The Convener of the Inter-University Student’s Federation Wasantha Mudalige and four other student activists were arrested by Sri Lanka Police on Thursday (18) afternoon following a protest in Union Place, Colombo.
Police Spokesperson Attorney-at-Law SSP Nihal Thalduwa speaking to News 1st said that Mudalige was arrested after he took part in a protest march in Colombo 02.
Wasantha Mudalige was arrested at the Gas Works Junction in Colombo, and his motorcycle was also seized.
Source: News 1st
Sri Lanka’s economy is likely to contract more than 8 percent in 2022 and inflation may peak below 70 percent, central bank governor Nandalal Weerasinghe said.
“According to an earlier projection, we thought economic contraction would be 7.5 percent. And it looks like it will be a little more like that and it will probably pass 8 percent this year,” governor Weerasinghe told reporters after holding the policy rate at 15.50 percent but market rates around 25 to 30 percent.
Weerasinghe said at a discussion on Thursday August 15 that the sharper the economic contraction is, the faster the recovery will be.
“If there is a sharper negative growth this year means, we should be able to recover in next year, mainly in the second half,” he said.
Adding that uncertain factors such as changes in global prices of goods and services can affect the situation, Weerasinghe said if Sri Lanka manages to maintain normal economic conditions at current levels, sectors such as tourism will recover faster.
“Due to the decisions we took in the recent past, we see a favorable result now. Especially last time we saw a possibility of inflation rising more than 70 percent. But now we see it won’t go that high and with the electricity tariff being increased we have the hope it will come down going forward,” said Weerasinghe.
“On the other hand, our forex crisis has gotten better than the last time. We have been able to allocate forex for essential items likes petrol, diesel, and medicine due to the decisions we took. Import cost has reduced and exports have increased to a satisfactorylevel.
He said Sri Lanka is at a level of taking care of the basic needs of the country without going for short term loans.
Sri Lanka had to raise rates to stop private credit, reduce outflows and restore the credibility of a peg which was broken by two years of money printing.
As a result of high interest rates, credit growth should be decelerating. There is a purpose of having high interest rates. That is to decelerate private sector credit and reduce the growth in private sector credit, reduce monetary expansion, and then curtail the inflation, said Weersinghe.
There is a strong correction of the external sector with slowing private credit and also inflation.
Sri Lanka’s inflation grew 60.8 percent in the 12 months to July 2022, in the wake of failed float of the currency after two year of money printing, official data showed.
Governor Weerasinghe said inflation may peak around September below 70 percent before showing a downward trend.
“Inflation will be going up until September and we will see a downward trend after that. This is an assumption and no one can say how much it will be exactly. It will certainly increase gradually to around 70 percent. But we can’t give an exact number,” he said.
“Earlier it was projected to go to around 70 percent but I do not think it will reach that level now. It will peak around 65 and it will trend down,” he said.
Source: Economy Next
Former President Gotabaya Rajapaksa who fled the country last month amidst public protests calling for his resignation, is awaiting to obtain a US Green Card to return back to the United States and settle there with his wife and son, the Daily Mirror learns.
Highly placed sources said that Rajapaksa’s lawyers in the United States had already begun the procedure last month for his application to obtain the Green Card as he was eligible to apply due to his wife Ioma Rajapaksa being a US citizen.
The procedure will also now involve his lawyers in Colombo submitting the additional documents here in order to go ahead with the procedure.
The former President who is presently in a hotel in Thailand along with his wife will return back to Sri Lanka on Aug. 25, cancelling his initial plan to remain in Thailand at least till November.
Sources said that two days ago, Rajapaksa had consulted his lawyers and had decided to return back to Sri Lanka later this month as he was not allowed the freedom to move in Thailand as initially expected, due to security concerns.
Upon his arrival in Bangkok, Thai police had advised the ousted President to remain indoors for security reasons.
Foreign Media reports said that at the hotel, the location of which has not been disclosed, plainclothes police officers from the Special Branch Bureau had been deployed to ensure the safety of Rajapaksa. Officials had asked the former Sri Lankan president to remain within the hotel during his stay in the country.
