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Sunday December 3rd, 2023

EU stresses need of individual rights after Sri Lanka military attack on peaceful protesters

ECONOMYNEXT – The European Union has stressed the need of upholding freedom of opinion and expression and individual rights of Sri Lankan citizens after the military brutally attacked peaceful protesters, a day after President Ranil Wickremesinghe took oath as the leader of the island nation.

The military attacked protesters who were above to hand over the presidential secretariat which they occupied on July 9 just before former leader Gotabaya Rajapaksa fled the country fearing for his file. The protesters then burnt the private house of then prime minister Wickremesinghe and stormed into the prime minister’s official residence four days later.

Wickremesinghe soon after being elected said legal action will be taken against those who have occupied the public properties like presidential secretariat and prime minister’s official residence.

The military attack has raised concern over President Wickremesinghe’s new government’s handling of the protest. Wickremesinghe in the past has been supportive of the protest and voice against removal of the protesters from the same site.

Protesters have said they do not recognize Wickremesinghe as the country’s president because he never got a people’s mandate. Wickremesinghe was elected as the president by the parliament and he entered the parliament through a bonus seat after losing  at the August 2020 parliamentary poll.

“Following Sri Lanka’s Parliament swift action to elect Ranil Wickremesinghe as new President of the country in the wake of President Rajapaksa’s resignation, the EU underlines the need of upholding freedom of opinion and expression and individual rights of Sri Lankan citizens in the process of a democratic, peaceful and orderly transition,” the EU said in a statement.

“In the light of reports of unnecessary violence against protestors, the EU stresses the importance of the right to freedom of peaceful assembly and association and condemns the unwarranted use of force against peaceful demonstrators.”

Wickremesinghe met envoys of the US, UK, Canada, and EU on Friday after the attack. Sources who met him said the new president was more focused on his house and the books, which were burnt by the protesters on July 9 than the bigger political issues.

The EU is Sri Lanka’s major trading partner and its trade concession GSP plus has helped the island nation’s top export garments to earn over $5 billion annually.

The GSP plus is already under review for an extension.

“The re-introduction in 2017 of preferential access to the European Single Market under the GSP+ scheme has been essential for Sri Lanka’s economic development.” it said.

“The EU expects the new Government to work in full compliance with its GSP+ commitments. Current and future cooperation programmes (EUR 70 million) are being aligned with Sri Lanka’s most pressing needs.”

“In addition to delivering medicines through the EU’s Joint Civil Protection Mechanism, member states and the EU are closely monitoring food security on the island in order to fund actions targeting the most vulnerable communities.”

The EU has continuously urged Sri Lanka to address its past human rights violations and take initiatives to prevent such violations in the future as well. The EU insisted to abolish the country’s decades old anti-terrorism law under Gotabaya Rajapaksa, who amended the act to satisfy the bloc.

Sri Lanka is already facing an international probe over its past human rights violations by the United Nations Human Rights Council which has already started gathering evidence.

Diplomats have told Economy Next the brutal attack on protesters is likely to be added to the country’s human rights violation in the upcoming September session. (Colombo/July 23/2022)

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  1. Prageeth says:

    In what way you describe the protest is peaceful? By storming government buildings and destroying it, and being a nuisance to the public or setting ablaze rivals homes?

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  1. Prageeth says:

    In what way you describe the protest is peaceful? By storming government buildings and destroying it, and being a nuisance to the public or setting ablaze rivals homes?

UAE investors express interest in Sri Lanka’s energy, tourism, ports, real estate: Ali Sabry

ECONOMYNEXT – A group of investors based in the United Arab Emirates have expressed their interest in renewable energy, tourism, ports, and real estates, Foreign Minister Ali Sabry told Economy Next.

A Sri Lankan delegation led by President Ranil Wickremesinghe is in Dubai to take part in the 2023 United Nations Climate Change Conference (COP28).

Sabry said a group of large investors met the President on Friday and discussed possible opportunities in Sri Lanka.

“We met big investors here particularly on renewable energy, tourism, port development and also infrastructure development and real estate. That’s where they are doing very well,” Foreign Minister told Economy Next.

“Our embassy will organize a higher-level business delegation to visit Sri Lanka to look at the available opportunities.”

“There is a lot of traction and interest in Sri Lanka.”

Sri Lanka has been exploring to attract investors to crisis hit Sri Lanka which declared bankruptcy in April last year with sovereign debt default.

Since then, most investors have taken a step back from investing in the island nation due to its inability to serve debts and uncertainty over such investments.

