By: Staff writer

Colombo (LNW): The Government has taken a very ambitious course of action for the country’s economic transformation by divesting stakes in nonstrategic assets and minority stakes in strategic assets of state owned business enterprises, finance ministry sources disclosed.   

Observing the 52 State-Owned Enterprises (SOEs) monitored by the Ministry of Finance (MoF), an aggregate profit has come down in most of these enterprises including Ceylon Petroleum Corporation, Sri Lankan Airlines Ltd. Sri Lanka Transport Board, Sri Lanka Telecom PLC (SLT) and Lanka Hospitals PLC etc.  

Sri Lanka is no stranger to divesting SOEs. Divestment of public enterprises were incorporated into the state policy in 1987 with an aim of reducing the fiscal burden, and improving the efficiency and profitability of entities. This led to extensive SOE reforms being carried out between 1989 and 2002 with partial and full divestiture of 84 enterprises.

Divestiture can bring in investors with the capacity to invest in expansions. For example, Hilton has much potential for further development but owing to financial constraints, the government is unable to pursue such developments.

The Hyatt project is also another example that requires significant investments to reach completion, which the Government is not in a position to undertake.

The Secretary to the Treasury has informed the Board of Directors of Sri Lanka Telecom PLC (SLT) and Lanka Hospitals PLC that the Cabinet of Ministers has granted approval in principle for the divestment of the stakes held by the Treasury Secretary in the two companies.

Accordingly, the Secretary to the Treasury has informed the Board of Directors of SLT and Lanka Hospitals that the Cabinet of Ministers has granted its approval in principle for the divestment of the stake held by the Treasury Secretary in the respective companies.

The companies have announced that they have received the approval of the Cabinet of Ministers to sell the shares owned by the government in Sri Lanka Telecom PLC and Lanka Hospital PLC, which are two companies listed in the Colombo Stock Exchange (CSE), as per the policy decision of the government.

Notifying the Colombo Stock Exchange of this decision, Sri Lanka Telecom says that the divestiture will be implemented in the near future by the State-Owned Enterprise Restructuring Unit established  under the Ministry of Finance, Economic Stabilization and National Policy, subject to following the due process. Meanwhile, Ceylon Hospital PLC has also issued an announcement stating the same.

The Treasury holds a 49.50% stake of the issued share capital of Sri Lanka Telecom PLC.

Meanwhile, a 51.34% stake of the share capital of Lanka Hospital PLC is held by the Sri Lanka Insurance Corporation, representing the Government of Sri Lanka.

Ideal method that can be followed is to offer a significant stake through a competitive tender process or a bidding process conducted on a special board of the Colombo Stock Exchange (CSE) among shortlisted parties.

Balance can be offered through an Initial Public Offering (IPO) allowing members of the general public to become part owners of a SOE.

• The IMF Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 2.286 billion (about US$3 billion) to support Sri Lanka’s economic policies and reforms.
• The objectives of the EFF-supported program are to restore macroeconomic stability and debt sustainability, safeguarding financial stability, and stepping up structural reforms to unlock Sri Lanka’s growth potential. All program measures are mindful of the need to protect the most vulnerable and improving governance.
• Close collaboration between Sri Lanka and all its creditors will be critical to expedite a debt treatment that will restore debt sustainability consistent with program parameters.

Washington, DC: The Executive Board of the International Monetary Fund (IMF) approved today a 48‑month extended arrangement under the Extended Fund Facility (EFF) with an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion).

Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis. The economy is facing significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead up to the crisis, further aggravated by a series of external shocks.

The EFF-supported program aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential. The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 254 million (about US$333 million) and catalyze financial support from other development partners.

Following the Executive Board discussion on Sri Lanka, Ms. Kristalina Georgieva, Managing Director, issued the following statement:

“Sri Lanka has been facing tremendous economic and social challenges with a severe recession amid high inflation, depleted reserves, an unsustainable public debt, and heightened financial sector vulnerabilities. Institutions and governance frameworks require deep reforms. For Sri Lanka to overcome the crisis, swift and timely implementation of the EFF-supported program with strong ownership for the reforms is critical.

