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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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Fast Attack Craft P 4447 recovered in successful salvage operation

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The Sri Lanka Navy successfully recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.

The craft, which ran into distress during a routine patrol on 15th August 2026 off Angulana, was brought to the surface on 11th September, from a depth of approximately 80 feet. It was
subsequently towed to the Colombo Dockyard premises.
The initial phase of the operation immediately following the incident focused on search and rescue. A joint effort involving the Navy, Air Force, Police, and local fishermen from Angulana
resulted in the rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.

Following the search and rescue phase, specialized Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to
strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilized specialized technical know-how and equipment to raise the vessel in stages.

Thus, the salvage operation marked an outstanding achievement attained through the professionalism, technical expertise of Navy divers, and coordinated contribution of all
engineering and technical branches of the Sri Lanka Navy. Technical support and specialized expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.

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CIABOC member’s appointment: Controversy over Speaker under probe heading selection process

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By Shamindra Ferdinando

The Opposition should intensity its focus on the forthcoming selection of a member of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and remain vigilant as Speaker Dr. Jagath Wickremaratne, MP, the head of the Constitutional Council (CC) tasked with making the relevant recommendation, is under investigation by the CIABOC, sources familiar with the ongoing inquiry told The Island.

Chethiya Goonasekara, PC, is expected to complete his three-year term on Dec 31, 2026. Sources pointed out that CIABOC Commissioners are appointed by the President on the recommendation made by the 10-member Constitutional Council.

The CIABOC initiated the investigation following a complaint lodged by suspended Chief of Staff and Deputy Secretary General of Parliament Chaminda Kularatne in early February this year. Sources said that as Goonasekera is scheduled to complete his term toward the end of 2026, the CC would have to call applications soon to choose the successor.

Goonasekara received his appointment from President Ranil Wickremesinghe in January 2024. A Justice W. M. N. P. Iddawala was appointed Chairman of the CIABOC. The other commissioner is K. Bernard Rajapakse.

Asked whether Iddawala and Rajapakse, too, would complete their terms soon, sources said that in terms of the Anti-Corruption Act No 09 of 2023, the Chairman of CIABOC would hold office for a period of five years, second commissioner (K. Bernard Rajapakse) for four years and the third commissioner (Chethiya Goonasekara) for a period of three years.

Sources said that the Opposition as well as civil society representatives in the CC should take up the issue of Speaker facing an investigation by the CIABOC taking part in the forthcoming selection process. Responding to queries, sources emphasized that the issue was whether in terms of Section 107 of the Anti-Corruption Act the participation of the Speaker in the selection process amounted to a violation of the Act itself.

The current members of the CC are Dr Jagath Wickramaratne, Speaker and Chairman of the Constitutional Council, Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, MP, Aboobucker Athambawa, MP, Ajith P. Perera, MP, Sivagnanam Shritharan, MP, Austin Fernando, Civil society representative, Prof. Wasantha Seneviratne, Civil society representative and Ranjith Ariyaratne, Civil society representative.

Sources pointed out that in spite of the sensitivity of the case, the CIABOC recorded Kularatne’s statement in the second week of August, six months after he lodged the complaint.

The CIABOC on 3, 8 and 10 Sept recorded the statements from the Transport Officer, Deputy Director, Administration and Assistant Director, Finance regarding the use of facilities by the Speaker, those assigned to his staff and other relevant matters.

The NPP named Dr. Wickramaratne as the Speaker after Asoka Ranwala resigned over controversy regarding his higher education qualifications.

SJB lawmaker Dayasiri Jayaskera has repeatedly raised the issues concerning the Speaker with the focus also on the Speaker using two government-managed residences, relevant staff in addition to expenditure on food, transport and fuel provided to the Speaker’s private secretary.

Political sources said that trouble erupted after the Parliamentary Staff Advisory Council in late January sacked Kularatne accusing him of providing false information to secure his appointment. Before being appointed as the Deputy Secretary-General of Parliament in 2023, Kularatne held several high-ranking positions, including Secretary to the Chief Government Whip, Additional Secretary to the President, Additional Secretary to the Prime Minister, and Additional Secretary to the Leader of the Opposition.

The SJB declared in Parliament that Ranwala should be brought back as the Speaker as they have no faith in Wickramaratne. MP Mujibur Rahuman jokingly told parliament that the Opposition wouldn’t raise Ranwala’s educational qualifications.

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GMOA: Countrywide cadre revision not done since 2015

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Dhammika

The Government Medical Officers’ Association (GMOA) has stressed the need to conduct a comprehensive countrywide cadre revision urgently.

GMOA spokesman Dr. Lasitha Dhammika told The Island that the failure on the part of successive governments to conduct cadre revision caused the deterioration of the public sector health services. Due to the absence of required statistics, they hadn’t been able to fully comprehend the situation on the ground and to ascertain the requirements of the public.

Dr. Dhammika pointed out the expansion of the services without supporting statistics and the need to initiate an immediate cadre revision. According to him, the GMOA had raised this issue with successive governments without success. The GMOA spokesman said that they also sought relevant information from the Health Ministry in terms of the Right to Information (RTI) Act two weeks ago but was yet to receive response.

(SF)

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