Colombo (LNW): The Defence Ministry of Sri Lanka has approved the Chinese research vessel ‘Shi Yan 6’ to carry out geophysical and seismic survey on Sri Lankan waters in collaboration with the National Aquatic Resources Research and Development Agency (NARA).
The approval was granted upon a request by the NARA and the Foreign Ministry, according to a Ministry Spokesperson.
The survey vessel’s arrival in the Sri Lankan waters sparked grave security concerns by India, and subsequently led to many speculations on and off the media.
The vessel had previously visited Sri Lanka on April 20, 2022, and remained in the Sri Lankan waters for a period of ten days, attracting the attention of many parties.
Over the past years, a large number of Chinese vessels had reached Sri Lankan ports, and these include the Shi Yan 6, Shi Yan 1, Shi Yan 3, Xiang Yang Hong 3, Xiang Yang Hong 18, Xiang Yang Hong 1, Xiang Yang Hong 6, and Xiang Yang Hong 19.
Colombo (LNW): Anyone involved in illegal pyramid schemes will be punishable by criminal law, said Finance State Minister Ranjith Siyambalapitiya, introducing new measured aimed at addressing the issue of pyramid schemes.
In a statement, the Ministed pointed out that both individuals are organisations involved in such schemes will be held accountable under criminal law.
The move comes in in the government’s initiative of strengthening regulations and penalties associated with such fraudulent financial schemes.
He added that the government of Sri Lanka intends to collaborate with law enforcement agencies and financial institutions to swiftly detect and take action against illegal schemes such as pyramid schemes.
Colombo (LNW): The Heat Index is expected to increase up to ‘caution’ level at some places in North-Central, Uva and Eastern Provinces and in Vavuniya and Mullativu Districts, warned the Natural Hazards Early Warning Centre of the Department of Meteorology today (27).
The ‘caution’ level heat index advisory, accordingly, has been issued to 09 districts, and will be in effect till tomorrow (28).
The public, therefore, is urged to stay hydrated and take breaks in the shade as often as possible, check up on the elderly, the sick and the children, limit strenuous outdoor activities, and wear lightweight and white or light-coloured clothing.
Colombo (LNW): The use of Co-Amoxiclav, a class of antibiotics, has been temporarily suspended amidst reports on the death of a patient at the Colombo National Hospital, who was treated with the said antibiotic, announced Health Minister Keheliya Rambukwella.
Early reports claimed that a 50-year old person who had arrived from Warakapola to receive treatment at the Colombo National Hospital for a cut wound died upon being administered the antibiotic.
There were 21,000 vaccines in the relevant drug category, and 18,000 of them have been used so far, but the situation is reported only in relation to one vaccine amongst them, the Minister said.
An investigation is also underway through the expert committee appointed to probe into issues related to medicines, he added.
Colombo (LNW): Amidst the challenges of rising interest rates and diminishing export demand that have dampened the post-COVID economic recovery across several Asian nations, Sri Lanka stands uniquely poised. As the sole country in the region to have grappled with a default on its official debt amidst the dual strains of the pandemic and the Ukraine conflict, Sri Lanka now finds itself basking in a brighter economic landscape. These days signal a newfound period of growth for Sri Lanka’s economy, setting it apart from its regional counterparts.
Sri Lanka’s economic landscape is experiencing a remarkable revival as its tourism revenue and remittances from overseas workers make a triumphant return. Overcoming a daunting inflation rate that soared to 70% September 2022, the nation has seen a remarkable drop in inflation to 6.3% by July this year. This impressive feat prompted the Central Bank of Sri Lanka to implement a 4.5 percentage point reduction in its benchmark interest rate since June.
The challenges of yesteryears, including the aftermath of the 2019 Easter Sunday incident that caused a dip in tourism earnings, compounded by the COVID-19 pandemic, have been overcome. Notable factors such as heavy external borrowing, unwarranted tax cuts, and internal political discord have collectively impacted investor sentiment and the nation’s macroeconomic stability.
The seismic tremors of the Ukraine war in the preceding year reverberated globally, dealing a crushing blow to Sri Lanka’s economy. Depleted foreign reserves coupled with surging costs of vital imports pushed the nation to a critical juncture. International capital markets remained elusive due to waning faith in repayment capacity amid escalating global interest rates.
In an economic cascade, the Central Bank of Sri Lanka resorted to printing money to bridge governmental deficits, triggering a harrowing freefall of the Sri Lankan rupee and an inflationary upsurge. As daily essentials became scarce and prices soared, a crescendo of public discontent destabilized the administration, culminating in the departure of President Gotabaya Rajapaksa in July 2022. Amidst this tempest, the fabric of Sri Lanka’s GDP and economic stability frayed.
