Annual Report 2023 of Advocata in conjunction with Canada’s Fraser Institute places SL at the 116th rank out of 165 countries in the Economic Freedom Index: the placing represents a decline from the 104th rank in 2020.
Colombo University’s Dean of the Dept of Economics & (reportedly) new Member of the Central Bank’s Governing Board Dr Priyanga Dunusinghe says there is no use talking about 2048 if the authorities can’t even make realistic predictions about matters such as GDP & Tax revenues for the next 6 months: urges the authorities to prepare more accurate estimates in the future.
President Ranil Wickremesinghe sternly admonishes an interviewer of Deutsche Welle TV, Germany: insists the Govt will not carry out an “International inquiry” on any issue including the Easter Sunday attacks: also says his Govt rejects the report of the UN Human Rights Commission.
Top Opposition Spokesperson & former Foreign Minister Professor G L Peiris says the Govt must take full responsibility for the suspension of the USD 2.9 bn IMF bailout because of its failure to achieve the anticipated revenue: blames the Govt for granting tax concessions to investors and failing to collect taxes, in spite of reaching an agreement with the IMF in that regard.
Cabinet approves proposal to construct 1,996 housing units in the Western Province for people residing in low-facility housing, using a grant of CNY 552 mn (USD 77 mn) from the Chinese Govt.
SL welcomes 111,938 tourists in September’23, but misses the target of 120,201: marks the lowest arrivals figure since June’23 though the cumulative arrivals crossed 1 mn tourists for the 1st time in 3 years.
Reports say SL’s major creditors, Japan (with a 24% share), India (15%) & France (4%) are likely to reach a broad agreement this month on debt reduction steps including extending repayments: China, the largest single creditor accounting for 42% of SL’s overall external debt, is yet to agree.
US Govt files a statement of interest in the New York Federal Court, backing the SL Govt’s request to delay a lawsuit by Hamilton Reserve Bank, which is seeking payment on more than USD 250 mn in sovereign bonds that fell due in July’22: says the delay would help on-going restructuring talks between SL & other creditors: previously, the French & UK Govts had also asked the Court to put the case on hold, saying that delaying the case was “key to ensuring the success of the IMF-supported assistance program” for SL: HRB has opposed the bid to postpone the case, saying that putting the case on hold “would be both contrary to US policy interests and an exercise in futility.”
Chairman of Litro Gas Muditha Peiris says the new increased prices of Gas will be announced very soon: Litro Gas previously increased its prices on the 4September’23.
Former SL Cricket Captain Kumar Sangakkara has been appointed as the new Chairman of the Marylebone Cricket Club (MCC) Cricket Committee.
The prevailing showery condition in south-western part of the Island is expected to continue further.
Showers or thundershowers will occur at times in Western, Sabaragamuwa, Southern and North-western provinces and in Kandy and Nuwara-Eliya districts.
Fairly heavy showers above 75mm can be expected at some places in Western, Sabaragamuwa and Southern provinces.
Showers or thundershowers will occur at several places in Eastern and Uva provinces and in Polonnaruwa and Mullaitivu districts during the evening or night.
General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
In a candid statement, Vajira Ellepola, the Director General of The Employers’ Federation of Ceylon (EFC), emphasized the critical need for labor law reforms in Sri Lanka to foster business growth, which, in turn, would pave the way for the development of resilient and sustainable organizations.
Ellepola pointed out that Sri Lanka’s current labor laws have remained largely unchanged for decades, despite significant socioeconomic transformations in an intensely competitive global landscape. This, he stated, highlights the urgency of enacting labor law reforms to facilitate investment promotion and ensure the country’s relevance in the international arena.
These remarks came as EFC was invited to participate in a series of meetings with political representatives from various opposition parties, Prime Minister Dinesh Gunawardena, the Bar Association, representatives of state enterprises, trade unions, and the Executive Council. The discussions revolved around the proposed Employment Act and the necessity of labor law reforms.
