Development in Colombo, H’tota, Trinco & Jaffna to be fast-tracked

Minister of Urban Development Prasanna Ranatunga says relevant units have been advised to fast track development initiatives in Colombo, Hambantota, Trincomalee and Jaffna.

The Urban Development Ministry issuing a statement said the cities are identified as the four major cities for physical resource development.

Minister Ranatunga said nine economic corridors have been identified connecting the four cities.

The Ministry noted that Colombo has been identified as the main commercial and financial hub of the country while the Urban Development Authority has already published the Colombo City Development Plan for the next eight years via a Gazette.

Under this programme, the Kirimandala Mawatha City Development Project and the Urban Revitalization Housing Projects are underway while the Borella city development plan is being compiled.

The Ministry stated that the Hambantota City Development Plan will be updated while the international conference hall, port, Mattala Airport, dry zone botanical garden and administrative complex identified under this plan have already been completed.

The preparation of the Trincomalee City Development Plan has already commenced to identify Trincomalee as a major commercial city and include several local government bodies.

Accordingly, the Trincomalee port development, oil terminal development and Kappalthurai industrial zone are expected to be developed while arrangements have been made to prepare plans in consultation with the relevant institutions.

Minister Ranatunga said a development plan for the Jaffna Peninsula is also being prepared and under the plan the Kankasanthurai city development, port development, expansion of the Palali airport facilities, industrial and information technology development and several mixed development projects are expected to be implemented.

The Urban Development Minister said alongside these four major city development projects, Dambulla, Kandy and Galle development efforts have also commenced.

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Indian FM recalls role played to restore Thiruketheeswaram Temple in Mannar

Indian External Affairs Minister S Jaishankar today recalled the role played by India to restore a temple in Mannar.

He said that India restored the Thiruketheeswaram Temple in Mannar which was closed for 12 years.

“Even in Sri Lanka, we restored the Thiruketheeswaram Temple in Mannar. This temple was closed for 12 years. So the fact that we took interest, made efforts, has made it possible for the revival of that temple,” he said.

He expressed these views while addressing the Kashi Tamil Sangamam on the subject ‘contribution of temples in society and nation building’ held in Varanasi.

Thiruketheeswaram Temple, one of the five sacred Ishwarams dedicated to Lord Shiva, is venerated by Shaivites throughout the subcontinent and the temple was testimony to the most difficult period in the history of Sri Lanka as it was closed for 12 years during the armed conflict and reopened in 2002.

Addressing the Kashi Tamil Sangamam Jaishankar said, “There are temples not only in India, not only in the Indian subcontinent, but in many regions beyond.”

Sajith unanimously re-elected as SJB leader

MP Sajith Premadasa has been unanimously re-elected as the Leader of the Samagi Jana Balawegaya (SJB) at the party’s annual conference currently underway at Campbell Park in Borella.

Taking to the stage, SJB general secretary MP Ranjith Madduma Bandara nominated the Opposition Leader’s name for the position of party leader for the year 2023 and asked for a show of hands to second it.

Accordingly, Mr. Premadasa was unanimously re-elected as the party’s leader for the year 2023.

The party leader then proceeded to take the stage to announce the names of the party’s office bearers for next year.

MP Sarath Fonseka was re-appointed as the Chairman of the party while MP Ranjith Madduma Bandara has been chosen as the SJB’s General Secretary once again.

MP Dr. Harsha de Silva was appointed as the Treasurer of the party and MP Tissa Attanayake was re-appointed as the National Organiser.

The third annual party conference of Samagi Jana Balavegaya (SJB) commenced at 01.00 p.m. at Campbell Park, Borella today (11) with the participation of parliamentarians and members of the alliance and leaders of many other friendly parties.

MP Ranjith Madduma Bandara said that this conference has been organized to strengthen party ahead of the upcoming local government elections.

SL misses December IMF target, new target set for January

“Sri Lanka has missed its target of obtaining Executive Board approval from the International Monetary Fund (IMF) due to the delay in getting financial assurances from its creditors, and expects the IMF approval to be granted by mid-January,” said Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe.

Speaking in an interview with TVDerana last Thursday (8), he said that Sri Lanka was unable to obtain financial assurances from creditors in the month of November as expected in the timeline presented to the public because certain creditors had internal issues to iron out.

“We were not able to get the financial assurances in the month of November. Had we been able to get them in November, we were targeting 19 December for the next IMF board meeting (to obtain IMF approval),” he said.

