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Sri Lanka Plans to Broaden Tea Industry Strategy.

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By: Staff Writer

January 06, Colombo (LNW): The government is to device tea industry strategy for 2024 with an integrated approach to achieve common industry objectives, refocusing the entire tea value chain

Sri Lanka is currently reviewing the entire length of the country’s tea value chain seeking to restore profitability with environmental sustainability, according to Sri Lanka Tea Board officials.

Tea Board will look at tea as a beverage in the global market, worth US $38 billion as compared with narrow perception of the tea industry as a perennial crop, generating only $1.45billion per year

Tea export volume dipped below 2022 levels, reaching around 242 million kilos in 2023, whilst earnings increased to around $ 1.3 billion during the same period.

As per the available data, January-November 2023 cumulative exports totalled 221.16 million kilos, showing a decrease of 9.73 million kilos vis-à-vis 230.89 million kilos in the same period in 2022.

The SLTB was optimistic that the tea output will exceed 260 million kilos by the end of 2023 recovering from the 26-year low in 2022.

A high official of SLTB has attributed the decline in output to adverse weather conditions from September to December 2023, emphasizing that most of the production came from Regional Plantation Companies (RPCs) rather than traditional smallholders due to high operational costs.

Sri Lanka is to focus on strategic market campaigns on tea-consuming nations rather than focusing on global campaigns till production and productivity are achieved.

Expressing concern about the lack of technological integration in the tea industry, a senior tea board official called upon top players with financial backing to explore alternative ways, including AI and drone technologies to enhance crop yields.

SLTB plans to make use of the powerful Tea Control Act to enhance production and productivity in regional plantation corporations ( RPCs) _.
“Sri Lanka has a diverse tea production suitable for different water types to enhance taste and nutritional properties. These can be marketed according to various market segments to generate higher income from tea exports,” he said.

He stressed the responsibility of exporters to convince growers to prioritize producing high-quality Ceylon Tea.

China has emerged as Sri Lanka’s fastest-growing “new market” with interest in traditional Orthodox black tea and high-end packaging common amongst the increasing number of Chinese tourists visiting Sri Lanka,”.

SriLanka now supplies 29% of the 35 million kilograms that China imports, according to official data.

Due to U.S. sanctions that restrict trade in dollars, Iran turned to Sri Lanka and India to quench its thirst for tea. Iraq now ranks first among Sri Lanka’s tea trading partners, which include Turkey, Russia, China, the UAE, and Saudi Arabia.

SL tax net to be widen with nearly one million individuals obtained TIN.

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By: Staff Writer

January 06, Colombo (LNW): The Inland Revenue Department is resolute in reaching its target of widening the tax net while increasing the number of tax files with the registration of persons of over18 years issuing them with taxpayer information number.

The number of individuals registering with the Taxpayer Identification Number (TIN) in Sri Lanka has reached nearly 01 million, according to the Inland Revenue Department.

Previously, in the fiscal year 2022, there were only 204,467 personal tax files. However, the latest data indicates a remarkable surge, with the number now approaching the one-million mark.

Moreover, the Department reported a notable up tick in the number of tax-paying companies.

This year has witnessed a commendable 10 percent increase, with the count rising from 73,444 registered tax-paying companies in 2022 to a current total of 81,909 as of November 30 2023 .

The Inland Revenue Department’s task of collecting over Rs 1 trillion from taxes on Income and profit of 219.000 individuals and companies next year will be a mission impossible, a former treasury secretary who wished to remain anonymous said.

The government will be taking several stringent measures including legal action against those who fail to file tax returns and make the Taxpayer Identification Number (TIN) mandatory for several transactions.

These transactions included the opening of a bank current account at any bank; obtaining approval for a building plan, by the applicant, registering a motor vehicle or renew license, by the owner and for the Register a land or title to a land, by the buyer.

A special penal provision will be introduced to prosecute persons who have failed to file tax returns and provide information required by the tax official

A unique identification number is to be made mandatory for the registration of businesses and all businesses including health services, educational services and law firms have to be registered with relevant authorities at the time of commencing their businesses

Everyone above the age of 18 years failing to obtain a Taxpayer Identification Number (TIN) would be liable to a fine of Rs 50,000, the Inland Revenue Department said

In addition, anyone earning an income of more than Rs. 1,200,000 a year of assessment (from April 01 to March 31 of the following year) has to register for Income Tax.

