Sri Lanka, India step up talks to proceed with trade in Indian Rupee

India and Sri Lanka have stepped up their talks to proceed with trade in Indian Rupee.

Discussions related to matter was held during a meeting between Sri Lankan High Commissioner in Dehli Milinda Moragoda and Dr. Pramod Kumar Mishra, a cabinet rank official in India’s Prime Minister Narendra Modi’s administration.

High Commissioner Moragoda held talks with Dr. Pramod Kumar Mishra to continue the bilateral dialogue between the two nations on a number of issues, including on debt restructuring matters crucial for Sri Lanka’s economic recovery.

“The High Commissioner stressed the vital role that economic integration between the two countries could play in Sri Lanka’s economic recovery,” an official readout stated.

“High Commissioner Moragoda also followed up [Pramod Kumar Mishra] on a range of issues pertaining to the bilateral relationship that had been discussed during their last meeting in February,” the readout added, while referring to a previous round of bilateral talks between New Delhi and Colombo that addressed former’s support for latter’s economic recovery alongside aforementioned matters of bilateral cooperation.

“The matters discussed included further economic integration between Sri Lanka and India, enhancing Indian investments and tourism in Sri Lanka, ways and means to further promote bilateral trade, cooperation in power and energy sector as well as aspects relating to Rupee trade,” the official readout stated further.

Several banks in Sri Lanka have opened special rupee trading accounts, called Vostro accounts.

This means that Sri Lankan citizens can now hold $10,000 (₹8,26,823) in physical form and for transactions with their Indian counterparts, they can use Indian rupees instead of US dollars.

India’s Prime Minister Narendra Modi’s administration since July 2022, has been looking to bring countries that are short of dollars, into its rupee settlement mechanism.

Designating Indian Rupee as a legal currency in Sri Lanka has provided India’s coastal neighbour at its south much-needed liquidity support to help tide over its economic crisis amid inadequate availability of the US dollar.

Meanwhile, India’s finance ministry has asked the Indian Banks’ Association (IBA) and the Federation of Indian Export Organisations (FIEO) to proceed with an awareness campaign to sensitise stakeholders about the rupee trade.

Sri Lanka’s poverty rate has doubled – World Bank

Sri Lanka’s poverty rate continued to increase in 2021, and it then doubled between 2021 and 2022, from 13.1 to 25 percent, the World Bank, in its bi-annual report said.

“This increase has added an additional 2.5 million people into poverty in 2022,” the report highlighted.

Households experiencing food insecurity are reducing their spending on health and education. Rising food insecurity has also led to increases in malnutrition and stunting – up from 7.4 percent in 2021 to 9.4 percent in 2022.

Poverty is projected to remain above 25 percent in the next few years due to the multiple risks to households’ livelihoods, the World Bank said.

The negative economic outlook for 2023 and 2024 and adverse effects of revenue-mobilizing reforms could worsen poverty projections, according to the World Bank.

Four governors fired

The President’s Office has directed four provincial governors to step down following complaints received by parliamentarians representing the provinces.

Accordingly, the decision has been conveyed to Eastern Province Governor Anuradha Yahampath, North Western Province Governor Admiral Wasantha Karannagoda, Uva Province Governor A.J.M. Muzammil and Sabaragamuwa Governor Tikiri Kobbekaduwa.

New governors will be named soon after President Ranil Wickremesinghe returns to the country after attending the coronation of Britain’s new King Charles III in London yesterday.

Eastern province Governor Yahampath told the Sunday Times she had been informed by the President’s Office not to go ahead with a development plan under the brother province concept with Yunnan Province in China.

She said she was not aware whether this was the reason why she was called upon to quit.

The Governor of the Yunnan province was due to meet Ms. Yahampath next week.

Mr. Muzammil told the Sunday Times he was ready to step down from the post, as he had been officially informed of the decision.

The Sunday Times learns that decision to request the governors to step down had been based on parliamentarians’ complaints about the governors’ unwillingness to work with them in the provinces.

Posted in Uncategorized

New governors are expected to be appointed for five provinces

President Ranil Wickremesinghe has asked governors of several provinces to resign, according to the President’s Office.

A senior spokesperson of the President’s Office said that the resignation of governors when a president resigns and a new president is appointed is similar to the resignation of the cabinet when the prime minister resigns.

However, after the current president took office, the governors did not resign according to that tradition, so the President waited for some time for them to resign, said the spokesman.

Accordingly, the President’s office has informed the governors of several provinces to resign. Sources in the President’s Office state that these include the Northern, Eastern, Sabaragamuwa, Uva and North-Western provinces.

After the resignation of those governors, new governors will be appointed after the President’s return to the country from his visit to the UK.

Meanwhile, Mrs. Anuradha Yahampath, Governor of the Eastern Province, has hinted that she will have to resign from the post of Governor in the next few days. While addressing a Vesak ceremony held last night (6) in Trincomalee, Mrs. Anuradha Yahampath said that this may be the last time she will address the people of the province as the governor.

