Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis recommended to the Insurance Regulatory Commission to make regulations within one month to amend laws in a client-protection manner.

This was recommended when the sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis met in Parliament recently (16) under the chairmanship of Member of Parliament Hon. Gamini Valeboda.

Officials representing the Insurance Regulatory Commission and Regional Development Bank (RDB) were summoned for this committee.

The chairman of this Committee also pointed out that if the industry is to be protected, the insurance holder must be protected. Due to this, he pointed out that necessary steps should be taken to amend the necessary laws for above purpose. Also, the Committee recommended paying due attention to the foreign insurance companies that have been used for reinsurance. Also, the Committee proposed to create an action plan for the Insurance Committee under the preview of the Insurance Regulatory Commission for the next five years.

In addition, the Regional Development Bank (RDB) was also summoned to this Committee and the delay in presenting the annual reports of the institution to the Parliament was discussed here. Thus, the Committee advised to present the annual reports of the years 2020 and 2021 to the Parliament within one month.

The Committee also instructed to inform the Secretary of the Ministry of Finance about the currently vacant chairmanship of the Regional Development Bank (RDB). Members of Parliament Hon. Sahan Pradeep Withana, Hon. (Major) Sudarshan Denipitiya, Hon. Chinthaka Amal Mayadunne, Hon. Samanpriya Herath, Hon. Manjula Disanayake, Hon. Gayashan Nawananda, Hon.Rohini Kavirathna, Hon. Jagath Samarawikrama, Hon. Vadivel Suresh, Hon. W.H.M. Dharmasena participated at the meeting.

The role and future plans of several departments of the Ministry of Foreign Affairs were taken up for discussions at the Sectoral Oversight Committee on International Relations. This was discussed when the Sectoral Oversight Committee on International Relations met in Parliament Nov- (21) Chaired by Member of Parliament Hon. Akila Ellawala. The Chair of the Sectoral Oversight Committee is Hon. Namal Rajapaksa.

Officials representing the Consular Affairs Division, the United Nations and Human Rights Division and the National Oceanic Affairs Committee Secretariat operating under the Ministry of Foreign Affairs were summoned before Committee. Accordingly, the Committee inquired the officials who were present regarding the current activities and role of each of these departments.

The officials present explained to the Committee regarding the functions of the respective departments.

In addition, attention was also paid to the current situation in the Middle East region and in particular, the ongoing conflict between Israel and Palestine was also examined. Moreover, Hon. S. M. M. Muszhaaraff, Memebr of Parliament inquired regarding the relationship between the Kingdom of Saudi Arabia and Sri Lanka. Thus, it was pointed out that the officials who came also accepted the existing relationship between the two countries.

The Committee pointed out that the price of tourist accommodation (hotel rooms) in Sri Lanka (especially in tourist hotels around Colombo) is high compared to other countries and attention should be paid in this regard.

In addition to this, youth representatives who were part of the Sectoral Oversight Committee drew the attention of the officials present regarding the Negombo beach which was in an unsanitary condition stating that due to this condition, the tourism attraction is being impaired. Members of the Committee Hon. S. M. M. Muszhaaraff and Hon. Madhura Withanage were present at the Committee meeting held.

Furthermore, official representing the Ministry of Foreign Affairs, Department of Immigration, Sri Lanka Export Development Board, Sri Lanka Investment Promotion Board, Sri Lanka Tourism Development Authority and Sri Lanka Tourism Promotion Bureau were also present at the Committee meeting held.

Sri Lankan Rupee experienced a marginal depreciation against the US Dollar today at commercial banks in Sri Lanka, compared to the rates observed on Thursday, November 23.

Peoples Bank reported an increase in both buying and selling rates of the US Dollar, moving from Rs. 322.66 to Rs. 322.90 for buying, and from Rs. 333.90 to Rs. 334.15 for selling.

Meanwhile, according to Commercial Bank, the buying rate for the US Dollar rose slightly from Rs. 322.24 to Rs. 322.49, and the selling rate increased from Rs. 332.50 to Rs. 332.75.

However, there was no change in the buying and selling rates of the US Dollar at Sampath Bank, remaining steady at Rs. 324 for buying and Rs. 334 for selling.

The Court of Appeal, headed by Justices Sobhitha Rajakaruna and D.N. Samarakoon, has once again pushed back the hearing on the Sri Lanka Cricket (SLC) Interim Committee case.

