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Japan supports humanitarian demining activities in Kilinochchi and Mullaitivu Districts

Posted on March 26, 2022 | by TELO Admin | Leave a Comment

The Government of Japan has provided a total sum of US$ 604,412 (approx. Rs. 120 million) to Skavita Humanitarian Assistance and Relief Project (SHARP) for humanitarian demining activities in Northern Sri Lanka.

The grant contract was signed on 25th March 2022 at the Ambassador’s Residence in Colombo, between Ambassador of Japan Hideaki Mizukoshi, and Major Gen. (retd) Sumathi Ranjan Balasuriya, Director / Field Reporting Officer of SHARP.

SHARP has cleared more than 1.9 km2 of mine-contaminated land through funds disbursed from Japan’s Grassroots Human Security Project (GGP).

This FY’s project is expected to contribute to the Government’s efforts of ensuring that mine-contaminated areas are safe, enabling resettlement of more than 2,000 displaced people and enhancing their livelihoods directly or indirectly in Kilinochchi, Mullaitivu districts.

Since the beginning of Sri Lanka Mine Action program, the Government of Japan has been continuously supporting mine clearance activities and the total amount of assistance exceeds US$ 41.4 million.

This year, Japan and Sri Lanka mark the 70th Anniversary of the Establishment of Diplomatic Relations. Development of the conflict-affected regions is one of the priority areas in Japan’s official development assistance policy to Sri Lanka. The Government of Japan will continue to support the effort for the Government’s goal of achieving a ”Mine-Impact Free Sri Lanka”.

Sri Lanka’s China-backed tax free zone conflicts with minimum global tax: IMF

Posted on March 26, 2022 | by TELO Admin | Leave a Comment

Sri Lanka’s China-backed Colombo Port City special economic zone, which has is giving long term tax holiday is likely to face pressure as the international community which is moving for a minimum 15 percent global tax, an International Monetary Fund report has warned.

The Organization for Economic Co-operation and Development has set up a minimum of 15 percent income tax.

Organizations such as the International Community of Investigative Journalists are targeting tax free jurisdictions with leaked documents involving money earned through questionable means. But investment by legally earned money are also channeled through such areas.

“The creation of a low-tax jurisdiction is likely to draw attention from the international community given a renewed focus on such matters, including in the context of the recently agreed OECD-led Inclusive Framework,” an IMF report on Sri Lanka said.

“It would therefore be important to adhere to international tax and regulatory standards and information exchange agreements established with foreign counterparts, including those guided by the OECD’s Common Reporting Standard.

US led pressure is forcing countries with turnover tax based regimes such in the Gulf Co-operation Council, and the Maldives that import labour to go into income tax.

Income tax kills investible capital and jobs by giving it to politicians to fritter away on the public sector expansion and vote buying gimmicks.

However Port City is also free from most turnover taxes.

Sri Lanka has seen state spending rise from around 17 percent of GDP in 2014 to 20.6 percent under so-called ‘revenue based fiscal consolidation’ that pooh-poohed spending cuts including on a bloated public service and state enterprise financing.

The entire burden of adjustment was shifted to the private citizens, under revenue based fiscal consolidation, and without spending based consolidation, and politicians were free to raise public sector salaries, raise pensions, and expand recruitment.

The IMF warned that businesses that invest in the Port City could potentially try to avoid taxes and they should file a tax return even if nothing was paid.

“Effective revenue administration is critical for mitigating risks from tax planning between offshore entities and their onshore affiliates and can be supported by significantly scaling back the list of taxes eligible for exemptions to reduce administrative hurdles,” the IMF said.

” IRD’s capacity and expertise should be leveraged to safeguard transparency and accountability, by requiring all SEZ companies (regardless of their tax-exempt status) to file tax returns.

“Besides, a tax expenditure review covering the SEZ should be part of the annual budgetary process and subject to periodical evaluation. ”

The Port City would be dollarized and would be free from currency depreciation and hardships created by the soft-pegged central bank of Sri Lanka.

Currency peg collapse due to aggressive liquidity injections by the domestic operations department of a central bank to keep interest rates down.

