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Tag: Lanka

  • Ex-Prez, PM urge Lanka govt to get closer to India

    Ex-Prez, PM urge Lanka govt to get closer to India

    Former President Maithripala Sirisena, who had initiated the idea of an APC, too suggested that Sri Lanka should get the support of India and other friendly nations….reports Asian Lite News

    At Sri Lanka’s All Party Conference (APC) held in a bid to come out of one of worst economic crises in its history, a former President and an ex-Prime Minster insisted that Sri Lanka should take the help of India and other friendly nations.

    Presenting his solutions to the current crisis, former Premier Ranil Wickremesinghe said, “The only way for us now is to make an agreement and get closer to the selected friendly nations. They include India, Japan, China and European Union.”

    Meanwhile, former President Maithripala Sirisena, who had initiated the idea of an APC, too suggested that Sri Lanka should get the support of India and other friendly nations.

    President Gotabaya Rajapaksa, who invited all the political parties to rally around the APC to find solutions to the present economic crisis, led the APC on Wednesday, but the main opposition — United People’s Power led by Sajith Premadasa — and the Marxist outfit Janatha Vimukthi Peramuna refused to join it, claiming that the government was not genuine with its intentions and the APC was just an eyewash for the present crisis.

    Government affiliated and Tamil represented Ceylon Workers Congress (CWC), parties representing the Muslim community and a number of other outfits too boycotted the APC.

    However, the United National Party (UNP) represented by its only MP and leader Ranil Wickremesinghe, Sri Lanka Freedom Party led by former President Maithripala Sirisena and the Tamil National Alliance (TNA), the country’s main Tamil national party based in the North and the East, joined the APC.

    Forwarding TNA’s proposals for economic recovery, MP M.A. Sumanthiran stated that Tamil diaspora funding to support ailing economy could be a real possibility and assured that the party could act as a bridge to negotiate with the Tamil people abroad, who are willing to bring in their funds and invest in the country.

    However, MP Sumanthiran representing the former war-torn Northern peninsula claimed that there should be power devolution to the ethnic issue.

    “There is no development without devolution. That needs to be done and we can move forward,” he stated.

    As suggested by several parties, Finance Minister Basil Rajapaksa announced that a new budget with concessions to financially-burdened people would be presented by next month.

    ALSO READ: Lanka, US vow to ensure maritime safety in Indian Ocean

  • Lanka, US vow to ensure maritime safety in Indian Ocean

    Lanka, US vow to ensure maritime safety in Indian Ocean

    The US Representative also stressed on conducting the Provincial Council (PC) election, which had been delayed since 2018….reports Asian Lite News

    During the visit of the US Under Secretary of State for Political Affairs, Victoria Nuland on Wednesday, Sri Lanka and the US resolved to continue cooperation on maritime security and work together to ensure a safe maritime domain in the Indian Ocean through the rules-based international order.

    “The US strategy towards a free, open and prosperous Indo-Pacific region, which promotes freedom of navigation and over flight, was noted as an important initiative,” said the US and Sri Lanka in a joint statement.

    Following visits to India and Bangladesh, Nuland was in Colombo on Wednesday with an interagency delegation, including Assistant Secretary of State for South and Central Asian Affairs Donald Lu, and Principal Deputy Assistant Secretary of Defense for Indo-Pacific Security Affairs Amanda Dory, for meetings with the Sri Lankan government, business and civil society leaders.

    US Under Secretary of State for Political Affairs, Victoria Nuland in Sri LankaPic credits @UnderSecStateP

    US Under Secretary of State for Political Affairs and Lanka’s Foreign Affairs Minister, G. L. Peiris co-chaired the fourth US-Sri Lanka Partnership Dialogue which addressed on strengthening of democratic institutions, human rights, sustainable economic development, mitigating climate change, deepening trade and investment ties, regional security and educational cooperation.

    During the talks, Sri Lanka and the US welcomed ongoing bilateral defense and security sector cooperation, including joint military engagements, human rights training for Sri Lankan officers, and exchange of visits, including by the US ships and military officials.

    The US also has decided to further expand counter-terrorism cooperation with Sri Lanka.

    Victoria Nuland also welcomed President Gotabaya Rajapaksa’s meeting with the main Tamil party, Tamil National Alliance (TNA) on Friday.

