News
Cash-strapped SLPP can’t afford Rs 229 bn package, says SJB
Top Samagi Jana Balavegaya (SJB) spokesperson and economic guru Dr. Harsha de Silva said yesterday the cash-strapped government couldn’t afford to provide a Rs 229 bn relief package at the moment. In response to The Island queries, Dr. de Silva has sent us the following statement: “The government is losing control of the economy. At this rate we will be a free fall fairly soon. Looks like they are hallucinating. The solution offered has absolutely no relevance to the problem we are facing. We are in a Balance of Payments crisis. We have no dollars. That’s the problem. Fixing it with a swap here and a credit line there is nothing but plaster solutions. We need real reform. I doubt anyone but ourselves can help us now. It’s too late.
But instead of addressing that, other than to say in the Cabinet Paper that the country can absorb an adjustment of the LKR to market rates (which they estimate at Rs 230 to the USD) on a completely flawed logic and therefore it must be artificially held at 200 and VAT cannot be adjusted (to what it was), they have introduced this relief package.
Well, the people are feeling the high cost of living. Official Inflation is double digit after 13 years and food inflation is 22%. Unofficially it’s almost double that. So, yes people need help. Mind you this was created by this government. Two major wrong deductions. One, unprecedented and unnecessary tax cuts in Dec 2019. Two, a totally destructive ban of fertilizer. These had nothing to do with the pandemic. Yea the pandemic has an impact but these two decisions are what brought us to this almost bankrupt situation.
Anyway, since no supplementary estimates can now be brought to Parliament (passed by 2/3 this budget) and he says no taxes will be increased the question is where is the LKR 229b going to come from? Unless they cut capital expenditure, where will they find the money? But it is almost guaranteed they will not do so, including the LKR 100b to be dished out to local government members to prepare for LG elections. So ultimately the Central Bank will end up printing all this money.
We now are the lucky recipients of the fabulous outcomes of two years of money printing Modern Monetary Theory experiment. This round of printing will only exacerbate the problem by starting a wage-price inflation spiral. Almost text book style, if anyone in their government wishes to consult a basic Economics text.
We are heading for disaster.”
Latest News
Sun directly overhead Mannar, Periyamadu, Puliyankulam, Welioya and Pulmoddai about 12.11 noon today (30)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (30) are Mannar, Periyamadu, Puliyankulam, Welioya and
Pulmoddai about 12.11 noon.
News
Lanka tracks 11 US-sanctioned Iranian tankers off coast
(AFP) Sri Lanka’s maritime authorities were monitoring a fleet of 11 US-sanctioned Iranian oil tankers just off the island’s southern coast, the foreign minister said Wednesday.
The tankers were spotted close to the Galle harbour where an Iranian frigate, IRIS Dena, was sunk by a US submarine in March, killing 104 sailors. Sri Lanka’s navy rescued 32 Iranian sailors from that frigate.
Iranian vessels have been in limbo, unable to return to their home port because of a US blockade.
Sri Lanka’s Foreign minister Vijitha Herath said the tankers were in international waters where they had freedom of navigation.
“These ships are away from our territorial waters… we have no hold on them, nor have we facilitated them,” Herath told AFP.
The military deployed reconnaissance aircraft and patrol boats to monitor the vessels outside Sri Lanka’s 12-nautical-mile territorial waters, a military official told AFP on condition of anonymity.
“There is no indication of any ship-to-ship transfer of oil or illegal discharge of pollutants, so there is no basis for Sri Lankan authorities to take action against them,” the official said.
Many Iranian merchant vessels moved east towards the Strait of Malacca and Singapore due to US sanctions, while several remained near Sri Lankan waters, authorities said.
Sri Lankan officials said Washington had not formally notified Colombo about sanctioned Iranian-flagged vessels
News
House to debate abolition of Chief of Defence Staff post
Parliament is to debate next Wednesday the Government’s proposal to abolish the post of Chief of Defence Staff (CDS), with the Second Reading of the Chief of Defence Staff (Repeal) Bill scheduled for September 9.
The Bill seeks to repeal the Chief of Defence Staff Act No. 35 of 2009, which was introduced shortly after the end of the armed conflict.
According to Secretary General of Parliament Kushani Rohanadeera, Parliament will meet from September 8 to 11, with the business for the week approved by the Committee on Parliamentary Business chaired by Speaker Dr. Jagath Wickramaratne.
The debate on the Chief of Defence Staff (Repeal) Bill is scheduled to take place from 11.30 a.m. to 5 p.m. on Wednesday, following questions to the Prime Minister and other parliamentary business.
The CDS post was established under the 2009 Act as part of the country’s higher defence command structure.
On Tuesday, September 8, the House will consider two Orders published in Extraordinary Gazettes under the Motor Traffic Act from 11.30 a.m. to 5 p.m., followed by an Opposition motion at the adjournment.
On Thursday, September 10, Parliament will debate a Resolution under the Women’s Empowerment Act.
The final sitting day of the week, Friday, September 11, has been allocated from 11.30 a.m. to 5.30 p.m. for several Private Members’ Motions.
The motions will cover issues including regulation of the petroleum, fuel and water industries, measures to increase the birth rate, protection of the Diyagama Forest, pension deductions affecting Pirivena teachers, food-crop cultivation in mountainous areas, development of the Kithul industry and the establishment of a Faculty of Medicine at South Eastern University.
Questions at the adjournment will be taken up at the end of each sitting day.
-
News5 days agoMissing doctor’s body found in Mahiyanganaya
-
News5 days agoAustralia declines to release Finance Secy Suriyapperuma’s citizenship details
-
News5 days ago22A: BASL suggests CJ recuse himself from hearing petitions
-
News2 days agoEight politicians in drug kingpin probe
-
Editorial6 days agoGovts. drag feet as undergrads age
-
Features4 days agoInsights from Chieftains of Uva: Genealogy of two Kandyan Families – Part II
-
Features4 days agoExport diversification: Missing the wood for the trees – Part I
-
Business2 days agoSri Lanka opens up: A new season of direct connectivity
