The Central Bank of Sri Lanka (CBSL) has taken decisive action by issuing an Order to lower interest rates on lending products provided by all licensed commercial banks (LCBs) and licensed specialized banks (LSBs), effective from August 25th.

This directive applies to a range of lending products including pawning facilities, pre-arranged temporary overdrafts, credit card advances, and both new and existing loans denominated in Sri Lanka Rupees (LKR).

The CBSL’s Order outlines the maximum interest rates applicable to LKR-denominated lending products, emphasizing the need for reductions to ensure that lending rates align with the current monetary policy stance.

Despite previous efforts to ease monetary conditions through policies such as reducing policy interest rates and the statutory reserve ratio, some financial institutions have maintained excessively high interest rates on lending products. This situation poses challenges for individuals and businesses.

In response, the Monetary Board of the CBSL issued a directive to licensed banks. The order stipulates that pawning facilities should carry an annual interest rate of 18%, pre-arranged temporary overdrafts should carry a rate of 23%, and credit card advances should be subject to an interest rate of 28%, all beginning with the next billing cycle.

Furthermore, the CBSL has mandated that licensed banks reduce the annual nominal interest rates for all new and existing LKR-denominated lending products (excluding credit card facilities and other categories) by a minimum of 250 basis points by October 31, 2023, and an additional 100 basis points by December 31, 2023. This reduction is in comparison to the interest rates prevailing as of July 31, 2023.

However, the CBSL clarifies that if the annual nominal interest rate for any LKR-denominated lending product is already 13.5% or lower as of August 25 or any time thereafter, the mandatory reduction is not applicable.

Additionally, if the applicable annual nominal interest rate as of the effective date or any time thereafter is 13.5% or lower, licensed banks are instructed not to increase interest rates on such lending products beyond the levels maintained as of August 25.

This move by the Central Bank of Sri Lanka underscores its commitment to fostering a lending environment that aligns with the prevailing monetary policy objectives and supports the economic well-being of both individuals and businesses in the country.

1. Former CB Deputy Governor P Samarasiri says the Forex debt default declared on 12April’22 was not a default of debt by the Govt but a default of foreign currency payments by the Central Bank: warns the macro-economic catastrophe that the public confronted after the default by the Central Bank will spread across society for several decades to come: calls for the conduct of a special investigation into the circumstances of the default, including undisclosed conspiracies behind the default.
2. CEB spokesperson Engineer Nandika Pathirage says water in the CEB hydro-power reservoirs had dropped to 25% of capacity: asserts the CEB had to go for “emergency power” purchases because drinking water for Colombo is supplied from the Laxapana reservoir and priority has to be given to that.
3. Officials in the livestock sector warn that the lack of water and feed for cattle and buffaloes in the prevailing drought condition will have a severe impact on the country’s milk production.
4. SLPP rebel MP and PHU leader MP Udaya Gammanpila requests President Ranil Wickremesinghe to take steps for SL to become a member of BRICS, originally consisting of Brazil, Russia, India, China and South Africa: says the world power is shifting towards Asia and that it is time for SL to review its foreign policy in the latest context and reset it accordingly.
5. Leader of the House Susil Premajaynath says the ruling party is ready to confer with the Opposition to amend standing orders to expel MPs who commit various offences and tarnish the image of Parliament.
6. Minister of Defence of India Rajnath Singh is scheduled to visit SL from 2-3 September: expected to hold discussions with President Ranil Wickremasinghe and his Chief of Staff Sagala Ratnayaka: also expected to visit Trincomalee to inspect the fuel pipeline system to be built between the two countries.
7. President Ranil Wickremesinghe announces the “swift implementation” of a “comprehensive plan” to elevate the Arugam Bay tourist zone into a highly desirable destination for both local and international tourists, with the potential to generate substantial revenue.
8. Gampaha Magistrate Sheelani Chaturanthi Perera acquits former CID Director Shani Abeysekara and 4 others who were charged with introducing a stock of explosives and weapons including a claymore mine and T56 rifles into a outhouse at Kalagedihena in Gampaha and fabricating evidence that the stock of weapons and explosives belonged to former DIG Vaas Gunawardene & others, and thereby implicating them in a false charge.
9. Sources say SL High Commissioner in Kenya Kana Kananathan has been selected as an Observer of Zimbabwe’s 2023 Presidential and Parliamentary elections, for the 4th time.
10. Sri Lanka Tourism Development Authority introduces a programme for Kandy residents to list their properties, including residences as accommodation for the upcoming Asia Cup Cricket Tournament: under the scheme, Kandy property owners will be able to rent out their extra rooms, homes or apartments to cater to the high demand for accommodation during the Asia Cup series.

