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Only traitors won’t accept urgent economic reform agenda acceptable to IMF

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Priyantha Mayadunne, Public Administration Ministry Secretary

Public Administration Secretary:

By Shamindra Ferdinando

New Public Administration Ministry Secretary Priyantha Mayadunne has warned political parties represented in Parliament, state and private sector trade unions and the civil society that they will soon be categorised as traitors unless they agreed to a far reaching economic reforms agenda.

Attorney-at-Law Mayadunne issued the warning over the last weekend at a meeting of public administration officers held at the Postal Auditorium, near Lotus Tower.

One-time Justice Ministry Secretary Mayadunne replaced J. J. Ratnasiri as Secretary to the Ministry of Public Administration, following the appointment of the new Cabinet.

The normally soft-spoken Mayadunne declared that the country was in such a precarious situation, especially in the absence of a tangible recovery plan yet. Therefore, the government and other stakeholders didn’t need IMF’s intervention to undertake a wide ranging reform agenda on their own without delay.

The declaration was made close on the heels of the revelation at the recent sittings of parliamentary watchdog committee how the then Presidential Secretary Dr. P.B.J. Jayasundera rejected IMF’s intervention in March-April 2020.

During the COPE

(The Committee on Public Enterprises) proceedings on May 25, Governor of the Central Bank Dr. Nandalal Weerasinghe revealed how the then government callously dismissed IMF recommendations for immediate debt restructuring programme and advice not to implement large scale tax cuts.

Asked whether he had earned the wrath of the political authority for being critical of successive governments and the current dispensation for Sri Lanka’s predicament, Mayadunne said that he solidly stood by what he said at the forum. “There is absolutely no point

in suppressing the truth or making foolish efforts to deceive the masses. The public must be taken into confidence and told how to face the growing crisis. But, the crisis cannot be addressed unless the political parties, both in and outside Parliament, trade unions and civil society groups recognize and accept their responsibilities,” Mayadunne said.

Acknowledging his own shortcomings, Mayadunne told a public servants’ meet over the last weekend, those who served the public service for 30 years were responsible for varying degrees.

Mayadunne asserted that successive governments bear the responsibility for creating an oversized public service that was a very heavy burden on the taxpayer. Pointing out that the public service comprised staggering 1.5 mn members, Mayadunne declared that the country could have afforded 500,000. Sri Lanka could have managed 500,000 to 800,000 but today there were nearly double the amount of public servants the country could afford, Mayadunne said.

 Mayadunne recalled how he requested the then Secretary to the President in 2004 not to expand the public service by accommodating a large group of graduates as it could cause a catastrophe one day. As a result of following dangerous politically motivated policies, those now retiring from the public service faced the risk of not being able to receive a monthly pension. The situation was so bad the retirees couldn’t expect to receive gratuity, Mayadunne said, warning that all would have to forgo perks and privileges for a period of ten years.

The top official urged trade union leadership regardless of the sectors they represented not to make utterly irresponsible demands under any circumstances. The government lacked the wherewithal to meet basic requirements, such as salaries let alone addressing other demands.

Acknowledging the extreme difficulties experienced by a large section of public servants, Mayadunne strongly advised against a salary increase as it could create an extremely volatile situation. Mayadunne warned that salary increases to public servants at a time others didn’t have relief at all could result in violence being directed at the decision makers. Perhaps an appropriate transport allowance could be considered due to high cost of public and private transport.

Mayadunne said that the country was on the verge of a famine. Whatever various people said that the Yala season couldn’t meet the country’s requirement, he said, adding that crisis-hit countries in the region weren’t in a position to meet the shortfall. June would be far worse than May and the country couldn’t anticipate foreign food assistance either, Mayadunne said.

Recalling the hardships experienced by the people of the North during the conflict, Mayadunne warned that the way the financial crisis developed and the overall situation deteriorated, credit cards issued here would soon be useless.

The Ministry Secretary warned that the Western Province where about 90 percent of its paddy requirement had to be brought from outside would be the worst affected region.

Declaring that the vast majority of people found it extremely difficult to make ends meet, Mayadunne said that even having a glass of milk was a luxury.

The top Public Administration official said that there was nothing that the population here could do now to rectify waste, corruption, irregularities and mismanagement, if the country ended up in an unprecedented crisis.

Revealing that public servants were owed a staggering Rs 17 bn in gratuity payments, Mayadunne said the duty free car permit issued to them couldn’t be utilized now for obvious reasons.

Underscoring the responsibility on the part of the executive, the legislature and the judiciary to address the issues at hand, Mayadunne said that regardless of public standing all should be subjected to a common agenda. Water, electricity and other essential services shouldn’t be provided free of charge as the country struggled to cope up with extremely daunting challenges.

Mayadunne said that trade unions would have to align with the overall national plan meant to save and revive the economy.

Alleging that national policies developed at taxpayers’ expenses ended up in the dustbin, Mayadunne explained how irresponsible governance over a period of time ruined the country. He slammed successive governments over public sector recruitment, extravagant state-projects, and perks and privileges granted to lawmakers.

Mayadunne said that the establishment of Commissions wouldn’t change the public service overnight. As long as the politicians exercised power over officials, the current situation would continue, Mayadunne declared, insisting that key appointments should be handled by the Constitutional Council. Comparing a Secretary to a Ministry with a peon, Mayadunne said that since 2015, he had held 17 appointments and by the time he retired he would get an opportunity to serve in three other places.



