Colombo (LNW): The Sri Lankan Rupee (LKR) indicates a slight fluctuation against the US Dollar today (16) 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. 316.18 from Rs. 315.93, and the selling price to Rs. 329.37 from Rs. 329.12.
At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 316.78 from Rs. 317.54, but the selling price remains steady at Rs. 327.75.
At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 318 and Rs. 328, respectively.
Colombo (LNW): The Finance Ministry’s drastic import tax cut on maize aimed at lowering the cost of animal feed produced with maize has opened doors for a few importing companies to fish in troubled waters , commodity importers complained.
About 200,000 metric tons of maize is imported annually without taking into consideration the amount of maize grown and harvested in the country.
Concerns are raised regarding a potential loss that the government will make to the tune of Rs50 per kilogram when importing maize from Pakistan.
10,000 metric tons of maize has been allocated to the National Food Promotion Board, official sources said.
The government’s decision to reduce the import tax on maize is aimed at lowering the cost of animal feed produced with maize.
State Minister for Finance Ranjith Siyambalapitiya stated in August that the government had reduced the import tax on a kilogram of maize by 50 rupees.
The previous import duty for a kilogram of maize was 75 rupees. Consequently, the import duty on a kilogram of maize has now been lowered to 25 rupees.
The government’s decision to reduce the import tax on maize is aimed at lowering the cost of animal feed produced with maize.
However, it has been reported that some companies are attempting to capitalise on the tax concessions provided for maize imports to Sri Lanka; which would then potentially generate substantial profits.
Consequently, there seems to be plans to distribute the tender for maize importation among multiple companies, without granting the tender to those companies that have been importing maize so far.
These plans are driven by expectations of earning higher profits.
Meanwhile, the Ministry of Agriculture recently made a decision to impose and subsequently lift a ban on maize imports.
The Department of Animal Production & Health in Peradeniya (Central Province) decided to import maize due to a shortage of two hundred thousand metric tons.
The Department of Animal Production and Health (DAPH) planned to distribute the imported maize; allocating 70 percent to companies that utilise maize in their production and the remaining 30 percent to companies importing it for animal feed.
Consequently, companies involved in various products using maize have already commenced importing 70 percent of the designated quantity.
The National Food Promotion Board was tasked with importing 10 percent of the remaining 30 percent of maize.
Initially, the Ministry of Agriculture had planned and granted permission to allocate the remaining 20 percent to other exporters.
However, without providing any explanation, the Ministry halted the import of maize stocks that had been allowed for these exporters.
Colombo (LNW): Small and medium sector of the tourism industry is demanding a fresh and longer term moratorium insisting that proper recovery remains elusive, hence debt burden crippling its survival.
Following triple blows starting from the 2019 Easter Sunday terror attacks, COVID -19 pandemic and political-economic crisis, the tourism industry was given a 4 year moratorium for debt repayment.
However, tourism sector SMEs complain that the accumulated capital and interest payable, during this period, was arranged into two separate loans by the lending Institutions.
“This resulted in the total accumulated amount exceeding the capital obtained, at the initial stage, even after paying several instalments up to the Easter attack,” they said.
The banks had called upon the beneficiaries of the Moratorium to commence the settlement of the full accumulated debt and the interest, within 60 months.
“We are not even in a position to earn sufficient dollars to cover the monthly bank commitments, given the period is only 60 months.
This is not feasible for SMEs due to the short period of time for settlement and its adverse effect on the cash flow of the companies concerned,” the SME sector pointed out.
They pointed out over 300 parate executions from January to June and more than 500 new parate actions by banks in the last 3 months.
The total sum borrowed by the SME sector is approximately $ 250 million (over Rs. 80 billion) whilst if the large scale category included it is over Rs. 500 billion.
The SME sector is recommending that banks should consider rescheduling the loans for at least 10 years and the interest that is accumulated during the moratorium should be waived off.
It was stressed that the SMEs contribute immensely to the economic and social development of Sri Lankans, and the geographic areas in which they live.
The Industry contributes to the generation of employment opportunities, directly in the hotels and indirectly with the supply chain and small businesses around the hotels, catering to the needs of the tourists.
Collectively, these economic activities contribute to enhancing the buying power of the people and the economic growth of the respective areas.
SME firms said the expected full recovery of the tourism sector in 2024, is bound to generate much needed foreign currency to the country.
