Deputy Minister claims some police officers paid salaries by underworld figures

Deputy Minister of Public Security, Attorney-at-Law Sunil Watagala, alleges that some police officers are receiving regular payments from underworld and drug trafficking activities.

Speaking during Ada Derana’s current affairs program “Big Focus”, he emphasized that certain measures taken to eradicate the underworld activities and drug trafficking cannot be disclosed to the media.

“There are police officers who receive their salaries from the underworld and drug trafficking activities. Following intelligence reports, we had to transfer almost the entire police force in Ruwanwella. Not only that but also in Avissawella. These individuals are a network. The underworld’s money is flowing into the hands of the police,” he added.

Deputy Minister Watagala also noted that discussions had been held with the Acting Inspector General of Police (IGP) regarding the issue and revealed that the current leader of the underworld is operating in Mathugama.

“We see this as a serious problem. It is difficult to disclose all the measures we have taken through the media. Some decisions have been made at the ministerial level regarding drugs and the underworld activities,” he said.

The Deputy Minister further mentioned that the implementation of these measures has been entrusted to a team led by the police chief.

Furthermore, he urged all police officers to honour their duty to the public and respect their mandate.

“Yesterday and the day before, underworld incidents surfaced again. There is also narrow, opportunistic politics involved in this,” Deputy Minister Watagala claimed.

SJB welcomes SL’s credit rating upgrade

Samagi Jana Balawegaya MP Dr. Harsha de Silva has welcomed the recent upgrade of Sri Lanka’s credit rating by leading global agencies, Moody’s and Fitch Ratings, calling it a significant milestone for the nation’s economic recovery.

Speaking at a press conference held yesterday, Dr. de Silva remarked, “The credit rating improvement is not only good news for the Government but also for the entire economy, including private sector investors who were severely impacted by the debt crisis.” He highlighted how the downgrade of Sri Lanka’s credit rating had discouraged foreign investment, citing the example of India’s Adani Group, which raised concerns about credit risks during negotiations for electricity projects.

Despite the positive development, Dr. de Silva cautioned that Sri Lanka is still not in a position to access international financial markets for borrowing. He attributed the credit rating upgrade to the initiatives undertaken by the previous Government, including key legislation and economic stabilisation efforts, rather than new policies introduced by the current administration. “The agreement reached prior to the Presidential Election has remained unchanged and has directly contributed to this credit rating improvement,” he stated.

He also criticised the National People’s Power (NPP) Party for making unfulfilled promises, such as proposing an alternative debt sustainability analysis during its election campaign. “False promises by the NPP misled the people, but continuing with the previously established economic reforms has proven beneficial for the country,” he asserted.

Dr. de Silva noted Sri Lanka’s recent exit from default status after it was declared a defaulter on 12 April 2022, following its announcement of an inability to repay external debt. While he acknowledged this as a step forward, he explained that the country remains unable to re-enter the international financial market or issue sovereign bonds. He estimated that it would take until at least 2027 for Sri Lanka to regain active participation in global financial markets, provided the Government adheres to its reform agenda.

Discussing the nation’s economic progress, Dr. de Silva pointed to a 5.5% growth in the third quarter of 2024 and emphasised the importance of continuing reforms to maintain upward momentum in credit ratings. “The stock market has shown signs of improvement, but investor confidence has been undermined by misleading statements from the NPP Government. Continuity of President Ranil Wickremesinghe’s economic program has been the foundation for stabilising the economy,” he added.

He also stressed the need for disciplined economic management to secure a substantial loan from the International Monetary Fund (IMF) in 2027. While acknowledging the significant challenges ahead, Dr. de Silva expressed optimism that Sri Lanka’s standing in the global financial community could improve if reforms are sustained.

Reflecting on the pre-election promises of the NPP, Dr. de Silva criticised their claim that the debt sustainability analysis could be altered, arguing that such changes would have jeopardised the country’s credit rating improvements. Instead, he emphasised that the steady continuation of the existing economic framework has been instrumental in fostering the nation’s recovery.

Cabinet Approves Draft Bill to Recall Nominations for the Local Government Elections

The Cabinet approved a new draft bill for the calling of fresh nominations for the local government elections, during yesterday’s cabinet meeting.

