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President Maithripala Sirisena has assured Speaker Karu Jayasuriya that he will hold separate discussions with the leaders of the United National Front (UNF) and the leader of the opposition tomorrow evening to arrive at an immediate solution to the current political impasse, the Speaker's media unit said in a statement.

The Speaker met with president Sirisena for a special discussion at the Presidential Secretariat today.

"The Speaker told the President that all spheres of the country have become unstable today. He said the rapid depreciation of rupee and the collapsing of the investment sector and the tourism sector would be unbearable for the country. Therefore, the Speaker said that immediate solutions should be given to the instability to which the President responded positively. The President also commended the Speaker's contribution to find solutions," the statement said.

Sri Lanka’s dilemma on allocating funds for the year 2019 continues even after the endorsement given by the cabinet of ministers newly appointed by President Maithripala Sirisena for the three month Vote on Account this week as it needs parliamentary approval for drawing expenditures from the consolidated fund, official sources said.

According to article 150 of the Constitution, "the Government may withdraw funds from the consolidated fund once parliament passes a resolution or a law, granting a specific sum of money for a specified public service to be spent in a particular financial year."

Once parliamentary approval is granted, the warrant under the signature of the Minister of Finance alone has to be issued, for the withdrawal of the specified amounts to be effected.

Cabinet spokesman Dayasiri Jayasekara of the 'purported' UPFA government said that they will present a Vote on Account in parliament next week and enact it with a majority vote in the legislature.

Without a legitimate settlement for the current political impasse, the Finance Ministry will find it difficult to make payments to cover the salaries of public sector employees, pensions, samurdhi beneficiaries and public welfare programmes for at least the first three months 2019, official sources claimed.    According to Treasury statistics, the consolidated fund has over drawn a massive sum of money to the tune of around LKR 250 billion at present for state expenditure.

No money from state institutions including state owned enterprises is forthcoming to the fund and the treasury cannot resort to borrowings to swell the consolidated fund, he revealed, adding that the sudden dissolution of parliament without passing a Vote on Account would further aggravate the financial crisis in the country.

To make matters worse, the 'purported' Finance Minister Mahinda Rajapaksa's tax reductions introduced recently would cause a massive reduction in state revenue next year as there was no way to present revenue proposals in a three month Vote on Account.

Furthermore, 15 tax revisions will come into effect from January 1 next year, on the directions of the Ministry of Finance, if those amendments are approved in parliament.

Out of those revisions, three such tax measures, namely the Telco levy reduction, VAT threshold increase, and WHT on interest income would result in a loss of LKR 75 billion in revenue, tax experts revealed.  

By removing the 5 percent WHT, the Finance Ministry officials are expecting the interest income to be declared as income tax and subject it to be taxed at 24 percent instead of the 5 percent applicable at present, tax experts added.

According to Finance Ministry statistics, the total state revenue was LKR 925 billon in the first 6 months of this year.

Meanwhile, expenditure on salaries and wages was LKR 316 billion, interest payments at LKR 391 billion, welfare at LKR 223 billion with the total expenditure at LKR 930 billion.

Under this set up, the Finance ministry faces a monumental task ahead to manage the cash flow prudently, he warned.

COLOMBO (Reuters) - Sri Lanka signed two multi-million dollar contracts with Chinese firms for a port upgrade project on Thursday in the middle of a political hiatus that has raised doubts over the legitimacy of the government and the legality of the deals.

The debt-saddled island has long been a target of Beijing’s ambitious Belt and Road infrastructure scheme to connect China with countries cross Asia and beyond, while regional power India has also been vying for deals to counter China’s influence.

But a political crisis triggered by President Maithripala Sirisena’s replacement of Prime Minister Ranil Wickremesinghe with Mahinda Rajapaksa, who was in turn sacked by parliament, has raised doubts over who can legitimately make decisions in the country.

Foreign countries have yet to recognize the new government and Wickremesinghe’s party has said any decisions by Rajapaksa’s cabinet are illegal.

An official at the state-run Sri Lanka Ports Authority told Reuters it signed two contracts with Chinese firms worth over $50 million on Thursday after the deals were approved by Rajapaksa’s disputed cabinet last week.

