February 29, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates appreciation against the US Dollar today (29) in comparison to yesterday as per leading commercial banks in the country.
At Peoples Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 304.25 and Rs. 314.86, respectively.
At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 303.16 from Rs. 304.27, and the selling price to Rs. 314 from Rs. 314.25.
At Sampath Bank, the buying price of the US Dollar has dropped to Rs. 305 from Rs. 305.50, and the selling price to Rs. 314 from Rs. 314.50.
President Ranil Wickremesinghe emphasises Sri Lanka’s commitment to ensuring freedom of navigation and stability in the Indian Ocean: addresses emerging security concerns, highlighted Sri Lanka’s role in the Indo-Pacific, and advocates for cooperation among major powers: stresses the need for nuanced diplomacy amid complex geopolitical dynamics and outlined Sri Lanka’s vision for the region as a hub for economic growth and cooperation.
SLPP MP Namal Rajapaksa says only a handful of members in his party who are holding positions in the government including ministries are of the view that the SLPP should back President Ranil Wickremesinghe in the next presidential polls: adds everyone else in the party is of the view that a decision in this regard should be taken by the party itself.
MP Dullas Alahapperuma warns President Ranil Wickremesinghe of legal action over potential violations of the Constitution, particularly regarding the postponement of elections: emphasises that even the President is not above the law and suggests that legal recourse via the Supreme Court may be pursued if constitutional breaches persist.
IMF team to conduct second review of Sri Lanka’s Extended Fund Facility (EFF) program starting March 7: The government expects a smoother review than the first, lasting about two weeks: Assessment will focus on meeting key commitments and economic health, including debt restructuring and revenue targets: First review cleared in December, providing $337 million amid the country’s financial crisis.
CEB proposes a 14% reduction in electricity tariffs, contrasting with the Energy Minister’s earlier 18% reduction claim: The reduction aims to benefit all customer categories and is made possible by measures to control the Central Bank: Adjustments in operational expenses, including personnel and material costs, are outlined: Dry season demand surge necessitates hydro machinery maintenance for optimal performance: Delays in maintenance projects require adjustments in disbursements for 2024: Discussions are ongoing at PUCSL regarding the proposed tariff revision.
Finance State Minister Shehan Semasinghe announces the completion of the verification process for the “Aswasuma” programme’s second phase, extending benefits to 2.4 million family units starting June 2024: Applications for the second phase close on March 15, with strict adherence to the deadline: Approximately 7,000 individuals receiving benefits based on false information were removed: Out of 3.4 million families certified in the first phase, 1.9 million are eligible for benefits: Payments for selected beneficiaries begin in July 2024 after resolving appeals and objections: Over 1.19 million appeals have been resolved, and efforts to raise awareness online have resulted in 200,000 to 250,000 applications: Applications will cease after March 15. Rs. 205 billion is allocated for compensation payments in 2024: Fraudulent beneficiaries will face legal action.
Sri Lanka imposes one-year ban on Chinese research vessels in its Exclusive Economic Zone (EEZ) starting January 3, 2024, following concerns over activities of Chinese vessel Xiang Yang Hong 3 in the south Indian Ocean: The ban, prompted by Indian security concerns, drew praise from Indian media but sparked Chinese discontent, with authorities criticising external influence on Sri Lanka’s decision.
The Education Ministry directs schools to suspend outdoor activities and sports for the next three days due to high temperatures, effective immediately: The directive aims to protect students from the heat, with temperatures reaching ‘Caution’ levels in various parts of the island: The Department of Meteorology highlighted areas, including the North-western, Western, and Southern provinces, along with Ratnapura District, where caution is advised due to the high temperature: Foreign tourists have also been affected by the extreme heat.
Sri Lanka’s Elephant House, a subsidiary of Ceylon Cold Stores PLC, partners with India’s Reliance Consumer Products Limited (RCPL) to introduce its beverages in the Indian market: RCPL, a subsidiary of Reliance Retail Ventures Limited, aims to enrich its beverage portfolio with Elephant House’s iconic brands like Necto and Cream Soda: The collaboration aligns with RCPL’s vision to offer quality products to Indian consumers.
