Colombo (LNW): Minister of Tourism and Lands and Minister of Sports and Youth Affairs Harin Fernando boldly pinpointed that the primary cause of Sri Lanka’s economic downturn is a critical deficiency in discipline.
Expressing the prevailing challenges faced by the populace, he acknowledged the discontent over the value added tax (VAT) increase and other shortcomings.
Minister Fernando vehemently emphasised that the solution lies not in a systemic overhaul but in a transformation of people’s ideologies.
Highlighting the crux of the issue, he declared that the nation’s remarkable system remains intact, attributing the downfall to a lack of discipline.
In a resolute call to action, the Minister asserted that what Sri Lanka truly needs is not a change in systems but a profound shift in the people’s ideologies, urging self-discipline as the cornerstone of national recovery.
Colombo (LNW): Wasantha Samarasinghe of the National People’s Power (NPP) passionately addressed the profound impact of the escalating cost of living on the people of Sri Lanka, describing it as pushing them into ‘an abyss.’
Drawing attention to the alarming surge, he highlighted a staggering 441 per cent increase in electricity bills over the 16 months since Ranil Wickremesinghe took office as the President.
Despite this economic challenge, there is a notable lack of discussions addressing salary anomalies, contributing to the growing economic strain on citizens, Samarasinghe emphasised.
Moreover, he pointed out that the recent tax hike has further exacerbated the decline in the people’s standard of living, painting a stark picture of the broader struggles faced by the population.
Colombo (LNW): A nationwide special police operation initiated yesterday (17) has led to the apprehension of 83 suspects, Minister of Public Security Tiran Alles said.
Notably, among the detained individuals are 45 suspects wanted in connection with narcotics-related offenses.
The Sri Lanka Police launched this special operation with the objective of eliminating drug trafficking and addressing issues related to the underworld in the country.
Colombo (LNW): President Ranil Wickremesinghe has urged political leaders to demonstrate responsibility regarding the International Monetary Fund (IMF) programme, emphasising that those opposing it must provide concrete proposals to address the country’s financial crisis.
He cautioned against rhetoric for public appeasement without assuming responsibilities, stating that such tactics could lead the nation back into economic turmoil.
Speaking at the inauguration of the Karaliya Convention Centre and Performing Arts in Kandy, the President highlighted the importance of making tough decisions and criticised those making popular statements without a willingness to take necessary measures.
The newly established centre aims to address infrastructure gaps in Kandy by providing auditorium facilities and exhibition halls for art and sculpture.
President Wickremesinghe awarded certificates of appreciation to individuals and businesses for their contributions to the “Pivithuru Dorakada” business program and city beautification.
He emphasised the cultural significance of structures like the Karaliya Convention Centre and expressed plans to enhance Kandy’s cultural infrastructure by introducing a modern library.
Addressing the economic challenges faced by the country, President Wickremesinghe discussed negotiations with various nations and organisations to secure loans, highlighting the successful agreement with the IMF.
He stressed the need to increase GDP and achieve economic goals by 2024, despite facing a deficit of 534 billion rupees. The President also addressed the decision to increase VAT as a necessary step to rescue the economy from bankruptcy.
President Wickremesinghe discussed upcoming development projects, including the Kandy development programme and a multimodal transport centre in Kandy. He outlined plans to upgrade infrastructure, construct a modern library, and complete projects within the next five years.
The President concluded by expressing gratitude for the inauguration of the Karaliya Convention Centre, emphasising its significance for the community and future generations of artists.
Public Security Minister Tiran Alles says special operations will be carried out from now onwards to combat organised crimes & narcotics drugs.
Govt’s move to hike the VAT from 15% to 18% and to impose the 18% VAT on a host of items that had previously been exempted from the tax generates anger among Opposition MPs and most of the people: critics say SLPP had voted in support of the VAT (Amendment) Bill to ensure its passage through Parliament.
Former CB Governor and State Finance Minister Ajith Nivard Cabraal says the unbearable VAT and other tax increases is a part of the “IMF package”: asserts the floating of the currency, lifting of import controls, very high interest rates, 200-300% increase in utility prices, desperate efforts to sell SOEs, acute trimming of public service, etc are also part of the IMF deal: warns the living conditions of the SL people would become a lot worse next year.
