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Reserves fall to lowest since 2009, rupee strengthening to be short-lived: report

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by Sanath Nanayakkare

Sri Lanka’s Foreign reserves had dropped to USD 4.1bn in March 2021, the lowest since August 2009, on the back of over US$ 4bn outstanding debt payment during April-December 2021 period, a report issued by First Capital Research yesterday said.

According to the report, rupee appreciation is likely to be short-lived considering Sri Lanka’s depleting foreign reserve position, high foreign currency debt repayment requirement and limited funding sources available in the market are expected to further increase depreciation pressure on the currency during 2Q and 3Q.

“We maintain our exchange rate target for 1H2021 at Rs. 196-202 with 2021 year-end target at Rs. 205-215 as mentioned in our ‘Investment Strategy 2021 – January 2021,” the report recalls.

“Sri Lankan rupee appreciated 5% against the US dollar over the last 2 market days reversing the continuous accelerated depreciation witnessed in January-April 2021. On 12th April, Sri Lankan rupee recorded a historical low of Rs. 201:1 US$. Ministry of Finance (MoF) reported on the same day that the government of Sri Lanka entered into a loan agreement with the China Development Bank (CDB) for US$ 500mn and MoF expected the funds to be disbursed during the same week. Following the announcement, the market registered a steep appreciation with mid-rate recording at Rs. 190.9 on April 19,” it says.

The total foreign debt repayment (capital and interest) for 2021 is US$ 6 bn, according to the report.

Meanwhile FC Research believes that the temporary appreciation in USD-LKR, may adversely impact earnings of export companies such as Hayleys, Haycarb, Dipped Products, MGT Knitting Mills, Teejay Lanka, Expolanka Holdings etc. in the short term.

“However, considering the potential future currency pressure, we expect an overall depreciation of approximately 12% for the rupee providing a significant gain for companies with foreign currency revenue”, FC research predicts.



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AG says no legal impediment to Bathiudeen attending Parliament

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Public Security Minister: Those detained under PTA shouldn’t be allowed in

By Shamindra Ferdinando

Attorney General Dappula de Livera, PC, says there is no legal impediment to Opposition MP Rishad Bathiudeen attending Parliament while being detained in terms of the Prevention of Terrorism Act (PTA).

The CID arrested the leader of the All Ceylon Makkal Congress (ACMC) in the early hours of April 24 for aiding and abetting the 2019 Easter Sunday suicide bombers.

Multiple blasts in different locations killed 270 people and wounded about 500.

The AG set the record straight in the wake of the CID failing to arrange for MP Bathiudeen to attend Parliament on May 4 and 5.

The Island learns that Police Headquarters recently consulted the AG as regards the legality of the Vanni District SJB MP attending parliamentary sessions and the SJB, on his behalf, requested the Speaker to facilitate the arrangements.

The ACMC contested the last general election on the SJB ticket. Its parliamentary group comprises four, including Bathiudeen.

The police sought the AG’s advice after having received a missive from Serjeant at arms Narendra Fernando in that regard. The AG has advised the police that MP Bathiudeen could attend parliamentary sessions.

However, Public Security Minister Rear Admiral Sarath Weerasekera has advised the police against the ACMC leader attending Parliament. The Minister has issued instructions in this regard having requested the Speaker Mahinda Yapa Abeywardena to prevent those detained under the PTA from attending parliament.

MP Bathiudeen has been detained for a period of 90 days pending investigations. His brother Riyajj too has been detained under PTA for 90 days.

 Minister Weerasekera, in Parliament yesterday (5) defended his decision to prevent MP Bathiudeen from attending parliament. Dismissing concerns raised by SJB MP Field Marshal Sarath Fonseka and TNA MP M.A. Sumanthiran about the ACMC leader being deprived of his right to attend parliament sessions, Minister Weerasekera emphasized that he was responsible for public security.

Minister Weerasekera reminded Speaker Abeywardena that he had requested him not to allow anyone detained under PTA to attend parliament pending conclusion of investigations.

Weerasekera said that the CID wouldn’t have detained the MP concerned without valid reasons.

Perhaps, Field Marshal Fonseka had no concerns for public security, the former Navy Chief of Staff said, emphasising that the government wouldn’t conduct investigations the way the former Army Commander and the TNA spokesman desired.

Bathiudeen earlier served in the Cabinets of President Mahinda Rajapaksa (2010-2014) and President Maithripala Sirisena (2015-2019). The ACMC switched its allegiance to SJB at the 2020 August parliamentary election after having backed Sajith Premadasa’s candidature at the 2019 presidential.

Bathiudeens’ lawyer Rushdhie Habeeb told The Island that the decision to prevent MP Bathiudeen from attending parliament was political. Habeeb said that the issue at hand would be raised vigorously, both here and abroad, and a media briefing would be called soon to explain the situation.

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MONLAR draws attention to ticking COVID time bomb in plantations

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By Rathindra Kuruwita

A large number of estate workers had been diagnosed with COVID-19, and given the generally congested living environment and lack of health facilities on plantations, the entire estate sector was a ticking time bomb, Moderator of the Movement for Land and Agricultural Reform (MONLAR) Chinthaka Rajapakshe said yesterday.

Rajapakshe told The Island  that the latest outbreak on the estates had occurred after the return of some persons from Colombo during the Sinhala and Tamil New Year.

“We had warned that this would happen. People kept on returning home although the preparedness of the plantation economy to face a COVID-19 outbreak was non-existent.”

 “If one person gets it, the entire line will get it, and therefore urgent steps should be taken to minimise COVID-19 spread,” Rajapakshe said, adding that such an eventuality would not only destroy lives but also cripple the plantation sector, causing an enormous loss to the state coffers.

 

 

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Clandestine dealings of fishers will precipitate spread of deadly Indian variant here – Expert

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By Rathindra Kuruwita

There was a risk of the deadly Indian COVID-19 variant spreading to Sri Lanka as well, Chief Epidemiologist of the Ministry of Health, Dr. Sudath Samaraweera told the media yesterday in Colombo.

Dr. Samaraweera said that Sri Lankan fishermen continued to interact with their Indian counterparts in mid-sea and therefore it was only a matter of time before the Indian variant entered Sri Lanka.

“We must be extremely vigilant. We have seen the devastation caused by this variant in India. These mid-sea interactions by the fishing community must be stopped.”

Dr. Samaraweera added that although the Dambulla Economic Centre

had been reopened for business yesterday morning, health officials had been compelled to close five shops as their owners violated the Covid-19 protocol.    

“This is a commercial hub where people from all parts of the country converge. So, if there are COVID-19 cases here, then it will spread across the country. Therefore, people have to act carefully and responsibly.”

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