“Meanwhile, offshore institutions should be prohibited from providing financial services to residents or accessing the central bank’s liquidity window and deposit insurance in Sri Lanka,” the IMF report said.

“Any direct or indirect financial linkages between the onshore and offshore financial sectors (including through cross-ownership) should be closely monitored to assess and mitigate potential spillover risks.”

Sri Lanka is facing ‘clear solvency problem’: IMF Report

Posted on March 26, 2022 | by TELO Admin | Leave a Comment

Sri Lanka faces “solvency” issues because of risks stemming from unsustainable debt levels that jeopardize the nation’s economy, according to International Monetary Fund staff.

“Based on staff analysis, the fiscal consolidation necessary to bring debt down to safe levels would require excessive adjustment over the coming years, pointing to a clear solvency problem,” the IMF said in its Article IV consultation report, released Friday in Washington.

The full report provides further analysis of the South Asian island nation’s debt and finances. A summary of the report released earlier in the month said Sri Lanka faced unsustainable debt levels and needed a “credible and coherent” strategy to restore stability.

The country’s “debt overhang,” along with persistent fiscal and balance-of-payments shortfalls, “will constrain growth and jeopardize macroeconomic stability in both the near and medium term,” the report said.

“Rollover risk is very high,” the IMF said. “FX debt service needs of $7 billion each year will require access to very large amounts of external financing at concessional rates and long maturities, sustained over many years.”

Since the IMF board considered the staff report in late February, a surge in oil prices and the loss of tourists because of the attack on Ukraine exacerbated its foreign exchange crisis, forcing the government of President Gotabaya Rajapaksa to seek IMF aid. Negotiations on a possible aid package are expected to start in April, when Finance Minister Basil Rajapaksa, a brother of the president, travels to Washington.

The spiraling crisis has also led the country to raise interest rates, devalue the local currency and curb non-essential imports.

Sri Lanka has about $2 billion of reserves against $3.9 billion of foreign-currency debt due for the remainder of 2022, according to Bloomberg calculations based on central bank data. This includes $1 billion of sovereign bonds maturing in July.

The Central Bank of Sri Lanka stands ready for closer engagement with the IMF, working jointly with the government, “in order to ensure that the benefits of such an engagement outweigh any costs associated with the same, from the perspective of the general public, and the business and investor community,” the monetary authority said in a statement Saturday.

Source: Gulf News

US $ 1Bn loan from China to settle previous loans

Posted on March 26, 2022 | by TELO Admin | Leave a Comment

The proposed US $ 1 billion loan to be obtained from China will be utilised to settle the previous loans from the Chinese banks, Daily Mirror learns.

Sri Lanka’s current loans from China also amount to nearly US $ 1 billion, a top source said. The latest method will be adopted since China does not have the concept of rescheduling debts.

The authorities of the two countries are currently negotiating terms and conditions of the new financial facility to be extended.

Besides, there will be another US $ 1.5 billion buyer’s credit from China to import materials from China.

Sri Lanka Economy Has ‘Hit Rock Bottom,’ Putting Pressure on President

Posted on March 26, 2022 | by TELO Admin | Leave a Comment

Just lentils, rice and tea without milk. Meals are increasingly meager for Sandamali Purnima, a Sri Lankan salon employee, her taxi-driver husband and their four young children. With cooking gas hard to find and the electricity cut, she cooks this basic fare outdoors over wood-fed flames.

A staircase in their suburban home leads to an unfinished second floor, concrete prices too high to continue.

“Building a house is hard,” Ms. Purnima said. “But eating is even harder.”

An economic crisis is disrupting life across Sri Lanka, an island nation off India’s southern coast that only recently had been outperforming its neighbors.

In less than a decade, Sri Lanka recovered from the ravages of a civil war that ended in 2009, soaring to the status of an upper-middle-income nation. It built a tourism-based economy that brought billions of dollars, many jobs and middle class comforts: high-end eateries and cafes, imported Jeeps and Audis, and upscale malls.

