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Advisory Committee’s proposals to Prez:

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Question mark over Monetary Board’s role

By Shamindra Ferdinando

Former Governor of Uva, Southern and Central Provinces Rajith Keerthi Tennakoon yesterday (22) asked what the role of the Monetary Board would be in case the National Economic Council (NEC) headed by President Gotabaya Rajapaksa accepted the set of proposals made by an Advisory Committee especially appointed to strengthen government efforts to overcome the deepening financial crisis.

 The Monetary Board comprises Governor of the Central Bank Ajith Nivard Cabraal (ex-officio), Treasury Secretary S. R. Attygalle (ex-officio), Sanjeewa Jayawardena, PC, Dr. Mrs. Ranee Jayamaha and Samantha Kumarasinghe.

Jayamaha, an ex-Deputy Governor of CBSL, and Multichemi International Ltd., Chairman Kumarasinghe joined the Monetary Board in late June 2020 whereas Jayawardena received his appointment in Feb 2020.

 Tennakoon told The Island that the President’s Media Division (PMD) hadn’t referred to the five-member Monetary Board at all when issuing statements in Sinhala and English that dealt with five proposals meant to address the issues at hand.

 The Advisory Committee handed over its proposals to President Rajapaksa on Monday (22).

 The civil society activist who recently received appointment as Executive Director, Sri Lanka Human Rights Centre asked whether the proposals had been made without taking into consideration the functions of the Monetary Board. Ad-hoc mechanisms couldn’t be expected to perform the stipulated functions of the Monetary Board, the CBSL and the Treasury, Tennakoon said.

 The NEC comprises President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa, Ministers Dr. Bandula Gunawardane, Basil Rajapaksa, Johnston Fernando, Mahindananda Aluthgamage, Dr. Ramesh Pathirana, Governor of the Central Bank Ajith Nivard Cabraal, Secretary to the President Gamini Senarath, Secretary to the Treasury S.R. Attygalle, and Deputy Governor of the Central Bank Dhammika Nanayakkara.

 The Advisory Committee comprised H.D. Karunaratne, Prof. Shirantha Heenkenda, Dhammika Perera, Krishan Balendran, Ashroff Omar, Dushni Weerakoon, Dr. Hans Wijesuriya, Vish Govindasamy, S. Renganathan, Ranjit Page, Suresh de Mel, Duminda Hulangamuwa, Sujeewa Mudalige and Prabash Subasinghe.

 Tennakoon urged political parties represented in Parliament and those genuinely interested in public wellbeing to take up these issues. The civil society activist said that though two members of the Monetary Board namely Cabraal and Attygalle had been accommodated in the NEC, the apex apparatus had been neglected.

 Responding to another query, Tennakoon pointed out that the declaration made by the Chinese Ambassador in Colombo Qi Zhenhong about Sri Lanka making fresh request for USD 1 bn financing facility and USD 1.5 bn buyer’s credit proved again the failure on the part of the government to take the public into confidence. Tennakoon said that according to Ambassador Qi Zhenhong statement in addition to the USD 2.5 bn the government had asked from China, since March 2020 China provided funding amounting to USD 2.8 bn.

 Tennakoon said that the Advisory Committee’s proposals for the appointment of a joint Technical Team comprising CBSL and Treasury officials to propose international assistance, appointment of financial and legal advisors, the Technical Team to come out with set of proposals, expert team to advise the Finance Minister and confidence building measures to address supply related issues should be examined taking into consideration perceived shortcomings in existing mechanisms.

 Commenting on the forex crisis, Tennakoon said that the NEC and Advisory Committee couldn’t be unaware of how an inordinate delay on the part of the Finance Ministry and the CBSL in taking remedial measures caused the current catastrophe. Who would take the responsibility for delaying the decision on the IMF’s intervention for so long? Tennakoon asked, pointing out that one-time Deputy Governor of the CBSL Dr. W.A. Wijewardena recently declared the current dispensation should have sought the IMF’s intervention in April 2021, during Prof. W. D. Lakshman’s tenure as the Governor.

 Tennakoon alleged that the government hadn’t correctly assessed the situation though the national economy was in a precarious stage. The Advisory Committee’s initial proposals failed to address the CBSL and the Finance Ministry not taking a common stand on the issue at hand, Tennakoon said. The two institutions right throughout the crisis pulled in different directions, thereby should be held responsible for the present pathetic state of affairs, he said.



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Sun directly overhead Pomparippu, Anuradhapura, Mihinthale, Galenbindunuwewa, Agbopura and Serunuwara about 12:11 noon today (11)

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On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from 05th to 15th of April in this year.

