Colombo (LNW): State Minister for Provincial Council and Local Government, Janaka Wakkumbura, revealed that President Ranil Wickremesinghe has earmarked Rs. 1,500 million for the “Greater Kandy Urban Development Programme” in the current year’s budget.
During a Press Briefing at the Presidential Media Centre (PMC) themed ‘Collective Path to a Stable Country’ held today (29), the State Minister disclosed that Rs. 1,000 million has been allocated for a special project aimed at tourism development, with the involvement of local authorities to facilitate tourists.
Expanding on future plans, the State Minister outlined a comprehensive development programme slated for 2024, backed by a substantial budget exceeding Rs. 34,000 million covering all nine provinces. The ambitious goal is to complete these development projects by December of the following year.
Noteworthy is the allocation of Rs. 7,000 million for infrastructure development in the North, North-East, Uva, and North Central provinces. Additionally, Rs. 600 million is designated to address deficiencies in local government institutions.
Under the guidance of President Ranil Wickremesinghe, a special project has been initiated with a Rs. 1,000 million allocation to enhance facilities through local government bodies, focusing on tourism development.
There is optimistic anticipation for a Rs. 1,500 million development project, complemented by a Rs. 500 million contribution from local government agencies.
President Ranil Wickremesinghe has specifically allocated Rs. 1,500 million in this year’s budget for the “Greater Kandy Urban Development Programme,” primarily for enhancing the road leading to Kandy city.
Addressing a related issue, approximately 3,000 public servants who submitted nominations for local government elections have had their concerns addressed. A cabinet paper has been submitted to review their appeals and reinstate them, with an expected reemployment within a month, under the condition of refraining from engaging in political activities.
Additionally, around 2,700 vacant positions for ‘Grama Seva’ officials are scheduled for examination by December 2nd, with efforts to appoint them before February 4th, 2024. A significant step has also been taken to convert 8,400 casual employees in local government institutions into permanent staff through mandatory employment arrangements.
Colombo (LNW): The Official Creditor Committee, co-chaired by Japan, India, and France, has officially endorsed the Agreement in Principle on specific financing terms for the restructuring of Sri Lanka’s debt, aligning with the debt restructuring parameters established in the International Monetary Fund (IMF) programme, announced the Finance State Minister Shehan Semasinghe.
Minister Semasinghe highlights that achieving consensus among all of Sri Lanka’s creditors to restructure the debt marks a crucial milestone and represents a significant stride towards resolving the economic crisis in Sri Lanka.
“We are very grateful to all bilateral creditors for their cooperation,” he stated, adding that China Exim Bank had previously agreed to restructure its debt.
“This is a very significant milestone, as, along with a similar agreement in principle provided earlier by China Exim Bank, it confirms that all of Sri Lanka’s official creditors have agreed to restructure Sri Lanka’s debt, which is a major step in the resolution of Sri Lanka’s economic crisis.”
As per the Finance Ministry, the Official Creditor Committee’s agreement encompasses approximately $5.9 billion of outstanding public debt and includes a combination of a long-term maturity extension and a reduction in interest rates.
Minister Semasinghe indicated that the Official Creditor Committee’s agreement now sets the stage for the IMF board to release the second tranche of $334 million after the completion of the first review of the International Monetary Fund’s Extended Fund Facility programme expected in December.
“This would unlock the next tranche of IMF funding, which, in turn, would enable other partners such as the World Bank and Asian Development Bank to provide further financing,” he added.
Crucially, this development serves as a noteworthy indication of the ongoing cooperation and support from the global community in Sri Lanka’s economic recovery.
The Minister affirmed Sri Lanka’s commitment to implementing a comprehensive reform program aimed at restoring macroeconomic stability and placing the country on a path of sustainable and inclusive economic growth.
He mentioned that subsequently, Sri Lanka, through its financial advisors, will continue to engage in good faith with its external private sector creditors to reach a similar agreement in principle.
Colombo (LNW): The Excise Department revealed that the production of liquor at two major distilleries in the country has been temporarily halted due to their delayed tax payments.
W.M. Mendis & Co Ltd and Randenigala Distilleries Lanka (Pvt.) Ltd. experienced a suspension in alcohol production, but the Excise Department later announced their authorisation to resume operations after a payment of Rs. 116 million.
Earlier this month, the licenses of these distilleries, along with three others, were suspended for the same reason.
On November 2, the distillery licenses of Synergy Distilleries (Pvt.) Ltd., Finnland Distilleries Corporation (Pvt.) Ltd., Wayamba Distilleries, W. M. Mendis & Co. Ltd., and Randenigala Distilleries Lanka (Pvt.) Ltd. were all temporarily suspended due to non-payment of taxes.