Upon his arrival back to Sri Lanka this month, the cabinet will discuss to provide Rajapaksa a state house and security accorded to a former President.
Rajapaksa fled for Maldives last month and thereafter to Singapore. He entered Singapore on a medical visa and had it extended twice to remain there as much as possible. As his visa could not be extended further, Rajapaksa and his wife left for Thailand and was assured he could remain there till he finalizes his third destination.
However with his movements now restricted in Thailand, he will return back to the country.
Source: Daily Mirror Online
The Inter-University Students Federation (IUSF) will hold a protest against the current Government in Colombo today. IUSF Convener Wasantha Mudalige said the protest will be held against the ‘Deal Ranil-Rajapaksa Junta’ in a bid to oust it.
“The demand was for Gotabaya Rajapaksa to go. But Ranil Wickremesinghe who is currently protecting the Rajapaksa’s must also be ousted. He must be removed from the Presidency,” Mudalige said.
“Wickremesinghe should not feel pleased about the protestors packing up and leaving Galle Face. If we wish, the IUSF, the Galle Face activists along with the people of this country can occupy any building in protest even tomorrow,” he added.
Mudalige said the IUSF will take the lead in commencing discussions on forming a broad political front to face off against the Government. “If Wickremesinghe thinks he can stop the people’s struggle by arresting those involved, he is miserably mistaken. I challenge him to arrest more of us. Doing so will mark the beginning of this Government’s demise,” he said.
The protest march will commence at 1 p.m. from Lipton Circle. The IUSF is calling for the abolishment of the Executive Presidency, the introduction of a new Constitution, the release of all protestors as well as the provision of relief measures to the people.
The student activists are also demanding for the Government to commence academic activities in schools and universities that have been closed for the past three years.
Source: Daily FT
An office will be established to look into the issues and aspirations of the diaspora, President Ranil Wickremesinghe said.
“We must sort out the problems among the ethnic groups and special focus should be given to the diaspora as it is a strength and source of investment,” Wickremesinghe said addressing the 2022 awards ceremony of the Organisation of Professional Associations (OPA) of Sri Lanka.
Further he spoke of the need to establish an export oriented economy to overcome the economic crisis, noting that the country should no longer be heavily reliant on imports.
He added that the country should now prepare for a fourth industrial revolution while the economy must be completely restructured. The President noted that when the public sector collapses, the country should have sufficient funds to meet basic needs like education, health and housing.
“We need an attitude change, failing which the country will become another Lebanon. This is the stark choice before you. Whether we like it or not, we have no choices in the solutions,” he said.
Emphasising on electoral procedures, he noted that the preferential voting system has caused immense damage and that electoral reforms should be introduced through this Parliament.
He further said, the State of Emergency that is due to lapse by the end of the week will not be extended as there is a hint of a return of stability.
The Ceylon Electricity Board (CEB) General Manager has forwarded a draft agreement to the Ministry of Finance recommending that exclusive rights be granted to a Chinese company for supplying natural gas (regasified LNG) to power plants at Kerawalapitiya and Kelanitissa.
The CEB invited international bids in February 2021 for the development of a floating storage and regasification unit (FSRU) at Kerawalapitiya on build, own and operate (BOO) basis on a 10-year contract.
Under this tender, the FSRU stationed offshore at Kerawalapitiya will regasify the natural gas delivered by ship in liquid form (LNG) and then deliver it to power plants at Kerawalapitiya and Kelanitissa through gas delivery pipelines to be constructed under a separate tender floated by the Ceylon Petroleum Corporation.
The CEB has engaged an Indian consulting firm using funds provided by the Asian Development Bank (ADB) to prepare the request for proposal (RFP) documents of this tender, which includes the FSRU agreement and the implementation agreement (IA).
The FSRU agreement is to be signed between the CEB and the project company that would be set up by the selected bidder. The IA is an agreement signed between the project company and the Sri Lankan government, which sets out terms on which the government will provide incentives (such as tax concessions) and assistance (for obtaining statutory approvals such as environmental permits) to the prospective project company.
