Colombo (LNW): Keheliya Rambukwella, who previously served as the Minister of Health, has been sworn in as the Minister of Environment today (23).
Dr. Ramesh Pathirana has taken over the role of Minister of Health, adding to his existing responsibilities as the Industry Minister.
Mahinda Amaraweera, currently the Minister of Agriculture, has now also been sworn in as the Minister of Plantation Industries.
Furthermore, the non-cabinet role of Minister of Plantation Industries has been allocated to Ranjith Siyambalapitiya, who will maintain his present duties as the State Minister of Finance.
Colombo (LNW): The Sri Lankan Rupee (LKR) indicates depreciation against the US Dollar today (23) in comparison to last week’s Friday, as revealed by leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has increased to Rs. 317.88 from Rs. 316.67, and the selling price to Rs. 331.15 from Rs. 329.88.
At Commercial Bank, the buying price of the US Dollar has increased to Rs. 319.66 from Rs. 318.18, and the selling price to Rs. 330 from Rs. 328.50.
At Sampath Bank, the buying price of the US Dollar has increased to Rs. 321 from Rs. 320, and the selling price to Rs. 331 from Rs. 330.
Colombo (LNW): Sri Lanka and China will finally ink the long-awaited Free Trade Agreement (FTA) that has been in the talks for nearly 10 years, paving the way for improved trade between the two nations.
The two Countries have agreed to speed up the negotiation process and strive for an early conclusion of a free trade agreement, thereby boosting the confidence in and stabilizing the expectations for their economic and trade cooperation, the Chinese Embassy in Colombo said.
In a joint statement issued by the government of Sri Lanka and China on Friday (20), following President Ranil Wickremesinghe’s 4-day official visit to Beijing, the two nations expressed satisfaction over the progress made in bilateral cooperation in economy and trade,.
The two nations agreed to conclude a comprehensive free trade agreement as quickly as possible to strengthen two-way trade and economic cooperation.
“The two sides will carry out practical cooperation in finance on the basis of market principles, autonomy and rule of law to further enhance financial services and economic and trade development,” the statement highlighted.
Negotiations for a Free Trade Agreement (FTA) between the two countries commenced in 2013 during a visit by the then President Mahinda Rajapaksa to China, leading to an initial agreement to pursue a preferential trade arrangement.
Although a feasibility study was conducted in 2014, the finalisation of the agreement did not materialise.
In the freshly issued joint statement, China affirmed it will continue to support competitive Sri Lankan industries to establish ties with relevant Chinese associations of importers and exporters.
China said it will provide facilitation and support for Sri Lankan exporters to participate in Chinese exhibitions.
These included the China International Import Expo, the China Import and Export Fair, the China-South Asia Exposition, the China International Supply Chain Expo, and encourage Chinese and Sri Lankan enterprises to deepen cooperation on the basis of mutual benefit and bolster Sri Lankan exports to China.
Further, both the nations agreed to sign the Protocol of Phytosanitary Requirements for Export of Ceylon Cinnamon from Sri Lanka to China between the General Administration of Customs of China and the Ministry of Plantation Industries of Sri Lanka.
Wild Fishing Aquatic Products are to be exported from Sri Lanka to China under the Protocol on Inspection, Quarantine and Veterinary Sanitary Requirements .
Sri Lanka currently has two FTA deals with India and Pakistan. The country is also expected to enter into a FTA deal with Thailand during the first quarter of next year.
Sri Lanka has also applied for the membership of Regional Comprehensive Economic Partnership (RCEP), which is a free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations.
Colombo (LNW): The Education Secretary for the Southern Province has announced the closure of several schools due to the heavy rainfall experienced in the region since yesterday (22).
Consequently, only those schools affected in areas such as Akuressa, Deniyaya, Mulatiyana, and Walasmulla have been shut.
The Southern Province’s Director of Education mentioned that Zonal Education Directors have been given the authority to make decisions on school closures due to adverse weather conditions.
