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Monday June 3rd, 2024

Sri Lanka plans to sell tickets in US dollars to tourists: Minister

ECONOMYNEXT – Sri Lanka is considering selling tickets to tourists in US dollars in a bid to raise money to import spare parts Transport Minister Bandula Gunawardana said amid the worst currency crisis in the history of the island’s intermediate regime central bank.

“I plan to ask permission from the central bank to charge for tickets in US dollars,” Minister Gunawardana said.

“Hotels charge in US dollars, I do not see why we cannot.”

Sri Lanka’s Department of Railways is finding it difficult to import spare parts for its old engines, he said.

Minister Gunawardana hiked fares to half that of buses and has sharply reduced operations losses, he said.

Minister Gunawardana has also proposed to call international tenders to sell metal scrap to raise dollars for Sri Lanka Railways.

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Sri Lanka railways seek forex from scrap metal amid currency crisis

Sri Lanka has an intermediate regime central bank (a soft-peg) which collapses and forex shortages emerge whenever aggressive open market operations are employed (liquidity is injected) to artificially suppress interest rates.

Sri Lanka’s economists got the power to print money in 1950 through US designed Latin America style, though they were not explicitly given the power to depreciate the currency, as the agency was required to maintain a peg to gold at 1.99 grains of gold.

However the rules were relaxed in 1980s, after the US dollar was floated in the 1970s and it was made earlier to depreciate the rupee to compensate for monetary policy errors under so-called basket, band, crawl (BBC) policy that was peddled by Washington based Mercantilists, critics say.

Latin America style central banks also started to default from the 1980s.

Once the power was given, economists are now unwilling to give up the power to print money and depreciate the currency though calls are intensifying to harden the peg block monetary instability.

Over the year economists have lobbied politicians to control and exchange control and import control laws and curtail the economic freedoms of citizens during successive currency crises and money printing depleted reserves.

Money laundering laws were deployed against citizens who use US dollars in the current crises to enforce a state monopoly in money, legal tender. (Colombo/Sept27/2022)

Comments (2)

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  1. joe says:

    Going forward do not use Rupees in Sri Lanka. They can start using USD to buy their daily needs in Sri Lanka from groceries as well. I don’t think you see a problem with it right? Analyse and see why this was not done for the last 74 years. Then you will get the right answer.

  2. citizen says:

    So under these proposals, all railway ticket offices will keep US dollar change to give to tourists or internet enabled card readers? More targets for crooks

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Your email address will not be published. Required fields are marked *

  1. joe says:

    Going forward do not use Rupees in Sri Lanka. They can start using USD to buy their daily needs in Sri Lanka from groceries as well. I don’t think you see a problem with it right? Analyse and see why this was not done for the last 74 years. Then you will get the right answer.

  2. citizen says:

    So under these proposals, all railway ticket offices will keep US dollar change to give to tourists or internet enabled card readers? More targets for crooks

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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