1. Lanka Coal Company says it has secured only 12 coal shipments out of 30 scheduled for Oct’22-Apr’23 unloading season, so far: confirms that 30% part payments have been made for 13th to 17th shipments: also says 13th shipment already berthed in Puttalam while 14th is near, but balance 70% not paid yet due to lack of funds: meanwhile Central Bank says its Forex reserves have increased.
   
2. Ceylon Chamber of Commerce asks China “to work with the IMF in order for Sri Lanka to receive its much needed funding”: says Govt has carried out an initial set of reforms and that the Chamber expects more reforms after IMF Board approval: present CCC office bearers have been vehemently demanding higher Govt taxes, IMF programme and an ISB Default.
   
3. Central Bank settles about USD193mn (Rs.70.3bn) worth USD denominated SLDBs held by commercial banks and small-holders in Rupees through Treasury Bonds and cash: stock of SLDBs reduced to Rs 273bn from Rs.343bn.
   
4. Health Ministry instructs Govt Hospitals to postpone non-essential & non-urgent surgeries at Govt hospitals: only “essential & urgent surgeries” to be performed.
   
5. President Ranil Wickremesinghe instructs Govt officials to purchase paddy at a guaranteed price of Rs.100 per kg: also says the Northern Province and Jaffna District will be developed as areas capable of supplying food to Sri Lanka.
   
6. Mahanayakes of Malwatte & Asgiriya Chapters and Diyawadana Nilame of the Dalada Maligawa Pradeep Nilanga Dela request IGP to prevent slanderous propaganda in some social media defaming the Dalada Maligawa and the Mahanayake Theras.
   
7. Mass Media Minister Dr Bandula Gunawardena says Opposition Leader Sajith Premadasa has defamed the IMF by saying “a SJB Govt is not bound to implement any agreement with the IMF”.
   
8. State Minister of Finance Shehan Semasinghe claims a few individuals including PUC Chairman Janaka Ratnayake are contributing to the delay in Sri Lanka obtaining the IMF Board approval for the USD 2.9 bn EFF: also says he doesn’t know their reason for doing so.
   
9. Media Spokesman of the GMOA Dr Chamil Wijesinghe says stocks of over 140 essential drugs used for the treatment of patients have been exhausted: asserts the maintenance of health services of the entire hospital system is therefore a severe challenge.
   
10. Dept of Motor Traffic Commissioner General Nishantha Anuruddha Weerasinghe says over 700,000 vehicles identified to be in the category and brand of vehicles with faulty airbags which have been recalled by the manufacturers, are currently in operation in Sri Lanka.

The iconic Jaffna Cultural Center (JCC), which was built with grant assistance of Government of India (GOI), was dedicated to the people on 11 February 2023 at a colourful event in the gracious presence of President of Sri Lanka H.E Ranil Wickremesinghe,  Minister of State for Fisheries, Animal Husbandry & Dairying and Information & Broadcasting, GOI Dr. L. Murugan, High Commissioner of India Gopal Baglay, Hon. Douglas Devananda, Minister for Fisheries, Hon. Vidura Wickramanayake, Minister for Buddhasasana, Religious and Cultural Affairs,  Hon. Kadar Masthan, Minister of State for Rural Economy, several Parliamentarians and dignitaries from various walks of life.

2.  Describing JCC as a gift from Prime Minister Narendra Modi, President H.E Ranil Wickremesinghe thanked him and GOI for the Center. He thanked India for the support extended to Sri Lanka during the economic challenges. Highlighting cultural similarities between the two countries, he noted that India and Sri Lanka were the two sides of the same coin. 

3.     Speaking on the occasion, Minister of State Dr. L Murugan underlined that India’s partnership with Sri Lanka was guided by Prime Minister Narendra Modi’s ‘Neighbourhood First’ policy. He also announced a special financial assistance scheme to 100 students from economically weaker families in University of Jaffna. He also highlighted that GOI have implemented numerous people-centric projects cutting across sectors in Northern Province. 

4.     H.E Ranil Wickremesinghe and Hon. Vidura Wickramanayake handed over a special token of gratitude to Minister Dr. L Murugan for JCC. The wide array of cultural performances showcased the richness and diversity of Sri Lanka’s culture. 

