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IMF MD Kristalina Georgieva Commends Sri Lanka’s Economic Progress in Meeting with President Wickremesinghe at UNGA

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In a crucial meeting held during the United Nations General Assembly (UNGA) in New York, Managing Director of the International Monetary Fund (IMF), Ms. Kristalina Georgieva, met with President, Ranil Wickremesinghe, to discuss vital economic matters.

During the meeting, Ms. Georgieva and President Wickremesinghe delved into the ongoing financial sector reforms and the substantial progress made in debt restructuring initiatives. The IMF Managing Director commended the Sri Lankan government for its effective measures in curbing inflation and nurturing a conducive environment for business growth, as well as the flourishing tourism industry. She expressed her satisfaction with the government’s commitment to enhancing the overall economic landscape.

Notable figures attending this significant meeting included Sri Lanka’s Foreign Minister, Mr. Ali Sabry, President’s Secretary Mr. Saman Ekanayake, Ambassodor Mr. Mahinda Samarasinghe, UN Permanent Representative Mr. Mohan Peiris and President’s Advisor Mr. Dinesh Weerakkody alongside senior officials representing both Sri Lanka and the International Monetary Fund.

The government’s robust economic development program leads to a substantial 62.1% drop in inflation

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Acting Finance Minister Ranjith Siyambalapitiya announced that over the past year, inflation in Sri Lanka has significantly decreased to 62.1%, thanks to President Ranil Wickremesinghe’s robust economic reform agenda.

Mr. Siyambalapitiya also highlighted that inflation, which stood by 66.7% during the first and second quarters of 2022, has now plummeted to just 4.6% for the same period in 2023.

He made this announcement during a press conference held yesterday  (21) at the Presidential Media Center, focusing on the theme of ‘Collective Path to a Stable Country.’

Acting Finance Minister Siyambalapitiya further said;

Over the past year, the government successfully increased the country’s foreign reserves from 1.8 billion dollars to 3.8 billion dollars. In August 2022, the exchange rate stood at Rs. 361 per dollar, but by August 2023, one dollar could be acquired for Rs. 321. This shift is not the result of artificial control but rather a reflection of the rupee’s value adjusting in response to supply and demand for the dollar, which holds significant economic importance.

The interest rate for deposits, previously at 14% in 2022, has been lowered to 11%, while the loan interest rate, previously at 15.5%, has been reduced to 12% this year. Notably, last year, the primary account deficit was Rs. -247 billion, but this year it has turned into a surplus of Rs. 27 billion. This marks the first surplus in the primary account balance in over 40 years.

Tourist arrivals, which numbered 496,430 in 2022, have surged to 904,318 during the first two quarters of this year. Equally impressive is the growth in tourism earnings, which rose from 832.6 million US dollars in 2022 to 1,304.5 million US dollars in the first two quarters of this year, reflecting a remarkable 56.7% increase compared to the previous year.

In the past year, the amount of money remitted by Sri Lankans living abroad to Sri Lanka has surged from 2,214.8 million US dollars to 3,862.7 million US dollars this year, marking a remarkable 74.4% increase according to data from the Ministry of Finance.

On August 1, 2022, the QR code system was introduced as a measure to manage petroleum demand due to foreign exchange shortages. This led to a significant disparity between normal demand and supply, resulting in a notable increase in diesel consumption by 28% and petrol consumption by 83% in June 2023, when the QR system was partially relaxed. However, as of September 1, the QR code system, which directly impacts economic growth, has been completely lifted.

Upon assuming office, President Ranil Wickremesinghe faced a daunting challenge of addressing a 14-hour power outage, which had a direct impact on the economy. Presently, the government ensures a continuous and stable electricity supply to the population.

As of August 23, 2023, there were 1467 imported goods banned due to foreign exchange shortages. Currently, the ban applies to only 279 items. Furthermore, the import of vehicles, which had been halted in 2020, now includes buses and trucks for public transport.

