Six political parties will be temporarily inactivated

The Election Commission has decided to temporarily suspend the activities of the parties which are currently battling in court due to conflicts within the party.

Chairman of the Election Commission Attorney-at-Law Nimal Punchihewa stated that six such parties have been identified so far.

Due to the legal issues that have arisen in the face of several candidates contesting for the posts of secretaries and chairmen of those parties, those parties have resorted to legal action to resolve the relevant issues.

The Chairman of the Election Commission stated that it has been decided to suspend the relevant parties temporarily until the end of the court proceedings.

Accordingly, these parties will not have the opportunity to contest elections until the relevant legal proceedings are completed, said the Election Commissioner.

The Election Commissioner has declined to name the identified parties as it would be prejudicial to the parties concerned.

Sri Lankan Rupee appreciates against US dollar

The Sri Lanka Rupee appreciated against the US Dollar today, in relation with the loan of a US$500 million which was granted from China yesterday.

The Central Bank of Sri Lanka (CBSL) said the selling rate of the US Dollar was Rs. 201.28.

The Bank said the buying rate of the US Dollar stood at Rs.195.72 today.

However, the Sri Lanka Rupee further depreciated against the US Dollar yesterday.
The selling price of a US Dollar was at Rs 204.62 and the buying rate was at Rs 199.80.

The loan has been obtained in a bid to shore up its foreign exchange reserves as the local currency hit a record low.

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Govt. should stick to mandate – Udaya Gammanpila

Energy Minister Udaya Gammanpila takes questions from the Daily Mirror on internal squabbles of the government and his criticism of certain actions. The Excerpts:

Q Recently at a function in Avissawella, you said the government was deviating from the mandate. How seriously did you view it?

If we were to stick to the mandate, the government shouldn’t have brought the 20th Amendment in its original form and it shouldn’t have attempted to sell the East Container Terminal to India, a gross violation of the promise given on page 58 of the President’s manifesto. The government shouldn’t have sought the support of Muslim extremists for the 20th Amendment, if the government wanted to stick to its mandate. Similarly, politicians shouldn’t have harassed and interfered with the good work of public officials. I have a list of such instances. I am not yet ready for a public discussion. We are strong of the view that the government should stick to its mandate and fulfil the aspirations of 6.9 million people who voted for the government at two successive elections. For that, several key public officials should be changed. Unnecessary political interference should be stopped.

Q What do you mean by referring to ‘unnecessary political interference and removal of key public servants’?

We are still confining these discussions to the coalition.

Q Does this political interference come from the top?

My wish is that I should never be able to discuss these things in public. Let our internal struggle be victorious! I don’t want to see that dark day when we discuss these issues in public.

Q You have already been critical of the government. Doesn’t it make it uncomfortable for you to be in the government?

Since I am a co-cabinet spokesman, I have been very cautious of whatever is uttered by me. Whenever I have been critical, those were on the instances where the government has violated its mandate. There is indeed a collective responsibility among the Cabinet members. But, our responsibility towards the public is much greater than the responsibility towards my Cabinet colleagues. Unless for the people who elected me as an MP, the President would not have got the opportunity to appoint me as a Minister. Because of that, my responsibility and accountability towards my Cabinet colleagues are less significant than my supreme responsibility towards the public.

Q Are you optimistic that the Government can be put on track?

When I misbehaved as a child, my parents were more sensitive than anybody else. They were the ones who blamed me the most. They were the ones who had punished me the most. They punished me not because they were angry, jealous or vicious, but they loved me. We underwent a lot of pain and difficulties to bring this coalition to power. For us, this government is a child of our own. We have the feelings of parents. That is why we blame the government where it is necessary. It shouldn’t be confused with the behaviour of the opposition. The opposition blames the government with the aim of toppling it. We blame the government to put it on the correct track.

Q How has such internal squabbling affected the realization of economic goals?

Everybody should admit that this government could not achieve economic goals set before the elections because of the unexpected emergence of the pandemic. We should also be genuine enough to admit that the President was able to manage the economy very well in the backdrop of the pandemic. The statistics reflect this. The world economic growth in 2020, was -6%. We were able to do that without locking the country down. Unfortunately, this remarkable achievement has not been appreciated in the political arena. The pandemic has indeed caused a lot of challenges and difficulties.

Similarly, it has brought a lot of new opportunities. If we could come out of the pandemic earlier than our neighbours, there would have been great opportunities for us to grab. After the pandemic, a lot of European, US and Japanese business giants have decided to relocate their factories and regional headquarters from China to anywhere else in Asia.

