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IMF applauds SL’s progress in implementing economic reforms

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During a meeting between President Ranil Wickremesinghe, Sri Lankan authorities and the International Monetary Fund (IMF) yesterday (11), the IMF congratulated the country on completing the first review under its program.

 The IMF highlighted the positive start of the program, recognizing the challenging reforms undertaken by Sri Lanka and their significant impact on the domestic population. Directors at the executive board meeting applauded Sri Lanka’s courage in publishing the governance diagnostic, a pioneering effort in Asia. 
Senior Mission Chief for Sri Lanka, Peter Breuer noted that encouraging signs were noted regarding the program’s impact on stabilizing the economy, particularly in policy-oriented variables and fiscal areas. A recent meeting revealed promising revenue collection, indicating the effectiveness of implemented policies since reaching a staff level agreement in the second half of 2022. The IMF emphasized the positive surprise in these developments, boosting confidence with the international community, official creditors and private creditors. 

Mr. Peter Breuer told President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022 are working, that they have the intended effect, that you’re collecting the revenue that’s needed to address the cause of the crisis. So, that really is very good news.” 

The board meeting recognized Sri Lanka’s success in reducing inflation significantly, attributing it to the government’s efforts in monetary policy and scaling back monetary financing. Positive outcomes, such as an increase in reserves, were also observed. The ongoing governance reforms were acknowledged as positive indicators, contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.

As the IMF plans its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs and urgent preparations for property taxation. The IMF stressed the importance of perseverance with ongoing reforms, addressing fiscal issues and advancing governance agendas.

The meeting also highlighted the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector. 

On the governance front, operationalizing the Anti-Corruption Commission, publishing action plans and meeting with the Constitutional Council for insights into commissioner selection processes were discussed.

The IMF commended Sri Lanka’s partnership on capacity development, emphasizing the importance of enhancing the skills of the civil service for the success of ongoing reforms. The program aims to build capacity in the civil service, crucial for the implementation of reforms. 

The authorities expressed approval for the program and discussions on its rollout and impact will continue in the coming weeks.

As the two-week mission unfolds, further discussions between Sri Lankan authorities and the IMF are expected to delve deeper into these key areas, providing a comprehensive overview of the progress and challenges in Sri Lanka’s economic reform journey.

State Minister for Finance Mr. Shehan Semasinghe, President’s Senior Advisor on Economic Affairs Dr. R.H.S. Samaratunga, Central Bank Governor Dr. Nandalal Weerasinghe,  Secretary of the Ministry of Finance Mr. Mahinda Siriwardena and other officials participated at this event. 

(President’s Media Division)

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The National War Heroes Commemoration tomorrow at Kotte Cenotaph

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The 16th National War Heroes Commemoration Ceremony will be held on Monday (19 May) at the National War Hero Cenotaph in Sri Jayawardenepura, Kotte, from 4.00pm to 6.00pm.

A series of island-wide community welfare programmes will also be carried out by armed forces, Police and Civil Security Department in view of the War Hero Commemorations.

Deputy Minister of Defence Major General Aruna Jayasekara (Retd) is expected to represent President Anura Kumara Dissanayake at the event. Field Marshal Sarath Fonseka, Admiral of the Fleet Wasantha Karannagoda and Marshal of the Sri Lanka Air Force Roshan Gunathilleke are also scheduled to attend the ceremony.

The Ministry of Defence on Friday convened a press conference to announce the preparations for the ceremony. Commanders of the Navy and Air Force, Army Chief of Staff, senior military officials and Ministry representatives were present at the press briefing.

Defence Secretary Air Vice Marshal Sampath Thuyacontha (Retd) underscored the national significance of the annual commemoration, paying tribute to the brave men and women of the armed forces, Sri Lanka Police and Civil Security Department who laid down their lives in the defence of the nation.

He reiterated the Ministry’s and the Tri-forces’ commitment to preserving the memory of fallen heroes, ensuring that their legacy of patriotism, sacrifice, and unwavering commitment to duty continues to inspire future generations.

