The Government has decided to establish a new Department for Cinnamon Development amidst considerations, recognising the valuable contribution of the export crop to boost foreign exchange earnings.

 The proposed department is poised to offer a range of facilities and support to producers, suppliers, and exporters involved in cinnamon-related activities. The move was outlined as a 2023 Budget proposal. 

The joint proposal submitted by President Ranil Wickremesinghe and Plantation Industries Minister Dr. Ramesh Pathirana was approved by the Cabinet of Ministers on Monday.

“The decision to promote cinnamon as a commercial crop underscores its economic significance and aligns with the broader efforts to boost agricultural and export sectors,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing .

 He said the promotion of cinnamon as a robust commercial crop, will result in enhanced value chains, increased foreign exchange earnings, and a stronger position in the global market. 

Ceylon Cinnamon, known for its distinctive aroma and multiple applications, has historically played a crucial role in the country’s export earnings. Last year, 

Sri Lanka has about 35,000 hectares of cinnamon, which are mainly grown in the Galle and Matara districts, with about 60,000 farmers and 300,000 workers earning a living from the labour intensive and low-paid industry.

Ceylon Cinnamon, known for its distinctive aroma and multiple applications, has historically played a crucial role in the country’s export earnings.

Ceylon Cinnamon received the country’s first-ever Geographical Indication (GI) certification and status from the European Union (EU) Commission marking a major milestone. GI will act as a source of competitive advantage which will help to increase market differentiation, product turnover and allow for a premium price from the consumer. 

When asked for the rationale for further bloating the public sector with a new department at a time the Government finances are already stretched with a significant portion of State funds being allocated to salaries, Gunawardene acknowledged the fiscal challenges and assured that steps will be taken to minimise the impact. 

“The staff for the new department will be sourced from existing agriculture departments, mitigating any additional financial burden. 

The proposed department is poised to offer a range of facilities and support to producers, suppliers, and exporters involved in cinnamon-related activities. 

The move was outlined as a 2023 Budget proposal in the wake of the price of kilo of cinnamon has dropped to Rs 2000 from Rs 500 sometimes back.

Sri Lanka has about 35,000 hectares of cinnamon, which are mainly grown in the Galle and Matara districts, with about 60,000 farmers and 300,000 workers earning a living from the labour intensive and low-paid industry.Ceylon Cinnamon, known for its distinctive aroma and multiple applications, has historically played a crucial role in the country’s export earnings

The Diaraba Reservoir built under the Uma Oya Multi-Purpose Project inaugurated with the water release to the Diaraba reservoir from the Puhulpola Reservoir recently creating More damages than benefits for the people in the area, villagers, social activists and environmentalists complained    

Diyaraba Reservoir opened as the first phase of the Uma Oya Multipurpose Development Project and water is directed from Puhulpola Reservoir, which is the main reservoir of this project, to Diyaraba Reservoir through a tunnel.

Four reservoirs- Alikota Ara reservoir, Diaraba reservoir, Puhulpola reservoir and Handapanagala reservoir, were constructed under the mega project to divert 145 million cubic meters of water from the Uma Oya Basin, without impacting its environmental and other water needs to the Kirindi Oya Basin in the water-scarce Southern Zone.

This achievement brings an additional 120 megawatts of electricity to the national power grid and facilitates the cultivation of 15,000 acres of paddy fields in the Yala basin

The water from these reservoirs is used for irrigation of 50,000 acres of dry land and is also used to meet drinking water needs of Greater Bandarawela area.

Alikotaara and Kuda Oya reservoirs are also used to provide water for agricultural purposes. Here, the water capacity of the Hadapanagala reservoir will be increased by the Kuda Oya Reservoir.

This project was initiated in the year 2008 by the former President Mahinda Rajapaksa and the Iranian President Mahmoud Ahmadinejad with funds from the Iranian government and during the time of the former President Maithripala Sirisena, many activities of the multi-purpose project were carried out.

During the time of the former President Gotabaya Rajapaksa, the work continued and the current President Ranil Wickramasinghe, had to face many challenges to carry out the Uma Oya multi-purpose project due to the financial issues and was able to resolve those financial issues with the support of the cabinet.

Iran’s Teheran-based Farab Co. was the EPC Contractor of the Uma Oya Multipurpose Project with a total cost of US $ 514.5 million (Rs.15, 474 million), 85% of which was provided by t

According to a recent research survey of Sri Lanka Nature Group (SLNG) most of the houses in surrounding villages to reservoirs are partly or fully damaged, wells and springs have dried up and swathes of agricultural lands have been abandoned due to there being no water for cultivation.

Emeritus Prof. Jinadasa Katupotha, Department of Geography of the University of Sri Jayewardenepura, vehemently opposing the Uma Oya project urged the Government to permanently shut down the project due to its geographical and geological unsuitability apart from social, economical and ecological issues. “

This is one of the most unsuccessful projects in the Sri Lankan history. It is not viable to continue with the project even after addressing the main factor – the tunnel leakage, he added. 

