February 09, Colombo (LNW): Agriculture and Plantation Industries Minister Mahinda Amaraweera has taken proactive steps to address the lingering issues surrounding the 2021 organic fertilizer transaction. Minister Amaraweera plans to engage in discussions with a delegation, including Chinese Vice Minister of Agriculture and Rural Affairs Ma Youxiang, who is set to arrive in Colombo for the 37th Asia Pacific Conference (APRC) of the United Nations Food and Agriculture Organization scheduled from February 19 to 22.

The aim of these discussions is to find an amicable solution to the problems that emerged during the implementation of a court settlement involving the Chinese Organic Fertilizer Company and two state fertilizer companies. Minister Amaraweera is keen on resolving these issues in a manner that preserves the friendly relations between Sri Lanka and China, while also benefiting local farmers.

To facilitate this diplomatic effort, the Minister has instructed the Secretary to invite officials from the Foreign Affairs Ministry and Minister Ali Sabry to participate in the discussions. Additionally, Minister Amaraweera and other officials are expected to engage with the Deputy Minister of Agriculture and Rural Affairs of the Chinese Government during their visit.

The organic fertilizer procurement initiated by the Agriculture Ministry in 2021 became a contentious matter, leading to a compensation payment of USD 6.9 million by the Sri Lankan government. This payment was made following allegations of damaging the reputation of the Chinese company supplying the organic fertilizers. Despite attempts to secure alternative fertilizers and agricultural equipment to meet the compensation amount, challenges arose due to the specific nature of the organic fertilizer in question.

In response to the complexities of the situation, the Cabinet of Ministers decided to involve the Foreign Affairs Minister in facilitating discussions with all relevant parties. The ultimate goal is to reach an amicable agreement between China and Sri Lanka, with the hope that comprehensive proposals will be submitted to the Cabinet to resolve this ongoing issue.

February 09, Colombo (LNW): In a parliamentary session held on February 8, Justice Minister Dr. Wijeyadasa Rajapakshe disclosed that a staggering Rs.1,300 million, obtained as loans from State Banks by university academics pursuing higher education abroad, remains unpaid. The Minister highlighted that these lecturers, who migrated for advanced studies, have neglected to return to their respective universities. Surprisingly, both the university and banking systems have failed to take any measures to recover this substantial amount.

Responding to a query from Opposition Leader Sajith Premadasa, Minister Rajapakshe acknowledged the ripple effects of this situation, noting that the non-repayment of interest-free loans from state banks is hindering the education of students enrolled in Horizon campus.

Furthermore, Minister Rajapakshe drew attention to the alarming financial situation of two key State banks, namely the Bank of Ceylon and the People’s Bank. These institutions, originally established to bolster the domestic economy, have witnessed a concerning trend of Rs.602 billion in inactive loans, particularly related to the third phase loans. The Minister emphasized that this substantial loss to the country reflects a flawed policy, despite the banks’ efforts to provide fair-interest loans to small and medium-sized industrialists.

The Kurunegala District Deputy Inspector General’s Office (DIG) has issued a strong warning about a financial scam targeting personal bank account details using the newly introduced Tax Identification Number (TIN) program. Scammers are posing as bank officers and tricking individuals into revealing sensitive information, leading to significant financial losses.

According to the DIG’s office, several individuals have already fallen victim to this scam, losing large sums of money. The modus operandi involves scammers impersonating staff members of state banks and contacting individuals under the guise of assisting with setting up their TIN accounts. They then manipulate victims into divulging confidential details like money transfer codes (OPTs), ultimately gaining access to their bank accounts and siphoning off funds.

Recent instances reveal the severity of the threat. A Buddhist monk from Kurunegala lost over Rs. 200,000, while another individual suffered a staggering Rs. 1 million loss due to such fraudulent activities.

To combat this issue, the Kurunegala District DIG’s Office has launched a special awareness program to educate the public about the scam and urge them to remain vigilant. They reiterate the following crucial points:

• Never share personal bank account details or OPTs with anyone over the phone, even if they claim to be bank representatives.
• Banks will never request such information through unsolicited calls or messages.
• Always verify the authenticity of any communication claiming to be from your bank through official channels.
• Report any suspicious activity to the authorities immediately.

By staying informed and exercising caution, individuals can protect themselves from falling prey to these cunning scams.

February 09, Colombo (LNW): President Ranil Wickremesinghe, currently in Australia for the 7th Indian Ocean Conference, held key meetings with Western Australia Premier Roger Cook and Foreign Minister Penny Wong in Perth today.

Wickremesinghe, scheduled to deliver the conference’s keynote address tomorrow, used the opportunity to update both officials on Sri Lanka’s ongoing economic recovery efforts and outline plans for modernization.

The President’s Media Division (PMD) reported that discussions with the Diaspora in Perth were also fruitful, with members expressing their willingness to help in areas like climate change and tourism initiatives.

This visit strengthens diplomatic and economic ties between Sri Lanka and Australia, potentially attracting potential investors and collaborators from Down Under.

