February 24, Colombo (LNW): Sri Lanka shares closed up on a new high on Thursday after buying interest was stimulated through senses of economic stabilization, while the market generated a first ever net foreign inflow for 2024. 

The economy has channeled some stability and some recovery, resulting in buying power for the banking sector, capital, food and tourism sector,” an analyst said.

The Colombo stock market its first ever net foreign inflow for 2024 as it ended a shortened week marginally higher, CSE sources said. 

Upto Wednesday, CSE had seen net foreign outflow of Rs. 3.3 billion and yesterday net inflow amounted to Rs. 211.6 million with net foreign buying most in JKH at Rs. 365.7 million.

First Capital said foreign investors turning net buyers on Thursdy was after nearly 2 months.

The lack of net foreign inflow year to date until Wednesday was of concern to stock broking firms and capital market promoters. Last year the Colombo Stock Exchange saw net foreign inflow Rs. 4.3 billion though it ended December with a net outflow of Rs. 653.4 million.

At present the Market P/E is 10.64 times which is considered attractive whilst several counters in CSE such as from the banking sector are trading below book value.

For the week the benchmark ASPI gained by 0.7% and the active S&P SL20 by 0.5%. Average daily turnover was Rs. 971 million. Last week ASPI and the S&P SL20 gained 0.2% and 0.7% respectively recording an average daily turnover of Rs. 862 million.

Asia Securities said the ASPI bounced back from its intra-day losses to end slightly up on Thursday, driven by increased market participation and a subsequent surge in turnover.

JKH dominated turnover during the session (Rs. 572 million) amidst a notable pick-up in buying interest. 

First Capital said the bourse experienced a volatile session of trading during the day but managed to halt on the green zone at 10,655 gaining 6 points, continuing the positive momentum from the previous day.

Blue-chip companies namely EXPO and JKH mainly aided the ASPI to land on the positive territory backed by high-net-worth investor participation, however the retail participation continued to remain relatively low. 

The Banking sector shares namely SAMP, HNB and NDB displayed a negative sentiment mainly because of the flat results reported for the 4Q2023 period, which dragged the index down.

Turnover was 4% higher than the month’s average backed by the Capital Goods sector and Transportation sector for a joint contribution of 55%.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Expolanka Holdings and LB Finance. Mixed interest was observed in Lanka IOC, Nations Trust Bank and Haycarb whilst retail interest was noted in Dialog Axiata, Lanka Milk Foods and Distilleries.

February 24, Colombo (LNW): The Merchant Marine Secretariat of Germany has announced that a comprehensive report on the Sri Lankan crew member who went missing from the MV Sanchuka will be received next week. A senior official confirmed the receipt of an initial report but emphasized that further details are expected in the coming week.

Chirath Sandaru, a 21-year-old resident of Uduwara in Millaniya and an alumnus of Mahanama College, Colombo, went missing while serving on Germany’s MV Sanchuka. He joined the vessel as a crew member on January 2, 2024.

In response to the ongoing situation, the National Merchant Seamen’s Association has declared its intention to seek international assistance in locating the missing Sri Lankan crew member. Palitha Athukorala, the association’s chairman, revealed that they have formally requested the aid of the International Transport Workers’ Federation to bolster efforts in finding Chirath Sandaru.

The maritime community and concerned authorities are joining forces to intensify search and rescue operations, demonstrating a collaborative commitment to ensuring the safe return of the missing crew member.