Under the IA, the GOSL will guarantee the payment due to the project company from the CEB under the FSRU agreement. The IA published with the RFP in February 2021 has not offered exclusivity to bidders, as it is unnecessary to offer such a guarantee since the FSRU agreement will ensure that the project company will operate the FSRU for 10 years.
The bids were closed on 25 June 2021, and the CEB has received only two bids despite some 18 companies purchasing the bidding documents.
The CEB Engineers’ Union (CEBEU) at the time claimed that potential investors had been discouraged by the government’s decision to entertain an unsolicited proposal by the US Company New Fortress Energy (NFE) to supply LNG to two private power plants in Kerawalapitiya including the FSRU and delivery pipeline.
However, according to a senior CEB engineer, this allegation was baseless because another international tender for a combined cycle power plant at Kerawalapitiya published around the same time attracted only a single bid. Industry experts blame international developers’ lack of interest in the dire financial situation in the country that existed at the time.
Out of the two bids received, the offer submitted by a leading US firm that owns and operates a large fleet of FSRUs was rejected by the technical evaluation committee (TEC) because the bidder had sought to conduct on its own expense a complete hydrological study of the offshore location assigned for the FSRU.
Some experts, contacted by The Island agreed that such studies were required for designing the offshore mooring system of the FSRU, which is one of the most critical items in the FSRU operation.
They were of the opinion that it was not usual for FSRU developers to rely on preliminary studies conducted by a third party because mooring system design is a highly specialised job that was not entrusted to unknown parties. However, the CEB has refused the bidder’s request, citing the urgency of implementing this project as the proposed study would take approximately two months. Accordingly, the bid has been rejected without further consideration.
However, despite CEB’s claim of urgency, the TEC is yet to complete the evaluation of the single bid and award the tender, 14 months after the bids were closed. The then CEBEU President Saumya Kumarawadu told The Island in September 2021 that the CEB’s tender was based on a comprehensive feasibility study carried out by experts and the tender was in its final stage of evaluation.
He expressed confidence that the CEB would soon select a suitable investor through a transparent and competitive bidding process, to procure the LNG infrastructure to supply LNG for all existing and future power plants in the country at the most competitive prices.
The TEC has accepted the only remaining offer received from a Chinese company, which is already engaged in road construction contracts in Sri Lanka, submitted in partnership with the Pakistani supplier of the FSRU. It is understood that this “qualifying offer” had quoted a price that is nearly twice that of the offer rejected by the TEC.
Based on the prices offered in the two bids received and the total LNG throughput guaranteed by the CEB in the RFP for the FSRU operation (443 million MMBtu for the 10-year period), the Chinese offer would cost around USD 560 million more than the offer of the US company over the 10-year contract term.
Because of the substantially high price quoted by the selected bidder, it has been decided to negotiate with the bidder with a view to reducing the price. Although the government tender guidelines allow negotiating the price with the selected bidder, they do not permit amendments to original commercial conditions or technical specifications during price negotiations in BOO/BOT projects. However, it is understood that the TEC has agreed to several material changes to the bid conditions including the bidder’s demand to change the designated location of the FSRU, a request adamantly rejected by the CEB during tendering.
The CEB has turned down repeated requests from potential bidders during the pre-bid meetings to change the location of the FSRU specified in the RFP. These parties have claimed that the location specified in the RFP did not have sufficient depth of water needed to float the FSRU.
Industry experts contacted by The Island believed that the CEB’s refusal to change the location may have resulted in the CEB ending up with only two bids. In any event, changing the assigned location of the FSRU is a material deviation from the original tender conditions, especially since the CEB has been clear from the beginning that this change could not be allowed.
The amended IA forwarded by the CEB General Manger is believed to contain several other unfavourable conditions not included in the original IA published with the RFP.
One such amendment is the GOSL’s undertaking to grant exclusive rights to the Chinese company for FSRU operation and delivery of gas to power plants for 10 years. Such a condition will effectively give this company full control of gas supply to nearly 2000 MW of generation capacity in the country, regardless of who supplies LNG.
