Colombo (LNW): A Sri Lankan national has been charged with murder today (11) after the body of his wife was recovered at a hotel in Katong, Singapore, Channel News Asia disclosed in a report.
Eshan Tharaka Koottage, a Sri Lankan national of 30 years of age, is accused of murdering his wife Diyawinnage Sewwandi Maduka Kumari sometime between 10.45am and 4.42pm on Sep 9 at Holiday Inn Express Katong Square, located at 88 East Coast Road, Singapore. The charge sheet did not state how the alleged act was committed.
The accused, dressed in a white long-sleeved shirt, was handed the charge via videolink in the State Courts.
The prosecution applied for him to be remanded for one week with permission to take him out for investigations, scene revisitation and recovery of exhibits.
The accused requested through an interpreter to speak to the Sri Lankan High Commission to engage a lawyer and asked for the state to provide him a lawyer, but was told he could not communicate with anyone at this juncture.
He will return to court on Sep 18.
According to the police, the accused went to Marine Parade Neighbourhood Police Centre on Saturday at about 5.05pm to inform police officers that he had killed his wife at the hotel, which is beside i12 Katong shopping mall. He was then arrested.
The 32-year-old woman was found lying motionless with a slash wound in a hotel room when the police arrived. She was pronounced dead at the scene.
A knife, believed to have been used in the incident, was recovered in the hotel room.
Colombo (LNW): Combined earnings of 288 listed companies on the Colombo Stock Exchange in the June 2023 quarter had tumbled by 45% to Rs. 52.7 billion from the March 2023 quarter figure of Rs. 95.3 billion according to Softlogic Stockbrokers.
In comparison with the June 2022 quarter figure of Rs. 169.7 billion, the latest quarter figure is down by 69%.
The Trailing Twelve Months (TTM) earnings too had declined by a similar percentage to Rs. 390 billion.
Whilst Q2 has historically been the lowest earnings period in the CSE, the 1H 2023 earnings at Rs. 148 billion stays beyond the pre-COVID average of Rs. 117 billion, Softlogic Stockbrokers said.
It also said the market remained muted in 1QFY24 whereas the performance on a TTM basis is commendable as it excluded the all-time high quarter performance in 2Q of 2022 which was an outlier.
In its sectoral analysis, Softlogic Stockbrokers said in 2Q23 all the banking sector counters have outperformed against the quarter in 2022 whilst DFCC and COMB have seen a remarkable surge on a YoY basis.
It said lower provisioning backed by the interest rate mismatch led to earnings growth in 2Q23. However, loan book growth remains the key catalyst for the next wave of growth.
The consumer sector as a whole had diminished backed by a volume drop though alcohol and tobacco counters earnings improved.
“With other consumer companies lagging behind, the alcohol and tobacco counters have grown contributing to over 70% of total sector earnings despite a volume drop caused by the increase in excise taxes,” Softlogic Stockbrokers said.
In the Capital Goods and Manufacturing sector, earnings witnessed a slump with the impact coming from a drastic slowdown in JKH.
Softlogic said the sector’s top contributor JKH showed lacklustre performance in the June quarter owing to dollar depreciation and subdued revenue. It also said significant losses incurred in SPEN and BROWN had an impact on sector results.
In the Diversified financial sector, primary dealers held a sizable stake in the earnings as CALT and FCT saw better fortunes due to the sharp decline in interest rates.
“The sector overall performed well with notable growth in all counters though the depletion of LOLC led the whole sector to remain flat on a YoY basis,” Softlogic added.
The materials sector saw leaders such as DIPD and HAYC suffering sluggish momentum whilst TKYO stood out on a YoY basis. The latter’s TTM earnings recovered steeply from the loss incurred in the previous year contributing 18% to the sector’s earnings.
In the transportation sector, EXPO witnessed a sharp decline in earnings for the second consecutive quarter following the cooling off witnessed in the global air and sea freight rates. Overall the transportation sector earnings contracted for the fifth consecutive quarter dropping by over Rs. 37 billion from its peak in 1Q22.
Colombo (LNW): The Government is planning to abolish SVAT on January 1, 2024, despite strong opposition of the business sector and leading chambers of commerce.
President Ranil Wickremasinghe as the finace minister has proposed abolishing SVAT for a more formal VAT repayment method.
