Mrs. Diana Gamage, the Minister of State for Tourism announced plans to launch promotional campaigns aimed at attracting 1.5 million foreign tourists to Sri Lanka by the year’s end. She emphasized the government’s commitment to ensuring the safety of tourists and mentioned initiatives such as establishing taxi associations to enhance the visitor experience.

Speaking at a press conference themed ‘Collective path to a stable country’ at the Presidential Media Centre  (27), Minister Diana Gamage also highlighted the transformation of high-tourist-traffic cities into vibrant, non-stop destinations.

Mrs. Diana Gamage who further commented said:

Today, we celebrate International Tourism Day and the Ministry of Tourism has orchestrated a graceful commemoration of this occasion. In conjunction with this special day, we have proudly introduced the ‘Jaya Sri Lanka’ award, which recognizes the exceptional culinary expertise of Dr. Pabilis Silva, a journey that took him from humble beginnings to the prestigious position of head chef at the Mount Lavinia Hotel. This award holds great significance, underscoring the importance of acknowledging the often-overlooked profession of chefs in our nation.

In comparison to the previous year, we have witnessed a remarkable surge in tourist arrivals during the first nine months of this year, with approximately one million foreign visitors gracing our shores. We hold high expectations that this number will soar to 1.5 million by year-end, and accordingly, we have charted out plans for special promotional events to attract even more tourists.

With the onset of winter in Europe just two months away, we anticipate a substantial influx of tourists during the final months of the year. Our aim is to draw a significant number of visitors from European countries, including England. Furthermore, we are actively working on enticing tourists from Middle Eastern nations, with an expected influx as early as next month. Our ministry is diligently planning tailored promotional campaigns to engage these markets effectively.

Ensuring the convenience and satisfaction of tourists is paramount. Particularly in popular destinations like Ella, Nuwara Eliya, Galle and Colombo, we are committed to providing essential night-time facilities to cater to their needs. We also aspire to transform tourist-centric cities into vibrant, 24/7 hubs by revising certain regulations to facilitate tourist spending. Our goal is to create an environment where tourists are encouraged to contribute to our nation’s economic growth.

Moreover, our responsibility extends to the safety of tourists. To address this, stringent legal actions will be taken against local businesses engaging in unfair and illegal pricing practices targeting tourists. We encourage foreign visitors to act as if they plan to return to our country, fostering a positive and respectful atmosphere.

Additionally, we are in the process of establishing taxi associations to enhance the convenience and safety of tourists, thus curbing illegal activities. The Ministry of Tourism is fully dedicated to this cause and has placed it under its special attention.

The cabinet has granted approval for the hemp cultivation proposal, aimed at bolstering the country’s foreign exchange reserves.

Consequently, it is anticipated that the corresponding official gazette notification will be issued within the next two weeks.

This initiative is not merely intended to generate revenue in rupees but rather to establish a framework that generates income in dollars. To achieve this goal, the establishment of an authoritative body is envisaged, operating within investment promotion zones under a comprehensive regulatory framework.

Acting Finance Minister Shehan Semasinghe announced that negotiations to secure the second tranche of funding from the International Monetary Fund (IMF) are progressing positively. He emphasized that the government’s economic reform efforts are currently under evaluation by the IMF.

Furthermore, Minister Semasinghe noted that discussions to finalize the staff level agreement required for receiving the second instalment are anticipated to take place after President Ranil Wickremesinghe’s official visit to Germany.

Minister Semasinghe made these statements during a press conference held at the Presidential Media Centre yesterday (28), under the theme ‘Collective Path towards a Stable Country.

The Minister further said :

President Ranil Wickremesinghe recently held crucial discussions with the IMF team currently in Sri Lanka, during which they conducted a special assessment of the country’s economic situation. The IMF team expressed appreciation for the economic reforms undertaken thus far.

“It is expected that negotiations to secure the staff level agreement will take place after President Ranil Wickremesinghe returns to the country following his official visit to Germany. Further negotiations are scheduled under the President’s chairmanship.

The IMF team has provided a positive review of Sri Lanka’s current financial situation. We believe that, after reaching a staff level agreement, future work will proceed robustly.”

“Comparing to the previous year, the government revenue has seen a remarkable growth of 43%. The process of tax collection plays a pivotal role in bolstering government revenue. In addition to those already within the existing tax net, we are also focusing on individuals who are obligated to pay taxes. The IMF has also directed its attention towards government tax revenue.

Furthermore, the IMF has praised the efforts of the country’s citizens in implementing new economic reforms. The local debt optimization program is nearing its completion and discussions regarding foreign loans are already in progress with all creditors.”

“While some groups have claimed that Sri Lanka has been isolated in foreign debt optimization discussions, it’s important to note that no country has declared its unwillingness to support us under the foreign debt optimization program. These countries are actively engaged in discussions with us. We are confident that after completing the domestic debt optimization work, progress on foreign debt optimization will also be swift.”

“Everyone should maintain a positive outlook on this.

This year, our economic situation has significantly improved compared to a year ago. Inflation, which stood at 70% then, has now decreased to 1.3%, providing a substantial boost to our country’s economy.

Last year, the interest rate on treasury bills in the domestic market was as high as 30%. Today, it has reduced to 13%. This reduction is a significant advantage for our treasury.

Furthermore, our foreign reserves have increased and we are witnessing an upturn in tourism. Additionally, remittances from Sri Lankans abroad have resumed their normal flow. With the on-going economic development, we have laid out plans to continue our economic growth roadmap for the upcoming year without any hindrances.”

“As a nation, our path forward should prioritize sustainable economic growth and a positive mind-set is crucial. Economic reforms, which should have been initiated two decades ago, are now in progress. History has shown that many small countries achieved significant development through such reforms.

