Colombo (LNW): The Government exceeded the primary balance target for the first quarter of 2023 by achieving a surplus of Rs. 48.3 billion over the deficit target of Rs. 56 billion mainly due to the enhanced revenue collection.
Sri Lanka’s Budget deficit in the first five months of this year had crossed the Rs. 1 trillion mark whilst rise in expenditure outpaced that of revenue.
According to the latest data released by the Central Bank, during January to May Government revenue and grants increased by 38% to Rs. 1.12 trillion as against Rs. 812.7 billion in the corresponding period of last year.
Total expenditure and net lending increased by 47% to Rs. 2.13 trillion in comparison to Rs. 1.45 trillion a year ago.
The resultant overall budget deficit rose to Rs. 1.01 trillion as against Rs. 636.7 billion in the first five months of last year.
CBSL also said domestic financing increased to Rs. 1 trillion as against Rs. 742.7 billion. Foreign financing recorded a net repayment of Rs. 63.3 billion in comparison to Rs. 106 billion.
Outstanding central Government debt decreased to Rs. 26.8 trillion by end April from Rs. 27.5 trillion as at end 2022. Total outstanding domestic debt amounted to Rs. 15.6 trillion while the rupee value of total outstanding foreign debt amounted to Rs. 11.1 trillion.
However The Government exceeded the primary balance target for the first quarter of 2023 by achieving a surplus of Rs. 48.3 billion over the deficit target of Rs. 56 billion mainly due to the enhanced revenue collection.
A series of bold policy measures were introduced from June 2022 to make the tax structure progressive and broad-based.
Policy measures such as the removal of preferential Corporate Income Tax (CIT) rates andexemptions, re-introduction of mandatory Advanced Personal Income Tax (APIT),withholding taxes and increasing Personal Income Tax rates (PIT) and Value Added Tax (VAT) rates, mainly contributed to the improved revenue performance in the first four months of 2023
Total government revenue in the first four months of 2023 increased by 30.0 percent to Rs. 820.1 billion from Rs. 630.9 billion in the same period of 2022, realizing 24.1 percent of Rs. 3,408.0 billion annual estimate benefiting from the mobilization of tax revenue.
Tax revenue increased by a significant 36.6 percent to Rs. 742.6 billion in the first four months of 2023 achieving 23.7 percent of Rs. 3,130.0 billion annual estimate for 2023.
Government expenditure increased by 42.4 percent to Rs. 1,645.6 billion in the first four months of 2023, compared to Rs. 1,155.2 billion in the same period of 2022.
Recurrent expenditure increased by 46.0 percent to Rs. 1,485.0 billion, while capital expenditure and net lending increased by 16.0 percent to Rs. 160.6 billion.
The upswing in expenditure was mainly due to the increased spending on interest payments, pensions and welfare programs.
Colombo (LNW): Creating automobile history, Ideal Motors will be launching Sri Lanka’s first electric car, ‘Moksha’ to the market in November 2023.
The mentor behind this historic project, Chairman Ideal Motors Nalain Welgama said that ‘Ideal Moksha’ is fitted with a 22.46 kWh Lithium battery that provides a range of up to 200 kilometres on a single charge by plugging into a 15-amp domestic charger overnight.
“We are also proud to announce that this battery too is made in Sri Lanka increasing the total value addition of the car to over 45%,” he said. The warranty available on the battery will be 5 years. Our island-wide aftermarket network will ensure
Moksha electric car battery being assembled in Sri Lanka.Moksha electric car battery being assembled in Sri Lanka. an unmatched level of service.”
Classified as a four-wheeled electric quadricycle, with a sitting capacity for four the ‘Ideal Moksha’ is to be priced under Rs. 4.5 million.
For the first time in history, this will also reverse Sri Lanka’s image as a motor vehicle import destination to an export destination opening up high FOREX earning business to the country.
“The current import ban on motor vehicles also encouraged us to invest more in this project and it proves the decision by the government was correct as it not only saved dollar drain for car imports but also accelerated a local home-grown car assembly industry.
“One does not think only of the local sales as we have already received export inquiries from Africa for ‘Ideal Moksha’ and exports would happen from the end of 2024. Our investment in R&D, ground-up preparations etc has cost us around Rs.100 million so far including the moulds.”Welgama said.
“We have built a separate brand new 30,000 Sq ft facility next to the Mahindra plant in Welipenna for this operation.
He said Our moksha will be lined out in the new manufacturing plant by ideal motors. This facility cost us Rs 250 million. The working capital requirements shall be Rs 500 million. We are looking at a total investment of Rs. 1 billion for our people’s electric car built locally,”
Drawing inspiration from the iconic Austin Mini Moke that took the world by storm, the Ideal Moksha is geared to be a game changer in the Sri Lankan market and the most practical solution in the current technology transition phase towards a sustainable, carbon-neutral future.
