Colombo (LNW): The Sectoral Oversight Committee (SOC) on International Relations convened in Parliament on the 21st, chaired by MP Akila Ellawala in lieu of MP Namal Rajapaksa, to discuss the roles and future plans of various departments within the Ministry of Foreign Affairs.
Officials from the Consular Affairs Division, the United Nations and Human Rights Division, and the National Oceanic Affairs Committee Secretariat, all operating under the Ministry of Foreign Affairs, were summoned to provide insights into their current activities and roles.
During the session, the Committee delved into the functions of these departments, with a particular focus on the ongoing conflict between Israel and Palestine in the Middle East.
Additionally, MP S. M. M. Muszhaaraff sought information on the relationship between the Kingdom of Saudi Arabia and Sri Lanka, and officials confirmed the existing ties between the two nations.
A notable concern raised by the Committee was the comparatively high prices of tourist accommodations, especially in hotels around Colombo. The Committee emphasised the need to address this issue to enhance Sri Lanka’s competitiveness in the tourism sector.
Youth representatives participating in the Sectoral Oversight Committee also brought attention to the unsanitary condition of Negombo beach, expressing concerns about the negative impact on tourism due to its current state.
Among the attendees at the Committee meeting were Members S. M. M. Muszhaaraff and Madhura Withanage. Officials representing various entities, including the Ministry of Foreign Affairs, Department of Immigration, Sri Lanka Export Development Board, Sri Lanka Investment Promotion Board, Sri Lanka Tourism Development Authority, and Sri Lanka Tourism Promotion Bureau, were also present to contribute to the discussions.
Colombo (LNW): State Minister of Finance Shehan Semasinghe announced that beneficiaries of the ‘Aswesuma’ welfare programme can collect their September instalments starting Thursday (23).
An amount of Rs. 8.571 billion has been released to banks for 1,377,000 Aswesuma beneficiary families.
The State Minister assured that instalments for October, November, and December will be disbursed before the end of the year, with new applications being accepted in December.
Additionally, arrears for the elderly, kidney patients, and disabled individuals have been settled, he confirmed.
World (LNW): New York Governor Kathy Hochul stated that the crash and explosion on the U.S. side of the Rainbow Bridge, connecting the U.S. to Canada at Niagara Falls, was not a terrorist attack.
The incident involved a vehicle speeding toward a border checkpoint, hitting a booth, exploding, and going airborne.
The driver and passenger were killed, while one booth agent sustained injuries. The investigation is ongoing, and the Rainbow Bridge remains closed.
No evidence of terrorism or explosives has been found. President Joe Biden and Canada’s Prime Minister Justin Trudeau are monitoring the situation, with increased security measures in place at border crossings.
U.S. Sec. of Homeland Security Alejandro Mayorkas confirmed that the incident does not appear to be terror-related.
Colombo (LNW): Showers or thundershowers will occur at several places in most provinces of the island after 01.00 p.m, and fairly heavy showers about 75 mm are likely at some places in Central, Sabaragamuwa, Uva, Southern and Western provinces, the Department of Meteorology said in its daily weather forecast today (23).
Showers may occur at some places in Western provinces and in Puttalam district during the morning too, the statement added.
The 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 off the coast extending from Mannar to Hambantota via Colombo and Galle. Showers or thundershowers will occur at a few places in the other sea areas around the Island particularly during the afternoon or night.
Winds:
Winds will be North-easterly or variable in direction over the sea areas around the island. Wind speed will be (20-30) kmph.
State of Sea:
The sea areas around the island will be slight.
Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Sri Lanka’s tourism industry is experiencing a significant rebound, with over 100,000 arrivals recorded as of November 21, 2023. This figure surpasses the total arrival figures for both October and November of 2022, demonstrating the country’s growing appeal to international travelers. The positive trend is expected to continue throughout the year, with Sri Lanka on track to surpass the 1.55 million arrivals mark for 2023.
In anticipation of the highly anticipated SriLankan Airlines Global Sales Conference, top travel agents and tour operators from various regions, including the Indian Subcontinent, the Far East, Europe, the Middle East, and Australia, have begun arriving in Sri Lanka. The conference, scheduled to take place from November 22 to 24, 2023, in Hambantota, aims to showcase Sri Lanka’s unique offerings and strengthen SriLankan Airlines’ operational plans. Approximately 200 foreign travel trade officials are expected to participate in the event and will also embark on tours of the island before the conference commences.
