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Colombo stock market incurs a Rs. 254 billion loss so far this month

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By: Staff Writer

Colombo (LNW): The Colombo stock market suffered a Rs. 254 billion worth loss of value so far in October due to negative investor sentiment over lack of credible progress in resolving some of the major macroeconomic issues.

The market capitalisation of the CSE was Rs. 4.537 trillion as at end September and by yesterday it had dipped to Rs. 4.283 trillion reflecting a drop of quarter billion rupees.

The benchmark ASPI has lost 7% in the first 13 market days of October so far whilst for the active S&P SL20 it has been 8%.

Delay in securing the next release of IMF funding, external debt restructuring, continued downturn in manufacturing and export sector are among investor concerns.

However year to date, ASPI has offered a 24.4% return and 11.6% by S&P SL20 thanks to gains in the earlier part of the year.

The CSE yesterday marked its fourth consecutive dip amidst low turnover due to lacklustre investor interest. The ASPI was down by 1% and the ASPI by 0.8%. Turnover was Rs. 822.6 million involving 38 million shares.

Asia Securities said the indices trended downwards throughout the session dragged by BIL (-3.8%), CALT (-4.5%), MGT (-4.6%), HAYL (-3.2%), RCL (-2.5%), and CIC (-2.1%). However, LHCL saw a 7.1% increase following the Government’s announcement of the Expression of Interest (EOI) for the sale of its stake in the company.

From a technical point of view, the ASPI is retesting key retracement support zone 10,600 – 10,500 while approaching oversold Relative Strength Index (RSI) levels for the first time since August 2023 swing high levels. MELS (-14 points), HNBN (-9 points), and HAYL (-7 points) came in as the biggest laggards on the ASPI. Turnover was led by CTHR (Rs. 93 m), JKH (Rs. 64 m), and FCT (Rs. 64 m).

Asia said foreigners recorded a net outflow of Rs. 3.3 million. Net foreign buying topped in JKH at Rs. 23 million and selling topped in FCT at Rs. 12 million. October has so far seen a net foreign inflow of Rs. 121.4 million whilst for the year the figure is Rs. 3.8 billion.

First Capital said the Bourse closed in the red for the fourth consecutive session amidst continuous price declines stemming from index heavy weights and banks.

It said the ASPI moved negatively throughout the session and closed at 10,557 losing 90 points with investors resorting to the sidelines seeking direction on the upcoming budget.

However, SOEs namely SLTL and LHCL were among the top positive contributors to the ASPI owing to on-going privatisation talks.

Investors showed interest on Treasury counters, with anticipated decline in yields at the weekly T-Bill auction while defensive counters too enticed slight buying in the midst of uncertain market sentiment.

Public Consultation on Electricity Tariff Increase Underway at BMICH

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On Wednesday, the 18th of October, a crucial public consultation concerning the proposed increase in electricity tariffs is taking place at the Bandaranaike Memorial International Conference Hall (BMICH) from 9 a.m. The Chairman of the Public Utilities Commission Of Sri Lanka, Manjula Fernando, has disclosed that this consultation will involve discussions with 30 parties, including the Ceylon Electricity Board (CEB).

In recent developments, the PUCSL expressed concerns to the CEB regarding the data presented for the proposed electricity tariff increase, indicating that it may not align with the current state of affairs in Sri Lanka. In response to these concerns, the CEB has provided the PUCSL with a document addressing these issues.

CEB Chairman Nalinda Ilangakoon emphasized that the CEB is currently facing an operating loss of 22% and has submitted proposals to the PUCSL to address this challenge. The PUCSL Chairman has underscored that a final decision on the revision of electricity tariffs will be made after the conclusion of the public consultation on Wednesday.

