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Former Prime Minister Ranil Wickremesinghe says that the US dollar shortage has resulted in a serious situation in the country and that it has reached a point where the people are no longer able to bear this burden.

He stated that businesses are collapsing, people are losing jobs, the middle class is deteriorating and the farmers are left stranded. “Solutions are urgently required for these,” he said, issuing a statement to the media today (28).

The UNP leader said that despite the Covid-19 pandemic, many countries have shown economic progress in the year 2021 and that Sri Lanka too should resolve its issues.

“Therefore the government has a responsibility to immediately go to the International Monetary Fund (IMF) and obtain aid or else it should present an acceptable alternative,” he stressed, while adding that “both those things have not happened.”

Wickremesinghe said that today the people of the country are in anger.

The UNP parliamentarian added that in addition to this the country is now having to face another problem, which is the food shortage that is going to occur in Sri Lanka.

He said that based on the information they are receiving a food shortage is likely to occur in the country around the time of the Sinhala and Tamil New Year. He said that many regions are reporting that this year’s harvest will be only around 60% of the harvest from the previous time.

The former PM warned against angering the general public which could have drastic impacts on the government as well as the parliament and therefore called for the prevention of such a situation in order to develop the country.

He sternly urged the government to immediately conclude its discussions and agreements with India to obtain fuel and food on credit.

Wickremesinghe said that obtaining loans or obtaining goods on loan will not resolve the country’s foreign exchange crisis. However, he urged the government to implement the process to obtain fuel and food on credit in order to at least get a temporary reprieve.

The US has categorised another senior military official, Maj. Gen. Udaya Perera, who was Sri Lanka’s Deputy High Commissioner in Malaysia (2009-2011) as a war crimes suspect.

The wartime Director of Operations, Perera, has been denied entry to the US recently although he has a five-year multiple entry visa issued in August 2019.

Well informed sources told The Island Maj. Gen. Perera had been informed of the US decision after he, along with his wife and his teenage son, on the night of 05 Dec., proceeded to the immigration counter to board the Colombo-Singapore Singapore Airline flight.

Maj. Gen. Udaya Perera has successfully followed top military courses in NDU (National Defence University in 2004) and USAWC (United States Army War College in 2012) and is a frequent traveller.

Having cleared the Perera family, the Singaporean Airline staff at the Bandaranaike International Airport (BIA) told him that they had received an alert from US authorities.

From Singapore, they were to fly to Los Angeles. Sources said that Maj. Perera stayed back while his wife and son went ahead with the planned visit. The General and his wife were to see their first granddaughter born in California.

Sources questioned the rationale behind the US move as Maj. Gen Perera, having retired in 2017 had received a multiple entry visa two years later. The Maj. Gen. had attended his daughter’s wedding; she got married to a naturalized US national from Kerala in Sept. 2019. Sources said that it was not clear what prompted the US action three years after the issuance of multiple entry visa and 12 years after the successful conclusion of the war.

The US made its move several weeks after inducting former Army Commander General Mahesh Senanayake into the United States Army Command and General Staff College (CGSC) International Hall of Fame at Fort Leavenworth. An alumnus of CGSC, Senanayake, who contested the 2019 presidential election has been conferred this honour in recognition of his “outstanding military leadership for the nation and commitment to preserving global peace. “

Sources said that about a week after blocking Maj. Gen. Perera, the US included two Sri Lankan military personnel in a list of officials prohibited to enter the US under Section 7031(c) of the Department of State, Foreign Operations, and Related Programmes Appropriation Act, 2021. The following is the relevant section of the U embassy statement:

• Chandana Hettiarachchi, a Sri Lankan naval intelligence officer, for his involvement in gross violations of human rights, namely, the flagrant denial of the right to liberty of at least eight “Trincomalee 11″ victims, from 2008 to 2009. Sunil Ratnayake, a former Staff Sergeant in the Sri Lanka Army, for his involvement in gross violations of human rights, namely the extrajudicial killings of at least eight Tamil villagers in December 2000. The designation of these two Sri Lankan individuals is not the only action we are taking in support of accountability for gross violations of human rights in Sri Lanka.”

However, the US embassy statement that dealt with the inclusion of two personnel conveniently refrained from making any reference to Maj. Gen. Udaya Perera.

Sources said that it was not clear whether the US has dealt with Maj. General Udaya Perera US under Section 7031(c) of the Department of State, Foreign Operations, and Related Programmes Appropriation Act, 2021.

This controversial law provides that in cases where there is credible information that officials of foreign governments have been involved in a gross violation of human rights or significant corruption, those individuals and their immediate family members are to be designated publicly or privately and are ineligible for entry into the United States.

In Feb. 2020, the US prohibited Army Commander General Shavendra Silva, who is also the Chief of Defence Staff (CDS) and his family from entering the US. In addition to them, Australia declined to allow Defence Secretary General Kamal Gunaratne and Maj. General Chagie Gallage from entering Australia. The US denied visa to Field Marshal Sarath Fonseka more than once.