However, Ceylon Chamber raises concerns over govt.’s capacity to handle refund claims without SVAT saying abolishing SVAT could disrupt cash flow in various industries.
The government’s aim of abolishing SVAT was to improve existing inefficiencies rather than abolishing SVAT.
The Ceylon chamber of commerce emphasised that a decision as impactful as abolishing the SVAT system should not be taken lightly and must be part of a broader, well-thought-out fiscal and economic strategy.
“Given the current economic climate and the potential ramifications on the export industry, we strongly recommend that the government engages in diligent planning, continuous monitoring, and a consultative approach that includes all stakeholders before making such a significant change,” the Ceylon Chamber stressed.
The finance ministry is set to introduce an efficient and proper refunding mechanism consequent to the removal of simplified value added tax (SVAT) system reverting to normal VAT scheme.
This action has been taken by the ministry to adhere the International Monetary fund (IMF) approved economic reform program, a high ranking treasury official disclosed.
According to tax policy measures stipulated in the program, the fiscal authority is committed to significantly speeding up valid VAT refunds and abolishing the simplified VAT (SVAT) system.
The finance ministry will be revamping the VAT system by removing almost all product specific VAT exemptions, he added.
A resolution pertaining to the Value-Added Tax (VAT) and the Simplified Value-Added Tax (SVAT).will be presented in parliament shortly to revise the provisions applicable to the VAT Act abolishing the SVAT methodology.
Approximately 1.2 percent of the gross domestic product (GDP) from the tax revenue could be increased by reactivating the standard VAT, official document presented to the cabinet indicated.
The Ceylon Chamber pointed out that the move to abolish SVAT comes at a critical time when Sri Lanka has seen a significant dip in exports of over 10 percent in 2023 so far, along with a staggering 19 percent decrease in apparel exports with anticipation for weak external demand to continue.
The existing SVAT system was implemented in 2011 to address long-standing inefficiencies and delays in the VAT refund process managed by the Inland Revenue Department (IRD).
Before SVAT, many exporters were cash-strapped due to delayed VAT refunds—some for up to five or six years.
“Alarmingly, a backlog of long outstanding refunds under the SVAT system itself still remains unaddressed.
This raises questions about the government’s capacity to efficiently handle new refund claims in the absence of the SVAT system, thereby casting doubts over the operational feasibility of the planned move,” the Ceylon Chamber said in a statement.
It pointed out that the elimination of SVAT would immediately affect these exporters and also disrupt cash flow in various downstream industries and suppliers, leading to a ripple effect of financial challenges.
Colombo (LNW): The Sri Lanka Rupee (LKR) today (11) indicates appreciation against the US Dollar at leading commercial banks in the country, compared to last week’s Friday.
Accordingly, Peoples Bank reveals that the buying price of the US Dollar has dropped to Rs. 313.85 from last week’s Rs. 314.34, and the selling price to Rs. 328.60 from Rs. 329.11.
At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 314.24 from last week’s Rs. 314.73, and the selling price to Rs. 325.50 from Rs. 326.
At Sampath Bank, the buying and selling prices of the US Dollar remain steady at Rs. 317 and Rs. 327, respectively.
Colombo (LNW): Japan International Cooperation Agency (JICA) is funding the cabinet appointed senior Lead advisor’s assignment as the Head of Power Sector Reform Secretariat, to provide Strategies to coordinate activities pertaining to the implementation of the reform process of the Power Sector.
This Senior Lead advisor’s assignment is funded by JICA, as a grant in JICA’s technical cooperation.
In March 2023, the IMF Extended Fund Facility program (IMF program) was approved, and reform of state-owned enterprises, including the Ceylon Electricity Board (CEB), is one of the top prioritized issues in the IMF program.
Sri Lanka’s Power Sector Reforms Secretariat (PSRS) is now functioning at the power and energy ministry to kick start Ceylon Electricity Board (CEB) restructuring process next month.
All CEB institutions will be unbundled instead of running all the related entities under one institution in accordance with these structural reforms.
The Asian Development Bank (ADB), the World Bank (WB), and the United States Agency for International Development (USAID) were the other international agencies stepped into support the CEB restructuring process.
Dr. Pradeep Perera an electrical engineer by profession and a former Energy Specialist at the ADB has already been appointed by JICA as its consultant to assist the PSRS. He is the head of the secretariat.
