MP Harsha de Silva, Chairman of the Committee on Public Finance (COPF), disclosed directives issued to the Department of Inland Revenue (IRD) concerning Value Added Tax (VAT) regulations for local software enterprises. Speaking to ‘X’, he highlighted pivotal discussions addressing VAT applicability for both local and foreign software and digital service providers.
MP Harsha de Silva emphasized that during discussions, the IRD recognized the necessity for VAT to be applied based on the consumption of services, not solely on the location of businesses.
Despite anticipated administrative challenges, the COPF has instructed the IRD to devise a comprehensive plan within a week, aimed at establishing an equitable environment for all stakeholders.
The MP expressed pride in advocating for fairness in the treatment of local software companies like PickMe compared to their foreign counterparts such as Uber.
Treasury Secretary Mahinda Siriwardene testifies before the Parliamentary Committee to look into the matter of Financial Bankruptcy: says he did not declare a financial bankruptcy on 12th April ’22, and only announced the inability to pay some debts: asserts that therefore, the “financial bankruptcy” is a misinterpretation.
United Entrepreneurs’ Forum President Tanya Abeysundera claims there were nearly a million SMEs in this country, but that the economic management of President Ranil Wickramasinghe & CB Governor Nandalal Weerasinghe has caused that number to collapse to just about 300,000.
Japan stresses urgency of finalizing a Memorandum of Understanding on Debt Re-structuring between the Official Creditor Committee and the SL Govt: highlights the need for transparency & comparability in agreements with all Creditors.
SJB Badulla District MP Chaminda Wijesiri resigns as an MP: Nayana Wasalathilaka fills the Parliamentary seat thereby falling vacant.
GMOA & FUTA welcome the Govt’s recent decision to double the “Disturbance, Availability & Transport” allowance paid for Govt doctors and the 25% increase in the study allowance given to university teachers.
UK’s Princess Anne and spouse Vice Admiral Sir Timothy Laurence visit SL: the visit to mark 75 years of diplomatic relations between UK & SL: SL had been colonised by Portugal, Netherlands & UK for 443 years from 1505 to 1948.
Plantation Industries Minister Mahinda Amaraweera says there are around 20,000 private zoos in China, and many have expressed hopes of acquiring SL toque macaque monkeys for exhibition in their zoos.
Cabinet grants approval to a proposal to enhance 1,500km of roads under the 100,000km Roads Programme, where work had been inaugurated but suspended.
National Construction Assn Chairman Susantha Liyanaarachchi says the country’s business community is prepared to confront any potential measures of suppression by the Govt: his comments likely to be in response to a recent statement by Presidential Chief of Staff Sagala Ratnayaka that the Govt would take action against “individuals spreading misinformation regarding the recent increase in VAT”.
Afghanistan Cricket Board says Afghanistan will undertake an all-formats tour of SL in February’24: will play a one-off Test followed by 3 ODIs and 3 T20Is.
January 10, Colombo (LNW): Following the brutal murder of a 41-year-old woman near the Kahathuduwa interchange of the Southern Expressway, a significant breakthrough occurred as police apprehended a suspect at the Bandaranaike International Airport (BIA) in Katunayake.
The victim, an employee of the Civil Aviation Authority, fell victim to a heinous hacking incident in the Kahathuduwa area on the evening of January 9. SSP Nihal Thalduwa, the police spokesman, confirmed the arrest of a 45-year-old man believed to be responsible for the murder. He was intercepted at the airport while attempting to flee the country.
Residing in Madapatha, Piliyandala, the victim was en route home from work when the tragic incident occurred near the Kahathuduwa entrance to the expressway. Law enforcement authorities suspect the motive behind the murder to be related to an illicit affair.
Further investigation revealed that the arrested suspect had recently returned to the country after spending several years overseas, adding a layer of complexity to the case.
Reporters Without Borders (RSF) condemns the sentencing of Shangguan Yunkai to 15 years in prison on trumped-up charges. The investigative journalist known for his probes into the corruption of the Chinese officials must be released immediately.
On 5 January 2024, Chinese investigative journalist Shangguan Yunkai was sentenced to 15 years in prison and fined 380,000 Chinese yuan (around 50,000 euros) by court, in China’s central city of Ezhou, on five charges, including “picking quarrels and provoking trouble” as well as “selling fake medicines”.
