By: Staff Writer

Colombo (LNW): Top Chinese investors on exploratory visit to Sri Lanka has given an assurance that they will come back with their investments for further developing many fields including tourism and hospitality industry, gem and jewellery, agriculture, medicine, food processing, renewable energy and entertainment industry.

This large group of Chinese entrepreneurs called on Prime Minister Dinesh Gunawardena to discuss possible investments in many spheres recently.

The Prime Minister said there is vast potential for investments in many fields including tourism and hospitality industry, gem and jewellery, agriculture, medicine, food processing, renewable energy and entertainment industry.

Daguowen Culture Co., Chairman Zhang Qihua said he is dealing with international cultural exchange, global sustainable development promotion and Sri Lanka has potential to attract more than million tourists from China.

He said he would work closely with Connaissance De Ceylon Chairman Chandra Wickremasinghe to jointly promote Chinese tourists to Sri Lanka.

Zhejiang Outstanding Women’s Chamber of Commerce Chairwoman Jin Mei Yang expressed willingness to assist women empowerment programmes in Sri Lanka.

Wuxin Group Chairwoman Xie Yueyu,a medical research group working on collaboration between human liver cells and gemstones for human health said she was interested in setting up a branch in Sri Lanka to assist cancer cure.

Over the decade starting 2005-2015, China has emerged as the leading source of Official Development Assistance (ODA) and Foreign Direct Investment (FDI) in Sri Lanka–$14 billion. Most of it is ODA in loans and grants–$12 billion in sectors like energy, infrastructure and services. There is private Chinese investment too–$2 billion and growing.

China’s flagship projects are the Hambantota Port Development and the Colombo Port Project, both supported by loans and located at strategic points on the global sea trade route. Much of the infrastructure project funding comes through Chinese government companies.

For example, the $1.3 billion Norochcholai Coal Power Plant is being built by the China Machinery Engineering Corporation, and Hambantota’s $1 billion in loans comes from the China Harbour Engineering Company Ltd and Sino-Hydro Corp, both of which are building the port. Large projects like these make it easier for Beijing to draw Sri Lanka into its 21st Century Maritime Silk Road project, all part of the One Belt, One Road initiative.

There is significant Chinese private money too, largely from Hong Kong, This capitalises on Sri Lanka’s cheap and productive labour as also the island nation’s coveted access to the South Asian, EU and American markets.

The prominent investors are mostly Hong Kong billionaires, including Lai Weixuan’s AVIC International Hotels Lanka which is investing $250 million in luxury housing in Colombo, Robert Kuok’s Shangri-La Hotels Lanka which has $16 million in a five-star hotel in Colombo, and Li Ka-Shing’s Hutchison Telecommunication which is spending $20 million on improving its already large mobile network in Sri Lanka.

Dr. A. Saj U. Mendis, Sri Lanka’s Ambassador to Vietnam, met with Minister of Public Security To Lam at the Ministry of Public Security in Hanoi, engaging in extensive discussions. The Ministry of Public Security is a crucial institution in Vietnam, and Minister To Lam is one of the senior political leaders of the Communist Party of Vietnam. The meeting, lasting over 60 minutes, covered a wide range of topics and was marked by its comprehensive and substantive nature.

Ambassador Mendis lauded Vietnam’s remarkable economic progress and development over the past decades, highlighting its status as one of the world’s fastest-growing economies. He further emphasized that political economists predict Vietnam to become a trillion-dollar economy by 2030, noting its bilateral trade surpassing the GDP of certain countries.

Expressing gratitude on behalf of the Government of Sri Lanka, Ambassador Mendis acknowledged the cooperation and assistance extended to Sri Lankan migrants stranded in Vietnam in November of the previous year. He also thanked Vietnam for its support at the Human Rights Council (HRC), as Vietnam holds membership in the council.

Minister To Lam expressed the desire for increased collaboration between the Ministry of Public Security and its Sri Lankan counterparts to strengthen security, law enforcement, and transnational crime prevention, aiming to contribute to stability and peace in the Indo-Pacific region. He highlighted the proactive coordination, consultation, and support demonstrated by both countries at various multilateral forums and international organizations, appreciating the mutual benefits derived from such efforts.

