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China’s factory output improves, offering hope of easing economic slowdown

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China's industrial output grew 4.5% in August from a year earlier, accelerating from the 3.7% pace seen in July

China’s factories picked up their pace and retail sales also gained momentum in August, according to government data, suggesting the economy may be gradually recovering from its post-pandemic malaise.

However, despite busy activity in restaurants and stores, the figures released on Friday showed continuing weakness in the all-important property sector, where real estate developers are struggling to repay heavy loads of debt in a time of slack demand.

Investment in real estate fell 8.8 percent in August from the year before. The decline has been worsening since the beginning of the year.

Acting to relieve the burden on banks, the People’s Bank of China, or central bank, announced late on Thursday that the reserve requirement for most lenders would be cut by 0.25 percentage points as of Friday

That would free up more money for lending, “in order to consolidate the foundation for economic recovery and maintain reasonable and sufficient liquidity,” the central bank said.

Friday’s report showed retail sales rose 4.6 percent in August from a year earlier, with auto sales climbing 5.1 percent. Retail sales rose a meagre 2.5 percent in July.

Consumers grew more cautious about spending in the past year, even as China loosened stringent policies to contain outbreaks of COVID-19.

“Overall, in August, major indicators improved marginally, the national economy recovered, high-quality development was solidly advanced, and positive factors accumulated,” Fu Linghui, spokesperson for the National Bureau of Statistics, told reporters.

But Fu added that there were “still many external factors of instability and uncertainty” and that domestic demand remains weak, so that “the foundation for economic recovery still needs to be consolidated”.

The trends in August were somewhat better than expected, Julian Evans-Pritchard of Capital Economics said in a report.

“Fiscal support shored up investment but the real bright spot was a healthy pick-up in consumer spending, suggesting that households may be turning slightly less cautious,” he said.

China’s economy expanded by 0.8 percent in the three months ending in June compared with the previous quarter, down from 2.2 percent in January-March. That is equivalent to a 3.2 percent annual rate, which would be among the weakest pace in decades.



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Prison officers urge Justice Minister to protect their colleague who opened fire

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Coffins of prison staff killed in Monday's clashes at the Negombo Prison, placed at Prison headquarters, Welikada (pic by Nishan S. Priyantha)

Prison officers yesterday requested Justice and National Integration Minister Harshana Nanayakkara to protect their colleague who opened fire at the Negombo Prison during Monday’s riot.

They made that request when the Minister visited the Welikada Prison to pay his last respects to seven officers killed by inmates during the clashes. Soon thereafter, the National Hospital reported that another prison officer had succumbed to his injuries.

The Minister was told that the officer had opened fire through a small opening in the main door to prevent the rioting prisoners from escaping.

The Opposition has demanded to know who ordered the prisons officer to fire. The concerned officer’s colleagues told the Minister that had a breakout occurred the inmates would have posed a serious threat to the public.

Altogether, authorities transferred 1,033 inmates from Negombo to other prisons. Among them was Katuwellegama Suresh, who is alleged to have spearheaded Sunday’s attack on a group of prisoners that led to the following day’s clashes.

Executive Director of the Committee for Protecting the Rights of Prisons, Attorney-at-Law Senaka Perera told The Island that some of the transferred inmates had been mercilessly assaulted in other prisons.

Sources familiar with the situation at prisons said that they were able to accommodate between 11,000 to 12,000 inmates but over 40,000, both convicted and suspects were held in the country’s prisons. About 30,000 of them are suspects. Due to severe overcrowding, prison management had been compelled to accommodate both the convicts and suspects at the Negombo Remand Prison, sources said, adding that the clashes had erupted between the two groups.

Those who had been convicted were accused by the other group of passing information to the previous prison management resulting in elimination of narcotics and other banned items in the prison, sources said. They went on the offensive after both the administrator and the second-in-command were transferred separately and the authorities ignored the volatile situation and proceeded with routine work on Monday.