Considering our ideal geographic location, sound legal system coupled with a well-educated, disciplined workforce, we can attract these investments. India is struggling with the pandemic causing the US software companies to look for alternatives. Sri Lanka is an ideal alternative. Masks and hand gloves have become new day-to-day essentials in the pandemic atmosphere. Sri Lanka’s main export is garments. So, we can easily switch to manufacture masks. Sri Lanka is a leading natural rubber producer in the world. There are several rubber-based producers in the world having factories in Sri Lanka. We can easily grab the emerging demand for gloves.

“Everybody should admit that this government could not achieve economic goals set before the elections because of the unexpected emergence of the pandemic. We should also be genuine enough to admit that the President was able to manage the economy very well in the backdrop of the pandemic”

Q The government is getting ready to conduct the elections to the Provincial Council. How does it go with the mandate?

The President promised to bring the new constitution in the manifesto. He promised to do so before the completion of his second year into office. If the new constitution suggests a new election method for the provincial councils, it may contradict the Provincial Council Elections Act drafted by the government.
Hence, the government should consider both these documents in parallel. According to unofficial sources, the constitution formulation committee chaired by Romesh de Silva has almost finalized the draft. Unfortunately, the SLPP (Sri Lanka Podujana Peramuna) has not shown keen interest in pursuing the formulation of the new constitution. According to the source, they have refused to make submissions to the committee appointed by the President to draft the constitution.

Q It means the new constitution does not see the light of the day. Doesn’t it?

If we are to stick to the mandate, we should bring the new constitution before November 18, this year.

Q When talking about your subject, you promised to enlist Sri Lanka a gas and oil-producing country. How far have you progressed?

As I have explained to you previously, I made an in-depth analysis of why we have failed in the past. We identified four issues. We drafted the new Bill not only consulting stakeholders in Sri Lanka, but also potential investors in the oil industry. It has received the approval of the Cabinet and the Legal Draftsman. It is now with the Attorney General.
We are hopeful that the AG’s nod could be obtained shortly. After that, with confidence, we have planned to go before the industrial giants to invite them to Sri Lanka for oil exploration. Sri Lanka’s prospects are very positive. When we drilled four wells in 2011, three out of the four brought positive results. The industry norm is one out of seven wells.

“Unless for the people who elected me as an MP, the President would not have got the opportunity to appoint me as a Minister. Because of that, my responsibility and accountability towards my Cabinet colleagues are less significant than my supreme responsibility towards the public.”

Q What is the present status of the petroleum project in Trincomalee?

As I mentioned earlier, we have agreed in principle. Details are under negotiations.

Q Is there any plan for fuel price revision?

The world market prices are rising. The last revision was done on September 1, 2019. Then, the crude oil price was around US$ 60 a barrel. The present prices are in the range of US$ 70. It reflects that a price increase is overdue. We are trying to absorb the cost and not to burden the already-burdened consumers.

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Port City qualifies to be a state; would become a Chinese colony -Wijeyadasa cautions

The Colombo Port City qualifies the four prerequisites — population, territory, sovereignty, and government — required to qualify as a statement, lawmaker Dr Wijeyadasa Rajapakshe has cautioned.

“That (the Colombo Port City) would become a Chinese colony. Foreigners can acquire that land and sell them,” Rajapakshe said during a media briefing on Thursday.

He pointed out that matters regulations concerning the Port City will not be brought before Parliament.

“The payment of salaries in this area will be made in foreign currency,” Rajapakshe said. “If we purchase goods in that area, we must pay taxes for that. That is similar to paying taxes in a foreign state”.

The parliamentarian pointed out that the Special Economic Commission of the Port City has powers to enter into agreements with foreign states as well.

Rajapakshe also claimed that President Gotabaya Rajapaksa has not been making decisions of his own will and that Basil Rajapaksa has been influencing him since his election to power.

“Gotabaya Rajapaksa is only a puppet of Basil Rajapaksa,” the parliamentarian remarked.

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‘We will not allow Sri Lanka to become a Chinese Colony’ – Muruththettuwe Thero

‘We will not allow Sri Lanka to become a Chinese Colony’, said Venerable Muruttettuwe Ananda Thero, the Chief Incumbent of the Abhayarama Temple in Narahenpita.

Speaking to reporters the Venerable Thero said the clergy do not oppose the Colombo Port City or investments, however, the Colombo Port City is posing a threat to Sri Lanka’s sovereignty and is to become a Chinese Colony.

The Venerable Thero was instrumental for the present government to be elected to power and he told reporters that the Sri Lanka Podujana Peramuna and the present leadership were created from the Abhayarama Temple in Narahenpita.

“It is clear the country is heading on the wrong path,” said the Venerable Thero.

“We cannot allow anyone to destroy this country and whatever was destroyed must be rebuilt,” said Venerable Muruththettuwe Ananda Thero.

Sri Lanka’s Western Province will face challenged because of the Port City, he said adding the country’s leadership was elected to build the country and not to sell it, let alone lease it.