Major General Harendra Pieris of the Gajaba Regiment appointed Chief of Staff of the SL Army.
State Trading Corpn says a ship carrying a consignment of 15 mn imported eggs is expected to arrive in Sri Lanka today: also says the Corpn has made arrangements to distribute 10mn eggs, which have been already-imported & quality-assured, to Sathosa outlets from tomorrow.
Met Dept warns the prevailing showery conditions will increase over most of the island due to a low-level atmospheric disturbance in the vicinity of SL associated with easterly waves: also issues an Advisory for heavy rains in Western, Sabaragamuwa, Southern, Northwestern, and Eastern Provinces and in the Nuwara-Eliya and Polonnaruwa districts.
Acting IGP Deshabandu Tennakoon says underworld activities are prevalent in 43 police domains within 2 provinces: emphasises that despite claims that there is a rapid increase in the operation of underworld activities and drug rackets throughout Sri Lanka, this is not so.
SJB MP Eran Wickremaratne says a future SJB Govt would continue the IMF programme: also says the VAT increase has posed many problems for the public: asserts that direct tax collection should be streamlined to increase Govt revenue without resorting to indirect taxes such as VAT.
Finance Ministry earmarks distillery companies to raise next year’s excise revenue target by Rs.50 bn through the introduction of revenue collection measures: under the new directive to be issued by the Excise Dept, hotels, restaurants, liquor shops, bars & supermarkets will be given only a 7-day credit period by the manufacturer.
Newly appointed Cricket Selection Committee led by Upul Tharanga, reportedly decides to change the leadership roles for the Sri Lanka Test, ODI and T20 teams: Test team – Dhananjaya de Silva (captain) and Kusal Mendis (vice-captain): ODI team – Kusal Mendis (captain) and Charith Asalanka (vice-captain): T20 team – Wanindu Hasaranga (captain) Charith Asalanka (vice-captain).
Colombo (LNW): The Ministry of Agriculture and Plantation Industries in Sri Lanka is responding to global demand for king coconuts by taking initiatives to cultivate it as a prominent export crop.
Minister of Agriculture, Mahinda Amaraweera, highlighted the substantial demand for Sri Lankan king coconuts in the United Arab Emirates, with 200 containers exported monthly, selling at the equivalent of 2,500 rupees in coastal regions.
Recognising the uniqueness and superior taste of Sri Lankan king coconuts, the plan is to brand them as “Sri Lanka Sweet Coconut” for global recognition. The Coconut Development Board and the Coconut Development Authority will collaborate on this branding effort.
The establishment of a regulatory system by the Coconut Development Authority has increased the value of a king coconut to about 0.8 dollars (approximately 296 rupees) at UAE ports.
Sri Lanka is currently exporting 252,000 king coconuts per week to the UAE, generating an impressive income of 2 billion rupees last year, with an expected income of 6 billion rupees this year.
To further support this thriving industry, a king coconut export model village was recently established in Muruthawela.
As part of a pilot project, 1,500 coconut saplings were distributed to families, emphasising the government’s commitment to expanding and promoting the cultivation of king coconuts for international markets.
Colombo (LNW): Sri Lanka is trying to attract Arab visitors by promoting the travels of the famed 14th-century explorer Ibn Battuta, Colombo’s envoy to Riyadh said on Saturday.
The famed Moroccan explorer’s ship arrived in the northwestern port of Puttalam from the Maldives in September 1344. At that time, Puttalam was under the rule of the king of Jaffna, who received him with honors.
He spent a few days there, entertaining the king who, as he recalled in his “Travels,” understood Persian and was interested in his voyages and stories about the rulers of Africa, the Middle East and South Asia whom he had met since starting his journeys in 1325.
Ibn Battuta then went on a pilgrimage to Adam’s Peak, a 2,243-meter tall conical sacred mountain located in central Sri Lanka, which is venerated by Muslims as the site of the footprint of the first man and prophet, and is a UNESCO World Heritage Site.
The king gave him a palanquin and sent men to accompany him.From Adam’s Peak, he took a southern route to Dondra, a southern coastal town, which was a rich temple port town complex.
It was destroyed by the Portuguese in the 16th century.From Dondra, Ibn Battuta went to Galle and Colombo, and from there, he went back to Puttalam and sailed to the coast of Tamil Nadu.
