May 27, Colombo (LNW): The National Consumer Front has reported that the retail price of ginger has surged to Rs. 5,000 per kilogram at the Narahenpita Economic Centre today (27).

In addition, the retail price of beans has escalated to Rs. 700 per kilogramme, and the price of lime has reached Rs. 1,800 per kilogramme at the same centre.

May 27, Colombo (LNW): Sri Lanka’s tea smallholders, responsible for over 75 per cent of the country’s tea production, have voiced serious concerns about the government’s decision to raise the minimum daily wage without securing additional revenue streams or consulting the industry.

The wage increase disproportionately impacts small and medium estate owners, Ushan Samarasinghe, Founding General Secretary of the Medium Scale Tea Estate Owners Association, warned.

Samarasinghe told Daily Mirror that there is necessity for the government to identify new markets to generate the additional revenue needed to support the wage increase.

Without this, many tea estate owners might be compelled to switch to other crops, a trend already observed among numerous estate owners, he added.

Smallholders, still recovering from crises such as the agrochemical ban, are struggling to afford fertilisers.

Samarasinghe pointed out the bureaucratic hurdles in obtaining subsidised fertiliser, suggesting that the wage hike could exacerbate these challenges.

The proposed new living wage of Rs.1700, a 70 per cent increase from the current Rs.1000, comprises a Rs.1350 daily wage (inclusive of the daily budgetary relief allowance and applicable for EPF and ETF payments) and a Rs.350 daily special allowance. Additionally, Rs.80 is proposed for each kilogramme over a specified rate.

However, Samarasinghe argued that maintaining a minimum green leaf price of Rs.300 per kilo is necessary to support the wage hike.

He highlighted the difficulty of achieving this due to fluctuations in tea auction prices, suggesting the government should establish a floor rate at auctions.

He also expressed concerns about the timing of the wage hike announcement, coinciding with the election cycle.

Samarasinghe emphasised that while they do not oppose wage increases, they believe it should be linked to productivity, proposing that a percentage of green leaf prices be allocated to workers based on productivity.

Currently, the green leaf count in Sri Lanka is significantly lower than in other tea-growing nations like Kenya.

In a letter dated 14 May to President Ranil Wickremesinghe, the Estate Owners Association (TEOA), representing leading tea entrepreneurs from the Sri Lanka National Institute of Plantation Management, presented a comprehensive proposal to integrate and empower the tea industry and its workers.

The proposal includes initiatives for the Integration and Marketing of High Polyphenol Tea Products and a Tea Technologist Project for Worker Empowerment.

The TEOA suggested launching a specialised Tea Technologist Project to enhance the skills and expertise of tea workers, thereby improving their contribution to the production process.

This initiative aims to ensure fair wages, improve living standards, and offer career advancement opportunities, enhancing the socio-economic well-being of tea workers and fostering a culture of dignity and respect within the industry.

Additionally, the TEOA urged the government to ensure a US$5 floor price per kilogram for manufactured tea to facilitate the wage increase.

Related news:

May 27, Colombo (LNW): The Ministry of Labour and Foreign Employment has announced an approved wage increase for workers in the plantation sector, effective from 21 May 2024.

The decision, endorsed by Minister Manusha Nanayakkara, was formalised through a gazette notification issued last week by Ministry Secretary R. P. A. Wimalaweera.

The wage hike applies to employees in both the Tea Growing and Manufacturing Trade and the Rubber Cultivation and Raw Rubber Processing Trade.

The new wage will come into effect on 21 May 2024, according to the notification, published in Gazette Extraordinary No. 2381/35 on 25 April 2024.

On 25 April, the Minister of Labour and Foreign Employment authorised a gazette permitting the Commissioner of Labour to set a minimum wage for these trades.

The new living wage of Rs.1700 represents a 70 per cent increase from the current wage of Rs.1000.

Stakeholders were given until 12.00 noon on 15 May to submit any objections to the proposed wage determination.

May 27, Colombo (LNW): Tourist arrivals in Sri Lanka are anticipated to surpass 100,000 for May, though they are expected to fall short of the projected target of 120,934 to 131,112 visitors, reports claim.

The first three weeks of May (from 1st to 21st) saw a modest increase in tourist arrivals, reaching 79,431 compared to 83,309 in the same period last year, according to provisional data from the Sri Lanka Tourism Development Authority.

The daily average of arrivals stands at approximately 3,782, a decrease from the 5,000 daily arrivals seen in previous months.

Tourism typically experiences a lull from April through the summer, as this period is considered off-peak.

Authorities also suggest that recent visa issues may have contributed to the decline in arrivals for the month.

