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Crisis caused by decades of misuse public resources, corruption, kleptocracy – TISL

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The Transparency International of Sri Lanka has presented a set of 15-point recommendations for anti-corruption law reforms.

The TISL said in a statement: 2022 has so far been a tumultuous year for Sri Lanka. With the country teetering dangerously close to defaulting, economists have noted that the situation will only get worse before it can get better.

TISL says the prevailing crisis has been caused by decades of misuse and mismanagement of public resources, kleptocracy, systemic corruption and an overall lack of transparency and accountability in both governance as well as in the public service sector.

At this important juncture, the decisions taken and the action or inaction of the leaders of the country will determine the uplifting or complete breakdown of the economy, with direct consequences to the lives of citizens. Therefore, ensuring maximum transparency and accountability of decisions at the highest level and taking immediate action to curb ongoing and possible corruption are essential if the country is to effectively implement any economic recovery plan. Hence, it is paramount that loopholes within the Constitution, national policies, laws, structures and systems are addressed in a manner that would minimise opportunities for corruption.

While a robust economic recovery plan is the need of the hour, if the people and systems that are entrusted with implementing such a plan are corrupt or perceived to be corrupt, there will be little to no acceptance from the people, who will have to bear the burden of this recovery plan.

In the light of the above, TISL hereby presents a set of recommendations that lays down the main anti-corruption reforms that are crucial immediately and in the medium / long terms, if Sri Lanka is to rise above the present crisis and bring about a real change:

1. Set the tone from the top – It is paramount that those who take leadership must have a clean track record that demonstrates their integrity and genuine commitment to serve the country, coupled with the required basic knowledge and expertise for their roles. A strong “zero-tolerance policy for corruption” needs to be adopted by the leaders, where they go beyond their word and reflect such principles in their actions.

2. Ensure transparency of all decisions taken with regard to solving the present crisis –Introduce an open digital platform to share all information related to the foreign donations and loans obtained, along with detailed information on how such funds are utilized and on decisions made by the Finance and other relevant Ministries and the Central Bank. It is essential to have frequent and regular press conferences to keep the people informed of the actions being taken on economic recovery and to conduct open consultations with relevant stakeholders prior to making important decisions.

3. Repeal the 20th Amendment –This amendment that removed essential accountability measures in governance should be repealed in order to bring back the checks and balances in governance that were brought in by the 19th Amendment.

4. Introduce provisions to strengthen Parliament’s oversight on Public Finance –It is crucial to tighten the controls on public finance by converting the outdated financial regulations into a comprehensive Finance Law that will cater to the present times and ensure parliamentary oversight as well. In addition, Constitutional recognition and empowerment is required for watch dogs on public finance – the COPE (Committee on Public Enterprise), COPA (Committee on Public Accounts) and CPF (Committee on Public Finance), to enhance their effectiveness.

5. Introduce mandatory accountability measures on public procurement –As public procurement is a process that is heavily targeted for grand corruption, it is essential to convert the existing National Procurement Guidelines to a law, and to establish mandatory procedures to follow in case of unsolicited proposals. Re-establishment and empowerment of the National Procurement Commission to oversee public procurement is also important.

6. Abolish the executive presidency –The Executive Presidency as designed in our Constitution has proven to be an avenue that leads to the concentration of great power on one individual, often leading to the abuse of such entrusted power to the detriment of the country. Therefore, it is important to create a mechanism with a Prime Minister and Cabinet that is accountable to the parliament.

7. Empower the law enforcement authorities and ensure their independence, so that they can take action to end impunity, by fearlessly, proactively and vigorously pursuing the perpetrators of corruption, irrespective of their political power or social status.

8. Begin the process to de-politicize the public service, by introducing required Constitutional amendments that would enhance the independence of the public officials.

9. Act Immediately on the findings of COPE, COPA, COPF, which have continuously unraveled massive abuse of public resources within public institutions.

10. Conduct an immediate audit of all SOEs –A financial audit and an overall review of all State-Owned Enterprises (SOEs) need to be conducted to ascertain losses and misuse of public resources and to take immediate action to stop ongoing corruption. These savings will help the Government to channel more public funds to secure essential goods and services.

