News
Explanation sought over Monetary Board Secy.’s sudden transfer
Rohini calls for social media campaign against govt. move
By Shamindra Ferdinando
The Samagi Jana Balavegaya (SJB) has sought an explanation from the government over the sudden removal of the Secretary to the Monetary Board of the Central Bank of Sri Lanka, K.M.A.N. Daulagala on16 Sept.
Matale District lawmaker Rohini Kaviratne yesterday (19) questioned the rationale behind Assistant Governor Daulagala’s removal. The former UNP MP emphasised that Daulagala had played a critically important role in the Central Bank’s response in the wake of Treasury bond scams perpetrated in 2015 and 2016. Therefore, her removal was quite suspicious and might facilitate efforts to suppress those scams as well as future frauds as well.
MP Kaviratne represented the UNP during Ranil Wickremesinghe’s tenure as the Prime Minister (2015-2019).
Declaring that Daulagaha had been at the forefront of the efforts to create a clean administration, Kaviratne stressed that she was second only to Rohini Nanayakkara of the Bank of Ceylon (BOC) and earned the respect of all for courageously taking a stand against fraudulent practices.
The SJB spokesperson said that Daulagala, in her capacity as the head of the non-banking sector financial institutions, handled the ETI investigation at the onset (2010-2012) of the probe. In the wake of her recommendations pertaining to the ETI being rejected by the Central Bank, she received a transfer to another section, MP Kaviratne said.
The Monetary Board is responsible for making all policy decisions related to the management, operation and administration of the Central Bank. It comprises Governor Ajith Nivard Cabraal, Finance Secretary S.R. Attygalle, Sanjeeva Jayawardena, PC, Dr (Mrs) Ranee Jaymaha and Samantha Kumarasinghe.
Cabraal, who served as the Governor (2006-2014) recently replaced W.D. Lakshman on President Gotabaya Rajapaksa’s request.
Kaviratne asked who had benefited from the removal of the Secretary to the Monetary Board?
MP Kaviratne said that Daulagala had been involved in the internal process following the first Treasury bond scam and the subsequent developments, including the coordination between the Central Bank and the Attorney General’s Department pertaining to the Treasury bond scams. Urging women’s organsations, civil society and law abiding citizens to take up Daulagala’s removal through social media, lawmaker Kaviratne said that the issue at hand should receive attention of the parliament.
“The Parliament is responsible for public finance. The Parliament cannot turn a blind eye to what is going on in the Central Bank. The national economy is in such a perilous state every effort should be made to investigate past frauds and thwart future adventures,” the MP said.
MP Kaviratne also recalled the role played by Deepa Seneviratne, Superintendent of Public Debt at the time of the first Treasury bond scam in exposing the then Governor’s culpability. “Unfortunately, we seem to be unable to change the direction regardless of exposure of past misdeeds,” she said.
Declaring that she had no intention of protecting any wrongdoer under any circumstances, MP Kaviratne said that the incumbent government should ensure transparency and accountability in public finance.
Examination of COPE (Committee on Public Enterprises), COPA (Committee on Public Accounts) and COPF (Committee on Public Finance) proceedings revealed a frightening picture, lawmaker Kaviratne said. Shocking revelations made by the watchdog committee should be examined against the backdrop of overall deterioration of the national economy over the past several years, the MP said.
She said that it would be a grave mistake on the government’s part to blame the current crisis on the raging Covid-19 epidemic. Acknowledging the difficulties caused by the economic downturn, MP Kaviratne said that the country was paying a huge price for unbridled waste, corruption, irregularities and negligence.
The MP asserted that the citizenry could play a bigger role in a political campaign on social media. The vast majority of those who use social media strengthened democratic opposition, she said. Removal of Daulagala could be a rallying point, she said, urging public onslaught on the SLPP government.
News
President holds virtual discussion with USAID Administrator on future cooperation
President Anura Kumara Dissanayake conducted a virtual discussion on Friday (11) with the Administrator of the United States Agency for International Development (USAID) Ms Samantha Power. During the meeting, the they exchanged views on matters of mutual interest and explored avenues for future cooperation.
Notably, Ms. Samantha Power, stated that USAID is willing to support the government aligning with the manifesto presented to the people.
