A budget replete with optimism-The Island

ENB Budget series:

ஏற்றுமதிப் பொருளாதாரம் என்கிற வேற்று மதி! 

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President Dissanayake is hopeful that a 5% economic growth will be attainable in 2025. He says growth will be facilitated by a strong export sector, where the government expects the exports of goods and services.

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A budget replete with optimism

Tuesday 18th February, 2025

President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Economic Stabilisation and National Policies, yesterday presented his government’s maiden budget in Parliament. He said the goal of Budget 2025 was to fulfil the aspirations of the people who had voted the NPP into power, hoping for sustainable growth and development.

The NPP government’s efforts to present an election-oriented budget have partially succeeded and borne mixed results. However painful the IMF bailout conditions may be, they have made the new administration remain focused on the need to achieve economic recovery and act with some restraint, ensuring that, inter alia, its revenue will amount to at least 15% of GDP, and the primary account will have a surplus. The Economic Transformation Act (ETA) has also become a kind of straitjacket on the government. With the local government polls approaching, what the NPP administration would have done to garner favour with the public, if not for the IMF programme and the ETA constraints, is anybody’s guess. President Dissanayake has said his government intends to amend the ETA. If it is planning to lower the bar for itself, such politically-motivated action will entail adverse economic consequences.

There is no gainsaying that workers deserve better salaries. However, one wonders whether the NPP government, just like its predecessors, is labouring under the misconception that it can grant relief to the public by increasing the state sector salaries. In the late 1980s, the JVP coined a pithy slogan—kolombata kiri, gamata kekiri (‘milk for Colombo and melon for the village’)—to highlight the glaring urban bias in the allocation of state resources. Today, it looks like a case of kiri for state employees and kekiri for their private sector counterparts, who have to bear the burden of maintaining the ever-burgeoning public sector by paying high taxes. President Dissanayake lamented in Parliament that the state employees’ real income had decreased. The same holds true for the non-state workers, and other members of the public as well, but they have been left fending for themselves.

Among the budget highlights flaunted by the government is what it calls the highest-ever fund allocations for the health and education sectors. The government has undertaken to allocate Rs. 604 billion for health. The cost of social welfare (Aswesuma) will be Rs. 232.5 billion. Capital expenditure will amount to 4% of GDP. Such spending will benefit the public, but much more needs to be done to mitigate the economic hardships they are facing.

Bridging a 6.7% budget deficit will be a gargantuan task. President Dissanayake is hopeful that a 5% economic growth will be attainable in 2025. He says growth will be facilitated by a strong export sector, where the government expects the exports of goods and services to reach an all-time high of close to USD 19 billion in the current year; this growth in non-debt creating inflows along with robust economic growth and a primary account surplus of 2.3 percent of GDP will ensure that Sri Lanka will be well placed to make debt service payments from 2028 onwards.

President Dissanayake has said he expects the relaxation of restrictions on vehicle imports to deliver a bulk of the country’s revenue gains for 2025. It is fervently hoped that he is not being as optimistic as the proverbial poor man who ordered oysters for dinner hoping to settle the bill with pearls he expected to find on his plate. Some economic analysts have argued that there is the possibility of extremely high taxes, which are sure to drive automobile prices up, causing a drop in the sales of imported vehicles and preventing the government from achieving its revenue targets. How does the NPP administration propose to handle such an eventuality?🔺

Pro-business Budget but implementation is key: Murtaza

Advocata Institute Chairman
Murtaza Jafferjee

நிதி மூலதனமே நிவாரணம்!

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“We need Foreign Direct Investment (FDI). So, for the proposals to have more industrial zones is important.

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Pro-business Budget but implementation is key: Murtaza

 FT Tuesday, 18 February 2025 By Darshana Abayasingha

“There is a misperception of the Government ideology given its roots. This is a market-oriented pro-business Budget. But the devil is in the details. If the Government can get implementation right, then in one year Sri Lanka will be in a better place,” Jafferjee said, delivering the keynote at the KPMG 2025 Budget Forum last night.

Using an economist’s lens – but “tinted with capitalism” – he said a few policies are problematic and hitting the revenue targets can be challenging, whilst debt remains a huge concern. 

Tax revenue will have to grow by 23%, which is a tall order, he noted. “You will need many people who love cars more than houses to get that Rs. 230 billion number from vehicles.”

