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LSSP blames neoliberal policies for present crisis

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Leader of the Lanka Sama Samaja Party (LSSP) Prof Tissa Vitarana says that the current crisis is due to a shrinking economy and high inflation.

“There is a lack of both dollars and of rupees. The lack of dollars is a result of the neoliberal policies of successive governments, since 1978, which raised our foreign debt to US$ 52 billion and brought down our foreign exchange (forex) reserves from US$ 8 billion to a few millions. The worst offender was the “Yahapalana” government of 2015, led by Ranil Wickremesinghe, which borrowed $ 12.5 billion,” Prof Vitarana says, in a message to mark the LSSP anniversary that falls tomorrow (20)

“When the LSSP is commemorating its 87th Anniversary, I send this message to our friendly people with a feeling of deep sadness. Most of the people of Sri Lanka are facing great hardships at this time of severe economic, social and political crisis. More than 65 % of families, whose income is below the poverty line, are going hungry, the parents having one meal a day so that the children can have two. This too is lacking in protein, vitamins and essential elements Even if they manage to get rice, only about 50% of their protein needs are obtained. This mainly affects the children and the malnutrition levels among them exceed 20%, so that the future generations, too, will suffer with poor physical and mental development. Due to the contraction of the economy many small and medium industries are closing down or cutting staff. Unemployment is rising steeply. Everyone is suffering due to the electricity power cuts, the shortage and high prices of food, fuel, gas and medicines. Thousands of educated youth that the country needs are leaving our shores. Many who remain are enticed to become drug addicts and prostitutes.

“Action taken by Dr.N.M.Perera of the LLSSP, as Finance Minister, to solve the severe 1972/3 crisis provides the basis for a solution. Then the shortage of essential imports and the price rise was higher than today (e.g. the import of a ton of sugar rose from 43 British pounds to 600). He prevailed on the PM, Sirimavo Bandaranaike, to impose severe restrictions on imports and promoted exports to solve our adverse balance of payments situation. He imposed high taxes (75%) on the rich who did not invest their capital for development so that the Government could play a leading role in overcoming the crisis, reduce poverty and develop the country. He promoted science and technology to develop a national economy that would be self-sufficient and increase exports. There were no indirect taxes like VAT that passed the burden of the crisis on to the people, specially the poor. He brought down inflation by strengthening and linking the producer and consumer cooperatives, and strengthened the role of the food and marketing departments, eliminating exploitation by the traders and middlemen. By 1975 he produced a surplus Budget and raised the Foreign Exchange Reserve from USD 1 billion to nearly 4 billion, and restored normalcy, overcoming the crisis.

“The current crisis is due to a shrinking economy and high inflation. There is both a lack of Dollars and of Rupees for the Government. The lack of Dollars is a result of the neoliberal policies of successive governments since 1978 which raised our foreign debt to US$ 52 billion and brought down our foreign exchange (forex) reserves from US$ 8 billion to a few millions. The worst offender was the “Yahapalana” government of 2015, led by Ranil Wickremasinghe, which borrowed $ 12.5 billion. The dollar crisis is due to an annual debt servicing cost, which last year was $ 6.3 billion. It was not due to an adverse foreign trade balance, as our forex earnings in 2021 were $ 21 billion, exceeding our import cost of $ 20 billion by one billion. I am glad that the SLPP Government stopped the import of vehicles and the present Government has banned the import of a large list of non-essential imports. If this is properly done there will be no need to borrow further from the multilateral donors, led by the IMF, and get further into debt, and also have to sell our valuable assets. We can escape the debt trap and have the dollars to get the fuel, fertiliser, gas, food and medicines that the people need, keeping the price down, by properly run Sathosas, Cooperatives, etc. A five-year moratorium on debt will give us $ 35 billion to develop value-added industries using our agricultural and natural resources (ilmenite and graphite) to provide jobs for our youth. The technology will be provided to SMEs through the Vidatha Centres at Divisional level and Hi-Tech at central level e.g. SLINTEC nanotechnology) with emphasis on exports.

“Immediate action must be taken to bring down the cost of living. Left Government policies must be combined with empowerment of the people. Properly elected producer and consumer Co-operatives will ensure that the producer gets a proper price while the consumer cost is minimized. The middlemen exploitation is eliminated. Low interest credit for farmers and entrepreneurs from the Central Bank Fund could be made available through the Rural Banks and Vidatha Centres. The problem of rural microcredit at high interest must be overcome. Farmers will be supported to practice ecoagriculture. All failed state and private institutions could be run under the “solidarity economy” principle, where the lease/ ownership will be in the hands of the workers, who alone get the profits, having one share each in the company. Through these and other measures it will be possible to recover from this crisis, as Dr. N M Perera did in 1972/3. Sri Lanka can emerge from this crisis, eliminate poverty and become a developed country if a progressive Government which implements the above LSSP policies comes to power. I invite all honest people who accept these policies to join us to get rid of poverty and make Sri Lanka a developed country.

“The LSSP was formed in 1935 and led the fight for national independence. The LSSP was banned and its leaders like Dr N M Perera and Dr. Colvin R de Silva jailed. They broke jail and escaped to India where they joined the independence struggle led by Gandhi and Nehru, as part of the Congress Socialist Party. They returned at the end of the war in 1945 and led the General Strike of 1947 in which the Police fired at Dr. N M Perera, but comrade Kandasamy who was by his side died. The Great Hartal of 1953 was led by the LSSP against the raising of the price of rice by the UNP Government from 25 cents a measure to 72 cents. When anti-Tamil racism was at its worst and Sinhala only was made the official language the LSSP fought for Tamil also to be made official. Yhis was finally granted in 1957. Sri Lanka became a truly independent sovereign state with the passing of the Republican Constitution drafted by Dr. Colvin R de Silva in 1972.”