In April 2022, the country faced difficulties in meeting its debt obligations. However, the government has since secured the first installment under the International Monetary Fund’s Extended Credit Scheme, contributing to stabilizing the country’s economy compared to the previous year.

Health Sector Protests Emerge Over Disparities and Medicine Shortages

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On September 22, a consortium of trade unions representing the healthcare sector, in collaboration with civil service organizations, is set to stage demonstrations in front of hospitals, highlighting persistent disparities within the healthcare system and the ongoing medicine shortages.

The decision to protest during their lunch break, ensuring minimal disruption to patient care, was a carefully considered move by these health unions.

Dr. Madura Seneviratne, the District Secretary of the Nuwara Eliya District for the All Ceylon Health Trade Union Federation (ACHTUF), shed light on the motives behind the protests. He emphasized that these demonstrations materialized in response to the government’s perceived failure to take requisite measures to address the critical issues plaguing the healthcare sector.

The protests underscore the pressing need for attention and action regarding disparities in healthcare and the vital issue of medicine shortages, which impact the quality of care and services delivered to the public. As the demonstrations unfold, stakeholders will be closely watching for potential developments in the ongoing dialogue between healthcare unions and the government.

US supports the govt in providing ‘Thriposha’ to mothers and children.

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By: Staff Writer

Colombo (LNW): The United States Agency for International Development (USAID) handed over a substantial consignment of 4,700 Metric Tonnes of soya beans and maize to Sri Lanka Thriposha Limited, to support the continuation of the Thriposha fortified food programme.

The United Nations World Food Programme (WFP) facilitated the handover at a special event held at the Thriposha factory.

This consignment forms part of a wider contribution of USD20 million from the United States towards WFP’s emergency operation to support Sri Lankan communities impacted by the country’s economic crisis.

As a significant contributor locally and globally, the US has enabled WFP to provide cash, food assistance and value vouchers to food-insecure Sri Lankan families, while supporting national food and nutrition programmes, including school meals and Thriposha- a fortified blended food product, the WFP said in a statement.

“The U.S. Agency for International Development is pleased to deepen our long partnership with Sri Lanka through our recent emergency funding to provide essential ingredients for the Thriposha blended food supplement to prevent malnutrition of Sri Lankan children,” states Asta Zinbo, Director of the Office of Governance and Vulnerable Populations, USAID.

“The country’s economic crisis, with lost jobs, reduced incomes, and soaring costs of living, has affected people’s ability to access healthy meals. Vulnerable groups, including pregnant and breastfeeding women and young children, are at elevated risk of malnutrition, the statement added.

“Of all of the groups affected by the country’s economic crisis, it is the children and women we are worried about the most,” says Gerard Rebello, Deputy Country Director of WFP, Sri Lanka.

“We are grateful for the generosity and support from the United States in assisting these vulnerable groups, so they receive critical nutrition at a time when they need it the most.

WFP’s support to the Thriposha programme is an integral part of our emergency operation to safeguard development progress and mitigate the long-term effects of the economic crisis.”

Thriposha is used to supplement a regular diet with essential nutrition and is provided free of charge through the national nutritional programme.

The US-funded raw materials will be used to provide four rounds of Thriposha for over half a million pregnant and breastfeeding women, and undernourished children under five, it added.

WFP, with funding from donors like the US, has reached over 3.8 million people with food and nutrition assistance since June 2022 through its emergency operation, including those who received support through multiple activities, according to the WFP.

India’s IRCON to install Sri Lanka’s new railway signaling system.

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By: Staff Writer

Colombo (LNW): In the wake of an ambitious plan of Sri Lanka Railways restructure for better service, Transport and Highways Ministry has signed a contract with India’s IRCON International Limited for the design, installation, testing, and commissioning of a Signaling system along the Maho to Anuradhapura route, spanning 66 kilometers.

The contract, valued at US$14.90 million, was inked in the presence of Sri Lanka’s Minister of Transport and Highways, Bandula Gunawardane, and India’s High Commissioner in Sri Lanka, Gopal Baglay.

The project, which will be executed under an Indian Line of Credit of USD 318 million, is set to bolster transportation links and foster economic growth.

