Sri Lanka to call investors for Jaffna airport PPP

Sri Lanka will call expressions of interest to operate Jaffna International Airport as a public private partnership, Shipping and Aviation Minister Nimal Siripala de Silva said.

Prepatory work was underway and the EOI will be called soon, he said.

Jaffna airport in Palaly was designated an international airport and is currently seeing scheduled flights from India through smaller turboprop aircraft.

The airport needs a runway extension to land jets at least in the Airbus A320 class.

Sri Lanka is close to awarding the management of Mattala Rajapaksa International Airport to a consortium of Russian and Indian companies, Minister de Silva said.

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Maldives enters into deals with China and Sri Lanka to counter India By P.K.Balachandran

Alienated from India, the Mohamed Muizzu government in the Maldives has entered into deals with China and Sri Lanka to counter India’s bid to influence its policies.

For one, the Maldives is trying to attract Chinese tourists to fill the gap created by the loss of Indian tourists due to calls in India for the boycott of the Maldives for its anti-Indian and pro-Chinese stance.

For another, the Maldives and Sri Lanka have entered into an agreement for providing emergency medical evacuation in place of a service so far provided by an Indian military aviation team.

The fifth meeting of the Joint Sino-Maldivian Mechanism was held in Male on Thursday to enhance the safety of Chinese tourists in the Maldives, the Ministry of Foreign Affairs said.

The meeting was co-chaired by Minister of State for Foreign Affairs Sheryna Abdul Samad and the Chinese Ambassador to the Maldives Wang Lixin.

The meeting was convened as a continuation of the Memorandum of Understanding signed between the two nations during President Xi Jinping’s visit to the Maldives in September 2014.

The primary focus of the meeting was to address the safety concerns of Chinese tourists visiting the Maldives. State Minister Sheryna, in her opening remarks, expressed satisfaction over the resurgence of Chinese tourist arrivals in the aftermath of the Covid-19 pandemic. She noted that China has ascended to the position of the third-largest tourism market for the Maldives.

She expressed optimism about a significant demographic shift in the Maldives’ tourist population with the commencement of direct flights from China, forecasting a substantial increase in arrivals.

Ambassador Wang expressed her gratitude to the Maldivian government for its coordination and cooperation in ensuring a safe environment for Chinese tourists in the Maldives.

This development aligns with the government’s ambitious plans to reinstate China as the top source market for tourism this year. Prior to the pandemic, China was recognised as the Maldives’ largest tourism market.

Despite currently ranking third, concerted efforts are underway to attract more Chinese travellers, with a positive growth trajectory anticipated.

As part of this effort, Hong Kong Airlines resumed direct flights to the Maldives two weeks ago. In addition to Hong Kong Airlines, three other Chinese airlines—Szechuan Air, China Eastern, and Beijing Capital Airlines—also operate flights to the Maldives, the website www.maldivesrepublic.mv reported.

In 2023, China was the third-top source market for the Maldives, with 187,118 Chinese tourists contributing 10% of the market share.

In 2023, India was first, accounting for over 200,000 arrivals. But in January 2024, India was fifth in the ranking due to the informal boycott call in India following some anti-Indian remarks made by three junior Maldivian ministers.

Maldives-Sri Lanka Pact

Meanwhile, the Maldives and Sri Lanka agreed to establish a framework for medical evacuation flights to replace the service thus far rendered by an Indian military team operating two helicopters and a Dornier aircraft.

The Muizzu government had asked India to withdraw the military personnel and the aircraft as it did not want foreign military boots on its soil. The government had given March 15 as the deadline, but the Indian government said that the issue would be sorted out by a joint core committee.

The agreement with Sri Lanka is that the evacuation flights will be between Malé and Colombo, The Sri Lankan Minister of Aviation Nimal Sripala de Silva announced that the air ambulance service would start on March 1, but the Maldivian Minister Mohamed Ameen would not commit himself to any date.

Minister de Silva also highlighted that the Maldivian government has decided to redirect patients requiring emergency medical care to Sri Lankan hospitals in the future in view of the superior quality of emergency care in Sri Lanka.

The Male-Colombo agreement marks a departure from the Maldives’ previous practice of sending patients to India for emergency medical care.

The Maldivian government intends to repurpose the De Havilland Canada DHC-8, commonly known as the Dash 8, a turboprop-powered aircraft operated by the national carrier, Maldivian, to provide air ambulance services.

