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Saturday December 2nd, 2023

Sri Lanka needs to ramp up daily PCR testing to 40-50,000 a day: Dr Rannan-Eliya

ECONOMYNEXT – With up to 500 new COVID-19 cases reported every day, Sri Lanka ought to conduct 40,000 to 50,000 PCR tests a day, well above the current rate of less than 12,000, if it is to successfully contain the ongoing outbreak, a leading epidemiology expert said.

Executive Director and fellow of the Institute for Health Policy (IHP) Dr Ravindra Rannan-Eliya has called for increased testing in order to contain the outbreak without resorting to lockdowns.

“During the past six months, the World Health Organisation (WHO) has suggested various testing levels as being adequate, ranging from 1 test per 1,000 people each week to 30 tests for every positive case detection. These translate into rates of 3–15,000 tests/day in Sri Lanka currently. Our assessment is that these guidelines do not have a strong evidence base, and that these levels of testing are too low to achieve and maintain elimination, which needs to be our goal if we are to avoid lockdowns as desired by our President,” Dr Rannan-Eliya, a public health expert as well as an economist, wrote in a post written for the IHP blog yesterday.

EconomyNext spoke to Dr Rannan-Eliya via email yesterday on his expert views on Sri Lanka’s response to the new wave of COVID-19 that has now surpassed 10,000 cases in a period of just one month.
Excerpts follow, with some light editing for clarity.

EN: Do you think Sri Lanka can afford the economic losses that will occur from not increasing testing?

RR: The money [for increased testing] is available. The initial cost/forex requirement of expanding machine capacity (USD 7-10 million) can be easily financed by the current World Bank COVID project (USD 128 million). In the longer-term, this is not a cost. By keeping transmission at low levels, the additional profits that local business will generate by not having to endure lockdowns and reduced consumer confidence (and labour shortages as EconomyNext reported is occurring in the tea sector), and the additional income taxes and VAT that Treasury will collect will pay for the operating costs more than several fold.

There will, however, be a political cost for the Samagi Jana Balavegaya (SJB) and others. I note that President Trump almost certainly lost re-election because of mismanagement of COVID-19. It will be very bad news for the opposition if the government increases testing as we propose, and can get the economy back to growth as a result.

EN: What is your opinion on the antigen test? Will it help meet our testing requirements and be compatible with Sri Lankan requirements?

RR: The performance of antigen tests varies a lot between manufacturers and also depending on how they are used. Without proper testing, I cannot say how good the particular kit is that the Ministry of Health (MOH) has imported. Overall, they are not as good as PCR testing in detecting new cases, and performance also depends on how they are used. To slow transmission, we need to maximise our ability to detect cases.

Antigen tests will not be as good at doing this. So 1,000 antigen tests will be not as effective as 1,000 PCR tests. So, long term, we need to rely on PCR testing. However, we now have a serious problem because our PCR capacity is limited, so we have no option but to use other inferior methods such as antigen tests to compensate until the MOH installs the increased PCR capacity.

EN: Regarding the current situation in the country, do you think we are still not at the community spreading level? MOH Epidemiology Head Dr Sudath Samaraweera said even though the number of patients increased, the patient count in the Gamapaha district is dropping. What is your take on that?

RR: The Epidemiology Unit is using the term “community spread” as defined by WHO where it refers to whether the origin of cases can be identified. As I have explained before, I do not think that we should rely on the WHO classification, and as a scientist i do not find it helpful for COVID-19.

I would rather not get into this discussion because I think we and the media are pushing the MOH into a corner. They are probably afraid of the political implications of changing WHO categories. Frankly, if the MOH wants to use the term “community spread”, I think they would be smarter to defuse the situation by using the term to classify individual cases as, say, Australia does, and not try to pigeonhole us into a WHO category which may have political implications.

That is, they should in future simply report how many cases are (i) imported, (ii) local cases of known origin, and (iii) community spread cases where the origin is unknown. Then we can get on with focusing on the number of overall local cases and the level of transmission, which is what really matters.

Regarding the Gampaha question, the real issue is that we see no evidence of nationwide transmission slowing. We have been detecting a steady 400-500 new cases/day for some time, and we can also see that PCR testing has been stuck at about 10,000 tests/day. There is a possibility that the real number of new cases is increasing, but we are no longer able to detect this because we cannot increase PCR testing.

EN: How effective is the current strategy of the government? In your opinion, do we need to go for a different strategy?