India has emerged as the leading source of tourist traffic, accounting for 26 per cent of total arrivals. The Maldives ranks second with 11 per cent.

Russia, previously among the top two sources of tourists, has dropped to the seventh position for May.

Industry stakeholders attribute this decline to Russian charter flights opting for alternative destinations this summer, citing increased hotel room rates and landing charges at Mattala International Airport.

Germany has climbed to third place, contributing 8 percent of total arrivals, followed by the United Kingdom at 7 per cent.

China has entered the top five markets, accounting for 6 per cent of total arrivals for May, thus ranking fifth.

May 27, Colombo (LNW): Inspector General of Police (IGP) Deshabandu Tennakoon has announced the establishment of a special committee to determine if any individuals associated with the ISIS terrorist organisation are residing in Sri Lanka.

An immediate investigation has been initiated to address this concern, Tennakoon revealed during a media briefing in Kaduwela yesterday (26).

The new committee incorporates with the Terrorism Investigation Division (TID), Intelligence Unit officials, and the Special Task Force, under the oversight of the Deputy Inspector General of the Criminal Investigation Department (CID), Tennakoon said.

He further mentioned that he meets with the committee daily to discuss progress and provide necessary instructions.

The investigation has made significant strides, and updates on its progress will be shared in due course.

When questioned about any connections between the four Sri Lankans recently arrested in Gujarat, India, and the Easter attacks, the IGP stated that the legal division of the Sri Lanka Police has been directed to thoroughly review the commission report and provide relevant details.

There are currently no reports confirming such links, he added, asserting that he will receive information on the matter today (27).

May 27, Colombo (LNW): The Ministry of Foreign Affairs of Sri Lanka has conveyed its deepest condolences on the sudden demise of Jean-François Pactet, the French Ambassador to Sri Lanka and the Maldives.

In an official statement, the Ministry expressed profound sorrow over the unexpected demise of Ambassador Pactet, affirming that all necessary assistance will be provided to the French authorities and the late Ambassador’s family.

The Foreign Ministry also stated that it is in close contact with the French Embassy in Sri Lanka during this difficult time and that details regarding the funeral arrangements will be communicated by the relevant authorities in due course.

Ambassador Jean-François Pactet, aged 53, passed away on Sunday at his official residence in Rajagiriya, reportedly due to a sudden illness.

May 27, Colombo (LNW): Veteran Sri Lankan musician Ananda Perera has passed away aged 67.

His demise was pronounced while receiving treatment at a hospital in Kandy, according to family sources.

By: Isuru Parakrama

May 27, Colombo (LNW): The prevailing windy conditions is expected to continue further, due to the South West Monsoon condition, and showers or thundershowers, therefore, will occur at times in Western, Sabaragamuwa, Central, North-western and Southern provinces, the Department of Meteorology said in its daily weather forecast today (27).

Fairly heavy showers about 75 mm are likely at some places in Western and Sabaragamuwa provinces and in Nuwara-Eliya district, the statement read.

Showers or thundershowers will occur at several places in Uva and Eastern provinces in the evening or night.

Strong winds of about (50-60) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Western, Southern and North-western provinces and in Trincomalee district. Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island.

Marine Weather:

The sea areas extending from Trincomalee to Pottuvil via Kankasanthurai, Kalpitiya, Colombo, Galle and Hambantota will be very rough at times with very strong gusty winds up to (60-70) kmph. Naval and fishing communities are advised not to venture into the above sea areas, until further notice.

Wind speed will be (30-40) kmph and can be increased up to (50-60) kmph at times in the other sea areas around the island.

There is a possibility that near shore sea areas off the coast extending from Kalpitiya to Matara via, Colombo and Galle may experience surges due to swell waves.

Naval and fishing communities are also requested to be attentive to future forecasts issued by the Department in this regard.

Meanwhile, the Meteorology Department warned of the cyclone storm named “Remal” (pronounced “Re-Mal”) over the North Bay of Bengal, which has been intensified into a severe cyclone storm at 05.30 a.m. on May 26.

It is located near 19.5°N and 89.3°E, to the north-east of Sri Lanka, and 1500 km away from Kankasanthurai.

It is very likely to move nearly northwards, intensify further, and cross Bangladesh and adjoining West Bengal (India) coasts by May 26th at midnight.

Very strong winds (60-70) kmph, accompanied with heavy rainfalls and very rough seas are likely over the sea areas around the country and over the South-eastern Arabian Sea areas and Bay of Bengal Sea areas.

Actions Required:

• Those who are out at aforementioned sea regions are advised to return to coasts or moved safer areas immediately.
• Fishing and naval community are requested to be attentive to future forecasts issued by the Department in this regard.

