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Chung stresses need to stabilise business environment here ahead of national election
… asks for transparent governance with zero corruption
Reminding that the US and Sri Lanka will have national elections this year, US Ambassador Julie Chung recently emphasised the responsibility on the part of relevant authorities to stabilise the business environment here.
Pointing out a resurgence of interest in two-way investment, Ambassador Chung underscored challenges ahead that will require leadership. She invited Sri Lankan companies to explore ways and means of investing in the US by attending the SelectUSA Investment Summit in June at Baltimore’s national Harbour.
Ambassador Chung said so at Amcham CXO Forum “75 years and Beyond: US– Sri Lankan Business Relations in 2024”
The US Ambassador said: “As leaders, we need to think about both the medium-term and the long-term. In the medium term, we need to create an environment that’s conducive to trade, investment, and business expansion. One with transparent governance, where corruption is no longer tolerated.
In the long-term, we need to raise up a generation of leaders to take our place. There are several ways we should be doing this. Prabhash Subasinghe provides one example: he brought his daughter Saanya into GRI’s marketing leadership. Saanya was educated in the United States, at my alma mater Columbia University, and returned to Sri Lanka to work with GRI. I had the chance to talk with her about six months ago at the U.S. Embassy, where we talked about empowering women leaders. And Harry Jayawardena has similarly recruited his daughter Stasshani to work with him at Aitken Spence.
Stasshani, another impressive up-and-coming leader whom I’ve also met with, is another beneficiary of U.S. training and education. Other leaders are looking to middle ranks to find successors to mentor. Every one of our organizations needs to think more about tomorrow’s leaders. To do that, we need to use our proactive priority-setting power to drive our organizations to identify and train future leaders – both women and men– at all levels. They will, after all, inherit the world we have worked so hard to build.
Commenting on a major US investment in Colombo, Ambassador Chung said: “Just a few months ago, we were proud to announce the International Development Finance Corporation’s investment of $553 million in the Western Container Terminal at the Port of Colombo. Why was this so incredibly important? Beyond the large dollar amount, which is DFC’s second largest exposure in the entire Indo Pacific region; beyond the critical injection of private sector financing this country needs; beyond the confidence building signal it sends to potential investors and financiers that we believe in Sri Lanka’s future, it demonstrates the United States’s continuing commitment to the prosperity of Sri Lanka.”
She also dealt with the challenges posed in the wake of Sri Lanka’s agreement with the IMF. “The commitments required by the IMF as part of the Extended Fund Facility programme call for government reform measures in both tax compliance and combatting corruption. These are hard steps, and not always popular. Sri Lanka has taken difficult measures to put the country on a long-term sustainable footing and comply with the IMF commitments. But the people of Sri Lanka deserve and continue to demand openness, transparency, and accountability from their leaders as the process of reforms moves forward.
The new higher VAT rates have been a hit on the average Sri Lankan and your businesses. We understand that while there may be short term necessary pains, the public deserves to know that such measures are being taken looking at the wholeness of the problem and endemic issues that must be addressed in a structural, sustainable way, fair and transparent to all.
That includes not just raising taxes but eliminating tax loopholes, addressing government inefficiencies, particularly in state owned enterprises. It means digitalizing customs to raise revenue and reduce corruption. Creating predictable customs duties and streamlined processes would encourage importers, who want to import more to Sri Lanka but are worried about the uncertainty in the import process. Unpredictable customs fees discourage importers and limit the amount of customs revenue the Sri Lankan government can collect.
This shifts the burden of tax revenue further onto the shoulders of the people, who can’t bear much more. Earlier this week, I met with the National Chamber of Exporters who relayed some of their challenges – red tape, regulatory challenges, and unpredictability that impact their businesses. Exports and private sector growth will be the engine of recovery, but they need the space and support to thrive. As the largest export market for Sri Lanka, the United States can help be part of the solution.”
She advised the Wickremesinghe-Rajapaksa government on the need for reforms while urging the leadership to be mindful of public concerns. She said: “It’s important that the government of Sri Lanka carry out reforms. But it’s also important to explain those reforms to the people in a clear manner. It makes for slower, but better legislation and reforms. One example is the Online Safety Bill. The Centre for Policy Alternatives reported from a poll earlier this month that more than 70 percent of Sri Lankans were unaware of the Bill before its passage.
