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SL Browns Investments enters tea estate business in Kenya

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By: Staff Writer

Colombo (LNW): In a historic and landmark move, Sri Lanka’s Browns Investments PLC solidified its presence in Kenya officially by acquiring James Finlays’ extensive tea plantations spanning over 27,000 acres in Kenya, yesterday.

LOLC Holdings’ Browns Investments Plc (BIL) has bought 85% stake of James Finlay Kenya tea estates business.

Transfer of ownership was marked by a ceremony attended by Browns Investment PLC Director Kamantha Amarasekera, Bomet County Governor Prof. Hilary Barchok, James Finlays Chairman Philippe de Gentile-Williams and Sri Lanka’s High Commissioner in Kenya Dr. Kana V. Kananathan.

The deal was first announced in May this year, where an agreement was struck to acquire James Finlay Kenya tea estates business, except the Saosa tea extraction facility, by Browns Investments PLC.

James Finlay Kenya is Brown’s first investment in the Kenyan tea industry, which it sees as an exciting opportunity for growth. In December 2021, Browns acquired Finlays’ Sri Lankan tea estates business.

Browns is part of Ishara Nanayakkara-controlled LOLC Holdings PLC group of companies, which is one of the largest and most profitable listed corporations in Sri Lanka.

James Finlay Kenya Ltd except the Saosa tea extraction facility will remain under Finlays’ ownership and the business will continue to source leaf tea, timber and other services directly from James Finlay Kenya, meaning an uninterrupted service to existing customers.

Finlays said BIL was selected as the preferred buyer because of its strong legacy of guiding its tea estates to continued growth, but also its focus on doing so sustainably while supporting its workforce and local communities.

James Finlay Kenya is Brown’s first investment in the Kenyan tea industry which it sees as an exciting opportunity for growth.

According to a statement issued by Dr. Kananathan, the acquisition by Browns Investments has created optimism for the local community and the broader Kenyan economy.

“High Commissioner Kananathan and Browns Investments PLC Director Kamantha Amarasekera met Kenyan President Dr. William Ruto recently and briefed on the new investments and President Ruto assured the full support of the Kenyan government in the new venture,” the statement said.

Following the completion of the sale, under a new name, Browns intends to continue to run the business; it has been operating until now as a leading global supplier of Kenyan tea.

Dr. Kananathan commended Browns Investments for its substantial and invaluable contributions to Kenya’s economic landscape.

Particularly, he acknowledged the group’s substantial investments in Africa, recognising the positive influence on the local community and broader African society.

Browns Investments is one of the largest tea producing companies in Sri Lanka, having under its management a total of 49 plantations through Maturata Plantations Limited, Udupussellawa Plantations PLC and Hapugastenna Plantations PLC.

The company produces approximately 12 million kilogrammes of made tea annually.

‘No more excuses’: Commonwealth Secretary-General will call for accelerated action on climate crisis at COP28

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The Secretary-General, The Rt Hon Patricia Scotland KC, will lead the Commonwealth delegation at the United Nations Climate Change Conference (COP28) in Dubai to call for accelerated action on the climate crisis in light of intensifying threats to small and vulnerable member countries.

Scheduled from 30 November to 12 December 2023, the annual summit comes just months after Commonwealth environment ministers committed to accelerating climate action at their inaugural meeting, held alongside the 78th Session of the United Nations General Assembly in New York City.

The Secretary-General, who will deliver at least 20 speeches across the summit, will urge negotiators to deliver a transformative outcome at the summit.

This includes accelerating efforts to implement national climate plans mandated under the Paris Agreement, using the findings of the ‘global stocktake’ report to increase ambition and action, and delivering an inclusive, operational Loss and Damage Fund.

Secretary-General Patricia Scotland will officially open the Commonwealth Pavilion COP28, which will host about 40 events across the two weeks, demonstrating the Commonwealth’s ability to convene vital dialogues between governments, experts, businesses, youth leaders and civil society.

She will also meet with leaders and ministers from Commonwealth member countries and across the international community, to advance progress on emissions, finance, adaptation, biodiversity, oceans, health, innovation and the green economy. 

‘No more delays’

Ahead of the summit, the Commonwealth Secretary-General said:

“The worst predictions of climate change have become a daily reality. In the Commonwealth’s most vulnerable countries, fertile lands are turning to dust, wells are running dry, storms and floods are overwhelming communities, and the ocean is rising.

“This represents not only a threat to the health, welfare and survival of millions of people, but to our collective stability and economic prospects.

