Sri Lanka to resume flights from Jaffna to India next week

Sri Lanka will resume flights from the northern Jaffna peninsula to Chennai by next week, a senior minister has said, a move that will help the cash-strapped country’s tourism sector and provide a fillip to its beleaguered economy. The tourism sector is the main source of foreign exchange earnings for Sri Lanka.

However, the onset of the pandemic in 2020 severely crippled the tourism sector and was one of the major reasons for Sri Lanka’s economic travails.

The island nation’s earnings from international tourist arrivals for November touched USD 107.5 billion, with the cumulative tally in the first eleven months of the year notching up a whopping USD 1129.4 million, according to the Central Bank of Sri Lanka.
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“The flights to India from Palaly will resume soon, most probably by December 12,” Sri Lanka’s Aviation Minister Nimal Siripala de Silva told Parliament on Monday.

Flights will be operational between Jaffna and Chennai, the minister said.

“There are still some improvements to the runway that are needed,” he added.

The present runway can only accommodate 75-seater flights.

The airport was named the Jaffna international airport in October 2019.

The first international flight to land there was from Chennai.

The 2019 redevelopment of the airport was funded by both Sri Lanka and India.

Earlier, India’s Alliance, a wholly-owned subsidiary of Air India, operated three weekly flights from Chennai to Palaly.

However, after the government changed in Sri Lanka in November 2019, flight operations were halted.

Sri Lanka is currently facing its worst economic crisis since its independence from Britain in 1948.

There have been street protests in Sri Lanka against the government since early April due to its mishandling of the economic crisis.

In September, the IMF announced a USD 2.9 billion bailout package to help the country tide over its worst economic crisis.

A crippling shortage of foreign reserves has led to long queues for fuel, cooking gas, and other essentials while power cuts and soaring food prices have heaped misery on the people.

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Economic hardships force poor families to sell kidneys, racket busted

The Colombo Crimes Division (CCD) uncovered a massive human organ trafficking racket operating at a private hospital in Borella deceiving people from poor families during the ongoing economic crisis.

The CCD launched investigations into the racket after complaints were lodged by five persons including a woman to the Borella Police Station in connection with the non-payment after selling kidneys at a leading hospital in Borella. The kidneys had been sold by people belonging to poor families who were suffering to make ends especially during the ongoing economic crisis.

Accordingly, the police arrested a suspect involved in the racket after he surrendered himself at the Colombo Crime Division on Monday evening.

The arrested suspect is a 41-year-old resident of Kajimawatta, Colombo 15,

He was remanded till 13 December by the Colombo Magistrate’s Court. The Magistrate also ordered a travel ban to be imposed on six directors of the private hospital.

It has been revealed that this suspect has acted as a broker by coordinating between the person who sold the kidney and the receiving party.

In addition, apart from the brokerage fees, the suspect has also defrauded a part of the money given by the management of the hospital to those who sold the kidney.

Sources said that the victims who complained about the racket were presented before a Judicial Medical Officer (JMO) and it was revealed that one of those people’s kidneys had been removed.

They were promised a large amount of money for donating the kidneys, but they claimed that they have not received the money.

Meanwhile, it was reported that a kidney removed from a poor person has been transplanted to a foreigner.

Following the uncovering of the racket, the Health Ministry has appointed a seven-member committee to investigate the incident and has taken steps to temporarily suspend organ transplants at the concerned private hospital.

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Time right for elections, Sri Lanka Podujana Peramuna ready to face any poll: Basil

The time has come for an election in Sri Lanka and the ruling Sri Lanka Podujana Peramuna (SLPP) is ready to face any election, SLPP national organiser Basil Rajapaksa said, dismissing claims that the party has come to fear elections in the face of growing unpopularity and increased factionalisation.

Speaking to reporters at an event held in Colombo Monday December 05 morning to mark the fourth anniversary of the party’s media centre, Rajapaksa handwaved off assertions that the SLPP has splintered in the wake of the mass protests that ousted his brother and former President Gotabaya Rajapaksa.