One of Rajapaksa’s cabinet ministers, speaking on condition of anonymity, also confirmed the deals had been approved by the cabinet, while documents seen by Reuters showed the deals were set to be rubber-stamped at the meeting.

The contracts are a $32 million project to enhance the deep berth capacity of state-run Jaya Container Terminal (JCT) in Colombo with China Harbour Engineering Company, and another one worth $25.7 million for the purchase of three cranes from JCT Shanghai Zhenhua Heavy Industries Co. Ltd for the same project., according to the ports authority official.

Asked about the deals, the former cabinet spokesperson under Wickremesinghe’s government, Rajitha Senaratne, told Reuters:
“We will have to re-examine definitely. They don’t have the legal power to decide.”

The ports authority official said the tenders for the deals had been advertised in state-owned newspapers, as is the norm in Sri Lanka, and that they were sent to a cabinet-appointment procurement panel months ago.

India, which accounts for around 80 percent of Colombo’s trans-shipment business, has raised concerns over increasing Chinese projects in Colombo. 

New Delhi had been pushing Sri Lanka for the award of an estimated $1 billion contract for a second foreign-operated container terminal in Colombo.

But that deal was the subject of an argument between Sirisena and Wickremesinghe just before his ouster, in which Sirisena reportedly said the country couldn’t give any more of its assets to foreigners.

The political instability and economic malaise have raised questions over Sri Lanka’s ability to service large external debt taken to finance reconstruction following the end the civil war in 2009. It owes around $8 billion to China, including state linked firms and banks, official data shows.

The motion to suspend the expenditures of the illegal Prime Minister’s Office was passed in Parliament with a majority of 123 votes. The 'purported' government's MPs were absent during the vote as they are clearly unable to muster a majority in Parliament.

The motion to suspend was presented to the Parliament by parliamentarian Ravi Karunanayake this morning and was seconded by parliamentarian Navin Dissanayake.

The motion states that the Secretary to the Prime Minister has no authority to approve any expenditure drawn from the funds of the Republic.

The motion further reads: “Whereas this House on 16th November, 2018, accepted the official statement made by the Hon. Speaker on 15th November, 2018 that, in terms of paragraph 2 of the No Confidence Motion against the Government adopted on 14th November 2018, the Cabinet of Ministers stood dissolved in terms of Article 48 of the Constitution, and accordingly this House further resolved that, since 26th October, 2018, as contemplated in Article 48 of the Constitution, this House had no confidence in the Government including Hon. Mahinda Rajapaksa.”

“And whereas Parliament has full control over Public Finance as mandated in Article 148 of the Constitution.”

“Accordingly, that this Parliament resolves that from 15th November, 2018 the Secretary to the Prime Minister has no authority to approve any expenditure drawn from the funds of the Republic, and any person taking any action in violation of this Resolution will be dealt with according to law.”

MPs of the United National Front (UNF), Tamil National Alliance (TNA) and the Janatha Vimukthi Peramuna (JVP) voted in favour of the motion.

Colombo Additional Magistrate Isuru Neththikumara ordered the Criminal Investigations Department (CID) to arrest the suspects that can be charged over the murder of former Sri Lankan rugby captain Wasim Thajudeen.

The CID informed the Magistrate today (29) that it is possible to present charges against the former Senior DIG of Western Province Anura Senanayake, OIC of the Crimes Division of the Narahenpita Police Sumith Perera and former Judicial Medical Officer (JMO) of Colombo Dr Ananda Samarasekara, who are named as suspects, in connection with concealing evidence and falsifying documents pertaining to the murder of Thajudeen. 

The case was postponed to February 28, 2019 as the CID requested for another date in order to seek the advice of the Attorney General.

Parliamentarian Wijeyadasa Rajapaksha, who was appointed as Minister of Education and Higher Education by president Sirisena, requested Speaker Karu Jayasuriya to resolve the prevailing political crisis through discussions with the President.

Rajapaksha made these remarks while delivering a special statement in Parliament today.

