By: Staff Writer

Colombo (LNW): Sri Lanka motor traders are facing difficulties in the importation of vehicles mainly for passenger and goods transportation as the Letters of Credit issued by local banks are still not acceptable for foreign banks although the government has lifted restrictions.

State minister for finance Ranjith Siyambalapitiya said that the ministry will intervene to solve the issues of vehicle importers. 

Sri Lanka is looking at the possibility of giving a government guarantee as letters of credit issued from the island to import commercial vehicles are still not internationally recognized, He said.

Sri Lanka this month lifted a ban on the import of buses and several types of truck, imposed during a currency crisis triggered by rate cuts enforced with printed money, which eventually ended in sovereign default.

Suppliers who met the Minister this week have complained that they are facing difficulties in importing commercial vehicles as Sri Lankan Letters of Credit are still not recognized abroad.

As the currency crises worsened in 2021 and 2022 importers had to pay extra fees to foreign banks to double confirm LCs issued by Sri Lankan banks.

The ministry will explore the possibility of introducing a fresh scheme that will allow the opening of Letters of Credit (LCs) where foreign exchange can be sent from another source and not from Sri Lanka.

Foreign banks are refusing to confirm letters of credit issued by Sri Lanka state banks, and vehicle manufacturers and suppliers are also rejecting them, motor traders said.

They pointed out that it breaches Uniform Customs and Practice (UCP 600) regulations that govern international trade of banking. Most of those LCs are basically insured by a foreign bank for payment default, they disclosed.

Efforts were made to get Standard Chartered Bank and some Indian banks to confirm the Letter of Credit but they had declined.

Some supplier then tried to get the trade credit approved by a financial institution affiliated to them, but a few days later the agency had also refused, they claimed.

Under this set up the motor traders will have to look for India and China to get line of credit to bring down buses and trucks needed for passenger and goods transportation they informed the minister.

Three years after its financial crisis, Sri Lanka is set to re-open its doors for the imports of commercial vehicles, construction equipment, and electric vehicle makers, starting September 2023, Sri Lankan State Finance Minister Shehan Semasinghe said in an interview with Autocar Professional.

He  said that the Indian auto industry, especially manufacturers such as  Tata Motors, TVS Motor, Ashok Leyland, and Bajaj Group, has been deeply engaged with the Sri Lankan manufacturing sector and the country ‘completely recognises their importance’.

India has re-extended a credit line of US$ 1 billion to Sri Lanka, which has enabled the country to buy goods and services from India. 

By: Staff Writer

Colombo (LNW): A consortium has been formed to embark on a power generation project in Sri Lanka, the largest private-sector renewable energy initiative ever sanctioned by the Ceylon Electricity Board (CEB).

WindForce PLC – Sri Lanka’s leader in renewable energy, in partnership with Lakdhanavi – the leading Independent Power Producer (IPP) in Sri Lanka, and The Blue Circle – a Singapore-based investment firm focused on renewable energy, has formed the consortium that will reshape Sri Lanka’s renewable energy landscape.

This ambitious project stands as the largest private-sector renewable energy initiative ever sanctioned by the Ceylon Electricity Board (CEB), with an expected total direct investment of USD 152 million, and project completion by December 2025.

The project is also Sri Lanka’s first integrated renewable energy project, combining power generation, storage, and Transmission.

Accordingly, solidifying WindForce’s position as a driving force within Sri Lanka’s renewable energy sector, the project will be delivered as an all-inclusive package, encompassing a 100MW Solar Power Plant, a cutting-edge 12MWh Battery Energy Storage System (BESS).

Iy also included  a 2×63.5MVA, 132/33kV Grid Substation, and an extensive 27km, 132/33kV Transmission Line. This holistic approach seamlessly combines a renewable energy plant, storage system, grid substation, and transmission lines.

It showcases a harmonized approach to sustainable energy infrastructure that is unprecedented in Sri Lanka, with it being the first-ever to feature an integrated BESS.

Once complete, the landmark project will boost Sri Lanka’s clean energy capacity and stand as a revolutionary step forward in enhancing grid stability and optimizing energy distribution on the Island.

