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LG polls controversy: State Minister responds to rebel SLPP criticism, urges reappraisal of strategy

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Shehan Semasinghe

By Shamindra Ferdinando

State Finance Minister Shehan Semasinghe said yesterday that the national economy was in such a parlous state that an election was the last thing the public needed.

The Anuradhapura District lawmaker said so in response to him being criticised by rebel SLPP leader, Prof. G.L. Peiris, at their regular weekly briefing ,at Nawala, over the possible postponement of Local Government polls, scheduled for early next year. As constitutionally stipulated, newly elected 340 Local Government authorities have to be formed by, or before, March 20, 2023.

Semasinghe said that had he been in the Opposition, he, too, would have certainly adopted that stance. “Therefore, I don’t find fault with Prof. Peiris for taking essentially a political stand that may not be realistic in view of the developing crisis. We are not out of the woods yet,” State Minister Semasinghe said, urging the Opposition to be mindful of the daunting challenges ahead.

The lastast LG polls were held in Feb. 2018, during the Yahapalana administration.

Responding to The Island queries, MP Semasinghe said that the entire parliamentary group, and members of the Cabinet, chaired by the executive, should accept responsibility for the current crisis.

The State Minister said that he couldn’t absolve himself of the responsibility, though he never represented the Cabinet at the time. Those who quit, or dropped, from the Cabinet, since the eruption of the controversy over the Yugadanavi power plant, in Sept. 2021, and those remained therein, were collectively responsible. “Let there be a thorough reappraisal of the decisions taken during Gotabaya Rajapaksa’s presidency,” the State Minister said.

MP Semasinghe strongly denied accusations that he was opposed to Local Government elections. The SLPP had the wherewithal to meet electoral challenge at any level, the lawmaker declared, underscoring the need to address the issues at hand before attention could be diverted.

The Minister said that priority should be given to, what he called, economic re-building measures. The MP asked whether those who had been demanding LG polls considered them urgent remedy for the crisis. According to the State Minister, some Opposition elements felt an electoral contest, early next year, would be advantageous to them, regardless of the consequences. “They do not realise that an election campaign will definitely discourage political parties from reaching the much required consensus on an economic recovery plan. Consequences will be devastating,” the State Minister said, warning the Opposition not to take advantage of the situation.

Whatever the criticism of the budget proposals, presented by President Ranil Wickremesinghe, in his capacity as the Finance Minister, received the approval of Parliament, lawmaker Semasinghe said. Therefore, the Opposition should now throw its weight behind the ongoing government efforts to rebuild the economy, the State Minister added. Unfortunately, there were interested parties who felt further delay in the finalization of the agreement with Washington-based International Monetary Fund (IMF), in respect of the USD 2.9 bn loan, would be politically advantageous to them.

State Minister Semasinghe said that those who exploited the current crisis could be compared with the political setup which took advantage of the war at a time the LTTE seemed invincible.

Responding to another query, the State Minister said that the USD 2.9 bn could be finalized once all creditors approved the overall resuscitation plan. MP Semasinghe said that he didn’t want to go into details as negotiations were continuing.

The State Minister also acknowledged that the recovery of unpaid taxes, amounting to billions of Rupees ,as well as remittance of funds ‘parked’ overseas, remained contentious issues which needed serious attention.

Recently, the Committee on Public Enterprises (COPE) revealed that unpaid taxes, accruing interest et al amounted to a staggering Rs 763 bn whereas Justice Minister Dr. Wjeyadasa Rajapaksa, PC declared, both in and out of Parliament, that exporters continued to hold export proceeds amounting to billions of USD in offshore accounts, despite being publicly exposed.



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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

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Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.

Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.

The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.

Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.

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CEB demands 11.57 percent power tariff hike in first quarter

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The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.

According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.

Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.

The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.

In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.

The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.

The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.

Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.

By Sujeewa Thathsara ✍️

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Health Minister sends letter of demand for one billion rupees in damages

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Ondansetron controversy

Minister of Health and Mass Media Dr Nalinda Jayatissa has sent a letter of demand for Rs. 1 billion in damages from YouTube content creator Dharmasri Kariyawasam, accusing him of disseminating false and defamatory material linking the Minister to the importation of Ondansetron and inciting public unrest.

The notice, sent through the Minister’s lawyers, states that investigations are currently under way into 10 medicines, including Ondansetron Injection, manufactured by India-based Maan Pharmaceutical Limited.

Ondansetron Injection was among nine injectable drugs recently suspended by the National Medicines Regulatory Authority (NMRA) following reports of patients administered with the drug suffering adverse complications.

Despite the ongoing investigations, Kariyawasam allegedly aired a widely viewed programme on his YouTube channel titled “The hidden story of the Indian drug that claimed lives, Mayor Balthazaar’s relative, and Minister Nalinda’s cover-up.”

According to the letter of demand, the programme falsely portrayed Minister Jayatissa as being directly responsible for importing the drug, colluding with the supplier, and attempting to conceal the issue, while depicting him as indifferent to public suffering.

The Minister’s lawyers maintain that these allegations are entirely false and defamatory, citing passages in which Kariyawasam allegedly accused Jayatissa of lying about the supplier, concealing facts related to PTC Medicals (Pvt) Ltd., the actual importer, and showing a lack of concern over deaths purportedly linked to the drug.

The programme also claimed links between the directors of PTC Medicals and family members of Colombo Mayor Vraîe Cally Balthazaar, implying political favouritism.

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