Colombo (LNW): Speaker Mahinda Yapa Abeywardana is anticipated to disclose the Privilege Committee’s ruling regarding State Minister Diana Gamage and fellow MPs in relation to the recent altercation this (30) morning.
The committee, which investigated the physical altercation involving Gamage, along with Opposition MPs Rohana Bandara and Sujith Sanjaya Perera, within the Parliament lobby, has submitted its findings to the Speaker for announcement.
Colombo (LNW): The Sri Lanka Foreign Employment Bureau (SLFEB) has made a substantial contribution of Rs. 7 billion to the Treasury this year, as Minister of Labour and Foreign Employment Manusha Nanayakkara formally presented a Rs.4 billion cheque to President Ranil Wickremesinghe at the Presidential Secretariat yesterday afternoon (29).
Given the current economic conditions in the country, this significant amount has been allocated from the operating surplus received by the Foreign Employment Bureau. The funds are earmarked for critical activities, including the procurement of essential medicines and the disbursement of government employee salaries.
Of the Rs. 7 billion, a noteworthy sum of Rs.33 billion was directly handed over to the President earlier this year. Additionally, an extra allocation of Rs. 100 million was designated for Apeksha Hospital Maharagama for medicine procurement.
While the Foreign Employment Bureau has previously contributed substantial amounts, with Rs. 3,382 million being one such instance, this Rs. 7 billion contribution represents a remarkable milestone, marking the Bureau’s highest annual contribution within a single year to date.
The occasion was attended by Secretary to the Ministry of Labour and Foreign Employment R. P. Wimalaweera, Chairman of the Sri Lanka Foreign Employment Bureau Hilmi Aziz, and a delegation of senior officials.
Following this, a comprehensive review of the Ministry of Labour and Foreign Employment’s progress in 2023 was conducted. Minister Manusha Nanayakkara briefed the President on key ongoing initiatives, including the “Garu Saru” programme aimed at dignifying individuals in the informal sector in Sri Lanka with a focus on social security programmes. The Minister also highlighted efforts to integrate these individuals into the labour market’s information system.
In addressing challenges associated with the professional guidance activities under the smart club programme of Expatriate Workers’ Associations and the implementation of a licensing system for the import of electric cars, Minister Nanayakkara aimed to enhance the inflow of foreign remittances into Sri Lanka.
The Minister shared achievements, such as receiving US$ 7.5 billion in remittances over the past 18 months, and updated the President on initiatives like the introduction of a pension system for expatriate workers and the establishment of a dedicated terminal for departing workers at the airport.
President Wickremesinghe acknowledged the pivotal role of expatriate workers’ remittances as a primary source of foreign exchange for Sri Lanka. He commended the proactive programme of the Ministry, led by Minister Manusha Nanayakkara, and praised the efforts to reform labour laws through the introduction of the new Employment Security Act.
Colombo (LNW): In his address at the 2023 Sri Lanka Economic Summit, President Ranil Wickremesinghe underscored the critical need for profound economic restructuring to secure the long-term sustainability of the country’s economy.
The Head of State emphasised the imperative of maintaining a steadfast commitment to a new economic policy framework, asserting that such dedication is crucial in preventing the recurrence of economic crises.
The summit, organised by the Ceylon Chamber of Commerce and hosted over two days at the Shangri-La Hotel in Colombo, kicked off on Tuesday (Nov. 28). President Wickremesinghe used the platform to highlight the achievements resulting from the radical economic restructuring undertaken in the past year and presented a comprehensive roadmap for the nation’s economic future.
Commencing his keynote address, Wickremesinghe acknowledged the summit’s theme, “Economic Reform for 2023,” setting the tone for discussions on the imperative economic changes needed for the year ahead.
He questioned whether the transformative measures taken could be labelled as mere reforms, asserting that the changes implemented were more accurately described as a radical restructuring with no possibility of reverting. “It’s a restructuring and a radical restructuring, and there’s no going back,” stated the President, underscoring the irreversible nature of the economic changes.
The president highlighted the progress made in the economy through the government’s radical restructuring efforts over the past year. He stressed the importance of continuing these efforts and working within the framework of the new economic policy to elevate the country to a robust economy resistant to potential downturns. Wickremesinghe’s vision for the economic future relies on the dedication and collaboration of all stakeholders within the specified policy framework.
One of the key achievements mentioned by the president was the successful negotiation with creditors over the country’s debt. He acknowledged the cooperation of all creditor groups and commended their constructive engagement. Notably, negotiations with China Exim Bank resulted in an agreement in principle to restructure the country’s debt, signalling a positive step forward in the economic stabilisation process.
