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Sri Lanka Gem and Jewellery Exhibition held in Shanghai

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A Sri Lankan Gem and Jewellery Exhibition was held at The St. Regis Hotel in Shanghai between 22 to 23 March 2023 with the participation of Zam Gems Sri Lanka under the patronage of Sri Lanka Consulate General in Shanghai.

At the exhibition, Sri Lankan gems which included blue sapphires, pink sapphires (rubies), Alexandrite and Cat’s-eye Chrysoberyl were displayed. In addition, a variety of jewellery including necklaces, rings, earrings, bracelets which were crafted using above mentioned Sri Lankan gems and stones were also exhibited.

The Chairman of Shanghai Jade and Gem Exchange Simon Chan participated in the event with his team of officials and reputed Chinese buyers.  In addition, many other buyers across China, Gem and Jewellery traders, gem collectors, members of Shanghai Diplomatic Corp,  expatriates as well as other interested parties and visitors were present at the event.

Further, the Consulate used this opportunity to promote Sri Lanka tourism by displaying and distributing Sri Lanka tourism brochures among prospective gem buyers, members of Diplomatic Corp and visitors while responding to tourism related queries.

This event, which was the 01st Gem and Jewellery exhibition held in Shanghai in the aftermath of the opening up of Chinese borders (ending months long Covid-19 restrictions), proved to be a huge success

Consulate General of Sri Lanka

Shanghai

24 March 2023

Transformative Process Needed For National Reconciliation

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National Peace Council of Sri Lanka: There have been media reports of a ministerial delegation visiting South Africa to undertake a study of the Truth and Reconciliation Commission (TRC) and the reconciliation process that took place in that country over two decades ago.  The South African reconciliation process, and its Truth and Reconciliation Commission in particular, have gained worldwide recognition for being a pioneer in dealing with human rights violations and war crimes that took place in the course of the struggle against Apartheid. 

An important feature of the South African TRC was its openness and transparency. The public hearings held by the TRC ensured that South Africans became aware of the violations that had been committed during the apartheid years.  The National Peace Council (NPC) believes that such a commission could provide Sri Lankan with renewed hope in terms of peace and reconciliation for those who have been affected by gross human rights violations. It is hoped the TRC will enable families of the missing to have the opportunity to learn about the fate of their relatives, who went missing during the war and leftist insurrection.

The reconciliation process should be a home grown one which is organic to Sri Lanka. If the process is organic, then it will not be rejected inasmuch as a human body will reject and organ which is foreign. NPC believes that Sri Lanka should venture beyond retributive justice and restorative justice. While the criminal justice system uses retributive justice as a form of deterrence this has not provided protection against the repetition of crime.  Restoring society to the pre-war period is not adequate to achieve reconciliation, neither is punishing those involved as it can polarize society in a manner where there is no organic social consciousness of guilt.  NPC believes that the transformative approach of the South African model is more suitable than the retributive justice process which is not suitable for ethnic conflicts or large scale conflicts.

The challenge will be to find solutions that are in line with Sri Lankan values and forms of justice that are accepted by the Sri Lankan people along with the rejection of violence. Accordingly, NPC believes that it is necessary for the TRC to be representative to instill confidence in the victims.  It is of paramount importance that the members of the commission are selected via a consultative process as was the South African TRC where its members were selected through an open countrywide nomination process and publicly interviewed by an independent selection panel comprising representatives of all the political parties, civil society, and the religious bodies in the country. Hence those studying the TRC process need to ensure that a transparent process emerges in the establishment and implementation of a TRC in order to achieve peace and reconciliation in Sri Lanka. 

Thalatha Athukorala appointed as the Chair of the Sectoral Oversight Committee on Children, Women and Gender

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Hon. Thalatha Athukorala, Member of Parliament appointed as the Chair of the Sectoral Oversight Committee on Children, Women and Gender

Hon. Thalatha Athukorala, Member of Parliament was appointed as the Chair to the Sectoral Oversight Committee on Children, Women and Gender unanimously at its first meeting held on 22.03.2023 in Parliament.