Jafferjee said he is confident the Government may hit the primary balance target spelt out in the Budget and recognised the need to enhance capital expenditure as spelt out in the Budget to ensure infrastructure remains serviceable. 

However, he lamented under-priced fuel, which he said results in the richest 30% of households getting 70% of benefits. There is a need to grow export contributions to Sri Lanka’s growth as our representation globally is in very few products. 

“We need Foreign Direct Investment (FDI). So, for the proposals to have more industrial zones is important. We need to attract foreigners to come and reside in our cities and work here and contribute to this process. We need to be more welcoming. We have a large diaspora so we need to attract some of them back,” Jafferjee said. 

He also touched on the need to develop a capable State capable of driving implementation. “So we need high paying jobs in the State sector, but the pay is not good.”

KPMG Sri Lanka Principal – Tax and Regulatory Suresh Perera said: “We need more science in our tax systems and reforms. We need a specialised unit advising the Finance Minister. A trial and error basis won’t work. We have done that for 20 years now.”. 🔺

What A Budget!

ENB-Budget series

தனியார்மயமே தாரக மந்திரம்! 

Harsha Gunasena

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However, the positive policy direction of the Government which is a deviation from the policy stance of the JVP would be a reality.

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What A Budget!

Prior to the Presidential Election I was at a seminar and I was questioned about what will happen after the elections. I said if Anura Kumara Dissanayake (AKD) wins he will continue with the IMF programme irrespective of the claims that NPP will seek to alter the Debt Sustainability Analysis (DSA). However, I said their problem would be the failure of implementing the capitalist economic reforms such as shrinking of the state sector and as a result the government would face difficulties in continuing with the IMF progamme.

When the President delivered his “throne speech“ at the Parliament, I said at a webinar (Kathikava) organized to discuss it by the National Movement for Social Justice, that AKD is more towards right compared to the other JVP leaders who are towards the left. Therefore, I liked keeping the Finance portfolio with him, although as a policy I disagreed to it since by that act financial control of the Republic by the Parliament, which is the legitimate right of the Parliament, is loosened. However, it was the best option under the given circumstances.

I expressed concerns that since the JVP is in power and not the NPP, their pro left ideology would hamper the essential economic reforms since capitalist reforms could not be done with a leftist ideology. I said however it would be possible if AKD would be able to take the control into his hands and that happened in the  budget speech.

In Sri Lanka people are worried when the government sells state assets. These people think that ‘somehow’ the state should manage it. There were instances where the state assets were sold to the cronies of the ruling party to which no one would agree. Even though the selling process is transparent these people disagree with it. In personal capacity they may sell their assets if faced by strong financial constrains, but not at the national level.

I presume that the former President Ranil Wickremesinghe (RW) delayed any privatization or restructuring the state assets or entities fearing of this public opinion orchestrated by mainly the people with JVP ideology. What is happening now is overruling the JVP ideology by the JVP which is beneficial to the country. In the coming years leftist ideologies will be crucified by the JVP and if not, the country will get crucified.

By this leftist ideology I mean mainly maintaining a large state. The JVP started talking of inequality of income distribution recently. In the policy statement of Rapid Response released during Covid time, they were focusing on criticizing the open economy in toto. It went on to state, “Introduced in 1977, the Open Economic Policy has been destructive through its prioritization of personal gain over social responsibility.” RW, considered as a neo-liberal, strengthened the monitoring power of the state by introducing various Acts which was contrary to the neo-liberal thinking.

In the budget speech AKD said that Sri Lanka’s network of Free Trade Agreements (FTAs) with strategic partners, particularly with a view to greater economic ties with ASEAN nations will be expanded through the Regional Comprehensive Economic Partnership (RCEP) and other agreements. There is no mention of reviewing the existing FTAs as mentioned in their election manifesto. The said group of Sri Lankan ideologists are against the FTAs.

AKD identified that the state is larger than it should be. Therefore, a Committee under the Prime Minister’s Secretary has already been appointed to review the functions and utility of a plethora of Government agencies. It would be possible to determine which agencies need to continue, which need to be amalgamated with other agencies, and which agencies need to be discontinued, which need to change their objectives. A Holding Company under the full control of the Government will be established under which selected SOEs are held as subsidiaries with a view to improve governance, financial discipline and operational efficiency. The government will actively encourage private and appropriate state entities to raise funds through listed equity and debt capital markets. Therefore, it is ideal if this Holding Company can be listed in the Stock Market even though it is under the full control of the Government.

