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Government’s Ultimatum to Investors for Resuming Halted Projects in Colombo

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State Minister of Urban Development & Housing, Arundika Fernando, announced that steps will be taken to offer commercially valuable lands in major cities across the country to investors as part of an initiative to contribute to the national economy. The government has also reached out to investors, urging them to resume projects on state-owned lands in Colombo that were halted midway due to economic challenges faced by the nation.

During a press conference organized by the Presidential Media Centre on July 21, Minister Fernando emphasized the government’s commitment to revive suspended projects and strengthen the economy. The investors have been given an ultimatum to decide on resuming their projects by the end of the following month. Failure to comply could lead to the government taking over the uncompleted projects and assigning them to new investors.

The state minister highlighted the decision to distribute properties with commercial worth, particularly in major cities like Colombo, to new investors. Notably, the government plans to safeguard employee rights and uphold conventions while improving the lucrative Hilton Hotel to bolster the country’s economy. Waters Edge Hotel in Battaramulla is also slated for a transfer of ownership to new investors.

Additionally, 24 coastal regions designated as tourist destinations will be accessible to investors to promote national economic growth. Temporary construction rights will be awarded to new investors with a focus on developing these zones into attractive tourist destinations with beach activities, similar to those seen in other countries.

Furthermore, under President Ranil Wickremesinghe’s guidance, Colombo, Ella, Nuwara Eliya, Kandy, and Trincomalee are being developed as favorable tourist attraction areas.

The government is implementing several projects with the support of the Asian Development Bank and government agencies like the Urban Development Authority. Among these projects is the Aruwakkalu Scientific Sanitary Garbage Dump, part of the Colombo Solid Waste Management initiative, which is set to be completed and handed over to the public by the end of January next year.

SL discusses X-Press Pearl disaster claims with ship-owner, insurers in Singapore.

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By: Staff Writer

Colombo (LNW): Sri Lankan delegation holds fruitful discussions with X-Press Pearl ship-owner, insurers in Singapore more than two years after the sinking of the cargo ship the X-Press Pearl, and still trying to claim compensation for the environmental damage caused to the country in an arbitration case filed in that country.

A nine-member delegation from Sri Lanka, led by the Attorney General, engaged in productive discussions with lawyers representing the interests of the X-Press Pearl ship-owner and their insurers this week, a statement issued by the President’s Media Division (PMD) noted.

It added that the meetings held on the 18 and 19 July, were organised in response to a request from the lawyers on behalf of their clients following the Sri Lankan Government’s claims action filed in Singapore back in April.

During the course of these discussions, both parties delved into various critical aspects related to the incident and its aftermath.

A significant focus was directed towards assessing the outstanding interim claims presented by the Marine Environment Protection Authority (MEPA) and the Ministry of Fisheries from the Government of Sri Lanka.

In response to the concerns raised by the Sri Lankan delegation, the ship-owner interests’ insurers provided assurance that they would promptly and efficiently evaluate these claims.

This reassurance comes as a positive development for the Sri Lankan Government, which has been actively seeking resolution and compensation for the environmental and economic impacts caused by the X-Press Pearl ship’s unfortunate incident.

The X-Press Pearl, which caught fire and sank off the coast of Sri Lanka on 20 May 2021, resulted in significant environmental damage and financial losses for the region.

The marine disaster which took place in May 2021 is considered to be one of the ‘worst marine disasters in the world’. Recent research by the Center of Environmental Justice (CEJ) found heavy pollution in the marine environment around the X-press Pearl shipwreck.

The incident drew international attention and prompted the Government of Sri Lanka to take legal action seeking compensation for the damages caused.

The recent meetings in Singapore mark a step forward in the negotiation process, as both parties work towards finding a resolution and addressing the aftermath of the maritime disaster.

The Sri Lankan delegation’s efforts to hold constructive discussions with the ship-owner interests’ lawyers and insurers demonstrate a commitment to finding a fair and equitable solution.

As the assessments of the outstanding interim claims proceed, it remains to be seen how the discussions will further unfold.

Both the Government of Sri Lanka and the ship-owner interests are expected to continue their engagement in search of a comprehensive resolution that will address the environmental, social, and economic implications stemming from the X-Press Pearl incident.

Ranil Wickremesinghe’s Visit to India Strengthens Bilateral Ties and Forges a Vision for the Future

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During his first official visit to India after assuming the presidency, President Ranil Wickremesinghe conveyed a firm commitment to fortify the bilateral relationship between India and Sri Lanka. The visit proved to be of great significance as it served to strengthen diplomatic ties and lay the groundwork for a joint vision for the future.