Hon. (Mrs.) Manjula Dissanayake, Member of Parliament proposed the name of the Chair while Hon. (Mrs.) Muditha Prashanthi , Member of Parliament seconded it.
It was also revealed that this committee has the authority to summon institutions under the Ministry of Women, Children Affairs and Social Empowerment, Department of Probation and Child Care Services, National Child Protection Authority, National Secretariat for Early Childhood Development.

Members of Parliament Hon. Thissa Vitharana, Hon. Rohini Kumari Wijeratne, Hon. Mudita Prishanthi, Hon. Rajika Wickramasinghe, Hon. D. Weerasinghe, Hon. Manjula Dissanayake, Hon. (Dr.) Harini Amarasuriya and Hon. Jagath Samarawickrama were present at this committee.

SL export earnings decline further in February to around US$1 billion

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Reflecting lower global demand and rising inflation, earnings from exports declined further for the second consecutive month as February merchandise shipments were down by 8.06% year-on-year to $ 1 billion, the Export Development Board said yesterday.

Although Sri Lanka’s export sector began 2023 on a negative note, earnings however managed to surpass the $ 1 billion mark.

Despite the earnings dip YoY in the first two months, it was higher than in 2021. In January earnings were up by 7% and the February performance was up by 6% compared to 2021.

For 2023 the EDB targets to achieve over $ 15.93 billion from merchandise exports, up from $ 13.01 billion achieved in 2022.

Export earnings from tea, which made up 12% of merchandise exports, increased by 9.14% YoY to $ 204.13 million in February 2023.

Earnings from the export of tea packets (21.24%) and instant tea (27.52%) increased in February 2023 compared to a year earlier. However, earnings from the export of bulk tea (-15.33%) and tea bags (-27.03%) decreased in February 2023.

In addition, export earnings from the Electrical and Electronics Components (EEC) increased by 13.72% YoY to $ 43.01 million in February 2023 with a strong performance in exports of other EEC products (22.12%).

Earnings from the export of spices and essential oils increased by 27.0% to $ 34.48 million YoY with a strong performance in cinnamon (20.16%) and cloves (412.82 %). Despite the increase recorded in the sector, earnings from pepper and essential oils decreased by 37.90% and 43.41% respectively in February 2023 compared to the same period last year.

Apparel and textile exports dropped by 2.32 % YoY to $ 483.35 million in February 2023. Though earnings from exports of apparel decreased by 14.75%, earnings from export of textiles increased by 146.67% in February 2023 compared to the same period in 2022.

Rubber and rubber finished products earnings have dropped by 17.81 % YoY to $ 76.58 million in February 2022, with negative performance in exports of pneumatic and retreaded rubber tyres and tubes (-6.10%) and industrial and surgical gloves (-45.38%).

On monthly analysis, export earnings of kernel products and fibre products categorized under the coconut-based category decreased by 14.65% and 37.63% respectively in February 2023 compared to the same period in 2022. However, earnings from coconut shell products increased by 28.67% YoY in February 2023.

Export earnings from liquid coconut milk which is categorized under the coconut kernel products decreased by 16.68% YoY to $ 8.69 million in February 2023.

Being the largest contributor to the coconut-based sector, coco peat, fibre pith and moulded products which are categorized under the coconut fibre products, decreased by 35.87% YoY to $ 10.55 million in February 2023.

Earnings from activated carbon, which is categorized under the coconut shell products increased by 2.18% YoY to $ 10.76 million in February 2023.

Seafood export earnings also dropped by 5.57% YoY to $ 19.99 million in February 2023. This decrease was mainly due to the decline in earnings from the export of frozen fish (-3.72%), fresh fish (-7.42%) and shrimps (-38.34%). However, export earnings from ornamental fish increased by 37.93% YoY to $ 2 million in February 2023.

