State Rural Road Development Minister Sivanesathurai Chandrakanthan issued a pressing directive to promptly resume and expedite the completion of rural road development projects in the Eastern Province, originally halted midway under the Integrated Road Development Programme (I Road Project) supported by the Asian Development Bank (ADB).

Speaking on the status of ongoing projects and the challenges faced during their implementation, the State Minister convened a discussion at the State Rural Roads Development Ministry in Sethsiripaya, emphasizing the need for resolution.

During the meeting, the State Minister urged the Project Director overseeing the I Road Project to prioritize the completion of rural road development initiatives in Ampara, Trincomalee, and Batticaloa districts, emphasizing the immediate need to expedite these endeavors.

Furthermore, the project engineer received directives to accelerate the installation of essential road infrastructure such as signboards, white lines, and pedestrian crossing markings on completed roads.

The progress review meeting witnessed the participation of several officials, including MPs D. Weerasinghe and Kapila Athukorala, alongside Rural Road Development State Ministry Additional Secretary B. Ranaweera, and the Project Director of the Integrated Road Development Programme, collectively strategizing to overcome obstacles and propel the swift completion of vital rural infrastructure projects in the region.

Health Minister Dr. Ramesh Pathirana underscored the critical need for revitalizing Sri Lanka’s primary, secondary, and tertiary healthcare services, emphasizing the significance of restoring credibility within the population. Speaking to the media following an inspection tour of Maharagama Apesksha Hospital, the Minister highlighted key insights into the current state of healthcare in the country.

Addressing the country’s abundant human resources within the healthcare system and its robust infrastructure, the Minister emphasized the need for a structured network to efficiently deliver health services. He expressed concern over the escalating number of children affected by cancer in Sri Lanka, stressing the urgency of implementing awareness programs to combat both communicable and non-communicable diseases effectively.

Dr. Pathirana acknowledged Sri Lanka’s unique healthcare landscape, extending from basic medication like Paracetamol to advanced treatments such as radiation therapy, alongside provisions for food and drink, all without the necessity of insurance coverage.

During the visit, the Minister inspected the ongoing construction of a four-story ward complex, funded by the Ruhunu Maha Kataragama Temple at a cost of Rs. 150 million, demonstrating collaborative efforts to enhance healthcare infrastructure.

Recognizing the challenges faced by hospital staff, Minister Pathirana emphasized the continuous maintenance of adequate medicine stocks within the hospital premises.

The event saw the presence of Hospital Director Dr. Aruna Jayasekara, Basnayake Nilame of Ruhunu Kataragama Temple Dishan Gunasekara, Deputy Director of the Hospital, administrative officers, doctors, and dedicated hospital staff, collectively engaging in discussions aimed at advancing healthcare services in the region.

The Agriculture Department has issued a crucial warning to farmers regarding three destructive insect pests currently ravaging paddy cultivation across multiple districts of the island. With approximately 22,000 hectares of paddy fields affected by the White Back Plant Hopper, Gray Plant Hopper, and Leaf Curl worm, Agriculture Director General Malathi Parasuraman stressed the urgency for farmers to be vigilant.

Parasuraman urged farmers to promptly notify Agriculture Department officials upon detecting these insects in their fields and to strictly adhere to the guidance provided by agriculture consultants.

Asserting that preventive measures can mitigate these insect damages, Parasuraman highlighted that agricultural consultants and officials across all areas have been duly notified. Furthermore, Parasuraman disclosed the deployment of specialized agriculture teams for comprehensive field inspections.

In a cautionary advisory, Parasuraman warned against the use of substandard insecticides or following recommendations from sources lacking expertise in handling these pests. Mixing insecticides with other substances was discouraged, emphasizing that ineffectual application of chemicals could prove futile due to the pests’ resistance to harmful compounds.

The Director General stressed the significance of employing only the pesticides recommended by the Agriculture Department, emphasizing the importance of strategic steps to combat these resilient pests effectively.

The Minister of Urban Development and Housing, Prasanna Ranatunga, disclosed ongoing negotiations between the Sri Lankan and Japanese governments to revive the dormant Japan-funded Light Rail Transit (LRT) initiative. Amid diplomatic discussions, both parties are recalibrating the project’s scope and estimated costs, primarily impacted by the COVID-19 pandemic and economic challenges. Ranatunga expressed optimism, foreseeing the project recommencing shortly.

The recalibration process, central to the bilateral dialogue, is slated to lead the way for next year’s reactivation of public facility relocation and land acquisition efforts. Following discussions between Sri Lanka and Japan, decisions have been charted to propel the project’s progression. An initial feasibility study laid the groundwork for this venture, appointing an international consulting firm to devise comprehensive blueprints, contracts, tender documents, estimates, and monitoring services for the Malambe to Pettah LRT route, with an initial allocation of US$120 million.

Commencing in April 2019, this preparatory phase was slated for a 91-month completion. However, the project encountered a halt on December 31, 2020, after a 21-month consultation period. Notably, despite the cessation of activities, 60% of the fundamental scheme plans and 78% of the detailed blueprints were already finalized. Soil tests and pre-feasibility studies were also completed until the Malambe section.

The acquisition of land for the project initiated, identifying a total area of 22 hectares. Although much of the land acquisition phase is near completion, compensation for the acquired lands remains outstanding.

