Colombo (LNW): The Cabinet of Ministers has approved the 2024 Budget proposals during a meeting held this (13) morning.
The 2024 Budget then will be tabled in Parliament by President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies.
By: Staff Writer
Colombo (LNW): Foreign and local companies are to be given state lands for mega agriculture projects with tax concessions in misconceived deals involving forest lands, especially forest reserves, official documents divulged.
The government is planning to hand over thousands of acres of forest lands to several local and foreign companies under a new cabinet decision misinterpreting its contents with the connivance of top officials. Several environmentalists and local community activists complained.
According to the circular, any allocation of forest lands for development activities requires the approval of a special review board which has not been followed since the circular is invalidated.
Cabinet of Ministers approved a proposal submitted by the ministry of wildlife and forest resources conservation on January 23, 2023 to resolve problems pertaining to forests coming under the purview of forest conservation department and wild life conservation department.
According to the cabinet approval, problems of villagers residing and cultivating land allotments in reserve forests for a long period will be solved subject to stipulated conditions.
Under the first phase of this initiative land allotments in Jaffna, Vavuniya, Mulaithivu Kilinochchi, Mannar, Trincomalee, Ampara, Anuradhapura, Polonnaruwa and Monaragala Districts are to be released to present occupants.
These community settlements were initiated by the then government after the end of North East war under its resettlement programme for displaced villagers.
Further the security forces have forcibly taken over forest lands in those areas to implement the national physical plan.
The ministry of wildlife and forest resources conservation making use of this situation is now releasing forest reserve lands for mega agri development projects of foreign and local companies, several leading environmentalists said.
150 acres in Madu road Jaffna forest which was declared as a forest reserve on October10 2012 under the gazette notification No 1779/15 had been released for development activities by the ministry by issuing gazette notification No 2344/16.
In addition 29000 acres of land in Mulaithivu forest reserve, 25,000 acres in Wattegama -Kebiliththa forest reserve in the Monaragala District and over 100 acres in Rajawake forest are to be released by the ministry to private investors.
Thailand based Sutech Engineering company has invested US$ 400 million for its subsidiary Sutech Sugar Industries Pvt Ltd to implement green field sugar development project taking over 600 acres forest land for sugar factory in the Vavuniya District belonging to forest conservation department with the approval of the cabinet on June 26 2023.
This company has given 7000 acres of forest land in the area for sugar cultivation under the same cabinet approval.
Plans are under way to hand over 62,500 forest land for the Bibila sugar cultivation project in Monaragala, Badulla and Ampara Districts to IMS Holdings Pvt Ltd in accordance with the cabinet approval of February14, 2017.
By: Staff Writer
Colombo (LNW): Sri Lanka Railways is set to be restructured considering different models including turning it to authority or managing the train service under a public private partnership.
The aim is to provide a better convenient and efficient transport service for commuters in accordance with the government’s IMF dictated policy of state institution reforms.
This A-grade Government department has to be transformed into a profitable venture by streamlining operations and enhancing efficiency to ensure a better service delivery, Transport Minister Bandula Gunawardena said.
He noted that maintaining it a state entity is a burden for the country and the only option to make the Department a profitable venture was to transform Sri Lanka Railways into an Authority.
Mr Gunawardena said the country should get rid of official bureaucracy of the department and introduce a system which operates under a board of directors.
It will ensure job security of employees numbering around 17,000 and their pension would be safe guarded, he elaborated adding that the railway department restructure should be similar to partially privatisation like Sri Lanka Ports Authority (SLPA) and Sri Lanka Telecom.
The minister said that if the Railways Department is not transformed into an authority (statutory body), it will have to be sold to a private investor.
An expert committee has been appointed to obtain necessary recommendations for a complete restructure and improvement of Sri Lanka Railway’s service.
The chairman of committee appointed to put forward proposals for the restructuring of Sri Lanka Railways K.D.S. Ruwanchandra said an interim report will be sent to the Cabinet of ministers soon The committee will consider proposals to cover the operating loss of Sri Lanka Railways and ways and means of providing an efficient service.
