Dollar shortage in commercial banks spikes dollar prices in black market in Colombo

A U.S. dollar is now being traded between Rs 222/- and Rs 225/- in the black market, sources said, despite the dollar price having been fixed between Rs 199 and Rs 202 by the Central Bank.

It said the value of the dollar has increased in the black market _in the commercial streets in Colombo city _ due to the current shortage of dollars in the commercial banks.

On the other hand, due to the speculations that the rupee would be further depreciated against the dollar, the traders in the currency black market have spiked the dollar prices.

HOwever, increasing the dollar prices is an illegal act and it is learnt that the Central Bank had warned the traders not to do so because they run their business on a license obtained from the government.

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Government denies ‘excessive’ money printing

Denying claims made by various parties against the Government regarding excessive money printing, Money and Capital Market and State Enterprise Reforms State Minister Ajith Nivard Cabraal said the Government had printed money to settle the provisional advance taken by the annual budget.

At a media briefing held at the Government Information Department, he explained the money printing that took place on 28 June amounted to Rs. 200 billion.

He said: “Every central bank in the world gives a provisional advance. That is where about 10% of the money expected to be spent from the country’s budget is given as a temporary advance for the work of that government in the particular year. This amount needs to be settled within six months.”

Cabraal further explained that as the work progresses, the government may however face difficulties in settling the particular amount within six months and that therefore, each year, during a similar period, the government requests the Central Bank to issue one day’s security with the consent of the Auditor General to settle the provisional advance.

He added: “Accordingly, the provisional advance will be settled with that amount. Again, on the next day, we will be given the provisional advance due for this year.”

Meanwhile, speaking to The Sunday Morning, former Central Bank of Sri Lanka (CBSL) Deputy Governor Dr. W.A. Wijewardena said that over the past 17 months, the total money supply for goods and services in Sri Lanka has increased by Rs. 2,400 billion and noted that this is a critical issue.

He added: “During the last 17-month period, the Government had borrowed from the Central Bank as well as from commercial banks. Those borrowings amount to Rs. 2,600 million. Therefore, the money supply is increasing.”

Dr. Wijewardena also noted that during this period, the money supply had increased by 32%.

According to the latest report by Fitch Ratings, issued on Thursday (1), Sri Lanka’s largest banks are the most susceptible to heightened sovereign risk due to their higher exposure to foreign currency-denominated government securities, and in some cases, weaker capital positions.

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Another 34 COVID-related deaths confirmed in SL

34 persons have succumbed to the novel coronavirus during the past 24 hours.

The Department of Government Information said Sri Lanka’s COVID-19 related death toll has accordingly increased to 3,191.

21 males and 13 females were among the group that succumbed to the virus yesterday.

28 individuals among those who succumbed were identified as 60 years or above while six victims were between 30 and 59 years of age.

A plea for justice for Sri Lankan Tamil refugees By V Suryanarayan

The magnificent victory of the DMK and the assumption of office by MK Stalin as the Chief Minister marks a turning point in Tamil Nadu politics. The election campaign and assurances given in the manifesto have raised hopes of the people in the state for a clean, corruption-free and efficient government and establishment of an egalitarian social and economic order. The ambition of the father of our nation was to remove the tears from every eye. It may be beyond our reach, but as long as there are tears, our work would not be complete.

In particular, the government should pay attention to the tragic plight of the nearly 1,00,000 refugees, both living in camps and outside. They have been living between fear that they would have to go back to Sri Lanka with an uncertain future and the hope that they would be conferred Indian citizenship and given a chance to get assimilated with the local people.

The DMK manifesto has succinctly spelt out two interrelated issues of the refugee predicament. On the question of voluntary repatriation of refugees, the manifesto has pointed out that the Government of India “should make arrangements and extend all support to those who wish to return to Sri Lanka”. Voluntary repatriation could be sped up if shipping service is immediately resumed between Rameshwaram and Talaimannar. The refugees could be allowed to take back, without duty, all that they have acquired over the years, such as almirahs, gas stoves, bicycles, motorcycles and three wheelers. At present, repatriation takes place through air and naturally there is a limit to what the refugees could carry back to Sri Lanka.

Repatriation is taking place at a snail’s pace. According to UNHCR sources, between 2002 and 2020, 17,718 refugees have been repatriated. According to the Policy Note 2019-20, between 2014 and March 2019, only 4,017 refugees have gone back to Sri Lanka.