February 09, Colombo (LNW): Starting tomorrow, February 10, the ‘Aswesuma’ welfare benefits program is inviting new applications to select an additional 400,000 beneficiaries, according to the Finance State Ministry. The selection criteria for beneficiaries will undergo revisions based on suggestions from various parties.

In a notable move, the monthly allowances for disabled persons, kidney patients, and elderly citizens are set to be retrospectively increased from January 2024. Kidney patients and disabled persons will see their allowances rise from Rs. 5,000 to Rs. 7,500, while the allowance for elderly citizens will increase from Rs. 2,000 to Rs. 3,000.

State Minister Shehan Semasinghe announced on Thursday (Feb. 08) that ‘Aswesuma’ beneficiaries entitled to these allowances will be identified in the first quarter of 2024, with the increased payments starting from April 01.

Furthermore, payments for the ‘vulnerable’ and ‘transitional’ social groups will continue until December 31. The existing ‘vulnerable’ and ‘transitional’ social groups are planned to be merged in the future, covering a total of 800,000 families who will receive an allowance of Rs. 5,000. The ‘transitional’ social group, currently receiving Rs. 2,500, will also be included in this consolidation.

The current count of ‘Aswesuma’ beneficiaries surpasses 1.7 million, with the government aiming to extend these benefits to a total of 2 million people.

ECONOMYNEXT – Sri Lanka’s central bank relaxed restrictions it imposed on the usage of the Standing Facilities by the Licensed Commercial Banks (LCBs) under the Open Market Operations (OMOs) in a bid to accelerate the fall of market interest rates, the central bank said.

Despite repeated reduction in the central bank’s key policy rates, the market rates have not declined in the same proportion, central bank officials have said,

“The relaxation of the restrictions on the Standing Facilities is expected to accelerate the downward adjustments in market interest rates as envisaged under the overall monetary policy direction of the Central Bank,” the central bank said in a statement.

“After carefully reviewing the developments in the domestic money market, as well as the behaviour of LCBs in terms of market participation along with the improvements in liquidity, the Monetary Policy Board, at its meeting held on 07 February 2024, decided to relax the restrictions imposed on the Standing Facilities to LCBs under OMOs.”

“Accordingly, with effect from the reserve maintenance period commencing 16 February 2024, the restriction on the SLF (Standing Lending Facility) will be removed and the restriction on SDF (Standing Deposit Facility ) will be relaxed from five times (05) to ten times (10) during a calendar month.”

The Central Bank introduced restrictions in January 2023, limiting the access to the SDF to a maximum of five (05) times per calendar month, while access to the SLF was limited to 90 per cent of the Statutory Reserve Requirement (SRR) of each LCB, at any given day.

The central bank said the measures were imposed with the intention of reducing the overdependence of LCBs on the overnight facilities offered by the Central Bank, supporting the reactivation of the domestic money market, particularly the call money market, and inducing LCBs to introduce internal corrective measures.

The new move comes after the Central Bank observed its restrictions have yielded positive outcomes by way of reactivating the domestic money market and curtailing excessive competition for deposit mobilisation among financial institutions.

“These measures were also instrumental in inducing a moderation in the market interest rate structure in line with the monetary policy stance, while preserving stability of financial institutions and the financial system,” the central bank said. (Colombo/Feb 09/2024)

1.Chief Opposition Whip & SJB MP Lakshman Kiriella accuses President Ranil Wickremesinghe of planning to put off the Presidential polls with the help of some “crony” civil society organisations.

2.State Minister Ranjith Siymabalapitiya says Govt revenue in January has shot up 25% over the target to Rs.274 bn, aided by increased VAT: discloses Customs Dept has exceeded its target of Rs.114 bn for January by 11% to achieve Rs.121 bn: Excise Dept revenue of Rs.14 bn has also surpassed the target of Rs.12 bn.

3.SLPP dissident MP Gevindu Cumaratunga says the Online Safety Bill had been rushed through Parliament with no heed for the Standing Orders pertaining to passing new legislation.

4.Acting IGP Deshabandu Tennakoon says 42 persons, including 18 engaging in sexual abuse & 5 pickpockets had been arrested during an operation by policemen in civvies to apprehend those who commit crimes & harass passengers on public transport.

5.Speaker swears in L K Jagath Priyankara as an MP to fill the vacancy created in Parliament by the death of former State Minister Sanath Nishantha.

6.SLPP MP Mahindananda Aluthagamage warns Govt against trusting data & figures provided by the Ministry of Finance: previously, the Treasury Secretary had announced that the country is bankrupt, and later denied having done so: the CB Governor had also announced that local currency debt will not be re-structured and later subjected the EPF Members balances to a massive “cut” in value.

7.Finance Ministry says the monthly allowance for disabled persons & kidney patients has been increased from Rs.5,000 to Rs.7,500: also says the allowance for elderly persons has been increased from Rs.2,000 to Rs.3,000 with effect from January’24: ‘Aswesuma’ recipients within these categories to receive the increase from 1st April’24.