Failure to comply with the regulations would lead to a situation where the registration will be done by the Inland Revenue Department but with penalties not exceeding Rs. 50,000.

The TIN could be both obtained by visiting the IRD in person or online. To obtain a TIN through electronic service, every individual must submit PDF copies of the scanned images of both sides of his or her national identity card, the IRD has said.

State Minister Unveils Renewables Push and Anticipated Electricity Bill Reduction

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January 06, Colombo (LNW): State Minister Indika Anuruddha revealed significant advancements in the power sector, announcing that data submitted to the Public Utilities Commission may pave the way for a revision of electricity bills by the first week of February.

During a media briefing at the Presidential Media Center (PMC) themed “Collective Path to a Stable Country,” the state minister outlined plans to procure around 600 megawatts of electricity from renewable sources in 2024.

He highlighted strides made in 2023, emphasizing the revision of the Electricity Act to prioritize consumer service and protection. Efforts toward augmenting renewable energy’s share in power generation were underscored, aiming for 70% electricity from renewable sources, with special focus on solar panel construction in projects below 10 megawatts across locations like Mannar, Pooneryn, and Hambantota.

The state minister stressed the commitment to reducing electricity bills through renewable energy utilization, leveraging hydro, solar, and wind power. Submissions to the Public Utilities Commission aimed at supporting this reduction foresee a potential decrease either by month-end or in early February.

Amid these initiatives, new employee recruitment for the Ceylon Electricity Board (CEB) has been paused. The minister highlighted future performance-based incentives and promotions for employees, ensuring pension and provident fund structures remain unchanged.

Former Health Official Arrested in Connection to Substandard Vaccine Import

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January 06, Colombo (LNW): Herath Kumara, the former Deputy Director of Health Services (supplies division), has been arrested by the Criminal Investigations Department (CID) today in relation to the importation of substandard Immune Globulin vaccines. He is set to appear before the Maligakanda Magistrate’s Court.

This arrest follows investigations into the importation of 22,500 vials of substandard vaccines, allegedly involving financial fraud amounting to Rs. 130 million. The probe, initiated last year, unveiled a scheme where a pharmaceutical company facilitated the import using forged documents, with the purported aid of senior state officials.

Sudath Janaka Fernando, operating under the alias ‘Aruna Deepthi,’ was identified as the owner of the said pharmaceutical company responsible for importing the substandard stock.

Further investigations implicated Chief Executive Officer of the National Medicines Regulatory Authority (NMRA), Dr. Vijith Gunasekera, and Ministry of Health’s Director of Supply, Dr. Kapila Wickramanayake, for allegedly providing forged ministry documents to facilitate the importation.

Previously, former Health Ministry Secretary Janaka Chandragupta was arrested in connection with the case. Additionally, in December 2023, the CID took a statement from former Health Minister Keheliya Rambukwella regarding the importation that transpired during his tenure.

Operation Yukthiya Nets 1,133 Suspects in Latest Round of Arrests

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January 06, Colombo (LNW): In the latest phase of Operation Yukthiya, authorities apprehended 1,133 additional suspects within a 24-hour period ending at 12:30 am on Saturday (06).

Police have confirmed that among those apprehended, 24 individuals are currently undergoing interrogation following detention orders. Investigations into illegal assets have been initiated against 23 of the suspects.

Further, 38 individuals have been redirected to drug rehabilitation centers as part of the operation’s efforts.

Additionally, 86 suspects listed by the Police Narcotics Bureau and Special Bureau were among those arrested, as the operation continues its concerted efforts to address various criminal activities.

Sunil Handunnetti Foresees People’s Willingness to Bear VAT Burden Until Potential Elections

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January 06, Colombo (LNW): Sunil Handunnetti, former Member of Parliament from Janatha Vimukthi Peramuna and economic expert representing the National Peoples Power (NPP), shared insights on the public’s readiness to endure the current VAT burden until a potential presidential election in August.

