News
‘Parliamentary approval irrelevant, President played politics with issue’
Vote on IMF facility likened to death certificate for a buried man
By Shamindra Ferdinando
Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva said that their decision to skip the vote on the ‘Resolution’ for the implementation of the arrangement under the EFF (Extended Fund Facility) of the International Monetary Fund for Sri Lanka shouldn’t be construed as a rejection of the agreement with the IMF.
The chief of SJB’s economic management team said so when The Island sought his explanation for failing to back the agreement with the IMF, having repeatedly urged President Gotabaya Rajapaksa’s government to seek IMF intervention.
Of the 80 lawmakers who skipped Friday’s vote, the majority belonged to the SJB, the main Opposition party.
Pressed to explain what some called the SJB’s dubious stand, the former UNPer and State Minister said his party strongly opposed certain clauses in the IMF agreement, regardless of the appreciation of Washington headquartered lending agency’s intervention. Asked to explain, Dr. de Silva said that on behalf of the SJB, he had told IMF representatives that a future SJB-led administration would definitely seek to alter those disputable sections.
The resolution received the backing of 120 MPs, whereas 25 voted against it. Three Jathika Jana Balawegaya (JJB) MPs and rebel SLPP MPs voted against the resolution. Three SLPP MPs, who have distanced from the government parliamentary group, namely John Seneviratne, Anura Priyadarshana Yapa and Dr. Sudarshini Fernandopulle, threw their weight behind the agreement, whereas the TNA and the SLFP, too, skipped the vote.
The vote was taken electronically, on 28 April, on the third and final date of the debate.
Dr. de Silva stressed that the agreement with the IMF did not require parliamentary approval at all. Alleging that President Ranil Wickremesinghe sought to exploit the situation to the advantage of his government, Dr. de Silva likened the parliamentary approval for the IMF agreement to obtaining a death certificate for a buried man.
Pointing out that Sri Lanka, over a period of time, sought IMF interventions, on 16 occasions, Dr. de Silva said that no previous government did make a song and dance about seeking such assistance.
Emphasizing the vital importance in securing IMF assistance, amounting to USD 2.9 bn, over a period of four years, the Colombo District MP said that the SJB never wanted to sabotage the process. The Wickremesinghe-Rajapaksa government could have sought a consensus with the Opposition before finalizing the Staff Level agreement with the IMF, on 01 September, last year. Unfortunately, even after that the government quite conveniently kept the Opposition out of the process and the situation remained the same till the IMF Executive Board approved the loan on 20 March, 2023, Dr. De Silva said.
Why on earth a three-day debate is held to discuss a finalized agreement, lawmaker de Silva asked, pointing out that Sri Lanka has received the first tranche immediately after the IMF Executive Board’s approval.
Responding to further questions, the economist said that the IMF agreement, now in operation, essentially focused on stabilizing the economy. However, Sri Lanka needs economic stability, plus growth, the former Chairman of the Committee on Public Enterprises (COPE) said.
Lawmaker de Silva said that 36% tax rate on personal income and corporate profit tax of 30% on exporters weren’t acceptable. “We’ll certainly initiate negotiations with the IMF in this regard,” the one-time Wickremesinghe’s deputy, during the Yahapalana, administration said.
The MP expressed the belief that the government could have secured much better agreement if Sri Lanka’s proposals were presented, after having reached an understanding with major political parties represented in Parliament.
News
Theft of USD 2.5 mn from Treasury: CoPF accused of complicity in NPP cover-up
Harsha rejects what he called frivolous accusations
Chairman of Committee on Public Finance (CoPF) Dr. Harsha de Silva dismissed Free Lawyers’ claim that his Committee had helped delay a proper investigation into the theft of USD 2.5 mn (nearly Rs 1 bn) from the Treasury.
The Colombo District SJB MP said that he wouldn’t comment on frivolous accusations against his Committee. “We conduct ourselves in keeping with the highest standards of professionalism and responsibility.”
Dr. de Silva said so when The Island raised the Free Lawyers’ allegation that the Treasury and the Central Bank were using the CoPF as a tool to prolong investigations into the unprecedented theft of funds. Free Lawyers targeted the CoPF in a statement issued by Maithri Gunaratne, PC, and civil society activist Rajith Keerthi Tennakoon.
The other members of the CoPF are Harshana Rajakaruna (SJB), Ravi Karunanayake (NDF), Nimal Palihena (NPP), Wijesiri Basnayake (NPP), Thilina Samarakoon (NPP), Lakmali Hemachandra (NPP), Chathuranga Abeysinghe (NPP), Kaushalya Ariyaratne (NPP), Akram Ilyas (NPP), Shanakiyan Rajaputhiran Rasamanikkyam (ITAK), Champika Hettiarachchi (NPP), Sunil Rajapaksha (NPP),
M. K. M. Aslam (NPP), Ajith Agalakada (NPP), Rauff Hakeem (SLMC), Chitral Fernando (SJB) and Nishantha Jayaweera (NPP).
Tennakoon said the theft of funds happened over eight months ago and the Parliament owed the country a clear explanation regarding the disappearance of USD 2.5 mn. The CoPF, instead of expediting the process, has conveniently granted time for those responsible for the loss to cover up their tracks. “Free Lawyers pursue the issue at hand vigorously as we were the first to reveal the loss of USD 2.5 mn. Those who knew it remained silent until our disclosure,” he said, alleging that Speaker Dr. Jagath Wickremaratne was yet to respond to their letter regarding the USD 2.5 theft.
