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Island Nations of the Indian Ocean and South Pacific Urge Non-Interference in Great Power Rivalry

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President Ranil Wickremesinghe participated in the ‘Ocean Nations: The 3rd Annual Indo-Pacific Islands Dialogue,’ moderated by Dan Baer, Senior Vice President for Policy Research at the Carnegie Endowment for International Peace and hosted by the Carnegie Endowment and Sasakawa Foundation.

During this event, he highlighted the reluctance of island nations in the Indian Ocean and South Pacific to become embroiled in the rivalry between major world powers. The President emphasized that these nations are focused on their own priorities, including social, economic, and ecological development and seek to maintain their sovereignty and independence.

President Wickremesinghe asserted that Sri Lanka’s government does not align itself with either India or China and firmly stands for Sri Lanka’s interests above all else. This commitment to sovereignty extends to other island nations in the region.

Island nations in the Indian Ocean and South Pacific have distinct priorities, unrelated to the Quad (comprising the US, India, Japan, and Australia) or China’s objectives, he said, adding that Sri Lanka is open to collaboration with any partners willing to respect its autonomy.

In terms of regional frameworks President Wickremesinghe noted that China’s rise occurred within existing regional frameworks such as APEC and ASEAN, which many nations prefer to maintain. The recent expansion of great power rivalry beyond these frameworks has raised concerns among member nations.

He noted that the South Pacific and the Indian Ocean hold immense strategic value. The South Pacific is a vital hub for the US Navy and the Indian Ocean played a crucial role in World War II. President Wickremesinghe noted, “The South Pacific which includes Hawaii – it is here that the US dominance of the Pacific established in WW2 and Battle of the Coral Sea and Midway as well as the shooting down of Admiral Yamamoto’s plane took place.

The importance of the Indian Ocean was best described by Winston Churchill who said the most dangerous moment of war was the capture of Ceylon and consequently the loss of Indian Ocean.”

The Indo-Pacific concept has gained recognition, primarily due to mounting challenges from China, the President said, adding that it has prompted a re-evaluation of regional dynamics and cooperation, such as the Jakarta Concord within the Indian Ocean Rim Association (IORA).

The G7’s attempt to involve European powers and NATO in the Indo-Pacific was met with opposition, with only France expressing interest. This move was seen as violating IORA’s rules-based order, the President pointed out.

The President also noted that the Quad has shifted from a focus on security and dialogue to applying coordinated pressure in the region. While surface warfare threats are minimal in the Indian Ocean, the issue of submarine warfare needs to be addressed within IORA.

In terms of Security Dialogues, the President pointed out that the island nations find security dialogues acceptable but emphasize non-interference in their internal affairs. Many island nations, including Sri Lanka, have not engaged in high-level discussions regarding the Indo-Pacific. Recent developments such as the US opening an embassy in the Maldives were also noted.

The power balance in the Indian Ocean is evolving, influenced by ASEAN, the Russian-Ukraine war, and the emergence of BRICS+. This changing landscape favours the independence of island nations and calls for strengthened cooperation between IORA, ASEAN, and BRICS+.

In response to a question posed on the Hambantota port, President Wickremesinghe said Sri Lanka expressed concerns over the labelling of the Hambantota commercial port as a Chinese military base. The country is developing the Trincomalee harbour in cooperation with India and intends to raise the matter at international forums.

He also emphasized the need for IORA to accommodate the Indo-Pacific concept, recognizing the interconnectedness of the Indian and Pacific Oceans and enabling cooperation among small island states in both regions.

The island nations of the Indian Ocean and South Pacific are resolute in their pursuit of independence, non-interference and the protection of their unique priorities amidst the evolving dynamics of great power rivalry in the Indo-Pacific region.

ITC invests close to ₹3,000 crore in Welcomhotels Sri Lanka

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By: Staff Writer

Colombo (LNW): Official data from the Reserve Bank of India shows that in July, ITC invested $20 million in Welcomhotels Lanka Pvt Ltd equity

ITC Ltd, which recently announced the demerger of its hotels business, has made an equity investment of about ₹3,000 crore in Welcomhotels Lanka Pvt Ltd with the latest investment of $20 million.

Official data from the Reserve Bank of India shows that in July, ITC invested $20 million in Welcomhotels Lanka Pvt Ltd equity. According to Welcomhotels’ annual report, in FY23, the parent company (ITC Ltd) has ₹2,775-crore equity and preference capital.

