• IMF says authorities disagreed with recommendations on exchange rate policy

• After Indian support, Govt. turns to China for $ 2.5 b and Australia for $ 200 m

• No final outcome of APC; meeting concludes without decision on next steps

• Basil says G-10 programme ‘Hari Maga’ followed; it contains IMF proposals

• Wimal reveals plan, with statistics, to reduce Govt. to less than a simple majority

• Mahindanada heads Government’s media campaign to address negative reports

• Lanza turns down Vasu’s portfolio; NFF’s Asanka also turns down portfolio offer

• Onus on Govt. to implement consensus reached on key issues raised by TNA

  The Government led by President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa is continuing to search for solutions to the snowballing economic crisis in the country by seeking assistance from the International Monetary Fund (IMF) and the international community, especially India and China, but also Australia. Finance Minister Basil Rajapaksa, who is to hold discussions with the IMF in Washington DC next month, is to also meet with officials from the World Bank in search of support on the sidelines of the annual spring meeting of the Bretton Woods Institutions. Sri Lanka’s official request for IMF assistance is reportedly being handled by Sri Lanka’s Alternative Executive Director in the IMF, Dr. Chandranath Amarasekara. However, the IMF on Friday (25) noted: “It is urgent for Sri Lanka to implement a credible and coherent strategy to restore macroeconomic stability and debt sustainability while protecting vulnerable groups and reducing poverty through targeted social safety nets.” The Fund also released its 95-page Article IV consultation report on Sri Lanka. The Fund also revealed the views expressed by the ‘authorities’ with regard to key macroeconomic issues. According to the IMF, local ‘authorities’ have viewed the current monetary policy stance as appropriate and the ‘authorities’ had disagreed with the IMF staff recommendations on exchange rate policy. However, since the conclusion of the IMF staff consultations, the Government has taken several steps to address issues during the past few weeks. As for financial support from foreign countries, Sri Lanka has already received $ 1.9 billion from neighbouring India and has now turned to China to seek a $ 2.5 billion financial aid package. Trade Minister Dr. Bandula Gunawardena, meanwhile, has sought a credit line from Australia to import milk powder and other essential food commodities. However, the IMF has noted that even if these inflows could provide some breathing space in the short term, it remains unclear how the large foreign exchange debt service obligations this year and beyond can be met. It is in this backdrop that Indian External Affairs Minister S. Jaishankar is to visit Sri Lanka tomorrow (28) until Wednesday (30). Apart from meeting with senior Government members, Jaishankar will participate in the BIMSTEC Ministerial Meeting on Tuesday (29). While the Government is relying on a begging bowl to wade through the economic storm, a group of 10 (G-10) governing alliance parties that are now acting independently has threatened to reduce the Government’s current two-thirds majority in the Legislature to less than a simple majority of 113 seats in the House. Nevertheless, the heightening crisis and the increasing public strife were starkly witnessed when three elderly individuals standing in line for hours to purchase kerosene and petrol collapsed and died in the Kandy, Kadawatha, and Meerigama areas respectively. The matter was further compounded when the growing frustrations also resulted in murder when a three-wheeler driver stabbed to death a 29-year-old motorbike rider at a fuel station in the Horagolla area last week. The Government on Tuesday (22) called on the military to provide security to fuel stations to ensure that order is followed in distribution after the Police claimed inability to provide 24-hour security to the stations. However, Finance Minister Rajapaksa informed the Cabinet last week that the ongoing fuel, electricity, and LP gas shortages would be addressed in a week’s time when monies from the Indian credit lines are made available to the country. Fuel under the $ 500 million Indian credit line started to arrive in the country from last week and is expected to ease the pressure on fuel shipments. Nevertheless, energy sector trade unions claim that the Ceylon Petroleum Corporation (CPC) would have to ensure a non-stop supply of fuel for at least 48 hours to adequately address the island-wide shortages. Also, last Friday night’s surprise by Lanka Indian Oil Company (LIOC) in the form of another hike in petrol prices will further add to the CPC’s burdens on meeting the growing demand. The Indian credit lines are expected to help Sri Lanka for around four to five weeks. The $ 1 billion Indian credit line is expected to resolve shortages in medicines and also clear some of the containers with food commodities that had been stuck at the Colombo Port for months. However, the Trade Ministry’s recent announcement that traders who had imported goods from India could register with the Ministry and get their goods released from the port has faced several obstacles. The key obstacle is the delay in securing the monies through the Indian credit line, which is still undergoing the final stages of formalities. The other is the objections posed by shippers to settle payments for Indian Rupees. While importers maintain that they can reach an agreement with the shippers for payment in Indian Rupees for the next shipments, the current shipments that are stuck at the Colombo Port require payments to be made in US Dollars. The governing party also held two meetings of its parliamentary group to discuss the crises faced by the country. The parliamentary group held its usual meeting in Parliament under the Prime Minister’s patronage on Tuesday (22) morning. Another meeting was convened on Tuesday evening at Temple Trees under the President’s patronage with the SLPP parliamentary group and a dinner for the participants afterwards. Group’s concerns The parliamentary group meeting turned out to be a lengthy one, with governing MPs expressing their views and concerns while the Finance Minister Rajapaksa gave a lengthy response. The meeting commenced with President Rajapaksa making a speech outlining the current crisis in the country and the efforts taken by the Government to address the situation. Afterwards, State Ministers Jagath Kumara and Tharaka Balasuriya, along with MP Chamara Sampath Dassanayake, expressed views on the difficulties faced by the public that have directly impacted governing party politics. Jagath Kumara noted that it had now become impossible for governing party members to go among the people. “If people see any governing party politicians near a LP gas or fuel queue, there’s no doubt that we will be assaulted. If this trend continues and the people’s frustrations continue to grow in this manner, I fear that people will end up assaulting us like the incident that took place in Pakistan a few months back,” he explained. President Rajapaksa, after listening intently, noted that he was aware of the difficulties faced by the people and that reports of intelligence units had provided a detailed picture of the situation. “We are trying to find solutions. We are also engaging with foreign countries to see how best we can source US Dollars to the country,” the President noted. Finance Minister Rajapaksa explained that the Government’s decision to reach out to the IMF was to resolve the ongoing crisis. “We are in close contact with the IMF and we have already started implementing some of their proposals. There will be certain conditions and we will have to consider them. However, we will not stop the ongoing development work either,” Basil explained, adding that people would not face shortages during the April New Year. Former State Minister Nimal Lanza, who submitted his resignation letter earlier that day, also attended the group meeting in the evening. Prior to his official resignation, Lanza had publicly announced his decision to refrain from attending work at his ministry, claiming he was unable to execute his duties due to the actions of several officials. It is also learnt that Lanza had communicated to Basil and the President that he could not work with his Cabinet Minister, Highways Minister Johnston Fernando, as he (Lanza) could not agree with some of Fernando’s actions. Finance Minister Rajapaksa was seen speaking privately to Lanza after the meeting concluded and the President had also spoken to him (Lanza) privately afterwards. It is learnt that apart from requesting Lanza to remain calm, he had been informed that he would be offered another ministerial portfolio. Lanza, it is learnt, had been offered the Cabinet ministerial portfolio currently held by Minister Vasudeva Nanayakkara. However, Lanza had turned down the offer to appoint him to the Cabinet and said he would keep the peace within the Government for the time being. Meanwhile, attempts by several Government seniors to create divisions within the dissident G-10 group backfired as well. A parliamentarian representing Weerawansa’s National Freedom Front (NFF), Asanka Navaratne, was offered a State ministerial portfolio – the portfolio that is now vacant following Lanza’s resignation. Several social media outlets supportive of the Government were seen publishing news stories of an imminent split in the NFF with Navaratne being appointed as a State minister. However, it is learnt that Navaratne has turned down the offer, saying he continues to stand as a member of the G-10. Nevertheless, it is learnt that a very senior member of the Government has been tasked by the governing party to somehow woo at least one member of the dissident G-10 to create a rift within the group. While the Government continued to discuss the issues faced by the country, the rupee depreciated on Monday (21) by between 1.8-3.2%, thereby taking the total aggregate depreciation of the Sri Lankan Rupee over the past three weeks to over 40%.  Gearing to face media Meanwhile, the SLPP parliamentary group meeting with President Rajapaksa had also discussed the need for the Government to be more proactive with the media. Several members had noted the adverse publicity received by the Government through almost all media outlets and that it had directly impacted on public perception. President Rajapaksa had also agreed and cited a story in a Sinhala daily newspaper published that morning as an example. The President had observed that all ministers and State ministers should engage with the media by granting interviews and being more accessible to get the Government’s message to the public. Minister Mahindananda Aluthgamage had responded saying that the governing party was in the process of finalising a programme to engage with the media. Minister Mahinda Amaraweera had proposed that when assigning Government members to attend political talk shows on electronic media channels, the Government members needed to be divided into several groups depending on the topic and the nature of the media programme. He further explained that the forceful speakers should be sent to battle out difficult issues while the second group could then engage with the media at different levels. FRs on economic crisis Meanwhile, the Bar Association of Sri Lanka (BASL) filed two Fundamental Rights applications in the Supreme Court last Friday (25) on the present economic crisis in the public interest. The BASL noted that the applications were filed by its President, Saliya Pieris PC; Deputy President Anura Meddegoda PC; Secretary Rajeev Amarasuriya; Treasurer Rajindh Perera; and Assistant Secretary Pasindu Silva. The Petitioners have claimed that their Fundamental Rights under Articles 11, 12(1), 13(4), 14(1)(g), 14(1)(h) and 14A of the Constitution are being violated or are in imminent danger of infringement by the actions and/or inaction of the State including the Respondents. The Petitions have made the Attorney General, the Cabinet of Ministers, the Governor of the Central Bank, the Secretary to the Treasury, Secretaries to several Ministries, the Ceylon Electricity Board, the Ceylon Petroleum Corporation and the State Pharmaceutical Corporation as Respondents. The Petitioners have made the application as People of Sri Lanka in whom sovereignty is reposed and as People of Sri Lanka in whom is also imposed several Fundamental Duties, under Article 28 of the Constitution for and on behalf of the Bar Association of Sri Lanka, which is the apex professional body in Sri Lanka for attorneys-at-law and is committed to upholding the rule of law, Fundamental Rights, the independence of the Judiciary, and justice in Sri Lanka, in the public interest. G-10 gets tough The group of 10 (G-10) governing alliance party leaders together with the SLFP, making it now a group of 11 (G-11), met last Tuesday (22) evening. NFF Leader Wimal Weerawansa noted that the crisis faced by the country could not be resolved by borrowing money from India as it would eventually result in further compounding the country’s woes. He told the media after the meeting that the group of parties was planning on taking several powerful decisions in future as the country has fallen into a sad state. He claimed that the country had been pushed towards anarchy and the situation needed to be changed. According to him, the G-11 had focused its discussion on getting the country out of the mess it was in at present and not on holding a Presidential Election. Weerawansa had added that the group would present to the public a list of charges against the incumbent Government. G-10 leaders also visited Kandy to meet with the Mahanayakes of the Asgiri and Malwatte Chapters last Thursday (24). Weerawansa meanwhile, had explained the G-11’s plan to reduce the Government’s majority in Parliament. He had observed that the Government had obtained 157 votes for the Budget 2022 in Parliament. “Out of this 157, three members – Nimal Lanza, Susil Premajayantha, and Wjeyadasa Rajapakshe – are already out. Our group of 11 parties has 30 members (G-10 has 16 MPs and Sri Lanka Freedom Party [SLFP] has 14 MPs). There are 12 more governing party members who are disgruntled and prepared to leave. All these add up to 45 members. The Government’s numbers will then be reduced from 157 seats in the House to 112 seats,” Weerawansa explained. In such a scenario, the Government will not hold a simple majority in the House unless it secures several defections from the Opposition. SLFP undecided? The SLFP meanwhile continues to discuss the party’s stance with regard to when it should take a stand and publicly side with the G-10 governing alliance parties. To the SLFP, it is a political decision on the timing as well as placement in such an alliance. Being the larger party among the group of 11 governing alliance parties, the SLFP believes the G-10 should join an alliance led by it rather than the SLFP deciding to sit in an alliance already formed with the G-10 members. SLFP Leader Maithripala Sirisena had informed his party seniors that the United People’s Freedom Alliance (UPFA) led by the party should be the party’s future political alliance. SLFP General Secretary Dayasiri Jayasekera, who represents the SLFP in meetings with the G-10 leaders, has been tasked with discussing the need for all disgruntled members of the governing alliance including the G-10 to join under the UPFA. Meanwhile, senior governing party members of the governing party, who were former members of the SLFP, have once again initiated discussions with their former SLFP colleagues to discuss a future political path. Meanwhile, former SLFP Leader, former President Chandrika Bandaranaike Kumaratunga, together with MP Kumara Welgama, are also pushing for a broader political alliance with the SLFPers. Boycotters high The much-anticipated All-Party Conference (APC) was convened by the President last Wednesday (23) following many pleas by members of the governing alliance as well as the Opposition for such a forum to discuss the crisis in the country since last year. In fact, calls for the holding of an APC were made for over a year when first signs of an impending crisis were witnessed last year. However, with the thinking of better late than never, the President decided to convene an APC following a request made by the main constituent party of the ruling Sri Lanka Podujana Peramuna (SLPP)-led Government alliance, the Sri Lanka Freedom Party (SLFP). While a majority of the Opposition parties and governing alliance partners boycotted the meeting, the United National Party (UNP) attended the meeting with the party’s sole parliamentarian, Party Leader Ranil Wickremesinghe, in attendance. The Tamil National Alliance (TNA) on Tuesday (22) announced that it would attend the APC. However, it is learnt that the TNA was split on its decision to attend Wednesday’s meeting. TNA coalition partners, the Illankai Tamil Arasu Kadchi (ITAK) and People’s Liberation Organisation of Tamil Eelam (PLOTE), decided to participate in the all-party meeting while the Tamil Eelam Liberation Organisation (TELO) and Eelam People’s Revolutionary Liberation Front (EPRLF), which are also part of the TNA, decided to boycott. MPs Gajendrakumar Ponnambalam and C.V. Wigneswaran also boycotted the APC. The Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) was the first party to announce its decision to boycott the APC. The JVP last week announced its decision to boycott the meeting, claiming it was only a ruse to resolve the conflict between the governing SLPP and SLFP. JVP Leader and NPP MP Anura Kumara Dissanayake claimed that the APC was not aimed at discussing the current economic crisis in the country. “We emphasised the need for such a conference one-and-a-half years ago. Now that the crisis has escalated, there is no point in inviting us to this conference,” Dissanayake told a news conference last Sunday (20). “The IMF has submitted a detailed report on the country’s economy. Therefore, present it to Parliament. Also, the Central Bank of Sri Lanka (CBSL) should provide us with details of the country’s foreign exchange reserves as well as the loans to be repaid. Without them, there would be no point in just chatting,” Dissanayake said on 17 March. The key figures of the G-10 governing alliance parties that now operate independently of the Government – ousted Ministers Wimal Weerawansa and Udaya Gammanpila as well as Minister Vasudeva Nanayakkara – boycotted the APC. The G-10 was represented by Ven. Athuraliye Rathana Thera and Prof. Tissa Vitarana. However, by last Monday (21), several other political parties also joined the bandwagon of those boycotting the All-Party Conference. The main Opposition Samagi Jana Balawegaya (SJB) officially announced its decision not to attend the President’s all-party meeting. The decision was reached by the SJB parliamentary group that met under the patronage of Opposition and SJB Leader Sajith Premadasa. Premadasa’s private secretary Ravi Jayawardena conveyed the decision through a letter to President’s Secretary Gamini Senarath. The Tamil Progressive Alliance (TPA) led by MP Mano Ganesan also stated that the alliance representing the up-country Tamil community would not be attending Wednesday’s meeting. Muslim political party leaders in the Opposition – Rauff Hakeem and Rishad Bathiudeen – decided last minute on Tuesday (22) night not to attend Wednesday’s meeting. However, MP Nazeer Ahamad representing Hakeem’s Sri Lanka Muslim Congress (SLMC) and MPs M. Musharraf and Ali Sabry Raheem from Bathiudeen’s All Ceylon Makkal Congress (ACMC) attended the APC. Meanwhile, the governing alliance partner, the Ceylon Workers’ Congress (CWC), also announced on Monday its decision not to attend the President’s meeting. All-party meet The APC finally got underway on Wednesday (23) but concluded without reaching a consensus on the next steps to be adopted. A majority of the participants at the meeting were members of the governing party as well as of the governing alliance. All parliamentarians of the SLFP attended the all-party meeting. A large number of members from the governing SLPP were also present at the meeting. However, in the absence of key Opposition parties like the SJB and JVP, UNP’s Wickremesinghe took up the role of the main Opposition representative at the APC. Wickremesinghe