Category: Breaking News

The JVP-led NPP government has decided against granting service extensions to current commanders of the Army, Navy and Air Force, as well as any other officer scheduled to retire on 31 Dec., 2024, according to sources.

Army Commander Lt. Gen. Vikum Liyanage and Navy Commander Vice Admiral Priyantha Perera are on their second extensions, whereas Air Force Commander Air Marshal Udeni Rajapaksa is on his first service extension. There have never been a previous instance of the Army, Navy and Air Force Commanders retiring simultaneously.

Among other officers expected to retire at the end of this year is Maj. Gen. Ruwan Kulatunga, Chief of National Intelligence (CNI). Kulatunga received the appointment in the second week of June, 2019, in the wake of the Easter Sunday carnage. Kulatunga succeeded retired DIG Sisira Mendis, one of those faulted by the Supreme Court for the failure to thwart the National Thowheed Jamaat (NTJ) terror attacks.

Sources said that Deputy Defence Minister Maj. Gen. (retd.) Aruna Jayasekera (NPP National List) had explained the government’s position with regard to service extensions to relevant officers. Unlike in the previous years, the newly retired officers were unlikely to be considered for diplomatic appointments, sources said. Ex-military chiefs who had been heading our diplomatic missions at the time of the change of government were recalled. Among the recalled were three former Navy Commanders, Admirals Jayanath Colombage (Indonesia), Ravi Wijegunaratne (Pakistan) and Nilantha Ulugetenne (Cuba). The NPP government also recalled Air Chief Marshal Sudarshana Pathirana from Nepal.

Within weeks after the general election held on 21 Nov., the NPP brought the State Intelligence Service (SIS) under DIG Dhammika Priyantha. The appointment brought the SIS under the police again. Following the 2019 presidential election, President Gotabaya Rajapaksa appointed Maj. Gen. Suresh Sallay as head of the SIS, in place of DIG Nilantha Jayawardena, also fined by the Supreme Court for failing to thwart the NTJ attacks. The government picked DIG Priyantha in spite of him not having served the intelligence services previously.

In spite of Jayawardena being accused of negligence, in early January 2023, on the recommendation of the then IGP Chandana Wickremaratne, he was promoted to the rank of Senior DIG and appointed Senior DIG Administration. However, in July, in the run up to the presidential election, the National Police Commission (NPC) sent Jayawardena on compulsory leave pending an internal disciplinary investigation into his part in the overall intelligence failure leading to the Easter Sunday attacks.

Near simultaneous attacks claimed the lives of 270 people. More than 400 others were wounded in the suicide blasts. Among the dead were approximately 40 foreigners.

In line with the NPP’s policy, the Office of Chief of Defence Staff (CDS) would be scrapped and the coordinating of the armed forces brought under direct control of the Defence Ministry, sources said. Hence incumbent CDS General Shavendra Silva, the wartime GoC of the celebrated 58 Division (formerly Task Force 1) would retire on 31 Dec., 2024.

The appointment of Brig. Deeptha Ariyasena as head of the Directorate of Military Intelligence (DMI) was among the key changes effected by the new government. Several senior officers of the DMI had been moved to the Regimental Centre while the government is contemplating what one source called total overhaul of the intelligence community.

Ariyasena, who had been with the mechanized infantry, served in the East as Brigadier General Staff when Maj. Gen. Aruna Jayasekera functioned as the Security Forces Commander, East, in the post-war period. Ariyasena hadn’t served the intelligence services before the new appointment. Jayasekera retired in Oct. 2019 after having served the Army for over 30 years.

Political and military sources said that the NPP government’s concerns over the security apparatus needed to be addressed soon. Sources pointed out that Defence Secretary Air Vice Marshal Sampath Tuiyakontha and Maj. Gen. Aruna Jayasekera played a significant role in the NPP political campaign in the run up to the presidential and parliamentary polls and were instrumental in overseeing the changes.

The Ilankai Thamil Arasu Kachchi (ITAK) has appointed former MP Mavai Senathirajah as the head of the party’s Central Committee.

Meanwhile, it was reported that C. V. K. Sivagnanam has been appointed as the Acting Leader of ITAK.

The decisions have been finalized during the ITAK’s Central Committee meeting held in Vavuniya today (28), according to MP Gnanamuththu Srineshan.