Officials from the Gampola Divisional Crime Bureau have successfully arrested an interdicted Police Constable along with an accomplice in Matale for their involvement in stealing three parcels of heroin, collectively weighing over 3 kilograms. The theft occurred after the duo illicitly entered the storeroom at the Panadura Court where Court productions are kept.

Investigations have revealed that the police constable in question had managed to gain access to the production storeroom by removing the asbestos roofing sheets on the previous Saturday (19). While descending from the roof to the storeroom, a part of the ceiling had collapsed. Nonetheless, the constable reportedly absconded with the three parcels of drugs after replacing the asbestos roofing sheet as it was.

It wasn’t until Monday (21), when court staff arrived for work and discovered the collapsed ceiling, that the officer in charge of the room notified authorities. However, suspicions of theft had not arisen at that point. It was only after the suspects were apprehended and the narcotics were discovered that court staff realized the theft had taken place.

The investigation was initiated based on information received by the Central Province Senior Deputy Inspector General (SDIG) Lalith Pathinayake, indicating that an individual posing as a sales representative in the Ovilkanda area of Matale was attempting to sell a substantial amount of drugs. In response, the Gampola Division Criminal Investigation Bureau carried out the operation, leading to the arrest of a 30-year-old man named Lakmal Bulathwatta, residing in Owilkanda. He was found with 20 grams of heroin near the children’s stadium of the Matale Municipal Council.

Further investigation into Bulathwatta revealed information about the interdicted police constable’s involvement. Subsequently, the police arrested the constable, seizing 3.75 kilograms of heroin from his residence in Ovilkanda, Matale. This stash of drugs was traced back to the theft from the Panadura Court’s warehouse.

The investigation unveiled that the constable and his accomplice had driven to Panadura and entered the court complex by scaling the wall behind it, where they conducted the theft.

The constable had been attached to the Moranthuduwa Police station since the commencement of his service. His interest in accessing the case production room during his visits to the Panadura court was noted, and he was later transferred to the Mirigama Police Station due to suspicions of drug use. He was subsequently interdicted from his duties while stationed at the Mirigama police station for the theft of money from officers’ wallets at the Mirigama Police Barracks on July 16.

Following his release on bail and subsequent court appearance, investigations revealed that the constable had planned the theft in Matale, leading to his recent arrest and the recovery of the stolen drugs.

Except for a few showers in Western and Sabaragamuwa provinces and in Galle and Matara districts, mainly fair weather will prevail over most parts of the Island.

President Ranil Wickremesinghe addressing a special Committee meeting drew parallels to the successful implementation of the Mahaweli Development Project during the 1980s, affirming a similar commitment to expediting the Eastern Development Project. He emphasized the imperative of fostering a conducive environment that reinvigorates the nation’s economy, stressing on the need to engage India’s assistance for this endeavour.

Highlighting the strategic importance of the endeavour, President Wickremesinghe underscored the comprehensive vision for Trincomalee’s transformation into a multifaceted hub encompassing energy, transportation, maritime commerce, naval operations, aviation, industry, and tourism. He underscored the collaborative role of India in realizing this strategic program.

These remarks were made during a special meeting presided over by President Wickremesinghe at the Trincomalee Air Force Base (24).

The session prominently addressed the meticulous administration of government and Mahaweli-designated land within the district. The President duly instructed officials to provide him with a comprehensive report encompassing land allocations spanning the period 2019 to 2023.

President Wickremesinghe asserted that land stands as the essential factor of the development trajectory. He highlighted the importance of vigilant management for the achievement of desired developmental objectives.

