SRI LANKA NEWS
(OCTOBER 2022)
Compiled by Victor Melder
Inflation in capital Colombo, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), rose to 69.8 percent in September, from 64.3 percent in August, as the crisis-struck nation continues to battle with exorbitant prices. According to the government’s statistics office, both food and non-food categories drive September’s inflation.
Food inflation increased to 94.9 percent in September, from 93.7 percent in August while non-food inflation surged to 57.6 percent, from 50.2 percent. Within the food category, increases were observed in the prices of fruits, chicken and wheat flour. However, the prices of rice, dhal and sugar decreased during the month. Within the non-food category, increases were observed in the prices of housing, water, electricity, gas and other fuels (electricity bill, water bill and kerosene oil), restaurant and hotels, health, education (international school fees), communication (telephone charges) and miscellaneous goods and services sub-categories during the month. Sri Lanka in mid-August materially hiked electricity and water tariffs to cut losses at state-owned utilities and as part of a broader reform program to obtain an International Monetary Fund bailout package. Sri Lanka also hiked taxes significantly to boost government revenue, overhauling the sweeping tax cuts that were introduced in late 2019, which according to many, was the root cause for the current unprecedented economic crisis. Meanwhile, core inflation, which reflects the underlying inflation in the economy, increased to 50.2 percent in September, from 46.6 percent in August. The Central Bank in August said Colombo inflation, the inflation gauge preferred by officials, may peak below 70 percent. (Daily Mirror Online, 1.10.2022)
President Ranil Wickremesinghe has revoked the Gazette notification declaring specified areas in Colombo and Greater Colombo as High Security Zones under the Official Secrets Act amidst questions over the legality of the decision. The new Gazette notification by the Defence Ministry was issued hours after President Wickremesinghe returned to the country from his visit to Japan and the Philippines. A senior government official said the decision was taken as there was a “legal issue” over the original Gazette notification issued on September 23 following an order by the President on September 16 prior to his departure for Britain to attend the state funeral of Queen Elizabeth II.
Eight locations which included the Parliament Complex area, the Appellate Court complex, the Presidential Secretariat, the Ministry of Defence and the Army, Navy, Air Force and Police headquarters were declared as HSZs. The declaration was made under the Official Secrets Act of 1955. However, the senior official pointed out that during subsequent consultations it was revealed that the Emergency Regulations would have to be in place for declaration of the HSZs. The legality of the declaration of HSZs under the Official Secrets Act was also a matter of concern. The decision drew in a host of protests and at least two Fundamental Rights petitions have been filed over the issue . One of them was filed by Samagi Jana Balawegaya (SJB) Parliamentarian Sarath Fonseka and Attorney-at-law Sudath Wickramaratne while the other petition has been filed by SJB MPs Harshana Rajakaruna and Mujibur Rahaman. The regulations contained strict restrictions on those entering the HSZs and could also have an impact on the residents living within these zones (Sunday Times, 2.10.2022)
The research team working on the ‘Taxonomy of the genus Lagenandra’, have named a new endemic Lagenandra species as Lagenandra peradeniyae Madola, D.Yakandawala and K.Yakandawala with two infraspecific taxa; Lagenandra peradeniyae var. peradeniyae and Lagenandra peradeniyae var. speciosa. in honour of the University of Peradeniya. The plant is known in Sinhala by the vernacular name ‘Kethala’ and occurs in the wet zone of the country. The research publication on naming of the new plant species was published in the latest issue of the international journal Phytotaxa Volume 567 No 1. The genus Lagenandra belongs to the family Araceae. Sri Lanka harbours 12 species and the new discovery brings the number to 13. Out of these, 12 species are endemic to the country. According to the IUCN Red data criteria the plant is categorized as Critically Endangered (CR). Lagenandra peradeniyae could be considered as one of the most attractive Lagenandra species with a colorful inflorescence (Spathe) standing above its attractive leaves. The variety peradeniyae possess a dark maroon spathe with dark green leaves variegated with silver patches, while the variety speciosa possess a light green/yellow spathe mixed with maroon/purple and light green leaves with silver colour appearing towards either side of the mid rib. As the plants are restricted among few populations, responsible authorities should initiate measures to prevent illegal collections. The research team comprised Prof. Deepthi Yakandawala (Department of Botany, University of Peradeniya), Prof. Kapila Yakandawala (Dept of Horticulture & Landscape Gardening, Faculty of Agriculture & Plantation Management, Wayamba University of Sri Lanka), Indrakheela Madola (Dept of Horticulture & Landscape Gardening, Faculty of Agriculture & Plantation Management, Wayamba University of Sri Lanka).(Daily News, 5.10.2022)