Earlier this week, the government also announced plans to recommence Maldivian helicopter services for medical evacuation purposes.

During previous administrations, inter-island medical evacuations were conducted using two Indian navy helicopters and a Dornier aircraft provided by the India. But the administration under Mohamed Muizzu has discontinued the use of aircraft provided by India and requested that the Indian government withdraw its military presence in the Maldives.

Indian Reaction

India has reacted to the anti-Indian Maldivian moves by promoting, among Indians, Sri Lanka and the Lakshadweep islands as alternatives to the Maldives as tourist destinations.

In a recent remark, External Affairs Minister S.Jaishankar recommended Sri Lanka as a destination for Indians as the people there are friendly to India. Of course, he took care not to drag the Maldives as such into the controversy.

Likewise, Finance Minister Nirmala Sitaraman said in her budget speech that the government of India would do all it can to promote Lakshadweep islands as a tourist destination, again without mentioning the Maldives.

The Maldivian ruling circles suspect that India is promoting the Lakshadweep islands to beat the pro-Chinese Maldivian government into submission.

Ranil, Chandrika at Matara arts festival inauguration

President Ranil Wickremesinghe yesterday (02) inaugurated the Matara Festival of the Arts that showcases contemporary art and music from Sri Lanka and beyond.

It is taking place until tomorrow at the historic Matara Fort.

The festival endeavors to promote economic and social revitalization through collaborative efforts among art organizations and the cultural community.

Following in the footsteps of the renowned Galle Literary Festival, the Matara Festival of the Arts promises a unique experience for both locals and international tourists.

The president left his mark on the festivities by drawing two brush marks and leaving a commemorative note at the site where the paintings were crafted.

Pioneering this festival are Freedom Hub in Matara, led by family members of the late Mangala Samaraweera.

They are Jayanthi Samaraweera Gunawardena, Chanchala Gunawardea and Prof. Jagath Weerasinghe.

Tomorrow on Independence Day, there will be an open-air show comprising folk, jazz, bossa nova, reggae, rap, carnatic and other music at Mahinda Wijesekeara stadium.

Entrance is free for all events, excepting the musical show.

After attending the festival, the president inquired into the activities of Nilwala Park and the Matara development plan.

Also present on the occasion were former president Chandrika Kumaratunga, speaker Mahinda Yapa Abeywardena, ministers Kanchana Wijesekera and Tiran Alas, presidential adviser Sagala Ratnayaka, southern province governor Willie Gamage and US ambassador Julie Chung.

UN Warns Sri Lanka’s Online Safety Act Threatens Human Rights

The UN Human Rights Office on Friday (2) said that Sri Lanka’s new Online Safety Act will have far reaching negative implications for human rights, including freedom of expression.

In a statement posted on X, formerly known as Twitter, the UN Human Rights Office urges the government of Sri Lanka to consider amending the law to address concerns of civil society & industry groups & ensure it complies with human rights obligations

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SLPP demands resolution of issues

In a recent meeting with President Ranil Wickremesinghe, the Sri Lanka Podujana Peramuna (SLPP) emphasized the necessity of addressing key issues before committing to support him in the upcoming presidential election, according to a reliable source.

The meeting, initially planned at the President’s official residence, saw a change of venue to the Presidential Secretariat. SLPP General Secretary Sagara Kariyawasam objected to the meeting being turned into an all-party gathering without prior notice.

Initially invited to the President’s residence, the SLPP attended the meeting under the impression that it would be an exclusive discussion between the party and the President.

At the outset of the meeting, President Wickremesinghe expressed his intent to gather perspectives on the modalities for contesting the forthcoming presidential election.

However, tensions arose when other party representatives, including some from the Sri Lanka Freedom Party (SLFP) and the Nimal Lanza group, were present.

Reportedly, Kariyawasam expressed frustration over the unexpected inclusion of other party representatives and asserted that his party was not prepared to discuss presidential election matters abruptly. He insisted that there were specific issues to be addressed prior to any election discussions.

Agriculture Minister Mahinda Amaraweera, representing the SLFP, argued that separate meetings could be conducted due to time constraints. He cited the active engagement of opposition parties such as the Samagi Jana Balawegaya (SJB) and the National People’s Power.

In response, Kariyawasam emphasized that the SLPP operates dif­ferently from other parties and insisted on a separate meeting with the President. He clarified that the SLPP had not yet decided on supporting any specific candidate.

