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State revenue surges by 25 per cent in January following VAT adjustment

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February 08, Colombo (LNW): In a recent update on fiscal performance, Finance State Minister Ranjith Siyambalapitiya announced a notable surge in state revenue, marking a 25 per cent increase in January following the implementation of a Value Added Tax (VAT) adjustment.

The revenue for January 2024 reached Rs. 274 billion, surpassing the anticipated figure of Rs. 219 billion.

Highlighting specific departmental achievements, Minister Siyambalapitiya noted that the Customs Department exceeded its designated target of Rs. 114 billion by recording Rs. 121 billion, representing an 11 percent surplus.

Similarly, the Excise Department surpassed its revenue goal of Rs. 12 billion by generating Rs. 14 billion in revenue.

Additionally, the Inland Revenue Department significantly outperformed expectations, recording Rs. 114 billion against a target of Rs. 88.9 billion.

Addressing concerns about potential price hikes due to the VAT adjustment, Siyambalapitiya highlighted that January’s inflation rate stood at 6.4 per cent, with food inflation at a modest 3.3 per cent.

He attributed this to the exemption of essential commodities from VAT, effectively mitigating price increases in this sector. Non-food inflation was reported at 7.9 per cent.

The Minister emphasised that the rise in state revenue will have positive implications for the entire populace, indicating broader economic stability and prospects for development.

Pope claps back at critics who denounced his decision to permit blessings for same-sex couples

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February 08, World (LNW): Pope Francis has responded to critics of his decision to permit blessings for same-sex couples, condemning what he sees as ‘hypocrisy’ in their objections.

In an interview featured in the upcoming edition of the Italian magazine Credere, set to be published on Thursday, February 8, the Pope addressed the controversy surrounding his authorisation of informal blessings for couples in “irregular” unions, including same-sex partnerships.

He highlighted the inconsistency of critics who find no fault in blessing individuals engaged in exploitative behaviour but express outrage over blessings for same-sex couples.

Last year, Pope Francis made history by becoming the first Pope to authorise priests to bestow informal blessings on couples in non-traditional unions, a departure from previous Vatican policy.

This historic move marked a significant shift in the Church’s stance on LGBTQIA+ issues, eliciting varied reactions worldwide.

While many in Western churches welcomed the decision, the response from African bishops differed. They opted not to offer blessings for same-sex couples, citing cultural considerations and potential confusion within African communities.

Despite this disagreement, the African bishops reaffirmed their loyalty to the Pope.

Criticism of the Pope’s decision has also emerged from conservative factions within the Church, primarily in the United States and parts of Europe.

Pope Francis characterised these critics as belonging to “small ideological groups” in previous statements.

In his interview with Credere, the Pope clarified that the blessings he authorised are not for the union itself but for the individuals involved. He emphasised that he blesses two people who love each other, regardless of their sexual orientation, and requests their prayers.

The Pope stressed that blessings should be accessible to all who seek them, including those in non-traditional relationships, provided they meet the criteria for church participation.

Pope Francis’ advocacy for LGBTQIA+ inclusivity aligns with his broader efforts to foster a more compassionate and accepting approach within the Catholic Church. However, resistance persists from certain segments of Catholicism.

In addressing questions about his health and mobility, Pope Francis underscored the importance of church leaders being attuned to the needs and experiences of ordinary people. He further emphasised that effective leadership is not contingent upon physical mobility but rather on empathy and genuine connection with the faithful.

CID under scrutiny for filing case against Pastor Jerome Fernando in wrong court

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February 08, Colombo (LNW): The Criminal Investigations Department (CID) has come under scrutiny for initiating legal proceedings against Pastor Jerome Fernando, a self-proclaimed prophet in Sri Lanka, for alleged illegal assets in a jurisdictional area distant from the incident.

Fort Magistrate Thilina Gamage expressed strong disapproval of the CID’s handling of the case, questioning why it was not brought before the nearest judicial authority, a report by Daily News disclosed.

The Magistrate’s inquiry followed reports that a case had been filed against Pastor Jerome in the Mount Lavinia Court under the Money Laundering Act for purported illegal assets.

