Sri Lanka Prime Minister briefs FAO, UNDP on looming food shortage

Sri Lankan Prime Minister Ranil Wickremesinghe on Friday (03) briefed the representatives of Food and Agriculture Organisation (FAO) and United Nations Development Program (UNDP) over possible food shortage and the plans to overcome the production gap, the prime minister’s office said.

The meetings come as the island nation’s agricultural experts have warned of a possible shortage of rice and other essential foods possibly in September because of lower production due to the impacts of chemical fertilizer ban last year and inability to import amid dollar shortage.

Wickremesinghe has already warned of an acute food shortage by August and said the island nation would require $600 million to import fertilizer amid Sri Lanka’s near zero foreign currency reserves. Crop scientists have warned that Sri Lanka could produce enough rice only for seven months of this year due to the fertilizer ban. Before the fertilizer ban, Sri Lanka had self sufficiency in rice production.

Wickremesinghe met Vimlendra Sharan, the Country Representative of the FAO and Malin Herwig, the Deputy Country Representative of UNDP on Friday.

“The Prime Minister explained that in view of the threat of a food shortage, a food security program was being compiled by the agriculture department officials. This program is due to be unveiled next month, with the UNDP expressing their support for the initiative,” Wickremesinghe’s office said in a statement.

“He (Wickremesinghe) stated that the biggest issue currently facing the agriculture sector is the fertiliser and fuel shortage. The Prime Minister also elaborated on the urban agriculture initiative that he had established to try and overcome a potential food shortage.”

Sri Lanka is unable to import fertilizer although President Gotabaya Rajapaksa has cancelled his detrimental fertilizer ban policy because it does not have dollars and sharp increase in fertilizer prices globally.

Sri Lanka produces no nitrogen fertilizer. Rajapaksa banned chemical fertilizer and requested farmers to go for only organic fertilizer. Paddy harvest has seen a decline of around 40 percent in the last two cultivation seasons, crop scientists have said.

The prime minister’s office said the UNDP explained that they were compiling an innovative farming assistance program which would help the farming community overcome the fertiliser shortage.

“The FAO also explained that donors had stepped forward to assist the country in the urban agriculture program, and was hopeful that a successful implementation would see more financial support provided,” it said in the statement.

“The FAO also stated they were drafting a food crisis response plan that can be enacted in Sri Lanka.”

“The Prime Minister explained that within 5-6 months the current agriculture shortages could be salvaged if swift action was taken to address the shortages faced by the farmers.”

US says BBS used social media to promote Sinhalese Buddhist supremacy

The United States, in a new report, says the Bodu Bala Sena (BBS), continued to use social media to promote what it called the supremacy of the ethnic Sinhalese Buddhist majority and vilify religious and ethnic minorities.

According to civil society groups, highly visible social media campaigns by Buddhist nationalist groups such as the BBS targeted and incited violence against religious minorities, in particular the Muslim community.

The findings were mentioned in the 2021 Report on International Religious Freedom which describes the status of religious freedom in every country.

During the year 2021, the National Christian Evangelical Alliance of Sri Lanka (NCEASL) documented 77 incidents of attacks on churches, intimidation of and violence against pastors and their congregations, and obstruction of worship services, compared with 50 incidents in 2020. In 11 instances, NCEASL said crowds assaulted or threatened pastors, their family members, and congregants, the US report said.

According to the report, Muslim NGOs and organizations reported an increase in police harassment and surveillance of their activities since the 2019 Easter Sunday bombings. They said harassment included regular phone calls and visits by Government security forces to ask about activities of the organizations.

An NGO leader said violence against religious minorities varied depending on the religious minority group, stating, “when violence happens against the Christian community, it’s done at an individual level, while violence against Muslims happens at a communal level.”

According to Christian, Hindu, and Muslim civil society groups, while the overall number of incidents of violence against religious communities during the year decreased compared with 2020, incidents of monitoring, surveillance, harassment, and intimidation increased and often occurred in concert with harassment by local Buddhist monks and Buddhist nationalist organizations.

Civil society groups said that while the level of fear among religious minority communities was higher given this increase, they nonetheless continued to report cases of intimidation to authorities and NGOs.

