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CORRECT COLLECTIVE ACTION ESSENTIAL TO SAVE SRI LANKA FROM SEVERE CRISIS
by PROF. TISSA VITARANA
Sri Lanka is facing multiple crises, worst of all a severe economic crisis that can end in bankruptcy. But some Government policy makers are acting as if this is just a hiccup that will pass away and needs no properly targeted drastic action.
For some strange reason the people have not been informed of the gravity of the situation and that a period of austerity with belt- tightening by the whole nation is necessary. Nearly all countries, rich and poor, big and small are faced with this situation. So it is nothing to be ashamed off.
In fact the obtaining of the country’s requirement of vaccines, amid severe competition, was an achievement (though I would have been happier if the mRNA vaccines like Pfizer were left out).The Government policy seems to rely almost entirely on the vaccination programme.
It would appear that the expectation is that if nearly everybody is vaccinated the spread of the disease will also end. But this is not the case as those vaccinated can acquire the infection and also transmitted to others. The vaccination only prevents severe disease and death of the vaccinated individual.
Therefore it is essential that the government strictly enforces the observance of the epidemiological health rules (constant wearing of a good mask, the observance of social distancing, the constant washing of hands well with soap and water if anyone touches an object handled by any other person, and the avoidance of crowds by all. This may need the setting up of Covid-19 committees at village level which can acquire the necessary know how and see that the rules are enforced.
A clear plan of action to address this entire situation and which rallies the whole nation is required. The enforcement of the health rules should be given equal or higher priority in the total program.
Since 1977, after nearly 44 years of a neoliberal economy (where the regulation is by market forces which increase imports and the profit of the super-rich, without providing the basic needs of the people) is the main cause of the crisis.
The cost of imports far outstrips the income from exports, leading to a huge foreign trade imbalance. The drop of dollar income from tourism and expatriate labour due to the Covid-19 pandemic has aggravated the situation. The country has been brought into a situation where our foreign reserves are down to less than one billion US dollars (USD), from an earlier average of USD 7 to 8 billion.
This is not enough to buy our needs from abroad for even one month, nor to repay the accumulated loans acquired mainly after 1977 which amounts to about USD 6 billion per year. The internationally recognized Fitch rating has brought their assessment of our economy down to CC (in a scale that extends from AAA to single C).
Thus as we are rated as being close to bankruptcy and no foreign investors can be expected to come here due to the high risk. Therefore we are forced to borrow short term loans at high interest, specially swaps. Sri Lanka is caught in a foreign “debt trap” and is fast running out of USD to buy even essentials like food and medicines from abroad. The lack of dollars will lead to a severe shortage of essentials. The result will be racketeering and high prices – a black market. This will send prices up further.
Within the country the economic situation is extremely bad and specially people in the villages and the urban slums are suffering terribly. Within Sri Lanka 60% of our population is living in poverty. Hunger is widespread and many live on one meal a day. The malnutrition level has gone up to 18.3% (which means that out of five children who are five years of age one is suffering from malnutrition). Not only will the body and mental development of these malnourished children be badly affected, it can have some adverse impact on the entire future generation.
A significant section of the future generation will be mentally deficient, in addition to being short and thin and may behave abnormally. There may be an increase of crime and misbehavior. This trend has already appeared among a significant section of the present younger generation (who have lost their jobs, and become drug addicts as well as part of the underworld).
It is sad to see intelligent and skilled youth queuing up to obtain passports and visas to go abroad, at a time when we need their skills and energy to develop our country. We can ill-afford this brain drain. My fear is that if the economic and social situation deteriorates further, employed professionals too may join this queue.
How do we prevent or minimize these unfortunate trends? The question asked is how long will this Covid-19 pandemic last. On the basis of experience with past pandemics and epidemics, which have generally existed in epidemic form for two or three years, they have then become milder routine infections like the common cold, or influenza. The appearance and increase of herd immunity contributes to the above change. It is my hope that with Covid -19 too this will be the case.
With regard to the repayment of our loans as a country which has been badly hit by the Covid-19 pandemic as well as the global economic crisis we are entitled to re-negotiate and restructure the repayment of our sovereign debt. Accordingly we should ask for a period (say about five years) where we do not re pay our debt to the creditors. This is to enable us to bring about the requisite changes of the policies that will result in sustainable development. During this period we can ensure that our people obtain their essential needs and their suffering be minimized.
The welfare state (free health, free education, allowances to the needy etc.) must not only be properly implemented during this period but also be sustained in the future. Our dependence on loans can be minimized by ensuring that the haves also take a significant part of the burden. The tax rate in Sri Lanka, both personal (14%) and corporate (18%) is one of the lowest in the world. This must be increased to well above the upper limit of tax charged in countries of Europe (35-40%).
News
Construction of Jet A-1 Aviation fuel pipeline and new oil tank complex at Muthurajawela begins under President’s patronage
President Anura Kumara Dissanayake said that the Government’s objective is to maintain a strong state presence in the energy market while providing an efficient service to the people, adding that significant progress has been achieved towards this objective over the past two years and that a strong energy market that does not place a burden on the people is now being built in Sri Lanka.
