Sri Lankan jets bomb rebel bunkers

Sri Lankan fighter jets bombed Tamil Tiger bunkers in the embattled north, a day after scattered ground battles killed 17 rebels, the military said.

The military bombers hit rebel positions in Thunukkai village of rebel-held Mullaitivu district, a military statement said. It did not give details of casualties or damage.

Friday's infantry fighting broke out in the Mannar, Vavuniya and Welioya regions surrounding the rebels' northern stronghold, it said.

Seventeen guerrillas were killed. No soldiers died, but some were wounded, the military said.

Rebel spokesman Rasiah Ilanthirayan could not immediately be reached for comment, and it was not possible to verify the military's claims because reporters are barred from the war zone.

Each is side known to exaggerate casualties inflicted on the other and under-report their own.

The Tamil Tigers have been fighting since 1983 to create an independent state for ethnic minority Tamils, who have been marginalised by successive governments controlled by ethnic Sinhalese.

More than 70,000 people have been killed in the conflict.

The government has stepped up operations around the rebels' de facto state in the north in an effort to deliver on its promise to crush the group by the end of this year.

Source: PA

Sri Lanka tightens use of mobile phones to fight terrorism

Sri Lanka Saturday tightened mobile phone regulations and forced service providers to maintain full details of phone users as part of anti-terrorism moves.

Phone operators were told to check the identity of subscribers before signing them up, Telecommunications Regulatory Commission chief Priyantha Kariyapperuma said.

New and current subscribers also need to keep a certified copy of the letter issued by the operator for inspection by police and military, in order to prove the ownership of the phone connection, he said.

"The rules were brought in on the request of the defence ministry, because mobile phones are misused for terrorist activities. The government is finding it difficult to trace the real owners," he told AFP.

Separatist Tamil Tiger rebels, who are fighting for a separate homeland for minority Tamils from the majority Sinhalese community, are known to use several mobile phone connections under different names to evade detection.

Mobile telephones have also been used to remotely detonate bombs.

Kariyapperuma announced the new rules would go into effect "immediately" but said existing users would be given "some reasonable time" to get their paperwork sorted out.

Sri Lanka, which has a population of 20 million people, has 12 million telephone subscribers, of which 10 million are mobile phones, Kariyapperuma said.

Source: AFP

Sri Lanka hike cricket players’ fees

Sri Lanka Cricket has agreed to raise players’ fees and perks as part of a deal to settle a long-running dispute over contracts, officials said yesterday.

SLC officials and player representatives thrashed out a deal over the last two days that ended four months of negotiations, amid growing resentment by the country’s top cricketers.

“The meetings ended amicably and they agreed to our request related to the annual fees, match payments and player welfare,” said Graeme Labrooy, the secretary of the Sri Lanka Cricketers’ Association.

The deal, which will be signed next Wednesday, raises the Test match fee from $3,500 to $5,000, while the fee for one-dayers and Twenty20s will increase from $1,800 to $3,000.

Under the new contracts, there is a freeze on annual retainers for senior team members, but substantial increases for junior players on the national squad and the A team.

“Sri Lanka Cricket was keen to give an increase to junior players and also encourage non-contracted players by making the match fees the same for all,” Labrooy said. Cricketers will be allowed to write articles and have media contracts, which will be regulated by an existing Code of Conduct for all players.

Annual player contracts were due to be finalised by March 31, but the national players have not been paid since the tour of Australia in February.

“Sri Lanka Cricket agreed to back-date the players’ contract payments from March 1, 2008. The contract runs till February 2009,” Labrooy said.

“The players will sign their contracts next week.”

Source: khaleejtimes

Amnesty condemns Buttala attack

London based rights watchdog, Amnesty International (AI), has condemned the continuous attacks on civilians in Sri Lanka.
In a statement issued on Friday after the attack on a bus in Buttala, the AI has called upon all parties in to the conflict to abide by the international law.

“These indiscriminate attacks are brutal. The victims are overwhelmingly people who are trying to go about their everyday lives, living in fear of attacks at any time, with the added untold suffering this brings to their relatives”, the AI statement said.