Sri Lanka’s trade deficit contracted in August 2022 as import expenditure declined, year-on-year, for the sixth consecutive month, while earnings from exports increased, the Central Bank reported in its External Sector Performance review for the month. Merchandise trade deficit declined to US$ 264 million in August 2022, compared to US$ 586 million in August 2021. The cumulative deficit in the trade account during March to August 2022 contracted to US$ 3.899 billion from US$ 5.507 billion recorded over the same period in 2021. Earnings from merchandise exports in August 2022 grew by 11.2 percent over August 2021 recording US$ 1.224 billion. An increase in earnings was observed in industrial exports and agricultural exports, while a decline was recorded in mineral exports. Earnings from the export of industrial goods increased by 12.6 percent in August 2022 to US$ 965.3 million, compared to US$ 857.4 million in August 2021. Total earnings from the export of agricultural goods in August 2022 increased by 6.2 percent to US$ 254.2 million, compared to August 2021, mainly attributed to the exports of tea. Export earnings from tea in August 2022 Increased by 6.5 percent. Expenditure on merchandise imports in August 2022 declined by 11.9 percent to US$ 1.486 billion, compared to US$ 1.687 billion recorded in August 2021. A decline in expenditure was observed in import of non-food consumer goods and investment goods, while an increase was recorded in import of food and intermediate goods. Meanwhile, import expenditure on a cumulative basis from January to August 2022 amounted to US$ 12.8 billion, which is a decline of 4.6 percent (y-o-y). Earnings from tourism are provisionally estimated at US$ 68 million for the month of August 2022, in comparison to US$ 85 million in July 2022. Workers’ remittances increased by 52 percent in August 2022, year-on-year, to US$ 325 million from US$ 279 million in comparison to US$ 279 million in the previous month, recording the highest monthly remittances thus far during 2022. A marginal net inflow of foreign investment was recorded in the government securities market in August 2022. The net inflows from the government securities market in August 2022 amounted to US$ 6 million. Meanwhile, on a cumulative basis, the Colombo Stock Exchange (CSE), including primary and secondary market transactions, recorded a net inflow of foreign investments amounting to US$ 97 million during the eight months ending August 2022. Gross official reserves stood at U$ 1.7 billion at end August 2022. This included the swap facility from the People’s Bank of China equivalent to around US dollars 1.4 billion, which is subject to conditionalities on the usability. Total foreign assets, which consist of gross official reserves and foreign assets of the banking sector, amounted to US$ 5.7 billion at end August 2022. Exchange rate continued to remain stable through August 2022, following the introduction of daily permissible band in mid-May 2022. Accordingly, during the year up to 06 October 2022, the rupee recorded a depreciation of 44.8 percent against the US dollar. (Colombo Page, 7.10.2022)
There had been a 10% increase in remittances from the expatriate Sri Lankan workers, in September, compared to the previous month, Minister of Labour and Foreign Employment Manusha Nanayakkara said. Statistics released by the Central Bank of Sri Lanka (CBSL), on Saturday, showed that workers’ remittances increased to 359 million US dollars in September 2022, from 325 million US dollars in August.Compared to July 2022, workers remittances have increased by 29 percent. This is an increase of 80 million US dollars between July and September. However, workers’ remittances in the first nine months of 2022 were still 43 percent lower than the remittances in 2021, the Central Bank said.Last week, the Governor of the Central Bank Dr. Nandalal Weerasinghe said that foreign remittances had increased steadily in the past few months due to the monetary policies they introduced. (Daily Island, 10.10.2022)
Sri Lanka has been included among the Top 10 friendliest countries in the world as per 2022 Readers’ Choice Awards conducted by the popular magazine Condé Nast Traveller. Sri Lanka was ranked at number nine ahead of the Philippines in the ranking. French Polynesia tops the list. “They say you can travel the world and you’ll never find anywhere as welcoming as home, but we don’t quite think that’s true. From the ever-beaming people of Sri Lanka to the famously open-armed population of New Zealand, our planet is home to some seriously friendly countries, ready to share the love they feel for their country with you,” Conde Nast Traveller said.
