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Sri Lanka and India to resume ETCA negotiations soon

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By: Staff Writer

Colombo (LNW): The Chief Negotiators of Sri Lanka and India held talks to resume Economic and Technology Cooperation Agreement (ETCA) negotiations years after it was stopped following political-led opposition in 2016.

“The Chief Negotiators of Sri Lanka and India recently held a virtual meeting on September 19th to discuss the resumption of Economic and Technology Cooperation Agreement (ETCA) negotiations,” the President’s Media Division said in a statement.

“This marks the continuation of talks after 11 previous rounds of negotiations.”

Both South Asian neighbour already have a Free Trade Agreement (FTA) in place with India is earning more foreign exchange in the trade.

Former president Mahinda Rajapaksa-led nationalist Sri Lanka Podujana Peramuna (SLPP) party and some of professional bodies backing the party opposed the ETCA when it was scheduled to be signed.Later, the signing was postponed, but never took place.

President Ranil Wickremesinghe is backed by the SLPP after mass protested against the party and Rajapaksa family members forced them out of the offices.

Analysts say ETCA was used for political mileage by SLPP triggering an anti-Indian sentiment when it was the opposition without properly assessing its threats and opportunities.

The SLPP-led government under ousted president Gotabaya Rajapaksa also unilaterally suspended an FTA signed with Singapore, citing that it was a threat for Sri Lanka’s service.

Data, however, show Sri Lanka has gained from the FTA with India.India was Sri Lanka’s largest trading partner with an overall bilateral merchandise trade of $ 5.45 billion in 2021.

Sri Lankan exports to India have increased since 2000 when the FTA came into force.

he Indo-Lanka Free Trade Agreement (FTA) is to be upgraded to an Economic and Technology Co-operation Agreement (ECTA).

President Ranil Wickremesinghe said that ECTA is essential as India is going to be the next growth center and will trigger off growth in South Asia.

“We are just 22 miles away and we have to work especially to ensure that the synergies of Sri Lanka and Tamil Nadu are brought together,” the President said.

He said that Sri Lanka aims to achieve a significant development goal in the next 25 years by working alongside other countries in the Indian Ocean and South Asia.

President Wickremesinghe said that as a small country with a strong democratic tradition and an open economy, Sri Lanka has always maintained its political independence and viewed India, its closest neighbor with the longest relations, as the protector of the region.

The President also highlighted Sri Lanka’s role in building a new economy by collaborating with the development of the Asian region and India, moving away from the old economy.

He suggested that the free trade agreement with India should be elevated to an economic cooperation and technical agreement and expressed his willingness to enter into an agreement with the largest trade group in Asia, the Regional Comprehensive Economic Partnership, which would allow Sri Lanka to continue trading with the largest trade group in the world.

President Wickremesinghe said that Sri Lanka’s access to the growing Indian and African markets should not be disrupted by any big power rivalry or conflict.

Govt repays US $250 million to Bangladesh settling loan plus interest

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By: Staff Writer

Colombo (LNW): Sri Lanka has paid off US$ 50 million more to Bangladesh as the final installment of a US$ 200 million loan taken under a currency swap agreement two years ago, surprising the Bangladeshi authorities by sticking to its obligations, official sources aid.

Bangladesh was surprised over a quick repayment of a loan borrowed during a currency crisis, Bangladesh Prime Minister Sheikh Hasina has told Sri Lanka president Ranil Wickremesinghe, his office said in a statement recently.

Citing a senior Bangladesh Bank official, The Daily Star said the Sri Lankan government has also paid US$ 4.5 million as interest on the loan amount on Thursday (Sept. 21).

Sri Lanka repaid USD 100 million on September 02, 2023, and USD 50 million more on August 17, 2023.

The island nation paid back the loan as its embattled economy is heading towards recovery from its worst economic crisis just a year ago. Its inflation rocketed to 69.8 percent in September last year. In July, however, inflation stood at 6.3 percent.

