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Govt. steps up economic reforms and support for paddy farmers: Presidential advisor

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The government was taking steps to stabilise the economy and ensure fair conditions for paddy farmers, Senior Advisor to the President on Economic Affairs and Finance, Prof. Anil Jayantha Fernando, told The Island on Wednesday (06).

Addressing the challenges faced by the agricultural sector, Fernando noted that Sri Lanka’s rice market was dominated by a few major players. “The government has to make temporary interventions until the conditions for a competitive market are established,” Fernando said, adding, “We are already planning to purchase substantial amounts of paddy from farmers, in the next harvest season, to support them and prevent market manipulation.”

Prof. Fernando pointed out that the government has extended a fertiliser subsidy to paddy farmers, with the expectation that yields will improve in the coming seasons. He questioned the logic of leaving market conditions unchecked when a few large buyers acquire significant stocks, controlling prices at the expense of farmers. “Can we do nothing by saying this is how the invisible hand of the market operates?” he asked, stressing the need for government intervention to ensure farmers can at least recover production costs.

Addressing broader economic policies, Fernando asserted that the National People’s Power (NPP) government is steering the economy in the right direction, although he cautioned that visible results may take time. “When we took over, we recognised the economic challenges left by the previous administration. We identified key priority areas, though they may not always align with the public or media’s immediate concerns,” he said, adding that the focus remains on strengthening productive sectors and restoring price stability in the long run.

One significant challenge, according to Fernando, is rebuilding trust with both local and international investors. “We’ve made progress, but winning confidence back takes time,” he explained. Additionally, Fernando highlighted the lack of coordination among state agencies, which has hampered development efforts. In response, the government has appointed Dr. Hans Wijayasuriya, CEO of Axiata’s Telecommunications Business, as Chief Advisor to the President on Digital Economy. Wijayasuriya is tasked with creating common databases and a centralised platform to streamline efforts across sectors.

Regarding the country’s limited land resources, Fernando emphasised the need for scientific land management and criticised the stagnation in agricultural productivity over the past 40 years. National physical plans need to be updated, he argued, to ensure sustainable land use.

In response to allegations of money printing, Fernando clarified that the government is not engaged in this practice. He explained that what some media outlets refer to as “money printing” is actually a system through which the Central Bank temporarily provides funds to banks, which are returned within a day or a week. This mechanism is aimed at gradually lowering interest rates in the money market to stimulate the economy, he said. “This is not the same as the Central Bank buying Treasury bills and lending to the government. That practice has been completely halted.”

Explaining the rationale behind this approach, Fernando outlined how daily liquidity management supports the banking sector. “If the Central Bank doesn’t do this, the banking system might collapse,” he warned, noting that liquidity imbalances among banks require a regulatory solution to prevent systemic risk.

Fernando also addressed recent criticisms from opposition figures regarding fuel prices. He explained that Sri Lanka’s debt restructuring agreement with the International Monetary Fund (IMF) mandates an increase in government revenue to 15% of GDP by 2025. “Fuel taxes are essential for meeting this revenue target,” he said, adding, “If we can demonstrate to the IMF that we are on the right track, we may consider tax reductions in the future.”

In summary, Fernando outlined the government’s multi-pronged approach to stabilise the economy, support paddy farmers, and maintain fiscal discipline. However, he cautioned that the public might need to wait for significant improvements, as the NPP government’s policies are designed for long-term recovery rather than immediate relief. (RK)



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SC grants special leave to appeal against bribery conviction to ex-Deputy Minister

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The Supreme Court on Thursday granted special leave to appeal to former Deputy Minister Shantha Premaratne, who was sentenced to four years’ rigorous imprisonment for soliciting and accepting a Rs. 50,000 bribe in return for promising employment.

Premaratne, a former United People’s Freedom Alliance (UPFA) politician and Sri Lanka Freedom Party (SLFP) organiser in the Ampara District, was convicted by the High Court in 2017.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has alleged that Premaratne solicited and accepted money from a party supporter after promising to secure employment for her son-in-law at the CEB.

