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Govt. should not deviate from agenda of national needs in discussions to find solutions to crises – Eran
Member of Parliament of the Samagi Janabalavegaya, Eran Wickramaratne has said the country’s crises cannot be resolved only by agreeing to the agendas of multilateral agencies that provide assistance to find solutions to the crises that Sri Lanka is currently facing. When holding discussions with the International Monetary Fund, the government should adopt a strategy to discuss not only their agenda but also to include our agenda of national interest.
Wickramaratne said this while addressing the debate held in Parliament yesterday (10) on the President’s policy statement.
The MP said:
The International Monetary Fund has advised us to revise the electricity tariffs. It has also been said to restructure the balance sheet of the petroleum corporation. It is also said to increase the perimeter of the external credit limit. As of now, our foreign debt is about 30% of the total debt.
Dealings have to be negotiated with other parties who agree to assist in resolving issues. The unique problem for Sri Lanka is the non-availability of dollars. There are also issues with financial problems and a balance of payments related to the budget. But we have no problem with banks. If we do not engage in negotiations to protect our banking system, the emergence of another crisis cannot be avoided.
Wickramaratne asserted that Sri Lanka should not ever consider the domestic debt restructuring proposal in particular. We must be firm in that position. Otherwise, while trying to solve one problem, the country may be pushed into another problem. If a banking crisis occurs, it will take another decade to resolve it.
He said:
In the economic crisis we are facing, the huge problem is the national debt. According to government statistics on public debt, the percentage of debt received from China is 10%. 13% from the Asian Development Bank, 9% from the World Bank, and 47% from sovereign bonds (ISB). 10% from Japan, 2% from India and 9% from all other countries.
Statistics prove that China has actually given more than what was shown in the debt stock. The China Exim Bank has given loans directly to several SoEs with sovereign guarantees and the government has not reported them as government loans. These loans given to public corporations are also government loans and the government itself has to repay them. Also, in Foreign Currency Financing, the amount to be paid to China Development Bank is not included as public debt. From this point of view, the total amount of debt received from China is about 20%.
There are other facts that explain the magnitude of our crisis. Japan’s JICA has stopped the concessional loan of 570 million dollars given for the construction project of the second terminal building at Katunayake Airport. And China’s Exim Bank has also stopped US $ 51 million offered for the construction of the first phase of the Central Expressway from Kadawata to Mirigama, Also, the World Bank announced, on July 29, 2022, that it will not lend to Sri Lanka until macroeconomic stability is established.
“How can the government solve the country’s problems in the midst of such crises” asked Eran Wickramaratne.
The government should understand that these problems cannot be solved just as suggested by other parties involved in the discussion with the government. When holding discussions with the International Monetary Fund, the government should be strategic to include our agenda in the discussion, instead of merely agreeing to follow their agenda alone.
Focusing on the President’s policy statement, Eran Wickramaratne quoted as follows:
“It is imperative to completely eradicate bribery, corruption, and fraud from this society. I will implement a national anti-bribery and corruption policy. We are also approaching combatting corruption with the International Monetary Fund,” declared in that policy statement.
But how can we deviate from the culture of corruption in our country? The main reason for this culture is bribery and corruption. The current Prime Minister also then said that the current President robbed the Central Bank when he was the Prime Minister.
What is clear when studying the history of the last four decades is that there is no way to find out how much the public funds of this country have been looted more or less by the politicians and high officials like chain links by making use of the words democracy, religion, racism and national security in front of them.
Politicians protect their fellow officers who are accused of irregularities and theft. Officers protect their employers – the politicians – and, throughout history, these two parties have been seen sneaking through the loopholes of the law through a soul bond and Wickramaratne demanded that apart from politicians, professionals, too, should come forward in order to build the country.
News
Cut power bills by 3-5%, don’t hike them, consumers demand
By Anuradha Hiripitiyage
Electricity tariffs should be reduced by between 3 and 5 percent instead of being increased by 2.88 percent in the fourth quarter, as proposed by the National System Operator (NSO), Electricity Consumers’ Association Secretary Sanjeewa Dhammika said.
Addressing a media briefing in Maradagahamula, Divulapitiya, Gampaha, yesterday (16), Dhammika said a proper assessment of electricity generation costs, including the contribution of hydropower, could justify a reduction in tariffs.
