The coronavirus death toll in Sri Lanka increased to 11,431 today after another 135 deaths were reported.

The Ministry of Health said that the 135 deaths had occurred yesterday and were confirmed today.

The latest victims included 109 people aged 60 and above and 26 people between the ages of 30-59.

Chief Opposition Whip and SJB Kandy District MP Lakshman Kiriella yesterday said that no one was happy with the way the government was investigating the Easter Sunday terror attacks.

Addressing the media at the Opposition Leader’s office in Colombo, Kiriella said that there was nothing wrong with Colombo Archbishop Malcolm Cardinal Ranjith contemplating going before the international community against the way the government was carrying out investigations into the Easter Sunday carnage.

“The Cardinal, the victims and we, in the Opposition, are calling for only one thing – that is the government should implement the recommendations of the Presidential Commission of Inquiry on the Easter Sunday carnage. The government should implement the recommendations of the final report of the presidential commission on the Easter Sunday attacks. Several international conferences are due to discuss resolutions against Sri Lanka. The current session of the UN Human Rights Council Geneva got underway yesterday (12) and the UN General Assembly sessions will be held in New York on Sept. 21. The results of these forums would be detrimental to our national interests if the government keeps bungling in this manner.

“It is incumbent Prime Minister Mahinda Rajapaksa the one who internationalised Sri Lanka’s domestic issues in 1989. He went before the Geneva Human Rights Council with a list of names of disappeared persons. Since then this has become the norm for anyone who is not happy with the actions of any government to prevent human rights violations to go there. The UN Human Rights Council is at the disposal of any person or organisation that has exhausted all means in this country to get justice done. Even other countries could complain to that Council if they think Sri Lanka does not comply with human rights conventions that it has become a party to. So, there is nothing wrong with the Cardinal taking the issue of the Easter Sunday carnage to Geneva because the government is not dispensing justice.”

The Chief Opposition Whip said that people had been waiting for two and half years to see the government taking action against those who are responsible for the Easter Sunday terror attacks. “The Cardinal’s complaint is that justice has not been served. There is a serious allegation that justice is served selectively. It prosecutes only those who are opposed to the government. When legal action is taken against anyone in the government’s good books, the prosecution fails or makes errors in the judicial process so that the judges have no option but to give their rulings in favour of the culprits. A judge has to make his or her decision on the basis of evidence placed before him or her. When the prosecution fails deliberately to provide evidence, then justice is not done. So, the government could act against those who are opposed to them while safeguarding their friends.”

SJB MP Eran Wickremaratne also addressed the press.

The 48th session of the United Nations Human Rights Council is set to commence in Geneva tomorrow (13).

The High Commissioner for Human Rights’ oral report on Sri Lanka will be presented tomorrow as well.

The 48th session of the United Nations Human Rights Council will be held in Geneva, Switzerland from 13 September until 08 October.

The UN High Commissioner for Human Rights Michelle Bachelet will be presenting the oral report on the progress made by Sri Lanka after a resolution on accountability of Sri Lanka for reconciliation and the promotion of human rights was passed at the previous session of the Human Rights Council last year.

The Epidemiology Unit of the Health Ministry reported that 620 more people were tested positive for COVID-19 in Sri Lanka today (Sep. 12), moving the daily total of new cases to 2,642.

According to the Government Information Department, 2,641 of them have been associated with the New Year Cluster and the remaining one was identified as returnees from overseas.

This brings the tally of coronavirus infections confirmed in the country to 485,922.

Official data showed that more than 61,800 active cases are currently under medical care at hospitals, treatment centres and homes.

Total recoveries from the virus infection reached 412,812 earlier today as 1,579 more patients were discharged from medical care upon returning to health.

Meanwhile, Sri Lanka registered 144 new COVID-related fatalities confirmed by the Director-General of Health Services on Sep. 11. The new development pushed the official death toll from the virus outbreak in Sri Lanka to 11,296.

A flurry of decisions this week by the Central Bank (CB) on the use of foreign exchange and further restricting imports have rattled the money markets and triggered concerns of shortages in some imported food items, mobile phones and household appliances.