High Commissioner Mr. Baglay emphasized the significance of this initiative for Sri Lanka, reflecting India’s commitment to supporting its neighbour.

He highlighted that the credit line for this project in the current situation, symbolizes the continued desire of the Government and the people of India to stand with the people of Sri Lanka.

Sri Lanka’s Transport and Mass Media Minister Gunawardane expressed gratitude to Prime Minister Narendra Modi and the Indian government for their support, particularly during Sri Lanka’s recent economic challenges.

It was also pointed out that Sri Lankan railway projects have received support in the form of LOCs in recent times only from India.

Projects of over US$ 1 billion in the Railway sector have been completed under 5 Indian LOCs to date. .

IRCON is currently involved in a $ 91.27 million project to upgrade and rehabilitate the railway line from Maho to Omanthai, covering a distance of 128 kilometers.

The track rehabilitation from Anuradhapura to Omanthai is already finished, while work on the Anuradhapura to Maho section is scheduled to begin in January 2024.

India continues to finance and provide expertise to upgrade and modernize Sri Lanka’s railway system.

Indian public sector unit IRCON is upgrading the railway line, which includes ancillary work, from Maho to Omanthai, at a cost of USD 91.27 million under an existing Indian Line of Credit (LOC) of USD 318 million, the Indian High Commission said

IRCON International, an Indian Railways subsidiary that began operating in Sri Lanka in March 2009, has improved the 115-km-long Southern line and rebuilt the whole 253-km-long network of rail lines in the Northern Province to help modernize Sri Lanka’s rail network.

Through the installation of a cutting-edge signaling and communications system on a 330-km section of the Sri Lankan railway line, IRCON has also helped to ensure safety and dependability.


Sri Lankan Rupee Shows Modest Gain Against US Dollar

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The Sri Lankan Rupee exhibited a slight appreciation against the US Dollar today, September 22, compared to the rates recorded on Thursday.

Peoples Bank reported that the buying rate for the US Dollar dipped from Rs. 317.15 to Rs. 316.91, while the selling rate decreased from Rs. 330.39 to Rs. 330.13.

Similarly, the Commercial Bank noted a decline in both the buying and selling rates of the US Dollar, with rates moving from Rs. 318.67 to Rs. 317.20 for buying and from Rs. 329 to Rs. 328.50 for selling, respectively.

Sampath Bank also registered a reduction in the exchange rates for the US Dollar, with the buying rate sliding from Rs. 319 to Rs. 318 and the selling rate dropping from Rs. 329 to Rs. 328.

This slight appreciation of the Sri Lankan Rupee against the US Dollar may reflect various factors influencing the foreign exchange market and economic dynamics in the region. Traders and economists will be closely monitoring these fluctuations for potential implications on the country’s financial landscape.