'Brutal' attack

At least four people have been killed and 25 others wounded when gunmen ambushed a crowded passenger bus in Sri Lanka, the army has said.

The attack took place in the southern town of Buttala, 240km (150 miles) south-east of the capital, Colombo.

Unidentified gunmen hiding by the side of the road began firing at the bus as it passed, officials said.

They blamed the attack on Tamil Tiger rebels who are fighting for an independent homeland in Sri Lanka.

'Sped through'

"A group of gunmen hiding by the side of the road near Buttala raked the passing civilian bus with gunfire," news agency Associated Press quoted military spokesman Brigadier Udaya Nanayakkara as saying.

"The bus driver sped through the ambush, only stopping when he reached safety," he said.

"Two females and a 12-year-old child were among the victims killed in this attack and their bodies have been laid at the hospital," the defence ministry said in a statement.

An injured civilian succumbed to injuries at the hospital, taking the number of dead to four, the statement said.

The wounded have been admitted to nearby hospitals, officials said.
In January, 26 people died in a bomb attack on a bus in the same area.

There has been no immediate word from the rebels, who have carried out a number of attacks in the south in recent months.

Buttala is in a Sinhalese-dominated area, far from the rebels' stronghold in the north.

Source: bbc

Sri Lanka's June tourist arrivals fall 9.3-pct

Sri Lanka attracted fewer holidaymakers in June, the island's main tourism promotion authority said Friday, blaming the drop in the number of visitors on the country's ongoing ethnic conflict.
Arrivals in June fell 9.3 percent to 27,960 from 30,810 reported a year earlier and totalled 224,363 in the first half of 2008, down 0.2 percent from the same period a year earlier, Sri Lanka Tourism said.

The number of visitors from Britain and Germany -- both key markets -- fell five percent each in June to 5,304 and 1,317 respectively over the same period a year earlier.

The number of leisure travellers from neighbouring India declined 28.8 percent in June to 5,664, as against the same period last year.

"It's the conflict that is keeping tourists away. There are frequent bomb attacks and it is natural they would be cautious to travel here," an official from the tourism authority said.

Many countries in the west have cautioned their nationals against travelling to Sri Lanka, where fighting between government troops and Tamil Tiger rebels has escalated since the start of the year.

The rebels, who are fighting for a separate homeland for minority Tamils, have been blamed for a string of bomb attacks in and around the capital, where most of the country's upmarket hotels are situated.

Despite the threat of terrorism, the state-run tourism promotion agency is aiming to attract 600,000 foreign visitors this year, officials said.
Tourism is the fourth biggest revenue generator for Sri Lanka's 27-billion-dollar economy, behind remittances from expatriate workers, clothing and tea exports.

Source: LBO

4 Sri Lankan Civilians Killed In Bus Ambush

At least four civilians were killed and 25 others injured when gunmen ambushed a crowded passenger bus in Sri Lanka’s deep south on Friday, according to army officials.

The incident took place in the southern town of Buttala, 240km south-east of the capital, Colombo, considerably far from the regular struggle regions in the north.

Authorities reported that the still unidentified attackers, hiding by the side of the road, began to fire at the bus as it passed. However, officials believe that the assaulters are members of the Tamil Tiger rebels, who are disputing for an autonomous homeland in Sri Lanka. Rebel spokesman Rasiah Ilanthirayan could not be contacted for comment. The Tamil Tigers have been held responsible for various suicide bombings and other attacks on civilians and are registered as a terror group by the United States, European Union and India.

The Associated Press cited military spokesman Brigadier Udaya Nanayakkara as saying that the bus driver accelerated in order to avoid the attack and stopped only when he was sure to have reached shelter.

The defense ministry reported in a statement that two women and a 12-year-old child were also among the victims murdered in the assault and their dead bodies have been taken to the hospital. A wounded individual died at the hospital because of the critical injuries, raising the number of dead to four, according to the statement.

In January this year, 26 people died in a bomb attack on a bus in the same region of Sri Lanka. Buttala is in a Sinhalese-ruled area, far from the rebels’ monopoly in the north.