5.   The state-of-the-art facility consists of multiple facilities such as a museum of two floors; an advanced theatre-style auditorium for more than 600 people; a  11-storeyed learning tower; a public square which could also act as an amphitheater; exhibition galleries (Air conditioned), Open exhibition and a 100-seat Conference facility, among others .

6.      Foundation stone for JCC was laid by Prime Minister Narendra Modi in May 2015 during the first – ever visit by an Indian Prime Minister to Jaffna.  Following the construction of JCC, the iconic facility was virtually inaugurated during the visit of External Affairs Minister Dr. S. Jaishankar to Colombo in March 2022. 

7.    JCC is an outstanding example of GOI’s ongoing commitment to the people of Sri Lanka including in the Northern Province. GOI’s development partnership with Sri Lanka which touch upon all aspects of daily lives such as infrastructure development, education, health, housing, livelihood development etc currently stands at USD 5 billion.

***

Colombo 

11 February 2023

A meeting between the Tamil Nadu president of the Bharatiya Janata Party K. Annamalai, who is traveling to Sri Lanka, and the executive committee of the Ceylon Workers’ Congress was held yesterday (11.02.2023) at the headquarters of CWC in Soumya Bhawan.

Secretary General of Ceylon Workers’ Congress and Minister Jeevan Thondaman, President of Ceylon Workers’ Congress Senthil Thondaman, Vice President Maruthapandi Rameswaran MP, Vice Presidents Ganapathi Kanagaraj, Anushiya Sivaraja, National Organizer AP Sakthivel, Vice Presidents, Divisional Council Presidents of Ceylon Workers’ Congress, and Party dignitaries participated in this meeting.

Also, a special meeting between the members of the Sri Lankan Indian Community Council and K. Annamalai was held at the Ministry of Water Supply and Estate Infrastructure Development under the leadership of Jeevan Thondaman.

In this meeting, Tamil Nadu State President of the Bharatiya Janata Party Annamalai stated Minister Jeevan Thondaman that he would act as a bridge between the people of the central province and the Central Government of India to provide financial assistance in all possible ways and to speed up the measures to implement the 10000 houses project in the central province.

Joint Press Release by the Embassy of Sri Lanka, Washington D.C., and Heart to Heart International, United States

Under the guidance of His Excellency Ambassador Mahinda Samarasinghe, Heart to Heart International has now obtained all necessary government approvals for the fourth in-kind donation of urgent medical aid, worth an approximate of $6,987,269.78 USD (i.e., LKR 2.6 billion), to the people of Sri Lanka. In collaboration with the Ministry of Health in Sri Lanka and this Embassy, the fourth donation is scheduled to arrive in Colombo Sri Lanka, via air by early next week. The latest donation includes specialized medicines such as: Everolinus, an immunosuppressant used for organ transplants; and Sunitinib Malate, used for cancer treatments.

The Sri Lankan Embassy in Washington, D.C. is immensely thankful to Heart to Heart International for the generous donations made to the people of Sri Lanka. Heart to Heart International has borne all expenses, and the donation will be received by the Ministry of Health for immediate distribution at no cost to the people of Sri Lanka.

Headquartered in Lenexa, Kansas, Heart to Heart International (HHI) is a global humanitarian organization focused on improving access to health. Since its inception in 1992, HHI has delivered medical aid and supplies worth $2.5 billion to more than 130 countries, including within the United States. HHI responds to natural disasters both domestically and internationally by supplying medical relief and mobilizing volunteers. The organization is a 4-star Charity Navigator charity, a BBB Accredited charity and is on the “Philanthropy 400.”

Embassy of Sri Lanka
Washington, D.C.                        

Heart to Heart International                            
Kansas

09 February 2023

By: Staff Writer

Colombo (LNW): The Government Medical Officers’ Association (GMOA) says that the stocks of more than 140 types of essential drugs used for the treatment of patients have been exhausted.

Dr. Chamil Wijesinghe, the Media Spokesman of the GMOA, pointed out that the attention of the Ministry of Health should be directed in this regard.

He also said that in view of this situation, the maintenance of health services of the entire hospital system, starting from the National Hospital to the rural hospitals, has confronted a severe challenge.

Meanwhile, President of the Health Professionals’ Association Mr. Ravi Kumudesh stressed that 80% of the drugs brought to Sri Lanka under the Indian credit assistance system have not been registered.

He alleges that the National Medicines Regulatory Authority (NMRA) is responsible for the issue.

