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Foreign inflows from remittances, tourism/investments record Rs 640 mn in Sep

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By: Staff Writer

Colombo (LNW): Much needed foreign exchange inflows into the country has recorded a new high of Rs 640 million in September 2023 signifying the recovery in the external sector performance even under economic hoodwinds.

Workers’ remittances has increased to US $ 482 million in September 2023 in comparison to $ 359 million in September 2022 and $ 499 million in August 2023, Central Bank data shows

Meanwhile, based on the provisional data, total departures for foreign employment in September 2023 and during January to September 2023 amounted to 25,648 and 222,794, respectively, in comparison to the total departures of 311,056 recorded in 2022.

Tourist arrivals declined to 111,938 in September 2023, compared to 136,405 arrivals recorded in August 2023, reflecting the seasonal pattern.

However, the cumulative tourist arrivals improved notably during January to September 2023 to record 1,016,256, compared to 526,232 arrivals recorded during the corresponding period in 2022.

Earnings from tourism in September 2023 were estimated at US dollars 152 million, in comparison to the estimates of US dollars 211 million in the previous month and US dollars 41 million in the corresponding month in 2022.

Consequently, earnings from tourism during January to September 2023 amounted to US dollars 1,457 million, compared to US dollars 873 million in the corresponding period in 2022. India, China, United Kingdom,

Germany, and Russia were the main source countries for tourist arrivals during the month of September 2023.

Foreign investments in the government securities market recorded a lower net outflow of US dollars 17 million in September 2023, compared to the net outflow of US dollars 37 million in August 2023.

The cumulative net inflow during January to September 2023 amounted to US dollars 335 million.

Meanwhile, foreign inflows to the Colombo Stock Exchange (CSE), including both primary and secondary market transactions, recorded a net inflow of US dollars 11 million during January to September 2023.

Gross official reserves stood at US dollars 3.5 billion by end September 2023. This included the swap facility from the People’s Bank of China equivalent to around US dollars 1.3 billion which is subject to conditionalities on usability.

The Central Bank absorbed 83 million US dollars from the domestic foreign exchange market on a net basis during the month. Overall, the Central Bank has purchased around US dollars 1.6 billion, on net basis, during January to September 2023.

Sri Lanka Hosts Eleventh Inter-Parliamentary Consultations with European Parliament Delegation

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On Tuesday, the 31st of October, the eleventh Inter-Parliamentary consultations between Sri Lanka and the delegation for relations with the countries of South Asia of the European Parliament (DSAS) were convened at the Sri Lanka Parliamentary premises.

A diverse delegation, headed by Foreign Affairs Minister M.U.M. Ali Sabry PC, engaged in an interactive discussion with the visiting European Union (EU) delegation, led by Heidi Hautala, a Finnish Member of the European Parliament (MEP) representing the Greens and serving as the Vice-President and Rapporteur for the New GSP Regulation of the European Parliament.

The discussion primarily revolved around matters related to bilateral cooperation with the aim of further strengthening ties between the two legislatures. The Sri Lankan delegation provided an update to the MEPs on the current economic and political developments within the country, including progress in reconciliation and the human rights situation, as well as the proposed Anti-Terrorism Act (ATA). EU Co-chair Hautala acknowledged the progress in EU-Sri Lanka bilateral relations and discussed topics of significance to the EU, such as climate-friendly regulations within the European Green Deal, the Ukraine conflict, inflation in the European region, and the future of EU integration.

The Sri Lankan delegation also underscored the significance of GSP+ concessions, which offer duty-free access for Sri Lanka’s exports to the EU market, and requested the European Parliament’s support for the continued access to these concessions.

Foreign Affairs State Minister Tharaka Balasuriya and eight Members of Parliament representing various political parties in Sri Lanka, including the Sri Lanka Podujana Peramuna (SLPP), the Samagi Jana Balawegaya (SJB), and the Illankai Tamil Arasu Kachchi (ITAK), actively participated in the discussions.

The visiting EU delegation consisted of Zdzislaw Marek Krasnodebski, a Polish MEP from the European Conservatives and Reformists Group (ECR), Karsten Lucke, a German MEP from the Group of the Progressive Alliance of Socialists and Democrats (S&D), and Ausra Maldeikiene, a Lithuanian MEP from the Group of the European People’s Party (Christian Democrats/EPP).