The Court of Appeal upheld the conviction on November 05, 2024, prompting Premaratne to challenge the ruling before the Supreme Court.

A three-judge bench, comprising Justices Achala Wengappuli, Arjuna Obeyesekere and Gihan Kulatunga, granted special leave to appeal to consider whether the charge in the indictment had been proved at the trial.

Premaratne has maintained that the Rs. 50,000 was a donation for the construction of a party headquarters and not a bribe offered in exchange for employment. He has also alleged that political rivals instigated complaints against him after he lost a party selection contest in June 2008.

The Supreme Court fixed the appeal for argument on March 29, 2027. Attorneys Hafeel Farisz, Prashan Wickramaratne and Sanjeewa Kodithuwakku appeared for Premaratne, while Additional Director General Ruvini Wickramasinghe represented the CIABOC.

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Police probe alleged links between cops and cricketer’s brother

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Police probe alleged links between officers and cricketer’s brother

Police Headquarters has launched a separate investigation into allegations that several police officers maintained close links with a national cricketer’s brother who is being investigated over alleged connections to organised crime and narcotics trafficking.

The move comes amid growing questions over the delay in arresting the 37-year-old suspect, despite earlier indications by investigators that arrangements were underway to take him into custody.

Police sources said the inquiry would determine whether the officers had assisted the suspect, known as ‘Ratmalane Sangu’, and members of his alleged criminal network, or interfered with ongoing investigations.

There are also allegations that some officers may have destroyed, concealed or caused the loss of evidence that could have helped investigators establish the suspect’s alleged involvement in criminal activities.

Investigators are examining whether any material was deliberately removed or concealed and whether police officers attempted to obstruct or derail investigations into the suspect and his associates.

Meanwhile, investigators have obtained an audio recording of an alleged conversation between the suspect and underworld figure Russell Smith, in which the two are said to discuss firearms-related deals.

The recording is being examined to establish the identities of the speakers, its authenticity and the context of the conversation. Investigators have yet to publicly establish the precise nature of any transactions discussed in the recording.

The suspect, a resident of Mount Lavinia, has previously served prison sentences for violent offences. Investigators are examining his alleged links to several major narcotics traffickers and underworld figures operating locally and overseas.

They are also probing information concerning his alleged role in the movement and distribution of heroin, methamphetamine, cannabis and hashish, as well as possible money-laundering activities.

Police are investigating information linking the suspect to the killing of 57-year-old Jathunga Priyantha near the Ratmalana Airport Junction on August 1.

According to police sources, the inquiry is proceeding on two fronts: establishing the suspect’s alleged involvement in organised criminal activities and determining whether police officers helped him or his associates evade detection or frustrate investigations.

The separate inquiry into the alleged police links is expected to examine communications and financial dealings between the officers, the suspect and his associates, as well as evidence of possible interference in earlier investigations.

Police Headquarters sources said investigators were also reviewing previous evidence and information to determine whether any material had been compromised or deliberately removed.

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Record 1,600 students take Russian Classical Ballet examination in Sri Lanka

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More than 1,600 students sat this year’s Russian Classical Ballet Examination, the largest number ever to take part in the examination in Sri Lanka. Exams were held in Colombo from 5, to 18, October and in Galle on 10 October.

Students aged four and above came from across the island, including Colombo, Galle, Gampaha, Negombo, Matara, Kelaniya, Panadura, Wattala, Kiribathgoda, Ratnapura, Kandy, Kurunegala, Bandarawela and Badulla. They are taught by 15 dedicated teachers trained in the Vaganova method, the renowned Russian system of classical ballet training.

They were examined by  Dr. Oxana Karnovich of the Moscow State Academy of Choreography,  a distinguished academic and curator.

The Russian School of Ballet and Dancing was established in 2001 by  Michael Ustinov, Buddhapriya Ramanayake and Mrs Chandi Aluvihare, with Mrs Galina Pleshakova as its founding instructor. Today the School is led by Director Madam Maria Popova, Counsellor of the Embassy of the Russian Federation in Sri Lanka.

 

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