Qatar and Sri Lanka have embarked on significant developments in bilateral relations this year, and seek to further boost cooperation in areas that matter to both countries, Ambassador of Sri Lanka H.E. Mohamed Mafaz Mohideen has said.
Sri Lanka seeks to enhance the longstanding ties with Qatar by focusing on untapped potentials in the corporation, Ambassador Mohideen said, addressing a reception held on Tuesday at The Westin Doha Hotel to mark the country’s 75th Independence Day.
The event was graced by Minister of Labour Dr. Ali bin Smaikh Al Marri; Minister of Social Development and Family H E Maryam bint Ali bin Nasser Al Misnad; and Director of the Protocol Department Ambassador H E Ibrahim Yousif Abdullah Fakhroo. They were joined by members of the Sri Lankan community.
Addressing the guests, Ambassador Mohideen said: ”Sri Lanka has a long standing relationship with Qatar, established in 1976 with ambassadorial level diplomatic relations and reinforced through high level visits and several bilateral agreements.
He expressed the belief that there is much untapped potential in our partnership and cooperation.”
“Therefore, he proposed to take a leap forward in the relationship from a declaration phase to an implementation phase in generating tangible outcomes on the agreements that we have reached with the blessings of our leaders and policy makers,”.
Ambassador Mohideen noted that Sri Lanka is seeking to develop ties in trade and commerce, tourism, education and other areas.
“On the bilateral front we have seen significant developments this year. Qatar Charity has recommenced their work in Sri Lanka which would provide tangible outcomes benefiting vulnerable and marginalized communities.
Discussions are also underway between the Ministry of Education in Sri Lanka and Education Above All Foundation in order to provide assistance in the education front,” he added.
Ambassador Mohideen also added that the Sri Lankan embassy in Doha seeks to establish a Foreign Ministry level consultation committee; organise the third session of the Qatar-Sri Lanka Joint Economy, Commercial and Technical Commission; and create a platform which would act as an umbrella organisation in promoting trade between Qatar and Sri Lanka.
He also emphasized on the ongoing economic challenges in Sri Lanka and said that the country has overcome several hardships in the past with resilience, and lauded the support extended by Qatar in overcoming the situation prevailing in Sri Lanka.
“Similarly, here’s my profound belief that showing the same resilience that we as one nation could overcome the economic challenges; synergize in our energies within and outside our country with the assistance and partnership of our true international friends such as Qatar,” said Ambassador Mohideen.
A short documentary on the diversity and beauty of Sri Lanka was screened, and traditional dance and songs were performed for the guests.
Qatar-Sri Lanka bilateral ties achieve significant development:
Apparel exports on January 2023 sink to its lowest month after five years
Apparel exports in January had sunk to lowest for the month in the past five years, reiterating industry’s concerns that 2023 will be very challenging.
Exports in January amounted to $ 396.6 million, down sharply by 18.6% from the previous year. The 2023 January performance dipped beyond the previous lowest of $ 397.61 million in 2021.official data shows.
The best January performance of $ 452 million was in 2019 in which year exports hit a record $ 5.3 billion before being overtaken last year.
Exports in January 2023 to the US were down by 24% to $ 162 million from a year earlier and to the EU by 19% to $ 113 million. Shipments to the UK were down by 8% to $ 56.3 million and other markets down by 10% to % 65 million.
The 2023 January performance marked the fourth consecutive year-on-year monthly decline though month-on-month it had been a bit erratic.
Apparel exports in 2022 managed to grow by 10.7 % to a record $ 5.4 billion largely aided by stellar performance in the early part of the year. Overall textile and garments exports grew by 9.5% to $ 5.95 billion.
One reason for negative growth in recent months is higher inventories both at store-level and with consumers. High inflation in key markets is another factor. In the 4Q of 2022 the apparel industry experienced a 15-20% decline in orders
Due to these factors industry analysts said Sri Lanka’s apparel exports could continue to be lower YoY basis until the first half of 2023 or beyond.
In the short- to medium-term, if exports were to increase new markets or greater access to emerging or high potential markets is key. In this regard, early finalization of proposed Free Trade Agreements proposed by the President Ranil Wickremesinghe-led Government is paramount, analysts stressed.
The other stimulant will be Sri Lanka manufacturers and exporters managing to keep their costs down for which the country’s macroeconomic fundamentals and indicators as well as ease of doing business need to improve.
Last week the apparel industry fumed against the 66% increase in electricity tariff by the Government warning it was a severe blow to its competitiveness.
