Online registration for 2021 electoral register

The Election Commission has launched a program for the online application to register in the 2021 Electoral Roll.

Accordingly, information related to the new online registration process can be accessed by visiting the Election Commission website, www.election.gov.lk.

Registration of Sri Lankan citizens who have attained the age of 18 years who are eligible to be included in the 2021 Electoral Register, correction of mistakes or typographical errors in the names in the existing Electoral Register, change of residence, registration of voters unregistered in 2020 will be carried out under this program.

Any queries or issues regarding the process can be forwarded to the email address eservices@election.gov.lk, the Commission said.

Sri Lankan bishop attacks coal power plant

A Catholic bishop has criticized the largest power station in Sri Lanka for emitting carbon and causing environmental damage.

Bishop Valence Mendis of Chilaw said Lakvijaya Coal Power Plant in Norochcholai is causing health risks to residents.

“The toxic gas emitted from the plant has increased the risk of cancer and lung disease of people in the area,” said Bishop Mendis during his sermon on Aug. 1.

“Responsible people around the world say they have decided to phase out carbon emissions by 2050 because it is so poisonous to human life.”

The Catholic Church and environmentalists have urged the government to shut down the power plant and to generate electricity using alternative sources.

The plant was completed in 2014 by a Chinese company with the financial assistance of the Exim Bank of China.

It has been decided to stop the use of carbon in Sri Lanka in another nine years by 2030
Today, in addition to waste disposal, serious problems have arisen regarding the storage and condition of coal, the basic raw material required for the operation of the plant.

“It has been decided to stop the use of carbon in Sri Lanka in another nine years by 2030,” said Bishop Mendis.

“Global warming is also increasing due to the release of carbon into the universe.”

Farmers and fishermen in the area say they are facing serious health problems caused by the plant.

Bishop Mendis was speaking at St. Anne’s Church in Talawila, close to the power plant, in a service to mark the feast of St. Anne

Sadamali Niroshika, a Sunday school teacher from Chilaw, said that due to improper storage and disposal of coal, the air in villages near the plant contains coal dust and ash.

“People in the area face several serious health problems. A group of children living around the power plant have contracted skin diseases. Many other children living in the surrounding villages have skin problems and many adults suffer from health problems,” said Niroshika.

“The air and water are polluted when coal dust and waste ash are mixed into the environment.”

When the wind blows, the ash scatters like dust
An officer from the Electricity Board claimed that coal dust is everywhere in the surrounding area.

“When the wind blows, the ash scatters like dust. We now cover the entire area with sheets about 45 feet high,” said the officer who asked to remain anonymous.

“The ash is used in the manufacture of bricks and cement.”

Environmentalist Aruna Malcolm said harmful chemicals can cause cancer and lung, skin, kidney and heart diseases.

“Such conditions have already been reported around Norochcholai,” said Malcolm.

“Today, these plants are considered to be one of the major pollutants in the world. It is an outdated technology and has been phased out in many countries.”

Why are Teachers and Principals protesting?

Teachers and Principals have been protesting for almost 22 days all around the country, in an unprecedented show of force.

But why are they protesting? News 1st gives you an easy reference.

On the 12th of July, Fourteen trade unions representing teachers and principals went on strike despite calls from the government to give up their trade union action and continue with teaching activities.

The Trade Unions representing Teachers and Principals are making the following key demands :

01. Permanent solution to the perennial salary anomaly issue.

02. Immediate withdrawal of the Kotelawala Defence University Bill

03. Allocation of 6% of GDP for education

04. Permanent solutions to service issues faced by Principals and Teachers.

05. System for Extra-Curricular Activities attended by Teachers and Principals

How did the issue begin?

The Sri Lanka Teacher’s Service was established in 1994, with each grade bearing a salary similar to other sectors in the public administrative service.

Trade unions say the B.C. Perera Salaries Commission of 1997 and the Lionel Fernando and Saliya Mathew Salaries Commission of 2006 had recommended considering teaching as a separate service.

They pointed out that teachers had not received salary increments in 1997 when the salaries for other sectors had been hiked.

When the matter was referred to the court in 2008, the court had ordered teaching to be considered a separate service.

Trade unions say that the salary increments offered to teachers and principals are not equal to the salaries earned in other sectors.

They outline that the salary of a Grade-1 teacher should increase by about 29,000 rupees if the increments are to be made in line with other services in the public sector.

Under this government, education minister Professor G.L. Peiris had appointed a special committee and obtained recommendations on this matter. A cabinet-sub committee has also been appointed.

Trade Unions have rejected the appointment of the sub-committee noting that the appointment of sub-committees has been taking place for many years under every successive government, with no solution being granted to their issues.

The Prime Minister on 27th July said that a final decision on declaring the teachers’ service as a separate one within the Public Service, will be announced after Monday’s (02) cabinet meeting.

Posted in Uncategorized

Sri Lanka’s 213 billion rupee money printing to repay foreign debt: Treasury Secretary explains

Sri Lanka’s 213 billion rupees printing of money on July 26 (1005 million US dollars at 203 rupees) had flowed out of the country in a back-to-back transaction that depleted foreign reserves but did not cause domestic price inflation, Treasury Secretary Sajith Attygalle said.

The billion US dollar sovereign bond (which also had a coupon) was paid with central bank dollar (monetary) reserves.

