Sri Lanka Electricity (Amendment) Bill passed in Parliament

The Sri Lanka Electricity (Amendment) Bill was passed in Parliament without amendments this evening.

The Bill was presented in Parliament by Minister of Power and Energy Kanchana Wijesekera.

Minister Wijesekera said the Bill is essential for Sri Lanka to ensure low-cost power generation in future.

Accordingly, the second reading of the Bill took place in Parliament today.

Following the second reading debate, the opposition requested for a division.

Accordingly, the bill was passed with a majority of 84 votes.

120 Parliamentarians voted in favour of the bill while 36 MPs voted against it. 13 Members abstained from voting.

The Speaker of House is required to ratify the bill to become a law.

Meanwhile, several trade unions including the Ceylon Electricity Board Engineers’ Union vehemently opposed the move to pass the bill.

The CEB Engineer’s Union also decided to stage an indefinite strike yesterday.

However, following talks with the President, the strike action was called off.

In that backdrop, Minister of Power and Energy Kanchana Wijesekera reiterated that he will not be deterred by the unions’ threats and will take forward the bill which will pave the way for the introduction of low-cost renewable energy projects in future.

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Cannot go for an election until economic crisis is addressed: ECSL Chairman

If an election is held, it will be free and fair only if there is an environment to support that, says the Chairman of the Elections Commission, Attorney-at-Law Nimal G. Punchihewa.

The ECSL Chairman further stated that although the commission currently has only Rs. 5 billion now, the amount will likely increase two to three times.

However, he pointed out that money is not the issue, but there is a question whether those in queues for gas and kerosene can make a decision according to their conscience.

Therefore, he said that Sri Lanka will have to go for an election after the economic crisis is addressed.

“The people are emotional now. We don’t know how it will affect the outcome of the election. This may lead to various groups of thugs emerging apart from political parties, and it may create security issues at filling stations,” he stated.

Punchihewa said that if an election is to be held now, it will be similar to the district elections in 1982 and the provincial elections in 1999, which is not needed at the moment.

Basil leaves: Sri Lanka’s former finance minister quits parliament ahead of 21st amendment

Cash-strapped Sri Lanka’s former Finance Minister Basil Rajapaksa vacated his parliamentary seat on Thursday (09) downplaying his role in the country’s worst ever forex crisis, without ruling out a comeback, and likening the Rajapaksa family to India’s RSS.

Exactly one month after his older brother and then Prime Minister Mahinda Rajapaksa resigned against a backdrop of bloody violence, the younger Rajapaksa announced his departure from the legislature Thursday morning at the Sri Lanka Podujana Peramuna (SLPP) headquarters where he fielded questions from reporters eager to press him on his part in the ongoing calamity.

Rajapaksa appeared to be in a beaten-but-not-defeated mood as he attempted to use humour to deflect questions about his responsibility and, at one point, even seemed to shift the blame to the very people who had voted for his party, the SLPP.

“No, I’m not passing the buck to the people. But yes, they do hold some responsibility for electing us to power. If, as you say, we passed the buck, then those who gave us the buck in the first place are also responsible,” said Rajapaksa, quickly recovering from a question that had visibly agitated him

It was the one moment in the hour-long press briefing in which he lost his cool.

The former finance minister’s ouster was one of the key demands of Sri Lanka’s protesting public. Among the anti-government slogans shouted at protests islandwide was the earworm “Kaputu kaak, kaak, kaak” followed by a chorus of “Basil, Basil, Basil, Basil.” The somewhat elitist meme originated from a video in which Rajapaksa was heard using the Sinhala word for crows, “kaputas”, in the plural form, at a discussion held in English, for which he was relentlessly mocked on social media.

Asked to comment on his “new brand”, Rajapaksa claimed that he had made the singsong protest slogan his phone’s ringtone.

“I mean, it’s not a bad animal, really. I hold no grudge against any being. I do not seek vengeance.

“It’s my ringtone now. The phone goes ‘Basil Basil’ when it rings.

