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Cabinet Approval Granted for Sri Lanka-Thailand Free Trade Agreement

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January 26, Colombo (LNW): The Cabinet of Ministers has given its approval for Sri Lanka to sign a Free Trade Agreement (FTA) with Thailand. The decision, made on Wednesday, comes after extensive negotiations between the two nations, initiated following a Cabinet decision on January 16, 2018.

The primary objectives of this FTA are centered around the development of supply capacity, attracting export-oriented foreign direct investment, and expanding international market access for Sri Lankan goods and services. Recognizing these strategies as crucial to Sri Lanka’s economic growth, the government has actively pursued discussions to foster stronger economic ties with Thailand.

Throughout the negotiation process, the National Trade Negotiations Committee engaged with various local stakeholders to ensure comprehensive perspectives were considered. After nine rounds of discussions, a comprehensive 14 Chapter draft Free Trade Agreement was formulated, covering aspects such as trade and investment improvement, compliance with local laws and regulations, and facilitating knowledge sharing.

The proposal has received clearance from both the Attorney General and the Ministry of Foreign Affairs, further endorsing the legal and diplomatic aspects of the agreement. With all necessary approvals in place, the Cabinet approved the proposal presented by the President to sign the proposed Free Trade Agreement between Sri Lanka and Thailand.

President Wickremesinghe’s Vision for National Progress Inspired by Biyagama’s Success

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January 26, Colombo (LNW):In a recent address during the inauguration of the ancient Bodhi Prakaraya and Golden Fence at Sapugaskanda Abeysekararama on the morning of January 25, President Ranil Wickremesinghe reaffirmed his commitment to guiding the country’s progress in the coming years. Drawing inspiration from the success story of Biyagama, the President reflected on his early political career in the Biyagama Constituency, emphasizing the positive outcomes of strategic economic decisions, particularly the establishment of the Biyagama Investment Zone.

President Wickremesinghe highlighted the remarkable progress achieved by Biyagama, once characterized by underdevelopment, as a testament to the efficacy of those decisions. Expressing his vision for national progress, he outlined plans to replicate such success nationwide by leveraging the advantages of an open economy. The President stated his intention to establish new investment zones across the country with the aim of significantly boosting the national economy.

During the event, which included the inauguration of the newly constructed ancient Bodhi Prakaraya and Golden Fence, President Wickremesinghe commended the efforts of the organizers, including Deputy Incumbent Ven. Banagala Vimalatissa Thera and Chief Incumbent Ven. Banagala Upatissa Thera.

President Wickremesinghe reminisced about his early political journey in the Biyagama Constituency, highlighting the region’s underdevelopment at that time. Despite initial challenges and skepticism, the President recalled the success of the Biyagama Free Trade Zone, which has evolved into a thriving hub with numerous factories, shops, and other businesses. He credited the belief in Biyagama’s potential for growth under an open economy and drew parallels with the successful model initiated by late President J.R. Jayewardene in Katunayake.

The President underscored the need to generate employment opportunities and enhance the country’s income, emphasizing the importance of establishing new industries and investment prospects. Inspired by the success of Biyagama, President Wickremesinghe expressed his commitment to replicating the development model in other provinces, including Dalugama, Kiribathgoda, Makola, Mawaramandiya, and Kadawatha, with the goal of amplifying the national economy tenfold.

The Chief Sanghanayaka of Japan, Venerable Banagala Upatissa Thera, highlighted President Wickremesinghe’s deep connection with Sapugaskanda, describing it as his political stronghold and the place where he initiated his political journey.

Unrest at Kandakadu Rehabilitation Centre Attributed to Drug Peddlers

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January 26, Colombo (LNW): In a statement to the Daily News on January 25, Rehabilitation Commissioner Major General Darshana Hettiarachchi highlighted the emergence of conflicts within the Kandakadu Rehabilitation Centre, primarily instigated by drug peddlers. Major General Hettiarachchi emphasized the heightened scrutiny on individuals involved in drug trafficking admitted to the center, revealing that recent disturbances, including the incident on the night of January 24, were linked to this specific group.