Addressing an esteemed gathering that included Prime Minister Narendra Modi and dignitaries from both nations, President Wickremesinghe expressed gratitude for the warm hospitality extended during his visit. He acknowledged the remarkable progress India has made under Prime Minister Modi’s leadership, praising the country’s advancements in economic, infrastructure, and technological domains, which are positively impacting the entire region, including the Indian Ocean region.

In return, President Wickremesinghe briefed Prime Minister Modi about the challenges faced by Sri Lanka in the past year and the comprehensive reform measures undertaken to overcome them. He conveyed profound appreciation for the solidarity and support extended by India during Sri Lanka’s difficult times.

The leaders engaged in discussions focused on fostering economic recovery and sustainable growth in Sri Lanka. President Wickremesinghe outlined his vision, which includes proposals for reconciliation, power-sharing through devolution, and a Northern development plan. He extended an invitation to all party leaders to work towards consensus and national unity on these important measures.

Both leaders emphasized the significance of enhanced connectivity between India and Sri Lanka to bolster economic partnership. Recognizing the deep-rooted historical, cultural, and commercial ties between the two countries, they agreed that the present moment presents an opportune time to embark on a joint vision for the future.

The Joint Vision forged during this momentous occasion is set to reinforce trust, strengthen geographical and civilizational links, and propel the Indo-Lanka relationship to new heights over the next 25 years. The discussions held during President Wickremesinghe’s visit are poised to pave the way for a prosperous and secure future for the people of both India and Sri Lanka, marking a crucial milestone in their bilateral relations.

Sri Lanka Original Narrative Summary: 22/07

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  1. President Ranil Wickremasinghe grants a pardon to former LTTEer Selliah Navaratnam, 69 years, who was sentenced to 200 years in prison after being found guilty over the 1996 Central Bank bombing that killed 91 people: another former LTTEer S. Sanmugarajah, who was serving a life sentence, also granted a Presidential pardon: both released from prison on 18th July 23.
  2. President Ranil Wickremesinghe engages in bilateral talks with Indian PM Narendra Modi: asserts SL is steadfastly pursuing economic reforms which are showing positive results in stabilizing the country: says the measures taken have led to a “resurgence of confidence” both within the nation & from external observers in the progress of Sri Lanka: also says the ferry services between Talaimannar-Rameswaram & Nagapattinam-Kankesanthurai will add more impetus to sea travel between India & SL.
  3. The SJB submits No-Confidence Motion against Minister of Health Keheliya Rambukwella to the Speaker.
  4. Dept of Census and Statistics says Inflation (as per the NCPI) has recorded 10.8% in June 2023 following the inflation of 58.9% in June 2022: accordingly, a massive increase in cost of living of 69.7% has been officially recorded since June 2021.
  5. Finance State Minister Shehan Semasinghe asserts Sri Lanka could exit bankruptcy by September 2023: says with the implementation of the Anti-Corruption Act, Sri Lanka will be transformed into a corruption-free country: further asserts that receiving the GSP+ tax relief for another 4 years is a big victory, and that international confidence has been confirmed about the economic stability of the country: claims “we are on the right track”.
  6. CB Governor Dr. Nandalal Weerasinghe says it is essential for Sri Lanka to ensure it goes ahead with the current reform efforts, as otherwise, it runs the risk of having to face another Domestic Debt Optimisation exercise: asserts that the current DDO is strong and consistent with the expectations.
  7. State Minister of Urban Development and Housing Arundika Fernando says final notice has been given to investors related to the resumption of projects being carried out on lands owned by the Govt in Colombo: warns that if investors do not take steps to complete the projects, the lands will be taken over by the Govt and given to new investors.
  8. Education Minister Susil Premajayanth says 255 members of academic staff and 153 non-academic staff of the state universities have vacated their posts during the last one and a half years without tendering their resignations officially: also says 83 academic staff members and 277 non-academic staff members have officially resigned from all 17 universities during the same period.
  9. The report of the Parliament Select Committee to Make Suitable Recommendations for the Expansion of Higher Education Opportunities in SL recommends the replacement of the University Grants Commission and the Vocational Training Authority by an independent National Higher Education Commission.
  10. Police use water cannons to disperse student Buddhist monks protesting near Town Hall.

