Mrs. Diana Gamage, the Minister of State for Tourism announced plans to launch promotional campaigns aimed at attracting 1.5 million foreign tourists to Sri Lanka by the year’s end. She emphasized the government’s commitment to ensuring the safety of tourists and mentioned initiatives such as establishing taxi associations to enhance the visitor experience.
Speaking at a press conference themed ‘Collective path to a stable country’ at the Presidential Media Centre (27), Minister Diana Gamage also highlighted the transformation of high-tourist-traffic cities into vibrant, non-stop destinations.
Mrs. Diana Gamage who further commented said:
Today, we celebrate International Tourism Day and the Ministry of Tourism has orchestrated a graceful commemoration of this occasion. In conjunction with this special day, we have proudly introduced the ‘Jaya Sri Lanka’ award, which recognizes the exceptional culinary expertise of Dr. Pabilis Silva, a journey that took him from humble beginnings to the prestigious position of head chef at the Mount Lavinia Hotel. This award holds great significance, underscoring the importance of acknowledging the often-overlooked profession of chefs in our nation.
In comparison to the previous year, we have witnessed a remarkable surge in tourist arrivals during the first nine months of this year, with approximately one million foreign visitors gracing our shores. We hold high expectations that this number will soar to 1.5 million by year-end, and accordingly, we have charted out plans for special promotional events to attract even more tourists.
With the onset of winter in Europe just two months away, we anticipate a substantial influx of tourists during the final months of the year. Our aim is to draw a significant number of visitors from European countries, including England. Furthermore, we are actively working on enticing tourists from Middle Eastern nations, with an expected influx as early as next month. Our ministry is diligently planning tailored promotional campaigns to engage these markets effectively.
Ensuring the convenience and satisfaction of tourists is paramount. Particularly in popular destinations like Ella, Nuwara Eliya, Galle and Colombo, we are committed to providing essential night-time facilities to cater to their needs. We also aspire to transform tourist-centric cities into vibrant, 24/7 hubs by revising certain regulations to facilitate tourist spending. Our goal is to create an environment where tourists are encouraged to contribute to our nation’s economic growth.
Moreover, our responsibility extends to the safety of tourists. To address this, stringent legal actions will be taken against local businesses engaging in unfair and illegal pricing practices targeting tourists. We encourage foreign visitors to act as if they plan to return to our country, fostering a positive and respectful atmosphere.
Additionally, we are in the process of establishing taxi associations to enhance the convenience and safety of tourists, thus curbing illegal activities. The Ministry of Tourism is fully dedicated to this cause and has placed it under its special attention.
The cabinet has granted approval for the hemp cultivation proposal, aimed at bolstering the country’s foreign exchange reserves.
Consequently, it is anticipated that the corresponding official gazette notification will be issued within the next two weeks.
This initiative is not merely intended to generate revenue in rupees but rather to establish a framework that generates income in dollars. To achieve this goal, the establishment of an authoritative body is envisaged, operating within investment promotion zones under a comprehensive regulatory framework.
Colombo (LNW): The Colombo Port City Economic Commission has unveiled its Comprehensive Progress Report covering the period from January to August 2023, showcasing significant strides in the development of the Colombo Port City and the finalization of legal frameworks for the Colombo Port City Special Economic Zone (SEZ).
These advancements underscore the project’s standing as a premier investment destination and a burgeoning “Gateway to South Asia.”
Functioning as the Single Window Investment Facilitator, the Commission has been steadfastly dedicated to simplifying procedures and nurturing a conducive business environment for investors, enterprises and residents alike.
It highlights that throughout the first eight months of the year, the Commission has achieved pivotal legal milestones, cementing its commitment to constructing a resilient business ecosystem within the Colombo Port City.
The Asiri Port City Hospital Lease Agreement was signed with Asiri Port City Hospital Ltd., paving the way for the execution of the Indenture of Lease and Investor Agreement, pending specific conditions, to establish a state-of-the-art hospital within the SEZ.
The Colombo Port City (Duty-Free Operations) Rules, No. 01 of 2023, were also officially published in the Gazette on 22 May, under reference number 2333/14.
Meanwhile, a strategic partnership was also forged between the Commission and the Ceylon Chamber of Commerce (CCC)-Institute for the Development of Commercial Law and Practice (ICLP) International ADR Centre (Guarantee) Ltd. (IADRC).
