January 05, Colombo (LNW): Several spells of showers will occur in Northern and Eastern provinces.
Showers or thundershowers will occur at several places elsewhere after 2.00 p.m.
Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces during the morning.
The public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
By: Staff Writer
January 05, Colombo (LNW): Sri Lanka government is to deploy a ship from the Sri Lanka Navy on the Red Sea area, extending support for the strengthening of security in the region against Houthi activities.
The decision of President Ranil Wickremesinghe has been taken amidst rising concerns among international shipping companies regarding attacks by Iranian-backed Houthi militants in the Red Sea.
President Wickremesinghe noted that Sri Lanka will provide a Navy vessel to fight attacks by Houthi rebels on merchant ships in the Red Sea, joining countries like India in protecting the key waterway for global trade.
The Iran-backed Houthi rebels have launched more than 20 attacks on merchant ships in recent weeks, claiming to take revenge against Israel for its military campaign against Palestinian terror group Hamas in Gaza.
President Wickremesinghe, who holds the defence ministry portfolio, noted that merchant shipping was hit by Houthi attacks at the Red Sea and said if the ships were to be diverted and re-routed around South Africa, the voyages would become much more expensive.
This could create (an) escalation of the cost of goods. “So we have agreed to send a Naval vessel to combat Houthi attacks in the Red Sea,” he said.
The Houthis claim to be retaliating against Israel’s military campaign in support of Hamas.
This ongoing disruption in the Red Sea has resulted in increased freight costs and delayed delivery times.
The government will have to bear the cost of US$ 200 million for deploying and maintaining a ship from the Sri Lanka Navy on the Red Sea area,
Although it was announced as a commitment to safeguard maritime navigation and contribute to regional stability, the heavy cost for the Navy vessel will be a burden for the Sri Lankan taxpayers, political and defence analysts said.
The president outlined the apparent risks to global trade posed by the Houthi rebels and highlighted the importance of Sri Lanka’s contribution to regional stability.
The naval deployment is portrayed as a proactive measure to address potential disruptions to maritime commerce, underlining Sri Lanka’s role as a responsible player in the international community, informed sources said.
The government defends the expenditure, claiming that it is a necessary investment in national security and the protection of economic interests.
Officials emphasized the need of maintaining open and secure sea lanes for Sri Lanka’s trade, which heavily relies on maritime routes.
However, defence analysts question the urgency of the naval deployment, suggesting that alternative diplomatic and economic measures could achieve similar objectives without the excessive cost.
By: Staff Writer
January 05, Colombo (LNW): Civil Society group highlights IRD website lacks a Security Sockets Layer Claims vulnerability could expose website and citizen’s data open to security threats such as cyber attacks
They asked IRD for clarification regarding absence of an SSL and information on measures taken to ensure data security.
The Citizen’s Collective, a civil society group, expressed serious concerns about the security of data on the Inland Revenue Department’s website in a written communication sent recently.
The organisation noted that on observation it found that the Department’s website http://www.ird.gov.lk lacks a Security Sockets Layer (SSL), an encryption-based Internet security protocol.
The group highlighted that this vulnerability could expose the website to various security threats, including cyber-attacks such as Man-in-the-Middle attacks, where an attacker could interact with users while posing as the Inland Revenue Department.
The organisation highlighted that implementing an SSL is crucial as the website not only provides tax information but is now actively facilitating the tax registration of citizens. It also noted an SSL is also vital to safeguard sensitive data and maintain public trust.
The group urged the Department to provide clarification regarding the absence of an SSL and to outline the measures taken to ensure the security of citizens’ data.
The security concern has been raised at a critical time as the Government has mandated individuals over the age of 18 to register with the Inland Revenue Department and obtain a Tax Identification Number (TIN) before 1 February.
Amidst the security issues of Inland revenue dept web site, State Minister of Finance Ranjith Siyambalapitiya announced the temporary suspension of the Rs. 50,000 fine specified by legal provisions for individuals failing to comply with Tax Identification Number (TIN) requirements.
