In a significant move, the Cabinet of Ministers in Sri Lanka has given the go-ahead to a proposal aimed at reducing the maximum retail price of 60 medicines, effective from June 15, 2023. Additionally, the Cabinet has mandated a regular review of medicine prices every three months.

The Ministry of Health had previously approved an increase of up to 97% in the maximum retail price of medicines due to the depreciation of the Sri Lankan Rupee against the US dollar. However, with the recent substantial appreciation of the Sri Lankan rupee against the US dollar, Minister of Health Keheliya Rambukwella announced during a Cabinet press conference held on June 6 that his proposal to reduce medicine prices was approved.

Minister Rambukwella emphasized that the preparation of the necessary gazette notification pertaining to the price reduction is currently underway. As a result, the maximum retail price of 60 medicines will witness a reduction of 16% from June 15 onwards.

This move by the Cabinet is expected to alleviate the financial burden on the public and make essential medicines more affordable. The reduction in medicine prices is a proactive step towards ensuring accessible healthcare for all citizens.

Regular reviews of medicine prices every three months will enable the government to closely monitor fluctuations in the currency exchange rate and take appropriate measures to adjust prices accordingly. Such periodic assessments will help maintain a fair and balanced pricing system for pharmaceuticals, benefiting both consumers and healthcare providers.

By: Staff Writer

Colombo (LNW): Since the commencement of negotiations for the IMF-EFF arrangement in early 2022, Sri Lanka has completed nine prior actions by March 2023 and has formulated a mechanism for meeting the structural benchmarks.

The completion of these prior actions was instrumental in paving the way for broader reforms to be implemented in the next four years under the EFF.

The prior actions that have been already completed by Sri Lanka include, obtaining Cabinet approval for revenue measures to support fiscal consolidation during 2023 in line with programme parameters.

The there obligations were the , obtaining Parliamentary approval for a revised 2022 budget, submission of the 2023 Appropriation Bill to the Parliament, obtaining Cabinet approval to automate monthly retail fuel price adjustment,to automate semi-annual cost-recovery based electricity price adjustment, Cabinet approval of the new Central Bank Ac.

Cabinet approval for the amendments to the Banking Act, strengthening key elements of the Central Bank’s crisis management powers hiring an independent firm to conduct banking sector diagnostic exercise, and increasing policy interest rates by 100 basis points to ensure forward looking real policy interest rates are on a firm upward path.

In addition to the above, three important upfront measures were also implemented which include Parliamentary approval of the 2023 budget that was in line with programme parameters, Parliamentary approval of necessary legislative revisions to implement the 2023 revenue measures, and updating the Emergency Liquidity Assistance framework for banks.

Further, Sri Lanka is required to implement several structural benchmarks related to fiscal matters, State Owned Enterprises (SOEs), social safety net reforms,and monetary and exchange rate policies and reforms related to fiscal sector and governance in the period ahead.

The programme is expected to trigger additional financing assistance with budget support from the World Bank and the Asian Development Bank of US dollars 3.75 billion, of which US dollars 900 million is expected in 2023.

It is also expected that with the recovery in the economy and buildup of buffers,Sri Lanka would be able to access international markets to raise funds in terms of sovereign bond issues in 2027.

These resources, together with external public debt service relief, will close the external financing gap and allow Sri Lanka to rebuild its gross international reserves.

Gampola, a town in Sri Lanka, experienced a minor tremor measuring 2.0 on the Richter scale, as confirmed by the Geological Survey & Mines Bureau (GSMB). The bureau revealed that the seismic event occurred at approximately 10:49 p.m. on Monday, June 5, with its epicenter located in Pupuressa.

Seismic meters installed in strategic locations, namely Mahakanadarawa, Hakmana, Pallekelle, and Buddhangala, diligently recorded the occurrence of the earthquake. These instruments serve as crucial monitoring tools, enabling the GSMB to collect accurate data on seismic activities in the region.

While a magnitude 2.0 tremor is considered minor and may not cause significant damage or pose immediate risks to residents, it serves as a reminder of the ongoing seismic activity in the area. Earthquakes of this scale are often imperceptible to the general population but are routinely detected by specialized equipment.

The GSMB, responsible for monitoring geological and seismic activities in Sri Lanka, plays a vital role in assessing and reporting such incidents. By closely monitoring seismic events, the bureau can provide valuable information to relevant authorities and help ensure the safety and preparedness of communities.