“The first bit is played back at a lower volume,” he added with a chuckle.

On more serious matters, Rajapaksa was no less facetious. When questioned about the erosion of Rajapaksa popularity, he said: “I think we can see that our family is better at politics than at governance.”

The former minister and architect of the SLPP said that there are such cases globally.

“India’s RSS has been around for years, but they do not govern directly. The BJP has taken on that role,” he said.

However, he does not foresee an immediate end to the Rajapaksa dynasty.

“Sri Lankans elected a Rajapaksa president three times: twice with Mahinda Rajapaksa, and once with Gotabaya Rajapaksa,” he said.

As for his own plans, the youngest Rajapaksa sibling said though he has retired from governance, he will continue to play an active role in politics. His resignation from the SLPP’s national list slot, he said, was for someone the party deems suitable to take his place.

Speculation has been rife that that someone will be businessman Dhammika Perera. Rajapaksa’s answers to questions about Perera’s entry to active politics were vague, at best.

“I don’t know about that. That is a decision that’s up to the party.”

However, he did say later on that if Perera wishes to implement some of the plans he had proposed for the country, there is no reason he should not be given an opportunity to do so. The same is true, he said, for anyone from the ‘aragalaya’, Sri Lanka’s youth-led protest movement.

“I invite anyone from the Aragalaya to take my place,” he said.

Regarding the economic crisis and the immense hardships imposed on the public, apart from a hurried “apology” at the end of the press briefing for any mistakes made during his tenure as Finance Minister, there was no heart-rending mea culpa from the former MP.

He brushed aside any suggestion from the journalists present that he and the Rajapaksa administration had been the authors of the agony the people were now feeling.

“I’m no longer finance minister.

“Since 1951, this country has been run the same way, on debt. No government has tried to change this. After my appointment, I tried to some extent enable the people to stand on their own feet.

“It may or may not have worked, but if there is something this country is getting now [in terms of financing], it is only what I was able to secure as finance minister,” he said.

Pressed for more honesty, Rajapaksa claimed the crisis was already there when he came on board as finance minister. He forcefully rejected suggestions by journalists that his government was responsible for the erosion of Sri Lanka’s foreign reserves which had stood at seven billion US dollars in late 2019 when his brother President Gotabaya Rajapaksa was sworn in.

“There was no seven billion dollars when I came on. I do not accept that reserves went down to zero under me. There were no reserves when I was appointed,” he said, adding that fertilizer and other essentials were being purchased today with loans that he had helped secure.

Rajapaksa said the government had been divided on approaching the IMF for assistance, and that reconciliation between two pro and anti-IMF camps had to be achieved.

“I sent the first letter to the International Monetary Fund (IMF). It was after that that two IMF officials came and met me and President Rajapaksa,” he said.

President Rajapaksa had earlier said in a televised address to the nation that it was a mistake to not go to the IMF. Former Finance Minister Rajapaksa, however, in some apparent revisionism said that the president had in fact said the IMF should’ve assisted Sri Lanka sooner.

There has been speculation that the proposed 21st amendment to Sri Lanka’s constitution is being delayed due to machinations by Basil Rajapaksa against a provision to ban duel citizens from entering parliament. Rajapaksa is a US citizen and visits that country regularly. Some former influential government ministers who now function as independent MPs in parliament famously called him the “Ugly American” and accused him of carrying out a US agenda, a claim which Rajapaksa rejects.

“Personally I’m opposed to the 21st amendment,” he said, but added quickly that it was not due to personal reasons.

A constitution must serve the public interest, he said. “We can’t take the power given by 6.9 million voters to one leader and confer that on someone who only managed over 250,000 votes,” he said, referring to Sri Lanka’s newly sworn in Prime Minister Ranil Wickremesinghe.

“I definitely support certain aspects of the 21st amendment, such as the provisions on independent commissions.

“I don’t know if the amendment will pass,” he said, adding however that decentralisation of power to benefit the public is important.

