Sri Lanka’s economy to contract before recovery in 2024 – ADB

The Asian Development Bank’s (ADB) annual flagship economic publication, the Asian Development Outlook (ADO) April 2023, forecasts Sri Lanka’s economy to contract further in 2023 before it begins a gradual recovery in 2024, as the country navigates an unprecedented economic crisis.

The economy contracted by 7.8% in 2022 and is forecast to contract by 3% in 2023 as it continues to grapple with the challenge of debt restructuring and balance of payments difficulties.

Reform measures, such as the reversal of the tax cuts of 2019, and the recent approval of the International Monetary Fund’s (IMF) Extended Fund Facility arrangement will support the country’s efforts to stabilize its economy.

Sri Lanka’s recovery from the crisis hinges on timely progress on debt relief and steadfast implementation of reforms.

Sri Lanka entered the crisis on a weak footing as pre-pandemic macroeconomic vulnerabilities, policy missteps, and shocks left the country with thin buffers on the eve of the pandemic.

In 2022, foreign currency scarcity led to shortages of essentials and triggered an acute energy crisis with prolonged power cuts and transport bottlenecks due to lack of fuel, which Sri Lanka needs to import. Inflation soared and eroded living standards, pushing many into poverty. The economic crisis has impacted the poor and vulnerable disproportionally.

“Sri Lanka has a long road to recovery, and it will be critical to ensure the poor and vulnerable are protected,” said Deputy Country Director for Sri Lanka Utsav Kumar. “It is imperative that the country address the root causes of internal and external imbalances, for which an unwavering commitment to reforms is essential.”

The needed reforms include enhancing domestic resource mobilization, improving the performance of state-owned enterprises to reduce their fiscal burden, strengthening public financial management, and encouraging private sector activities through harmonizing trade and investment policies. Improving governance and accountability mechanisms, such as strengthening anticorruption legislation, building strong institutions, and increasing transparency, will also be essential to address Sri Lanka’s economic vulnerability.

Presidential Election only possible later next year, former EC chairman opines

Amidst talks about a snap presidential election, former Election Commission’s Chairman Mahinda Deshapriya said yesterday that, in his opinion, such an election could be conducted only during the latter part of next year.

According to the Constitution, the President can, at any time after the expiration of four years from the commencement of his first term of office, declare a presidential election to seek a fresh mandate. This has fueled speculation that a presidential election will be conducted later this year after the completion of four years of the current presidential term.

However, Mr. Deshapriya said the current president had been elected by Parliament only to serve the unexpired term of the ongoing presidential term after the resignation of former President Gotabaya Rajapaksa.

Making his remarks to Daily Mirror, Mr. Deshapriya said, “After resignation of the elected president, the succeeding president has to serve the rest of the period. He cannot go for a snap election according to my view. Still, there is another argument put forward by some legal luminaries that even the succeeding president has such authority to declare a presidential election after four years. The Supreme Court has to be moved to get the correct interpretation.” the current president had been elected by Parliament only to serve the unexpired term of the ongoing presidential term after the resignation of former President Gotabaya Rajapaksa.

Majority of SLPP MPs want Ranil Wickremesinghe to be next President – Kanchana

A majority of the Sri Lanka Podujana Peramuna (SLPP) MPs are of the view that Ranil Wickremesinghe should be the next president, SLPP MP and Minister Kanchana Wijesekera said.

Speaking during a talk show, the Minister stated that the matter has been discussed among various party members.

Stating that it is unsure as to what election will be held next, Minister Wijesekera said that the SLPP will take a suitable decision at the time of an election.

Meanwhile, Cabinet Spokesman Minister Bandula Guanwardena told the media today that no proposal has been made by the SLPP so far about Ranil Wickremesinghe being nominated as the party’s next Presidential candidate.

President Ranil Wickremesinghe through his recent actions has won over the people as the most suitable person to carry out the revival of the country, he said.

He further stated that the priority of the public and the SLPP at present is to revive and develop the nation.

Minister Bandula Gunawardena added, “As we can see the country has currently moved to a stable position.”

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Counter Terrorism Bill will turn citizens into slaves: Cardinal

The proposed Counter Terrorism Bill will make citizens of the country into slaves as it can be used to harass people, Archbishop of Colombo Cardinal Malcolm Ranjith alleged today.

