20).

Ratnayaka, also senior presidential advisor on national security, highlighted the important role of the government and its officials in this difficult period.

Officials of the IMF commended the government for its correct evaluation of the matters as they stand and noted the bilateral agreements reached on state agencies and the market, regulations, supremacy of the law, money laundering and fiscal control.

Rather than worrying about mistakes made in the past, the focus now should be on the essential reforms, with the IMF standing ready to support in meeting challenges and priorities in reforms, they also said.

Ratnayake stressed the importance of holding regular meetings to discuss progress and called for commitment by the line agencies.

Finance secretary Mahinda Siriwardena and Central Bank governor Dr. Nandalal Weerasinghe were among the other participants.

Pasindu Gunaratne, a young engineer, has been appointed new chairman of the National Youth Services Council (NYSC).

Gunaratne’s appointment was made yesterday (17) by youth affairs and sports minister Roshan Ranasinghe.

The minister has strong faith in his leadership qualities and commitment for empowering youths, for which he has been acclaimed.

A civil-engineer by profession, the 25-year-old is presently an undergraduate at Sabaragamuwa University and a law student.

He also holds a BEng (Hons) in Civil & Infrastructure Engineering from the Kingston University and a BSc (Hons) in Quantity Surveying & Construction from De Montfort University (UK).

A proud product of Royal College, Colombo, Gunaratne is also president of Lion’s Club of Colombo 07, making a considerable impact on that community.

Minister Ranasinghe expressed confidence that his leadership qualities and engineering background will help him to spearhead new projects and new beginnings to empower youths and nurture their skills for their future success.

The IMF Executive Board approved Sri Lanka’s program under the Extended Fund Facility (EFF) that will enable Sri Lanka to access up to $7 billion in funding, reported the President's Media Division.

President Ranil Wickremesinghe has expressed his gratitude for the support of the IMF and other international partners, said the PMD.

It added that the President committed to full transparency in all discussions with financial institutions & creditors, & to achieve sustainable levels of debt through prudent fiscal management & an ambitious reform agenda.

The IMF program is critical to achieving this vision & will help to improve Sri Lanka's standing in international capital markets, making it an attractive country for investors, talent, & tourists, said the President's Media Division.

Earlier this month, Sri Lanka received IMF-compatible financing assurances from its official creditors, including Paris Club members, India and China, allowing the IMF to convene an Executive Board and consider Sri Lanka’s request for a loan.

The program is expected to provide much-needed policy space to drive the economy out of the unprecedented challenges and instill confidence amongst all the stakeholders.

President Ranil Wickremesinghe welcomed the announcement:

“In the 75 years of Sri Lanka’s independence, there has never been a more critical period for ou economic future. Our official creditors have declared their support following continuous and positive engagements over the last few months, and we are pleased that the IMF Executive Board approved our program, enabling Sri Lanka to access up to US$ 7 billion in funding from the IMF and IFIs. From the very start, we committed to full transparency in all our discussions with financial institutions and with our creditors. I express my gratitude to the IMF and our international partners for their support as we look to get the economy back on track for the long term through prudent fiscal management and our ambitious reform agenda.

Since taking office last July, it has been my priority to stabilize Sri Lanka’s economy and achieve sustainable levels of debt. To do so, we have taken some tough decisions, but we did so with a commitment to widening our social safety nets, protecting the vulnerable, rooting out corruption and ensuring we can grow an inclusive and internationally attractive economy. The IMF program is critical to achieving this vision for our country, and we are committed to successfully completing the IMF program and achieving debt sustainability. We will continue to engage with all our creditors, and I encourage both our bilateral and commercial creditors to strengthen and foster coordination in the context of our forthcoming engagement. The IMF program will also be imperative to improving Sri Lanka’s standing in and access to international capital markets, and it will demonstrate that Sri Lanka is once again a country attractive to talent, investors and tourists.”

SJB media spokesman S.M. Marikkar has urged the government to implement the tax policy introduced in 2019 by the then finance minister, the late Mangala Samaraweera.

Speaking to the media yesterday (16), Marikkar referred to the strike by trade unions on the previous day against an unfair tax policy, increase in electricity tariffs etc.

