Colombo (LNW): Finance State Minister Ranjith Siyambalapitiya today (09) announced the government’s decision to remove all import bans effective from today, with the exception of restrictions on vehicle imports.
These stringent import measures were initially implemented in March 2020 in response to the COVID-19 pandemic and its economic ramifications.
While the government of Sri Lanka started to progressively relax these restrictions on various goods since November 2022, the ban on vehicle imports remains in place.
Colombo (LNW): During a Cabinet briefing, President Ranil Wickremesinghe discussed the recent unrest in Israel and its potential impact on Sri Lankans and Israelis living in both nations.
Stressing the importance of taking swift measures to guarantee the safety of Sri Lankans employed in Israel, the President instructed the Ministry of Foreign Affairs to confirm their safety.
Wickremesinghe advocated for aiding Israelis in Sri Lanka, whether tourists or workers, in their return to Israel, and emphasised that the security for Israelis in Sri Lanka must be ensured.
While the President reiterated Sri Lanka’s sustained endorsement of a two-state solution for Israel and Palestine, he denounced the recent Hamas offensive on Israel. He maintained that even though Sri Lanka had previously criticised Israel’s actions, such assaults were indefensible.
Urging an immediate end to the hostilities, President Wickremesinghe aligned with the African Union’s stance and highlighted the global repercussions of the conflict on oil prices.
He expressed concerns that the ongoing strife could result in sustained high fuel costs, negatively impacting developing nations, including Sri Lanka.
Overall, the President’s remarks reflect Sri Lanka’s dedication to regional peace and its commitment to safeguarding its residents and foreign nationals during such crises.
Colombo (LNW): The Sri Lankan Rupee (LKR) indicates a slight depreciation against the US Dollar today (09) in comparison to last week’s Friday, as per the official exchange rates list issued by the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US Dollar has increased to Rs. 318.30 from Rs. 318.22, and the selling price to Rs. 328.93 from Rs. 328.90.
The Sri Lankan Rupee has also depreciated against several other foreign currencies, but indicates appreciation against Gulf currencies.
Colombo (LNW): Set to begin operations on October 10, a high-speed ferry service will connect Sri Lanka and India.
This ferry will run from Nagapattinam in Tamil Nadu, India, to the Kankesanthurai port in Sri Lanka’s Northern Province.
As per reports from Indian media last month, a passenger terminal was under construction at the Nagapattinam Port to be finalised before the ferry’s inaugural run.
The ferry route will span 60 nautical miles and is expected to carry a minimum of 150 passengers, with the transit time estimated at around two hours.
The service will be launched by the Shipping Corporation of India and will be overseen by the Central Industrial Security Force (CISF).
Colombo (LNW): Attorney-at-Law Panduka Keerthinanda has been appointed as the Chairman of the Land Reform Commission (LRC) today (09).
The appointment was made before Tourism and Lands Minister Harin Fernando.
Mr. Keerthinanda was enrolled to the Bar in 1993. He hold a bachelors degree from the University of Colombo (1990), and as a Senior practitioner in the bar, he has acquired commendable experience in Criminal and Civil Law practice in Sri Lanka.
Keerthinanda previously served as the Chairman of the Sugathadasa National Sports Complex Authority, a Member of National Sports Council, a Legal Consultant to the Sports Ministry (2010-15), and a Legal Consultant to the Ministry of Telecommunication, Foreign Employment and Sports.
Being an active figure contributing to the well-being of the field of sports in the country, Mr. Keerthinanda intervened in adopting the Convention Against Doping in Sports Act 33 of 2013, and the Prevention of Offences Relating to Sports Act 25 of 2019.
He currently serves as the Legal Advisor to Tourism and Lands Minister Harin Fernando and as the Chairman of the Tourism Advisory Committee.
Colombo (LNW): The Sri Lankan Rupees happens to be steady against the US Dollar as revealed by leading commercial banks in the country today (09) in comparison to last week’s Friday.
At Peoples Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 316.18 and Rs. 329.37, respectively.
At Commercial Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 317.68 and Rs. 328, respectively.
Sampath Bank follows the same pattern revealing unchanged Dollar rate at Rs. 318 and Rs. 328, respectively.
Colombo (LNW): Lawyers from all corners of the country today (09) united in front of the Hulftsdorp court complex in objection to the government’s move of interfering with the Judiciary.
It was noteworthy that lawyers from the North-East have also joined hands with the protest and raised their voice for democracy.
Demanding justice for Judge T. Saravanarajah, the former Mullaitivu District Judge who resigned due to being threatened with his life, independence of the Judiciary, and an end to the controversial Anti-Terrorism Bill, the Online Safety Bill and the Broadcasting Bill in the name of democracy were some of their slogans.
The protest was attended and endorsed by many lawyers from all over the country.
Colombo (LNW): Sri Lanka’s tourism sector has surged ahead in 2023, with earnings totalling nearly $ 1.5 billion in the first nine months of the year, alongside a notable influx of over 1.01 million visitors.
The latest data from the Central Bank reveals that tourism earnings in the third quarter of 2023 were over $ 1.45 billion, reflecting a staggering 67% surge from the corresponding period of last year.
September earnings stood at $ 152.2 million but witnessed a 28% dip from August. This dip is attributed to September falling short of its monthly arrivals target.
In a month-to-month comparison, both August and September fell short of their monthly arrivals target, despite July surpassing projections and generating a remarkable income.
This $ 219 million makes July the highest monthly earnings of 2023 thus far.
Separately, a faction of the industry contends the data highlights a pronounced decline in earnings since the announcement of the minimum room rate (MRR) in June, signalling the impact of this policy shift on the industry’s revenue streams.
