News
JVP Leader questions wisdom of promoting privatisation
By Rathindra Kuruwita
Those who claimed that privatisation was the panacea for Sri Lanka’s economic ills had to present information about privatise institutions first, Janatha Vimukthi Peramuna (JVP) leader Anura Kumara Dissanayake said on Wednesday at a conference on privatisation of state assets.
Dissanayake said that the SLPP had campaigned in 2019 and 2020 on a platform of protecting and developing state assets. Therefore, if it embarked on a path of privatizing state assets, it should first go for an election and seek a new mandate.Dissanayake said that Sri Lanka had been privatising state assets since the 1980s and an overwhelming majority of those projects had led to disaster.
“In the 80s and 90s we privatised textile mills and paper manufacturing plants. Of course, there were issues with the quality of their products, but we have to understand that this was the 1980s. Now, these factories are closed, and we import almost all textiles now, burning a lot of foreign exchange. We also have a severe paper shortage and there are complaints that we don’t have paper to print school textbooks, exercise boots, term test papers and print newspapers. We privatised tea plantations, and these plantation owners claim that they can’t pay a daily wage of Rs. 1000. So, before telling us why we should privatise the rest of state-owned enterprises, the proponents of privatisation must show us the data on the impact of previous privatisation endeavours,” he said.
The JVP leader said that those who support privatisation often show Sri Lanka Telecom (SLT) as an example of the benefits of privatization. Dissanayake said that advocates of privatisation claim that before privatisation it took six to seven months to get a connection and that once the SLT was privatized everything changed.
“Is this what actually happened? If you look at the technological evolution of the telecommunications industry, the late 1980s and early 1990s saw boosts in digitization and wireless technologies. The privatization of SLT took place at a time when these technological developments were taking place.
“We benefited from technological developments in other parts of the world. The driver of efficiency in telecommunications in Sri Lanka was technological breakthroughs in the west, not privatization,” he said.
Dissanayake added that during the current economic crisis, those who represent powerful business interests have done a good job of convincing people that the best course of action is to privatize state assets.
“People are suffering and when they see the electricity bill or suffer from fuel hikes, they have been told that this is happening because the Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation (CPC) are owned by the state. They think the prices have gone up because there are too many workers in these institutions,” he said.
However, if the inefficiency of state owned enterprises is the reason for electricity and fuel price hikes, what could explain the dramatic rise in the prices of items like cement or biscuits or milk powder? the JVP leader asked.
“The government plays no role in producing cement. When it comes to milk powder, Highland only has about five percent market share and Highland is still cheaper than other brands. The advocates of privatization are silent on this. Or they tell us that milk powder is bad for the body, or we should not buy cement or biscuits. So, are we going to blame the inefficiency of the private sector for the price increase in biscuits? It is obvious that the current price hikes have little to do with the ownership,” he said.
Dissanayake said that the government is not proposing to only sell loss making institutions. Among institutions that are earmarked for privatization are profit making entities like the SLT, Sri Lanka Insurance Corporation and Sri Lankan ground handling and catering.
“Catering and ground handling departments of SriLankan make a lot of profit. I have looked at the annual reports of SriLankan catering from 2011 to 2021. They have been profitable in all years except 2020, they have been profitable even in the 2021-2022 financial year. It’s obvious why they made losses in 2020. If you look at ground handling, they are doing even better. They made a five billion rupee profit last year. The government is getting ready to sell them and I am sure there are many people ready to buy them. But what about the airline? No one will buy the airline because liabilities are higher than assets and this is a really bad time to run an airline. The government is ready to absorb all the losses of the airline, but even then there are no buyers. We will end up selling the profit-making entities and holding on to loss makers. This will only make things worse,” he said.
The JVP leader said that there are three main drivers that animate those who support privatization. Some of them are adherents of minimum government and believe that the government must not be involved in any businesses. On the other hand, the government is desperate for dollars.
