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Ex-CBSL Chief backs IMF conditions for resumption of bailout process

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Dr. Indrajith Coomaraswamy (L) / Prof. Ranjith Bandara (R)

… asks for early cross-party consensus

By Shamindra Ferdinando

Former Governor of the Central Bank Dr. Indrajith Coomaraswamy yesterday (11) threw his weight behind the International Monetary Fund’s (IMF) call for far reaching measures meant to stabilize the economy. The Washington headquartered lending agency recently suspended the US 2.9 bn bailout package, pending an agreement on 16 specific recommendations.

Dr. Coomaraswamy said: “There is a strong case for tabling the IMF’s GDA (Governance Diagnostic Assessment) in Parliament with a view to obtaining cross-party consensus on implementing the recommendations contained therein, in accordance with the laws of the country.” The economist said so in response to The Island query whether the Wickremesinghe-Rajapaksa government should heed the IMF advice in this regard.

Dr. Coomaraswamy said: “The relevant Parliamentary Committees can then have oversight of the implementation of the process. Civil society and business associations should also play an active role in advocating implementation and then monitoring its progress.”

Dr. Coomaraswamy served as the Central Bank Governor since July 2016 till Gotabaya Rajapaksa assumed the presidency in November 2019. He was brought in place of Arjuna Mahendran who was denied an extension in the wake of Treasury bond scams perpetrated in February 2015 and March 2019.

Top SJB spokesperson Dr. Harsha de Silva said that the IMF report is nothing but an indictment on Sri Lanka at every level and the most significant roadblock to financial recovery lies in the country’s persistent failure to address its deep-rooted corruption.

Dr. de Silva emphasised that the country wouldn’t get another opportunity to resume the recovery process if the government sought to avoid the IMF’s recommendations by taking cover behind technical issues.

The following are the IMF’s demands (1) Establishment of an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), (2)

Disclosure of asset declarations of senior officials by July 2024, (3) Enactment of proceeds of crime legislation by April 2024, (4) Amendment of the National Audit Act, (5) Finalization of implementation of regulations for beneficial ownership information and creating a public registry by April 2024, (6) Enactment of Public Procurement Law by December 2024, (7) Publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition, (8) Requiring the publication of all public procurement contracts above LKRs 1 billion, (9) Implementing the State-Owned Enterprise Reform

Policy to ensure ethical management, (10) Abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating pro-posals is established, (11) Amending tax legislation to prevent unilateral tax changes without parliamentary approval, (12) Implementing short-term anti-corruption measures within revenue departments to enhance oversight and sanctions, (13) Exploring options for new management arrangements for the Employees Provident Fund to avoid conflicts of interest, (14) Revising legislation, regulations, and processes for stronger oversight in the banking sector, (15) Establishing an online digital land registry and ensuring progress in registering/titling-state land and, (16) Expanding the resources and skills available to the Judicial Service Commission to strengthen justice.

Asked whether he had the blessings of the SJB parliamentary group in this regard, Dr. de Silva said that his declaration of support for the IMF’s proposals in Parliament was done with the backing of his party. A long delay in reaching consensus on this matter could be catastrophic, the Colombo District lawmaker warned no one should seek political mileage out of the continuing political, economic and social crisis.

SLPP National List member Prof. Ranjith Bandara, Chairman of the parliamentary watchdog committee COPE said that actually Sri Lanka should have adopted these measures years ago. The academic said that there couldn’t be any dispute over the need to implement IMF proposals meant to stabilize the situation. It would be a grave mistake on our part to believe the IMF’s proposals were the panacea for all our ills but proper implementation would definitely improve setup thereby providing the powers that be the time and space to undertake long term solutions.

Dr. Bandara found fault with the political party setup that conveniently failed to address the impending crisis years ago. Responding to another query, Dr. Bandara said that Sri Lanka should implement IMF proposals because they should have been carried out anyway.



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NPP bags CMC in secret vote; SJB, allies disappointed with bureaucratic action

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National People’s Power (NPP) councillor Vraie Cally Balthazaar yesterday (16) won a controversial secret vote to secure the mayoral seat at the Colombo Municipal Council (CMC). She received 61 votes while Riza Zarook, fielded by the SJB-led Opposition, obtained 54 votes.

Two votes were rejected. The CMC consists of 117 members and the winner needs to secure at least 59 votes. At the 6 May Local Government elections, the NPP won 48 seats in the CMC while the SJB had to settle for 29.

At the onset of yesterday’s proceedings, both the SJB and UNP demanded that an open vote should take place while the NPP asked for a secret vote. However, after noisy haggling over the issue for 30 to 40 minutes suddenly some Opposition members, and the NPP, declared they had reached consensus for a secret vote though some were heard insisting on an open vote.

