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Part of USD 200 mn ADB loan spent on cash assistance scheme for paddy farmers

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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.



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SLNS Samudura departs to participate in IMDEX Asia 2025 in Singapore

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SLNS Samudura on 27 Apr 25 set sail from the Port of Colombo to Changi, Singapore to join the International Maritime Defence Exhibition (IMDEX) Asia 2025, Asia Pacific’s leading naval and maritime defence event.

The vessel was ceremoniously sent off from Colombo, following traditional naval customs.

IMDEX Asia 2025 is set to take place from 05 to 08 May 25 featuring cutting-edge advancements in naval technology and the event will conclude with a special warship display.

The 9th International Maritime Security Conference (IMSC) will take place alongside the exhibition, featuring high-level discussions on evolving maritime security challenges in an era of geopolitical uncertainties.

Naval forces and maritime representatives from multiple nations are set to take part in the upcoming IMDEX Asia 2025 and IMSC. Taking part in this nature of naval and maritime defence events would open new avenues to the Sri Lanka Navy to build inter-operability with regional and extra-regional partners, exchange best practices and procedures in maritime operations and identify new challenges in maritime domain.

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The NPP government has removed the political protection given for corruption and crime in the past – PM

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Prime Minister Dr. Harini Amarasuriya stated that the current government has removed the political protection that existed for corruption and crime for the past seventy-five years.

The Prime Minister made these remarks while addressing public gatherings held on Sunday (27) in Suriyawewa, Hungama, and Tangalle in the Hambantota District.

Addressing the gatherings, Prime Minister Dr. Harini Amarasuriya stated:

“We have ended the political protection that existed for seventy-five years providing shelter for corruption and crime. There no longer exists any protection for those public-hostile acts of corruption and crime. When we first started this, there were groups within the public service and even within the security forces who were scared and unsettled. All of this was carried out with political protection. Such political protection does not exist now and  what you see is the effort to uncover and clean up the remnants.

One of the most notable incidents in this regard is the arrest of former Inspector General of Police Deshabandu Tennakoon and the actions taken against him thereafter. Have you ever heard of an Inspector General of Police being arrested before? A parliamentary tripartite committee has also been appointed regarding this. Even those who were previously protected by the system are now feeling fear.

Former Cabinet Minister and ruling party member Pillayan has also been taken into custody. There, too, I witnessed rather absurd situations. According to members of the Sri Lanka Podujana Peramuna (SLPP), it was Pillayan who won the war. However, he was arrested in connection with the disappearance of a university vice-chancellor.

It has been reported that the Suriyawewa Pradeshiya Sabha is charging a market tax. If taxes or fees are collected, it must transfer into a service or facility for the people. The current method violates tax policy. A contract has been given to collect these taxes, meaning the money is being collected by a third party. If the taxes collected were genuinely used for the maintenance of the market complex, it should be in excellent condition.

The income of the Suriyawewa Pradeshiya Sabha amounts to 110 million rupees. If that money had been properly used for the Pradeshiya Sabha, today it would be in the best condition. The fact that it indicates that the money has ended up in someone else’s hands.

Despite instructions not to collect money in schools, we continue to receive complaints that it is still happening. We are taking necessary actions to address this matter. However, there are currently insufficient investigative officers to conduct thorough investigations. We are working to strengthen the investigative units within the ministries.

Through the approved budget, we have allocated a large amount of funds for rural development including rural infrastructure, rural economy, and especially to create self-employment opportunities for women and youth, as well as to build clean villages.

The government has now stabilized the economy. The next goal is to increase income and push the economy toward a growth trajectory.”

Prime Minister further noted that the government has been in power for only six months so far and that it will continue working to correct all these issues in the future.

The event was attended by the members of Parliament Saliya Sandaruwan and Athula Weladagoda, along with a large number of candidates and local residents.

[Prime Minister’s Media Division]

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Heat index, is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 27 April 2025, valid for 28 April 2025

The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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