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BASL calls for conscience vote on 22nd Amendment

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The Bar Association of Sri Lanka (BASL) yesterday called on all political parties, represented in Parliament, to allow their members to vote on the proposed 22nd Amendment to the Constitution according to their conscience, stressing that the responsibility for deciding whether the Bill should be enacted now rests with Parliament.

In a statement issued after the Supreme Court’s determination on the 22nd Amendment Bill, BASL President Rajeev Amarasuriya and General Secretary Nalin de Silva have said the SC’s determination should not be interpreted as an endorsement of the proposed constitutional amendment as a matter of policy.

The BASL has said the SC’s jurisdiction, under Articles 120, 121 and 123 of the Constitution, was to determine the constitutional requirements for the enactment of the Bill, including whether the Bill, or any of its provisions, required approval at a referendum under Article 83.

“The determination is therefore not a determination as to whether the proposed amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it,” the BASL said.

Full text of the BASL statement: The Supreme Court has now delivered its Determination on the Twenty-Second Amendment to the Constitution Bill and determined that the Bill does not require the approval of the People at a Referendum.

In terms of Articles 120, 121 and 123 of the Constitution, the jurisdiction of the Supreme Court in relation to the Bill is to determine the constitutional requirements for its enactment, including importantly whether the Bill, or any provision thereof, requires the approval of the People at a Referendum by virtue of Article 83.

The Determination is therefore not a determination as to whether the proposed Amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it.

This distinction is also evident from Sri Lanka’s previous constitutional amendments. During the 48 year history of the second republican Constitution there have been many amendments which passed constitutional muster but nevertheless had a negative effect on democracy, constitutionalism, the independence of the judiciary and the rule of law.

The question that now arises is whether Parliament ought to enact the proposed Amendment. That responsibility rests with Parliament and with each individual Member of Parliament when they vote on the Bill.

In making that decision, Members of Parliament should be mindful of the possible and probable consequences the 22nd Amendment will have on our nation. They should also consider the lack of transparency and a proper consultative process in the introduction of the 22nd Amendment. As representatives of the people they should also consider the concerns that have been expressed in relation to the proposed Amendment by a broad cross-section of society including the Maha Nayakes of the Three Nikayas, the Catholic Bishops’ Conference in Sri Lanka, the Church of Ceylon, the Bar Association of Sri Lanka, the Judicial Service Association, the Commonwealth Lawyers Association, LAWASIA, the International Association of Judges, the United Nations Special Rapporteur on the Independence of Judges and Lawyers, the French National Bar Council, and more than 40 Professional Associations and Unions, including the Government Medical Officers’ Association and other leading professional bodies.

Accordingly, the Bar Association of Sri Lanka calls upon all the political parties in Parliament to allow the Members of Parliament to speak and vote on the 22nd Amendment according to their conscience.

The responsibility now lies with Members of Parliament, when called upon to vote, to take a principled position according to their conscience giving due consideration to their constitutional responsibility, their representative capacity and most importantly their duty to the sovereign People of Sri Lanka.

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IMF: Sri Lanka on course for 2027 market return

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SL to regain access to international financial and capital markets next year in line with IMF projections

Sri Lanka is on course to regain access to international financial and capital markets around 2027, in line with the International Monetary Fund’s (IMF) current economic projections, IMF Mission Chief Evan Papageorgiou said yesterday.

Papageorgiou said the IMF’s core assumptions under Sri Lanka’s economic programme continued to envisage the country returning to international capital markets in 2027.

“Our previous assumption that Sri Lanka will go back to capital markets still stands. We still have a good trajectory to achieving this in 2027 or thereabouts, and that should be the goal,” he said.

Papageorgiou stressed that Sri Lanka could not rely solely on domestic sources of financing to build long-term economic resilience and would need a diversified funding strategy.

“Every country needs to have a good ability to access funds both in domestic markets, as it already has, as well as international markets for eurobonds and other modes,” he said.

He said a return to international capital markets would have significant implications for Sri Lanka’s external debt composition, while strengthening foreign exchange reserves would remain essential as the country prepares to meet future debt-servicing obligations.

The IMF’s assessment comes amid improving international investor sentiment towards Sri Lanka and positive developments in the country’s sovereign credit ratings.

Papageorgiou cited Fitch’s recent upgrade of Sri Lanka’s credit rating as a positive development, saying global investors were increasingly viewing the country from a more constructive perspective.

Sri Lanka remains under the IMF’s Extended Fund Facility (EFF) programme, which is scheduled to continue until March 20, 2027. Regaining access to international capital markets remains a key milestone under the country’s broader economic recovery.

The IMF has stressed the importance of rebuilding Sri Lanka’s foreign exchange buffers and maintaining stability in domestic financial markets as the country approaches substantial external debt repayments.

A sustained improvement in these areas would help strengthen the country’s capacity to return to international markets while safeguarding macroeconomic stability, the IMF has indicated.

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President appoints three new judges to High Court

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From Left: New HC judges Perumal Sivakumar, Anandi Kanagaratnam and Gnanesha Lalith Kannangara receiving their letters of appointment yesterday from the President

President Anura Kumara Dissanayake yesterday (23) handed over appointment letters to three Special Grade officers of the Judicial Service as High Court Judges, at a ceremony held at the Presidential Secretariat, according to the President’s Media Division (PMD).

The new appointees are Perumal Sivakumar, District Judge of Jaffna; Anandi Kanagaratnam, Senior Assistant Secretary of the Judicial Service Commission; and Gnanesha Lalith Kannangara, District Judge of Colombo.

The three senior Judicial Service officers will take up duties as High Court Judges following their appointments.

The appointments were made from among Special Grade officers of the Judicial Service, the PMD said.

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