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Srilanka Emergency
Sri Lankan President Anura Kumara Dissanayake, in his inaugural address to the newly convened parliament, on Thursday pledged to fulfil his pre-election promises by ensuring the supremacy of law and addressing past wrongdoings. Staying true to his National People's Power (NPP) party's commitment to austerity, Dissanayake made a modest ceremonial entry to parliament, foregoing the usual pomp of motorcycle outriders, motorcades, and military gun salutes. Clad in a simple white tunic, the 56-year-old President addressed the parliament from the Speaker's chair, marking the first session since his party's landslide victory. The NPP created history in the November 14 election by winning 159 seats in the 225-member assembly. This was the first time that a government had won two-thirds control or over 150 seats in a parliamentary election held since 1989. It is our duty to make everyone accountable and equal before the law," Dissanayake said, adding, We will deliver justice to everyone ...
The Centre on Tuesday extended the ban imposed on the LTTE for five more years as it continues to foster a separatist tendency amongst the masses and enhance the support base for it in India, particularly in Tamil Nadu. The Union Home Ministry imposed the ban invoking the sub-sections (1) and (3) of section 3 of the Unlawful Activities (Prevention) Act, 1967. In a notification, the home ministry said the central government is of the opinion that the LTTE is still indulging in activities which are prejudicial to the integrity and security of the country. It said that even after its military defeat in May, 2009 in Sri Lanka, the LTTE has not abandoned the concept of 'Eelam' (an independent country for Tamils) and has been clandestinely working towards the 'Eelam' cause by undertaking fund raising and propaganda activities and the remnant LTTE leaders or cadres have also initiated efforts to regroup the scattered activists and resurrect the outfit locally and internationally. "The ...
The Sri Lankan government raised retail fuel prices by Rs 20 effective from Monday in its monthly revision, making it the first retail price hike of any commodity under the imposition of new Value-Added Tax rates. The government revises fuel prices monthly based on the exchange rate of the US dollar and the global oil market prices. However, Monday's hike was purely a result of the new VAT rates. Sri Lanka's VAT rate has been increased by three per cent from Monday for the band, which was previously taxed at 15 per cent, while most VAT-exempt items have been brought under 18 per cent in a highly unpopular move. Last month, the International Monetary Fund (IMF) approved the release of the second tranche worth USD 337 million to the cash-strapped island nation, bringing the value of disbursements to USD 670 million in the four-year facility. With its reforms, the IMF programme meant that the government set cost-based tariffs for utilities, while several rate hikes on electricity ...
Sri Lankan President Ranil Wickremesinghe on Monday effected the first reshuffle of his Cabinet, changing the portfolios of two ministers, amidst criticism from the opposition that he was planning to postpone elections that are due in the cash-strapped country next year. Significantly, Health Minister Keheliya Rambukwella was moved to the Environment Ministry following weeks of public dissatisfaction with his handling of the ministry. Rambukwella, 69, survived a motion of no confidence in Parliament moved against him by the opposition to highlight inefficiency, corruption and mismanagement in the ministry's conduct. Rambukwella a fortnight back had ordered a police investigation into an Indian company's alleged supply of a substandard drug. The Indian company had however denied such a supply to a Sri Lankan importer. The Environment Ministry was held by Wickremesinghe himself when the incumbent came to be disqualified as a member of parliament through a court order. The health ...
Sri Lanka and the IMF have reached a crucial staff-level agreement to release the second tranche of about USD 330 million out of the USD 2.9 billion bailout package which will help in the cash-strapped country's economic recovery. The International Monetary Fund in March this year approved a 48-month, USD 2.9 billion extended arrangement under the Extended Fund Facility (EFF) to support Sri Lanka's economic policies and reforms. The IMF mission that visited Sri Lanka for the first review of the global lender-supported Extended Fund Facility programme for the country noted that despite early signs of stabilisation, full economic recovery is not yet assured. "Sri Lanka will have access to SDR 254 million (about US$330 million) in financing once the review is approved by IMF Management and IMF Executive Board," the IMF said in a release on Thursday. The release of the second tranche at the conclusion of the first review of the facility approved in March is subject to approval by the I
The IMF will conduct the first review of the USD 2.9 billion bailout to Sri Lanka from September 11-19, state minister of finance Ranjith Siyambalapitiya said on Saturday and declared that the country has successfully fulfilled the nine conditions set by the global lender. Sri Lanka was hit by its worst economic crisis in history when the country's foreign exchange reserves fell to a critical low and the public came out on the streets to protest the fuel, fertilisers as well as essential commodities shortage. The country has to finalise its external and domestic debt restructuring by September when the International Monetary Fund (IMF) carries out its first review of the USD 2.9 billion bailout granted in March this year. The eight-day review is to happen from September 11 to 19, Siyambalapitiya said. The central bank, the ministry of finance and the minister of finance would be involved in the review. We had to fulfil nine pre-conditions which we successfully did. The arrangement
Cash-strapped Sri Lanka on Monday said that its inflation has dropped to 6.3 per cent, a single-digit figure for the first time in two years, providing much-needed relief to the people amidst the worst financial crisis. In a statement, the Census and Statistics Office of the Sri Lankan government said that the overall rate of inflation as measured by the Colombo Consumer Price Index on a year-on-year basis is 6.3 per cent in July 2023 and it was down from 12 per cent recorded in June this year. The overall rate of inflation as measured by the Colombo Consumer Price Index on a year-on-year basis is 6.3 per cent in July 2023. This was down from the 12 per cent recorded in June, the statement said. The last time single-digit inflation was recorded was 5.8 per cent in September of 2021. The highest inflation since the island nation's economy came under its worst crisis was 69.8 per cent recorded in September last year. The statement further said that the decrease in the cost of food ..
