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Gold pawning increases to LKR 241 billion

The Central Bank yesterday said that gold pawning in the first nine months had reached LKR 241 billion, up from LKR 197 billion in the first six months, but was still only a fraction of overall credit. The Director of the Economic Research Department of the Central Bank, Dr. C. Amarasekara told reporters that in the first six months, total loans reached LKR 1,917 billion and eventually grew to LKR 3,976 billion by the end of September.

“There have been erroneous reports that gold pawning is increasing exponentially and making up a larger percentage of overall credit, but that is not the case,” he said.

Central Bank officials also said that despite the Budget proposal to increase the retirement age from 55 to 60 for the private sector, there had been no change to the administration of the Employees Provident Fund (EPF) and any such change would likely require an amendment to the EPF Act.

“There are seven criteria to be addressed in the EPF Act when making payments. If there is any change envisaged, then the Act has to be amended. The administration of the EPF is handled by the Labour Department and the Central Bank is only the custodian of funds and fund management. Labour authorities have to address any changes in payments, but currently there is no change in the practice,” he added.

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Heated debate on CESS on sanitary products in parliament

The taxation of women’s sanitary products became the topic at Sri Lanka's budget debate yesterday with the opposition claiming that the government has increased taxes on sanitary products in order to support the country’s struggling economy.

“Two years ago, Scotland took the bold step of providing free access to sanitary products for students. Today, they are on the verge of enacting free access to all. I wonder how long it would take Sri Lanka to realize the value of such a humane approach toward humanity,” Opposition Leader Sajith Premadasa said, criticizing what he termed the unfair taxation of women’s sanitary products.

Premadasa, the defeated candidate at the last Presidential election, promised to provide women with free sanitary products drawing ridicule from some sections of the current ruling party.

They gave Premadasa the nickname ‘Pad Man’ which he proudly used until the end of his election campaign.

However, the renewed debate on the matter came to a head when the government introduced a CESS of 15% on women’s sanitary products. Nevertheless, the government said the market prices of sanitary products would remain unchanged.

pad

“We wish to inform you that taxation on sanitary towels has not been increased. Pre-budget, a 30% "Custom Import Duty" (CID) was charged. Post budget, CID is reduced to 15% and a CESS of 15 % is introduced. Therefore taxation remains the same," State Minister Shehan Semasinghesaid.

"Further, we are compelled to retain the CID as a measure to ensure protection of local producers. As such, the government has not taken any measures which results in a price increase of sanitary towels,” Semasinghe said, clearing the air on the matter.

Many young members of the ruling party, including Minister Namal Rajapaksa and State Minister Kanchana Wijesekera, echoed Semasinghe’s views on the matter. However, the seemingly progressive views of the "Young Turks" of the ruling party on this issue were marred by a remark made by MP Geetha Kumarasinghe who said national security was more important than sanitary products.

Despite the government's assurance, activists in Sri Lanka continue to demand total removal of taxes on sanitary products as a way of ending “period poverty” — a dire issue faced by low-income women across the country.

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Victims appeal to AG to protect former CID chief's life

Victims who have had their loved ones murdered or forcibly disappeared have made an appeal to the Attorney General to safeguard the life of former CID Director Shani Abeysekera. In a letter to AG Dappula De Livera, the five victims, who have been subject to "grave and violent crimes under the laws of Sri Lanka," stated that the AG's Department was able to submit evidence pertaining to their cases thanks to the investigations conducted or supervised by Abeysekara in his capacity as an impartial senior officer of the Criminal Investigation Department (CID).

"After so many years of stonewalling, Mr. Abeysekara was one of the few impartial police officers who had the courage to seek justice for our families. If every public servant had the backbone, integrity and conviction of Mr. Abeysekara, our loved ones would still be alive today. By doing his job and seeking justice for those we lost, Mr. Abeysekara’s own life is now in danger. We owe a debt of honour to speak on his behalf," they noted.