The President’s Media Division (PMD) failed in its propaganda war of updates every five minutes on uninterrupted train and bus operations and banks being kept open to claim the strike was a failure.

It completely ignored the sorry plight of the people, he said.

The PMD also finds the Rupee’s appreciation against the US dollar newsworthy, but keeps silent when it started to slide once again, said the SJB MP.

Meanwhile, the FPA’s Dr. Nalaka Godahewa said the taxes imposed in a hurry were unbearable for the public.

On the decline of the rupee again, he said, it will become worse once the IMF deal comes through, and noted a strengthening of the economy was the only option.

While imposing taxes to raise revenue, the government should be sensitive to public issues as well, he advised.

In the meantime, SLPP’s Mahindananda Aluthgamage said everyone should survive for the next six months amid all difficulties, or else the economy would suffer further.

The government has decided to launch a programme where a bank loan of Rs. 1.1 million will be granted without any interest to students who have excelled at the Advanced Level Examination but do not get the opportunity to enter state universities due to strong competition.

This loan will be given to enable them to study in private universities in the country for a degree suitable for obtaining a job.

State minister of finance Ranjith Siyambalapitiya said that the loan facility will be granted to students with high Z-Scores to study courses where there are ample job opportunities through private universities.

Previously, a sum of Rs. 800,000 was granted interest-free through the Bank of Ceylon for students to enable them to engage in degree courses.

Under the new programme, Minister Siyambalapitiya said that a sum of Rs. 800,000 as well as Rs. 300,000 on behalf of daily expenses will also be provided.

It has been extended so that students can obtain this facility through the People’s Bank as well as the National Savings Bank.

The cabinet paper regarding this is to be submitted to the cabinet by the minister next Tuesday.

Arrangements will be made in the future to grant this facility to 500 students based on instructions of President Ranil Wickremesinghe.

After obtaining this loan facility and then leaving the university, while engaged in a job this loan has to be paid back within a year.

Since loan interest is 25% at present, students who want to study in universities are unable to engage in higher education by obtaining a loan to pay costs.

Their parents also cannot bear the burden of such high-interest loans.

Taking this situation into consideration the State Minister said that the loan facility for higher education without interest which had been halted will recommence.

(sundayobserver.lk)

Local election monitor People's Action for Fair and Free Elections (PAFFREL) said the prevailing situation does not allow the holding of the local government polls on April 25.

Its executive director Rohana Hettiarachchi also noted the government was ignoring the court ruling on the election, while its MPs hid behind parliamentary privileges and criticized the verdict.

The decisive factor here is whether the government recognizes the people’s democratic rights by holding elections on time, said Hettiarachchi.

Power and Energy Minister Kanchana Wijesekara says that the Ceylon Electricity Board has informed of a breakdown in unit 3 of Norochcholai power plant.

“Unit 3 was due to undergo major overhaul maintenance in April. To ensure an uninterrupted power supply, CEB owned Diesel & Fuel Oil Power plants will be used. There will be No power cuts due to the breakdown.” Minister said.

Sri Lanka's economy shrank 7.8% in 2022 from the previous year, government data showed on Wednesday, as the country struggled with its worst financial crisis in more than seven decades.

The island's fourth-quarter GDP contracted 12.4%, according to the figures.

Sri Lanka's growth is expected to shrink by 3% this year, Moody's Investors Service said on Monday but growth is expected to rebound in 2024.

Economic mismanagement coupled with the impact of the COVID-19 pandemic left Sri Lanka severely short of dollars for essential imports at the start of last year tipping the country into the worst financial crisis since Independence from the British in 1948.

Sri Lanka is waiting for a $2.9 billion bailout program from the International Monetary Fund (IMF) to be finalised on March 20.

“These numbers are broadly in line with expectations. In the last three months of 2022 Sri Lanka was hit by very high inflation, fuel shortages and high interest rates,” said Sanjeewa Fernando, Senior Vice President Research at Asia Securities.

“For the rest of this year, with IMF funds expected, the central bank should be able to keep the currency strengthened, eventually reduce interest rates, and continue to see inflation ease."

The state-run Census and Statistics Department said that the agriculture sector shrank 4.6%, while industries contracted 16%, and services dropped 2%, from a year earlier.