The nearest areas of Sri Lanka over which the sun is overhead today (11th) are Pomparippu, Anuradhapura, Mihinthale, Galenbindunuwewa, Agbopura and Serunuwara about 12:11 noon.

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Opposition NCM against Energy Minister defeated

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A no-confidence motion brought by the Opposition against Energy Minister Kumara Jayakody was defeated in Parliament yesterday by a majority of 104 votes.At the end of the debate, 49 members voted in favour of the motion, while 153 voted against it.

The motion, submitted to the Speaker on 19 March, was signed by Opposition Leader Sajith Premadasa, SJB MPs, and other Opposition members.

It accused Minister Jayakody of failing to ensure the procurement of adequate and quality coal for the Lakvijaya Coal Power Plant in Norochcholai, alleging that such negligence amounted to a breach of ministerial responsibility over a critical national energy asset.

The motion also cited ongoing legal proceedings against the Minister, noting that he has been indicted by the Commission to Investigate Allegations of Bribery or Corruption and produced before the Colombo High Court under Section 70 of the Bribery Act, in connection with alleged acts of corruption during his tenure as Procurement Manager of the Ceylon Fertiliser Company Limited.

The motion read: Vote of No Confidence against Kumara Jayakody, Minister of Energy,— Whereas the Provision in Section 6 of the Part III of the Code of Conduct for Members of Parliament which states that: “The Members shall on all occasions act in accordance with the public trust entrusted with them and shall always behave with probity and integrity, including the use by them of any public resources.” has been violated; And whereas the following rules of conduct set out in Section 9 of the Part V of the Code of Conduct for Members of Parliament have prima facie been breached, namely:- “(a) to be conscience; (c) to act so as to merit the trust and respect of the people; (e) to hold themselves accountable for the conduct and duties for which they are responsible;” And whereas it is observed that the Minister has failed, in his capacity as a Minister of the Cabinet of Ministers, to discharge the fundamental duties incumbent upon him in accordance with Article 28 of the Constitution;

And whereas it is established that the Minister of Energy has failed to discharge his primary duty of ensuring the procurement of adequate and good quality coal for the Norochcholai Lakvijaya Coal Power Plant;

And whereas such gross negligence in overseeing a critical national energy asset constitutes a fundamental breach of ministerial responsibility;

And whereas the Minister of Energy has failed to carry out the subjects and functions vested in him by the Notification of Gazette Extraordinary No. 2412/08 of 25th November 2024 of the Democratic Socialist Republic of Sri Lanka, including taking necessary steps to reduce the losses at the institutional management level and technical damages that occur to the electricity generation and distribution system and reduction of costs for generating electricity and removal of uncertainties during generation;

And whereas the Commission to Investigate Allegations of Bribery or Corruption has filed formal indictments before the Colombo High Court against the incumbent Minister of Energy under Section 70 of the Bribery Act (Chapter 26) for the offence of “corruption” in connection with acts of corruption allegedly committed while he was serving as the Procurement Manager of the Lanka Fertilizer Company;

And whereas, in light of the foregoing, the Minister of Energy has irretrievably forfeited the confidence of Parliament and the people of Sri Lanka by causing losses to public finances, endangering national energy security, corruptly mishandling the procurement process, being subjected to active judicial proceedings for the offence of “corruption”, and betraying the Government’s own “anti-corruption mandate”, and his continued tenure as the Minister of Energy is contrary to the public interest, the rule of law, and the principles of good governance;

That this Parliament resolves that it has no confidence in the competence of Kumara Jayakody, Minister of Energy to function as a Minister of the Cabinet of Ministers any longer.”

by Saman Indrajith

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Chinese Ambassador assures Lanka  China will not allow a fuel crisis to develop here

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Qi Zhenhong

Chinese Ambassador to Sri Lanka Qi Zhenhong yesterday assured that China would not allow a fuel crisis to arise in Sri Lanka, under any circumstances, reaffirming Beijing’s continued support to the country.

The Ambassador made these remarks addressing the media after attending a dry ration distribution programme for 350 low-income families at Sri Chandananda Buddhist College, at Asgiriya, in Kandy.

Highlighting the longstanding ties between the two countries, Ambassador Qi said China has consistently stood by Sri Lanka and remains ready to extend assistance whenever required.

Amid concerns over global energy disruptions, stemming from the ongoing Middle East conflict, he noted that several countries are already facing difficulties, but stressed that China is prepared to support Sri Lanka at any time.

He said that any potential fuel shortage in Sri Lanka could be managed with the involvement of China’s Sinopec.

Reiterating Beijing’s commitment to Sri Lanka’s economic recovery and development, the Envoy also expressed hope that the current ceasefire in the Middle East would hold, while assuring that China stands ready to respond to any future developments and assist Sri Lanka as needed.

By SK Samaranayake

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