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Sri Lanka big business reaps huge profits during pandemic

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By Saman Gunadasa

Sri Lanka’s nine top companies amassed 364 billion rupees ($US1.8 billion) in earnings between April and June, collectively pocketing 21 billion rupees profit in the first quarter of their financial year.

This amount is only a fraction of the wealth secured by the super-rich and also seen in rising profits for the banks and other big companies so far this year.

In the first three months of 2021, listed companies on the Colombo Stock Market recorded 189 percent growth increase compared to the same period last year, with the largest earnings made by companies involved in finance, exports, logistics, liquor, health and stock trading.

Companies allowed to keep operating during the COVID-19 pandemic were some of the highest profit makers, in stark contrast to the devastating economic impact on workers, small entrepreneurs, self-employed and the poor who suffered sharp losses of income and jobs. As of yesterday, COVID-19 has taken the lives of more than 9,000 people in Sri Lanka with total infections climbing to over 425,000.

Among the top nine earners was Expolanka, a major logistics company with branches in 20 countries. It had a turnover of 95 billion rupees and 6.3 billion rupees net profit in the quarter.

In second place was LOLC, a leader in leasing, hire purchase, insurance and other financial activities. It earned 55 billion rupees with a 4 billion rupees net profit. Last year, LOLC pocketed 53 billion rupees after tax profit, the highest ever recorded by a Sri Lankan company. Its owner, Ishara Nanayakkara is one of the country’s top billionaires.

Hayleys and Vallibel One, a finance house owned by Dammika Perera, Sri Lanka’s richest individual, earned almost 90 billion rupees with combined net profit of 6.4 billion rupees in the April to June quarter.

The Hayleys conglomerate is involved in import-export industries related to rubber production and plantations with over 30,000 employees. Last year it generated 242 billion rupees in revenue and 14 billion rupees net profit, the highest ever during the company’s 143 years of existence.

John Keells, another top business firm, earned 38 billion rupees with 1.2 billion rupees net profit in the quarter. Tourism was the only component of the company impacted by the pandemic.

In addition to the top nine conglomerates, NDB, the country’s fourth largest private commercial bank, reported a net interest income of 5 billion rupees—a 15 percent increase from April to June compared to the same time last year. Sampath Bank reported a 34 percent rise in net interest income to 10.8 billion rupees in the same quarter.

Billionaire Dammika Perera was featured in the media last week, arrogantly declaring that Sri Lanka should not be locked down under any circumstances.

 “A government cannot run the country in a complete lockdown, can it?” he said, adding that without “dollar income via exports,” it could not import petrol, medicine, milk powder and other necessities. Perera said nothing about the massive export profits being amassed by his companies and other businesses.

Over the past month Sri Lankan President Gotabhaya Rajapakse, speaking on behalf of big business, opposed any lockdown amid rising COVID-19 infections and deaths and urgent calls of independent health experts for stringent health measures.

Limited lockdown restrictions reluctantly imposed on August 20 by Rajapakse, still allow big business to keep operating as essential services. Health experts have voiced their concerns about effectiveness of the government’s restrictions.

Last year President Rajapakse ordered the Central Bank to provide massive concessionary funds—a total of 230 billion rupees—to big businesses. Other financial facilities and more tax concessions were also handed out. Most corporate taxes, for example, were reduced to 14 and 18 percent, the lowest rates in South Asia.

Last December, Rajapakse told a Ceylon Chamber of Commerce conference that investors should “take up the opportunities” provided by the coronavirus pandemic.

Early last year the government, backed by the trade unions, gave businesses the right to retrench workers arbitrarily, ignoring the country’s existing, but limited, labour laws. Under the banner of dealing with the pandemic, employers were also allowed to impose wage cuts, increase workloads and slash working conditions.

Announcing his limited lockdown measures on August 20, Rajapakse called on the population to be prepared to make “more sacrifices.” Government ministers are already campaigning for the salaries of about 1.4 million of state sector workers to be cut by 50 percent.

Last week, the cabinet of ministers announced that they would donate a month’s salary to the COVID-19 Health Care and Security Fund. The “donation,” which has been embraced by government and opposition Samagi Jana Balavegaya MPs, is a media stunt by the ministers who receive more in perks than their monthly salaries. It is a public relations exercise in preparation for the slashing of state employees’ salaries.

The government has said it would provide 2,000 rupees for low-income families to cover the two-week lockdown. This is not even enough for one meal a day during the lockdown.

While big business is thriving, working people are being impacted by increasing prices for essential items. Inflation rates have been climbing since January and, on a year-on-year basis, were 6.1 percent in June and 6.8 percent in July. Food inflation was 11 percent in July, with non-food items 3.2 percent.

