Colombo (LNW): The Excise Department revealed that the production of liquor at two major distilleries in the country has been temporarily halted due to their delayed tax payments.
W.M. Mendis & Co Ltd and Randenigala Distilleries Lanka (Pvt.) Ltd. experienced a suspension in alcohol production, but the Excise Department later announced their authorisation to resume operations after a payment of Rs. 116 million.
Earlier this month, the licenses of these distilleries, along with three others, were suspended for the same reason.
On November 2, the distillery licenses of Synergy Distilleries (Pvt.) Ltd., Finnland Distilleries Corporation (Pvt.) Ltd., Wayamba Distilleries, W. M. Mendis & Co. Ltd., and Randenigala Distilleries Lanka (Pvt.) Ltd. were all temporarily suspended due to non-payment of taxes.
Colombo (LNW): Speaker Mahinda Yapa Abeywardana is anticipated to disclose the Privilege Committee’s ruling regarding State Minister Diana Gamage and fellow MPs in relation to the recent altercation this (30) morning.
The committee, which investigated the physical altercation involving Gamage, along with Opposition MPs Rohana Bandara and Sujith Sanjaya Perera, within the Parliament lobby, has submitted its findings to the Speaker for announcement.
Colombo (LNW): The Sri Lanka Foreign Employment Bureau (SLFEB) has made a substantial contribution of Rs. 7 billion to the Treasury this year, as Minister of Labour and Foreign Employment Manusha Nanayakkara formally presented a Rs.4 billion cheque to President Ranil Wickremesinghe at the Presidential Secretariat yesterday afternoon (29).
Given the current economic conditions in the country, this significant amount has been allocated from the operating surplus received by the Foreign Employment Bureau. The funds are earmarked for critical activities, including the procurement of essential medicines and the disbursement of government employee salaries.
Of the Rs. 7 billion, a noteworthy sum of Rs.33 billion was directly handed over to the President earlier this year. Additionally, an extra allocation of Rs. 100 million was designated for Apeksha Hospital Maharagama for medicine procurement.
While the Foreign Employment Bureau has previously contributed substantial amounts, with Rs. 3,382 million being one such instance, this Rs. 7 billion contribution represents a remarkable milestone, marking the Bureau’s highest annual contribution within a single year to date.
The occasion was attended by Secretary to the Ministry of Labour and Foreign Employment R. P. Wimalaweera, Chairman of the Sri Lanka Foreign Employment Bureau Hilmi Aziz, and a delegation of senior officials.
Following this, a comprehensive review of the Ministry of Labour and Foreign Employment’s progress in 2023 was conducted. Minister Manusha Nanayakkara briefed the President on key ongoing initiatives, including the “Garu Saru” programme aimed at dignifying individuals in the informal sector in Sri Lanka with a focus on social security programmes. The Minister also highlighted efforts to integrate these individuals into the labour market’s information system.
In addressing challenges associated with the professional guidance activities under the smart club programme of Expatriate Workers’ Associations and the implementation of a licensing system for the import of electric cars, Minister Nanayakkara aimed to enhance the inflow of foreign remittances into Sri Lanka.
The Minister shared achievements, such as receiving US$ 7.5 billion in remittances over the past 18 months, and updated the President on initiatives like the introduction of a pension system for expatriate workers and the establishment of a dedicated terminal for departing workers at the airport.
President Wickremesinghe acknowledged the pivotal role of expatriate workers’ remittances as a primary source of foreign exchange for Sri Lanka. He commended the proactive programme of the Ministry, led by Minister Manusha Nanayakkara, and praised the efforts to reform labour laws through the introduction of the new Employment Security Act.
Colombo (LNW): In his address at the 2023 Sri Lanka Economic Summit, President Ranil Wickremesinghe underscored the critical need for profound economic restructuring to secure the long-term sustainability of the country’s economy.
The Head of State emphasised the imperative of maintaining a steadfast commitment to a new economic policy framework, asserting that such dedication is crucial in preventing the recurrence of economic crises.
The summit, organised by the Ceylon Chamber of Commerce and hosted over two days at the Shangri-La Hotel in Colombo, kicked off on Tuesday (Nov. 28). President Wickremesinghe used the platform to highlight the achievements resulting from the radical economic restructuring undertaken in the past year and presented a comprehensive roadmap for the nation’s economic future.
Commencing his keynote address, Wickremesinghe acknowledged the summit’s theme, “Economic Reform for 2023,” setting the tone for discussions on the imperative economic changes needed for the year ahead.
He questioned whether the transformative measures taken could be labelled as mere reforms, asserting that the changes implemented were more accurately described as a radical restructuring with no possibility of reverting. “It’s a restructuring and a radical restructuring, and there’s no going back,” stated the President, underscoring the irreversible nature of the economic changes.
