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IMF head flags inflation, China slowdown as risks to Asia

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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



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Prison rules to be revised over monks’ attire

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Harshana

Appointment of committee eyewash, says UNP

The government is considering changes to prison regulations pertaining to the treatment of Buddhist monks serving jail terms, including their right to wear monastic robes when taken outside prison.

Justice and National Integration Minister Harshana Nanayakkara announced the proposed changes yesterday (14) following the submission of an interim report by a committee appointed to review the rules and procedures governing prisons.

The report was handed over to Secretary to the President Dr Nandika Sanath Kumanayake at the Presidential Secretariat.

One of the key recommendations is to amend Prison Standing Order 356 by introducing a new provision, 356(A). The proposed revision would require prison authorities to consult the Department of Buddhist Affairs on the removal of a monk’s robes upon admission to prison. The Commissioner of Prisons would be allowed 10 days to notify the department and take the necessary steps.

A separate amendment to Departmental Order 550 would allow Buddhist monks to wear their robes whenever they are taken outside prison, unless their respective Nikaya formally requests that the privilege be withdrawn.

The committee has also recommended extending similar arrangements, with suitable modifications, to members of other religious clergy who are imprisoned.

The proposals follow concerns raised over the treatment of Ven. Galagoda Aththe Gnanasara Thera after he was taken into custody. President Anura Kumara Dissanayake subsequently held discussions with representatives of the three main Buddhist Nikayas and appointed the committee to examine the existing legal framework.

Nanayakkara said the interim report had been forwarded to the Acting Commissioner General of Prisons, along with instructions to revise the relevant standing orders in accordance with its recommendations.

The proposed amendments have yet to be confirmed as formally implemented.

Meanwhile, the UNP yesterday criticised the government’s decision to appoint a committee to make recommendations on the attire to be worn by imprisoned Buddhist monks and other religious leaders when taken outside prison, describing the move as unnecessary.

In a statement issued yesterday (14), the UNP said the procedures governing the matter were already clearly set out in the Department of Prisons’ Standing Orders, making the appointment of a separate committee unwarranted.

The party cited remarks by Professor G.L. Peiris, Convenor of the Janathawadi Joint Opposition, who had described the committee’s appointment as a

“complete eyewash” and questioned the need for such a move.

Referring to Standing Order 550 of the Prisons Department, the UNP said convicted prisoners appearing before court for legal proceedings should not be required to wear prison uniforms.

It further stated that the regulations allowed prisoners to wear civilian clothing consistent with what they wore before imprisonment, including attire appropriate to their cultural and religious backgrounds.

The UNP accused the government of unnecessarily prolonging the issue by appointing a committee, despite the existence of regulations governing prisoners’ attire.

The party also called on the government to seek forgiveness from the Mahanayake Thera and the Sangha Council of the Kotte Sri Kalyani Samagri Dharma Maha Sangha Sabha of the Siyam Maha Nikaya over the decision concerning the religious attire of Ven. Galagoda Aththe Gnanasara Thera.

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AC President recuses himself from hearing prison attire case pertaining to Gnanasara Thera

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Court of Appeal President Justice Rohantha Abeysuriya yesterday withdrew from the bench hearing petitions challenging the decision by prison authorities to require Ven. Galagoda Aththe Gnanasara Thera to wear prison attire following his imprisonment.

The decision was announced when the petitions seeking to invalidate the prison authorities’ decision were taken up for consideration on October 14.

Following his withdrawal, a three-judge bench was appointed to hear the petitions.

The petitions relate to the prison authorities’ decision to require Gnanasara Thera to wear prison attire after he was taken into custody to serve the remainder of his sentence for contempt of court.

In September this year, the Supreme Court annulled the presidential pardon granted to Gnanasara Thera by former President Maithripala Sirisena in May 2019.

Following the ruling, the Court of Appeal directed the Commissioner General of Prisons to take the necessary steps to enforce the remainder of the monk’s prison sentence.

Gnanasara Thera had originally been sentenced to six years’ imprisonment for contempt of court but had served only around nine months before receiving the presidential pardon in 2019.

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Court orders steps to obtain INTERPOL Red Notice against Basil

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Basil

The Fort Magistrate’s Court yesterday issued an arrest warrant for former Minister Basil Rajapaksa over the alleged misuse of funds belonging to the Sri Lanka Tourism Promotion Bureau during the 2014 Uva Provincial Council election.

The Magistrate also directed the CID Illegal Assets Investigation Division to take necessary steps to obtain a Red Notice through Interpol.

The orders were issued following submissions made by the CID in connection with the alleged financial irregularities.

The CID’s Illegal Assets Investigation Unit informed the court that Rs. 7.8 million allocated to the Sri Lanka Tourism Promotion Bureau in 2014 had allegedly not been used for the Bureau’s promotional activities.

Instead, the funds had allegedly been used to provide 12,000 T-shirts during the Uva Provincial Council election, causing a financial loss to the government, the CID told court.

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