Sri Lanka Original Narrative Summary: 19/10

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  1. Govt Medical Officers Assn Spokesman Dr Chamil Wijesinghe says patients seeking treatment at the state-run hospitals are asked to buy almost all medicines from the private sector: also says there are “issues” with the quality of the drugs used in Govt hospitals and doctors & nurses are now afraid to administer drugs to patients.
  2. PM Dinesh Gunawardena says 800 schools have been closed in the country: urges education officials to focus deeply on protecting & preserving existing ones: laments that these schools built by “elites” in distant regions have been closed.
  3. Court Productions Room at the Hulftsdorp Court Complex broken into once again: the 2nd unauthorised entry in 1 month: authorities yet to identify those individuals responsible for the twin break-ins.
  4. Minister of Justice Wijedasa Rajapaksha says there are no moves to scrap the Executive Presidency as it is “a difficult task”: asserts there is no way it can be done through the present Parliament: also says that however, a new electoral system has been proposed.
  5. President Ranil Wickremesinghe appoints a 9-member Commission headed by former Chief Justice Priyasath Dep to prepare proposals for electoral reforms.
  6. Commission to Investigate Allegations of Bribery or Corruption informs Fort Magistrate’s Court that it will not pursue the discovery of Rs.17.85 mn cash from former President Gotabaya Rajapaksa’s room at the President’s House in July, 2022, because of lack of evidence.
  7. Reportedly US-funded think-tank “Verité Research” raises concerns about SL’s IMF programme transparency & performance: highlights that, by end-September’23, only 40 out of 71 trackable commitments have been achieved: asserts this finding reveals a growing lack of transparency in the programme’s progress and a failure to meet the commitment to increase government transparency.
  8. Excise Commissioner temporarily suspends the Soft Liquor Licences (beer, wine etc.) given to establishments registered with the Tourism Development Authority, with immediate effect.
  9. Police Media Division announces that the public could now report incidents of Police personnel misconduct on the ‘118’ hotline: this hotline was initially established by the Ministry of Public Security to report crimes, but has now been extended.
  10. Minister Mahinda Amaraweera says although prices of chemical fertilisers including urea may increase due to escalating tensions between Russia & Ukraine, and Palestine & Israel, the prices of fertilisers provided to farmers in the country will not be increased.

Surath Ovitigama Appointed as Chairman of the Petroleum Development Authority

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Minister of Power and Energy, Kanchana Wijesekera, revealed the appointment of Surath Ovitigama as the Chairman of the Petroleum Development Authority. Minister Wijesekera introduced Surath Ovitigama as an energy sector expert with an impressive track record, boasting over 20 years of international experience. Ovitigama’s career has taken him to various energy hubs, including the UK, the Norway North Sea oil and gas sector, and South East Asia.

Notably, Surath Ovitigama had previously held the position of Director General of the Petroleum Development Authority starting in 2020. As the newly appointed Chairman, he will be entrusted with the crucial task of accelerating and executing the development and regulation of Oil and Gas exploration, offshore energy resources. He will also be responsible for establishing national policies, a roadmap, safety measures, and regulatory frameworks for the production, utilization, and export of green hydrogen.

President Wickremesinghe Advocates for Tropical Nations’ Climate Change Initiatives

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President Ranil Wickremesinghe emphasized the significance of tropical regions in the context of biodiversity and climate change challenges. According to reports from the President’s Media Division, he proposed the launch of a dedicated program to assist tropical countries in addressing future climate change challenges.

President Wickremesinghe underscored that tropical nations are home to the world’s most biodiverse regions, citing that 80% of the world’s endemic plants and 50% of coral reefs and mangroves are concentrated in these areas. He further mentioned Sri Lanka’s proactive efforts toward establishing an international university with a specific focus on climate change, capitalizing on the unique ecological context it possesses.

The President delivered these remarks during his address at the high-level conference, “Green Silk Road for Harmony with Nature,” which took place at the China International Conference Hall on October 18. This conference was held in conjunction with the 3rd “Belt and Road Initiative” International Forum. Notably, the conference was chaired by Han Zheng, Vice President of the People’s Republic of China. Distinguished figures, including the United Nations Secretary-General Antonio Guterres, and leaders from various participating countries, also shared their insights on the crucial subject of climate change and environmental harmony. President Wickremesinghe’s proposal underlines the growing global awareness of the need to protect and preserve the world’s biodiversity-rich tropical regions in the face of climate change challenges.