“Ambitious revenue-based fiscal consolidation is necessary for restoring fiscal and debt sustainability while protecting the poor and vulnerable. In this regard, the momentum of ongoing progressive tax reforms should be maintained, and social safety nets should be strengthened and better targeted to the poor. For the fiscal adjustments to be successful, sustained fiscal institutional reforms on tax administration, public financial and expenditure management, and energy pricing are critical.

“Having obtained specific and credible financing assurances from major official bilateral creditors, it is now important for the authorities and creditors to make swift progress towards restoring debt sustainability consistent with the IMF-supported program. The authorities’ commitments to transparently achieve a debt resolution, consistent with the program parameters and equitable burden sharing among creditors in a timely fashion, are welcome.

“Sri Lanka should stay committed to the multi-pronged disinflation strategy to safeguard the credibility of its inflation targeting regime. As the market regains confidence, the authorities’ recent introduction of greater exchange rate flexibility will help to rebuild the reserve buffer.

“Maintaining a sound and adequately capitalized banking system is important. Implementing a bank recapitalization plan and strengthening financial supervision and crisis management framework are crucial to ensure financial sector stability.

“The ongoing efforts to tackle corruption should continue, including revamping anti-corruption legislation. A more comprehensive anti-corruption reform agenda should be guided by the ongoing IMF governance diagnostic mission that conducts an assessment of Sri Lanka’s anti-corruption and governance framework. The authorities should step up growth-enhancing structural reforms with technical assistance support from development partners.”

IMF

By: Isuru Parakrama

Kataragama (LNW): Nearly one-fourths of school children in Kataragama are currently following ‘DP Coding School’, the innovative computer learning platform introduced by DP Education co-founded by Dhammika Perera and Priscilla Perera, established at the Computer Centre of the historical Ruhunu Kataragama Dewalaya in Kataragama, enrolling about 1000 students.

DP Coding School provides free online learning opportunities for those interested in pursuing their careers in computer programming from the scratch, aiming the opening of doorways for people of all ages, particularly children, for career opportunities in the field of information technology, including, but not limited to, Web Developer, Full-Stack Web Developer, Software Application Developer, Computer Programmer and Data Scientist. Those pursuing a further path beyond DP Coding School are also eligible to apply for ‘Trainee Full Stack Developer Course’ jointly offered by the University of Moratuwa.

DP Coding School modules are taught in Sinhala.

The Computer Centre at the Ruhunu Kataragama Dewalaya was established during the Covid-19 pandemic with an installation of 10 computers amidst the falling education of school children. The DP Coding School outlet was established later, as Mr. Dhammika Perera himself had paid a visit to the Dewalaya in October 2022 and learned the necessity to establish one based on a request by the Custodian in Charge of the Dewalaya. Accordingly, the Computer Centre is currently operational outstandingly with 47 computers installed.

The DP Coding School outlet in Kataragama immediately turned out to be a jackpot for children of low income families in the area, making a significant change in their lives. As a result, many underprivileged children are now capable of mastering computer languages, mobile apps and even the development of computer games.

Below is a simple demonstration of the change currently in establishment thanks to DP Coding School.

Previous reports:

01. The IMF Executive Board approves the EFF proposed for Sri Lanka to address the macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential, with an amount of about US$3 billion, and approves the immediate disbursement of US$ 333 million: IMF MD Kristalina Georgieva urges a more comprehensive anti-corruption reform agenda guided by the IMF that conducts and assessment of the island nation’s anti-corruption and governance framework.

02. The WFP’s latest Household Food Security Survey for February 2023 reveals food insecurity in Sri Lankan households continues to remain at concerning levels amidst the economic crisis; stresses 32 per cent of Sri Lankan households suffers from food insecurity, whilst price volatility remains concerned; adds however that Sri Lankan markets remain functional and currently are of a wide range of products, adequate physical availability of essential foods and a resilient supply chain.

