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Ranawaka: It’s possible to prosecute those who bankrupted country

Published

3 years ago

2022/09/26

by Saman Indrajith

Leader of the 43 Brigade and independent MP Patali Champika Ranawaka has called for legal action against politicians and officials responsible for the country’s bankruptcy.Speaking at a meeting with the Executive Committee members of the Sri Lanka Parliamentary Journalists’ Association, at the Solis Banquet Hall, in Pitakotte, last week, Ranawaka said that legal action could be instituted under the provisions of the Monetary Law Act of 1950 against those who bankrupted the country.

“In addition, there are provisions in the Fiscal Responsibility Management Act that could hold filing cases against the secretaries to the Ministry of Finance and Treasury Secretaries who had violated these laws and failed to execute their responsibilities. There are laws that put limits in obtaining loans. These officials cannot place the blame only on the politicians. They too should be brought before the law. They did the very same as Sakviti Ranasinghe who asked the people to deposit money, promising 25 percent interest. Sakviti could not pay and declared bankruptcy. He was put in jail for 22 years but those who ruined the national economy have not been punished yet. What our Central Bank and the governments had been doing was very similar to the conduct of Sakvithi.

“We took loans. We invested some in development and lost the rest due to waste and corruption,” Ranawaka said, noting that Sri Lanka had been obtaining loans since 1954. “There is nothing wrong with taking loans as long as they can be settled. We used to obtain loans on very low interests from other countries and international bodies such as JICA, KOICA and World Bank. After Sri Lanka was declared a middle income earning country, we could not obtain loans for such low interests. Thereafter we had to go to the market to obtain loans for higher interests such as 8-10 percent to settle in five to 10 years. We obtained them in the form of International sovereign bonds (ISBs) and Sri Lanka Development Bonds (SLDBs). The ISBs and SLDBs were around four percent of GDP. Interest for the loans taken from the World Bank and Asian Development Bank was around 0.1 to 0.2 percent. For example, the LRT project from the JICA loan was less than 0.1 percent. It had a grace period of 12 years and further 40 years to settle completely. Instead of such loans, we opted for commercial loans which doubled in 10 years if we do not pay. What we are facing today is a crisis because of commercial loans.”

Ranawaka said that the Gotabaya Rajapaksa government had made a large number of blunders, which had ruined the economy. “He gave massive tax reliefs. He wanted to remove the Super-gain tax introduced by the Yahapalana government. It was a 25 percent tax imposed on 62 leading companies, including those of Dhammika Perera, who earned more than one billion rupees in profits. That tax brought in 56 billion rupees to government coffers. These businessmen opposed the tax and promised that they could use that 56 billion rupees for more projects that could generate around Rs 250 billions, following liberal economic policies. The Rakapaksas, who came to power promising to promote socialist economic policies, removed that tax. They brought down VAT and removed limits of income tax by upping the threshold to three million rupees. The result was a drop of those who paid income taxes from 1.5 million to 400,000. Their tax revisions resulted in a drop of around 40 percent of national income. The rating institutes, including the Moody’s, Fitch Ratings, the S&P, dropped us from B grade to C grade. That was one of the main reasons for our inability to obtain loans.

“It is true that the Yahapalana government obtained 12 billion US dollar loans. The then Governor of the Central Bank, Indrajit Coomaraswamy, went to the international market, when the interests were very low, and obtained loans to raise around eight billion US Dollars. Of that amount, we left UDS 7.2 billion as reserves. This government spent USD 5.5 billion during the corona pandemic period to keep the rupee value against dollars. That attempt was not successful because in the open market a dollar was around Rs 330-380. They not only failed to achieve the desired results but also lost the reserves, too. Corresponding to these, remittances from foreign countries dropped from USD 600 million a month to USD 250 million as Lankan expats opted to Undiyal. In the meantime, the government kept on spending on highways, carpeting 100,000 roads, building 13,000 houses and developing 100 towns. To cover up the loss, they printed more money. Total the value of the rupees in circulation was only 1,500 billion. Now, after the cash printing spree, we have 4,500 billion rupees in circulation. That is the main reason for the increasing prices of goods and inflation.”

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Breakaway JVP faction decries Indo-Lanka MoUs as betrayal

Published

10 hours ago

2025/04/8

Sahan Weerasooriya

Pubudu

… alleges Kanchana’s Electricity Act exploited to facilitate ‘deal’ with India

The Frontline Socialist Party (FSP) has alleged that President Anura Kumara Dissanayake entered into seven MoUs/Agreements with India without consulting Parliament or the Cabinet of Ministers.

