Kandy (LNW): Day Two of the “Study in Malaysia” Education Fair hosted by EDUCATION MALAYSIA GLOBAL SERVICES under the Ministry of Education in Malaysia was held at the Queens Hotel Kandy, Sri Lanka today (20).
EDUCATION MALAYSIA GLOBAL SERVICES is an organisation that takes Malaysian education to the world under the Malaysian Ministry of Education and currently 09 Malaysian higher education institutions have come to Sri Lanka. Their main objective is to spread Malaysian education in Sri Lanka and provide higher education for Sri Lankan students in Malaysia.
Sponsored by: Mr. Mueen Masakeen, owner of MWAY STUDY ABROAD
The Spain team is ahead of England by 1.0 at the end of the first half of the final match of the FIFA Women’s World Cup, our correspondent said.
Spain is currently winning the hearts of the spectators, demonstrating a more ‘free-flowing’ and attacking style of play than the England team, who has been on a very defensive approach since the beginning of the game.
Colombo (LNW): ‘Wayama’, a biography remembering the second year anniversary of the demise of former Minister Mangala Samaraweera written by renowned writer Sujith Akkarawatta will be launched on August 24, 2023.
The book will be launched and distributed to the public at 3.30 pm at the Lakshman Kadiragamar Centre.
The launching event is to be addressed by Dr. Mahesh Hapugoda, Dr. R.H.S. Samaratunga, former Chairman of Lakehouse Krishantha Cooray and Akkarawatta.
Singer Niranjala Manjari will also be joining the event via a performance.
Colombo (LNW): The Department of Agriculture is expected to immediately submit a report on the cultivation of big onions in the country to the Ministry of Agriculture, in the backdrop where the b-onion cultivation has largely failed for the past seven – to – eight years.
The b-onion cultivation, which was successfully carried out in Sri Lanka for a long period of time, is now failing and a report, therefore, is expected immediately, emphasised subject Minister Mahinda Amaraweera.
The Department of Agriculture, accordingly, has been assigned to probe the matter and submit a report to the Ministry as soon as possible.
In the meantime, Ministry data pointed out that the annual requirement of b-onions in Sri Lanka is 300,000 metric tonnes, and the amount of b-onions imported during the period is 131,795 metric tonnes due to the national production being only 4,716 metric tonnes.
PMD: President Ranil Wickremesinghe highlighted that the tourism industry stands as the paramount sector capable of swiftly advancing the country’s economic objectives. The government, under his leadership, has implemented numerous pivotal measures to foster its growth.
The President emphasized the significance of substantial contributions from both the public and private sectors. He stressed that the government is diligently working to provide necessary amenities for all stakeholders involved.
Addressing the audience at the inauguration of the Hilton Yala Resort, a luxurious establishment within the Hilton Hotel Group, President Ranil Wickremesinghe underscored the urgent need for comprehensive development in the region. The Yala National Park, frequented by local and international tourists daily, was singled out as a key area for such development.
Minister of Tourism and Lands, Mr. Harin Fernando, speaking at the event, commended President Ranil Wickremesinghe’s new initiatives to bolster the tourism industry. He expressed optimism that these efforts could position tourism as a primary revenue source for the country.
President Ranil Wickremesinghe, adding his thoughts, expressed his satisfaction in inaugurating the upscale Hilton hotel in the Yala region. He noted that this move would attract energetic tourists and invigorate the tourism sector. He extended gratitude to Melwa and the Hilton Group for their contributions.
Recalling the historical significance of the area, President Ranil Wickremesinghe alluded to the ancient shrines of Situlpawwa and Akasha Chaitya that once graced the Yala region. He praised the past fertility and collaboration that defined the area, as well as its remarkable architectural marvels.
The President emphasized a resolute commitment to advancing the tourism industry, urging collective participation towards this goal. He envisioned the development of the Yala area as a unified tourist destination, incorporating nearby regions like Udawalawe. This interconnected approach, he suggested, would drive progress and further enhance the tourism experience in the region.
“Furthermore, there is a pressing need to enhance the facilities catering to tourists visiting these regions. I kindly urge both the Minister of Wildlife and Forest Conservation and the Minister of Tourism, along with their respective ministry officials, to collaborate on devising a comprehensive development plan for the Yala area. This expansion should extend to encompass locales like Galoya, Maduruoya, Somavatiya, Minneriya, and Wasgamuwa.