“No, our party hasn’t fragmented, not the way this cake was cut,” he said, pointing to the cake that was cut to celebrate the media centre’s anniversary.

“There may be some [dissenters], but we are with the people,” said Rajapaksa.

Political analysts, however, note that the once mighty SLPP has indeed fractured to at least four or five distinct factions. One group, according to party sources, is with President Ranil Wickremesinghe who is keen to involve younger SLPP legislators in his economic reform agenda. The second is with former Media Minister Dullas Alahapperuma who launched an unsuccessful bid for the presidency and was roundly defeated by Wickremesinghe at the July 19 presidential vote in parliament. The third group now sits as independent MPs in parliament, while a fourth faction are with former President Mahinda Rajapaksa, the SLPP patriarch.

There is another group that remains loyal to Basil Rajapaksa, though all but one SLPP legislator voted for the 21st amendment to the constitution that prohibited dual citizens from entering parliament. Rajapaksa, a dual citizen with US passport, recently returned to the island after a private visit to his second home.

The former finance minister, who resigned after a wave of protests that demanded his departure along with that of his presidential brother, for their alleged role in Sri Lanka’s prevailing currency crisis, the worst in decades, was in a jovial mood at the anniversary event on Monday and was seen heartily indulging reporters who were throwing loaded question after loaded question at him.

Asked about future plans of the SLPP, Rajapaksa quipped that they couldn’t be revealed to the media at this stage.

“However, time has come for an election. It’s difficult to say how it will be at present, but as a party, we’re ready to face any election,” he said.

Rajapaksa’s apparent confidence in facing an election is in direct contrast to speculation that the SLPP is banking on President Wickremesinghe’s refusal to dissolve parliament anytime soon. Opposition lawmakers have accused Wickremesinghe of providing sanctuary and promising security to the deeply unpopular party by not calling early elections.

“We have won every election we faced so far. We are thankful to the Sri Lankan people for that. If we were unable to meet their expectations 100 percent, we regret that. We will correct any shortcomings and will work to fulfill the people’s aspirations,” said Rajapaksa.

Asked if he is going to remain in active politics despite the blanket ban on dual citizens, the former minister said, again with a chuckle: “Active politics… well, I’m not in governance anymore. Governance [for me] has been banned by the 21st amendment. So no, I’m not in governance, but I am in politics,” he said.

Pressed about possibly entering parliament again, he said: “How can I?”

Nor is Rajapaksa saddened by the development, he claimed. “No, I’m happy about it,” he said.

The former two-time finance minister, noted for his clash of views with Wickremesinghe when the latter was invited by then President Gotabaya Rajapaksa for a round of discussions on economic recovery, was cautiously complimentary when asked about the new president. It was the SLPP’s backing that guaranteed Wickremesinghe his lifelong ambition.

“I think that selection was the correct one. We have maintained from the start that all of us in government or opposition must be able to freely engage in politics,” he said, referring to assurances that the president has purportedly given SLPP parliamentarians that they will not face the kind of retaliatory mob violence that engulfed the nation on May 09 after alleged SLPP goons attacked peaceful anti-government protestors in Colombo.

A reporter asked if Rajapaksa believes the incumbent president is capable of taking the country on the right path to recovery?

“The first task was accomplished, by allowing us to engage in politics and to get on the streets. There are economic and other issues, and we have high hopes that they will be resolved,” he said.

Top USAID official arrives in Sri Lanka for talks

USAID Deputy Assistant Administrator of the Bureau for Asia, Änjali Kaur, arrived in Sri Lanka today for talks.

Kaur is to assess USAID Sri Lanka support to the crisis and meet Government officials, academics, and researchers to learn how USAID can further collaborate.