Now, Sri Lankans just want the lights to stay on.

The country’s enormous debt load, the pandemic and, most recently, the war in Europe have brought it to its knees.

The central bank is printing rupees and hoarding dollars, sending inflation to a record high of 17.5 percent in February. The finance minister is begging neighbors for credit lines to buy diesel fuel and milk powder. In a barter arrangement, the central bank is paying for Iranian oil with tea leaves.

For months, the government of President Gotabaya Rajapaksa has rationed power. Sections of the capital, Colombo, go dark suddenly, city streets becoming as inky black as the Indian Ocean beside them.

“We’ve really hit rock bottom,” said Paikiasothy Saravanamuttu, the founder and executive director of the Colombo-based Center for Policy Alternatives.

Then he paused, and conceded that many believe the situation could get even worse. “The question on everyone’s mind is: When is this going to absolutely crash?”

When Mr. Rajapaksa won elections in 2019, just months after Easter Sunday terrorist attacks that killed more than 250 people on the island, he had campaigned on a platform of restoring security to the nation, relying in part on his reputation as a brutal defense secretary who had helped bring Sri Lanka’s long civil war to a close.
NYT (Source)

TPA Seeks Non-Territorial Council for Hill Country Tamils By D.B.S. Jeyaraj

Posted on March 26, 2022 | by TELO Admin | Leave a Comment

The total population of Tamils – both Sri Lankan and Indian -is 3,113, 247. Of these 1,611,036 Tamils are living in the Northern and Eastern Provinces. Another 1,502,211 Tamils live outside the Northern and Eastern Provinces

The Tamil Progressive Alliance (TPA) has taken the initiative in seeking a new representative body for the pre-dominantly Tamil people of recent Indian origin or Indian Origin Tamils(IOT). In recent times the community has become known as the “Malaiyahath Thamizhar” (Hill Country Tamils/Up Country Tamils). Although called Hill Country Tamils because they are mainly concentrated in the Uva,Sabaragamuwa and Central provinces,the “Malaiyahath Thamizhar” community is widely dispersed in all parts of the Island. What the TPA envisages is the creation of a new entity – Non -Territorial Community Council- to represent the interests and aspirations of the hill country Tamils scattered throughout the country. The laudable objective is to facilitate and expedite the comprehensive integration of the community into the mainstream as full-fledged citizens of Sri Lnka while retaining their ethnic identity.

According to the 2012 census, the Indian origin Tamils numbering 839,504 (4.12%) are the fourth-largest ethnicity in Sri Lanka. However this is not entirely accurate as a very large number of the Indian Origin Tamil citizens have been categorized as Sri Lankan Tamils in the official census. This is blatantly visible in the Northern and Eastern districts as well as in Colombo and Gampaha. Even in the Up Country districts the census enumerators have a tendency to classify those living in estate regions as Indian Tamils and those residing in urban areas as Sri Lankan Tamils. The total population of Tamils – both Sri Lankan and Indian -is 3,113, 247. Of these 1,611,036 Tamils are living in the Northern and Eastern Provinces. Another 1,502,211 Tamils live outside the Northern and Eastern Provinces. The harsh reality is that the Tamils living in the seven Sinhala majority provinces have been deprived of equitable political representation over the years. The majority of these people are those of Indian origin known as Hill Country Tamils. Moreover the community notably the plantation workers are economically under-privileged.

Tamil Progressive Alliance

The Tamil Progressive Alliance founded on June 3rd 2015 is the premier political configuration of the Hill Country Tamils as far as Parliamentary representation is concerned.The TPA obtained six seats at the 2015 Parliament poll. The party got three seats in Nuwara- Eliya and one each in Colombo, Badulla and Kandy districts. The TPA repeated its success in 2020 by winning six seats in the exact manner as it did earlier in 2015. Three other Hill Country Tamil MP’s were elected from the Ceylon Workers Congress(CWC) in Nuwara -Eliya and Samagi Jana Balavegaya(SJB) in Badulla. However the TPA’s Badulla district MP violated party discipline by voting for the 20th Constitutional amendment and was expelled.The TPA contested the 2015 election under the UNP’s elephant symbol and the 2020 poll under the SJB telephone symbol.