If the executive presidency is to be abolished, Rajapaksa said, Sri Lana’s provincial council system – a legacy of the 1987 India-Sri Lanka Accord – must be reformed in the interest of maintaining the island nation’s sovereignty and unitary character.

Though he would personally have voted against it, he said, the decision to vote for the amendment or not remains with the party, which he says he will continue to work with.

Basil Rajapaksa leaves parliament, which he entered as an unelected MP via the national list, with Sri Lanka’s economy freefalling around the hapless and increasingly desperate citizenry.

He, however, believes he did his best.

“I think I did [do something] to the best of my ability. But I couldn’t do everything the people had expected,” he said.

Asked if his resignation was a permanent one, Rajapaksa said: “If the people decide so, perhaps; but if they want me back, I’m ready for that too.”

“I know it’s going to be even more difficult going forward. We must all work together. We’re ready to extend any help to the present administration and whoever may be coming next,” the former minister said.

He expressed hope that global conditions will also improve, facilitating Sri Lanka’s recovery.

“I hope the Ukraine crisis is resolved and tourism will pick up again.

As he stood up to leave the briefing he said: “I would also like to express my sincere apologies to the people if there were any mistakes made.”

Pay in foreign currency if you want to perform Hajj, Govt. tells SL Muslims

The Sri Lankan government has announced that Muslims would be allowed to perform Hajj this year provided they pay their travel costs in foreign currency, as the country faces its worst economic crisis in recent memory.

Last month, Sri Lanka’s umbrella association of pilgrimage organizers said its members would suspend operations because the cost of sending worshippers to Makkah — estimated at $10 million — would be too high for the country to bear when it is struggling with the worst financial downturn since independence in 1948, and has already defaulted on its foreign debt repayments.

The suspension was conditionally lifted by Religious Affairs Minister Vidura Wickremanayake on Tuesday, following consultations with Muslim parliamentarians and Environment Minister Naseer Ahamed, who also oversees Middle Eastern affairs.

“At the request of the Muslim groups led by Minister Ahamed, we have decided to fulfil the quota of pilgrims by requesting them to pay for their Hajj package in foreign currencies, which will not affect our national economy,” Wickremanayake told Arab News.

“I have requested the Central Bank to work out the modalities of working out this pilgrimage and they would help them find an easy passage to and from Makkah this year.”

Muslims make up almost 10 percent of the country’s population of 22 million, which is predominantly Buddhist.

This year, the country has been allocated a quota of 1,585 pilgrims to perform the Hajj, after Saudi Arabia announced it would allow 1 million foreign and domestic Muslims to travel to the holy sites in Makkah.

While it is unlikely that Sri Lanka would fill the entire quota, Ahamed, who discussed the issue with Wickremanayake, said that even sending a reduced number of pilgrims this year would help the country keep its allocation. This year’s number is already lower than in 2019, before the coronavirus pandemic upended Hajj travel.

“Since the pilgrims have been asked to pay for their package in foreign currencies, we cannot expect to make use of the full quota this year. But it’s good to take some pilgrims to keep Sri Lanka’s quota intact for next year too when things would get eased,” Ahamed told Arab News.

“Three years ago, we got a Hajj quota of nearly 4,000 and this year we do not want to miss this 1,585 quota for Lankan pilgrims.”

One of Islam’s five main pillars of faith, the Hajj was restricted over coronavirus fears to just 1,000 people residing in Saudi Arabia in 2020. Last year, the Kingdom allowed 60,000 domestic participants, compared with the pre-pandemic number of 2.5 million.

Prospective Sri Lankan pilgrims have to file their applications with the Ministry of Religious Affairs by Friday.

“I have asked those interested to make the necessary applications to the department of Muslim Religious and Cultural Affairs on or before June 10,” said Ibrahim Sahib Ansar, director of the ministry’s department overseeing the logistics.

“There are 86 Hajj travel operators and some 15 reputed agents will be selected from them and the operations will be streamlined through them,” he added.