The EFC, representing the private sector alongside several business chambers, reiterated its long-standing advocacy for labor law reforms. While previous governments have expressed intentions to reform existing laws, they have often lacked the necessary political determination to implement these changes for the benefit of all stakeholders, Ellepola asserted.
The overarching objectives of labor law reforms, as outlined during these discussions, encompassed the promotion of investment, the creation of enhanced employment opportunities, the fortification of social security measures, and the creation of a conducive environment for both employees and employers to harness the full potential of the modern, technology-driven world of work.
To realize these objectives, the EFC proposed several key changes. These changes include adapting labor laws to align with the evolving socio-economic landscape, acknowledging the transformative impact of digital technology on the world of work, and promoting dynamic private sector-driven economic growth to ensure the national economy remains competitive and sustainable.
Ellepola stressed the urgent need to prioritize labor law reforms, emphasizing that they are essential for granting enterprises greater flexibility to attract investments, ultimately leading to increased employment opportunities. He presented proposals organized under three main pillars: laws pertaining to the termination of employment, conditions of employment, and laws governing industrial and labor relations.
Moreover, Ellepola underscored that for economic reforms in Sri Lanka to yield optimal results, they should be complemented by administrative, legal, and educational reforms, thus highlighting the interconnected nature of these reforms in driving the country’s progress.
In a recent turn of events, Sri Lanka’s foreign reserve levels have shown a promising upward trajectory, reaching a notable milestone in May 2023. During that month, foreign reserves experienced a remarkable month-on-month (MoM) increase of 26%, soaring to an impressive USD 3.5 billion.
This positive trend continued, with reserves steadily improving through July 2023. However, there was a slight setback in August, as reserves dipped by 4% to USD 3.6 billion. This dip was attributed to the country’s settlement of a significant portion of the Bangladesh swap facility, as reported by Capital Research in their Pre-Policy Analysis report.
The growth in reserves can be largely attributed to substantial progress in key sectors, including a remarkable 43.1% year-on-year increase in tourism earnings and an impressive 78.0% year-on-year surge in worker remittances.
Furthermore, Sri Lanka’s Balance of Payments (BoP) remained in positive territory, bolstered by a narrowing trade deficit, which was recorded at USD -2.7 billion in July 2023, compared to USD -3.6 billion during the same period the previous year. Despite these positive signs, reserves are still below the required levels, and the gradual easing of import restrictions and challenges in the export sector, particularly in apparel, may hinder further reserve growth.
In regard to the country’s debt restructuring efforts, Sri Lanka successfully completed the Domestic Debt Restructuring in September 2023. However, the External Debt Restructuring process is ongoing, with expectations of a delay in the second tranche until December 2023, pending the completion of external debt restructuring.
Sri Lanka’s GDP for the second quarter of 2023 revealed a contraction of 3.1% year-on-year, aligning with the earlier forecast of -3.0% year-on-year by the Financial and Capital Research (FCR). This contraction represents a significant improvement compared to the 7.4% output decline observed in the second quarter of 2022. The deceleration in inflation and the anticipated stabilization of interest rates during the quarter contributed to this positive development.
Notably, inflation in Sri Lanka has been on a decelerating trend for the past 11 months. This trend indicates that tight monetary measures have effectively curbed demand pressures. Additionally, cost-push inflation appears to be easing as global commodity prices stabilize, and China’s reopening paves the way for a faster-than-expected economic recovery.
Commenting on the monetary policy outlook, experts believe there is a 60% probability that the Central Bank of Sri Lanka (CBSL) may consider relaxing policy rates in the upcoming policy review meeting, potentially adopting a dovish stance to stimulate economic growth and accelerate the decline in interest rates.
As economic indicators continue to stabilize and with expectations of a robust recovery in the latter part of the second half of 2023, it is anticipated that a substantial monetary relaxation may be necessary to further support the country’s economic revival.
The tribute ceremony for senior journalist Edmund Ranasinghe, the founding editor and editorial director of the ‘Divaina’ newspaper and one of Sri Lanka’s most esteemed journalists, is scheduled for today (03) at 3:00 pm at the Presidential Secretariat.