However, this revelation is in contrast to the Inland Revenue Department’s recent notice, cautioning that individuals not obtaining a TIN could face penalties, potentially reaching Rs. 50,000 with enforcement scheduled to commence from 1 January 2024.
The conflicting statements have sparked discussions about the coherence of Government directives regarding TIN compliance and associated penalties.
Despite the legal requirement for individuals over 18 years to obtain a TIN, Siyambalapitiya clarified that a non-compliance fine will not be implemented at present citing the importance of balancing fiscal measures.
Siyambalapitiya highlighted that the intention of the tax reform is not to oppress the people.
“Although certain tax measures were implemented to boost the Government’s revenue, it is not to impose unnecessary financial burdens on the citizens,” he added.
The State Minister underscored that obtaining a TIN does not automatically translate to an obligation to pay taxes.
He specified that only individuals with a net monthly income of Rs. 100,000 or more are required to pay income tax.
January 05, Colombo (LNW): Litro Gas Lanka, has yet again secured a triumphant win at the National Occupational Safety and Health Excellence Awards 2023, marking a milestone moment in the company’s journey.
The accolades garnered in multiple categories—Best Fleet Safety Management System, Manufacturing (Small/Medium Sector), and Other (Small/Medium Sector)—stand as a testament to Litro’s unwavering dedication to safety and excellence.
Litro Gas Lanka Chairman Muditha Peiris said: “The Litro Gas Lanka team is deeply honoured to receive these prestigious awards, which accentuate our unwavering commitment to safety and excellence. This recognition is a testament to the collective dedication and tireless efforts of the entire Litro family. We remain steadfast in our mission to prioritise safety across all operations and continue delivering reliable products to our valued customers.”
“Litro Gas Lanka extends its sincere gratitude to the institute for organising this event and for fostering a culture of safety and excellence,” he added.
At Litro, safety has always been a top priority. These awards reaffirm the company’s commitment to maintaining the highest safety standards across all its operations. The recognition received in the category of Best Fleet Safety Management System underscores Litro’s dedication to ensuring safety not only within its manufacturing units but also throughout its transportation and delivery.
Moreover, securing accolades in the Manufacturing (Small/Medium Sector) and Other (Small/Medium Sector) categories reaffirms Litro’s commitment to embedding safety practices at every level of its operations. It highlights the company’s holistic approach to ensuring a safe working environment, thereby setting a benchmark for others within the industry.
Litro Gas Lanka’s success at the National Occupational Safety and Health Excellence Awards 2023 serves as an inspiration and a guiding light for the industry. It showcases that a relentless focus on safety, coupled with a commitment to excellence, can lead to outstanding achievements and recognition on a national stage.
This triumph reaffirms Litro Gas Lanka’s position as a leader in the industry and its continuous dedication to fostering a culture of safety, not just within the organisation but also in the broader community. The company remains steadfast in its pursuit of excellence, aiming to continually raise the bar and set new benchmarks in safety standards.
January 05, Colombo (LNW): President Ranil Wickremesinghe has proposed an ambitious plan to transform the Victoria Dam in Kandy and its surrounding area into a prominent tourist destination, marking a significant leap in the region’s tourism landscape.
Recognized as the tallest dam in the country, the Victoria Dam stands as a cornerstone achievement of the accelerated Mahaweli development project. Commissioned in 1985 and named after Queen Victoria, the dam’s inauguration was presided over by President J.R. Jayewardene and Prime Minister Margaret Thatcher.
As part of the new development initiative, plans are underway to erect a statue of Queen Victoria in close proximity to the dam, commemorating its namesake and historical significance.
The development project is currently in progress, with Central Province Governor Lalith Gamage conducting an inspection of the site’s advancements on the 4th of this month. Governor Gamage emphasized that further enhancements aimed at positioning this area as a prime attraction for both local and international tourists will pave the way for new income opportunities for local residents.
