Connect with us

News

Keerthi: IMF conditions painful but necessary

Published

on

Country paying heavy price for delaying decision

By Shamindra Ferdinando

Former Governor of Uva, Southern and Central Provinces Rajith Keerthi Tennakoon yesterday (16) said that those who objected to the government seeking IMF’s assistance had ruined the economy.

President Gotabaya Rajapaksa had, in his address to the nation on Wednesday, expressed his willingness to seek IMF assistance, Tennakoon said.

Tennakoon, one-time Executive Director of polls monitoring body CaFFE told The Island that in fact Sri Lanka had been engaged in discussions with the IMF since February 2019 in the run-up to the presidential election.

But the talks had suffered a setback following the change of government following the 2019 presidential election, Tennakoon said, adding that one of conditions was the enactment of Monetary Law Act to bring about discipline the financial sector and stability, Tennakoon said.

According to him, one of the key conditions had been to remove Secretary to the Finance Ministry from the five-member Monetary Board. The IMF believed far reaching changes were necessary to restore financial discipline, particularly uncontrolled printing of notes that had caused inflation.

Tennakoon said that Finance Minister Basil Rajapaksa favoured IMF’s intervention. As soon as he succeeded Mahinda Rajapaksa as the Finance Minister in July last year, Sri Lanka sought the IMF intervention. Much respected former Governor of the Central Bank and head of a Sri Lanka overseas mission arranged the IMF’s intervention, Tennakoon said.

Responding to queries, Tennakoon said that the government would be asked by the IMF to implement the late Mangala Samamaweera’s formula that helped Treasury to collect well over Rs 1,900 bn in 2019 and the current dispensation lost well over Rs. 500 bn due to a controversial decision to do away with a range of taxes, including PAYE (Pay As You Earn), NBT (Nation Building Tax), Withholding tax, Capital Gain tax imposed on the Colombo Stock Exchange, Bank Debit tax and unprecedented reduction of VAT (Value Added Tax).

Tennakoon said that the 15% VAT and the 2% NBT which amounted to 17% imposed on all goods and services were unified and reduced to 8%, effective from the first of December 2019.

He said that the decision was taken at the first cabinet meeting of the incumbent government held on Nov 27, 2019.

Sri Lanka would be also asked to introduce pricing mechanisms for electricity and fuel if the government wanted IMF’s assistance, Tennakoon said. Interest rates, too, shouldn’t be subjected to political whims and fancies, Tennakoon said, adding that the IMF conditions would cause tremendous pressure on the government though it was in such a desperate situation it couldn’t take a tough stand.

As many as 40 loss-making state enterprises including national carrier SriLankan were likely to be identified for privatization or re-structuring, Tennakoon said, urging political parties not to sabotage current efforts at reaching consensus on national economy.

The one-time favourite of former President Sirisena emphasised that the government should without delay inquire into the circumstances leading to the Central Bank suddenly floating rupee over a week ago. It would be pertinent to ask whether the Central Bank has sought Cabinet approval before the announcement was made, Tennakoon said, alleging the country suffered due to the Finance Ministry and the Central Bank pulling in different directions.

The civil society activist alleged that for want of a cohesive action plan, the government inadvertently caused serious mistakes though nothing could be as bad as handling of the national economy.

Tennakoon said that the IMF’s role undermined Pohottuwa policies but the ruling party couldn’t do anything about it. Commenting on social media reports of CBSL Governor Cabraal being asked to step down immediately, Tennakoon said that no one could force him to do so. Cabraal could continue till July 4, 2022 as he was in the process of completing the period allocated for his predecessor, Tennkoon said, adding that though the President could replace Cabraal after July 4 it wouldn’t help to address the crisis.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Athapaththu and Dilhari muscle Sri Lanka past Malaysia in mismatch

Published

on

By

Kavisha Dilhari scored a quick unbeaten 44 and then picked up two wickets [Asian Cricket Council]

The quarter-finals of the Asian Games women’s competition, putting top-notch teams against teams without much experience of playing at the highest level, were expected to be mismatches. It took till the third game – Bangladesh vs China was washed out and Thailand gave Pakistan a fright for a proper one-side affair, though, as Sri Lanka bashed 160 after opting to bat, and their bowlers then stopped Malaysia 86 runs short.

Fresh off their appearance in the final of the Women’s T20 Asia Cup, Sri Lanka were always expected to dominate, but it didn’t quite start the way they wanted, with Imesha Dulani run out for another low score in the third over – she hasn’t topped 25 in eight innings since her century against Pakistan on July 31.

Chamari Athapaththu,  however, stitched together an 80-run stand off just 53 balls with Hasini Perera for the second wicket, scoring 56 runs in 27 balls to Perera’s 23 in 26 in the collaboration. After the two batters fell, Kavisha Dilhari played a similar role to Athapaththu in the stand with Harshitha Samarawickrama, scoring 36 in 19 in a stand worth 62 in 37 balls.

Athapaththu top-scored with 63 in 37 balls, while Dilhari’s unbeaten 44 came off just 27 balls. For Malaysia, offspinner Nurin Imanina impressed with 3 for 29 from her four overs, picking up all the wickets to fall to bowlers.

