IMF Cash in Limbo: Sri Lanka Awaits Crucial Fourth Installment Amid Uncertainty
Colombo Throne Up for Grabs: SJB, NPP, or a Shocking Third Contender?
Gammanpila’s False Claims Exposed
Berlin Boils Over: Diaspora Unleash Fury against Visiting President
Trump’s 90-Day timeline: Tariff Pause Sparks Global Speculation on What’s Next
Trumps 90 days over
On April 3rd President Donald Trump shook the world by imposing a massive tariff applicable across all countries. Some countries were slapped with over 100% tariff and Sri Lanka was subjected to 44% tariff on exports.
Up to then many goods imported from Sri Lanka were not subjected to any tariff in America and the bulk of imports from Sri Lanka such as Garments and rubber based products were subjected to 17% tariff.
However Trump’s new tariff imposed a 44 % across all imports from Sri Lanka which many viewed placing Sri Lanka in a difficult situation to compete in the market with others. With the new tariff rate due to the high price on Sri Lankan imports Amarican’s could refrain from Sri Lankan imports. At present a sizable amount of Sri Lankan garments are imported by America and if these new tariffs take effect would mark the collapse of Sri Lankan garment exports. Due to this fear including the main opposition and the garment exporters advised the government to engage in a dialog with America to get this situation changed.
Despite foreign ministers immediate response in the parliament in response to Opposition Leader Sajith’s appeal , which said government has already taken measures to mitigate the situation however it was subsequently learnt not have taken effect as the minister stated.
10% tariff
However subsequently in two occasion’s government has sent representative from Sri Lanka to negotiate the tariff effect amidst other leading countries had commenced negotiation on this effect with senior officials of Trump’s administration and got a sizable tariff reduction for their exports. For example Indian Prime Minister embarked on an immediate American tour and was able to reduce the imposed 56% per cent tariff up to 26%.
Amidst international opposition Trump administration issued an announcement and said implementation of the new tariff is postponed by 3 months and during this period all countries could negotiate about the imposed tariff. This three months grace period would lapsed on 5th July. Barely two weeks more. One muses the progress Sri Lanka has gain in these negotiations.
Indications are that American government has indicated a possibility of reduce 44% up to 10% however currently if any goods subjected to a tariff rate will be charged along with this 10% for instance at present Sri Lankan exports rubber and Garments are charged 17% and the new tariffon those goods would be 27% with the revision rate. Government has requested a further reduction on this and had proposed in order to bridge the trade deficit between the two countries the willingness to purchase oil and gas from America. It is learned the American response on this is to show it by implementation.
Sources indicate that still no positive response received on Sri Lankan proposals from American government. If the tariff rate is not reduced in a favorable manner it would be a severe blow of our main export good the garments. The manufactures lament if another 10% tariff imposed upon the existing 17% sustaining the industry would be impossible.
No 4th Installment yet
IMF first deputy Managing director Dr Geetha Gopinath is scheduled to arrive in Sri Lanka on the 15th. This visit is the first occasion after 20 years a highest ranking official visiting Sri Lanka.
Geetha Gopinath’s visit could be a very crucial one to Sri Lanka as per political analysts as she is reputed to be a tough decision maker and in a background Sri Lanka still anticipating the release of 4th IMF installment.
Sri Lankan government initiated negotiation with IMF to obtain the 4th installment in February. Both fractions inked the staff level agreements. However Sri Lankan government’s failure to comply with the conditions laid by the IMF agreement the release of the 4th installment was delayed until it is fulfilled. Discussion held in this connection IMF has informed the government to reduce the heavy loss the CEB is making the electricity rates should be increased by 33% and until then the 4th Installment would be stalled.
Until then the release of 4th installment is delayed by 4 months to evade this government recently increase the electricity tariff by 15%. However IMF stand firm and claim this increase is not sufficient and at least the electricity bill should be raised by 18.5 %. With this background Gopinath’s visit is a crucial one for Sri Lanka.
Unofficial sources indicate June 1st IMF is scheduled to meet to discuss this however a date is not yet confirmed as per the same sources. IMF is stressing Sri Lanka government to full fill many more conditions the government agreed and not full filled which is not limited only to the electricity rate. Before the above said meeting Sri Lankan government is expected to fulfill them.