Secondly, the state and Central government should impress upon Sri Lanka to confer special privileges on repatriates. It may be recalled that New Delhi conferred on displaced persons from Pakistan, for a period of 50 years, free land for the construction of houses, government loans, free medical aid, scholarships for education and reservation in government jobs. Unfortunately there is no such demand in Sri Lanka. Even the Tamil National Alliance is silent on the issue.

On the second issue, the grant of Indian citizenship, the manifesto highlights the necessity to “grant citizenship to Sri Lankan Tamils, Indian-origin Tamils (hill country Tamils) and their descendants who are in India as refugees for more than 30 years”. For the first time, a distinction has been made between Sri Lankan Tamils and Indian-origin Tamils. All Sri Lankan Tamils are Sri Lankan citizens, and, if they want to acquire Indian citizenship, would have to renounce Sri Lankan citizenship. As far as Indian-origin Tamils are concerned, many of them are stateless. It may, however, be pointed out that the Sri Lankan government had enacted a legislation in 2003 by which all Indian Tamils—stateless as well as the residue of the Sirimavo-Shastri Pact—could acquire Sri Lankan citizenship. My interactions with the refugees, spread over many years, have made me realise that the overwhelming majority would like to acquire Indian citizenship. This is especially true of the younger generation who are born in India.

The question of grant of Indian citizenship has to be analysed in the backdrop of the welcome changes introduced by the Narendra Modi Government in refugee policy. India’s refugee policy, during the earlier period, was based on three premises that Jawaharlal Nehru spelt out in the Lok Sabha in 1959 with reference to Tibetan refugees: 1) India’s hope to maintain cordial relations with China; 2) protection of the territorial integrity and security of India and 3) India’s deep sympathy for the people of Tibet. The BJP had always been concerned about the plight of Hindus and Sikhs, who had been persecuted by the Islamic states of Pakistan, Afghanistan and Bangladesh and had sought asylum in India. The result is the Citizenship Amendment Act that was enacted in 2019.

There are two obstacles in the way of Sri Lankan refugees acquiring Indian citizenship. The first is a circular issued by the Government of India to the Government of Tamil Nadu in 1983 that Sri Lankan refugees are not entitled for Indian citizenship. We should immediately demand that this circular be withdrawn so that the refugees could apply for Indian citizenship by naturalisation. The second is on the legal status of the refugees. Answering a question in the Rajya Sabha a couple of years ago, the home ministry clarified that their status is that of illegal immigrants. And, according to Union Home Minister Amit Shah, “An illegal migrant is not eligible to acquire citizenship by registration or naturalization.” We should demand that Tamil refugees be treated on par with the refugees who have sought asylum in India from Pakistan, Afghanistan and Bangladesh.

Why is New Delhi discriminating against Tamil refugees? Home Minister Amit Shah declared that Pakistan, Afghanistan and Bangladesh are theocracies, whereas Sri Lanka is not one. Is systematic discrimination and ethnic violence in Sri Lanka different from that suffered by the Hindu and Sikh minorities in Pakistan, Afghanistan and Bangladesh? Though constitutionally, Sri Lanka is not a theocracy, the Constitution stipulates that it is the duty of the state to protect and foster Buddhist religion. According to Hindu organisations, nearly 200 Hindu temples have been desecrated by Buddhist goons since the dawn of independence. It was the burning alive of a Brahmin priest in Panadura, among other things, that made LTTE founder Prabhakaran take up arms against the government. Arson, murder, loot and rape, whether committed by a Muslim or a Buddhist, remain the same. A criminal does not become a saint if he is a Sinhala Buddhist.

In a landmark judgment delivered on 17 June 2019, Justice G R Swaminathan of the Madurai Division of the Madras High Court instructed the Indian government to consider the applications for citizenship submitted by Indian-origin Tamil refugees living in the Kottapattu camp. Two years have elapsed, but the Kumbakarnas in the home ministry have not woken up. This is an appropriate time for the TN government to appeal to the Supreme Court for the issue of a writ of Mandamus to compel the home ministry to implement the recommendations of Justice Swaminathan.

I had the good fortune to interact with the Malaiha Tamil refugees in the Kottapattu camp on several occasions. They live, as I stated earlier, between fear and hope. We in Tamil Nadu can understand their predicament only if we realise that we can all become refugees. As Benjamin Zephaniah, the refugee poet, has written: We can all be refugees, nobody is safe. / All it takes is a mad leader or no rain to / bring forth food. We can all be refugees. / We can all be told to go. We can be hated / by someone for being someone.

