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Change catastrophic strategies or face consequences -CB warns Parliament

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MP Kiriella poses a question to Dr. Nandalal Weerasinghe (pic courtesy Parliament)

By Shamindra Ferdinando

Central Bank Governor Dr. Nandalal Weerasinghe has warned political parties represented in Parliament that unless they abandon their ill-conceived strategies, Sri Lanka would have to seek IMF interventions 16 times in the next 20 years.

Dr. Weerasinghe issued the warning at a meeting organised on the intervention of Speaker Mahinda Yapa Abeywardena at the Parliament, on 31 August. This was ahead of the successful conclusion of the Staff-Level talks with the International Monetary Fund (IMF)for a four-year USD 2.9 bn loan facility.

Dr. Weerasinghe said that over the years Sri Lanka had sought IMF’s intervention on 16 occasions and this was the 17th time.

Pointing out that measures that had been taken by the yahapalana government (2016-2019). following agreement with the IMF, was disregarded by those who regained power in 2019/2020, Dr. Weerasinghe said if the government/Opposition reneged on the undertakings, the country would face a similar crisis, in three years.

Dr. Weerasinghe chided political parties for seeking political gains at the expense of the national economy. The government and the Opposition and vice versa repeatedly, made election promises that undermined the national economy, Dr. Weerasinghe said. Those who voted for them ultimately paid a very heavy price, Dr. Weerasinghe added.

Top Central Banker Dr. Weerasinghe, who retired in January 2021, was requested by former President Gotabaya Rajapaksa to succeed Ajith Nivard Cabraal as its Governor in April this year.

Dr. Weerasinghe said that those who obtained IMF assistance promising to rectify their wrongdoings, but continued to do the same.

At the onset of his one-hour long speech, Dr. Weerasinghe, having declared that the situation was so bad the current crisis could be compared with that of Zimbabwe and Lebanon. The CBSL Chief stressed that the per capita income in USD terms had dropped from USD 4,000 to 3,200. Unless tangible measures were taken, the economy could collapse, Dr. Weerasinghe warned, while advising lawmakers how hyperinflation could cause the government to lose control.

Dr. Weerasinghe alleged reckless and irresponsible spending by successive governments against the backdrop of year on year widening budget deficit led to the current crisis. The governments deprived the private sector of the much required funding for investment purposes etc., by utilizing such funds, he said.

The CBSL Chief showed how Parliament repeatedly raised the ceiling on borrowings to facilitate the agendas of the ruling party whoever was at the helm at that time.

Commenting on rapid deterioration of the economy, Dr. Weerasinghe pointed out large scale commercial borrowings that began in 2005 as against concessionary loans secured earlier undermined the very basis of the economy. Imprudent investments of such commercial loans contributed to the current catastrophe, Dr. Weerasinghe said, asserting that commercial borrowings had reached a critical level.

Declaring that he wasn’t making a political statement, Dr. Weerasinghe explained how the Mahaweli project contributed to Sri Lanka’s development, especially saved valuable foreign exchange by enhancing hydro-power generation capacity. Otherwise, Sri Lanka would have been in deeper trouble, Dr. Weerasinghe said, finding fault with successive governments for procuring loans at higher interest rates to further expand the public sector, pay salaries and pensions and other non- productive measures.

Dr. Weerasinghe said that those who had been in power simply secured loans from those ready to give. The reckless project continued as long as Sri Lanka had access to financial markets, Dr. Weerasinghe said, adding that this was interrupted in 2020/2021 when the country lost access to such markets. Dr. Weerasinghe declared that the moment creditors stopped giving us more loans we were bankrupt.

Referring to recurring losses suffered by state enterprises, Dr. Weerasinghe disclosed State Corporation sustained losses amounting to Rs 1 trillion. Addressing Power and Energy Minister Kanchana Wijesekera who was among those present on the occasion, Dr. Weerasinghe said that the lawmaker knew the extreme difficulties in managing the crisis.

