February 23, Colombo (LNW):Sri Lanka and Vietnam have entered into a bilateral agreement for an agricultural technology exchange program between the governments of the two countries.

A memorandum of understanding (MoU) was signed between Sri Lanka and Vietnam on a number of issues, including the exchange of agricultural technology and the development of the agricultural sector in both countries.

Agriculture and Plantation Industry Minister Mahinda Amaraweera and Agriculture and Rural Development Minister of Vietnam Minh Hoan Le held bilateral discussions yesterday (21) in conjunction with the 37th Asia Pacific Conference of the United Nations Food and Agriculture Organization.

The agreement was signed on several matters such as agricultural technology, studies and research, exchange of experience, advanced seed production, application of fertilizers and pesticides, and training of farmers and officials so that they can get more yields.

The Vietnam Agriculture Minister expressed his pleasure regarding the fact that Sri Lanka has now become self-sufficient in rice. He also stated that Sri Lanka’s potential in food production should be appreciated, even though it is experiencing a difficult economic period.

Meanwhile, Minister Amaraweera said that although many people assumed that there was a food shortage in Sri Lanka due to the economic collapse, the people of Sri Lanka did not face a food crisis due to the measures taken by the government and the farmers despite the obstacles. He also said that the people should express their gratitude to the Sri Lankan farmers.

Specially, the new agricultural technology is widely used for the agricultural sector of our country at present. However, in order to get higher results from it, the country’s farmers should continue to use new agricultural technology.

Morerover , Agricultural technology is widely used in Vietnam. Vietnam has achieved a higher effectiveness in the sectors such as Agricultural research, new seeds with higher yield, animal husbandry, minimizing post-harvest losses.

Therefore, Minister of Agriculture Mahinda Amaraweera has mentioned that the government is giving priority to further expanding the agricultural technology currently used in the country.

The Minister has mentioned that it is extremely important to enter into a Memorandum of Understanding (MOU) for the exchange of agricultural technology between the Government of Vietnam and the Government of Sri Lanka.

He also claimed that the government has been able to create a wide awakening in all sectors under the current government by avoiding the difficulties that existed in the past.

Vietnam has introduced many varieties of paddy that can produce the highest paddy yield in the Asian region, and that many countries in the world are following the new technology in agricultural sector of Vietnam. 

February 23, Colombo (LNW): The government plans to relieve from the cumbersome official procedure on migrant workers with the introduction of a single digital platform for their safety, welfare, and job security preventing malpractices, corruption and abuses in the industry. 

The aim is to make the foreign employment from the time of recruitment process up to completion of their services in the Middle East and other countries offering streamlined and hassle free service for migrant workers, Minister of Foreign Employment Manusha Nananyakkara said.  .   

The Minister said that the cabinet approval will be sought soon to digitise foreign noted employment sector heeding to a recent written request made by three   and appeals made made by several other civil societies and organisations towards this end. 

The members of Rural Women’s Front, Jesmin Women Organisation and Galle Business Women’s Alliance have brought to the notice of the minister the shortcomings and difficulties faced by female migrant workers.   ’

Their main request is to devise a new system of foreign employment fulfilling digitising the sector in order to maintain close contacts with government authorities to seek their assistance as and when they need any assistance from the state.

  Several foreign employment rackets have been reported in the recent past, with the involvement of fake or unlicenced employment agencies, including a human trafficking ring in Oman. 

Foreign Employment Ministry has been urged to introduce a single digitaised platform entailing all information related to foreign employment recruitment, including those travelling overseas for employment, job opportunities, employer, destination, financial transactions and licenced employment agencies. 

The Safe Foundation has already stepped into develop this IT application, but the relevant ministries and state institutions are unable to implement it due to the lack of proper infrastructure. 

However, the ministry has directed the  intend to conduct a pilot test of this application at 12 districts at the district and regional levels and later roll it out to the relevant state institutions

The proposed system is to be a centralised system that will be monitored by the Sri Lanka Bureau of Foreign Employment (SLBFE) and connecting with other stakeholders in the industry, Minister Nanayakkara emphasised.  

He sressed the need of regularising the informal foreign employment sector including job agents focusing on the development of the sector creating a database transforming the sector competitive and increasing skilled labour force for the next 10 years.