This collaboration designates IADRC to provide Alternate Dispute Resolution Services within the jurisdiction of Colombo Port City, accompanied by an agreement with the Ministry of Justice to establish a world-class Arbitration Centre.
The Colombo Port City Development Control Regulations (DCR) were also updated and published in the Extraordinary Gazette No. 2334/47 on 2 June.
Most notably, the Parliament of Sri Lanka approved a special incentives program, designed in consultation with the Minister of Investment Promotion, to support businesses categorized as Businesses of Strategic Importance (BSI). This program was published in Extraordinary Gazette No. 2343/60, on 4 August.
Highlighting the fast-paced progress within Colombo Port City, a number of achievements with regard to commercial development have been made.
A Cabinet Memorandum facilitated duty-free operations and designated duty-free mall operators and retailers as businesses of strategic importance.
Government Notification No. 2333/14 established Duty-Free Rules, outlining eligibility criteria for shoppers, permissible purchases, and applicable limits under the Port City Duty-Free regime. Key players, including Port City Duty-Free Ltd. and Duty-Free Retail operator One World Duty-Free (ODF) Ltd., were officially inducted as Authorized Persons.
Alongside this, interior work on the Duty-Free Mall has progressed rapidly, with site handovers to retail operators expected in December 2023.
Meanwhile, preliminary approval from the Civil Aviation Authority was secured for a check-in facility for departing passengers at the Duty-Free Mall premises itself.
Acting Finance Minister Shehan Semasinghe announced that negotiations to secure the second tranche of funding from the International Monetary Fund (IMF) are progressing positively. He emphasized that the government’s economic reform efforts are currently under evaluation by the IMF.
Furthermore, Minister Semasinghe noted that discussions to finalize the staff level agreement required for receiving the second instalment are anticipated to take place after President Ranil Wickremesinghe’s official visit to Germany.
Minister Semasinghe made these statements during a press conference held at the Presidential Media Centre yesterday (28), under the theme ‘Collective Path towards a Stable Country.
The Minister further said :
President Ranil Wickremesinghe recently held crucial discussions with the IMF team currently in Sri Lanka, during which they conducted a special assessment of the country’s economic situation. The IMF team expressed appreciation for the economic reforms undertaken thus far.
“It is expected that negotiations to secure the staff level agreement will take place after President Ranil Wickremesinghe returns to the country following his official visit to Germany. Further negotiations are scheduled under the President’s chairmanship.
The IMF team has provided a positive review of Sri Lanka’s current financial situation. We believe that, after reaching a staff level agreement, future work will proceed robustly.”
“Comparing to the previous year, the government revenue has seen a remarkable growth of 43%. The process of tax collection plays a pivotal role in bolstering government revenue. In addition to those already within the existing tax net, we are also focusing on individuals who are obligated to pay taxes. The IMF has also directed its attention towards government tax revenue.
Furthermore, the IMF has praised the efforts of the country’s citizens in implementing new economic reforms. The local debt optimization program is nearing its completion and discussions regarding foreign loans are already in progress with all creditors.”
“While some groups have claimed that Sri Lanka has been isolated in foreign debt optimization discussions, it’s important to note that no country has declared its unwillingness to support us under the foreign debt optimization program. These countries are actively engaged in discussions with us. We are confident that after completing the domestic debt optimization work, progress on foreign debt optimization will also be swift.”
“Everyone should maintain a positive outlook on this.
This year, our economic situation has significantly improved compared to a year ago. Inflation, which stood at 70% then, has now decreased to 1.3%, providing a substantial boost to our country’s economy.
Last year, the interest rate on treasury bills in the domestic market was as high as 30%. Today, it has reduced to 13%. This reduction is a significant advantage for our treasury.
Furthermore, our foreign reserves have increased and we are witnessing an upturn in tourism. Additionally, remittances from Sri Lankans abroad have resumed their normal flow. With the on-going economic development, we have laid out plans to continue our economic growth roadmap for the upcoming year without any hindrances.”
“As a nation, our path forward should prioritize sustainable economic growth and a positive mind-set is crucial. Economic reforms, which should have been initiated two decades ago, are now in progress. History has shown that many small countries achieved significant development through such reforms.