The Government will lease out under-utilized state-owned land for productive economic activities. Some of the lands presently managed by LRC, RPCs, SLSPC, JEDB and under-utilized will be identified and brought in for private investment including SMEs taking the suitability of the land into consideration. The Government  propose to allocate Rs. 250 million to undertake initial activities in this regard. The proposed Colombo West Terminal 2 and Colombo North Port are expected to expedite the performance of Sri Lanka’s ports. Therefore, the Government will call for Expression of Interest for these projects within a month. These are not selling but ‘selling’ which is the real need of the country.

Government will call for foreign direct investments to optimize the utilization of Sri Lanka’s untapped potential in investment, industrial development, and value added exports of Sri Lanka’s mineral resources and marine economy. To provide energy at a competitive cost to industries, exporters, and consumers, the Government  will welcome energy investments based on the lowest tariffs and we will not provide preferential treatment purely on the company or the country of origin. The criticism of taking the profits away is not valid now.

There was a proposal to expand the export-oriented investments  through Public Private Partnership (PPPs) and privately run zones. The concept of privately run zones is a novel idea. There will be 5 industrial parks for which Rs. 500 million was allocated. it is proposed to establish an Industrial Estate dedicated for Automobile components and rubber manufacturing and Rs.1.5 billion was allocated for this. It is not sure whether this money is sufficient since over the several years there were proposals to have industrial zones but those were not implemented.

An Investment Protection Bill will be enacted to facilitate and protect investments, and a Public Private Partnership (PPP) Bill also will be introduced. He said that the country’s ease of doing business will be prioritized which is much needed.

Barriers for local firms to invest overseas will be reviewed and gradually rationalised by establishing appropriate safeguards to track repatriation of earnings and dividends. This is easing of the Capital Account. Commercial usability of land will be increased by expediting Bimsaviya but he was silent about the Urumaya pragramme the intention of which was also the same.

In order to support the SMEs, the Government is working towards setting up a development bank. As a first step, the function of a development bank through a new administrative structure will be established through the existing state bank mechanism. The Government will support this task through the National Credit Guarantee Institution (NCGI). Also Rs. 1000 million is allocated to commercialize the inventions.

The Government allocated Rs.35 billion for the fertilizer subsidy of paddy farmers and Rs. 78 billion to the irrigation sector development. In order to improve the productivity of the paddy farmers the Government should focus on allowing paddy farmers to cultivate commercial products which is prohibited in Agrarian Development Act.

Allocation of Rs.5 billion to purchase of paddy and Rs.20 billion to Sri Lankan Airlines would be a waste. Rs. 20 billion will be used by Sri Lankan Airlines to pay interests and repay the loans which may facilitate the company to borrow again. The President said that the treasury would not allocate money for recurrent expenses of the Airline. This colossal waste of public money to this “strategic investment” should be stopped.

The Government should explain why the existing vacancies cannot be filled by the graduates who are already recruited as development officers and who are not engaged with productive work.

In the previous budgets the common phenomenon was to have several budget proposals but hardly they were implemented. With financial constraints those will be thrown away out of the window. The capital expenditure would be affected first. It is likely since the recurrent expenses were increased in the budget proposals. I do not take these proposals seriously until they are implemented. However, the positive policy direction of the Government which is a deviation from the policy stance of the JVP would be a reality.🔺

President Dissanayake’s full budget speech

President Dissanayake’s full budget speech

ADA February 17, 2025 

President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, presented his maiden Budget Speech in the Parliament today (17).

The 79th budget of the Independent Sri Lanka aimed at developing the country in a way that enables it to repay debt when repayment commences in 2028 today (17), encapsulated three main facets;

1. Growth of production of industry, services and agriculture.
2. Production must take place with the active engagement and participation of people.
3. The benefits and gains from production must be equitably shared across society.

The Head of the State also noted that this years’ budget is prepared based on these principles, and that the government intend to set a foundation to create an economy where all citizens are active participants, active stakeholders, and active beneficiaries.

According to the Head of State, the budget deficit for the fiscal year 2025 is estimated at Rs. 2,200 billion, which is 6.7 as a percentage from the GDP.

The total expenditure for next year will be Rs. 7,190 billion, which is 21.8% of the country’s GDP and the total revenue and grants will be Rs. 4,990 billion (15.09%).

