Installation of boat service between India and Sri Lanka to be delayed

Minister of Ports, Shipping and Aviation Nimal Siripala de Silva says that the commencement of passenger boat service between India and Sri Lanka will be delayed.

The minister says that India has changed the port it had chosen for the boat service.

The minister also says that India has requested for a few more days to increase the facilities at the Nagapatnam port which has been selected for that purpose.

The Minister also adds that due to the inadequate size of the runway of the Palali Airport, there are problems in landing planes carrying more than 65 passengers.

The minister says that 19 investors have come forward for the Mattala airport.

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Rajapaksa clan absent during DDR vote

Several Sri Lanka Podujana Peramuna (SLPP) and Samagi Jana Balawegaya (SJB) MPs were absent during the vote on the Domestic Debt Restructuring programme today in Parliament.

SJB MPs Rajitha Senaratne, Mayantha Dissanayake, Rohini Kaviratne and Mano Ganesan were among the absentees from the Opposition while Mahinda Rajapaksa, Namal Rajapaksa and Chamal Rajapaksa from the SLPP were notable absentees from the ruling party.

Proposed domestic debt optimization strategy passed in Parliament

The Resolution on Domestic Debt Optimization (DDO) was passed in Parliament with amendments a short while ago (01 July).

Accordingly, the DDO strategy was passed in Parliament with a majority of 60 votes, with 122 votes in favour and 62 votes against.

Meanwhile, the Secretary General of Parliament Kushani Rohanadeera has informed the Secretary to the Ministry of Finance, in writing, that the DDO strategy was passed in Parliament.

A full-day special parliamentary session took place today, during which lawmakers debated the restructuring of local debt, initially proposed in a bid to achieve debt sustainability and economic recovery.

On 28 June, the Cabinet of Ministers unanimously approved the proposed sovereign domestic debt restructuring strategy for restoring sovereign debt sustainability.

Following two days of extensive discussions on the strategy and its impact, the Committee on Public Finance (COPF), chaired by MP Dr. Harsha de Silva on 30 June, gave its approval for the proposed plan, with amendments binding the Finance Ministry to the proposed plan, ensuring adherence to the approved concept paper and addressing concerns about potential deviations.

The Governor of the Central Bank of Sri Lanka (CBSL), Secretary to the Finance Ministry and its officials, creditors including banks, superannuation funds EPF/ETF and insurance funds were invited to the COPF sessions to discuss the matter at length and to hear their views.

In response to questions on the DDO’s impact on superannuation funds EPF, ETF and the guarantee given to ensure 9% interest rates, CBSL Governor Dr. Nandalal Weerasinghe assured that their calculations indicate no net present value loss to the EPF. However, COPF chairman has advocated for legislating a minimum return, as done in the 1958 EPF Act.

Further, concerns were raised about the burden falling on the EPF, the largest superannuation fund in the country, without the consent of the depositors.

The COPF chairman, Dr. Harsha de Silva said the committee members called for balanced burden sharing among all creditors, not entirely on the superannuation funds, in order to uphold equity in the DDO.

Meanwhile, COPF members also raised concerns about the government’s commitment to the proposed plan and adherence to the principles of the resolution. Finance Ministry officials acknowledging these concerns, pledged to strengthen the Fiscal Management Responsibility Act (FMRA) for compliance.

Domestic debt restructuring is a key condition in the International Monetary Fund (IMF) program, through which a bailout package of USD 3 billion was approved for Sri Lanka in March 2023. The IMF program unlocks more help from international funding agencies. Accordingly, the World Bank, earlier this week, approved USD 700 million in financing as budgetary and welfare support for Sri Lanka.

After defaulting on its foreign debt for the time in May 2022, Sri Lanka has been working to get the economy back on track and to meet the conditions set by the IMF. Sri Lanka aims to restructure its sovereign domestic debt before the second IMF review in September 2023 as the release of second tranche of the bailout package due in October would require notable progress on debt restructuring. The island nation received the first tranche to the tune of USD 330 million in March soon after the IMF Board approved the 48-month Extended Fund Facility (EFF).

