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Modi meets delegation of Tamil leaders in Sri Lanka

Posted on April 5, 2025 | by TELO Admin

Indian Prime Minister Narendra Modi met a delegation of Tamil political party representatives in Colombo, during his ongoing visit to Sri Lanka.

The Head of State has conveyed his condolences on the passing of former Tamil National Alliance (TNA) leaders R. Smapanthan and Mavai Senathirajah.

Modi said he reiterated India’s unwavering commitment to a life of equality, dignity and justice for the Tamil community within a united Sri Lanka, and assured that many projects and initiatives launched during his visit will contribute to their social, economic and cultural progress.

“It is always a pleasure to meet the leaders of the Tamil community of Sri Lanka,” Modi posted on ‘X’ (formerly Twitter).

“Conveyed my condolences on the passing of respected Tamil leaders, Thiru R. Sampanthan and Thiru Mavai Senathirajah, both of whom were personally known to me.”

“Reiterated unwavering commitment to a life of equality, dignity and justice for the Tamil community within united Sri Lanka. Many projects and initiatives launched during my visit will contribute to their social, economic and cultural progress.”

Modi, who is on a three-day visit to Sri Lanka, held bilateral discussions with Sri Lankan President Anura Kumara Dissanayake in Colombo this morning (5). He also met with Sri Lanka’s Leader of the Opposition and Samagi Jana Balawegaya (SJB) leader Sajith Premadasa in Colombo.

While addressing joint press briefing with Dissanayake in Colombo, the Indian PM raised the issue of Tamils in Sri Lanka, saying that he expects the Sri Lankan government to fulfil their aspirations.

Modi on Saturday raised the Tamil issue with Sri Lankan President Anura Kumara Dissanayake, saying that he expects the Sri Lankan government to fulfil the aspirations of Tamils and work in the direction of full implementation of the constitution, and fulfil their commitment of provisional council elections.

PM Modi, in the joint press briefing, also announced that 10,000 houses for the Indian origin Tamil community in Sri Lanka will be completed soon.

Despite the war ending in 2009, the Tamils in Sri Lanka are still awaiting the resolution of certain issues, including those of political rights, devolution of powers, and post-war reconciliation.

As Sri Lanka eyes negotiation Trump to consider ‘phenomenal’ offers for tariffs

Posted on April 4, 2025 | by TELO Admin

US President Donald Trump has said he will consider ‘phenomenal offers’ to reduce tariffs imposed on the rest of the world, as Sri Lanka also eyes negotiations to reduce 44 percent tax that threatens to cripple apparel export firms in particular.

Trump aides had previously said that the tariffs were not negotiable.

Every Country Has Called Us’

“And those tariffs have come in, and every country has called us,” Trump told reporters in Air Force One Thursday.

“That’s the beauty of what we do. We put ourselves in the driver’s seat. If we would have asked some of these countries, almost most of these countries, to do us a favor, they would have said, no, now they’ll do anything for us.”

Sri Lanka’s Deputy Minister for Economic Development Anil Jayantha has said Sri Lanka is planning to talk to the US and try to reduce the Trump tariff. Sri Lanka is prepared to simplify tariffs which are complex, he said.

The 44 percent ‘discounted reciprocal’ tariff against Sri Lanka appears to have been set by dividing the trade deficit with the US with exports from Sri Lanka and halving it.

“The first thing is to try and understand the thinking behind the 44 percent tariff,” Anush Amarasinghe, Managing Director of BPPL Holdings, an exporter of brushware and polyester yarn said.

“Is it solely based on the trade deficit? Have other measures been considered? And then immediately start negotiations.”

Trump himself has said that it would take two years for a manufacturing plant to be set up in the US.

Countries with which the US has a trade surplus, including Singapore, were slapped with a 10 percent tax which appears to be for revenue purposes.

The US is facing a large budget deficit after money printing, inflation from operating an abundant reserve system (aggressive open market operations) and repeated bouts of stimulus recommended by macro-economists.

The US does not have value added tax like Europe and low import duties.

Unequal Taxes

Trump has frequently criticized income tax, which is now the top source of income, and referred to the pre-1913 US where there were higher border taxes and no income tax.

Income tax tend to penalize enterprise and hard work of the public and kill off capital.

Progressive income tax blatantly violates the principle of equal treatment of people before the law, and was unconstitutional in the US before 1913. The US constitution had to be changed to allow a the law to be applied in a discriminatory manner on the people.

The US wants to go back to manufacturing, though the country is now a leader in service and also has a services surplus with the rest of the world.

