Connect with us

News

Crisis did not come about due to COVID-19 pandemic, but because of ill-advised policies of Govt. says Champika 

Published

on

By Saman Indrajith

The SJB, on Thursday, raised questions over the government‘s use of funds for the period between April and August this year without the authorisation of Parliament.

 Participating in the debate on Vote on Account, SJB Colombo District MP Champika Ranawaka said: “The Treasury Secretary issued a circular dated March 10, 2020, that the President had authorised the utilisation of funds under Article 150 (3) of the Constitution, only Parliament has the power to approve a Vote on Account.” But the SJB’s stance was that Article 150 (3) only gave powers to the President to draw funds from the Consolidated Fund for public expenses for three months from that date to the inauguration of a new Parliament.

“It does not grant him powers to draw funds or approve a VoA from the date of dissolving Parliament. The Prime Minister must clarify this in his capacity as the Finance Minister. We hope he will provide Parliament with a detailed account on State revenue during the past eight months of this year, how revenue from various taxes came to the government and the government’s recurrent expenditure before the end of the debate.”

 Ranawaka said 2020 would go down as a significant year in the country’s history as there was no budget.

“A similar situation arose in 2015. This was just after a presidential election and with a general election also coming. However, the then government discussed with all parties concerned and still managed to present a Budget. This government, however, though it came to power in November last year could not present a budget this year. It relied on a Vote on Account passed by the previous government which approved funds up to April 30 this year. We now have another Vote on Account for funds from September 1 to December 31,” he said.

Opening the debate on the Vote on Account for the Opposition, the SJB MP said that the country’s present fiscal crisis had not come about due to the COVID-19 pandemic but because of the ill-advised economic and tax policies of the government.

 He said the government’s tax policies implemented from December 1, 2019 had had a disastrous impact on the state revenue. Due to those policies, annual state revenue, which had been near Rs 2,000 billion during the previous government, had plummeted to about Rs 1,000 billion since last December, he said.

“The state revenue this year will be about Rs 1,100 billion, whereas the interest on loans alone is about Rs 1 trillion (Rs 1000 billion). As such, this is the first time that the country’s revenue is only enough to pay off the interest on the country’s loans,” he said.

Ranawaka pointed out that before the pandemic forced the country into lockdown, the economic growth rate during the first three months of 2020, had been –1.6%. “That was the government’s report card before COVID-19. According to the Asian Development Bank’s forecast, the economy is due to contract by 0.6% this year. The government can’t hide behind COVID-19 and claim all problems are due to it. The fact remains that the economy was in severe distress long before the pandemic came around.”

MP Ranawaka also alleged that the USD 7.2 billion foreign reserves which the previous government’s Central Bank Governor managed to build up were now being used to pay off foreign loans. He also lambasted the protectionist economic policy of the government and said that issuing a blanket ban on imports was only going to further worsen an already difficult situation. “You can’t develop local industries in this manner,” he said.

 

 



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Chemmani mass graves: Govt to seek international forensic help

Published

on

ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.

“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.

Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.

The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.

Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.

Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.

The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.

In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.

412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.

Continue Reading

News

ADB approves $57.4 million package to boost Lanka’s rooftop solar drive

Published

on

The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.

The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.

Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.

The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.

ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.

She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.

The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.

The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.

A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.

Continue Reading

News

Bond scam case against Mahendran, Ravi K fixed for July 22

Published

on

The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.

The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.

Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.

The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.

The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.

Continue Reading

Trending