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Minister Cabraal says lockdowns as devastating as Covid-19

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By Shamindra Ferdinando

State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal says that in spite pressure mounting on the govenrment to extend the current lockdown further, it should tread cautiously.

State Minister Cabraal, who served as the Governor of the Central Bank, from 2006 to 2015, said that lockdowns caused irreparable damage at a time the national economy was under severe pressure due to Covid-19. The lockdowns could be quite devastating and inflict unbearable losses on the economy, he noted.

Cabraal pointed out that those who relentlessly pushed for lockdowns didn’t take into consideration other vital factors. He said the people should strictly follow health guidelines and get vaccinated, as quickly as possible.

In addition to State Minister Cabraal, Aviation Minister and SLPP strongman in Gampaha, Prasanna Ranatunga, also opposed the lockdown.

Noting that a section of the government, too, had called for the lockdown, State Minister Cabraal urged all stakeholders to examine the situation in its entirety without focusing on selected factors.

The Island: State Minister, you emphasised several times how lockdown undermined the national economy. You also pointed out difficulties caused by it. However, the government not only declared a lockdown on August 20 for ten days, but extended it till Sept 6. Did you ask/advise the administration against it?

State Minister: Medical authorities have been constantly requesting the lockdown of the country in order to deal with the pandemic. Unfortunately, the counter argument setting out the economic damage that is caused as a result of such closure has not been presented adequately. That is why it’s important that the facts, figures and impact of a lockdown are known and understood, so that more informed decisions can be made in the future.

The Island: In 2018 and 2019 govt collected over Rs 1,900 as revenue. But, that figure dropped to little over Rs 1,300 bn in 2020. Can you blame that on Covid because the Opposition says the government lost over Rs 500 bn by doing away with a spate of taxes on addition to the reduction of duty on sugar to 25 cents from Rs 50 per kilo?

State Minister: In 2019, the government had estimated to collect about Rs. 2.2 trillion as revenue. However, due to the sharp contraction of the economy following the massive Easter Sunday carnage that sent shock waves across the world and debilitated the country’s vibrant tourism industry, the actual revenue dropped drastically to about Rs. 1.9 trillion only: a decrease of about Rs. 0.3 trillion! Hence, it was clear that the abnormally high rates of income taxes, VAT and other duties were counterproductive and were not yielding the estimated results. That is why the new government reduced the tax rates so that the business sector could be given a boost to grow fast and the economy could revive and recover. In fact, ifhad the government not reduced taxes at that time, the entire business sector would have collapsed because by that time, businesses were stagnant due to the high interest rates and high taxes. Unfortunately, however, the progressive policy measure of lowering all taxes including customs duties, did not lead to the intended consequence of the expected stimulation of the economy mainly due to the pandemic effect and lockdown. However, it must be said that the economic fallout from the pandemic would have been a lot worse and people driven to severe poverty and despair had the taxes not been reduced by end 2019. In fact, in such a scenario, the entire country may have even come to a grinding halt, with the industries and services sectors collapsing.



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Navy conducts shipwreck expedition

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The Sri Lanka Navy conducted a successful shipwreck expedition from 10 to 17 Mar 25, focusing on historically significant shipwrecks located in the sea area off the coast of Colombo.

The expedition was carried out to document the current state of numerous shipwrecks lying beneath the waves, off Colombo. The survey included the Coal Wreck, Chief Dragon Car Carrier, MV Astoria, MT Nilgiri, Thermopylae Sierra, MV Pecheur Breton, Taprobane East Wreck, SS Worcestershire, Toilet Barge, SS Perseus and some other unidentified wrecks.

Navy divers explored a series of shipwrecks, including the historically significant SS Worcestershire and SS Perseus, both sunk during World War I. Beyond their historical value, the wrecks of the Chief Dragon Car Carrier and Thermopylae Sierra are now functioning as thriving artificial reefs, providing habitats for a variety of marine species.

A total of 14 diving officers and 15 diving sailors participated in this intensive shipwreck expedition. They used both atmospheric air and nitrox air mix as breathing agents, depending on depth and dive duration. This enhanced safety and efficiency, particularly for deeper and more complex dives.

As part of the “Clean Sri Lanka” programme, the Sri Lanka Navy has extended its all-out support to preserve the nation’s maritime heritage, while promoting the island as an appealing tourist destination. These efforts also reflect the Navy’s archaeological value through similar initiatives.

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Health professionals’ strikes are unacceptable despite the largest salary increase given by a government as at date – President

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President Anura Kumara Disanayake stated that the trade union actions by healthcare professionals cannot be justified, considering that the largest salary increase in history granted by a government without any demands or pressure from professional associations has already been implemented.

The President made these remarks during a meeting held on Wednesday (19) at the Presidential Secretariat with the Public Services United Nurses Union (PSUNU).

President Anura Kumara Disanayake highlighted that despite operating within a constrained economic framework, the government has prioritized increasing the basic salaries of public sector employees in this year’s budget. This initiative aims to enhance the efficiency of the public service, attract skilled professionals, and ensure the sustainability of the sector.

The President stated that salaries have been increased under six key categories in the budget. These include a minimum increase of Rs. 15,000 in the basic salary, an increment in overtime and holiday allowances, an 80% increase in salary increments, an upward revision of pension benefits in line with the revised total salary, and an increase in the taxable income threshold.

Officials from the PSUNU expressed their appreciation for the salary increments, highlighting that they have been well received by a significant portion of the public sector workforce. They also brought to the President’s attention the existing challenges within the nursing profession and requested prompt solutions to address these issues.

The meeting was attended by the Chancellor of the University of Colombo, Chief Sanganayaka of Western Province, the Chairman of PSUNU Most Ven. Muruththettuwe Ananda Thera, Minister of Health and Mass Media Dr. Nalinda Jayatissa, Secretary to the President Dr. Nandika Sanath Kumanayake along with several officials from the PSUNU.

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VIP security: MR’s plea for restoration of military contingent dismissed

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Mahinda

The Supreme Court yesterday (19) dismissed former President Mahinda Rajapaksa’s plea for restoration of his security contingent, consisting of military personnel, including commandos. The SC bench comprising Preethi Padman Surasena, Achala Wengappuli and Mahinda Samayawardhana dismissed the petition without taking it up for hearing.

The former President, in a rights petition, challenged the National People’s Power (NPP) government’s decision to reduce his security contingent to 60 personnel. The war-winning President alleged that the reduction had been done without proper evaluation.

The SC took up the case on February 6 and reconvened yesterday to review the petition.

Former Minister and President’s Counsel Ali Sabry appeared for the former President who filed the case on January 24.

Members of the Cabinet were named as respondents.

The former President alleged that his fundamental rights had been violated by depriving him of security provided by the military.

Rajapaksa, who played a key role in ending the country’s nearly three-decade-long war, expressed concerns about ongoing threats to his life, including potential terrorist threats.

The former President requested the Court to determine that his fundamental human rights were violated by the arbitrary reduction of his security contingent.

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