“Yet as climate change advances, the gap on emissions, finance and justice has widened, while the window for action continues to narrow. COP28 must close that gap.

“Every day of delay makes life more dangerous, and makes climate action more complex, challenging and expensive. There can be no more delays, and no more excuses – this is the time for implementation.”

“The health of us all and of our planet rests on a 1.5°C degree cap on global warming,” she added. “We cannot lose sight of that objective, and I implore leaders at COP28 to renew their determination to deliver a bright, resilient, sustainable common world – now and for generations to come.” 

During the summit, the Secretary-General will call for increased support for small and vulnerable states, highlighting that despite ambitious pledges, these countries are receiving limited funds to mitigate, adapt to and build resilience against the impacts of climate breakdown.

She will also draw attention to the broader consequences of the climate crisis on economic growth, leading to high debt burdens, food insecurity, stressed resources, and impaired livelihoods for many of the 2.5 billion people living across the Commonwealth.

Commonwealth response

Secretary-General Scotland will inform delegates at COP28 about the Commonwealth’s programme, designed to assist its member countries – including 33 small states – in dealing with the challenges posed by the climate crisis.

These include:

  • the Commonwealth Climate Finance Access Hub, which has mobilised US $310 million in climate finance for 17 vulnerable Commonwealth countries, with an additional US $500 million in the pipeline;
  • the Commonwealth Blue Charter, which is an agreement by all 56 member countries to actively co-operate to address shared ocean challenges;  

In light of 2023 being designated as the Commonwealth Year of Youth, the Commonwealth delegation will also host a series of events focused on promoting youth-led action on challenges posed by climate change. Please see the full schedule here.

Skilled OICs essential to combat underworld activities

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Colombo (LNW): The Sectoral Oversight Committee on National Security, chaired by MP Sarath Weerasekera, has discussed concerns regarding individuals hiring private security guards for personal protection, the Parliamentary Communications Department reported.

The committee acknowledged that the public faces challenges due to individuals escorted by private security, and while police legally cannot intervene in personal security matters, the use of weapons by private security personnel requires regulation.

The committee has decided to inform the Ministry of Defense to establish criteria for regulating private security services. Additionally, the committee addressed issues related to the rise of underworld activities, the need for competent police officers in crime prevention, drug control efforts, and the importance of strict law enforcement, particularly regarding the confiscation of property from drug traffickers.

The Police emphasised that having competent Officers in Charge (OICs) capable of identifying criminals in their designated areas can proactively prevent crimes. Consequently, efforts are underway to identify skilled police OICs and deploy them to their respective areas for service.

The chairman highlighted the significant loss of lives in road accidents and instructed the purchase of necessary equipment to identify drivers under the influence of drugs for police stations nationwide.

The committee further emphasised the importance of public vigilance to prevent robberies.

Members of Parliament and officials, including the Secretary to the Ministry of Public Security and the Inspector General of Police, were present at the meeting on 22 November 2023.

Immigration-Emigration Dept issues regulations on free visa regime for seven countries

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Colombo (LNW): The Department of Emigration and Immigration has issued a statement confirming the implementation of a free visa regime for seven countries including China, India, Indonesia, Russia, Thailand, Malaysia and Japan, with immediate effect, until 31.03.2024.

The free visa scheme will operate as a pilot programme to rebuild the tourism industry of the island nation, in compliance with the Cabinet decision 31/1885/602/023 dated October 24, 2023.

Gold attains six-month high in global market

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Colombo (LNW): Gold prices soared to a more than six-month high on Monday, surpassing the $2,000 per ounce mark, propelled by a weakened dollar and anticipation of a halt to US interest rate hikes, leading to increased demand, NDTV reported.

As of 1311 GMT, spot gold rose by 0.6 percent to $2,013.99 per ounce, marking its highest level since May 16. Similarly, US gold futures experienced a 0.6 percent increase, reaching $2,015.00.

The dollar exhibited a 0.2 per cent decline against a basket of major currencies, lingering near a more than two-month low recorded last week, making gold more affordable for holders of other currencies (USD/).

Craig Erlam, Senior Markets Analyst at OANDA, commented on the surge, stating, “Gold is flying, and to really explain it is the fact that it’s finally broken above $2,000 in a significant way.” He described the move as “purely technical,” driven by last week’s US inflation data and jobs report.

Gold prices currently exceed their 50-, 100-, and 200-day moving averages and are approximately $60 away from the all-time high of $2,072.49 set in August 2020.

