Category: News

A Gazette notification has been issued extending the tenures of Municipal Councils, Urban Councils and Pradeshiya Sabhas until March 19, 2023.

The Gazette has been issued today (10) by the Minister of Public Services, Provincial Councils & Local Government Janaka Bandara Thennakoon exercising the powers vested in him by the Municipal Council Ordinance, Urban Council Ordinance and Pradeshiya Sabha Act.

Accordingly, the term of each member of all 24 Municipal Councils, 41 Urban Council and 275 Pradeshiya Sabhas have been extended until March 19, 2023.

The Human Rights Commission of Sri Lanka (HRCSL) has written to Inspector General of Police (IGP) C.D. Wickramaratne last week, requesting that the Police inform the HRCSL about an individual who is arrested or detained under the Prevention of Terrorism Act (PTA) within 48 hours to the HRCSL.

In the letter addressed to IGP Wickramaratne, HRCSL Chairperson Supreme Court Judge (Retd.) Justice Rohini Perera Marasinghe had pointed out that this request is made within the powers mandated to the HRCSL under Section 28 of the HRCSL Act No. 28 of 1996 (duty to inform Commission of arrest and power of Commission to inspect to obtain information).

She had further pointed out a number of steps that the Police must take with regard to those who are arrested under the PTA, including informing the HRCSL of their release or transfer. She had claimed that this information was not duly received by the HRCSL, and had requested IGP Wickramaratne to inform police officers of this requirement.

Moreover, the HRCSL has requested that a monthly list of those who are arrested under the PTA, released or transferred be sent to the HRCSL from all police stations, for better monitoring by the Commission.

On 29 December, Marasinghe, along with the other commissioners, met the heads of the Criminal Investigation Department (CID), Terrorism Investigation Division (TID), and the Police Legal Division, where detainees currently being held under the PTA had been discussed.

Calls to repeal the PTA grew last year, both locally and internationally, with UN High Commissioner for Human Rights Michelle Bachelet emphasising the need for its repeal in her oral update about Sri Lanka earlier last year.

The European Parliament, earlier last year, called on the Government of Sri Lanka to repeal the PTA and the European Commission to consider the temporary withdrawal of the Generalised Scheme of Preferences Plus (GSP+) trade concession from Sri Lanka if it is not done. The GSP+ Monitoring Mission for the Third Cycle visited Sri Lanka during the months of September and October, meeting civil society members, politicians, and other stakeholders about a number of issues including the PTA.

The Morning reported at the time that the Ministry of Justice, in its discussions with the European Union (EU) delegation, had assured them that necessary amendments will be made to the PTA within the next six months. The 24th Session of the EU-Sri Lanka Joint Commission in the first quarter of 2022 will witness the review of all aspects of bilateral co-operation.

Last year, President Gotabaya Rajapaksa also appointed a three-member Advisory Board under Section 13 of the PTA, to make recommendations on actions to be taken on detainees and remand prisoners held under the PTA.

The first draft of the renewed PTA report was presented to President Rajapaksa on 15 November by Committee Chairman and Defence Secretary Gen. (Retd.) Kamal Gunaratne.

Ten Tamils who were arrested by the Sri Lanka Police on 18 May under the provisions of the PTA were released on bail on 8 December by the Valaichchenai District Magistrate’s Court. According to the Journalists for Democracy in Sri Lanka (JDS), the party had been arrested for lighting a flame of remembrance for war victims at Kiran beach in Kalkudah, Batticaloa. It was reported that these individuals were held under the PTA for a period of seven months.

Nobody will make the decision for the Sri Lanka Freedom Party (SLFP) to leave the Government, and it will be a decision taken after discussions between the SLFP and the President himself, says the Deputy Chairman of the SLFP, Mahinda Amaraweera.

Speaking to media on Monday (10), SLPP and SLFP members expressed opinions on whether or not the Government would lose its 2/3rd majority as a result of its own factions criticizing the Government.

Citing the reports of the former President himself criticizing the Government, the State Minister of Transport, Dilum Amunugama stated that it is not an issue for the Government, and the assistance of the SLFP is not necessary for a party that was able to elect the President and the Prime Minister.

Speaking further, the State Minister reminded that the SLPP is a party that rules with an additional one seat at the Parliament and that they do not need a 2/3rds majority to govern.

“Mark my word, just because they are part of the 2/3rds majority we cannot be patient every time, they will finally leave us,” he added, speaking to media.

