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President says funds allocated for 100 projects for the last decade lost due to the Public Sector engaging in business

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Colombo (LNW): President Ranil Wickremesinghe said that due to the public sector engaging in business activities, the money that was available for the construction of 100 projects similar to the Mahaweli during the past decades, has been destroyed.

He noted that in the future, the public sector will stop engaging in business and open it to the private sector to create a free and productive economy.

President Wickremesinghe mentioned this at the 71st commemoration ceremony of the late Prime Minister D.S. Senanayake at Independence Square today (22).

Recalling that Mr. D.S. Senanayake’s vision was to create a free economy, the President said that business should be done by the private sector and that the country could be developed with the tax revenue obtained from them.

However, due to the nationalization in 1956, the Government started engaging in business and that is why the tax revenue was inadequate for the development of the country, the President pointed out.

He stated that the country has distanced itself from Mr. D.S. Senanayake’s vision, but following his vision, Singapore has become a developed country today and said that despite our politicians dreaming of making Sri Lanka a Singapore, the destruction caused to Sri Lanka in the last 75 years due to the decisions of certain political movements is immense.

Therefore, the President further mentioned that Senanayake’s legacy should be carried forward to build a strong and powerful Sri Lanka.

President Wickremesinghe also laid floral tributes at the statue of the late D. S. Senanayake.

The Chief Incumbent of the Kollupitiya Polwatta Sri Dharmakeerthi Monastery Venerable Dr. Bandarawela Wimaladharma Thera delivered a special sermon.

Member of Parliament Vajira Abeywardena, Senior Advisor to the President on National Security and Chief of Staff to the President Mr Sagala Ratnayake, Senior Advisor to the President on Climate Change Mr Ruwan Wijayawardena, Former Speaker Mr Karu Jayasuriya, Former Ministers Ravi Karunanayake, Rohitha Bogollagama, Karunasena Kodithuvakku, Rukman Senanayake, former Colombo Mayor Rosy Senanayake, former Provincial Councilor Shantini Kongahage, Army Commander Lt. Gen. Vikum Liyanage and several others attended the event.

NWSDB employees launch strike action

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By: Isuru Parakrama

Colombo (LNW): Trade unions responding to the National Water Supply and Drainage Board (NWSDB) have agreed to launch a strike action today (23) based on several concerns including the the PAYE tax and the slashing of incentives.

Accordingly, all employees attached to the outstations of the NWSDB will be launching a strike action from 9 am to 5 pm today, said Convener of the NWSDB Joint Trade Union Alliance Eng. Upali Ratnayake.

Meanwhile, a demonstration will also be held in front of the Water Supply Ministry today at 12 pm noon, he added.

As a result, all customer services of the NWSDB will cease from functioning today and the cashiers will also be closed.

Special discussion to make final decision on LG Polls today

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By: Isuru Parakrama

Colombo (LNW): The Election Commission today (23) is set to hold a special discussion in making a final decision on whether the Local Government Election will be held on April 25, 2023.

Accordingly, the secretaries of all political parties will be called in for the meeting today, and their opinions on the non-issuance of funds for the LG Polls and the ballot papers not being printed will be collected.

Based on the observations, a final decision on whether the LG Polls should be held on April 25, 2023 as declared, or should it be postponed, and for how long will be made thereafter.

UK DCTS provides more benefits for Sri Lanka’s export sector

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The new scheme Developing Countries Trading Scheme of UK (DCTS) has been designed to grow free and fair trade with 65 countries, including Sri Lanka.

The official delegation from the Department for International Trade in the UK visited the Sri Lanka Export Development Board (EDB) on 16 March to discuss the opportunities for Sri Lanka’s export sector under Developing Countries Trading Scheme (DCTS) to be launched by the Government of UK.

Trade Preferences Policy Manager for Sri Lanka Sofie Kinsey, Overseas Trade Policy Advisor for South Asia Fabian Hartwell, and British High Commission in Colombo Deputy Head of Trade and Investment Asanthi Fernando participated in the discussions at the EDB with the objective of identifying potential export sectors for Sri Lanka to expand in the UK market utilizing the UK DCTS.

Currently more than 6,000 product lines from Sri Lanka can enjoy zero duty access for the UK market under Enhanced Frame Work preference scheme and another 156 product lines also will be added to the same list under UK DCTS. Being a beneficiary country under UK DCTS, Sri Lanka will become more competitive to further expand in the UK market.

EDB Chairman and Chief Executive Suresh de Mel emphasized the importance of UK DCTS since the UK is the second largest export destination for Sri Lanka with a total export value of $ 966.04 million and a total trade value of $ 1,170 million in 2022. Sri Lanka’s main export products to the UK in 2022 were apparel, engineering products, coconut-based products and rubber-based products.