Source: Arab News

Plea to US embassy urging to investigate Rajapaksa’s assets

A group of citizens today held a protest outside the US Embassy in Colombo urging the US authorities to investigate the financial crimes committed allegedly by the Rajapaksa family.

The protesters said they informed the law makers in the US to investigate about their assets and property.

The protesters also claimed they did not belong to any organization or political party and that they only represent the public.

They alleged that there are reports that Rajapaksa’s had looted public money and urged the authorities to investigate them.

The protesters handed a plea to be handed over to the US ambassador Julie Chung urging to take steps to intervene and investigate the matter.

 

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China Reassures Sri Lanka After President Questions Commitment

China reassured Sri Lanka that it remains committed to helping the country resolve its financial difficulties, after President Gotabaya Rajapaksa said that Beijing appeared to be shifting its strategic focus elsewhere.

“South Asian countries, along with the other countries in our neighboring areas, are China’s priority in its diplomacy,” Foreign Ministry spokesman Zhao Lijian said Wednesday at a regular press briefing in Beijing. “China attaches great importance to forging closer good neighborly relations with its neighbors and has worked hard to this end.”

“As traditional friendly neighbors, China pays close attention to and feels for the difficulties and challenges facing Sri Lanka,” he added.

The comments come after Rajapaksa said China appeared to be shifting its strategic focus toward Southeast Asia and Africa, noting that South Asian countries in financial trouble aren’t getting the same attention from Beijing as before. Rajapaksa also said Sri Lanka couldn’t tap a $1.5 billion currency swap from Beijing and had yet to hear back on his request to President Xi Jinping for a $1 billion loan to buy essential goods.

“They have less interest in this region,” Rajapaksa said in an interview with Bloomberg News on Monday. “I don’t know whether I am right or wrong, even the focus on Pakistan has gone down. That shows that their interest here is not like earlier. Their interest has shifted to two other areas.”

China Shifting Focus to Southeast Asia, Sri Lanka President Says

Sri Lanka and Pakistan have been some of the biggest recipients of China’s largesse over the past decade, with Beijing extending billions of dollars in credit to build ports, power plants and other infrastructure. In recent months, however, Beijing has taken its time reissuing a loan to Pakistan and hesitated in responding to Sri Lanka’s request for fresh credit as the International Monetary Fund negotiates lending programs with both nations.

Zhao defended China’s actions, noting it had given emergency humanitarian assistance including rice and medicine. He also said Chinese financial institutions also reached out to Sri Lanka and “expressed their readiness to find a proper way to handle the matured debts related to China.”

“We hope Sri Lanka will work actively with China in a similar spirit and work out a feasible solution expeditiously,” Zhao added. “China is ready to work with relevant countries and international financial institutions to continue to play a positive role in supporting Sri Lanka’s response to current difficulties and efforts to ease debt burden and realize sustainable development.”

Bloomberg (Source)

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21 A: JVP proposes dissolution of Parliament within six months after enactment of new law

The JVP has said that the Parliament should be dissolved within six months after the enactment of the proposed 21st Amendment to the Constitution.

The JVP made some far reaching proposals as regards the proposed amendment. Its three-member parliamentary group has proposed that any MP who deserted his party under any circumstances should be immediately removed from the Parliament.

The JVP has said so in a letter to the Justice Ministry in response to Justice Minister Dr. Wijeyadasa Rajapajse’s request for political parties to make proposals in respect of the 21st Amendment to the Constitution.

JVP leader Anura Kumara Dissanayake told The Island that his party submitted its proposals in writing as it declined to participate in meetings chaired by Prime Minister Ranil Wickremesinghe to discuss constitutional proposals.

The JVP has proposed that the President shouldn’t hold any ministerial portfolio.

The following are the proposals pertaining to allocation of portfolios: (1) The Cabinet of Ministers should consists of 25 lawmakers (2) There should be 25 Deputy Ministers (3) There shouldn’t be State Ministers or any other positions created to accommodate members (4) The number of ministers/deputies cannot be increased in the event of a National Government (5) Ministerial portfolios and the assigned subjects should be included in the Constitution and (6) depending on requirement there should be provision for creation of new ministries.

