Colombo (LNW): Showers or thundershowers will occur at times in Western and Sabaragamuwa provinces and in Galle and Matara districts, and showers or thundershowers will occur at several places in Central, Uva and Eastern provinces and in Polonnaruwa district during the evening or night, the Department of Meteorology said in its daily weather forecast today (30).
Fairly heavy showers above 50 mm are likely at some places in Eastern and Uva provinces.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain: Showers will occur at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds: Winds will be south-westerly over sea area around the island and speed will be (20-30) kmph. Wind speed may increase up to (40-45) kmph at times in the sea areasoff the coast extending from Puttalam to Kankasanthurai via Mannar and from Matara to Pottuvil via Hambantota.
State of Sea: The sea areasoff the coast extending from Puttalam to Kankasanthurai via Mannar and from Kalutara to Pottuvil via Galle and Hambantota will be fairly rough at times. The other sea area around the island will be slight to moderate.
Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Colombo (LNW): The strengthening of the Sri Lanka Rupee recently evident against the US Dollar was due to Sri Lanka’s lacking of active engagement with the international market, Leader of the National People’s Power (NPP) and the Janatha Vimukthi Peramuna (JVP) MP Anura Kumara Dissanayke said, speaking to a rally organised by the NPP in Balapitiya electorate recently.
The NPP/JVP Leader explained that Sri Lanka needs dollars to repay loans, import goods and grow the country’s foreign reserves, but at present with the Central Bank of Sri Lanka’s (CBSL) announcement of not repaying debts, the ban on several imported goods slashing the import cost and the CBSL not purchasing dollars to maintain the reserves, neither of the aforementioned key purposes meets its outcome.
Sri Lanka was not engaging with the international market, and the outcome of which is the piling of excess dollars in the Sri Lankans banks, hence the indication that the US Dollar is continuously dropping against the Sri Lankan Rupee, Dissanayake emphasised.
In the backdrop, despite the Sri Lanka Rupee being virtually strengthened, the island’s economy will further shrink, and the public’s suffering will only increase in the future, the MP warned.
The NPP Leader urged the public not to be deceived by the ‘fabricated economy’ offered by President Ranil Wickremesinghe, who believes it to be the only solution gain the public’s trust.
During a press conference, MP Harsha de Silva addressed the challenges faced by Sri Lanka’s textile & apparel export sector. With a significant year-on-year decline of 17% in April, the industry has been severely impacted. De Silva emphasized the crucial role the textile & apparel industry played during the economic crisis, lending crucial support to keep the country afloat and providing employment opportunities to hundreds of thousands of people.
Key Points Discussed:
Decreased Global Demand: The COVID-19 pandemic has led to a decrease in global demand for clothing, resulting in domestic wardrobe inventory build-up. This reduction in demand has affected the textile industry, particularly as big brands, anticipating a post-COVID surge, now face inventory build-up in their warehouses.
Factory Closures and Competitive Environment: As a consequence of the challenging market conditions, several factories have closed down, and others have been forced to place their workers on furlough. The competitive landscape in the textile industry has intensified as brands dictate cheaper prices, turning it into an auction-like scenario among countries in the region.
Long-term Outlook and Government Initiatives: De Silva stressed the importance of protecting the vital textile industry, as the problem is expected to persist for another 6-12 months. He urged the government to take immediate action, including a reevaluation and amendment of the 30% taxes on exports to alleviate the financial burden faced by exporters.
Tapping into the Indian Market: De Silva highlighted the significant increase in spending power among Indians, particularly in states like Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, and Kerala. He called for measures to attract India’s growing middle class and suggested renegotiating the existing Free Trade Agreement to remove barriers that restrict exports above $8 million.
Seizing Opportunities from Shifting Investments: With corporations and foreign direct investments moving out of China and relocating to countries like Vietnam, Singapore, and India, De Silva urged the government to establish mechanisms similar to India to attract these investments. This would provide opportunities for the textile industry to grow and flourish.
De Silva’s urgent call to action underlines the importance of supporting Sri Lanka’s textile &apparel export sector during these challenging times. By implementing the proposed measures, the government can mitigate the impact of the crisis, revitalize the industry, and position Sri Lanka for long-term growth and sustainability.