The consultations involved senior officials from the Foreign Affairs Ministry, the Commerce Department of Sri Lanka, and officials from the EU delegation in Colombo.

Ali Sabry Launches Orientation Programme for Sri Lanka’s Heads of Mission Designate

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On November 01, 2023, Foreign Minister Ali Sabry inaugurated a two-week Orientation Programme for the Heads of Mission designate of Sri Lanka at the Ministry of Foreign Affairs.

During the event, Minister Sabry provided an overview of Sri Lanka’s foreign policy priorities under the leadership of President Ranil Wickremesinghe. The Heads of Mission have assumed their roles during a critical period where their contributions are vital in supporting Sri Lanka’s economic recovery.

Foreign Secretary Aruni Wijewardane elaborated on the responsibilities of a Head of Mission as a manager and leader, addressing the challenges faced in today’s complex international landscape.

The Orientation Programme will comprehensively cover key areas of focus for Sri Lanka’s missions abroad, including trade and investment, foreign employment, tourism, consular affairs, and public diplomacy. Additionally, it will involve visits to the Northern, Eastern, and Southern Provinces, along with interactions with key stakeholders in the private sector and civil society.

The list of newly appointed Heads of Mission includes Ambassador-designate to Italy Satyajit Rodrigo (SLFS), Ambassador-designate to Egypt Madurika Weninger (SLFS), High Commissioner-designate to Bangladesh Dharamapala Weerakkody (SLFS), High Commissioner-designate to Singapore Senerath Dissanayake (SLFS), Ambassador-designate to Belgium and the European Union Chandana Weerasena (SLFS), High Commissioner-designate to India Kshenuka Senewiratne (retired SLFS), High Commissioner-designate to Pakistan Admiral Ravindra Wijegunaratne, Ambassador-designate to Nepal Air Marshal Sudharshan Pathirana, Ambassador-designate to Cuba Admiral Nishantha Ulugetenne, and High Commissioner-designate to the UK Rohitha Bogollagama.

Dinesh Gunawardena Addresses Land Issues at Vavuniya District Food Security Programme

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During the Vavuniya District Food Security Programme held on Wednesday (1) at the Vavuniya District Secretariat, in conjunction with the New Village – New Country National Programme, Prime Minister Dinesh Gunawardena addressed the critical matter of land ownership issues in the region.

The Prime Minister emphasized, “One of the issues prevailing in the Vavuniya District is the land issue. The second problem is the issues that have arisen for a long time due to conflict with the Forest Conservation Department and forest conservation rules and regulations. When I presented the project of Vavuniya Water Scheme as the Water Supply Minister, one department after another came up with hurdles and did not give permission to start the water scheme. But somehow provisions were allocated, and it was managed to transport water through the forest and implement the project. Now water is brought through pipe lines laid through the jungle.”

He further discussed the challenges in regions declared as forests, especially in the Northern Province, and the need to address these issues. He mentioned, “This problem exists in Moneragala, Ampara, and Trincomalee districts. But the farmers raise their cattle on those lands. These lands were used for traditional farming. We will give the necessary powers to the Government Agent to hold a special discussion and ease this problem.”

The Prime Minister also highlighted the importance of technological advancements and digital methods in addressing various challenges. He mentioned, “The Registrar General Department has started a new program to register birth certificates by using technology and digital methods. It is significant to provide solutions to such situations by conducting mobile services and providing copies of birth certificates and other documents through new technologies.”

He expressed the vision of transforming Vavuniya into a self-sufficient, developed village with a focus on paddy cultivation and various crops. The Prime Minister emphasized the need for systematic planning and implementation to achieve this goal and create a better future for the people living in the area.

The Prime Minister also discussed the transformation of Vavuniya into an export village and the importance of high-yielding seeds for farming. He mentioned the government’s commitment to support low-income communities during the economic crisis and the appointment of teachers to address subject-specific shortages at the provincial and district levels.

The Prime Minister concluded by addressing the upcoming Grama Niladhari exam and the filling of vacancies, with a focus on remote areas and special qualifications.