The government has allocated Rs. 5,886 billion for recurring expenditure such as subsidies and salary payments. For salaries and wages, Rs. 1,230 billion has been set aside, and Rs. 1,290 billion for subsidies and transfers.

President’s full budget speech is as below; 

TEXT (English)

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New African Union leader elected as two major crises rage

Video

New African Union leader elected as two major crises rage

February 15, 2025  VOA By Harun Maruf , Eskinder Firew

The leaders of Africa Union countries on Saturday chose a new chief for the branch that runs the organization’s daily operations, as conflicts persist in two of the largest three countries on the continent.

At their annual summit in Addis Ababa, Ethiopia, the organization’s members elected Djibouti Foreign Minister Mahmoud Ali Youssouf as the next chair of the African Union Commission in a secret ballot.

Youssouf, who celebrated his 60th birthday a week ago, defeated Kenya’s former Prime Minister Raila Odinga and former Foreign Minister of Madagascar Richard Randriamandrato. The selection took several rounds of voting.

Youssouf was a close second in the first and second rounds behind Raila. In the following four rounds, Youssouf took the lead until he became the sole candidate in the seventh round, with an unassailable 33 votes needed for victory in the final.

He replaces Moussa Faki Mahamat of Chad, who served two terms as AU commissioner.

Youssouf, who has been minister of foreign affairs of the Republic of Djibouti since 2005, is the longest-serving foreign minister on the continent.

All 55 member states, with the exception of six countries that were suspended from membership, are taking part in the summit. An Ethiopian Foreign Ministry source speaking on condition of anonymity because they were not authorized to speak on the matter told VOA’s Horn of Africa Service that 29 presidents, three vice presidents, four prime ministers and a king are in attendance.

New chief inherits crises

The election of the new chief comes as the conflict in Africa’s second-largest country, the Democratic Republic of Congo, escalates following recent territorial gains by M23 rebels.

The M23 forces approached the second-biggest city in eastern DRC, Bukavu, two weeks after seizing the main city of Goma. The DRC accuses Rwanda of backing the rebels, although Rwanda denies supporting M23.

The continent’s leaders called for an immediate and unconditional ceasefire, cessation of hostilities and the reopening of main supply routes and Goma airport.

Sudan is another major focal point of conflict that leaders are discussing. United Nations Secretary-General Antonio Guterres, who is at the summit, called on warring parties in Sudan to cease hostilities and protect civilians, including humanitarian workers.

Guterres appealed for $6 billion to address the needs of about 26 million Sudanese who need emergency assistance.

In an interview with VOA Horn of Africa last year, Youssouf vowed to work on “silencing the guns” on the continent.

“Silencing the gun, you know, preventing conflicts, resolving those wars and internal crises ... that we are faced with already is one of the priorities,” he said.

“Of course, this is something that we need to work on, and I'll make sure that the commission will concentrate on that particular program.”

Youssouf also said he will work to reform the organization, recruit the most qualified and skilled Africans, and make excellence, merit and competence the key principle.

“If you have a good staff at the commission, it will be much easier for all of us to implement the reforms that have already been enacted by our leaders,” he said.

Meanwhile, Angolan President Joao Manuel Goncalves Lourenco took the rotating African Union chairmanship, replacing Mauritanian President Mohamed Ould Cheikh Ghazouani. 🔺

All eyes today on AKD’s maiden Budget

President Anura Kumara Dissanayake yesterday putting the final touches to the 2025 Budget, along with Treasury Secretary Mahinda Siriwardana 

All eyes today on AKD’s maiden Budget

FT Monday, 17 February 2025 By Nisthar Cassim 

• Deliverable and credible Budget envisaged whilst fixing imbalances in economy
• Decentralisation and poverty alleviation key focus, with emphasis on meritocracy, equal opportunities, level playing field
• Salary hike for public servants and relief for working class would require extra revenue
• Expect “pro-poor Budget” says Prime Minister in Jaffna
• Analysts tip 2025 Budget to unleash opportunities for private sector and local industries
• Given continuity in IMF program, measures to sustain reforms and transformation envisaged
• MSMEs want President to ensure more practical and genuine relief from banking sector in terms of debt relief and restructuring
• Two minor elections could tempt NPP Govt. to be populist via Budget 2025, analysts caution

 

