Sri Lanka settles payment for 37,500 MT diesel shipment

Udaya Gammanpila, Minister of Energy said that US$ 35.3 million was paid for the 37,500 metric tons of diesel on board the tanker ship which had been docked for four days outside the Port of Colombo.

Mr. Gammanpila further stated that the payment for the oil imported from a Singaporean company was paid last night and consignment of will be unloaded as soon as possible.

Sri Lankans are experiencing island wide power cuts due to the lack of fuel for power plants as a result of shortage of dollars.

At the special cabinet meeting convened yesterday, the President has instructed officials to take steps to ensure a continuous supply of fuel.

India willing to make investments in Sri Lanka

India is willing to make investments in Sri Lanka to help it ease a financial crisis, the Reuters news service quoted Indian Foreign Minister Subrahmanyam Jaishankar as saying.

Sri Lanka has been suffering a severe shortage of foreign exchange, leading to widespread power cuts in recent days after being left unable to pay for fuel shipments.

Finance Minister Basil Rajapaksa is to travel to India again as the relationship between both countries strengthens.

Rajapaksa, who was in India in December, will travel to New Delhi again.

During the upcoming visit Rajapaksa will sign a USD 1 billion financial assistance deal with India.

Meanwhile, Indian Prime Minister Narendra Modi has been invited to visit Sri Lanka in March to attend the BIMSTEC Summit.

Posted in Uncategorized

Sri Lanka Ports Authority to waive penalties for delayed containers as dollar bites

The Sri Lanka Ports Authority (SLPA) is in the process of waiving demurrage charged on containers at the SLPA-owned Colombo port after importers failed to clear them on time amid forex shortage, officials said.

‘’We are still at the primary stage of examining documents and we are still not sure about the amount that will be waived off,” a senior SLPA official told EconomyNext on Tuesday (23).

“We can’t even be sure of the exact number of requested waivers as we have received many in a short period.’’

The island nation’s main port saw hundreds of containers stuck in its dockyards as importers struggled to clear them because they could not open letters of credit or secure adequate US dollars.

The government has given priority to clearing essential food containers to avert a possible food shortage and arbitrary price increase in essential commodities amid higher demand.

The SLPA has already called for documentary evidence to review the eligibility for waivers, as a special concession to importers, towards cargo landed at SLPA-owned terminals (JCT & ECT) pending clearance up to January 31, 2022, in the wake of the prevalent foreign exchange situation.

The SLPA has said “some number of consignments [are] lying uncleared over a significant period of time”.

Importers have complained of no US dollars to clear their imported containers since the last quarter of 2021.

“The individuals have to bring in documents from the bank to prove that they could not pay the fees due to the forex crisis,” another senior SLPA official told EconomyNext.

“Every day we get many documents, and we are working to get them all processed. We are giving preference to food items like rice, sugar, and so on.”

Neither official commented on the total number of containers stuck in the port but claimed that it was not 2,000 as reported in media.

‘That it is not true. At any given time there are a lot of containers coming and going from the dockyards. I don’t know from where these figures went to the media, but there is no such problem.’’

In January 2019, only 10.10 percent of cargo remained in the dockyards for over a week. In January this year, the figure has increased to 11.59 percent. SLPA officers said, ‘There’s an increase but not as drastic as reported, and it is not even worth mentioning.’’

“At this time we were made aware that we don’t need to earn a super profit and charge unnecessary charges to take advantage of this crisis. So the decision to remove the demurrage and penal costs were made while thinking of the importers.’’

Massive drug shortage within three months: Pharmacy owners’ Assn.

A massive drug shortage is imminent as the existing backup stocks of medicines are due to be used up within three months, All-Island Private Pharmacy Owners’ Association (ACPPOA) President Chandika Gankanda said.

He told the Daily Mirror that the country has a 5% shortage of required medicines.

“Medications are labelled with different identification brands. Most of the pharmacies used to give alternative brands to the consumers as the requested brands were out of stock. With the current backup stocks, he believes this practice can not be sustained for long.

