Business - Page 2

Bangladesh withdraws duty on sugar import to stabilize local market

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Bangladesh’s National Board of Revenue (NBR) on Sunday withdrew import duty on both raw and refined sugar in order to enable consumers to get the sweetener at lower prices.

In a notification, NBR withdrew a 3,000 taka (about 28 U.S. dollars) specific duty on the import of raw sugar and 6,000 taka duty on refined sugar per tonne with immediate effect.

Apart from this, the NBR reduced the regulatory duty on the import of sugar to 25 percent from 30 percent.

The reduced import benefit, which reportedly comes following a proposal from the commerce ministry to bring down the prices of sugar from its current record level of up to 120 takas per kilogram, will remain effective until May 30 this year.

The overall import cost of raw and refined sugar is expected to decline by 6,500 takas and 9,000 takas per tonne respectively following the fresh duty waver and reduction measures, according to an estimate by the NBR. (1 U.S. dollar equals about 106 takas)

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Myanmar’s maritime trade up 19.42 pct in over 10 months

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Myanmar’s seaborne trade surged 19.42 percent year on year to about 22.24 billion U.S. dollars in over 10 months of the 2022-23 fiscal year beginning in April last year, official data showed on Saturday.

From April 1 last year to Feb. 10 this year, the country’s maritime export rose 10.21 percent to over 9.22 billion dollars from a year earlier, while maritime import climbed 26.94 percent to over 13.01 billion dollars, data from the country’s Ministry of Commerce showed.

During the period, the country saw a total foreign trade value of over 29.33 billion dollars, including its border trade value of more than 7.09 billion dollars, the ministry’s figures showed.

The Southeast Asian country usually does most of its foreign trade through sea routes as it has a long coastline. It conducts border trade with China, Thailand, Bangladesh and India.

The country exports agricultural products, animal products, fisheries, minerals and forest products, manufacturing goods and others, while it imports capital goods, intermediate goods and consumer goods.

YANGON, Feb. 21 (Xinhua)

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Sri Lanka: Why not tax the informal rich rather than the formal poor?

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While levying an income tax on individual earnings to supplement government revenue is a necessity to meet government expenditure, the issue in question is the perception and/or the reality of its unfairness and the lack of confidence and trust that people have about the way the tax they pay is spent by the government. There is no evidence that just and equitable approaches have been taken by politicians to address revenue raising and the curtailment of unaffordable expenditure in a systematic manner.

On the question of unfairness, many are of the opinion that there are a significant number of individuals who operate in a cash economy, with black and/or white cash, who either do not pay any tax or pay a minuscule amount by declaring an income far less than their real income. Big guns in this group are said to include some specialist doctors, architects, engineers, lawyers, customs officials, tuition teachers, and officials of the department of motor traffic among others. A report of a specialist doctor who charges a huge amount of money in cash per patient for a procedure that takes less than 15 minutes underscores the massive earnings of some and the underreporting of income by professionals and government officials, the latter category obviously making their money via bribes, depriving the government of much-needed revenue. There is anecdotal evidence of properties and luxury motor vehicles purchased for large sums of money, and extravagant expenditures incurred for weddings and other functions by individuals who apparently pay for these with cash.

On the same side of the coin of lost revenue, but on the corporate side, the Morning newspaper reported on the 13th of February that the government lost Rs. 560 mn in revenue due to tax concessions for listed companies in 2021/22.

Imesh Ranasinghe writing in the Morning stated that “the Government of Sri Lanka missed out on Rs. 560 million in corporate income tax in the financial year 2021/22 from 13 companies that enjoyed a 50% tax concession for being listed on the Colombo Stock Exchange (CSE) in 2021, financial statements of the listed companies revealed. As per the financial statements of the said 13 companies to which the concessions were granted for being listed on the CSE between May-December 2021, First Capital Treasuries PLC and Capital Alliance PLC recorded losses for the financial year 2021/22, while Lanka Credit and Business Finance PLC LOLC General Insurance paid deferred taxation charges. Some of the major companies that enjoyed higher taxation benefits include LOLC General Insurance PLC, which had earned a profit before tax (PBT) of Rs. 1.2 billion and had only paid Rs. 170.6 million under the concessionary tax rate after paying Rs. 413.5 million as taxes in 2022. Prime Land Residencies PLC had made a PBT of Rs. 1.8 billion and had paid Rs. 162 million as taxes from Rs. 289 million in 2020 and Cooperative Insurance PLC paid Rs. 97 million as corporate income tax from a PBT of Rs. 933 million after paying Rs. 260 million as taxes in 2020”. 

This example of loss of tax revenue from 13 companies may be the tip of the iceberg as there could be other companies, smaller and bigger, who have paid less tax although their revenue was higher and their profit before tax was higher, and companies which are unlisted who may have not paid or paid fewer taxes although their revenues and profit before tax were higher than previous years.

In the context of the individual and corporate situations noted, increasing income tax from those at the bottom end of the income/revenue scale cannot be regarded as a fair proposition. As per the International Monetary Fund, Government Finance Statistics Yearbook and data files, and World Bank and OECD GDP estimates, the tax revenue in Sri Lanka had dropped to 7.7% of GDP in 2020 from 19% in the 1990as illustrated in the graph below. The revenue in 2022 was reported at 7.6 % of GDP in Sep 2022. As the graph depicts revenue has been steadily declining since 1990

Economynext in an article state that quote “Sri Lanka has aimed at increasing tax revenue by 69 percent to fund government spending in the crisis-hit economy, but analysts say the 2023 budget failed to address core issues on excess spending and articulate strong policies on restructuring loss-making state-owned enterprises (SOEs). The budget has aimed at increasing tax revenue by 69 percent to 3,130 billion rupees next year from this year’s 1,852 billion rupees while bringing down the budget deficit to 7.9 percent in 2023 from this year’s revised 9.8 percent. The high tax revenue target comes as millions of Sri Lankans face the impacts of the ongoing economic crisis – 66 percent inflation, job losses, and shrinking disposable income, unquote.

These factors portend even more of a difficult period in the coming years as no one appears willing and/or able to take the difficult decisions that must be taken to yield an effective course correction that will take the country out of the economic mess it is in. However, the pain of such decisions cannot fall unjustly on ordinary people who are already in great pain, while some segments of society enjoy a largesse that is both embarrassing and unkind to those who are struggling to find their next meal.