On the other hand, Bangladesh is facing a foreign exchange crisis after its reserve dropped sharply in the past one and a half years owing to higher import bills compared to lower-than-expected remittance and export earnings.

The gross forex reserve came down to US$ 21.45 billion on September 21 in line with the International Monetary Fund’s calculation formula, Bangladesh Bank data showed.

Sri Lanka has repaid its lender, Bangladesh, the entire $200 million loan taken through a currency-exchange agreement called SWAP more than two years ago.

Amazingly, the island nation, which had been in dire financial and economic straits even months ago, also paid total interest amounting to over $25.537 million.

“Sri Lanka has paid its third and final instalment amounting to $51.044 million (principal plus interest) on Thursday night,” said a central banker of Bangladesh.

However, getting back the loan amount had become uncertain at a time when the island country had declared itself sovereign debt defaulter.

Sri Lanka sought extension several times to repay the amount to Bangladesh Bank.As the Lankan economy has started to turn around this year, it has been quick in its capacity to repay foreign debt.

The completion of this repayment was confirmed by BB spokesperson and executive director Md Mezbaul Haque.

As the currency swap deal was agreed in 2021, Sri Lanka was supposed to repay the amount within three months.

In May 2022, Bangladesh extended the term to repay to September 2023 and the interest rate was revised upward to LIBOR plus 2.5 per cent.The Central Bank of Sri Lanka has paid the interest amount with every instalment. When Bangladesh extended the loan, its forex reserve was in comfort zone, which now stands at $21.45 billion.

Vehicle importers vehemently protest over EV tax relief favouritism

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By: Staff Writer

Colombo (LNW): Sri Lanka’s vehicle importers have strongly protested against the government’s move to permit electric and hybrid electric vehicle imports with zero tariff to one company, under the guise of electric and hybrid vehicle assembling in the country.

This decision could deprive the state coffers billions of rupees while causing a massive foreign exchange outflow during the next two-year period, Secretary to the vehicle importers association Sri Lanka (VIASL) Arosha Rodrigo told media conference in colon this week.

In the wake of tax concessions for electric vehicle imports Sri Lanka Insurance Corporation (SLIC) has entered in to a strategic collaboration with Auto Capital Investment (Pvt) Ltd (ACIPL) to provide comprehensive motor vehicle insurance cover along with a warranty cover for five years for brand new electric vehicles imported by ACIPL.

With the aim of extending tax benefits to a leading motor trading company a cabinet memorandum has been put forward by Ministry of Investment promotion to impose a zero (%) customs tariff on the CIF value to import electric vehicles with power up to 500kwor Plugin Hybrid Electric Vehicles (PEHV) up to 3000CC in semi-knockdown (SKD) form for local assembly.

This is for a minimum investment of US$50 million by companies already agreed with BOI or new companies entering into agreements, VIAL sectratry alleged. .

However, there is no value addition required on these vehicles in the first two years, which is designed to benefit a single company (Senok Automobile Assembly Pvt LTD) which is believed to have fulfilled these requirements in 2021, he added.

If this gets approved by the cabinet, this will have a severe impact on our already deteriorating economy affecting our foreign currency reserve as well as the national income, he claimed.

Western Automobile Assembly (Pvt) Ltd (Initially known as Senok Automobile Assembly (Pvt) Ltd) has signed the agreement with BOI on 13/08/2015 to assemble Diesel vehicles of engine capacity from 1000cc to 2000cc.

It is using imported brand-new Semi Knocked down (SKD) units provided by technical collaborator, Volkswagen AG of Germany with an envisaged investment of US $ 26.5 Mn as a local investment.

An eight (8) year tax holiday was granted and thereafter concessionary tax rate of 15% or any tax rate under the prevailing Inland Revenue Law, whichever is less.

