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Hambantota Port surpasses half a million transshipment units.

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By: Staff Writer

Colombo (LNW): The Hambantota International Port (HIP) has achieved a milestone by handling over half a million transshipment units by September, exceeding the port’s previous year’s roll-on/roll-off (RORO) figures.

“As the global economy recovers gradually, we continue to aggressively market our location and services. As a result, RORO transshipment is steadily increasing at HIP and we have been able to better our volumes year-on-year,” HIPG COO Tissa Wickremasinghe said.

Last year, HIP hit the 500,000-transshipment unit mark in November, closing 2022 with a total volume of 558,200 local and transshipment cargo handled, whereas this year the port was able to achieve the milestone within the third quarter of 2023, setting a new milestone.

The port’s RORO business has seen significant growth in the past 5 years and it is now an attractive destination for transshipment of vehicles.

“This is mainly because we are geared to meet the high quality, efficiency and reliability shipping lines demand. HIP’s services and capacity for transshipment meet ‘best in the world’ standards, which along with our strategic location, makes the port a desirable destination for RORO movement.

Apart from being the most convenient transshipment port for both the pacific and Indian oceans, our operations are top notch,” HIPG General Manager Commercial & Marketing Lance Zuo stressed.

So far this year, the port has managed 218 ship calls involving 8 shipping lines, reaching its peak with 75,608 moves in September, attributed to 32 RORO vessel calls.

The month of September also recorded the highest ever RORO loading volume of 39,200 moves. The 500,000 milestone was completed with transshipment operations carried out for MV. Sunlight Ace of MOL and MV. Soo Shin of Glovis which brought volumes of 2,391 moves and 3, 407 moves respectively.

“We give top priority to standard operational procedures and strictly maintain safe direction during RORO operations. This was clearly proven in the way our expert operations team handled vessels such as Sunlight Ace and Soo Shin, during the recent extreme weather conditions,” Wickremasinghe said.

Compared to 2022, the port has seen a 25 percent increase in RORO volumes. Apart from dedication and hard work, the high growth in volumes is attributed to HIP’s investment in new equipment that has helped the port meet international standards, consolidating its position as a leading transshipment port for RORO.

Construction of the new yard for transshipment vehicles is also nearing completion and is expected to become wholly operational by 2024.

President Wickremesinghe Meets with University Teachers’ Association to Address Key Issues

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President Wickremesinghe held a meeting with members of the Federation of University Teachers’ Association (FUTA) at the Presidential Secretariat on Friday, October 13, to discuss critical matters related to Sri Lanka’s university system and faculty research allowances.

The primary agenda of the meeting, according to the President’s Media Division (PMD), was to address the urgent need to increase research allowances for university lecturers and to seek an exemption from taxation on these allowances. The discussion also delved into broader issues concerning the future of Sri Lanka’s higher education system.

Acknowledging the challenging economic conditions facing the nation, President Wickremesinghe reaffirmed the government’s commitment to promptly addressing these concerns, ultimately aiming to provide relief to the public. He stressed the importance of revising the current allowances for teaching staff to adequately support their research efforts and enhance the quality of research within Sri Lanka’s higher education institutions.

In light of this, the President encouraged officials to explore the possibility of issuing a new circular that would exempt these allowances from existing tax policies if deemed necessary to rectify the situation. He urged FUTA members to collaborate with the Education Ministry and the Attorney General’s office to find practical solutions, requesting a comprehensive report within three weeks.

Additionally, President Wickremesinghe unveiled the government’s intention to conduct a comprehensive study on the potential abolition of the University Grants Commission (UGC) and a complete restructuring of the entire university system in Sri Lanka. This restructuring aims to align the local system with models employed by reputable international institutions such as Deakin University and the University of California systems, with the goal of enhancing the quality and competitiveness of higher education in Sri Lanka. The President’s willingness to explore various options was warmly received by FUTA representatives.

The meeting included key figures such as President’s Secretary Saman Ekanayake, President’s Senior Adviser on Economic Affairs R.H.S. Samaratunga, former Minister Ravi Karunanayake, President of the University Teachers’ Association Prof. Barana Jayawardana, Secretary of the Association Dr. Athulasiri Samarakoon, and other prominent members. This concerted effort signifies a commitment to advancing the Sri Lankan higher education system and faculty welfare.