The victims claim that Shani Abeysekera's life is in grave danger due to the threats on his life emanating from his investigations into crimes committed by powerful people. With news reports of the former CID Director contracting COVID-19 while in remand custody and subsequently being placed in military custody at Gallewa, Polonnaruwa, the victims said that he is at risk of retaliation.

"Yesterday, we learned that Mr. Abeysekara is said to have contracted COVID-19 in remand custody, and he is now in military custody at Gallewa, Pollonaruwa[2]. Placing him in military custody after he has helped your department bring charges against scores of military officers for kidnapping, torturing, extorting and murdering our family members places Mr. Abeysekara at grave risk of retaliation. It is clear to all who are willing to see that powerful people want to take Mr. Abeysekara’s life," they said.

Meanwhile, the Gampaha High Court yesterday (26) postponed the decision on whether to grant bail to former CID Director Shani Abeysekara until December 07, following a vigorous objection to bail made by the Attorney General’s Department. Drawing the AG's attention to this, they said that they were shocked to hear their objection with regard to granting bail.

"We were shocked to learn that when Mr. Abeysekara’s bail application was taken up today at the Gampaha High Court, your officers vigorously objected[3] to bail, showing complete disregard for protecting Mr. Abeysekara’s life. Why does your department take the position that Mr. Abeysekara’s life is worth less than that of former senior LTTE leader Pillayan, or any of the other suspects including drug dealers you have helped get bail during to the pandemic?" they said.

They implored the AG to reconsider his objection to granting bail to Shani Abeysekera and to the accord the same standard of compassion, care and consideration that you have shown to former terrorists and narcotics peddlers. "If even you fail to stand by Mr. Abeysekara when his life hangs in the balance, no police officer will dare to investigate serious atrocities in the future," they added.

The full letter is republished below.

Hon. Dappula de Livera, Attorney General, Attorney General’s Department, Hulftsdorp, Colombo 12. We, the undersigned, are victims of grave and violent crimes under the laws of Sri Lanka. According to evidence tendered by your own department to the Sri Lankan courts, our fathers and children respectively, have been murdered or forcibly disappeared by agents of the Sri Lankan military between 2008 and 2009. In all cases, your department was only able to lead this evidence before magistrates and high courts thanks to investigations conducted or supervised by Mr. Abeysekara in his capacity as a senior officer and later director of the Criminal Investigation Department (CID).

After so many years of stonewalling, Mr. Abeysekara was one of the few impartial police officers who had the courage to seek justice for our families. If every public servant had the backbone, integrity and conviction of Mr. Abeysekara, our loved ones would still be alive today. By doing his job and seeking justice for those we lost, Mr. Abeysekara’s own life is now in danger. We owe a debt of honour to speak on his behalf.

Until late November 2019 when he was removed from the CID, Mr. Abeysekara was receiving personal security from the state due to grave threats on his life emanating from his investigations into crimes committed by powerful people. Since then he has had his security removed, been interdicted without a charge sheet, and been arrested on dubious, belated, contradictory statements made by witnesses in a murder case that was resolved years ago. Police investigating him have been accused of soliciting false statements from those they have questioned [1].

On 20th August, Mr. Abeysekara sought bail from the Gampaha High Court. The case was taken up on 27th August, 17th September, 6th October and 12th November. On every one of these occasions, your department either failed to appear in courts, failed to take up a position, or pleaded for more time to study the matter. As a result, Mr. Abeysekara was forced to remain in remand custody alongside the hardened criminals he had brought to justice for serious crimes.

Yesterday, we learned that Mr. Abeysekara is said to have contracted COVID-19 in remand custody, and he is now in military custody at Gallewa, Pollonaruwa[2]. Placing him in military custody after he has helped your department bring charges against scores of military officers for kidnapping, torturing, extorting and murdering our family members places Mr. Abeysekara at grave risk of retaliation. It is clear to all who are willing to see that powerful people want to take Mr. Abeysekara’s life.

