Colombo (LNW): President Ranil Wickramasinghe is set to introduce three groundbreaking proposals at the upcoming United Nations Climate Change Conference, COP 28, scheduled to take place in Dubai, United Arab Emirates, from November 30 to December 12, 2023.
The primary proposal involves the establishment of the International Climate Change University (ICCU) in Sri Lanka, a move aimed at fostering global collaboration in addressing climate change challenges.
In addition to the ICCU initiative, President Ranil Wickramasinghe will advocate for the creation of a Climate Justice Forum. This forum is intended to address the concerns of vulnerable and developing nations adversely affected by the actions of developed countries.
Furthermore, another proposal seeks to establish a Tropical Belt Forum specifically dedicated to addressing issues related to tropical rainforests.
The COP 28 conference, featuring leaders from 54 states, will be hosted in Dubai, where extensive discussions on climate change and debt stabilisation are planned.
The high-level segment for the delivery of national statements by Heads of State and Government is scheduled to occur during the World Climate Action Summit on December 1 and 2.
Amidst the participants, 20 young Sri Lankans sponsored by various non-governmental organizations will actively engage in the COP 28 conference and related forums.
Heading the 15-member government delegation is President Ranil Wickramasinghe, accompanied by key figures such as Foreign Minister Ali Sabry, Power and Energy Minister Kanchana Wijesekera, Environment Minister Keheliya Rambukwella, MP Patali Champika Ranawaka, Environment Ministry Secretary Dr. Anil Jasinghe, Presidential Adviser on Climate Change Ruwan Wijewardena, and Director of International Affairs to the President Dinouk Colombage.
Additionally, a private sector contingent, motivated by the ‘Aragalaya’ (struggle) Movement, will independently participate in the conference, emphasising the movement’s call to provide international exposure to young individuals passionate about combating climate change.
According to Ruwan Wijewardena, the President’s Senior Adviser on Climate Change, this initiative reflects a broader commitment to empowering the youth and fostering a global perspective on environmental challenges.
Colombo (LNW): The government expresses readiness to conduct overdue Provincial Council elections contingent upon opposition consensus on the electoral system, Prime Minister Dinesh Gunawardena told Parliament.
Addressing concerns raised by opposition members advocating different systems, he emphasised the need for a unified agreement, citing proposals for elections under both old and new systems, as well as a constituency-based approach.
“Opposition MPs are making a different proposal on the system under which the Provincial Council elections are to be held. We can hold the elections if they agree on the system under which the Provincial Council elections are to be held,” Gunawardena told the Chambers today (28).
He added: “Some Opposition members say the Provincial Council elections should be held under the old system and others under the new system. A constituency system is also important. No party has come to an agreement at the select committee on the Provincial Council elections.”
Chief Opposition Whip Lakshman Kiriella and SJB MP J.C. Alawathuwela expressed their party’s preference for the old system and willingness to support an amendment aligning with that approach.
Colombo (LNW): Minister Bandula Gunawardena has announced plans to convert the Sri Lanka Rupavahini Corporation (SLRC) and the Sri Lanka Broadcasting Corporation (SLBC) into a public company due to continuous losses incurred by both entities.
The decision was disclosed during a meeting of the Ministerial Consultative Committee on Mass Media, where Minister Gunawardena presented financial statistics from 2015, revealing losses of Rs. 277 million for SLRC and Rs. 457 million for SLBC in 2023.
Considering the financial challenges and the difficulty of obtaining funds from the Treasury, the government plans to appoint a committee to oversee the conversion.
Additionally, concerns were raised about inadequate publicity for government development projects in state media, prompting Minister Gunawardena to emphasise the need for public media to highlight public inconveniences and project-related facilities.
The Sri Lanka Press Council has been instructed to prepare a report on regulating media propaganda that may negatively impact social culture and personal health.
Colombo (LNW): The Sri Lankan Rupee (LKR) indicates another wave of depreciation against the US Dollar today (28) in comparison to yesterday, as per the official exchange rates list issued by the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US Dollar has increased to Rs. 324.11 from Rs. 323.63, and the selling price to Rs. 334.11 from Rs. 333.70.