“So, once again, we asked our readers to vote for the countries they consider to be home to the friendliest people in our 2022 Readers’ Choice Awards,” it added. Following was its description on Sri Lanka. From children to the elderly, the people of Sri Lanka are known for their love of visitors, and genuine desire to help. On the south coast, set sail on a whale watching expedition in Mirissa, shop the colourful boutiques of the fort city of Galle or shack up at the uber-luxe Cape Weligama hotel, occupying a cliff next to the ocean. Make the climb up to the Tea District, where precarious winding roads will lead you into the heart of the country’s tea plantations, or, towards the centre, climb Sigiriya Rock for views far and wide. (Ceylon Today, 10.10.2022)
Cabinet Spokesman Bandula Gunawardena said the Cabinet of Ministers had granted approval for a proposal to downgrade Sri Lanka’s status from a middle-income country to a ‘low-income country’. He said the downgrading will eventually be carried out by international rating agencies. The move comes after Sri Lanka suffered its worst economic crisis in history. The downgrading will help Sri Lanka have more access to international financial assistance. (Ceylon Today, 11.10.2022)
Contradicting Cabinet Spokesman Bandula Gunawardane, President’s Media Division (PMD) said Sri Lanka will remain a middle-income country. The PMD said in a statment that the government is pursuing a “reverse graduation” policy for a limited period of time. Cabinet Spokesman Bandula Gunawardane told the weekly Cabinet briefing this morning that the cabinet of ministers had approved a proposal to downgraded Sri Lanka from a middle income to low income status. The immediate rectification by the President’s Office seems to show a rift between the Cabinet of Ministers and President Ranil Wickremesinghe. (Daily Mirror Online, 11.10.2022)
The ousted regime’s prioritization of political expediency over the national interest coupled with their currency printing spree exercise aimed at keeping interest rates at a low level, resulted in the country’s economic woes, Central Bank Governor Dr Nandalal Weerasinghe said. “Today the SME sector is badly hit due to high interest rates. The reasons for it is traceable to the ousted regime keeping interest rates at a low level together with heavy money printing. This resulted in the current high inflation rate in the country, Dr Weerasinghe told the media at the monthly monetary policy review meeting held at the Central Bank auditorium last week. Dr. Weerasinghe added: ‘Steeply rising prices are a bigger threat to businesses than high interest rates which will have to be maintained for a time until inflation starts to ease. ‘Sri Lanka is now experiencing the result of past money printing and if rates are cut now, runaway inflation could be the result. “Higher interest rates are a cost to any business, but inflation drives up all costs. Interest rates are raised by a Central Bank as an independent decision taking into account economic conditions and inflation. “It is said that the rupee fell from Rs 200 to Rs. 360 to the US dollar in 2022 after two years of money printing to suppress rates and inflation had hit close to 70 per cent by September. “Interest rates were kept down for a time. In the recent past enough money was printed. We are seeing the result of that.” Meanwhile, a top economist who preferred anonymity told The Island Financial Review that ex-President Gotabhaya Rajapakse totally messed up the economy, independent of the Covid crisis. Towards the end of 2019, and in early 2020, the government enacted deep tax cuts in fulfilment of an election promise, presumably to help its election backers and stooges. This led to the loss of approximately one million taxpayers between 2020 and 2022. Therefore, the country lost more than Rs 500 billion in tax money per year, due to tax cuts. The economist said that this year the economy is expected to contract by around 8 per cent of gross domestic product as investment and consumption falls as efforts are made to stabilize the economy, compounded by lack of capital inflows due to weak confidence and banks also repaying foreign credits. (Daily Island, 11.10.2022)
The Cabinet of Ministers has approved to increase the compensation paid to the next of kin of a missing person to 200,000 rupees. Based on the certificate of missing issued by the Registrar General for the families of the missing persons, it was decided at the meeting of the Cabinet of Ministers held on 14 March 2022 to pay a sum of 100,000 rupees to the closest relative of the missing person. However, due to taking a long time to obtain the certificate of missing, as well as the amount of 100,000 rupees not being sufficient, the Cabinet of Ministers have approved a proposal submitted by the Minister of Justice, Prisons Affairs and Constitutional Reform to double the compensation to 200,000 rupees. The cabinet also approved to ignore the requirement of obtaining the certificate of missing if the compensation secretariat has confirmed that the relevant person is missing. (Colombo Page, 12.10.2022)