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Keheliya Rambukwella remanded until February 15

Minister Keheliya Rambukwella has been remanded until the 15th of February after he was produced before court on Saturday morning following his arrest by the Criminal Investigations Department on Friday.

Minister Keheliya Rambukwella was arrested by the CID over the controversial human immunoglobulin procurement scandal.

Maligakanda Magistrate Lochana Abeywickrama imposed an overseas travel ban on Minister Keheliya Rambukwella and ordered him to report to the Criminal Investigations Department to provide a statement.

76 years on is Sri Lanka independent or in-dependence? What are we celebrating? By Raj Gonsalkorale

Sri Lanka has not had the benefit of a local Mahatma Gandhi, neither then, nor even today. So the country has to have a different model to India. The ideal model would be a collective leadership with a high level multiparty governing council for a period of time at least to chart a common economic program that sets some key parameters and strategies to set the country on a long term economic and social revival

There was no fight for . . . freedom which involved a fight for principles, policies, and programmes … No. It just came overnight. We just woke up one day and we were told, “You are a dominion now.” – S.W.R.D. Bandaranaike, Ceylon Prime Minister

(1956-1959)

Sri Lanka was declared bankrupt last year, 75 years after independence. The country owes more than it’s worth (or GDP) and its debt to GDP ratio is 120%. Its foreign debt is some $ 55 billion. It has hardly any foreign reserves that the country could call its own as borrowings are also included as foreign reserves. The country has been bailed out on several occasions by India, and China has loaned some $ 7 billion for infrastructure projects.

It has an airline that has been accumulating huge debts, $ 1 billion (https://www.ch-aviation.com/news/125137-colombo-to-take-on-srilankan-airlines-1bn-debt-official) and it has two other major government agencies with huge losses Ceylon Petroleum Corporation and the Ceylon Electricity Board. The Public Finance web page providing free and open access to public finance data and analysis states that during the first four months of 2022 the cumulative loss of State-Owned Enterprises (SOEs) amounted to Rs. 860 billion and that this figure outweighed the annual loss of SOEs in 2021. The top 3 contributors to the increase of the loss are listed as (1) Ceylon Petroleum Corporation (CPC) (2) SriLankan Airlines and the (3) Ceylon Electricity Board (https://publicfinance.lk/en/topics/total-soe-losses-in-the-first-four-months-of-2022-outweigh-annual-losses-in-2021-1660039438).

The country’s public health system is in crisis and so is the education sector. Poverty levels have increased as has malnutrition especially amongst children. Recent government income revenue measures have dealt a crippling blow to a huge segment of the society while many seem to opine that these measures are not equitable and hit those in the lower income scales far more than those at the higher levels.

Given this backdrop, what is there to celebrate? Instead, the country should be mourning what has befallen it in the hands of those who have governed it since independence in 1948. While the current Government has been making some unpopular decisions to arrest the country’s decline and has sought assistance from the IMF to provide some oxygen, no Opposition political party or a leader has offered specific alternate solutions as to how they would address these serious issues although their criticisms have been very loud. Reminds one of empty vessels.

This is the backdrop to the troublesome situation the country is in on its 76th independence anniversary. Despite this, in true “nava gilunath band chun” style (a reference to the sinking Titanic when the ship’s band kept playing while the ship was sinking), the country is celebrating the event!

What did the country achieve in 1948 and was there a universal feeling of being free?

The Oxford Academic, its International Journal of Constitutional Law, in an article authored by Rehan Abeyaratne and published on 21 January 2020, examines in detail the status of sovereignty in Ceylon’s Dominion period (1948–1972). He says that “unlike India and Pakistan, which experienced protracted and violent struggles for independence, and then appointed constituent assemblies to draft indigenous constitutions, Ceylon remained loyal to the British government in the 1940s. It achieved Dominion status through constitutional reforms negotiated by anglicised—and largely Anglophile—political leaders. This elite-driven process aimed to engender goodwill from the British government that would lead to greater concessions, culminating in the Ceylon Independence Act, 1947, which entrenched Dominion status” (https://academic.oup.com/icon/article/17/4/1258/5710838?login=false).