Source: enews20

S.Lanka's budget deficit, foreign debts mounting: Treasury

Sri Lanka's overall budget deficit is growing due to increased public investment and foreign debt is mounting, the country's Treasury department said on Friday.

The budget deficit has risen 25.7 percent in the first four months of 2008 compared with last year, the department's mid year fiscal position report said.

"The overall deficit increased to 93.4 billion rupees ($867.4 million) from 74.3 billion rupees due to increased public investments," the treasury said in the report.

The government's external debt totalled $15.3 billion at the end of May, a $180 million increase from end 2007, the report showed, while its total debt rose to 3,328.8 billion rupees by the end of April, up 18.1 percent from a year earlier.

Credit rating agency Standard and Poor's warned Sri Lanka last month it was at risk of a downgrade from its current B+ rating, while Fitch Ratings said it was concerned over Sri Lanka's increasing foreign commercial borrowings.

"The government should curtail its spending," said Chirantha Caldera, a currency dealer at Commercial Bank of Ceylon.

"If your revenue is coming down, and your defence expenditure is escalating, then curtailing spending on capital expenditure like infrastructure should be there," Caldera said, adding the government risked further stoking inflation which was running at an annual 28.2 percent in June.

The government has allocated around 18 percent of its 925.1 billion rupees budget this year to defence spending, after pledging to finally crush Tamil Tiger rebels in a war that has killed more than 70,000 people since 1983.

Sri Lanka has also been struggling to pay high global oil prices, which have hit levels above $145 this month compared with the island's 2008 budget estimate of $85 per barrel.

The central bank this week said the oil price alone would increase the country's trade deficit by $500 million to $4.47 billion this year.

Central Bank Governor Ajith Nivard Cabraal told Reuters on Tuesday that inflation would be no higher than 20 percent at the end of 2008 and stuck with an economic growth forecast of 7 percent. [ID:nCOL98109].

The fiscal report showed revenue increased by 23.5 percent to 210.4 billion rupees, while expenditure rose 24.2 percent to 303.8 billion rupees in the first four months.

Public investment spending increased by 15.1 billion rupees, while current government spending rose by 23.5 percent or 43.6 billion rupees to 229.2 billion rupees.

The treasury said the deficit from its operating activities in the first five months had surged to 23.4 billion rupees ($217.3 million) from last year's 11.62 billion rupees. "The main reason for the deviation was the shortfall of revenue receipts," it said.

Source: reuters

Ready for ceasefire and talks, says LTTE

Facing a concerted military offensive by the Sri Lankan army in its stronghold of Jaffna peninsula, the Liberation Tigers of Tamil Eelam has expressed readiness for ceasefire and peace talks with the island government.

LTTE's political wing chief, V Nadesan, on Thursday said that the group was ready for a ceasefire now, while accusing the Sri Lankan government of 'abrogating' the six-year-long ceasefire, which came to an end early this year.

Nadesan, in a telephonic interview to Times Now television channel, said the LTTE was not against peace negotiations.
'Yes' was his answer when asked whether the LTTE was for the ceasefire starting again.

'It is the Sri Lankan State that unilaterally abrogated the ceasefire agreement and is unleashing a war against the Tamils in their homeland,' he charged.

'We are not against ceasefire or peace talks,' he said.

Asked about the petition filed by Nalini, sentenced to life in the Rajiv Gandhi Assassination case, seeking premature release, Nadesan said the LTTE believed that holistic changes will take place and the Indian government 'will recognise the legitimate aspirations of Tamil people and their freedom struggle. And Nalini's release will start the holistic change'.

He also termed Priyanka Vadhra's visit to the Vellore prison to meet Nalini a few months ago as a 'humanitarian gesture'. LTTE, which was indicted in the Rajiv Gandhi assassination, continues to be banned in India.

Nadesan's interview came as the Sri Lankan military chief LT Gen Sarath Fonseka claimed on June 30 that LTTE had lost capability to fight as a conventional force and its cadre strength had dropped to 5000 from 8000 in August 2006.

Nadesan said weakening of the Eelam movement will 'definitely undermine' Indian interest in the region, paving way for anti-Indian forces to gain a stronghold.

Referring to reports of Indian military aiding the Lankan armed forces, he said the Indian government had 'wrongly identified the partner'.