“In assuming leadership after Gotabaya Rajapaksa, Ranil Wickremesinghe swiftly embarked on a strategic path to restore equilibrium to Sri Lanka’s economy. By initiating constructive dialogues with the International Monetary Fund for financial assistance and garnering interim backing from neighboring nations like India, he displayed adept crisis management. In a bid to secure the IMF’s endorsement, the administration undertook bold yet indispensable measures, encompassing hikes in fuel and electricity prices, tax rate adjustments, and tax base expansion,” Kamil Kuthubdeen Chairman of Global Business Trust LLC Dubai said.
“Notably, under the stewardship of a new central bank governor, a resolute tightening of benchmark interest rates by an impressive 8 percentage points throughout 2022 was undertaken, aimed at tempering inflationary pressures and ushering in a measure of macroeconomic stability, ultimately contributing to the revitalization of Sri Lanka’s GDP trajectory,” Kamil Kuthubdeen added.
The year’s outset witnessed an impressive upswing with tourism revenue nearing $1 billion and remittances soaring to $3 billion, benchmarks projected to hold strong in the latter half. While these figures still fall shy of pre-COVID levels, the nation’s trajectory back to its $4.4 billion tourism revenue and $7 billion remittance glory days appears attainable, vital for managing the current-account deficit and fostering macroeconomic stability and expansion.
In the wake of Sri Lanka’s economic resurgence, endorsed by the IMF’s pivotal support granted in March, projections indicate that the nation’s current-account deficit will stabilize at an approximately 1.5% of GDP from this juncture onward. This judicious ratio, particularly pertinent for emerging economies reliant on fuel and food imports, underscores the sustainable trajectory.
The successful domestic debt restructuring initiative executed by the government has effectively mitigated uncertainties, notably within the domestic banking landscape. Concurrently, discussions with external creditors to restructure external debt exemplify Colombo’s proactive stance. The reform momentum persists as the government kickstarts the privatization of key state-owned assets, including SriLankan Airlines and Sri Lanka Telecom.
Evidencing this positive turn, the rupee and the national stock market have emerged as global leaders in response to recent macroeconomic shifts, encapsulating a remarkable transformation on multiple fronts.With resilience in the face of escalating odds, Sri Lanka has steered its economy towards revival. As inflation recedes and interest rates follow suit, the resurgence of tourism breathes fresh life into the nation’s economic pulse.
The government’s unwavering commitment to reform sets a promising trajectory. Beyond the horizon, a potential reduction in benchmark interest rates could fuel the ongoing recovery, while strategic investment in tourism and logistics promises to fortify foreign exchange reserves. Amid historic hurdles, the stage is set for Sri Lanka to orchestrate a symphony of enduring prosperity with the support of global allies and astute policymaking.
Colombo (LNW): The approval granted for the importation of eggs has been extended by a further period of three months, and the importation of eggs, therefore, will continue uninterrupted, Chairman of the Sri Lanka State Trading (General) Corporation Asiri Walisundara said.
The importation of one million eggs per day contributed to the controlling of the egg shortage in the market, he added.
Colombo (LNW): The progress of 6 large-scale renewable energy projects was reviewed with the developers and the officials of Ceylon Electricity Board (CEB), Sri Lanka Sustainable Energy Authority (SLSEA) and Power & Energy Ministry on Friday (Aug. 26).
These projects aim to achieve the government’s policy of 70% renewable energy targets by 2030, Minister Kanchana Wijesekera says.
Issues related to approvals from the government, land acquisition, construction of transmission lines, grid concurrence, power purchasing agreements, financing, and implementation timelines of the projects were thus taken up for discussion.
Projects that were reviewed with the developers were:
1) 500 MW Wind project in Mannar & Pooneryn by Adani Green Energy – This project is planned to be completed by January 2025 with the construction of a 400Kv transmission line & necessary approvals and power purchasing agreements by end of september 2023.
2) 700+ MW Ground Mount Solar with battery storage in Poonakary – 134MW will be directly connected and operate with battery storage. To commence work in March 2024 with necessary approvals for transmission lines.
3) 150 MW Ground Mount Solar in Hambantota by a consortium of local developers – This will be built with transmission lines to be completed by December 2024. It can go up-to 300 MW with investment.
4) 100 MW Ground Mount Solar in Siyambalanduwa with Battery storage by the Consortium of Lakdhanavi Limited, Wind Force PLC and Blue Circle Pte. Ltd. to be completed by the end of 2025.
