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Dr. Coomaraswamy advises next administration to govern by consensus and consistency

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Dr. Indrajit Coomaraswamy

… insists on continuation of IMF programme

Former Central Bank Governor Dr. Indrajit Coomaraswamy has recently said the next new government’s slogan should be ‘consensus and consistency’ in implementing the economic policy reform framework that has been agreed with the IMF to achieve economic growth targets and stability.

Dr. Coomaraswamy said so at a webinar jointly hosted by the Pathfinder Foundation (PF) and the Institute of South Asian Studies (ISAS) at the National University of Singapore that dealt with domestic politics of South Asia, with a special emphasis on Sri Lanka. The webinar, held at the River Point, Headquarters of the PF, brought together leading experts to explore the socio-economic and political challenges faced by Sri Lanka as the nation approaches the Presidential Election on 21st September.

The webinar featured distinguished speakers, each providing unique insights into the multifaceted political and economic issues that will shape Sri Lanka’s future.

Dr. Rajni Gamage, Research Fellow at ISAS, delved into the current political landscape in Sri Lanka and the indicative policy agenda of leading presidential candidates and political parties that would be employed to address the development challenges the country faces. She emphasized the importance of the election, the first since the severe economic crisis, noting that it is being held under intense public scrutiny. Dr. Gamage highlighted that several prominent political leaders were contesting in an environment where the electorate was more vigilant than ever.

Dr. Indrajit Coomaraswamy, former Governor of the Central Bank and Distinguished Fellow (PF), speaking on the current socio-economic dynamics in Sri Lanka, concentrated on three crucial areas, namely, recent macro-economic performance and policies, poverty dynamics in the country and the need for addressing corruption vulnerabilities. He highlighted that in terms of macroeconomic management, there has been an impressive turnaround in the economy. These include economic growth turning into positive after six quarters of consecutive negative contraction, dramatic reduction in both inflation and interest rates, healthy performance in government revenue collection and impressive build-up of external foreign reserve, which was precariously low at US$ 20 million at the time of the crisis has now reached US$ 5.6 billion. He further underscored the importance of continued commitment to implementing the IMF reform package under the Extended Fund Facility (EFF), of which two reviews have been completed. Finally, he emphasized that the slogan for the next new government should be “consensus and consistency’’ in implementing the economic policy reform framework that has been agreed to achieve economic growth targets and stability.

Addressing the socio-political undercurrents, Dr. Paikiasothy Saravanamuttu, Executive Director of the Centre for Policy Alternatives, provided insights into the rise of populism in Sri Lanka. He highlighted the potential backlash political parties may face if they fail to deliver their promises. Dr. Saravanamuttu emphasized the necessity of strong and decisive leadership to navigate the complexities of the current political environment, warning that the stakes are higher than ever in the upcoming elections.

Dr. Chulanee Attanayake, a Non-Resident Fellow at ISAS, offered a comprehensive analysis of regional geopolitics and its potential impact on Sri Lanka’s elections. She examined the influence of global superpowers, focusing on India, China, and the United States on the next government. Dr. Attanayake highlighted the strategic importance of Sri Lanka within the broader South Asian context and discussed how regional dynamics could shape the country’s political and economic future.

The webinar saw active participation from a diverse audience, including academics, policy analysts, and regional experts. The Q&A sessions were particularly engaging, with participants posing several focused questions on the implications of Sri Lanka’s political dynamics, its foreign policy, the role of political parties in shaping the electoral landscape, and the potential outcome of the Presidential Election.

The Presidential Election is poised to be a pivotal moment for Sri Lanka, marking the first major political event after the country’s economic crisis. As highlighted during the webinar, the next government will face the dual challenges of firm commitment to growth-enhancing economic reforms while ensuring a delicate balance to manage geopolitical pressures.

The entire webinar is available on Pathfinder Foundation’s social media platforms, YouTube and Facebook.



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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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Gnansara Thera to be assigned to prison printing section: Officials

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Bodu Bala Sena General Secretary Ven. Galagodaaththe Gnanasara Thera, who was taken into custody to serve the remainder of his prison sentence, was produced before the Colombo High Court yesterday by prison officials in connection with a warrant issued by the court. He appeared before the court in layman’s clothes. Pic by Nishan S. Priyantha.

by Norman Palihawadane

Bodu Bala Sena General Secretary Ven. Galagodaatte Gnanasara Thera, who has been ordered by the court to serve the remainder of his prison sentence, is to be assigned to the prison ‘printing work party’, prison officials said yesterday.

The monk was produced before the Colombo High Court yesterday by prison officials in connection with a warrant issued by the court.

He appeared before the court in civilian attire.

Prison sources said arrangements were being finalised for his detention and that he would subsequently be assigned to the printing work party.

The Thera initially objected when prison officials instructed him to change from his robes into the attire worn by convicted prisoners.

He later agreed to wear the prescribed prison clothes, sources said.

The Supreme Court, in September, annulled the presidential pardon granted to Gnanasara Thera in 2019. He had been serving a six-year prison sentence imposed following his conviction for contempt of court but had served only about nine months when then President Maithripala Sirisena granted him a presidential pardon in May 2019.

Following the Supreme Court ruling, the Thera was required to serve the remainder of his sentence. He was subsequently reported missing, prompting the Court of Appeal to issue an open warrant for his arrest.

The Court of Appeal on Monday ordered the authorities to enforce the remainder of his prison sentence.

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Speaker rejects Ajith Perera’s privilege complaint

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Speaker Dr. Jagath Wickramaratne yesterday ruled that a privilege complaint submitted by SJB Kalutara District MP Ajith P. Perera did not constitute a prima facie breach of parliamentary privilege.

The ruling was made in response to a notice of privilege submitted by Perera on October 02.

Perera alleged that his parliamentary privileges had been breached over the failure to take formal action or reach a final decision on a written request submitted on August 03 by 18 Opposition MPs seeking the appointment of a Special Select Committee to investigate delays in the judicial system and prison overcrowding.

He had also requested that the matter be referred to the Committee on Ethics and Privileges for investigation and recommendations.

In his ruling, Speaker Wickramaratne said the Speaker, as the Presiding Authority and guardian of the powers, rights and privileges of Parliament, could not be subjected to a privilege complaint or disciplinary inquiry by a committee subordinate to the Chair in respect of actions taken in an official capacity.

He said that, under the Standing Orders, the Speaker was required to independently determine whether a prima facie case of breach of privilege existed.

Referring a complaint against the Speaker to a committee functioning under the Speaker’s authority would, therefore, create a procedural contradiction, he said.

Accordingly, the Speaker ruled that Perera’s notice did not constitute a prima facie breach of parliamentary privilege and disallowed the request to refer the matter to the Committee on Ethics and Privileges.

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