Just last week USAID Administrator Samantha Power met with Sri Lanka’s Foreign Minister Ali Sabry to further USAID’s understanding of the Government of Sri Lanka’s priorities and reforms to address the country’s economic crisis.

The two discussed how USAID can support a viable path forward for Sri Lanka’s recovery and growth.

Administrator Power, who visited Sri Lanka in September, reiterated the U.S. commitment to supporting Sri Lanka to help resolve its complex crisis, including addressing the urgent needs of Sri Lanka’s most vulnerable and marginalized communities.

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President Ranil Wickremesinghe felicitated on completing 50 years at Bar

The ethnic, religious issues and other genuine concerns of the people could be put behind the past to prevent a break up of unity and integrity of the state by the 75th Independence Anniversary of the country. As discussed by the Members of Parliament, if the Attorneys-at-law in the country would assist in this process, this task could be achieved, said President Ranil Wickremesinghe.

He made this observation addressing the ceremony organized to felicitate President Ranil Wickremesinghe on completing 50 years at Bar, held at the Lotus Hall, Shangri-La Hotel, Colombo, yesterday evening (03).

He said further that it is not an easy task but neither is it an impossible task. He added that this task cannot be achieved merely through the efforts of the politicians, but the support of the lawyers is vital in this endeavor.

He said apart from the economic challenge, there is a greater challenge, where the younger generation is questioning the entire system. He added that now the country has the option of letting the wounds of the past heal or letting it grow further. The Parliamentarians have taken a decision to see how best to resolve the ethnic differences and work towards reconciliation, issues of religious differences and all the other genuine concerns of the people, without breaking up the integrity and unity of the state.

He also said that if all the Attorneys-at-law join hands, all the major problems could be put behind us and all communities could come together as children of one mother as the country celebrates its 75th Anniversary of Independence next year. He added that it would also give all the opportunity to understand and appreciate each other’s views and prepare a constitution which would enshrine the freedoms the people enjoy but also allow for constitutional governance.

President Ranil Wickremesinghe and First Lady Professor Maithree Wickramasinghe were received at this occasion by President’s Counsel Ronald Perera.

Addressing the gathering President’s Counsel Romesh de Silva said President Ranil Wickremesinghe has never worked for self-promotion but has always worked to strengthen Parliament.

President’s Counsel Romesh de Silva President’s Counsel Thilak Marapana and President’s Counsel Faiz Mustafa also spoke at the event. President’s Counsel Ronald Perera delivered the welcome speech and Attorney-at-Law Kushan de Alvis made the vote of thanks.

Speaker Mahinda Yapa Abeywardena, First Lady Senior Professor Mithree Wickramasinghe, Prime Minister Dinesh Gunawardena, former President Mahinda Rajapaksa , Chief Justice Jayantha Jayasuriya PC, UNP Chairman and Parliamentarian Wajira Abeywardena, Ports and Civil Aviation Minister Nimal Siripala de Silva, MP Anura Priyadarshana Yapa, MP Chandima Weerakkody, MP Udaya Gammanpila, MP M.A Sumanthiran, MP Lakshman Kiriella, Justice, Prisons Affairs and Constitutional Reforms Minister Wijeyadasa Rajapakshe, Secretary to the President Saman Ekanayake, President’s Senior Adviser on National Security and Chief of Presidential Staff Sagala Ratnayake, Senior advisor to President on Climate Change Ruwan Wijewardene, Presidential Adviser Akila Viraj Kariyawasam, Presidents Adviser Dr R. H. S. Samarathunga, President’s Adviser K P Dayaratne, UNP General Secretary Palitha Range Bandara, Navin Dissanayake and the President’s Private Secretary Sandra Perera also were present at the occasion.

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LG polls date announcement before Jan. 9 – Polls chief

The Chairman of the Election Commission (EC) S.G.Punchihewa said yesterday that he has received the opinion of the Attorney General (AG) on conducting of the Local Government (LG) polls and as such he would issue the relevant gazette notification before January 9.