By: Staff Writer

May 26, Colombo (LNW): Sri Lanka’s economy is set gain moderate growth of 2.2% in 2024, showing signs of stabilization in the wake of public investment disbursement acceleration under strict regulation

But, the country still faces elevated poverty levels, income inequality, and labor market concerns, says, following the severe economic downturn of 2022.the World Bank’s latest bi-annual update.

At the same time, private investment growth has slowed sharply in all South Asian countries and the region is not creating enough jobs to keep pace with its rapidly increasing working-age population

The government has allocated a massive sum of Rs 1.2 trillion for public investment projects in 2024 issuing guidelines require all project proposals utilising the Consolidation Fund to be submitted to the National Planning Department (NPD)  where there undergo preliminary and detailed appraisal before moving to the funding arrangement stage

Break down of project investments this year for seven key sectors are social Infrastructure Rs.  210.64 billion, agriculture Rs57.72billion ,commercial infrastructure Rs.743.33billion  governance Rs73 billion ,environment  Rs7.14 billion Social Protection Rs13.29 billion and ,regional development Rs.71.47 billion, finance ministry data shows.   

According to a latest department circular, a significant number of project proposals are directly submitted to the Cabinet for approval skipping appraisal by the NPD entirely.

Approval of the projects without NDP’s appraisal and recommendations creates major deviations such as duplication of similar projects by different institutions, inability to prioritise development initiatives, and mismanagement of constrained fiscal space, it added.

The government is to accelerate public investment disbursement for priority projects generating return on investment to further economic growth post-crisis period this year.

Disbursing public investment capital is vital for the country’s economic recovery as it looks to bounce back from the negative effects of the pandemic and slowdown in its economy.

A new public finance management (PFM) Law will be promulgated soon, with an integrated public investment management (PIM) section with provisions that establish a unified approach to prioritising capital investment projects based on explicit criteria early in the budget process

The Ministry of Finance is required to ensure that all projects included in budget documents are from the list of assessed and prioritised projects.

An enhanced regulatory framework will be established for treatment of unsolicited proposals including the manner in which such proposals can be received and evaluated. The ministry is to publish on a government website a list of funded projects that have originated as unsolicited proposals every 6 months

By: Staff Writer

May 26, Colombo (LNW): The Information and Communication Technology Agency (ICTA) Act No. 27 of 2003 will be repealed by introducing the Technology Promotion Act paving the way for the establishment of Digital Transformation Agency

Accordingly, the Legal Draftsman is to prepare a draft bill based on the proposed concept paper and the new act involves “introducing new laws for digital improvement/transformation” and the establishment of a technology innovation council along with a digital transformation agency.

The news comes after the president first announced plans some times back for such an agency with the idea of building government apps in-house. Additionally, the agency would collect and monitor numerous state institutions.

The Information and Communication Technology Agency of Sri Lanka (ICTA) will be absorbed by the proposed Digital Transformation Agency, the State Minister of Technology reveals.

State Minister of Technology Kanaka Herath revealed that Cabinet approval had been granted subject to parliamentary approval to establish a new institution termed the Digital Transformation Agency, which would absorb the existing ICTA

The eventual transition from ICTA to a new governmental agency has been in the works since at least late 2022.

During the 2023 budget reading, the president declared plans to close ICTA and bring forward legislation instead, now classified as the Technology Promotion Act.

The amendments to the ICTA Act would also facilitate the creation of the proposed national AI center, as per a Cabinet briefing in December. Now, with Cabinet approval for the amendment and it’s increasingly vocal AI plans, it appears the government is moving forward.

The proposed Digital Transformation Agency is only one of few government bodies that are to be established over its national digitalization plans.

The Data Protection Act’s Data Protection Authority is expected to be fully operational by 2025. More recently, the upcoming Cyber Security Bill will set up a Cyber Security Regulatory Authority

“The Digital Transformation Agency will be charged with regulating policies. Also, certain services such as the Government network, cloud, and email will be provided by the agency. It will no longer carry out projects like before,” Herath explained.

He clarified that the existing staff of the ICTA would be absorbed into the new Digital Transformation Agency as per the bill that was being drafted nce passed into law.

Other particulars around the upcoming bill remains unclear, particularly with regard to the Digital Promotion Transformation Agency’s purview and scope of responsibilities.

It’s also unclear when the bill is intended to be made public. However, the president has publicly stated the government’s intentions to set up the necessary legislation in time for its proposed AI research by 2025.

This means the amendments to the ICTA Act and the Technology Promotion bill may potentially be processed in the coming months.