The president highlighted the progress made in the economy through the government’s radical restructuring efforts over the past year. He stressed the importance of continuing these efforts and working within the framework of the new economic policy to elevate the country to a robust economy resistant to potential downturns. Wickremesinghe’s vision for the economic future relies on the dedication and collaboration of all stakeholders within the specified policy framework.
One of the key achievements mentioned by the president was the successful negotiation with creditors over the country’s debt. He acknowledged the cooperation of all creditor groups and commended their constructive engagement. Notably, negotiations with China Exim Bank resulted in an agreement in principle to restructure the country’s debt, signalling a positive step forward in the economic stabilisation process.
Wickremesinghe highlighted the government’s transparent and good-faith negotiations with creditors, dispelling expectations of challenges in the process. He specifically mentioned the engagement with the Official Creditor Committee and China Exim Bank, showcasing Sri Lanka’s ability to navigate complex negotiations successfully.
The president expressed optimism that the IMF Board would conclude the first review of Sri Lanka’s EFF program within the month of December.
Wickremesinghe outlined the ongoing discussions with external private creditors, emphasising the government’s commitment to reach an agreement on specific restructuring terms with them shortly. A focal point of the restructuring strategy is a reliance on a long-term extension of the debt, with economic principles guiding future negotiations and operations.
In his address, Wickremesinghe touched upon the necessity of adhering to the agreed-upon framework, stressing that deviation could lead to adverse consequences with creditors. He urged the nation to embrace the radical restructuring as a last chance for economic stability, emphasising the need to break away from the cycle of seeking external aid due to mismanagement.
Addressing concerns about consensus, the president acknowledged the challenges of obtaining agreement from political parties and trade unions. He argued that a consensus with those who had not taken responsibility in the past was difficult to achieve. The President called for a united front in recognising the gravity of the economic situation and urged the country to agree on the proposed framework.
Wickremesinghe drew attention to the dangers of remaining a “beggar nation” and the unsustainable practice of seeking financial assistance without addressing the root causes of economic instability. He questioned the wisdom of repeatedly asking other countries for help, emphasising the need for internal reform and competitiveness.
Wickremesinghe underscored the importance of a competitive, export-oriented economy, outlining the government’s vision for a digitalised and green economy. He drew parallels with the economic reforms of 1977, emphasising the need for a new era of economic policies that align with the current global landscape.
Following his address, the president participated in a panel discussion moderated by the Chairman of the Sri Lanka Chamber of Commerce, Duminda Hulangamuwa. The panel included Mr. Montek Singh Ahluwalia, Former Deputy Chairman of the Planning Commission of India.
Colombo (LNW): The Sri Lankan government has announced that it has reached an agreement in principle with its Official Creditor Committee (OCC) on the financial terms of a debt treatment.
Issuing a statement, the Ministry of Finance, Economic Stabilization and National Policy stated that the agreement in principle covers approximately US$ 5.9bn of outstanding public debt and consists of a mix of long-term maturity extension and reduction in interest rates.
The Sri Lankan government has commended the support and cooperation of OCC members in reaching this agreement, which demonstrates a mutual commitment to restoring public debt sustainability in line with the International Monetary Fund (IMF) program targets, the statement mentioned.
The agreement is expected to facilitate a swift approval by the IMF Executive Board of the First Review of Sri Lanka’s IMF-supported program, allowing for the next tranche of IMF financing of about US$ 334 million to be disbursed.
The agreed-upon debt treatment terms will be further detailed and formalized in a Memorandum of Understanding (MoU) between Sri Lanka and the OCC, which will then be implemented through bilateral agreements with each OCC member, in accordance with their laws and regulations.
The Sri Lankan government looks forward to a prompt implementation of the agreed terms, the Finance Ministry said.
Speaking in this regard, Secretary to the Treasury/Ministry of Finance, Economic Stabilisation and National Policies, K. M. Mahinda Siriwardana said:
“This agreement marks a landmark step for Sri Lanka. We extend our sincerest thanks to the OCC and its co-chairs, Japan, India and France, for the unwavering support in resolving our country’s public debt situation. This agreement serves as a key milestone in Sri Lanka’s ongoing endeavour to achieve public debt sustainability and to foster economic recovery.”
The Finance Ministry said this agreement in principle, together with the agreement in principle reached last month with China Export-Import (Exim) Bank, goes a long way in dealing with Sri Lanka’s external bilateral debt restructuring.
The next steps will include finalizing similar agreements with our remaining official bilateral creditors, including Saudi Arabia, Pakistan, Kuwait and Iran, altogether representing a further US$ 274 million of outstanding claims, the statement read further.
Sri Lankan government says it now intends to focus its efforts on reaching comparable debt restructuring agreements with external commercial creditors, and in particular with its holders of international sovereign bonds. “Good faith engagement is still ongoing in that regard, and the authorities would like to invite its bondholders to now accelerate the discussions with a view to coming to a mutually acceptable agreement as promptly as possible.”