Nine army intelligence officers accused in Pradeep Eknaligoda abduction case remanded

Nine army intelligence officers accused in the case filed over the abduction and disappearance of journalist Pradeep Ekneligoda have been remanded until the 13th of June.

The case was called before the Colombo Trial-at-Bar today (June 03).

In November 2019, the nine accused had been served indictment over the abduction of Eknaligoda and released on previous bail.

Eknaligoda, who was a cartoonist, political analyst and journalist, was reported missing on January 24, 2010, two days before the presidential election.

During today’s proceedings, evidence statements were recorded from the witnesses in the case.

Further hearing of the case has been fixed for the 13th of June.

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Rs. 1.8 billion from COVID fund to be used to import essential drugs

President Gotabaya Rajapaksa has instructed given directives to release Rs. 1.8 billion from the COVID-19 Healthcare and Social Security Fund to import essential medicines, the President’s Media Division says.

These funds were received from donors to control the coronavirus disease.

The President said that the money could be used for health needs as the COVID-19 epidemic is now under control.

A total of 234 types of medicines required for hospitals are manufactured locally and the drug prices continue to increase in the world market sharply. In view of this situation, the President pointed out the possibility of rapidly increasing the local pharmaceutical manufacturing and obtaining the necessary raw materials in this regard under the Indian credit line.

The President made these remarks at a discussion held at the President’s House in Colombo, today (June 03) regarding matters of urgent concern in the field of health sector.

There are 12 investors in the pharmaceutical sector in Oyamaduwa and Millewa area in Horana. The production in those factories is expected to begin in the next few months and has the potential to produce more than 200 types of drugs in these regions, the officials said.

“The Ministry of Samurdhi and Education is planning to provide a nutritious meal to primary school children and pregnant mothers”, the President further said.

The importation of medicines and medical equipment is being funded from several sources. It is planned to allocate the required funds from the proposed budget as well. The Officials pointed out that based on the current progress in the health sector it would return to normal within the next three months.

Minister of Health Keheliya Rambukwella, President’s Chief of Staff Anura Dissanayake, Finance Secretary Mahinda Siriwardena, Secretary to the Ministry of Health S.J.S. Chandragupta, Additional Secretary Dr. Saman Ratnayake and Heads of Line Institutions of the Ministry were also present at the discussion.

Money runs out to feed animals in zoos

The officials of the Department of Zoology have informed the Minister of Agriculture, Wildlife and Wildlife Conservation Mahinda Amaraweera that there is no money to provide daily food to the animals in the Dehiwala Zoo as well as other zoos in the country.

Officials at the zoo say there is a severe shortage of food due to declining foreign tourist arrivals and local tourist arrivals due to fuel shortages and rising food prices.

Officials say that the money allocated by the government in the budget has also finished.

The suppliers who supplied food to the zoos are currently owed Rs. 59 million and need at least Rs.120 million more for the rest of this year, officials said.

The Minister had informed the officials that steps will be taken in consultation with the Treasury to provide the relevant financial allocations.

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‘Gota Go Gama’ demonstrators deny ‘false claims’ of meeting President

Representatives of the ‘Gota Go Gama’ demonstration at Galle Face in Colombo have refuted claims that a discussion had taken place with President Gotabaya Rajapaksa.

Addressing the media, they said two monks claiming to be representatives of the ‘Aragalaya’ at Galle Face had met the President yesterday.

The representatives clarified that no one from ‘Gate zero’ the ‘Aragalaya’ or ‘Gota Go Gama’ at Galle Face have met with the President.

Stating that the key demand of the ‘Aragalaya’ is for President Gotabaya Rajapaksa to resign, activist Randimal Gamage said attempts are underway to disrupt the ongoing struggle at Galle Face.

The clarification comes after Sri Lanka President office claimed that a group identifying as the Confederation of Professionals for a National Policy, a group of professionals and youth involved in the ‘Aragalaya’ (struggle), had met the President yesterday.

The President’s Media Division (PMD) said that the group had presented a concise set of proposals outlining actions that should be taken to resolve the current political and economic situation to President Gotabaya Rajapaksa.

Issuing a statement, the PMD said the proposal was handed over to the President at the President’s House, Colombo, yesterday (01).

