<ul><li>Public debt to be below 95% of the country’s total GDP by 2032 and after</li><li>Economy to be transformed into an export-oriented, digitised economy</li><li>Parliament to hold oversight power of Cabinet when executing the act</li><li>Govt. to seek assistance of five agencies for effective implementation</li></ul> The Government is to present to Parliament on Wednesday (22) the proposed Economic Transformation Bill, which is yet another key piece of legislation under the ongoing programme with the International Monetary Fund (IMF).The Sunday Morning, upon inquiry about the proposed Economic Transformation Bill from Government sources, was told that it has been proposed that the President should, every five years commencing from 2025, ensure the Cabinet of Ministers prepares and presents a report to Parliament on the policy framework, strategies, and legislation which will ensure the continued adherence to the National Policy on Economic Transformation, which is the base of the proposed piece of legislation.In the case of targets outlined by the National Policy not being met, it will be the responsibility of the Government to inform Parliament of the measures being taken to remedy this shortfall.&nbsp;Also, in keeping with Articles 4, 43, and 148 of the Constitution, Parliament will continue to have the power of oversight control of the Cabinet of Ministers when executing its powers and responsibilities under the proposed legislation.It is also learnt that the proposed legislation will address issues related to the country’s public debt as outlined by the IMF.&nbsp;Accordingly, the new act is aimed at holding public debt at below 95% of the country’s total Gross Domestic Product (GDP) from 2032, holding the Government’s financing requirements below 13% by 2032 and afterwards, and ensuring that annual repayment of the Government’s foreign obtained loans will be below 4.5% of the total GDP from 2027.The successful implementation of the proposed act is aimed at ensuring that all citizens will be assured an adequate standard of living for themselves and their families along with the continuous improvement of living conditions for all those residing in the country, providing an equal focus to the private sector in order to ensure sustainable and evenly distributed rapid development of the country, and striving to avoid a repeat of the economic crisis experienced by the country in 2022.According to informed sources, the National Policy on Economic Transformation will set several key economic targets that include that GDP must reach 5% per annum by 2027 and increase 5% from then on; the total level of unemployment in the country to fall below 5% by 2025; ensure that by 2030 female participation in the labour force must not be below 40%; hold the current account deficit at less than 1% in the event the country experiences such a deficit; and to see a growth in Foreign Direct Investments (FDIs) to reflect 5% of the total GDP by 2030 as well as a shift in FDIs towards the export of goods and services by 2040.Also, keeping in line with the policy of becoming an export-oriented economy, the export of goods and services is expected to meet the following targets: not less than 25% of total GDP by 2025; not less than 30% of total GDP by 2030; and 60% of total GDP by 2040.The Government is to seek assistance from several agencies to implement the proposals in the new legislation. These agencies are the Economic Commission, Zones SL (charged with the responsibility of advising the Economic Commission on the requirement for investment zones, while also operating and managing these zones), Office of International Trade (charged with the development and promotion of Sri Lanka’s international trade), National Productivity Commission (charged with promoting economic growth through increased productivity), and the Sri Lanka Institute of Economics and International Trade (charged with research for policy, international trade, and international finance).

Proposed Economic Transformation Bill: Key bill under IMF prog. to P’ment on Wednesday 