Deputy Minister of Provincial Councils and Local Government Ruwan Senarath said that the new draft bill was prepared based on the Cabinet’s decision to call for fresh nominations for the local government elections.

Ministry of Public Services, Provincial Councils and Local Government confirmed that the bill was approved by the Attorney General as well.

The draft bill is scheduled to be presented to Parliament next month.

Meanwhile, Chairman of the Election Commission R. M. A. L. Rathnayake said yesterday that the date for the local government elections will be announced once the Local Government Elections Act is amended.

He further added that the election date will be declared, once the necessary procedures are completed.

President Anura Kumara Dissanayake recently announced that steps are being taken to hold the local government elections before the 2025 Sinhala and Tamil New Year.

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USAID collaborates with Open University to offer first certificate program in migration law and policy

The United States through the United States Agency for International Development (USAID) yesterday announced the successful completion of the first certificate program in migration law and policy in Sri Lanka by 69 professionals who now have the tools and knowledge to take the fight against human trafficking back to their communities.

The six-month course was a joint effort between USAID’s “Empowering Civil Society to Combat Human Trafficking” project (ECCT) and the Open University of Sri Lanka (OUSL). The SAFE Foundation implements ECCT. This course on migration and law marked the first ever collaboration between a civil society organisation and a leading Sri Lankan university to provide a structured academic course.

The students, who included government officials, journalists, youth, volunteers, and members of civil society, studied migration laws and policies at the national level via the online course. Fifty of the students took the course in Sinhala and the remaining studied in Tamil. The students received their certificates on 20 December in a ceremony at the OUSL Department of Legal Studies in Nawala.

“Human trafficking is a global problem but the fight against it starts locally, in every community,” said USAID Sri Lanka and Maldives Mission Director Gabriel Grau. “The United States is proud to partner with Sri Lankan institutions and local professionals on migration law and policy so they can work in their communities to encourage safe migration and stop human trafficking.”

The course covered topics that included migration and state responsibility in the context of international migration; the international legal framework to address human trafficking and smuggling; prevention of irregular migration practices; and the rights of victims, returnees, and reintegration. In addition to bringing the battle against trafficking to their communities, certification will increase the graduates’ confidence, enabling them to engage with government officials, private sector officials, and communities at divisional, district and national levels.

The US State Department’s 2024 Trafficking in Persons Report (TIP) recognised progress in Sri Lanka toward fighting TIP, keeping the country at its Tier 2 status. But the report also urged the Government of Sri Lanka to strengthen its efforts in prosecuting and investigating TIP crimes, and identifying TIP victims among migrant workers, among other actions.

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Sri Lanka and India to sign MoU for Rs. 2,371 mln development projects in East

The Cabinet of Ministers has approved the signing of a Memorandum of Understanding (MoU) aimed at strengthening socio-economic development and enhancing bilateral cooperation between India and Sri Lanka.

This initiative, presented to the Cabinet by President Anura Kumara Dissanayake, will allocate Rs. 2,371 million for various development projects in the Eastern Province.

Accordingly, the focused areas of these projects include education, health, agriculture, irrigation, tourism, and community empowerment.

A total of 33 projects have been identified under this initiative, which will focus on improving infrastructure, boosting economic development, and fostering the social empowerment of the people in the Eastern Province.

Consequently, the Indian government is set to provide Rs. 2,371 million for these projects, with specific allocations including Rs. 315 million for education, Rs. 780 million for health, Rs. 620 million for agriculture, and Rs. 230 million for fisheries.

Accordingly, the Cabinet has approved the signing of the MoU to proceed with this project.

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Tri-forces security for ex-presidents to be withdrawn today

The tri-forces security provided to former Presidents will be withdrawn effective from today (23) as announced by public security minister Ananda Wijepala.

The Defence Ministry said instructions for their withdrawal have been issued to the commanders of the tri-forces.

Only police security will be assigned for the security of former Presidents hereafter.

Wijepala told parliament last week that Mahinda Rajapaksa has been provided with 228 tri-forces personnel for his security.

For Maithripala Sirisena, Gotabaya Rajapaksa and Ranil Wickremesinghe, the tri-forces personnel assigned were four, 188 and 57 respectively, he said.

This follows a government decision to curtail security in view of high costs.

Police personnel adequate for their protection would be given without compromising their protection.

