India says under its ‘Neighbourhood First’ policy it has always come forward to help debt-ridden Sri Lanka, and in the latest instance New Delhi has distributed rations in Kalmunai.

Taking to Twitter, the High Commission of India in Colombo said, “Support by @IndiainSL to needy sections continues!! Glimpses of ration distribution in Kalmunai.”

The cash-strapped country in April declared its first-ever debt default in its history as the economic crisis since independence from Britain in 1948 triggered by forex shortages sparked public protests.

The island-nation plunged into a financial crisis after the Covid-19 pandemic affected tourism, which is considered the country’s economic backbone, and remittances from citizens working abroad fell.

The war in Ukraine escalated the crisis as prices for imports, particularly fuel, rose sharply due to soaring inflation. And in such a situation, India offered its help to the debt-ridden country.

The Executive Board of the IMF is scheduled to meet on March 20 to consider Sri Lanka’s request for a bailout, and if approved, the first tranche of the facility would be released shortly.

Meanwhile, Sri Lankan President Ranil Wickremesinghe has assured the country’s official bilateral creditors of transparency, equal treatment of all creditors, and equitable burden-sharing of all restructured debt in resolving the country’s economic crisis.

The new legislation will prioritize controlling inflation and introduce an inflation target, Weerasinghe said, adding that the finance minister and the central bank would together agree on what that target should be.

Sri Lanka will also eventually set up a separate entity to raise funds to settle its sovereign debt, removing that responsibility from the central bank, once the new legislation is passed, he said.

India announced a USD 1 billion line of credit to Sri Lanka last year as part of its financial assistance to help the country deal with its economic crisis.

After an agreement to extend the line of credit was inked, Ministry of External Affairs (MEA) Spokesperson Arindam Bagchi had said India has always stood with the people of Sri Lanka and will continue to extend all possible support to the country.

A concessional credit facility of USD 1 billion was extended to the Government of Sri Lanka by the Government of India in March 2022 for supply of essential items including food, fuel, medicines, industrial raw materials.

Till date, lines of credit worth over USD 4 billion have been extended to Sri Lanka in diverse sectors including supply of essential items, petroleum, fertilisers, development of railways, infrastructure, defence sector and renewable energy, the statement said.

Uber Eats, Sri Lanka’s most popular food and grocery delivery platform brought on board 100 SL marketing fraternity steps up efforts in fixing the country’s falling electric cycles on its platform.

The e-cycles launched as ‘Voltage Edition’ are manufactured by Lumala, the country’s largest cycle manufacturer, and have been especially designed for deliveries.

They have a range of up to 100 kilometers and top speed of up to 30 kilometres per hour. Uber Eats was the first platform to introduce cycle deliveries in Sri Lanka last year.

The e-cycles can cover longer distances than regular bicycles and are easier to maintain than traditional motorbikes.

The cycle battery charges in 4 hours: this makes delivery downtime minimum and reduces expenses versus fuel costs. By making it easier to cover a bigger delivery distance radius with lesser effort, delivery partners will be able to potentially make more deliveries and earn more.

The initiative is a step forward towards Uber Eats’ global vision of moving all trips to sustainable mobility by 2040.

The announcement was made at an event recently where Uber Eats sponsored e-cycles worth Rs 42 million for 100 most engaged delivery partners. 90 of these delivery partners were previously using petrol-powered motorbikes while the other 10 were using regular bicycles.

The company will also facilitate a 30% discount on the purchase of Lumala e-cycles and 15% discount on spare parts for delivery partners on its platform.

Power & Energy Minister for Sri Lanka, Kanchana Wijesekera, graced the occasion as the Chief Guest, congratulated Uber Eats on its sustainability focus and gave away the e-cycles to select delivery partners.

He was joined by the Guest of Honour, Julie J. Cheng, US ambassador to Sri Lanka; along with Mike Orgill, Senior Director, Public Policy & Government Relations, Asia Pacific Region at Uber; and, Pivithuru Kodikara, Interim General Manager, Uber Eats Sri Lanka, among others.