“The dip in earnings unequivocally indicates that the enforcement of MRR has had a substantial impact on the industry as a whole.
This demonstrates that visitors were quite sensitive to the price hike introduced to the city hotels and has impacted the high earning segments like MICE tourism,” they argued.
Despite enduring significant challenges following the Easter Sunday attacks in 2019, Sri Lanka’s tourism sector has not only weathered the storms but emerged more robust.
This resurgence is vividly reflected in the surge of arrivals, which reached an impressive 1.01 million in the first nine months of 2023, a stark contrast to the crisis-ridden figure of 29,802 in 2022.
However, when benchmarked against the pivotal year of 2018, the industry still grapples with a 25% deficit.
Analysts view this upward trend in arrivals as a promising sign for an industry that has navigated a series of hurdles over the past three years.
With cautious optimism, Sri Lanka Tourism is intensifying efforts to further stimulate the sector, to regain pre-crisis levels of activity in the coming years.
Sri Lanka Tourism’s anticipation is running high for the winter season, as the sector sets ambitious targets of welcoming 1.55 million visitors and generating over $ 3 billion in income by year-end.
“Achieving these milestones would mark a significant triumph in the industry’s path to recovery,” analysts said.
Colombo (LNW): Sri Lanka continues to sustain a near US $ 1 billion trade deficit as evidenced by August external trade data released recently.
By end July cumulative trade deficit was $ 971 million whilst in August it amounted $ 925 million. In the first eight months of this year.
The cumulative deficit in the trade account narrowed to $2,964 million from $3,889 million recorded over the same period in 2022, due to a larger decline in imports offsetting the decline in exports, the Central Bank said.
In recent months however, the difference in the deficit has narrowed. In the first quarter of this year the deficit was better at $ 861 million, low er by $ 1.5 billion from $ 2.4 billion in the 1Q of last year.
In the first half the deficit was $ 2.28 billion, less than $ 1.2 billion as against $ 3.5 billion a year ago.
However in August the deficit in the merchandise trade account widened to $ 307 million, compared to $ 260 million recorded a year ago.
Overall exports: Earnings from exports in August 2023 marked the highest monthly earnings so far in 2023.
However, earnings from merchandise exports declined by 8.7% in August 2023, YoY, to $ 1,119 million.
The decline in export earnings was mainly driven by industrial exports, particularly garments, due to a continued slowdown in external demand.
Cumulative export earnings during January to August 2023 also declined by 10.1% over the same period in the last year, amounting to $ 8,010 million.
Industrial exports: Earnings from the export of industrial goods continued to witness a decline in August 2023 as well, compared to a year earlier, and a significant share of this decrease can be attributed to garments, which offset the increase recorded in export of transport equipment.
The export of garments recorded a 20% decline during the eight months ending August 2023, recording a decline in earnings from most of the major markets (the USA, the EU and the UK).
Moreover, there was a substantial downturn in the export of rubber products (mainly, tires and gloves); and animal fodder (mainly, wheat residues); among others.
Expenditure on merchandise imports declined by 4.0% (YoY) to $ 1,426 million in August 2023.
However, a marginal increase in import expenditure is observed from June 2023 onwards, on a month-on-month basis, partly supported by the relaxations of import restrictions.
The decline in import expenditure was primarily driven by intermediate goods, despite expenditures on consumer goods and investment goods imports recorded an increase.
Cumulative import expenditure during January to August 2023 declined by 14.3% to $ 10,974 million, compared to the same period in the previous year.
Colombo (LNW): The Government has embarked on an ambitious 10-year initiative aimed at boosting agriculture and tourism in the Eastern Province, with a particular focus on the development of Trincomalee.
Plans will be devised soon to harness the untapped potential of the Mahaweli A and B zones in the Batticaloa district, previously overlooked by Mahaweli projects.
Additionally, a comprehensive tourism strategy spanning from Nilaweli to Panama is set to be implemented.
President Ranil Wickremesinghe made these announcements during his attendance at the 149th anniversary celebration of Chenkaladi Madhya Maha Vidyalaya in Batticaloa recently.
The proposed 10-year plan for the Batticaloa district is poised to bolster its economic vitality.
While President J.R. Jayawardene initially intended to leverage the Mahaweli initiative for regional development, but the shadow of war prevented its realization.
Today, a new vision emerges as government plans to transform Trincomalee into a thriving city, in collaboration with India, tapping into mineral resources and creating a bustling trade hub.
In Katunayake, Biyagama, there exists a 400-acre investment zone, but Trincomalee has set its sights on establishing an expansive 1000-acre investment zone.
A systematic development plan for the Trincomalee Port has been prepared by a Singaporean company Surbana Jurong and the govenmnt is determined to see it through.
This ambitious endeavour will transform Trincomalee into a major city and a robust economic hub.
Concurrently, the government has recognised the importance of agricultural development. Plans are underway to harness the untapped potential of the Mahaweli A and B regions in the Batticaloa district, previously overlooked by Mahaweli projects.
The aim is to create a modern agricultural industry in this area. The province has achieved self-sufficiency in rice production and we are actively working to diversify our crop portfolio.
Increasing liquid milk production through the introduction of new livestock management practices is also on the horizon. The government is seeking support from local companies like Ambewela in Sri Lanka and international firms to achieve this goal.
To bolster tourism in the Eastern Province it has been mapping out a tourist zone spanning from Nilaveli to Panama. Plans include the development of forest and lake areas to enhance the tourism experience.
Over the next 10 years, our focus remains on the comprehensive development of Trincomalee city, revitalizing the Mahaweli A and B regions, modernizing agriculture and promoting tourism.
These efforts are poised to usher in a new era of economic prosperity in these provinces. Additionally, addressing the concerns of dairy farmers is a top priority.
