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Gammanpila says country is in ‘debt trap’

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‘Revival of tourism and foreign remittances not sufficient to overcome daunting challenge’

By Shamindra Ferdinando

Energy Minister Udaya Gammanpila, who is also the leader of the Pivithuru Hela Urumaya has contradicted the much repeated SLPP government claim that the global Covid-19 epidemic caused the current financial crisis.

Attorney-at-law Gammanpila emphasised that the ‘economic time bomb’ had exploded about five years earlier than he anticipated as a result of the Covid-19 eruption. The Minister went onto emphasize that the country was caught in a debt trap.

Minister Gammanpila said so at the inauguration of the National Trade Exhibition at the BMICH on Feb 06 with the participation of Prime Minister Mahinda Rajapaksa and Industries Minister Wimal Weerawansa.

The PHU is on a collision course with the SLPP over the legal challenge mounted in the Supreme Court in late last year against an agreement between Sri Lanka and the US based Company New Fortress Energy.

Declaring that he was not sure whether those responsible had really understood the grave crisis the country was in, lawmaker Gammanpila warned that the economic crisis wouldn’t end even if Sri Lanka fully recovered from the pandemic.

The Colombo District MP said that the deteriorating crisis could be easily explained. The government lacked Rupees and the country experienced severe dearth of foreign currency.

Minister Gammanpila said that successive governments over period of several decades had taken loans without considering the financial sustainability. The minister explained that the national economy had deteriorated to such an extent, Sri Lanka was no longer in a position to ask for loans. Minister Gammanpila said that the government couldn’t take loan in Rupees or USD or settle loans that had been taken.

The minister pointed out that all governments should accept the responsibility for failing to address the widening gap in imports and exports. How could we bridge USD 8 b trade gap by way of foreign loans.

The PHU leader pointed out that in addition to USD 8 bn gap in exports over imports, the country had to pay as much as USD 7 bn in outstanding loans and interests. Therefore, the government had no option but to explore ways and means of raising USD 15 bn a year to cover the trade deficit as well as loans and interest repayments.

MP Gammanpila said that in calculating the annual approximate shortage of USD, he hadn’t taken into consideration the USD requirement for Lankans studying overseas, those seeking medical treatment and foreign visits. Therefore the actual shortfall was even bigger, the minister said, warning that the gap couldn’t be bridged even if the tourism fully recovered and the country managed to regain foreign remittances lost due to workers returning home with the outbreak of the pandemic.

The MP declared that Sri Lanka couldn’t overcome the crisis by obtaining more loans from China and India and by seeking IMF assistance.

The PHU leader declared that first of all the government should accept the country was in deepening crisis not due to Covid-19 but as a result of a death trap of its own making due to living beyond its means. The minister said that instead of deceiving the masses, the people should be taken into confidence and the gravity of the situation explained.

The minister said that leaders had to set an example by making sacrifices thereby helping the public to change their life styles.

Minister Gammanpila questioned the country importing fruits worth USD 68 mn, spices worth USD 127 mn, vegetables and grains USD 384 mn in 2021. When the issue was taken up at the cabinet, Minister Chamal Rajapaksa pointed out how USD 384 mn had been spent on dhal imports. The minister claimed that USD 850,000 had been spent on imported bees honey and USD 450mn?? on imported water bottles.



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Second lot of luxury and decommissioned vehicles owned by the Presidential Secretariat sold

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The second phase of the auction to sell luxury and decommissioned vehicles owned by the Presidential Secretariat was successfully concluded today (15 May), with the auction taking place as scheduled.

A total of 26 vehicles, previously allocated to former Ministers and the former President, to their advisors and staff appointed under Article 41(1) of the Constitution during their tenure, were listed for sale. Out of these, 17 vehicles were successfully sold today.

The auctioned vehicles included:

1 BMW car
2 Ford Everest SUVs
1 Hyundai Terracan SUV
2 Land Rover SUVs
1 Mitsubishi Montero
3 Nissan Patrol vehicles
2 Nissan brand cars
1 Porsche Cayenne
5 SsangYong Rexton SUVs
1 Toyota Land Cruiser Sahara
6 V8 vehicles
1 Mitsubishi Rosa air-conditioned bus

With the aim of reducing government expenditure and promoting fiscal responsibility, a decision was taken to auction the vehicles belonging to the Presidential Secretariat.