Asserting his intention to seek clarification from the Acting Inspector General of Police (IGP) on the matter, the Magistrate also indicated that disciplinary measures might be taken against the CID for not adhering to proper jurisdictional procedures.

Additionally, the Magistrate ordered that the case against Fernando be scheduled for a hearing on April 3, 2024.

Police operation nets 42 suspects in public transportation crimes

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February 08, Colombo (LNW): In a concerted effort to address crimes and harassment in public transportation, law enforcement authorities conducted a specialised operation resulting in the arrest of 42 individuals.

Among the apprehended individuals, 18 were detained on allegations related to sexual harassment, while five were held for pickpocketing offenses, Acting Inspector General of Police (IGP) Deshabandu Tennakoon disclosed.

Tennakoon elaborated that the arrests were made by plainclothes police officers stationed in densely populated areas and transportation hubs, including bus terminals.

This strategic deployment aimed to proactively deter and intercept criminal activities occurring within the public transportation network.

Official exchange rates in Sri Lanka today (Feb 08)

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February 08, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates slight appreciation against the US Dollar today (08) in comparison to yesterday, as per the official exchange rates issued by the Central Bank of Sri Lanka.

Accordingly, the buying price of the US Dollar has dropped to Rs. 308.49 from Rs. 308.56, and the selling price has dropped to Rs. 318.58 from Rs. 318.68.

The Sri Lankan Rupee, meanwhile, indicates similar pattern against several other foreign currencies as well.

Jagath Priyankara sworn in as MP following Sanath Nishantha’s passing

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February 08, Colombo (LNW): L.K. Jagath Priyankara, representing the National Freedom Front (NFF), has been officially sworn in as a Member of the Parliament of Sri Lanka.

Priyankara was sworn in before the Speaker, assuming the parliamentary seat left vacant by the passing of former State Minister Sanath Nishantha.

Designated as the Sri Lanka Podujana Peramuna (SLPP) Member of Parliament for the Puttalam District, Priyankara fills the position previously held by the late Sanath Nishantha.

A Gazette notification promptly announced Jagath Priyankara’s appointment to Parliament, thereby fulfilling the seat left vacant by Nishantha.

Subsequently, the National Election Commission officially declared Jagath Priyankara as a MP, representing the electoral district of Puttalam.

Priyankara holds membership in the National Freedom Front (Jathika Nidahas Peramuna), led by MP Wimal Weerawansa.

CBSL eases restrictions on standing facilities for licenced commercial banks

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February 08, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has announced its decision to alleviate restrictions previously imposed on Standing Facilities available to Licensed Commercial Banks (LCBs) under Open Market Operations.

Effective from February 16, 2024, the CBSL will eliminate the restriction on the Standing Lending Facility and ease limitations on the Standing Deposit Facility.

Initiated on January 16, 2023, the CBSL had imposed restrictions on LCBs’ utilisation of Standing Facilities within Open Market Operations.

These restrictions encompassed a maximum of five accesses per calendar month to the Standing Deposit Facility (SDF) and capped access to the Standing Lending Facility (SLF) at 90 percent of each LCB’s Statutory Reserve Requirement (SRR) on any given day.

The rationale behind these measures was to mitigate LCBs’ reliance on overnight facilities provided by the Central Bank.

This aimed to revitalise the domestic money market, particularly the call money market, while encouraging LCBs to implement internal corrective measures.

Positive outcomes ensued from these measures, evident in the revitalisation of the domestic money market and the mitigation of excessive competition among financial institutions for deposit mobilisation.

Furthermore, these measures contributed to moderating the market interest rate structure in line with the monetary policy stance, thereby upholding the stability of financial institutions and the financial system.

Following a meticulous review of developments in the domestic money market and LCBs’ market participation, alongside liquidity improvements, the Monetary Policy Board, in its meeting held on February 07, resolved to relax the restrictions on Standing Facilities available to LCBs within OMOs.

Commencing from the reserve maintenance period starting February 16, 2024, the restriction on the SLF will be lifted entirely, and the restriction on the SDF will be relaxed from five to ten accesses per calendar month.

The relaxation of these restrictions is anticipated to expedite the downward adjustments in market interest rates, aligning with the overarching monetary policy direction of the Central Bank.

