By: Staff Writer

Colombo (LNW):India is likely to grant a 12 year moratorium to repay its debt to help ease the financial burden on the island nation, India’s Export Credit Guarantee Corporation (ECGC) Ltd’s chairman-cum-managing director M. Senthilnathan said, Indian news agencies reported.

This debt repayment concession offered by India to the island nations comes at a time, where President Ranil Wickremesinghe is visiting India for a day on July 21 to consolidate ties with New Delhi, which gave nearly US $ 3.5 billion in emergency aid to stabilize the island nation.

President Wickremesinghe will call on the entire Indian leadership from President Droupadi Murmu and Prime Minister Narendra Modi apart from holding delegation-level talks.

In 2022, as Sri Lanka’s economy entered into its biggest crisis since independence, the emergency financing extended or facilitated by India amounted to about $4 billion. Sri Lanka used about $3.3 billion during the course of the year, especially in the tumultuous first seven months. India became Sri Lanka’s lender of last resort even as the island entered sovereign default.

Sri Lanka, facing its worst economic and political crisis in over seven decades, owes $7.1 billion to bilateral creditors— $3 billion owed to China, $2.4 billion to the Paris Club and $1.6 billion to India.

“But the interest rate will come down. This is a situation induced by inflation and because of the fallout of (Ukraine) war. You accommodate them for the next 5-6 years and later the markets will open up,” Senthilnathan added.

Earlier this year, the International Monetary Fund (IMF) approved a $3 billion loan programme for Sri Lanka to help stabilize its economy and begin restructuring its debt.

The island nation received an immediate disbursement of about $333 million under the 48-month programme approved by the IMF.

Senthilnathan added that the National Export Insurance Account, managed by the ECGC, has received close to ₹4,500 crore worth of claims from exporters facing default in countries such as Sri Lanka, Zambia, Suriname and Ghana which faced extreme economic hardships after covid-19 and the Ukraine war.

Besides, its reserves have grown 26% to a 17-month high of $3.5 billion in May, helped by stronger remittances and tourism earnings.India had earlier extended a $1 billion credit line for Sri Lanka by a year.

The credit line, part of a $4 billion emergency assistance extended by India during the peak of Sri Lanka’s financial crisis early last year, was scheduled to end in March.

Sri Lanka has requested India to settle payments due to the country under the Asian Clearing Union mechanism and credit lines given in 2022 over 5 years, Indrajit Coomaraswamy, an advisor the island’s government said.

Sri Lanka is negotiating with India to settle the money over a 5-year period, Coomaraswamy, a former central bank governor disclosed.

Sri Lanka’s central bank owed the ACU 2.0 billion US dollars to the Asian Clearing Union according to a yearend debt statement, issued by the Finance Ministry. Sri Lanka owned India, 1,621 million dollars according to ACU data by year end, excluding interest.

Dr. Bandula Gunawardhana, the Minister of Transport, Highways, and Mass Media, held a special discussion with Dr. Benjamin P. Reyes, the Secretary General of the “Colombo Plan,” at the Minister’s office. During the meeting, Minister Dr. Bandula Gunawardena provided an overview of the current situation in the country and highlighted the Government’s ongoing efforts to ensure stability.

Emphasizing the Government’s commitment to driving the economy forward, Minister Dr. Bandula Gunawardena underscored the special attention given to digitization as a catalyst for economic growth and development.

In response, Dr. Benjamin P. Reyes commended Sri Lanka on its successful return to economic stability. He expressed the willingness of the Colombo Plan to support the Government’s development programs and initiatives in drug control efforts.

During the discussion, the representatives of the Colombo Plan extended an invitation to the Minister to participate as the Guest of Honour at the upcoming 72nd celebration of the “Colombo Plan” process, scheduled to be held on July 12.

According to recent data released by the Sri Lanka Tourism Development Authority, the island nation has witnessed a significant influx of Indian tourists, signaling a positive upturn in Sri Lanka’s tourism industry. In the month of June alone, over 26,000 Indian tourists visited Sri Lanka, contributing to a total of 116,000 Indian arrivals by the end of June. With a total of 624,000 tourist arrivals, India remains the leading source market for Sri Lanka’s tourism, as reported by DD.

