News

The Treasury has been pushed into a catch-22 situation relating to the 2019 budgetary process following three weeks of political uncertainty without clear direction.

The 2015 history is going to be repeated once again, as the Finance Ministry officials have been compelled to prepare a 3-month vote on account under the present situation of political instability, a senior Treasury official disclosed.

If the political impasse continues further without a settlement for few more weeks, then the Finance Ministry has to consider another option, he said.

A vote on account will have to be presented in Parliament in January 2019 to implement special measures to provide relief to the people, similar to action taken under the 100-day programme of good governance government in 2015, he added.

If this move is defeated in Parliament, the President has powers under the Constitution to sanction payments for public services including salaries of public sector employees and the general election expenditure withdrawing money from the government consolidated fund for three months, the official said.

However under the present volatile political environment, anything is possible, he said emphasising that this is a terrible experience for public servants.

According to Treasury statistics, the Consolidated Fund has been overspent to the tune of around Rs. 250 billion at present.

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 has pushed the country into a financial crisis.

(Sundaytimes.lk)

The spokesperson for the International Monetary Fund (IMF) Gerry Rice has confirmed to the Sunday Morning newspaper that the IMF programme with Sri Lanka has been put on hold due to the current political crisis in the country.

"The programme is currently on hold pending further clarity on the political situation", Rice said.

Sri Lanka's 3 year extended arrangement under the IMF was approved in June 2016, to the amount of USD 1.5 billion at the time of approving the arrangement.

Sri Lanka's IMF funding is conditional upon implementing key economic reforms such as the fuel pricing formula and tax reforms.

There may be consequences for current and future defence and security projects between Sri Lanka and the United States if the Sri Lankan government does not uphold the law and democratic principles, the US Embassy said.

In August, the US State Department announced it would provide $39 million – pending Congressional approval – to the Sri Lankan military.

The funding comes as a part of a broader initiative to strengthen security relationships with south and south-east Asian states. The funding is designed to enhance maritime security, humanitarian assistance and disaster response, peacekeeping capabilities and countering transnational crime capabilities in these countries.

The US also handed over an ex-US Coast Guard cutter to the Sri Lanka Navy in August. Once recommissioned, the 115m vessel would be the largest ship in the Lankan fleet.

“This is obviously a critical time for the country and the United States is paying acute attention to unfolding events,” US Embassy spokesperson David J. McGuire said.

“With regard to ongoing or future projects and funding, we do not want to prejudge how the current political situation may be resolved and it is too soon to speculate on what consequences may come as a result. “There is so much at stake,” he continued. “Sri Lanka has made great gains in terms of security, prosperity, and reconciliation. The US will continue to urge President Sirisena to reconvene parliament immediately to allow the democratically elected representatives of the Sri Lankan people to fulfill their responsibility to affirm who will lead their government.”

Separately, the US Embassy in Colombo said firmly: “President Sirisena’s decision to dissolve the parliament poses a vital threat to Sri Lanka’s democratic institutions.” The US State Department also tweeted deep concern “as a committed partner of Sri Lanka” after parliament was dissolved.

The US has actively engaged with Sri Lanka on security and military collaboration since the end of the civil war in 2009. The US, Japan and Australia have increased their military diplomacy with Sri Lanka.

Along with India, they have all expressed concern regarding Chinese investment into Sri Lankan strategic infrastructure, especially the maritime infrastructure such as Hambantota Port.

The government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe had issued assurances that Sri Lanka would remain neutral.

US foreign policy towards Sri Lanka considerably improved from January 2015, with more direct military-to-military exercises, exchanges and training programs. The US Marine Corps played an instrumental role in the genesis of the Sri Lankan Navy Marine Battalion last year.

The participation of senior US, Japanese and Australian military leadership at key Sri Lankan defence and security seminars during the last two months underscores the importance the countries have placed on ties with Sri Lanka. (Sunday Times)

Except for the heading, this article has not been edited.

As a result of the illegal and unconstitutional coup, led by President Maithripala Sirisena, Sri Lanka’s economy has been placed in great peril. The uncertainty created has triggered an immediate negative impact at a time of tremendous fragility in global financial markets. 
Financial analysts point pout that Foreign investors have rapidly sold out of Sri Lanka's stock market and debt markets. In just weeks of the illegal regime Rs. 28.8 billion (US$ 165 million) was withdrawn by foreign investors as they lost confidence in economic management of the regime.  