He said a Treasury bill was issued to the central bank to get rupees.

“We paid 1000 million from reserves. That means the reserves of the central bank,”

“Then I have to take rupees from the central bank to get dollars. This is how it happens,” Attygalle said.

“Yes. The Treasury bill holdings of the central bank went up by that amount. But there is nothing that came out to the (banking) system.”

He said the money printed by the sale of Treasury bills to the central bank did not come into the banking system. If people were worried about (price) inflation it would not happen, Secretary Attygalle said.

The money printed to repay foreign loans does not cause domestic inflation because the money does not come into circulation.

“But that money does not get into circulation,” he said. “What is the problem with printing? Inflation goes up. Inflation goes up when the money comes into use.”

“For me to get dollars from the central bank I have to print money and give in rupees. That is what was done. As a result it (the printed money) did not come to money circulation.”

Inflating reserve money

Classical economists object to money printing (inflation of reserve money above the monetary anchor) as it causes reserve losses and foreign exchange shortages (rationing of dollars in a pegged regime), asset price inflation as well as (commodity) price inflation in an index which leads to rationing of goods, price controls and shortages.

When money is printed to repay foreign debt, there is an immediate loss of forex reserves.

However even if money is printed for domestic expenses such as state salaries (deficit finance), the cash will end up as forex reserve losses when state workers buy food or other imported goods, travel around or save money in bank which are loaned for investment projects which result in steel or other intermediate imports.

Through several rounds of credit including for government capital expenditure through state bank overdrafts, all the printed money will end up as reserve losses or a balance of payments deficit.

“Our economy was and is both small and open. Financing budget deficits through Central Bank credit creation appeared to us as an invitation to disaster,” Singapore’s first Finance Minister who kept a Colonial currency board rejecting Keynesian central banks has said.

“There was no effective way of exchange control in an open trading economy like ours to deal with the inevitable balance of payments troubles.”

“The Keynesian system is a closed one, that is, it takes no account of foreign trade.

This is admissible in theory, but in practice, since all modern states engage in foreign trade, a Keynesian stimulus will lead eventually to balance of payments deficits if government do not exercise restraint in time.”

Instead of the central bank, even if part of the Treasury bills were issued to the public and banks (and banks did not use window money to buy them) domestic credit and consumption would have been reduced and the central bank would not have had to lose a billion US dollars in reserves.

Treasury itself would have been able to buy some dollars in the market from the real money borrowed or taxed from the public or their savings in banks.

The central bank also would be able to recoup some of the losses, if it is able sell down the Treasury bills slow domestic credit and imports which would result in an excess of dollars inflows over outflows in subsequent weeks.

Defending a Treasury Bill yield vs Rupee

However it cannot be done since the central bank is defending a 5.26 percent ceiling Treasury bill yield in bill auctions at which new money is printed and the monetary base and excess liquidity is expanded. When excess liquidity is used, forex shortages are triggered.

Last week about six billion rupees were printed in this fashion after a failed bill auction.

In 1950 and 1951 around the time Sri Lanka’s Latin America style central bank was set up, the US Fed faced the same problem as the economy recovered strongly after the end of World War II.

Mercantilists and the popular financial media called it the ‘Korean War boom’ implying that the US was running budget deficits for defence. However budget deficits themselves cannot create external deficits or domestic inflation, unless they were re-finance with central bank credit.

What outsiders call the Korean War boom was actually caused by Fed purchases of Liberty Bonds (a US Treasury security issued to fund World War II) at a fixed rate at time the budget was in surplus, according to Governors of the Fed.

In 2018 Sri Lanka printed money despite taxes being raised under ‘flexible’ inflation targeting and sent the rupee careening down from 153 to 182 by denying convertibility to the new rupee through a ‘flexible’ exchange rate.

“There is going to be nothing for us to protect in this country unless we are willing to do what is necessary to protect the dollar,” Fed Governor Marriner Eccles who was a former chairman said in comments set out in the Fed minutes of February 6-8, 1951, which are now public.

“Our responsibility is not a minor one; it is a very great one under the conditions that exist, and if we fail, history will record that we were responsible, at least to a very great measure, in bringing about the destruction or defeat of the very system that our defense effort is being made to protect and defend.

“We are not in a war. We do not now have deficit financing.

“You only protect the public credit by maintaining confidence in the Government and in its securities and to the extent the public will buy and hold those securities. The thing we are doing is to make it possible for the public to convert Government securities into money and to expand the money supply of this country by $7 billion in six months.”

Over 2020 Sri Lanka’s central bank bought 650 billion rupees of government securities, by rejecting bids at auctions, some newly issued, others already held by banks and the public from past deficits, injecting rupee reserves to banks Liberty Bonds style of the Fed.

“That was not done for the purpose of carrying out our responsibilities, but for the purpose of trying to hold the interest-rate structure,” Governor Eccles said.

“It was due entirely to our efforts to carry out the demands or requests of the Treasury.”

“I, for one, feel that the issue has to be faced. When you think that we have bought $3-1/2 billions of Goverment securities since last May, during a time when the Government has had a budget surplus, which has been anti-inflationary, it is apparent that we have provided the means for the growth in the money supply, which has been directly related to the increase in cost of living and the price level.”