The secret vote was conducted by Commissioner of the Department of Local Government of the Western Province, Sarangika Jayasundara. In terms of the Local Government law, the type of voting-‘open vote’ or secret vote, should be decided by a secret vote.

In the run-up to yesterday’s secret vote, both parties repeatedly declared they had the necessary numbers to secure mayoralty.

In a desperate move, the SJB reached an alliance with the UNP (13 seats), SLPP (5 seats) and People’s Alliance (1 seat) to garner support among the Opposition but couldn’t reach the target.

That bid had the support of former Presidents Mahinda Rajapaksa and Ranil Wickremesingh.

In spite of the SJB declaring that the Opposition at the CMC consisted of 69 councillors, the NPP reached consensus with many parties, and independent groups, thereby increasing its tally from 48 to 61 two votes more than the required number.

The following political parties and independent groups won seats at the CMC: NPP (48), SJB (29), UNP (13), SLPP (5), SLMC (4), Independent Group 3 (3), United Peace Alliance (2), Sarvajana Balaya (2) Independent Group 4 (2) and Independent Group 5 (2). National People’s Party, National Freedom Front People’s Alliance, Democratic National Alliance, Independent Group 1 and Independent Group 2 won one seat each.

Having won the secret vote Balthazaar shook hands with Riza Zarook before declaring that all elected members bore responsibility to serve the people. The new Mayor emphasised the responsibility on the part of all 117 to work collectively for the betterment of the people.

The March 12 Movement has claimed that political parties/individuals are being bribed by those seeking to form administration in hung councils. The civil society grouping has said that while conclusive evidence remains limited, widespread public opinion suggests that financial incentives and other benefits may have influenced the support extended to various parties. Such perceptions, whether confirmed or not, do not bode well for the future of local governance, the group has said.

By Shamindra Ferdinando

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Quality of private university degrees under scrutiny: PM

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Dr. Harini

Prime Minister Dr. Harini Amarasuriya, on Saturday, said that a fresh review would be conducted of the quality of degrees awarded by private universities in Sri Lanka.

She said that concerns had arisen over the academic standards of some private universities, whose graduates recruited into the Sri Lanka teaching service. The issue had now been identified, and the Ministry of Education had already initiated a review process in response, the PM said.

The Prime Minister said so during a discussion held on Saturday (14) at the Ministry of Education with representatives of teacher and principal unions.

She said the recruitment of graduates had been approved by the previous government and it had been implemented in accordance with the provisions of the Teachers’ Service Minute.

Dr. Amarasuritya said that although those appointments were legally valid, the Ministry had begun reviewing the quality of education degrees offered by UGC-approved private universities and affiliated higher education institutions.

By Chaminda Silva

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Ex-parte injunction against AAC vacated

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Colombo District Judge Sandun Vithana recently issued an order vacating the ex-parte injunction previously granted against Automobile Association of Ceylon (AAC). The order was issued subsequent to the submissions made by the Counsel representing the Association, Executive Committee Members and Secretary.

This was in respect of Keerthi Gunawardena, former Vice President of the Association moving court against the AAC. Gunawardena obtained an ex-parte injunction that temporarily suspended the Association’s decision to terminate his Membership.

The Association’s Counsel told the court that Gunawardena had conducted himself in a manner undesirable and unbecoming of a Member at the 119th A.G.M. of the Association.

It was also noted that there were 37 formal complaints from Members regarding the incident in question. It was also emphasized that the termination of the Membership of Keerthi Gunawardena was made in strict accordance with the Consolidated Revised Rules in force at the Association. The Defence also argued that Gunawardena had provided misleading information to the Courts when seeking ex-parte injunction.

After carefully considering the submission from all parties the D.C. determined that the plaintiff had both suppressed and misrepresented material facts when he initially approached the Courts for relief.

It concluded that the ex-parte injunction should be vacated, thereby allowing the Association’s original membership termination decision to stand.

For the A.A.C. Kuvera De Zoysa P.C. led the team supported by Attorneys-at-Law Samuditha Kumarasinghe and Sanjana De Zoysa instructed by Attorney-at-Law Sanjay Fonseka.

For Association President Dhammika Attygalle, Ikram Mohamed P.C. appeared with Attorney-at-Law Charitha Wickrema. For the Executive Committee Members Chandaka Jayasundera, P.C. with Attorney-at-Law Imaz Imthiyaz, for the Association Secretary, Devapriya Hettiarachchi, Sanjay Rajaratnam P.C. appeared with Attorney at Law E.S.Jayasinghe.

The Plaintiff Gunawardena was represented by Attorneyat-Law Asthika Devendra instructed by W.M.D.M.B. Wasala.

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