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Gammanpila says country is in ‘debt trap’

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‘Revival of tourism and foreign remittances not sufficient to overcome daunting challenge’

By Shamindra Ferdinando

Energy Minister Udaya Gammanpila, who is also the leader of the Pivithuru Hela Urumaya has contradicted the much repeated SLPP government claim that the global Covid-19 epidemic caused the current financial crisis.

Attorney-at-law Gammanpila emphasised that the ‘economic time bomb’ had exploded about five years earlier than he anticipated as a result of the Covid-19 eruption. The Minister went onto emphasize that the country was caught in a debt trap.

Minister Gammanpila said so at the inauguration of the National Trade Exhibition at the BMICH on Feb 06 with the participation of Prime Minister Mahinda Rajapaksa and Industries Minister Wimal Weerawansa.

The PHU is on a collision course with the SLPP over the legal challenge mounted in the Supreme Court in late last year against an agreement between Sri Lanka and the US based Company New Fortress Energy.

Declaring that he was not sure whether those responsible had really understood the grave crisis the country was in, lawmaker Gammanpila warned that the economic crisis wouldn’t end even if Sri Lanka fully recovered from the pandemic.

The Colombo District MP said that the deteriorating crisis could be easily explained. The government lacked Rupees and the country experienced severe dearth of foreign currency.

Minister Gammanpila said that successive governments over period of several decades had taken loans without considering the financial sustainability. The minister explained that the national economy had deteriorated to such an extent, Sri Lanka was no longer in a position to ask for loans. Minister Gammanpila said that the government couldn’t take loan in Rupees or USD or settle loans that had been taken.

The minister pointed out that all governments should accept the responsibility for failing to address the widening gap in imports and exports. How could we bridge USD 8 b trade gap by way of foreign loans.

The PHU leader pointed out that in addition to USD 8 bn gap in exports over imports, the country had to pay as much as USD 7 bn in outstanding loans and interests. Therefore, the government had no option but to explore ways and means of raising USD 15 bn a year to cover the trade deficit as well as loans and interest repayments.

MP Gammanpila said that in calculating the annual approximate shortage of USD, he hadn’t taken into consideration the USD requirement for Lankans studying overseas, those seeking medical treatment and foreign visits. Therefore the actual shortfall was even bigger, the minister said, warning that the gap couldn’t be bridged even if the tourism fully recovered and the country managed to regain foreign remittances lost due to workers returning home with the outbreak of the pandemic.

The MP declared that Sri Lanka couldn’t overcome the crisis by obtaining more loans from China and India and by seeking IMF assistance.

The PHU leader declared that first of all the government should accept the country was in deepening crisis not due to Covid-19 but as a result of a death trap of its own making due to living beyond its means. The minister said that instead of deceiving the masses, the people should be taken into confidence and the gravity of the situation explained.

The minister said that leaders had to set an example by making sacrifices thereby helping the public to change their life styles.

Minister Gammanpila questioned the country importing fruits worth USD 68 mn, spices worth USD 127 mn, vegetables and grains USD 384 mn in 2021. When the issue was taken up at the cabinet, Minister Chamal Rajapaksa pointed out how USD 384 mn had been spent on dhal imports. The minister claimed that USD 850,000 had been spent on imported bees honey and USD 450mn?? on imported water bottles.



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PNB detect large haul of methamphetamine and heroin in local fishing trawler intercepted by Navy

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Acting on credible information, the Sri Lanka Navy launched a special operation on the high seas on 11 Apr 25, resulting in the apprehension of  06 suspects along with a local multi-day fishing trawler, believed to be involved in smuggling of narcotics.

Subsequently, the intercepted trawler was brought to the Dikkowita Harbour, where a thorough inspection was carried out with the assistance of the Police Narcotic Bureau (PNB) experts, leading to the detection of  approximately 77kg and 484g of heroin and 42kg and 334g of methamphetamine (Ice).

The consignment, which had been meticulously hidden in the trawler, was handed over to the PNB for onward legal action on 12 Apr.

 

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Government to initiate new projects to help rural communities to strengthen the national economy – Prime Minister

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Prime Minister Dr. Harini Amarasuriya stated that the government is currently working to initiate new projects across every area of Sri Lanka and to bring the necessary investments to rural areas in order to improve the participation of the communities in strengthening the national economy.