Minister To Lam expressed Vietnam’s gratitude for the support and consideration extended by successive Sri Lankan governments over the past decades.

During the discussions, Minister To Lam and Ambassador Saj Mendis explored effective strategies to enhance and deepen economic and commercial relations between the two countries, particularly focusing on tourism, trade, investments, and people-to-people exchanges. They agreed to work closely together on various outstanding issues. Minister Counsellor Mahesh Premathilake accompanied Ambassador Mendis during the meeting.

A delegation of Chinese entrepreneurs visited Temple Trees and held discussions with Prime Minister Dinesh Gunawardena, exploring potential investments across various sectors. The Prime Minister highlighted the vast potential for investment in Sri Lanka, specifically in areas such as tourism and hospitality, gem and jewelry, agriculture, medicine, food processing, renewable energy, and the entertainment industry.

Zhang Qihua, Chairman of Daguowen Culture Co., Ltd., emphasized the potential for attracting over a million Chinese tourists to Sri Lanka and expressed his commitment to working closely with Chandra Wickremasinghe, Chairman of Connaissance De Ceylon, to promote Chinese tourism in the country.

Jin Mei Yang, Chairwoman of Zhejiang Outstanding Women’s Chamber of Commerce, expressed her willingness to support women empowerment programs in Sri Lanka, highlighting the importance of fostering gender equality and female entrepreneurship.

Xie Yueyu, Chairwoman of Wuxin Group, a medical research group specializing in the collaboration between human liver cells and gemstones for human health, expressed interest in establishing a branch in Sri Lanka to contribute to cancer treatment advancements.

The delegation included representatives from various Chinese enterprises, including Zhang Xiaomei, General Manager of Lanzhou General Machine Manufacturing; Li Zhengguo, Chairman of Shandong Jujinlong Group (Hydrogen energy industrial park for new energy technology); Zhou Wenlong, Chairman of Shenzhen Zhongdian Core Technology Co., Ltd.; Li Min, Executive Assistant at Shenzhen Zhongdian Core Technology Co., Ltd.; Guo Tingting, Chairman of Anthony Walter Piano and Executive President of Wuxin Public Welfare Foundation (International artistic and cultural cooperation); and Xiao Ling, General Manager of Wuxin Group (Public emergency Chinese medicine assistance and collaboration with Chinese hospitals).

The visit of the Chinese delegation reflects the growing interest of Chinese entrepreneurs in investing in Sri Lanka and collaborating with local partners to drive economic growth and development. These discussions pave the way for potential partnerships and investments that could benefit both countries in various sectors of mutual interest.

A delegation of foreign representatives from the International Air Transport Association (IATA) visited Sri Lanka to participate in the conference titled ‘Re-awakening the Civil Aviation Industry of Sri Lanka,’ organized by the Civil Aviation Authority of Sri Lanka. During their visit, the delegation met with Nimal Siripala de Silva, the Minister of Ports, Shipping, and Aviation, to discuss the measures taken to revive Sri Lanka’s air transportation sector, which faced significant setbacks due to the Covid-19 pandemic and other economic challenges.

Minister de Silva commended the efforts made by the representatives and acknowledged their role in supporting the restoration of Sri Lanka’s aviation industry. He called upon the International Air Transport Association (IATA) to extend its support for the sustainable development of the country’s aviation sector. The Minister expressed his confidence that collaborative efforts would help identify the existing challenges faced by aviation administrators, policymakers, and other stakeholders.

Philip Goh, IATA’s Regional Vice President for Asia-Pacific, addressed the meeting and provided insights into the current state of international air transportation. Globally, the industry stands at 89%, whereas in the Asia-Pacific region, it is at 69%. Goh emphasized that Sri Lanka has made significant progress in its air transportation sector compared to global and regional standards. He further reiterated IATA’s commitment to fully support the development of Sri Lanka’s aviation industry. Discussions with the Civil Aviation Authority are scheduled in the coming days to explore potential measures and strategies for further advancement.

