Category: Sri Lanka

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Fleeing woes, first batch of Lankan refugees reach TN

The first batch of six Sri Lankan persons, including one man, two women and three children, were stranded mid-sea and were rescued by Coast Guard officials. The second batch of ten persons reached Dhanushkodi yesterday, reports Asian Lite News

With Sri Lanka reeling under a severe economic crisis, sixteen Sri Lankan nationals reached Indian shores on March 22 in a bid to escape the situation. The sixteen people came in two batches of six and ten to Dhanushkodi in Rameswaram after a strenuous journey on their boats. The six persons, including three children, were left stranded mid-sea and were rescued by Coast Guard officials on Tuesday, March 22. Ten more persons reached Indian shores late on Tuesday night.

According to the Indian Express, the six persons have been identified as Gajendran (24), his wife Mary Clarine (22), and 4-months-old son; and, Tiori Anistan (28), and her two children aged six and nine. The report stated that the identities of the second group are being verified. It includes three women and five children.

The first batch of six persons had attempted to land at Dhanushkodi by a boat but were forced to disembark midway by the man who agreed to ferry them and were stranded on a sand dune, officials said. Following a tip-off from the police, the Coast Guard rescued them and brought them ashore where an enquiry was on, they added. On receipt of input, ICGS (Indian Coast Guard Ship) Mandapam launched Hovercraft H-181 immediately and later located the six persons.

Mary Clarine said that they were dropped off at the island saying that they will be picked by another boat but none came, prompting them to call for help. “We are coming here due to the economic crisis. We did not bring food or water and had to stay a whole night without food and water.” She also added that her husband is from Erode.

A release from the Coast Guard said: “Upon investigation, it was ascertained that these six Sri Lankan personnel comprising one man, two women and three children were residents of Jaffna and Kokupadaiyan (in Sri Lanka). All six persons were brought to Mandapam hoverport safely. A joint interrogation was carried out upon their arrival. On completion of the interrogation, they were handed over to the Mandapam Coastal Security Group for further action.”

Officials said that the second group of ten persons reached on a fibre boat, and had left the Mannar coast on Monday night and reportedly spent a total of Rs 3 lakh for the journey. After the boat developed a technical issue, they had to spend a day repairing it in the middle of the sea before reaching the Pamban bridge around 9 pm on Tuesday night.

One of the women from the first set of people who reached Dhanushkodi told reporters that they had crossed over to India as prices of many essential commodities were skyrocketing, and they were finding it difficult to manage the situation back home. They also stated that they paid around Rs 50,000 to fishermen who dropped them on the fourth island off Arichal Munai within Indian waters. “Many more families are finding ways to flee to India due to the acute shortage of food and fuel, and lack of income”, they added.

“We don’t know who takes us here or who sends us here. We got this person’s contact through a relative of ours. There were not many boats on that shore, but there was only one boat waiting for us”, another woman said.

According to reports, India had extended a $1 billion credit facility to Sri Lanka, which is in the midst of a severe economic crisis, on March 17. President Gotabaya Rajapaksa had also said that the government would work with the International Monetary Fund to manage the crisis.

ALSO READ-China turns its back on Sri Lanka’s economic woes

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‘India-funded MRCC threat to Lanka’

“While Hambantota harbour is given to China, a MRCC has been set up in the same area. This is a foolish decision that would lead to a war,” Fernando claimed….reports SUSITHA FERNANDO

Sri Lanka’s opposition has charged that India-funded Maritime Rescue Coordinating Centre (MRCC) is a threat to the country’s security and might lead to geopolitical clash with China.

Main Opposition, United People’s Power (UPP) MP Harin Fernando claimed that under the project, entire Sri Lankan airspace is sold to India under the guise of a security system.

Sri Lanka Cabinet announced on Tuesday that approval has been given to build a MRCC in Sri Lanka with a grant of $6 million from India. President Gotabaya Rajapaksa who is also the Defence Minister has presented the proposal and a MoU is to be signed between Lanka government and an Indian Government-owned aerospace and defence electronics company, Bharat Electronics.

Claiming that the government was selling national resources to foreign countries, MP Harin Fernando said the proposed MRCC would be set up inside the Sri Lanka Navy Headquarters and eight other sub-units will be positioned around the country including one in Hambantota, where the China-run harbour is positioned.