Sri Lanka received $ 4.3 billion in 2018, with the highest recorded tourist arrivals of 2.4 million with a total employment of approximately 400,000. If Sri Lanka performs equally well in the near future, the industry should sustain during difficult times, they opined.
“This will prevent charging interest on interest or give a relief on part of the interest instead of penalising the very sector that needs to be safeguarded.
Banks should agree to the repayment proposals given by the hotels as this proposal has been given considering the current cash flows of the properties considering the current market conditions,” they pointed out.
Colombo (LNW): The governments of both India and Sri Lanka are working together on fintech sector connectivity by linking Unified Payments Interface (UPI) and Lanka Pay, Indian MEDIA quoted Prime Minister Narendra Modi as announcing it recently.
PM Modi announced the plan to link UPI and Lanka Pay when he was addressing the event to launch ferry services between Nagapattinam in India and Kankesanthurai in Sri Lanka, via a video message.
Previously, PM Modi and Sri Lanka President Ranil Wickremesinghe in India signed an agreement on Unified Payments Interface (UPI) acceptance in Sri Lanka during Sri Lanka President Ranil Wickremesinghe’s two-day visit to India.
In 2022, National Payments Corporation of India (NPCI), the umbrella organisation that offers UPI services, signed an MoU with France’s fast and secure online payment system, called Lyra.
In 2023, UPI and Singapore’s PayNow signed an agreement, allowing users in either country to make cross-border transactions.
The UAE, Bhutan, and Nepal have already adopted the UPI payment system.
UPI which is run by the National Payments Corporation of India (NPCI), reported 10.56 billion transactions in September, a dip from the 10.58 billion transactions reported in August, the first time the instant payment mechanism crossed the 10 billion transaction mark
India’s Unified Payments Interface (UPI) technology will now be accepted in neighbouring Sri Lanka.
UPI payments system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
So far, France, UAE, and Singapore had partnered with India on the emerging fintech and payment solutions.
Unified Payments Interface (UPI) is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
India has emerged as one of the fastest-growing ecosystems for fintech innovation and the PM Modi-led government has been instrumental in driving the globalisation of India’s digital payment infrastructure.
A key emphasis of Indian government has been on ensuring that the benefits of UPI are not limited to India only, but other countries, too, benefit from it.
Taking into account the popularity of the UPI payment system, the Reserve Bank of India proposed to permit all inbound travellers to India to use UPI for their merchant payments while they are in the country.
To begin with, the facility will be extended to travelers from G20 countries arriving at “select international airports”.
On February 8, the RBI governor made the announcement while deliberating upon the outcome of the three-day monetary policy committee meeting.
Colombo (LNW): Group Chief Financial Officer and Head of ESG at Hayleys Group Milinda Hewagama has recently been appointed to the Board of the United Nations Global Compact Network Sri Lanka.
Hewagama, who has over 17 years of varied experience in financial roles, started at Hayleys in 2010 and progressed to Group CFO within just 13 years.
He is responsible for steering the Hayleys Group’s ESG Roadmap, known as the Hayleys Lifecode, which integrates environmental, social, and governance best practices throughout the Group’s operations.
Hewagama pursued his education at the University of Colombo, where he completed both his Bachelor of Business Administration and an MBA.
He is also a member of the Institute of Chartered Accountants of Sri Lanka.
Hewagama emphasises the need for agility in today’s CFOs and highlights the growing importance of data-driven decision-making, digitalisation, and real-time dashboards.
He believes in strong governance for ethical business management and risk mitigation.
At Hayleys, an ESG Steering Committee has been set up to ensure ESG matters are addressed.
Hewagama stresses that while pursuing larger organisational objectives, individual values and ethics shouldn’t be compromised.
Treating all employees with respect, leading with empathy, and ensuring employee well-being are crucial.
He believes that incorporating ESG into business strategies results in more resilient business models and is optimistic about collaborating with Network Sri Lanka to achieve these goals.
Colombo (LNW): The government is scrambling to save the existing fuel stocks in the country due to the uncertainty of fuel and coal supplies in the world market as a result of the escalating war situation in Gaza and ever increasing price levels, finance ministry sources said.
President Ranil Wickremesinghe has also issued directives pertaining to the matter recently, the Ceylon Petroleum Corporation (CEYPETCO) said, mentioning that it has been focusing on a better management system of currently prevailing fuel stocks in the country.
However, although no issues have currently arisen regarding the fuel stocks, the government has instructed the relevant authorities to prepare a plan in case of any crisis in the near future.