The TPA comprises the Democratic Peoples Front (DPF) National Union of Workers (NUW) and Up Country Peoples Front (UCPF) led by Mano Ganesan, Palanyi Thigambaram and Velusamy Radhakrishnan respectively. While the three constituent parties continue to retain their status as separate parties, the TPA was officially recognized as an Independent political party by the Elections Commission last year and allocated the torchlight as election symbol.

“Tamil Mutpoakku Kootani”

Mano Ganesan is the Tamil Political Alliance leader while Palani Thigambram and V Radhakrishnan are the joint deputy -leaders. Chandra Schafter is the General Secretary. The TPA has a Presidium of 6 Members and a 14 member Politbureau. The TPA’s name in Tamil is “Tamil Mutpoakku Kootani”.

The current TPA proposal to form a Non – Territorial Community Council(NTCC) is an integral and vital component of a politically important document formulated by the TPA a few weeks ago. It is titled “Aspirations of Tamil People of Recent Indian Origin Towards Integration with Dignity and Mainstreaming as full Citizens in Sri Lankan Polity and India Sri Lanka Accords”.

Initially the TPA held public discussions on the need for such a document and thereafter called for related submissions from intellectuals, scholars and professionals in the community. A committee was formed to draft the document referred to in brief as the “Aspirational Document”. The final draft was approved and authorized for public dissemination by the TPA politbureau and presidioum. A key element of the aspirational document is the proposal to establish Non -Territorial Community Councils for “Minority Communities of Special Interest (MCoSI) living in dispersed form in the country”.

Mano Ganesan

TPA leader Mano Ganesan who is the driving force behind the initiative told this Column that a letter of appeal along with the aspirational document was to be sent to President Gotabaya Rajapaksa, Indian Prime Minister Narendra Modi and British premier Boris Johnson. The rationale being that of all three countries bearing a responsibility and duty towards the community. India due to the “umbilical cord relationship”, Britain for having re-located the bulk of Indian Tamils to the Island as estate workers and Sri Lanka being of course being their own country and homeland now. Ganesan said that an appointment was sought with President Rajapaksa to present the documents and discuss related issues with him but a date had not been given so far. An appointment with the British envoy would be sought after meeting with the President. However a TPA delegation led by Ganesan met with Indian High Commissioner Gopal Baglay and formally handed over the letter to PM Modi early this week. The TPA leader said a fruitful discussion into the proposals outlined in the letter/document ensued and further talks may be held if and when Indian Foreign Miniser Dr. S. Jaishankar visits Colombo.

Copies of the appeal letter and aspirational document will also be given to diplomatic missions in Colombo. Mano Ganesan also said that the TPA would be meeting the leaders of political parties in Sri Lanka to forge a supportive consensus for the NTCC. Responding to a Question, Ganesan said that discussions would be held and a mutual understanding arrived at with the Ceylon Workers Congress (CWC) soon.

Missive to Indian PM Narendra Modi

The following is the text of the letter/appeal sent to Indian Prime Minister Shree Narendra Modi-
Your Excellency

This is an appeal from the Tamil community of recent Indian Origin in Sri Lanka also known as Malaiyaha Tamils or Hill-country Tamils (hereafter called as Malaiyaha Tamils). This flows from our continued appeals to the successive Sri Lankan governments for recognition and equal treatment as a distinct and integral people of Sri Lanka. This echoes on our community’s struggles for an identity as a constituent people of Sri Lanka in par with Sinhalese, Sri Lankan Tamils and Muslims. They build on representations in previous constitutional reform processes established and recognized by the different governments since the 1980s.

Background to our appeal for recognition as equal citizens

The demands articulated by the political leadership of Malaiyaha Tamils since independence has been for recognition as full-fledged citizens on par with the rights enjoyed by the other communities. The demands have been for equality, non-discrimination, security and for political and administrative arrangements that safeguards the interests and identity of the community. These demands were made so that the community will have the requisite political voice and power to live with dignity, self-respect, peace and security and manage affairs of its people who live in a concentrated manner in Nuwara Eliya and in a dispersed manner in several parts of Sri Lanka.