Commenting at the event, Minister Kanchana Wijesekera, said, “Technology-led platforms led a paradigm shift by changing the way people move or order food online. Now, they should focus on another big change by promoting green mobility.

Uber Eats had introduced cycle deliveries last year to reduce fuel dependency for delivery partners during the economic crisis. Today, cycle deliveries account for 10 per cent of total deliveries for Uber Eats in Sri Lanka. With e-cycles, Uber Eats takes the next step towards sustainable mobility and paves the way for e-bikes and e-scooters on its platform in the future.

Commenting on the announcement, Mike Orgill, Senior Director, Public Policy & Government Relations, Asia Pacific Region at Uber, said, “They are committed to Sri Lanka and are continually bringing the best that Uber Eats has to offer to the country.

Sri Lanka’s marketing fraternity is stepping up efforts to correct island nation’s image in the eyes of the international community, given the negative sentiments that are still largely prevalent.

The national body of marketers, the Sri Lanka Institute of Marketing (SLIM) has kicked off a fresh initiative that will focus on rebranding the country

he institution unveiled the inaugural ‘Brand Sri Lanka Creation Symposium’ by bringing together the experts in branding, business leaders and policy influencers, to roll out the endeavor the relatively.

Accordingly, efforts are underway to explore and pool in innovative ideas and strategies that can help crisis-struck Sri Lanka to stand out, as it looks to start a new chapter in its economic development and growth agenda.

As several attempts by diverse stakeholders in appropriately branding the island nation have failed in the recent past, SLIM expressed confidence in having what it takes to fix Sri Lanka’s image in a global context.

“Over the last many months, SLIM has been trying to create awareness about the need for such a nation branding strategy.

It was also important to understand where we actually stood in the eyes of the world and for that we had to immerse ourselves in a worldwide research,” said SLIM President Nuwan Gamage.

He added that in the next few decades, the national marketing body hopes to leverage the resources available to co-craft and assist those in power to lead a policy-led strategy that is also anchored on sustainability and solving issues that are not just relevant to Sri Lanka but the rest of the world.

This should ideally enable the world to see Sri Lanka through a new paradigm,” said Gamage. According to Nation Branding Project Chairperson Kavi Rajapaksha, the initiative aims to curate and adapt the right nation branding strategy, which would organically reinstate respect and consideration for our mother Lanka and its creations

Due to the boom in social media, the struggle of the people was very much noticed by the international community, which has led to the perception that the country is witnessing amplified poverty.

Poorly constructed comments by politicians in international fora have added to the problem, making it only difficult for the island nation to emerge from its image that has taken a massive hit.

China’s Sinopec has offered to fully finance the construction of a refinery in Hambantota, the President’s Media Division said.

During a discussion with representatives of the Sinopec Group held at the Presidential Secretariat recently President Ranil Wickremesinghe said that the Government has taken a principled decision to expand the distribution of fuel which is expected to commence shortly.

The representatives from the Sinopec Group confirmed their readiness to invest in the import, storage, distribution, and marketing of fuel to cater to Sri Lanka’s energy requirements.

The representatives informed the Sri Lankan Government that their organization has adhered to the existing system and has applied accordingly. They further conveyed their readiness to fully finance the construction of a refinery in Hambantota, which has been identified as a central energy hub by the Government.

Moreover, the representatives stated that their company is prepared to respond to future solicitations that align with the aspirations of the country.

They also presented their proposal to the President who spoke about the import, storage and distribution of petroleum products.

Expressing his views, President Ranil Wickremesinghe further stated that Sri Lanka expects rapid development following the program with the International Monetary Fund.

President Wickremesinghe also expressed his desire to promote and attract foreign businesses to operate within the country in the future.

Sri Lanka’s Hambantota International Port where China’s Sinopec is already selling very low sulfur fuel oil wholesale, will soon offer marine gas oil, strengthening its position as a marine fuels supply point, a statement said.