‘The leadership should not ink agreements in secret. Any agreement should be subject to discussion,” he said.

The country’s leaders must understand that just as the people voted to elect the President and the Government, the people would also rise against destructive programs.

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Port City Economic Commission Bill challenged in Supreme Court

A number of petitions have been filed at the Supreme Court challenging the Government’s proposed Port City Economic Commission Bill.

The United National Party (UNP) filed two separate petitions today on behalf of the General-Secretary of the UNP and the Chairman of the UNP. The Attorney-General has been named as a respondent in the petition.

Issuing a statement, the UNP pointed out that the Port City project is of national importance and if properly implemented will greatly benefit the country’s economy.

The Party further questioned as to why the process of this Bill, which is of national importance, has been carried out in a hurried manner, lacking any proper transparency.

This important piece of legislation has been presented to the Parliament on the eve of the Sinhala and Tamil New Year, failing to allow for proper examination and consultation, the UNP said.

The Party said, accordingly, it has challenged the Bill on the grounds that it is inconsistent with the Constitution of the country and will fail to fulfill its purposes.

“This Bill, in its current form, is inconsistent with Parliament’s control over public finances, allows for the abuse of power and fails to ensure a transparent system of checks and balances, “it said.

The UNP said furthermore, the Bill is considered to be in violation of Articles 3 & 4 of the Constitution in regard to the Legislative, Judicial and Executive powers of the citizens of the Democratic Socialist Republic of Sri Lanka.

Meanwhile, the Bar Association of Sri Lanka also filed a petition with the Supreme Court challenging the Colombo Port City Economic Commission Bill.

The Centre for Policy Alternatives (CPA) had also filed a petition today challenging the Colombo Port City Economic Commission Bill.

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Ranil has declined party calls to take up UNP national list seat: spokesman

Former Prime Minister Ranil Wickremesinghe has declined a unanimous request from the United National Party (UNP) working committee to take up the party’s national list seat in parliament, a spokesman said.

Media spokesman for the UNP leader Dinouk Colombage told EconomyNext that Wickremesinghe had told the working committee that a younger member should take up the one seat the party is entitled to.

However, UNP Chairman Vajira Abeywardena told reporters in Galle yesterday that the party leader will be representing the UNP in parliament in about two months.

“The UNP has taken a unanimous decision that the seat should be taken up by Mr Ranil Wickremesinghe. There is no debate over it. Even people bearing different political opinions to us say that he should be the one to represent the party in parliament,” he said.

Another source close to the UNP leadership told EconomyNext that Wickremesinghe is of the position that, since he was defeated at the polls, he ought not to enter parliament through the national list.

The UNP suffered the party’s worst defeat in its history at the August 2020 parliamentary elections, failing to secure even a single seat barring the one national list seat allotted to the grand old party.

The breakaway of the faction led by then UNP deputy leader Sajith Premadasa contributed significantly the party’s spectacular defeat.

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Sri Lankan Rupee further depreciates Rs. 204.62 against dollar

The Sri Lankan rupee dipped further today against the US dollar, as the selling rate of a dollar was recorded at Rs.204.62.

The previous lowest was Rs.203.73 recorded on Monday, 12 April.

The buying rate of US dollars today was recorded at Rs.199.80 per dollar.

Sri Lankan Foreign Secretary responds to Western criticism on China

China and Sri Lanka have enjoyed a close relationship for decades. With the pandemic still raging around the world, China is donating vaccines to Sri Lanka. 600,000 doses have recently arrived in the country. Top officials from both countries also vow to advance relations. To discuss China-Sri Lanka cooperation in the post-pandemic era and the West’s skepticism in this regard, CGTN anchor Zou Yue sat down with Sri Lankan Foreign Secretary, Admiral Jayanath Colombage.

Adm. Colombage pointed out that due to Sri Lanka’s location across the world’s busiest sea lanes and its aspirations to become the maritime hub for the Indian Ocean region, developing port-related infrastructure is of critical importance.

“In that regard, the Belt and Road Initiative is seen as a very positive project in order for us to be more connected with the global supply chains and the maritime commerce,” said Adm. Colombage. “We wish to see that the Belt and Road Initiative really derives the best possible results for the country, the region, and the world.”

In response to the West’s concern that China’s investment adds to Sri Lanka’s debt burden, Adm. Colombage acknowledged that the country does have a debt issue since the debt-to-GDP ratio is about 86 percent. “But the accusation of ‘debt-trap diplomacy’ by China is not true.” He said as of 2019, less than $9 billion of Sri Lanka’s $57 billion debt was taken from China.

