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Dollar rate in Sri Lanka today(Jan 24)

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January 24, Colombo (LNW): As of today (January 24), the Sri Lankan Rupee maintains its stability against the US Dollar at commercial banks in Sri Lanka, with rates holding steady compared to Tuesday.

At Peoples Bank, there has been a slight decrease in both buying and selling rates of the US Dollar. The buying rate dropped from Rs. 314.56 to Rs. 314.07, while the selling rate decreased from Rs. 325.52 to Rs. 325.01.

According to Commercial Bank, the buying rate for the US Dollar remains unchanged at Rs. 313.93, and the selling rate also remains steady at Rs. 324.

Sampath Bank reports no changes in the buying and selling rates of the US Dollar, with both rates holding steady at Rs. 315 and Rs. 324, respectively.

CEB Initiates Actions Against Protest Participants

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January 24, Colombo (LNW): The Ceylon Electricity Board (CEB) has taken steps against employees who participated in recent protests against the restructuring of the board. According to Deputy General Manager Noel Priyantha, the CEB has sent letters seeking explanations to nearly 10,000 employees who reported sick leave and took part in the protests. Further actions will be determined based on the responses received from the employees.

In response to the protests, the services of 66 employees have already been suspended by the CEB. The protests were organized in opposition to the restructuring measures being implemented within the Electricity Board.

Ranjan Jayalal, Convenor of the United Trade Union Front of the C.E.B, has expressed strong opposition to the actions taken by the CEB. He warned of strict measures against what he perceives as the repression of employees who participated in the protests.

Cardinal Malcolm Ranjith Challenges Anti-Terrorism Bill, Citing Constitutional Concerns

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January 24, Colombo (LNW): His Eminence Malcolm Cardinal Ranjith has filed a petition challenging the Anti-Terrorism Bill introduced by the government to replace the Prevention of Terrorism Act (PTA). In the petition submitted to the Supreme Court, Cardinal Ranjith requests an order declaring that several provisions of the Anti-Terrorism Bill are inconsistent with the Constitution.

The respondent named in the petition is the Attorney General, and it alleges that the proposed legislation, if enacted in its current form, would confer unlimited powers to the Tri-Forces, Police, and Coast Guard, allowing unwarranted arrests without reasonable suspicion. The Cardinal argues that this would violate fundamental rights, including the freedom of expression guaranteed by the Constitution.

To address these concerns, Cardinal Ranjith seeks a Supreme Court order mandating a parliamentary vote with a two-thirds majority and a referendum to pass the Anti-Terrorism Bill, which was tabled in parliament on January 10.

This legal challenge comes in the wake of growing opposition to the bill, with last week seeing a petition by Wasantha Samarasinghe, the president of the Inter-Company Employees’ Union, also seeking a Supreme Court order declaring certain provisions unconstitutional.

The Anti-Terrorism Bill, approved by the Cabinet of Ministers on September 05, 2023, underwent revisions based on suggestions and opinions from various parties before being presented in parliament. Despite these revisions, the bill has sparked controversy both domestically and internationally. Human rights organizations, including the Office of the High Commissioner of Human Rights (OHCHR), have urged the government to align the proposed legislation fully with Sri Lanka’s international human rights obligations.

Sri Lanka Original Narrative Summary: 24/01

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  1. TNA MP M.A. Sumanthiran stresses that the on-going debate on the Online Safety Bill was illegal and in violation of the Standing Orders of Parliament: Parliament nevertheless proceeds with the debate following a majority vote in favour of considering the contentious Bill for discussion.
  2. Ceylon Motor Traders’ Assn warn the new 18% VAT on used vehicles creates a black market in the industry & increases the market prices of used vehicles: stresses this is hurting the common man: laments it places a hurdle on legitimate companies as vehicle prices surge by an additional 18% due to the new VAT.
  3. President Ranil Wickremesinghe returns to the island after a 11-day overseas visit: he first participated at the World Economic Forum in Switzerland: thereafter, he participated at the 19th Summit of Heads of State of the Non-Aligned Nations and the 3rd Summit of the G77 & China, in Uganda.
  4. Ven Athuraliye Rathana Thera, MP from the “Apey Janabala Party” whose Leader/President Saman Perera was murdered in Beliatte, says he will refrain from commenting on the murder.
  5. Government Medical Officers Association says the doctors will commence an indefinite strike from 8.00 am today as the Govt has temporarily suspended the payment of the “Disturbance, Availability & Transport” allowance: latest reports however indicate that the strike has been called off.
  6. CB Monetary Policy Board maintains the Standing Deposit Facility Rate and the Standing Lending Facility Rate of the Central Bank at the current levels of 9.0% & 10.0%.
  7. Supreme Court sets 30th October’24 as the date to consider the Fundamental Rights Petitions which have claimed that the rights of members of EPF & ETF have been violated as a result of the Govt’s Domestic Debt Re-structuring: the 3-member Judge Bench comprises of Justices S Thurairaja, Shiran Gooneratne & Mahinda Samayawardhena.
  8. Likely Presidential Candidate from the Mawbima Janatha Party Dilith Jayaweera says the current economic pressure and the country’s situation is nothing like what was faced 20 years ago when there was a JVP insurrection & LTTE terror: reminisces that during such period, he was selected to the university but had to wait 3 years since the universities were closed.
  9. A 45-year-old Buddhist monk, Ven Kalapaluwawe Dhammarathana Thera shot dead inside a temple in the Malwathuhiripitiya area of Gampaha: Police say the shooting carried out with a T-56 assault rifle: 4 unidentified individuals had arrived in a car, carried out the shooting and fled the scene.
  10. Siblings Matheesha Marambe from Royal College and Kithmi Marambe from Bishop’s College lead the 9-member SL Diving team at the upcoming BIMSTEC Youth Aquatic Meet in New Delhi: SL diving team to consist of 5 boys and 4 girls: notably, all 5 male divers hail from Royal College.

