Sri Lanka exports down 8.8-pct in Oct, apparel falls 13-pct

Sri Lanka’s export earnings in October 2022 drops 8.18 percent to 1,094 million dollars compared to the same period last year due to a decrease in earnings from apparels, eat, rubber, coconuts as the key export market are going high inflation and an energy crisis.

“This was mainly due to the decrease in export earnings from Apparel & Textiles, Tea, Rubber based Products, Coconut based Products, Spices & Essential Oils and Fisheries sector. Further, the impact of global crisis also affecting to decrease export earnings of major products,” Exports Development Board said in it’s report.

In the ten months to October, exports were up 9.33 percent to 11 billion US dollars.

“For the next six months, there is a very low number of orders,” a senior official at EDB told Economy Next.

“Hence the currency coming in is a little bit low but based on the trend it is like one billion a month during these last ten months and up to October, we have received over 10 billion of export revenue and first being the apparel.”

Sri Lanka is currently in the worst currency crisis in the history of the island’s soft-pegged central bank with the rupee collapsing from 200 to 360 in a failed attempt to float the currency (suspend convertibility) with a surrender rule in place.

At 370 the surrender rule and dollars sales continue.

Exports of Apparel & Textiles fell 13.19 percent to 441.89 million dollars in October 2022.

Tea exports in October fell 0.76 percent to 108.7 million US dollars.

“We have to be very agile these days because markets are changing and our traditional markets, especially the western markets going forward might be disrupted a little more,” another official at EDB said.

“So we have to now look at alternate markets because there is a global disruption in exports and imports and the only way out is to find other markets.”

Export earnings from Rubber based products have decreased by by 6.10 percent to 86.3 million dollars, EDB said exports of pneumatic & Retreated Rubber Tyres & Tubes did not perform well.

Coconut products fell 7.12 percent to 72.41 million dollars.

Export of Seafood dipped by 20 percent to 19.56 million dollars. Crabs exports have done well, EDB said.

Source: Economy Next

The Economist : Prediction on Sri Lanka

Elections are likely to be held in Sri Lanka well before the 2024 deadline, the British weekly newspaper, The Economist has predicted.

According to the prediction, Sri Lanka’s economy will contract, but by less than in 2022.

The prediction has been made in The Economist’s new publication, “The World Ahead 2023”.

“President Ranil Wickremesinghe, who assumed the presidency in July 2022, will struggle to confront the public discontent that forced the resignation of his predecessor Gotabaya Rajapaksa,” the report said.

The report also points out that protesters see Ranil Wickremesinghe as a stooge for the Rajapaksa clan, particularly since he chose Dinesh Gunawardena as the Prime Minister, an ally of the Rajapaksa family.

“Protests and strikes will weigh on the government and elections are likely well before the 2024 deadline” it added.

The Economist’s other predictions include:

GDP growth : – 0.2%

GDP per head : US$ 4,230

Inflation : 66.4%

Budget Balance (%GDP) : – 4.2

Population : 21.7m

Source: Newswire

Rishi Sunak; why SL did not have a Tamil or Muslim as President?

Britain now has a British Asian, Hindu Prime Minister, though Rishi Sunak is whiter than White in his policies and richer than the British Royalty. That would make, at least those who see beyond the colour of the skin, question whether the new Prime minister is a representation of the average British Asian life.

The rise of Rishi Sunak to the helm of the Conservative Party – he dodged a membership vote thanks to Penny Mordaunt’s last-minute withdrawal from the race, which could otherwise have produced quite a different result – has made many ponder as to why Sri Lanka cannot have a Tamil or Muslim prime minister or a president.
Many commentators have blamed the perceived ethno-nationalistic nature of the Sri Lankan state, a yet another perceived act of discrimination at the hand of the state. Though, not being able to get elected as the head of the state through a majority vote is not necessarily a grievance. At best it is an aspiration. Unfulfilled.
But, why didn’t Sri Lanka have an ethnic minority member as the head of the state or the head of the government?
Probably, the issue is not with the structure – or the state, but with the strategy.