Responding to queries, Tennakoon said that political parties represented in the CoPF should be held responsible for the developing situation. “The Committee on Public Accounts Committee (CoPA) headed by SJB MP Kabir Hashim too, should explain its failure to deal with the USD 2.5 mn theft. Both CoPF and CoPA led by two SJB MPs should act now. Dr. de Silva and Hashim are answerable to the public, particularly because they represent the main Opposition.”
The CoPA consists of Kabir Hashim, Maj. Gen. Aruna Jayasekera (NPP), Sugath Thilakaratne (NPP), Anton Jayakody (NPP), Chandana Sooriyaarachchi (NPP), Ruwanthilaka Jayakody (NPP), Nalin Hewage (NPP), Oshani Umanga (NPP), Manjula Suraweera (NPP), Sagarika Athauda (NPP), Janaka Senarathna (NPP), K.Illankumaran (NPP), Dinidu Saman Henanayake (NPP), Susantha Kumara Navaratna (NPP), Lal Premanath (NPP), Aravinda Senarath (NPP), Thushari Jayasinghe (NPP), T. K. Jayasundera, Ajantha Gammeddage (NPP), Sundaralingam Pradeep (NPP), Kavinda Jayawardena (SJB), J.C. Alawathuwala (SJB),Hector Appuhamy (SJB), Kaveenthiran Kodeeswaran (ITAK), Chamara Sampath Dassanayake (NDF), Rohitha Abeygunawardena (NDF), M.L.A.M. Hisbullah (SLMC), M.A.M. Thahir (ACMC), Chanaka Madugoda (SLPP) and Sunil Ratnasiri (NPP).
Tennakoon said that both CoPF and CoPA were dominated by the NPP though the SJBers headed them. However, as heads of the two parliamentary committees, Dr. de Silva and Hashim, should be held responsible for lapses on the part of the committees or any deliberate omissions, Tennakoon said, questioning the rationale behind giving the Treasury and the CBSL six weeks to submit their findings to the CoPF.
Free Lawyers alleged that USD 2.5 had been released in spite of JP Morgan Chase and the Federal Reserve in the United States warning Sri Lanka about the suspicious nature of those foreign transactions via SWIFT messages. Tennakoon emphasized investigators should closely inquire into the decision taken to release funds regardless of such high-profile warnings.
Tennakoon said that the integrity of two key parliamentary committees is at stake. The civil society activist said that the country was in a highly critical phase of debt restructuring following a severe economic crisis. Tennakoon pointed out in terms of a condition of the International Monetary Fund (IMF) loan programme, the government’s debt management functions, previously carried out by the CBSL, were recently transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).
by Shamindra Ferdinando
News
Viral diseases on the rise
The number of patients hospitalised due to viral illnesses, including dengue fever, had increased significantly, health officials said yesterday, adding that there had been a rise in daily dengue-related admissions.
Acting Director of the National Dengue Control Unit Dr. Kapila Kannangara said Sri Lanka had recorded 41,144 dengue cases as of Saturday (13).
He said more than half of the reported cases—around 51 percent—were from the Western Province.
According to Dr. Kannangara, the number of dengue patients admitted to hospital daily had reached 750, but it had declined to around 630. However, he cautioned that infection levels remained “very high,” despite the slight drop in hospital admissions.
The dengue death toll has risen to 24, prompting several hospitals to issue red alerts amid continued pressure on wards treating incoming patients.
Health officials warned that the situation could worsen if case numbers continued to rise. Dr. Kannangara noted that the growing burden on healthcare facilities could eventually exceed system capacity.
The public has been urged to take preventive measures to eliminate mosquito breeding sites and to seek prompt medical attention if dengue symptoms develop.
by Chaminda Silva
News
Ranil warns of another economic crisis, calls for Opposition unity
Former President and UNP leader Ranil Wickremesinghe has warned that Sri Lanka is heading towards a severe economic crisis, alleging that the current administration is steering the country towards “total collapse.”
Addressing a meeting of the UNP Working Committee at the party headquarters on Flower Road on Thursday, Wickremesinghe claimed that the government was facing mounting difficulties on multiple fronts, with the economy continuing to deteriorate.
He also accused the administration of pursuing policies that, he said, marginalised war heroes and Buddhist monks.
Wickremesinghe expressed concern over what he described as an erosion of fundamental and legal rights, citing the arrest and alleged ill-treatment of former State Intelligence Service Chief Suresh Sallay as an example. He said the rising cost of living had emerged as one of the main concerns of the public.
Commenting on the political situation, the former President said the Opposition had not been able to forge unity among the anti-government forces and called for greater coordination among Opposition parties and groups. He advocated a phased mobilisation strategy, beginning at village and electorate level, instead of attempting to address all issues simultaneously.
Wickremesinghe also announced a series of political campaigns and rallies aimed at strengthening the Opposition movement. The programme is scheduled to commence in Kandy this weekend, with subsequent events planned in Kurunegala and Kalutara.
He said the UNP was engaged in discussions with several political parties and organisations, including those led by Minister Jeevan Thondaman, with a view to forming a broader political alliance.Wickremesinghe urged party members to expedite discussions and arrive at a collective decision on the way forward to address the country’s challenges.
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