If the government does not intervene, there would be a huge issue, which is more than the shortage of cement, domestic gas, and milk powder. Everything in the country is based on people’s health. He said if people suffer from ill health, we cannot think of a future.

“With the current dollar crunch in the country, the manufacturers and importers are unable to manufacture or import the required medicines as they are higher in price. If some of the drugs they import are subject to price control, they cannot sell them in the local market. Most of the drugs are sold at controlled prices.

“If the shortage continues, there would be a possibility of a shortage of insulin (medication). Most of the local drug manufacturing companies used to keep buffer stocks that were sufficient for three months. Therefore, the country does not feel it, “Gankanda said.

Manufacturing of certain products in the country have slowed down due to higher raw material import costs.

If the government cannot remove the control price on certain drugs, they should introduce a price formula that fluctuates according to the dollar rate.

Hence, most of the popular drugs such as paracetamol, Panadol, Panadein, Frisium, normal saline and zinnat are found to be in shortage. Also, there is a shortage of antibiotic syrups given to children in the country.

Mr. Gankanda said that the demand for paracetamol tablets has increased not because of the triple threat of Omicron, dengue, and viral flu in society, but because of not having a sufficient supply.

A list of district wise drug shortages are as follows:

Paracetamol, Panadol, Panadein, Nitrofufurantoin, Nitrocontin, Norfloxacin, Magnesium sulphate (powder), Manorest Oxetol Phenobarbital, Frisium 10mg (keolax), Normal saline, Nitrofurantoin Normal saline, Amikacin injection, Oxetol 300, Azee 500mg, Zinnat 500mg, 250mg Tolbutamide, MINIPRESS XL, TNT.

Posted in Uncategorized

Talks ongoing with several nations for fuel import credit

Energy Minister Udaya Gammanpila said yesterday that discussions are underway with a number of countries to obtain long-term credit facilities for the import of fuel, conceding that there is a huge challenge of allocating US dollars (USD) for the import of fuel at the moment.

Speaking in Parliament yesterday, Gammanpila said that globally, a litre of crude oil is expected to reach $ 115 by mid March.

“We spend $ 500 million on fuel imports per month – this is 50% of our export income. There is a huge challenge of importing fuel at the moment – we admit that. It is not a fuel or medicine shortage that is present in the country at the moment – it is a USD shortage. But we are in discussions to acquire long-term credit facilities to import fuel from a number of countries,” said Gammanpila.

The price of a litre of Brent crude oil reached $ 99 on Tuesday (22), aggravated by the Ukrainian crisis. A special Cabinet of Ministers’ meeting was held on Tuesday evening to discuss the fuel and power crises.

“There is a petrol ship in our waters now. Finance Minister Basil Rajapaksa promised at the said meeting that he will do the needful so that we can start unloading its stocks. There was a shortage of both diesel and petrol stocks at fuel stations over the past few days. The ship carrying diesel stocks started unloading last morning, after the Treasury instructed the Central Bank of Sri Lanka to make the necessary payments. I can bring the fuel ships to our waters. However, releasing the stocks is a matter of giving USD. So far, we have not turned away even one ship,” added Gammanpila.

At the Cabinet meeting on Tuesday, it was decided to not revise fuel prices and for the Government to settle a payment of Rs. 80 billion to the Ceylon Petroleum Corporation (CPC) for the continuous supply of fuel. The CPC has been requesting a fuel price hike the entire month, following an increase of the prices by the Lanka Indian Oil Corporation (LIOC) during the first week of February.

Meanwhile, speaking in Parliament, United National Party (UNP) Parliamentarian Ranil Wickremesinghe noted that spot purchases of fuel should be paid off as soon as possible, in order to ensure that Sri Lanka does not end up paying over $ 100 for older purchases in the future.

Posted in Uncategorized

Sri Lanka likely to receive Pakistan’s US$200mn credit line after top level visit

Sri Lanka is likely to receive a 200 million US dollar credit line from Pakistan for essential food, rice, and cement, sources who are aware of the deal said as the island nation is grappling with a severe foreign exchange crisis.