Sri Lanka’s first home-grown fully-electric car will be a fully air-conditioned vehicle with a push start and alloy wheels.
In addition, it will also have a 7-inch multimedia touchscreen display that comes with Apple CarPlay and Android Auto compatibility where the passengers could access information, favourite music, and maps.
“The Ideal Morksha is completely homegrown! We learnt the art of car making from our joint assembly plant in Welipenna from auto major Mahindra of India.”
An alarming scarcity of insulin within state hospitals has compelled diabetes patients who rely on government-provided insulin to turn to private pharmacies for their medical needs.
According to Dr. Chamal Wijesinghe, spokesperson for the Government Medical Officers Association, this situation has prompted a distressing reality where only a fraction of these patients possess the financial capability to purchase insulin vials from private sources.
Dr. Wijesinghe underscored the potentially grave health implications of this predicament, with a significant number of patients facing the imminent risk of deteriorating health conditions due to the lack of accessible insulin.
Speaker Mahinda Yapa Abeywardena notified the parliament today (August 08) that the Supreme Court has ruled against the constitutionality of Private Member’s Bills aimed at modifying the Pradeshiya Sabhas Act, Urban Councils Ordinance, and Municipal Councils Ordinance.
The Supreme Court’s decision underscores that the aforementioned Bills require parliamentary passage through a special majority and subsequent endorsement in a referendum. This verdict prompts a significant reevaluation of these legislative proposals.
Colombo (LNW): When the Sports Minister is criticized, he calls the critics as mere citizens who lack a passion for sports and are not even worthy to keep in the country.
What he doesn’t understand is that the people who stand behind him wherever he goes, will not falling in to the pit and however, after the Minister’s downfall, they will position themselves on the edge of the groove and exploit him for their own benefits. According to the minister, those who point out potential pitfalls ahead are considered traitors in his view. Now the Minister is spending the time to understand things with various examples.
The Minister made numerous statements regarding the football ban, and there were also supporters who cheered him on. But what happened? Eventually, the Minister had to issue a new gazette acknowledging that he had not acted in accordance with the regulations of the International Football Federation and had based his actions on an unconstitutional basis.
A similar situation is emerging in relation to the game of rugby. In opposition to the ban imposed on the Sri Lanka Rugby under a section of the Sports Act, the court ruled in favor of the SLR, allowing it to continue its operations and allowed a fresh election to be conducted. Accordingly, the Ministry should have withdrawn the case up to the facts necessary to withdraw it, but after delaying it, it was removing and again using the same clause and imposed a rugby ban. Later, a new type of interim committee known as the Rugby Stabilization Committee was appointed.
An international ban was also imposed on rugby, similar to what happened with football. Also National Olympic Committee conveyed to the international community they would not accept the Stabilization Committee. As a consequence, Rugby faced an international ban due to the situation. The reason behind the international ban on rugby is that it, like football, is perceived as a victim of political manipulation on the international consideration.
The courts carefully examined this situation and gave a decision and impose political censorship that the minister could not intervene in the independence of rugby.
With this situation, the efforts of the Rugby administration, which had been striving for a long time to achieve the dream of Asia Rugby medals, were severely undermined and ruined. But the international federation has agreed to open a way for Sri Lankan rugby to fulfill that goal through the National Olympic Committee, taking into consideration the judgment.
The Stabilization Committee, seen as an extension of the Minister’s political agenda, failed to devise plans for the rugby club to pursue Asian medals and uphold the sport’s integrity. Now, the Court of Appeal has asserted that if the committee’s powers are revoked, they will resort to the Supreme Court to prolong the decision-making process. This means that the country’s dream of Asian medals will be lost.
The international federation imposed the ban because the Minister intervened and prevented the rugby federations of the country from functioning in accordance with the constitution. Instead, the minister appointed as Stabilization Committee, which led to the loss of international recognition and resulted in the ban on the country’s rugby activities.
The only thing that has been done apart from doing the same old thing in a new gazette using the same decision is to appoint a Stabilization Committee, withdrawing a decision made through several sections of the Sports Act. It is also done by the Minister.
According to the international community, this matter is also included in the political pressures that cause Sri Lanka not to be recognized. Therefore, the Stabilization Committee, which is a part of the same political party, has hindered the necessary freedom of the Rugby administration, which was appointed with the allowed of the court. Also, it should be resolved urgently to prevent participation in the Asian tournament.