1. President Ranil Wickremesinghe says Sri Lanka may become a battleground in the geopolitical power struggle between India & China: asserts however that SL will not endanger the security of India.
2. Ceylon Electricity Board says it is confronting staggering losses once again: estimates an alarming Rs.18bn loss, and asserts it is necessary to introduce the tariff increase.
3. Dr Sashini Ranaweera of the National Dengue Control Unit says Sri Lankans between the ages of 15 and 49 are affected by dengue more than those of other age categories: asserts most of the dengue deaths are also reported among the same age group.
4. Medical Supplies Division of the Ministry of Health states that a total of 115 drugs have failed quality tests so far in 2023.
5. Matter pertaining to the appointment of an Interim Committee at Sri Lanka Cricket to be taken up before the Court of Appeal today.
6. President Ranil Wickremesinghe says in Parliament that a Parliamentary Select Committee will be appointed to probe the delays by the Constitutional Council in approving names to high posts.
7. Chairman of the Human Rights Commission L T B Dehideniya sends letter to Minister of Justice Wijayadasa Rajapakshe advocating for the repeal or amendment of Sections 365 and 365A of the Penal Code: recommends measures aligning national laws with international human rights norms.
8. Foreign funded Think Tank says SL’s hotel minimum room rates policy acts as a “price control” & is the worst course of action that can be taken by the Govt: asserts it places the industry at a considerable disadvantage against regional & global competitors at a time when a global slowdown looms.
9. Central Bank cuts its policy rate at which money is injected into the banking system to 10% & the lower corridor to 9%: says sufficient monetary easing has been effected in order to stabilise inflation over the medium term.
10. SL speedster Matheesha Pathirana, 20, set to miss the upcoming 2023 Abu Dhabi T10 Cricket season, due to an injury: apart from Pathirana, his SL pace mates Lahiru Kumara, Dushmantha Chameera & Dilshan Madushanka will also be skipping the T10 franchise leagues citing several reasons.

The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) recently announced a substantial reduction in both the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 100 basis points each, setting them at 9.00% and 10.00%, respectively.

This decision, made during their November 23 meeting, stems from a comprehensive evaluation of the local and global economic landscapes. The primary objective remains stabilizing inflation at 5% over the medium term while aiding the economy in reaching its potential level.

Acknowledging potential inflationary pressures due to forthcoming domestic and global factors, the Board remains confident that these short-term risks won’t significantly alter the medium-term inflation outlook. This conviction arises from the public’s anchored inflation expectations and the anticipation of subdued economic activity in the near to medium term.

Having implemented multiple monetary policy measures since June 2023, the Board believes that sufficient monetary easing has been executed to stabilize inflation over the medium term. Consequently, they stress the urgency for financial institutions to swiftly and fully pass on these easing measures to market interest rates, especially lending rates, facilitating a rapid normalization of these rates in the foreseeable future.

The CBSL’s recent data highlights a persistently low headline inflation, with October 2023 figures indicating a marginal increase from previous months. Notably, food inflation remained negative for the fourth consecutive month. Core inflation, reflecting underlying demand pressures, further eased in October, aligning with the overall subdued demand in the economy.

Anticipating a temporary uptick in inflation due to upcoming changes in Value Added Tax (VAT) effective January 2024, the CBSL expects this rise to be short-lived, supported by subdued demand pressures. They reiterate confidence in inflation converging towards the targeted 5% level over the medium term, backed by appropriate policy actions.

Market interest rates are forecasted to normalize in the coming period, with noticeable adjustments already observed. With policy rate cuts, credit to the private sector expanded in September and October 2023, signaling a positive impact on market lending rates. This easing of rates is expected to stimulate further private sector credit, fostering the envisioned revival of domestic economic activity.

Ambassador M. R. K. Lenagala presented Letters of Credence accrediting him as the Ambassador Extraordinary and Plenipotentiary of Sri Lanka to Austria to the Federal President of the Republic of Austria Alexander Van der Bellen at the Hofburg Palace in Vienna on 21 November 2023.

The presentation of credentials was followed by a courtesy call on the Federal President of Austria and an inspection of the Presidential Guard of Honour.

During the courtesy call, Ambassador Lenagala conveyed to the Austrian President Van der Bellen greetings and best wishes from President Ranil Wickremesinghe, which were warmly reciprocated. Avenues for further strengthening of bilateral relations were discussed particularly in view of the important milestone of 70th Anniversary of diplomatic relations between the two countries in 2024. Counsellor Charitha Weerasinghe of the Embassy was also present at the meeting.

Ambassador Lenagala is a career diplomat with over 25 years of experience. Prior to this appointment he served as Additional Secretary (Multilateral Affairs) at the Ministry of Foreign Affairs in Colombo. In his previous diplomatic assignments he has served at the Permanent Mission of Sri Lanka to the United Nations in New York and as the Deputy High Commissioner of Sri Lanka both in London and in New Delhi. At the Ministry of Foreign Affairs in Colombo he has served in several capacities at the Political Affairs West and the UN & Human Rights Divisions, the latter of which he has headed twice as the Director General. He has also served as Personal Assistant to four consecutive Ministers of Foreign Affairs. A past student of Ananda College Colombo, he holds a Bachelor of Science degree and a Masters of International Relations degree from the University of Colombo. He is an Attorney-at-Law of the Supreme Court of Sri Lanka.

The Embassy of Sri Lanka in Austria is concurrently accredited to Bosnia & Herzegovina, Czechia, Hungary, Serbia, Slovakia and Slovenia and also serves as the Permanent Mission of Sri Lanka to the United Nations Office and Other International Organisations in Vienna.

Embassy and Permanent Mission of Sri Lanka
Vienna

23 November 2023