Colombo (LNW): The Sri Lankan Rupee (LKR) indicates slight depreciation against the US Dollar today (18) in comparison to last week’s Friday, as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US dollar has increased to Rs. 321.94 from Rs. 321.69, and the selling price to Rs. 331.60 from Rs. 331.50.
The Sri Lankan Rupee, meanwhile, has depreciated slightly against several other foreign currencies as well.
By: Staff Writer
Colombo (LNW): A United Nations Development Programme Regional Human Development report has pointed out that the countries exhibiting the highest wealth inequality in South Asia, as measured by the wealth share of the top 10 percent, include Sri Lanka.
The United Nations Development Programme Regional Human Development report, using data tracked by the World Inequality Database showed that Asia and the Pacific have some of the biggest gaps between the rich and the poor in the world.
The UNDP report highlighted that inequality remains deeply entrenched – the richest 10 percent consistently command over half of total income, and in South Asia in particular, income inequality has been worsening.
There are persistent inequalities in the distribution of wealth, especially in South-East Asia and South Asia, with the highest wealth inequality observed in China, India, Myanmar, Sri Lanka and Thailand.
It added, “human development progress overall has been very uneven.”The report highlighted that “inequality is further exacerbated by corruption, and weak tax policy and administration, as well as by the lack of effective social safety nets.”
Crumbly and uneven economic recovery has further exacerbated income and wealth inequalities in the country, placing Sri Lanka among the top five most unequal countries in the Asia Pacific, according to UNDP.
In the context of Sri Lanka’s economic crisis, multiple assessments and simulations speculate that previous poverty reduction gains may now be lost,” said Dr. Vagisha Gunasekara, Country Economist from the UNDP Policy and Engagement Team.
Even before the economic crisis, the country was grappling with prevalent disparities and enduring structural exclusions, including entrenched inequality, gender biases, and a sizable informal sector.
These challenges were further exacerbated by the pandemic and economic crisis, compounded by rising inflation resulting from geopolitical conflicts.
On top of this, the region and Sri Lanka are facing a triple planetary crisis— climate change, pollution, and biodiversity loss, which are hitting the most vulnerable populations the hardest.
Dr.Gunasekara highlighted that high income and wealth inequalities, which remain persistent, specially after the pandemic and economic crisis, are major concerns for the country.
“Sri Lanka is a country with fairly high income inequality; we are in the top one third of the highest unequal countries in the world, and wealth inequality is also very high.
For example, the top one percent of Sri Lankans own 31 percent of the total personal wealth in the country, while the bottom 50 percent only owns less than 4 percent of the overall wealth in the country. This provides us with a snapshot of how unequal our country is,” she noted.
Colombo (LNW): Renuka Perera, who served as the Chairman of MILCO Company, has reportedly submitted his resignation.
In a written communication to the Secretary of the Ministry of Finance, Mr. Perera conveyed his decision to step down from the position of Milko’s Chairman, effective from today (18).
He cited his resignation in light of collaboration between a local and an Indian company for the privatisation of MILCO, even though he had one more month remaining in his tenure.
By: Staff Writer
Colombo (LNW): Sri Lanka’s manufacturing and services have rebounded strongly recording an uptick in in November 2023 as the island nation is vow recovering from an economic crisis with the unlocking of the second tranche of US$ 3 billion IMF bail out loan, a Purchasing Managers Index compiled by the central bank showed.
The manufacturing and services sectors saw an uptick in November as per the Purchasing Managers Index (PMI) compiled by the Central Bank.
The Manufacturing PMI increased to 57 on a month-on-month basis in November 2023, driven by the seasonal factors.
The index exceeded the neutral threshold after March 2023, with a positive contribution from all the sub-indices, CBSL said.
The increases in new orders were largely driven by the manufacture of food & beverages and textiles & apparel sectors.
Moreover, the increase in production was largely due to the manufacture of food & beverages sector, owing to the seasonal demand.