The authorities have reaffirmed their commitment to transparency, comparable treatment of all participating external creditors, and full compliance with the debt sustainability targets under the IMF-supported program.
Earlier today, the OCC confirmed that it has reached an agreement with Sri Lanka on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF.
Prime Minister Dinesh Gunawardena addressed Parliament, revealing the discovery of a fraudulent scheme exploiting his name, purportedly offering jobs in Denmark to Sri Lankan youth. He informed the assembly that the Criminal Investigation Department has initiated an inquiry into this racket.
The Prime Minister clarified that he bears no involvement in this deceptive operation. He highlighted that the group behind this illicit activity falsely promised employment opportunities in Denmark to young individuals, deceiving them into paying Rs. 600,000 each.
Opposition Leader Sajith Premadasa raised concerns about this issue during the parliamentary session. While expressing his disbelief in the Prime Minister’s involvement, he highlighted the ongoing program orchestrated by an individual and a group falsely claiming affiliation with the Prime Minister’s Coordinating Secretary. Premadasa urged for a thorough investigation into this matter to uncover the truth behind the fraudulent scheme.
Officials from the Inland Revenue Department have emphasized the significance of adhering to the existing Inland Revenue Law, which mandates the submission of annual income reports for the assessment year 2022/2023 by November 30th, covering the period from April 1st, 2022 to March 31st, 2023. Failure to meet this deadline will result in penalties, with a fine of 50,000 rupees and an additional 5% of the tax payable for individuals maintaining tax files without submitting the report on time.
These remarks were made during a workshop organized by the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis, held in Parliament with support from the Inland Revenue Department. Chaired by Hon. Gamini Waleboda, Member of Parliament and Committee Chair of the Sectoral Oversight Committee, the workshop saw attendance from State Ministers, MPs, and parliamentary officials. Representatives from the Inland Revenue Department, including Senior Commissioner Sujeewa Senadheera, Senior Deputy Commissioner Nandana Kumara, and Senior Deputy Commissioner M.H.D. Meneripitiya, provided detailed briefings.
The workshop aimed to educate attendees about the implications of the current income tax law, specifically highlighting the necessity of income reports and the consequences associated with failing to provide them. Notably, it was disclosed that income tax files have been initiated for all Members of Parliament, with practical guidance provided on completing the income report through the Inland Revenue Department’s website and submitting it online to the department’s system.
Members of Parliament actively engaged with officials during the workshop, seeking clarifications on potential issues that might arise during the report submission process.
Save the Children, in collaboration with the United States Department of Agriculture (USDA), is set to embark on the second phase of the PALAM/A initiative, injecting a substantial US$32.5 million. This program aims to expand the integrated Food for Education Programme, focusing on enhancing literacy and nutrition for over 200,000 schoolchildren in 917 primary schools and 20,000 preschoolers across eight districts in Sri Lanka.
The project aligns with ongoing efforts to bolster the National School Nutrition Programme in partnership with the Sri Lankan government, emphasizing sustainable strategies for improved learning outcomes.
Beyond alleviating short-term hunger among school-age children, this initiative aims to heighten student attendance, elevate literacy instruction quality, enhance classroom attentiveness, and instill healthy dietary habits. This comprehensive approach seeks to address the educational and nutritional challenges accentuated by Sri Lanka’s economic crisis since 2022, promising a brighter future for the nation’s children.
Save the Children’s earlier PALAM/A Project successfully reached 95,000 children in 852 schools across seven districts, collaborating effectively with Sri Lanka’s key ministries, including Education, Health, and Finance Economic Stabilisation and National Policies. The project not only improved access to nutritious meals but also notably enriched the overall learning environment.
Julian Chellappah, Country Director of Save the Children’s Sri Lanka Country Office, reaffirmed their dedication to Sri Lankan children, emphasizing the commitment to nurturing young learners’ potential.
U.S. Ambassador to Sri Lanka, Julie Chung, praised the collaboration, highlighting the total USDA contribution to child nutrition in Sri Lanka reaching US$60 million. She underscored the program’s significance in equipping Sri Lankan children with essential tools for success, emphasizing the robust bond between the United States and Sri Lanka.
Education Minister Dr. Susil Premajayantha emphasized the pivotal role of education in the nation’s progress, acknowledging the joint efforts of the USDA and Save the Children in shaping a promising future for Sri Lankan children.
Micah Olad, Chief of Party for Save the Children’s PALAM/A Project, expressed confidence in the initiative’s ability to drive positive change, building upon past achievements and envisioning a more substantial impact on children’s lives in Sri Lanka.
The ongoing commitment of Save the Children and USDA underscores their dedication to advancing the well-being of Sri Lankan children, with the PALAM/A Project standing as a beacon of hope for a brighter future.
