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Sri Lanka’s listed corporates now recover from income recession.

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By: Staff Writer

Colombo (LNW): Sri Lanka’s listed corporations are now recovering after the income recession experienced during the past few years.

First Capital Research makes bullish call on equities as they expect all share price index ASPI of the stock market to reach 13,500 at end 2024

It says corporate earning bottomed out in 3% when they slowed their decline to 5% while expecting 4Q 2024 earnings to record 1% growth from a year ago levels

First Capital Research (FCR) opined that corporate earnings bottomed out in the third quarter of 2023 when such earnings slowed their decline to 5 percent after slumping 65 percent and 70 percent respectively in the first and the second quarters this year, which were more severe than initially anticipated.

This in fact had a bearing on FCR’s 2024 year-end call for the All Share Price Index (ASPI) which they lowered to a range between 13,000 and 14,000.

“Market earnings are to recover from 4Q2023 onwards. However, market earnings for 2024E in absolute terms was tamed down amidst the steep drop in 2023 earnings, pushing the PER to 12x on 2023E earnings,” FCR said in their latest Equity Strategy Report released recently.

They expect the 4Q earnings to have recorded a 1 percent growth from a year ago levels, setting off a continued rebound in the quarterly earnings pushing the benchmark indices higher, making stocks again investable.

Their earnings forecasts are also in line with the growth anticipated in the economy which is expected to have rebounded from the fourth quarter in 2023, although the overall economy would still end up in a decline by about 3.0 to 4.0 percent compared to 7.8 percent contraction in 2022.

They also projected a 3-4 percent growth in the GDP in 2024 and 2025 as the economy gradually recovers from the economic crisis.

While the declining interest rates are going to be a major catalyst for the equities to perform better as expected, FCR however highlighted potential political risks coming from the scheduled elections next year to somewhat dampen the rally and investor sentiments.

They also said the potentially successful completion of the external debt restructuring, progress on State owned Enterprise reforms and the release of the second tranche of the International Monetary Fund will also influence in building investor confidence and bringing the yields of the government securities further down.

Due to their bullish calls for equities, FCR recommended equity funds to raise their equity exposure to 100 percent from their earlier 85 percent while reducing their cash exposure to zero.

MoJo for Governance Story Summit: Advocating Women’s Rights through Mobile Storytelling

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The Centre for Media and Information Literacy (CMIL) orchestrated a groundbreaking event, the MoJo for Governance Story Summit, in Galle, merging technology, governance, and advocacy to address pressing issues surrounding women’s rights. This summit, which brought together government bodies, NGOs, advocates, and women’s rights activists, stood out for its innovative focus on leveraging Mobile Journalism (MoJo) to amplify women’s voices and advocate for change on a global scale.

Timed strategically to coincide with the International Day for the Elimination of Violence against Women, the summit provided a dynamic platform for collaborative action and meaningful dialogue.

At the core of the summit was the theme of advocating for Women’s Rights through Mobile Storytelling, exploring how mobile storytelling can shape narratives, challenge societal norms, and advance gender equality. Engaging sessions facilitated discussions on various facets of women’s rights.

MoJo stories presented during the summit covered a wide array of issues, ranging from Gender-Based Violence to educational rights, nutritious diet concerns, challenges faced by estate workers, minimal female representation in politics, and issues encountered by transgender non-binary females. This diverse range underscored the potency of mobile storytelling in shedding light on critical women’s issues.

Government bodies actively participated in discussions, emphasizing the need for collaboration between the public and private sectors to drive meaningful change. Divisional Secretary Gonapinuwala M. M. M. Shafraas commended MoJo’s accessibility and its effectiveness in communicating complex topics to society.

Renuka Perera from the National Integration Office highlighted the necessity for sex education, citing instances where young girls faced challenges due to lack of knowledge.

Addressing local concerns, officials emphasized the need for safe resting areas for students and women in the Matara District. Participants who created MoJo stories addressing these concerns were recognized, showcasing the tangible impact of mobile storytelling.

Media professionals stressed the importance of empowering young girls in MoJo storytelling and urged NGOs and Government Bodies to provide platforms for their voices. Women’s rights activists shared personal narratives, emphasizing the urgency of addressing systemic challenges. Habaraduwa Development Foundation Chairman Dr. Wimal Dissanayaka applauded participants for shedding light on women’s rights violations through mobile storytelling, recognizing its resonance across digital platforms.

The summit concluded with a resounding call to action, encouraging participants and guests to sustain the momentum. The commitment to utilizing MoJo for governance and advocacy purposes led to the establishment of a collaborative framework, fostering ongoing dialogue and partnerships between Government bodies, NGOs, and activists.

This impactful program was supported by the U.S. Embassy in Colombo under its small and mighty grants program, managed by Sri Lanka Unites.