The Rehabilitation Commissioner disclosed that the conflicts prompted a swift response, and legal measures would be pursued to relocate the implicated drug traffickers to alternative facilities through the judicial system.

The Kandakadu Rehabilitation Centre primarily serves as a facility for the rehabilitation of drug users, occasionally admitting individuals involved in drug trafficking upon their arrest. Major General Hettiarachchi assured that the identification process for traffickers within the center was underway.

In response to the situation, Major General Hettiarachchi informed the public that steps would be taken based on the recommendations provided by the five-member committee appointed by Justice, Prison Affairs, and Constitutional Reforms Minister Dr. Wijayadasa Rajapakshe. Additionally, the Minister has already directed a change in the management of the center, underscoring the commitment to address and rectify the issues at hand.

Government-Owned Buildings in Colombo to be Leased to Private Sector for Development

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January 26, Colombo (LNW): The Ministry of Urban Development and Housing has announced plans to lease several government-owned buildings in Colombo to the private sector for development purposes. W. S. Satyananda, the Secretary of the Ministry, revealed that this initiative includes prominent structures such as Visum Paya, the Gafoor building, the Tea Museum, and two parcels of land spanning 3 acres in DR Wijewardana Mawatha.

According to Satyananda, agreements with investors have already been finalized for the lease of these properties. Additionally, a government-owned building located in Nuwara Eliya is also included in the list of structures earmarked for leasing.

The objective behind this move is to foster development and effective utilization of these properties, transforming them into viable tourist attractions. The emphasis is on ensuring that the development does not compromise the archaeological and historical values associated with these buildings and lands.

By engaging the private sector in the rejuvenation of these properties, the government aims to enhance tourism and contribute to the overall economic development of the region. This strategic approach aligns with efforts to leverage both public and private resources for the collective benefit of the community and the nation as a whole.

Chamari Athapaththu Clinches ICC Women’s ODI Cricketer of the Year 2023 Award

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January 26, Colombo (LNW): Sri Lanka’s cricket sensation, Chamari Athapaththu, has been honored with the prestigious ICC Women’s ODI Cricketer of the Year 2023 award, marking an exceptional year in her cricketing journey.

Throughout the course of 2023, the 33-year-old cricket star showcased outstanding performance, amassing a total of 415 runs in eight matches, and contributing with the ball by taking one wicket. As the captain of the Sri Lankan team, Chamari Athapaththu played a pivotal role in leading her side to a historic series win over New Zealand, securing a 2-1 victory.

Chamari’s remarkable innings included unbeaten knocks of 108 and 140 in the two wins against New Zealand, proving instrumental in clinching the series. Notably, in the third match, she achieved a century off just 29 balls, setting a new record as the fastest century by a Sri Lankan and the fourth fastest in women’s ODI history.

With a career spanning 98 ODIs, Chamari Athapaththu has accumulated an impressive record, amassing 3,255 runs at an average of 34.26. Her highest score of 178 not out, coupled with eight centuries and 15 half-centuries, highlights her consistent and impactful contributions to Sri Lankan cricket. With a strike rate of 73.09, she has emerged as a formidable force in women’s ODI cricket.

Chamari’s recognition as the ICC Women’s ODI Cricketer of the Year 2023 is a testament to her skill, dedication, and leadership on the cricketing field, bringing pride and acclaim to Sri Lanka’s cricketing community.

Former Finance Minister Ravi K stresses the need to mitigate the impact of VAT hike.

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By: Staff Writer

January 26, Colombo (LNW): The government will be amending tax legislation soon to eliminate or restrict ministerial authority to introduce tax changes without prior parliamentary approval and ensure that such changes do not generate revenue losses.

It is continuing the implementation of progressive tax reform package introduced in May 2022 in the New Year 2024 as well with some tax hikes including VAT maintaining exemptions on basic food and some essential items, finance ministry sources confirmed.