IMF says it is up to Sri Lanka to consider private creditors proposal

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By: Staff Writer

Colombo (LNW): The International Monetary Fund (IMF) Asia-Pacific Department Director Krishna Srinivasan says Sri Lankan authorities and advisors will have to consider private creditors’ debt restructure proposal which includes GDP linked bonds, according to a report filed on the sidelines of WB /IMF annual meetings in Morocco.

Sri Lanka’s private creditors have sent a proposal on how to restructure US $12 billion of overseas debt, including a new type of bond designed to ease repayments in case of future economic pressure, said two sources with direct knowledge of the matter, as reported by Sri Lankan media on Friday (13) morning.

The Director of the Asia-Pacific Department of the IMF said the role of the fund comes in terms to see how any kind of agreement is consistent with the debt targets.

The IMF and the World Bank are pushing ahead with reforms of SOEs, including the electricity sector, said Krishna Srinivasan, the Director of the Asia-Pacific Department (IMF).

“Efficiency in the energy and electricity sectors could be increased, with structural reforms. In general, SOE reforms are important to Sri Lanka and that is part of the program that we have.

The IMF and the World Bank is pushing ahead with reforms of SOEs, including the electricity sector, he noted”

“We fully sympathize with and understand the hardships of the people in terms of falling wages, cost of living increases, and so on. We are fully sympathetic to that. But again, the program, we do have prices reflecting cost recovery.

It is important because, otherwise, the electricity sector faces losses, and that becomes a public problem down the road,” said Srinivasan on Friday (13).

The much awaited World Economic Outlook of the International Monetary Fund was released on Tuesday (10).

However, Sri Lanka’s projections for 2023–28 are excluded from publication owing to ongoing discussions on sovereign debt restructuring, according to media reports.

The analysis and projections contained in the World Economic Outlook are integral elements of the IMF’s surveillance of economic developments and policies in its member countries, of developments in international financial markets, and of the global economic systems.

“In a more global perspective, Pierre-Olivier Gourinchas, Economic Counselor and Director of the Research Department, IMF stressed that structural reforms at the right time are key, and the first generation of reforms will help unlock more growth based reforms.

On Sri Lanka, Daniel Leigh, Division Chief, Research Department, IMF pointed out that Sri Lanka must continue with its sustained reforms, and current reforms have started to bear fruit.

He went on to note that despite securing some degree of stability, full recovery for Sri Lanka is still not assured.

Tax reforms to alleviate financial strain on professionals /middle class

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By: Staff Writer

Colombo (LNW): On the eve of unveiling Budget 2024 on November 13 the Professional Trade Union Alliance, consisting of 47 professional organizations voiced their grievances about the heavy tax burden placed upon them and urged for changes in the tax structure to alleviate their financial strain.

The Government will provide relief to the taxpayers and will spend more on welfare and development in order to raise the quality of the life of Sri Lankans once the required revenue figures are optimized through the widening of the tax base, State Finance Minister Ranjith Siyambalapitiya said.

In June, the Inland Revenue Department (IRD) issued a gazette notification requiring doctors, lawyers and vehicle owners to open an income tax account while anyone over 18 years is required to open a tax file from 2024 January 1 onward

Under this set up eminent economic expert MP Dr. Harsha de Silva , along with his team of analysts, embarked on an investigative journey scrutinizing the existing tax structures and their implications.

Their findings shed light on two critical aspects of taxation in Sri Lanka: the Pay-as-you-earn (PAYE) tax and the Personal Income Tax (PIT).

The PAYE tax, initially projected to yield Rs 68 billion in revenue for the government, was later revised to Rs 100 billion.

However, the latest figures as of the end of September indicate that the government has already collected Rs 107 billion through PAYE, achieving a 70% compliance rate.

Extrapolating from this data, it is conceivable that the government could potentially earn up to Rs 125 billion by year-end with the current compliance rate or a substantial Rs 178 billion with full compliance. These numbers challenge the initial underestimation of PAYE revenue.

In stark contrast, the Personal Income Tax (PIT) fell significantly short of expectations. The government had projected Rs 115 billion in revenue by the end of last month, but the actual collection stood at a mere Rs 25 billion.

