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FM says there was no outright sale of Colombo Port East Terminal to Indian company

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“We should have acted more prudently on SLMC issue’

by Saman Indrajith

Responding to criticism on moves to hand over the East Terminal of the Colombo Port to India’s Adani Group, Foreign Relations Minister Dinesh Gunawardena, said that the government has not opted for the outright sale of national assets, but it should be borne in mind that many types of companies have to be considered when it comes to foreign investment.

“There are companies which provide management services and also firms that come as partner companies. We have not gone for outright sale of assets. We try to protect what we have and maintain our existing market, but we have to look 20-30 years ahead to remain globally competitive”, the Minister said in an interview with The Sunday Island.

Deals such as signing of the Hambantota port agreement by the previous regime would not happen under this government, he assured.

Asked about the controversial sacking of the president and four members of the Sri Lanka Medical Council (SLMC), the Minister said: “I think we should have acted more prudently. It is one of those institutions manned by leading members of the medical profession in the country. We, as a party, had disagreements with the SLMC, but we never approved the way the members were removed”.

 

Q: However, the government stands accused in some quarters of doing exactly what it vehemently opposed when in the opposition.

There are ways to look at these issues. Take the withdrawal from the UNHRC resolutions, as an example. If we had given into pressure, it could have resulted in losing almost everything, but we stood up against it. Then it was said that our stand against it would distance Sri Lanka from the international community.

Nothing of the sort happened. Take the Millennium Challenge Corporation (MCC) agreement issue as another example. We opposed it. Now, the US has announced that it would not proceed with it. Even the leader of the opposition now says he’s against it. These things will take their own time but at the end nothing detrimental will happen to our national interests. We are reviewing some projects that are stuck in the state sector. We have also suspended some projects.

There are some limitations to progress. The President has made a decision that we must end the sin of producing thermal power. The losses incurred have been a huge burden on the treasury. We have options now to move from hydro power to other renewable options to generate electricity.

 

Q: What is your assessment of the current political situation?

The people gave an unprecedented mandate to President Gotabaya Rajapaksa and our government because they have trust and confidence in our ability to deliver and our unwavering commitment when it comes to national security.

The composition of the opposition also changed because never in history have the people voted the UNP out of parliament. There were times when they voted out UNP governments but not the entire party. Some of those who had been in the UNP having realized the cardinal mistakes their party made left it to join other parties or to form new parties. The opposition missed the opportunity of working with the government for the sake of the country even after the President expressed his readiness to work with them.

When the new government came to power following the presidential election victory in November 2019, there were a lot of arrears to be settled and loan commitments of the former government to be honored. So we submitted to parliament a supplementary estimate for the purpose of cleaning up the mess they had created. Instead of supporting us, they plotted till the last moment to put the government in difficulty.

The President understood their intentions and decided to call for a general election as soon as he could. In that election, we received an overwhelming mandate from the people. The electoral results of the North also changed this time. The TNA campaigned as the ‘one and only representative of the Tamil people’, but the people of the North this time sent some elected members from new parties.

An entirely new situation has been created in the polity and we have a clear and strong mandate to solve any issue democratically under Prime Minister Mahinda Rajapaksa’s government. We, as a government have identified our responsibilities and obligations, to develop the country in the next five years.

 

Q: The confidence of the people you once commanded seems to be eroding fast in the context of surging Covid-19 pandemic situation.

The masses have reposed tremendous confidence on us. That public confidence got a boost following both local and international accolades we won by successfully managing the pandemic. Coronavirus is a problem affecting the whole world. The world will never return to the pre-Covid-19 economy again. The post-Covid situation will be different from country to country and region to region on the basis of economic survival factors.

We faced the general election under the corona threat. At that time too, the opposition said we had lost the popularity we commanded. But, at the presidential polls, the government won impressively with a two-thirds majority. Once again, there is criticism against the government. While accepting the fact that there is criticism, we must also assess from what quarter such criticisms emerge.

The Gotabaya Rajapaksa government does not have wavering policies. Our policies on foreign relations and national security are not shaky, but are on firm ground. The criticism comes from those who did not have such policies. So it is reasonable for them to make statements that the confidence of the people in us is eroding, but the truth is far from it.

 

Q: The MEP is one of the very old parties in the ruling coalition. What is the role of the MEP in the present context?

The MEP in its long existence as a political force has always fought for upholding national interests. We gave priority to sovereignty and territorial integrity of the country and to protect national interests. There is no change in that standpoint. Some parties now in the opposition did not accept the value of giving priority to national interests in the past but they too have been compelled to change their standpoints. We are a democratic party. We never took to arms. We, as a party, worked for the protection of all, including those who took up arms at one time and later abandoned it. We continue to stand for the promotion of an indigenous and local economy and local entrepreneurs.

Since its inception, our party we fought for the rights of the local entrepreneurs as we believe they should have a share in the national economy and that share should be increased. We also advocate the strengthening the public sector.