He said the NSO had sought approval from the Public Utilities Commission of Sri Lanka (PUCSL) for a 2.88 percent tariff increase, which was expected to generate an additional Rs. 4,438 million.
However, the Commission had indicated that an increase of only 1.46 percent was warranted, amounting to Rs. 2,245 million, he said, adding that even this increase was unnecessary.
Dhammika alleged that the proposed revision sought to pass on to electricity consumers the financial burden arising from the non-arrival of five coal shipments and failed tenders.
“The Government had said that the burden of coal-related losses would not be passed on to the public. It is therefore unjust to make consumers bear these costs,” he said.
He pointed out that the PUCSL had forecast that hydropower would account for 32.34 percent of total electricity generation in the coming quarter, while the cost of such generation would represent only 3.45 percent of the overall cost of electricity production.
Consumers should benefit from the lower cost of hydropower generation rather than bear the burden of more expensive thermal power generation, he said.
Dhammika also questioned the inclusion of Rs. 669 million in capacity charges that had not been approved by the PUCSL, as well as a further Rs. 1,069 million to repay loans relating to incomplete projects.
Including such charges in the proposed tariff revision was unjustifiable, he said.
The PUCSL has given the public until October 30 to submit their views on the proposed tariff revision.
Dhammika said the possibility of increased hydropower generation in the coming weeks, as reservoir levels rise, should also be taken into account when determining electricity tariffs.
He maintained that tariffs could be reduced by 3 to 5 percent if hydropower generation was properly assessed and coal-related losses and unapproved charges were excluded from the calculations.
He further claimed that electricity tariffs could be reduced by as much as 10 percent through the promotion of renewable energy and the effective use of solar power and battery storage systems.
The Electricity Consumers’ Association urged the Government to withdraw the proposed tariff increase, insisting that consumers should not be made to bear costs arising from coal supply problems and other disputed charges.
News
Asgiri Mahanayake calls for immediate release of Gnanasara Thera
By S.K. Samaranayake
Most Ven. Warakagoda Sri Gnanaratana Mahanayake Thera of the Asgiri Chapter has called for the immediate release of Ven. Galagodaaththe Gnanasara Thera, who is currently serving a prison sentence, following a court ruling.
The Asgiri Mahanayake made the appeal when a delegation of senior prison officials, including Assistant Commissioner of Prisons and Director of Operations Senaka Pallegedara, called on him on the 16th.
During the meeting, the prelate warned that the continued incarceration of Ven. Gnanasara Thera could lead to a volatile situation and cause public agitation.
Responding to the appeal, the prison officials informed the Mahanayake Thera that the authority to order the release of Ven. Gnanasara Thera did not rest with the Prisons Department but with the President.
Other senior prison officials, including Rajeev Srimal Silva, Sampath Warnakulasooriya and Mangala Welivita, were also present at the meeting.
News
Lanka Air Force joins multinational exercise in India
The Sri Lanka Air Force participated in a multinational air exercise in India, alongside the air forces of the United States, France and Germany, as Sri Lanka continues to expand military cooperation with foreign countries.
A Sri Lankan Air Force Beechcraft King Air 360ER aircraft, and a six-member crew, took part in Exercise Tarang Shakti 2026, held at Air Force Station Jodhpur, from September 26 to October 12.
The exercise was hosted by the Indian Air Force, under the theme “Power in Partnership,” and involved Australia, Bangladesh and the United Arab Emirates, among other participating countries.
According to the Sri Lanka Air Force, the exercise was aimed at enhancing operational cooperation and interoperability among participating air forces and providing opportunities to share tactics and operational experience.
India’s public broadcaster reported that the exercise included training and experience in planning and conducting joint multinational combat operations, including counter-air, air defence, reconnaissance and air-to-air refuelling missions.
The exercise also involved 32 countries as observers.
Sri Lanka’s participation comes amid increased military engagement with foreign partners. India and Sri Lanka recently exchanged 240 military personnel under a tri-service exchange programme.
Sri Lankan military personnel also recently participated in a counter-terrorism exercise with Russia, while a senior US Army Pacific official visited Sri Lanka and discussed opportunities for greater joint training.
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