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SL trade deficit narrows to US dollars 583 million in April 2023

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By: Staff Writer

Colombo (LNW): The trade deficit continued to remain modest but it narrowed in April 2023, compared to a year ago, though it recorded a month-on month increase for the third consecutive month.

The deficit in the merchandise trade account narrowed to US dollars 583 million in April 2023, from dollars 728 million recorded in April 2022 due to a larger decline in imports, compared to the decline in exports.

However, the trade deficit showed an increasing trend on a monthly basis since January 2023. The cumulative deficit in the trade account during January to April 2023 was US dollars 1,444 million, a sizeable decline from US dollars 3,125 million recorded over the same period in 2022.

Earnings from merchandise exports declined by 12.6 per cent in April 2023, over April 2022, to US dollars 849 million, recording the lowest earnings since April 2021.

The decline in earnings from industrial exports, including garments, associated with slowing external demand mainly contributed to this contraction in export earnings in April 2023, compared to a year earlier.

Meanwhile, export earnings have declined month-on-month basis due to a broad-based decline in earnings from most of the major export categories, partly driven by low activities during the April holiday season.

Cumulative export earnings during January to April 2023 recorded at US dollars 3,846 million, a decline of 9.0 per cent over the same period in the last year

Expenditure on merchandise imports declined by 15.8 per cent to US dollars 1,431 million in April 2023, compared to US dollars 1,699 million in April 2022.

A decline in expenditure was observed in imports of intermediate goods and investment goods, while an increase was recorded in imports of consumer goods. However, there is an increase in the import expenditure in general since March 2023.

Meanwhile, cumulative import expenditure during January to April 2023 declined by 28.0 per cent over the corresponding period in 2022.

Expenditure on the importation of consumer goods increased in April 2023, compared to a year ago, led by higher expenditure on non-food consumer goods although food and beverages imports recorded a decline.

Expenditure on non-food consumer goods increased due to higher medical and pharmaceuticals (mainly, medicaments), while most of other subcategories declined, compared to April 2022.

Meanwhile, the decline in expenditure on food and beverages was broad-based, but the drop in imports of cereals and milling industry products (primarily, rice) and dairy products (primarily, milk powder) was notable.

Sri Lanka and France Celebrate 75 Years of Friendship with Vibrant Festival

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Sri Lanka and France are joyously marking their 75 years of diplomatic relations in 2023, culminating in the grand celebration of the French Spring Festival. Organized by the Embassy of France in Sri Lanka and Maldives and the network of Alliances Françaises, the 11th edition of the festival will be held from June 24 to July 13.

This momentous event aims to showcase the artistic collaborations and cultural exchanges between the two nations, highlighting the rich diversity of Sri Lankan and French creativity.

The French Ambassador to Sri Lanka and the Maldives, Jean François Pactet, announced that entry to the festival events would be free of charge, enabling everyone to partake in the festivities.

Kicking off the festival on June 24, the Fête de la Musique/International Music Day will feature a lively open mic session at the Alliance française in the afternoon, followed by an enchanting evening concert at the Sri Lankan Foundation Institute. The concert will showcase talented Sri Lankan bands and a special guest performer, French singer Léa PACI.

On July 5, the Alliance Française of Kotte in Colombo will host the Celebrate! photographic exhibition. The exhibition will feature the works of the winners of a photography contest, offering their unique perspectives on the chosen theme. Following its presentation in Colombo, the exhibition will travel to the Alliances françaises of Matara and Kandy, allowing a wider audience to enjoy the captivating photographs.

Film enthusiasts can look forward to the French Film Festival at the National Film Corporation from July 6 to 9. The festival will present a selection of six French movies spanning various genres, including comedy, thriller, documentary, and animation. Among the highlights is Cédric Klapish’s acclaimed film “En Corps” (Rise), released in March 2022. This heartwarming and inspiring movie tells a tale of resilience and healing, captivating audiences with its powerful storytelling.

President Grants Special Pardon to Inmates on Poson Full Moon Poya

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In light of the Poson Full Moon Poya, President Ranil Wickremesinghe has made the decision to grant a special state pardon to a number of prison inmates. The Prisons Department has clarified that this pardon is being issued under specific terms and conditions, in accordance with the constitutional powers vested in the Head of State.

Under this special pardon, inmates who have served one year or less in prison as of June 3 will be eligible for a 14-day pardon. Additionally, inmates who are currently incarcerated due to non-payment of fines will have the remainder of their prison sentences commuted.

The Prisons Department has further outlined that inmates who have received sentences of 40 years or more for non-payment of fines or other offenses, and have completed 20 years of their sentence, will also be granted this special pardon.

The granting of a special state pardon on the occasion of the Poson Full Moon Poya reflects the President’s compassion and desire to provide an opportunity for eligible inmates to reintegrate into society. This gesture aims to alleviate overcrowding in prisons and promote rehabilitation.