It was identified that some sectors from Sri Lanka like tea, rubber gloves, animal feed, ship building/boat building, gherkins, kithul treacle and rice flour have a potential to expand in the UK market under new DCTS.

The EDB requested assistance from the UK Government to promote the potential product sectors in the UK market with the purpose of enhancing the utilization of UK DCTS.

The British team assured their cooperation for Sri Lanka to strengthen the presence of value added products in the UK market by enhancing the utilization of the new preferential arrangement.

The UK Government held a series of events in Colombo for their new trade preferences scheme – the Developing Country Trading Scheme (DCTS), which will launch this year.

British High Commissioner Sarah Hulton OBE said: The UK’s new Developing Countries Trading Scheme provides Sri Lankan and UK businesses with a fresh opportunity to diversify and deepen supply chains and reduce the cost of exporting to the UK.

UK officials showcased high potential value chains and products that can benefit from the new scheme. This was based on research into UK retailers’ and consumers’ buying considerations, as well as insights from Sri Lankan producers, trade programs and policymakers.

While Sri Lanka exports numerous high value products to the UK including textiles, tea and rubber, there has been a steady decline in trade volumes between Sri Lanka and the UK since 2018.

Under UK trade preferences, Sri Lankan exports will benefit from generous tariff cuts and new products will be brought into scope, facilitating access to the UK market for Sri Lankan businesses across a wide range of industries.

Korea supports to boost vocational training and education in Sri Lanka

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South Korea has agreed to provide assistance to enhance vocational training opportunities in Sri Lanka.

The South Korean Government will also support Sri Lanka to promote employment generation and investment opportunities.

There is ample scope for investment opportunities in Sri Lanka due to its strategic location in the region officials said adding that the government has requested the Korean Embassy to encourage leading Korean companies to explore investment opportunities in the island.

Nearly 22,000 Sri Lankans are employed in South Korea and they are happily contributing to the workforce, and steps would be taken to fulfill the request made to increase the quota provided for the employment of Sri Lankans in South Korea.

Cabinet of ministers clears to ink MoU with Korean Human Resource Development Service to improve vocational training in a two-year program

Korea has come forward to assist Sri Lanka to boost vocational training and education in a two-year program.

The Cabinet of Ministers at its meeting on Monday approved entering into a Memorandum of Understanding (MoU) with the Korean Human Resource Development Service and Vocational Training Authority to boost vocational training and education in Sri Lanka.

The move follows the Attorney General’s clearance and the approval of the External Affairs Ministry and the Department of Foreign Resources received.

The Human Resources Development Service implemented under the Department of Labour and Employment in Korea has agreed to provide a grant of 2.15 billion South Korean Won to upgrade and boost the capacity of the National Vocational Training Institute in Niyagama.

This institute is operating under the Vocational Training Authority (VTA),” a statement comprising Weekly Cabinet Decisions issued by the Government Information Department noted.

The proposed project is scheduled to be implemented in a two-year program from 2023. The proposal to this effect submitted by the Education Minister Susil Premajayantha was approved by the Cabinet of Ministers at its meeting on Monday.

The Korean Government has provided assistance for ongoing projects with more than US$ 30 million to uplift the education sector of Sri Lanka.

Korean Ambassador Santhush highlighted that the Korea International Cooperation Agency (KOICA) is funding several ongoing projects that are carried out in the education sector.

Among these development projects, establishment of a teacher training system for technology stream, enhancing early academic performance and modernization of construction technology training programs aimed to strengthen the educational facilities not only for students but also teachers, parents and other stakeholders as well.

The Korean Government will continue to foster the educational talents of Sri Lankan youth by assisting development projects to improve educational participation and vocational training in Sri Lanka.

So far, Korea has channeled more than US$ 30 million to Sri Lanka to ensure inclusive development through quality education and improve the education system of Sri Lanka.

Among other avenues of Official Development Assistance (ODA), the Korean Government is paying attention to improving the quality of education, expanding inclusiveness, and intensifying vocational training in Sri Lanka.

The Korea International Cooperation Agency (KOICA) has consistently funded and supported the Ministry of Education to promote rural education.

Last year, KOICA together with UNICEF provided a grant of US$600,000 to assist the critical response to Covid-19 in the education sector of Sri Lanka.

In addition, the Korean Government continues to extend assistance to the Korean Institute of Technical Training (K Tec) in Orugodawatta, Colombo which was established with support of the Korean Economic Development Cooperation Fund (EDCF) by Korea Exim bank.

Colombo Port City permits seven banks to operate and complete of 64 plots.

