News
CBSL Chief: Economy could be stabilised in year or so if …
By Hiran H. Senewiratne
The prevailing Balance of Payments (BoP) crisis could lead to a major social crisis as the available foreign reserves were only sufficient for a few weeks’ imports, Governor of the Central Bank Dr. Nandalal Weerasinghe warned on Monday.
“The economy can be stabilised in the next 12 month if the IMF negotiations and debt restructuring are finalised within the next seven to eight months. Until then we have to support the poor people,” Dr. Weerasinghe said, addressing a seminar on the “State of the Economy and Talks with the IMF”. It was organised by the Press Club, together with the Press Institute, at Colombo Hilton.
The CB Governor said the current BoP crisis would worsen and, therefore the economic pain could only be minimised if essential policies and measures were implemented in an expeditious manner. But “IMF technical level virtual meetings are likely to conclude this week, and thereafter further discussion will take place to finalise everything,” Dr. Weerasinghe said.
Dr. Weerasinghe suggested that the monetary and fiscal authorities tighten the monetary policy by higher margins and fiscal policy by restoring tax rates to pre-2020 levels.
The Governor said, “We have three categories of creditors namely International Sovereign Bonds, which raise short term funds from global markets, which account for 35 percent of the government debt, while other two creditors are Paris Club and non-Paris Club (India and China).
Dr. Weerasinghe said that the country’s debt needed to be brought to a sustainable level. “For that purpose a debt sustainability analysis needs to be drafted with a fiscal policy for the IMF bailout”, he said.
Speaking about the country’s worsening economic fundamentals, Dr. Weerasinghe said: “The nation is currently experiencing a historically low economic growth and falling trend of per capita GDP since 2017 with rising levels of poverty. It is also running the highest fiscal deficits since 1988 with the lowest ever government revenue as a percent of GDP.
“Amid those developments Sri Lanka’ poverty level will increase, unemployment level soar and local industries will have to shut down due to restriction of importation of raw material. Therefore, we have to seek humanitarian assistance from the World Bank, Asian Development Bank and other bilateral and multilateral agencies”, the Governor said.
“We are seeking short-term bridging facilities from official creditors until an agreement is reached with creditors on restructuring,” he said.
In his presentation, Dr. Weerasinghe analysed the links between banking and the currency crises. He pointed out that the problems in the banking sector typically precede a currency crisis with the currency crisis deepening the banking crisis, thus activating a vicious spiral.
Sri Lanka also had the highest-ever government debt which was unsustainable at the moment. Debt dynamics might be worsening in the next few years unless the debt was restructured, he said.
Sri Lanka also recorded the highest rate of inflation in 12 years which was increasing sharply and was experiencing the highest-ever levels of money printing by the CBSL, he added
Business
Newly appointed ADB Country Director to Sri Lanka and delegation meet PM
The newly appointed Country Director of the Asian Development Bank for Sri Lanka Ms Shannon Cowlin and the accompanying delegation met with Prime Minister Dr. Harini Amarasuriya on Tuesday [0th of February] at the Prime Minister’s office.
Welcoming the delegation, the Prime Minister extended congratulations to the newly appointed Country Director and acknowledged the long-standing partnership with the Asian Development Bank. The Prime Minister also expressed appreciation for ADB Bank’s continued engagement and support aligned with Sri Lanka’s national development priorities.
The Prime Minister also conveyed gratitude for the timely assistance extended by the ADB in response to Cyclone Ditwah, noting the importance of such support in mitigating the immediate impacts of natural disasters.
The ADB delegation reiterated its readiness to further assist Sri Lanka during the post-cyclone recovery phase, including rebuilding and reconstruction efforts, and emphasized its commitment to the supporting the education sector.
The meeting was attended by OIC / Deputy Director General, SARD Ms. Sona Shrestha, Ms. Cholpon Mambetova Country Operations Head of ADB Sri Lanka Mission Resident, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta, Director General of the External Resource Department, Ministry of Finance Samantha Bandara, Director for ADB Division in External Resource Department, Ministry of Finance Ranjith Gurusinghe.