Security provided to them will be reviewed every six months, said the government.

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Chinese ship ‘Peace Ark’ to stay in Colombo till December 28

The Chinese People’s Liberation Army Navy hospital ship ‘Peace Ark’ arrived in Colombo on a formal visit yesterday.

‘Peace Ark’ is a 178-meter-long hospital ship, crewed by 310 personnel under the command of Captain Deng Qiang.

As part of the official visit, the hospital ship ‘Peace Ark,’ in collaboration with the Embassy of the People’s Republic of China in Sri Lanka, will organize medical treatments and clinics onboard. These will be conducted by the medical staff of ‘Peace Ark’ and the Sri Lanka Navy Medical Department.

In addition, the crew members of the ship will explore some of the tourist attractions in the country during their stay in Colombo. They will also take part in certain programs organized by the Sri Lanka Navy to further enhance camaraderie between both navies. Additionally, Sri Lanka Navy personnel, as well as officer trainees from the Naval and Maritime Academy and Kotelawala Defence University, will have the opportunity to participate in briefings on the operational functions of the ship.

Concluding the formal visit, the Chinese People’s Liberation Army Navy hospital ship ‘Peace Ark’ will depart the island on December 28.

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Sri Lanka’s stock market sees over 35-pct growth under new leader, turnover doubles

Sri Lanka’s main stock index in the Colombo Stock Exchange has seen more than 35 percent growth and the daily turnover has more than doubled since the presidential election and analysts cites the return of confidence as the key reason.

The main All Share Price Index (ASPI) has gained 35 percent since Anura Kumara Dissanayake was elected as the president through December 23 close, the official data showed.

The average daily turnover, which was 1.49 billion before the September 21 election has more than doubled to 3.74 billion rupees after the election.

“More than the election, it is about uncertainties going out of the window,” Dimantha Mathew, Chief Research & Strategy Officer at First Capital Holdings PLC, told EconomyNext.

“There were political and policy level uncertainties. There were also uncertainties over the continuity of the IMF programme and the completion of the debt restructuring. However, they have been managed well. With that, the investor confidence has significantly improved.”

“Falling interest rates also have contributed to the current situation. The investor mindset has changed and now they see the equity market as an avenue for higher return.”

However, the market has been mainly boosted by local buying with foreign investors still on the selling side, the official data showed.

The bourse which had suffered a 5.3 billion foreign outflow up September 20 this year has extended the offshore selling by another 4.23 billion rupees under Dissanayake government.

Analysts, however, say the market has still room to grow.

“The index gain is also because investors see increased corporate profitability,” Mathew said.

“Our valuation is around 9 times. This means our stocks are still cheaper. But, of course we are still not out of woods.”

When 13-A is a ‘part of the Constitution’ By N Sathiya Moorthy

Briefing newsmen on President Anura Kumara Dissanayake’s New Delhi visit in Colombo, Foreign Minister Vijitha Herath made a startling commitment of sorts. He conceded that they did not discuss the ethnic issue, implying a political solution, hence the subject did not find a mention in the Joint Statement issued at the conclusion of a hugely successful visit.

Minister Herath had reasons and justifications why they did not discuss a political solution to the vexatious issue, which has become a customary subject for bilateral discussion at all levels, and thus also of joint statements, against at whatever level. According to him, the Thirteenth Amendment was already a part of the (Sri Lankan) Constitution, and there was nothing more to discuss in the matter.

As is known, 13-A facilitated by India through the instrumentality of the Indo-Sri Lanka Accord, both of 1987 vintage, provides for power-devolution to (nine) Provinces created under the accompanying Provincial Council Act (PCA), also of the same year. India went beyond facilitation, unlike in the case of the earlier Thimphu Talks, and LTTE-slain Prime Minister Rajiv Gandhi signed the Accord with late President J R Jayewardene, the author and architect of 13-A and the PCA.

Today, when the incumbent Foreign Minister declares that there was nothing to discuss beyond 13-A, does he imply that the Dissanayake-led NPP government was ready to implement all provisions of the Amendment, as originally passed? If so, will the Government restore powers that were originally conferred to the Provinces under 13-A, in Education and Health sectors but were withdrawn one after the other, in the name of creating ‘National Schools’ and ‘National Hospitals’?