Q: It is claimed that cracks are appearing in the SLPP coalition as some of its partners are divided in opinion and unhappy particularly over the SLMC and the PUSCL issues.

We have a common program and a common objective. We have agreed on issues such as safeguarding national security, economic development, working for the betterment of the common man etc. For example, we will not let the national economy end up in the hands of a few. We have seen in the world how the economies of many countries similar to ours have been taken over by a few companies. Ours is a coalition government with many parties represented. They have freedom to make statements and express their opinions on various issues. It is a natural phenomenon the worldover. Many countries in the world today are governed by coalition governments. Member parties have the independence to maintain their diversity. It is democratic to maintain that diversity.

There is no issue big enough to break up this coalition. If you remember there were many disagreements when the 20th amendment was introduced, but everybody united in the end to see it through.

 

Q: There are concerns being raised about the provincial council election.

For any election, the existing electoral system has to be changed first. It has been accepted that the existing electoral system is a waste of public funds. There is consensus among all parties to do away with the existing electoral system. Apart from that, those in the government and the opposition mentioned in their manifestos that a new electoral system will be introduced.

When the time was up to conduct fresh provincial councils elections, the then (UNP) government brought a new bill against it. It also got the JVP and TNA to vote against holding elections. Following our opposition, the then speaker suspended parliament sittings to seek the advice of the then Attorney General, who is the incumbent Chief Justice. The Attorney General was of the view that if the government wanted to push ahead with some sections of the bill, then it would require two-thirds majority in parliament. The government of the day did not have two-thirds majority.

 

They waited till some MPs returned from abroad and rushed them to Parliament. The government also got the TNA and the JVP to vote with them. That was how they got the bill passed. Some of our new MPs do not know how this chaos was created. It was their creation. Now we cannot hold the elections as per the provisions of that bill. Scrapping that law does not activate the previous law. There is a need to bring about new laws which may take months.

 

Q: How do you see the UNHRC resolution against Sri Lanka, which was co-sponsored by then government?

 

While we were in the opposition, we said the resolution was detrimental to our national interests. The Yahapalana government used its vote against the country. It was against the constitution of the country. It also had an idea of contributing to the agenda to convert the country into a federal structure of governance. There are many inquiries from various countries and asking us what we have done after withdrawing from the resolution and results it produced. We have presented facts to support our decision.

 

Lord Naseby, the Honorary President of The All Party Parliamentary British Sri Lanka Group, said in the British House of Lords that the way the UK had acted with regard to Sri Lanka was wrong and if it continues to do so, that is also wrong. We have friendly countries; I think all countries are our friends.

 

Q: On foreign relations, where do we stand now?

 

The President, the Prime Minister and I visited India prior to the worsening of the coronavirus pandemic. The situation with regard to foreign relations is not what many have perceived to be. The Chinese Foreign Minister visited Sri Lanka followed by the Foreign Ministers of Russia. Japan and Pakistan. The US State Secretary also came here. The UK Foreign Minister spoke to us several times. All of them pledged their support to develop the country. The propaganda spread by the opposition is not the real story.

 

Q: There is speculation of a cabinet reshuffle in the offing.

 

I never worked for positions or to protect positions. We never engaged in politics with a power hungry motive. It is those who crave for power that somersault.



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Rupee slide rekindles 2022 crisis fears as inflation risks mount

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ECONOMYNEXT –The recent sharp decline of the Sri Lanka Rupee (LKR) over the past month has reignited anxieties reminiscent of the 2022 financial collapse.

The rupee has fallen more than 5 percent so far this year to a level seen in 2022 after being stable for over three years.

While Central Bank Governor Nandalal Weerasinghe has attributed this volatility to global trends, likely strengthening of the US Dollar and shifting international commodity prices, the domestic implications are profound.

For a nation still in the fragile stages of an IMF-backed recovery, currency depreciation is not merely a technical adjustment; it is a direct threat to the standard of living for every citizen not earning in foreign exchange.

The ripple effects of the depreciation could be detrimental for Sri Lanka’s recovering economy under an IMF deal. Here are a few effects that could adversely impact the island nation:

Sri Lanka remains heavily dependent on imports for essential goods, including fuel, medicine, and food. When the rupee loses value, the cost of bringing these goods into the country rises instantly.

Cost-push inflation is the most direct consequence. As the landing cost of fuel increases, transport and

production costs across all sectors rise, leading to a second wave of price hikes.

In 2022, hyperinflation peaked near 70% following the sudden float of the rupee. While the current depreciation is less drastic, it threatens to reverse the disinflationary trend achieved in early 2025.

Already the inflation has spiked to 5.4 percent in April from 2.2 percent in the previous month, mainly due to sharp fuel price increases and its spillover effects. The recent rupee depreciation has yet to be absorbed into prices.

For the average household, depreciation translates to a hidden tax.

As prices for electricity, gas, and groceries climb, the portion of income available for education, healthcare, and savings shrinks.