UN Women: “In our society, there is a belief that domestic violence should be kept behind closed doors and not discussed openly”, says Anoja Makawita, a social worker and counsellor at Women in Need (WIN).
“Violence within families has far-reaching consequences, and it is women and girls who suffer the most”, she said. “It is not just an issue within individual households; it has an impact on entire communities.”
Makawita was part of the group that founded WIN in 1987, and the organization has worked ever since to provide survivors of gender-based violence with legal aid, counseling, and even housing support.
One in five Sri Lankan women have experienced physical and/or sexual violence by an intimate partner according to a 2019 survey. Nearly half of the women who experienced sexual violence by a partner did not seek formal help due to shame, embarrassment, fear of being blamed or not being believed, or thinking the violence was normal or not serious enough to seek help.
UN Women’s Empowering Women in Crisis project, funded by the government of Japan, has provided relief and support to 11 women’s shelters throughout Sri Lanka, including those run by WIN.
“Helping these women reintegrate into society is however one of the most challenging aspects of our work”, Makawita said, noting that many women who escape domestic violence are unable to return to their old home or afford to rent a new one. WIN works with such women to connect with other organizations and find housing for up to six months, during which time they can seek employment.
WIN is not the only organization in Sri Lanka devoted to helping survivors of gender-based violence. In the country’s North Central province, the Association for Women with Disabilities, or AKASA, operates as a network of self-help groups dedicated to creating opportunities and empowering women to live with dignity and independence.
The organization’s safe house in the town of Thalawa specializes in helping women and girls with disabilities who have faced abuse.
AKASA Chairperson N.G. Kamalawathie described the case of a 21-year-old woman who suffers from a disability in her spine. She identified her as Lilanthi, a pseudonym, and told how she found peace at AKASA after many years of struggle.
After being abused by her mother’s husband and his friend as a child, Lilanthi went to the police. Authorities arrested her abusers, and then placed Lilanthi in an orphanage. She was forced to leave that facility at 18, but could not find a stable home—until she finally found AKASA.
“I am so happy to see the women in this house improving day-by-day, working towards a sense of normalcy in life, and we always support them with whatever guidance they need”, Kamalawathie said.
Another organization, the Jaffna Social Action Centre (JSAC), supports women and children in Sri Lanka’s Northern province. Run by Nadarajah Sukirtharaj, JSAC has developed a host of programming for survivors of violence.
“When we first started JSAC, our community was largely unaware of the significance of safe houses for survivors of violence”, Sukirtharaj said. “To address this, we initiated several awareness programmes and even established women’s groups in villages to spread the word. We have seen a shift in perception since then.”
JSAC has similarly received support through the Empowering Women in Crisis project.
“I must express my deep appreciation for the invaluable support provided by UN Women”, said Sukirtharaj. Founded in 2003, JSAC now operates across eight districts in Sri Lanka.
Makawita, of WIN, echoed Sukirtharaj’s message.
“Although we provide legal and counseling support, we often need assistance in helping these women find jobs or providing self-employment opportunities”, she said. “I want to express my deep gratitude to UN Women for their invaluable support, especially during times of economic hardship.”
The Agriculture and Plantation Industry Ministry under Minister Mahinda Amaraweera has unveiled ambitious plans to allocate Rs. 400 million towards the planting of 400 hectares of coffee in the upcoming year. President Ranil Wickremesinghe has earmarked this substantial fund to bolster coffee cultivation in 2024, aiming to rekindle the nation’s prominence in the global coffee market.
Minister Amaraweera highlighted the foreign market’s surging demand for coffee, despite its current status not being a primary plantation crop in Sri Lanka. With this in mind, the initiative seeks to reignite and popularize coffee cultivation, offering incentives of one million rupees per hectare. He urged officials to actively support and motivate farmers keen on venturing into coffee cultivation.
The Ministry’s 2024 Budget, outlined in the discussion on fiscal management, has earmarked Rs. 96 billion. Emphasizing efficient utilization of this allocation, Minister Amaraweera stressed the importance of maximizing its impact for the industry’s growth.
Renowned for its diverse coffee varieties including Coffea Arabica (Arabica coffee), Coffea Canephora (Robusta coffee), and Libarica coffee, Sri Lanka boasts a rich heritage in coffee cultivation. The Minister specifically directed the Export Agriculture Department to prioritize the cultivation of Arabica coffee due to its global popularity.
In a bid to enhance productivity, the Ministry introduced high-yielding Arabica coffee varieties like HTD, S09, Katimur, Lakparakum, Lak Saviru, and Lak Komali. Simultaneously, local species of Robusta coffee such as IMY, S274, GCR, CCI, Lanka Chandra, Lanka Bhimsara, and Lanka Isuru have been introduced, aiming to diversify and boost coffee production.