One might start looking at how those who succeeded in breaking this glass ceiling did it elsewhere. Rishi Sunak did not contest from the ‘British Indian Party’, but under the Tories. Barak Obama did not run under the Black Panthers, but from the Democratic Party, the mainstream political parties in a duopoly of political systems, that focused on national issues, much less on particular ethnic or religious aspirations.

In contrast, the minority political leaders in Sri Lanka have historically found it more electorally convenient to form race-based political parties. That it was a reaction to the perceived ethno-nationalism of the Sinhalese is the standard argument, with the 1956 electoral victory of SWRD Bandaranaike and subsequent Sinhala-only Act, being described as the watershed events in majoritarian politics.

However, progenitors of ethnic Tamil Nationalist politics, All Ceylon Tamil Congress (ACTC) – founded in 1944, and Illangai Tamil Arasu Kachchi (Federal Party) in 1949, were in politics long before Bandaranaike defected from the UNP and formed the SLFP in 1951. GG Ponnambalam, the ACTC leader, campaigned for guarantees of 50-50 representation for minorities under the Soulbury Constitution. The ACTC then joined DS Senanayake’s UNP-led government, but his detractors within ACTC, led by SJV Chelvanayagam detested the collaboration with the Sinhalese political parties and parted ways to form the Federal Party in 1949.

Ethnic Tamil politics in the early stage was not a reaction to Sinhala Buddhist majoritarianism, as it is often alleged, it is in-built into the Dravidian social-political exceptionalism, they adopted as the governing ideology. That effectively set off a race to the bottom as the competitors for the Tamil vote schemed to present themselves as more nationalistic than the other, until three decades down the line, the LTTE prevailed as the sole representatives of the Tamils.

Also, the ethnic minority politics at that stage was a reaction to the demographic reality as the minority elites feared being submerged by a numerically large Sinhalese Buddhist majority in the newly independent state. The state building also entailed the rearrangement of the state for all its people to benefit from it, which itself had its toll over time, especially on the disproportionate representation of Northern Tamils in various aspects of the state, ranging from bureaucracy to standardization of the university admission. Though the latter has been cited as ethnically motivated, Sri Lanka is not the only country to opt for affirmative action to provide more equitable opportunities in education.

The British tradition of divide and rule might also have its effect. A small group of elites who thrived in that system, rather than assimilating to the new state, thought to perpetuate the old model by other means. Thus their unfilled aspirations were masqueraded as grievances and the indifference of the majority Sinhala-dominated parties to these demands hardened their struggle, finally leading to the Vattukkottai resolution, a separatist campaign and finally the LTTE terrorism. None of that makes you a palatable candidate for the majority if you stand for the dissection of the state.

That is not to say, minorities have not succeeded in politics. From Sirimavo Bandaranaike’s influential education minister Badiuddin Mahmood to a host of UNP stalwarts, ranging from ACS Hameed, and Bakeer Marker to MH Mohammed were influential within their parties and in national politics. Colombo Municipal Council has had more ethnic minority mayors, long before Sadiq Khan became the London Mayor in 2016.

Also, it is disingenuous to dismiss the two main political parties, especially the UNP or the SJB, as ethno-majoritarian, though any political party worth its salt should be mindful of the demographic reality of its electorate. Until the breakup of the UNP, Kabir Hashim, a Muslim was the General secretary of the UNP.

Then there is another problem. Ethnic minority members who managed to rise above the ethnic lines and were adopted by the Sinhalese mainstream have often been discredited and delegitimized by some of the most articulate quarters of minorities, the type of people foreign embassy staff consult to have a grasp of Sri Lankan politics.