Health Minister Directs Inspection of National Hospital’s Emergency Unit

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Health Minister Dr. Ramesh Pathirana orchestrated a surprise inspection of the Emergency Unit at the National Hospital in Colombo, with Health Secretary Dr. Palitha Mahipala and Health Services Director General Dr. Asela Gunawardena joining on Wednesday (6).

The visit encompassed a thorough scrutiny of operation theaters, wards, the blood bank, and crucial medical provisions, including antibiotics, X-ray, and CT scan facilities, focusing on the care provided to patients.

Acknowledging the dedicated efforts of the accident ward staff, Health Secretary Dr. Palitha Mahipala and Director General Dr. Asela Gunawardena lauded the commitment exhibited by the entire health workforce, comprising doctors, nurses, and specialists, in rendering treatment services.

Dr. Kumara Wickramasinghe, the Deputy Director General of the National Hospital, received directives aimed at fortifying the treatment services promptly.

The Colombo National Hospital’s Emergency Unit serves as the primary facility attending to accident victims, operating round-the-clock to cater to both critical and non-critical patients. Critical cases are directed to operation theaters, while non-critical cases receive ward treatment, and those requiring intensive care are given appropriate attention.

GMOA Questions Unprecedented Medicine Procurement Budget

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Dr. Haritha Aluthge, Secretary of the Government Medical Officers’ Association, contested the allocation of Rs.181 billion from this year’s budget for medicine procurement, emphasizing that such a historic allocation is unnecessary. Addressing a press conference in Karapitiya, Galle, Aluthge raised concerns about the allocated budget, citing previous instances of misappropriation.

Aluthge expressed the association’s intent to safeguard a portion of the allocated funds, underscoring past incidents where a significant sum meant for procurement vanished due to corruption and fraudulent emergency purchases, amounting to thirty to forty billion rupees lost by the government and the populace.

Despite these challenges, Aluthge voiced optimism about collaborating with the new Health Minister, praising the Minister’s grasp of healthcare intricacies. Acknowledging the urgency of various pressing issues, such as medicine shortages, equipment breakdowns affecting human resources, and the exodus of doctors from the country, Aluthge stressed the need for immediate redressal.

Recognizing the complexity of resolving all issues simultaneously, Aluthge highlighted the gravity of the medicine shortage problem, directly impacting lives. He stressed the imperative nature of effective human resource management and disclosed discussions with the Minister about establishing a system, in conjunction with the President, to retain local doctors—an initiative the association is committed to supporting.

Amidst these discussions, Aluthge raised eyebrows over the unprecedented allocation of Rs.181 billion for medicine procurement, asserting its potential surplus. The association contends that this mammoth budget may not be fully necessary and aims to explore avenues to save a portion of these funds earmarked for medicine procurement.

President Wickremesinghe Allocates Land to Enhance Sri Lanka Law College Facilities

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President Ranil Wickremesinghe recently made a pivotal announcement aimed at bolstering the resources available to students at Sri Lanka Law College. During a session held at the Parliament Complex on Wednesday (6), the President declared the allocation of government-owned land for this purpose, marking a significant milestone in the college’s history.

Highlighting the impending 150th anniversary of Sri Lanka Law College in 2024, President Wickremesinghe underscored its historical importance, noting its role in producing three Presidents of the country.

Urban Development and Housing Minister Prasanna Ranatunga confirmed that, as per the President’s directive, a parcel of land owned by the Urban Development Authority would be designated for Sri Lanka Law College.

The President directed relevant authorities to expedite plans for the immediate improvement of the college’s facilities. Initially, a 40-perch plot will be allocated, with further provisions to be made based on a comprehensive plan developed in consultation with the Justice Ministry.

Dr. Atula Pathinayake, the Principal of Sri Lanka Law College, expressed gratitude for the President’s attention to this matter, noting that in the institution’s 150-year history, no such allocation had been made to enhance student facilities.

Notable figures present during this decision-making process included Secretary to the President Saman Ekanayake, Secretary of the Ministry of Urban Development and Housing W.S. Satyananda, Chairman of the Urban Development Authority Nimesh Herath, officials from the Attorney General’s Department, and representatives from the Students’ Union of Sri Lanka Law College.

President Wickremesinghe Engages in Dialogue with Global Tamil Forum and Buddhist Delegation

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President Ranil Wickremesinghe held discussions with a diverse delegation representing the Global Tamil Forum (GTF) and distinguished Buddhist monks. The meeting, reported by the President’s Media Division (PMD), marked a crucial moment where the Joint Himalayan Declaration was formally presented to the President.

This declaration, a collaborative effort between the Global Tamil Forum and the Buddhist delegation, advocates for a pluralistic Sri Lanka that prioritizes the well-being of all its communities. It emphasizes learning from historical mistakes and underscores the necessity for accountability measures.

