- World Bank projects Sri Lanka to have the lowest growth (-4.2%) among 148 countries in 2023: in January 2022, Sri Lanka’s 2022 growth was projected at +4% while the projection for 2023 was +4.5%: however, all estimates reversed dramatically after the debt default announcement of 12th April 2022, and economy commenced contraction.
- Central Bank to issue its largest-ever stock of Treasury Bills in its 100-year history next week, with a staggering issue of Rs.120 bn: previous highest T-Bill issue was Rs.98 bn issued on 5 occasions – 8Jun’22, 15Jun’22, 14Dec’22, 28Dec’22 & 4Jan’23: T-Bill investments generally considered “risk-free” as the CB is mandated to “print” money and repay, if the Govt is unable to pay.
- World Bank says Sri Lanka’s food inflation in 2022 of 64% was the 6th highest in the world: the countries ahead were Zimbabwe (376%), Lebanon (171%), Venezuela (158%), Argentina (94%) and Turkey (77%).
- Professionals including medical practitioners stage protest outside Finance Ministry and demand fair taxes: voice opposition against the increasing cost of living: Police, Riot Police and Navy force the protestors to spread out.
- Public Utilities Commission agrees to the Cabinet Decision on a retrospective electricity tariff hike with immediate effect, after a meeting with President Ranil Wickremesinghe.
- National People’s Power Leader Anura Kumara Dissanayake proposes 75% cut to the salaries of Local Govt councillors if the Govt claims it lacks the funds to hold Local Govt elections.
- Fitch Ratings downgrades National Long-Term Ratings of 5 Finance and Leasing companies – People’s Leasing, Central Finance, CBC Finance, HNB Finance and Siyapatha Finance: downgrades follow similar recent action on 10 banks and several insurance companies, consequent to the debt default.
- Govt stipulates new Maximum Retail Price for eggs for the 2nd time: white egg – Rs.44, brown egg – Rs.46.
- Senior Govt source reveals Finance Ministry is struggling to “find” Rs.55 bn to pay for coal shipments: Rs.20 bn “found” and negotiations said to be ongoing to “find” balance: CEB Engineers warn of dire consequences if money is not “found” and coal is not imported by the month’s end.
- Industry report reveals Tea exports dropped to a 25-year low in 2022, hit by the fertilizer shortage due to agrochemical ban: only 250 mn kgs of tea was exported in 2022 – 13% down, compared to 2021 and lowest since 1997.
Sri Lanka Original Narrative Summary: 22/01
Fairly heavy showers above 75mm, showers or thundershowers expected at some places
Cloudy skies are expected over most parts of the island with cold weather, and showers or thundershowers will occur at times in Uva and Eastern provinces and in Hambantota and Polonnaruwa districts, announced the Department of Meteorology today (22).
Fairly heavy showers above 75mm are likely at some places, and showers or thundershowers may occur at several places elsewhere during the afternoon or night.
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 will occur at times in the sea areas off the coast extending from Hambanthota to Kankasanthurai via Batticaloa, Trincomalee and Mullaitivu. |
| Winds: |
| Winds will be north-easterly and wind speed will be (25-35) kmph. Wind speed may increase up to (40-50) kmph at times over the sea areas off the cost extending from Colombo to Galle via Puttalam, Kankasanthurai, Trincomalee, Batticaloa and Hambantota. |
| State of Sea: |
| Sea areas off the coast extending from Colombo to Galle via Puttalam, Kankasanthurai, Trincomalee, Batticaloa and Hambantota, will be rough at times. The other sea areas around the island may be slight to moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers. |
MIAP
Bus driver of Nanuoya accident killing seven arrested
The driver of the of the bus which collided with a three wheeler and a van in Nuwara Eliya – Nanuoya causing a fatal accident has been arrested by the Police yesterday (21) eve, reports claim.
The accident occurred on the night of two days ago (20) killed seven persons including six persons inside the van including three children and the three wheeler driver.
Initial probe into the accident uncovered that the negligent driving of the bus driver where he was revealed to have driven too fast has caused the collision, hence the arrest.
MIAP
President instructs the implementation of a youth-led development plan for SL
In conjunction with the 75th Independence Day, under the theme, ‘National Youth Platform’, President Ranil Wickremesinghe has instructed to implement a youth-led development project covering the entire island to make Sri Lanka a developed country by the 100th Independence Celebration (2048) through youth ideas, skills and interventions.
A discussion regarding this program was held yesterday (19) at the Presidential Secretariat under the patronage of the President. During this discussion, the plans related to the development of the major cities in each district as tourist cities formulated by the lecturers and students of all the universities were presented to the President.
Accordingly, the Jaffna and Vavuniya University, focusing on the Jaffna district and the Kelaniya University and Rajarata University presented tourism plans related to the Anuradhapura district.
