News
Economic crisis: MR, ministers, CBSL Governor, Dr.PBJ ignored IMF warnings
Dr. Jayamaha says Monetary Board acted regardless of strong opposition
By Shamindra Ferdinando
It was disclosed before the Committee on Public Enterprises (COPE) yesterday (25), the then Prime Minister Mahinda Rajapaksa, who served as the Finance Minister, had been briefed, in March-April 2020, on the impending financial crisis of unprecedented magnitude, but he had chosen to ignore the dire warning.
The parliamentary watchdog was told how the International Monetary Fund (IMF) had warned the then Governor of the Central Bank, Prof. W. D. Lakshman, and Treasury Secretary S. R. Attygalle, of Sri Lanka’s inability to procure loans unless the country undertook debt restructuring immediately.
COPE members received a briefing on the circumstances leading to the crisis when senior officials of the Central Bank appeared before the all-party body yesterday. CBSL Governor Dr. Nandalal has stated that the IMF warning hadn’t been heeded at all.
The COPE received confirmation of what has been widely speculated hours after UNP Leader Prime Minister Ranil Wickremesinghe, was sworn in as the new Finance Minister.
Janakantha Silva, Director Legislative Services / Director Communication, Parliament quoted Dr. Weerasinghe as having told COPE that following technical talks held in terms of the Finance Act pertaining to the IMF’s stand, recommendations were made to the then Premier and other senior officials. Dr. Weerasinghe has stated that the relevant decisions should have been made by the Premier, in his capacity as the Finance Minister and the entire Cabinet of Ministers.
The IMF has made its position clear after having asserted Sri Lanka lacked debt sustainability.
Asserting the failure on the part of those who managed the economy for causing a massive crisis, COPE Chairman Prof. Charitha Herath called it a crime. The first time entrant to Parliament recommended the setting up of a Special Parliamentary Select Committee to probe those who neglected their responsibilities thereby caused the current debilitating crisis. Prof. Herath blamed those few who managed the economy during that period.
SLPP National List MP Basil Rajapaksa succeeded Mahinda Rajapaksa in July 2021 as the Finance Minister whereas President Gotabaya Rajapaksa brought in SLPP National List MP Ajith Nivard Cabraal as the Governor of the Central Bank in Sept 2021. Cabraal quit in March to pave the way for Dr. Weerasinghe, the former Bank Deputy Governor to return from retirement in Australia, as its new Governor.
Dr. Harsha de Silva pointed out that the then Finance Minister Mahinda Rajapaksa delegated his responsibilities to the then State Finance Minister Cabraal who refrained from briefing the Parliament as regards the actual situation. Dr. de Silva said that the IMF’s declaration of debt sustainability should be examined against the backdrop of the revenue cut imposed on the recommendation of the then Secretary to the President and one time Central Banker and Treasury Secretary Dr. P.B. Jayasundera that deprived the Treasury of Rs 600 mn in taxes.
Dr. de Silva asked who decided on the tax cut in spite of the IMF specifically advising the government not to do so. The top SJB spokesperson and COPE member asked who decided on such reckless course of action.
COPE member and SLPP lawmaker Rear Admiral (retd) Sarath Weeraselera has said that tax cut was declared to encourage business and trade.
When COPE raised contentious issue of the Central Bank wasting precious funds to prevent depreciation of Sri Lanka Rupee, Dr. Weerasinghe has said this was the responsibility of the Monetary Board comprising five persons. The then Monetary Board member Dr. Ranee Jayamaha has revealed that the then Governor Prof. W.D. Lakshman, Treasury Secretary S.R. Attygalle and nominated member Samantha Kumarasinghe decided on that course of action in spite of her and Sanjiva Jayawardena, PC, opposing them. They had registered their protest in writing.
Dr. Weerasinghe assured the COPE that in spite of the difficulties likely to be experienced within the next three to four months he would try to achieve objectives.
News
CEB trade unions hint at stringent industrial action after talks fail
Trade unions of the Ceylon Electricity Board (CEB), backed by the powerful Ceylon Electricity Board Engineers’ Union, have warned of accelerated trade union action following the collapse of crucial discussions held on Monday (16) with the CEB Chairman, who also serves as Secretary to the Ministry of Power and Energy.
The issue is expected to take centre stage at today’s press conference, with unions signalling that a token strike, possibly a 12-hour countrywide action, could be staged next week unless authorities urgently intervene.
The meeting earlier this week ended without what union representatives described as any “positive or constructive outcome.”
Trade union leaders expressed disappointment that their key concerns had not been substantively addressed during discussions with the Chairman.
