Colombo (LNW): Agriculture and Plantation Industries Minister Mahinda Amaraweera proposed a Cabinet Paper aimed at slashing the cost of Muriate of Potash (MOP) fertiliser by 50 percent.
Currently, state-owned fertiliser companies have 28,600 metric tons of MOP fertiliser in their warehouses.
Dr. Jagath Perera, Chairman of government-owned fertiliser companies, emphasised that reducing the price of MOP fertiliser would lead to a 50 percent cost reduction.
The Cabinet Paper, outlining this reduction, has been submitted for approval to the President.
Minister Mahinda Amaraweera made this announcement on the 5th while commencing the development of the Walasmulla Omara village as the second stage of an agribusiness village.
Colombo (LNW): President Ranil Wickremesinghe praised CEAT-Kelani Tyres for its remarkable journey from a State-owned enterprise (SOE) to a symbol of successful privatisation.
Speaking at it in a momentous event marking 25 years of business excellence, Wickremesinghe reminisced about the challenging birth of Kelani Tyres and the pivotal role it played in Sri Lanka’s history.
He paid a tribute to CEAT-Kelani Tyres Chairman Chanaka de Silva’s tireless efforts to bring the company to present stauus overcommig challenges which was his forte from his school days at Royal College as the fiery opening bolwer memarsed schll boy cricketers in 1960s.
Royal had a devastating combination of fast bowlers, (Darrel) Lieversz and (Chanaka) De Silva. They managed to bundle out the Peterites for 42 and 38 runs at Reid Avenue.
At that time Royal also beat Ananda, another start-studded side bowling them out, and they had to get only 82 runs to win and we managed to bowl them out for 76 runs.
“Kelani Tyres was situated in Kelaniya, adjacent to Biyagama, which falls within my electorate. When I assumed the role of Minister of Industries, I recognised the need to close this facility. Kelani Tyres had earned its reputation,” he stated.
He highlighted the tough decisions and battles faced in the process of privatising the company.
“A decision was reached to sell off Kelani Tyres. We initiated the standard process and requested bids. Chanaka was the initial bidder, but for reasons unknown, President Premadasa did not favour it.
This scenario repeated twice, with Chanaka de Silva , being the primary bidder each time, yet he remained unsatisfied. I finally said, ‘Sir, I cannot continue to provide reasons.’
The situation remained the same on the third attempt. At this juncture, we had to make a decision, one that would determine whether we were selecting the best bid or favouring industry giants.”
The President also spoke about the establishment of CEAT in Sri Lanka, a collaboration that became a reality in 1993.
“The next stage involved CEAT and Kelani uniting, a partnership forged in Balapitiya. The Silva’s and the Soysa’s decided to join forces, a decision with its own interesting history.
Chanaka’s father Aarti, in the early 60s, was a member of the SLFP, representing C.P. De Silva. Ajit’s father and Tilak’s father were members of the UNP and part of our working committee.
In 1965, when Mrs. Bandaranaike decided to acquire Lake House Press, my father was the Managing Director.
Ajit’s father and Chanaka’s father collaborated, brought Bandaranaike down and made Dudley Senanayake the Prime Minister in the 1965 election. So that is how our connections go back. In the process, Mahinda’s father lost the election. Regardless, the two companies joined forces and today, we celebrate their 25th anniversary.”
The President recognised CEAT-Kelani as a model of Indo-Lanka cooperation, serving as an example for those seeking to enter the Sri Lankan market.
“This partnership exemplifies successful Indo-Lanka cooperation, serving as a model for those considering entering the Sri Lankan market,” he commented.
CEAT Kelani Holdings manufactures nearly half of Sri Lanka’s pneumatic tyre requirements and exports about 20% of its production to 16 countries in South Asia, the Middle East, Africa and the Far East.
Colombo (LNW): The United States District Court has granted Sri Lanka’s request for a six-month halt on Hamilton Reserve Bank’s (HRB) lawsuit against the country, US media reports said.
HRB has filed a case against Sri Lanka over the 2022 defaulted sovereign bond, claiming that the St Kitt’s-based bank has accumulated a big portion of the defaulted bond, and calling for immediate repayment.
Sri Lanka filed a cross-motion to stay the proceeding to facilitate the restructuring of its external debt, which had garnered support from the country’s bilateral creditors.