We were shocked to learn that when Mr. Abeysekara’s bail application was taken up today at the Gampaha High Court, your officers vigorously objected[3] to bail, showing complete disregard for protecting Mr. Abeysekara’s life. Why does your department take the position that Mr. Abeysekara’s life is worth less than that of former senior LTTE leader Pillayan, or any of the other suspects including drug dealers you have helped get bail during the pandemic?

We beg you to reconsider your objection to granting bail to Mr. Abeysekara, and ask that you show this priceless investigator, key witness and national hero at the same standard of compassion, care and consideration that you have shown to former terrorists and narcotics peddlers. If even you fail to stand by Mr. Abeysekara when his life hangs in the balance, no police officer will dare to investigate serious atrocities in the future.

Yours faithfully,

Saroja Govindaswami Naganathan, Mother of Rajiv Naganathan, Abducted and disappeared on 17th September 2008

Don Mervyn Premalal Weerasinghe and Jamaldeen Jennifer Weerasinghe, Parents of Dilan Jamaldeen, Abducted and disappeared on 17th September 2008

Ameenathul Jiffriya Sabreen, Mother of Mohamed Sajid, Abducted and disappeared on 17th September 2008

Vishwa Govindasawami, Father of Pradeep Vishwanathan, Abducted and disappeared on 17th September 2008

Ahimsa Wickrematunge, Daughter of Lasantha Wickrematunge, Murdered on 8th January 2009

[1] CCD accused of pressuring CID sleuth to falsely implicate Shani, Daily FT (August 5, 2020), http://www.ft.lk/front-page/CCD-accused-of-pressuring-CID-sleuth-to-falsely-implicate-Shani/44-704124

[2] Ex-CID Chief Shani taken to Gallella COVID-19 treatment centre, The Morning (November 26, 2020), http://www.themorning.lk/ex-cid-chief-shani-taken-to-gallella-covid-19-treatment-centre/

[3] Bail for Shani to be decided on 07 Dec: Prisons chief instructed to take steps to save his life, The Leader (November 26, 2020), https://english.theleader.lk/news/925-bail-for-shani-to-be-decided-on-07-dec-prisons-chief- instructed-to-take-steps-to-save-his-life "

Related News:

"Take strong preventive measures to save Shani's life": HRCSL writes to Prisons chief

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Live streaming wildlife; Sri Lanka tourism goes virtual

Adapting to the new normal of the global travel and tourism industry, a strategic initiative will be taken by the Sri Lanka Tourism Promotion Bureau (SLTPB) to deploy technology to connect with the travellers both local and international in bringing out the experiences the island nation can offer.
 
First in this initiative is the promotion of ‘wildlife’ through live-streaming. SLTPB will collaborate with the private sector in driving this initiative and to live-stream the national parks of Sri Lanka, showcasing its exotic wildlife and natural habitat.
 
tourism tweet
 
This will enable Sri Lanka Tourism to maintain its top of the mind awareness among the travellers and to place itself as a diversity driven unique experience with an aspirational positioning. 
 
This is also expected to enhance Sri Lanka’s digital footprint and to build on its social media reach. As Sri Lanka Tourism takes a shift in focus from value to experience driven, ‘Wildlife’ streaming will be an important measure to reposition and to reinforce the message.

Live streaming will cover National Parks to include ‘Yala’, ‘Minneriya’ ‘Kaudulla’ and ‘Udawalawa’ and will focus on a wide spectrum to cover leopards, bears, elephants, crocodiles, birds, wildlife scenery and the spectacular behavior and movements of the astounding variety of birds and mammals.
 
The project is expected to expand to eight wildlife streaming video sessions of one hour each while enabling a global viewer base to engage, to entertain and to be informed of a world of colour, adventure and beauty.
 
These live streaming sessions will be telecasted through social media platforms to include youtube, instagram, twitter and facebook and pre promoted through social and digital platforms. Also will enable further sharing and telecasting through broadcast media reaching out to a wider audience base.

