Author: TELO Admin

Ministerial portfolio of Finance Minister Basil Rajapaksa

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Basil Rajapaksa was sworn in as the Minister of Finance before President Gotabaya Rajapaksa, on Thursday morning (Jul. 08).

As per an extraordinary gazette issued by President Gotabaya Rajapaksa on Wednesday (Jul. 07), the Ministry of Finance which came under the purview of Prime Minister Mahinda Rajapaksa jointly with Minister of Buddhasasana, Religious & Cultural Affairs and Minister of Urban Development & Housing will now function as a separate Ministry.

Accordingly, the following Departments, Statutory Institutions, and Public Corporations are among the related Institutional and Legal Framework of the Finance Ministry under Basil Rajapaksa.

01. Treasury Affairs:
– General Treasury
– Department of Fiscal Policy
– Department of National Budget
– Department of Management Services
– Department of External Resources
– Department of Public Finance
– Department of Treasury Operations
– Department of Public Accounts
– Department of Trade and Investment Policies
– Department of Information Technology Management
– Department of Legal Affairs
– Department of Management Auditing
– Department of Development Finance

02. Government Revenue Management Affairs:
– Department of Inland Revenue
– Sri Lanka Customs
– Department of Excise
– National Lotteries Board
– Development Lotteries Board
– Import and Export Control Department

03. Bank Financial and Capital Market Policies and Regulatory Affairs:
– Central Bank of Sri Lanka
– All State Banks, Financial, Insurance and their subsidiaries and related institutions
– Sri Lanka Insurance Board
– Sri Lanka Insurance Corporation and its subsidiaries and affiliated companies
– Credit Information Bureau
– Department of Registrar Companies
– Security and Exchange Commission of Sri Lanka
– Sri Lanka Export Credit Insurance

04. Provision of Funds:
– Lady Lochore Fund
– Strike, Riot, Civil Commotion and Terrorism Fund
– National Insurance Trust Fund
– Employees’ Trust Fund
– Shrama Vasana Fund
– National Health Development Fund
– Kidney Fund
– Tea Shakthi Fund
– Kapruka Fund
– Public Service Pensioners’ Trust Fund
– Buddha Sasana Fund
– Buddhist Renaissance Fund
– Skills Development Fund Ltd.
– Local Loans and Development Fund
– Inventors’ Fund
– Thurusaviya Fund
– Central Cultural Fund

05. Institutions to be liquidated or amalgamated with other Institutions:
– Department of Telecommunications
– Wildlife Trust
– Sri Lanka Media Training Institute
– Internal Trade Department
– Pulse Crops, Grain Research and Production Authority
– Janatha Fertilizer Enterprises Ltd
– Protection of Children National Trust Fund

MEANWHILE…

Prime Minister Mahinda Rajapaksa was sworn in as the new Minister of Economic Policies and Plan Implementation before President Gotabaya Rajapaksa today (Jul. 08).

The Ministry of Economic Policies and Plan Implementation was also established through the extraordinary gazette issued by President Gotabaya Rajapaksa on Wednesday (Jul. 07).

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Mahinda Rajapaksa takes oaths as Minister of Economic Policies and Plan Implementation

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Prime Minister Mahinda Rajapaksa has been appointed as the Minister of Economic Policies and Plan Implementation.

He took oaths before President Gotabaya Rajapaksa today.

Rajapaksa was earlier the Minister of Finance. However, his bother Basil Rajapaksa was appointed as the new Minister of Finance.

The Ministry of Economic Policies and Plan Implementation will be in charge of the planning and implementation of relevant policies, in order to accelerate economic development and social progress based on the National Policy Statement: “Vistas of Prosperity and Splendour”.

The Subjects and Functions of the new Ministry includes formulating policies in relation to the subject of economic policies and plan implementation, in conformity with the prescribed Laws, Acts and Ordinances, implementation of projects under the national budget, state Investment and National Development Programme, and formulating, implementing, monitoring and evaluating policies, programmes and projects, related to subjects and functions under below-mentioned State Corporations and Statutory Institutions for “economic policies & plan implementation” based on the national policies implemented by the government, and in accordance with the policy statement “Vistas of Prosperity and Splendour”.

