Sri Lankan Rupee exhibited stability against the US Dollar at various commercial banks, maintaining a similar position to Tuesday’s rates.
At Peoples Bank, the buying and selling rates for the US Dollar held steady at Rs. 323.39 and Rs. 334.66, respectively.
Contrarily, Commercial Bank noted a slight shift, with the buying rate of the US Dollar decreasing from Rs. 322.74 to Rs. 322.22, while the selling rate increased marginally from Rs. 333 to Rs. 333.25.
Meanwhile, Sampath Bank reported unchanged rates for the US Dollar, with both the buying and selling rates holding firm at Rs. 324 and Rs. 334, respectively. Overall, the Sri Lankan Rupee maintained relative stability against the US Dollar across these banking institutions.
Colombo (LNW): Asian Development Bank will finance high priority needs of Sri Lanka, specifically targeting infrastructure development and the ongoing structural reform program of the country, exceeds US$ 4 billion.
It has recently extended a sum of US$ 60 million Financial Assistance from ADB under Second Integrated Road Investment Program – Tranche 4.
The loan of $ 60 million will be provided from ADB’s Concessional Ordinary Capital Resources.
The total investment cost of the 4th tranche is estimated at $68.5 million, out of which$ 8.5 million has been agreed to be borne by the Government.
The relevant Loan Agreement for the Second Integrated Road Investment Program (Tranche 4) was signed by. K.M. Mahinda Siriwardana, Secretary, Ministry of Finance and Takafumi Kadono, Country Director, ADB Sri Lanka Resident Mission, on 28th November 2023.
Meanwhile the ADB has assured that it ill continue financing high priority needs of Sri Lanka, specifically targeting the ongoing structural reform program of the country, exceeds US$ 4 billion.
This was revealed following the strategic dialogue taken place during the three day period to finalise the annual Country Programming exercise, a five year lending and non-lending indicative pipeline from ADB resources.
Country Programming Mission was held between the Government of Sri Lanka and the Asian Development Bank from 16 to 18 August 2023 at the ADB Headquarters, finance ministry sources said.
Priyantha Rathnayake, the Deputy Secretary to the Treasury who headed the Government delegation, held discussions with Shixin Chen, the Vice President of ADB and other senior officials of ADB as well as the senior Directors in- charge of each of the sectors.
Sri Lanka is a founding member of the Asian Development Bank (ADB). To date, ADB has committed 482 public sector loans, grants, and technical assistance totaling $11.2 billion to Sri Lanka.
Cumulative loan and grant disbursements to Sri Lanka amount to $9.42 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds.
ADB’s ongoing sovereign portfolio in Sri Lanka includes 41 loans and 1 grant worth $3.64 billion
The Government of Sri Lanka is planning to borrow USD 60 million from the Asian Development Bank (ADB) under the Second Integrated Road Investment Program (Tranche 4) to finance carrying out the critical works of the already commenced and incompleted road sections of the overall Integrated Road Investment Program to improve road safety and minimize public inconvenience.
Colombo (LNW): Japan has pledged to continue its assistance towards implementing Sri Lanka’s demining programme in the Northern and Eastern provinces.
Japanese Ambassador to Sri Lanka Mizukoshi Hideaki signed the grant contracts of two demining projects under the scheme of “Grant Assistance for Grassroots Human Security Projects.”
The agreements were signed with Mines Advisory Group and HALO Trust.
The Government of Japan has provided a total sum of US$ 729,925 (approx. Rs. 238 million) for these two projects with MAG and the HALO Trust to extend its support for humanitarian demining activities in the Northern and Eastern provinces of Sri Lanka.
Japan has been a major donor in demining activities in Sri Lanka since 2002, and the total amount of assistance exceeds US$ 44 million.
It is expected that these projects by MAG and HALO will together contribute to resettlement and livelihood support for a total of 10,977 IDPs (internally displaced people) in the Northern and Eastern provinces.
The development of the conflict-affected areas is one of the priority areas of Japan’s official development assistance policy to Sri Lanka.
Ambassador Mizukoshi strongly reiterated that the Government of Japan has been committing its role as a leading donor in demining activities and will continue to provide the necessary support to achieve “Mine-Impact-Free Sri Lanka.”
Following the conclusion of Sri Lanka’s 30-year war in 2009, approximately 1.6 million landmines remained buried in the ground, unmarked and largely unrecorded, causing extensive internal displacement in the Northern Province and other areas.
The Sri Lanka Director of the National Mine Action Centre (NMAC) and the Secretary to the Ministry of Urban Development and Housing, W.S. Sathyananda, highlighted the achievements of Sri Lanka’s mine action programme, which was established in 2002 and continued until 2023.
He revealed that a total of 202 square kilometres of land had been declared free of anti-personnel mines and Explosive Remnants of War (ERW), allowing local communities to resume their day-to-day activities.
Furthermore, the programme successfully destroyed over 843,000 Anti-Personnel mines and 360,700 Unexploded Ordnances (UXOs), ensuring the safety of the population in affected areas.
He noted that presently, 15.44 square kilometres of heavily contaminated hazardous areas remain uncleared and they are in very close proximity to population centres.