“From 1980 we have failed to earn the dollars we need. In 2022, there is a gap of eight billion dollars to meet imports. If we had not defaulted we would have had to pay six billion dollars for debt servicing. How have we filled this gap? We used to make some money from tourism and foreign remittances. We filled the rest of the gap through borrowings and selling assets. Now we are scraping the bottom of the barrel,” he said.
Dissanayake added that another thing that animates privatization advocates is the opportunity to make money out of these transactions. He said that when large state institutions were privatized, those involved in the process made a lot of money.
“When Hingurana sugar was sold, the institution had 7000 acres of cane, a 300-acre plant nursery, a factory, and 70 million rupees in the bank and sugar in store. It was sold for less than sugar in the store. If we look at the current context, Minister Nimal Siripala is desperate to privatize SriLankan catering and ground handling because one of his deals went wrong a few months ago,” he said.
The JVP does not believe that the state should hold onto everything and try to involve itself in every sector, he said. However, the government has the responsibility to ensure that goods and services are available freely at a decent price, in good quality.
“We can control some aspects of the market through regulation. We can also intervene through the cooperative system. If you look at Amul, India’s dairy giant that makes billions of dollars in profit, is a cooperative. Fonterra, the producer of Anchor brand, is a cooperative. Imagine what we can do if we get small and medium scale rice millers into a cooperative and help them with finance and technology? We could easily break the monopoly of big mill owners and reduce the price of rice. Look at the tile sector, two businessmen run the sector, and now apparently people have to wait for months to get tiles. If we believed the advocates of privatization, this shouldn’t be the result of privatization. A JVP government won’t allow monopolies,” he said.
News
Switzerland to vote on plan to cap population at 10 million
Can a country put a fixed limit on its population? That is the question Switzerland will be answering on Sunday when voters go the polls to decide on a proposal to cap their population at 10 million, a move that has exposed divisions about immigration in the Alpine nation.
The move is backed by the right-wing Swiss People’s Party, which describes it as a “sustainability initiative” aimed at easing pressure on housing, public services and the environment. However some voters see this as the party’s latest anti-immigration move.
Dubbing it a “chaos initiative”, the government, other political parties, business leaders and trade unions argue it will deprive hospitals and hotels of much needed staff, and damage hard-won relations with the European Union, leaving non-EU member Switzerland isolated in a very risky world.
Switzerland’s population has grown rapidly since 2002, when it stood at 7.3 million. Now it is 9.1 million, 27% of whom are Swiss residents who were born abroad.
Switzerland’s system of direct democracy means all major decisions are taken via the ballot box. Campaigners simply have to gather 100,000 signatures to ensure a nationwide vote.
Many voters are concerned by overcrowded trains, expensive apartments and rising health costs.
The latest opinion polls indicate this could be a very close vote.
They suggest voters are inching towards a no vote by a wafer thin margin, with 52% opposed – but polls remain divided, with 45% saying they are in favour of the proposal and a significant number of voters still undecided.
[BBC]
News
Court orders former Atamasthanadhipathi to provide blood sample for DNA testing
Anuradhapura Chief Magistrate, Siyapath Sasindu Wickramaratne, on Friday (12) ordered former Atamasthanadhipathi Pallegama Hemarathana Thera, who stands accused in a case involving the alleged serious sexual abuse of a minor girl, to provide a blood sample for DNA testing.
Accordingly, the court directed the suspect monk to appear before the Government Analyst’s Department on June 16 and provide a blood sample to the Government Analyst.
The order was issued after considering a further report submitted to court by the Nittambuwa Police.
Police informed the court that, pursuant to an earlier court order, certain case material had been forwarded to the Government Analyst on May 4, 2026, for DNA examination.
According to police, the material consisted of clothing allegedly stained with blood, which had been buried and concealed by the girl and later recovered during investigations.
Police further informed the court that the Government Analyst’s report had confirmed the presence of DNA evidence on the clothing.
