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RW: Final settlement with Tamils in a few months

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Sri Lanka open to all navies A final settlement with the Tamils and the Northern population of the country would be reached within the next few months, President Ranil Wickremesinghe said at the first ever graduation ceremony of the National Defence College in Colombo on Wednesday night.The President added that he was currently having discussions with the Tamil MPs to achieve that goal.Wickremesinghe also said Sri Lanka was open to the navies of all countries.

“If navies want to come, we have no problem. They helped in the anti-piracy operations. But we don’t want a level of rivalry which will affect the security and the peace of our area. Whatever it be that we will not join any big power or take sides, we will stay out of it. And that’s why we want to ensure that the big powers and the rivalry don”t need to certainly lead to conflict in the Indian Ocean. That’s one thing we can’t afford.”

President Wickremesinghe also noted that the geopolitics of the Indian Ocean had made Sri Lanka the “punching bag.” He said there were around 17 ports operated by the Chinese in the Indian Ocean and all of them were commercial ports. He stressed that Hambantota Port was also a commercial one.

The President said in the port of Darwin, Australia the Chinese ports are operating side by side with a port that Australian and the US forces used for training. “We don’t have that. We don’t allow anyone to come and train here, but we do have our southern command of the navy. We have a divisional headquarters of the army and we have a detachment of the Air Force. But none of them are involved. They only ensure that this is a commercial port and no less.”

Emphasising that Hambantota was a commercial port, and a reflection of Sri Lanka’s strategic importance, Wickremesinghe said many people had come to absurd conclusions. The President said he hoped that the next agreement Sri Lanka has with China would not cause such speculation and it was only about debt reduction for Sri Lanka. He added that the Indian Ocean region should be opened to all to ensure freedom of navigation for commercial viability, Wickremesinghe added that Sri Lanka would not join any military alliances and did not want the problems of the Pacific coming into the Indian Ocean. He urged the countries in the Indian Ocean region to come together to maintain stability of the region.

“It is important for commerce to carry on. We have to remember that bulk of the petroleum supply and energy supply to the world goes through the Indian Ocean. A large amount of shipping goes through the Indian Ocean. We don’t want this to be an area of conflict and an area of war.”

President Wickremesinghe highlighted the importance of safeguarding the security of India and other neighbouring countries. “When it comes to the security of Sri Lanka, we are of the view that in looking after the security of Sri Lanka, we must also ensure that nothing adverse happens to the security of India. That we have been committed to, and we will go ahead with it. There will be no movement out of it. That’s why we work with India on the Colombo conclave, on the trilateral security arrangements and many other fields, especially outside the military field of piracy, of human trafficking, of drugs. All those are useful ways in which we cooperate with India and the other island states. Then we also value our friendship with Maldives, those small islands, and we know how important the Maldives is.”

The President also said that Sri Lanka should not allow any other country to use it to attack third parties.



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State FM calls for report from IR, admits difficulty in punishing racketeers

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Sugar tax scam: National Audit Office estimates Rs 16.7 bn revenue loss

By Shamindra Ferdinando

State Minister of Finance, Economic Stabilisation and National Policies Ranjith Siyambalapitiya has asked for a report from the Inland revenue Department on the income tax returns of sugar importers who have allegedly benefited from an unprecedented reduction of duty on a kilo of sugar on 13 Oct., 2020.

The gazette pertaining to the duty reduction (Special Commodity Levy) from Rs 50 per kilo to 25 cents was issued by the Finance Ministry during the tenure of the then Prime Minister Mahinda Rajapaksa, who also served as the Finance Minister. S. R. Attygalle served as the Finance Secretary at the time.

State Minister Siyambalapitiya revealed his decision to call for a report during a visit to the Inland Revenue head office on Thursday (22).The Ministry spokesperson quoted Minister Siyambalapitiya as having told Inland Revenue Department officials that losses caused by the duty reduction couldn’t be recovered by re-imposing the duty even if a fraud had been perpetrated in the process. The State Minister was further quoted as having said that it wouldn’t be an easy task to punish those responsible for

the duty reduction. Those responsible could claim that their intention was to bring down the price of sugar, the SLFPer has said.The State Minister has intervened in the sugar tax scam in the wake of the National Audit Office recommending the recovery of revenue losses from those sugar importers. The National Audit Office has conducted a special audit to examine whether consumers benefited at all as a result of the sharp reduction of sugar tax.

The special audit revealed that within four months of reducing the tax (14th October 2020 to 8th February 2021) the cash-strapped government was deprived of tax revenue of a whopping Rs. 16.763 Billion.The audit investigation named one of the main sugar importers recorded a massive profit of some 1,222%.

The report underscored that the tax reduction did not provide relief to the people, but greatly benefited the importers and traders.The former Chairman of the Committee on Public Finance SLPP MP Anura Priyadarshana Yapa declared that consumers didn’t benefit from the duty reduction.

