Colombo (LNW): The Horana Magistrate Court has warranted the arrest of R.G.A. Wimalaweera, former Commissioner General of Labour and current Secretary to the Ministry of Labour, in connection with the death of five persons at a chemical waste station of a rubber factory in Horana area.

This was when the case was taken up yesterday (24).

These deaths had occurred as the five persons had fallen into a chemical waste tank in the factory, and Wimalaweera is accused of influencing a former factory inspection engineer in the Kalutara district to produce false evidence pertaining to the incident as the then Commissioner General of Labour.

Accordingly, the Magistrate Court has warranted Wimaraweera’s arrest and ordered that the suspect be produced in Court and that the operation be executed within seven days through the Inspector General of Police (IGP).

EDB: The Export Development Board (EDB) Advisory Committee on Gems, Diamonds & Jewellery sector has emphasised the importance of making Sri Lankan Gem & Jewellery traders more competitive and simplifying policy measures during the 7^thAdvisory Committee Meeting held recently.

The renowned China Fort Gem Market located in Beruwala and Rathnapura are considered as bustling marketplaces for the gem trade in Sri Lanka. They attracts over 500 merchants from various parts of the world from the Middle East, China, and Europe. This gem markets provide an opportunity for small-scale miners to market their treasures. The miners and rough gemstone dealers from Rathnapura, Balangaoda, Nivithigala, Elehara, and Galle visit these markets to trade their gems.

Foreigners would visit Beruwala and Rathnapura to engage in gem trading activities, bringing their expertise, networks, and goods. In addition, it serves as a platform where gemstones are evaluated, traded and sold, contributing to the overall growth and development of Sri Lanka’s gem trade. These markets are highly active with millions of dollars worth of gems being traded every day.

The advisory Committee Members pointed out that currently, the presence and influence of illegal foreign traders and buyers at the China Fort Gem Market and Rathnapura have become a major challenge to local Gem traders. While these markets have brought new opportunities to the industry, it has also presented specific challenges that require careful navigation.

Members emphasised that the primary challenge faced by the Beruwala Gem Market and Rathnapura is the intensified competition from illegal foreign traders. These foreign people arrive in Sri Lanka using a visit visa and engage in gem business. Also, they don’t occupy any licence from the National Gem & Jewellery Authority which is a mandatory to engage in Gem trade. This unlicensed gem trading could seriously damage Sri Lanka’s reputation as it can lead to lot of mal practices. Members further emphasised that, these foreign traders have a wider range of buyer and seller access via online platform as they do more with online channels. As foreign traders and buyers become more active in the Beruwala Gem Market and Rathnapura, it puts more pressure on the local traders and facilitates smuggled businesses.

The money brought in for the gem purchases is being brought without following any government rules and regulations and the purchased stones are also taken out unofficially without being regulated whilst the traditional Sri Lankan dealers are subjected to all taxes and regulations. As a result, the miners, dealers and brokers tend to sell stones to these foreigners for cash without any documentation. This has badly affected the exporters who are using the official channels to obtain merchandise for exports. Also this will reduce the Government tax revenue and employment opportunities. 

Therefore, the Members emphasised that the Sri Lanka Government should give focus on making local traders more competitive to survive in this trade. Additionally, the committee stated that today, the gem trading hub is Thailand and all the European and American buyers who were patronising the Sri Lankan market have now been attracted by the Thailand market. At a period where we are losing our trade, it is really unfortunate to see that the Government is imposing many regulations which made the local traders even less competitive. Therefore, the Sri Lankan gem and jewellery traders are in jeopardy.

The Advisory Committee Members stated that the Sri Lanka Government support is not forthcoming and some of the policy measures discourage the local traders and make them less competitive. The committee identified Gems & Jewellery sector as a unique export sector among other export sectors as 99% of the value addition is locally produced while most of the others  involve more with foreign components.

The oversight supervision and the industry regulations must be revisited by the National Gem and Jewellery Authority to reduce these illegal businesses are carried out by foreign traders.

In addition, the Government should support by applying some policy measures to survive the local traders and the industry in the long term.

The Embassy of Sri Lanka in Brussels, in collaboration with the Sri Lanka Export Development Board (EDB), organised an online briefing session on the EU Strategy for Sustainable and Circular Textiles on  20July 2023.

The event aimed to enlighten stakeholders within Sri Lanka’s apparel industry about the European Union’s progressive approach towards sustainable and circular textiles. The briefing session was conducted by a senior expert, Mikael Garellick, at the Textile Unit of the Directorate General of the International Market of the European Commission.

The virtual event brought together key players from Sri Lanka’s apparel sector, including the Sri Lanka Joint Apparel Association Forum (SLJAAF), government representatives, and industry experts, to foster meaningful discussions about the future of textiles in the context of environmental sustainability.

The EU Strategy on Sustainable and Circular Textiles, introduced by the European Commission, is a crucial initiative to promote sustainability in the fashion and textile industries. It encourages eco-friendly practices and aims to reduce the environmental footprint of textiles throughout their lifecycle. Given that the EU is a significant trading partner for Sri Lanka’s textile exports, understanding and aligning with this strategy holds great significance for the country’s apparel sector.

