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Export sector awaits urgent relief over unprecedented policy reversal

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By: Staff Writer

Colombo (LNW): The all-important export sector is awaiting urgent relief from higher authorities following the Shipping Minister arbitrarily revoking a Gazette on 28 February which was introduced after two consecutive Budget proposals in 2012 and 2013.

The aim was to eliminate anti-competitive practices by service providers by distorting transport costs adding surcharges on exports and imports by unbundling freight to avoid market forces.

The Gazette which was originally issued in 2013 under the instruction of the then President as Finance Minister and Shipping Minister was untouched by previous regimes although a lobby was constantly at them by certain service providers to make undue profits by removing the Gazette.

The Gazette was suddenly rescinded by the current Minister Nimal Siripala De Silva and his Secretary Ruwan Chandra without any consultation with the relevant authorities of the Ministry of Policy and Planning or the Cabinet and the Finance Ministry who initiated the laws to make exporters more competitive and to protect the consumers in 2013.

Sources said former Shipping Minister Mahinda Samarasinghe had further strengthened the Gazette in 2017 and former Finance Minister Ravi Karunanayake way back in 2002 mooted the same as Trade Minister and reconfirmed the status in 2016 by supporting the Gazette when lobbied against it by service providers when he was Finance Minister.

The same was the stance by late Mangala Samaraweera who wanted to liberalize shipping with proper anti-competitive regulations.

It is learnt that exporters/importers consisting of all sectors apparel, rubber, tea and the shipper’s council, essential import commodities have sought relief from the higher authorities as the Shipping Ministry has given them a cold shoulder and taken the view to support the middleman who are the service providers who had introduced different surcharges and concepts such as zero freighting for nearly twenty years prior to 2012-13 Gazette.

Opposition MP Dr. Harsha De Silva brought to the attention of Parliament and Minister Nimal Sirpala de Silva the consequences if this law was removed and how exporters and consumers will suffer, during the last budget debate.

Minister promised to talk to the exporters and not to revoke the same without studying it at length. However exporters and importers say the reverse has happened suddenly and the competition law was removed silently.

The exporters have sought higher authorities’ intervention to bring the law back as a policy and planning matter in the national interest. They also say that this Gazette as a budget proposal was debated in Parliament and introduced as a bipartisan law and the very same Minister Nimal Siripala de Silva voted in favour of it in Parliament in 2013.

“Therefore it is shocking and it has baffled the trading community to say the least how policies are made and dismantled in the country which also give a complete a wrong signals to traders and international community at this juncture where buyers have accepted the Gazette ten years back as it adopts ICC guidelines of moving away from FOB to FCA in container cargo paid by a contracting party,” industry sources said.

The year 2023 is expected to be very challenging to exporters due to global and local conditions. Cumulative export earnings in the first two months have declined by 10% to $ 1.98 billion.

Last year the export sector helped to bring much needed foreign exchange with its best ever performance. Earnings from exports in 2022 surpassed $ 13 billion for the first time, recording an increase of 4.9% from the previous highest recorded in 2021.

Free rice distribution programme to 2.9 million low-income families initiated from Colombo

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Colombo (LNW): The programme to distribute free rice to 2.9 million low-income families commenced March (26) in the Colombo District under the patronage of President’s Senior Adviser on National Security and Chief of Presidential Staff Sagala Ratnayake.

The programme was carried out with a focus on the Dematagoda, Narahenpita, and Wellawatta areas, which fall under the Thimbirigasaya Divisional Secretariat Division.

As part of the programme, 995 recipients received bags of rice at the Mihidusenpura Community Hall in Dematagoda, 448 recipients received rice at the Dabare Mawatha Community Hall in Narahenpita, and 169 recipients were given rice at the Ranjan Wijeratnapura Community Hall in Wellawatta.

The distribution of free rice to low-income families for two months is part of the government’s 2022/2023 Maha season rice purchase and rice stock disposal programme, which was implemented on the instructions of President Ranil Wickremesinghe. Each family will receive 10 kg of rice per month during this period.

Initially, the rice subsidy was intended for 2 million families, but it was later expanded to 2.9 million families as per the directives of the President. The programme’s first phase will be rolled out in several districts, including Colombo, Gampaha, Kalutara, Kandy, Ratnapura, Galle, and Matara.

Addressing the programme held at the Mihidusenpura Community Hall in Dematagoda, Ratnayake explained how Sri Lanka was able to turn a corner during a difficult period with the assistance of the International Monetary Fund (IMF).

The President’s Chief of Staff emphasised that the country had faced an economic crisis due to wrong decisions made in the past, but now under the leadership of President Wickremesinghe, the country is following a more appropriate economic programme.