The Rajapakse government, which confronts falling foreign reserves—it only has enough for two months of imports—has banned the import of many essential food items and other goods.

Sri Lanka, according to a recent global survey by the Institute of Development Studies , is fourth in a list of countries—after Syria, Nigeria and Ethiopia—where basic food is the least affordable.

Last week, Health minister, Keheliya Rambukwella issued a gazette announcing a maximum price for 60 essential medical drugs. Ceylon Private Pharmacy Owners ’ Association president Chandika Gankanda, however, told the media that the gazette was used to increase the price of many drugs by 9 percent. The drugs listed in the gazette include painkillers given for those infected with COVID-19 or suffering with diabetes and high blood pressure.

Mired in huge foreign debts and falling export income, the Rajapakse regime has turned to the International Monetary Fund (IMF) and received a loan of about $800 million under the bank’s $650 billion program for member states.

Ajit Nivard Cabraal, the state minister for money and capital markets, jubilantly declared last week, that “the inflows we predicted are coming one by one,” adding that a $300 million loan was also being provided by China.

The IMF has insisted that any country receiving its loans must implement “restructuring programs” to overcome its economic difficulties. In other words, these loans will be paid for by even more ruthless austerity attacks on the working class and the poor by the Rajapakse government.



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New education reforms are not only to align education with job market demands but also to cultivate skilled youth who can contribute to the economy and provide leadership to society -Prime Minister

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As part of the series of programmes conducted for schoolchildren by the Presidential Secretariat, the Ministry of Education and the Sri Lanka Parliament Department of Communication, a special Student Parliament session for Visakha Vidyalaya, Colombo, was held on Tuesday (25) at the Old Parliament Chamber of the Presidential Secretariat. The event was conducted under the patronage of Prime Minister Dr. Harini Amarasuriya.

During the session, the student parliament members of Visakha Vidyalaya had the opportunity to gain insights into the conceptual and practical significance of the “Clean Sri Lanka” initiative.

A special commemorative edition of the ‘Vision’ magazine, which focuses on the student Parliament initiative, was presented to the Prime Minister by Nadeeka Dangolla, Assistant Director of Parliamentary Affairs and Executive Functions.

Furthermore, the Principal of Visakha Vidyalaya, Mrs. Manomi Seneviratne, presented a special commemorative token to the Prime Minister.

Addressing the gathering, Prime Minister Dr. Harini Amarasuriya highlighted that the government’s commitment to implementing new educational reforms aimed at nurturing a generation capable of seizing economic opportunities.

The Prime Minister further stated that the government aims to prepare Sri Lankan children to acquire global knowledge while fostering a self-reliant and empowered future generation.

The Prime Minister stated that the objective of the new education reforms are not only to align education with job market demands but also to cultivate skilled youth who can contribute to the economy and provide leadership to society.

Furthermore, she underscored the government’s commitment to addressing resource disparities among schools and emphasized the significance of civic responsibility in this endeavour.

Speaker Dr. Jagath Wickramaratne:
‘Leadership must be devoid of selfishness. Selfless leaders guide both the nation and its people towards a better direction. To achieve this, skills must be enhanced. We can learn about talented leaders from both Sri Lankan history and global history. We should study as children how Chandashoka transformed into Dharmashoka and how Hitler’s regime brought devastation to the world. A nation achieves stability when leaders who prioritize minimal personal consumption and demonstrate a true dedication to their nation arise. Therefore, we must strive to cultivate leaders who can face challenges and prioritize national interests. By fostering selflessness, we can ensure a prosperous future for our people.’

Senior Presidential Media Advisor Mr. Chandana Sooriyabandara:
‘The students gathered here today are not just future leaders; they are leaders already. Leadership knows no age. Anyone who stands for a group could be consider as a leader. Those who exercise the power of the group are considered leaders. Throughout Sri Lankan history, individuals who contributed to the country through their words and actions have played leadership roles. Therefore, logical reasoning should lead the process of making decisions. Both leaders and citizens share the duty to act rationally. You all have a duty to shape a prosperous nation through logical thinking, and this obligation lies with every young person.’

The event was also attended by Deputy Speaker Dr. Rizvie Salih, Deputy Chairperson of Committees Hemali Weerasekara, Secretary-General of the Parliament Kushani Rohanadeera, Senior Additional Secretary to the President K.M.N. Kumarasinghe, Director-General of Legal Affairs to the President J.M. Wijebandara, Principal of Visakha Vidyalaya Manomi Seneviratne, along with members of the teaching staff and a group of students.