However, he added that Sri Lanka had missed that target due to certain reasons that he was not at liberty to disclose.

Moreover, he said that there was a delay in sharing information with all creditors on an equal, comparable, and open basis, as Sri Lanka was unable to share the necessary information with all creditors at the same time.

However, the Governor said that, as reported by the media, several partners such as Paris Club member nations, India, and China have already indicated their willingness to support Sri Lanka.

However, he said that Sri Lanka needs to get its creditors to agree to express their willingness to extend financial assistance in a formal statement to the IMF, which will then need a maximum of two to three weeks before External Board approval is obtained for the Extended Fund Facility (EFF).

He said that Sri Lanka is almost done with the process, and added that if the country can get the necessary financial assurances in December, the IMF’s Executive Board can then approve the programme in January.

Sri Lanka seeks $850m loan from India, Japan, Singapore

Sri Lanka is seeking funds from India, Japan, Singapore or some other donor agency totalling US$850 million as bridging finance until the proposed IMF facility is approved in the New Year, Finance Ministry sources disclosed.

Talks are underway with these parties to get funds for a short period of six months.

It has already obtained foreign financing of $1.87 billion by entering into eight agreements with foreign development partners and lending agencies in the first nine months of 2022, Ministry data shows.

The government will have to manage imports with available foreign exchange inflows instead of bridging finance if it is not forthcoming, State Finance Minister Shehan Semasinghe said.

Negotiations are now underway with donor countries and international financial agencies to reach agreement on foreign fund mobilisation for 2023 considering it as an emergency matter, he revealed.

Japan and India have both responded well for foreign exchange mobilisation and debt restructuring while Japan is likely to agree on bridge financing and all of these issues have been conveyed to the President, Mr. Semasinghe confirmed. The World Bank and ADB have already informed its inability on lending to Sri Lanka until debt is made sustainable and the macro-fiscal stability is restored but the two agencies are considering alternate ways to assist Sri Lanka, he disclosed.

The World Bank this week approved Sri Lanka’s request to access concessional financing from the International Development Association (IDA).

This type of financing, will enable Sri Lanka to get an IDA loan facility at low interest rates, to implement economic reform programme to stabilise the economy and protect the livelihood of millions of people facing poverty and hunger, he added.

An 8-member Presidential committee is negotiating debt restructuring with China and India and the outcome so far was positive, senior Finance Ministry official divulged.

The members of the committee are Minister of Foreign Affairs Ali Sabry, State Minister of Finance Shehan Semasinghe, Chief of Staff Sagala Ratnayake, Presidential Secretary Saman Ekanayake, Presidential Economic Adviser Dr. R.H.S. Samaratunga, Treasury Secretary Mahinda Siriwardena, Central Bank Governor Dr. Nandalal Weerasinghe and former Governor Indrajit Coomaraswamy.

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Hamilton Bank files memorandum in law to dismiss GoSL complaint

The Hamilton Reserve Bank (HRB) has filed a memorandum in law in opposition to the motion to dismiss the amended complaint filed by Sri Lanka on the grounds that the Cede and Company (Cede) authorisation confirms HRB’s standing to sue Sri Lanka for defaulting on the International Sovereign Bond (ISB) due on 25 July 2022.

On 2 December 2022, HRB filed a memorandum in law before the US District Court for the Southern District of New York in opposition to the memorandum in law filed by Sri Lanka in support of its motion to dismiss the amended complaint, rejecting Sri Lanka’s argument that the indenture of the bond must affirmatively assign Cede the power to authorise HRB to bring a suit against Sri Lanka. Therefore, HRB argued that Cede’s authorisation confirmed HRB’s standing to sue.

HRB further rejected Sri Lanka’s argument that the registered owner had no authority to authorise another to litigate in terms of provisions of the bond indenture and therefore HRB had no standing to institute the current matter.

According to HRB, it brings its claim under the bonds and nothing in the indenture bars its right to claim for payment. Therefore, it claimed that HRB had a standing to sue separate and apart from Cede’s authorisation.

Speaking to The Sunday Morning Business previously, Attorney-at-Law Manjuka Fernandopulle, who specialises in sovereign debt restructuring and complex capital market transactions, stated that even if Sri Lanka were successful in its argument to dismiss HRB’s amended complaint on the technicality that it was not the registered owner of the bonds and was merely the beneficial owner, the US court was likely to dismiss the complaint while allowing HRB to reserve its right to file a new complaint once it became the registered owner of the respective securities.