The new Ministry will also facilitate carrying out relevant development activities while coordinating all ministries with the Presidential Task Force for Economic Revival and Poverty Alleviation and the Presidential Task Force for transform Sri Lanka into a Green Socio economy with Sustainable Solutions for Climate Changes.

It will also coordinate with the Presidential Task Force for Gama Samaga Pilisandara Rural Development.

The new Ministry will also monitor and review the cost of living and the flow of goods and services among the community of consumer, making periodic requests to the Cabinet Committee on Cost of Living to ensure that consumers as well as local producers and suppliers to receive goods and services at the reasonable prices.

it will also implement people-centric development activities by coordinating the development activities of District and Divisional Development Committees and Provincial Councils.

Mahinda Rajapaksa: “China is our true friend; China to lead Asia’s uprising ”

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Sri Lanka’s Prime Minister Mahinda Rajapaksa says that China has been a ‘historical friend’ and, based on the long-standing cooperation between the two nations, it must be acknowledged that China is one of Sri Lanka’s most sincere friends.

He made these comments while addressing the virtual conference commemorating the 100th anniversary of the Communist Party of China (CPC) on Wednesday.

“I am aware that it was the foreign policy positions of the CPC that elevated China on the global stage. However, China has never tried to impose its own political views on the world,” Rajapaksa said.

“China has also never felt the need to manipulate the affairs of other countries. China has helped the other countries, keeping them at the same level, which is a very important matter for a country’s independence as well as its sovereignty.”

Therefore, countries never hesitated to deal with China, because they were allowed to maintain their independence, he stated. “It is the same for Sri Lanka. That is why most doors of the world were opened to China.”

He stated that this policy is very important for the progress of China, internationally and that it has now become clear that China will lead the rise of Asia in the century ahead.

The Prime Minister said that dividing of the world into two camps is not important anymore. China did a historic service to relieve Asian and African countries from the hardships faced due to this division, he said.

“It was China that helped the world, which was facing difficulties due to the division of the world into two camps. At that time, Zhou Enlai brought the idea of non-aligned nations to the world, for world relief. That non-aligned policy is still a relief to the world today.”

“The Belt and Road Initiative is the present policy of China, which is not something alien to us,” he said.

Rajapaksa stated that during ancient times, Sri Lanka was located at a point on the Silk Road connected with China and that like the Buddhist monk Fa-Hien Thero, many merchants and business people had dealings with Sri Lanka while they were traveling to and from China.

He added: “China is traveling along this Silk Road today with many lessors for the world. The open economy has spread throughout the world, changing the very structure of many countries. However, China accepted the world reality of the open economy in a way that was suitable to China. Therefore, China did not accept the open economy as something that divides the country into classes and weakens the country. Instead, China has successfully eradicated poverty of 900 million people under its open economic policy and set a great example to the world by the way it adopted the open economy. I am confident that, China will bring back the economic strength that Asia had five hundred years ago through this Silk Road.”

The prime minister stated that China always believed that improving infrastructure will provide new ways and new strengths for the people. “Therefore, we have constantly invited China to help develop the infrastructure of our country.”

Updated quarantine measures for travellers arriving in Sri Lanka

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The Director General of Health Services has issued a new set of quarantine measures for travellers arriving in the country from overseas during the COVID-19 pandemic.

It states that Sri Lankan Citizens, including Sri Lankan Seafarers arriving by air or Dual Citizens (if using the Sri Lankan passport to arrive), do not need to get the prior approval from the Foreign Ministry and Civil Aviation Authority of Sri Lanka to arrive in Sri Lanka.

They can request a quarantine hotel or government quarantine center after arriving in Sri Lanka, the statement said.

Meanwhile all travellers arriving in Sri Lanka should mandatorily carry a negative COVID-19 PCR test report in English language done within 72 hours prior to embarkation.

Travellers who have received the recommended doses of COVID-19 vaccine are required to carry the original vaccination certificate / card or a verifiable evidence of vaccination.