SJB to vote against domestic debt restructuring program in parliament

The parliamentary group of the Samagi Jana Balawegaya (SJB) has decided to vote against the Domestic Debt Optimization (DDO) program in the parliament on Saturday.

The main opposition’s decision was communicated by the party’s general secretary Ranjith Madduma Bandara this evening.

A special parliamentary session will be convened this Saturday (July 01) during which the DDO plan tabled in parliament and go into debate and a vote is expected after the debate to approve the plan.

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Sri Lanka welcomes more cooperation with China, rejects ‘debt trap’ claims

China has invested a lot in Sri Lanka in recent years and Sri Lanka looks forward to expanding the mutually beneficial partnership, Ali Sabry, Sri Lanka’s minister of foreign affairs, told the media during his visit to China.

Speaking at a press briefing at the Sri Lankan Embassy in Beijing on Wednesday afternoon, Sabry reviewed the country’s relationship with China and how it has helped Sri Lanka to develop its economy and trade.

The foreign minister also refuted the hype in some Western media reports, which have claimed that China’s Belt and Road Initiative (BRI) has pushed Sri Lanka into a “debt trap.”

“I think some media outlets use it to advance their agendas… Chinese investment was and has been very, very important to us. Sri Lanka had been depressed for 26 years. No investment was forthcoming. Everybody was adopting a vacant approach, but the Chinese investment came and propelled the growth in Sri Lanka. Therefore, we are very grateful for that,” Sabry told the Global Times at the press briefing.

“In Sri Lanka, across the party line, everybody has an excellent relationship with China,” the minister said.

Looking at the last decade or two, most of the investments in Sri Lanka have come from China, ranging from industrial facilities and technological support to agriculture and education, he said, noting that Chinese investment is very important not only for the growth of Sri Lanka but also for many other developing countries.

Regarding the country’s economic problems, the foreign minister said there were multiple factors including bad policies, the pandemic and the Russia-Ukraine conflict.

“We are not going to blame somebody else for that and we need to take ownership of that. We had serious policy deficiencies. We are now addressing those issues, overcoming them, and getting back to a sustainable way forward,” Sabry said.

The foreign minister said that the country is stabilizing the economy and is now recovering. “The most important phase now is the growth phase,” for which Chinese investment is very important, he said.

China has a big role to play in helping Sri Lanka to address these issues, he added.

Sabry said that there is a lot Sri Lanka can do together with China, while learning from China’s growth. He also said what China has achieved in recent decades has been unbelievable, adding that taking 800 million people out of poverty is a great achievement.

“For me and my country, China has been a friend. China has been a partner in progress, and it will continue to be a partner in progress in the future,” Sabry said.

Source: Global Times

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Sri Lanka in middle of the maritime security strategy

Sri Lanka’s growing strategic importance in the Indian Ocean Ring and Indo-Pacific region is becoming increasingly apparent with the arrival of a significant number of warships to the country between 2020 and the present. Continuing this trend, the Indian submarine, INS Vagir (S41), named after the sandfish, made a significant visit to the Colombo Port in Sri Lanka on 19 June 2023. This visit highlights the presence of six warships, including the submarine, from India during the first half of 2023, aligning with the Indian Prime Minister Narendra Modi’s concept of the Indian Ocean Ring.

Over the past few years, Sri Lanka has seen a higher influx of warships and submarines, compared to other countries in the region, owing to its strategic importance for powerful nations. The increase in the presence of warships and maritime security can be attributed to Sri Lanka’s partnership with China for strategic development following the end of the war. This development has raised concerns not only for India but for Japan, France and the US, as China’s influence in the Indian Ocean Ring poses a potential maritime security threat. These countries are in an attempt to curtail China’s dominance in the both Indian Ocean as well and in the Indo-Pacific region.

China also has its port operation at the CICT in the Colombo Port which is taken on 35-year lease and is currently involved in developing the East Container Terminal as well.