He also defended the Hambantota Port project, arguing that it is the closest point in Sri Lanka to the busiest shipping lanes across the Indian Ocean. He said Sri Lanka welcomes China’s investment, including the investment on the third phase construction of the Hambantota Port and the megaproject of Port City.

“Because of the debt situation, we’re not interested right now in taking more loans… what we are now interested in is attracting foreign direct investment by using the strategic location,” Adm. Colombage said. “In that sense, we do welcome investment from anywhere. And right now China is the largest investor, and we do welcome China’s investment very much.”

In addition, Adm. Colombage weighed in on Xinjiang affairs. Speaking from his own experience, he said he was amazed at the region’s fast development, which was contrary to some Western media’s portrayal of the area as an underdeveloped and unsafe region.

“I was very happy to see that peace, tranquility, and development have come to the western region of China too in a very big way,” said Adm. Colombage. “Coming from Sri Lanka, which has experienced a very bitter conflict with a very ruthless terrorist group for nearly three decades… I was very happy to see that you have been able to eradicate terrorism completely… I think Xinjiang is a case, like in Sri Lanka, a post-conflict success story.”

Adm. Colombage also brought up human rights issues, which China has been criticized by the West. “What is the use of human rights when you don’t have right to life. The most important thing that any government should do is to ensure that the right to life is enshrined for people.” He said Xinjiang’s security and development are a great achievement for the region.

To conclude, Adm. Colombage said that there are different systems of governance in this world and there’s no “one size fits all.”

“Every country needs to come out, needs to experiment, and needs to develop and decide what is the best system of governance for its own people,” said Adm. Colombage. “The fact that China has risen to the number two spot in the world economy speaks a success story… In that sense, I think the Chinese system is working.”

Source:CGTN

SriLankan Airlines Billion Dollar Lawsuit Against Airbus Continues

Colombo-based SriLankan Airlines is continuing to pursue its lawsuit against European plane builder Airbus. The lawsuit revolves around murky allegations of bribery, reputational damage, and lost income. As a result, on Wednesday, SriLankan Airlines’ CEO Vipula Gunatilleka said its outstanding order with Airbus remains up in the air.

Murky allegations of bribery, shelf companies, and multi-million dollar payments

Last month, SriLankan Airlines lodged a lawsuit against Airbus in an undisclosed jurisdiction for US$1 billion in damages. SriLankan Airlines had ordered six A330-300s and eight A350-900s under a purchase and lease deal.

The dispute can be traced back to a UK 2020 Crown Court ruling. It found that Airbus had engaged in bribery in relation to aircraft deals. Sri Lankan Airlines is seeking damages concerning the loss of reputation, interest, and other expenses. Sri Lankan Airlines also wants to cancel an outstanding order for four A350-900s and would like the $19 million it paid in pre-delivery payments back.

The core of the allegation concerns Airbus purportedly offering a Bandar Seri Begawan-based shelf company $16.8 million in bribes regarding the SriLankan Airlines deal. Of the amount, reports suggest only about $2 million was paid.

Last year, British authorities criticized Airbus for its “endemic” failure to stamp out bribery connected to its commercial and defense aircraft operations. That shelf company in Brunei (who took the wife of a SriLankan Airlines executive on as a business partner) was alleged to have attempted to influence the deal with Airbus.

The messy lawsuit is a far cry from both SriLankan Airlines and Airbus’s chumminess when the original order was made.

Airbus A350 order up in the air, but looks unlikely to proceed

Speaking at a CAPA Live event on Wednesday, SriLankan Airlines CEO Vipula Gunatilleka wouldn’t confirm or deny he was axing the A350 order. Instead, he hedged his bets.

“I’m unable to comment on that,” he said. But he was definitely lukewarm about the deal.

“Today, the market dynamics are different,” he said about the original deal. Referring to current lease rates, Mr Gunatilleka said he could pick up an A350 for $650,000 – $700,000 per month. “I‘m going to the manufacturer as needed, and we can look at a leaseback facility that is more advantageous to us.

It’s not just SriLankan Airlines caught up in this mess. The offenses spanned countries including Taiwan, Indonesia, Malaysia, Nepal, Russia, China, and Colombia. Airbus settled with United Kingdom authorities, effectively paying $4.3 billion to settle claims and avoid prosecution. The British authorities specifically looked at possible offenses committed regarding purchase and leasing deals with AirAsia, Garuda Indonesia, and TransAsia Airways.

Despite his airline’s ongoing dispute with Airbus, Vipula Gunatilleka isn’t ruling out further business with the aircraft manufacturer.

“Let’s see how it goes,” the SriLankan Airlines CEO said on Wednesday. But he’s leaning towards the A330s rather than the A350. The airline currently has a dozen in its fleet. They take care of Sri Lankan’s long-haul flying. “I think for our type of operation, the A330s are ideal.”

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