In a significant development, the National Constitutional Council has given its approval to the appointment of Professor Manjula Fernando as the Chairman of the Public Utilities Commission of Sri Lanka (PUCSL). Taking over from former Chairman Janaka Ratanayake, Professor Fernando assumed his new role on June 23.

The decision to replace Janaka Ratanayake was made following a parliamentary motion that was debated and passed in May, in accordance with Section 7 of the Public Utilities Commission of Sri Lanka Act. The motion was prompted by several disagreements between Ratanayake and the Minister of Power and Energy, Kanchana Wijesekera. These disagreements spanned various issues, including revisions to electricity tariffs and the duration of power cuts.

Several spells of showers will occur in Western and Sabaragamuwa provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts during the evening or night.

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 minimize damages caused by temporary localized strong winds and lightning during thundershower.

1. Secretary of the U.S. Treasury Janet Yellen says Sri Lanka’s creditors should deliver on debt restructuring in a timely manner. Her remarks came during a meeting with Sri Lankan President Ranil Wickremesinghe on Thursday (June 22), which took place on the sidelines of the Summit in Paris for a New Global Financial Pact.
2. Agriculture Minister Mahinda Amaraweera says the government’s plans to purchase paddy at a favorable rate of Rs. 90 to 95 per kilo during the upcoming Yala season: confirmed that the Treasury has already assured the availability of funds to facilitate the paddy purchasing program.
3. Date fixed for X-Press Pearl petition hearing. A petition filed seeking compensation for the affected parties of the X-Press Pearl disaster, which took place in May 2021, is due to be heard on 26 July. Order was issued by the Commercial High Court in Colombo on Friday (23 June), when the petition filed by the Samagi Jana Balawegaya (SJB) and other parties was taken up.
4. The latest data on tea exports reveals a positive trend for the month of May 2023. Total tea exports reached 20.55 million kilograms (M/Kgs), indicating a gain of 0.83 M/Kgs compared to May 2022’s figure of 19.72 M/Kgs.
5. President calls for urgent debt restructuring, comprehensive approach to support middle-income nations. He was attending a high-level panel discussion at the Global Leaders’ Summit for a New Global Financing Pact, in Paris. Added that Sri Lanka faced limited access to financing and took ownership of its debt and economic restructuring program.

6. Prof. Manjula Fernando has been appointed the new chairman of the Public Utilities Commission of Sri Lanka (PUCSL).
7. United Nations Secretary General Antonio Guterres has assured the UN’s strong commitment to assisting Sri Lanka in its economic recovery and debt sustainability endeavours.
8. President Ranil Wickramasinghe meets French President Emmanuel Macron. The meeting took place during the Head of State session on the second day of the Conference for a New Global Financial Agreement underway in Paris, where the two heads of state engaged in a cordial conversation.
9. The Central Bank of Sri Lanka says that Treasury Bill auctions are conducted according to a transparent and well-established procedure. It said that any postponement of raising funds for the government, in anticipation of any change in policy interest rates, is not feasible given the large cashflow requirement of the government and its commitment to phasing out monetary financing by the Central Bank.
10. Wanindu Hasaranga made it two five-wicket hauls in as many matches as Sri Lanka claimed their second win of the ICC Cricket World Cup Qualifier 2023, with Scotland matching them. The leg-spinner took six wickets in the opening win over the United Arab Emirates, and was at it again with five for 13 in a ten-wicket success against Oman.

Highlighting the pressing issue of wildlife damage to agriculture and crops, Agriculture Minister Mahinda Amaraweera emphasized the need for a permanent and expeditious solution. The extent of damage caused by wild animals to the agricultural sector is substantial, with last year alone witnessing the destruction of three million coconuts by toque macaques and monkeys. Surprisingly, environmentalists, who are vocal on various conservation matters, have not engaged in discussions or proposed viable solutions in collaboration with the Agriculture Ministry to address this growing concern.

In addition to toque macaques and monkeys, several other wild animals, including wild boars, peacocks, and giant squirrels, contribute to the damage inflicted on crops.

