Friday, 18 March 2016

US IS TALKING

Sri Lanka Field Marshall points Gotabhaya Rajapaksa as war crime villain  US IS TALKING AFTER HIS TRIP TO US FINANCE BY 

By Our Political Correspondent

Mar 10, 2016 19:09 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka's former army chief Sarath Fonseka Thursday fired a broadside against the former regime and singled out its defence secretary Gotabhaya Rajapakse as the key man responsible for war crimes.

Field Marshall Fonseka said Rajapakse was about to be court martialled in 1991 for cowardice, but had fallen at the feet of then deputy defence minister Ranjan Wijeratne and secured a discharge.

"I met him in the US and he was working as a tinker for two years. He said it was very hard work. He had no vehicle. It was a friend of mine who gave him a cycle.

"But a few days later he lost the cycle. He claimed it was stolen. So my friend said: 'Why did you not use a chain or something like that to secure the bike.' His response was that he chained the cycle to a ladder and someone had stolen both the ladder and the cycle.

“Thereafter he worked as a computer operator for about 14 years. Can a man like that command an army of 200,000. If he can, then so can all of you," Fonseka said in parliament.
He said the military should face an internationally-monitored war crimes investigation in order to clear its name.

Much of the alleged atrocities, including the "white flag case" was when Fonseka was away in China in the final week of the battle in May 2009, he said.

He accused Rajapakse of giving illegal orders to junior officers. “What Gotabhaya did was like adding a bit of dung after collecting a pot of milk,”  Fonseka said using his parliamentary privileges to accuse Rajapaksa of responsibility for atrocities.

Fonseka countered former president Mahinda Rajapaksa's allegation that investigations and arrests of his family members was a political vendetta.

He recalled how he was thrown in jail two weeks after he challenged Rajapaksa at the January 2010 elections. He said on the same night his wife had been taken to the CID at midnight and questioned at length while his daughters were grilled at the airport. His son in law was in hiding for five years.

He accused Basil Rajapaksa of giving a two million dollar bribe to the Tamil Tiger rebels in 2005 to secure a Tamil boycott of elections that resulted in his brother winning the elections, even though with a very narrow margin.

Fonseka maintained that Rajapaksa would have lost the 2005 election if not for the boycott orchestrated by the LTTE.

He said  an investigation would be launched into the bribe and he vowed to expose those who paid bribes to the Tigers.

He also defended himself against allegations that he was behind the assassination of anti-establishment editor Lasantha Wickrematunga in January 2009. He suggested it was the work of the Rajapaksas, a charge they have already denied. (COLOMBO, March 10, 2016)

Police had also brought back war-time road block MORETO COME

Sri Lanka slips back to killing fields

By Our Police Correspondent

Mar 11, 2016 15:43 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka's police found charred bodies of five people burnt inside a white van, just north of the Bandaranaike International Airport, on Friday despite a government crackdown on gang warfare.

Police said they suspected the killings may be linked to underworld criminal gangs, but there was also speculation on whether a pro-government hit-squad was responsibile.

President Maithripala Sirisena had last week ordered the military to jointly carry out operations against the underworld, but he had added that all measures should be within the law. Police had also brought back war-time road blocks with the objective of stopping crime gangs.

In another development, a woman was shot dead by a gang which burst into her home in the Moneragala district.

Police said the bodies burnt inside the van were beyond recognition, but they traced the vehicle to a finance company in Colombo and believed the victims may have been underworld figures.
(COLOMBO, March 11, 2016)

Sri Lankan shares fell on Friday

Sri Lanka shares fall from two-week high on tax, economic woes

Mar 18, 2016 17:51 PM GMT+0530 | 0 Comment(s)

COLOMBO, March 18 (Reuters) - Sri Lankan shares fell on Friday after two sessions of gains as uncertainty over a capital gains tax, higher budget deficit and economic growth weighed on investors' sentiment.

The benchmark share index was down 0.17 percent, or 10.38 points, at 6,057.79, edging down from its highest close since March 3 hit on Thursday.

Sri Lanka will raise its value-added tax and reintroduce capital gains tax to break out of a debt trap, ahead of talks on a $1.5-billion loan it is seeking from the International Monetary Fund.

As vague as before "There isn't much information on capital gains tax,
 though the government said it will reintroduce it. There is an uncertainty on the capital tax percentage. Investors are waiting to know more," said Prashan Fernando, COO, Acuity Stockbrokers.

