President, Ranil Wickremesinghe, embarked on an official visit to Cuba ahead of his participation in the G77 plus China Summit in Havana on September 15-16, hosted by Cuba as the current Chair of the G77 plus China. During his visit, President Wickremesinghe engaged in bilateral discussions with Cuban President Miguel Díaz-Canel Bermudez, reinforcing the bonds of friendship and dialogue between the two nations.

President Wickremesinghe’s arrival in Cuba was marked by a warm welcome, as he received a Guard of Honour at the Palace of Revolution. President Díaz-Canel Bermudez expressed Cuba’s appreciation for the visit, emphasizing its significance during these challenging times globally. He praised Sri Lanka’s commitment to friendship with Cuba and to the vital role played by the G77 and China in representing the global South.

In their discussions, President Wickremesinghe recalled the history of bilateral cooperation between Sri Lanka and Cuba, particularly in multilateral forums. Both nations have supported each other on issues like lifting sanctions against Cuba and human rights matters. They identified areas of future cooperation, including public health, agriculture and sports.

President Díaz-Canel accepted President Wickremesinghe’s invitation to visit Sri Lanka in 2024, underscoring Cuba’s continued support for Sri Lanka. He also highlighted Cuba’s role in addressing North-South gaps in Science, Technology and Innovation, expressing willingness to share expertise, particularly in vaccine development.

The two leaders emphasized the importance of bolstering the relationship between their countries, focusing on collaboration in medicine, healthcare, sports training and coconut cultivation. President Wickremesinghe expressed Sri Lanka’s commitment to supporting Cuba in international forums, while President Díaz-Canel assured support for Sri Lanka regarding human rights resolutions.

This meeting represents a significant step forward in strengthening diplomatic ties between Sri Lanka and Cuba, with far-reaching implications for both nations and the broader global community. President Wickremesinghe was accompanied by key officials, including Secretary Foreign Affairs Ms. Aruni Wijewardane, the Ambassador of Sri Lanka to Cuba Mr. Lakshitha Ratnayake, the Director General of the United Nations and Multilateral Affairs Division of the Ministry of Foreign Affairs, Ms. Rekha Gunasekera and Private Secretary to the President Ms. Sandra Perera.

Manusha Nanayakkara, the Minister of Labour and Foreign Employment, confirmed that the existing 9% employee benefit related to the Employee Provident Fund will remain unchanged.

The Minister also emphasized that taxation is not levied on the funds held by members of the Employees’ Provident Fund. Instead, it is imposed as a percentage of 14 percent on the profits generated from the fund’s investments.

Minister Manusha Nanayakkara made these remarks during his participation in a press conference held today (15) at the Presidential Media Centre, on the theme of ‘Collective Path to a Stable Country.’

Expressing his views further he said;

In line with agreements made with the International Monetary Fund and our creditors, we have successfully completed the optimization of our foreign debt. However, it is crucial that we also direct our attention towards optimizing our domestic debt.

We initially resorted to foreign loans, recognizing that they are funded by the taxpayers of those respective countries. Unfortunately, our challenges in repaying these loans led us to explore options for local debt optimization. Subsequently, after achieving domestic debt optimization, we are prepared to undertake a restructuring of our foreign debt.

It’s worth noting that a significant portion of Sri Lanka’s loans are sourced from EPF-ETF funds, which has sparked some debate. Some have questioned why domestic credit optimization measures were not applied to banks. The rationale behind this decision is that banks will continue to be subject to a 30 percent tax rate, with no changes in taxation for other primary lenders.

As a government, we have secured approval from both Parliament and the Cabinet and we have made the decision to extend the 9 percent return for another four years. This means that individuals will continue to receive an annual benefit of 9 percent on their savings, without any additional 14 percent or 30 percent taxes. It’s important to clarify some misconceptions on this matter.

The 14 percent tax is exclusively applied to profits earned after investing money in the Employee Provident Fund (EPF), ensuring that individuals with substantial savings in the bank today, such as our 2.4 million workers, will not face any adverse impact. When they are ready to withdraw their savings, they will also receive the annual 9 percent return.

Statements like “EPF/ETF Fund will be in danger unless we restructure domestic debt” are largely rhetorical and lack a substantive plan. We trust that the Central Bank, as the custodian of the Employee Provident Fund, is an independent institution and will not be negatively affected. It’s important to emphasize that decisions regarding the fund will not be made through the Ministry of Labour.

Furthermore, we are planning to implement a digital data system at the beginning of the next year, which will strengthen our migrant labour policy. Additionally, we have completed the groundwork for digitalizing all data systems in the Labour Department and are actively working towards introducing an E-salary system.

