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Sunday December 3rd, 2023

Sri Lanka ruling party kindles resignation drama over fuel price hike

ECONOMYNEXT – Sri Lanka’s ruling party in a dramatic move called for the resignation of Energy Minister Udaya Gammanpila a day after fuel prices were raised ending an election promise to fix oil prices, in bid to bolster the cash-strapped state energy firm.

Minister Gammanpila said the on Friday (11) the price hike was decided by a cabinet subcommittee as the state-run Ceylon Petroleum Corporation (CPC) had 330 billion rupees of accumulated losses and over 3 billion US dollars in foreign exchange which was in short supply.

But General Secretary of the ruling Sri Lanka Podujana Party, Sagara Kariyawasam, issued a statement charging Gammanpila of conspiring to bring the government’s leaders to disrepute by increasing fuel prices and calling for his resignation.

“Our utmost displeasure and concern with regard to the fuel price hike which has caused an added burden on public at this difficult time of the COVID-19 pandemic,” the party said in tweet.


“We demand that the minister in charge should take full responsibility and step down,” the party said.

Kariyawasam in a statement said it was the view of the party that additional burdens must not be placed on the public who was already suffering from a coronavirus pandemic.

It is however unusual for a ruling party to call for the resignation of a petroleum minister over a price hike.

There had been simmering tensions between Kariyawasam and Gammanpila.

Gammanipla has gone on record referring to a benign “internal struggle” to course correct the alliance and reverse some of its more problematic decisions.

In April 04, 2021, the minister said there was a conspiracy afoot to undermine President Gotabaya Rajapaksa’s administration and destroy the alliance from within.

“We know there are certain provisions in the 20th amendment to the constitution that go against the mandate. The 20th amendment wouldn’t have come out in the form that it did if the goal was to serve the mandate,” he said.

In his June 12 statement, Kariyawasam alluded to attempts to deliberately sabotage the government to make the party leadership unpopular in the eyes of the public.

Kariyawasam had previously levelled similar allegations at Industries Minister Wimal Weerawansa.

There have been tensions between Weerawansa and sections of the SLPP since early February when he refused to retract a remark he had made to a Sinhala-langue weekly on February 7 that President Rajapaksa must lead the SLPP.

His comment drew the ire of Kariyawasam who demanded an apology and a retraction from his colleague.

Previously, on February 2,the SLPP secretary criticised Weerawansa for going public with his party’s opposition to the now-scrapped East Container Terminal deal. His actions, Kariyawasam said, were detrimental to the unity within the ruling coalition.

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Sri Lanka UGC wants to boost number of IT-related degrees

ECONOMYNEXT – Sri Lanka’s University Grants Commission is of the view to boost the number of Information Technology (IT) related degrees in state universities with an aim to pave the way for a digital economy.

Sri Lanka’shigher education system has been producing more graduates in Arts stream while the degrees in highly demanded IT and other engineering services are being looked at only now.

“We do have a high demand for engineering, science, AI, computer and electronical engineering

studies,” Chairman of University Grants Commission, Sampath Amaratunga, told reporters at aa media briefing on Friday

“However, while avoiding neglecting the humanities, we should develop new IT skills.”

Amaratunga confirmed that a student who studied in any stream could obtain an IT degree, including students who studied in the arts stream.

The UGC data show that out of 18,490 engineering technology stream students who sat for their Advanced Levels (A/L) in 2022, 10634 were eligible for university.

“Even streams like agriculture should be encouraged to use technology,” Amaratunga said. (Colombo/Dec 2/2023)

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Sri Lanka leader inaugurates Climate Justice Forum at COP28 in Dubai

ECONOMYNEXT – Sri Lanka President Ranil Wickremesinghe launched Climate Justice Forum (CJF) at the ongoing 2023 United Nations Climate Change Conference (COP28) held in Dubai in a move to gather support for vulnerable nations hit by climate-change led disasters.

This year’s climate summit held in Dubai’s EXPO2020 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 inaugurated the Climate Justice Forum at COP28 on Saturday and emphasized the critical importance of addressing climate issues with a sense of justice and equity.

The President had been in talks with many nations vulnerable to climate change disasters including African and South American countries to get their support for the CJF.

The move is to compel advanced and developed countries to look into the poor nations hit by the climate changes and help them to get over economic and debt burdens by either investing more in green energy initiatives or writing off debts to ease financial pressure.

Sri Lanka, which is now facing an unprecedented economic crisis, has seen increasing losses and damages, both human lives and physical properties due to climate change-led disasters like floods, drought, and earth slips.

In his speech at the COP28 forum, Wickremesinghe on Friday said the Climate Justice Forum will provide a platform for constructive and proactive engagements. (Dubai/Dec 2/2023)

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Sri Lanka IMF review goes to executive board on December 12

ECONOMYNEXT – The first review of Sri Lanka’s International Monetary Fund program is scheduled to go the lender’s Executive Board for consideration on December 12.

Sri Lanka officials were expecting the review to be completed in December as soon as official creditors gave their assurances.

According to the notice Sri Lanka had missed one performance criterion and has requested modifications.

Sri Lanka has outperformed on a number of quantity targets including inflation. In addition to quantity PCs there was also one non-accumulation of arrears.

There would also be re-phasing of access. The review was originally expected around September with another review based on December data, leading to September and March disbursements.

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