Police attempt to disrupt protest against north land grabbing thwarted

An attempt by the police to disrupt a protest in Kankesanthurai in the north against alleged land grabbing, by preventing supplies to Tamil protestors, has been thwarted.

A three day agitation began on May 03 against a temple newly-constructed by the Army in Walikamam North.

Protestors charged private land had been acquired without the permission of the area’s land officer to construct Tissa Vihara.

Five protestors arrested by the police have been released on bail.

Mallakam magistrate Gayatri Selavan visited the place said people had a right to protest.

The Army said the pinnacle of the Stupa at the temple was placed on April 27.

It added that the temple dates back to third century BC and was built by King Devanampiyatissa.

However, protestors say 6.2 acres of land belonging to 14 Tamil families had been acquired by force to build the temple.

On the first day of the protest, police and the protestors were involved in a heated exchange of words, after which the police barricaded the area and prevented water, food and medicines from reaching them. On the following day, the Human Rights Commission intervened and the supplies resumed.

Tamil MPs Mavai Senadhiraja, Sivagnanam Sridharan, Dharmalingam Siddarthan, M.A. Sumanthiran and Angajan Ramanathan visited the protestors and extended their support.

Sumanthiran said the Thelippalai regional development committee decided in 2021 not to permit the temple’s construction and the divisional secretary too, has not given the permission.

Posted in Uncategorized

Mano Ganesan slams Ranil’s rhetoric on Tamil issues

Claiming that nothing progressive has taken place with regard to the issues faced by the Tamil community and estate workers under the leadership of President Ranil Wickremesinghe, Opposition Parliamentarian and Tamil Progressive Alliance Leader Mano Ganesan said that the former should “walk the talk” concerning the same.

Speaking to The Daily Morning, Ganesan said that the President has been making various statements from time to time that he would take steps to resolve the issues faced by the Tamil community and estate workers. “Wickremesinghe has been talking a lot to local and foreign media about this matter. He even said that he would resolve the Tamil national issue by Independence Day (4 February). Nothing progressive has been done. So, I tell him to walk the talk without merely making statements.” He also said that the Wickremesinghe led Government had not paid attention to the issues faced by the estate workers, particularly in the upcountry areas. “There are many underprivileged and undernourished families among the estate workers. Various surveys have proven it. We have requested the Government to ensure that such families are included in the social security beneficiaries’ lists, but it is not happening. This is very unfortunate. Can the Government not understand that there is no way for them to survive?,” he queried.

President Wickremesinghe had been pledging to resolve the issues faced by the Tamil community, particularly in the North and the East, and the estate sector workers. The frequent issues that they face include the detention of certain individuals under the Prevention of Terrorism (Temporary Provisions) Act, the occupation of their lands by the military forces and the non-implementation of the 13th Amendment to the Constitution. The President also had several rounds of discussions with Tamil MPs regarding the resolution of such issues.

Posted in Uncategorized

President attends Commonwealth Summit in London

President Ranil Wickremesinghe is currently attending the Commonwealth Leaders Meeting being held at the Commonwealth Secretariat in London, United Kingdom (UK).

Wickremesinghe also met with Rwandan President Paul Kagame in London, to discuss potential areas of cooperation on agriculture and healthcare between the two nations, the President’s Media Division (PMD) reported.

Accordingly, they proposed an exchange of visits by the relevant ministers and discussed military cooperation , while President Wickremesinghe also offered training for rapid response to natural disasters.

The Head of State left for the UK last morning (04 May), in order to attend the coronation ceremony of King Charles III, which is due to be held tomorrow (06 May) at the Westminster Abbey.

Thus, taking advantage of the gathering of the Presidents and Heads of Government of Commonwealth countries who are currently in London for the ceremonial event, a Commonwealth Summit was held by the Commonwealth Secretariat today.

Posted in Uncategorized

Circular on Monday to reinstate state employees contesting LG polls: Minister

The circular to reinstate state employees who are contesting the Local Government elections will be issued by the Ministry of Provincial Councils and Local Government on Monday, State Minister Janaka Wakkumbura said.

“The Ministry will issue the circular after the approval by the Election Commission on Monday. Accordingly, these candidates will be reinstated to the nearest service requirement outside of their electorates,” he said.

Canada to support economic stabilization of Sri Lanka

The High Commissioner of Canada to Sri Lanka Eric Walsh has said that the Canadian government will continue to support the economic stabilization program in Sri Lanka.

The High Commissioner has given this assurance during a discussion with the Acting Minister of Finance Shehan Semasinghe held Wednesday at the Ministry of Finance.

The Canadian High Commissioner expressed his appreciation for the reforms carried out by Sri Lanka for the economic recovery program, the Minister said.

During the discussion Minister Semasinghe has pointed out that Sri Lanka values resilience and determination of Sri Lankan citizens for stabilization of the economy.

The High Commissioner further mentioned that the Government of Canada will continue to support the implementation of development programs in Sri Lanka and we discussed on the government’s priority on agriculture modernization and assisting SMEs.