EU GSP+ Monitoring Mission concludes visit to Sri Lanka

A team of senior European Union (EU) officials who was in Sri Lanka to review Sri Lanka’s progress in implementing the 27 international conventions applicable under the Generalised System of Preferences Plus (GSP+), concluded the visit today.

These conventions, ratified by Sri Lanka, cover human and labour rights, environment and climate, as well as good governance principles. Over the course of ten days, the officials held wide-ranging meetings with representatives of the government, including President Gotabaya Rajapaksa, Foreign Minister Prof. G.L. Peiris, Justice Minister Ali Sabry, and Finance Minister Basil Rajapaksa. The officials also met with the opposition, civil society including human rights defenders, trade unions and employers. They had exchanges with EU Member States Ambassadors and UN agencies.

The monitoring mission addressed issues impacting human rights and the rule of law, economic, social, and cultural rights, and labour relations. The visiting officials discussed the Prevention of Terrorism Act (PTA), recalling that the amendment of the PTA was a key commitment in readmitting Sri Lanka to the GSP+ scheme in 2017. There was a significant focus on non-discrimination, the respect for the rights of all communities in Sri Lanka, the ongoing use of the PTA, impediments to the exercise of fundamental freedoms, and the development of draft legislation on Non-Governmental Organisations. The meetings also reviewed drugs policy, environment and climate change, as well as corruption. The utilisation and future development of the GSP+ scheme was the topic of a webinar organised by the European Chamber of Commerce in Sri Lanka, with the participation of EU representatives.

EU Ambassador Denis Chaibi said, “The effective implementation of international commitments forms the basis of Sri Lanka’s privileged access to the EU market. We have been working together with the Sri Lankan Government since 2015 to advance the issues of concern and welcome the continued engagement. The monitoring and engagement with the Government of Sri Lanka will be the subject of regular reports to the European Parliament and the Council of Ministers.”

The EU’s GSP+ scheme is a unilateral trade tool that removes import duties from products coming into the EU from lower middle-income countries, supporting sustainable development.

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Don’t blame only plantation workers – TPA Leader Mano Ganesan

The Tamil Progressive Alliance (TPA) Leader Mano Ganesan said that the Estate Managers’ Association of Sri Lanka has condemned the attack on estate officials and have warned that they would refrain from estate administration. He said that their concern and condemnation are justified and the TPA does not condone such attacks.

He, however, said that the reason for the attack on the estate officials is the frustration of the workers. “Their livelihood avenues have all collapsed like never before in history. But without fixing these and revamping the crumbling plantation sector, the blame should not be placed only on these frustrated workers,” the TPA leader added.

MP Ganesan, however, questioned why the Government’s attention has yet not been focused on the problems of declining incomes of workers and plantation companies, the frustration of workers and the decline of the plantation industry.

“Why has not the Ceylon Workers Congress, the Government’s plantation partners, understood the gravity of the situation? I am astonished by this silence. I don’t understand if this silence is a deceitful ploy to hide the Government’s inability to rectify this situation,” MP Mano Ganesan said.

The MP said that this situation has arisen due to the worst decline in the livelihoods of plantation workers in recent history.

“All the activities we initiated, including the construction of houses on estates, have come to a standstill. They are conducting opening ceremonies to the housing constructions we commenced. The living conditions of the families of the estate workers are at a deplorable condition like never before. The main reason for this is the collapse of the plantation industry,” the MP said.

He said that the promised wages are not paid to the estate workers as the management companies claim they do not have enough income. “Then what is the solution? The wage issue has been entrusted to the judiciary and all are asleep,” he added.

MP Ganesan said that the income of the people living on estates should be increased. He suggested that estate workers should be given the right to engage in alternative employment. “Opportunities should be provided for animal husbandry and vegetable farming. The Government should provide assistance for these,” he said.

Will not allow Sri Lanka to be used to imperil India’s security, President assures

President Gotabaya Rajapaksa has told Indian Foreign Secretary Harsh Vardhan Shringla that people in the two countries should be properly apprised regarding the decisions taken by the two sides in reaching an agreement.