In light of this minor tremor, the GSMB continues to monitor the situation closely. It emphasizes the importance of remaining vigilant and adhering to proper safety protocols during seismic events. While minor tremors are not unusual in geologically active regions, it is crucial for residents to stay informed and follow any guidelines issued by local authorities.

1. President Ranil Wickremesinghe says SL’s next country assessment on anti-money laundering and countering the financing of terrorism will commence soon: asserts the assessment holds immense significance as it “directly impacts the country’s ease of doing business rating and its ability to attract foreign investments.”
2. CPC records a profit of Rs. 29.7 billion in 1Q23: Its operating loss in 2022 was Rs. 6.2 billion, compared to the loss of Rs. 41.3 billion in 2021: CEB records a loss of Rs. 34.4 billion in 1Q23 as the cost-reflective pricing mechanism was implemented only in mid-February ’23: GOSL decides to restructure CPC’s balance sheet by transferring its outstanding balance of the govt-guaranteed foreign currency denominated debt stock to the central government debt stock.
3. President Ranil Wickremesinghe hands over the letters of appointments to several new High Court Judges: The District Judges T.J. Prabhakaran, P.K. Parana Gamage, Assistant Secretary General of Parliament Tikiri K. Jayathilaka and Senior State Counsel K.D.Y.M. Nayani Nirmala Kasthuriratne appointed as High Court Judges.
4. India’s Union Minister for Port, Shipping, Water Ways Sarbananda Sonowal flags off India’s first cruise ship “Cordelia Empress” to Sri Lanka from Chennai Port: The ship to reach the Hambantota Port on June 07, and is set to sail to Trincomalee and dock there for a day: Cordelia CEO Jurgen Bailom says the ship would carry 50,000 passengers from India to Sri Lanka in the next four months.
5. Health Minister Keheliya Rambukwella says considering the appreciation of the Sri Lankan Rupee against the US Dollar, there will be a 16% reduction in NMRA-registered drugs regulated by price controls, from June 15.
6. The Ceylon Chamber of Commerce briefs key representatives of the IMF on recent economic developments in Sri Lanka, and their impact on the country’s economic trajectory: The meeting centres around interest rates, exchange rates, foreign trade, and the general political climate: CCC has been a strong advocate for the “debt default” and the subsequent IMF bailout which resulted in the sharp depreciation of the LKR, very high interest rates, high utility prices, massive negative growth, discontinuation of forex construction contracts, etc.
7. The Environment Ministry and the UN’s Food and Agriculture Organisation sign an agreement on the ‘Green Climate Fund Readiness Initiative’: The proposal aims to enhance the technical capacity of the Ministry and its partners, including the private sector, for the implementation of necessary measures to address climate challenges: The Global Climate Risk Index reveals SL is one of the most vulnerable countries to climate change, consistently ranking among the top ten nations at risk of extreme weather events.
8. The Korean Government to provide Rs. 15,600 million in assistance to SL for the implementation of two floating solar projects by supporting the programme for the development of renewable energy in the island: These solar power plants to be located at Chandrika Lake and Kiriibban Lake in the southern region, and will contribute 2MW of electricity to the National Grid.
9. Secretary General of the Joint Apparel Association Forum Sri Lanka Yohan Lawrence says with the current GSP+ regulation set to expire by the end 2023, it is imperative that SL takes measures to secure concessionary access to the European market; reminds securing GSP+ depends on SL upholding the already ratified conventions spanning human rights, labour, environment and governance; warns if SL is to lose GSP+, the combined loss for the apparel sector is estimated at US$494 million, which is 79% of the estimated trade loss.
10. Sri Lanka Cricket team head coach Chris Silverwood after the victory in the second ODI at Mahinda Rajapaksa Int’l Stadium says they want to qualify for the World Cup and win the Afghanistan ODI series: adds the team has limited opportunities and time to prepare for the World Cup qualifier tournament and experience is vital at this stage: asserts he’s “very pleased with how the team has bounced back”: stresses Angelo Mathews’ experience is very important for the side.

Severe weather conditions have wreaked havoc in various areas of the Western and Sabaragamuwa Provinces, leaving local communities grappling with the challenges posed by floods. In response to this crisis, the Sri Lanka Navy swiftly sprang into action on Sunday, mobilizing four relief teams to provide much-needed aid to the affected areas, including Bulathsinhala, Baduraliya, Lathpandura, and Kalawana.

