News

Ministers and parliamentarians of the United National Party (UNP) have decided to stop all personal meetings with former Defence Secretary, Gotabhaya Rajapaksa.

Gotabhaya is all set to be named as the presidential candidate of the Rajapaksa led Sri Lanka Podujana Peramuna (SLPP).

The decision to stop all personal meetings with Gotabhaya was compelled by the fact that he is to become a presidential candidate of the opposition and the growing concerns over reports of meetings that have taken place between senior UNP ministers and Gotabhaya, a senior UNP member told The Leader.

The issue of UNP ministers meeting with Gotabhaya came to light when UNP Chairman, Minister Kabir Hashim who visited Gotabhaya at his residence in Nugegoda to inquire after his health since had returned to the country after surgery, walked in on Minister Sagala Ratnayake having a secret meeting with the "Pohottuwa" presidential hopeful.

It is learnt that several UNP MPs had raised concerns over Ratnayake, whom they claim has had several secret meetings with Rajapaksa.

Ratnayake however, has said that he had visited Gotabhaya to inquire into his well being.

State Minister of Defence Ruwan Wijewardena says there’s a certain amount of instability since five defence secretaries were appointed from 2015 to date and that the State Ministry of Defence and the Ministry of Defence generally function as two separate entities.

Testifying before the Parliamentary Select Committee (PSC) probing Easter Sunday attacks yesterday (6), Wijewardena has stated that he felt the intelligence service had their own autonomy, rather than working together.

The State Minister has noted that the Security Council meetings in 2017 had discussed the clashes between two mosques in Kattankudy as a result of extremist activities in the area, but possible terror attacks were not subjected to discussion.

He has further noted that he had noted received forewarnings prior to the Easter Sunday attacks and that he had gotten to know of the forewarnings received by the intelligence units only after the attacks.

He has further explained that he was called to the Security Council meetings before the 51-day Constitutional crisis took place last year and following the crisis, the President and the Prime Minister were not on good terms.

“I believe that is why we were not summoned to the meetings afterwards,” Wijewardena has noted.

The State Minister has admitted that the intelligence coordination meetings and Security Council meetings had discussed the clashes between two factions in Kattankudy and those who left for Syria and returned to the country but not the terrorist attacks or the formation of terrorist groups.

Sri Lanka’s trade with Asia’s fastest growing economy is set to surge when both countries meet for Ministerial trade talks later this year -after almost three years, the Ministry of Industry and Commerce said.

The Bangladesh Joint Committee for Economic & Technical Co-operation (SL-BJCETC) at Ministerial Level was last held in Colombo on 9th November 2016.

During the 2016 SL-BJCETC session, ideas were exchanged between the two countries on the proposed Bangladesh-Sri Lanka Bilateral Free Trade Agreement.

Also, the draft Bilateral Investment Promotion & Protection Agreement (BIPPA), cooperation between the Investment Authorities in Bangladesh (BIDA) and Sri Lanka (BOI), and the draft MoU on standards between BSTI and SLSI were discussed –they later became a reality when MoUs were signed in 2017.

The proposed bilateral FTA aims at boosting total trade to higher levels beyond current $150 Mn levels. According to the Department of Commerce, bilateral trade between both countries in 2018 (Jan-Nov) totalled $156.15 Mn in comparison to $166 Mn for all twelve months of 2017.

The balance of trade has been in favour of Sri Lanka over the years. Exports to Bangladesh were at $124 Mn (2018 Jan-Nov) growing by 34% in the five years since 2014. Sri Lanka’s main exports to Bangladesh in 2018 were plastics, cotton, knitted fabrics, soaps and fuel oil.

Even total trade has increased by 34% in the last five years–from $ 116 Mn in 2014 to $156.15 Mn in 2018 (Jan-Nov).
In July 2017, after a bilateral meeting between HE President Maithripala Sirisena and Hon Bangladeshi Prime Minister Sheikh Hasina in Dhaka, both countries signed 14 instruments some of them the result of 2016 Colombo session.

Sri Lanka and Bangladesh are members of regional trade and co-operation agreements, including the South Asian Free-Trade Area (SAFTA), the Asia Pacific Trade Agreement and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Co-operation.

