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Chung stresses need to stabilise business environment here ahead of national election

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Julie Chung

… 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.”



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Prison officers urge Justice Minister to protect their colleague who opened fire

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Coffins of prison staff killed in Monday's clashes at the Negombo Prison, placed at Prison headquarters, Welikada (pic by Nishan S. Priyantha)

Prison officers yesterday requested Justice and National Integration Minister Harshana Nanayakkara to protect their colleague who opened fire at the Negombo Prison during Monday’s riot.

They made that request when the Minister visited the Welikada Prison to pay his last respects to seven officers killed by inmates during the clashes. Soon thereafter, the National Hospital reported that another prison officer had succumbed to his injuries.

The Minister was told that the officer had opened fire through a small opening in the main door to prevent the rioting prisoners from escaping.

The Opposition has demanded to know who ordered the prisons officer to fire. The concerned officer’s colleagues told the Minister that had a breakout occurred the inmates would have posed a serious threat to the public.

Altogether, authorities transferred 1,033 inmates from Negombo to other prisons. Among them was Katuwellegama Suresh, who is alleged to have spearheaded Sunday’s attack on a group of prisoners that led to the following day’s clashes.

Executive Director of the Committee for Protecting the Rights of Prisons, Attorney-at-Law Senaka Perera told The Island that some of the transferred inmates had been mercilessly assaulted in other prisons.

Sources familiar with the situation at prisons said that they were able to accommodate between 11,000 to 12,000 inmates but over 40,000, both convicted and suspects were held in the country’s prisons. About 30,000 of them are suspects. Due to severe overcrowding, prison management had been compelled to accommodate both the convicts and suspects at the Negombo Remand Prison, sources said, adding that the clashes had erupted between the two groups.

Those who had been convicted were accused by the other group of passing information to the previous prison management resulting in elimination of narcotics and other banned items in the prison, sources said. They went on the offensive after both the administrator and the second-in-command were transferred separately and the authorities ignored the volatile situation and proceeded with routine work on Monday.

Sources said that the authorities were yet to release the exact number of convicts and suspects killed and wounded during clashes between the two groups and with prison staff. According to the Health and Media Ministry the total number of persons admitted to the National Hospital, following the incidents, were 29. Of them, 14 were inmates. The Ministry said that of the 29, 12 were in the intensive care unit.

Prof. Prathiba Mahanamahewa told The Island that the overcrowding of prisons should be carefully examined, taking into consideration that even some innocent people were held in various prisons. Poisons, Opium and Dangerous Drugs (Amendment) Act of No 41 of 2022 was being exploited and misused by law enforcement authorities to frame and arrest people. In terms of this law, those who had been framed couldn’t secure bail from the High Court but had to seek the intervention of the Court of Appeal. The lawyer explained how Section 54 of the Act was being used indiscriminately against people.

According to Mahanamahewa about 80 percent of those suspects held were on narcotic charges.

By Shamindra Ferdinando

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Negombo Prison riot: Ensuring protection of prisoners fundamental responsibility of the state – UN

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Marc-André Franche

Expressing concern over the death of prisoners, both convicts and suspects, as well as correctional officers, the United Nations Resident Coordinator in Sri Lanka, Marc-André Franche has emphasised that ensuring that protection is a fundamental responsibility of the State.

Twenty prisoners and seven correctional officers were killed in clashes on Sunday and Monday. Over 100 received injuries.

Issuing a statement, the United Nations extended its condolences to the families affected by the tragedy and wished a speedy recovery to those injured.

Underscoring prison officials carried out challenging duties in service of the State, and the general public, the UN Resident Coordinator said that their loss was deeply felt. The UN also stressed that inmates who died, or were injured, were under the care and protection of the State, emphasising that both correctional officers and prisoners require greater protection. Ensuring that protection is a fundamental responsibility of the State, he said.

The UN statement highlighted the urgent need for continued investment and reform within Sri Lanka’s prison system.

It pointed to longstanding challenges, including overcrowding, outdated practices and poor conditions in detention facilities, which remain concerns in prison systems both in Sri Lanka and globally.

The UN said Sri Lanka’s engagement with international human rights standards, relating to the treatment, safety and wellbeing of persons deprived of liberty, provides an important framework for addressing these issues.

The United Nations welcomed the establishment of an independent committee to investigate the circumstances surrounding the prison violence and emphasised that the committee’s findings should lead to concrete and lasting improvements in detention conditions.

The UN also reaffirmed its commitment to supporting Sri Lanka through technical cooperation aimed at improving prison security, strengthening detention conditions, and supporting the welfare of correctional personnel.

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Govt. considers banning or restricting social media for children under 16: PM

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Harini Amarasuriya

The government was considering imposing restrictions or a possible ban on social media access for children under 16, Prime Minister Harini Amarasuriya told Parliament yesterday (8).

Responding to a question raised by SJB Gampaha District MP Harshana Rajakaruna, the Prime Minister said discussions with relevant stakeholders were currently underway to assess the impact of social media use on children and explore measures to ensure their safety.

She said the consultations, led by the Ministry of Women and Child Affairs, were focussed on the social, mental and health effects of excessive social media use, digital security concerns and global developments in regulating online platforms.

The Prime Minister said the National Child Protection Authority and the National Childcare and Protection Society were also engaged in discussions on the proposal, while steps were being taken to draft national guidelines on restricting access to social media platforms for children below 16 years.

She added that awareness programmes would also be introduced to safeguard children’s mental and physical wellbeing in an increasingly digital environment.

According to the Prime Minister, several government institutions, including the Ministries of Women and Child Affairs, Education, Higher Education and Vocational Education, Health, Mass Media and Digital Economy, along with the Sri Lanka Police, Department of Probation and Child Care Services and the National Child Protection Authority, were collaborating on the initiative.

The PM said the government, together with World Vision, was implementing a programme aimed at addressing mobile phone addiction among children under 18, which had already shown positive results.

Prime Minister Amarasuriya said the government’s focus was to strike a balance between protecting children from potential online harms and ensuring they benefit from digital opportunities.

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