<ul><li>Senior Foreign Service official to Embassy in Russia</li><li>Previous Amb. Liyanage completed tenure in April</li></ul> The Sri Lankan Embassy in Russia is yet to receive an ambassador while the Government plans to send a senior Foreign Service official to the embassy until a new ambassador is appointed, in light of the prevailing situation in the country, The Sunday Morning learns.&nbsp;Speaking to The Sunday Morning yesterday (18), State Minister of Foreign Affairs Tharaka Balasuriya said that this absence of an ambassador was simply a procedural gap, sharing that a senior official from the Foreign Ministry would be sent to oversee affairs given the situation in Russia at present.&nbsp;“The current absence of an ambassador is not a major issue. We also have a senior officer over there, from the Foreign Service. However, given the urgency of what’s happening, we will be sending a very senior Foreign Service official as well. He is now retired, but we’ll be sending him.”Balasuriya stressed that this did not indicate that the official currently in Russia was inadequate, but that this was being done to strengthen the mission, noting that things were proceeding according to usual protocol.“The previous Ambassador had been given three extensions. It’s a usual thing that once the ambassador returns, there’s a gap of about two or three months, after which a new ambassador takes over.”Although he revealed that the new ambassadorial appointment had been planned, he declined to divulge details regarding the appointee.&nbsp;According to the Sri Lankan Embassy in Russia website, Ambassador of Sri Lanka to the Russian Federation Prof. Janitha A. Liyanage completed her service in the Embassy of Sri Lanka in Moscow on 29 April. At present, Counsellor Ruvini K. Munidasa serves as the Chargé d’Affaires of the Embassy.Meanwhile, with President Ranil Wickremesinghe having directed the dispatch of a special delegation to Russia to explore the possibility of repatriating Sri Lankans who were trafficked to the country, Balasuriya said that the delegation was prepared to leave once matters were confirmed on the Russian side.&nbsp;“We have given the names of the delegation to the Russian authorities and requested them to facilitate the meetings with the Russian Government. Once they confirm the meetings, the delegation will go at the earliest.”Addressing the precise date for the delegation’s departure, he noted that the diplomatic communication was yet to be sent to Russia, after which the Russian Foreign Minister had to request a particular date.Regarding the Sri Lankans who had gone to Russia under these circumstances, he said that the Government was monitoring the situation, explaining that there were several measures in place as well.&nbsp;“We are monitoring the situation. I believe they have probably taken about five routes to get to Russia; they haven’t flown from Colombo to Moscow or St. Petersburg directly, but have gone through other countries.”“The Ministry of Defence (MOD) has a hotline for this. Also, through the press and the media, we have stressed for anybody who knows the next of kin of those who have gone to Russia to inform the MOD. Our Consular Office also received certain information and is working on it.”However, the Minister pointed out that it was difficult to identify the precise number of individuals who had departed for Russia in this manner.&nbsp;Unofficial reports indicated that a number between 600 to 800 Sri Lankans were currently in Russia, the Minister said, noting that this number could be much higher, although there was no way to be certain.&nbsp;Similarly, Controller General of Immigration and Emigration Harsha Ilukpitiya too said that it was difficult to specify the numbers of those who had gone to Russia, since many had reportedly first gone to India and had travelled across land to such destinations using visit visas. “Therefore, there is no means of checking how many went for such employment purposes to Russia.”&nbsp;Moreover, he noted that since these individuals had been sent by agencies, the available information was what had been obtained from these agencies, since the Government had no means of tracing such travel over land.&nbsp;Accordingly, he noted that the Human Trafficking Task Force, Criminal Investigation Department (CID), and Police were taking action regarding citizens who had been recruited to fight in the Russia-Ukraine war front by companies involved in alleged human smuggling.&nbsp;