In a landmark address at the Sri Lanka Green Hydrogen Symposium 2023, President Ranil Wickremesinghe outlined a comprehensive vision for Sri Lanka’s role in addressing climate change, emphasizing sustainable practices and embracing cutting-edge green energy technologies.
President Wickremesinghe opened his speech by drawing attention to the alarming findings of the UNF emission report for 2023. Expressing concern over the potential 3-degree °C global temperature increase by the end of the century, he underscored the need for immediate global action, lamenting the unfulfilled emission reduction promises of developed nations. “It says by the end of this century we will be about 3 degrees °C higher. Just imagine what that is going to be. And the cuts which were promised by the developed nations have not taken place.
But even with that, we would come to 2.5-degrees °C. So then we have to come down to 1.5 degrees °C. That’s what our target is for 2030.”
Sri Lanka’s commitment to the cause was a focal point in the President’s discourse. He articulated two key objectives: advocating for the 1.5-degree °C target at COP28 and showcasing the nation’s commitment to contributing significantly, irrespective of its lower pollution levels compared to more industrialized countries.
The energy landscape took centre stage in President Wickremesinghe’s address. Citing the UN Secretary-General’s call for tripling renewable energy capacity by 2030, he positioned this as a pivotal opportunity for Sri Lanka to transform into a green energy exporter. The President specifically highlighted the vast potential of solar and wind power in the country’s expansive dry zones.
Using historical references, President Wickremesinghe proposed a bold shift, envisioning Sri Lanka as an energy exporter akin to ancient civilizations exporting grain. “Now we can become an exporter of energy. Let’s go for it. That is my idea,” he declared, underlining the nation’s potential in harnessing renewable resources.
Green hydrogen emerged as a key focus in the President’s vision, with Sri Lanka aspiring not only to achieve energy independence but also to become a regional hub for green hydrogen supply.
To realize these ambitious goals, the President announced plans for a new committee and an energy transition law, signalling a commitment to a holistic decision-making process regarding new energy projects. Acknowledging economic challenges, he stressed the importance of a thorough review to ensure sustained, long-term benefits.
President Wickremesinghe referenced the cancellation of the Norochcholai project in 2002. He pointed out that the decision was made due to economic considerations and the pursuit of a more modern version funded by the Japanese. However, he acknowledged that this decision faced opposition and Norochcholai now poses a challenge for the country, prompting a reassessment of its utility and future role.
The President also expressed dissatisfaction with the downgrading of sustainable energy in favour of other sources, such as wind power. He reflected on the consequences of mismanaging the energy portfolio, emphasizing the need for a holistic view and a re-evaluation of the long-term power generation plan.
In his concluding remarks, President Ranil Wickremesinghe reaffirmed Sri Lanka’s unwavering commitment to green energy and called upon experts to advise the government on the path forward. “We are committed to green energy and we are going ahead,” he declared, positioning Sri Lanka as a leader in sustainable and environmentally conscious policies.
In the meantime, “The Sri Lanka National Hydrogen Road Map” was presented by the Minister of Power & Energy Kanchana Wijesekara to President Ranil Wickremesinghe. This roadmap is a collaborative effort between the Petroleum Development Authority of Sri Lanka (PDASL) and Greenstat Hydrogen India, with the invaluable support of the United States Agency for International Development (USAID),
which charts a course for Sri Lanka’s energy landscape transformation.
Addressing the symposium, US Ambassador H.E. Julie J. Chung, Indian High Commissioner H.E. Gopal Baglay and the British High Commissioner H.E. Andrew Patrick commended on the actions taken by Sri Lanka and pledged their unwavering support for the country’s commitment to Green Hydrogen transformation.
The symposium, organized by Greenstat India in collaboration with PDASL and USAID, serves as a testament to Sri Lanka’s determination to spearhead the transition toward a sustainable and green future, reflecting a comprehensive and forward-thinking approach under President Ranil Wickremesinghe’s leadership.
This event was graced by notable personalities such as Mr. Sagala Ratnayaka; Senior Advisor to the President on National Security and the Chief of Staff, Mr. Sturle Pedersen; Chairman of Greenstat India, Mr. Surath Ovitigama: Chairman of PDASL and Official dignitaries of Greenstat India, USAID, stakeholders and other collaborators.
State Minister for Plantations, Enterprise Reforms and Finance, Mr. Ranjith Siyambalapitiya, has announced that a dedicated allocation of Rs. 10 billion has been reserved for potential future elections. This provision, while not explicitly outlined in the budget proposals, has been included in the estimates.
Furthermore, the State Minister has conveyed that the Executive Committee of the International Monetary Fund (IMF) is scheduled to deliberate on the release of the second instalment of the extended credit facility to Sri Lanka on December 6th.