Consider Lakshman Kadirgamar or even Muttiah Muralitharan – or now Ali Sabri, the latter, though one could detest his political party of choice – Pohottuwa – is a true Sri Lankan patriot than most Sri Lankans. The problem with the ethnic minority political project is that Sri Lankan patriotism is made subordinate to ethnic allegiance.
There is an interesting element in the British Asian upstaters of the Conservative Party. Rishi Sunak, Suella Braverman and Priti Patel are more anti-immigrant Brexiters and devotees of British colonial legacy than average White British. That might be a political survival instinct or an engrained trait of the colonial experience, where some ethnic minorities in the British Colonies were more than happy to play the second fiddle to the White Europeans, as long as they are above the majority. This illustrious list includes young Mohandas Gandhi in South Africa, who in a series of letters to the colonial administration ranted at the ‘mixing of Indians with native savages.’
Recently, Aragalaya offered an example of non-racial political activism. A few, except an extreme bigot, cared about the race or religion of Aragalaya activists, indeed, much less than their long hair and uncut beards. Many of the prominent and vocal members in Aragalaya were Muslims and Tamils and were accepted as leaders for their commitment to the cause, much less for their race.

That non-racial inclusivity and activism could be the model if Sri Lanka is to have a minority prime minister or a president.

Written by Ranga Jayasuriya

Sri Lanka to send delegates to IMF & WB Annual meeting

Sri Lanka has decided to send a delegation for the annual summit of the International Monetary Fund and the World Bank.

The 2022 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) will take place in person from Monday, October 10, through Sunday, October 16 in the IMF and World Bank Group headquarters, in Washington DC.

Sri Lanka’s delegation will be led by Acting Finance Minister Shehan Semasinghe.

He said the Governor of the Central Bank of Sri Lanka, the Finance Secretary and several others will accompany him.

The Acting Finance Minister said that the 2022 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) will be of paramount importance for Sri Lanka to restrucutre its debt, and also obtain financial assistance from the IMF.

Source: News 1st

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SJB goes to court challenging High-Security Zone gazette

The Samagi Jana Balavegaya filed Fundamental Rights applications with the Supreme Court challenging the gazette issued by President Ranil Wickremesinghe declaring High-Security Zones in Colombo.

The applications were filed by SJB MPs Harshana Rajakaruna, and Mujibur Rahuman on Wednesday (28).

The FR applications name the Attorney General as the respondent and note that the President has no right to declare High-Security Zones, and no law allows the President to do so.

The petitioners request the Supreme Court to rule that the conduct of the President had violated the Fundamental Rights of the people of Sri Lanka, and thereby issue an order to invalidate the said gazette.

Source: News 1st

President holds bilateral talks with Japanese PM

President Ranil Wickremesinghe held bilateral talks with Japanese Prime Minister Fumio Kishida in Tokyo today (Sep. 28), the President’s Media Division (PMD) says.

The meeting took place at Akasaka Palace in Tokyo.

The Japanese Prime Minister warmly welcomed President Wickremesinghe and extended his best wishes on his appointment to the Office of President.

The two leaders held discussions on further strengthening relations between the two countries.

President Wickremesinghe left the island on Sep. 26 on an official visit to Japan and the Philippines.

During his two-day official visit to Japan, the President also attended the funeral ceremony of former Prime Minister of Japan Shinzo Abe to pay his last respects to the assassinated leader.

After concluding his Japan visit, President Ranil Wickremesinghe is scheduled to leave for the Philippines later today to preside over the meeting of the Governors of the Asian Development Bank (ADB).

During his visit to the Philippines, President Wickremesinghe will hold discussions with the President of the Philippines Ferdinand Romualdez Marcos Jr. and the President of the Asian Development Bank (ADB) Masatsugu Asakawa.

The President is scheduled to return to the island upon completion of his official tour on September 30.

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Sri Lanka plans to sell tickets in US dollars to tourists: Minister

Sri Lanka is considering selling tickets to tourists in US dollars in a bid to raise money to import spare parts Transport Minister Bandula Gunawardana said amid the worst currency crisis in the history of the island’s intermediate regime central bank.

“I plan to ask permission from the central bank to charge for tickets in US dollars,” Minister Gunawardana said.

“Hotels charge in US dollars, I do not see why we cannot.”

Sri Lanka’s Department of Railways is finding it difficult to import spare parts for its old engines, he said.

Minister Gunawardana hiked fares to half that of buses and has sharply reduced operations losses, he said.

Minister Gunawardana has also proposed to call international tenders to sell metal scrap to raise dollars for Sri Lanka Railways.

