Colombo (LNW): Sri Lanka will be seeking further technical support and financial assistance from the Asian Development Bank (ADB) in the spheres of digitisation, agriculture, renewable energy and financial sector stability, said Foreign Minister Ali Sabry, following a meeting with ADB President Masatsugu Asakawa today (02).
The Foreign Minister added that during the meeting, the ADB President expressed his appreciation for the “encouraging work Sri Lanka has done so far to avert a greater crisis and for laying a strong foundation” for the recovery of Sri Lanka.
The ADB pledged to continue engaging with renewed vigour in diverse and important areas of interest, Sabry added.
.@ADBPresident expressed his appreciation for the encouraging work #SriLanka has done so far to avert a greater crisis & for laying a strong foundation for our recovery. @ADB_HQ pledged to continue engaging with renewed vigor in diverse & important areas of interest. pic.twitter.com/a91jdPkryO
Colombo (LNW): The Sri Lanka Rupee continues to remain steady against the US Dollar as revealed by today’s (02) exchange rates at a number of leading commercial banks in the island.
At Peoples’ Bank, the buying rate of the US Dollar remains at Rs. 311.59 and the selling rate, Rs. 330.29.
At Commercial Bank, the buying rate has increased from Rs. 309.29 to Rs. 310.05 and the selling rate remains unchanged at Rs. 327.50.
At Sampath Bank, the buying rate remains at Rs. 314 and the selling rate, Rs. 328.
Colombo (LNW): The Sri Lanka Banks’ Association (SLBA) is seeking clarity from the government of Sri Lanka on the proposed activity of domestic debt restructuring in the country, in a statement issued yesterday (01).
The full statement:
The Sri Lanka Banks’ Association (SLBA) represents all of the licensed banks in Sri Lanka and underpins all sectors of the economy. The banking sector is the main mechanism through which the Central Bank of Sri Lanka (CBSL) implements monetary policy influencing the financial markets. The stability of the banking system is critical for the national interest.
GoSL Public Debt Restructuring and Concerns of the Banking Sector
“Having run an unsustainable macroeconomic model in tandem with the longstanding deficits in the budget balance and the external current account, the economy had fully exhausted its buffers by early 2022 as it was straddled by a myriad of vulnerabilities that emanated from both global and domestic sources”.
CBSL Annual Report 2022
In this background, the country’s debt repayment burden was declared unsustainable in April 2022 and proceedings were initiated to seek International Monetary Fund (IMF) help via financing the acute balance of payments deficit. In this process, it is necessary to arrive at a consensus with creditors that repayment relief will be afforded to the Government of Sri Lanka (GoSL) by their debt holders to enable repayment to commence within sensible repayment capacity limits that do not result in social strife and political disruption.
The management of this process including priorities of the GoSL through their agents, the IMF expectations and all public debt holders is admittedly difficult given the diversity of interests. However, the lack of transparency in the negotiations with the SLBA member bank consortium is unhelpful.
The banks believe that all stakeholders involved in structuring the restoration of Sri Lanka’s Balance of Payments to a sustainable equilibrium must necessarily take a careful look at the resulting outcomes – impact to the banking sector capital and liquidity in a potential Domestic Debt Restructuring (DDR) and minimise the risk to the sector. A further escalation of the situation we are in must be avoided.
It must be borne in mind always that the banking sector will have to play an active role in Sri Lanka’s economic revival process. The sector Capital Adequacy Ratios (CAR) and Liquidity Coverage Ratios (LCR) are presently within the regulatory requirements. This position must not be depleted through any action including a debt restructuring that threatens the stability of banks and erodes public confidence.
