April 24, Colombo (LNW): A top economist yesterday raised concerns over the “loosening of fiscal squeeze” by authorities to stimulate economic growth. Doing so could lead to potential risks of jeopardising Sri Lanka’s agreements with the International Monetary Fund (IMF). 

Institute of Policy Studies (IPS) Executive Director Dr. Dushni Weerakoon asserted that there is only room for tweaks at the margin on both the expenditure and revenue fronts. 

“Vote-winning quick fixes have turned out to be very costly in the past and the stakes are even higher this time around. 

“A premature fiscal loosening will unsettle Sri Lanka’s creditors, as will any attempts to push down the timeline to achieve benchmark targets on fiscal ratios,” said Dr. Weerakoon in an analysis published on East Asia Forum yesterday.

The senior economist noted that creditors typically prefer early settlements to deferred settlements as the stabilisation process drags on. 

“Creditors and investors alike know that 2024 is not the end of Sri Lanka’s electoral cycle and parliamentary elections are scheduled in 2025,” she pointed out.

According to Dr. Weerakoon, this suggests the need for caution on the economic front. Relaxing fiscal austerity should be tightly focused on scaling back inefficient spending and using the money to target relief for the poor.

 In the interim, monetary policy can be used as the main tool to boost demand, while recognising that there are limits. 

“This recovery path is more anaemic after an acute economic shock, where consumers and businesses are weighed down by debt, as evident in Sri Lanka’s experience,” she said.

Dr. Weerakoon stressed that the priority over the next few months is to build on existing progress and finalise an external debt restructuring deal before the elections.

Sri Lanka is seeking a five-year moratorium from its bilateral creditors and bondholders with the intention of starting repayments in 2028.

A debt treatment plan with India and the Paris Club, and talks with China has progressed. Bondholders’ negotiations are continuing, though slow.

While a final deal will require agreement among all these private and official creditors, Weerakoon cautioned that if negotiations are not concluded ahead of the elections, the delay will add another layer of uncertainty for months to come.

Therefore, to avert future crises, Sri Lanka must take cautious and measured steps to bring about real change in its economic fundamentals. 

“This approach suggests that there is little room for boom times just yet. On the balance of probabilities, it is preferable to acknowledge that recoveries after economic crises and defaults are generally weak and fragile.

“Embracing a period of modest growth is preferable to once again plunging into chaos due to bad policymaking,” said Dr. Weerakoon.

April 24, Colombo (LNW): In the wake of the national flagcarrier’ restructure Air Seychelles, the Republic of Seychelles’ national airline and Sri Lankan Airlines, the flag carrier of Sri Lanka, have announced a new code-sharing partnership, expanding the number of destinations accessible to customers from the paradise islands flying between Mahe and Colombo.

Over 20 destinations are included in the partnership, which includes much requested ones such as Sydney and Melbourne in Australia as well as other popular stops in India, Thailand, Malaysia and Singapore. SriLankan Airlines’ Passengers will also be able to fly from Colombo to Mahé with the activation of the codeshare partnership.

This new codeshare agreement will allow Air Seychelles and SriLankan Airlines to place their codes on each other’s flights and enable passengers to continue their journey conveniently using a single booking and with their baggage checked in all the way to the final destination. 

It also means passengers can book their travels with both airlines, through online travel agencies, as well as with local travel agents.

This codeshare partnership Air six bidders have submitted proposals for qualifications to take over a staje of the Sri Lanka Airlines. 

Malaysian budget carrier AirAsia is among six bidders for the divestititure of state-run Sri Lankan Airlines in the request for qualification (RfQ) process extended for four times on the request of the International Finance Corporation (IFC), the transaction advisor on the privatization, the finance ministry announced.   

In June last year, when Air Seychelles launched the Colombo service, the two airlines signed an initial interline agreement that introduced multiple cities within the south-east Asia region to the local market’s choice of destinations.

Sandy Benoiton, Air Seychelles’ Chief Executive Officer shares “now that we have been flying to Colombo for over 9 months, the twice-weekly flights have proven successful. 

The next step to solidifying our relationship is with this code-share, allowing even more passengers the convenience of a single ticket to more points served by our partner in Asia and Australia.

Richard Nuttall, Chief Executive Officer of SriLankan Airlines stated, “We are pleased to boost our codeshare network and presence in the African region through this new partnership. 

We look forward to working with Air Seychelles to provide our customers even more African destination options in the coming years.”