The JVP proposed that the presidential pardon for a person sentenced for death, found guilty in terms of Public Property Act of 1982 No 12, sentenced on a bribery and corruption charges, rape, statutory rape and serious sexual offenses and those found guilty of misappropriation of public property, criminal misuse of power and criminal breach of trust should be subjected to parliamentary approval.

Members of the University Grants Commission (UGC) and Secretaries to Ministries should be appointed by the Constitutional Council.

As regards dual citizenship, the JVP has proposed in addition to members of Parliament, dual citizens cannot serve the Constitutional Council and independent commissions. The JVP has proposed that the Constitutional Council cannot appoint dual citizens to the positions it was constitutionally empowered to do.

The JVP recommended that the police and the CIABOC (Commission to Investigate Allegations of Bribery or Corruptions) should be empowered to initiate investigations into anyone required to make asset declaration or act on a complaint received from the public.

Except dual citizens, all should be eligible to contest parliamentary election until he or she reaches the age of 70.

Sri Lanka needs to find $ 6 billion to keep the country afloat this year: Ranil

PM says Colombo should find $3.3 bn for fuel, $900 mn for food for six months

Sri Lanka must find $6 billion to keep the country afloat for the next six months, Prime Minister Ranil Wickremesinghe said on Tuesday, as he outlined the government’s plans to combat an unprecedented economic crisis.

President Gotabaya Rajapaksa appointed Mr. Wickremesinghe as PM on May 12, days after Mahinda Rajapaksa resigned as PM amid mounting protests by citizens demanding that the ruling clan quit office. After assuming charge, Mr. Wickremesinghe asked citizens to brace for the “most difficult months” of their lives.

Breaking down Sri Lanka’s requirements for the coming months Mr. Wickremesinghe, addressing the Parliament on Tuesday, said the country must “somehow” find $3.3 billion for fuel, $250 million for gas, $900 million for food items for six months, and $600 million for fertilizer for a year. “In this context, we need $5 billion to ensure our daily lives are not disrupted for the next six months. We need to strengthen the rupee in line with the daily requirements of the citizens. Another $1 billion is needed to strengthen the rupee. That means we need to find $6 billion to keep the country afloat for the next six months,” he told the House.

The next three weeks would be a particularly difficult time for sourcing fuel, Mr. Wickremesinghe said, calling for “unity and patience” while facing the acute shortages.

Shining the spotlight on the looming food crisis, he said: “We will have to face serious difficulties and shortages in terms of our diets,” pointing to the impact of poor harvest on rice and other crops. Sri Lanka’s paddy production has fallen by half this year, consequent to President Gotabaya’s sudden ban on chemical fertilizer last year. The policy was reversed in about six months following farmer protests and widespread criticism, but has meanwhile severely impacted the crop, leaving the government in a tough spot where it must import more food while scrambling for dollars.

Further, Mr. Wickremesinghe pointed to a recent study by the World Food Program that found that 73% of the participating households had reduced their diet and food intake. “We will change that situation and strive to provide food without shortage as per this food security plan. We are working towards ensuring a three-meal situation in the country,” he said.

President Gotabaya has said Prime Minister Narendra Modi has assured swift supply of essential fertilizers to Sri Lanka. The Cabinet on Monday cleared a proposal to obtain a $ 55 million loan from the Exim Bank of India for the purpose. The PM has also sought help from China and Japan.

Source:THE HINDU

PM holds talks with IMF Managing Director Kristalina Georgieva

Prime Minister Ranil Wickremesinghe has held discussions with the Managing Director of the International Monetary Fund, Kristalina Georgieva, regarding the current economic situation in the country.

The Office of the Prime Minister said, during the discussion, Premier Wickremesinghe requested that the staff-level delegation from the IMF visit Sri Lanka as soon as possible so that the staff-level agreement could be finalised.