In reply, Malaysia were three down inside the powerplay, with Dilhari picking up two of the wickets to fall on her way to returns of 2 for 4 from three overs. Athapaththu chipped in with two wickets of her own to finish with 2 for 3 from two overs, while Mithali Ayodhya got 2 for 15 from three.

It’s not like there was no resistance from Malaysia: Winifred Duraisingam scored 28, though it took her 47 balls to do it, while Mahirah Izzati Ismail scored 24, another slow effort, taking her 42 balls.

Scores:
Sri Lanka Women  160 for 4 in 20 overs  (Athapaththu 63, HasinMithali Ayodhya 2-15i Perera 23, Kavisha  Dilhari 44*, Harshitha Samarawickrema 25; Nurin Imanina 3-29) beat Malaysia Women 74 for 7 in 20 overs (Winifred Duraisingam 28, Mahirah Izzati Ismail 24; Mithali Ayodhya 2-15, Kavisha Dilhari 2-04, Chamari Athapaththu 2-03, ) by 86 runs

[Cricinfo]

Continue Reading

News

Bid for Basil’s extradition nears final stage: Police

Published

on

Basil Rajapaksa

Govt. is finalising extradition proceedings against Basil to have him stand trial here in respect of several cases

By Norman Palihawadane

The process of having former Minister Basil Rajapaksa extradited from the US to Sri Lanka was being finalised, Police Headquarters sources disclosed yesterday.

The government has formally sought assistance from the United States government to extradite former Minister Basil Rajapaksa, as multiple courts have reissued arrest warrants over his failure to appear before them in connection with two separate criminal cases, a senior police officer told The Island.

The officer, speaking on condition of anonymity, said matters pertaining to obtaining US government authorities’ assistance to extradite Rajapaksa were now being finalised.

Police headquarters sources said law enforcement agencies were currently evaluating red notices, which request the location and provisional arrest of a person pending formal extradition.

The CID and Police Headquarters earlier initiated steps to seek INTERPOL assistance to secure Rajapaksa’s return to Sri Lanka to face court proceedings relating to the two cases in which arrest warrants have been issued against him.

Rajapaksa is believed to be residing in Los Angeles, United States.

The Matara Chief Magistrate’s Court on July 21, 2026, reissued an arrest warrant for Rajapaksa after he failed to appear before court for the second time in connection with a case involving the alleged purchase of a 1.5-acre coconut estate on Eliyakanda Road in the Brown’s Hill area of Matara.

The case relates to the purchase of the property for Rs. 60 million.

The case was filed by the Police Financial Crimes Investigation Division and names Basil Rajapaksa and several other accused, including Ayoma Galappaththi, identified in court reports as the sister of Rajapaksa’s wife, Tissa Galappaththi, and Muditha Jayakody.

However, officials acknowledged that seeking US assistance would only begin a formal international process and would not automatically result in Rajapaksa’s arrest or return to Sri Lanka. Sri Lankan authorities would need to submit court orders, details of the alleged offences, and other supporting documents through the appropriate diplomatic and judicial channels. Any request would then be considered by the relevant US authorities under American law and applicable legal arrangements.

Sources at the Foreign Ministry said sealed correspondence had been exchanged between Sri Lanka’s Ministry of Foreign Affairs and the Legal Department of the US State Department relating to corruption allegations against members of the Rajapaksa family residing in the United States.

The legal foundation for any extradition is the bilateral treaty between Sri Lanka and the United States signed in Washington on September 30, 1999. The treaty applies the principle of dual criminality, meaning authorities must show that the underlying conduct amounts to a crime in both countries. Rajapaksa’s status as a United States citizen would not, on its own, make him immune from a valid request under the treaty’s provisions.

Continue Reading

News

High blood pressure, diabetes lead to about 80% of deaths in Sri Lanka

Published

on

Non-communicable diseases (NCDs) account for 80% of all deaths in Sri Lanka, with high blood pressure and diabetes among the leading causes, Secretary to the Ministry of Health and Mass Media, Dr. Anil Jasinghe, said early this week.

Dr. Jasinghe pointed out that the two conditions were interrelated and could lead to a range of serious health complications, with heart attacks being among the most severe consequences.

Dr. Jasinghe made these remarks while attending the commencement of construction of a modern Cardiac Care Complex at the Anuradhapura Teaching Hospital on Wednesday (16).

The Health and Mass Media Ministry Secretary said:

“The main issue is that these two diseases are interconnected and cause a range of complications in a person’s health. Looking at the current situation in Sri Lanka, only around 50% of those suffering from high blood pressure are under effective control. Similarly, only around 25% of diabetic patients are under proper control. As a result, this has now become a major problem in society.

“The most serious complication associated with both these diseases is Myocardial Infarction (MI), or a heart attack. This has also become the

leading complication. So, how do we control this modern epidemic? This is the biggest challenge before us.

“While establishing modern facilities across the country, our health system must also recognize the changes that have taken place in the demographic structure of our population and disease patterns. Accordingly, our health system must be adapted to suit these changing circumstances.

“Under the policies of the government led by the President and the guidance of the Minister of Health, the Ministry of Health and Mass Media is currently implementing a major programme in this regard. Its three main components are Arogya, Cluster Systems and High-End Care Institutions, which need to be developed to suit the requirements of our health system.”

Continue Reading

Trending