Jan 24 (FT) The sovereign default announced by Sri Lanka on 12 April 2022, was the cumulative result of fiscal folly over many years. This writer has attempted to uncover the root causes of our sovereign predicament in a series of interviews with international media between January and July 2022; a curated version of which could be accessed online1. Two in-depth studies by this writer published in 20162 and 20173 prognosticated what was clearly a looming disaster. more..

Jan 24 (FT) SL underwent an economic crisis in early 2022 and continued to be in the crisis with no apparent recovery. East Asia also went through an economic crisis in 1997 but recovered within a year. This note explains why the current macroeconomic policy package adopted in SL may not yield an East Asian style recovery in SL. The note also explains long-term strategies to stage a recovery similar to East Asia. SL’s continuing economic crisis as well as the policy responses taken to resolve crisis more..

Jan 24 (AD) Human Rights Commission of SL (HRCSL) has summoned the Secretary to the Ministry of Power and Energy, and the Chairman of the Public Utilities Commission of SL (PUCSL) for an inquiry as to why they failed to prevent the implementation of power cuts during the ongoing 2022 G.C.E. A/L Exam. Accordingly, the inquiry is scheduled to take place at 10:30 a.m. tomorrow, at the HRCSL premises. Although the pair were notified of the relevant inquiry yesterday, more..

Jan 24 (DM) The Court of Appeal today converted the sentence on a woman accomplice of the LTTE woman suicide bomber who committed suicide at the Kollupitiya Police station in 2004, from two years suspended imprisonment to death sentence. Accordingly, Court of Appeal ordered the Colombo High Court to issue an arrest warrant for the arrest of the accused Selvakumar Sathyaleela alias Sathya for the proper implementation of this judgment and the sentence. more..

Jan 24 (EN) Former finance minister Basil Rajapaksa, whose govt has been blamed widely for the island nation’s worst currency crisis in decades, has co-opted a popular opposition slogan to absolve the ruling SLPP. Fielding questions from reporters at the end of a religious ceremony in Kandy, Rajapaksa intimated that the SLPP wasn’t solely responsible for the crisis. When a journalist asked if it wasn’t the SLPP govt of ex Prez more..

Jan 24 (FT) MAS Amity, a subsidiary of MAS Holdings, has signed a Joint Venture Agreement with Tata Group’s Trent Ltd., setting up an entity in India for the joint development of business into intimate wear and other apparel related products. Over time, MAS and Trent would pool their domain expertise to undertake design, development and manufacturing of a range of intimate wear and other apparel products. Initially, the joint venture would facilitate design, sourcing of related products more..

Jan 24 (DM) SJB mayoral candidate of Colombo Municipal Council in the upcoming LG Election, Mujibur Rahuman today filed a Fundamental Rights petition in Supreme Council seeking an order quashing the Cabinet Decision to instruct the District Returning Officers not to accept deposits from the LG Election candidates. Mujibur Rahuman filed this petition challenging the decision taken by the Secretary to the Ministry of Public Adm, Home Affairs, PCs, and LG to issue a letter dated more..

Jan 24 (Reuters) Export-Import Bank of China has offered SL a 2-year moratorium on its debt and said it will support the country's efforts to secure a $2.9 billion loan from the IMF, according to a letter reviewed by Reuters. India wrote to the IMF earlier this month, saying it would commit to supporting SL with financing and debt relief, but the island nation also needs the backing of China in order to reach a final agreement with the global lender. more..

Jan 24 (EN) Finance Ministry’s struggle in paying state sector salary and pension may ease from April as the govt’s tax hike could help to meet such expenses, Cabinet Spokesman Bandula Gunawardena said. Govt has been struggling to pay state sector salaries, pensions, and transfer payments like Samurdhi, which is likely to see some delays. The govt is unable to print money for state sector salary as per prior action for a $2.9 billion IMF deal, govt officials have said. more..

Jan 24 (AD) A writ application has been filed with the Court of Appeal seeking an order rescinding the cabinet ministers’ directive to the Public Utilities Commission (PUCSL) with regard to increasing the electricity tariffs. The cabinet had earlier instructed the electricity sector regulator to work with the CEB to take necessary measures to increase the tariffs. Electricity Consumers’ Association and the Centre for Environmental Justice had put forward the said writ application, more..

Jan 24 (EN) Shares fell from a more than three-month high on Tuesday (24), although the market was still with positive sentiment due to a possible deal with the IMF that is likely to be in the near future, analysts said. ASPI closed 0.98% or 88.55 points weaker at 8,902.24, from its highest close since Oct 14 in the previous session. “Although the market is in the red, it’s a positive sentiment because of the assurances on debt restructuring and the IMF assistance, pushing the market more..