The Sri Lankan property is spread across 5.86 acres of prime sea-facing land in Colombo, including a luxury hotel and a super-premium residential apartment complex – ‘Sapphire Residences’.

The property includes 352 rooms, suites and serviced apartments, and 12 restaurants. According to ITC Hotels’ web site, the hotel is slated to be completed in 2023.

According to the annual report, “The project construction activities, which had ramped up post the pandemic, were also impacted during the year on account of the challenging operating conditions prevalent in the country.

Despite these challenges, the company took all steps to expedite project work; significant progress was made during the year in the façade, finishes, mechanical, electrical, and plumbing works.”

However, it also mentioned that the muted business environment and macro-economic challenges faced by the country have impacted sales of ‘The Sapphire Residences’ luxury apartments.

“Given its unique positioning in the market and superior value proposition, it is anticipated that apartment sales would gain traction as the project nears completion and the situation in the country normalizes,” the company added.

“Project construction activity was running on schedule till Q3 of FY2018-19,” it said, adding that conditions were adversely impacted due to disruptions in the aftermath of the terror incidents in 2019, recurrent waves of Covid and the challenging socio-economic and operating conditions prevailing in the country over the last 18 months.

The government of Sri Lanka has undertaken several steps to stabilize the economy; these include securing financial assistance from multi-lateral agencies and other countries, increasing interest rates to curb inflation, restricting non-essential imports to conserve foreign exchange, introduction of taxes to boost government revenues, etc.

  President joins the Conference on Sustainable Development Goals

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In conjunction with the 78th session of the United Nations General Assembly, President Ranil Wickremesinghe actively participated in two significant events in New York. The first event was the “Conference on Sustainable Development Goals – 2023,” which commenced Sep-(18) at the United Nations Headquarters. This conference focused on exploring new strategies to advance progress toward achieving sustainable development goals by 2030.

Mr. Ruwan Wijewardena, President’s Senior Adviser on Climate Change, Mr. Saman Ekanayake, Secretary to the President and Ms. Aruni Wijewardena, Secretary of the Ministry of Foreign Affairs, were also present on this occasion.

Additionally, President Ranil Wickremesinghe took part in a high-profile business roundtable discussion titled “Economic Opportunities in Sri Lanka.” This event, jointly organized by the Business Council for International Understanding and the Embassy of Sri Lanka in the United States of America, also took place.

The business roundtable saw participation from more than 40 U.S. businesses keen on exploring investment and trade prospects in Sri Lanka. Alongside them were prominent representatives from Sri Lanka’s private sector and a delegation of senior officials from the United States government. This discussion aimed to foster economic opportunities and strengthen bilateral relations between the two nations.

Sri Lanka and World Bank Discuss Economic Reforms and Collaborations

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The Sri Lanka Delegation, led by President Ranil Wickremesinghe, engaged in high-level discussions with World Bank President Mr. Ajay Banga and other World Bank officials at the World Bank Headquarters (UNHQ) Sep’ (18). The meeting cantered on a range of critical topics, including economic reforms, agriculture, tourism, and digitization.

President Wickremesinghe expressed gratitude for the vital financial support provided by the World Bank during challenging times, stating, “The money was available at least for the basics and that helped us tide through the most difficult months. Now it’s a matter of finalizing the debt restructuring and moving on from there.” He emphasized the need for fast and sustained economic growth.

Regarding economic sectors, President Wickremesinghe highlighted the immediate focus on tourism, food security and agricultural modernization.
“So now we are planning it and the first the total package of economic reforms that have to be done. We will not have this window of opportunity. Crisis gives you a window of opportunity and we will not have that again. So we will drive that as far as possible. And then focus immediately on the different sectors. We are starting with tourism, which is the lowest hanging fruit. Then, food security and agricultural modernization. Those two would be the ones that we start with. Thereafter, we will be going into the other areas, the traditional exports. Agriculture would mean modernization and the whole gamut of things.”

In the realm of education and technology, President Wickremesinghe expressed his desire for additional technological universities and renewable energy development, which would significantly impact the northern region of Sri Lanka. He also mentioned plans for a climate change university.

World Bank President Ajay Banga commended Sri Lanka’s commitment to reforms, emphasizing the importance of credibility in the country’s approach. He noted that the World Bank is actively involved in advisory work and encouraged Sri Lanka to rely on their support.

Mr. Ajay Banga also praised Sri Lanka’s focus on tourism, highlighting its job creation potential. He mentioned discussions about ports and trade and offered assistance in digitization, renewable energy and education. Mr. Banga also mentioned potential collaboration on power grid connectivity with India, Sri Lanka, Bangladesh, and Nepal.