While Sri Lanka (then Ceylon) became “free” from British colonial rule on 4 February 1948, the status it had from then till 22 May 1972, was that of a Dominion within the British Empire. It retained the British sovereign as its own sovereign, and it took 24 years from then for Ceylon to be truly free politically when the country became a Republic on 22 May 1972. India became a Republic three years after they were granted dominion status in 1947.

Unacknowledged factors that influenced “independence”.

India’s freedom struggle

While it is known and well recorded that India, under the leadership of Mahatma Gandhi, carried out an unyielding fight for independence from Britain, there are no similar records of Sri Lankans (then Ceylonese) “fighting” for the country’s independence.

This is echoed by Dharmasiri Kariyawasam in his YouTube series titled “Kaarige Channel Eka” where he states that there are no similar records of Sri Lankans (then Ceylonese) “fighting” for the country’s independence as India did. In fact, if one were to go by the revelations made by Kariyawasam, even the leader subsequently named the Father of the Nation, had been content to settle for what one might call, a “dependent, limited, self-determination” where the elite in Sri Lanka would continue to rule Ceylon without any plans for a broad-based independent Ceylon.

b. The Atlantic Conference & Charter of 1941

Another little known or acknowledged factor that influenced and galvanised freedom fighters like Mahatma Gandhi to fight for independence in India was a particular development related to World War 2. This was the Atlantic Conference & Charter, 1941, a joint declaration released by the US President Franklin D. Roosevelt and British Prime Minister Winston Churchill on 14 August 1941, following a meeting of the two heads of government in Newfoundland. The Atlantic Charter provided a broad statement of US and British war aims (https://history.state.gov/milestones/1937-1945/atlantic-conf).

The Charter they drafted included eight “common principles” that the United States and Britain would be committed to supporting in the postwar world. These principles were.

1. No territorial gains were to be sought by the United States or the United Kingdom.

2. Territorial adjustments must be in accord with the wishes of the peoples concerned.

3. All people had a right to self-determination

4. Trade barriers were to be lowered.

5. There was to be global economic co-operation and advancement of social welfare.

6. The participants would work for a world free of want and fear.

7. The participants would work for freedom of the seas.

8. There was to be disarmament of aggressor nations and a common disarmament after the war.

As can be seen, a significant inclusion was that both the United States and Britain would be committed to supporting the restoration of self-governments for all countries that had been occupied during the war and allowing all peoples to choose their own form of government.

Although the Atlantic Charter of August 1941 was not a binding treaty, it was, nonetheless, significant for several reasons, amongst them, the right for self-determination. It is a widely published view though that Winston Churchill vehemently opposed the right for self-determination for countries as he felt that it would end British colonialism. It may be inferred that this is exactly what President Roosevelt had in mind!

Sadly, going on the current utterings by political leaders and the culture of promises rather than specific governance measures, and the refusal of political leaders to accept the repeated invitation by the President to meet and discuss a common program, it is very unlikely that there will ever be a climate in the country where the country comes before the self-interests of political leaders

A letter written by Mahatma Gandhi to President Roosevelt in 1942 expresses Gandhi’s concerns about the prevarication on self-determination by Britain. Mahatma Gandhi says “I venture to think that the Allied declaration that the Allies are fighting to make the world safe for the freedom of the individual and for democracy sounds hollow so long as India and for that matter Africa are exploited by Great Britain”. Although it is reported that Roosevelt went soft on self determination to accommodate Churchill and the broader goal of the Charter itself, ultimately it did serve as an inspiration for colonial subjects throughout the Third World, from Algeria to Vietnam, including India and Sri Lanka, as the stage was set primarily by President Roosevelt, for colonialism to end.

The acknowledgment that all people had a right to self-determination gave hope to independence leaders in British colonies. Historian Caroline Elkins said, “The independence genie was out of her bottle, and it was the Atlantic Charter that had set her free.

The future

The objective here is not to discuss or debate the lesser or greater efforts of leaders at the time regarding their efforts to gain independence for the country. It is history.

It is really to present a view that unlike in India where the sense of nationalism brought together leaders and ordinary folk of India of all faiths and stations in life in a common cause, the Sri Lankan effort was limited more or less to an English educated affluent few, many of whom were at times referred to as being more British than the British. Keeping in mind the fact that only around 5% of the population was conversant with English then, the absence of inclusiveness appeared to have been a designed strategy to keep the reins of power amongst that select few. Despite several drawbacks, the Indian sense of nationalism has persisted and grown making it a country that has a nondependent, self-reliant psyche built into its inner core.