Jan 24 (DM) The Committee on High Posts approved the appointment of a new High Commissioner, an ambassador and two Chairpersons, Secretary General of the Parliament Dhammika Dasanayake said. Accordingly, Chitranganee Wagiswara received the approval of the Committee on High Posts to be appointed as the High Commissioner of SL to the Commonwealth of Australia while M.H.M.N. Bandara as the Ambassador of SL to the State of Israel. more..

Jan 24 (AN) SL is seeking to boost relations with Saudi Arabia through connectivity, investment, and employment opportunities, its foreign minister said on Monday as he began a visit to the Kingdom. Ali Sabry, who will be visiting until Jan. 27, was scheduled to meet with Saudi Foreign Minister Prince Faisal bin Farhan during the official trip, as well as senior officials from the Islamic Development Bank, Organization of Islamic Cooperation more..

Jan 24 (EN) Sri Lanka’s inflation will come down to single digit levels by year end, helping bring rates down, CB Governor Nandalal Weerasinghe said but there was no public forecast on growth. “Inflation will be single digit by the end of the year,” Governor Weerasinghe told a business forum organized by the Ceylon Chamber of Commerce. SL’s central bank is now operating an exchange rate peg at 360/370 to the US dollar, helping externally anchor the monetary system. more..

Jan 24 (AD) Cabinet Spokesman Bandula Gunawardena has stated that there is no pressing need to take any action against the Secretary to the Ministry of Public Adm, Neil Bandara Hapuhinna. “He issued the relevant letter and recalled it on the same day. The letter had no legal effect. Such mistakes have been made by ministerial secretaries previously as well, and since it has not led to any prejudice, I do not think there is a need or a way to take any action against these officials”, more..

Jan 24 (TM) With widespread complaints from customers about the high price of eggs despite the imposition of a maximum retail price (MRP), State Trading Corporation (STC), which is responsible for importing eggs, is awaiting the approval of the Dept of Animal Production and Health (DAPH) to proceed with the necessary imports in order to stabilise the market prices. State Trading Corporation has handed over more..

Jan 24 (SLN) SL Navy and Police seized over 60kg (wet weight) of Kerala cannabis, during a combined search operation carried out in the beach area of the Analathivu Island in Jaffna on 24th Jan 2023. The Navy keeps a watchful eye on the coastal and sea areas around the island, with a view to curb a wide range of illegal activities carried out by smugglers via sea. As an extension of constant naval search operations and patrols, SLNS Elara in the Northern Naval Command, more..

Jan 24 (DM) Former Highways Minister Johnston Fernando is reported to have sought a cabinet portfolio from Prez Wickremesinghe since a new cabinet was sworn in a few months ago. Political sources said that the ministry he has sought is the Trade Portfolio. However, his request is yet to be approved by the President who recently said that he would not be handing out anymore portfolios anytime soon following the latest appointments of Jeevan Thondaman & Pavithra more..

Jan 24 (DM) At least four persons were injured in a clash between the Ava gang and the Kany gang operating in Jaffna today at Chunnakam, Jaffna. It is reported that the members of the two gangs clashed after a car and a cab they were travelling in collided head on at Chunnakam, in Jaffna on the Jaffna Kankesanthurai road. A car and a cab as well as a motorcycle were seriously damaged in the collision. The police said that due to the collision of the two vehicles, they attacked each other with more..

Jan 24 (TM) The Election Commission (EC) is scheduled to meet political parties today to decide on the authorised spending amounts and related expenditure ceilings with regard to the LG poll under the recently passed Regulation of Election Expenditure Bill, also known as the Campaign Finance Bill. EC Chairman Attorney Nimal Punchihewa said yesterday that during the meeting, the criteria of the said Bill including the expenditure ceiling amounts would be discussed. more..

Jan 24 (AD) The aim of the Committee on Public Finance (COPF), regardless of allegiances, will be to stand by the reforms promulgated by the IMF and being executed by the Central Bank, committee’s chairman MP Harsha de Silva says. His remark comes in the wake of a CB confirmation that they are confident of having an actual IMF first tranche disbursement within the first quarter of 2023. COPF has queried more..

Jan 24 (TM) Colombo Additional Magistrate Rajindra Jayasuriya yesterday (23) proceeded to conduct the death inquest of Janashakthi PLC Director Dinesh Schaffter in the Magistrate's chamber instead of open court for the fourth consecutive day, as per a request made by the deceased’s family members. The death inquest was taken up last morning, and the Additional Magistrate ordered that it be conducted in the Magistrate's chamber at the request of Schaffter's family. more..

Jan 24 (CT) The SL Twins Organization will hold Twin Miss World and also the most handsome twin couple 2023, at the SL Foundation Institute Colombo. This event is endorsed by the Ministry of Tourism and also the SL Tourism Promotion Bureau. This event will also carry a meaningful purpose, as it mainly targets the economic growth of the country by covering several areas such as social, economic, culture and tourism. This will be a wonderful opportunity to promote SL as an important more..