During the briefing session, Mikael Garellick from the European Commission provided in-depth insights into the EU’s approach to sustainable and circular textiles. He highlighted the policies, standards, and potential collaborations that can aid Sri Lanka’s apparel industry in its pursuit of eco-friendly and sustainable practices. Participants had the opportunity to engage in a Q&A session, discussing specific challenges and opportunities relevant to the industry’s transformation to sustainable practices.

The Ambassador of Sri Lanka to Belgium and the European Union, Grace Asirwatham, emphasised the paramount importance of Sri Lanka’s apparel industry’s transformation to sustainable practices, aligning it with the EU Strategy on Sustainable and Circular Textiles to harness significant market benefits in the EU in the future.

Acting Director General of the EDB, Malani Baddegama, explained that Sri Lanka’s major export to the EU is apparel items and the benefits that it enjoys under the GSP Plus scheme. She further acknowledged the significance of such briefings and thanked the European Commission official for the insightful briefing.

Dr. Ramesh Pathirana, Minister of Plantation Industries and Minister of Industries, stated that action will be taken to establish an Agriculture and Plantation Research University by merging all institutions connected to the plantation industry and agriculture sector, as per President Ranil Wickremesinghe’s concept.

The fundamental draft related to this has already been prepared, the Minister noted, and it is intended to complete the basic work this year.

He expressed these views today (24) during a press conference themed ‘Collective Path to a Stable Country’ held at the Presidential Media Centre (PMC).
Dr. Ramesh Pathirana further commented;

A year ago, plantations and agricultural centres faced a severe crisis due to the shortage of fertilisers. Due to this, the tea industry and other plantations also suffered some collapse. Soon after taking office, President Ranil Wickremesinghe launched a program to provide fertilisers to the farmers.

Therefore, the farmers are getting the fertilisers they need in a systematic way. All the fertilisers required for tea, coconut, rubber and other crops are available in the market at competitive prices. Fertiliser prices, which have increased in the world market due to the war situation, are currently decreasing. As a country, the agricultural and plantation sectors are now showing some effectiveness due to timely availability of fertiliser to the farmers.

251 million kilos of finished tea was produced in 2022. As a result, it is expected that 280 million kilograms of finished tea would be ready by the end of this year. Last year, the price of tea increased drastically due to the decrease in production. Currently, the rupee is strengthening, which has resulted in a fall in tea prices. Tea exports have been adversely impacted by global conditions, the Russian-Ukrainian war situation, and civil wars in countries like Iran, Libya, and Syria, which are our top buyers.

An agreement was recently signed to supply tea for nearly 500 million dollars worth of crude oil purchases from Iran. Accordingly, arrangements are made to provide tea according to the value of the relevant amount. Arrangements have also been made to re-export Sri Lankan tea to the Iranian market under the concept of ‘Tea for fuel’. Due to this, we will be able to re-export more tea to the Iranian market, which was lost to some extent in the past.

Also, it has been possible to get an income of nearly one billion dollars last year through the export of rubber. Its biggest value was 1.1 billion dollars in 2021. During Covid, rubber-related products received high demand in the world market. Sri Lanka is considered to be the hub among the main tyre producing countries. It is believed that the export of rubber-related products will be able to reach between 900 million dollars and 1 billion dollars this year as well.
With the world economic deviation, the export of every product has experienced a decrease. Economists predict that normalcy will return after the third quarter. Due to this, it will be possible to reach the export targets of plantation crops again in the future.

In recent times, apart from tea and rubber, coconut-related products have seen the highest growth. Compared to 2020, the market has expanded by approximately 15%-20% in 2021 and 2022. Accordingly, in 2022, it was able to earn an export income of 836 million dollars. It can reach a value close to that this year as well. Within the next five years, there is a high probability of increasing the export income of coconut-related products to 1.5-2.00 billion dollars.
In order to improve the country’s coconut industry, a law will be brought in the near future that states that a special permission must be obtained to divide coconut lands of more than one acre. For that, we hope to follow up again on the instructions of President Ranil Wickremesinghe. Additionally, the law requiring the authorisation of the Divisional Secretariat and the Grama Niladhari shall be enforced if more than two coconut trees are to be cut down.

In addition, it is believed that nearly 400 million dollars will be earned this year by exporting cinnamon and other spices.

President Ranil Wickremesinghe presented a new proposal to establish an Agriculture and Plantation Research University in Sri Lanka by integrating all research institutes related to the plantation industry and agriculture.

There are seven institutions related to the plantation industry in this country. Agricultural institutions are also to be integrated into this. The basic draft related to this has been prepared by now. This is a very complex project. But the basic work is expected to be completed this year.

However, through the available resources of the country, children are able to get better educational opportunities. Also, efforts are being made to focus on upgrading to university standards.

It is anticipated that the plantation industry’s backwardness will be reduced, allowing it to go forward more vigorously in the future. The government is prepared to offer the assistance required to expand the plantation industry’s value chains. It will step in as a Ministry in situations involving technological know-how and financial resources.