Banks have asked for clarity on what is meant by “voluntary” debt optimization, is there a non-voluntary element and to whom does this apply (limited to the larger Treasury Bills / Treasury -Bond holders such as the superannuation and pension funds and state-owned Banks), more disclosure on proposed Domestic Debt Optimisation (DDO) and International Sovereign Bond (ISB) re-structuring terms, what is the IMF’s view of Sri Lanka’s economic growth prospects over the duration of the IMF Extended Fund Facility (EFF) and whether proposed DDO would resemble the experience of some other countries who have taken this route before us.
Banks have consistently supported the GoSL and CBSL’s efforts over the years through severe economic hardship that led to both public anxiety and political upheaval reflected in crises especially in recent times with debt repayment moratoriums, rescheduling of viable businesses and necessary recovery arrangements on generally disadvantageous terms predicated by the many incidents of inclement weather, post Easter Sunday 2019 attacks, Covid-19 pandemic, political, and social unrest. Credit impairments have hit an all-time high hitherto unseen. Taking further impairment costs on top of these strains on Capital and Liquidity is not sustainable specially with the tax deductibility of these necessary costs of being in business being uncertain.
The banks reiterate that maintaining stability of the banking system is paramount at this time when extremely difficult decisions are being made.
Eight Sri Lankans were among the crew released by the Federal High Court of Nigeria in Port Harcourt on April 28, 2023, along with the vessel M/T Heroic Idun, which was under detention over disputed oil smuggling allegations, since August 2022 in Nigeria and the Equatorial Guinea.
The out-of-court settlement reached between the Nigerian authorities and Idun Maritime Ltd., the vessel owner, enabled the High Court to end the detention of the vessel and dropping of the charges.
The vessel was detained along with 26 crew members, including 8 Sri Lankans. Sri Lanka will coordinate with the vessel owner regarding the repatriation of the Sri Lankan crew at the earliest, once the conditions are fulfilled by the shipping company, which will arrange the safe return of the crew.
As requested by the Ministry of Foreign Affairs of Sri Lanka, the High Commission in Nairobi, which is concurrently accredited to Nigeria, provided assistance and ensured the welfare and safety of the Sri Lankan crew until the legal process was over. Sri Lanka’s High Commissioner to Kenya, Veluppillai Kananathan, met the Sri Lankan crew in Lagos, Nigeria, on November 13, 2022, and took necessary action to ensure their welfare and accommodation on board the vessel, instead of being sent to judicial custody. High Commissioner Kananathan ensured payment of salaries and other entitlements to the Sri Lankans in full. The High Commissioner was able to convince the shipping company to enhance the salaries of the Sri Lankan crew until their release.
The High Commission worked jointly worked with the Indian High Commission in Abuja, as the crew also comprised 16 Indian nationals.
Colombo (LNW): Sri Lanka is expecting to send its first consignment of organic sour (Embul) bananas to Dubai this week, as part of the government’s initiative of establishing banana processing via the Agriculture Sector Modernisation Project, the Agriculture Ministry announced.
In a statement, the Ministry said 12,500 kg of sour bananas will be exported to the Dubai market every Saturday from the Rajanganaya Sour Banana Project, adding that simultaneously, arrangements have been made to export 25,000 kg of organic sour bananas from Jaffna each week.
Harvesting and processing activities will commence tomorrow (03) morning, the Ministry said.
“The Ministry has decided to establish two banana processing zones aimed at export as there is extensive banana cultivation in the Embilipitiya and Sevanagala areas.
Currently, two banana export model villages, Rajangana and Jaffna, have been established by the Agriculture Sector Modernisation Project under the Ministry. In addition, the ministry has instructed the establishment of these two banana export model village projects at the request of banana farmers in Sevanagala and Embilipitiya.
“Accordingly, plans have been made to cultivate the Cavendish banana species in the Sevanagala area and the sour banana species in the Embilipitiya and Hambantota areas. Both of these plantations will be planted on 400 acres of 200 acres initially, and then the Agriculture Sector Modernisation Project plans to expand them to 800 acres,” the statement said.
The Ministry also announced that arrangements had been made to promote the Jaffna sour banana project as an organic crop.