Wickremesinghe highlighted the government’s transparent and good-faith negotiations with creditors, dispelling expectations of challenges in the process. He specifically mentioned the engagement with the Official Creditor Committee and China Exim Bank, showcasing Sri Lanka’s ability to navigate complex negotiations successfully.
The president expressed optimism that the IMF Board would conclude the first review of Sri Lanka’s EFF program within the month of December.
Wickremesinghe outlined the ongoing discussions with external private creditors, emphasising the government’s commitment to reach an agreement on specific restructuring terms with them shortly. A focal point of the restructuring strategy is a reliance on a long-term extension of the debt, with economic principles guiding future negotiations and operations.
In his address, Wickremesinghe touched upon the necessity of adhering to the agreed-upon framework, stressing that deviation could lead to adverse consequences with creditors. He urged the nation to embrace the radical restructuring as a last chance for economic stability, emphasising the need to break away from the cycle of seeking external aid due to mismanagement.
Addressing concerns about consensus, the president acknowledged the challenges of obtaining agreement from political parties and trade unions. He argued that a consensus with those who had not taken responsibility in the past was difficult to achieve. The President called for a united front in recognising the gravity of the economic situation and urged the country to agree on the proposed framework.
Wickremesinghe drew attention to the dangers of remaining a “beggar nation” and the unsustainable practice of seeking financial assistance without addressing the root causes of economic instability. He questioned the wisdom of repeatedly asking other countries for help, emphasising the need for internal reform and competitiveness.
Wickremesinghe underscored the importance of a competitive, export-oriented economy, outlining the government’s vision for a digitalised and green economy. He drew parallels with the economic reforms of 1977, emphasising the need for a new era of economic policies that align with the current global landscape.
Following his address, the president participated in a panel discussion moderated by the Chairman of the Sri Lanka Chamber of Commerce, Duminda Hulangamuwa. The panel included Mr. Montek Singh Ahluwalia, Former Deputy Chairman of the Planning Commission of India.
Colombo (LNW): The Sri Lankan government has announced that it has reached an agreement in principle with its Official Creditor Committee (OCC) on the financial terms of a debt treatment.
Issuing a statement, the Ministry of Finance, Economic Stabilization and National Policy stated that the agreement in principle covers approximately US$ 5.9bn of outstanding public debt and consists of a mix of long-term maturity extension and reduction in interest rates.
The Sri Lankan government has commended the support and cooperation of OCC members in reaching this agreement, which demonstrates a mutual commitment to restoring public debt sustainability in line with the International Monetary Fund (IMF) program targets, the statement mentioned.
The agreement is expected to facilitate a swift approval by the IMF Executive Board of the First Review of Sri Lanka’s IMF-supported program, allowing for the next tranche of IMF financing of about US$ 334 million to be disbursed.
The agreed-upon debt treatment terms will be further detailed and formalized in a Memorandum of Understanding (MoU) between Sri Lanka and the OCC, which will then be implemented through bilateral agreements with each OCC member, in accordance with their laws and regulations.
The Sri Lankan government looks forward to a prompt implementation of the agreed terms, the Finance Ministry said.
Speaking in this regard, Secretary to the Treasury/Ministry of Finance, Economic Stabilisation and National Policies, K. M. Mahinda Siriwardana said:
“This agreement marks a landmark step for Sri Lanka. We extend our sincerest thanks to the OCC and its co-chairs, Japan, India and France, for the unwavering support in resolving our country’s public debt situation. This agreement serves as a key milestone in Sri Lanka’s ongoing endeavour to achieve public debt sustainability and to foster economic recovery.”
The Finance Ministry said this agreement in principle, together with the agreement in principle reached last month with China Export-Import (Exim) Bank, goes a long way in dealing with Sri Lanka’s external bilateral debt restructuring.
The next steps will include finalizing similar agreements with our remaining official bilateral creditors, including Saudi Arabia, Pakistan, Kuwait and Iran, altogether representing a further US$ 274 million of outstanding claims, the statement read further.
Sri Lankan government says it now intends to focus its efforts on reaching comparable debt restructuring agreements with external commercial creditors, and in particular with its holders of international sovereign bonds. “Good faith engagement is still ongoing in that regard, and the authorities would like to invite its bondholders to now accelerate the discussions with a view to coming to a mutually acceptable agreement as promptly as possible.”
The authorities have reaffirmed their commitment to transparency, comparable treatment of all participating external creditors, and full compliance with the debt sustainability targets under the IMF-supported program.
