Connect with us

News

CORRECT COLLECTIVE ACTION ESSENTIAL TO SAVE SRI LANKA FROM SEVERE CRISIS

Published

on

by PROF. TISSA VITARANA

Sri Lanka is facing multiple crises, worst of all a severe economic crisis that can end in bankruptcy. But some Government policy makers are acting as if this is just a hiccup that will pass away and needs no properly targeted drastic action.

For some strange reason the people have not been informed of the gravity of the situation and that a period of austerity with belt- tightening by the whole nation is necessary. Nearly all countries, rich and poor, big and small are faced with this situation. So it is nothing to be ashamed off.

In fact the obtaining of the country’s requirement of vaccines, amid severe competition, was an achievement (though I would have been happier if the mRNA vaccines like Pfizer were left out).The Government policy seems to rely almost entirely on the vaccination programme.

It would appear that the expectation is that if nearly everybody is vaccinated the spread of the disease will also end. But this is not the case as those vaccinated can acquire the infection and also transmitted to others. The vaccination only prevents severe disease and death of the vaccinated individual.

Therefore it is essential that the government strictly enforces the observance of the epidemiological health rules (constant wearing of a good mask, the observance of social distancing, the constant washing of hands well with soap and water if anyone touches an object handled by any other person, and the avoidance of crowds by all. This may need the setting up of Covid-19 committees at village level which can acquire the necessary know how and see that the rules are enforced.

A clear plan of action to address this entire situation and which rallies the whole nation is required. The enforcement of the health rules should be given equal or higher priority in the total program.

Since 1977, after nearly 44 years of a neoliberal economy (where the regulation is by market forces which increase imports and the profit of the super-rich, without providing the basic needs of the people) is the main cause of the crisis.

The cost of imports far outstrips the income from exports, leading to a huge foreign trade imbalance. The drop of dollar income from tourism and expatriate labour due to the Covid-19 pandemic has aggravated the situation. The country has been brought into a situation where our foreign reserves are down to less than one billion US dollars (USD), from an earlier average of USD 7 to 8 billion.

This is not enough to buy our needs from abroad for even one month, nor to repay the accumulated loans acquired mainly after 1977 which amounts to about USD 6 billion per year. The internationally recognized Fitch rating has brought their assessment of our economy down to CC (in a scale that extends from AAA to single C).

Thus as we are rated as being close to bankruptcy and no foreign investors can be expected to come here due to the high risk. Therefore we are forced to borrow short term loans at high interest, specially swaps. Sri Lanka is caught in a foreign “debt trap” and is fast running out of USD to buy even essentials like food and medicines from abroad. The lack of dollars will lead to a severe shortage of essentials. The result will be racketeering and high prices – a black market. This will send prices up further.

Within the country the economic situation is extremely bad and specially people in the villages and the urban slums are suffering terribly. Within Sri Lanka 60% of our population is living in poverty. Hunger is widespread and many live on one meal a day. The malnutrition level has gone up to 18.3% (which means that out of five children who are five years of age one is suffering from malnutrition). Not only will the body and mental development of these malnourished children be badly affected, it can have some adverse impact on the entire future generation.

A significant section of the future generation will be mentally deficient, in addition to being short and thin and may behave abnormally. There may be an increase of crime and misbehavior. This trend has already appeared among a significant section of the present younger generation (who have lost their jobs, and become drug addicts as well as part of the underworld).

It is sad to see intelligent and skilled youth queuing up to obtain passports and visas to go abroad, at a time when we need their skills and energy to develop our country. We can ill-afford this brain drain. My fear is that if the economic and social situation deteriorates further, employed professionals too may join this queue.

How do we prevent or minimize these unfortunate trends? The question asked is how long will this Covid-19 pandemic last. On the basis of experience with past pandemics and epidemics, which have generally existed in epidemic form for two or three years, they have then become milder routine infections like the common cold, or influenza. The appearance and increase of herd immunity contributes to the above change. It is my hope that with Covid -19 too this will be the case.