The following table on tax revenue estimate and collection by tax type (2019) published in lankastatistics gives an insight into the contribution to tax revenue from different categories. As can be seen, value-added tax and income tax comprise nearly 90% of the tax estimated and collected.

 The value-added tax also contributes to the unfairness of tax because of its regressive nature. The Tax Policy Centre, is a joint venture of the Urban Institute and Brookings Institution made up of nationally recognized experts in tax, budget, and social policy who have served at the highest levels of government.

A briefing book, states, “because lower-income households spend a greater share of their income on consumption than higher-income households do, the burden of a VAT is regressive when measured as a share of current income: the tax burden as a share of income is highest for low-income households and falls sharply as household income rises. Because income saved today is generally spent in the future, the burden of a VAT is more proportional to income when measured as a share of income over a lifetime. Even by a lifetime income measure, however, the burden of the VAT as a share of income is lower for high-income households than for other households. A VAT (like any consumption tax) does not tax the returns (such as dividends and capital gains) from new capital investment, and income from capital makes up a larger portion of the total income of high-income households”.

If Sri Lanka is serious about an equitable and fair tax system, it needs a complete overhaul of the system and not patchwork changes at the behest of external agencies. The morally and politically bankrupt politicians and special interest groups may not wish for such an overhaul and the country would continue its debilitating slide into further trouble despite the best efforts of a few.

Firstly, if as suspected, a significant number of high earners are either not paying their fair share of income tax or not paying any income tax, that loophole needs to be fixed. There are measures that could be considered. The idea of levying a tax at the source could be considered for professionals who deal in cash payments. For example, unless a law exists, a new law could be brought in to make it compulsory that doctors see patients only in hospitals or certified medical or home practices, and that ALL cash or credit card transactions are recorded as auditable, legal documents. If patients are seen or treated at a hospital or a similar medical institution, the attending doctor SHOULD be paid by the institution and no direct patient transactions should be permitted. The hospital in these instances could be compelled by law to deduct a percentage of the doctor’s fee as a tax, with the doctor permitted to disclose this payment in their annual tax returns. A similar methodology could be adopted with some variations to other high earners by way of a registration process where and all such registered individuals are required to submit periodic returns to the Inland Revenue department.

Government officials who become high earners through bribe taking will be harder to rope in although in their case as well as in the case of professionals, strict asset tests conducted by the tax office, and also bank disclosures on ALL cash deposits over a given amount, plus a tax levy imposed when deposits are made, for deposits over a given value, could be some of the plugs that can be used to close loopholes. 

In all cases it is vital that penalties for violating existing and new tax laws are very stringent and they include jail terms and confiscation of assets including any unlawfully held cash assets in the name of the individuals. As suspected, if such assets are written in the name of relatives or friends of the individuals concerned, such persons should be called upon to explain and justify how they managed to acquire such assets.

Secondly, value added taxes needs to be revised and redress given to individuals when they purchase essentials. Instead, a tax overhaul could investigate increasing value added taxes for functions held in hotels and function halls. It is no secret that vast sums of money are spent on these functions. Many such spending is unconscionable and an affront to the hundreds and thousands of ordinary people who do not have money for their basic, routine meals. However, rather than focusing on the morals and ethics of such high spenders, as that would be more or less water off duck’s backs, charging a high value added tax would at least allow the government to support the most vulnerable with such funds. To the best of the writer’s knowledge, no surveys have been carried out to ascertain the revenue to hotels and function centres from such functions.

The tax office could undertake such a survey to ascertain the current and potential value added tax collection from such venues.A tax overhaul should naturally include corporate taxation and a re look at concessions provided and how a situation reported in the Morning newspaper described earlier could be addressed. CEIC Unlimited states the following

  • Sri Lanka Tax Revenue was reported at 6.562 USD bn in Dec 2021.
  • This is a decrease from the previous figure of 6.566 USD bn for Dec 2020.

The decline in tax revenue is shown in the illustration below. The corporate tax component and individual income tax component is not mentioned here, and this is something that needs to be examined to ascertain the contribution from the corporate sector and if the Morning article is to be taken as perhaps the tip of the iceberg, the potential loss of income tax from the corporate sector.

Clearly, it appears that there are some individuals who earn vast amounts of money but hardly pay reasonable income taxes, corporate earnings and profits are not consistent with taxes paid, there is no assessment of the income of some individuals who purchase high-value properties and other assets and whether they have fulfilled their tax commitments. On the other hand, successive governments seem to have and still are taking the easy way out by taxing wage earners.

If the country is serious about increasing its revenue base from taxes, it should engage in a complete overhaul of the tax system, strengthen the hand of the tax department by way of suitable legislation and introduce serious punitive measures to punish individuals and corporate entities who firstly do not declare their real income, and secondly who do not pay their fair share of taxes. The VAT system too should be revised in such a way that the most vulnerable are safeguarded from the regressive nature of the VAT system.

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China to replenish 20,000 tonnes of pork reserves to stabilize market

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China’s top economic planner said Friday it would stockpile 20,000 tonnes of frozen pork to replenish state reserves, as an index monitoring pork prices has dropped below the warning level.

The index, the national average of pork prices against grain prices, has fallen below the warning level of 5 to 1, said the National Development and Reform Commission.

According to a work plan for stabilizing the pork market, China has introduced a three-level early-warning system to raise the alarm for excessive ups and downs in hog prices.

The commission said it would work with relevant departments to start this year’s first stockpiling work for state pork reserves and guide local governments to purchase pork.

China pays close attention to price changes in the pork market and will continue to strengthen the regulation of production capacity and price to keep the market stable.

Xinhua 

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Critics and Section of Indian Media Less Than Fair to Adani Group

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In recent days, when Adani group has become the “talk of the country” for whatever reasons, the criticism against Adani group has been mostly levelled by financial researchers, credit rating agencies, economists and a section of politicians. It is conspicuous that the performance and contribution of Adani group to the technological and industrial growth of India has not been highlighted or has been largely ignored by the critics while voicing criticisms.

Spectacular growth:

There is no doubt that the growth of Adani group during the last one or two decades have been spectacular.  Normally, this sort of growth should be admired, particularly when such growth has happened in industrial and infrastructure sectors and not by mere money manipulation or playing in share market.