One of the notable efforts undertaken by the Navy relief teams was the rescue and assistance of a group of school children who found themselves stranded in the flood-hit Lathpandura area of Baduraliya in the Kalutara district. These students were facing the threat of being unable to reach their examination centers for the upcoming G.C.E. Ordinary Level examination. Recognizing the urgency of the situation, the Navy promptly arranged a boat service to transport the stranded students, ensuring they would not miss this crucial academic milestone.

In addition to the successful rescue operation, the Navy relief teams have been diligently working to alleviate the hardships faced by the affected communities. The dedicated personnel have been providing essential supplies, including food, water, and medical assistance, to those who have been displaced or isolated by the floods.

In a recent revelation, the Association of Health Professionals has brought to light the disheartening fact that the automatic vaccination machine, worth a staggering Rs. 200 million, attached to the PET Scan machine at the Cancer Hospital in Maharagama, has been lying dormant for over a year. This unfortunate situation has arisen due to the unavailability of the FDG chemical and connection tubes necessary for its operation.

Upon inquiry by Ada Derana, Dr. Aruna Jayasekara, the Director of the Maharagama Cancer Hospital, acknowledged that while the automatic vaccinations using the PET Scan machine have been suspended, other essential tests are still being conducted using the equipment as usual.

The PET Scan machine, a vital tool in accurately identifying the location of cancer cells and facilitating targeted treatment for patients diagnosed with cancer in specific internal organs, was acquired by the Maharagama Cancer Hospital in 2018. This acquisition was made possible through the collaboration of Manusath Derana, which assisted in raising the necessary Rs. 200 million in funds along with contributions from the hospital and generous donors.

Subsequently, the hospital invested in an automatic vaccination machine to administer the FDG chemical during PET scans, aiming to streamline and improve the efficiency of the process.

The current predicament has caught the attention of the Government Medical Officers’ Association (GMOA), which has estimated that it will take a minimum of two weeks to restore the machine’s functionality and resume its crucial activities.

Showers or thundershowers will occur at times in Western and Sabaragamuwa provinces and in Galle and Matara districts. Fairly heavy showers above 75 mm are likely at some places in the Sabaragamuwa Province and in Galle, Matara and Kalutara districts.

Several spells of showers will occur in North-Western province.

Showers or thundershowers will occur at a few places in Uva and Central provinces and in Ampara and Batticaloa districts during the evening or night.

Strong winds about (40-45) kmph can be expected at times in Northern and North-Central provinces and in Hambantota, Puttalam and Trincomalee districts.

Addressing the National Law Conference, June (03), President Wickremesinghe said that Sri Lanka’s next country assessment on Anti-Money Laundering and Countering the Financing of Terrorism will commence soon.

The assessment, slated to commence soon, holds immense significance as it directly impacts the country’s ease of doing business rating and its ability to attract foreign investments.

In an important development, Sri Lanka has been informed about the impending country assessment on anti-money laundering and countering the financing of terrorism. This assessment holds significant weight as Sri Lanka’s compliance in these areas is crucial for enhancing the ease of doing business rating and attracting foreign investments.

As discussions unfold, it becomes apparent that addressing the identified gaps in the anti-money laundering and counter-terrorism financing framework is of utmost importance. Failure to rectify these gaps poses a potential risk of Sri Lanka once again being labelled as a country with strategic deficiencies. Such a designation could have severe adverse effects on the country’s economic development.
Recognizing the urgency, it is imperative for Sri Lanka to prioritize bridging these gaps, which will also support the governance and anti-corruption framework, ensuring the successful implementation of the International Monetary Fund (IMF) program.

During the discussions, various issues have come to light. One major concern is the bureaucratic hurdles and legal complexities faced by the citizens, resulting in frequent court visits. Participants reflect upon the past, where significant infrastructure projects were accomplished within specified timeframes, even amidst an ongoing war. However, the current administrative structure and an excess of legal professionals hinder the timely completion of projects, demanding a comprehensive review.

To tackle these challenges effectively, a recommendation is made for all stakeholders, including the bench, the bar, the government, and the parliament, to convene and compile a joint report. This collaborative effort would provide a clear roadmap for addressing the backlog and delays caused by legal proceedings. Additionally, it is emphasized that the formulation of a national policy, determined by parliament rather than the cabinet, is essential to resolve various issues and ensure broad agreement on critical subjects.
Following is the speech delivered by President Ranil Wickremesinghe –
Well, it’s been a long and fruitful discussion, but I don’t think I should keep you all too long because yesterday, I was given 15 minutes, but I nearly took twice that time. As the representative of the government, along with the three panel members, I will address the issues raised. One of the primary complaints has been the bureaucracy, laws, and the increasing frequency of court visits. Reflecting on my 17 years in government, during the first ten years, we successfully constructed seven large reservoirs in the Mahaveli scheme, as well as Samanala Wewa and Lunugam Vehera outside of it. We also built the Left Bank canals, Right Bank canals, and completed all these projects on time.