It’s important to acknowledge that we are currently navigating challenging times as a nation. If the President’s economic reform program continues on this trajectory, Sri Lanka can evolve into a nation with a robust economy in the future. Strengthening the economy may not align with the interests of groups pursuing narrow political gains, but with the anticipated second instalment from the International Monetary Fund, we can steer our country toward a positive economic outlook by 2024.”
Colombo (LNW):SriLankan Airlines has entered into a first-ever interline partnership with Virgin Australia that will strengthen the airline’s network in Australia and offer customers extensive connections across the land down under and beyond.
The new partnership reaffirms SriLankan’s commitment to Australia and will present customers the convenience of adding select Virgin Australia domestic or international connections to their SriLankan Airlines booking and managing a multi-airline itinerary under a single ticket, the SriLankan Airlines disclosed.
Dimuthu Tennakoon, Head of Worldwide Sales & Distribution of SriLankan Airlines commented on the partnership by stating, “Australia has one of the largest Sri Lankan diasporic communities, which makes Australian routes incredibly popular all year around and particularly with people travelling to visit friends and relatives or in pursuit of higher education.
This partnership will help us make further inroads in the Australian market through improved connectivity and a range of other benefits for our valued customers.”
SriLankan Airlines currently operates daily from Colombo to Melbourne and from Colombo to Sydney on a thrice-weekly basis.
The partnership will enable passengers flying SriLankan to Melbourne or Sydney to connect to the Australian cities of Adelaide, Brisbane, Canberra, Cairns, Darwin, Hobart, Hamilton Island, Launceston, Gold Coast and Perth with Virgin Australia. Passengers will also have the option of flying beyond Australia to New Zealand, Samoa and Fiji.
It is a win for Sri Lankan and Indian Australians living in these cities too as they can now fly out from their local city to Sri Lanka or India with a single SriLankan Airlines’ booking. What’s more, passengers can enjoy a seamless journey with a single check-in, including for baggage, at the departure airport and beat transit check-in queues.
The introduction of domestic and international interline flights options with Virgin Australia would improve the accessibility to Sri Lanka for Australian outbound tourists as well. An important customer group for SriLankan, the partnership will unquestionably help develop Australian leisure travel to Sri Lanka.
It will also provide easy connections for SriLankan Airlines’ passengers flying to Australia via Colombo from the Maldives, India, Nepal, Pakistan and Bangladesh, the statement added.
Since relaunching flights to Melbourne in October 2017 and Sydney in June 2020, close to a million passengers have travelled with SriLankan Airlines to Australia.
The new partnership will enhance SriLankan Airlines’ service to Australia as the airline prepares to cruise to new altitudes above the land down under, according to the SriLankan Airlines.
Colombo (LNW): The construction industry continued to perform at a subdued level in August 2023, yet reaching towards the neutral threshold, Central Bank report revealed.
Construction firms tend to undercut prices to secure the limited available projects in a highly competitive tender bidding process, CB report claimed.
The lack of new projects continued to have a severe adverse impact on the industry as reflected by the continuous decline in New Orders.
Many Industry stalwarts highlighted that the limited availability of local and foreign funded construction projects is still a major concern in the industry.
In this background, firms laid off contract based employees to scale down operations as reflected by the continuous decline in Employment.
Further, Quantity of Purchases continued to decline, yet at a slower rate during the month. In the meantime, Suppliers’ DeliveryTime shortened during the month mainly due to reduced pressure on supplier capacity.
The sentiment amongst the firms towards the next three months remained positive as they experience an improvement in availability of projects from September mainly due to the expected recovery in the economy
Spiraling prices of building materials specially cement and steels in recent times have stalled the building work resulting 23.1 percent contraction in the construction sector causing a loss of 75 percent of around 1 million workforce, industry stakeholders complained.
Sri Lanka’s building construction work, has had a steep fall of 23.1 percent in the second quarter of 2023 against the same quarter last year, Census and Statistics Department confirmed this week.
The price of a 50 kg bag of Cement is being sold at the local market at an exorbitant price of Rs.2150 but it can be sold at a price of Rs.1850, a trade ministry report revealed.