The Company has requested from the BOI to implement an all-inclusive “ZERO” percent (0%) flat tariff on CIF value, instead of the existing 30% tariff, for the importation of brand new SKD kits for the assembly of Electric Vehicles, Electric Two Wheelers and Plug-in-Hybrid Electric Vehicles.

As per the Cabinet Decision taken No22/1026/504/04 dated 19/07/2022 and the Extra Ordinary Gazette Notification No.2290/19 published by the Ministry of Finance, Economic Stabilization and National Policies on 27/07/2022.

Claim by Senok Automobile on how the project requirement is fulfilled Senok Automobile Assembly Pvt LTD claims to have fulfilled these requirements via investments made back in 2021.

President returns to SL after Cuba, US tour

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Colombo (LNW): Sri Lankan President Ranil Wickremesinghe returned to the island after concluding his official tour in Cuba and the United States.

The Sri Lankan delegation led by Wickremesinghe landed on the Bandaranaike International Airport (BIA) in Katunayake today (24) at about 8.30 am.

SL settles $200mn loan from Bangladesh with $4.5mn interest

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Colombo (LNW): Sri Lanka has settled the entirety of US $200 million loan from Bangladesh, taken through a currency swap two years ago to address the economic crisis, Dhaka-based Dhaka Tribune reported.

In its report, the news agency claimed that Sri Lanka in the last intalment paid about US $50 million and US $4.5 million in interest on the loan on Thursday night, citing a senior official of Bangladesh Bank.

Sri Lanka took this loan for a period of one year in May 2021. However, the country failed to repay the loan due to a worsening domestic economic crisis and the Sri Lankan government declared itself bankrupt, hence the country taking an extension to repay the debt several times.

This year, Sri Lanka’s economy started to turn around and the country was able to repay the debt.

According to Bangladesh Bank, Sri Lanka initially repaid US $50 million on August 20. Then on August 31, it returned US $100 million. Finally, they returned the remaining US $50 million on Thursday night.

Sri Lanka has paid off the loan taken from Bangladesh in three instalments.

Businessman killed in shooting incident in Galle

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Colombo (LNW): A businessman was killed in a shooting incident in Galle last night (23), Police said.

The victim was the proprietor of a retail textile shop in Galle and was shot and killed while inside his car on Dickson Road in Galle approximately at 7.30 pm last night, according to Police.

The perpetrators are two assailants who came in by a motorcycle.

The Police are conducting further investigations into the incident.

Lanka Sama Samaja Party endorses “JanaSabha” system

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The Leader of the Lanka Sama Samaja Party and Parliamentarian Dr. Tissa Vitharana has expressed his full support for the JanaSabha Bill and the JanaSabha system prepared by the Jathika JanaSabha Secretariat.

He expressed this view during a meeting with the Director General of the Jathika JanaSabha Secretariat and others.

The both parties also discussed the importance of the JanaSabha system, which was prepared by the Jathika JanaSabha Secretariat as a civil society proposal and based on a Cabinet decision, as a timely, democratic way of carrying out rural development activities and as a participatory model of government.

Dr. Tissa Vitharana also stressed that the government should take steps to present the JanaSabha Bill to Parliament without delay. The meeting was attended by the Director General of the Jathika JanaSabha Secretariat Palitha Lihiniyakumara, the Director (Operations, Research and Development) of the Jathika JanaSabha Secretariat Attorney-at-Law Akalanka Hettiarachchi, and others.

BASL demands withdrawal of controversial ATA and Online Safety Bills

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Colombo (LNW): The Bar Association of Sri Lanka (BASL) urged the government to immediately withdraw the controversial Anti-Terrorism Bill and very recently introduced Online Safety Bill, in an unanimous understanding that both Bills ‘seriously impinge on the liberty and freedom of the people and will have a serious impact on democracy and the rule of law in the country.’

In a statement, the BASL pointed out that the government must hold a meaningful consultation with the relevant stakeholders including the BASL and to take into consideration their concerns prior to proceeding the Bill via gazette.