The Sri Lankan cricket team is set to tour Bangladesh for a series comprising three T20 matches, three ODIs, and two Test matches, starting March 4: With a focus on the upcoming T20 World Cup, the return of skipper Wanindu Hasaranga boosts SL’s confidence after recent victories against Zimbabwe and Afghanistan: Senior players like Angelo Mathews and Dasun Shanaka strengthen the team’s resolve: Despite injuries sidelining players like Pathum Nissanka, the team remains optimistic: Bangladesh, under coach Chandika Hathurusinghe, is prepared for a competitive series: SL’s T20 squad, led by Hasaranga and vice-captain Charith Asalanka, includes key players like Kusal Mendis and Akila Dananjaya.
February 29, Colombo (LNW): China has reportedly expressed its discontent to Sri Lanka regarding the imposition of a one-year ban on Chinese research vessels from conducting studies within the country’s Exclusive Economic Zone (EEZ), effective from January 3, 2024.
The moratorium, which prohibits the involvement of any foreign research vessel, was implemented following concerns raised over the planned exploration activities of the Chinese research vessel Xiang Yang Hong 3 in the south Indian Ocean.
The vessel is officially owned by the Third Institute of Oceanology of the Chinese Ministry of Natural Resources.
Sri Lanka’s decision to impose the ban came amidst pressure from India, which cited security apprehensions arising from such activities in its vicinity.
The Indian media widely praised Sri Lanka’s decision, characterising it as a setback for China.
However, Chinese authorities expressed their dissatisfaction with the decision and conveyed their displeasure to Sri Lanka, attributing the move to external influence.
While the decision garnered praise from the Indian media, the Chinese media criticised India for allegedly pressuring neighbouring countries to adopt anti-Indian measures.
February 29, Colombo (LNW): In a recent development, the Ceylon Electricity Board (CEB) has presented a revised proposal to the Public Utilities Commission of Sri Lanka (PUCSL), suggesting that electricity tariffs could potentially be reduced by an average of 14 per cent.
This contrasts with earlier assertions made by the Energy Minister regarding an 18 per cent reduction.
According to the CEB, this reduction in tariffs has been strategically facilitated by measures taken to exercise control over the Central Bank, resulting in substantial financial benefits.
By enhancing the affordability of project loans, the CEB aims to alleviate the burden of financing, thus enabling a reduction in tariffs.
The revised tariff proposal outlined by the CEB aims to provide relief across all customer categories. Notably, adjustments have been made in various operational expenses, including personnel expenses, material costs, maintenance of civil structures, fuel and vehicle maintenance, communication services, retail service costs, and other overheads.
Furthermore, the prevailing economic conditions in the country have influenced workforce availability, particularly in labour-intensive distribution divisions, leading to reductions in certain personnel and material costs.
As the nation approaches the dry season, there is a surge in electricity demand. Scheduled maintenance of hydroelectric machinery during this period is crucial to ensure optimal performance during the subsequent wet season.
Postponing maintenance activities presents challenges in meeting increased demand without resorting to costly plant operations or risking demand management procedures.
Delays in several maintenance and upgrade projects within the Generation Division have necessitated adjustments in disbursements for the year 2024.
Notable projects, such as those at the Victoria Power Plant, Kotmale, Ukuwela, Upper Kotmale, and Bowatanna plants, are either nearing completion or undergoing critical refurbishments aimed at enhancing efficiency and reliability.
At the time of this report, discussions were underway at the PUCSL regarding the decision to announce the proposed electricity tariff revision.
February 29, Colombo (LNW): Finance State Minister Shehan Semasinghe announced the completion of the verification and certification process for applicants in the second phase of the “Aswasuma” programme.
As a result, arrangements have been made to extend benefits to 2.4 million family units, with implementation set to commence in June 2024.
During a press briefing held at the Presidential Media Centre under the theme ‘Collective Path to a Stable Country’, State Minister Semasinghe emphasised the imminent closure of the second phase of applications, scheduled to end on March 15, 2024.
Stressing the importance of timely submission, he cautioned that failure to adhere to the deadline would result in individuals forfeiting eligibility for programme benefits.
Moreover, the Minister highlighted that approximately 7,000 individuals who had received benefits based on false information were removed from the programme following appeals and objections.
Providing further insights, the State Minister disclosed that initially, 3.4 million family units were certified during the programme’s first phase, out of which 1.9 million families have been deemed eligible for benefits.
Following the adjudication of appeals and objections, the Welfare Benefit Board is set to initiate payments to selected beneficiaries starting July 2024.
With regards to the application process, Semasinghe reported that approximately 1,197,000 appeals and objections out of a total of 1,227,000 have been resolved.