Ironically, the strong opposition by the CEBEU to the proposal by the US company NFE was based on the allegation that NFE would be given a five-year monopoly for LNG supply in the country under that proposal.
It is also understood that the amended IA has added a new section that will effectively prevent the proposed restructuring of the CEB. Some question whether this is a clever ploy by the CEB engineers, who are opposed to the government’s restructuring of the CEB, to force the GOSL to abandon its reform process.
It is also understood that the amended IA has shifted the burden of obtaining numerous governmental and statutory approvals to the GOSL and CEB. Obtaining such approval is the Project Company’s obligation and the government generally agrees in the IA to provide reasonable assistance.
A senior CEB official contacted by The Island agreed that changing mandatory tender conditions after the award was made would be unlawful and likely to be challenged in court. He stated further that it would be most unlikely that the Ministry of Finance would agree to the changes proposed in the amended IA forwarded by the CEB, as some of these conditions may impinge on the rights of the government.
Source: The Island Online
The Government has decided not to go ahead with the recommendations mentioned in the final report of the ‘One Country, One Law” Presidential Task Force (PTF) headed by Bodu Bala Sena General Secretary Ven. Galagodaaththe Gnanasara Thera, as many important issues that need to be addressed urgently have arisen in the current situation, and taking into account the objections of several parties, The Morning learnt.
Speaking to The Morning, well-placed sources stated that in the current situation, a number of other important issues have arisen that require more attention than the concept of “One Country, One Law”, adding that the recommendations mentioned in the final report of the PTF would therefore not be implemented.
“In view of the crisis that has arisen in the country, the formation of an all-party Government is extremely important in obtaining the support of international institutions such as the International Monetary Fund (IMF). Against this backdrop, many parties that the Government and President Ranil Wickremesinghe expect to join the all-party Government have expressed their displeasure with the committees appointed by former President Gotabaya Rajapaksa, including the PTF in question,” the sources added.
Meanwhile, when queried by The Morning earlier as to whether the Government has reached a decision regarding the implementation of the final report of the PTF in question, Minister of Justice, Prisons Affairs, and Constitutional Reforms Dr. Wijeyadasa Rajapakshe PC said that the report has not yet reached his Ministry.
The Morning also contacted the President’s Media Division (PMD) to inquire into the matter when an official of the PMD said on Monday (15) that they had not been informed by the President, or the Presidential Secretariat, as to what to divulge to the media with regard to the final report of the PTF.
Furthermore, several political parties including the Sri Lanka Freedom Party (SLFP), the Thamil Makkal Thesiya Kuttani (TMTK), and the Sri Lanka Muslim Congress (SLMC) have expressed negative views regarding the said PTF on “One Country, One Law” chaired by Gnanasara Thera, and its final report, with the SLMC calling for the said report to be scrapped.
Speaking to The Morning, SLFP Senior Vice President Prof. Rohana Luxman Piyadasa said that while there is a need to implement the concept of “One Country, One Law” in the country, the first step taken by former President Rajapaksa to implement it, which was the appointment of Gnanasara Thera as the PTF Chairman, was critical.
“We all accept that there cannot be different legal systems for each race or ethnicity in a country. The country should be subject to one common law. Therefore, we do not rule out the concept of ‘One Country, One Law’. However, our opinion is that it is not possible to implement that concept based on the report of the PTF chaired by Gnanasara Thera. Given that he is a person who is disliked by many, and is accused of holding extremist views, many parties will not approve of the implementation of a report prepared under his chairmanship,” he said.
Therefore, Prof. Piyadasa said that the report prepared by the PTF in question should be reviewed again. After that, he said that it is best to appoint a committee or another appropriate structure made up of experts in the field of law to implement the concept of “One Country, One Law”, based on the progressive facts, if any, included in the report of the PTF.