The Island learns that Maj. Gen. Udaya Perera has written to the US embassy in Colombo in this regard.

The Ceylon Electricity Board warns that it is lurching towards serious power shortages in 2022 if it cannot secure dollars for the procurement of fuel for power plants in the country.

General Manager of the Ceylon Electricity Board M. R. Ranatunga speaking exclusively to News 1st said the CEB does not have an issue with regard to fuel stock until 24th January.

However, he said that if the CEB cannot source the funds to make payments to the Ceylon Petroleum Corporation, it will face a serious issue in power generation.

Over the past few weeks, the CEB has also been battling with several breakdowns that have impacted the prevailing power supply.

So far, it was the Ceylon Petroleum Corporation that stepped in for the Ceylon Electricity Board to import fuel and open the Letters of Credit.

However, the CPC has made it clear to the CEB that it cannot provide fuel on credit any further.

Chairman of the Ceylon Petroleum Corporation Sumith Wijesinghe told News 1st that the CEB is expected to pay Rs. 91 Billion to the CPC within two years.

He said that when crude oil prices slumped in the global market earlier, the funds that were saved were given to the CEB by the Treasury and Rs. 50 Billion was used by them to may payments, however, the debt burden has increased since then.

He noted that if the CPC is to issue fuel on credit to the CEB, the CPC must be in a position to obtain loans, however, given the present situation, it is impossible.

President’s Secretary Dr. P. B. Jayasundera has tendered his resignation, media reports said today.

Both The Morning and Daily Mirror reported that Jayasundera handed over his resignation letter to President Gotabaya Rajapaksa.

The President has reportedly accepted the letter of resignation.

It was also reported that Prime Minister’s Secretary, Gamini Senarath is expected to be appointed as the new Presidential Secretary.

Jayasundera has reportedly resigned after raising various concerns and issues.

Some Cabinet Ministers were also reportedly unhappy with Jayasundera and wanted him out.

After a year of visible strain in its ties with Colombo, New Delhi may finally have some reason for cheer. In a month’s time, Sri Lanka will ink the long-dragging deal with India to jointly develop the Trincomalee oil tank farms — a coveted project that has remained controversial for decades.

“We have been negotiating this for 16 months, and we are now very close to finalising the terms of the Trincomalee project with India. We hope to sign the agreement in a month,” Energy Minister Udaya Gammanpila told The Hindu on Sunday.

The Minister said he has instructed the Ceylon Petroleum Corporation (CPC) to form a subsidiary company, Trinco Petroleum Terminal Ltd., for the purpose. The move follows President Gotabaya Rajapaksa’s nod to setting up the special purpose vehicle ahead of the next Cabinet meeting. “We don’t have a Cabinet meeting this week because of the holidays. We will get the decision ratified in the next one,” Mr. Gammanpila said.

During the Second World War, the British built the Trincomalee oil tank farms to serve as a refuelling station, adjacent to the Trincomalee port, an enviable natural harbour. The nearly century-old oil tanks need to be refurbished — at the cost of millions of dollars — if they are to be fit for use again.

If the deal is finalised and signed next month, it will not only mark the culmination of India’s 16-month-long negotiation with the ruling Rajapaksa administration but will also give shape to a proposal envisaged 35 years ago, in the Indo-Lanka Accord. Despite the Accord — in its annexure — stating that “the work of restoring and operating the Trincomalee oil tank farm will be undertaken as a joint venture between India and Sri Lanka”, things barely moved until 2003, when the Indian Oil Corporation set up Lanka IOC, its Sri Lankan subsidiary.

The facility, interestingly located in ‘China Bay’, has 99 storage tanks with a capacity of 12,000 kilolitres each, spread across the Upper Tank Farm and the Lower Tank Farm, where LIOC currently runs 15 tanks. The new agreement being negotiated pertains to the remaining tanks.

The “early modernisation” of the Trincomalee oil tank farms found mention in the official statement released by the Sri Lankan mission in New Delhi, on Finance Minister Basil Rajapaksa’s visit in November, indicating the priority accorded to it. Mr. Basil, the youngest brother of President Gotabaya and Prime Minister Mahinda Rajapaksa, sought extensive economic assistance from New Delhi to help Sri Lanka tide over its economic crisis compounded by the pandemic.

Diplomatic sources indicated that New Delhi’s nod for the emergency Lines of Credit and currency swap requests from Colombo was contingent on the Rajapaksa administration moving forward on the Trincomalee deal.

However, dismissing the idea, Mr. Gammanpila said: “Some including the political opposition are suggesting that India’s economic assistance is tied to the Trincomalee deal. I vehemently deny that. We began negotiating this agreement well before the economic assistance was sought,” insisting “there is no connection whatsoever.”

It is nearly a month since Mr. Basil visited New Delhi, and the countries agreed to a “four-pronged approach” that would help Sri Lanka mitigate its current economic crisis. There is no official word on the assistance so far.

Source:The Hindu