RR: Some components are very good, but the overall strategy has clearly failed.

The border closure in March, which I should point out was only put in place at the urging of medical experts like myself and the Government Medical Officers Association (GMOA), was a good decision. The very effective quarantine facilities and contact tracing and isolation led by the military and intelligence services have been world class, and we should be grateful. But there has been one consistent and enormous failure in the overall strategy, which will undermine all the other good efforts. That is the failure to build up PCR testing capacity after April as other countries did, and the failure to start routine testing of all patients with respiratory symptoms, coughs, colds or fever. There has been enormous resistance in many parts of the MOH and in my profession, to the idea that high levels of testing were needed for COVID-19 control, and this resistance has cost us dearly.

EN: What is your position on not conducting PCR tests on people who have passed the 14-day quarantine period?

RR: The risk that international arrivals who have not displayed symptoms for 14 days in quarantine are not infectious is low, but the scientific evidence does not exist that allows us to say with 100 percent confidence that the risk is zero. Some countries that have had 14-day quarantine with PCR testing have had outbreaks which they suspect were caused by undetected cases getting through quarantine. So in a situation where the goal is elimination and we have PCR testing capacity, then it is safer to err on the side of caution and test. I note that New Zealand continues to do this. However, we have now run out of PCR testing capacity. Given this we may need to prioritise, accept increased risks for now, and use our limited testing capacity instead for detecting community cases.

EN: Does the new coronavirus lose its ability to infect other people after 10-14 days of infection?

RR: In cases where the person is very sick, infectiousness can last a lot longer than 14 days, and this has been well documented since at least March. But I think you are referring to cases where the person has no symptoms or only mild symptoms, where the risk of infection after 14 days is very low.

However, as I explained, we do not have scientific evidence to say that it is zero. I think some doctors are pointing to a recent US CDC assessment that it is zero. However, if you read the CDC document carefully, their conclusion is based on one Taiwanese study which did not have a large sample, and so was not able to conclusively determine that the risk was zero. The CDC also noted one other Chinese study which suggested that people could remain infectious for much longer.

The way I would interpret this is that the CDC is primarily trying to provide guidance in a country – the USA – where the virus is rampant, infecting hundreds of thousands every day, and where the President’s own Chief of Staff is on record as saying they have given up trying to control the virus. In this context, they only worry about minimising risk and not about getting risk to zero, so they can afford to accept a low level of risk. As a country which until recently had near zero cases, we need to take a harder look at the same evidence. (Colombo/Nov10/2020)

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Sri Lanka bondholders seek official creditor deals, says slow progress on talks

ECONOMYNEXT – Sri Lanka’s bondholder group has called for sharing terms of agreements-in-principle made with China and Paris Club led creditors, and said that no “substantive” negotiations have taken place so far.

“The Group finds it regrettable that there remains such a significant lack of transparency on the part of official sector creditors despite the Group’s efforts so far to act as a constructive counterparty,” the representative group of bondholder said in a statement.

“The Group has expressed support for Sri Lanka’s efforts since February 2023, has been forthcoming and transparent with official stakeholders at every stage of the process, and has repeatedly made efforts to engage with the Sri Lankan authorities and its advisors in good faith.

“Transparency between creditors is critical for the private sector to reach an agreement compliant with the parameters of Sri Lanka’s IMF programme’s first review, and one that provides fair and equitable debt treatment.

“Unfortunately, no substantive engagement has taken place between Sri Lanka and its private creditors to date.”

Some official sources indicate that the focus was on getting over the official creditor hurdle.

Sri Lanka rejected an initial proposal by bondholders for restructured bonds linked to the performance of dollar gross domestic product.

The full statement is reproduced below:

Ad Hoc Group of Bondholders statement on progress in Sri Lanka’s debt restructuring

The Ad Hoc Group of Bondholders (the “Group”) of the Republic of Sri Lanka (“Sri Lanka”) notes the statements released by the Official Creditor Committee (“OCC”) and the Sri Lankan Ministry of Finance on November 29, 2023 on the agreement-inprinciple (“AiP”) reached between Sri Lanka and the OCC. The Group welcomes progress on the restructuring of official claims, as uncertainty around the treatment of these claims has hindered Sri Lanka’s recovery.

At this point, the terms of the AiP reached between the Sri Lankan authorities and the OCC on the one hand, and China Exim Bank, an official sector creditor, on the other hand on October 11, 2023, have not been shared. The Group finds it regrettable that there remains such a significant lack of transparency on the part of official sector creditors despite the Group’s efforts so far to act as a constructive counterparty.

