Category: Breaking News

The ferry service proposed between the ports of Karaikal in the Union territory of Puducherry and Jaffna in Sri Lanka is awaiting clearance from the Indian Ministry of External Affairs to take off, Puducherry Lt Governor Tamilisai Soundararajan said on Tuesday

Shortly after flagging off Samudra Naukayan, an ocean sailing expedition by NCC naval wing cadets from Puducherry to Karaikal, she said shipping services between Karaikal and Jaffna were available in the past and were discontinued for various reasons, the New Indian Express reported.

The territorial government was pursuing the proposal to revive the service and the Sri Lankan Deputy High Commissioner and ministers had recently held discussions with the Puducherry administration in this regard. According to Puducherry Transport Minister Chandira Priyanga who interacted with the Sri Lankan ministers, Sri Lanka wanted the ferry service to one more port on the island nation’s east coast.

As part of efforts to promote tourism, the Ministry for Shipping had mooted the proposal to start the ferry service between Karaikal and Jaffna, covering a distance of 56 nautical miles (103.7 kilometres), in February 2021. Union minister of state for shipping Mansukh Mandaviya held a meeting with the Puducherry administration at the Chief Secretariat in this regard.

He said many Tamils from Sri Lanka come to India for religious purpose. Besides, Sinhalese people also desire to visit Buddhist places in India. The ferry service will facilitate their visit for spiritual purposes. It will not only give a boost to tourism, but also improve bilateral cooperation between India and Sri Lanka, he said.

The project would be on private-public-partnership (PPP) basis, where the operator would operate the service, Karaikal Port will be the facilitator and the state and central government would extend support, he had said.

To take the proposal forward, a committee under the Chief Secretary along with Secretary, Port, and other officials had been constituted. The committee went into the nitty gritty and presented a report to the shipping ministry. Now, various clearances, immigration, customs and no objection certificates by agencies are being obtained.

It is a major tourism project that is expected to help in the development of Karaikal and bring business and economic development to Puducherry.

Earlier, after flagging off the ocean sailing expedition by NCC cadets at the Puducherry Port, she said it was part of an effort to infuse in the youth the spirit of courage and capability to tide over all challenges.

The expedition would be for 11 days between Puducherry and Karaikal, adding that the team had 60 cadets including 25 girls. The expedition would sail from Puducherry to Karaikal through Cuddalore, Parangipettai and Poompuhar. On each leg of journey, six cadets and one instructor will be sailing in non-motorized boats also called DK Whaler harnessing wing force. On the return leg, they would sail along the same route up to Kalapet and the expedition would culminate at Thengaithittu Harbour thus travelling a total distance of 302 km. The cadets underwent extensive training in rowing and sailing techniques before starting the journey. During the expedition, the team would undertake social service activities such as pollution awareness drives, coastal clean-ups, sapling plantation and adventure related activities including kayaking.

She said that the territorial government was ramping up facilities in hospitals to ensure that patients with complaints of dengue were taken care of without delay. The Lt Governor appealed to the people to maintain cleanliness at homes.

The Parliamentary Select Committee (PSC) to consider the government business presented to Parliament by the public institutions that do not come under the preview of the existing Ministries agreed to present the Registration of Electors (Amendment) Bill to Parliament.

The PSC chaired by the Prime Minister Mahinda Rajapaksa agreed on presenting the bill on the 6th October when they met under the leadership of Minister of Highways and Chief Government Whip Johnston Fernando Tuesday (05).

In particular, under the Registration of Electors Act No. 44 of 1980, voters are registered on the first day of June of each year at the age of 18 years. However, young people who have their birthdays after the said date will have the right to vote in the elections to be held after May 31 next year.

Therefore, this amendment is being made to give the opportunity to those who have attained the age of 18 years in order to cast their votes expeditiously.

The Extraordinary Gazette Notification on this regard was issued on 13th March 2021. Accordingly, this (Amendment) Bill is due to be presented to Parliament on the 6th.

Ministers (Prof.) G. L. Peiris and M.U. M. Ali Sabry, the Chief Opposition Whip, Member of Parliament Lakshman Kiriella attended this meeting.

Sri Lanka Tuesday reported 40 deaths due to COVID-19 after the figures were confirmed by the Director General of Health Services on Monday, October 04.

Among the deaths reported today, 22 are of males and 18 of females. The majority of deaths – 36- are of elderly people in the 60 years and above age group.

According to the data reported by the Government Information Department, the total deaths due to Covid-19 since the pandemic began last year has now risen to 13,142.

