- World Bank says Sri Lanka’s output (GDP) is estimated to have fallen by 9.2% in 2022: highest decline since independence.
- Foreign Ministry summons Canadian High Commissioner to the Foreign Ministry and registers strong protest against the designation of the Former Presidents Gotabaya Rajapaksa and Mahinda Rajapaksa for sanctions by the Canadian Govt.
- Former President Maithripala Sirisena’s SLFP, SLPP MPs Dullas Alahapperuma, Wimal Weerawansa, Anura Yapa and several more political factions form a new coalition called “Nidahasa Janatha Sandhanaya”.
- Cabinet Spokesman Minister Dr Bandula Gunawardane says the IMF and other lending bodies have asked Sri Lanka not to print more money: laments the Govt is therefore finding it impossible to conduct most basic functions: in CB Governor Weerasinghe’s first 268 days in office upto 31st Dec’22, a staggering Rs.868 bn had been printed: such rate of printing has been 45% higher than under his predecessors, even while defaulting debt.
- CB Governor Dr Nandalal Weerasinghe tells BBC that China and India must agree to a write-down of their loans as soon as possible: US Ambassador to Sri Lanka Julie Chung asserts the greater onus is on China as the biggest bilateral lender: also says the US hopes that China does not delay because Sri Lanka needs these assurances immediately.
- President Ranil Wickremesinghe meets US Senior Director for South Asia, National Security Council Rear Admiral Eileen Laubacher who expresses the US appreciation for the economic recovery efforts being undertaken by the President.
- Police Computer Crimes Division arrests the woman Adarsha Karandana who accused President’s Parliamentary Secretary Professor Ashu Marasinghe of bestiality through a video made public: arrest based on a complaint lodged by Professor Marasinghe.
- Elections Commission Chairman Nimal Punchihewa says the date of the Local Govt Election will be fixed after receiving nominations.
- SCB Research report says IMF approval for the 4-year USD 2.9 bn facility could be as late as Q2 of 2023: expects negotiations with commercial creditors to be pushed back to H2 of 2023 and a restructuring deal to be reached only by end-2023: warns of severe risks of disruptions to the programme even after the first approval, as periodic disbursements will be contingent on meeting benchmarks.
- Supreme Court affirms conviction and sentence imposed by the Permanent
High Court against former President Maithripala Sirisena’s Chief of Staff Kusumdasa Mahanama and State Timber Corporation Chairman Piyadasa Dissanayaka in the “Kantale sugar factory bribery case” in 2018: Mahanama received 20-years RI and Dissanayaka 12-years.
Sri Lanka Original Narrative Summary: 12/01
Another step to reduce government spending…
The Ministry of Public Administration has informed that all government offices run in private buildings by paying exorbitant rents should be moved to government-owned places.
Neil Bandara Hapuhinna, Secretary of the Ministry of Public Administration, has informed the heads of the relevant institutions in writing that this decision has been taken to reduce the government’s expenses.
Also, government institutions have been advised to use water and electricity sparingly and especially to reduce the use of fans and air conditioners.
Also, the Secretary of the Ministry of Public Administration has informed that the officials working in all government institutions should complete their daily scheduled duties on the same day and will find out if they do so.
A suspect arrested in a drug incident dies
A suspect who was arrested with drugs has died after a struggle while trying to escape, police said.
The deceased was a 42-year-old father of two who was an employee of the Sri Lanka Vocational Training Authority.
According to information received regarding heroin trafficking, the concerned suspect was arrested yesterday afternoon (11) near the Sri Lanka Vocational Training Authority.
Police said that about 15 grams of heroin was found in the suspect’s possession and the suspect said that the drug was obtained from a person in Maradana area.
Later, when the suspect was brought to the Maradana area, he told him that he wanted to drink water near the Nelum Kuluna, where he broke the glass bottle that was given to him and tried to escape by hitting an officer of the police anti-narcotics department. The police said that during the struggle between the police officers and the suspect, he became unconscious and died while being admitted to the Colombo National Hospital.
The police allege that the suspect is a close relative of a drug dealer named “Podi Lassie”.