Investor focus is on the release of revised US third-quarter GDP figures on Wednesday and the PCE price index, the Federal Reserve’s preferred inflation gauge, on Thursday.

Kyle Rodda, a Financial Market Analyst at Capital.com, emphasised, “Economic figures coming out of the US this week, both on the growth and inflation front, will make or break a case for whether gold remains above $2,000.”

Anticipation of an earlier-than-expected easing of monetary conditions by the Federal Reserve has heightened with recent data indicating a slowdown in US inflation.

Traders widely expect the Fed to maintain rates in December, while the CME’s FedWatch Tool indicates about a 60 percent chance of a cut in May next year.

Lower interest rates reduce the opportunity cost of holding non-interest-bearing assets, often boosting gold prices.

In the broader precious metals market, silver saw a 1.7 per cent increase to $24.71 per ounce, platinum experienced a 0.3 percent decrease to $927.64, and palladium rose by 0.8 per cent to $1,077.56 per ounce.

Dollar rate against LKR at banks today (Nov 28)

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Colombo (LNW): The Sri Lankan Rupee (LKR) indicates fluctuation against the US Dollar today (28) in comparison to yesterday, as per the exchange rates of leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has increased to Rs. 323.39 from Rs. 322.90, and the selling price to Rs. 334.66 from Rs. 334.15.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 321.98, but the selling price has increased to Rs. 333 from Rs. 332.50.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 324 and Rs. 334, respectively.

Strategies for sustainable water management and tariff restructuring underway

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Colombo (LNW): Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman has provided insight into the ongoing discussions regarding the establishment of a water tariff.

Speaking to a briefing at the President’s Media Centre (PMC) he emphasised that devising a formula that ensures the sustainability of the water board while also maintaining fairness for the general public would be of importance.

The government’s focus is on prioritising the major domestic category, which constitutes 75 per cent, and Samurdhi at 1.58 per cent, over industries, without exerting undue pressure on them.

Thondaman further noted that discussions are currently underway, exploring two parallel formulas—one centered on cost recovery and the other on cost reflection.

The final draft of the tariff formula is expected in December, with a commitment to avoiding unnecessary burden on the public. There is a possibility of an increased tariff rate for commercial institutions, with an emphasis on ensuring fair rates for charitable institutions, hospitals and schools.

To further deliberate on these crucial decisions, a meeting has been requested with Ministers Dilum Amunugama and Shehan Serasinghe. The outcome of these discussions will be communicated, leading to a vote on the proposed tariff.

Thondaman acknowledged the economic crisis affecting both foreign-funded and domestic-funded projects. He assured the public that new projects would kick-start in January, with a focus on completing existing projects. The government plans to engage in public-private partnerships to enhance water quality and reduce costs. The Minister clarified that while projects would involve private participation, there is no intention to sell or privatise water.

The Minister acknowledged operational losses, citing increased electricity prices and existing debt as contributing factors. However, he highlighted a silver lining—the reduction in water usage due to conservation efforts following a tariff hike. The Minister stressed the importance of a sustainable tariff formula that considers debt servicing and CAPEX (Capital Expenditure) but does not overburden the public.

Minister Thondaman discussed the government’s commitment to efficient water conservation, especially in areas with inadequate access to clean water. Plans for a desalination plant in Jaffna and efforts to prioritize water supply from villages and estates were highlighted. The Minister also emphasised the streamlining of the water resources management policy to implement a comprehensive water management plan.

The Minister refuted accusations of politicisation within the Water Board and clarified the appointment process for key positions. He assured that revenue for the Board has increased and discussed plans to explore renewable energy sources to reduce energy costs.

As the government works towards a stable tariff formula and sustainable water management, the Minister urged the public to understand the value of water and the necessity for a balanced approach to tariff reform.

The Minister concluded the press conference by reiterating the commitment to providing clean and accessible water to all citizens while ensuring financial viability in the water sector. The proposed reforms aim to strike a balance between the needs of the public and the economic realities faced by the water sector.