The industry has to be involved, and that is a prerequisite. I have been also looking at this hotel and the area, and I thought we should also promote Yala. We will introduce the greater Yala.
Why are you going to call these places Udawalawe, Kumana and all? These are all connected, and the elephant path passage from Udawalawe will take you up to Kumana. So, let’s brand this as Greater Yala and make it Greater Yala for all promotional activities.
So, why only have luxury hotels here? You can have some near, I am sure, just outside Kumana before Arugambe, we can find some land for another set. Somewhere in Udawalawe, somewhere in Lunugamwehera, where those who want to can also access the Kataragama shrines.
So, these are places. Why don’t we develop them? I am asking the Minister, together with the Minister of Wildlife and Conservation, as well as the officials of those two ministries, to come up with the Greater Yala concept. I don’t think we should stop there. If you take Galloya, Maduroya, Somavathiya, Minneriya, and Wasgamuwa, you will have a unique brand. So, just have two brands and Wilpattu, which can stand on its own. And certainly, why don’t you get into a yacht in Colombo, come to Puttlam Bay, spend a day or two at Wilpattu and get back? So, you will have some wildlife reserves, which will be different from what you can get in other places.
Additionally, an intriguing prospect lies in establishing wildlife reserves that offer visitors a fresh and unique experience, reminiscent of the offerings in countries like India and Nepal. This avenue warrants significant attention as we formulate a new strategy to elevate the tourism industry.
It is essential that we set ambitious targets for the tourism sector, with the goal of doubling the influx of tourists to our country.
Correspondingly, the revenue generated from tourism should witness a four to fivefold increase.
Reflecting on my visit to the Maldives in 1981, I recall that their tourist income amounted to $25. Interestingly, at that time, fewer tourists visited the Maldives compared to our nation. Today, the number of tourists arriving here, approximately 2.5 million, equals the visitors to the Maldives.
Presently, we charge around $200 per tourist, while the Maldives charges approximately $700. Therefore, to invigorate the tourism industry, we must not only boost the number of tourists but also consider elevating the pricing.
Upon assuming the presidency, my responsibility extended beyond liberating the country from debt burdens. I was tasked with devising innovative avenues to generate income. Unlike industries and agriculture, which require time to yield returns, the tourism sector presents an avenue for swift contributions.
Hence, our primary objective revolves around promoting tourism to generate income and fulfil the needs of our people. As the year concludes, our hotels will brim with tourists—a trend that’s already underway. Looking ahead to the following year, we must not only fill our rooms with tourists but also double the resultant income.
Tourist accommodations across the nation are experiencing high occupancy rates in September, buoyed by the historic Dalada Perehara and the Asian Cup cricket tournament in Kandy. The upcoming Christmas season is anticipated to draw several internationally renowned artists and musicians, including the distinguished Western musician Andrey Mucher, slated to grace our shores in January.
The country hosts a myriad of events, such as the Galle Literary Festival, strategically designed to attract more visitors and generate vital revenue for the nation. Simultaneously, this endeavour should serve as a means of both income and employment, necessitating comprehensive training for the youth. In certain instances, this avenue has evolved into a gateway to international employment, highlighting the importance of collective engagement in shaping both individual futures and broader initiatives.
Numerous innovative proposals have been introduced to expedite the progress of our tourism sector. Notably, the government is working to extend support for individuals willing to allocate two rooms in their homes for tourists, providing excellent guest services while commanding rates upwards of a hundred dollars.
The imperative of achieving our tourism industry’s objectives is paramount. We aim to harness resources to swiftly generate income and employment prospects. In this pursuit, I appeal for the unwavering support of all individuals.”
Harin Fernando Minister of Tourism and Lands
“Under the guidance of the President, we have executed a range of initiatives aimed at boosting tourism. The outcomes are evident, with an increased inflow of tourists, particularly following the President’s visit to India. Notably, India constitutes the largest source of visitors to our country, followed by China. Air travel to Sri Lanka has surged, with airlines like Qatar Airways now operating up to six daily flights.
Sri Lanka has become an attractive destination for airlines, evidenced by the operation of flights by Turkish Airlines and Singapore Airlines seven days a week. Akira Airlines from Israel plans to launch direct flights to Sri Lanka twice a week, beginning October 31. Moreover, more flight additions are on the horizon. Our domestic airlines also contribute significantly, with around 80 flights to India weekly.