[Prime Minister’s Media Division]
News
School student transport services are being regulated
A discussion on regulating school student transport services was held on the 09th of February at the Prime Minister’s Office under the patronage of Prime Minister Dr. Harini Amarasuriya, with the participation of officials from the National Transport Commission and the Ministry of Education.
The authority for regulating school student transport has been vested with the National Transport Commission, and as the relevant draft of regulations have already been prepared, discussions were held on the provisions contained in these drafts as well as on new proposals that should be incorporated.
During the discussion, the attention was focused on meeting the emerging needs of transportation arising from the schools, minimizing issues encountered in the transportation of school students by establishing an organized transport mechanism, and deploying the “Sisu Sariya” school transport service in a more efficient and effective manner followed by the new educational reforms process.
Discussions were also held on introducing laws and regulations to systematize the transportation of schoolchildren, prioritizing child protection by preventing reported incidents of abuse and harassment during student transport, and enhancing professionalism among school transport service providers to ensure a responsible and accountable service.
The focus was also emphasized on the need for coordinated action among the Ministry of Transport, Highways and Urban Development, the National Transport Commission, the Ministry of Education, Higher Education and Vocational Education, and the National Child Protection Authority.
The discussion was attended by the Minister of Transport, Highways and Urban Development Bimal Rathnayake, Chairman of the National Transport Commission P. A. Chandrapala, officials of the National Transport Commission, and the officials from the Ministry of Education, Higher Education and Vocational Education.
[Prime Minister’s Media Division]
News
SLPP MP killing: 12 Aragalaya activists sentenced to death
… ex-Public Security Minister says lives of MP and bodyguard could have been saved
The Gampaha High Court Trial-at-Bar yesterday (11) sentenced 12 persons to death by hanging over the May 9, 2022, killing of former Polonnaruwa District SLPP MP Amarakeerthi Athukorala and his police bodyguard. They were among altogether 39 persons tried by the High Court for the double murder. Of the remaining accused, four persons were handed six-month sentences, suspended for five years, and 23 others acquitted by the Gampaha High Court Trial-at-Bar, consisting of High Court Judges Sahan Mapa Bandara Rashmi Singappuli and A.D. Ruwan Pathirana.
Of the 12 sentenced to death, one continues to evade the law.
The verdict was to be announced on January 14.
Sri Lanka suspended implementation of the death penalty in 1976. The EU has repeatedly warned that resumption of judicial executions would result in consequences.
The new entrant to Parliament, and his bodyguard, were lynched by a ‘Aragalaya’ mob, in broad daylight. They were on their way back to Polonnaruwa when the gang intercepted the MP’s car, in the Nittambuwa town, during violence unleashed in the aftermath of SLPP goons’ attack on those camping at the Gotagohome site at Galle Face.
Footage secured from a nearby CCTV camera showed MP Amarakeerthi Athukorala fleeing the scene with his security officer, who was armed with a gun. Dozens of suspects had been subsequently arrested on several occasions on suspicion of involvement in the MP’s murder. The MP and police officer were killed in a garment store where they took refuge.
Earlier, the case caused major controversy over the Gampaha High Court Trial-at-Bar granting bail to all suspects. The Attorney General appealed to the Supreme Court (SC) to cancel the bail granted by the High Court Trial-at-Bar. The AG argued that releasing the accused on bail would impede a fair trial. The AG asked that the SC cancel the bail order and requested that the accused be placed in remand custody till the conclusion of the trial.
One-time Law and Order Minister Rear Admiral (retd) Sarath Weerasekera told The Island that the lives of the parliamentarian and his police bodyguard could have been saved if the military swiftly responded to the then developing situation. Former Colombo District MP said that he told Parliament that the Army, in spite of having troops at Nittambuwa, didn’t intervene. The powers that be never inquired into the lapses on the part of those responsible for maintaining law and order, the ex-Minister said, alleging that successive governments conveniently neglected that responsibility.
by Shamindra Ferdinando
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