As a result of this money going out of the economy there was major depreciation pressure on the Rupee. Whilst previously the Rupee was facing pressure due to international factors that affected all emerging/frontier economies - this time the depreciation is an entirely domestic issue due to the irresponsible actions of the illegal regime.


Furthermore, The illegal regime has tried to defend the rupee by selling down our valuable reserves resulting in a liquidity crunch in the domestic market causing interest rates to shoot up in the last 3 weeks - this will lead to higher borrowing costs for individuals and businesses, hurting investment, economic growth. 

The cavaliar economic management by the illegal regime has also resulted in a sharp increase in Sri Lanka's external borrowing costs as risks of investment in Sri Lanka has increased. This will make it significantly more expensive to refinance the large debt servicing of up to US$ 15 billion that Sri Lanka needs to refinance in the next 3 years. These costs will all be faced by the public.


The range of tax cuts made by the illegal government will severely undermine government revenue, analysts pointed out. It is not clear as to how this illegal administration expects to reduce government expenditure in order to balance the budget after these erratic, irresponsible, and populist tax cuts. 

In the first 6 months of 2018, total revenue was Rs. 925 billion. Expenditure on salaries and wages was Rs. 316 billion, interest payments Rs. 391 billion, welfare Rs. 223 billion. These 3 items alone add up to Rs. 930 billion. Will Mahinda Rajapaksa reduce the size of the public service? Will he cut salaries? Perhaps he will reduce pensions? 

The irresponsible measures since the illegal takeover of government by the former strongman and purported minister of finance and economic policies Rajapaksa have gone against the basic principles of economic management. 

The irresponsible measures since the illegal takeover of government by the former strongman and purported minister of finance and economic policies Rajapaksa have gone against the basic principles of economic management. 

These short-term, cheap, populist measures are an attempt to deceive the public to capture political power and avert impending court cases, whilst putting the country risk of major economic peril.

President Maithripala Sirisena met with leaders of all parties, with the exception of the JVP, for crucial talks in a bid to end the current political crisis today at the Presidential Secretariat.

However, the all-party meeting has ended inconclusively with Sirisena refusing to accept the no-confidence motion that was passed in parliament on Friday.

UNP MP Ajith P. Perera said that they have proposed to the president to show up with 113+ members tomorrow at the Presidential Secretariat with signed affidavits to show that they command the majority in the House.

"We told president Sirisena we have the majority. We are in a position to present the affidavits we signed. We also told him there is no government in the country according to Article 48 (2) of the Constitution", Perera told reporters gathered outside.

Sources added that a closed door meeting is currently underway between president Sirisena, Ranil Wickremesinghe and Mahinda Rajapaksa.

Parliamentarian Mangala Samaraweera said that a group led by Yoshitha Rajapaksa, the second son of Mahinda Rajapaksa, is offering up to USD 3 million to lure United National Party MPs to form a majority of 113 members in the House. The no confidence motion against Mahinda Rajapaksa, that was passed by a majority in parliament for a second time yesterday, amidst chaotic scenes, is yet to be accepted by Sirisena.


Rajapaksas' have failed to muster the majority since the unconstitutional takeover of government on October 26th and is struggling to find MPs to back their illegal government.

It is reported that president Maithripala Sirisena had informed officials to transfer IP Nishantha Silva forthwith to another branch of the Criminal Investigations Department (CID). Silva is a senior officer who has been investigating some atrocious crimes committed during the Mahinda Rajapaksa regime.  

The sources revealed that the president has instructed IGP Pujith Jayasundara to act upon his order. 
It is also reported that this action has been taken based on an agreement between President Maithripala Sirisena and Mahinda Rajapaksa at the time of the initial discussions to form the purported government.

Officer who led many high-profile investigations

IP Silva was the chief officer- in-charge of the investigations related to the murder of journalist Lasantha Wickremathunga, abduction and missing of 11 youths including school students in 2008, abductions and near fatal assaults on journalists Keith Noyahr, Upali Tennakoon and Namal Perera etc.  

