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SL manufacturing and services rebounded strongly in November

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By: Staff Writer

Colombo (LNW): Sri Lanka’s manufacturing and services have rebounded strongly recording an uptick in in November 2023 as the island nation is vow recovering from an economic crisis with the unlocking of the second tranche of US$ 3 billion IMF bail out loan, a Purchasing Managers Index compiled by the central bank showed.

The manufacturing and services sectors saw an uptick in November as per the Purchasing Managers Index (PMI) compiled by the Central Bank.

The Manufacturing PMI increased to 57 on a month-on-month basis in November 2023, driven by the seasonal factors.

The index exceeded the neutral threshold after March 2023, with a positive contribution from all the sub-indices, CBSL said.

The increases in new orders were largely driven by the manufacture of food & beverages and textiles & apparel sectors.

Moreover, the increase in production was largely due to the manufacture of food & beverages sector, owing to the seasonal demand.

Further, employment and stock of purchases also increased on a month-on-month basis in line with the improvements in new orders and production.

Moreover, Suppliers’ Delivery Time lengthened during November compared to the previous month, indicating the tightened supply conditions.

The overall expectation for the manufacturing activities remained positive for the next three months, mainly attributable to the gradual recovery in economic activities.

However, the firms are concerned about the tax revisions, which will be effective from January 2024.

CBSL said the Services sector PMI recorded an index value of 59.4 in November 2023 indicating an accelerated expansion in the services activities.

This was led by the increases observed in new businesses, business activities, employment and expectations for activity.

New businesses increased in November 2023 compared to October 2023, particularly with the increases observed in financial services, professional services and accommodation, food and beverages sub-sectors.

CBSL said the business activities continued to expand in November 2023 in line with the positive developments observed in most of the sub-sectors.

Accordingly, significant improvements were observed in business activities related to other personal activities and accommodation, food and beverage sub-sectors driven by the sharp increase in tourist arrivals.

Financial services improved further in line with the increase in credit demand following the recent reductions in policy rates.

The wholesale and retail trade sub-sector also continued to grow amid the festive season supported by the seasonal discounts offered.

Employment increased as new recruitments were made to meet the seasonal demand, whereas backlogs of work continued to decline during November.

CBSL said expectations for business activities for the next three months continued to increase in November due to festive and tourist seasons.

However, some respondents expressed their concerns regarding the amendments to Value Added Tax w.e.f. 1 January 2024.

Imported substandard stationery poses grave health risk to children: Expert

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Colombo (LNW): Substandard and cheaply imported school stationery and plastic food carriers, widely used by schoolchildren, pose severe health risks, Dr. Mahinda Wickramarachchi, Head of Quality Control Unit at Lady Ridgeway Children’s Hospital (LRH) warned.

Despite complaints, a recent study revealed that these materials contain heavy metals, endangering children’s lives.

Items such as pencils, coloring pencils, plastic water bottles, food carriers, and lunch boxes violate international standards, exposing children to hazardous chemicals.

Parents are urged to scrutinise products for compliance with safety codes, Dr. Wickramarachchi went on, emphasising the potential dangers of heavy metals and chemicals, including Bisphenol A (BPA).

“There are health standards for all these items especially an international standard called EN71-3 for children’s stationery and toys. These stationery and toys should be painted with colors that should not include any heavy metals,” he noted.

“We know when little children use these pencils they tend to put them in the mouth or bite the end, which inevitably results in hazardous chemicals or heavy metals entering their biological system,” Daily Mirror quoted the specialist.

“There is a safety code for plastic ware especially used to contain food or consumable liquids. The plastic ware is internationally standardised from 01, 02, 03, 04 and 05. The standard 05 is the one for food or water carriers and the parents should be mindful when buying their children’s water bottles to check for this figure under the container,” he added.

“The plastic ware contains a very hazardous chemical called Bisphenol A (BPA), that could even cause cancerous cells in children over time. Therefore, the parents should be concerned about these health facts, when buying stationery items for their children’s next school season,” Dr. Wickramarachchi pointed out.

Massive island-wide operation nets 2,121 suspects, seizes significant drug haul

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Colombo (LNW): A total of 2,121 suspects were apprehended in the past 24 hours, in an island-wide operation initiated on the directives of Acting Inspector General of Police (IGP) Deshabandu Thennakoon.

The operation, targeting drug trafficking and organised crime, involved coordinated efforts from the Police, Special Task Force (STF), and armed forces across 45 police divisions.

During this operation, law enforcement recovered significant quantities of illicit substances, including 2 kilograms and 232 grams of heroin, 178 kilograms of cannabis, 769 grams of Ice drugs, 35 kilograms of Ash, 626 grmas of Mawa, 30,550 cannabis plants, and 3,489 narcotic pills.

Among the 2,121 individuals detained, 12 are under investigation under detention orders, and 116 are on the IRC list of the Police Narcotics Bureau.

Furthermore, asset investigations have been initiated for 5 suspects, and 133 individuals have been referred for rehabilitation as part of this comprehensive effort to combat drug-related activities and organised crime.

