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Lanka on the brink of economic collapse: Prez seeks international help to overcome crisis

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President Gotabaya Rajapaksa, addressing the 27th International conference on ‘Future of Asia’, yesterday, called upon the international community to help Sri Lanka overcome its economic crisis.

Addressing the virtual summit, the President said that it was no secret that the last several months had been extremely difficult for Sri Lanka.

“We are currently undergoing a severe economic crisis, which has profoundly impacted the lives of all Sri Lankans, resulting in social unrest. The virtual shutting down of the tourism industry and the sharp decline in inward remittances from expatriate workers due to COVID19 in the past two years and increasing inflation due to other events combined with Sri Lanka’s high outstanding debt obligations to cause a severe financial crisis,” he said.

President Rajapaksa said that in April, Sri Lanka announced a ‘Debt Standstill’ with the intention of restructuring this external public debt through negotiations with our creditors, whilst simultaneously approaching the International Monetary Fund for a suitable programme.

“In parallel to these efforts, we have appointed a new Prime Minister and a Cabinet of Ministers with representation from multiple political parties, and we are fostering ongoing discussions in Parliament towards forming a national consensus on the way forward,” he said.

Given below are excerpts of his speech: “Sri Lanka is Asia’s oldest democracy. It is crucial that the solutions to our present national crisis are supported through our nation’s democratic framework.

“As we work through such solutions, however, we urgently require the assistance of our friends in the international community to ensure that our immediate needs in terms of the importation of essential medicines, food supplies, and fuel are met.

We are also in urgent need of bridging financing to restore confidence in our external sector and stabilise our economy until the debt restructuring process is completed and an IMF programme commences.

“Sri Lanka is grateful for the support provided by India, our close friend and neighbour, which responded with generosity in our time of need. The support extended by our other neighbours and development partners, as well as regional and global institutions, is also deeply appreciated.

“Japan remains one of Sri Lanka’s key development partners, and we hope that the negotiations now underway regarding bridging funds from Japan will conclude soon, and support Sri Lanka as we try to stabilise our economy and our nation.

“I appeal to the other friends of Sri Lanka present here today, to also explore the possibility of extending support and solidarity to my country at this very difficult time.

“A positive aspect of recent events in Sri Lanka has been the increased engagement of our youth in the nation’s politics.

“We have seen similar activism in other countries too, where the loss of confidence in prevailing systems has led to strong displays of opposition against governments.

“It is important to ensure that these systems undergo the reforms that are essential to their improvement so that future generations will benefit from better opportunities in education and employment, leading to an increase in their productivity.

“The grave difficulties facing Sri Lanka are an early indication of the long tail effects of the COVID19 pandemic, made worse by the ongoing conflict in Europe that may affect other vulnerable nations too.

“Supporting such vulnerable nations through these difficulties is essential for regional as well as global stability.

“It is therefore earnestly hoped that nations able to do so, lend a helping hand to these countries as they seek to overcome the very serious threats they face. An even more widespread problem that the world will face in future concerns food security.

“The shortages of food items and sharp increases in food prices likely to occur in the months ahead will place considerable strain on many countries.

“It is therefore essential that we pay attention to this crucial problem and prioritise agricultural production locally and improve our resilience in the face of this coming issue.

“Increased cooperation amongst nations will also be necessary to ensure that we overcome this issue.

“As we look to the future, it is no secret that even more widespread challenges caused by human induced climate changes lie ahead for the Asian region as well as the world.

“The adverse impacts of such climate change, including loss of biodiversity, water scarcity and pollution, degradation of air quality and ecosystems, will all contribute to significant challenges for many nations including in food security.

“Maritime security in Asia is another thorny issue that require serious policy attention. In addition to traditional security concerns involving the projection of naval power, many non-traditional issues including piracy, human trafficking, drug-smuggling, and illegal, unreported and unregulated fishing continue to pose challenges in this region.

“Sri Lanka has a great interest in the security of the Indian Ocean region, and the protection of the sea-lanes has established a strong relationship between Sri Lanka and dominant regional players including Japan.

“Sri Lanka has responsibility over protecting sea routes, maritime resources and combating maritime crime over a significant region of the Indian Ocean, and we look forward to partnering with the Asian community as we seek to expand our capacities in these areas in future.

“Another enduring regional concern has been civil unrest, conflicts, and communal violence. Sri Lanka too has been marred by sectarian tensions throughout its history. I am of the view that policymakers must come together to devise collaborative regional mechanisms on such issues.

“Exchanging expertise and experience to build capacity in the fields of peacebuilding and reconciliation is essential. So too is the empowerment of the underprivileged, because this is one of the root causes of unrest.

“In this context, I respectfully submit to this forum that the core objectives and functioning of some existing regional bodies are presently affected by conflicts of member countries on matters relating to economic, political, or strategic interests.

“It is my hope that member countries will be able to overcome such impasses and work together in the true spirit of Asia to fulfil the region’s priorities.

“In concluding, I once again thank Nikkei for having organised this conference, and the Government of Japan for hosting this event.

As Sri Lanka overcomes its present difficulties and starts rebuilding for tomorrow, we look forward to constructively participating in future such events too, for the betterment of Asia.”



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INS Airavat makes port call in Colombo

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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.

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

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… 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.

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New US tariffs proposed on 60 countries, including Sri Lanka

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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.

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