Banking (Special Provisions) Bill Passed with Amendments in Sri Lankan Parliament

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On July 21, the Parliament of Sri Lanka witnessed the successful passage of the Banking (Special Provisions) Bill, accompanied by amendments to the original text. The legislative process saw a comprehensive debate on the Second Reading of the Bill, which took place from 10.30 a.m. to 4.45 p.m.

Following the deliberations, the Bill was further refined with the incorporation of relevant amendments during the Committee Stage held subsequently. The amendments addressed key concerns and considerations raised during the parliamentary discussions, ensuring a more robust and effective framework for the special provisions related to banking.

The passage of the Banking (Special Provisions) Bill is a significant development in the country’s financial sector, aimed at enhancing regulatory measures and safeguarding the stability of the banking industry.

Turkish Ambassador meets Acting Defence Minister

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Her Excellency R. Demet Sekercioglu, Ambassador of Turkey for Sri Lanka, made a courtesy call on Acting Minister of Defence Hon. Premitha Bandara Tennakoon at the State Ministry of Defence today (Jul 21).

Minister Tennakoon held a cordial discussion with the Ambassador following a warm reception at his office.

Matters of bilateral importance and mutual relevance were discussed during the meeting held between Minister Tennakoon and H.E. Sekercioglu.

During the occasion, the Minister presented a memento to the Turkish Ambassador to mark the occasion.

Deputy Chief of Staff Navy and Director General – Operations Rear Admiral Pradeep Rathnayake was also present at the occasion.

SL Consulate General in Dubai celebrates the Richness of Sri Lankan Products at the “Best of Sri Lanka” Lulu Hypermarket Campaign

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The Consul General-designate Alexi Gunasekera attended the inauguration ceremony of “Best of Sri Lanka”, a Sri Lankan product promotion campaign at Lulu Hypermarket Al Barsha on 13 of July 2023.

Spanning over the course of one week from 13 to 19 July 2023, the “Best of Sri Lanka” campaign aims to introduce the unique flavours, exceptional quality and cultural heritage of Sri Lanka to the discerning residents of the UAE. The promotion features a wide array of Sri Lankan products, including coconut products, fruits, vegetables, grains, confectionaries and king coconut.

The campaign created a vibrant atmosphere within the hypermarket, with colourful displays and interactive product demonstrations. The customers have the opportunity to savour traditional Sri Lankan cuisine providing a truly immersive cultural experience.

The promotion not only boosts trade between Sri Lanka and the UAE but also paves the way for future collaborations between Lulu Hypermarket and Sri Lankan exporters, ensuring a wider reach for Sri Lanka’s exceptional products among the multinational community in the UAE.

The Consul General expressed his gratitude towards Lulu Hypermarket and YAS Lanka PVT LTD for organizing the event and he emphasized the importance of diversifying the exports aligning with the vision of the President Ranil Wickremesinghe. He requested the Lulu management to organise a delegation from the Lulu retail chain to visit Sri Lanka to identify potential products to be promoted in the UAE.  He further stated that the Consulate General will closely work together with the Embassy of Sri Lanka in Abu Dhabi and the business community in the UAE to create more opportunities for Sri Lankan exports in the UAE market, especially in Dubai, which is considered as a transit hub to capture other markets in the Middle East.

Lulu Hypermarket is the largest retail chain in the UAE with over 98 stores in Dubai and one of the largest hypermarket chains in the Middle East.

Consulate General of Sri Lanka

Dubai

17 July 2023

SRI LANKA: The caste-based culture is still the key obstacle for development in Sri Lanka

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By Basil Fernando

Over a long period, many erudite scholars and critics have engaged with the issue of the extent to which caste remained a relevant factor in understanding social development in Sri Lanka. One could sum up broadly the overwhelming view among such writers as being that while caste influences still remain in some way or the other, the predominant factor relating to changes in Sri Lanka is not caste but class. 