“While Hambantota harbour is given to China, a MRCC has been set up in the same area. This is a foolish decision that would lead to a war,” Fernando claimed.

The MP also said under the agreement India is to provide three Dornier maritime surveillance aircraft to Sri Lanka, while the Sri Lanka Navy is to receive a 4,000 MT floating barge from India.

Responding to the Opposition’s allegation, Joint Cabinet Spokesperson Minister Ramesh Pathirana denied selling of national resources to India and said the agreement will focus on increasing bilateral relations and training programme between India and Sri Lanka. He said the agreement is would be submitted to Parliament before it is signed.

Meanwhile, MP Fernando also alleged that allowing India to have the digital identities including biometrics of all Sri Lankans with the project Unified Digital Identity Framework is a threat to all Sri Lankans. “The digital identities of all Sri Lankans will be in the hand of India,” he complained.

The Cabinet on Tuesday announced that an MoU is to be signed between India and Sri Lanka with regard to implement Sri Lanka Unified Digital Identity Framework on an Indian grant of Indian Rs 300 million.

Meanwhile Leader of the Opposition MP Lakshman Kiriella in Parliament accused Finance Minister Basil Rajapksa of signing agreements with India secretly while keeping the parliament in the dark.

“Basil Rajapaksa who has not attended parliament for last three months is selling resources to India to buy food,” MP Kiriella said in Parliament on Tuesday.

However, addressing the Parliament, former Prime Minister Ranil Wickremesinghe noted that it was fortunate to receive such amount of money from India at this difficult period but government has a responsibility to be transparent.

“This is special as this is the first time that India has helped Sri Lanka in this way. However, there are various stories that are spread about this. There is a responsibility on the part of Finance Minister or the Foreign Minister to clarify on this,” Wickremesinghe said.

ALSO READ: Army deployed in Lankan fuel stations

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Army deployed in Lankan fuel stations

Three people died with one person killed in recent days while standing in the fuel queues in different parts of the country…reports Asian Lite News

Army personnel were deployed at all fuel stations run by Sri Lanka’s state-owned Ceylon Petroleum Corporation on Tuesday amidst a shortage that led to long queues of consumers.

Military spokesman Nilantha Premaratna said that military personnel were deployed to monitor the distribution of fuel at the filling stations and maintain law and order among the consumers, reports Xinhua news agency.

He said two military men were deployed at every fuel station as people had to stand in queues for as long as several hours.

Three people died with one person killed in recent days while standing in the fuel queues in different parts of the country, leading to a tense situation in several areas.

The government has assured that fuel would be distributed sufficiently and the required stocks were now arriving without disruption in the country.

Sri Lanka is facing a fuel shortage due to a foreign exchange crisis which the government says is being resolved by seeking economic relief from friendly nations.

ALSO READ: Lankan inflation hits new high

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India steps up game in Sri Lanka

India is also expected to extend a food and health security package to Sri Lanka on an urgent basis, along with an energy security package and currency swap, and also push Indian investments, writes Asad Mirza

Indian policy in the region towards smaller countries, seems to be paying dividends, as compared to China, which is more and more is being seen as a hawk, intent on taking over smaller countries natural resources.

The recent example of this is the manner in which India has handled Sri Lanka, a neighbour under extreme financial burden. Ties between two neighbours expanded to another level during the visit to India by Sri Lankan Finance Minister Basil Rajapaksa. He met Finance Minister Nirmala Sitharaman and External Affairs Minister S. Jaishankar in New Delhi. Later, an announcement was made of a $1 billion credit facility to Sri Lanka on March 17, which is in the midst of a severe economic crisis triggered by a shortage of foreign exchange.

In his tweet after the meeting, Jaishankar reiterated importance of India’s “Neighbourhood first” policy.

Indian largesse

Indian assistance in the last six months comprises of; a $500 million oil line of credit; $1 billion line of credit for essentials to be imported from India; currency swap of $400 million; deferral of $515 million under Asian Clearance Union; 40,000 MT of fuel on credit; 100,000 Rapid Antigen Test kits and supply of 1,000 tons of liquid medical oxygen, according to reports.

India is also expected to extend a food and health security package to Sri Lanka on an urgent basis, along with an energy security package and currency swap, and also push Indian investments.

