Author: TELO Admin

The sharpest depreciation of the rupee following the free float of the currency ignited across the board prices hike with cost likely to soar further if Ceylon Petroleum Corporation revises upwards its pricing whilst the Central Bank said spikes are temporary and its recent moves will usher longer-term benefits and stability.

Of the announced hikes, most centred around food on the basis that producers will incur higher prices on account of imported flour and other ingredients would be costlier following the near 30% depreciation of the rupee.

Forex markets and the private sector saw continued uncertainty as at interbank level the US Dollar was quoted at between Rs. 260 and Rs. 280. Dealers said the highest-level transactions were done at Rs. 265. However CBSL continued to quote Telegraphic Transfer rates at Rs. 249.96 (buying) and Rs. 259.99 (Selling).

Prima said that One kilogram of Wheat Flour was increased by a price between Rs. 35 to Rs. 45 whilst the other producer Serendib increased it by Rs. 35.

The All Ceylon Bakery Owners’ Association said the price of a loaf of bread has been increased by between Rs. 20-30 and a loaf would cost between Rs. 110 and Rs. 130. The price of a sweet bun has been increased by Rs. 10.

The All Ceylon Restaurant Owners’ Association said the price of a rice packet has been increased by Rs. 20; Kottu by Rs. 10 and Short Eats by Rs. 5.

Separately the Civil Aviation Authority said the price of airline tickets has increased by 27%

The Ceylon Cellular Vendors Association said due to the increase of the dollar, the price of phones and accessories will be increased by 30%.

The hikes are coming as inflation hit a record 16.8% in January with food prices up 25%.

Prices are likely to go up further as State-owned Ceylon Petroleum Corporation (CPC) under growing pressure to adjust its prices upward following global spikes. Lanka IOC revised its prices citing devaluation as well as rise in global prices. It increased diesel by Rs. 75 per litre and petrol by Rs. 50 per litre. Though losing Rs. 1,201 per litre of diesel, the CPC has avoided increases despite LIOC implementing two revisions within a month.

Even without CPC hike, three-wheelers drivers are demanding that the base fare for the first kilometre must be Rs. 80 up from Rs. 60 implemented in early this year.

Under flak from the Opposition and economists for sheer mismanagement and late decisions, Central Bank Governor Nivard Cabraal took to video and CBSL Facebook to reassure markets and the public.

“We are aware of the implications of these moves. It will be short term and greater stability will ensure long-term benefits to all,” he said.

Cabraal said that recent policy rates hike and allowing flexibility of the exchange rate (depreciation) were made in ensuring economic and financial system stability which are core responsibility of the CBSL. “These decisions are not avoidable,” he said in discharging CBSL’s duties.

Stressing that a flexible exchange regime will boost foreign exchange inflows thereby help stabilise the economy, Governor however stressed that “CBSL stands ready to meet any challenges post devaluation.”

Difficult and challenging times. Maintaining macroeconomic stability is an arduous task. CBSL initiated a host of measures amidst the COVID pandemic to cushion the impact. He said that the Russia-Ukraine war posed the biggest setback globally. In that context CBSL had to opt for new tools to ensure macroeconomic stability. They included hiking interest rates and introducing flexibility for the exchange rate.

CBSL Head of Economic Research Anil Perera said a managed exchange rate since the pandemic helped the country to mitigate the impact of global and local shocks to the economy. However support extended to the economy and the public by way CBSL actions needed to be relaxed to ensure greater stability and sustainability.

He said that reforms were required especially since the outbreak of the Russia-Ukraine war and resultant spike in oil prices. He said depreciation will cause short term challenges such as rise in prices but expected stability in the currency will help.

“Foreign inflows will increase and exchange rate flexibility will boost exports whilst discouraging imports,” Perera said, adding that the CBSL will closely monitor the behaviour of forex markets and take appropriate action to ensure further stability if necessary.