With regard to the repayment of our loans as a country which has been badly hit by the Covid-19 pandemic as well as the global economic crisis we are entitled to re-negotiate and restructure the repayment of our sovereign debt. Accordingly we should ask for a period (say about five years) where we do not re pay our debt to the creditors. This is to enable us to bring about the requisite changes of the policies that will result in sustainable development. During this period we can ensure that our people obtain their essential needs and their suffering be minimized.

The welfare state (free health, free education, allowances to the needy etc.) must not only be properly implemented during this period but also be sustained in the future. Our dependence on loans can be minimized by ensuring that the haves also take a significant part of the burden. The tax rate in Sri Lanka, both personal (14%) and corporate (18%) is one of the lowest in the world. This must be increased to well above the upper limit of tax charged in countries of Europe (35-40%).



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Gold tops $5,000 for first time ever, adding to historic rally

Published

on

By

[pic BBC]

The price of gold has risen above $5,000 (£3,659) an ounce for the first time, extending a historic rally that saw the precious metal jump by more than 60% in 2025.

It comes as tensions between the US and NATO over Greenland have added to growing concerns about financial and geopolitical uncertainty.

US President Donald Trump’s trade policies have also worried markets. On Saturday he threatened to impose a 100% tariff on Canada if it strikes a trade deal with China.

Gold and other precious metals are seen as a so-called safe-haven assets that investors buy in times of uncertainty.

Demand for gold has also been driven by a range of other factors including higher-than-usual inflation, the weak US dollar, buying by central banks around the world and as the US Federal Reserve is expected to cut interest rates again this year.

Wars in Ukraine and Gaza, as well as Washington seizing Venezuelan President Nicolás Maduro, have also helped push up the price of gold.

On Friday, silver topped $100 an ounce for the first time, building on its almost 150% rise last year.

[BBC]

Continue Reading

News

Auditor General issue acid test for newly constituted CC, says former COPE Chief

Published

on

Charitha

SJB Working Committee member and ex-SLPP lawmaker Charitha Herath says that all eyes are on the newly constituted Constitutional Council (CC) as to how it will handle the dispute between President Anura Kumara Dissanayake, and the previous CC, over the appointment of Auditor General (AG).

The former parliamentarian said so in response to The Island query yesterday (25). In terms of the Constitution, Prime Minister Dr. Harini Amarasuriya and Opposition Leader Sajith Premadasa last week agreed on the appointment of former civil servant Austin Fernando, Professor Wasantha Seneviratne and Ranjith Ariyaratne as non-MP members of the CC.

They replaced former Ministry Secretary Dr. Prathap Ramanujam, former Chairperson of the Sri Lanka Medical Association Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne of the University of Colombo. Pointing out that they rejected the President’s nominees for the AG’s post on several occasions, Herath emphasised the pivotal importance of the appointment of a person with impeccable credentials.

The other CC members are the Prime Minister, Speaker Dr. Jagath Wickremaratne (Chairman), the Opposition Leader, the President’s nominee Bimal Rathnayake and five persons appointed by the President, upon being nominated as follows: one MP nominated by agreement of the majority of the MPs representing the Government (Aboobucker Athambawa, MP), one MP nominated by agreement of the majority of the Members of Parliament of the political party, or independent group, to which the Leader of the Opposition belongs (Ajith P. Perera, MP), and one MP nominated by agreement of the Members of Parliament other than those representing the Government and those belonging to the political party or independent group to which the Leader of the Opposition belongs, and appointed by the President ( Sivagnanam Shritharan, MP.)

The present CC was established on October 31, 2022 in terms of the 21st Amendment to the Constitution. The Attorney General heads the National Audit Office (NAO). One-time COPE Chief said that it would be the responsibility of the government to ensure the integrity of the NAO.