Expressing his disappointment, Minister Amaraweera highlighted the failure of environmentalists to submit even a single proposal for controlling this damage. In many countries, wildlife populations are managed by culling them when their numbers exceed sustainable levels. However, such a method is not feasible in Sri Lanka. Consequently, the minister stressed the importance of open dialogue and collaborative efforts to swiftly devise an effective solution.

Finding a balance between wildlife conservation and safeguarding agricultural interests is paramount. Minister Amaraweera urged all stakeholders to come together and explore innovative approaches that would mitigate crop damage caused by wild animals. By pooling their expertise and perspectives, a comprehensive strategy can be formulated to address the issue at hand.

The latest data on tea exports reveals a positive trend for the month of May 2023. Total tea exports reached 20.55 million kilograms (M/Kgs), indicating a gain of 0.83 M/Kgs compared to May 2022’s figure of 19.72 M/Kgs. While tea in bulk and tea bags experienced a slight growth, tea packets recorded a marginal decline in comparison to the corresponding month of the previous year.

The Free on Board (FOB) value for May 2023 was recorded at Rs. 1,755.58, representing an increase of Rs. 50.44 year-on-year (YoY) compared to May 2022’s Rs. 1,705.14. Forbes & Walker Research reported positive variances in all main categories when measured in USD terms.

Looking at the cumulative exports from January to May 2023, the total stood at 90.80 M/Kgs, reflecting a decrease of 10.92 M/Kgs compared to the corresponding period in 2022 (101.72 M/Kgs). Tea in bulk and packeted tea displayed negative variances, while the remaining product categories exhibited a marginal increase. The FOB value for this period amounted to Rs. 1,941.81, signifying a significant increase of Rs. 739.75 compared to January-May 2022’s Rs. 1,202.06.

In USD terms, all categories demonstrated gains when compared to the corresponding period in 2022.

Türkiye continued to hold its position as the leading importer of Ceylon Tea, experiencing an 84% YoY increase in January-May 2023. Iraq, on the other hand, slipped to the second position with 10.43 M/Kgs, reflecting a 46% decrease in imports. Russia secured the third position with a 20% increase in exports YoY.

In a significant announcement, Agriculture Minister Mahinda Amaraweera revealed the government’s plans to purchase paddy at a favorable rate of Rs. 90 to 95 per kilo during the upcoming Yala season. The minister emphasized that the procurement process would commence with the beginning of the harvest. Additionally, he confirmed that the Treasury has already assured the availability of funds to facilitate the paddy purchasing program.

Under the visionary leadership of President Ranil Wickremesinghe, the Agriculture Ministry is actively incorporating technology into the agricultural sector. This strategic initiative aims to enhance productivity and yield per hectare, ultimately promoting a sustainable and progressive agricultural industry.

Minister Amaraweera expressed satisfaction with the increased harvest achieved through the provision of agricultural concessions this year. The ministry is continually introducing cutting-edge technology required to maximize yields, ensuring an ample supply of agricultural products for consumption.

The government has also prioritized the welfare of farmers by providing them with fertilizers and necessary concessions, encouraging their active participation in national production. As part of the President’s agriculture modernization program, the ministry plans to further increase yields per hectare in the future, utilizing advanced technology in vegetable and fruit crop cultivation.

Minister Amaraweera outlined the government’s comprehensive approach, stating, “We are committed to fulfilling the food requirements of all citizens. Following that, we will implement an efficient program to generate foreign exchange through agricultural products. Moreover, we will extend concessions to the poultry industry.”

In a recent statement, Examination Commissioner General Amith Jayasundara revealed the systematic approach to evaluating the answer scripts of the GCE (General Certificate of Education) Advanced Level Exam followed by the GCE Ordinary Level Exam. The Commissioner General confirmed that once the evaluation of the Advanced Level Exam is completed, the assessment of the Ordinary Level Exam scripts will commence.

According to Jayasundara, the evaluation of the GCE Ordinary Level answer scripts is anticipated to commence towards the end of July. He further emphasized the Examinations Department’s commitment to expeditiously releasing the exam results to the students. The department will take proactive measures to ensure a swift outcome for the benefit of the children awaiting their results.