Amidst rising reports that a national government was being discussed between the Rajapaksa brothers and UNP Leader Ranil Wickremesinghe which would see President Gotabaya Rajapaksa as head of state and Wickremesinghe as the new Prime Minister, Prime Minister Mahinda Rajapaksa yesterday firmly denied these reports saying such a matter was not discussed with the UNP.

In a meeting with some senior journalists at Temple Trees, Prime Minister Rajapaksa said that while Wickremesinghe and he were very good friends, their policies and political ideologies were different hence they could not work together in a joint government. Rajapaksa who was however of praise for Wickremesinghe also said that a national government, amidst the present crises, was not being discussed with any political parties and the government would resolve all the issues soon.

The Daily Mirror learns that proposals and recommendations by all political parties to address the present issues, will be discussed at an All Party Conference chaired by President Gotabaya Rajapaksa and Mahinda Rajapaksa, when they meet on March 23 at 10 pm.

All political party members have been told to attend the conference, where several issues will be discussed. Meanwhile. when questioned as to why he made a statement last week stating that the fuel shortage was artificially created, Prime Minister Rajapaksa said that at a time when former minister Udaya Gammanpila had made a public statement saying there was fuel to last only 4 days in the country, the Prime Minister had immediately telephoned the Chairman of the Ceylon Petroleum Corporation who informed him that ships with fuel had already docked at the Colombo Port.

The CPC Chairman had also informed the Prime Minister that they had the necessary funds to purchase the fuel and it was surprising that Gammanpila had made such a statement. However Gammanpila’s statement had caused panic among the public and excess buying which led to an immediate shortage at the fuel stations. He said this could have been avoided.

The Prime Minister further at the meeting yesterday said that the forex crisis was being looked into and soon the power and fuel crisis would also be resolved.

A large meeting will be held soon in Vatican City with the participation of His Holiness Pope Francis, Archbishop of Colombo His Eminence Malcolm Cardinal Ranjith, and Sri Lankans living in European countries, where bringing justice to the victims of the Easter Sunday terror attacks of 21 April 2019 will be discussed.

Well-placed sources who spoke to The Morning yesterday (6) said that this meeting would not take place during the Archbishop’s ongoing visit to Vatican City, but will probably be scheduled after April and that Sri Lankans of all faiths in Italy and nearby countries are expected to attend the meeting.

“During the Cardinal’s recent visit to the Vatican, a group of Sri Lankans there had organised a discussion, but he did not attend. Instead, he plans to meet Sri Lankans with the Pope in the near future. The exact date of the meeting is yet to be determined, but it would most likely be after April,” the sources said.

The Colombo Archbishop met with Pope Francis on 28 February at the Vatican, and the Easter Sunday terror attacks and related investigations were discussed during the said meeting.

“We have exhausted all options within Sri Lanka to find justice. Now we are discussing all avenues through which we can find justice internationally. Our last remaining solution was to seek assistance from the international community. This is not because we do not love our country. The Archbishop is meeting the Pope after two years and he is especially focusing on informing him that we need help from the international community to seek justice for the victims of the Easter Sunday terror attacks,” National Catholic Social Communication Centre Director Rev. Cyril Gamini Fernando said at a press conference held on the same day.

Following the meeting with the Pope, Cardinal Ranjith met United Nations (UN) High Commissioner for Human Rights Michelle Bachelet in Geneva, Switzerland and discussed revealing the truth behind the Easter Sunday terror attacks and bringing justice to the victims on 2 March in an approximately 45-minute discussion.

“As we have informed earlier, we have tried all possible options to reveal the truth behind the Easter Sunday terror attacks and failing that, we have gone to the international community to request help from them to reveal the truth. Therefore, as a first step, the Archbishop met with the Pope and told him all about the attacks. He requested him to mediate in order to get the truth revealed. As a second step, the Archbishop met Bachelet and held discussions on revealing the truth behind the terror attacks and bringing justice to the victims,” Colombo Archdiocese Auxiliary Bishop Rev. J.D. Anthony said in a statement issued on 2 March.