The LKR, meanwhile, indicates depreciation against several other foreign currencies, including Gulf currencies, as well.
Colombo (LNW): The people of Sri Lanka should base their decisions on proper data and facts and not on noise, lies and propaganda, and Sri Lanka cannot afford another political mistake like that of January 2015, said former President and Leader of the Sri Lanka Podujana Peramuna (SLPP) Mahinda Rajapaksa, in his official response to the recent Supreme Court ruling on the 2019 – 2021 administration being held accountable for the current economic crisis in the country.
In a statement, the former President emphasised that during his nine years as President, the economy showed robust growth, averaging 6 per cent annually, leading to a threefold increase in Sri Lanka’s per capita GDP from US $ 1,242 in 2005 to US $ 3,819 in 2014.
He highlighted that the debt to GDP ratio was a healthy 69 per cent in 2014, a significant improvement from 90 per cent in 2005. Rajapaksa noted that after he left office, economic growth declined, reaching negative levels in 2019.
He pointed out that Sri Lanka’s debt increased substantially, with total outstanding external debt rising to US $ 54,811 million by the end of 2019.
Whilst avoiding the 4/5 Supreme Court majority’s view on paying attention as to whether ‘the conduct of the respondents‘ of the Fundamental Rights (FR) petition filed against the Gotabaya Rajapaksa Administration ‘during the relevant period directly contributed to the crisis,‘ the former President went on attributing the economic decline to mismanagement and criticising the accumulation of foreign commercial debt, particularly International Sovereign Bonds (ISBs), during the post-2015 period.
Rajapaksa urged the public to base decisions on accurate data and facts, emphasising the need to avoid political mistakes like those in January 2015.
Full Statement:
The origins of Sri Lanka’s economic crisis
A heated discussion is now taking place about those responsible for the present economic crisis. Central Bank reports will show that during my nine years as President, economic growth averaged 6% a year during the four war years from 2006 to 2009. This increased to 6.8% in the five post-war years from 2010 to 2014. Hence Sri Lanka’s per capita GDP increased threefold from USD 1,242 at the end of 2005 to USD 3,819 by the end of 2014. The contribution that my government made to Sri Lanka’s per capita GDP was well over twice that of all other post-independence governments from 1948 to 2005 put together. Though the per capita GDP came down to USD 3,474 in 2022 as the pandemic caused the economy to contract, that statement remains valid to this day.
The debt to GDP ratio was a very healthy 69% at the end of 2014 having being brought down from 90% at the end of 2005. The All Share Price Index rose from 1,922 at the end of 2005 to 7,299 by the end of 2014. This economic boom was achieved despite the war, the global food crisis of 2007, the global financial crisis of 2008-2009 and the highest crude oil prices in world history. Crude oil cost an average of USD 74 per barrel throughout the entire period from 2006 to 2009 and an average of USD 103 from 2010 to 2014. The IMF Country Report No. 14/285 of September 2014 stated firstly that Sri Lanka’s “Macroeconomic performance has generally exceeded expectations”. Secondly that “Sri Lanka has made notable advances in recent years, and appears to be on its way to joining the ranks of upper middle income countries”. Thirdly that “Sri Lanka’s economic growth has been among the fastest in Asia’s frontier and developing economies in recent years”.
Hence the fact that I left behind a very robust economy in January 2015 is well documented. After I was voted out, the economic growth rate dropped to 4.2% in 2015 and ended up in the negative range at 0.2% below zero by 2019. Sri Lanka’s total outstanding external debt had increased by nearly 28% from USD 42,914 million at the end of 2014, to USD 54,811 million by the end of 2019. The debt to GDP ratio which had been brought down to 69% by the end of 2014, had increased to nearly 82% by the end of 2019. The All Share Price Index declined from 7,299 at the end of 2014 to 5,990 by the end of October 2019. Yet during the entire five year period from 2015 to 2019 the average price of crude oil was USD 60 per barrel – the lowest in recent history.
