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US Under Secretary assured continuous assistance for Sri Lanka economic stability

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By: Staff Writer

February 19, Colombo (LNW): US Under Secretary for Public Diplomacy and Public Affairs Elizabeth Allen met with Sri Lanka’s Foreign Secretary Aruni Wijewardane on Saturday (17 Feb.), and discussed several recent positive developments between Sri Lanka and the US in the 75th anniversary year of diplomatic relations.

During their meeting at the Ministry of Foreign Affairs, the Under Secretary assured the continuous US assistance to the Government of Sri Lanka towards realizing economic stability, and discussed ways to strengthen people-to-people ties and Diaspora outreach.

US has provided emergency assistance to address the needs of marginalized and vulnerable communities impacted by Sri Lanka’s economic crisis.

This new funding will also provide technical assistance to the Government of Sri Lanka as it implements economic and financial reform measures to stabilize the economy, in line with an anticipated International Monetary Fund (IMF) package.

This emergency funding through the U.S. government’s development arm, the U.S. Agency for International Development (USAID), responds to emerging or unforeseen complex crises overseas.

Part of this funding will go to USAID’s social cohesion and reconciliation project (SCORE) to support small-scale agricultural productivity and microenterprises in communities that traditionally experience high poverty rates and are especially impacted by the crisis.

This funding will also support public sector efficiency and resource management through USAID’s project to accelerate results in trade, national expenditure, and revenue (PARTNER).

Meanwhile, Foreign Secretary Wijewardane welcomed the development assistance extended by the US International Development Finance Corporation in November 2023 to the Colombo West International Terminal Private Limited and appreciated the humanitarian and emergency aid extended to Sri Lanka to overcome the economic challenges of the country.

She also welcomed the US assistance in securing the Extended Fund Facility Programme (EFF) under IMF. Foreign Secretary Wijewardane apprised Under Secretary Allen on the developments in the economic and reconciliation fronts, and Sri Lanka’s priorities as Chair of the Indian Ocean Rim Association.

US Under Secretary Allen was accompanied by the Ambassador of the US to Sri Lanka Julie Chung, officials from the Department of State, and the US Embassy in Colombo. Senior officials of the Foreign Ministry were associated with the Foreign Secretary at the meeting.

She arrived in Sri Lanka earlier today, and was cordially welcomed by the US Ambassador.

During her stay here, Allen will meet with government officials, media representatives, digital content creators and youth leaders to discuss the partnership between the two nations and the safeguarding of Sri Lanka’s information and media space, and to explore ways to work together to promote prosperity on the island nation, Chung said further.

Following her Sri Lanka tour, Allen will embark on a visit to India.

FAO DG arrives in the island to open 37th Asia and the Pacific conference

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By: Staff Writer

February 19, Colombo (LNW): The Food and Agriculture Organization of the United Nations (FAO) will hold its 37th Regional Conference for Asia and the Pacific (APRC37) in Colombo..

The overarching goal of FAO’s programme in Sri Lanka continues to be the reduction of food insecurity, malnutrition and vulnerabilities, and the sustainable management and use of the country’s natural resources.

The Director-General of the Food and Agriculture Organization of the United Nations (FAO), Dr QU Dongyu, arrived on Sunday in Sri Lanka for a three-day visit to participate in the 37th Session of the FAO Regional Conference for Asia and the Pacific (APRC37).

The event, hosted by Sri Lanka from 19 – 22 February, will see the participation of Government Ministers and Heads of Delegations from as many as 46 Member Nations gathering in Colombo.

The Director-General was received at the airport by Janaka Dharmakeerthi, Secretary to the Ministry of Agriculture in Sri Lanka, Jong-Jin Kim, FAO Assistant Director-General and Regional Representative, and Vimlendra Sharan, the FAO Representative for Sri Lanka.

During his stay, the Director-General will also visit agricultural sites, and is scheduled to hold a series of bilateral discussions with Sri Lankan leadership and Ministers from other Asia-Pacific countries.

The APRC37, convened by FAO’s Regional Office for Asia and the Pacific and hosted by the Government of Sri Lanka, marks a major international, multilateral milestone in an effort to reform agrifood systems across the Asia-Pacific region.

President Ranil Wickremesinghe and the Director-General are expected to inaugurate the Ministerial session of the conference on Tuesday, 20 February, with delegates from across the Asia-Pacific region participating.

The objective is to outline a pathway toward a full recovery from the pandemic and other converging crises, and reinforce ways to rebuild and transform the region’s agrifood systems, delivered through better production, better nutrition, a better environment and leading to a better life for all – leaving no one behind.

The Asia Pacific Regional Conference will facilitate discussions among agriculture ministers and officials from 46 member countries to address food and agriculture challenges and priorities, promoting regional coherence.