Investors preferred fixed-interest-rate-bearing assets over shares due to a rise in yields on treasury bills, which are hovering at two-year highs, and on the central bank's unexpected interest rate hike in mid February, dealers said.

Sri Lanka's economy is expected to grow 5.3 percent in 2016, data from the state statistics office showed, but analysts say tight monetary and fiscal policies may curb its growth.

The $82.2-billion economy expanded at a sluggish 2.5 percent in the December quarter, down from an upwardly revised 5.6 percent in the previous quarter.

Analysts and economists worry slower growth could reduce corporate earnings of some listed firms.

Turnover stood at 919.5 million rupees ($6.3 million), more than this year's daily average of 794.1 million rupees.

Shares in Sri Lanka Telecom Plc fell 2.69 percent.

more leave than coming in

Singapore's Keppel Land exits Sri Lanka venture

Feb 26, 2016 17:15 PM GMT+0530 | 1 Comment(s)

ECONMYNEXT - Singapore-based Keppel Land Plc said it had exited a joint venture with Sri Lanka Ceylon Theatres group for 550 million rupees.

The firm said in a Singapore stock exchange filing that it's wholly owned unit Edmonton Pte Ltd, to divest a 60 percent stake in Keppel CT Developments (Pte) Ltd, a joint venture that was to build a condominium in Colombo.

The sale was disclosed despite it not being a material impact on profits or earnings.

Before this it was kerry packer form Australia and China There have not been any major incoming invetors

Sri Lanka banker stops billion dollar bank heist

Sri Lanka banker stops billion dollar bank heist

Mar 13, 2016 07:07 AM GMT+0530 | 0 Comment(s)

(Reuters) - A spelling mistake in an online bank transfer instruction helped prevent a nearly $1 billion heist last month involving the Bangladesh central bank and the New York Federal Reserve, banking officials said.

Unknown hackers still managed to get away with about $80 million, one of the largest known bank thefts in history.

The hackers breached Bangladesh Bank's systems and stole its credentials for payment transfers, two senior officials at the bank said. They then bombarded the Federal Reserve Bank of New York with nearly three dozen requests to move money from the Bangladesh Bank's account there to entities in the Philippines and Sri Lanka, the officials said.

Four requests to transfer a total of about $81 million to the Philippines went through, but a fifth, for $20 million, to a Sri Lankan non-profit organisation was held up because the hackers misspelled the name of the NGO, Shalika Foundation.

Hackers misspelled "foundation" in the NGO's name as "fandation", prompting a routing bank, Deutsche Bank, to seek clarification from the Bangladesh central bank, which stopped the transaction, one of the officials said.

There is no NGO under the name of Shalika Foundation in the list of registered Sri Lankan non-profits. Reuters could not immediately find contact information for the organization.

Deutsche Bank declined to comment.

At the same time, the unusually large number of payment instructions and the transfer requests to private entities - as opposed to other banks - raised suspicions at the Fed, which also alerted the Bangladeshis, the officials said.

The details of how the hacking came to light and was stopped before it did more damage have not been previously reported. Bangladesh Bank has billions of dollars in a current account with the Fed, which it uses for international settlements.

The transactions that were stopped totalled $850-$870 million, one of the officials said.

Last year, Russian computer security company Kaspersky Lab said a multinational gang of cyber criminals had stolen as much as $1 billion from as many as 100 financial institutions around the world in about two years.

Iraqi dictator Saddam Hussein's son Qusay took $1 billion from Iraq's central bank on the orders of his father on the day before coalition forces began bombing the country in 2003, American and Iraqi officials have said. In 2007, guards at the Dar Es Salaam bank in Baghdad made off with $282 million.

MONEY RECOVERED

Bangladesh Bank has said it has recovered some of the money that was stolen, and is working with anti-money laundering authorities in the Philippines to try to recover the rest.

A bank spokesman could not be reached for comment late on Thursday.

The recovered funds refer to the Sri Lanka transfer, which was stopped, one of the officials said.

Initially, the Sri Lankan transaction reached Pan Asia Banking Corp PABC.CM, which went back to Deutsche Bank for more verification because of the unusually large size of the payment, a Pan Asia official said.

"The transaction was too large for a country like us," the official said. "Then (Deutsche) came back and said it was a suspect transaction."

