The main objective of the Department of the Registrar of Companies is the efficient and effective implementation, administration and enforcement of several legislative enactments assigned to it, mainly the provisions of the Companies Act, according to its website.
A grand pronouncement, indeed!.
In fact, it serve as a ‘filing cabinet’ for the annual returns of various companies, which are duly filed each year, thereby, keeping the company secretaries, (invariably ‘another company’), “in business.
But does the Registrar actually enforce anything, or protect the rights of the minority shareholders of PUBLIC companies (let alone ‘Private’ ones) , registered under this Act?
A hotels company, of which I have been a minority shareholder has suddenly stopped providing either the annual report or accounts since 2017 or thereabouts. More disturbingly, the last received accounts indicated a prima facie irregular issue of company shares, apparently in settlement of a loan. All complaints (and requests for enquiry) made by registered post to the Registrar of Companies and/or the Company Secretaries (asking for the latest accounts) have gone unheeded.
As far back as the annual report 2012, (page 8), the auditors stated, “We are unable to satisfy ourselves as to the recoverability of investment Rs 33,810, 000 (33 million) and CURRENT ACCOUNT Receivable balance 307,329,335 (307 million)”. Later, accounts continued these trends.
Although the Registrar receives both the reports and shareholder complaints, no action is taken.
Various interested parties are encouraging the general public to ‘invest’ their savings in the local stock market and in companies in which they have controlling interests. Let the public beware!
The importation of chemical fertilizers, pesticides and herbicides was banned by a Cabinet Memorandum, dated April 27, 2021, to promote the use of organic fertilizers and natural pesticides. As a result, inorganic fertilisers such as urea, Triple superphosphate, Muriate of Potash and other agrochemicals (insecticides, fungicides etc.) became scarce. Agriculture Ministry in the meantime promoted manufacture of organic fertilisers (OF) but they were unable to get sufficient amounts of organic fertilisers manufactured. Most of what was available were of low quality with high C/N ratios. Agric. The Ministry is yet to produce natural insecticides, fungicides, etc. Thousands of farmers, all over the country, started to protest demanding that inorganic fertilisers and appropriate pesticides are made available, because they knew that these agrochemicals are necessary to get better yields from the crops they cultivate. The Soil Science Society of Sri Lanka, representing mostly the Soil Scientists and Agronomists of Sri Lanka, and the Sri Lanka Agricultural Economics Association, the professional body representing the agricultural economists of Sri Lanka predicted massive economic losses due to potential yield losses, with the implementation of the import ban on fertilisers and pesticides
In spite of all these protests, the Ministry of Agriculture (MOA) continued to ban import of inorganic fertilisers and pesticides, This caused immense economic and social problems to the people in general and to the farmers in particular. Farmers who cultivated Paddy in the current Maha complain of a reduction in the yields, and those who cultivated vegetables and other crops had to bear up a substantial decrease in quantity and quality of their produce. Production of maize decreased, resulting in a drop in poultry feed.
Reduction in local rice production made the government importing large quantities of rice from China and Burma. Food prices have increased causing thousands of people mainly the poor, going hungry resulting, health and social problems. Incomes of nearly two million farmers got reduced which affected their buying capacity resulting in numerous undesirable effects such as increasing unemployment, poverty and related issues. Tea small holders complained of reduction in quantity and quality of tea affecting their income, and also a decline on foreign exchange earnings which those in the Finance Ministry, Central Bank and other relevant institutions are frantically searching. All these are the result of the ban of inorganic fertilizers and pesticides, a faulty decision.
In August, the Cabinet removed the ban probably realising the utter foolishness of the decision to ban import of inorganic fertilisers and pesticides. However, it is too late as it takes time to import fertilisers and other agrochemical which were in short supply due to the ban.
The main reason given for banning importation of inorganic fertilisers was that it caused chronic kidney disease with unknown aetiology (CKDU). Several research studies have been conducted since the year 2000, when it was reported to occur in some parts of the country. The findings of these studies do not indicate that there is any relationship between CKDU and fertilisers. CKDU has not been reported in many countries such as China (393 kg/ha) India (175 kg/ha) and United Kingdom (245 kg/ha) where the amount of fertilisers used per hectare is much larger than that of Sri Lanka (138 kg/ha). Note- the fertiliser consumption data given are for 2018 and are based on values given by Food and Agriculture Organization.