“These re topics we understand well. When I was in India we discussed the power interconnection idea and I was told that ADB is already working on this and we have connected up with ADB and if there is any way we could be helpful with India, Sri Lanka, Bangladesh, Nepal, connecting up their power grids, it will be to your benefit in the short term and also once you produce more energy, for your long term as well. I know ADB is there working with you, but you should know we are there if you need us.”

President Wickremesinghe elaborated on the expansion of Colombo’s port and the benefits of transhipment, creating a significant cargo hub.

He discussed the potential for industrialization in South India and Sri Lanka’s plans to phase out certain subsidies while providing grants to universities and students.
The conversation further explored the significance of digitization, with Mr. Banga emphasizing transparency and trust-building through digitization of governance. He also suggested the adoption of a school system digitization model he witnessed in India.

Meanwhile, Foreign Minister Ali Sabri highlighted the importance of agriculture in Sri Lanka’s workforce and the need for increased productivity. “Agriculture is high on the President’s agenda because 27% of the workforce is in agriculture but they only contribute 8.7% to the GDP. So we need to uplift that standard in terms of yield and productivity and value added manufacturing.”

President Wickremesinghe mentioned upcoming bills focused on women’s rights, gender equality and violence against women.

World Bank President Ajay Banga commended President Wickremesinghe’s vision, particularly his focus on job creation for the younger generation and improving quality of life. He assured the World Bank’s commitment to supporting these goals in alignment with Sri Lanka’s plans.

President Ranil Wickremesinghe also invited the World Bank President Mr. Ajay Banga to visit Sri Lanka to which he responded positively.

The meeting between President Wickremesinghe and World Bank President Banga underscored the importance of collaboration and reforms for Sri Lanka’s economic growth and development.

Softlogic Holdings PLC acquires renowned International Brand “Bata”

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By: Staff Writer

Colombo (LNW): Softlogic Holdings PLC has bought the Manufacturing License and Distribution Rights & Exclusive Retail Franchise Rights of the Renowned International Brand “Bata” and the Footwear Retailer Ltd.

Softlogic Holdings PLC announced that the Company’s fully owned subsidiary, Softlogic Retail Holdings (Pvt) Ltd has been granted the manufacturing license and distribution rights and the exclusive retail franchise rights for “Bata” and Bata products in Sri Lanka.

Softlogic Retail Holdings (Pvt) Ltd has also acquired 100% stake in Footwear Retailer Ltd, formerly known as Bata Shoe Company of Ceylon Limited on 14th September 2023 for a value of Rs 293 million.

The incorporation of Bata company dates back to 1950 and has over a period of 73 years manufactured and distributed Bata products in Sri Lanka.

Footwear Retailer Ltd (Bata Shoe Company of Ceylon Limited) employs over 150 staff and Is equipped with a manufacturing plant in Ratmalana.

It has a wide network of retail stores and department stores with a product portfolio of more than 20 brands and labels, such as Bata, North Star, Power, Bubblegummers, Weinbrenner, Sandak, Ambassador.

“Bata” is a well-established international brand for high quality, scientifically and uniquely designed footwear and in the Sri Lankan context, a renowned household name since the 1950s.

Softtogic Retail Holdings (Pvt) Ltd wishes to embark on the journey to revive and reposition “Bata” and Bata products by bringing it back as the No.1 brand In the footwear industry in Sri Lanka.

Softlogic Retail aims to tap into Bata’s deep history and evolution of Interweaving technology and unique designs in manufacturing Bata footwear and to open the gateway for new seasonal designs to be launched

In Sri Lanka concurrently with the Bata’s international seasonal launches, giving the customers the experience and opportunity to purchase the season’s newest, best quality and unique footwear in Sri Lanka.

Softlogic is the pioneer in introducing international brands to Sri Lanka and dominates the market with its experience In the distribution and retailing of international brands including footwear brands such as Nike, Puma, Adidas, Skechers, Aldo, Joma, Cantebury, Pegada, Vizzano, Moleca, Language, Converse, Charles Et Keith, Clarks, Birkenstock, Crocs and Havaianas.

State Minister Unveils Ambitious Disability Empowerment Agenda with New Bill and Inclusive Initiatives

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State Minister for Social Empowerment, Mr. Anupa Pasqual, emphasized that empowering the disabled community is pivotal to boosting the country’s productive economy. During a news conference held at the Presidential Media Center, themed Collective Path to a stable country,’ Mr. Anupa Pasqual announced that a new Disability Bill, aimed at safeguarding the rights of the entire disabled community, will be presented to Parliament this year.

