Ananda Palitha, Convenor of the ‘Samagi Joint Trade Union Alliance’ attached to the Samagi Jana Balawegaya (SJB), and Secretary of the Electricity Consumers Association Sanjeewa Dhammika were arrested by Kollupitiya Police yesterday evening (23) on the charges of threatening and criminal coercion against two members of the Public Utilities Commission of Sri Lanka (PUCSL).
MIAP
SL Consumer Affairs Authority (CAA) is now cracking down on egg sellers for violating maximum retail price initiative by selling it at a higher price amidst the ongoing struggle of Poultry and egg industrialists due to scare city of inputs.
The lack of animal feed, rising raw material prices, the fuel crisis, transportation issues, problems with foreign exchange when importing animal feed have brought the industry to collapse at present industry sources claimed.
Egg price has risen to over 65 rupees after the suspension of the gazette extraordinary published by the Consumer Affairs Authority (CAA) stipulating a maximum retail price (MRP) on eggs.
Egg producers have been stubborn and rejected the government request to reduce the egg prices. The MRP decision resulted in many poultry producers not supplying eggs to the markets until the prices increase.
The Consumer Affairs Authority yesterday (23) warned traders disobeying stipulated Maximum Retail Prices (MRP) for eggs, affirming that legal action will be taken against several vendors who violated the law.
On Friday, the Government issued a Gazette notification on the advice of the Attorney General stipulating the new MRP for eggs, where a white egg should be sold at an MRP of Rs. 44 and a brown egg at Rs. 46.
However, during raids conducted by the CAA yesterday, several traders were caught selling eggs at a higher price disregarding the stipulated MRP.
Despite having severe regulations and raids, traders were seen selling eggs at various prices above the stipulated MRP, after the All Ceylon Egg Producers Association refused to abide by the Gazette.
Sri Lanka will see a drop in egg prices to 50 rupees from next month onward, a top industry official said, amid the government’s effort to import eggs to bring down the prices.
The poultry and egg-producing industry’s struggle to boost the sector came under the spotlight yesterday at a high-level review involving Government officials.
The progress and challenges of the chicken and egg producers thus far were discussed in depth at a meeting chaired by Senior Advisor to the President on Food Security Dr. Suren Batagoda at the President’s Media Centre yesterday.
The poultry and egg-producing industry stakeholders were briefed on the significance of all parties coming to a consensus to grow the sector, a statement issued by the President’s Media Division noted.
Discussion topics included; the lack of animal feed, rising raw material prices, the fuel crisis, transportation issues, problems with foreign exchange when importing animal feed, as well as potential solutions to these problems.
Batagoda pointed out that most of the issues related to the industry could be solved by way of coming to a collective agreement among all the stakeholders by determining the prices of egg and poultry products accordingly.
He also called on all industry stakeholders to cooperate to promote the sector as President Ranil Wickremesinghe plans to transform the poultry and egg industry into an export business.
Chairmen of the Egg Trade Association, Restaurant Owners Association, All Ceylon Egg Production Association and National Farmer Association Board also presented issues affecting the industry as well as probable solutions to them.
The willingness to reach a collective agreement for the advancement of the poultry and egg industry was a special feature of the discussion while the intervention made by the President’s Office for the security of the industry was also appreciated.
Showers or thundershowers will occur at several places in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts during the afternoon or night and fairly heavy showers above 75mm are likely at some places, the Department of Meteorology said in a statement today (24).
Showers may occur in Northern, Eastern, Uva and North-Central provinces and in Southern coastal areas during the morning.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
| Condition of Rain: |
| Showers or thunder showers will occur at times in the sea areas off the coast extending from Kaluthra to Pottuvil via Galle and Matara. Showers or thunder showers will occur at several places in the other sea areas around the Island. |
| Winds: |
| Winds will be north-easterly and wind speed will be (20-30) kmph. Wind speed may increase up to 40 kmph at times over the sea areas off the cost extending from Chilaw to Trincomalee via Puttalam and Kankasanthurai and from Hambantota to Galle via Matara. |
| State of Sea: |
| Sea areas off the coast extending from Chilaw to Trincomalee via Puttalam and Kankasanthurai and from Hambantota to Galle via Matara will be fairly rough at times. The other sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers. |
MIAP
Central Bank Governor Nandalal Weerasinghe now has to “put his foot in his mouth” as the statement made by him in an interview on 08-12-2022 which appeared to have been withdrawing his repeated accusations of exporters for stashing dollars overseas comes under criticism of Trade unions collective and professionals.
