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Possible disruption in fuel supplies as claimed by trade unionist symptomatic of far bigger economic crisis – former Governor
‘Why not arrest Minister Gammanpila for predicting collapse of banking sector’
By Shamindra Ferdinando
Former Governor of Uva, Southern and Central Provinces Rajith Keerthi Tennakoon says the arrest of UNP trade union leader Ananda Palitha over his disputed claim that the country would soon run out of both diesel and petrol unless fresh orders were placed immediately highlighted the economic crisis.
The SLPP government couldn’t solve the impending fuel shortage or suppress the truth by taking Ananda Palitha into custody, Tennakoon told The Island. Although the statement had created panic buying, he stood by Palitha’s statement, Tennakoon said.
The civil society activist pointed out that Ananda Palitha highlighted the daunting challenge in ensuring uninterrupted fuel supplies whereas the overall situation was far worse. “The crisis highlighted by Ananda Palitha is just one factor or symptom,” Tennakoon said, urging the government and the Parliament to examine the situation thoroughly or face the consequences.
Ananda Palitha’s statement actually meant that the country was in dire straits due to USD shortage, Tennakoon said.
Responding to another query, Tennakoon said that those who had lodged a complaint with the Criminal Investigation Department (CID) against Ananda Palitha owed an explanation as regards the government’s failure to settle oil import bills during the past 16 months.
The former Executive Director of an independent polls monitoring body Caffe claimed that Sri Lanka couldn’t attract suppliers for the last two crude oil tenders. Subsequently, about three weeks ago a ship carrying crude oil had to be anchored outside the Colombo harbour due to the government’s failure to make necessary payments. Tennakoon said that fuel stock was unloaded after the government made what he called other arrangements with the supplier.
Citing the fact that a significant 18 percent of Sri Lanka’s total import bill was for fuel, Tennakoon pointed out how the government conveniently forgot the recent crisis caused by shortage experienced by Laugfs customers. If the CID arrested Ananda Palitha on a complaint lodged by the Energy Ministry as regards warning of an impending fuel shortage, Laugfs Chairman W.K.H. Wegapitiya, too, should be taken into custody, Tennakoon said. Wegapitiya repeatedly declared there would be a gas shortage unless the government agreed to an immediate increase in gas prices, Tennakoon said. Having inconvenienced Laugfs customers by delaying the price increase the government finally gave in, Tennakoon said.
Tennakoon pointed out that the government owned Litro Gas, too, had asked permission from the government to increase price of its domestic and industrial products though some ministers repeatedly vowed to maintain the current price levels regardless of Laugfs increasing its prices. Then Litro Chairman, too, had to be arrested for seeking a price revision, Tennakoon said, adding the government owed an explanation regarding its response to milk importers threat to stop importers unless the government granted them a price increase. Noting that instead of granting price increase the government slashed duty on milk food imports, Tennakoon said that the SLPP government’s biggest blunder was slashing the entire range of taxes and duties immediately after forming the government.
Tennakoon said that SLIC owned Litro suffered nearly Rs 1.4 bn losses by selling gas at a loss.
Tennakoon alleged that the Treasury lost well over Rs. 500 bn due to a controversial decision to do away with a range of taxes, including PAYE (Pay As You Earn), NBT (Nation Building Tax), Withholding tax, Capital Gain tax imposed on the Colombo Stock Exchange, Bank Debit tax and unprecedented reduction of VAT (Value Added Tax). Tennakoon pointed out the 15% VAT and the 2% NBT which amounted to 17% imposed on all goods and services were unified and reduced to 8%, effective from the first of December 2019. According to him the decision was taken at the first cabinet meeting of the incumbent government held on Nov 27, 2019.
As a result of foolish government decisions taken without proper study, revenue plummeted drastically, Tennakoon said.
Referring to the Central Bank Report 2020, Tennakoon said that the total revenue for 2018 and 2019 had been Rs 1,950 bn and Rs 1,900 bn, respectively, whereas it dropped to Rs 1,373 in 2020. “The SLPP is responsible for this situation,” the civil society activist said, urging the Opposition to take up the issue both in and outside parliament.
Tennakoon said that if Ananda Palitha could be arrested for warning of a fuel shortage, Energy Minister attorney-at-law Udaya Gammanpila too should be taken into custody for predicting the collapse of the entire banking sector unless the government increased fuel price. Minister Gammanpila repeatedly warned of catastrophe due to disparity in world market and local prices.
Referring to President Gotabaya Rajapaksa’s statements to the nation in late June and last Friday, Tennakoon said that no less a person than the President admitted the difficulty in making loan/interest payments amounting to USD 4 bn annually.
Tennakoon said that the SLPP government couldn’t suppress the truth. Referring to a press conference organized by the President’s Media Division (PMD) a couple of weeks ago, Tennakoon said that Treasury Secretary S.R. Attygalle refrained from responding to The Island query on the Treasury losing over Rs 500 bn due to tax and duty slash. Did the SLPP consult the Treasury Secretary before slashing taxes and duties? Tennakoon asked.
Tennakoon reminded the government how it suffered massive revenue losses by slashing duty on sugar in Oct last year. That racket was followed by slashing of duty on milk food imports recently, Tennakoon said, pointing out Dr. Gunadasa Amarasekera accused a section of the government of facilitating milk food import scam.
“Take the public into confidence. Tell them the truth. Ask people to cut down on consumption. We are in a messy situation,” Tennakoon said, calling for review of fiscal policies. Tennakoon urged the parliament to address issues raised by watchdog committees COPE, COPA and COPF before formulating its response to the rapid deterioration of the economic situation. Tennakoon emphasized that the government should consult the parliament. Remedial measures should depend on consultations as unilateral decisions could worsen the situation further, Tennakoon warned.
Tennakoon said that the government should address the crises without further delay. The recent cabinet reshuffle revealed the government lacked even the basic understanding of the current crisis and still believed people could be deceived by utterly stupid actions.
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Already crowned the Group D winners, the US arrived in Los Angeles seeking to extend a perfect start with a third win, but with more than an eye on next Wednesday’s last 32 meeting against Bosnia and Herzegovina.
For Turkiye, already eliminated and without even a goal after disastrous losses to Paraguay and Australia, the only objective was to restore some pride.
Despite the low stakes and substantially reshuffled lineups for both teams, a packed Los Angeles Stadium was in a deafening mood.