The Embassy of Sri Lanka in Brussels, together with the Circle Royal Gaulois and the Diplomatic Club of Belgium, hosted a tourism promotion event titled “A Glimpse of Sri Lanka”, on May 24, 2023, at the prestige Club of the Circle Royal Gaulois in Brussels. The purpose of the event was to present Sri Lanka’s comeback story in the context of an economic resurgence towards socio-economic prosperity as well as Sri Lanka as a natural destination for tourism. The Embassy of Sri Lanka has been regularly hosting tourism promotion workshops in several regions in Belgium targeting French and Flemish tour and travel industry stakeholders, and the event hosted at the Club of Royal Gaulois was the first event that directly approached potential customers.
Ambassador Grace Asirwatham presented the background leading to the unprecedented economic situation in Sri Lanka and the measures taken and reforms introduced to achieve economic prosperity together with the International Monetary Fund (IMF), the World Bank, the Asian Development Bank, and creditors, which resulted in reaching an agreement with the IMF on Extended Credit Facility. The Ambassador remarked that Sri Lanka has time and again proven to be a resilient country and emphasized that Sri Lanka has already set a path to pursue a novel economic model that was competitive, open, green, and digital, as well as socially just, with a focus on the export market that will elevate Sri Lanka’s economy to new heights and foster continued growth and prosperity. To this effect, the Ambassador sought the support of the international community to make this goal a reality.
The event was centered on explaining and presenting a long list of reasons why one should visit Sri Lanka. Ambassador Asirwatham introduced Sri Lanka as a mesmerizing island that was blessed with a diverse landscape ranging from lush green tropical forests to highlands, arid plains, waterfalls, and pristine sandy beaches, as well as vibrant biodiversity, exotic wildlife, rich cultural heritage, authentic food, adventure and sports, accommodation, festivals, unique climate zones, etc. The Ambassador highlighted that Sri Lanka has tourism products for everyone.
The event also provided a platform to showcase Sri Lanka’s traditional performing arts influenced by its rich Sinhala and Tamil cultures, which included a ‘Pooja’ dance with Sri Lankan ritual music and dancing and a Sri Lankan traditional folk dance choreographed and performed by Sri Lankan dancers based in Belgium. A Tamil oriental classical dance act of ‘Bharatanatyam,” based on Hindu philosophy, traditions, and culture was performed by students from the school of Bharatanatyam in Antwerp, Belgium. These cultural performances amused the audience, adding vivid colour to the evening.
The event was also addressed by Charles Bois d’Enghien, Administrator of the Circle Royal Gaulois, and Thierry Dumoulin, Vice President of the Diplomatic Club of Belgium. They remarked that the evening with the theme “a glimpse of Sri Lanka” was one of the finest in terms of outreach and wished Sri Lanka every success in its efforts to revive tourism and reach the desired targets.
The evening that offered “A Glimpse of Sri Lanka” was attended by over 130 guests, including members of the European Parliament, EU officials, Belgium government officials, members of the prestige Circle Royal Gaulois and the Diplomatic Club of Belgium, business leaders, journalists, tour and travel professionals, bloggers, representatives of travel magazines and airlines, and diplomats.
Colombo (LNW): McLarens Holdings Limited has responded to certain media reports claiming an affiliation with the fuel oil distributor SINOPEC, which has recently entered a contract agreement with Sri Lanka for the objective of speed-running fuel distribution in the island, stating that they are false.
In a statement, McLarens Group emphasised that it does not act as agent for SINOPEC fuel sales operations, thereby clarifying that neither McLarens group, nor its subsidiaries are agents for SINOPEC, nor have they been awarded any concessions for fuel shed operations.
Meanwhile, Interocean Lubricants (Pvt) Ltd. also clarified regarding the media reports, stating that SINOPEC Brand Lubricants has been in Sri Lanka since 2012 in the business areas of automotive and industrial lubricants, and Interocean Lubricant (Pvt) Ltd. was appointed by SINOPEC as the authorised distributor in Sri Lanka for SINOPEC Lubricants since 2012 by Lubricant company “SINOPEC Corporation China.”