Accusing President Anura Kumara Dissanayake, who is the leader of the Janatha Vimukthi Peramuna (JVP), as well as the National People’s Power (NPP), of undermining Sri Lanka’s sovereignty, the breakaway JVP faction pointed out the signing of seven MoUs/Agreements had coincided with the 54th anniversary of the JVP’s first insurrection.

The top FSP spokesman and their Education Secretary, Pubudu Jayagoda, told a press conference, at their Nugegoda party office, that the JVP had completely betrayed those who sacrificed their lives during the 1971 and 1987-1990 insurrections. Having completely changed its policy towards India, the JVP was now down on its knees before India, Jayagoda said.

The dissident JVPer emphasised that such vital MoUs/Agreements couldn’t be finalised without proper consultations. Declaring that the MoUs/Agreements hadn’t been released yet, Jayagoda said that the FSP, in terms of the Right to Information Act, sought the copies of them as the public couldn’t be deprived of their right to know.

The section, now calling themselves FSP, split from the JVP in early 2012 after major differences among the top leadership over the direction of the party. Anura Kumara Dissanayake succeeded Somawansa Amarasinghe as the JVP leader in Dec. 2014.

Referring to the MoU, in respect of the implementation of HVDC interconnection for import/export of power, Jayagoda said that the NPP took advantage of the new Electricity Act that was enforced by the Wickremesinghe-Rajapaksa government in late June last year to pave the way for a deal with India. The JVP-led NPP that moved court against the then Power Minister Kanchana Wijesekera’s Bill, and voted against the Bill at the second reading, exploited the same to its advantage, Jayagoda charged.

The Sri Lanka Electricity Bill repealed the 1969 Ceylon Electricity Board (CEB) Act and subsequent laws regarding the electricity industry.

Comparing the MoU, signed in the presence of President Dissanayake and Premier Narendra Modi, Jayagoda said that both Nepal and Bangladesh had been trapped in similar agreements they signed earlier.

Jayagoda alleged that Nepal was in such a pathetic situation even if they could meet electricity requirement through hydro-power generation, the agreement with India compelled them to obtain power from India.

Jayagoda pointed out that the government now boasted of a proposed new120 MW solar power plant at Sampur to be implemented in two stages after having crippled domestic solar power generation capacity. The former JVPer said that the NPP government was bending backwards to appease India and pursuing an agenda inimical to Sri Lanka.

Jayagoda dealt with the MoU on cooperation in the field of sharing successful digital solutions implemented at population scale for digital transformation. The FSP spokesman said that the Indian-funded project to issue digital NIC would be disastrous as it would enable India to gather information.

Commenting on a MoU that covered the health sector, Jayagoda alleged that the government had agreed to share authority exercised by the National Medicine Regulatory Authority (NMRA) with India.

Jayagoda said that the MoU on defence cooperation undermined the country’s vital security interests and jeopardised relations with other countries.

The FSP said that political parties, represented in Parliament, were largely silent and seemed to be reluctant at least to express their views on the betrayal of the country.

By Shamindra Ferdinando

News

Adani’s Colombo Terminal commences operations

Published

10 hours ago

2025/04/8

Sahan Weerasooriya

A bulk carrier at the newly operational Colombo West terminal(pic courtesy Adani group)

Adani Ports and Special Economic Zone Ltd. (APSEZ), India’s largest integrated transport utility, has announced the commencement of operations at the Colombo West International Terminal (CWIT), located at the Port of Colombo, the company said in a statement issued simultaneously in Ahmedabad and Colombo yesterday (07)

Developed under a landmark public–private partnership, CWIT is operated by a consortium comprising India’s largest port operator Adani Ports & SEZ Ltd., leading Sri Lankan conglomerate John Keells Holdings PLC, and the Sri Lanka Ports Authority, under a 35-year Build, Operate, and Transfer (BOT) agreement.

The CWIT project represents a significant investment of USD 800 million and features a 1,400-metre long quay and 20-metre depth, enabling the terminal to handle approximately 3.2 million Twenty-foot Equivalent Units (TEUs) annually. It is the first deep-water terminal in Colombo to be fully automated, designed to enhance cargo handling capabilities, improve vessel turnaround times and elevate the port’s status as a key transshipment hub in South Asia.

Construction began in early 2022 and has since achieved rapid progress. With the installation of cutting-edge infrastructure now nearing completion, CWIT is poised to set new benchmarks in operational efficiency and reliability in regional maritime logistics.