The Select Committee of Parliament tasked with urgently addressing and eradicating the escalating drug issue in the country has invited public proposals and opinions.

The establishment of this committee, formed to identify effective strategies for immediate control and elimination of the spreading drug problem, was initiated through a parliamentary motion passed on June 8, 2023, as disclosed by the Parliamentary Communications Department.

The committee, chaired by Minister of Public Security Tiran Allas and comprising 11 other Members of Parliament, was appointed by Speaker Mahinda Yapa Abeywardena. Hansa Abeyratne, the Assistant Secretary General of Parliament, serves as the committee’s secretary.

Interested organizations wishing to submit their recommendations and perspectives on the methods required to promptly address and eliminate the growing drug issue in the country may do so by sending their proposals and views to the following address: “The Secretary, The Select Committee of Parliament, Parliament of Sri Lanka, Sri Jayawardenepura Kotte,” or via email at [email protected].

The statement further outlined that all relevant views and proposals must be submitted on or before October 12, 2023.

Additionally, the committee expressed its intention to potentially hear oral testimonies from those submitting representations, where relevant parties and supporting documents would be summoned in due course for further examination.

In a compelling address delivered at the Summit of the Heads of State and Government of the G77 & China in Havana, Cuba, President Ranil Wickremesinghe emphasized the pivotal role of science, technology, and innovation in addressing the pressing development challenges faced by developing nations across the globe. The President’s Media Division reported on this remarkable speech.

Commencing his address, President Wickremesinghe commended Cuban President Miguel Diaz-Canel Bermudez for hosting the Group of 77 plus China (G77+China) Summit in Havana, acknowledging Cuba’s historical role as a champion for the concerns and aspirations of developing nations in various multilateral forums.

President Wickremesinghe shed light on the unprecedented challenges confronting the global South, including the ongoing pandemic, climate change, and crises related to food, fertilizer, and energy. These challenges not only threaten the achievement of Sustainable Development Goals (SDGs) but also exacerbate the global debt crisis.

Delving into the historical context of technological development, President Wickremesinghe highlighted how Europe’s advancements in the 15th century, such as gunpowder, cannons, and ocean-going ships, facilitated its conquest of other regions, ultimately leading to the technological disparities we observe today.

He emphasized that a new technological divide is emerging in the 21st century, necessitating the adoption of digitalization and cutting-edge technologies such as Big Data, IoT, AI, Blockchain, Biotechnology, and Genome Sequencing to bridge this gap.

President Wickremesinghe stressed the significance of an educated workforce equipped with knowledge and technological expertise to facilitate the much-needed transformations crucial for the development and progress of developing nations.

The President also outlined his government’s initiatives, including the evaluation of underperforming Science and Technology Research Institutes, the establishment of a Technology and Innovation Council, and a Digital Transformation Agency. Additionally, Sri Lanka plans to establish four new universities specializing in new technologies, with one resulting from technological collaboration between India and Sri Lanka—the International Climate University being the fifth.

Addressing the digital divide, President Wickremesinghe cited challenges such as limited access to expensive technology, inadequate digital skills and infrastructure, cultural and institutional barriers, and financial constraints. He called for effective cooperation mechanisms within the G77 and China, including the revitalization of the Consortium of Science & Technology & Innovation for the South (COSTIS) and member countries committing 1% of their GDP for R&D over a decade.

President Wickremesinghe underscored the importance of collaboration between governments and the private sector and proposed the creation of technological platforms in fields like digitalization, health, medication, AI, and renewable energy, taking inspiration from the European Union’s Technology & Innovation Platforms.

Highlighting the brain drain from the South to the North and the loss of educated manpower as a threat to the development of Science, Technology, and Innovation in the South, President Wickremesinghe called for compensation from the North for this loss. He also urged increased South-South cooperation and proposed a scheme akin to the Colombo Plan to enhance collaboration, exchange best practices, and develop policies harnessing the transformational potential of science, technology, and innovation.

In conclusion, President Wickremesinghe reaffirmed Sri Lanka’s commitment to supporting the new Havana Declaration and called for the collective voice of G77 and China to be heard in international forums. His address underscored the paramount importance of science, technology, and innovation in shaping the future of developing nations, marking a pivotal moment at the G77 and China Summit.