When major global tech companies characterize the Bill as “unworkable” and stifling innovation and democracy, instead of actually addressing online crimes, frankly this sends a negative signal in Sri Lanka’s path towards reform and recovery. Previous bills, such as the Personal Data Protection Act, took much longer to craft, but did a better job of taking stakeholder feedback into account. To work on legislation and reforms that will be durable, enforceable, and wise, the Sri Lankan government will need to do better in the future. This will be key to improving the business climate.”
News
CTU: Teacher shortage casts doubt on govt.’s education reforms
By Chaminda Silva
The government’s ambitious plans to overhaul Sri Lanka’s school education system and introduce new curricula could face serious implementation difficulties, with teacher unions warning that a longstanding and severe shortage of teachers remains unresolved.
The warning came as Prime Minister Dr. Harini Amarasuriya announced yesterday that new curricula would be introduced for Grades 2 and 6 next year, while also stating that the government planned to recruit around 30,000 new teachers across the education system by February.
However, the Ceylon Teachers’ Union (CTU) questioned whether the government would be able to provide the teachers required to implement the proposed reforms, claiming that the recruitment process itself had become mired in problems.
CTU General Secretary Joseph Stalin accused the government of making misleading claims about teacher recruitment and said the shortage that had affected schools for more than a year would continue into next year.
“There is currently a severe teacher shortage in the school system,” Stalin told a press conference in Colombo yesterday.
He said the government had previously acknowledged that there were about 46,000 teacher vacancies in the school system, but the figure was later revised to around 36,000.
“Those vacancies have remained unfilled for more than a year and a half. The school system has continued to operate with a severe teacher shortage throughout this period,” he said.
Stalin questioned how the government intended to introduce new curricula while thousands of existing teaching vacancies remained unfilled.
He said the Government had initially announced plans to recruit 23,000 teachers, despite the number of vacancies being significantly higher.
Although a gazette notification, relating to the recruitment had been issued, only around 17,000 applicants had been summoned for the initial round of interviews, he added.
Stalin said interviews were expected to begin in November and that appointments would, therefore, be made only from January onwards.
“If there are more than 36,000 teacher vacancies, the Government has decided to recruit only 23,000 teachers, and only around 17,000 have been called for interviews.
Who will take responsibility for the remaining vacancies?” he asked.
He said the problem was not merely one of numbers but also involved the Government’s recruitment procedure.
According to Stalin, shortcomings and ambiguities in the gazette notification issued for the recruitment examination had contributed to the present crisis.
“We primarily believe that the lack of proper procedures in the gazette notification issued for the recruitment examinations has contributed to this crisis. The ambiguities in the notification itself have led to the recruitment process becoming a major issue,” he said.
The shortage was also affecting the transfer system, Stalin mentioned.
A large number of teachers had been unable to obtain transfers because replacements were not available, with some teachers remaining at the same school for 12 or 13 years, he claimed.
As replacements had not been recruited, such teachers would have to remain at their present schools for another year, he said.
“This is a serious crisis. However, the situation is even more critical for students who are left without teachers,” Stalin said.
He also questioned the Government’s plans to close schools with fewer than 50 students.
“We suspect that this move is to take the teachers from these schools and redeploy them to other schools to fill vacancies there.”
The union’s concerns come at a time when the Government is pushing ahead with a major overhaul of the education system.
Addressing the Badulla District Women’s Conference yesterday, Prime Minister Amarasuriya said the Government would introduce new curricula for Grades 2 and 6 next year as part of its wider education reforms.
She said a new curriculum had already been introduced for Grade 1 this year, while new curricula for Grades 2 and 6 would be introduced over the next two years.
The Prime Minister said the Government was developing a new education system aimed at securing the future of all children, with the emphasis shifting away from producing students, focused solely on examinations.
The Government’s objective was to nurture a generation capable of facing future challenges successfully and confidently, she said.
