Reveal who really owns Rosetti Ltd in Jersey Island: Vijitha

The National People’s’ Power (NPP) MP Vijitha Herath today urged the Government to reveal the actual owner of the Rosetti Ltd., the Company which was set up by former parliamentarian Nirupama Rajapaksa and her husband Thirukumar Nadesan in the Jersey Island as exposed by the Pandora papers.

He told Parliament that the Government could not keep quiet on the incident claiming that it was a personal account and that the Government has a responsibility to educate the people on this matter.

He said the Government should reveal who had the official registration of Rosetti Ltd. and whether the bank account connected to it was under the name of Nirupama Rajapaksa or Thirukumar Nadesan or if it was a joint-account.

“According to Pandora Papers, the account was opened in 1991. The Money laundering Act was enacted in Sri Lanka in 2006. It should be revealed whether money had been channelled to this account after the Money laundering Act was enacted. How much money has been channelled and how the money has been channeled,” he said.

The MP said several individuals such as Vidya Amarapala were listed in such papers for similar incidents and said this was the first time where a politician was listed in an incident of this nature.

“The previous Government did not take any action when Vidya Amarapala’s name was revealed. He fled to Australia and the incident went uninvestigated thereafter,” he said.

He said the Government should reveal its stance whether action would be taken against the culprits under Money Laundering Act, if money had been channeled to the particular account after 2006.

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Sri Lanka reports 40 Covid-19 deaths on Tuesday, toll rises to 13,142

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.

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Sri Lanka prints Rs106.7bn rupees to fully sterilize interventions, SRR hike effect

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.

Indian Foreign Secretary calls on PM Rajapaksa

Foreign Secretary of India Harsh Vardhan Shringla called on Prime Minister Mahinda Rajapaksa at Temple Trees this morning (04).

At the outset, Secretary Shringla conveyed the “very personal greetings” of Indian Prime Minister Narendra Modi and the best wishes of External Affairs Minister Dr. S. Jaishankar, the PM’s Office said.

During the meeting, the two delegations discussed a number of sectors of mutual cooperation, including the further strengthening of bilateral relations, ongoing projects, tourism and the promotion of Buddhist ties.

Prime Minister Rajapaksa appreciated Prime Minister Modi’s initiative to promote Buddhist ties. Secretary Shringla said it was a priority area of Prime Minister Modi.

Last year, during the virtual bilateral summit between the two prime ministers, the Indian Prime Minister announced a $15 million grant for the promotion of Buddhist ties that aimed to deepen people-to-people linkages between the two countries.

Secretary Shringla said India is also looking forward to receiving the first pilgrims flight, from Sri Lanka, to the Kushinagar Airport after it was upgraded as an international airport. This was also a request made by Prime Minister Modi during the virtual summit last year.

Another topic of discussion centered around the resumption of tourism. With the vaccine drives in both countries progressing well, Secretary Shringla spoke of the importance of resuming connectivity, the statement said.

India has been Sri Lanka’s top source of tourists with inbound tourism from India making up about 18% of total tourists arrivals in pre-COVID-19 years.

The Indian Foreign Secretary is currently in Sri Lanka on a four-day official visit.

The Indian Foreign Secretary is also expected to meet with President Gotabaya Rajapaksa for talks.

Mr. Shringla arrived in Colombo on Saturday on a four-day official visit, his first official visit to the island nation, following an invitation from his Sri Lankan counterpart Admiral (Retd) Prof Jayanath Colombage.

Foreign Secretary Shringla visited the Temple of the Sacred Tooth Relic in Kandy yesterday before traveling to Trincomalee and Jaffna.

He was extended a warm welcome by Indian Consul General in Jaffna and Chairman of the Northern Provincial Council, Mr. C.V.K Sivagnanam. Officials from Civil Aviation Authority briefed the foreign secretary about the development and rehabilitation of Palali Airport.

Foreign Secretary Shringla also visited the iconic Jaffna Cultural Centre built with Indian grant assistance.

He also visited the Oil Tank Farms at Trincomalee and was briefed by LIOC about the development undertaken at the Lower Tank Farms and the possibilities for further strengthening India-Sri Lanka energy partnership to enhance Sri Lanka’s energy security.

Our focus is to reacquire Trinco oil tanks: Gammanpila

While explaining that all 100 oil tanks in Trincomalee have already been handed over to India based on Indo Lanka agreements signed in 1987 and 2003, Minister of Energy Udaya Gammanpila stated that the Government’s focus is to reacquire these tanks.

He made these statements at a press conference held today (04).

Gammanpila also dismissed allegations leveled against him which claimed that he, together with the Indian Foreign Secretary, visited the tanks.

“A certain Opposition Parliamentary showed a photograph of a helicopter claiming it was myself and the Indian Foreign Secretary travelling to Trincomalee. I wish to responsibly state that I have not travelled in a helicopter with anyone since I was appointed as the Minister,” he said.

He also added that the Foreign Secretary has not even requested a discussion with him.