In Sri Lanka out of the 650 billion rupees printed in 2020 and two reserve ratio cuts, only a part went to fill a need of public currency holdings. The reset flowed out as a 2.3 billion US dollar balance of payments deficit. About 200 billion was left as excess liquidity by the first week of January.

By May a billion US dollar balance of payments deficit had consumed the excess as well as more money printed by defending the 12 – month bill yield.

In addition to rejected bond bids, central bank data showed that in fact 103 billion rupees had been injected via the 5.5 percent window by Friday. Almost a similar amount was however parked in the central bank by better managed banks which can be used for final clearing of transactions every day.

Inflation and Price Controls

In July 2021 the Colombo Consumer Price Index hit 5.7 percent, higher than the 5.5 percent ceiling policy rate at which money is printed and higher than the 5.26 percent de facto policy rate at which large volumes of money is injected by rejecting public bids at higher rates.

Sri Lanka’s National Consumer Price Index had already hit 6.1 percent in the previous month, higher than the 4-6 percent inflation target that the central bank is said to be following despite having a pegged exchange rate regime.

Trade Minister Bandula Gunewardene had said fines for those breaking price controls would be raised 4,000 percent, from 2,500 to 100,000. Argentina style precios cuidados are planned to contain soaring rice prices.

“It seems to me that this is an issue that we ought to be prepared to stand up to, as any soldier would stand up in times of great stress, and face our responsibilities to the American public,” Eccles said.

“We are almost solely responsible for this inflation…the whole question of having rationing and price controls is due to the fact that we have this monetary inflation, and this Committee is the only agency in existence that can curb and stop the growth of money.”

“We can not pass this responsibility; we should tell the Treasury, the President, and the Congress these facts, and do something about it.”

Shortly thereafter in 1951, the Treasury Fed Accord was signed giving independence to the Fed. The Fed maintained independence up to 1969 under Chairman William McChesney Martin.

President Richard Nixon caused his resignation and appointed output gap targeting Arthur Burns to avoid a rate hike. The US dollar collapsed in 1971, the Bretton Woods system disintegrated and the gold standard ended, along with the imposition of ‘Nixon’s Shock’ trade controls.

Analysts have faulted the International Monetary Fund for giving technical advice for Sri Lanka’s central bank to print money and target an output gap, Burns style, despite operating a forex reserve collecting peg.

EN’s economic columnist Bellwether says in 1795, the Bank of England faced a run on is gold reserves (a BOP deficit) when Britain’s usury laws prevented it from raising the discount rate above 5 percent coincidentally around the ceiling 12-month yield that is now defended in Treasuries auctions.

Another government party opposes the Kotelawala Defense University bill

A constituent party of the government, Democratic Left Front led by Minister Vasudeva Nanayakkara states that the Kotelawala Defense University Act is against the free education policy.

The party said in a statement that attempts to manipulate ordinary civilian students in accordance with the rules and regulations of the security forces are also against the constitution of the party.

A statement issued by the Democratic Left Front states that according to the Kotelawala Defense University bill, the basis for admission is not transparent.

Rather than analyzing the provisions of the bill separately, the party said in a statement that it would show the government its overall impact and the way forward.

Meanwhile, the Communist Party of Sri Lanka, another constituent party of the government, recently decided to vote against the Kotelawala Defense University bill if it is not amended. The Deputy Chairman of the party, Parliamentarian Weerasumana Weerasinghe stated that the ruling party was informed about this decision taken at the party meeting as well.

Posted in Uncategorized

Another ex-domestic aide at MP Bathiudeen’s house claims she suffered sexual harassment

Investigations disclosed that three of the eleven women who had served as domestic workers at MP Rishad Bathiudeen’s residence in Colombo since 2010, have died.

The Police launched investigations following the death of the 16-year-old girl who recently died of burn injuries while working at the residence last month.

Following the investigations, the police said that 11 women including the 16-year –old girl had worked as domestic aides at Bathiudeen’s residence between 2010 and 2021.

Then, the special investigation teams were deployed to record statements from the women who had previously worked there.

The Police had earlier said the same broker who brought the 16-year-old girl to the MP’s house was instrumental in bringing the other women too to the residence.

It is learnt that in addition to the teenage girl, another woman who had worked there earlier had died due to an ailment (cancer), while another woman is reported to have committed suicide after she had left the MP’s residence.

Police said they have recorded statements from eight women till date.

Meanwhile, Western Province Senior DIG Deshabandu Tennakoon said following the questioning of those women, a 29-year old woman told the police that she too was sexually abused while working at MP Bathiudeen’s house.

Police are conducting further investigations into those incidents.

The wife, father-in-law of former Minister Bathiudeen, the broker were arrested and remanded in connection with the death of the 16-year old girl, while the 44-year old brother-in-law of the former minister was arrested and remanded over the alleged rape of a 22-year-old woman who served as a domestic aide at the MP’s residence.

Posted in Uncategorized

Sri Lanka beckons Indian pharma companies to Hambantota

Officials of Sri Lankan Investment Board, Pharma Manufacturers Association to hold virtual meet with investors on August 5

Sri Lanka is seeking to invite potential investors from India to set up manufacturing operations in the new Hambantota Pharmaceutical Zone and is likely to offer a number of incentives, including tax sops.

