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Court orders arrest of Labour Secretary

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Colombo (LNW): The Horana Magistrate Court has warranted the arrest of R.G.A. Wimalaweera, former Commissioner General of Labour and current Secretary to the Ministry of Labour, in connection with the death of five persons at a chemical waste station of a rubber factory in Horana area.

This was when the case was taken up yesterday (24).

These deaths had occurred as the five persons had fallen into a chemical waste tank in the factory, and Wimalaweera is accused of influencing a former factory inspection engineer in the Kalutara district to produce false evidence pertaining to the incident as the then Commissioner General of Labour.

Accordingly, the Magistrate Court has warranted Wimaraweera’s arrest and ordered that the suspect be produced in Court and that the operation be executed within seven days through the Inspector General of Police (IGP).

EDB warns unlicensed foreign traders pose serious threat to local Gem and Jewellery Sector

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EDB: The Export Development Board (EDB) Advisory Committee on Gems, Diamonds & Jewellery sector has emphasised the importance of making Sri Lankan Gem & Jewellery traders more competitive and simplifying policy measures during the 7thAdvisory Committee Meeting held recently.

The renowned China Fort Gem Market located in Beruwala and Rathnapura are considered as bustling marketplaces for the gem trade in Sri Lanka. They attracts over 500 merchants from various parts of the world from the Middle East, China, and Europe. This gem markets provide an opportunity for small-scale miners to market their treasures. The miners and rough gemstone dealers from Rathnapura, Balangaoda, Nivithigala, Elehara, and Galle visit these markets to trade their gems.

Foreigners would visit Beruwala and Rathnapura to engage in gem trading activities, bringing their expertise, networks, and goods. In addition, it serves as a platform where gemstones are evaluated, traded and sold, contributing to the overall growth and development of Sri Lanka’s gem trade. These markets are highly active with millions of dollars worth of gems being traded every day.

The advisory Committee Members pointed out that currently, the presence and influence of illegal foreign traders and buyers at the China Fort Gem Market and Rathnapura have become a major challenge to local Gem traders. While these markets have brought new opportunities to the industry, it has also presented specific challenges that require careful navigation.

Members emphasised that the primary challenge faced by the Beruwala Gem Market and Rathnapura is the intensified competition from illegal foreign traders. These foreign people arrive in Sri Lanka using a visit visa and engage in gem business. Also, they don’t occupy any licence from the National Gem & Jewellery Authority which is a mandatory to engage in Gem trade. This unlicensed gem trading could seriously damage Sri Lanka’s reputation as it can lead to lot of mal practices. Members further emphasised that, these foreign traders have a wider range of buyer and seller access via online platform as they do more with online channels. As foreign traders and buyers become more active in the Beruwala Gem Market and Rathnapura, it puts more pressure on the local traders and facilitates smuggled businesses.

The money brought in for the gem purchases is being brought without following any government rules and regulations and the purchased stones are also taken out unofficially without being regulated whilst the traditional Sri Lankan dealers are subjected to all taxes and regulations. As a result, the miners, dealers and brokers tend to sell stones to these foreigners for cash without any documentation. This has badly affected the exporters who are using the official channels to obtain merchandise for exports. Also this will reduce the Government tax revenue and employment opportunities. 

Therefore, the Members emphasised that the Sri Lanka Government should give focus on making local traders more competitive to survive in this trade. Additionally, the committee stated that today, the gem trading hub is Thailand and all the European and American buyers who were patronising the Sri Lankan market have now been attracted by the Thailand market. At a period where we are losing our trade, it is really unfortunate to see that the Government is imposing many regulations which made the local traders even less competitive. Therefore, the Sri Lankan gem and jewellery traders are in jeopardy.

The Advisory Committee Members stated that the Sri Lanka Government support is not forthcoming and some of the policy measures discourage the local traders and make them less competitive. The committee identified Gems & Jewellery sector as a unique export sector among other export sectors as 99% of the value addition is locally produced while most of the others  involve more with foreign components.

The oversight supervision and the industry regulations must be revisited by the National Gem and Jewellery Authority to reduce these illegal businesses are carried out by foreign traders.