One would be fairer in discussing about the Adani group if it would be realized that such growth has happened due to bold and heavy investment in the economically vital and much-needed growth-oriented sector such as solar energy, mining, port development, airport management, power transmission, road construction etc. Obviously, Adani growth has happened in tune with the growth in sectors, where Adani has invested. 

Infrastructure projects – A calculated risk:

It is well known that ventures in infrastructure projects have certain elements of risk in view of the high investment involved, possibility of cost escalation, long gestation period, low margin and possible shifting of government priorities and policies from time to time with regard to development plans. In such circumstances, there are not many project promoters who would like to dip their hands in infrastructure projects. Until recent years, with the private sector largely hesitant to invest in infrastructure projects, governments have to invest and manage such projects.

In recent years, with the development of concept that the government is to govern and not to do business, the governments have been looking up to private sector to venture into infrastructure projects and government policies have been redesigned accordingly.

In such a scenario,    Adani group has entered into ventures in infrastructure projects with rare courage of conviction and certain level of responsibility to contribute to the national development programme.

 It is sad that due credit has not been given to Adani group by critics for such proactive and dynamic approach.

Wherever Adani group has been given contracts by the government for such projects, Adani group has participated in the tender in the competitive bidding process and have won the bids.  These are all transparent activities.

Fund management:

Given the nature of the infrastructure projects, large finances are required and Adani group has preferred debt to rise these finances, with free-floating shares of its listed companies that are available for trading and trading being a small proportion of the total.

The critics allege that Adani group floated shell companies, claiming to be independent, to part finance in tax havens abroad that was then used to acquire the shares of Adani firms. The critics call it as share manipulation.

One of the so-called tax havens mentioned was Mauritius. However, Mauritius government has now clearly said that it has reviewed the allegations made by US-based short seller against the Adani group and has not found any breach of regulations in the country by Adani group.

While allegations have been made, nothing has really been proved, even while Adani group has strongly denied all the allegations.

What is happening here is that Adani is facing media trial and the US-based short seller must have been laughing up its sleeve that its’ vague allegations have become such a huge topic for national debate in India.

Government support:

Another allegation is that the Government of India has been supporting Adani group.

Per se, there is nothing wrong or unusual in this, as the task of the government is to support investors in industrial promotional activities.

When Tata group has placed an order for Airbus from France and Boeing from USA, the Presidents of France and US expressed their happiness.  This is as it should be, as leaders of the government must involve themselves in promoting projects and supporting project promoters from their country. This should be so in India also and Government of India supporting an industrial group from India is certainly appropriate. Certainly, every industrial group in India do expect such support, which Government of India is extending.

So long as Adani group has functioned within the framework of laws and whatever methods adopted by it to raise finance are as per the terms of law, Adani group need to be recognized for its positive contribution, instead of mudslinging.

Strong fundamentals:

Those who have been observing the performance of Adani group on the ground would tend to agree with the claims of the Adani group that it’s fundamental strength lies in mega-scale infrastructure projects, execution capabilities, organisational development and O&M management, which are of global standard. The institutions who have invested in Adani group or extended loans do not seem to be worried and this is more than clear from the fact that the Rs.20000 crore FPO was fully subscribed on the due date.

The only people who seem to be “worried” are the critics and section of media and politicians, who are not the stake holders. They are only observers.

The role of Watchdogs and laws in India:

Unfortunately, SEBI, the watchdog in India, has been vague in putting forth it’s comments on Adani episode, which has created media speculation.  Many have developed suspicion as to whether   SEBI has discharged it’s responsibilities as a watchdog adequately well.

Obviously, one gets an impression that India’s framework of laws is not adequate for SEBI to act as a true watchdog.

If India had such well planned and adequate framework, a regulator like SEBI could have given it’s verdict within a few days to debunk the report, India as a country is unable to do so because Indian laws are archaic and enforcement mechanisms too slow.

In any other country, Adani could have taken such short sellers to court and sued them for damages. Adani is unable to do that because of the problems of the Indian legal system.

Supreme Court of India thought it fit to entertain a case about the Adani episode created by US based agency, which is surprising and create confusion about laws and regulations in India and jurisdiction of court in such matters.

However, India has an opportunity to strengthen our governance and enforcement framework so as to ensure such strong players remain strong and more emerge.

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Sri Lanka: IMF’s new Jamaica?

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by Our Economic Affairs Correspondent

“The IMF’s emphasis on fiscal austerity has proven to be misguided and has resulted in economic stagnation, high levels of unemployment, and increased poverty in many countries.” – Noam Chomsky

Sri Lanka is eagerly anticipating change. Sri Lankans are tired of being robbed by many parties, be the local or foreign. Recently, politicians who were on the run have been now secured their safe houses, while innocent people are being targeted with usual measures. This has been attributed to the International Monetary Fund (IMF), a well-known international financial institution that relies on the support of others. Even those in rural areas who previously showed little interest in the IMF are now discussing its role in the country.

However, the IMF is not a charity, and it is not expected to resolve Sri Lanka’s crisis. Instead, it will provide guidance similar to an accountant overseeing the accounts of a struggling company. Unfortunately, neither the IMF nor the power-hungry politicians in Sri Lanka seem to genuinely care about the country’s crisis. We must thank Gotabaya Rajapaksa for unmasking, knowingly or unknowingly, the issues that Sri Lanka faces, and for forcing Sri Lankans to acknowledge the country’s state. If the IMF is honest in its efforts, it should explain why their interventions failed the last 16 times Sri Lanka sought assistance. Could Sri Lanka become the next Jamaica, with the IMF taking control? We must take a closer look.

No doubt, the International Monetary Fund (IMF) has been a key player in the global economy since its creation in 1944. The IMF provides loans and technical assistance to countries facing economic challenges, with the goal of promoting economic stability and growth. However, there are many examples of IMF policies and loan conditions that have had negative consequences for the countries they were intended to help. One of these examples is Jamaica, where IMF policies have been blamed for exacerbating economic inequality and hindering long-term development.

Jamaica is a small island nation in the Caribbean, with a population of just under three million people. Like many other countries in the region, Jamaica has faced significant economic challenges over the years, including high levels of debt, inflation, and unemployment. The country has received multiple loans from the IMF over the past few decades, with the most recent loan approved in 2016. However, many Jamaicans feel that IMF policies have only made their economic situation worse.