The envisioned transformation of the Victoria Dam area into a tourist hotspot not only celebrates its engineering marvel but also promises to offer visitors an enriched experience while creating economic prospects for the local community.
January 05, Colombo (LNW): The Urban Development Authority (UDA), in collaboration with the Asian Development Bank, is poised to inject over Rs. one billion into transforming Sigiriya/Dambulla and Trincomalee into thriving tourism hubs.
Minister Prasanna Ranatunga highlighted that this pivotal project faced setbacks due to the COVID-19 pandemic and subsequent economic challenges. However, the government aims to kickstart this initiative by allocating an initial investment of Rs. 320 million this year. The primary objective is to convert specific locations within Sigiriya/Dambulla and Trincomalee cities into designated tourism zones while facilitating necessary infrastructure development.
Besides enhancing infrastructure, the project emphasizes the preservation and development of historically significant sites. “Creation of new car parks and similar initiatives will significantly bolster tourism revenue, particularly benefiting stakeholders in these regions,” Minister Ranatunga stated, adding that consultations with regional provincial councils and relevant ministries have been initiated to gather diverse perspectives for this project’s success.
The Trincomalee segment of the project encompasses six sub-projects aimed at comprehensive development. These include plans for Dutch Bay and Back Bay Beach Development, preservation and enhancement of Fort Frederick, the establishment of public facilities for hot springs, construction of floating restaurants, and the creation of eco-parks.
Furthermore, the project outlines strategies for improving Powder Island and Crow Island Areas, modernizing Colonial Buildings, including the Trincomalee Port Head Office Premises, to uplift the aesthetic and functional appeal of these locations.
January 05, Colombo (LNW): Sri Lanka’s automotive industry is experiencing a remarkable upswing, with more than 108 varieties of locally assembled vehicles dominating the nation’s roads. This diverse lineup includes luxury cars, trucks, military vehicles, three-wheelers, and motorcycles, reflecting a burgeoning local manufacturing landscape.
Thilaka Jayasundara, Secretary of the Ministry of Industries, highlighted the sector’s progress, emphasizing the increasing prominence of the automobile component manufacturing industry. “It’s not just a revenue generator; it’s becoming a significant contributor to our FOREX reserves,” Jayasundara stated.
Key players like VEGA INNOVATIONS, Mahendra, and Micro Car have significantly contributed to this momentum. VEGA INNOVATIONS has ventured into crafting luxury vehicles, while Mahendra and Micro Car have introduced various vehicles to the Sri Lankan market. The government is actively encouraging these manufacturers to pivot towards assembling electric vehicles, a shift that is gaining traction.
Jayasundara underlined the industry’s global impact, noting that local component manufacturers are now exporting to major companies like Toyota and Tesla, diversifying Sri Lanka’s export portfolio. The implementation of the Standard Operating Procedure (SOP) for local vehicle assembly and component manufacturing, initiated by the Ministry of Industries four years ago, has been pivotal in fostering a thriving ecosystem. With over 100 local manufacturers now operating, this SOP has not only generated export revenues but has also led to substantial savings, estimated to exceed Rs. 200 billion annually from reduced vehicle and spare parts imports.
Furthermore, the SOP has empowered existing local manufacturers, such as tire, battery, exhaust component, rubber part, and cushion makers, by securing larger orders and improved prices. The government’s strategic plan includes establishing a specialized automobile component manufacturing zone in Katana, earmarking 100 plots of land to attract foreign companies for joint ventures, streamlining logistics for industrial operations.
Addressing the need for industrial land allocation, Jayasundara emphasized plans to increase it from less than 0.4% to 1% by 2025, facilitating industry growth.
Highlighting additional government initiatives, Jayasundara discussed President Ranil Wickremesinghe’s Green initiatives. The goal is to introduce environmentally friendly practices to 1,000 SMEs in the industry. She also shed light on the industry’s heavy reliance on foreign raw materials, citing special measures taken during economic crises to ensure the continuity of imports through the Indian credit line. Efforts were made to address temporary restrictions on over 1,000 items, easing the burden on local industries amidst dollar scarcity.