TNA-MPs Selwam Adaikalanadan, Charles Nirmalanadan, and Vino Noharathalingam, along with EPDP-MP Kulasingham Dilibaran, also shared their insights during the event.

The event saw the participation of various dignitaries and government officials, including Northern Province Governor P.S.M. Charles, State Ministers Kadar Mastan, Janaka Wakkumbura, Ashoka Priyantha, MP Yadamini Gunawardena, Adviser of the President Dr. Suren Batagoda, Secretary to the Ministry of Public Administration Ranjith Ashoka, Secretary of the Northern Province S.M. Saman Bandulasena, District Secretary of Vavuniya P.A. Sarachchandra, and other government representatives.

Kasun Rajapaksa of DSI stumbles as Sajith triumphs

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In a recent corporate showdown within the DSI Samson Group, the business world witnessed a dramatic clash as Kasun Rajapaksa, the Group Managing Director, attempted to unseat Sajith Rajapaksa, a pivotal figure in the DRR family. Kasun’s ill-conceived move ultimately backfired, leaving him looking like a corporate fool.

The saga began with an interim court order that allowed Sajith Rajapaksa to retain his roles within the company. Ignoring this legal setback, Kasun Rajapaksa, a former COYLE president and director at Lanka Hospitals, pressed on with plans to convene a board meeting, with the intent of removing Sajith from three companies and five other directorial roles, a move that quickly became the talk of the corporate world.

Kasun’s unwavering determination to hold this special meeting led him to seek another interim court order, hoping to exclude Sajith from the proceedings. The meeting was scheduled at the DSI Samson Group’s headquarters on November 3, 2023.

However, this legal maneuver faced staunch opposition. Lawyers representing Sajith Rajapaksa vehemently argued that removing Sajith from these companies could have catastrophic financial repercussions and endanger their sustainability. Their arguments were bolstered by the fact that the DRR family, represented by Sajith, had been instrumental in the group’s success. Over the past five years, the family’s contributions accounted for nearly 70% of the group’s profits and a remarkable 55% of its net assets during the same period.

The stark contrast in performance is also evident in the DKR family’s corporate scorecard, led by Kasun Rajapaksa. Over the last five years, their leadership resulted in an annual average loss of 28 million in the operation of the Group’s Shoe Manufacturing division. In sharp contrast, during the same period, the DRR family, led by Sajith Rajapaksa, single-handedly steered the DSI Samson Group to astounding annual profits, contributing an impressive 557 million per annum, fueled by a vast network of global exports to over 75 countries.

Following an intense courtroom battle between the legal teams of both parties, the interim order sought by Kasun Rajapaksa was vacated, effectively reinstating Sajith Rajapaksa to his positions within the DSI Samson Group. This legal victory not only preserved the DRR family’s influence but also left Kasun Rajapaksa with a tarnished reputation in the corporate world. His ill-fated power move serves as a cautionary tale for aspiring corporate leaders.

Reported based on facts outlined in court proceedings

Slight Depreciation of LKR Against USD

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The Sri Lankan Rupee has experienced a minor depreciation against the US Dollar in commercial banks within Sri Lanka on November 3 compared to Thursday.

At Peoples Bank, the buying and selling rates for the US Dollar have risen from Rs. 321.40 to Rs. 322.38 and from Rs. 333.17 to Rs. 334.19, respectively.

According to the Commercial Bank, the buying rate for the US Dollar has increased from Rs. 321.64 to Rs. 322.63, while the selling rate has risen from Rs. 332 to Rs. 333.

At Sampath Bank, the buying and selling rates for the US Dollar have also seen an increase, moving from Rs. 323 to Rs. 324 and from Rs. 333 to Rs. 334, respectively.

Government Medical Officers Association’s Provincial Strike Action Persists

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The Government Medical Officers Association (GMOA) is continuing its provincial-level trade union action for the second consecutive day. This 24-hour strike action is now affecting all state hospitals in the Northern Province.

The GMOA initiated its provincial-level trade union action in the Uva Province the previous day. This ongoing strike is part of a planned series of actions, with the North Western Province set to join on November 6, followed by the Sabaragamuwa Province on November 7.