A Pan Asia spokesman could not immediately be reached for comment.

The dizzying, global reach of the heist underscores the growing threat of cyber crime and how hackers can find weak links in even the most secure computer networks.

More than a month after the attack, Bangladeshi officials are scrambling to trace the money, shore up security and identify weaknesses in their systems. They said there is little hope of ever catching the hackers, and it could take months before the money is recovered, if at all.

FireEye Inc's FEYE.O Mandiant forensics division is helping investigate the heist, people familiar with the matter told Reuters on Thursday.

The sources said Silicon Valley-based FireEye, which has investigated some of the biggest cyber thefts on record, was brought in by World Informatix, a smaller firm that is advising Bangladesh Bank on the investigation.

Security experts said the perpetrators had deep knowledge of the Bangladeshi institution's internal workings, likely gained by spying on bank workers. (Full Story)

The Bangladesh government, meanwhile, is blaming the Fed for not stopping the transactions earlier. Finance Minister Abul Maal Abdul Muhith told reporters on Tuesday that the country may resort to suing the Fed to recover the money.

"The Fed must take responsibility," he said.

The New York Fed has said its systems were not breached, and it has been working with the Bangladesh central bank since the incident occurred.

The hacking of Bangladesh Bank happened sometime between Feb. 4-5, over the Bangladeshi weekend, which falls on a Friday, the officials said. The bank's offices were shut.

Initially, the central bank was not sure if its system had been breached, but cyber security experts brought in to investigate found hacker "footprints" that suggested the system had been compromised, the officials said.

These experts could also tell that the attack originated from outside Bangladesh, they said, adding the bank is looking into how they got into the system and an internal investigation is ongoing.

The bank suspects money sent to the Philippines was further diverted to casinos there, the officials said.

The Philippine Amusement and Gaming Corp, which oversees the gaming industry, said it has launched an investigation. The country's anti-money laundering authority is also working on the case. (DHAKA, March 10/2016)

Short of options, Sri Lanka turns back to Beijing's embrace

http://economynext.com/Short_of_options,_Sri_Lanka_turns_back_to_Beijing_s_embrace-3-4226.html


Short of options, Sri Lanka turns back to Beijing's embrace cost to sri lanka 

Already, the suspension of work has cost $380,000 a day overall, 

By Shihar Aneez

Feb 11, 2016 08:27 AM GMT+0530 | 0 Comment(s)

(Reuters) - Just over a year after a new leader was elected and Sri Lanka's business ties with China came under close scrutiny, Colombo is reversing course by resuming a stalled port project and naming Beijing as the front runner for a new special economic zone.

India is nervous about losing influence over the island nation off its southern tip, while China's push into the Indian Ocean, and the possibility of dual purpose civilian-military facilities in Sri Lanka, are raising alarm further afield.

The ouster of President Mahinda Rajapaksa, who steered Sri Lanka towards China until 2015, was a setback for ties, as his successor reviewed projects to check if they were fair and legal.

Now Maithripala Sirisena's government, faced with falling foreign reserves, a balance of payments crunch and few, if any, alternative investors, is heading back into Beijing's embrace, albeit on better terms than before. Is it really  true ? who needs who more beijing or sri lanka
"The stance on China has completely changed," cabinet spokesman Rajitha Senaratne told Reuters. "Who else is going to bring us money, given tight conditions in the West?"

Most of the focus has been on the $1.4 billion port city China wants to build in the commercial capital, Colombo, where cranes and diggers have sat idle for months.

But according to International Trade Minister Malik Samarawickrama, Chinese investors have also expressed interest in a special economic zone (SEZ) in Hambantota, southern Sri Lanka, where a $1.7 billion seaport and airport built by the Chinese are operating at a fraction of capacity.

"We will agree to that. They will invest their own money. That's the way to go forward," Samarawickrama told Reuters.

INDIA "NOT CONCERNED"

Beijing's rehabilitation does not mean the door is closed to other potential investors in Sri Lanka's $79 billion economy.

Indian Foreign Minister Sushma Swaraj held talks with Sri Lankan Prime Minister Ranil Wickremesinghe for an SEZ in Trincomalee last week, according to an Indian official.

And New Delhi said it was not unduly worried by China's return to pole position in talks with Colombo.

"The relationship between India and Sri Lanka is robust, is getting stronger," said Renu Pall, joint secretary in the Indian foreign ministry in charge of the Indian Ocean region.