There were no external reasons for Sri Lanka’s economic decline between 2015 and 2019. India and Bangladesh experienced average growth rates in excess of 7% and the Maldives over 6% during this period. Even developed countries like the USA and Germany experienced robust economic performance during those years. However, Sri Lanka’s average growth rate between 2015 and 2019 was just 3.5%, equal to the growth rate recorded in 2021 at the height of the pandemic. The accumulation of foreign commercial debt between 2015 and 2019 particularly in the form of International Sovereign Bonds (ISBs) was by far the worst disaster to befall us during that period.
When I was defeated in January 2015, outstanding ISBs amounted to USD 5,000 million and it was amply covered by our foreign reserves of USD 8,208 million. However, between 2015 and 2019 outstanding ISBs increased threefold to USD 15,050 with borrowings of USD 2,150 million in 2015, USD 1,500 million in 2016, USD 1,500 million in 2017, 2,500 million USD in 2018 and USD 4,400 million in 2019. Of this, USD 2,000 million was used to rollover ISB’s taken during my tenure, thus the total amount in new ISB’s issued between 2015 and 2019 is USD 10,050 million. Despite the build-up of the stock of outstanding ISBs to USD 15,050, Sri Lanka’s total foreign reserves was just USD 7,642 million at the end of 2019.
Thus, when I became Prime Minister again in November 2019, our government inherited an economy that was already on its last legs. It was in this weak and vulnerable situation that the Covid-19 pandemic hit Sri Lanka in early 2020 – the consequences of which needs further discussion. In any discussion of the economy, it is vital to note that the per capita GDP is the most fundamental economic indicator used to judge the economic situation of a country and the contribution of my 2006-2014 government to increasing Sri Lanka’s per capita GDP is more than double that of all other post- independence governments put together. The people of this country should base their decisions on proper data and facts and not on noise, lies and propaganda. Sri Lanka cannot afford another political mistake like that of January 2015.
Mahinda Rajapaksa M.P. Leader Sri Lanka Podujana Peramuna
Colombo (LNW): Ambassador Dhammika Kumari Semasinghe recently presented Letters of Credence, officially accrediting her as Sri Lanka’s Ambassador Extraordinary and Plenipotentiary to the Republic of Bulgaria, a statement by the Sri Lankan Embassy in Warsaw said.
Her residence is based in Warsaw, Poland. The presentation ceremony took place at the Presidential Palace in Sofia on November 22, 2023, where Ambassador Semasinghe met with President Rumen Radev of Bulgaria.
During the meeting, Ambassador Semasinghe conveyed greetings and best wishes from President Ranil Wickremesinghe to President Radev. She expressed Sri Lanka’s commitment to revitalising bilateral engagement and explored avenues for increased cooperation in various sectors, including ICT, agriculture, labor, education, tourism, and manufacturing.
Ambassador Semasinghe highlighted opportunities for Bulgarian investors and businesses, emphasising Sri Lanka’s emergence as a vital logistics hub in the Indian Ocean region.
President Radev welcomed the accreditation of Sri Lanka’s envoy, considering it a timely impetus to reactivate bilateral ties. He proposed enhancing engagement at political, institutional, people-to-people (tourism and education), and business-to-business levels.
President Radev recognised Sri Lanka’s strategic commercial importance in the emerging economic landscape of Asia and expressed Bulgaria’s interest in strengthening and expanding relations with Sri Lanka.
As part of the discussions, President Radev expressed interest in Sri Lankan niche products and cuisine, envisioning their availability to the Bulgarian people. Ambassador Semasinghe shared details about the established Sri Lankan health-food store “Ceylon Spice” and the Sri Lankan restaurant “rCurry – Sri Lankan Cuisine” in Sofia, Bulgaria’s capital.
The formal ceremony was attended by Foreign Policy Secretary to the President of Bulgaria, Mr. Roussi Ivanov, and Deputy Minister of Foreign Affairs (career diplomat), Mr. Tihomir Stoytchev. Prior to the ceremony, Ambassador Semasinghe presented copies of Letters of Credence and Recall to Deputy Foreign Minister Tihomir Stoytchev at the Foreign Ministry.
