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SC dismisses another FR petition against DDR

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The Supreme Court today dismissed another Fundamental Rights petition that was filed against the inclusion of the EPF and ETF in the scope of domestic debt restructuring.

The Supreme Court three-judge-bench comprising Justices Vijith Malalgoda, Janak de Silva and Gamini Amarasekara, refused to grant leave to proceed with the petition after hearing all parties for two days.

M.A. Sumanthiran PC, who appeared for the petitioner told court that the invitation to extend the time period of the Bonds (loans) acquired by the State from superannuation funds (EPF and ETF) violates the Fundamental Rights of the members of the Funds as it is unequal, unreasonable and arbitrary and against the Constitution.

The petitioner had named the EPF, ETF, Monetary Board and Public Debt Department of the Central Bank of Sri Lanka as respondents in this application.

Counsel appearing for the respondents submitted to court that the court has no jurisdiction to hear the matter according to the Constitution.

Senior Counsel Eraj de Silva, representing the ETF, argued that in accordance with Articles 4 and 148 of the Constitution, Parliament wields complete control over the nation’s public finances. Hence, the judiciary should not intervene in decisions sanctioned by Parliament.

De Silva also highlighted to court that the Domestic Debt Restructuring regarding the EPF and ETF is ultimately designed to safeguard the funds of the people. If the State were to default on repaying the Bonds, it would result in turmoil, leaving nothing for the Fund’s members. He emphasized that the evaluation should not solely consider the current circumstances, but rather the potential outcomes in the event of default or increased money printing leading to inflation.

De Silva further brought to the court’s attention that the petitioner failed to disclose his affiliation with the NPP (National People’s Power) and his previous candidacy in an election on behalf of the NPP. He argued that the NPP’s stance against the Domestic Debt Restructuring process was pertinent information that the petitioner should have divulged.

“It is evident that the petitioner’s affiliated party aims solely to derail the debt restructuring process without providing a viable alternative,” De Silva remarked.

Eraj de Silva, with N.K. Ashokbharan, Daminda Wijeratne, Janagan Sundramoorthi, Shehan Chamika Silva, Zul Luthufi, and Naveed Ahamed, instructed by Dinesh Vidanapathirana, appeared on behalf of the ETF.

(dailymirror.lk)

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IMF grants waivers despite obligation breach & erred reporting

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The Executive Board of the International Monetary Fund (IMF) reviewed non complying purchases made by Sri Lanka under the 2023 Extended Arrangement under the Extended Fund Facility (EFF) as well as inaccuracies of information reported to the IMF.

However, the IMF has decided to grant waivers and not pursue further action, citing corrective measures and a commitment to reform by Sri Lankan authorities.

Following the Executive Board’s discussion, Deputy Managing Director and Acting Chair – Mr. Kenji Okamura, has issued the following statement:

“The Executive Board of the International Monetary Fund (IMF) reviewed non complying purchases made by Sri Lanka under the 2023 Extended Arrangement under the Extended Fund Facility (“EFF”), as well as a breach of obligations under Article VIII, Section 5. The noncomplying purchases arose as a result of the provision of inaccurate information by the authorities on the stock of expenditure arrears at the first, second, and third reviews under the EFF.

“The inaccuracies in information provided to the IMF were inadvertent and arose because of weaknesses in the timely reporting of arrears by line ministries to the Ministry of Finance, as well as a misunderstanding by the authorities of the definition of “arrears” under the Technical Memorandum of Understanding. 

“The Executive Board positively considered the authorities’ corrective actions, the fact that arrears repayments will be accommodated within the existing fiscal envelope, and the authorities’ commitment to improving public financial management procedures in line with the new PFM law, to reduce the risk of accruing arrears or inaccurate reporting of information going forward. In view of the above, the Executive Board agreed to grant waivers for the nonobservances of the quantitative performance criterion that gave rise to the noncomplying purchases and decided not to require further action in connection with the breach of obligations under Article VIII, Section 5.”

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Abdul Wazeeth appointed to Parliament from SLMC national list

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Abdul Wazeeth of the Sri Lanka Muslim Congress (SLMC) has been appointed as a Member of Parliament, the National Election Commission has announced.

His appointment comes following the resignation of former MP M. S. Naleem, who had entered Parliament through the SLMC National List after the 2024 parliamentary election.

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Tense situation in Kahawatta as residents clash with police

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Police had been compelled to use tear gas to control a tense situation that erupted between residents and police in Kahawatta following the funeral of a youth who was shot dead recently.

The funeral was held today (July 03) and the clash had broken out shortly afterwards.

Residents had expressed anger over the handling of the and had hurled stones at the police, reports say.

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