Basil plans to meet IMF/WB officials before the Spring Meetings

Finance Minister Basil Rajapaksa is scheduled to leave for the United States in the second week of April to commence the Balance of Payments (BoP) discussions with top officials of the International Monetary Fund (IMF), World Bank (WB) and US Treasury officials, as exclusively reported by Ceylon FT on 23 February.

A top Finance Ministry official told Ceylon FT, the Lankan delegation is scheduled to leave on 10 or 11 April for this high-level meeting before the Spring Meetings of the WB Group and the IMF scheduled for 22 to 24 April in Washington DC.

Sources revealed, the Sri Lankan Ambassador to Washington Mahinda Samarasinghe is making the necessary arrangements to fix the dates and times for the said meetings. However, independent economic commentators say that there are number of issues that need to be addressed before embarking on any BoP support programme with the IMF. They emphasise the urgent need to understand the parameters within which the existing unmanageable External Debt Stock could be restructured.

According to the IMF Debt Sustainability Analysts (DSA), SL’s Debt dynamics are in a very critical stage. Therefore, it cannot seek IMF support without introducing a viable Debt Restructuring mechanism.

Based on the recently concluded Article IV Consultation team of DSA, SL has a high risk of debt distress, with debt burden indicators well above the relevant thresholds in the baseline and all the stress scenarios. Accordingly, international tenders should be called for internationally recognised consultants/managers to implement this Debt Restructuring programme.

Thus, the world’s leading debt restructuring specialists, Rothschild and Co and Lazard Ltd have already focused their attention on SL.

According to sources familiar with the subject, they have recently met government officials and discussed potential plans to help the nation raise funds, including asset sales and securitised debt facilities.

Thereafter, the Debt Restructuring programme would take the course of implementation with the technical assistance of the IMF, usually a timeline of about six months before its actual implementation based on a binding agreement with the IMF for the BoP assistance programme. Accordingly, the Government would have to focus on ‘bridging finance options’ to meet the dollar demand during this transit period.

SL is eligible for IMF support under the four-year Extended Fund Facility (EFF), possibly about US$ 2 billion at an interest rate of less than 2 per cent.

An IMF programme would assist in Debt Restructuring under the Paris Club and secure new facilities from the World Bank and enable re-entry into global capital markets.

There is a reasonable probability of achieving debt sustainability, removing import controls without facing a costly restructuring of commercial loans, economists said.

Foreign Minister Peiris meets UN High Commissioner for Human Rights

Sri Lanka’s Minister of Foreign Affairs Professor G.L. Peiris today held wide ranging discussions with the United Nations High Commissioner for Human Rights, Michelle Bachelet at her office in the Palaise des Nations in Geneva.

He was accompanied by Minister of Justice, Ali Sabry, State Minister of Production, Supply and Regulation of Pharmaceuticals, Prof. Channa Jayasumana and Secretary to the Ministry of Foreign Affairs, Admiral Jayanath Colombage.

Foreign Minister Prof. Peiris is leading the Sri Lanka Delegation to the 49th Session of the UN Human Rights Council in Geneva.

During the visit, the Foreign Minister is slated to address the High Level Segment of the 49th Session of the Council and thereafter speak at the Interactive Dialogue on Sri Lanka.

The Foreign Minister is also scheduled to have meetings with other dignitaries during his visit, the Ministry of Foreign Affairs said.

Prof. G.L. Peiris had met with the delegations of Pakistan, Palestine, South Africa, Saudi Arabia and Egypt on March 01, 2022.

He held talks with the Foreign Minister of Palestine, Rizad Al Maliki, Federal Minister for Human Rights of Pakistan, Shireen M Mazari, Minister of International Relations of South Africa, Dr. Naledi Pandor and the Vice Minister of Foreign Affairs, Human Rights and Humanitarian Affairs of Egypt, Khaled El Bakry.

Sri Lanka abstains from UN resolution against Russia

The United Nations General Assembly (UNGA) voted overwhelmingly to condemn Russia’s invasion of Ukraine “in the strongest terms”, although Sri Lanka was among the countries that abstained from voting.

Titled “Aggression against Ukraine”, the resolution demanded an immediate halt to the offensive and the withdrawal of all Russian troops. It was backed by 141 of the assembly’s 193 members, with five votes against the resolution and 35 abstentions.

It prompted a standing ovation among delegates who supported the resolution, with Assembly President Abdulla Shahid struggling to read out the result over the long, loud applause which filled the New York chamber.

In asking delegates to vote against the resolution, Russian Ambassador to the UN Vasily Nebenzya said Western countries were putting “unprecedented pressure” on other countries to pass it.