India’s NTPC last week also signed an agreement for setting up a solar plant in Sampur in the eastern province of Trincomalee, while the Adina group has signed up for another wind/solar project in the Mannar and Ponneryn areas of northern Sri Lanka. Indian Oil’s subsidiary Lanka India Oil Corporation and Ceylon Petroleum have signed an agreement to jointly develop the Trincomalee Oil Tank Farm. Delhi is also pushing for joint development of the Palaly airport and Kankesanthurai harbour in the northern Jaffna peninsula.

Sri Lanka Economic Crisis

As per a report of the Financial Times, the Sri Lankan Economic disaster was partly manmade as pointed out by former CBSL Deputy Governor Wijewardana, blaming the government for making serious policy errors when it announced an unsolicited, attractive tax concession to income taxpayers. The consequence of this extraordinary move was the building up of inflationary pressure in the domestic economy on one side, and the depletion of foreign reserves putting pressure on the rupee to depreciate in the market, on the other.

A substantial drop in tourism-related earnings in 20/21, heavy debt repayments and an increase in pandemic-related expenses, also added to the woes. The result of all this was that 500,000 people according to the World Bank have fallen below the poverty line, whilst food inflation hit 21 per cent. Dependence on oil has further aggravated its problems after the start of the Ukraine crisis.

Political Crisis

On March 17, as his brother Basil Rajapaksa arrived in Delhi, Sri Lankan President Gotabaya Rajapaksa said in an address to the nation that his government would work with the International Monetary Fund (IMF) to tide over the crisis.

This presidential speech came after days of massive protests over the shortages and steep prices that have created day-to-day uncertainties for Sri Lankans across the country. Political observers say that in just over two years, Sri Lanka’s first family has presided over a series of crises mostly of its own making.

Sri Lanka currently is facing its worst economic upheaval in a decade. The badly timed fertiliser ban led to a dramatic fall in yields of crops like rice and tea, added to its failure to deal with a foreign-currency crisis that’s now a humanitarian emergency. Relying until now on help from its two major backers -India and China – and stubbornly refusing wider international aid, the country is on the verge of payments default.

Many regional observers blame Rajapaksa clan for all this. Gotabaya, who won office in the November 2019 presidential elections, appointed his brother, Mahinda, as Prime Minister. Their eldest brother, Chamal, is a Cabinet minister, while his son is a non-Cabinet minister. One of the Prime Minister’s sons is also in the Cabinet, another is his chief of staff, and a nephew is an MP. According to some estimates, about 75 per cent of the budget is under the control of Rajapaksa ministers in government. But the Rajapaksa family has not been able to do what needed to be done to help Sri Lanka out of this mess.

Things are so bad that the brothers’ resistance to seek support from the IMF has softened. Sri Lankan officials began talks with the IMF on March 14 and may present policy proposals by early next month.

There are increasing demands for the government to clearly articulate some concrete solutions. Sri Lanka has asked both Beijing and New Delhi to consider restructuring its debt repayments.

The country is also seeking to negotiate a new loan with China. The Hambantota Port, part of China’s Belt and Road Initiative, is widely viewed as an example of China’s over-ambitious infrastructure drive. Sri Lanka borrowed heavily to build the port, couldn’t repay the loans, and then gave China a 99-year lease for debt relief.

Gotabaya is hardly the unifying figure Sri Lanka needs right now. He’ll continue to be the President till 2024 and the opposition protests are unlikely to loosen his grip on power. Any delay in securing an IMF agreement may bring the country one step closer to being a defaulter, and adding to people’s disenchantment with the Rajapaksas.

India, on its part to build more robust and long-term strategic ties with Sri Lanka, needs a soft approach with added measures crucial to securing stability and preventing conflict recurrence over there on ethnic lines.

(Asad Mirza is a political commentator based in New Delhi. The views expressed are personal)

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Breather for crisis-hit Lanka as tourism revives

A supporter of Gotabaya Rajapaksa cheers along the street in Colombo Sri Lanka.

Earnings from tourism in February were $314.5 million, while the country earned $268 million in January, the data shows….reports Asian Lite News

Sri Lanka earned about $583 million from tourism in the first two months of 2022, compared to $16.4 million in the same period of 2021, according to data from the central bank.

Earnings from tourism in February were $314.5 million, while the country earned $268 million in January, the data shows.