Flights under the codeshare agreement are available to book now and will begin operating in April 2024.

April 24, Colombo (LNW): The Government has unveiled a comprehensive national digital economy strategy for Sri Lanka titled “Digital Sri Lanka 2030” along with an implementation plan with a view of transforming the island nation’s outdated and archaic public administration, and financial management procedures.

The strategy recognises the importance of building a robust, export-oriented economy, and the need to create strong economic and technological partnerships with partners around the world

Emphasizing the need of overhauling the entire economic situation in the country, former finance minister Ravi Karunanayake said that  digital economy refers to the economic activities that emerge from connecting individuals, businesses, devices, data and operations through digital technology.

He noted that the present administration headed by visionary leader President Ranil Wickremasinghe has a vision for 2030 to digitally empower Sri Lanka for innovation, inclusion and sustainable growth.

No other leader or political party in Sri Lanka except President Ranil Wickremasighe to steer the country towards modernization with a systematic change not ad hoc changes suggested by present day opposition political party leaders.   

Mr Karunanayake disclosed that completion and fair trade along e-business.e-business infrastructure and e-commerce will be given priority in the National Digital Economy Strategy.

To achieve the desired outcomes, the national digital strategy for Sri Lanka includes actions across six strategic areas. Underpinning these areas are six core principles and six critical enablers, official sources said. .

The six core principles are; inclusive, innovative, sustainable, global, human-centric and rights-based.

The six strategic areas are infrastructure connectivity and access, skills, literacy, industry and jobs; connected digital government; cyber security, safety and privacy; digital financial services and digitisation across sectors and SMEs.

The six critical enablers are legal and regulatory framework; digital identity; institutional governance; data governance; stakeholder engagement and private investment.

According to the Ministry of Technology, the focus moving forward is on developing the Sri Lankan digital ecosystem as a core component of a more-vibrant, socially inclusive, export-oriented, and green economy.

The national digital strategy will be an integral part of the country’s economic recovery and growth between now and 2030 and will be implemented in phases. 

In the first phase, over the next two years (until the end of 2025), the emphasis will be on setting the stage through reforms and selected investments to position the country for recovery. 

This will require strengthening institutions to rebuild the business climate, attracting private investment, and driving service exports, whilst ensuring that inclusive and improved digital services support improved governance and accountability.

Beyond 2026, the focus will shift to strategically positioning the country as a digital innovation and entrepreneurship hub in the Asia-Pacific, investing in the future of technology and jobs, and fully integrating digital technology across all of society and the economy.

April 24, Colombo (LNW): President Ranil Wickremesinghe issued a stark warning against the politicization of education, emphasizing its detrimental effects on the nation’s future. Speaking at the 10th Biennial Conference of the All Island Professional Lecturers’ Association (APLA) held at the Nelum Pokuna Theater in Colombo, President Wickremesinghe urged all stakeholders to prioritize national interest over personal agendas in shaping the country’s education system.

Highlighting the urgency of the matter, President Wickremesinghe called for concerted efforts from all parties to devise a comprehensive education reform plan within the next two to three years. He stressed the need for inclusive discussions, free from personal biases, to ensure the development of an effective education framework that caters to the needs of the nation.

The APLA, established in 2004 by a coalition of tuition teachers nationwide, hosted the conference. During the event, President Wickremesinghe honored Dr. K. Ariyasinghe, a founding member of APLA, and other senior teachers with the Senior Lecturers Award, recognizing their contributions to the field of education.

In a gesture of appreciation, Mr. Ravindra Bandara, President of the Association, presented President Wickremesinghe with a commemorative gift. The President then joined the executive committee members of APLA for a group photograph, underscoring the spirit of collaboration between the government and education stakeholders.

President Wickremesinghe assured attendees that the government’s forthcoming education reforms would not be confined to education experts alone but would actively involve input from school teachers, professionals in the economic sector, and organizations like APLA. Emphasizing the importance of inclusive dialogue, he reiterated his commitment to fostering a conducive environment for meaningful reforms in the education sector.