President Ranil Wickremesinghe will preside over this event, which marks the initiation of a program conceptualized by President Ranil Wickremesinghe to honour senior journalists who have made significant contributions to journalism in the country.
In appreciation of Mr. Ranasinghe’s seven decades of dedicated work in the media, a book titled ‘Edmond’s Newspaper Revolution,’ compiled by the 93-year-old journalist himself, will be published.
The keynote speech at this tribute ceremony will be delivered by Mr. Upali Tennakoon, the former Editor-In-Chief of the Island and Rivira newspapers, currently residing in the United States of America.
Mr. Edmond Ranasinghe embarked on his media career as a journalist at the Lake House, ‘Daily News’ newspaper in 1952. In 1973, while serving as the News Editor and holding the title of Deputy Editor, he resigned from his position in protest of the government’s takeover of the Lake House.
In 1977, Mr. Ranasinghe was reappointed as the Editor of ‘Dinamina’ by invitation from Lake House and later he also took on the role of Editor at Silumina.
In 1981, he became the founding Editor of the ‘Divaina’ newspaper, revolutionizing journalism in Sri Lanka and elevating it to unprecedented popularity in a short span of time. In 2016, at the age of 86, Mr. Ranasinghe once again assumed the role of Editor at ‘Silumina,’ further showcasing his enduring commitment to journalism.
Kanaka Herath, the Minister of State for Technology, announced that Sri Lanka will introduce the new motor vehicle revenue license system (eRL 2.0) on the 7th of this month. He emphasized that this program will be implemented in all provinces except for the Western Province.
Additionally, he highlighted that the new motor vehicle revenue licenses (eRL 2.0) can be conveniently obtained from home using this innovative system. State Minister Herath shared these details during a news conference held at the Presidential Media Centre Oct- (02), under the theme ‘Collective path to a stable country’.
State Minister Kanaka Herath who spoke further said:
To improve the efficiency of the public service in this country, as well as to reduce irregularities, the entire public service should be digitized. Therefore, President Ranil Wickremesinghe stated that all government institutions in Sri Lanka should be digitized through the 2023 budget statement. Nine pilot projects are being implemented by selecting nine government institutions including Divisional Secretariat Divisions, Pradeshiya Sabha, Municipal Councils and District Secretariat Offices, under the digitization of the public service.
In addition to this, starting from the 7th of this month with the introduction of eRL 2.0, an opportunity arises to acquire vehicle revenue licenses through the online system, a program jointly executed by the State Ministry of Technology and the Information and Communication Technology Association of Sri Lanka. This initiative encompasses all eight provinces, excluding the Western Province. Concurrently, there are ongoing efforts to expand this program to encompass all government institutions and facilitate online payments by March of the coming year.
These endeavours are geared toward enhancing the efficiency and fortifying the public service throughout the entire country through digitization, with the ‘Digicon 2023-2030’ program having been initiated under the guidance of President Ranil Wickremesinghe to attain this objective.
Furthermore, a series of events, including technology exhibitions, conferences, and commendation ceremonies for young individuals, have been organized. Of particular note, the Digital Investment Conference aimed at kick-starting new businesses in the country is scheduled for October 13 at the Shangri-La Hotel in Colombo, with approximately 100 investors slated to participate. This event is poised to bolster the nation’s investments and aligns with the core objective of the Digicon program, which is to establish a comprehensive digital economy plan for the country. It is anticipated that this endeavour will enable the rapid accumulation of foreign exchange, thereby contributing to the overall strengthening of the country’s economy.
President Ranil Wickremesinghe, in an interview with a German-based international broadcaster, Deutsche Welle, has strongly criticized the allegations made in a documentary recently aired by the British television network Channel 4.
During the interview, President Wickremesinghe made it clear that the Sri Lankan government is not inclined to conduct an international inquiry into any matter, including the Easter Sunday terror attacks. He emphasized that while some individuals may have called for such an international probe, it has not been endorsed by the country’s parliament.
This stance reflects the Sri Lankan government’s position on the matter and its commitment to handling domestic issues independently, without external intervention. The President’s remarks underscore the importance of maintaining sovereignty and national control over sensitive investigations and matters of national significance.