CEYPETCO further emphasized that since SINOPEC is also successfully carrying out retail operations in Sri Lanka, it will be able to maintain the fuel supply without any crisis in the future.
Nevertheless, if any crisis situation is created due to the impact of current global situation, the relevant fuel management methods will be announced after prior notification, according to the CEYPETCO.
But the coal importation is to become a challenging issue for the authorities as Sri Lanka’s current coal supply is only adequate till the end of October, a the power and energy ministry top official said adding that the island nation would need US$100 million to import more coal after the supply ran out.
In value terms, South Africa constituted the largest supplier of coal to Sri Lanka, comprising 68% of total imports. The second position in the ranking was held by Russia, with a 24% share of total imports.
Despite the west and south having heavy rainfall, the hydropower generation has increased during the last few days this month. Hydropower generation contributed 25% in August and it increased to 30% during September. In the last four days, it has reached 40%.
Therefore the Ceylon Electricity Board (CEB) has to introduce a proper energy balance with available stocks of fuel and coal by operating coal and hydro power plants sparingly.
In fact, the last quarter of 2023 was an extremely challenging period for or us,” remarked the high official of the ministry pointing out that their primary challenge was to ensure round-the-clock electricity supply in a time when the nation’s economy was teetering on the brink.
The country will have to procure 2.5 million metric tons of coal necessary for the next year, he said.
Sri Lanka produces 40 percent of its electricity by burning coal. The always breakdown Norochcholai power plant is keeping 540 MW from the National Grid.
“We generate forty percent electricity with coal, and because the rains have filled the reservoirs, the rest we produce with hydro power,” he added.
Colombo (LNW): The Election Commission has reportedly once again approached the Treasury for funds to facilitate the long delayed local council elections.
An immediate sum of Rs. 2.2 billion would suffice for activities leading up to the election, the Commission indicated, emphasising that the remaining amount can be disbursed in three instalments over the subsequent three months post-election.
Given the current favourable financial status of the country, the Election Commission is optimistic that the Treasury will provide the necessary funds to conduct the deferred local council polls.
The ferry service between Nagapattinam in India and Kankesanthurai (KKS) near Jaffna in the Northern Province of Sri Lanka commenced on October 14, 2023. The ferry was flagged-off from Nagapattinam by the Minister of Ports, Shipping and Waterways of India Shri Sarbananda Sonowal at the Port and the External Affairs Minister Dr. S. Jaishankar through video link. The ceremony was addressed by the Prime Minister Narendra Modi and President of Sri Lanka H.E. Ranil Wickremesinghe virtually. The Minister of Ports, Shipping and Aviation of the Government of Sri Lanka, Hon. Nimal Siripala de Silva also joined the event virtually.
PM addressing at the launch of ferry services between Nagapattinam, India and Kankesanthurai, Sri Lanka via video message on October 14, 2023.
2. In his address, Prime Minister Narendra Modi recalled the vision document jointly adopted during the visit of the President of Sri Lanka to India in July 2023 for economic partnership between India and Sri Lanka, with the central theme of connectivity. He highlighted that connectivity brings closer the two countries and its people. Recalling the recent launch of the India-Middle East-Europe Economic Corridor during the G20 summit in India in September 2023, Prime Minister mentioned that the people of Sri Lanka will benefit from this connectivity corridor, as multimodal connectivity between India and Sri Lanka is strengthened. He further said that both Governments are working on fin-tech connectivity by linking UPI and Lanka Pay, and for connecting the energy grids to enhance energy security. Prime Minister added that the Governments will continue to work closely to start ferry services on the traditional Rameswaram-Talaimannar sector too.
3. In his remarks, highlighting the important role of ferry services in enhancing people-to-people ties between the two countries, President Ranil Wickeremesinghe thanked the Government of India and the Shipping Corporation of India for taking steps to commence the service.
4. External Affairs Minister, Dr. S. Jaishankar underlined that the launch of ferry is an affirmation of the people-centric policies of the Government of India. The focus of GOI’s ‘Neighbourhood First’ policy is connectivity, cooperation and contacts and in the future, connectivity with Sri Lanka will be further enhanced through power grid connection, oil pipeline and setting up an economic corridor. He highlighted that establishment of air and sea connectivity, smooth processing of visas and strengthening tourism links will make the lives of common people easier.