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Combination of ill-timed decisions prevented Lanka recover from pandemic shock

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The country has lost several hundred thousand jobs to Covid-19. The impact of the agrochemical ban on agriculture, the mismanagement of the exchange rate, a highly accommodative monetary policy, and the use of foreign exchange reserves for debt repayment thwarted the country’s ability to recover from the initial shock of COVID-19, an ILO study titled, ‘The labour market implications of Sri Lanka’s multiple crises,‘ has revealed.

“These policy decisions generated multiple crises which impacted on businesses, workers, and their families, manifesting in shortages of essential consumer goods including food, fuel, power, raw materials, and capital equipment on the one hand, and the disruption of key public services, such as education and health, on the other. The fiscal bind and looming debt crisis have also left Sri Lanka very little room to manoeuvre. The economic crises have, in turn, generated political instability and further constrained timely decision-making about how to deal with the crisis,” the ILO report said.

The multiple crises have intensified long-standing worrisome features of the labour market: they have expanded unemployment, widened gender gaps in labour force participation, and given rise to job insecurity, uncertainty, and hardship, it said.

“Sri Lanka lost more than 200,000 jobs to the pandemic between the fourth quarter 2019 and the second quarter 2021. The employment share of the informal sector increased because formal sector employment contracted more sharply. Although there was some recovery, during the second half of 2021, extensive job losse, among employers, augured ill for the vigorous regeneration of jobs,” the study reveals.

The report added that the pandemic also impacted the skills development sector. Efforts to provide education and training online were constrained, mainly due to problems of infrastructure access, particularly outside of the Western Province. Enrolment and completion of TVET courses in 2020, relative to 2019, declined by 50 and 57 percent respectively. However, the imposition of power cuts, in 2022, are likely to have disrupted even these limited measures.

“The pandemic also saw the emergence of the new poor — those who fell into poverty because of the pandemic – among the more educated and employed in industry and service sectors, particularly in urban areas and Western Province, the latter which accounted for the largest share of the new poor. These negative developments would have worsened in 2022 as the economic crises intensified,” it said.

Sri Lanka is currently in a full-blown debt and balance-of-payments crisis, leading to massive shortages of essentials and severe disruption to economic activity. As the crisis continues to deteriorate and is likely to lead to a deep impact on the labour market, which will require careful monitoring and analysis over the months to come, the ILO said. The severity of the crisis means that policy-makers need to grasp the nettle of structural reforms needed for recovery and job-rich growth, which will require carefully balancing macroeconomic stabilization with longer-term goals of creating decent, sustainable, and productive employment. The report suggests eight areas of policy intervention for the short, medium and long term.

They are; addressing current macroeconomic crisis through fiscal consolidation and debt restructuring, plus improved fiscal space, restoring investor confidence, reformulating investment, industry, and trade policies to support export-led growth, technological transformation, productive efficiency and job creation, especially for SMEs, increasing R&D and infrastructure investments with a clear focus on 3IR and 4IR technologies, promoting demand-driven skills development and adjustment to a post-COVID-19 economy, including remedial education/training, creating a social dialogue and legislative reform to support flexible arrangements while protecting workers, promoting policies that foster women’s entry into the labour market and support other hard-hit groups, and expanding access to adequate social protection to workers and families (including institutional reforms).

The report also said that Sri Lanka needs to work on improving learning outcomes. Even the TVET sector performs no better than the general education system, the ILO said. According to a 2018 ADB study, a sizable proportion of TVET graduates leave training programmes, without the skills that employers require. Tracer studies on the employability of TVET graduates reveal a high rate of unemployment among TVET graduates who had been trained for employment in even the fast-growing ICT, construction, tourism, and light engineering subsectors.

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Royal Park murder convict barred from leaving country

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The Supreme Court, yesterday, directed the Controller General of Immigration and Emigration to prevent Don Shamantha Jude Anthony Jayamaha, who was convicted for the murder of a person at Royal Park Apartment Complex, in 2005, from leaving the country, without Court permission.The Court made this decision when taking a case filed by Women and Media Collective seeking the suspension of the Presidential Pardon, granted by former President Maithripala Sirisena to Jayamaha.

The Court also granted leave to proceed with this petition for violating Article 12(1) of the constitution.A three-judge-bench comprising Justices Priyantha Jayawardena, Shiran Goonaratne and Mahinda Samayawardena fixed the petition for argument on 30 March 2023. Previously the Court allowed the petitioners to add former President Maithripala Sirisena as a respondent since he no longer has presidential immunity.

Women and Media Collective had named Attorney General, Jude Anthony Jayamaha, Commissioner General of Prisons, Controller General of Immigration and Emigration, Inspector General of Police, Justice Minister, President of Bar Association of Sri Lanka, as respondents. The petitioners also want the Court to issue guidelines governing the process of granting Presidential pardons.

Jayamaha was indicted at the High Court by Attorney-General for committing the murder of Yvonne Jonsson, on or about 01 July 2005. On 28 July, 2006, the High Court sentenced Jayamaha for 12 years of rigorous imprisonment, and a fine of Rs. 300,000. The Attorney General then filed a case in the Court of Appeal stating that the punishment was inadequate. The Court of Appeal sentenced Jayamaha to death. On 9 November, 2019, Jayamaha was granted a presidential pardon by Maithripala Sirisena during his last week in office.

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