The Prime Minister has noted that the negotiations regarding bridging finance were reliant on Sri Lanka and the IMF concluding a staff-level agreement.

The PMO said the IMF Managing Director had expressed her willingness to support Sri Lanka during these difficult times.

Sri Lanka is currently holding talks with the IMF to obtain nearly USD 4 billion to address the short-term financial issues.

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Sri Lanka’s economic crisis threatens its dollar-earning IT firms -Aljazeera

Colombo, Sri Lanka–There have been days when cybersecurity professional Asela Waidyalankara and his colleagues have sat in hotel lobbies to complete projects during power outages. Other days, they have run around Colombo looking for fuel for generators so they could work from home.

“We have a buddy system at the company to inform each other about fuel availability,” laughs Waidyalankara, adding that his company encourages staff to carpool if they have to attend meetings in Colombo and work from home when possible.

Before the pandemic, Sri Lanka’s IT industry employed more than 120,000 people and was the fifth-largest export earner for the island nation of 22 million. It was on track to become the top exporter within the next five years and double its employees. But with the government of President Gotabaya Rajapaksa having defaulted on its foreign debt earlier this year and critical shortages crippling the economy, those plans are now in jeopardy as it becomes harder to maintain normal business operations.

Daily, hours-long power cuts are now normal. Fuel queues stretch for kilometres, sometimes so far that one fuel queue meets another. The country is running on a cash flow basis. “We are using whatever dollars that flow in to purchase the essentials we can,” Nandalal Weerasinghe, governor of the Central Bank of Sri Lanka (CBSL), said last month.

On May 19, the CBSL said it expects the economy to “record a setback” even as the cost of living continues to shoot up – May inflation was 39.1 percent, and fuel prices have more than doubled since the start of the year.

Steady power and smooth internet, essential for the IT industry to function effectively, are constantly affected. “We have weekly and monthly deliverables and we struggle to meet them sometimes,” Waidyalankara told Al Jazeera. “Our service levels are also affected, for example, we have to reply to a cybersecurity incident within two hours, but with power cuts and slow internet it is a challenge to meet these expectations,” he said.

Sri Lanka has several regional competitors in the IT sector, including India, Bangladesh and Vietnam. “We have spent years cultivating relationships with clients, so they are understanding, but there is always a fear that our business will be taken away and given to competitors if we cannot maintain our delivery and quality,” says Waidyalankara.

The ongoing economic crisis and the lack of a cohesive plan by the incumbent government to resolve it are starting to affect the confidence of foreign investors.

Sanjiva Weerawarana, founder and chief executive of WSO2, a Sri Lankan software company which raised $90m from Goldman Sachs in November, told Al Jazeera that his company has had to look for creative ways to hedge the country’s risk to appease investors. While WSO2 has offices in several countries, including the United States, the United Kingdom, Dubai and India, the company will “likely expand” its presence outside Sri Lanka to boost investor confidence and ensure business continuity, Weerawarana said.

Some companies have even set up temporary offices in neighbouring countries like India and Dubai and relocated some of their staff to these offices to maintain business continuity. “We are not going to relocate the company, but we temporarily relocated a few staff members to a Dubai office in April just to ensure business runs smoothly,” said Weerawarana.

Brain drain

The past few years in Sri Lanka have been troublesome. An unconstitutional 52-day government in October 2018 shook investor confidence and was followed a few months later by deadly bomb blasts on Easter Sunday in April 2019. And while migration, especially among highly skilled workers like software engineers, doctors and nurses is not uncommon, the economic conditions of the past year, on top of the turmoil before that, have increased the pace at which Sri Lankans seek greener pastures.

The ongoing economic crisis has made the cost of living exorbitant, especially as the value of the US dollar has appreciated by 75 percent against the Sri Lankan rupee in the past year. Owning a car or a house is a pipe dream and with their hopes crumbling around them, many young Sri Lankans are looking to migrate and get away from an uncertain future in their birth country.