“The current increase is a further 31% with an overall increase of 165% since June 2022. This translates to an increase in manufacturing costs of close to 5% just on electricity,” the Joint Apparel Association Forum said.
With the increases that have gone through, this will leave Sri Lanka with a tariff of around 12 cents per kWh, which will undoubtedly make Sri Lanka uncompetitive and unattractive to investors.
SL Rubber Product industry gets a boost from French aided RIVER project
The Rubber Product industry, the 4th largest export earning industry accounting for 8% of the total national exports , has brought US$977 million as export income into Sri Lanka mainly from tyre exports.
The South Asian country intends to increase revenue from rubber products to $3 billion by 2025 by improving the standard of small holders and the rubber value chain while supporting rubber farmers. ,
The Rubber Improvement of Value Chain and Embedded Smallholders Resilience (RIVER) project yesterday entered into a memorandum of understanding (MoU) to start off a project supported by the French Government and top tyre manufacturer – Michelin Group to support 6,000 rubber farmers.
The initiative is supported by the French Government, Michelin Business Consortium and Michelin Lanka Company.
The project will support farmers to improve their value chain of rubber products and expand their capacities through this project for three years.
The implementation of the project will benefit 6,000 small-scale rubber estate owners in Badalkumbura and Medagama areas in the Monaragala district. The project is expected to benefit approximately 30,000 Sri Lankans.
The industry provides direct and indirect employment opportunities to over 300,000 persons.
This initiative is financially supported by the Michelin Group, and its operations are carried out by the Michelin Lanka Company, the group›s local subsidiary. France-based Ksapa Group will implement the project under the guidance of the Plantation Industries Ministry and the French Embassy.
There will be 565,000 Euros committed to the project for the development of green ideas, with a total expenditure of roughly 1 million Euros. The grants are invested as part of a public- private partnership led by the French Ministry of Economics and Finance.
Major markets for finished rubber products are the US, Germany and Japan, while Pakistan, Germany and Japan are major markets for natural rubber from Sri Lanka, he added.
The main types of rubber produced in Sri Lanka are Ribbed Smoked Sheets (RSS), LatexCrepe, Sole Crepe, brown crepe, technically specified Rubber (TSR) and Centrifuged Latex.
For its unique properties, Sri Lanka’s Natural Rubber has a high demand in the world market.Currently Sri Lanka is the only manufacturer of the best quality Latex crepe rubber in the world and also the largest exporter of same.
Latex Crepe is the highest quality natural rubber and generally considered as the Rolls Royce of rubber and fetches a premium price over all other types and grades. Sri Lanka’s total production of natural rubber in the year 2022 was 70,867 MT.
Other products are pneumatic tyres, latex gloves, rubber flooring, mats, automatic components, sealing rings, rubber bands, straps, hoses and hot water bottles for the export market
Plantation Industries Minister Dr. Ramesh Pathirana, said through this project, rubber and other diverse crops are grown, clones are selected, latex is collected, fertilisers are applied, training in chemical use is provided, and skills such as entrepreneurship, human resource management, leadership, and responsible labour management practices are developed.
Committee on Public Finance meets for the first time
The committee on Public Finance, met for the first time yesterday (23) under the patronage of newly appointed chairman, Member of Parliament Hon. Mayantha Dissanayake.
In terms of the Standing Orders of Parliament, Member of Parliament Hon. Mayantha Dissanayake, representing the opposition, was nominated as the Chairman of the Committee on Public Finance by
the Committee of Selection which met yesterday. Several Members of Parliament representing the ruling party and opposition were present in this meeting.
SLPP cancels its inaugural rally for the LG elections
The Sri Lanka Podujana Peramuna’s inaugural rally scheduled for the local government elections has been canceled.
The rally was scheduled to be held today (24) in Anuradhapura.
However, Member of Parliament SM Chandrasena said that considering the ongoing court case regarding the election, his party decided to cancel the rally.
Sri Lanka Original Narrative Summary: 24/02
- President Ranil Wickremesinghe says the Election Commission has not taken an official decision on a date to hold the Local Government Election: insists the election has not been postponed: also says there is no election to be postponed.
- SLPP Rebel MP Dullas Alahapperuma questions why the UNP handed over nominations to the LG elections if the election was not legally declared as stated by President Ranil Wickremesinghe: claims what was said by the President in Parliament was completely false: also says it is now clear who was behind the move to postpone the LG polls.
- Supreme Court postpones hearing of the petition filed by a Retired Colonel of the Army, seeking a postponement of the LG Elections, until 11th May.