Known for his investigations on the corruption of Chinese officials, Shangguan was detained on 20 April 2023. He had just published a report in a series of articles in which he revealed the wrongdoings of several officials and law enforcement in the city of Ezhou.
“This incredibly severe sentence, based on obviously trumped-up charges, clearly comes as a retribution against Shangguan Yunkai’s investigations on corruption. We urge the international community to build up pressure on the Chinese authorities to secure his release alongside all other journalists and press freedom defenders detained in the country.”
Cedric Alviani RSF Asia-Pacific Bureau Director
Shangguan, who is a former leading reporter of the state-run newspaper Legal Daily, in recent years ran several groups on WeChat, the leading social media in China, in which he shared evidence of hundreds of officials’ and criminals’ violations of discipline and law. In the 1990s, his investigations had already revealed the corrupt practices of Xu Penghang, then vice-governor of Hubei province, in central China, and contributed to the official’s dismissal.
Since 2012, in line with Chinese leader Xi Jinping’s crusade against the right to information, the Beijing’s regime has stepped up its crackdown on investigative journalists, such as Huang Qi, a seasoned Chinese journalist and the founder of independent media 64 Tianwang sentenced to 12 years in prison in 2019 for “leaking state secrets” and “providing state secrets abroad”, as well as Huang Xueqin, a figure of China’s #MeToo movement, who has been detained since September 2021 and who faces a 15 years jail sentence for “inciting subversion of state power”.
Ranked 179th out of 180 countries and territories in the 2023 RSF World Press Freedom Index, China is the world’s largest jailer of journalists and press freedom defenders, with at least 121 currently detained.
REPORTERS SANS FRONTIÈRES / REPORTERS WITHOUT BORDERS (RSF) Aleksandra Bielakowska Chargée de plaidoyer du Bureau Asie-Pacifique / Advocacy officer, Asia-Pacific Bureau CS 90247 75083 Paris Cedex 02 —
January 10, Colombo (LNW): Scheduled to begin today, the three-day visit of The Princess Royal and Vice Admiral Sir Timothy Laurence to Sri Lanka marks a significant milestone as both nations celebrate 75 years of diplomatic ties.
The British High Commission in Colombo announced this visit, highlighting the strong personal connections and shared interests that bind the UK and Sri Lanka, fostering a natural partnership within the Commonwealth. During her visit, The Princess Royal is set to engage in various activities, including meetings with President Ranil Wickremesinghe and interactions with businesses, charities, and the Save the Children Sri Lanka Programme.
In her capacity as President of Commonwealth War Graves, she plans to pay respects at a Commonwealth War Grave, signifying the importance of historical remembrance. The itinerary also features visits to religiously significant sites in Kandy and Colombo, as well as engagements with local communities and civil society representatives in Jaffna.
Notably, The Princess Royal’s last visit to Sri Lanka in 1995, as the patron of Save the Children, aimed to familiarize herself with the charity’s supported projects. This tour stands as the Royal family’s inaugural overseas visit for 2024, reflecting the enduring ties between the United Kingdom and Sri Lanka.
January 10, Colombo (LNW):Rainy conditions are expected to be continued in the Northern, Eastern, Uva, Central and Southern provinces today, and cloudy skies can be expected over most parts of the island.
Showers will occur at times in Northern, Eastern, Uva, Central, Southern and North-central provinces.
Heavy rainfall above 100 mm can be expected at some places.Showers are likely in the other areas of the island during the morning. Showers or thundershowers will occur at several places in these areas after 1.00 p.m.
The public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
January 09, Colombo (LNW): The Securities and Exchange Commission (SEC) has approved a regulatory framework to facilitate the issuance and listing of Infrastructure Bonds on the Colombo Stock Exchange (CSE).
This landmark decision by the SEC is aimed at fostering both foreign and local investments in infrastructure projects that will contribute to the economic development and well-being of the country.
Infrastructure Bonds aim to raise capital for vital projects such as roads, rail, water management, waste management systems, airports, seaports, mixed development projects, natural disaster protection systems, deep water ports, gas supply systems, utility projects, telecommunications infrastructure etc. which are integral to economic growth and sustainability.