The Malaiyaha Tamil community were brought to Sri Lanka, then Ceylon, from India since early 1800s by the companies under the British crown. This community was the second largest ethnic group at the dawn of independence. But they were controversially deprived of citizenship immediately after independence, over-riding the protection for minorities found in article 29(2) of the then constitution of Sri Lanka. Thereafter many were subjected to arbitrary and involuntary repatriation to India. These greatly diminished the political status and socio-economic wellbeing of this community.

Prolonged periods of statelessness, disenfranchisement and declining of the population that followed continue to cast a long shadow to date and have shaped the contours of our demands. The subsequent cycles of structured violence that visited us, the resultant internal and external displacements, discriminatory and unfair treatment and continued marginalization suffered by this community have added greater credence to our appeal.

We recognize India’s sustained interest on the status and welfare of Malaiyaha Tamils
India has played an active role on the citizenship matter as well as on a wide range of development issues including employment, education and housing assistance. This interest was necessitated due to historic ties, international norms and geographic and humanitarian reasons. These have manifested in a number of bilateral deliberations and agreements signed over the years that dealt with the citizenship rights and corresponding legal obligations of signatories. The weakening of political status and socio-economic wellbeing of the Malaiyaha community that ensued from these agreements have also cast a moral obligation on India.

The last major agreement signed between the heads of states of Sri Lanka and India was in 1987. But India had signed three major pacts with the Sri Lankan government before that consisting of mutual obligations regarding citizenship of our community and its subsequent well- being: Nehru-Kotelawala Pact (1954), Sirima-Shasthri Pact (1964) and Sirima-Indira Pact (1974). In addition, Indian Government’s good offices were instrumental in resolving the long lasting citizenship issues of the community through a series of legislative measures spanning 1986 – 2009 enacted under the administrations of Presidents J.R.Jayawardena, R.Premadasa, Chandrika Kumaranatunge and Mahinda Rajapakse. The Indo-Lanka accord of 1987 was instrumental in bringing both 13th amendment establishing the Provincial Councils as well as the 16th amendment on language use to the constitution of Sri Lanka.

The Provincial Councils brought about a measure of power devolution currently enjoyed by all the people of all nine provinces of Sri Lanka and provided another forum to exercise representative political voice of Malaiyaha Tamil community. The trilingual policy enshrined in the constitution has brought recognition to the Tamil language as one of the official and national languages along with Sinhala and established English as the link language in Sri Lanka.

The current status and our appeal

The current status of the Malaiyaha Tamil Community of recent Indian origin considered to be over 1.5 million strong, has been a result of past history of imposed statelessness, uncertainty around citizenship and lack of franchise. This has also impacted on the community’s socio-economic wellbeing. The most affected segment has been those living and working in the plantation estates. They have become the most marginalized group in the country registering lower measures on almost all human development indices compared to every other community in the country. For them this has impaired their transition from workers – tied to and dependent on their plantation employers – to full-fledged citizens of Sri Lanka with equal rights as others.

In general, the basic premise of the agreements from 1954 – 1974 and the related bilateral deliberations had been the assurance by the Sri Lankan Government that all those it recognized as its citizens would enjoy full citizenship rights on all aspects including voting rights, land rights, public employment and access to government services. This was the spirit in which the leaders of the two countries engaged with the issues. While progress on voting rights in par with other citizens has been ensured, measures on other areas have been slow, limited or stalled. The health indicators show generational lag compared to national averages, health facilities are yet to be mainstreamed, our presence in public sector employment and tertiary education woefully inadequate and access to administrative services remain unequal.

These matters have been and continue to be part of our community’s negotiations with the various Sri Lankan governments. In the present instance we are also apprehensive about the electoral reforms and constitutional reforms processes underway which we fear may roll-back some of the existing arrangement and guarantees which helped overcome certain policy and institutional obstacles and discriminations.