During the event, Ratnayake interacted with the attendees and listened to some of the issues they were facing.

The Colombo District Secretary, K.G. Wijesiri, and senior officials from the Ministry of Social Empowerment were present at the event.

Parliament to meet only on April 04 during next Parliament week: Secretary General

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By: Isuru Parakrama

Colombo (LNW): The Parliament of Sri Lanka will convene only on Tuesday, April 04, 2023 during the next Parliament week, as decided at the Committee on Parliamentary Businesses four days ago (24), revealed Parliament Secretary General Dhammika Dasanayake.

Accordingly, Parliament will convene on April 04, 2023 at 9.30 am, with time for questions for oral answers being allotted from 9.30 am to 10.30 am.

The schedule will follow the debate on the approval of an order published in the Gazette declaration No. 2306/15 under the Order under the Sri Lanka Export Development Act pertaining to amending the CESS Tax and Two Regulations under the Imports and Exports (Control) Act published in the Gazette declaration No. 2320/46 and No. 2320/47, from 10.30 am to 5 pm.

Thereafter, time will be allotted for questions at the Adjournment Time from 5 pm to 5.30 pm.

In addition, Parliament will convene from Tuesday, April 25, 2023, to Friday, April 28, 2023, in accordance with the decisions made by the Committee, Dasanayake added.

SL and US constantly consultant Chinese dealings plus Hambantota Port

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By: Staff Writer

Colombo (LNW): Sri Lanka is having regular consultations with the US with regards to the Hambantota Port as well as dealings with the Chinese, President Ranil Wickremesinghe said.

He also dismissed fears that the Hambantota Port will be used by China for military purposes.

“The Chinese don’t own the port. We own the port, but we have given all the operations of the port to China Merchants.

This is because we found that the Colombo Port Authority was unable to manage the port, and we were making big losses. There were no takers for the port, except China Merchant. Our other option was to close it,” the President said.

He said the security of the port is controlled by the Government of Sri Lanka, and the Southern Command of Sri Lanka’s Navy will remain in Hambantota.

“A number of US and Japanese warships have visited the port. The port has no basic military value. The Chinese will not use it for military purposes. They can’t. We have had regular consultations with the US in regard to this port as well as dealings with the Chinese,” the President said.

The President also said that looking at the arrangement at the ports that the Chinese are building in Africa and somewhere in the Bay of Bengal, the Hambantota port will be a crucial port as far as commercial activities are concerned.

“I think this will be one of the ports where the goods are assembled and reshipped to other destinations. I can’t see a military use for it and the Chinese haven’t the ability to have a large number of warships in the Indian Ocean any way, to counter India and the US,” he said.

The President also highlighted the rising competition between China and the Quad, which has been further aggravated by the newly formed ‘Aukus’ pact between Australia, the United States, and the United Kingdom.

President Ranil Wickremesinghe emphasized that Sri Lanka’s access to the growing Indian and African markets should not be disrupted by any big power rivalry or conflict, the President’s Media Division (PMD) said.

Additionally, he stated that Sri Lanka supports ASEAN’s vision of the Indo-Pacific region and is committed to ensuring the freedom of navigation in the Indian Ocean and the security of undersea cables, as it is essential for the future of the country

President Ranil Wickremesinghe expressed these views during an interview organized by Harvard University through Zoom technology.

Power and Energy Minister Wijesekara says seven companies submitted EOIs for new oil refinery

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By: Isuru Parakrama

Colombo (LNW): Seven companies have submitted expressions of interest (EOI) for the proposed new oil refinery in Hambantota, disclosed Power and Energy Minister Kanchana Wijesekara in a tweet today (28).

Companies had submitted EOIs by the deadline yesterday (27) pertaining to the oil refinery to be developed in Mirijjawila, he went on, adding that the technical evaluation committee & other procurement committees will evaluate EOIs and issue the request for proposals (RFP) to suitable applicants.

Veteran artist Prof. Sanath Nandasiri passes away

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By: Isuru Parakrama

Colombo (LNW): Veteran singer, songwriter and musician Prof. Sanath Nandasiri has passed away at the age of 81.

He was known for many Sinhala hits of our time, including Adara Samarum, Koho Koho, Pemathura Hangum, Game Kopi Kade, Hichchi Nage, Wikasitha Watha Kamale, Bambaru Nodutu Malak, Pini Watunu Mal, Mage Ratata Dalada Himi Saranayi and many more.

Showers, thundershowers may continue to occur in several provinces

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By: Isuru Parakrama

Colombo (LNW): Showers or thundershowers may occur at a few places in Western, Sabaragamuwa, Uva and North-western provinces and in Kandy, Nuwara-Eliya, Galle, Matara and Mannar districts during the afternoon or night, the Department of Meteorology said in a statement today (28).