“It is likely to be signed when a Sri Lankan leader visits Pakistan possibly before the end of this year,” a source who is aware of the progress of the deal told EconomyNext.

Sri Lanka has already borrowed 1.5 billion US dollars from People’s Bank of China, 400 million US dollars from Reserve Bank of India (RBI), and 250 million US dollars from Bangladesh Central Bank via swap arrangements to boost its reserves and avoid a possible sovereign debt default.

Pakistan’s credit line talks come as Sri Lanka’s rice crop may fall 30 percent or more after an overnight ban on fertilizer to save foreign exchange and stop agro-chemical use.

A source from Pakistan who is aware of the ongoing discussion over the credit line said the original request, which came in September last year, was only focusing on a credit line for rice and cement.

However, when Sri Lanka’s Trade Minister Bandula Gunawardena visited Islamabad in January, Pakistan was asked to extend the deal also for essential commodities as well.

“In principle, the Pakistan Prime Minister has approved this and it is in process,” he said.

“The deal will be signed when a Sri Lankan leader visits Pakistan.”

Sri Lanka is trying to finance imports of essential commodities including food and medicines through credit lines for this year amid forex shortages as it is facing risk of sovereign debt default.

Sri Lanka has a habit of going for credit lines every time money printing trigger forex shortages. Credit lines allows imports and consumption to take place on credit or a financial account inflow. Central bankers and other policy makers then complain that the external current account has widened.

The island nation has already signed a 500 million credit line with India to buy fuel from India and Sri Lanka expects to start using this credit line from the first week of April.

India also has agreed for a 1 billion US dollar credit line for Sri Lanka to buy foods and medicines.

Sri Lanka also has been in discussion with Australia for another 200 million credit line to buy lentils and essential foods, local media has reported.

Posted in Uncategorized

Sri Lanka briefs Delhi based diplomatic corps on human rights issue

Sri Lanka has briefed the diplomatic corps based in New Delhi on the human rights and reconciliation issue.

Foreign Minister Professor G.L. Peiris addressed the diplomatic corps based in New Delhi virtually. The objective of the briefing was to share information on progress related to human rights and reconciliation as part of the continued engagement ahead of the upcoming 49th Session of the Human Rights Council, which will commence in the last week of February.

Foreign Minister Peiris appreciated the opportunity to brief Heads of Mission accredited to Sri Lanka based in New Delhi as a continuation of the briefings organized by the Ministry to share current developments. 83 envoys participated in the briefing.

The Minister recalled that at the September 2021 Session of the Human Rights Council he had reiterated Sri Lanka’s commitment to the promotion and protection of Human Rights and to remain engaged with the United Nations including the Human Rights Council. In this context, the Minister referred to the constructive engagement with the international community in a spirit of cooperation and dialogue.

Foreign Minister Peiris said the Government of Sri Lanka has undertaken substantial steps with a view to accountability, restorative justice and meaningful reconciliation which were efforts due to the work of domestic institutions namely the Office for Reparations (OR), Office for National Unity and Reconciliation (ONUR), Office of Missing Persons (OMP), the Human Rights Commission of Sri Lanka (HRCSL) and the Sustainable Development Council (SDC).

The Minister was particularly pleased to inform that after 43 years, the Prevention of Terrorism Act is being amended with the objective of bringing it in line with international norms and best practices. The Minister explained that the PTA is being amended after lengthy deliberations over several months and underlined that the proposed amendments are an initial step towards the promulgation of a more comprehensive anti terror legislation.

He added that substantive amendments to the PTA include amendments to the sections on detention orders, restriction orders, expressly recognizing judicial review of orders, expeditious disposal of cases of those charged to avoid long term detention, repealing sections impinging on freedom of expression and introduction of provisions on access by magistrates and judicial medical officers, prevention of maltreatment and torture during the detention period, right to communicate with the family, grant of bail to long term detainees and day to day hearing of cases.