One of the key criticisms of IMF policies in Jamaica is the focus on austerity measures, which often require the country to reduce public spending and increase taxes. These measures have been particularly harmful to the poorest sections of the population, who are most vulnerable to economic shocks. In Jamaica, the government has implemented a series of austerity measures over the years, including cutting social spending and increasing taxes on essential goods such as electricity and fuel. These measures have contributed to an increase in poverty and social inequality, as well as undermining the country’s long-term development prospects.

Another criticism of IMF policies in Jamaica is the focus on privatization and liberalization. These policies have led to the sale of state-owned assets, such as utilities and transportation, to private investors. While these policies may lead to short-term gains, they can have negative consequences in the long run. For example, privatization can lead to higher prices for essential services, as private companies seek to maximize their profits. This can further exacerbate the economic challenges faced by the poorest sections of the population, who may not be able to afford these higher prices.

In addition to these specific policies, some critics argue that the overall approach of the IMF is too focused on short-term fixes and not enough on long-term development. IMF loans often come with rigorous conditions that require the borrowing country to implement specific policies or undertake specific reforms, but these conditions may not address the underlying structural issues that have contributed to the country’s economic challenges. This focus on short-term fixes can make it difficult for countries like Jamaica to build a sustainable and resilient economy that benefits all its citizens.

Well, Jamaica is not alone. There are several other examples of countries where IMF policies have been criticized for their negative impact on the economy and society.

If the IMF fails in Sri Lanka, it will be just a case study for them, but it is the fate of more than 22 million people. Who will take note of this seriously when those in power are playing modern-day Nero?

One such example is Argentina, which has a long history of economic instability and has been a frequent borrower from the IMF. In 2018, Argentina received a $57 billion loan from the IMF, the largest loan in the organization’s history. However, the loan came with strict conditions, including austerity measures and cuts to social spending. Critics argued that these policies exacerbated economic inequality and contributed to a deepening recession in the country. Consequently, according to Xinhua, “Argentina recorded 98.8 percent year-on-year inflation in January, after starting the year with a monthly price increase of 6 percent, the National Institute of Statistics and Censuses (INDEC) reported Tuesday, 14 February 2023.”

Another example is Greece, which received multiple loans from the IMF and other international lenders during the debt crisis that began in 2009. These loans came with conditions that required the Greek government to implement austerity measures and structural reforms. However, these policies were deeply unpopular with the Greek people and contributed to social unrest and political instability in the country. Many argue that the IMF’s focus on austerity measures delayed Greece’s economic recovery and hindered its long-term development.

A third example is Zambia, which has received multiple loans from the IMF over the past few decades. Critics argue that the conditions attached to these loans, which often require the government to reduce public spending and increase taxes, have contributed to social inequality and undermined the country’s long-term development prospects. For example, the IMF’s requirement for Zambia to reduce public spending on healthcare led to a decrease in the availability of essential medicines and equipment, making it harder for people to access healthcare services.

These examples illustrate the complex and often controversial role that the IMF plays in the global economy. While the organization’s loans and technical assistance can be helpful in promoting economic stability and growth, there are concerns about the impact of its policies on the poorest sections of society and on long-term development prospects. As such, it is important for the IMF to take a more comprehensive and long-term approach to its lending policies, one that prioritizes sustainable and inclusive development over short-term fixes.

True, it is difficult to predict whether Sri Lanka will become another Jamaica, Greece, or Argentina, but there are certainly concerns about the impact of IMF policies on the country’s long-term economic and social development. Sri Lanka has received loans from the IMF 16 times in the past and is currently negotiating its 17th bailout, with the aim of addressing the country’s ongoing economic challenges, including high levels of debt, inflation, and unemployment.

To avoid the negative consequences of IMF policies seen in other countries, Sri Lanka could consider adopting some of the recommendations put forward by top economists and experts in the field of development economics. One key recommendation is to focus on sustainable and inclusive economic development, rather than short-term fixes and austerity measures. This could involve investing in infrastructure, education, and other long-term development initiatives, with a focus on creating jobs and promoting economic growth in a way that benefits all citizens.

Another recommendation is to address the underlying structural issues that have contributed to the country’s economic challenges, such as corruption, inefficiency, and poor governance. This could involve implementing reforms to improve the business environment, increase transparency, and reduce bureaucracy, which could help to attract investment and create a more vibrant and dynamic economy.

In addition, Sri Lanka could explore alternative sources of funding and technical assistance, such as regional development banks or partnerships with other countries. These alternatives may offer more flexibility and a more nuanced approach to development challenges, which could better address the specific needs and priorities of the country.

Overall, Sri Lanka has a challenging road ahead as it seeks to address its economic challenges and promote sustainable development. To avoid the negative consequences of IMF policies seen in other countries, it will be important for Sri Lanka to take a comprehensive and long-term approach to economic development, one that prioritizes the needs and interests of all its citizens.

Sri Lanka, a beautiful island nation in South Asia, has been facing severe economic challenges for decades. Despite multiple interventions by the International Monetary Fund (IMF), the country’s economic crisis has not been resolved. In fact, Sri Lanka is currently seeking its 17th loan from the IMF, but there are doubts about the effectiveness of this latest effort to address the country’s economic woes. Why Sri Lanka has not been able to solve its economic crisis, and why the ongoing 17th IMF loan may lead to social turmoil without producing a lasting solution?

Sri Lanka’s economic challenges can be traced back to the country’s long-standing civil war, which lasted for nearly 30 years and ended in 2009. The conflict caused significant economic damage, and the country’s post-war economic recovery was slow. Moreover, the country’s high levels of public spending, corruption, and lack of investment in key sectors such as infrastructure have contributed to a sustained economic crisis. These challenges have been compounded by the COVID-19 pandemic, which has further weakened the country’s economy.

The IMF has been a key partner of Sri Lanka in its efforts to address its economic challenges. The IMF has provided loans to Sri Lanka for 16 times in the past. However, despite these efforts, the country’s economic situation has not improved significantly. There are several reasons why the IMF’s interventions have not been successful in addressing Sri Lanka’s economic crisis.

First, the IMF’s loan programs often require the borrowing country to implement strict austerity measures, such as reducing public spending and increasing taxes. These measures can have a significant impact on the poorest sections of the population, who are often the most vulnerable to economic shocks. In Sri Lanka, the government has been reluctant to implement these measures, fearing the political backlash that could result from public protests and unrest.