In this background, as constitutional reforms are being contemplated by the Sri Lankan Government we appeal to Your Excellency to urge the Government of Sri Lanka to ensure
full implementation of the Thirteenth Amendment and the holding of the Provincial Council elections without any further delay,
full implementation of the Sixteenth Amendment to the Constitution which introduced parity of status for Tamil and the Sinhala, Tamil, English tri-lingual policy
mainstreaming and structural integration of Malaiyaha Tamil community into national polity, recognition as a constituent people of Sri Lanka with a distinct identity and enabling them to enjoy full and equal citizenship rights as assured through.

a. Establishment of non-territorial community council, as deliberated under previous all-party conference established by President Mahinda Rajapakse, with a mandate on selected affairs of the community that is living in a geographically concentrated basis in Nuwera Eliya and in a dispersed manner in other parts of the country.

b. Measures of power sharing and real devolution at central, provincial and local government tiers and,

c. Equitable and inclusive electoral representation at all levels through proportional representation electoral system and a fair electoral and administrative delimitation process, that give a meaningful role in governance at all tiers of governance.

d. Administrative measures, including affirmative action to catch up lost ground, on land, housing rights, employment, education and health.

e. Demarcation of GN divisions and DS divisions in the plantation areas in par with other rural areas so as to ensure equitable access to decentralized governance institutions and government services at village, district and divisional levels.

Non- Territorial Community Council(NTCC)

The following is the text of the Constitutionl proposal to establish a Non-Territorial Community Council(NTCC) for the Malayaha/Indian Origin Tamil community in Sri Lanka.
Non-Territorial Community Councils (NTCC) shall be established to represent the interests and aspirations of the Minority Communities of Special Interest (MCoSI) living in dispersed form in the country.
NTCC shall be enshrined in the constitution by law.
There shall be a NTCC established for the Tamil Srilankan community of recent Indian origin living in dispersed form in the country
Legislators elected/nominated to parliament, provincial councils and to the offices of chairpersons to the local government bodies belonging to the particular Minority Community shall be ex-officio members of the NTTC.
A senior Sri Lanka Administrative Services (SLAS) officer, equal to the rank/status of Secretary of a central ministry, shall be the secretary of the NTTC who will head the secretariat the NTCC.
There shall be number of officers drawn from SLAS/Provincial Cadre shall function in the secretariat of NTTC under the Secretary.
A Assembly secretary and a deputy secretary shall be nominated to conduct the business of the council assembly.
All NTCC secretariats shall be established in the national capitol territory, Colombo.
All bills and regulations submitted to the national Parliament and nine PCs shall be refereed to NTTC for its scrutiny.
NTTC shall monitor, scrutinize, propose amendments to the laws and regulations to such submitted to the national Parliament and PCs which are in relevance to the cultural, social, political, economic lives of the relevant MCoSI for which it is established.
The level of authority of NTTC to intervene in the discussions and passing of bills of Parliament and PCs, relevant MCoSI for the NTTC is established, shall be a matter left to Constitutional/Supreme court.
NTTC shall and may exercise monitoring, intervening, engage in development activities on following subjects where the Minority Communities of Special Interest (MCoSI) which the NTTC represents:
a. Primary and Higher Education & Technical Training

