Author: TELO Admin

Pledges by Sri Lanka’s new President Anura Kumara Dissanayake to cut taxes and make changes to the country’s International Monetary Fund bailout could keep the country’s credit risks elevated for some time, rating agency Moody’s has said.

“We do not expect significant disruption to the country’s reform agenda or macroeconomic policies, which include the ongoing debt restructuring and structural adjustments under its programme with the International Monetary Fund (IMF),” Moody’s said,

“However, some policies are likely to be reprioritised amid challenges in maintaining fiscal consolidation that could keep credit risks elevated for some time.”

Since its default in 2022, Sri Lanka has implemented various steps to restore fiscal sustainability, such as raising VAT and corporate tax rates and lowering personal tax-free allowances.

Moody’s, which rates Sri Lanka just above default at Ca, said the measures helped lift government revenues to just over 11% of GDP in 2023 from 8.3% in 2021 and narrowed its fiscal deficit to 8.3% of GDP from 11.7%.

That is still an gaping deficit and debt affordability is expected to remain “weak” too with its interest payments alone likely to soak up 40%-50% of revenues over the next two to three years.

That is “still among the weakest across sovereigns we rate, albeit an improvement from more than 70% in 2021”, Moody’s said.

Source: Reuters

The Election Commission has released information on seat allocations for Sri Lanka’s 2024 parliamentary election to be held on November 14.

A breakdown of the allocations by district is as follows:

Colombo: -1 seat (18 total)
Gampaha: +1 seat (19 total)
Kalutara: +1 seat (11 total)
Kandy: 0 change (12 total)
Matale: 0 change (5 total)
Nuwara Eliya: 0 change (8 total)
Galle: 0 change (9 total)
Matara: 0 change (7 total)
Hambantota: 0 change (7 total)
Jaffna: -1 seat (6 total)
Vanni: 0 change (6 total)
Batticaloa: 0 change (5 total)
Digamadulla: 0 change (7 total)
Trincomalee: 0 change (4 total)
Kurunegala: 0 change (15 total)
Puttalam: 0 change (8 total)
Anuradhapura: 0 change (9 total)
Polonnaruwa: 0 change (5 total)
Badulla: 0 change (9 total)
Moneragala: 0 change (6 total)
Ratnapura: 0 change (11 total)
Kegalle: 0 change (9 total)

Sri Lanka’s 1978 constitution introduced a radical departure to the previously existing electoral system and electoral districts. According to parliament.lk, the previous system was based on constituencies with individual candidates nominated by recognised political parties or independent candidates. The candidate obtaining the highest number of votes in respect of the constituency was declared elected. This system, commonly described as the First-past-the-post (FPP) system, was changed in to a system of Proportional Representation in respect of 22 electoral districts.

“The apportionment of the number of members to be returned from each electoral district is made by the Commissioner of Elections in terms of Article 98 (8) of the Constitution. In all, 196 Members of Parliament are returned on the basis of the voting in the respective electoral districts. The 15 th Amendment to the Constitution introduced Article 99A, which provides for 29 members to be declared elected on the basis of the total number of votes polled by the respective political parties or independent groups at the national level (the National List). Thus, we have a proportional system at the district level and a proportional system at the national level based on the same poll.”

In terms of section 99 (6) (a) of the Constitution, a recognised political party or independent group polling less than 1/20 th (5 percent) of the total votes polled within the district is disqualified and the balance valid votes are reckoned for allocation of seats on the basis of the proportional computation.

In each district, parliament.lk notes, the political party or independent group securing the highest number of votes is entitled to have one member declared elected (the Bonus seat). The remaining number of members is declared elected on the basis of the proportion of votes obtained by the political party or the independent group.

“The 14th Amendment to the Constitution introduced a system of preferential voting on the basis of which, the particular candidates to be returned from within each political party or independent group is determined. Each voter is entitled to indicate his\her preference within the list of candidates of the political party or group to which the vote is cast. Three such preferences could be indicated on the basis of the number assigned to a particular candidate after the nomination paper is accepted by the Returning Officer. The counting of preference votes takes place at the second stage of the counting process in order to determine the particular candidates who would be declared elected from within each political party or independent group.”

Newly appointed Foreign Affairs Minister Vijitha Herath said, in his first public function on Tuesday, requested Saudi Arabia to be a strong partner in the development process of Sri Lanka by investing especially in the tourism sector and Dedicated Pharmaceutical Zone in Hambantota, IT Parks, Fabric Park in Batticaloa, Colombo Port City and Hambantota Port.

Making his remarks to mark the national day of Saudi Arabia, the Minister said he appreciates that Saudi Arabia continuously supports Sri Lanka at the UNHRC (United Nations Human Rights Council).

“Reflecting the very solid bilateral relations, I am pleased to note that the Government of Saudi Arabia has extended its support to the debt restructuring process of Sri Lanka. Also I wish to place on record our appreciation for Saudi Arabia’s loan disbursement for projects that are funded by the Saudi Fund for Development, since 1981, including 13 projects in water, energy, health, roads, and education, on concessionary terms. The development of the Peradeniya-Badulla-Chenkaladi Road Project, Wayamba University Township Development Project, Epilepsy Hospital and Health Centers Project and Left Bank Development Project in Kalu Ganga are among the development projects funded by the Saudi Fund for Development, that have made an invaluable contribution to uplifting the livesof people in Sri Lanka,” he said.

