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Monday December 11th, 2023

Sri Lanka’s reforms should be applicable for military as well- MP

ECONOMYNEXT –  Planned reform for Sri Lanka to come out from the ongoing economic crisis should be applicable for military as well and there should be a downsizing in the island nation’s military, opposition legislator Gajendrakumar Ponnambalam told parliament.

On the final day of the interim budget debate, the All Ceylon Tamil Congress lawmaker said the government is maintaining a massively structured military even during ongoing economic crisis time in the former Northern war zone in Sri Lanka to “oppress the general public”.

“When talking about restructuring, there was no discussion about restructuring of the military. The military structure is so big that in the budget – 19 percent of the budget last time,” Ponnamabalam told the parliament on Friday (02).

“For education and health together, it (the total) did not come up to 10 percent. In this interim budget you have increased slightly for those areas. But for military also you have increased.”

Most Northern opposition legislators have raised concerns over heavy military presence in the region despite the end of a 26-year war in 2009 with the defeat of Liberation Tigers of Tamil Eelam, a terrorist outfit which demanded an independent state for ethnic minority Tamils in Sri Lanka’s North and East.

Ponnambalam said, the government has allocated more money at a time when the rupee is depreciating and even there was no enemies seen in the country. Instead, he said, the money should have used for the general public.

“Our view is that, this interim budget fails miserably. It fails because this government, particularly the president needs the military. The government does not have public support. In fact, they need this government to go home. They want another mandate and an election.” he said.

Ponnambalam was one of the five members who voted against the budget at the end of two-day debate.

Ponnambalam said the government needs the military to oppress the people in order to sustain it because it doesn’t want to face the general public and respect democracy.

“This budget and the government policies in general at no point will look at the concerns of the people in the North and East,” he said.

“Because they require the military in some way to survive politically. And if they are to save politically, they need military to stifle democracy in the South, because that is the only way they can sustain their rule.”

“In that sense, again it is the North and East going to be the target through this.” (Colombo/ Sep 02/2022)

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  1. sacre blieu says:

    This is peacetime and there are enough intelligent and talented people in uniform to inform the government of any disturbance or conspiracy by treacherous elements. Sure, there is minimum reediness that should be maintained and facilitated but is not there a kind of display of things being overdone? Now, the main issue is the unbridled occurrence of fraud, bribery and naked corruption, with one government minister giving direction to the CID to investigate this corporation. The war was not won nor did those brave soldiers sacrifice their lives for this.

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  1. sacre blieu says:

    This is peacetime and there are enough intelligent and talented people in uniform to inform the government of any disturbance or conspiracy by treacherous elements. Sure, there is minimum reediness that should be maintained and facilitated but is not there a kind of display of things being overdone? Now, the main issue is the unbridled occurrence of fraud, bribery and naked corruption, with one government minister giving direction to the CID to investigate this corporation. The war was not won nor did those brave soldiers sacrifice their lives for this.

Sri Lanka rupee opens at 327.00/50 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee opened at 327.00/50 to the US dollar on Monday, from 327.00/30 Friday, dealers said.

On the Colombo Stock Exchange, both indices opened up: The All Share Price Index 0.28 percent at 10,823, and the S&P SL20 0.35 percent at 3,113.85.

Bond yields were up.

A bond maturing on 01.08.2026 was quoted at 14.05/20 percent from 14.05/15 percent.

A bond maturing on 15.01.2027 was quoted at 14.05/20 percent from 14.10/25 percent.

A bond maturing on 01.07.2028 was quoted at 14.20/50 percent from 14.20/35 percent.
(Colombo/Dec11/2023)

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Sri Lanka promoting Buddhist tourism from Vietnam, ASEAN

ECONOMYNEXT – Sri Lanka is planning to boost Buddhist tourism by linking temples in the country with those in East Asia, Foreign Minister Ali Sabry said after to welcoming a delegation of monks from Vietnam.

President Ranil Wickremesinghe, and Minister Sabry have initiated a temple-to-temple program where 100 Sri Lanka temples will be linked with counterparts in the Association of South East Asian Nations region.

“Tourism development will get a lot of growth with the temple-to-temple program,” Minister Ali Sabry said.

Along with the delegation of monks, five travel agents from Vietnam were also invited.

Under the first phase of the Temple-to-temple programs, several monks from Sri Lanka had received invitations from Indonesia, Malaysia, South Korea and Vietnam the Foreign Ministry said.

The Temple-to-Temple diplomacy program will be extended to Singapore, Japan, Thailand and Cambodia during the second phrase of the program.

Sri Lanka is targeting 2.3 million tourists in 2023, after getting about 1.5 million this year. (Colombo/Dec10/2023)

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ADB $200mn loan for Sri Lanka economic stabilization efforts

ECONOMYNEXT – The Asian Development Bank (ADB) has approved a US 200 million dollar concessional loan to Sri Lanka to help stabilize the country’s finance sector.

The Financial Sector Stability and Reforms Program comprises two subprograms of IS 200 million dollars each, according to a statement by the ADB.

“The program’s overarching development objective is fully aligned with the country’s strategy of maintaining finance sector stability, while ensuring that banks are well-positioned for eventual recovery,” ADB Country Director for Sri Lanka Takafumi Kadono was quoted as saying in the statement.

“The expected development outcome is a stable financial system providing access to affordable finance for businesses in various sectors of the economy.”

The ADB statement continues:

“Subprogram 1 targets short-term stabilization and crisis management measures that were implemented in 2023, while subprogram 2 is planned to be implemented in 2024 and focuses on structural reforms and long-term actions to restore growth in the banking sector.

The program will help strengthen the stability and governance of the country’s banking sector; improve the banking sector’s asset quality; and deepen sustainable and inclusive finance, particularly for women-led micro, small, and medium-sized enterprises.

According to the International Monetary Fund’s (IMF) latest review, Sri Lanka’s economy is showing tentative signs of stabilization, although a full economic recovery is not yet assured.

The program is a follow-on assistance from ADB’s crisis response under the special policy-based loan that was approved for Sri Lanka in May 2023.

It is aligned with the fourth pillar of the IMF’s Extended Fund Facility provided to Sri Lanka to help the country regain financial stability.

It is also in line with the government’s reform agenda, including strengthening the operational independence of the Central Bank of Sri Lanka (CBSL) and its designation as the country’s macroprudential authority.

In designing this subprogram 1 loan, ADB has maintained close coordination and collaboration with the IMF to design targeted regulatory reforms for the banking sector—including the asset quality review—and with the World Bank on strengthening the deposit insurance scheme.

“The loan is accompanied by a $1 million grant from ADB’s Technical Assistance Special Fund to provide advisory, knowledge, and institutional capacity building for Sri Lanka’s Ministry of Finance and CBSL.”
(Colombo/Dec9/2023)

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