“The commencement of operations at CWIT marks a momentous milestone in regional cooperation between India and Sri Lanka,” said Chairman of the Adani Group Gautam Adani. “Not only does this terminal represent the future of trade in the Indian Ocean but its opening is also a proud moment for Sri Lanka, placing it firmly on the global maritime map. The CWIT project will create thousands of direct and indirect jobs locally and unlock immense economic value for the island nation. It also stands as a shining example of the deep-rooted friendship and growing strategic ties between the two neighbours, and of what can be achieved through visionary public–private partnerships. Delivering this world-class facility in record time also reflects the Adani Group’s proven ability to efficiently execute large-scale critical infrastructure projects anywhere in the world.”

“We are proud to see the progress in the development of the West Container Terminal, a project that strengthens Sri Lanka’s position as a regional maritime hub,” said Chairperson, John Keells Group Krishan Balendra. “This project is one of the John Keells Group’s largest investments and is among the most significant private-sector investments in Sri Lanka. Together with the Sri Lanka Ports Authority and the Adani Group, we will elevate Colombo’s status as a leading transshipment hub. We are confident that the project will enhance global trade and connectivity in the region”, he said.

News

SLIC Life reports robust performance with Rs. 30.7 Billion PBT in 2024

Published

10 hours ago

2025/04/8

Sahan Weerasooriya

Nusith Kumaratunga (L) / Chandana L. Aluthgama (R)

Sri Lanka Insurance Corporation Life Limited (SLICLL) has concluded the year 2024 with outstanding financial performance, achieving a remarkable profit before taxation of Rs. 30.7 billion. The text of SLIC statement: “The company recorded a robust Gross Written Premium (GWP) of Rs. 26.3 billion, reflecting an impressive 25% growth. Remarkably, as of December 31, 2024, Sri Lanka Insurance Life marked a historic milestone with a New Business volume of Rs. 5.3 billion, recording a 48% growth, the highest in the company’s history.

Demonstrating its unwavering commitment to policyholders, Sri Lanka Insurance Life disbursed Rs. 13.7 billion in maturity settlements and claim payments in 2024, these figures reaffirm the company’s financial strength and dedication to fulfilling its obligations. Further cementing its position as a market leader, SLICLL continued to expand its asset base to an impressive Rs. 237 billion and grew its Life Fund to Rs. 213.2 billion. These achievements were realised amidst organizational transformations and challenging economic conditions. Additionally, the company recorded 319 MDRT qualifiers, the highest ever for SLIC Life.

Highlighting its prudent investment strategies and unwavering commitment to policyholders, Sri Lanka Insurance Life declared the largest Life Insurance bonus in the industry for 2023, amounting to Rs. 11.2 billion. Over the past two decades, the company has consistently delivered industry-leading bonus payouts, with cumulative declarations exceeding Rs. 104 billion. Continuing this legacy, Sri Lanka Insurance Life is set to declare its highest ever bonus for 2024, with official communication to be released in the near future.

Group Chief Executive Officer of Sri Lanka Insurance, Mr. Chandana L. Aluthgama, stated, “Our exceptional financial performance is a testament to the dedication and resilience of our team, who have navigated challenges with unwavering commitment. Despite economic fluctuations and internal transformations, our strategic focus has reinforced our market leadership. As we step into the future, we remain committed to innovation, customer trust, and industry leadership.”

Chairman of Sri Lanka Insurance, Mr. Nusith Kumaratunga, emphasized, “Sri Lanka Insurance Life has proven its strength and stability, delivering sustainable growth while reinforcing its role in the nation’s economic progress. Our vision extends beyond business success, we aim to contribute to national development by strengthening the economy and reducing dependency of the people on state support.”

Beyond financial success, Sri Lanka Insurance Life continued to earn industry recognition in 2024. The company was named ‘The Most Loved Life Insurance Brand’ by LMD for the seventh consecutive year and was ranked among the ‘Top 100 Most Valuable Brands’ in Sri Lanka by LMD Brand Finance. Additionally, SLIC Life secured top honors at the ‘Best Management Practices Company Awards 2024,’ ranking among the top ten companies and winning the ‘Insurance – Public Sector Company’ category.

Committed to international standards and operational excellence, Sri Lanka Insurance Life maintains ISO 9001:2015, ISO/IEC 27001:2013, and ISO 14064-1:2018 certifications. The company also continues its social impact initiatives, including the free Life Insurance cover gifted to parents of newborns on World Children’s Day for the third consecutive year, supported 1100 families in flood affected areas, providing emergency assistance to pilgrims traveling to Anuradhapura for Poson Poya and the awarding of 370 Suba Pathum scholarships to outstanding students in national examinations.

Looking ahead, Sri Lanka Insurance Life remains focused on driving innovation, enhancing customer confidence, and making meaningful contributions to society. With a solid foundation and a clear vision, the company is poised to maintain its legacy of excellence and leadership in the insurance industry.