Senior officials from the Sri Lankan Board of Investment and the Pharma Manufacturers Association of Sri Lanka will hold discussions with potential investors from India through an online meeting this week on the investment opportunity in the zones, an official tracking the matter told BusinessLine.

This follows discussions between Minister of External Affairs S Jaishankar and his Sri Lankan counterpart, Dinesh Gunawardena, in Colombo in January on opportunities for Indian pharmaceutical manufacturers in special zones in Sri Lanka.

“Indian investments in the zone will be important both from the economic and diplomatic perspective,” the official added.

The Sri Lankan government is setting up the Pharmaceutical Zone in Arabokka in Hambantota on over 400 acres in a bid to increase export earnings to face the Covid-19 challenges effectively. The zone’s objective is to meet around 40 per cent of the local demand for pharmaceutical products while creating the pathway to a $1-billion independent export vertical by 2025, per reports. The meeting with Sri Lankan officials on August 5 is being facilitated by the Federation of Indian Export Organisations and is likely to be attended by a number of pharmaceutical manufacturers in the country.

Tax concessions

While the details of the tax and other incentives on offer may be shared by Sri Lankan officials at the meet, according to reports in Sri Lankan media, concessions will cover corporate income tax, income tax on employees, Value Added Tax (VAT) and the Ports and Airports Development Levy. Enterprises are also likely to be exempted from Customs duty for importing capital goods and construction-related items, raw materials and production/process-related consumables.

Sri Lanka is an important trade and strategic partner for India and the Indian pharmaceutical industry exported shipments worth $245.76 million in 2020-21 to the country. India’s overall exports to Sri Lanka in 2020-21 was $3.5 billion, which was about 7.9 per cent lower than the previous year.

“Having strong economic ties with Sri Lanka is also a good strategic option for India to counter the growing influence of China in the neighbourhood. Investing in pharmaceutical zones in Sri Lanka could be beneficial for India on both economic and diplomatic fronts,” the official said.

Posted in Uncategorized

UNHRC puts Govt. in a spot, diplomacy deficient

The United Nations Human Rights Council (UNHRC) is set to crack the whip on Sri Lanka at its 48th sessions just six weeks ahead.

It is not only on issues arising from the March sessions of the damning Resolution on Sri Lanka caused by dismal diplomatic failures and a confrontational posture, particularly with western nations. Added to it is a part of the Resolution which empowered the Office of the High Commissioner for Human Rights to “consolidate, analyse and preserve information and evidence.” This is for “future accountability processes for gross violations of human rights or serious violations of international humanitarian law, to advocate for victims and survivors, and to support relevant judicial proceedings in Member States with competent jurisdiction.”

Ruling alliance leaders had believed that a new mechanism for “future accountability mechanisms” would not materialise in the light of budget cuts. In fact, Foreign Minister Dinesh Gunawardena, told the Sunday Times that the budget for Human Rights Council has been pruned down by fifty percent. This was reported in our front-page lead story of June 5. He said the Council’s move to set up a separate secretariat to enforce matters relating to the resolution it passed on Sri Lanka in March this year had suffered a setback. He said, he was awaiting a full report from the Sri Lanka Permanent Mission in New York. There have been no comments from Minister Gunawardena thereafter whether a fund cut has in fact taken place.

However, the Sunday Times has learnt that the Human Rights Council has won approval for its additional requirements for 2021 and 2022. The US$ 2.8 million as originally requested has been phased out as $ 0.737 million for 2021 and $ 2.1 million for 2022. A diplomatic source said that the Administrative and Budget Committee (Fifth Committee) of the UN General Assembly has approved the funds for the period concerned for the setting up of a Special Secretariat of 13 members. It is not immediately clear of the status of the funding for the remaining years.

The Office of the High Commissioner has already set in motion procedures for staffing the new Secretariat. The top-most position is expected to be given to a Senior Legal Advisor with experience in international criminal justice and/or criminal investigations and prosecutions to coordinate the team and oversee an information and evidence collection strategy. A central repository will consolidate, preserve, and analyse information with national authorities for universal jurisdiction and extra-terrestrial jurisdiction cases and other accountability purposes in line with relevant United Nations guidelines. There will be one senior Legal Advisor and two Legal Advisors.

If in fact the additional budget for the setting up of the separate Secretariat has seen its way through in its entirety through the Fifth Committee, it regrettably demonstrates the failure on the part of the Sri Lanka Permanent Mission in New York and the Foreign Ministry to pursue a strategy opposing the envisaged finances. This complacency may have culminated from some ill-informed thinking that this Secretariat’s personnel will not be permitted to visit Sri Lanka thereby hampering the work of the mechanism. Whilst such action would further isolate Sri Lanka internationally, it should not be forgotten that the Human Rights Commissioner’s office claims it already has trophy evidence which would be utilised. This could also lead to bilateral censuring of Sri Lanka by some countries. It is time for sanity to prevail over misplaced ego to ensure that Sri Lanka’s economy is not pushed into the quagmire further.

Core-group’s concerns

Recent consultations by the core group headed by the United Kingdom makes clear that there has been no official shift in its position since the last Resolution was adopted in Geneva on March 23. Among the areas where the core group is expressing serious concern is the so-called harassment of civil society activists and those in opposition parties. Another is its alleged concern over the deterioration of law and order with murder victims being pardoned and the workings of the Office of Missing Persons (OMP). There is consensus among them to raise issue over these matters.