The Ministerial session, scheduled for February 19 to 22, 2024, will be preceded by a Virtual Senior Officers Meeting, chaired by the Secretary, Minister of Agriculture and Plantation Industries Janaka Dharmakeerthi and presented for adoption,

FAO has supported Sri Lanka for over 40 years, implementing Good Agricultural Practices and developing the fisheries sector for growth and climate resilience, highlighting innovative partnerships with the government, said Vimlendra Sharan.

 Sri Lanka’s hosting of the 37th APRC showcases its commitment to sustainable agriculture growth, demonstrating its commitment to regional development and partnership with other countries.

The APRC agenda will feature a forum on agritourism, aimed at recognizing Sri Lanka’s potential as an agritourism destination and generating foreign exchange.

Indian envoy confirms Nagapattinam–KKS ferry services resumption soon

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By: Staff Writer

February 19, Colombo (LNW): The High Commissioner of India in Sri Lanka, Santosh Jha, has expressed confidence regarding earliest recommencement of Nagapattinam – Kankesanthurai (KKS) ferry service in the coming weeks, adding that efforts are also underway to resume the ferry services between Talaimannar and Rameswaram.

The Indian High Commissioner made these remarks during his visit to the KKS Port and the Talaimannar Pier, where he spoke of the need for expeditious resumption of ferry services between the two countries.

High Commissioner Jha undertook his first official visit to Sri Lanka’s Northern Province from 15 to 17 February, during which the diverse engagements he participated in attested to the deep-rooted nature of the bilateral partnership and India’s firm commitment to deepening socio-economic and cultural ties with Northern Province, the High Commission said in a statement.

The High Commissioner paid special emphasis to furthering connectivity initiatives – the central theme of the bilateral economic partnership vision document issued in July 2023 – and explored means to strengthen air connectivity through infrastructure development at the Palaly Airport.

A statement issued by the Indian High Commission of India in Colombo further read:

Underscoring the rich and shared cultural heritage between India and Sri Lanka, High Commissioner offered prayers at the historic Ram Sethu (Adam’s Bridge). He also visited the ancient Thiruketheeswaram temple, which was renovated with grant assistance from Government of India.

He prayed for well-being and prosperity of the people of India and Sri Lanka as he paid respects at the Nagapooshani Amman Temple and Nagavihara in Nainativu island; revered Madhu Church in Mannar; and Nallur Kandaswamy temple.

 Further, he attended Thyagaraja Aradhana at the iconic Jaffna Cultural Centre, a gift from the people of India.

Reaffirming India’s commitment to diverse sections of the society, High Commissioner distributed deep freezers to fishermen communities in Mannar towards enhancing their livelihood opportunities. He also distributed dry rations to hundreds of needy families in Jaffna and Kilinochchi, with special focus on those headed by women.

In India’s endeavour to contribute towards addressing energy needs of islands off Jaffna, he assessed the readiness for early roll out of the Hybrid Renewable Energy Systems Project in Nainativu Island. It may be recalled that this project is being implemented in Delft, Nainativu and Analaitivu Islands through grant assistance from India.

High Commissioner paid homage to the brave sons of India who made the supreme sacrifice at the Indian Peace Keeping Forces (IPKF)

High Commissioner had engaging discussions with a wide cross section of stakeholders in the region including elected representatives, academics, and businessmen, among several others on avenues for further collaboration and development.

With grant assistance of more than SLR 70 billion, Northern Province has been a region of focus in India’s multi-dimensional development cooperation partnership with Sri Lanka and the visit was an opportunity to reiterate India’s unwavering commitment to the people of the region.

