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Sumanthiran leads MPs’ call: Postpone debt repayment now

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‘Deepening crisis cannot be addressed solely by meeting foreign loan obligations’

Tamil National Alliance (TNA) MP M. A. Sumanthiran, PC, on behalf of several political parties, represented in Parliament, has requested the government to delay the repayment of foreign debt. Jaffna District MP and the TNA spokesperson Sumanthiran said that he had launched an effort to seek a consensus with his colleagues in his former capacity as the Chairman of the Parliamentary Committee on Public Finance.  The group questioned the government strategy meant to address the deteriorating financial crisis.

The following is the text of the statement titled ‘A collective response to our economic crisis’ issued yesterday: “Sri Lanka is in the midst of an unprecedented economic crisis, causing severe hardship to all segments of our society, especially our working people and the poor.

Undoubtedly, the government has a daunting task ahead, and as a country there is a need for us all to come together to overcome this challenge.

At the same time, the government’s approach to resolving the crisis raises some serious questions. Its focus, almost solely on meeting foreign debt obligations, is draining the country of dollars needed for importing essentials for our people. The government’s emphasis on avoiding a default at any cost appears to be downplaying a fundamental question – can our people eat? After all, a country’s pride rests not only in repaying its loans, but also in ensuring no citizen goes to bed hungry.

Recognising this dire situation, a group of leaders from over half a dozen key political parties in Sri Lanka came together in a closed-door meeting on Thursday 27th January 2022, to brainstorm ways to tide over this crisis, given the responsibility we have towards the Sri Lankan people.

I approached parliamentary colleagues and party leaders, in my capacity as a former chairman of the Committee on Public Finance in Parliament. MPs came together in the knowledge that Parliament is expected to have full control of public finance, and that each MP, therefore, also has a fiduciary responsibility to ensure the proper management of public finances in Sri Lanka.

The crisis, we noted, is of a proportion that is historically unprecedented for many reasons:

(1) The country’s ratings have fallen to the level of being blacklisted in international credit markets. Since April 2020, Sri Lanka has been locked out of borrowing using International Sovereign Bonds (ISBs) in the international market

(2) Repaying US dollar debt in this context means that the usable foreign reserves are down to below one month of imports – the lowest on record since independence.

(3) The ratio of interest on debt to government revenue was above 70% in 2020, a historical high for Sri Lanka, and amongst the highest in the world.

(4) The ratio of public debt compared to the value of Sri Lanka’s domestic production (GDP) is also the highest on record, at 120%. It skyrocketed, by almost 25 percentage points, in the last two years.

Each of these situations by themselves would spell a serious economic challenge. Occurring simultaneously, they threaten our future in both the short term and long term.

In this context, the Central Bank’s policy has been to hoard the scarce dollars to pay creditors in full and on time. This has fueled a shortage of dollars for the needs of our own people, and reduced imports of essential items such as food, medicines and fuel. We see the shortage manifesting in long queues for essential items and frequent power outages. The situation will only worsen over the year, if the government does not urgently shift gear and ensure adequate dollars are available to the Sri Lankan economy.

Already, the government’s rash chemical fertilizer policy has impacted farmers across Sri Lanka, leaving us with an imminent food crisis. The government’s current policy path on debt management, as it was in the case of fertilizer policy, is exacerbating the crisis, without a sensible or viable solution in sight.

Our recent meeting provided a platform for political leaders to share the concerns of their constituencies and identify the critical issues that require urgent attention. There was wide acknowledgement that the Central Bank hoarding dollars to make lump-sum debt payments was leading to a shortage of dollars to procure essential supplies within the country. This is resulting in severe economic hardships for the people of Sri Lanka and long-term damage to the economy, while providing windfall gains to the holders of Sri Lanka’s Sovereign Bonds.

We agreed that Sri Lanka should take immediate measures to protect the poor from the adverse impact of this economic crisis, and postpone repaying its debt as a first step. Participating MPs also felt that we need sound reform to the national economic policy to address the root causes of the crisis and ensure sustainable solutions.

This group of political leaders agreed to continue engaging and working together towards ensuring justice for the people of Sri Lanka, through solutions that are sustainable. We must steer the country out of this unprecedented economic crisis, and forge an equitable and just future for our future generations.”



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Where is Gnanasara Thera?Police pass buck to court

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Gnanasara Thera

by Norman Palihawadane

Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Aththe Gnanasara Thera’s whereabouts have remained unknown since the Supreme Court, on Monday, annulled a presidential pardon granted to him in 2019.

Prison officers visited the Thera’s temple in Nawala, Rajagiriya, to take steps to return him to prison to serve the unexpired portion of his six-year sentence. However, monks at the temple had reportedly informed the officials that they were unaware of his whereabouts.