In addition, the Government should support by applying some policy measures to survive the local traders and the industry in the long term.

Local Loans and Development Fund activities should be more formalised: CoPE

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The ‘Local Loans and Development Fund’ under the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government was summoned to the Committee on Public Enterprises (COPE) which met on 20.07.2023 under the chairmanship of MP Prof. Ranjith Bandara.

This institution has been established by Ordinance No. 22 of 1916 with the aim of providing financial facilities at a concessional interest rate to the local government bodies for running public utility services as authorised by law. It has been amended on several occasions and has been named as the Local Loans and Development Fund under Act No. 24 of 1993.

The investigation was done through the following basic facts related to the Auditor General’s reports for the financial years 2020, 2021 and current performance.

Need to amend the Act
Since this is a financial institution similar to a bank, the need to amend the Act was emphasised by taking into consideration the timely matters. According to the Act, it is not appropriate for the Secretary of the Ministry to act as the Chairman of the Fund, so the Auditor General pointed out the importance of making amendments by focusing on all those matters.

It was discussed that, in 2018 ‘Asian Foundation’ had given a report regarding the restructuring of the institution and if it had been acted upon, great progress could have been achieved.

Since the Prime Minister as the Minister in charge of the subject has also held a discussion to amend the Act, the Secretary of the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government was informed to take steps promptly.


Need to make the posts of Director General and Internal Auditor full time permanent posts
The committee’s attention was drawn to the fact that the position of Director General has been an acting position for many years. It was also discussed about the absence of a permanent Internal Auditor. Accordingly, the COPE ordered to inform within two weeks about the next steps to be taken to appoint a permanent Director General as well as a full-time permanent Internal Auditor.

Absence of a formal system for disbursement of loans, project evaluation, and loan recovery
It was revealed that the fund has received 9 projects worth 249 million rupees in the year 2023, but the board of directors has not considered them yet.

Thus, it was recommended that a formal system and set of guidelines be set up, focusing on issues such as granting and recovery criteria, loan recovery capabilities, projects using loans and productivity. The committee emphasised the need for the loan committee to operate according to that formal system.

Need to streamline the system of loan distribution to each province
The COPE chairman revealed that 691 million rupees of the total loan amount of 847.7 million rupees has been given to the North-Western Province in 2021. The committee recommended that the loan distribution system to each province be streamlined.

Streamline the Internal Audit
The committee discussed about the lack of a permanent Internal Auditor to conduct the internal audit properly. It was recommended to recruit a permanent Internal Auditor and to provide the audit reports for the years 2011 and 2012 to the Auditor General within a month. It was also advised to implement the recommendations of the National Audit Commission.

A Corporate plan has been prepared for the period of 2019-2023, but it was revealed that it has not been approved. Accordingly, the committee advised to approve a corporate plan from 2023 to 2028.

Attention was also paid to the non-recovery of a loan amount of 12 million rupees given to the Dambulla Pradeshiya Saba in 1995, under the multi-crop development project, and the loan amount of 60.9 million rupees given to the Kandy Municipal Council. Accordingly, it was advised to take the relevant legal steps immediately.

The COPE Chairman emphasised that the activities of the ‘Local Loans and Development Fund’, which is the only institution that provides financial assistance to development activities through local government bodies, should be more streamlined. It was also decided to summon this institution in another six months.

State Minister Jagath Pushpakumara, and MPs Anura Priyadarshana Yapa, Dayasiri Jayasekara, Nimal Lanza, S.M. Marikkar, Upul Mahendra Rajapaksa, Madhura Withanage and Prof. Charita Herath were present in this committee.

Source: Parliament of Sri Lanka

SL Apparel Industry Receives Insights on EU Strategy for Sustainable and Circular Textiles

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The Embassy of Sri Lanka in Brussels, in collaboration with the Sri Lanka Export Development Board (EDB), organised an online briefing session on the EU Strategy for Sustainable and Circular Textiles on  20July 2023.