Currently, two sour banana processing centres for export have been established in Rajangana and Jaffna.
The Agriculture Sector Modernisation Project is planning to establish a banana export processing centre in Barawakumbuka or nearby areas after the Embilipitiya and Sevanagala sour banana and Cavendish Banana Projects have started.
PMD: President Ranil Wickremesinghe, addressing the United National Party May Day celebrations held at the Sugathadasa Indoor Stadium in Colombo yesterday (01) through electronic technology, said that the country should not focus on short-term politics; instead, we should think about the future, specifically 2048, and work towards making Sri Lanka a developed country.
He extended an invitation to all UNP members to transform the party into one that breaks free from traditional politics and charts a new path towards progress for the country.
The President also spoke about the importance of addressing the ethnic problem and reaching an agreement by the end of the year. He emphasized the need for all parties to come together and work towards a resolution that benefits all communities in Sri Lanka.
In his address, President Wickremesinghe also reflected on Sri Lanka’s history as a country with the second strongest economy in Asia. He credited the progress made by leaders such as Mr. D.S. Senanayake and J.R. Jayawardene who took the country forward with the open economy.
Furthermore, the President highlighted his commitment to rebuilding Sri Lanka according to President Jayawardene’s program. With the support of the UNP and its members, he is determined to make Sri Lanka a stronger and more prosperous nation.
He emphasized that the UNP is a party that always prioritizes the country’s interests and engages in policy-based politics. The President also highlighted that the party’s policy is to always be truthful with the people.
President Wickremesinghe recalled that the UNP was the first party to state in its election manifesto the need to seek assistance from the International Monetary Fund and the World Bank to address the economic crisis, while other parties were making promises that they could not keep. The President acknowledged that the UNP had to face criticism for its stance, but stood by its policy.
The President stated that he expects to reach an agreement by the end of the year to solve the ethnic problem that has been a long-standing issue in the country. With the UNP’s commitment to policies that benefit all communities in Sri Lanka, President Wickremesinghe expressed his optimism about achieving a resolution that is beneficial for everyone.
Following is the full speech delivered by President Ranil Wickremesinghe virtually; “After assuming the presidency, I have had the opportunity to address the United National Party and all of you who support the party.
When I took office as president, the country was experiencing its worst economic crisis in 30 years. The economy had completely collapsed, and people were suffering from shortages of food and fuel, leading to protests on the streets. Additionally, some individuals attempted to exploit this crisis to undermine the democratic system and the parliament.
Today, the country’s economy has achieved stability, with no shortage of food, and a functional democratic system where the parliament operates without any threats. Furthermore, everyone has the opportunity to carry out their work without hindrance.
Prior to assuming the presidency, I reflected on one thing: the United National Party prioritizes the welfare of the country. The United National Party is a political party that is close to my heart. In fact, in the United National Party’s 2020 election manifesto, we explicitly stated our intention to seek assistance from the International Monetary Fund and the World Bank, with a goal of securing $7 billion. As a party, we were the only ones who mentioned these critical points. On the other hand, other parties made empty promises they could not fulfil despite knowing the existence of the country’s economic problem.
After honestly sharing our party’s policies, the United National Party ended up in the national list. Our policy is to be transparent with the people, even if it means conveying unpleasant truths. We announced our goals for 2020 and 2021 without hesitation. As the economic crisis deepened in 2022, I met with the former President, Mr. Gotabaya Rajapaksa, and recommended that he seek assistance from the International Monetary Fund.
During the discussions on this matter, the former President summoned a meeting of the party leaders in parliament. While other opposition groups refused to attend, I, along with the Tamil National Alliance, actively participated in the discussions.
My motivation was not rooted in politics, but in properly managing the country’s economy and alleviating the burdens on its citizens. For this reason, I took on the role of the presidency, as I had faith in my ability to revive the economy and work alongside supportive ministers to achieve these outcomes.