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The Colombo Port City Economic Commission (CPCEC) has achieved much progress thus far of Sri Lanka’s most ambitious venture including licences issued for seven banks to set up shop and technical certificates of completion of 64 of the 74 plots.

CPCEC is the Single Window Investment Facilitator authorized to assist investors, businesses, and residents in conducting their activities seamlessly and efficiently in Port City Colombo.

Issuing its semi-annual progress report for FY 2022 from July to December 2022, CPCEC said agreements have been signed between the Commission and the Registrar General of Companies and Controller General of Immigration and Emigration in order to streamline services offered to Authorized Persons.

It also said technical Certificates of completion for 64 out of the 74 plots of the Port City Colombo SEZ have been received by the Commission. Preliminary designs for the Marina Development and Villa Project have been submitted by two investors, with several more plots in the final stages of discussion for lease.

In terms of sector progress, CPCEC said the Minister of Finance issued licences under the Colombo Port City Economic Commission Act to four banks during the first half of 2022. The Commission has since received requests from three more banks during 2022.

Additionally, 10 Financial and Banking Regulations were also drafted under Sections 44 and Sections 45 of the Colombo Port City Economic Commission Act No. 11 of 2021 and are awaiting review with the Monetary Board of Sri Lanka.

The Sri Lanka Police opened a Post on-site for visitor protection, with water access control and lifeguard services being handed to the Sri Lanka Navy. CCTV networks were also installed in public areas.

In addition to an internationally-reputed hospital and school, the Commission has identified the need for a world-class university within Port City Colombo and modified the Master Plan accordingly.

With the retail mall infrastructure complete, the CPCEC said commencement of the interior work has begun. The mall will showcase premium merchandise, with an array of cuisine options and entertainment, and is set to commence operations by Q2 of 2023.

Sri Lanka to regain Japanese investments for innovative projects

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In the wake of Sri Lanka President Ranil Wickremesinghe’s attempts to restart Japan-funded projects including the light rail transit project cancelled by the previous administration, the kingdom of the rising sun is again keen to explore investment opportunities in the pearl of the Indian ocean.

A group of Japanese investors now in Sri Lanka conveyed interest in investing in diverse sectors such as medical equipment manufacturing, pharmaceutical, travel and tourism industry especially cultural tourism, the hotel industry, property development and real estate

They expressed these views when they held a discussion with Investment Promotion State Minister Dilum Amunugama and Board of Investment top officials in Colombo recently.

Colombo light rail transit (LRT) project is the first of its kind to be developed in Colombo, the capital city of Sri Lanka. Construction of the first phase of the project is estimated to cost US$2.2 billion,

Chinese firm Seoyoung Engineering undertook the feasibility study for the project estimated to cost $6 billon and was approved by the government in October 2018, scheduled to start in 2020 and commercial operations were expected to start in 2025.

Officially launched in July 2019, the project will be implemented by the Government of Sri Lanka’s Ministry of Megapolis and Western Development (MMWD) under a public-private partnership.

Construction of the first phase of the project is estimated to cost $2.2 bn and is scheduled to start in 2020. Commercial operations are expected to start in 2025.

The investors had a productive discussion with Investment Promotion State Minister Dilum Amunugama, BOI Director General Renuka M Weerakone and other officials on key investment opportunities in Sri Lanka.

Speaking at the meeting, the State Minister opined “Sri Lanka has come a long way in making reforms and progress since the economic crisis.

The approved IMF program will definitely help enhance investor confidence, creating a conducive ecosystem to do business, thereby attracting much-needed FDIs to the country,”

Also, the State Minister explained to the delegates about the special investment policy, which is in progress to ease doing business where the BOI would be empowered to further facilitate investors. Further, discussions are underway to grant tax benefits to investors in future.

Moreover, he invited the investors to invest in five new industrial and privately managed zones to be established in the Northern Province, the Trincomalee district and other selected areas.

Meanwhile, DG Renuka M Weerakone answering the queries of delegates, stated “Investor Facilitation Center (IFC) will be a single window to conduct businesses where each investor will get an individual official to look into matters until the investor commences operation in the country,”

“Sri Lanka is making great progress as a country and has strong economic sectors and companies that are strongly looking forward to establishing investment partnerships with countries like Japan.

In this context, the BOI is looking forward to increasing and developing cooperation with Japan through novel investment projects,” she added.