The committee also comprises a group of university lecturers Mr.Ruwanchandra said adding that special attention will be paid to their opinions when preparing proposals of restructuring.
The committee will put forward proposals to tackle the operating loss of Sri Lanka Railways and provide an efficient service.
Although the revenue of the Railways Department was Rs. 2.6 billion in 2022, Rs.7.7 billion was spent on overtime allowances and salaries with a loss of Rs.12.43 billion, finance ministry data shows.
It has earned an income of Rs 2.7 billion in 2021 incurring a loss of Rs.10 billion. The salary and overtime payment alone was Rs.9.3 billion during the year.
The department of railways has been running at substantial losses in the 10 year period of 2010-2020 accumulating a loss of Rs 331 billion.
It maintains 1561km of rail tracks and operates 72 locomotives, 78 power sets, 565 carriages and the signaling network. With a workforce of 17,634.
The Railway Department holds around 14,000 acres of land in the island, with 9,000 acres allocated to yards and tracks.
Colombo (LNW): A landslide in the Gavaranhena area of Balangoda on Sunday (12) has resulted in the reported disappearance of at least four individuals from the same family.
The Police are actively investigating to determine if they are trapped or if they had managed to evacuate.
The missing family includes a father, mother, and two daughters, and their current whereabouts remain unconfirmed, according to reports.
The landslide has caused damage to two houses, prompting authorities to take precautionary measures to evacuate residents in the area to safer locations.
Colombo (LNW): Trains on the Main Line are facing delays due to a breakdown this morning (13).
A commuter train traveling towards Colombo Fort and Panadura experienced a breakdown near the Bothale railway station, according to reports.
The train had departed from Rambukkana railway station at 5:57 a.m.
The malfunctioning train is currently delayed by nearly two hours and will only be operational up to Colombo Fort railway station.
By: Staff Writer
Colombo (LNW): At the time of the national budget 2024 presentation in parliament Sri Lanka is now knocking at the door of a balance of payments crisis and for all intents and purposes seems to have passed the point where the problem cannot be solved by only raising policy interest rates, several eminent economists and rating agencies said.
Moody’s Investors Service said that Pakistan and Sri Lanka are among the South Asian countries that are most vulnerable to balance of payments (BoP) crises.
The international credit ratings agency issued the report citing low exports and the lack of foreign direct investment.
Moody’s said India was the least vulnerable country to BoP crises due to its larger and more diversified export sector, adding that New Delhi also had better macroeconomic policy management in place.
In its latest report, Moody’s said, “Bangladesh, Pakistan and Sri Lanka have much weaker infrastructure compared with India, contributing to high costs to trade,” adding that the South Asian nations’ market access to other countries is limited on account of them having fewer trade agreements.
Sri Lanka’s balance of payments slipped deeper into deficit in September 2023, after recording a marginal gap in the month before, official data showed.
Sri Lanka balance of payments surplus steadily increased to 2,078 million US dollars up to July 2023 but fell in August.
In September the surplus fell to 1,863 million dollars indicating a deficit of 171 million US dollars.
Analysts have warned that IMF programs tend to fail in the second year as rate cuts are enforced with money printed through open market operations, on the claim that inflation is low, as private credit picks up, even as budget deficits fall in real or nominal terms.
The rupee then slides, energy and food prices go up, the entire reform program is discredited and the government in power is ousted.
Sri Lanka’s private credit is still weak, but in August the central bank injected large volumes of money on a net basis in August by cutting the reserve ratio.
If the printed money is used to give credit or buy Treasury bills which are then spent by their recipients on imports, the new money will create a BOP deficit as the exchange rate is defended.
If the exchange rate is not defended the currency will fall and the reforms are discredited. Exchange rate instability also discourages private inflows and may then trigger flight of any capital that has come.
Colombo (LNW): The Sri Lanka Rupee (LKR) indicates a slight appreciation against the US Dollar today (13) in comparison to last week’s Friday, at leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 321.67 from Rs. 321.92, and the selling price to Rs. 331.23 from Rs. 333.14.
At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 320.49 from Rs. 320.99, and the selling price to Rs. 331.50 from Rs. 332.
