Colombo (LNW): The Sri Lankan Rupee (LKR) indicates slight appreciation against the US Dollar today (26) in comparison to yesterday, as per the official exchange rates list issued by the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US Dollar has dropped to Rs. 321.39 from Rs. 321.70 and the selling price to Rs. 331.93 from Rs. 332.56.
The Sri Lankan Rupee has also appreciated against several other foreign currencies including Gulf currencies.
Colombo (LNW): A protest campaign was held this (26) afternoon in front of the Port Entrance of Colombo Port, based on several demands, including an action against the increased prices of goods and the government’s interference with the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF).
The protest was held under the slogan “Price of goods high, can’t afford to live, join the fight to increase wages!” and was organised by the Port Trade Union Collective.
Photo Courtesy: Ajith Senevirathne
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Colombo (LNW): US Ambassador to Sri Lanka, Julie Chung, emphasised the importance of equity and transparency in Sri Lanka’s debt restructuring during a meeting with the Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe.
Their discussions focused on Sri Lanka’s engagement with the International Monetary Fund (IMF).
Ambassador Chung lauded the Central Bank for reaching a staff-level agreement with the IMF and reiterated the US’s commitment to fostering a fair and transparent economic environment in Sri Lanka that promotes stability and growth.
“Today, at my meeting with Central Bank Governor I extended my congratulations on the IMF’s staff-level agreement, marking progress in Sri Lanka’s effort to secure the second IMF installment. I reinforced the need for fairness in Sri Lanka’s debt restructuring: equal & equitable treatment for all creditors is essential. Transparency from every party involved is crucial. The United States remains committed to an economic landscape that values fairness, transparency, integrity, and inclusivity, ensuring stability & growth in Sri Lanka,” Chung wrote on her X.
Colombo (LNW): Prime Minister Dinesh Gunawardena has directed officials to ensure that all pending appointments for multi-purpose development assistants are completed by 15th November.
A meeting discussing the efficiency of the Department of Multi-purpose Development Task Force and speeding up the appointment process took place at the Prime Minister’s Office, chaired by the Prime Minister on Wednesday.
The session largely focused on the actions taken by the official committee, which the Cabinet had established to assess government recruitment procedures.
Although directives exist to hire multi-purpose development assistants for primary service roles in the public sector, some ministries have yet to finalise these appointments.
This has resulted in 4,780 multi-purpose development assistant positions remaining unfilled. Highlighting this delay, the Prime Minister emphasised the need to finalise these appointments and allocate them to their respective institutions by the set deadline.
The meeting was attended by State Ministers Janaka Wakkumbura and Ashoka Priyantha, Prime Minister’s Secretary Anura Dissanayake, various ministry secretaries, institutional heads, and other government officials.
Colombo (LNW): The Chinese research vessel ‘Shi Yan 6’ has made its way to the Port of Colombo in Sri Lanka for resupplying purposes, an official from the Ministry of Foreign Affairs confirmed.
The vessel has been permitted to stay at the Colombo Harbor for replenishment until 28th October.
While there were initial expectations for the vessel to engage in research collaborations with Sri Lankan agencies, the spokesperson clarified that only resupplying would take place, with no research activities to be conducted during this time.
The Shi Yan 6, as described by the Chinese state broadcaster CGTN, is a “scientific research vessel” that houses a crew of 60, and it primarily conducts tests in oceanography, marine geology, and marine ecology.
Indian media outlets have suggested that the vessel’s presence in Colombo might intensify India’s apprehensions about China’s expanding influence in the Indian Ocean.
It should also be noted that last year, India expressed concerns when another Chinese research ship, Yuan Wang 5, made a port call in Hambantota, Sri Lanka.
New Delhi classified this vessel as one focusing on spacecraft tracking and potentially involved in espionage activities.
Colombo (LNW): A new Gazette notification has been released detailing updates to the fees associated with National Identity Card (NIC) services.
Minister of Public Security, Tiran Alles, has announced these changes under the Registration of Persons Act, No. 32 of 1968.
The updated charges are as follows:
– Online submissions made through the Registration of Persons Department’s website – Rs. 25.
– Submissions made by way of a physical document or electronic means acceptable to the Commissioner General – Rs. 500.
By: Staff Writer
Colombo (LNW): The Customs, Inland Revenue and Excise Trade Union Collective voiced concerns, asserting that ad-hoc policy shifts and questionable methodologies used in policy revisions, pose a threat to the crucial role played by these departments in Government revenue collection.
