Category: News

The Asian Development Bank (ADB) has granted Rs. 8 billion to Sri Lanka for the benefit of 1.2 million farming families, the President’s Media Division (PMD) says.

The grant comes in response to a request made by President Ranil Wickremesinghe.

Each family cultivating less than one hectare will receive Rs. 10,000 and Rs. 20,000 will be provided for each family cultivating above one hectare.

According to Agriculture Minister Mahinda Amaraweera, the money will be deposited into the bank accounts of the farmers from next week.

The approval for Sri Lanka’s $2.9 billion bailout from the International Monetary Fund (IMF) is likely to go beyond January 2023, State Minister of Finance Shehan Semasinghe said.

Accordingly, the approval of the IMF’s Board of Directors is likely to delay further, despite recent claims that approval would be given in January 2023.

Semasinghe assured, however, that maximum efforts are underway to receive the Board’s approval in the first quarter of 2023.

The bailout was initially expected to be approved by the end of this year, however progress has been slow in recent months.

The European Union will not continue with the Generalised Scheme of Preferences (GSP-plus) facility unless the Wickremesinghe-Rajapaksa government holds the Local Government elections soon, Prof G. L. Peiris, MP, has warned.

The Local Government bodies have to be constituted on or before March 20, 2023.

The former Foreign Minister has said that the continuation of the much-needed GSP-plus facility is dependent on Sri Lanka’s compliance with EU’s conditions.

Addressing the media, at Nawala, on Monday (19) on behalf of Nidahas Jathika Sabhawa, Prof. Peiris said that in terms of the International Covenant on Civil and Political Rights (ICCPR), Sri Lanka couldn’t fail to conduct the scheduled election.

The SLPP National MP and one of the two ex-Cabinet ministers, in the rebel group, said that the ICCPR was among the 27 international covenants in the EU’s agenda. Therefore, the incumbent administration couldn’t risk losing significant benefits received through GSP-plus that removed duties from products coming into the EU market from selected developing countries.

Prof. Peiris, who has held the Foreign Affairs portfolios twice, under the Rajapaksa brothers, flayed State Finance Minister, Shehan Semasinghe, for mixing up priorities. Prof. Peiris strongly criticized the Anuradhapura District lawmaker for pushing hard for the continuation of rapid economic recovery at the expense of the scheduled elections.

Lawmaker Peiris examined the State Minister’s move in line with the overall strategy meant to convince both the public and the international community that elections could be put off for the time being till progress was made. The EU and other members of the international community couldn’t turn a blind eye to any postponement of elections. “Don’t forget already all Provincial Councils are defunct. Now, they are planning to do the same to LG bodies,” Prof. Peiris said.

The last LG polls were held in Feb. 2018, during the Yahapalana administration. The Rajapaksa government postponed elections by one year. Elected for four years, the minister in charge of the subject could postpone the LG polls for a maximum period of one year, hence the stipulation new bodies would have to be set up by, or before, March 20, 2023.

The retired leading law academic, with half a dozen law text books under his belt, said that the national economy was in such a desperate situation, denial of GSP-plus could cause a catastrophe. The academic said that in spite of the Sept. 01 agreement, with the IMF, as regards USD 2.9 bn extended facility, Sri Lanka was yet to receive a dollar. “That is the reality. Regardless of almost daily promises given by government politicians, there is no certainty about it,” Prof. Peiris said, accusing the government of deceiving the public. “They are ensnared in their own lies. Having talked of the commencement of the programme in Feb, now they mention January and February next year,” Prof. Peiris said.

He commended the Governor of the Central Bank, Dr. Nandalal Weerasinghe, for taking a courageous stand. Dr. Weerasinghe has quite clearly explained the actual situation and such conduct should be appreciated, the former minister said, urging the government to review its strategies or face the consequences.

Contrary to various statements issued by various spokespersons on behalf of the government, Sri Lanka hadn’t been at least placed on the IMF’s agenda when its executive board met recently, in Washington, Prof Peiris said. However, Dr. Weerasinghe has quite rightly asserted that progress had been made, though an agreement was yet to be finalized.

Prof. Peiris said that the government couldn’t be unaware that the EU Parliament, in June last year, overwhelmingly voted to suspend the GSP-plus. Of 705 members, 628 voted in support of the resolution moved against Sri Lanka, 15 voted against, whereas 40 abstained. The resolution was meant to pressure Sri Lanka to repeal the Prevention of Terrorism Act (PTA).

Commenting on the All Party Conference (APC), summoned by President Wickremesinghe, on Dec. 13, at the Presidential Secretariat, Prof. Peiris said that the gathering was told of his intention to reach a consensus on the economic recovery plan as the government was not in a position to decide on these matters alone. Prof. Peiris asserted that as the final decision on the IMF facility could be further delayed, it would be the responsibility of the government to have a contingency plan to meet the daunting challenges ahead.

Amid heavy Indian push, Sri Lanka’s cabinet has approved a proposal by President Ranil Wickremesinghe to implement programs to improve living conditions of up-country plantation worker, mainly Indian origin Tamils.

British Colonial rulers brought Indian Tamils as cheap labours to work in the island nation’s plantation sector.

“The Upcountry Tamil people who migrated from India and live in central, Sabaragamuwa and Southern provinces have been contributing to the national economy in various ways for about 200 years,” the government said in its cabinet decision statement.

“Their contribution is about a third of the total income of the plantation sector. By February 2023, it will be 200 years since the arrival of the first generations of the Up-Country Tamil community to Sri Lanka.”

The move comes as India has engaged with Sri Lanka and discussed the well being of upcountry Tamils continuously.

Though Sri Lanka got independence from the British in 1948, it took nearly 50 years for the Colombo government to recognize the workers as Sri Lankan citizens though their living conditions have been largely poor.

An initial bill passed in 1948 called the Ceylon Citizenship Bill, the state only awarded citizenship if the father of the person was born in Sri Lanka.

Similar bills were passed afterwards and finally in 1988 the Grant of Citizenship to Stateless Persons Act was passed giving citizenship to all Indian origin Tamils in the island. The act was fully implemented in 2003.

State Finance Minister Ranjith Siyambalapitiya says that import restrictions on 10 different products related to tourism, security, and sports were lifted.

In a statement on Tuesday (20), the State Minister said these items include energy drinks, equipment required for CCTV systems, MGF wood required for the production of furniture, and sports equipment.

The State Minister said that this was the third occassion that import restructions were lifted this year.

On the 23rd of August 2022, the government restricted the import of 1,465 products.

The State Minister said that since then to the 23rd of November, the government managed to save USD 1.211 Billion.

On the 9th of September, the import restrictions on 708 items were lifted.

On the 23rd of November, the import restrictions on 77 items were lifted.

On the 19th of December, the import restrictions on 10 items were lifted.