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Dr. Godahewa warns govt. over its IMF strategy

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‘Current crisis has given us an opportunity to rectify wrong decisions’

By Shamindra Ferdinando

SLPP lawmaker and one-time prominent Viyathmaga activist Dr. Nalaka Godahewa says the government has not been able to bring talks with the International Monetary Fund (IMF) to a successful conclusion for want of a cohesive action plan to reduce expenditure and increase revenue.The former Minister said so when The Island sought the former mercantile executive’s response to the current status of government negotiations with the IMF.

“The issue at hand is that we haven’t been able to convince the IMF of our plans to address the daunting task. The government cannot sidestep contentious issues as the IMF expects us to come up with a clear action plan to enhance income and reduce expenditure,” the Gampaha District MP said.

Responding to another query, Dr. Godahewa warned the government that finalization of an agreement with the IMF wouldn’t be possible as long as the government delayed presenting a proper plan. The lawmaker questioned the validity of the presentation made by the Finance Ministry to the IMF delegation. Had the government convinced the IMF and as well as other lenders an agreement could have been reached during the recently concluded talks in Colombo.

Participating in a discussion arranged by a group of Kelaniya undergraduates over the weekend, Dr. Godahewa explained the responsibility on the part of the government to reveal how it intended to repay debt.

Instead of repeatedly giving excuses and warnings of further deterioration of the economic status, the government should without further delay address four key issues namely how to increase foreign/domestic income, bring down expenditure in foreign currencies/domestic expenditure.

Dr. Godahewa said that the unprecedented economic crisis had given the incumbent government an opportunity to take appropriate remedial measures to rectify a spate of wrong decisions taken by successive governments over the past several decades. Unfortunately, the government seemed not capable of taking advantage of what the former media minister called a golden opportunity to push for required reforms with the support of all political parties represented in Parliament and other stakeholders, particularly the trade unions.

Dr. Godahewa warned that printing of currency notes continuously to meet budget deficit was nothing but a horrendous blunder.The government should concentrate on expenditure control while being tough on waste, corruption, irregularities and mismanagement, the new entrant to Parliament said. According to Dr. Godahewa, waste, corruption, irregularities and mismanagement perpetrated by successive administrations had caused significant loss of revenue over the years and the incumbent government was no exception, the ex-minister said.

Commenting on public sector enterprises, the Gampaha District lawmaker said that though there were 420 such ventures, the Treasury considered only 52 of them important. Of those categorized as important, the CEB (Rs 21.4bn), CPC (Rs.82.2 bn) and SriLankan Airlines (Rs 170.7 bn) suffered a staggering loss of Rs 270 bn in 2021.

Dr. Godahewa said the country could no longer afford to bear such huge losses. Therefore, restricting was nothing but an urgent necessity, the government MP declared, pointing out that the government lacked the wherewithal to sustain utterly incompetent public sector.

Dr. Godahewa gave a breakdown of the public sector. According to the latest available data, there were 1,402,000 in the state sector comprising ministries and departments 792,000, Provincial Councils and Local Government 390,000 and state enterprises 220,000.

In 2021 alone, their salaries and other payments cost the government Rs 845 bn whereas 672,000 pensioners received payments amounting to Rs 270 bn. Therefore, the total expenditure stood at Rs 1,115 bn (Rs 845 b +Rs 270 bn), Dr. Godahewa said, adding that amounted to staggering 80 percent of the total income.

The MP called for the pruning of the public sector declaring it was a very heavy burden. Public Administration Secretary Priyantha Mayadunne recently said that Sri Lanka could manage with about 500,000 public servants though the current strength of the public sector is 1.5 mn.Dr. Godahewa said that all unnecessary posts and positions should be gradually abolished.



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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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