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CA to take up BASL petition against CB decision to convert dollar earnings into rupees 

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By A.J.A. Abeynayake

The Court of Appeal yesterday decided to consider on 20 Jan. a petition filed by the Bar Association of Sri Lanka (BASL) seeking the issuance of a writ order nullifying the Extraordinary Gazette Notification issued by the Governor of the Central Bank of Sri Lanka mandating the conversion of foreign currency received through bank accounts into Sri Lankan rupees.

The petition filed by President of the Bar Association of Sri Lanka, Saliya Peiris PC, and Anura Maddegoda PC, Deputy President of the Association, was taken up yesterday before a bench comprising Justices Sobhitha Rajapakaruna and Dhammika Ganepola.

The Governor of the Central Bank Ajith Nivard Cabraal, the Monetary Board of the Central Bank of Sri Lanka, the Minister of Finance Basil Rajapaksa and the Attorney General have been named as respondents.

Attorney-at-Law Ruwantha Cooray appearing for the Central Bank Governor and the Monetary Board of the Central Bank asked for time to obtain further instructions from his clients on matters contained in the petition.

K. Kanag-Iswaran PC appearing for the petitioners opposed to delaying the process on the grounds that the petitions had been filed on an issue of national importance.

Lawyers Nigel Bertholameuz, Lakshman Jayakumar, Niranjan Arulparagasam, Shivan Kanag Iswaran and Senior Lawyer K Kanag Iswaran PC appeared for the petitioner BASL on instructions of Attorney-at-Law G.G. Arulpragasam.

The petition filed by Attorney-at-Law G.G. Arulpragasam states that the petitioners’ Association is an organisation that deals with the rights of lawyers, human rights and the rule of law.

Attorneys who are members of the Petitioners’ Association have so far received fees from their clients in foreign currency, both inside and outside Sri Lanka. For this, they had the ability to receive foreign currency directly from both the personal resident foreign currency account and the foreign deposit account, as well as through commercial bank accounts.

So far, there has been no need to convert the foreign currency into rupees. The members of the Petitioners’ Association have done a great service to the country so far, earning a large amount of foreign exchange.

Foreign currency earned by importers or international traders as well as members of the BASL can be withdrawn directly from Sri Lankan accounts.

Despite this situation, on 28 October, the Governor of the Central Bank issued an Extraordinary Gazette Notification 2251/42 – “Repatriation of Export Proceeds into Sri Lanka Rules No. 5 of 2021” under the Section 10.1 of the Finance Act.

This gazette notification made it mandatory to convert foreign currency received into the country through bank accounts into Sri Lankan rupees.

It is unlawful to order the foreign currency to be converted into Sri Lankan rupees without the consent of the members of their association. It is also against Article 140 of the Constitution.

This is also against the principle of natural justice.

Further, the Governor of the Central Bank and the Monetary Board have taken steps to issue this gazette notification in violation of the provisions of the Foreign Exchange Act. This is a law of the jungle.

Therefore, the BASL has requested the court to issue notice to the respondents, issue a writ order nullifying the relevant gazette notification and an interim order restraining the execution of the relevant gazette notification.



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“Foreign bond holders more important to govt. than hard-pressed people”

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SJB slams GR’s policy speech

The main opposition SJB says that President Gotabaya Rajapaksa’s Policy Speech delivered in Parliament on Jan 18 failed to provide solutions to the crises faced by the country.

Addressing a press briefing held at the Opposition Leader’s Office in Colombo on Thursday, SJB MP Eran Wickremaratne said that the crises with regard to economic management and governance had gone beyond the control of the government subjecting the masses to severe hardships without essential goods and services.

Wickremaratne said that  there had been no increase in the value of  GDP supporting the domestic and foreign borrowings by this government during the last two years.

He accused the government of giving priority to paying off debts of foreign cronies while  starving the people without essential foods inclusive of fuel for electricity generation.

“People who could not afford to basic necessities despite having cash in hand due to the shortage of dollars and foreign exchange now had to stay in the dark for several hours a day without electricity due to lack of fuel as the govt has not been able to maintain a supply chain properly. But the government, having crossed its wires, gives priority to repaying the loan to its cronies while mounting pressure on its citizens,” Wickremaratne said.