State Minister for Plantations, Enterprise Reforms and Finance, Mr. Ranjith Siyambalapitiya, made these remarks during his participation in a press briefing held at the Presidential Media Centre (PMC) yesterday (21), under the theme ‘One Way to a Stable Country’.
Speaking further, State Minister Siyambalapitiya highlighted the challenges faced in formulating this year’s budget. He underscored that in 2023, the government’s revenue experienced a 16% decline from the targeted amount, a circumstance attributable to the prevailing negative economic conditions. Addressing the inherent limitations faced during the budget preparation, he acknowledged the constraints in pursuing objectives such as maintaining a robust primary account.
Moreover, in addressing the budget deficit, when expenditures surpassed income, resorting to borrowing became necessary. However, the forthcoming year presents a constrained borrowing environment, with limited space available. Previously, local borrowing was facilitated through various accessible means, but with the implementation of the new Central Bank Act, borrowing has been subject to restrictions. The government now has the authority to borrow only in response to sudden announcements by the Central Bank.
Despite accusations labelling this year’s budget as an election-oriented one, it is crucial to recognize the imperative of responding to the challenges faced by a society under considerable strain. In such a context, it becomes obligatory to address the needs of those significantly impacted by economic adversity.
We have allocated Rs. 10 billion for upcoming elections, although this provision was not formally presented in the budget proposals but has been factored into the estimates.
Furthermore, it is essential to recognize that no nation has advanced without a sustainable stream of tax and government revenues. When we assumed these responsibilities, the tax structure was predominantly comprised of 80% indirect taxes and 20% direct taxes. Over time, we have strategically reduced the indirect tax rate, bringing the direct tax rate closer to 30%.
Additionally, the State Financial Management Responsibilities Act No. 03 of 2003 mandates maintaining the budget deficit at 5%, a target that, in practice, has proven challenging. Over the last two decades, this target was achieved only in 2016 and 2017. Sustaining this requires a rigorous approach involving substantial expenditure reductions and revenue generation. Notably, public welfare expenditure, which stood at 65 billion, is projected to rise to 209 billion this year. Efforts are underway to implement practical reforms, including amendments to certain laws, to align legislation with operational realities. Activating dormant tax revenues is also a priority in our pursuit of fiscal sustainability.
Moreover, there is a potential to elevate the state income ratio from its current 8.3% to 10.1% by the end of this year, and following the implementation of the 2024 budget, this ratio could further rise to 12.3% by the close of that year. Regardless of the political party in power, sustaining a nation necessitates the continual growth of state revenue.
In a remarkably short period, we successfully alleviated the frustrations associated with the historical instability of the state. Concurrently, efforts are underway to enforce the Anti-Corruption Act, aligning with the commitments made under the agreement with the International Monetary Fund.
Furthermore, plans are in place to conclude the electronic tax information gathering program and the Revenue Administration Management Information System 2.0 (RAMIS 2.0) project by the year’s end. The upcoming weeks are deemed pivotal for Sri Lanka’s economic trajectory. On December 6, the Executive Committee of the International Monetary Fund is set to convene and deliberate on the release of the second instalment of the extended credit facility. Furthermore, discussions and finalization of the proposal for the restructuring of bilateral debt are scheduled.
Colombo (LNW): Sri Lanka has conveyed its preparedness for the second phase of the Belt and Road Initiative, with China expressing a keen interest in extending the China-Myanmar Economic Corridor (CMEC) to include Sri Lanka.
This was revealed when the Special envoy of the Chinese President, State Counsellor Shen Yiqin made a courtesy call on Sri Lankan President Ranil Wickremesinghe on Monday in Colombo.
The Chinese Special Envoy Yiqin stated that China is also prioritizing the extension of the China-Myanmar Economic Corridor to Sri Lanka. Additionally, both parties agreed to expedite the implementation of the China-Sri Lanka Free Trade Agreement.
The China-Myanmar Economic Corridor (CMEC) is a strategic economic development initiative under the broader BRI. It focuses on fostering economic cooperation and connectivity between China and Myanmar through the development of key infrastructure projects.
These projects include transportation networks, energy pipelines, and other initiatives aimed at enhancing trade and economic ties between China and Myanmar.
President Wickremesinghe also expressed gratitude for China’s support to Sri Lanka, notably acknowledging their assistance in the country’s debt restructuring programme. He extended sincere thanks to the Chinese President and the government for their invaluable support in this regard.