The operation is being overseen and coordinated by Deputy Inspectors General of Police in charge of all nine provinces.

Dollar rate at commercial banks today (Dec 18)

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Colombo (LNW): The Sri Lankan Rupee (LKR) happens to be largely steady against the US Dollar today (18) in comparison to last week’s Friday, as per the exchange rates of leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar remains unchanged at Rs. 321.18, and the selling price has increased to Rs. 332.38 from Rs. 332.12.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 319.75 from Rs. 320.37, and the selling price has increased to Rs. 330.75 from Rs. 330.50.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 322 and Rs. 331, respectively.

Sri Lanka Original Narrative Summary: 18/12

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  1. State Finance Minister Shehan Semasinghe says the Inland Revenue Dept will start a mobile service to reach people to open tax files to meet the 2024 revenue target committed to the IMF: aim is to boost tax revenue by a massive 47% in 2024 to Rs.3.82 trn.
  2. President Ranil Wickremesinghe and Govt express joy after the IMF approved the 2nd tranche of the loan amounting to USD 337mn: so far, in the 21 months since reaching out to the IMF, SL has received USD 670 mn: in contrast, in the 18 months before seeking an IMF programme, SL had received USD 4,950mn from bilateral creditors.
  3. Judicial Service Commission decides to transfer 54 judicial officers, including judges, district judges & magistrates with effect from 1st Jan’24: JSC Secretary H S Somaratne issues transfer orders based on service requirements for annual rotations.
  4. Minister of Public Security Tiran Alles says more than 83 drug racketeers, including 45 wanted suspects, have been arrested so far during a special operation.
  5. Veteran cartoonist and creator of the newspaper cartoon character ‘Gajaman’, Camillus Perera, 84, passes away.
  6. Health Ministry laboratory reports disclose that there were no detectable levels of immunoglobulin in the counterfeit human immunoglobulin consignment purchased and paid for by the Ministry: reports also reveal that the medication was not sterile and contained bacterial endotoxins.
  7. SJB MP & “Economic Guru” Harsha de Silva says all parties & politicians need to stop deceiving people with “fairytales” and that 2024 will be a difficult year for the country: Silva has been at the fore-front in calling for a tough IMF programme, floating the currency, increasing taxes, increasing interest rates, & announcing a “Debt default” by the Govt, which have all led to major hardships being heaped on people.
  8. SJB leader Sajith Premadasa vows neither he nor anyone in his party would join any future political alliance which is to be led by President Ranil Wickremesinghe.
  9. Govt mulls a moratorium on granting diplomatic permission for foreign marine scientific research vessels in 2024 & beyond: previously, SL had issued a Standard Operational Procedure to grant “diplomatic approval” for foreign warships, aircraft and research vessels to traverse SL waters, airspace, and to call at local ports.
  10. Top SL all-rounder Wanindu Hasaranga likely to be an attractive “buy” at the IPL auction after being excluded by IPL team Royal Challengers Bangalore: cricket watchers say several other IPL teams could very well bid for Hasaranga’s services because of his ability to bat in the middle-order and his lethal variations in bowling.

BREAKING!: Dhammika Perera is SLPP’s Presidential Candidate

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Colombo (LNW): It has been decided that MP Dhammika Perera will be presented as the candidate of the Sri Lanka Podujana Peramuna (SLPP) in the upcoming presidential election.

Perera, a prominent figure in the Sri Lankan business sector, holds significant investments domestically and internationally, showcasing expertise across various economic fields.

Unlike other potential candidates, Perera stands out by presenting a comprehensive action plan with specific and practical measures to boost Sri Lanka’s economy.

Having previously served as the Secretary of the Ministry of Transport and as the Minister of Investment Promotion, Perera brings valuable experience to the table.

Notably, he has actively contributed to education through the ‘DP Education’ initiative, impacting over 1.5 million school children in Sri Lanka. The initiative, launched in 2019, includes the DP Education IT Campus, commenced in 2023, with the ambitious goal of creating one million jobs in the information technology sector.

The campus programme is currently providing job-oriented computer language education to over 200,000 students.

High Commissioner Baglay relinquished charge

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High Commissioner H.E Gopal Baglay relinquished charge as Government of India’s Head of Mission to Sri Lanka on 15 December 2023 and has been named as the next High Commissioner of India to Australia. 

2. High Commissioner H.E Gopal Baglay assumed charge in Sri Lanka in May 2020 and his term as India’s top diplomat in the country witnessed several unmatched milestones in the bilateral partnership. He was instrumental in realizing several crowning achievements in India-Sri Lanka ties. 

3. Among the key highlights of his term was the multi-pronged assistance worth USD 4 billion, in response to the economic challenges in Sri Lanka in 2022. Signing of Modalities Agreement for the possession, development and use of Trincomalee Tank Farms and Joint Venture between CPC & LIOC in January 2022 also deserve a special mention. Under his watch, India supplied more than 25 tons of medicines, Made in India Covid vaccine, Rapid Antigen Test kits, Liquid Medical Oxygen, to Sri Lanka to tide over COVID-19 pandemic. Further, Indian Naval and Air Force assets were deployed specially for expediting humanitarian supplies to Sri Lanka during this period. 