03. Three FR petitions files demanding annulment of ex President Gotabaya Rajapaksa’s pardon on ex MP Duminda Silva, who was convicted and pending death row over the murder of Bharatha Lakshman Premachandra, taken up for hearing at the Supreme Court: Hearing of petitions adjourned till March 30, 2023.

04. The ‘18 Hairpin Bends’ section of the Kandy – Mahiyanganaya Road closed for traffic from 8 pm to 5 am daily until due notice: Motorists urged to use alternate routes during this period: Earlier, the second hairpin bend was temporarily closed due to an earth slip and a rock slip, but the stretch of road was reopened for traffic after clearing the debris.

05. The Appeal Court orders the extension of the interim injunction issued preventing the hearing of a case filed against SDIG Deshabandu Tennakoon until March 28, 2023: The plaint against the SDIG had been filed at the Colombo Fort Magistrate Court in connection with the large sum of money found inside the President’s House during the July 09 uprising by the ‘Aragalaya’ protesters.

06. The Agriculture Ministry says measures will be taken to provide TSP fertiliser free of charge from March 20, 2023 to all 1.2 million paddy farmers in Sri Lanka, after three cultivation seasons: The stock of 36,000 MT of TSP fertiliser imported from Egypt official handed over to the Ministry by the US.

07. The Treasury Secretary informs Sri Lanka Telecom PLC and Lanka Hospitals PLC that the Cabinet has granted approval in principle for the divestment of the stakes held by the Treasury Secretary: The Treasury holds a 49.5 per cent stake of the share capital of SLT, and 51.34 per cent stake of the share capital of Lanka Hospitals is held by the Sri Lanka Insurance Corporation, representing the government.

08. Leader of Pivithuru Hela Urumaya MP Udaya Gammanpila says the government contradicting its own statement that money cannot be ‘printed’ for the holding of the LG Polls due to IMF conditions has printed Rs. 113.5 billion on a single day, March 15; stresses the CBSL under the tenure of current governor Weerasinghe has printed a staggering Rs. 867 billion since he took office, making it questionable as to why Rs. 9 billion cannot be ‘printed’ for the LG Polls.

09. The CBSL asks the Attorney General to initiate criminal proceedings against three ‘pyramid’ related schemes for violating Section 83C of the Banking Act: These schemes run by ‘Fast3cycle International Pvt. Ltd.’, ‘Sport Chain App, Sport Chain ZS Society in Sri Lanka’, and ‘Onmax DT’.

10. Appeals filed by the defendants pending death row over the murder of schoolgirl Sivaloganathan Vidya in 2015, seeking acquittal from the sentences fixed for hearing at the Supreme Court on October 06, 2023: The defendants convicted by the Jaffna High Court for abduction, acquaintance sexual assault and murder of the minor.

By: Isuru Parakrama

Colombo (LNW): The Executive Board of the International Monetary Fund (IMF) today (20) has approved a 48-month extended arrangement under the proposed Extended Fund Facility (EFF), with an amount of about US$3 billion, to address Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential, the IMF said in a statement.

The IMF Executive Board’s decision, accordingly, will enable an immediate disbursement of about US$ 333 million, and catalyse financial support from other development partners, the statement added.

Below is the statement by IMF Managing Director Kristalina Georgieva on the approved EFF:

“Sri Lanka has been facing tremendous economic and social challenges with a severe recession amid high inflation, depleted reserves, an unsustainable public debt, and heightened financial sector vulnerabilities. Institutions and governance frameworks require deep reforms. For Sri Lanka to overcome the crisis, swift and timely implementation of the EFF-supported programme with strong ownership for the reforms is critical.

“Ambitious revenue-based fiscal consolidation is necessary for restoring fiscal and debt sustainability while protecting the poor and vulnerable. In this regard, the momentum of ongoing progressive tax reforms should be maintained, and social safety nets should be strengthened and better targeted to the poor. For the fiscal adjustments to be successful, sustained fiscal institutional reforms on tax administration, public financial and expenditure management, and energy pricing are critical.