He urged the Speaker discuss the issue with the President and to restore normalcy by establishing a government which commands the majority in Parliament.

Rajapaksha addressed the House today, despite a decision taken by MPs representing the government to boycott parliamentary proceedings for a third day today (29).

He also requested the Speaker to allow any group which is able show a majority in Parliament in a democratic manner to form a government and move forward.

 14 MPs representing the Tamil National Alliance (TNA) wrote to president Maithripala Sirisena today informing him that they will support the restoration of a government headed by the United National Front (UNF) as it existed prior to October 26th. 

"The view of the majority of the Hon. Members of Parliament on the issue of whether the said Hon. Member (Mahinda Rajapaksa), commands the Confidence of Parliament to be the Prime Minister has been negative and has been demonstrated beyond doubt," the TNA said.

"We the Members of Illankai Thamil Arasu Kadchi, will support the restoration of a Government headed by the U.N.F. who in the opinion of Your Excellency is able to command the confidence of Parliament as Prime Minister," the TNA added.

Multinational companies have raised fears of Sri Lanka losing the EU's GSP plus trade concessions due to the current political crisis.

In a statement today, the Free Trade Zone Manufacturers’ Association (FTZMA) Executive Committee, which employs around 45,000 workers with more than 50 organizations, said that the negative image being portrayed in Western countries, including some of Sri Lanka’s largest export markets, has drawn concern from both domestic and international customers.

“Since the crisis started on the 26th of October, we have had many concerned inquiries from our customers and other stakeholders both local and international regarding the present political situation in the country. The image portrayed especially in the west has been extremely negative both in the print as well as digital media. Being one of the oldest democracies in the world this has been debilitating and shameful especially some of the recent incidents that took place in Parliament”, the FTZMA said.

This has had implications for most of the future order books of our members as well as the potential of losing GSP+ for exports to the EU,” FTZMA added.

They also said that upholding the Constitution and adhering to democratic processes and institutions are vital factors that would help to grow their businesses.

“Upholding the Constitution, Law & Order, Consistent policy making, and political & economic stability are key to growing our businesses and attracting further FDI (Foreign Direct Investment). We are extremely disturbed and disappointed with the behaviour of all political parties concerned in not reaching a consensus to this political flux.  It is important and urgent that all political leaders at loggerhead put the country first rather than their personal agendas,” FTZMA said.

The FTZMA also warned that failing to resolve the current political impasse would have grave concerns as Sri Lanka would become non-competitive and undesirable in the eyes of investors.

The Sri Lanka Working Journalists Association (SLWJA) has condemned the attack on reporters by a security officer attached to Chief of Defence Staff, Admiral Ravindra Wijegunaratne, in front of Fort Magistrate Courts yesterday (28).

Video evidence showed that three journalists were clearly attacked and obstructed from carrying out their duties.

"Journalists Gayan Amarasekera of Lankadeepa, Indika Handuwela of Derana Aruna and Malith Gamage of Lakbima were disturbed and attacked by a naval officer in civil clothes who identified himself as a security officer of Admiral Wijeguneratne," the SLWJA said today.

Wijegunaratne was remanded yesterday for harbouring the chief suspect responsible for the abduction and murder of 11 youths.

The SLWJA requested president Sirisena to hold a full-scale investigation into the incident as the commander-in-chief of the armed forces. They also urged the president to ensure media freedom and the safety of journalists.

Constitutional expert Jayamapathi Wickramartne PC said today that the President Maithripala Sirisena's arbitrary action of not appointing the Member of Parliament, who commands the support of the majority of Members, is a flagrant and an intentional violation of the Constitution. 

The appointment of the Prime Minister is now governed by Article  42 (4) which states: “The President shall appoint as Prime Minister the Member of Parliament, who, in the President’s opinion, is most likely to command the confidence of Parliament".

More than 113 MPs have already submitted signed affidavits expressing their support to ousted Premier Ranil Wickremesinghe.

Wickramaratne further said that this is an impeachable offence and it violates the fundamental rights of citizens.