The cement companies are earning an undue profit after tax of Rs 300-400 by selling 50 kg bag of cement, a senior member of the committee on public finance COPF said adding that the tax component was around Rs 850 he said adding that he has compared landed price and retail price including taxes and profits.
According to the trade ministry report presented to the committee on public finance a metric ton of Steel QT Bars could be sold at a price of Rs 290,000 including taxes of Rs49,000 and dealers margin.
But the local market price is Rs. 360,000 and therefore the companies are earning a massive profit of Rs 70,000 per mt, he pointed out adding that this price could be reduced by lowering taxes.
Colombo (LNW): The Government has appointed 10 Public Expenditure Review Committees (PERC) comprising five or six members each with the aim of rationalizing state expenses through a systematic review to strengthen the country’s fiscal consolidation and economic recovery process, the Finance Ministry announced.
The Cabinet of Ministers at its meeting held on February 6, 2023 decided to appoint these committees with the participation of public and private sector experts to rationalize the government expenses of 10 key Ministries using the Zero-Based Budgeting Approach (ZBB).
The aim is to strengthen the fiscal consolidation process and support the economic recovery process, a senior official of the Ministry told the Business Times. There are several drawbacks in the long-standing budgeting practices adopted in Sri Lanka. Over the years, this has resulted in finances being allocated for redundant activities, duplications and unproductive functions.
As a result, there are often insufficient funds for core activities and functions of key line ministries. The prevailing fiscal crisis has made it all the more important to allocate scarce resources in the most efficient and productive way possible, the ministry statement highlighted.
In most cases, the annual budget is prepared on the basis of incremental adjustments to the previous year’s budget, without a rigorous review of the rationale and efficacy of past resource allocations.
With this major public finance reform to introduce Zero Based Budgeting, it will become necessary for line ministries to provide justifications for resource allocations regardless of previous years’ budgeted allocations the Ministry revealed.
Accordingly, finances will only be allocated following a clear evaluation of needs, costs, and associated benefits of such spending.
PERC will review all programmes/projects of each line Ministry and ascertain whether the core activities are in accordance with the mandate of the Ministry.
Moreover, PERC will identify duplications, wastage, and redundant expenditures, and prioritize all activities as per their potential for achieving objectives of the Ministry as well as national policies.
In addition to that, they will introduce short, medium, and long-term reforms to be implemented by each Ministry, with a view to optimizing productivity and cost effectiveness in their service delivery.
These committees have been appointed to oversee accounting procedure and control public expenditure in the Ministry of Transport and Highways, Ministry of Urban Development and Housing, Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government, Ministry of Defence Ministry, of Public Security, Ministry of Education, Ministry of Health, Ministry of Agriculture, Ministry of Plantation Industries and Ministry of Irrigation.
Ms. Aruni Wijewardane who was in retirement was brought back from retirement by the then President Gotabaya Rajapakse and appointed as the Foreign Secretary on the recommendation of a politician . She assumed duties as Secretary to the Ministry of Foreign Affairs on 22 May 2022. She was a career diplomat . So much was expected from her as Foreign Secretary .
But according to several retired and serving officers. She is frequently embarking on foreign trips ( In September alone- Cuba, US now Germany) whilst the foreign ministry is sinking . She does not share the travel opportunities with other officers. We don’t want to list out the trips she has undertaken so far and the cost to the tax payer at a time when the country needs to preserve the foreign exchange. They noted she loves travel, the media and likes to be pictured with the president overseas with world leaders. What value has her trips had for the government and the people of Sri Lanka? Talk of one grant she got for Sri Lanka? A parliamentarian suggested that a debate is required at the way the foreign ministry is currently run. The secretary has been out of the country for over weeks.
The work of the ministry, (leave alone the cost of her overseas travel) is in a mess they noted. Several missions have no heads . Further they note she travels with a huge contingent of protocol officers . Again we refrain publishing the numbers. They told LNW one person is assigned to make sure of her seating and arrival, rooms etc are in order. She is acting as though she is the Minister , given that the Minister is new to diplomacy. This was evident in his recent outburst with regard to Prime Minister Justin Trudeau of Canada . Bankrupt Sri Lanka does not need any disputes with any nation at this time. A kindergarten child would tell you this. The Administration in the foreign ministry when it comes to appointments is done at her whims and fancy. Moreover she is not a good at administration. Those not in favor with her are not given good postings. She is a law unto herself, some noted . The biggest drawback, there is very little economic diplomacy they noted .