A new study by the University of Peradeniya revealed that around 9.6 million Sri Lankans live below the poverty line. University of Peradeniya Department of Economics and Statistics Professor Wasantha Athukorala said that 42% of the people are currently suffering from destitution. As per the study, in 2019 nearly three million people lived below the poverty line, but that number has increased to 9.6 million in October 2022. (Daily Financial Times, 13.10.2022)
According to the Disaster Management Center, 21,888 people belonging to 5,212 families in 11 districts have been affected by the heavy rains with strong winds lashing many parts of the island for several days. Four deaths have also been reported due to the inclement weather. Among the affected, 264 people belonging to 64 displaced families are sheltered in 4 safe places, the Center also states. The people of Hambantota, Galle, Trincomalee, Kilinochchi, Gampaha, Colombo, Kalutara, Kegalle, Ratnapura, Puttalam and Kandy districts have been affected. Assistant Director (Media) Pradeep Kodippili said that 117 houses were partially damaged and 2 more houses were completely destroyed due to this disaster. Mr. Kodippili said that Gampaha district has been the most affected and 19,585 people belonging to 4,608 families in that district have been affected.Due to the prevailing heavy rains, the National Building Research Organization has issued red alerts for landslides for seven Divisional Secretariat Divisions in Kalutara, Nuwara Eliya and Ratnapura districts to be valid until 4.00 pm today (15). Sri Lanka Army troops engaged in rescue operations overnight at a two-storied house that was buried due to the collapse of an earthen mound recovered the dead bodies of the mother and the son of the family during early hours on Saturday (15). The father of the family was rescued last night and sent to the Warakapola Hospital for treatment. Meanwhile, Police have cautioned the tourists to avoid visiting the Ravana waterfall on the Ella-Wellawaya main road or bathing near it as the water level of the Ravana waterfall has risen due to the heavy rains in the area. Director of Irrigation (Hydrology and Disaster Management) SPC Sugiswara meanwhile, said there is a possibility of flooding in urban areas of Gampaha, Colombo, Kalutara and Galle districts due to the prevailing heavy rains. According to the current situation, the director also requests the people living in the lowlands around the Kudi Ganga and Maguru Ganga belonging to Bulathsinghala and Palindanuwara Divisional Secretariat Divisions in Kalutara District as well as the people living in the lower area of Attanagalu Oya in Gampaha District to be vigilant as the areas at risk of minor flooding. He also said that if there is high rainfall in the upper reaches of the main rivers in the near future, significant flooding may occur. The director said that the Irrigation Department is constantly paying attention to the matter and said that early warning notices will be issued if a dangerous situation occurs. He said that the people of the concerned areas as well as the motorists passing through the areas should pay attention to it. Meanwhile, the Department of Meteorology said the low-level atmospheric disturbance still persists in the vicinity of the island and heavy showers above 100 mm can be expected at some places in Western, Sabaragamuwa, and Central provinces and in Galle and Matara districts. fairly heavy showers above 75 mm can be expected at some other places. (Colombo Page, 15.10.2022)
The economic crisis has impacted 96% of households with food, health costs and livelihoods at the top of listed concerns, reveals the latest Economic Survey Report released last week by the Sri Lanka Red Cross Society (SLRCS) and the International Federation of Red Cross and Red Crescent Societies (IFRC). The psychological wellbeing and education of children was also listed as a major priority of concern. It found that 5.7 million – 26% of the population – require urgent humanitarian assistance and ‘upstream’ interventions. The numbers are very likely to multiply and consequences will depend, the report adds. The survey conducted by the agencies engaged 2,871 respondents across 11 districts and studied insights on impacts of the current crisis on food security, livelihoods, health and protection. “Unless critically damaged systems, services and facilities are urgently restored, it is likely that those who are already vulnerable will be pushed further down a pathway to destitution. Households