During President Jayawardena’s tenure, we established two investment promotion zones and a new capital with a parliament, along with several buildings. During President Pramadasa’s time, we developed two more investment promotion zones, including 200 garment factories. We managed to stay on schedule, with no major overruns, despite the on-going war at that time. However, the current circumstances make it challenging to achieve similar results. Therefore, we need to re-evaluate the entire administrative structure. Regarding the issue of backlog and law delays, which Justice Priyantha Gunawardane emphasized, I propose that all stakeholders, including the bench, bar, government, and parliament, come together to produce a unified report. This would facilitate parliamentary action and allow input from opposition lawyers.

We can all convene and work out the necessary steps within a short period of time. As a representative of the government, I will ensure the involvement of the Secretary and the treasury, depending on the available resources. Adequate funding is essential. Additionally, I recommend that the unofficial bar, official bar, and bench provide a report on other raised concerns. The lack of a national policy contributes to some of these problems. While most governments have neglected the formulation of national policies, our constitution places the responsibility on parliament rather than the cabinet. Therefore, we aim to implement this system and have already established a committee on national policy. Though agreement among all may not be guaranteed, striving for the broadest possible consensus on various subjects is our objective, ensuring their enactment.

Now, addressing the energy issue, we must first focus on unbundling the Ceylon Electricity Board (CEB). Unbundling was advised by the Asian Development Bank in 2003, but later, due to union influence, the government reversed the decision. The unions now insist on unbundling. Had we done it in 2004, we would have avoided the current problem.

The second issue pertains to renewable energy. We have a renewable energy authority under the 13th Amendment and it’s under the Provincial Councils and the other is hydroelectricity. As for the national grid, its definition remains incomplete, allowing for the possibility of parallel grids. Consequently, an energy regulator, specifically an electricity regulator, is necessary to balance the powers of the CEB and the Provincial Councils. We are currently exploring the appropriate regulatory framework and seeking resolutions for the raised concerns, including tariffs. Furthermore, we have initiated a committee on Digital Transformation to drive digitalization in the government. During my tenure as Minister of Industries and Technology, we discussed digitalization in customs, but even after 30 years, progress has been insufficient. The presence of numerous lawyers leads to further complications, with court stays being sought amid on-going processes. To address this problem, we are introducing a new system inspired by the Malaysian model the Lab methodology. This system involves bringing all stakeholders together to discuss and provide a report within six weeks, which the government will then implement. In the Sinhalese language, we refer to this approach as “Sanghayana” where everyone participates, discusses, and returns with recommendations. This methodology aims to resolve government-related issues and streamline procedures in collaboration with the private sector. Lastly, regarding the local firms, we will provide assistance to competitive companies to improve their competitiveness. However, non-competitive local firms cannot expect special treatment. In the past, we focused heavily on the construction sector, providing BOI proposals and tax incentives. Our economy became overly reliant on concrete-related activities. While we support the growth of our construction and real estate firms, we also encourage other companies to come if they meet our standards. A level playing field is essential for development. By looking beyond our borders and adopting a unified policy, we can overcome the challenges we face. I won’t take any more of your time as you have other sessions and a lunch break. I extend my gratitude to all of you, and let’s follow up on these matters. Finally, I want to emphasize that we are preparing for the upcoming country assessment on anti-money laundering and countering the financing of terrorism. Sri Lanka recognizes the importance of addressing the identified gaps, strengthening our governance framework, and ensuring compliance. With the support and cooperation of all stakeholders, we strive for sustainable economic development and international cooperation.
Meanwhile, Mr. Kaushalya Navaratne, President, Bar Association of Sri Lanka addressing the gathering said, “The aim of this conference is to initiate a dialogue between the legal fraternity, policymakers, bureaucrats, and the business community. Recognizing the significance of both entrepreneurship and the rule of law, it is crucial for these sectors to understand each other’s importance for the nation’s prosperity.
To ensure a fruitful discussion, it is essential to involve the political leadership, and we appreciate the dedication of President Wickremesinghe in joining us for this event. The presence of senior judicial officers, policymakers, bureaucrats, lawyers, and corporate leaders will contribute to candid and open discussions.

