PMD: The Chairman of the Select Committee of Parliament to study the practical problems and difficulties that have arisen in relation to enhancing the rank in the Ease of Doing Business Index in Sri Lanka and make its proposals and recommendations stated that President Ranil Wickremesinghe has provided guidance and support for the implementation of numerous programs aimed at creating a conducive environment for investment in the country.

Member of Parliament Madhura Withanage made these remarks during the Media Conference held at the Presidential Media Centre (PMD) on the theme ‘Collective path to a stable country’ July (30).

He highlighted the government’s plan to introduce a business facilitation law aimed at removing barriers for investors. Additionally, Mr. Withanage emphasized that the bureaucratic hurdles in promoting investment and business should be addressed by adopting a public service management policy rather than traditional administration methods.

He said that it is expected to bring a law to facilitate business in the country by removing the barriers for investors. Mr. Madhura Withanage, Member of Parliament, expressed his concern about Sri Lanka’s current position at the 99th place in the business facilities improvement index, which is considered a significant global indicator. He pointed out that specific recommendations, issues arising from the relationship between the public and private sectors, and outdated legal regulations are contributing factors to this situation.

Acknowledging the support of President Ranil Wickremesinghe, Mr. Withanage stated that they have been granted full freedom to address these challenges and provide necessary solutions. He also mentioned the active involvement of a presidential task force dedicated to this matter. The Parliament’s recommendations will be promptly implemented by the task force, both in the short term and with a focus on medium and long-term solutions.

The President has issued directives to promptly implement various programs aimed at streamlining business operations in the country. These programs entail the establishment of a unified system for registering companies, maintaining comprehensive data and information systems for each company, and ensuring that all relevant information is centralized in a single data system. This strategic approach seeks to enhance efficiency, transparency, and accessibility in the business environment, fostering a more conducive atmosphere for investment and economic growth.

Indeed, the implementation of a business facilitation law is crucial to achieving the desired goals and targets. Without such a legal framework, it becomes challenging to streamline and expedite business processes, hindering the overall progress.

Additionally, to attract investors and facilitate their decision-making, having a comprehensive and accessible data system is essential. Currently, Sri Lanka lacks a centralized land information bank that provides detailed insights into suitable investment opportunities in specific fields. For instance, in India, there is a land information bank that helps investors identify areas suitable for solar projects and industrial investments. Adopting a similar program in Sri Lanka would greatly benefit potential investors and enhance the country’s appeal as an investment destination. By establishing such a system, investors will have access to valuable information, enabling them to make well-informed decisions and contributing to the country’s economic growth.

The current situation where businesses and investments require approvals from multiple government agencies can lead to duplication of efforts and unnecessary delays. This bureaucratic complexity can be a significant deterrent for potential investors and hinder the ease of doing business in the country. To address this issue, it is essential to streamline and centralize the approval process, ensuring that relevant government agencies collaborate efficiently and avoid redundant procedures. Creating a unified and coordinated approach will not only expedite the approval process but also improve transparency and accountability.

The absence of an investor-friendly legal system in our country is a significant concern. While the establishment of Commercial High Courts by the previous government aimed to provide speedy solutions to commercial issues, it has not fully met the expected need, leaving investors facing challenges. Urgent measures are required to address this issue and promote a more conducive environment for investments.

The lack of conductors is a significant issue for small and medium-sized enterprises (SMEs). To address this concern, the Ministry of Finance, the Central Bank, and the Ministry of Industry are collaboratively working on a solution, as per the President’s instructions to take immediate action. Proposals have been submitted to categorize institutions with a turnover of Rs. 750 million to Rs.1 billion under small and medium-scale businesses, with approval expected in the future.

Additionally, the presence of a powerful bureaucracy is hindering the creation of a favorable investment environment. Many government officials possess an administrative mindset rather than a management mindset. To rectify this, there is a pressing need for public officials to be well-informed about entrepreneurship, and a shift towards a management-oriented public service is necessary.

A notable recent example in this context is the 2018 project from a world-renowned cable car company based in Europe. They conducted extensive studies and evaluated multiple locations in Sri Lanka before proposing the establishment of a 3.95 km cable car destination connecting Nanu Oya, Kikiliyamanna, and Gregory Lake.

In 2021, the Tourism Development Authority and the Urban Development Authority submitted a cabinet paper and obtained approval for the cable car project from 15 relevant institutions. Nepal and Dominica received this project simultaneously with Sri Lanka. Dominica received a $200 million project. Our country had received a project worth 65 million dollars. However, we have not yet granted approval for the project. In contrast, Nepal has already commenced work on the project, and Dominica approved it within six months.