Asian Internet Coalition Challenges Sri Lanka’s Online Safety Bill

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January 24, Colombo (LNW): The Asian Internet Coalition (AIC), representing major global Internet and technology companies, has strongly disputed statements made by Sri Lanka’s Minister of Public Security, Tiran Alles, regarding the Online Safety Bill. In a statement released on Tuesday (23rd), the AIC cautioned that the current form of the bill is deemed unworkable and could hinder the potential growth and foreign direct investment in Sri Lanka’s digital economy.

Jeff Paine, Managing Director of the Asia Internet Coalition, addressed the Minister’s statements, asserting that they do not accurately portray the substantial contributions the AIC has made throughout the legislative process. Paine highlighted the AIC’s efforts, including comprehensive submissions and engagements such as hosting representatives from the Ministry of Public Security at the AIC’s annual Online Safety Forum in Singapore.

Despite their commitment to constructive collaboration, the AIC expressed concern about not being informed about proposed amendments to the bill. The coalition unequivocally maintained its position that the current version of the Online Safety Bill is impractical and has the potential to undermine the growth and foreign direct investment in Sri Lanka’s digital economy. The AIC emphasized the need for extensive revisions to align the bill with global best practices.

The AIC, comprised of influential companies like Apple, Pinterest, Google, Amazon, and Meta, plays a crucial role in promoting understanding and resolution of Internet policy issues in the Asia Pacific region. The coalition’s statement reflects its dedication to fostering a regulatory environment that supports innovation and sustainable development in the digital landscape.

Fair weather will prevail over the island

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January 24, Colombo (LNW): There is a possibility of ground frost at some places in Nuwara-Eliya district during the early hours of the morning.

Misty conditions can be expected at some places in Sabaragamuwa, Central, Western and Uva provinces and in Galle and Matara districts during the morning.

Colombo High Court sets date for verdict on ex DSI Group Director’s lawsuit alleging unlawful dismissal and financial fraud

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January 23, Colombo (LNW): The Colombo High Court on January 19 ordered that the declaration of the verdict on the lawsuit filed by Gihan Sajith Rajapaksha, one of the former directors of DSI Group, demanding an interim order barring him from being unlawfully dismissed from the positions of Managing Director and Director of several companies owned by the Group, be made on February 08, 2024.

This was when the case was taken up before High Court Judge Priyantha Fernando.

The Court also ordered that the petition be called in on February 02, 2024 for the statement of facts on behalf of the other directors of DSI Group, including Kasun Rajapaksha, Thusitha Rajapaksha, Bathiya Amarakoon, Nelani Rajapaksha, Anura De Silva, and Asanka Rajapaksha, who are cited as respondents to the petition.

Chandaka Jayasundara PC appearing for Sajith Rajapaksha argued that his client has been removed from the positions he had held uninformed, in clear violation of the Companies Act and in violation of fundamental justice.

The company navigated by Mr. Rajapaksha had archived over 60 per cent of net profit in comparison to the rest of the companies held by the Group, and the parties chairing other companies, the respondents, had acted in maliciousness to oust him in response to his brilliant performance, he told Court.

Jayasundara PC further informed Court that Kasun Rajapaksha, the current Managing Director of DSI Group, and Dilshan Rajapaksha had notoriously opened offshore shoe businesses and committed fraud, paving the way for money outflow, in violation of the parent group’s fiscal regulations. In the backdrop, the total loss incurred by the Group amounts to over Rs. 400 million, he emphasised.