Transparency International Sri Lanka (TISL) yesterday provided a detailed statement to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), pursuant to a complaint filed by TISL on 5 November, relating to allegations of attempts to bribe MPs. 

In the statement provided, TISL officials highlighted to CIABOC investigators that the contents of telephone conversation recordings shared with the media recently by Palitha Range Bandara MP, clearly indicate an offence under Section 14 of the Bribery Act. 

TISL Executive Director Asoka Obeyesekere said: “There are three key points to flag from the recorded conversations. One is the offer of 500 million rupees (50 crores) to crossover. Secondly, the offer to pay the amount in US dollars and thirdly, the willingness to carry out the transaction in Anamaduwa.” 

The offence of bribing a member of parliament carries a prescribed prison term of up to seven years under the provisions of the Bribery Act.

CIABOC officials confirmed to TISL today that an investigation has been initiated into the complaint and that statements would be obtained from the relevant parties. “We hope that upon the conclusion of this investigation, those who sought to bribe MPs will be held to account and that anybody attempting to do so in the future is mindful of the consequences,” Obeyesekere added.

A group of women activists held a protest outside the Presidential Secretariat demanding an end to the crisis that was started by president Sirisena. 

" Mr. Maithripala Sirisena, we are asking you, in the name of the children of this country, please do not drag us into this darkness. The chaos around us has risen out of an utterly anti-democratic decision taken by you. It is therefore you who have to reinstate this country within its constitution and set it back on its democratic principles. It is completely within your executive powers to do this. And it is your responsibility", they said. 

A letter was later handed over to the presidential secretariat to be given to president Sirisena.

Following is the full text of the letter:

Mr. President,

A single arbitrary and unilateral decision taken by you, on the 26th of October, set in motion a sequence of events that now has thrown an entire country and all of its people into an abyss of confusion and chaos. Since that day, the economy of our country has almost collapsed. Since that day the political culture of our country has deteriorated to a level of national disgrace and an international spectacle. If this is not stopped and reversed, it is very likely we will soon have our state institutions and the country descend into utter chaos. You are aware that a number of foreign countries have warned economic sanctions if this crisis is not democratically and swiftly resolved. To date, a number of international organizations have stopped the flow of aid to our country. Our country is now heavily dependent on foreign aid and loans, so economic sanctions alone will cripple Sri Lanka and its citizens.

Mr. Maithripala Sirisena, we are asking you, in the name of the children of this country, please do not drag us into this darkness. The chaos around us has risen out of an utterly anti-democratic decision taken by you. It is therefore you who have to reinstate this country within its constitution and set it back on its democratic principles. It is completely within your executive powers to do this. And it is your responsibility.

Mr. President, we and our children have only this country to live in. If this country is dragged into an economic and political abyss, it is we citizens who have to suffer the consequences. We have not amassed wealth and resources for ourselves in the manner that our politicians have. This economic crisis does not hit the Ranil Wickremesinghes or the Mahinda Rajapaksas or even the Maithripala Sirisenas of this country, Mr. President, it hits us.

Leaders of this country need to be elected in accordance with the constitution of this country. Thus without marring the truth by bringing in personal likes, dislikes or conflicts; we demand that you provide our citizens and our country with a stable and responsible political solution in keeping with our principles of governance. We do not accept that a seasoned politician like you does not see that a country that subscribes to the principle of parliamentary democracy cannot function under a Government that has not secured a majority vote in parliament. Damaging the principle of parliamentary democracy is a very dangerous precedent; it could very possibly lead to the utter collapse of governance in this country as we know it. Please, in all of this madness, take a moment to think of the innocent children who will have to grow up in this country that you have begun to create.

It is such a tragedy and disgrace that the very basic precepts of Lord Buddha’s teachings – a clear conscience, principled behavior, not lying, honouring one’s word, delivering on promises – have been so completely shamed and ruined by politicians who frequent temples and visit our Mahanayakas twice a week for blessings. This culture of deceit and hypocrisy cannot be allowed to be brought into the constitution.
Mr. President, it is already very late. We demand that you do your job and stop this country from sliding further into darkness. What lies before you is your responsibility by a country and by the children of this nation.