Extrapolating this data for the entire year reveals an estimated Rs 37.5 billion in revenue, far below the initial estimate.

This discrepancy highlights a concerning issue: voluntary compliance with PIT is distressingly low, while PAYE is collected more forcibly.

MP Harsha has proposed an alternative scenario to reform the existing PAYE tax structure. Under this proposal, the PAYE tax structure would begin at 6% for incomes exceeding LKR 150,000, with a progressive increase of 4% for each additional salary slab of LKR 50,000 up to LKR 250,000.

Beyond that, there would be a 2% increment for each subsequent 50,000 slab, capping at a maximum tax rate of 24% for incomes of LKR 500,000 or more.

Additionally, to bridge the revenue gap created by these changes, a 15% surcharge tax would be applied to individuals earning over LKR 750,000. The surcharge is an additional 15% of the tax, not 15% additional tax.

MP Harsha de Silva’s proposed alternatives offer a path toward a fairer and more efficient tax system that can simultaneously support government revenue targets and ease the financial strain on professionals and the middle class. It is a step toward a brighter and more prosperous future for the nation.

Sri Lanka Original Narrative Summary: 14/10

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  1. President Ranil Wickremesinghe to leave for China today to attend Conference to mark the 10th anniversary of China’s Belt and Road Initiative: he is also scheduled to meet Chinese President Xi Jinping for discussions.
  2. Electricity Consumers’ Assn General Secretary Sanjeewa Dhammika says the proposed electricity tariff hike of a further 22% would take a heavy toll on the country: further says almost 20% of industries have taken a hit in one way or another due to sky-rocketing electricity costs.
  3. Hambantota International Port COO Tissa Wickremasinghe says the Port has handled over half a million trans-shipment units by September’23, exceeding the Port’s previous year’s figures.
  4. SL’s private creditors send proposal for the restructure of their USD 12 bn of forex debt to SL: meanwhile, sources close to the Chinese debt re-structuring process have reportedly stated that the China Exim Bank has insisted that there should be no “hair-cut” on capital or interest: sources have also reported that the Exim Bank has insisted that about two-thirds of their loans have to be serviced by SL after the 2-year moratorium which finishes in April’24.
  5. Government Medical Officers Assn meets President Ranil Wickremesinghe: hands over an 8-step proposal on brain drain, health crisis & matters affecting the Doctors.
  6. Police Spokesman says the present Police IGP C D Wickremaratne has been granted an extension of another 3 weeks as IGP.
  7. Colombo Stock Market suffers another week of losses: ASPI loses 174 points (1.58%) during the week while the average daily turnover records a dismal Rs.972 mn: in the previous week too, the ASPI lost 3.1%.
  8. Minister of Tourism and Lands Harin Fernando says he and Minister of Public Security Tiran Alles have submitted a Cabinet paper seeking approval of the Cabinet to issue visas free of charge to tourists from China, Russia, India, Thailand & Indonesia.
  9. Engineers say the water capacity of the Castlereagh & Maussakele reservoirs had increased to 90% and would spill over in a couple of days if the prevailing heavy rain experienced in the catchment areas, persist: also say the Wimalasurendra, Laxapana, New Laxapana, Polpitiya & Canyon power complexes are also presently generating the maximum hydro-electricity power.
  10. Sri Lanka Women’s Cricket Captain Chamari Athapaththu becomes the ICC Women’s Player for the month of September’23.

C.D. Wickramaratne Receives Further Service Extension

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C.D. Wickramaratne, the Inspector General of Police (IGP) , has been granted a further extension in his service tenure, as confirmed by Police Spokesperson SSP Nihal Thalduwa. This extension, effective from Friday, extends his service for an additional three weeks.

Originally slated for retirement from the post of Inspector General of Police on March 23, 2023, President Wickramaratne’s service has been extended multiple times. He initially assumed the role of the 35th Inspector General of Police in Sri Lanka on November 27, 2020.

IMF Official Clarifies Stance on Sri Lanka’s Debt Negotiations

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A senior official from the International Monetary Fund (IMF), Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, addressed questions during a news conference concerning Sri Lanka’s debt situation. Srinivasan clarified that Sri Lankan authorities possess the flexibility to engage in negotiations and consider proposals presented by private creditors, including the possibility of issuing GDP-linked bonds.