During our committee’s discussion to inquire about the project, representatives from the Tourism Development Authority, Urban Development Authority, and Forest Conservation Department were present. When asked about the delay in the project, the Forest Conservation Department raised concerns about potential damage to the ecosystem. However, all other agencies present at the discussion had already granted their approval for the project.

Further investigation revealed that the construction of a pier for the cable car in case of an emergency would require 2.3 hectares of land in the Kikiliyamana area, which falls under the jurisdiction of the Forest Conservation Department. According to international standards, 0.8 hectares (220 perches) of this land are essential for construction. The remaining area would remain as common ground. However, the Forest Conservation Department proposed to provide only 58 perches and stated that the rest cannot be allocated due to technical reasons. The project officials argue that the entire 220 perches are necessary to address technical requirements adequately.

I would like to challenge the Forest Conservation Department today to provide scientific and well-founded reasons for all the concerns they have raised. It is crucial that all parties involved in this project work together to find solutions that not only ensure the preservation of our ecosystem but also allow for responsible and sustainable development. By engaging in a constructive dialogue and presenting evidence-based arguments, we can collectively arrive at an informed and balanced decision that benefits both our environment and the development of the cable car project.

Indeed, companies from Europe have set a high standard in implementing advanced technologies and maintaining their reputation for excellence. As a nation, it is crucial for us to learn from such examples and ensure that we do not lose valuable investments of 65 million dollars due to internal power struggles or bureaucratic obstacles. Collaboration and effective communication between government agencies are vital to provide a conducive environment for investors.

It is essential to streamline processes and create a unified approach in dealing with investment proposals. By promoting a cooperative and efficient system, we can attract more investments and foster economic growth while maintaining the highest standards of integrity and accountability. Let us work together to create a business-friendly environment that encourages investments, facilitates growth, and enhances our country’s reputation on the global stage.

It is commendable that the President is actively addressing these issues and taking steps to create a conducive environment for businesses in the country. The thorough study conducted by the Presidential Task Force indicates a commitment to understanding and resolving the challenges faced by investors. By providing comprehensive solutions to the identified problems, the government aims to improve the economic situation of the country and attract more investments. The timeline set for the implementation, with a target of next September or October, shows a dedication to timely action and progress.

We can look forward to a more business-friendly landscape that encourages investment, fosters economic growth, and ultimately contributes to the overall development of the nation.

By: Staff Writer

Colombo (LNW): More than 150 fuel station dealers have not maintained 50 per cent capacity stock and placed adequate orders to maintain stock requirements as of yesterday anticipating a fuel price revision next month.

Power and Energy Minister Kanchana Wijesekera said the Ceylon Petroleum Corporation (CPC) has informed that 101 fuel station dealers have not placed their orders for Octane 92 Petrol and 61 dealers for Lanka Auto diesel to maintain their stock requirements as of yesterday.

He said last month the CPC took over the management of several fuel stations that had not maintained minimum stocks & begun legal proceedings on several other dealers.

The Minister request all fuel station dealers to maintain adequate stocks and place orders accordingly.

Meanwhile, the Minister said CPC has adequate stocks for delivery. He said the Ceylon Petroleum Storage Terminals Limited (CPSTL) and CPC plants have 124,690 metric tons of diesel and 5,651 metric tons of super diesel as of 8.30 am today.

Also, they have 19,903 metric tons of Octane 92 and 4,537 metric tons of Octane 95 petrol.In addition, 26,539 metric tons of jet fuel are in stock.

The number of complaints received about the malpractices that are taking place at the petrol sheds is steadily increasing by the day, the Public Utilities Commission of Sri Lanka (PUCSL) said.

Nearly 200 complaints related to these irregularities were received by the department.In order to ensure that the fuel quality is properly maintained, 20 fuel samples have been collected from filling stations around the country and handed over to the Industrial Technology Institute (ITI) for testing.

“During the inspections conducted across the country, it was revealed that several filling stations were hiding fuel and several filling stations have been accused of dispensing less fuel,” the PUCSL said

– Sri Lanka’s Energy Minister Kanchana Wijesekera has suspended 40 fuel stations for breaching the government’s QR code rule while the latest technology will be implemented to ensure the fuel stocks several months ago.

Sri Lanka is recovering from one of its worst fuel crises in history. Motorists were forced to wait days in congested queues for pump fuel in mid last year soon after the island nation declared sovereign debt default, which deprived it of its external borrowing.

The QR code system was introduced in August last year to limit fuel to vehicles aiming to supply most vehicles with lesser quantity. However, some fuel stations have supplied fuel more than the weekly limited quantity and some have supplied even without QR code, officials say.

By: Staff Writer

Colombo (LNW): The government plans to take over the existing Rs10 billion RAMIS system from the Singapore Company to the Inland Revenue Department owing to its present operation inefficiencies.