Though the initiative directly targets the wild life enthusiasts, it is not limited to one segment but will expand to a wider spectrum of global travellers.
 
It is also expected to contribute positively to the local industry, specially the wildlife service providers to capitalize in a post covid traveller scenario.
 
The live-streaming will create digital footage of ‘wildlife’ that can be deployed by the local tourism fraternity to keep in touch, to connect and to promote Sri Lanka as a destination and ‘Wildlife’ as an experience among its loyal base and new traveller segments.
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Karu warns against the suppression of media freedom

Former speaker and the chairman of the National Movement for a Just Society, Karu Jayasuriya has criticized attempts to suppress individuals posting material critical of the government on social media. He pointed out that even Buddhist prelates weren't exempted from criticizing the government and made a revelation at a press briefing held yesterday (26). "On October 12, the revered and learned theros of the Sri Lanka Amarapura - Ramanna Samagri Sangha Sabha also expressed their strong opposition to the 20th Amendment. The next morning, a group of police officers had visited the Ramanna Chapter and met with the members of the Ramanna Samagri Sangha Sabha, including the Ven. Anunayakae thero and questioned regarding those statements," Jayasuriya said. Pointing out that they refrained from divulging this incident at that time since it had the capacity to cause public resentment, the former speaker said that resorting to "question the most respected theros in the country for expressing dissenting views pertaining to the 20th Amendment should not have happened."

He further said:

"Attempts to suppress the freedom of expression have been the subject of heavy criticism in the country lately.

Many discussions are taking place in Parliament and in the society regarding the suppression of such rights.

The right to freedom of thought is a fundamental human right recognized by the United Nations. The right to freedom of expression is also enshrined in Article 14 of the Constitution of Sri Lanka.

Since 2013, the National Movement for a Just Society has endeavoured to protect these rights.

Therefore, we see it as our duty to explain the current circumstances directly to His Excellency the President and the society in general.

It is a fact that public opinion was against the 20th Amendment. At the same time, there was strong opposition from all religious leaders, including the Maha Sangha, as well as from civil society and intellectuals throughout the country.

On October 12, the revered and learned theros of the Sri Lanka Amarapura - Ramanna Samagri Sangha Sabha also expressed their strong opposition to the 20th Amendment. Following their lead, the Catholic Bishops' Conference and the National Christian Council of Sri Lanka also endorsed this view.

The next morning, a group of police officers had visited the Ramanna Chapter and met with the members of the Ramanna Samagri Sangha Sabha, including the Ven. Anunayakae thero and questioned regarding those statements.

We decided that it would be better to refrain from divulging this incident at that time since it had the capacity to cause public resentment and to take this up at an appropriate time later on. Today, we feel it is appropriate to reveal this fact.

Taking measures to question the most respected theros in the country for expressing dissenting views pertaining to the 20th Amendment should not have happened.

Such incidents can happen in a country with a dictatorship or in a society with an autocratic leadership, but as a democratic country, we should be ashamed of such things happening in Sri Lanka.

These incidents damage the dignity and reputation of the government. Therefore, we call for an immediate inquiry to be conducted into this matter and bring to justice those who are responsible.

The convenor of the Sinhala National Force,  Ven. Madille Pannaloka thero, has been questioned by the CID for exposing corruption and irregularities in the country.

Imthiaz Bakeer Marker, a former Minister of Mass Media and Information stated in Parliament that a document containing information on 200 journalists has been submitted to the CID.

Recently, Media Minister Keheliya Rambukwella has stated that new laws will be enacted to regulate social media and websites in Sri Lanka within a few weeks. We hope that laws hindering the freedom of expression are excluded.

We firmly believe that the media should adhere to ethics while respecting the existing laws and regulations in the country. It is very important to reach a consensus between the government and the media fraternity in this regard.

However, journalists have been barred from covering parliamentary sittings from the legislature.