President and Finance Minister Anura Kumara Dissanayake will present his maiden Budget for 2025 today in Parliament, with stakeholders maintaining a mixed view given the country’s overall weak financial status, ‘wait and see’ attitude of businesses, struggles by the SMEs, and relatively slow consumer spending despite improving macroeconomic indicators. The President’s Media Division yesterday released the customary picture of President Dissanayake putting the final touches to the 2025 Budget, along with Treasury Secretary Mahinda Siriwardana. The President will make the presentation on the Budget 2025 today at 10:30 a.m. in Parliament. Analysts expect Dissanayake, given his pragmatism, to present a Budget that they described as “deliverable or doable and credible” as opposed to unrealistic and far too ambitious. The President and Sri Lanka have committed to proceed with the four-year program of the International Monetary Fund (IMF) under the $ 3 billion Extended Fund Facility (EFF), widely seen as critical to sustain the stability achieved post the external debt-standstill announced in April 2022.Given the unprecedented mandate he received nationwide, including the north and east, in the September 2024 Presidential Election, and the super majority in the November 2024 Parliamentary poll, Dissanayake is also expected to present a Budget that will focus on decentralisation and poverty alleviation. Prime Minister Dr. Harini Amarasuriya in Jaffna yesterday said a “pro-poor” Budget will be delivered, with emphasis on the weakest or most vulnerable sections of society, including those in poverty, pensioners, and the differently-abled.

Most analysts also expected the 2025 Budget to unleash opportunities for the private sector, being the country’s engine of socio-economic growth, to ensure fuller recovery from this year onwards. An emphasis on meritocracy, equal opportunities, and a level playing field is also expected. Others believe a greater emphasis on expanding and strengthening local industries can be envisaged in the Budget.

However, the Micro, Small and Medium Entrepreneurs and Enterprises (MSMEs) are expecting the President and the Government to ensure a more practical and genuine relief from the banking sector in terms of debt relief and restructuring. On his own admission, the President during the launch of the ‘Clean Sri Lanka’ program said with the upcoming Budget, the Government aims to steer economic programs towards the eradication of poverty in our nation.

At the ceremony held on 1 January, Dissanayake also assured a new economic policy framework which will address challenges in the economic system.

“Economic reforms are being formulated to ensure that economic benefits reach rural communities, as an economy concentrated in the hands of a small group can never bring stability to society. Such an imbalanced economy fosters instability for the nation and its people. Therefore, achieving economic stability requires extending economic benefits to rural populations. With the upcoming Budget, we aim to steer economic programs toward the eradication of poverty in our nation,” the President stressed.

In the 2025 Budget, he is also expected to further solidify measures towards digital transformation, thereby minimising inefficiency and corruption while enabling citizens to interact seamlessly and effectively with State mechanisms.

A similar stance is expected with regard to the ‘Clean Sri Lanka’ initiative as well. In this regard, the policy statements under the Budget 2025 will be specific measures to curb the trafficking, spread, and use of substances, especially among youth.

The move to increase salaries to public servants and offer relief to the working class via reduced tax on employment would require additional revenue.

The background amidst which the 2025 Budget comes, according to the Central Bank, comprises economic recovery gaining momentum supported by improving business confidence and market sentiments, as well as the robust expansion of private sector credit, reflecting relaxed monetary conditions. The economy in 2024 is estimated to have bounced back to achieve 5% growth as against 2.3% contraction in 2023 and by 7.8% in 2022.

Earnings from merchandised and services exports hit an all-time high of $ 16.17 billion in 2024, with merchandised exports growing 7% to $ 12.7 billion. However, a rebound in imports – up 12% to $ 18.9 billion – saw the merchandise trade deficit widening to $ 6 billion from $ 5 b in 2023. Workers’ remittances grew by 10% to $ 6.5 billion and earnings from tourism jumped by 53% to $ 3.17 billion. Gross Official Reserves rose to $ 6.1 billion from $ 4.4 billion in 2023. Last year also saw the external debt restructuring process, except for a small portion, being completed successfully.

Government revenue in 2024 rose by 22.7% to an all-time high of Rs. 4.14 trillion. Government expenditure remained more or less unchanged at Rs. 4.8 trillion up to November 2024 in comparison to a year earlier, whilst the Budget deficit declined to Rs. 1.2 trillion as against Rs. 2 trillion.