Therefore, this database will enable SLBFE to monitor migrant workers locally and extend any assistance needed for them in the event of a difficulty and employment and payment issues overseas, he said.The Foreign Employment Ministry will conduct countrywide awareness campaigns for both officials and the public.and provide training for officials involved in the process channels, such as banks, for monitoring purposes

February 23, Colombo (LNW): In a recent media discussion on its Monetary Policy, the Central Bank expressed optimism regarding the ongoing rebound of domestic economic activity, anticipating its continuation throughout 2024. The bank emphasized the crucial role of appropriate policies in facilitating the gradual realization of the economy’s potential over the medium term.

The overall real GDP growth for 2023 is expected to show a moderate negative trend, indicating a milder contraction compared to the previous year. However, the Central Bank anticipates a return to positive economic growth in 2024.

A key factor influencing the economic outlook is the continuation of the IMF-EFF arrangement and the progress of envisaged structural reforms. The Central Bank highlighted that any disruption to this program could lead to high economic costs, including growth derailment, loss of confidence, and the prolongation of negative investor sentiments.

Sri Lanka achieved the significant milestone of reducing inflation to single-digit levels in 2023, restoring price stability from the elevated levels observed a year ago. The Central Bank’s projections indicate that headline inflation is expected to stabilize around the targeted level of 5% over the medium term.

The Central Bank acknowledged potential deviations from the inflation target in the near term, attributing them to recent tax amendments and supply-side disruptions. However, the bank believes that such deviations are unlikely to persist due to subdued demand conditions, as the economy is projected to operate below its full capacity for an extended period.

February 23, Colombo (LNW): In a significant development, President Ranil Wickremesinghe has underscored the need for a comprehensive restructuring of vocational education in Sri Lanka to align with the demands of the modern world. The primary goal is to equip the country’s youth with the necessary skills to excel in the competitive global job market.

During an observation tour at the Ratmalana Lalith Athulathmudali Vocational Training Centre on the 22nd of this month, the President detailed plans to consolidate all vocational training institutes in the country into a single vocational college. This centralized institution will offer contemporary subject-related courses designed to meet the evolving needs of the job market.

The Lalith Athulathmudali Vocational Training Centre, established in honor of the late Lalith Athulathmudali and currently under the National Youth Service Council, provides a diverse range of vocational technology courses. These include motor mechanics, information technology, 3D planning and designing, language studies, pre-school teaching, beauty culture, and other essential programs for the evolving job market.

During his visit, President Wickremesinghe toured the classrooms, engaging with students to inquire about their education and well-being. He participated in a brief discussion with the students, addressing their queries and expressing support for initiatives like establishing pre-schools after completing studies.

Responding to a question about opportunities for Sri Lankan youth in modern technology, the President emphasized the country’s swift digital transformation and the prioritization of advancements such as Artificial Intelligence (AI). He expressed optimism about Sri Lanka’s trajectory in embracing evolving technologies.

President Wickremesinghe assured the student who expressed a desire to establish her own pre-school that the government would focus on supporting such initiatives as part of the broader program to advance pre-school education.

The President concluded his visit by penning a commemorative note in the guest book at the Vocational Training Centre and posing for a group photograph with the students. He also engaged in a cordial discussion with the students, taking the opportunity to capture a few ‘selfies’ with them.

Key figures present at the event included Sports and Youth Affairs Ministry Secretary K. Mahesan, National Youth Service Council Chairman and Director General Pasindu Gunaratne, Director of Presidential Youth and Sustainable Development Randula Abeyweera, Officer in charge of Lalith Athulathmudali Vocational Training Centre B.M. Ranil, and other officers.

This week’s shocking revelation of a significant salary hike for Central Bank of Sri Lanka employees has stirred widespread criticism. Particularly targeted is Mahinda Siriwardena, the Secretary of the Ministry of Finance, who faced backlash for benefiting from the salary increase while transitioning from his role as Deputy Governor at the Central Bank.