and families across the country are already employing negative coping strategies such as reducing meals, postponing medical care, taking children out of school, and employing children for income, or selling assets,” the report found. The rise of crime and human trafficking was also noted in the report. Incomes have almost halted in 11% of households surveyed and decreased for 62% following the onset of the economic crisis. Over 85% of households have deployed diverse coping mechanisms, with segments involved in agriculture, fisheries and transportation amongst the worst affected. Four out of five estate households, two-thirds of rural households and half of urban households had moved deeper into debt with the onset of the crisis.Half of the households surveyed were consuming less animal products, whilst one in ten have completely stopped. One-third of households had reported lack of access to critical medicines, with sections of several vulnerable groups including pregnant mothers experiencing difficulty to travel to obtain medical care. The SLRCS Economic Survey found that three times more households currently have members wanting to migrate abroad. The report recommends that support efforts should be integrated as part of a wider coordinated approach targeting vulnerable persons, including urgent provision of food assistance or cash vouchers to address the critical requirements. (Daily Financial Times, 17.10.2022)
By end May 2022, total outstanding domestic debt amounted to Rs. 12,522.1bn while the rupee value of total outstanding foreign debt amounted to Rs. 11,529.2 bn, outstanding central government debt increased to Rs. 24,051.4 bn by end May 2022 from Rs. 17,589.4 bn as at end 2021. The reserve money increased compared to the previous week mainly due to increase in the deposits held by the commercial banks with the Central Bank. The total outstanding market liquidity was a deficit of Rs. 515.506 bn by the end of this week, compared to a deficit of Rs. 517.43 bn by the end of last week. The report further said: IIP in August 2022 decreased by 14.3 per cent to 90.5 compared to August 2021. Among the major sub divisions of the manufacturing industries, “coke and refined petroleum products” (72.4 per cent) and “Food products” (12.5 per cent) have mainly contributed to this overall decrease. During the period under review (08.10.2022 to 14.10.2022) crude oil prices showed a decreasing trend. At the beginning of the period, prices decreased due to growing risks of global recession and the resumption of COVID-19 containment measures in China. However, prices increased towards the end of the week on concerns surrounding OPEC+’s substantial supply cut last week. Overall, during the period under review, Brent and WTI prices decreased by US dollars 2.09 per barrel and US dollars 2.42 per barrel, respectively. Weekly AWPR for the week ending 14th October 2022 increased by 203 bps to 28.73 per cent compared to the previous week.By 14th October 2022, the All Share Price Index (ASPI) increased by 0.48 per cent to 9,093.37 points and the S&P SL 20 Index increased by 0.39 per cent to 2,782.73 points, compared to the index values of last week. During the year up to 14th October 2022, the Sri Lankan rupee depreciated against the US dollar by 44.8 per cent. Given the cross currency exchange rate movements, the Sri Lankan rupee depreciated against the Indian rupee by 39.0 per cent, the Euro by 36.2 per cent, the pound sterling by 34.3 per cent and the Japanese yen by 29.4 per cent during this period. (Daily Island, 17.10.2022)
The entomological team of the Medical Research Institute has succeeded in finding a new species of mosquito increasing the biodiversity of Sri Lanka. The mosquito species has been reported from Mirigama and Kalutara areas of Sri Lanka. Culex (lephoceraomyia) cintellus Culex cintellus is currently reported from countries such as Thailand and India. Whether or not this mosquito species is a disease carrier is still under research and has not been reported as a disease carrier in the world. In addition to this, the same group recently discovered a species of mosquito called Culex niinfula cx.sp near infula belonging to the genus Culex.That mosquito is very close to the species of mosquito Culex infula that spreads cerebral malaria in India and whether it is a carrier or not in Sri Lanka is still under research and there is a high probability of this being a carrier. (Daily News, 17.10.2022)
