News

The United States will support restructuring Sri Lanka’s debt, says the US Treasury Secretary Janet Yellen.

Taking to twitter, the President’s Media Division said the US will extend financing assurances consistent with Paris Club principles and engage with the World Bank, Asian Development Bank and US agencies to support the island nation’s debt restructuring.

The US will support restructuring Sri Lanka's debt; extend financing assurances consistent with Paris Club principles & engage with @WorldBank, @ADB_HQ & US agencies - US Treasury Secretary @SecYellen.#PMD #ClubdeParis

— PMD (@PMDNewsGov) September 7, 2022

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’s new Government should embark on a national dialogue to advance human rights and reconciliation, a UN report urges today, calling for accountability and deeper institutional reforms to prevent a recurrence of past violations.

The report acknowledges that Sri Lanka is at critical juncture in its political life, and is in the midst of a serious economic crisis which has severely impacted the human rights of all communities and people of all walks of life. This has spurred broad-based demands by Sri Lankans from all communities for deeper reforms and accountability, and gives the Government a fresh opportunity to steer the country on a new path.

For sustainable improvements to take place, however, it is vital to recognise and address the underlying factors which have contributed to the economic crisis, including embedded impunity for past and present human rights violations, economic crimes and endemic corruption.

“Fundamental changes will be required to address the current challenges and to avoid repetition of the human rights violations of the past,” says the report of the High Commissioner for Human Rights.

The report calls on the Government to immediately end the reliance on draconian security laws and crackdowns on peaceful protest, reverse the drift towards militarisation and show renewed commitment to, and deliver on, security sector reform and ending impunity.

While the security forces recently showed considerable restraint in response to mass protests, the Government has since taken a harder line approach, arresting some student leaders under the Prevention of Terrorism Act and violently suppressing peaceful protests. A heavily militarised environment and culture of surveillance also continues in the north and east of the country.

The report urges the new Government to re-launch a comprehensive and victim-centred strategy on transitional justice and accountability, with a time-bound plan to implement outstanding commitments, including taking steps in relation to the establishment of a credible truth-seeking mechanism and an ad hoc special court. Victims must be given a central role in the design and implementation of all accountability and transitional justice mechanisms.

Expressing concern about the lack of progress to establish the truth about the Easter Sunday bombings in 2019, the report also calls for a follow-up independent and transparent investigation, with international assistance and the full participation of victims and their representatives, to pursue further lines of inquiry.

“The Sri Lankan State, including through successive governments, has consistently failed to pursue an effective transitional justice process to hold perpetrators of gross human rights violations and abuses accountable and uphold victims’ rights to truth, justice and reparations,” the report states.

“Rather, they have created political obstacles to accountability, and actively promoted and incorporated some military officials credibly implicated in alleged war crimes into the highest levels of government.”

In the absence of progress towards accountability at the national level, the report urges other States to cooperate in accountability efforts, including by using available avenues of extraterritorial and universal jurisdiction, to investigate and prosecute crimes under international law committed in Sri Lanka.

Additionally, the report urges States to explore further measures targeting those who are credibly alleged to have been responsible for gross violations and abuses of international human rights law or serious violations of international humanitarian law.

The report outlines the progress of the OHCHR work on accountability, pursuant to Council resolution 46/1, and calls for reinforcement of its capacity.

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.

Certain clauses in the draft 22nd Amendment to the Constitution are inconsistent with the Constitution, the Supreme Court has determined.

Speaker Mahinda Yapa Abeywardena today (06) announced to the House the court decision that was intimated to him.

The draft constitutional amendment should be passed by a special majority and at referendum or else the clauses in question should be amended, the SC has determined.

Govt. will proceed to enact 22A - Justice Minister

Meanwhile, Minister of Justice, Prisons Affairs and Constitutional Reforms Wijeyadasa Rajapakshe said the government will proceed to enact the 22nd Amendment to the Constitution avoiding a referendum.

However, the enactment of the constitutional amendment will adhere to the proposed variations in the determination by the Supreme Court, the Justice Minister added.

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.

The Public Utilities Commission of Sri Lanka (PUCSL) has approved 01-hour power cuts until 9 September.

Chairman Janaka Ratnayake said Groups A to L and P to W will experience the power cut between 06.00 pm to 09.00 pm.

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.

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.