Govt. calls investors for export-oriented oil refinery in Hambantota
In a bid to boost foreign direct investments (FDIs), the Government has decided to call for an Expression of Interest to set up an export-oriented oil refinery in Hambantota.
“There is a possibility of establishing an export-oriented refinery in the Hambantota area, and it has been observed that many foreign investors are interested to invest in it,” Cabinet Co-Spokesman Bandula Gunawardena said yesterday.
The proposal to this effect submitted by Power and Energy Minister Kanchana Wijesekara was approved by the Cabinet of Ministers.
Given the foreign investor appetite for such projects, Gunawardena said Sri Lanka can have hopes for such projects to attract FDIs. He also said Power and Energy Minister will brief on the project in detail within the week.
In 20219 the the then Prime Minister Ranil Wickremesinghe laid the foundation stone to build an oil refinery in the Mirijjawila Export Processing Zone (EPZ).
The project is a joint venture between Singapore-registered Silver Park International and the Oman Oil Company. Soon after the project was announced by the Board of Investment (BOI) in Sri Lanka, it has been mired in controversies.
The paper examines these controversies and their impact. Introduction – The Proposed Oil Refinery On 24 March 2019, PM Wickremesinghe laid the foundation stone to build an oil refinery in the Mirijjawila Export Processing zone in Hambantota.
The oil refinery, which will span an area of 200 acres of land, will be completed in 44 months with the capacity to refine 200,000 barrels of crude oil per day.
It is ten times the capacity of the island’s only oil refinery situated in Sapugaskanda in Sri Lanka’s Western Province and is estimated to generate US$7 billion (S$ 9.4 billion) of exports by exporting 9 million metric tonnes of petroleum products per annum. The project expects to create 1,500 direct jobs and 3,000 indirect jobs.
The Cabinet of Ministers at its meeting on Monday approved to opening up of the lubricant oil market and the selection of entrants to offer competitive prices.
The proposal to market high-quality, innovative products and allow consumers to have the opportunity to buy lubricants at a more competitive price submitted by Power and Energy Minister Kanchana Wijesekera was approved by the Cabinet of Ministers.
At present, 26 licensed companies including Ceylon Petroleum Corporation are engaged in the lubricant industry in Sri Lanka.
The Ceylon Petroleum Corporation Act (No. 28 of 1961) and its accompanying amended provisions have empowered the Minister in charge of Petroleum Resources Development to select new applicants for entry into the lubricant industry and to grant licenses accordingly.
COPF takes to task Port City Economic Commission over some lapses
The Committee on Public Finance (COPF) has slammed the officials of the Colombo Port City Economic Commission for failing to launch a website for the commission although it has been more than a year since it was established.
COPF chairman MP Harsha de Silva stressed the need for a proper online presence for the Commission, especially in a context where its registrations and submission of applications are expected to be carried out online.
Further, the Port City Economic Commission’s senior officials were denounced for failing to appear before the COPF without providing a notice of absence beforehand.
While emphasizing on the importance of the Port City project for the purpose of generating investments and the work done thus far, the COPF unanimously expressed its dissatisfaction and advised the officials to exercise a better sense of responsibility as professionals handling such project of importance.
Accordingly, the Secretary to the Port City Economic Commission was instructed to submit a by way of writing a reasonable explanation as to why senior officials were not present before the COPF when they had been summoned before the committee on December 21, 2022.
The COPF also inquired into the delay in the submission of audit reports, directing the commission’s officials to ensure the expeditious submission of the annual audit reports.
Colombo Port City (CPC) is projected to have around US $ 4.6 billion positive impact on the country’s balance of payments (BOP) per annum when it reaches the normal operational level after 2041 with an overall US
$ 11.8 billion contribution to GDP per annum, according to a study conducted by PricewaterhouseCoopers (PwC).
PwC highlighted that the country could earn US $ 4.6 billion in net foreign exchange revenue from tourism-related industries and service exports such as IT, maritime, logistics and other professional services.
It projected that service exports would contribute US $ 4.1 billion, followed by US $ 300 million net foreign exchange earnings from the residential sector and US $ 275 million from the retail sector.