4. The economic and commercial engagement between the two countries got a major boost during his tenure. There have been multiple bilateral MoUs including for cooperation in renewable energy, for intergrid connection, for development of Trincomalee, for UPI-application acceptance & digital payments, utilization of INR- denominated trade settlements. India has also emerged to be the largest trading partner of Sri Lanka. While development partnership featured landmark projects such as the Sri Lanka Unique Digital Identity Project, generational linkages in Buddhism were reinforced through numerous noble initiatives such as the USD 15 million grant assistance for the promotion Buddhist ties, inaugural international flight from Sri Lanka to the sacred city of Kushinagar in October 2021, carrying almost 100 monks. Various dimensions of connectivity also deepened such as the resumption of Chennai-Jaffna flights and recommencement of ferry services. 

5. Mr. Santosh Jha shall be assuming charge as the next High Commissioner of India. Mr. Jha is currently serving as India’s Ambassador to Belgium, Luxembourg and the European Union. In a career spanning more than 30 years, Mr. Jha has served in diverse capacities in several countries and New Delhi including as Counsellor in High Commission of India, Colombo during 2007-2010. 

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Colombo
16 December 2023

Today’s (Dec 18) weather: Showers to follow a continuous routine; misty conditions expected

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By: Isuru Parakrama

Colombo (LNW): Showers will occur at times in Northern, North-central, Eastern and Uva provinces, with several spells of showers being expected in the Hambantota district too, the Department of Meteorology said in its daily weather forecast today (18).

Showers or thundershowers will occur at several places in other areas of the island after 1.00 p.m, the statement went on, adding that fairly heavy showers above 75 mm are likely at some places in Western, Sabaragamuwa, Central and North-western provinces and in Galle and Matara districts.

Misty condition can be expected at some places in Western, Sabaragamuwa, Central and Southern provinces in the morning.

The 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 or thundershowers will occur at times in the sea areas off the coast extending from Puttalam to Trincomalee via Mannar and Kankasanthurai. Showers or thundershowers will occur at several places in the other sea areas around the island.
Winds:
Winds will be South-easterly to Easterly and wind speed will be (25-35) kmph. Wind speed may increase up to (40-50) kmph in the sea areas off the coast extending from Puttalam to Trincomalee via Mannar and Kankasanthurai.
State of Sea:
The sea areas off the coast extending from Puttalam to Trincomalee via Mannar and Kankasanthurai can be fairly rough at times. The other sea areas around the island will be  moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lankan workers fill void in Israeli labour market triggered by armed conflict

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Colombo (LNW): Sri Lankan Ambassador to Israel, Nimal Bandara, has actively engaged with both the Israeli and Sri Lankan governments to address the manpower shortage in Israel triggered by the consequences of the ongoing conflict between the Hamas and Israeli forces, Israeli-based Jerusalem Post reported.

The devastating October 7 Hamas attacks, resulting in the tragic deaths of two Sri Lankan caregivers, prompted Bandara to take immediate action, facilitating the identification and repatriation of the victims.

The consequences of the war in Israel have resulted in a significant manpower shortage, particularly affecting the agriculture and construction sectors. The withdrawal of work permits from Palestinians in the West Bank and Gaza, along with the departure of foreign workers, including thousands of Thai nationals, has exacerbated the situation.

Encouraging Sri Lankan citizens in Israel to contribute to the war effort, Bandara urged them to stay, donate blood, and volunteer on farms.

Acknowledging the manpower shortage, Bandara held discussions with Israeli authorities, including Agriculture and Rural Development Minister Avi Ditcher, to explore how Sri Lankan workers could fill the vacancies.

A government-to-government plan has been devised, with the Sri Lanka Bureau of Foreign Employment interviewing and selecting applicants in Sri Lanka. Thousands of work permits are being issued for Sri Lankans to work in Israel, covering sectors such as agriculture, construction, and caregiving, according to report.

The project, coordinated between the Sri Lankan embassy and the Population and Immigration Authority, aims to strengthen economic ties between the two countries.

Bandara anticipates mutual benefits, as Israel addresses labour shortages and boosts its economy, while Sri Lanka receives an economic boost through remittances sent home by the workers.

This collaborative effort is seen as a positive development amid challenging times.

Renowned cartoonist and pen behind ‘Gajaman’ Camillus Perera passes away

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Colombo (LNW): Renowned cartoonist and the creative force behind the beloved newspaper cartoon character ‘Gajaman,’ Camillus Perera, peacefully departed from this world at the age of 84.

Perera, a veteran in the world of cartooning, left an indelible mark on the art form and the hearts of many with his iconic creation, ‘Gajaman.’

The passing of this artistic luminary marks the end of an era, leaving behind a legacy that has brought joy, laughter, and cultural significance to generations of readers.

Perera’s contribution to the field of Sri Lankan comics will be remembered as a vibrant and enduring part of Sri Lanka’s artistic landscape.