The President emphasized the need to act with the consent of the majority of the people by explaining the advantages and disadvantages.

The President made these remarks when he met with the Indian Foreign Secretary at the Presidential Secretariat, today (October 05).

He elaborated on the need to re-establish the friendship and relations between India and Sri Lanka that existed in the 1960s and 1970s. The head of state said that he is expecting to obtain India’s support in advancing the 1971 proposal made by Prime Minister Sirimavo Bandaranaike to declare the Indian Ocean a peace zone.

Both sides were of the view that short and long-term steps that should be taken to bring relations between the two countries to a higher level should be correctly identified.

President Rajapaksa pointed out that the long-standing problems faced by the fishermen of the two countries could be resolved by identifying immediate solutions to the existing problems and providing the benefits rightfully owed by the fishing community. Explaining the trade imbalances between the two countries, the President stressed the need of providing speedy solutions in this regard.

Recalling his experiences in liberating the Jaffna Fort, the President stated that he is well aware about the consequences of a war including the missing persons as well as regarding the widowhood caused by the war.

President Rajapaksa pointed out the urgent need to understand the weaknesses as well as the strengths of the 13th Amendment and act accordingly. He told Indian Foreign Secretary Harsh Vardhan Shringla that he wishes to create a conducive environment for the Tamils, who left Sri Lanka, to return to the country, adding that he had openly invited the Tamil Diaspora and Tamils living abroad at the UN General Assembly to contribute their support in making the government’s efforts in this regard a success.

Explaining the steps taken by his government for the development of the North and the East in the recent past, President Rajapaksa said more than 90% of the lands acquired during the war for security purposes have been released by now and the families of the missing persons are being compensated. The President explained the need to expedite the resolution of other issues that have arisen during the war.

President Rajapaksa emphasized that Sri Lanka would not be allowed to be used for any activity that could pose a threat to India’s security, since there is a clear understanding about the geographical location of the two countries.

The President explained the relationship with China in a comprehensive manner and informed the Indian Foreign Secretary not to have any doubts about it.

A comprehensive environment has been created for investment opportunities in Sri Lanka. The President said that Indian investors would also be openly invited to invest. The President said that the Minister in charge of the subject has been entrusted with the task of resolving the situation regarding the Trincomalee oil tanks in a manner that is beneficial to both countries.

The promotion of the tourism industry between the two countries was also discussed at length. The attention was also drawn toward further expanding the training opportunities available for the Sri Lankan Armed Forces personnel in India.

The attention was also paid on sharing electricity between the two countries after identifying the peak hours in the use of electricity.

The Indian Foreign Secretary commended Sri Lanka on the success of the COVID vaccination programme and praised the measures taken to control the spread of the virus. Welcoming the President’s in-depth explanation, the Foreign Secretary stated that the friendship between the two countries could be further strengthened since the two countries share similar views.

The President also informed the Foreign Secretary that he extends an invitation to the Indian Prime Minister to undertake a state visit to Sri Lanka.

Indian High Commissioner Gopal Baglay, Secretary to the President P. B. Jayasundera, Principal Advisor to the President Lalith Weeratunga and Foreign Secretary Admiral Prof. Jayanath Colombage attended the discussion.

India calls for devolution of powers in Sri Lanka

India has reiterated calls for the full implementation of the 13th Amendment to the Constitution, including the devolution of powers.

During his meetings in Colombo, the Foreign Secretary of India, Shri Harsh Vardhan Shringla had reiterated India’s position on the complete implementation of the provisions under the 13th Amendment to the Constitution, including devolution of powers and the holding of Provincial Council elections at the earliest.

Shringla was in Sri Lanka on a 3-day Official visit from 02-05 October 2021. This was his first visit to Sri Lanka in his current capacity.

During the visit, Foreign Secretary called on the President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa, Minister of Finance Basil Rajapaksa and the Minister of Foreign Affairs Prof. G.L. Peiris.