Further, employment and stock of purchases also increased on a month-on-month basis in line with the improvements in new orders and production.
Moreover, Suppliers’ Delivery Time lengthened during November compared to the previous month, indicating the tightened supply conditions.
The overall expectation for the manufacturing activities remained positive for the next three months, mainly attributable to the gradual recovery in economic activities.
However, the firms are concerned about the tax revisions, which will be effective from January 2024.
CBSL said the Services sector PMI recorded an index value of 59.4 in November 2023 indicating an accelerated expansion in the services activities.
This was led by the increases observed in new businesses, business activities, employment and expectations for activity.
New businesses increased in November 2023 compared to October 2023, particularly with the increases observed in financial services, professional services and accommodation, food and beverages sub-sectors.
CBSL said the business activities continued to expand in November 2023 in line with the positive developments observed in most of the sub-sectors.
Accordingly, significant improvements were observed in business activities related to other personal activities and accommodation, food and beverage sub-sectors driven by the sharp increase in tourist arrivals.
Financial services improved further in line with the increase in credit demand following the recent reductions in policy rates.
The wholesale and retail trade sub-sector also continued to grow amid the festive season supported by the seasonal discounts offered.
Employment increased as new recruitments were made to meet the seasonal demand, whereas backlogs of work continued to decline during November.
CBSL said expectations for business activities for the next three months continued to increase in November due to festive and tourist seasons.
However, some respondents expressed their concerns regarding the amendments to Value Added Tax w.e.f. 1 January 2024.
Colombo (LNW): Substandard and cheaply imported school stationery and plastic food carriers, widely used by schoolchildren, pose severe health risks, Dr. Mahinda Wickramarachchi, Head of Quality Control Unit at Lady Ridgeway Children’s Hospital (LRH) warned.
Despite complaints, a recent study revealed that these materials contain heavy metals, endangering children’s lives.
Items such as pencils, coloring pencils, plastic water bottles, food carriers, and lunch boxes violate international standards, exposing children to hazardous chemicals.
Parents are urged to scrutinise products for compliance with safety codes, Dr. Wickramarachchi went on, emphasising the potential dangers of heavy metals and chemicals, including Bisphenol A (BPA).
“There are health standards for all these items especially an international standard called EN71-3 for children’s stationery and toys. These stationery and toys should be painted with colors that should not include any heavy metals,” he noted.
“We know when little children use these pencils they tend to put them in the mouth or bite the end, which inevitably results in hazardous chemicals or heavy metals entering their biological system,” Daily Mirror quoted the specialist.
“There is a safety code for plastic ware especially used to contain food or consumable liquids. The plastic ware is internationally standardised from 01, 02, 03, 04 and 05. The standard 05 is the one for food or water carriers and the parents should be mindful when buying their children’s water bottles to check for this figure under the container,” he added.
“The plastic ware contains a very hazardous chemical called Bisphenol A (BPA), that could even cause cancerous cells in children over time. Therefore, the parents should be concerned about these health facts, when buying stationery items for their children’s next school season,” Dr. Wickramarachchi pointed out.
Colombo (LNW): A total of 2,121 suspects were apprehended in the past 24 hours, in an island-wide operation initiated on the directives of Acting Inspector General of Police (IGP) Deshabandu Thennakoon.
The operation, targeting drug trafficking and organised crime, involved coordinated efforts from the Police, Special Task Force (STF), and armed forces across 45 police divisions.
During this operation, law enforcement recovered significant quantities of illicit substances, including 2 kilograms and 232 grams of heroin, 178 kilograms of cannabis, 769 grams of Ice drugs, 35 kilograms of Ash, 626 grmas of Mawa, 30,550 cannabis plants, and 3,489 narcotic pills.
Among the 2,121 individuals detained, 12 are under investigation under detention orders, and 116 are on the IRC list of the Police Narcotics Bureau.