Commenting on this issue former finance minister Ravi Karunanayake said that he has some reservation son VAT hike to 18 percent for 15 percent exerting unbearable impact on ordinary citizens.

He added that VAT can be reduced up to 9 percent from 18 percent by increasing several other direct taxes while recovering the accumulated tax arrears from tax doggers.

Sri Lanka plans to bring 500,000 out of some 1 million “tax evaders” who have the capacity to pay income tax into the tax net in a bid to increase direct taxation to 40 percent.

“This adjustment aligns with the conditions of developed countries and promotes social justice. In a population of one million capable taxpayers, only 500,000 individuals are currently fulfilling this obligation. Identifying tax evaders and bringing them into the tax net is crucial to reduce indirect taxes,” he said.

The impact of the Value Added Tax (VAT) increase to 18 percent from 15 percent is to be mitigated for the benefit of ordinary citizens with the elimination of additional taxes on goods and services under VAT and adopting necessary tax adjustments, he disclosed.

Furthermore, it was revealed that nearly 90 essential items, including educational services, electricity, health, medicine, passenger transportation, as well as all vegetables and fruits, are exempt from VAT.

Additionally, VAT does not apply to 65 types of items subject to the Special Commodity Levy.

The Finance ministry is committed to revamping the VAT system this year, by removing almost all product specific VAT exemptions, he said adding that it will be significantly speeding up valid VAT refunds and abolishing the Simplified VAT (SVAT) system.

Measures will be taken to introduce a property tax, as well as a gift and inheritance tax before 2025, ministry revealed.

These tax policy reforms focus on base-broadening and progressive measures to mobilize revenue according tax collection target of Rs 3.82 trillion for 2024 to three revenue collection departments while promoting economic efficiency and equity.

IMF loan programme dilemma looms amidst Sri Lanka elections this year.

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By: Staff Writer

January 26, Colombo (LNW):The International Monetary Fund is set to face tough choices on how to deal with Sri Lanka economic reform programme and the continuation of the US$ 3 billion extended fund facility spanning four years after the 2024 election and how to assess the country’s debt situation, several economic and political analysts said.

The country, which is operating under President Ranil WIckremasunghe led government, since July 2022 secured a $3 billion loan programme with IMF in March 20 2023 that helped pull the cash-strapped nation back from the brink of economic crisis.

“The IMF will have to decide whether to pull the plug on Sri Lanka or not, and by that it will have to decide about its assessment of debt sustainability, a former central bank governor said.

Sri Lanka’s continuation in the economic reform process supported by the International Monetary Fund (IMF) is necessary for stabilisation to evolve into broad-based and steady growth that will ensure a full and lasting economic recovery benefitting the people, senior IMF mission Chief Peter Breuer commented at a media briefing recently.

Under this scenario, sustaining the reform momentum and ensuring timely implementation of all program commitments are critical to rebuilding confidence and putting the recovery on a firm footing that will benefit all people.

The economic reform program implemented by the Sri Lankan authorities is yielding the first signs of recovery with positive real GDP growth in the third quarter of 2023, low inflation, increased revenue collection, and a build-up of external reserves

“The authorities have made commendable progress with putting debt on a path towards sustainability. The execution of the domestic debt restructuring was an important milestone” he pointed out.

‘So our understanding is that negotiations are ongoing, proposals are being exchanged, and it is important for that process to continue and be completed as quickly as possible. It’s our strong expectation that there would be an agreement in principle by the time of the second review” he said.

A swift completion of final agreements with official creditors and reaching a resolution with external private creditors remain critical.

Progress in meeting key commitments under the reform program have been assessed in the context of the second review of the Extended Fund Facility (EFF) arrangement alongside the forthcoming 2024 Article IV consultation assessing Sri Lanka’s economic health during the IMF team’s eight day visit in the island.

However, challenges remain as these improvements need to translate into improved living conditions for Sri Lanka’s people.

Swift progress towards the introduction of a progressive property tax is key to ensuring fair burden sharing while sustaining the revenue-based consolidation, senior IMF mission Chief Peter Breuer emphasized.