However, he told the Daily Mirror that he could not disclose the opinion conveyed to the EC by the AG to the media or any other party and added that there was no any legal impediment to hold LG polls and establish 340 LG bodies by March 19, 2023.

“I expect to discuss the AG’s opinion conveyed to me about three days ago with other members of the EC this week, take a final decision and make preliminary arrangements to issue the gazette notification shortly, announcing the dates of the LG polls,” Punchihewa said.

“I don’t know whether there will be any legal or constitutional impediments in days to come before the releasing of the gazette. But the EC is determined to issue the gazette notification to conduct the much delayed LG polls on time. The EC is constitutionally mandated to hold elections on time and not to postpone them,” Punchihewa stressed.

The Supreme Court in many instances has ruled that the government and the EC cannot delay conducting polls but can go for elections earlier than the legally stipulated day,” Punchihewa, emphasized.

One of the main prerequisites to hold the LG polls – the preparation of voters list of the 2022 electoral register under the LG wards system – would be completed in the next few days, he noted.

There is no any financial issue either to delay the election as the interim budget 2022 has allocated Rs. 10 billion for the EC.

Punchihewa gave an assurance to the joint opposition led by SJB leader Sajith Premadasa during a discussion held on November 15 that the Local Government polls would be held on time paving the way for the establishment of all 340 local government bodies by March 19th, 2023.

He also promised them that the relevant gazette notification would be issued between December 6th and January 9th, 2023.

Ali Sabry holds talks with US Under Secretary Uzra Zeya

Minister of Foreign Affairs Ali Sabry has called on United States Under Secretary for Civilian Security, Democracy, and Human Rights Uzra Zeya.

The two parties discussed Sri Lanka’s work to ensure political reforms in detail.

Zeya said they also discussed protecting the most vulnerable, advancing human rights, transitional justice, and reconciliation for all.

During Minister Sabry’s meeting with US Secretary of State Anthony Blinken, the US urged Sri Lanka to continue its efforts toward economic and political reforms focused on transparency, inclusion, and good governance.

Secretary Blinken congratulated Foreign Minister Sabry on the approaching 75th anniversary of Sri Lanka’s independence.

They held productive discussions at the Department of State on Friday 02, focused on further elevating Sri Lanka – U.S. relations in diverse spheres, including the 75th Anniversary of diplomatic relations which will be marked in 2023.

The two discussed the United States’ support for Sri Lanka during its economic crisis, including nearly $240 million in new U.S. government assistance, and the importance of comparable treatment for all creditors as critical to debt restructuring and securing an IMF program.

Secretary Blinken urged the Government of Sri Lanka to continue its ongoing efforts toward economic and political reforms focused on transparency, inclusion, and good governance.

The Secretary also welcomed Sri Lanka’s agreement to join the Global Methane Pledge. Both sides affirmed their common interest in tackling the climate crisis by accelerating the reduction of greenhouse gas emissions, transitioning to clean energy, and strengthening resilience to climate impacts.

The leaders also discussed the two countries’ shared commitment to advance democratic principles, including respect for human rights.

In addition to the meeting with Secretary Blinken, the Embassy of Sri Lanka to the U.S. facilitated further interactions during the visit which included meetings with key U.S. interlocutors including political leaders from both the House of Representatives and the Senate representing both major parties and high officials of the State Department.

Minister Ali Sabry met with a member of the Senate Committee on Foreign Relations, Senator Bill Hagerty, (Republican – Tennessee).

He had talks with members of Congress Rep. Bill Johnson (Republican – Ohio), Co-Chair of the Caucus on Ethnic and Religious Freedom in Sri Lanka and Rep. Raja Krishnamoorthi (Democrat – Illinois) who has shown an interest in Sri Lanka.

The Minister also had a meeting with Administrator, United States Agency for International Development (USAID) Samantha Power and expressed his appreciation of USAID for their generous support to Sri Lanka.