The Excise department has conducted 24,150 raids throughout the country during the first six months of this year under its programme to minimize life risks through the elimination of illicit liquor.

These raids have been carried out under the charges of brewing illicit liquor, possession of such liquor, possession of illegally distilled spirits, possession of distillery equipment, sale of illicit liquor and illegal sale of foreign liquor, Excise Commissioner General H.G. Sumanasinghe said.

In 2018, the Excise Department had carried out 49,312 raids. A revenue of LKR 253 million was generated through fines and the monies have been credited to the relevant Provincial Councils.

The Excise revenue in 2014 was recorded at LKR 69 billion and in 2019, the department has set a target of LKR 130 billion. However, the Excise department has already collected LKR 68 billion at the end of July this year, official statistics from the department showed.

11 dead in Mirigama

It was reported that 11 persons had died after consuming illicit alcohol from a local tavern in Banduragoda, Mirigama last Thursday (07). After consuming locally made toxic alcohol, many people have been admitted to hospitals since they had sustained similar symptoms including vomiting, diarrhoea and loss of eyesight.

Police said parts of body organs of deceased persons have been sent to the Government Analyst for further investigations. The suspect who brew the illicit liquor has been taken into custody by police.

More branches island wide

The Excise Department, under the instructions of Finance Minister Mangala Samaraweera has beefed up efforts to eradicate the illicit alcohol trade. As such, more than 1200 officers have been deployed at 56 branch offices throughout the island.

The Department has also established five special operation units which are empowered to carry out raids in any part of the country to control the illicit liquor trade as well narcotics.

The officers attached to these special units have the authority to conduct special operations in any part of the island and their main task is to subjugate illegal liquor rackets, a senior official said.

The Attorney General’s Department has served indictment before the Colombo High Court on former Colombo Chief Judicial Medical Officer (JMO) Dr. Ananda Samarasekara over the murder case of former Sri Lanka national rugby player, Wasim Thajudeen.

The Dr. Samarasekara has been indicted for allegedly concealing evidence in Thajudeen’s murder case.

Dr. Samarasekara was the former Chief JMO in Colombo and performed the first post-mortem examination on Thajudeen’s charred body found in 2012.

However, when the second autopsy was carried out in 2015 after exhuming Thajudeen’s body, the chest plate, trachea (windpipe) and two long bones which had symmetrical fractures were reportedly missing.

In 2017 The CID had informed court that evidence suggested that the former JMO had acted to destroy and conceal vital evidence in Thajudeen’s murder case.

The failure of the Sri Lanka Army to cooperate with the Criminal Investigations Department (CID) on several key investigations has resulted in the stalling of these probes.

Accordingly, the Sri Lanka Army has allegedly failed to provide the required information to take the investigations forward.

Sources in the police say that the CID is unable to obtain the necessary information from the Army to complete the investigations and therefore facing difficulties in proceeding forward.

The probes that have been affected include the murder of former the Editor of The Sunday Leader Lasantha Wickrematunge, the disappearance of journalist Prageeth Ekneligoda, and assaults on journalist Keith Noyahr and former Editor of Rivira Upali Tennakoon.

All these investigations are still being carried out and could be concluded immediately if the Army provides the necessary details.

The investigation into Wickrematunge’s murder was launched in 2009, while the investigations into the Ekneligoda’s disappearance and assaults on Noyahr and Tennakoon had been launched in 2010, 2008, and 2009, respectively.

Meanwhile, Army Spokesman Brigadier Sumith Atapattu has denied the allegations levelled against the Army and said the Army had so far provided all information requested by the CID regarding the investigations.

Former Navy Commander, Admiral Wasantha Karannagoda and former Air Force Chief, Air Chief Marshal Roshan Goonetileke are now on par with Field Marshal, MP Sarath Fonseka following the awarding of the highest honorary ranks in the armed forces by President Maithripala Sirisena.

President Sirisena has awarded the rank of Admiral of the Fleet to Admiral Wasantha Karannagoda former Commander of the Sri Lanka Navy (2005 –2009) and the honorary rank of Marshal of the Air Force to Air Chief Marshal Roshan Goonetileke former Commander of the Sri Lanka Air Force (2006 – 2011).

