Home Blog Page 1309

Investor-centric new investment policies and laws on the cards for BOI

0

By: Staff Writer

Colombo (LNW):A stable investment policy and a unified investment law is set to be introduced, making Sri Lanka the easiest and most attractive country in the Asian region for investment.

Investment Promotion State Minister Dilum Amunugama said that a committee of experts has been appointed to introduce the new investment policy.

All services of the Sri Lanka Board of Investment (BOI) have been made more flexible. A fully-established Investor Facilitation Centre (IFC) at the World Trade Centre, west tower, 27th floor, has been established.

Further, a new marketing communication programme is soon to be launched to attract 100 IT service companies and encourage 50 existing BOI companies to reinvest.

Amunugama also said that many facilities such as the establishment of advisory councils for identified sectors, digitization of key investor services, and modernization of existing zones will be introduced to meet international green standards.

The other measure proposed were the introduction of a partnership finder database, five-year resident visa programme, etc. have already been implemented

High regulatory powered investment promotion agency (authority) will take up the task of expediting the attraction of foreign direct investment (FDI) in to the country efficiently and expeditiously, State Minister of Finance Shehan Semasinghe disclosed

Special committee appointed by President Ranil Wickremasinghe has already made a recommendation to set up this new agency by bringing the Board of Investment (BOI), the Export Development Board (EDB) and the Sri Lanka Export Credit Insurance Corporation (SLECIC) together onto one platform, he said.

National Enterprise Development Authority (NEDA) and other entities that support exports and investments will also come under the purview of the new agency.

The budget 2023 has allocated Rs 100 million to implement the investment and export sector reforms expeditiously.

These institutions connected to investment and exports will function under the proposed new agency following the re-enacting of 1978 Greater Colombo Economic Commission (GCEC) laws making it compatible with modern day needs.

The Board of Investment (BOI) is now completely out of target in attracting Foreign Direct Investment confining its operations to encourage BOI enterprises to carry out their businesses, economic experts warned.

BOI should be in the forefront of business attraction and supply chain management and need to be ready to react quickly to these challenges, they pointed out.

The government has taken this decision of merging BOI with other export related state institutions after evaluating the performance of the these institutions during the recent past.

On average, it takes around 170 days to approve an investment project in Sri Lanka as these processes involve over 40 line agencies, it has been observed.

At present there are over 73 project proposals are still to get approval at around 10 different agencies. The delay in approving the projects is not auger well for investors.

The aim is to expedite and stream line the investment approval process to cater to the needs of investors within four or five days under one roof on the directions of the President.

IMF induces a strategy for SLs financial sector stability in DDR scenario

0

By: Staff Writer

Colombo (LNW): The Fund’s Asia and Pacific Department Director says IMF with the govt. will “flesh out a strategy” soon to safeguard financial sector in Domestic Debt Restructure scenario.

Hints that DDR was included in SL’ debt restructuring plan before the approval of IMF programme IMF has insitsed the government to heed the demand of other creditors although it is difficult task with banks , other stake holders and opposition politicians pressure.

The International Monetary Fund (IMF) plans to support the government to come up with a strategy to safeguard financial sector stability in a potential domestic debt restructuring (DDR) scenario, a top official of the Fund said.

“When you restructure domestic debt, you have to make sure that you also safeguard financial stability. So, these are issues on which the government is currently working and we’ll flesh out a strategy on that, hopefully very soon he pointed out.

He hinted that domestic debt restructuring was included in Sri Lanka’s debt restructuring plan before the approval of the IMF programme given the significant challenges on the path to debt sustainability.

“In terms of restructuring, the debt in Sri Lanka was assessed to be unsustainable. And that’s why, before the programme could be approved, there had to be a path towards restoring sustainability.

And that includes restructuring debt to all creditors – private creditors, official creditors, and to some extent, domestic debt, for the simple reason that debt sustainability is quite a big challenge in Sri Lanka,” he added.

The government is expected to come up with a comprehensive debt restructuring framework this month. The Central Bank recently revealed that Domestic Debt Optimization (DDO) on a voluntary basis would be included in the country’s debt restructuring strategy.

Commenting on economic recovery, senior finance ministry official highlighted that unlike previous IMF programmes, the current IMF programme put Sri Lanka on the path to prosperity as the successful implementation of it is directly linked to debt sustainability following the country’s default on external debt.

“The next step for them is to embark, to make good faith efforts to reach a debt agreement with their creditors – private creditors, official creditors and so on. In terms of growth outlook itself, we had a contraction of 8.7 percent 2022. We have growth contracting at 3 percent in 2023 and then making a mild recovery.

But, the issue will be for Sri Lanka to implement the programme well so that debt can be made sustainable, which is a big difference from previous programmes, and the country can be put on the path to prosperity,” he elaborated.

The IMF expects the current programme, which is lying on revenue-based consolidation, to bring in macro-economic stability while curtailing inflation.