Sri Lanka, whose economy is highly dependent on tourism, is now hoping to attract visitors from Arab countries by evoking the memory of his travels.
“It’s important to refresh the memories of this historic visit and project it among the Arabs,” P.M. Amza, ambassador of Sri Lanka to Saudi Arabia, told Arab News.
“Ibn Battuta is a celebrated traveler … We believe such a celebrated traveler’s connection with Sri Lanka will be of definite attraction to the tourism sector of Sri Lanka.”
Earlier this week, the embassy in Riyadh inaugurated the Ibn Battuta Trail as part of the Sri Lankan Foreign Affairs Ministry’s economic diplomacy program in the Kingdom.
The trail package follows the footsteps of the famed traveler to Adam’s Peak with highlights including cultural attractions, wildlife, nature, adventure activities, and cuisine.
Amza was hopeful that it would contribute to increasing arrivals of Saudi travelers, which have dropped since the COVID-19 pandemic.
“We used to attract over 35,000 Saudi tourists to Sri Lanka annually before 2019 and it has significantly dropped since 2019,” he said.
“Now there is a renewed interest, and we would like them to explore Sri Lanka’s beauty, beaches, waterfalls, rich culture, hospitality, nature and adventure.”
Colombo (LNW): Horton Plain and its surrounding areas are the highest plateau in Sri Lanka with an elevation ranging between 1800m and 2300m in the Central Highland of the country covering 3162 hectares to be developed as a geo tourism destination on the directions of the President Ranil Wickremasinghe.
The President emphasised the potential for the nation to generate significant foreign exchange by strategically developing Horton Plain and its surrounding areas, known for their appeal to both local and international tourists, with a focus on attracting high-end tourists.
Additionally, the President underscored the importance of ensuring that all activities align with environmental sustainability and adhere to eco-friendly practices.
He inquired about the living conditions of the residents in the villages surrounding the park, highlighting the potential improvement in their lives through the promotion of the tourism industry
President Wickremesinghe yesterday emphasised the necessity to transform Horton Plains National Park and its surrounding areas into a premier destination for high-end tourists.
He made these remarks highlighting economic values for recreational planning of Horton Plains after an observation tour in Horton Plains National Park.
A comprehensive Development plan is to be devised soon on the directions of the President harnessing maximum economic benifts while conserving natural eco system, official sources revealed.
The Geo tourism potential is to be evaluated using an assessment methodology with mathematical formulas. Scientific values, additional values and vulnerability.
According toa prviou study, National Park possesses high scientific value (ScV 56.48%), moderate additional values (AdV 38.25%) and a high level of vulnerability.
There was long felt need for planners to institute proper recreational schemes to enhance the welfare benefits of visitors. The economic valuation is bital in policy decisions relating to recreational planning in national parks, an eminent economist said.
President Wickremesinghe further conducted a survey of the lands owned by the Department of Wildlife and Forest Conservation related to Horton Plains National Park using map sources.
During this assessment, he directed officials to compile a comprehensive map encompassing all lands associated with both Horton Plains National Park and its associated region, with a prompt submission deadline.
Subsequently, the President conducted an observation of the road passing through the Udaveriya Estate and its vicinity.
Colombo (LNW): ZRA Company Ltd., a privately owned firm has taken over two collapsed companies belonging to the defunct conglomerate Ceylinco Group, Finance & Guarantee Real Estate Company Ltd., and Finance & Guarantee Property Developers (PDL), under the directives of the Supreme Court.
Being one of the three bidders ZRA Holdings succeeded in clinching the deal under the supervision of the Central Bank and filtration by KPMG Public Accountants & Management Consultants.
Both Companies collapsed in 2008 when there was a run on the deposits held by them as well as a run on deposits held by other subsidiaries and related companies in the Ceylinco Group.
After a lapse of nearly 15 years the nearly 4000 depositors with deposits amounting to around Rs. 4,200 Million will be able to get a part of their life long savings from the two Companies.
The Settlement Plan prepared by the Central Bank in 2017 and submitted to the Supreme Court based on the value of Company assets at the time specified that the depositors in RECL be paid 61% on the deposits without any interest thereon and depositors in PDL be paid 51% of the deposits without interest thereon.