Furthermore, asset investigations have been initiated for 5 suspects, and 133 individuals have been referred for rehabilitation as part of this comprehensive effort to combat drug-related activities and organised crime.
The operation is being overseen and coordinated by Deputy Inspectors General of Police in charge of all nine provinces.
Colombo (LNW): The Sri Lankan Rupee (LKR) happens to be largely steady against the US Dollar today (18) in comparison to last week’s Friday, as per the exchange rates of leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar remains unchanged at Rs. 321.18, and the selling price has increased to Rs. 332.38 from Rs. 332.12.
At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 319.75 from Rs. 320.37, and the selling price has increased to Rs. 330.75 from Rs. 330.50.
At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 322 and Rs. 331, respectively.
Colombo (LNW): It has been decided that MP Dhammika Perera will be presented as the candidate of the Sri Lanka Podujana Peramuna (SLPP) in the upcoming presidential election.
Perera, a prominent figure in the Sri Lankan business sector, holds significant investments domestically and internationally, showcasing expertise across various economic fields.
Unlike other potential candidates, Perera stands out by presenting a comprehensive action plan with specific and practical measures to boost Sri Lanka’s economy.
Having previously served as the Secretary of the Ministry of Transport and as the Minister of Investment Promotion, Perera brings valuable experience to the table.
Notably, he has actively contributed to education through the ‘DP Education’ initiative, impacting over 1.5 million school children in Sri Lanka. The initiative, launched in 2019, includes the DP Education IT Campus, commenced in 2023, with the ambitious goal of creating one million jobs in the information technology sector.
The campus programme is currently providing job-oriented computer language education to over 200,000 students.
High Commissioner H.E Gopal Baglay relinquished charge as Government of India’s Head of Mission to Sri Lanka on 15 December 2023 and has been named as the next High Commissioner of India to Australia.
2. High Commissioner H.E Gopal Baglay assumed charge in Sri Lanka in May 2020 and his term as India’s top diplomat in the country witnessed several unmatched milestones in the bilateral partnership. He was instrumental in realizing several crowning achievements in India-Sri Lanka ties.
3. Among the key highlights of his term was the multi-pronged assistance worth USD 4 billion, in response to the economic challenges in Sri Lanka in 2022. Signing of Modalities Agreement for the possession, development and use of Trincomalee Tank Farms and Joint Venture between CPC & LIOC in January 2022 also deserve a special mention. Under his watch, India supplied more than 25 tons of medicines, Made in India Covid vaccine, Rapid Antigen Test kits, Liquid Medical Oxygen, to Sri Lanka to tide over COVID-19 pandemic. Further, Indian Naval and Air Force assets were deployed specially for expediting humanitarian supplies to Sri Lanka during this period.
4. The economic and commercial engagement between the two countries got a major boost during his tenure. There have been multiple bilateral MoUs including for cooperation in renewable energy, for intergrid connection, for development of Trincomalee, for UPI-application acceptance & digital payments, utilization of INR- denominated trade settlements. India has also emerged to be the largest trading partner of Sri Lanka. While development partnership featured landmark projects such as the Sri Lanka Unique Digital Identity Project, generational linkages in Buddhism were reinforced through numerous noble initiatives such as the USD 15 million grant assistance for the promotion Buddhist ties, inaugural international flight from Sri Lanka to the sacred city of Kushinagar in October 2021, carrying almost 100 monks. Various dimensions of connectivity also deepened such as the resumption of Chennai-Jaffna flights and recommencement of ferry services.
5. Mr. Santosh Jha shall be assuming charge as the next High Commissioner of India. Mr. Jha is currently serving as India’s Ambassador to Belgium, Luxembourg and the European Union. In a career spanning more than 30 years, Mr. Jha has served in diverse capacities in several countries and New Delhi including as Counsellor in High Commission of India, Colombo during 2007-2010.
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Colombo
16 December 2023