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After Lanka and Pakistan, now Bangladesh lines up before IMF for bailout

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After the collapse of the Sri Lankan economy, attention has turned to the state of affairs in other South Asian countries such as Pakistan, Bhutan and Bangladesh. All three countries have either curtailed imports or are planning to do so, to salvage their fast-depleting foreign exchange reserves and avoid a Lanka-like forex crisis.

While the presence of Pakistan, which is deeply indebted to China like Lanka, and tourism-dependent Bhutan has taken a massive blow from the pandemic-induced travel restrictions on the list of troubled economies is not surprising, that of Bangladesh is. Just last year, the tiny nation was celebrated for beating India in per capita income.And the UN decided to graduate it from the least-developing country category to the developing country grouping by 2026.

Bangladesh seems to have lost that momentum as Dhaka is now beseeching the IMF for a $4.5 billion bailout package to tide over its deepening economic crisis.It has also knocked the doors of the World Bank and Asian Development Bank seeking immediate relief of $1 billion from each.So, what went wrong? Bangladesh’s $ 416 billion economy is heavily dependent on its garment industry which survives on exports mostly to Europe, the US and Latin American countries.

It has been supporting the country’s growth for years but things changed dramatically following the Ukraine war pushing the prices of everything up. In response to the soaring energy prices, the Sheikh Hasina-led government was forced to introduce scheduled outages that directly impacted the textiles industry which relies on an uninterrupted power supply.  On the other hand, demand also dwindled as retailers in the US and European markets — the biggest customers of Bangladesh’s garment products — started holding or cancelling orders due to disruptions and uncertainties in their own economies due to the war in Ukraine.

According to the latest available data, Bangladesh’s foreign exchange reserves stand at $39.67 billion as of July 20, which is sufficient for just four months’ worth of imports — slightly higher than the IMF’s recommended three-month cover.Just for comparison, the forex reserves were $ 45.5 billion in the year-ago period.

The country is reeling under inflation, too. In June, price rise hit a nine-month high of 7.56%, taking the average inflation for 2021-22 to 6.15%, overshooting the revised annual target of 5.9%.Bangladesh’s imports stood at $81.5 billion between July 2021 and May 2022, up 40% from a year earlier, according to Bangladesh Bank data.As a result, the current account deficit — the shortfall between exports and imports — widened over six times to $17.2 billion in the first 11 months of fiscal 2021-22.

While the Bangladesh finance minister A H M Mustafa Kamal is confident that the IMF aid will help the country tide avoid a crisis, such bailouts always come with strings attached. The Washington-based multilateral lender is known to put stringent conditions for its loans.

According to a report in The Daily Start newspaper, the conditions could include withdrawal of energy subsidies, implementing a fuel pricing mechanism, removing interest rate caps on lending and borrowing, resetting the mechanism to calculate foreign currency reserves, taking steps to increase revenue base, and strengthening corporate governance in the banking sector.

Of these, removing energy subsidies for consumers will be a major challenge for the government as it could trigger public anger. Negations on this clause is likely to drag the process.Obtaining IMF loans is a long process. An IMF delegation is expected to visit Dhaka in September to discuss the terms and conditions.By December, the deal is expected to be locked in for placing at the IMF’s board meeting in January. The question is, will Dhaka be able to manage things till then. (NIE)



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National Communication Programme for Child Health Promotion (SBCC) has been launched. – PM

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Prime Minister Dr. Harini Amarasuriya stated that the Government has commenced necessary measures to maintain preschool education under a framework, align preschool education with a unified curriculum, conduct teacher training in a systematic manner, and ensure quality standards.

The Prime Minister made these remarks on Saturday (10) at the Temple Trees, participating in the launch of the National Communication Programme for Child Health Promotion, aimed at promoting social and behavioural change (SBCC) among early childhood children. The programme is jointly organized by the Health Promotion Bureau, the Ministry of Women and Child Affairs, the Ministry of Education, Higher Education and Vocational Education, UNICEF, and the Clean Sri Lanka Programme.

Addressing at the event, Prime Minister Dr. Harini Amarasuriya stated:

“Early Childhood Development (ECD) has a major impact on a country’s human development and future progress. It is a widely accepted fact that a child’s future depends largely on early childhood development. Many aspects essential for a child’s growth occur within the first five years of life. The experiences, care, and love a child receives during this period are decisive.

The social integration, relationships, and environmental influences experienced in early childhood form the foundation for shaping an individual as an adult. Early childhood development influences life to an extent that it becomes difficult to change when it grows into adulthood.

The responses of adults to children’s actions, the way they interact with them, and the care they provide are extremely important. Therefore, early childhood development should never be viewed as the sole responsibility of parents. It is a collective responsibility of all citizens.

No child can be raised into a good citizen by parents alone. In all our lives, beyond our parents, there have been many who influenced us, showed us love, and provided care. It is due to the collective support of all these individuals that we have reached where we are today. The government views child care as a social responsibility. Supporting a child, providing care, ensuring protection, education, and health facilities are social responsibilities. In this regard, the intervention of the Clean Sri Lanka Programme to communicate these values to the public is important.