Prevailing rainy conditions to continue further

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Showers or thundershowers will occur over most parts of the island after 2.00 p.m.

Fairly heavy showers above 75 mm can be expected at some places in Western, Northwestern, Southern, Central and Eastern provinces.

Showers will occur in Western, Southern, Northwestern, and Eastern provinces during the morning too.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

PUCSL to announce electric tariff hike after public consultations

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By: Staff Writer

Colombo (LNW):The Public Utilities Commission of Sri Lanka (PUCSL) is set to announce the new electricity tariff revision following the completion of public consultations at the BMICH in Colombo today, power and energy ministry sources said.

The Ceylon Electricity Board (CEB) in its latest submissions to PUCSL this week has sought its approval for 10 percent electricity tariff increase reversing its previous proposal for 22 percent tariff hike, a high official of the ministry disclosed.

The CEB has informed PUCSL that it needs to continue the electricity bill increase for two years consecutively and the present tariff hike is essential to balance their expected revenue and power generation cost for the period of October to December this year.

Chairman of the PUCSL Manjula Fernando said that 30 parties including the Ceylon Electricity Board will be consulted during public consultations.

CEB Chairman Nalinda Ilangakoon said the CEB currently incurs an operating loss of 22percent adding that proposals to settle this were submitted to the PUCSL

The PUCSL has informed the Ceylon Electricity Board that the data presented by the CEB to increase the electricity tariffs is not in line with Sri Lanka’s state of affairs.

According to CEB monthly financial statements the income of the power utility in the months of July, August and September in 2023 has dropped by Rs 4573 billion.

CEB revenue of Rs. 55,163 million in July has dropped to Rs 53, 193 in August and it has further come down to Rs 50, 590 million in September.

Under this circumstance the the board has no option other than an impose a 22 percent traif hike or levy Rs 8 from each and every slab of electricity bill payment of consumers, CEB disclosed.

The PUCSL has informed the CEB to submit a revised tariff submission considering the latest available data before Wednesday (18) due to certain deviations in the assumptions made by CEB in its tariff revision submissions.

In a letter addressed to the CEB’s General Manager, the Director General of the PUCSL states that with regard to the increase in demand, the CEB has forecasted demand of 44.70 GWh/day for September 2023 and 42.88 GWh/day on average for Oct-Dec 2023.

However, actual generation demand of September 2023 is 41.01 GWh/day and October 2023 is 41.30 GWh/day, he claimed.

He noted that “Therefore, assumed demand in the CEB proposal can not be substantiated with latest data.”

Regarding depleted hydropower, the CEB forecasted a starting hydro storage for October 2023 of 503 GWh and for November 2023 635 GWh.

As at today hydro storage is 668 GWh, and Inflow for Oct 1 to Oct 12, 2023 is 314 GWh which exceeds the estimates by considerable margin, he emphasized.

The PUCSL further noted that for Oct-Dec 2023, the CEB has forecasted a total coal dispatch of 1,444 GWh in May 15, 2023 submission and 1,334 GWh in Sep 4, 2023 submission.

However, the Commission says it envisages a drop in demand higher than the drop of coal dispatch.

Saudi Arabian Ambassador Meets with Sri Lankan Education Minister

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Saudi Arabian Ambassador Khalid bin Hamoud Alkahtani held a meeting with Sri Lankan Education Minister Susil Premajayantha in his office at the Ministry of Education. The discussion covered various issues of mutual interest and explored avenues for strengthening the amicable relationship between the two nations.

President meets Pakistani Prime Minister Anwar-ul-Haq Kakar in Beijing

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President Ranil Wickremesinghe and Pakistan Prime Minister Anwaar-ul-Haq Kakar engaged in bilateral discussions in Beijing yesterday afternoon (17). This meeting took place on the side-lines of the ‘One Belt – One Road’ international conference in China.