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers or thunder showers will occur at a few places in the sea areas off the coast extending from Mannar to Matara via Puttalam, Colombo and Galle during night.
Winds:
Winds will be north-easterly or variable in direction and wind speed will be (20-30) kmph.
State of Sea:
The sea areas around the island will be slight.

India pledges to develop SL energy sector while gifting 500 solar cookers

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By: Staff Writer

Colombo (LNW): India and Sri Lanka joined hands to develop jointly-identified priority areas for collaboration in the energy sector.

A high-level Indian delegation called on Sri Lankan President Ranil Wickremesinghe in Colombo on Sunday and briefed him on the developments in the jointly-identified priority areas for collaboration in the energy sector.

President Wickremesinghe provided his insights on the early implementation of these initiatives, the Indian High Commission in Colombo said.

The Indian High Commission said India will offer Sri Lanka 500 solar-powered indoor cooking systems.

During his recent visit to Sri Lanka, Chairman Indian Oil Corporation Limited (IOC) Shrikant Madhav Vaidya donated 500 indoor solar cooking systems called ‘Surya Nutan’ to the Government of Sri Lanka through Lanka IOC.

One such cooking system was physically presented to and unveiled by President Ranil Wickremesinghe who was highly appreciative of the unique innovation and noble initiative.

Surya Nutan is an indigenous indoor solar cooking system designed, developed and patented by IOC’s Research &Development Centre. Surya Nutan is a stationary, rechargeable and always kitchen connected indoor cooking solution capable of catering cooking needs of households.

It has the capability to cook food through boiling, steaming, frying and baking and works on both solar and auxiliary energy sources simultaneously.

The product gets charged and discharged simultaneously while performing its function of indoor cooking. This low maintenance, easy and safe to use cooking system is said to have a long life.

These solar cooking systems shall shortly be delivered to the Government of Sri Lanka by Lanka IOC.

The occasion was marked by the presence of Secretary, Ministry of Petroleum and Natural Gas, India Pankaj Jain, High Commissioner of India to Sri Lanka Gopal Baglay and other dignitaries of the energy delegation from India.

The Lanka India Oil Company (LIOC), the local operator of Indian Oil Corporation (IOC), said the visiting Secretary to the ministry of power and natural gas Pankaj Jain and Chairman IOC Shrikant Madhav Vaidya had earlier visited the Trincomalee eastern Sri Lanka’s IOC terminal.

Sri Lanka and India run a joint venture storing fuel in the World War II time storage tanks in Trincomalee.

Jain had inaugurated three new LIOC retail fuel sheds in their ongoing expansion whilst addressing the chamber of commerce and attended a meeting of chief executive officers of leading Indian businesses based in Sri Lanka.

Chairman IOC Vaidya said he was delighted to have met former World Cup-winning Sri Lankan cricket captain Arjuna Ranatunga.

The top-level Indian delegation on the petroleum sector is expected to have extensive talks with their Lankan counterparts for further collaboration, LIOC said.

LIOC provided much assistance to Sri Lankan fuel consumers at the height of the country’s worst economic crisis.

Sri Lanka SMEs to enter into innovative digital marketplace

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By: Staff Writer

Colombo (LNW): Economic crisis battered Small and medium enterprises (SMEs), including women-owned small businesses are breathing sigh of relief following the opening avenues of digital market to them with the assistance of the International Finance Corporation (IFC).

The International Finance Corporation (IFC) is supporting the Commercial Bank of Ceylon (CBC) to launch a digital marketplace in Sri Lanka, helping business owners connect with more customers locally and abroad.

Named Commercial Bank LEAP, this one-of-its-kind initiative, which is supported under the Women in Work partnership between IFC and the government of Australia, will open new market opportunities and build business connections for all SMEs including women-owned SMEs corporate and businesses.

It will be creating an international marketplace to buy and sell products and raw materials. The platform will also assist businesses to digitize their core banking activities, provide business intelligence and will feature multiple sales channels.

It will also provide access to CBC’s banking services including loan products, non-financial services and insurance.

“Commercial Bank is to join hands with IFC to launch this pioneering digital marketplace ‘Commercial Bank Leap’. Building digital experiences around customers’ journeys and it is an ideal fit for the Bank, considering our committed focus on digitizing the banking landscape in Sri Lanka.

We believe this will address the need gaps of enterprises including women led businesses and allow them to reach cross boarder levels in the global marketplace,” said Sanath Manatunge, Managing Director/Chief Executive Officer of CBC.

