Unilaterally terminating Light Rail project cost nearly Rs. 6 Billion to Sri Lanka, audit report reveals

Sri Lanka incurred nearly Rs. 6 billion loss due to the previous government’s decision to unilaterally cancel the Light Rail Transit (LRT) project, which was started under Japanese loan assistance with the aim of reducing traffic congestion in Colombo and providing a better transport service to the passengers, a report compiled by the National Audit Office revealed.

According to the Auditor General’s Department, it has been revealed during a special audit regarding the cancellation of the project that the amount of Rs. 5.978 billion spent on the project until then has been wasted.

In addition to the above expenses, the Japanese consulting company has demanded Rs. 5.16 billion, including the consultancy fees provided until the termination of the project and the loss caused to them by the cancellation of the project without any prior discussion.

If the amount is not paid and the company goes to an arbitration procedure in the future, Sri Lanka will have to pay a huge amount like the full consultancy fee and compensation etc., the Audit report says.

Also, at the beginning of this project, an amount of 60,080,000 Japanese yen (Rs. 1.04 billion) has been applied to the project as an advance payment fee and 50 percent of that amount was to be refunded after the project was fully completed. That payment has been wasted since the project was abruptly terminated, the report states.

The audit report states that while the funding for the project was provided by the Japan International Cooperation Agency (JICA) on a the request of the Government of Sri Lanka from the Government of Japan in 2016 under a concessionary interest basis with a grace period of twelve years to be paid in forty years, no acceptable reason has been given for canceling the project.

This project has been cancelled according to a cabinet memorandum submitted on September 24, 2020.

The Auditor General has recommended that in presenting its observations related to the Cabinet Memoranda, the Treasury should make maximum efforts to provide its independent professional observations beyond supporting the decisions expected by the Memoranda.

These facts are included in a special audit report issued by the Auditor General’s Department in November 2022 regarding the Japanese light rail project.

The objective of the project was to boost the transportation capacity and improve the safety and comfort of public transportation by introducing a light rail transit (LRT) system 17 km in length with 16 Stations from the Multi-Model Transport Hub in Colombo Fort to Malabe Depot.

The previous Yahapalana Government in March 2019 entered into agreement with the Japan International Cooperation Agency (JICA) for a Japanese soft-loan of $ 1.86 billion for the construction work of the LRT project.

On 21st September 2020, Dr. PB Jayasundara, the Secretary to the then President Gotabaya Rajapaksa has sent a letter to the Secretary to the Ministry of Transport NB Monty Ranatunga on the requesting him to stop the $ 2.2 billion Light Railway Track (LRT) project immediately and close its project office.

“It has been observed that Light Railway Track System is very costly and not the appropriate cost-effective transport solution for the urban Colombo transportation infrastructure,” the letter said adding that the President has directed the Secretary to request the Ministry Secretary to terminate the project with immediate effect.

PAFFREL threatens to take legal action if elections are delayed

Executive Director of People’s Action for Free & Fair Elections (PAFFREL) Rohana Hettiarachchi says the National Election Commission and the government must take necessary measures to conduct the Local Authorities Election before the end of February.

Speaking during a media briefing in Colombo, Hettiarachchi said if the election is not conducted before the end of February, they will take legal action.

He also said his organization met with the Prime Minister who is also the Minister of Provincial Councils and Local Government and requested him to take steps promptly to conduct the Local Authorities Election.

Rohana Hettiarachchi also stated that they will take legal action if any steps are taken to delay the conduct of the election.

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Sandya Eknaligoda named one of world’s most influential women by the BBC

Sri Lanka’s human rights activist Sandya Eknaligoda has been named one of the world’s most influential women of 2022 by the BBC.

The BBC has published the list of 100 most influential women in the world and has included women from several areas such as politics, science, sports, entertainment, and literature.

Sandya Eknaligoda is the wife of investigative journalist and cartoonist Prageeth Eknaligoda who is reported missing since 2010.

She was a strong critic of the then President Mahinda Rajapaksa-led administration.

She received several accolades for her work carried out to support mothers and wives of missing persons in Sri Lanka.

Sandya Eknaligoda is also a strong advocate of human rights and has made several statements at UN Human Rights Council sessions.

The list also includes global music phenomenon Billie Eilish, Ukraine’s First Lady Olena Zelenska, actress Selma Blair, the ‘tsarina of Russian pop’ Alla Pugacheva, Iranian climber Elnaz Rekabi, record-breaking triple jump athlete Yulimar Rojas, and Ghanaian author Nana Darkoa Sekyiamah.

