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SL wouldn’t have been in this mess if IMF conditions had been complied with – State FM

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By Shamindra Ferdinanado

State Finance Minister Ranjith Siyambalapitiya has said that Sri Lanka wouldn’t have ended up being bankrupt if previous governments had adhered to agreements with the International Monetary (IMF).

Reiterating that the country is experiencing the worst ever economic crisis, lawmaker Siyambalapitiya warned that the government would be under IMF scrutiny this time around.

Appearing on weekly Hiru political programme Salakuna on Monday (26), the Kegalle District MP, who had previously served as State Finance Minister during Mahinda Rajapaksa’s tenure as the President, said that successive governments hadn’t been honest with the IMF. “We conveniently forgot what was promised to the IMF after having received a couple of tranches,” MP Siyambalapitiya said adding that the IMF would be alert now.

The State Finance Minister said that the first tranche amounting to USD 400 mn was expected in January 2023. The SLFPer emphasised that the financial mess couldn’t be settled with the USD 2.9 bn received from the IMF over a period of four years. However, the agreement with the IMF would restore the foreign governments’ faith in Sri Lanka, the State Minister mentioned.

Pointing out that Sri Lanka had received IMF loans on 16 previous occasions and the recently finalised Staf- Level agreement would lead to the 17th loan facility, MP Siyambalapitiya said that he signed the 15th agreement on behalf of Sri Lanka.

Responding to Hiru anchor Chamuditha Samarawickrema’s query whether economic crimes had been perpetrated as referred to by the United Nations Human Rights Commissioner’s latest report on Sri Lanka, lawmaker Siyambalapitiya said that there were no such crimes here. Therefore, the Geneva statement was not applicable to Sri Lanka. But, when Samarawickrema pressed the Minister on the accountability on the part of former President Gotabaya Rajapaksa’s government for the economic fallout, the lawmaker acknowledged the wrongdoing on their part.

Commenting on former President Gotabaya Rajapaksa’s government depriving the Treasury of over Rs 500 bn by implementing a wide tax cut, soon after the last presidential election, State Minister Siyambalapitiya faulted those who advised the President on economic matters. The State Minister said that the economy was handled by Presidents and Ministers who didn’t know the subject. When Samarawickrema pointed out that the former President was advised by Dr. P.B. Jayasundera, MP Siyambalapitiya said that he didn’t know that. Subsequently, MP Siyambalapitiya acknowledged the role played by Dr. PBJ, who then functioned as Secretary to the President, and previously as Secretary to the Treasury.

During an heated exchange, the State Finance Minister said that the then government reduced the number of tax files from 1.5 mn to 400,000 and the number registered taxpayers from 1.7 mn to 500,000. The MP said that the country was in a pathetic state today as successive governments followed wrong economic policies. The Covid-19 eruption in 2020 and external factors, too, contributed to the overall deterioration of the situation, the MP said.

In spite of clear indications that the country was heading for an unprecedented crisis, the powers that be steadfastly refused to seek IMF interventions. Instead, they continued the same harmful policies.

Asked whether as the State Finance Minister he felt the need to inquire into those responsible for the economic crisis, the MP said “Geneva was conducting investigations.” Samarawickrema asked why Geneva should be placed in charge of such an investigation when the responsibility lies with Sri Lanka. The Minister said: “I won’t hand over investigations to Geneva. I acknowledge the policies followed by successive governments were utterly wrong.

State Minister Siyambalapitiya also explained actions taken by him to explore ways and means of recovering losses suffered by the Treasury as a result of reduction of duty on a kilo of imported sugar from Rs 50 to 25 cents on Oct 13, 2020. The Minister said that Sri Lanka lacked laws to deal with those who perpetrated the sugar scam, adding that one of the sugar importers immensely benefited from the duty reduction.

State Minister Siyambalapitiya strongly defended his decision to accept ministerial portfolio, regardless of specific instructions from party leader Maithripala Sirisena not to do so.

Dismissing accusations that he switched allegiance to President Ranil Wickremesinghe for personal benefit, lawmaker Siyambalapitiya said that some of them accepted portfolios, as the Samagi Jana Balavegaya (SJB), the JVP and others would never have joined the government. They always feared the consequences of President Wickremesinghe overcoming the crisis, MP Siyambalapitiya said.



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UNEP support pledged to strengthen Sri Lanka’s Environmental Priorities

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A special bilateral discussion was held on Thursday (02) morning  at the United Nations Conference Centre (UNCC) in Bangkok, Thailand, between the Deputy Minister of Environment, Anton Jayakody, and regional representatives of the United Nations Environment Programme (UNEP).

The discussion began with an appreciation of the long-standing relationship between Sri Lanka and UNEP, particularly highlighting Sri Lanka’s role as a UNEA 8 Bureau member and a key partner in Global Environment Facility (GEF) projects. The meeting focused extensively on securing UNEP’s technical
and financial support to advance several of Sri Lanka’s national environmental priorities.

