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Ranil insists on getting IMF help to get out of  current economic mess

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UNP Leader and former Prime Minister Ranil Wickremesinghe has said that the International Monetary Fund (IMF) had never asked Sri Lakan governments to downsize the public service.

Speaking at a meeting of the Rotary Club of Colombo West last week as the Guest Speaker, Wickremesinghe said Sri Lanka should seek IMF assistance to overcome the current economic crisis, and many countries had been compelled to tighten their belts.

When a participant asked what conditions the IMF might impose on Sri Lanka other than retrenchment in return for assistance, the former Premier said that the IMF had never asked Sri Lankan governments to reduce the number of public workers.

“They may tell the government not to increase the workforce; they told us so in 2001. The bigger problem is making public service efficient and restructuring the economy.

“The current crisis is leading to the unravelling of our economy, our social system, and most probably, the unravelling of our political system. Economically, we have not seen such a situation since 1988/1989, when we had the LTTE on one hand and the JVP and the IPKF on the other. The economy really took a beating, but that is nothing compared to what we are going through today.”

“Firstly, there has been a decline in our foreign exchange reserves. Our overall situation is bad because the banks don’t carry their own reserves. Secondly, there’s a decline in government revenue, and the total debt has risen. By 2020, it hit 101% of our GDP, which has never happened before. We always try to keep it at 85% and then try to bring it down.”

“Due the revenue shortfall, we have resorted to money printing. In 2020, the increase in money supply was 23%. So, what have we got? Money is being printed while foreign exchange reserves are dwindling and as a result the dollar appreciates; the USD was Rs. 181 in 2019 November and it has reached about Rs 250. You have the government’s exchange rate, or the bank rate and the ‘Pettah’ rate.”

“What is the result? As the economy contracts fast, the impact is being felt by the working-class, low-income people, Samurdhi recipients and others. I think, before the end of the year, there will be a time when we have to stick to one meal instead of three.

“We are also finding that part of the middle class is slipping down to the lower-income category. That is the second issue. Unemployment and inflation are on the rise. Another issue is that there’s going to be a shortage of food by about March. In contrast, there are still enterprises which make good profits.

“So, how do we resolve this? Some people feel that this will be resolved when the global economy recovers from COVID-19. We hit rock bottom in 77 and 89 and 2001, and in 2015 while the global economy was doing well. So, we could always go to them and get some spare cash. We went along to the IMF, and they provided us funding. But there were always allies around, we ensured that every country was our friend. This time it’s different.

“According to the IMF, in the first quarter of 2022 there will be a slowing down of growth. That is due to ‘Omicron’. But thereafter, because the US and China are slowing down, the rate of growth globally will slow down. The global economy will lose up to 13 trillion dollars by 2024 and global debt – that is the official debt – will be 256% of the global GDP.”



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Development activities in schools within plantation areas should be carried out in coordination with District Coordinating Committees – PM

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Prime Minister Dr. Harini Amarasuriya stated that development activities in schools within plantation areas should be carried out in coordination with District Coordinating Committees, and that further recruitments to the teaching service will be undertaken in the future according to existing vacancies.

The Prime Minister made these remarks at a meeting held on Thursday [19 February] at the Parliament of Sri Lanka, attended by officials of the Ministry of Education, Higher Education and Vocational Education and the Ministry of Plantation and Community Infrastructure, convened to identify solutions to issues affecting schools within plantation areas.

During the meeting, special attention was drawn to identifying schools in plantation areas; improving infrastructure, sanitary facilities and security within those schools; confirming lands of school premises; filling existing vacancies of teachers, principals and sports instructors; and providing transportation facilities of schools within the plantation areas.

Officials also drew the Prime Minister’s attention to challenges faced by students in Grade 13 in studying science and mathematics streams in estate schools, as well as issues related to language.  The need for Tamil-medium support in teacher-training programmes was also emphasized during the meeting.