The primary concerns prompting this trade union action include the government’s inability to retain doctors within the country, a situation contributing to the strain on the healthcare system. The GMOA seeks to address these issues and mitigate the potential collapse of the health system.

Appointment of New Inspector General of Police Pending Decision

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Minister of Public Security, Tiran Alles, has revealed that a decision is still pending regarding the appointment of a new Inspector General of Police (IGP). This statement comes in response to an inquiry made by News 1st about the next steps following the three-week service extension granted to the current IGP, C.D. Wickramaratne.

Speaker Mahinda Yapa Abeywardana has noted that the Constitutional Council has not yet received a nomination for the new IGP. The Constitutional Council is scheduled to convene on the 9th of November to discuss this matter.

IGP C.D. Wickramaratne has received three service extensions, including two previous three-month extensions and an additional three-week extension. The recent request by the President to the Constitutional Council sought to extend his service term by another three weeks. However, the Constitutional Council clarified that it does not require the Council’s permission to grant a service extension to the Inspector General of Police.

Sri Lanka Original Narrative Summary: 03/11

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  1. Delegation of 19 Indian officials led by Chief Negotiator Anant Swarup visit SL for extensive discussions on the comprehensive ECTA Agreement: negotiations renewed following SL President’s visit to India recently.
  2. Ministry of Finance increases the Special Commodity Levy on Sugar to Rs.50 per kg from 25 cents per kg.
  3. Reports from Foreign media indicate that 17 Sri Lankans are among the 596 foreign & dual nationals permitted to leave Gaza via the Rafah border between Gaza and Egypt.
  4. The Foundation Laying Ceremony for the 10,000 Indian Housing Program at the Dimbulla Lower Division, Mount Vernon Estate, Kotagala conducted virtually by President Ranil Wickremesinghe & Indian Finance Minister Nirmala Sitharaman to mark the 200th anniversary of the arrival of Indian-Origin Tamils in SL.
  5. President Ranil Wickremesinghe & Indian Finance Minister Hon. Nirmala Sitharaman exchange bilateral documents to enable the execution of projects under the USD 15 million Grant Assistance by India for the “promotion of Buddhist ties between India & SL”.
  6. Supreme Court orders former President Maithripala Sirisena, former Defence Secretary Hemasiri Fernando, former IGP Pujith Jayasundara & former head of the SIS Nilantha Jayawardana to produce their assets and liabilities through affidavits before 30th December’23 since they have failed to pay compensation in the Easter Sunday Attacks case.
  7. Member of the Presidential Advisory Group on Multi-lateral Engagement & Debt Sustainability (who is reported to have advised on the crippling Debt Default announcement) & ex-IMF staffer Dr Sharmini Coorey says the current economic situation of SL is “precarious”: laments the economy is not growing fast enough & a growth rate of 5-6% per annum is imperative to reduce the “already unsustainable public debt level”: warns another debt default would be “disastrous”.
  8. Irrigation Director Sugeeshwara Bandara says the water capacity of all reservoirs has exceeded 50% due to the heavy rains: also says some reservoirs had started spilling and several others are about to spill.
  9. Colombo High Court Judge Navaratne Marasinghe acquits all accused, including SLPP MP Namal Rajapaksa, from the money laundering case involving Gowers Corporate Services (Pvt) Ltd.
  10. SL slump to a humiliating defeat by 302 runs against India in their ICC Cricket World Cup 2023 Group match: India – 357/8 (50 overs), Dilshan Madushanka – 80/5: SL – 55 all out (19.4 overs), Kasun Rajitha – 14: five SL batters dismissed without scoring, while 2 batters were out for 1 each: India secure their place in the Semi-finals, while SL crash out.

Suspension of Liquor Licenses for Five Companies Over Unpaid Tax Arrears

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The Commissioner General of Excise, Saman Jayasinghe, has announced the suspension of the license extensions for five liquor companies due to their failure to settle tax arrears. The annual licenses of these companies were not renewed, and they officially expired on the 30th of October.

These actions were taken in response to outstanding tax arrears amounting to over Rs. 600 million owed by the concerned liquor companies. The suspension serves as a measure to enforce compliance with tax regulations and obligations within the liquor industry.