Chinese Ambassador meets SL Foreign Secretary

Chinese Ambassador Qi Zhenhong met with Sri Lankan Foreign Secretary Aruni Wijewardene this morning (01 Dec).

While a wide range of topics were discussed in the meeting, it was agreed upon for the two countries to work closely through diplomatic channels and support the professional negotiations on debt issues both bilaterally and multilaterally.

Meanwhile, Chinese Ambassador Zhenhong also met with the Chairman of Sri Lankan Airlines, Ashok Pathirage, and discussed matters concerning civil aviation and tourism cooperation between the two nations.

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Fitch downgrades Sri Lanka’s local currency debt rating to ‘CC’

Fitch on Thursday downgraded Sri Lanka’s Long-Term local-currency debt rating by two notches to “CC” from “CCC”, citing a probable local-currency debt default in the face of high interest costs and tight domestic financing conditions.

The South Asian country is suffering its worst financial turmoil since independence from Britain in 1948 as a result of economic mismanagement, as well as the COVID-19 pandemic that wiped out the Indian Ocean island’s key tourism industry.

Sri Lanka aims to restore growth to pre-crisis levels in 2026, a state finance minister said on Wednesday, with policymakers intent on meeting a December deadline to present proposals that might help unlock an International Monetary Fund bail-out

The ratings agency has affirmed Sri Lanka’s foreign currency debt rating at ‘RD’ or in default territory, reflecting the country’s worst economic crisis in decades.

Source: Reuters

NPC calls for elections soon to bring people and govt. together

The National Peace Council (NPC) has urged the government to hold the much delayed Provincial Council polls and the scheduled Local Government election.

The following is the text of the statement issued by the NPC: “President Ranil Wickremesinghe has been stressing the importance of political stability to achieve the common dream of economic restoration. His recent statement that the security forces will be used to negate any unauthorized protest is a sign that the government expects the conditions of economic hardship to escalate. The President also stated that there will be no early general elections. Stability in a polity can be ensured either through legitimacy or through force. Political stability cannot be created in a vacuum. Politicians are needed to express provincial and local level issues as well as national level issues in Parliament.

Therefore, elections need to be held at different levels of the polity as a democratic process to strengthen political stability. They will enable the people to express their views in a democratic manner to elect their representatives who they deem to be suitable for the present time. This would provide the government with guidance in terms of the decisions it is being called to take to revive the economy and place the burden in a manner that will be acceptable to the people. Local government elections have been postponed for a year and are reaching their legal maximum in terms of postponement. These elections need to be held.

The provincial council elections have been postponed since 2018. Democratically elected provincial councils share in the burdens of governance. The devolution of power through the provincial councils was intended to promote ethnic harmony in the country. Due to postponement of those elections the provinces are being governed by presidentially appointed governors which makes a mockery of the devolution of power. The President has recently stated that the solution to problems affecting the Tamil people would be found by the 75th anniversary of the country’s independence.

In the aftermath of the mass protests that led to the resignation of the prime minister, ministers and president in the period of May to July this year, there is a distance that has grown between the government and people. As a first step to healing this divide the National Peace Council calls for both local government and provincial council elections to be held without delay. The President and government could then work with them in a broader alliance to ensure political stability through decisions made that are legitimate and have the acceptance of the people.

CTU distances itself from saree issue

Ceylon Teachers’ Union (CTU) General Secretary Joseph Stalin claimed that the news currently circulating about their involvement in requesting a uniform allowance for teachers or that they are behind the campaign to replace sarees with convenient clothes for teachers were funded by the Government and baseless.

Speaking to The Morning, Stalin said that they had only requested the Ministry of Education to allow teachers to seek redress from the Government circular issued in 2022 which permitted public servants to wear convenient and comfortable attire by making the same applicable to teachers also.

“We requested the Ministry to let female teachers wear suitable attire as proposed by the Public Administrative circular. We did not want to remove the sarees of female teachers nor did we want to change the dress code of teachers. It was the Government which ran a campaign to infuse false news into the general public propagating that we were behind the campaign of the female teachers who wear casual attire instead of sarees. We are not part of that campaign,” he noted.

He also claimed that the amended circular with regard to the attire of public servants issued by the Government in response to the move of the teachers is also vague and needs to be clarified. Furthermore, he refuted claims that the CTU demanded an allowance for uniforms for teachers as claimed by some media outlets.

“The amended circular sounds very vague. We need to have a clarification regarding it from the Ministry of Education. Also, we never requested any uniform allowance as claimed in some media reports,” he said.