This landmark project will contribute an impressive 100 MW of clean and sustainable energy to the national grid, propelling Sri Lanka closer to its goal of meeting 70% of its electricity demand through renewable sources by 2030.

Notably, the initiative also has a positive impact on local communities, offering job opportunities during both the construction and operational phases.

During construction, the project will provide employment for approximately 500 unskilled workers, with ongoing opportunities for 50 unskilled workers post-commissioning, in the Monaragala District.

Discussing this truly groundbreaking initiative, Manjula Perera – CEO at WindForce PLC said, “ The amalgamation of cutting-edge technologies and holistic infrastructure underscores our unwavering determination to drive positive change and contribute to Sri Lanka’s sustainable future.

Its unwavering commitment to innovation, sustainable growth, and technological advancement has positioned WindForce as the largest (IPP) in the Renewable Energy sector in Sri Lanka. Founded in 2010,

WindForce embarked on a journey that has culminated in the commissioning of 30 clean power plants with a total installed capacity of 245.1 MW, 60% of which resides within Sri Lanka, with the rest distributed across Uganda, Pakistan, and Ukraine. 

This new venture will enhance WindForce’s installed capacity by nearly 30%, cementing its position as Sri Lanka’s leader in sustainable energy.

Sri Lanka’s High Commissioner to India Milinda Moragoda addressed the students of the 63^rd National Defence Course at the National Defence College (NDC) in New Delhi on 18 August 2023 on the theme ‘Evolution of India-Sri Lanka Relation: Opportunities and Challenges.’

At the outset, High Commissioner Moragoda highlighted the uniqueness of India-Sri Lanka relations drawing examples from historical ties to the present-day dynamics which involve a wide range of critical facets that define the relations between India and her closest maritime neighbour Sri Lanka.

During his interactive session, the Sri Lankan High Commissioner focused on key thematic areas of cooperation in the fields of economy, energy, culture, defence, and regional dynamics in the Indian Ocean, and explained how the India-Sri Lanka relations over the years have grown from a transactional phase to a special relationship. He also highlighted the importance of elevating the existing special relationship to a strategic level with the gradual progression of recently inked initiatives.

While thanking the Indian Government for the timely assistance rendered during the recent economic crisis, High Commissioner Moragoda appraised the audience of the current status concerning Sri Lanka’s economy and the economic stabilization efforts that are underway. He also stated that the future bilateral cooperation would heavily focus on connectivity and investment based on a reverberant economic integration road-map that was agreed upon by the leaders of the two countries.

The Sri Lankan High Commissioner also highlighted key pillars charted in the Integrated Country Strategy launched in 2021 for Sri Lanka Missions in India and its achievements.  

High Commissioner Moragoda, emphasizing the importance of the recent official visit of the Sri Lankan President to India explained that the five key connectivity-focused enablers mapped in the India-Sri Lanka Economic Partnership Vision would remain the driving force in propelling the existing relations towards a new era.

Speaking on the defence cooperation, the High Commissioner of Sri Lanka thanked the Indian government for the assistance rendered in enhancing the capacities and capabilities of the Sri Lankan armed forces over the years. He also stated that India’s security concerns in the immediate neighbourhood as well as in the Indian Ocean are Sri Lanka’s security concerns as well, and therefore, Sri Lanka pays a great deal of attention, especially to the developments that are taking place in the Indian Ocean.  

The 63^rd NDC course comprises 120 students representing the Indian military, Indian Civil Services, and friendly foreign countries, including two senior military officers from Sri Lanka.

The NDC is dedicated to the intellectual development and strategic enculturation of selected senior officers of the armed forces and civilian government services of India and those from foreign countries, for higher leadership positions and responsibilities. 

By: Isuru Parakrama

Colombo (LNW): In an event of paying insurance claims on vehicles that are under hire purchase or lease agreements, ‘no-objection’ letters will not be needed, the Insurance Regulatory Commission of Sri Lanka (IRCSL) said in a statement yesterday (22).