“This document will not allow us to end military activities,” he said.

“On the contrary, it could embolden Kyiv radicals and nationalists to continue to determine the policy of their country at any price, holding peaceful civilians hostage, but not in the figurative sense of the term, but in the literal sense of it.”

This resolution was passed after a rare General Assembly emergency special session was called on Monday (28 February), with proceedings kicking off on Tuesday (1) and continuing on into Wednesday (2).

It’s the first time such a session has been called in decades; the last emergency session was in 1997 during the Israeli-Palestinian conflict.

The UN’s website says those meetings are called when, because of a lack of unanimity of the permanent members, the UN’s Security Council fails to “….exercise its primary responsibility for the maintenance of international peace and security in any case where there appears to be a threat to the peace, breach of the peace, or act of aggression”.

As one of the five permanent members of the Security Council, Russia has a special power called the “right to veto”, which means if it votes against a resolution, it won’t be approved. China, France, the UK, and the US also have these powers.

There are also 10 elected committed members who serve two-year, non-consecutive terms – they get a vote, but can’t veto decisions.

Last Friday (25 February), Russia used its voting powers to block a Security Council resolution demanding that it stop attacking Ukraine and withdraw troops immediately.

The result of last week’s vote was 11-1, with China, India, and the UAE abstaining.

Russia’s veto prompted other delegations to call for the emergency session, which does not allow any vetoing.

Russia held the presidency of the committee for the month of February, but the UAE took over the chair on Tuesday.

India, Ireland, Kenya, Mexico, and Norway will be on the committee until the end of the year, with Albania, Brazil, Gabon, Ghana, and the UAE to remain until the end of 2023.

Unlike a Security Council resolution, a General Assembly resolution does not have the potential to become legally binding. As the UN puts it, they’re “considered to be recommendations”.

However, it does have strong symbolic value and reflects international opinion. UN Secretary General António Guterres said the resolution sent a message “loud and clear” to Russia.

“End hostilities in Ukraine now. Silence the guns now,” he said. “Open the door to dialogue and diplomacy now. The territorial integrity and sovereignty of Ukraine must be respected in line with the UN Charter. We don’t have a moment to lose.”

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Wimal and Gammanpila removed from minister posts

Ministers Wimal Weerawansa and Udaya Gammanpila have been removed from their respective ministerial portfolios by President Gotabaya Rajapaksa.

The President’s Media Division said that under the powers vested in him by the Constitution, the President has removed the two MPs from their Cabinet minister posts with effect from this evening (03).

This was followed by the reshuffling of several ministerial positions.

Gamini Lokuge was sworn in as the Minister of Energy while Pavithra Wanniarachchi was sworn in as the Minister of Power before the President this evening at the Presidential Secretariat, the PMD said.

Secretary to the President Gamni Senarath was also present on this occasion.

Meanwhile SLPP Member of Parliament S.B. Dissanayake has been sworn in as the new Minister of Industries, the position held by MP Wimal Weerawansa.

PHU leader Udaya Gammanpila has served as the Minister of Energy while NFF leader Wimal Weerawansa served as Minister of Industries.

It was reported earlier today that the President has decided to reshuffle several key Cabinet positions.

Minister Gamini Lokuge had confirmed that he was sworn in as the new Minister of Energy, the position previously held by MP Udaya Gammanpila.

The minister revealed this while speaking to reporters outside the Presidential Secretariat in Colombo his evening, following the sudden Cabinet reshuffle.

Minister Lokuge also said that Pavithra Wanniarachchi, who was serving as the Transport Minister, was sworn in as the new Minister of Power, the post previously held by him.

Chinese envoy meets Sri Lanka leader, discusses Belt and Road projects

Chinese Ambassador to Sri Lanka Qi Zhenhong met Sri Lankan President Gotabaya Rajapaksa on Monday and discussed bilateral and diplomatic relations including Belt and Road projects, the Chinese embassy in Colombo said.

The meeting comes weeks after India pledged to assist Sri Lanka with much needed financial assistance including a 400 million US dollar swap arrangement, a 500 million US dollar credit line to purchase fuel with, and a 1 billion US dollar credit line to buy essential foods and medicines.

Both Sri Lanka and China are celebrating the 65th anniversary of diplomatic relations as well as the 70th anniversary of the historic rubber-rice pact signed between the two countries.

“Zhenhong emphasised that the biggest inspiration from the 65th anniversary of the establishment of diplomatic relations between China and Sri Lanka is that no matter how the domestic and international situation changes in Sri Lanka in the past, present or future, China will always be Sri Lanka’s most trustworthy good friend, true friend and old friend (sp),” the Chinese embassy said in a statement.