Furthermore, it is concerning that the committee appointed by the Minister consists of individuals who were involved in attempting to dissolve the rugby administration. These individuals had submitted a petition claiming that the election, which was conducted under the court’s guidance, was conducted incorrectly.
Then there is no need to tell again how political and independent these committees are. In the current situation, the autonomy of rugby is severely compromised due to the involvement of political influences and the actions of appointed committees.
To start the National Rugby League matches and the players of sports clubs the opportunity to sign contracts and acquire sponsorships has hindered. Despite the court’s order to the sports Minister and the heads of ministries and development departments not to interfere with the officially appointed rugby committee, the interim committee, which represents the same system, is destroying rugby by wielding its power granted by the challenged political authority instead of supporting the sports clubs.
The Sri Lankan politician is a character who works in an idiotic guise, thinking of his pride before the country. It is widely known that Sri Lanka’s rugby has been under the influence of the Rajapaksa family for almost two decades. Instead of prioritizing decisions for the development of rugby or the country’s rugby in general, it appeared that Rajapaksa’s sons’ desires influenced how the game was played. Additionally, rugby seemed to operate under diplomatic protection whenever the President and First Lady attended matches.
But blessing it all, those who were in the rugger chairs worked hard for a rugger game that was not the country’s pride.
So what happened in those situations?
The inclusion of foreigners in the Sri Lanka rugby team resulted under penalty of £50,000, which is still being paid today.
Due to implementing various programs without income and sponsors, inviting the likes of Mahinda Rajapaksa to them, and the time spent they putting on shows, Sri Lanka Rugby is stuck in a huge debt burden.
The situation with these matters had changed when Namal Rajapaksa became Minister. Although the person who came to the position has done some of his organizational tasks legally, Namal was able to make it clear through history that the game of rugby cannot be done arbitrarily according to his own wishes except for the sake of rugby.
Based on this situation, an individual who supports the Sports Minister’s arbitrary actions and has gained favor with the Asian President was appointed to the rugby administration, alongside the Asia President and the Sports Minister. This non-acceptance of the Rugby Federation has been a major factor contributing to the divide between politics and rugby in Sri Lanka, as well as between Asia Rugby and Sri Lankan Rugby.
Despite changes in Ministers, the situation remained largely the same after Roshan Ranasinghe was appointed as a member, representing that same political culture influenced by the Rajapaksa theory. The newly appointed Minister had a stronger inferiority complex than the high dimension of former Minister, so the desire to stand out as the chief of the game was strong. The Minister was not satisfied with the Rugby administration, which was carrying out its work without going to stand at the Minister’s door to meet the unnecessarily.
As a second step, the advance of the first objection begins from there. Many of the Stabilization Committee signed the petition to the Minister In the election protest led for that. Through them, it is clear that there is a different game here than rugby.
There are no investigations into the ban on the behavior of the Asia chairman. No charge sheets. But the of Sri Lanka Rugby President has been banned. It is the same in Sri Lanka. The reason for the ban, which is now almost said to the sports Minister, is the ban of the Asia president.
Why is he banned?
Involved in financial fraud? A sexual bribe..?
No tournaments held?
None of this. There is no such thing in Asia President. There is no reason in saying the same to the Minister of Sri Lanka. The reason for the ban is that the Asia president is ready to interfere in Sri Lankan sports affairs.
At that time, it was a blaming during a personal phone call.
If a person who fought for the independence of the country’s sports administration is sacked or banned, he should not be a Minister who loves the country. This is the reason why the Minister does not say that. Therefore, the Minister does not care if plays Asia rugger or not. The Minister has also casually agreed to the involvement of the Asian president in improperly influencing a sports association in the country.
So there are no politicians in Sri Lanka to save the people who stand for this country or to protect those people. It is difficult for the president to say anything to Roshan Ranasinghe. The current Rugby administration is not satisfied for the Rajapaksas either.
Sometimes, if they were in power, things would have happened like the judges who were leaving work were asked to come home for friendship and were given higher responsibilities in the court. But due to the judiciary, it has been possible to oppose the desire of politics to those who have interfered rugby. However, anyone can do to delay the court decisions by various arguments and destroy the opportunity for Sri Lanka to go for an Asia medal.
What is clear, however, is that the dissolution of the rugby done by the Minister has not been widely accepted by the court so far. The fact that ministerial work is political has also been accepted by the international community. It is also banned because it is wrong and not acceptable. On the one side of the decision taken for the ban, the standing committee that is close to it is not correct. Not only the international community but also the National Olympic Committee does not accept it . In such a situation, the only thing that the Stabilization Committee can do is to come to the Court of Appeal and close the possibility for Sri Lanka to participate in the Asia trophy.