Sri Lanka Original Narrative Summary: 26/01

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  1. International Cricket Council names Sri Lanka’s Chamari Athapaththu as the ICC ODI International Women’s Cricketer of the Year 2023.
  2. Group of SLPP MPs calling themselves the “New Alliance” to launch a campaign to support UNP leader Ranil Wickremesinghe’s candidature at the forthcoming Presidential election: their inaugural rally to be held on 27th January.
  3. Jagath Priyankara who is next in the list of Puttalam district winning candidates at the 2020 Parliamentary Election is set to fill the MP seat left vacant after State Minister Sanath Nishantha’s death: Priyankara is a member of the National Freedom Front led by MP Wimal Weerawansa.
  4. Agriculture Minister Mahinda Amaraweera says a group connected to a political party is posting insulting posts on State Minister Sanath Nishantha’s tragic death, using “fake” accounts: observers say thousands of such fake accounts are being continuously used for quite some time by this political party to boost their image as well as insult others.
  5. Deiyannadara Magistrate issues Detention Orders until 27th January for the suspect arrested from Akuressa over the killing of five persons at Beliatta.
  6. SL Legislators seek State Finance Minister Shehan Semasinghe’s intervention as SL workers in the Maldives have to rely on “Undiyal” to send their remittances home: this is in response to Maldivian banks limiting dollar sales to customers amidst a forex shortage in that country.
  7. Health workers excluding doctors in state-run hospitals await a resolution to their demand for an additional allowance similar to that of doctors: warn that a failure to resolve the issue could result in trade union action disrupting services: set 1st February as the fresh deadline for the Govt to meet their demands.
  8. Govt to introduce amendments to the Penal Code to institute rape of male children as a criminal offence: amendments to also include strengthening laws on constitutional rape of females.
  9. President Ranil Wickremesinghe outlines his vision to make SL a major global player in the confectionery industry; stresses the potential for “Made in SL” chocolates.
  10. US Ambassador to SL Julie Chung says the new “On-line Safety Act” will jeopardize democratic values and undermine the economic growth that SL needs: says the US urges SL to prioritize transparency and ensure that legislation does not stifle the voices of its people.

Penal Code to be Amended to Declare Male Child Rape a Criminal Offence

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January 26, Colombo (LNW): In a groundbreaking move, the Cabinet has approved amendments to the Penal Code, addressing a critical gap in the legal framework by criminalizing the rape of male children. Until this approval, male rape was not explicitly recognized as a criminal offense, leaving victims without proper avenues for justice.

The decision to introduce these amendments stems from the acknowledgment of the need for legal provisions to address the sexual assault of male children, aligning with the ongoing efforts to strengthen the country’s legal framework related to sexual offenses.

The draft bill, having received clearance from the Attorney General, is set to be published and submitted to Parliament for approval. The proposed amendments not only aim to rectify existing shortcomings in the laws pertaining to the constitutional rape of females but also signal a commitment to inclusivity and protection for all victims of sexual violence, regardless of gender.

This decision reflects a significant step towards ensuring justice, protection, and legal recourse for male child victims of rape, fostering a more comprehensive and equitable legal system in Sri Lanka.

Advancements in Beliatta Murder Case Investigation

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January 26, Colombo (LNW): Deindara Magistrate’s Court has granted permission to question the suspect under detention orders. The 54-year-old suspect is under investigation for his alleged involvement in the shooting incident that occurred near the Beliatta exit of the Southern Expressway on January 22nd.

Following the interrogation of the suspect, the Hakmana police have successfully seized crucial evidence related to the crime. This includes a motorcycle believed to have been used during the shooting and a van utilized by the suspects to escape from the crime scene. Additionally, the jeep used by the suspects to arrive at the location has been taken into police custody in Galle.

The shooting incident, executed with two T56 firearms, resulted in the tragic deaths of five individuals, including Saman Perera, the leader of the Ape Janabala Party. The investigation is ongoing, and authorities are actively pursuing leads to bring those responsible to justice.