For the third game running, the US got off to a dream start. One of nine changes, backup centre-back Auston Trusty, was unmarked at the far post from a US corner, given time to cushion the ball with his left foot, then blast it home.
It was the Celtic defender’s first international goal, and – at just under three minutes – the second-fastest by the US at a World Cup.
But Turkiye did not surrender. Having not scored in 62 efforts across their first two games, it was the 63rd time lucky for the Turks, and their star man, Arda Guler.
The Real Madrid forward duped Mark McKenzie with a clever dummy, allowing the ball to run down the right flank to Baris Alper Yilmaz.
Yilmaz crossed it back to Guler, who smashed it past Matt Turner to equalise in the 10th minute.

With Brad Pitt and Edward Norton among the Hollywood crowd, the game threatened to become a fight club, as Turkiye’s bench rushed the field to protest a foul by the combative Sebastian Berhalter, who earned a yellow.
The Americans thought they had restored the lead, with McKenzie the second US centre-back to put the ball in the net. But his sharp response to Ricardo Pepi’s saved shot was ruled offside.
In the 31st minute, the US found themselves behind for the first time this World Cup.
Guler spotted Eren Elmali’s overlapping run, feeding it to the wing-back, who cut the ball back from the left byline to Yilmaz, who steered it beyond the keeper.
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The half-time break proved the perfect tonic for the US. In the 49th minute, they were back level from a long throw by McKenzie.
The ball was cleared by Turkiye only as far as Berhalter, who did well to smash his shot low into the bottom corner.
The crowd erupted again just before the hour mark as Mauricio Pochettino sent on Christian Pulisic, undoubtedly the US’s biggest star, who will shoulder much of the cohosts’ hopes of a deep run into the knockouts.
Nicknamed “Captain America”, Pulisic earned his own round of “USA” chants, having not appeared since aggravating an injury in the first half of the opening win against Paraguay two weeks ago.
Pulisic immediately looked lively, twice having his effort blocked from close range after darting runs from the left. He knew less about a ball that looped off his shin onto the post.
Turkiye began to knock on the door again. A Yildiz effort curled inches wide in the 72nd minute.
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Turkiye were jubilant, while the American players clustered in a circle after the final whistle, seemingly determined not to let the gut punch spoil a campaign that had been off to a flying start.

[Aljazeera]
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The discussion was focused on further strengthening cooperation and engagement with the Government of Sri Lanka on ensuring the protection and well-being of children, and efforts to prevent and respond to all forms of violence against children.
During the meeting, the Prime Minister acknowledged UNICEF’s continued support to Sri Lanka, particularly during the response to Cyclone Ditwah, as well as its longstanding contributions to reforms in education and early childhood education and initiatives aimed at preventing and addressing violence against children.
The Prime Minister noted that while Sri Lanka has made significant progress in developing policies, the challenge lies in ensuring their effective implementation. She emphasized the need to address gaps in institutional capacity and human resources, while strengthening coordination among the various parts responsible for child protection while highlighting the critical role of frontline workers in the delivery of child protection services.
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Dr. Najat Maalla M’jid highlighted the importance of strengthening the competencies of frontline professionals on psycho social support, early detection, defining direct signs, techniques of effective listening, and safeguarding privacy. The discussions also underscored the growing importance of protecting children from online violence and abuse, and the need to strengthen measures to ensure children’s safety in digital environments.
The meeting was attended by Dr. Najat Maalla M’jid, United Nations Special Representative of the Secretary-General on Violence Against Children; Ms. Emma Brigham, UNICEF Representative; Mr. Marc-André Franche, United Nations Resident Coordinator; officials from the Ministry of Foreign Affairs; and additional secretaries and officials from the Ministry of Education.
[Prime Minister’s Media Division]
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