During the briefing, officials of Ranaviru Seva Authority and armed forces provided an overview of the ceremonial proceedings, which will include wreath-laying, special tributes, and military honours, with the participation of distinguished guests, military personnel, and the families of war heroes.

The event seeks to serve as a solemn occasion for the nation to express its gratitude and respect for those who selflessly served the country’s sovereignty and national security.

The Ministry of Defence calls upon all citizens to stand in solidarity in remembering the nation’s war heroes, reaffirming collective appreciation for their dedication to protecting the country and its people.

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NMRA chief resigns, citing threats to life

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Saveen Semage, the Chief Executive Officer (CEO) of the National Medicines Regulatory Authority (NMRA), resigned with immediate effect yesterday, citing threats to his life.

On May 9, CCTV in his home captured two men breaking in and walking around the residence for around half an hour from 11.30pm to midnight. They were observed peeping into the bedroom where Dr. Semage slept. His wife and children were also asleep in the house.

Dr. Semage, a public health specialist, was appointed to the position in January 2024. He was also previously CEO from November 2021 to May 2022, when he resigned over differences with former Health Minister Keheliya Rambukwella. He was brought back last year by Ramesh Pathirana—who replaced Minister Rambukwella after he was forced to resign over irregularities in drug procurement—to clean up the drugs regulatory mechanism.

However, he faced stiff resistance from the pharma industry, particularly in his efforts to break drug monopolies and oligopolies that were blamed for rigging tenders (typically agreements among competitors to fix prices, allocate markets, or engage in other anticompetitive activity). He was also a victim of social media attacks largely blaming him for being politically motivated.

“There was a lot of tension within the NMRA and the pharmaceutical industry during the last two to three weeks because of my efforts in pricing and in breaking monopolies and oligopolies to save public funds,” Dr. Semage told the Sunday Times. “I think the break-in was a threat in an effort to remove me.”

“During the past 15 months, the NMRA has cleared the backlog of registrations and streamlined re-registration for drugs. He was also able to trace fake documents and to kick-start a digitalisation process that abruptly came to an end in 2021 when the NMRA database was mysteriously erased. During his term, the Authority also doubled its staff, taking in 30 new pharmacists, among others. The National Advisory Committee and Appeals Committee were also put in place, and a pricing mechanism, along with guidelines, was published.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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Dual citizenship backlog: 1000 to be issued soon

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The Department of Immigration and Emigration is struggling with a backlog of more than 3,000 dual citizenship applications piled up over the past few months, with some papers submitted more than seven months ago remaining unattended.

At least 1,000 of these applications have got the all clear from the relevant authorities, including clearance from the Police and the State Intelligence Service (SIS), but the applications have stalled at the department level, the Sunday Times learns.

The main dual citizenship applicant is required to pay US$ 2000 (around Rs 600,000), with the spouse and unmarried children below the age of 22 paying US$ 500 each. It is this category of applicants who contribute substantially to the income of the department.

Public Security Minister Ananda Wijepala, when contacted by the Sunday Times, admitted the clearance of dual citizenship certificates had slowed down and said that he had instructed the department to immediately begin the issue of certificates to around 1,000 applicants whose background checks had been completed. They will receive the certificates within a week.

“There has been a delay, but I have instructed the department officials to ensure that the work is expedited,” he said. The department’s citizenship division, which handles the applications, comes under a deputy or assistant controller.

Many dual citizenship applications are submitted through Sri Lanka’s overseas missions. “Applicants are inconvenienced by the delay in the issuing of the certificates, as those who have taken foreign citizenships need the dual citizenship from here for their land/property transactions, financial activities, etc.,” an applicant told the Sunday Times.
According to the performance report of the department for 2023, more than 7,300 dual citizenships were issued, but the latest statistics are not yet available.
Meanwhile, the Department of Motor Traffic has run out of new number plates.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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