Sri Lankan mission in Russia: No ambassador yet owing to procedural gap

&nbsp;<ul><li>Audit report given to Parliament&nbsp;</li></ul>A cost of approximately Rs. 280 million is estimated to have been incurred to import 10 non-essential medicines from a company based in India in 2022, despite warnings of a health crisis in the face of shortages of essential medicines.&nbsp;An audit report released last week on the procurement of medicines in 2022 and 2023 reveals that although two medicine lists (vital and essential) for a total of 325 medicines where stocks were available for less than three months had been submitted to the Cabinet, 10 medicines imported from this Indian company during this emergency procurement period had not been included in the essential medicines list.Auditor General W.P.C. Wickramaratne told The Sunday Morning that this report had also been forwarded to Parliament.&nbsp;According to the audit report, Savorite Pharmaceuticals Ltd. has written to the Health Ministry in October 2022 proposing that the Government procure 38 medicines belonging to it. Following this, Cabinet approval had been sought to sign an agreement with Savorite and other selected suppliers and to make payments by utilising Indian credit line funds and other funds.&nbsp;“After four days from the date of letter forwarded to the Minister of Health by the company [Savorite] on 21 October 2022, the Minister of Health had informed that the existing stocks in the Medical Supplies Division (MSD) were at risk level, stocks of 151 medicines were at zero level, the function of the surgeries would be totally inactivated during next three months, and that Savorite had agreed to provide the medical supplies to Sri Lanka,” states the report.&nbsp;As such, a letter had been issued to award orders worth a total of $ 4,490,377.5 (for 38 medicines) by the former Health Ministry Secretary to Savorite.&nbsp;“It was observed that 10 medicines out of 38 ordered from this company were the medicines which had not been included in the essential medicines list and an expected amount to be incurred for that was approximately Rs. 280 million,” said the report.&nbsp;The report further observes that the letter had been sent to Savorite by the then Health Ministry Secretary prior to obtaining the approval of the Health Sector Emergency Procurement Committee.Quoting information from the Treasury Department, the report further states that emergency purchases during 2022 and 2023 had been mainly done using funds from the Indian credit line, the Asian Development Bank (ADB), the World Bank, and donations from China.Director General of Health Services (DDHS) Dr. Asela Gunawardena told The Sunday Morning that the audit report would be received by the Health Ministry Secretary and the ministry would accordingly respond to the audit query.&nbsp;“We have to discuss with stakeholders, including the MSD, about the investigation and revelations. In the meantime, in response to issues that occurred in 2022 and 2023, we are trying to get the system in order. It is taking some time, but we have stopped all emergency purchases and have a proper priority list of medicines now,” he said.&nbsp;Sri Lanka resorted to emergency medical purchases in 2022 with the onset of the economic crisis as hospitals ran out of medicines and essential surgeries came to a halt. However, since then, many reports have surfaced of corruption that occurred through these emergency purchases, with the most prominent one revealing a consignment of fake immunoglobulin that the Health Ministry had cleared for use last year, which when injected, had caused patients to react adversely.&nbsp;Former Health Minister Keheliya Rambukwella, along with seven other suspects including former Health Ministry Secretary Janaka Sri Chandraguptha, have been accused of being involved in the scam and remain in Police custody.

Emergency meds purchases in 2022: Rs. 280 m spent on 10 non-essential meds

The Bar Association of Sri Lanka (BASL) has appointed a five-member committee to run through the conduct of the Japan International Cooperation Agency (JICA) study that has allegedly been done without proper procedure.&nbsp;Media reported last week that JICA had engaged a team of five from the BASL late last year for a study on bribery and corruption, for which the BASL had received a grant of over Rs. 21 million.&nbsp;However, the report alleged that over Rs. 19 million had been divided among the five members and that they had not obtained approval from the BASL or the Executive Committee for the study.&nbsp;Speaking to The Sunday Morning, BASL President Kaushalya Nawaratne, PC said that following a meeting yesterday (18), it had been decided to appoint a five-member committee of senior President’s Counsels (PCs) to inquire into the conduct of the programme.&nbsp;“They will advise on how to ensure non-recurrence of such incidents as well,” said Nawaratne.&nbsp;Accordingly, the team will include President’s Counsels Faisz Musthapha, Dr. K. Kanag-Isvaran, Ikram Mohamed, Geoffrey Alagaratnam, and Rienzie Arsecularatne.The allegations had first been raised at a meeting held earlier this month.