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Construction of Jet A-1 Aviation fuel pipeline and new oil tank complex at Muthurajawela begins under President’s patronage

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President Anura Kumara Dissanayake said that the Government’s objective is to maintain a strong state presence in the energy market while providing an efficient service to the people, adding that significant progress has been achieved towards this objective over the past two years and that a strong energy market that does not place a burden on the people is now being built in Sri Lanka.

The President made these remarks on Friday (02) morning  while attending the commencement of construction of the Jet A-1 pipeline system of the Ceylon Petroleum Corporation (CPC) and two new oil storage tank systems belonging to the CPC and the Ceylon Petroleum Storage Terminal Limited (CPSTL).

The projects are being implemented in line with the Government’s national objective of developing infrastructure in the energy sector, with the aim of ensuring the security of aviation fuel supplies, reducing supply costs and providing the capacity required to meet future demand for aviation fuel.

A dedicated pipeline and associated tank complex are being constructed to connect Muthurajawela with the Bandaranaike International Airport in Katunayake, with the aim of meeting the future demand of the country’s aviation sector, ensuring the security of aviation fuel supplies and reducing transportation costs.

Construction has commenced on five new Jet A-1 fuel storage tanks with a total capacity of 92,000 cubic metres. These comprise two large Jet A-1 tanks, each with a capacity of 30,000 cubic metres; two medium-sized tanks, each with a capacity of 15,000 cubic metres; and an additional tank with a capacity of 2,000 cubic metres. The fuel supply pipeline system will be connected to the airport through a 21-kilometre-long underground pipeline with a diameter of 10 inches from the Muthurajawela tank complex. The project is scheduled for completion within 30 months.

Meanwhile, as part of ongoing efforts to strengthen and expand storage and infrastructure facilities in the petroleum industry, the Ceylon Petroleum Storage Terminal Limited (CPSTL) commenced construction today of three new storage tanks at the Muthurajawela Terminal.

Upon completion, the three-tank system, comprising two tanks with a capacity of 15,000 cubic metres each and one tank with a capacity of 10,000 cubic metres, will provide an additional total storage capacity of 40,000 cubic metres.

This will further enhance the petroleum storage capacity of the terminal and support the continued development of the country’s petroleum infrastructure. The project has a contractual period of 18 months and is scheduled for completion in April 2028.

The tanks are being constructed in compliance with relevant international standards and recognised industry best practices, ensuring enhanced safety, reliability and operational efficiency. The additional storage capacity will strengthen the country’s fuel reserves, improve operational flexibility and support the reliable and uninterrupted distribution of fuel products to meet the country’s growing energy requirements.

Minister of Ports and Civil Aviation and Minister of Energy Anura Karunathilaka said,

“We are now in an era of energy transition. The world is rapidly moving towards the use of clean energy. The use of electric vehicles is very important in this regard, and our country is also now moving in that direction.

The use of solar energy is also important. We expect to add 1,200 megawatts of solar power capacity to the national grid by 2029.

As a country, we must focus not only on controlling fuel prices but also on controlling fuel consumption. The public also has a major responsibility in this regard.

It is particularly important to change our patterns of energy consumption. Greater energy security can be achieved by avoiding periods of high energy demand, shifting towards electricity use and using fuel-efficient vehicles, particularly electric vehicles.”

Chairman of the Ceylon Petroleum Corporation D. J. Rajakaruna said,

“We faced a major challenge due to the war in the Middle East. However, with the intervention of the President, relief was provided to the people and the situation was managed very effectively.

As a result, while diesel prices in the global market increased by 91%, the increase in Sri Lanka was only around 39.5%. While petrol prices in the global market increased by 80%, the increase in Sri Lanka was only around 41%.

Despite providing fuel at lower prices in this manner, the Corporation has recorded a profit of Rs. 28 billion this year. We also recorded a profit of Rs. 36 billion last year.

This may raise the question of why fuel prices are not being reduced when there are such profits.

However, we have used those profits to commence a number of infrastructure development projects at the institution.

These include adding the capacity of 11 tanks, including the construction of six tanks that had previously been abandoned, to increase fuel storage capacity; modernising our oil-filling section, which is more than 90 years old, and establishing a gantry system similar to that at Muthurajawela; laying two new pipelines for unloading fuel from the port to Kolonnawa; constructing a new pipeline to transport Jet A-1 fuel to Katunayake; and upgrading the pipeline system and laying new pipelines, among many other projects.

We are implementing these projects using those profits. Therefore, we have returned the benefits to the people through these investments.”

The Minister of Science and Technology, Professor Chrishantha Abeysena; Deputy Minister of Energy, Arkam Ilyas; Member of Parliament Kumara Jayakody; Secretary to the Ministry of Energy and Senior Additional Secretary to the President, Russell Aponso; foreign ambassadors; government officials including officials of the Ministry of Energy and the Ceylon Petroleum Corporation; and representatives of Sinopec were among those present at the occasion.

President’s Media Division (PMD)

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Lanka enters new phase of prosecutions as hurdles clear

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MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.

Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.

An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.

President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.

In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.

Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne

— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.

SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.

Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.

Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.

Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.

She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.

At the time, the family spokesman said she was due to return in three days.

“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.

“We have cleared the legal hurdles to press ahead with more arrests,” he said.

“We are working on a few administrative issues which will be resolved very soon.”

The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.

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Police warn: Court evaders face property seizure

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Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.

Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.

The proclamation must allow the person at least 30 days to appear before court, Police said.

If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.

This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.

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