1. Dept of Excise announces increases of all Excise Duty rates: as a result, prices of all varieties of hard liquor to increase by around Rs.300 per bottle: beer to increase by around Rs.50: each cigarette to increase by Rs.25.
   
2. Govt’s Domestic Debt Restructuring proposal passed in Parliament with a majority of 60 votes: 122 MPs vote in favour and 62 against: SJB MPs Rajitha Senaratne, Mayantha Dissanayake, Rohini Kaviratne & Mano Ganesan among absentees from the Opposition: from the SLPP ranks, former President Mahinda Rajapaksa, Namal Rajapaksa & Chamal Rajapaksa, absent: SLFP stays neutral.
   
3. State Finance Minister Ranjith Siyambalapitiya says the Domestic Debt Restructuring will not pose any risks to provident funds or bank deposits: analysts however point out that the Monetary Board has already cut 20% off the EPF Member balances in 2022 by crediting only 9% when the actual earnings were 29%: accordingly, based on the EPF Member balances of Rs.3,068 bn as at end-Dec’21, analysts state that the EPF Members have been deprived of a staggering Rs.614 bn in earnings for the year 2022.
   
4. Govt condemns the burning of the Holy Quran outside a mosque in Sweden amidst Eid celebrations.
   
5. Parliament appoints a 12-Member Parliamentary Select Committee under Minister of Public Security Tiran Alles to submit recommendations on the eradication of the drug menace within the country.
   
6. According to CEB Chairman Nalinda Illangakoon the CEB which is being restructured to be more cost-effective, may incur around Rs.37 bn in losses within the coming 6 months with the introduction of the new tariff revision last week: say the effect of the tariff reduction proposed by the CEB for the next 6 months was around Rs.10 bn, but the new tariff reduction approved by the PUCSL will cost Rs.47 bn.
   
7. Industrial Development Board Chairman Dr. Saranga Alahapperuma says an exemption of import tax on raw and intermediary material is being seriously considered by the Ministry of Industries, and asserts a positive response in this regard can be expected before the end of this year.
   
8. Geological Survey and Mines Bureau reports a magnitude 5.8 earthquake deep below the seas off South-East of Sri Lanka, approximately 1,260 kms away from Colombo: Bureau confirms there has been no adverse effects from the tremor.
   
9. A Russian cargo plane takes Tusker elephant “Muthu Raja” which was donated by Thailand to Sri Lanka, back to Thailand: “Muthu Raja” is to receive treatment from Thai veterinary surgeons in Thailand.
   
10. Fast bowler Lahiru Kumara, who suffered a side strain during the match against Netherlands, to miss the remainder of the ICC tournament: to be replaced by Sahan Arachchige: Wanindu Hasaranga receives official reprimand and penalty of 50% match fee for breaching the ICC Code of Conduct during the match against Netherlands.

By: Isuru Parakrama

Colombo (LNW): The government’s proposed plan on domestic debt optimisation (DDO) has been passed in Parliament with a majority vote today (01).

Accordingly, the government’s DDO plan was passed in Parliament with a majority of 60 votes, with 112 votes in favour and 62 against.

The DDO plan proposed the granting of all necessary power to the Minister of Finance and Economic Stabilisation for the optimisation of domestic debt in Sri Lanka and was tabled in Parliament by Leader of the House, Minister Susil Premjayanth.

The DDO plan was passed with certain amendments.

Colombo (LNW): The parliamentary debate on the government’s proposed domestic debt optimisation plan has been extended by two more hours, Daily Mirror reported quoting Chief Opposition Whip and SJB MP Lakshman Kiriella.

The vote on the government’s DDR plan will be taken up at 9.30 pm tonight (01), he added.

By: Isuru Parakrama

Colombo (LNW): An earthquake of magnitude 5.8 of the Richter Scale has occurred in seas off Sri Lanka, revealed the Geological Survey and Mines Bureau.

The reported earthquake at a depth of about 10 kilometres has occurred in the sea 1,260 kilometres south-east of the island, at around 12.59 pm today (01), according to the Bureau.

Tremors in the aftershock has spread across several areas of Sri Lanka, reports added.

Minister of Foreign Affairs of Sri Lanka, Ali Sabry, visited China at the invitation of State Councilor and Foreign Minister Qin Gang, from June 24 to 30 to engage in bilateral discussions and to attend the World Economic Forum held in Tianjin.

The Foreign Minister had bilateral discussions with his counterpart State Councillor and Chinese Foreign Minister Qin Gang. The two Ministers discussed political, economic, trade, investment, tourism and financial issues. Minister Qin Gang stated that China stands ready to expand its cooperation with Sri Lanka. Minister Sabry reaffirmed China’s role as an important development partner and appreciated the assistance provide by China.

