Economy

Sri Lanka state revenues up 21-pct, in first five months

Thursday June 11, 2015 8:15 am

COLOMBO (EconomyNext) – Sri Lanka’s state revenues rose 21 percent from a year earlier to 492 billion rupees in the first months of 2015, while expenses grew at a slower 12.5 percent, Deputy Economic Policy Minister Harsha de Silva said.

Sri Lanka has collected 32 percent of the estimated 2015 revenue of 1,592 billion rupees compared to 28 percent or 406 billion rupees in 2014.

"There is a clear improvement in government revenue," de Silva told parliament.

Sri Lanka’s new administration has closed at least three distilleries connected to the members of the ousted Rajapaksa regime which was involved in selling non-tax paid alcohol made with smuggled ethanol.

The firms were selling ‘extra-special’ arrack at around 680 rupees to retailers when the total tax component was 653 rupees, sources familiar with the matter say. Some of the ethanol was declared as having been used to make perfume.

Sri Lanka has set off a consumption boom with a further policy rate cut amid higher state recurrent expenditure and a recovery in private credit, with inevitable consequences leading to balance of payments trouble and run down of foreign reserves.

However low interest rates and rising consumption is also bringing in more revenues, particularly from vehicle imports.

Meanwhile with imports of especially motor vehicles rising, and a consumption boom being set-off by the new administration discouraging savings available for investment with another rate cut, state revenues have picked up from the import side as well, helping fund some of the spending.

Recurrent expenditure rose 12.2 percent to 623 billion rupees for the period, de Silva said with state salary increments, pensions and subsidies.

The current account deficit of the budget has narrowed in the first five months to 130 billion rupees from 148 billion a year earlier.

But unlike in 2014 there was lower foreign borrowings, leading to pressure on domestic credit markets. A steeper rise in rates was avoided by a run-down of foreign reserves.

De Silva said capital expenditure was also lower than last year with questionable projects being halted.

Sri Lanka is forecasting a budget deficit of 4.4 percent of gross domestic product, though the International Monetary Fund has warned that it may grow to as much as 6.7 percent.

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Economy

Sri Lanka facing unknown claims over halted airport terminal, Rs15bn in bills

Friday June 9, 2023 6:21 am

ECONOMYNEXT – State-run Airport and Aviation Services of Sri Lanka, has 15 billion rupees of bills and unknown additional claims after a contractor suspended work on a Japan funded terminal, following a sovereign default.

Sri Lanka ran out of foreign reserves in April 2022 after two years of money printing by macro-economists to mis-target interest rates for stimulus (output gap targeting) and defaulted amid forex shortages.

“Due to suspension and termination, there will be severe financial impacts to AASL..” the agency said in its annual report, which was noted in an emphasis of matter by Sri Lanka’s Auditor General.

The costs included delay charges to the Contractor, cost of plant and materials ordered with additional warehouse charges, cost for the care of works (safety, operational, environmental), costs for maintenance of incomplete works at the site, loss due to deterioration of the material, cost of demobilization and fixed rentals of temporary works, contractor’s equipment, cost of repatriation of the contracts staff and labor employed.

There could contractor’s claims arising out of suspension and termination, possible litigation charges by the subcontractors, which will be back charged by the main contractor,

Japan’s Taisei Corporation has already submitted bills of 6.35 billion yen (15.8 billion rupees at balance sheet date).

There could contractor’s claims arising out of suspension and termination, possible litigation charges by the subcontractors, which will be back charged by the main contractor, the report said.

A final claim has not yet been made.

Meanwhile Aviation Minister Nimal Siripala de Silva told parliament this week that Japan had agreed to resume the project after debt re-structuring is complete.

After Sri Lanka’s government defaulted a circular was issued not to settle loans obtained by government entities.

AASL has said it had funds to continue to service loans, and informed the Treasury and the Japan International Co-operation Agency.

“Despite the circular issued by General Treasury, Company in writing communicated to JICA as well as to General Treasury that we are expecting to make loan repayments and continue the project as company has enough funds,” the company said.

“However at that time JICA requested an endorsement from Ministry of Finance regarding the capability of loan repayments.