In this context, the government has embarked on power sector reform process to improve efficiency, consumer service, enhance migration to renewable energy and mobilization of private investments to the sector.
JICA as a long-term development partner and funding agency to the power sector is committed to supporting the power sector reforms in Sri Lanka, and this Technical Cooperation will finance the consulting services on the Power Sector Reforms by the Senior Lead advisor for the MOPE (Ministry of Power and Energy).
The said consulting service will not be financed out of the proceeds of the loan facility, and this will be compensated as one of JICA’s Technical Cooperation Projects (TCP) “Grant” where there is no cost to the Government or citizens of Sri Lanka.
The appointed Senior Lead advisor who is having more than 25 years’ experience in number of Asian countries as a senior expert in Asian Development Bank and the World Bank group is expected to play a leading role in the Power Sector Reforms.
These reforms included providing strategic direction to the reform process, coordinating the technical assistance from development agencies, and offering inputs pertaining to technical, energy policy and regulation issues and undertaking stakeholder consultations.
Colombo (LNW): Several ministerial portfolios are likely to be reshuffled within this months, sources closer to the government disclosed.
The reshuffle said to be taking place in light of President Wickremesinghe’s preparations to travel overseas soon will see some of the government Ministers and State Ministers having disputes being changed, whilst some of them who have failed to achieve their designated targets being shifted, according to sources.
Although the final decision is yet to be made in this regard, discussions are already underway within those political parties affiliated with the Ruling Party, they added.
Colombo (LNW): A minor earthquake of 4.65 magnitude in the Richter Scale has been reported in the seas about 300 kilometres North-East of Batticaloa this (11) morning, the Geological Survey and Mines Bureau said.
The earthquake occurred at around 1.30 am in the morning, according to the Bureau.
Colombo (LNW): Sri Lanka’s businesses perform below expectations up to now this year as there was a significant anxiety on economic resurgence among them.
This was largely attributable to the fact that businesses started to show signs of slow recovery, amidst the economic crisis in the first half of this year amidst high interest rates until recently.
Several CEOs indicate that their businesses performed up to some expectations with the highest optimistic outlook signifying that some industries weathered the storm and performed well, despite a challenging macro environment in 2023 up to now.
Pioneering business magazine LMD reported, in its September edition: “Once again, the one-of-kind LMD-NielsenIQ Business Confidence Index (BCI) survey highlights the steep decline in economic sentiment in business circles.”
NielsenIQ’s Market Leader – Sri Lanka Adrian Hakel added: “A large majority of businesspeople feel there is still no conducive environment for investment while the economic climate is poor.”
He explained: “Inflation and taxes are highlighted as the most pressing issues for doing business in the current context, followed by interest rates and the financial instability of both businesses and consumers.”
In the most recent BCI survey, the percentage of businesspeople expressing optimism about the economy ‘improving’ in the next 12 months dropped by 13% (down to 13% in August, from 26% in the preceding month).
“A quarter (25%) envision the economy remaining steady although expectations of a turnaround were short-lived: a notable 62% of poll participants now anticipate a decline – that’s a 17% uptick from July,” LMD noted.
The magazine also reported that: “The lack of optimism about sales volumes in the 12 months ahead continues with one-in-three (31%) expecting an ‘improvement’ as opposed to the 40% recorded in July.”
LMD’s report also revealed: “Slightly more than one-in-five (22%) survey participants foresee sales volumes ‘staying the same,’ marking a fall from 28% in the month prior.
Meanwhile, expectations of sales ‘worsening’ surged to nearly half (47%) – up from 32% in July.”
LMD’s publisher, Media Services, said the latest edition of the magazine will be released shortly. Its digital edition is shared on WhatsApp and the publisher’s social media platforms.
Central Bank will endeavour to attain the projected return for the members of the Superannuation funds
By: Staff Writer
Colombo (LNW): It reveals discussions are ongoing to explore possibility of Treasury intervening to ensure promised returns until 2025 claiming domestic debt restructuring DDR would cause EPF bond portfolio to lose approximately 4%.
The Inland Revenue (Amendment) Bill secured approval through a majority vote during the Committee on Public Finance (CoPF) meeting held in Parliament under the chairmanship of MP Dr. Harsha De Silvalast week.
During the CoPF sitting, officials from the Central Bank clarified that the 30% tax increase, as outlined in the Internal Revenue (Amendment) Bill, specifically pertains to the interest income generated from the bond portfolio.