Colombo (LNW): Reyaz Mihular, new Chairman of Sri Lanka Telecom PLC assured that the recent changes in the company’s Board of Directors had nothing to with the divestment of shares by the Government of Sri Lanka (GOSL).

In a statement, the SLT Chief emphasised that they as a Director Board have a sole responsibility to ensure SLT-Mobitel is run professionally, and the shareholders, therefore, cannot be expected to be told any conditions for selling shares. In this case, the decision can only be made by the GOSL itself, Mihular added.

The SLT Chairman further noted that the changes made in the company are solely “to ensure that SLT-Mobitel is managed properly following good governance practices.”

Full Statement:

By: Staff Writer

Colombo (LNW): The Ministry of finance has relaxed certain limitations/suspensions imposed on outward remittances of foreign exchange to maintain financial system stability.

New order has been issued by President Ranil Wickremasighe in his capacity as the country’s finance minister under Section 22 of the Foreign Exchange Act, No. 12 of 2017 (FEA) since 02.04.2020.

The restriction order earlier issued was aimed to temporarily suspend/limit certain outward remittances with a view to assist and maintain the financial system stability by minimizing the pressure on the exchange rate and preserving the foreign currency reserve position of the country.

This decision was taken by the. Minister of Finance, with the recommendation of the Monetary Board of the Central Bank and the approval of the Cabinet by considering the current and expected developments in the domestic foreign exchange market and with a view to further facilitate international transactions.

It has relaxed certain limitations on outward remittances for capital transactions and removed the restrictions on current transfers of emigrants, while continuing the other suspensions/limitations which were imposed under the previous Order. The new Order is effective for six (06) months from 28.06.2023.

First time claim of migration allowance of up to a maximum of US$ 30,000 has been changed up to a maximum of $50,000* under the new order.

Subsequent claims after the initial claim of migration allowance.u p to a maximum of $ 10,000* has been increased to a maximum of $20,000*.

Repatriation of current income or accumulated current income of the emigrants to a maximum of $30,000*has been removed.

Overseas investments through Outward Investment Accounts (OIAs) by eligible resident are now changed from a maximum of 415,000* to a maximum of $30,000*.

Invest in ordinary shares of a company outside Sri Lanka, for the purpose of expanding their core business in overseas. and Companies listed in the Colombo Stock have been exempted from the suspension with a limit of $200,000 and $ 100,00 respectively.

By: Staff Writer

Colombo (LNW): Chinese Ambassador to Sri Lanka, Qi Shenhong praised Sri Lanka’s economic recovery process in the last twelve months.

The meeting was called on by Prime Minister Dinesh Gunawardena, who expressed gratitude to China for its continuous support to Sri Lanka.

Chinese Ambassador congratulated Prime Minister Dinesh Gunawardena and commended the country for impressive progress in overcoming the economic crisis during the first year of the new Government.

Prime Minister Gunawardena also expressed his gratitude to China for its most recent kind act of generosity for Sri Lanka’s educational system.

The Chinese Government offered school bags, stationery, clothing for school uniforms and educational equipment to schools countrywide.

The assistance will lead to a positive impact on the educational landscape and facilitate a conducive learning environment for Sri Lankan students.

With Sri Lanka striving to boost its economic recovery, Prime Minister Gunawardena emphasized the country’s openness to welcome direct private investments, particularly for sectors such as agriculture, renewable energy, irrigation, and water supply.

These investments are envisioned to provide long-term solutions to the economic challenges faced by the country.

Secretary to the Prime Minister Anura Dissanayake was also present during the meeting, underscoring the importance of the discussions and highlighting the collaborative efforts between Sri Lanka and China.

China’s support and cooperation have been instrumental in various development initiatives in Sri Lanka, and their continuous engagement with the country underscores the strong bilateral ties shared between the two countries.

This support comes at a time when the country is navigating a severe economic crisis that is having devastating impacts on people’s lives and livelihoods and which demands deep reforms to stabilize the economy and protect the poor and vulnerable.

Sri Lanka’s poverty rate is estimated to have doubled from 13.1 to 25 percent between 2021 and 2022—an addition of 2.5 million poor people—and is projected to increase by another 2.4 percentage points in 2023.

The government lays out a two-phased approach that starts with a focus on urgent macro-fiscal and structural reforms and support to protect the human capital and most vulnerable population.

After the first 18-24 months, and subject to successful implementation of the reform program and international debt relief and financial support, the focus will gradually shift to investments in longer-term development needs that will help promote private sector job creation—particularly for women and youth—and boost resilience to climate and external shocks.

The Sri Lanka resilience, stability and economic turnaround (RESET) development policy operation ($500 million) will support reforms that help improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable.

It will provide budget support in two equal tranches against agreed prior actions.

The Social protection project ($200 million) seeks to support Sri Lanka in providing better-targeted income and livelihood opportunities to the poor and vulnerable and improving the responsiveness of the social protection system.