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Chinese Ambassador urges sincere unity and cooperation among regional nations given gravity of pandemic
Given the gravity of the COVID-19 pandemic, countries in the region must cooperate with each other sincerely, Qi Zhenhong, Chinese Ambassador to Sri Lanka said yesterday issuing a statement. With this aim in mind China works with Sri Lanka, Afghanistan, Pakistan, Nepal and Bangladesh to provide pandemic support, he said.
“As of early September, China has provided a total of about 120 million doses of vaccines to South Asian countries through various channels. Among them, Pakistan, Sri Lanka, Bangladesh, and Nepal have received 70 million, 22 million, 19 million, and 7.4 million doses respectively, and Pakistan and Bangladesh also have started local vaccine production with China’s support,” Zhenhong said.
Given below is the statement in full: “Since April this year, South Asia is facing a new round of COVID-19 pandemic, and Sri Lanka has been suffering the most serious impact than ever. In times of adversity, it is even more necessary for people in the same boat to help each other, and more urgently for countries in the region to cooperate sincerely. On April 27th, China established a response mechanism with Sri Lanka, Afghanistan, Pakistan, Nepal and Bangladesh the first time. The foreign ministers of the six countries held a visual conference to discuss joint efforts to fight the pandemic and revive the economy, and achieved important outcomes, including the announcement to establish the China-South Asia Emergency Supplies Reserve and the China-South Asia Poverty Alleviation and Cooperative Development Center. In early July, these two important platforms were officially launched in Chongqing and Chengdu of China, and achieved great outcomes quickly. During the past two months, numerous vaccines and medical supplies have been unhinderedly sent to South Asian countries including, which have strongly supported the fight against pandemic in the region. In this process, we further realize that: Firstly, unity and cooperation is the only correct choice to overcome the pandemic. While facing great pressure on its own pandemic prevention and control, China established and launched the China-South Asia Emergency Supplies Reserve in just 70 days, only was to provide a new and important platform as well as the firmest and strongest support for regional countries to join hands in the fight against the pandemic and emergency cooperation as soon as possible. This fully demonstrates “China’s speed” and “China’s sincerity” in further promoting cooperation with South Asian countries. As President Xi Jinping pointed out, “The Covid-19 pandemic warned the world in a special form that human beings are a community of shared future, honor and disgrace. No country can be immune to major crises, and unity and cooperation are the correct way for the world.”
“Secondly, vaccine cooperation is a key weapon to defeat COVID-19. The six foreign ministers have repeatedly emphasized the key role of vaccines in the fight against the pandemic. President Gotabaya Rajapaksa also stressed that only vaccines could stop the pandemic. As of early September, China has provided a total of about 120 million doses of vaccines to South Asian countries through various channels. Among them, Pakistan, Sri Lanka, Bangladesh, and Nepal have received 70 million, 22 million, 19 million, and 7.4 million doses respectively, and Pakistan and Bangladesh also have started local vaccine production with China’s support. On September 9th, President Xi Jinping announced at the BRICS Summit that on top of the 100 million U.S. dollars donation to COVAX, China will donate an additional 100 million doses of vaccines to fellow developing countries within this year. As a friendly neighbor of China, South Asia will undoubtedly benefit a lot.
“Thirdly, focusing on livelihood is a matter of urgent priority. In order to address the prominent challenges facing South Asian countries in the field of poverty reduction and development in the COVID-19 pandemic, China initiated the China-South Asian Countries Poverty Alleviation and Cooperative Development Center. The successful launching and operation of the center will play an effective role in gathering strength, pooling resources and promoting experience exchanges, thereby supporting the South Asian countries to improve economy and livelihood. It will promote poverty reduction and eradication, as well as enhance the well-being of the people of the region. The Foreign Ministers have also agreed to deepen Belt and Road cooperation, secure the industrial and supply chains, and strengthen collaboration in poverty reduction, food security and other fields. We will continue to actively put the above-mentioned outcomes into effect, while further enhancing the quality of the cooperation mechanism among us, to expand the areas of cooperation, achieve more visible results and better benefit our people.
“This Six Countries FMs’ Meeting Mechanism, as a new initiative, is open, inclusive, and mutually beneficial in its nature. Therefore, it always welcomes new members from the region. China hopes and believes that countries of the region will work together to develop, safeguard and fully utilize this mechanism. China firmly stands with the people of South Asia and always provides as much assistance as possible within its capacity. In July, President Xi Jinping in his speech at the APEC Informal Economic Leaders’ Retreat promised that China will provide another $3 billion international aid over the next three years to support the COVID-19 response and economic and social recovery in other developing countries. As long as the COVID-19 pandemic is haunting the world, China will not halt its efforts and assistance for global cooperation in defeating the pandemic.