The sports Minister has no idea about this. Rather than taking the political value of the fact that a medal came from rugby during his time, it is important and necessary for the Minister to blame the administration for those losses one day from the divinity of sports law that nothing can be done without his blessing.
The intelligence of the Minister has also been numbed to the extent that he does not realize that acquisitions are more valuable than losses. The Rajapaksas have no such feelings either and they have no shame either. Making the same mistake, they are doing what is important to them, not to succeed in what is important to the country.
The scope of the disaster is widening to the extent that the preventions made by betting on such in competencies are now not only knocking Asia medals, but also into the pockets of rugby players at the national level.
Against this, the most serious thing that can happen if Sri Lankan rugby is actively maintained by engaging in administrative and financial affairs with the political blessing of an administration that does not accept the international and the country’s National Olympic Committee is the prolongation of the international ban. And will so it becomes even more powerful to the point where it cannot be removed.
It is not easy for the sports Minister to issue a gazette to correct the facts related to his stupid work after being placed in such a position and ruining the country’s rugby. Even if the court has directed not to interfere, it can be to go to such a gazette or go to the court to inform about the omissions and take permission.
Then it may be necessary to inquire whether or not there has been a protest by the officially appointed members of the Sri Lanka rugby administration, which is being considered legally by the international rugby administration.
It is important if the Standing Committee can stay away from preventing Sri Lankan rugby players from getting a great opportunity by saying that they will go to the Supreme Court. If everyone around this event feels that it is more important to have a conscience who thinks it is important to confirm before the conscience of the public who is the greatest, we will see a Sri Lankan rugby team in China.
“Who won” at the last moment after participating in the tournament without proper training and losing? One day when there is a post- investigation about the collapse of Sri Lankan rugby, you may have to ask yourself in front of a mirror. It is important to keep that in mind for today’s interrupting of rugby and those who support it in any way.
11 th of August is more important in this way. If the standing committee, which is part of the Minister’s decision to treat the international federation as a political influence based on personal interests for the sake of a non-existent power, asks the court to allow the official rugby to do the necessary work in relation to the Asia tournament while keeping the objection, it will go to the Supreme Court to do what it is trying to do. More than this will be a great work for the moment.
It will also be a great opportunity to send a message to the community that they have a love for rugby.
Colombo (LNW): One of the world’s largest accounting bodies has pledged to strengthen the organisation’s expansion plans in Sri Lanka.
CPA Australia Global CEO Andrew Hunter and employees from CPA Australia’s Asia-Pacific offices visited Colombo from 2 to 3 August and met with President Ranil Wickremesinghe, business leaders, Government officials and local members.
CPA Australia also announced that it has teamed up with local firm HLB Lanka Business Advisory to establish a new liaison presence in Sri Lanka.
To celebrate CPA Australia’s announcement, an official reception was held in Colombo attended by the State Minister of Finance Shehan Semasinghe and Australian High Commissioner to Sri Lanka Paul Stephens.
“The Sri Lankan economy is poised for growth. A strong and vibrant accounting and finance profession will help Sri Lanka reach its full economic potential. We want to contribute to this success in Sri Lanka,” Hunter said.
“CPA Australia has more than 400 members working in Sri Lanka’s finance and accounting industry. There is a huge pool of promising young talent who are committed to pursuing an accounting or finance career.
By expanding our presence in Sri Lanka, we are supporting the country’s economic success and improving career prospects for local professionals.”
This announcement is the next step in CPA Australia’s ongoing support for Sri Lanka’s accounting profession. CPA Australia has previously established membership pathway agreements with The Institute of Chartered Accountants of Sri Lanka and The Institute of Certified Management Accountants of Sri Lanka.
“This is a significant progress for CPA Australia’s presence in South Asia. We are indebted to our member, Mr Dinuk Hettiarachchi FCPA (Aust.), for his strong support in growing CPA Australia’s presence in Sri Lanka,” added Hunter.
CPA Australia is one of the largest professional accounting bodies in the world, with more than 172,000 members in over 100 countries and regions, including more than 400 members in Sri Lanka.
Its core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest.
It engages with Governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes.
Tragedy struck as a fire ignited within a chemical factory situated on Veedi Mawatha in Kandana this morning (August 08), claiming the life of one individual.
According to information received from Ada Derana’s correspondent, diligent endeavors are currently in progress to extinguish the flames and bring the situation under control.
Colombo (LNW):The Governor of the Central Bank of Iran (CBI) stressed Sunday that the development of monetary and banking relations between Iran and Sri Lanka is necessary for the expansion of bilateral economic relations.