“In order to further develop HIP as a competitive marine bunker supply location, we entered into a strategic partnership with Sinopec Fuel Oil Lanka Limited (SFOL) to provide bunkering services as a wholesale exporter and also service vessels calling HIP as a value added service.

“Sinopec with their vast resources guarantees the supply of VLSFO in Hambantota currently and MGO in the near future, enabling the port to service all vessels plying the principal sea route in the Indian Ocean,” Hambantota International Port Group said.

Sinopec Fuel Oil Lanka Limited (SFOL) is also supplying wholesale bunkers to other bunkering companies based in Sri Lanka.

The Board of Investment (BOI) is to launch strategic plan soon to secure significantly higher levels of quality and sustainable foreign direct investment (FDI) for Sri Lanka, which would contribute substantially to the Government’s economic development agenda by creating employment opportunities, increasing export revenue and developing infrastructure.

Investment facilitation has been identified as a core stimulator under the overall investment policy, with a view to ensuring an efficient, transparent and predictable business climate, top BOI official said.

In order to streamline the foreign investment project approval process, the BOI has adopted several measures to enhance Investment facilitation including the “Investor Facilitation Centre”, which ecompasses digitalisation of the organisation to handle customs functions more effectively

Investment Promotion State Minister Dilum Amunugama has stepped up efforts to address the concerns of the investors who are seeking approval for investment projects.

This was observed at the conclusion of the second round of the Investor Facilitation Coordinating Committee Meeting chaired by Investment Promotion State Minister Amunugama recently at the Investor Facilitation Centre (IFC).

During the meeting, the issues faced by four BOI companies operating in diverse sectors such as manufacturing (circuit manufacturing) and seafood processing, were tabled and taken into consideration.

State Minister Amunugama directed the officials of pertinent line agencies to expedite the actions to swiftly resolve the pending issues of the investors.

“Meetings of this nature are opportune, which can enhance collaboration and synergy with investors, thereby boosting their confidence to explore new avenues of investment opportunities in Sri Lanka,” he added.

Meanwhile, the investors pointed out the significance of conducting review meetings of this nature to appraise stakeholder projects that are being implemented and to address concerns of the investors.

Speaking at the meeting, BOI Director-General Renuka M. Weerakone appreciated the presence of the officials of line agencies and their efforts to facilitate the investors in doing business in Sri Lanka.

“The very reason behind the idea to establish the IFC is to fast-track approvals with respect to investment projects and offer investors a one-stop shop service while imparting greater transparency in the FDI proposals and removing administrative impediments.

As such, the BOI as the catalyst and facilitator has made a giant leap forward in investor facilitation by setting up the IFC,” Weerakone stated.

These facilitation meetings are regularly conducted to get definite timelines for resolving queries related to investment projects under the chairmanship of the Investment Promotion State Minister and with the attendance of BOI officials, relevant ministry and line agency officials, concerned investors, and other stakeholders.

The first Investor Facilitation Coordinating Committee Meeting was held in January with the participation of relevant officials.

Minister of Ports, Shipping and Aviation Nimal Siripala de Silva has appointed a team to investigate air accidents in Sri Lanka’s airspace for the first time.

Accordingly, letters of appointment were given today to the first batch of Air Accidents Investigators and thereby, seven Air Accident Investigators received letters of appointment from the Minister.

This is the first time in history Sri Lankan aviation services sector Air Accident Investigators were appointed to identify accurate information, investigate the true cause of air crashes and take necessary action to prevent any future disasters in Sri Lanka’s airspace.

The Minister said that the regulatory role of the global aviation sector is performed by the International Civil Aviation Organization (ICAO) and the regulatory activities of the Sri Lankan aviation sector should follow the ICAO standards.

“For so long, there was no institution or proper program to accurately conduct investigations of accidents involving aircraft had taken place in the domestic airspace,” the Minister said.

He said after an in depth study into the matter, steps have been taken by the Civil Aviation Authority of Sri Lanka to form an independent pool of Air Accident Investigators is a giant leap forward for the elevation of the Sri Lankan aviation sector.