“President Rajapaksa’s Throne Speech did not provide answers to any of  the current problems  facing the country. Although the country faced two major problems, there was no answer to either of them in the President’s policy statement.

“First, rising commodity prices push up inflation increasing  vegetable prices. Secondly, the import of essential commodities has come to a complete standstill due to the foreign exchange deficit. There is a shortage not only for  food and fuel but also for  medicines for the people.”

He said only 25% of the country’s essential medicines are produced locally and the rest are imported. There is also a shortage of essential medicines due to lack of dollars for imports.

At a time when the people are under so much of  pressure, the government is  boasting of servicing   international sovereign bonds on time. People need to be told the secret of why foreign debtors are more important to the government than the citizens of the country, Wickremaratne said.

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COVID-19 on the rise again; 800+ new cases a second day running

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(Economynext) New COVID-19 cases are on the rise again in Sri Lanka, with health authorities detecting over 800 new infections on Thursday (20) for a second consecutive day.

With the 827 new cases, total cases in the country have gone up to 599,363, official data showed.

Around 15,279 patients are currently receiving treatment in hospital or at home.

With 12 deaths reported in the last 24 hour period, the island nation’s COVID-19 death toll has reached 15,243.

Health authorities warned that the sector could face challenges managing new patients if daily cases continue to surge.

Officials are also concerned about an apparent hesitance for the booster dose of the vaccine that was largely absent in the initial rollout.

“We have provided the opportunity to get the booster countrywide. But because the fatality rate is now low people may think taking it is no longer necessary,” State Minister of Pharmaceutical Production Channa Jayasumana said speaking to journalists on Friday (21).

“Sri Lanka will go back to the previous state with people not taking the booster dose,” he warned.

The booster rate is very low compared to Sri Lanka’s otherwise impressive vaccination numbers, said Jayasumana.

“Only 4.8 million have taken the booster so far, and only 26,796 came forward yesterday to get it.

“With the increase of patients, even though the fatality rate is low, it can be overwhelming for the health sector if patient numbers in hospital wards and ICUs go up.”

Sri Lanka has so far vaccinated 16.3 with the first dose while 13.8 have received both doses.

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Prevention, cooperation, mutual assistance essential to counter connected nature of terrorists in South Asia – Army Chief

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Prevention, cooperation and mutual assistance in controlled measures at international borders are essential to counter the transnational and connected nature of terrorists and criminal activists in the South Asian region, said Chief of Defence Staff and Army Commander General Shavendra Silva on Thursday, emphasising on the need of law enforcement’s institutional reforms based on common and agreed policies.”

“In the legitimate government efforts to fight terrorism or organised crimes, in this regard, a possible South Asian regional treaty could promote counter-terrorism and anti-crime measures by promoting institutional structures and decision-making processes to promote cooperation, coordination, shared expertise and common legal approaches,” said Silva while virtually addressing the “Countering use of Crypto Currencies to Finance Terrorism” event on Thursday.

“Due to the transnational and connected nature of terrorists and criminal activists in our region, prevention, cooperation and mutual assistance in controlled measures at international borders are essential,” he added.

The General also said that there are avenues for collaboration by establishing information exchange at customs, imposing immigration barriers and commonly agreeing on the regulation of transporting and stockpiling of weapons and drugs, dangerous goods or potential warlike equipment.

Emphasising that mutual assistance can be enhanced by extending measures for collecting evidence of suspects, exchange of wanted personnel and etc, Silva said that enhancing the capacities of regional countries to handle terrorism and criminals would depend extensively on the training of law enforcement agencies.

“Apart from training for military personnel, of a particular country, it is also essential to carry out joint training for various armed forces of the South Asian region. Conducting counter-terrorism operations at a regional scale would also require regional funding. It is understood that funding counter-terrorism campaigns in recent times has become quite expensive due to the sophistication of insurgence,” Silva added.

The General also said that “this is where we need cooperation as very experience armies, who have long been engaging in counter-terrorism operations, we have specialities, therefore we can share each other’s specialities to counter each other’s imitations.”

“Law enforcement’s institutional reforms based on common and agreed policies and principles in the regional countries feel enhanced the compatibility between the countries in fighting transnational crimes and terrorism,” he added. (ANI)

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