The Outstanding Government debt has surpassed the Rs. 24 trillion mark in May as per provisional data released by the Central Bank last week. As at the end of April, debt stood at Rs. 23.3 trillion and a year ago (May 2021), it amounted to Rs. 17.58 trillion. The year on year increase is 36.8% or Rs. 6.47 trillion. Provisional data for May has been pending for three months after the April figure was first announced in early July. Of the Rs. 24 trillion debt, total outstanding domestic debt as at May 2022 amounted to Rs. 12.55 trillion while the rupee value of total outstanding foreign debt was Rs. 11.59 trillion. CBSL said the debt data for May are highly provisional as the outstanding central Government debt excludes several overdue debt service payments after 12 April 2022, the date of which the Interim Policy regarding the servicing of Sri Lanka’s external public debt was announced by the Ministry of Finance, Economic Stabilisation and National Policies. These debt service payments include overdue interest payments of affected debt which are deemed to be capitalised as per the Interim Policy, it added. In the presentation to creditors in September, central Government debt was stated as $ 70.3 billion or 106.1% of GDP as at end June 2022 and the public debt was $ 80.5 billion or 121.6% of GDP. Sri Lanka’s debt has been classified as unsustainable by the International Monetary Fund (IMF) which is supporting the Government’s efforts to restructure. (Daily Financial Times, 18.10.2022)
A total of 183 Sri Lankan nationals who had been seeking asylum in Australia were sent back, Commander Maritime Border Command and Commander of Joint Task agency Task Force, Operation Sovereign Borders Rear Admiral Justin Jones has said. These are from six irregular maritime ventures attempt to reach Australia, said Rear Admiral Jones, who earlier participated in the Heads of Asian Coast Guard Agencies Meeting in Delhi, working with regional partners on civil maritime security, The New Indian Express reported. Jones said the Sri Lankan nationals are trying to enter Australia in fishing boats which are not seaworthy. “It takes around 21 days to reach Australia from Sri Lanka,” he said. “We will stop any maritime people smuggling vessels seeking to reach Australia, and safely return those on board to their point of departure or country of origin, or if required, transfer them to a regional processing country,” Rear Admiral Jones said. “We are aware that several people were recently detained in Kerala for attempting to migrate illegally by boat. I commend the relevant authorities for their swift action, a vital step towards dismantling the criminal people smuggling trade,” Rear Admiral Jones added. (Colombo Page, 20.10.2022)
About 108 elephants are being raised by private owners by the end of 2021, a research study in the Journal of the Asian Elephant Specialists Group has said. The survey was carried out by elephant-scientist Tharindu Muthukumarana of the Elephant Conservation Organization (ECO).Muthukumarana told The Island that this survey did not include elephants from orphanages, zoos, etc. In Sri Lanka, censuses on captive elephants have been carried out since 1946. Nine such surveys have been conducted apart from this year’s survey that conservationists consider controversial. Muthukumarana said that in 2021 a total of 108 elephants were being raised in captivity; they consisted of 72 males and 36 females. Among males there were 18 tuskers. There were also 72 elephant owners in the country. The captive elephants can be found in the following 12 districts; Badulla – 6, Colombo – 18, Gampaha -16, Hambantota – 1, Kalutara – 7, Kandy – 18, Kegalle – 14, Kurunegala – 7, Matara – 5, Moneragala – 5, Polonnaruwa -1 and Ratnapura – 10. Muthukumarana said that the highest number of elephants (12) were owned by Sri Dalada Maligawa Temple in Kandy. He said of the 18 tuskers, 11 were gifted to Sri Lanka by foreign countries––three from India, five from Myanmar and three from Thailand. He said only two calves were born to privately-owned captive elephants. One of them was a female elephant named Pooja born on 5 August 1986 to a female named Lakshmi, owned by someone from Kegalle.The other was a male elephant named Bandara born on 13 October 1992 to a female named Kumari. (Daily Island, 21.10.2022)
The Bill entitled “Twenty Second Amendment to the Constitution” was passed with amendments by the House today (October 21st) with a two-third majority. During the division for the second reading of the 22nd Amendment to the Constitution Bill, 179 parliamentarians voted in favor of the bill and only one MP voted against. Only ruling party Sri Lanka Podujana Peramuna (SLPP) Member of Parliament Sarath Weerasekera voted against it. A total of 45 MPs were absent. The two-day parliamentary debate on the second reading of the 22nd Amendment to the Constitution Bill commenced on Thursday (Oct. 20) and a division was taken at the end of the debate. At the Committee stage, the Third Reading of the Bill was passed by the House, with a majority of two-thirds. When a Division was taken 174 voted in favor and no votes against while one abstained and the Bill was passed