Additionally, it was highlighted that this tax rate would be lowered to 14% in cases where pension funds engage in the domestic debt restructuring process.
During the session, the committee also raised inquiries regarding the Central Bank’s capacity to assure a 12% return until 2025 and a 9% return thereafter to pension funds involved in domestic debt restructuring.
In response, the Central Bank Governor Dr. Nandalal Weerasinghe expressed their commitment to endeavour to attain the projected return, though they could not provide a guarantee for every member.
He also noted that there were ongoing discussions about the Treasury intervening to ensure the promised benefit is upheld until 2025 if it becomes challenging to maintain this rate.
The Committee suggested that an inflation-adjusted interest rate should be explored to guarantee a positive return for members of the Employees’ Provident Fund.
The Central Bank Governor disclosed that if the Employees’ Provident Fund engages in the local debt restructuring, the opportunity loss for the EPF bond portfolio would be approximately 4%.
Nevertheless, he said if the EPF opts not to partake, the opportunity loss for the bond portfolio would escalate to 21%, primarily due to the elevated tax rate of 30%, as per the recent amendment to the Inland Revenue Bill. Furthermore, it has been noted that all pension funds not qualified for domestic debt restructuring (DDO) would be subjected to a 30% tax increase. This could potentially discourage the creation of new pension funds in the future.
President’s office announces that President Ranil Wickremesinghe is to appoint a Committee chaired by a retired Supreme Court Judge to inquire into the allegations made by UK’s Channel 4 on the Easter Sunday bombings: also says Govt will appoint a Parliamentary Select Committee to investigate the allegation levelled by a former Attorney General that there is a “mastermind” behind the Easter attack.
Ceylon Chamber of Commerce asks the Govt to reconsider the S-VAT abolition: analysts point out that it was the Ceylon Chamber of Commerce that made vociferous representations for the increase of taxes, and the present request is a complete turnaround from its previous stand.
President Ranil Wickremasinghe says plans have been made to establish the 1st Non-Govt Medical Faculty in Sri Lanka in order to expand medical education opportunities and find solutions to the challenges posed by the shortage of doctors: highlights the allocation of the South Asian Institute of Technology and Medicine (SAITM) to the Moratuwa University.
CB Governor Nandalal Weerasinghe says the EPF Bond Portfolio “opportunity loss” will be only 4% if it participates in the Domestic Debt Optimisation: warns the “opportunity loss” to the Bond Portfolio will increase to 21% due to the higher tax rate of 30% as per the latest amendment to the Inland Revenue Bill: Trade Union leaders and representatives dismiss these claims as being blatantly false.
Head of the State-Owned Enterprise Restructuring Unit of the Ministry of Finance Suresh Shah says “Expressions of Interest” will be called from potential investors for the divestment of the Treasury’s stake in Hotel Developers Lanka Ltd. (Hilton, Colombo) & Canwill Holdings (Pvt) Ltd. (Grand Hyatt, Colombo) by the end of this month: Shah is a former Director of Carsons & Lion Brewery and has also been a strong advocate of the sovereign debt default.
SLPP rebel MP and member of the “Nidahasa” group Dr Nalaka Godahewa express alarm about the deepening debt crisis: highlights the critical need for comprehensive reform: says that instead of making progress towards escaping the debt trap, the nation appears to be sinking further into it.
Govt sources say a mini reshuffle of Cabinet and State Ministers will take place soon and that the reshuffle will see some of the Ministers and State Ministers having disputes being changed, and some of the Ministers who have failed to achieve targets, being shifted.
Securities & Exchange Commission says Listed Companies will come under tighter Corporate Governance rules which are in line with international standards, from October 2023: also says high standards of Corporate Governance with accountability and transparency are critical to building investor confidence in the capital market and is therefore a priority on the SEC’s regulatory agenda.
Information & Communication Technology Agency confirms a severe data loss incident affecting all Govt offices using the “gov.lk” email domain, including the Cabinet Office, due to a large-scale ransomware attack between May 17 and August 26, 2023.
St. Peter’s College beat Isipathana College 25-16 to win the Schools Rugby President’s Trophy Knock-out Tournament: accordingly, St. Peter’s emerges as undisputed Champions of both the League Championship as well as the Knock-out Championship.