Sajith Rajapaksha’s lawyers further elaborated that a staggering financial misappropriation of Rs. 104 million through Dubai-based Azamaq Novelties Trading LLC, of Rs. 120 million through Aussie-based Y Communications QLD PTY LTD, and of Rs. 70 million through UK-based Lakeland Footwear International Limited was committed by the respondents in the aforementioned manner.

Further, the respondents had invested in India via Samson Footwear Private Limited, incurring a loss, and over Rs. 1 billion of bonds had been retrieved from the parent group via Premier Synthetic Leather Manufacturing (Pvt) Ltd, lawyers appearing for Mr. Rajapaksha added.

In the backdrop, the most profit-making business owned by the Ranatunga Rajapaksha family, in which Sajith Rajapaksha is a member, was subjugated to arbitrary acquisition, whilst ousting Sajith from his rightful positions, they asserted before Court.

The chain of events may drive DSI Group, which shelters tens of thousands of breadwinners, into a serious crisis in the near future, facts unveiled before Court demonstrated.

How Bond Traders became Billionaires?

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Opinion By: Adolf

The situation in the country, particularly with regard to the economy and politics, can be described as stable but stagnant. The economy is stable in that it has not experienced further economic collapse in comparison to the kind witnessed last year when international bankruptcy was admitted. But the economy still continues to contract, with a contraction of over 11 percent taking place in the beginning part of the year. The shortages of goods and power sources that brought the people on to the streets in angry protest have not recurred. The government’s ability to bring down the rate of inflation and eliminate shortages is recognized, though the shrinking demand due to price increases is continuing to debilitate living standards. The much hyped Domestic Debt Restructuring was a  damp squib bordering on fraud. The Debt restructuring should have been extended for all to improve debt sustainability and equity. No educated business analyst can fathom why they left out even those outside the banking sector for they are going to make a killing. Overnight several bond kings have now been created . What was the crazy reason to raise 10 year bonds and issue them at 30 percent? People were jailed for doing it at doing 5 y bonds at 11% .The yields the buyers expected to be reprofiled but they have been left out ( unbelievable )- on what grounds is this justified? Someone must go to court . The sorry saga started with the CBSL default. That made Sri Lanka a bankrupt nation . To date no action has been taken against Nandalal Weerasinghe for this arbitrary decision . Further, the differential tax justification does not make any sense – epf being taxed at 14 percent hence they needed to be reprofiled makes no sense.  Banks paying 50 percent is incorrect – corporate tax rate is 30 percent and financial vat is 18 percent. So banks are not excessively taxed as implied. As for moratoriums they did accommodate many borrowers but what other choice did they have – if they foreclosed the recovery value would be very low for liquidation yields lower recovery and if such a large number of businesses were to be foreclosed on the asset sales would have crashed the collateral market – land, cars and businesses.

Interest Rate

The CBSL in a crazy way doubled borrowing rates overnight one year ago . SMEs we’re forced borrow at over 30% . In addition penalties we’re charged . People were willing to stomach it because they expected a haircut on the coupon or deposit rates because of the crazy interest rate policy of CBSL. It was done Nandalal publicly said to control inflation . When we were effectively importing inflation . The inflation creation was not within the country. The DDO therefore very surprisingly did not touch the TBs or the Bonds. Now imagine the money a few people will make at the expense of the tax payers, SMEs and the public. CBSL interest policy has effectively destroyed the livelihoods of over 500000 people according to estimates and destroyed over 25% of the SMEs, all for nothing. The opposition was hanged publicly for unfair bond trading . What do you call this stupidity ? Who is behind this? They must be named and shamed. The crazy interest policy of the CBSL starting from the sovereign default last year to the crazy interest rates to DDR . These actions must be investigated by a commission. The 2022 interest rate policy of the CBSL was the craziest policy intervention in the history of the CBSL. populist . The domestic debt restructuring should have been part of a broader policy package that effectively addressed the underlying economic problems and debt vulnerabilities. At least now whilst the banks, primary dealers and individuals savor their windfalls ( First Capital Holdings PLC (the Group) announces its outstanding financial performance for the first quarter ended June 30, 2023. The Group reported an impressive Profit after Tax of Rs. 2.81 billion, marking a remarkable leap from Rs. 96 million recorded in the same period last year.7 days ago ) In the absence of any common sense at least the government should bring the borrowing rates to manageable levels given that the 1 year deposit rates are now 9-10% . Unfortunately the reluctance to take action to recoup the losses from he bond traders has resulted in a surge of tax and vat for the common man. What the CBSL does not understand is that the tax payers have to service the bond issued at the crazy  in the name of controlling inflation.

Apparel sector recovers amidst highest ever performance in December

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By: Staff Writer

January 23, Colombo (LNW): The apparel sector in Sri Lanka is recovering following the decline in exports confronted with substantial obstacles, including multi-year lows in exports and an ongoing downward trajectory.