Issuing a statement, unions argue that these efforts undermine the Government’s ability to fund essential services such as free education and healthcare.
Representatives from the union, which oversees the Customs, Inland Revenue, and Excise Departments, contend that despite being State-run entities operating following Government policy, certain factions are disseminating baseless claims to wipe out these institutions.
They further highlighted that proposals put forth by the three revenue-collecting organisations to enhance revenue and efficiency during the economic crisis, have been disregarded by higher authorities within the Government, signifying a lack of concern for public interests.
The Inland Revenue Department’s outstanding achievement in collecting a record-breaking Rs. 1,229 billion as of 19 October compared to Rs. 653 billion in the same period last year, was cited as evidence of the departments’ dedication to their crucial role.
Despite the challenging economic landscape, the Government has yet to address internal issues within the revenue-collecting organisations, opting instead to convey concerns to the international community.
They alleged that the Commissioner General position of the Inland Revenue Department has been vacant since 27 August 2023, and has hampered the full implementation of policies required to reach Government targets by the end of the year.
Despite import restrictions on over 1,000 items as of mid-October 2023, union representatives said the Customs Department outperformed the Rs. 695 billion collected in the first nine months of 2022, by collecting Rs. 715 billion and was confident the department would make significant collections by year’s end.
“The original income targets for the Excise Department undergo numerous alterations during the year, due to a lack of a structured methodology.
Additionally, there have been significant revenue losses as a result of increased alcohol prices. The problem has been made worse by businesses’ misuse of stickers introduced to prevent smuggling foreign liquor to the country and to stop selling adulterated liquor to the customers and further increase its revenue,” they disclosed.
Despite these difficulties, they said the Excise Department was still able to collect Rs. 137.1 billion (excluding court fines) as of 15 October 2023, up from Rs. 134.6 billion during the same period in 2022.
They observe these circumstances as a conspiracy to erode the significance of these State institutions and demoralise the three departments.
However, the Union representatives reiterate their commitment to contributing to economic prosperity and emphasise the need to broaden their responsibilities to overcome difficulties, to ensure access to services for the public like free education and healthcare.
By: Staff Writer
Colombo (LNW): At the time of Chinese research ship docking at the Colombo Port on Wednesday the US Department of Defence to the US Congress claims that China is considering using Sri Lanka as part of its global military supply chain.
The report by the US Department of Defence to the US Congress is titled “Military and Security Developments Involving the People’s Republic of China.”
The report notes that the People’s Republic of China probably also has considered 18 countries including Sri Lanka as locations for People’s Liberation Army’s military logistics facilities.
It added that the PRC is seeking to expand its overseas logistics and basing infrastructure to allow the PLA to project and sustain military power at greater instances.
If realized, a global PLA military logistics network could disrupt U.S. military operations as the PRC’s global military objectives evolve.
The report says that beyond the PLA support base in Djibouti, the PRC is very likely already considering and planning for additional military logistics facilities to support naval, air, and ground forces projection.
The report also revealed that in June 2022, a PRC official confirmed that the PLA would have access to parts of Cambodia’s Ream Naval Base.
Chinese research ship docked at a Sri Lankan port on Wednesday, likely adding to neighboring India’s concerns about China’s growing influence in the Indian Ocean.
The arrival of the Shi Yan 6 follows last year’s visit by a Chinese naval vessel.
The latest ship was given permission to dock for replenishment at the port of Colombo, the Indian Ocean island’s main port, from Wednesday until Oct. 28, said foreign ministry spokesman Kapila Fonseka.
The vessel had been expected to conduct research with Sri Lankan state institutions, but Fonseka said permission was granted only for replenishment and no research work would be carried out.
According to Chinese television network CGTN, Shi Yan 6 is a geophysical scientific research vessel on an expeditionary voyage in the eastern area of the Indian Ocean.
Organized by the South China Sea Institute of Oceanology under the Chinese Academy of Sciences, the vessel is scheduled to operate at sea for 80 days, covering a range of more than 12,000 nautical miles (roughly 22,200 kilometres), CGTN reported.
China has been trying to expand its influence in Sri Lanka, which is located on one of the world’s busiest shipping routes in what India considers part of its strategic backyard.
Beijing was once widely seen as having an upper hand with its free-flowing loans and infrastructure investments. But Sri Lanka’s economic collapse last year provided an opportunity for India as New Delhi stepped in with massive financial and material assistance.