1. President Ranil Wickremesinghe emphasized the peril of politicizing education, warning that such a move would inevitably lead to the nation’s downfall. He urged all stakeholders to set aside personal biases and engage in collaborative discussions to devise the most effective education system for the country within the next two to three years.
2. The National People’s Power set debate dates for Anura Kumara Dissanayake and Sajith Premadasa, informing SJB in a letter. The proposed dates are May 7, 9, 13, and 14. SJB’s Nalin Bandara suggested discussing and agreeing on a convenient date, he also told that Sajith Premadasa will not join the debate on the dates proposed by the NPP due to prior commitments.
3. National People’s Power Leader Anura Kumara Dissanayake met with a delegation of the Chinese Communist Party including the Vice Minister of the International Department of the Chinese Communist Party at the JVP head office. The discussions focused on the current political situation, upcoming elections and possible political developments.
4. The Colombo Chief Magistrate’s Court has delivered an order against the protest march planned to be staged by the Ceylon Electricity Board (CEB) employees’ union near the Polduwa Junction in Welikada police area.
5. Minister of Power and Energy Kanchana Wijesekera says the Ceylon Electricity Board (CEB) incurred a loss to the tune of Rs. 9.8 billion per annum as a result of the delays in the construction and commissioning of the Uma Oya hydropower plant.
6. The Consular Affairs Division of the Ministry of Foreign Affairs will be relocated to the new premises on the 16th floor of “Suhurupaya” on Sri Subhuthipura Road, Battaramulla with effect from 02 May, the Foreign Affairs Ministry said.
7. General Manager of Railways H. M. K. W. Bandara passed away on Tuesday (23) morning due to a sudden illness. According to sources, he succumbed to his illness while being rushed to the Anuradhapura Teaching Hospital.
8. Air Seychelles, the Republic of Seychelles’ national airline and Sri Lankan Airlines, the flag carrier of Sri Lanka, have announced a new code-sharing partnership, expanding the number of destinations accessible to customers from the paradise islands flying between Mahe and Colombo.
9. In anticipation of the Iranian President’s half-day visit to Sri Lanka on Wednesday, April 24, authorities have announced a series of traffic disruptions and road closures. According to police reports, several roads in Mattala, Thanamalvila, Wellawaya, and Uma Oya will be closed from 9:45 am to 11 am.
10. Sri Lanka’s star batter Chamari Athapaththu edged Natalie Sciver-Brunt to become the top-ranked batter in the ICC Women’s ODI batting rankings.

April 24, Colombo (LNW): Despite initial challenges in discussions between the Government of Sri Lanka and private bondholders, the International Monetary Fund (IMF) remains hopeful for positive outcomes in the future.

Krishna Srinivasan, Director of the Asia and Pacific Department (APD) at the IMF, expressed satisfaction with Sri Lanka’s progress under the four-year Extended Fund Facility (EFF) programme. Srinivasan highlighted that Sri Lanka’s economic recovery efforts are yielding promising results, as evidenced by several key indicators.

During the IMF press conference on the Regional Economic Outlook for Asia and Pacific in Washington DC, held on Thursday, April 18, Srinivasan noted early signs of economic recovery in Sri Lanka. He cited a 3 percent year-on-year expansion of real GDP in the second half of 2023, a significant decrease in inflation from a peak of 70 percent in September 2022 to 0.9 percent in March 2024, and an increase of US$ 2.5 billion in Gross Official Foreign Reserves in 2023. Additionally, Sri Lanka achieved a surplus of 0.6 percent of Gross Domestic Product (GDP) in its primary balance in 2023.

While acknowledging the challenges ahead for Sri Lanka’s full economic recovery, Srinivasan expressed optimism about the progress being made in terms of economic growth and inflation. He highlighted the ongoing debt restructuring negotiations, commending the positive strides made with official creditors and expressing confidence in reaching agreements with private sector creditors in due course.

Regarding the debt restructuring discussions with private sector creditors, Srinivasan emphasized that negotiations are ongoing, with the IMF anticipating favorable outcomes in the future.

Srinivasan reaffirmed the importance of Sri Lanka’s commitment to IMF-recommended reforms, particularly in fiscal management and structural adjustments. He underscored the significance of addressing governance issues and reducing corruption as integral components of Sri Lanka’s reform agenda for sustained economic recovery.

April 24, Colombo (LNW): The Consular Affairs Division of the Ministry of Foreign Affairs is set to move to its new premises on the 16th floor of “Suhurupaya”, Sri Subhuthipura Road, Battaramulla, effective from 2nd May 2024. This relocation aims to provide enhanced services to the public in a more convenient and modern setting.

Starting from the aforementioned date, all consular services will be provided to the public at the new office premises during regular office hours, from Monday to Friday, 8:30 am to 4:15 pm.

To facilitate the smooth transition of the Electronic Document Authentication System (e-DAS) to the new premises at Suhurupaya, document authentication services provided by the Consular Affairs Division in Colombo will be temporarily suspended on 29th and 30th April 2024.