Sri Lanka's economy shrank 11.8% in the July-September quarter from a year ago, the second-worst quarterly contraction ever for the country.

Sri Lanka aims to announce a debt-restructuring strategy in April and step up talks with commercial creditors ahead of an IMF review of a bailout package in six months, its central bank governor told Reuters last Thursday.

Source: Reuters

Royal College Colombo have won the 144th edition of the Battle of the Blues with a comprehensive 181 run win against S. Thomas' College Mount Lavinia.

This is the 36th time that Royal College have won the Battle of the Blues.

Royal, who were put into to bat first in the match held at the Colombo SSC ground, declared their 1st innings on 326 runs for the loss of 8 wickets.

In reply, S. Thomas' were restricted to just 153 runs.

Royal College then declared their 2nd innings 168 for the loss of 4 wickets, setting the Thomians a massive target of 342 runs to win.

However, S. Thomas' were only able to manage 161 runs in their 2nd innings.

Dasis Manchanayake, who led Royal College, scored a magnificant century in the first innings and scored 57 runs in the second innings.

Royal College last won in 2016.

The Supreme Court today (March 16) issued an interim order preventing the Local Government Election for the Kalutara Pradeshiya Sabha from being held.

A three-member Supreme Court bench delivered the interim order, granting leave to proceed with a petition challenging a Returning Officer’s move to reject a nomination paper submitted by the New Lanka Freedom Party (NLFP). Justices Preethi Padman Surasena, Gamini Amarasekara and Janak de Silva sat for the hearing.

Representing NLFP’s secretary W.K.T. Waragoda, Attorney-at-Law Viran Corea said the nomination paper had been rejected by the respective Returning Officer as one of the affidavits submitted along with it did not contain the official seal of the Justice of Peace.

Explaining that the other affidavits submitted with the nomination contained the relevant official seal, the lawyer noted that the Returning Officer’s move to reject the nomination paper is against the law.

Taking the presented submissions into consideration, the judge bench granted leave to proceed with the petition hearing.

Thereby, fixing the petition hearing for May 12, the judge bench also issued an interim order preventing the LG election for the Kalutara Pradeshiya Sabha from being held until the conclusion of the legal matter.

The Government Printer insists that the already-printed ballot papers of the postal voting in 2023 Local Government Election cannot be handed over to the Election Commission until the required payments are made.

According to Government Printer Gangani Kalpana Liyanage, the Printing Department has spent more than Rs. 200 million thus far to print ballot papers, despite receiving an initial payment of just Rs. 40 million.

Printing of ballot papers for 17 electoral districts is completed and they need to be proofread under the police security, Liyanage explained, noting that the Printing Department is yet to receive the remaining payments for the election-related work it has done so far.

In light of this matter, Liyanage said the Printing Department would not be able to hand over the postal voting ballot papers to the Election Commission on Monday (March 20) as planned.

Meanwhile, election chief Attorney-at-Law Nimal G. Punchihewa said the Local Government Election can be held on the scheduled date if the election body receives the ballot papers over the next few days.

The 2023 Local Government Election, which was initially planned to be held on March 09, was later rescheduled for April 25.

Meanwhile, as the term of office of 340 local government bodies expires at midnight tomorrow (March 19), the mayors and the Pradeshiya Sabha chairs of these institutions have been asked to return the official vehicles given to them without delay.

The allowances given to the members of these local government bodies would be paid only until March 19, the Ministry of Public Administration, Home Affairs & Provincial Councils & Local Government mentioned.

The information of nearly 1.1 million applications for welfare benefits out of 3.7 million has been verified as of now, State Minister of Finance Shehan Semasinghe said.

According to the President’s Media Division (PMD), the applications from 334 Divisional Secretariats have been verified through an ongoing information survey.

The State Minister further said that the said information survey will conclude on 31 March 2023.

Emphasizing the need for accurate information, State Minister Semasinghe warned that the failure to submit the necessary information by the deadline will result in the loss of welfare benefits.

In October 2022, the Government launched the restructured welfare benefits programme for vulnerable persons/families targeting 3.1 million beneficiaries.

Vulnerable persons/families were informed to register for the new welfare benefits programme via applications from the following website – wbb.gov.lk