She is focused on foreign visits and meeting foreign dignitaries. The foreign ministry needs according to some observers a high caliber young officer who understands global trends and technology . Someone who understands commerce and business given Sri Lanka’s sorry economic plight. President Wickramasinghe will do himself a big favor they noted if he focuses more on the efficiency of the ministry and the missions Sri Lanka has globally, that sucks up the millions of USD that our hard working house maids keep remitting for our half baked diplomats to sip wine in cocktail circles and ride in Mercedes and BMWs and educate their children overseas. The country badly needs demonstrable results and to prune costs as the IMF put it bluntly at a press conference this week.
The National Audit Office has revealed that government officials involved in fraud and corruption are now subject to surcharges under the provisions of the new Audit Act. These surcharges apply to individuals found guilty of causing financial loss to the government through fraudulent activities, corruption, and discrepancies, contravening existing laws.
The National Audit Office possesses the authority to issue orders to the Chief Accounts Officer for implementing these surcharges. While several government officials who are liable for surcharges have been identified, they have the option to appeal against the surcharge imposition. To address these appeals, an Appeals Committee must be established, but as of now, the Constitutional Council has not appointed such a committee.
The implementation of surcharge orders will be delayed until the Appeals Committee is established and operational.
The ICJ is concerned that the newly proposed Online Safety legislation, if adopted in its present form, would serve to crush free expression and further contract an already shrinking civic space in Sri Lanka.
On 18 September 2023, the Ministry of Public Security gazetted a bill titled “Online Safety” intended to dramatically regulate the content of online communication, including by the general public.
The ICJ considers that several provisions of the bill would serve to undermine the exercise of human rights and fundamental freedoms in the country, including freedom of information and expression. Of particular concern are provisions related to the setting up, appointment and functions of an Online Safety Commission and other experts, the vague and overbroad wording of conduct designated as punishable offences and unnecessary and disproportionate punitive sanctions.
“While the spread of online hate-speech and disinformation need to be tackled, this bill is deeply flawed in its design and would be open to abuse by the Sri Lankan government, which has persistenty failed to uphold freedom of expression,” said Ian Seiderman, ICJ’s Legal and Policy Director. “It risks being used to suppress important public debate regarding the conduct of the government and matters of public policy,” he added.
The Bill would establish an “Online Safety Commission” that would act to: “prohibit online communication of certain statements of fact; prevent the use of online accounts and inauthentic online accounts for prohibited purposes; make provisions to identify and declare online locations used for prohibited purposes in Sri Lanka and to suppress the financing and other support of communication of false statements,” as well as other unspecified matters.
The Bar Association of Sri Lanka has called for the immediate withdrawal of the bill and for the adoption of a process of meaningful consultations with all relevant stakeholders prior to gazetting bills which ‘have a serious impact on the community at large.’
“The current draft fails to adhere to the principles of legitimacy, necessity and proportionality required for any State activity that restrict rights. It must be withdrawn or amended to be brought in line with Sri Lanka’s international human rights obligations guaranteeing freedom of expression, opinion, and information.” Seiderman added.
The ICJ considers that the Bill should not be evaluated in a vacuum, but instead must be read in conjunction with existing and proposed legislation that threaten human rights. Such laws include the extremely misused ICCPR Act of 2005, the Prevention of Terorrism Act (PTA), the Bureau of Rehabilitation Act, and the proposed Anti-Terrorism law which seeks to replace the PTA. This body of legislation, taken together, fosters a chilling effect on the exercise of fundamental freedoms restricting civil society while unduly expanding the reach of the security state.
Article 14 (1) (a) of the Sri Lankan Constitution gurantees the freedom of speech and expression. Article 19 of the International Covernant on Civil and Political Rights, to which Sri Lanka is a party, affirms the right to freedom of expression and opinion.
In July 2018, the UN Human Rights Council adopted by consensus a resolution affirming that “the same rights that people have offline must also be protected online, in particular freedom of expression, which is applicable regardless of frontiers and through any media of one’s choice, in accordance with articles 19 of the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights.”