Related

Sri Lanka railways seek forex from scrap metal amid currency crisis

Sri Lanka has an intermediate regime central bank (a soft-peg) which collapses and forex shortages emerge whenever aggressive open market operations are employed (liquidity is injected) to artificially suppress interest rates.

Sri Lanka’s economists got the power to print money in 1950 through US designed Latin America style, though they were not explicitly given the power to depreciate the currency, as the agency was required to maintain a peg to gold at 1.99 grains of gold.

However the rules were relaxed in 1980s, after the US dollar was floated in the 1970s and it was made earlier to depreciate the rupee to compensate for monetary policy errors under so-called basket, band, crawl (BBC) policy that was peddled by Washington based Mercantilists, critics say.

Latin America style central banks also started to default from the 1980s.

Once the power was given, economists are now unwilling to give up the power to print money and depreciate the currency though calls are intensifying to harden the peg block monetary instability.

Over the year economists have lobbied politicians to control and exchange control and import control laws and curtail the economic freedoms of citizens during successive currency crises and money printing depleted reserves.

Money laundering laws were deployed against citizens who use US dollars in the current crises to enforce a state monopoly in money, legal tender.

Source: Economy Next

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UNHRC sessions: Sri Lanka struggles to gain confidence

Sri Lanka’s stance of advocating for a domestic truth-seeking mechanism earlier this month at the 51st Session of the UN Human Rights Council (UNHRC) to address long-standing allegations of rights violations and war crimes will do little to build international and local confidence in meaningful action, experts told The Sunday Morning.

Sri Lanka’s hurried submission to the international watchdog this year is bound to create confusion within the ranks of the international community whose assistance the bankrupt nation desperately needs, as the interim Government led by President Ranil Wickremesinghe is seen to backpedal on Resolution 30/1, which Sri Lanka co-sponsored at the 30th Session of the UNHRC in 2015, when Wickremesinghe was the then Prime Minister.

Sri Lanka’s stance at the UNHRC came in the backdrop of a Staff-Level Agreement between the Government and the International Monetary Fund (IMF), which, if approved, will provide a much needed $ 2.9 billion conditional assistance programme over a four-year period. The IMF agreement is viewed as a confidence-building mechanism, opening doors for Sri Lanka to enter a dialogue with its creditors to negotiate debt restructuring, and providing an opportunity to seek bridging finance needed for the nation of 22 million to recover from an unprecedented economic crisis.

Addressing the UNHRC session in the wake of a scathing report by the Office of the United Nations High Commissioner for Human Rights (OHCHR), which for the first time included concerns about economic crimes that may have contributed to the ongoing crisis, Sri Lankan Minister of Foreign Affairs Ali Sabry stated: “The Government will endeavour to establish a credible truth-seeking mechanism within the framework of the Constitution. The contours of such a model that would suit the particular conditions of Sri Lanka are under discussion.”

Minister Sabry, who is a former Minister of Justice in the Gotabaya Rajapaksa Government, argued that if reconciliation and human rights in Sri Lanka were to be meaningful and sustainable, they must be carried out in cooperation with the country, being compatible with the aspirations of its people, and in accordance with its constitutional framework.

“The international community is aware that unconstitutional and intrusive external initiatives have repeatedly failed to yield meaningful results on the ground and are in effect an unproductive drain on member state resources,” Sabry stressed.

The Foreign Minister called on the UNHRC to acknowledge “actual progress on the ground” and to assess the situation in a realistic manner.

“It is 13 years since the end of the conflict in Sri Lanka, and since then a new generation has emerged with their own aspirations. While issues of reconciliation and accountability are being comprehensively addressed through a domestic process, it is time to reflect realistically on the trajectory of this resolution which has continued on the agenda of the Council for over a decade and undertake a realistic assessment on whether it has benefited the people of Sri Lanka. There is a need to acknowledge actual progress on the ground and support Sri Lanka,” Sabry stated.

However, what such a domestic truth-seeking mechanism may look like remains unknown, with no guiding document nor dialogue from the Government on the matter made available to the public.