The Secretary to the Ministry of Ports, Shipping, and Aviation, K.D.S. Ruwanchandra, was also present at the discussions, emphasizing the government’s commitment to revitalizing the civil aviation industry and the importance of collaboration with international partners like IATA.

The visit of the foreign delegation from IATA signifies a crucial step in rejuvenating Sri Lanka’s aviation sector, fostering collaboration between industry experts, and paving the way for sustainable growth and recovery.

State Minister of Technology Kanaka Herath unveiled the ambitious DIGIECON 2030 program, designed to propel Sri Lanka’s economy towards a comprehensive digital ecosystem that fosters inclusivity and utilizes advanced technology-based solutions. The program encompasses a digital master plan, a regulatory policy framework, and a series of annual events aimed at driving the country’s digital transformation.

During a press conference titled “Collective Path to a Stable Country” held at the Presidential Media Centre, Minister Herath emphasized the significance of DIGIECON 2030 in guiding Sri Lanka’s journey towards a thriving digital economy. The program’s inaugural event, “DIGIECON 2023,” scheduled for October to November 2023, will introduce the digital master plan and regulatory policy framework, while featuring international conferences, symposiums, and exhibitions focused on accelerating digital transformation and fueling the envisioned “Digital Economy 2030.”

Additionally, Minister Herath announced that the procurement process for the Indo-Sri Lanka Joint Project for the Sri Lanka Unique Digital Identity Project (SL-UDI) has commenced. The project, initiated with a memorandum of understanding (MoU) signed between Sri Lanka and India on March 28, 2022, aims to develop a unique digital identification system for every citizen in the country.

The Indian government will oversee the software development for the SL-UDI project and has pledged a contribution of 300 million Indian Rupees. The Information and Communication Technology Agency of Sri Lanka (ICTA) will supervise the installation of major automated biometric systems and other software systems. ICTA, along with PricewaterhouseCoopers (PwC) Lanka, will provide the necessary technological knowledge to create a robust digital ID system.

Furthermore, the Ministry of Technology, in collaboration with the Ministry of Education, plans to launch a specialized six-month IT course for Arts undergraduates to bridge the IT skills gap. Subject-matter specialists will contribute their expertise to develop a curriculum aligned with industry requirements.

The implementation of the SL-UDI project holds immense potential for Sri Lanka. It will facilitate more efficient delivery of government services, contribute to poverty reduction and welfare programs, promote financial inclusion, and minimize corruption. By embracing DIGIECON 2030 and the SL-UDI project, Sri Lanka aims to position itself as a digitally advanced nation, fostering economic growth and societal development in the digital era.

By Shamindra Ferdinando

The Government Medical Officers’ Forum (GMOF) yesterday (13) pointed out that India couldn’t absolve itself of the responsibility for the alleged supply of low quality Indian medicines to Sri Lanka under the USD 1 bn credit line opened over a year ago. GMOF President Dr. Rukshan Bellana said so, referring to the third death due to low quality drugs reported on Wednesday (12) from the Peradeniya Teaching Hospital.

“We appreciate the Indian credit line that allowed Sri Lanka to procure a range of urgently needed medicines at a time when the government was not able to meet the basic requirements of the public but there cannot be an excuse for deaths and complications caused by Indian medicines,” Dr. Bellana said.

Responding to The Island queries, Dr. Bellana said that he sincerely hoped the government would take up this matter at the highest level. Pointing out that President Ranil Wickremesinghe was scheduled to visit New Delhi soon, Dr. Bellana said that the President should take up the issue without any further delay.

The first death caused by substandard drugs was reported from the Peradeniya Hospital on June 16. Dr. Bellana said that many had expressed concern about the death of a patient at the Peradeniya Teaching Hospital who died after being given the Indian-manufactured anaesthetic Bupivacaine.

Dr. Bellana said trouble had started in May 2023, when those who had been administered Indian medicines after eye surgery at the Nuwara Eliya hospital complained about visual impairment. The doctors cited the “presence of germs” in the eye medication as a reason for their patients’ condition. Health authorities initiated an inquiry and withdrew the drug.