The announcement was made through the extraordinary gazette notification issued yesterday (6).

The honorary ranks were awarded in appreciation of the outstanding gallantry, meritorious performance and distinguished service to the nation during the humanitarian operation and the defeat of terrorism in Sri Lanka.

Sri Lanka’s Strategic Defence Communication Network (SDCN) is to be further strengthened and restructured to prevent the re-occurrence of terror attacks similar to Easter Sunday suicide attacks.

The Ministry of Defense (MOD) has taken measures to restructure and streamline the entire system in order to strengthen the intelligence apparatus and national security.

The SDCN is being maintained with aim of providing continued and secured alternative communication network similar to the modern communication system that exists between the tri forces, informed sources said.

The network consists of 37 microwave links connecting 22 terminal points countrywide and was initially planned to be completed planned to complete under the mid-term expenditure framework implemented during the period from 2014 to 2016, a government audit query revealed.

However, the term of the project had been extended beyond the year 2018. Further, the initial estimated cost of LKR 1,192 million had been revised as LKR 1,854 million without obtaining the approval from relevant parties, audit query observed.

It was observed that 22 electricity generators including generators procured and installed at a cost of LKR 15.70 million in 2016 and other 12 generators procured at a cost of LKR 10.80 million in 2017 had remained idle at the premises without being utilized for intended purposes and expiring the guarantee periods.

This matter of official negligence is now being probed and remedial measures will be taken to formulate strict guidelines in the procurement process and maintenance of communication equipment.

The draft bill that was submitted to amend the Sri Lanka Electricity Act has been withdrawn.

Leader of the House, Minister Lakshman Kiriella informed Parliament that the Attorney General has informed that the Electricity Amendment draft bill is contrary to the constitution.

Proposed amendments to the Electricity Act 2009 are being pushed back by the stakeholders with the Sectoral Oversight Committee on Energy objecting to the changes.

The amendments to the Act affect the deposits charged by the licensee to connect to the grid, approvals given by the Public Utilities Commission, and feed-in tariff rates paid to non-conventional renewable energy resources.

Member of the Committee Prof. Ashu Marasinghe said they have objected to some of the clauses.

The amendments come following the approval given by Cabinet to change the Electricity Act to facilitate rooftop solar, which was being held back as the existing legislation requires competitive bidding for every case.

However, the proposed amendments will also affect other aspects of the Electricity Act, including powers vested with the Public Utilities Commission (PUCSL) which have been opposed by the Sectoral Oversight Committee as well as other stakeholders.

During Sectoral Oversight Committee meetings held this week, members had opposed the amendments, with Non-Cabinet Minister Harsha De Silva making strong objections to removing powers of PUCSL to approve power purchase agreements signed for emergency purchases and government-to-government contracts.

Sri Lanka’s Information Technology (IT) sector, a vibrant dynamic industry is now poised for unprecedented progress by making use of capital raising opportunities being provided through public listing at the Colombo Stock Exchange (CSE).

A sum of LKR 3 billion that has been granted by the Finance Ministry to the IT sector over the course of the next three years augurs well for national ICT development.

These funds will be allocated by way of grants, equity investments, credit facilities, mentoring, and technical support with the end goal of developing local startups and attract foreign investors.

A further allocation of LKR 300 million has been made to implement various activities to promote ICT development through the Export Development Board (EDB).

The Chairman of the Federation of Information Technology Industry of Sri Lanka (FITIS), Abbas Kamrudeen noted that equity-based funding will offer IT companies opportunities to pursue growth and realize value.

The CEO of the Colombo Stock Exchange, Rajeeva Bandaranaike pointed out that with the launch of the Empower Board, CSE now has the capacity to cater to both large and SME type equity placements.

He went on to note that a listing on the CSE is a hallmark of prestige and a strong appetite for new equity listings among both local and international investors indicate strong fund-raising potential for companies.

As per the data derived from SLASSCOM (Sri Lanka Association of Software and Service Companies), the industry consists of approximately 130 registered companies, composed of a range of large, medium and small enterprises while the landscape overall has exceeded 300 ICT companies.