He emphasized that the IMF’s role does not involve direct intervention in debt restructuring discussions between creditors and debtors, reaffirming the principle that such negotiations are primarily within the purview of the involved parties.

Showers and Thunderstorms Expected, Precautions Advised

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Showers or thundershowers will occur over most parts of the island after 2.00 p.m.

Fairly heavy showers above 75 mm can be expected at some places in Uva, Central, Sabaragamuwa and Easten provinces.

A few showers may occur in coastal areas of the western and southern provinces during the morning too.

Misty conditions can be expected at some places in Central, Sabaragamuwa and Uva provinces during the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Breaking News: Paradise Wins Kim Jiseok Award for Best Film at the Busan

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Prasanna Vithanage’s film Paradise made history by clinching the Kim Jiseok Award for the Best Film at Busan International Film Festival 2023. Film is produced by Newton Cinema and presented by Mani Ratnam and Madras Talkies.

Paradise had its world premiere at Busan, featuring an all-star cast and crew, including Roshan Mathew, Darshana Rajendran, Shyam Fernando, and Mahendra Perera. The film boasts Rajeev Ravi as the cinematographer, Sreekar Prasad as the editor, Tapas Nayak as the sound designer, and K, the music director. Paradise will have its Indian premiere at the Jio MAMI Mumbai Film Festival from October 27th to November 5, 2023, in the Icon Section which showcases the films of iconic South Asian directors.

The Kim Jiseok Award, established in 2017, commemorates the late Kim Jiseok, who dedicated his life to discovering and supporting the growth of Asian cinema.

Paradise narrates the vacation of a tourist couple, exploring their struggles with societal, personal, and internal challenges. Through their experiences, they unveil an objective truth about human nature.

“After 28 years today, it is ironic to receive this award named after late Kim Jiseok. Kim was a dear friend to all Asian filmmakers. Kim, I am honored to take you to my home. I would like to thank you, my dear producer Anto Chittilappilly and Newton Cinema, our presenter Mr. Mani Ratnam, Madras Talkies, the cast, and crew of Paradise.  This award belongs to you,” stated Prasanna Vithanage.

Mani Ratnam, of Madras Talkies, said, “When there is turmoil in paradise, both social and economic, when there is a re-evaluation of man-woman relationship, when an old epic gets reflected in today’s troubled times, we have Paradise, a film with a vision.”

“Our world premiere at Busan resulted in winning the Kim Jiseok Award for the Best Film. Everyone at Newton Cinema is on ‘Cloud Nine,’ and we believe this victory will propel the film to audiences worldwide. We are confident that audiences everywhere will enjoy the film as much as our sold-out audiences did in Busan,” remarked Anto Chittilappilly, CEO of Newton Cinema.

For more information, please visit:

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Media Contacts:

USA: Alexandra Kelleher, [email protected], +1-916-693-8020

INDIA: Jyothi Krishna, [email protected], +91-894-343-1114

Ambassador Dr. Chanaka Harsha Talpahewa presents credentials to the President of the Republic of the Philippines

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Ambassador of Sri Lanka to the Philippines Dr. Chanaka Harsha Talpahewa presented his credentials to President Ferdinand R. Marcos, Jr., of the Republic of the Philippines on 10 October 2023 at the Malacañan Palace in Manila. This was followed by the traditional wreath laying ceremony at the Rizal Monument in honour of Philippine national hero Dr. Jose Rizal.

Upon presentation of credentials, Ambassador Talpahewa had a tete-a-tete with President Marcos. He conveyed the best wishes and sincere greetings of President Ranil Wickremesinghe to President Marcos, the government and the people of the Philippines.

During the discussion, Ambassador Talpahewa stated that he looks forward to working towards further consolidating and strengthening the warm and friendly relations between Sri Lanka and the Philippines and taking it to the next level. He also mentioned that he will actively work towards bringing in investments from Sri Lankan companies in the Philippines. President Marcos Jr. welcomed this initiative and stated that countries like the Philippines and Sri Lanka should enhance bilateral cooperation not only in the political sphere but also in the economic sphere.

Embassy of Sri Lanka

Manila

13 October 2023