The CBI chief Mohammad Reza Farzin held a meeting with the visiting Sri Lanka foreign minister Ali Sabry in Tehran on Sunday.
In the meeting, Farzin referred to the important role of the Asian Clearing Union (ACU) in the development of trade relations between the two countries, adding that, “The ACU is a very suitable platform for the development of trade and monetary relations between the two countries, and this platform can also be used to settle payments.”
The CBI chief proposed the formation of a specialized and technical banking and monetary working group between the central banks of the two countries,
He explained that, “The formation of this working group can play an important role in speeding up and facilitating banking cooperation. Meanwhile, it can also be used to develop monetary and banking relations as well as cooperation and economic exchanges.”
Farzin announced the CBI approval of the agreements made between Sri Lanka and other economic institutions in Iran, adding that, “If the goal of trade development is on the agenda, the central banks of the two countries should guide monetary platforms and monetary exchanges.”
He pointed out that Iran has been able to establish stable trade relations with its business partners even though it has been under unilateral US sanctions without causing problems for its trade partners.
“Iran is now fully prepared to cooperate with Sri Lanka in order to expand monetary and trade relations within the ACU framework,” the CBI chief asserted.
Ali Sadry, for his part, pointed to the long-standing and continuous relations between the two countries and announced his readiness to increase the level of trade between the two countries.
He said that, “The establishment of a bilateral banking committee between Iran and Sri Lanka to follow up on bilateral issues and facilitate commercial affairs will definitely lead to the development of bilateral cooperation.”
The top Sri Lankan diplomat went on to say that, “The Central Bank of Sri Lanka is following up on the measures within the ACU framework.”
He also appreciated Iran’s support to Sri Lanka in the International Monetary Fund (IMF). ACU currently has nine members including India, Iran, and Pakistan.
The ACU was established in 1974 as a payment arrangement through which participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis, according to ACU’s official website.
Ambassador Sri Lanka to the Kingdom of Bahrain H.M.G.R.R.K. Wijeratne Mendis called on His Royal Highness Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister of Bahrain at Gudaibiya Palace on 03August 2023.
His Royal Highness highlighted the strength of Bahrain-Sri Lanka relations and the importance of furthering cooperation to the benefit of both countries and achieving mutual goals. His Royal Highness wished the Ambassador success in performing her diplomatic duties.
Ambassador Wijeratne Mendis conveyed thanks for the opportunity granted to meet with His Royal Highness, noting HRH the Crown Prince and Prime Minister’s commitment to advancing bilateral relations to meet common aspirations.
Ambassador further extended her appreciation on behalf of the Government of Sri Lanka to the Government of Bahrain for the kind assistance provided to the Sri Lankan community living and working in Bahrain during Covid 19 pandemic ensuring their safety and security.
The Personal Representative of His Majesty the King His Highness Shaikh Abdulla bin Hamad Al Khalifa, and the Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa also attended the meeting.
Monetary policy transmission to the real economy in Sri Lanka is still incomplete, the governor of the country’s central bank, Dr. Nandalal Weerasinghe, said at a LSEG FX Community Event on Monday (Aug 7).
Weerasinghe said he would like to see private sector interest rates come down further and at a faster pace, adding that the domestic debt restructuring is the most important focus for the debt-laden country in the near-term.
“We would firstly like to see yields drop in line with policy rates and, from there, decline further. We are waiting to see this reaction from markets,” he said.
“Given the downward inflation trajectory we see room to further loosen policy rates.”
Hit by a severe foreign exchange shortage last year, Sri Lanka’s economy crumpled, pushing the central bank to raise interest rates to record levels to counter rampant inflation and currency pressure.
The country secured a US$2.9 billion rescue package from the International Monetary Fund (IMF) in March.
In the last two months Sri Lanka has slashed policy rates by 450 basis points, signalling a focus on growth after the crisis-hit economy contracted by 7.8 per cent last year.
Sri Lanka is on track to post a stronger performance this year than the 3 per cent contraction projected by the IMF, Weerasinghe said.
“Sri Lanka has managed to do better than expected before and we are hopeful that Sri Lanka will once again perform better than the projections.”
Over the past five months Sri Lanka’s economy has stabilised with inflation dwindling to 6.3 per cent in July, from a high of 69 per cent last September, and on track to hit the central bank’s target band of 4 per cent – 6 per cent.
Sri Lanka’s economic stability is also dependent on the upcoming budget, which is likely to be presented to parliament in November.
“Sri Lanka has to ensure that fiscal consolidation and other measures outlined in the IMF program are taken forward in a strong budget. That is very important for Sri Lanka’s recovery to be sustainable,” Weerasinghe said.