“The current world situation is changing rapidly, and the spirit of the rubber-rice pact of ‘independence, self-reliance, unity and mutual support’ is even more significant today, 70 years later. At the new historical starting point, China is willing to join hands with Sri Lanka to make unremitting efforts to improve the quality and upgrade of bilateral relations.”

According to the statement, the two sides also conducted friendly and in-depth exchanges on topics such as economic, trade and financial cooperation between the two countries, major “Belt and Road” projects, and regional cooperation.

Sri Lanka has been in the middle of a geopolitical tussle between China, the US and India, analysts say.

China has invested in and loaned billions of dollars for Sri Lanka’s post-war infrastructure and also owns the country’s largest port in the southern district of Hambantota and reclaimed land worth 1.5 billion US dollars next to the island nation’s main port in Colombo.

The Chinese embassy statement further said President Rajapaksa discussed Sri Lanka’s current economic and financial situation and thanked China for its long-term and firm support for Sri Lanka’s national development. The president said he looked forward to further strengthening cooperation with China to bring more benefits to the two nations.

The president’s office confirmed the meeting with the Chinese Ambassador but did not reveal any details.

Sri Lanka is facing a financial and dollar crisis with the country running out dollars to buy fuel, essential foods, and gas.

Lack of fuel imports due to the dollar shortage has already resulted in extended power cuts and long queues for fuel.

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Wimal launches scathing attack on Basil

Cabinet Minister Wimal Weerawansa today launched a scathing attack on Finance Minister Basil Rajapaksa over the way he is handling the economy.

Weerawansa noted that despite the economic crisis in the country, the Finance Minister has not had direct talks with the Governor of the Central Bank for six months.

The Minister was speaking at an event held today where 11 political parties came together to issue a policy statement to address the national issue.

Weerawansa noted that the Governor of the Central Bank, Ajith Nivard Cabraal had said that he had written nine times to the Finance Minister on the economic issue but did not receive a response.

Ajith Nivard Cabraal had also reportedly made some proposals but did not receive a single response.

The Minister also said that when there is a need for major intervention in the issue, the Finance Minister had proposed appointing sub-committees to have talks with a number of countries to seek financial assistance.

Weerawansa suspected that the Finance Minister is letting things get worse with a sinister agenda.

He also accused the Finance Minister of dealing with black money in Sri Lanka.

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UN experts call on Sri Lanka government for immediate moratorium on PTA and reform of counter-terrorism law

UN human rights experts* have called for an immediate moratorium on the use of Sri Lanka’s Prevention of Terrorism Act (PTA), and urged the Government to substantively review and revise the legislation to comply with international human rights law.

“There is a grave risk to the rights and liberties of people who may be detained arbitrarily, especially religious and ethnic minorities, and the use of the law may curtail political dissent with no effective due process guarantees,” the experts said. “An immediate moratorium on the use of the PTA is required until the necessary amendments can be made.”

The Sri Lankan Government has committed to reforming the PTA as part of its negotiation for trade-related assistance from the European Union. On 10 February 2022, a bill to amend the PTA was presented to the Sri Lankan Parliament. The experts said the revisions fell short of their recommendations, as well as those expressed by the Office of the High Commissioner for Human Rights and other mechanisms.

The PTA has been used for over 40 years to enable prolonged arbitrary detention, extract false confessions through torture, and target minority communities and political dissidents in Sri Lanka. Its application may also enable the commission of enforced disappearances. Suspects detained pursuant to the PTA have been held for decades without charge.

The experts acknowledged that the proposed reduction of the period of pre-trial detention, an increase of magistrates’ powers to visit places of detention and the speeding up of trials were welcome changes to the PTA. However, they expressed regret that the PTA Amendment Bill did not comply fully with Sri Lanka’s international human rights obligations, according to a statement issued by the OHCHR.

“The current proposals leave intact some of the most egregious provisions of the PTA, which have led to alleged human rights violations, including arbitrary detention, torture and enforced disappearances,” the experts said. “The actions of the Sri Lankan Government call into question its commitment to reform. Sri Lanka has an immediate obligation to put forth solutions to address the human rights violations carried out under the PTA.”

