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CB Governor upbeat about taking country’s loan request to IMF Board in Jan ’23 if it misses December chance

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By Hiran H. Senewiratne

Central Bank Governor Dr. Nandalal Weerasinghe says Sri Lanka is expecting to go to the IMF Board in January 2023 if it misses the December window and is also confident of getting assurance from bilateral creditors soon.

“Most probably meeting the IMF target is too optimistic and satisfactory so far but if we miss that we still have time till January,” Governor Dr. Weerasinghe told the Bank’s monthly monetary policy review meeting yesterday.

The need of the hour was for Sri Lanka to secure assurances from its bilateral creditors in the next couple of weeks, he said. “We are very confident about it considering the manner in which the discussions are progressing,” the Governor said.

It was quite encouraging that bilateral creditors including Paris Club, India, and China formed themselves into an ad-hoc creditor platform and give financial assurances before December 2022, Dr. Weerasinghe said.

Amidst those developments, Sri Lanka also had to complete a series of prior actions to get IMF Board level approval, which was ofutmost importance at this juncture, he said.

“Sri Lanka has already raised taxes and energy prices, and presented a budget for 2023,” the Governor said.

“Although reports claim that the IMF board will go on vacation in December and they will continue their work for at least three days a week as they have a lot on their agenda,” he said.

Sri Lanka has gone to the IMF 16 times due to its soft-peg but managed to avoid default as the country did not have market access to borrow large volumes of foreign debt, he added.Further, the Central Bank money printing had decreased from Rs 341 billion in 2021 to Rs 47 billion between January and October this year, which was a drastic decline, the Governor added.



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Sajith warns country is being dragged into authoritarian rule 

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Sajith Premadasa

Opposition and SJB Leader Sajith Premadasa has alleged that the current government is attempting to suppress freedom of expression and media freedom to lead the country towards authoritarian rule.

In a video message on Thursday (25), Premadasa said that in a democratic country, the four main pillars safeguarding democracy are the legislature, the executive, the judiciary, and the independent media, but, at present, the government is using the police to violate both the democratic rights of the people and the rights of police officers themselves.

He said that the government is working to establish a police state that deprives citizens of their right to access truthful information.

“For democracy to be protected, media freedom must be safeguarded, and space must be given to independent media. Instead, the government is interfering with the independent media process, using the police to suppress and intimidate independent media,” he said.

He noted that even when independent media present their views based on reason, facts, and evidence, the government attempts to suppress them. Such actions, he said, amount to turning a democratic country into a police state. “Do not suppress the voice of the silent majority, the independent media,” he urged.

Premadasa emphasised that independent media represent the voice of the silent majority in the country and must not be suppressed.

“Media repression is a step towards authoritarian rule, and the people did not give their mandate to create an authoritarian regime or a police state. If the government attempts to abolish democratic rights, the Samagi Jana Balawegaya will stand as the opposition against it,” he said.

The Opposition Leader further alleged that the government was interfering with police independence, stating, “Political interference has undermined the independence of the police, making it impossible for them to serve impartially. Suppressing freedom of expression is an attempt to lead the country towards authoritarian rule.”

Premadasa pointed out that the media has the right to reveal the truth, and interfering with that right is a violation of the rights of 22 million citizens.

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Wholesale mafia blamed for unusually high vegetable prices  

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Vegetable prices at the Peliyagoda Manning Wholesale Market surged to unusually high levels yesterday (26), raising concerns among consumers as the festive season drives up demand. The situation is expected to persist over the next few days, a spokesman for the Manning Market told The Island.

He said a sharp increase in the number of buyers visiting the wholesale market, ahead of upcoming festivities, had resulted in a sudden spike in demand, prompting wholesale traders to raise prices significantly. The price hikes have affected a wide range of commonly consumed vegetables, placing additional pressure on household budgets.

According to market sources, the wholesale price of beans climbed to Rs. 1,100 per kilogram, while capsicum soared to Rs. 2,000 per kilogram. Green chillies were selling at around Rs. 1,600 per kilogram. Prices of other vegetables, including beetroot, brinjal (eggplant), tomatoes, bitter gourd, snake gourd and knolkhol, also recorded unusually high increases.

The spokesman alleged that despite the steep rise in prices, vegetable farmers have not benefited from the increases. Instead, he claimed that a group of traders, who effectively control operations at the wholesale market, are arbitrarily inflating prices to maximise profits.

He warned that if the relevant authorities fail to intervene promptly to curb these practices, vegetable prices could escalate further during the peak festive period. Such a trend, he said, would disproportionately benefit a small group of middlemen while leaving consumers to bear the brunt of higher food costs.

By Kamal Bogoda ✍️

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Cyclone-damaged Hakgala Botanical Garden reopened with safety measures

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Hakgala Botanical Garden

The Hakgala National Botanical Garden, which was closed in the aftermath of Cyclone Ditwah, has been reopened to tourists from yesterday, the Ministry of Environment indicated.

The Ministry said the reopening was carried out in accordance with recommendations and guidelines issued by the National Building Research Organisation (NBRO) and the DisasterManagement Centre (DMC) after safety assessments were completed.

However, due to the identification of hazardous ground conditions, several areas, within the garden, have been temporarily restricted. These include the pond area, near the main entrance, and access roads leading towards the forest park where potential risks were observed. Warning signs have been installed to prevent visitors from entering these zones.

To ensure the safety and convenience of both local and foreign visitors, the garden’s management has introduced a special assistance programme, with staff deployed to guide and support tourists.

The Hakgala Botanical Garden was closed as a precautionary measure during the disaster situation triggered by Cyclone Ditwah. The Ministry noted that the garden has now been safely reopened, within a short period, following remedial measures and inspections, allowing visitors to resume access while maintaining necessary safety precautions.

By Sujeewa Thathsara ✍️

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