Analysts say when manufacturing first took off in Europe, there was criticism from nationalists and other ideologues (agrarianism/rural nationalism) who thought agriculture was the most important for a country, just as people think of manufacturing now.

Sri Lanka has just slapped a 15 percent income tax on services exports under an IMF program, killing investable capital while giving fertilizer subsidies to farming which is already protected by high tariffs.

Trump wants to reduce income tax.

Phenomenal

At the AirForce One reporters asked Trump what offers he would consider.

“Well, it depends,” Trump said. “If somebody said that we’re going to give you something that’s so phenomenal, as long as they’re giving us something that’s good.

“For instance, with TikTok as an example, we have a situation with TikTok where China will probably say, we will approve a deal, but will you do something on the tariff?

“The tariffs give us great power to negotiate. Always have. I’ve used it very well in the first administration, as you saw.”

It is not yet clear what countries that do not have anything ‘phenomenal’ to offer can do. Trump is trying to run the US like a private company, which is different from governing a country.

In a private company, mistakes are paid for by shareholders, but mistakes by the government, including by the central bank is paid for by the entire country.

Most East Asian countries which compete with Sri Lanka and had smaller trade deficits with the US in 2024 had ended up with still high and slightly lower tariffs.

Though some exports may survive for some time, Sri Lanka’s apparel industry says it is very vulnerable as the industry is very price competitive.

Sri Lanka to Assess Impact of Trump’s New Tariffs

Posted on April 4, 2025 | by TELO Admin

A committee appointed to study the impact of U.S. President Donald Trump’s newly imposed tariffs is set to meet today (4).

Minister (Professor) Anil Jayantha stated that the committee will discuss the potential effects of these tariff policies on Sri Lanka’s economy and the necessary measures to mitigate any adverse impacts.

The Committee appointed to explore necessary measures and submit recommendations to the Government regarding the new US tariff system met with President Anura Kumara Dissanayake kast afternoon (3) at the Presidential Secretariat.

During the discussion, an in-depth review was conducted on the background and basis of these tariffs, as well as the economic challenges that small economies like Sri Lanka may face due to the imposition of high-value tariffs.

A comprehensive discussion was also held on the course of action Sri Lanka should take in response to the emerging situation and the necessary steps to be implemented moving forward.

Representing the Committee, Senior Economic Advisor to the President Duminda Hulugamuwa, Secretary to the Ministry of Finance Mahinda Siriwardana, Governor of the Central Bank Dr. Nandalal Weerasinghe, Secretary to the Ministry of Trade A. Wimalaneththiraja, Chairman of the Export Development Board Mangala Wijesinghe, Senior Director General (Bilateral) at the Ministry of Foreign Affairs Dharshana Perera, Chief Economic Policy Advisor to the Ceylon Chamber of Commerce Shiran Fernando, Group Chief Executive Officer of Brandix Ashroff Omar, Co-Founder of MAS Holdings Sharad Amalean, Managing Director of Lanka Garments Saif Jafferjee and Nilanthi Weliwe representing Michelin Lanka Pvt Ltd were present at the meeting.

Additionally, Minister of Labour and Deputy Minister of Economic Development Dr.Anil Jayantha Fernando and Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma also participated in the discussion.

Professor Anil Jayanta Fernando indicated that the committee’s recommendations will likely be presented to the President today (4), after which further steps will be taken.

Indian Prime Minister Modi to arrive in Sri Lanka today

Posted on April 4, 2025 | by TELO Admin

Indian Prime Minister Narendra Modi is set to arrive in Sri Lanka today (04) for a three-day state visit, marking a significant diplomatic engagement between the two nations.

Modi’s visit comes at the invitation of President Anura Kumara Dissanayake and will be accompanied by India’s External Affairs Minister, S. Jaishankar. The official welcoming ceremony is scheduled to take place tomorrow (April 05) at Independence Square in Colombo.

During his stay, Prime Minister Modi will engage in high-level bilateral discussions aimed at strengthening ties between Sri Lanka and India. A series of key agreements are expected to be signed across multiple sectors, including energy, digital transformation, security, and healthcare.

One of the major highlights of the visit will be the inauguration of the Sampur Solar Power Plant project, a joint initiative between Sri Lanka and India, aimed at bolstering the island’s renewable energy capacity.

As part of his itinerary, the Indian leader is also set to pay homage to the sacred Sri Maha Bodhi in Anuradhapura.