At present, the evaluation process for the GCE Advanced Level exam is underway at 37 designated schools. The Examination Commissioner General’s announcement sheds light on the organizational efforts being made to ensure a smooth and efficient assessment process for both exams.

One of the most well-known investors of all time is seeing his recent investment activity called out by a more recent well-known investor.

Are the comments praise or an attempt to take on his legacy?

What Happened: Legendary investor and Berkshire Hathaway Inc (NYSE: 

BRK-A)(NYSE: 

BRK-B) CEO Warren Buffett has been increasing his bets on Japanese stocks and enjoying strong returns in recent months.

The investment strategy saw his ownership stakes in the Japanese companies increase and came at a time when major Japanese stock market indexes outperformed the key American stock index metrics.

Investor Chamath Palihapitiya, who was once labeled as the “next Buffett” by the media, took to Twitter to share his thoughts on Buffett’s strategy.

“I was really curious about Buffett’s ownership of the Japanese trading companies and wanted to understand why he did it? As it turns out, the trade is really brilliant,” Palihapitiya tweeted. “He found a group of companies that had very low volatility, grew earnings predictably, had a good dividend and, in most cases, were buying back their stock.”

Palihapitiya said the next step by Buffett is one that is “awesome.”

“As far as I can tell, he issues Japanese debt at very low rates, uses the proceeds to buy the stocks and then uses the dividends he then gets from owning these stocks (which are greater than the interest rates he’s paying to borrow in the first place) to pay the coupon

The investor said this could be a “near-risk less bet” by borrowing trillions of Japanese Yen for free and using the proceeds to buy stakes in companies that are “growing earnings in the mid-teens.”

“And over a 10-20 year holding period, he becomes insensitive to currency vol and so really can’t lose money. He locks in the earnings gains over this period along with whatever spread he keeps between his dividends and his coupons.”

The risk for Buffett is the concern that the Japanese economy could totally blow up, which Palihapitiya said is “pretty unlikely” as the companies in question are also exposed to the rest of the world.

“It’s inspiring to see folks act this intelligently at scale. That’s why he’s the (GOAT).”

One user questioned the potential criticism of Buffett as he once compared himself to the famed investor. Palihapitiya said he never compared himself to Buffett and it was the media.

“Don’t trust what you read,” Palihapitiya said.

Another user said this was misleading as the shareholder letters issued by Social Capital in 2018, 2019 and 2020 compared early returns of his Social Capital to Berkshire Hathaway.

“You chose Buffett as your benchmark. Which is comparing yourself to him,” the user said.

Palihapitiya said this was different than a comparison and was only a benchmark.

One user was quick to point out that Buffett is producing a crazy return on equity by borrowing at 0% to 1% and investing in 7% to 10%. Palihapitiya said it could be better than this with borrowing at 1% to 2% and investing at 12% to 14%.

Palihapitiya acknowledged a user that called Buffett’s strategy as yield farming by calling it “OG yield farming.”

A user asked what it was that the Japanese companies Buffett has invested in do and how he can use this investment strategy.

“They are middlemen that trade in various commodities for many economies in the world. So as long as the world needs ‘stuff’ these folks will provide it for a small fee…hence it’s bet levered world GDP which tends to grow over long periods of time,” Palihapitiya said.

Palihapitiya added the Berkshire Hathaway can issue debt anywhere on the planet.

Short seller Muddy Waters replied to Palihapitiya’s post asking if it “depends on what the definition of ‘is’ is.”

“Don’t worry about this mid level bullsh**. I’m just trolling these guys,” Palihapitiya told Muddy Waters.

The comments by Palihapitiya come as Buffett’s bets on five Japanese companies have grown from $6 billion to $17 billion.

Berkshire Hathaway took 5% stakes in several Japanese companies back in August 2020, positions which have increased along the way. The Japanese companies are:

Itochu Corp ITOCF

Marubeni Corp MARUF

Mitsubishi Corp 

MARUF

Mitsui & Co Ltd MITSY

Sumitomo Corp SSUMF

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