In an interview with Neth FM channel, Handunnetti addressed the unprecedented scenario of appointing a successive president through a parliamentary vote for a brief tenure. He highlighted the necessity for constitutional interpretations to manifest as practical implementations aligning with the populace’s readiness to tolerate the VAT burden until August.

Anticipating a potential presidential or general election, Handunnetti emphasized the procedural requisites, citing the need for parliamentary passage with a majority. He pointed out the reluctance of some individuals to relinquish privileges, indicating a reluctance to resign even for political reasons.

Sri Lanka Original Narrative Summary: 06/01

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  1. Public Security Minister Tiran Alles says steps will be taken to present the Online Safety Bill to Parliament on 23rd Jan’24: also says “international” organizations, embassies and others are expressing opinions against the bill, but the Govt will not be influenced by such pressures.
  2. President Ranil Wickremesinghe said to be planning to prorogue Parliament on 27th Jan’24: also expected to address the nation through the House when it is convened after the Independence Day celebration on 4th Feb’24.
  3. President Ranil Wickremasinghe proposes to develop Victoria Dam in Kandy and the surrounding area as a major tourist attraction: the dam is named after Queen Victoria and was opened in 1985 by then President J R Jayewardene and then UK PM Margaret Thatcher.
  4. SL Navy Spokesperson says 189.38kg of ‘ICE’ with a street value of approximately Rs.1.8bn and 55.64kg of Heroin with a street value of approximately Rs.1.4bn were seized from a vessel off the coast of Galle.
  5. CID arrests Deputy Director of Health Services (Supplies Division) at the Ministry of Health, H B Herath over the alleged importation of substandard Immunoglobulins: Maligakanda Magistrate’s Court remands Herath until 10th Jan’24.
  6. CID informs Fort Magistrate’s Court that an investigation has been launched into Ruwan Prasanna Gunaratne, who allegedly promoted suicide via religious preachings and committed suicide recently.
  7. Police ask the public to notify them about any religious cults that manipulate or coerce people into adopting specific faiths that may pose a threat to their lives: notification to be done via their hotlines – “118” and “119”: clarifies that the Police has the authority to intervene if such incidents may lead to loss of life.
  8. President of the “Organisation of Relatives of the Disappeared during Military Conflicts” Sivanathan Jenita and a civil society activist taken into custody for organizing a protest against President Ranil Wickremesinghe’s visit to Vavuniya: these activists had raised black flags and protested at the Vavuniya Cultural Hall.
  9. Cement manufacturers say the maximum retail price of a 50kg bag of locally manufactured cement has been increased by Rs.150 with immediate effect: increase due to the imposition of the VAT on 1st Jan’24: new price – Rs.2,450 per bag
  10. Sri Lanka opening batsman Pathum Nissanka to miss the ODI Cricket series opening match against Zimbabwe as he is down with Dengue fever.

Sri Lanka’s Construction Sector Reels from VAT Hike, Sees 20% Surge in Expenses

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January 06, Colombo (LNW): M.D. Paul, Chairman of the National Construction Association of Sri Lanka, expressed deep concerns over the significant surge in construction costs, marking a 20% increase. This spike, attributed to the recent VAT hike effective from January 1, 2024, has created a dire crisis within the construction industry.

Paul highlighted the industry’s plight, emphasizing the adverse impact of including fuel under the VAT purview. The expansion of VAT applicability to various essentials, previously exempted, such as machinery, electricity, and light bulbs, has notably escalated construction expenses.

The consequential rise in costs, estimated at 20%, presents a challenging scenario for the construction sector, significantly impacting ongoing and future projects. The inclusion of these crucial construction components under VAT has amplified financial burdens and poses a considerable threat to the industry’s stability.

Embassy of Sri Lanka in Abu Dhabi Celebrates International Migrants Day

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The Embassy of Sri Lanka in Abu Dhabi – UAE celebrated the International Migrants Day on 18 December 2023 at the Embassy premises with the participation of Sri Lankan business community, remittance companies, professionals, technical experts, banks and women entrepreneurs. 