The unsecured creditors were allowed payment at 70% of the value of amounts due to them. The secured creditors are not mentioned in the Plan thus prima facie allowing 100% settlement to them.
Records in both Companies together reflect nearly 4000 depositors – some dead, some gone abroad, some broken down in health and some made paupers in the long drawn struggle to claim their life long savings.
ZRA Holdings also secured the Fingara International Cricket Academy and the Fingara Town & Country Club which are wholly owned subsidiaries of The F&G Real Estate Company.
The entire package of company assets now amounts to nearly Rs. 8,500 Mn and liabilities of Rs 4,200 Mn were given to ZRA Holdings for a paltry sum of Rs 500 Mn investment in the Companies.
A smart move by ZRA which went unnoticed by the authorities is that ZRA secured shares in the Company at a price of 10 cents per share thus getting 2,500 million shares for a price of Rs 250 Mn in each of the two Companies while agreeing to issue shares to the Depositors at Rs. 10 per share.
Steps are being hurriedly taken to issue the non-voting shares which will be about 2 million shares in each company making it a negligible minority shareholding. The once vociferous and active Depositor Associations have gone silent on this issue.
The instalment payments of the 51% and 61% of deposits will be paid in 4 instalments every 6 months commencing from 11th March 2024 and ending in 11th September 2025.
The New Board of Directors in F&G RECL and F&G PDL and the Cricket Academy and the Town & Country Club Include P.S Subasinghe, M. Edirimanne, L. J. Isaac, Dixon Nilaweera and Ranjan Silva.
Colombo (LNW): The United States of America and the Ceylon Chamber of Commerce welcomed the IMF Executive Board approval for Sri Lanka’s first Extended Fund Facility review for growth enhancing reforms.
“We welcome the positive news from the IMF Board about the completion of the first Extended Fund Facility review with Sri Lanka, providing access to about $337 million for Sri Lanka to use to support its economic reforms and policies,” said US Ambassador to Sri Lanka Julie Chung.
She said that this crucial step for Sri Lanka emphasizes the continued importance of sustained reforms, and improved governance for the country’s progress, while safeguarding the most vulnerable.
The Ambassador said that the United States will continue to support Sri Lanka’s path to economic stability and prosperity.
On Wednesday (12), the IMF Board completed the first review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with access to about US$ 337 million to support its economic policies and reforms.
The IMF said that Sri Lanka’s performance under the program was satisfactory.
“All but one performance criteria and all but one indicative targets were met at end-June. Most structural benchmarks due by end-October 2023 were either met or implemented with delay,” it added.
The Ceylon Chamber of Commerce welcomes the Board approval of the International Monetary Fund’s (IMF) completion of its first review under the 48-month Extended Fund Facility (EFF) with Sri Lanka.
“This milestone, granting Sri Lanka access to approximately $ 337 million, underscores the nation’s commitment to fulfilling key performance criteria and benchmarks,” Ceylon Chamber said in a statement.
“Notably, this includes the release of the Governance Diagnostic Report and initiating debt restructuring agreements with key international creditors.
These steps signify Sri Lanka’s robust commitment to reform, particularly in revenue-based fiscal consolidation, bank recapitalisation, and enhanced financial supervision, aligning with efforts to restore debt sustainability, rebuild reserves, reduce inflation, and ensure financial stability.
The Government’s dedication to improving governance and safeguarding the vulnerable sectors of society is also commendable,” the Ceylon Chamber said.
Acknowledging these achievements as highlighted by the IMF, the Ceylon Chamber emphasised the need to continue this reform momentum.
Despite the advancements made, unchanged business sentiment since late 2023 reflects subdued confidence primarily due to persistent challenges, underscoring the imperative for continual reform, particularly in fostering growth.
In light of recent increases in taxation, which has contributed to inflation and impacted people’s purchasing power, the Chamber underscored the necessity of economic growth to improve these aspects.
The Ceylon Chamber said it advocates prioritising sectors such as tourism, ports and logistics, renewable energy, and exports and emphasises the importance of digitalisation of revenue authorities and other government agencies, as well as the introduction of advanced technology in the agricultural sector.
The digital initiatives aligned with the IMF’s guidelines are crucial for enhancing fiscal efficiency, transparency, and governance.