A total of 178,834 tourists visited Sri Lanka by the end of February this year, and it was only 5,047 for the same period in 2021, reports Xinhua news agency.

By March 6, all tourist arrivals amounted to 200,798, which is higher than those in 2021.

ALSO READ: Citizens advised to avoid Lanka travel

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Citizens advised to avoid Lanka travel

It also mentioned the prevalence of Covid-19 and dengue in the country, adding that these might trigger fresh lockdowns, thus leading to flight cancellations…reports Asian Lite News

Responding to the economic crisis caused by foreign exchange depletion in Sri Lanka since the pandemic, the United Kingdom has issued a travel advisory for its citizens travelling to the island nation.

According to Sri Lankan news reports, the latest advisory has warned British citizens about the dire economic situation in that country leading to shortage of basic necessities like medicines, fuel and food.

A report in Daily Mirror, published from Colombo, said the advisory stated, “There may be long queues at grocery stores, gas stations, and pharmacies. Local authorities may impose rationing of electricity, resulting in power outages.”

It also mentioned the prevalence of Covid-19 and dengue in the country, adding that these might trigger fresh lockdowns, thus leading to flight cancellations.

Sri Lanka has been facing a hard currency crisis affecting its imports for some time now due to the pandemic.

Last September, Lankan foreign minister Basil Rajapaksha had called the crisis “dangerous”. The government had by then declared a state of emergency as most of the private banks had been emptied of foreign exchange – affecting import of essential goods.

Import of several luxury goods have since been banned.

In February of this year, the government had appealed to non-resident Lankans to send money home. As per reports, overseas remittances have fallen sharply too.

With the country’s economy heavily dependent on tourism and trade, Sri Lanka has received a huge blow from the lack of travel and other worldwide restrictions brought to tackle the pandemic.

ALSO READ-‘Undercurrents’ of Operation Ganga

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Currency depreciation lands Lanka in soup

The country’s biggest wheat importer PRIMA increased the price of a kg of wheat flour by 35 LKR….reports Asian Lite News

The prices of a number of essential items in Sri Lanka increased on Friday after the country’s central bank allowed the country’s rupee (LKR) to devalue to 230 per US dollar.

On Friday, the All Ceylon Bakery Owners Association increased the price of a loaf of bread by 30 LKR, and the new price of a loaf of bread is between 110 to 130 LKR, reports Xinhua news agency.

The country’s biggest wheat importer PRIMA increased the price of a kg of wheat flour by 35 LKR.

Meanwhile, Lanka Indian Oil Corporation, the country’s second-largest retail fuel distributor, increased the selling price of diesel by 75 LKR per liter and petrol 50 LKR per liter on Thursday midnight.

Three-wheeler and bus owners’ associations claimed that there will be drastic increases in fares with the hike in fuel prices by Lanka India Oil Corporation, demanding a fuel subsidy.

Anjana Priyanjith, chairman of the All Ceylon Private Bus Owners Association, warned that the minimum bus fare will be between 30 and 35 LKR, urging the government to provide a diesel subsidy for private bus owners.

The price of airline tickets was increased by 27 per cent, said Sri Lanka’s Civil Aviation Authority.

The Central Bank of Sri Lanka on Monday allowed the LKR to devalue considering the severity of the external shocks and recent developments in the domestic front.

The LKR on Thursday depreciated to 260 per US dollar from 200 per dollar before depreciation.

ALSO READ: Lanka woos foreign investors

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Lanka woos foreign investors

Sri Lanka’s state-owned investment agency the Board of Investment (BOI) last week said the country is aiming to attract $3 billion in the FDI by 2026…reports Asian Lite News

 Sri Lanka’s cabinet of ministers on Tuesday approved a proposal to issue long-term visas for tourists interested in investing in the island nation.

Minister of Youth and Sports Namal Rajapaksa said in a statement that the proposal was submitted by President Gotabaya Rajapaksa and approved by the cabinet, reports Xinhua news agency.

Namal said the option of long-term visas for keen investors will not only significantly increase Foreign Direct Investments (FDI), but also encourage more professionals and experts to invest, work, and live in Sri Lanka.

Sri Lanka’s state-owned investment agency the Board of Investment (BOI) last week said the country is aiming to attract $3 billion in the FDI by 2026, and the BOI has finalised a strategic plan for the period of 2022 to 2026.