With substantial progress made in planning and preliminary groundwork, the Sri Lanka-Japan negotiations are pivotal in rekindling hopes for the LRT project’s revival, poised to alleviate transportation challenges and enhance connectivity across targeted areas.

1. Speaker Mahinda Yapa Abeywardana endorses Appropriation Bill 2024, VAT (Amendment) Bill, & Finance Bills passed in Parliament on 11th Dec’23.
2. Litro Gas Co. says price of a domestic gas cylinder “will increase considerably” after the VAT is increased to 18% from Jan’24: All Ceylon Communication Owners’ Association Chairman Indrajith Perera says the retail prices of all mobile phones, accessories & stationary items will also increase and that it will affect mobile sellers & importers as prices of common accessories, such as chargers, back covers, displays, cables, screen protection shields, & other electronic parts will increase.
3. Princess Anne, the Princess Royal of UK expected to visit SL from January 10-13, 2024 at the invitation of the SL Govt to participate in events connected with the 75th Anniversary of diplomatic relations between SL & UK.
4. Colombo Stock Exchange continues to crash: benchmark ASPI loses for the 2nd consecutive session to 10,783 points: foreign investors continue to exit.
5. Ministry of Trade Secretary A M P M B Atapattu says steps will be taken to import eggs & chicken if a shortage is noticed in the days to come: media had reported recently that eggs & chicken are out of stock in mainstream markets such as Pettah, Gampaha & Kandy.
6. Former TNA MP Suresh Premachandran demands to know who represented SL at talks in Kathmandu, Nepal in April this year, which led to the so-called Himalaya Declaration jointly prepared by the “Sangha for a Better SL” and the Global Tamil Forum: also questions the validity of the initiative.
7. Ministry of Health says at least 80% of the annual deaths in SL are due to Non-communicable Diseases and their complications: also says 15% of the population under 35 suffer from diabetes while 35% suffer from high blood pressure.
8. NPP leader Anura Kumara Dissanayake says the assets of at least 1183 Small & Medium Scale businesses were repossessed and auctioned by banking institutions through “Parate Executions” this year – 2023.
9. Chamber of Garment Exporters commends the remarkable resilience of its SME membership for rapidly adapting to tough global market conditions and ending the year with “zero closures”: the SLCGE comprises 76 members which operate outside SL’s Free Trade Zones, has been hit hard with a 20% reduction in orders.
10. Family Health Bureau says a hotline telephone number which is operational around the clock has been introduced to report incidents related to domestic violence.

The Foreign Ministry of Sri Lanka has announced the impending signing of the Sri Lanka-Thailand Free Trade Agreement (SLTFTA) in February 2024. To facilitate this milestone, negotiations for the agreement are set to conclude by the end of this month, as disclosed by the ministry.

This revelation follows the successful culmination of the eighth round of SLTFTA negotiations held in Bangkok, Thailand, from November 27th to 29th. Chaired by Auramon Supthaweethum, Thailand’s Chief Negotiator, and K. J. Weerasinghe, Sri Lanka’s Chief Negotiator, the talks marked significant progress.

During a seminar in Bangkok titled “Trade and Investment Opportunities in Thailand and Sri Lanka,” Sri Lanka’s Ambassador and Permanent Representative to the UNESCAP, C. A. Chaminda I. Colonne, highlighted the longstanding historical ties based on shared Buddhist values between the two nations. Despite this, the bilateral trade volume in 2022 stood at a modest USD 352 million, suggesting substantial untapped potential.

Ambassador Colonne underscored that investments from Thailand into Sri Lanka remained minimal, recording merely USD 0.74 million in 2022. He outlined the vision of the Sri Lankan Government, aiming to integrate into the global economy. In this context, Sri Lanka aspires to expand its economic and trade connections, starting from South Asia and extending towards the East. Additionally, Sri Lanka has expressed interest in joining the Regional Comprehensive Economic Partnership (RCEP), signifying its commitment by submitting a letter of intent.

Mahinda Yapa Abeywardana, the Speaker of Parliament, has given his approval to critical financial legislation, including the Appropriation Bill for the year 2024, the Value Added Tax (Amendment), and Finance Bills, recently passed in Parliament.

The national budget for the upcoming fiscal year was crafted against the backdrop of an unprecedented economic downturn, marked as the most significant in the recorded history of our nation.

This year’s budget outlines substantial increases in funding across various sectors, including government employee salaries, retirement benefits, poverty alleviation programs like Aswasuma, education, healthcare, and road infrastructure development.

Among the notable provisions, government employees are slated to receive a 10,000 rupee increment in their living allowance from January 1st, 2024. While the policy goes into effect in January, the disbursement of the adjusted amount is scheduled to commence in April.

To address the period from January to April, arrears owed to government employees will be distributed in installments starting from October of the following year.

Currently operating within the framework of the International Monetary Fund’s credit facility, the nation is bound by stringent economic policies.

Despite the diverse expenditure propositions in this year’s budget, the central challenge lies in securing sufficient state revenue, an issue emphasized in the International Monetary Fund’s staff report released on December 12th alongside the second tranche disbursement.

“Even with revenue measures adopted so far, government revenue remains substantially lower than in other emerging market and middle-income countries.”

The government’s primary revenue-generation strategy revolves around a proposed hike in the Value Added Tax (VAT) rate, scheduled to escalate from 15% to 18% effective January 1st.

Moreover, nearly 100 previously exempted goods and services are expected to be brought under the VAT framework as part of the proposed reforms.