President leaves SL to participate 7th Indian Ocean Conference in Perth, Australia

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February 08, Colombo (LNW): President Ranil Wickremesinghe has left Sri Lanka earlier this (08) morning to participate in the 7th Indian Ocean Conference in Perth, Australia.

His attendance expects a key note address from February 09 to February 10 at the conference, according to a statement by the President’s Media Division.

Invited by the India Foundation and the Government of Australia, he will also explore investment opportunities for Sri Lanka during the event.

Dollar rate at commercial banks today (Feb 08)

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February 08, Colombo (LNW): The Sri Lankan Rupee happens to have slightly depreciated against the US Dollar today (08) in comparison to yesterday, as per leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has increased to Rs. 307.69 from Rs. 307.20, and the selling price to Rs. 318.41 from Rs. 317.90.

As of 9 am this morning, Commercial Bank reveals that the buying price of the US Dollar has increased to Rs. 307.99 from Rs. 307.12, and the selling price remains unchanged at Rs. 318. These figures may subject to change later today.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 308 and Rs. 317, respectively.

Sri Lanka Original Narrative Summary: 08/02

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  1. President Ranil Wickremesinghe leaves for Perth, Australia to participate in the 7th Indian Ocean Conference at the invitation of the India Foundation and Govt of Australia: expected to deliver the keynote address and to “explore investment opportunities for SL”.
  2. Presidential Secretariat issues Gazette to bring the Online Safety Act under the purview of the Ministry of Public Security.
  3. Reports emerge that SL is not likely to join Operation “Prosperity Guardian” in the Red Sea to counter attacks mounted by Yemen-based Houthis: previously, the possibility of SL deploying 2 vessels to support the US-led operation was discussed after President Wickremesinghe declared an intention to join the multinational maritime task force.
  4. State Minister of Tourism Diana Gamage confirms that the Cabinet had already approved the export of cannabis: previously, Minister Bandula Gunawardena had dismissed claims that a proposal had been presented to the Cabinet on cultivating cannabis for export.
  5. Central Bank says Official Reserve Assets have increased 2.3% to USD 4,491 mn in Jan’24 from USD 4,392 mn in Dec’23: also says it includes the SWAP facility from China of around USD 1,400 mn, which is subject to conditionalities on usability: analysts point out however that about USD 8,000 mn is now in default as “unpaid”, after the CB Governor & Treasury Secretary announced bankruptcy on 12th April’22.
  6. Wife of late Minister Sanath Nishantha who was recently killed on the Katunayake Expressway, lodges a complaint with the CID stating that there are suspicions over the late Minister’s death: requests the CID to investigate.
  7. Colombo Fort Magistrate Thilina Gamage questions as to how the CID filed action before the Mount Lavinia Magistrate’s Court against Pastor Jerome Fernando under the Prevention of Money Laundering Act, contrary to the accepted Court jurisdiction: observes the CID has no authority to arbitrarily determine the judicial jurisdictions when filing a case, as these have been established through a gazette notification.
  8. President Ranil Wickremesinghe stresses need for a long-term, robust nation building programme: says he will introduce an “Economic Transformation Act” to enable the required economic transition: invites presentation of alternative methods for national reconstruction: expresses readiness to engage in discussions with top officials the IMF & World Bank in that regard: appeals for unity in nation-building despite political differences: calls on SJB, JVP, Tamil parties & Muslim parties to follow the example set by the SLPP, and join in a collective effort for the country’s progress.
  9. SJB & Opposition Leader Sajith Premadasa walks out of the Parliament Chamber when President Ranil Wickremesinghe begins to present the Govt’s policy statement at the opening of the 5th Session of the 9th Parliament: however, several SJB MPs including Sarath Fonseka, Rajitha Senaratne, Kumara Welgama, Faisal Cassim, A H M Fowzie, Vadivel Suresh and Ishaq Rahman remain in the Chamber.
  10. Top spinner Prabath Jayasuriya climbs 3 places to the 6th position in the ICC’s Men’s Test Bowling Rankings after his impressive 8-wicket haul in the one-off Test against Afghanistan: another bowler, Asitha Fernando also rises 7 spots to 34th position, after taking 6 wickets in the same match.