The United Kingdom, which is playing a key role since the United States was then not a member of the UN Human Rights Council, has widened its efforts as leader of the core group. Last week, the UK government invited proposals for projects promoting human rights and democratic values in Sri Lanka. The purpose, it said, is to alert potential civil society implementing partners to an opportunity to bid for grant funding to deliver project activity promoting human rights and democratic values in Sri Lanka.

“The High Commission in Colombo particularly welcomes expressions of interest (EOIs) which:

bring together one or more of the thematic areas (for example: working with media to promote and foster social cohesion or protecting human rights defenders and journalists)

include project activities across several strands, including working in partnership with other implementing partners with diverse expertise

are mindful of cross-cutting themes such as conflict-sensitivity, gender, and environment

“The activities will focus on the following priority themes. Suppliers are encouraged to identify target areas within and across these themes and justify their focus.

“We welcome suggestions for activities, which support press freedom in Sri Lanka. This could include:

supporting journalistic practice in identified ‘needs’ areas in Sri Lanka (such as digital and physical safety, high-quality and inclusive content, or data-driven and investigative journalism) – e.g., through direct capacity building to journalists, or initiatives to support the spread of journalistic best practice and learning

initiatives to boost civic literacy and tackle disinformation, especially where potential scalability, cross-cutting themes, or sustainability can be demonstrated.

We welcome proposals that address ethno-religious and religious tensions in Sri Lanka. These could include:
raising understanding and awareness including on triggers of religious and ethno-religious tensions and conflict (inter and intra-communities), through effective research and documentation
promoting conflict management through education of and engagement with local and national authorities.
“Suppliers should consider the best delivery mechanism to meet needs. Suppliers may want to consider capacity building (direct, or through ‘train the trainer’ models) alongside more creative mechanisms such as support to peer to peer networks or sector initiatives and creating relevant products/resources (eg: technical ‘tool kits’). Activities will need to consider Covid-19 risk mitigation and planning.

“The successful implementer should be able to commence work from October 2021 and complete all project activity by mid-March 2022 (subject to final funding decisions).

“Project involving communications will be subject to an additional approximately 2-month approval process in addition to usual set up processes. Suppliers should consider delay in start-up in designing their work.

“We anticipate budget provision for a number of outputs with individual costs up to £60,000. Proposals with multiple implementing partners should be submitted under one lead contractor. We are unable to support contingency, miscellaneous, small grants, or per diem costs. Admin costs must not exceed 10%.

“EOIs (Expression of Interest) should cover the type of project intervention and delivery proposed, as well as how it will address value for money. Bidders must provide a broad indication of proposed activities to be delivered, anticipated outcomes, and sustainability approaches post-completion of the project. They should factor in risks and mitigation plans, i.e., with COVID-19. They must also demonstrate an ability to deliver all project activity before mid-March 2022, with a substantial portion within the first half of the project. An outline activity-based budget must be submitted as an annex to the EOI.”

This project explains the UK government’s focus and the mechanism, no doubt, would help it to obtain feedbacks on areas of human rights and related fields. However, some in Colombo feel that the move was a retaliatory measure, after Sri Lanka became the only Commonwealth and South Asian country to back China in a joint statement to condemn the UK over human rights violations. It no doubt would help eliciting further information on human rights abuses that would be useful for the new Secretariat.

Rather sadly, it comes as a time when there has been considerable re-thinking on the part of the ruling alliance over issues before the UNHRC. President Gotabaya Rajapaksa tweeted just two weeks ago: “We are committed to work with the @UN to ensure accountability & human dev. to achieve lasting peace & reconciliation. We are dedicated to resolving the issues within the democratic & legal frame to ensure justice & reconciliation by implementing necessary institutional reforms.” It came with plans to launch a programme of reconciliation – a task which is to be undertaken by Finance Minister Basil Rajapaksa.

However, the fault lies elsewhere — at the Ministry of Foreign Affairs. Since the adoption of the Resolution on Sri Lanka in March, no concrete measures have been taken by the Government to explain its own position either to the Sri Lankan people or the world community at large. Yet, the Ministry of Foreign Affairs put out a 30-page response to the report from UN Human Rights High Commissioner Michele Bachelet. It said that the Government repudiates the conclusions and recommendations “that have been erroneously arrived at in the High Commissioner’s report as they are based on incorrect and/or unsubstantiated and extraneous sources/material, and contravenes the principles of universality, impartiality and non-selectivity, as speculated in the General Assembly resolution 60/251 that created the HRC.” There were also three other main reasons, all of which, Sri Lanka said, “went beyond the legitimate scope of the Office of the High Commissioner.” The initiative by the British High Commission is blatant in openly seeking to posture in the internal affairs of the receiving state. The Foreign Ministry’s silence in this regard is deafening.

US resolutions and Canada’s moves

Having taken that position at the March sessions, engaging the Human Rights Council in September does become a challenging issue for the Government. It is particularly because of the same issues surfacing in different forms at other international fora. In May, six representatives submitted a resolution to the US Congress (H. Res 413). The text, which makes references to a so-called “Tamil homeland,” is now before the Foreign Relations Committee. Diplomatic sources say deletions of such references was likely but did not rule out the resolution coming up before the Congress. This resolution is in the name of Deborah K. Ross, Brad Sherman, Bill Johnson, Danny K. Davis, and Kathy Manning.