However, during this transition period, the Regional Consular Offices in Jaffna, Trincomalee, Kurunegala, Kandy, and Matara will remain open to the public during regular office hours. Applicants can submit their applications for document authentication to the Regional Offices as usual. Authenticated documents will be delivered to the applicants on Thursday, 2nd May 2024.

April 24, Colombo (LNW): In a landmark meeting at the State House in Banjul yesterday, Ambassador Kana Kananathan, the inaugural Ambassador of Sri Lanka to The Gambia, engaged in bilateral discussions with President Adama Barrow. This crucial dialogue served as a pivotal moment in fortifying the bonds of friendship and cooperation between the two nations.

The discussions between Ambassador Kananathan and President Barrow focused on avenues for enhancing collaboration across various sectors, with a particular emphasis on trade and investment. Both sides expressed their firm commitment to exploring new opportunities for mutual benefit and shared prosperity, underscoring the potential for deeper cooperation.

President Barrow extended his heartfelt appreciation to President Wickremesinghe for his remarkable efforts in stabilizing Sri Lanka’s economy within a notably short span of time. He commended Sri Lanka’s astute leadership and effective economic policies, which have significantly contributed to the nation’s economic resilience and growth.

A significant highlight of the discussions was the upcoming Organisation of Islamic Cooperation (OIC) Summit, slated to be hosted by The Gambia in the first week of May. Ambassador Kananathan conveyed Sri Lanka’s congratulations and unwavering support for The Gambia in successfully organizing and hosting this prestigious event. The summit is expected to convene leaders from across the Islamic world to address pressing global issues, further cementing The Gambia’s position on the international stage.

Reflecting on the productive meeting, Ambassador Kananathan emphasized, “Today’s discussions exemplify the deep-rooted friendship and shared values that bind Sri Lanka and The Gambia together. As the first Ambassador of Sri Lanka to The Gambia, I am committed to nurturing this relationship and exploring new avenues for collaboration that will benefit our peoples and contribute to regional and global stability.”

President Barrow expressed his appreciation for Sri Lanka’s steadfast support and emphasized the importance of further strengthening ties between the two nations.

April 24, Colombo (LNW): The President of the Islamic Republic of Iran, Dr. Ebrahim Raisi, is set to embark on a significant journey to Sri Lanka. His mission? To inaugurate the long-awaited Uma Oya Multipurpose Development Project (UOMDP), marking a historic milestone in the bilateral relations between the two nations.

This visit comes in response to a special invitation extended by Sri Lankan President Ranil Wickremasinghe, marking the first visit of an Iranian President to Sri Lanka since the notable visit of former President Dr. Mahmoud Ahmadinejad in April 2008.

The highlight of President Raisi’s itinerary will be his participation in a public ceremony marking the inauguration of the Uma Oya Multipurpose Development Project (UOMDP) this morning. This project, akin to the grand Mahaweli Development Project, stands as one of Sri Lanka’s largest irrigation endeavors, aiming to address water scarcity in the southeastern dry region of the country.

President Raisi’s visit is not merely ceremonial; it holds substantial diplomatic weight as well. Five Memorandums of Understanding (MoUs) are set to be signed during his visit, aiming to strengthen bilateral relations between Iran and Sri Lanka, showcasing a commitment to mutual cooperation and development.

The Uma Oya Multipurpose Development Project (UOMDP) is a crucial initiative for Sri Lanka, aiming to redirect an annual average of 145 million cubic meters (MCM) of excess water from the Uma Oya basin to the Kirindi Oya basin. This redirection, executed with careful environmental considerations, aims to benefit agricultural, industrial, and domestic sectors in the region.

The project, which commenced with an agreement signed in 2007, faced numerous challenges during its construction phase, including technical complexities, financial hurdles, and the impact of the global Covid-19 pandemic. Despite these obstacles, the project persevered, with its completion marking a significant achievement in engineering and bilateral cooperation.

Upon completion, the Uma Oya Multipurpose Development Project will not only address water scarcity issues but also contribute to agricultural development, energy generation, and regional infrastructure enhancement. It symbolizes the unwavering commitment of both nations towards mutual progress and prosperity.

The visit of President Raisi underscores the longstanding ties between Sri Lanka and Iran, dating back centuries. It reflects the depth of their diplomatic relations and the shared vision for a future marked by cooperation and mutual growth across various sectors.