“Even if the court rejects the plaint, it will not be the end of the saga. It will likely be allowed to file a fresh action because this is only a technical matter. The court will dismiss while allowing HRB to reserve its right to file a fresh application. What has happened is that it has filed a letter in court stating that the nominee of the registered owner had consented for it to file an action. However, the argument of Clifford Chance is that HRB is not the registered owner and that the consent of the registered owner is irrelevant,” he explained.

The argument put forth in Sri Lanka’s motion to dismiss states that the option available to HRB is to ask the trustee Depository Trust Company (DTC) to institute litigation against Sri Lanka, in which case the trustee will seek to recover on behalf of all bondholders.

Alternatively, HRB could exchange its beneficial ownership interest for securities issued in its own name, thus becoming the registered owner or the holder. The indenture of the bonds expressly allows for this exchange in the event of non-payment at maturity. However, for whatever reason, HRB had not sought to do so before instituting the present action.

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Govt still to pay USD 554.33M to H’tota Port Developers

The Government of Sri Lanka (GoSL) has still to pay USD 554.33 million or RMB Yuan 673.43 to the developers of the Hambantota Port, China Harbour Engineering Company (CHEC) through Exim Bank of China and the loan servicing is being carried out by the General Treasury.

On the question of what the SLPA’s 15 per cent stake, in money terms, earned annually under the leasing agreement, while the Hambantota Port’s 85% was sold to the Chinese, the SLPA responded that the royalty received annually from the Hambantota port up to now equaled USD 100,000 (LKR and USD proportionately) based on the proportion of the USD and LKR revenue collected by the established company.

So far the GoSL has paid USD 352.38 million or RMB Yuan 26.94 million to CHEC for developing the Hambantota Port.

Ceylon Today, through RTI application, obtained details from the Ministry of Finance – Department of External Resources and the Sri Lanka Ports Authority (SLPA) as both Ministries had dealt with the developing and leasing of the Hambantota Port to the Chinese Government.

Based on the RTI, the Phase 1 of the Hambantota Port development incurred USD 447 million obtained from Exim Bank China, while, the SLPA had spent Rs 5,862 million.

The first phase was initiated on 18 November 2010 and it was completed in 2017.

Thereafter, in 2017 the GoSL, unable to repay the debt taken from CHEC, offered the Hambantota Port on a 99-year lease to Chinese company known as China Merchant Port Holding Company Limited and the Finance Ministry took over finance dealings from Sri Lanka Ports Authority and still continues to pay the developers – the CHEC, though their General Treasury.

The GoSL failed to settle the old loan taken for the development even after it was leased for 99 years for 1.4 billion and that led the government to still pay the initial loan.

According to the RTI obtained from the SLPA, they are not carrying out the repaying of the Hambantota port loan based on the decisions taken by the Cabinet of Ministers.

By Sulochana Ramiah Mohan

Isn’t there a way to downsize LG bodies? BY M.S.M. Ayub

After weeks of speculation and allegation by the Opposition parties that the government was going to postpone the local government elections, the Election Commission (EC) finally on Thursday issued an official announcement on the matter. EC Chairman Nimal Punchihewa in his statement said that the Commission had decided to announce the dates to tender nominations for the elections during the last week of this month (December).He had further said in his statement that the decision was taken at the meeting of the Commission on Thursday. This is the first official announcement on the LG elections after they were postponed by a year in February this year. The last elections to elect members for 340 LG bodies for a period of four years was held on February 10, 2018 and the next elections had to be held last February.

Before this statement was issued the EC Chairman had told the same to the Daily Mirror as well which the paper carried last Monday.

The main Opposition, Samagi Jana Balawegaya (SJB) along with the National People’s Power (NPP) or Jathika Jana Balawegaya (JJB), the political movement led by the Janatha Vimukthi Peramuna (JVP) has been demanding for the past several weeks that the elections for local authorities be held before March 20, without being postponed.

The Chairman of the Election Commission had told the Daily Mirror that he had received the Attorney General’s opinion on conducting LG elections and hence there was no legal impediment to hold the elections for 340 LG bodies by March 19, 2023. However, the polls chief had said that he could not disclose the opinion conveyed by the Attorney General.