This is the third such resolution on Sri Lanka before the US Congress. In March 2011, the US Senate unanimously passed resolution S. Res. 84 introduced by Senator Patrick Casey. It commended the UN Secretary General for appointing a panel to advise the UNSG on Sri Lanka’s human rights accountability and called “on the Government of Sri Lanka, the international community, and the United Nations to establish an independent international accountability mechanism to look into reports of war crimes, crimes against humanity, and other human rights violations committed by both sides during and after the war in Sri Lanka and to make recommendations regarding accountability,” as one of the four elements of the resolution.

In June 2019, the US House of Representatives passed resolution H. Res. 442 — observing 10 years since the war in Sri Lanka ended on May 18, 2009, commemorating the lives lost, and expressing support for transitional justice, reconciliation, reconstruction, reparation, and reform in Sri Lanka. The resolution said such measures “are necessary to ensure a lasting peace and a prosperous future for all Sri Lankans”.

Just last week, Canada’s Foreign Minister Rob Oliphant rejected a call from Tamil diaspora groups for that country to take up Sri Lanka’s case before the International Criminal Court. In the wake of a petition campaign by Tamil diaspora groups, Oliphant said that the Resolution adopted in March “does not incorporate a mechanism to refer Sri Lanka to the International Criminal Court (ICC). Only the United Nations Security Council could refer cases to the ICC if the country concerned is not a party to the Rome Statute or has not accepted the ICC’s jurisdiction. He, however, declared that “Canada recognises the importance of an independent and credible justice process that has the trust and confidence of victims and believes this remains necessary for reconciliation and long-term prosperity. The OHCHR’s new mandate will be critical for establishing future accountability processes. Canada also encourages all non-States Parties to consider acceding to the Rome Statute of the ICC.” Sri Lanka’s new High Commissioner designate to Ottawa, Harsha Navaratne, has his work cut out when he reaches that country. Canada is a co-sponsor of the March resolution.

Whilst there was a government explanation on the revision of the Prevention of Terrorism Act, a much talked of issue by the European Parliament and referred to in the March Human Rights Council resolution, should not the government by now have established at least an action plan on the way forward on reconciliation and human rights issues and sought its operationalisation at this juncture? Adopting such a step on the eve of the September sessions of the Human Rights Council would only give credence to the claim that they (the government) have been pushed to dance to the tune of the west rather than serve the interests of the nation.

Economy under strain

These developments come amidst a worsening economic situation, the result of a dip in foreign reserves. The Government last week honoured another debt commitment of one billion rupees. Finance Minister Basil Rajapaksa is involved in a two-pronged approach, one to prepare for the budget in November and the other to take further stock of the worrisome financial situation. Some of the observations of the rating agencies, which advice investors, portfolio managers, agencies and institutions, are causing great concern. The coverage by them affects investor confidence, phenomenally increases borrowing costs and tends to shut Sri Lanka from the international capital markets. This leaves the Government with only one choice — to rebut their claims. Such a move has not been effective.

On July 19, just days before the last sovereign bond settlement of one billion US dollars, Moody’s placed the Government at “CAA1”, putting the country’s ratings under review for downgrade. This immediately triggered a frenzy of panic sell offs at huge discounts. This is the second time in six months Moody’s has given a negative assessment. A few months earlier, Fitch Ratings downgraded Sri Lanka to “CCC” category, indicating a possibility of default. Bloomberg noted that “Sri Lanka’s risk premium for a default jumped, reflecting concern that the COVID-19 pandemic is damaging the nation’s ability to fill its foreign exchange coffers.

The Ministry of Finance reacted after Moody’s announcement with a statement which charged that the pronouncement was “ill timed, ill-judged and unacceptable.” However, Goldman Sachs, another leading agency said it was confident that Sri Lanka will “muddle through” near term debt challenges. It said its calculation points to Sri Lanka (comfortably) meeting all external obligations falling due in 2021. Save existing reserves, swap lines, and other already announced funding lines, are sufficient to honour foreign currency obligations falling due this year.

However, Goldman Sachs cautioned, that “the trajectory beyond 2021 would be more daunting without additional external financing. It adds that its calculations point to Sri Lanka “comfortably meeting all its external obligations falling due in 2021, leaving the country with an estimated US$ 6.4 billion in external reserves by the year-end although the trajectory beyond that could be more daunting without additional external financing.”

Finance Minister Rajapaksa has refrained from responding to the rating agencies or making public comments on the state of foreign reserves. That task was taken over by State Minister, Nivard Cabral. For the next three months, he declared, listed inflows would amount to US $ 2,650 million. The breakdown:

SWAP from India US$ 400 million

SWAP from Bangladesh US$ 250 million

Loan from China Development Bank US$ 300 million

Special Drawing Rights allocation from
IMF US$ 800 million

Central Bank Purchases from the forex market in the next three months US$ 200 million

Inflow from International Sovereign Bonds by local banks –US$ 300 million

Expected inflows from the utilisation of under-utilised assets – US$ 400 million

The Central Bank has also negotiated a SWAP arrangement with China for US$ 1500 million, which too, he said, can be accessed. Hence, he said it could be included as part of effective reserves. However, State Minister Cabral appears to have glossed over a key factor — that there is a bill to pay internally and internationally (for imports). He also assumes that a rollover of Sri Lanka Development Bonds and Foreign Currency Banking Units is possible without conditions. For example, the US$ 400 million from India cannot be rolled over beyond once without the Government signing an agreement with the International Monetary Fund (IMF).