Full Statement:

The Bar Council of the Bar Association of Sri Lanka (BASL) calls upon the Government to immediately withdraw the Anti-Terrorism Bill and the Online Safety Bill which were published in the Gazettes issued on 15th and 18th September respectively, and not to proceed with the said Bills.

At a meeting of the Bar Council held today, it was unanimously resolved that both Bills seriously impinge on the liberty and freedom of the people and will have a serious impact on democracy and the rule of law in the country.

It is observed that both Bills have been introduced without due consultation with the stakeholders including the BASL. Further, the BASL’s observations on the previous version of the Anti-Terrorism Bill have also not been considered.

The BASL calls upon the government to have a meaningful consultation with the relevant stakeholders including the BASL and to take into consideration their concerns prior to proceeding to Gazette such Bills, which have a serious impact on the community at large.

03 Sri Lankans found dead with hands and feet tied, heads covered in plastic in Malaysia

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Colombo (LNW): Three Sri Lankan men were found dead with their hands and feet tied and their heads covered in plastic in a house on Jalan Perhentian Kampung Kovil Hilir, Sentul, Malaysia two days ago (22), Kuala Lumpur based New Straits Times reported.

Screams believed to be from a fight led to the discovery of the bodies that were found stacked in the house’s store, with one of them naked.

Kuala Lumpur police chief Datuk Allaudeen Abdul Majid said the police received a call from the public informing that there had been a fight at a residence on a four-storey shophouse lot at around 11pm last night.

“Following that, the police mobile patrol vehicle (MPV) team arrived at the house which is located on the second floor and carried out an inspection before finding the bodies of the three men.

“Inspection at the house found a Sri Lankan couple in their 40s who were renting the house and they were detained to assist with the investigation.

“One of the three victims involved is the son of a married couple in their 20s,” he said at a press conference at the Sentul Police Headquarters.

Allaudeen said initial investigation found that during the fight, two foreign men were also in the house but managed to escape from the location.

“It is understood that the house has five rooms that housed the couple involved, their children and two tenants who were also killed in the incident.

“Investigations found that two Sri Lankan suspects who live in Klang, Selangor, came to the house to visit the couple they had known for the past six months.

“They are said to have been living in the house for the past two days. Based on this information, we believe this was a planned crime,” he said.

He said examination of the three bodies found that there were marks on one of the victims’ bodies.

“There were no visible signs of injury on the other two bodies involved and we have seized a knife believed to be a murder weapon.

“The bodies of the three victims were sent to Hospital Kuala Lumpur National Institute of Forensic Medicine for post-mortem today (23).

“The married couple, who are unemployed were remanded for seven days from today until Sept 29 for further investigation according to Section 302 of the Penal Code,” he said.

Allaudeen added that the police were still in the early stages of unravelling the motive behind the incident.

“Further investigation is underway and we are tracking the two men involved who are also the main suspects.

“People who have information about the whereabouts of the two suspects can contact the Kuala Lumpur Police Operations Room at 03-21460584/0585 or any nearby police station to assist with the investigation,” he said.

Source: New Straits Times

Today’s (Sep 24) weather: Several provinces to meet showers, thundershowers

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By: Isuru Parakrama

Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Galle and Matara districts, and showers or thundershowers will occur at several places in Central, Uva, Eastern and North-Central provinces during the evening or night, the Department of Meteorology said in its daily weather forecast today (24).

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo, Galle and Matara.
Winds:
Winds will be south-westerly and speed will be (30-40) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Puttalam to Kankasanthurai via Mannar and from Hambantota to Pottuvil.
State of Sea:
The sea areas off the coast extending from Puttalam to Kankasanthurai via Mannar and from Hambantota to Pottuvil will be rough at times. The sea areas off the coast extending from Puttalam to Hambantota via Colombo, Galle and Matara will be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.