Showers will occur at times in Eastern and Uva provinces.
Showers or thundershowers will occur at several places in Western and Sabaragamuwa provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts during the afternoon or night.
Fairly strong gusty winds of about 40kmph can be expected over Northern, North-Central, Central and North-Western provinces and in Trincomalee and Hambantota districts.
General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
COLOMBO, Feb 27 (Reuters) – The International Finance Corporation (IFC), the World Bank’s investment arm, said it will provide Sri Lanka a $400 million cross-currency swap facility to help fund essential imports.
Three private banks, which together deal with over 30% of Sri Lanka’s remittances and exports, will receive the facility to fund essential imports, including medicine, food and fertiliser, the IFC said in a statement on Monday.
The funds will provide a much needed foreign exchange cushion for Sri Lanka, which is grappling with its worst financial crisis in over seven decades partly triggered by a severe shortage of dollars.
The island nation’s economy is estimated to have contracted by 9.2% in 2022 and is expected to shrink a further 4.2% in 2023, according to World Bank data.
“We expect this financing to boost confidence in the investor community, attract fresh capital inflows to support the Sri Lankan economy,” said Joon Young Park, IFC’s Portfolio Manager, Financial Institutions Group for South Asia.
IFC is also working on further plans to support client banks with other long-term funding and advisory services in the future, the statement added.
Sri Lanka signed a preliminary agreement with the International Monetary Fund (IMF) for a $2.9 billion bailout last September but has to put its debt on a sustainable repayment track before the funds can be disbursed.
Reporting by Uditha Jayasinghe; Writing by Sakshi Dayal; Editing by Sudipto Ganguly & Shri Navaratnam
Sri Lanka Ambassador to Belgium, Luxembourg, and Head of Mission to the European Union Grace Asirwatham met with Vice President of the European Investment Bank (EIB) Kris Peeters in Luxembourg on 20 February 20. Senior Loan Officer, Public Sector Operations, Asia and Pacific, in the Global Partners Department of the EIB Francesco Consiglio, and Head of the Office of the Vice President Anouk Hamers were also associated with the meeting.
Ambassador Asirwatham briefed the Vice President of the EIB on the current economic situation in Sri Lanka and the actions being taken by the Government of Sri Lanka, including the engagement with the International Monetary Fund (IMF) to ride out the crisis. Ambassador Asirwatham further briefed the Vice President on the vision of the President of Sri Lanka to develop an export-oriented competitive economy, an environmentally friendly green and blue economy, and a digital economy. Vice President Peeters responded by saying that the EIB was closely monitoring the progress of Sri Lanka’s economic revival, particularly the IMF’s offer of an Extended Fund Facility (EFF) for Sri Lanka.
Given that the EIB supports a large number of green projects around the world, the Ambassador presented details of Sri Lanka’s ambitious plans to become a green economy by 2050 and the various measures proposed in that direction in the preliminary report on the Sri Lanka Climate Prosperity Plan, including Sri Lanka’s commitment to supporting the Paris goals of limiting global warming, decreasing carbon emissions by 2030, and making Sri Lanka a low-carbon hub, as well as planning to achieve 70% of renewable energy in electricity production by 2030, among other plans.
The Vice President said that the EIB will continue its commitment of Euro 50 million to fund the ongoing Greater Colombo wastewater management project in Sri Lanka. He added that once the IMF’s Extended Fund Facility (EFF) for Sri Lanka comes into force, the EIB may be able to consider new financial commitments to support green projects in consultation and collaboration with the European Commission.
Kris Peeters, who previously served as the Deputy Prime Minister of Belgium, later joined EU politics before being appointed as the Vice President of the EIB.