This was discussed when the Committee on Ways and Means met in Parliament recently under the chairmanship. Patali Champika Ranawaka, Member of Parliament.

The Committee recently visited the Inland Revenue Department and discussed several issues including the RAMIS system.

Accordingly, the Committee met to inquire further into the matter. The Information and Communication Technology Agency (ICTA) was also called before the Committee for the same.

Thus, according to the agreement by the Singapore Company dealing with the RAMIS system, the Inland Revenue Department should take over the full responsibility of the RAMIS system from the coming month of January.

It was disclosed that the internal capacity including the human resources required for this has not been developed in the department.

In such context, the Chair of the Committee, Patali Champika Ranawaka Member of Parliament recommended to the Inland Revenue Department to submit a report in this regard.

The Chair also stated that the report should include a structured proposal for updating the system to adopt the RAMIS system.

It was also discussed that the RAMIS system, which was introduced 8 years ago, is still not fully operational and the Committee expressed their displeasure in this regard.

Another integrated information system to be built by merging 13 government institutions was also discussed at the Committee meeting held.

Several rounds of discussions were held with 13 concerned institutions in this regard and it was suggested that all these institutions should use the National Identity Number as a common code in their information systems.

The chairman of the committee advised to collect relevant information and take steps to prepare a proper data system connecting with the upcoming census by the Department of Census and Statistics.

The Chairman of the Committee advised to prepare a proper data system that the Department of Statistics should take steps in connection with the census to be conducted in the future.

The committee pointed out that related information technology experts can be procured from within the country and stressed the need to maintain such an accurate data system even under a public private partnership.

Also, instead of traditional methods such as sending letters to the taxpayers, the need to adapt to modern methods such as notifying via a SMS or introducing mobile applications (Mobile App) was emphasized.

The Committee Chair also advised to submit a report to the committee about the existing obstacles including the implementation of a fixed tax policy and the relevant legal changes that should take place.

By: Staff Writer

Colombo (LNW): National Credit Guarantee Institution (NCGI) is ready to begin its operation with the signing of the Shareholder Agreement (SHA) Finance ministry announced recently.

The National Credit Guarantee Institution (NCGI) has been established as a public limited company under No. P B 00271461, and initial Board of Directors (BoD) members have been appointed to represent the Government of Sri Lanka.

Consequently, the signing ceremony of the Shareholder Agreement (SHA) was held on July 5, 2023 at the Randora Auditorium of the Ministry of Finance allowing the chosen 13 Participatory Financial Institutions to be the founding members of the NCGI and proceed the share issuance. R M P Rathnayake, Deputy Secretary to the Treasury is the signatory for the Government’s side.

The approval of the Cabinet of Ministers has been obtained to establish NCGI with the intention of supporting the Small and Medium Enterprise (SME) sector in the country by assisting SMEs in overcoming obstacles faced by an inability to adapt to rapidly changing market demands, changing technology, and limitations in capacity due to a low level of financial inclusion, limited access to finance and especially a lack of acceptable collateral.

In a bid to support the country’s small and medium-sized enterprises’ (SMEs) access to commercial loans, the government is moving towards operationalizing the Asian Development Bank (ADB)-backed National Credit Guarantee Institution (NCGI) initiative as a public-private partnership (PPP), with an initial capital infusion of around US $ 110 million.

As the next step, the government and participating financial institutions are set to infuse US $ 100 million and US $ 10 million in capital, to commence the operations of the NCGI, according to Finance Ministry Development Finance Department Additional Director General P.M.K. Hettiarachchi.

Hettiarachchi noted that the government expects to fund the required US $ 100 million through the ADB, to operationalise the NCGI. Ten banks and three non-banking financial institutions (NBFIs) have joined the initiative by committing to capital infusion requirements.

As the banks and NBFIs consider SMEs to be of high credit risks and lending continues to be largely based on collateral, rather than cash flows, the SMEs remain crowded out from the financial sector by larger corporates.

According to the IFC estimates, Sri Lanka has the highest share of SMEs that are either fully or partially credit constrained.

The NCGI is expected to build the financial institutions’ capacity for cash flow-based credit appraisals, which will lead to more cash flow-based lending over the time.

Hettiarachchi noted that the government is now in formal discussions with the ADB to secure the funds.

The SMEs account for 52 percent of the country’s gross domestic product (GDP) while employing 45 percent of the workforce.

By: Staff Writer

Colombo (LNW): Indian Finance Minister, Nirmala Sitharaman, has extended an invitation to China to join forces with India, Japan, and France in providing financial assistance to Sri Lanka.

She also called on international financial institutions, such as the International Monetary Fund (IMF) and the World Bank, to accelerate their relief measures for countries grappling with debt vulnerabilities.

The Minister emphasized the importance of reforms and debt-relief measures implemented by multilateral development banks (MDBs) for struggling economies.