“This new legislation is more draconian than the Prevention of Terrorism Act (PTA) which was enacted in 1987. A person could be held only for three months under the old legislation while a person could be held for a longer period under the new propose law,” Cardinal Ranjith told a meida briefing.

“Any MP who votes for this Bill will be branded as one who does not love his nation and her people,” he added.

“There is an internationally accepted definition on terrorism when it comes to legislations such as this. However the definition of terrorism in this particular Bill is wider and some harmless acts have been defined as acts of terror in this Bill. It provides provisions for the government to control protests through drastic measures,” he also said.

Secret ballot papers used to elect Ranil as President destroyed

The secret ballot papers used by Parliament to elect Ranil Wickremesinghe as President last year, have been destroyed, Parliament was informed today.

Speaker Mahinda Yapa Abeywardana said that the ballot papers used in the secret ballot to elect a Member of Parliament to the office of President on the 20.07.2022, have been destroyed.

The Speaker announced that the ballots were destroyed by the Secretary-General of Parliament following the procedure in terms of the provisions of Section 18 of the said Act and with the approval of the Committee on Parliamentary Business held on 24.03.2023.

Wickremesinghe was elected President by Parliament last year securing 134 votes.

MP Dullas Alahapperuma secured 82 votes while MP Anura Kumara Dissanayake secured just 03 votes.

Of the 225 members of Parliament 223 had cast their votes of which four were declared invalid.

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Sajith loses grip on a dying SJB?

In a desperate attempt Sajith invites all SJB MPs to dinner last night

– SJB MPs complain of interference from Sajith’s wife, sister

– Harsha, Eran, Kabeer to join President

– Harsha likely to be sworn in as Minister of Policy Implementation

– Daily Mirror learns that insecurity and mayhem has broken out among the present cabinet ministers, fearing that they might lose their portfolios with the entry of opposition members into the government

In a desperate attempt to keep the main opposition – the Samagi Jana Balawegaya (SJB) alive, Opposition Leader Sajith Premadasa invited all SJB Parliamentarians to dinner at the Monarch Imperial in Battaramulla last evening in order to coax them into remaining in the party which is now on the verge of collapse.

Senior SJB members who attended the dinner told Daily Mirror that amidst the drinks and food which was hosted by Premadasa, there was also a plea made by him to the MPs to remain in the party and discussed its future.

Premadasa’s latest desperate attempt to keep the SJB alive comes at a time when three of its most senior MPs – Harsha De Silva, Kabeer Hashim and Eran Wickramaratne are in talks with President Ranil Wickremesinghe to join the government as the three have supported the President’s present economic policies, a senior political source close to both camps said.

Infact, it is reliably learned that Harsha is likely to be appointed as the Minister of Policy Implementation if he agrees, in a cabinet reshuffle which is expected soon with some functions of the Finance Ministry being brought under this new portfolio.

Eran Wickramaratne will also agree to support the President but has not requested any portfolio while it is learned that discussions are ongoing to offer a portfolio to Kabeer Hashim.

Senior SJB members alleged that the reason senior party members are now contemplating leaving the SJB is because of undue interference from Sajith’s wife Jalani Premadasa and his sister Dulanjali Premadasa which is why the party could not remain consistent in its decisions. Sources said that when decisions are made at the committee meetings, these decisions are later changed by the trio much to the annoyance of the SJB MPs. “Decisions made by the members do not remain. It changes as the party is run mostly by these three,” a senior SJB Parliamentarian alleged. Presently only MPs such as Lakshman Kiriella, Tissa Attanayake, Ranjith Madduma Bandara and Imtiaz Bakeer Marker remain steadfast with Premadasa.

Even SJB alliance parties such as the Tamil Progressive Alliance is in discussions with the President but have ruled out crossing over into the government. Media reports alleging that some SJB MPs were likely to cross over into the government today when Parliament convenes are false as discussions with the President are still ongoing and final confirmations are yet to be received.

Sources said that SJM MP Field Marshall Sarath Fonseka has also fallen out with Premadasa and is now fighting for the SJB Leadership while Patali Champika Ranawaka has already announced that he is forming a new political party next month and is likely to take some MPs with him.