The Ministries of Justice and Foreign Affairs would not comment on the matter, with both Ministers overseas on official visits. Attempts by The Sunday Morning to contact Minister Sabry and Justice Minister Dr. Wijeyadasa Rajapakshe regarding how the Government plans to enact a domestic mechanism proved unsuccessful.

Delaying tactics weaken credibility?

When asked about the Government’s continued stance on a domestic mechanism, former Faculty Member at the University of Colombo Department of Political Science and Public Policy and Centre for Policy Research and Analysis Founder-Director Prof. Jayadeva Uyangoda told The Sunday Morning that the Government was aware that it lacked credibility in the eyes of the international community and political will locally to effect a meaningful truth-seeking mechanism, calling the stance expressed at the UNHRC sessions a delaying tactic and a diplomatic tool to secure support from other countries to face a vote at the sessions.

“People, locally and internationally, don’t trust the words of the Government. I think the Government also knows that by making these empty promises, it may be able to persuade some countries to vote in its favour at the UNHRC. If we are to take the Government’s stance on truth-seeking seriously, it should prepare the background within the country to accept it.

“In the past, there has been a lot of opposition to truth-seeking by the bureaucracy, Sinhala nationalists, and some segments of the military. The Sri Lanka Podujana Peramuna (SLPP) which is a partner of this Government has opposed it. This Government hasn’t done anything to initiate a new discussion about this mechanism locally before going to Geneva and making these promises. Therefore, there is very little credibility in what the Government is doing in Geneva [UNHRC sessions]. This is very unfortunate because a truth-seeking mechanism is one of the most important steps towards reconciliation and democratisation. However, every government has been misusing it,” Prof. Uyangoda observed.

According to Prof. Uyangoda, the Government’s annual representation at the UNHRC is a delaying tactic due to lack of political will to pursue meaningful reconciliation and justice mechanisms. He charged that the Government’s “annual pilgrimage to Geneva” uses lofty undertakings to pacify Western nations which pressure Sri Lanka on human rights issues.

“I think this time is no different. With the economic crisis, Sri Lanka will likely try to gain a little sympathy from the West as plan A, while rallying countries like Russia, China, and others to vote against any resolution, pointing out that if a precedent is set with Sri Lanka, they will be targeted next. That is plan B.”

Commenting on the progress on human rights since 2015, Prof. Uyangoda argued that the Yahapalanaya Government had not spoken on the issue with a unanimous voice and had faced much resistance. He stressed that over the years, Sri Lanka had been making excuses for the slow progress or lack thereof on truth-seeking, reconciliation, and peacebuilding, adding that each government used a “culture of commissions” to prolong the issue and avoid being decisive on human rights issues.

He also said that there were serious obstacles to a truth-seeking mechanism, since after the war, many bureaucrats, policymakers, and senior members of the armed forces with rights violations allegations against them remained in powerful positions, making it difficult to proceed with a meaningful mechanism.

Ranil’s backflip?

Sri Lanka risks losing what little credibility it has in the international arena with the Foreign Minister’s statement, a former diplomat who was attached to the Permanent Mission of Sri Lanka in Geneva told The Sunday Morning on condition of anonymity.

“The problem is that the Foreign Minister has now said that Sri Lanka is against the 2015 resolution which we as a country co-sponsored. But the current President, who was the then Prime Minister of the Yahapalanaya Government, is the man who wanted Sri Lanka to co-sponsor it. The incumbent President took this step, along with late Minister Managala Samaraweera, and Wijeyadasa Rajapakshe was also a part of it.

“Today, we see Ali Sabry, the former lawyer of the Rajapaksas, going to Geneva with Wijeyadasa Rajapakshe and saying otherwise. Having the same people who co-sponsored the resolution now backtrack creates confusion among the international community, especially the Core Group. It also raises the question of who is really in charge of Sri Lanka at the moment,” the diplomat said.

He pointed out that some of the people who would be most affected by Resolution 46/1 were those in the Rajapaksa family and several key officials in the defence establishment. “It is hard to contemplate why the Government is pushing this stance and doing so now at this stage, when we need international assistance. If this is the Government’s stance, has Wickremesinghe abandoned his vision for reconciliation? Has he been reborn?” the former diplomat questioned, adding that such mixed messaging to the international community would not contribute to clarity and would make Sri Lanka look unreliable.

Following Resolution 30/1 in 2015, a number of political groups and political commentators pushed the narrative that ‘foreign participation’ in truth-seeking mechanisms would amount to foreign judges sitting in judgement over Sri Lankans accused of war crimes and rights violations. The narrative led to erosion of support among the public for any international involvement in a truth-seeking or justice process.

However, according to former Yahapalanaya Minister Dr. Harsha de Silva, the ‘foreign participation’ mentioned in 30/1 was not envisaged as what was spun through such narratives.

“At no time was the co-sponsored Resolution 30/1 a ‘hybrid system’. What was there was ‘with the participation’ of foreign judges or prosecutors. I recall very well discussing this with late Minister Mangala Samaraweera. His view was that ‘participation’ was a broad term. Certain people, for their political interest, claimed that it would have foreign judges sitting in judgement, but there was no such thing. It was an extreme take on the word ‘participation’.

“On the other hand, you have ‘observers’. There have been occasions, some during when Mahinda Rajapaksa was Prime Minister, where there were observers. Furthermore, in the resolution, it clearly states that any mechanism would be done within the constitutional framework of Sri Lanka. There are no provisions for foreign judges to deliver judgements within the Constitution of Sri Lanka. So, these narratives were a complete manipulation of a word. In defence of Mangala I must say this. Of course, Ranil Wickremesinghe sanctioned this. And he [Wickremesinghe] must be truthful to what he advocated at the time,” de Silva told The Sunday Morning.

Lack of credibility

Bhavani Fonseka, a lawyer and rights activist with the Centre for Policy Alternatives (CPA) told The Sunday Morning that the Yahapalanaya Government in 2016 had appointed a Consultation Task Force which, following a countrywide survey, reported that there was a desire from the public for some international involvement in a truth-seeking mechanism due to a trust deficit in local institutions.

“They appointed a Consultation Task Force in 2016, which went around the country, and one of their key findings was that people wanted a hybrid mechanism because they didn’t trust the domestic system. They felt there were failures in the domestic system and that foreign judges needed to be involved in the process,” Fonseka said, adding that it had been a recommendation made when Ranil Wickremesinghe was Prime Minister.

Fonseka questioned why the present Government, with Wickremesinghe at the head, was taking a contradictory stance. “It doesn’t build confidence within Sri Lanka or internationally. The Government is now sending a different signal. I think if they are very clear in their message and communicate in one voice, the international community will listen. But this doesn’t seem to be happening.”

No confidence in domestic mechanism

Speaking to The Sunday Morning, Global Tamil Forum (GTF) Spokesman Suren Surendiran stated that given the Government’s actions regarding truth-seeking and reconciliation over the last decade, they did not have confidence in a domestic mechanism to deliver justice for the victims of alleged war crimes.

“Going by the track record over the last 13 years since the end of the armed conflict, I am not very confident at all! Successive governments have promised domestic mechanisms and made various commitments to victims, locals, bilateral partners like India, as well as the international community at the UN which have not been fulfilled at all, but intended to fool all concerned. Sri Lanka has backtracked publicly from some of these commitments. For example, it withdrew from co-sponsorships of resolutions at the UNHRC.

“Also, the truth-seeking mechanism is only one of the four transitional justice pillars. Although it is an important initiative, on its own it will not resolve or be accepted as part of serving justice to victims. Addressing accountability through a credible international mechanism needs to be part of the programme. That’s what the 2015 UNHRC Resolution 30/1 was aiming to address.

“However, successive governments kept deferring or intentionally avoiding addressing this. Hence, the Resolution 46/1 of 2021 went with the recommendations of the High Commissioner to address accountability via collecting and preserving evidence and serving justice through other international mechanisms, including universal jurisdiction. We know how successive governments have pathetically tried to hoodwink the international community with a half-baked Office on Missing Persons (OMP) and other reparation ideas.