Following setbacks such as the 2019 Easter Sunday attacks, the COVID-19 pandemic, and subsequent lockdowns, Sri Lanka has been diligently working to revive and promote its tourism sector. To attract Indian visitors, Sri Lanka has identified 50 sites associated with the Ramayana, aiming to enhance tourism ties between the two countries.

In parallel, India and Sri Lanka have been actively exploring initiatives to promote the use of local currencies for trade settlements, fostering economic cooperation. Earlier this year, Indian High Commissioner Gopal Baglay highlighted the importance of creating mechanisms for Indian tourists to transact in Indian rupees, which would further elevate Sri Lanka’s appeal as a preferred tourist destination.

In May 2023, Sri Lanka’s tourism industry showcased promising growth, earning a total of $131 million. According to the Central Bank of Sri Lanka, this represents a significant increase compared to May 2022, with tourism income experiencing a remarkable growth of 202 percent. The number of foreign tourists visiting Sri Lanka also witnessed a substantial rise, with 83,309 tourists arriving in May 2023, marking a 175.8 percent growth compared to the same period in the previous year.

Pradeep Nilanga Dela, the Diyawadana Nilame of Sri Dalada Maligawa, vehemently dismissed false news circulating on social media regarding the alleged disappearance of Tusker Thai Raja, a revered elephant donated by Thailand to the temple in Kandy and presently housed at the Suduhumpola Temple.

In response to the baseless rumors, the Diyawadana Nilame clarified that the elephant, which has been in musth for the past two months, is securely kept at the Suduhumpola temple premises. He emphasized that an elephant in such a state cannot be transported by vehicle or on foot, a fact that animal welfare organizations and activists spreading false information on social media should recognize.

The Diyawadana Nilame also highlighted that the Ambassador of Thailand, during a recent visit to Kandy, explicitly stated that the Thai Government has not made any decisions to reclaim the elephants they donated to the Sri Lankan government, even after the return of Tusker Muthu Raja to Thailand. He denounced certain animal rights organizations for spreading completely false rumors on social media.

While acknowledging that there may be isolated instances of improper treatment, the Diyawadana Nilame affirmed that overall, Sri Lankan owners of tame elephants take excellent care of them. He expressed deep disappointment in international NGOs disseminating false news that tame elephants in Sri Lanka suffer from harassment and abuse, emphasizing that such claims do not reflect the reality of the situation.

Furthermore, the Diyawadana Nilame underscored his strong opposition to the spreading of false rumors as part of an international mudslinging campaign by certain NGOs, urging them to verify facts before making unfounded accusations. He concluded by stating that the current population of tame tuskers and elephants in Sri Lanka is less than 100, highlighting the significance of preserving and protecting these majestic creatures.

Madhav Kumar, the Chairman of CPN (Unified Socialist) and former Prime Minister of Nepal, expressed the need for Buddhist countries to introduce direct flights to Lumbini International Airport, aiming to enhance accessibility for pilgrims visiting this revered Buddhist site. During a meeting with Sri Lankan Prime Minister Dinesh Gunawardena at Temple Trees on Wednesday, Madhav Kumar highlighted the existing Kathmandu-Colombo flight route and suggested its extension from Lumbini to Colombo, enabling a smooth flow of tourists and pilgrims to the birthplace of the Buddha.

As the leader of Nepal’s ruling coalition, Madhav Kumar also engaged in discussions with Prime Minister Gunawardena regarding the expansion of bilateral cooperation into new sectors such as agriculture, mutual exchange of expertise in industries, and collaboration in the field of hydroelectricity.

Madhav Kumar’s visit to Sri Lanka coincides with the commemoration of the 80th anniversary of the establishment of the Sri Lankan Communist Party. The meeting at Temple Trees saw the participation of MP Yadamini Gunawardena and Nepal’s Ambassador to Sri Lanka, Bashu Dev Mishra.