During their meeting, both leaders emphasized the global imperative of cultivating a harmonious society free from animosity, prejudice and anger arising from racial, religious or ethnic differences. They stressed the paramount importance of addressing the challenge of fostering a unified society based on shared humanity, where divisions driven by race, religion or ethnicity give way to unity and mutual understanding.

Subsequently, President Ranil Wickremesinghe and Prime Minister Anwaar-ul-Haq Kakar engaged in an extensive discourse concerning the economic crises that affected both Pakistan and Sri Lanka, with a particular focus on strategies for recovery.

Moreover, the leaders deliberated on the critical developments unfolding in the Gaza Strip. In this regard, a consensus was reached to issue a joint statement, reflecting their common stance on the matter.

This pivotal meeting was further enriched by the presence of distinguished delegates, including Pakistan’s Finance Minister, Shamshad Akhtar and Sri Lanka’s Foreign Minister, Ali Sabry.

Tamil leaders should support the President’s program for national unity – State Minister S. Viyalanderan

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State Minister of Trade S. Viyalanderan, expressed the need for Tamil political leaders to collaborate with President Ranil Wickremesinghe’s flexible approach to achieve national unity and address the challenges faced by the Tamil population.

State Minister Viyalanderan emphasized that the economic difficulties experienced by the people during the recent past have begun to see some relief. He stressed the importance of everyone rallying behind the continuous and effective advancement of the President-led government’s program aimed at a complete economic recovery for the nation.

State Minister Viyalanderan made these remarks during a press briefing held at the Presidential Media Centre on the 17th, under the theme ‘Collective Path to a stable country’.

The State Minister further elaborated:

“The country is gradually emerging from its economic downturn, but the process is not yet complete. We cannot claim that the financial burden on the people has been entirely lifted. However, considerable progress has been made in mitigating the hardships faced by the people during the preceding economic crisis. Further measures are required to alleviate these hardships.

Relevant ministries, led by President Ranil Wickremesinghe, are diligently working towards this objective. The effort must be on-going and highly efficient, requiring collective engagement. As the Minister of State overseeing this matter, it is our responsibility to further reduce the prices of essential commodities in the country.

The escalation in the cost of essential goods directly impacts the everyday lives of the people in our country. Thus, it is imperative to lower the prices of commodities to meet the public’s expectations. Recognizing this, the Ministry of Commerce is taking decisive steps to ensure the availability of essential goods at affordable prices.

Despite price reductions in many essential goods, certain traders have yet to adjust their pricing. Some items continue to be sold at higher rates. Consequently, we have instructed the officials of the Consumer Affairs Authority to initiate legal action against those responsible.

In addition to economic challenges, we are actively working to find resolutions to the ethnic issues and foster national harmony. In this context, President Wickremesinghe has convened multiple rounds of discussions with members of both the ruling and opposition parties, both inside and outside parliament, to deliberate on matters such as the 13th Amendment and related topics. These discussions are on-going, with diverse opinions being voiced. However, our commitment remains to meet the expectations of the people.

It is worth noting that President Ranil Wickremesinghe has appointed a Tamil person as the Governor of the Eastern Province for the first time. We express gratitude to the President for this significant step. The current President is particularly dedicated to addressing the concerns of the Tamil community and President Wickremesinghe’s flexibility provides an opportunity for Tamil leaders to engage in constructive dialogue to resolve our issues. This should be regarded as their shared responsibility.

We must actively involve Tamil leaders and civil society activists in discussions concerning our challenges. This process must be expedited.

It is essential to acknowledge that, within the brief period available, we have initiated numerous projects. Furthermore, we will continue implementing development initiatives, including road construction, bridge projects and improvements in agriculture and fisheries, as well as enhancing the livelihoods of our citizens. Measures have also been taken to combat unauthorized sand mining in the Eastern Province, with a focus on environmental preservation and resource conservation.”

 PMD