b. Primary Heath & Nutrition

c. Sports

d. Culture, Religion and Linguistic subjects

e. Infrastructure Development

f. Housing

g. Livelihood

h. Any other

The patterns of performances and functions NTTC shall be similar to the performances and functions PCs including the use of official and link languages and their respective simultaneous translations.
A Chairperson and a Vice Chairperson shall be elected from the members of Parliament who are ex-officio-members of the NTTC.
There shall be an advisory board of eminent persons nominated by the NTTC which will function as the advisory arm of the NTTC.
A full house meeting of the NTTC shall be the meeting participated by the members of NTTC and members of advisory board together chaired by the chairperson.
NTTC shall meet as per the fixed agenda decided by the Business Committee of NTTC.
Chairperson shall chair the house meetings and subject committee meetings of the NTTC. In the absence of Chairperson, the Vice Chairperson shall chair.
All recurrent and development funds of the institutions of NTCC shall be obtained from national budgetary allocations by the minister of finance.
Presidential secretariat, Parliament of Sri Lanka, Central and PC ministries, PC administrations, Local Government councils, All the government machinery arms including district secretariats, divisional secretariats and department of Police shall recognise NTCC.
NTTC if necessary, may obtain/receive foreign and local grants and assistances for the purpose of the development and welfare of the communities it represents. All such foreign funds shall be channeled through External Resource Division (ERD) of the central Ministry of Finance.
An internal budget of accounts related to national budgetary allocations, local and foreign grants shall be forwarded to the assembly for approval.
All financial activities related to national budgetary allocations, local and foreign grants shall be subjected to the department of auditor general.

TPA Proposal a Novel Idea

The TPA proposal to establish a Non Territorial Community Council (NTCC)for the Indian Origin Tamils is a novel idea worth pursuing. It is hoped that the NTCC would become a reality after further discussions and possible modification. The setting up of a NTCC and its ramifications would be delved into in greater detail in a future article.

D.B.S.Jeyaraj can be reached at dbsjeyaraj@yhoo.com

Sri Lanka rupee bid at 295 to US dollar, bonds inactive

Posted on March 25, 2022 | by TELO Admin | Leave a Comment

Sri Lanka’s rupee was bid at 295 to the US dollar late Friday, with not offers and bond markets were inactive, dealers said.

The rupee was quoted at 290/320 to the US dollar in intra-day trading.

The rupee was quoted as weak a 290/320 to the US dollar but there is no active trading in the spot market.

In the kerb market the US dollar was offered at 335 rupees on Friday. In online market the tether stable coin was quoted from 334.18 rupees upwards.

Commercial Banks were offering to sell dollars for telegraphic transfers at 292.5 to 297 rupees and was buying at 272.5 to 287 rupees on Friday.

Analysts had warned that a surrender requirement imposed by the central bank goes against the rupee and is a stumbling block to the attempt at floating the rupee. However the surrender requirement was doubled on Wednesday.

Bond markets were also inactive.

In the secondary market, the only liquid bond maturing on 01.08.2024 was quoted at 15.00/15.25 percent on Friday, up from 14.95/15.15 percent a day earlier.

In the money market, the central bank was quoting an indicative spot rate of 290.00 dollars, up from 280.00 dollars, a day earlier.

Commercial banks were offering to sell dollars at 294.99 rupees for telegraphic transfer and buy at 284.82 rupees on Friday.

On Thursday the selling rate was 289.99 and buying at 279.9.

Sri Lanka newspaper halts printing amid shortages

Posted on March 25, 2022 | by TELO Admin | Leave a Comment

Sri Lanka’s popular daily newspaper The Island, which was published without interruption during the civil war , has now halted its print edition, owing to a shortage of newsprint amid the severe economic crisis facing the country.

“We regret to inform our readers that we have been compelled to suspend the publication of The Island print edition on Saturday,” a notice, published on the front page of the newspaper said on Friday, attributing the decision to the “prevailing newsprint shortage.” The newspaper apologised to its readers for taking such a measure which, it said, was “due to circumstances beyond our control.”

Explainer: Sri Lanka’s aggravating economic crisis

Sri Lanka is strugglling amid a crushing economic downturn, with all sectors of the import-reliant island nation badly hit. Earlier this week, the country’s Education Department postponed term examinations for millions of students, as they did not have sufficient paper. Authorities also said they could not complete printing textbooks for the new term amid persisting shortage of paper. And now, the country’s print media is the latest victim of the crippling economic crisis.

“We are not printing the Saturday edition alone, as a temporary measure. The situation is very grim,” The Island’s Editor Prabath Sahabandu told The Hindu. “Many Sri Lankan newspapers have been going slimmer lately. We are all forced to cut down our pages and give truncated news because it’s not just newsprint that we import, but also printing plates and ink. And everything is either in short supply or just not available,” he said.

