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Friday June 2nd, 2023

Sri Lanka opp. leader wants death penalty for terrorists, drug traffickers

ECONOMYNEXT – Sri Lanka’s opposition leader Sajith Premadasa wants the death penalty imposed on charges pertaining to terrorism and drug-trafficking, à la Singapore.

“Singapore gives the best penalties for terrorism and drug trafficking. We will not deviate from that position, but the judicial process must be transparent, fair and free of influence,” Premadasa said Wednesday (28) morning.

He was speaking to reporters outside the Criminal Investigation Department (CID) headquarters in Colombo where main opposition Samagi Jana Balavegaya (SJB) MP Harin Fernando was being questioned over a speech Fernando had made on the 2019 Easter bombings.

Related: Sri Lanka opposition MP Harin Fernando summoned to CID over Easter attack speech

Rather than punishing proven terrorists, said Premadasa, the government wants to pay for their upkeep with taxpayer money.

“Is this the solution our country has for those proven to have carried out terrorist activities?” he said.

Sri Lanka has an ongoing de facto moratorium on capital punishment that goes back 45 years, with the last execution carried out in 1976.

Hundreds have been sentenced to death since then, though the punishment has not been carried out.

Plans by former President Maithriapala Sirisena to reinstate capital punishment in June 2019 were met with widespread criticism both locally and internationally.

“Sri Lanka’s plan to resume use of the death penalty is a major setback for human rights,” said Brad Adams, Asia director of the Human Rights Watch in June 30 2019.

“Sri Lanka has been a bulwark against capital punishment in Asia for more than four decades, yet now the Sirisena government wants to throw in its lot with less rights-respecting regimes,” he said.

President Sirisena ordered the execution of four convicted drug traffickers, but the Supreme Court in October 2019 extended a previous interim order on the death penalty, effectively preventing the then president’s attempt.

Premadasa, who was a prominent minister in Sirisena’s Yahapalana government though of the then rival United National Party (UNP), publicly expressed his support for the reinstatement of capital punishment in Sri Lanka.

As recently as October 2020, the SJB leader called it an “urgent need” of the hour.

An Amnesty International factsheet on capital punishment notes that evidence from around the world has shown that the death penalty has no unique deterrent effect on crime. Citing studies in the USA and Candada, Amnesty International said there is no evidence to support the claim that abolishing the death penalty leads to higher crime rates.

“In 2004 in the USA, the average murder rate for states that used the death penalty was 5.71 per 100,000 of the population as against 4.02 per 100,000 in states that did not use it. In 2003 in Canada, 27 years after the country abolished the death penalty the murder rate had fallen by 44 per cent since 1975, when capital punishment was still enforced. Far from making society safer, the death penalty has been shown to have a brutalizing effect on society. State sanctioned killing only serves to endorse the use of force and to continue the cycle of violence,” the report said. (Colombo/Jul28/2021)

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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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