Dr. Weerasinghe slammed the previous government for abolishing a range of taxes in the absence of a public campaign. That triggered the unprecedented crisis, Dr. Weerasinghe said, acknowledging Central Banks world over printed money as a temporary measure as happened during the Covid-19 pandemic. However, Sri Lanka continued the practice, the CBSL chief said, comparing the actions of the then government to a person who didn’t want to give up the use of ‘abing’ (opium).

Dr. Weerasinghe said that at the time he took over the Central Bank in April this year, both Bank of Ceylon and People’s Bank had defaulted. The reserves in April amounted to just USD 20 mn and the economy was in tatters, Dr. Weerasinghe said.

Commenting on his immediate predecessor Ajith Nivard Cabraal’s much touted road-map meant for economic recovery didn’t yield expected results. In spite of projected USD 10 bn in terms of fresh funding there was absolutely nothing, Dr. Weerasinghe declared.

The CB Governor strongly defended the declaration he made as regards Sri Lanka’s failure to meet its loan obligations. The declaration was made in the wake of the IMF turning down Sri Lanka’s request for USD 800 mn which was made available due to covid. Sri Lanka was denied that on the basis the country couldn’t have repaid that facility provided to all countries affected by covid-19.

Then having squandered precious USD by fixing Rs at 203 to the dollar, the currency was floated without following proper procedures. That was nothing but a disastrous measure that finally led to street protests and the change of government. Emphasizing the responsibility on the part of the incumbent government to ensure strict implementation of measures currently in place to control expenditure by imposing import restrictions, Dr. Weerasinghe warned that unless the government achieved that there would be a change of government again.

Acknowledging the extreme difficulties experienced by fixed income earners and the poor, Dr. Weerasinghe underscored the pivotal importance of what he called a social security safety net. The IMF expected the government to pay attention to the issue at hand as whatever the proposed reforms they couldn’t be sustained unless the administration looked after those vulnerable groups. If those unable to make ends meet come onto the streets, there would be a bloodbath. Such a scenario would be far more dangerous than the Galle Face protest campaign that forced the change of government in July, Dr. Weerasinghe said.

The CBSL Chief said that he was also concerned about the sustainability of the banking sector. The outspoken official pointed out that with food inflation at over 90 percent sustaining the economic reforms and taking forward the staff level agreement with the IMF to the next level would be a challenge.



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Construction of Accident and Emergency unit at Mannar District General Hospital begins under President’s patronage

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Construction work on the Accident and Emergency Unit at the Mannar District General Hospital commenced this morning (16) under the patronage of President Anura Kumara Dissanayake.

The Accident and Emergency Unit, which is being constructed at a cost of Rs. 600 million with a grant from the Government of India, will be equipped with all modern facilities and will further expand healthcare services for the people of Mannar. Construction is scheduled to be completed in the first quarter of 2028.

Upon completion of the project, the people of Mannar will be able to receive emergency trauma care and other specialised healthcare services without having to travel to Colombo or other major cities. At the same time, the Government has taken steps to provide the Mannar District General Hospital with the medical equipment and staff required to support these services.

President Anura Kumara Dissanayake, who attended the commencement of construction work on the Accident and Emergency Unit, also engaged in a cordial conversation with members of the hospital staff.

Addressing the ceremony held thereafter, Minister of Health and Mass Media Dr. Nalinda Jayatissa said that as the Mannar area, which is expected to make an important contribution to the national economy, develops, this project will help ensure quality healthcare services for its people. The Minister further emphasised that, in creating a “A Thriving Nation – A Beautiful Life”, the Government is committed to ensuring healthy and disease-free lives for all 21.7 million citizens of the country.

Further remarks by Minister of Health and Mass Media Dr. Nalinda Jayatissa

“The Mannar District is an area that is expected to make an important contribution to our national economy. A large number of local and foreign tourists will visit this area both now and in the future.