The focus of the conversation should be on real problems and realities, aiming to find long-lasting solutions. With this in mind, let us commence the conversation and work towards a productive outcome.”
Addressing the gathering, Mr Faiszer Mustapha PC, Chairman NLC said, “Reflecting on the past 75 years since our independence, we acknowledge the initial optimism for Sri Lanka’s growth. However, the devastating impact of war and economic mismanagement has hindered our progress and led us to our current challenges. It is now our duty to rectify past mistakes and confront these obstacles.
We must begin by addressing our debt and engaging in debt restructuring to regain control of our economy. Business as usual is no longer an option; we must forge a new path towards efficient economic growth and sustainable development. This requires a deep understanding of the roles and responsibilities of the legal fraternity, judiciary, entrepreneurs, and guardians of the rule of law.
The business community plays a crucial role in job creation, wealth generation, and innovation. Without a thriving business sector, our nation’s advancement will be compromised. It is essential for the legal fraternity and judiciary to foster trust and collaboration with the business community, while businesses must uphold the rule of law and consider their social responsibilities beyond individual targets.”
Supreme Court Justice Priyantha Jayawardena PC said, “The significance of this conference cannot be understated, particularly in light of the unprecedented economic and financial challenges our nation is currently facing. It is our collective responsibility to strive for the betterment of our country and overcome this situation.

The fact that we have gathered here today is a testament to the shared interest we all have in this conference. Throughout the event, we will be focusing on important topics such as improving the ease of doing business, enhancing contract enforcement within a favourable legal framework, and related subjects.

It is crucial to note that Sri Lanka’s current rankings by the World Bank place us at 29th in the ease of doing business index and 164th in enforcing contracts. These rankings significantly influence investment decisions, making it imperative for us to address these parameters for the economic revival of our nation.”

Mr. M. Rajaram, Partner/Chairman, K&L Gates Straits Law LLC (Singapore); “Investors perceive Sri Lanka as an increasingly attractive destination for investments, as acknowledged in discussions held in Singapore, India, the UK, and the US. However, investors seek certain assurances and a level of comfort when considering investment opportunities. When disputes arise, investors prioritize two key factors: certainty of outcome and a fast resolution.

Drawing from Singapore’s experience, specialized judges and a case management system have been established to address different types of issues, aiming to resolve cases within 15 months in most instances. Additionally, modernization efforts, such as paperless filings and electronic hearings, have been implemented in Singaporean courts.
Despite being a small nation with limited natural resources and a smaller population compared to Sri Lanka, Singapore has successfully embraced these measures. Therefore, the suggestion is made to consider modernizing Sri Lanka’s court system using artificial intelligence (AI) and implementing strict case management controls.”
President’s Counsel Dr. K Kanag-Isvaran, President’s Counsel Dr. Faiz Mustapha, Central Bank Governor Dr. Nandalal Weerasinghe, Finance Ministry Secretary Mahinda Siriwardena, President’s Senior Adviser on Economic Affairs Dr. R.H. Samaratunga, attended the conference as panelists while President’s Counsel Mr. Chandaka Jayasundere moderated the panel discussion.
Attorney General Sanjay Rajaratnam, Mr. Ronald Perera PC, Chairman, Bank of Ceylon, Chairman, Sri Lanka, Insurance Corporation Mr. Thulci Aluwihare, Deputy Managing Director, CHEC Port City Colombo(Pvt) Ltd, Mrs. Nadeeja Tambiah, President- Head of Legal and Secretarial- John Keells Holdings, Mr. Mohamed Azmeer, CEO, Amana Bank PLC, Mr. Premalal Brahmanage, Chairman, Prime Group, Mr. Nirmal Cooke, Group Director Capital Maharaja Organization, Mr. Vinod Hirdaramani, Chairman, Hirdaramani Group, Mr. Asgi Akbarally, Executive Director, Akbar Brothers Group, Mr. Dipak Das, Managing Director, Lanka IOC PLC, Mr. Imal Fonseka, Chief Executive Officer, Richardson Group, Mr. Janaka Abeysinghe, Chief Executive Officer, Sri Lanka Telecom, Mr.Thushan Meemanage, Director, Scope Cinemas (Pvt) Limited and a distinguished group of Supreme Court judges and lawyers attended this event.