The Ruhuna University, Sabaragamuwa University and Sir John Kotelawala Defence University jointly submitted plans for the Galle districts and the Colombo University, Sri Jayawardenepura University, University of Fine Arts and the Moratuwa University jointly submitted their plans for the Colombo district.
Peradeniya, Wayamba and Uva Wellassa Universities jointly presented the plans related to the Kandy district while the Eastern and South Eastern Universities presented the plans for the Batticaloa district.
Expressing his appreciation for all the plans that were submitted, the President said that private-sector financial assistance could also be sought to support this program.
Pointing out that it is a very good trend for the university community to contribute to the development of the country, Mr Ranil Wickremesinghe appreciated the university community’s involvement in these projects and commended their contribution.
Senior Advisor to the President on National Security and Chief of Staff to the President Sagala Ratnayake, Secretary to the President Saman Ekanayake, Chairman of the University Grants Commission Dr Sampath Amaratunga, Secretary to the Ministry of Finance Mahinda Siriwardena, University Vice Chancellors and officers of line institutions joined this discussion through online technology.
PMD
Michelin Expands Operations in Sri Lanka
Michelin, the French multinational tyre manufacturing company based in France.
The second largest tyre manufacturer in the world behind Bridgestone is expanding its business in Sri Lanka with an additional value of USD 20.94 M.
The agreement in this regard was signed at the BOI head office last week.
GR’s office refuses rumors of him using 19 vehicles for his personnel use
Former President Gotabaya Rajapaksa’s office has strongly refuted rumors of him using 19 vehicles for his personnel use and also Rs. 950,000 for his food.
In a statement issued by Sugeeshwara Bandara, private secretary to the Seventh Executive President Rajapaksa, said the allegations were false and misleading the public.
“Firstly, it should be mentioned that former President Rajapaksa did not misuse any vehicle during his tenure as the President. People are well aware that the official vehicle reserved for the President was not used on any other occasions except during national celebrations”, he said adding that 19 vehicles have been reserved for his personal use is completely false.
According to Bandara, the provisions are being made for the security of each former president and vehicles are allocated for his security units and under those provisions, the vehicles have also been allocated to the security unit deployed for the protection of the former President Rajapaksa.
“ The given vehicles are used only by the relevant security unit and are never deployed for former President Rajapaksa’s personal use and he is only using his own private vehicle,” he said in the statement.
It further stated that the Presidents’ Entitlement Act No. 4 of 1986 specifies the allowances, financial and other provisions that a President is entitled to after his retirement.
“I would like to emphasize with responsibility that apart from the financial allocations given for former presidents under the above mentioned Act, no extra allocation has been allocated to the former President Rajapaksa,” he said.
MAS to launch Joint Venture with Tata Group’s Trent in India
MAS Amity, a subsidiary of MAS Holdings SL based largest apparel tech company in South Asia , has signed a Joint Venture Agreement with Tata Group’s Trent Ltd., setting up an entity in India for the joint development of business into intimate wear and other apparel related products.
Over time, MAS and Trent would pool their domain expertise to undertake design, development and manufacturing of a range of intimate wear and other apparel products. Initially, the joint venture would facilitate design and sourcing of related products.
MAS Holdings Chairman Mahesh Amalean said: “The significance of our partnership with Tata lies in our shared sense of values and an appreciation of the enormous business opportunities that the Indian market affords.
“This JVA will help leverage our combined capabilities, connecting MAS’ expertise in product creation and manufacturing with Tata Trent’s expertise in Indian retail.
This partnership further aligns with MAS’ long-term intent to scale business and expand our presence in India.”
Tata Trend Chairman Noel N. Tata said: “We see significant opportunities to leverage the growing reach of our brands to build a differentiated proposition in lingerie, activewear and related categories. MAS brings impeccable capabilities and track record in the manufacture of high-quality products in this space.
“This collaboration between Trent and MAS would deepen Trent’s strategic commitment to offer fully owned brands at its retail stores and enable MAS to expand their international presence further.
We are excited at the prospects of leveraging our joint synergies and deliver greater value to our customers.”
MAS Holdings, the largest apparel tech company in South Asia, is among the most recognized design-to-delivery solution providers in apparel and textile manufacturing.
With a global community of over 118,000, today, MAS’ design and manufacturing spans across 17 countries. The MAS portfolio has expanded exponentially; into wearable technology, FemTech, start-ups, logistics and fabric parks worldwide.
Over 30 years, MAS has gained global recognition for its ethical and sustainable working environment as well as its craftsmanship and product excellence.
Today, the MAS Plan for Change outlines the company’s commitment to create sustainable change under the three pillars; products, lives, and planet.
Through this, MAS aims to inspire all its employees to be changemakers, enabling dreams and enriching the fabric of life on our planet.
Trent is part of the Tata Group and operates a portfolio of retail concepts.
The primary customer propositions of Trent include: Westside, one of India’s leading chains of fashion retail stores, Zudio, a one stop destination for great fashion at great value and Trent Hypermarket, which operates in the competitive food, grocery and daily needs segment under the Star banner.
