Connect with us

News

Automakers wait and watch as crisis worsens 

Published

on

Top executives at Tata Motors, Bajaj Auto, TVS Motor and Mahindra Finance which have operations in Sri Lanka said it’s a challenging environment to do business but they remain committed to the Sri Lankan market, and are hoping that the situation will improve over the next 3-4 months, Times of India reported.

Experts said some companies may mull de-scaling operations or even pull out of the country if the situation doesn’t improve in the near to medium term.

The distributors said there has been a reduction in per day production as the political and economic crisis escalated in the country.

They said the ground situation is very different.

“We have to fend for ourselves and get foreign exchange to import kits and keep assembly lines running,” said Nalin Welgama,Executive Chairman of Ideal Group, a leading automobile dealer.

Import of vehicle kits is currently heavily restricted in Sri Lanka owing to the foreign currency shortage. Industry executives said that shipment of vehicle kits, including those of light commercial vehicles, trucks and buses, has declined sharply, as the country grapples with precariously low forex reserves and fuel shortage.

While Tata Motors has been exporting vehicle kits to distributors in Sri Lanka, others such as Mahindra & Mahindra, Ashok Leyland and TVS Motor have local assembly operations in the country.

“We have to go with the flow,” said Rakesh Sharma, executive director of Bajaj Auto.

“TVS, through its partnership with TVS Lanka, remains committed to the potential of the Sri Lankan market. While the current situation presents challenges, we are hopeful that they will be overcome,” said Rahul Nayak, vice president, international business, TVS Motor Company. “In the meantime we are committed to taking care of our existing customers with service and spare parts.”

Ramesh Iyer, vice chairman of Mahindra Finance, said the company is monitoring the situation and taking necessary precautions. “The situation in Sri Lanka has led to a natural slowdown in business operations. Our commitment to the Sri Lanka market is for the long term and we are hopeful that the situation will improve soon, he said.

People in the know said that with the collapse of the administration, there is very little financing activity at the NBFCs and most are instead giving loans against gold.

A spokesperson for Tata Motors said the company is hopeful that the country recovers from the crisis soon. The company sells a wide range of products in Sri Lanka–from the 750-kg Ace to the 45-tonne Prima trucks.

In January this year, the Sri Lankan government had approved the purchase of 500 buses from Ashok Leyland for its transport board. In August 2019, Mahindra & Mahindra had set up assembly operations in Sri Lanka with the Ideal Group to produce the KUV 100 mini sport utility vehicle (SUV) and Bolero Maxi pickup truck.



Continue Reading
Advertisement
Click to comment

Leave a Reply

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

News

New Chancellor appointed to General Sir John Kotelawala Defence University

Published

on

By

President Anura Kumara Dissanayake has appointed Air Chief Marshal Kolitha A. Gunathilake (Retd.) as the new Chancellor of General Sir John Kotelawala Defence University.

The letter of appointment was presented to Air Chief Marshal Kolitha A. Gunathilake (Retd.) by Secretary to the President Dr Nandika Sanath Kumanayake at the Presidential Secretariat on Monday (05) afternoon.

Air Chief Marshal Kolitha A. Gunathilake(Retd.) has served as Commander of the Sri Lanka Air Force and as Chief of Defence Staff.

(PMD)

Continue Reading

News

Govt. urged to halt ‘illegal’ presidential pardons

Published

on

Ven. Gnanasara Thera reacts as prison officers escort him out of the Court of Appeal, which yesterday (05) ordered the sixyear prison sentence imposed on him in 2018 to take effect.

By Shamindra Ferdinando

The government is coming under pressure from civil society organisations to formulate a clear ‘mechanism’ to deal with requests for presidential pardons.

Representing civil society organisations, Gamini Viyangoda yesterday flayed the NPP government for the delay in taking action against Ven. Galagoda Aththe Gnanasara Thera, after the Supreme Court declared the 2019 presidential pardon granted to him by President Maithripala Sirisena null and void. He said successive Presidents had abused their executive power to release convicted persons from prison.

Purawesi Balaya activist Viyangoda pointed out that the Supreme Court ruled that President Sirisena had acted arbitrarily and failed to independently consider the relevant materials before exercising his executive power.