From January to February 2023, merchandise exports decreased by 9.68 % to $ 1.98 billion compared to the corresponding period of 2022.

Sri Lanka seeks Indian aid for further development of transport sector

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Sri Lanka has sought Indian government assistance to further develop the country’s infrastructure and transport sectors.

High Commissioner of Sri Lanka to India Milinda Moragoda met with Indian Minister of Road Transport and Highways, Shri Nitin Gadkari, in order to discuss opportunities for bilateral cooperation in the infrastructure and transport sectors, SL diplomatic sources in India revealed.

The meeting took place in New Delhi, and centered on a range of matters pertaining to the collaboration and partnership between the two countries in thost tow sectors.

High Commissioner Moragoda requested the assistance of Minister Gadkari in sharing India’s experience in public-private partnerships in the highways sector with Sri Lanka, and proposed to set up a platform through which this experience could be shared with the relevant stakeholders in Sri Lanka.

Moragoda also suggested that Indian investors be encouraged to look at investment opportunities in Sri Lanka’s infrastructure sector.

Minister Gadkari expressed his support to these proposals, explaining that as India aims to become a developed economy by 2047, its government has focused on boosting infrastructure, including highways and road networks.

India’s spending on infrastructure has increased significantly over the last decade, and is expected to hit a record Rs. 10 trillion for the next financial year.

Meanwhile, cooperation in the electric mobility sector was also discussed, exploring the possibility of India sharing its experience, expertise and best practices of the electrical vehicle industry with Sri Lanka.

High Commissioner Moragoda also sought the assistance of Minister Gadkari in encouraging Indian private companies from the electric mobility sector to invest in Sri Lanka.

Briefing the Indian Minister on Sri Lanka’s road to economic recovery, Moragoda highlighted India’s pivotal role therein, and presented a copy of his policy roadmap the “Integrated Country Strategy for Sri Lanka Diplomatic Missions in India 2021/2023” to Minister Gadkari.

The Minister, in turn, presented a copy of his latest book ‘Unmasking India’ is a compilation of thought articulated by him during the Coronavirus pandemic on the Armanirbhan Bharath through a series of webinars.

Hailing from the State of Maharashtra, Shri Nitin Gadkari is the longest serving Minister for Road Transport and Highways of India currently running his tenure for over eight years since 2014.

While having authored several books, he also served as the President of the Bhartiya Janata Party (BJP) from 2009 to 2013, and has held the ministerial portfolios of Micro, Small & Medium Enterprises; Shipping; Water Resources, River Development & Ganga Rejuvenation; and Rural Development & Panchayati Raj.

SL Food crisis to worsen amid poor agri production, price spikes and economic crisis

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Food crisis in Sri Lanka likely to worsen amid poor agricultural production, price spikes and ongoing economic crisis.

30 percent of the Sri Lanka population are experiencing acute food insecurity and will likely deteriorate further unless urgent assistance is provided,an international humanitarian aid society claimed.

At least 6.3 million people in Sri Lanka are still facing moderate to severe acute food insecurity and their situation is expected to worsen in 2023 if adequate life-saving assistance and livelihood support is not provided.

Two consecutive seasons of poor harvests led to a nearly 50 percent drop in production coupled with reduced imports of food grains due to foreign exchange constraints.

Without assistance, the food security situation is expected to deteriorate further, particularly during the October 2022 to February 2023 lean season, driven by poor harvests of staple foods, in particular paddy rice, and the ongoing economic crisis

The International Federation of Red Cross and Red Crescent Societies said that the impact of the economic crisis is still high in Sri Lanka, and various studies have highlighted that the crisis is not going away anytime soon, but will become protracted, and people’s situation will steadily deteriorate further over time.

“6.3 million People in Sri Lanka are still facing moderate to severe acute food insecurity and their situation is expected to worsen in 2023 if adequate life-saving assistance and livelihood support is not provided. Therefore, it is crucial to provide continuous support to crisis-affected people in Sri Lanka,” IFRC said.