During her official visit to Bulgaria, Ambassador Semasinghe had meetings with Mr. Tsvetan Simeonov, President of the Bulgarian Chamber of Commerce and Industry, Mr. Piyatissa Perera, proprietor of the Sri Lankan boutique “Ceylon Spice,” and the proprietor and team of the Sri Lankan restaurant “rCurry – Sri Lankan Cuisine.”
Ambassador Dhammika Kumari Semasinghe, currently serving as Sri Lanka’s envoy to Poland, boasts a 27-year diplomatic career, having served in various capacities in the political, economic, and multilateral sections of the Foreign Ministry. She has also held positions in Sri Lanka Missions in New York, Washington, DC, and New Delhi.
Ambassador Semasinghe holds a Master’s in International Public Policy from the School of Advanced International Studies (SAIS), Johns Hopkins University, Washington DC, USA. She began her undergraduate studies at the University of Peradeniya and completed her BA degree in International Relations and Public Policy at Swarthmore College, Pennsylvania, USA. Ambassador Semasinghe hails from Thimbiriyawa in the Nikaweratiya Pradeshiya Sabha in Sri Lanka’s North Western Province.
Colombo (LNW): The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) revealed on Friday (24) a large-scale fraud of over Rs. 5 billion committed by suspects in connivance with officers of the Department of Motor Traffic before the Colombo Chief Magistrate’s Court.
The Commission filed a “B” report, presenting a jeep before Chief Magistrate Prasanna Alwis, alleging that the Toyota jeep had been registered under a lorry chassis number to evade paying customs duty and taxes to the State.
The bribery investigators informed the Magistrate that the first registration was made on 3 July 2007, while the jeep in Japan had not been imported to Sri Lanka at the time of registration.
The agency disclosed that they had taken into custody the Toyota jeep with registration number HG 5087, which was imported to Sri Lanka on forged documents, from a car dealership in Kurunegala.
Further investigations conducted by the Commission revealed that following the first registration made on 3 July 2003, the suspect had obtained revenue licenses for the Toyota jeep for subsequent years 2003, 2004, and 2005.
Their investigations unveiled that the schemers had imported more than 200 vehicles in this manner, causing a loss of more than Rs. 5 billion to the state.
The Commission presented the accused mastermind, M.D. Liyanage of No. 197, Dambulla Road, Kurunegala, before the Magistrate and informed the court that they are conducting further investigations into the scam. The Magistrate ordered the suspect to be remanded.
Meanwhile Government audit officers have unearthed a massive racket of registering vehicles by presenting forge documents to the department.
Several super luxury vehicles had been brought down to the country some times back.
The government audit has also conducted investigations into 23 more vehicles imported to the country, a senior official of the Finance ministry said.
The Sri Lanka Customs had to incur a heavy loss of millions of rupees due to the illegal importation of these super luxury vehicles while the government lost a large sum of money due to illegal vehicle registration.
It has been revealed that these vehicle registrations had been made by destroying files containing Customs and other documents of these vehicles and inserting false information into the computer system of the Motor Traffic Department, during the last few years.
Government auditors have made a request from the Commissioner General to hand over all the files pertaining to illegal vehicle registration. The issue of illegal vehicle registration was not new, the official said.
Colombo (LNW): A massive five housing schemes with 1,996 housing units will be built in Colombo and suburbs with Chinese assistance for veteran journalists, versatile artistes and low income families.
These 1,996 housing units are scheduled to be built over a three-year period, with the Chinese Government giving major financial support of 552 million Yuan (about Rs. 24.48 billion) for this project.
A dispute between the Colombo Municipal Council (CMC) and the Urban Development Authority (UDA) over land has delayed the China-funded housing scheme for low-income city dwellers
Housing and Construction Minister Prasanna Ranatunga said both institutions should reach an understanding regarding the land in the Dematagoda area for the project to be implemented.
The UDA took over these two plots of land in 2019, but the CMC initiated legal action.However, the judiciary has informed both parties to settle the dispute amicably as two state bodies.
China has also requested the land dispute to be resolved before the implementation of the project. The matter has now been settled.
Construction is scheduled to begin in March. The construction is scheduled to begin in March 2024.