The Ambassador of Sri Lanka in United States Mahinda Samarasinghe along with diplomatic officers of the Embassy of Sri Lanka and officials of the Ministry of Foreign Affairs were also associated with the Foreign Minister at the meetings.

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Billions of dollars in foreign income stashed overseas

Sri Lanka is losing billions of dollars of much needed foreign exchange as a result of hoarding in earnings overseas by exporters without repatriating it, going against the directive of the Central Bank (CB).

According to a report compiled by an official think-tank tracing illicit financial flows, corruption and illicit trade, Sri Lanka has lost a staggering $53.5 billion during the past 12 years following this practice of parking money overseas.

The CB says that exporters are estimated to have hoarded nearly a staggering $3 billion in earnings overseas without repatriating last year.

The country has received US$ 1450 million of export earning in October 2022 and, of it $1199 million dollars were hard goods and of this only $326 million dollars was converted.

It was less than 23 per cent, CB Deputy Governor Yvette Fernando recently disclosed at a media conference adding that services sector earnings was $251 million.

As per the available official data, if all the export earnings are repatriated and converted, the average monthly export foreign exchange flow would have been $985 million.

The Revenue Monitoring Unit of the CB is continuously monitoring the export conversion and the dollar earnings using a tracking mechanism since July.

It has been revealed that the CB recently sent a questionnaire to exporters requesting information of their export performances, forex earnings and expenses etc since without data no assumptions can be made on this issue.

But only 57 per cent of them responded making it difficult to collect data and arrive at a conclusion.

Some of these traders either over-price or underprice the declared value of imports or exports, and transfer money overseas by hiding it within the regular payments for commerce in the international trading system, a high ranking official of
Sri Lanka Customs told the Business Times.

The CB issued regulations by gazette notification to oversee the export earning repatriation in February 2021. Until then export proceeds repatriation had not been monitored at all.

All licensed banks are required to submit reports relating to the repatriation of export proceeds to the Director of the Foreign Exchange Department of the Central Bank.

However the total merchandise export value of Sri Lanka is still calculated based on the statistical value submitted to the Customs via Export CusDecs, an official said.

He emphasised the need of implementing the shipment-wise export remittance monitoring system already developed by the ICT Division of Customs through the Customs ASYCUDA system.

R. Sampanthan: ‘We cannot go on like this’

Member of Parliament Rajavarothiam Sampanthan, who has kept together a diverse coalition of Tamil political parties under the umbrella of the Tamil National Alliance since 2001, has witnessed many phases of the struggle since Sri Lanka became an independent country in 1948. Now 89 and largely confined to his official residence in one of Colombo’s well-guarded areas, Sampanthan still pins his hope on India and the international community to encourage Sri Lanka to arrive at an amicable solution to the issue of the Tamils’ hopes and aspirations.

In a rare interview, Sampanthan, who had the distinction of being the Leader of the Opposition in the Sri Lankan Parliament from 2015 to 2018, outlines what the priorities of the government should be. Excerpts:

Q: What is your assessment of the aragalaya (struggle in Sinhalese)? I see that all those who were in power are back in Sri Lanka and thriving.

A:The aragalaya was successful in the sense that they were able to make the main wrongdoer realise that he could not continue in office [President Gotabaya Rajapaksa]. Unfortunately, Ranil [Wickremesinghe], for his own personal reasons, supported the government. And by virtue of this support he was able to become Prime Minister. Now, he is the President. He became President with the support of those whom he opposed [earlier].

The aragalaya was partly successful, and the main offender, President Gotabaya Rajapaksa, was compelled to resign. Now the question is do we have a government? Which is the government? Who is supporting whom? What is their stand on the economy? No one knows. It is all very confusing. I don’t know what policies they are pursuing. [Wickremesinghe is the lone member of his United National Party in Parliament. He survives with the support of MPs of the Sri Lanka Podujana Peramuna (SLPP), Rajapaksa’s party].