At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 322 and price Rs. 332, respectively.
Colombo (LNW): President Ranil Wickremesinghe is set to present the 2024 Budget to Parliament today (13), marking the country’s 78th Budget Speech.
The Second Reading of the Appropriation Bill for the fiscal year 2024 will occur at 12 noon on November 13, with the subsequent debate scheduled from November 14 to 21, excluding Sundays.
The vote for the Second Reading is planned for November 21 at 6.00 p.m.
Additionally, the committee stage debate will span from November 22 to December 13, excluding Sundays, with the vote on the Third Reading scheduled for 6.00 p.m. on December 13, 2023.
The estimated expenditure for this year’s budget is Rs. 7,326 billion, with Rs. 5,334 billion allocated for recurrent expenditure and Rs. 1,225 billion for capital expenditure.
The President discussed the budget’s final stage preparation at his official residence on November 12.
This marks his first Budget presentation following the interim budget presented after assuming the presidency.
On 28 and 29 October 2023, the Consulate General of Sri Lanka in Milan hosted the first ever ‘Sri Lankan Festival in Milan’ at Parco Sempione, Milan, under the patronage of the Municipal Council of Milan and in collaboration with the Sri Lanka Tourism Promotion Bureau. The event was a celebration of Sri Lankan heritage and culture, in the heart of Milan.
The festival welcomed a large number of visitors, including tour operators, media, professionals and general public, both Italians as well as Sri Lankan expatriates.
At the core of the Sri Lankan Festival was the mission to bridge cultures, promote the country among wider Italian community and create a platform for what the country has to offer to the world. The festival shared the unique beauty and diversity of Sri Lanka with the visitors in a platter that offered an assortment of colors, sounds and flavors, offering a glimpse into the rich Sri Lankan culture and heritage.
The two-day festival’s highlights included cultural performances ranging from traditional dance to music; culinary delights featuring authentic Sri Lankan dishes; an art and photography exhibition, demonstration of traditional Ayurveda and wellness treatments, Ceylon Tea tasting, handicraft, batik and handloom craft section, display of Sri Lankan precious and semi-precious gem stones; saree parade and fashion show, an enchanting traditional manor house furnished with antique Sri Lankan furniture, Sri Lanka tourism pavilion, a photo booth, exhibition and sale of Sri Lankan products; question and answer sessions with giveaways; and video presentations reflecting diverse aspects of the country.
In addition, an Italian author and an illustrator who published the book ‘Il ponte de Adamo’ (The bridge of Adam) on Sri Lanka in Italian language, shared their fond experiences in Sri Lanka.
An exhibition consisting of paintings of an Italian illustrator and a renowned Sri Lankan artist and photographs of an award-winning Sri Lankan photographer residing in Italy created a tapestry of splendors of Sri Lanka.
Five Sri Lankan Restaurants based in Milan demonstrated live cooking of a variety of Sri Lankan savory street food and sweet delights while the Consulate General office in Milan organized a stall for Ceylon Tea tasting and sampling with the courtesy of different private brands. Ceylon Artisan Tea Association also availed of this event to promote their unique products. Sri Lankan origin children born in Italy were briefing the visitors on the difference between Ceylon cinnamon and Cassia and of other spices Sri Lanka produces at the kiosk designated for spices.
Municipal Councillor Luca Costamagna, President of the Cultural Commission of the Municipal Council of Milan attended as the Guest of Honour of this two-day festival, while a number of officials from the municipal council of Milan and the Diplomatic Corp in Milan attended the inaugural ceremony. Addressing the gathering, Councillor Costamagna stated that this was a great opportunity to discover the unique aspects of Sri Lankan culture and stated that he looks forward to work together towards further strengthening cultural cooperation between the two countries. Consul General of Sri Lanka in Milan Dilani Weerakoon emphasized that ‘Sri Lankans have proven over and over again we are a resilient nation. Sri Lanka is not a country grappled with challenges only, but a land of harmonious contrasts, a land that glows with its beauty within diversities, a land with so much potential.’
The Consulate General of Sri Lanka anticipates to host this event annually and make it an integral part of the cultural calendar of Milan.