But so far, only Beijing had come up with specific proposals for a trade zone, an official at Sri Lanka's Board of Investment said.

Beijing has already pumped hundreds of millions of dollars into roads and ports since the end of Sri Lanka's civil war in 2009, when Colombo was largely shunned by Western investors over its human rights record.

China's interest is seen as part of its ambitions to build a "Maritime Silk Route" to the oil-rich Middle East and on to Europe.

That makes some countries, including India and the United States, nervous, with Sri Lanka sitting near shipping lanes through which much of the world's trade passes on its way to China and Japan.

Western diplomats have expressed particular concern over Hambantota, located in Rajapaksa's stronghold on the southern tip of the country, because they say it could have both civil and military use.

Sri Lanka's government says such fears are misplaced and that it plays host to a far higher number of ship visits by other foreign navies, including India's.

IMPROVING TERMS OF DEALS

The SEZ in Hambantota is the biggest of four proposals made by the Chinese to Sri Lanka's Board of Investment, the official there said. He did not provide details about others.

The SEZ is one of 45 projects the government plans to help lift growth at a time when public finances have deteriorated and Colombo is seeking an emergency IMF loan to avert a balance-of-payments problem.

Trade Minister Samarawickrama said the government decided to go ahead with the Colombo port city project after proposing to the Chinese to reduce the land area and limit the environmental impact.

Already, the suspension of work has cost $380,000 a day overall,
according to state-owned China Communications Construction Co Ltd (CCCC), which is financing the project.

"During negotiations, the new Sri Lankan government understood the reality and also the fact that they were legally bound by the contract," said an official at CHEC Port City Colombo (Pvt) Ltd, the local company handling the project.

Sri Lanka and the Chinese government also discussed loan terms, which critics said were too onerous on the host country, Finance Minister Ravi Karunanayake told Reuters.

"Everything is going well. If there were 7 percent (interest) loans, we have reduced to lower-regime loans," he said, without detailing which loans were being renegotiated.

China said it looked forward to working closely with Sri Lanka.

"We believe Sri Lanka ... will continue to deepen practical cooperation with China," said foreign ministry spokeswoman Hua Chunying. (Colombo/Feb11/2016)

China Port City company in Sri Lanka


this is not what the government said

China Port City company in Sri Lanka expects "mutually beneficial solution"

Mar 16, 2016 03:00 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - CHEC Port City Colombo (Pvt) Ltd, a Chinese state-run firm which was allowed to resume sea reclamation ahead of a visit by Prime Minister Ranil Wickremesinghe to China in April said it was expecting a "mutually beneficial solution."

Sri Lanka's current administration suspended work on the project in early 2015 after coming to power.

Sri Lanka's ports agency which has an interim concession agreement with CHEC Port City informed the firm in writing that the suspension of its work was lifted this week.

CHEC Port City is operating on an interim agreement with Sri Lanka's ports agency which was extended for six months by the cabinet of ministers earlier this month.

The firm however still has to sign a long term deal with Sri Lanka. The new administration has said the port agency has no capacity to contract with company to reclaim land and such powers have not been conferred to it.

"The Project Company recognised this positive step in moving forward, appreciating the efforts of the Government in working towards a mutually beneficial solution," the firm said in a statement.

The new administration has said it will not give the company freehold land and there has also been a move to make trim the size of the project, which some observers say may not be feasible if the project is to be completed in time.

It is not clear whether Sri Lanka will have to compensate the firm in some way for the losses caused. it is have been revealed  compensation for looses due to abrupt closer order is  not the question.Question is how much Some even sale the freehold land are has been increase as government has no funds formonatary compensations

CHEC Port City said "the suspension and the lengthy process taken to resume work have resulted in significant losses" to both the firm and the government of Sri Lanka.

"This is a result of the huge financial and resources commitment that is required for a project of this scale, the firm said.

"With the resumption of work now approved, the Project Company will commence with preparatory work as soon as feasible to ensure that the project can be completed in the expected timeframe."

International Trade Minister Malik Samarawickreme who visited Beijing earlier this month said Sri Lanka and China may incorporate a joint venture to run the project.

Under the earlier plan, Sri Lanka was to get some of the reclaimed land.

The Chinese are expected to spend 1.4 billion US dollars to reclaim the land and bring in up to 20 billion Us dollars investments over the next decade.