1. U.S. Deputy Secretary of State Richard Verma met with President Ranil Wickremesinghe and commended Sri Lanka’s efforts to revive its economy. President Wickremesinghe briefed Verma on debt restructuring progress and highlighted key economic reforms, including an agriculture modernization program. The discussions underscored mutual appreciation for the Sri Lankan government’s economic initiatives.
2. Former Chief of Staff of the Sri Lanka Army, Major General Sathyapriya Liyanage has extended his support to the main opposition, Samagi Jana Balawegaya (SJB) led by MP Sajith Premadasa.
3. In response to criticism over the substantial salary increase for Central Bank employees, a leading parliamentary committee has requested a report from the Central Bank. The committee, chaired by MP Gamini Waleboda, is seeking information on the legal basis for the salary increment without parliamentary approval. This inquiry arose during a committee meeting where Central Bank officials were present, addressing concerns about the salary hike amid the economic crisis.
4. The Government Medical Officers Association (GMOA) has raised concerns over reports of people posing as doctors to treat patients in various parts of Sri Lanka. GMOA revealed that over 40,000 individuals are found to be posing as doctors, treating patients with serious illnesses such as cancer, kidney and heart ailments.
5. The Ministry of Foreign Affairs, along with the Sri Lankan Embassy in Myanmar, is actively working to rescue and repatriate Sri Lankan nationals who fell victim to human trafficking in Myanmar. The individuals were deceived through online scams, particularly within the Myawaddy area, where they were falsely promised legitimate IT job opportunities. Efforts are underway to address this situation and bring back the affected Sri Lankan citizens.
6. The Health Trade Union Alliance said trade union representatives will meet representatives of the Ministry of Health on Tuesday (27) to discuss their demands. Co-convener of the Alliance Chanaka Dharmawickrama said a report is due to be prepared to calculate the cost for the proposed allowance and the ability to pay.
7. Nearly 1 million electricity connections were disconnected within 2023, the Parliamentary Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis was informed.
8. The government is set to replace the University Grants Commission with the establishment of the National Higher Education Development Commission, as announced by State Minister of Higher Education Dr. Suren Raghavan.
9. Land Valuation Indicator (LVI) for Colombo District indicated a slowdown on a year-on-year basis, recording a growth rate of 7.1 per cent during the second half of 2023. This slowdown could be observed in all sub-indicators of LVI, namely Residential, Commercial and Industrial LVIs which recorded annual increases of 8.8 per cent, 6.7 per cent and 5.9 per cent, respectively.
10. A ‘white-only’ themed party planned for February 24 at a Russian-run cafe in the south has been canceled by organizers following public outcry. The event, labeled as an ‘Opening White Party,’ faced backlash for its discriminatory nature. The controversial face control policy, restricting entry based on factors like white skin, wealth, style, or demeanor, stirred significant controversy before its cancellation.

February 24, Colombo (LNW): United States Deputy Secretary of State for Management and Resources, Richard Verma, expressed appreciation for the commendable efforts undertaken by the Sri Lankan Government to revitalize its economy during a meeting with President Ranil Wickremesinghe.

In the discussions, President Wickremesinghe provided an overview of the progress in debt restructuring and highlighted key economic reform measures, including the Agriculture Modernization Program. The Deputy Secretary acknowledged and lauded these initiatives aimed at steering the Sri Lankan economy on a positive trajectory.

Turning attention to global security matters, the Deputy Secretary extended gratitude to the Sri Lankan Government for its support in ongoing naval operations in the Red Sea. President Wickremesinghe, in response, reiterated Sri Lanka’s steadfast commitment to Freedom of Navigation in the Indian Ocean. Additionally, the President expressed solidarity with Saudi Arabia’s stance on the Houthi rebels, emphasizing a shared dedication to regional stability.

Accompanying the President were Secretary to the President Mr. Saman Ekanayake, Acting Secretary to the Ministry of Foreign Affairs U.L.M. Jauhar, Director of International Affairs Dinouk Colombage, and Director of America’s Desk at the Ministry of Foreign Affairs Chathura Perera. The meeting signifies the growing collaboration and mutual interests between Sri Lanka and the United States in both economic and security spheres.

February 24, Colombo (LNW): The Foreign Affairs Ministry, in collaboration with the Sri Lankan mission in Myanmar, is intensifying efforts to rescue and repatriate Sri Lankan nationals who have fallen prey to human trafficking schemes in Myanmar. Foreign Minister Ali Sabry raised the issue with the Deputy Prime Minister and Minister of Foreign Affairs of Myanmar, urgently seeking intervention to rescue Sri Lankan victims ensnared in various online scams within the Myawaddy area.