Fewer pages, in turn, lead to lesser advertisement revenue for the publications, editors pointed out. With printing having become a challenge, they also fear that crucial coverage of the current crisis may not reach the public if the newsprint shortage continues.

Since its launch in 1981, The Island has shut its press only for the annual Sinhala-Tamil New Year holidays in April. “We never stopped printing even during the war. It was only during the lockdowns during the pandemic that we had to suspend the print edition because distribution was not possible,” Mr. Sahabandu said. According to him, the government printer has indicated that they will run out of paper in two months. “They are worried about how gazettes and other vital official documents will be printed.”

Most Sri Lankan newspapers use newsprint from Norway, Australia, Indonesia, and Russia to print their pages. The country’s dollar crunch has led to imports of even essentials being delayed or stalled, due to the uncertainty in dollar payments. Meanwhile the Sri Lankan rupee has plummeted to nearly 285 (official buying rate) against a US dollar.

“When we placed an order for newsprint about three months ago, it was $ 750 a ton, and now it has gone up to $ 1070 per ton. About 70 % of our production costs are for newsprint. We are now forced to import newsprint from India, despite its poor quality,” said Kumar Nadesan, Managing Director at Express Newspapers (Ceylon)Limited, which publishes Tamil daily Virakesari.

“It is becoming very difficult to sustain the news business in this situation. We must pay our staff. We can’t ask them to work from home because of the power cuts across the country. In fact, we must give them some sort of a hardship allowance to cope with this crisis,” said Mr. Nadesan, who is also the Chairman of the Sri Lanka Press Institute.

Hindu (Source)

CWC loses confidence in President Boycotted APC over fertilizer issue

Posted on March 25, 2022 | by TELO Admin | Leave a Comment

The Ceylon Workers Congress (CWC) led by State Minister Jeevan Thondaman has lost confidence in President Gotabaya Rajapaksa, party officials told Daily Mirror.

Sources said that the CWC was irked over the president’s decision taken last year to ban the import of chemical fertilizer despite strong objections raised by the party. CWC sources told Daily Mirror that one of the main reasons the CWC boycotted the All Party Conference held this week, was because of the impact the fertilizer ban had on the estate community.

The CWC was also not happy with a number of other decisions taken by the President. “The President is not listening to us. We have raised our concerns with the Prime Minister,” sources added.

The CWC leadership had discussed and decided to boycott the APC this week and communicated its decision to the President’s Office. CWC sources said that the main focus of the party is to ensure the welfare of the estate community and will not compromise that at any cost.

Talks between President and ITAK and PLOTE ends with 5 points discussed

Posted on March 25, 2022 | by TELO Admin | Leave a Comment

The long-adjourned meeting between the President and representatives of the Tamil National Alliance took place this morning Friday 25-03-22.

According to our correspondent, the meeting is taking place at the Presidential Secretariat.

Reportedly, the discussion is focusing on a number of issues including the formulation of a new constitution.

ITAK MP M.A. Sumanthiran stated that only representatives of the Tamil National Alliance’s partner parties, PLOTE and ITAK were present at the official meeting with the President.

Sumanthiran said the TELO, a alliance member of TNA, did not attend the official meeting with the president.

TNA Leader Rajavarodayam Sampanthan, ITAK Party Leader Mavai Senathirajah, PLOTE Leader Dharmalingam Siddharthan, MPs M.A. Sumanthiran, S. Sreedharan, Rasamanikkam Chanakkiyan, T. Kalaiyarasan and Charles Nirmalathan are participated the meeting with the President.

Seven Tamil National parties , have written to Indian Prime Minister Narendra Modi to press for the full implementation of the 13th Amendment to the Constitution.

It is noteworthy that steps have been taken to hold an official discussion with the President.

Political analysts believe that Srilanka is engaging in these talks to escape the economic crisis.

The President, during a meeting with US Under-Secretary of State for Political Affairs Victoria Nuland earlier this week, said a discussion has been scheduled with the Tamil National Alliance.

He also expressed willingness to hold talks with the Diaspora and invited them to invest in the development process of the Northern Province.