As per the BOI’s plan, export revenue with new investments would reach $15 billion by 2026, and more than 100,000 jobs would be created in the country.

The Central Bank of Sri Lanka.(pic credit: https://www.cbsl.gov.lk )

Sri Lanka allows currency to devalue

Central Bank of Sri Lanka has allowed the country’s rupee to devalue to 230 per US dollar considering the severity of the external shocks and recent developments domestically.

The bank said that it will closely monitor the emerging macroeconomic and financial market developments, both globally and domestically, and will stand ready to take further measures as appropriate, Xinhua news agency reported.

The aim is to achieve stability in inflation, the external sector, the financial sector, and real economic activity, according to the bank.

“In that context, greater flexibility in the exchange rate will be allowed to the markets with immediate effect. The central bank is also of the view that forex transactions would take place at levels which are not more than 230 rupees per US dollar,” it said in a statement.

Earlier the Sri Lankan rupee was pegged to the dollar at 200.

A number of Sri Lankan economists have been urging the government to devalue the rupee in the past few months, stating that this policy was creating forex shortages and parallel exchange rates.

ALSO READ: 32 Lankans evacuated from Ukraine takes toll on India’s defence deals

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32 Lankans evacuated from Ukraine

The Foreign Ministry is also monitoring the status of Sri Lankan nationals in countries which share land borders with Ukraine….reports Asian Lite News

Thirty-two Sri Lankan nationals who were stranded in Ukraine have been evacuated through four separate borders, Lankan Foreign Ministry sources said on Wednesday.

The Foreign Ministry had earlier announced that it was engaged in the evacuation of approximately 40 Sri Lankan nationals, including two students, via the Ukraine-Poland border.

The efforts have been facilitated by the Sri Lanka Embassies in Warsaw (Poland) and Ankara (Turkey), which are concurrently accredited to Ukraine.

The Foreign Ministry is also monitoring the status of Sri Lankan nationals in countries which share land borders with Ukraine.

After Russia launched military operations in Ukraine on February 24, the Foreign Ministry had instructed the Sri Lankan Embassy in Ankara, which is concurrently accredited to Kiev, to take appropriate measures to coordinate the safe passage of the remaining Sri Lankans in Ukraine.

Meanwhile, the Foreign Ministry had also announced that the Sri Lankan Embassy in Moscow, which is concurrently accredited to Belarus, is continuing to be in contact with the approximately 1,600 Sri Lankan nationals, including 1,556 students studying in over eight universities and higher education institutes in Belarus.

“Sri Lanka’s Ambassador in Moscow is in direct contact with the relevant university authorities, student and parent groups, as well as other concerned institutions in Belarus, with regard to the safety and welfare of the Sri Lankan students,” the Foreign Ministry stated.

ALSO READ: Former SriLankan Airlines head appointed as CFO in Jet Airways

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Former SriLankan Airlines head appointed as CFO in Jet Airways

Prior to joining SriLankan Airlines, Gunatilleka was the CFO and Board Member of TAAG Angola Airlines from November 2015 to July 2018 under Emirates Management…reports Asian Lite News

The Jalan-Kalrock Consortium, the successful resolution applicant and proposed promoters of grounded Jet Airways, on Tuesday announced the appointment of Vipula Gunatilleka as its Chief Financial Officer.

Gunatilleka, who was the CEO of SriLankan Airlines until January 2022, will be joining from March 1, 2022, a Jet Airways statement said.

“He has been shortlisted after a rigorous process run by our Executive Team over the last several months. I am certain Vipula will be an asset to the organisation and will provide the necessary vision to revive the operations of Jet Airways as per the plans of the Consortium,” the statement said, quoting Ankit Jalan, Member of the Monitoring Committee of Jet Airways and part of Jalan-Kalrock Consortium.

Prior to joining SriLankan Airlines, Gunatilleka was the CFO and Board Member of TAAG Angola Airlines from November 2015 to July 2018 under Emirates Management.

Commenting on the appointment, Gunatilleka said: “I am very excited to join the company and I look forward to contributing my knowledge of the last 30 years in Jet Airways’ resurgence in its new avatar. We will capitalise on the strong brand value which Jet Airways has in the market and use it to rebuild the lost ground.”

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