Although, inflation has slowed down from record high levels last year, the IMF officials noted that inflation has to come down durably.

Australia’s Defence Force is set to forge closer military ties with Sri Lanka

0

By: Staff Writer

Colombo (LNW):Australia’s Defence Force is set to forge closer military ties with Sri Lanka and other countries in the north-east Indian Ocean, as the federal government weighs human rights concerns against urgent regional security fears.

Following the new Defence Strategic Review, published in abridged declassified form last week, the government is preparing to expand the longstanding Defence Cooperation Program beyond the Pacific, South-East Asia and south Asia, into countries on the Bay of Bengal and the Andaman Sea.

This expanded program is expected to include Sri Lanka, the Maldives and Bangladesh – all of which have previously expressed a desire for more engagement.

It is also likely to entail a further broadening of ties with India, which is a member of the Quadrilateral Security Dialogue, or Quad, alongside Australia, Japan and the United States.

But the expansion will not include Myanmar, whose military overthrew the democratically elected government in 2021 and jailed its leader, Aung San Suu Kyi.

The Defence Cooperation Program involves conducting joint military exercises, training partner countries’ personnel, participating in exchanges and secondments, hosting visits, holding strategic dialogues and contributing infrastructure support. It can also involve engaging in military operations together.

Last year’s October budget showed the long-running program involved 13 countries in the Pacific, most substantially Papua New Guinea, and another eight in South-East Asia. It is understood to already also include Pakistan, though the country was not listed by name.

The Saturday Paper asked the Defence Department this week for a list of other countries in which the program operates, and the current expenditure in each. It declined to provide this information.

“Details of the Defence Cooperation Program will be published as part of the Defence Portfolio Budget Statement on Budget night next Tuesday,” the department said in a statement.

The October budget allocated the program just under $400 million, including $34.4 million across South-East Asia, $50 million for PNG and $126 million across the wider Pacific.

Another $670,000 was allocated to the Defence International Training Centre, at which some partner countries’ forces receive training in Australia.

Defence Minister Richard Marles would not say which countries will now be added, but confirmed the north-east Indian Ocean is an additional focus. Marles insisted human rights issues in partner countries had always been factored into the program’s operations.

“He emphasized that this was “within the context and the parameters” of those human rights considerations. “But clearly we need to be … deeply engaged in our region, and the north-eastern Indian Ocean is part of our region.”

The Defence Strategic Review does not specify which countries the program expansion should include. One of those who helped write the review document, Professor Peter Dean, of Sydney University’s United States Studies Centre, says those decisions are a matter for government.

Sri Lanka Original Narrative Summary: 08/05

0

01. Chairman of the National Delimitation Committee Mahinda Deshapriya says the final Committee report will be submitted in around the third week of May; reveals about 400 proposals received on the Committee’s interim report; asserts these proposals will be analysed and reviewed and the observations will be shared with the relevant stakeholders.

02. Sri Lanka’s Chief Free Trade Agreement Negotiator at the International Trade Office established at the Presidential Secretariat K.J. Weerasinghe says SL and Bangladesh plan to hold an introductory meeting virtually on May 29 to commence negotiations for the proposed Preferential Trade Agreement (PTA), which is expected to eventually lead to a Free Trade Agreement (FTA).

03. CBSL data show Sri Lanka’s external reserves amount to US$ 2,755 million ending April, up from US$ 2,694 million in March: The reserves continue to carry the US$ 1.4 billion equivalence of Chinese Yuan denominated swap facility from China’s People’s Bank obtained two years ago.

04. Disaster Management Centre report says more than 6,000 families have been affected by adverse weather conditions: a total of 6,345 people from 1,634 families in 10 districts including Kalutara, Gampaha, Badulla, Trincomalee, Ratnapura, Kegalle, Jaffna, Mullaitivu, Puttalam and Kurunegala; adds 87 houses have been partially damaged due to strong winds and flooding.

05. Finance State Minister Ranjith Siyambalapitiya says the customs duty concession of Rs. 3 provided for a kilo of wheat flour will be removed; asserts the reimposition of the duty will aim the management of wheat flour prices to protect the 90 per cent of subsistence level paddy farmers; stresses this will not affect in wheat flour price.

06. Power and Energy Minister Kanchana Wijesekara says 211MW of renewable energy has been added in to the Energy Mix in 2022, of which 146MW as RoofTop Solar; adds capacity addition of 3075MW of renewable energy and 1525MW of storage are expected between 2027 – 2030.

07. Sri Lanka’s monthly tourism earnings consistently stay above US$ 160 million a month in 2023: The April inflows brought the cumulative tourism income to US$ 696.3 million the first four months of 2023, up 17.8% from the same period in 2022: In March 125,495 tourists arrived in SL and in April, 105,498, bringing the cumulative arrivals to 441,177.