The Court of Appeal, in August 2018, sentenced Gnanasara Thera, General Secretary of the Bodu Bala Sena (BBS), to six years rigorous imprisonment for contempt of court over his conduct during proceedings concerning missing journalist Prageeth Ekneligoda. Viyangoda said that those who had been affected by the monk’s conduct have the right to know on what basis the President released him, in May 2019.

The Court of Appeal yesterday (05) ordered the relevant authorities to enforce the remaining period of imprisonment imposed on the Thera.

Gnanasara Thera, who had been subject to an open warrant for his arrest, was produced before the Court of Appeal, today, by prison officials.

Having considered the submissions made before it, the Court of Appeal directed the Commissioner General of Prisons to take the necessary steps to enforce the remaining period of the sentence imposed on Gnanasara Thera. Police on Saturday (03) apprehended the monk at a forest monastery in Kalutara. The Colombo Magistrate’s Court on Sunday (04) ordered the Thera to be remanded in custody till Monday.

Appearing for Gnanasara Thera, Attorney-at-Law Iresh Seneviratne, together with Attorney-at-Law Pasan Karunaratne, told the court yesterday that his client had been experiencing severe mental distress and had therefore gone to an ‘Aranya Senasanaya’, where he had been staying.

Viyangoda said that examination of presidential pardons, executed over the years, would reveal how successive leaders exploited the executive power to appease their own. Responding to The Island queries, Viyangoda said that Sirisena, in Sept. 2019, just two months before the presidential election, granted Jude Shramantha Jayamaha a Presidential pardon.

Jude Shramantha Jayamaha was sentenced to 12 years by the High Court, but the Court of Appeal revised that sentence to death, in July 2012, which the Supreme Court later upheld. Viyangoda said that though the Supreme Court, in June 2024, declared that the particular Presidential action was illegal and arbitrary, law enoforcement authorities were yet to take tangible measures to enforce the court directive.

Viyangoda stressed that no President should exercise the right to pardon a convicted on his or her own without following laid out procedures. According to him, Sirisena appeared to have simply ordered the monk, and the convicted murderer, released in response to appeals received by him. A comprehensive investigation could identify those who had been involved in these wrongdoings.

Continue Reading

News

GL urges cautious handling of Saudi death row case, blasts govt. over BRICS affair

Published

on

Prof. Peiris

Convenor of Janathawadi Joint Opposition, Prof. G. L. Peiris, yesterday (05) emphasised the responsibility on the part of the government and others to act cautiously when making representations in respect of Sivarasa Anojan facing death sentence in Saudi Arabia over a controversial social media post.

Addressing the media at former President Ranil Wickremesinghe’s Flower Road Office, Prof. Peiris emphasised that whatever representations should be made through the Foreign Ministry.

The one-time External Affairs Minister warned of dire consequences of political party leaders, members of Parliament and civil society making direct representations and trying to get in touch with various Saudi authorities over the phone.

Prof. Peiris said that those who intervened on behalf of Anojan should keep in mind that Sri Lanka should be mindful of the Saudi way of governance and sensitivities.

The former Minister questioned the circumstances Sri Lanka was left out of the recent BRICS summit held in New Delhi. He recalled how former President Wickremesinghe discussed Sri Lanka’s entry into BRICS with Russian President Putin and received an invitation for the Summit there but as a result of the change of government, in Sept. 2024, Sri Lanka ignored that invitation.

That resulted in Sri Lanka being left out from the New Delhi summit, Prof. Peris said.

Prof. Peiris pointed out the absurdity in sending the Foreign Secretary to the BRICS Summit in Russia instead of the President, PM or the Foreign Minister to represent the country.

Referring to the forthcoming conclusion of the current IMF programme, initiated during Wickremesinghe’s time, Prof. Peiris said that Sri Lanka lost a great opportunity to benefit from BRICS by failing to represent the country at a higher level at the Russian summit.

The BRICS nations established the New Development Bank (NDB), originally called the BRICS Development Bank, Prof. Peiris said.

Dismissing NPP government’s explanation regarding Iranian ships awaiting necessary supplies but deprived by US imposed restrictions, the former Minister strongly criticised the administration’s response. According to him, this government responded in a similar manner when the US sank an unarmed Iranian frigate just outside Sri Lankan territorial waters in March this year.

Prof. Peiris declared that the government’s assertion that the US restrictions weren’t only directed at Sri Lanka but all Iranian vessels in other regions as well was not acceptable (SF)

Continue Reading

Trending