By: Staff Writer
Colombo (LNW): Union Bank now comes under CG Capital Partners Global Pte. Ltd indirectly as it as brought Culture Financial Holdings Ltd. (a substantial shareholder of shares in Union Bank a majority stake of the bank.
This was announced in December 2022. On 24 October 2023, the Board of Directors of Union Bank received formal notification that the transaction has been completed and the Colombo Stock Exchange (CSE) has been notified of the same.
Through its ownership in Culture Financial Holdings, CG Capital Partners Pte Ltd., is now the main shareholder of Union Bank.
CG Corp Global (CG) takes pride as one of the leading conglomerates in Asia with over 160 companies and 123 brands in the global market with the strength of more than 15, 000 employees.
It is a major player in many industries such as banking and finance, hospitality, cement, hydropower, telecommunication, and education.
The company is a major player in the financial services sector in Nepal and Nabil Bank where it is the largest shareholder and is listed as the largest private bank in the Nepalese Stock Exchange.
This is not the first time CG has set its sights on Sri Lanka. It holds major shares in several high-end properties, luxury hotels and resorts across the country and is further expanding its investments towards the financial services sector as well.
This comes as a reaffirmation of its commitment to Sri Lanka, by being a source of support and strength during these challenging and transitioning times, whilst reiterating the foreign investor confidence in Sri Lanka.
This is a major milestone for Union Bank to have such an international powerhouse as the main shareholder.
Dr Binod K. Choudhary, Chairman of CG Corp Global said, “This is a major investment towards the financial service sector in Sri Lanka and to Union Bank.
The Bank has had a strong track record and has further potential to grow and do greater things to achieve more milestones in the banking sector.
“We are taking a strategic growth approach to make Union Bank to be amongst the top private commercial banks in Sri Lanka” he added.
This growth expansion could see further consolidations and acquisitions. The acquisition and transition of Nabil Bank to become Nepal’s largest bank is a fine example.
Based on CG’s core competencies and expertise, we want to also look at the possibility of Union Bank’s expansion to emerging and frontier markets such as Africa, Nepal, and Bhutan.
It is great to be associated with this well-reputed and well capitalised bank in Sri Lanka. I believe, together much can be done as we move forward, he claimed.
By: Staff Writer
Colombo (LNW): Minister of Power and Energy, Kanchana Wijesekera, announced that a comprehensive proposal pertaining to the restructuring of the Ceylon Electricity Board (CEB) is scheduled for submission to the Cabinet next week.
SrI Lanka government will be introducing a mechanism immediately for a systematic approach to revise the electricity bill once every six months. Minister of Power and Energy, Kanchana Wijesekera disclosed.
A cost effective electricity tariff formula is to be devised using mathematical models and data processing in consultation with energy experts in the country.
The formula will be a complex one as it has to determine the tariff for several segments of electricity users without any discrimination and reasonable manner taking into account all cost factors in energy generation.
These factors include, fuel prices, cost for a unit of power generation, energy mix, taxes, rupee fluctaions against the dollar, overhead costs , etc.
Minister Wijeskera said that all these factors will be made known to the public along with the fuel formula mechanism after its finalization soon.
The Minister providing additional insights remarked that the Public Utilities Commission had recently approved a revision of electricity tariffs for the Electricity Board.
Consequently, preparations we made to implement an approximate 18% rate adjustment, effective from the 21st of October, with subsequent rate evaluations for the coming months, he added.
This price revision adheres to the government’s policy framework established in conjunction with the International Monetary Fund (IMF).
Pursuant to this framework, no state enterprise is permitted to draw funds from the Treasury to cover its financial losses.
Addressing a prevalent misconception within society, the Minister clarified that the Electricity Board is not confined to revising tariffs only twice a year.
Provisions are in place for tariff adjustments in cases of emergency and the necessary cabinet approval has been secured for this purpose.
“As of today, we are utilizing only 65.81% of the reservoir capacity, a stark contrast to the 84.41% capacity utilization observed by October 22, 2022. This represents a considerable 20% decrease.
Comparatively, the hydroelectricity production from our reservoirs in 2022 reached 5,364 gigawatt hours, a significant decline from 5,639 gigawatt hours in 2021.
By October 22, 2023, the figure stands at 2,893 gigawatt hours, only half of the corresponding output in the preceding years. With a mere 70 days remaining in the year, there is uncertainty regarding our ability to meet these targets.
Consequently, the exploration of alternative measures is imperative to ensure the continued supply of electricity, he said.