She also assured President Dissanayake that USAID is prepared to support Sri Lanka in any way needed. This commitment reflects a shared vision for enhancing development and cooperation with the USAID agency
[PMD]
News
UN taking necessary steps to ensure safety of Sri Lankan peacekeepers in Lebanon
By Rathindra Kuruwita
The Sri Lankan Army was in touch with the UN about ensuring the safety of the 125 Sri Lankan peacekeepers stationed in South Lebanon, Director of Media, Major General Nilantha Premaratne told The Island yesterday (11).Premaratne confirmed that two Sri Lankan peacekeepers in Southern Lebanon had sustained minor injuries during an Israeli strike.
He said the peacekeepers had been wounded at Naqoura in Southern Lebanon, and that they were being treated at the hospital at the UN base.
Major General Premaratne said the United Nations Interim Force in Lebanon (UNIFIL) had been headquartered in Naqoura since 1978.
He said they are in touch with the UN and were taking necessary steps to ensure the safety of other Sri Lankan peacekeepers in Lebanon.
“According to our officers, there were Israeli air, tank and artillery attacks. The UN has taken all possible precautions to ensure the safety of its peacekeepers. The UN is taking care of the injured peacekeepers and I don’t think their injuries are bad enough to warrant a repatriation,” he said.
There are 11 officers and 114 other ranks as peacekeepers in Southern Lebanon, he said.
UNIFIL issued the following press release on the incident: “Recent escalation along the Blue Line is causing widespread destruction of towns and villages in south Lebanon, while rockets continue to be launched towards Israel, including civilian areas. In the past days, we have seen incursions from Israel into Lebanon in Naqoura and other areas. Israel Defense Forces (IDF) soldiers have clashed with Hizbullah elements on the ground in Lebanon.
“UNIFIL’s Naqoura headquarters and nearby positions have been repeatedly hit.
“This morning (10 October), two peacekeepers were injured after an IDF Merkava tank fired its weapon toward an observation tower at UNIFIL’s headquarters in Naqoura, directly hitting it and causing them to fall. The injuries are fortunately, this time, not serious, but they remain in hospital.
“IDF soldiers also fired on UN position (UNP) 1-31 in Labbouneh, hitting the entrance to the bunker where peacekeepers were sheltering, and damaging vehicles and a communications system. An IDF drone was observed flying inside the UN position up to the bunker entrance.
“On 9 October, IDF soldiers deliberately fired at and disabled the position’s perimeter-monitoring cameras. They also deliberately fired on UNP 1-32A in Ras Naqoura, where regular Tripartite meetings were held before the conflict began, damaging lighting and a relay station.
“We remind the IDF and all actors of their obligations to ensure the safety and security of UN personnel and property and to respect the inviolability of UN premises at all times. UNIFIL peacekeepers are present in south Lebanon to support a return to stability under Security Council mandate. Any deliberate attack on peacekeepers is a grave violation of international humanitarian law and of Security Council resolution 1701.
We are following up with the IDF on these matters.”
News
CB says country still not out of the woods
The overall stabilisation and gradual improvement of domestic macrofinancial conditions eased the pressure on balance sheets of households and institutions to some extent and thereby lessened the risks faced by the financial sector in the first half of 2024, the Central Bank of Sri Lanka (CBSL) said on Friday (11) in a statement.
Credit growth entered the positive territory, albeit lagging behind the pace of deposit growth, the CBSL said.
It said the decline in market interest rates with the accommodative monetary policy stance along with falling inflation and lower risk premia, resulted in a partial correction of interest rate anomalies, which in turn supported the gradual uptick in credit, he said.
Moreover, the tilt in financial sector exposure towards the public sector also showed signs of correction, indicating an improvement in the allocation of financial resources towards the private sector, the CBSL said.
The Central Bank observed that amidst these developments, the credit cycle progressed within the expansionary phase with the gradual widening of the credit gap. While these developments are encouraging in terms of stabilisation of the financial sector, lingering macrofinancial challenges continued to pose concerns, the CBSL said.
Diminished real income amidst elevated price levels and rigidities in the labour market continued to dampen both the demand for credit and the improvement in credit quality. Moreover, the downward rigidity in market interest rates coupled with declining yet elevated yields of Government securities also hampered the progress of financial intermediation, the CBSL said.
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