Second, the IMF’s loan programs are typically focused on addressing short-term economic challenges, such as balancing the budget or reducing inflation. These measures may not address the underlying structural issues that have contributed to Sri Lanka’s economic crisis, such as corruption, weak institutions, and lack of investment in key sectors. Without addressing these structural issues, any short-term gains achieved through IMF programs are unlikely to be sustainable.

Third, the IMF’s loans often come with conditions that require the borrowing country to undertake significant economic reforms, such as liberalizing the economy or privatizing state-owned enterprises. These reforms can be politically challenging and may not be implemented effectively if there is insufficient political will or capacity to do so.

Given these challenges, the ongoing 17th loan from the IMF may not produce a lasting solution to Sri Lanka’s economic crisis. The loan program is expected to include conditions that require the government to undertake significant economic reforms, including reducing public spending and increasing taxes. These measures are likely to be politically unpopular, and the government may face significant public protests and unrest if it attempts to implement them.

Sri Lanka’s economic crisis is a complex and multifaceted challenge that requires a long-term, sustainable solution. While the IMF has been a key partner in Sri Lanka’s efforts to address its economic challenges, the organization’s loan programs may not be sufficient to address the country’s underlying structural issues. Without addressing these underlying issues, any short-term gains achieved through IMF programs are unlikely to be sustainable.  

Sri Lanka needs a comprehensive, long-term strategy that addresses its underlying economic and social challenges, including corruption, weak institutions, and lack of investment in key sectors. The government must prioritize addressing these structural issues and work towards building a more resilient and sustainable economy that benefits all Sri Lankans.

While the IMF can be a valuable partner in this effort, the government must take a leadership role in driving the necessary reforms and ensuring that they are implemented effectively. Without a sustained and comprehensive effort to address its economic challenges, Sri Lanka’s economic crisis is likely to persist, causing further harm to its people and undermining its long-term stability and development. Consequently, no wonder if Sri Lanka becomes the IMF’s new Jamaica.  

Nothing better than take the sage words of a well-known economist, Joseph Stiglitz, “the IMF has a history of imposing harsh economic policies on developing countries, which often lead to social and economic turmoil, and are designed to favour the interests of wealthy creditor nations and international corporations over those of debtor countries.” If the IMF fails in Sri Lanka, it will be just a case study for them, but it is the fate of more than 22 million people. Who will take note of this seriously when those in power are playing modern-day Nero? Real Nero never did that, but in our time Neros, certainly will. 

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Sri Lanka: Governor disregards trade mis-invoicing

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Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe has disregarded and trivialised the extent of illicit financial flows through trade mis-invoicing in instigating Sri Lanka’s ongoing foreign exchange and fiscal crisis. This was fully apparent at the Parliamentary Committee on Public Finance meeting on January 23rd in response to revelations made by us as a collective of Sri Lanka’s prominent trade unions, mass organisations, professionals and economists.

In response to questions raised by Parliamentarians on our statement at the Committee meeting, the CBSL Governor responded,

“Obviously people who do under-invoicing or over-invoicing happens basically to evade taxes. If you have taxation, you declare low value and pay low taxes and then they keep money. probably they keep it out or bring it here. That’s their business. We don’t know.”

The Governor of the country’s Central Bank continued to rationalise or mis-rationalise his admitted ignorance by speaking in a language which is alien to economists, saying, 

“Other thing is, I don’t believe this number. Reason is if exporters are doing business here, they can’t keep that amount of money abroad.”

After hearing this, we as citizens are concerned whether the operations of the CBSL are in fact moving forward on the erroneous personal beliefs of the CBSL Governorat this time of deep economic crisis. Since the CBSL Governor ‘does not know’, we as trade unions, civil society organisations, economists and concerned professionals find the need to enlighten him, CBSL Officials and all concerned citizens the extent and dynamics of trade mis-invoicing in accelerating Sri Lanka’s economic collapse. In the following account we will critically address the misleading remarks of CBSL Governor on capital outflows through trade mis-invoicing.

International Recognition that Trade Mis-invoicingis Not a Myth

The CBSL Governor dismissed the findings of Global Financial Integrity (GFI) report published in December 2021 which pointed out that an estimated US$ 40 billion was transferred out of the economy between 2009-2018 through fraudulent invoicing by corporates operating in the import-export sector. This figure significantly exceeds Sri Lanka’s foreign debt of US$ 36 billion in default since April 2022. The impact of capital outflow of this magnitude on the ongoing economic collapse is self-explanatory. Nevertheless, the CBSL Governor is of the view that corporates would not have sufficient funds to operate within the economy if such a large sum of capital is held outside the country. Consequently, he falsely concludes that the GFI estimates are extreme exaggerations. This amounts to a complete misunderstanding of illicit outflows globally. If not, it indicates that the CBSL’s Governor and officials are colluding with business interests and the political establishment to trivialise and dismiss what appears to be the largest financial crime in Sri Lankan history.

These outflows are surpluses from both legal and illegal operations and therefore are not reutilised in domestic operations and in the interest of expanding industries locally. Economists such as Professor Arun Kumar at Jawaharlal Nehru University, New Delhi, have pointed out that the illegal outflow of capital is used to acquire property abroad or in conspicuous luxury consumption. In other words, illicit financial outflows enable the extravagant enrichment of individuals at the expense of entire countries in the third world.

However illicit financial flows are a common occurrence in countries which have poor financial controls. For instance, theUN referring to the GFI report published in 2014 recognised that illicit financial flows from the African continent through trade mis-invoicing from 1970 to 2009 is a staggering four times the aggregate foreign debt of the region.Furthermore, the UN Conference on Trade and Development (UNCTAD) in September 2020 revealed that an estimated US$ 88.6 billion leaves the African continent as illicit capital flight yearly and the aggregate outflows between 2000-2015 (US$ 836 billion) is far greater than total foreign borrowings of the continent (US$ 770 billion).

The ground-breaking findings of GFI and their collective work with the UN, the World Bank and the IMF advocated including illicit financial flows in the UN’s Sustainable Development Goals in 2015 under goal 16.4 to which Sri Lanka is also a signatory. As early as September 2018, Mr. Juan Pablo Bohoslavsky, the UN’s Independent Expert on Foreign Debt and Human Rights for 2014-2020 stated following his visit to Sri Lanka that “no study or official estimation of illicit outflows or inflows has been conducted to date in Sri Lanka”. In his report, he urged the Government “to conduct these studies in order to further curb illicit financial flows in line with the Sustainable Development Goals.”