Meanwhile, Sri Lanka’s security forces have implemented a comprehensive security plan for the high-profile visit. The Colombo-Katunayake Expressway and Baseline Road will be temporarily closed time to time from 6:00 p.m. to 10:00 p.m. today, according to Police Media Spokesperson SSP Buddhika Manathunga.

CID probes 22 ex-ministers and MPs who benefited from President’s Fund

Posted on April 3, 2025 | by TELO Admin

The Financial and Commercial Crime Investigation Division (FCCID) of the Criminal Investigation Department (CID) has initiated an investigation into 22 former Ministers and Members of Parliament (MPs) concerning funds they allegedly received from the Presidential Fund between 2008 and 2024.

Police said that 22 files related to the disbursement of these funds were being examined by the CID.

Preliminary investigations revealed that over Rs. Rs. 100 million have been received by the twenty two former Ministers and MPs in various amounts, and investigations are being carried out as to whether any irregularity has occurred in receiving the money.

As part of the investigation, CID officers have sought approval from the Fort Magistrate’s Court on April 2, 2025, to access details of the checks issued from the Presidential Fund account.

Earlier, Minister Nalinda Jayatissa revealed in Parliament that 36 former Ministers and MPs had received Rs. 112.5 million from the Presidential Fund between 2005 and 2024.

Among those named, former Minister Keheliya Rambukwella received Rs. 11 million, former Minister Dr. Rajitha Senaratne received Rs. 10 million, late Prime Minister D.M. Jayaratne received Rs. 30 million, and former MP Ranjith De Zoysa received Rs. 18 million.

Other individuals who reportedly received financial assistance include Vasudewa Nanayakkara, Widura Wickremanayake, Wimala Dissanayake, Sumeda Jayasena, S.B. Nawinna, John Amaratunga, Sarath Amungama, P. Harrison, Piyasena Gamage, Manoj Sirisena, P. Dayaratane, and S.C. Muthukumarana.

India-Sri Lanka friendship to be reviewed during official visit: PM Modi

Posted on April 3, 2025 | by TELO Admin

Indian Prime Minister Narendra Modi says that during his official visit to Sri Lanka the two countries will review the multifaceted India-Sri Lanka friendship.

Issuing a statement ahead of his visit to Thailand and Sri Lanka, Prime Minister Modi stated that his visit to Sri Lanka will take place from April 04 until April 6, and that this visit comes after the successful visit of President Anura Kumara Dissanayake to India.

“From Thailand, I will pay a two day visit to Sri Lanka from 04-06 April. This follows the highly successful visit of President Disanayaka to India last December”, he added.

Furthermore, the Indian Prime Minister expressed that the two countries will have the opportunity to review progress made on the joint vision of ‘Fostering Partnerships for a Shared Future’ and provide further guidance to realise the shared objectives.

“I am confident that these visits will build on the foundations of the past and contribute to strengthening our close relationships for the benefit of our people and the wider region”, the Indian Prime Minister noted.

Impact of Trump 44% reciprocal tariffs on Sri Lanka’s exports

Posted on April 3, 2025 | by TELO Admin

The higher trade tariffs imposed by the United States on Sri Lanka can put a significant number of jobs in the country’s apparel industry at risk in the near future,

warns Professor Wasantha Athukorala from the Department of Economics and Statistics at the University of Peradeniya.

On Wednesday, US President Donald Trump announced a sweeping set of reciprocal tariffs, imposing a baseline 10% tax on all imports and significantly higher rates on dozens of countries with which the US runs trade deficits.

As a result, Sri Lanka now faces the 6th highest tariff rates in the world—44%, a sharp increase from the previous 12.2% tariff rate.

Currently, 25% of Sri Lanka’s total exports—primarily apparel—are destined for the US. Reports indicate that Sri Lanka’s export earnings from the US amounted to USD 3 billion in 2024, with USD 346 million earned in January 2025 alone.

However, Prof. Athukorala warns that these high tariffs could severely impact Sri Lanka’s exports, particularly the apparel industry, as the US remains a key market for the country’s textiles.

He cautioned that export income could decline significantly, posing a serious threat to employment in the sector.

Furthermore, he stressed that if Sri Lanka’s exports take a hit, a large number of workers in the apparel industry could lose their jobs in the near future.

Tamil Nadu Assembly passes unanimous resolution to retrieve Katchatheevu island

Posted on April 3, 2025 | by TELO Admin

The Tamil Nadu Assembly unanimously passed a resolution urging the Union government to take steps to retrieve Katchatheevu Island from Sri Lanka. Opposition parties of AIADMK and the BJP also supported the motion.