Earlier today, the OCC confirmed that it has reached an agreement with Sri Lanka on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF.
Prime Minister Dinesh Gunawardena addressed Parliament, revealing the discovery of a fraudulent scheme exploiting his name, purportedly offering jobs in Denmark to Sri Lankan youth. He informed the assembly that the Criminal Investigation Department has initiated an inquiry into this racket.
The Prime Minister clarified that he bears no involvement in this deceptive operation. He highlighted that the group behind this illicit activity falsely promised employment opportunities in Denmark to young individuals, deceiving them into paying Rs. 600,000 each.
Opposition Leader Sajith Premadasa raised concerns about this issue during the parliamentary session. While expressing his disbelief in the Prime Minister’s involvement, he highlighted the ongoing program orchestrated by an individual and a group falsely claiming affiliation with the Prime Minister’s Coordinating Secretary. Premadasa urged for a thorough investigation into this matter to uncover the truth behind the fraudulent scheme.
Officials from the Inland Revenue Department have emphasized the significance of adhering to the existing Inland Revenue Law, which mandates the submission of annual income reports for the assessment year 2022/2023 by November 30th, covering the period from April 1st, 2022 to March 31st, 2023. Failure to meet this deadline will result in penalties, with a fine of 50,000 rupees and an additional 5% of the tax payable for individuals maintaining tax files without submitting the report on time.
These remarks were made during a workshop organized by the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis, held in Parliament with support from the Inland Revenue Department. Chaired by Hon. Gamini Waleboda, Member of Parliament and Committee Chair of the Sectoral Oversight Committee, the workshop saw attendance from State Ministers, MPs, and parliamentary officials. Representatives from the Inland Revenue Department, including Senior Commissioner Sujeewa Senadheera, Senior Deputy Commissioner Nandana Kumara, and Senior Deputy Commissioner M.H.D. Meneripitiya, provided detailed briefings.
The workshop aimed to educate attendees about the implications of the current income tax law, specifically highlighting the necessity of income reports and the consequences associated with failing to provide them. Notably, it was disclosed that income tax files have been initiated for all Members of Parliament, with practical guidance provided on completing the income report through the Inland Revenue Department’s website and submitting it online to the department’s system.
Members of Parliament actively engaged with officials during the workshop, seeking clarifications on potential issues that might arise during the report submission process.
Save the Children, in collaboration with the United States Department of Agriculture (USDA), is set to embark on the second phase of the PALAM/A initiative, injecting a substantial US$32.5 million. This program aims to expand the integrated Food for Education Programme, focusing on enhancing literacy and nutrition for over 200,000 schoolchildren in 917 primary schools and 20,000 preschoolers across eight districts in Sri Lanka.
The project aligns with ongoing efforts to bolster the National School Nutrition Programme in partnership with the Sri Lankan government, emphasizing sustainable strategies for improved learning outcomes.
Beyond alleviating short-term hunger among school-age children, this initiative aims to heighten student attendance, elevate literacy instruction quality, enhance classroom attentiveness, and instill healthy dietary habits. This comprehensive approach seeks to address the educational and nutritional challenges accentuated by Sri Lanka’s economic crisis since 2022, promising a brighter future for the nation’s children.
Save the Children’s earlier PALAM/A Project successfully reached 95,000 children in 852 schools across seven districts, collaborating effectively with Sri Lanka’s key ministries, including Education, Health, and Finance Economic Stabilisation and National Policies. The project not only improved access to nutritious meals but also notably enriched the overall learning environment.
Julian Chellappah, Country Director of Save the Children’s Sri Lanka Country Office, reaffirmed their dedication to Sri Lankan children, emphasizing the commitment to nurturing young learners’ potential.
U.S. Ambassador to Sri Lanka, Julie Chung, praised the collaboration, highlighting the total USDA contribution to child nutrition in Sri Lanka reaching US$60 million. She underscored the program’s significance in equipping Sri Lankan children with essential tools for success, emphasizing the robust bond between the United States and Sri Lanka.
Education Minister Dr. Susil Premajayantha emphasized the pivotal role of education in the nation’s progress, acknowledging the joint efforts of the USDA and Save the Children in shaping a promising future for Sri Lankan children.
Micah Olad, Chief of Party for Save the Children’s PALAM/A Project, expressed confidence in the initiative’s ability to drive positive change, building upon past achievements and envisioning a more substantial impact on children’s lives in Sri Lanka.
The ongoing commitment of Save the Children and USDA underscores their dedication to advancing the well-being of Sri Lankan children, with the PALAM/A Project standing as a beacon of hope for a brighter future.