Sri Lanka Original Narrative Summary: 19/02

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  1. Indian High Commissioner Santosh Jha expresses optimism about the prompt resumption of the Nagapattinam – Kankesanthurai (KKS) ferry service and aims to revive ferry services between Talaimannar and Rameswaram: emphasises enhancing bilateral connectivity and strengthening cultural ties: reiterates India’s commitment to Northern Province’s development, engaging with various stakeholders to explore further collaboration.
  2. Opposition Leader Sajith Premadasa distinguishes his approach from others, asserting a commitment to practical solutions over false promises: emphasizes the importance of generating revenue through export-focused development to address the country’s significant debt, which amounts to US$ 90 billion.
  3. Finance State Minister responds to criticism involving the Central Bank’s conduct of increasing the institutional heads’ salaries in extraordinary amounts, stating that according to the Central Bank of Sri Lanka Act, the Central Bank ‘independently determines’ its employees’ salaries: asserts the importance of attracting and retaining exceptional talent for the critical role of the Central Bank.
  4. Sri Lanka aims to finalise negotiations on the Economic and Technology Cooperation Agreement (ETCA) with India in the coming months, following the recent Free Trade Agreement (FTA) with Thailand.
  5. US Assistant Secretary of State for South and Central Asian Affairs Donald Lu praises Sri Lanka’s recent progress from crisis to stability in a recent address: highlights the nation’s improved economy, stable food and fuel prices, and successful debt restructuring: appreciates international cooperation.
  6. The Port Access Elevated Highway (PAEH) Project, linking Colombo Harbour, Colombo Port City, and Katunayake Airport, nears completion, with over 85% of the work finished: Expected to open in October 2024.
  7. Tamil Nadu Police arrest three individuals from Nagapattinam district for attempting to smuggle over 364 kg of ganja to Sri Lanka: The suspects were caught planning to transport the contraband via sea route using a seized fiberglass boat: A case has been filed against them under the Narcotic Drugs and Psychotropic Substances (NDPS) Act by Vettaikaraniruppu Police.
  8. A Verité Research report exposes critical weaknesses in Sri Lanka’s procurement system, citing the absence of provisions to blacklist contractors engaged in corrupt activities: highlights non-compliance with regulations, such as failing to blacklist defaulting contractors.
  9. The Central Bank calls for legal reforms to streamline credit recovery processes, particularly for the MSME sector: Governor Weerasinghe highlights the need for expedited credit recovery cycles, advocating for a 3-6 month period for economic efficiency and SME support: Despite SME pressures, the Central Bank remains firm on maintaining banks’ Parate execution rights.
  10. CR and FC claim victory in the Nippon Paint Super Round League Rugby Tournament final after 26 years, defeating defending champions Kandy Sports Club 33-25: Despite trailing 6-13 at halftime, CR and FC staged a remarkable comeback: Mursheed Doray and Gemunu Chethiya played pivotal roles in the win.

Top US official applauds SL’s resurgence through international collaboration and strategic support

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February 19, Colombo (LNW): Assistant Secretary of State for South and Central Asian Affairs, Donald Lu, delivered a comprehensive analysis of Sri Lanka’s notable resurgence during a recent address, highlighting the nation’s remarkable transition from a period of crisis to stability, facilitated by collaborative efforts on the international stage.

Reflecting on Sri Lanka’s trajectory, Lu articulated the substantial progress witnessed over the past eighteen months, contrasting the previous climate of unrest, shortages, and political instability with the current landscape characterised by a stable economy, consistent food and fuel prices, and successful debt restructuring initiatives.

Emphasising the pivotal role of international cooperation in Sri Lanka’s revitalisation, Lu acknowledged the pivotal contributions made by key partners.

Notably, he commended India for its initial humanitarian aid and USAID’s critical agricultural support.

Additionally, Lu underscored the significance of debt restructuring efforts spearheaded by Japan, France, and India, which exerted pressure on other stakeholders, including China, ultimately facilitating access to IMF funding and fostering economic stability.

Furthermore, Lu elucidated on non-traditional avenues of support, citing the US Development Finance Corporation’s substantial investment of $553 million in the Colombo Port West Container Terminal.

This private sector initiative, he noted, not only directly benefits the Sri Lankan populace but also catalyses sustainable economic development.

Addressing broader strategic imperatives, Lu emphasised the importance of safeguarding Sri Lanka’s sovereignty, highlighting US assistance in the form of patrol boats for the Sri Lankan military and the forthcoming delivery of a King Air aircraft to bolster coastal surveillance capabilities.

In conclusion, Lu reiterated Sri Lanka’s remarkable turnaround as a testament to the collective efforts of the international community.

He underscored the Indo-Pacific strategy’s ethos of partnership and collaboration, emphasising its role in offering a more promising future for nations in the region.

Dollar rate at SL commercial banks today (Feb 19)

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February 19, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further appreciation against the US Dollar today (19) in comparison to last week’s Friday, as per the exchange rates issued by leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 306.71 from Rs. 306.95, and the selling price to Rs. 317.40 from Rs. 317.65.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 306.25 from Rs. 306.50, and the selling price to Rs. 316.25 from Rs. 316.50.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 307.50 and Rs. 316.50, respectively.

Govt to launch probe into alleged false information provided by CBSL

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February 19, Colombo (LNW): An investigation will be launched into the allegations that the Central Bank of Sri Lanka (CBSL) is issuing false information.

The above announcement was made by Finance State Minister Ranjith Siyambalapitiya.

He also affirmed that a report is being prepared to address the concern and will be presented to both Parliament and the President.