I extend my gratitude to all who have united to confront these challenges. It’s especially heartening to learn that the Hilton Hotel Group intends to inaugurate luxurious new hotels in Nuwara Eliya and Negombo. These endeavours are poised to make substantial contributions to our nation’s tourism industry.
The President’s novel approach to tourism promotion is a departure from past practices and has the potential to align with current industry goals. Statistics reveal that 31% of our tourists are repeat visitors. Our nation needn’t be confined to a particular tourist hotspot; instead, our identity should centre on warmth and hospitality. Foreign investors are increasingly drawn to Sri Lanka due to its welcoming atmosphere. It is crucial to sustain this warmth and hospitality to ensure the country’s continued allure.
I am confident that under the President’s visionary program, the tourism sector in our nation will experience resounding success, positioning it as the primary revenue generator.”
In attendance at this significant event were Professor Maithri Wickramasinghe, American Ambassador to Sri Lanka Mrs. Julie Chung, Secretary of the Ministry of Tourism and Lands H.M.B.P. Herath, Chairman of the Tourism Promotion Bureau Chalaka Gajabahu, Chairman of Sri Lanka Tourism and Hotel Management Institute Mr. Shirantha Peiris, as well as other distinguished personalities.
Meanwhile, President Ranil Wickremesinghe embarked on an inspection tour of the Yala National Park. During the visit, he highlighted the option of purchasing park tickets online for both local and foreign visitors. Acknowledging the arid climate, the President also observed efforts to rejuvenate dried-up water ponds within the park. Accompanying him were Minister Harin Fernando and American Ambassador to Sri Lanka Mrs. Julie Chung.
Also present to grace the occasion were Jamie Mead, Senior Operations Director (South East Asia) of the Hilton Hotels Group, Josh Roberts, Senior Operations Director (Asia & Australasia), Sri Lanka Hilton Hotels Group Regional General Manager Manesh Fernando, Hilton Yala Resort General Manager Gitanjali Chakravarthy, Mr. Muruga Pillai, Director of Melwa Hotels & Resorts Private Limited, and several other esteemed officials.
Colombo (LNW): About 120 specialist doctors who have left the country have been blacklisted, setting the event yet another example to the growing brain drain crisis in Sri Lanka.
These medical specialists have left Sri Lanka and reportedly have not returned to work.
Meanwhile, the Health Ministry said 363 doctors had left for overseas training and returned to the island during the time period from January 09, 2022 to August 18, 2023.
The blacklisted group is believed to be of specialist doctors who had earlier returned to the island upon the completion of their foreign training.
Earlier, it was reported that six out of the only 11 paediatric cardiologists available in Sri Lanka had migrated, and 12 out of the only 29 anesthesiologists had done the same.
In a statement the Health Ministry emphasised that those blacklisted can return to Sri Lanka, but will have to submit an appeal to the Public Service Commission to resume local practice.
Colombo (LNW): India’s ‘FlySpiceJet’ aviation service is resuming operations between Madurai and Colombo from today (20), with six weekly flights, the airline announced.
The airline will operate flights every Monday, Tuesday, Thursday, Friday, Saturday and Sunday, from Madurai to Colombo and from Colombo to Madurai.
The implication of debt on human rights is also of significant concern. Many countries in the world are either already in a debt crisis or approaching it. This is not a new phenomenon. Ability of many countries to service debt and meet the increasing demand for health services was made worse during the Covid pandemic[i]. According to reports, some governments chose to borrow more funds to support at-risk groups and build health infrastructure to respond to the pandemic. During this period, many countries faced this tough choice.
Due to the pandemic, all over the world tax revenues declined and debt repayments increased while demand for expenditure rose. This had a negative impact on the provision of health services everywhere. In particular, the focus on Covid-19 has often been at the expense of other health concerns. Lockdown protocols also further aggravated health disparities between rural and urban areas, against a stark historical backdrop of existing health services, often failing to meet universal human rights standards of availability, accessibility, acceptability, and quality.
Obligations of state
The UN Committee on Economic, Social and Cultural Rights (CESCR)[ii] has emphasised the obligation of states to respect, fulfil, and protect the right to health of their populations. This right is guaranteed under various international and regional treaties that many states have ratified, including Article 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR). This requires states to ensure the highest attainable standards of physical and mental health. Implementation of these obligations, however, has been hindered by budgetary constraints, corruption, and a lack of political will to prioritize health, even in countries that have ratified these agreements.