with amendments. Accordingly, the speaker informed the House that the third reading of the 22nd Constitution Amendment Bill was passed with amendments. Justice, Prisons Affairs and Constitutional Reforms Minister Wijeyadasa Rajapakshe presented the Bill entitled ‘Twenty Second Amendment to the Constitution’ to amend the Constitution on 10 August. The bill was challenged in the Supreme Court and the apex court cleared the Bill on 6 September ruling that it could be adopted with a two-thirds majority in Parliament and some clauses requiring a nationwide referendum. The Bill aims to empower parliament over the executive president and curbs some of the powers of the president. It will annul the 20th Amendment to the Constitution which gave unfettered powers to the President abolishing the 19th Amendment passed during the Yahapalana government. Under the 22nd Amendment, the President, the Cabinet of Ministers and the National Council will be held accountable to the parliament. Fifteen Committees and Oversight Committees are also accountable to parliament. One of the key provisions in 22nd Amendment is disqualifying dual-citizens from contesting elections in Sri Lanka. (Colombo Page, 22.10.2022)
Sri Lanka’s nationwide inflation in September 2022 determined under the National Consumer Price Index (NCPI) rose to 73.7 percent from 70.2 percent recorded in August 2022 on a year-on-year basis, the Department of Census and Statistics reported Friday. The NCPI for all items for the month of September 2022 increased to 256.2 from 250.4 in the previous month. With respect to September 2021, the reported inflation for the month of September 2022 was mainly due to the higher price levels prevailed in both food and non-food groups. Accordingly, the Year-on-Year inflation of the food group increased to 85.8 percent in September 2022 from 84.6 percent in August 2022 and the Year-on-Year inflation of the non-food group increased to 62.8 percent in September 2022 from 57.1 percent in previous month. Contributions to the inflation rate of September 2022 from food group and non-food group are 40.88 percent and 32.86 percent respectively.The moving average inflation for the month of September 2022 is 36.9 percent. The corresponding rate for the month of August 2022 was 31.3 percent. (Colombo Page, 22.10.2022)
Eight Liberation Tigers of Tamil Eelam (LTTE) members who were serving prison sentences for committing LTTE activities have been granted presidential pardon. Additional Commissioner General of Prisons, Chandana Ekanayake said the President pardoned the eight individuals according to powers vested in him under Article 34 of the Constitution. Accordingly, four inmates who were housed at the Magazine Prison were pardoned on the 21st of October. Two other inmates will be released after cases filed against them before the Court of Appeal is withdrawn. He further said the Attorney General has been consulted for necessary instructions to release two other LTT inmates after the completion of their rehabilitation work and they will be released according to the instructions and orders from the Attorney General. (Colombo Page, 24.10.2022)
The annual taxes on Casinos have been increased 150 percent from Rs.200 million to Rs. 500 million, State Minister of Finance, Ranjith Siyambalapitiya said in a statement. As taxes are a major source of government revenue, they are used as a social guide and to discourage the sectors that should be discouraged. In the current challenge of generating state revenue, the government has given maximum attention to it, State Minister Siyambalapitiya said. Accordingly, from August 01, 2022, the annual tax amount for a casino was immediately increased to 500 million rupees from 200 million rupees. In addition, the Betting and Gambling Levy Act will be promptly amended with the aim of increasing taxes, the statement said. According to the statement, a high registration fee will be charged for casinos and a USD 200 fee will be levied for a local to enter a casino. For Live Betting Centers, the annual tax will be increased from Rs. 600,000to at least Rs. 1 million while the Turnover tax has been increased from 10% to at least 15%, he said. Meanwhile, the annual levy imposed on betting sub-agents will be increased from Rs.4 million to Rs,5 million while the annual tax imposed on non-live betting centers will be increased from Rs.50,000 to Rs.75,000. The State Ministry of Finance said an income tax of 40 percent will be levied on the income or profit of such businesses. Furthermore, 75 percent tax is being levied from a bottle of alcohol and nearly 85 percent tax is levied on cigarettes. The State Finance Ministry confirmed that an income tax of 40 percent will be charged from the profit of such institutions following the new tax revision. (Colombo Page, 24.10.2022)