In a lengthy article signed by Swasthika Arulingam, President, of Commercial and Industrial Workers’ Union and United Federation of Labour on behalf over 20 trade unions and associations of public interest and social activists along with 2 professionals, it has charged that suppression of wages in the export sector as a whole is the fundamental factor enabling exporters to illegally retain incomes abroad.
The front page lead article appeared in Daily FT today under the banner headline ‘Misleading responses by CBSL Governor, JAAF, TEA and Rohan Masakorala on illegal foreign exchange transfers highlighted that the the CBSL Governor has misinterpreted the Sri Lankan monetary law by stating that merchandise exporters can repatriate foreign exchange without having to convert such proceeds.
LNW was the first local media which has brought to the notice of CB Governors double standard on foreign exchange stashing overseas, in an article published on 9 Dec 2022. (https://lankanewsweb.net/archives/24970/cb-governor-on-reverse-gear-relating-to-exporters-stashing-dollars-overseas/).
However the latest article on this issue of public interest and very important for the country’s dollar crisis pointed out that the law of the land states that if funds are repatriated the conversion will happen through the local commercial banks by the first week of the following month after the date of repatriation.
This was clearly indicated in Point 8 of CBSL FAQ on Gazette Extraordinary No. 2251/42, dated 28.10.2021). It stipulated that only services sector exporters are authorised by law to repatriate proceeds without converting.
The article of the President of Commercial and Industrial Workers’ Union noted that CBSL Governor recently declared that apparel exporters repatriated only 14% of their export income while their value addition or residual income is around 55% of the gross revenue after meeting various foreign exchange obligations.
He acknowledged, however, that this may be due to exporters utilizing these dollars for approved local purchases. These would include the purchase of both diesel from CPC and LIOC, and domestically produced raw materials which are required for the industry.
It is general knowledge that apparel exporters procure only a few inputs from local suppliers and the rest is all imported. Local suppliers’ inputs usually include knitted fabric, printing and packaging.
They form part and parcel of the input cost of 45% from gross revenue. Therefore, even if all local inputs are procured using foreign currency, they need to be paid from 45% attributed to the input cost from gross revenue, it added.
On the other hand any sensible person would understand it is impossible for the garment factories to consume petroleum to the extent of 41% of their gross revenue.
If their assertions were true, then out of Sri Lanka’s total petroleum expenditure of $ 4.16 billion during the first 11 months of 2022 the garment exporters alone would have consumed 54% or $ 2.24 billion worth of fuel, which is impossible, it emphasized.
It states that “money launderers tend to use international trade to effect their laundering activities by the means of inaccurate pricing (mis-invoicing) of imports and exports to hide the transfer of funds.
For example, over-invoicing of an import will permit the transfer of funds outside the country.” Even the Justice Minister Wijeyadasa Rajapakshe told the Parliament recently that $ 53 billion was transferred out by exporters in the last 12 years.
In this light, trade unions and professionals demand both the CBSL and the Government to take immediate action to repatriate the illegally transferred funds and bring the perpetrators to justice.
They also called on the government to set up a Parliamentary Select committee with competent persons without conflict of interest to investigate the matter and recommend strong punitive and remedial action.
Related Article:
The monthly salaries of the public sector employees to be paid in two instalments have been fixed for January 25 and 26, the Ministry of Finance announced, following weeks of dispute on the matter amidst the financial situation befallen the country.
Accordingly, the monthly salaries of non-executive grade state sector employees will be paid on January 25, 2023 and the salaries of executive grade employees, on the same date or the following date, January 26, 2023, revealed State Minister of Finance Ranjith Siyambalapitiya.
The move to delay the salaries of public sector employees was taken as part of the government’s new income plan for this year which requires a certain period of time to accumulate the expected income, and President Wickremesinghe in his capacity as the Minister of Finance put forward a proposal to manage the government’s expenditure by resorting to such drastic measures in compliance with the Cabinet approval received by the Treasury.