To hammer home the point, let me highlight the situation in Ghana, which is undergoing a similar process of restructuring as Sri Lanka is experiencing.
Ghana as a valuable lesson against austerity
Ghana has a similar economic and political trajectory to Lanka. It has been bailed out a number of times by the IMF, without tackling its structural issues of wastage of government revenue, corruption, nepotism and incompetence. It is a country whose economic model is based on products that are prey to global price fluctuations, and also suffering from a seeming inability to build an economy that meets the needs of the majority of its population, not a well-heeled minority.
Ghana is one of the world’s biggest cocoa producers and the leading gold producer in Africa. The price of goods has been on the rise at an average of 41% in the past year. Ghana overspent like Lanka during its good times. It did not save much to help when facing downturns or external shocks, which were largely caused by price cycles for its exports, oil, cocoa and gold, and also due to excessive fiscal spending during elections.
Ghana’s poly-crisis
Like Lanka, lacking fiscal discipline, and its practice of depending on foreign financing left Ghana vulnerable to investor speculation and investment selloffs. Starting in early 2022, Ghana faced a poly crisis, a complex of economic, financial and social crises. The real growth in GDP declined due to rising price pressures, mainly because of food and petroleum imports, and global supply chain bottlenecks that also contributed to rising inflation. To tame inflation, interest rates were hiked from 4.5 percentage points to 19%. The local currency, the Ghana cedi depreciated by almost 20% against the US dollar, making imports more expensive, thus escalating prices of goods and services.
Ghana technically defaulted on its domestic and international debt in February 2023. Ghana’s unsustainable debt levels forced it to seek an IMF bailout in July 2022. In mid-May 2023, the IMF granted Ghana a three-year loan package of USD 3 billion to help it restore macroeconomic stability. Its conditions were to reduce public debt from an estimated 105% to 55% of GDP by 2028. This was the 17th loan package Ghana had received from the IMF since 1957. So, every four years Ghana had to go to the IMF with the begging bowl.
Balance of payment crisis
This deficit in the balance of payments is supposed to be addressed partly by the IMF loan package. Ghana was forced to seek IMF assistance in dealing with global and local economic shocks, such as the economic slowdown in China, the global commodity price slump, irresponsible spending made during the elections in 2012 and 2016, and a protracted domestic electricity crisis. Of course, there were external economic shocks due to the COVID-19 pandemic and the Russo-Ukraine war. Yet, domestically, the regime was inefficient, and irresponsible in managing its finances. The country was burdened with excessive borrowing and led to a looming debt crisis.
Ghana’s debt comprises domestic dollar bonds, cocoa bills, pension funds and debt owed to the central bank. Ghana has reached an agreement with banks to restructure 15 billion Ghana cedi ($1.36 billion) of locally issued U.S. dollar bonds and cocoa bills[iii]. About 85 percent of eligible bondholders participated in this process. Ghana wishes to reduce its external debt interest repayments by $10.5 billion over the next three years under the IMF bailout secured in May this year.
Ghana received its first instalment of USD 600 million to be used to boost the country’s foreign currency reserves, help stabilise its currency, and support the budget. However, many believe that despite this IMF deal, Ghana is still not out of trouble. The receipt of further loan instalments depends on how Ghana performs in terms of external debt arrangements; socioeconomic reforms – austerity and necessary trade-offs; and central bank reforms.
Governance and “Winner takes all” approach
Ghana has deep structural economic problems that require a multi-stakeholder approach to resolve. Unfortunately, the entrenched pervasive system of governance of Ghana, like in Lanka, based on ‘winner takes all’ approach distorted a broad national dialogue on what has to be done and how it needs to be done. It must fix structural problems, such as over-reliance on exports of physical and human commodities, utilizing strategy of “export-led recovery.” In addition, society, particularly the privileged classes, needs to live within its means.
The country had virtually no foreign reserves, so it did not have any means to pay in USD for its imports. So, it’s no wonder many Ghanaians have been nervously waiting for the IMF bailout. As usual, to qualify for the IMF bailout, it had to undergo debt restructuring with its creditors. Ghana is going through lengthy negotiations with its creditors. Other leading agencies such as the World Bank have pledged to help the country come out of this messy situation. Investors are expected to return without fear of losing their money.