According to the ministry’s statement, these Sri Lankans were coerced into fraudulent activities under the guise of legitimate job offers in the IT field. The Embassy of Sri Lanka in Myanmar has consistently alerted Myanmar authorities about the dire situation, urging immediate action to free the victims from cybercriminal activities orchestrated by traffickers. The Myanmar Government has reportedly assured that all necessary measures will be taken to swiftly rescue the victims.

Acting Foreign Affairs Ministry Secretary U.L. Mohammed Jauhar met Myanmar’s Ambassador in Colombo on February 22, reiterating the urgent need for assistance in the safe rescue and repatriation of Sri Lankan nationals in the Myawaddy area. However, difficulties in accessing the concerned area due to the prevailing situation have been acknowledged by the Myanmar Government.

The Foreign Affairs Ministry is closely coordinating with Sri Lankan Missions in neighboring Southeast Asian countries and international organizations to ensure the well-being and prompt repatriation of affected Sri Lankans. Additionally, collaboration with other countries whose nationals have been similarly affected is being explored.

The ministry cautions the families of the affected persons against individuals attempting to collect money by promising assistance in the rescue and repatriation process. They urge extreme caution in dealing with such individuals.

Assuring constant contact with relevant authorities, the Foreign Affairs Ministry is committed to exploring all possible avenues for the rescue and safe repatriation of Sri Lankans who have become victims of human trafficking in Myanmar, in close collaboration with the Myanmar Government authorities.

February 24, Colombo (LNW): In a decisive move, Secretary to the President, Saman Ekanayake, has instructed the initiation of legal proceedings against the unauthorized conferment and use of national awards and honorary titles. The Presidential Secretariat is actively monitoring instances where individuals and non-governmental entities falsely present awards, certificates, and titles purporting to be prestigious national honors bestowed by the President to distinguished Sri Lankans.

These recognitions, traditionally awarded through a meticulous formal process evaluated by designated authorities, are now subject to scrutiny as the President’s Secretary stresses the urgency of putting an end to the misappropriation of national award titles by unauthorized entities. Such unauthorized actions are deemed to inflict considerable injustice and disrespect upon genuinely esteemed Sri Lankan recipients of these honors.

The establishment of the National Awards in 1986, followed by subsequent amendments detailed in various Government Gazettes, underscores the official and regulated nature of these honors. President Ranil Wickremesinghe further ratified the introduction of two new awards, namely “Vishishta Kaushalyabhimani” and “Vishishta Republica Abhimani,” through a Ministerial Note on February 18, 2023.

The nomination process for National Awards involves Provincial Governors and Cabinet Ministers, with recommendations evaluated by a Selection Committee appointed by the President and chaired by the Prime Minister’s Secretary. Plans are in progress to introduce a new application system to actively engage eligible Sri Lankans in the nomination process.

After the President’s endorsement, a panel of academic experts appointed by the President’s Secretary assesses and selects the awardees. The official publication of chosen recipients occurs through a gazette, and the awards are ceremonially presented by the President on designated occasions, including Independence Day, National Hero’s Day, and events honoring non-Sri Lankan recipients.

February 24, Colombo (LNW):Deputy Secretary of State for Management and Resources, Richard Verma, made a significant announcement yesterday, revealing the United States’ commitment to providing yet another medium endurance cutter to Sri Lanka in the near future.

“I am pleased to announce that the Department of State has notified Congress of our intent to transfer a fourth medium endurance cutter to Sri Lanka,” stated Verma during his visit aboard the SLNS Vijayabahu, one of the three former U.S. Coast Guard cutters previously transferred to the Sri Lanka Navy. The Department of State has allocated US$ 9 million in Foreign Military Financing to support this initiative.

Verma emphasized the importance of the pending cutter transfer, expressing, “We look forward to offering the cutter, pending the completion of Congress’ notification period. If completed, this transfer would further strengthen defense cooperation between the United States and Sri Lanka.”