PwC noted that US $ 4.6 billion, in addition to the country’s external sector, could significantly reduce the pressure on the BOP.
Sri Lanka imports increased in November 2022 in second consecutive M-o-M
Sri Lanka imports increased in November 2022 marking second consecutive month-on-month (M-o-M) gain and rising to highest since August.
As per external trade data released by the Central Bank recently imports in November amounted to US $ 1.44 billion, up 8 percent from $ 1.33 billion in October and highest since $ 1.48 billion in August.
November data also proves the M-o-M decline seen since August was short lived. However, in comparison to a year earlier, imports were down by 18 percent. In the first 11 months of 2022, imports were down by 8.3 percent to $ 16.8 billion.
CB attributed the decline in expenditure on investment goods mainly contributed to the dip in import expenditure in November 2022. However, it said the M-o-M increase indicates the impact of recent measures to relax some import restriction measures and seasonal demand for imports.
The import volume index declined by 22.7% (y-o-y), while the import unit value index increased by 5.9%, in November 2022, implying that the decline in import expenditure in November 2022, compared to November 2021, was mainly driven by the volume effect.
Expenditure on the importation of consumer goods declined by 27.2% in November 2022, compared to November 2021, driven by lower expenditure on non-food consumer goods.
This decline in expenditure on non-food consumer goods was broad-based but the drop in imports of telecommunication devices (primarily, mobile telephones); medical and pharmaceuticals (base effect of higher expenditure on COVID vaccines in 2021); and home appliances (primarily, televisions) was notable.
Expenditure on food and beverages imports declined by 3.6 percent in November 2022 (y-o-y), mainly with a decline in expenditure on sugar and oils and fats, driven by lower volumes.
However, a significant increase was observed in cereals and milling industry products (primarily, wheat flour). Expenditure on the importation of dairy products (mainly, milk powder) also improved to some extent.
Expenditure on the importation of intermediate goods marginally declined by 0.5 percent in November 2022, compared to a year ago, with a decline in import expenditure on most of the categories of industrial inputs being offset by a substantial increase in import expenditure on fuel.
Categories of intermediate goods that recorded a large decline include, textiles and textile articles (mainly, fabrics); rubber and rubber articles (both natural and synthetic rubber in primary form); plastics and articles thereof (mainly, plastics in primary form); mineral products (mainly, cement clinkers); food preparations (mainly, palm oil); and chemical products.
Import expenditure on fuel, which consists of crude oil, refined petroleum, and coal, increased by 32.6% (y-o-y) to $ 422 million due to non-existent crude oil imports in November 2021. The average import price of crude oil was $ 98.77 per barrel in November 2022.
Import expenditure on coal increased notably in November 2022. In addition, import expenditure on fertilizer increased significantly in November 2022 due to higher import volumes over November 2021, while expenditure on wheat grain also recorded an increase.
Import expenditure on investment goods nearly halved in November 2022, compared to the same month in 2021, resulting from a decline in all subcategories. The decline in the expenditure on machinery and equipment imports was led by office machines and machinery and equipment parts, among others.
Expenditure on all types of goods listed under building materials declined, with a notable drop in imports of iron and steel, cement and articles of iron and steel. In addition, lower expenditure on railway equipment imports led to the decline of import expenditure in transport equipment.
Mattala international airport transforms into a multipurpose business center
Mattala international airport on the southern coast is to transform into a multipurpose business center by implementing business opportunities related to air and non-air operations, official sources divulged.
This airport had the potential to be converted into a business center for foreign investors and therefore measures would be taken to effectively utilize the international airport facilities and assets to create private and public partnership investment opportunities, Government spokesman minister Bandula Gunawardena said.
A proposal by Minister of Ports, Shipping and Aviation Nimal Siripala de Silva to call for expressions of interest from investors in aviation-related enterprises was approved by the cabinet, he added.
The Sri Lankan government has offered a number of concessions for flights willing to land at Mattala and the airport resumed international flight operation last month after a lapse of two years.
The airport is built to carry out air cargo operations and is equipped with a store complex, special technological equipment, including two sophisticated scanners.
Thus, it has the ability to attract cargo companies by promoting these services and offering reduced tax.