It’s important to acknowledge that we are currently navigating challenging times as a nation. If the President’s economic reform program continues on this trajectory, Sri Lanka can evolve into a nation with a robust economy in the future. Strengthening the economy may not align with the interests of groups pursuing narrow political gains, but with the anticipated second instalment from the International Monetary Fund, we can steer our country toward a positive economic outlook by 2024.”

By: Staff Writer

Colombo (LNW): The Government has appointed 10 Public Expenditure Review Committees (PERC) comprising five or six members each with the aim of rationalizing state expenses through a systematic review to strengthen the country’s fiscal consolidation and economic recovery process, the Finance Ministry announced.

The Cabinet of Ministers at its meeting held on February 6, 2023 decided to appoint these committees with the participation of public and private sector experts to rationalize the government expenses of 10 key Ministries using the Zero-Based Budgeting Approach (ZBB).

The aim is to strengthen the fiscal consolidation process and support the economic recovery process, a senior official of the Ministry told the Business Times. There are several drawbacks in the long-standing budgeting practices adopted in Sri Lanka. Over the years, this has resulted in finances being allocated for redundant activities, duplications and unproductive functions.

As a result, there are often insufficient funds for core activities and functions of key line ministries. The prevailing fiscal crisis has made it all the more important to allocate scarce resources in the most efficient and productive way possible, the ministry statement highlighted.

In most cases, the annual budget is prepared on the basis of incremental adjustments to the previous year’s budget, without a rigorous review of the rationale and efficacy of past resource allocations.

With this major public finance reform to introduce Zero Based Budgeting, it will become necessary for line ministries to provide justifications for resource allocations regardless of previous years’ budgeted allocations the Ministry revealed.

Accordingly, finances will only be allocated following a clear evaluation of needs, costs, and associated benefits of such spending.

PERC will review all programmes/projects of each line Ministry and ascertain whether the core activities are in accordance with the mandate of the Ministry.

Moreover, PERC will identify duplications, wastage, and redundant expenditures, and prioritize all activities as per their potential for achieving objectives of the Ministry as well as national policies.

In addition to that, they will introduce short, medium, and long-term reforms to be implemented by each Ministry, with a view to optimizing productivity and cost effectiveness in their service delivery.

These committees have been appointed to oversee accounting procedure and control public expenditure in the Ministry of Transport and Highways, Ministry of Urban Development and Housing, Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government, Ministry of Defence Ministry, of Public Security, Ministry of Education, Ministry of Health, Ministry of Agriculture, Ministry of Plantation Industries and Ministry of Irrigation.

Ms. Aruni Wijewardane who was in retirement was brought back from retirement by the then President Gotabaya Rajapakse and appointed as the Foreign Secretary on the recommendation of a politician .  She assumed duties as Secretary to the Ministry of Foreign Affairs on 22 May 2022. She was a career diplomat . So much was expected from her as Foreign Secretary .

But according to several retired and serving officers. She is frequently embarking on foreign trips  ( In September alone- Cuba, US now Germany)  whilst the foreign ministry is sinking . She does not share the travel opportunities with other officers. We don’t want to list out the trips she has undertaken so far and the cost to the tax payer at a time when the country needs to preserve the foreign exchange. They noted she loves travel, the media and likes to be pictured with the president  overseas with world leaders. What value has her trips had for the government and the people of Sri Lanka? Talk of one grant she got for Sri Lanka?  A parliamentarian suggested that a debate is required at the way the foreign ministry is currently run. The secretary has been out of the country for over weeks.

The work of the ministry, (leave alone the cost of her overseas travel) is in a mess they noted. Several missions have no heads . Further they note she travels with a huge contingent of protocol officers . Again we refrain publishing the numbers. They told LNW one person is assigned to make sure of her seating and arrival, rooms etc are in order. She is acting as though she is the Minister , given that the Minister is new to diplomacy. This was evident in his recent outburst with regard to Prime Minister Justin Trudeau of Canada . Bankrupt Sri Lanka does not need any disputes with any nation at this time. A kindergarten child would tell you this. The Administration in the foreign ministry when it comes to appointments is done at her whims and fancy. Moreover she is not a good at administration.  Those not in favor with her are not given good postings. She is a law unto herself, some noted . The biggest drawback,  there is very little economic diplomacy they noted .

She is focused on foreign visits and meeting foreign dignitaries. The foreign ministry needs according to some observers a high caliber young officer who understands global trends and technology . Someone who understands commerce and business given Sri Lanka’s sorry economic plight.  President Wickramasinghe will do himself a big favor they noted if he focuses more on the efficiency of the ministry and the missions Sri Lanka has globally, that sucks up the millions of USD that our hard working house maids keep remitting for our half baked diplomats to sip wine in cocktail circles and ride in Mercedes and BMWs and educate their children overseas. The country badly needs demonstrable results and to prune costs as the IMF put it bluntly at a press conference this week. 

Adolf

The National Audit Office has revealed that government officials involved in fraud and corruption are now subject to surcharges under the provisions of the new Audit Act. These surcharges apply to individuals found guilty of causing financial loss to the government through fraudulent activities, corruption, and discrepancies, contravening existing laws.

The National Audit Office possesses the authority to issue orders to the Chief Accounts Officer for implementing these surcharges. While several government officials who are liable for surcharges have been identified, they have the option to appeal against the surcharge imposition. To address these appeals, an Appeals Committee must be established, but as of now, the Constitutional Council has not appointed such a committee.

The implementation of surcharge orders will be delayed until the Appeals Committee is established and operational.