The 2022 crisis proved that the middle class is the most vulnerable to sudden depreciation, as their fixed salaries fail to keep pace with the rapidly rising cost of a basic consumption basket.

In 2022, the sudden and uncontrolled floating of the Sri Lanka Rupee acted as a primary catalyst for the nation’s deepest economic collapse, causing the currency to lose over 60% of its value within months.

This sharp depreciation triggered a cost-push inflationary spiral that saw headline inflation peak at an unprecedented 70%, while food inflation soared near 95%.

For the average Sri Lankan, this meant the price of essential imports such as fuel, cooking gas, and medicine, doubled or tripled almost overnight, effectively wiping out the purchasing power of fixed-income earners and pushing millions into food insecurity.

Today, while the current depreciation is more gradual and attributed by the central bank to global trends, rather than domestic depletion, the impact remains a significant threat to household stability.

Unlike the 2022 shock, which was characterized by absolute shortages and queues, this gradual slide serves as a silent tax, steadily eroding the marginal gains made during the recent disinflationary period.

As transport costs and electricity tariffs rise in tandem with the weakening rupee, hardworking families again face the prospect of a nutritional trade-off, where the increasing cost of imported inputs for production and logistics forces a reduction in the quality and quantity of daily consumption.

By Shihar Aneez

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Kapila Chandrasena case: GN phone records under court scrutiny

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Colombo Additional Magistrate Lahiru Silva has directed Keselwatta Police to obtain and examine the telephone data records of a Grama Niladhari who issued certification documents for bail guarantors in a suspected bail-for-money racket linked to proceedings involving former SriLankan Airlines CEO Kapila Chandrasena.

The order was issued after police requested further investigations when four suspects, including Perumal Ganesh, a domestic worker attached to the residence of former cricketer Aravinda de Silva, were produced before court over allegations of presenting fake bail guarantors.

Police told court that investigators have uncovered strong suspicions surrounding the issuance of 17 Grama Niladhari certificates within a five-month period to two individuals—Mohamed Rizwan and Mohamed Ishan—who allegedly acted as guarantors in multiple bail applications. According to police, Rizwan obtained 10 certificates while Ishan obtained seven, all of which were used in court-related proceedings, raising concerns of an organised racket.

The Magistrate ordered that telephone data records of the relevant Grama Niladhari from January to date be analysed as part of the probe.

Police further alleged that Rizwan, Ishan, and Ariya Tissa de Silva, residents of the Sanchi Arachchiwatte area near the Aluthkade Courts complex, provided cash and acted as personal guarantors in the bail application of Chandrasena, who had been remanded in connection with allegations of receiving a USD 2 million bribe in the Airbus deal.

On the 5th, court granted bail to Chandrasena under conditions including two personal sureties of Rs. 10 million each and cash bail of Rs. 500,000. Police allege that the guarantors presented were not known relatives or associates of the accused.

Investigators further informed court that Perumal Ganesh had signed the cash bail guarantee and was identified during an identification parade held on Thursday. The Crime Branch of Keselwatta Police, led by Sub-Inspector K.W.D. Anuruddha, told court that prison officials had identified him.

Police also raised objections to granting bail, noting that investigations into Chandrasena’s death remain ongoing and a final determination has not yet been reached.

However, defence counsel appearing for the suspects rejected the allegations, arguing that their clients were only present to facilitate bail and that no direct charges had been established against them.

After considering submissions, Magistrate Lahiru Silva ordered that the four suspects be further remanded until the 20th and directed police to submit a detailed summary of evidence in the case.

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Inland Revenue (Amendment) Bill takes centre stage in Parliament Tuesday

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Parliament is scheduled to meet from May 19 to 22, Acting Secretary-General of Parliament Hansa Abeyrathne said.The parliamentary agenda for the four sitting days was decided at the Committee on Parliamentary Business meeting held under the chairmanship of Deputy Speaker Rizvie Salih.

Accordingly, on each sitting day, the time from 9.30 am to 10 am has been allocated for Business of Parliament under Standing Order 22(1) to (6), while Questions for Oral Answers will be taken up from 10 am to 11 am. Questions under Standing Order 27(2) are scheduled from 11 am to 11.30 am.

On May 19, Parliament will take up the Second Reading debate on the Inland Revenue (Amendment) Bill from 11.30 am to 5 pm. Time from 5 pm to 5.30 pm has been reserved for the Opposition Motion at the Adjournment Time.

On May 20, an adjournment debate on the Central Bank’s Annual Economic Review for 2025 will be held from 11.30 am to 5.30 pm on a motion moved by the Government.Parliament is also scheduled on May 21 to debate three regulations under the Imports and Exports (Control) Act and nine resolutions under the Appropriation Act.

On May 22, Parliament will present votes of condolence in memory of former MPs Prof Tissa Vitarana, S.C. Muthukumarana, Chandradasa Galappatthy, Nandana Gunathilake, Janak Mahendra Adikari and Kanagasabai Thanmanpillai. Questions at the Adjournment Time will follow from 5 pm to 5.30 pm.

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