Addressing the gathering, Sri Lanka’s Ambassador to UAE Udaya Indrarathna highlighted the importance of celebrating  International Migrants Day which gives the opportunity to appreciate and honour the dedicated services of the migrant workers around the world. Referring to the unique challenges that the migrant workers are facing, the Ambassador emphasized the Sri Lanka government’s positive initiatives for the welfare of Sri Lanka expatriates living abroad. 

Further, Ambassador appreciated the commitment and generosity shown by the UAE authorities by opening doors for Sri Lankan nationals. “They contribute their skills and talents within the UAE’s diverse workforce.  Opportunities have not only provided employment but have also fostered mutual understanding and strengthened the bilateral ties between two countries”, he said.  

Ambassador Indrarathna added that the Sri Lanka Bureau of Foreign Employment together with the Ministry of Labour and Foreign Employment has undertaken several initiatives to support and protect Sri Lankan migrant workers abroad. 

He affirmed that the Embassy of Sri Lanka in UAE is fully committed to ensure the safety and welfare of the Sri Lankans in the UAE  fostering a sense of belonging and support in a foreign land. The Ambassador also extended gratitude and appreciation for the incredible contributions that migrant workers make to develop Sri Lanka’s economy.

Third Secretary of the Embassy Samantha Dhanayake delivered a speech on requirements of SLBFE registration, benefits and welfare facilities provided for migrant workers. 

Representing the Sri Lankan migrant workers in the UAE, Lokitha Karawita and Nilupul Kolambage addressed the gathering and shared their life experiences as migrant workers in the UAE. Micheline Ruth Fernando provided an insight into the life of the children of the migrant workers and also extended deep appreciation for the UAE for the opportunities given for all the migrant workers and their families to thrive and succeed in their chosen fields.

 Embassy of Sri Lanka 

 Abu Dhabi

January 06, Colombo (LNW): The Sri Lanka – Egypt Parliamentary Friendship Association (PFA) for the Ninth Parliament convened its inaugural meeting in Parliament, presided over by Speaker Mahinda Yapa Abeywardana. During the session, Deputy Speaker Ajith Rajapakse was nominated by MP Mohamed Muzammil for the role of Secretary, a proposal confirmed by MP Madhura Withanage.

Ambassador E. Rodney M. Perera calls on Finance Minister of Japan ahead of upcoming visit to Sri Lanka

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January 06, Colombo (LNW): A pivotal meeting was held between Sri Lanka’s Ambassador to Japan E. Rodney M. Perera and Finance Minister Shunichi Suzuki at the Ministry of Finance in Tokyo, ahead of the latter’s forthcoming official visit to Sri Lanka next week.  This formal meeting was pursuant to a brief exchange between Ambassador Perera and Finance Minister Suzuki had during the Garden Party hosted by Their Majesties the Emperor and Empress of Japan a month earlier. 

Expressing gratitude for the opportunity to meet the Finance Minister, Ambassador Perera extended his deepest appreciation to Minister Suzuki and his team for their visit and dedicated efforts towards assisting Sri Lanka’s economic restructuring initiatives bilaterally and in the international arena.  Ambassador Perera also emphasized Sri Lanka’s eagerness to modernize its economy, leveraging Japan’s experience and expertise from both the government and the corporate sectors. 

The upcoming visit by Finance Minister Suzuki signifies an important milestone in fortifying bilateral relations and advancing Sri Lanka’s economic prospects through collaborative efforts between the two countries.  

The visit by the Japanese Finance Minister to Sri Lanka, after a lapse of more than ten years, is in continuance of bilateral consultations on Sri Lanka’s debt restructuring process and efforts to reinvigorate economic cooperation between the two countries.  

Several important visits in the past eight months are paving the way for renewed efforts for expansion of cooperation in multiple sectors.  Following President Ranil Wickremesinghe’s visit to Tokyo in May 2023, Japan’s Foreign Minister Yoshimasa Hayashi undertook an official visit to Sri Lanka in July 2023, the first such high-level visit from Japan in more than four years.

Sri Lanka Embassy

Tokyo