In addition, the President provided explicit guidance to cease the competitive establishment of religious sites. He advocated for a consultative approach in future undertakings concerning religious structures within the Trincomalee district. Decisions in this regard he said, should be reached in coordination with the governor, district political leaders, and relevant governmental authorities.

President Ranil Wickremesinghe further commented,

The convened meeting today was dedicated to deliberating upon the developmental initiatives within the Eastern Province, with particular emphasis on the Trincomalee district. Presently, a comprehensive plan formulated by Surbana Jurong pertains to the Trincomalee district’s development, supported by an established agreement between Sri Lanka and India. It is vital that this accord is executed.

The development strategy entails a meticulously crafted program aimed at the enhancement of the Kumana coastal stretch extending from Verugalaru to Panama. This expanse is envisioned to be harnessed for the advancement of the tourism sector. Simultaneously, a blueprint is in place for the establishment of modernized agriculture within this vicinity and this model is intended to be extended to other areas within the Eastern Province. The active involvement of both the Mahaweli Authority and the Land Department is envisaged in these pursuits.

Anticipating an evolution in Trincomalee’s fishing, agriculture, and tourism sectors, the strategic goal is to elevate Trincomalee to a prominent commercial centre. Subsequent to this, the trajectory of development is envisaged to extend to Batticaloa and Ampara.

The resolution of land-related issues, particularly concerning Mahaweli-designated land, is pivotal for the advancement of these endeavours. Pertinently, the execution of the Trincomalee Development Plan encompasses the acquisition of land in accordance with the 1985 Mahaweli scheme. However, there have been instances of land parcels within the Eastern Province being gazetted without the requisite approval of the Cabinet.

Observations have indicated an allocation of land to various religious sites. Consequently, there is a directive to halt the competitive proliferation of such establishments. It is paramount to engage in comprehensive discussions with the province’s political leaders and religious dignitaries to reach judicious decisions in this regard.

Recalling the Mahaweli Development Scheme’s implementation in 1985, certain lands bestowed by the Duke of Edinburgh have been designated as forests by the Ministry of Wildlife. While preserving the forested area at 32 per cent, it is envisaged that remaining lands should be harnessed for the country’s developmental pursuits.

In the contemporary global landscape, nations such as Singapore and Dubai have strategically harnessed extensive land resources to propel their developmental pursuits. My recent visit to Singapore highlighted their interest in procuring rice from Sri Lanka. Notably, we had imported rice from them last year, and this year they are seeking rice from us. This underscores the need to establish modernized agricultural practices within our nation, thereby leveraging agricultural products as a means to fortify our global economic presence.

The expeditious realization of our development objectives hinges on the prompt execution of the Eastern Development Plan. I hold the expectation that unwavering dedication to this cause will be demonstrated by all stakeholders, including government officials.

In attendance at this crucial discourse were distinguished individuals, including President’s Secretary, Mr Saman Ekanayake, Mr. Sagala Ratnayake – Senior Adviser to the President on National Security and Chief of Staff to the President, Senthil Thondaman- Governor of the Eastern Province, Kapila Athukorala – Member of Parliament for the Eastern Province, Air Force Commander, Vice Air Marshal Udeni Rajapaksa, as well as other esteemed public representatives of the province and various provincial government officials.

The issue regarding the pension for Piriven teachers is on the verge of resolution, according to State Minister of Piriven Education, Mr. Vijitha Beirugoda.

He emphasized the necessity of amending the Pension Act and the Piriven Education Act. The recommendations provided by the Department of Pension, Department of Attorney General, and the Department of Legal Draftsman are currently undergoing the approval process by the Cabinet Ministers.

During his participation in a press conference at the Presidential Media Centre (PMC) yesterday (24) under the theme ‘Collective Path to a stable country’ Minister Vijitha Berugoda underscored the deep-rooted connection between villages and temples. He praised Piriven education, rooted in the Maha Vihara education system, for its historical significance in nurturing learned and mature Maha Sangha, who are considered as the guardians of the nation.