Of all SMEs in Sri Lanka, a quarter of which are owned or managed by women. Overall, SMEs account for around 45 percent of Sri Lanka’s formal employment.

But the research shows lack of access to finance and business know-how holds many businesses in Sri Lanka, specifically women-owned, back from expending their businesses beyond their informal micro-scale enterprises.

“Sri Lanka’s macroeconomic crisis has had a negative and disproportionate impact on small businesses, particularly those owned by women, in their access to a wide range of customers and export revenue,” said Joon Young Park, IFC’s Regional Portfolio Manager, Financial Institutions Group for South Asia.

“This is a timely and innovative initiative, offering a real avenue for small business owners to connect on a digital platform, access new financial products and grow their businesses, to help them not only survive but thrive, which will also positively impact the growth of Sri Lanka,”he added.

Widespread differences between men and women in digital and financial inclusion continue to hold back women entrepreneurs.

In 2020, an IFC study assessing over 400 SMEs highlighted the significant gaps in Sri Lanka in terms of the uptake of digital business channels, with only a quarter of women-owned businesses trying a new digital channel, compared to one-third of male-owned.

Under this initiative, Globalinker has been selected as the platform provider for the newly built digital marketplace, with the platform allowing SMEs to not only connect with others in the country but also abroad.

In IFC’s over 50 years of operations in Sri Lanka, CBC has been a longstanding partner, dating back to 2003. IFC has supported CBC through multiple investments as well as through advisory support and currently holds a 7 percent equity stake.

CBC is also one of the three banks that received support from IFC through a $400 million cross-currency swap facility to help facilitate the imports of essential goods such as food, medicines and fertilizers.

Sri Lanka Original Narrative Summary: 28/03

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01. President Ranil Wickremesinghe says SL’s access to the growing Indian and African markets should not be disrupted by any ‘big power rivalry’ or conflict; asserts Sri Lanka supports ASEAN’s vision of the Indo-Pacific region and is committed to ensuring the freedom of navigation in the Indian Ocean and the security of undersea cables, as it is essential for the future of the country.

02. Finance State Minister Ranjith Siyambalapitiya says Sri Lanka is due to receive US$ 7 billion more as a debt from two foreign banks, ADB and WB; stresses the international trust lost to the ‘debt default’ announced in April last year was restored following the IMF’s EFF.

03. Auditor General W.P.C. Wickramaratna warns many govt agencies have not yet handed over their financial statements on time, and in the backdrop the fulfillment of the conditions imposed by the IMF in the granting of loans to Sri Lanka may also be hindered; laments some public bodies tend to submit their statements of five years at once beyond the ‘correct procedure,’ and such reports cannot be accepted.

04. A Parliament Select Committee appointed to probe the levels of child malnutrition in Sri Lanka: Expected to inquiry into whether the child malnutrition issue in Sri Lanka is aggravating, to identify short-term, medium-term and long-term solutions to be implemented, and to oversee the speedy implementation of the measures due on establishment.

05. Senior Director of the global human rights watch dog Amnesty International Deprose Muchena arrives in Sri Lanka for the launch of Amnesty’s global annual report: Set to address the event as the key speaker: Aims to use his presence to highlight and stress on the urgent necessity to protect and promote human rights in Sri Lanka.

06. A Cabinet paper presented on the salaries of the public servants expecting nominations to contest the LG Polls: About 3,000 public servants expecting nominations and deprived of their salaries are suffering due to the incessant delay in the holding of the Polls: Subject Minister Janaka Wakkumbura said the aforementioned Cabinet paper will resolve the matter.

07. Drug trafficker ‘Army Sanath’ believed to be the weapons mule to underworld gangster Nandun Chinthaka alias ‘Harak Kata’ arrested by the Police STF: Suspect wanted for a series of crimes and arrested for the possession of 15 g of heroin: Sanath at the behest of Kata said to have had delivered arms used to commit shooting, and wiped them clean after the crimes were committed, later to be handed over to various other individuals.

08. IOC Chief Shrikant Madhav Vaidya called on President Ranil Wickremesinghe over the weekend: Vaidya presents 500 IOC-produced indoor solar cooking systems to Sri Lanka, and a unique jacket made of sustainable threads retrieved by recycling PET bottles under India’s ‘Unbottled Initiative’.

09. Finance State Minister Ranjith Siyambalapitiya says the sale of alcohol and cigarettes has dropped by 30 – 40 per cent, due to the imposition of a higher tax on them; adds most low-income earners are unable to afford alcohol and cigarettes.

10. The Sri Lanka Rupee on Monday indicates another slight depreciation against the US Dollar: Buy price Rs. 314.82; Sell price Rs. 332.58: The US Dollar said to be sold for higher prices in the black market.