News
IMF head flags inflation, China slowdown as risks to Asia
International Monetary Fund Managing Director Kristalina Georgieva has flagged rising inflationary pressures and China’s economic slowdown as risks to Asia’s economic outlook, calling on policymakers to rebuild their buffers against future shocks.Asian Development Bank President Masatsugu Asakawa also urged Asia’s policymakers to be vigilant to signs of any abrupt capital outflows driven by steady United States interest rate hikes.
“We are already seeing the risk of aggressive tightening of US monetary policy to fight inflation, which may trigger abrupt reversals of capital flows or sharp currency depreciation,” Asakawa said in a video message broadcast at an ASEAN+3 forum held in Singapore on Friday.
Georgieva said economies comprising the Association of Southeast Asian Nations (ASEAN) are a “bright spot” in the global economy, with growth projected at 5 percent this year and moderating slightly in 2023.But she warned the outlook was “exceptionally” uncertain and dominated by risks, such as the fallout from Russia’s war in Ukraine, global financial tightening and a slowdown in China’s growth.
“Another pressing global challenge is inflation. It is expected to average only 4 percent in Asia this year. But inflationary pressures in the region are rising,” Georgieva said.
“We don’t know how long this shock will last and whether other shocks may come. But we need to rebuild and preserve buffers and be prepared to fully use our policy tool-kit,” she told the same forum.
China’s strict COVID lockdowns have weighed on already slowing global growth by dampening domestic economic activity and disrupting supply chains for manufacturers across the world.The fallout from China’s slowdown has been particularly painful in Asia, where factory activity slumped across the region in November.
Some emerging nations have also been forced to raise interest rates to combat capital outflows caused by US rate hikes, at the cost of hurting their fragile economies.At the forum, Bank of Japan Governor Haruhiko Kuroda said he did not see a significant risk of Asia facing a sudden loss of confidence or a renewed financial crisis.But he warned against complacency as some Asian countries saw their policy buffers decrease, after deploying big spending packages to counter the COVID-19 pandemic.
“As the recent market turmoil in the United Kingdom has shown, the reaction of market participants to policy decisions and announcements could signficantly impact asset prices,” said Kuroda, who was formerly head of ADB and Japan’s top currency diplomat.
“ASEAN policymakers must be vigilant” to risks and offer “clear, sufficient and timely communication to avoid unintended outcomes,” he said.
SOURCE: Al Jazeera
News
FSP complains of irregularities in a Guinness World Record event held in Sri Lanka
The Jana Aragala Sandhanaya yesterday lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), calling for an investigation into Deputy Minister Sundaralingam Pradeep over alleged irregularities related to a Guinness World Record event held in Sri Lanka.
The organisation alleged that state patronage had been extended to a private company for the event and that large sums of money had been collected from around 5,000 families of participating students.
Speaking to the media, after submitting the complaint, Jana Aragala Sandhanaya National Executive Council member and Frontline Socialist Party (FSP) Secretary, Duminda Nagamuwa, alleged that the government had promoted the Bharatanatyam workshop, held on June 14, as an event that secured a Guinness World Record for the participation of the largest number of students.
He said a government politician had taken the lead in organising the event, attended by Deputy Minister Mahinda Jayasinghe.
Nagamuwa questioned the decision to provide state support for an event organised by a private entity, claiming that the Guinness certificate issued for the achievement had been awarded not to Sri Lanka or a state institution, but to a company.
“Why did the government provide state patronage to a private institution’s programme?” he asked.
He alleged that each of the approximately 5,000 participating students had paid Rs. 5,000, resulting in the collection of a substantial amount of money. He claimed that parents were also asked to pay additional amounts of Rs. 3,450 for logos and Rs. 2,350 for certificates.
Nagamuwa alleged that many families, from economically disadvantaged backgrounds, had incurred heavy expenses travelling to Colombo and staying there for several days for the event, with some families spending around Rs. 30,000 each.
News
Opposition MPs sign motion demanding debate on prolonged failure to fill vacancies in superior courts
Opposition MPs yesterday signed a motion demanding an adjournment debate in Parliament on the prolonged failure to fill vacancies in Sri Lanka’s superior courts.
The motion, submitted under Standing Order 83(1), calls for a debate on the implications of leaving more than eight vacancies in the Supreme Court and the Court of Appeal unfilled for over six months.
The Opposition said the proposed debate would examine the impact of the vacancies on the administration of justice, the rule of law, the protection of fundamental rights and public access to justice, while urging the authorities to expedite appointments to the vacant posts.
The motion, bearing the signatures of Opposition MPs, is to be forwarded to Speaker Dr. Jagath Wickramaratne, for approval, to schedule the debate.
News
Another Lankan desperado deported from Malaysia arrested at BIA
Suranga Sanjeewa Karunaratne, alias ‘Matiya’, an alleged underworld gunman linked to organised crime figure Kehelbaddara Padme, was arrested on arrival at the Bandaranaike International Airport in the early hours yesterday.
Police said the suspect, a resident of Kotugoda, Yagodamulla, had been detained by Malaysian authorities and deported to Sri Lanka. Officers of the CID took him into custody upon his arrival.
Investigators said an Interpol Red Notice had been issued against the suspect.
Karunaratne is wanted in connection with the fatal shooting, near the Gampaha Magistrate’s Court, in July, 2022, in which alleged organised criminal ‘Paspodda’ was killed and several others sustained injuries.
Following preliminary questioning by the CID, the suspect was handed over to the Western Province North Crimes Division for further investigations. Police said a 72-hour detention order had been obtained to facilitate further inquiries.
by Norman Palihawadane ✍️
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