On Tuesday, the CB issued a directive to banks to stick to the CB’s daily rate of Rs.202-203 per dollar and desist from the bank-to-bank rate of Rs.210-220 which has depreciated the rupee sharply – with the move leading to confusion and exporters holding onto their dollars. Adding to the problems, the CB on Thursday introduced measures to curb imports by enforcing a 100 percent cash deposit margin on importers when opening LCs.

“This could lead to shortages as it’s difficult to provide a cash deposit against letters of credit,” one importer said. The CB also directed banks not to advance money to importers to meet the cash deposit margin. Other importers said that small importers cannot afford to block their money in LC margins and they would have to stop imports or resort to smuggling.

The total import cost of the items under the new regulations was US$871 million in 2020 and $1 billion in 2019. The import cost of these items from January to July 2021 was $753 million, Finance Ministry data showed.

The uncertainty came as former CB Governor and current State Minister for Finance Ajith Nivard Cabraal prepared to take over as the Governor, his third term in office, on September 16. Informed sources said that a Cabinet paper providing him cabinet rank status was likely to be presented at Monday’s Cabinet meeting. Prof. W.D. Lakshman at a news briefing on Friday at 3 pm announced that he was stepping down from September 14.

The changes at the CB comes after which analysts said were a series of bad decisions which culminated in a last-ditch attempt to saving dollar reserves when the Governor admonished the banks to maintain the US dollar exchange at a certain rate. In the meantime, the commercial banks planned to meet the Governor (if Mr. Cabraal has already been appointed) next week seeking a revocation of the ‘arm-twisting’ directive.

Tuesday’s move created an impasse in transactions between banks and importers with banks refusing to honour their letters of credit, a banker said. The banks have requested delayed payments from importers slapping a currency exchange risk on the latter further aggravating their issues. Money market dealers said import bills were being largely financed through remittances by migrant workers.

Banking sources said that two banks are following the CB request, but others have adopted a wait-and-see approach. However foreign banks are not heeding the regulator’s request, they said. “According to the governance structure, foreign banks cannot oblige ‘letters’ sent by anyone except if it binds them legally. So, they are not adhering to the Governor’s request,” a source told the Business Times. This will bring about a cartel situation for foreign banks, he said noting that this needs to be addressed as soon as possible,

There is a fair amount of private sector commercial transactions pending, a second banker noted. “There are unsettled oil bills, engine payments of large aircrafts and large food imports need to be settled.”

Adding to the problems a West Asian manufacturer exporting large food items to Sri Lanka through a government importer has refused to transact on credit in the future. “This manufacturer based in West Asia has told the government importer that goods will be shipped solely on cash and not on credit,” an importer in the industry said. He added that most intermediary goods like fabric, packaging, industrial chemicals, clinker for cement etc are delayed affecting some of the exports as well.

Meanwhile, export proceeds of a few million dollars are sitting in government banks without the exporters converting them into rupees, a third banker told the Business Times. Banks are fuming as they stand to lose Rs. 100 to 200 million a month if they buy and sell dollars at the CB stipulated rate.

The biggest dilemma facing the banks is honouring the already committed LCs. “A central bank has to give us a payment plan without which we have no option but to default payment,” a fourth banker pointed out. This will further bring down the credit rating in the country. Economists say that on the one side there is a food crisis and a fiscal crisis on the other – both creating a black market in the months to come. “A lot of under-invoicing will happen by exporters if the CB forces banks to maintain the dollar at the ceiling of Rs. 203,” an economist said.

Items affected by the import restrictions include mobile phones and fixed phones, home appliances such as fans, TVs, refrigerators, washing machines and digital cameras, clothing and accessories, household and furniture items, air conditioners, fruits such as fresh apples, grapes and oranges, cosmetics and toiletries, beverages such as beer and wine, other food and beverages such as cereal preparations, starches, chocolates, cheese and butter, and other non-food consumables such as musical instruments, tobacco products, toys and stationery.