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CB shifts focus to medium-term inflation for enhanced decision-making

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February 22, Colombo (LNW): The Central Bank announced its strategic shift towards focusing on medium-term inflation, deeming it more relevant for decision-making processes.

This adjustment aims to address the lag in transmission of policy decisions to near-term inflation outcomes.

In a technical discussion on the Monetary Policy report, a senior Central Bank official explained that this shift intends to provide more insightful guidance to markets and stakeholders, fostering better policy coordination and expectation management.

The Central Bank typically experiences a transmission period of six to 12 months, extending to 18 months in specific cases, with an inflation outlook spanning eight quarters ahead.

Despite an anticipated uptick in inflation for the current year due to one-off impacts like Value Added Tax changes, officials foresee stabilisation towards the year-end and early next year.

Confidence remains in the economy’s ability to return inflation to the government’s 5 per cent target, despite short-term deviations caused by recent tax adjustments and supply disruptions.

However, the latest Monetary Policy Report warns of near-term inflation risks skewed to the upside due to supply-side factors, while medium-term projections are balanced.

CEB proposes electricity tariff reduction, aims to pass benefits to consumers

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February 22, Colombo (LNW): The Ceylon Electricity Board (CEB) has announced plans to submit a proposal for electricity tariff reduction to the Public Utilities Commission of Sri Lanka (PUCSL) today (22).

The state-owned electricity provider aims to pass on the benefits of its profits to consumers through this tariff revision, according to CEB Spokesperson Eng. Noel Priyantha.

Power and Energy Minister Kanchana Wijesekera informed Parliament on February 22 that the CEB intends to lower rates by at least the same percentages as the increases implemented in October 2023.

Last year, electricity tariffs rose by 18 per cent for domestic and religious institutions, 12 per cent for industries and hotels, and 24 per cent for government entities.

Mainly fair weather to prevail, but public urged to stay hydrated amid increased heat index

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By: Isuru Parakrama

February 22, Colombo (LNW): Except for a few showers in Southern province and in Rathnapura district in the evening or night mainly fair weather will prevail elsewhere over the Island, the Department of Meteorology said in its daily weather forecast today (22).

Misty conditions can be expected at some places in Western and Sabaragamuwa provinces during the morning, the statement added.

Marine Weather:

Condition of Rain:
Mainly fair weather will prevail over the sea areas around the island.
Winds:
Wind will be variable and wind speed will be (10-20) kmph in the sea areas around the island
State of Sea:
Sea areas around the island will be Slight.

Meanwhile, the Natural Hazards Early Warning Centre of the Department warned that the head index is expected to increase up to caution level at some places in North-western province and Gampaha, Colombo, Hambantota and Monaragala districts.

Minister Urges Halt to Overseas Housemaid Employment for Sri Lankan Women

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February 21, Colombo (LNW): The Minister of Labour and Foreign Employment, Manusha Nanayakkara, has called upon the Sri Lanka Bureau of Foreign Employment and the Association of Licensed Foreign Employment Agencies to present comprehensive proposals and plans aimed at discontinuing the practice of sending Sri Lankan women abroad to work as housemaids.

During a discussion with members of the Association of Licensed Foreign Employment Agencies, the Minister stressed the need to shift focus from sending women for overseas domestic work and instead encouraged proposals to channel women towards high-paying skilled categories of employment. Nanayakkara emphasized the importance of including the perspectives and suggestions of all stakeholders in these proposals.

The Minister outlined a vision to completely cease the migration of Sri Lankan women for domestic work overseas within the next ten years. He expressed the intent to enhance opportunities for women to pursue employment in skilled categories, fostering a shift away from traditional roles as housemaids. Nanayakkara highlighted the importance of collaborative efforts to achieve this transformation in the country’s overseas employment landscape.

Finance State Minister Pledges to Achieve 5% Inflation by Mid-2024

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February 21, Colombo (LNW): In a session at Parliament, Finance State Minister Ranjith Siyambalapitiya assured lawmakers that the government is actively working to bring down inflation to 5 percent by the middle of the year. He highlighted the successful efforts in reducing the inflation rate from 70 percent to the current 6 percent and expressed confidence in achieving the targeted 5 percent inflation rate.

Siyambalapitiya emphasized the improvement in foreign reserves, noting that the amount has surged from a low of USD two million to USD 4.7 billion. Reflecting on past challenges, he recalled a period not long ago when financial constraints led to the turning back of oil tankers. However, he pointed out that the situation has improved significantly.

Addressing economic indicators, the State Minister shared positive news about public debt, which has decreased from 128 percent of GDP to 104 percent. Siyambalapitiya urged patience, stating that economic recovery is a gradual process and cannot happen overnight.

Highlighting the need for unity beyond political slogans, the State Minister encouraged collective efforts for the betterment of the country and its citizens. Responding to opposition queries about salary increases for Central Bank of Sri Lanka (CBSL) employees, he clarified that such increments were granted to crucial positions with no immediate replacements to retain skilled professionals.

Siyambalapitiya disclosed that, in accordance with the collective agreement, CBSL employees are entitled to salary increases every three years. He also addressed concerns about staff turnover, stating that 10 percent of CBSL employees had gone abroad during the 2022-23 period. The State Minister assured that funds for CBSL employee salaries are allocated from the CBSL account.

Power and Energy Minister Vows to Slash Electricity Bills Beyond Previous Commitments

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February 21, Colombo (LNW): In a parliamentary session on the 20th, Power and Energy Minister Kanchana Wijesekera declared his commitment to achieving a more significant reduction in electricity bills than initially stated. The minister informed the Parliament that proposals from various parties had been considered for reducing electricity bills, and the Electricity Board’s formulated proposal would be submitted to the Public Utilities Commission in the coming days for further assessment.