Ravi’s arrest thwarted due to Sirisena’s pressure

Recently, Nishantha Silva became the talk of the town after apprehending Chandana Prasad of Sri Lanka Navy, who was the main suspect of the alleged abduction of the aforementioned 11 youths. It was also revealed during investigations that it was the current Chief of Defence Staff (CDS), Admiral Ravi Wijegunaratna, who had shielded him from being arrested by the CID by providing him shelter in a Naval facility.
Although a court order was issued to apprehend Admiral Wijegunaratna, the CID had informed the court later that due to the unwarranted interference of politicians, they could not arrest him.

Moreover, many were baffled to see the suspect (Wijeguneratna) who was ordered by the court to be arrested, take part in a ceremony held at the Ministry of Defence to mark the appointment of Hemasiri Fernando as the new secretary to the Ministry of Defence.

Likewise, the relationship between suspects of these cases roaming freely and the sudden transfer of Nishantha Silva is clearly evident.

Nishantha caught Vidhyas’s killers

According to sources, IP Nishantha Silva is one of the talented investigative officers attached to the CID. He was also the officer in-charge of the much talked about “Punkuduthivi Vidya” murder case. He not only revealed the murderers, but also exposed a top official in the police department who had attempted to stash evidence related to the murder case.

Furthermore, it was Nishantha Silva who spearheaded the operation to nab the criminals in connection with the abduction of a girl in Kurunegala.

Independent Police Commission silent?

The motives behind the president to transfer such a highly talented police officer is evident. He formed a purported government and appointed a Premier who couldn’t show the simple majority in the House. The president is the same person that disregarded two no confidence motions against his unconstitutionally appointed prime minister, that were passed by a majority in the House. This president has now started to hound Police officers. 

What is more important is the fact that the Police cannot dance to the tune of the executive or the IGP anymore. There is an independent police commission that was reinstated to ensure a system of checks and balances. Furthermore, Nishantha Silva is an exemplary officer who hadn’t tarnished his name with a clean track record.

According to the information we have received, the Police Commission has to recommend the transfer of Inspector Nishantha Silva, who also functions as the head of the division related to organised robberies, to another division. But with president Sirisena gazetting the police department under him, it is not surprising to see him transfer officers that have worked on Rajapaksa era criminal and graft related cases without reverting to the police commission.

What we can tell you is that, the day that Sirisena would come to sting you, the citizens, is not far off. When he would come for you is not a matter of ‘if’ but ‘when’.

Sri Lanka Army, continuing the process of releasing non-governmental lands that have been used by the Security Forces in the Wanni region, released land blocks of 56.8 acres in the general area of Mundimurippu jungle area on Wednesday.

These blocks of lands comprised 37.1 acres (one block) and 19.7 acres (separate block) respectovely that were earlier used for security purposes by 20th Sri Lanka Sinha Regiment (SLSR) troops of the Security Forces Headquarters in Wanni.

Major Induka Wickramasinghe, Commanding Officer 20 SLSR on behalf of the Wanni Commander handed over all necessary documents connected to those land patches to Ms R Kethishwaran, District Secretary for Mullaittivu during a meeting at the Mullaittivu District Secretariat.

Lieutenant General Mahesh Senanayake, Commander of the Army in keeping with the government policy of releasing lands belonging to civilians as directed all SFHQs to ensure such lands be handed back as much as possible.

The Janatha Vimukthi Peramuna (JVP) has decided not to attend the all-party conference scheduled for this evening with President Maithripala Sirisena, JVP leader Anura Kumara Dissanayaka said. 

Dissanayake said that the JVP will not attend the conference as there was nothing to discuss with the President. Since Sirisena was responsible for the current political impasse due to his unconstitutional takeover, he should be able to resolve it himself, he added.

Earlier, Speaker Karu Jayasuriya too had declined the invitation sent by president Sirsena to attend an all party conference. Jayasuriya has declined President's invitation to attend the all-party conference this evening since it's a discussion with political party representatives, Speaker's Office said.

The Speaker’s office also added that the Speaker will take the relevant actions in due course based on the decisions reached at the all-party conference once those decisions are informed to him.

The United National Party (UNP) requested Facebook not to disclose information on selected Facebook users that could be sought by the illegal government that was formed in contravention of the constitution of Sri Lanka.

