News
CBSL Governor calls for political stability to rescue economy
… warns he will have to resign if chaos continues
Extended power cuts possible if political instabilty persists
Curtailment of expenditure on imports necessary for economic recovery
Sri Lankan economy would collapse if political stability was not restored soon, the Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe, said yesterday.
Dr. Weerasinghe warned that he would be left with no alternative but to resign within two weeks if political instability continued. He warned that the prevailing political instability, acts of violence and the failure on the part of the State to maintain law and order had made it harder for Sri Lanka to overcome the current economic crisis.
Political stability was essential for economic recovery, said the CBSL chief, adding that when he assumed duties as the Governor, it was thought that the economy could be stabilised soon, but the unfolding events would put paid to efforts that the Central Bank and the Finance Ministry were making to straighten up the economy.
Dr. Weerasinghe said that when he assumed duties one month back, he expected political stability to be restored within two weeks, and they would be able to implement their economic programme.
If all political parties did not come together, no one would be able to rescue the c economy, whoever held the post of the Central Bank Governor, Dr. Weerasinghe said.
“As the Central Bank, we have to state that if such a stable condition cannot be achieved within a very short period of time, the existing situation would worsen further,” he said.
He also said that there was so much that the Central Bank could do and that a solution to the crisis could be achieved by only policy makers.
“There is a serious shortage of foreign exchange in the country and already there is a scarcity of some essential items. Although fuel and gas stocks are available to some extent and power cuts are limited to around three hours, things can change for the worse soon,” he warned.
“If this situation continues even for another two or three days, there will be 10-12-hour power cuts again. We will see a severer shortage of fuel. We will see longer queues for cooking gas. This will lead to more protests and social unrest. We at the Central Bank hope there will be political stability soon so that we will be able to implement our policies and find some foreign exchange to address these current shortages of essentials.”
Dr. Weerasinghe said that Sri Lanka needed a stable government, a Cabinet, a functioning parliament, a prime minister and a finance minister to reach an agreement with the IMF.
“Without a stable administration that is respected by the people, it is very difficult for us to make any progress. This is why I have been repeating the urgent need for a stable administration and law and order in the country so that everyone can engage in their normal day-to-day activity,” he said.
The President and all the Members of Parliament have to come together and find a workable solution soon without placing the country at a bigger risk, he said. “Otherwise, there will be no progress and everyone will have to undergo more suffering.”
Dr. Weerasinghe also urged people to reduce the consumption of imports. If someone needs to buy a mobile phone, a TV or a refrigerator, he or she should wait a month or two, he said. “There are many items in showrooms despite import restrictions. They are also trying to make undue profits. I think people should cut down on these purchases. If we don’t spend money on these, we will have more money for essentials. Also, vendors will have to reduce prices. Remember what happened to cement; traders stocked up and jacked up prices, but because people didn’t buy, cement prices plummeted.”
Several ex-Cabinet ministers questioned; Ranil, Sajith, too likely to be summoned
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has initiated an inquiry into the shifting of the Agriculture Ministry situated at Rajamalwatte, to a building belonging to the D. P. Jayasinghe Group of Companies, at Rajagiriya, during the Yahapalana government.
The building was rented for a five-year period at a cost of over Rs 1 bn by the yahapalana government within months after the then President Maithripala Sirisena declared opened the 10-storey building complex.
The CIABOC yesterday morning recorded former yahapalana minister Gayantha Karunatilleke’s statement in connection with the investigation. Later in the day, CIABOC recorded the statement of SJB General Secretary Ranjith Maddumabanadara. Earlier CIABOC summoned former ministers Thalatha Atukorale, Wajira Abeywardena and Lakshman Kiriella. At the time of the finalisation of the deal, KIriella was in the UNP.
Sources said that former PM and President Ranil Wickremesinghe, too, was likely to be questioned in this regard. Responding to The Island queries, sources pointed out even SJB leader Sajith Premadasa was expected to be questioned.
The then Speaker Karu Jayasuriya is on record as having said that the building was rented in keeping with a decision taken by the government and not Parliament.
The UNP-SLFP coalition shifted the Agriculture Ministry to accommodate 16 Sectoral Oversight Committees therein.
Although the government paid as much as Rs. 21.5 mn monthly rent to D.P.A. Jayasinghe Company, the Agriculture Ministry failed to move in for over a year. The then Agriculture Minister Duminda Dissanayake sought Cabinet approval on Dec 1, 2015 to rent the building.
According to inquiries conducted earlier by the Presidential Commission appointed to probe state sector corruption, the Agriculture Ministry sought Cabinet approval for a new building after the then Prime Minister Wickremesinghe submitted a cabinet proposal on 21 September, 2015, to use the Agriculture Ministry building for Parliament’s sectoral oversight committees.
PM Wickremesinghe’s Secretary Saman Ekanayake has told the Commission that public funds could have been saved if the several vacant floors of Suhurupaya belonging to the Defence Ministry had been made available to the Agriculture Ministry.
By Shamindra Ferdinando ✍️
Railway sources said that the damages caused to railway tracks could be more than USD 300 mn.
According to UNDP Rapid Crisis Assessment Sri Lanka’s railroad system, over 278 km of railways were exposed to cyclone-related flooding, including 35 railroad bridges nationwide. This figure reflects flooding only, but other hazards (such as localised debris, landslides, or damage to a single bridge) can also disrupt operations, meaning that even relatively small obstructions can render long stretches of railway non-operational. Like road exposure, railway exposure limits mobility and the capacity of affected populations to access key services and infrastructure.
At the level of divisional secretariats, Colombo and Thimbirigasyaya in Colombo District, Ja Ela in Gampaha District, as well as Mannar Town and Nanaddan in Mannar District all registered over 10 km of exposed railways each.
Commissioner-General of Essential Services B.K. Prabath Chandrakeerthi is on record as having said that only 478 kilometers of Sri Lanka’s 1,593-km railway network were currently usable following extensive damage caused by the recent cyclone.
Under Secretary of State for Political Affairs Allison Hooker arrived in Colombo yesterday (11) to underscore US interest in defence, trade and maritime security in line with their Indo-Pacific strategy.
The US embassy here issued the following statement: “Under Secretary Hooker will meet with Sri Lankan counterparts to discuss a wide range of bilateral issues, focused on deepening economic and commercial ties, strengthening defence cooperation, and supporting Sri Lanka’s economic and maritime sovereignty.
The United States and Sri Lanka share a strong and enduring partnership rooted in our mutual commitment to regional security, economic growth, and prosperity for our peoples. Through close cooperation on defence, trade, and maritime security, we are working together to advance a free, open, and resilient Indo-Pacific region.
As we continue to build on our strategic partnership, the United States also stands with the people of Sri Lanka as they respond to the devastating impacts of Cyclone Ditwah. We remain committed to working together to address both immediate challenges and long-term opportunities for our two nations, reflecting our ongoing commitment to the U.S.-Sri Lanka partnership.”
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