V Suryanarayan
Founding Director (Retd), Centre for South & Southeast Asian Studies, University of Madras
(suryageeth@gmail.com)

Sri Lanka and Russia discuss ways to boost economic and technical cooperation

A meeting of the Co-Chairs of the Sri Lanka-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation took place in a video conference format on 15 June.

The Co-Chairs discussed the development of existing and promising areas of cooperation in detail at the meeting.

The Russian side was headed by Federal Agency for Fishery Head Ilya Shestakov and represented by the officials from the Federal Agency for Fisheries, Ministry of Economic Development, Federal Customs Service, Ministry of Energy, Ministry of Industry and Trade, Rosinfokominvest JSC.

The Sri Lankan side was headed by Ministry of Trade Secretary Badrani Jayawardana and represented by officials from the Ministry of Trade, Foreign Ministry, Department of Commerce and Sri Lanka Embassy in Russia.

In his welcome speech, Co-Chair of the Russian side Ilya Shestakov emphasised that Sri Lanka was a longstanding and reliable partner of Russia in South Asia. He further stated that Russia was convinced that cooperation between the two countries had a significant potential for further development and it was prepared to work together with Sri Lanka for the successful implementation of the areas agreed by both parties.

In her opening remarks, Co-Chair of the Sri Lankan side Badrani Jayawardana mentioned that Russia being a longstanding trading partner with Sri Lanka, it was obvious that a number of untapped opportunities are available to expand bilateral trade. Further, both sides would be able to strengthen ties in other areas such as investment, tourism and science and technology through proceedings of the Intergovernmental Commission.

The Russian side agreed for further cooperation in the customs affaires and assistance for mutual trade. Cooperation in the fields of energy, chemical, pharmaceutical and agriculture were also discussed. The importance of organising the proposed working group on agriculture between the two countries and the Russian-Sri Lankan Fisheries Commission at the earliest, was highlighted. Cooperation in the IT sector was also in the agenda of the meeting.

The Sri Lankan side outlined in detail about ways and means of expanding market access in the gem and jewellery sector, Ceylon tea, and fisheries sector in the Russian market, and briefed on the issues that are faced by Sri Lankan partners. In the sphere of technical assistance, the Sri Lankan side requested R&D for improvement of the pharmaceutical sector, agro-based products, cooperation in the establishment of food safety management facility and improving of its standards.

The Russian side proposed, if the sanitary and epidemiological situation permits, to hold the third session of the Sri Lanka-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation in offline format during autumn 2021 in Moscow. The Co-Chairs meeting was concluded with remarks that the forthcoming third session of the Sri Lanka-Russia Intergovernmental Commission would be the right platform to discuss, at length, the ways and means of enhancing the bilateral cooperation between the two countries.

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Champika Ranawaka says he is now ready to give leadership

SJB MP Patali Champika Ranawaka yesterday said the ‘43rd brigade’, the movement led by him, is ready to give leadership to a common political platform against the ruling party.

Mr. Ranawaka told a press conference that he had already explained about the 43rd Brigade to Opposition Leader Sajith Premadasa on the role played by it.

“Mr. Premadasa is not involved in the 43rd Brigade. But we have already informed him about the role played by the 43rd Brigade,” he said in response to a question raised by journalists. “I don’t believe in individual playing. Therefore I would like to say that 43rd Brigade is ready to give the leadership to a common political platform against the present government. The 43rd Brigade is involved in building a new breed of leaders who would become an alternative to the present government,” he added.

Mr. Ranawaka said political movements such as Pivithuru Hela Urumaya led by Minister Udaya Gammanpila are invited to join a common platform against the present regime.“we will not invite individuals to join the common platform but would like to invite other political movements to join us,” he said in this regard.

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Public dismayed by actions of Govt -SLFP

The Sri Lanka Freedom Party says the youth and the general public are dismayed by the actions of the Sri Lanka Podujana Peramuna-led government.

Senior Vice President of the SLFP Prof. Rohana Luxman Piyadasa said the country is facing a political and economic crisis, at present.

Speaking to media in Kandy today, Prof. Rohana Luxman Piyadasa said the public will continue to keenly observe the moves of the government which promised to usher in an era of prosperity.

On a separate note, Rohana Luxman Piyadasa said the government started attacking the constituent parties of the SLPP-led alliance during the last Parliamentary election.

He said the SLFP arrived at separate agreements with the President and the SLPP before the election but they were violated as soon the new government was formed.

