News
IMF diagnostic on Lanka damning verdict – Harsha
In a scathing indictment of Sri Lanka’s governance landscape, the International Monetary Fund (IMF) had handed down a damning verdict, Samagi Jana Balawegaya (SJB) MP Harsha de Silva told Parliament on Wednesday.
Discussing the contents of the IMF’s Governance Diagnostic Assessment report, he said that the IMF’s verdict was clear: corruption had eaten into all state institutions from top to bottom.
MP de Silva said that one of the main reasons for the delay in disbursing the second tranche of IMF funds was the shortfall in government revenue as well as the sluggish progress in foreign debt restructuring. However, perhaps the most significant roadblock to financial recovery lies in the government’s persistent failure to address its deep-rooted problem of corruption, he said.
The SJB MP urged the Sri Lankan government to swallow the bitter medicine it so desperately needs. With a history of approaching the IMF for assistance a staggering 16 times without lasting success, Sri Lanka now had to adopt comprehensive reforms. The government must seize the opportunity to eliminate corruption and pave the way for a meaningful change, Dr. de Silva said.
The IMF has laid out a rigorous 16-point plan, a blueprint for Sri Lanka’s revival. Those directives, while formidable in scope, were essential steps towards transparency and accountability, the MP said.
They include establishing an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Dr. de Silva said: “This committee will ensure that the nominations for key anti-corruption positions are not influenced by political interests, which is a critical step in tackling corruption.”
Another IMF recommendation is publishing asset declarations for senior officials by July 2024, an act that brings much-needed transparency, with only 12 out of 225 MPs having disclosed their assets.
“This move will shed light on potential conflicts of interest among top government officials, promoting accountability and integrity,” said Dr. de Silva.
The following are among the IMF recommendations: Enacting Crime legislation by April 2024 to align with international standards, combating money laundering and illicit financial activities, amending the National Audit Act to hold officials accountable for the use of public resources, finalising and implementing regulations for beneficial ownership information and creating a public registry by April 2024, publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition, requiring the publication of all public procurement contracts above LK 1 billion and other critical financial information on a designated website, implementing the State-Owned Enterprise Reform Policy to ensure ethical management, abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating proposals is established, and enacting a Public Procurement Law by December 2024, addressing the alarming procurement and corruption issues.
Harsha de Silva said: “It is quite evident the failure in procurement and corruption with the mess that’s going on in the Ministry of Health with emergency procurement but yet no action was taken. If one may recall what happened at COPF not too long ago, when a tax holiday was given to one company for 17 years, I asked only one question: What is the benefit or revenue generated to the government? But they were unable to answer that; they removed me as the Chair of the COPF. Now, the IMF has made it mandatory to reveal the cost of such tax holidays.”
MP de Silva said Sri Lankan citizens were struggling to make ends meet while corruption remained unchecked. Professionals were fleeing the country; public trust in the government was eroding and that the IMF’s intervention was not a burden but a blessing.
“The ball is now in the court of Ranil Wickremesinghe and his SLPP government. Opposition to these measures is not an option, as they represent the only viable path forward. The IMF’s directives are a lifeline, an opportunity for Sri Lanka to cleanse its system, regain trust, and pave the way for a brighter future,” Dr. de Silva said.
News
Fuel crunch looms
Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies
by Saman Indrajith and Norman Palihawadane
The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).
Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.
The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.
The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.
“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.
Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.
The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.
The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.
“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.
He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,
along with President Anura Kumara Dissanayake.
Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.
He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.
The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.
The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.
News
Gnansara Thera to be assigned to prison printing section: Officials
by Norman Palihawadane
Bodu Bala Sena General Secretary Ven. Galagodaatte Gnanasara Thera, who has been ordered by the court to serve the remainder of his prison sentence, is to be assigned to the prison ‘printing work party’, prison officials said yesterday.
The monk was produced before the Colombo High Court yesterday by prison officials in connection with a warrant issued by the court.
He appeared before the court in civilian attire.
Prison sources said arrangements were being finalised for his detention and that he would subsequently be assigned to the printing work party.
The Thera initially objected when prison officials instructed him to change from his robes into the attire worn by convicted prisoners.
He later agreed to wear the prescribed prison clothes, sources said.
The Supreme Court, in September, annulled the presidential pardon granted to Gnanasara Thera in 2019. He had been serving a six-year prison sentence imposed following his conviction for contempt of court but had served only about nine months when then President Maithripala Sirisena granted him a presidential pardon in May 2019.
Following the Supreme Court ruling, the Thera was required to serve the remainder of his sentence. He was subsequently reported missing, prompting the Court of Appeal to issue an open warrant for his arrest.
The Court of Appeal on Monday ordered the authorities to enforce the remainder of his prison sentence.
News
Speaker rejects Ajith Perera’s privilege complaint
Speaker Dr. Jagath Wickramaratne yesterday ruled that a privilege complaint submitted by SJB Kalutara District MP Ajith P. Perera did not constitute a prima facie breach of parliamentary privilege.
The ruling was made in response to a notice of privilege submitted by Perera on October 02.
Perera alleged that his parliamentary privileges had been breached over the failure to take formal action or reach a final decision on a written request submitted on August 03 by 18 Opposition MPs seeking the appointment of a Special Select Committee to investigate delays in the judicial system and prison overcrowding.
He had also requested that the matter be referred to the Committee on Ethics and Privileges for investigation and recommendations.
In his ruling, Speaker Wickramaratne said the Speaker, as the Presiding Authority and guardian of the powers, rights and privileges of Parliament, could not be subjected to a privilege complaint or disciplinary inquiry by a committee subordinate to the Chair in respect of actions taken in an official capacity.
He said that, under the Standing Orders, the Speaker was required to independently determine whether a prima facie case of breach of privilege existed.
Referring a complaint against the Speaker to a committee functioning under the Speaker’s authority would, therefore, create a procedural contradiction, he said.
Accordingly, the Speaker ruled that Perera’s notice did not constitute a prima facie breach of parliamentary privilege and disallowed the request to refer the matter to the Committee on Ethics and Privileges.
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