A November 2021 survey report (PDF) by the Colombo-based Institute for Health Policy, an independent research centre, found that the number of Sri Lankans who want to migrate had doubled from three to five years ago and nearly 50 percent of the young and educated wanted to migrate now. Long queues at the passport office are just one indication of this.

A 35-year old software engineer who preferred not to be named moved to Australia with his family in March this year. “I didn’t really have any plans to migrate. I ran a small IT company, and I was happy with it,” he said. But a rise in ethnic and racial tensions in the country before the 2019 elections made him think about relocating and the subsequent economic mismanagement sealed his decision. “It’s really not promising in Sri Lanka. I want to prioritize my daughter’s future,” he said.

If Sri Lankan software companies can power some of the world’s largest stock markets like the London Stock Exchange and Borsa Italiana, and some of the world’s busiest airlines like Qantas, it is because of local talent. A brain drain would spell disaster for the sector.

“It’s our people who have helped us build world-class companies,” says Waidyalankara. “The real competitive edge for our industry comes from people, and unfortunately they are now beginning to move out of the country. It is a big loss.”

Weerawarana agrees. “We believe that 10 percent of our technically skilled and experienced staff have already applied for migration and another 20-40 percent are probably considering it,” he said.

The industry has also been important in other ways – it was one of the first to publicly support the wave of spontaneous protests held across Sri Lanka in March and April this year against the Rajapaksa government. Industry personnel even organized a rally to mark 50 days of protests since locals set up the ‘GotaGoGama’ site at the capital’s Galle Face Green promenade.

Pegged salaries

With its high salaries and flexible working environment, Sri Lanka’s IT industry has always had a better draw of talent than other important sectors like banking and tourism. To retain that talent now, industry players have had to devise newer ways.

Since the Sri Lankan rupee began plummeting, several IT companies which earn in foreign currencies have begun pegging the salaries of their local staff to either the US dollar, the pound sterling, the euro or the Australian dollar – making the industry an attractive employer for many locals.

This has had an unexpected effect on the smaller IT firms which cater to local clients and lack a large pipeline of foreign contracts and currencies. Unlike the larger companies, they are not able to peg the salaries of their staff to a foreign currency.

“Some of the key staff are considering migration or are moving into the larger companies who pay dollar-pegged salaries,” Deane Jayamanne, an owner of a small software company, told Al Jazeera. “On top of power cuts and internet problems, we also have to deal with this now,” he added.

The software engineer who migrated to Australia said that he did not think the IT industry in Sri Lanka had proper talent acquisition and retention policies. “When I applied for jobs to migrate [a year ago], I got two offers from Australia and the Netherlands. They took care of everything. The visa, air tickets, relocation expenses and even temporary housing. All I had to do was show up at the airport. That is how far they go to acquire talent.”

Where to from here?

Despite ambitious plans last year by Sri Lanka’s apex body for investment promotion in the country, the Board of Investment, to push the IT industry as a top earner and employer for the nation, the reality seems to be heading another way.

The situation is aggravated because there was already an existing supply gap in the industry. The Information and Communication Technology Agency, the government body responsible for ICT policy in the country, warned in a 2019 report that “the demand-supply gap for ICT workers is widening rather than closing”.

Even with dollar-pegged salaries and flexible work environments, a quick resolution to the ongoing economic crisis is what is needed to retain talent, employers say. It is also the key to ensuring a steady pipeline of foreign investors and clients. “Once we have charted a course for the country, I believe investor trouble will go down significantly,” said Weerawarana.

Experts worry that without that solution, the country “risks undermining its future growth”. Economist Malathy Knight, in an interview with Al Jazeera, pointed to Lebanon, which saw a significant exodus of local talent in the face of its own economic and political crisis. “Sri Lanka should learn from the experiences of other countries,” she said.

“It is vital to provide hope and opportunities to the youth”, Knight said, “without such efforts, Sri Lanka will continue to spiral downward economically and socially even after the economic crisis stabilizes.”