M.A. Sumanthiran would continue to act as the media spokesperson for the Ilankai Thamil Arasu Kachchi (ITAK)

Srinesan has been appointed as the spokesperson for the parliamentary committee comprising members of parliament, he will comment on parliamentary matters to the media.

However, these appointments will reportedly be effective only until the next Central Committee meeting of the party, he said.

The Criminal Investigation Department (CID) has summoned Yoshitha Rajapaksa, the second son of former President Mahinda Rajapaksa, to record a statement regarding the ownership of a government-owned land in Kataragama.

This follows a statement recorded on December 27 from Major Neville Wanniarachchi, the former personal security officer of Mahinda Rajapaksa.

Accordingly, Yoshitha has been asked to appear before the CID on Friday, January 3, as part of the ongoing investigation into the matter.

In a mid-October 2024 meeting with the European Union (EU) Ambassador, Sri Lanka reaffirmed its commitment to strengthening trade relations with the EU, particularly highlighting the role of the GSP+ programme in boosting Sri Lankan exports. This discussion underscores the significance of the GSP+, which offers tariff preferences for Sri Lanka’s exports to the EU. The GSP+ offers reduced tariffs on exports, conditional upon the recipient countries implementing 27 international conventions. These conventions include standards on labour and human rights, environmental sustainability, and good governance. Sri Lanka’s major exports to the EU, such as wearing apparel, employ low and medium-skilled, and female workers, as well as estate and rural sector workers, directing benefits of GSP+ to vulnerable communities.

GSP+: A Lifeline for Sri Lanka’s Economy

In 2023, Sri Lanka exported goods worth USD 3.63 billion (Bn) to the EU and the United Kingdom (UK) representing 30% of total exports of Sri Lanka. The 1,301 products exported by Sri Lanka under the six-digit Harmonized System (HS) codes, concentrate on key sectors such as wearing apparel, rubber, seafood, and tea. Notably, the EU and the UK are major export destinations for wearing apparel accounting for over half (54.9%) of Sri Lanka’s total wearing apparel exports​.

GSP+ preference offers Sri Lanka zero tariffs on many goods, granting relative price competitiveness in the EU market. Without GSP+, tariffs would revert to the EU’s Most Favoured Nation (MFN) rates. The preference margin – the difference between MFN and GSP+ – is more than 10 percentage points for high-value export sectors like wearing apparel (Figure 1).

However, GSP+ benefits are not fully utilised. Complex rules of origin make compliance challenging and costly, particularly for the wearing apparel sector. For instance, in 2019, Sri Lanka exported USD 1.31 Bn of knitted or crocheted apparel to the EU and UK, with only about half the exports (52.3%) benefiting from GSP+. Similarly, 52.3% of non-knitted apparel exports, valued at USD 842.45 million (Mn), used GSP+, while rubber products had a 96.4% utilisation rate, contributing USD 340.95 Mn in exports.

Consequently, the effect of a potential tariff increase will differ across export sectors, depending on factors like export volume, utilisation rates, and the size of the tariff hike. The forthcoming publication “Who Stands to Lose? Examining the Fallout of GSP+ Preference Erosion in Sri Lanka”, shows that once all these factors are accounted for, reverting to MFN tariffs due to the loss of GSP+ could lead to a decline in exports of USD 1.23 Bn, or 36.7%, compared to 2019, after accounting for utilisation rates.

The wearing apparel sector is expected to experience the largest hit, with a projected loss of USD 996.38 Mn, representing a 44.63% drop in exports. Although the utilisation rate for GSP+ in the wearing apparel sector is relatively low at 52.3%, the large volume of exports and the 10-percentage point difference between MFN and GSP+ rates mean that the sector would suffer significant losses (Figure 2). Key products such as men’s underpants, brassieres, and shirts, which are among Sri Lanka’s top 10 exports to the EU, are vulnerable to the negative effects of GSP+ withdrawal.

The Impact on Jobs and Inclusive Economic Growth

Sectors highly vulnerable to export changes play a crucial role in promoting inclusive economic growth in Sri Lanka, as they provide significant employment opportunities for women and rural workers (Figure 3). As a result, any potential decline in exports would disproportionately affect these vulnerable groups within the labour force, intensifying the economic challenges they face.