“According to information from India, my subject will not be a matter which will be discussed,” Gammanpila explained.

Meanwhile, in response to Ven. Dr Omalpe Sobitha Thero claims which suggest that this is an attempt to give away 85 oil tanks to India, Gammanpila stated that the country does not have that many tanks to give away.

“We do not possess 85 tanks to give away. I want remind him that the UNP has already done that,” he said.

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Pandora Papers hits the high ranks as Nirupama Rajapaksa documented in it

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.

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Indian Army chief to visit Sri Lanka to observe Mitra Shakthi

Indian Army chief General Manoj Mukund Naravane is expected to make a visit to Sri Lanka to observe the 8th consecutive iteration of the joint Exercise ‘Mitra Shakti’ between Sri Lanka and India, said Army Commander General Shavendra Silva.

General MM Naravane, PVSM, AVSM, SM, VSM, ADC, was commissioned in The Sikh Light Infantry Regiment in Jun 1980.

He held the appointment of Vice Chief of the Army Staff before assuming the appointment of the Chief of the Army Staff on 31 Dec 2019.

An all arms Indian contingent for ‘Mitra Shakti’, headed by Colonel Prakash Kumar, Commanding Officer are in Sri Lanka for the two-week long exercise.

From October 3 to 17, the India-Sri Lanka bilateral joint Exercise, designed to enhance understanding of transnational terrorism, inter-operability skills, conduct of joint tactical operations, sharing of each other’s best practices and experiences, etc will get underway with Vijayabahu Infantry Regiment (VIR) troops at the Combat Training School in Ampara.

Those 120 Indian Army personnel participate in the two-week long Exercise involving tactical level operations at the sub-unit level in an international counter-insurgency and counter-terrorism environment arrived on an Indian Air Force aircraft.

The Sri Lanka Army is represented by 120 troops of equal numbers. Under the close supervision of General Shavendra Silva, Chief of Defence Staff and Commander of the Army, Major General Nishantha Manage, General Officer Commanding, 53 Division functions as the Exercise Director with the Deputy Director of the Exercise.

The Indian contingent participating in the Exercise is commanded by Colonel Prakash Kumar of the Indian Army. Colonel Girish Godial, Colonel John Daniel and the Lady Officer Lieutenant Colonel Zulage Meera of the Indian Army as Observers will evaluate the Exercise during the final phase of the training before the Exercise culminates on 17 October 2021.

The annual training programme which has largely contributed to strengthen bilateral military cooperation, understanding and bonds of neighborly relations between both services takes place alternately either in India or Sri Lanka every year.

Adhering to COVID-19 health guidelines, the Exercise would maintain the bio bubble during its conduct.

Indian Foreign Secretary inspects Oil Tank Farm in Trincomalee

Indian Foreign Secretary Shri Harsh Vardhan Shringla inspected the Indian Oil Tank Farm in Trincomalee today.

The Foreign Secretary, who had visited Kandy earlier in the day, travelled to Trincomalee to inspect the Indian Oil Tank Farm.

Lanka Indian Oil (LIOC) officials briefed him on the developments undertaken at the Lower Tank Farms and the possibilities to further strengthen the India-Sri Lanka energy partnership to enhance Sri Lanka’s energy security.

The Foreign Secretary was also at hand for the launch of LIOC’s new product ‘Servo Pride ALT 15W-40’.

The Indian Foreign Secretary is on an official visit to Sri Lanka from 2-5 October 2021 at the invitation of the Foreign Secretary Admiral Prof. Jayanath Colombage.

The visit will contribute towards consolidating the longstanding multifaceted relations and enhance bilateral partnerships between two countries, the Sri Lanka Foreign Ministry said.

Apart from the bilateral discussion with the Sri Lankan Foreign Secretary, the Foreign Secretary Shringla’s programme includes a call on the President, Prime Minister, Minister of Finance, and the Foreign Minister.

Jagath’s appointment as Sri Lanka’s High Commissioner to Australia halted?

The government is considering halting the appointment of Dr. Jagath Wellawatte as Sri Lanka’s High Commissioner to Australia, The Morning learnt.

It is learnt that the government is looking at nominating another in place of Wellawatte.

Foreign Minister Prof. G. L. Peiris and Foreign Secretary Jayanath Colombage were not available for comment despite several attempts by The Morning to receive confirmation on the matter.

Wellawatte is the former Chairman of the Sri Lanka Insurance Corporation (SLIC) and was nominated as the High Commissioner-designate to Australia in July this year.

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Sri Lanka reports 55 Covid-19 deaths on Saturday, toll surpasses 13000

Sri Lanka Saturday reported 58 deaths due to COVID-19 after the figures were confirmed by the Director General of Health Services on Friday, October 01.

Among the deaths reported today, 38 are of males and 17 of females. The majority of deaths – 38- are of elderly people in the 60 years and above age group. Two females below the age of 30 also succumbed to the disease.

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 13,019.