    Following several postponements, Rajapaksa has agreed to meet the TNA MPs to talk about the issues of Tamil people in Sri Lanka.

    US Under Secretary of State for Political Affairs, Victoria Nuland in Sri LankaPic credits @UnderSecStateP

    The US Representative also stressed on conducting the Provincial Council (PC) election, which had been delayed since 2018.

    The TNA is pushing for the 13th Amendment to the Constitution, an outcome of the India-Sri Lanka Accord of 1987 signed between former Sri Lankan President J.R. Jayawardene and former Indian Prime Minister Rajiv Gandhi.

    PC election is also a result of the 13A pushed by India which aimed to promote devolution of powers.

    Nuland also commended Sri Lanka’s decision to move to the International Monetary Fund to solve the ongoing financial crisis in the country due to debt repayment, dollar crunch and massive inflation. She assured the US support in this regard.

    ALSO READ: Lanka ends ban on forex transactions

  • Lanka ends ban on forex transactions

    Lanka ends ban on forex transactions

    This new direction is expected to play a role in ending shortages of goods in the country….reports Asian Lite News

     The Sri Lankan central bank has lifted a ban on foreign exchange transactions and allowed banks to provide forward sale and purchase of foreign exchange facilities to importers.

    Forward sale and purchase of foreign exchange are contractual agreements between two parties to exchange a pair of currencies at a specific time in the future, Xinhua news agency reported.

    This new direction is expected to play a role in ending shortages of goods in the country.

    On April 25, 2021, the central bank prevented commercial banks from selling dollars to customers for future transactions, causing significant issues for importers who found it difficult to order goods from abroad.

    This move comes in the wake of a decision by the central bank to allow the Sri Lankan rupee to depreciate earlier this month.

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

  • Fleeing woes, first batch of Lankan refugees reach TN

    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

  • ‘India-funded MRCC threat to Lanka’

    ‘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

  • Army deployed in Lankan fuel stations

    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

  • Lankan inflation hits new high

    Lankan inflation hits new high

    The higher inflation for the month of February 2022 was mainly due to the higher price levels in both food and non-food categories…reports Asian Lite News

    Sri Lanka’s Department of Census and Statistics announced that the overall rate of inflation for February 2022, as measured by National Consumer Price Index (NCPI) on year-on-year basis, stood at 17.5 per cent, the highest since 2015.

    The NCPI has weights based on consumer spending in the 2012/13 Household Income and Expenditure Survey and reflects new methods consistent with the best international practices, reports Xinhua news agency.

    Inflation calculated for January 2022 was 16.8 per cent.

    The higher inflation for the month of February 2022 was mainly due to the higher price levels in both food and non-food categories.

    The year-on-year inflation of the food category increased to 24.7 per cent in February 2022 from 24.4 per cent in January 2022, and that of the non-food group rose to 11 per cent in February 2022 from 10.2 per cent in the previous month.

    Meanwhile, battered by “worst-ever” financial crisis since independence, Sri Lanka’s President Gotabaya Rajapaksa has talked to the international financial institutions including the International Monetary Fund (IMF) and other countries on loan repayment.

    In a special address to the nation on Wednesday night, President Rajapaksa said that talks have been started with IMF to find a way to pay off annual loan instalments and sovereign bonds.

    “Subsequent to my discussions with the IMF, I have decided to work with them after examining the advantages and disadvantages,” the President said in the address which was telecast on all television stations in the country. Going to the IMF was a complete reversal from his government’s earlier stance.

    In his speech President Rajapaksa vowed to take “tough” decisions to solve the inconveniences faced by people and said that a National Economic Council and an Advisory Committee have been appointed find ways to overcome the financial crisis.

    South Asian island-nation’s debt ridden economy suffers with a severe food, fuel, power, transportation and medicine shortages with long queues at fuel stations, gas stations and hours of daily power cuts.

    ALSO READ: Bilawal says Imran favoured Modi during 2019 polls

  • China mulls $2.5 bn financial aid to Lanka

    China mulls $2.5 bn financial aid to Lanka

    China announced Sri Lankan government’s request for financial support in the backdrop of last Thursday’s Sri Lanka signing of $1 billion credit line with India…reports Asian Lite News

     Days after India announced a $1 billion line of credit to financially strapped Sri Lanka, China on Monday said that Beijing is studying Colombo’s request for a $2.5 billion financial assistance.