Several government officials said investors may start pouring dollars into Sri Lanka very carefully after they see some certainty of debt repayments. (Dubai/Dec 3/2023)

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Sri Lanka to push for green initiative investment “after OCC finalizing” debt deals – President

ECONOMYNEXT – Sri Lanka will push for investment into green initiatives globally after the Official Creditor Committee (OCC) finalizing on the island nation’s debt restructuring, President Ranil Wickremesinghe told Economy Next at the 2023 United Nations Climate Change Conference (COP28).

President Wickremesinghe along with local and global advisors has inaugurated three ambitious projects to convert climate change-led disaster funding, which is mostly seen as donations, into viable commercial enterprises involving private sector investments.

The idea is to rally all the global nations in the Tropical Belt threatened by disasters related to climate change and bargain collectively with advanced economies which emit more greenhouse gases into the environment resulting in global warming for more green initiatives like renewable energy projects.

Wickremesinghe initiated a Climate Justice Forum (CJF), Tropical Belt Initiative (TBI), and called on the world to help establish the International Climate Change University in Sri Lanka.

His moves have been welcomed by global leaders, though analysts said an initiative like TBI is a “bold and imaginary” step.

“This is the first step. We have now put forward the proposal,” Wickremesinghe told Economy Next on Sunday on the sideline of the COP28 in Dubai’s EXPO 2020.

“There is an interest. We have to wait for OCC finalizing (debt restructuring) before pushing for investments.”

HARD INVESTMENTS

Global investors are hesitant to invest in Sri Lanka due to its bankruptcy and sovereign debt default.

Sri Lanka is still recovering from an unprecedented economic crisis which has compelled the island nation to declare bankruptcy with sovereign debt default.

President Wickremesinhe during a forum on Saturday said his initiatives would help government in advanced countries not to use tax money of its own people for climate related disasters in other countries and instead, private sector investors could help by investing in renewable energy initiatives.

President Wickremesinghe’s government has been in the process of implementing some tough policies it committed to the International Monetary Fund (IMF) to stabilize the country and ensure sustainability in its borrowing.

Sri Lanka is yet to finalize the debt restructuring fully as it still has to negotiate on repayment schedule of commercial and sovereign bond borrowing.

The OCC and Sri Lanka had agreed on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF.

The members of the Paris Club which are part of the Official Creditor Committee are representatives of countries with eligible claims on Sri Lanka: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, the United States of America.

The OCC has said it was expecting other bilateral creditors to consent to sharing, in a transparent manner, the information necessary for the OCC to evaluate comparability of treatment regarding their own bilateral agreement.

The OCC also has said it expects that the Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC. (DUBAI/Dec 3/2023)

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Sri Lanka alcohol regulations may be spurring moonshine: Minister

ECONOMYNEXT – Sri Lanka’s alcohol regulations may be reducing access to legal products and driving illegal moonshine sector, State Minister for Finance Ranjith Siyambalapitiya said amid plans to change opening times of retail outlets.

Sri Lanka is currently discussing changing the opening times of bars (retail alcohol outlets), he said.

Sri Lanka’s excise laws may be contributing to the growth of illegal products, Minister Siyambalapitiya was quoted as saying at the annual meeting of Sri Lanka’s excise officers.

Over 20 years legal alcohol sales have grown 50 percent but illegal products are estimated to have grown 500 percent, he said.

It is not clear where the 500 percent estimate came from.

In Kandy there was a bar for every 6,000 persons but in Mullativu there was one for only 990,000 persons and people had to travel 80 kilometres to get to a legal outlet, Minister Siyambalapitiya had said.

However Sri Lanka has a widespread moonshine or ‘kasippu’ industry driven by high taxes on legal products.

The widely used ‘gal’ or special arrack is now around 3,500 rupees and may go up further with a hike in value added tax. About 2000 rupees of the sale price is taxes.

After a currency collapse and tax hikes legal alcohol sales have fallen, leading to local sugar companies burying ethanol, according to statements made in parliament.

An uneven distribution of bars may also be driving people towards alcohol.

Alcohol sales is controlled on the grounds that it is an addictive product which can lead to poverty, ill-health, bad behaviour and criminal activities, though advocates of high taxes ignore the poverty angle.

High taxes are promoted by temperance movements some of whom have called for outright prohibition in the last century.

Temperance movements spread among evangelical groups in the West and were also embraced by nationalists/moralists and independence movements in colonial authorities.

Prohibition in the US however led to more criminal activity as an organized crime took to bootlegging. (Colombo/Dec03/2023)

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