If the recommended doses of the COVID-19 vaccination are completed and departs from abroad two weeks after completion of vaccination, they will be considered as “Fully Vaccinated”.

No further quarantine is necessary for fully vaccinated travellers if the On Arrival (Day One) PCR test report is negative, the DG of Health Services said.

But they have to conduct a PCR test on Day 7 after arriving in Sri Lanka from a Ministry of Health approved laboratory.

“As there are positive cases reported among fully vaccinated persons in Sri Lanka and in other countries, it is important to minimize Covid-19 or its variants entering into the country. Therefore, fully vaccinated travellers should not relax the preventive measures and should abide by the Covid-19 preventive measures imposed by the Sri Lankan government.”

Quarantine measures for travellers who have not received COVID-19 vaccination or have not completed the recommended doses of vaccination or have departed from abroad within less than two weeks of completion of recommended doses of vaccination have to mandatorily quarantine until completion of 14 days after arrival in Sri Lanka, if the On Arrival (Day One) PCR report is negative.

The Health Ministry says that due to the current COVID-19 situation in Sri Lanka and globally, the following quarantine measured are imposed for travellers arriving in Sri Lanka:

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Sri Lanka confirms 38 Covid-19 deaths on Tuesday, toll rises to 3,351

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Sri Lanka Wednesday reported that 38 deaths due to COVID-19 occurred on Tuesday, July 06, 2021.

The Director General of Health Services Wednesday confirmed that 38 deaths occurred on Tuesday, July 06 due to the COVID-19.

Among the Tuesday’s dead are 21 males and 17 females. The majority of the deaths numbering 29 is of the 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 March has now risen to 3,351 including the deaths confirmed Tuesday.

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Will PM Mahinda Rajapaksa hold onto Finance?

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A tussle has erupted between the Rajapaksa family as Basil Rajapaksa prepares to enter Parliament on July 8 and thereafter enter the cabinet by getting a ministerial portfolio, the Daily Mirror learns.

According to political sources, Basil has asked for the Finance portfolio which is held by Prime Minister Mahinda Rajapaksa, but this has been rejected by the Prime Minister himself as well as his family.

Basil will take oaths as an SLPP National list MP on July 8 following the resignation of Jayantha Ketagoda, and will soon receive his ministerial portfolio by President Gotabaya Rajapaksa. But this portfolio is yet to be finalised as Basil has requested for Finance or something similar in power.

The Daily Mirror learns that discussions are still ongoing among the Rajapaksa brothers and a decision will be made soon. According to reports, the portfolio of Economic Development was also being considered for Basil, a Ministry he held in the previous Rajapaksa government which was headed by Mahinda Rajapaksa.

Earlier, a major rift had erupted within the government following reports that Basil will take oaths as an MP and will receive a ministerial portfolio.

Some government coalition party members had objected to the move, citing Rajapaksa’s dual citizenship as a reason, and had voiced their disapproval to the President and Prime Minister.

Meanwhile, speculation is rife that Jayantha Ketagoda who resigned from his MP seat will be appointed as Sri Lanka’s High Commissioner to Australia, in compensation to him paving way for Basil to enter Parliament. However, this is yet to be officially confirmed.

Immediate risk of SL’s debt-adjustment event has eased: Barclays Investment Bank

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In a report published by the Credit Research platform of Barclays Investment Bank titled “Sri Lanka: Making ends meet”, it has been stated that although Sri Lanka’s foreign reserves remain low (USD4bn at end-May 2021), the immediate risk of a debt-adjustment event has eased.

“Sri Lanka has secured a number of liquidity lines and loans with foreign central banks and agencies, which have eased funding pressures through near-term access to foreign currency,” the report detailed.

Commenting on the efficacy of the front-end SRILAN bonds, especially the 6.25% 2021 and 5.75% 2022s, Barclays details that they have been key beneficiaries of the positive news flow around extra liquidity lines and loans being secured, which they assume has reduced the risk of a debt adjustment event.