At the heart of the dispute is the unions’ demand for a collective agreement in accordance with Section 18(j) of the Sri Lanka Electricity Act No. 36 of 2024. Trade union representatives maintain that the law provides for structured engagement between management and employees and that a formal collective agreement is necessary to ensure transparency and industrial stability within the institution.
The unions also submitted what they termed a reasonable proposal to safeguard the CEB Employees’ Provident Fund (EPF), voicing concerns over the long-term security of workers’ retirement benefits.
However, according to trade union sources, those proposals were not adequately taken up during the discussions.
A senior electrical engineer told The Island that further internal consultations were being held to decide the next course of action. “There is growing frustration among employees. The issues raised are fundamental and relate directly to statutory compliance and the financial security of staff,” he said.
The Island learns that unless there is meaningful engagement from the authorities, the proposed token strike could mark the beginning of more stringent industrial action.
Energy sector observers warn that any escalation of trade union unrest at the CEB could have serious implications for the country’s power sector stability at a critical time.Further developments are expected following today’s media briefing.
By Ifham Nizam
News
PM reveals allowances and perks available to MPs
Prime Minister Dr. Harini Amarasuriya yesterday (19) revealed allowances and benefits provided to Members of Parliament at present.She did so while responding to a question raised by Samagi Jana Balawegaya MP Chaminda Wijesiri.
According to the disclosure:
An MP receives a monthly allowance of Rs. 54,285, with an entertainment allowance of Rs. 1,000 per month.
Driver allowance is Rs. 3,500 per month; however, if the MP is provided with a driver by the Ministry of Public Security and Parliamentary Affairs, no driver allowance is paid.
Telephone allowance is Rs. 50,000, while transport allowance is Rs. 15,000 per month.
Office allowance amounts to Rs. 100,000.
MPs attending parliamentary sessions receive Rs. 2,500 per day, while Rs. 2,500 per day are given for MPs attending committee meetings on non-sitting days.
Meanwhile, Members of Parliament also receive a fuel allowance based on the distance from their elected district to Parliament.
For national list MPs, this is calculated as 419.76 liters of diesel per month, paid at the approved market rate on the first day of each month.Dr. Amarasuriya also emphasised that these allowances are structured to cover official duties and transportation costs.
News
CID expresses regret to Natasha; IGP to issue guidelines on ICCPR arrests
Former OIC of the Cyber Crime Investigation and Intelligence Analysis Unit of the CID, M.M.U. Subhasinghe, yesterday expressed his regret in writing to civil activist and comedian Natasha Edirisooriya at the Supreme Court regarding her arrest under the International Covenant on Civil and Political Rights (ICCPR) Act.
The Attorney General’s Department, appearing on behalf of the respondents, informed the court that the IGP would issue a set of guidelines via a circular to all police officers to prevent unlawful arrests under this Act in the future. It was further noted that the circular would be issued within two weeks, and the petitioner, Natasha Edirisooriya, has examined and agreed to these guidelines.
These submissions were made yesterday before a three-judge bench of the Supreme Court, led by Chief Justice Preethi Padman Surasena, during the hearing of the Fundamental Rights (FR) petition filed by Edirisooriya challenging her unlawful arrest.
Following these developments, the court ordered the respondents to inform the court via a motion within two weeks of issuing the IGP’s circular and ordered the conclusion of the case proceedings.
Natasha Edirisooriya was present in open court yesterday. Addressing her, Chief Justice Surasena stated that the court appreciates the manner in which the legal proceedings were brought to a conclusion.
The letter expressing regret stated: “As the arresting officer, considering the totality of circumstances, I wish to express deep regret to you for the arrest on 27th May 2023 and your incarceration in remand custody till 5th July 2023 consequent thereto. I also extend my deep regret regarding the damage that may have been caused to your reputation and dignity, and mental and emotional trauma caused by the arrest and incarceration.”
The respondents agreed to express this regret and issue the circular based on the specific conditions put forward by Edirisooriya in consultation with her counsel Suren Fernando and the legal team.
By AJA Abeynayake
-
Life style5 days agoMarriot new GM Suranga
-
Business4 days agoMinistry of Brands to launch Sri Lanka’s first off-price retail destination
-
Features5 days agoMonks’ march, in America and Sri Lanka
-
Features5 days agoThe Rise of Takaichi
-
Features5 days agoWetlands of Sri Lanka:
-
News5 days agoThailand to recruit 10,000 Lankans under new labour pact
-
News5 days agoMassive Sangha confab to address alleged injustices against monks
-
Sports1 day agoOld and new at the SSC, just like Pakistan