The event aimed to enlighten stakeholders within Sri Lanka’s apparel industry about the European Union’s progressive approach towards sustainable and circular textiles. The briefing session was conducted by a senior expert, Mikael Garellick, at the Textile Unit of the Directorate General of the International Market of the European Commission.

The virtual event brought together key players from Sri Lanka’s apparel sector, including the Sri Lanka Joint Apparel Association Forum (SLJAAF), government representatives, and industry experts, to foster meaningful discussions about the future of textiles in the context of environmental sustainability.

The EU Strategy on Sustainable and Circular Textiles, introduced by the European Commission, is a crucial initiative to promote sustainability in the fashion and textile industries. It encourages eco-friendly practices and aims to reduce the environmental footprint of textiles throughout their lifecycle. Given that the EU is a significant trading partner for Sri Lanka’s textile exports, understanding and aligning with this strategy holds great significance for the country’s apparel sector.

During the briefing session, Mikael Garellick from the European Commission provided in-depth insights into the EU’s approach to sustainable and circular textiles. He highlighted the policies, standards, and potential collaborations that can aid Sri Lanka’s apparel industry in its pursuit of eco-friendly and sustainable practices. Participants had the opportunity to engage in a Q&A session, discussing specific challenges and opportunities relevant to the industry’s transformation to sustainable practices.

The Ambassador of Sri Lanka to Belgium and the European Union, Grace Asirwatham, emphasised the paramount importance of Sri Lanka’s apparel industry’s transformation to sustainable practices, aligning it with the EU Strategy on Sustainable and Circular Textiles to harness significant market benefits in the EU in the future.

Acting Director General of the EDB, Malani Baddegama, explained that Sri Lanka’s major export to the EU is apparel items and the benefits that it enjoys under the GSP Plus scheme. She further acknowledged the significance of such briefings and thanked the European Commission official for the insightful briefing.

Govt plans to establish an Agriculture and Plantation Research University in SL

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Dr. Ramesh Pathirana, Minister of Plantation Industries and Minister of Industries, stated that action will be taken to establish an Agriculture and Plantation Research University by merging all institutions connected to the plantation industry and agriculture sector, as per President Ranil Wickremesinghe’s concept.


The fundamental draft related to this has already been prepared, the Minister noted, and it is intended to complete the basic work this year.


He expressed these views today (24) during a press conference themed ‘Collective Path to a Stable Country’ held at the Presidential Media Centre (PMC).
Dr. Ramesh Pathirana further commented;


A year ago, plantations and agricultural centres faced a severe crisis due to the shortage of fertilisers. Due to this, the tea industry and other plantations also suffered some collapse. Soon after taking office, President Ranil Wickremesinghe launched a program to provide fertilisers to the farmers.


Therefore, the farmers are getting the fertilisers they need in a systematic way. All the fertilisers required for tea, coconut, rubber and other crops are available in the market at competitive prices. Fertiliser prices, which have increased in the world market due to the war situation, are currently decreasing. As a country, the agricultural and plantation sectors are now showing some effectiveness due to timely availability of fertiliser to the farmers.


251 million kilos of finished tea was produced in 2022. As a result, it is expected that 280 million kilograms of finished tea would be ready by the end of this year. Last year, the price of tea increased drastically due to the decrease in production. Currently, the rupee is strengthening, which has resulted in a fall in tea prices. Tea exports have been adversely impacted by global conditions, the Russian-Ukrainian war situation, and civil wars in countries like Iran, Libya, and Syria, which are our top buyers.


An agreement was recently signed to supply tea for nearly 500 million dollars worth of crude oil purchases from Iran. Accordingly, arrangements are made to provide tea according to the value of the relevant amount. Arrangements have also been made to re-export Sri Lankan tea to the Iranian market under the concept of ‘Tea for fuel’. Due to this, we will be able to re-export more tea to the Iranian market, which was lost to some extent in the past.


Also, it has been possible to get an income of nearly one billion dollars last year through the export of rubber. Its biggest value was 1.1 billion dollars in 2021. During Covid, rubber-related products received high demand in the world market. Sri Lanka is considered to be the hub among the main tyre producing countries. It is believed that the export of rubber-related products will be able to reach between 900 million dollars and 1 billion dollars this year as well.
With the world economic deviation, the export of every product has experienced a decrease. Economists predict that normalcy will return after the third quarter. Due to this, it will be possible to reach the export targets of plantation crops again in the future.


