By: Staff Writer

January 15, Colombo (LNW): The telecom arm of Reliance Industries Jio Platforms,, has expressed interest in buying a stake in Sri Lanka Telecom PLC, the state-owned telecommunication company.

The financially-stressed Sri Lankan government is looking to privatize several sectors of the economy to raise money. Colombo had invited proposals from potential investors from November 10.

Post the deadline on January 12, the Sri Lankan government issued a press release, naming Jio Platforms, Gortune International Investment Holding Ltd, and Pettigo Comercio International LDA as the three potential bidders, adding that proposals will be “evaluated as per the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers”.

The island nation is also mandated by International Monetary Fund (IMF) programmes to push for privatisation of non-core sectors.

With Sri Lanka Telecom, Jio is eyeing a strategic foothold in the neighbouring market.

Brokerage BofA has pegged Jio Platforms’s valuation at $107 billion. BofA in a note said it expects Jio Platforms to continue adding subscribers this year while making deeper inroads with its advanced feature phone JioBharat and wireless broadband device JioAirFiber.

Three submissions in total were received earlier for the Request for Qualification (RfQ) on the divestment of shares in Sri Lanka Telecom PLC, the Finance Ministry disclosed yesterday.

Accordingly, Jio Platforms Ltd. in Gujrat, India, Gortune International Investment Holding Ltd., c/o Capital Alliance Ltd. and Pettigo Comercio International LDA., c/o NDB Investment Bank Ltd. submitted their offers.

On 10 November 2023, the Government, acting through the Ministry of Finance, Economic Stabilization, and National Policies, released an RfQ via international and local media. The RfQ sought interested parties for the divestiture of the Government’s shares in Sri Lanka Telecom PLC. The submission deadline for proposals concluded recently.

The evaluation of the RfQs will adhere to the Special Guidelines on Divestiture of State-Owned Enterprises, a framework approved by the Cabinet of Ministers in July 2023.

The International Finance Corporation (IFC) acts as the Transaction Advisor for the divestiture of shares held by the Government in Sri Lanka Telecom PLC.

By: Staff Writer

January 15, Colombo (LNW): The Colombo Port City Economic Commission (CPCEC) has acknowledged that it lacks the authority to establish duty-free rules, at the duty-free malls, in the Port City and pledged to revoke the already set regulations within a week.

This pledge was given to the Committee on Public Finance (COPF) by the CPCEC at the recent committee meeting chaired by Dr. Harsha de Silva MP.

Reconsideration of Colombo Port City Economic Commission Act, No. 11 of 2021 for the 3rd Consecutive Time Sparks Strong Displeasure: CoPF Raises Concerns over major blunder and Lack of Accountability.

The Committee on Public Finance reconsidered the Regulations under Section 71 read with Section 52(5) of the Colombo Port City Economic Commissions Act, No. 11 of 2021.

This was reconsidered at the Committee on Public Finance held recently (Jan. 09) under the Chairmanship of. (Dr.) Harsha de Silva.

In the course of examining the legality of Duty-Free Rules issued by the Port City Commission for Duty-Free Malls during a prior Committee meeting, the Committee sought the opinion of the Attorney General.

As a result, it was revealed that the Commission lacks the authority to establish such rules, highlighting a policy inconsistency that could lead to market distortion and potential cannibalization.

The officials from the Port City Commission, who were present, acknowledged the error and assured that the rules would be revoked by the end of this week.

However, when the Committee sought clarification on the individual responsible for these erroneous decisions, considering that the Port City Commission had entered agreements with four investors based on these rules, there was a noticeable absence of accountability.

The Committee expressed strong dissatisfaction during the inquiry, as no official stepped forward to take responsibility.

In light of the evident lack of clarity and accountability and the issues brought to the forefront, the Committee was of the opinion that a thorough reconsideration of the mentioned Regulation was warranted.

Consequently, the Committee directed the Ministry of Investment Promotion to identify the responsible party and outline measures to prevent similar errors in the future. This action was deemed essential to safeguard against potential discouragement of future investments.

Furthermore, the Committee on Public Finance considered Gazette Extraordinary No. 2334/39, as per Section 24 of the Board of Investment (BOI) of Sri Lanka Law, No. 4 of 1978.

This gazette outlines a proposal by the BOI to amend regulations, permitting non-BOI or Section 16 BOI companies to attain Section 17 approval with exemptions for specific sectors and criteria.

Such amendments would expedite Foreign Direct Investments and facilitate collaborations between foreign companies and existing BOI entities, enabling them to benefit from customs duty exemptions.

After meticulous examination, the Committee approved the aforementioned Regulation to be presented to Parliament. This decision was made with confidence, as the proposed amendments maintained consistent thresholds for companies registering for Section 17, ensuring there were no discrepancies introduced.

By: Staff Writer

January 15, Colombo (LNW): Sri Lanka is to bring in the new Microfinance bill after a delay of 3 years amidst reports of businesses providing microfinance credit with over 360% interest as the Government tries to curb licensed credit providers, State Minister of Finance Shehan Semasinghe.

Tabling the Microfinance and Credit Regulatory Authority Bill at Parliament on Friday (12), he said that according to the bill, no business, collective or individual can lend microfinance credit without a licence from the regulator.

The State Minister said that according to a survey done by the Samurdhi Department in the Anuradhapura district, 95% of the borrowers who are struggling with microfinance debt were women. At the same time, the majority of the credit was taken for consumption purposes.

“They don’t know what they are signing, their financial literacy is very low. Microfinance credit issues are gradually moving towards a big crisis,” he added.

According to the Finance Ministry, there are about 11,000 microfinance institutions in Sri Lanka as of 2023 November out of which only 4 have registered with the Central Bank.

Semasinghe said that the Government under former President Gotabaya Rajapaksa tried to bring in the Microfinance bill in 2021 to solve the issues in microfinance after bringing in all the relevant parties such as the Central Bank of Sri Lanka, the Finance Ministry and Lanka Microfinance Practitioners’ Association, which has a membership of 47 microfinance businesses.

“However, it was not able to be brought to Parliament due to the instability that happened in the country, especially due to the political instability,” he said.

He said that through the new Act, the Government expects to formulate the regulatory framework to regulate businesses that provide money on credit and Microfinance businesses while attention has also been given to the inclusion of businesses that provide credit online.

According to the bill, the Board of the Authority shall consist of the Secretary to the Treasury or his representative who shall be a Deputy Secretary to the Treasury nominated by the Secretary to the Treasury who shall be appointed as the Chairperson.

The Deputy Governor of CBSL in charge of financial system stability and the Registrar of Voluntary Social Service Organizations or his representative not below the rank of a Deputy Registrar of Voluntary Social Service Organizations will be other members .

Also, four members appointed by the Minister of Finance shall be appointed to the said Board where two members shall possess academic or professional qualifications and have experience in the fields of banking, finance, microfinance, accounting, law, administration or any other relevant discipline.

Two other members will be nominated by the Governor of CBSL who shall possess academic or professional qualifications and have experience in the fields of banking, finance, microfinance, accounting, law, administration or any other relevant discipline.