Additionally, efforts to raise awareness online have resulted in the submission of around 200,000 to 250,000 applications. Application forms submitted directly to Divisional Secretariats are currently undergoing processing via the online system.
It is emphasised that the call for applications in the second phase will cease after March 15, 2024, with failure to submit rendering individuals ineligible for relief benefits.
Furthermore, following the completion of verification and certification for new applicants, all necessary preparations have been concluded to extend insurance benefits to 2.4 million family units from June 2024 onwards, with an anticipated allocation of Rs. 205 billion for compensation payments in 2024.
Minister Semasinghe reiterated that the allocation of these provisions has already been arranged.
Regarding individuals found to have received benefits through fraudulent means, Semasinghe emphasised the readiness to pursue fund recovery and legal action in accordance with the law upon identification of such cases.
In his address at the Pathfinder Indian Ocean Security Conference phase III held at Cinnamon Grand Colombo yesterday (28), President Ranil Wickremesinghe emphasized Sri Lanka’s dedication to maintaining a strategic position aimed at ensuring the absence of major power rivalries and upholding freedom of navigation in the Indian Ocean. The President highlighted that Sri Lanka’s commitment to freedom of navigation has prompted the country to engage in operations as guardians of prosperity in the Red Sea. He underscored the significance of the Suez Canal, particularly evident during the Six-Day War when its closure for ten years negatively impacted the Colombo port, emphasizing the necessity of ensuring unrestricted navigation.
President Ranil Wickremesinghe also highlighted emerging issues, including security concerns in the undersea domain, prompting a reassessment of approaches. He expressed the belief that the future lies in the Indian Ocean, stressing the importance of understanding Sri Lanka’s role within the broader Indo-Pacific framework. The President noted that the dynamics of the Indo-Pacific, originating from post-World War II arrangements such as the San Francisco system and the Shanghai communiqué, have evolved, leading to questions about the country’s positioning and potential involvement in regional conflicts.
The two-day conference will see participation from delegates representing several nations, underscoring the significance of the Indian Ocean and its role in global security and supply chain resilience.
The President further highlighted the imperative to reconcile varying viewpoints on the Indo-Pacific, particularly regarding its geographical limits and implications for maritime security. Sri Lanka adamantly opposes the idea of confining the Indo-Pacific to India’s western boundary, stressing its wider territorial concerns that stretch to the African coast. This stance diverges sharply from China’s expansive outlook, prompting scrutiny into the underlying motives and potential repercussions of these contrasting approaches.
The President emphasized the importance of addressing emerging developments in the Indian Ocean amid complex geopolitical dynamics. This includes China’s growing presence, which is bolstered by infrastructure projects like the Friendship Highway in Pakistan and agreements with India concerning connectivity and harbour development. Furthermore, the evolution of economic corridors such as the Mumbai-UAE-Israel-Europe connection highlights the changing geopolitical landscape, emphasizing the need for long-term strategic planning.
In his address, President Ranil Wickremesinghe highlighted the interconnectedness of regional dynamics and the potential implications for maritime security and diplomacy, as evidenced by the recent conflict in Gaza. Stressing the arc of Islam stretching from the Middle East to Indonesia, he underscored the need for nuanced approaches to crisis management, considering geopolitical complexities and cultural sensitivities.
Emphasizing the importance of embracing the Indian Ocean’s identity and historical significance, President Wickremesinghe advocated for cooperation among major powers rather than competition. He outlined Sri Lanka’s vision for the region as a hub for economic growth extending beyond India to Africa.
Regarding the resurgence of Asia’s influence, particularly China’s pivot to the Indian Ocean and the Belt and Road Initiative’s impact, the President highlighted the necessity of re-evaluating traditional power structures and alliances. He also addressed Russia’s eastward shift and the evolving dynamics between Iran and Saudi Arabia, which further complicate the geopolitical landscape, calling for nuanced diplomacy and strategic foresight.
In conclusion, President Wickremesinghe reiterated Sri Lanka’s commitment to promoting stability and cooperation in the Indian Ocean region. He stressed the importance of maintaining an inclusive approach that respects the historical significance of the Indian Ocean and considers the perspectives of its diverse stakeholders for long-term peace and prosperity.