In recent times, apart from tea and rubber, coconut-related products have seen the highest growth. Compared to 2020, the market has expanded by approximately 15%-20% in 2021 and 2022. Accordingly, in 2022, it was able to earn an export income of 836 million dollars. It can reach a value close to that this year as well. Within the next five years, there is a high probability of increasing the export income of coconut-related products to 1.5-2.00 billion dollars.
In order to improve the country’s coconut industry, a law will be brought in the near future that states that a special permission must be obtained to divide coconut lands of more than one acre. For that, we hope to follow up again on the instructions of President Ranil Wickremesinghe. Additionally, the law requiring the authorisation of the Divisional Secretariat and the Grama Niladhari shall be enforced if more than two coconut trees are to be cut down.


In addition, it is believed that nearly 400 million dollars will be earned this year by exporting cinnamon and other spices.


President Ranil Wickremesinghe presented a new proposal to establish an Agriculture and Plantation Research University in Sri Lanka by integrating all research institutes related to the plantation industry and agriculture.


There are seven institutions related to the plantation industry in this country. Agricultural institutions are also to be integrated into this. The basic draft related to this has been prepared by now. This is a very complex project. But the basic work is expected to be completed this year.


However, through the available resources of the country, children are able to get better educational opportunities. Also, efforts are being made to focus on upgrading to university standards.


It is anticipated that the plantation industry’s backwardness will be reduced, allowing it to go forward more vigorously in the future. The government is prepared to offer the assistance required to expand the plantation industry’s value chains. It will step in as a Ministry in situations involving technological know-how and financial resources.

Today’s (25) weather conditions to follow showers, strong winds

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By: Isuru Parakrama

Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-Western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (25).

A few showers may occur in the Northern Province, but mainly fair weather will prevail elsewhere over the Island, the statement added.

Fairly strong winds of about 40 kmph can be expected at times in western slopes of the central hills, Northern and North-Central provinces, and in Monaragala, Hambantota and Trincomalee districts.

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershower.

Marine Weather:

Condition of Rain:
Showers or thundershowers may occur at several places in the sea areas off the coast extending from Colombo to Matara via Galle. 
Winds:
Winds will be south-westerly and speed will be (30-40) kmph. Wind speed may increase up to (50-60) kmph at times in the sea areas off the coast extending from Hambantota to Pottuvil and in the sea areas off the coast extending from Chilaw to Trincomalee via Mannar and Kankasanthurai.
State of Sea:
The sea areas off the coast extending from Hambantota to Pottuvil and in the sea areas off the coast extending from Chilaw to Trincomalee via Mannar and Kankasanthurai will be rough at times. The other sea areas around the island may be moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

New SLT Chief assures changes in Board had nothing to with divestment of shares

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Colombo (LNW): Reyaz Mihular, new Chairman of Sri Lanka Telecom PLC assured that the recent changes in the company’s Board of Directors had nothing to with the divestment of shares by the Government of Sri Lanka (GOSL).

In a statement, the SLT Chief emphasised that they as a Director Board have a sole responsibility to ensure SLT-Mobitel is run professionally, and the shareholders, therefore, cannot be expected to be told any conditions for selling shares. In this case, the decision can only be made by the GOSL itself, Mihular added.

The SLT Chairman further noted that the changes made in the company are solely “to ensure that SLT-Mobitel is managed properly following good governance practices.”

Full Statement:

Government removes restrictions on foreign exchange outward remittances

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By: Staff Writer

Colombo (LNW): The Ministry of finance has relaxed certain limitations/suspensions imposed on outward remittances of foreign exchange to maintain financial system stability.

New order has been issued by President Ranil Wickremasighe in his capacity as the country’s finance minister under Section 22 of the Foreign Exchange Act, No. 12 of 2017 (FEA) since 02.04.2020.