Committee to probe BASL-JICA controversy

<ul><li>Criticises OMP for administrative focus over thorough investigations</li></ul> The Office of the United Nations High Commissioner for Human Rights (OHCHR) on Friday (17) called on the Sri Lankan Government to urgently establish an independent prosecutorial authority, appoint a special prosecutor, and create an ad hoc special court to address gross violations of international human rights law and serious breaches of international humanitarian law.In its latest report on accountability for enforced disappearances in Sri Lanka, the OHCHR has recommended enhancing the capabilities of the Office on Missing Persons (OMP), ensuring thorough investigations into mass graves, and providing access to relevant archives and reports from various Commissions of Inquiry (CoIs).The report stated that in 2016, the Government had established the OMP and over the last seven years, the OMP, despite having broad powers under its legislation, appears to have taken what might be described as an administrative “case management approach,” with preliminary inquiries focused on the eligibility of victim families to financial assistance, rather than carrying out thorough investigations to clarify the fate and whereabouts of individuals.“The OMP faces a lack of trust from victim communities. Ideally, international technical assistance should be directed to supporting a re-orientation of the OMP towards clarifying the fate and whereabouts of disappeared persons, strengthening the institution’s independence, and ensuring a safe environment for victims to engage,” stated the report.&nbsp;&nbsp;The OHCHR recommends that the Government acknowledge the scale of disappearances and the involvement of State security forces and armed groups, as well as the issuance of a public State apology.It calls upon Sri Lanka to intensify independent investigations and expedite constitutional and legal reform to ensure an effective framework for the investigation and prosecution of enforced disappearances.Before any new truth-seeking mechanism is established, the OHCHR recommends that Sri Lanka creates an enabling environment and implements crucial confidence-building measures, including ending threats, harassment, and unlawful and arbitrary surveillance against human rights defenders and victims’ groups.&nbsp;Any truth-seeking mechanism needs to be part of a comprehensive transitional justice strategy that includes a judicial mechanism, it notes.&nbsp;Similarly, the OHCHR recommends a comprehensive and gender-sensitive approach to reparations. It also calls for the taking of immediate steps to prevent recurrence of enforced disappearances, including refraining from appointing or promoting credibly alleged perpetrators of violations to high-level positions.The OHCHR recommends that the international community continues to closely monitor developments and progress towards accountability by Sri Lanka through the Human Rights Council (HRC) and use all means at its disposal to ensure accountability, including through its bilateral and multilateral relationships, its use of universal jurisdiction, and other avenues of international justice as well as targeted sanctions.It is further stated that from the 1970s through to the end of the civil war in 2009, Sri Lanka witnessed several waves of enforced disappearances. Primarily used by Sri Lankan security forces and affiliated paramilitary groups as a tool to intimidate and oppress perceived opponents, it is apparent that, at a minimum, tens of thousands have been subject to enforced disappearances. Perpetrators at all levels continue to escape justice. Impunity remains deeply entrenched. Families remain without knowledge of the fate and whereabouts of their disappeared relatives.“In recent years, Sri Lanka has taken some positive steps, including ratifying the International Convention for the Protection of All Persons from Enforced Disappearance (ICPPED); criminalising enforced disappearances; and establishing a range of CoIs, the OMP, and the Office for Reparations (OR). However, these steps have not resulted in tangible progress in realising victims’ rights to truth, justice, reparations, and guarantees of non-recurrence.&nbsp;“For as long as the fate and whereabouts of a disappeared person remain unclarified, the enforced disappearance remains a ‘continuing violation’. Placing victims at the heart of its work, the OHCHR conducted bilateral interviews with 39 victims (32 women and seven men) and convened focus groups involving 43 victims (34 women and nine men) to learn of their experiences and their perspectives on accountability,” the report states.&nbsp;

OHCHR: Calls to set up special prosecutor and court for HR violations

The National Building Research Organisation (NBRO) has issued landslide warnings for eight districts due to the ongoing heavy rainfall.&nbsp;The affected districts include Badulla, Kalutara, Kandy, Kegalle, Kurunegala, Matale, Nuwara Eliya, and Ratnapura.The NBRO’s update, published on Friday (17), indicates Level 1 (Yellow) landslide warnings for these districts.&nbsp;Areas of special concern include all mountainous regions, man-made cut slopes, and roads within the relevant Divisional Secretariat divisions.NBRO Director General Dr. Asiri Karunawardena confirmed that first-level early landslide warnings had been issued due to rainfall exceeding the threshold limit of more than 75 mm per day.Speaking to The Sunday Morning, Dr. Karunawardena also said that the Ella-Wellawaya Road, previously closed due to an embankment collapse in Karandagolla, was currently open during the day but remained closed at night.“During daytime, under close supervision, we allow vehicles to move across that particular area,” he said.The Department of Meteorology has advised residents of the Western, North Western, and Sabaragamuwa Provinces, along with the Galle and Matara Districts, to take precautions against localised strong winds and lightning during thunderstorms.These regions are expected to experience enhanced showery and windy conditions over the next few days due to pre-monsoonal activity. The advisory for heavy rain, issued on 17 May, predicts rainfall exceeding 100 mm in these areas, with this year’s monsoon rains potentially surpassing previous years.The department emphasised the need for vigilance regarding potential calamities such as strong winds, floods, landslides, and rising waves that could inundate low-lying coastal areas.Disaster Management Centre (DMC) Education and Public Awareness Division Assistant Director – Media Janaka Handunpathiraja highlighted the severity of the situation, particularly in sea areas from Kalpitiya to Galle and Hambantota, where wind speeds may increase to 60-70 km/h.“So far, evacuations haven’t been conducted. But the public has been warned about the upcoming possibility of landslides,” DMC Assistant Director Pradeep Kodippili said.&nbsp;The public is urged to stay informed and contact the DMC through the emergency number 117 to report any disaster situations.– By Kenolee Perera