With the development of transport facilities, Mannar will experience further economic growth. In such a context, upgrading the services of the Mannar hospital will be important in ensuring quality healthcare services for the people of this area as well as those who visit the region.

Accordingly, construction of this Accident and Emergency Unit will be completed and the facility will be made available to the public in the first quarter of 2028. In addition, staff quarters for doctors at the Mannar District General Hospital are being constructed in a four-storey building at a cost of Rs. 243 million. These construction activities are also expected to be completed within one and a half years. Construction of the new Paediatric Unit, being built at a cost of Rs. 230 million, is also expected to commence within this year.

Similarly, the CT scanner that you have been continuously requesting will be provided to you by around February next year. It is worth approximately Rs. 250 million. While these building facilities are being developed, we will also provide the staff required by the hospital. You have also received intern medical officers for the first time in the history of this hospital. Several more intern medical officers will be assigned to you this October. At the same time, steps are currently being taken to address the shortage of specialist medical officers.

On 31 October, we will recruit 2,600 new nurses, and a portion of them will be assigned to this hospital. Personnel required for the allied health professions are also currently undergoing training. Once their training is completed, the services of several of them will be made available to this hospital. In addition, we will recruit 1,100 Public Health Midwives, a portion of whom will also be assigned to this area.

This Government is taking numerous measures to provide people with healthy lives. Through these initiatives, we hope to improve the health and quality of life of the people in this area.

More than Rs. 600 billion has been allocated to the Ministry of Health over the past two years, and the President continuously monitors all its projects. Going beyond that, I am deeply grateful to the President for joining us  today.

We have received the support of the Government of India for this project. I extend my special appreciation to the Government of India, including the Prime Minister, and its people, as well as to the High Commissioner of India and his staff, who have been committed to coordinating these activities and ensuring the success of this project.

Among district hospitals, the Mannar hospital is one with very limited facilities. Despite these shortcomings, I appreciate the dedication of all members of the staff, including the doctors, who remain committed to providing the best possible service to the people. I also consider the President’s visit to be a recognition of your service.

Two years ago, on 21 September 2024, the people of this country gave a clear mandate to create a “A Thriving Nation – A Beautiful Life”. That mandate was further strengthened in November 2024. Under the mandate to create a “A Thriving Nation – A Beautiful Life”, we have been entrusted with the responsibility of ensuring healthy and disease-free lives for all citizens of this country.

Your area of residence, profession, wealth or ethnicity is of no relevance to us in this regard. The Government’s objective is to create a beautiful life through healthy and disease-free living for all 21.7 million citizens of Sri Lanka.”

High Commissioner of India Santosh Jha:

“The agreements for the emergency unit in Mannar and the medical ward complex in Mullaitivu were signed under President Dissanayake’s leadership. I am happy to see these commitments transitioning smoothly into swift implementation.

His Excellency the Prime Minister of India, Shri Narendra Modi, has said that the development assistance extended by India to Sri Lanka comes with a deep sense of responsibility, a duty that one naturally feels for one’s family member.

We remain firmly committed to working closely with the Government of Sri Lanka and the people of Sri Lanka for the well-being and prosperity of all communities across the island. As neighboring countries and close partners, we will continue to walk together this shared path toward lasting progress and development of our peoples.”

Secretary to the Ministry of Health and Mass Media Dr. Anil Jasinghe

“For several decades, injuries and accidents have been the leading cause of hospital admissions in Sri Lanka. As Mannar is geographically somewhat isolated, it is extremely important for the district to have access to quality, free healthcare services without delay.

The assignment of intern medical officers to this hospital commenced this year. Arrangements are also currently underway to purchase a CT scanner for the Mannar District General Hospital. The hospital is expected to receive improved radiology facilities by the end of this year or the beginning of next year.

I must say that, during my 36 years in public service, last year was the only period during which I did not face any financial difficulties in carrying out my duties. The prudent macroeconomic management of the current Government, including President Anura Kumara Dissanayake, has created the fiscal space required to develop the country’s health services.”