Ms. Dhammika Priyadarshani, the Zonal Education Director for the Deniyaya Region, confirmed that 77 schools in the Deniyaya Education Zone were closed today (23) with the approval of the Southern Provincial Education Secretary, given the emergent situation.
The Matara-Kotapala road has been obstructed at Kirilipana due to a landslide, disrupting through traffic. The Morawaka-Neluwa Road is also blocked from Morawaka town, and the Pitabaddara area is submerged because of the Kirama Oya overflowing.
Furthermore, the Irrigation Department has released an ‘Amber’ flood alert for some low-lying regions near the Nilwala River valley, affecting areas including Kotapola, Pitabeddara, Akuressa, Pasgoda, Athuraliya, Malimbada, Thihagoda, Matara, and Devinuwara.
Colombo (LNW): The International Monetary Fund (IMF) expects a property and inheritance tax that is currently in the planning will be a key source of additional revenue for the government in the year 2025.
It welcomes the Sri Lankan authorities’ commitment to increase revenues and signal better governance by adopting needed tax measures, strengthening tax administration, and actively eliminating tax evasion.
Maintaining cost recovery in fuel and electricity pricing helps mitigate fiscal risks arising from state-owned enterprises.
Further strengthening the social safety net remains critical to protect the poor and the vulnerable. While inflation has decelerated faster than expected, continued monitoring is warranted to help anchor inflationary expectations and support macroeconomic stability.
Property tax is something that is in the programme, but not quite yet, because it’s something that takes a lot of time to put into place, and it is, in fact, important for the Sri Lankan authorities to make preparations for that,” IMF Senior Mission Chief for Sri Lanka Peter Breuer told a virtual press briefing recently.
He also said that the IMF is extending technical assistance in this regard.“So, it’s important to get started with it. But it will take some time for that to become effective. And it’s envisaged that, in 2025, property tax would be a key source of additional revenue in that year,” he added.
According to the programme documents, Sri Lanka has assured the IMF to revamp the property tax system and introduce a wealth transfer tax by 2025.
“In particular, we will introduce a nationwide real property tax and adjust the system of transfers between the central and provincial governments.
We will also introduce a gift and inheritance tax with a tax-free allowance and minimal exemptions. Preparatory work for these tax reforms will commence by mid-2023, supported by IMF technical assistance,” IMF Programme documents made public in March said.
No comprehensive study has been conducted on the Sri Lankan property market. The majority of property transactions in Sri Lanka involve inheritance and gifts.
IMF approved Program performance at end-June was satisfactory, with all quantitative performance criteria for end-June met, except the one on expenditure arrears.
All indicative targets were also met except the one on tax revenues. Most structural benchmarks were either met or implemented with delay by end-September 2023.
Notably, the authorities published on time the Governance Diagnostic Report. Sri Lanka is the first country in Asia that has undergone the IMF Governance Diagnostic exercise.
Progress is still ongoing on the revenue measures to support the fiscal consolidation during 2024 in line with program parameters.
Colombo (LNW): Against the turbulent economic backdrop, the fate of the Sri Lanka apparel industry accounting for over 45% of the country’s export earnings has further plunged down last month.
Apparel exports in September were down sharply by 26% to US $ 332 million whilst performance in the first nine months was down by 20.5% to $ 3.4 billion.
“September was a bad month. The industry was hoping to see some signs of slight recovery but that may now be October at best,” apparel industry sources said.
Apparel stakeholders were concerned that the lack of steady supply of fuel and electricity would affect the smooth operations of the industry.
On the other, it was noted that brands and retailers have started to move sourcing orders from Sri Lanka to neighboring countries to mitigate the risks.
Some of the expected consequences were loss of business and revenue and re-location of production to other countries.
In September exports to the USA decreased by 34.37% year on year to 122, exports to the EU (excluding exports to UK) also decreased by 24.54% to $ 106.79 million.
At the same time exports to the UK and to other countries also decreased by 4.61% to $ 54 million and 25.19% to $ 50 million respectively in September 2023.