The country is in an unprecedented situation with 2% deflation as of end 2024 and likely to last till 1Q or beyond. Despite CBSL perspective, consumer demand remains subdued with FMCG companies opting to value additions and budget solutions. Most expect consumer spending to uptick from March ahead of Sinhala-Tamil New Year. With two minor elections slated for the rest of the year, the President Dissanayake-led National People’s Power could become populist via the 2025 Budget though independent analysts have cautioned otherwise.🔺

Munich Security Conference 2025

   On Saturday, debates will take place on the state of the international order as well as regional conflicts and crises. The future of the transatlantic partnership will also be a focus of the second day of the conference.

The MSC 2025 comes at a pivotal moment of change: a new US administration takes office in January, a new cycle of European legislature in Brussels and German parliamentary elections follow just one week after the conference.

After an opening by Federal President Frank-Walter Steinmeier on February 14, hundreds of decision-makers and opinion leaders from different regions of the world will discuss the world's security policy challenges under the chairmanship of Christoph Heusgen.

On Friday, the conference’s main program will start with a focus on global security challenges, including global governance, democratic resilience, climate security, and many more topics. On Saturday, debates will take place on the state of the international order as well as regional conflicts and crises. The future of the transatlantic partnership will also be a focus of the second day of the conference. On Sunday, the conference will wrap up with discussions on Europe’s role in the world.

The MSC 2025 will once again serve as a marketplace for ideas and create space for as many relevant and consequential debates as possible. As in previous years, the conference’s program consists of three parts: the main program curated by the MSC, around 200 official side events, and dozens of public outreach events. The day before the conference, the Minister of Finance of the Federal Republic of Germany, Jörg Kukies, will bring together ministers and high representatives from international institutions for the 4th No Money for Terror Ministerial Conference on Counter-Terrorism Financing.

At the end of the third and last conference day, Jens Stoltenberg will succeed Christoph Heusgen as the new Chair of the MSC.🔺

தையிட்டி விகாரை விவகாரத்தை விரைவில் தீர்த்து வைப்போம்- அமைச்சர் இ , சந்திரசேகர்

``விகாரை கட்டப்பட்டுள்ள காணியை மாத்திரம் தருமாறும், விகாரையை சுற்றியுள்ள ஏனைய காணிகளை மக்களிடம் மீள கையளிக்க தயாராக உள்ளதாகவும் விகாராதிபதி தெரிவித்துள்ளார்``. 

கடற்தொழில் அமைச்சர் இ ,  சந்திரசேகர்  

உறக்கத்தில் உள்ள இனவாதத்தை மீண்டும் எழும்ப அனுமதிக்க முடியாது. அதனால் தையிட்டி விகாரை விவகாரத்தை விரைவில் தீர்த்து வைப்போம் என கடற்தொழில் அமைச்சர் இ ,  சந்திரசேகர் தெரிவித்துள்ளார். 

யாழ்ப்பாண மாவட்டத்தில் 2025 ஆம் ஆண்டிற்கான பன்முகப்படுத்தப்பட்ட வரவு செலவு வேலைத்திட்டங்களை நடைமுறைப்படுத்தல் தொடர்பான கலந்துரையாடல் இன்றைய தினம் வெள்ளிக்கிழமை மாவட்ட ஒருங்கிணைப்புக் குழுத் தலைவர், கடற்றொழி்ல் அமைச்சர் இராமலிங்கம் சந்திரசேகர் தலைமையில் நடைபெற்றது. 

அதன் பின்னர் ஊடகங்களுக்கு கருத்து தெரிவிக்கும் போதே அவ்வாறு தெரிவித்தார். 

மேலும் தெரிவிக்கையில், 

தையிட்டி விகாரை விவகாரம் விரைவில் முடிக்கப்பட வேண்டும். இல்லையெனில் எதிர்காலத்தில் பாரிய விளைவுகளை அது ஏற்படுத்தும். 

உறக்கத்தில் உள்ள இனவாதத்தை மீண்டும் எழும்ப விட கூடாது.  அதனால் அடிப்படையில் இவ்வாறான பிரச்சனைகள் உருவாகுவதை அனுமதிக்க முடியாது. 

விகாரை விவாகரத்தில் பாதிக்கப்பட்ட காணி உரிமையாளர்கள் , அப்பிரதேச மக்கள் , மத தலைவர்கள் , சிவில் சமூக பிரதிநிதிகள் உள்ளிட்ட தரப்பினர்களுடன் விரைவில் பேசவுள்ளோம். 