Debunking media speculations, Interocean stressed that the domestic fuel station concession was awarded to SINOPEC Fuel Oil Corporation China after a comprehensive “request for proposal” (RFP) process where SINOPEC Fuel Oil Corporation China has directly bid for this tender. No local party, accordingly, has acted as its agents for the bidding process, nor has SINOPEC China appointed any local party as its agents consequent to the awarding, the company added.
Previously, SINOPEC itself categorically denied similar media speculations suggesting the company procuring agencies to manage certain aspects of its operations in Sri Lanka, stating that they are false.
Colombo (LNW): Ven. Rajangane Saddhatissa Thero who was arrested early this morning on the allegation of making statements disrupting religious harmony has been remanded till June 07, 2023.
This was when the Thera was produced before the Fort Magistrate Court today (29).
The arrest was made based on a complaint lodged by Ven. Pahiyangoda Ananda Sagara Thero.
Ven. Rajangane Saddhatissa Thero came to fame on Social Media with his continuous criticism against the government.
Colombo (LNW): The Sri Lankan Rupee indicates a significant appreciation against the US Dollar at leading commercial banks today (29).
People’s Bank reveals in its exchange rates that the buying price of the US Dollar had dropped to Rs. 287.09 from Rs. 292.93, and the selling price to Rs. 302.53 from Rs. 308.68.
Commercial Bank reveals the buying price of the US Dollar has dropped to Rs. 287.03 from Rs. 292.74, and the selling price to Rs. 300 from Rs. 305.
At Sampath Bank, the buying price of the US Dollar has dropped to Rs. 290 from Rs. 295, and the selling price to Rs. 302 from Rs. 307.
PMD: President Ranil Wickremesinghe presented a momentous proclamation to the Mahavihara Vamsika Shyamopali Maha Nikaya Asgiri Vihara Senior Karaka Sangha Sabhika, Most Venerable Urulewatte Sri Dhammarakkhitha Thera, designating the historic Mahiyangana sacred site as an officially recognized place of worship.
As the first Executive President of independent Sri Lanka to have visited the Mahiyangana sacred site, President Wickremesinghe participate in its restoration work last afternoon (28), a momentous occasion that received blessings from the esteemed Chief Incumbent, Urulewatte Dhammasiddhi Thera.
During his visit, President Wickremesinghe placed flowers at the Chaitya and engaged in religious rituals. Furthermore, he unveiled a commemorative plaque honouring the unveiling of a magnificent 102-foot Buddha statue situated in the middle of the Villuva Lake. This awe-inspiring creation was brought to life by the “Meth Saviya Mind Education, Compassion Society,” led by the esteemed founder of Meth Saviya, Astronomer and Professor of Physics at the University of Colombo, Mr. Chandana Jayaratne.
Expressing their gratitude, the Chief Incumbent of the Mahiyangana Rajamaha Viharaya, Urulewatte Dhammarakkhitha Thera, presented President Wickremesinghe with a memento. In his welcome address at the Punya Mahotsava, Urulewatte Dhammarakkhitha Thera highlighted the historical significance of President Wickremesinghe’s efforts in renovating the Mahiyangana sacred site. He emphasized that while two kings, Dutugemunu and Vijayabahu I, and Prime Minister D.S. Senanayake had previously initiated renovations, President Wickremesinghe was the sole executive president who took the initiative to restore this revered location.
Urulewatte Dhammarakkhitha Thera further acknowledged President Wickremesinghe’s role in officially designating the Mahiyangana shrine as a place of worship. Until that moment, the shrine had only been gazetted as a sacred city.
The event was graced by the presence of notable dignitaries, including Most Ven. Warakagoda Gnanarathana Maha Nayaka Thera, the Mahanayaka of the Asgiri Chapter, Shyamopali sect; the head of the historic Badulu Muthiyangana Rajamaha Viharaya; the Anunayaka of the Malwatu Maha Viharaya, Aggamaha Pandita, Most Ven. Dr. Niyangoda Wijithasiri Anunayaka; the Venerable Anamaduwe Dhammadassi Anu Nayaka of the Asgiri Maha Viharaya; and the Malwathu-Asgiri Ubhaya Maha Vihara Anu Nayaka Thera.