1. Fitch Ratings downgrades SL’s Long-Term Local-Currency Rating to ‘RD’ (Restricted Default) from ‘C’: analysts say SL’s Local Currency ratings is now the same as that for the Foreign Currency, as a result: analysts also say it would now be highly challenging for SL to retain the Forex investment in the local T-Bills & Bonds, as well as attract local investment into the “default status” T-Bills & Bonds.
2. UNP Chairman MP Wajira Abeywardene says the officials of the Ministry of Finance and the Central Bank had no authority to declare bankruptcy on 12th April’22: says a probe by the Intelligence Service must be carried out to find out as to who was behind this conspiracy.
3. Former CB Governor Ajith Nivard Cabraal says the declaration of bankruptcy was not a sudden event, but the outcome of a highly organised campaign to push the country to an admission of bankruptcy, although it was not warranted: queries as to how such a crtitical decision as announcing bankruptcy could have been made by the CB Governor and Treasury Secretary in just the second day of their office, unless it was pre-planned.
4. The Monetary Board, as the “custodian” of the workers’ EPF decides to opt for the Govt’s Debt Exchange offer, which would have been approved by the Monetary Board as the “Economic Advisor to the Govt” : claims it was done in the “best interests” of the members of the Fund: many trade unions and workers’ groups have already expressed acute opposition to the move to cut the EPF balances by about 20%: notwithstanding opposition, the EPF tenders Rs.2,668bn face value of T-Bonds for Debt Exchange on the MB’s instructions.
5. SL economy contracts by a massive 3.1% YOY in the 2nd Qtr of 2023 on the back of the huge contraction of 8.4% in the 2nd Qtr of 2022: follows the contraction of 11.5% shrinkage in the 1st Qtr of 2023 which was on the back of a lower shrinkage of 1.6% in the 1st Qtr of 2022: in the 2nd Qtr of 2023, Agriculture sector grew 3.6%, Industries contracted 11.5% & Services dropped 0.8%.
6. Govt Midwifery Service Assn President Devika Kodithuwakku expresses concern about shortages of maternity staff with 3,000 vacancies, islandwide: says the shortage has badly affected maternal care and is taking a heavy toll on the families they cared for.
7. People in the Kuchchaveli area, along the Trincomalee coast, are deeply concerned about sand exploration activities conducted by the Geological Survey & Mines Bureau, as the sand exploration is ultimately geared towards selling highly valuable heavy mineral sands to foreign entities.
8. Appeal Court orders the CID & other respondents not to remove Nadun Chinthaka alias ‘Harak Kata’ from the place of his present detention, without informing the Judiciary & the Attorney General, until his petition is heard.
9. British Foreign Office says the SL High Commission owes £652,120 as “congestion charges”: historians say the British Govt owes billions of Pounds as “the value of plundered & stolen assets and reparations”, to Sri Lanka.
10. President Ranil Wickremesinghe appoints a 3-member Committee to investigate the allegations in the documentary aired by UK’s Channel 4 on the 2019 Easter Sunday terror attack: Committee to be chaired by retired SC Justice S I Imam, and to consist of retired Air Force Commander Jayalath Weerakkody & Harsha Soza, PC.

In a recent turn of events on September 14, 2023, Fitch Ratings took a significant step by downgrading Sri Lanka’s Long-Term Local-Currency Issuer Default Rating from ‘C’ to ‘RD’. This move came in response to the completion of a complex treasury bond exchange program, part of a broader domestic debt optimization effort. It’s worth noting that the exchange of treasury bills held by the Central Bank of Sri Lanka (CBSL) is still a work in progress.

In a reassuring statement, Fitch expressed its confidence, stating, “We do not believe the completion of the first phase of the restructuring of the sovereign’s local-currency obligations is likely to trigger a loss of depositor confidence in the banking system, leading to a widespread default within the financial system, including for non-bank financial institutions (NBFIs). As such, we expect the banks to continue to service their local-currency obligations, given their better funding and liquidity profiles relative to that of the sovereign.”

However, Fitch has kept the Rating Watch Negative (RWN) status for Sri Lanka’s banks and NBFIs. This move reflects an acknowledgment of the potential risks that may impact their creditworthiness in comparison to other entities on the Sri Lankan national ratings scale. These near-term risks are primarily associated with the aftermath of the sovereign’s debt restructuring and the ongoing constraints in accessing wholesale foreign-currency funding.

Fitch also highlights the need for further clarity in the sovereign debt restructuring process, especially regarding foreign-currency debt. Such clarity could signal a reduction in the challenges that have been affecting the banking sector over the past few quarters, potentially leading to the resolution of the RWN status with an affirmation of the bank ratings.

While local banks have been spared from the rupee debt restructuring, it’s important to recognize the persisting challenges in the broader economic landscape. The anticipated economic contraction and volatile economic variables continue to pose challenges. These factors may exert downward pressure on individual credit profiles, especially for NBFIs, which are often more exposed to cyclically sensitive segments of the economy.

