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Sri Lanka in sorry plight thanks to IMF, says FSP Education Secretary

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By Rathindra Kuruwita

In the early 1990s, Sri Lanka had signed an international agreement undertaking to allocate six percent of its GDP for education, at a time when state revenue accounted for around 23 percent of GDP, Education Secretary of the Frontline Socialist Party (FSP) Pubudu Jayagoda said.

Jayagoda told The Island that in the 1970s, state revenue made up over 50 percent of the country’s GDP.

“Now, revenue has plummeted to around 12 percent, and a few years ago, it dropped to below 10 percent. The same individuals responsible for this decline are now lamenting the lack of funds for health and education,” Jayagoda remarked.

He attributed the decline in revenue to decisions made by successive governments to refrain from engaging in economic activities.

“In 1998, IMF representatives arrived in Sri Lanka and instructed the Chandrika Bandaranaike government to review taxes on foreign investors. This caused our state revenue to collapse. Ironically, the same IMF is now urging the government to increase state revenue to 15 percent of GDP. It’s absurd—the IMF’s advice reduced revenue to nine percent, and now they’re asking us to boost it,” he said.

Jayagoda added that the IMF had recently held a Zoom meeting on Sri Lanka.

“During the meeting, the IMF representatives insisted that international trade should face no barriers. They also advised against measures to protect domestic small and medium-sized enterprises, while advocating for the liberalisation of education, healthcare, and welfare programmes. Furthermore, they called for reforms to labour laws,” he explained.

The FSP Education Secretary warned that if Sri Lanka complied with these recommendations, its industries would collapse, leading to the loss of millions of jobs. Sri Lanka’s current crisis is a direct result of diligently following IMF recommendations, and that the country’s future looked bleak if it continues to heed IMF advice, Jayagoda added.



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Service chiefs won’t get extensions; scrapping of CDS Office confirmed

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CNI among officers to retire, new Military Int’l Chief named

By Shamindra Ferdinando

The JVP-led NPP government has decided against granting service extensions to current commanders of the Army, Navy and Air Force, as well as any other officer scheduled to retire on 31 Dec., 2024, according to sources.

Army Commander Lt. Gen. Vikum Liyanage and Navy Commander Vice Admiral Priyantha Perera are on their second extensions, whereas Air Force Commander Air Marshal Udeni Rajapaksa is on his first service extension. There have never been a previous instance of the Army, Navy and Air Force Commanders retiring simultaneously.

Among other officers expected to retire at the end of this year is Maj. Gen. Ruwan Kulatunga, Chief of National Intelligence (CNI). Kulatunga received the appointment in the second week of June, 2019, in the wake of the Easter Sunday carnage. Kulatunga succeeded retired DIG Sisira Mendis, one of those faulted by the Supreme Court for the failure to thwart the National Thowheed Jamaat (NTJ) terror attacks.

Sources said that Deputy Defence Minister Maj. Gen. (retd.) Aruna Jayasekera (NPP National List) had explained the government’s position with regard to service extensions to relevant officers. Unlike in the previous years, the newly retired officers were unlikely to be considered for diplomatic appointments, sources said. Ex-military chiefs who had been heading our diplomatic missions at the time of the change of government were recalled. Among the recalled were three former Navy Commanders, Admirals Jayanath Colombage (Indonesia), Ravi Wijegunaratne (Pakistan) and Nilantha Ulugetenne (Cuba). The NPP government also recalled Air Chief Marshal Sudarshana Pathirana from Nepal.

Within weeks after the general election held on 21 Nov., the NPP brought the State Intelligence Service (SIS) under DIG Dhammika Priyantha. The appointment brought the SIS under the police again. Following the 2019 presidential election, President Gotabaya Rajapaksa appointed Maj. Gen. Suresh Sallay as head of the SIS, in place of DIG Nilantha Jayawardena, also fined by the Supreme Court for failing to thwart the NTJ attacks. The government picked DIG Priyantha in spite of him not having served the intelligence services previously.