Ghana’s IMF experience
Given the country’s past experience with the IMF, it is doubtful to what extent its latest cash infusion will help solve Ghana’s long-term economic problems. As mentioned earlier, the most recent IMF assistance came in 2019. Like in Lanka, this need for regular assistance is the result of wastage and mismanagement and an inability to enlarge the economy for the benefit of all, by successive governments over many years. If there is no system change, the question remains whether the situation will get messy again. It could happen at the end of the three-year IMF bailout. Given past loans and an inability to bring in transparency, the rule of law, accountability and create an economy that benefits the majority of the population, the country could expect another bailout in the near future. This is a bleak scenario for Ghanaians who barely survive economically.
To better understand what this means for Lanka, let’s now look at what an IMF package contains for the island.
[iii] Kwadjo N June 2023, Government, banks agree to restructure GHS 15bn of cocoa bills, local dollar bonds, https://www.businessworldghana.com/government-banks-agree-to-restructure-ghs-15bn-of-cocoa-bills-local-dollar-bonds/
Kandy (LNW): Day Two of the “Study in Malaysia” consultation hosted by EDUCATION MALAYSIA GLOBAL SERVICES under the Ministry of Education in Malaysia is currently being held at the Queens Hotel Kandy.
The event is being held today (20) from 10 am to 05 pm.
The “Study in Malaysia” Education Fair is sponsored by Mr. Mueen Masakeen, owner of MWAY STUDY ABROAD.
EDUCATION MALAYSIA GLOBAL SERVICES is an organisation that takes Malaysian education to the world under the Malaysian Ministry of Education and currently 09 Malaysian higher education institutions have come to Sri Lanka. Their main objective is to spread Malaysian education in Sri Lanka and provide higher education for Sri Lankan students in Malaysia.
Colombo (LNW): Sri Lanka’s manufacturing sector has dipped in subdued performance with the textile and apparel sector struggling in lack of new orders while new businesses boosted biz activities increasing employment expectations, Central Bank announced.
The reserve money decreased compared to the previous week mainly due to the decrease in the deposits held by the commercial banks with the Central Bank.
The total outstanding market liquidity was a deficit of Rs. 62.913 bn by 18th August 2023, compared to a deficit of Rs. 145.939 bn by the end of last week.
During the six months ending June 2023, government revenue and grants increased to Rs. 1,317.1 bn compared to Rs. 919.5 bn. Total expenditure and net lending increased to Rs. .2,559.6 bn during the period from January-June 2023 compared to Rs. 1,822.1 bn recorded in the corresponding period of 2022.
The Central Bank said the dip in both production and new orders was primarily due to several factors, including a decrease in market prices.
This decline occurred despite efforts to reduce prices. Notably, manufacturers in the textile and wearing apparel sector faced challenges; as they grappled with the lack of new orders stemming from fierce competition in the global market and unfavorable demand conditions.
Alongside the decline in new orders and production, employment and stock of purchases also experienced a decrease throughout the month.
Companies were found to be primarily filling essential vacancies; leading to a reduction in overall employment numbers in July. Meanwhile, suppliers’ delivery time remained shortened compared to the previous month.
Although the immediate manufacturing outlook appears challenging, the Central Bank said the expectations for the sector over the next three months indicated a marginal improvement, taking into consideration the current economic environment.
On a contrasting note, the services sector demonstrated resilience underscoring the ongoing expansion in services activities, Central Bank claimed.
This growth was fuelled by increases in new businesses, business activities, employment, and expectations for activities. The only exception was backlogs of work, which continued to contract during the month.
Accommodation-related services, financial services, other personal services, and professional services sub-sectors saw a prominent rise in new businesses. July also witnessed consistent growth in business activities across multiple sub-sectors.
It said the surge in tourist arrivals boosted accommodation-related services, while the financial services sub-sector saw improvement due to decreasing market interest rates. Personal services and professional services sub-sectors also noted positive developments.
In a significant turn of events, the Central Bank said employment within the services sector registered an increase, marking the first upward movement in 15 months, attributed to ongoing recruitments at various companies.
While backlogs of work continued to decrease, the rate of contraction slowed down during the month.Expectations for business activities in the services sector over the next three months remained positive due to the prevailing favourable economic conditions.