Westside stores have a footprint of predominantly around 18,000-34,000 sq. ft. across over 127 cities. Westside stocks a broad range of products ranging from apparel, footwear, accessories to cosmetics and perfumes to home accessories and gifts amongst others.
China to recommence outbound group travel to Sri Lanka
China will resume outbound group travel to a selected group of countries, including Sri Lanka, early next month, the Chinese Ministry of Culture and Tourism said.
The Ministry said in a notice on its website on Friday that a pilot program will take effect on Feb 6 to allow travel agencies to open outbound group travel for Chinese citizens to 20 countries – Thailand, Indonesia, Cambodia, the Maldives, Sri Lanka, the Philippines, Malaysia, Singapore, Laos, the United Arab Emirates, Egypt, Kenya, South Africa, Russia, Switzerland, Hungary, New Zealand, Fiji, Cuba and Argentina, China Daily reported.
Travel agencies will also be allowed to offer flight and hotel packages to tourists starting the same time, according to the notice.
The decision was made at the request of the foreign affairs panel of the State Council’s Joint Prevention and Control Mechanism, the country’s top COVID-19 response task force, and was based on considerations over COVID-19 control measures and socioeconomic development, the ministry said.
The notice stipulates that tour organizers strictly obey official COVID-19 measures at home and abroad.
Tourists will be urged to make sure they are not infected with the highly contagious disease before boarding flights, pay attention to their own safety and health and follow local COVID-19 rules during the journey, and comply with epidemic prevention requirements after returning to their hometown.
On social networking platform Sina Weibo, many micro-bloggers said in comments about the news that they were eager to travel overseas.
The National Health Commission announced on Dec 26 that China would scrap the quarantine requirement for international arrivals starting on Jan 8, as it downgraded management of COVID-19 from Class A to Class B.
Data from Trip.com, a major tourism platform in China, showed just half an hour after the release of the announcement, the search volume for outbound flight tickets and overseas hotels reached a three-year high on the company’s search engine, China Daily reported.
In 2019, Chinese people made 155 million outbound trips, according to data from the Ministry of Culture and Tourism.
Showers or thunder showers will occur at times in Uva, Southern and in Eastern provinces.
The prevailing dry weather condition in the Eastern and Uva Provinces is expected to change during the next few days.
Showers or thunder showers will occur at times in Uva, Southern and in Eastern provinces.
Fairly heavy showers above 75mm can be expected at some places in Uva province and in Ampara and Batticaloa districts.
Showers or thundershowers will occur at several places in Sabaragamuwa, Western, Central and North-Western provinces during the afternoon or night.
SL apparel sector up in arms against removal of protection from anti-competitive practices
Sri Lanka’s apparel sector, a major much needed foreign exchange earner for the country has expressed concerns on the withdrawal of protection granted to importers and exporters from anti-competitive practices of service providers for many years.
The Government has taken action to withdraw a gazette which has been protecting importers and exporters from anti-competitive practices of service providers for many years.
Issuing a statement, the Joint Apparel Association Forum (JAAF) said it was perturbed to learn that the Government was planning to withdraw Gazette No 2041/10 dated 17th October 2017 of the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No 10 of 1972.
Gazette No 2041/10 which is the amended Gazette No 1842/16 of 27th October 2013 reconfirmed four cardinal principles to protect both importers and exporters from service providers who may charge exorbitant fees in addition to freight for the carriage of goods.
However all importers and exporters of the country, including the apparel industry represented by JAAF and the Sri Lanka Manufacturers and Exporters of Rubber Products (SLAMERP), have been dismayed by this move.
The Minister of Ports issued the new Gazette No 2302/24 of 20th October 2022 introducing a maximum delivery order fee and new additional charges of US$8/ Cubic Meter under a broader category of a “cost recovery charge”.
Thus, Iit will be ontravening the cardinal principles and protections guaranteed to Sri Lankan importers and exporters, curtailing economic activity and driving up the costs of all purchases.
The entire import and export industry, including JAAF, vehemently objected to the regulations introduced under Gazette No 2302/24.
The apparel sector forum says the Gazette violates the core principle of all-inclusive freight cost that requires the contracting party to bear the full cost of such freight.permitting freight forwarders and shipping agents to charge fees from third parties who are not party to the original contract.
New additional charges will undoubtedly increase the cost of freight, for both imports and exports, which will lead to higher costs of living for the public, and reduce the competitiveness of exports, at a time when export growth is crucial to the recovery of the economy, it added.
Moreover, to the further dismay of importers and exporters, on 5th January 2023, the Minister tabled a supplement in Parliament to amend the Licensing of Shipping Agents Act No 10 of 1972 to allow himself the authority to set Delivery Order and other fees, whereas the previous Gazette demanded the service providers to obtain the approval of DGMS to do so.