Sri Lanka is expecting to ease a medicine shortage by next month with more supplies coming in from orders placed through an Indian credit line, as well as funds from the Asian Infrastructure Investment Bank and World Bank, health officials said.

Sri Lanka’s medical supplies were disrupted in 2022 following the worst currency crises in the history of the island’s intermediate regime central bank as the country lost the ability to pay regular suppliers and private importers also could not open letters of credit or pay for earlier imports.

Sri Lanka’s State Pharmaceuticals Corporation is getting more supplies including 14 vital medicines that were short a few months back.

“So far we have purchased 267 medicine items as of February 01,” Dinusha Dassanayake, the General Manager of SPCsaid.

“We have so far received 303 medicine consignments including 112 surgical supply consignments and we have purchased 267 medicine items as of February 01,”

India has stepped in last year with the credit line, but ordering and getting medicines takes time.“Of the 200 million US dollar credit line we received from India, we got approval for 96.7 million US dollars,” Dassanayake said.disclosed.

“And we have placed orders for 862 pharmaceuticals and 1,596 surgical items“We hope to receive it by next April or May.”

The shortage of essential medicine lists has dropped to 155 from 169 as the medicines started coming in to the country, SPC Chairman, Sarath Liyanage said.

He said funds are also being allocated from Asian Infrastructure Investment Bank, the World Bank as well as other financial institutions.

Also, the country has adequate amount of drugs or the next six months, and measures have been taken to secure more stocks, a health official from the Ministry of Health said.

Before crisis Sri Lanka usually had several months of supply of each stock, which were run down as money printing created forex shortages.

Drugs that are short in one month are not the same that are short the next month. But supplies of some drugs have now been built up for six months, a Health Ministry official said.

“Last month we didn’t receive an allocated amount of drugs but now we are in a process of receiving the drugs,” the official said.

Meanwhile, the Cabinet Spokesman Minster Bandula Gunawardana said the current drug shortage is partially due to a delay of the medicines regulator.

“When the harbour release medicine consignments, they always have to get the approval of the National Medicines Regulatory Authority,” Gunawardana said.

“The regulations and methods that they practise throughout this period will not be changed due to a medicine shortage.”

By: Staff Writer

Colombo (LNW): Sri Lanka has just managed to avert a major energy crisis triggered by coal shortage after awarding the import contract to two companies previously short-listed in a cabinet decision arrived at recently.

The tender called select prospective bidders to  bring 12 coal shipments to run the Norochcholai coal power plant with full capacity of 900 megawatts has now been awarded in accordance with cabinet decision  before April 20 and manage the monsoon season (April to September), Energy Ministry sources said.

For a season Lanka Coal Company (LCC) needs 2 million metric tons of coal – 33 ship loads to manage the current season and also for the monsoon season.

The LCC is bringing 21 ship loads of coal under already given contracts to two supplier companies last year, official documents revealed. However, and the 12 balance shipments should arrive before the monsoon season starts.

The cabinet has recommended to direct the State-owned Lanka Coal Company (LCC) to take necessary action to terminate the contract awarded to PT Arista Mitra Jaya after seeking legal advice from the Attorney General’s Department and to award the contract to Coral Energy DMCC, the UAE and Combasst Industry Development Ltd., as an emefency procurement initiative  

According to energy ministry sources , Coral Energy DMCC has indicated that it would provide a performance bond worth US$ 5 million, with eight shipments out of 12 to be supplied during this coal season.

Combasst Industry Development has agreed  to provide $ 100,000 as a performance guarantee, with four shipments out of 12 to be supplied during this coal season subjected to the authentication of documents within the tendered timeline.

The procurement committee has called for Expressions of Interest (EOI) from prospective suppliers and government to government proposals, on a long-term credit basis to bring these 12 shipments and the EOI was called by LCC for this purpose last year.

For the first time, for a contract of over US$ 300 million, an EOI was called from suppliers without asking to submit a bid bond. Further they were not asked to give a performance bond too ministry revealed.

The 12 shipments must arrive at the Colombo Port before April 20 somehow to avoid the long hour power cuts.

According to the Cabinet decision it has recommended accepting the price of Coral Energy as $ 240 per MT (fixed) for quantities received before 5 May.