Such a psyche never developed amongst Sri Lankans, and dependency, rather than real independence has instead become its inherent psyche. Self-determination was not a goal perhaps for most people as they did not know what it meant. Hundreds of years under the reign of Kings and Queens, followed by over four centuries of colonial rule would have made the general populace, subservient and ignorant of the meaning of nationalism.

It appears that the only time the country rises as one nation with a deep sense of nationalism is during the game of international cricket. This is so whether it happens in Sri Lanka or overseas, and Sri Lankans throughout the world have cheered for the Sri Lankan cricket team.

Sri Lanka has not had the benefit of a local Mahatma Gandhi, neither then, nor even today. So the country has to have a different model to India. The ideal model would be a collective leadership with a high level multiparty governing council for a period of time at least to chart a common economic program that sets some key parameters and strategies to set the country on a long term economic and social revival. What are the parameters?

They can be (a) An agreed target for GDP growth and per capita income over an agreed period (b) a debt to GDP ratio that should be agreed and not exceeded (c) a target for export earnings and an agreed common program to achieve such a target (d) a rupee revenue target and an agreed expenditure projection as a percentage of the income (e) An agreed tax and revenue raising policy and structure that is equitable, and which includes introduction of penalties for non-disclosure and nonpayment of taxes (f) an agreed infrastructure development program based on need and not want, with a clearly defined return on investment and which may be funded by long term, low interest bilateral loans or similar borrowings from international agencies like the World Bank, BRICS, ADB (g) the creation of a future fund with two components, one for foreign exchange and the other for rupees. Such a fund should only be used for emergency situations with the approval of the above-mentioned high level multiparty governing council.

Sadly, going on the current utterings by political leaders and the culture of promises rather than specific governance measures, and the refusal of political leaders to accept the repeated invitation by the President to meet and discuss a common program, it is very unlikely that there will ever be a climate in the country where the country comes before the self-interests of political leaders.

A strategy to show public displeasure with political parties – Register a protest vote

Perhaps the voters should either not vote at the next election or spoil their votes when voting to register their displeasure with the political parties, and their leaders unless very specific governance policies and very specific measures as to how their policies are to be achieved are publicly announced by them at least three months before an election for the Presidency and the general election. If a sizable majority of people were to do this, it would send a message to the political leaders and their political parties that they are not wanted, and it could give rise to a new breed of political leaders and political parties untainted by failure, corruption and lack of strategic thinking and action. All the key political parties and their leaders today have had their stints in governments, from the Presidency to cabinet ministerships. It is the same lot that is asking the people for their vote once again to acquire power without specific policies and without specific strategies to achieve their objectives. A serious question does arise as to why people should vote them in and continue with the charade of 76 years.

People have been fooled enough with false promises and these leaders should know they cannot be fooled all the time. The truth needs to be told as to where the country is today and how the decline may be arrested and how growth and prosperity may be ushered in at least for the future generations.

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‘Is Gotabaya Rajapaksa ever going to be held accountable?’ – ITPJ

Fifteen years after the war in Sri Lanka ended, mounting evidence has emerged against former President Gotabaya Rajapaksa, for his pivotal role in the commission of war crimes and crimes against humanity during the civil war, said international human rights lawyers in a new report.

“If Sri Lanka is serious about dealing with its violent past, the litmus test is to hold Gotabaya Rajapaksa criminally accountable for war crimes and crimes against humanity,” commented the International Truth and Justice Project (ITJP)’s executive director, Yasmin Sooka.

2009

The damning report released in Johannesburg presents detailed linkage evidence connecting former President Rajapaksa to orders given by him to commanders in the field in 2009 when he was secretary to the Ministry of Defence. Although not the army commander, Gotabaya had command and effective control of the security forces.

The report shows he had contemporaneous knowledge of the violations of international humanitarian law and international criminal law being committed, and failed to take any steps to prevent them, or to hold those under his command accountable, says ITJP.

He and successive Sri Lankan governments have had countless opportunities since the war-end to initiate credible investigations into allegations of gross human rights violations and to establish prosecutions. Instead of allowing the truth to come to light, Gotabaya and his successors have perpetuated denial of the complicity of the security forces in these violations, rewarding and protecting the alleged perpetrators, charges ITJP.