Further, the Asian Development Bank (ADB) in 2003 emphasized that “inaccurate pricing (“misinvoicing”) of imports or exports [is used] to hide the transfer of funds. When such transactions are extensive, the impact on a country’s entire external sector can be substantial” (ADB,Manual on Countering Money Laundering, 2003). In 2017, the ADB further estimated that trade mis-invoicing accounts for a staggering 83% of all illicit capital outflows from developing countries. The recent statement endorsed by 182 globally renowned economists, academics and activists demanding cancellation of Sri Lanka’s foreign debt also highlighted that capital outflows during the past 15 years is estimated to be greater than Sri Lanka’s total outstanding foreign debt.

There is thus a vast body of research conducted by institutions such as the ADB, IMF, World Bank, OHCHR, UNCTAD and international economists on what happens to national economic development when rampant corruption is allowed through illicit financial flows. It is therefore hugely concerning that our CBSL Governor ‘does not believe’ and does not seem to be aware of the impact illicit financial flows through trade mis-invoicing have hadon the Sri Lankan debt crisis. Ultimately, it is a tragedy that Sri Lanka’s foremost authority on economic affairs is completely oblivious to chronic issues engulfing the developing world and the root causes of the fiscal crises we face. Alternatively, if this is not ignorance or misunderstanding, then it points to deliberate collusion by the CBSL’s Governor and his officials with business interests and the political establishment to trivialise and dismiss what are massive financial crimes.

Government Enabling of Illicit Capital Flows

We are well aware that the Sri Lankan Government ‘legally’ permitted companies to park income outside the country for years and that this economic hara-kiri was only addressed in October 2021 through a regulation under the Monetary Law Act. It is our interest as citizens to know the full impact of this disastrous blunder. We demand that the CBSL publicise the amount of residual income that the export sector failed to repatriate between the period October 2021 to date, thereby aggravating the economic crisis. We further request institutions such as the CBSL to be responsible and reflect on the implications of the ‘legality’ of enabling local companies to take capital on a developing economy like ours’ in the long run. We are glad to note that the CBSL Governor is aware of other developing countries such as India and Malaysia which have placed restrictions on financial flows as part of a policy framework to accelerate their development with the capital produced in their own countries.

CBSL Governor passing the buck to Customs

In a separate press conference on January 26th,Dr. Nandalal Weerasinghestated it is the responsibility of the public to inform the Financial Investigative Unit (FIU) of CBSL and Customs Department if they have conclusive evidence of firms involved in fraudulent trade invoicing.It is only then he claimed that the FIU of CBSL and Customs Department can take appropriate legal measures against the perpetrators. He further stated it is the responsibility of Customs Department to address mis-invoicing and not of the CBSL. These assertions indicate the reluctance of CBSL to recognise and investigate illicit outflows. It is shocking to hear from the Governor that it is the general public who should provide information or advise CBSL on highly technical matters like illicit capital transfers when the CBSL employs the greatest number of Ph.D.holders under one institution in Sri Lanka. Furthermore, it is clearly stated throughout the Monetary Law Act, No. 58 of 1949 that the CBSL bears the responsibility and authority to address issues threatening the economic stability and economic wellbeing of the general public. Hence,the CBSL cannot simply abdicate responsibility by passing the mantle to Customs Department and the general public.

Export profits are only a fraction of capital transfers through trade mis-invoicing

During the Parliamentary Committee on Public Finance meeting,the CBSL Governor further claimed that capital flight through trade mis-invoicing is tantamount to shifting profits to an overseas destination for tax avoidance. However, this is a gross understatement of the gravity of the issue. We have shown in our earlier statements that the over-invoicing of imports transfers out foreign exchange received as foreign borrowing and even workers’ remittances. This compounds the foreign debt crisis, leads to chronic shortages of foreign exchange to finance essential imports and a collapse of living conditions. A study based on 39 African countries illustrates that between 1970 and 2010 approximately 63% to 73% of foreign borrowing exited Africa within a five-year window as a result of capital flight through trade mis-invoicing. Further, the IMF in its publications over the years shows that the loss of foreign reserves of Central Banks is accelerated by capital flight through trade mis-invoicing while decreasing tax revenue.It diminishes governments’ debt-servicing capacity and worsens the incidence of balance of payments crises. Capital outflows are a diversion of domestic savings out of the economy and deplete domestic resources, compelling governments to absorb more and more foreign debt to finance domestic investments, and exacerbating debt unsustainability. Needless to say that these observations are clearly applicable to the course of Sri Lankan economy over the past three decades as we have emphasised repeatedly in earlier statements.

“IMF Budget” for the People, Non-IMF Concessions for Corrupt Businessmen

The government is imposing an ‘IMF budget’ on Sri Lanka, making life unbearable to ordinary Sri Lankans, particularly working and poor people. We hope that the CBSL Governor is able to see the ground from the tall towers he occupies and observe how people are not eating any longer because they can’t afford food; have restricted even essential travel for medical and educational purposes; live in the dark because electricity has become a luxury; and have children not going to school because of hunger and costs. His ‘belief’ is costing the lives of millions in Sri Lanka. Hence, we as trade unions, civil society organisations, economists and concerned professionals ask the obvious question – Why has the Government failed to move an inch on the observations and recommendations of institutions such as the IMF on illicit financial outflows? Why is the Government burying its head in sand while their friends, the business elite, loot money out of this country and deny our country of much-needed foreign exchange?

The CBSL should therefore immediately implement a coordinated mechanism integrating itself with commercial banks and the Customs Department to investigate the issue and repatriate illicitly transferred, funds starting from most recent transactions. Instead of speculating on the credibility of GFI and the extent of trade mis-invoicing which are already recognised by international organisations like the UN, World Bank, IMF and ADB, the CBSL should collaborate with GFI and UNCTAD to further clarify the findings on Sri Lanka that emerged from 2021GFI report. In the absence of no such an initiative being even proposed by the CBSL Governor, we can only conclude thatthe CBSL is complying with the criminal corporate-political corruption that has driven the economy to the ground and ordinary Sri Lankans into destitution.