He said he appreciates Saudi Arabia for providing employment opportunities for a large number of Sri Lankans. Currently, there are approximately 200,000 Sri Lankan migrant workers who work in the Kingdom. The two countries have recently entered into an Agreement on Skill Verification, which allows skilled and semi-skilled workers from Sri Lanka to find employment opportunities in Saudi Arabia.

He also said Sri Lanka has announced visa free access for citizens of 35 countries, including Saudi Arabia, from October 01, 2024.

“This visa-free facility will be valid for 6 months stay for tourism purposes. Hence, I take this opportunity to invite our Saudi Arabianfriends to visit Sri Lanka and experience its ancient history, rich culture and natural beauty,” he said.

In first address to the nation President Anura Kumara Dissanayake promises economic stability, inclusivity, and public service reform

Stresses need for short-term economic stabilisation measures before long term reforms

Assures swift action to relieve immediate financial pressures on citizens

Admits he will begin discussions with IMF soon and continue with the Extended Fund Facility

Pledges to accelerate SL’s debt restructuring process by holding discussions with relevant creditors to secure debt relief

Underscores his desire to promote inclusivity, vowing to foster a sense of national unity across all ethnic and religious groups

Says he is committed to maintaining public service integrity while building a nation that respects the rule of law

In his first address to the nation since assuming office, President Anura Kumara Dissanayake last night outlined his administration’s vision for a stable economy, national unity, and comprehensive reforms aimed at transforming Sri Lanka.

During the televised speech, Dissanayake emphasised the urgent need for economic stabilisation and trust-building, which he identified as the foundation for broader structural changes across sectors.

“We will begin discussions with the International Monetary Fund (IMF) soon and continue with the Extended Fund Facility,” said Dissanayake. He also pledged to accelerate Sri Lanka’s debt restructuring process by holding discussions with relevant creditors to secure debt relief. The President expressed confidence in garnering both public and international support to navigate the current economic challenges.

Before implementing long-term reforms, Dissanayake stressed the need for short-term economic stabilisation measures. “It is critical that we first stabilise the economy before executing mid and long-term plans,” he said, promising swift action to relieve immediate financial pressures on citizens.

Dissanayake also highlighted the importance of political and social change. He noted that his administration is committed to addressing the negative traits in Sri Lanka’s political culture. “One of the primary changes citizens expect is to eliminate the negative elements in our politics,” he said, pointing to the violence-free nature of the recent Presidential election as a positive step forward.

The President’s address underscored his desire to promote inclusivity, vowing to foster a sense of national unity across all ethnic and religious groups. “We must create a practical environment where everyone — Sinhalese, Tamil, Muslim, Burgher, or Malay — can proudly say, ‘We are Sri Lankan citizens,’” he declared. He committed to implementing necessary constitutional, economic, and political reforms to end divisive practices based on race, religion, or caste.

Dissanayake also emphasised the importance of a disciplined and law-abiding society. His administration, he said, is committed to maintaining public service integrity while building a nation that respects the rule of law. He expressed his determination to create a public service that is both efficient and honest, and focused on the people.

Addressing concerns about Sri Lanka’s future, the President spoke of plans to elevate the country’s global image and create a nation where citizenship is a source of pride for all. “Our goal is to build a country where the world respects our passport, and where every citizen can proudly say, ‘I am a Sri Lankan.’”

In a call for unity, Dissanayake invited all Sri Lankans to join in the effort to rebuild the country. He pledged to safeguard democratic rights and ensure that all citizens are treated with respect and equality under the law. “I understand that some may feel uncertain, but I am determined to earn your trust through my actions,” he said.

The President also reaffirmed his administration’s commitment to creating a secure future for the younger generation through education, skills development, and entrepreneurship. He also emphasised the importance of enhancing women’s representation in institutions and creating a strong social safety net for those with disabilities.

Dissanayake expressed his gratitude to the people of Sri Lanka for entrusting his movement with the responsibility of governance, stating: “The ownership of this victory belongs to the entire citizenry of this country.” He also took the opportunity to honour the sacrifices made by generations of Sri Lankans, particularly women, who contributed to the country’s progress and vowed to build a thriving, inclusive nation.

The European Union (EU) says it will continue to support reforms in Sri Lanka and work with new President Anura Kumara Dissanayake.

The EU congratulated Anura Kumara Dissanayake upon his election and inauguration as President of the Democratic Socialist Republic of Sri Lanka.

“The people of Sri Lanka demonstrated once again their commitment to democracy, with a high voter turnout at the presidential elections held on 21 September. Elections took place in a peaceful manner and in a competitive political environment,” the EU said in a statement.

By invitation of the authorities of Sri Lanka, the EU deployed an Election Observation Mission (EU EOM) to undertake an independent, impartial and technical assessment of all aspects of the electoral process.

“This further reflects EU’s close cooperation with Sri Lanka on good governance and democracy. The EU EOM indicated in its preliminary report that fundamental freedoms were broadly respected and that the Election Commission of Sri Lanka (ECSL) conducted the process independently and with resolve, ensuring transparency at all key stages of the election,” the EU said.

The EU EOM identified areas where progress is needed, in particular, enhancing transparency in political finance and advancing women participation in public and political life. The EU EOM will publish a comprehensive final report including recommendations to improve future electoral process.

“Sri Lanka is an important and valued partner of the EU. Our cooperation on good governance, human rights and the rule of law, our relationship as trade and investment partners, and our joint work to combat climate change and promote green transition are built on our shared commitment to democratic values,” the EU added.

The EU said it looks forward to working with President Dissanayake and continue EU’s support to Sri Lanka’s reforms to bring the country to economic recovery, lasting reconciliation and inclusive prosperity and growth.