The PMD said discussions focused on short, medium and long-term measures that should be taken to address the current political, social and economic crisis and the adoption of a new ‘people-friendly’ Constitution.

Subsequently studying the proposal, it was agreed to hold the next discussion within the next few days.

President Rajapaksa said that several groups representing experts in various fields were ready to build the country and that he is ready to provide the necessary powers and resources to implement the positive plans of those groups.

The professionals pointed out that a development programme with specific targets should be provided to all Ministries annually and steps should be taken to review the progress towards those targets on a quarterly basis.

The proposal calls for the removal of Ministers and Officials who fail to meet targets by the end of the year.

The discussion which was held under the patronage of Ven. Prof. Pathegama Gnanissara Thera and Shastrapathi Ven. Vitiyala Kavidhaja Thera was attended by Dr. Asoka Jayasena and Mr. Nelum Weragoda representing the Confederation of Professionals for a National Policy and a group of professionals and youth involved in ‘Aragalaya’.

Justice Minister Dr. Wijayadasa Rajapakshe and Chief of Staff to the President Anura Dissanayake were also present during the discussion.

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Parliament debate on Supplementary Estimates set for June 8

The debate on the Supplementary Estimate of Rs. 695 billion which is to be presented on the 7th of June by Prime Minister Ranil Wickremesinghe will be taken up for debate on the 8th until 5.30 pm, the Secretary General of Parliament Dhammika Dasanayake said.

The Secretary General also said that the Resolutions under Section 8 of the Appropriation Act No. 7 of 2020 are to be passed following the debate on the same day.

The decisions were taken at the Committee on Parliamentary Business chaired by Speaker of Parliament Mahinda Yapa Abeywardana, this morning (02).

Furthermore, Regulations as mentioned in the Gazette Notification No. 2274/42 dated 09.04.2022 imposed under the Import and Export (Control) Act and the Regulation under the Local Treasury Bills Ordinance for the purpose of increasing the Credit limit by Rs. One Trillion are to be passed without a debate on the 7th.

Prime Minister Ranil Wickremesinghe will then make a special statement on the current situation in the country and the adjournment debate on the said statement will be held until 5.30 pm.

The Sri Lanka Electricity (Amendment) Bill (Second Reading) and Regulations under the Petroleum Resources Act are scheduled to be taken up for debate until 4.30 pm and passed in Parliament. Thereafter, time has been allotted for Questions at the Adjournment Time from 4.30 pm to 4.50 pm followed by the Motion at the Adjournment Time by the Government from 4.50 pm to 5.30 pm.

Furthermore, it has been decided set aside time from 10.00 am to 5.30 pm on June 10th for the Vote of Condolences given the murder of Member of Parliament Amarakeerthi Athukorala who was killed during the recent clashes.

Parliament meets daily at 10.00 am and except for June 10th, time has been allotted from 10.00 am to 11.00 am every day to raise Questions for Oral Answers.

Amendments brought in by the Leader of the House Dinesh Gunawardena to increase the strength of the Committees on Public Enterprises (COPE), the Committee on Public Accounts (COPA) and the Committee on Public Petitions in Parliament pertaining to its review mechanism was considered.

Accordingly, it has been decided to convene a special meeting of the Committee on Parliamentary Business on the 7th at 2.30 pm to discuss this matter further.

The Committee also drew attention to the letter sent by the Secretary to the Ministry of Finance proposing the importance of maintaining the business of Parliament with a minimum of paper use in relation to the creation of an eco-friendly e-government service while minimizing costs.

The Committee also focused on the possibility of submitting soft copies of all reports and documents tabled in Parliament to a special web portal on the Parliamentary website for the use of Members of Parliament.

Accordingly, the Speaker has given the necessary instructions by the unanimous decision of the Members of the Committee to take the necessary action expeditiously in the future.

Furthermore, the Committee also decided to set aside Monday, July 04th as a special parliamentary day to take up 50 Questions for Oral Answers which could not be taken up in Parliament due to various reasons.

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Sri Lanka seeking USD 3 Bn under IMF Extended Fund Facility: report

Sri Lanka is in talks with the International Monetary Fund (IMF) to borrow at least USD 3 billion via the lender’s extended fund facility (EFF), sources familiar with the matter told Reuters.