The two-day Startup20 Shikhar Summit in Gurugram, organized under India’s G20 Presidency, turned out to be an overwhelming success with Brazil agreeing to continue with the development of the Startup 20 ecosystem when it takes over the G20 presidency next year and Saudi Arabia becoming the first country to support the $1 trillion annual fund for moving ahead with the plan.

The summit that concluded today served as a platform for fostering innovations, collaborations, knowledge sharing and strategic alliances within the global startup ecosystem.

During the closing ceremony, Dr. Chintan Vaishnav, Chair of Startup20, officially handed over the torch to Brazil, as the country will take over the G20 presidency for the next year and has committed to continue the Startup20 initiative in 2024.

“This continuation of Startup20 with Brazil’s presidency represents a true success for the group in the advancement of the startup ecosystem worldwide,” according to an official statement issued after the summit.

“Highlighting the importance of Startup20, Saudi Arabia, represented by HRH Prince Fahad Bin Mansoor, emerged as the first country to endorse and support the Startup20’s call to allocate an ambitious sum of $1 trillion per annum into the startup ecosystem by 2030,” the statement disclosed.

HRH made this announcement during his address at the Gurugram Shikhar Summit, recognizing the potential of startups in making startups a true force for the global good.

In his address, Dr. Chintan hailed this announcement as a momentous occasion at the Startup20 Gurugram Shikhar Summit, underscoring Saudi Arabia’s steadfast dedication to fostering global innovation and entrepreneurship.

“By pledging support for the $1 trillion funding milestone, Saudi Arabia sets a precedent for other nations to follow, demonstrating their commitment to driving a disruptive innovation ecosystem and propelling economic growth,” Vaishnav said.

He also underscored the importance of specific action points outlined in the Policy Communiqué while officially releasing the document. The key action points in Policy Communiqué includes the creation and adoption of a definition framework for startups, creating a networked institution to support startups and ecosystem stakeholders across G20, increasing and diversifying access to capital, easing market regulations for startups, and prioritizing the inclusion of underrepresented communities within the startup ecosystem as well as the scaling up startups of global interest. These measures aim to foster a conducive environment that empowers startups to innovate, grow, and address global challenges effectively.

“The Policy Communiqué sets the direction for G20 countries to scout promising startups intensively, fund them collaboratively, mentor them contextually and scale them globally,” Vaishnav said.

Besides, the Startup20 Gurugram summit also showcased some of the outstanding national and international startups. The event also marked a vibrant evening of cultural showcases and performances.

India has emerged as the second biggest startup hub in the world with the number of startups increasing 300-fold in the last 9 years of the Modi government. India’s startups have been successful in creating over 40 lakh direct and indirect jobs and the country has brought this vision to the G20 table as well so that it can be replicated in other countries as well.

Logathayalan

The Ministry of Foreign Employment and Labour has released a statement outlining the 34 key points of the proposed Employment Act, which is aimed at introducing a new unified labor law system in Sri Lanka.

The key points highlighted in the proposed Employment Act are as follows:

1. Prevention of discrimination in employment or in the workplace.
2. Prevention of all forms of harassment and sexual violence in the workplace.
3. Occupational safety, health, and welfare of employees.
4. Removal of restrictions on the payment of gratuity.
5. Introduction of equal payment methods for male workers in night shifts.
6. Ensuring similar working terms and conditions for all employees.
7. Mandating employers to provide written appointment letters to employees.
8. Introduction of a 5-day week and flexible working hours.
9. Relaxation of legal provisions for night work of women employees.
10. Standardization of overtime working hours and calculations.
11. Legal provisions for part-time employment.
12. Regulations for trainees, apprentices, and working students.
13. Provision for paternity leave.
14. Rights and duties of employees working from home.
15. Procedure for employing foreign employees in Sri Lanka.
16. Inclusion of domestic work under labor law.
17. Establishment of a National Remuneration Council for determining minimum wages.
18. Time-bound provision of final disciplinary decisions.
19. Prohibition of unfair labor practices by trade unions.
20. Opportunity for legal action against unfair labor practices.
21. Mandatory deduction of trade union membership fees from remuneration.
22. Increased minimum number of members required to form a trade union.
23. Mandatory representation of women on trade union executive boards.
24. Requirements for notification and majority consent in strikes.
25. Introduction of workplace rules for employers.
26. Simplified termination process for redundant jobs.
27. Permission for temporary layoffs under certain circumstances.
28. Provision for one month’s advance notice for voluntary resignations.
29. Revision of retirement age.
30. Standards for dignity of labor in employment or profession.
31. Establishment of a social security system.
32. Performance evaluation of employment.
33. Regulation of Man Power Supply institutes and Employment Agencies.
34. Introduction of E-Wages system with legal provisions.