The Prime Minister made these remarks while addressing a public gathering held on Saturday (12th) in Nanattan, Mannar.

Prime Minister further stated:

“Our country has reached a decisive point. The government of the National People’s Power (NPP)  understands the expectations of the people. The general public came together despite the ethnic and religious barriers to exercise their voting right against  corruption in politics that existed in this country. Consequently, Anura Kumara Dissanayake was able to become the President in 2024. A month later, we formed a Parliament that will initiate in changing the history. Today, we have a government made up of 159 members. There is now a strong group in Parliament standing against corruption and a government that represents all ethnicities, religions, and regions. For the first time in history, we have formed a government made by a single party that represents everyone. The people are the ones who made this victory possible and they are the true victors in this cause.

We are committed to protecting the trust the people have placed in us and to fulfill their expectations.

You are well aware of how weak the economy was when we came to power. Officially, we had been declared a bankrupt nation before the world. For many years, Sri Lanka had no economic growth and was in a debt-ridden economy. The tourism sector had collapsed. Due to the corruption in political authority, investors were unwilling to invest the country. Today, we have changed all that.  We have managed to steer the economy towards growth leading to investments being restored while the confidence in Sri Lanka is increasing internationally.

We are working to start new projects in every area of Sri Lanka to bring the necessary investments to the rural sector, with the aim of improving the participation of rural communities in the national economy.

The first budget of the NPP government has passed. Even though the economy is not yet strong, we focused on two main priorities in the budget: one was to develop infrastructure necessary for economic growth, and the other was to provide relief to people burdened by economic hardships. That’s why we have increased and extended the period of Aswesuma benefits. Further, vouchers to buy schoolbooks was distributed at schools with less than 300 students.

Previous governments were a burden to the people. But today, we have a very small Cabinet of Ministers. The government is no longer a burden to the people. We have reduced expenses, minimized losses, and eliminated corruption.

Because the government  is not a burden to the people, it was able to provide relief to the people. Through this budget, the basic salaries of  the public service has been increased. They have been given the opportunity to work freely. Decisions are now made on statistical data and not based on political preferences. What we expect is an independent public service. We are in need of a people-centered government as well as a public service which should be an efficient, corruption-free and people-sensitive. We have already created the necessary environment for that.

In order to develop the rural economy, the government has allocated a large amount of funding through this year’s budget. But, to ensure that these allocations are used properly to serve the people, the local government institutions need to be cleaned up. If the leaders who represents the villages are corrupt, the funds allocated will become worthless. That is why the upcoming local government elections has become extremely significant and decisive.”

The event was attended by the Members of Parliament Jegadeeswaran and S .Thilakanadan, public representatives, and candidates of local government election representing the NPP.

[Prime Minister’s Media Division]

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Batalanda: Why only now and what about the others, asks Mujibur

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SJB Colombo District MP Mujibur Rahuman launched a fierce critique of the political hypocrisy surrounding the Batalanda Commission report during Thursday’s (10) parliamentary session.

Rahuman pointed to the violent actions of the JVP, which had devastating effects on politicians, police officers, and civilians, as detailed in the Commission’s final report.

He said that the violence had disrupted vital services and created a state of lawlessness, severely affecting the public.

The MP accused political opponents of exploiting the Batalanda issue for electoral advantage, noting that for 36 years, no proposals were made to investigate the assassination of JVP leader Rohana Wijeweera.

He criticized the JVP for forming “probationary” governments with Chandrika Kumaratunga and backing Ranil Wickremesinghe in the yahapalana effort, yet failing to address the Batalanda issue during their tenures.

Rahuman also questioned the current attacks on Wickremesinghe, highlighting that many of his critics had previously collaborated with him. He called attention to the JVP’s statements regarding Gotabaya Rajapaksa’s alleged involvement in a Matale mass grave and the distribution of pamphlets on the subject during the 2022 Galle Face protests.

The MP called for accountability, questioning why no proposals were put forward on these issues when the current government came into power. He also criticized the NPP for its leaders, who, despite being involved in suppressions during the 80s and 90s, now sought positions within the government. Rahuman accused them of hypocrisy, warning against dragging the Batalanda issue into the ongoing election.Rahuman said that the historical wrongs committed by JVP political leaders cannot be erased, regardless of attempts to downplay them.

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