As expected, the Government has now set August 2 (Monday) for the fuller resumption of work in the state sector. This is part of a priority programme to restore ‘normalcy’ whilst fighting the COVID-19. With this task, it is focusing on reviving the tourism sector in a bid to shore up foreign exchange earnings.

Protests continue

However, the spectre of strikes has been a cause for concern. Protests by teacher and principals’ unions continued in various parts of the country. Teachers continued their boycott of online classes. Friday marked 19 days since teachers stepped back from conducting online classes over several key demands. Main among them is that the authorities take steps to resolve a salary anomaly that has affected teachers and principals reportedly for 24 years. Trade unions are demanding that the issue be settled by enforcing the recommendations of a committee.

However, that is not the only issue their protest campaign is linked to. They have also turned their sights against the controversial Kotelawala National Defence University (KNDU) Bill and have called for it to be withdrawn. The debate on the bill is due to take place on August 6. The protests are being spearheaded by a coalition of 17 trade unions, including the Ceylon Teachers’ Union, the Ceylon Teachers’ Service Union, and the Sri Lanka Professional Principals’ Association.

The Federation of University Teachers’ Associations (FUTA) too announced a boycott of online classes this week demanding that the Government scrap the KNDU Bill.

Accordingly, lecturers at all state universities have stepped back from conducting online classes. Lecturers’ associations also held protests outside universities this week to condemn the KNDU Bill and demand its withdrawal. The prevailing fertiliser crisis saw farmers continuing to hold protests. Many who were at these protests strongly disputed the Government’s claims that there was no fertiliser shortage. Some farmers also demanded compensation for crop losses suffered on account of lack of chemical fertiliser. Most of these protests were organised by the Janatha Vimukthi Peramuna (JVP) aligned All Ceylon Farmers’ Federation.

The spread of COVID -19 on the one hand and the threats of strikes which are having a crippling effect, no doubt, are serious obstacles to the Government’s efforts to restore ‘normalcy’. Not so long ago, sections of the state sector were declared essential service but that has not come as a deterrent. Hence, the Government has a bigger challenge.

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With a new High Commissioner and strategy roadmap, Sri Lanka seeks to reset ties with India

After months of strain over a number of issues including the cancelled port project in Colombo , Sri Lanka is preparing to send its High Commissioner designate to Delhi, along with a ‘roadmap’ to restore ties that includes resolving fishermen’s issues, building connectivity, trade and investment, as well as promoting religious links, Buddhist exchanges and handing over a sacred “Sita temple stone” from Sri Lanka for the proposed Ram temple in Ayodhya.

According to a formal proposal presented to Sri Lankan President Gotabaya Rajapaksa, which The Hindu has seen, the roadmap will help bridge the “growing trust deficit”.

In February, the Modi government expressed its unhappiness over Sri Lanka’s decision to scrap the East Container Terminal project signed in 2019, amidst other signs that China was gaining the upper hand in infrastructure deals in the country. The Rajapaksa government has been disappointed over the lack of movement on requests it made for India for assistance including a debt repayment waiver for three years and a separate currency swap for $1 billion, to help with economic crisis, which were made by President Gotabaya and Prime Minister Mahinda Rajapaksa to Mr. Modi.

Transactional approach

“In recent years, the Indo-Sri Lanka bilateral relationship has been increasingly dominated by a transactional approach. This is a consequence of the changes in the geo-political equilibrium in the region, that have resulted in a growing trust deficit,” says the document prepared by a team led by new High Commissioner- to-be Milinda Moragoda, Deputy High Commissioner Niluka Kadurugamuwa and top diplomats at missions in Delhi, Chennai and Mumbai.

 

The reset in ties is expected to be marked by the arrival of Mr. Moragoda, a former Cabinet Minister, in mid-August. His predecessor High Commissioner Austin Fernando completed his term and returned to Colombo on January 11, 2020, which makes this the longest period the position has remained vacant, even though Mr. Moragoda’s appointment was announced in August 2020. While officials say the COVID situation and the lack of connectivity between India and Sri Lanka during the second wave contributed to the delay, no official reason was given to the Indian side who had processed the diplomatic agreement speedily at the time.

An MEA official welcomed news of the High Commissioner’s pending arrival, but said New Delhi had not yet received details of the “Integrated Country Strategy” for India.

In its recommendations, the paper says it is ‘imperative’ that Colombo speeds up the West Container Terminal project that Sri Lanka offered after cancelling the ECT project, as well as the Trincomalee Oil Tank Farm and other pending projects.

It also advocates an inter-Agency Committee on Trade, Investment and Tourism to reach Foreign Direct Investment (FDI) goals of $256 million from India in 2022. While it sets a goal for Sri Lankan exports to India of about $675 million in 2022, it points out that export prospects presently suffer due to “increasing protectionism [in India], limited market access, a challenging and unpredictable regulatory environment as well as the Make in India Initiative, which prioritises local business and sourcing of local raw materials and products over imports.”