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UK sanctions: MR urges govt. to stand by military

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Former President Mahinda Rajapaksa has urged the NPP government to stand by Sri Lanka’s war-winning military. The following is the text of the statement issued by the former President: “The United Kingdom govt. has announced sanctions, including travel bans and asset freezes, against Sri Lanka’s former Chief of Defence Staff Shavendra Silva, former Navy Commander Wasantha Karannagoda and former Army Commander Jagath Jayasuriya over unproven allegations of human rights violations during the war with the LTTE. It was I, as the Executive President of Sri Lanka, who took the decision to militarily defeat the LTTE and the armed forces implemented that decision on the ground.

Despite the 2002 ceasefire agreement, the LTTE had carried out 363 killings during the ceasefire between February 2002 and the end of September 2005. LTTE attacks intensified in the first few weeks and months after I was elected President in November 2005. Among the most serious such incidents were claymore mine attacks on 4 and 6 December 2005 in Jaffna that killed 13 soldiers, a suicide attack on a naval craft on 5 January 2006 that killed 15 naval personnel, and the suicide attack on the Army Commander inside Army Headquarters in April 2006.

Despite all that, my government held two rounds of peace talks in January and June 2006, in Geneva and Oslo, which were unilaterally halted by the LTTE. The LTTE landmine attack on a civilian bus in Kebithogollawa in June 2006 which killed 64 and seriously injured 86, many of them children – was a pivotal moment for me and my govt. Military operations commenced in July 2006 when the LTTE closed the Mawilaru anicut, cutting off irrigation water to cultivators in the Trincomalee district, and did not stop until the LTTE was completely defeated on 19 May 2009.

I categorically reject the UK govt.’s allegation of widespread human rights violations during the military operations. Lord Naseby stated in the House of Lords on 12 October 2017 that the then UK Defence Attache in Colombo Lieutenant Colonel Anton Gash had in conversation with him, praised the discipline of the Sri Lanka Army and stated that there certainly was no policy to kill civilians. Because Lt. Col Anton Gash’s war time dispatches to London differ so significantly from the narrative promoted by the UK political authorities, only a heavily redacted version of those dispatches have been released. We conducted military operations only against the LTTE and not against the Tamil people.

Just months after the war ended, when my wartime Army commander came forward as the Opposition candidate at the 2010 presidential elections, the Tamil National Alliance issued a statement on 6 January 2010 appealing to the Tamil people to vote for the former Army commander and he won over 60% of the votes cast in the Northern and Eastern Provinces, thus directly contradicting the narrative being promoted by the UK govt. Imposing sanctions on Vinayagamoorthy Muralitharan, aka Karuna Amman, who broke away from the LTTE, in 2004, and later entered democratic politics, is a clear case of penalizing anti-LTTE Tamils so as to placate the dominant segment of the Tamil diaspora in the UK.

When the UK Foreign Secretary David Milliband came to Sri Lanka, in April 2009, and demanded a halt to military operations, I flatly turned him down. Later, a London-based newspaper The Telegraph revealed – quoting secret documents made public by Wikileaks – that Mr. Miliband had tried to intervene in Sri Lanka to win Tamil votes for the Labour Party. Regrettably, to this day, vote bank politics determines the UK’s stand on Sri Lanka’s war against the LTTE.

Three decades of LTTE terrorism claimed the lives of 27,965 armed forces and police personnel not to mention the lives of many thousands of civilians, including politicians. What Sri Lanka defeated in 2009 was the organization that the US Federal Bureau of Investigation had officially designated as the deadliest terrorist organization in the world. It is noteworthy that the United Kingdom introduced special legislation in 2021 and 2023 to protect their own armed forces from persecution by interested parties.

Hence I expect the present government to resolutely stand by and defend former armed forces personnel who face persecution by foreign governments and organisations for doing their duty to safeguard Sri Lanka’s national security.”

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Jet crash: Deputy Defence Minister, too, contradicts Minister Ratnayake

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Deputy Defence Minister Maj. Gen. (Retd) Aruna Jayasekera, on Tuesday (25), said that Air Force investigation into the 21 March K-8 advanced jet crash had not been concluded.

Jayasekera was responding to a media query. The media sought the Maj. Gen’s comments in the wake of Transport Minister and Leader of the House Bimal Ratnayake’s declaration that the crash had been caused by pilot error.

The Air Force Headquarters has already contradicted Minister Ratnayake’s unsubstantiated claim. The qualified instructor and the trainee ejected before the ill-fated aircraft, attached to the Katunayake-based No 05 squadron, crashed at Wariyapola.

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