The list also reflects the role of women at the heart of conflict around the world in 2022 – from the protesters bravely demanding change in Iran, to the female faces of conflict and resistance in Ukraine and Russia.

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TPA seeks Rs. 3,000 daily wage for estate workers to support Ranil

Tamil Progressive Alliance (TPA) Deputy Leader and Samagi Jana Balawegaya (SJB) Nuwara Eliya District Opposition MP Velusami Radhakrishnan yesterday (6) pointed out in Parliament that his party is ready to extend their support to President Ranil Wickremesinghe if he ensures a daily wage of Rs. 3,000 to estate workers and promises to resolve their housing and land-related issues.

“We are not against the President, but if he agrees to resolve the issues of the estate workers, the TPA is ready to extend its support to him,” he added.

While addressing Parliament during the Budget debate on the Ministry of Agriculture head of expenditure yesterday, he welcomed the move initiated by President Wickremesinghe to resolve the ethnic issue.

“He should not only be confined to the issues in the North and the East, but also resolve issues of plantation Tamils and Muslims as well,” he added.

He further said that tea, vegetables, and flower cultivations have been profoundly affected in the Nuwara Eliya District due to a shortage of fertilisers and pesticides.

“The flower export industry, the tea industry, and vegetable cultivations have been thoroughly affected in the Nuwara Eliya District due to a shortage of fertilisers and pesticides. I urge the Ministry to look into these issues. This issue has affected the people living in the estates,” he further added, while also noting that the Ministry should take the necessary steps to bring the affected industries back to normalcy.

“I urge that the cultivation of these crops be increased. The ban on chemical fertilisers has led to various issues. You neglected the agricultural sector by banning chemical fertilisers and such decisions have caused a setback in this country,” he added.

“The upcountry people are suffering, as they’ve not even been granted a salary increment of Rs. 1,000. They are facing serious issues. They do not have housing facilities or lands. Plantation companies have grabbed the agricultural lands of the upcountry people. These activities have badly affected the agriculture of the upcountry people. The laws relating to plantation companies are quite stern on the people.”

Meanwhile, on an earlier occasion, speaking to The Morning, TPA’s Leader and SJB MP Mano Ganesan expressed disappointment over the Budget 2023 speech by President Wickremesinghe, claiming that Wickremesinghe’s apparent ignorance has shattered the hopes of hill-country Tamils.

“This has shattered the hopes of our people. We are disappointed at the ignorance of Wickremesinghe on the issues of the plantation sector and the urban poor. The World Bank, the United Nations agencies, the International Committee of the Red Cross, and the Sri Lanka Red Cross have identified that food insecurity and poverty rates are high in plantations and also amidst the urban poor,” he added, claiming that President Wickremesinghe has failed to implement the expected affirmative action relief plans for these underprivileged segments.

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N-E women protest shortages of medical supplies

The North-East Women’s Union (NEWU) held a massive protest yesterday (6) in all eight districts in the Northern and Eastern provinces, urging the Government to address the shortages in essential medicines and medical equipment in State hospitals.

The Northern Province comprises the Jaffna, Kilinochchi, Mannar, Mullaitivu, and Vavuniya districts, while the Eastern Province comprises the Ampara, Batticaloa, and Trincomalee districts.

Speaking to The Morning, NEWU representative Viveki Nishanthan said that the shortage in medicinal drugs and equipment has badly affected everyone in this country following the economic crisis. Thus, the NEWU wanted to bring it to the notice of President Ranil Wickremesinghe by handing over a petition stating that it had also affected those in the North and the East. “Around 500 members participated in each of the eight districts to bring this issue to the notice of the President. We cannot afford to buy medicines from pharmacies as the economic crisis has hit us too. This issue is not only faced by us but by everyone in the country. But on behalf of the NEWU, we want to address the issue with the representation of all women in the North and the East,” she added.

She further said that there is a massive drug shortage in all the State hospitals in the North and the East, and that most people are now facing difficulties when they opt to buy medications from pharmacies because most medications are expensive and therefore, unaffordable.

“There is no medication for dog bites and snake bites. It is dangerous for us to live like this. When we live in villages, we have to face such issues. This is our fundamental right. So, we have now sent a petition to the President, Minister of Health Keheliya Rambukwella, the Human Rights Commission of Sri Lanka (HRCSL) and the World Health Organisation (WHO),” she said.

The petition highlighted that the people in the North and the East are facing difficulties while purchasing medications from private clinics or pharmacies, due to the drug shortage in State hospitals in the area.

“We appeal to the Government to address this shortage issue and to take necessary steps to provide adequate medications to the affected areas,” the petition read.