The delegation featured esteemed Buddhist monks, including various prominent figures such as Ven. Dr. Madampagama Assaji Tissa Thero, Ven. Siyambalagaswewa Wimalasara Thero, Ven. Kithalagama Hemasara Nayaka Thero, Ven. Prof. Pallekande Rathnasara Thero, Ven. Kalupahana Piyaratana Thero, Ven. Narampanawe Dhammaloka Thero, and Ven. Wadduwe Dhammawansa Thero.

Additionally, international representatives Suren Surendiran, Dr. Kannappar Mukunthan, Bhavan Bhavaguhan, Prakash Rajasundram, Velupillai Kuhanendran, Raj Thavaratnasingham, and Dr. Elias Joseph Jeyarajah were part of the delegation.

The presentation of the Joint Himalayan Declaration signifies a significant stride towards fostering dialogue and collaboration aimed at achieving a harmonious and inclusive Sri Lanka. President Wickremesinghe commended the initiative and pledged to consider the recommendations outlined in the declaration.

Colombo Port City Grants AP Licenses to Three Commercial Banks

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The Colombo Port City Economic Commission revealed the issuance of Authorized Persons (AP) licenses to three prominent commercial banks in Sri Lanka. In an official statement, the Commission confirmed that Commercial Bank, Hatton National Bank (HNB), and Sampath Bank have received these licenses.

Describing this step as a significant milestone, the Commission highlighted its importance in propelling the Colombo Port City Special Economic Zone (SEZ) towards becoming a top-tier international business and service hub in South Asia. The Port City project is recognized as a transformative force reshaping Sri Lanka’s economic landscape.

Moreover, the Commission reaffirmed its commitment to collaboration with key regulatory bodies like the Central Bank of Sri Lanka, the Securities and Exchange Commission, and the Insurance Regulatory Commission. This collaboration aims to establish comprehensive and efficient guidelines, solidifying the Colombo Port City’s status as a premier multicurrency zone and a hub for service exports.

Gazette on Electricity Bill for Industry Reforms Released

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On Friday (8), Sri Lankan authorities announced the publication of the Sri Lanka Electricity Bill through a gazette. Once approved by the house, this bill will transform into an act aimed at implementing substantial reforms within the electricity industry. Key provisions include the establishment of the national electricity advisory council and the designation of the Public Utilities Commission of Sri Lanka as the regulator for this sector.

The bill also outlines legislative measures concerning the incorporation of corporate entities under the Companies Act, No.07 of 2007. These entities will be entrusted with all activities associated with the generation, transmission, distribution, trade, supply, and procurement of electricity.

Roads Blocked as Earth Mounds Collapse Amid Weather Conditions

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Sri Lanka Police reported multiple road blockages caused by earth mounds collapsing and trees falling due to ongoing heavy showers. The Deniyaya – Ratnapura road was obstructed near Anilkanda, at the 86th kilometer post, on Thursday night, halting vehicular movement. Authorities advise using alternative routes as a solution.

Similarly, the collapse of an earth mound in Diyagala, Ginigathhena, disrupted traffic along the Hatton – Colombo A7 main road. Another incident on the Bibila – Lunugala road, specifically at the 32nd mile post, resulted in further road closures.

Additionally, flooding in the Akurana town area along the Kandy-Jaffna main road occurred on Thursday night, although the water levels have since receded, according to police updates.

The Department of Meteorology anticipates continued showers or thundershowers in various regions across the island after 1:00 p.m. on Friday. Heavy showers, potentially exceeding 75mm, are expected in the Central, Sabaragamuwa, Western, and Uva provinces, including the Galle and Kurunegala districts. Furthermore, the Eastern province is forecasted to experience intermittent showers during the morning. Residents are advised to remain cautious and stay updated with weather reports amidst these conditions.

Joint Venture Plans for NLDB Farms Spark Controversy

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Reports have surfaced detailing plans to lease all farms owned by the National Livestock Development Board (NLDB) for a joint venture involving companies from India and Sri Lanka. This venture aims to collaborate on 32,000 acres across 32 NLDB farms, currently undergoing valuation for both land and livestock.

Recent observations by representatives from India’s Amul Company at these farms have sparked discussions about the intended partnership. NLDB Chairman Prof. H.W. Cyril acknowledged that despite the NLDB and Milco’s establishment to bolster domestic animal production, anticipated progress in the sector has not materialized.

Conversely, union representatives of dairy farmers have voiced concerns and staged protests, alleging that the government intends to sell Sri Lanka’s livestock to foreign entities. This controversy has raised debates about the potential implications of involving foreign companies in the country’s agricultural landscape.