The IPS analysis suggests that the loss of GSP+ could put 73,574 workers at risk of losing their jobs. The apparel sector employs 87.1% of these vulnerable workers. The apparel industry currently employs 475,741 workers, of whom 70.5% are women.

When the embedded employment in the export losses is broken down by gender and skill level, it becomes clear that women, along with low and medium-skilled workers, will be the hardest hit. Out of the 73,574 workers at risk, 42,958 are women in low or medium-skilled roles. In the wearing apparel sector, 61.4% of vulnerable employees are females employed in low and medium-skilled occupations. Overall, 82% of all vulnerable workers are low and medium-skilled, highlighting the disproportionate impact on these workers if GSP+ is withdrawn.

The Road Ahead: Strategies for Inclusive Growth

Sri Lanka cannot afford to lose GSP+ given the current economic situation and the growth stage of the country. The slowly growing employment numbers show that alternative sectors are not in existence to absorb the labour force vulnerable to the GSP+ loss. Finding alternative jobs in the formal sector will be even more difficult.

To avoid this scenario, it is in Sri Lanka’s best interest to comply with the agreed-upon conventions and retain the GSP+ status. In the future, as the country reaches higher income levels, the GSP+ loss may be more manageable. However, at this stage, GSP+ is a driving force for increasing Sri Lanka’s exports and overall income.

While maintaining the crucial GSP+ preference, Sri Lanka should attempt to increase its utilisation by expanding the cumulation of non-originating materials, similar to the recent EU approval of cumulation between Sri Lanka and Indonesia. Enhanced cumulation will especially benefit the country’s wearing apparel sector. The Trade Preference Outlook-2024 of the UNCTAD also underscores the importance of reforming rules of origin, accounting for supply chain realities.

In the longer term, Sri Lanka can look into options like entering a free trade agreement with the EU to cope with the adverse effects of GSP+ loss at a higher income stage of the country. This is particularly important as Sri Lanka’s eligibility for GSP+ is not only tied to compliance with the required conventions but also to its income classification. If Sri Lanka transitions to upper-middle-income status, it will no longer qualify for the GSP+. This highlights the need for long-term solutions to maintain preferential market access.

Source:Daily FT

A jet powered target drone, bearing the marking of the Indian manufacturer Anadrone has been found by a fisherman off Sri Lanka’s Eastern coast, a media report said.

The drone was found floating 36 kilometres off Trincomalee in the island’s Eastern waters, the fisherman told Sri Lanka’s Hiru news.

“We found it in the sea near some fish were swimming,” he said. “After we finished fishing, I took the object on board and brought it ashore. Then I informed the police and they said they will inform the Navy.

The words, Shikra, target can also be seen on wings of the drone, as well as Anadrone on the tail fin.

Similar drones are produced by Anadrone Systems Pvt Ltd, an unmanned vehicle manufacturer, according to its website.

“Anadrone Systems Pvt Ltd is a forward-thinking defense company headquartered in India, specializing in the design, development, and deployment of advanced unmanned aerial systems (UAS) and defense technologies,” its website says.

The firm won an order for 100 units of it Shikra high-speed target system from the Indian Navy, the news portal Iadnews.in says.

The drone found in Sri Lanka has the marking 0032.

Former Indian prime minister Manmohan Singh has died at the age of 92.

Singh was one of India’s longest-serving prime ministers and he was considered the architect of key liberalising economic reforms, as premier from 2004-2014 and before that as finance minister.

He had been admitted to a hospital in the capital Delhi after his health condition deteriorated, reports say.

Among those who paid tribute to Singh on Thursday were Prime Minister Narendra Modi, who wrote on social media that “India mourns the loss of one of its most distinguished leaders”.

Modi said that Singh’s “wisdom and humility were always visible” during their interactions and that he had “made extensive efforts to improve people’s lives” during his time as prime minister.

Priyanka Gandhi, the daughter of former prime minister Rajiv Gandhi and a Congress party member, said that Singh was “genuinely egalitarian, wise, strong-willed and courageous until the end”.

Her brother Rahul, who leads Congress, said he had “lost a mentor and guide”.

Singh was the first Indian leader since Jawaharlal Nehru to be re-elected after serving a full first term, and the first Sikh to hold the country’s top post. He made a public apology in parliament for the 1984 riots in which some 3,000 Sikhs were killed.