The starting point of this article is that while purely on theoretical considerations about the new economic relationships that were introduced in Sri Lanka, particularly since the occupation of coastal areas by the Dutch, and then, particularly during the period of British rule, this assessment about class becoming a more important factor than caste may seem possible, yet, in actual fact, caste still plays a far more predominant role in all the affairs of Sri Lanka than the class factor. To clarify the differences of views it may be useful to re-state what in most previous writings was considered as caste. The general approach to caste has been the classification of people into various caste groupings which were mostly named in terms of occupations. For example, following two tables give the classification of caste amongst the Sinhala community and the Tamil community as follows:-

CasteOccupational DesignationPercentage
BadahalaPotters.9
BathgamaNon-specific1.8
BeravaDrummers1.6
DuravaTappers of the coconut palm5.6
GoyigamaCultivators54.3
HenaWashers3.4
Hinna*Washers*
Hunu*Lime-burners*
KaravaFishers15.7
NavandannaArtisans3.5
Oli*Dancers*
SalagamaCinnamon peelers7.5
VahumpuraJaggery makers3

*In the 1824 census, Hinna, Hunu and Oli being numerically small castes were classed with “others” to form 2.7%

NameTraditional OccupationPercentage of Jaffna’s Tamil population
AmbattarBarber0.9
BrahmanTemple priest0.7
KaraiyarDeep sea fisher10
KoviyarDomestic servant7
NalavarPraedial labour9
ParaiyarDrummer2.7
PallarPraedial labour9
TaccarCarpenter2
TattarGoldsmith0.6
VannarWasher1.5
VellalarFarmer50  

(The above tables have been taken from K. Jayawardena’s Nobodies to Somebodies: The Rise of the Colonial Bourgeoisie in Sri Lanka, 2000, Social Scientists’ Association and Sanjiva Books, Colombo, pages 164-165)

Trying to describe caste in terms of caste groupings as shown above does not reveal the principles on which the entire caste system was based. These principles were universal and apply to all the affairs of society. They also apply to all different caste groupings whether some castes were considered superior or others inferior. Both of these groups were held together by a set of common universal principles. The universal principles on which the caste system is based are what need to be discussed in understanding caste as a worldview that applies to everything and everyone who lived in caste based societies. 

It is also necessary to understand these universal principles because when such principles have been the foundation of a social order for a very long period of time, that worldview also enters into the minds and psyches of the people of such a society. Over a long period of repetitious behaviours, these principles go on to create the deep seated attitudes that govern not only the external behaviour of the people but also their interior make up. It is this aspect of the interior make up of a caste based society that has not been studied to this author’s knowledge in Sri Lanka. Thus, the justification of this paper is to initiate an approach to the study of the influence of caste in Sri Lanka, which is relevant not only to understanding the long period of caste history but also the present and for quite some time, even what is likely to happen in the future. 
 

Interiorisation of caste principles
 

Caste is rooted on two main premises or principles. The first of these principles is the prohibition against social mobility. The second principle is disproportionate and unequal punishments. Both of these principles are based on the apriori notion of the validity of inequality over equality. From around 8th Century Anno Domini to the arrival of western influences, the principle against social mobility remained sacrosanct in Sri Lanka. It took the form of fixing the social position of a person on the basis of his or her birth. That the social position to which one was born into in terms of the occupation of the patriarch was an unalterable principle. Thus, the whole idea of individual talent, individual achievements, and the acquisition of special knowledge or skills, all had to be confined to and limited to the operation of this principle of the inalterability of the status or position. 

That principle was by extension applied also to relationships. All blood relationships had to be kept within the caste fixed boundaries. Thus, interchanges which affect not only the psychological make-up of the people but also genetically, were entrenched in terms of these caste based limitations. 

Perhaps the most important lasting impact of these limitations was the psychological and social habits that got formed under this system and which got embedded due to long years of the repeated practice of habits, repeated affirmations of threats, and repeated reminders of the social boundaries, thus becoming part of the psyche of the Sri Lankan people as a whole. Such psychological rooting does not get removed purely due to certain changes that may occur in social relationships due to commercial and other considerations unless a large scale assault on such past psychological habits have been made over a long period of time which are of superior vitality. Because the western influences and the beginning of mercantile, commercial and other limited capital developments that have taken place in Sri Lanka, remained of a superficial nature, they lacked the vitality of an economic, social and cultural revolution that would be able to fundamentally alter the nature of the attitudes formed on the basis of the practices rooted in the prohibition against social mobility.
 

The second most important universal principle on which the caste system and the social organisation based on caste is founded is the uneven and disproportionate use of punishment.
 

This principle simply means that if a person belongs to a caste group graded as “inferior†in law, the punishment meted out to him or her for a transgression which may even seem small can be the highest punishment, meaning, death itself. And, this punishment can not only be meted out to the particular transgressor but also to his or her clan or the caste group. On the other hand, if a person is graded “superior†within the caste hierarchy, even the gravest crime can go unpunished or the person may be exposed only for some types of ritual purifications as punishment. Besides, while those who were considered superior had the unlimited right to punish those considered inferior, the inferiors did not have any such right to make any such claims of having being wronged by their “superiors”. This in short, is the principle on which the entire criminology was based during the period that the Sri Lankan society was organised in terms of caste. 