Landslide warnings for eight districts

The Inland Revenue Department (IRD) has clarified that the potential conversion of National Identity Card (NIC) numbers to Taxpayer Identification Numbers (TINs) is merely a proposal under consideration, with no current plans for implementation.Speaking to The Sunday Morning, IRD Assistant Commissioner S.A.K.K. Sanath emphasised that there had been no concrete decisions made regarding this transition.&nbsp;“So far, we haven’t implemented anything like that. It is just a suggestion,” he stated.Sanath further explained that while the department did utilise NIC numbers to assist in TIN registration, this process was currently limited to using NIC details for ease of registration rather than replacing TINs with NICs.“For example, if we were to be sent a list of names and their NICs, we would use that data to register such individuals for TINs,” he said.Meanwhile, the criteria for TIN registration remain unchanged and all citizens over the age of 18 are required to obtain a TIN.However, the deadline for registration has been lifted in light of the economic challenges faced by the public, allowing individuals to register for a TIN at their convenience, with the IRD focused on facilitating the registration process for taxpayers rather than imposing new regulations.State Minister of Finance Ranjith Siyambalapitiya said earlier this year that the Government was looking at making an individual’s NIC number their TIN number as well.

TIN registration: No immediate plans to convert NIC to TIN

Over 650 employees at the Sapugaskanda Refinery, the country’s sole oil refinery, are at risk of losing their jobs due to its transformation into a State-Owned Enterprise (SOE), The Sunday Morning learns.Reliable sources indicate that the Government plans to recruit only about 200 of the current employees for the new SOE.The remaining workers will be placed in a pool from which the new SOE will select the necessary personnel to maintain operations, it is learnt.The proposal to operate the Sapugaskanda Oil Refinery as a public enterprise, separate from the Ceylon Petroleum Corporation (CPC), has been approved by the Cabinet of Ministers.&nbsp;This decision was made during the Cabinet meeting held in March, following a submission by Power and Energy Minister Kanchana Wijesekera.According to a statement from the Government Information Department outlining the weekly Cabinet decisions, the move is driven by the need for a “critical investment” to modernise and upgrade the refinery’s ageing infrastructure.&nbsp;The goal is to ensure the refinery’s operational efficiency and viability for at least another 25 years.In a separate announcement on X, Minister Wijesekera revealed that Expressions of Interest (EOIs) would be called for to find a suitable investment partner to enhance the infrastructure and address current operational challenges.Furthermore, the Minister revealed plans to explore the relocation of the Sapugaskanda Oil Refinery to Trincomalee, which will involve the establishment of upgraded, modern facilities and the expansion of the Oil Tank Farm to support future operations.Meanwhile, Ceylon Petroleum Common Workers’ Union (CPCWU) President Ashoka Ranwala alleged that higher-level officials of the refinery had been promised director posts in the new company the Government was planning on forming, due to which they were not opposing the move.“If they go ahead with this move, a number of employees will lose their jobs. Sri Lanka has only one refinery. If they privatise it, the Government will lose control over the entire petroleum sector,” he stressed.Early this year, the Cabinet approved a procurement process to find an investor for developing the Upper Tank area in China Harbour, Trincomalee. This plan includes leasing 61 out of 99 fuel tanks to Trinco Petroleum Terminal Ltd. for 50 years.&nbsp;The development will follow a 16-year plan in seven phases, starting with renovating nine tanks, laying a 1.75 kilometre pipeline, and building supporting facilities on a Build, Operate, and Transfer (BOT) basis.The Sapugaskanda Oil Refinery, built with Iran’s help in 1969, currently meets only 25% of local refined petroleum needs. Plans to expand it have been halted due to high costs, with a 2010 study estimating a $ 2 billion price tag for upgrades.&nbsp;The Government aims to make the refinery a separate public enterprise to attract investments and modernise SOEs for better economic efficiency.&nbsp;In November 2023, the Cabinet also awarded a $ 4.5 billion contract to China Petroleum and Chemical Corporation (Sinopec) to build a new refinery and processing centre in Hambantota, marking the largest investment since the economic crisis.