Stalin had recently requested the Education Ministry to apply a circular issued by the Public Administration, Home Affairs, Provincial Councils, and Local Government Ministry, which states that female public servants can report to work in any appropriate attire of their choice, instead of only the saree or osari (Kandyan way of draping the saree), for female teachers, thereby allowing them to report to schools in casual clothing.

However, Education Minister Attorney Dr. Susil Premajayantha recently said that the current dress code for school teachers will not be changed under any circumstance, further noting that such decisions could not be taken considering the request of a single trade union, as it does not represent the entire teaching community. Allowing teachers to change their attire by permitting them to wear different styles, he claimed, may set a bad example for children, who may also want to follow numerous trends at school.

Meanwhile, Public Administration, Home Affairs, Provincial Councils, and Local Government Ministry Secretary M.M.P.K. Mayadunne had stated that the circular in question was not relevant to schools, taking into account a request made by the Education Minister to define the same. However, female teachers in several schools had reported to work in casual clothing, after which it was reported that the Education Ministry had issued a circular making it mandatory for teachers to wear a saree or osari when reporting to work. However, the said circular was amended by the Ministry.

In a fresh circular, Mayadunne stated that the Public Administration circular issued in 1989 on the attire of officers in the Staff Grade and other circulars applicable to the uniform of officers, for whom a uniform has been prescribed, shall continue to remain valid. He said that the same had been decided at the Cabinet of Ministers meeting held on Monday (28 November). The two circulars, which were withdrawn, had permitted public servants to report to work in casual and appropriate attire due to the Covid-19 pandemic and economic crisis. The circular has been sent to all Ministries’ Secretaries, the Chief Secretaries of the Provinces, and Department Heads.

Samagi Jana Balawegaya (SJB) Opposition MP Rohini Kumari Wijerathna Kavirathna also claimed that this circular is intended to make female teachers don sarees forcibly. She further claimed that the Government is choosing to focus on sarees despite a lot of other more pressing issues in the education sector in need of attention. She made these allegations while speaking in Parliament yesterday (1).

“There are a lot of problems in the education sector. Children are facing many difficulties. But at present, the issue of teachers’ sarees has become the centre of attention. Now, on Wednesday (30 November), a circular was issued by Mayadunne. This has no claims about any attire in particular. It refers to circular number 8/89 of 1988. What is this circular? This was issued during the time of the late President Ranasinghe Premadasa. It happened when Premadasa visited a Gam Udawa programme held in Buttala.

“An officer had informed Premadasa about the work taking place on site. But, he was not wearing a clean suit, and therefore Premadasa had mistaken the officer for a labourer. Then, former Minister W.J.M. Lokubandara had informed the late President that the man he was speaking with was none other than the Divisional Secretary of the area. In light of this, Premadasa had then issued this circular which was referred to by Mayadunne in his circular. At that time, the circular ordered that males should wear a shirt and a tie when reporting to work. The Opposition at the time mocked it, asking whether males are not required to wear trousers. This circular is also the same. While 65% of the public sector consists of women, this does not clearly address the issue of attire for ladies including teachers. So, what should women in the public sector wear to work now? That is the point this circular should address,” she said.

Sri Lanka in talks with ADB, World Bank for US$1.9bn in loans after IMF

Sri Lanka is discussing with the World Bank and Asian Development Bank (ADB) to get loans of 1.9 billion US dollars after a reform program with International Monetary Fund is approved, former Central Bank Governor Indrajit Coomaraswamy said.

The IMF program would give 2.9 billion US dollars in tranches to the central bank after debt sustainability has been achieved. Multilateral lenders would then be able to resume lending to the government.

A policy loan now being discussed with the World Bank may bring around 700 million US dollars, Coomaraswamy told a business forum organized by CT CLSA Securities, a Colombo-based brokerage.

The Asian Development Bank may also give around 1.2 billion US dollars most of which will be budget support, he said.

Japan has also promised funding, he said.

Multilateral lenders and Japan will usually give loans for projects which will boost economic activities.

If budget support loans are given a reform program they require reform to unlock economic activities which will bring growth and future taxes to unlock growth.

With the IMF program in place, banks would also find it easier to resume or extend their credit lines, he said.

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SL debt to China close to 20% of public external debt-Study

Sri Lanka owed Chinese lenders USD 7.4 billion – nearly a fifth of its public external debt – by the end of last year, calculations by the China Africa Research Initiative (CARI) published on Wednesday showed, an estimate higher than many others.

The figure was above the “often-quoted 10 to 15 percent figures,” the study said, adding a “significant portion” of the country’s debt to China had been recorded under lending to state-owned enterprises rather than central government.