The IFRC said that its operational update is issued mainly to inform that the operation is to be extended until 31 December 2023, and will be incorporated into the Sri Lanka Country Unified Plan.

A standard 12-month report of the appeal will be issued by 31 July 2023 to inform the progress of the operation until 6 June 2023.

Onwards, the project code for the operation will be maintained, and reporting of the operation will be aligned with the bi-annual reporting of the unified plan of Sri Lanka.

Additionally, a work plan for the operation until the end of 2023 will be available by the time the 12-month report is issued.

The current crisis in Sri Lanka is affecting all sectors of society and has created the conditions for increased vulnerability, poverty, and destitution among a significant proportion of the population.

In October 2022, approximately 9.6 million people (42 percent of the total population) fell below the international poverty line for lower-middle-income countries.

More than 60 percent of families are eating less, and eating cheaper, less nutritious food.This comes at a time when financial constraints have forced the government to scale back on nutrition programs, such as school meals and fortified food to mothers and undernourished children.

According to UN OCHA, an estimated 5.7 million people (26 percent of the population) or more are now in need of humanitarian assistance, with at least 4.9 million (22 percent) being food insecure.

Sri Lanka unveils debt restructuring strategy with 20% haircut by end April

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Sri Lanka is gearing up to embark on the country’s massive external debt restructuring process following the announcement of debt treatment strategy next month stepping into the most difficult and complex creditor persuasion task ever faced by the island nation, finance ministry sources confirmed.

The finance ministry and the central bank step up talks with commercial creditors in the third week of April ahead of an International Monetary Fund review of a bailout package in six months after receiving the US $330 million first tranche of the $2.9 billion IMF Extended Fund Facility.

The crisis-hit island has secured financing assurances from all its major bilateral creditors, including India and China, and it has paved the way to give its final approval for a $2.9 billion, four-year bailout package on March 20 IMF said on last Tuesday.

The bailout is the culmination of 200 days of intense negotiations as Sri Lanka looks to emerge from its worst economic crisis in more than seven decades.

Holders of Sri Lanka’s international sovereign bonds face a 20 per cent principal haircut in the country’s debt restructuring as well as maturity extensions and a reduction in coupons, according to a Barclays report.

Investors’ focus has shifted to the restructuring of Sri Lanka’s $14.3 billion sovereign dollar bonds after Colombo got final sign off on a $3 billion programme from the International Monetary Fund (IMF) earlier this week, a financial lifeline in its bid to recover from its worst economic crisis in more than seven decades.

Sri Lanka defaulted on its foreign debt in April 2022 as the country plunged into its worst economic crisis, running out of cash to finance even the most essential imports and causing massive social unrest.

Although the total government external debt amounts to US$ 36.73 billion as at end of 2022, only bilateral debt amounting to $10.814 billion is considered at present for the debt restructuring process.

The total International Sovereign Bond ( ISB ) debt stock with arrears as at end of 2022 was $14.286 billion with different maturity periods and varied interest rates, the Ministry’s latest data shows.

It was categorized as commercial debt and most of ISB’s maturity periods will fall on 2024, 2025, 2026, 2027, 2028 and 2029. Each and every ISB has different dates of maturity and varied interest rates.

The only issue at hand is the repayment of $1.25 billion ISB on April 18 this year. The government is servicing other multilateral loans including from the World Bank and ADB amounting to $9.499 billion.

Barclays estimates investors holding the country’s sovereign bonds could see a recovery value – the percentage they recoup on their investment – in the mid-40s while exit yields could range from 12 per cent to 15 per cent.

An inclusion of instruments such as GDP-warrants which link payout to a country’s economic performance in the debt restructuring could potentially improve the recovery value to the mid-50s.

Analysts at investment firm Tellimer put together “three baseline restructuring scenarios” with six-year maturity extension for all of them and nominal haircuts raging 15 per cent to 30 per cent, with higher coupons corresponding to lower haircuts.