Meanwhile, speaking to The Morning, TMTK MP C.V. Wigneswaran said that the appointment of the PTF on “One Country, One Law” itself was a wrong idea of the previous Government headed by former President Rajapaksa. Noting that the country has five legal systems – the English Law, the Roman Dutch Law, the Thesawalamai Law, the Muslim Law, and the Kandyan Law – he said that it is not appropriate to remove them just because of the Sinhala Buddhist majority ideology.
“There are five legal systems in Sri Lanka. How can one say that all these should be removed just because the Sinhala Buddhist majority would like to have it for themselves? This is not a Sinhala Buddhist country; it has two nations. The Tamil people have been in the North and East for more than 3,000 years. So, it is improper to talk in terms of ‘One Country, One Law’.”
When queried as to whether the TMTK would make a request to the Government to scrap the said PTF’s report, he said: “We have other important issues such as the release of Tamil political prisoners. We are more interested in getting them fulfilled. This has no meaning to us, as the North and East are anyway not part of this ‘one country’.”
Moreover, the SLMC has set several conditions for its support for the proposed national all-party Government. Among the SLMC’s demands are the immediate lifting of the emergency regulations, the discontinuation of the ongoing wave of arrests, and the scrapping of the reports commissioned by ex-President Rajapaksa, including that of the PTF Chaired by Gnanasara Thera.
“In keeping with your (reference to President Ranil Wickremesinghe) statement of Government Policy made to Parliament during the ceremonial sitting in order to achieve the objective of a liberal, tolerant, and secular nation, it is important that you make a clear commitment to jettison the reports commissioned by the former President under the theme ‘One Country, One Law’ headed by a radical cleric, known for his bigotry and prejudice. The minority communities have been disproportionately targeted by suggestions made for reform in their practices, belief systems, and personal laws, resulting in much consternation among the Muslims in particular,” the letter from the SLMC to President Wickremesinghe read.
The final report of the PTF on “One Country, One Law” was handed over to then-President Rajapaksa by Ven. Gnanasara Thera on 29 June 2022. The PMD stated at the time that the report is composed of eight chapters with 43 recommendations and two appendices, covering more than 1,200 witnesses from all parts of the island, including professionals, non-Governmental organisations, religious groups, various communities, university students, and legal professionals.
The United Nations Sustainable Development Cooperation Framework (UNSDCF) 2023-2027 was launched today by the Government of Sri Lanka and the United Nations in Sri Lanka.
The Cooperation Framework will guide the work of UN Agencies, Funds and Programs for the next five years (2023 – 2027).
The UNSDCF is the Framework that guides the work of all the UN Agencies in Sri Lanka and articulates the collective vision and contribution of the United Nations to support Sri Lanka to accelerate actions towards the achievement of the 2030 Agenda for Sustainable Development.
The Cooperation Framework gives primacy to accelerating actions to ensure a rapid recovery from the economic crisis along with the impact of COVID-19, prioritizing support to revitalize the economy and economic activities, social services, decent employment, social cohesion, and health and well-being for all people in Sri Lanka.
The UNSDCF was co-signed by the Secretary to the Treasury Mahinda Siriwardana on behalf of the Government of Sri Lanka and UN Resident Coordinator in Sri Lanka Hanaa Singer-Hamdy on behalf of the United Nations. Heads of UN Agencies, Funds and Programs in Sri Lanka also signed the Cooperation Framework. The signing ceremony hosted at the Ministry of Finance was also attended by Secretary to the Ministry of Foreign Affairs Ms. Aruni Wijewardane and the Regional Director for Asia and the Pacific of the UN Development Coordination Office, David McLachlan-Karr.
Speaking at the event, Secretary to the Treasury Mahinda Siriwardana noted that “the current global challenges demonstrate the continued importance for multilateral solutions that bring together the international community around shared priorities. This Cooperation Framework with the United Nations in Sri Lanka will be key as we pursue sustainable and inclusive development for the people of Sri Lanka.”
Elaborating further the UN Resident Coordinator in Sri Lanka Hanaa Singer-Hamdy said, this Cooperation Framework is mutually owned and anchored in national development priorities, the 2030 Agenda and the principles of the UN Charter.