Mr. Pasqual noted that approximately 4% of the country’s population comprises individuals with disabilities and the government has taken measures to provide them with financial assistance and essential amenities. Additionally, he stressed the importance of harnessing technology to empower this community, as they have the potential to make meaningful contributions to the country’s economic growth.

The State Minister expressed the government’s commitment to strengthening the disabled community, emphasizing that the forthcoming disability bill aims to reduce their dependence on government support. It is anticipated that the bill will be passed in Parliament by year-end.

The comprehensive legislation seeks to ensure the protection of the rights of disabled individuals and their empowerment within society.

This includes providing access, education and technology to all members of the disabled community. The government plans to integrate disabled students with their peers rather than segregating them, facilitating the implementation of this inclusive program.

The Sign Language Act enjoys international recognition as a legitimate language, allowing it to be understood universally. The revision of the sign language bill, facilitated by the Office of the Secretary General of the Disabled, is slated for completion by year-end, aiming to establish robust communication channels.

Furthermore, a significant international tourism event is scheduled to take place in December this year, bringing together the global disabled community. As part of this program, a dedicated train service will transport participants from Colombo to tourist destinations in Kandy.

Additionally, special cultural events and one-day workshops will be held in the picturesque Aluthgama beach area.

President Ranil Wickremesinghe has placed a strong emphasis on empowering the disabled community, leading to enhancements in various allowances beyond regular social welfare benefits.

The education aid stipend, previously set at Rs. 10,000, has been increased to Rs. 20,000 starting this year. Similarly, employment assistance allowances have risen from Rs. 25,000 to Rs. 45,000. Housing allowances have also seen an increase, rising from Rs. 150,000 to Rs. 250,000.

President Wickremesinghe’s guidance has prompted the ministry to expand its support and benefits for the disabled community. It is essential to ensure that the disabled community is not confined to their homes and that an inclusive environment is created for them in society. Providing job opportunities and integrating their contributions into both public and private sectors is a crucial aspect of this effort.

Recognizing the importance of the disabled community’s contribution to the country’s productive economy, efforts are being made to strengthen the nation’s overall economic landscape. This aligns with the broader goal of bolstering the country’s economy as a whole.

Sri Lanka’s Apparel Industry to step into vertical integration

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By: Staff Writer

Colombo (LNW): Sri Lanka’s Apparel Industry is to step into vertical integration and stronger trade ties with international buyers with the aim of moving into the next modern stage of the garment industry.

Vertical integration is a strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers.

The newly appointed Chairman of the Fabric Apparel Accessory Manufacturers Association (FAAMA), Sahan Rajapakse, highlighted the importance of strengthening vertical integration and import substitution of textiles as the way forward for the industry.

Speaking at the 16th Annual General Meeting of the Association, the Chairman of FAAMA noted that the country currently imports most of its fabric requirements and raw materials, amounting to US$ 2 billion annually.

Most of local fabric requirements are imported, which include 10% synthetic fabrics and approximately 50% cotton.

Only roughly 10% are produced domestically. When we look at it from a numerical perspective, there’s a significant market share we can capture, he said.

But it’s not just about the numbers; it’s about how we redefine the industry, position our country, and introduce innovation.

It’s about creating true vertical integration, encompassing lead times, pricing, and industry flexibility. At FAAMA, we can seize this potential, establish true vertical integration, and expand into the global market and supply chain,” Rajapaksa stressed.

FAAMA also highlighted the sector’s risk brought about by the removal of SVAT, citing that it will lead to apparel manufacturers seeking to import more raw materials rather than purchasing them locally from FAAMA membership.

This could result in 15% of their purchase costs becoming entangled in a lengthy refund process.

Meanwhile, the outgoing Chairman of FAAMA, Pubudu De Silva, noted that the country has immense potential to strengthen its ability to source materials closer to home.

Chairman of the Joint Apparel Association Forum, the apex body of the apparel sector, Sharad Amalean, noted that while the industry is facing a drop in orders, the importance of vertical integration cannot be overlooked.

Strengthening Free Trade Agreements (FTAs) with neighbouring countries like India is essential if the sector is to develop and compete with the likes of Bangladesh.

There’s a substantial market right in India, and Sri Lanka needs to strategize on how to become an integral part of it, he pointed out.

Currently, Sri Lanka imports a significant amount of Indian yarn and fabric, yet our access to duty-free trade with India is severely restricted.