Highlighting the potential impact, Verma articulated his hope that the new vessel would enhance Sri Lanka’s capability to patrol its Exclusive Economic Zone, monitor its search and rescue area, and provide additional security for ships navigating the busy sea lanes of the Indian Ocean.

The U.S. Ambassador in Colombo underscored the ongoing collaboration between the two nations, noting the previous transfer of three cutters to the Sri Lankan Navy. These vessels have been instrumental in maritime operations, law enforcement missions, countering human and drug trafficking, and supporting humanitarian assistance and disaster response efforts.

“The eventual transfer of a fourth vessel would be just one more point in a long history of cooperation between Sri Lanka and the United States in preserving a free and open Indo-Pacific region,” the Ambassador added.

Deputy Secretary Verma, in addition to the cutter announcement, visited the site of the West Container Terminal (WCT) at the Port of Colombo. Financed with $553 million from the U.S. International Development Finance Corporation, the WCT, constructed by Colombo West International Terminal (CWIT) Private Limited, is set to become a vital deepwater shipping container terminal, contributing crucial infrastructure for the South Asian region. Operating at near capacity since 2021, the WCT aims to boost Colombo’s shipping capacity, solidifying its role as a premier logistics hub connecting major routes and markets, all without adding to Sri Lanka’s sovereign debt.

February 24, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Southern, Sabaragamuwa, Central, North-western and Uva provinces in the evening or night.

Showers or thundershowers may occur at a few places in North-central province in the evening or night.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Uva provinces and in Galle and Matara districts during the morning.

The public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

February 23, Colombo (LNW): Sri Lanka will get an update on the GSP+ trade concessions at a Joint Commission meeting with the European Union, the Foreign Ministry said.

Three working groups on Governance, Rule of Law and Human Rights, Trade and Economic Cooperation, Development Cooperation will report to the Joint Commission.

“The European Union will also brief on the current developments in the EU including an update on new GSP Regulation and the new cycle of the EU GSP+ concessions,” the statement said.

The 26th session of the Joint Commission between Sri Lanka and the European Union will be convened on 22 February 2024 in Brussels. 

The meeting will be co-chaired by Secretary of the Ministry of Foreign Affairs of Sri Lanka Aruni Wijewardane and EU European External Action Service Deputy Managing Director for Asia Pacific Paola Pampaloni.

Sri Lanka delegation to the Joint Commission will comprise senior officials of the Ministry of Foreign Affairs, Attorney General’s Department and Ministry of Finance.

The EU- Sri Lanka Joint Commission serves as a platform for dialogue and cooperation between Sri Lanka and the European Union, covering a broad range of bilateral and multilateral issues of mutual interest inter alia trade and investments, development assistance, fisheries, education, counterterrorism, governance and human rights, Indo-pacific & maritime security and environment.

The outcome of the three Working Groups which reports to the Joint Commission, Governance, Rule of Law and Human Rights, Trade and Economic Cooperation, Development Cooperation will be presented to the Joint Commission.

The European Union will also brief on the current developments in the EU including an update on new GSP Regulation and the new cycle of the EU GSP+ concessions.

The previous session of the Joint Commission meeting was held in May 2023 in Colombo

Among the matters to be discussed are; economic and trade policy developments, bilateral market access issues, new GSP Regulation for 2024-2034 and trade related assistance. 

 The EU side acknowledged the progress made by Sri Lanka towards economic stability and attempts made to expand trade with the EU, and requested further cooperation and engagement in reviewing policy directives. 

The EU side also highlighted the features of the new GSP Scheme which will come into effect from the year 2024. Sri Lanka is an applicant to the GSP Plus facility under the new Scheme which will enable Sri Lankan exporters to export more than 7000 products under zero duty to EU member countries for the next ten years.

 Currently, the EU is the second largest export market for Sri Lanka with a value of US$ 3 Billion in the year 2022. Apparel exports dominate the export basket with a 54% share of exports in 2022. The other key export products are pneumatic tyres, tea, articles of apparel, tobacco and liquid coconut milk