But his second term in office was marred by a string of corruption allegations that dogged his administration. The scandals, many say, were partially responsible for his Congress party’s crushing defeat in the 2014 general election.

Singh was born on 26 September 1932, in a desolate village in the Punjab province of undivided India, which lacked both water and electricity.

After attending Panjab University he took a master’s degree at the University of Cambridge and then a DPhil at Oxford.

While studying at Cambridge, the lack of funds bothered Singh, his daughter, Daman Singh, wrote in a book on her parents.

“His tuition and living expenses came to about £600 a year. The Panjab University scholarship gave him about £160. For the rest he had to depend on his father. Manmohan was careful to live very stingily. Subsidised meals in the dining hall were relatively cheap at two shillings sixpence.”

Daman Singh remembered her father as “completely helpless about the house and could neither boil an egg, nor switch on the television”.

Consensus builder

Singh rose to political prominence as India’s finance minister in 1991, taking over as the country was plunging into bankruptcy.

His unexpected appointment capped a long and illustrious career as an academic and civil servant – he served as an economic adviser to the government, and became the governor of India’s central bank.

In his maiden speech as finance minister he famously quoted Victor Hugo, saying that “no power on Earth can stop an idea whose time has come”.

That served as a launchpad for an ambitious and unprecedented economic reform programme: he cut taxes, devalued the rupee, privatised state-run companies and encouraged foreign investment.

The economy revived, industry picked up, inflation was checked and growth rates remained consistently high in the 1990s.

‘Accidental PM’

Manmohan Singh was a man acutely aware of his lack of a political base. “It is nice to be a statesman, but in order to be a statesman in a democracy you first have to win elections,” he once said.

When he tried to win election to India’s lower house in 1999, he was defeated. He sat instead in the upper house, chosen by his own Congress party.

The same happened in 2004, when Singh was first appointed prime minister after Congress president Sonia Gandhi turned down the post – apparently to protect the party from damaging attacks over her Italian origins. Critics however alleged that Sonia Gandhi was the real source of power while he was prime minister, and that he was never truly in charge.

The biggest triumph during his first five-year term was to bring India out of nuclear isolation by signing a landmark deal securing access to American nuclear technology.

But the deal came at a price – the government’s Communist allies withdrew support after protesting against it, and Congress had to make up lost numbers by enlisting the support of another party amid charges of vote-buying.

A consensus builder, Singh presided over a coalition of sometimes difficult, assertive and potentially unruly regional coalition allies and supporters.

Although he earned respect for his integrity and intelligence, he also had a reputation for being soft and indecisive. Some critics claimed that the pace of reform slowed and he failed to achieve the same momentum he had while finance minister.

When Singh guided Congress to a second, decisive election victory in 2009, he vowed that the party would “rise to the occasion”.

But the gloss soon began to wear off and his second term was in the news mostly for all the wrong reasons: several scandals involving his cabinet ministers which allegedly cost the country billions of dollars, a parliament stalled by the opposition, and a huge policy paralysis that resulted in a serious economic downturn.

LK Advani, a senior leader in the rival BJP party, called Singh India’s “weakest prime minister”.

Manmohan Singh defended his record, saying his government had worked with “utmost commitment and dedication for the country and the welfare of its people”.

Pragmatic foreign policy

Singh adopted the pragmatic foreign policies pursued by his two predecessors.

He continued the peace process with Pakistan – though this process was hampered by attacks blamed on Pakistani militants, culminating in the Mumbai gun and bomb attack of November 2008.

He tried to end the border dispute with China, brokering a deal to reopen the Nathu La pass into Tibet which had been closed for more than 40 years.

Singh increased financial support for Afghanistan and became the first Indian leader to visit the country for nearly 30 years.

He also angered many opposition politicians by appearing to end relations with India’s old ally, Iran.

A low-profile leader

A studious former academic and bureaucrat, he was known for being self-effacing and always kept a low profile. His social media account was noted mostly for dull entries and had a limited number of followers.

A man of few words, his calm demeanour nevertheless won him many admirers.

Responding to questions on a coal scandal involving the illegal allocation of licences worth billions of dollars, he defended his silence on the issue by saying it was “better than thousands of answers”.

Source:BBC