January 05, Colombo (LNW): The Sri Lankan Rupee demonstrated stability against the US Dollar at commercial banks across Sri Lanka today (Jan 05), maintaining its position compared to Thursday’s rates.
At Peoples Bank, there’s been no alteration in the buying and selling rates of the US Dollar, standing firm at Rs. 316.77 and Rs. 327.81, correspondingly.
Similarly, Commercial Bank reported unchanged figures, with the buying rate of the US Dollar holding at Rs. 316.41 and the selling rate remaining constant at Rs. 326.50.
Sampath Bank also echoed this trend, sustaining stability with no fluctuations in the buying and selling rates of the US Dollar, maintaining Rs. 318 and Rs. 327, respectively.
January 05, Colombo (LNW): The Sri Lankan government is on the brink of unveiling a game-changing regulatory landscape for moneylending and microfinance enterprises with the imminent introduction of the Microfinance & Credit Regulatory Authority Bill. Anticipated to make its debut in parliament next week, this legislation is poised to revolutionize the financial sector’s approach to microfinance.
This forthcoming bill holds the pivotal objective of shielding consumers from exploitative practices prevalent in the industry, concurrently fostering a culture of responsible lending among financial institutions.
One of the significant moves underlying this legislative endeavor involves the proposed annulment of the existing Microfinance Act of 2016.
By: Staff Writer
January 05, Colombo (LNW): The loans and advances portfolio of the Licensed Finance Companies (LFCs) sector contracted significantly during the year ending Q3 of 2023, particularly due to the restrictions on vehicle imports which affected leasing and hire purchase activities.
Amidst the decline in the core business, the LFCs sector diversified its activities particularly towards pawning/gold loan facilities which heightened the sector’s risk to fluctuations in global gold prices.
The asset quality of the sector also deteriorated as indicated by the increase in stage 3 loans to total loans ratio.
Meanwhile, overall liquidity of the sector remained at an acceptable level while few companies faced difficulties in meeting liquidity requirements. Exposure of the LFCs sector to the sovereign also increased amidst rising investments in Government securities.
Moreover, the sector recorded an increase in profit, driven by higher revenue from interest income and other operating income along with reduced new impairment charges while capital adequacy also improved, with higher growth in regulatory capital compared to subdued growth in risk weighted assets, mainly due to the contraction of loans and advances amidst higher exposure to pawning/gold loans advances and increase in risk-free investments.
Successful implementation of the Masterplan for Consolidation of Non-Bank Financial Institutions (NBFIs) introduced by the Central Bank in the latter part of 2020 helped to build the confidence of the sector. However, the continued need for consolidation exists in the LFCs sector to ensure resilience
The Financial Sector Safety Net Project is designed to boost the financial and institutional capacity of the Sri Lanka Deposit Insurance Scheme (SLDIS), which is managed by the Central Bank of Sri Lanka.
The financing will help boost reserves of SLDIS which could be used towards the payout to insured depositors of banks and licensed finance companies.
In parallel, the project will support institutional strengthening of the SLDIS in line with international good practices for effective deposit insurance schemes.
“Strengthening the financial sector safety net is crucial for maintaining financial stability during a macro-debt crisis,” said Alexander Pankov, Lead Financial Sector Specialist and the Task Team Leader for the project.
“A robust deposit insurance system, along with enhanced supervision and resolution frameworks, will safeguard public confidence in the financial system and protect people’s savings.”
The SLDIS was established in 2010 and has conducted several payouts for failed licensed finance companies in recent years.
Currently, the SLDIS guarantees the deposits of households and enterprises up to LKR 1,100,000, which covers more than 90 percent of deposit accounts in Sri Lanka.
The legal framework for deposit insurance in Sri Lanka was upgraded earlier this year through the approval by Parliament of Banking Special Provisions Act.
SLDIS should now be strengthened institutionally and financially for it to be able to effectively fulfill its legal mandate of protecting the financial sector stability.