He also held meetings and discussions with the State Minister for Estate Housing and Community Infrastructure Jeevan Thondaman, Foreign Secretary Admiral (Retd) Prof. Jayanath Colombage and Defence Secretary General (Retd) G.D.H. Kamal Gunaratne.

“During his meeting with the President on October 05, 2021, Foreign Secretary underscored the importance India attaches to expeditiously taking forward mutually beneficial projects, including proposals to enhance air and sea connectivity between India and Sri Lanka. Foreign Secretary thanked President for his guidance and close cooperation in the defence and security sphere. Further, he reiterated India’s position on complete implementation of the provisions under the 13th Amendment to the Constitution, including devolution of powers and the holding of Provincial Council elections at the earliest,” the Indian High Commission in Sri Lanka said in a statement today.

In his meeting with the Prime Minister held on October 04, 2021, Foreign Secretary mentioned that India-Sri Lanka relations are underpinned by vibrant people-to-people ties which would be further strengthened with signing of the Inter-Governmental MoU for the USD 15 million Buddhism grant.

The meeting with the Minister of Finance focussed on the strong economic and commercial relations between India and Sri Lanka. In this connection, both sides agreed to make progress on joint projects, including those under the loan and grant assistance extended by India.

The Foreign Secretary held wide-ranging and comprehensive discussions with the Minister of Foreign Affairs and the Foreign Secretary on all areas of mutual interest, including on the need to face the challenges posed by the Covid-19 pandemic together to mitigate its economic impact.

The Foreign Secretary also held meetings with the Tamil National Alliance (TNA) delegation led by Member of Parliament and Leader of the TNA R. Sampanthan, a Tamil Progressive Alliance (TPA) delegation led by Member of Parliament Mano Ganesan and a Ceylon Workers Congress (CWC) delegation led by State Minister for Estate Housing and Community Infrastructure Jeevan Thondaman.

“The Foreign Secretary reiterated India’s longstanding support for the reconciliation that addresses aspirations of the Tamil community for equality, justice, peace and dignity within the united Sri Lanka and in accordance with the 13th Amendment,” the Indian High Commission said.

The High Commission said that the extensive and warm discussions held during the Foreign Secretary’s meetings with all interlocutors and the joint inauguration of development cooperation projects will impart further impetus to the close, friendly and mutually beneficial ties between India and Sri Lanka.

Ferry service between Karaikal and Jaffna awaiting clearance to set sail

The ferry service proposed between the ports of Karaikal in the Union territory of Puducherry and Jaffna in Sri Lanka is awaiting clearance from the Indian Ministry of External Affairs to take off, Puducherry Lt Governor Tamilisai Soundararajan said on Tuesday

Shortly after flagging off Samudra Naukayan, an ocean sailing expedition by NCC naval wing cadets from Puducherry to Karaikal, she said shipping services between Karaikal and Jaffna were available in the past and were discontinued for various reasons, the New Indian Express reported.

The territorial government was pursuing the proposal to revive the service and the Sri Lankan Deputy High Commissioner and ministers had recently held discussions with the Puducherry administration in this regard. According to Puducherry Transport Minister Chandira Priyanga who interacted with the Sri Lankan ministers, Sri Lanka wanted the ferry service to one more port on the island nation’s east coast.

As part of efforts to promote tourism, the Ministry for Shipping had mooted the proposal to start the ferry service between Karaikal and Jaffna, covering a distance of 56 nautical miles (103.7 kilometres), in February 2021. Union minister of state for shipping Mansukh Mandaviya held a meeting with the Puducherry administration at the Chief Secretariat in this regard.

He said many Tamils from Sri Lanka come to India for religious purpose. Besides, Sinhalese people also desire to visit Buddhist places in India. The ferry service will facilitate their visit for spiritual purposes. It will not only give a boost to tourism, but also improve bilateral cooperation between India and Sri Lanka, he said.

The project would be on private-public-partnership (PPP) basis, where the operator would operate the service, Karaikal Port will be the facilitator and the state and central government would extend support, he had said.