Sri Lanka Original Narrative Summary: 22/09

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  1. President Ranil Wickremesinghe meets UN Secretary-General António Guterres at the United Nations Headquarters & the duo engage in “cordial discussions”.
  2. President Ranil Wickremesinghe tells the UN that adverse climate impacts affect clean energy, food security, water, and farmers’ livelihoods in SL, straining the recovery from last year’s economic crisis: also says, as a climate-vulnerable, debt-ridden nation, the need for climate finance is urgent, but wealthy countries are falling short on their commitments.
  3. Agriculture Minister Mahinda Amaraweera says the Govt has earmarked Rs. 12 bn to facilitate farmers in procuring fertiliser for the upcoming cultivation season: also says farmers will receive Rs.15,000 per hectare, allowing them the flexibility to choose between organic or chemical fertilisers based on their specific agricultural needs.
  4. Police say the measures taken to suppress crimes such as murders and drug trafficking are being implemented continuously, but that certain crimes being led by individuals residing in foreign countries raises practical problems in terms of the implementation of the law.
  5. Japanese Ambassador Mizukoshi Hideaki confers “The Order of the Rising Sun, Gold and Silver Rays” on Sunil Wijesinha, former President of Japan-SL Technical & Cultural Association, JASTECA, in recognition of his distinguished contribution to strengthening economic relations and promoting mutual understanding between Japan and SL.
  6. Former Chairman of the Public Utilities Commission Janaka Ratnayake submits an audit report on the fuel price data which shows significant discrepancies in the pricing calculations presented to the COPE Committee on 7 July 2022: indicates that the overall loss is estimated at over Rs. 40 billion in 2022.
  7. President Ranil Wickremesinghe to reconstitute the Monetary Board of the Central Bank: the new Central Bank Act, which was drafted with the support of the IMF, is expected to ensure “more independence to the country’s monetary authority”.
  8. India’s IndiGo airline announces the introduction of new direct flights between Hyderabad and Colombo from 2 November.
  9. SJB MP S M Marikkar says that a Govt led by SJB Leader Sajith Premadasa would initiate an investigation and apprehend the individuals responsible for orchestrating the 2019 Easter Sunday attack.
  10. Women’s Cricket Consultant & Olympic silver medalist Susanthika Jayasinghe says the Asian Games is the biggest sporting event in the Asian region: also says the SL women’s cricket team led by Chamari Athapaththu is strong and their performance has been very good recently.

Gun Violence Claims 44 Lives in 2023

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olice Spokesperson SSP Nihal Thalduwa revealed that a total of 44 lives have been tragically claimed by gun violence incidents in the year 2023 thus far. Speaking at a media conference in Colombo, SSP Thalduwa shed light on the disturbing trend, identifying the majority of these incidents as revenge attacks orchestrated by members of organized criminal gangs.

DIG Deshabandu Tennakoon, who oversees the Western Province, emphasized the crucial role of law-abiding citizens in curbing the escalating crime rate within the country. Addressing an event at a school in Panadura, DIG Tennakoon stressed that it falls upon the police to eradicate the prevailing fear of crime, with drug abuse emerging as a central factor driving criminal activities.

He elaborated on the psychological distortion induced by drug addiction, which often leads individuals to commit thefts, robberies, and even murders. These insightful comments come in the wake of a harrowing incident in Thalduwa, Avissawella, where four individuals traveling in a three-wheeler fell victim to a ruthless drive-by shooting on the night of September 20. Tragically, two of them lost their lives, while the remaining two sustained critical injuries.

Reports indicate that the assailants, arriving on a motorcycle, unleashed a barrage of approximately 25 shots upon the unsuspecting victims, employing a T-56 firearm. Law enforcement authorities suspect the involvement of the notorious criminal figure “Manna Ramesh,” who is believed to be evading capture in Dubai, UAE.

President Ranil Wickremesinghe Holds Diplomatic Meeting with President Joe Biden at UN General Assembly Gala

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President Ranil Wickremesinghe of Sri Lanka engaged in a warm and meaningful conversation with President Joe Biden of the United States during a prestigious gathering held in New York on Thursday, September 20.

The occasion was nothing short of grandeur, as President Biden hosted a lavish dinner, bringing together an assembly of world leaders who had actively participated in the 78th session of the United Nations General Assembly, as reported by the President’s Media Division (PMD).

President Joe Biden kicked off the encounter with a heartfelt welcome, extending his warm hospitality to President Ranil Wickremesinghe. Their camaraderie was evident as they embarked on a friendly and insightful conversation, delving into various topics of global significance.

Following their discussions, the two leaders joined their fellow heads of state for a group photograph, symbolizing the unwavering spirit of international cooperation that is so essential in today’s complex world.

President Wickremesinghe, accompanied by Professor Maithree Wickremesinghe, and the gracious Mr. and Mrs. Biden, posed for a photograph that will surely resonate as a symbol of unity and diplomacy on the world stage.

WEATHER FORECAST FOR 22 SEPTEMBER 2023

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Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Galle and Matara districts.

Showers or thundershowers will occur at several places in Uva, Central, North-central and Eastern provinces and in Vavuniya and Mullaitivu districts during the evening or night. Fairly heavy showers above 50mm can be expected at some places.

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