- SJB MP Mayantha Dissanayaka appointed Chairman of the Committee on Public Finance: Harsha Silva throws tantrum in Parliament after he is overlooked for the position: SLPP MP Professor Ranjith Bandara elected Chairman of COPE, defeating SJB MP Eran Wickramaratne by 16 votes to 7.
- Attorney General informs Supreme Court that President Ranil Wickremesinghe has decided he will not sign the implementation of capital punishment ordered by any Court.
- Police arrest IUSF Convener Wasantha Mudalige and 55 others for forcibly entering the Education Ministry in Battaramulla: group includes student Buddhist monks of the Buddhist and Pali University in Pitipana.
- Secretary, Unawatuna Hoteliers’ Assn Sumith Ubesiri says hoteliers are struggling to survive after the recent electricity tariff hike: also says the present circumstances are so bleak they will be forced to decide shortly whether to continue in the industry or not.
- Cabinet reviews progress of 261 large-scale development projects: notes that progress of majority of projects has been very slow due to the suspension of foreign currency tied to particular developments: also notes difficulties in securing the necessary money due to the economic crisis.
- Sri Lanka’s Ambassador to Qatar Mafaz Mohideen says Qatar and Sri Lanka have embarked on significant developments in bilateral relations this year: also says the two countries are seeking ways to further boost cooperation.
- Sports Minister Roshan Ranasinghe appoints a 10-member Expert Committee to prepare a new Constitution for Sri Lanka Cricket: meanwhile, Sri Lanka Cricket earns a net profit of Rs.6.3 bn in 2022, it’s highest annual net income in history.
The President tells Parliament his priority is building the economy and not politics
Although the opposition has accused the government of postponing the elections, a fixed date has not yet been announced for holding an election.
Participating in the parliamentary debate held today (23), President Ranil Wickremesinghe stated that the Opposition’s accusations of postponing the elections are baseless as the Election Commission has not officially announced a fixed date for the election.
He further stated that his priority is not politics but building the economy, emphasizing that the survival of the country is dependent on a strong economy.
Following is the full speech delivered by the President in Parliament;
The Opposition has requested a division on the Resolution under the Essential Public Services Act, which is being debated, and this is not a typical occurrence. Electricity provision is an essential service, and I fail to understand why the Opposition is opposing it. Are they against uninterrupted electricity provision? Or do they object to electricity altogether? If the Opposition wishes to debate this matter, we are open to it. However, they had requested a debate on the postponement of the election, which is not possible as there is no election to postpone.
Initially, I did not intend to participate in this debate as I am not inclined to discuss politics. However, the Election Commission, which has been summoned before the court, has reportedly submitted an affidavit stating that an election cannot be held. In light of this development, I feel compelled to speak up on behalf of the Secretary to the Finance Ministry and others under me, as it is unfair to them.
The Secretary to the Treasury has informed the Commission that they are unable to provide the necessary funds to conduct the election.
I must clarify that the statement claiming that the Secretary to the Treasury informed the Election Commission that they were unable to provide funds for the election is false. In fact, on December 14, I personally informed the Election Commission members about the economic situation of the country and instructed them to hold an election when the number of members of the local government election was reduced to 5000. This was because holding an election at that time would not have been healthy for the economy. I took this step as I believed it was my obligation, given that this is not an ordinary Commission but a caretaker Commission.
It is worth noting that under the transitional provisions of the 21st Amendment (In Part 3 under the Interim Provisions) to the Constitution, which was passed by the House, the Chairman and members of the Election Commission ceased to function from the day that this Act came into operation. This was on October 31, when the Speaker endorsed it. However, the members can continue to discharge their duties in accordance with the constitution before the day they ceased to function. This is not an ordinary Commission, but rather a temporary Commission that is accountable to the Parliament. As such, they should have discussed the matter with the House, which has not been done, and this is a defect.
As the President, I personally informed the Election Commission about the situation, and there was no need for the Secretary to do so. On January 5, the Attorney General, the Prime Minister, and I met with the members of the Commission, not to discuss the postponement of the election, but because there was a division within the Commission. While two members had decided to hold the election on December 23, one had not decided on a date for calling nominations, and another had a wavering view. Additionally, one of the members was in the hospital. It was at this meeting that the Attorney General made a statement.
The Attorney General instructed them to come to one decision. Then they consulted Saliya Peiris. The members told me that the Commission cannot consult an attorney who engages in politics but someone who is impartial. I said that I would not intervene in it but I am of the view that if they needed they could consult an attorney who has not engaged in party politics. But they consulted an attorney who said that the government did not have power. In my opinion, it would have been better if they had consulted an attorney from SJB or JVP.