Despite India’s apprehension about China’s presence in the Indian Ocean Ring, Sri Lanka’s decision to engage with China, for its development needs, has made it difficult for India to counteract. In response, to China’s String of pearls, India has implemented various maritime security measures to safeguard its interests and those of the Indo-Pacific region. Initiatives such as Modi’s Sagarmala, Neighbourhood First Policy and active participation in the US-led Quad alliance demonstrate India’s commitment to protecting its interests.

India has also taken steps to establish a security framework for the Indian Ocean region by conducting over twenty annual Malabar naval exercises involving the United States and Japan. These measures reflect India’s recognition of the need to counterbalance China’s influence in the region and safeguard its own security interests. Given that South Asia and the Indian Ocean serve as India’s first line of defence against potential invasions, maintaining influence and strong relationships with neighbouring countries positions India as a regional power.

The submarine INS Vagir arrived and remained stationed in the waters from 19 to 22 June 2023, while already a Pakistan Navy Ship Tippu Sultan was here on a goodwill mission and she arrived on 19 June and departed from Port of Colombo on the 20 June 2023.

While the Pakistani war ship was in Sri Lanka a French Naval Signal Intelligence (SIGINT) Ship, Dupuy de Lôme arrived at the Port of Colombo on a formal visit on 21 June and it would leave around 26 June 2023. Pakistan said it was manifestation of common desire to cooperate as historically both nations have demonstrated to standby each other in times of need.

The French Signals Intelligence/Satellite Tracking vessel, that could be described as a spy ship, is a102.40m-long Electromagnetic Research Vessel with a crew of 107. The ship is designed for the collection of signals and communications beyond enemy lines. It entered the service of the French Navy in April 2006. It is commanded by Commander Augustin Blanchet. They are currently here in Sri Lanka.

This could be the second surveillance vessel after China’s Yuan Wang-class of tracking ships are used for tracking and support of satellite and intercontinental ballistic missiles by the People’s Liberation Army Strategic Support Force of the People’s Republic of China that arrived amidst India’s rejection.

The Chinese spy ship arrived in August 2022, despite India’s objections. Following the arrival of the Chinese vessel, India deployed several warships, including a submarine, on a friendly bilateral visit to Sri Lanka. It is a common occurrence for India to send eight to ten warships to Sri Lanka each year, given their close proximity.

Furthermore, on 22 June, a Japanese warship named Ikazuchi (DD-107) from the Japan Maritime Self-Defence Force made a formal visit to the Port of Colombo. This destroyer, measuring 150.5 metres in length, was manned by a crew of 207. This visit by the Ikazuchi follows a previous goodwill visit by one of the largest vessels of the Japan Maritime Self-Defence Force, the Kaga (DDH-184), along with the Ikazuchi in September 2020. The Indian submarine’s arrival was due to India’s International Day of Yoga (IDY) combined by the Ocean Ring of Yoga. Yoga was held in close proximity to the submarine in the Colombo Port. Visitors gathered to see the submarine to experience the connection between the Indian Ocean Ring and yoga.

The IDY was initiated by Prime Minister Modi and designated by the UN General Assembly in December 2014 and it promotes the Indian Ocean Ring and India has declared Sri Lanka as being of strategic importance as she sits in the central location within this Ring. India deployed 19 Indian Navy ships the world over to commemorate Yoga Day, including showcasing the IOR and maintaining its close ties with its immediate neighbouring countries and prioritising regional cooperation in the Indian Ocean.

Pakistan’s war ship Tippu Sultan left the shores on 20 June and the ship was one of the four Type 054A/P Class Frigates built by Hudong Zhonghua Shipbuilding, China. It is a multi-mission frigate fitted with highly sophisticated and state-of

-the art weapons/ sensors including long range air surveillance radar, 3D radar, vertical launched SAMs, towed sonar/ decoys, long range super Sonic SSM, torpedoes and advanced EW systems. These systems provide the PN with enhanced offensive-defensive combat capabilities to deter all forms of maritime threats. The ship was commissioned by the Pakistan Navy on 10 May 2023 at Shanghai, China. Captain Jawad Hussain TI (M) T Bt PN assumed command as the first Commanding Officer of the ship.