My self-assuredness stemmed from my previous experience in successfully rebuilding the country’s economy after the government’s collapse in 2001. During that time, I not only managed to revive the economy but also strengthened it. Similarly, in 2015, when the country’s economy faced a setback, I saw an opportunity to bolster it and achieve a primary budget surplus.
With this confidence in mind, I accepted the responsibility to face the current economic crisis head-on. By now, we have been able to stabilize the country’s economy and establish a sense of political stability. The parliament is functioning smoothly, and many individuals are working within the frameworks of democracy and law. I would like to extend my heartfelt appreciation to the ministers, MPs, political parties, organizations, and, most of all, the United National Party who have supported me throughout this process.
Our progress thus far has been made possible through our agreement with the International Monetary Fund, which was recently approved by a majority vote in parliament last Friday. I would like to express my gratitude to MP Wajira Abeywardena, who represented the United National Party, as well as Ministers Harin Fernando and Manusha Nanayakkara, for their unwavering support in this matter. Without their contributions, we would not have been able to move forward.
Our next step is to execute the IMF agreement and put in place the necessary rules and regulations to restore the country’s economy to a stable state by 2024. However, I am not content with just returning to the status quo.
It is imperative that we move beyond our current economic system and establish an economy that can achieve a rapid GDP growth rate of 6% – 7% annually. To illustrate this point, I have two examples: one is from the time of DS Senanayake, where we had the second strongest economy in Asia and were even able to lend to England. The other is from the tenure of JR Jayawardena, where we advanced with an open economy, and Sri Lanka became the second country in Asia to adopt this system. After our success, China followed suit.
Therefore, I am determined to pursue a new economic model that will elevate Sri Lanka’s economy to new heights and foster continued growth and prosperity for our citizens.
Against this backdrop, Sri Lanka must forge ahead once again. It is futile to compete with Afghanistan to determine who has the weakest economy. Instead, we must focus on building a robust and developed economy. Similar to the approach taken by J.R. Jayawardene, we must pursue numerous new projects and embrace the new economy to achieve our goals. Failure to do so will leave us with no future to look forward to.
We must not only consider our own future but also that of our country’s youth. It is our responsibility to ensure that they inherit a prosperous and thriving Sri Lanka. Therefore, let us work together to implement new strategies and policies that will lay the foundation for a thriving economy and a better future for our citizens.
As we approach the centenary of our independence in 2048, our goal should be to become a country with a developed economy, just like India aims to achieve in 2047 and China in 2049. Let 2048 be the year of development for Sri Lanka. We are not only building this economy for the present generation but also for the youth and children of the future. Our economy should be highly competitive, open, and based on social justice. It should incorporate a green and digital economy, as well as a competitive export market. We are making efforts to reach that stage, and we seek the support of everyone to make it a reality.
Do not focus on short-term politics; instead, let us think about the future, specifically 2048, and work towards making Sri Lanka a developed country. We must not repeat the mistake of making false promises to win support for today and tomorrow. Instead, we must adopt a new path towards a competitive, open, green, and digital economy that is socially just, especially focused on the export market, and built for the benefit of today’s youth and children. To achieve this goal, we must break away from the old political system and embrace change. As members of the United National Party, we must become a party of the future, thinking anew and striving to transform Sri Lanka. This is my appeal to all of you.
My intention is to address the ethnic problem in the country while implementing the agreement with the International Monetary Fund. We are currently in discussions and I hope to reach a mutually agreeable solution by the end of this year. It is important for us to move forward while respecting and protecting the rights of all communities including the majority Sinhalese, Tamil, Muslim, and Burgher minorities without marginalizing anyone. We are all committed to achieving this goal.
Another issue that we need to address is the growing demand for change in our political and economic systems, particularly from the youth. As leaders, it is our responsibility to listen to their voices and take action. To this end, we have decided to appoint five youth representatives to both the Selection Committees and Monitoring Committees of the Parliament, which will be completed by May. Additionally, we plan to submit the Jana Sabha draft to the Parliament, following former Speaker Karu Jayasuriya’s proposal.