Sri Lanka Original Narrative Summary: 28/11

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  1. UNP General Secretary Palitha Range Bandara says President & UNP Leader Ranil Wickremesinghe is set to become the Presidential Candidate of a Coalition led by the UNP & the Party is to work on an Action plan drafted by its Working Committee ahead of the next Presidential Election.
  2. Minister of Education Susil Premajayantha says preparations have been finalised to supply sanitary napkins to girls in schools, starting next year.
  3. Sports Minister Roshan Ranasinghe says his life is at risk & in the event anything
    should happen to him, the President & Chief of Presidential Staff would have to take responsibility: also says he may be killed on the road & he’s not sure when it will happen: asserts he fought against corruption, but now he has to fight for his
    life: demands his right to live for the sake of his wife & children.
  4. President Ranil Wickremesinghe removes Sports, Youth Affairs & Irrigation
    Minister Roshan Ranasinghe from all posts in the Govt: Harin Fernando appointed as the new Sports Minister & Pavithra Wanniarachchi as the new Irrigation Minister.
  5. Colombo Stock Market falls to a four-&-a-half month low, riddled by sustained uncertainty: ASPI declines for the 3rd consecutive market day to 10,480 points: turnover dips to a miserly Rs 579mn: number of shares traded crashes to a negligible 19.82 mn.
  6. President Ranil Wickremesinghe leads a delegation of over 80 persons, including Foreign Minister Ali Sabry, Environment Minister Keheliya Rambukwella & Energy Minister Kanchana Wijesekara to attend the upcoming UN Climate Change Conference of Parties (COP28) Summit in Dubai next week: several delegates from international non-governmental organisations, private sector entities & stakeholders will also be included in the largest-ever Sri Lankan delegation.
  7. Top Opposition spokesman Professor G L Peiris warns of a major Govt offensive against the media to neutralise print & electronic media, ahead of the Presidential election scheduled for next year: asserts the proposed creation of a “Broadcasting Regulatory Commission” for electronic media, Online Safety Bill and Commission of Inquiry headed by retired Chief Justice Priyasath Dep, PC, poses a threat to media freedom.
  8. Justice Minister Wijeyadasa Rajapakshe says a new Registration & Enforcement of Foreign Judgments Bill that would enable the registration & enforcement in SL of rulings given by Courts in other countries is to be submitted to Parliament: new law expected to repeal the existing “Enforcement of Foreign Judgments Ordinance & the Reciprocal Enforcement of Judgments Ordinance”.
  9. Cardinal Malcolm Ranjith calls on people to reject oppressive leaders in order to
    cleanse the country’s politics, & to enable the emergence of a new leadership: asserts it’s the duty of all patriotic & independent media to defeat moves towards a dictatorship: urges people not to barter their votes for roofing sheets, food or alcohol.
  10. SL Chess Olympiad first-ever Gold medalist Suneetha Wijesuriya receives the title of “FIDE Trainer” from the Int’l Chess Federation: this is the first time a SL chess player has received this title.

Four more stranded Sri Lankans safely repatriated from Gaza Strip

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Colombo (LNW): The Ministry of Foreign Affairs affirmed the safe repatriation of a four-member Sri Lankan family who were stranded in the Gaza Strip.

The Consular Affairs Division of the Ministry facilitated their return, and upon arrival in Colombo on November 24, officials from the Foreign Ministry received the returning Sri Lankans.

Coordination efforts between the Sri Lankan Embassy in Cairo, Egyptian authorities, and the Consular Affairs Division ensured a smooth repatriation process at the Rafah border between Egypt and Gaza.

The Ministry of Foreign Affairs arranged logistics and air transportation for the returnees with the assistance of the International Organisation for Migration (IOM).

Since the onset of the recent crisis on October 7, 2023, a total of 15 Sri Lankans stranded in the Gaza Strip have been successfully repatriated to Sri Lanka through coordinated efforts with Sri Lanka Missions in Cairo and Ramallah.

PM and Italian Ambassador discuss establishment of direct Air and Maritime route between Italy and SL

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Colombo (LNW): A meeting took place between Premier Dinesh Gunawardena and the newly appointed Italian Ambassador, Damiano Francovigh, at the Prime Minister’s Office in Parliament yesterday (27).

Ambassador Damiano Francovigh expressed his willingness to promptly address matters related to establishing Colombo as a direct air and shipping destination, with the primary goal of fostering tourism ties between the two nations.

Discussions centred around the mutual desire to strengthen bilateral relations between the two countries, a statement by the Prime Minister’s Media Unit said.

In response to the Sri Lankan Prime Minister’s request, the ambassador conveyed that a delegation from the Italian Trade Agency would be dispatched for discussions with the private sector in Sri Lanka, aiming to foster trade relationships between the two nations.

Highlighting delays in visa issuance at the Sri Lankan embassy, Gunawardena noted the issue, and the Italian ambassador assured that his attention had been directed towards resolving the delays within the next few weeks.

The meeting included the participation of Secretary to the Prime Minister Anura Dissanayake and the Italian Deputy Ambassador.