Meanwhile, the Deputy Chairman of the Sri Lanka Freedom Party (SLFP), Mahinda Amaraweera stated that the SLFP is not owned by anyone, and is a party that assisted in forming the Government,

“It was the President who we supported and formed a Government which obtained 2/3rds majority with our assistance,”

Furthermore, the SLFP Deputy Chairman stated that the party came and joined with the Government based on the request by President Gotabaya Rajapaksa.

“We don’t let anyone make a decision about us on joining or leaving the Government, it will be a decision that we will make,” he added.

As Sri Lanka is facing an economic crisis mainly due to the Covid-19 pandemic, China has expressed its desire to resume the stalled Free Trade Agreement with Sri Lanka in order to boost exports, China’s Ambassador to Sri Lanka Qi Zhenhong said yesterday.

He said that visiting State Councillor and Foreign Minister Wang Yi held positive discussions with the Sri Lankan government leaders on the FTA.

“During the State Councillor’s visit this time, he himself and leaders of Sri Lanka’s government had a very good discussion on the Free Trade Agreement (FTA) as well as Comprehensive Economic and Technical Framework Corporation,” the ambassador told a group of newspaper editors last evening.

He also questioned why the Sri Lankan government halted talks with the Chinese government on the FTA. “Already we had six rounds. I would like to ask the Sri Lankan government why the talks were halted. I don’t know why,”the ambassador said.

Since 2017, during the last regime, ministerial level discussions were held on the possible FTA between two nations but halted reportedly due to some conditions in the proposed FTA. Ambassador Qi Zhenhong also said if Sri Lanka is able to have this FTA, it can export products to a market of 1.4 billion population in China.

The ambassador also said that when State Counsellor Wang Yi had discussions with the Sri Lankan leaders, he explained that “we should encourage exports and professionals to study the FTA discussions very soon.” “Wang said any questions or concerns on the FTA from the Sri Lanka side can be raised.we are open for that,”adding to that the ambassador said that “if one particular item is not good enough for Sri Lanka, you can ask more and we will do the study, as we have a flexible policy.”

The Colombo-based Pathfinder Foundations issued a statement on Sunday saying that Sri Lanka’s economic crisis is so severe that it has no room for maneuver and that it should go for debt restructuring and begin talks with the IMF.

Here is the statement in full:

The Government has spoken of both Rupee and Dollar shortages. The severity of these problems is reflected in the following startling data points.

On the lack of Rupees (or fiscal space) for the government, interest payments alone account for over 70% of revenue. This is possibly the highest in the world. In addition, salaries and pensions account for over 90% of revenue. So, interest and salaries/pensions together amount to over 160% of revenue. It is hardly surprising, therefore that the Central Bank’s net credit to government (money printing) amounts to Rs. 1.1 trillion as at November 2021. This vast amount of money printing inevitably fuels inflation; exerts pressure on the balance of payments by boosting imports; and undermines exchange rate stability.

As for the Dollar illiquidity, net foreign assets of the Central Bank recorded a deficit of $1.6 billion as at the end of November 2021. The net foreign assets of the total banking system amounted to a deficit of US$ 4.1 billion. This explains vividly the cause of the large scale scarring of the economy that is arising from the massive shortage of dollars. Turning this around will require radical action, including a debt restructuring and decisive measures to attract foreign inflows.

The consequences of these twin problems have already been severe. Inflation, particularly food inflation, has been rising sharply. There have been shortages in food items, including milk food; fuel; gas; and medicines. There is also a rampant black market in foreign exchange. Businesses have collapsed and livelihoods have been lost.

The Pathfinder Foundation in its previous articles has urged that immediate priority be given to: (1) restructuring external debt; (2) negotiating an arrangement with the IMF; and (3) mobilizing bridging finance to meet the external financing gap in the next six months.

A debt re-structuring will provide breathing space to stabilize the economy. An IMF arrangement can catalyze much needed foreign exchange both directly from multilateral institutions and some bilateral donors; and indirectly by increasing confidence among investors and creditors. The bridging finance is necessary to fund essential imports and meet immediate obligations until the negotiations on the debt re-structuring and the IMF programme are completed.

The package of relief from India that is now expected is an encouraging beginning in terms of a bridging arrangement. However, it will only buy a couple of months’ time. This positive initiative needs to be supplemented by negotiating support from other friendly countries, including Japan, to obtain bridging finance that would be required during the time it takes to negotiate a debt restructuring and an IMF programme (about six months).

Action on all three fronts identified above needs to be initiated immediately to stem the ever deepening crisis and support sustainable recovery.

This is A Pathfinder Perspective issued by the Pathfinder Foundation can view on https://pathfinderfoundation.org/ Readers’ comments via email to pm@pathfinderfoundation.org are welcome.