Mannar District Bishop Rt. Rev. Gnanapragasam Anthonipillai, Northern Province Governor Nagalingam Vethanayahan, Members of Parliament representing the Mannar District, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retd), Chiefs of the Defence Services, officials of the Ministry of Health, officials of the High Commission of India in Sri Lanka, Consul General of India in Jaffna Sai Murali S. and officials of the Indian Consulate in Jaffna, among others, attended the occasion.

[President’s Media Division]

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Special Cabinet Subcommittee and Officials’ Committee appointed to address El Niño Climate Impact meet

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The Special Cabinet Subcommittee and Officials’ Committee appointed to take necessary measures to address the impact of the El Niño climate phenomenon met for the fifth time at the Presidential Secretariat on Monday (14) afternoon , under the chairmanship of Minister of Environment Dr Dhammika Patabendi.

As the El Niño climate impact is expected to transition from the current dry conditions to wetter weather over the next two months, the committees held an extensive discussion on measures to address the anticipated change in weather conditions.

The committees decided to raise public awareness on potential disasters, including floods and landslides that could occur due to increased rainfall. Attention was also given to conducting disaster preparedness drills to familiarise the public with the appropriate measures to be taken in the event of such emergencies.

It was instructed that initial preparedness drills be conducted in the districts of Kandy, Badulla, Matale and Nuwara Eliya, which are considered vulnerable to landslides and that the necessary measures be taken without delay.

The meeting also decided to implement a public awareness programme through electronic and print media. Discussions were also held on the importance of preparing the public in advance by establishing operational centres at Divisional Secretariat level.

In addition, the committees reviewed the progress of relief measures already being implemented for people affected by the prevailing El Niño conditions, as well as the progress of the planned measures ahead.

Minister of Housing, Construction and Water Supply Dr Susil Ranasinghe, Minister of Plantation and Community Infrastructure Samantha Vidyaratne, Secretary/Convener of the Special Cabinet Subcommittee, Chairman of the Officials’ Committee and Chief of Staff to the President Prabath Chandrakeerthi, Secretary to the Ministry of Agriculture, Livestock, Land and Irrigation D. P. Wickramasinghe, Director General of the Department of Meteorology A. L. K. Wijemanne, Director General of the Disaster Management Centre, Major General Sampath Kotuwegoda (retired), Director General of the National Building Research Organisation Dr Gamini Jayatissa, General Manager of the National Water Supply and Drainage Board Engineer T. Bharatheedasan and officials from the relevant institutions were also present at the meeting.

[President’s Media Division]

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Where is Gnanasara Thera?Police pass buck to court

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Gnanasara Thera

by Norman Palihawadane

Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Aththe Gnanasara Thera’s whereabouts have remained unknown since the Supreme Court, on Monday, annulled a presidential pardon granted to him in 2019.

Prison officers visited the Thera’s temple in Nawala, Rajagiriya, to take steps to return him to prison to serve the unexpired portion of his six-year sentence. However, monks at the temple had reportedly informed the officials that they were unaware of his whereabouts.

Police spokesman ASP F.U. Wootler said a separate court order was required for the police to trace the Thera, or assist in taking him into prison custody. No such order had been issued so far, he claimed.

Meanwhile, sources close to Gnanasara Thera said he was expected to attend a book launch in Colombo tomorrow (17),

The development follows the Supreme Court declaring the 2019 presidential pardon granted to Gnanasara Thera, by then President Maithripala Sirisena, null and void.

A three-member Supreme Court bench held that the pardon had been granted arbitrarily and violated public trust and principles of natural justice.

Gnanasara Thera had been serving a six-year prison sentence for contempt of court when the then President Sirisena granted him the pardon, in May, 2019. He had served only about nine months of the sentence at the time.

With the pardon annulled, the original sentence remains in force and the Thera is now required to serve the balance of his six-year term.

The Supreme Court ruling has raised questions over the procedure to be followed to return him to prison, with police and prison authorities yet to take custody of him.

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