11. Recovery of stolen assets –Law enforcement officials need to take steps to immediately commence investigations, asset tracing and the asset recovery process in relation to questionable assets of public representatives and public officials held within and outside of the country.

12. Show us the money – Political parties need to respect the call of the people to demonstrate their commitment to transparency and accountability and make relevant policy decisions to voluntarily disclose their Asset Declarations to the general public, thereby paving way for a social audit of their assets. Steps need to also be taken to Amend the law on Asset Declarations, making public disclosure of asset declarations mandatory and introducing provisions to centralize the record maintenance and for regular review and proactive investigations on discrepancies.

13. Hold the enablers accountable –Public Officials, Big businesses, Banks and Financial Institutions, lawyers, accountants, real estate agents etc. are all part of the kleptocracy circle that pave way for, facilitate, support and benefit from grand corruption. Oversight entities such as the Public Service Commission, Financial Intelligence Unit of the Central Bank, the Chamber of Commerce, The Bar Association, Chartered Institute of Management Accountants etc. and the citizens need to act as watchdogs and demand greater transparency and accountability from these parties as well.

14. Introduce the proposed composite law on Proceeds of Crime –Through this law Sri Lanka could establish an independent Asset Management Authority to manage recovered assets. This law will deal with all matters relating to recovery of stolen assets held overseas.

15. Introduce legislation to regulate election campaign financing, which is a starting point of corruption of public representatives.

Commenting on the current situation, TISL’s Executive Director Nadishani Perera stated “We urge the citizens to continue to actively seek information and knowledge on the types and impact of corruption and to be informed of the essential systemic and cultural changes needed to uplift the country. We stand with the citizens in demanding accountability and corrective action from our public representatives in a peaceful manner. Together we can weather this storm and create the change we thought may not be possible in our lifetime.”



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INS Airavat makes port call in Colombo

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The Indian Naval Ship (INS) Airavat arrived at the Port of Colombo for Operational Turnaround on 01 Jun 26. The visiting ship was welcomed by the Sri Lanka Navy (SLN) in compliance with time-noured naval traditions.

INS Airavat is a Landing Ship Tank, commanded by Commander IP Patil.

During their stay in the island, the ship’s crew is scheduled to take part in a series of professionally enriching events and camaraderie-building programmes organised by the Sri Lanka Navy.

The Indian naval personnel will also tour several historic and prominent tourist attractions across the country before the ship concludes her deployment.

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BASL asks govt. to abandon plan to raise retirement ages of CA and SC judges

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… tells Prez such arbitrary change neither necessary nor desirable

The Bar Association of Sri Lanka (BASL) has urged President Anura Kumara Dissanayake to abandon the controversial plan to increase the retirement age of the judiciary, including the Court of Appeal and the Supreme Court.

In a statement issued by the BASL President Rajeev Amarasuriya and its Secretary Nalin de Silva, the BASL pointed out that the proposed increase of the retirement age of the judiciary would undermine the independence, integrity, dignity, and public confidence in the Judiciary, which is essential for the maintenance of the Rule of Law and democratic governance in Sri Lanka.

The text of the BASL statement: “The Bar Association of Sri Lanka (hereinafter referred to as “BASL”) notes with grave concern reports in the public domain that the Government is considering the introduction of an amendment to the Constitution to increase the age of retirement of Judges of the Court of Appeal and the Supreme Court.

It is the considered view of the BASL that the age of retirement of the judges of the Court of Appeal and the Supreme Court which has stood at 63 years and 65 years respectively from the promulgation of the 1978 Constitution, should not be changed arbitrarily and that such a change is neither necessary nor desirable.

To do so will result in the loss of public confidence in the integrity of the legal system and of the Government’s commitment to preserve and protect the rule of law and the independence of the judiciary. Members of the public are likely to question the motives of the Government in bringing in a Constitutional amendment solely for this purpose.