“Since that endorsement was not available due to IMF restructuring programme, constructor temporally suspended the project.” (Colombo/June09/2023)

Markets

Sri Lanka’s Peoples’ Leasing to buy 33-pct of First Capital

Friday June 9, 2023 6:15 am

ECONOMYNEXT – Sri Lanka’s People’s Leasing and Finance said it had entered into an agreement with Janashakthi Limited to buy a 33 percent stake in First Capital Holdings Plc for 4.95 billion rupees.

People’s Leasing will pay 37.10 rupees for a share of First Capital Holdings.

The transaction is subject to approval of the central bank and other regulatory authorities applicable to the two parties, the company said in a stock exchange filing.

If the transaction goes ahead People’s Leasing will make a mandatory offer to minority shareholders. (Colombo/June08/2023)

Democracy

Sri Lanka’s police, health workers mostly violate rights of LGBTQ community – report

Apsara Rodrigo

Thursday June 8, 2023 5:58 pm

By Apsara Rodrigo

Thursday June 8, 2023 5:58 pm

ECONOMYNEXT – Sri Lanka’s law implementing police officials and health workers among the top in violating the rights of lesbian, gay, bisexual, transgender, and queer (LGBTQ), according to a study, citing the complaints at the local Human Rights Commission and police.

A study conducted by Bridge to Equality, a civil rights group concerned over LGBTQ in Sri Lanka, shows that 160 rights violation cases reported to the police out of a total 235 during the 18 month period through March 31, 2023, are involved with police and health sector workers.

The data showed that police have been the perpetrators in 96 rights violation cases, while 64 cases are involved with health workers including medical officers.

“The analysis shows that some LGBTQ persons are reluctant to go to the authorities (such as the Human Rights Commission of Sri Lanka or the Police) due to the existing penal laws and various social stigmas that continues to exist in the society,” the Bridge to Equality said in the conclusion of the report based on the 235 complaints.

“These stigmas may include inaccurate perceptions that LGBTQ persons are psychologically unwell or that it is a trend or ‘lifestyle’ that conflicts with the Sri Lankan culture.”

The human rights violations have been involved with article 12 of the constitution which is involved with equality before the law and protection from discrimination, followed by article 11 which is linked to protection from torture and cruel, inhumane and degrading punishment.

The LGBTQ community also faces unlawful arrest, the report said.

Sri Lanka’s Penal Code, which states that “carnal intercourse against the order of nature” is a criminal offence” makes gayism and lesbianism against the country’s law.

Meanwhile, the transgender community has been targeted by another section of the Penal Code which criminalises “pretending to be some other person.”

Civil groups such as the Human Rights Watch and iProbono have said that individuals in the LGBTQ+ community have been subjected to forced anal and vaginal exams as well as being subjected to homophobic slurs from hospital staff.

The Health Ministry admitted that its workers have been violating the rights of LGBTQ.

“The LGBTQ+ community has been subjected to physical, verbal and sexual harassment by those in the medical field,” Anwar Hamdani, Director of Tertiary Care Services at the Ministry of Health, told EconomyNext.

Police Spokesman Nihal Thalduwa said only transgender people are legalized in Sri Lanka.

“Others are not legally accepted in the country. That’s how the police get included in this. Take lesbian as an example. There can be some who like it. However, even if there are people who are in favour of that, if some people complain about it, since it is not legally accepted then the police will have to take actions against it,” Thalduwa told EconomyNext.

“Since it is illegal, police will have to act on the existing law. Police do not have anything against it if that is legal. Maybe because of that there may be a perception saying the police are harassing them. But it is not like the police are going after individuals and harassing them.”

“However, when it comes to transgender issues the Police commissioner has issued circulars asking all police officers to take necessary precautions to not to harm the individuals privacy.”

While the repeal of the Penal Code that criminalizes gayism and lesbianism is currently in the process of being debated in parliament, convictions against those in the community are being carried out by the police.

“Other than a transition between genders, LGBTQ+ activity is unlawful in the country,” Thalduwa said.

“Therefore, those who are against the LGBTQ+ community look to the police to curb these activities. Because of its unlawful nature, convictions are being carried out.” (Colombo/June 08/2023)