The Cabinet has also recommended negotiations with the contractor to arrive at a mutually-agreed index base price for the remaining quantities based on the negotiations letters of the bidders submitted on 5 February.

It has also recommended accepting the price of Combasst Industry at a price of $ 230 per MT based on the negotiation letters of the bidder submitted on 5 February.

Further, it is understood that if remaining shipments of this contract are available after the completion of the ongoing unloading season (April), the Technical Evaluation Committee (TEC) has recommended obtaining the remaining quantities from Coral Energy and Combasst Industry during the next season, which starts from September 2023.

By: Staff Writer

Colombo (LNW): Sri Lankans are in for a long drawn-out path out of the economic misery that they have dug themselves into, as the prevailing cost of living crisis could grind on for years with inflation staying higher than the pre-crisis level, this year if things turn out according to the forecasters’ expectations. 

According to the medium-term inflation projections presented last week by the Central Bank together with the Finance Ministry to the country’s foreign creditors in September 2022 Sri Lanka’s runaway inflation is going to stay at 29.5 percent on average through 2023, before cooling to 6.0 percent in the following year.

Contradicting Central Bank’s predictions conveyed to Sri Lanka’s external creditors to get their assurance for debt restructuring in September 2022, Central Bank Governor Nandalal Weerasinghe now says that the inflation is likely to come down below 10% by the end of 2023, which would also help to gradually bring down the interest rates.

Sri Lanka’s key inflation rate eased to 54.2% in January from 57.2% in December, the country’s statistics department said.

Outlining the rationale for not bringing down the interest rates immediately, he explained to the COPF meeting recently that it was difficult to reduce rates immediately as the impact of previous measures in 2021 was reflecting adversely on the economy last year.

Asked how much money was printed in 2022, the Governor said it was a technical question and the total base money printed in 2021 was Rs. 344 billion, whilst the net basis reserve money issued in 2022 was below Rs. 40 billion.

 However, political instability, social unrest and the time taken to activate the International Monetary Fund bailout package could determine how long Sri Lanka’s people will have to put up with these spiralling prices and remain miserable.

Sri Lanka’s officiate high level, as the larger majority, who cannot put up with the pace of prices, are either staying hungry or forgoing meals while the others board planes seeking better living conditions elsewhere, where at least their hard-earned money is shielded from the runaway prices.

Two-thirds or more people in Sri Lanka are forgoing meals while 32 Sri Lankans go abroad every passing hour, according to reports.

Meanwhile, the projections presented to the creditors also showed that the economy would continue to shrink in 2023, at 3.0 percent levels, before recovering to an insignificant 1.5 percent level in 2024. This level of growth is insufficient to create economic opportunities for the country’s workforce.

The runaway prices in a continuously declining economy could be the most toxic combination that its citizens could wish for and the Sri Lankans today are living that nightmare and it could last for several more years.

By: Staff Writer

Colombo (LNW): Measures taken to provide the horses of Sri Lanka Mounted Police Division with local grains, as a result of the ongoing dollar crisis, have been successful thus far, the Division confirmed.

Accordingly, a programme to feed the horses with local grains such as green gram, chickpeas and corn was implemented after they were unable to import the required feed, owing to Sri Lanka’s dollar crisis.

The inability to import the feed required for the horses ultimately led to them losing weight and becoming emaciated, the Mounted Police Division stated.

However, with the recent program, there has been an evident increase in the weight of the horses, albeit gradually, the Division stated.

Sri Lanka Police Mounted division has lost seven horses due to feed shortage, a police official said, amid import bans.

One horse has died from internal injuries that was caused due to lack of feed, while the other horses were suffering from various illnesses amid lower nutrition level, Police Media Spokesman disclosed. “The deaths occurred in February, April, October and November 2022,” he said.

Each horse under the mounted division is worth around 35,000 US dollars and currently there are around 50 horses that are being maintained, he said.

“According to the doctor’s report, only one horse has died because of internal injuries occurred due to lack of feed.”

Sri Lanka has banned many imports including processed animal feed and raw materials for feeds due to a forex shortage that later turned into an economic and political crisis.

The local production of feed was further affected by the import ban on fertilizer, resulting in a drop in agricultural products.

After the rupee collapsed in early 2022, animal feed importers have been struggling. The ban was later lifted partially.

The import ban led commercial banks to refuse to open letters of credit. The available foreign reserves were allocated to import fuel and medicine to the country.