Crisis-hit Sri Lanka is in the midst of a debt restructuring after years of economic mismanagement combined with the COVID-19 pandemic saw the country plunge into the worst economic crisis since independence from Britain in 1948 and tip into default.

Export-Import Bank of China (EximBank) and China Development Bank are the two largest Chinese lenders, accounting for $4.3 billion and $3 billion respectively, according to the data collected by CARI at the Johns Hopkins University School of Advanced International Studies.

China is Sri Lanka’s largest bilateral creditor and, with India and Japan, part of official creditor talks to restructure the country’s debt.

“China will have to play a major role in Sri Lanka’s debt restructuring process,” CARI researchers Umesh Moramudali and Thilina Panduwawala wrote in the report.

The island nation kicked off talks with bilateral creditors in September after securing a staff level agreement of $2.9 billion with the International Monetary Fund. But financing will not flow until the fund’s board approves the deal, a step that requires financial assurances from bilateral lenders.

The latest talks initially expected earlier this month were postponed, casting doubt over how fast the debt rework can progress.

The island nation’s total external debt is $37.6 billion, according to the report. Adding central bank foreign currency debt, including a $1.6 billion currency swap with China, public external debt rises to $40.6 billion, of which 22% is from Chinese creditors.

CARI’s total debt numbers differ from the $46.6 billion tally published by the government in September as it excludes local hard-currency debt and loans to some state-owned enterprises.

The CARI study also identified six different loans to the deep water port in Hambantota from EximBank between 2007 and 2013 for around $1.3 billion. The loan agreements have clauses that “submit the loans to Chinese governing law and arbitration before the China International Economic and Trade Arbitration Commission”.

Reuters

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Jaffna Uni VC refuses to sign Chinese MoU

Jaffna University Vice Chancellor Sivakolundu Srisatkunarajah has refused to sign a Memorandum of Understanding (MoU) between China’s State Agricultural University and University of Jaffna on 25 November, saying that the MoU has the hidden agenda of China to grab fertile lands under the pretext of development projects in the North and East, and the Students’ Union of University of Jaffna has appealed to the Government not to sign MoUs with China against the will of the people.

In an official statement on 28 November, the Students’ Union expressed shock that a “secret arrangement was made to sign an MoU strongly supported by the Government of Sri Lanka.”

The Students’ Union expressed gratitude to their Vice Chancellor for refusing to sign the MoU.

The statement further notes that China directly and indirectly grabbed large chunks of sea areas under the pretext of promoting sea cucumber farms and created divisions among their fishermen.

“Now, China is eyeing to grab the fertile agricultural lands in the North and East with a malicious calculation to manage a severe food crisis which seems imminent in China in ten years. China allegedly supplied faecal matter with harmful bacteria as fertiliser to Sri Lanka and compelled Sri Lanka to pay millions of rupees. This is a classic example of how China will grab our fertile agricultural lands and enslave us to manage the upcoming food crisis in China.”

It further notes that it is clear that Sri Lanka has fallen into the present situation through non-transparent and unsustainable Chinese loans. Even in present negotiations for resettlement of loans, though Japan and India have supported Sri Lanka’s IMF plans, China has been persistent in its proposal for refinancing rather than restructuring with hidden agendas resulting in disaster later on has been clearly visible in Sri Lanka’s recent history with China.

Based on the approach of China, they said, they suspect that the Sri Lankan Government has already made secret deals with China to sell the fertile agricultural lands and the seas in the North and East to China.

By Sulochana Ramiah Mohan

SLPP backs devolution for economic growth, not ethnicity, religion

The ruling Sri Lanka Podujana Peramuna (SLPP) noted that it, as a party, is pro-devolution, but that power should be devolved to the people for the economic development of their locales, and not for the purpose of, nor based on, their ethnicity or religion.

Speaking to The Morning, SLPP General Secretary MP Sagara Kariyawasam emphasised yesterday (29) that his party has always been pro-devolution, but that the said devolution should be provided for development, and not for ethnicity or religion-based purposes.

“We have always been a party that is pro-devolution. What we say is that devolution should be given to the people for their development. The units have to be identified not based on their ethnicity or their religion, but based on the economic development of their areas,” he added.

When queried by The Morning as to whether his party would support 13-plus (a reference to going beyond the 13th Amendment to the Constitution in terms of the devolution of power) as agreed to by MP Mahinda Rajapaksa in Parliament last week, Kariyawasam noted: “If President Ranil Wickremesinghe invites us, we will certainly be participating. Former President Rajapaksa is the party leader. He will not say anything against the party’s stance.

