News
Zuhair says restoring worker remittances one way of overcoming crisis
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?”
Three prison guards attached to the Welikada Prison have been arrested by Borella Police following the death of an inmate on Monday (04).
‘Bar Association must reveal its stand’
Civil society group ‘Free Lawyers’ has requested Chief Justice Preethi Padman Surasena to probe whether political pressure was brought on a Magistrate, or a High Court Judge, in respect of an ongoing high profile case.
Speaking to The Island on behalf of ‘Free Lawyers,’ Rajith Keerthi Tennakoon said that they felt the urgent need to seek the CJ’s intervention, following the May Day declaration by President Anura Kumara Dissanayake that the verdict of a case that was heard on 30 April would be given on 25 May. Tennakoon said that addressing the NPP’s main May Day rally at Maharagama, the President asked the people to be ready to celebrate that verdict. The President couldn’t have said so if he hadn’t been aware of the impending verdict, Tennakoon said, while emphasising the responsibility on the part of the Bar Association to state its position on the issue.
‘Free Lawyers’ recently captured pubic attention following its exposure of the theft of USD 2.5 mn from the Treasury.
Responding to a query, Tennakoon said that on behalf of ‘Free Lawyers,’ Maithri Gunaratne, PC, on Monday, 4 April, wrote to both CJ Surasena and President of the Bar Association Rajeev Amarasuriya.
Alleging that President Dissanayake’s declaration caused immense harm to the independence of the judiciary and raised controversy over the judgement that would be given on 25 May, ‘Free Lawyers’ organisation also asked the CJ to inquire into whether the entire judicial process was under political pressure.
Tennakoon said that they expect the Bar Association to reveal its position on President Dissanayake’s statement. Tennakoon pointed out that during the May Day address, President Dissanayake made reference to 15 cases that were to be taken up during this month, whereas Transport, Highways and Urban Development Minister, as well as Leader of the House Bimal Rathnayake, mentioned nearly 10 names of politicians, both sitting and former lawmakers, to be summoned beginning, May.
Tennakoon said that the NPP appeared to have used May Day to counter growing accusations over the Colombo port container controversy, coal scam, Rs 13.2 bn NDB fraud and theft of USD 2.5 mn from the Treasury and USD 625,000 from the Sri Lanka Postal Service.
By Shamindra Ferdinando
The Canadian High Commissioner to Sri Lanka and the Maldives, Isabelle Martin over the last weekend met representatives of the Ilankai Tamil Arasu Kachchi (ITAK) in the East. Tamil Guardian reported that talks focused on the challenges facing the Tamil people.
The meeting was held at the office of ITAK Member of Parliament Kaveendiran Kodeeswaran and brought together parliamentarians representing the Batticaloa and Ampara districts, alongside local government officials including divisional council chairpersons.
Discussions centred on a range of pressing issues, including livelihoods, access to education, employment opportunities and ongoing human rights concerns, as well as the broader state of democratic governance in the region.
High Commissioner Martin sought updates on prevailing socio-economic conditions, particularly the challenges confronting local communities in the East. She noted the concerns raised and indicated that she would follow up on the matters discussed.
Among those present were ITAK MPs Kaveendiran Kodeeswaran, Gnanamuthu Sirinesan and Dr Elayathamby Srinath, along with several local council representatives.
Three prison guards arrested following the death of an inmate
Showers or thundershowers will occur at most places of the island after 1.00 pm.
CJ urged to inquire into AKD’s remarks on May 25 court verdict
ITAK MPs representing East take their woes to Canadian HC
People demand release of Keppapilavu land
Sajith calls VAT hike extortion, demands relief for the public
‘Dates have the highest sugar content to fight Coronavirus’
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