Dr. Bellana said that Transparency International Sri Lanka had filed a fundamental rights petition in the Supreme Court, challenging the decision of the Cabinet and health authorities to procure drugs from unregistered suppliers.

The petition has further questioned the national drug regulator’s role in providing a waiver of registration to allow for the swift import of essential drugs. Gujarat-based Savorite Pharmaceuticals (Pvt) Limited and Chennai-based Kausikh Therapeutics have been named as respondents. Early in April this year the Supreme Court granted leave to proceed in the case and suspended imports from these companies.

Dr. Bellana, who is the Deputy Director of the National Hospital, Colombo, said that perhaps the World Health Organization (WHO), too, could look into the issue. According to him, leading Indian media groups have addressed the controversy over the quality of Indian medicine as well as the continuing shortage of essential medicines and equipment.

Dr. Bellana said that he intended to seek a meeting with Indian High Commission authorities to make representations. He asked whether corrupt elements (local agents) here with the help of interested parties in India were making money at the expense of a bankrupt country. Dr. Bellana Health Minister Keheliya Rambukwella and Director General of Health Services Dr. Asela Gunawardena owed an explanation to the public.

ISLAND LK

The Sri Lankan Rupee experienced a depreciation against the US Dollar at commercial banks in Sri Lanka today (July 14) compared to the previous day.

At Peoples Bank, the buying rate for the US Dollar rose from 307.53 to 311.42, while the selling rate increased from Rs. 322 to 326.

According to Commercial Bank, the buying rate for the US Dollar increased from Rs. 306.59 to Rs. 311, and the selling rate rose from Rs. 322 to 326.

At Sampath Bank, the buying rate for the US Dollar increased from Rs. 307 to 309, while the selling rate rose from Rs. 322 to 324.

The depreciation of the Sri Lankan Rupee against the US Dollar reflects the fluctuating exchange rates in the currency market, which can be influenced by various economic factors and market conditions. It is important for individuals and businesses to stay informed about these currency fluctuations when engaging in foreign exchange transactions or planning financial activities involving foreign currencies.

The untimely demise of a young woman at the Peradeniya Teaching Hospital has raised suspicions of an allergic reaction to medication administered during her treatment. The hospital’s Director, Dr. Arjuna Thilakaratne, addressed the tragic incident involving 21-year-old Chamodi Sandeepani, who passed away while undergoing treatment for indigestion problems. Dr. Thilakaratne stated that the drug in question, ‘Ceftriaxone,’ is an antibiotic typically administered in 2mg doses once a day.

“While it is challenging to definitively attribute the cause of death to the drug, it appears to be an allergic reaction. It is worth noting that we have administered 2,700 doses of Ceftriaxone to other patients without incident,” explained Dr. Thilakaratne.

Following a magisterial inquiry into the circumstances surrounding the young girl’s mysterious death, the Kandy Magistrate issued an open verdict. As part of the verdict, the Magistrate ordered the girl’s body specimens to be sent to the Government Analyst for further examination and the production of a detailed report.

The investigation aims to shed light on the possible connection between the medication and the adverse reaction that led to the tragic outcome. Authorities are diligently examining the evidence to determine the precise cause of the allergic reaction and subsequent demise, seeking to prevent similar incidents in the future.

The Constitutional Council is set to hold a special meeting today (July 14) under the chairmanship of Speaker Mahinda Yapa Abeywardena. The meeting will take place at 9:30 a.m. at the parliamentary complex, focusing on important constitutional matters.

In related news, the Committee on Parliamentary Business has announced that the parliament will convene from July 18 to July 21. During these sessions, a designated one-hour slot from 9:30 a.m. to 10:30 a.m. will be allocated daily for Questions for Oral Answers.

On Tuesday (July 18), the parliament will meet at 9:30 a.m. The Resolution under the Customs Ordinance published in the Gazette Extraordinary No. 2325/07 and the Regulations under the Imports and Exports (Control) Act published in the Gazette Extraordinary No. 2335/26 will be the topic of debate from 10:30 a.m. to 1:30 p.m. Subsequently, from 1:30 p.m. to 5:30 p.m., the Opposition will initiate the Adjournment Debate on the Difficulties Faced by the Palestinian People.