As India assumes the G-20 Presidency, these measures have become top priorities. Sitharaman urged for a comprehensive, efficient approach to address these issues both within and outside the confines of the IMF and World Bank structures



Sri Lanka required a quick redresses, although outside of the framework because they are a middle-income country,” she noted in a discussion at the India Japan Forum.

In Sri Lanka’s case, Japan, which holds the G-7 Presidency currently, quickly took the lead to address the distress, she pointed out.

“Japan came up, along with France and India, with a quick committee of creditors group, which started addressing the issue. And of course, it was an open forum, it wasn’t limited to just to the three countries, China is welcome to participate as one of the big creditors,” Ms. Sitharaman said.

Japan’s leadership in such cases with “a constructive approach to address debt distress” has been well-received, the Minister said, adding that this is an indicator that the G-7 and G-20 together would come up with solutions to the problem.

While the MDBs are acting to alleviate debt distress, they need to be “more nimble”, the Minister said, noting that “we are looking at situations where countries are waiting for more than three or four years after the application seeking some redresses, to get the actual resolution of the issues”

On the eve of the G20 Finance Ministers and Central Bank Governors meeting, Sitharaman expressed hope that the group could unite to address the debt distress of middle-income countries.

Sitharaman’s call for a more swift and comprehensive approach to debt relief reflects the pressing need for global cooperation in addressing the financial woes of middle-income countries like Sri Lanka.

With India, Japan, and France taking the lead, and the potential inclusion of China in these efforts, there is a glimmer of hope for these economies.

However, the real test lies in the ability of these major economies to combine their efforts effectively and the willingness of international financial institutions to speed up their relief measures.

Colombo (LNW): A 20-year-old youth was killed by gunfire in Martis Lane at Keselwatte area this (30) afternoon, Police said.

Two gunmen arrived on a motorcycle and opened fire with a T-56 rifle at the victim who was staying on the roadside, according to Police.

The victim, 20 and a resident of Colombo 12, was pronounced dead upon being admitted to the Colombo National Hospital.

Police are conducting investigation into the incident.

Colombo (LNW): New graduates will be recruited as teachers for the subject streams of Science, Technology, and English and foreign languages, said Education Minister Susil Premajayantha.

The next steps regarding the recruitment of new graduates as teachers will be undertaken at the provincial level, the Minister went on, adding that the recruitment of teachers and principals, on the other hand will be delayed due to interim orders issued by the Court.

The Minister made these observations in Kalutara.

As it is important to properly understand the current situation in the country, as a basic step to control and eradicate the drug menace immediately, it was decided to summon all relevant institutions and discuss the matter in the ‘Select Committee of Parliament to look into and identify the mechanisms to be implemented in order to immediately control and eradicate the rapidly spreading drug menace in the country and to submit observations and recommendations to Parliament in that regard’. 

This decision was taken July (27) when the first meeting of the said committee was held under the chairmanship of Minister Tiran Alas.

Accordingly, the Sri Lanka Police, the National Dangerous Drugs Control Board and the National Authority on Tobacco and Alcohol should be summoned before the committee to hold a wide discussion in this regard and identify the current situation, said the chairman of the committee, Minister Tiran Alas.

Accordingly, it was decided to summon the relevant institutions before the committee on August 10.

In addition to this, the need to establish a strategic plan for the immediate control and eradication of the drug menace and the need for coordination between the agencies working in this regard was also emphasised.

MPs Jayantha Samaraweera, Dr Upul Galappathi and Upul Mahendra Rajapaksa were present in this committee. Also, Acting Secretary General of Parliament Hansa Abeyratne and Director of Legislative Services and Director of Communications (Acting) H.E Janakantha Silva were also present.

By: Isuru Parakrama

Colombo (LNW): The Ceylon Petroleum Corporation (CEYPETCO) has informed that anticipating the fuel price revision next month, 101 fuel station dealers for 92 Petrol and 61 fuel station dealers for Lanka Auto Diesel have failed to maintain 50 per cent stock capacity, revealed Power and Energy Minister Kanchana Wijesekara.

These dealers, however, have placed adequate orders to maintain stock requirements as of yesterday (29), the Minister disclosed on Twitter.

Last month, the CEYPETCO took over the management of a few fuel stations that had not maintained minimum stocks and legal proceedings are being made on multiple other dealers as well, Wijesekara added.

CPC has informed that anticipating the fuel price revision next month, 101 fuel station dealers for 92 Petrol & 61 fuel station dealers for Lanka Auto diesel have not maintained 50% stock capacity & placed adequate orders to maintain stock requirements as of yesterday. Last month… pic.twitter.com/nsqtr16hN0

— Kanchana Wijesekera (@kanchana_wij) July 30, 2023