There are 822 piriven spanning five main sections across 22 out of the 25 districts of the country. With more than 8,000 staff members, including 7,591 teachers, these institutions serve 40,941 novice priests and 36,990 lay students.

Despite the current economic challenges, President Ranil Wickremesinghe has played a significant role in advancing education within the nation. This has enabled the Ministry of Education to actively address issues faced by the Piriven education system.

The Piriven system collects 12% of teachers’ monthly salaries for pension, a practice not applied to other school teachers or government employees. Efforts are underway to rectify this disparity.

However, the Ministry of Public Administration has stressed the need to amend the Pension Act and the Piriven Education Act due to significant inconsistencies. Collaboratively, the Ministry of Public Administration and the Ministry of Education are in the process of submitting a joint Cabinet Paper, adhering to the recommendations from relevant departments.

Efforts for infrastructural development are also on-going across all districts, supported by Annual budget as well as from the Embassies of the Buddhist Countries and philanthropists from Sri Lanka and other Buddhist countries. Along with that a Piriven Fund has been initiated to strengthen Piriven education. The Ministry has ensured that Piriven institutions receive essential facilities similar to regular government schools and are introduced to a novel “Smart Education System”.

Moreover, the concept of the village and the temple, which may have grown distant, is being addressed through a program called “Sil Suwadai – Hela Diviyai” with the aim of reuniting these vital components. This initiative is expected to bolster the education system by preserving the tradition of novice monks.

The President and Chief Executive Officer of the National Gem and Jewellery Authority Mr. Viraj de Silva stated that they anticipate generating annual revenue of US$ 2 billion by the year 2025 through the export of gems.

The chairman highlighted that during the initial 7 months of this year, they have already amassed a revenue of US$ 312 million through gem exports. They further project that by the end of this year, the earnings will reach US$ 500 million.

He also focussed attention to the implementation of a programme in accordance with President Ranil Wickremesinghe’s directives, aimed at curbing the illegal export of gems. This illegal export has posed a significant challenge to achieving the US$ 2 billion target.

Consequently, Mr. Viraj de Silva indicated that necessary measures will be promptly taken to facilitate direct gem purchases by foreign buyers through auctions within the country.

These insights were shared by Mr. Viraj De Silva, the Chairman of the National Gem and Jewellery Authority, during his participation in the 101 Katha’ programme produced by the Presidential Media Division.

Expressing his views further Mr de Silva said;

The Gem and Jewellery Authority Act governs a range of regulatory tasks, spanning from authorizing mining permits to overseeing the export of gemstones. Our regulatory responsibilities encompass processes such as auctions, sales and international shipments. All of these endeavours are geared towards benefiting the nation. Furthermore, we undertake both local and international promotional initiatives, with a strong emphasis on maximizing foreign exchange inflow into the country.

With six regional offices scattered across the nation, the Gem and Jewellery  Authority actively monitors activities through these branches. Notably, gems discovered within mines cannot be sold arbitrarily; rather, they must be presented at public auctions in accordance with the nation’s legal stipulations. This practice ensures transparency and adherence to the law.

From the proceeds of gemstone sales, the government receives a share amounting to 2.5%. Recent events have showcased a substantial growth in mining activities, resulting in the sale of a gem worth a remarkable Rs. 400 million. This upsurge in mining efforts has contributed to a notable increase in the revenue generated from gem sales.

Stringent conditions are placed on the operation of gem mines. Any engagement in illegal mining activities can lead to the revocation of licenses. Furthermore, the exportation of gemstones is subject to specific protocols. Following the discovery of a gemstone, it must undergo a process of polishing and subsequent auctioning under the auspices of the Gem and Jewellery Authority.

Currently, an investigation is underway to identify instances where activities are being conducted without the approval of the Gem and Jewellery  Authority. President Ranil Wickremesinghe has also issued directives to delve into this matter, reflecting the seriousness with which these issues are being addressed.

Between January and July of this year, the export of gems has generated a substantial income of US$ 312 million. However, there exists untapped potential for even greater financial gains.

In contrast to other sectors, the Gem and Jewellery  Authority has achieved an impressive export growth rate of 34%. Notably, this growth rate surpasses that of the tea and garment industries, as evidenced by reports from the Central Bank.