Normal life was disrupted in Sri Lanka's northern and eastern provinces on Tuesday due to widespread protests by the main Tamil party Tamil National Alliance against a new controversial anti-terrorism bill drafted to replace a draconian counter-terrorism law. The new Anti-Terrorism Act (ATA) will replace the much-maligned Prevention of Terrorism Act (PTA) of 1979. The PTA was introduced as a temporary arrangement to counter the campaign of separatist violence by the Tamil minority militant groups in 1979. On April 1, Prime Minister Dinesh Gunawardena told reporters that the new counter-terrorism law will be introduced later this month. The protests, organised by the Tamil National Alliance (TNA), were against the new Anti-Terrorism Act (ATA), political sources from the two provinces said. In the northern Jaffna's Tenmarachchi, Kodikamam and Chavakachcheri, life came to a standstill with all shops and business establishments shut in the three divisions, they said. The government in
Debt restructuring and resolution are urgent issues for many low and middle income nations, and the G20 agrees that these matters must be speedily dispensed with, Union Finance Minister Nirmala Sitharaman has said. She told a press conference here on Thursday that discussions of G20 countries and multiple stakeholders on these issues on the sidelines of the annual spring meeting of the IMF and the World Bank were to ensure that resolution for countries in debt should happen in time. Representatives of some of the countries facing debt such as Sri Lanka, Zambia, Ghana and Ethiopia were present for the discussions. The finance minister said the Global Sovereign Debt Roundtable, held on Wednesday, has also brought in a certain avenue for people to talk about how they will have to work towards addressing debt distress and amid an emerging global debt landscape, Sitharaman said. Zambia did mention that it had applied almost a year and a half ago for debt resolution and is still waiting.
India has handed 75 passenger buses to Sri Lanka as part of its assistance towards strengthening public transport infrastructure in the cash-strapped country. As part of its 'Neighbourhood First' policy, India has extended multi-pronged assistance to Sri Lanka to help the country tide over its worst economic and humanitarian crisis since its independence from Great Britain in 1948. Supporting mobility and accessibility in Sri Lanka, High Commissioner handed over 75 buses for use by Transport Board. 500 buses are being supplied to Sri Lanka through Indian assistance towards strengthening public transport infrastructure, the Indian High Commission here said in a statement. In a similar move, India handed 125 SUVs to the Sri Lanka Police under a line of credit in December to support the island nation and help it address the serious mobility restriction issues faced by the police, due to the non-availability of vehicles. The Sri Lankan government in May last year declared a debt defaul
China has donated another consignment of medical supplies worth USD 54,19,100 to Sri Lanka as the island nation continues to overcome its worst hit economic crisis, the Chinese Embassy said here on Wednesday. With the latest consignment, which arrived in Sri Lanka on Tuesday, China has donated 5 billion rupees worth of medical supplies to Sri Lanka since the economic crisis the island nation in June. "The medicine worth 2 billion rupees arrived on Tuesday. China has donated 5 billion rupees worth of medicine to Sri Lanka since the economic crisis came to hit in June," the embassy said. The shipment of medical supplies was after this week's donation of 1000 metric tons of rice meant for students, the Embassy said. Sri Lanka and China are talking currently on debt restructuring. President Ranil Wickremesinghe said on Monday that talks were continuing with the Exim Bank of China on restructuring debt. Sri Lanka is nearly bankrupt and has suspended repaying its USD 51 billion forei
Sri Lankan Prime Minister Dinesh Gunawardena has met top executives from India and stressed the need for further growth in bilateral trade and increase Indian investments in new areas, where the techno knowhow from the neighbouring country could be introduced, according to his office. Prime Minister Gunawardena made the remarks when the Indian CEO Forum-Sri Lanka (ICF) called on him at the Prime Minister's Office on Thursday. He thanked the Indian companies for their significant input and support to Sri Lanka's economy by way of bringing substantial investments into the cash-strapped country, export earnings, employment generation, and contribution of treasury through direct and indirect taxes, the PM office said in a statement. The ICF team led by its President T S Prakash stated that the member companies represent diverse industries from automobile, banking, cement, and FMCG to fuel, glass, hospitality, infrastructure, logistics, packaging, paint, and pharmaceuticals. Referring t