Political News

Sri Lanka poll monitor deeply concerned over postal vote halt

Wednesday February 15, 2023 11:23 am

ECONOMYNEXT – A Sri Lanka polls monitoring group has expressed “deep concern” over the postponement of postal voting after the state printing unit said it did not have money to print ballot paper.

Sri Lanka’s Centre for Elections Monitoring Election Violence (CMEV) said it was a direct violation of voter rights.

“CMEV expresses its deep concern about the indefinite postponement of the postal voting for the Local Government Election 2023,” the group said in a statement.

“CMEV believes that the disruption of the postal voting could impact holding the Local Government Election 2023 as scheduled on March 9, 2023.

“The Government’s actions have created immense uncertainty for voters regarding the Local Government Election, and this is a direct violation of the right to vote that is guaranteed for all citizens under the Constitution of Sri Lanka.

“CMEV highlights it is the responsibility of the Executive to create an enabling environment for conducting the Local Government Elections, as per the Constitution.”

Sri Lanka President Ranil Wickremesinghe has reported to have asked spending agencies not to carry out work on credit, the CMEV said.

“The conduct of the Government Printer is specifically a violation of Article 104B(2) of the Constitution which states that it is the duty of all authorities of the State to co-operate with the Election Commission to enforce all laws relating to holding elections,” the CMEV said.

“Refusal or failure to carry out this duty is a criminal offence under Article 104GG of the Constitution.

“CMEV specifically urges the Election Commission to exercise its powers under this Article to take action against the Government Printer and any other public authority disrupting the election process.”

The full statement is reproduced below:

Statement on Disruptions to the Local Government Elections 2023

CMEV expresses its deep concern about the indefinite postponement of the postal voting for the Local Government Election 2023. It has been reported that this is due to the Government Printer’s refusal to submit the printed postal voting ballot papers on time to the Election Commission.

CMEV learnt that the Government Printer sent a letter to the Election Commission yesterday, February 13, 2023, informing it that it is unable to process the printing of ballot papers until the full cost for the printing is made by the Commission. This was in line with the President’s recent direction on January 31, 2023, to heads of government authorities to not purchase services on a credit basis.

CMEV believes that the disruption of the postal voting could impact holding the Local Government Election 2023 as scheduled on March 9, 2023. The Government’s actions have created immense uncertainty for voters regarding the Local Government Election, and this is a direct violation of the right to vote that is guaranteed for all citizens under the Constitution of Sri Lanka. CMEV highlights it is the responsibility of the Executive to create an enabling environment for conducting the Local Government Elections, as per the Constitution.

The conduct of the Government Printer is specifically a violation of Article 104B(2) of the Constitution which states that it is the duty of all authorities of the State to co-operate with the Election Commission to enforce all laws relating to holding elections.

Refusal or failure to carry out this duty is a criminal offence under Article 104GG of the Constitution. CMEV specifically urges the Election Commission to exercise its powers under this Article to take action against the Government Printer and any other public authority disrupting the election process.

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Economy

Sri Lanka seeks to settle India ACU debt, credit lines over 5-years

Sunday March 26, 2023 9:22 am

ECONOMYNEXT – Sri Lanka has requested India to settle payments due to the country under the Asian Clearing Union mechanism and credit lines given in 2022 over 5 years, Indrajit Coomaraswamy, an advisor the island’s government said.

Sri Lanka is negotiating with India to settle the money over a 5-year period, Coomaraswamy, a former central bank governor told an online forum hosted by the Central Bank.

“Our request from the Indians is to settle it over five years,” he said. “That I think is still in the early stages of negotiation. The same with the one billion line of credit.”

Sri Lanka’s central bank owed the ACU 2.0 billion US dollars to the Asian Clearing Union according to a year end debt statement, issued by the Finance Ministry.

Sri Lanka owned India, 1,621 million dollars according to ACU data by year end, excluding interest.

India has given a 1 billion US dollar credit line to Sri Lanka as well a credit line for petroleum.

Sri Lanka in March 2024 has paid 121 million US dollar out of a 331 million US dollar IMF tranche to settle an Indian credit line.

Indian credits were given after the country defaulted in April 2022 as budget support/import when most other bilateral lenders halted giving money. (Colombo/Mar26/2023)

Bonds & Forex

Sri Lanka coconut auction prices up 1.16-pct

Sunday March 26, 2023 7:26 am

ECONOMYNEXT- Sri Lanka’s coconut auction prices went up by 1.16 percent from a week ago at an auction on Thursday, data showed.

The average price for 1,000 nuts grew to 83,219.45 from 82,260.58 a week earlier at the weekly auction conducted by Sri Lanka’s Coconut Development Authority on March 23.

The highest price was 92,500 rupees for 1,000 nuts up from the previous week’s 90,600 rupees, while the lowest was 76,500 also up from 70,000 rupees.

The auction offered 900,010 coconuts and 583,291 nuts were sold. (Colombo/Mar 26/2023)

Economy

Sri Lanka in talks for billion dollar equivalent Indian rupee swap

Saturday March 25, 2023 6:44 am

ECONOMYNEXT – Sri Lanka is in talks with India for a billion US dollar equivalent Indian rupee central bank swap, to facilitate trade, Indrajit Coomaraswamy, ad advisor to the government said.

“The amount is still uncertain it could be up to the equivalent of a billion US dollars,” Coomaraswamy told an online forum hosted by Sri Lanka’s central bank.

The money will be used to facilate India Sri Lanka trade, he said.

India has been trying to popularize the use of Indian rupees for external trade and also encouraged Sri Lanka banks to set up Indian rupee VOSTRO accounts.

However the first step in popularizing a currency for external trade is to get domestic agents, especially exporters, to accept their own currency for trade, like in the case of the US or EU, analysts say.

India’s billion US dollar credit to Sri Lanka given during the 2022 crisis is settled in Indian rupees (transaction need).

However the Indian government itself has chosen to denominate it in US currency for debt purposes (future value).

In most South Asian nations, receivers of remittances are willing to accept domestic currencies, leading to active VOSTRO account transactions.

Sri Lanka is expected to repay a 400 million US dollar swap with the Reserve Bank of India next year under an International Monetary Fund backed program for external stability and debt re-structuring.

Central bank swap proceeds sold to banks, which are then sterilized with inflationary open market operations, can trigger forex shortages and currency crises, analysts warn.

Sri Lanka went to the International Monetary Fund after two years of inflationary monetary operations by the central bank’s issue department (money printed to suppress interest rates) triggered the biggest currency crisis in its history and external sovereign default.

Sri Lanka had gone to the IMF 16 times with similar external troubles except for the April 2003 extended fund facility under Central Bank Governor A S Jayewardene which was a purely reform-oriented program with the World Bank (PRGF/PRSP) program at a time when he was collecting reserves with deflationary monetary policy and perhaps the lowest inflation since the Bretton Woods collapsed. (Colombo/Mar26/2023)