Gems discovered in this manner are the collective property of the entire nation. It is imperative that the country receives their rightful value. This could prove invaluable in alleviating the current economic challenges.

The export of gems has the potential to yield an average annual income of US$ 2 billion. Sri Lanka should aspire to become a prominent hub for gem trade on the global stage. Our on-going efforts reflect this ambition, with the projected income from the gem industry expected to reach US$ 500 million by year’s end.

Expanding the number of exporters engaged in these activities is a crucial endeavour. Presently, everyday citizens participate in this industry. We have initiated a program aimed at expanding the gem export process, inviting those interested in the field to join us in this endeavour. Our primary objective is to identify buyers and cultivate new markets.

Furthermore, proactive measures have been implemented to prevent irregularities within the Gem and Jewellery Authority. To address the potential for financial improprieties arising from long-term officer tenure, a formal transfer policy has been introduced. Additionally, the integration of accounting software has effectively eliminated any room for financial misconduct.

It is also within our institution’s responsibility to validate the quality of gold items owned by Sri Lankan citizens. Thus, individuals have the option to visit our office and assess the quality of their gold possessions. The certification bestowed by the Gem and Jewellery Authority significantly enhances the value of one’s gold items.

By: Staff Writer

Colombo (LNW): A Dutch cultural delegation is scheduled to visit Sri Lanka from August 27 – 31 to sign the legal document transferring the ownership of the cultural artifacts that will be returned to the island nation later this year.

The delegation will be led by Gunay Uslu, the State Secretary for Cultural and Media in the Netherlands.

The official delegation will consist of Barbera Wolfensberger, Director General Culture and Media in the Netherlands; Lilian Gonçalves-Ho Kang You, Chairperson of Dutch Colonial Collections Committee; and Dr. Alicia Schrikker, a Member of the Committee.

The objects planned to be returned include the famous Lewke’s canon, two Gold kastanes (ceremonial swords), a Sinhalese knife, a Silver kastane and two guns.

(A 1765 cannon looted from Sri Lanka displayed at the Rijksmuseum in Amsterdam, Netherlands)

The Embassy of the Kingdom of the Netherlands in Colombo said the visiting State Secretary is expected to meet with the senior officials of the Sri Lankan government to mark this historic moment.

The legal transfer of ownership will be signed at the Ministry of Buddhasasana, Religious & Cultural Affairs of Sri Lanka on August 28 (Monday). The delegation will visit a few places with religious and Dutch historic value in Sri Lanka.

With regard to the return of cultural artifacts, the embassy said the Netherlands, while acknowledging both the tangible and intangible heritage of Dutch colonial times in Sri Lanka, is critically looking at its own role in history.

In 2021 the Dutch government approved the policy for the return of cultural heritage objects that are in the possession of the Dutch State. The indigenous populations of colonial territories were served an injustice through the involuntary loss of objects that formed part of their cultural heritage, says the Dutch government.

Therefore Dutch government is keen to help rectify this historic injustice by returning cultural heritage objects to their country of origin and by strengthening international cooperation in this area, the embassy said further.

In December 2022, the Dutch government appointed an independent commission, the Advisory Committee on the Return of Cultural Objects from Colonial Context, chaired by Lilian Gonçalves-Ho Kang You, to assess and facilitate the return of colonial objects to their respective countries of origin.

At the request of Sri Lanka, this committee decided in July this year to advise to return 6 objects of cultural significance that were wrongfully brought to the Netherlands during the colonial period.

In 2021, researchers from both countries studied the provenance (background) of these objects extensively. In 1765, these items were taken as loot by the Dutch from the Kandyan Kingdom during the siege of the Palace.

The embassy said the people of the Netherlands feel a moral obligation to return looted or otherwise wrongfully acquired objects to their rightful owners.

“Righting the wrongs of the past is needed to heal the historic wounds. The return process is expected to form the basis for further cooperation between the two countries and the cultural institutions concerned.

The cooperation will mainly be focused on the exchange of technical expertise, knowledge sharing and education.”