During the meeting, the Deputy Minister expressed Sri Lanka’s gratitude for the guidance provided by UNEP throughout the adoption process of the UNEA Youth Resolution. He outlined the national program currently being designed in Sri Lanka in alignment with the resolution. Under this initiative, attention was drawn to securing UNEP’s technical assistance, capacity-building support, and access to global funding mechanisms.

These resources will be utilized to formulate a “National
Environmental Literacy Index” to assess the environmental awareness of youth, establish “Youth Environmental Committees” spanning from the national to grassroots levels, set up university youth forums, and implement environmental promotion programs driven through sports

In addition, Sri Lanka requested UNEP’s assistance in upgrading its national air quality monitoring systems, enhancing data analysis, and developing policy guidelines.

The Deputy Minister also sought policy advisory services on Extended Producer Responsibility (EPR), technical expertise in plastic waste lifecycle management, and support for pilot projects aimed at minimizing single-use plastics and transitioning toward a circular economy.

Furthermore, the Deputy Minister noted that measures have been taken in collaboration with the Ministry of Transport to expedite sustainable e-mobility projects. He added that Sri Lanka anticipates UNEP’s support for the “Sustainable Cities Integrated Programme” under the country’s GEF 9 national
strategies. Reaffirming Sri Lanka’s active commitment to regional initiatives that foster environmental knowledge sharing among South Asian nations, it is expected that UNEP’s technical intervention during the upcoming GEF 9 financial cycle will continue to support Sri Lanka’s journey toward environmental resilience.

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CIABOC to question Harak Kata on Rs. 200 mn bribery allegation

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Nadun Chintaka (Harak Kata)

He is the only detainee at old Tangalle prison

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) probing bribery allegations pertaining to the recent arrest of attorney-at-law Rakitha Rajapakshe, former SJB Horana organiser Charitha Abeysinghe and another person is expected to question drug dealer Nadun Chintaka Wickremaratne alias Harak Kata being held under the Prevention of Terrorism Act (PTA).

The CIABOC arrested Rakitha and Charitha Kumara Wasantha Abeysinghe and former Director of Airport and Aviation Services Warushahanndige Aruna Sri Chathuranga on 25 June over the Rs 200 mn bribery allegation. Produced before the Colombo Chief Magistrate court on the same day, they were remanded until 3 July.

Sources familiar with the case told The Island that Wickremaratne arrested in Madagascar on 1 March 2023 was brought to Sri Lanka on 14 March 2023, and after preliminary investigations he was detained at the old Tangalle prison. Wickremeratne has been accused of running a major narcotics smuggling operation.

Wickremaratne’s lawyer Udul Premaratne, having visited Wickremeratne, sought the intervention of the Human Rights Commission of Sri Lanka to ensure the latter’s safety.

As many as 90 police (terrorist Investigation Department) and the Special Task Force (STF) have been assigned to the Tangalle old prison where Wickremaratne remains the sole detainee.

The CIABOC, in a statement posted in Sinhala on its website on 25 June said that arrested persons received the money after having initially asked for Rs 500 mn and then reduced it to Rs 200 mn. The Rs 120 mn allegedly received has been described as an advance.

Sources said investigators would question Wickremaratne over his wife’s claim that she had paid Rs. 120 million.

In terms of the PTA, the detention orders can be issued only by the Defence Minister. At the time Wickremaratne was brought to Colombo, Ranil Wickremesinghe held the defence portfolio. According to legal sources, when the President also held the defence portfolio, the responsibility for issuing the detention orders was relegated to the Defence Secretary.

Maj. Gen. Kamal Gunaratne who served as the Defence Secretary during that period.

Sources said that Wickremaratne’s wife was yet to come back and his parents and a brother were believed to be the only visitors except for lawyers. One of the crucial issues was how Wickremaratne had communicated with his wife living abroad, sources said.

By Shamindra Ferdinando

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Petrol, diesel prices could be reduced by Rs. 141 and Rs 126 per litre: Udaya

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Udaya

Pivithuru Hela Urumaya (PHU) leader and former Petroleum Minister Udaya Gammanpila yesterday (2) claimed that the price of a litre of Octane 92 petrol and auto diesel could be reduced by Rs 141 and Rs 126, respectively.

The former Energy Minister said that Rs 20 per litre price reduction declared by the Ceylon Petroleum Corporation (CPC) in respect of Octane 92 petrol and Rs 25 drop in litre of auto diesel price proved that the government fleeced the public.

Earlier, Samagi Trade Union Alliance convenor Ananda Palitha claimed that the price of litre of Octane 92 petrol and auto diesel could be reduced by Rs 115.

A litre of Octane 92 is sold at Rs 414 and a litre of auto diesel at Rs 382.

Pointing out that the CPC hadn’t reduced Octane 95 petrol and Super Diesel at least nominally, the former parliamentarian said that the CPC could reduce them by Rs 155 and Rs 149, respectively. A litre of petrol Octane 95 is sold at Rs 495 and a litre of Super Diesel at Rs 478.Gammanpila pointed out that the government had sharply increased prices when the Iran war entered the 12th day having claimed that that it had stocks for 35 days. (SF)

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