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MR asks Ranil to suspend privatisation projects

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Mahinda Rajapaksa Ranil Wickremesinghe

SLPP leader Mahinda Rajapaksa, MP, has asked President Ranil Wickremesinghe to suspend ongoing privatisation projects, pending the conclusion of the presidential polls scheduled for Sept/Oct this year.

Former President Rajapaksa has said in a media statement: “The present government is an interim arrangement formed to run the country for the remainder of former President Gotabaya Rajapaksa’s term. Even the pro-privatisation lobby should realise that the hasty divestiture of state-owned assets at a time like this will not produce the best outcome for the country. Furthermore, the next Presidential Election is only a few months away.

Hence, as a measure to ease the widespread discontent over the government’s divestiture drive, I wish to propose that all moves to sell off stateowned assets or enterprises be postponed until a new government is formed after the next Presidential Election. The new government will then be able to deal with state-owned properties and enterprises  in accordance with the mandate they obtain at the election.”

Full text of the statement:

“The government’s plans to sell off certain national assets and state owned enterprises have given rise to discontent among trade unions, political parties and the general public. The present divestiture drive is ostensibly aimed at minimizing govt. expenditure on loss-making state-owned enterprises and meeting certain IMF conditions in that regard. I ruled the country for more than nine years, from November 2005 to January 2015, without ever selling a single state-owned enterprise. In fact, my government actually re-acquired some state-owned enterprises, such as the Insurance Corporation, and Lanka Hospitals, that had been sold off by previous governments, and these enterprises continue to make profits for the state to date.

My government had a pragmatic approach towards state-owned assets and enterprises. If a state-owned enterprise was making profits and providing a good service to the public, we saw no reason to privatize it. At times, a government may take a strategic decision to manage the prices of certain goods or services produced by state-owned enterprises for the overall benefit of the economy or to help low-income earners. The energy sector is a good example of this. There is no government in the world that does not subsidise certain earmarked economic activities.

During my tenure as President, even if some state-owned enterprises made losses due to a government decision to manage prices, our management of the economy resulted in an unbroken nine-year economic boom. We had no difficulty in paying off our debts or meeting the costs of the subsidies we maintained and nobody even spoke of privatisation when I was President. Since the divestiture of certain sectors can have far reaching consequences for the country, especially when foreign parties are involved, this is an issue that has to be approached with caution.

As was resolved at the SLPP May Day rally, any restructuring of state-owned enterprises should take place with maximum transparency, according to a national plan, in a manner consistent with national security and in consultation with the employees.

Having said that, I wish to stress that the trade union sector, for its part, should take a more nuanced approach towards private sector participation in state-owned enterprises. Going by the dictionary definition of privatisation, any involvement of the private sector in the ownership structure or the control of a state-owned asset or enterprise can be characterized as privatisation. However, trade unions should not oppose every attempt to obtain foreign or private sector investment in a government owned enterprise. A pragmatic and non-dogmatic approach to such matters is required.

If there are unutilized government properties or underperforming government enterprises, it makes sense to obtain private sector participation to turn such enterprises around. If a profitable state-owned enterprise needs further investment to add a new feature which cannot be financed by the government, it makes sense to award a share of that enterprise to a private investor in exchange for the investment. If an investor is willing to build a new enterprise from scratch, it makes sense to award shares in that enterprise to the investor so that a new state asset comes into being.

Some political parties have an ideology driven, dogmatic approach to privatization and seeks to privatize anything and everything that can be privatized. Many trade unions also have a similarly dogmatic attitude and tend to oppose any involvement of the private sector in state-owned enterprises. Both these extremes are harmful to the country. Trade unions should regard proposals to obtain private or foreign participation in a state-owned enterprise on a case by case basis and look at the overall benefit of such collaboration to the country.

The only real way national assets and strategically important state-owned enterprises can be safeguarded is by having a government that takes a pragmatic and non-dogmatic approach to such matters. This is why it is important to take note of the fact that when I ruled the country for more than nine years, the economy flourished and there was not even a discussion on the subject of privatisation.”



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Govt. to initiate talks on setting up Truth Commission: FM Herath

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Herath

UNHRC Session in Geneva:

The JVP/NPP government has expressed its willingness, at the UNHRC in Geneva to initiate talks on setting up a Truth and Reconciliation Commission to investigate acts of violence caused by racism and religious extremism,

Addressing the High-Level Segment of the 58th Regular Session of the United Nations Human Rights Council (UNHRC) in Geneva, Foreign Minister Vijitha Herath said: “The contours of a truth and reconciliation framework, will be further discussed with the broadest possible cross section of stakeholders, before operationalisation to ensure a process that has the trust of all Sri Lankans. Our aim is to make the domestic mechanisms credible and sound within the constitutional framework. This will include strengthening the work towards a truth and reconciliation commission empowered to investigate acts of violence caused by racism and religious extremism that give rise to tensions within Sri Lankan society.”