Siriwardena, who once justified joining the Central Bank in 1992 for its lucrative salaries, found himself at the center of controversy. Amid mounting pressure from political representatives, trade unions, and civil organizations, he opted to step down from his position as Finance Ministry Secretary. In a recent development, he submitted his resignation letter to President Ranil Wickramasinghe, who, after a discussion, urged him to reconsider, emphasizing, “You work for the country and the people, not for anyone. So withdraw this letter of resignation.”

February 23, Colombo (LNW): Chairman of the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis, MP Gamini Waleboda, revealed that 1 million electricity connections were disconnected within the past year. This information was disclosed during a committee meeting on Thursday (22), where several institutions, including the Public Utilities Commission of Sri Lanka (PUCSL), were summoned.

MP Waleboda urged for the immediate reconnection of the disconnected electricity connections and proposed the implementation of a system for paying electricity tariffs in installments. Additionally, he called for the reconnection to be done without charging a fee and suggested that any reconnection fees be levied in installments as well.

February 23, Colombo (LNW): The Secretary to the Ministry of Trade, Commerce, and Food Security announced that approval has been granted to import an additional 30 million eggs from India for the upcoming festive season. This decision comes after the recent approval to import 60 million eggs between January and April.

In total, the permission for importing eggs now stands at 90 million, aiming to address the demand during the festive season.

February 23, Colombo (LNW): The Health Trade Union Alliance has announced that trade union representatives will meet with representatives of the Ministry of Health on Tuesday (27) to discuss their demands. Co-convener of the Alliance, Chanaka Dharmawickrama, mentioned that a report will be prepared to calculate the cost of the proposed allowance and assess the ability to pay.

The report will be jointly prepared by representatives of the Health Trade Union Alliance and representatives of the Health Ministry. Dharmawickrama stated that once the report is compiled, information regarding the allowance will be submitted to the Ministry of Finance.

The Health Trade Union Alliance, consisting of 72 health unions, recently initiated a strike action, demanding the Rs. 35,000 DAT allowance that the government recently granted to doctors be extended to them as well.

February 23, Colombo (LNW): The Land Valuation Indicator (LVI) for the Colombo District has indicated a year-on-year slowdown, recording a growth rate of 7.1 percent during the second half of 2023. The Central Bank of Sri Lanka (CBSL) reports that this slowdown is evident across all sub-indicators of LVI, including Residential, Commercial, and Industrial LVIs, which recorded annual increases of 8.8 percent, 6.7 percent, and 5.9 percent, respectively.

On a semi-annual basis, the LVI showed a deceleration, registering a moderate growth of 2.1 percent during the second half of 2023 compared to the first half of the same year. The CBSL attributes this deceleration to the slower increase in Industrial LVI, followed by Commercial and Residential LVIs, compared to the first half of 2023.

February 23, Colombo (LNW): Finance Ministry officials informed the Committee on Public Finance (COPF) that the revenue loss incurred from the initial ‘sugar scam’ should be classified as tax foregone instead of a tax loss. The officials made this statement during their appearance before the COPF on Tuesday (22).

The COPF members pressed the officials for data on specific companies that disproportionately benefited from the tax adjustment, amounting to Rs. 1.4 billion from six companies, with an additional six companies yet to be investigated.

Additionally, the COPF revisited the Value Added Tax (Amendment) Bill, which removed all VAT exemptions in November 2023. The committee inquired why the Finance Ministry had not adopted the recommendations made by the COPF regarding the VAT Amendment Bill. The COPF recommended reconsidering VAT exemptions for medical equipment, ambulances, high-protein agro foods for children, and agricultural items.

The VAT (Amendment) Bill increased the tax from 15% to 18% and decreased the threshold for VAT registration from Rs. 80 million to Rs. 60 million per annum, effective from January 01, 2024, aligning with the government’s goal to increase revenue to 14% of GDP in Sri Lanka.

The committee also questioned the delay in implementing VAT on foreign digital and software providers, creating an unequal playing field for domestic providers. Despite concerns raised by the COPF chair, Dr. Harsha de Silva, officials mentioned the need for a new law, set to come into effect in April 2025.

Furthermore, the COPF deliberated on the Social Security Contribution Levy (Amendment) Bill, which lowers the turnover threshold for registration from one hundred and twenty million rupees to sixty million rupees per annum, effective from January 01, 2024. The amendment was approved by the Committee.