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.
Sri Lanka seeks Indian aid for further development of transport sector
SL Food crisis to worsen amid poor agri production, price spikes and economic crisis
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
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
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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
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.
‘Crafting Ceylon’ launched under President’s patronage to open foreign markets for the handicrafts industry
‘Crafting Ceylon’ launched under President’s patronage to open foreign markets for the handicrafts industry
• Awards presented to 100 who displayed excellence in craftsmanship
The inauguration of the “Crafting Ceylon” export oriented design development program organized by the National Craft Council with the aim of providing foreign market opportunities for the products of Sri Lankan handicraftsmen, was held (23) at the Bandaranaike International Conference Hall premises under the patronage of President Ranil Wickremesinghe.
The National Craft Council has initiated this program under the guidance of the Ministry of Industry and the State Ministry of Small and Medium Enterprise Development.
Handicraft artisans scattered all over the island were gathered at the district level and an awareness workshop on handicrafts to be produced for export was also organized in parallel with this event.
There, among the 2,214 designs prepared by the artisans representing 25 districts, 546 designs of 100 exceptional artisans were selected by the national judging panel, and the award was symbolically given to the selected handicraft artisans under the patronage of President Ranil Wickramasinghe.
Apart from this, the President awarded two special commemorative gifts to two institutions that have performed a unique mission for the Handicrafts Center and then went on to observe the selected designs.
President Ranil Wickremesinghe, who joined as a special guest to encourage handicraftsmen in Sri Lanka, was given a special commemorative gift under the leadership of Minister of Plantation and Industries Ramesh Pathirana and Minister of State for Small and Medium Enterprise Development Prasanna Ranaweera.
The cultural shows presented by the students of Janakala Kendraya, adding color to this export-oriented design development program, attracted the special attention of invited guests from home and abroad.
A business meeting and public exhibition will be held today (23rd) and tomorrow (24th) at the Bandaranaike Memorial International Conference Hall, Safire Banquet Room, with the participation of local and foreign buyers, importers, architects and experts of the hotel industry.
Ports, Shipping and Aviation Minister Nimal Siripala de Silva, Wildlife and Forest Conservation Minister Pavitra Wanniarachchi, Industry Ministry Secretary Tilaka Jayasundara, National Crafts Council Chairman Sampath Arahepola and many dignitaries including foreign ambassadors attended the event.
Private MP’s Bill proposing decriminalisation of same-sex conduct gazetted
By: Isuru Parakrama
Colombo (LNW): The Private Member’s Bill proposing the decriminalisation of same-sex conduct has been gazetted.
The bill presented by Ruling Party MP Premnath C. Dolawatte proposes amendments to the Penal Code thereby eliminating criminalisation on the basis of sexual orientation.
The bill, if enacted, will decriminalise same-sex conduct in Sri Lanka.
For decades, sections 365 / 365A of the Penal Code have been interpreted as provisions sanctioning the persecution of LGBTIQ people.
NSB launches South Asia’s first SSID Solution on Blockchain powered by FlexID
National Savings Bank (NSB), Sri Lanka’s premier financial services provider and 3rd largest bank in the country, marked a milestone by unveiling South Asia’s first Self Sovereign Identity (SSID) solution on blockchain for its customers, in partnership with PayMedia and Bridge Advisory and Consulting, powered by FlexID.
FlexID, a layer 2 network blockchain solution has reimagined a protocol for the issuance, storage and sharing of verified digital identity credentials in a fully decentralized, user managed network environment, built on the Algorand Blockchain.
The solution was facilitated by Bridge Advisory and Consulting, the authorized partner for FlexID in Sri Lanka and emerging markets in Southeast Asia.
The future of digital identity is evolving rapidly due to the adoption rate of SSID solutions which offer users the ability to share their digital credentials securely with multiple service providers such as financial institutions, healthcare providers and educational institutions.
FlexID Director/COO Sanjay Mendis said: “Our focus is to provide a solution to bank the unbanked population of the world, which stands at over 2.1 billion. We are excited to work with NSB, PayMedia and Bridge to launch the first SSID solution in South Asia, in Sri Lanka.”
National Savings Bank CIO Dr. Amal Illesinghe said: “At NSB, we are delighted to have been the first financial institution in South Asia to implement an SSID solution that enables us to provide top of the range e-KYC services for our customers across online and offline channels.