In the application of the principle of uneven and disproportionate punishment, those considered superior had the absolute right to lay down all the rules that will be observed by those who were considered inferiors. This went on to the issues about what work they do, what exchanges they could engage in and to what extent the superiors could exploit labour and services and the right to determine as they wished what reward or punishment that the inferiors deserved. The superior’s right of property extended to everything and this included inhabitants of the houses of the so called inferiors. Absolute obedience was the price to be paid if one were to escape from extraordinary punishments. The superiors could determine even the manner in which the so called inferiors had to dress. For example, it was a widespread habit that the males and in some places even women were not allowed to wear anything above their waists. 

Prohibition against education, which followed from the principle of prohibition against social mobility, was enforced through the application of the principle of uneven and disproportionate punishment. Education was seen as an attempt by those who were considered inferiors to acquire habits through which they may equal or even surpass their superiors. 
 

The creation of a permanent condition of a fear psychosis
 

The caste society could assure its permanence only through a persistent use of disproportionate punishment over a long period of time, long enough to create the fear embedded into all aspects of the mind and soul of those considered inferiors so that they would voluntarily submit themselves to whatever conditions of depravation or limitations prescribed for them by their superiors. 

It is this factor that needs to be understood in the loss of power of resistance that has over and over again manifested itself in Sri Lanka over a long period of time. On the other hand, whenever there is a manifestation of a resistance and protest, those who hold authority in Sri Lanka, even after Independence, have shown a capacity for the use of extraordinary forms of cruelty against its own people. For example, in recent decades, Sri Lanka is nearly at the top of the list of countries where enforced disappearances have been used as a punishment directly or indirectly authorised by the State itself. Enforced disappearances mean, as the studies have revealed in Sri Lanka, in overwhelmingly most of the cases, the killing of people after arrest. Though the killing of a prisoner or a person taken into State custody is considered in modern international law as a heinous crime, there is no strong condemnation of this practice by the Sri Lankan State despite global and local condemnations. Torture and cruel and inhuman treatment are very much an integral part of the policing in Sri Lanka. Though vast bodies of documentation has been done on these matters, there is no change of this practice and the Supreme Court of Sri Lanka had to declare many times about the frequency of the practice of torture and also about repeated practice of extrajudicial killings. 

Thus, the idea of uneven and disproportionate punishment is one of the major characteristics of Sri Lanka’s system of justice even to date. There is no indication at all that there would be any change about this matter in the near future. 

The caste based society rooted in the two principles mentioned above has absolutely rejected any foundational notion of justice. In the caste based culture of Sri Lanka, there is no room for the idea of justice. Today, more than ever, there is almost universal consensus of a completely failed system of justice in Sri Lanka. The policing system has come under the severest forms of criticism, from among the people, even from the Parliament and this criticism has got expressed even through the Inspector General of Police himself. Without doubt, this is an atrocious system. In many parts of the country, some Police officers are considered as being part and parcel of serious criminal activity in the country. Even in the debate about the selection of an IGP, the question that has come to the forefront is about the alleged criminal records of some of the contenders to this position. On the other hand, the once prestigious Attorney General’s Department has lost much of its prestige. There are public criticisms of it being driven by extraneous factors. The Constitution itself has undermined the independent role of the Judiciary and many statutory laws have been used in order to deprive the Judiciary of certain powers to intervene to protect the liberty of the individual. It is not the purpose here to go into a detailed statement of the present state of the justice system in Sri Lanka. The purpose of the reference to the present is only to demonstrate that the principles on which the caste system was based still operate powerfully within the present circumstances. The universal notions of justice find very little expression in Sri Lanka even despite over 200 years of attempts to introduce such a universally valid principle. The caste habits and caste consciousness have prevailed despite of all such attempts. 

The idea of the freedom of speech simply could not exist in a society which was founded on the principles of prohibition against social mobility and where uneven and disproportionate punishment prevailed. In the graded humanity that is called the caste system, there was no room at all for those who were considered lesser grades to speak back to that small minority of people who considered themselves as superiors. Any attempt to transgress this rule against the freedom of speech resulted in death or other severe punishments. This habit has been continued by so called “big families” even till very recently. Now, this practice is continued by the State itself utilising the Police and security for this purpose. This aspect of the continuity of caste habits in the attempts to suppress the freedoms of expression, association and assembly could itself constitute a voluminous study. 