While the SJB is struggling to remain intact, the Daily Mirror learns that insecurity and mayhem has also broken out among the present cabinet ministers, fearing that they might lose their portfolios with the entry of opposition members into the government.

Senior political sources said that many ministers are attempting to coax President Wickremesinghe into keeping them in their portfolios with some even going to the extent of indirectly threatening to leave the government and sit independently if the portfolios are taken away.

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Basic salaries of public servants contesting LG polls to be paid

The Cabinet of Ministers has given its approval to pay the basic salaries of government employees contesting the Local Government (LG) election, for the period from 09 March to 25 April.

At least 3,000 public servants, who have handed over nominations for the election, are currently on unpaid leave, the Government Information Department revealed.

However, as the LG election was repeatedly postponed, the government employees contesting the polls are struggling financially as their unpaid leave was extended.

Hence, it was decided that these government employees be paid their basic salaries for the aforementioned period.

The proposal had been made by Prime Minister Dinesh Gunawardena in his capacity as the Minister of Public Administration, Home Affairs, Provincial Councils & Local Government.

Addressing the parliamentary session this morning, State Minister Janaka Wakkumbura said all government employees would be paid their salaries for this month before 10 April.

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Monk’s armed bodyguard threatens Muslim & Tamil protestors – JDS

An officer from Sri Lanka’s Minister Security Division (MSD) threatened to shoot Tamil and Muslim protesters for opposing the installation of a Buddha statue in Ponmalaikuda, Pulmoaddai in Trincomalee.

Locals were outraged yesterday when a group of Sinhala Buddhist monks, officers from Sri Lanka’s Archeology Department and Sri Lanka’s security forces attempted to install a Buddha statue on land belonging to Tamils and Muslims. The protesters gathered in the area after one of the monk’s drivers broke a farmer’s fence to enter and seize the land.

The security officer pulled out his gun and threatened to shoot the protesters as they tried to stop the installation. Locals are expressed fears that the installation forms part of the ongoing Sinhalisation of Pulmoaddai, a Trincomalee town which borders Mullaitivu.

A 2019 report by People for Equality and Relief in Lanka (PEARL) highlights how Sinhalisation and militarisation is used to deliberately shift the demographics of Tamil and Muslim areas.

The North-East has been subject to Sinhalisation for decades but efforts have intensified in recent years with the aid of Sri Lanka’s military and archeology department.

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Cabinet approves proposal to draft law

In another step for the implementation of matters envisaged in the UNHRC resolution, the Cabinet today endorsed a joint memorandum submitted by Justice Minister Wijeyadasa Rajapakshe and Foreign Minister Ali Sabry seeking approval to draft the piece of legislation that provides for the establishment of Truth and Reconciliation Commission, Daily Mirror learns.

The Cabinet granted approval to direct the Legal Draftsman to work out this piece of legislation to be enacted by Parliament later. The bill, once enacted, will provide for the setting up of the Truth and Reconciliation Commission modeled on a similar mechanism adopted in South Africa after the end of Apartheid (Discrimination of people based on race).

The two ministers submitted this Cabinet paper after a tour of South Africa where they interacted with various stakeholders in that country on the pluses and minuses of such a system to bring about reconciliation among the communities here in the post \-war context.

A source familiar with the move said anyone affected by the conflict between 1983 and 2009 can appear before this commission once set up to present grievances and seek redress .

“The Commission will have 21 members. They will act in separate benches to hear various cases by the affected people and recommend redress in terms of reparations or legal assistance. Redress will vary according to cases to be heard,” the source said.

The UNHRC resolution calls for a truth seeking mechanism.

Govt. must uphold Constitution & Democracy, says Catholic Bishops’ Conference

The Catholic Bishops’ Conference urged the Government to uphold the Constitution and the Democracy of the country and not to proceed with any unwarranted measures to interfere with the independence of the Judiciary and preserve the Freedom of speech and expression of all its citizens.

The Catholic Bishops’ Conference of Sri Lanka stressed that it is the duty of all Governmental and other institutions to respect and observe the Independence of the Judiciary.

It added such interference is wholly unnecessary at this very crucial juncture of the Nation.

Full Statement: