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Colombo
Sock Market slides The all share index at the Colombo Stock Exchange is gradually turning into the critical point. On Tuesday it fell to a shade over 490 while yesterday it came down still further standing in the region of 460s. Last week all analysts reported the market to fall further from the 506 at close on Friday. This continued downward trend analysts say will leave a considerable number of speculators bankrupt while creating millionaires out of others. Many reasons have been given by analysts for this seven year low. Foreign interests have been seen in a panic selling spree. Sarath Rajapakse of CDIC Sassoon Cumberbatch says the panic will turn the market into a roller coaster ride down in the next few days. Mr. B. J. Vincent of the Ceybank Unit Trust says: "We expected technical support to bolster the market at 550. But this did not happen". In his estimation it could come up when the index slides to the 400 mark. "I hope the correction would not stay that late", he said. Three reasons have been given for the market's downfall. Firstly it was the Government decision to reduce the time limit given for credit purchases. "It ruined many people" says Rajapakse. Previously speculators were permitted 15 days of credit from the date of transaction. But the Government without any notice reduced it to eight days. So brokers had been left in a dilemma since it liquidated "speculative types" from the market. Secondly the issue of debentures caused liquidity in the market to fall. As a result the funding that would otherwise have gone into the market went into debentures. And, according to analysts, local players in the stock market went in for all debenture issues, rather than continue with market speculation. Thirdly International sentiment in the Colombo market fell as a result of the Asian crisis. The funds expected to have come to Colombo while leaving other Asian markets did not materialise. Analysts say much of this was caused by the fear of a devaluation of the rupee. In fact the Central Bank which had estimated a GDP growth of 6 per cent lately downgraded the projections to 5 per cent and even lower. Analysts have pointed out there would be no growth in Sri Lanka's exports in the medium term since all Asian countries have drastically devalued their currencies. Exporters they say have no chance of pushing exports since western buyers have found the rupee to be overvalued and consequently Sri Lanka's products are costlier to them than from other Asian countries. Some analysts think foreign sentiment is that Sri Lanka will be forced to devalue within the next six months. "So foreigners will not come into the stock market but will opt to pull out" say analysts. The recent fall of the rouble according to Rajapakse had affected even our tea market. "This is why even the estate sector failed to keep up its stock prices", he said. Technical support arises when stock prices come down to absurd levels so that even blue chip shares could be picked up at extremely low prices. "This is the time when Institutional buyers will come into the market", Rajapakse says. President
urges Nonaligned nations President Chandrika Kumaratunga yesterday urged all Non Aligned nations to become parties to the convention on the suppression of terrorist bombings so that it could come into force without delay. Addressing the 12th NAM summit in Durban South Africa Kumaratunga said that adoption of the convention would be a clear signal that no state is prepared to condone terrorism, nor provide safe haven for terrorists or terrorist groups anywhere in the world. "The question of international security is very much in the minds of the international community at this time. Much has been said about nuclear non-proliferation and nuclear disarmament. Both aspects are equally important, not only for preserving international security, but also for the very survival of mankind. Sri Lanka does not believe that the question of nuclear non-proliferation should be pursued, without attention being paid simultaneously, to the question of promoting rapid and orderly progress towards total nuclear disarmament. Let us not go down in history as the one human generation that bequeathed the most potent weapons of destruction to generation yet unborn. There is no rationale whatsoever for the prohibition of other types of weapons of mass destruction, while a few countries seek to monopolise the retention of nuclear weapons. The Non-Aligned Movement should send a clear message to the nuclear weapon States that they should, together with the rest of the international community, support a credible plan of action for the total elimination of nuclear weapons", she added. Resume talks with LTTE without delay -
UNP United National Party believes that the government should resume negotiations with the LTTE without further delays, party spokesman, Karunasena Kodituwakku said yesterday. The government should not lay down conditions except for agreeing on a time frame to conclude the negotiations, he said. Both Kodituwakku and Colombo District MP Tyronne Fernando said that all options available to resolve the North-East crisis should be probed. The party spokesman pointed that all except for a few admit, some of them privately, that the crisis should be resolved through negotiations. "We must go into negotiations without pre-conditions," Kodituwakku said adding that there was no need to call off ongoing military operations in the North-East region and elsewhere during government-LTTE talks. Kodituwakku was making the party's position clear after Rupavahini Tuesday night announced that UNP and Opposition leader Ranil Wickremasinghe has proposed resumption of talks with the LTTE without having any pre-conditions. Kodituwakku said that UNP does not believe in suspension of military operations as previous ceasefires have been used by the LTTE to strengthen its position and resume hostilities resulting in heavy losses among the government forces. "We can talk while fighting them in the North East and elsewhere," he said. Asked whether the party wants third party mediation, Kodituwakku replied in the negative. He said that the party does not support the involvement of a mediator. However, the idea of accepting a mutually acceptable faciliator is crucial in efforts to bring the LTTE back to the negotiating table, he said. The party believes that a facilitator could provide the necessary facilities for the government and the LTTE to sit down and talk. "A facilitator," Koditiwakku said, does not have to engage in the discussions. Both Bhutan and India facilitated talks between previous government and Tamil groups during J. R. Jayewardene's time. Kodituwakku said that he believes that at least a section of the government wants to resume negotiations with the LTTE. The UNP is prepared to back efforts to end the ongoing war, he said. Quoting Ranil Wickremasinghe, Kodituwakku said that the government should talk to other political parties and reach an understanding before resuming talks with the LTTE." We are not talking about the so called devolution package," he stressed adding that the government should make an effort to form a common front ahead of resuming negotiations with the LTTE. UNP accepts there is a need to talk to the LTTE as the party accepts that it [LTTE] is a key player. Asked to name a country which can facilitate government-LTTE talks, Kodituwakku said that his private view is that a country like Japan can help. He said that LTTE was not likely to accept certain countries as facilitators. "May be Japan, may be Britain," he said pointing out that a country not affected by LTTE activity could be a good facilitator. The MP said that both sides must admit that talks will never be resumed if they insist on unresonable demands.If the government demands laying down of arms by LTTE, they [LTTE] will demand the withdrawal of forces to April 1995 positions. Since April 1995 government forces have brought the peninsula and large parts of the Wanni region under their control thus considerably weakening terrorists, military officials said. Both Kodituwakku and Tyronne Fernando said that political parties will be able to discuss crucial issues on September 14 when the party holds consultations on free and fair elections and de-politisation of key institutions. Fernando said that there was no truth in the party having what a section of the press has called 'All Party Conference' at Sri Lanka Foundation Institute. What we are having is consultations on free and fair elections and de-politisation of key institutions, he said. The September 14 consultation is expected to be the first of at least few similar gatherings. All registered political parties, NGOs and many other interested parties have been invited. Party seniors are expected to talk to general secretaries of political parties in this connection. UNP intends to publish full report on the consultations by end of next month or early November. Elections Commissioner, Attorney General and the Defence Secretary were among the people to be invited for the consultations, he said. Political analysts said that planned consultations were aimed at forcing the government to have free and fair elections. "The idea is to develop a broad coalition of opinion supportive of free and fair elections," sources said. Minister G. L. Peiris last Friday described the September 14 consultations as an insincere and evasive exercise. It was not clear whether the SLFP or PA partners will take part in the consultations. UNP was expected to deliver invitations to all registered political parties this week. Political sources said that despite ongoing efforts to bring the LTTE back to the negotiating table and educate the politicians of the need to secure a political solution, a section of the government feels that the military campaign against the LTTE must continue. Fresh talks will only upset the situation, one official said pointing out that resumption of negotiations will have a negative impact on the war effort. A government which postponed scheduled provincial council elections claiming it would have an adverse effect on the campaign against the LTTE was not likely to enter into talks at the moment sources said. The government has poured thousands of troops to the ongoing Wanni offensive, Jayasikuru and senior commanders have privately admitted that an overland route can be somehow restored by end of this year. Earlier plans to restore the route by February this year failed due to fierce enemy attacks and heavy losses both in men and material. GL asks India give 'moral support' to solve
ethnic problem NEW DELHI, September 01 - A visiting Sri Lankan minister said that India can provide "moral support" to help solve the festering ethnic crisis in the Indian Ocean island nation. Prof. G. L. Peiris, Minister of Justice, Constitutional and Ethnic Affairs, said in Chennai-at a press briefing that by using "political diplomacy," India can play a vital role in uniting all the Tamil parties in is country to iron out the differences among them, and assist in the process of finding a political solution. This is perhaps the first time that a senior minister in President Chandrika Kumara-tunga's cabinet has publicly stated that India can play some role in settling the ethnic problem in that country. The minister also observed that it is clear that Sri Lanka will welcome only moral support from India, and not of any other kind. He described as "an unhappy experience" the activities of the Indian Peace Keeping Force (IPKF) in the island during 1987-90. It may be recalled that India had sent the IPKF to the island's troubled northeast in July 1987 to disarm the Tamil rebels as part of the Indo-Sri Lanka Agreement, signed in Colombo by then Indian Prime Minister Rajiv Gandhi and Sri Lankan President Junius Richard Jayawardene. The IPKF could not achieve its objective because of New Delhi's orders that the Indian troops should not use strong arm tactics against the Tamil rebels. Eventually, the IPKF's presence in the island became a big political issue and a matter of much friction between Colombo and New Delhi. Watadage guardstones robbery no breakthrough
yet Police probing last week's plundering of the five priceless guardstones from the 2000 year-old-Wata-dage-in Medirigiriya has so far failed to make a breakthrough and no arrests have so far been made in this connection, police said. Police had arrested the night watcher who was on duty on the day the robbery took place. He was produced before the Polonnaruwa Magistrate and remanded till September 10. According to the reports earlier police had arrested several groups involved in digging archaeological treasures in areas of Meegollawa, Bisobandara, and Wadigawawa in Medirigiriya division. These arrests were made on information given by villagers. However, in the guardstones robbery no headway has been made so far. Rs. 500 m
defamation suit against minister Minister of Plan Implementation and Parliamentary Affairs Jeyaraj Fernandopulle has sought the dismissal of the 500 million rupee defamation suit filed against him by Parliamentarian Ravi Karunanayaka explaining that the contents of his interview that had been telecast are fair comments on matters of public interest. This was stated in the answer filed by the defendant Minister through his counsel Wijesinghe Associates before Colombo District Judge Sarath Ambepitiya yesterday. The plaint of the Parliamentarian Ravi Karunanayaka seeking damages in a sum of 500 million rupees for making statements defamatory of him in an interview telecast by Sri Lanka Rupavahini Corporation on May 20, 1998, was filed by attorney-at-law G. G. Arulpragasam. The answers of the defendant Minister were settled by President's Counsel S. A. Parathalingam with Wijedasa Rajapakse, Gaston Jayakody, Fiaiszer Musthapha instructed by Bandula Wijesinghe and Mrs. Chathurika Wijesinghe. Defendant Minister stated that the plaintiff in order to advance the commercial interests of the plaintiff and the companies in which he had interest sought to falsely represent or convey to the public that the sale of shares and the handing over of the management of Air Lanka to Emirates Airline by the government was not in the best interest of the public and the nation, and that the government did not act in the best interest of the public and nation in this regard. The defendant minister admitted that he was interviewed by Sri Lanka Rupavahini Corporation and that the interview was telecast. He admitted that the telecast contains references to the plaintiff Parliamentarian but denied that the said statement to telecast was defamatory of the plaintiff. He stated that, in any event, the interview given by the defendant in fair comment made on a matter of public interest in as much as the plaintiff was misleading the general public into believing that the sale of 40 per cent of shares of Air Lanka Ltd. to Emirates Air Lines is not in the best interest of the public. The defendant minister further stated that the plaintiff at all times made public statements opposing the sale of shares of Air Lanka Ltd. for the extraneous purpose of promoting the commercial interest of the plaintiff or the companies in which he had an interest. The defendant further added that as a Member of Parliament and a Cabinet Minister, he was duty bound to inform the public of the plaintiff's mala fide's in opposing the sale of the shares to Emirates Airlines. Thus he was justified in making the said statement which was telecast over the Sri Lanka Rupavahini Corporation on May 20, 1998 in the discharge of the said duty, the answer of the defendant concluded. Police avert another telecom blast An attempt to blast another telecom tower at Hikkaduwa was averted by the police around 1.30 a.m. yesterday. Sequel to a telephone message received at about 1.15 a.m. by Hikkaduwa police, Sub Inspector S. K. Ratnaweera had immediately proceeded to the place where the Telecom distribution centre in Hikkaduwa was situated. When he arrived at the centre he had seen two persons escaping on a motor cycle, police said. He had promptly alerted all police stations in the area by radio and on searching the telecom centre found a bomb fixed to the telecom tower. SI Ratnaweera had then removed the two batteries fixed to the bomb. DIG (Southern Division) Seneviratne Banda, SSP A. Ratnaweera were informed of the incident. The bomb disposal unit of Boossa army camp visited the scene and defused the bomb which weighed about one kilogramme, police said. A search operation has been mounted in the area to track down the suspects. UNP files writ applications challenging
postponement of PC polls The UNP yesterday filed two Writ applications in the Court of Appeal, challenging the postponement of the Provincial Council polls. The first two petitions were in respect of the Western province and the Uva Province. The two petitioners in respect of the Western Province are Mr. Shaul Hameed and G. Jeyakumar. The two petitioners in respect of the Uva Province is Percy Samaraweera and K. Velayagam. The petitioners in their respective petitions said that the postponement of the poll is a violation of the constitutional right and a deprivement of the right to franchise. They requested the court to issue a Writ of Certiorari to quash the decision to postpone the elections and further to issue a Writ of Mandamus to direct the Commissioner of Elections to conduct the poll. The respondents are the Commissioner of Elections, the respective returning officers, and the Attorney General. The applications will be supported by Shibly Aziz PC P. Wimalachandra A. P. Niles and Arjuna Kurukulasuriya. The petitioners have requested the Court of Appeal to refer the petitions to the Supreme Court for an interpretation and to effect the issue of the necessary writ jurisdiction. The writ applications in respect of the other provinces are to be filed within the next few days, 'The Island' learns. The petitioners are prospective candidates. Ashraff visits Fowzie in hospital Minister of Ports and Rehabilitation M. H. M. Ashraff yesterday visited Transport and Highways Minister A. H. M. Fowzie, who is under treatment at the Nawaloka Hospital. The visit had lasted about half an hour. It was a very hearty meeting, and the two Ministers had a friendly discussion, sources said. The meeting took place soon after Minister Ashraff’s return from overseas. Ministers Batty Weerakoon and Alavi Moulana had also been present on the occasion. This comes two days after the chance meeting between President Chandrika Kumaratunga and her estranged brother UNP parliamentarian Anura Bandaranaike, after a lapse of four years. Both meetings had been cordial, according to sources. Dry rations for all Jaffna, Mullaithivu,
Mannar refugees The government had decided to restore dry rations to the displaced refugees in Jaffna, Mannar and Vavuniya districts with effect from September 1, official sources said. Commissioner General of Essential Services M. I. M. Rafeek said that the number of refugees entitled for relief is 334,305 (81,224 Families) in Jaffna District. The earlier figure was 259,390 (57,866 families). Mr. Rafeek said the Mannar and Vavuniya district figures were not immediately available. When asked about more than 40,000 registered and local letters piled up in Jaffna District for the past two weeks as ICRC chartered vessel 'Jaya Gulf' was undergoing repairs, said that 'MV Lanka Muditha' had undertaken to ply two trips to Jaffna from this week taking 1100 passengers on each trip from Trincomalle to KKS in North. It could also take 300 bags of mail lying at Trinco port and bring back the letters lying in Jaffna. All Tamil political parties including the TULF agitated for restoration of dry rations to the dispensed refugees. The government has conveyed to the Secretary General of TULF MP, R. Sampanthan the decision to restore dry rations. Mr. Sampanthan was also told that the question of restoring dry rations to the displaced refugees of Mullaithivu and Killinochchi was under review. But the decision was unlikely until President Chandrika Kumaratunga returned from South Africa, the sources said. In this connection representations were made to the President by the TULF leader that food distribution had not taken place in Mullaithivu and Killinochchi District since July this year and that there was a complete breakdown in the civil administration of the two districts. New IGP visits Sri Dalada
Maligawa Steps will be taken as requested by the prelates of Malwatte and Asgiriya to ensure maximum security at the Sri Dalada Maligawa and also to minimise inconvenience caused to the public due to the security arrangements for the area, the new Inspector General of Police Lucky Kodituwakku assured during customary courtesy calls on the two Maha Nayakes yesterday. The IGP accompanied by Mrs. Lakshmi Kodituwakku paid homage to the Sacred Tooth Relic at the Sri Dalada Maligawa before calling on to visit Ven. Rambukwelle Sri Vipassi and Palipana Sri Chandrananda Maha Nayaka Theras of Malwatte and Asgiriiya Chapters, respectively. In the course of the conversation IGP Kodituwakku agreed with Mahanayake Theras that minimising inconvenience to the public due to security arrangements in force at the Sri Dalada Maligawa was a necessity while at the same time providing absolute protection to this sacred place of worship. The IGP said he would study the situation indepth with the DIG (Central Range) Sirisena Herath and the Senior SP Nimal Mediwaka who are experienced officers. Public and media guidance is also welcome in this regard, the IGP noted. IGP Kodituwakku disclosing his intention to put an end to the wanton destruction of Buddhist Sacred places by treasure hunters, told the Mahanayake Theras that he will take a special interest in this regard and instruct all his men attached to the network of police stations to be vigilant and leave no stone unturned to bring the culprits to book and ensure that maximum punishment is meted out to them. This is an area even President Chandrika Kumaratunga has shown a very special interest, the IGP said. Among the new measures anticipated with regard to the police force are expansion of welfare facilities for the lower-ranks because he believed that the men at the bottom needed a better deal. The prelate of Malwatte Ven. Rambukwelle Vipassi welcoming the IGP said that the occasion was of unique importance for it was a meeting of the twenty fifth Mahanayake of Malwatte and the twenty-fifth IGP of Sri Lanka. Ven. Vipassi told the IGP that he himself along with his members of the police force would not yield to political pressure in the dispensation of law in the country. Ven. Palipane Sri Chandananda Mahanayake Thero of Asgiriya told the IGP that police personnel along with the members of the armed forces did a yeoman service in the North and East to restore peace and integrity of the land. DIG Central Sirisena Herath and Senior SP Kandy Nimal Mediwaka with the rest of the top brass of the Kandy police area were present on the occasion. Earlier IGP Lucky Kodituwakku received a guard of honour by the Kandy Police. Diyawadana Nilame Neranjan Wijeyaratne welcomed the IGP at the Sri Dalada Maligawa. Govt. will not hesitate to take any bold
decision for greater good of people — CV Though Sri Lanka is considered a agricultural country the percentage in Gross Domestic Production for industrial sector exceeds agricultural sector, Minister of Industrial Development, C. V. Gooneratne said. Speaking at a meeting on a visit to Puttalam Cement Factory Complex the Minister noted that the contribution from agriculture and industry to GDP in 1977 was 18% and 22% respectively. The increase in industrial growth was 23%. This was due to good macro economic management, the minister claimed. Under the guidance of the economic policy of this government there is an increase in productivity. A large sum of money should be invested for the progress of the Puttalam Cement Industry. The company has already invested Rs. 2.5 billion on its modernisation process, he said. He expressed his happiness over the cordial relationship between the management and the employees. This government is planning to introduce productivity as a subject in the school curriculum. The government will not hesitate to take any bold decision for the greater good of the people, Minister Gooneratne said. Commenting on the stiff competition that exists in the cement market the minister said that there should be competition to a reasonable level but in an equal playing field is a ‘must’. Imported cement products should not enjoy undue benefits that will be at a disadvantage to the supply of locally produced cement. There should be better coordination among the government, industrialists and the employees for an industry to be successful. When the production cost is low the demand for the product goes up and this will result in bigger profits. The profit sharing will also go up. It will lead to the progress of the employees, the company and the economy, he explained. The most valuable wealth in the country is human capital because it is highly trainable and talented, he added. Speaking at the meeting the Managing Director of the Puttalam Cement Company Manilal Fernando said the company which is managed and funded by the Holder Bank Company in Switzerland has 1,189 employees. The company has a production capacity of 400000 metric tons per year. The production cost includes 15% personal cost 15% electricity cost and 16% fuel cost which are the principal cost contributory factors. If steps could be taken to cut down on these costs the production cost can be reduced, he said. The President of Sri Lanka Independent Workers’ Union, Mark Fernando expressing his views on the company said this is the only cement company that use 95% local raw material for production. Therefore steps should be taken to safeguard this local industry. He requested the Minister to suspend the tax relief granted to the importation of raw materials including clinker for cement production. If this ‘unfair type of relief’ is withdrawn the Puttalam Cement Company will be capable of meeting the market requirements. He also asked the Minister to take necessary measures to protect and develop the local industries which make a valuable contribution to the country’s economy. |
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