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2024-09-12

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Editorial

Cost puzzles

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Saturday 8th February, 2025

The government has not yet disclosed its costing formula for paddy. It only releases information about cost calculations in dribs and drabs in an unorganised manner, which has left the public none the wiser. Farmers insist that their production costs are much higher than the guaranteed prices announced by the government; some of them have even claimed that the average certified paddy price should be above Rs. 140 a kilo.

Deputy Minister of Agriculture Namal Karunaratne told Parliament yesterday that the guaranteed prices of paddy had been properly worked out, and they included a 30% profit margin. The production cost of red kekulu paddy was only Rs. 76, and the farmers of that variety of rice earned a profit of Rs. 44 per kilo, he said. Interestingly, the guaranteed price of red kekulu paddy has not been specifically mentioned in government communiques on guaranteed paddy prices. Karunaratne also claimed that it cost farmers only Rs. 91 to produce a kilo of white nadu paddy, which fetched Rs. 120 although its actual cost plus the 30% profit amounted to only about Rs. 118. But paddy farmers say their production costs are much higher.

How can there be such vast cost discrepancies? Who is telling us the truth—the paddy farmers or the government politicians/officials? Will the two sides present itemised cost estimations for the public to decide whose claims are credible? The current cost calculations lack transparency and credibility. Most of all, on what basis was the 30% profit margin for paddy determined? Was it just plucked out of the air?

Deputy Minister Karunaratne told Parliament yesterday that in calculating the paddy production costs, the fertiliser subsidy had not been taken into consideration. The government ought not to ignore such vital factors when costs are estimated. The public, who bears the cost of fertiliser subsidy, must not be made to pay higher prices for rice unfairly.

Going by Deputy Minister Karunaratne’s statements at issue, the government can be accused of having facilitated the exploitation of the red rice consumers by placing the profit margin for the growers of that variety of rice far above the stipulated 30% level. The government should have taken steps to ensure that at least one variety of rice was reasonably priced for the benefit of the ordinary people who are getting by on shoestring budgets. It would also have been politically wise for the government to do so ahead of the local government elections slated for late April.

Subsidies for farmers could be considered an investment in the agricultural sector, for they help incentivise cultivators and keep production costs low. The government is duty bound to ensure that the benefits of subsidies accrue to the public, who bears the cost of them. Therefore, the fertiliser subsidy, or at least a part thereof, should have been factored in when the paddy production costs were calculated.

How does the government propose to prevent rice millers from making unconscionable profits? They have benefited from a 30% power tariff reduction, which must be passed on to the public. Rice wholesalers and retailers must also be prevented from fleecing the public. The government, which has failed to protect rice consumers against rapacious businesses bent on exploiting them, should get its act together.

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India and Sri Lanka commit to more cooperation in education and skills training

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To commemorate 60 years of capacity-building partnership between India and Sri Lanka, through the Indian Technical and Economic Cooperation (ITEC) programme, the High Commission of India in Colombo celebrated ITEC Day 2025 on Wednesday (05).

High Commissioner of India to Sri Lanka Santosh Jha and Deputy Minister of Foreign Affairs, Foreign Employment and Tourism, Arun Hemachandra, graced the occasion. The event was attended by over 200 participants, including ITEC alumni from Sri Lanka, as well as officials and professionals from diverse sectors who have benefited from various training courses in India, under different ITEC programmes.

 In his address, Arun Hemachandra lauded ITEC initiative for not only serving as a conduit for knowledge exchange but also as a bridge fostering strong bilateral ties built on historical, cultural, and economic affinities. The Minister highlighted India’s commitment to international cooperation through the ITEC programme, which focuses on capacity building, knowledge sharing, and skill development for partner countries. He expressed heartfelt gratitude to the Government of India for its unwavering support through the ITEC programme, which has been instrumental in empowering Sri Lanka’s professionals and enhancing public service capabilities. He also acknowledged the contributions of ITEC alumni, whose expertise strengthens bilateral relationships and enhances global collaboration.

Speaking on the occasion, the High Commissioner acknowledged the keen interest Sri Lankan officials have shown in the ITEC programme over the years. He emphasized India’s commitment to supporting Sri Lanka’s education sector, including higher education, through partnerships between academic institutions in both countries, and informed that in addition to the 402 ITEC slots currently allocated annually, 1500 Sri Lankan officers will be trained at the National Good Governance Centre (NGGC) in India. He reiterated that India, guided by the philosophy of ‘Vasudhaiva Kutumbakam’ (The world is one family), will continue to play a leading role in capacity-building initiatives for Sri Lanka.

 Senior officials reflected on their experiences with ITEC training in India, expressing deep appreciation for the programme’s comprehensive and multidisciplinary approach. They highlighted the diverse range of training areas, including inclusive governance, climate change, renewable energy, digital transformation, startup ecosystems, artificial intelligence in governance, cybersecurity, quality management, quantum computing, information science, and fostering innovation, incubation, and entrepreneurship. These programmes have equipped participants with valuable insights and practical skills, enabling them to drive progress and contribute effectively to their respective fields.

 Launched in September 1964, ITEC is a flagship programme of the Government of India aimed at extending technical assistance and enhancing capacities in developing countries. It has become a key instrument in India’s contribution to human resource development, with over 200,000 individuals from 160 partner nations having participated in the programme. Sri Lanka currently benefits from more than 500 annual training slots under ITEC. ‘ITEC Day’ is celebrated each year by Indian diplomatic missions worldwide, underscoring this unique pillar of Global South cooperation.

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Protesters slam Attorney General’s alleged moves to drop key cases

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Protestors. Pic by Nishan S. Priyantha

By Pradeep Prasanna Samarakoon and A.J.A. Abeynayake

Journalists, civil activists, lawyers, and members of civil organisations staged a protest on Thursday (06) to voice concerns over alleged moves by the Attorney General to withdraw from several high-profile cases, including one pertaining to the murder of The Sunday Leader editor Lasantha Wickrematunge.

Protesters displayed placards with slogans such as “Deliver justice for the slain Mahara prisoners,” “Justice for Lasantha,” and “Attorney General, go home,” and continued their demonstration for over an hour and a half.

During a media briefing at the protest, lawyers claimed that certain unlawful actions by the Attorney General’s Department, carried out in contravention of legal provisions, were encroaching on the rights of victims.

Among the cases highlighted were the Mount Lavinia Magistrate’s Court inquiry into Lasantha Wickrematunge’s murder, the case involving the killing of 11 inmates at the Mahara Prison, and the Balapitiya High Court case regarding the murder of Mahesh Indika, alias Poddi Indika, of Embilipitiya. Protesters alleged that the Attorney General had recently withdrawn or was preparing to withdraw from these matters.

Following the protest, a group of five representatives—including lawyers, journalists, and civil organisation members—visited the Attorney General’s Department to hand over a letter detailing their concerns.

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