The Prime Minister also announced that interviews for the recruitment of 17,000 teachers would commence on November 20.
She said approval had also been granted to recruit 2,000 academic staff members for the university system, with that recruitment process already under way.
The Government plans to recruit approximately 30,000 new teachers across the education system by February next year, she said.
A special programme would also be implemented to improve infrastructure facilities in schools, the Prime Minister added.
The contrasting positions highlight a potentially significant gap between the Government’s education reform timetable and the capacity of the existing school system to deliver it.
While the Government has set out a timetable for introducing new curricula and recruiting tens of thousands of teachers, the CTU argues that the existing shortage, delays in recruitment and unresolved transfer problems could leave schools struggling to provide adequate teaching staff when the reforms take effect.
With the Government planning to introduce another round of curriculum changes next year, the ability to fill vacancies in time could, therefore, become a crucial test of whether its broader education reform programme can be implemented as planned.
News
Norochcholai to remain offline for several days after blackout
The Norochcholai coal power plant will remain disconnected from the national grid for several days following Saturday’s countrywide power failure, as authorities continue to follow safety procedures after the incident.
The National System Operator (NSO) said the 810-megawatt plant had been shut down as a precaution after the sudden power outage on October 17 and would not be reconnected to the grid until the necessary safety measures were completed.
The temporary loss of 810 MW of generating capacity would be managed through careful electricity supply arrangements to minimise the impact on consumers over the coming days, the NSO said.
It said the prevailing rainy weather was expected to help sustain hydropower generation at high levels, while a projected decline in electricity demand would further ease pressure on the system.
The countrywide blackout occurred at around 11.43 a.m. on October 17 after a generating unit disconnected from the national grid, creating an imbalance that caused the entire power system to collapse within less than 30 seconds.
Restoration efforts began shortly afterwards. By 12.11 p.m., major hydropower generating units had been brought back online and the power system was restarted simultaneously in four separate sections.
The restoration process was complicated by small-scale power generation facilities that were not under the direct control of the system control centre. However, electricity supplies were progressively restored through the activation of distribution feeders from 12.37 p.m.
By around 3 p.m., power had been restored to essential services, including major hospitals, water treatment plants and the airport.
Grid substations across the country had been reconnected by around 5 p.m., restoring electricity to the majority of consumers, the NSO said.
The operator stressed that the sudden disconnection of a generating unit as a safety measure was a normal occurrence at power plants. However, such a disconnection resulting in a complete collapse of the national power system was not considered normal.
An internal investigation has, therefore, been launched to establish the sequence of events that led to the islandwide outage and determine its underlying causes, the NSO said.
News
President links businessman held with arms to politicians
By Norman Palihawadane
President Anura Kumara Dissanayake yesterday said a businessman, arrested with a caches of firearms, ammunition and hand grenades, had links to a politician, as authorities continued investigations into the seizure.
Addressing a public gathering in Badulla, the President said the suspect was among those being investigated in connection with operations targeting organised crime and that authorities were aware of his political connections.
He also referred to a video footage allegedly showing the suspect firing at people in the Weliweriya area, describing it as an example of the dangerous activities associated with individuals possessing illegal firearms.
The 38-year-old businessman, who is reportedly the owner of a cinema, and a relative of a politician, was arrested following a search conducted by officers of the Colombo District Crime Division at the cinema on Hanwella Road, in the Kirindiwela Police Division, on October 17.
Police said the search had been carried out based on information received by investigators.
The weapons and ammunition seized included two foreign-made pistols, a revolver, a foreign-made repeater firearm and a foreign-made 12-bore firearm.
Police also recovered hundreds of rounds of ammunition, including 398 rounds of 12-bore ammunition, 278 rounds of 9mm ammunition, 49 rounds of .32-calibre ammunition and 3,083 rounds of .22-calibre ammunition, along with two live hand grenades.
The suspect, a resident of the Millathe area, is being questioned as investigations continue.
The Police Media Division said police would seek a detention order to facilitate further questioning of the suspect and advance the investigation.
The Colombo District Crime Division is conducting further investigations into the cache of weapons and the suspect’s alleged activities and connections.
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