Parliamentary staff including government officials and persons who provide various services are allowed to enter the Parliament complex. As such, it is irrational and incomprehensible to deprive journalists of the privilege to cover parliamentary proceedings.

We must not forget that Sri Lanka is a country that has been marred with a history of injustice towards journalists. On a personal note, it causes me great pain.

It is the responsibility of any government to administer justice for crimes that have been committed against journalists. We expected that from the previous government as well. However, none of those expectations were fulfiled.

Today, we live in a country where the perpetrators, who are responsible for many of the most serious and heinous crimes against the media, are still at large.

Although the current government is led by a new president, it cannot be considered a new government.

The incumbent Prime Minister is an experienced and senior politician who has twice held the executive presidency of this country. His Excellency the President was also a senior official in charge of security in both of those governments. Therefore, they have good experience and understanding with regard to governance. Accordingly, they are mature and well-informed to comprehend the facts we present today.

Generally, the first year of any government elected to office is considered to be a peaceful and pleasant period in which there is no conflict between the media and the government. It is usually devoid of harsh criticism from the general public.

But that has not been the case in our country over the past year. We deeply regret this. At the same time, it seems that the dark shadows that we experienced in the past are resurfacing. That is what we regret the most.

We would like to point out a number of unfortunate incidents that our journalists have faced in recent times.

CID officers had searched the Colombo residence of former Editor of the State-owned Sunday Observer and the Colombo correspondent of the New York Times, Dharisha Bastians, and taken away her computer. Close members of her family were also questioned by the CID. She is an internationally respected journalist.

Krishantha Cooray, the former Chairman of Lake House, was also persecuted in the same manner by making various unsubstantiated allegations. He is a world renowned journalist, CEO and a giant in the media industry.

Two journalists, Kanapathy Pillai Kumanan of the Veerakesari newspaper and Shanmugam Thavaseelan of the Hiru Media Network, were attacked and injured by a group of people while reporting on illegal logging. The assaulters caused damage to their camera equipment as well. We heard that a number of media organisations in this country had informed the IGP on this matter.

Another journalist, Indunil Wijenayake, who went to report on a sand racket in Monaragala was also assaulted.

We also saw how a police investigator threatened Akila Jayawardena, a photojournalist who was on duty at the Colombo High Court premises.

Many such unfortunate incidents have been reported in the recent past.

Meanwhile, the other issue that warrants our special attention is the threat faced by the ordinary citizens of this country who express views through social media.

One example is the tragic fate of Ramzy Razeek, who was arrested and detained for a long time last April. He was released on bail several months later.

The authorities of this country should note and understand the statement made by the Hon. Judge of the Colombo High Court during Razeek's bail application.

The Hon. Judge stated that every person is entitled to freedom of thought in accordance with Chapter 3, Article 10 of Sri Lanka’s Constitution.

He had also pointed out that the right to freedom of expression includes the right to protest in accordance with a number of judgments had been delivered by the Supreme Court of Sri Lanka on various occasions.

Despite this, it is shocking to see the continuous arrests of citizens of this country who express themselves.

We are most concerned about the authorities arresting ordinary citizens, who have only expressed certain views and opinions regarding the COVID pandemic.

Today, this unfortunate situation is receiving international attention. The UK government also issued a statement last week noting the deterioration of the human rights environment in Sri Lanka with the continuation of surveillance and intimidation of activists and human rights defenders.

We recognize that the fight against the COVID-19 pandemic is one that entails a national responsibility.

It is also clear that steps should be taken to prevent the spread of misinformation that could lead to civil unrest.

The best course of action is for the government to set up a proper mechanism to disseminate accurate information. If any misinformation is published, it is our responsibility to correct it.

We can take many examples from Great Britain.

Between 2012-2014, our movement led by the Most Ven. Sobhitha thero had to protest on the streets calling for the protection of media rights as well as journalists.

