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Friday June 2nd, 2023

Sri Lanka local govt polls: president’s party adamant time is not right for elections

ECONOMYNEXT – Amid some lingering uncertainty over the timely conduct of Sri Lank’s local government polls scheduled for March 09, the United National Party (UNP), headed by President Ranil Wickremesinghe, maintains that now is not the time for an election.

UNP parliamentarian Vajira Abeywardena, a long-time Wickremesinghe loyalist, told reporters on Monday January 23 that the party is disappointed that an election is being held at a time that is not conducive to the conduct of an election.

“The election is not a priority for the people. The crisis is still not over,” Abeywardena said, speaking at an event.

Sri Lanka’s national election commission has announced that the local government polls will be held as scheduled on March 09 for 340 municipal councils, urban councils and pradeshiya sabhas. However, accepting nominations for the Kalmunai Municipal Council has been suspended following an interim injunction issued by the Supreme Court.

Both the UNP and sections of the ruling Sri Lanka Podujana Peramuna (SLPP), which have teamed up to contest some of the local bodies, continue to insist that now is not the time for elections, despite both parties submitting nominations and placing deposits for the polls.

The government, however, claims that Sri Lanka cannot afford an election at this juncture. The local government polls is estimated to cost around 10 billion rupees.

Abeywardena said an election is taking place at a time when even government workers’ allowances are being taxed.

“It would’ve been better to stop the election and cancel that tax. The private sector has also collapsed,” he said.

An election in March will also affect tourism, with many more tourist arrivals anticipated between February and April, he said.

“If an election process begins again, tourism businesses and hotels that suffered for three years will collapse once again,” the national list MP said that

“If the country is destroyed once again, it is your future that will be destroyed,” he added.

Meanwhile opposition the National People’s Power (NPP), a leftist outfit headed by the Janatha Vimukthi Peramuna (JVP), who some analysts predict will fare well at the upcoming polls, is adamant that the election go ahead.

NPP legislator Harini Amarasuriya said at a public event that an opportunity has presented itself to end 75 years of “corrupt rule”.

“The 9th is an unlucky day for these rogue leaders. But a very lucky day for citizens.

“March 09 is the day the first step will be taken towards establishing a people-centric administration elected by the people,” she said. (Colombo/Jan23/2023)

Comments (2)

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  1. AZOOR Junaideen says:

    Govt parties are afraid to face the election after damaging the economy thus making it a bankrupt nation. This a good opportunity to signal that the end is near

  2. Sunil says:

    Although it is an election to choose members for local governments, people are showing more interest in this than even a presidential or parliamentary election and are keen to initiate a process to chase away the rogues of the ruling party that has brought the country to its knees within a short span of two and a half years.

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Your email address will not be published. Required fields are marked *

  1. AZOOR Junaideen says:

    Govt parties are afraid to face the election after damaging the economy thus making it a bankrupt nation. This a good opportunity to signal that the end is near

  2. Sunil says:

    Although it is an election to choose members for local governments, people are showing more interest in this than even a presidential or parliamentary election and are keen to initiate a process to chase away the rogues of the ruling party that has brought the country to its knees within a short span of two and a half years.

Sri Lanka to ramp up weekend fuel deliveries after petrol price cut

More deaths reported at Sri Lanka fuel queues

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation will be operating on the weekend to complete all fuel deliveries to end vehicle queues forming outside fuel stations after the price revision earlier in the week, Energy Minister Kanchana Wijesekera said.

“Instructions have been given to CPC and Ceylon Petroleum Storage Terminals to continue fuel deliveries on Saturday and Sunday this week to supply sufficient stocks to all fuel stations,” Minister Wijesekera said in a TWITTER.COM MESSAGE

“To reduce expenses on overtime, CPC and CPSTL have not been operating on Sundays and public holidays in the last 4 months,” Wijesekera said.