Opposition to Anura
Significantly last week both JVP leader Anura Kumara Dissanayaka and the General Secretary Tilvin Silva departed on overseas tours however to two different destinations.
The President went on an official visit to Germany at an invitation from Germany. Tilvin went on a visit to China at an invitation from China. Several special events that were not reported to the media were witnessed during both these visits.
At the beginning of the President’s visit to Germany, Opposition representatives MP Archuna Ramanathan and former MP Udaya Gammanpila had alleged that during this visit, the President was scheduled to meet Nediyawan, a LTTE leader representing the Tamil diaspora and President had not given the opportunity to meet the German Chancellor or the German Foreign Minister.
However, the statement issued by the Presidential Media Unit before the President left the country clearly stated that the President would meet with the German Chancellor and high-ranking officials of the German government. President had meet and discuss with the foreign minister making one of Gammanpila’s statements, a lie.
As of Friday evening, when this column was written, no meeting had taken place between the President and the German Chancellor. Nor had the media reported that Nediyawan had met.
Meanwhile, on the day after the President arrived in Germany, on the 12th (Thursday), a group representing the Tamil diaspora had also organized a protest against the President in Berlin. On that day, while the President was meeting and holding talks with German President Frank-Walter Steinmeier at Bellevue House, a group gathered in front of the house and raised placards protesting against the alleged massacre in Mulliwella Vaikkal in Sri Lanka in 2009. The most remarkable incident that was witnessed here was that these protesters were shouting and protesting against the President even as he was receiving state honours at Schloss Bellevue
Photo scandal
Meanwhile, a huge controversy also arose last week regarding a photo taken when the President met with the German President. This was due to the fact that a certain party had edited the photo of the President and the German President and published it in the local media. Accordingly, when the relevant photo was rapidly circulating on social media networks, the Presidential Secretariat had sent a letter to the web journalist who had published the relevant photo, asking where the photo had come from. It was also stated that it had been edited. Accordingly, the journalist had immediately removed the relevant photo and had later taken steps to express regret for publishing the photo.
Meanwhile, the President had engaged in a round of discussions with the country’s representatives during his visit to Germany regarding the further extension of the GSP Plus concession, according to the inside politics’ column. The GSP granted by the European Commission The GSP Plus concession is set to expire this year, and a team of senior officials from the European Commission visited Sri Lanka in April to hold discussions on its extension. They also took steps to pay special attention to the human rights situation in Sri Lanka. Since Germany is a powerful country in the European Union, it is also reported that the President discussed with the country’s representatives during his visit regarding the extension of the GSP Plus concession.
Conditions for Tilvin
While the President was visiting Germany, Mr. Tilvin Silva on a visit to China last week with several MPs from the Compass. Tilvin and his group, who went to China at the invitation of the Chinese Communist Party, had first met with the Governor of Hejiang Province Liu Jie and held talks. After that, the group had visited the International Geographic Information Center in Wusu Village in the Chin Region and a wetsuit manufacturing factory. Tilvin and his group had paid special attention to how the garbage problem in Wusu Village had been solved using modern technology.
However, although all this was reported to the media, there was a part of Tilvin’s trip to China that was not reported to the media. That was regarding the fact that Sri Lanka had not yet granted permission for China’s research vessel to enter Sri Lankan waters during the discussion held with the Chinese authorities.
During the President’s visit to China after assuming power, a promise was made to amend the relevant agreements to allow Chinese research vessels to enter Sri Lankan waters, but it is learnt that the Chinese authorities have reminded Tilvin again that the President has not fulfilled that promise so far. It is also learnt that Tilvin has agreed to discuss the matter with the President after his arrival in Sri Lanka.
Sajith commences the battle
Opposition Leader Sajith Premadasa had taken steps to stay home for a few days due to sudden illness during the last parliamentary week. While he was spending his time quietly at home without meeting any outsiders, many thought that Sajith had abandoned the fight and gone into the jungle in the midst of the operation to establish power in local government institutions.
Otherwise, he was said to have made a deal with Anura and allowed the government to establish power in local government institutions where the compass does not have a majority and remained silent. However, despite being at home due to illness, Sajith had not given up the operation to establish power in local government institutions where the government does not have a majority.