US Ambassador Julie Chung, Japan’s Deputy Assistant Minister for Southwest Asian Affairs Hayashi Makoto, Founder of Pathfinder Mr. Milinda Moragoda, Co-Chairmen of the Pathfinder Indian Ocean Security Conference, Mr. Bernard Gunathilake & Mr. Shivshankar Menon, along with High Commissioners, Ambassadors, officials from Ministries, line institutions of the Ministries and the tri-forces participated in this event.
February 29, Colombo (LNW): A few showers will occur in Eastern and Uva provinces and in Polonnaruwa and Matale districts, the Department of Meteorology said in its daily weather forecast today (29).
Showers or thundershowers may occur at a few places in Western and Sabaragamuwa provinces and in Galle, Matara and Nuwara-Eliya districts in the evening or night.
Fairly strong winds about (30-40) kmph can be expected at times in eastern slopes of the central hills and in Northern, North-central, North-western, Uva and Eastern provinces and in Hambantota district.
The public is kindly requested to take adequate precautions to minimise the damages caused by temporary localised strong winds and lightning during thundershowers.
Condition of Rain:
Showers or thundershowers may occur at a few places in the sea areas extending from Colombo to Matara via and Galle in the evening or night.
Winds:
Winds will be north-easterly and wind speed will be (25-35) kmph. Wind speed may increase up to (45-50) kmph at times in the sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Galle to Hambantota via Matara.
State of Sea:
The sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Galle to Hambantota via Matara can be fairly rough at times.
February 28, Colombo (LNW): The Houthi Terrorists in Yemen is now believed to have been damaged at least four under-sea communication cables in the Southern Red sea disrupting communication between areas oF Europe and Asian countries including India and Sri Lanka.
Four underwater communications cables between Saudi Arabia and Djibouti have been struck out of commission in recent months, presumably as a result of attacks by Yemen’s Iranian-backed Houthi rebels, according to an exclusive report in the Israeli news site Globes.
The successful targeting of the four cables, which are believed to belong to the AAE-1, Seacom, EIG, and TGN systems, marks a serious disruption of communications between Europe and Asia.
Most of the immediate harm will be absorbed by the Gulf States and India, Globes said.
The AAE-1 cable connects East Asia to Europe via Egypt, connecting China to the West through countries such as Pakistan and Qatar.
The Europe India Gateway (EIG) cable system connects southern Europe to Egypt, Saudi Arabia, Djibouti, the UAE, and India. The Seacom cable connects Europe, Africa, and India, and is connected to South Africa.
Yemen’s Iranian-backed Houthi movement, which is not the internationally recognized government of the Arab country but which controls its most populous segments, has been attacking international trade for months, proclaiming solidarity with Palestinians as Israel wages war against Hamas in the Gaza Strip.
The United States, United Kingdom, and allies have begun in recent months to take offensive actions against the Houthis in response to attacks, but the missile, helicopter, and underwater drone assaults on merchant ships have continued.
While the world has a decent supply of cable repair ships, they are booked up well in advance so finding one ready to work is not always possible. Nor are cable repairs easy: it takes time to find and retrieve a damaged segment and reconnect it.
These repairs could be complicated by regional tensions. The Houthis have attacked civilian ships and military assets in the Red Sea since the recent invasion of Gaza by the Israel Defense Forces after terrorist attacks by Hamas.
Some shipping companies have therefore decided the risks of attacks on their assets are too high and are currently avoiding the Red Sea, a decision that extends shipping times. Peripheral vendor Logitech recently warned its supply chain would experience delays as a result of the Red Sea conflict.
Members of a mailing list covering internet outages also said they had seen problems with cables that run through the Red Sea but reports on the list also dispute the timing of the incident, pointing out that one of the cables mentioned in coverage of the outages, EIG, has been “down for a few weeks.”
February 28, Colombo (LNW): The International Organization for Migration (IOM), in partnership with relevant ministries of the Government of Sri Lanka (GoSL) and the Government of Maldives (GoM) launched a regional project ‘Strengthening Capacity of Border Control for Responding to Infectious Diseases in Southwest Asia’.
With a fund of US$ 8.6 million, provided by the Government of Japan (GoJ), the project intends to strengthen overall border management capacities in Sri Lanka and the Republic of the Maldives to prevent the spread of infectious diseases that would otherwise impede the revitalization of human mobility.
The Cabinet of Ministers has given the go-ahead to a proposal seeking to upgrade the Bandaranaike International Airport (BIA) in Katunayake and the Colombo Port to be on par with the international practices, recommendations and standards under a grant provided by Japan.
