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Zuhair says restoring worker remittances one way of overcoming crisis

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Former People’s Alliance MP M. M. Zuhair, PC, says restoration of worker remittances to pre-2020 level of US $ 7 billion per year can facilitate early economic recovery. The former Senior State Counsel asserted US $ 7 bn can be a better ladder for Sri Lanka to come out of the ‘deep distressing well’ than IMF’s US $ 2.9 billion.

Zuhair issued the following statement: “President Ranil Wickremesinghe has said that the US $ 2.9 billion request to IMF, receivable over a period of four years, is the only ladder for Sri Lanka to come out of the deep well. The President needs to be advised that other additional options do exist for the 22 million Sri Lankans to come out of the deeply distressing well! I wish to deal here with only one such alternative option for the President to work on.

According to Central Bank reports, during the past 20 years, worker remittances had covered around 80% of the country’s foreign exchange deficits. Worker remittances during the six years from 2015 to 2020 had averaged more than US $ 7 billion each year, improving substantially the foreign exchange liquidity in the country and in the banking system.

But in 2021 worker remittances dropped to US $ 5.5 billion and in 2022 dropped further sharply to US $ 3.8 billion! The country lost thereby US $ 1.6 billion in 2021 compared to US 7.1 earned in 2020! In 2022 we lost US $ 3.3 billion compared to 2020 as well as compared with the previous six year annual average earnings!

Sri Lanka is struggling for the past one year to get US $ 2.9 billion from the IMF having lost US $ 1.6 billion and US $ 3.3 billion, almost US $ 5 billion during the past two years, with no organized efforts to restore the forex earnings, from our own countrymen and women to the established national average of US $ 7 billion per year! Should not there be an appeal, at least at the president’s level to the Sri Lankan workforce overseas to enhance direct official remittances and also to the heads of States of countries where they are employed to give preference to Sri Lankans in fresh recruitments, without passing the buck to the Central bank or the Minister?

President Wickremesinghe knows that the IMF 2.9 billion dollars as well as what may come thereafter from the World Bank and other lenders are repayable loans with interest. All those will add up to the national debt of US $ 52 billion compelling the next generation to continue the economic struggle and for-ever be dependent on Western controlled institutions and countries. We can fall from that ladder deeper into the well! Hope not!

Indeed he and his advisors know that forex worker remittances are not repayable debts; do not involve import contents as in garment exports and stabilises the currency exchange rates in favour of Sri Lanka in terms of debt servicing and external trading.

Mr President! Restoring worker remittances to pre 2020 level of US $ 7 billion per year can become a better ladder for Sri Lanka to come out of the ‘deep distressing well’ than IMF’s US $ 2.9 billion!

Tapping and enhancing worker remittances can turn out to be a non-debt creating lasting solution to Sri Lanka’s crisis and to come out of the long term hegemonic control of international money lenders! I am no economist but will those who understand the subject better respond in the national interest to the President’s challenge?”



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No PC polls this year, says Tilvin

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Tilvin

The much-delayed Provincial Council (PC) elections cannot be held this year due to financial and legal constraints, JVP General Secretary Tilvin Silva has said in Jaffna.Silva said so, fielding questions from journalists after the opening of the NPP coordination office in the Jaffna District on Saturday.

When asked whether the government was under Indian pressure to conduct the Provincial Council elections soon, Silva answered in the negative, claiming that Sri Lankan and Indian governments maintained close and friendly relations with a strong level of understanding.

He said budgetary allocations had been made for the PC elections, but the government had been compelled to divert resources for disaster relief following the impact of Cyclone Ditwah. According to Silva, nearly Rs. 500 billion had to be allocated for relief measures, making it difficult to hold the elections this year. He further said legal complications in the electoral reform process had also contributed to the delay in holding the PC elections, noting that a parliamentary committee had been appointed to determine the electoral systems under which the PC polls should be conducted. Once the committee submitted its report and if no further issues arose, the elections could possibly be held next year, he said.

Silva also said the government had taken measures to strengthen reconciliation and development in the North by releasing lands previously occupied by military camps and improving road infrastructure.He added that empowerment initiatives were being implemented under the Praja Shakthi programme and that both Sri Lanka and India were continuing to work in close cooperation.

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Weather conditions worsen, displacing 31,000 people

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More than 31,000 people across Sri Lanka have been affected by worsening weather conditions, as the southwest monsoon intensifies ahead of its full establishment, raising fears of renewed flooding in vulnerable low-lying areas, the Disaster Management Centre (DMC) has warned.

The DMC has said 31,072 individuals from 7,983 families have already been impacted by persistent rain, strong winds and rising water levels across multiple districts, with the situation most severe in the Gampaha District where 15,313 people from 3,950 families have been affected and one death reported.

Officials have cautioned that the scale of disruption could worsen as the southwest monsoon is expected to fully establish over the island around May 26–27, bringing heavier and more sustained rainfall to the southwestern region.

At present, 18 safety centres are in operation, sheltering 1,724 displaced persons from 446 families. One person has been injured and 859 houses have been partially damaged. Two houses have been destroyed.

The Department of Meteorology has forecast increased rainfall over the coming days, warning that conditions are likely to deteriorate further as monsoon activity strengthens.

Flood-hit areas remain widespread, with river systems still under pressure despite a brief easing in rainfall on Saturday. The Kelani River has returned to normal levels, but minor flooding persists along the Kalu River basin, particularly in the Millakanda area, where tributary water levels remain elevated.

Low-lying areas in Bellapitiya, Horana, continue to be inundated, while traffic on the Bulathsinhala–Kalutara road remains disrupted due to flooding in Diyakaduwa. Authorities have also flagged continued risk in Putupawula and Ellagawa along the Kalu River.

The Attanagalu Oya basin is also slowly receding, though residents in Dunamale have been urged to remain on alert. Several homes in Ja-Ela remain underwater, with residents alleging that delayed repairs to a damaged canal embankment worsened the flooding.

In a fresh blow to infrastructure, the Swarna Hansa Podi Ela bridge in Ja-Ela collapsed on Saturday evening, further disrupting local transport links, while the main Ja-Ela–Gampaha bus route remains submerged in parts of Yakkaduwa.

Meteorologists have warned that rainfall is expected to intensify again from May 26 to 28, when the southwest monsoon is likely to be formally declared over Sri Lanka, raising the risk of further flooding and landslides in already saturated areas.

by Norman Palihawadane and Chaminda Silva

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Dickoya double murder suspect arrested

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Police said a suspect wanted in connection with the murder of an elderly couple inside a shop in Dickoya town, Hatton, had been arrested on Saturday evening (23).

The arrest was made in the Bogawantalawa police area. Acting on a tip-off, the police arrested him while he was hiding in a house on a tea estate.

Police said stolen gold jewellery had been recovered.

Preliminary investigations revealed that the suspect, originally from Badulla, had been residing in Dickoya after his marriage.

Earlier on Saturday, Hatton Police released CCTV footage of the suspect and sought public assistance to trace and arrest him.

According to police, the suspect allegedly slit the throat of the elderly woman and killed her husband using a sharp weapon on Thursday (21) before fleeing with gold jewellery valued at around 18 sovereigns, including a necklace and earrings.

Investigations further revealed that the suspect had arrived in Dickoya town on the morning of May 21 and visited several jewellery shops claiming he intended to purchase a gold necklace, while loitering in the area.

Police said that around 1.15 pm, he entered the couple’s shop and remained concealed inside the premises before allegedly carrying out the attack.

Hatton Police added that the suspect is believed to have committed the murders and left the shop around 5.30 pm the same day before going into hiding.

by Norman Palihawadane

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