In an earlier instance, the United States government wrote the trial judge informing its decision to intervene in the case, and asked the court to reserve the decision on the motion to stay until it had an opportunity to submit a statement of interest.
In her ruling on November 2, Judge Denise Cote suggested that a stay order would not substantially harm HRB’s interests.
“The Court recognises that a stay will prejudice the plaintiff’s ability to obtain a prompt judgement.
The requested stay, however, is not indefinite. Sri Lanka seeks a six-month stay of this litigation while it conducts sovereign debt restructuring negotiations with sovereign and commercial creditors.
Moreover, if Hamilton prevails on its claim at some future date, any judgement will be subject to pre-judgement interest. Accordingly, the prejudice to the plaintiff is limited,” the judgement read.
“A judgement for Hamilton would provide an incentive to other bondholders to engage in line-jumping litigation and deter commercial creditors from participating in the restructuring negotiations.
A breakdown in restructuring negotiations could threaten Sri Lanka’s progress towards these IMF targets, its economic recovery, and the well-being of its citizenry,” the judgement further said.
Meanwhile, FT.COM, which has been closely following the case, said it appears that HRB does not control enough of the bond in question to block the use of collective action clauses.
Earlier, HRB claimed to possess US$ 250 million of the bond in question. The bond’s clauses state that if 75 percent of holders agree to a restructuring deal, it becomes binding on all. With US$ 250 million, HRB can block any deal it disagrees with.
However, according to the recent judgement, HRB claims that Sri Lanka owes them US$ 243 million in principal, which might not give them a blocking stake.
Colombo (LNW): Chairman of the committee of public Finance (COPF), Dr. Harsha de Silva MP has addressed critical issues, starting with the pressing need for tax reform.
He highlighted that tax revenue currently stands at only 8% of GDP, a stark contrast to the 20% it once represented during President Premadasa’s time. Dr Harsha emphasized the importance of revenue rationalization while ensuring fairness in the tax system.
He made these observations at a recent event, titled “Insights with Harsha: Smart Policies & Economic Revival,” which has brought to light key policy discussions essential for Sri Lanka’s economic revitalization.
He also touched upon the topic of demonetization, drawing on India’s experience. He acknowledged both advantages and disadvantages but underscored the potential for transitioning towards a cashless and digital society through the adoption of e-wallets and digital identification systems like Aadhar.
He highlighted that achieving a cashless society should rely on regulation and incentives rather than abrupt demonetization, driving Sri Lanka into a more digitized future.
Another vital issue raised during the event was the adoption of cost-based tariffs or cost-reflective pricing. Harsha noted that this approach reduces government expenditure that would otherwise be used to support loss-making enterprises.
He cited an example of the recent need for Rs 231.5 billion to cover payments to CPC for fuel, illustrating how mispricing can place a burden on taxpayers.
The event also emphasized the need for reforms with a focus on empathy. Harsha’s vision is to instill hope in the youth by demonstrating that meaningful reforms can pave the way for a brighter future. He stressed the importance of committed leaders who understand the challenges faced by the younger generation.
A notable point raised during the event was the need for Sri Lanka to invest in skills development, similar to the successful approach in Tamil Nadu.
Dr. Harsha emphasized that to propel the nation forward, the workforce must be equipped with the right skills.
Tamil Nadu’s 550 engineering schools at various levels produce the talent required by various industries, helping the state aspire to achieve a trillion-dollar GDP by 2030. This underscores the importance of nurturing a skilled labor force.
Audience questions covered various topics, including demonetization, VAT increases, the brain drain, and the development of skilled labor. Harsha’s responses highlighted the need for growth, trade, and investment policy reforms, as well as technology adoption to drive total factor productivity.
Colombo (LNW): The government has been urged to implement an incentive scheme with necessary guidelines to import electric vehicles for tourist transportation sector to popularise Sri Lanka ‘a commitment towards creating “green country’’.
Electric vehicle (EV) permit scheme for tourist transportation sector will enable the island nation to earn much needed foreign exchange by promoting here country concept and attracting more tourists who value this perception.
The Tourism Ministry could allow tourist transporters to import electrical vehicles as part of its measures to provide benefits to persons involved in this sector.
The Ministry of Tourism has been urged to grant import permits for electric vehicles as an innovative approach to increase remittances and its positive impact on the environment.