விகாரை கட்டப்பட்டுள்ள காணியை மாத்திரம் தருமாறும், விகாரையை சுற்றியுள்ள ஏனைய காணிகளை மக்களிடம் மீள கையளிக்க தயாராக உள்ளதாகவும் விகாராதிபதி தெரிவித்துள்ளார். 

எனவே விகாரை விவாகரத்தில் யாருக்கும் பாதிப்பில்லாத வகையில் அதனை தீர்க்க விரைந்து நடவடிக்கை எடுப்போம் என தெரிவித்தார். 

White House bars AP reporter from Oval Office because of AP style policy on ‘Gulf of America’

By  DAVID BAUDER, February 12, 2025

NEW YORK (AP) — The White House blocked an Associated Press reporter from an event in the Oval Office on Tuesday after demanding the news agency alter its style on the Gulf of Mexico, which President Donald Trump has ordered renamed the Gulf of America.

The reporter, whom the AP would not identify, tried to enter the White House event as usual Tuesday afternoon and was turned away. Later, a second AP reporter was barred from a late-evening event in the White House’s Diplomatic Reception Room.

The highly unusual ban, which Trump administration officials had threatened earlier Tuesday unless the AP changed the style on the Gulf, could have constitutional free-speech implications.

Julie Pace, AP’s senior vice president and executive editor, called the administration’s move unacceptable.

“It is alarming that the Trump administration would punish AP for its independent journalism,” Pace said in a statement. “Limiting our access to the Oval Office based on the content of AP’s speech not only severely impedes the public’s access to independent news, it plainly violates the First Amendment.”

The Trump administration made no immediate announcements about the moves, and there was no indication any other journalists were affected. Trump has long had an adversarial relationship with the media. On Friday, the administration ejected a second group of news organizations from Pentagon office space.

Before his Jan. 20 inauguration, Trump announced plans to change the Gulf of Mexico’s name to the “Gulf of America” — and signed an executive order to do so as soon as he was in office. Mexico’s president responded sarcastically and others noted that the name change would probably not affect global usage.

Besides the United States, the body of water — named the Gulf of Mexico for more than 400 years — also borders Mexico.

The AP said last month, three days after Trump’s inauguration, that it would continue to refer to the Gulf of Mexico while noting Trump’s decision to rename it as well. As a global news agency that disseminates news around the world, the AP says it must ensure that place names and geography are easily recognizable to all audiences.

AP style is not only used by the agency. The AP Stylebook is relied on by thousands of journalists and other writers globally.

Barring the AP reporter was an affront to the First Amendment of the U.S. Constitution, which bars the government from impeding the freedom of the press, said Tim Richardson, program director of journalism and misinformation for PEN America.

The White House Correspondents Association called the White House move unacceptable and called on the administration to change course.

“The White House cannot dictate how news organizations report the news, nor should it penalize working journalists because it is unhappy with their editors’ decision,” said Eugene Daniels, WHCA’s president.

This week, Google Maps began using “Gulf of America,” saying it had a “longstanding practice” of following the U.S. government’s lead on such matters. The other leading online map provider, Apple Maps, was still using “Gulf of Mexico” earlier Tuesday but by early evening had changed to “Gulf of America” on some browsers, though at least one search produced results for both.

Trump also decreed that the mountain in Alaska known as Mount McKinley and then by its Indigenous name, Denali, be shifted back to commemorating the 25th president. President Barack Obama had ordered it renamed Denali in 2015. AP said last month it will use the official name change to Mount McKinley because the area lies solely in the United States and Trump has the authority to change federal geographical names within the country.🔺

India, US agree to resolve trade and tariff rows after Trump-Modi talks

By Nandita Bose, Trevor Hunnicutt and David Brunnstrom February 14, 2025 

U.S. President Donald Trump and Indian Prime Minister
Narendra Modi shake hands,at the White House in
Washington, D.C.,U.S., February 13, 2025.
REUTERS/Kevin Lamarque

WASHINGTON, Feb 13 (Reuters) - India and the U.S. agreed on Thursday to start talks to clinch an early trade deal and resolve their standoff over tariffs as New Delhi promised to buy more U.S. oil, gas and military equipment and fight illegal immigration.