The restriction order earlier issued was aimed to temporarily suspend/limit certain outward remittances with a view to assist and maintain the financial system stability by minimizing the pressure on the exchange rate and preserving the foreign currency reserve position of the country.

This decision was taken by the. Minister of Finance, with the recommendation of the Monetary Board of the Central Bank and the approval of the Cabinet by considering the current and expected developments in the domestic foreign exchange market and with a view to further facilitate international transactions.

It has relaxed certain limitations on outward remittances for capital transactions and removed the restrictions on current transfers of emigrants, while continuing the other suspensions/limitations which were imposed under the previous Order. The new Order is effective for six (06) months from 28.06.2023.

First time claim of migration allowance of up to a maximum of US$ 30,000 has been changed up to a maximum of $50,000* under the new order.

Subsequent claims after the initial claim of migration allowance.u p to a maximum of $ 10,000* has been increased to a maximum of $20,000*.

Repatriation of current income or accumulated current income of the emigrants to a maximum of $30,000*has been removed.

Overseas investments through Outward Investment Accounts (OIAs) by eligible resident are now changed from a maximum of 415,000* to a maximum of $30,000*.

Invest in ordinary shares of a company outside Sri Lanka, for the purpose of expanding their core business in overseas. and Companies listed in the Colombo Stock have been exempted from the suspension with a limit of $200,000 and $ 100,00 respectively.

Chinese Ambassador lauds Sri Lanka’s remarkable economic recovery

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By: Staff Writer

Colombo (LNW): Chinese Ambassador to Sri Lanka, Qi Shenhong praised Sri Lanka’s economic recovery process in the last twelve months.

The meeting was called on by Prime Minister Dinesh Gunawardena, who expressed gratitude to China for its continuous support to Sri Lanka.

Chinese Ambassador congratulated Prime Minister Dinesh Gunawardena and commended the country for impressive progress in overcoming the economic crisis during the first year of the new Government.

Prime Minister Gunawardena also expressed his gratitude to China for its most recent kind act of generosity for Sri Lanka’s educational system.

The Chinese Government offered school bags, stationery, clothing for school uniforms and educational equipment to schools countrywide.

The assistance will lead to a positive impact on the educational landscape and facilitate a conducive learning environment for Sri Lankan students.

With Sri Lanka striving to boost its economic recovery, Prime Minister Gunawardena emphasized the country’s openness to welcome direct private investments, particularly for sectors such as agriculture, renewable energy, irrigation, and water supply.

These investments are envisioned to provide long-term solutions to the economic challenges faced by the country.

Secretary to the Prime Minister Anura Dissanayake was also present during the meeting, underscoring the importance of the discussions and highlighting the collaborative efforts between Sri Lanka and China.

China’s support and cooperation have been instrumental in various development initiatives in Sri Lanka, and their continuous engagement with the country underscores the strong bilateral ties shared between the two countries.

This support comes at a time when the country is navigating a severe economic crisis that is having devastating impacts on people’s lives and livelihoods and which demands deep reforms to stabilize the economy and protect the poor and vulnerable.

Sri Lanka’s poverty rate is estimated to have doubled from 13.1 to 25 percent between 2021 and 2022—an addition of 2.5 million poor people—and is projected to increase by another 2.4 percentage points in 2023.

The government lays out a two-phased approach that starts with a focus on urgent macro-fiscal and structural reforms and support to protect the human capital and most vulnerable population.

After the first 18-24 months, and subject to successful implementation of the reform program and international debt relief and financial support, the focus will gradually shift to investments in longer-term development needs that will help promote private sector job creation—particularly for women and youth—and boost resilience to climate and external shocks.

The Sri Lanka resilience, stability and economic turnaround (RESET) development policy operation ($500 million) will support reforms that help improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable.

It will provide budget support in two equal tranches against agreed prior actions.

The Social protection project ($200 million) seeks to support Sri Lanka in providing better-targeted income and livelihood opportunities to the poor and vulnerable and improving the responsiveness of the social protection system.

Sri Lanka-born BBC newsreader George Alagiah passes away

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Samuel Osborne

Sky News: BBC newsreader George Alagiah has died at the age of 67, his agent has said.