 Many cautious environmentalists warned that the Uma Oya watershed cannot sustain such a large water diversion project.

In the wake of halting Japan International Cooperation Agency (JICA) funded 12 projects in Sri Lanka, the Japanese donor agency seems to have been given consent to resume or launch  mega water infrastructure projects, Water Supply and  Estate Infrastructure Ministry officials claimed. .      

Sri Lanka’s relations with Japan was tested in the last two years after former President Gotabaya Rajapaksa scrapped a JICA-funded US$ 1.5 billion light railway transit (LRT) project claiming it was too expensive and unilaterally cancelled a $500 million trilateral deal with India and Japan to develop the Eastern Container Terminal (ECT) of the Colombo Port.

Sri Lanka has recently been trying to rebuild relations with Japan who previously poured many millions of dollars in funds to the country.

Japan and Sri Lanka are in talks to recommence stalled projects funded by Japan International Corporation Agency (JICA) here, upon the imminent conclusion of the ongoing debt restructuring process.

The matter was discussed at a meeting on Wednesday (Aug. 16) chaired by Minister of Water Supply & Estate Infrastructure Jeevan Thondaman, with Japanese Ambassador Mizukoshi Hideaki and the Chief of Representative of JICA Tetsuya Yamada in attendance.

The Ministry of Water Supply and Estate Infrastructure Development said the two sides discussed about laying the groundwork for innovative, new water infrastructure projects that align with the island nation’s developmental goals.

During the meeting, a diverse array of topics were covered, reflecting the collective commitment towards advancing the island nation’s water sector, enhancing sanitation efforts, implementing crucial plantation reforms, and addressing the challenges faced by upcountry plantation communities.

Further, the ministry mentioned that the focus of the discussion also fell on the recent initiatives in the water sector.

Accordingly, Minister Thondaman has shared plans to improve the performance and efficiency of the National Water Supply & Drainage Board (NWSDB) and a new public-private partnership (PPP) initiative for a floating solar energy solution to address the energy requirement for safe water production.

The lawmaker underscored the importance of improving the performance of the Water Board, introducing new corporate and business processes, upskilling the workforce and the strategic introduction of new technologies. 

The JICA has expressed their willingness to support these initiatives through Japanese technology and processes.

The minister also shared his vision for reforms within the plantation sector, underscored by the establishment of policy formulation committees addressing the education, health, housing, employment, skills development and other needs and issues faced by plantation communities.

The two sides further discussed the existing plantation model and the urgency of a new, equitable model as a significant step towards the sector’s future transformation.

The JICA also expressed its keen interest in actively supporting initiatives that uplift the conditions of the upcountry plantation communities in Sri Lanka.

An anonymous letter has been circulated on social media to slander the Governor of Eastern Province Mr. Senthil Thondaman.

Some of the things in that letter have been pointed out as frauds committed by the Governor of the Eastern Province for two months.

It is mainly said that the Governor of Eastern Province is wasting government money by misusing government vehicles and using government employees according to his needs.

A letter signed by the Secretary of the Governor of the Eastern Province has been sent to the Chief Secretary of the Province to clarify the matter in this regard.

The letter sent by the Secretary states that the Governor of the Eastern Province does not use government vehicles improperly and uses the vehicles used by former Governors, these rumors are considered as hateful statements towards the Governor and false news is being spread to undermine public confidence in the Governor.

Eastern Province Governor’s Secretary LB Madanayake says that those who want to know true information in this regard can apply and get it under the Right to Information Act and should not be disappointed by false information.

President Ranil Wickremesinghe has been extended an invitation to participate in the upcoming Summit of the Group of 77 (G77) plus China, slated to take place in Cuba in September, as reported by foreign media sources.

The invitation was conveyed by the Cuban Ambassador to Sri Lanka, Andrés Marcelo González, who presented a letter from Cuban President Miguel Díaz-Canel to President Wickremesinghe during a diplomatic meeting. This announcement was made through Cuba’s official state news agency, ‘Prensa Latina,’ referencing diplomatic insiders.

Scheduled for September 15 and 16 in Cuba, the summit’s central theme is “Current Challenges of Development: Role of Science, Technology, and Innovation.”

Founded in 1964 as part of the Non-Aligned Movement, the G77 plus China comprises a coalition of 134 countries. This coalition seeks to advance the collective economic interests of its member states while also fostering increased collective negotiation power at the United Nations.

The group faces formidable developmental challenges, representing a significant global demographic with 80 percent of the world’s population and over two-thirds of UN member states. As the Summit approaches, the G77 plus China continues its efforts to address these challenges and enhance cooperation for the benefit of its member nations.