In the first nine months overall exports to the USA decreased by 25.19% to $ 1,36 billion, exports to the EU (excluding exports to UK) decreased by 18.15% to $ 1 billion over the same period in the year 2022.
At the same time overall exports to the UK and to other countries also have decreased by 16% to $ 480 million and 15.94% to $ 538 million respectively over the same period in the year 2022.
Industry sources renewed their call for a more favourable environment if exports pick up in the remainder of 2023 whilst external market conditions remain challenging.
For Sri Lanka, economists predict that it will take at least ten years to reverse the effects of the crisis.
The apparel industry is in urgent need of an inclusive, just, and equitable plan that will ensure not just the resilience and the growth of the industry, but also the material and emotional wellbeing of its workers.
The Government prioritises the needs and wants of businesses, with greater concessions granted to business owners to deal with the crisis.
Existing strategies are strengthened, new strategies are drawn, and new plans are made to uplift the apparel industry.
Colombo (LNW): Power and Energy Minister Kanchana Wijesekera has announced that the Government is exploring the possibility of implementing automated fuel price revisions daily by fuel distributors starting in 2024.
Speaking at the annual general meeting of the Petroleum Shed Owners Association 2023 on Saturday, he emphasised that this initiative reflects a long-term policy envisioned by the Government.
In a significant move towards ensuring a more transparent and responsive energy market, he said: “This is a crucial step in creating a more dynamic and efficient fuel pricing system that benefits both consumers and the industry.”
The Minister highlighted the pressing need for such a policy change in light of the ongoing conflict in Gaza, which has led to heightened market volatility.
He explained that it is anticipated that fuel prices may surge by up to 25% due to geopolitical tensions, underscoring the importance of proactive measures to stabilise prices.
Wijesekera assured the public that the Government has taken pre-emptive steps to safeguard fuel stocks amidst these uncertain times.
“We have made sure that we are well-prepared to handle any potential disruptions in the fuel supply chain. Our strategic reserves are in place to ensure stability even in the face of external challenges,” he added.
Industry experts said the proposed daily automated fuel price revisions would enable distributors to respond swiftly to market fluctuations, providing a more accurate reflection of global oil prices.
This move is anticipated to bring about increased efficiency and competitiveness within the industry, ultimately benefiting consumers.
They noted that the move aligns with international practices in many developed economies, where daily fuel price revisions are already in place.
The dynamic fuel pricing a common practice internationally will replace monthly fuel revision system in accordance with the pricing formula now in force using fortnightly average, international oil prices and rupee- US dollar fluctuations.
The daily price change will remove the high hike in rates that need to be effected at the end of the month and consumer will be more aligned to market dynamics, the power and energy ministry said.
CPC fuel filling stations will be automated to automatically update centrally, besides technology also provides to schedule the oil price change at midnight, he said adding that the new system will be implemented in selected petrol sheds as pilot project.
At the non-automated petrol pumps, dealers would get the updated price by way of four customised SMS’, e-mails, mobile app and web portal. “
These means of communication are also available to dealers of automated petrol pumps,” he disclosed.
Colombo (LNW): A new legislation will be introduced to the Cabinet today (23) to ensure the proper standards of conduct of the members of Parliament, President Ranil Wickremesinghe disclosed.
Speaking to media, the Sri Lankan President further noted that former Speaker Karu Jayasuriya has drafted the legislation to ensure high standards of the MPs, resembling the customs of the United Kingdom’s Parliament.
A commission, accordingly, will be appointed under the chairmanship of former Chief Justice Depp, for a period of six months, the President went on, adding that the problems evident in all political parties can be addressed there.
Colombo (LNW): Sri Lanka’s top private bank HNB PLC has reaffirmed its long-standing collaboration with Singer, the country’s leading consumer durable retailer and the sole local representative for John Deere.
The collaboration aims to bolster the agricultural sector with cutting-edge vehicles, machinery, and equipment.