Foreign Minister Peiris also referred to the accountability process which is being addressed through the Commission of Inquiry (COI) headed by Supreme Court Justice Nawaz and informed that while the recommendations in the First Interim Report had been implemented that the Second Interim Report had also been handed over to the President.

The Foreign Minister also referred to the 9 member Expert Committee appointed by the President to make proposals pertaining to drafting a new Constitution. The Minister stated that the Expert Committee has completed their preliminary consultations and that the proposals will be submitted to the President shortly. He said that thereafter broader public consultations based on a democratic process will follow.

The Foreign Minister responded to questions and appreciated the constructive engagement with the New Delhi based envoys and looked forward to continued cooperation at the UN Human Rights Council and other multilateral fora.

Posted in Uncategorized

Basil Rajapaksa wants local govt polls, Ministers shoot it down amidst crisis

Finance Minister Basil Rajapaksa who has strengthened his power in the present government since taking over his new portfolio has called for local government elections to be held first so that the SLPP could strengthen itself at grassroot level, but his request had been shot down by other senior ministers who said the government is not ready for an election amidst burning issues.

The Daily Mirror learns that amidst talks that a parliamentary election may be held at the end of this year or next year, Basil had said that it was the local government elections that should be held first as this would strengthen the SLPP’S base.

For similar articles, join our Telegram channel for the latest updates. – click here

However senior SLPP ministers who have acknowledged that the country is in turmoil with the forex crisis, high cost of living and the fuel issue say the country is not ready to face any election and this might end by the SLPP weakening itself further.

In fact even the opposition parties including a majority in the SJB have voiced concerns within the parties that they were not ready for an election anytime soon due to uncertainties and splits within political parties, the Daily Mirror learns.

Prime Minister Mahinda Rajapaksa attending the recently held SLPP convention had challenged the opposition to an election to which some

SJB members had vaguely accepted, but senior political sources in the government and opposition said these were mere words and political threats as neither parties were ready for an election anytime soon with some ruling out any election to be held this year.

“If at all the local government elections maybe held next year as this year it seems impossible. The people also need to be ready to vote,” senior political sources said.

In fact the struggles of the parties are widening with new alliances forming from next month within the opposition and government signaling that all major political parties including SLPP, SLFP and SJB were struggling to remain intact.

Assaults on journalists have a fairly long history in Sri Lanka

By Sugeeswara Senadhira
Last week a cowardly attack on a leading media personality took place shocking all who believe in freedom of expression, media rights and democracy. The residence of Chamuditha Samarawickrema came under a foul attack by at least three persons who reportedly came in a white car.

Chamuditha told the media that he was unable to name any party as there were scores of persons angered by his reports for Hiru television as well as the popular social media platform ‘Truth with Chamuditha.’

He added that the status of the police investigation into an earlier death threat received by him remained unclear.

“Although, the Police recorded my statement, I really do not know the outcome of the investigation.” Displaying a desire to bring the culprits to book, the Hiru TV offered a reward of Rs. 500,000 to anyone providing information leading to the arrest of those responsible for the attack.

Attempts to control the press in Sri Lanka are not new. During the colonial era, in 1857, prohibitions on publications were enacted in India and Ceylon in the wake of the mutiny of Indian soldiers in the British Indian Army. In the recent past horrendous attacks on media personalities took place during insurgencies spearheaded by the Janatha Vimukthi Peramuna (JVP) and the Tamil Tigers (LTTE).

Disloyalty results in death

The LTTE leadership ordered the assassination of any media persons who exposed the cruelties of the organization and their young cadres carried out the orders. The Human Rights Watch, in its publication, ‘A Culture of Fear: LTTE Intimidation, Threats and Violence’, stated that since the beginning of the ceasefire in 2002, over 200 people, mostly Tamil, have been killed apparently for political reasons, mainly at the hands of the LTTE. Those killed included teachers, journalists, individuals linked with opposition parties, and others perceived as critical of the LTTE. Some apparently have been killed solely for working in educational, social or religious program funded by the Sri Lanka government. For many Tamils in the West with family members remaining in Sri Lanka, the message was that any act of disloyalty may result in death.