Jan 24 (EN) SL’s upcoming local govt elections still appears to be hanging in the balance with the date of the election yet to be gazetted and the cabinet spokesman pointing to the country’s dire financial situation when asked to comment. Minister Bandula Gunawardena told reporters that the cabinet of ministers has not discussed delaying the election but the govt has informed the election commission & courts that this is a very challenging situation. more..

Jan 24 (Island) Batalagoda Paddy Research Institute Director, Dr. Jayantha Senanayake, denied having directed any officer, or team, to conduct research on paddy cultivation in Lunugamwehera. He was referring to reports that there is nematode and yellowing in 25,000 acres of paddy, cultivated in the Lunugamwehera area. It has been reported that 11,000 acres of paddy fields have been destroyed by nematodes and another 14,000 acres of paddy are to be abandoned on advice given by more..

Jan 24 (TM) Central Bank of SL (CBSL) temporarily pumped in Rs 300 billion through term reverse repo last week to bring the interest rates down by converting the money market positive, CBSL weekly indicators showed. Accordingly, the Reserve Money at CBSL increased from Rs 1,361 billion to Rs 1,661 billion by the end of last week as the Total Overnight Market Liquidity stood at Rs 136 billion by Friday (20). Head of Research at First Capital Dimantha Mathew said that more..

Jan 25 (CT) In a month’s time, the future of SL will be decided not only in democratic terms but also in economic terms. There will be a strong democratic uprising if the govt fails to hold the local govt elections scheduled to be held in March 2023. By next month, whether the govt allows the Elections Commission to hold the elections will be clearer. This is going to be the litmus test. Democracy and Free Economy are like twin sisters. No parent should try to neglect one against the other. more..

Jan 25 (DM) SL’s professional classes are paragons of virtues at normal times. But, their bruised sense of entitlement at the new personal income tax revisions is nothing but a callous display of rent-seeking opportunism. Last week, a group of professional organisations representing govt doctors, university dons, engineers and banking employees took to the street against the govt’s new progressive income tax. They warned that paying the personal income tax at a reduced tax threshold more..

Jan 25 (GV) In July 2020, Indika Rathnayake, a non-theistic online activist, was summoned to the Organised Crimes Prevention Police Division and questioned for 3 hours. Propagating fictitious ideas was his organised crime. The monk-director of the Buddhist Information Centre had complained about Mr. Rathnayake’s facebook posts claiming that Buddhism originated from Jainism. Why a police division set up to prevent more..

Jan 25 (DM) SL seems to be sinking further and deeper into the doldrums. As the cost of living continues to rise beyond the reach of a majority of the people, tempers fray and stories of people taking the law into their hands are becoming commonplace practice. On Saturday, we witnessed an ugly spectacle of growing social tensions breaking out into violent conflict at a prominent shopping centre in the heart of Colombo. Economynext in Nov 2022 revealed that in first 9 months of past year, more..

Jan 25 (TM) In a bid to address a long drawn-out issue within the Police force, i.e. Police officers covering up the wrongdoings of their fellow officers and acting in their favour, National Police Commission (NPC) recently said that it is in the process of preparing a series of new guidelines to prevent such in the future. NPC Chairman and former IGP Chandra Fernando noted that the said situation has led to a rise in instances of misconduct among Police officers in the recent past. more..

Jan 25 (TM) “The manner in which people exercise their freedoms change with time. When it comes to freedom of expression, at present, it is exercised more and better through online platforms such as social media than through traditional media. Therefore, a threat to social media use is essentially a threat to several freedoms, the main one being the freedom of expression”. These concerns are a response to one of the Govt’s more..

Jan 25 (CT) The extinction of species and degradation of the environment has sadly become such a common phenomenon and the overall long-term impact has been completely ignored, with very few mechanisms in place to mitigate this catastrophe. Incidents of forest clearing, extinction of species including endemic species, have most evidently drastically increased over the recent past. Environmentalists and Conservationists are consistently voicing against such incidents more..

Jan 25 (ST) My attention was drawn to a casual, and often repeated, notice from the Central Bank last week on the future of alleged rogue bond trader Perpetual Treasuries Ltd. It said that the Monetary Board of Central Bank of SL has decided to extend the suspension of Perpetual Treasuries Ltd “from carrying on the business and activities of a Primary Dealer for a further period of six months with effect from Jan 5, 2023, in order to continue the investigations being conducted by the CB”. more..

Jan 26 (Island) The SLPP and the UNP are trying every trick in the book to postpone the local govt (LG) elections for fear of losing them. Their leaders are ready to do everything in their power to derail the mini polls scheduled to be held on 09 March. It is against this backdrop that their alleged attempt to have the Election Commission (EC) reconstituted should be viewed. They are all out to get rid of the EC members, who have refused to pull political chestnuts out of the fire for them. more..