As Sri Lanka’s economy is mainly dependent on the income generated from international tourism and business travel, the government says this requires smooth operation of entry points into the country, building confidence among travellers and arranging cross-border entry points to comply with international health regulations on movement.
Government of Japan has provided a grant of Yen 1.17 billion ot $7.79 million through the International Organization for Migration (IOM) to further strengthen border-related health preparedness at points of entry, direct contribution to the control of infectious diseases and the overall security of all passengers, staff and staff at points of entry during health emergencies.
Under the grant, the facilities of BIA, Colombo Port and the Maldives International Airport are planned to be upgraded.
As such the Cabinet of Ministers approved the proposal presented by the Minister of Ports, Shipping and Aviation to implement the relevant project in tandem with the Ministry of Health, Department of Immigration, Airports and Air Services Company and Sri Lanka Port Authority.
The dramatic reduction in human mobility has been one of the most significant effects of the COVID-19 pandemic.
This had major economic and social impacts in Sri Lanka and the Maldives, which are heavily reliant upon income from international tourism, labour migration and business travel.
The border closures and associated restrictions disrupted regular trade exchanges and impacted migration flows, as well as exposed border management agencies and cross-border communities to higher risks of infection.
The component of the project focusing on Sri Lanka will improve safety and security, and support process efficiency at primary points of entry (PoEs) to ensure more effective preparedness and proactive response to potential public health emergencies due to infectious disease outbreaks. The project will thus help interventions at the Bandaranaike International Airport (BIA) at Katunayake and the Colombo Port in Sri Lanka in compliance with International Health Regulations with approximately 700 PoE personnel and officers in Sri Lanka trained, in addition to the provision of improved infrastructure.
February 28, Colombo (LNW): The struggling Micro, Small and Medium Enterprises (MSMEs) and individuals are now breathing sigh of relief with the Cabinet of Ministers yesterday at its meeting agreeing to temporarily suspend highly contentious parate action till 15 December, 2024.
The Cabinet meeting chaired by President Ranil Wickremesinghe approved a proposal to this effect submitted by Justice Minister Dr. Wijeyadasa Rajapakshe PC along with Industries and Health Minister Dr. Ramesh Pathirana.
The Cabinet decision to temporarily halt parate action also comes despite warning by the Central Bank Governor Nandalal Weerasinghe that such a move will not help MSMEs and would be at the cost of banking system stability.
However the Cabinet move follows widespread demand for urgent “breathing space” for MSMEs and several political leaders backing the same.
The Government opted for temporary relief whilst the Asian Development Bank and other multilateral donor agencies are working to establish a credit guarantee fund.
To qualify for the temporary parate suspension, the MSMEs must show a proper restructuring plan for debt and operations.
Such a restructuring plan must show cash generation 20% over all expenses and debt servicing; an internal rate of return 15 to 25% and a feasibility of the restructuring plan must be documented and verified by an independent finance professional.
According to CBSL Governor MSMEs had been supported extensively since 2019. He revealed that the value of loans which got relief/restructured was Rs. 5.8 trillion.
He said in 2023 the number of actions were only 557 involving loans worth Rs. 38 billion which was 0.4% of total credit and 2.7% of impaired loans.
With banks asked to set up business revival units, he said over 2,500 enterprises with Rs. 85 billion in debt had been supported via this initiative.
Anti-parate activists who have now formed into a grouping called MSME Chamber of Sri Lanka claim that the number of parate actions was much higher and thousands of MSMEs have collapsed leading to job losses.
Economic expert Dr Harsha de Silva, MP, emphasised the urgent need for comprehensive measures to address the mounting challenges faced by these enterprises, which are crucial to the country’s economy and employment landscape.
To provide immediate relief to the struggling sector, he called for a two-year suspension of parate execution for non-willful defaulters and the introduction of insolvency legislation to support MSMEs.
MP Harsha said proposing “investor-equity eco-system model” as an alternative to collateral loans or venture capital, which would generate localised economic growth and provide investment opportunities for MSMEs.
According to the gazette notification issued by the government, informed that from January 2023 to the end of January 2024, 1410 property acquisitions have been made under parate law, they disclosed pointing out deflation of data by Central Bank.
National Trade Protection Council President Mahendra Perera said, the Government will have to consider MSMEs which went into default due to multiple crises caused by failure of political leadership and factors beyond the control of the private sector.