Sri Lanka's IT industry's goal is to achieve USD 5 billion in exports by 2022 while creating 200,000 jobs and uplifting 1,000 tech start-ups.

Sri Lankan ICT companies exporting software products and services to regions such as North America, EU, Australia, East Asia, Middle East, Africa and Nordic region.

Their core competencies include automated application testing, infrastructure outsourcing, high-end R & D, Enterprise Resource Planning (ERP), Cloud Technology, Mobile Applications and many other Business Solutions.

Sri Lanka also acts as an offshore development centre for several fortune 500 companies from USA, Ireland, UK, Australasia, Sweden and joint venture development companies from Sweden, Norway, USA, Japan, etc

The State Intelligence Service (SIS) during the period of November 2015 and February 2018 had given 13 intelligence reports on the Islamic State (IS) organization to then Law and Order Minister Sagala Ratnayake including reports on the National Thowheed Jamaath (NTJ).

This fact was revealed when Ratnayake testified before the Parliamentary Select Committee (PSC) probing the Easter Sunday attacks yesterday (6).

Ratnayake has told the Committee that he had received 13 intelligence reports on the IS organization including one on the NTJ, which was responsible for the Easter Sunday attacks.

He has further stated that the then Defence Secretary had also provided him with a report based on a question raised by him regarding the organisation.

However, Ratnayake has refused to submit the SIS’s information received by him to the PSC saying it could impede their activities. The Minister has instead read out some excerpts and the titles of the content.

He has explained that one of the reports was regarding Indian nationals suspected to be linked to IS staying in Sri Lanka while some information was not related to Sri Lanka.

According to Ratnayake, one of the reports was titled “National Thowheed Jama'ath making declarations accepting ISIS ideology” and was received by him on 11-02-2016. The report had contained information about the NTJ posting on websites that the ideology of ISIS is correct.

“This is the first report I received that contained the name of Zahran,” Ratnayake has said. The NTJ leader is suspected of masterminding the April 21 attacks.

Ratnayake has further stated that he had also received a “concept paper on countering potential threats of ISIS” on August 16, 2016 signed by the then Defence Secretary Karusena Hettiarachchi.

He has further stated that he held a meeting with the Defence Secretary and other heads of security as well as intelligence chiefs on the matter.

“I said the ISIS terrorist threat is everywhere in the world now and that we have to have some preparation regarding that,” he has stated.

Ratnayake has added that in February 2017 a special unit within the Terrorism Investigations Division (TID) was formed to deal with religious extremism in the country and this unit was instructed to look into Zahran.
Ratnayake has also noted that intelligence sharing is very as this process was supposed to initiate intelligence sharing within the country.

“I think intelligence sharing with the international intelligence agencies has gone very well. Because you see the results of that. But I am not sure what happened locally. That I don’t know,” he has said, adding that he had left office in February 2018.
“Because they didn’t report to me I can’t verify how much intelligence sharing took place, but certainly that was the idea,” he has added.

Ratnayake has said the idea was on paper, but he cannot say whether it actually happened on ground.

Referring to the intelligence organization, SIS, Ratnayake has said it had a good reporting structure, adding that although the SIS was a branch of the police it reported to the Defence Ministry.

The special interest rate of 15% offered by the Government for senior citizens have not been changed despite the Central Bank reducing deposit rates in commercial banks, the Finance Ministry said today.

"There is no truth in the media reports published by different media saying that the 15% special bank interest rate which has been granted by the Government for senior citizens has been reduced," the statement read.

The special interest rate of 15% granted for the fixed deposits maintained by senior citizens was introduced though Budget 2015 and, it has been continuing with effect from 13.03.2015 without any changes, the Ministry said.

Withholding tax threshold increased!

However, Finance Minister Mangala Samaraweera had extended the tax exemption granted to senior citizens by a further LKR 500,000 taking the tax free interest income threshold to LKR 1.5 million.

The treasury has provided nearly LKR 16 billion annually to commercial banks to provide for the increased interest rate, the Finance Ministry noted.