started by taking on CBSL Governor Ajith Nivard Cabraal over a statement read out by him on the country’s economy at present where he lay blame on the previous Government for current ills. “We came here to hold a sincere discussion without any political interests to find solutions to the ongoing crises. But, the Governor started by blaming the previous Government. If we are going to start the blame, then it will never end. It will end up with King Vijaya arriving in the country,” Wickremesinghe claimed, for which the President immediately apologised on Cabraal’s behalf. Wickremesinghe afterwards had an exchange of words with Finance Minister Rajapaksa over the Government’s failure to make available the IMF report to the members of Parliament. Basil claimed that the Government had still not received the final IMF report and they had only received a draft. “Do you want the draft? We cannot give the draft since we have made observations on it. Only afterwards will we get the final report,” Basil said. “Whatever you are making available, table them in Parliament – don’t give me,” Wickremesinghe responded. SLFP Leader Sirisena and Wickremesinghe requested that the Government shelve the Budget for 2022 and proposed that a supplementary estimate containing only the essential expenditure be submitted by the Government. Finance Minister Rajapaksa stated that he was prepared to submit such a supplementary estimate, subject to the consensus of the Cabinet of Ministers. Wickremesinghe said that a supplementary estimate, which includes only the essential expenditure, should be tabled in Parliament, considering the current economic crisis in the country. “If we need to overcome this crisis, only the essential expenditure should be identified, and all other expenditure should be omitted. In particular, the present development-based Budget should be replaced by a supplementary estimate, through which it is possible to provide relief to the people affected by the current crisis,” he claimed. Meanwhile, Sirisena also said that a supplementary estimate should be submitted for the remainder of this year. He added that it was very important to cut down on all unnecessary expenses through it. Emphasising that the said supplementary estimate should be prepared as soon as possible, he stressed that it should be passed in Parliament before May. In response, Basil said that he, as the Finance Minister, would agree to submit such a new supplementary estimate. “If the Cabinet also agrees to this, there won’t be an issue in submitting one. I, as the Finance Minister, will also agree to it and this will be considered in the future,” he added. Basil further noted that the ‘Hari Maga’ programme presented by the G-11 governing alliance partners contained most of the proposals of the IMF and that it was being followed. Meanwhile, TNA’s Sumanthiran submitted a set of proposals that were prepared by a group of parliamentary party leaders, mainly from the Opposition, following several rounds of discussions on the economic crisis. The proposal was signed by seniors of the SJB as well as the NPP, which boycotted the confab. SLFP proposals Sirisena said that steps should be taken to convene diplomats from friendly countries and to hold a conference aimed at attracting Foreign Direct Investment (FDI) to Sri Lanka. He also said that a plan should be drawn up to restructure foreign debt and that the Government should take steps to bring in certain legal provisions if necessary.  He noted: “The country’s foreign debt needs to be restructured in the face of the current economic crisis with the intervention of a trusted country or institution. Necessary legal provisions should be made for this by introducing new laws and removing existing laws as required.” Sirisena further said that the current situation in the country should be declared a crisis, and that it was very important to provide accurate information to the people regarding the economic collapse. He also called for limiting money printing. “Make forecasts on the future economic situation with the assistance of the CBSL and other experts. It is also important to note that no such forecast has been made so far regarding the situation which we are seeing today.” Sirisena presented a list of 21 proposals prepared by the SLFP on the steps to be taken to overcome the current crisis. Among them are cutting off unnecessary Government spending, reviewing the Government’s fertiliser policy, formulating a joint programme for the welfare of the people, reintroducing a pricing formula to regulate fuel prices, increasing renewable energy production, and formulating a programme to provide relief to the people.  