Accordingly, the IRCSL informed insurance companies not to collect ‘no-objection’ letters from financiers to settle insurance claims on such vehicles, stressing that “motor insurance policies specify that partial loss claims to motor vehicles under hire purchase/lease agreements be paid to policyholders.”

“We have been informed of instances where policyholders were insisted upon to furnish No-Objection Letters from their financiers to obtain insurance claims. Accordingly, the Insurance Regulatory Commission of Sri Lanka has informed insurance companies issuing motor insurance policies, not to require such policyholders to submit ‘No-Objection’ letters from financiers of vehicles, to pay insurance claims,” IRCSL said in its statement.

Colombo (LNW): The government of China yesterday (22) donated state-of-the-art ’emergency command and communication system vehicle fleet’ worth US $6.2 million to the government of Sri Lanka.

Acting Defence Minister Premitha Bandara Tennakoon officially accepted 11 military automobiles from the Chinese Ministry of National Defence, during a ceremony organised at the Army Headquarters premises yesterday.

These vehicles embedded with ultra-modern communication devices have been originally designed for military purposes.

Following the acceptance of military-to-military donation from the Defence Attaché (DA) of the Embassy of China in Sri Lanka, Senior Colonel Zhou Bo, the Acting Defence Minister Tennakoon handed over the same to Defence Secretary, General Kamal Gunaratne and the Defence Secretary symbolically presented the keys to the Army Commander Lt. Gen. Vikum Liyanage.

The Sri Lankan defence top brass along with the Chinese Embassy officials inspected the vehicles at the venue and Chief Signal Officer of the Sri Lanka Army Maj. Gen. Sugath Rathnayake and Chinese DA in Sri Lanka Senior Colonel Zhou Bo placed their signatures on an MOU between two countries during the session.

Sri Lanka Army intends to deploy these highly-developed military automobiles for both internal security and special duties in future.

Culminating the proceedings of the event, Acting Defence Minister Tennakoon presented a memento to the Chinese DA Senior Col. Bo, on behalf of the Sri Lanka Army as a gesture of goodwill and to symbolize the event.   

Additional Secretaries, Senior Officials of the Sri Lankan Defence Ministry, Senior Army Officers and Assistant Defence Attaché of the Embassy of China in Sri Lanka were also present at the event.

Colombo (LNW): Sri Lanka’s President Ranil Wickremesinghe who was on a two-day official tour in Singapore returned to the island.

The Sri Lankan delegation led by Wickremesinghe returned to Sri Lanka on a Singaporean Airlines flight and landed on the Bandaranaike International Airport (BIA) in Katunayake yesterday (22) at 11.35 pm.

PMD: President Ranil Wickremesinghe engaged in discussions with Singapore’s Prime Minister Lee Hsien Loong earlier yesterday (22). The focal point of these discussions was the reinforcement of collaborative efforts between the two nations. The leaders emphasised the importance of sustained cooperation and explored avenues for increased economic involvement.

In the aftermath of this significant meeting, a pivotal step was taken to solidify the partnership between the governments of Sri Lanka and Singapore. A Memorandum of Understanding (MoU) was successfully inked, centring around the joint venture on carbon credits. This landmark collaboration falls under Article 6 of the Paris Agreement, a pivotal framework for global environmental stewardship.

Meanwhile, the historic MoU was signed by Ms Sashikala Premawardhane, High Commissioner of Sri Lanka to Singapore and Mr. Beh Swan Gin, Permanent Secretary (Development), Ministry of Trade and Industry, in the presence of President Wickremesinghe and Prime Minister Lee.

Notable figures accompanying President Wickremesinghe included Chief-of-Staff and National Security Advisor Sagala Ratnayaka, Senior Advisor on Climate Change Ruwan Wijewardena, and Senior Advisor on Economic Stabilisation Dr. R.H. Samaratunga. This assembly of key individuals underscores the seriousness and significance of this agreement.

This strategic partnership not only showcases the commitment of both nations to environmental responsibility but also sets the stage for further collaboration in various sectors, paving the way for a prosperous and sustainable future.