“The Government has pledged to take tangible steps in the interest of further advancing national unity and reconciliation. The President has proposed to declare a Sri Lanka Day, in line with our vision for a reconciled Sri Lanka and commitment to bridging gaps between communities. We will ensure that the domestic mechanisms and processes, established to address challenges emanating from the conflict, will continue their work in an independent and credible manner, within the Constitutional framework. Domestic institutions, such as the Office on Missing Persons (OMP), Office for Reparations, and Office for National Unity and Reconciliation (ONUR), will be strengthened,” he said.

Minister Herath reaffirmed Sri Lanka’s commitment to human rights, reconciliation, and sustainable development, highlighting the country’s progress and government’s strategies for continued engagement with the international community.

The government is firmly and sincerely committed to working towards a unified Sri Lanka that respects and celebrates the diversity of its people with no division or discrimination based on race, religion, class and caste. We will not leave room for a resurgence of divisive racism or religious extremism in our country. The fundamental and long standing principles of democracy and freedom enshrined in our Constitution will be fully respected and safeguarded while protecting the human rights of all citizens. Every citizen should feel free to practice their religion, speak their language, and live according to their cultural values without fear or discrimination. No one should feel that their beliefs, culture, or political affiliations will make them targets of undue pressure or prejudice. Administrative, political and electoral processes will be activated towards this end.

A number of confidence building measures have also been taken in the last few months towards reconciliation. In November 2024, a number of roads in the Northern Province, including the Palali-Achchuveli main road, were opened for public use, after several decades. The President, during his visit to the North in January this year, made an open invitation to Tamil-speaking youth to be part of Sri Lanka’s police service. The 2025 Budget includes significant allocations to upgrade the libraries throughout the country, including the historical Jaffna library which is a symbol of education and enlightenment for the Tamil community, he said.

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Indonesia to support Clean Sri Lanka initiative

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Indonesian Ambassador Dewi Gustina Tobing called on President Anura Kumara Dissanayake on Tuesday

Indonesia has pledged support for Clean Sri Lanka programme, the President’s Media Division said.

The assistance in this regard was assured by Indonesian Ambassador Dewi Gustina Tobing when she called on President Anura Kumara Dissanayake at the Presidential Secretariat on Tuesday, the PMD said.

During the discussion, Ambassador Tobing extended Indonesia’s well wishes to the new government and reaffirmed Indonesia’s commitment to strengthening the 70-year-long friendship between the two nations. She said that Indonesia’s current administration would support the Clean Sri Lanka programme, noting that measures have been taken to implement a similar initiative in Indonesia.

The discussions also focused on establishing vibrant trade agreements and free trade arrangements between the two nations. Additionally, both parties explored opportunities to expand markets in a mutually beneficial manner while further strengthening economic, social and cultural ties. Senior Additional Secretary to the President, Roshan Gamage and Indonesian Deputy Ambassador, Fiki Oktanio, were also present at the meeting, the release said.

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First batch of vehicles imported for private use, since 2020, arrives 

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The first batch of vehicles imported for private use arrived at the Colombo Port on Tuesday (25) afternoon, following the government’s decision to end a five-year suspension on vehicle imports to conserve meagre foreign reserves.

Speaking to journalists in Colombo on Wednesday morning, Vehicle Importers’ Association of Sri Lanka (VIASL) President Prasad Manage said the first shipment arrived from Thailand, and another shipment from Japan is scheduled to arrive at the Hambantota International Port on Thursday (27).

The Sri Lankan government officially lifted the temporary ban on vehicle imports, which had been in place since early 2020, on January 31, 2025.

One of the primary reasons for lifting the suspension is to boost state revenue and meet the tax target of 15 percent of gross domestic product, a requirement under Sri Lanka’s bailout agreement with the International Monetary Fund (IMF).

 During his recent Budget speech in Parliament, Sri Lankan President Anura Kumara Dissanayake said the liberalization of motor vehicle imports is expected to generate a significant portion of the government’s revenue targets.

 However, he emphasized that vehicle imports will be closely monitored to prevent any adverse effects on the country’s external sector stability.

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