Connect with us

News

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

Published

on

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.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.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

News

INS Airavat makes port call in Colombo

Published

on

By

The Indian Naval Ship (INS) Airavat arrived at the Port of Colombo for Operational Turnaround on 01 Jun 26. The visiting ship was welcomed by the Sri Lanka Navy (SLN) in compliance with time-noured naval traditions.

INS Airavat is a Landing Ship Tank, commanded by Commander IP Patil.

During their stay in the island, the ship’s crew is scheduled to take part in a series of professionally enriching events and camaraderie-building programmes organised by the Sri Lanka Navy.

The Indian naval personnel will also tour several historic and prominent tourist attractions across the country before the ship concludes her deployment.

Continue Reading

News

BASL asks govt. to abandon plan to raise retirement ages of CA and SC judges

Published

on

… tells Prez such arbitrary change neither necessary nor desirable

The Bar Association of Sri Lanka (BASL) has urged President Anura Kumara Dissanayake to abandon the controversial plan to increase the retirement age of the judiciary, including the Court of Appeal and the Supreme Court.

In a statement issued by the BASL President Rajeev Amarasuriya and its Secretary Nalin de Silva, the BASL pointed out that the proposed increase of the retirement age of the judiciary would undermine the independence, integrity, dignity, and public confidence in the Judiciary, which is essential for the maintenance of the Rule of Law and democratic governance in Sri Lanka.

The text of the BASL statement: “The Bar Association of Sri Lanka (hereinafter referred to as “BASL”) notes with grave concern reports in the public domain that the Government is considering the introduction of an amendment to the Constitution to increase the age of retirement of Judges of the Court of Appeal and the Supreme Court.

It is the considered view of the BASL that the age of retirement of the judges of the Court of Appeal and the Supreme Court which has stood at 63 years and 65 years respectively from the promulgation of the 1978 Constitution, should not be changed arbitrarily and that such a change is neither necessary nor desirable.

To do so will result in the loss of public confidence in the integrity of the legal system and of the Government’s commitment to preserve and protect the rule of law and the independence of the judiciary. Members of the public are likely to question the motives of the Government in bringing in a Constitutional amendment solely for this purpose.

Your Excellency is no doubt aware that the cadre of the Judges of the Court of Appeal was increased from 12 to 20 Judges (including the President of the Court of Appeal) and that of the Supreme Court from 11 to 17 Judges (including the Chief Justice) by the 20th Amendment to the constitution certified on 29th of October 2020. With such enhancement, workwise, there cannot be a real requirement to extend the retirement ages of these judges.

Your Excellency is aware that altering the retirement age of judges of the apex courts would have to be done through a Constitutional amendment. For many years Sri Lanka’s Constitution has been subject to ad hoc amendments, sometimes in order to cater to the political needs of the government in power and often contrary to the interests of the rule of law, the independence of the judiciary and the judiciary.

Extending the retirement age of the sitting Judges of these Courts at this point of time is likely to be viewed by the public as a blatant attempt to interfere with the judiciary. We believe that to go ahead with such an ad hoc move will also be an affront to the Honourable Judges of those courts.

If the Government goes ahead with such a move it will set a dangerous precedent for future Governments too to introduce ad hoc amendments to the Constitution in respect of the functions of the Judiciary.

The independence of the Judiciary and the public confidence reposed in it, are indispensable pillars of the Rule of Law and the democratic framework of our Republic. In that regard, it is of paramount importance that the Judiciary must not only remain independent in fact, but must also be seen by the public to be wholly independent, impartial, and free from even the slightest perception of influence, favour, accommodation, or impropriety.

The Bar Association of Sri Lanka is therefore constrained, in the discharge of its duty to uphold and safeguard the Rule of Law and the independence of the Judiciary, to respectfully express its serious concern regarding any such proposed amendment, which is neither in the interests of the Judiciary and nor of the people.

In the circumstances, the BASL respectfully urges Your Excellency not to proceed with any proposed constitutional amendment seeking to increase the retirement age of the members of the Judiciary including Judges of the Court of Appeal and the Supreme Court.

We remain confident that Your Excellency will give due consideration to the importance of preserving and protecting the independence, integrity, dignity, and public confidence in the Judiciary, which is essential to the maintenance of the Rule of Law and democratic governance in Sri Lanka.”

Govt. declines to respond

A member of the Cabinet yesterday declined to comment on the BASL’s letter to President Anura Kumara Dissanayake. The Minister said that he wouldn’t comment for the time being.

Continue Reading

News

New US tariffs proposed on 60 countries, including Sri Lanka

Published

on

12.5% additional duties on goods imported from Colombo

The US has proposed additional duties of 10% or 12.5% on imports from 60 economies, including Sri Lanka, over their alleged failure to curb trade in ‌goods made with forced labour.

The proposal made by US Trade Representative’s (USTR) office in terms of Section 301 unfair trade practices investigation to be released, news agencies reported, pointing out that the Trump administration was seeking to rebuild its emergency tariffs, which were struck down by a US Supreme Court decision in February.

The USTR said it determined that it would impose 10% duties related to ⁠the forced labour investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan and Britain.

The trade agency said it would impose additional duties of 12.5% on the remaining 45 countries that were investigated.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” US Trade Representative Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

According to the trade agency, the USTR found that Sri Lanka has failed to impose and effectively enforce a forced labour import prohibition.

The USTR noted that the results of its investigation indicate that the acts, policies and practices of Sri Lanka related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.

Accordingly, it has proposed to impose 12.5% additional duties on goods imported from Sri Lanka.

The USTR said it also was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports ‌to ⁠enter the US at a reduced tariff rate, though the duties and volumes were not disclosed.

The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down US President Donald Trump’s tariffs under the International Emergency Economic Powers Act.

On Monday, the USTR proposed ⁠a 25% duty on many Brazilian goods as a result of a Section 301 investigation into the country’s digital trade practices and preferential tariffs. The trade agency is also expected to soon unveil the findings of another major Section 301 probe into ⁠the buildup of excess industrial capacity in 16 trading partners, including China.

In the forced labour findings, the USTR said it would exempt from the tariffs a number of products, including energy, rare earths and certain ⁠other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.

The USTR said it would accept public comments on the proposed tariffs and other remedies through July 6, with a public hearing scheduled for July 7.

Continue Reading

Trending