By: Staff Writer

Colombo (LNW): Sri Lanka is set to enter the Artificial Intelligence international race integrating this extraordinary technology espionage with the country’s ongoing digitization program, top level official sources divulged.

A presidential task force will be formed to promote Artificial Intelligence (AI) usage in the country while the government is planning to allocate RS 1 billion for AI technology next year.

President Ranil Wickremesinghe has commented on the potential of the most modern technology to contribute to the country’s development, during a recent discussion at the President’s Office.

He has instructed officials from the Ministry of Technology to form a presidential task force comprising AI experts and prepare a concept paper to promote AI usage in the country.

The President noted that the current annual contribution to Sri Lanka’s gross national income through computer and information technology is around US$ 1.9 billion, with an undisclosed amount from AI technology.

He instructed officials to develop a system to track AI contributions. Additionally, he stressed the importance of taking prompt action to increase AI’s contribution to the gross domestic product in the coming years, according to the Presidential Media Division.

“The government has identified the modernization of agriculture and fisheries, tourism, and improvement of supply centers as urgent areas for development in the economic reforms, the President claimed.

As we see the world progressing with artificial intelligence, it is crucial for Sri Lanka to focus on this technology and invest in it.

The government is aiming to create a digital economy and it will require a lot of effort in the coming months.

Fortunately, the government has already prepared the necessary plans. However, it is important to note that only 2500 engineers are produced in the

The President has suggested producing at least 10,000 engineers to meet the demands of the digital age.

When it comes to artificial intelligence, we should consider Singapore and India as role models. It is true that East Asia, South Korea, Japan, and China are making progress in artificial intelligence, but no country in West Asia has reached that stage yet, he added.

This presents a clear opportunity for us, and we must have strategies in place to implement this program promptly. In order to achieve this, we should start by improving university research departments. He pointed out

During the discussion on the integration of AI technology into the wider model of digitization in Sri Lanka, the Minister of State for Technology, Kanaka Herath, and the Secretary of the Ministry, Niranjan Gunawardena, a Senior Professor, shared their views.

The participants focused on the development of infrastructure necessary for related research activities and the latest trends in the field. The scholars who attended the discussion also expressed their views on future steps that need to be taken for the advancement of the field, the PMD said.

By: Staff Writer

Colombo (LNW): Since last April, when Sri Lanka declared sovereign default, the country has gone through one crisis after another, the disbursement of US $ 333 first tranche of the US$ 3 billion International Monetary Fund’s Extended Fund Facility was the only sum of forex received by the country one year after seeking IMF facility.

The Government plans to raise a sum of US $ 3 billion from this facility for the next four year period keeping faith on multilateral international financial agencies such as the World Bank and Asian Development Bank and donor countries to pour more millions of dollars into Sri Lanka coffers .

The WB and ADB have pledged over $500 million while unlocking its development project assistance which was suspended immediately after the infamous declaration of preemptive debt default by Central Bank Governor Nandalal Weerasinghe on April 12 2022.

Since then all bridging financing and other financing arrangements have dried up completely and the country had been trapped in a serious forex shortage making it difficult to provide dollars to import basic essential commodities even after defaulting on around $3 billion forex debt, comprehensive analysis revealed.

Since seeking IMF bail out loan, Sri Lanka inflation has risen to over 50 percent while treasury bill interest rates have soared past 30 percent per annum, official data showed..

In the period from April 2022 to December 2022, the additional interest that the government has had to bear because of the rise in interest rates has been computed at an astronomical Rs.840 billion.

The Sri Lanka Rupee will depreciate and the exchange rate will face serious pressure, particularly when the currently restricted imports are allowed.in keeping with the IMF agreement.

When the Government and the CB announce the time table on lifting exchange restrictions and multiple currency restrictions and multiple currency practices on June 30, 2023, the uncertainty will further escalate, the risk analysis report revealed.

Forex reserve accumulations will be under severe pressure and it is likely to fall short of the targets. Further if the CB is unable to stabilize the exchange rate the exchange rate will encounter wide fluctuations, making it impossible for local enterprises to do business, the report predicted.

However, it is vital that the government recognize the short-term implications of this ongoing tax restructuring as it imposes further burdens on the poorest households in society during a time of soaring energy and food prices.

The IMF statement addresses the need for social safety nets but a greater emphasis is required to ensure that the benefits of the EFF program reach those struggling most with the economic crisis.

Several analysts argue that all an IMF bailout does is encourage capital markets and foreign investors to resume the flow of funds into the country.

They contend that Sri Lanka’s economic problems are much deeper than its lack of access to capital via these avenues, and observe that, if the country is to recover fully, it must prioritize essential imports, cut back wasteful expenditure and promote food security.

By: Staff Writer

Colombo (LNW): In the wake of the entry of three multinational oil companies into the fuel import, distribution and sales the need of a state regulator has become vital to achieve expected positive results several veteran economists claimed.

The Public Utility Commission (PUCSL) is empowered to regulate all 5 fuel suppliers. But on the other hand, the government is trying to weaken the PUCSL. There should be an open competition for fuel pricing, they said.

Cabinet approval granted to award licenses to Sinopec, United Petroleum, Australia and RM Parks of USA in a collaboration with Shell Plc to enter the Fuel Retail market in Sri Lanka. These companies will be allowed to import, store and distribute petroleum products for 20 years.

State minister for finance recently declared the amount of accumulated losses of SOEs including Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation (CPC) is Rs1029 billion.

But the truth is that the government has taken a large portion of money from the CPC (and to some extent from the CEB) as taxes.

The Government and the regulator should not allow energy cartels to be formed and black mail the government and country. This was evident during Mrs Bandaranaike’s tenure in 1961 which resulted in the nationalization of fuel companies, former Power and Energy Minister Patalee Champika Ranawake said.

If we liberalize the fuel markets, competition should prevail, and a powerful regulator must exist. If not it will be a disastrous experience than the current CPC, he added

The Government has decided to unbundle CEB as well. Independent cost unit/ components may be formed according to the committee report — six generation units, two transmission units, 4 distribution units and a few other units to run the CEB-owned assets and subsidiaries.

Most professionals agree that CEB should have four distribution companies similar to LECO (CEB subsidiary).

The problem is the consumer is restricted to one choice in his living area. Only one electricity supplier exists.

In the meantime, the ministry is to introduce the WHEEKING PRINCIPAL where a consumer can buy from a particular independent power producer by minimal understanding. So, it is a limited open market.

Power is of paramount importance in all economies. Destabilization in the power and energy sector will lead to political destabilization.

This was the case in Lebanon, Greece, Pakistan, and other countries in the recent past. I wrote a book, “Power and power” (2014) to coin the theory on the correlation between political power and physical power (energy), citing various experiences around the world and in particular Sri Lanka.

It has been observed that the political elite, criminal bureaucratic elements and power sector oligarchs work in unison and siphoned off big money from the Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board (CEB) and finally from the consumers’ pockets.