In a recent letter to the Sri Lankan Government as well as in the May 2020 country visit report of the Special Rapporteur on the rights to freedom of peaceful assembly and of association, the experts identified key amendments to ensure the PTA is compliant with international law obligations, including:

1. Employ definitions of terrorism that comply with international norms;
2. Ensure precision and legal certainty, especially when this legislation may impact the rights of freedom of expression, opinion, association and religion or belief;
3. Institute provisions and measures to prevent and prohibit arbitrary deprivation of liberty;
4. Ensure the enforcement of measures to prevent torture and enforced disappearance and adhere to their absolute prohibition and non-derogable prohibition; and
5. Enable overarching due process and fair trial guarantees, including judicial oversight and access to legal counsel.

The experts also urged Sri Lanka to adopt counter-terrorism legislation that is fully compliant with international human rights standards as it negotiates a trade deal with the EU. “The EU should stress that the government, as a good faith gesture, implements an immediate moratorium on the use of the PTA and release all those unjustly jailed under this abusive law,” said the experts.

*The experts: Fionnuala Ní Aoláin, Special Rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism and Clément Voule, Special Rapporteur on the rights to freedom of peaceful assembly and of association; Luciano Hazan (Chair-Rapporteur), Aua Baldé (Vice-Chair), Tae-Ung Baik, Gabriella Citroni, Henrikas Mickevičius, Working Group on Enforced or Involuntary Disappearances; Elina Steinerte (Chair-Rapporteur), Miriam Estrada-Castillo (Vice-Chair), Leigh Toomey, Mumba Malila, and Priya Gopalan, Working Group on arbitrary detention; Fernand de Varennes, Special Rapporteur on minority issues; Fabián Salvioli, Special Rapporteur on the promotion of truth, justice, reparation and guarantees of non-recurrence; Ahmed Shaheed, Special Rapporteur on freedom of religion or belief, and Nils Melzer, Special Rapporteur on torture and other cruel, inhuman or degrading treatment or punishment.

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11 parties of Government launch separate national manifesto

A total of 11 political parties representing the Sri Lanka Podujana Peramuna (SLPP)-led Government launched a new national statement yesterday (2), with over 30 government MPs, including a number of cabinet ministers and state ministers, attending the launch event held in Sri Jayawardenepura Kotte.

The manifesto, titled “Mulu Ratama Hari Magata” (the entire country towards the right path), was launched by the Sri Lanka Freedom Party (SLFP), the National Freedom Front (NFF), the Democratic Left Front (DLF), the Lanka Sama Samaja Party (LSSP), the Communist Party of Sri Lanka, the National Congress, the Pivithuru Hela Urumaya (PHU), the Sri Lanka People’s Party, the Vijaya Dharani National Council (NC), the People’s United Front, and the Yuthukama National Organisation.

Among the proposals included in the said manifesto were, increasing foreign exchange earnings and reserves; penetration of the foreign employment market by employing skilled workers and professionals; making a complete revival of the tourism industry based on indigenous medical treatments; introducing a National Policy and Targeted Action Plan that includes a long-term generation plan to address the power crisis; ensuring public confidence in the prevention of tax evasion, frauds in government revenue collection, and poor financial management as well as frauds through re-export rackets, and taking appropriate action on issues that are hotly debated among the public; appointment of a Presidential Commission to look into all tax scams, including sugar and coconut oil scams; providing relief to the poor from import taxes, serving justice to the victims of the Easter Sunday terror attacks; eliminating religious extremism and ensuring national unity; strengthening local food production,;ensuring food security in the country and protecting the living standards of farmers, fishermen, and small producers; establishment of farmer-centred economic centres to replace the so-called purchasing centres dominated by wholesalers; reconstruction of nearly 33,000 small tanks and annicuts and associated ecosystems throughout the country; resumption of local seed planting material research and production using farming systems owned by the Department of Agriculture; restarting the Agrarian Bank and relieving the farmer from the debt burden, payment of fertiliser subsidy to the farmer in cash; strengthening the local industrial system; starting important industries at the selected national level and not just waiting for foreign investors to come; supporting the small producer who is mired in microfinance, especially women, thereby utilising their contribution to economic development; expanding opportunities for young people seeking to leave the country to pursue vocational and technical education locally; ensuring social justice in the current crisis and protecting low-income and socio-economically disadvantaged people; protecting the consumer by cracking down on racketeering; providing care and relief to those working abroad; managing the long-standing geopolitical crisis in the Indo-Pacific region; reaffirming national security; strengthening public confidence in the State and making the most of local resources; calling war heroes to economic war; harvesting the fullest from marine and mineral resources; identifying the root causes of corruption in the State and preventing corruption; and considering proper financial management as a precondition not only for the economic development but also for the prevention of corruption and fraud.

