The Supreme Court has directed the Attorney General to instruct the Commissioner General of Prisons and the Superintendent of Prisons in Anuradhapura to ensure the safety of the eight prisoners who have filed a Fundamental Rights petition against State Minister Lohan Ratwatte.

The Supreme Court has also directed the Attorney General to instruct the Commissioner General of Prisons and the Superintendent of Prisons of Anuradhapura to provide the necessary access for their lawyers to meet the relevant prisoners.

The SC made the order after considering the FR petition filed by eight suspects detained at the Anuradhapura Prison by their lawyer alleging that Lohan Ratwatte had entered the Anuradhapura Prison and threatened a detainee with a pistol.

The petitions were filed today before Chief Justice Jayantha Jayasuriya, Murdu Fernando and S. The case was taken up before a three-judge bench comprising Justices Thurairajah.

The petitioner further requests that an order be issued to release him on bail and finally release him from all charges.

Sri Lanka Tuesday reported 40 deaths due to COVID-19 after the figures were confirmed by the Director General of Health Services on Monday, October 04.

Among the deaths reported today, 22 are of males and 18 of females. The majority of deaths – 36- are of elderly people in the 60 years and above age group.

According to the data reported by the Government Information Department, the total deaths due to Covid-19 since the pandemic began last year has now risen to 13,142.

Sri Lanka has printed 106.7 billion rupees to fully sterilize liquidity shortages that emerged in the banking system in September from a statutory reserve hike and foreign reserve losses, data show.

On October 04, the central bank’s Treasury bills tock rose to 1,442.7 billion rupees from 1,336 billion rupees.

The central bank withdrew about 150 billion rupees from the banking system through a statutory reserve ratio hike on September 01 and subsequently also intervened in forex markets to lose foreign reserves.

From August 30, 227.6 billion rupees had been printed through outright purchase of Treasury bills and bonds and another 103.5 billion rupees was printed through a term reverse repo auction.

Sri Lanka’s newly re-appointed central bank Governor Nivard Cabraal had lifted a ceiling on yields which had led to failed bond and bill auctions and allowed rates to go up limiting money printing.

Sri Lanka has been printing large volumes of money and also buying bonds into its balance sheet, in a severe deterioration of rule based policy seen under ‘flexible’ inflation targeting and ‘flexible exchange rate’ since 2015.

The central bank jettisoned a ‘bills only’ and started buying up bonds into its balance sheet with printed money even taxes were raised and then started buying bonds from failed auctions, which is against section 112 of its Constitution.

“Provided, however, that except in the case of treasury Bills, for which the Central Bank may make direct tenders, the bank shall
not subscribe to any issue of such securities or agree to purchase the unsubscribed portion of any such issue,” the MLA says.

Sri Lanka’s MLA is however a has enough provisions according which can be used to print money trigger forex shortages destroy the currency, though originally the intention was that there would be no direct government financing except through the 180 day provisional advances.

Until money printing began after the setting up of the central bank, Sri Lanka had an East Asia style currency board which had kept the currency stable through two World Wars and a Great Depression.

While excessively large liquidity shortages may not be required analysts say, higher rates and some liquidity shortages are required to stop a complete collapse of the rupee.

However foreign exchange shortages persists and the latest injection had reduced a liquidity short to 9 billion rupees.

Sri Lanka’s forex reserves are low and the central bank is seeing reserve liabilities rise.

On Monday bond markets continued to limp back seeing some activity as more realistic rates are emerging.

A one year bond maturing on 01.10.2022 was quoted 7.40/8.00 percent.

A 15.11.2023 bond was quoted at 8.20/30 and also traded, dealers said.

A 15.09.2024 bond was quoted at 9.00/20 percent.

A 01.12.2024 bond was quoted at 9.00/30 percent.

A 01.08.2025 bond was quoted at 9.50/75 percent

A 15.10.2027 bond was quoted at 10.25/50 percent.

While explaining that all 100 oil tanks in Trincomalee have already been handed over to India based on Indo Lanka agreements signed in 1987 and 2003, Minister of Energy Udaya Gammanpila stated that the Government’s focus is to reacquire these tanks.

He made these statements at a press conference held today (04).

Gammanpila also dismissed allegations leveled against him which claimed that he, together with the Indian Foreign Secretary, visited the tanks.

“A certain Opposition Parliamentary showed a photograph of a helicopter claiming it was myself and the Indian Foreign Secretary travelling to Trincomalee. I wish to responsibly state that I have not travelled in a helicopter with anyone since I was appointed as the Minister,” he said.

He also added that the Foreign Secretary has not even requested a discussion with him.

“According to information from India, my subject will not be a matter which will be discussed,” Gammanpila explained.

Meanwhile, in response to Ven. Dr Omalpe Sobitha Thero claims which suggest that this is an attempt to give away 85 oil tanks to India, Gammanpila stated that the country does not have that many tanks to give away.

“We do not possess 85 tanks to give away. I want remind him that the UNP has already done that,” he said.