5. Minister of Ports, Shipping and Waterways of India Shri Sarabananda Sonowal hailed the ferry launch as a historic step which will provide an efficient and cost-effective means of travel for the people of the two countries. In his remarks, Minister of Ports, Shipping and Aviation of Sri Lanka, Hon. Nimal Siripala deSilva thanked the Government of India for the assistance extended in upgradation of the KKS Harbour which will bring immense benefits to the Northern Province of Sri Lanka.
6. The high-speed ferry is operated by the Shipping Corporation of India and has a capacity of 150 passengers. The maiden journey between Nagapattinam and KKS (about 60 nm) was covered in approx. 4 hours. The passengers who arrived at KKS on the maiden ferry were welcomed at the port by the Minister of Ports, Shipping and Aviation of Sri Lanka and the Consul General of India at Jaffna, who also saw off the first batch of passengers on the return voyage.
State Finance Minister Ranjith Siyambalapitiya says there would be no new taxes in the 2024 budget: also says the focus will be on expanding the tax base & ensuring tax compliance: explains that President Wickremesinghe has recognised people can’t be further burdened by new taxes: the President has however asserted in September’23 that the Budget 2024 will contain a proposal to tax primary bond dealers.
SLPP MP & former Minister Mahindananda Aluthgamage says an increase in the salaries of public employees is likely through the 2024 budget: also says it will be possible to reach an agreement with the IMF next month: asserts that at present, there are no power cuts, gas & fuel is available, price of food has reduced, & a people-friendly environment created.
Treasury laments that most state agencies have failed to publish procurement notices on a digital portal when the cost exceeds Rs 200 mn, in keeping with the IMF guidelines, despite instructions to do so: says this measure was taken to ensure transparency & accountability under the e-Govt Procurement (e-GP) digital platform.
CB Governor Nandalal Weerasinghe urges China “to share the terms of its recent USD 4.2 bn bilateral debt deal with SL’s Ministry of Finance, with other creditors”, although the Treasury Secretary Mahinda Siriwardene is already on record that the deal struck with China is a “landmark deal”: asserts that sharing the information would ensure transparency & assure other bilateral creditors that they’re getting a comparable deal.
Stock Market sources say the delay in obtaining the 2nd tranche of the IMF programme & high interest rates in Govt securities are the reasons for the collapse of the market over the past month.
Airport and Aviation Services Chairman G A Chandrasiri says the AASL will be seeking the approval of the Cabinet to commence piling work for the BIA Terminal II project without waiting until funds are released by Japan Int’l Cooperation Agency: also says the AASL had commenced construction of certain selected works of the BIA Terminal II project about 5 months ago.
CA Sri Lanka Council Member Tishan Subasinghe elected to the Council of the Confederation of Asian and Pacific Accountants: Subasinghe was elected out of 17 contestants who vied for the 9 board positions of the Regional Accounting Organisation representing 30 accounting bodies in Asia & Pacific.
Santhan alias Suthenthiraraja, one of the 7 life convicts granted premature release in the Rajiv Gandhi assassination case, asks the SL President to help him return to SL & live with his aged mother, who he has not met during his 32 years in prison.
Minister of Agriculture Mahinda Amaraweera instructs the Police in Jaffna to arrest a group of individuals who are allegedly extorting money from farmers in the Jaffna District: the farmers have pointed out that the Police have not taken any action on these incidents so far.
Sri Lanka beats Uzbekistan by 3 sets to nil (25-14, 25-18, 25-23) to win the Central Asian Volleyball Association Men’s Volleyball Challenge Cup.
Colombo (LNW): Agriculture Minister Mahinda Amaraweera yesterday (15) directed the senior police officers in Jaffna to promptly detain a group believed to be extracting money from farmers in the Jaffna district.
During the Special Agriculture Committee meeting at the Jaffna District Secretariat, farmers expressed their concerns to the Minister, claiming that the police had not intervened with the extortion group.
A well-organised group demands money daily when they bring their produce to the Jaffna market, the farmers grieved.
They indicated that this extortion racket has been ongoing for quite some time, notably in Jaffna, Kodikammam and Sinnaveli markets.
In response, the police informed the Minister that they had not previously received any formal complaints regarding this group.
Given this revelation at the agriculture committee meeting, the Minister directed the police to deploy intelligence operatives and take swift action to apprehend the alleged extortionists.
The Northern Province Governor, PSM Charles, was also present during these discussions.