As of today, October 3rd, the Sri Lankan Rupee has maintained its stability against the US Dollar at commercial banks in Sri Lanka, consistent with the rates observed on the previous Monday.
Here are the exchange rates at select banks:
At Peoples Bank, the buying and selling rates for the US Dollar remain consistent at Rs. 316.42 and Rs. 329.62, respectively.
Commercial Bank reports that the buying rate for the US Dollar remains unchanged at Rs. 316.71, with the selling rate also holding steady at Rs. 328.
Sampath Bank is also reporting no change, with the buying and selling rates for the US Dollar at Rs. 318 and Rs. 328, respectively.
This stability in exchange rates suggests a balanced foreign exchange market at the moment, providing some reassurance for businesses and individuals involved in international transactions.
Kapila Kumarasinghe, the Additional Commissioner General of Excise, announced that all licensed liquor shops in Sri Lanka will remain closed today in commemoration of World Temperance Day.
This decision underscores the country’s commitment to promoting temperance and responsible drinking. World Temperance Day serves as a reminder of the importance of moderation and responsible consumption of alcoholic beverages. During this observance, Sri Lanka is taking a proactive step to encourage individuals to reflect on the impact of alcohol and to make responsible choices.
Colombo (LNW): The United States Agency for International Development (USAID) Indo Pacific Opportunity Project (IPOP) and Sri Lanka Tourism Alliance (SLTA) recently launched a social media influencer campaign to support efforts to increase Sri Lanka’s tourist arrivals and boost the tourism industry.
The campaign will be conducted by a team of 10 global influencers with followers from top tourism source markets, including: the UK, India, France, Germany, Poland, Scandinavia, Canada and the United States.
The team will travel to many exotic locations around the country to showcase a range of sustainable niche tourism products and experiential cultural attractions that Sri Lanka has to offer to attract more visitors to the country.
Sri Lanka is currently experiencing an encouraging surge in tourist arrivals and on Tuesday 26 September, crossed the crucial landmark of one million tourists for the year 2023 – easily surpassing the total of 720,000 recorded for the whole of 2022.
USSAID launched the Indo Pacific Opportunity Project (IPOP) tourism activity in July 2022 to support economic reforms and promote foreign direct investment in Sri Lanka.
The two-year project is assisting the Sri Lanka Tourism Ministry to streamline and implement new policies and procedures to enable fast-tracking and attraction of foreign direct investment in the tourism sector.
The launch of this social media influencer campaign is another step forward in USAID-IPOP’s strategy to boost Sri Lanka’s tourism.
The landmark also coincided with the celebration of World Tourism Day on 27 September.“The increase in tourist arrivals this year in Sri Lanka is very encouraging,” said Chief Guest, Ambassador of the United States to Sri Lanka Julie Chung at the special launch event.
With the United States having worked side-by-side with Sri Lanka for 75 years, this is what a strong partnership looks like,” she added.
Using social media influencer campaigns has become a popular strategy for brands and organisations globally to communicate their messages, products, or services to a broader and more engaged audience.
USAID has successfully sponsored social media influencer campaigns in Georgia and, most recently, Nepal. Theses campaigns are especially useful to target specific markets (e.g. UK, Germany, India, etc.) as well as certain interests (Adventure, Culture, Wellness etc.).
“This social media influencer campaign is a novel idea and very timely boost for tourism in Sri Lanka. said Sri Lanka Tourism Promotions Bureau Chairman Chalaka Gajabahu.
By leveraging the power of social media through high-quality influencers, it is possible to increase the global awareness of the amazing tourism assets in Sri Lanka, positioning the country as a high-value destination.
Through captivating content, engaging storytelling, and strategic targeting, the campaign can generate demand, stimulate tourism growth, and contribute to the economic recovery of Sri Lanka’s tourism sector.
“In the tapestry of landscapes and cultures that cloak the island of Sri Lanka, there lies an abundance of singular and sustainable experiences and sights,” says Steller Co-Founder and CEO Pete Bryant.