Your Excellency is no doubt aware that the cadre of the Judges of the Court of Appeal was increased from 12 to 20 Judges (including the President of the Court of Appeal) and that of the Supreme Court from 11 to 17 Judges (including the Chief Justice) by the 20th Amendment to the constitution certified on 29th of October 2020. With such enhancement, workwise, there cannot be a real requirement to extend the retirement ages of these judges.

Your Excellency is aware that altering the retirement age of judges of the apex courts would have to be done through a Constitutional amendment. For many years Sri Lanka’s Constitution has been subject to ad hoc amendments, sometimes in order to cater to the political needs of the government in power and often contrary to the interests of the rule of law, the independence of the judiciary and the judiciary.

Extending the retirement age of the sitting Judges of these Courts at this point of time is likely to be viewed by the public as a blatant attempt to interfere with the judiciary. We believe that to go ahead with such an ad hoc move will also be an affront to the Honourable Judges of those courts.

If the Government goes ahead with such a move it will set a dangerous precedent for future Governments too to introduce ad hoc amendments to the Constitution in respect of the functions of the Judiciary.

The independence of the Judiciary and the public confidence reposed in it, are indispensable pillars of the Rule of Law and the democratic framework of our Republic. In that regard, it is of paramount importance that the Judiciary must not only remain independent in fact, but must also be seen by the public to be wholly independent, impartial, and free from even the slightest perception of influence, favour, accommodation, or impropriety.

The Bar Association of Sri Lanka is therefore constrained, in the discharge of its duty to uphold and safeguard the Rule of Law and the independence of the Judiciary, to respectfully express its serious concern regarding any such proposed amendment, which is neither in the interests of the Judiciary and nor of the people.

In the circumstances, the BASL respectfully urges Your Excellency not to proceed with any proposed constitutional amendment seeking to increase the retirement age of the members of the Judiciary including Judges of the Court of Appeal and the Supreme Court.

We remain confident that Your Excellency will give due consideration to the importance of preserving and protecting the independence, integrity, dignity, and public confidence in the Judiciary, which is essential to the maintenance of the Rule of Law and democratic governance in Sri Lanka.”

Govt. declines to respond

A member of the Cabinet yesterday declined to comment on the BASL’s letter to President Anura Kumara Dissanayake. The Minister said that he wouldn’t comment for the time being.

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New US tariffs proposed on 60 countries, including Sri Lanka

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12.5% additional duties on goods imported from Colombo

The US has proposed additional duties of 10% or 12.5% on imports from 60 economies, including Sri Lanka, over their alleged failure to curb trade in ‌goods made with forced labour.

The proposal made by US Trade Representative’s (USTR) office in terms of Section 301 unfair trade practices investigation to be released, news agencies reported, pointing out that the Trump administration was seeking to rebuild its emergency tariffs, which were struck down by a US Supreme Court decision in February.

The USTR said it determined that it would impose 10% duties related to ⁠the forced labour investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan and Britain.

The trade agency said it would impose additional duties of 12.5% on the remaining 45 countries that were investigated.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” US Trade Representative Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

According to the trade agency, the USTR found that Sri Lanka has failed to impose and effectively enforce a forced labour import prohibition.

The USTR noted that the results of its investigation indicate that the acts, policies and practices of Sri Lanka related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.

Accordingly, it has proposed to impose 12.5% additional duties on goods imported from Sri Lanka.

The USTR said it also was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports ‌to ⁠enter the US at a reduced tariff rate, though the duties and volumes were not disclosed.

The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down US President Donald Trump’s tariffs under the International Emergency Economic Powers Act.

On Monday, the USTR proposed ⁠a 25% duty on many Brazilian goods as a result of a Section 301 investigation into the country’s digital trade practices and preferential tariffs. The trade agency is also expected to soon unveil the findings of another major Section 301 probe into ⁠the buildup of excess industrial capacity in 16 trading partners, including China.

In the forced labour findings, the USTR said it would exempt from the tariffs a number of products, including energy, rare earths and certain ⁠other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.

The USTR said it would accept public comments on the proposed tariffs and other remedies through July 6, with a public hearing scheduled for July 7.

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