Now, another Maj. Gen. barred from entering US

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.

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Power Cuts from January 24th? CEB struggling for dollars to buy fuel from CPC

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 resigns

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.

Sri Lanka to sign Trincomalee oil tank farm deal with India in a month, says Minister

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

Sri Lanka shuts three foreign missions to save forex after printing money

Sri Lanka is closing one embassy and two consulates, to save foreign exchange, the Ministry of Foreign Affairs said as the country is facing forex shortages after an unprecedented bout of money printing.

The High Commission of Sri Lanka in Abuja/Nigeria, Consulate General of Sri Lanka in Frankfurt/Germany, Consulate General of Sri Lanka in Nicosia/Cyprus will be temporarily closed.

“The restructuring is undertaken with a view to conserving the country’s much needed foreign reserves and minimising expenditure related to maintenance of Sri Lanka’s Missions / Posts overseas, while ensuring the effective conduct of bilateral relations, in the backdrop of the grave economic challenges posed by the global pandemic,” the Foreign Ministry said.

Sri Lanka is facing severe foreign exchange shortages after printing over 1.5 trillion rupees to keep interest rates down and finance deficits by crippling bond auctions with price controls, over the past two years.

Bond auctions are now working and money is now printed to sterilize partial interventions in the forex markets to provide convertibility to a 200 to the US dollar peg on which credibility has been lost.

The functions of Sri Lanka’s Consulate General in Frankfurt, including trade, investment and tourism promotion, and consular matters of Sri Lankan nationals living and working around Frankfurt, will be handled by Sri Lanka’s Embassy in Berlin, Germany.

“The concurrent accreditation of Cyprus through the Sri Lanka Embassy in Rome, Italy will continue, with the latter handling Sri Lanka’s bilateral relations with Cyprus as per current practice,” the statement said.

“The consular functions handled by the Consulate General in Nicosia will be brought under the purview of the Sri Lanka Embassy in Rome.

A suitably qualified Honorary Consul based in Nicosia will be appointed to help 6000 odd Sri Lanka workers in Cyprus.

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The letter to the Indian Prime Minister finalised –TELO Spokesman Surendran

The letter to the Prime Minister of India has been finalized and may be signed on the 29th, Tamil Eelam Liberation Organization (TELO) spokesperson Suren Surendran said.

The letter prepared by the party leaders of the Tamil and Muslim parties to be sent to the Prime Minister of India has been finalised. Arrangements are being made for the leaders to sign on December 29 in Colombo.

On the 21st, party leaders of the Tamil-Muslim people gathered at the Global Tower Hotel in Colombo for the purpose of finalising the final draft of the demands to be sent to the Prime Minister of India.

The draft submitted by the TNA who attended the meeting was also considered. As no major differences were found between the two drafts, it was agreed to include the contents of the draft submitted by the TNA.

The leaders finalised the draft of the letter together in a discussion that evening. The revised draft with the items agreed upon was submitted to me by the leaders the next day.

All leaders are committed to achieving this goal on Tuesday (21) and to work together with dedication and resilience in the face of the massive political threats facing the Tamil-speaking people. ”

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No request from Sri Lanka for IMF funding

The International Monetary Fund (IMF) says Sri Lanka has not made any request for financial support.

IMF’s Mission Chief for Sri Lanka Masahiro Nozaki told Daily Mirror in an email that a staff team from the IMF is scheduled to visit Colombo from December 7–20.

Responding to a question posed on the visit, the IMF Mission Chief said that the delegation will be in Colombo to conduct 2021 Article IV consultations with Sri Lanka.

Under Article IV of the IMF’s Articles of Agreement, the IMF holds regular bilateral discussions with all member countries to review economic developments and policies; following approval by IMF Management the IMF’s Executive Board discusses a Staff Report based on these discussions.

“The IMF has not received a request for financial support from Sri Lanka recently, but the staff stands ready to discuss options if requested,” Masahiro Nozaki said.

United National Party (UNP) leader Ranil Wickremesinghe was quoted as telling Parliament this week that Sri Lanka is bound to go for a dialogue with the IMF under section four of the UN Monetary and Financial Conference in December this year.

He had requested the Government to present the details of this dialogue to Parliament saying Parliament has the right to know details of the agreement to be reached.

Defence Ministry responds to reports on foreign vessel anchored off Batticaloa

The Ministry of Defence has rejected media reports and social media posts alleging that a vessel anchored off the coast of Batticaloa is engaged in mining activities and urged the public not to be misled by such false information.

Issuing a statement, the ministry denied the “false details” circulated and published on social media and certain other media regarding alleged mining in the seas off the coast of Batticaloa by a barge.

The Defence Ministry said the barge in question had been anchored off Batticaloa a few days ago due to an emergency following a fuel shortage during the ship’s expedition from UAE to Bangladesh.

The barge has been scheduled to sail to its destination after refueling from the local shipping agent, Victory Agencies in Trincomalee, it said.

Therefore, the general public is advised not to be misled by such false information, the Defence Ministry said.

Surprise over why Chinese embassy delivered dialysis machines through Sajith

The three-day visit to the North last week by the Chinese embassy delegation led by Ambassador Qi Zhenhong and its various engagements there raised some concerns in diplomatic circles in Colombo. These questions came as the Government is now engaged in finalising a USD 1.9 billion worth economic ‘package’ with India.

Days after the delegation returned to Colombo, the Chinese embassy said following a request from Opposition Leader Sajith Premadasa, it handed over a donation of eight lifesaving Kidney Dialysis Machines worth Rs. 20 million to needy hospitals in the Northern and Eastern provinces.

A Northern Province Health Ministry official said the embassy could have handed over those machines to the hospitals during their visit to the North or directly to the Health Ministry or even to the President or Prime Minister as they used to do in past but surprisingly it had to be coordinated through the Opposition Leader Sajith Premadasa’s office.

“Or maybe they wanted to send a message?” he asked.

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Foreign reserve crisis: $ 400 m Indian swap expected in Jan

The $ 400 million swap facility with India that has been in the pipeline for several months is expected to be received by the Sri Lankan Government during the second week of January 2022, The Sunday Morning learnt.

It is learnt that the long awaited facility would be received by Sri Lanka around 10 January 2022. The facility has been negotiated between officials from Sri Lanka and India since September this year.

Meanwhile, the Government is to receive $ 1.5 billion from China, and the facility is expected to reach state coffers this week, it is learnt.

A highly placed Government source told The Sunday Morning that the $ 1.5 billion facility from China would definitely reach Sri Lanka by the first week of January 2022 since it is now in the final documentation stage after finalising all necessary approvals from both sides.

“We will receive $ 1.5 billion from China and then the $ 400 million swap with India by 10 January 2022. The $ 500 million line of credit from India for fuel will also come in January 2022,” the source explained, adding that the Government of Sri Lanka (GoSL) and India were looking at expediting the $ 1 billion facility/credit line requested by Finance Minister Basil Rajapaksa during his recent visit to India.

“The Government will not default on its payments due in January 2022 and the foreign reserves situation will see positive improvements by next month (January),” the source further noted.

However, it is also learnt that the Indian Government is waiting for a positive signal from the Sri Lankan Government on the progress of Indian-funded projects in the island that are still in the pipeline.

Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal has expressed confidence in the country’s foreign reserves closing this year at $ 3 billion, and dispelling fears of a further depletion in the current reserves of $ 1.5 billion.

However, Cabraal has remained tight-lipped on the source of the expected foreign inflows.