MIAP
The power cuts scheduled for Tuesday (24) as approved by the Public Utilities Commission of Sri Lanka (PUCSL) reveal a slight drop in the period.
Accordingly, a two-hour power cut will occur for zones A, B, C, D, E, F, G, H, I, J, K, L, P, Q, R, S, T, U, V, and W tomorrow.
A forty-minute power cut will occur during the daytime and a power cut of one hour and twenty minutes, at night.
The power cut schedule is revealed despite many requests from a number of parties not to proceed with power cuts during the G.C.E. Advanced Level Examination period, which commenced today (23).
MIAP
The National Consumer Price Index (NCPI) revealed that the headline inflation has dropped to 59.2 per cent for the month of December, 2022.
According to Census and Statistics Department data, the headline inflation indicates a significant drop in comparison with that of November, 2022 which was at 69.8 per cent.
Meanwhile, food inflation y-o-y has also dropped to 59.3 per cent in December last year in comparison with that of the previous month, 69.8 per cent.
Full report: http://www.statistics.gov.lk/WebReleases/NCPI_December_2022
MIAP
The Human Rights Commission of Sri Lanka (HRCSL) in a letter addressed to the Ministry of Power and Energy and the Public Utilities Commission of Sri Lanka (PUCSL) has urged not to proceed with power cuts during the 2022 GCE Advanced Level Examinations.
Accordingly, the HRCSL requests the subject Ministry and the PUCSL to instruct the Ceylon Electricity Board (CEB) to refrain from proceeding with power cuts during the examinations, pointing out that it will enable the advanced level students to exercise their right to education without being obstructed.
MIAP
Fabric imports by the south Asian island nation of Sri Lanka is to remain volatile during this year.
The country’s fabric imports declined last year when the country faced economic problems, but it managed to control the damage quickly and imports rose again in the subsequent months indicating normal textile and apparel manufacturing.
Import declined in March from February 2022, but recovered in April. Sri Lankan inward shipment of the product again increased in May and June but dropped once again in July.
Of the island country’s total textile imports in January 2022 to June 2022, fabric was the most important component, with a contribution of 81.18 per cent.
Sri Lanka imported 39 per cent of fabric from China and 26 per cent from India. Taiwan, Pakistan and Hong Kong were among the top five suppliers.
The country’s imported yarn during the first half of 2022 accounted for 17per cent of total textile imports.
Fiber imports were 0.85 per cent. In comparison, during the first six months of last year, out of Sri Lankan textile imports, fabric imports were 79 per cent, yarn 19 per cent and fiber 0.92 per cent.
Efforts are being made to attract key players in the fabric segment to invest in fabric mills in Sri Lanka
Indian fabric is gaining ground in the Sri Lankan textile market as imports from India are increasing in the island country compared to Chinese supplies.
Sri Lanka’s fabric imports from India are witnessing an upward trend as they jumped by more than fifty per cent in four years, but its import from China remained almost stable during the same period.
Sri Lanka’s fabric imports from India increased to $565.848 million in 2021 from $374.214 million in 2017, according to Fibre Fashion’s market insight tool TexPro.
The inbound shipment had amounted to $426.046 million in 2018 and $485.160 million in 2019, before declining to $410.881 million in 2020 due to the pandemic.
However, it bounced back to $565.848 million in 2021. Sri Lanka imported fabric worth $556.921 million during January-November 2022. The total imports for 2022 are likely to surpass the shipment of 2021.
Fabric imports from China to Sri Lanka were recorded at $888.772 million in 2017 which increased to $897.101 million in 2021.
The shipment increased by just 1 per cent in four years. The imports amounted to $892.740 million in 2018 and $944.202 million in 2019.
It came down to $720.823 million in 2020 but increased to $897.101 million in 2021. Sri Lanka imported fabric worth $829.451 million in the first eleven months of 2022, as per data obtained from TexPro.
Sri Lanka’s fabric imports totaled $2.141 billion in the first eleven months of 2022. China and India were the top suppliers with a total contribution of more than 64 per cent.
The imports from China grabbed a share of 38.73 per cent, while India’s share was 26.01 per cent of the total.