Sources said that the authorities were yet to release the exact number of convicts and suspects killed and wounded during clashes between the two groups and with prison staff. According to the Health and Media Ministry the total number of persons admitted to the National Hospital, following the incidents, were 29. Of them, 14 were inmates. The Ministry said that of the 29, 12 were in the intensive care unit.

Prof. Prathiba Mahanamahewa told The Island that the overcrowding of prisons should be carefully examined, taking into consideration that even some innocent people were held in various prisons. Poisons, Opium and Dangerous Drugs (Amendment) Act of No 41 of 2022 was being exploited and misused by law enforcement authorities to frame and arrest people. In terms of this law, those who had been framed couldn’t secure bail from the High Court but had to seek the intervention of the Court of Appeal. The lawyer explained how Section 54 of the Act was being used indiscriminately against people.

According to Mahanamahewa about 80 percent of those suspects held were on narcotic charges.

By Shamindra Ferdinando

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Negombo Prison riot: Ensuring protection of prisoners fundamental responsibility of the state – UN

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Marc-André Franche

Expressing concern over the death of prisoners, both convicts and suspects, as well as correctional officers, the United Nations Resident Coordinator in Sri Lanka, Marc-André Franche has emphasised that ensuring that protection is a fundamental responsibility of the State.

Twenty prisoners and seven correctional officers were killed in clashes on Sunday and Monday. Over 100 received injuries.

Issuing a statement, the United Nations extended its condolences to the families affected by the tragedy and wished a speedy recovery to those injured.

Underscoring prison officials carried out challenging duties in service of the State, and the general public, the UN Resident Coordinator said that their loss was deeply felt. The UN also stressed that inmates who died, or were injured, were under the care and protection of the State, emphasising that both correctional officers and prisoners require greater protection. Ensuring that protection is a fundamental responsibility of the State, he said.

The UN statement highlighted the urgent need for continued investment and reform within Sri Lanka’s prison system.

It pointed to longstanding challenges, including overcrowding, outdated practices and poor conditions in detention facilities, which remain concerns in prison systems both in Sri Lanka and globally.

The UN said Sri Lanka’s engagement with international human rights standards, relating to the treatment, safety and wellbeing of persons deprived of liberty, provides an important framework for addressing these issues.

The United Nations welcomed the establishment of an independent committee to investigate the circumstances surrounding the prison violence and emphasised that the committee’s findings should lead to concrete and lasting improvements in detention conditions.

The UN also reaffirmed its commitment to supporting Sri Lanka through technical cooperation aimed at improving prison security, strengthening detention conditions, and supporting the welfare of correctional personnel.

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Govt. considers banning or restricting social media for children under 16: PM

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Harini Amarasuriya

The government was considering imposing restrictions or a possible ban on social media access for children under 16, Prime Minister Harini Amarasuriya told Parliament yesterday (8).

Responding to a question raised by SJB Gampaha District MP Harshana Rajakaruna, the Prime Minister said discussions with relevant stakeholders were currently underway to assess the impact of social media use on children and explore measures to ensure their safety.

She said the consultations, led by the Ministry of Women and Child Affairs, were focussed on the social, mental and health effects of excessive social media use, digital security concerns and global developments in regulating online platforms.

The Prime Minister said the National Child Protection Authority and the National Childcare and Protection Society were also engaged in discussions on the proposal, while steps were being taken to draft national guidelines on restricting access to social media platforms for children below 16 years.

She added that awareness programmes would also be introduced to safeguard children’s mental and physical wellbeing in an increasingly digital environment.

According to the Prime Minister, several government institutions, including the Ministries of Women and Child Affairs, Education, Higher Education and Vocational Education, Health, Mass Media and Digital Economy, along with the Sri Lanka Police, Department of Probation and Child Care Services and the National Child Protection Authority, were collaborating on the initiative.

The PM said the government, together with World Vision, was implementing a programme aimed at addressing mobile phone addiction among children under 18, which had already shown positive results.

Prime Minister Amarasuriya said the government’s focus was to strike a balance between protecting children from potential online harms and ensuring they benefit from digital opportunities.

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