The President made these remarks on Friday (02) morning while attending the commencement of construction of the Jet A-1 pipeline system of the Ceylon Petroleum Corporation (CPC) and two new oil storage tank systems belonging to the CPC and the Ceylon Petroleum Storage Terminal Limited (CPSTL).
The projects are being implemented in line with the Government’s national objective of developing infrastructure in the energy sector, with the aim of ensuring the security of aviation fuel supplies, reducing supply costs and providing the capacity required to meet future demand for aviation fuel.
A dedicated pipeline and associated tank complex are being constructed to connect Muthurajawela with the Bandaranaike International Airport in Katunayake, with the aim of meeting the future demand of the country’s aviation sector, ensuring the security of aviation fuel supplies and reducing transportation costs.
Construction has commenced on five new Jet A-1 fuel storage tanks with a total capacity of 92,000 cubic metres. These comprise two large Jet A-1 tanks, each with a capacity of 30,000 cubic metres; two medium-sized tanks, each with a capacity of 15,000 cubic metres; and an additional tank with a capacity of 2,000 cubic metres. The fuel supply pipeline system will be connected to the airport through a 21-kilometre-long underground pipeline with a diameter of 10 inches from the Muthurajawela tank complex. The project is scheduled for completion within 30 months.
Meanwhile, as part of ongoing efforts to strengthen and expand storage and infrastructure facilities in the petroleum industry, the Ceylon Petroleum Storage Terminal Limited (CPSTL) commenced construction today of three new storage tanks at the Muthurajawela Terminal.
Upon completion, the three-tank system, comprising two tanks with a capacity of 15,000 cubic metres each and one tank with a capacity of 10,000 cubic metres, will provide an additional total storage capacity of 40,000 cubic metres.
This will further enhance the petroleum storage capacity of the terminal and support the continued development of the country’s petroleum infrastructure. The project has a contractual period of 18 months and is scheduled for completion in April 2028.
The tanks are being constructed in compliance with relevant international standards and recognised industry best practices, ensuring enhanced safety, reliability and operational efficiency. The additional storage capacity will strengthen the country’s fuel reserves, improve operational flexibility and support the reliable and uninterrupted distribution of fuel products to meet the country’s growing energy requirements.
Minister of Ports and Civil Aviation and Minister of Energy Anura Karunathilaka said,
“We are now in an era of energy transition. The world is rapidly moving towards the use of clean energy. The use of electric vehicles is very important in this regard, and our country is also now moving in that direction.
The use of solar energy is also important. We expect to add 1,200 megawatts of solar power capacity to the national grid by 2029.
As a country, we must focus not only on controlling fuel prices but also on controlling fuel consumption. The public also has a major responsibility in this regard.
It is particularly important to change our patterns of energy consumption. Greater energy security can be achieved by avoiding periods of high energy demand, shifting towards electricity use and using fuel-efficient vehicles, particularly electric vehicles.”
Chairman of the Ceylon Petroleum Corporation D. J. Rajakaruna said,
“We faced a major challenge due to the war in the Middle East. However, with the intervention of the President, relief was provided to the people and the situation was managed very effectively.
As a result, while diesel prices in the global market increased by 91%, the increase in Sri Lanka was only around 39.5%. While petrol prices in the global market increased by 80%, the increase in Sri Lanka was only around 41%.
Despite providing fuel at lower prices in this manner, the Corporation has recorded a profit of Rs. 28 billion this year. We also recorded a profit of Rs. 36 billion last year.
This may raise the question of why fuel prices are not being reduced when there are such profits.
However, we have used those profits to commence a number of infrastructure development projects at the institution.
These include adding the capacity of 11 tanks, including the construction of six tanks that had previously been abandoned, to increase fuel storage capacity; modernising our oil-filling section, which is more than 90 years old, and establishing a gantry system similar to that at Muthurajawela; laying two new pipelines for unloading fuel from the port to Kolonnawa; constructing a new pipeline to transport Jet A-1 fuel to Katunayake; and upgrading the pipeline system and laying new pipelines, among many other projects.
We are implementing these projects using those profits. Therefore, we have returned the benefits to the people through these investments.”
The Minister of Science and Technology, Professor Chrishantha Abeysena; Deputy Minister of Energy, Arkam Ilyas; Member of Parliament Kumara Jayakody; Secretary to the Ministry of Energy and Senior Additional Secretary to the President, Russell Aponso; foreign ambassadors; government officials including officials of the Ministry of Energy and the Ceylon Petroleum Corporation; and representatives of Sinopec were among those present at the occasion.
President’s Media Division (PMD)
News
Lanka enters new phase of prosecutions as hurdles clear
MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.
Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.
An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.
President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.
In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.
Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne
— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.
SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.
Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.
Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.
Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.
She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.
At the time, the family spokesman said she was due to return in three days.
“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.
“We have cleared the legal hurdles to press ahead with more arrests,” he said.
“We are working on a few administrative issues which will be resolved very soon.”
The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.
News
Police warn: Court evaders face property seizure
Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.
Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.
The proclamation must allow the person at least 30 days to appear before court, Police said.
If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.
This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.
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