Friday, November 20, 2020

After imposing heavy taxes on Maldive fish, Sri Lanka says the Maldives there is no ban on imports

Maldive fish production
Following discussions with Sri Lanka's Foreign Minister Dinesh Gunawardena, Fisheries Minister Douglas Devananda and State Minister of Finance Ajith Nivard Cabraal, Maldivian Minister of Foreign Affairs Abdulla Shahid said that there would be no restrictions in importing fish and fish products from the Maldives to Lanka.

However, Sri Lanka recently imposed a heavy tax of Rs. 302 on a kilogramme of imported Maldive fish saying it would encourage local producers. The previous tax was Rs. 102 and it was increased by Rs. 200 since this month. 

Import taxes on fish and dried fish also have been increased.

The Maldivian fisheries industry has been significantly impacted by the COVID-19 pandemic, with several major exporters reporting lower sales. The majority of Maldives' export revenue is sourced from exports of fish products, with raw fish shipments accounting for as much as 70 per cent.

(Photo from The Edition

Only one PCR machine in Sri Lanka's Nuwaraeliya district - MP Velu Kumar

Kandy district MP Velu Kumar
Sri Lanka major opposition Samagi Jana Balavegaya Kandy district MP M. Velu Mumar said that entire Nuwaraeliya district has only one PCR testing machine. 

He expressed these views addressing a press conference held by the opposition today.

He accused that the government had not allocated money to increase health facilities of the poor people like estate workers despite their vulnerability.  

He pointed out that the 2021 budget proposal does not allocate money to buy even the COVID-19 vaccine.  

He said that the government had not provided any solutions to the burning issues of the estate population hiding behind the proposal to increase the estate workers' salary up to Rs. 1,000 per day.

Nuwaraeliya district has a high density of Upcountry Tamils who are mostly low-income plantation workers.


Tuition and nursery education not allowed in Sri Lanka although schools reopen next week

The Secretary to the Ministry of Education of Sri Lanka Prof. Kapila Perera said that the tuition and the nursery education was not allowed in the country although shools outside Western Province would be open from November 23.  

However, some of the tuition is conducted online. 

No trains in Sri Lanka during the weekend

Sri Lanka Railway will suspend all train travels in the island during the weekend of November 21 and 22 to stop the spread of COVID-19. 

Sri Lankan travelers no need to self-isolate on arrival in England

Sri Lanka was added to England's safe travel list on Thursday, November 19th. 

Travellers from Sri Lanka will no longer have to self-isolate on arrival in England from Saturday November 21st.

The other countries that were newly included to this facility are Namibia, Rwanda, Bonaire, St Eustatius & Saba, the Northern Mariana Islands and the U.S. Virgin Islands. 

Sri Lanka does not provide this facility to any country. 

Budget deficit figures in 2021 budget proposals in Sri Lanka wrong - FactCheck

FAct Check budget deficit 2021
Fact Check Sri Lanka stated that Prime Minister Mahinda Rajapaksa's statement on the budget deficit for 2019 increased to 9.6% of GDP was wrong. 

Quoting annual reports from the Ministry of Finance, Fact Check Sri Lanka said, "It is incorrect to compare a value of 5.7% in 2014, which does not account for unpaid claims, against a figure of 8.4% in 2019, which accounts for unpaid claims. It is also inaccurate to calculate the budget deficit by considering unpaid claims in expenditure without applying the same basis to revenue".

Rajapaksa said in the budget speech, "…the budget deficit which my government brought down to 5.7 percent of Gross Domestic Product (GDP) in 2014, has increased to over 9.6 percent of the GDP by 2019… outstanding unpaid bills amounted to Rs. 243 billion, while the foreign debt financed expenditure amounted to Rs. 212 billion remained unaccounted […which] resulted in the reported budget deficit for 2019."

Opposion MP Dr. Harsha de Silva said in a tweet that the Secretary to the Treasury was finally responsible for this kind of errors. He pointed out that he had raised it with him at the Committee on Public Finance while the official tried to justify it."

Read the Fact Check report here >>


Thursday, November 19, 2020

Will Sri Lanka lose GSP+ again?

Will Sri Lanka lose GSP+

(Opinion by Ajith Perakum Jayasinghe, Editor)
 European Union (EU) indicated today that the special Generalised System of Preferences (GSP+) offered by the EU to Sri Lanka hung in the balance. 

GSP+ is the system of preferential trading arrangements through which the European Union extends preferential access to its markets to developing countries. GSP+ provides Sri Lanka competitive, predominantly duty and quota-free access to the EU market. The countries not receiving the benefit question the integrity of the agreement. 

GSP+ is based on the continued implementation of 27 international conventions on human rights, labour, environment, climate change and good governance, the joint statement issued by the Delegation of the European Union (EU) and the Embassies of France, Germany, Italy, Netherlands and Romania declared. 