On Wednesday (July 19), from 10:30 a.m. to 5:00 p.m., the Committee Stage of the Anti-Corruption Bill and the Assistance to and Protection of Victims of Crime and Witnesses Bill will be addressed. Following that, the government business will proceed with the Second Reading of the Private Member’s Bill Heart to Heart Trust Fund (Incorporation) Bill.

Thursday (July 20) will feature the Second Reading of the Central Bank of Sri Lanka Bill from 10:30 a.m. to 5:00 p.m., followed by the approval without debate of the Resolution under the Essential Public Services Act. From 5:00 p.m. to 5:30 p.m., the government will present a Motion during the Adjournment Time.

On Friday (July 21), the parliament will convene from 10:30 a.m. to 5:00 p.m., focusing on the Second Reading of the Banking (Special Provisions) Bill. The day will conclude with the allotted time from 5:00 p.m. to 5:30 p.m. for Questions during the Adjournment Time.

1. Rotterdam University Senior Lecturer and Economist Dr Howard Nicholas says Sri Lanka’s commercial borrowing of over USD 14 billion from the International Bond Market from 2015 to 2019 had a severe impact on debt sustainability.
2. LKR and interest rates on topsy-turvy and uncertain paths: LKR loses 2.4% of value in just 20 days to reach Rs.321.88 per USD by 13th July: Interest rates rise rise sharply after a brief respite at this week’s auction: 3 month T-Bills rate rises from 17.79% in the previous week to 19.08% this week: 6-month T-Bills rate from 15.93% to 16.95%: 12 months T-Bills rate from 13.86% to 14.04%.
3. Minister of Public Security Tiran Alles says the CID has not stopped the investigations on self-proclaimed Prophet Jerome Fernando: asserts the investigation will continue, and it is still in the initial stages.
4. SJB MP Harsha Silva says the SJB will present an amendment to the EPF Act to “ensure an equitable treatment in restructuring of domestic debt”: analysts point out that the Monetary Board has paid a staggering 29% in interest in the year 2022 to the Central Bank’s own Provident Fund, whereas it has paid only 9% to the EPF Members in the same year: previously, Harsha Silva had advocated an IMF programme and Debt Re-structuring which has now led to the massive economic contraction of over 10% in GDP and nearly a million livelihood losses.
5. Former Health Minister and SJB MP Dr Rajitha Senaratne says that the Health Ministry is controlled by a mafia: points out that when a registered Danish company offered to provide Insulin at USD 1.55, the ministry selected an unregistered Ukrainian company, which offered the same drug at USD 4.00.
6. Former President Maithripala Sirisena informs Supreme Court that his decision to grant a Presidential Pardon to murder convict Jude Jayamaha was done after following all provisions under the Constitution.
7. State Finance Minister Shehan Semasinghe says the Govt expects to spend Rs.206 billion annually on the “Aswesuma” program despite only Rs.144 billion being spent on welfare benefits in 2022: also says as per the agreement with the IMF, the Govt had promised to spend only Rs.187 billion annually to uplift the poor in the country, but has now gone beyond that stipulated amount.
8. CID informs Colombo Chief Magistrate that it is presently probing the accounts of 6 officials from OnmaxDT who had allegedly withdrawn a sum of Rs.790 mn and deposited such sums into their own accounts: CID also informs Court that OnmaxDT had been involved in a pyramid scheme and that it will produce further submissions following investigations.
9. Nadeesha Ramamayake wins the Gold medal in the 400m women’s event with a timing of 52.61 seconds at the Asian Athletics Championship 2023 in Bangkok, Thailand.
10. Sri Lanka Cricket sources say Test captain and opening batter Dimuth Karunaratne is doubtful for the first Test match against Pakistan: Karunaratne will undergo fitness tests in Colombo over the next 48 hours, before travelling to Galle, the venue of the Test beginning on July 16: if Karunaratne is unavailable, the team to be led by all rounder and Vice Captain Dhananjaya de Silva, 31.