SOE transformation: Over 650 jobs at risk at Sapugaskanda Refinery

The Ceylon Electricity Board (CEB) is closely monitoring current hydropower generation levels to determine whether it should proceed with pending maintenance work on the Norochcholai Power Plant.A senior CEB official told The Sunday Morning that a decision regarding the resumption of maintenance activities would be made soon, based on the status of reservoirs and hydropower capacities.The CEB anticipates an increase in hydropower generation due to current pre-monsoonal conditions and the forecast of high monsoon activity across the country.As of Thursday (16), water reservoirs were reported to be at optimal levels, enhancing the potential for hydropower production.According to the Mahaweli Authority, while some key reservoirs are at low levels, others show varied storage capacities.&nbsp;The Kotmale Reservoir in the Mahaweli system and Castlereagh Reservoir in the Kelani system are notably low.&nbsp;However, the Victoria and Bowatenna Reservoirs in the Mahaweli system and the Maussakelle Reservoir in the Kelani system are at 20.1%, 37%, and 20.1% of their active storage capacities, respectively.On the irrigation front, the Nuwara Wewa and Hurulu Wewa Reservoirs are at 48.5% and 45.3% capacity. Meanwhile, the Udawalawe Reservoir has exceeded its maximum capacity and is spilling over.The CEB has delayed scheduled maintenance for Unit 3 of the power plant due to ongoing electricity generation issues.&nbsp;In recent years, the Lakvijaya Power Plant, also known as the Norochcholai Power Station, has experienced several shutdowns and numerous breakdowns. Although multiple investigations into these breakdowns are underway, including one related to a nationwide blackout, their findings have not been made public yet.Industry sources stated that during these periods of disruption, maintenance and operations were largely handled by the China Machinery Engineering Corporation (CMEC). Most recently, Unit 2 of the plant underwent a major overhaul and was reconnected to the grid in August last year, with maintenance conducted by both Chinese and local experts.According to the manufacturer’s recommendations, a ‘Level A’ overhaul is required every four to six years for a 300 MW coal-fired steam power plant. However, the first ‘Level B’ overhaul for Unit 2 was delayed until August 2018, eight years after its initial synchronisation.The Lakvijaya Power Plant, Sri Lanka’s first coal power plant, was constructed to meet the base load of the country’s daily energy demand. Phase I, with a capacity of 300 MW, was commissioned in March 2010, followed by Phase II, which added 600 MW (2x300) in 2014.&nbsp;The project was funded by an $ 891 million soft loan from the Export-Import (Exim) Bank of China, with the Sri Lankan Government investing Rs. 5,300 million in the first stage and Rs. 11,000 million in the second stage. The CMEC was responsible for the construction.Currently, the Norochcholai Coal Power Plant supplies nearly 40% of Sri Lanka’s firm energy demand.

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SOE transformation: Over 650 jobs at risk at Sapugaskanda Refinery

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Committee to probe BASL-JICA controversy

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OHCHR: Calls to set up special prosecutor and court for HR violations

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Landslide warnings for eight districts

Landslide warnings for eight d ...

TIN registration: No immediate plans to convert NIC to TIN

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