The 96-page document examines evidence of Gotabaya Rajapaksa’s alleged involvement in and knowledge of attacks on the No Fire Zones set up to protect civilians, his failure to prevent and investigate summary executions, enforced disappearance, torture, rape and sexual violence, arbitrary detention and the denial of humanitarian aid to civilians.

1989

This follows a report published by the ITJP in 2022 which examined Gotabaya Rajapaksa’s alleged complicity in mass enforced disappearance in an earlier period of violence in the late eighties in Sri Lanka. As a young army officer in Matale District in 1989, Gotabaya Rajapaksa was in command and control when more than 700 people – mainly from the majority Sinhala community – disappeared under his watch.

Both he and his subordinates from the period were promoted and went on to play pivotal roles in the 2009 conflict with one currently serving as Chief of Defence Staff despite being designated for gross violations of human rights by the US Government.

In response to an ITJP submission, UN experts wrote to the current government in 2022 asking what they had done to investigate Gotabaya Rajapaksa’s role in the violence in the late eighties.

To date there has been no response. This is despite the fact that the government of Sri Lanka says it now wants to establish a Truth Commission to deal with the past – something it had promised in 2015.

“Gotabaya Rajapaksa is arguably the most notorious alleged perpetrator involved in both the violence against Tamils and Sinhalese; there is a direct line of impunity running from 1989 to 2009 and to the present day,” said Ms. Sooka. “There have been several commissions of inquiry with reports unpublished and recommendations not implemented; these left many families of the victims disillusioned and distrustful of the government. It is widely accepted that commissions alone cannot achieve that guarantee of non-recurrence that societies need after conflict – without
criminal accountability”.

Accountability Attempts

The ITJP assisted eleven Tamil and Sinhala victims to file a civil case against Gotabaya Rajapaksa for torture in the United States in 2019 but he acquired head of state immunity by being elected President that year. Another case accused him of involvement in the assassination of Sunday Leader founding editor Lasantha Wickremetunge.

In 2022, Rajapaksa was chased out of office by protestors angry about his mismanagement of the economy. He fled to Singapore where the ITJP submitted a criminal complaint against him over his wartime role but he soon returned to Sri Lanka where he has continued to enjoy protection despite the change of President.
Canada however has led the way in recently sanctioning Gotabaya Rajapaksa and his brother.

Other countries have been reluctant to follow suit, including those who voted at the UN Human Rights Council for the establishment of a UN project looking at accountability for Sri Lanka, says ITJP.

The current government of Sri Lanka has been arguing it can’t tackle a crippling economic crisis at the same time as holding the security forces accountable for mass atrocities. The same arguments were made in the past and only further entrenched impunity, charged ITJP.

Indian firm to manage Sri Lanka’s three key airports: Minister

An Indian firm is in the process of being given to manage Sri Lanka’s three airports including the main Bandaranaike International Airport (BIA) where the island nation has now seen an over saturation in foreign tourists, Tourism Minister Harin Fernando said.

The island nation is expecting 2.2 million tourists for 2024, but the main airport needs capacity improvement to handle the

“An Indian firm is going to manage three airports. If it happens, the airports could reach a good level,” Harin Fernando told Economy Next on Wednesday (31).

However, he did not name the Indian firm.

The three airports are Colombo (Bandaranaike International Airport), Rathmalana, and Mattala, he said.

Media reports last month suggested that Russia has expressed its keenness to get into a joint venture with India involving private entities to run the Mattala Rajapaksa International Airport (MRIA) in southern Sri Lanka.

Analysts have said the move to manage Chinese built Mattala Airport, which is considered as the “World’s Emptiest Airport” would be to check in China in Sri Lanka’s deep Southern city of Hambantota where Beijing owns a massive port and is awarded to build a $4.5 billion oil refinery.

The latest move also comes when the island nation’s expansion plan at the main airport has been delayed after the country declared bankruptcy in April 2022.

As a move, tourists face some difficulties at immigration, government officials have said.

“That’s a mess, honestly. That’s one of the biggest worries,” Fernando said.

“Immigration cannot handle the Airport load in Sri Lanka. That’s why I told the president to let the Charter flight operations to be landed in Mattala and Indian (Charter) flights to be landed in Ratmalana airport.”

“Most of them (Indians) travel to Wellawatta and Colombo. So, it is easier for them. The only issue is there is a ban that the flights can’t go above the parliament. But still you can divert two knots and come through the sea. Again, there is an issue with landing bigger aircraft.”