Chulantha Wickramaratne, who served as AG for a period of six years, retired in April 2025. Following his retirement, President Dissanayake nominated H.T.P. Chandana, an audit officer at the Ceylon Petroleum Corporation as the AG. The CC rejected that nomination. Subsequently, President Dissanayake appointed the next senior-most official at the NAO Dharmapala Gammanpila as Acting Auditor General for a period of six months. Then, the President nominated Senior Deputy Auditor General L.S.I. Jayarathne to serve in an acting capacity, but her nomination, too, was also rejected. Many an eyebrow was raised when the President nominated O.R. Rajasinghe, the Internal Audit Director of the Sri Lanka Army for the top post. That nomination too was rejected. As a result, the vital position remains vacant since 07 December, 2025.

Herath said that the government was in a bind over the Auditor General’s appointment and the disgraceful campaign launched against Attorney General Parinda Ranasinghe, Jr, PC.

The ex-lawmaker said that JVP/NPP loyalists masquerading as journalists and civil activists had launched the protest against the Attorney General. Herath said that the decision to send Deputy Secretary General of Parliament Chaminda Kularatne, on compulsory leave, too, was a matter of serious concern.

Herath said: “This is the same government that campaigned strongly on non-interference, institutional independence, and respect for the rule of law—principles they used to criticise every previous administration. Now, they appear to be doing exactly what they once opposed, only more openly. If this pattern continues, these undemocratic actions will eventually lead to their own downfall.”

BASL in late December, 2025 urged President Dissanayake and others, including the Opposition Leader, to consult civil society and professional bodies, including them, before the appointment of civil society representatives.

Herath said that the newly constituted CC would face its first acid test when it addressed the Auditor General issue.

by Shamindra Ferdinando

Continue Reading

News

Easter Sunday carnage: Campaigners for justice ask govt. to have suicide bomber’s wife extradited

Published

on

A Catholic Church–backed organisation, Just for Justice, has called on the government to immediately fast-track the extradition of Pulasthini Mahendran, also known as Sarah Jasmine, who has been linked to the 2019 Easter Sunday terror attacks.

Addressing a press conference at the Centre for Society and Religion in Maradana last week, Fr. Rohan Silva said Mahendran should be brought back to Sri Lanka without delay to enable investigators to uncover the identities of those who masterminded the attacks, which claimed the lives of more than 275 people and injured more than 500.

Mahendran, who now reportedly goes by the name Sarah Jasmine, is the wife of Atchchi Muhammadu Muhammadu Hastun, one of the suicide bombers who attacked St. Sebastian’s Church, in Katuwapitiya, in April 2019.

Fr. Silva referred to a recent statement made by Minister of Public Security Ananda Wijepala, in Parliament, that information uncovered during investigations indicated that Mahendran was not dead. The Minister also told Parliament that there was no indication she was currently in India, but added that the government could secure her extradition if the need arose.

“We tell the Minister and the government that there is an urgent need,” Fr. Silva said. “She must be brought back so that investigators can obtain details about the masterminds of the attacks.”

According to Fr. Silva, repeated efforts had been made to obstruct investigations by promoting the claim that Mahendran died in a suicide blast at a safe house in Sainthamaruthu on April 26, 2019, days after the Easter attacks, despite what he described as evidence suggesting otherwise.

Initial reports stated that 16 people were killed in the Sainthamaruthu explosion. However, the figure was later revised to 17 when police reported the incident to court on April 30, 2019, and informed the media that Mahendran was among the dead.

 “It is our belief that those who masterminded and orchestrated the terror attacks wanted to remove Jasmine to prevent evidence being extracted from her,” Fr. Silva said. He added that there had long been suspicions that she was alive and had been taken to India or another country.

Fr. Silva questioned the government’s commitment to uncovering the truth, noting that despite the Minister’s statement in Parliament, no steps had been taken to bring Mahendran back.

“We have doubts whether this delay is due to conflicts of interest among investigators or those who direct them,” he said. “This government came to power promising impartial and expedited investigations into the Easter attacks and justice for the victims. Now, 81 weeks have passed, and we demand that the government deliver on those promises.”

by Norman Palihawadane

Continue Reading

Trending