A delegation from Sri Lanka participated in the BIOFACH Trade Fair, the world’s largest annual organic food products trade show held from 14-17 February 2023 in Nuremberg, Germany. This annual trade fair held since 1990 attracts food industry professionals from across the world. This year, 2,765 exhibitors from 95 countries participated in the trade fair. The fair was also attended by 36,000 trade visitors from 135 countries. Germany is one of the largest organic food markets in the world and BIOFACH figures show that the organic sector recorded revenues of €15.3 billion for the German organic market in 2022. In Europe, Germany is the largest market for organic products as well as the largest organic producer. In addition, veganism is increasingly popular in Germany creating export opportunities for meat and dairy substitutes as well as breakfast foods.
Sri Lanka’s business delegation to BIOFACH 2023, comprising thirteen Sri Lankan companies, was led by Suresh de Mel, Chairman of the Export Development Board (EDB). The country pavilion of Sri Lanka showcased certified organic agricultural products such as spices, coconut-based products, tea, fresh fruits and vegetables, beverages, herbal products and dried fruit. The inauguration of the Sri Lanka pavilion was attended by Sri Lanka’s Ambassador to Germany Varuni Muthukumarana and EDB Chairman Suresh de Mel.
The Sri Lankan companies at the event benefitted from the exposure and networking at the trade fair which provided a forum for producers, exporters, and buyers of organic products to meet business partners, observe new trends and technological developments. The participation of the Sri Lankan companies was facilitated by the EDB, Import Promotion Desk (IDP) of the German Government and the Sri Lanka Embassy in Berlin. In parallel to BIOFACH 2023, nine Sri Lankan companies took part in a study tour of Germany and the Netherlands organized by the EDB and GIZ, the German government’s service provider in the field of international cooperation.
Sri Lanka’s organic food exports have emerged as a promising sector. The country has maintained a reputation in organic crop production and exports different varieties of organic products adhering to international standards. Sri Lanka is considered a pioneer in the Asian region championing organically certified tea and cinnamon in the world market. In April 2022 Sri Lanka was awarded its first Geographical Indication (GI) certification for Ceylon Cinnamon by the European Union. The organic food export sector is an important driver of sustainable development and job creation, particularly in rural areas.
The IPD regional office in Sri Lanka was established in 2022 funded by the Federal German Ministry for Economic Cooperation and Development (BMZ). With the aim of promoting fresh and natural product groups, IPD identifies suitable exporters and tour operators in selected developing and emerging countries to integrate the partner countries into international trade. Sri Lanka is one of sixteen partner countries chosen by IPD to support SME companies, where IPD partners with the EDB. Sri Lanka is also one of four IPD hubs where regional offices are maintained, the others being Côte d’Ivoire, Ecuador and Uzbekistan. For BIOFACH 2023, the IPD regional office provided financial assistance for the participation of select Sri Lankan exhibitors. Workshops for exhibitors were organized by the IPD and EDB to improve their networking and marketing skills at the trade fair. Next year’s BIOFACH Trade Fair is scheduled for 13-16 February 2024 in Nuremberg.
Colombo (LNW): The Sri Lanka Rupee has once again slightly appreciated against several foreign currencies, including the United States Dollar.
In comparison to yesterday (27), the Sri Lanka Rupee has appreciated against the US Dollar with the Sell Rate dropping to Rs. 366.92 from Rs. 367.92, CBSL Exchange Rates reveal.
Colombo (LNW): A Cabinet paper presented by President Ranil Wickremesinghe proposing a ‘National Contributory Pension Scheme’ to allocate retirement payments for the public servants employed since January, 2016 has been approved.
Accordingly, 08 per cent of the basic salary of a public servant since enrolment and 12 per cent as contribution by their employer will be credited to the Fund.
The paper also proposes the establishment of an independent body controlled by the Board of Management to manage the Fund and the appointment of a manager who is categorically qualified for the purpose.
The Cabinet, thereby, has approved the proposal by the President to advise the Legal Drafter to draft a bill to make the necessary arrangements in this regard.
Colombo (LNW): Foreign Minister Ali Sabry is set to pay an official visit to India from March 02 to 04, 2023 to attend the eighth edition of the ‘Raisina Dialogue’ in New Delhi.
Raisina is India’s premier conference on geopolitics and geo-economics dialogue, and this year it will be hosted by the Observer Research Foundation in partnership with the Ministry of External Affairs in India.