In a bid to foster transparent communication and information sharing, Foreign Affairs Minister Ali Sabry addressed the Colombo-based diplomatic corps on Wednesday, August 16, providing insights into the current developments in Sri Lanka.

The Ministry of Foreign Affairs highlighted that this meeting was part of a series of regular briefings organized by the Ministry to ensure that the diplomatic community remains informed about the latest developments in the country.

Minister Sabry delved into key advancements, shedding light on recent measures to stabilize the nation’s finances, efforts towards economic recovery and growth, as well as significant legislative reforms. Among these reforms were the adoption of the anti-corruption bill, proposals for a truth-seeking mechanism, and the introduction of an anti-terrorism bill.

A focal point of Minister Sabry’s briefing was the President’s statement in Parliament earlier in August concerning the 13th Amendment to the Constitution. Furthermore, he provided an overview of the strides made in ongoing reconciliation initiatives and the notable work being carried out by independent mechanisms.

Foreign Secretary Aruni Wijewardane, also addressing the gathering, outlined Sri Lanka’s active participation in multilateral platforms. She highlighted Sri Lanka’s constructive engagement in the 4th Cycle of the Universal Periodic Review (UPR), the examination of Sri Lanka’s Report under the International Covenant on Civil and Political Rights (ICCPR), and the country’s continued involvement with the United Nations. Sri Lanka’s participation in the forthcoming 54th session of the Human Rights Council and the 78th session of the United Nations General Assembly in September 2023 were also underscored.

The Foreign Secretary spotlighted two significant upcoming events: the Fifth Forum of Ministers of Environment Authorities of Asia Pacific scheduled for October 3 to 6, 2023, in Colombo, and the IORA Ministerial Meeting set for October 11, 2023. During the latter event, Sri Lanka is poised to assume the chairmanship of the organization for the 2023-2025 term.

The briefing included presentations by key domestic institutions. These included Dhara Wijayatilake, Chairperson of the Office for Reparations (OR); Mahesh Katulanda, Chairperson of the Office on Missing Persons (OMP); Deepthi Lamahewa, Director General of the Office for National Unity and Reconciliation (ONUR); Asanga Gunawansa, Director General of the Interim Secretariat of the Truth and Reconciliation Commission; and V. Krishnamoorthy, Director General of the Office for Overseas Sri Lankan Affairs (OOSLA).

Additional Secretary of the Presidential Secretariat, Chandima Wickramasinghe, provided an update on the implementation of Sri Lanka’s National Action Plan on Women, Peace, and Security.

The briefing saw the active participation of High Commissioners, Ambassadors from Diplomatic Missions, and representatives from the United Nations based in Colombo.

1. Former Education Minister and Finance Deputy Minister S B Dissanayake says Dr P B Jayasundera and Ajith Nivard Cabraal would have steered Sri Lanka through the 2022 economic crisis if they were given an year to implement their strategies without interruption: also says the Treasury Secretary and CB Governor/State Minister duo had navigated the Sri Lanka economy through many crises during the period 2006 to 2014 and grew the GDP from USD 20 bn to USD 79 bn during that period.
2. Representatives of university academics, bankers, engineers, doctors and other professionals from 47 Trade Unions assemble at the President’s Office and seek a meeting with the President’s Secretary: demand a response to their request that the recently imposed taxes be reduced and redress be granted from the negative effects of the IMF programme.
3. Chinese Foreign Minister Wang Yi meets with PM Dinesh Gunawardene at a International Forum in Kumming, China: says China will help Sri Lanka to effectively address the challenge of financial debt.
4. Environmentalists claim that organised groups have deliberately set fire to over 25,000 acres of forests around the country this year in order to encroach forest land.
5. President Ranil Wickremesinghe says education in Sri Lanka will have to change drastically to fit into the future: also says Chinese, Hindi & English must be learnt by children in order to fit into the changing world: asserts that students in schools will also have to pursue their education through mobile phones and podcasts.
6. Public Utilities Commission grants approval for the Ceylon Electricity Board to procure 100Mw of generation capacity on a short term basis for a period of 6 months from 18August’23: the Electricity Consumers’ Association claims that numerous irregularities are likely to occur in the proposed emergency power purchase process and that they intend to bring that to the notice of the relevant parties, including the PUC and the Opposition.
7. A group of SJB MPs together with MPs from other parties initiate a move to bring MPs of all parties to form a joint group to be titled the “MPs Guild for Economic Justice’: the group is expected to make an announcement next week.
8. Primary Dealer company First Capital Holdings announces that it’s profits for the quarter ending 30June’23 has jumped to a phenomenal Rs.2,810 mn, from a mere Rs.96 mn last year: a 29-times increase: Opposition leader Sajith Premadasa has repeatedly claimed that Primary Dealers had made exceptional profits as a result of the Domestic Debt Re-structuring, while the EPF and other superannuation funds were made to suffer massive losses.
9. State Minister of Finance Shehan Semasinghe asserts that receiving the 2nd tranche of the IMF’s Extended Fund Facility will portray a positive image of the economy in the future to foreign and local investors: also says the economy is on the right path and a ‘very reasonable’ stabilisation will be seen by Dec’23.
10. National Water Supply and Drainage Board urges the public to use water sparingly: also says the overall daily purified water supply capacity has decreased by 9%: the water supply to Kurunegala city to be limited from today.