Sri Lanka Original Narrative Summary: 23/03

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  1. President Ranil Wickremasinghe says the IMF EFF will restore Sri Lanka’s international recognition, ensure the country is not bankrupt & help banks to regain international recognition: also says it will create opportunities for low interest credit, restore foreign investor confidence & lay the foundation for a strong new economy.
  2. President Ranil Wickremesinghe tables the IMF agreement in Parliament: urges Opposition to unite and disregard political differences to assist in carrying out the IMF agreement, which will aid in the development of Sri Lanka’s economy.
  3. President Ranil Wickremasinghe says the Govt has agreed with IMF to reduce the primary deficit to 2.3% of GDP by 2025 & increase revenue to 14% of GDP by 2026: standard corporate income tax rate to be raised to 30% & sectoral tax holidays to be eliminated: PAYE tax rate to be raised from 12% to 15% & the tax exemption limit to be reduced from Rs 300 mn to Rs 80 mn.
  4. SJB MP & Economic Guru Dr Harsha Silva says he is happy about the IMF EFF: asserts he is not hypocritical to not appreciate it: Silva had previously strongly supported the sovereign debt default as well.
  5. SJB MP and Financial expert Eran Wickremaratne says some are of the opinion that all problems will vanish into thin air just because the IMF loan is approved: asserts the IMF loan is like getting our necks into the noose first so that they would feed us thereafter: queries from where the social protection for the people is forthcoming.
  6. Epidemiology Acting Chief Dr Samitha Ginige reassures the public that there is no danger of a listeriosis spread in the island: urges the public to refrain from creating undue fear regarding the bacterial infection.
  7. IMF predicts that restructuring the public sector debt and bad loans in the private sector would cost around 6% of the 2022 GDP for Sri Lanka’s banking and finance sector: states this would require a capital infusion equal to that amount in order to cover the bad loans.
  8. Rupee appreciates against the USD: buying rate at Rs.312.61 & selling rate at Rs.330.16: Gold prices also reduce by around Rs.10,000 with a 22-karat sovereign being quoted at Rs.152,000.
  9. Colombo University Economics Senior Lecturer Dr Shanuka Senarath says SL is currently in an interval in hell: asserts this is just the tip of the iceberg and that all the problems are still under the carpet.
  10. Colombo Grand Mosque says the Muslims in Sri Lanka will begin the month of Ramadan fasting from dawn on Friday, March 24.

Strategic Study Tour to Sri Lanka by the 46th Higher Air Command Course

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1.               A delegation of 19 Indian Armed Forces officers led by Group Captain Yunus Syed Muzaffar from the 46th Indian Higher Air Command Course conducted at College of Air Warfare, Secunderabad arrived in Sri Lanka as part of Strategic Study Tour from 20-24 March 2023. The visit is focused on interactions with senior defence hierarchy as well as visits to military establishments and industrial organizations to broaden the vision of the trainees.

2.     The delegation started their visit by paying homage to the martyrs of Indian Peace Keeping Force at the memorial in Battaramulla followed by interactions with High Commissioner of India, H.E Gopal Baglay, Chief of Defence Staff, General Shavendra Silva and Air Marshal S.K Pathirana, Commander of Sri Lanka Air Force. The delegation is also scheduled to visit Galle, Hambantota, Diyatalawa, Kandy and Katunayake and interact with various agencies to get deeper insights about Sri Lanka.

3.     India’s ‘Neighbourhood First’ Policy seeks to promote institutional linkages between the Armed Forces of India and Sri Lanka.  Such Study Tours help strengthen the existing bonds of camaraderie and enhance people to people connect to achieve regional peace, security and stability.

Colombo

21 March 2023

High Commissioner Moragoda presents a copy of the Sinhala translation of the Holy Quran to the Ambassador of Bahrain

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Continuing his efforts to promote dialogue with Heads of Mission of Islamic countries concurrently accredited to Sri Lanka from New Delhi, High Commissioner of Sri Lanka to India Milinda Moragoda presented a copy of the Sinhala translation of the Holy Quran to the Ambassador of Bahrain to India Abdul Rahman bin Mohammed AlGaoud  on  21 March 2023.

Earlier in February, High Commissioner Moragoda had presented copies of the Sinhala translation of the Holy Quran to the Ambassador of Morocco in India.

This Sinhala translation of the Holy Quran, published by the All Ceylon Jamiyyathul Ulama (ACJU) of Sri Lanka, was presented to the Bahraini Ambassador at the Embassy of Bahrain in New Delhi.

Previously, the High Commission had presented copies of the Sinhala Quran to the Jama Masjid of Delhi and the Jamiat Ulama-i-Hind (Council of Muslim Theologians of India).

In keeping with the “Integrated Country Strategy for Sri Lanka Diplomatic Missions in India”, the policy roadmap of High Commissioner Moragoda, the High Commission of Sri Lanka in New Delhi has been promoting dialogue with all major religions in India.

High Commission of Sri Lanka

New Delhi

22 March 2023