Sabry is expected to sit for two special panel discussions on March 03, 2023, on the topics “Healing a Divided World” and “Bytes of Promise: How can Technology Lift Communities.”
The Sri Lankan Foreign Minister is also set to meet with his counterparts from several other nations in light of holding bilateral talks aiming new avenues for the strengthening of mutually beneficial cooperation.
Colombo (LNW): The Police Media Division today (28) issued a statement debunking reports on an alleged plot to assassinate the President, as described by a website belonging to a private radio channel.
The news published on the website, titled, “CID begins probe into a plot to assassinate the President,” is completely false, the statement read, adding that neither has the Criminal Investigation Department (CID) received such information, nor has launched any probe of such.
At least half a million people in Sri Lanka lost their jobs in 2022, majority of them being employed women and those in the industry and services sectors, the World Bank claimed.
According to the Vice President for the South Asia Region of the World Bank Group, those already classified as poor in Sri Lanka have seen a 65% increase in their cost of living, while the increase was 57% for the non-poor, highlighting the significant loss of welfare for all Sri Lankans.
In a piece of writing on the island’s crisis situation, Raiser attributed Sri Lanka’s economic adversity to years of economic mismanagement, weak governance, poor policy choices and the impacts of external shocks such as the Covid-19 pandemic and Russia’s invasion of Ukraine.
Raiser noted that the depth of the crisis has made it clear that Sri Lanka needs a new development model. However, the road to recovery is challenging and the necessary fiscal adjustment measures can be painful, he added.
Debt relief from Sri Lanka’s creditors and fresh financing from international financial institutions are thus urgent to ensure people don’t lose patience with reforms and the opportunity for a change is not lost.
The United States asserted that it is Sri Lanka’s partner and stands with the island nation as it navigates through this difficult time.
The US Ambassador to Sri Lanka, Julie J. Chung said that the relationship between the US and Sri Lanka is broad and deep.
She also highlighted in her opening remarks that 2023 is the 75th anniversary of diplomatic relations between the U.S, and Sri Lanka, and noted that “the relationship between our two countries is broad and deep, and at its very heart is our shared commitment to People, Progress, and Partnership.”
The Ambassador said that the core elements of the Indo-Pacific Strategy encompass a “shared vision for an Indo-Pacific that is Free and Open, Prosperous, Connected, Resilient, and Secure.”
She emphasized that “we can all agree that working together to build a prosperous Indo-Pacific is more critical now than ever when we consider the economic challenges Sri Lanka is currently facing. So let me be clear: the United States is Sri Lanka’s partner and stands with Sri Lanka as it navigates through this difficult time.”
She expressed these views at an event hosted by the General Sir John Kotelawala Defense University, in partnership with the U.S. Embassy, to launch a publication entitled “A Shared Vision for the Indo-Pacific: Implications for South Asia”.
It also discusses the U.S. Indo-Pacific Strategy on its one-year anniversary, including how the Strategy supports regional visions for prosperity, democracy, and security.
The publication includes articles and remarks offering a variety of perspectives on the Strategy from regional analysts and U.S. experts.
Vice Chancellor of General Sir John Kotelawala Defense University Major General Milinda Peiris welcomed participants to the event, noting that “This year marks the 75th anniversary of the U.S.-Sri Lanka diplomatic relations. It is a great pleasure that the U.S. embassy and the KDU could launch this valuable publication on such a memorable juncture.”
In his keynote address, Peter A. Gumataotao, Rear Admiral (Rtd) U.S. Navy, Director of the Daniel K. Inouye, Asia-Pacific Center for Security Studies, said that “What is at stake is our ability to respond to activities that undermine the values and principles of a free and open Indo-Pacific.
Competition is good, but when rules are changed, the process should be transparent and agreed on. [The U.S. and our Allies and Partners should all work collectively as a group of like-minded countries to ensure the preservation of the existing framework that has provided all of us these many decades of peace, prosperity, and opportunities for development.”