“Non-placement of orders by fuel stations from last Saturday, anticipating a price reduction, not maintaining minimum stocks, immediate increase in demand by consumers after the price revision, and quota increase have created shortages in the fuel stations.”

The Minister in April 2023 said all fuel stations would be required to maintain a minimum of 50 percent of stock tank capacity.

“I have asked CPC to review and suspend the license of fuel stations that had not maintained minimum stocks.” (Colombo/ June 02/ 2023)

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Sri Lanka bonds yield up at close, rupee at 291.75/292.50 against the US dollar

ECONOMYNEXT – Sri Lanka’s bonds closed steady on Friday, dealers said, following the central bank’s decision to cut its main policy rate by 250 basis points.

The Spot US dollar closed at 291.75/292.50 rupees, dealers said.

The rupee opened at 290.25/75 to the US dollar Thursday and closed at 292.50/295.50 to the US dollar.

A bond maturing on 15.09.2027 closed at 24.70/90 percent up from 24.50/90 percent a day earlier, dealers said.

A bond maturing on 15.05.2026 closed at 25.75/26.25 percent up from 25.00/26.00 percent a day earlier.

A bond maturing on 01.05.2025 closed at 27.00/30 percent, up from 26.30/27.00 per cent at last close.

A bond maturing on 01.07.2032 closed at 20.25/21.00 percent, up from 20.00/40 per cent at last close.
(Colombo/ June 02/2023)

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Sri Lanka’s shares edge up on positive macroeconomic sentiments

ECONOMYNEXT – Sri Lanka’s shares closed higher in trade on Friday, over positive macro-sentiments encouraging investors to redeem their interest towards buying, an analyst said.

The main All Share Price Index was up 0.72 percent or 62.19 points to 8,753.80,  while the most liquid index S&P SL20 was up 0.68 percent or 16.87 points to 2,487.29.

Sri Lanka’s inflation in the 12-months to May 2023 has eased to 25.2 percent from 35.3 percent a month earlier according to a revised Colombo Consumer Price Index calculated by the state statistics office.

Prior to the Monetary Policy investors were quite optimistic that inflation is to lower and interest rates will decrease and since exp, an analyst said.

Sri Lanka Central Bank is waiting for the government proposal on the domestic debt restructuring (DDR), the central bank governor Nandalal Weerasinghe said amid uncertainty over DDR and speculations over instability in the banking sector.

“On debt restructuring, the borrower is the ministry of finance’s treasury. Certainly we will announce what the strategy will be. We are waiting for a government proposal,” Weerasinghe said.

Sri Lanka’s investors are waiting on assurances to be made on debt restructuring and optimization, Central Bank Governor Nandalal Weerasinghe said, “It is up to the government to clear the uncertainty, because from our side we have done that part.”

The central bank cut the key policy rates by 250 basis points to spur a faltering economic growth as inflation was decelerating faster than it projected.

The speculation of DDR has hit the market and the risk premium has kept the market lending rates well above the central bank’s policy rates. The government has yet to present its plans on DDR.

Weerasinghe said the central bank has done its best to reduce the risk premium through bringing down the market lending rates while keeping the policy rates unchanged.

Sri Lanka’s President Ranil Wickremesinghe has discussed progress of International Monetary Fund program and debt restructuring during a visit of Deputy Managing Director Kenji Okamura, statement said.

“The discussion primarily focused on the progress of the IMF program between Sri Lanka and the IMF,” a statement from President’s office said.

“Attention was also paid to the on-going debt restructuring negotiations.”

However Officials from IMF have said Sri Lanka has to focus on expanding taxes.

“We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability,” Deputy Managing Director Kenji Okamura said in a statement.

The finance ministry this week issued rules requiring everyone above 18 year of age to register to pay income tax.

“I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner.

The market generated a revenue of 738 million rupees, while the daily average was 1 billion rupees.

Top gainers in trade were Vallibel One, LOLC Finance and Browns Investment. (Colombo/June02/2023)

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