    Chinese Ambassador to Sri Lanka, Qi Zhenhong said new request for $1 billion financing facility and $1.5 billion buyer’s credit were raised by Sri Lankan government to Chinese government recently.

    “China understands the urgent need of Sri Lanka and its people. Relevant authorities in China are promptly studying the request,” the Ambassador said at a media briefing in Colombo.

    China announced Sri Lankan government’s request for financial support in the backdrop of last Thursday’s Sri Lanka signing of $1 billion credit line with India in the presence of visiting Sri Lankan Finance Minister Basil Rajapaksa.

    The Indian credit line was for the procurement of food, medicines and other essential items at a time when the island nation is facing worst-ever economic crisis with dollar crunch leading lack of essential items such medicine, dairy products, fuel, gas resulting complete break of transportation and long hours of daily power cuts.

    Speaking to the media in Colombo, the Chinese Ambassador on Monday announced details of various financial assistance provided to Sri Lanka and said $1 billion term financing facility ($500 million on March 2020 and $500 million in April 2021) was provided by China Development Bank (CDB) to Sri Lankan Finance Ministry to support Sri Lanka fighting Covid-19 and reviving the economy.

    In August 2021, $300 million term financing facility was provided by CDB and $1.5 billion bilateral currency SWAP agreement was signed between the People’s Bank of China (PBoC) and the Central Bank of Sri Lanka (CBSL) in March 2021, to stabilise the forex level of Sri Lanka, Ambassador Qi Zhenhong said.

    The Beijing representative also told media that China is the biggest source of FDI for Sri Lanka with SL’s Central Bank’s annual report record by the end of 2020, the stock of China’s Foreign Direct Investment (FDI) into Sri Lanka was $2,188 million.

    ALSO READ: India steps up game in Sri Lanka

  • Debt-ridden Lanka seeks helping hands

    Debt-ridden Lanka seeks helping hands

    Started with the Easter Sunday bombing in 2019 followed by the Covid-19 pandemic, Sri Lanka is currently facing a sever foreign exchange crisis with foreign reserves fell to $ 2.36 billion as of January….reports Asian Lite News

    Battered by “worst-ever” financial crisis since independence, Sri Lanka’s President Gotabaya Rajapaksa has talked to the international financial institutions including the International Monetary Fund (IMF) and other countries on loan repayment.

    In a special address to the nation on Wednesday night, President Rajapaksa said that talks have been started with IMF to find a way to pay off annual loan instalments and sovereign bonds.

    “Subsequent to my discussions with the IMF, I have decided to work with them after examining the advantages and disadvantages,” the President said in the address which was telecast on all television stations in the country. Going to the IMF was a complete reversal from his government’s earlier stance.

    In his speech President Rajapaksa vowed to take “tough” decisions to solve the inconveniences faced by people and said that a National Economic Council and an Advisory Committee have been appointed find ways to overcome the financial crisis.

    South Asian island-nation’s debt ridden economy suffers with a severe food, fuel, power, transportation and medicine shortages with long queues at fuel stations, gas stations and hours of daily power cuts.

    Started with the Easter Sunday bombing in 2019 followed by the Covid-19 pandemic, Sri Lanka is currently facing a sever foreign exchange crisis with foreign reserves fell to $ 2.36 billion as of January.

    To save foreign currencies, the government last week blocked the importation of over 360 non-essential imports including milk products, fruits, fish footwear and wine. This was in addition to the ban imposed on motor vehicles which India is a major stakeholder and other items such as mobile phones, ceramic items since March 2021.

    In 2022 the country has to pay $6.9 billion in loan instalments and sovereign bonds.

    President Rajapaksa addressed the nation on the day when his brother and Finance Minister, Basil Rajapaka is on a visit to India met India’s Prime Minister Narenda Modi with plans to obtain $1 billion emergency financial assistance to get essentials such as food, medicines and fuel. Basil Rajapaksa also met with India’s Foreign Secretary, Harsh Vardhan Shringla in New Delhi.

    Since the crisis, India has helped Sri Lanka with a $400 million RBI currency swap, $500 million loan deferment and another $500 million Line of Credit for fuel imports.

    ALSO READ: Breather for crisis-hit Lanka as tourism revives

  • Breather for crisis-hit Lanka as tourism revives

    Breather for crisis-hit Lanka as tourism revives

    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