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Bankrupt Sri Lanka’s inflation dips to 66 percent

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By Amal Jayasinghe

Inflation in crisis-hit Sri Lanka dipped marginally for the first time in 12 months but prices were still an eye-watering 66 percent higher than a year ago, official data showed Monday.

The island nation of 22 million people has suffered months of extreme economic hardship with severe shortages of essentials including food, fuel and medicines.The Department of Census and Statistics data showed October inflation was nearly four percentage points lower than the record 69.8 percent in September.

Food inflation which had also reached a record high for the 12th consecutive month in September at 94.9 percent moderated to 85.6 percent in October.The department did not give reasons for the slowdown in inflation, but authorities had reduced fuel prices twice in October, cutting prices by 20 percent.However, the price of petrol is still double the amount before the start of the crisis late last year, while diesel — used commonly for public transport — is still three and a half times more.

Sharp price increases for both food and fuel has led to a drop in demand and queues for petrol and diesel and cooking gas have sharply reduced in recent weeks.The World Bank has warned that the economy could shrink by 9.2 percent this year, worse than the 8.7 percent contraction the central bank of Sri Lanka had forecasted.An unprecedented downturn forced the government to default on its $51 billion foreign debt in April and go to the International Monetary Fund (IMF) for a bailout.

Blackouts, chronic fuel shortages and high prices triggered months of political unrest, ultimately forcing the president Gotabaya Rajapaksa to flee the country and resign in July. The IMF has tentatively approved a four-year, $2.9 billion bailout to help Sri Lanka reorganise its finances, subject to an agreement with its creditors.It had also asked the government to contain spiralling inflation and address corruption as part of efforts to salvage the troubled economy.



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FSP complains of irregularities in a Guinness World Record event held in Sri Lanka

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FSP Secretary Duminda Nagamuwa speaking to the media outside the CIABOC yesterday

The Jana Aragala Sandhanaya yesterday lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), calling for an investigation into Deputy Minister Sundaralingam Pradeep over alleged irregularities related to a Guinness World Record event held in Sri Lanka.

The organisation alleged that state patronage had been extended to a private company for the event and that large sums of money had been collected from around 5,000 families of participating students.

Speaking to the media, after submitting the complaint, Jana Aragala Sandhanaya National Executive Council member and Frontline Socialist Party (FSP) Secretary, Duminda Nagamuwa, alleged that the government had promoted the Bharatanatyam workshop, held on June 14, as an event that secured a Guinness World Record for the participation of the largest number of students.

He said a government politician had taken the lead in organising the event, attended by Deputy Minister Mahinda Jayasinghe.

Nagamuwa questioned the decision to provide state support for an event organised by a private entity, claiming that the Guinness certificate issued for the achievement had been awarded not to Sri Lanka or a state institution, but to a company.

“Why did the government provide state patronage to a private institution’s programme?” he asked.

He alleged that each of the approximately 5,000 participating students had paid Rs. 5,000, resulting in the collection of a substantial amount of money. He claimed that parents were also asked to pay additional amounts of Rs. 3,450 for logos and Rs. 2,350 for certificates.

Nagamuwa alleged that many families, from economically disadvantaged backgrounds, had incurred heavy expenses travelling to Colombo and staying there for several days for the event, with some families spending around Rs. 30,000 each.

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Opposition MPs sign motion demanding debate on prolonged failure to fill vacancies in superior courts

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Opposition MPs yesterday signed a motion demanding  an adjournment debate in Parliament on the prolonged failure to fill vacancies in Sri Lanka’s superior courts.

The motion, submitted under Standing Order 83(1), calls for a debate on the implications of leaving more than eight vacancies in the Supreme Court and the Court of Appeal unfilled for over six months.

The Opposition said the proposed debate would examine the impact of the vacancies on the administration of justice, the rule of law, the protection of fundamental rights and public access to justice, while urging the authorities to expedite appointments to the vacant posts.

The motion, bearing the signatures of Opposition MPs, is to be forwarded to Speaker Dr. Jagath Wickramaratne, for approval, to schedule the debate.

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Another Lankan desperado deported from Malaysia arrested at BIA

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The suspect being escorted out of the airport by police

Suranga Sanjeewa Karunaratne, alias ‘Matiya’, an alleged underworld gunman linked to organised crime figure Kehelbaddara Padme, was arrested on arrival at the Bandaranaike International Airport in the early hours yesterday.

Police said the suspect, a resident of Kotugoda, Yagodamulla, had been detained by Malaysian authorities and deported to Sri Lanka. Officers of the CID took him into custody upon his arrival.

Investigators said an Interpol Red Notice had been issued against the suspect.

Karunaratne is wanted in connection with the fatal shooting, near the Gampaha Magistrate’s Court, in July, 2022, in which alleged organised criminal ‘Paspodda’ was killed and several others sustained injuries.

Following preliminary questioning by the CID, the suspect was handed over to the Western Province North Crimes Division for further investigations. Police said a 72-hour detention order had been obtained to facilitate further inquiries.

by Norman Palihawadane ✍️

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