The Prisons Department will be responsible for implementing the necessary procedures to ensure the smooth execution of this special pardon. The details of the eligibility criteria and the specific terms and conditions will be communicated to the relevant inmates.

The country may again be in danger due to racist and antireligious statements – NMSJ

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The National Movement for Social Justice (NMSJ) has expressed concern over recent statements and activities that could endanger the country. They highlight the impact of irresponsible remarks on religious sentiments, urging everyone to be vigilant.

Drawing parallels to past tragic events, including the 1983 riots and the 2019 Easter Sunday attacks, the NMSJ emphasizes the importance of maintaining ethnic and religious harmony. They call upon political leaders, religious figures, civil society organizations, and the media to play their part in preventing any destructive outcome. The NMSJ urges citizens to act intelligently and responsibly to safeguard the nation’s future.

Import Restrictions on Hundreds of Items in Sri Lanka Set to Ease Next Week

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In a recent statement, State Minister of Finance, Ranjith Siyambalapitiya, disclosed that the existing import restrictions on hundreds of items are expected to be relaxed as early as next week. He revealed that approximately 300 to 400 items currently subjected to import controls will see a relaxation of these measures.

The State Minister emphasized the government’s intention to ease the import restrictions, which have been in place to address various economic challenges faced by Sri Lanka. The move aims to stimulate trade and provide more flexibility for businesses and consumers in accessing essential goods and materials.

Sri Lanka Original Narrative Summary: 02/06

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  1. President Ranil Wickremesinghe says the country’s development has been based on four pillars – fiscal and financial reforms, investment drive, social protection and governance, and state-owned enterprise transformation; delivers the measures taken by the government in the past nine months to assist the Sri Lankan economy to recover, as well as the next stages in the state’s social, economic and political reform agenda; vows nobody will be allowed to drag the country back to the state it was in a year ago.
  2. Chief of Defence Staff, General Shavendra Silva sends a letter of demand to MP Wimal Weerawansa over making ‘defamatory remarks’ in his recently launched book “Nine: The Hidden Story” accusing him being complicit in a conspiracy to overthrow the government; alleges the MP of bringing him into disrepute.
  3. Renowned economy news aggregator Bloomberg citing Standard Charted PLC and BMI warns despite the recent appreciation of the Sri Lanka Rupee, which climbed 1.4% to 289.91 per dollar on Wednesday, the Rupee is forecast to decline to 350 by the end of December, 2023, as the government moves to loosen import controls and secure a debt restructuring deal; adds the currency’s 27% gain this year has seen it capture the best spot returns globally, supported by rising tourist arrivals and inflows into the bond market.
  4. Tourism Minister Harin Fernando says Israel and Sri Lanka agree to launch direct flights in a bid to boost tourism: Flights are expected to attract around 2,000 – 5,000 Israeli tourists to Sri Lanka during May to September travel season.
  5. CBSL Governor Nandalal Weerasinghe says Sri Lanka will settle the US$ 200 million loan from Bangladesh in August or September: In April 2023, Bangladesh extended the repayment period by six more months.
  6. The Collective of Opposition Parties appoints several committees to study the proposed bills to be brought by the government, including the proposed Broadcasting Authority Bill: The Committee to study the Broadcasting Authority Bill chaired by Prof. Charitha Herath and comprises MPs Imthiaz Bakeer Markar, Gayantha Karunathilaka, Dr. Harsha De Silva and Eran Wickramaratne.
  7. IMF delegation led by its Dep. MD Kenju Okamura visits the Colombo Port City; observes the Port City operations and holds a long discussion regarding their contribution to the country’s economy and future plans: Okamura acknowledges the Port City operations are being handled smoothly: The delegation also draws their attention to the existing legal framework and the manner in which concessionary tax policies are implemented for foreign investors.
  8. China’s Vice Foreign Minister Sun Weidong says he believes that Sri Lanka will overcome the prevailing economic crisis very soon and approach the path of development; asserts China will provide all support required for this purpose.
  9. ‘Leno’ the Jaguar, who was acquired by the Dehiwala Zoom from the Best Zoo in the Netherlands last January, and a female Jaguar named ‘Leah’, who was acquired in 2019 from the Artis Zoo in the Netherlands, were housed together: The move comes in with the resumption of the international animal exchange programme that was temporarily suspended during the Covid pandemic.
  10. Star spinner Rashid Khan will be sidelined for Afghanistan’s opening two matches of the three-ODI series against Sri Lanka due to a lower back injury: Khan set to miss the first two ODIs of the series against Sri Lanka but expected to return for the third and final match.

CBSL Confirms USD 200 Million Loan Repayment Deadline

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The Governor of Sri Lanka’s Central Bank recently announced that the country’s borrowing of USD 200 million will be settled in August or September 2023. Speaking at a briefing following the decision to relax policy rates, the Governor assured reporters of the bank’s commitment to meeting the repayment timeline.