Police spokesman ASP F.U. Wootler said a separate court order was required for the police to trace the Thera, or assist in taking him into prison custody. No such order had been issued so far, he claimed.

Meanwhile, sources close to Gnanasara Thera said he was expected to attend a book launch in Colombo tomorrow (17),

The development follows the Supreme Court declaring the 2019 presidential pardon granted to Gnanasara Thera, by then President Maithripala Sirisena, null and void.

A three-member Supreme Court bench held that the pardon had been granted arbitrarily and violated public trust and principles of natural justice.

Gnanasara Thera had been serving a six-year prison sentence for contempt of court when the then President Sirisena granted him the pardon, in May, 2019. He had served only about nine months of the sentence at the time.

With the pardon annulled, the original sentence remains in force and the Thera is now required to serve the balance of his six-year term.

The Supreme Court ruling has raised questions over the procedure to be followed to return him to prison, with police and prison authorities yet to take custody of him.

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Russian citizens in Lanka to vote in State Duma elections

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Chandana Ruwan Jayanetti, Director of the Advanced Technological Institute, Galle, presented a copy of his new book POEMS FROM GALLE, to Prime Minister Dr. Harini Amarasuriya in her office in Parliament last Friday (11). Dr. Hiniduma Sunil Senevi, Minister of Buddhasasana, Religious and Cultural Affairs, is also in the picture.

Russian citizens residing or temporarily visiting Sri Lanka will have the opportunity to cast their ballots in the elections to the State Duma of the Federal Assembly of the Russian Federation on September 20.

The Embassy of the Russian Federation in Sri Lanka said polling would be held at polling station No. 8338 at the Russian Embassy, 404, Bauddhaloka Mawatha, Colombo 07.

The polling station will be open from 8 a.m. to 8 p.m. on September 20, according to the Embassy.

Russian citizens aged 18 and above, including those permanently residing in Sri Lanka and those temporarily visiting the country, are eligible to vote, the Embassy said.

Voters are required to visit the polling station during its operating hours and produce documents certifying their Russian citizenship.

The Embassy said prior registration was not required to participate in the voting.

The election will be held to elect deputies to the ninth convocation of the State Duma, the lower house of Russia’s Federal Assembly.

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Euro 110,000 research drive to tackle plastic waste in food sector

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Grant agreement signed by Mahmoud Gaballah, Project Manager at Expertise France and Sr. Prof. Pasdunkorale Arachchige Jayantha, Vice-Chancellor of the University of Ruhuna

Plastic waste is a growing challenge for Sri Lanka’s food sector, yet important gaps remain in understanding where and how single-use plastics are used, how they move through food value chains, and where interventions could have the greatest impact.

Through the European Union-funded CIRCULAR project, new research will help address these gaps by generating evidence to inform policy, business practices and more sustainable choices. Three research grants, totalling €Euro 110,000, will support university-led studies by research teams from the Faculty of Agriculture at the University of Ruhuna, and the Faculty of Medicine and Faculty of Computing at the University of Kelaniya.

Together, the studies will examine the use, flow and impacts of single-use plastics (SUPs) across selected food and beverage value chains in the Colombo and Galle Districts. The research will also seek to identify practical opportunities to reduce plastic use, promote more sustainable alternatives and strengthen circular economy practices.

At present, available data on plastic waste in Sri Lanka, particularly single-use plastics, do not provide sufficient detail on the sectors, sources and types of plastics involved. This limits the ability of policymakers, businesses and other stakeholders to pinpoint where plastic use can be reduced most effectively and to assess which interventions could deliver the greatest impact. The new research will help provide a more detailed understanding of these patterns, supporting more targeted and evidence-based action.

The three research teams will use a combination of data collection, waste-flow mapping, environmental and public health assessments, and life-cycle approaches to examine these challenges from different perspectives. The findings are expected to help identify opportunities to reduce plastic use, improve resource efficiency and promote more sustainable packaging and waste management practices.

The research grants are part of the CIRCULAR project’s broader efforts to support Sri Lanka’s transition towards more sustainable production and consumption in the food sector. Alongside research and evidence generation, the project works to raise awareness, encourage behaviour change and support approaches that move away from the traditional “take, make and dispose” model towards a more circular economy.

Circular Economy in the Food Sector (CIRCULAR) project is a three-year initiative focused on reducing food loss and food waste (FLW) and Single-use plastic (SUP) waste in the Food Sector in Sri Lanka. Funded by the European Union, and partially co-funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the project is jointly implemented by Expertise France (EF), the Food and Agriculture Organisation (FAO) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

By strengthening the evidence base on single-use plastics, the research is expected to provide a stronger foundation for practical action, helping decision-makers, businesses and other stakeholders better understand where change is needed and how more sustainable solutions can be put into practice.

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