Female representatives from both provinces held slogans that read: “The Government of Sri Lanka should immediately facilitate the availability of essential medicines and medical devices to the people”, “Ensure women’s health rights”, “Our life, our rights”, and “Health rights are human rights”.

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Sri Lanka scraps COVID vaccination, negative test requirement on overseas arrivals

The mandatory requirement to produce a COVID-19 vaccination certificate upon entry into Sri Lanka has been lifted, with effect from today (07 Dec).

Further, all overseas arrivals are no longer required to produce a negative PCR or Rapid Antigen Test (RAT), done either prior to boarding or on-arrival, Director General of Health Services (DGHS) Dr. Asela Gunawardena stated.

In the event a foreign national tests positive for COVID-19 during their stay in Sri Lanka, they will be required to self-isolate for a period of seven days at their residence, a private hospital, or a hotel, and bear all related costs, he added.

Sri Lanka mandated the carrying of a negative COVID-19 test and proof of vaccination when it opened its borders to foreign arrivals amidst the COVID crisis in 2021.

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SJB’s Kavirathna raises ‘Navy’ youth abduction case in Parliament

Samagi Jana Balawegaya (SJB) Opposition MP Rohini Kumari Wijeratne Kavirathna brought the concerns of the parents of 11 youths who were forcibly disappeared to the notice of Parliament on Monday (5).

Addressing Minister of Justice, Prisons Affairs, and Constitutional Reforms President’s Counsel (PC) Dr. Wijeyadasa Rajapakshe, she said: “You are well aware that a case has been filed against certain parties in the alleged abduction of 11 youths during the period of 2008 and 2009. A total of 667 charges, 126 witnesses, and 64 documents were filed along with the indictments against the accused persons.

“You are aware that former Navy Commander Admiral of the Fleet Wasantha Karannagoda and 14 other personnel attached to the Navy were indicted. However, some of these officers have received honourary titles and retirement. So, I am asking what happened to those 11 youths. One of the mothers told me that she has been taking to the streets to seek justice. Dr. Rajapakshe, I believe you can understand the pain and suffering of these parents.”

In August 2018, the Criminal Investigations Department (CID) arrested Lieutenant Commander Chandana Prasad Hettiarachchi, alias “Navy Sampath”, as the main suspect with regard to the incident. The CID accused former Navy Commander and Chief of Defence Staff Admiral Ravindra Wijegunaratne of shielding one of the main suspects, while the court further ordered his arrest.

In February 2019, Karannagoda was named the 14th suspect in the case and was implicated for having known about the enforced disappearances by Naval personnel that he had command responsibility over and choosing to take no action. Subsequently, the Attorney General (AG) filed a case against the defendants under 667 separate indictments which include the abduction of 11 youths from Kotahena and the surrounding suburbs between 25 August 2008 and 21 March 2009, committing murder, demanding a ransom for their release, and aiding in the crimes.

The AG’s Department decided to temporarily suspend proceeding with the charges against Karannagoda as the Court of Appeal had, in connection with a writ petition filed by Karannagoda, issued an interim order halting the hearing of the charges levelled against him. The AG informed the Colombo Permanent High Court Trial-at-Bar of the same on 4 August 2021. The case was taken up before judges Champa Janaki Rajaratne, Amal Ranaraja, and Nawaratne Marasinghe on 4 August 2021. Karannagoda was named a defendant in the Colombo Permanent High Court Trial-at-Bar case filed against a group of Naval intelligence officers pertaining to the alleged abduction and enforced disappearance of 11 youths in Colombo in 2008 and 2009. However, the case is still being heard and a decision with regard to the incident is yet to be determined.

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World Bank extends lifeline for crisis-hit Sri Lanka

The World Bank on Monday approved Sri Lanka’s request to access concessional financing from the International Development Association (IDA).

This type of financing, which is offered at low interest rates, will enable the country to implement its Government-led reform program to stabilise the economy and protect the livelihood of millions of people facing poverty and hunger.

The request is the result of Sri Lanka’s sustained deterioration in economic and social conditions, which have reduced income levels, reversed poverty gains, and affected its access to financial markets. This approval means Sri Lanka now becomes an IDA country.

“We are committed to helping the Sri Lankan people at this time of dire need so their country turns around and restores its economic well-being,” said World Bank Vice President for Development Finance Akihiko Nishio. “The World Bank is ready to support Sri Lanka as it implements reforms that will reduce poverty and rebuild the economy, creating the foundation for sustainable growth.”