Rohana Luxman Piyadasa said the SLFP did not received the number of Ministerial and the national list posts, as agreed before the election.

He said former Minister Basil Rajapaksa was at the forefront in creating issues between the SLPP and SLFP.

Rohana Luxman Piyadasa said the SLPP members have now stated attacking other political leaders within the alliance and are even attempting to remove Minister Udaya Gammanpila from his post.

He added that although Basil Rajapaksa is expected to return to Parliament and become a Minister, it is unlikely that the public will receive massive concessions.

Duminda pardon: Slain former Sri Lanka MP’s family reluctant to go to int’l community

Slain former Sri Lanka MP Bharatha Lakshman Premachandra’s family has expressed reluctance to take the matter of the controversial presidential pardon granted to murder convict Duminda Silva before the international community.

Premachandran’s widow Sumana Premachandra told reporters Friday (02) that the family does not wish to hurt Sri Lanka’s standing in the world which has already taken a beating over a number of issues.

“We have been thinking about it. Sri Lanka is becoming unpopular in the international community for various reasons. If we take this issue before them, it will further affect things like GSP Plus and foreign loans,” she said.

The European parliament adopted a resolution on June 10 calling for the repeal of Sri Lanka’s Prevention of Terrorism Act (PTA) and inviting the European Union (EU) Commission to consider temporarily withdrawing Sri Lanka’s access to the Generalised Scheme of Preferences Plus (GSP+) concession.

 

International organisations have criticised the move. The United Nations Human Rights Commission said Silva’s pardon is another example of selective, arbitrary granting of pardons that weakens rule of law and undermines accountability.

The Human Rights Watch said on June 29 that Silva’s release highlights the need for genuine rule of law in Sri Lanka.

Mrs Premachandra said since the release of Silva, civil society activists, human rights groups and friends from Sri Lanka and abroad have been asking the family about their next step.

“It is the poor people in the country who will have to face the consequences. Not the president or those dreaming about becoming president or the Rajapaksa royal (raja) family,” said Premachandra.

However, the family has yet to arrive at a final decision, she said.

Silva’s release could also pose a threat to the lives of her family, said Premachandra.

“If any harm comes on any of us, President Gotabaya Rajapaksa should be responsible for it,” she said.

Premachandra said that the Bar Association of Sri Lanka (BASL) and her daughter former MP Hirunika Premachandra have written to President Gotabaya Rajapaksa seeking an explanation on the legal basis of Silva’s pardon.

“The president has not responded to either of the letters. I hope he’ll at least respond to the BASL,” she said.

 

Silva was released from prison on a “special presidential pardon” on June 24. The former MP, along with two others, was sentenced to death over the murder of Premachandra that occurred in 2011. Silva’s release from prison had been speculated since the change of government in 2019, though no such move had been initiated until last month.

Schools with less than 100 children to reopen in July: Minister

The Education Ministry is hoping to launch a practical program to open schools with less than 100 children in July following recommendations from the health sector, Education Minister, Professor GL Peiris said.

He said the Ministry came to such a decision after having a discussion with the President yesterday. The above decision was taken as the first step and in the face of the urgent need to re-open schools that have been closed due to the COVID epidemic and with the aim of providing education to all.

Accordingly, 2,962 schools, including 1,439 schools with less than 50 children, and 1,523 schools with 51-100 children, will be re-opened in July. Other schools are expected to open as part of a special plan.

To implement the decision, the President said that it was compulsory to vaccinate all teachers in the first place before re-opening the schools, the Minister said.

Providing vaccinations for teachers, officials and principals, parents will be able to send their children to school with confidence.

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Gazette notification issued, outflow of forex restricted

A special gazette notification has been issued to restrict the flow of foreign currency out of the country.

The relevant gazette notification has been issued with the signature of Prime Minister Mahinda Rajapaksa.

Accordingly, remittances from an asset in Sri Lanka and funds received by an emigrant as cash prizes under the Migration Allowance, have been suspended.

It also limits the repatriation of emigrant funds to a maximum of US $ 10,000 or its equivalent, while the general immigration allowance for migrants is limited to a maximum of US $ 30,000 or the equivalent at the relevant time.

The relevant gazette notification has taken steps to subject the repatriation of migrant provident funds, pensions or such benefits to a maximum of US $ 30,000 or equivalent.

The issuance of reciprocal remittances or foreign exchange for Sri Lankans who have obtained residence or temporary residence visas in a country other than Sri Lanka is limited to a maximum of US $ 20,000.