The caste based society on the same basis of the two principles mentioned above did not have any notion of corruption. Whatever “superiors” wanted, they could take and there was no way to oppose this. Any opposition would have led to more serious forms of punishments. Thus, culturally speaking, from the time the caste system was introduced into Sri Lanka, there has been no notion of corruption as a socially condemnable offence. In the interior mind and psyche of the Sri Lankan people in general (with limited exceptions), the tolerance of corruption is deep rooted. That is the reason why within a short period after Independence, corruption crept back into the State apparatus as well as to other aspects of society which by now has created the worst economic and social catastrophe in Sri Lanka. While fair minded and liberal persons may be shocked and angry about the extent of corruption that has spread like a malignant cancer, those in powerful positions pay only lip service against corruption. It is most unlikely that there will be a determined attempt to minimise if not eliminate corruption despite this being one of the demands of the International Monetary Fund in its recent negotiations. Simply, the will and the psychological make-up necessary to take up such a position do not exist in Sri Lanka. 

Above all, the greatest barrier to the development of the adoption of rational principles, the development of democracy, the rule of law and fair and humane relationships between the people in Sri Lanka is the persistent influence of caste consciousness which is a severe hindrance. There is also the influence of a long history of habits based on and influenced by caste based principles.

This paper is only just a beginning. It is an attempt to direct attention to a factor that is missed in the discussion in understanding the catastrophe that Sri Lanka is in today. 

(Asian Human Rights Commission)

SL Consul General to Dubai and the Northern Emirates presents Letter of Commission

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Consul General to Dubai and the Northern Emirates, Alexi Gunasekera, presented the Letter of Commission to the Director of the Office of the Foreign Affairs of the United Arab Emirates in Dubai Sheikh Maktoum Bin Butti Al Maktoum on 18 July 2023.

During the ceremony, the Consul General underscored the importance of fostering robust diplomatic ties between Sri Lanka and the UAE, recognizing the immense potential for collaboration in the areas of trade, investment, tourism, and cultural exchange among others. He also stated that Sri Lanka offers lucrative investment opportunities, particularly in the dynamic landscape of Port City, IT BPO, renewable energy etc. As Sri Lanka and the UAE continue to foster strong ties, the Consul General expressed his utmost confidence in uplifting existing Sri Lanka and the UAE relations to a new height during his tenure.

While congratulating the newly appointed Consul General, the Director of the Office of the Ministry of Foreign Affairs in Dubai emphasized that Dubai being the hub in the region, promoting Sri Lanka – UAE trade relations would give a spillover effect to penetrate the other Gulf countries. He also discussed on Sri Lanka tea and precious gems and stated that a considerable scope for collaboration between the UAE and Sri Lanka is available in these sectors. Highlighting the potential cooperation in a broad spectrum of fields, the Director pointed out the necessity of entering into a Comprehensive Economic Partnership Agreement (CEPA) with Sri Lanka in line with the UAE’s goal of deepening ties with strategic partners around the world.

The Director assures that he remains committed to providing the fullest support to the Consulate General in its every effort to jointly promote the comprehensive and rapid development of the bilateral relationship between both countries.

Consulate General of Sri Lanka

Dubai

21 July 2023

Sri Lanka’s Inflation Sees Decrease, Recording 10.8% in June 2023

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In a noteworthy development, Sri Lanka’s inflation, as measured by the National Consumer Price Index (NCPI), registered a significant decline in June 2023. The latest figures released by the Department of Census and Statistics (DCS) indicate that inflation stood at 10.8% for the mentioned month, a substantial drop compared to the headline inflation rate of 22.1% recorded in May 2023.

The statistics from the DCS reveal that the changes in the NCPI on a month-on-month basis were driven by a 0.44% increase in food items and a 0.3% decrease in non-food items. It is noteworthy that the recorded inflation for June 2023 was primarily influenced by higher price levels in both food and non-food categories when compared to June 2022.

This decline in inflation could have significant implications for the country’s economy and may be indicative of changing consumer spending patterns and price dynamics in the market. Policymakers and economic analysts will closely monitor these developments to understand the underlying factors driving the inflation fluctuations and to assess the overall economic outlook.