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National Eye Hospital Spends Rs.30 Million Monthly on Diabetic Eye Disease Treatment

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Dr. Kapila Banduthilake, the President of the Consultant Eye Surgeon’s Association, revealed on the 13th that the National Eye Hospital in Sri Lanka incurs a monthly expenditure of Rs.30 million to provide medical care, including surgical interventions, to individuals afflicted by eye diseases stemming from diabetes.

Dr. Banduthilake emphasized that a significant 25 percent of diabetic patients in Sri Lanka currently grapple with diabetic retinopathy, a condition that could be detected early and effectively managed through annual eye examinations conducted by qualified ophthalmologists.

He explained that diabetic retinopathy occurs as a consequence of diabetes-induced damage to the blood vessels, primarily affecting the retina—the back layer of the eye responsible for converting light into visual images.

Furthermore, individuals suffering from diabetes over an extended period, poor diabetes management, elevated cholesterol levels, hypertension, kidney disease, and smoking are at heightened risk of developing diabetic retinopathy.

Ophthalmologists have strongly recommended that individuals above the age of 40 should undergo comprehensive eye examinations conducted by qualified professionals at least once a year. Additionally, those aged 60 and above should be routinely screened for glaucoma, a common eye condition, to ensure timely diagnosis and management.

Sri Lankan Embassy in Israel Reports Disappearance of Two Nationals Amidst Israel-Hamas Conflict

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In the midst of escalating tensions between Israel and Hamas, the Sri Lankan Embassy in Israel has confirmed that two Sri Lankans have gone missing. Sri Lanka’s Ambassador to Israel, Nimal Bandara, issued a special statement detailing the situation and announcing measures to protect Sri Lankan citizens in the region.

Ambassador Bandara revealed that approximately 20 Sri Lankans working near the Gaza Strip are being relocated from their current residences to safer accommodations. To support affected Sri Lankans in Israel, the Foreign Affairs Ministry has allocated USD 20,000 for relief efforts. Furthermore, the Foreign Employment Bureau has approved an additional USD 10,000 to ensure access to food and medical care in case of emergencies.

Unofficial sources indicate that one Sri Lankan has tragically lost their life, while two others remain missing during the recent clashes in Israel. International Red Cross representatives are actively collecting information from the families of the missing Sri Lankans.

Nimal Bandara disclosed that the Sri Lankan Embassy has obtained crucial information, including photographs and physical descriptions, to aid in the identification of the two missing individuals. This data will be forwarded to the International Red Cross in Israel to facilitate their identification.

Israel is currently home to more than 8,000 Sri Lankan nationals, and recent developments have prompted discussions within the Cabinet regarding plans for the potential evacuation of Sri Lankan workers in the event of further emergencies arising from the ongoing conflict between Israel and Hamas.

Prime Minister proposes setting up of a joint economic council with UAE

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Prime Minister Dinesh Gunawardena proposed setting up of a Joint Economic Council with United Arab Emirates to promote trade and investment cooperation between the two countries. This proposal was made when UAE Minister of State of Economic & Trade Affairs of the Foreign Ministry Ahmed bin Ali Sayegh called on him at the Temple Trees in Colombo on October 11.

The UAE Minister agreed that official negotiations should be commenced soon for finalizing Cooperation of Economic Partnership Agreement for enhancing economic ties as there is immense potential in trade, energy, hospitality and tourism spheres as well as for increasing investments in renewable energy projects in Sri Lanka.

The Prime Minister said UAE has the opportunities now to invest in new sectors such as agriculture as new economic zones have been set up for growth of food crops for exports.

He thanked UAE for the support and assistance provided to Sri Lanka for the development work as well as for providing employment to nearly 300,000 Sri Lankan workers and the UAE Minister said the expatriate Sri Lankan workers are an asset for the economies of both the countries.

The UAE delegation included Ambassador Khalid Naser Al-Ameri, Director of the Office of the Minister of State, Sultan Al Mansoori and Deputy Director of the
Department of Economic and Commercial Affairs, Ghada Al Nabulsi. MP Yadamini Gunawardena, Secretary, Ministry of Public Administration Ranjith Ashoka and Additional Secretary to the Prime Minister Harsha Wijewardene were also present during the meeting.

Sri Lanka Explores Cannabis Cultivation for Export Following Cabinet Proposal

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State Minister of Indigenous Medicine, Sisira Jayakody, has revealed plans to introduce cannabis cultivation as a significant component of the export industry once the proposal gains approval from the Cabinet.

The proposal in question has already been submitted to the Cabinet, and it has received the Speaker’s endorsement. State Minister Jayakody underlined that the emphasis would be on utilizing cannabis as a medical resource rather than for recreational purposes.

Moreover, he noted that the Department of Ayurveda has given its consent to employ cannabis as a medical drug, signifying a potential shift towards harnessing the therapeutic properties of cannabis within the realm of indigenous medicine. This move, if executed, could contribute to the development of the export sector and the enhancement of healthcare practices in Sri Lanka.

UK supports towards Sri Lanka’s economic recovery: British FM

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By: Staff Writer

Colombo (LNW): UK Foreign, Minister for the Indo-Pacific, Anne-Marie Trevelyan who was in Sri Lanka to attend Indian Ocean Rim Association (IORA) meeting in Colombo says UK supports Sri Lanka’s economic recovery to complement IMF, World Bank and Asian Development Bank assistance.

In an interview with local media she noted that climate action and economic growth are key areas for UK-SL joint work, as well as working together on post-conflict reconciliation and improving human rights.

On climate action, Britain will boost sustainable trade between the two countries, including through the UK’s new Developing Countries Trading Scheme (DCTS), which gives developing countries access to the UK’s simpler and more generous preferential trading scheme by cutting tariffs, removing conditions and simplifying trading rules.

Through growing shared commitments in these areas, the UK is increasing its long-term commitment to the Indo-Pacific, deepening our partnerships with Sri Lanka and other key players through regional forums such as IORA, she pointed out

The British government wants to support Sri Lanka to be a thriving economy, where issues from the past are addressed and human rights are better protected.

Last year the UK provided £3m in humanitarian support through UN and Red Cross partners, reaching around 70,000 of those worst affected by the economic crisis.

We will continue to help address legacies of conflict, promote human rights and build cohesion across communities, including through our £11m Conflict, Stability and Security Fund (CSSF) program 2022-2025, she pledged.

Building lasting and inclusive peace is key to a stable Sri Lanka, and it will attract foreign investment and help Sri Lanka achieve its economic potential.

The UK remains committed to delivering on the $100bn Climate Finance goal this year to support countries most vulnerable to climate shocks, including Sri Lanka.

She said that she had the opportunity to discuss the progress to avert, minimize, and address the impacts of climate change. Supporting Sri Lanka’s climate work, we have several programs from COP26 Glasgow Pact and The Commonwealth Blue Charter, to the Blue Planet Fund.

At the G20, the British Prime Minister announced that the UK will provide $2bn (£1.62bn) to the second replenishment of the Green Climate Fund (GCF), covering 2024-27. T

his is the biggest single funding commitment the UK has made to help the world tackle climate change by supporting countries to reduce global emissions and help communities adapt.

She lauded the Sri Lankan Government’s prioritization of green growth, including plans to achieve net zero by 2050 and 70% renewable energy in electricity generation by 2030, their National Determined Contribution (NDC) and 2022 Climate Prosperity Plan.

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.