US says Online Safety Bill sends negative signal

The United States says the Online Safety Bill, which was recently passed by Sri Lanka’s Parliament, sends a negative signal.

Ambassador Julie J Chung’s Remarks at Amcham CXO Forum “75 years and Beyond: U.S.– Sri Lankan Business Relations in 2024”

January 31, 2024

Thanks to the Amcham President Shirendra Lawrence, members of the Board, and everyone here! It’s good to be back among friends.

Last year, we marked 75 years of the Sri Lankan/American relationship by focusing on People, Progress, and Partnership. As that celebration of 75 years concludes, it’s time to acknowledge where we are, then turn the page and look to the future. Here we are, at the dawn of a new year, just days before Sri Lanka’s Independence Day commemoration, to review the outlook for this year. I’ve already ticked off one of my new year’s resolutions: hiking up to the summit of Sri Pada/Adams Peak a few weeks ago to see the sunrise. What summits can Sri Lanka reach this year?

Just a few months ago, we were proud to announce the International Development Finance Corporation’s investment of $553 million in the Western Container Terminal at the Port of Colombo. Why was this so incredibly important? Beyond the large dollar amount, which is DFC’s second largest exposure in the entire Indo Pacific region; beyond the critical injection of private sector financing this country needs; beyond the confidence building signal it sends to potential investors and financiers that we believe in Sri Lanka’s future, it demonstrates the United States’s continuing commitment to the prosperity of Sri Lanka.

But building that future won’t be easy. The commitments required by the IMF as part of the Extended Fund Facility program call for government reform measures in both tax compliance and combatting corruption. These are hard steps, and not always popular. Sri Lanka has taken difficult measures to put the country on a long-term sustainable footing and comply with the IMF commitments. But the people of Sri Lanka deserve and continue to demand openness, transparency, and accountability from their leaders as the process of reforms moves forward. The new higher VAT rates have been a hit on the average Sri Lankan and your businesses. We understand that while there may be short term necessary pains, the public deserves to know that such measures are being taken looking at the wholeness of the problem and endemic issues that must be addressed in a structural, sustainable way, fair and transparent to all. That includes not just raising taxes but eliminating tax loopholes, addressing government inefficiencies, particularly in state owned enterprises. It means digitalizing customs to raise revenue and reduce corruption. Creating predictable customs duties and streamlined processes would encourage importers, who want to import more to Sri Lanka but are worried about the uncertainty in the import process. Unpredictable customs fees discourage importers and limit the amount of customs revenue the Sri Lankan government can collect. This shifts the burden of tax revenue further onto the shoulders of the people, who can’t bear much more. Earlier this week, I met with the National Chamber of Exporters who relayed some of their challenges – red tape, regulatory challenges, and unpredictability that impact their businesses. Exports and private sector growth will be the engine of recovery, but they need the space and support to thrive. As the largest export market for Sri Lanka, the United States can help be part of the solution.

It’s important that the government of Sri Lanka carry out reforms. But it’s also important to explain those reforms to the people in a clear manner. It makes for slower, but better legislation and reforms. One example is the Online Safety Bill. The Centre for Policy Alternatives reported from a poll earlier this month that more than 70 percent of Sri Lankans were unaware of the bill before its passage. When major global tech companies characterize the bill as “unworkable” and stifling innovation and democracy, instead of actually addressing online crimes, frankly this sends a negative signal in Sri Lanka’s path towards reform and recovery. Previous bills, such as the Personal Data Protection Act, took much longer to craft, but did a better job of taking stakeholder feedback into account. To work on legislation and reforms that will be durable, enforceable, and wise, the Sri Lankan government will need to do better in the future. This will be key to improving the business climate.