The role of the preschool teachers plays a special and vital role for children. The love, care, attentive listening, and responses children receive during this stage are decisive for their development. Teachers carry out a crucial intervention in the lives of children. An education policy on early childhood development has been formulated, with UNICEF providing technical assistance. Steps are being taken to operate preschool education under a single framework, align it with a unified curriculum, systematically conduct teacher training, and ensure quality standards.

Recognising early childhood development as a specialised area within education, the Prime Minister affirmed that the relevant interventions will be made accordingly.

Addressing the event, Minister of Women and Child Affairs, Ms. Saroja Paulraj stated that the Ministry has identified the standardisation and development of early childhood development as a primary goal for the year 2026. She noted that children who leave the warmth of their mother’s embrace and father’s shoulder and come to preschool teachers expecting the same love and care from their teachers. Conveying that warmth through words and expressions is a responsibility entrusted to teachers. The love and safe environment children receive shape their ability to love the environment and respect others.

Minister of Health and Mass Media,  Nalinda Jayatissa, also addressed the gathering, stating that the goal of the government is to build a beautiful future generation capable of leading the country, free from the various hardships and challenges faced today.

He emphasised that creating a healthy population is a challenge, particularly in preventing non-communicable diseases. Children aged three to five today will become a generation aged 18 to 20 by 2040. Continuous and comprehensive programmes such as this are essential to protect that generation from non-communicable diseases. In some instances, interventions are required even during the preconception and prenatal stages.

He further highlighted that preschool and early childhood development centre teachers shoulder a tremendous responsibility in driving a major transformation in the country’s future.

The event was attended by the Governor of the Sabaragamuwa Province, Ms. Champa Janaki Rajarathne; the Governor of the Uva Province, Attorney-at-Law  Kapila Jayasekara; the Governor of the North Central Province,  Wasantha Jinadasa; the Governor of the North Western Province,  Thissa Kumarsiri Warnasuriya; the Deputy Minister of Women and Child Affairs, Dr. Namal Sudarshana; the Member of Parliament, Dr. Najith Indika; the Representative of the United Nations Children’s Fund (UNICEF) in Sri Lanka, Ms. Emma Brigham; the Secretary to the President, Dr. Nandika Sanath Kumanayake; the Senior Additional Secretary to the President (Finance and Economic Affairs), Mr. Russell Aponsu; the Additional Secretary to the President (Clean Sri Lanka), S. P. C. Sugishwara; Secretaries to Ministries; Provincial Chief Secretaries; the Commanders of the Tri-Forces; officials of subject-related ministries; provincial council officials; preschool teachers; preschool children; and parents.

(Prime Minister’s Media Division)

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Level I landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara-Eliya extended

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The  Landslide Early Warning Centre of the National Building Research Organization (NBRO) has extended the landslide early warnings issued to the Districts of Badulla, Kandy,  Matale and Nuwara-Eliya till 1600hrs today (11).

Accordingly, the LEVEL I YELLOW early warnings issued to the Divisional Secetaries Divisions and surrounding areas of Lunugala, Meegahakiwula,Welimada, Kandaketiya, Hali_Ela, Badulla, Uva  Paranagama in the Badulla district,  Minipe and Ududumbara in the Kandy district, Wilgamuwa, Ukuwela, Ambanganga Korale, Rattota and Laggala_Pallegam in the Matale district, and Nildandahinna,  Walapane, Mathurata and Hanguranketha in the Nuwara-Eliya district will be in force until 1600hrs today (11)

 

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Experts: NPP education reforms unsuitable for SL

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Proposed education reforms have drawn sharp criticism from education professionals, teacher unions and student organisations, who warned on Thursday that the changes risk undermining child safety, widening inequality and imposing unaffordable costs on parents.

Addressing a press conference in Colombo, Dr Ayomi Irugalbandara of the Faculty of Education at the Open University of Sri Lanka said the proposed reforms appeared to be largely modelled on foreign education systems without adequate consideration of local realities.

She took particular issue with proposals to integrate social media use into the school curriculum, noting that several developed countries have moved in the opposite direction by preventing children under the age of 15 from accessing social media platforms.

“Most of these modules are not appropriate for this country,” Dr Irugalbandara said. “We warn parents that these reforms place children at risk.”

Concerns were also raised over digital content linked to the revised curriculum. Inter-University Students’ Federation Convener Madushan Chandrajith said the Grade Six Information and Communication Technology (ICT) module included QR codes that directed students to a controversial YouTube channel.

“Who will take responsibility for children accessing such content?” he asked, calling for clear accountability mechanisms for material linked through digital platforms used in schools.

Secretary of the Workers’ Struggle Centre, Duminda Nagamuwa, criticised the government’s approach to the reform process, comparing it to the fertiliser policy introduced under former President Gotabaya Rajapaksa. He alleged that the authorities were pushing ahead with education reforms despite opposition from academics, teachers and other stakeholders.

Nagamuwa also highlighted the economic burden on families, noting that Sri Lanka’s poverty rate had increased from 12.5 percent to 25 percent. He questioned how parents were expected to afford smartphones or tablet computers required for students to access QR code-linked educational content.

“The government is asking parents to bear costs they simply cannot afford,” he said.

Ceylon Teachers’ Union General Secretary Joseph Stalin said schools had already begun collecting money from parents in anticipation of the reforms, including funds to purchase smart boards.

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