Lanka pays its dues as UN goes on austerity mode

Sri Lanka this week settled its total dues to the regular 2019 budget of the United Nations after it was publicly disclosed that it was among 64 nations that had not paid in full.

The contribution amounts to US$ 1,226,819 (Rs. 223,519,116). Sri Lanka had earlier made three partial payments but has now settled the full sum through the Permanent Mission in New York, a Foreign Ministry Spokesperson told the Sunday Times.

UN Secretary-General Antonio Guterres has written to Member States about the “worst cash crisis” facing the multilateral organisation in nearly a decade, his Spokesman Stéphane Dujarric said this week. The organisation ran the risk of depleting its liquidity reserves by the end of the month and defaulting on payments to staff and vendors.

Stressing the Charter obligation of Member States, the Secretary-General has thanked the Member States that have paid their regular budget assessments, which is now 129, and urged those who had not paid to do so urgently and in full.

Payment of dues was “the only way to avoid a default that could risk disrupting operations globally”, the Secretary-General pointed out. He asked Governments to address the underlying reasons for the crisis and agree on measures to put the UN on a sound financial footing.

Of Sri Lanka’s payment, US$ 121,594 (Rs 21,952,761) is termed as “credit from staff assessment”. This means that amount is paid for by Sri Lankan staff at the UN in 2019 through what is called “staff assessments” in lieu of income taxes which are only by Americans in UN employment. (All other nationals at the UN pay staff assessments instead of US taxes).

Consequently, the more nationals a country has at the UN, the less dues it has to pay and this applies to all 192 Member States other than the US.

On Thursday, Mr Guterres wrote to UN staff implementing austerity measures in view of budget difficulties. Among the steps being taken is limiting of air conditioning and heating outside the hours of 8am to 6pm on weekdays and throughout weekends and official holidays (the thermostat will be set to 70 degrees Fahrenheit during hours of occupancy). Catering facilities will operate with reduced hours and only furniture that is beyond repair will be replaced. The Secretariat fountain will also be shut down with immediate effect.