Minister Wijesekera emphasized that the revision of electricity prices would be made in alignment with the accepted proposal. He aims to bring about a substantial reduction in electricity costs for consumers.

Addressing recent claims made by Ranjan Jayalal of the Ceylon Electricity Public Employees’ Union during a press conference, Minister Wijesekera refuted the statement that the electricity bill for the parliament had not been settled. He clarified that the Parliament had duly paid its electricity bill on schedule.

Expressing concern over the potentially damaging impact of false information, the Minister called upon the Speaker to summon him to the Parliamentary Privileges Committee. He argued that the dissemination of inaccurate news, such as the non-payment of the parliament’s electricity bill, has contributed to the creation of unwarranted animosity among the public towards the entire parliamentary body and its members.

Minister Bandula Frustrated Over Delay in Implementing Low-Cost Rail Crossing Safety System

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February 21, Colombo (LNW): Cabinet Spokesman and Minister of Transport, Highways, and Mass Media, Dr. Bandula Gunawardhana, expressed his frustration yesterday over the prolonged delay in implementing a low-cost signal system for rail crossings aimed at ensuring safety. During a media briefing at the Government Information Department to announce Cabinet decisions, the Minister revealed that despite presenting the proposal, the project has come to a standstill due to delays caused by the Treasury’s requests for reports.

Responding to a question from a journalist regarding a recent tragic accident at an unprotected rail crossing in Arachchikattuwa Anavilundawa, where a mother and her two children lost their lives in a collision with a train, Minister Gunawardhana emphasized the urgency of addressing rail crossing safety.

The Minister clarified, “I presented a Cabinet proposal to solve the problem of signals at rail crossings at a low cost to protect human and animal lives. This signal gate system, costing less than Rs.1.5 million, involves collaboration with the private sector and state-owned corporations. Despite obtaining support from the Opposition Leader and submitting a Cabinet paper, the Treasury’s delays in releasing funds and requesting numerous reports have hindered progress.”

Expressing his discontent, Minister Gunawardhana stated that if the Treasury continues to act in this manner, he will inform the Cabinet and consider handing over the responsibility of governing the Railways and SLTB to the Treasury. He underscored the potential loss of more lives if crucial projects for public benefit continue to be delayed by bureaucratic procedures.

Highlighting another issue, the Minister mentioned the lack of a recruitment and promotion procedure for the SLTB for the past 66 years. He lamented that the Treasury’s persistent delays, committee formations, and report requests hinder the implementation of essential measures for the benefit of the public.

WHO’s Specialized Leprosy Team to Assist Sri Lanka’s 10-Year Eradication Plan

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February 21, Colombo (LNW): In a significant development, a dedicated medical team from the World Health Organization (WHO), specializing in leprosy, is set to visit Sri Lanka in March. The Anti-Leprosy Campaign (ALC) revealed that the WHO will collaborate with local health authorities to devise a strategic roadmap for the elimination of leprosy from Sri Lanka within the next decade.

Dr. Prasan Ranaweera, Director of the Anti-Leprosy Campaign, highlighted the noticeable increase in the number of leprosy patients in Sri Lanka. In response to this concern, the ALC has already launched a comprehensive program to eradicate leprosy from the country. Dr. Ranaweera further disclosed that the WHO, recognizing the urgency of the situation, will dispatch a team of specialist doctors in March to contribute to the initiative. Their primary objective will be to formulate a detailed plan outlining the steps necessary to eliminate leprosy within the next 10 years.

Dr. Geethika Ratnawardena Appointed as First Chief Medical Officer of Colombo City Council

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February 21, Colombo (LNW): Dr. Shanti Geetika Ratnawardena has been named the inaugural Chief Medical Officer of the Colombo City Council. Previously serving as the Deputy Chief Medical Officer of the Department of Public Health (CMOH), established in 1902 within the Colombo Municipal Council, Dr. Ratnawardena assumed her new role on the 19th of this month.

With this appointment, she becomes the 13th Chief Medical Officer in the history of the Colombo Municipality. Dr. Ratnawardena, an alumna of Musius College, Colombo, has a long-standing association with the Colombo Municipal Council, joining in 1991. Over her thirty-three years of service, she progressed from a Medical Officer of Health in 2000 to Deputy Chief Medical Officer of Health in 2014.

The appointment is a testament to Dr. Ratnawardena’s extensive experience and dedication to public health. Her role as the Chief Medical Officer underscores her commitment to advancing healthcare initiatives within the Colombo City Council. Dr. Ratnawardena is married to Mr. Jayantha Guruge, a Project Consultant at Helis Company, Colombo.

Joint Protest in Colombo Against Sale of State Resources Planned for Wednesday

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February 21, Colombo (LNW): A united front is set to stage a joint protest in Colombo on Wednesday (21) opposing the sale of state resources. Organized by the National Resources Protection Movement, the demonstration brings together various trade unions, including those from the telecommunications, postal, banking, electricity, and insurance sectors.

Chinthaka Bandara, Co-convener of the National Resources Protection Movement, highlighted the imminent threat of selling nearly 40 state-owned businesses. The protest aims to voice collective opposition to the proposed sale and draw attention to the concerns raised by the involved trade unions.

The demonstration reflects a shared commitment among diverse sectors to protect and preserve state resources, signaling a unified stand against privatization efforts. As plans unfold for the protest, the organizers anticipate a strong representation from workers advocating for the safeguarding of public assets and resources.