Japan, one of the top donors for demining, has been offering its generous support for demining and other development activities among other countries that also support Sri Lanka.
Japan is the major, longest-supporting donor in the area of mine clearance in Sri Lanka since 2002, assisting all the four demining agencies presently operating in Sri Lanka and so far.
Japan has offered USD 43.3 million in assistance rendered for demining activities through its Grant Assistance for Grassroots Human Security Project, noted the NMAC Director.
According to a government source speaking to Reuters on Wednesday (29), Sri Lanka has been informed of a debt-restructuring agreement with creditor nations. However, formal confirmation in the form of a letter from the official creditor committee is pending.
This anticipated agreement follows closely on the heels of the island nation’s recent deal with the Export-Import Bank of China, which covered approximately $4.2 billion of the country’s outstanding debt. The new agreement with the group of creditor nations arrives at a crucial time for Sri Lanka, grappling with substantial debt burdens, signaling efforts to navigate and manage its financial obligations effectively.
Colombo (LNW): Sri Lanka has introduced a visa-free entry initiative for visitors from seven countries, including India, China, and Russia, as part of a pilot project.
The Immigration and Emigration Department has announced the immediate implementation of a free visa initiative for nationals of China, India, Indonesia, Russia, Thailand, Malaysia and Japan.
The move is effective till 31 March 2024 and serves as a pilot project aligned with the approval of the Cabinet of Ministers.
Under this initiative, foreign nationals from the specified countries holding Diplomatic, Official, Public Affairs, Service and Ordinary passports are eligible to benefit from a visa-free scheme.
However, they are required to apply for an Electronic Travel Authorisation (ETA) before arriving in Sri Lanka, with the application fee waived till the program’s conclusion in March 2024.
Tourists availing themselves of this scheme can enjoy a 30-day visa-free period, and a unique feature permits a double entry within 30 days from their initial arrival in Sri Lanka, as outlined in the official statement from the Department of Immigration and Emigration.
The free ETA application remains open only till 3 March 2024, and the 30-day free visa period cannot be extended beyond this timeframe. The statement emphasises that after the specified date, visitors seeking an extension must apply for a visa extension, subject to the appropriate fees.
The Controller (Visa) for the Controller General of the Immigration and Emigration Department underscored that the visa-free scheme exclusively pertains to the seven mentioned countries, while other nations must adhere to Sri Lanka’s standard rules and regulations for ETA.
This decision, announced by the country’s Foreign Affairs Minister, Ali Sabry, received approval from the Sri Lanka Cabinet.
The pilot project, which begins immediately, will be in effect until March 31, 2024. Minister Sabry shared this update, stating, “Cabinet approves issuing of free visas to India, China, Russia, Malaysia, Japan, Indonesia & Thailand with immediate effect as a pilot project till 31 March.”
Recently, the Ministry of Tourism had revealed that a Cabinet Paper was presented during a previous Cabinet meeting, suggesting the issuance of free tourist visas to foreigners from five countries who plan to visit Sri Lanka as tourists.
Sri Lanka’s tourism industry is setting its sights on a higher target for 2023, with the aim of attracting 2 million visitors, up from the previous goal of 1.5 million.
Tourism, a significant contributor to Sri Lanka’s foreign exchange earnings, faced challenges stemming from the COVID-19 pandemic and economic and political crises in the South Asian nation.
This adjustment reflects the industry’s determination to recover and thrive in the face of these challenges.
Colombo (LNW): Credit regulatory authority is to be established following the enactment of the credit regulation authority bill in parliament soon, Central Bank Governor Nandalal Weerasinghe disclosed.
This will enable the government to regulate the money lending business and the microfinance business and to provide for matters connected therewith, including protection of customers of said businesses.
He noted that this bill is to be presented in parliament for enactment soon and it will tackle unauthorized money lending and online loan business mushrooming at present.
The Central Bank Governor on last Friday revealed the establishment of the Credit Regulatory Authority, aiming to fill the regulatory void concerning credit lending firms.
The Credit Regulatory Authority is to address the absence of regulations for credit lending firms, thus far operating without specific regulations.
“The draft bill is approved by the Attorney General and gazetted now. It will soon get approval from the Parliament to make it a statute,” Weerasinghe said last Friday.
As the draft bill progresses through Parliamentary approval, the Central Bank hopes it will bring about responsible lending practices and overall financial stability to the sector.
The Governor noted that the new regulatory authority stands as a distinct institution from the Central Bank and will operate under the purview of the Finance Ministry.
The separation is designed to provide a specialised focus on credit-related activities and to streamline regulatory efforts.
Despite its independence, a representative from the Central Bank will hold a seat on the Board of the Credit Regulatory Authority.
The move comes amid former JVP Parliamentarian Wasantha Samarasinghe revealing that certain online loan providers were imposing exorbitant interest rates of 365%.
Speaking to the media last Friday, Samarasinghe called on the Central Bank and other relevant institutions to promptly intervene and implement regulatory measures to curb such lending practices.
He disclosed that certain companies operating in online lending, request users to download an app and submit a selfie, giving them access to all phone data, including contacts.