This is a challenge that JAAF has taken head-on, engaging directly with the President and the Chief Negotiator to strengthen the Free Trade Agreement (FTA) with India.”

Established in 2003, FAAMA is the governing body of Fabric & Apparel Accessory Manufacturers and a member of the Joint Apparel Association Forum.

Emirates and SriLankan establish a joint interline partnership

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By: Staff Writer

Colombo (LNW): Emirates and SriLankan Airlines have signed a reciprocal interline agreement to boost connectivity for passengers on both airlines.

The partnership will enable access to new points on each other’s networks via Colombo and Dubai, utilizing a single ticket and enjoying the convenience of baggage transfers.

Tickets are now on sale for travel effective immediately as the interline partnership unlocks 15 regional destinations operated by SriLankan Airlines via Colombo, for Emirates’ passengers to choose from, Sri Lankan Airlines spokesman said.

The interline network includes two new Indian destinations, Madurai and Tiruchirapally, in addition to Gan Island in the Maldives, for customers to travel seamlessly on a single ticket, he added.

These passengers will get the facility of enjoying the convenience of a generous baggage policy and hassle-free baggage check-through to the final destination, he claimed.

Far East and South Asian destinations also include Cochin, Chennai, Bangalore, Hyderabad, Male, Bangkok, Kuala Lumpur, Singapore, Jakarta, Guangzhou, Seoul and Tokyo.

SriLankan Airlines’ passengers are also set to benefit from access to Emirates’ global network and connect to 15 cities operated by Emirates beyond Dubai.

The interline network includes points across the Middle East, Africa, Russia and the US. SriLankan’s customers will enjoy a premium travel experience and partnership benefits while flying on Emirates to Bahrain, Amman, Dammam, Medina, Cairo, Muscat, Nairobi, Moscow, Tel Aviv and a host of US cities including New York JFK, Los Angeles, San Franciso, Chicago, Boston and Houston.

Travel itineraries can be booked immediately on emirates.com, srilankan.com and preferred online and offline travel agencies.

Sri Lanka continues to be an important part of the Emirates network spanning almost 140 destinations.

Emirates launched its services to Sri Lanka in 1986 and since then has carried more than 11 million passengers to and from Colombo.

The airline currently provides two direct daily flights to Colombo, utilizing the Boeing 777-300ER, as well as an additional daily service via Male, providing customers flexibility to choose flights and enjoy the convenience of minimal connection times.

It is the only international carrier to serve the country with First Class services – offering passengers world-class products and superior comfort in the air and on-ground.

Sri Lankan Rupee Slides Further Against US Dollar

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The Sri Lankan Rupee witnessed a continued depreciation against the US Dollar today at commercial banks across the country, in comparison to rates recorded on Tuesday.

At Peoples Bank, the buying and selling rates for the US Dollar have risen from Rs. 316.67 to Rs. 317.15 for buying, and from Rs. 330.89 to Rs. 331.40 for selling.

According to the Commercial Bank, the buying rate for the US Dollar has increased from Rs. 317.68 to Rs. 318.18, while the selling rate has edged up from Rs. 328 to Rs. 328.50.

However, at Sampath Bank, the buying and selling rates for the US Dollar have remained unchanged at Rs. 319 and Rs. 329, respectively. The fluctuations in exchange rates reflect the ongoing economic challenges facing the country.

President Wickremesinghe and Meta’s Sir Nick Clegg Discuss AI and Online Regulation

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New York – On the sidelines of the United Nations General Assembly (UNGA), President Ranil Wickremesinghe engaged in a productive meeting with Sir Nick Clegg, President of Global Affairs for Meta.

During their discussions, President Wickremesinghe shed light on the government’s fresh endeavors aimed at countering online hate speech and the proliferation of fake news. He underscored that the proposed bill would offer avenues for concerned parties to challenge specific aspects through the Supreme Court, with a willingness to consider further revisions during the Parliamentary Committee review.

The President received a comprehensive briefing on Meta’s advancements in Artificial Intelligence (AI), with a particular focus on open-source technologies.

In a forward-looking exchange, both parties explored potential collaborations between the Sri Lankan Government and Meta within the domain of Artificial Intelligence. Among the proposals considered was the development of a cooperative program between Meta and Sri Lankan universities, with the goal of advancing AI technology.

President Wickremesinghe outlined his two key focal points: nurturing the growth of the AI sector in the country, particularly within the realm of education, and leveraging AI to bolster data-driven initiatives geared towards combatting climate change.