Transparency between creditors is critical for the private sector to reach an agreement compliant with the parameters of Sri Lanka’s IMF programme’s first review, and one that provides fair and equitable debt treatment.

The Group has expressed support for Sri Lanka’s efforts since February 2023, has been forthcoming and transparent with official stakeholders at every stage of the process, and has repeatedly made efforts to engage with the Sri Lankan authorities and its advisors in good faith.

Unfortunately, no substantive engagement has taken place between Sri Lanka and its private creditors to date.

The Group remains committed to reaching an agreement with the Sri Lankan authorities as quickly as possible to find a sustainable solution to Sri Lanka’s debt challenges as they relate to the international bond debt.

The Group is advised by Rothschild & Co and White & Case LLP as financial and legal advisors, respectively.

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With criticism, Sri Lanka leader strongly pushes for CJF, investment in TB at COP28

ECONOMYNECT – Sri Lanka President Ranil Wickremesinghe strongly pushed for a Climate Justice Forum (CJF) and investments in Tropical Belt and criticised the slow action against climate change-led disasters at the 2023 United Nations Climate Change Conference (COP28) held in Dubai.

This year’s climate summit features a raft of issues for countries working to find common ground in tackling climate change, including whether to phase out fossil fuels and how to finance the energy transition in developing countries.

Wickremesinghe speaking on Friday said Sri Lankans are already feeling the impact.

“Sri Lanka is experiencing a palpable rise in ambient temperature; continuous gray skies; heavy rains that are not seasonal; lightning and thunderstorms; and as a consequence, flooding of riverbanks and earth slips in the mountains,” he told the gathering.

“Let me reiterate, each year, the costs of mitigating these recurring calamities in terms of lives, livelihoods, displacement destruction, rebuilding is an additional burden on our thinly-stretched economies.”

“Remember, the developing countries are both disproportionately vulnerable and disproportionately impacted – due to their lower adaptive capacity when it comes to investments in Finance, Technology and Climate.”

Here is the full text of Sri Lanka President Wickremesinghe’s speech at the COP 28: 

Mr. President

Excellencies

Esteemed Delegates

At the outset let me congratulate the Government of the United Arab Emirates for hosting COP28 and extend to you my gratitude for your warm hospitality.

It was in 1972 the world first focused on the environment -The UN Conference on Human Environment which enunciated the goal of defending and improving the environment for present and future generations.

50 years later, the Stockholm+50 Report concluded that limiting global warming to 1.5 degrees Celsius requires rapid and large-scale reduction of carbon emissions.

The UNEP Report of 2023 “Broken Promises” warned that we are facing a 3 degree Celcius increase in global temperatures by the end of the century.

We are already feeling the impact. Sri Lanka is experiencing a palpable rise in ambient temperature; continuous gray skies; heavy rains that are not seasonal; lightning and thunderstorms; and as a consequence, flooding of riverbanks and earth slips in the mountains.

Let me reiterate, each year, the costs of mitigating these recurring calamities in terms of lives, livelihoods, displacement destruction, rebuilding is an additional burden on our thinly-stretched economies.

Remember, the developing countries are both disproportionately vulnerable and disproportionately impacted – due to their lower adaptive capacity when it comes to investments in Finance, Technology and Climate.

The Independent High-Level Expert Group Report on Climate Finance highlighted that at least a US$ Trillion per annum is required to combat climate change.

At the last COP held in Egypt, we agreed to establish the “Loss and Damages Fund”.

However, the Transitional Committee on the Operationalisation of Funding Arrangements in its Report of 4th November 2023 only calls for voluntary contributions.  

The Report makes no mention of the funds needed or who the contributors are. It is silent on the issue of global debt relief.

Nevertheless, four days later, the Technical Dialogue of the First Global Stocktake highlighted the requirements of a minimum of US$ trillion per annum. To arrive at a consensus not to take up a contentious issue is not a solution. Who are we fooling?

We are denied climate justice. In this background, Sri Lanka will propose a resolution for a Climate Justice Forum which was agreed upon at the 5th Forum of the Ministers of Environmental Authorities of Asia Pacific to be moved at the UN Environment Assembly of 6thFebruary 2024.

The Climate Justice Forum will provide us a platform for constructive and proactive engagements.