Of the total houses, 1,888 houses are for low-income individuals residing in Colombo, while 108 houses are for artists and journalists.
The agreement to build these houses was signed by Chinese Ambassador Chi Shenhong and Minister of Urban Development and Housing Prasanna Ranatunge.
The distribution includes 615 houses in Peliyagoda Dutugemunu Road, 586 houses in Dematagoda Elumaduwa Estate, 575 houses in Moratuwa Battery Estate, 112 houses in Maharagama Ambowatta, and 108 houses in Kottawa Orchard with the latter reserved for artists and journalists.
The Minister said the housing initiative stands as a testament to the long-standing friendship and collaborative efforts between China and Sri Lanka.
Ranatunga also acknowledged Chinese Government support during challenging times, highlighting their unwavering friendship.
In response, Chinese Ambassador Chi Shenhong reiterated commitment to supporting Sri Lanka’s social and economic development.
He highlighted significant contributions China has extended to Sri Lanka, exceeding 100 projects aimed at improving the economic and social well-being of the Sri Lankan people.
The ambassador reaffirmed China’s readiness to further assist Sri Lanka in enhancing the socio-economic status of its citizens.
The event witnessed the presence of key officials, including the State Minister of Urban Development and Housing Tenuka Widanagamage, Ministerial Secretary W.S. Satyainanda, UDA Chairman Nimesh Herath, Director General Prayasad Ranaweera, and a group of officials.
Colombo (LNW): The outcomes of the 2023 GCE Ordinary Level Examination are set to be disclosed within the upcoming two to three days, Education Minister Susil Premajayantha said.
In light of this, the Minister indicated that the 2024 GCE Ordinary Level Examination is anticipated to take place in either May or June next year.
He added that comprehensive preparations have been undertaken in anticipation of the upcoming examination.
The Education Minister shared these details during a media briefing.
Colombo (LNW): Sri Lanka’s apparel exports hit by high production costs due to electricity bill hike and other overheads recorded 20 year-on-year (YoY) decline to US $ 330.95 million in October
The Joint Apparel Association Forum (JAAF) anticipates a decrease of approximately one billion dollars in this year’s apparel and textile export earnings compared to last year.
Amid the rising inflation and interest rates, consumer demand in Sri Lanka’s key apparel export markets has faltered.
In addition, Sri Lanka has become expensive for apparel sourcing, due to the higher production cost, stemming from the sharp rise in electricity tariffs and other input costs.
Sri Lanka’s apparel industry has called for government support to expand the country’s apparel export markets, through bilateral and other types of trade agreements.
Particularly, the apparel manufacturers have called to fast-track the efforts to improve the market access to India.
Dhammika Fernando, Chairman of the Federation of Free Trade Zone Investors, has said that twenty percent of some large-scale garment factories have been closed for a period of three months after December.
He also claims that about fifty percent of the small and medium scale factories have been closed.
The income of investors in the garment sector has fallen by 25percent due to the decrease in orders received from Sri Lanka and the increase in costs.
He also claims that some local investors are looking into the possibility of investing in other countries based on this situation.
Some investors have paid compensation to employees and fired them, and so far about 10 large-scale companies have fired workers in this way.
Several company owners have given their employees full or half salary and kept them at home, and some factories are working only 4 days a week, the chairman has said.
According to the Joint Apparel Association Forum (JAAF) data, exports to all major markets fell during October, amid the slowdown in orders.
Exports to Sri Lanka’s biggest apparel market, the United States, fell 16.81 percent YoY to US $ 128.22 million while exports to the EU, excluding the UK, declined 24.79 percent YoY to US $ 110 million.
Exports to the UK experienced a YoY decline of 14.56 percent, amounting to US $ 43.66 million, whereas exports to other markets saw a more significant decrease of 21.69 percent, totalling US $ 49.07 million.
The cumulative exports for the January-October 2023 period fell 20.5 percent YoY to US $ 3,748.72 million.
Apparel is Sri Lanka’s largest industrial export and earned US $ 5.95 billion in 2022. The country’s apparel sector has about 300,000 employees, most of whom are women.