But businesses shouldn’t just sit back and wait for the Sri Lankan government to act. The private sector has a crucial role to play. Business leaders, like all of you in this room, have a role to play. You’re not only purveyors of goods and services; you’re also community thought leaders. One powerful example of this comes from the American south, during our country’s struggle for civil rights in 1964. Dr. Martin Luther King, Jr. (whose birthday we just commemorated on January 15) had just been awarded the Nobel Peace Prize for his non-violent struggle for racial equality. When Atlanta’s business leaders refused to attend a banquet in his honor, the Coca-Cola company’s president at the time, J. Paul Astin, weighed in. He had spent 14 years in South Africa and had seen firsthand what apartheid had done to that country’s economy. He publicly said, “Coca-Cola cannot stay in a city that’s going to have this kind of reaction and not honor a Nobel Peace Prize winner.” How courageous is that during those times? The city’s business leaders relented, and they honored Dr. King. Atlanta continued to grow into a city that’s now an economic powerhouse. Thamari and Lakshan from that same Coca-Cola company are in the room with us today and Coca-Cola is a valued member of our own AmCham community. Coca-Cola in Sri Lanka today leads the way in eliminating waste, better stewarding water, taking care of local communities, and taking action to combat climate change. I know all of you share in these priorities. I also encourage you to raise your collective voices to push the Sri Lankan government to fight corruption and create a stable business environment.

Two years ago, I looked across this audience and only saw one woman on AmCham’s board. I challenged you to increase that number, and you’ve done it! I’m heartened to see four women now serving on this board, including the newest member, Neela Marrikar. This is a positive step. This could be a symbol for all economic growth in Sri Lanka. Economic growth should always be inclusive growth. There’s little point in growing an economy if it doesn’t lead to better lives for all participants, including women.

One example to follow is Tania Polonnowita Wettimuny, group managing director at IAS Holdings. Since founding the company in 2016, she has overseen dramatic growth and is now employing more than 300 people across four companies. She has also served as the first female chairperson of the Sri Lanka Logistics & Freight Forwarders Association. In the same way that this group needs 20 more Tanias, the country of Sri Lanka needs thousands more like her. And the good news is that you have them; they are waiting in the wings! They need examples like Tania and encouragement from the rest of us to take up the leadership roles of the future.

We’re hopeful as we look ahead to that future. We see a resurgence of U.S. investment interest in Sri Lanka. We also see some companies in Sri Lanka like GRI Tires, Melwa, Fortude, and M.A.S. who are making investments in the United States. We all know that trade and investment are a two-way street. We believe that these investments in the United States, if wisely made, will lead to economic growth both in Sri Lanka and in the United States.

For anyone who wants to look at how investing in the United States can help drive growth that benefits Sri Lanka, we invite you to attend the SelectUSA Investment Summit in June at Baltimore’s National Harbor. Today is the last day to sign up at the Early Bird discounted price. If you want more information, you can see Andrew Shinn, one of our economic officers, who is here today. He can help you get signed up.

Even as we see a resurgence of interest in two-way investment, we also see challenges ahead that will require leadership. Both of our countries will have elections this year. We need to do all we can to stabilize the business environment. As leaders, we need to think about both the medium-term and the long-term. In the medium term, we need to create an environment that’s conducive to trade, investment, and business expansion. One with transparent governance, where corruption is no longer tolerated. In the long term, we need to raise up a generation of leaders to take our place. There are several ways we should be doing this. Prabhash Subasinghe provides one example: he brought his daughter Saanya into GRI’s marketing leadership. Saanya was educated in the United States, at my alma mater Columbia University, and returned to Sri Lanka to work with GRI. I had the chance to talk with her about six months ago at the U.S. Embassy, where we talked about empowering women leaders. And Harry Jayawardena has similarly recruited his daughter Stasshani to work with him at Aitken Spence. Stasshani, another impressive up-and-coming leader whom I’ve also met with, is another beneficiary of U.S. training and education. Other leaders are looking to middle ranks to find successors to mentor. Every one of our organizations needs to think more about tomorrow’s leaders. To do that, we need to use our proactive priority-setting power to drive our organizations to identify and train future leaders – both women and men- at all levels. They will, after all, inherit the world we have worked so hard to build.

I’ll end with a thought about Apple. Apple just became the world’s most valuable brand, beating out Microsoft, Google, and Amazon. Apple increased its brand value by 74% in the past year. The top four global brands are American. Nearly 50 years after it was created, after almost going bankrupt, after facing tumultuous management changes, how did Apple become the world’s most valuable brand? It took innovation, openness to making mistakes, and creativity — all things that Sri Lankans can be and Sri Lankan companies can do. We should see Sri Lanka’s own Apple take seed here and grow to be a global leader. The United States government is cheering for you, and we stand ready to partner to create an environment that enables you and the next generation of companies to succeed. Let’s all hike up our own summits this year, whether in our personal lives, in your companies, or for Sri Lanka as a country. Thank you.