The growth rate of Sri Lanka has declined after 2015 . It dwindled to 4.5% in 2016 and 3.1% in 2017 and in 2020 it was -3.6 %. The Trade Deficit ( the difference between exports and imports- TD) shows a decrease but at present it stands at 6.1 US$ billion. Exchange rate continued to increase from Rs. 111 to a US $ in 2010 to Rs, 186 in 2020. Currently it is around Rs. 200. According to Central Bank, External Debt in Sri Lanka increased to 51117.43 USD Million in the third quarter of 2021. These figures indicate that Sri Lanka is heading towards an unprecedented economic crisis. Hence, the government need to implement appropriate strategies to increase exports and reduce imports.
Sri Lanka annually imports food worth Rs. 300 billion. Most of the food imported such as sugar, milk food, lentils, onion, maize, etc., involving around Rs. 200 billion can be locally produced, thereby reducing expenditure on food imports. In view of the current shortage of foreign exchange, it has become extremely important to promote the production of food locally which hitherto have been imported. The plantation sector, which includes tea, rubber, coconut, cashew, sugarcane and minor exports crops such as cinnamon, cardamom, cocoa ,plays a very important role in the economy of the country earning a substantial amount of foreign exchange, Hence, it is important to implement strategies to increase the productivity of the food crop and plantation crops sectors. Inorganic fertilisers, synthetic pesticides and herbicides play a very important role in this regard.
However, the Government is emphasizing that organic fertilisers (OF) are used in the coming yala season as well . Those in the government who made this faulty decision need to realise that OF can never replace inorganic fertilisers and that it can only be supplementary. They need to give serious consideration to the bitter experience of the farmers who applied OF to their crops during the current Maha. The Government needs to understand this fact and reconsider this faulty decision if they want to increase local food and export crop production.
In the year 2022, there will be a severe shortage of food negatively affecting food security, unless the government implements a realistic and effective programme from the beginning of 2022 to solve this issue. Implementation of foolish decisions such as to replace inorganic fertilisers with organic fertilisers, as done in 2021 is not going to solve this problem. Among the 17, he Sustainable Development Goals (SDGs) adopted by the United Nations in 2015, several are related to increase crop production. The Sustainable Development Council of Sri Lanka has a responsibility for coordination, facilitation, monitoring, evaluation and reporting on the implementation of strategies related to development of the agriculture sector in Sri Lanka.
As indicated by Edgar Perera, a former Director of the Dept. of Agricultural Development (Ref. The Island of 17 Jan, 2022) the most appropriate thing to be done is to use OF as a soil re-conditioner along with chemical fertilisers, which will give the much-needed plant nutrients in adequate quantities, to achieve the required yield levels which will be sufficient to meet the national targets.
Dr. C. S. Weeraratna
Have pity on Afghans
Is there no end to the torment inflicted on the ordinary people of Afghanistan, by the United States?
Having being defeated militarily, and decamping ingloriously within 24 hours, like thieves in the night, the USA now inflicts starvation and destruction on Afghanistan from a “safe distance”.! Money that rightly belonging to the Afghan State is being withheld by the American dominant Financial system. Let this be a lesson to us.
A report in The Island of 17 January revealed that Afghan families were selling children and their organs in order to survive.
After all, what crime did the Afghans commit in resisting an invading foreign power? Sri Lanka should seek ways of offering direct Aid at least in small ways, to Afghanistan, whether the Americans approve or not.
Dinesh Gunawardena’s call
The call by Dinesh Gunawardena, son of that famous Left Leader Philip Gunawardena, who stood steadfast to protect his ideals for the sake of the poor downtrodden, has said ‘stakeholders must protect the government’.
We elect our representatives to Parliament, based on promises they make during election times, and if the government fails or introduces laws not announced at election meetings, then the responsibility of our representatives is to criticise such action; if the government does not heed their voice, our representatives should be prepared to cross over or resign.
The duty of an MP is to stand by the voter, and not the party he belongs to or is aligned to. Were the voters informed that dual citizens would be elected or appointed to Parliament?
Let me conclude by reproducing the last verse in an apt poem by Sir Walter Scott titled:
“LAY OF THE LAST MINSTREL [MY NATIVE LAND]”
Despite those titles, and pelf
The wretch, concentered all in self
Living shall forfeit fair renown
And doubly, dying shall go down
To the vile dust, from whence he sprung
UNWEPT, UNHONOURED AND UNSUNG”
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