These key points aim to enhance labor rights, workplace safety, and fair employment practices in Sri Lanka as part of the proposed Employment Act.

The Sri Lankan Rupee has continued to maintain its stability against the US Dollar, with commercial banks in Sri Lanka reporting rates in the Rs. 300 range.

Peoples Bank has set the buying rate of the US Dollar at Rs. 302.17, while the selling rate stands at Rs. 320.05.

According to Commercial Bank, the US Dollar’s buying and selling rates are Rs. 300.88 and Rs. 316, respectively.

Sampath Bank has established the buying rate of the US Dollar at Rs. 302, with the selling rate at Rs. 317.

Overall, these rates indicate a consistent position for the Sri Lankan Rupee against the US Dollar in the current market.

1. Minister of Buddhasasana, Religious and Cultural Affairs Vidura Wickramanayaka, stated that new legislation will be enacted to combat all actions that jeopardize religious unity: Reiterates that under the guise of freedom of speech or religion, no one has the right to offend any religion.
2. FitchRatings has downgraded Sri Lanka’s Long-Term Local-Currency (LTLC) Issuer Default Rating (IDR) to ‘C’ from ‘CC’. The issue ratings on local-currency bonds have also been downgraded to ‘C’ from ‘CC’.
3. Power and Energy Minister says proposals received from Russia, US, India, and European countries Says CEB’s 2023-2042 generation does not include nuclear power. Dismisses claims of a deal with Russian nuclear giant Rosatom, emphasising the need to determine the appropriate technology for the country and pre-plan various factors.
4. Daily air flights between Jaffna, Sri Lanka and Chennai, India will commence from July 16, 2023, Alliance Air announced.
5. Talia Peiris, a talented and passionate Sri Lankan-American teenager, has been crowned Miss California Teen USA 2023. The young beauty queen, with her remarkable poise and dedication, has become the first-ever Sri Lankan-American to claim the prestigious title.
6. Sri Lanka’s cinema industry is furious over the National Film Corporation’s (NFC) move to shut out the private sector by going back on the industry’s partial liberalisation and taking up a larger role in distributing films. Cinema owners and private sector importers and distributors warned that the move would be disastrous and put millions of investments made since 2001’s partial deregulation, and those planned for the future, at risk
7. The cement manufacturers have reached an agreement with the government to set a maximum retail price for a 50 kilogram bag of cement, announced Trade Minister Nalin Fernando. The maximum retail price of a 50 kg bag of cement will be Rs. 2,300.
8. The Second Reading of the proposed Anti-Corruption Bill was passed in Parliament yesterday without a vote and subjected to subsequent amendments. Accordingly, the Committee Stage to introduce amendments to the Act is scheduled to be held on July 19.
9. Diyawadana Nilame of Sri Dalada Maligawa Pradeep Nilanga Dela says that false news have been circulated on social media by some stating that Tusker Thai Raja donated by Thailand to the Sri Dalada Maligawa in Kandy and presently housed at the Suduhumpola Temple has gone missing. Adds that he is totally against spreading false rumours as a mudslinging campaign internationally by certain NGOs without knowing true facts and presently the number of tame Tuskers and elephants living in Sri Lanka are less than 100.
10. The fifth edition of the men’s Emerging Asia Cup will be played in Sri Lanka from July 13-July 23. Eight Asian teams will feature in the tournament, with seven of them being ‘A’ teams of their respective countries. The eight teams are divided into two groups of four each. India are placed in Group A alongside Nepal, UAE A, and Pakistan A.