Time is opportune for Sri Lanka Tourism Development Authority (SLTDA) to showcase the seriousness of the government’s commitment to reducing greenhouse gas emissions by deploying electric vehicles (EVs) for tourist transportation, says Ranjith Sudasingha, VicePresident of the Chauffeur Tourist Guide Lecturers’ Association.
“One notable way SLTDA can showcase its true commitment to the abovecause is by helping our members to get EVs best suited for road trips taken by foreign visitors during their holiday in the country.
By actively participating in the Environmental and Social Governance (ESG) goals, SLTDA can demonstrate its leadership in addressing environmental challenges and meeting the expectations of eco-conscious foreign visitors who want to travel in environmentally-friendly vehicles because of the positive impact it has on the environment.”
However, if SLTDA is truly interested in boosting tourism revenue and thereby increase foreign inflows to the country, it needs to take the green tourist transportation initiative seriously and find a smart way to mobilize the funds.”
He points out that climate finance provided by Multilateral Development Banks (MDBs) is a key source that SLTDA can tap into. He cites MDBs such as the World Bank, ADB, European Investment Bank (EIB) and the Asian Infrastructure Investment Bank.
Asian Infrastructure Investment Bank (AIIB) whose global climate finance exceeded $98 billion in 2022 for low-income and middle-income economies.
He said “Therefore, SLTDA should be able to tap those funds and help us get EVs through soft loans at a concessional duty rate in order to facilitate emission-free tourist transportation.”
“Today’s discerning tourists want to see us treat Mother Nature with the respect she deserves. Nevertheless a large portion of tourist transportation comes from quite old fossil-fuel-powered vehicles and EV charging points are few and far between.
This is concerning to the tourists due to its contribution to pollution and global warming. Tourists not only want to stay in green hotels but also want to see green travel integrated into the key elements of sustainable tourism, he claimed.
“Currently, our Association members are paid lower than what three-wheelerscharge per kilometer. This is a pathetic situation given our running costs, he pointed out.
The Destination Management Companies (DMCs) give attractive rental rates for tourists to stay competitive in the business. We have to suffer that loss in silence.
If the authorities can help us get duty-free EVs through soft loans arranged with the MDBs, it will derive four direct benefits.. It will help contribute to Sri Lanka’s emission goals for our planet. Tourists will identify Sri Lanka Tourism as a truly environmentally-conscious brand and tourist arrivals will grow significantly.
Colombo (LNW): The MPs accused of being involved in the recent alleged assault on State Minister Diana Gamage outside the Chambers will appear before the committee appointed by Speaker Mahinda Yapa Abeywardena for an inquiry today (06).
Deputy Speaker Ajith Rajapaksa, who chairs the committee, announced that statements will be obtained from State Minister Diana Gamage, as well as MPs Rohana Bandara and Sujith Sanjaya Perera.
State Minister Piyal Nishantha De Silva, who was in the vicinity during the incident, has also been summoned by the committee.
Other members of the committee include Chamal Rajapaksa, Gayantha Karunatilleka, Imthiaz Bakeer Markar, and Ramesh Pathirana.
Colombo (LNW): Sports Minister Roshan Ranasinghe has issued a gazette regarding the suspension of the registration of Sri Lanka Cricket, the National Association of Sport of Cricket.
This decision has been made under the authority granted to him by Section 32 of the Sports Law No. 25 of 1973.
The suspension is effective from the 5th of November 2023 and is a response to allegations of corruption, malpractices, irregularities, misconduct, and the organisation’s failure to fulfil its duties and responsibilities.
The suspension is deemed necessary to facilitate an independent, transparent, and trustworthy inquiry into these matters and to implement necessary remedial actions.
Furthermore, Ranasinghe, as the Minister in charge, has invoked his authority under Section 33 of the Sri Lanka Sports Law No. 25 of 1973 to appoint an Interim Committee.
This committee comprises the following members and is tasked with assuming the powers, functions, and duties of Sri Lanka Cricket, the National Association of Sport of Cricket, until an election is conducted or until further notice is issued.
The interim board is responsible for ensuring the effective operation of Sri Lanka Cricket and is mandated to:
Investigate and take appropriate action regarding the recommendations outlined in the Audit Report dated 11th September 2023 issued by the Auditor General.
Carry out the powers, functions, and duties of Sri Lanka Cricket in a suitable manner until remedial actions are taken through independent, transparent, and trustworthy inquiries by the Interim Committee.