 

The strategy is silent on the Economic and Technology Cooperation Agreement (ETCA), negotiations for which appear deadlocked.

In his letter to President Gotabaya introducing the paper, Mr. Moragoda outlines plans for the next two years of his tenure in Delhi, including high-level visits between both capitals. Putting a special emphasis on the role of Buddhism, which he calls “most precious gift that India has bestowed upon [Sri Lanka]” from the time of Emperor Ashoka, he says the two countries are bound by geography, economics, culture, history and democratic values.

“Against this backdrop, any setbacks to our relationship however intractable they may appear to be at any given point in time, can only be temporary,” Mr. Moragoda adds.

“Velankanni trail”

The strategy paper advises promoting exchanges of Buddhist and Hindu scholars as well as Sri Lankan Catholic pilgrims to the “Velankanni trail” in Tamil Nadu. In particular, it speaks of handing over a sacred stone from the Sita Amman temple in Sri Lanka for the Ram Temple planned in Ayodhya.

Among the problems the paper seeks to address is the conflict in the Palk bay, where Sri Lankan fishermen object to Indian fishermen using bottom trawlers and fishing illegally along their coast, which often leads to arrests of the Indians. Indian fishermen accuse the Sri Lankan Navy of attacking and killing them.

The paper suggests that top Sri Lankan diplomats engage directly with the government and fisheries associations in Tamil Nadu. The paper also advises engaging with the MEA, government in Tamil Nadu and the UNHCR to encourage and facilitate the long-pending return of about 1 lakh Sri Lankan refugees living in India.

Proposals to enhance connectivity include resuming passenger ferry services and more air connectivity and new destinations for Sri Lankan flights. The “air travel bubble”, that only began in April was suspended after a few weeks due to the increase in COVID cases. However the country strategy paper is silent on taking forward the India-backed Palaly airport and Kankesanthurai Harbour development projects in Jaffna.

Source:The Hindu

Sri Lanka Army launches 24-hour AstraZeneca vaccination drive

Sri Lanka will be launching a 24-hour vaccination drive for the first time to administer the Oxford-AstraZeneca doses newly arrived from Japan.

The program will be carried out by the Sri Lanka Army, the Head of the National Operations Centre for Prevention of COVID-19 Outbreak (NOCPCO) General Shavendra Silva.

 

The drive will commence at the Viharamahadevi Park in Colombo at 08.30 am this morning (August 01).

The program will continue until further notice, the Army Commander said.

Meanwhile, the newly-arrived Oxford-AstraZeneca jabs from Japan will be administered in 18 MOH offices – 05 in Kalutara District and 15 in Gampaha District as well as 13 hospitals and 08 selected locations in Colombo District, including the 24-hour center at Viharamahadevi Park.

Those who are arriving to receive their second dose of the AstraZeneca vaccine are required to bring their National Identity Card (NIC) and vaccination card.

The vaccination clinics are as follows:

Colombo District

Hospitals MOH Office
01. Moratuwa DH Battaramulla
02. Athurugiriya DH Borelesgamuwa
03. Nawagamuwa DH Dehiwala
04. Piliyandala DH Egoda Uyana
05. Wethara DH Gothatuwa
06. Awissawella DGH Hanwella
07. Homagama BH Homagama
08. Kosgama BH Kaduwela
09. Thalangama BH Kahathuduwa
10. Padukka DH Kesbewa
11. IDH – Angoda Kolonnawa
12. CEBH – Mulleriyawa Maharagama
13. CSTH – Kalubowila Moratuwa

Nugegoda
Padukka
Piliyandala
Ratmalana
Pitakotte

Gampaha District

MOH Office Covering Hospital
01. Attanagalle BH – Wathupitiwala
02. Biyagama DH – Biyagama
03. Divulapitiya DH – Divulapitiya
04. Dompe DH – Dompe and DH – Radawana
05. Gampaha DGH – Gampaha
06. Ja-Ela DH – Ja-Ela
07. Katana DGH – Negombo
08. Kelaniya BH – Kiribathgoda
09. Mahara DH – Udupila and DH – Mawatuhiripitiya
10. Minuwangoda BH – Minuwangoda
11. Mirigama BH – Mirigama
12. Negombo DGH – Negombo
13. Ragama TH – Ragama
14. Seeduwa Wijaya Kumaratunga Hospital
15. Wattala TH – Ragama and DH – Pamunugama
Kalutara District – RDHS Area

MOH Office Vaccination Centre

Agalawatta Pimbura Primary School
Bandaragama Pinwatta Clinic
Horana Thalagala Mangalaramaya Temple
Panadura Hirana Polly Clinic and Mahanama Vidyalaya
Mathugama Sanasa Office Bopitiya
Army and Tri-forces – Colombo RDHS/CMC Division

01. Viharamahadevi Park
02. Diyatha Uyana – Monday/Tuesday/Wednesday
03. Army Hospital (Narahenpita)
04. Werahera Army Camp
05. Panagoda Bodhiraja Ramaya

Gampaha RDHS Division

01. Maris Stella College – Negombo
02. Kiriwallawala Maha Vidyalaya (Kadawatha)
03. Dharmaloka Vidyalaya (Kelaniya)

Colombo Municipal Council

01. BMICH
02. PD Sirisena Ground
03. Sugathadasa Stadium