The resolution emphasised the challenges faced by Tamil Nadu’s fishermen due to ongoing arrests and seizures by the Sri Lankan Navy. Chief Minister MK Stalin led the discussion on the House floor, insisting that the only permanent solution was the retrieval of Katchatheevu and emphasised the ongoing plight of Tamil Nadu fishermen.

He urged the Union Government to amend the agreement with Sri Lanka and called on the Prime Minister, who was scheduled to visit Sri Lanka, to discuss the issue with its leaders. “This House unanimously urges the Union Government to take all steps to retrieve Katchatheevu and secure the release of our fishermen,” Stalin declared.

“The Union government seems to forget that Tamil Nadu fishermen are Indian fishermen as well,” he said, pointing out that despite Prime Minister Narendra Modi’s 2014 assurance that fishermen would not come under attack, they continued to face arrests and the seizure of their boats.

“In 2024 alone, over 500 fishermen have been arrested—that is two per day. The External Affairs Minister himself admitted in March that 97 fishermen are still in Sri Lankan prisons. This must stop,” Stalin said while presenting the resolution.

BJP MLA Vanathi Srinivasan supported the resolution but questioned why the Dravida Munnetra Kazhagam (DMK) had not taken action when it was in power at the Centre.

“We believe that only PM Modi can retrieve Katchatheevu,” she stated, while also pointing out, “But why didn’t the DMK raise this issue when they were in power at the Centre for decades?”

She referenced an RTI reply stating that Tamil Nadu’s Chief Minister–Stalin’s father M Karunanidhi–at the time was aware of the island’s transfer and was expected to “keep reactions low-key.”

Stalin, however, rejected claims that the DMK had consented to giving away the island in 1974, stating, “DMK then opposed the decision and even convened an all-party meeting against it.”

Special committee to assess implications of UK sanctions

Posted on April 3, 2025 | by TELO Admin

The Cabinet of Ministers has decided to appoint a committee comprised of ministers to submit a report with recommendations to the Cabinet of Ministers related to the decisions taken by the United Kingdom to impose sanctions on 4 Sri Lankan individuals including General Shavendra Silva recently.

Cabinet Spokesman Minister Dr. Nalinda Jayatissa said the attention of the Cabinet of Ministers have been drawn on the decisions taken by the UK government to impose sanctions on 4 Sri Lankan individuals recently.

He stated that therefore, the Cabinet of Ministers has decided to appoint a committee comprised of ministers to submit a report with recommendations to the Cabinet of Ministers on the further measures to be taken after studying the facts in the regard and to empower the committee to obtain service of any officer/intellect deemed to have subject expertise in the relevant field and considered essential.

The committee is comprised of ministers with the following composition:

• Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath

• Minister of Justice and National Integrity, Harshana Nanayakkara

• Deputy Minister of Defence, Aruna Jayasekara

US State Dept. urged to bring Sri Lanka under Special Watch List

Posted on April 2, 2025 | by TELO Admin

The United States Commission on International Religious Freedom (USCIRF) has, in its this year’s (2025) annual report,

recommended that the US State Department lists Sri Lanka on a ‘Special Watch List’ based on religious freedom-related conditions recorded last year (in 2024), which include allegedly engaging in or tolerating severe violations of religious freedom (pursuant to the International Religious Freedom Act).

The report, issued last week, further recommended to the US Congress to raise ongoing religious freedom issues through the Congressional Caucus on Ethnic and Religious Freedom in Sri Lanka, foreign affairs committee hearings, resolutions, letters, and congressional delegations to Sri Lanka. Another recommendation was to prioritise meetings with the Department of Archaeology and the Ministry of Buddhasasana, Religious, and Cultural Affairs during congressional delegations, and specifically raise concerns over their expropriation of shared or disputed religious sites.

“Incorporate religious freedom concerns into the US-Sri Lanka Partnership Dialogue, including the need to repeal or significantly reform the Prevention of Terrorism (Temporary Provisions) Act as amended to require a higher threshold of evidence for charges, a definition of ‘terrorism’ that complies with international standards, and safeguards against abuses of religious freedom,” it was further recommended to the US Government.

“In Sri Lanka, Hindu and Buddhist nationalist groups targeted Muslims throughout the year with threats, intimidation, and coercion,” the report claimed.

Among the other countries that were recommended to be included in a Special Watch List along with Sri Lanka were Egypt, Indonesia, Iraq, Kazakhstan, Kyrgyzstan, Malaysia, Syria, Turkey, and Uzbekistan.

(Sumudu Chamara – The Morning)