Claiming that all attempts made by the Catholic church to obtain justice for Easter Sunday terror attacks within the country have failed, Cardinal Ranjith last month said that they were currently exploring the possibilities to reach out to the international community, including the UN, seeking justice for the said terror attacks.

Pointing out that they, as the Catholic church, have links all over the world, the Archbishop said that they would also try to influence some pertinent and powerful countries that are in contact with the church. In addition, he said that in case they would be reaching out to the international community, such efforts would also be supported by his fellow cardinals around the world.

On 21 April 2019, Easter Sunday, three churches (St. Sebastian’s Church in Katuwapitiya, St. Anthony’s Church in Kochchikade, and Zion Church in Batticaloa) and three luxury hotels in Colombo (Cinnamon Grand Colombo, The Kingsbury Colombo, and Shangri-La Colombo) were targeted in a series of co-ordinated suicide bombings. Later that day, another two bomb explosions took place at a house in Dematagoda and the Tropical Inn Lodge in Dehiwala. A total of 269 people excluding the bombers were killed in the bombings, including about 45 foreign nationals, while at least 500 were injured.

The ‘interactive dialogue’ on Sri Lanka at the Human Rights Council in Geneva will end on Monday and the focus will then shift to its sessions in September when a new resolution is likely.

Monday’s continuation for less than an hour is the result of the Council making provision for an urgent debate on the Russian invasion of Ukraine.

UN Human Rights High Commissioner Michele Bachelet, who commented on her report on Sri Lanka that was released earlier, said “the past year has seen further obstruction and setbacks to accountability. Victims and their families continue to be denied truth and justice.”

The session on Sri Lanka was delayed and resultantly shortened. It was the because of the Council conducting an urgent debate on the situation in Ukraine.

Foreign Minister, G.L. Peiris, made a scathing attack saying that

the “so called evidence gathering mechanism” is deeply flawed procedure and unacceptable. He said that the Report on Sri Lanka is “intolerably intrusive character, impinging as it does no core functions and responsibilities of organs of Sri Lankan state, overwhelmingly mandated by the people at successive elections.”

In making those highly critical remarks, Foreign Minister Peiris has overlooked the fact that the Human Rights High Commissioner is only carrying out a mandate given to her by the Human Rights Council.

Diplomats from countries friendly with Sri Lanka said that the opportunity could have been better used to brief member, observer countries and NGOs who are drivers of the action against Sri Lanka. “This approach will make it difficult to help Sri Lanka. For instance, the EU countries awaited a briefing on amendments to the Prevention of Terrorism Act (PTA) with the future of GSP plus hanging in the balance,” said one diplomat.

A statement on behalf of the core group was made by Rita French, United Kingdom’s Global Ambassador for Human Rights and Deputy Permanent Representative to the United Nations. She expressed concern that surveillance and intimidation of civil society members and journalists continues.

The core group is made up of Canada, Germany, North Montenegro, Malawi, Montenegro, United Kingdom, and the United States.

India tells Lanka: Address “legitimate aspirations of Tamils”

India’s Permanent Representative to the United Nations in Geneva this week called on Sri Lanka to address the “legitimate aspirations of the Tamil community” in Sri Lanka.

The envoy, Indra Mani Pandey, did not elaborate what they were, except to say they included carrying forward the process of reconciliation and implementing the 13th Amendment to the Constitution.

“India believes it is in Sri Lanka’s own interest that the expectations of Tamils in Sri Lanka for equality, justice, peace and dignity, within a united Sri Lanka are fulfilled,” Mr. Pandey added.

The Indian delegation supported the UN High Commissioner’s report saying; “The report raises important concerns on promoting, reconciliation, accountability, and human rights in Sri Lanka”. India also called for early Provincial Council elections in Sri Lanka.