More importantly, will the Dissanayake Government implement 13-A provisions on Police and Land Powers for the Provinces, which were not considered for implementation by successive Governments in the past? Or, is it that Dissanayake and Herath were only indicating that it’s only thus far and no more – and that there was no question of the Colombo Government conceding ‘federalism’, as sought by almost every other Tamil party ahead of the twin polls?

By implication it also meant that ‘federalism’ was not a part of 13-A, and that being the case, India had no role to play. Even without it, the Tamil parties have been shifting from one position to the other and back to the former, over the past several years. Barring Gajendra Kumar Ponnambalam, other Tamil leaders and their parties had penned a common missive to PM Modi not very long ago, asking New Delhi to pressure Colombo (then under President Wickremesinghe) to concede 13-A wholesale – with no reference whatsoever to ‘federalism’, their hobby-horse, off again, on again.

Contrived charade

Incidentally, whenever the 13-A question had arisen after the LTTE had launched fresh offensives, post-Accord, and whenever the Government of the day had commenced fresh negotiations with the same set of Tamil leaders since then, the former invariably ended up talking about a new Constitution, wherein they either implied that the agreed points would be incorporated in the existing Constitution or a brand new Constitution would be put forth, after discussing the pending proposals with other stake-holders, too.

It applies equally to the holier-than-thou ‘Chandrika Package I & II’, the latter being a wanton dilution of what was originally agreed upon with the combined Tamil leadership. The general belief was that changes were required between I and II, to win over the Sinhala South, where not only ‘Buddhist-nationalist majoritarians’ but also the political Opposition would not help to obtain a two-thirds majority in Parliament.

Looking back, it has to be readily conceded that the Chandrika Packages were as much a ploy as those that followed to deny the Tamils their due – or, what was accepted by the government of the day. There are dispassionate reasons now to believe that President Chandrika Bandaranaike-Kumaratunga, CBK, combined the ‘ethnic package’ with her proposal for advancing the presidential polls, with a clear knowledge that the Opposition UNP would reject it wholesale. That would not have been possible if the Package and the presidential term/poll Bill had been de-linked and put to separate votes in Parliament.

In doing so, now-disintegrated SLFP’s CBK was more than helpful to the equally forgotten UNP and its continually discredited ‘Leader’, Ranil Wickremesinghe, then the Leader of the Opposition in Parliament. Imagine a situation in which the CBK government had de-linked the two Bills and forced the UNP to take a stand on the ‘ethnic package’? Ranil and the UNP would have been cornered, and he would have also lost the opportunity to dramatize their rejection of the combo Bill by burning it within the Parliament’s Chamber.

In sum, it was a politico-constitutional sacrilege that had been well thought out in advance. Thankfully it has not been repeated or replaced by a worse sin of the kind. Yet, the fact remains, the ‘Chandrika Package’ has remained the most contrived charade of the kind that looked more convincing than even the 13-A, which, as it turned out not one of JRJ’s successors, was keen on implementing – full, half or quarter.

That includes the JVP-initiated legal proceedings, at the end of which the Supreme Court de-merged the Northern and Eastern Provinces, which was a bedrock of the Indo-Sri Lanka Accord. Needless to say when Minister Herath talks about 13-A in all seriousness or innocence or both, he is also implying a de-linked North and East. Then and now, it is another matter, keeping the North and East together as a single provincial unit was/is impractical, unconvincing and artificial.

It is another matter that then or now, such a course would not have won an exclusive referendum in the East, as provided in the Provincial Council Act. Such a course implied that the East was merging – or, being merged — with the North and not the two of them were merging on their own volition.

Tipping point

Truth be acknowledged, the closest that the two sides came to being able to implement a new package acceptable to the Tamils especially was when the post-war Mahinda Rajapaksa government initiated political negotiations with the TNA. The negotiations did progress though there were inherent impediments, including the question of re-merger of the North and the East. The expectation was that the TNA would not be unwilling to accept the ground reality if only they got a face-saving commitment on Police and Land Powers.

The two sides did come to a general agreement on Land Powers, according to reports. They were also not travelling away from a loose consensus on Police Powers, though from time to time, the government negotiators might have been perplexed by the contra indications that came to them from the top, between one session and the next. Yet, neither side had lost hope.