As of now, what is inevitable and what should happen is there should be general elections. The people should be asked to decide who should be given the mandate to rule.

Q: I think President Ranil Wickremesinghe is following the same policies as the SLPP.

A:The credibility of Mahinda Rajapaksa [former Prime Minister], Gotabaya Rajapaksa [former President], and Basil Rajapaksa [former Finance Minister] were seriously questioned. They were the ones ruling the country. Mahinda Rajapaksa had to go into hiding in Trincomallee [at a naval base] at the peak of the aragalaya. The time has come for the people to be given the opportunity to decide who should govern this country because this [the current state of SLPP controlling despite people wanting the party out of power] should not continue. It will only get worse.

I don’t think the economic debacle is being tackled in any sensible way. They [the government] had gone to the IMF for a bailout. So far, the IMF has said nothing. This is of great concern.

Q: So you think that the only solution is going back to the people?

A: I really don’t know how they continued because the whole country was against them. It was the peak of opposition to any government. I don’t know why it [ aragalaya] did not continue [after Wickremesinghe took charge as President]…. The people wanted this government to go. Hence, they should go back to the people for a mandate.

Q: A negotiated settlement to Tamil political aspirations is the dream that is fast turning into a mirage. We do not see any gains for the Tamils. In fact, they are losing out because of demographic and cultural changes in the north and the east. Tamil political parties have not been able to make much headway.

A: The resolution of the Tamil national question has been a big issue since [Sri Lanka’s] independence. The Tamil people supported independence. They were compelled to change their stand after the citizenship law and the resettling of Sinhalese in large numbers in the east and the north. This changed the demographic composition in those areas.

The Tamil people demanded autonomy and devolution of power in those areas. This was the basis of the [1957] Bandaranaike-Chelvanayagam pact and the [1987] Indo-Sri Lankan accord. Both contained provisions on identity of the Tamil people, the territory, and arrangements with regard to self-determination, or the right to determine their own destiny. Unfortunately, the Sri Lankan government breached the agreements.

As far as Sinhala politicians are concerned, whichever political party they belong to, they are primarily concerned about gaining the support of the Sinhala people on the basis of an anti-Tamil stand. As long as this continues, nothing can be done. Sri Lanka is party to the international covenant on civil and political rights, and to the covenant on economic, social and cultural rights. Both covenants give the people the right to self-determination.

We don’t want the country to be broken in any way; we stand for an undivided Sri Lanka. At the same time, we cannot go on like this. We have no alternative but to approach the international community, which is well aware of the issue. There should be some arrangement regarding the north and the east. It is the duty of the international community, including India, the US, and the UK, to take the lead and push for an arrangement in the north and the east.

The Sri Lankan government is not delivering on the political question. On one side, the Sinhala population in the north and the east is being increased by resettlement, and on the other side, the Tamils are fleeing because of the violence and the unstable political situation. If this goes on, the people will be unable to maintain their identity, self-respect, and even their dignity. The international community should not permit that. It will set a bad example to the world. If they want peace in the region, and peace in this country, this problem must be resolved.

(The Frontline)

Paris Club proposing a 10-year moratorium on Sri Lanka’s debt -Report

Paris Club creditor nations are reportedly proposing a 10-year moratorium on Sri Lankan debt.

A report published by India’s Hindustan Times said in addition to the debt moratorium, the Paris Club has proposed another 15 years of debt restructuring as a formula to resolve the current financial crisis in Sri Lanka.

According to the report, the Paris Club has hinted that global south should also take a hair cut similar to the global north notwithstanding the inequitable distribution of wealth.

The proposal will impact both India and China with Sri Lanka currently in the process of hold discussions to restructure its external debt.

Sri Lanka has already reached a staff-level agreement with the International Monetary Fund but will be required to obtain debt assurances from countries like China and India to secure the bailout package.

The Paris Club has already indicated that it is prepared to restructure Sri Lanka’s debt.