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SL Political parties unable to comprehend rapidly changing global economy – CP

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Dr. Weerasinghe

General Secretary of Communist Party Dr. G. Weerasinghe has alleged that major political parties in Sri Lanka are either clueless or silent about the far reaching changes in the global economy. He has found fault with the ruling NPP for its failure to renegotiate the agreement with the IMF in spite of repeatedly pledging to do so in the run-up to presidential and parliamentary polls last year.

The following is the text of the statement issued by Dr. Weerasinghe: On 2 April 2025, US President Donald Trump declared ‘Liberation Day’ as he unleashed a wave of protectionist tariffs. These tariffs have hit some of the poorest countries in the world, including a 44% tariff on Sri Lanka.

Since Sri Lanka’s leaders have made the economy overly dependent on the US, these tariffs will affect the country and its workforce badly. Around 23% of Sri Lanka exports go to the US. Around 38% of Sri Lanka’s biggest export, apparel and garments, goes to the US. Therefore, the 350,000 workers directly employed in this sector will face uncertainty, loss of income, and unemployment.

While such protectionism should have been anticipated by the present government, no amount of negotiating could have changed the tariff rate as it is based on an irrational formula devised by the Trump administration. The US will use these tariffs in order to extract economic and political concessions from the country. All progressive forces must remain vigilant about this.

The only solution is to break from away from economic dependence on the US market, invest in domestic industrial capacity, and contribute to building a new international economic order with the Global South.

Trump’s so-called ‘reciprocal tariffs’ have to be understood in the context of historic transformations happening in the world economy. The balance of economic power is shifting decisively toward the Global South, with China and BRICS at the vanguard of this transformation.

China overtook Japan to become the second largest world economy in 2010. In 2014, it surpassed the US economy in terms of GDP purchasing power parity. It now contributes around 32% of manufacturing output and leads in high-tech sectors such as new energy.

The 2008 financial crisis signalled the weakness of the US-led neoliberal order. This led to the formation of BRICS in 2009, which has now expanded to 10 member states and 9 partner states that together comprise more than 29% of world GDP and 54% of the world population. China responded to the crisis through investment stimulus in the form of the Belt and Road Initiative.

Faced with this reality, the US ruling class have been increasingly unable to rule in the old way, engaging in hybrid wars and unilateral coercive measures. The Biden administration sought to weaken Russia militarily and economically by dragging it into a war in Ukraine. The Global North froze around 300 billion US dollars’ worth of Russian sovereign funds.

The failure of the proxy war in Ukraine has led to Trump proposing a ceasefire and attempting to win over Russia in order to isolate its neighbour and close partner China. However, this tactic has led to heightened contradictions between the US and the European Union.

Despite presenting himself as an anti-war candidate, the Trump administration has been intensifying the genocide in Gaza and enabling attacks on Syria and Yemen, which is a direct provocation for Iran. This is a dangerous situation for Asia. The US has now brought stealth bombers to the Diego Garcia base in the occupied Chagos Islands in the Indian Ocean in order to attack Yemen.

Moves by successive US administrations since 2008 have only served to further undermine US leadership over the global economy and fan the flames of war across the world. Trump’s tariffs are part of this pattern.

Today, the moral bankruptcy of imperialism is plain to see. The writing is written on the wall with the blood of over 50,000 Palestinians murdered by Israel with the support and complicity of the US and EU.

The inability of neoliberalism and the Bretton Woods Institutions to deliver development to the majority of people in the Global South has also become undeniable. According to the UN, developing countries owe a collective 11.4 trillion US dollars in external debt. 3.3 billion people are living in countries that spend more on interest payment than education and health.

In this context, Sri Lanka, which was one of the first guinea pigs of neoliberalism, must decisively break from this system. It is a great disappointment that the present government reneged on its campaign promise of renegotiating with the IMF. It is still not too late to formulate an industrial and investment plan for the country, and speak to partners and institutions in the Global South.

The main political parties in Sri Lanka remain either clueless or silent about the tectonic changes in the global economy and what they mean for the country and its people. The current NPP government also appears unable or unwilling to educate the people about the current historical conjuncture.

The rise of BRICS, the Belt and Road Initiative (BRI), and other cooperative frameworks signals the possible emergence of an alternative economic order, challenging the outdated Bretton Woods system dominated by Western financial institutions. Sri Lanka must be a part of this process.

Previous efforts like the Bandung Conference, Non-Aligned Movement, and G77 were constrained by an unfavourable balance of power. Today, the objective conditions are changing. The rise of the Global South is irreversible and we must seize this moment to forge a more democratic world order.”



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President proposes; Speaker disposes

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Dr. Wickramaratne

AKD’s request to Harsha:

Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.

Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.

Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.

The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”

Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”

The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.

The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.

Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.

The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.

Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.

The Parliament has not so far called for applications to fill the forthcoming vacancies.

by Shamindra Ferdinando ✍️

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Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP

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Pubudu

The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.

Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.

Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.

The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.

He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.

Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.

The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.

Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.

by Chaminda Silva ✍️

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CID summons SJB MP for criticising education reforms

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Prasad

SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.

He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.

Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.

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