“Having obtained specific and credible financing assurances from major official bilateral creditors, it is now important for the authorities and creditors make swift progress towards restoring debt sustainability consistent with the IMF-supported programme. The authorities’ commitments to transparently achieve a debt resolution, consistent with the program parameters and equitable burden sharing among creditors in a timely fashion, are welcome.

“Sri Lanka should stay committed to the multi-pronged disinflation strategy to safeguard the credibility of its inflation targeting regime. As the market regains confidence, the authorities’ recent introduction of greater exchange rate flexibility will help to rebuild the reserve buffer.

“Maintaining a sound and adequately capitalised banking system is important. Implementing a bank recapitalisation plan and strengthening financial supervision and crisis management framework are crucial to ensure financial sector stability.

“The ongoing efforts to tackle corruption should continue, including revamping anti-corruption legislation. A more comprehensive anti-corruption reform agenda should be guided by the ongoing IMF governance diagnostic mission that conducts an assessment of Sri Lanka’s anti-corruption and governance framework. The authorities should step up growth-enhancing structural reforms with technical assistance support from development partners.”

By: Isuru Parakrama

Colombo (LNW): The Executive Board of the International Monetary Fund (IMF) has approved Sri Lanka’s programme under the Extended Fund Facility (EFF), allowing the country to access financing of up to US$ 7 billion from the IMF, international financial institutions and multilateral organisations.

Marking the historic milestone, the government of Sri Lanka seeks to restore macroeconomic stability and achieve debt sustainability.

Commending the IMF approval President Ranil Wickremesinghe delivered the following statement:

“In the 75 years of Sri Lanka’s independence, there has never been a more critical period for our economic future. Our official creditors have declared their support following continuous and positive engagements over the last few months, and we are pleased that the IMF Executive Board approved our program, enabling Sri Lanka to access up to US$ 7 billion in funding from the IMF and IFIs. From the very start, we committed to full transparency in all our discussions with financial institutions and with our creditors. I express my gratitude to the IMF and our international partners for their support as we look to get the economy back on track for the long term through prudent fiscal management and our ambitious reform agenda.

Since taking office last July, it has been my priority to stabilise Sri Lanka’s economy and achieve sustainable levels of debt. To do so, we have taken some tough decisions, but we did so with a commitment to widening our social safety nets, protecting the vulnerable, rooting out corruption and ensuring we can grow an inclusive and internationally attractive economy. The IMF programme is critical to achieving this vision for our country, and we are committed to successfully completing the IMF programme and achieving debt sustainability. We will continue to engage with all our creditors, and I encourage both our bilateral and commercial creditors to strengthen and foster coordination in the context of our forthcoming engagement. The IMF program will also be imperative to improving Sri Lanka’s standing in and access to international capital markets, and it will demonstrate that Sri Lanka is once again a country attractive to talent, investors and tourists.”

Colombo (LNW): Our earlier report on certain bad experiences by the Visa applicants were not limited to VFS Office for Japanese Visa. We just reported a first hand experience encountered at the Japanese Visa Centre. Simultaneously there were similar stories of bad experiences at other offices too. We simply do not want our own people looking down on our own Sri Lankans ridiculing and harassing them sarcastically.

However to be fair by the VFS Japanese Centre. We experienced a drastic change of attitudes by the staff there when the same party went there to collect their Passports after processing the Visa. Starting from the security, Reception and the Lady who was manning the passport Collection counter was extremely courteous and well mannered. Even the other counters who accepting Visa applications were  observed,  working with a smile and politeness. This is exactly what we expect from a servicing agency. 

Gone are the rudeness, arrogance and sarcasm, we were quite shocked to experience the contrast attitude with in a weeks time. Maybe overall staff may have got a good shelling and a proper training & instructions to serve in the service industry.

We too are quite happy to know that there are proper Visa centres operating in our island with a human touch so any Sri Lankan could walk in there to obtain their Visa requirements. 

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