The tipping-point came about when M A Sumanthiran, then a upcoming post-war leader introduced to the TNA and the nation, went to town about the ongoing US-led UNHRC process ahead of the maiden bid in March 2012. Sumanthiran claimed, rather owned up, the TNA’s pressure on the US as the main reason for the initiation of the UNHRC process after Sri Lanka had countered a pending post-war draft resolution with a supportive counter from, yes, India and China, otherwise adversaries.

Whoever had thought out the strategy, especially of making the TNA mouth public support for the US-led process, had obviously concluded that any governmental indication in that first year that it was up to putting the ‘brave soldiers’ up for a ‘Nuremberg-like’ trial, won the day. Subconsciously, every Sri Lanka stake-holder had recent memories not only of Mullivaikkal but also the ‘Saddam Hussein trial and execution’ running in his mind. The contradictory messages from both were confusingly confounding, causing the political talks to end abruptly.

No-brainer, yet…

Today, after the JVP-NPP won the highest number of votes in the key Jaffna electoral district and bagged the highest number of three of six parliamentary seats from the district, and also fared even better elsewhere across the Tamil land in the North and the East, there isn’t much that the Tamil parties and their leaders could crow about, as their achievements from the past. As if on cue, even as the results were pouring in, each and every one of them, rather than discussing or debating their collective failure as the broken conscience of their Tamil people, began talking about ‘Tamil nationalism’, political solution – and now back to ‘accountability issues’.

This is a no-brainer, and they all know it all the same. Their immediate task, as is the case with the JVP-NPP at the national-level, is to consolidate their collective electoral positions in the Tamil areas, through the local government polls, which AKD has now promised before the twin Sinhala-Tamil New Year, in mid-April, followed by the even more delayed Provincial Council polls later next year. For them to try and resurrect their fallen image and vote-shares, they need to revive the ‘Tamil nationalist’ cause, which has failed them all in the parliamentary poll more visibly than in the presidential election.

But will it work? And will the Tamil parties and leaders come together, as initiated by Gajan Ponnambalam, now after the parliamentary election? More importantly, does the present leadership of the multiple Tamil outfits, both political and social, ready to step aside for good and hand over the torch to the younger generation? They are either old, discredited, or both.

They are not going to do it, and they are unlikely to woo back those voters that had gone the NPP way in the parliamentary election. Which means, whether it is 13-A or not — it certainly is not going to be federalism – a political package, new or revival of the old, would depend entirely on the NPP’s performance in the twin polls in the New Year. If they sweep both as with the parliamentary election, they would feel more confident than already.

They can decide and also convince the southern Sinhala nationalist constituency on whatever they decide – 13-A, plus or minus, or none. Only post-war Mahinda leadership could have sold that kind of package to the southern Sinhala constituency.

Conversely, if the NPP fails to fare well in either or both polls, and in relative terms, they would have to fall back on their traditional Sinhala-Buddhist nationalist constituency. Rather, they cannot afford to risk anything…

And thereby hangs a tale!

(The writer is a Chennai-based Policy Analyst & Political Commentator. Email: sathiyam54@nsathiyamoorthy.com)

Moody’s raises Sri Lanka’s rating after debt overhaul approval

Credit ratings agency Moody’s on Monday raised Sri Lanka’s long-term foreign currency issuer rating to ‘Caa1’ from ‘Ca’ with a stable outlook, after the country’s creditors approved a $12.55 billion debt overhaul last week.

Sri Lanka’s credit profile reflects the reduction in external vulnerability and government liquidity risk, and prospects for fiscal and debt sustainability, Moody’s said in a report.

“Sri Lanka’s credit fundamentals have improved over the past two years… external vulnerability and government liquidity risk have both declined from elevated levels,” Moody’s said.

The island nation had defaulted on its foreign debt for the first time in May 2022 due to its high debt burden and dwindling foreign exchange reserves.

Its bondholders last week signed off on the government’s proposal to restructure its international bonds as the island nation recovers from its worst financial crisis in decades.

The rating action marked the conclusion of a review Moody’s initiated last month, in which it had indicated a possible upgrade.

Ratings agency Fitch on Friday raised Sri Lanka’s long-term foreign-currency default rating to ‘CCC+’ from ‘restricted default’.

Source: Reuters