Each scenario “results in public debt falling to around 111 per cent of GDP this year and below 95 per cent by 2032,” the firm added, in line with the IMF’s debt to GDP targets.”

Sustainable economic development goals cannot be achieved unless attention is paid to mitigating climate change – Sagala

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President’s Senior Adviser on National Security and Chief of Presidential Staff Mr. Sagala Ratnayake said sustainable economic development goals cannot be accomplished without taking steps to mitigate climate change.
He said this while participating in the 10,000 sapling planting program organized by the LEO Youth Vision 2048 Club and the LEO Club at the Royal College, Colombo yesterday (23rd).

This program was organized in view of President Ranil Wickremesinghe’s birthday, which is today (24), and the required plants were distributed to the main schools of the Colombo District.
LEO members, including Senula Dilana, President of LEO Youth Vision 2048, coordinated this program.

Additionally, Mr. Sagala Ratnayake emphasized the importance of working with understanding and commitment to mitigate climate change, as it contributes to economic development.


Expressing his views, Mr. Sagala Ratnayake said;

Respected Minister of Education,

I extend my gratitude to you for extending an invitation to me to partake in this event. This hall and stage hold many fond memories for me. Despite the passage of time, I have lost count of the number of occasions I have graced this stage. During my time as a student at Royal College, I actively engaged in various extracurricular activities, including sports, and held positions such as prefect and head prefect. These experiences proved invaluable to me.

The experience provided me with substantial fortitude for my political endeavours, and I believe it has the capability to allure more admirable individuals. Observing enthusiastic young students aspiring to hold the position of head prefect delighted me. I aspire for these students to progress in their educational pursuits, eventually ascending to positions of prominence within society and, ultimately, assume the mantle of leadership for the nation.

We have had a few great days as Royalists. We won the Royal-Thomian match on Saturday. Then as a Nation on Monday we were given the great news that we are no longer a bankrupt state that we are now coming out of it.

IMF Executive Board approved Sri Lanka’s program under the Extended Fund Facility. Many people think we will get a lot of money with the IMF program. More than the money that we are going to get, it comes in the form of a loan which you’ll have to repay in over a long period of time at very concessional rates.

But more than that, it is the stamp of confidence that the international community has given us. The IMF includes a lot of countries, including Sri Lanka will also members of it. But it’s a very stringent program many countries have been trying for over any year, maybe even as much as two, but still not been able to achieve it. Coming out of this economic crisis that came along with COVID and in some countries, the economy was mismanaged beyond COVID, which led to many countries going down like us. But we are the first to come out. We have a long way to go as well.

What is important is that we get our policies right and our economic framework right. We must make it easy for people to come and invest in Sri Lanka, for Sri Lankans to invest in Sri Lanka, the confidence must be there that it is a level playing field that it is a transparent field out there that gives any investor the confidence that is required to come and transact in Sri Lanka. It’s only with investments like that that we can improve our economy and make it a better tomorrow for the generations like you.

What we are doing now, we are doing for you. It won’t be for many of us in this first role. What we build on the foundation we build now, you all will build on further and you all will reap the benefits. So it is important you understand it. It is important that you participate in it; you read about it, you get interested in it and you get involved in it. One of the most important components of coming out of this is also what you are trying to do today as the Leos coordinated by the Leos of Royal College; you’re going to plant 10,000 trees.

I must say thank you to you, because you have chosen an important day, the 24th of April, to signify our honourable President’s birthday. Climate change is going to play a major role in our future. if we do not pay attention to it, if you don’t make a conscious effort to come out of it. Economic development or resurgence is going to be temporary. It’s going to be very difficult. It’s not going to be sustainable. There’s not going to be anything for the future generations. So it is very important. I won’t go into great length about it.

Climate change also means economic support. There are a lot of people out there in the world who are very committed to climate change and they encourage it and they supported financially. It’s now a financial tool as much as all the other financial tools like bonds and various things that we’ve heard about in the past few months along with this financial crisis we had. It’s going to be a very important tool that a country like Sri Lanka can really capitalize on.