On 3 November 2022, a detachment of ships from Russia’s Pacific Fleet, led by the flagship missile cruiser Varyag, entered the area of responsibility south of Sri Lanka. Additionally, in December 2020, a group of warships from the Russian Pacific Fleet, including a submarine, concluded their business call at Sri Lanka. This group consisted of the Pacific Fleet’s Order of Nakhimov Guards Missile Cruiser Flagship Varyag, the large anti-submarine warfare ship Admiral Panteleyev, and the medium sea tanker Pechenga. The visit took place at the Port of Trincomalee. It began on 30 November.

In March 2020, a warship from the Russian Baltic Fleet also visited Sri Lanka as part of an anti-piracy deployment to the Indian Ocean. The warship’s combat team conducted drills, including search operations for a notional enemy submarine using a Ka-27 helicopter. The anti-terror squads on the ships and vessels also practised various scenarios of combating piracy in the Indian Ocean.

This year, in support of the International Day of Yoga (IDY) 2023, Indian Navy vessels deployed in the Indian Ocean will be visiting several foreign ports, including Phuket (Thailand), Chattogram (Bangladesh), Jakarta (Indonesia), Safaga (Egypt), Mombasa (Kenya), Muscat (Oman), Toamasina (Madagascar), Colombo (Sri Lanka), and Dubai (UAE). Ships such as Kiltan, Shivalik, Chennai, Sunayna, Tarkash, Trishul, Vagir, Brahmaputra, and Sumitra will participate in promoting the theme of IDY 23, ‘“Vasudhaiva Kutumbakam’.

According to former Secretary to the Foreign Ministry, Jayanath Colambage, numerous warships from different countries have visited Sri Lankan ports. Between 2009 and 2017 alone, a total of 398 warships made visits to Sri Lanka.

In the first six months of 2023, there have already been 10 warships that arrived, including six from India, and one each from China, France, Japan, and Pakistan among other countries totalling to 16.

Given Sri Lanka’s strategic location in the middle of the Indian Ocean Ring, it is expected that the country will continue to attract the attention of the same countries listed here in the article, resulting in an increase in the number of warships visiting to Sri Lankan ports. Sri Lanka’s position in the show of power struggle among powerful nations is likely to remain significant at all time.

(amiesulo@gmail.com)

By Sulochana Ramiah Mohan

PAFFREL calls for Private Member Bill on LG bodies to be defeated

Independent election monitors, People’s Action for Free and Fair Elections (PAFFREL) yesterday called for the recently gazetted Private Member’s Bill presented by Sri Lanka Podujana Peramuna (SLPP) MP Jayantha Ketagoda to be defeated.

According to PAFFREL, the failure to hold elections as scheduled while attempting to reactivate Local Government bodies whose tenure has elapsed by amending existing legislation as proposed is a significant blow to both the sovereignty of the people and the principles of democracy. “This is yet another milestone in the attempts to obstruct elections and embark on a dictatorial journey,” the organisation said.

“The private member’s proposal states that if the poll cannot be held due to a crisis at a time when the local government bodies have been dissolved and the poll called, the existing law should be amended so that the minister can recall the dissolved local government bodies for a certain period of time. According to this section, the discretionary period is not specified and accordingly, the members of the dissolved local government bodies can be recalled even for a lengthy period at the discretion of the minister.” PAFFREL noted.

PAFFREL also noted that the bill has failed to elaborate on the term ‘crisis’ allowing the Government or the relevant Minister to misuse it. The organisation said they refuse to accept this as a mere Private Member Bill given the Government’s reluctance to hold polls.

PAFFREL said with this amendment in place, it raises uncertainty about whether any government will prioritise recalling elected representatives instead of conducting elections whenever they perceive it to be unfavourable

“If any representative of the people supports this proposal to become a law, it will be a great blow to the people’s sovereignty,” PAFFREL said while urging all MPs and the people to come together to defeat the effort. PAFFREL also said it will take all legal steps possible to prevent the bill from being enacted as law.

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Govt in shameful attempt to change laws on LG bodies: NPP

The government is making a shameful attempt to bring in a Constitutional Amendment to extend the term of local authorities for an indefinite period and to reinstate the already dissolved local authorities, the National People’s Power (NPP) said.