8.Minister of Ports Nimal Siripala de Silva says it was
President Ranil Wickremesinghe who ‘brainwashed’ the NPP to engage with Indian leaders: asserts that those who once lectured on “Indian expansionism” are now meeting with Indian leaders: UNP Chairman Vajira Abeywardena MP says the visit of NPP Leader Anura Kumara Dissanayake to India is a welcome move and it is expected that the NPP will work with the present Govt.

9.Former Colombo Municipal Council Member Alfred Sampath seeks the President’s intervention to reduce crematorium charges, which the CMC raised from Rs.1,500 to Rs.15,000 for Colombo residents & from Rs.5,000 to Rs.25,000 for others: laments poor people are unable to afford such high charges.

10.SL Cricket announces a 16-member squad for the ODI series against Afghanistan: Kusal Mendis named as Captain & Charith Asalanka as Vice Captain: Dasun Shanaka dropped & Chamika Karunaratne included: Wanindu Hasaranga back in the squad following recovery from injuries.

February 09, Colombo (LNW): In a significant development yesterday opposition leader expressed reservations about the Online Safety Act, citing nine clauses that allegedly deviate from the Supreme Court’s directives.

Despite these apprehensions, Justice Minister Dr. Wijeyadasa Rajapaksa stood firm, asserting that no aspect of the enacted Act is subject to alteration.

A fiery confrontation unfolded today in the Sri Lankan Parliament between Opposition Leader Sajith Premadasa and Speaker Mahinda Yapa Abeywardena regarding the passage of the contentious Online Safety Bill. Critics argue that the bill infringes upon Supreme Court rulings and disregards judicial guidance.

Premadasa accused the government of neglecting the court’s recommendations on crucial clauses, such as those related to internet access revocation and contempt of court. He emphasized the court’s stress on due process and magisterial oversight, both of which he alleged are lacking in the current legislation.

The Speaker defended the process, stating that both sides must agree for a vote to occur. He denied personal involvement in the amendments, asserting that he only “mentioned names.”

Premadasa criticized the Speaker’s refusal to vote on numerous occasions, labeling it a dereliction of duty and a violation of the Constitution. He demanded a special party leaders meeting to address the opposition’s concerns.

Intervening, Minister of Justice Wijeyadasa Rajapakshe acknowledged “shortcomings” in the bill but downplayed their significance. He assured the chamber that the government is open to “necessary amendments” and underscored that the measures were not intended to shield the government or the president.

Premadasa seized on this admission, asserting that it affirmed the opposition’s concerns about the bill’s flaws. He highlighted that even the Justice Minister acknowledged deficiencies in the process.

Adding to the controversy, MP Weerasumana Weerasinghe raised concerns about the violation of parliamentary privileges, alleging that members were denied the opportunity to vote on the third reading of the bill.

February 09, Colombo (LNW): D.V. Chanaka, the State Minister of Power and Energy, announced that Sri Lanka has successfully generated USD 3 million in revenue through the sale of 5,200 MT of fuel via the revitalized bunkering system for vessels. This achievement marks a significant milestone in stabilizing the country’s energy finances, demonstrating proactive efforts towards economic resilience.

Highlighting the establishment of a USD 200 million buffer stock, Minister Chanaka emphasized the importance of this measure in mitigating potential economic fluctuations and ensuring energy security. He commended collective efforts that have contributed to the nation’s progress, recalling past challenges, including fuel shortages and long queues, and expressing gratitude for the dedication of all involved.

Minister Chanaka proudly revealed that Sri Lanka currently holds its largest oil reserves in recent history, indicating improved fuel security and preparedness. He reassured the public about maintaining a balanced petroleum legal corporation dollar system, showcasing responsible financial management within the sector.

The government’s proactive measures extend beyond revenue generation, as evidenced by the creation of a USD 200 million buffer stock to safeguard against economic shocks. Additionally, they maintain a weekly supply of dollars to meet immediate needs, reflecting a commitment to responsible financial management.

Minister Chanaka shared that the current fuel stock exceeds 75,410 tons, covering various fuel types for vehicles, aviation, and power generation. This accomplishment is attributed to securing long-term contracts through tender procedures, ensuring a steady supply for the next six months.

Anticipating a potential decrease in global oil prices after March, Minister Chanaka expressed optimism for passing on the benefits to consumers. The government’s focus on strategic storage, timely purchases, and the elimination of late payment fees since 2023 reflects a comprehensive approach to navigating global oil price fluctuations.

Furthermore, Minister Chanaka outlined positive developments in Sri Lanka’s oil procurement strategies, including the elimination of annual late fees through a new storage system, the transition from a traditional tender method to an auction system, and exploration of new technologies to reduce procurement fees.

The restart of the bunkering system in 2024, allowing ships to refuel, has not only contributed to revenue generation but also demonstrated Sri Lanka’s commitment to expanding services by providing diesel to vessels in the near future.

February 09, Colombo (LNW): Mainly fair weather will prevail over the island.

Misty conditions can be expected at some places in Central, Sabaragamuwa and Western provinces and in Galle and Matara districts during the morning.