The island state’s government expects another round of technical talks with the IMF in early June and hopes to reach to a staff-level agreement as soon as the end of this month, two of the sources said, speaking on condition of anonymity.

A spokesperson for the IMF didn’t immediately reply to a request for comment. Spokespeople for Sri Lanka’s finance ministry and central bank didn’t respond to a request for comment.

Sri Lanka has requested a rescue plan to overcome its worst economic crisis since independence in 1948. It defaulted on some overseas debt earlier this year and is struggling to pay for imports of basics such as fuel and medicine.

An EFF programme, which would be the 17th IMF plan for the nation, requires countries to make structural economic reforms “to correct deep-rooted weaknesses,” according to the IMF’s website. These programmes normally last three years with a grace period of 4-1/2 years to start paying back the loan, once the plan is approved.

A USD 3 billion deal would represent almost four times the country’s quota with the IMF.

The IMF said last week it was in talks with Sri Lanka for a “comprehensive” reform package, but didn’t specify what type of programme was being negotiated.

Prime Minister Ranil Wickremesinghe, who took office in May after mass protests forced the resignation of his predecessor, Mahinda Rajapaksa, plans to present an interim budget within weeks.

The government announced on Tuesday a taxation overhaul to boost revenue, hiking corporate tax and raising the value added tax (VAT) rate to 12% from 8% with immediate effect.

Sri Lanka recently appointed financial and legal advisers to kick off talks with bondholders and bilateral lenders, such as China and Japan.

Source: Reuters

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Sri Lanka can’t use $1.5 billion China swap due to IMF concerns: Report

Bankrupt Sri Lanka can’t tap a $1.5 billion credit line from China as the Chinese are concerned the International Monetary Fund may force delays in repayment, BNN Bloomberg reports.

“There is a condition in relation to the months of import cover that we need to have in order to be able to draw on that money,” Indrajit Coomaraswamy, who is advising the Sri Lankan government, said at an event organized by the central bank Thursday. It’s difficult for the Chinese to waive off the condition “because this is a three-year swap, it might be termed a loan and there may be pressure from IMF and others to include it in the stock of debt that we reschedule and therefore clearly that would be a disadvantage to the Chinese,” he said.

India — creditor and neighbor to Sri Lanka and China’s rival — wants the IMF to treat China on par with other creditors. Meanwhile, India has used a recent summit of the Quad to ask Japan to also aid Sri Lanka. The Quad is an informal grouping comprising India, Japan, US, and Australia, whose unstated aim is to contain China’s power.

China Must Be Treated as Equal Sri Lanka Creditor, India Says

“There is some indication that the Japanese government may also now be more forthcoming in providing bridge financing,” Coomaraswamy said. Prime Minister Ranil Wickremesinghe previously told Bloomberg that the percentage of loans from Japan and China are the same, but the Chinese interest rates are higher.

The bridge loans are essential for the island nation to pay for food and fuel, with severe shortages stoking inflation to 40%. Sri Lanka has defaulted on foreign payments and is seeking both rapid aid and a longer extended fund facility from the IMF, but must first show it has taken steps to reduce its existing debt burden.

Coomaraswamy said Sri Lanka expects a staff level agreement with the IMF as early as this month, which won’t mean that cash will be disbursed, but could increase confidence in the nation’s financial assets.

The first task however is to agree on a base line for the Debt Sustainability Analysis and those negotiations are underway, Coomaraswamy said. Once the base line is established, Sri Lanka would need to work out what kind of offer it makes to the creditors.

“So it’s going to take some months, and given the fact that our reserves have gone toward almost zero, we need to find some ways of mobilizing,” Coomaraswamy said.

Source: BNN Bloomberg

JVP Leader holds talks with the Chinese Ambassador to SL

Leader of the JVP Anura Kumara Dissanayake and the Chinese Ambassador to Sri Lanka Qi Zhenhong have held discussions at the JVP headquarters today.

The JVP said the economic crisis and present political situation were discussed while the talks also focused on enhancing cooperation between parties.

Propaganda Secretary of the JVP Parliamentarian Vijitha Herath and two officials of the political unit of the Chinese Embassy to Sri Lanka were present during the talks.