UNP chairman, parliamentarian Kabir Hashim, in a letter addressed to Facebook CEO Mark Zuckerburg today (16), stated that the illegal administration has continued to tighten its control of 'traditional media' and as such, reiterated the importance of social media platforms as it is the only means of communication for civil society, democracy advocates and the public.

Hashim further stated that this illegal government headed by Maithripala Sirisena would possibly inquire from Facebook for information on selected users on geo locations and other identification details of users.

"Mr. Maithripala Sirisena may ask Facebook for information on selected Sri Lankan users that should be rightfully private. It is vital that this information be safeguarded as the current illegal administration will most likely use these in ways which are legally prohibited," he added.

Letter sent to Mark Zuckerberg:

The dangers of a return to power of Mahinda Rajapaksa cannot be overstated. When he was president, torture in Sri Lanka was routine. Tens of thousands of civilians were killed in just a few months at the end of the civil war in 2009, in what his government cynically referred to as a “no-fire zone”. It was, as the UN later noted, a “grave assault on the entire regime of international law”.

President Maithripala Sirisena, his successor, was never the human rights champion he claimed to be, and it was foolish of western governments to buy this lie. Now Sirisena’s political coup to bring the despotic Rajapaksa back into power has jeopardised even modest steps towards reconciliation.

Whatever emerges in the short term from the current political chaos, we face the real possibility that a man who presided over mass torture and enforced disappearances will again hold the reins of power. In the words of one Sri Lankan activist last week: “There is increasing fear.” On no account should the UK send people back to the risk of torture and ill-treatment there, as it has repeatedly done before.

There is probably no person on Earth more responsible than Rajapaksa for the broken lives that Freedom from Torture attempts to fix at our torture treatment centres in the UK. For seven years running, Sri Lanka has been the top country of origin for people referred to us. Last year alone, we provided care to more than 230 Sri Lankans, the vast majority of whom were tortured under Rajapaksa’s rule. Most of those we see are Tamil, but some are Sinhalese or of mixed ethnicity.

Rajapaksa built his torture machinery to last and the truth is that Sirisena has kept it well oiled. Should Rajapaksa return to high office, the merest of nods would suffice for his old operatives, many of whom are still in the system, to crank it up again. Military and police chiefs are reportedly already paying visits to him.

Mahinda Rajapaksa (centre right), Sri Lanka’s former president and newly appointed prime minister, leaving parliament in Colombo amid violent protests. Photograph: Lakruwan Wanniarachchi/AFP/Getty Images

We have previously sounded the alarm about the risks of torture facing Tamils returning to Sri Lanka from the UK since the civil war if they had, or are thought to have had, associations with the militant Tamil Tigers, even at the very lowest levels or via family members or other contacts.

The official antipathy towards the Tamil diaspora was displayed earlier this year by a Sri Lankan defence attaché caught on film making a throat-slitting gesture to Tamil protesters in London. This was not an empty threat.

Our specialist doctors have forensically documented more than 80 cases of people tortured after returning to Sri Lanka from the UK after the conflict, most of whom report being interrogated about their reasons for being in the UK, their activities and their networks. Most returned to Sri Lanka voluntarily, but some were forced back after rejection of asylum claims.

The British government is rightly calling on Sri Lankan politicians to uphold the constitution and human rights, but dispensing advice to Colombo is not enough. The clear and present risk of escalating repression and our specific evidence of torture on return from the UK requires a halt to removals and an urgent review of the Home Office’s asylum policy on Sri Lanka to match our evidence of who is likely to be targeted.

Tamil survivors in treatment always resented pressure from western diplomats to dampen their demands for international justice in the interests of peace. They knew this would mean no justice at all and the risk that those most responsible for atrocities would regroup and plunge the country back into chaos. Sirisena’s pact with Rajapaksa proves them right.

More diplomacy is needed to restore the rule of law and hold Sri Lanka to the deal it struck at the UN to underpin the peace. But a moratorium on removals is a simple step for the UK to take now to ensure that we do not deliver anyone into Rajapaksa’s lethal hands. (The Guardian)

Kumara Welgama, a staunch Rajapaksa loyalist and UPFA MP had said that Mahinda Rajapaksa should leave if he doesn't have the backing of the majority of members of the House. 

"If Mahinda Rajapaksa doesn't have 113 MPs, he should leave, that's my opinion. We can stay in the opposition. This is shameful behaviour," Welgama told the BBC.