At the same time he seemed to be cautious of possible legal hurdles. “I don’t know whether there would be any legal or Constitutional impediment in the days to come, before releasing of the gazette” he had said. Yet, now that the he has officially undertaken to announce the dates for tendering nominations, one could be assured of elections being held, without being postponed again.

The Opposition parties’ suspicion that the government was attempting to postpone the local government elections arose with a recent statement by President Ranil Wickremesinghe. Wickremesinghe while making several suggestions to the country’s electoral system at a meeting with a group of professionals at the Presidential Secretariat on October 9 had stated that the number of members in local government bodies should be brought down from the current 8000 to 4000.

Irrespective of the fact that they cannot object to the President’s suggestion, especially against the backdrop of the current economic meltdown, the Opposition parties wasted no time to decide the motive of the government. In fact there were two very strong factors that prompt one to suspect that the ruling parties, the Sri Lanka Podujana Peramuna (SLPP) and the United National Party (UNP) which the President heads might postpone LG elections.

On the one hand, both the ruling parties have least confidence in their own popularity at this juncture, owing to the unprecedented economic hardships that majority of people are currently undergoing. On the other, the notoriety that the UNP had earned for foxiness
( shrewdness) by indefinitely postponing the provincial council election during the previous Yahapalana Government is still
fresh in the minds of the people.

The UNP during the previous government attempted to postpone the PC election through a Bill with provisions to hold elections for all nine provincial councils on the same day, but it did not materialize. However, it succeeded in it by introducing a mixed electoral system for PCs. Holding elections for all nine provincial councils on the same day as well as introducing mixed electoral system which had then been agreed upon by all parties after deliberations in a Parliamentary
select committee were no doubt good. However, the UNP used those ideas with ulterior motives.

Hence, one cannot blame the Opposition parties now for suspecting that the history might repeat itself, under the same leadership of the UNP.

The leaders of the ruling SLPP and the UNP have been showing their aversion to holding any election, national or regional since lately. They rejected the call for a mid-term Parliamentary election by the Opposition parties who argue that the current Parliament no longer reflects the real opinion of the people. Also they seemed to be not in favour of holding LG elections which have to be held in March according to the law. They justify their contention citing the economic crisis. That was another reason for the speculations that the LG elections would be deferred.

The recent public uprising was a clear indication of the fast sagging popularity of the government led by the SLPP. The uprising was not organized by any political party in spite of several Opposition parties supported it in order to gain political mileage. It was a convergence of various spontaneous protests due to frustration and anger in various groups in the Sri Lankan society over economic hardships. The absence of protests and agitations in that magnitude now does not mean that the government has regained its lost popularity. The relative tranquility is merely a direct outcome of the brutal crackdown on protesters. Therefore, the election fright among the leaders and the rank and file of the two ruling parties is comprehensible.

Yet, electing more than 8000 instead of 4000 members to 341 local government bodies just because to implement the mixed electoral system is a colossal waste of public funds at a time when money is printed while the burden of various taxes are heaped on the poor people to run the government. According to some reports the government had to spend monthly a staggering Rs. 135 million for salaries and little over Rs. 600 million for other allowances of 8691 members of local government bodies elected at the 2018 elections.

Nevertheless, the salary drawn by an ordinary Pradeshiya Sabha member is about Rs. 15,000 and the mayor of a municipality draws only Rs. 30,000. Only an awfully insane person would conclude that it is for these meager payments that these local politicians spend tens of millions of rupees and dare even to kill their opponents during elections. The bottom line is that there are undeclared illegal as well as legal but unscrupulous means and powers awarded to them, to earn millions. Besides, this is a country where according to a recent newspaper report the state had paid Rs. 40,000 for certain kind of an injection when its price was only Rs. 250. It was also revealed during a recent meeting of the Committee on Public Enterprises (COPE) that the Land Reform Commission had sold lands at a rate of Rs. 373 per acre (Rs. 2 per perch). The CPC had paid millions as overtime to its employees of the refinery while it had been closed for want of crude oil. When such corruption and impunity become the order of the day, price of positions in state sector with powers would go through the roof. And higher the number of such positions higher the corruption and waste of public funds as well.

Therefore, it is high time to downsize the local government bodies, despite there being a danger of elections being put off, in the guise of doing so. However, if the government and the Opposition are honest and concerned about the plight of the people, they can arrive at a conclusion to revert first to the old PR system temporarily and hold the LG elections in March as scheduled and then change the law later to reduce the number of members. However, now it seems to be too late as the EC has decided to go ahead with elections to elect over 8000 LG members.