“The party has still not met on this. We have to meet on this and have a discussion once we receive an invitation from the President. As a party, our stance has been even when we were in the Sri Lanka Freedom Party, to support devolution. We are the party that has always said that devolution should carry forward until the lowest unit. Devolution should be there and it should go to the grassroots level, not to a particular ethnic or religious group. We have been very clear about that right from the beginning.”

Kariyawasam also said that each Local Authority consists of small electoral units and that power should be given even to such units.

“If somebody is trying to devolve power based on the language that they speak or the religion that they practice, that is something that has never been done anywhere in the world. Such may lead to economic or social development, but will alos create more problems,” he added.

When queried regarding the SLPP’s stance on the Police and land powers being devolved under the already existing 13th Amendment to the Constitution, he added: “That has to be discussed very deeply. The situation varies. Earlier, we were a country where a separatist group waged war against the Government to divide the country. In such a situation, it cannot be condoned. But currently, we have to assess and analyse the present situation in order to make a decision.”

Meanwhile, the Tamil National Alliance and certain other Tamil political parties aligned with similar political ideas had taken up the stance that a federalism-based solution to the national ethnic issue would be suitable through a new Constitution.

Accordingly, President Wickremesinghe last week invited all political parties in the Parliament for discussions to solve the ethnic issue following the Budget.

How the economic crisis has hurt the Hill Tamils

Meera Srinivasan in Sri Lanka and Kanishkaa Balachandran in Bengaluru have put together a video report for The Hindu on the plight of the Malayaha Tamils or Hill Country Tamils who work on the tea plantations of Central Sri Lanka.

As the poorest community in Sri Lanka, these workers of Indian origin have had to put up with harsh deprivations during the COVID-19 pandemic and the economic crisis that followed.

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Two FRs from PAFFREL over delays in polls

The People’s Action for Free and Fair Elections (PAFFREL), a polls monitor, will file two Fundamental Rights (FR) petitions at the Supreme Court (SC) against the relevant authorities for not holding the Provincial Council (PC) elections, and for not declaring the Local Government (LG) election within the required timeframe.

Speaking to The Morning on Tuesday (29), PAFFREL Executive Director Rohana Hettiarachchi noted that the fundamental rights of the people are being infringed when both the said elections are not held or declared within the required time period.

“When it comes to the LG election, it seems like it will not be declared on time, while the PC elections have not been held for the past three years now. Therefore, we have decided to take legal action within the next two weeks,” he added.

He further noted that even though the United National Front-led “yahapalana” (good governance) Government initially brought about an amendment on the women’s quota for nomination with a two-page document, when the Bill reached the second reading stage, it had increased up to 32 pages, with a completely new electoral system that the Delimitation Commission had to complete, which, however, it did not. Even the relevant Minister at that time did not agree with these delimitation-based amendments.

“The current Government led by President Ranil Wickremesinghe is the third government that came to power after the ‘yahapalana’ Government. So far, all of the politicians have failed to proceed with the PC elections. They had to complete the delimitation and reverse the previous electoral system. That is why we have decided to file a FR petition for the PCs elections as well. There is evidently no preparation and intention to hold elections. Some PCs’ terms expired five years ago, while others expired three years ago. There are no elected representatives; they are operated by the President’s representatives,” he added.

Meanwhile, PAFFREL wrote to the Election Commission (EC) on Monday (28 November) claiming that it is unnecessary to seek the Attorney General’s (AG) opinion with regard to whether the EC can declare the conduct of the LG poll following the enactment of the 21st Amendment to the Constitution which holds that the EC should be reconstituted, but also provides for transitional provisions to be operative in the interim period, and pointed out that EC Chairmen in the past have held elections in such interim and transitional periods. Hettiarachchi queried as to why incumbent EC Chairman Nimal Punchihewa cannot hold elections when former EC Chairmen Dayananda Dissanayake and Mahinda Deshapriya had held major elections in the past during such periods.

Also, the EC stated on Tuesday that while it had received the legal advice sought from the AG’s Department on whether it has the power to declare the LG election following the adoption of the 21st Amendment to the Constitution, it is however not in a position to reveal the advice received, noting that a decision will be taken following internal discussions. Speaking to The Morning, Punchihewa emphasised that although the EC had sought advice from the AG’s Department, the advice received cannot be revealed even under the Right to Information Act, while adding that the EC would hold internal discussions to make the relevant decisions.

He also told The Morning earlier that a declaration regarding the date of the LG election will be made by the EC, in early next year (2023). He noted: “Our expectation is to hold the LG election before 20 March 2023.”