News
Part of USD 200 mn ADB loan spent on cash assistance scheme for paddy farmers
USD 3 mn Japanese grant attached to ongoing project
By Shamindra Ferdinando
An agreement on the much advertised cash assistance, provided exclusively to paddy farmers by the Wickremesinghe-Rajapaksa government, was finalised several weeks before then President Gotabaya Rajapaksa stepped down on July 14, 2022 amidst violent protests.
The Asian Development Bank (ADB) has provided the wherewithal for this purpose to cash-strapped Sri Lanka following a request made on May 20, 2022.
Senior External Relations Officer, ADB, Roshani Yogarajah said that cash assistance to paddy farmers was discussed and decided in June-August 2022 during preparation of the latest project. Cash assistance provided to paddy farmers in two installments during the 2022/2023 Maha season (September-March) would cost USD 30 mn, Yogarajah declared. According to her, USD 30 mn had been allocated from USD 200 mn emergency assistance loan that was sought by Sri Lanka to provide relief to families badly affected by the continuing economic crisis. The Yala season covers May-August.
The ADB spokesperson at the ADB Resident Mission said so in response to The Island queries regarding when Sri Lanka sought the emergency loan, the amount of the ADB facility, terms and conditions of the loan if it was not a grant as indicated by Agriculture Minister Mahinda Amaraweera as reported by a section of the media and the total amount of ADB loans provided since the last presidential election held in Nov 2019.
Sri Lanka entered into a loan agreement with the ADB on Sept.09, 2022 for USD 200 mn that has to be paid back with stipulated interest and other charges within 24 years.
The spokesperson said: “The cash assistance referred to in the articles is being supported under the Food Security and Livelihood Recovery Emergency Assistance Project. The government made an official request for the emergency assistance ($200 million to be provided with surplus loan proceeds cancelled from six ongoing projects) in May 2022. The inclusion of the cash assistance to farmers in the emergency assistance was discussed and decided in June-August 2022 during project preparation. The allocation for the cash assistance for farmers (to be provided in two installments during the 2022/2023 Maha season) is $30 million.”
In addition to the USD 200 mn emergency loan, the ADB has diverted USD 40 mn from what it called the Mahaweli Water Security Investment Programme to procure Muriate of Potash (MoP) fertilizer for paddy farmers for 2023 Maha season. According to Yogarajah, 40,000 tonnes of MoP that had been obtained was distributed among farmers.
The ADB said that the Ministry of Finance, Economic Stabilization and National Policies would execute the project. Sri Lanka sought USD 200 mn from ADB close on the heels of Ranil Wickremesinghe receiving Premiership on May 12 and five days after he received finance portfolio.
In the wake of Dr. Nandalal Weerasinghe receiving appointment as Governor, CBSL, in April 2022, Sri Lanka requested the ADB’s intervention. According to the ADB, it has formulated an emergency assistance package in close coordination with the World Bank, the Asian Infrastructure Investment Bank, the International Monetary Fund, and United Nations agencies. ADB has coordinated with these development partners in preparing the main project, as well as with the Embassy of Japan and JICA, Sri Lanka in designing the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) grant project.
USD 3 mn JFPR grant has been attached to ADB’s USD 200 mn loan with the intention of providing relief to those who were excluded from the ongoing social assistance programme. In terms of a previous agreement between ADB and Japan, the former will administer the USD 3 mn grant.
Asserting Russia-Ukraine war that erupted in February 2022 aggravated the crisis here, the ADB, too, faulted Gotabaya Rajapaksa government for hasty ban on the import of chemical fertilizers and pesticides in May 2021 that resulted in quite heavy loss of paddy production in 2021-2022.
ADB said that it has received assurance from Sri Lanka that the Japanese grant would be subjected to its policies, including those concerning anti- corruption measures, safeguards, gender, procurement, and consulting services.
News
PM Harini leads panel to protect public services
The newly appointed Cabinet Committee tasked with ensuring the uninterrupted functioning of Sri Lanka’s public service held its inaugural meeting on Thursday (19) at the Presidential Secretariat under the patronage of Prime Minister Dr Harini Amarasuriya.
The Committee convened to discuss strategies to maintain seamless government operations in the face of potential disruptions caused by the ongoing conflict situation in the Middle East, with particular focus on energy resource management.
According to officials, the discussions emphasised sustaining essential government services, ensuring continued service delivery to the public, and addressing the operational challenges faced by public sector employees during the current circumstances. The Committee also examined measures to mitigate any disruptions that could affect day-to-day administrative and service functions across ministries and departments.
Key attendees at the meeting included the Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abayaratne; Secretary to the President Dr Nandika Sanath Kumanayake; Secretary to the
Prime Minister Pradeep Saputhanthri; Chief of Staff to the President Prabath Chandrakeerthi; and senior secretaries from key ministries including Health and Mass Media, Transport, Highways and Urban Development, Energy, and Digital Economy.
Representatives from state institutions such as the Ceylon Petroleum Corporation were also present, highlighting the government’s focus on energy security as a central priority. The Committee’s deliberations underscored a coordinated approach to balancing uninterrupted public service delivery with effective management of limited energy resources amid the ongoing geopolitical uncertainties.
Observers note that the formation of this Cabinet Committee reflects the government’s proactive stance in safeguarding national administrative functions and ensuring that critical public services remain resilient during times of external pressures.The Committee is expected to meet regularly to monitor developments, evaluate emerging risks, and implement practical measures to maintain operational continuity across the public sector.
News
Sajith slams President over war conduct and economic missteps
Opposition Leader Sajith Premadasa on Friday lashed out at President Anura Kumara Dissanayake in Parliament, accusing him of failing to uphold international law during wartime.
Premadasa said the President’s claim of neutrality ignored breaches of the UN Charter—including Articles 2.4 and 2.7—and other global conventions. “A neutral stance requires openly acknowledging violations,” he argued, criticizing the absence of ethical mechanisms to safeguard international law.
He also questioned the President’s handling of maritime issues, particularly whether Sri Lanka had been informed of the alleged attack on the Iranian vessel IRIS Dena, stressing that the Exclusive Economic Zone (EEZ) permits only peaceful activity.
On the economic front, Premadasa condemned the government for missing a chance to buy Russian oil during a 30-day U.S. sanctions suspension.
He said attempts to advise the Foreign Ministry, including a meeting with the Russian Ambassador, yielded no progress.
Premadasa further ridiculed the government’s earlier dismissal of the QR code fuel system, noting that officials are now adapting to it.
Turning to broader economic concerns, he called for immediate negotiations with the IMF to secure a new agreement, warning that the current primary balance of 2.3 is unsustainable. He stressed the urgent need for a poverty-reduction program, highlighting that one-third of Sri Lankans live in poverty.
He also demanded that surplus Treasury funds be used to support relief packages, arguing billions in reserves could aid households struggling with income shortfalls.Concluding his address, Premadasa criticized the government for failing to prepare for foreseeable crises, leaving the country vulnerable.
News
Johnston Fernando, sons held in Lanka Sathosa lorry misuse case
Former Minister Johnston Fernando, his two sons, and three others were remanded by the Wattala Magistrate’s Court yesterday (20) until April 2, the court confirmed.
The suspects, including Fernando’s elder son Johan, younger son Jerome, and a former transport manager of Lanka Sathosa, are under investigation by the Police Financial Crimes Investigation Division (FCID).
Authorities allege the Lanka Sathosa lorry was misused for operations linked to an ethanol company reportedly owned by Fernando, causing an estimated Rs. 2.5 million loss to the state.
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