Contact: Ian Seiderman, Legal & Policy Director, e: [email protected]
See annexed below a summary analysis of some problematic aspects of the Online Safety Bill.
Sri Lanka: Selected flaws in the Online Safety Bill
Wide ranging and overly broad powers of the Online Safety Commission and appointed Experts
The bill provides for the establishment of a five-member ‘Online Safety Commission’ that is to be appointed on the sole discretion of the President (clause 5). This is in contrast to other notionally independent commissions in Sri Lanka, the appointments to which require the consent of the Constitutional Council by way of nomination or ratification. This bill would give the president unfettered discretion where both appointment and removal is concerned.
The Commission would also be vested with a wide range of powers, some of which encroach into the functions of the judiciary. It essentially acts as sole arbiter of matter of fact and is entitled to issue notices or directives against any person, internet service provider (ISP) or internet intermediaries who/which is alleged to have communicated a prohibited or false statement. The bill does not specify the process through which the Commission would arrive at this decision.
Moreover, the Commission is granted authority to block websites and instruct ISPs to restrict access to specific online locations. This may result in undue government overreach and censorship and impermissible limitations on the exercise of the right to information protected by Article 14A of the Constitution and international law.
Further clause 37 allows for the Minister to appoint ‘Experts’ to assist police officers in investigations. The experts are private individuals who can accompany police officers during search procedures, but are also given the power upon authority granted by a police officer above the rank of a sub-inspector to require a person to hand over any documents or device, provide traffic data or be orally examined (clause 37 (6)). Such excessive powers in the hands of unaccountable private individuals provide avenues for abuse.
The bill does not provide provide for judicial review of the Commission’s decisions or procedures. Instead clause 49 seeks to protect the Commission, its staff, or any expert appointed under clause 37 from being brought to court for any act or omission done in good faith.
Vague and overbroad offences
A particularly problematic aspect of the bill are provisions of vague and overbroad definitions of offences.
Article 19(3) of the ICCPR provides that the right to freedom of expression and opinion may be subject to certain restrictions, but that these restrictions must be provided by law and necessary for one of a limited numbers of legitimate purposes, namely to protect the rights and reputations of others, national security, public order or public health or morals. The measure of limitation must be proportionate, using the least restrictive means possible to achieve the purpose. The requirement that any restrictive measure be provided by law means that they must comply with the principle of legality, by which the law must be stated with precision as to allow persons to be able to conform their conduct in compliance.
Similarly, Article 15 (2) of the Sri Lankan Constitution provides for possibility of restriction of the right “as may be prescribed by law in the interests of racial and religious harmony or in relation to parliamentary privilege, contempt of court, defamation or incitement to an offence.”
The prohibitions listed in this draft legislation go beyond the restrictions allowed for under the ICCPR and the Sri Lankan Constitution, as clause 12 states that “any person who poses a threat to national security, public health or public order or promotes feelings of ill-will and hostility between different classes of people, by communicating a false statement, commits an offence.”
In addition, several acts that would constitute offence are only vaguely defined, if at all. This includes communicating a false statement “with the deliberate intention of wounding the religious feelings of any other person” (clause 16) or “outraging the religious feelings of any class of persons, insults or attempts to insult the religion or the religious beliefs of that class” (clause 17). These clauses are overbroad in that they would encompass expression that is protected under human rights law. Clause 14 makes it an offence to ‘wantonly giving provocation by false statement to cause riot’. This language is open to abuse by the authorities, as evidenced by practices arising from other legislation, including the ICCPR Act and the PTA.
Repeated mention of ‘religion’ in these provisions is a cause for concern as they come in a context where there is ongoing strife relating to contested religious sites between majority and minority religious communities, thus creating risk of selected application to silence expression by persons from minority religious communities.
Disproportionate Punishment
The draft bill prescribes unjustifiably hefty punishments of fines and a period of imprisonment ranging from one, two, three or five years for overbroad and ill-defined offences. It also states that “in the event of a second or subsequent conviction, such term of imprisonment or fine or both such imprisonment and fine may be doubled.”
Clause 25 of the bill, which refers to ‘failure to comply with the directives of the Commission’ would make it an offence to fails to comply with such directive within a period of 24 hours and makes the person liable to imprisonment for a term not exceeding five years or to a fine not exceeding one million rupees.