The Sri Lanka-born journalist – the face of BBC One’s News At Six since 2007 – was diagnosed in 2014 with stage four bowel cancer, which had spread to his liver and lymph nodes.

He endured two rounds of chemotherapy and several operations, including the removal of most of his liver.

In October 2015 he announced his treatment was over and returned to BBC News At Six on 10 November.

Alagiah joined the BBC in 1989 and spent many years as one of the corporation’s leading foreign correspondents before moving to presenting.

In a statement, his agent Mary Greenham said: “I am so terribly sorry to inform you that George Alagiah died peacefully today, surrounded by his family and loved ones.

“George fought until the bitter end but sadly that battle ended earlier today.

“George was deeply loved by everybody who knew him, whether it was a friend, a colleague or a member of the public. He simply was a wonderful human being.

“My thoughts are with Fran, the boys and his wider family.”

George Alagiah with his wife Frances and sons Adam and Matt in 2008 after he received an OBE

‘One of the best and bravest journalists of his generation’

BBC director-general Tim Davie said: “George was one of the best and bravest journalists of his generation who reported fearlessly from across the world as well as presenting the news flawlessly.

“He was more than just an outstanding journalist, audiences could sense his kindness, empathy and wonderful humanity. He was loved by all and we will miss him enormously.”

Labour leader Sir Keir Starmer tweeted: “Deeply saddened by the news of George Alagiah’s passing.

“A much-loved face of BBC News for decades, George will also be remembered for his brilliant, fearless journalism as foreign correspondent. He rightly won awards for his evocative, boundary-pushing reporting.

“British journalism has lost a talent. My thoughts are with his family and loved ones.”

The BBC’s world affairs editor John Simpson said: “Deeply, deeply sorry to hear about dear George Alagiah.

“A gentler, kinder, more insightful and braver friend and colleague would be hard to find. I loved having his company in the BBC World Affairs Unit, and his progress after that was a pleasure to watch.”

Podcast host Jon Sopel, former North America editor of BBC News, said: “Tributes will rightly be paid to a fantastic journalist and brilliant broadcaster – but George was the most decent, principled, kindest, most honourable man I have ever worked with. What a loss.”

Sky News presenter Mark Austin said: “This breaks my heart. A good man, a rival on the foreign correspondent beat but above all a friend.

“If good journalism is about empathy, and it often is, George Alagiah had it in spades. He understood injustice and the power of good reporting to highlight it, if not correct it.”

An illustrious career as a print reporter, author, foreign correspondent and presenter

Alagiah first began hosting the 6pm news bulletin in early 2003, but stepped up to front it solo four years later following the departure of his co-host, Natasha Kaplinsky.

He was previously a prominent foreign correspondent, often as a specialist in Africa with coverage of civil wars in Somalia and Liberia, as well as the genocide in Rwanda 20 years ago.

Throughout his career, he interviewed central political figures, among them former South African president Nelson Mandela, Archbishop Desmond Tutu, and ex-Zimbabwean leader Robert Mugabe.

Before joining the BBC, Alagiah worked as a print journalist and went on to write a number of books including A Home From Home, which looked at what it means to be British.

Throughout his illustrious career, he also presented other shows such as Mixed Britannia, looking at the UK’s mixed-race population.

He was made an OBE in the 2008 New Year Honours.

Battle with cancer

Alagiah’s cancer returned in December 2017 and he underwent further treatment before again returning to work.

He took another break from studio duties in October 2021 to deal with a further spread of cancer, before returning in April 2022.

Alagiah announced he was taking a break from presenting the BBC’s News At Six in October last year following another scan.

He spoke openly about living with cancer, joining a videocast for the charity Bowel Cancer UK in 2020 in which he said he sometimes felt he had the “easy part” – living with bowel cancer while his loved ones had to watch.

“Those of us living with cancer know that it affects our families almost as much as ourselves,” he said.

“In some ways, I’ve felt through my six-plus years living with cancer that sometimes I have the easy part… my job is just to stay fit and my family has got to watch all of the other things.”

Alagiah is survived by his wife, Frances Robathan, and two children.

Source: Sky News