Among the media persons killed by the Tigers are Chelvy Thiyagarajah, founder of a feminist journal called Tholi. She had won the prestigious International PEN award in 1992; Balanadaraja Iyer, Sri Lankan Tamil activist, writer and poet; Kethesh Loganathan, former Editorial Consultant of the Weekend Express, Tamil political activist, Human Rights advocate and Deputy Secretary General of the Secretariat for Coordinating the Peace Process (SCOPP); Rajani Thiranagama, University Lecturer, Author, Tamil human rights activist and feminist and Relangi Selvarajah, Tamil broadcaster and actress.

The JVP too was also responsible for many killings of media personnel. Top media personnel killed by the JVP include Thevis Guruge, Chairman of Sri Lanka Broadcasting Corporation (SLBC); Premakeerthi de Alwis, lyricist and radio and television announcer at SLBC; Kulasiri Amaratunge, News Editor of Sri Lanka Rupavahini Corporation (SLRC); Sagarika Gomes, announcer at SLRC and Jinasena Kasthriarachchi, newspaper correspondent.

The 1989-1991 period saw a rise in the killing of media personnel. While the above assassinations were conducted by armed insurgents, there were several murders for which State agencies or politicians were blamed. The most prominent of one, which came under international limelight was the murder of Richard de Zoysa, journalist, actor, television personality and correspondent for Inter Press Service.

On 18 February 1990 Richard de Zoysa was abducted and murdered by an armed gang, believed to be a State sponsored death squad. He was 32 at the time of his death. Richard was posthumously awarded the 1990 IPS International Achievement Award and the IPS Award for Excellence in Independent Journalism was renamed in his honour.

Media intimidation

Richard’s gruesome killing spurred his mother, Dr. Manorani Saravanamuttu, to launch a campaign for justice for the ‘disappeared’ on behalf of the mothers who had lost their sons, wives who had lost their husbands and sisters who had lost their brothers. Dr. Saravanamuttu’s relentless campaign attracted international attention towards the plight of victims who disappeared without a trace during the 1988-90 terror period. In 1996, she was awarded the ‘Weera Mathru’ title.

The intimidation of media persons continued and some of them had to keep changing their residences for safety. Jiffry Yoonus, popular cartoonist of the Communist Party newspaper, ‘Aththa’ edited by the firebrand B.A. Siriwardena was attacked in 1992. His popular cartoons usually triggered controversy among politicians of the day. But despite harassment and intimidation, he continued his work undeterred for over 50 years. Yoonus described the most harrowing experience faced by him in an interview to ‘Illustrating Asia’ a book edited by American author John Lent in 2001.

“One day in August 1992, three vehicles with about 20 thugs came to my house. A minister’s bodyguard shoved a pistol into my mouth, broke a tooth, and then pointed the gun at my head. He threatened to kill me in front of my wife if I did more cartoons against His Excellency (President Ranasinghe Premadasa). The next day they returned, smashed up my furniture and stabbed me. At the hospital, doctors put 16 stitches to treat the wounds,” Yoonus said.

After this incident, Yoonus vacated his house for safety and lived in a small room in the ‘Aththa’ office building on Cotta Road, Borella.

Last week’s attack on Chamuditha’s residence was condemned by Media Minister Dullas Alahapperuma. “This incident only reveals the pathetic nature of a pathetic faction in society. We condemn this attack as it was an assault on the media as well. The government is committed to exposing the criminals who launched this heinous attack who may now be in hiding. As a responsible politician, I am of the view that the four thugs involved in the attack on Chamuditha’s house must be exposed before long,” he stressed.

Alahapperuma, who has always been a stout defender of media freedom, has assured a transparent investigation and said: “It is my responsibility as the Mass Media Minister to create an environment of media freedom.”

Those who believe in democratic values await a fair and transparent probe as promised.