Let us work together towards building a new, competitive, and sustainable economy that is inclusive and just for all communities in Sri Lanka. As we strive towards this common goal, we must also move forward with a new constitution that reflects our shared values and aspirations. I call on everyone to join hands and build a better future for our beloved country.
Hence, I urge all members of the United National Party to embark on this new path. During the last election, some MPs from the SJB chose to abstain from voting. We all share the same goal of building an open economy. Therefore, let us unite and work together by forming a parliament and a government.
To the Tamil parties, I say that it is futile to distance oneself from this endeavor. If we are to address the issues faced by the Tamil community in this country, let us collaborate within this system, particularly in the Parliament as part of the government.
After sharing the Cabinet proposals on the new program with the parties and discussing them with the National Councils of the Parliament, we have now achieved a broad consensus on the matter. This twenty-five-year program is an ambitious one, but with the support and cooperation of all, we can move forward without fear. It is our commitment to implement this program and develop our country to its fullest potential. As we embark on this journey, I hope to have the support of all of you.”
Colombo (LNW): Showers or thundershowers will occur at several places over most parts of the island after 2.00 pm, and fairly heavy showers above 75 mm are likely at some places in Western, Sabaragamuwa, Eastern and Uva provinces and in Kandy, Nuwara-Eliya, Galle, Matara, Mannar and Jaffna districts, announced the Department of Meteorology in a statement today (02).
A few showers may occur in coastal areas of Western and Southern provinces in Jaffna and Mannar districts during the morning too, the Dept’s statement added.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas around the island.
Winds:
Winds will be south-westerly over sea area around the island and wind speed will be (25-35) kmph. Wind speed may increase up to (45-50) kmph at times in the sea areas off the coast extending from Colombo to Pottuvil via Galle and Hambanthota.
State of Sea:
The sea areas off the coast extending from Colombo to Pottuvil via Galle and Hambanthota will be fairly rough at times. The other sea areas around the island will be slight to moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Census and Statistics Department data shows the electricity bill of a household in Colombo increased by Rs.10,192 YoY and living expenses rose by Rs.46,169 YOY in April’23: food increased by a further Rs.12,929 YOY, with milk powder increasing by Rs.1,887, fresh fruit by Rs.1,371, sea fish by Rs.1,367, chicken by Rs.1,058, bread by Rs.569, and rice by Rs.552.
President Ranil Wickremesinghe says he would work to create the political and economic changes called for by the youth in the country: also says 5 youth would be appointed to the Parliament Select Committees and the Sectoral Oversight Committees in May: asserts he expects to reach an agreement this year to solve the country’s long-drawn ethnic issue.
Investigators who are probing the claim of Justice Minister Wijeyadasa Rajapakshe that a bribe of USD 250mn had been deposited at a UK bank over the MV X-Press Pearl disaster, directed to the conclusion that the so-called account holder is a fake and the whole drama is a distractor: Investigators also suspect that this was a tactic used by those who allegedly acted to deny the damages for Sri Lanka.
Two of the foreign companies that are planning to enter SL’s retail fuel market, China’s state-owned Sinopec & US-based RM Parks-Shell propose to set up all-purpose fuel stations complete with car wash, service areas, shops and motels: also to be entitled to provide fuel without QR code systems.
Former Consumer Affairs Authority Executive Director Thushan Gunawardena alleges that the Ministry of Trade has informed the Lanka Sathosa to sell canned fish unfit for human consumption through its outlets in 2021.
Chairman of China Merchants Group, China’s largest diversified conglomerate, Miao Jianmin says the Group intends to increase its accumulated investments in Sri Lanka to nearly USD 2 bn: participates at signing ceremony held at the Hambantota International Port for 15 projects, including an investment of USD 400mn to build a modern logistics centre.