Denis Chaibi, the European Union (EU) Ambassador to Sri Lanka, has emphasized the critical importance of expediting efforts towards global integration for Sri Lanka. The country’s future prospects could be at risk of falling behind regional counterparts if it loses access to the GSP Plus scheme, Chaibi warned.

In a recent address at a breakfast meeting organized by the Ceylon Motor Traders Association in Colombo, Chaibi highlighted the immediate need for Sri Lanka to capitalize on the present opportunity provided by the GSP Plus. He underscored that the scheme currently serves as a key channel for integrating Sri Lanka into crucial markets, and failing to seize this chance could lead to a significant disadvantage for the nation.

Chaibi emphasized that trade integration in South Asia remains relatively low, making it imperative for Sri Lanka to actively pursue comprehensive free trade agreements (FTAs) to bolster its position. He warned that once Sri Lanka loses GSP Plus status, the country would face restricted market access, exacerbating the absence of comprehensive trade arrangements.

Notably, recent developments indicate a positive outlook for Sri Lanka’s access to the EU markets. The European Commission has proposed a four-year extension to the existing GSP Plus scheme, extending it until December 31, 2027. This extension is attributed to ongoing negotiations between EU co-legislators regarding the new GSP Plus arrangement.

This extension is poised to secure Sri Lanka’s continued preferential access to EU markets under the existing framework until 2027, granting the country valuable time to strategize and enhance its trade integration efforts.

In a broader context, the EU had been expected to adopt a new cycle of the EU GSP regulation for the years 2024 to 2033. The new regulation was scheduled to take effect from January 1, 2024, covering the next decade and signaling an opportunity for Sri Lanka to solidify its trade relationships and economic positioning on a global scale.

In a bid to transform Sri Lanka into a thriving tourist hotspot, President Ranil Wickremesinghe has taken decisive steps to propel the nation towards attracting an impressive 5 million visitors annually. During a pivotal meeting at the Presidential Secretariat on August 17, President Wickremesinghe engaged with a committee tasked with evaluating the progress of Sri Lanka’s tourism industry enhancement program and formulating strategies to establish the country as a premier global destination.

The President’s Media Division (PMD) reported that comprehensive plans were meticulously discussed during the meeting, spanning short, medium, and long terms. These plans focus on enhancing the allure and comfort of Sri Lanka for tourists from around the world.

President Wickremesinghe’s proactive stance was evident as he inquired about ongoing plans and the involvement of the private sector in boosting the nation’s tourism sector. Officials provided detailed insights into current initiatives and emerging trends, underlining their commitment to fostering tourism growth.

Guided by recommendations from the committee dedicated to elevating Sri Lanka’s status as a top-tier tourist destination, the Ministry of Tourism, along with its affiliated bodies, is crafting a strategic roadmap up to 2025. Impressively, 95% of this comprehensive plan has already been accomplished, according to the PMD.

Further underscoring his commitment to enhancing the tourism landscape, President Wickremesinghe instructed officials to collaborate with the private sector in identifying an optimal location for a prestigious hotel school in Sri Lanka. This move is aimed at nurturing local talent and elevating the quality of hospitality services.

To expand lodging options for tourists, President Wickremesinghe issued additional directives, including a thorough investigation into currently underutilized buildings and historic bungalows. In tandem, a program will be explored to unveil hidden gems and conceive novel projects in tourist-centric regions.

In pursuit of fostering an environment conducive to investment, the President unveiled a comprehensive plan that involves the establishment of an Investment Infrastructure Corporation, accompanied by the creation of a decision-making council. Recognizing the importance of Provincial Tourism Boards across all nine provinces, President Wickremesinghe advocated for the formation of regional committees under each board.

Minister of Tourism and Lands, Mr. Harin Fernando, disclosed that a series of dynamic tourism promotion initiatives have been devised ahead of the upcoming Asian Cup. He emphasized the untapped potential in the Central and Uva provinces, particularly highlighting the pristine air quality in the Central Province. Minister Fernando proposed the development of this province as a sustainable tourism hub, aimed at alleviating congestion concerns at airports and parks, while simultaneously enhancing visitor amenities.

With President Wickremesinghe’s visionary leadership and unwavering dedication, Sri Lanka’s tourism industry is poised for a remarkable transformation, solidifying its place on the global travel map.