But we can see a stark difference on the use of media today in comparison to that period. New technology has enabled the progression of the media industry by a long way. Social media too has progressed tremendously. Today, it is not possible to deceive people all the time and the truth will be revealed sooner than later.

Therefore, the government must always choose the right path. If anyone wants to rule this country by suppressing media freedom and by disrupting or blocking social media, it will surely have to suffer the consequences.

If we want to engage with the world properly, if we want to attract investment to this country, if we want to retain the GSP concessions, if we want to maintain a good reputation internationally as a democratic country, then choose the right path.

The future prosperity of the country does not lie in the unlimited powers of the 20th Amendment but through the correct decisions taken by His Excellency the President.

I would like to make one more request from the President.

That is to seek the blessings of the Buddhist Advisory Council you have set up in order to seek advice and views of the Maha Sangha in the process of implementing policies of the government.

It will also help to preserve the dignity of your government as well as those who represent the Maha Sangha."

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President suspends Colombo LRT project

Sri Lanka has arbitrarily decided to terminate the Japanese-funded, US$ 2.2 billion Colombo Light Rail Transit (LRT) project, stretching from Malabe to Colombo Fort on the directions of presidential secretary Dr. PB Jayasundera. In a letter to Transport Ministry secretary Monti Ranatunga, he noted that this project is "very costly and not the appropriate cost effective transport solution for the urban Colombo transportation infrastructure."

Therefore, President Gotabaya Rajapaksa has directed to terminate the implementation of the project and close the project office with immediate effect, he informed. 

Light Railway

This decision has created confusion and misdeed among authorities of Japan International Cooperation Agency (JICA) which has already signed the loan agreement and the transport ministry has called tenders to award the contract to build the Colombo LRT system, informed source said.

The government’s priorities have shifted from mega projects to micro-level initiatives such as irrigation, agriculture, the 100,000km road project and 150,000 household water connections, he said. “Since the JICA agreement is an official loan contract, the government has to start negotiations and cancel it,” a senior treasury official said.

A cabinet committee that is reviewing projects is yet to present its report. However, various government sources indicated from earlier this year that the JICA-backed LRT was off.

They also said the project was likely to be a public-private partnership (PPP) rather than loan-funded.

This prompted JICA to urge the Sri Lanka Government in writing to follow “due process” if it intended to shift from Japanese funding to a PPP.

In a strongly worded letter to the Treasury Secretary in June this year, JICA’s Sri Lanka Representative Fusato Tanaka expressed “great shock” at hearing that “the current government has decided not to obtain JICA loans and instead to implement the project as a Public Private Partnership, and that necessary action would be taken to select a private investor."

However, the Ministry of Transport said that it has decided to temporarily suspend the Colombo-Malabe Light Railway Track System Project.

Transport Secretary Monti Ranatunga said that the Finance Ministry officials advised to suspend the project following foreign exchange concerns.

Interest rate of just 0.1%

In March last year, JICA signed a loan agreement with the Sri Lankan government to provide an official development assistance (ODA) loan to introduce a LRT system with 16 stations distributed over 15.7 kilometres of track in and around Colombo.

The project would use Japanese technology including rolling stock and electromechanical equipment. Completion was due in April 2026. The loan has a 12-year grace period and the interest rate is 0.1 percent.

Early termination to cost $100 million?

The government will have to incur a loss of around US$ 100 million if the LRT project is suspended or if there is a delay as a result of renegotiations. The entire project is currently scheduled to be completed by early 2025.

In addition, there will be certain penalties from the Japan International Cooperation Agency (JICA) – the funding agency of the project – as Sri Lanka has already signed an agreement on the project, a senior official closely connected to negotiations with JICA revealed.

The total consultancy cost of the project is estimated at around US$ 140 million for seven years, including the feasibility review, detailed design, evaluation assistance, and construction supervision inclusive of all government taxes.