Letters of appointments were awarded today (16th March 2023) to the first batch of Air Accident Investigators who would take over to investigate air accidents in the Sri Lankan airspace. The function took place with the initiative of. Minister of Ports, Shipping and Aviation Nimal Siripala De Silva, at the Ministry Auditorium

This is the first time in the history Sri Lankan aviation services sector, Air Accident Investigators were appointed to identify accurate information, investigate to the true cause of air accidents and take necessary actions to prevent any future disasters in the Sri Lankan airspace.

“Therefore, immediate steps will be taken to amend the Aviation Act to establish the Aviation Accident Investigation Bureau for these activities without delay,” the Minister said.

Training for Air Accident Investigators is conducted by the Civil Aviation Authority of Sri Lanka adhered to the standards stipulated by the International Civil Aviation Organization (ICAO). The team will be operated as an independent body under the purview of the Ministry of Ports, Shipping and Aviation.

The Ministry of Ports, Shipping and Aviation emphasizes that the team operated under the Ministry at present, will be established as an Accident Investigation Bureau in future.

The US$ 400 million cross-currency SWAP” for four Sri Lanka banks extended by the International Finance Corporation (IFC) of the World Bank is only to trade cash flows in one currency with that of another IFC’s Country Manager for Sri Lanka, Alejandro Alvarez de la Campa disclosed.

He has confirmed that there’s no new Forex inflow due to the SWAP as predicted by some economic experts and state officials.

Under the facility, IFC will provide up to $400 million over one year to Commercial Bank of Ceylon (CBC), Nations Trust Bank (NTB) and Sampath Bank to help facilitate the imports of essential goods.

It has no impact on Sri Lanka Forex market or foreign reseves of the the Central Banka he pointed out.

Buit addressing the ceremony to mark the signing of IFC’s cross currency swap, the Central Bank Governor Nandalal Weerasinghe said that while the forex market had dried up at the time, the situation is now steadily improving.

“I think it’s a good time that IFC has come on board and support this facility that will provide a lot more confidence to the forex market, in addition to the progress that we have made so far,” he said.And it would he said instill more confidence into the domestic market.

Several economic experts said that Cb governor uttering nonsense as the rupee has been defended from both appreciation and depreciation via central bank’s moral suasion, which has compelled the market to trade forwards.

The rupee forwards have also been capped by the central bank from time to time, dealers have said.

These include food items, medicines and fertilizers – most of which are traded in US dollars. The facility will further support the banks financing of exports of goods and services for their clients while allowing them to make USD-denominated debt repayments.

However country head of IFC noted that IFC first conceived of using this innovative approach last year – at a time when Sri Lanka was cut off from international financial markets due to high debt, and when it was brought home to all that foreign currency was vital to help the country import the goods it needed.

The move comes as Sri Lanka continues talks with the International Monetary Fund and other countries over Sri Lanka’s debt.

The country of 22 million people has been facing its worst economic crisis in seven decades, with Sri Lanka suspending payment on most foreign debt since April last year. Simply put, the government ran out of the foreign exchange needed to cover food and fuel imports and to service its external debt.

He said supporting the private sector with critical financing will contribute to the country’s urgent need to stabilize its economy.

“It is not just about supporting businesses and helping facilitate the imports of essential goods. It’s also about the signal this sends to the market. It should send a strong message to the investor community, and hopefully spur more capital inflows – all of which would be critical for a resilient recovery of the economy,” he pointed out.

For Joon Park, IFC’s Portfolio Manager, Financial Institutions Group South Asia, delivering on the facility “wasn’t a smooth ride as it took longer than expected due to the ratings downgrade of the sovereign and the corporates.”

“But here we are today. And with this official signing, we expect this financing to enhance confidence within the investor community, attract fresh capital inflows and support a broad range of needs of families and businesses,” he said.

“Through trade lines, we also plan to support essential goods imports, and further assist our client banks with other long-term funding and advisory services in the future.”