During the formulation of the Budget proposal, the Election Commission estimated that the election would cost Rs 10 billion. However, on the 9th, they sent a letter to the Director General stating that they only required liquid cash Rs 6 billion. Despite the fact that inflation should have increased the cost. As a result, the Ministry began to investigate the estimates as the Election Commission demanded less money while the Police demanded more. The other departments have yet to submit their estimates, but funds have been allocated for the election. This was a fundamental issue. The Finance Ministry does not need to respond to them. Chief Accountant G R A K Gamalath signed on behalf of the Election Commissioner General, which no one has the authority to do.
Section 104 E 6 states that the Commission may delegate any power, duty, or function of the Commission or Commissioner-General of Elections to another officer of the Commission, who shall exercise, perform, and discharge such power, duty, or function subject to the direction and control of the Commission. They did not mention that they received authority from 104 E 6 (the Commission). On January 9, the Commissioner wrote in a letter that cash had not been provided based on their request to begin the initial steps of the election. If the cash had been provided, disciplinary action could have been taken against the officer who provided the money. The officer who sent the letter had not been given the authority to do so. If it had been provided, anyone could sue the Director General for violating human rights. He could have been punished by the Public Service Commission. The Chairman sent a letter on February 3, but in any letter, they did not mention that it was a decision of the Commission.
On February 10, it was reported that two political parties had filed cases seeking to prevent the election, but the Election Commission had already taken initial steps. However, it has been found that the Supreme Court did not make such a decision. Sanjeewa Jayawardena PC referred to a journal entry from January 18, 2023, where Saliya Peiris, President’s Counsel representing the first to fifth respondents, informed the court that the Election Commission had taken steps to call for local authority elections in accordance with the local authorities elections ordinance and would continue to do so in accordance with the law. Based on this, Peiris submitted that there was no need to issue a writ mandamus and requested that the proceedings be terminated. The petitioners themselves stated that they did not need a mandamus writ, so there was nothing for the court to do. Neripulle (PC), representing the sixth respondent, the Prime Minister, stated that no relief was sought against him, even though he was named in the petition.
According to my understanding, there is no official date set for the election yet, despite rumours that it may be on March 09. It’s important to note that according to Section 104, a quorum of three members is required for any meeting of the Commission.
On January 22, Nimal Punchihewa, the Chairman of the Election Commission, reportedly told the Sunday Times that the three commissioners had been contacted virtually via Zoom and their consent had been obtained. The 5th Commissioner, M.M. Mohommed, was present at the Commission office.
That means those two, the Chairman and M.M. Mohamed, took the decision. He said himself that he took the approval of the others. If you asked those three, they will not maintain the same view. I have proof to prove it. Then officially, they haven’t taken a decision to hold the election. So if the money was given to them, I will have to remove my Secretary and make a complaint before the Police against him. The same will happen to the Government Printer too. They all will lose their jobs.
We don’t need to postpone the election, but we don’t have money for it. If we need, we can discuss and come to a decision, but for the moment, we don’t have money. On the other hand, there is no election at hand as well. So, what have we got to do? The Commission is answerable to the Parliament. The Parliament has asked to appoint a select committee on this matter. So, I request to appoint it, record all and take the report to the Supreme Court. According to section 4 of the constitution, the financial power is vested in the Parliament. After the 1688 Revolution according to the Magna Carta Agreement, all monetary powers vested in Parliament. Therefore, give that report to the Supreme Court through a selection committee.
The funds allocated in the budget cannot be given at once. Also it is not mentioned anywhere about a specific date for these funds to be given. The allocations made by the budget should be spent by the end of the year. But that could be done only if the expected revenue is received. Otherwise, we have to seek approval from the House for the Central Bank to print money. But, according to IMF agreement we can’t print money. The other matter is that we don’t postpone an election by a circular. Officially we can’t hold an election as there was no quorum at the time of the decision was taken.
So the officials who would provide money will have to answer.
In any of them there is no direction. There cannot be made directions as there is no election. So first decide that you need an election or tell the Court that you can’t hold an election at this occasion. We have worked according to law.
We acted in accordance with the law. We have decided not to use tax funds until the Paris club agreement on debt restructuring with China and India, and a decision from the International Monetary Fund are reached.
The economy is my top priority. We will not have a country if the economy does not develop. I ask this House one question. Is it possible to keep the constitution without losing the country? Only if the country is protected can the constitution be protected.
