News
Ranil insists on getting IMF help to get out of current economic mess
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.”
News
PSTA worse than PTA: FSP
The Frontline Socialist Party (FSP) yesterday accused the government of seeking to use the proposed Protection of the State from Terrorism Act (PSTA) to suppress popular political activity, claiming that some of its provisions were more repressive than those of the Prevention of Terrorism Act (PTA).
FSP Education Secretary Pubudu Jayagoda told a media briefing, in Nugegoda, that the definition of terrorism in the Bill was so broad that it could be used to label almost any form of popular political activity as terrorism.
He said the Bill’s approach to defining terrorism was based largely on attempts to compel a government, or an international organisation, to do, or refrain from doing something, rather than on internationally recognised criteria, such as killings, causing serious bodily harm, kidnapping or acts intended to spread terror among the public.
Jayagoda also alleged that the Bill transferred substantial powers from the judiciary to the executive, while extending powers of arrest, investigation and detention to the armed forces, in addition to the police.
He claimed that the government had sought to portray the Bill as a replacement for the PTA while retaining or introducing provisions that could facilitate political victimisation and repression.
The FSP also questioned the government’s decision to proceed with the Bill, despite having previously sought public views on an earlier draft.
Jayagoda said a draft had been published earlier this year, with the period for public submissions ending on February 28, but the Bill subsequently gazetted was essentially the same draft with some provisions rearranged.
Jayagoda also referred to a letter reportedly sent by Attorney-at-Law Saliya Peiris, a member of a Committee, chaired by President’s Counsel Rienzie Arsecularatne, that had been appointed to draft the legislation. He said Peiris had stated, in the October 06 letter, that changes had been made to the draft prepared by the Committee.
“This means that even the Committee, appointed to prepare the Bill, was a deception,” Jayagoda alleged.
He said that the PSTA was fundamentally similar to the Anti-Terrorism Bill introduced by the previous government, in 2023, which the National People’s Power (NPP) opposed and challenged in court.
“If the NPP opposed that Bill then and is now bringing the same legislation before Parliament, the government must explain its position,” he said.
Jayagoda called on NPP MPs to oppose the PSTA in Parliament and urged trade unions and other groups to build a broad public movement against the legislation.
He challenged the government to an open debate on the Bill.
News
Shiranthi R remanded until 13 Oct.
Former First Lady Shiranthi Rajapaksa was yesterday remanded until 13 October after being produced before the Colombo Magistrate’s Court following her arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Shiranthi, wife of former President Mahinda Rajapaksa, was arrested at her residence on Poorwarama Road, Kirulapone, after CIABOC officers recorded a statement from her for nearly two hours.
According to the CIABOC, the arrest was made over allegations that Rs. 10 million obtained from the National Savings Bank through the Siriliya Saviya organisation was misappropriated.
The money was allegedly obtained to provide a Computed Tomography (CT) scanner to the children’s hospital. Investigators allege that the scanner was not provided and that the funds were instead unlawfully used.
CIABOC is investigating alleged offences under the Public Property Act and corruption-related provisions in connection with the transaction and other financial activities involving Siriliya Saviya, which was headed by Rajapaksa.
Rajapaksa returned to Sri Lanka on Monday night on a flight from Malaysia after travelling overseas for medical treatment. She left for Singapore on 16 September after being admitted to a private hospital in Colombo on 15 September following an illness.
She had been due to appear before the Financial Crimes Investigation Division (FCID) on 13 October in connection with its investigation into the financial affairs of Siriliya Saviya.
Meanwhile, her lawyers filed an anticipatory bail application before the Maligakanda Magistrate’s Court on Monday, seeking an order preventing her arrest in connection with the FCID investigation.
News
Former NSB Chairman Kariyawasam granted bail
Former National Savings Bank (NSB) Chairman Pradeep Kariyawasam was yesterday granted bail by the Colombo Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Kariyawasam, husband of former Chief Justice Shirani Bandaranayake, was arrested in connection with the Bribery Commission’s investigation into the ‘Siriliya Saviya’ account linked to former First Lady Shiranthi Rajapaksa.
The investigation concerns financial activities involving the Siriliya Saviya initiative, which was headed by Rajapaksa, wife of former President Mahinda Rajapaksa.
CIABOC is continuing investigations into the alleged financial irregularities relating to the account.
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