Category: Featured Headlines

The United National Party (UNP) has pointed out that a general election system should be introduced for Parliament, Provincial Councils and Local Government Institutions and that 65 percent of the members should be elected under the divisional system and 25 percent under the proportional representation system.

Representatives of the UNP made these observations while testifying before the Select Committee of Parliament to Identify Appropriate Reforms of the Election Laws and the Electoral System and to Recommend Necessary Amendments, yesterday (07).

They also suggested that the number of members elected to local government bodies should be reduced by reducing the number of divisions. Whilst stating that 25 percent of the members elected to local government bodies should be women, the UNP also pointed out to the Committee the need to ensure the representation of minorities.

The Leader of the House, Minister Dinesh Gunawardena presided over the meeting. Former Minister Sagala Ratnayaka, who testified on behalf of the UNP, further stated that Parliament should be an institution with genuine representation in various electorates in Sri Lanka.

The UNP also stated that dual citizens or persons affiliated with another state should be restricted or barred from contesting at the general elections in Sri Lanka.

The party pointed out that the composition of the Parliament should reflect the demographics of the eligible voters to vote in the election as practically as possible and accordingly the members of Parliament should be elected by the voters and from the national list.

The UNP also said that the sources of funding for parties and independent groups at the general election should be revealed. They also pointed out that the expenses incurred by political parties and candidates at an election should be limited.

They were also of the view changing parties should not be allowed and if a member does change the party, he or she should automatically be removed from the party list.

The Vice Chancellor of the University of Sri Jayewardenepura, Senior Professor Sudantha Liyanage, member of the Committee of Experts appointed to analyze the proposals, presented to the Parliamentary Select Committee several models related to the local government election system at the Committee.

Prof. Sudantha Liyanage also pointed out the need to reduce the existing large number of seats in local government bodies.

The Committee Chair, Minister Dinesh Gunawardena stated that the general opinion is that the country needs a better mixed electoral system. He also pointed out the need to have a Member of Parliament responsible for a division.

Ministers Nimal Siripala de Silva, Pavithra Wanniarachchi, Douglas Devananda, Members of Parliament Anura Kumara Dissanayaka, Ranjith Madduma Bandara, Mano Ganeshan, M. A. Sumanthiran, Madhura Withanage and Sagara Kariyawasam were present at this meeting held.

Officials from the Delimitation Commission and the Attorney General’s Department were also present.

The next meeting of the Parliamentary Select Committee is scheduled to be held on the 13th of September, said the Secretary to the Select Committee, Deputy Secretary General & Chief of Staff of Parliament Ms. Kushani Rohanadheera.

The Epidemiology Unit of the Health Ministry reports that 1,141 more people have tested positive for COVID-19 in Sri Lanka, moving the daily total of new cases to 2,964.

This brings the confirmed tally of coronavirus infections reported in the country to 471,863.

A total of 388,278 recoveries have been confirmed in Sri Lanka since the outbreak of the pandemic last year.

As per official data, more than 73,000 active cases are currently under medical care at hospitals, treatment centres and homes.

Meanwhile, Sri Lanka registered 184 new COVID-related fatalities confirmed by the Director-General of Health Services on Monday (Sep. 06). The new development pushed the official death toll from the virus outbreak in Sri Lanka to 10,504.

Sri Lanka’s banks are quoting rates of Rs197/203 to the US dollar on Tuesday, stronger from around 226/233 to the US dollar a day earlier, following an official request, financial sources said.

Sri Lanka has no interbank spot market to establish a rupee/dollar price and foreign exchange is matched within banks and in an over-the-counter market.

The rupee had fallen to around 238 to the US dollar Monday, in the OTC market, financial sources said despite attempts by a group of banks to stabilize it at around 230 to the US dollar.

Bank chiefs were requested in writing by authorities to bring the rupee to near 200 levels financial sources said.

It is not clear how much dollars banks can supply at these rates. State-run Bank of Ceylon said the rates applied to transactions below 2,500 dollars. A day earlier it had applied to only 100 dollars.

Several banks said the rates applied to only small transactions.

Even tighter rationing of letters of credit could take place, they said.

Pegged currencies fall when a central bank injects liquidity stimulating credit and imports, preventing outflows from being limited to inflows of foreign exchange.

Liquidity has been mostly injected through failed bill and bond auctions, which have price controls. The new rupees are then used by the government to pay salaries and meet expenses. If a maturing debt is bought by the central bank, past deficits are monetized.

Sri Lanka’s central bank raised policy rates by 50 basis points in August and also hiked the margin commercial banks must keep with the monetary authority to 4 percent from 2 percent.

The Finance Bill which was debated in Parliament today (07) has been passed with amendments by a majority vote.

During the second reading of the Bill, Chief Opposition Whip Lakshman Kiriella called for a division and second reading of the bill was passed with 134 parliamentarians voting in favour and 44 voting against the bill.

The Finance Bill enables individuals to voluntarily disclose undisclosed taxable supplies, income and assets which are required to be publicize under some laws.

In addition, it allows the imposition of taxes on taxable income and assets.

Further, the bill will enable granting tax amenities and indemnification of individuals who voluntarily disclose taxable supplies, income or assets against liability from investigation, prosecution and penalties under specified laws.

Meanwhile, the Securities and Exchange Commission of Sri Lanka Bill, which was taken up for debate today, was passed with amendments without a vote.

Meanwhile, a resolution under the Essential Public Services Act, an Order under the Excise (Special Provisions) Act and three regulations under the Imports and Exports (Control) Act were also approved by Parliament today.

State Minister of Money and Capital Markets, and State Enterprise Reforms, Ajith Nivard Cabraal is to step down from his portfolio and resign as a member of parliament to be sworn in as the Governor of the Central Bank.

The Daily Mirror learns that Cabraal will take over the Central Bank, replacing existing Governor Professor W.D. Lakshman who will take up a senior position in the IMF.

When the Daily Mirror contacted Minister Cabraal, he neither confirmed nor denied the news.

Cabraal will be taking over the Central Bank at a time when the country is facing a foreign exchange crisis.

Minister of Finance Basil Rajapaksa states that the Government has lost Rs. 1,500-1,600 billion due to the pandemic, and the gap between Government expenditure and revenue has widened.

The Minister said this at the Parliament during the second reading of the Finance Bill today (7).

The Finance Minister admitted that the government has unnecessary expenses as well as, waste and corruption.

The country is facing a severe foreign exchange crisis while the funds of the Treasury have also reduced, however, the Opposition should assist the Government to solve this issue, he added.

He also said that the earnings of the country’s main sources of income, the Inland Revenue Department, the Sri Lanka Customs, and the Excise Department, have fallen sharply due to the country being on lockdown.

The Tourism Industry, which was also affected during the time, has also contributed to this decline, the Finance Minister said.

Rajapaksa further stated that indirect tax revenue from VAT had fallen by 75-80% due to the COVID-19 pandemic, and the largest portion of Government income was from migrant workers during the last year, however, that amount has been on the decline within the last three months.

However, the Government is currently in discussions with the International Monetary Fund and the Asian Development Bank to find a solution to the economic crisis, he added.

The Finance Minister said the government strives to become a debt-free country.

The policy of the government is to secure aid that will not be subject to political conditions and will not threaten the sovereignty of the country, he said.