“We are delighted to see that under the strong leadership of President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, and with the joint efforts of its people of all ethnic groups, Sri Lanka has made world-renowned achievements in vaccination. We are also expecting the pandemic situation to improve in following days. China-Sri Lanka cooperation, being important part of China-South Asian cooperation, will certainly benefit from the regional cooperation. The Port City Colombo and the Hambantota Port and Industrial Park have attracted high interests from other South Asian countries including a Maldivian company to build yachts in Hambantota Port. More and more regional cooperative projects will be established in the future. China looks forward to joining hands with Sri Lanka and other regional countries in confronting and overcoming challenges, defeating COVID-19 pandemic and achieving greater and better development in this region.”
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Unions resist tripartite EPF management plan
… warn of dire consequences
A group of trade unions and civil society groups has requested President Anura Kumara Dissanayake to abandon his government’s controversial plan for the proposed tripartite management of the EPF.
The group has told the President: “We strongly object to the government’s plan to transfer the EPF to a tripartite board—jointly promoted by the Employers’ Federation of Ceylon (EFC), International Monetary Fund (IMF) and the International Labour Organisation (ILO)—and to increase the investments of those funds within private equity and debt markets.
“While the EFC and the government jointly project this plan as a ‘modern governance framework’, it poses a serious threat to the EPF’s financial stability, fiduciary conduct, and returns to workers’ life savings, with severe consequences for broader macroeconomic stability. Rather than replacing the corruption existing in the public sector, this tripartite framework paves the way for a corporate takeover of the EPF. Through this, the fund is exposed to unlawful business practices such as insider trading using internal information of EPF investments, conflicts of interest and corporate bailouts of unstable private companies.
“Sri Lanka’s corporate sector has a tremendously negative track record, which you alluded to during your victorious election campaign in 2024. This was recently unravelled by the multi-billion-dollar illicit capital flight through trade misinvoicing, which your administration is now actively working to curb in the imports sector.
“The recent banking sector fraud exceeds Rs. 13 billion; widespread corporate tax evasion destabilised the fiscal position (Sri Lanka Auditor General’s Department Annual Reports) and consequently inflated the tax burden on the general public. The EFC has found it convenient to remain silent about these crimes, possibly assuming that their silence would preserve their social standing. Considering this inherent corruption within Sri Lanka’s corporate sector and its disregard to the living standards of the general public, there is no realistic basis to integrate corporate interests to actively manage the EPF. The corporate sector of Sri Lanka has not developed sufficiently on technical and ethical grounds to safely entrust the largest retirement savings pool in the country. The EPF is a captive fund that has no mechanism for the owners to divest if the management is corrupt. This further increases the possibility of corporate fraud when the management of the fund is jointly held with the corporate sector.
“Furthermore, during the recent public discussion with trade unions, Deputy Minister of Finance Dr. Anila Jayantha pointed out that the domestic debt restructuring (DDR) would inflict a loss of Rs. 600 billion to the EPF. Our independent calculations—formally submitted as an affidavit to the Supreme Court approved by the Federation of University Teachers’ Associations in 2024—reveal that nominal loss alone is Rs. 634.4 billion. When factoring in foreclosed reinvestment returns, the true loss skyrockets to Rs. 1,711 billion, wiping out 48% of the fund’s projected gross income for the 2023 – 2028 period. Under the pretext of safeguarding the banking system, this colossal robbery preserved high yields on government bonds held by commercial banks and high-net-worth individuals, subsequently reaping them astronomical profits. Now, the exact same plunder is rearing its head again disguised as a tripartite committee.”
“The main arguments supporting our resistance and viable alternatives for optimising EPF management directly under the Central Bank of Sri Lanka (CBSL), are outlined below.
“Objections to the government’s tripartite proposal:
1. The “International best practice and conflict of interest fallacies”
The government holds that tripartite management of pension funds is the “international best practice” and that there is a “conflict of interest” in CBSL managing the EPF. They are key pillars justifying government’s tripartite proposal.
These two positions are shockingly misleading given that four of the five largest pension funds in the world, in Norway, Japan, the U.S., and Singapore, are managed directly by state bodies or central banks. Therefore, ‘international best practice’ in pension fund management is the exact opposite of what the government and the IMF are proposing. We hence reject these baseless positions.
2. Corporate captivity and bailouts
It is clear that the EFC is desperately pushing for this proposal at a time of global uncertainty, to cushion the effects of the crisis and maximise gains. Under corporate influence within the proposed tripartite board, the private conglomerates can use the multi-trillion-rupee EPF to continue their unstable commercial operations without having to risk their own capital or savings to do so. This will severely erode the financial stability of the EPF and its returns.
3. Risk of front running
“Because the EPF is a colossal fund, its investment decisions can alter asset prices. This creates immense monetary value for the information generated by its investment decisions. Corporate representatives on the proposed tripartite board will be perfectly positioned to use this information to trade ahead of the EPF (front-running), buying assets cheaply and dumping them onto the EPF at inflated prices for guaranteed corporate gain, resulting in a reduction of returns to the EPF.
4. Unavoidable loopholes
“Presence of a separate group of investment analysts, trade union representatives and government officials within the proposed tripartite structure cannot prevent pre-market corporate access to EPF’s investment decisions. Investment proposals made by the analysts has to be first approved by the proposed tripartite committee, making it impossible to prevent corporate access to insider information on EPF investments.”
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