This renewed alliance will introduce exciting offers and advantages linked to John Deere’s extensive range of tractors, machinery, and equipment.
Sanjay Wijemanne, DGM of the Retail Banking Group, remarked, “In spite of numerous obstacles, the Sri Lankan agricultural sector has grown by 3.6% compared to last year. Our collaboration with Singer seeks to support this sector’s enduring determination and prowess. I trust our clientele will seize this chance to elevate their enterprises.”
Under this collaboration, the bank will roll out a series of incentives, including reduced interest rates and adaptable leasing plans tailored to individual budgets. Clients can also benefit from discounts and other perks from HNB’s Prestige Prime merchant partner network.
Moreover, customers will receive insurance premium reductions and complimentary life insurance coverage, valued at Rs. 4.5 million, from HNB General Insurance. Should natural death occur, HNB Assurance will provide an insurance payout of Rs. 600,000.
Singer Sri Lanka PLC CEO, Mahesh Wijewardene, expressed, “We’re thrilled to renew our association with HNB. With their enduring commitment to SMEs, we can equip the agricultural sector with the latest machinery for growth.”
Singer will grant free registration and a warranty of 1000 hours or one year to customers leveraging this promotion. They can also receive complimentary filter sets, inclusive of hydraulic filters, up to 1000 hours or until the third service.
Further benefits include three gratis services, an exclusive 10% reduction on John Deere spare parts, convenient home deliveries, round-the-clock service support, and a host of other financial and maintenance advantages.
Additionally, HNB recently earned the title of Best Retail Bank in Sri Lanka for the 13th time at the esteemed International Excellence in Retail Financial Services Awards 2023, organised by the Asian Banker Magazine.
State Finance Minister Shehan Semasinghe says SL plans to utilise the IMF 2nd tranche of USD 330mn to settle arrears owed to multi-lateral creditors including the World Bank and the Asian Development Bank.
US Dept of Defence’s annual report 2023 to Congress on “Military & Security Developments involving China” states China is trying to expand its global military footprint: says China has “probably” considered other countries as locations for its military logistics facilities, including Burma, Thailand, Indonesia, Pakistan, Sri Lanka, UAE, Kenya, Equatorial Guinea, Seychelles, Tanzania, Angola, Nigeria, Namibia, Mozambique, Bangladesh, PNG, Solomon Islands & Tajikistan.
SL-born Melbourne financial planner Terence Rio Rienzo Nugara pleads guilty in a County Court in Australia to 37 charges of obtaining a financial advantage by deception and 2 charges of theft: as a result of his deception, he has been accused of stealing AU$10,152, 061 from 38 Australian victims.
President Ranil Wickremasinghe says new legislation will be introduced soon to ensure the proper standards of conduct of MPs: also says former Speaker Karu Jayasuriya is drafting legislation to ensure high standards of MPs.
President Ranil Wickremasinghe says SL will give its fullest support to the UN Secretary General’s program to stop conflicts and establish peace in Gaza.
Navy says a multi-day fishing vessel and 5 suspects were arrested in Dondra Point with over 200 kgs of heroin with a street value of over Rs.4,000mn: also says the seizure was made in a deep-sea operation conducted by the Intelligence Division of the Navy and the Police Narcotics Bureau.
Education State Minister Aravinda Kumar says appointment letters for around 5,000 school principals across all 3 service grades will be distributed next month: also hints at a potential salary increase for teachers in the forthcoming budget.
Election Commission Chief L M A R Ratnayake says the Commission is set to raise the security deposit required from all election candidates: asserts that this move is aimed at dissuading an excessive number of candidates from applying: also says this increase could help decrease overall election costs.
SL Gem & Jewellery Assn says SL has generated USD 315mn in revenue from the export of gems and jewellery so far in 2023, recording a growth of 34% over the same period in 2022.
Slinging seamer Matheesha Pathirana 20, likely to be ruled out of the balance World Cup matches due to a right shoulder injury: so far, Pathirana has played 2 matches, picked up 2 wickets for 185 runs.