“Until Sri Lanka acknowledges that international laws were breached during the war, especially towards the end of the war, and charges persons who had command responsibility, including the then political, civil, and defence service leaders, the international community will not let it go. This is not just to punish for alleged crimes committed but also to ensure that there won’t be any such breaches of international law elsewhere in the world, in the future.

“Instead of punishing war criminals, in Sri Lanka, they are regarded as war heroes, and are promoted or given high posts in State institutions. On rare occasions where courts convict these criminals, they are evidently pardoned by successive presidents. Against this backdrop, who will and why should anyone have any confidence or faith that any such local mechanisms will address accountability or serve justice to victims?” Surendiran questioned.

Source: The Sunday Morning

Crisis-hit Sri Lanka likely to resume China FTA talks along with India’s CEPA: sources

Sri Lanka’s government under President Ranil Wickremesinghe is likely to resume stalled talks on a Free Trade Agreement (FTA) with China along with India’s Comprehensive Economic Partnership Agreement (CEPA), two sources said, as the island nation struggles to find a way out of a currency crisis and sovereign debt default.

Sri Lanka is caught in a geopolitical cold war between China and India with the backing of the United States, analysts say. That cold war has led Sri Lanka to be extremely cautious in dealing with both Asian powers and even to forego some investment opportunities.

However, the economic crisis and sovereign debt default have compelled the island nation to look into all available avenues to ensure more foreign inflows to move away from the crisis.

Wickremesinghe last week told visiting Administrator of the United States Agency for International Development (USAID) Samantha Power that he is focusing on an export-oriented, very competitive market economy for Sri Lanka as the country has the opportunity to supply to South Asia, Southeast and east Asia.

Four days after the meeting with Power, President Wickremesinghe at an official function said the FTA would be revived and upgraded into a comprehensive economic and technological partnership and that his government would focus on the Indo-Sri Lanka projects that were delayed.

“It does not mean Sri Lanka will go only with India. The Chinese FTA talks also will be resumed,” a source close to the president and who is aware of the new developments on international trade told EconomyNext.

Deep pockets

Amid protests by trade unions, Sri Lanka under Wickremesinghe’s premiership in the Yahapalana government suspended a proposed CEPA with India in December 2015 and attempted to enter a new Economic and Technology Cooperation Agreement (ETCA) in 2016. But Wickremesinghe had to suspend ETCA as well in the face of stiff resistance from trade unions.

Similarly, Wickremesinghe had to temporarily stop FTA talks with China in 2018 under the last administration because Beijing disagreed with Colombo’s demand for a review of the deal after 10 years.

“Sri Lanka needs China’s deep pockets and India’s healthy relationship. So one country cannot be compromised with another. They are both important for Sri Lanka to get out of the current crisis,” the source said.

Wickremesinghe publicly said last week that he wants to remove all barriers to trade in negotiations with India.

“I think the future relations of India with its neighbours will be determined by trade integration. Trade integration gives an economic base. Common economic base is a prerequisite for a better national security and better political relations. So, keeping this in mind, we are taking two major steps,” President Wickremesinghe said addressing an event to mark the 75’th anniversary of independence of India.

President Wickremesinghe, however, has so far not commented on the FTA with China.

The Chinese embassy in Colombo declined to comment on resuming FTA talks.

“Both FTA and CEPA would go together,” another source who has knowledge on the FTA with China told EconomyNext.

Source: Economy Next

Military deployed again to maintain law and order

The military has been deployed again to maintain law and order, through a gazette notice issued by President Ranil Wickremesinghe.

The gazette notice issued by the President calls out with effect from today (September 22, 2022) all the members of the Armed Forces for the maintenance of public order in the country.

The security forces had been deployed every month over the past several months to maintain law and order in the entire country.

Human rights lawyer Ambika Satkunanathan tweeted saying that the President has once again used Section 12 of the Public Security Ordinance to call out the armed forces to maintain public order.

She said the President has to only issue a gazette every month to declare the de-facto state of emergency.

Source: Colombo Gazette

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