NPP General Secretary Tilvin Silva told a news conference that a gazette notification was issued on June 23 as a private member’s bill to bring in the amendment.

“According to the Local Government Elections Ordinance, the subject minister is empowered to extend the term of a local authority for a period of one year on special circumstances. However, this particular amendment has been proposed to authorize the minister to extend the term for an indefinite period. It also proposes to reinstate a dissolved local authority,” he said.

He said this move was against the Constitution and added that previous court rulings clearly show that people’s mandate can be shortened if required but cannot be extended for any reason.

He said President Ranil Wickremesinghe has postponed the LG polls as its outcome would affect his next Presidential dream and on the other hand he is trying to reinstate local authorities so as to get the support of the SLPP.

Silva said the NPP would take every step to defeat such a move.

EAM Jaishankar, Sri Lanka’s Provincial Governor Thondaman discusses partnership, cooperation

External Affairs Minister S Jaishankar on Thursday met with the Governor of the Eastern province of Sri Lanka Senthil Thondaman and discussed development partnership and explored possibilities for further cooperation.

Taking to his official Twitter handle, Jaishankar noted that Sri Lanka is at the centre of India’s Neighbourhood First policy and Sagar outlook.

He tweeted, “Good to meet the Governor of Eastern Province of Sri Lanka Senthil Thondaman. Discussed our development partnership and explored possibilities for further cooperation. Sri Lanka is at the center of our Neighborhood First policy and Sagar outlook.”

India shares its geographical boundary with Afghanistan, Bhutan, Bangladesh, Maldives, Pakistan, Nepal and Sri Lanka. India’s policy towards its immediate neighbourhood is based on efforts to build peace and cooperation in South Asia. Its Neighbourhood First policy, accords primacy to nations in periphery with focus on encouraging trade, connectivity and people-to-people contact.

Security and Growth for All in the Region (SAGAR) is India’s policy or doctrine of maritime cooperation in the Indian Ocean region. The policy was first announced by Prime Minister Narendra Modi on March 12, 2015.

Earlier in May, the High Commissioner of Sri Lanka in New Delhi Milinda Moragoda met Principal Secretary to Prime Minister Narendra Modi, Pramod Kumar Mishra at the Prime Minister’s Office in Delhi.

Sri Lankan envoy Milinda Moragoda thanked Pramod Kumar Mishra for the support India has extended to Sri Lanka in the context of the present economic crisis and updated him on the current developments in that regard, including the debt restructuring process.

Moragoda stressed the vital role economic integration between the two countries could play in Sri Lanka’s economic recovery.

The Principal Secretary to the Prime Minister also recalled India’s close civilizational links with its southern neighbour. Moragoda also followed up with the Principal Secretary on a range of issues pertaining to the bilateral relationship that had been discussed during their last meeting in February.

The matters discussed during the meeting included further economic integration between Sri Lanka and India, enhancing Indian investments and tourism in Sri Lanka, ways and means to promote further bilateral trade, cooperation in the power and energy sector, and aspects relating to Rupee trade.
Joint Secretary at the Prime Minister’s Office Ambassador Deepak Mittal and Sri Lanka’s Deputy High Commissioner in New Delhi Niluka Kadurugamuwa also attended this meeting.

According to the High Commission of India in Colombo’s statement, India and Sri Lanka enjoy a vibrant and growing economic and commercial partnership, which has witnessed considerable expansion over the years.

Economic ties between the two nations include a flourishing development partnership that encompasses areas like infrastructure, connectivity, transportation, housing, health, livelihood and rehabilitation, education, and industrial development. (ANI)

Move to reconvene dissolved LG bodies

A private member’s motion that seeks powers to the subject minister to reconvene the dissolved local government bodies has been gazetted.

Submitted by MP Jayantha Ketagoda, it proposes amendments to certain clauses in the acts relating to municipal and urban councils and Pradeshiya Sabhas.

It was gazetted on June 26.

Meanwhile, the justice minister has gazetted a draft act with regard to laws against the contempt of the judicia