The Prime Minister stressed that resolving issues related to lands belonging to the schools in plantation areas require collection of data  at district-level, and that the suitability of each school site should be considered when relocating or regularizing schools, taking into account the impacts caused by Cyclone Ditwah. She instructed officials to formulate an efficient mechanism to collect the necessary data.

She further noted that schools within plantation areas are government schools and that due consideration should be given to how these schools are identified and referred to in the future.

The Prime Minister instructed officials to keep District Coordinating Committees informed and to collaborate with them in carrying out development activities related to estate schools, emphasizing that this would enable closer monitoring of school development initiatives.

She also expressed confidence that the planned recruitment of 23,000 teachers would help address the existing teacher shortages to a considerable extent, and stated that further annual recruitment would be undertaken in the future to fill remaining vacancies.

The meeting was attended by the Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar; Deputy Minister of Education and Higher Education, Dr. Madhura Senevirathne; Deputy Minister of Plantation and Community Infrastructure, Sundaralingam Pradeep; Members of Parliament; and officials of the relevant ministries.

[Prime Minister’s Media Division]

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CEB trade unions hint at stringent industrial action after talks fail

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Trade unions of the Ceylon Electricity Board (CEB), backed by the powerful Ceylon Electricity Board Engineers’ Union, have warned of accelerated trade union action following the collapse of crucial discussions held on Monday (16) with the CEB Chairman, who also serves as Secretary to the Ministry of Power and Energy.

The issue is expected to take centre stage at today’s press conference, with unions signalling that a token strike, possibly a 12-hour countrywide action, could be staged next week unless authorities urgently intervene.

The meeting earlier this week ended without what union representatives described as any “positive or constructive outcome.”

Trade union leaders expressed disappointment that their key concerns had not been substantively addressed during discussions with the Chairman.

At the heart of the dispute is the unions’ demand for a collective agreement in accordance with Section 18(j) of the Sri Lanka Electricity Act No. 36 of 2024. Trade union representatives maintain that the law provides for structured engagement between management and employees and that a formal collective agreement is necessary to ensure transparency and industrial stability within the institution.

The unions also submitted what they termed a reasonable proposal to safeguard the CEB Employees’ Provident Fund (EPF), voicing concerns over the long-term security of workers’ retirement benefits.

However, according to trade union sources, those proposals were not adequately taken up during the discussions.

A senior electrical engineer told The Island that further internal consultations were being held to decide the next course of action. “There is growing frustration among employees. The issues raised are fundamental and relate directly to statutory compliance and the financial security of staff,” he said.

The Island learns that unless there is meaningful engagement from the authorities, the proposed token strike could mark the beginning of more stringent industrial action.

Energy sector observers warn that any escalation of trade union unrest at the CEB could have serious implications for the country’s power sector stability at a critical time.Further developments are expected following today’s media briefing.

By Ifham Nizam

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PM reveals allowances and perks available to MPs

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Prime Minister Dr. Harini Amarasuriya yesterday (19) revealed allowances and benefits provided to Members of Parliament at present.She did so while responding to a question raised by Samagi Jana Balawegaya MP Chaminda Wijesiri.

According to the disclosure:

An MP receives a monthly allowance of Rs. 54,285, with an entertainment allowance of Rs. 1,000 per month.

Driver allowance is Rs. 3,500 per month; however, if the MP is provided with a driver by the Ministry of Public Security and Parliamentary Affairs, no driver allowance is paid.

Telephone allowance is Rs. 50,000, while transport allowance is Rs. 15,000 per month.

Office allowance amounts to Rs. 100,000.

MPs attending parliamentary sessions receive Rs. 2,500 per day, while Rs. 2,500 per day are given for MPs attending committee meetings on non-sitting days.

Meanwhile, Members of Parliament also receive a fuel allowance based on the distance from their elected district to Parliament.

For national list MPs, this is calculated as 419.76 liters of diesel per month, paid at the approved market rate on the first day of each month.Dr. Amarasuriya also emphasised that these allowances are structured to cover official duties and transportation costs.

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