The event was attended by SLFP Chairman and incumbent Government Parliamentarian Maithripala Sirisena, NFF Leader and Industries Minister Wimal Weerawansa, DLF Leader and Water Supply Minister Vasudeva Nanayakkara, LSSP Leader and SLPP National List Member of Parliament (MP) Prof. Tissa Vitarana, NC Leader A.L.M. Athaullah, PHU Leader and Energy Minister Udaya Gammanpila, Sri Lanka People’s Party Leader and Government MP Asanka Navaratna, and Government MPs Ven. Aturaliye Rathana Thera and Gevindu Cumaratunga.

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Cardinal meets Bachelet for Easter attacks justice

Colombo Archbishop His Eminence Malcolm Cardinal Ranjith, who is currently in Geneva, Switzerland, had met UN High Commissioner for Human Rights Michelle Bachelet, and discussed about revealing the truth behind the Easter Sunday terror attacks and bringing justice to the victims, the Catholic church said yesterday.

The Archbishop, who met with Catholic Church Head His Holiness Pope Francis at the Vatican on 28 February, met Bachelet in Geneva, official sources at the Catholic church told The Morning yesterday. The duo had talked for around 45 minutes and had discussed about revealing the truth behind the Easter Sunday terror attacks and bringing justice to the victims.

“As we have informed earlier, we have tried all possible options to reveal the truth behind the Easter Sunday attacks and failing that, we have gone to the international community to request help from them to reveal the truth. Therefore, as a first step, the Archbishop met with the Pope and told him all about the attacks. He requested him to mediate in order to get the truth revealed. As a second step, the Archbishop met Bachelet and held discussions on revealing the truth behind the 2019 terror attacks and bringing justice to the victims,” Colombo Archdiocese Auxiliary Bishop Rev. J.D. Anthony said in a statement issued in this regard yesterday.

The 49th regular session of the UN Human Rights Council is currently ongoing, with a report on Sri Lanka due tomorrow.

In her written update about Sri Lanka last month, Bachelet has urged the Government of Sri Lanka (GoSL) to publish the findings of the Presidential Commission of Inquiry (PCoI) into the 2019 Easter Sunday bombings in order to “ensure transparency for the victims and to pursue further independent investigations into the involvement of any other state or non-state actors”.

When the Archbishop met the Pope, the discussions were focused on the Sri Lankan Catholic people’s struggle for justice, following the Easter Sunday terror attacks.

“We have exhausted all options within Sri Lanka to find justice. Now, we are discussing all avenues through which we can find justice internationally. Our last remaining solution was to seek assistance from the international community. This is not because we do not love our country. The Archbishop is meeting the Pope after two years and he is especially focusing on informing him that we need help from the international community to seek justice for the victims of the Easter Sunday terror attacks,” National Catholic Social Communication Centre Director Rev. Cyril Gamini Fernando said at a press conference held on 28 February.

Archbishop Ranjith said last month that they were currently exploring the possibility of reaching out to the international community, including the UN, to seek justice for the said terror attacks. In an online meeting held recently, the Archbishop pointed out that they, as the Catholic church, have links all over the world, and that they would also try to influence some pertinent and powerful countries that are in contact with the church. In addition, he said that in case they would be reaching out to the international community, such efforts would also be supported by his fellow cardinals around the world.

Two Japan Maritime Self-Defense Force ships arrive in Colombo

Sri Lanka Navy, in accordance with naval traditions, welcomed two Japanese naval ships arrived at the Port of Colombo this week.

Japan Maritime Self-Defense Force (JMSDF) ships JS URAGA and JS HIRADO which belong to the Minesweeper Division One arrived at the port of Colombo on a formal visit on 01st and 02nd March 2022 respectively.

The Minesweeper Division One to which both these ships belong is commanded by Captain NOGUCHI Yasushi.

Meanwhile, the 141m long Minesweeper Tender JS URAGA is commanded by Commander KONDO Koji and the ship is manned by a crew of 130. The Minesweeper Ocean JS HIRADO is a 67m long ship where 55 crew members serve under the command of Lieutenant Commander ITO Akira, the ship’s Commanding Officer.

Before their arrival at the port of Colombo, the duo of JMSDF ships conducted a successful naval exercise with the Sri Lanka Navy Ship (SLNS) Sindurala off Colombo on 28th February. Among the exercises worked off, Divisional Tactics (DIVTACS), Maneuvering Exercises and Photo Exercise (PHOTOEX) were chief, the Navy said.

The proceedings of the visit of the ships will be conducted adhering to COVID-19 protocols owing to the pandemic concerns. The ships are scheduled to depart the island on 03rd March.