The series of agreements emerged after talks between U.S. President Donald Trump and Indian Prime Minister Narendra Modi at the White House, just hours after Trump railed against the climate for U.S. businesses in India and unveiled a roadmap for reciprocal tariffs on countries that put duties on U.S. imports.

• Summary

Trump calls India tariffs 'unfair', limits access to U.S.
India, U.S. set for early trade talks
Initial segments of trade deal to be negotiated by fall 2025
India to raise U.S. energy purchases to $25 bln from $15 bln
Two countries agree to aggressively address illegal immigration

"Prime Minister Modi recently announced the reductions to India's unfair, very strong tariffs that limit us access to the Indian market, very strongly," Trump said. "And really it's a big problem I must say."

The deal to resolve trade concerns could be done within the next seven months, said India's Foreign Secretary Vikram Misri.

A joint statement after the meeting said Washington welcomed New Delhi's recent steps to lower tariffs on select U.S. products and increase market access to U.S. farm products, while seeking to negotiate the initial segments of a trade deal by the fall of 2025.

While both leaders "had their perspectives" on tariffs, "what is more remarkable...is the fact that we have a way forward on this issue," Misri said.

Some of the leaders' agreements are aspirational: India wants to increase by "billions of dollars" its purchases of U.S. defense equipment and may make Washington the "number one supplier" of oil and gas, Trump said at a joint press conference with Modi.

And Delhi wants to double trade with Washington by 2030, Modi said. Long-planned cooperation on nuclear energy, also discussed by the leaders, faces ongoing legal challenges.

"We're also paving the way to ultimately provide India with the F-35 stealth fighters," said Trump.

Misri, the Indian official, later said the F-35 deal was a proposal at this point, with no formal process underway. The White House did not respond to a request for comment on any deal.

WHAT TRUMP WANTS

Although Trump had a warm relationship with Modi in his first term, he again said on Thursday that India's tariffs were "very high" and promised to match them, even after his earlier levies on steel and aluminum hit metal-producing India particularly hard.

"We are being reciprocal with India," Trump said during the press conference. "Whatever India charges, we charge them."

Elon Musk meets Indian Prime Minister Narendra Modi, in Washington, D.C., U.S., February 13, 2025, in this picture obtained from social media.@narendramodi via X/via REUTERS

Modi vowed to protect India's interests.

"One thing that I deeply appreciate, and I learn from President Trump, is that he keeps the national interest supreme," Modi said. "Like him, I also keep the national interest of India at the top of everything else."

The two leaders praised each other and agreed to deepen security cooperation in the Indo-Pacific, a thinly veiled reference to competition with China, as well as to start joint production on technologies like artificial intelligence.

Asked before the meeting about the steps India was taking, one source described it as a "gift" for Trump designed to lower trade tensions. A Trump aide said that the president sees defense and energy sales to India lowering the U.S. trade deficit.

India's energy purchases from the U.S. could go up to $25 billion in the near future from $15 billion last year, India's Misri said, adding that this could contribute to reducing the trade deficit.

Tariffs will continue to dominate the two countries' relationship, said Richard Rossow, head of the India program at the Center for Strategic and International Studies, a think tank.

"It's going to be a boxing match," he said. "India is willing to take a few hits, but there's a limit."

The U.S. has a $45.6 billion trade deficit with India. Overall, the U.S. trade-weighted average tariff rate has been about 2.2%, according to World Trade Organization data, compared with India's 12%.

• ENB-Summary

New Delhi promised to buy more U.S. oil, gas and military equipment and fight illegal immigration.

FIGHT ILLEGAL IMMIGRATION

Trump wants more help from India on unauthorized immigration. India is a major source of immigrants to the United States, including a large number in the tech industry on work visas and others in the U.S. illegally.

The joint statement said the two countries agreed to aggressively address illegal immigration and human trafficking by strengthening law enforcement cooperation.

India may prove critical to Trump's strategy to thwart China, which many in his administration see as the top U.S. rival. India is wary of neighboring China's military buildup and competes for many of the same markets.

Modi also worries that Trump could cut a deal with China that excludes India, according to Mukesh Aghi, president of the U.S.-India Strategic Partnership Forum lobbying group.

India has continued its ties with Russia as it carries out its war with Ukraine. India has remained a major consumer of Russian energy, for instance, while the West has worked to cut its own consumption since the war started.

"The world had this thinking that India somehow is a neutral country in this whole process," said Modi. "But this is not true. India has a side, and that side is of peace."🔺