Fitch concludes by underlining the significance of reassessing the sovereign credit profile after the completion of the debt exchange with CBSL, as it will inevitably influence the ratings of banks and NBFIs. The interconnectivity between these institutions and the sovereign’s financial health remains a critical factor.

As the domestic debt optimization program nears its conclusion, there is still a cloud of uncertainty looming over the completion of the foreign-currency sovereign debt restructuring. Any uncertainties in this domain could impact the banking sector, with potential ripple effects on NBFIs, given the banks’ exposure to defaulted foreign-currency sovereign bonds, despite their relatively small share of sector assets (3.6% of assets at the end of the first half of 2023).

Several spells of showers will occur in Western, Sabaragamuwa and Southern provinces and in Puttalam, Kandy and Nuwara-Eliya districts.

Showers or thundershowers may occur at a few places in Eastern and Uva provinces, and in Mullaitivu district during the evening or night.

Fairly strong winds about (40-45) kmph can be expected at times in western slopes of the central hills, Northern, North-central, and North-western provinces and in Trincomalee and Hambantota districts.

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

A letter has been sent to the President informing about the employee rights of Litro Gas Lanka and Litro Gas Terminal Lanka companies.

Litro Gas Lanka and Litro Gas Terminal, which claims a continuous successful business history of 150 years, have decided to be privatized due to the current state economic policies, and Litro Gas Lanka companies, which provide high income to the local economy and a huge contribution to the state’s tax capacity, are very important in the economy of Sri Lanka. The letter informed that efficient companies.

With a minimum number of 200 employees, these companies meet the gas needs of the Sri Lankan consumers and the industrial sector. It has been informed that its employees directly contribute to high productivity and success, and trained professionals for the industry provide their services and they are a strong human resource of this company.

Therefore, it has been stated in the letter that if the Sri Lankan government privatizes this business, it should be made mandatory to provide the employee rights mentioned in the letter, and The National United Litro Guardianship Organization, which represents the entire number of employees, will be strongly declared.

The letter is below.

By: Staff Writer

Colombo (LNW): Despite challenges posed by the economic crisis, Sri Lanka continues to draw tourists in considerable numbers.

Priyantha Fernando, the Chairman of the Sri Lanka Tourism Development Authority SLTDA, released these figures, noting a marked increase in the overall number of visitors this year.

He stressed the need of introducing an aviation policy for the robust tourism development policy to attract 5 million tourists by 2029

Fernando noted a historic lack of synergy between tourism and aviation policies, highlighting the urgent need for a marketing-oriented approach to entice airlines and bolster inbound tourist traffic. “

He claimed that the decades-old aviation policy has shielded the national carrier, restricting Sri Lanka from fully capitalizing on potential tourist markets.

The cumulative count of foreign tourists stands at an impressive46, 308 up to September 12 this year 2023.

This substantial number of arrivals signifies a steady recovery and growth in the tourism sector of the nation, showing the resilience and attractiveness of Sri Lanka as a top travel destination

Tourism industry’s resurgence continues with the country welcoming over 950,000 visitors’ year-to-date (YTD), marking a significant milestone after a three-year hiatus.

During the first 12 days of September, Sri Lanka received 46,308 tourists, propelling the cumulative figure to an impressive 950,626.

For 2023, Sri Lanka Tourism has set an ambitious goal of over 1.55 million visitors. The authorities anticipate 73,893 more arrivals during the following two weeks to meet the monthly target of 120,201 tourists.

India continues to be the strongest source market for Sri Lanka, both for the YTD figures and September arrivals. In the first 12 days of September, a total of 12,252 tourists arrived from India, while visitors were also recorded from the UK, Germany, Russia, and Australia.

This resurgence is a testament to Sri Lanka’s enduring appeal as a tourist destination and its successful efforts in revitalizing the tourism sector after multiple setbacks experienced since 2019 for three consecutive years.

Sri Lanka Tourism Development Authority Chairman, Priyantha Fernando, said that a well-crafted aviation policy has to be formulated to archive the country’s ambitious target of attracting 5 million tourists by 2029.

In June, the International Air Transport Association (IATA) has called on Sri Lanka to take steps towards creating an aviation blueprint for greater economic growth and prosperity through the development of a robust aviation industry.

Over the past 15 months, eight airlines have recommenced their operations in Colombo, driven solely by commercial considerations due to high demand.

However, Fernando stressed that this alone is insufficient, emphasizing the pressing need for enhanced synergy and a comprehensive policy framework to revolutionize and sustain both industries.