In spite of Jayawardena being accused of negligence, in early January 2023, on the recommendation of the then IGP Chandana Wickremaratne, he was promoted to the rank of Senior DIG and appointed Senior DIG Administration. However, in July, in the run up to the presidential election, the National Police Commission (NPC) sent Jayawardena on compulsory leave pending an internal disciplinary investigation into his part in the overall intelligence failure leading to the Easter Sunday attacks.

Near simultaneous attacks claimed the lives of 270 people. More than 400 others were wounded in the suicide blasts. Among the dead were approximately 40 foreigners.

In line with the NPP’s policy, the Office of Chief of Defence Staff (CDS) would be scrapped and the coordinating of the armed forces brought under direct control of the Defence Ministry, sources said. Hence incumbent CDS General Shavendra Silva, the wartime GoC of the celebrated 58 Division (formerly Task Force 1) would retire on 31 Dec., 2024.

The appointment of Brig. Deeptha Ariyasena as head of the Directorate of Military Intelligence (DMI) was among the key changes effected by the new government. Several senior officers of the DMI had been moved to the Regimental Centre while the government is contemplating what one source called total overhaul of the intelligence community.

Ariyasena, who had been with the mechanized infantry, served in the East as Brigadier General Staff when Maj. Gen. Aruna Jayasekera functioned as the Security Forces Commander, East, in the post-war period. Ariyasena hadn’t served the intelligence services before the new appointment. Jayasekera retired in Oct. 2019 after having served the Army for over 30 years.

Political and military sources said that the NPP government’s concerns over the security apparatus needed to be addressed soon. Sources pointed out that Defence Secretary Air Vice Marshal Sampath Tuiyakontha and Maj. Gen. Aruna Jayasekera played a significant role in the NPP political campaign in the run up to the presidential and parliamentary polls and were instrumental in overseeing the changes.

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Payment of Aswesuma arrears commenced yesterday

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The Welfare Benefits Board (WBB) has announced that outstanding funds for the Aswesuma payments will be made available to beneficiaries’ bank accounts, starting yesterday (27).

According to the WBB, over 212,000 families will now have access to their overdue payments, with more than Rs. 1.3 billion being disbursed as part of this initiative.

Meanwhile, the Minister of Rural Development, Social Security, and Community Empowerment, Upali Pannilage, revealed plans for a new programme aimed at empowering 400,000 low-income families. The initiative, set to be implemented in 2025, will primarily target families who previously received Samurdhi benefits but were not included in the Aswesuma scheme.

“Support from the Asian Development Bank (ADB) and the World Bank will be instrumental in this programme,” Minister Pannilage stated on Friday (27). “This is not just another initiative to distribute financial aid. Our goal is to genuinely transform how these families live and earn, providing them with sustainable opportunities.”

The programme represents a shift in the government’s approach to poverty alleviation, focusing on long-term empowerment rather than short-term financial relief. Further details are expected to be announced in the coming months.

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Wildlife depredation costs Sri Lanka’s Rs. 55.3 billion

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By Nimal Gunathilake

Crop damage caused by animals, such as wild boars, porcupines, and monkeys, caused a loss of of 55.3 billion rupees in 2022 and 2023, according to Anuradha Tennakoon, Chairman of the National Farmers’ Federation.

Tennakoon said wild animals had destroyed approximately 86.7 million coconuts, valued at 5.2 billion rupees, affecting 17.5% of the nation’s total coconut yield across 140,450 hectares. The destruction of crops by wild animals are as follows: 25% of rice, 11% of maize, and 7% of vegetables.

Wild boars and monkeys alone have destroed 131 million kilos of rice, 169 million kils of bananas, and 6.8 million kilos of maize, causing losses to the tune of Rs 13.2 billion, Rs 22.1 billion, and Rs 10.3 billion, respectively. They also destroyed 59.7 million kilos of vegetables, amounting to a loss of Rs 4.5 billion.

The Uva Province was the worst affected, with 45,000 hectares of crops being destroyed. Tennakoon said the government had to adopt modern technology to address the issue of depredation, which he attributed to huge increases in wildlife in the agricultural areas.

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