To take the proposal forward, a committee under the Chief Secretary along with Secretary, Port, and other officials had been constituted. The committee went into the nitty gritty and presented a report to the shipping ministry. Now, various clearances, immigration, customs and no objection certificates by agencies are being obtained.

It is a major tourism project that is expected to help in the development of Karaikal and bring business and economic development to Puducherry.

Earlier, after flagging off the ocean sailing expedition by NCC cadets at the Puducherry Port, she said it was part of an effort to infuse in the youth the spirit of courage and capability to tide over all challenges.

The expedition would be for 11 days between Puducherry and Karaikal, adding that the team had 60 cadets including 25 girls. The expedition would sail from Puducherry to Karaikal through Cuddalore, Parangipettai and Poompuhar. On each leg of journey, six cadets and one instructor will be sailing in non-motorized boats also called DK Whaler harnessing wing force. On the return leg, they would sail along the same route up to Kalapet and the expedition would culminate at Thengaithittu Harbour thus travelling a total distance of 302 km. The cadets underwent extensive training in rowing and sailing techniques before starting the journey. During the expedition, the team would undertake social service activities such as pollution awareness drives, coastal clean-ups, sapling plantation and adventure related activities including kayaking.

She said that the territorial government was ramping up facilities in hospitals to ensure that patients with complaints of dengue were taken care of without delay. The Lt Governor appealed to the people to maintain cleanliness at homes.

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SC Directs AG And Prisons Commissioner To Ensure The Safety Of 08 Prisoners Who Have Filed FR Petitions Against Lohan

The Supreme Court has directed the Attorney General to instruct the Commissioner General of Prisons and the Superintendent of Prisons in Anuradhapura to ensure the safety of the eight prisoners who have filed a Fundamental Rights petition against State Minister Lohan Ratwatte.

The Supreme Court has also directed the Attorney General to instruct the Commissioner General of Prisons and the Superintendent of Prisons of Anuradhapura to provide the necessary access for their lawyers to meet the relevant prisoners.

The SC made the order after considering the FR petition filed by eight suspects detained at the Anuradhapura Prison by their lawyer alleging that Lohan Ratwatte had entered the Anuradhapura Prison and threatened a detainee with a pistol.

The petitions were filed today before Chief Justice Jayantha Jayasuriya, Murdu Fernando and S. The case was taken up before a three-judge bench comprising Justices Thurairajah.

The petitioner further requests that an order be issued to release him on bail and finally release him from all charges.

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PSC agrees to present the Registration of Electors (Amendment) Bill to Parliament

The Parliamentary Select Committee (PSC) to consider the government business presented to Parliament by the public institutions that do not come under the preview of the existing Ministries agreed to present the Registration of Electors (Amendment) Bill to Parliament.

The PSC chaired by the Prime Minister Mahinda Rajapaksa agreed on presenting the bill on the 6th October when they met under the leadership of Minister of Highways and Chief Government Whip Johnston Fernando Tuesday (05).

In particular, under the Registration of Electors Act No. 44 of 1980, voters are registered on the first day of June of each year at the age of 18 years. However, young people who have their birthdays after the said date will have the right to vote in the elections to be held after May 31 next year.

Therefore, this amendment is being made to give the opportunity to those who have attained the age of 18 years in order to cast their votes expeditiously.

The Extraordinary Gazette Notification on this regard was issued on 13th March 2021. Accordingly, this (Amendment) Bill is due to be presented to Parliament on the 6th.

Ministers (Prof.) G. L. Peiris and M.U. M. Ali Sabry, the Chief Opposition Whip, Member of Parliament Lakshman Kiriella attended this meeting.

Reveal who really owns Rosetti Ltd in Jersey Island: Vijitha

The National People’s’ Power (NPP) MP Vijitha Herath today urged the Government to reveal the actual owner of the Rosetti Ltd., the Company which was set up by former parliamentarian Nirupama Rajapaksa and her husband Thirukumar Nadesan in the Jersey Island as exposed by the Pandora papers.

He told Parliament that the Government could not keep quiet on the incident claiming that it was a personal account and that the Government has a responsibility to educate the people on this matter.