SEC said it is necessary for Sri Lanka to develop a market for Infrastructure Bonds and raise the long-term capital needed for infrastructure projects.
The scope of infrastructure development in emerging economies has evolved significantly in recent decades and now comprises a broad range that includes traditional infrastructure projects such as power, oil and gas, and water as well as low-carbon, climate-resilient infrastructure such as renewable energy projects.
SEC carried out a study of comparable jurisdictions which had successfully used Infrastructure Bonds listed in the capital market to finance major development projects of their respective Governments.
Aimed at fostering development, transparency, and investor confidence in the capital market, the SEC has set a Capital Market Reforms Agenda which includes 12 key areas for action.
The introduction of infrastructure financing products are part of the Reforms Agenda and is strategically designed to propel the capital market to new heights and contribute significantly to its growth and sustainability.
The regulatory framework for Infrastructure Bonds has provisions to ensure investor protection, stringent due diligence, disclosure, and reporting requirements for issuers in order to keep investors informed on the performance of the infrastructure projects.
They will also inform utilization of proceeds and risk factors pertaining to the infrastructure projects as well as enforcement procedure for non-compliance with the regulatory framework.
Disclosure requirements include details of the project in which the capital raised is deployed or allocated, progress updates on how the project fulfils its core purpose and objectives and benefit to the public at large, and any deviations in the use or allocation of the capital proceeds.
This initiative reflects SEC’s commitment to create an enabling environment for long-term investments in infrastructure projects that support the nation’s economic growth and development.
SEC Chairman Faizal Salieh said: “The misallocation of capital is a root cause of our economic crisis. It is our objective to enable instruments that can raise long-term capital for development projects and provide investor assurance that such capital is allocated to the project’s stated purpose with transparency and accountability.
January 09, Colombo (LNW): The Sri Lanka Navy on Monday said it is ready to send a naval ship to the Red Sea to combat the threat to merchant vessel lines by Houthi rebels, joining countries such as India, in protecting the key waterway for global trade.
The announcement comes following last week’s orders of President Ranil Wickremesinghe, who had declared the cost as Rs 250 million every fortnight.
The Iran-backed Houthi rebels have launched more than 20 attacks on merchant ships in recent weeks, claiming to take revenge against Israel for its military campaign against Palestinian terror group Hamas in Gaza.
These attacks have sharply raised goods’ transportation costs between Asia and Europe.
Newswire Lanka quoted Navy spokesman Captain Gayan Wickramasuriya as saying that but the exact date of deployment is yet to be confirmed.
The vessels would be covering the Red Sea, Arabian Sea, Gulf of Aden, and connected sea lanes.
Captain Wickramasuriya went on to say that initially one ship would be deployed as part of Operation Prosperity Guardians, the Naval operation underway at the Red Sea, and adjoining trade routes.
Discussions will be held and based on the warship’s capability it will be deployed to any one of the sea lanes requiring protection from the Houthi rebels, the Newswire Lanka quoted him as saying.
He also stated that the deployment of more ships or swapping of ships will take place based on the current requirements and economic situation of Sri Lanka, and a discussion on the matter.
Wickremesinghe, also the defence minister, has come under criticism for the decision at a time when the island was going through its economic crisis.
Presidential sources, however, said the cost of deploying the vessel would be much less compared to the losses incurred by the Colombo port if the vessel traffic is hampered due to Houthi attacks.
The Houthi attacks centred on the Red Sea’s Bab al-Mandeb southern chokepoint have disrupted shipping in a waterway that carries about 12 per cent of global trade.
At President Ranil Wickremesinghe’s behest, the Sri Lanka Navy is preparing to send ships to the Red Sea and surrounding waters.
Sri Lanka Navy Spokesperson Captain Gayan Wickramasuriya said that the deployment will be in support of Operation Prosperity Guardian, a US-led initiative aimed at combating Houthi rebel activity in Yemen.
While no specific date has been announced, Sri Lanka Navy Spokesperson Captain Gayan Wickramasuriya confirmed they are making arrangements for the deployment of vessels to the Red Sea.
January 09, Colombo (LNW): Sri Lanka’s central bank will be lowering interest rates further in an unexpected move to boost growth, while projecting inflation would remain subdued over the medium term in the second quarter this year.