Through IDA support, the World Bank will provide concessional financing, technical assistance, and policy advice as Sri Lanka implements reforms to drive recovery and enhance the country’s economic prospects, especially measures directed towards the poor.

Access to IDA’s concessional financing would also alleviate existing debt service pressures given the more favourable terms IDA financing carries. As an IDA country, Sri Lanka will also be subject to IDA operational policies.

“At this time of critical need in Sri Lanka, we appreciate the World Bank’s rapid response and its vision as the first development partner to respond in record time through repurposing existing operations to help preserve Sri Lankan institutions for basic service delivery,” said Foreign Affairs Minister Ali Sabry.

“The reverse graduation to IDA will enable us to access resources to help sustain institutions to become more resilient and responsive to the needs of the people of Sri Lanka.”

Since 2017, when it first graduated from IDA, Sri Lanka has been creditworthy for lending from the World Bank’s International Bank for Reconstruction and Development (IBRD). To date, in response to the country crisis, the Bank has repurposed $ 325 million from IBRD and a further $ 71 million from other regular Bank operations towards crisis response for basic service needs.

This has also helped leverage support from other multilateral development institutions, bilateral donors, and UN agencies around a common crisis response mechanism. Sri Lanka’s reverse-graduation brings the total number of IDA countries to 75.

The World Bank’s International Development Association (IDA) is one of the largest sources of funding for fighting extreme poverty in the world’s poorest and most vulnerable countries. IDA provides grants and zero or low-interest loans to countries for projects and programs that boost economic growth, build resilience, and improve the lives of poor people around the world. Since 1960, IDA has provided about $ 496 billion for investments in 114 countries.

Cabinet yet to discuss offering East Container Terminal to Japan: Bandula

While acknowledging the need to divest certain State-owned assets to re-build the country’s foreign reserves, Cabinet Spokesperson and Minister of Transport and Highways and Minister of Mass Media Bandula Gunawardana said the Cabinet is yet to discuss on offering Colombo Port’s East Container Terminal (ECT) to Japan.

The President Ranil Wickremesinghe on Monday announced that ECT had been offered to Japan. “We have given the first offer to Japan. If Japan does not take it will be open to others, Wickremesinghe said.

However, Gunawardana noted that no decision or discussion has so far taken place at the Cabinet on the matter.

During Yahapalanaya regime, the government entered into a US$ 500 million tripartite agreement with India and Japan to develop and operate the ECT. However, the agreement was terminated by former Prime Minister Mahinda Rajapaksa in 2021 amid mounting opposition by trade unions affiliated with the Sri Lanka Port Authority (SLPA). Later, the West Container Terminal (WCT) was handed to India’s Adani Group-led consortium.

Meanwhile, Gunawardana stressed that the country needs to divest some of the State assets to attract foreign investments. Otherwise, he cautioned the country could yet again not be able to finance essential imports such as fuel, LPG and other goods.

“If we don’t dispose state assets, we would remain out of the international payment system and we would not be able to sustain essential imports. Most foreign suppliers don’t accept letter of credit facilities opened with our banks. That’s the reality. We need to rebuild our foreign exchange reserves at least to US$ 3 billion in order regain access to the international payment system,” he went on to say.

At the end of October, the country’s foreign exchange reserves slipped to US$ 1.70 billion from US$ 1.77 billion the previous month. However, the usable foreign reveres were around just US$ 50 million.

Lankan envoy and Indian Finance Minister discuss multi-faceted economic integration

The High Commissioner of Sri Lanka to India, Milinda Moragoda, met the Finance and Corporate Affairs Minister of India Smt. Nirmala Sitharaman on Tuesday at the latter’s office in North Block, New Delhi.

This was the latest of a series of meetings High Commissioner Moragoda has had with Minister Sitharaman since November last year on Indian economic cooperation and assistance to Sri Lanka in the context of the present crisis.

At the outset, High Commissioner Moragoda briefed Minister Sitharaman on Sri Lanka’s ongoing discussions with the International Monetary Fund and the present status of the country’s debt restructuring process. He also briefed her on the drastic impact the present economic contraction is having on the poor and vulnerable segments of the population of Sri Lanka.

The High Commissioner once again thanked Minister Sitharaman for the unprecedented emergency assistance that India has extended to Sri Lanka and her personal interventions with bilateral and multilateral partners throughout this challenging and difficult period.

High Commissioner Moragoda and Minister Sitharaman also reviewed the status of bilateral economic cooperation, and the High Commissioner emphasized that India could play a critical role in Sri Lanka’s economic revival through multi-faceted economic integration between the two countries by enhancing investments, tourism and trade.

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