08. Bodies of two schoolboys washed ashore to Kokkuwil beach: The deceased identified as 16-year old students: Preliminary investigations reveal these two boys might have drowned after going to sea bathe: Investigations ongoing.

09. JVP/NPP Leader MP Anura Kumara Dissanayake says 88% of the country’s total population is borrowing, defaulting on loans or mortgaging items; laments 68% of the population has reduced the amount of food they eat or the number of meals they consume, and the people have been coerced into eating food that they don’t like; adds 40% of the population has slashed access to education and healthcare for children.

10. Amritha Incense Sticks, a leader and pioneer in the locally produced incense stick market, achieves a historic milestone by acquiring Sri Lanka Standards (SLS) certification: Amritha Incense Sticks are manufactured and distributed by Darley Butler & Company Ltd.

Over 6,000 people affected by adverse weather conditions: DMC

0

By: Isuru Parakrama

Colombo (LNW): More than 6,000 people have been affected by the existing adverse weather conditions, announced the Disaster Management Centre (DMC).

According to a report by the Centre, a total of 6,345 people from 1,634 families in 10 districts have been affected by the adverse weather conditions, and these groups are from districts such as Kalutara, Gampaha, Badulla, Trincomalee, Ratnapura, Kegalle, Jaffna, Mullaitivu, Puttalam and Kurunegala.

In addition, 87 houses have been partially damaged due to strong winds and flooding.

The maximum rainfall of 117.4mm was reported from Jaffna, according to the Department of Meteorology.

Customs duty concession on wheat flour removed

0

By: Isuru Parakrama

Colombo (LNW): The government will be removing the customs duty concession of Rs. 3 per kilo provided for wheat flour, revealed Finance State Minister Ranjith Siyambalapitiya.

Accordingly, the customs duty of Rs. 3 per kilo on wheat flour will be re-imposed and wheat flour prices will be managed to protect the 90 per cent of subsistence level paddy farmers, he added.

The removal, however, will not affect the price of wheat flour, the Minister pointed out addressing the media after attending an event held in Awissawella yesterday (07).

Delimitation Committee to submit final report in May

0

By: Isuru Parakrama

Colombo (LNW): The National Delimitation Committee chaired by former Election Commission Chairman Mahinda Deshapriya is set to submit its final report in around the third week of May.

The Committee has reportedly received almost 400 proposals from various parties regarding its interim report submitted to the Prime Minister in April, 2023, and these proposals are currently being analysed and reviewed, Committee Chief Deshapriya noted.

Accordingly, the Committee’s observations will be shared with the relevant stakeholders, including political parties, civil society activists and other concerned groups, he added.

The National Delimitation Committee was formed in 2020 aiming the slashing of the number of local government members to around 4,000, in the objective of streamlining the administration and ensuring more efficient governance at the local governance bodies.

Met dept issues advisory for strong winds and rough seas

0

By: Isuru Parakrama

Colombo (LNW): A low level atmospheric disturbance has developed over the south east Bay of Bengal area and this system will gradually develop into a low-pressure area and then into a cyclonic storm within the next few days, the Natural Hazards Early Warning Centre of the Department of Meteorology said in an advisory statement.

Meanwhile, showery condition is expected to continue further over most parts of the island due to an atmospheric disturbance in the vicinity of the island, the Centre warned, urging the public to take adequate measures to prevent any damages.

Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central, North-Western, Southern and Northern provinces and in Trincomalee district, and at several places elsewhere over the island, particularly during the afternoon or night.

Strong winds about (40-45) kmph can be expected at times over western and southern coastal areas and in the western slopes of the central hills.

10-hour water outage in several areas of Colombo tomorrow

0

By: Isuru Parakrama

Colombo (LNW): Water supply will be suspended for ten hours in several areas in the Colombo District tomorrow (08), the National Water Supply and Drainage Board (NWSDB) announced.

Accordingly, water supply will be suspended from 10 am to 8 pm tomorrow in the following areas;

  • Kolonnawa Urban Council
  • Moragasmulla
  • Rajagiriya
  • Obesekarapura
  • Bandaranayakepura
  • Ethul Kotte
  • Nawala-Koswatte
  • stretch of main road from Rajagiriya to Open University of Colombo (OUSL)
  • Nawala, and all adjoining roads.

SL President Wickremesinghe sets world record during the crowning of King Charles III

0

Colombo (LNW): On June 02, 1953, Mr. Esmond Wickremesimghe and Mrs. Nalini Wickremesinghe, parents of Sri Lanka’s current President Ranil Wickremesinghe, had attended the crowning of Queen Elizabeth the II, as escorted guests alongside then Sri Lankan Prime Minister Dudley Senanayake.

70 years passed since Queen Elizabeth’s crowning, Mr. Wickremesinghe as Sri Lanka’s Head of State attended the crowning of her successor, King Charles the III yesterday (06), notably setting a world record.

nalini wickremesinghe and esmond wickremesinghe

MIAP