Sri Lanka has printed 106.7 billion rupees to fully sterilize liquidity shortages that emerged in the banking system in September from a statutory reserve hike and foreign reserve losses, data show.

On October 04, the central bank’s Treasury bills tock rose to 1,442.7 billion rupees from 1,336 billion rupees.

The central bank withdrew about 150 billion rupees from the banking system through a statutory reserve ratio hike on September 01 and subsequently also intervened in forex markets to lose foreign reserves.

From August 30, 227.6 billion rupees had been printed through outright purchase of Treasury bills and bonds and another 103.5 billion rupees was printed through a term reverse repo auction.

Sri Lanka’s newly re-appointed central bank Governor Nivard Cabraal had lifted a ceiling on yields which had led to failed bond and bill auctions and allowed rates to go up limiting money printing.

Sri Lanka has been printing large volumes of money and also buying bonds into its balance sheet, in a severe deterioration of rule based policy seen under ‘flexible’ inflation targeting and ‘flexible exchange rate’ since 2015.

The central bank jettisoned a ‘bills only’ and started buying up bonds into its balance sheet with printed money even taxes were raised and then started buying bonds from failed auctions, which is against section 112 of its Constitution.

“Provided, however, that except in the case of treasury Bills, for which the Central Bank may make direct tenders, the bank shall
not subscribe to any issue of such securities or agree to purchase the unsubscribed portion of any such issue,” the MLA says.

Sri Lanka’s MLA is however a has enough provisions according which can be used to print money trigger forex shortages destroy the currency, though originally the intention was that there would be no direct government financing except through the 180 day provisional advances.

Until money printing began after the setting up of the central bank, Sri Lanka had an East Asia style currency board which had kept the currency stable through two World Wars and a Great Depression.

While excessively large liquidity shortages may not be required analysts say, higher rates and some liquidity shortages are required to stop a complete collapse of the rupee.

However foreign exchange shortages persists and the latest injection had reduced a liquidity short to 9 billion rupees.

Sri Lanka’s forex reserves are low and the central bank is seeing reserve liabilities rise.

On Monday bond markets continued to limp back seeing some activity as more realistic rates are emerging.

A one year bond maturing on 01.10.2022 was quoted 7.40/8.00 percent.

A 15.11.2023 bond was quoted at 8.20/30 and also traded, dealers said.

A 15.09.2024 bond was quoted at 9.00/20 percent.

A 01.12.2024 bond was quoted at 9.00/30 percent.

A 01.08.2025 bond was quoted at 9.50/75 percent

A 15.10.2027 bond was quoted at 10.25/50 percent.

The Pandora Papers, which has exposed the secret wealth and dealings of world leaders, politicians and billionaires in one of the biggest leaks of financial documents, last night stirred up the high ranks within the government and political circles in Sri Lanka as former parliamentarian Nirupama Rajapaksa was documented in it.

The papers have been put together by the International Consortium of Investigative Journalists (ICIJ) and over 600 journalists the world over, in the largest collaboration in journalism history.

The Daily Mirror learns that the matter will be discussed within the high ranks today as some leaders such as Pakistan Prime Minister Imran Khan have already vowed to investigate the claims against all the citizens documented in the papers.

Nirupama Rajapaksa has been documented in the Pandora Papers as a ruling party member.

She was a former member of parliament.

According to the Pandora Papers, it is alleged that Nirupama Rajapaksa and her husband Thirukumar Nadesan together controlled a shell company they used to buy luxury apartments in London and Sydney and to make investments, according to leaked files.

It is alleged that Nadesan set up other shell companies and trusts in secrecy jurisdictions, and he used them to obtain lucrative consulting contracts from foreign companies doing business with the Sri Lankan government and to buy artwork.

According to the Pandora Paper leaks, in 2018, one of the companies, Pacific Commodities, transferred 31 paintings and other South Asian art pieces to the Geneva Freeport, an ultra-secure warehouse where assets are not subject to taxes or duties.

In confidential emails to Asiaciti Trust, a Singapore-based offshore services provider, a long-time adviser of Nadesan’s put his overall wealth, as of 2011, at more than $160 million. ICIJ said it couldn’t independently verify the figure. It was alleged that Asiaciti Trust managed some of Nadesan’s offshore companies and trusts, with assets valued at about $18 million, according to an ICIJ analysis.

The firm listed him as a politically connected individual because of his wife’s political position. asiaciti kept the family as clients even after Nadesan was charged with embezzlement in 2016.

Rajapaksa and Nadesan declined to answer ICIJ’S questions about their trusts and companies, the ICIJ said.