Sirisena also proposed to import goods only on the basis of priority, to strengthen the manufacturing economy, to constantly monitor commodity prices and their quality, to formulate a programme for the sensitive control of possible social unrest, and to establish a fully-fledged commission to combat corruption and irregularities. More money from China? Meanwhile, Sri Lanka’s default financial supporter, China, seems to have taken a firm stand by saying ‘no’ to the Sri Lankan Government. Despite a request by the Sri Lankan Government to defer a loan repayment of over $ 100 million to China, the Chinese Government has stood firm, saying it has provided ample financial assistance to the country thus far and was not prepared to restructure the Chinese loan repayments. According to the Chinese, granting a deferment to one country would result in other countries it lends to also seeking such relief. It is learnt that the Sri Lankan Government had therefore taken steps to make a $ 130 million debt repayment due to China. Following this latest development, Chinese Ambassador to Sri Lanka Qi Zhenhong decided to meet with media personnel including heads of media institutions last Monday (21) to discuss Sri Lanka-China relations and the Free Trade Agreement (FTA) talks that have been restarted. The luncheon meeting was organised at The Kingsbury Hotel in Colombo. Zhenhong said the Chinese Government was considering a request by Sri Lanka for a $ 1 billion loan and a $ 1.5 billion buyers’ credit line, the latter for goods and services which are imported from China. Zhenhong also urged Sri Lanka not to suddenly cancel projects which are awarded through a transparent bidding process, referring to the cancellation of an energy project awarded to China in the Northern Province last year, as it erodes confidence in Sri Lanka among Chinese investors. He stated this in response to a question about what Sri Lanka could do to improve investor confidence, especially from Chinese investors. When questioned about the progress on restructuring Sri Lanka’s debt to China, a request made by President Gotabaya Rajapaksa during Chinese Foreign Minister Wang Yi’s visit in January, Zhenhong said: “China and Sri Lanka are keeping close negotiations on economic and financial cooperation. Our aim is to help our Sri Lankan friends to overcome the current difficulties that they are facing. We have done much to help and will continue to do so.”  Zhenhong added that China was keen on moving forward with the stalled FTA between the two countries. Addressing concerns about the inequalities between the two markets, he said that China would not exploit Sri Lanka through the FTA, adding that any concerns could be discussed at the upcoming negotiations. The China-Sri Lanka FTA negotiations had completed six rounds of talks before they stalled a few years ago. Responding to a media query regarding the concerns surrounding the proposed FTA, Zhenhong pointed out that China had entered into an FTA with Cambodia, which had a smaller economy than Sri Lanka. He added that even though Cambodia had a smaller economy and industrial base, the FTA with China had benefited it. There have been growing disagreements between the Chinese Government and Sri Lanka over several issues ranging from the controversies that surrounded an organic fertiliser shipment and Stage 3 of the Central Expressway Project. Senior members of the Government had even been informed that the Chinese would in future think twice before extending financial support to Sri Lanka in this background. The Government meanwhile is looking at mending its sour relations with China. As a step in that direction, it is looking at importing another fertiliser shipment from the Chinese company that was at the centre of controversy recently over a shipment of rejected organic fertiliser that turned into a diplomatic row. The row even saw the blacklisting of People’s Bank by China until payment was made for the shipment. State Minister Shasheendra Rajapaksa says that a shipment from China’s Quindao Seawin company will be brought down in 26 days to Sri Lanka. However, the $ 130 million repayment to China is among nearly $ 7 billion of foreign debt liability this year. Sri Lanka has managed so far to honour its debt repayment by making a payment of $ 500 million for International Sovereign Bonds (ISBs) that were due in January. However, the Government will face the next hurdle in July when it has to make a $ 1 billion payment for ISBs. JVP breathes fire The JVP-led NPP meanwhile held a massive protest rally last Wednesday (23) in Nugegoda, following a protest march from Delkanda junction. “We also got a letter asking us to attend the All-Party Conference. There is no point in having lengthy discussions with these kinds of people. We would have only told them: ‘Enough. Step down. And go.’ What discussions can be had with such leaders who drag this country down? Tens of thousands of people have converged here in Nugegoda to demand nothing else but for the Rajapaksas to leave,” Dissanayake told the gathering.  “In the past 18 months, since the General Election, there have been 21 ministerial portfolio changes, most of which were granted to Youth and Sports Minister Namal Rajapaksa. In the past 18 months, 21 changes to cabinet ministerial portfolios have taken place. I have 21 gazettes to prove this. In the past 18 months, more than 30 institutional heads, directors, and ministerial secretaries have either been fired or have resigned. This is a rule which has created anarchy,” he claimed, while also adding that the individuals who met at the APC earlier that day were actually the reason for the country’s economic downfall. Meeting the TNA Meanwhile, the long-delayed meeting between the President and the TNA finally took place last Friday (25). The meeting was postponed on several occasions earlier, with the last postponement being several weeks ago. The meeting took place at a time when President Rajapaksa has expressed his intention of developing a dialogue with minority parties as well as with members of the Tamil Diaspora to US Under Secretary of State for Political Affairs Victoria Nuland during her visit to Sri Lanka last week.  However, the discussion between the President and TNA was focused on several key areas concerning longstanding issues highlighted by the Tamil community. Following the discussion, the Government had agreed to set up a fund for the development of the North and East Provinces with the aim of increasing investments in the war-affected areas. TNA MP Sumanthiran said the President had assured the TNA that a process would be initiated to release long-term detainees held without trial under the Prevention of Terrorism Act (PTA) for several years. Justice Minister Ali Sabry PC was directed to inquire into the matter with the TNA. He also said the President had agreed to immediately halt the implementation of special laws to selectively encroach on land in the north and east once owned by Tamil civilians. The TNA noted that lands were still being grabbed in these areas. Army Commander Lt. Gen. Shavendra Silva had telephoned Sumanthiran soon after the meeting to inquire about the lands that the TNA had claimed were being grabbed by the military in the north and east. The TNA Leader had responded saying the party would prepare a list and submit it to the Army Chief. As for a solution to the Tamil question through a new Constitution, the President had said that the draft prepared by the experts committee headed by President’s Counsel Romesh de Silva would be ready in two months and that it could be looked at before taking the next steps on the matter. Proposing solutions Meanwhile, the Advisory Committee appointed to assist the National Economic Council had, last week, presented five proposals to be implemented expeditiously. The proposals submitted by the committee are: The immediate appointment of a Technical Committee consisting of officials representing the Central Bank and the Treasury to propose international financial assistance; the immediate appointment of a financial advisor and steps to be taken to appoint a legal advisor; the Technical Committee should expeditiously come up with a restructuring programme to propose international financial assistance; identifying a team of specialists to assist the Minister of Finance; and focus on building trust by avoiding supply interruptions. The Advisory Committee had further recommended that short- and long-term measures be taken to strengthen refinancing to stabilise the economy and steer it in the right direction. It had said that Sri Lanka has had to face the repercussions of the impact on the economies of many countries in the world, and that the exchange crisis was at the forefront of this. The 16-member advisory committee was appointed by the President on 15 March to assist the National Economic Council in finding solutions to the economic problems that have arisen in the country. Meanwhile, Malwathu and Asgiri Mahanayake Theras presented a letter to President Gotabaya Rajapaksa highlighting the importance of convening an All-Party Conference of local and foreign scholars to formulate a plan for sustainable development and 13 other issues. The letter was signed by Malwathu Mahanayake Most Ven. Thibbatuwawe Sri Sumangala Thera and Asgiri Mahanayake Most Ven. Warakagoda Gnanaratana Thera. In the letter, the Mahanayake Theras pointed out the need to formulate a national policy to provide relief to the people affected by the economic crisis. Among the proposals were the implementation of development projects based on a list of priorities identified to alleviate the foreign exchange crisis, the reduction of the cost of living and the creation of a local economic model are also among the proposals, providing relief to the production of essential food items, agriculture and the farming community, and enforcing the law against fraudulent traders who artificially create shortages of essential commodities, and for foreign remittances through a transparent economic plan and the need to establish an exports-based economy. The Mahanayake Theras had also emphasised the importance of encouraging new investments, restructuring public debt, providing relief to low-income earners, and formulating a sustainable plan to prevent waste, corruption, and misuse of resources. Meanwhile, Sri Lanka has been ranked within the last 20 countries in the World Happiness Report 2022 released recently, coming in at 127th among 146 countries included in the report. Sri Lanka has in fact ranked lower than impoverished and conflict-ridden nations such as Malawi, Zimbabwe, Lebanon, Ethiopia, and Afghanistan.