Swasthika Arulingam, President, Commercial and Industrial Workers’ Union, United Federation of Labour

Signed on behalf of: Centre for Community Empowerment,Ceylon Bank Employees’ Union,Ceylon Federation of Labour,Ceylon Teachers’ Union,Dabindu Union,Engineers’ Services Professional Association,Federation of Media Workers’ Trade Union, Institute for People Engagement and Networking, Mass Movement for Social Justice, Movement for the Defence of Democratic Rights,Movement for Land and Agricultural Reform,Movement for Plantation Peoples’ Land Rights, National Collaboration Development Foundation,National Trade Protection Council, North South Solidarity Group, Professionals’ Centre for People,Protect Union, Satahan Media,Rural Development Foundation, Social Institute for Development of Plantation Sector,Sri Lanka All Telecommunication Employees’ Union,Stand Up Workers’ Union,Suriya Shakthi FoundationNuwaraEliya,Textiles Garments and Clothing Workers’ Union,United Fishermen’s and Fish Workers’ Congress,Upcountry Civil Society Collective, UvaShakthi Foundation,Young Lawyers’ Association

SugathKulathunga–Former Senior Advisor at International Trade Centre (WTO/UNCTAD), Former Director General of Sri Lanka Export Development Board and Former Additional Secretary to Ministry of Trade, Prof. (Dr.) M. P.S. Magamage – Former Chairman of National Livestock Development Board,Dr. KalpaRajapaksha – Senior Lecturer in Economics,AmaliWedagedara – Political Economist and PhD Student, DhanushaPathirana– Economist

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Adani’s Calling Off Public Offer: A Big Setback for India’s Green Hydrogen Projects

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All those who are keen that India should successfully set up massive green hydrogen projects to overcome the impending energy crisis are greatly disappointed that Adani group has decided not to go ahead with the fully subscribed  Rs.20,000 crore   Follow On Public Offer.

Using this public offer of Rs.20,000 crore,  Adani group earlier announced that it would spend a substantial amount to set up green hydrogen projects,  which are unlikely to happen now.

Need for green hydrogen energy project

India presently imports around  80% of it’s crude oil requirement amounting to around 250 million tonne per annum,. India is also importing around 50% of India’s requirement of natural gas, which amounts to around 35 billion cubic metres per annum.

Import requirement of crude oil and natural gas is likely to increase at 6 to 7% per annum in the coming years, as domestic production of crude oil and natural gas is likely to remain stagnant in the coming years.

Amongst many plans being implemented by the government of India to reduce the use of fossil fuel and avoid global warming, the promotion of green energy projects in a big way is one of the very important strategies.

The government of India has allotted Rs.35,000 crore for green energy projects in the 2023-24 annual budget.

The government of India is targeting to generate five million tonnes of green hydrogen annually from the year 2030, which is the industry’s total amount of (non-green) hydrogen consumed today.

This shift to green hydrogen would avoid  30  to 40 million tonnes of carbon dioxide emissions per annum and avert import of more than ₹60,000 crore worth of natural gas and crude oil.

Adani group’s proposed plans:

Adani group’s business spans coal trading, mining, FMCG (Adani Wilmar), seaport, solar power manufacturing, airports, roads, data centres, green hydrogen and so on. 

If the proposed public offer would have been accepted by Adani group, about ₹10,800 crores would have been used to fund the capital needs of green hydrogen projects, airports and expressways. 

Green hydrogen project proposal of Adani group covers the green hydrogen ecosystem from scratch.

While a few other green hydrogen projects are in the preliminary stage in India, the green hydrogen project proposal of Adani group is one of the largest.

A big setback for India’s project investment plans:

Private sector investments in projects like what Adani group has announced have to happen in a big way if India is to attain the target of 5 trillion dollar economy in the coming years.

Obviously, to attain this target, many massive projects require huge investment, for which large public issues of several thousand crores of rupees are required. 

If such public issues were to be throttled and sabotaged by vicious and motivated campaigns by some so-called research groups, then,  it would result in big setbacks for India’s future development programmes.

When an industrial group achieves spectacular growth, it is seen that those who cannot match the performance of the fast-growing group view such performance with surprise and disbelief. 

There have been cases and instances, where competitors from India or abroad would try to indirectly launch campaigns against the fast-growing group and support negative campaigns.

There have also been cases where motivated environmental groups have scuttled projects by carrying out hate campaigns and stating unproven environmental violations against particular companies. The immediate example is the closure of Sterlite Copper unit in Tamil Nadu

There have been many instances to show such motivated campaigns across the world for whatever reasons.

These conditions cause setback to India’s plans to achieve big leap forward.

Adani group   – A victim of motivated campaign  in this case:

A vicious campaign   against Adani group   was carried out by a US-based investment research firm known as  Hindenburg Research, stating several  vague  allegations, some unproven violations 

Due to the massive publicity given to such campaigns in Indian media before proper investigation, the gullible investors became panicky.  In such circumstance, the share of Adani group have seen massive losses.

In such extraordinary circumstances, Adani group felt that going ahead with the fully subscribed issue will not be correct,  since the interest of the investors have to be protected.

The net result of the situation is that  India has lost massive investment opportunities in green hydrogen projects.

Further, the motivated American research team and the detractors against India, wherever they may be,   seem to be highly pleased and satisfied.

The entire Adani episode is a case of negative forces winning ,  which is a very unfortunate situation for a growing and developing country like India.

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Flight MH 17 and The Little Dutch Girl – A Personal Reflection

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You are an open wound

And we are standing

In a pool of your blood

Rupi Kaur

25th of January 2023 was significant from a judicial standpoint, but it was a grim reminder of how many lives were stolen in the most violent and egregious way.

The Destruction

One of the worst atrocities in the annals of civil aviation was perpetrated when Flight MH 17 was destroyed over Eastern Ukraine by a ground-based missile. Was Russia to blame? Or was it Ukraine? Or even the airline for flying over dangerous territory?  The aircraft operating the flight was shot down in eastern Ukraine about 60km from the Russian border on 17 July 2014, allegedly by pro-Russia separatists.  All the 298 passengers – 193 of whom were Dutch – are believed to have died, and some of the remains of those who perished were never recovered. It is now revealed that death was not instantaneous.

Everyone seemingly responsible for the heinous act started deflecting blame, and a little girl (and all others on board) on the flight was forgotten, except for her  devastated father who grieved the unbearable loss of his only child. 

From then on, everything became clinical and adjudicatory.

Seven and a half years later, The European Court of Human Rights ruled on 25th January 2023 – on a purely procedural and technical issue –  that complaints against Russia from Ukraine and the Netherlands should go to trial, but it was not about what the little Dutch girl lost. Who would care anymore, anyway?

