News
ADB assures more support but not debt cancellation
By Ifham Nizam
Instead of offers on debt cancellation, the Asian Development Bank (ADB) President Masatsugu Asakawa assured that they would provide more support to Sri Lanka to get out of the economic crisis.The ADB chief was responding to Hemantha Withanage, who was representing the Centre for Environmental Justice (ECJ) on behalf of the NGO Forum on ADB and other civil society organizations.
Asakawa also promised to support Sri Lankan people to come out of the humanitarian crisis.Withanage during the meeting requested the ADB President to investigate ADB loans to Sri Lanka from the lens of development effectiveness and debt crisis, as they are paramount.
“We request ADB to run an IED –Internal Evaluation Department- to evaluate failed projects and loans in Sri Lanka.
He also raised the issue of Policy Loans having direct impact on people, livelihoods, and environment. “We demand new safeguards and clear binding language pertaining to holding policy loans accountable and should be subject to accountability mechanisms.”Withanage said as a regional bank, they also demanded cancelling ADB failed loans in Sri Lanka. It will give a signal to other lenders to cancel some other illegitimate debt, Withanage stressed adding on their part they would continue to push on those recommendations.
He also requested the ADB President to put an end to all forms of support to fossil fuel finance and coal finance through a Renewable Energy Development Master Action Plan or any indirect and direct financing.Sri Lanka is a founding member of the ADB. To date, ADB has committed 479 public sector loans, grants, and technical assistance totalling USD 11 billion to Sri Lanka.
A report prepared by the Centre for Poverty Analysis on behalf of the ADB in 2007 concluded that “Together with the success stories, there were several reversals and failures of the ADB policies in the agriculture sector and several inconsistencies between GOSL and ADB policies.Withanage added that although ADB extended more lending to transport, energy, and agriculture, these sectors failed us. The main sources of income in Sri Lanka become migration workers and tourism.
“When COVID impacted Sri Lanka, we lost both these incomes. Can the ADB still justify its role as a policy bank? ADB is repeating some of the failures. Even at present in an ongoing project in Sri Lanka in the Energy sector ADB depends on the coal promoters as consultants to produce the Renewable Energy Master plan, Withanage pointed out.
He added: “We know that Sri Lanka has continued borrowing from private creditors and China since 2005 until we lost our debt sustainability by September 2020. There are many infrastructure projects which have not benefited the country. Some are now becoming illegitimate debts.
“Sri Lanka is not the only country in our region facing a debt crisis. Bangladesh, Pakistan, and Nepal are also losing debt sustainability. In that case ADB should revisit its approach on the development financing.”
Latest News
Fuel prices increased
The Ceylon Petroleum Corporation (CEYPETCO) has announced a revision of fuel prices, effective from midnight on Saturday (May 30).
Accordingly,
the price of Auto Diesel has been increased by Rs. 15 to Rs.407 per liter,
the price of Super Diesel has been increased by Rs. 20 to Rs. 478 per liter.
the price of Petrol 92 Octane has been increased by Rs. 24 to Rs. 434 per liter
the price of Petrol 95 Octane up by Rs. 25 to Rs. 495 per liter
the price of kerosene by Rs. 20 to Rs. 285 per liter.

News
Sangha reform drives stymied from within: CBK
Former President Chandrika Bandaranaike Kumaratunga has called for a comprehensive reform programme within Sri Lanka’s Buddhist clergy, warning that repeated efforts to strengthen the Sasana have in the past been derailed by opposition from within sections of the Sangha itself.
In a statement addressed to the Mahanayake Theras of the three Buddhist chapters, Kumaratunga stressed that the long-term preservation of Buddhism depends on safeguarding both the Dhamma and Vinaya, or disciplinary code, and urged urgent internal reform to address what she described as deep-rooted structural weaknesses.
She noted that Buddhist history has consistently demonstrated that periods of institutional crisis were addressed through reform processes, citing precedents from the First Buddhist Council to reforms during the Kandyan era under Welivita Sri Saranankara Thera.
Referring to post-independence efforts, Kumaratunga said initiatives taken during the 1956 Bandaranaike administration to strengthen Buddhism were left incomplete following the assassination of former Prime Minister S.W.R.D. Bandaranaike.
She further stated that during her own presidency, plans to convene a Buddhist Council under the guidance of the late Madihe Pannasiha Mahanayake Thera had received government backing but were ultimately abandoned due to resistance from certain sections within the clergy.
The former President alleged that, on both occasions, vested interests benefiting from existing weaknesses within the Buddhist establishment had worked to obstruct meaningful reform efforts.
Warning that Buddhism in Sri Lanka is currently facing serious challenges, she called for a broad internal dialogue within the Sangha to identify root causes and implement both short- and long-term corrective measures.
Kumaratunga urged the Mahanayake Theras to take the lead in convening a Dharma Sanghayana, or Buddhist Council, and said she was prepared to work with senior lay Buddhist leaders to support such an initiative.
News
Court orders arrest of Basil
The Colombo Fort Magistrate’s Court on Friday ordered the arrest of former Minister Basil Rajapaksa, Tourism Promotion Bureau Chairman Bhashwara Gunaratne, Managing Director Rumi Jauffer and several others over the alleged misuse of Rs. 7.8 million belonging to the Tourism Promotion Authority during the 2014 Uva Provincial Council election campaign.
Magistrate Pasan Amarasena directed the Criminal Investigation Department (CID) to arrest and produce the suspects before court, after it was informed that they would be named under the Public Property Act on the advice of the Attorney General.
The CID told court that attempts to take the suspects into custody from their residences had been unsuccessful as they were not present.
The Magistrate also imposed an overseas travel ban on the suspects and ordered that the Controller of Immigration and Emigration be notified.
Investigations have reportedly revealed that the funds were used to print 12,000 T-shirts bearing an image of former President Mahinda Rajapaksa on one side and the name of a political party on the other.
According to the CID, the T-shirts were later distributed at a political event held in the Monaragala District.
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