Minister Ali Sabry also called on China’s Minister of Finance Liu Kun and briefed on the progress being made in economic recovery. Both Ministers agreed to further expand the economic cooperation between the two countries which would be particularly beneficial to Sri Lanka in its economic recovery.

The Foreign Minister also held discussions with EXIM Bank Chairman Wu Fulin and President Bai Yinzhan, of the China Harbour Engineering Cooperation. Minister Sabry also met Ma Yongsheng, Group Chairman of Sinopec Company. The Chairman briefed the Minister on the forthcoming investment of Sinopec in Sri Lanka. Other interactions of the Foreign Minister included meeting with President of Asia Infrastructure Investment Bank Jin Liqun and Secretary General and of the Shanghai Cooperation Organisation Zhang Ming. The Minister also met the President of the World Economic Forum Børge Brende on the side-lines of the Forum.

During the World Economic Forum, Minister Ali Sabry participated in the ‘Annual Meeting of the New Champions’ and also contributed to the Roundtable on ‘Preventing a Lost Decade’ and the Stakeholder Dialogue on ‘How to Power Tomorrow’s Economy’. He also presented Sri Lanka’s economic recovery and our experience from the economic crisis at the forum.

The Foreign Minister also met the Sri Lankan community living in Beijing as well as the Sri Lankan students in Tianjin University during the visit.

Addressing a press briefing held at the Presidential Media Centre yesterday (30), Ports and Civil Aviation Minister Nimal Siripala de Silva expressed concerns about the potential loss of jobs for approximately 6,000 employees at SriLankan Airlines if immediate restructuring measures are not implemented.

The minister emphasised that the government cannot sustain the financial losses incurred by SriLankan Airlines and it would be unfair to continue using taxpayer funds in this manner. To address the situation, the government has already initiated efforts to engage the support of international financial experts, with the aim of conducting the restructuring process in a transparent manner, as part of their commitment to building a stable country.

Addressing the media briefing, Minister Nimal Siripala de Silva said;

“SriLankan Airlines, established as our national carrier many years ago, holds a unique position. While it managed to generate a profit of Rs. 30 million during the period it was under the control of Emirates Airlines, it has struggled to achieve profitability otherwise.

The airline is primarily funded by the taxes of ordinary citizens, including those who have never experienced air travel. We take pride in having our own national airline, but we must question whether the cost associated with maintaining it is justified.

Presently, SriLankan Airlines carries a debt of US$ 1.2 billion. Various organisations, including local state banks, have had to cover outstanding payments for international bonds and leased planes. Additionally, we have accumulated unpaid fuel bills. Operating an airline under such immense debt is unsustainable.

Due to economic challenges, including foreign exchange difficulties, the government is unable to provide financial support for losses as it has done in the past. This approach is no longer equitable, which led to the decision to restructure SriLankan Airlines. The restructuring plan entails the government retaining a 51% share, with the remaining 49% to be offered to another investor.

The proposal for the restructuring process of SriLankan Airlines was submitted to the Cabinet six months ago. Although some profits are generated through ground operations and SriLankan Catering Company, they are insufficient to cover the airline’s losses.

Considering the need to sell shares separately and the memorandum presented to the Cabinet, a series of proposals have been forwarded to international financial experts through the Ministry of Finance. We are committed to transparently maximise the benefits of this process.

The completion of the SriLankan Airlines restructuring is anticipated within the next six months. It will then be transferred to the identified investor under conditions that safeguard the rights of employees. Through this initiative, we aspire to enhance the performance of SriLankan Airlines. Failure to undertake this task promptly puts the jobs of approximately 6000 employees at risk.

The airline industry worldwide experienced a severe setback due to the COVID-19 epidemic. Tourists ceased to visit countries, and many nations had to ground their planes. In fact, even Qatar Airways had to lay off 72 pilots. In contrast, our government ensured that our pilots received half their salaries, even when they were not actively flying. This gesture was driven by a humanitarian approach.

Following the COVID-19 epidemic, our country faced immense challenges, including a decline in tourist arrivals. However, under the leadership of President Ranil Wickremesinghe, the government successfully navigated these difficulties and revitalised tourism through the efforts of SriLankan Airlines. As a result, tourists gradually began returning to our country.”

In response to a journalist’s query regarding the domestic debt restructuring, the minister said:

“The Opposition has a history of disseminating misleading information. Before having access to accurate details, they have already made predictions today. Their claims about the imminent collapse of the banking system and the potential loss of benefits from the Employees Provident Fund are baseless. Such false advertisements have been widely circulated. However, financial experts assert that there will be no adverse impact on the public. The Domestic Debt Optimisation is currently in parliamentary and we will obtain approval with a simple majority.”