This move is aligned with our positioning as a forward-thinking bank with our customer’s satisfaction with their banking experience at the heart of what we do.
The implementation is truly a milestone in Sri Lanka’s journey towards accelerated digitization and NSB will continue to innovate by building more capabilities through this platform
For NSB, the implementation of the SSID solution will offer a host of benefits including an enhanced digital experience for customers, cost savings, and interoperability with the latest, emerging class of web 3.0 technology products and services.
Furthermore, following the implementation of the solution, NSB will be able to maintain a singular view of its customer identities across products and services provided to them which simplifies seamless e-KYC based on-boarding and verification processes.
Bridge Advisory & Consulting Director Michael Sathasivam said: “Bridge was formed with a singular vision of assisting in the modernization and technology transformation of the private and public sectors in Sri Lanka.
The SSID solution implemented for NSB is the first in many transformative projects in our agenda, and we are looking ahead with a lot of excitement and optimism towards the impact we can create in the local landscape.”
NSB SSID implementation is one of the many projects undertaken by Bridge towards supporting this shared vision and driving a ‘new digital economy’ in Sri Lanka.
PayMedia Ltd. Founder and CEO Kanishka Weeramunda said: “Adopting blockchain technology for the first time is a ground breaking initiative that is set to transform Sri Lanka, heralding a new era of digital finance.
Through the implementation of blockchain-based digital identity, financial institutions can seamlessly and confidently authenticate users in the digital realm, effectively thwarting fraud and other security risks.
Dipped Products PLC opens automated central warehouse at Biyagama EPZ
Dipped Products PLC (DPL), a member of the Hayleys Group, recently commissioned an automated central warehouse facility at the Biyagama Export Processing Zone, to enhance its service delivery excellence to meet the critical global export demand.
The state-of-the-art new warehouse facility will enable DPL to consolidate storage facilities across its Hanwella, Kottawa and Biyagama factories, by streamlining operations, reducing transportation and logistics costs, and increasing visibility and control across DPL’s supply chain.
The extensively automated 23,000 cubic metre facility represents a new technological milestone for the company’s digitalization drive, and was commissioned by Hayleys Chairman and Chief Executive Mohan Pandithage
“Given the ongoing economic challenges, it is now more imperative than ever to strengthen Sri Lanka’s position as a vibrant export hub by developing local products to the highest global standards.
As a leading global player in the protective hand wear industry and a member of the Hayleys Group, we take pride in DPL’s continuing contributions to our nation’s development,” Dipped Products PLC Managing Director Pushpika Janadheera said.
“Our latest investments are part of our strategy to expand global reach, ensure supply chain resilience, and enhance service delivery to our key export markets. With our centralized warehousing facilities, we are also optimizing our service capacity, speed, and customer value to help secure our next wave of growth,” he added.
Equipped with a state-of-the-art US National Fire Protection Association (NFPA) compliant safety system which covers 4,200 pallet racks, the new facility provides DPL with an extensive storage capacity.
Combined with robust technologies including modern articulated truck technologies and product management systems, and an integrated data tracking system that streamlines DPL’s logistical operations, that enables systematic tracing of containers from the loading point to the pallet rack.
Moreover, the new central warehouse significantly reduces the need for internal transportation, reflecting a 30% decrease in inter-factory transport related Green House Gas (GHG) emissions.
Dipped Products Plc producing rubber gloves is seeking new export markets as demand from Western buyers falter, an official said while domestic costs are also rising after a fall in the currency Managing Director, Pushpika Janadheera said.
He said “We are in the process of expanding to the Middle East, Asia, Africa, and India. We have already started setting up the facility in the Middle East – a sales office.”
There was strong demand for exports from Asia as the US and other Western nations printed money, straining supply chains.
The supply chain delayed in turn made buyers run up inventory. The Fed and the ECB is now tightening monetary policy taking away excess demand after inflation soared and demand for many products are falling.
“The other reason is, they are releasing their excessive stocks, so the purchases are not for us,” Janadheera said.“Therefore, it has an impact whole glove industry and other industries as well.”
Sri Lanka’s export firms initially benefited as the rupee collapsed from 200 to 360 to the US dollar and wages and utility prices did not go up. However, eventually utility prices catch up. Wages also usually rise over time.