Formulate recommendations and strategic measures to prevent the recurrence of corruption, malpractices, irregularities, misconduct, and the failures detailed in the aforementioned Audit Report by the Auditor General.
Colombo (LNW): The 11 Sri Lankan citizens who had been stranded in the Gaza Strip following the October 7 attack by Hamas terrorists on Israel have successfully returned to their home country.
They arrived in Sri Lanka on Sunday, the 5th of November, via a flight from Doha, Qatar, after departing through the Rafah border crossing into Egypt.
Among the group, two were adult women, while the remaining nine were children.
The Sri Lankan representative office in Palestine reported that the group had initially arrived in Egypt on the 3rd of November.
Bennett Cooray, the head of the office, confirmed that they entered Egypt through the Rafah border crossing and stayed at a hotel in the country.
Initially, 17 Sri Lankans were stranded in the Gaza Strip as a result of the conflict between Israel and Hamas. However, four of them were unable to leave their location due to ongoing security concerns in the area.
Wounded Palestinians and foreign nationals began their journey back to Egypt from the Gaza Strip through the Rafah border crossing on the 1st of November, marking the first such return since the escalation of the Israel-Hamas conflict in early October.
Colombo (LNW): Urban Development and Housing Minister Prasanna Ranatunga has instructed the Urban Development Authority to return Viharamahadevi Park to the Colombo Municipal Council.
The move is in accordance with Section 50 of the Urban Development Authority Act, which allows for the return of properties taken over for development purposes.
The park had been under the Urban Development Authority for renovation since 2011.
The park was modernised as part of the Metro Colombo Urban Development Project with World Bank assistance and was reopened in 2013 with features like removing iron fences and creating a more open and barrier-free environment.
“Paris Club” informs Govt that it would delay its final proposal on SL’s debt restructuring until the agreement between the China Exim Bank and the SL Govt is disclosed; a Govt internal statement indicates that the Chinese side has not yet responded to the SL Govt’s request to allow the sharing of the confidential agreement between the two parties, with the Paris Club.
Foreign investors dump Rs.34.1 bn (USD 106mn) of SL Govt securities in 14 weeks upto November 3: foreign holdings in SL’s Treasury bills & bonds falls to Rs.148.4bn by November 3 from Rs.182.5bn on July 27: analysts say the sudden & inexplicable sharp appreciation of the LKR by the Central Bank enabled (hot-money) foreign investors to earn massive capital gains as they were able to buy Govt Securities when the LKR was at 365 & thereafter sell the Securities when the LKR appreciated to a range between 300 and 335.
Court of Appeal dismisses 3 Petitions filed by Judicial Officers Associations which sought the prevention of PAYE being applied to members of the Judiciary.
Public Security Minister Tiran Alles says he had been approached with an offer of a bribe of Rs.700mn to facilitate the transfer of Underworld Kingpin ‘Harak Kata’ to Dubai, rather than bringing him to SL on his arrest: says the person who extended the bribe to him, met with an unfortunate fate: warns that Officers in Charge of Police Stations would be held accountable for any criminal activities in their respective areas.
SriLankan Airlines & Ceylon Electricity Board to receive Rs. 238.9bn from the Treasury to settle their debts, enabling the two entities to restructure their balance sheets ahead of their divestment process: supplementary estimate of such requirement to be submitted to Parliament shortly.
Sports Minister Roshan Ranasinghe appoints an Interim Committee for Sri Lanka Cricket: Arjuna Ranatunga (Chairman), Retired Judges S I Imam, Rohini Marasinghe & Iranganie Perera, Upali Dharmadasa, Rakitha Rajapakshe & Hisham Jamaldeen.
Ceylon Electricity Board says it has suffered a loss of nearly Rs.80mn in the first 8 months of 2023 due to unlawfully altered electrical installations & electricity meters.
Colombo’s Marine Drive to be closed near the Bambalapitiya railway station till further notice due to the demolition work of the passenger flyover near the railway station: Police urge motorists to use alternative routes.
Several newly appointed Ambassadors present credentials to President Ranil Wickremesinghe: the new Ambassadors are from Latvia, Cambodia, Portugal, Suriname, Djibouti, Angola, Finland, Venezuela & Norway.
SL Cricket team cancels its training session due to the severe air pollution in the city of New Delhi: SL is scheduled to play their World Cup league match in Delhi on Monday.