There was a high demand for the purchase of these vehicles and over Rs. 200 million in revenue was generated through their sale at the auction held today.

There was significant interest in the auction, with 108 bidders participating.

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President approves establishment of Anti-Corruption Investigation Units in Provincial Councils and LG Institutions

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President Anura Kumara Disanayake has approved the establishment of dedicated anti-corruption investigation units within provincial councils and local government institutions, aiming to combat corruption and administrative inefficiencies. The decision follows a request by provincial governors during a high-level discussion held at the Presidential Secretariat today (15).

During the meeting, President Disanayake emphasised that provincial governors bear the primary responsibility for driving development initiatives and ensuring accountability within their respective provinces. He noted, “Strengthening governance mechanisms is critical to addressing systemic challenges and achieving equitable progress.”

Among the key decisions taken was the creation of anti-corruption investigation units modelled after similar bodies operating at the ministerial level. These units will be tasked with monitoring financial transactions, investigating irregularities and enforcing transparency in development projects. The initiative aligns with the government’s broader agenda to eliminate malpractice in public institutions.

The discussion also highlighted that provincial councils have received three times the financial allocations compared to the previous fiscal year. However, governors raised concerns regarding delays and bureaucratic hurdles in utilising these funds effectively. In response, President Disanayake directed officials to streamline procedures and adopt results-oriented mechanisms to accelerate infrastructure development.

Persistent obstacles in upgrading provincial infrastructure such as road networks, healthcare facilities and utility services, were also discussed. The President pledged to implement practical solutions to address these challenges and urged governors to prioritise projects that deliver tangible benefits to citizens.
The Governors further stressed the need for improved coordination between provincial councils and central ministries to avoid duplication of efforts. Acknowledging these concerns, President Disanayake underlined the importance of collaborative governance to ensure efficient resource allocation.

“While increased funding is a positive step, its prudent management is non-negotiable. Provincial authorities must ensure every rupee is accounted for and spent efficiently,” he asserted.

The meeting was attended by several senior officials, including Dr. Nandika Sanath Kumanayake, Secretary to the President, Kapila Janaka Bandara, Senior Additional Secretary to the President, Provincial Governors: Hanif Yusuf (Western Province), Sarath Bandara Samarasinghe Abayakon (Central Province), Bandula Harischandra (Southern Province), Tissa Kumarasiri Warnasuriya (North Western Province), Wasantha Kumara Wimalasiri (North Central Province), Nagalingam Vedanayagam (Northern Province), Prof. Jayantha Lal Ratnasekera (Eastern Province), Champa Janaki Rajaratne (Sabaragamuwa Province) and Kapila Jayasekara (Uva Province).

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Seven new envoys to Sri Lanka present credentials to the President

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Seven newly appointed foreign ambassadors to Sri Lanka presented their credentials to President Anura Kumara Disanayake today (15) at the Presidential Secretariat.

The new ambassadors represent the State of Israel, the Argentine Republic, the Republic of Zimbabwe, the Republic of the Philippines, the Republic of Tajikistan, the Kingdom of Cambodia, and the Kingdom of Denmark.

Accordingly:

*  Mr. Mariano Agustin Caucino has been appointed as the Ambassador-designate of the Argentine Republic, based in New Delhi.
*  Ms. Stella Nkomo has been appointed as the Ambassador-designate of the Republic of Zimbabwe, based in New Delhi.
*  Mr. Reuven Javier Azar has been appointed as the Ambassador-designate of the State of Israel, based in New Delhi.
* Ms. Nina P. Cringlet has been appointed as the Ambassador-designate of the Republic of the Philippines, based in Dhaka.
*  Mr. Lukmon Bobokalonzoda has been appointed as the Ambassador-designate of the Republic of Tajikistan, based in New Delhi.
* Ms. Rath Many has been appointed as the Ambassador-designate of the Kingdom of Cambodia, based in New Delhi.
*  Mr. Rasmus Kristensen has been appointed as the Ambassador-designate of the Kingdom of Denmark, based in New Delhi.

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, along with the Secretary to the President, Dr. Nandika Sanath Kumanayake, were also present at the occasion.

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