Since 1972, the Brussels Group has been fighting a rearguard action on climate change mitigation. This forum will give us an opportunity to address their genuine concerns.

To address the issue   of ensuring that the tax payers monies are not wasted.

As the Secretary General of the UN said, “the era of global boiling has arrived”.

The enemy is at the gates. We are still procrastinating. We are still forming our battalions to take the fight to the enemy.

Therefore, this fortnight is critical.

It will determine whether we are capable of providing leadership to mitigate climate crisis or not. Sri Lanka is committed to the 1.5 degree Celcius limit.

We must act immediately to find effective solutions. We must think outside of the box. We must Invest in the Tropical Belt to tackle the Triple Planetary Crisis.

The Tropical Belt constitutes 134 countries covering 44% of earth’s surface, and will by 2030s be home to roughly 50% of world’s population.

Most of the world’s remaining primary forests are tropical, along with its coral reef systems.

The rich biodiversity of the Tropical Belt enhances biological carbon sequestration andcan shield the world from instabilities inweather.

Furthermore, the energy generation potential from solar, wind and biomass are significantly higher in the tropics than that of other areas on the earth.

Yet, anthropogenic activities  

human activities that cause

pollution – in the Tropical Belt can easily lead to an imbalance in the equilibrium of this region.

So much so that some scientists predict that the  Tropical Rain Belt could shift away from the Equator by the 22nd Century.

Large scale investments in Renewable Energy, Pollution Control and Nature-based Solutions. Eg. Protection, restoration and improved management of forests, wetlands, grasslands etc. will lead to significant transformative changes in the entire world by enhancing carbon sequestration.

Therefore, Sri Lanka and other concerned parties will convene a panel to report on the Tropical Belt Initiative.

A multi sector plan distributed not only among the whole tropical region but the whole world.

As the current Chair of the Indian Ocean Rim Association (IORA), Sri Lanka is focusing on the interdependence between the Indian Ocean and climate change.

A healthy ocean generates oxygen and absorbs the carbon and heat produced from global warming. Mangroves and seagrasses sink more carbon than land forests. However, rapid climate change is altering the marine environment with rising sea levels and temperatures, Ocean acidification, coral bleaching, habitat destruction and extreme weather patterns.

These phenomenon have a direct impact on human lives by disrupting ocean biodiversity, Ocean dependent food patterns, and coastal livelihoods.

Member states and partners of IORA will work towards ensuring a sustainable, inclusive and people-centered Blue Economy to secure the Indian Ocean for future generations.

The Tropical Belt and the Indian Ocean combined will form the largest global sink for carbon sequestration.

Addressing the climate change need, up to date scientific knowledge, and the effective use of these findings

Therefore, at COP27, I proposed to establish an International Climate Change University (ICCU) to  

concentrate on post graduate studies – The ICCU objectives are capacity building and advancing research – necessary to contribute to the crucial efforts to limiting global warming to 1.5 degrees Celsius.

The ICCU will also serve as a futuristic “Centre for Excellence” in policy dialogue and advocacy on climate change.

The ICCU is critical for generating knowledge on the trans-disciplinary issues that is crucial for Climate Change Mitigation. i.e. for the survival of our planet. (Colombo/Dec 1/2023)

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Sri Lanka, India leaders meet at COP-28, discuss issues

ECONOMYNEXT – Sri Lanka President Ranil Wickremesinghe has met with India Prime Minister Narendra Modi in Dubai on the sidelines of the COP-28 global climate summit.

Modi tweeted Friday December 01 afternoon that it was “wonderful to connect and discuss various issues” with Wickremesinghe.

The run-in occurred amid ongoing discussions between the two South Asian nations on separate agreements on investment and trade. Wickremesinghe told this week’s Sri Lanka Economic Summit in Colombo that an attempt to join the Regional Comprehensive Economic Partnership (RCEP) has been hit by a lack of rules to admit new members.

Sri Lanka was earlier attempting to have a Comprehensive Economic Partnership Agreement (CEPA) which was scuttled by economic nationalists during the previous Rajapaksa administration.

“We have recommenced the talks with India,” President Wickremesinghe said on Wednesday November 29 at the economic summit organised by the Ceylon Chamber of Commerce.

“Earlier it was to be one. It has told us … they want one separate one on investment, and one separate one on trade. The investment one I think will take off first,” he said.

Related:

Sri Lanka eyeing investment only deal with India, RCEP hits roadblock: President

 

(Colombo/Dec01/2023)

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