Helped by its bailout by the International Monetary Fund, the South Asian island nation is recovering from its worst financial crisis in seven decades and awaiting the finalisation of its first review from the global lender.
Economists expect Sri Lanka’s central bank to pause now but resume its rate cut cycle in the second quarter of this year to bolster the island nation’s recovery after an unprecedented crisis.
With this reduction, further easing will be paused in the near term, it added, given that space exists for market interest rates to adjust downwards and reiterated the need for that to happen to ease domestic monetary conditions further.
The standing lending facility rate, currently at 10%, is seen to stay on hold for a quarter and be followed by a cut of 50 basis points in the April-June period, according to the latest median estimates in a Bloomberg survey.
After reducing borrowing costs by 650 basis points last year, Sri Lanka’s central bank signaled it will pause as the economy gradually turns around and inflation bottoms out.
“While the economy is now recovering from the political and economic crisis, it remains very weak, with output around 20% below its pre-crisis peak,” said Gareth Leather, economist at Capital Economics.
The central bank will keep monetary policy unchanged at its next review, but the pause won’t last for long, he said, penciling rate cuts of 200 basis points this year.
With demand gathering pace, analysts expect consumer prices to inch up. The survey showed economists raising their outlook on headline inflation through 2024, with the first and second quarters’ forecasts at 6% and 7%, respectively.
The International Monetary Fund has so far disbursed a total of $670 million under its bailout plan, helping Sri Lanka in overcoming shortages of food, fuel and raw materials. Authorities are in the process of restructuring the nation’s debt to secure more funds.
Sri Lanka’s economy is seen to expand 3.3% this year from a contraction of 2.5% in 2023, the survey showed.
January 09, Colombo (LNW): Sri Lanka plans to start claiming credits from greenhouse gas emission savings in green projects such as hydropower and garbage management, joining other developing Asian countries in profiting from the Kyoto Protocol and the Paris Agreement.
The government is now strengthening the framework for monitoring, reporting and verification, and for registry needs and made internationally compatible, Finance Ministry sources said.
It has ambitious carbon-reduction targets under its Nationally Determined Contribution to the United Nations Framework for Combatting Climate Change.
Quantum Commodity Intelligence – A Sri Lankan firm which has teamed up with the country’s environment ministry in a blockchain-based initiative to create a new carbon standard and registry is planning to launch a carbon credit marketplace in 2024.
SavePlanetEarth said its Planetary Carbon Standard (PCS), a strategic partnership with the Sri Lanka Climate Fund under the Ministry of Environment, uses blockchain technology, to ensure transparency and traceability in carbon credit transactions plus advanced remote sensing and AI technologies for precise monitoring and verification of carbon sequestration projects.
The PCS website describes it as “a simplified version of existing carbon standards,” developed by SPE for “assessing, monitoring, estimating, verifying, and validating carbon sequestration of afforestation and reforestation projects, as well as evaluating carbon negative effects of tenewable energy projects.”
“Despite its potential, the carbon credit market faces significant challenges that undermine its effectiveness and credibility,” SPE said.
“Greenwashing, quality and integrity of credits, double counting, and complexity and accessibility are critical issues that SavePlanetEarth’s Planetary Carbon Standard aims to address.”
The company said it has developed a digital platform to streamline the carbon credit certification process, adding that the platform “democratizes access to carbon trading, allowing project owners of all sizes to participate easily and effectively.”
SPE plans to launch its marketplace in 2024, aiming to provide “a transparent, efficient, and reliable platform for trading carbon credits,” backed by the technology that powers the PCS.
“With millions of hectares under application from Africa and a significant amount of credits already approved for sale, the marketplace is poised to set new standards in the carbon credit industry,” SPE said.
The PCS website currently lists three verified projects, one of which – the Tokenize Amazon Project in Brazil – has just over 1.7 million credits for sale.
The other two projects listed – a bamboo afforestation project in Kenya and a hydropower renewable energy project in Sri Lanka – currently have no credits for sale, although the Kenyan project has 900,000 credits under evaluation.
Sri Lanka’s Carbon Crediting Scheme (SLCCS) supports greenhouse gas emission reduction and enables companies to earn SL Certified Emission Reduction Units (SCERs) for their efforts to reduce emissions.
The government will have to set a price benchmark by announcing what its carbon tax rate will be for the next three to four years.