Sri Lanka, grappling with a severe shortage of US dollars for several months, had borrowed the funds from Bangladesh in May 2021. The original repayment deadline was set for April of the following year but was not fulfilled.

In April last year, Sri Lanka made headlines when it declared default on its entire external debt of $51 billion. Pursuant to the agreement with Bangladesh, the loan was initially expected to be repaid by March.

However, due to the persistent shortage of foreign exchange reserves in the island nation, Sri Lanka sought an extension of the repayment period from Bangladesh Bank. The extension was granted, taking into account Bangladesh’s own depleting foreign exchange reserves.

Under the revised deadline, Sri Lanka is now required to repay the loan by September this year. The Central Bank’s Governor expressed the institution’s determination to fulfill its obligations and settle the outstanding amount within the agreed timeframe.

This development sheds light on Sri Lanka’s ongoing efforts to address its economic challenges and stabilize its financial position, as it grapples with the repercussions of the acute shortage of US dollars and works towards strengthening its foreign exchange reserves.

Chinese Vice Foreign Minister Assures Support for Sri Lanka’s Economic Recovery

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During his visit to the Malwatte Temple, China’s Vice Foreign Minister, Sun Weidong, expressed confidence in Sri Lanka’s ability to overcome the current economic crisis and embark on a path of development. He assured that China would provide the necessary support to aid in this endeavor.

Vice Minister Sun emphasized the role of Buddhism in fostering strong relations between the two countries and expressed China’s commitment to further nurturing this friendship in the future. His visit to the temple included receiving blessings from the Chief Prelate of the Malwatte Chapter, Most Venerable Thibbotuwawe Sri Siddhartha Sumangala Nayake Thera.

Highlighting the significance of Sri Lanka within the land route of the Silk Road, Vice Minister Sun stated that China considers the country to occupy a crucial position. He reaffirmed China’s track record of assisting Sri Lanka during times of economic difficulties and assured that such support would continue in the future.

Vice Minister Sun also mentioned that seven Chinese temples had taken the initiative to provide dry food items to 20,000 monks and 50,000 economically disadvantaged families in Sri Lanka. He expressed the intention to implement similar programs in the future.

The Chief Prelate of the Malwatte Chapter acknowledged the historical ties between Sri Lanka and China, attributing the strengthening of these relations to the arrival of Bikkhu Fa-Hsien. He also noted that the establishment of the Bikkhuni Sasana in Sri Lanka was a result of Chinese initiative.

Furthermore, the Chief Prelate expressed gratitude for China’s assistance through the Port City Project, emphasizing its immense value to Sri Lanka. He conveyed the country’s hope for continued support from China in the future.

The visit of China’s Vice Foreign Minister highlights the mutual commitment to economic cooperation and the preservation of cultural ties between China and Sri Lanka.

Showers Expected in Multiple Provinces, Caution Advised

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In the latest weather update, the Department of Meteorology has announced that several spells of showers are expected to occur in the Western, Sabaragamuwa, Central, and Southern Provinces of Sri Lanka. Residents in these areas are advised to prepare for potential rainfall throughout the day.

Furthermore, the districts of Galle, Matara, and Kalutara are likely to experience fairly heavy showers, with precipitation levels exceeding 50 mm in some locations. This increased rainfall could lead to localized flooding or waterlogging, urging residents to remain vigilant and take necessary precautions.

Meanwhile, the North-western province may witness a few showers, although they are expected to be less intense compared to the aforementioned areas. Residents in this region should still be mindful of the possibility of rainfall.

As the day progresses, the Uva and Eastern provinces are forecasted to experience showers or thundershowers in several places during the evening or night hours. This weather pattern could potentially bring along temporary localized strong winds and lightning, which may cause damage. Therefore, the public is strongly advised to take adequate precautions to minimize any potential harm or property damage.

The Department of Meteorology encourages individuals in the affected provinces to stay informed about weather updates through official channels and remain cautious during thundershowers. It is important to keep a safe distance from tall objects, such as trees and electrical poles, and avoid open areas during periods of heavy rain and thunderstorms.

‘Mojo Story’ digital platform interviews High Commissioner of Sri Lanka to India

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One of the largest and prominent digital media platforms in India, ‘Mojo Story’ interviewed Sri Lanka’s High Commissioner to India Milinda Moragoda on June 01. Team leader of the Platform, award- wining television journalist Barkha Dutt conducted the interview.  

Mojo Story is a news media platform, which has a large audience of over 630,000 subscribers.

Barkha Dutt is a senior journalist, anchor, and a columnist with more than two decades of reporting experience. She is India’s only Emmy-nominated journalist who has won multiple national and international awards, including the Padma Shri, which is India’s fourth-highest civilian honour.

High Commission of Sri Lanka

New Delhi

01 June 2023