5) 100 MW Ground Mount Solar in Batticaloa by Solar Forge – This project is planned to be completed by 2025 with necessary construction of transmission line and approvals by October 2023.
6) 130 MW Ground Mount Solar in Sampur by the Joint Venture of CEB & NTPC of India – This project is expected to be completed in 2 stages with construction of 2 transmission lines and the first phase of 50 MW by 2025 funded by AIIB, NTPC and CEB.
Colombo (LNW): The Asian Development Bank (ADB) reaffirmed its unwavering commitment to bolster the recovery of stressed small and medium enterprises (SMEs) and praised Sri Lanka’s steadfast dedication to rebound from the economic crisis.
The assurance was extended by ADB Country Director Takafumi Kadano yesterday during a meeting with State Minister of Finance Shehan Semasinghe held at the Finance Ministry.
Kadano shared insights into forthcoming projects in Sri Lanka, particularly in the power sector. Recognising Sri Lanka’s commendable efforts in steering clear of a crisis, he highlighted the potential for progress that often emerges from adversity and expressed optimism about the ability to transition towards a sustainable, long-term economic trajectory.
With an unequivocal commitment to sustained support, Kadano underscored that the ADB’s assistance would remain resolute, especially in alignment with the initiatives of the International Monetary Fund.
He reiterated the ADB’s keen interest in conducting an in-depth study of Sri Lanka’s SME sector to identify and implement effective support mechanisms.
State Minister Shehan Semasinghe also appreciated ADB for continued assistance throughout the crisis and subsequent recovery phases.
Shedding light on the segment most severely impacted by the crisis, he emphasised the vital role of SMEs in the economic fabric, urging their swift revitalisation. He highlighted the Government’s efforts in providing concessions to revive these enterprises and underlined the pressing need for additional support.
Sri Lanka is seeking the Asian Development Bank (ADB) aid to200 million he said adding that finnac ministry is discussing with ADB for a credit guarantee scheme worth $200 million, to support SMEs.
“This scheme will be established and implemented by the Ministry of Finance. The discussions are progressing well,” he disclosed.
He added that the government is very concerned about the SME sector and is keen to get them out of the rut. “The SME sector is hit the hardest by the pandemic, and the ensuing economic crisis.
We are looking at many avenues to emerge from the bad situation.” He also said the government is expecting the banks to pass on the benefits to the sector by lowering inflation rates and reducing interest rates.
“We do understand the banks’ constraints but with improving economic indicators, we expect the banking sector to help out the small and medium entrepreneurs.”
Colombo (LNW): The National Water Supply and Drainage Board (NWSDB) of Sri Lanka is set to launch a project that purifies seawater for the daily use of people in the Jaffna district.
The plant will provide safe drinking water to 300,000 people belonging to 60,000 families of the city of Jaffna and its surrounding urban and rural areas.
NWSDB adds that initial work of the project has begun, and will be completed early next year.
A cabinet paper has also been submitted for the calling for tenders related to pipelines for the project.
As soon as it is approved, tenders will be called to design, build and operate the first-ever desalination plant through sea water reverse osmosis in Jaffn
With a capacity of 24,000 m3, the facility, partly financed by the Asian Development Bank (ADB), will be designed-built over a period of two and half years,
The project is aimed to channel approximately 27,000 cubic meters per day (m3/day) of raw water approximately 50 kilometers (km) from Iranaimadu irrigation tank in Jaffna peninsula to treat and distribute drinking water to the water scarce Jaffna and nearby towns.
The farmers benefiting from the tank have raised concerns on the water adequacy in the tank to share with drinking water needs in the Jaffna peninsula.
However, considering the concerns of farmers, the water abstraction rate reduced from 50,000 to 27,000 cubic meters per day.
Nevertheless, some farmer organizations continued their protest against abstraction of water from Iranaimadu tank for the drinking water project. Severe drought experienced in Kilinochchi resulted in extremely low water level in the Iranaimadu tank, aggravating farmers concerns on water sharing.
Considering the urgent need of water supply facilities to Jaffna Peninsula and its suburbs,a mutual agreement has been reached with ADB to carry out a Rapid
Assessment on the feasibility of alternative water sources for JKWSSP mainly focusing on desalination of sea water.As a result of the rapid assessment study and their recommendations with regard to desalination, option will be suitable and changed the water source to surface water to sea water.
This project is developed to construct a seawater reverse osmosis (SWRO) plant to produce about 24, 000 cubic meters (m3) of fresh water per day.
Considering the proposed restructuring, the project meets the eligibility criteria for additional financing. 120 Mn USD approved by Asian Development Bank for the development of water supply infrastructure facilities.