Special Envoy Yiqin reaffirmed China’s enduring support to Sri Lanka and emphasised her commitment to strengthening relations between the two countries.
According to a communique issued by the President’s Media Division, President Wickremesinghe has said that “countries such as Sri Lanka, participants in the Belt & Road initiative, are prepared to embark on the second phase of the initiative, which is expected to make a more substantial economic contribution.”
President Wickremesinghe also expressed Sri Lanka’s desire to augment cooperation between the two countries in the fields of tourism, sports and agriculture.
He highlighted that both the Hambantota Port and Port City are currently prepared for investment opportunities.
During the meeting, he detailed the steps taken by Sri Lanka to join the Regional Comprehensive Economic Partnership (RCEP) and reaffirmed the country’s commitment to maintaining the Indian Ocean as a freely navigable and peaceful region, free from global geopolitical rivalries.
A meeting between a delegation led by State Councilor of China Hon. Shen Yiqin and Speaker Hon. Mahinda Yapa Abeywardena was held at the Parliament Nov- (20). Cabinet Ministers, State Ministers, Members of Parliament, Secretary General of Parliament Ms. Kushani Rohanadeera, Chief of Staff and Deputy Secretary General of Parliament Mr. Chaminda Kularatne, and Chinese Ambassador to Sri Lanka Mr. Qi Zhenhong were present at the occasion.
The Speaker expressed his gratitude for the support provided for Sri Lanka's economic development as well as all kinds of cooperation provided by China in Sri Lanka. Also, the Speaker said that the development activities being carried out in the country with the cooperation of China, including the Colombo Port City, are being successfully implemented.
The speaker stated that he hopes to further strengthen the bilateral relations between the two countries.
State Councilor Shen Yiqin, who spoke here, stated that the Chinese government is eager to provide the necessary financial support for the emergency humanitarian assistance, including the provision of uniforms for the school children of Sri Lanka.
Also, State Councilor said that through the development of political, economic, cultural and people-to-people relations, the mutual trust and practical cooperation between the two countries will grow and thus the close relationship between the two countries will be further strengthened. She further stated that she hopes to work with Sri Lanka to conclude the Comprehensive Free Trade Agreement as soon as possible.
Member of Parliament Hon. Thalatha Athukorala informed the delegation about the measures taken by the Women Parliamentarians’ Caucus for the advancement of women in Sri Lanka and requested China’s support for the future activities of the Caucus.
Colombo (LNW): Agreement for a 5 billion US dollar refinery to be built by China in Sri Lanka’s Hambantota district will be submitted to cabinet for consideration next week, Energy Minister Kanchana Wijesekera said.
“We have included in the agenda of the cabinet the awarding of the contract for the Hambantota new oil refinery,” Minister Wijesekera told parliament.
“If the cabinet approves, after the agreement is signed, it will be the single largest investment project ever. A 5 billion US dollar investment.”
The project will take about four to five years to complete. “After it is completed, it will create jobs, provide energy security and give an opportunity to increase exports,” Wijesekera said.
Sri Lanka is giving state land in the Southern Hambantota district for the project. China’s Sinopec was awarded the project after the second short-listed contender pulled out, Minister Wijesekera said last month.
The tender for Sri Lanka’s proposed $5 billion oil refinery in the investment zone near Chinese built Hambantota port has been awarded to Sinopec, a state minister confirmed. .
China’s Sinopec and Vitol Asia based in Singapore are the two firms shortlisted out of seven companies that responded to an expression of interest early this year.
“We have issued the RFPs (request for proposal) for the two firms shortlisted. They have submitted the RFPs,” State Power & Energy Minister D V Chanaka said.
“There is a process which involves Cabinet approvals and Ministries. Our expectation is to award the tender within a minimum three weeks.”
Sovereign debt defaulted Sri Lanka has been struggling to attract foreign inflows. The refinery is part of a strategy to attract more foreign investments into the bankrupted nation.
Government sources say the refinery was awarded to Sinopec which has already started retail fuel supply and is competing with LIOC, a fully-owned subsidiary of Indian Oil Corporation.
Sri Lanka received seven responses to an expression of interest (EOI) to build the export-oriented oil refinery in Hambantota, in the island’s Southern coast of Hambantota and next to a Chinese-owned port.
Grant & Shearer Ltd from Nigeria, Sinopec from China, Petrichor Capital from Malaysia, Vitol Group from Singapore, Martin Tejarat from Iran, Dandeniya Engineering Sales and Service Syndicate, a local-based company and Sri Lanka’s Harree Management with UAE’s Marka Invest submitted their expression of interest early this year.