“Bond prices reflect this: SRILAN 6.25% ‘21s and SRILAN 5.75% ‘22s are quoted at 97.25-98.50 and 92-25-94.25, respectively. In comparison the SRILAN 5.875% 2022s and 5.75% 2023s, which are quoted at 85.0-86.5 and 75.25-76.75, while the rest of the curve (2025 onwards) is trading around the 63-69 handle. We believe the relatively lower price points of the SRILAN 5.875% 2022s and 5.75% 2023s, which we view as short-dated bonds,” the report highlighted.

However, even though funding lines obtained in recent months have reduced the risk of an imminent debt adjustment, the report questions the sustainability of debt metrics, which will depend on Sri Lanka’s ability to boost economic activity in the next 6-12 months above pre-pandemic levels.

“Our medium-term concerns about the sovereign remain given its challenging external and fiscal position. Recent liquidity lines only provide stop-gap relief, hence we maintain an Underweight rating. In this regard, we believe a return of tourism will be key to support external flows and economic activity,” the report suggested.

Further, Barclays Investment Bank stated that it recommends the purchase of SRILAN 5.875% 2022s and 5.75% 2023s, which are quoted at 85.0-86.5 and 75.25-76.75, respectively, following recent falls.

The report assumes that the market was “spooked” by news that Ceylon Petroleum Corporation (CPC) had USD 2bn of loans with local banks that needed to be refinanced. However, it stated that it does not consider CPC’s debt burden new news, as the risk from such large contingent liabilities, including those of the Ceylon Electricity Board (CEB), have been known for some time.

“In early May, the CPC already reported a LKR21.8bn FX loss. In our view, the recent weakness in SRILAN bonds was triggered by ‘risk-off’ sentiment post the June FOMC meeting as well as some payback given the Sri Lanka complex’s outperformance in Q2 after the PBoC swap line was confirmed,” the report explained.

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Ban on protests to suppress opposition -JVP

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The JVP says the government has imposed a ban on demonstration and protests in a bid to suppress all opposition against the proposed General Sir John Kotelawala National Defence University Bill.

The JVP said the bill will be presented in Parliament and the government is expecting a huge public uproar against it and therefore has imposed a blanket ban.

Speaking during a media briefing in Colombo today, Chief Secretary of the JVP Tilvin Silva said the proposed bill will challenge the free education system of the country and it will also lead to militarisation of the sector.

The Chief Secretary of the JVP said the public has a right to express its opposition against such bills.

Tilvin Silva said the government which holds absolute power in Parliament has been passing detrimental bills against the state instead of providing relief.

He said the ban on demonstration was another move by the present government that has been using its powers to silence dissent.

He said the government should expect more sterner opposition if it continues its arbitrary rule.

US maintains warning of terror threat in Sri Lanka

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The United States has maintained a warning of the threat of terrorist attacks in Sri Lanka. In an updated travel advise, Americans have been told to reconsider travel to Sri Lanka because of Covid and the “threat of terrorism”.

The US State Department said that that terrorists may attack with little or no warning in Sri Lanka, targeting tourist locations, transportation hubs, markets, shopping malls and government facilities.

It also says hotels, clubs, restaurants, places of worship, parks, major sporting and cultural events, educational institutions, airports, hospitals, and other public areas are also at risk.

The US State Department issued the updated travel advise yesterday (6 July).

Following an earlier update in May when the terror warning was maintained, the US Embassy in Sri Lanka had clarified that the travel advisory issued at the time had been solely due to the prevailing COVID-19 situation in Sri Lanka and that the terrorist threat level was maintained as earlier and not changed.

In the latest travel advise, the Centers for Disease Control and Prevention (CDC) in the US said it has issued a ‘Level 3 Travel Health Notice’ for Sri Lanka due to COVID-19, indicating a high level of COVID-19 in the country.

“Your risk of contracting COVID-19 and developing severe symptoms may be lower if you are fully vaccinated with an FDA authorized vaccine. Before planning any international travel, please review the CDC’s specific recommendations for vaccinated and unvaccinated travellers,” the travel notice said.