Investigators told court that it was necessary to obtain a biological sample from the suspect monk in order to compare it with the DNA evidence recovered from the garments.
Police therefore requested an order compelling the suspect to provide a blood sample so that it could be determined whether the DNA evidence found on the girl’s clothing matched that of the suspect.
Having considered the submissions, the Magistrate ordered the suspect monk to provide the blood sample. The court also directed the Government Analyst to submit the report of the subsequent DNA examination.Pallegama Hemarathana Thera was previously remanded in connection with the case and was later released on stringent bail conditions.
News
High fuel prices spark outrage in transport sector, services halved
(Asiatimes) From this week, those using private buses in Sri Lanka may face severe transport disruption, as operators in the sector have decided to cut services by 50%. Among the reasons for the protest are mounting losses, rising fuel costs and the government’s failure to grant fare concessions. At a press conference held on 7 June, Gemunu Wijeratne, president of the Sri Lanka Private Bus Owners’ Association, explained that “the authorities have not responded positively to requests for a review of bus fares and support measures regarding fuel”.
Meanwhile, around 25% of private transport vehicles have already voluntarily ceased operations due to financial difficulties. According to the majority of owners, “the decision comes after ongoing disputes with the authorities regarding fare adjustments and financial relief, which have not been met to date, despite numerous requests made over a long period”. Commuters, especially in Colombo and the surrounding areas, risk facing delays and overcrowding as the reduced fleet operates under the new directive.
According to Wijeratne, “the association will continue to provide a reduced service until the government approves a revised bus fare, in line with the rise in fuel prices”. The alternative for the government, he continues, is to provide “a direct subsidy to operators, as recent fuel price increases have placed considerable pressure on daily transport operators”.
During peak hours such as the morning, school finishing times and the evening rush hour, only essential services will be guaranteed. During these times, instead of four journeys, only three will be made. Overall, operations will be reduced to around 50%. “The government,” the chairman clarifies, “must take responsibility for this situation, as the majority of students and employees use private buses for their daily commutes, particularly to and from Colombo to various parts of the country.”
Operators in the sector point out that although they requested a temporary exemption to guarantee bus services for one month, neither the National Transport Commission nor the Minister of Transport responded positively. The annual fare review is due to be implemented during the first week of July, adding that they have the “legal authority” to “apply the revised fares”. On 5 June, Wijeratne continues, “we held discussions that were unsuccessful. Diesel prices are expected to rise by the end of this month. In view of all this, we are proceeding with the fare review. This year’s fare adjustment will be difficult for the public to bear, as all costs have risen by around 20–25%”.
The president of the Association of Private Bus Owners concludes by noting that “we cannot continue to operate at a loss. For this reason, we have asked the authorities for some concessions on diesel within the regulatory framework, but these measures have not been implemented. We have therefore decided to step up our industrial action. This week we will intensify our action by changing timetables and limiting operations. The decision was taken – he notes – due to the lack of a positive response to the request for a fare review following the recent rise in fuel prices”.
Recently, the Ceylon Petroleum Corporation (CPC) increased fuel prices in accordance with its monthly pricing formula. Among the changes, the price of a litre of petrol was increased by 15 rupees, rendering the current tariff structures unsustainable. To grasp the scale of the emergency and understand the impact on the population, AsiaNews spoke to Akalanka Punchihewa, Senuli Amrasekara and Dunesh Mayadunne, commuters from various parts of the country who travel to the capital every day for work. “We struggle,” they confirm, “to get to work from Kandy, Kurunegala and Galle. The recent decision by private bus operators is a severe blow, as we have to spend several hours in long queues just to get on a bus. The service provided by buses run by the Sri Lanka Transport Board (SLTB) is inferior to that of private buses. And we cannot,” the commuters conclude, “afford to travel to work by car or motorbike, as we are unable to bear the increased cost of fuel.”
by Arundathie Abeysinghe
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