I have also informed the Prime Minister to bring the proposal of the Select Committee on those responsible for the economic destruction proposed by the opposition in the Parliament in the 03rd week of March. The government supports it. Also, the opposition proposed to change the Election Commission. We will support that too.
President Directs Officials to travel Economy Class for official travel abroad amidst the current economic crisis
In a bid to maximize the use of government funds and ensure that resources are utilized efficiently, President’s Secretary Mr. Saman Ekanayake has issued a directive on the instructions of President Ranil Wickremesinghe, requiring officials purchasing airline tickets for official travel abroad to book Economy Class tickets.
This directive will take effect from March 1, 2023, and replaces all previous circulars and instructions related to this matter.
According to the new directive, officials such as the Hon. Chief Justice, Hon. Justices of the Supreme Court, Chairman of the Court of Appeal, and Hon. Justices of the Court of Appeal are exempt from booking Economy Class tickets. However, if an officer needs to travel Business Class, they may do so at their own expense, paying the difference between an Economy and Business Class ticket. The directive also states that exceptions to this rule require prior approval, based on sufficient justification.
The President’s directive aims to ensure that government funds are used only for essential purposes and that resources are utilized efficiently. By limiting the use of Business Class tickets, the government can save a significant amount of money while still enabling officials to travel for official purposes.
All relevant agencies and organizations under the purview of the directive, including Heads of Provincial Ministries, Departments, State Corporations, and Statutory Organizations, have been instructed to comply with the new provisions. Officials are also advised to seek prior approval if they believe they have a sufficient justification for an exception to the rule.
This directive comes amidst the current economic and financial challenges facing the country, and it is expected to help alleviate some of the pressure on government funds. It is hoped that by implementing this directive, the government can achieve its goals of financial prudence and efficient resource utilization.
President’s Media Division (PMD)
India’s troubled Adani invests in bankrupt Sri Lanka
Cash-strapped Sri Lanka on Thursday announced its first major foreign investment since it declared bankruptcy, approving a $442 million wind power project by India’s scandal-hit Adani group.
Sri Lanka’s Board of Investment said Adani Green Energy, part of the business empire of controversial Indian tycoon Gautam Adani, will set up two wind farms in the island’s north.
The total investment will reach $442 million and the two plants will be supplying power to the national grid “by 2025”, the BOI said in a statement.
The project comes after Sri Lanka awarded Adani a $700 million strategic port terminal project in Colombo in 2021.
That concession was widely seen as a bid to address New Delhi’s growing concern over China’s expanding influence in the region – Adani had been nominated as the contractor by the Indian government.
The firm is building a 1.4-kilometre, 20-metre deep jetty right next to a Chinese-operated terminal at Colombo harbour, the only deep-sea container port between Dubai and Singapore.
Energy minister Kanchana Wijesekera said he met with Adani officials in Colombo on Wednesday to finalise the wind farm project.
“We expect the power plants to be commissioned by December 2024,” he said.
The development comes after a US investment firm last month accused Adani’s companies of accounting fraud and price manipulation, triggering a rout that saw $120 billion wiped off the group’s market capitalisation.
Adani denies the allegations.
A Chinese firm was awarded a $12 million Asian Development Bank-funded project to build three wind farms on islands in the Palk Strait between India and Sri Lanka in 2019, but it was cancelled after objections from New Delhi.
China is Sri Lanka’s largest official lender, accounting for 52 percent of bilateral credit. Colombo is awaiting financial assurances from Beijing to unlock a $2.9 billion bailout from the International Monetary Fund.
ECONOMIC TIMES
Areca nut farmers prepare to hold a massive protest?
On February 24, 2023, preparations are underway to hold a massive demonstration in front of the Ministry of Commerce and the Department of Commerce.
Areca nut farmers, collectors, middlemen and non-smuggler local exporters all over the country are preparing to hold this protest. In particular, three months have passed since the export of this areca nut was stopped. Due to the huge economic crisis, the areca nut farmers and a large number of people associated with that movement have become extremely helpless.
Those people have expressed their displeasure with the current Minister of Commerce, Nalin Fernando, and the Department of Commerce, which has high-ranking corrupt officials. They are asking for support for their agitation regardless of color or party. According to the exporters, the country will lose approximately 50 million US dollars per month and 500 million dollars annually by stopping the export of Areca nuts.
They are of the opinion that this decision was taken at a time when the country does not have dollars, which is a political conspiracy.