SriLankan Airlines says it has recorded a net profit of USD 3 mn for the financial year 2022-23, the first time the airline has made a net profit after Emirates left the management in 2008: admits however that the airline recorded a loss in Rupee terms of Rs.69bn, mainly due to exchange losses.
Police arrest 3 youth between ages 18 & 20, who allegedly released a Tiktok video showing them stealing pigeons kept in a cage as pets at a house in Aluthgama and killing and eating the meat after barbequing them.
President Ranil Wickremesinghe suggests the blocking of share transfers of privatized plantations companies, without the consent of the Govt as they have been given land by the Govt: critics say the move may undermine private property rights and curtail the benefits of private ownership.
Mass Media Ministry and ITN initiate formal inquiries into allegations by a popular woman news caster of ITN Ishara Devendra who claimed via social media that she was subjected to sexual harassment by a senior (journalist) official.
A delegation of Tamil MPs comprising Mr. Selvam Adaikalanathan, MP, President of Tamil Eelam Liberation Organisation (TELO), Mr. G Karunakaran, MP, Member of TELO, Mr. D. Sithardthan, MP, President of People’s Liberation Organisation of Tamil Eelam (PLOTE), Mr. Suresh Premachandran, President of Eelam People’s Revolutionary Liberation Front (EPRLF), Mr. G. Surenthiran, Spokesperson of TELO and Mr. Venthan, President of Democratic Crusader’s Party (DCP) called on the High Commissioner to convey the New Year greetings and held discussions on the current situation in Sri Lanka.
2. The delegation apprised the High Commissioner on the aspirations of Tamil people in Sri Lanka and progress on the related matters.
3. High Commissioner reciprocated the New Year greetings and reiterated India’s commitment towards the full implementation of the 13th Amendment and early conduct of Provincial Council Elections in Sri Lanka.
1. On the milestone occasion of the 100th episode of Mann Ki Baat, High Commission of India, Colombo hosted the live broadcast of the radio programme as it was aired worldwide on 30 April 2023 at the Swami Vivekananda Cultural Center in Colombo.
2. The 100th episode of Mann Ki Baat saw the Prime Minister recollecting the journey of the radio broadcast in its celebration of people’s participation and positivity. Prime Minister shared the transformative impact the programme has had by inspiring mass movements aimed at societal changes. The milestone episode revisited some of the popular stories on the themes of women empowerment, promotion of local handicrafts and nature preservation. It also featured a conversation between DG UNESCO and Prime Minister on the ways in which India is attempting to put culture and education at the top of the international agenda, especially in the context of holding the Presidency of G20.
3. The live broadcast was followed by a Special Panel Discussion on the theme of ‘Mann Ki Baat: A Leader’s Connect, A Nation’s Voice’. The distinguished panelists comprised High Commissioner of India, H.E. Gopal Baglay; Chairman, Liberty Publishers (Pvt) Ltd & Derana Macro Entertainment (Pvt) Ltd, Mr. Dilith Jayaweera; Director of International Affairs at the Presidential Secretariat, Mr. Dinouk Colombage and Chairman of FCBkl.lk, Mr. Santosh Menon.
4. The panelists discussed the platform’s ability to integrate the power of the individual for collective good. They underscored the value of emotional connect for effective communication. High Commissioner emphasised that the participatory approach of Mann Ki Baat brings people at the centre of India’s growth story. It provides a platform for sharing, learning and creating people’s movements to achieve national goals.
5. The programme was attended by members of the Indian community, local dignitaries and friends of India in Sri Lanka.
6. Mann Ki Baat is a monthly radio programme hosted by the Prime Minister of India, Shri Narendra Modi, where he interacts with citizens of India on various contemporary themes and issues. These include government policies and reforms, India’s cultural legacy and diversity, extraordinary achievements of citizens as well as global events of relevance, among others.
