News
USD 56.5 bn parked overseas: Govt. must deal with errant exporters firmly – Justice Minister

By Shamindra Ferdinando
Justice Minister Dr. Wijeyadasa Rajapakshe, PC, has said the Foreign Exchange Act No 12 of 2017, enacted during the Yahapalana administration was meant to facilitate the operations of those who exploited the system for their benefit.
The new Act had repealed the Exchange Control Act of 1953, Dr. Rajapakshe said, adding that the Yahapalana move contributed to the deterioration of the economy. He explained how, as a member of the Yahapalana parliamentary group, he had to abide by the decision to vote for the new Foreign Exchange Act No 12 of 2017.
The Justice Minister said so at a hastily arranged media briefing at his Ministry near Technical Junction on Tuesday, when The Island sought his explanation why the Yahapalana government had repealed the time-tested Exchange Control Act of 1953 and what made him vote for the new law.
Altogether 94 MPs, including Dr. Harsha de Silva and Eran Wickremaratne – two of the strongest critics of the Rajapaksa government – voted for the new law. Eighteen MPs voted against the Bill whereas the rest skipped the vote taken on July 25, 2017.
Referring to official statistics, Dr. Rajapakshe said that export proceeds amounting to a staggering USD 56.5 bn were in offshore accounts and invested overseas. Acknowledging that those funds hadn’t been earned through illegal means, the Justice Minister said that the country suffered due to such valuable foreign exchange not being remitted. According to him, the USD 56.5 bn included approximately USD 3 bn that hadn’t been remitted last year as the country struggled amidst rapid deterioration of the national economy.
The Minister said that the actual figure could be definitely more than this.
Responding to another query raised by The Island, Dr. Rajapakshe said that the situation was so bad the government had to deal with the exporters cautiously as the country was not in a position to upset them under any circumstances. The Minister said that the Central Bank and the Finance Ministry were in the process of addressing this issue and efforts were being made to introduce a new Act.
Former External Affairs Minister Prof. G. L. Peiris on Monday (Oct 30) emphasized the urgent need to take remedial measures in this regard. The rebel SLPP MP said that this could be part of the overall government response to overcome the continuing financial crisis.
President Gotabaya Rajapaksa’s government also caused irrevocable setbacks by doing away with a range of taxes immediately after the last presidential poll on wrong advice. Declaring that the move deprived the Treasury of Rs 600-700 bn, Dr. Rajapakshe said that no one really knew the losses caused by sudden ban on agro chemicals. Perhaps the losses could be much more than the losses suffered due to the abolition of a slew of taxes.
Dr. Rajapakshe recalled punitive measures taken during the Sirimavo Bandaranaike’s administration to deal with foreign exchange frauds.
However, the deterioration of the national economy began in 2006 as the powers that be adopted corrupt and disastrous measures, Dr. Rajapakshe said, pointing out that the situation in the UPFA government compelled him to quit his ministerial portfolio.
Dr. Rajapakshe said that though some tend to question the importance of parliamentary watchdog committees, during his tenure as the Chairman of COPE the country benefited immensely as a result of action taken on COPE reports.
The former President of the Bar Association said that the Supreme Court had reversed the move to sell Lanka Marine Services (LMS) Ltd to John Keells and a controversial deal on Sri Lanka Ports Authority land. The Justice Minister mentioned several other cases, including the saving of the highly profitable Sri Lanka Insurance Corporation (SLIC) from privatization.
News
Indian warship builder eyes 51% stake in Colombo Dockyard: FSP

The Frontline Socialist Party (FSP) has urged the NPP government to prevent Japan’s Onomichi Dockyard Company from selling its 51% ownership stake in the Colombo Dockyard Limited (CDL) to Indian government-owned Mazagon Dock Shipbuilders Limited, Mumbai, a leading shipbuilder.
FSP spokesman Pubudu Jayagoda told The Island yesterday (27) that the move seemed to be in line with the overall India-Sri Lanka understanding on the basis of the recently signed memorandum on defence cooperation.
Against the backdrop of deteriorating financial situation, the Japanese company has informed the board of directors of CDL of its plans to divest its 51 percent ownership stake in the international shipbuilding and repair company. The Japanese shipbuilder made the announcement in early Dec last year.
Alleging that an agreement has been reached on the sale of Onomichi’s controlling ownership stake to the Indian ship builder, Jayagoda questioned
the move as Mazagon primarily built a range of warships and attack submarines. Jayagoda pointed out that according to Mazagon’s profile, the Indian government-owned business undertaking was involved with European companies engaged in ship and submarine construction.
Addressing a Local Government election meeting at Weeraketiya, Pallekanda, in support of those contesting the May 6 election on the ticket of Jana Aragala Sandhanaya (JAS), the executive committee member of JAS Jayagoda emphasized that in terms of the agreement between Sri Lanka and Japan, Onomichi couldn’t sell its stake without the Sri Lankan government’s approval. Therefore, the NPP government should intervene to halt the Japanese-Indian move, the FSP spokesman said while urging the parliamentary opposition to publicly oppose the planned sale of the Japanese stake.
Among other stakeholders are Sri Lanka Insurance, Sri Lanka Ports Authority and EPF.
By Shamindra Ferdinando
News
Govt. turned holy event into a mess: Kiriella

Former SJB MP Lakshman Kiriella has said the JVP/NPP government totally mishandled the Siri Dalada Vandana relic exposition and now Kandy is reeking of waste.
Kiriella said the government’s lack of planning and experience in organising large-scale national events had led to serious public health concerns in both the city and its suburbs.
“They invited the public to Kandy even without ensuring that at least adequate sanitary facilities would be available. Now, the streets are strewn with heaps of garbage, human waste, polythene bags, and even bottles of urine. People are increasingly worried that this could trigger a disease outbreak.
“The government failed in every aspect of planning. It should have learnt from how former Presidents Ranasinghe Premadasa and Mahinda Rajapaksa handled similar expositions,” Kiriella said. “Those leaders began preparations three months ahead of the events.
They held at least 15 planning meetings, inviting MPs from both the government and Opposition to ensure proper coordination.”
Kiriella said that under past administrations, more than 10 ministries worked in unison to provide infrastructure and support for the event. “The Health Ministry ensured a steady water supply, the Housing Ministry provided tents and huts, and the Ministry of Tourism handled food and refreshments,” he recalled.
“The current government did none of this. What should have been a spiritual and well-organised national event was turned into a nightmare,” Kiriella said.
News
COPE to submit reports to Parliament immediately after concluding probes

Chairman of the Parliamentary watchdog committee COPE (Committee on Public Enterprises), Dr. Nishantha Samaraweera, says the COPE has decided to submit its reports progressively immediately after the conclusion of each probe. Previously, reports were submitted only after the conclusion of investigations into several institutions. That decision had been made due to the slow implementation of
the COPE Committee recommendations regarding irregularities and corruption revealed during investigations.The report of the investigation into the Medicines Regulatory Authority has been tabled in Parliament, and a debate is scheduled soon.Dr Samaraweera said that recommendations based on the investigation would be forwarded to the Attorney General to take legal action against those involved in corruption and fraud.He added that the COPE would also submit extracts of the reports to the CID.
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