In April, exports plummeted by 24% to $318 million, exacerbating the year-on-year decline of 17% to $1.5 billion in the first four months of 2023. This decline affected all major markets.

Apparel exports now appear to be showing signs of rebound with December marking the highest ever performance in a year though the industry ended 2023 with negative growth.

Exports in December amounted to $ 415.6 million as per provisional data from the Joint Apparel Association (JAAF). The December 2023 figure is the highest since December 2022’s tally of $ 451 million.

In 2022, apparel exports averaged over $ 500 million between June and August, before slump began due to global factors such as reduced spending capacity associated with high inflation and recessionary concerns as well as high inventory in most of the major markets

Total exports in 2023 amounted to $ 4.5 billion, down 19% from the industry’s best year in 2022 when exports soared to $ 5.6 billion.

Several factors contribute to this challenging situation, including heightened market inventories and escalating costs in Sri Lanka.

 Industry experts note that Sri Lanka’s apparel sourcing has become comparatively expensive, leading customers to seek lower-cost alternatives in countries like Bangladesh, Egypt, and African nations. The country’s loss of competitiveness is evident through higher prices and longer lead times, dissuading potential buyers.

“We would expect 2024 exports also to be $ 4.5 billion with the second half seeing some uptick,” a spokesman for JAAF said. “Cost competitiveness and ease of doing business are key along with macro-economic stability,” he added.

While overall exports to the USA decreased by 22.32% to $ 1.8 billion, exports to the EU (excluding exports to UK) were down 17.4% to $ 1.4 billion. Exports to the UK in 2023 dipped by 12.6% to $ 627 million and to other countries by 17.7% to $ 707 million.

In December exports to the USA were down by 4.97% to $ 175 million, to the EU (excluding UK) by 13% to $ 121 million. Exports to the UK market saw a welcome but marginal increase of 1.7% $ 54.4 million whilst to other markets exports were down by 13% to $ 65 million. In November too exports to the UK improved by 20% year on year to $ 48 million.

In the first 11 months of last year, imports of textiles and textile articles declined by 23.6% to $ 2.2 billion.

IT professionals launch SMS ‘e-Referendum’ on the Online Safety Bill

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By: Staff Writer

January 23, Colombo (LNW): A group of senior IT professionals has warned that the Online Safety Bill may be used to cripple opposition election campaigns, suppress journalists reporting on corruption and even severely impact the IT industry.

IT Professionals for the People (IT4P) has also launched an SMS “e-referendum”, which allows Sri Lankans to use an SMS message to voice their concerns on the Online Safety Bill and other key policies.

IT Professionals for the People (IT4P) has warned that the Online Safety Bill may cripple election campaigns, suppress journalists and negatively impact the IT industry.

They have therefore launched an SMS “e-referendum”, allowing Sri Lankans to use an SMS message to voice their concerns on key policies such as the Online Safety Bill.

The group pointed out that Sri Lanka already has seven laws that place restrictions on free speech and therefore the Online Safety Bill is not necessary.

Thus, citizens can participate in the SMS e-referendum by sending an SMS message to 0767 001 001 as OSB YES, if the bill should be passed in parliament, or as OSB NO, if the bill should not be.

The project is part of a broader Direct Democracy Initiative, which can one day lead to citizens being able to directly vote on government policies. This system is particularly useful when citizens believe that political representatives are no longer in alignment with their interests

“Under this law, any person aggrieved by something a citizen says online, may go to the police or magistrate court against them. Such a person may become a suspect in a criminal case, subject to investigations, have material/devices seized and may be liable to imprisonment or a fine.

In addition to this, many online services the IT industry relies on (e.g. Google Apps, Office 365, AWS), if interpreted as “internet intermediaries” according to this bill, may face potential legal liabilities and compliance costs that may force them to consider partially or fully exiting Sri Lanka,” the IT$P said in a statement yesterday.

“Finally, this bill criminalises defamation. Around the world, defamation is a civil matter between two parties (i.e. no imprisonment/fines, only compensation may be asked for).

Sri Lanka already has 7 other acts that place restrictions on free speech. Law enforcement is already ill-equipped to enforce these laws. Adding a new law creates opportunity for misuse, potentially floods the court system with frivolous petitions, not to mention the expense of establishing a new commission.”

Further elaborating the e-referendum, the IT4P stated that, ‘implemented through a leading telecom provider, the solution allows any Sri Lankan mobile subscriber to send an SMS to the number 0767 001 001 with a poll code followed by “yes” or “no”.

 Ongoing polls will be published on social media and the organisation’s website, it4psrilanka.org.

SMS was chosen over a web/mobile solution mainly to curtail bots that is a common problem in online polling.