Cyclone Mandous kills hundreds of livestock in Sri Lanka’s northern farms

Unusually cold weather in Sri Lanka’s northern province caused by the Mandous cyclonic storm in the Bay of Bengal has led to the death of hundreds of farm animals with hundreds more falling sick.

An official said a drop in temperature below 20 degrees Celsius combined with strong winds triggered the death of nearly 350 cattle and 180 goats in four districts of the province.

Jaffna District Kilinochchi District Mullaitivu District Vavuniya District
Cattle deaths – 49 Sick – 17 Cattle deaths – 168 Sick – 159 Cattle deaths – 120 Sick – 159 Cattle deaths – 21 Sick – 17
Goat deaths – 58 Sick – 50 Goat deaths – 6 Sick – 3 Goat deaths – 42 Sick – Goat deaths – 85 Sick –
Deptaretment of Animal Production & Health (DAPH), Provincial Director, Dr S Vaseeharan attributed the incident to poor livestock management practices, which he said has been killing farming animals for years, long before the arrival of the cyclone.

“These kinds of tragedies occur every other year due to the extreme hot climatic conditions, floods and so on. These animals have no insurance cover since they are raised to be slaughtered,” Vaseeharan said.

The official said livestock in these districts have no safeguard against such natural disasters. They’re free grazing animals with no permanent shelter to protect them from environmental hazards.

“There are also 300- 400 in a herd. These animals are owned by farmers and they are sent astray to graze on available land. That’s the extent of their management system,” said Vaseeharan.

A majority of the animals, he said, are for meat production and not for dairy and therefore the farmers are not inclined to invest or care about their well-being.

The small farms too have being affected and Vaseeharan said prevention is actually impossible and the number of deaths may rise.

However, the latest updates from the Department of Meteorology said cyclone Mandous was expected to gradually weaken into a deep depression by Saturday morning and into a depression by noon.

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US imposes sanctions on another SL army officer

The US has imposed sanction on another Sri Lankan military officer, Major Prabath Bulathwatte who was arrested on suspicion that he had assisted in the abduction and torture of senior Sri Lankan journalist Keith Noyahr in 2008.

The US took this action on Friday on the occasion of International Anti-Corruption Day and on the eve of International Human Rights Day as part of its actions to promote accountability for corruption and human rights abuse around the world.

According to the State Department, the US imposed sanction Prabath Bulathwatte, former head of a clandestine Army platoon, known as the ‘Tripoli Platoon.’

Pursuant to Section 7031(c), the Department of State is designating Bulathwatte for his involvement in a gross violation of human rights, namely torture and/or cruel, inhuman, or degrading treatment or punishment of Sri Lankan journalist Keith Noyahr in May 2008, the office of the spokesperson of the US Department of State said.

According to the office, On the occasion of International Anti-Corruption Day and on the eve of International Human Rights Day, the United States is taking the actions to promote accountability for corruption and human rights abuse around the world.

These actions include financial sanctions, using Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Act, and four additional country-focused Executive Orders. The actions also include visa restrictions pursuant to Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2022 (Div. K, P.L. 117-103), as carried forward by the Continuing Appropriations Act, 2023 (Div. A, P.L. 117-180) and pursuant to Section 212(a)(3)(C) of the Immigration and Nationality Act (INA).

All property and interests in property of individuals or entities designated under E.O.s 14024, 13818, 13722, 13687, or 13553 that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to the Department of the Treasury’s Office of Foreign Assets Control (OFAC). In addition, any entities that are owned, directly or indirectly, 50% or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, all transactions by US persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods, or services from any such person.

Section 7031(c) provides that in cases where there is credible information that officials of foreign governments have been involved in significant corruption or a gross violation of human rights, those individuals and their immediate family members are generally ineligible for entry into the United States and must be either publicly or privately designated. INA Section 212(a)(3)(C) provides grounds for the Secretary of State to exclude any alien whose entry he determines would have potentially serious adverse foreign policy consequences for the United States.

In February 2020, the US had also imposed sanctions on former Army Commander and Cheif of Defence Staff Genaral Shavendra Silva for alleged war crimes committed at final stages of the conflict against the Tamil Tigers in 2009.