Other notable attendees included Opposition Leader Sajith Premadasa, ministers Wijayadasa Rajapaksha, Nimal Siripala de Silva, Vidura Wickramanayake, and Minister of State Tenuka Vidanagamage. Senior Presidential Adviser on National Security and Chief of Presidential Staff Sagala Ratnayake, Uva Provincial Governor A.J.M. Muzamil, Vietnamese Ambassador to Sri Lanka Mrs. Ho Thi Thanh Truc, tribal leader Uruvarige Vannilatto, Diyawadana Nilame of the Dalada Maligawa Pradeep Nilanga Dela, Chief of Defence Staff General Shavendra Silva, Inspector General of Police Mr. C.D. Wickramaratne and a group of invited guests including representatives of the security forces.
ECONOMYNEXT – Manila-based Asian Development Bank said it had approved a 350 million US dollar budget support loan for Sri Lanka as part of a stabilization program with the International Monetary Fund.
The ABD is supporting a series of policy reforms which are required to stabilize the economy and will then spur growth.
Budget support loans ease cashflows of the government and does not involve imports of goods unlike project loans.
Budget support also known as policy or program loans will eventually be repaid from higher growth coming from the linked reforms.
In 2023 there is a strong focus on stabilization after two year of money printing led to a collapse of the rupee and rise in poverty.
“ADB is concerned about the deep crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women,” said ADB President Masatsugu Asakawa.
“ADB is committed to standing with Sri Lanka as it addresses its present challenges and strides toward economic stabilization, sustainable recovery, and inclusive growth.”
The ADB is estimated to provide around 2.0 billion US dollar through a series of policy loans through the life of the IMF program, supporting structural benchmarks with a strong focus on stability in the first year.
“Sri Lanka has embarked on bold reforms to address the causes of both internal and external imbalances and return to a sustainable debt trajectory,” the ADB said in a statement.
“The country faces a long road to recovery and must remain steadfast in the implementation of necessary reforms,…”
The reforms including enhancing tax revenue collection, strengthening public financial management, improving performance of state-owned enterprises, ensuring autonomy and independence of the central bank, safeguarding financial sector stability, and bolstering governance frameworks.
“As these measures are implemented, it is essential to ensure that adequate social protection is provided. Implementing governance reforms and anticorruption measures will be critical.”
Colombo (LNW): Sri Lanka has missed the first quarter revenue target of Rs 782 billion due to inefficient tax collection procedure of the Inland Revenue Department (IRD) Senior government minister claimed.
State Minister of Finance Ranjith Siyamablapitiya noted that the IRD has actually collected Rs 316 IN 1Q 2023 making shock waves for IMF representatives who visited the island nation recently.
According to finance ministry estimate, the expected revenue in 2023 is Rs. 3415 billion its major portion of tax revenue is Rs. 3130 .
This clearly indicates that the government is receiving only Rs 500 billion from all other means including the treasury contributions from SOEs to the consolidated fund.
The million dollar question is as to how the government is to bridge the massive deficit of 60 percent of the country’s revenue in 1Q 2023 as it has collected only 40 percent of the targeted revenue.
State Minister of Finance Ranjith Siyambalapitiya told Parliament that despite projections the Government would fall short of its excise revenue target by 30% there will be revision to the tax on alcohol products.
Siyambalapitiya told the house that following the price increase in January with new excise tax by over 20%, excise revenue from alcohol sales had dropped 7.4%. March, which is usually a high volume month, had seen a dip in production this year of almost 40%.
The State Minister said it is anticipated that some products can maintain volumes despite price increases, and alcohol had been listed as one of them, but the recent events had proven this theory wrong.
He also noted that whilst it is good to reduce alcohol consumption, it has been observed that consumers have turned to cheaper illegal alternatives, and therefore a discussion has begun on finding ways to tackle this problem, without reducing prices.
He noted that in the current situation the Government has lost revenue, but consumers continue to drink unregulated products that can pose further burdens to the economy.
The Minister said prices of all goods have increased according to inflation and the Government has no intention to provide any exceptions to the alcohol industry.
