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IMF acknowledges progress in Sri Lanka’s debt restructuring

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The International Monetary Fund (IMF) says that there is sufficient progress for Sri Lanka’s Debt Restructuring process to move forward.

However, the IMF further said Sri Lanka’s economy is still vulnerable and the path to debt sustainability remains knife- edged hence the country need to sustain the reform momentum.

Meanwhile, joining the IMF press briefing on Sri Lanka’s second review of EFF program held virtually this morning (14), IMF Senior Mission Chief for Sri Lanka Peter Breuer stated that the IMF fully respect the democratic process for elections to take place in any country and they adapt to the relevant process.

Furthermore, he mentioned that the elections may affect the timing of IMF’s missions they conduct in order to discuss compliance with the programme and reforms going forward.

“We of course fully respect the democratic process for elections to take place in any country and we adapt to that process. So, this may affect a little bit the timing of our missions that we conduct in order to discuss compliance with the programme and reforms going forward”, he said.

“The elections have not been called yet. We will await that and discuss with the authorities how we can adapt our schedule to that of the elections”, Mr. Breuer added.

In response to a question raised by a journalist whether there is scope to adjust the programme and reduce taxes by a newly appointed government following the elections, the IMF Senior Mission Chief for Sri Lanka expressed that it is significant how the reduction in government revenues had contributed to this very severe crisis in Sri Lanka.

He further said: “I just pointed you to these two charts [in the IMF report] to tell the story how the reduction in government revenues had contributed to this very severe crisis to this very severe crisis in Sri Lanka. Re-building these revenues is an important objective of the programme in order to allow Sri Lanka to emerge from the crisis.”

“Of course here we should bring revenue closer to the expenditures that the government is facing to reduce the gap between expenditure and revenue, and that will help to make the debt sustainable again and force Sri Lanka to be able to finance itself at interest rates it can afford and the debt are sustainable.”

“More broadly speaking, we are willing to listen to different views of how the programme objectives can be reached. These need to be realistic and achievable within the time frame of the programme”, he added.

Moreover, the IMF representative also stated that the ‘Public Financial Management’ law has now been sent to Parliament, which will help to strengthen the fiscal framework and enhance fiscal responsibility.

Mr. Breuer highlighted that the law will help to ensure that the funds are being spent by the government as intended.

(adaderana.lk)
(Except for the headline, this story, originally published by adaderana.lk has not been edited by SLM staff)

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Basil criticizes SLPP breakaway group in presence of President

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Founder of Sri Lanka Podujana Peramuna (SLPP) Basil Rajapaksa is reported to have told his party’s breakaway group at a meeting even attended by President Ranil Wickremesinghe that the Rajapaksas were not ready to cow down to any pressure.

He delivered tough remarks when Minister of Housing and Urban Development Prasanna Ranatunga, a breakaway member of the party backing the President, informed the meeting that there is a request from other parties and groups for the accommodation of the SLPP for a broad alliance sans the members of the Rajapaksa family.

Expressed his displeasure over the presence of the SLPP breakaway group representatives and the SLFP Incensed by such a remark, Mr. Rajapaksa lashed out saying “if you don’t want us once, we don’t want you a hundred times.”

He also said he attended the meeting as requested by the President out of courtesy for him and otherwise the Rajapaksas could not be beaten into submission in this manner.

Mr. Rajapaksa expressed his displeasure over the presence of the SLPP breakaway group representatives and the Sri Lanka Freedom Party (SLFP). He said that it is open for the President to decide whether to deal with the SLPP or its breakaway factions.

(dailymirror.lk)
(Except for the headline, this story, originally published by dailymirror.lk has not been edited by SLM staff)

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Poson Full Moon Poya day, today

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Today (22) is the Poson full moon Poya day.

It is considered a very important day to Buddhists in Sri Lanka as it commemorates the arrival of Buddhism in the country.

Various religious programmes are to be carried out in Mihintale and the Atamasthana, Solosmasthana and Buddhist temples across the island.

After the third Dharma Sangayana held in India, Mihindu Thero and his group came to Sri Lanka from Mihintalaya with the patronage of King Dharmashoka. 

King Devanampiyatissa, who was ruling the country at that time, also heard Dhamma from Mihindu Thero and took refuge in Sandaham, and with the arrival of Mihindu Thero, a cultural change took place. 

Along with Mihindu Thero, Sri Lanka also received 18 caste craft grades. 

Having education, literature, architecture, agriculture as well as a society full of values makes Poson Poya meaningful. 

It is a custom of Sri Lankan Buddhists to celebrate Poson with a festival, putting culture first.

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Public left to bear additional fuel costs due to CPC’s conduct!

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The Committee on Public Enterprises (COPE) has expressed displeasure that dishonesty within the Ceylon Petroleum Corporation (CPC) due into existing dishonesty within the institution, and the deliberate delay of 08 years and 08 months in issuing the relevant circular to filling station owners by its marketing department, has incurred a loss of Rs. 3,416 million for the period 2014-2022. 

In this backdrop, COPE was of the view that the marketing department should assume responsibility for committing large-scale fraud to the CPC.
This matter was taken up for discussion recently (19) when COPE met under the Chairmanship of MP Rohitha Abeygunawardena to examine the Auditor General’s report for the year 2022 and the current status of the CPC.

The Committee expressed its strong displeasure whilst insisting on holding the corporation’s officials accountable. Furthermore, COPE reiterating to the high officials present that the internal officials of the CPC are clearly responsible for such acts of fraud, inquired as to what actions the CPC has taken in this regard thus far.
Furthermore, COPE directed the CAO/AO to submit a report to the Committee within 7 working days containing the list of names of those affiliated to committing the fraud and the measures the CPC has taken to hold such officials accountable for their wrong doings.

Furthermore, it was disclosed that the public had to bear an additional cost for fuel due to the payment of Rs. 31,021.07 million as extra commission to the distributors.

Due to the overpayment made by the officials, COPE disclosed that the customer has to pay Rs. 5.85 for a liter of 92 petrol, Rs. 7.50 for a liter of 95 petrol, Rs. 5.88 for LED and Rs. 6.96 for LSD in excess as of the calculations to date (June 19).

The Committee also inquired regarding the commission which was paid in excess for the year 2022 which has been accounted as a sales expenditure when it should have been entered as a receivable. Accordingly, the Committee further inquired about the officials responsible for the recovery of these overpayments and the action taken in this regard.

It was also disclosed at COPE that the officials responsible for the said are no longer in the country.

The Committee on Public Enterprises directed the CAO/AO to submit a comprehensive report within two weeks containing the list of names of those affiliated to committing such financial fraud and to make a complaint to the CID for investigations in parallel with the internal investigations.

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