"Not least due to these unilateral trade preferences, the EU is the second-biggest export market for Sri Lanka worldwide, with a positive trade balance of more than 1 billion EUR (about 220 billion LKR) in 2018 and 2019," the statement said. 

The statement further said, "Trade, however, is not a one-way street. The current import restrictions are having a negative impact on Sri Lankan and European businesses, and on Foreign Direct Investment. Such measures impair Sri Lanka’s efforts to become a regional hub and negatively impact Sri Lankan exports by constraining the import of raw material and machinery. We recall that a prolonged import ban is not in line with World Trade Organisation regulations. Sri Lanka’s withdrawal of support for the United Nations Human Rights Council Resolution 30/1 remains a source of concern. The Government has stated its continuing commitment, including to the EU, to fostering reconciliation, justice and peaceful coexistence among Sri Lanka’s diverse communities. The EU stands ready to support the Government’s efforts in this area. The rule of law and a vibrant civil society are essential in this regard. We are looking forward to continuing our deep engagement with Sri Lanka, in line with our shared international commitments and obligations."

Sri Lanka lost EU's GSP+ concession in August 2010 due to allegations of human rights including evidence of police violence, torture and breach of labour laws, notably the use of underage children.  As a result, the country incurred a massive reduction in export revenue.

Then an EU investigation identified significant shortcomings in respect of three UN human rights conventions. They were the International Covenant on Civil and Political Rights (ICCPR), the Convention against Torture (CAT) and the Convention on the Rights of the Child (CRC). The investigation relied heavily on reports and statements by UN Special Rapporteurs and Representatives, other UN bodies and reputable human rights NGOs. 

However, the United National Party-led coalition government that came to power in 2015 successfully negotiated to reinstate GSP+ in May 2017. 

The current GSP+ scheme is in place until the end of 2023. Early in the year, EU reassured that it would continue GSP+ concessions to Sri Lanka till 2023. However, the EU did not forget to highlight that there would be ‘no changes’ in the rigorous monitoring of the country’s progress in implementing the relevant conventions. 

Sri Lanka's apparel industry accounts for 43% of the country's total exports and generates over $ 5 billion foreign exchange. Daily FT reported in January that over 60% of exports to the EU had benefited the most through the GSP+ concession. "As of 2018 as much as 58% of all Sri Lankan exports benefit from some form of preferential access due to GSP+ and the EU remains the country’s largest export market. Since the resumption of GSP+ concessions in 2017, the value of Sri Lanka’s total exports to the EU market in 2018 recorded a growth of 5% when compared to 2017. As a result, Sri Lanka’s GSP+ utilised exports recorded a year-on-year recorded a growth of 1% in 2018."

List of Conventions to qualify for ‘GSP Plus’ 
Core human and labour rights UN/ILO Conventions (all must be ratified and effectively implemented for GSP Plus to apply):
International Covenant on Civil and Political Rights; International Covenant on Economic Social and Cultural Rights; International Convention on the Elimination of All Forms of Racial Discrimination; Convention on the Elimination of All Forms of Discrimination Against Women; Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment; Convention on the Rights of the Child; Convention on the Prevention and Punishment of the Crime of Genocide; Minimum Age for Admission to Employment (N° 138); Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (N° 182); Abolition of Forced Labour Convention (N° 105); Forced Compulsory Labour Convention (N° 29); Equal Remuneration of Men and Women Workers for Work of Equal Value Convention (N° 100); Discrimination in Respect of Employment and Occupation Convention (N° 111); Freedom of Association and Protection of the Right to Organise Convention (N° 87); Application of the Principles of the Right to Organise and to Bargain Collectively Convention (N°98); International Convention on the Suppression and Punishment of the Crime of Apartheid.  
Conventions related to environment and governance principles (7 must be ratified and effectively implemented for GSP Plus to apply, all must be ratified and implemented by 2009:
Montreal Protocol on Substances that deplete the Ozone Layer; Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal; Stockholm Convention on persistent Organic Pollutants; Convention on International Trade in Endangered Species; Convention on Biological Diversity; Cartagena Protocol on Biosafety; Kyoto Protocol to the UN Framework Convention on Climate Change; UN Single Convention on Narcotic Drugs (1961); UN Convention on Psychotropic Substances (1971); UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988); Mexico UN Convention Against Corruption.
Improving and maintaining the country’s human rights record and strengthening the democratic institutes in Sri Lanka should be the priority of any ruler and that should not depend on the incentives offered by other nations.

White handkerchief marks protest against forcible cremation by the government of Sri Lanka

Sri Lankan civil society is silently but strongly marking their protest against the government's inhuman  forcible  cremation of a 20-da...