“These companies, charging a daily interest rate of 1%, engage in aggressive debt recovery tactics, demanding repayment within a week. If borrowers cannot comply, the companies resort to calling contacts and even use submitted selfies for public exposure on social media,” he said.
Samarasinghe expressed concern about the adverse impact of such lending practices, cautioning of potential severe consequences, including self-harm.
The Board of Investment of Sri Lanka recently unveiled a groundbreaking agreement signaling the advent of the country’s first-ever cable car experience at Ambuluwawa. Nestled within the central highlands, Ambuluwawa stands as a unique biodiversity complex and the nation’s inaugural multi-religious sanctuary.
This transformative project, spearheaded by an agreement worth US$ 4.5 million with Amber Adventure, promises to redefine Sri Lanka’s tourism landscape. The collaboration between the Board of Investment and the Ambuluwawa Biodiversity Center marks a pivotal moment in the country’s tourism sector.
The construction of Sri Lanka’s maiden cable car will harness the technical prowess and product expertise of the China Machine-Building International Corporation, as emphasized by the Board of Investment.
Colombo (LNW): Senthil Thondaman, Governor of the Eastern Province and President of the Sri Lankan Labour Congress, participated in the 2023 Loy Krathong Festival held at the Thai Parliament building, upon the invitation of the Wanmuhamadnoor Mata, Speaker of the Thai Parliament.
Thondaman extended congratulations to the Speaker, Senate President, diplomats, and Members of Parliament on Loy Krathong and graced the occasion.
Former President & SLPP Leader Mahinda Rajapaksa says people should base their decisions on proper data & facts, and not on noise, lies & propaganda: also says the SL economy grew at an average 6% annually during his 9 years as President, leading to per capita GDP increasing from USD 1,242 in 2005 to USD 3,819 in 2014: highlights the “debt to GDP ratio” was reduced ro 69% in 2014 from 90% in 2005: notes that after he left office, economic growth declined, reaching negative levels in 2019: attributes the economic decline from 2015-2019 to mismanagement due to accumulation of foreign commercial debt, particularly ISBs, during the post-2015 period.
Treasury Secretary Mahinda Siriwardana & 2 other officials from the Finance Ministry questioned for approximately 10 hours by the CID over the importation of Human Immunoglobulin.
President Ranil Wickremesinghe urges hotels to go above the Minimum Room Rate: asks them to harness SL’s culinary prowess, culture, diversity & scenic beauty: also asks industry to seek higher revenue: commends the anticipated achievement of 1.5mn tourists in 2023 & asks the industry to target 2.5 mn tourists next year.
Chamber of Commerce President Duminda Hulangamuwa says the economy needs it to expand at least by 4-5% annually to create new jobs: asserts 2023 was an “year of stabilization” with decline in inflation, interest rates, appreciation of Rupee and progress in fiscal & monetary reforms: analysts point out however that in 2023, economic growth has plummeted, millions of livelihoods lost, NPLs escalated, poverty doubled, peoples’ EPF balances slashed, & utilities (electricity, water, fuel & gas) usage significantly reduced.
SJB MP Vadivel Suresh reportedly removed from his position as the SJB’s Passara Organiser: decision has reportedly been taken in the wake of the MP voting in favour during the vote on the 2nd reading of the 2024 Budget.
Joint Apparel Association Forum says apparel exports continue its downward trend: October’23 exports decline 20% year-on-year to USD 331mn.
Finance Ministry’s fiscal report reveals 38 state-owned enterprises out of 52 strategic ones now running at a profit after massive losses in the recent past: transformation said to be due to the Govt’s reform measures of 2022/23, including cost-reflective electricity tariff adjustment, fuel price formula and revision of water tariff, etc.
Dept of Immigration & Emigration announces a “visa free” regime for nationals of China, India, Indonesia, Russia, Thailand, Malaysia & Japan, with immediate effect until 31st Mar’24: scheme launched as a pilot program to rebuild the tourism industry.
Govt to borrow USD 60mn from the Asian Development Bank under the 2nd Integrated Road Investment Programme: SL is currently only repaying loans taken from the ADB, World Bank, IMF & other multi-lateral financial institutions, after the default announcement of 12th April’22.
President Ranil Wickremesinghe says SL needs USD 100 bn to become a “net zero emitter” by 2040: adds there are no immediate plans to utilise green bonds: also says some funds will come from investors who are “interested”.
A historic moment unfolded early on Wednesday as the Ambassador of the Netherlands to Sri Lanka oversaw the official handover of six colonial-era treasures. Among these treasures was the famed “Lewke’s cannon,” adorned with gold, silver, and bronze, a symbol of cultural significance.
The artifacts, which also included the Cannon of Kandy, a Gold kastane, Singalese knife, a Silver kastane, and Two guns, were returned to Sri Lanka in response to the country’s request. Minister Vidura Wickramanayake accepted these prized possessions at the Bandaranaike International Airport.
Acknowledging the wrongful acquisition during the colonial period, the Dutch government noted that these objects held immense historical value and were obtained either through duress or looting.