SL to conclude negotiations on ETCA with India soon

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February 19, Colombo (LNW): Following the recent enactment of the Free Trade Agreement (FTA) with Thailand, Sri Lanka is presently strategising to conclude negotiations on the Economic and Technology Cooperation Agreement (ETCA) with India within the forthcoming months, while also gearing up to resume discussions on a Free Trade Agreement (FTA) with China in April, as per sources familiar with the matter.

There exists underlying apprehension regarding the Economic and Technology Cooperation Agreement (ETCA) with India within certain circles.

Sri Lanka’s professional sectors remain cautious about liberalising the service industry, expressing concerns that an influx of Indian professionals may jeopardise local job opportunities.

After a hiatus of five years, Sri Lanka re-initiated discussions on the ETCA last year, with the 13th round of talks convened in January of the current year.

The upcoming negotiations are scheduled to take place in Colombo from March 10 to 12, aiming to conclude negotiations by the end of April, contingent upon receiving Cabinet clearance, for a swift signing of the agreement.

Regarding the service sector, it has been reported that India has advocated for its liberalisation; however, Sri Lanka has declined such provisions, particularly concerning professional fields like medicine and engineering.

In an effort to assuage the concerns of Sri Lankan professionals, the government plans to engage with organisations such as the Government Medical Officers’ Association (GMOA) in the lead-up to the next round of talks.

SL Embassy to the UAE celebrates 76th Anniversary of Independence of Sri Lanka

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In celebration of the 76th Anniversary of Independence of Sri Lanka, the Embassy of Sri Lanka to the UAE, hosted a prestigious diplomatic reception on 9th February 2024, at hotel Shangri-La Abu Dhabi.

The event brought together 120 number of Ambassadors and Heads of Missions from UAE, and notable figures for an evening of celebration. The dignitaries that attended the event included H.E. Sultan Al Shamsi- Assistant Minister of Foreign Affairs and International Cooperation for International Development Affairs of the UAE, Sheikh Humaid bin Rashid Al Nuaimi – Royal family member of Ajman, Hon. Manusha Nanayakkara- Minister of Labour and Foreign Employment of Sri Lanka and Sheikh Khalid bin Ahmed Al Hamed – Chairman IBMC International Group, whose presence underscored the importance of fostering strong ties between Sri Lanka and the international community.

In his remarks, Udaya Indrarathna Ambassador of Sri Lanka to the UAE highlighted that under the visionary leadership of H.E. the President, Ranil Wickremesinghe- Sri Lanka is rejuvenating and is on a committed path for prosperity and success amidst challenges. Ambassador further expressed gratitude to all those in attendance and reaffirmed the Embassy’s commitment to strengthening ties with the host country and the international community at large.
As the evening unfolded, guests were treated to a selection of fine cuisine, showcasing the rich culinary heritage of Sri Lanka. Traditional music and cultural performances performed by the renowned Sri Lankan dancing troupe – Chandana Wickramasinghe and the Dancers Guild added colour to the festive ambiance, transporting attendees on a journey of discovery and appreciation for the island nation’s vibrant culture and heritage.

The event served as a platform for meaningful discussions and networking opportunities, allowing guests to explore potential collaborations and initiatives that could benefit both Sri Lanka and its global partners. From engaging conversations to shared experiences, the diplomatic reception exemplified the power of diplomacy in building bridges and forging lasting friendships.

The Embassy of Sri Lanka extends its heartfelt gratitude to all the sponsors of the event, including the Platinum partner Mr. Rusan Fyroze – CEO – Siraj Finance PJSC, Gold sponsors – Sri Lankan Airlines Ltd, Mr. Lakshmi Narayanan – Chairman Sovereign Wealth Fund Institute, Mr. Ashish Vijay – Chairman of House of Ashish
Vijay, Silver sponsors Alpen Capital, Heartland General Trading, Burjeel Holdings,
Frico International LLC and all other sponsors, well wishers and the distinguished
guests who made the event a success.

Embassy of Sri Lanka – Abu Dhabi
13 February 2024

CBSL calls for legal reforms to strengthen credit recovery laws

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February 19, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) advocates for legal reforms to enhance Sri Lanka’s Parate execution law and other credit recovery laws, aiming to expedite credit recovery cycles in line with global standards.

CB Governor Dr. Nandalal Weerasinghe emphasised the need for strengthening these laws to support the Micro, Small and Medium Enterprise (MSME) sector, ensuring smoother access to credit and facilitating business continuity.

Speaking at a webinar organised by Daily FT, ACCA, and other associations, Weerasinghe underscored the importance of a 3-6 month credit recovery period for economic efficiency and SME support, distinguishing between SMEs and willful defaulters.

Despite SME pressures, the Central Bank maintains its stance against amending banks’ Parate execution rights, he added.