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"Take strong preventive measures to save Shani's life": HRCSL writes to Prisons chief

The petition requesting the release on bail of former CID Director Shani Abeysekara, who is in remand custody, was taken up at the Gampaha High Court today (26). The verdict is scheduled to be announced on December 07, reports say. Meanwhile, the Human Rights Commission of Sri Lanka (HRCSL) has requested the Prisons chief to take strong preventive measures to protect the life of the former CID chief, who was reported to have contracted COVID-19 while in prison.

The HRCSL in a letter to the Commissioner General of Prisons yesterday (25), urged him to ensure that Shani, who is in remand custody at the Mahara prison, be hospitalized immediately if he has contracted COVID-19.

“We urge that strong preventive measures be taken to protect his life which is in your custody. If Mr Abeysekara has contracted the virus, we recommend you ensure that he receives treatment at the nearest hospital treating COVID-19 patients,” the letter from HRCSL stated. The letter was sent to the Commissioner of Prisons Thushara Upuldeniya after the HRCSL received complaints regarding the safety of the former CID chief.

"There is also a high degree of concern that this may pose a threat to Mr. Abeysekera's life. We write to draw your immediate attention to this complaint," HRCSL Commissioner Ramani Muttetuwegama said.

It further requested the Prisons Commission to send them the preventive measures adopted before 30 November.

The Human Rights Commission of Sri Lanka wrote to the Commissioner General of Prisons last week requesting to increase all security measures relating to Remandee Fathima Sadiya, the wife of Zahran Hashim.

HRC Letter

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India to assist Sri Lanka in capacity building & skill development

Indian High Commissioner Gopal Bagley initimated the Indian government's willingness to assist Sri Lanka  in areas such as capacity building and skill development. This was revealed during a meeting between High Commissioner Baglay and the State Minister of State for Skills Development, Vocational Education, Research and Innovation, Dr. Seetha Arambepola, on 15 September 2020.

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COVID-19 hit SMEs to get ADB funding of USD 165 million for survival

Sri Lanka’s COVID-19 battered small and medium-enterprises (SMEs) are to be infused with financial life blood with much needed funding from the Asian Development Bank (ADB), finance ministry sources said.

ADB has approved a USD 165 million loan to Sri Lanka to provide immediate financing support for small and medium-enterprises (SMEs), which have been severely affected by the COVID-19 pandemic.

It will also provide long-term financing to underserved SMEs, including businesses led by women and tea smallholders.

COVID-19 has badly hit Sri Lanka’s economy due to the decline in demand, and supply chain disruption in export-oriented industries, which has led to an economic slowdown that gradually spread across other sectors.

Financial support is critical for SMEs to revive their businesses, which account for over 45% of total employment and 52% of the gross domestic product of Sri Lanka.

The new financing will build on the ongoing Small and Medium-Sized Enterprises Line of Credit Project, which ADB approved in 2016 to strengthen SMEs’ access to finance.

The project is co-financed with a grant from the G20-led Women Entrepreneurs Finance Initiative (We-Fi) since 2018 to promote women entrepreneurship.

“Through the efficient credit delivery mechanism of the ongoing project, we will swiftly provide affordable working capital loans through 10 local banks for severely affected SMEs in response to COVID-19,” said ADB Financial Sector Specialist for South Asia Takuya Hoshino.

“This new loan together with the existing We-Fi grant will further encourage banks to expand their outreach to businesses led by women, to boost long-term economic growth and transformation in the context of a steadily aging population and expected future labor shortage.”

The new loan will introduce a new credit line, cofinanced with a USD 1.25 million grant from the Japan Fund for Poverty Reduction (JFPR), to promote capital investment by tea smallholders.

A supplemental USD 1.75 million technical assistance grant from JFPR will build tea smallholders’ financial literacy and capacity to access financial services and develop policies to promote value chain development for the Sri Lankan tea industry to strengthen its international competitiveness.