'It (Sri Lanka government) has always been working against Indian interest in the area (region); once again the (Sri Lankan) government is going to cheat the Indian government,' he said.

About support from some political leaders in Tamil Nadu, he said their backing was a 'support to their brothers and sisters in Tamil Eelam to achieve their legitimate aspirations and freedom'.

On the recent escalation of 'war' in Sri Lanka and LTTE's strategy to face it, he said: 'We always use various military strategies according to the political and military conditions on the ground. Tamil people are giving full support to our struggle. We are confident we can pass any obstacle in the freedom struggle with the help of our people.'

He denied that his outfit suffered huge losses due to the escalation and its morale was at the lowest ebb.

He also brushed aside claims by the Sri Lankan Army that LTTE leader V Prabhakaran would be captured alive soon and said 'our leader is carrying on his work'.

Source: rediff

Lanka govt scraps controversial TV deal

The controversial multi-million dollar deal signed with TEN Sports rpt TEN Sports for telecast rights of the cricket matches in the island country by the previous Sri Lanka Cricket (SLC) interim committee has been scrapped by the government.
"I have instructed SLC to cancel the television contract last evening after receiving the finding of a special three-member committee," Sri Lankan Sports Minister Gamini Lokuge told PTI today.

The investigation committee was headed by the Secretary to the Ministry of Sports and Public Recreation S Liyanagama.

The decision terminates the deal involving two new agreements signed for providing TV rights for home matches from 2009 to 2012.

The current agreement with Taj Entertainment Network (TEN) would expire by the end of this year.

"The deal for the next three years has been cancelled and the previous agreement that lapses this year end will stand," Lokuge said adding the new agreements had been entered into without a mandate.

An independent committee was appointed by Lokuge to conduct a detailed inquiry to find out whether the previous SLC interim committee, headed by Jayantha Dharmadasa, had entered the deal without legal authority.

The Review Committee was asked to probe circumstances in which the controversial agreements were signed.

According to the SLC officials the decision to cancel the decision would be informed to Taj Television after which fresh bids will be invited.

Taj will, however, be entitled to participate in any tender that would be floated by the SLC for future TV rights.

Source: PTI

WNS acquires Aviva BPO for $230 mn

Warburg Pincus-controlled WNS Holdings on Tuesday acquired Aviva Global Services, the UK-based insurance giant’s captive BPO in India and Sri Lanka, for $230 million. WNS has beaten Aviva’s other vendors EXL and 24/7 Customer to clinch the deal.

The deal will also see WNS securing Aviva’s committed $1 billion outsourced work over an eight-year period. ET, in its edition dated June 2, had first reported on the impending transaction. WNS is expected to inform the US Securities Exchange Commission on Thursday.

WNS will fund the buyout through a $200 million line of credit from ICICI Bank, while Warburg, which owns 51% stake, will pump in around $30 million as equity contribution. This is one of the largest buyouts of a foreign captive BPO in India.

The buyout will bring over 6,500 employees of Aviva Global Services spread across Bangalore, Pune, Noida, Chennai and Colombo under the WNS fold.

WNS will be subcontracting part of the $1 billion deal with the other two vendors — EXL and 24/7 Customer. WNS, with a revenue of $459 million, has been aggressively looking at inorganic options to shore up its topline.

Meanwhile, 24/7 Customer has announced the transfer of 750 employees from its Aviva 24/7 centre in Chennai to Aviva Global Services as part of its “Build Operate Transfer” (BOT) contract. This is the second BOT contract that 24/7 Customer is executing for Aviva.

The first transfer was at the Bangalore facility, where 1,600 employees were transferred in January 2007. The Chennai centre has 750 employees servicing the Life and Motor insurance businesses of Aviva providing customer service, sales and finance and accounting operations.

Aviva had put its captive BPO operations in India and Sri Lanka on the block quite some time back. The bidding is also believed to have attracted the interest of global giants like Capgemini though this could not be confirmed independently.

Today’s deal also marks the first successful sale of a large BPO captive amidst raging debate on the long-term viability of captive units in view of escalating costs.

Source: indiatimes