Apart from that, establishing training centers related to the aircraft and aviation industry – flying schools, aviation services schools and aircraft maintenance and repair workshops – in the close vicinity can help attract more stakeholders in to the airport.
The focus is on taking measures to effectively utilize Mattala Rajapaksa International Airport facilities and assets by creating public-private-partnership (PPP) investment opportunities,” Minister Bandula Gunawardena said yesterday.
Following the post-war development agenda of making the country a hub in the Indian Ocean Region, Hambantota was planned as an air and marine exchange operation center.
The development of the MIA fitted into this plan. Given the preferable climatic and meteorological conditions, and basic facilities in conformity with international standards, it was expected to be a success with an increased cargo handling, passenger arrivals and air traffic operations, a feasibility study report revealed.
The MIA also expected to play a significant role in the development of the eastern and southern coastlines of the island with a plan of building an investment center in Hambantota.
It was also expected to facilitate the creation of economic and investment opportunities in the island.
The development of industries and businesses in the area is important to attract people who will use the airport as their transport link. In this regard, increasing the production of products to be exported through the MIA should be given adequate attention.
This requires additional investment to provide resources, consultation and training for small and medium enterprises.
According to the Tourism Board of Sri Lanka, every year, a significant number of tourists visit cultural sites and nature parks in close proximity to the Mattala Airport
The Supreme Court upholds the prison sentence of Maithrie’s former chief of staff
The Supreme Court today (11) upheld the prison sentences given by the three-judge High Court of Colombo to Kusumdasa Mahanama, the former chief of staff of former President Maithripala Sirisena, and Piyadasa Dissanayake, the former chairman of the State Timber Corporation.
That was after announcing the decision of the appeal they had filed.
In 2018, the two were arrested by Bribery or Corruption Investigation Commission officials while demanding a bribe of 54 million rupees from an Indian businessman and receiving 20 million rupees.
In relation to that, a case was filed against them under 24 charges before the three-judge High Court of Colombo, where Kusumdasa Mahanama was sentenced to 20 years imprisonment with hard labor and a fine of 65,000 rupees and Piyadasa Dissanayake was sentenced to 12 years imprisonment with hard labor and a fine of 50,000 rupees.
A program to raise awareness about parliamentary Procedures and Practices
A program to raise awareness about parliamentary Procedures and Practices was held at Hungama Vijayaba College, under the patronage of the Deputy Speaker Hon. Ajith Rajapaksa, January (09).
The main objective of the said program was to develop the knowledge of the school students about Parliamentary procedures and practices and the Assistant Secretary General of Parliament Mr. Tikiri K. Jayathilaka and Director Legislative Services and Director Communications (Acting) Mr. H.E. Janakantha Silva contributed as resource persons in the program.
Delivering a speech on the role of a Deputy Speaker of the Parliament the Deputy Speaker Hon. Ajith Rajapaksa stated that Parliament plays a big role in securing the democracy but the media does not properly communicate it to the citizens. Because of this, the attitude of the citizens towards the parliament is not appropriate currently. Therefore, he pointed out the significance of conveying the role of Parliament to the people through the media.
Assistant Secretary General of the Parliament Mr. Tikiri K. Jayathilaka delivered his speech on the topic of our Parliament and the contribution of the future citizen at the occasion while Director (Legislative Services) and Director Communications (Acting) Mr. H.E. Janakantha Silva delivered his speech on Duties of Parliament and Legislative Process.
This special awareness program is another phase in a series of awareness programs carried out by the Department of Communication of the Parliament of Sri Lanka over the past few years.
The discussion between the President and the Tamil political parties ends without an agreement
Selvam Adaikalanathan, leader of the Tamil Eelam Liberation Organization (TELO), says that the discussion held between President Ranil Wickramasinghe and representatives of Tamil political parties yesterday (10) ended without an agreement to find a solution to the national problem.
He mentioned that the government has asked for another week to reach an agreement on the three basic proposals presented by their side last month, including the return of acquired lands in the North East and the full enforcement of the 13th Amendment.
Accordingly, he said that the discussion round which was scheduled to be held on the three days of January 10, 11 and 12 ended yesterday.