Sajith was engaged in lengthy discussions on seizing power in local government institutions during those days, engaging in frequent telephone conversations with party General Secretary Ranjith Madduma Bandara and the party’s national organizer Tissa Attanayake. During those discussions, it was also decided to impose several conditions on all SJB local government representatives.
One of the conditions was that after the council began under the chairmanship of the provincial commissioners, the posts should be elected through an open vote and the vote should be cast. The second condition was that when the party selected the mayor, deputy mayor or chairman, the MPs should vote for the selected candidate. It was decided that disciplinary action would be taken against all local government MPs who did not do so and that they would be expelled from the party.
Sajith came directly to the opposition leader’s office last Monday as soon as he recovered from his illness. This was because the parliamentary group meeting was scheduled to be held that day. Accordingly, Sajith informed all the MPs that all steps should be taken to establish power in the local government institutions where the government did not have a majority in their respective districts.
Also, another special discussion was held at the opposition leader’s office under the chairmanship of Sajith that day. It was between the United National Party and the SJB. The UNP was represented by Party General Secretary Thalatha Athukorala and National Organizer Sagala Ratnayake.
In addition to Sajith, the SJB was represented by Tissa Attanayake and Nalin Bandara. Something should also be mentioned about Tissa and Nalin. Tissa and Nalin had played a major role in the operation to gain power in local government institutions where the government did not have a majority. Although the party General Secretary usually had to shoulder the greater burden, last week, the fact that SJB General Secretary Ranjith Madduma Bandara had gone abroad to rest.
Thalatha’s reply
However, during this operation, the compass had managed to seize power in Uva Paranagama, a Pradeshiya Sabha where the opposition had a strong majority. The reason for this was that the UNP MP had voted in favor of it in the secret ballot to elect the chairman. As soon as this was reported, Sajith immediately took steps to inform UNP General Secretary Thalatha Athukorala about it.
Sajith also spoke to Sagala and informed him about it and asked them what action he would take in this regard. Accordingly, Thalatha and Sagala directly informed Sajith that the party was ready to take definite action against the MP based on the decision taken earlier to expel him from the party if he went against the party’s views.
Thereafter, Sajith spent the last week in discussions regarding the establishment of power in the Colombo Municipal Council. Although the leaders of the Malima government, Lalkantha, Nalinda Jayatissa, and Sunil Watagala, had already confirmed that the Colombo Municipal Council would definitely establish by Malima.
Sajith, regardless of any of that, launched a separate operation to ensure that the SJB would gain power in Colombo. Accordingly, Sajith took steps to bring representatives of all the groups that had elected as independent candidates to Colombo separately for discussions. Many independent groups, who were unable to make a decision and were hesitating, agreed to support the SJB mayoral candidate.
An opposition informant
However, last week, Dilith Jayaweera, the leader of the Universal Power, had hinted that he had a proposal to field a separate candidate for Colombo from his party. However, following Dilith’s statement, several parties had held secret discussions with him last week, and in the end, the Universal Power proposed that in order to support the SJB candidate in Colombo, the Universal Power would need the chairmanship of any local council in Sri Lanka. After presenting their proposal to Sajith, Sajith finally agreed to the Universal Power proposal and took a step back due to his strong desire to unite the opposition.
However, the independent group that contested under the butterfly symbol is a very decisive factor in determining the power of the Colombo Municipal Council. This is because the party that receives their support will definitely be able to capture power in the Colombo Municipal Council.
Throughout the past, the group that requested this butterfly from the party was in a position of swaying between the two, expressing opinions in favor of both the Compass and the SJB. Accordingly, last week, Sajith took steps to meet this independent group separately and discuss. However, at the end of this discussion, Sajith had to face a strange incident. That is, when he came out of the Opposition Leader’s office after the discussion, Sajith received a phone call from a person who is known for the deals that are currently being made to gain power to Compass in Colombo.
This person, who has been a member of various parties, asked Sajith what the results of the discussion were. Although Sajith’s eyes widened at this statement, Sajith, who did not show it, gave a vague answer and took steps to investigate who the person who leaked the discussion he had with the independent groups was. Clearly realizing that the tip had gone from within the Opposition Leader’s office, Sajith also took steps to find the informant inside within a few hours. Accordingly, it is also reported that Sajith has now decided to take some action regarding him in the future.