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Illegal deforestation continues with the help of politicians

The devastation caused to Sri Lanka's forest cover by stooges connected to powerful provincial politicians of the ruling alliance is continuing unabated amidst slow action of the police and state forest conservation authorities, environmentalists complained.

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Obama refers to Sri Lanka North and East war in his

Former US President Barack Obama has referred to Sri Lanka’s North and East war in his latest book.

Obama's “A Promised Land” topped the USA TODAY Best-Selling Books list by selling more than 1.7 million copies in North America in its first week, roughly equal to the combined first week sales of memoirs by his two immediate predecessors and among the highest ever for a nonfiction book.

The reference on Sri Lanka, though very short, is likely to stir controversy in Sri Lanka and overseas.

In it, he notes that UN member states lacked either the means or the collective will to reconstruct failing states like Somalia, or prevent ethnic slaughter in places like Sri Lanka.

He is referring to the final stages of the war in Sri Lanka during which time he was the President of the UNited States.

At that time, Obama had made a statement in front of the media calling on the LTTE to release trapped civilians and the then government to stop using heavy weapons.

In his book, Obama also says UN peacekeeping missions, dependent on voluntary troop contributions from member states, were consistently understaffed and ill-equipped.

“At times, the General Assembly devolved into a forum for posturing, hypocrisy, and one-sided condemnations of Israel; more than one U.N. agency became embroiled in corruption scandals, while vicious autocracies like Khamenei’s Iran and Assad’s Syria would maneuver to get seats on the U.N. Human Rights Council," he said

However, he also says that despite all its shortcomings, the UN served a vital function.

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20A: 120 SOEs exempted from government audit

Nearly 120 State Owned Enterprises (SOEs) including the debt ridden SriLankan Airlines will be exempt from government audit under the proposed 20th Amendment to the Constitution.

Among other state owned business entities to be excluded are Lanka Electricity Company (LECO), Sri Lanka Insurance, Lanka Hospitals PLC, Litro Gas Lanka Ltd, Lanka Sathosa and Lanka Coal Company Ltd. among many others.

The draft proposal drew strong protest from the Sri Lanka Audit Service Association (SLASA) and opposition parliamentarians.

The 20th Amendment was taken up for discussion at today's (16) cabinet of ministers meeting, government sources said.

On Tuesday (15), a nine-member committee appointed by Prime Minister Mahinda Rajapaksa to study the 20th Amendment handed over its report to the Premier.

Meanwhile, former State Minister of Finance Eran Wickremaratne stressed that the power to audit government finances, funds, and public institutions should remain independent of the executive.

“However, the National Audit Service Commission has been revoked by the proposed 20th Amendment. The independence of the auditor has been stripped completely," he said.

“Under the 20th Amendment, all the power to appoint persons to all the Commissions, including the Auditor General, will be centralised with the President,” Wickramaratne pointed out adding that it is not the character of the person who is in the seat of power that will ensure democracy, justice, and equality, but a robust system with check and balances.

Offices of the President and the Prime Minister exempted!

Opposition MP J.C. Alawathuwala has hit out at the government for exempting the President’s and the Prime Minister’s offices from being audited under the 20th Amendment.

“We wish to ask the President and the Prime Minister what is the objective of doing that? ” the SJB parliamentarian queried.

He pointed out that the Prime Minister had recently said that he was unaware of the provision until the amendment was sent to be gazetted.

He said that the inability of the government to reveal who drafted the 20th amendment is an indication of the type of new constitution that is to be introduced in the future

When State owned companies, in which the government is a majority shareholder, are audited by private entities, the reports are not required to be submitted to Parliament, the union said. This would undermine parliamentary financial oversight.

The 20th Amendment also seeks to abolish the National Audit Service Commission which, the union says, was established to comply with international and global requirements related to independence in public finance and governance. And it does not propose an alternative.

The qualifications required of an Auditor General which were more defined under Article 153(1) of the Constitution have been removed and the method of appointment changed to allow direct nomination, by the President, without the Constitutional Council’s involvement.

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