So I’m grateful that the youth, the leaders have taken this on. Please push it harder. I think it’s important. We’ve had from time to time as society develops, as the country develops, we’ve had various extracurricular committees, societies coming up at schools like Royal. I remember we had the Buddhist brotherhoods and the Interact clubs, but then we had the Computer Society coming up later on as IT came in. Climate change is another important thing.

It’s something that you can add to your extracurricular activities, not just at Royal but at all schools. So with that thought in mind, with a final word to say thank you again, Leo, Senula and the team, all the leaders from the other schools that have joined this program. Thank you very much. And thank you very much, Royal College, for spearheading this and also for having me at this very important event.

I wish you all the very best. It’s your future that we all working for, so please join it and help us.
Minister of Education Susil Premjayant, Principal of Colombo Royal College Mr. R.M. Rathnayake, staff members and the students including the Head Prefect Kavisha Ratnayake were present on this occasion.

Sri Lanka Original Narrative Summary: 25/03

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  1. IMF says risks to its Sri Lanka program are “exceptionally high” because of the complex debt restructuring, unfavorable external environment, high inflation, and challenging political & social situation: also says the program runs significant risks of fiscal slippages, revenue mobilization and reserves buildup: warns a deeper crisis induced by a further economic fallout, weakened banking sector, exchange rate pressure and loss of market confidence could also complicate the program.
  2. LKR starts to depreciate once again against the USD after just 4 days of the IMF agreement: falls by nearly 1% to Rs.331.38; black market quotes up again at around Rs.345.00: market expects further depreciation.
  3. State Minister of Finance Ranjith Siyambalapitiya reveals USD 121 mn was used from the USD 333 mn received from the IMF to settle a loan installment due to India: analysts puzzled how Govt has done so in the context of its solemn assurance of “equal treatment” of all bi-lateral creditors and commitment to transparency.
  4. Fertilizer companies agree to reduce the price of a 50 kg bag of urea fertilizer by Rs.7,000: decision follows discussion with Agriculture Minister Mahinda Amaraweera.
  5. Top officials of the Health Ministry fail to appear before the HRC for a 3rd time to participate in the inquiry into the medicinal drug shortage in the country.
  6. Crowds protest outside residence of Bar Assn President Saliya Peiris, accusing him of representing infamous underworld figure and Drug Lord “Harak Kata”: Bar Assn says the protest is a serious hindrance to Pieris’ professional right to represent a client.
  7. Exports record USD 1,005 mn in Feb23: contraction of 8.1% YOY: cumulative export earnings for the first 2 months of USD 1,980 mn reflects a massive reduction of 9.7% YoY.
  8. Opposition leader Sajith Premadasa and other leaders of opposition Parties meet foreign diplomats: provide briefing on the current situation, the need to protect the country’s democracy & Constitution, and the need to conduct LG elections.
  9. Law & Order Minister Tiran Alles to await provision of detailed information on alleged incidents of certain Police stations falsely reporting drug-related cases, from Justice Minister Wijeyadasa Rajapakshe: previously, Rajapakshe had said that reports by Govt Analyst’s Dept have proven that certain drug related cases are being falsely reported to Courts by certain Police stations.
  10. Marine Environment Protection Authority officials say legal action in connection with the MV X-Press Pearl fire and marine disaster should be instituted within the next 58 days: previously various Govt leaders have stated that the Govt expects at least USD 1 bn as compensation.

An order for the IGP to appear before the Supreme Court

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An order has been issued to Inspector General of Police CD Wickramaratne to appear before the Supreme Court.

This is due to the non-implementation of an earlier order to prepare a series of guidelines and submit them to the court to prevent cases of shooting deaths when people in police custody are taken out for various investigations.

Accordingly, yesterday (24th) the three-member Supreme Court bench comprising of S Thureiraja, AHMD Nawaz and Achala Vengappuli ordered the Inspector General of Police to appear before the Supreme Court on April 3rd.