The European Court of Human rights, in a press release said: “Among other things, the Court found that areas in eastern Ukraine in separatist hands were, from May 11, 2014 and up to at least January 26, 2022, under the jurisdiction of the Russian Federation” , referring to “the presence in eastern Ukraine of Russian military personnel from April 2014 and the large-scale deployment of Russian troops from August 2014 at the latest.”

The Little Dutch Girl

One day in mid July 2014 a young girl –  full of hope for her future and bubbling with the energy of youth – boarded a Malaysian Airlines Boeing 777, in Amsterdam.  She had everything in life to be thankful for  – a university education,  romance and courting, a good life  with a warm home and a family – all  in front of her.  The best was yet to come.  It was time for new life to start with the freshness of hope and all the happiness that her young  heart could take.  Her  penalty for being born was not even in the distant horizon.

Her destination was Kuala Lumpur, and she was looking forward to a lighthearted romp on a fun flight and a glorious holiday with her family who were travelling with her.  

Yet she did not make it.

Every day, people die of accidents caused by their own negligence, or diseases beyond their control. People also die of intentional killing by others. Somewhat rarely, people suffer death through random acts of violence – like the little Dutch girl. For her there was no second chance.  There was no going back to the perfumed meadow of Summer. It was as though an alien sky swallowed her that clear day and the future became an illusion.

There are no answers no good, no evil only a million promises not kept that day when it raised its ugly head.  We can only fill the craters with ashes; level the furrows plant grass, trees, flowers lay white gravel path some rustic benches – a public park and hush the cries of orphaned parents.

But there was no one when darkness fell that night and all the lights went out.  She should have had someone that she could find.  She should not have been alone to weep.

My Reflections

Today, that little girl would have been in her early twenties. What would she be doing? Perhaps reminiscing over her first and only love at university? The first time she saw him and looked down and walked away? How memories of him protecting both under a tiny umbrella when they walked alone in the rain flood her mind? How she forgot to tell him what was on her mind? How she hurt for having forgotten to tell him what was on her mind? How excited she felt when she scored high grades and ran up to tell him? The look on dad’s face when she told him of her grades.

Maybe she would be holding her first born lovingly and tenderly, while her baby peered at her radiant like a pearl in an oyster that had a little door. She would have been overwhelmed with joy as though her whole world had been invigorated by the touch of a butterfly and the splash of a drop of dew. She could have had many days walking through tender meadows of sunshine and warmth amidst the laughter and joy of simple pleasures.

We Failed Her

We did not keep our promises to a little girl who depended on us for her safety We did not have stringent regulations, and Standards to stop that flight.  We knew the area was dangerous,  infested with unscrupulous elements holding  ground-based missiles. Yet we did nothing to prevent the ominous and grave risk that was posed to the flight. We did not have a system of sharing and disseminating threat information in a timely manner. We did not know to whom this information should have been relayed.  We don’t seem to have known what risk avoidance was – that it involved a risk assessment technique that entails eliminating hazards, activities and exposures that place valuable assets at risk.  In the case of civil aviation within the context of conflict zones this would mean eliminating hazards by avoiding the airspace over that zone entirely.  Unlike risk management, which is calculated to control dangers and risks, risk avoidance totally bypasses a risk.  The information to States on threats posed to their civil aviation over conflict zones would therefore had  to be disseminated through policy and procedure, training and education and technology implementations.

We did not do that.

Sorry little girl. May the doors of heaven open at the sound of your footsteps May a bright angel watch over and follow you  through your  inevitable journey. May we meet again on the horizon of eternity when our ship finally sails beyond every limit of our sight.

Above all, may we never walk away from you.

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India: Adani Unveils ‘Everything’ to Rebut Hindenburg allegations

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Richest Indian Gautam Adani’s group on Sunday likened the damning allegations made by short seller Hindenburg Research to a “calculated attack” on India, its institutions and growth story, saying the allegations are “nothing but a lie”.

In a 413-page response, Adani Group said the report was driven by “an ulterior motive” to “create a false market” to allow the US firm to make financial gains.

“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” it said.

Stating that the allegations in Hindenburg Research’s January 24 report are “nothing but a lie”, it said the document is “a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive”.

“This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors,” it said.

It went on to question the credibility and ethics of Hindenburg, and said the mala fide intention underlying the report were apparent given its timing when Adani Enterprises Limited is undertaking one of the largest ever further public offering of equity shares in India.

“Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws,” it said. “The report is neither ‘independent’ nor ‘objective’ nor ‘well researched’.”

Activist short seller Hindenburg Research, the firm which caught global attention with takedowns of electric-vehicle makers Nikola and Lordstown Motors, alleged in a report on Wednesday that its two-year investigation found the Adani Group “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.

The report by the tiny New York firm that specialises in short selling has led to Adani group losing more than USD 50 billion in market value in just two trading sessions and Adani himself losing in excess of USD 20 billion, or about one-fifth of his total fortune.

Hindenburg called out the conglomerate’s “substantial debt”, which includes pledging shares for loans; that Adani’s brother Vinod “manages a vast labyrinth of offshore shell entities” that move billions into group companies without required disclosure; and that its auditor “hardly seems capable of complex audit work”.

Of the 88 questions raised by Hindenburg, 65 of them relate to matters that have been duly disclosed by Adani portfolio companies, Adani Group said. “Of the balance 23 questions, 18 relate to public shareholders and third parties (and not the Adani portfolio companies), while the balance 5 are baseless allegations based on imaginary fact patterns.”

It listed questions from the report and dismissed them as “false suggestions based on malicious misrepresentation of governance practices” or “manipulated narrative around unrelated third party entities” or “biased and unsubstantiated rhetoric”.

“We reaffirm that we are in compliance with all applicable laws and regulations. We are committed to the highest levels of governance to protect the interests of all our stakeholders,” it said. “The Adani Portfolio also has very strong internal controls and audit controls. All the listed companies of Adani Portfolio have a robust governance framework.”

The focus of the Adani portfolio and the Adani verticals is to contribute to nation building and take India to the world, it said.

“We will exercise our rights to pursue remedies to safeguard our stakeholders before all appropriate authorities and we reserve our rights to respond further to any of the allegations or contents of the Hindenburg report or to supplement this statement,” it added. 

Sources: PTI/ Agencies

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