He said the Government should reveal who had the official registration of Rosetti Ltd. and whether the bank account connected to it was under the name of Nirupama Rajapaksa or Thirukumar Nadesan or if it was a joint-account.

“According to Pandora Papers, the account was opened in 1991. The Money laundering Act was enacted in Sri Lanka in 2006. It should be revealed whether money had been channelled to this account after the Money laundering Act was enacted. How much money has been channelled and how the money has been channeled,” he said.

The MP said several individuals such as Vidya Amarapala were listed in such papers for similar incidents and said this was the first time where a politician was listed in an incident of this nature.

“The previous Government did not take any action when Vidya Amarapala’s name was revealed. He fled to Australia and the incident went uninvestigated thereafter,” he said.

He said the Government should reveal its stance whether action would be taken against the culprits under Money Laundering Act, if money had been channeled to the particular account after 2006.

Sri Lanka reports 40 Covid-19 deaths on Tuesday, toll rises to 13,142

Sri Lanka Tuesday reported 40 deaths due to COVID-19 after the figures were confirmed by the Director General of Health Services on Monday, October 04.

Among the deaths reported today, 22 are of males and 18 of females. The majority of deaths – 36- are of elderly people in the 60 years and above age group.

According to the data reported by the Government Information Department, the total deaths due to Covid-19 since the pandemic began last year has now risen to 13,142.

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Sri Lanka prints Rs106.7bn rupees to fully sterilize interventions, SRR hike effect

Sri Lanka has printed 106.7 billion rupees to fully sterilize liquidity shortages that emerged in the banking system in September from a statutory reserve hike and foreign reserve losses, data show.

On October 04, the central bank’s Treasury bills tock rose to 1,442.7 billion rupees from 1,336 billion rupees.

The central bank withdrew about 150 billion rupees from the banking system through a statutory reserve ratio hike on September 01 and subsequently also intervened in forex markets to lose foreign reserves.

From August 30, 227.6 billion rupees had been printed through outright purchase of Treasury bills and bonds and another 103.5 billion rupees was printed through a term reverse repo auction.

Sri Lanka’s newly re-appointed central bank Governor Nivard Cabraal had lifted a ceiling on yields which had led to failed bond and bill auctions and allowed rates to go up limiting money printing.

Sri Lanka has been printing large volumes of money and also buying bonds into its balance sheet, in a severe deterioration of rule based policy seen under ‘flexible’ inflation targeting and ‘flexible exchange rate’ since 2015.

The central bank jettisoned a ‘bills only’ and started buying up bonds into its balance sheet with printed money even taxes were raised and then started buying bonds from failed auctions, which is against section 112 of its Constitution.

“Provided, however, that except in the case of treasury Bills, for which the Central Bank may make direct tenders, the bank shall
not subscribe to any issue of such securities or agree to purchase the unsubscribed portion of any such issue,” the MLA says.

Sri Lanka’s MLA is however a has enough provisions according which can be used to print money trigger forex shortages destroy the currency, though originally the intention was that there would be no direct government financing except through the 180 day provisional advances.

Until money printing began after the setting up of the central bank, Sri Lanka had an East Asia style currency board which had kept the currency stable through two World Wars and a Great Depression.

While excessively large liquidity shortages may not be required analysts say, higher rates and some liquidity shortages are required to stop a complete collapse of the rupee.

However foreign exchange shortages persists and the latest injection had reduced a liquidity short to 9 billion rupees.

Sri Lanka’s forex reserves are low and the central bank is seeing reserve liabilities rise.

On Monday bond markets continued to limp back seeing some activity as more realistic rates are emerging.

A one year bond maturing on 01.10.2022 was quoted 7.40/8.00 percent.

A 15.11.2023 bond was quoted at 8.20/30 and also traded, dealers said.

A 15.09.2024 bond was quoted at 9.00/20 percent.

A 01.12.2024 bond was quoted at 9.00/30 percent.

A 01.08.2025 bond was quoted at 9.50/75 percent

A 15.10.2027 bond was quoted at 10.25/50 percent.