The UNSDCF is structured around four interrelated and mutually reinforcing Strategic Priorities where the UN system will concentrate its expertise to support Sri Lanka to make transformational and accelerated progress. These Strategic Priorities cover Inclusive and Equitable Human Development and Well-being; Resilient and Green Recovery and Growth for Shared Prosperity and Environmental Sustainability; Social Cohesion and Inclusive Governance & Justice; and Gender Equality.
“Of course, our work will be underpinned by a crosscutting commitment to support rapid recovery from the economic crisis and the impact of COVID-19,” she said.
She further noted that programs by the UN System will be anchored in the principles of human rights and non-discrimination and ensuring that “no one is left behind”.
“The 2023 – 2027 Development Cooperation Framework reflects Sri Lanka’s national development priorities while working in partnership with the UN Country Team towards the realization of the 2030 Agenda for Sustainable Development. It is being concluded at a very significant moment in Sri Lanka when transformational changes are being operationalized in the economic and social fronts. The Framework is also an important shift for the UN system in enhanced national level coordination in the delivery of its development activities,” Secretary to the Ministry of Foreign Affairs Mrs. Aruni Wijewardane said.
The UNSDCF will be funded through core budget allocations of an estimated USD 60 Million, in addition to approx. USD 325 Million through other resources – spread across the five-year period of implementation.
The emergency regulations which is currently in force in the country, will not be revoked and will be extended after August 18, President Ranil Wickremesinghe announced today.
Speaking during the 35th annual conference of Organisation of Professional Associations (OPA), President Wickremesinghe said emergency will be allowed to lapse. “I will not extend emergency and will let it lapse on August 18,” the President said.
Mr. Wickremesinghe who promised a system change, said both the economy and the political system will be restricted. We intend to turn Parliament into a government and will have oversight committee. There will be a committee on state enterprise reforms, ways and means committee. Youth members from outside Parliament will be appointed to each Committee. We will also have a national council comprising of all parties,” he said.
Coming up with another move by the government, the President also announced that a diaspora office will be opened to get the diaspora community to involve in the development of the nation.
“We will have to change the current electoral system as well,” he said.
“This change will have to come from the present Parliament.”
Although this land belongs to Sri Lanka, the sky and the ocean unites us all, said the Leader of the National Freedom Front, Wimal Weerawansa at the welcome ceremony was organized at the Hambantota Port on Tuesday (16) morning, under the auspices of the Chinse Ambassador to Sri Lanka.
MP Weerawansa, speaking further, said that there is an area of ocean and the skies which belongs to Sri Lanka, and as a state, bears responsibility for that area.
“The Indian Ocean Region must remain as Region of Peace. There can be NO conflict. It cannot be home to enemy camps. Even if we are strong or weak economically, we need to maintain the stance,” he said.
The MP further stated that although some call the vessel a Spy-Ship, it should be called a communication vessel.
“China has never told us what the structure of our Government should be. China has never established NGOs in Sri Lanka, and funded them to destabilize the Government. Therefore, China is one of the few countries that extended assistance to Sri Lanka during these tough times. We hope China would help us more,” he said.
Speaking at the event, the Democratic Left Front Leader, Vasudeva Nanayakkara said that the presense of Yuan Wang 5 vessel itself is a symbol of the independence and sovereign power of Sri Lanka.
An unnecessary controversy was raised about the arrival of the vessel, the MP said, adding that it was a machination of the western powers headed by the U.S.
“However the rightious decision prevailed, as Sri Lanka is glad we are to be able to have Yuan Wang 5 here in this port which contributes to the significance of this port and to the future importance of this port. We hope the long lasting friendship cannot be torpedoed by any kind of machinations of imperialism. We trust we will be able to keep our bonds firm and unbreakable and ensure the peace in the Indian Ocean and the freedom in the Indian Ocean” MP Nanayakkara mentioned.
Rear Admiral (Retd) Dr. Sarath Weerasekara, also speaking at the welcome ceremony said that the resolution of the issue with regard to the vessel further strengthens the relations between China and Sri Lanka, and visits such as these also strengthens the friendship between the countries.
