Colombo (LNW): The Lanka Indian Oil Company (LIOC) said it will revise its fuel prices consequent to the price revision announced by the Ceylon Petroleum Corporation (CEYPETCO).
Accordingly, the LIOC price revision will be in effect from midnight today (01).
The revised prices:
Petrol 92 surged by Rs. 10 per litre to Rs. 328
Petrol 95 slashed by Rs. 20 per litre to Rs. 365
Super Diesel surged by Rs. 06 per litre to Rs. 346
Auto Diesel slashed by Rs. 02 per litre to Rs. 308
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.”
PMD: President Ranil Wickremesinghe expressed hope that Sri Lanka will be able to shed its bankruptcy status by September and urged everyone to work collectively to back the Government’s efforts.
The President made this statement while addressing the AGM of the Sri Lanka Institute of Directors (SLID) held at the Cinnamon Grand on the 29th.
“I hope by September that Sri Lanka will be able to shed its bankruptcy status. Whether you are Sinhalese, Tamil, Muslim or any other nationality, no one likes to be called bankrupt. If individually you don’t like it, then collectively why do you want to have this tag on you? So let’s get out of it.” said President Wickremesinghe.
The President also mentioned that a Climate Prosperity Plan was launched in November, which means that more resources are required, partially from the Government and partly from other investments, including private investments. As a result, the President stated that if Sri Lanka abandons the program, the country will immediately forfeit the $700 million that the World Bank is set to provide the country, and the second review will be a failure.
Sri Lanka in future will start playing a more active role in the area of debt and climate resilience and the President expressed confidence that Sri Lanka can make it with what it has got.
The President further said that Sri Lanka has a growth agenda which the Government has placed up for discussion with everyone involved. However, he said that completing the debt restructuring is critical. The President stated that he had already met with members of the Cabinet, Bankers, Chamber of Commerce representatives, and trade union representatives and held discussions. The President also expressed confidence that not only can Sri Lanka get out of the present crisis, but can look ahead for a far more competitive economy.
He noted that Sri Lanka will be making an application in the next month to join the RCEP, the Regional Comprehensive Economic Partnership that puts Sri Lanka into the whole Southeast East Asian market. As a start off in building a competitive economy, discussion will commence with the EU and India to strengthen trade agreements, the President added.
President Ranil Wickremesinghe further noted;
I hope by September that Sri Lanka will be able to shed its bankruptcy status. Whether you are Sinhalese, Tamil, Muslim or any other nationality, no one likes to be called bankrupt. If individually you don’t like it, then why do you want to have this tag on you collectively? So let’s get out of it.
Last November we presented our Climate Prosperity Plan. Now that means more resources are needed, partly by the Government, partly from other investments, private investments. Then we have to go along with this program. What will happen if you go off this? You’ll immediately lose the $700 million that the World Bank is due to give us. The second review will be a failure.
And I also had the opportunity of being in Paris when President Macron summoned the Global Leaders’ Summit for a New Global Financing Pact, which really looks at one of the issues; the debt and climate resilience. As countries get into debt, resources for climate resilience become less.
How do you have climate resilience and also be able to restructure debt? And where does the money come from? I mean this is such a large amount. I don’t know from where we are going to find the money, but nevertheless we have to find it. So this discussion is on. We are invited because we’ve been successful so far and we made a contribution. And I think Sri Lanka in future will start playing a more active role in this area of debt and climate resilience. I am confident Sri Lanka can make it with what we have got.
We have a growth agenda. We put it up for discussion with you all. But we have to first get through the debt restructuring. I’ve spoken with the Cabinet, we met the Bankers, the Chamber of Commerce representatives and in the afternoon we met the trade unions. We’ve all suffered. We have to have a growth agenda. We have to grow big. But in growing big there must be equity. A few people can’t get rich and others be low income or just make it to the middle income group.
So when we finish the debt restructuring, I will ask the chambers, the professionals, the trade unions, the farmers and others to discuss what our social contract is going to be. If all of us contribute, then all of us must have a share of it. So that’s another discussion that we are planning. This is what is there for the future.
I make one request from you. Go out and tell everyone what this debt restructuring is. Tell them that there is nothing to be frightened and not to attempt to change it. We are in a very delicate situation and we should go ahead.
I am confident that not only can Sri Lanka get out of the present crisis, but we can look ahead for a far more competitive economy.
And we will be making an application in the next month to join the RCEP, the Regional Comprehensive Economic Partnership that puts us into the whole South East and East Asian markets. We spoke to India about upgrading our free trade agreements with them. And later on we’ll talk to the EU about how we are going to deepen our trade agreements with them. So we have to become a competitive economy and this is the start of it.
Colombo (LNW): Police Special Task Force (STF) has been deployed on the order of Public Security Minister Tiran Alles to launch a special mission to crack down underworld operations in the Western and Southern Provinces.
Accordingly, 20 special teams from the Southern Province and 15 special teams from the Western Province have been deployed to eradicate these underworld operations.
The Rapid Deployment Motorcycle Unit of the STF has also been deployed in this regard.
In addition, intel about the hiding places of underworld leaders and their followers and the location of firearms is also being sought by the STF-Intelligence Units.
Colombo (LNW): Showers will occur at times in Western and Sabaragamuwa provinces and in Galle and Matara districts, and several spells of showers will occur in North-western province and in Kandy and Nuwara-Eliya districts, said the Department of Meteorology in its daily weather forecast today (01).
Showers or thundershowers may occur at several places in Uva and Northern provinces and in Ampara and Batticaloa districts during the evening or night, the statement added.
Fairly strong winds about (40-45) kmph can be expected at times in Western slopes of the central hills, North-central province and in Puttalam, Hambantota and Trincomalee districts.
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 or thundershowers will occur at times in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle. A few showers will occur in the other sea areas around the island.
Winds:
Winds will be south-westerly and speed will be (30-40) kmph. Wind speed may increase up to (50-55) kmph at times in the sea areas off the coast extending from Hambantota to Pottuvil and sea areas off the coast extending from Trincomalee to Puttalam via Kankasanthurai and Mannar.
State of Sea:
The sea areas off the coast extending from Hambantota to Pottuvil and sea areas off the coast extending from Trincomalee to Puttalam via Kankasanthurai and Mannar will be rough at times. The sea areas off the coast extending Puttalam to Hambantota via Colombo and Galle will be moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Colombo (LNW): The government’s proposed domestic debt restructuring (DDR) plan is due to be tabled in Parliament today (01).
Following the calling in of a special parliamentary session, a debate on the proposed DDR plan will be held today from 09.30 am to 07.30 pm, the Committee on Parliament Businesses decided.
The Committee made this decision during the meeting held under Speaker Abeywardena’s patronage yesterday (30), and no Parliament sitting will be called upon Sunday as previously agreed.
Accordingly, a voting on the DDR plan will also be carried out following the parliamentary debate within the date itself.
