Energy Minister Kanchana Wijesekera says that the update of the QR quota will be done every week on Tuesday at midnight, effective from today (08).
Earlier, the QR quota was updated every week on Sunday midnight and to reduce the cost of distribution, Tuesday has been selected, the minister said in a tweet.
However, the minister has also stated that no change has been made in the amount of fuel received per week due to the QR quota.
The All Ceylon Bakeries Association says that the price of bread will be reduced from midnight today (08).
Accordingly, the price of 450-gram bread will be reduced by 10 rupees.
The Deputy Ambassador of the Chinese Embassy in Colombo Mr. Hu Wei officially presented the financial assurance letter issued by the Exim Bank of China to Mr. Mahinda Siriwardena, the Secretary of the Ministry of Finance at the Presidential Secretariat last afternoon (07).
Mr. Hu Wei revealed that large – scale Chinese companies are looking forward to visiting Sri Lanka in the near future to explore new investment opportunities.
Secretary to the President Mr. Saman Ekanayake was also present on this occasion.
The Managing Director of the International Monetary Fund (IMF) has welcomed the progress made by the Sri Lankan authorities in taking decisive policy actions and obtaining financial assurances from all major creditors including China, India and the Paris Club.
In a statement, Kristalina Georgieva said she looks forward to presenting the IMF-supported program to the organization’s Executive Board on March 20.
“The Extended Fund Facility (EFF) will support the authorities’ program of ambitious reforms, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth,” the IMF chief said further.
Sri Lanka is now closing in on getting a sign-off on the long-awaited bailout package of USD 2.9 billion from the IMF upon receiving fresh financial assurances from China on restructuring the island’s debt.
Addressing the parliament this morning, President Ranil Wickremesinghe said a letter of agreement, signed by him as the finance minister and the Central Bank Governor. Nandalal Weerasinghe, was forwarded to the IMF soon after receiving assurances from the Export-Import (EXIM) Bank of China last night.
However, the Deputy Ambassador of China to Sri Lanka, Hu Wei officially handed over the financial assurance letter issued by the EXIM Bank of China to Sri Lanka’s Finance Ministry Secretary, Mahinda Siriwardana this afternoon at the Presidential Secretariat.
The deputy Chinese ambassador noted that large-scale Chinese companies are looking forward to visiting Sri Lanka in the near future to explore new investment opportunities.
Sri Lanka’s International Monetary Fund program will be taken up by the International Monetary Fund’s Executive Board on March 20, 2023, after the China gave assurances to re-structure debt.
“Sri Lanka has now received financing assurances from all major bilateral creditors,” Krishna Srinivasan, Director of IMF’;s Asia and Pacific Department said in a statement.
“This paves the way for consideration by the IMF’s Board on March 20 the approval of the Staff Level Agreement reached on September 1, 2022 for financing under an Extended Fund Facility.”
Approval by the Board would also catalyze financing from other creditors, including the World Bank and the Asian Development Bank.
“The arrangement will support the authorities’ program of ambitious reforms, that they have already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth.”
The IMF has confirmed that Sri Lanka has now secured financial assurances from all major bilateral creditors, paving way for the IMF’s executive board to consider green-lighting the EFF for the island nation engulfed with its worst economic crisis since independence from Britain in 1948.
The IMF said its executive board will meet on March 20 to review a preliminary staff-level agreement first signed in September, offering a lifeline to the South Asian country with a 48-month arrangement under the EFF of about US$ 2.9 billion.
The announcement came days after the IMF praised Sri Lanka’s surprise decision on March 3 to raise interest rates and move toward a market-determined exchange rate as evidence of a commitment to reducing inflation and enacting reforms.
New tourist hotels are coming up in the country’s tourist destinations at the time of the island nation’s tourism revival and reawakening due to far sighted measures taken by the present administration.
The tourism industry has managed to enter a recovery path with earnings exceeding US $ 330 million in tandem with the boost in arrivals in 2023.
The industry hit by multiple challenges post-Easter Sunday was the most vulnerable to COVID-pandemic and then to the adverse publicity of political and economic crises ‒ but it has proven again its resilience with a remarkable resurgence.
Tourism earnings in the first two months of 2023 were at $ 331.7 million reflecting a 3.3% increase from the corresponding period of last year, whilst February earnings stood at $
Tourism Minister Harin Fernando expressed optimism about early indications of a significant recovery, whilst asserting that it was imperative to maintain the current momentum to achieve the set target of 1.55 million arrivals and over $ 2.88 billion in income in 2023.
The tourism and hospitality landscape in Nuwara Eliya known as Little England will see the addition of a unique luxury property this year, with the Board of Investment (BOI) approved ‘Horton Heights’ setting to make its debut in the scenic city with an investment amounting to over US$ 3 million.
Owned by Al Araf Hotels & Resorts, Horton Heights is a 49-room super luxury hotel, designed for high-end tourists across the world, especially the Middle East.
Horton Heights is geared to welcome and entertain high-net-worth travelers from all over the world offering them a marvellous and heartwarming travel experience blended with Sri Lankan culture.
The property boasts several unique features, including live cooking station, an observation bridge on the rooftop and in-room shopping experience for guests. Besides, the glass dome 360-degree restaurant, a first-of-its-kind in Sri Lanka, offers a unique experience for high tea and private functions.
Horton Heights, which embraces a sustainable and green tourism concept, will provide employment opportunities to about 120 persons. The luxury property has also received a coveted four-star grade from the Sri Lanka Tourism Development Authority (SLTDA).
Speaking about the project, BOI Director General Renuka M Weerakone said “The project is a testament to Sri Lanka’s growing sustainable tourism and hospitality industry, which is set to receive a much-needed boost with the launch of Horton Heights, to attract high-end tourists from around the world,”
“The high-net-worth travelers can also experience the British colonial ambience with Sri Lankan flavour as they make the choice to witness a glimpse of the luxury property in Little England. Thus, Horton Heights promises to be a must-visit destination for tourists from different corners of the world,” she added.
Meanwhile, Al Araf Hotels & Resorts CEO Fazal Mohamed stated, “We have spared no effort in creating a property that meets the needs of today’s discerning traveler. From the dining options to the fitness center and the glass dome, we have ensured that our guests have access to world-class amenities.
In addition, the expertise of retired industry veterans has played a crucial role in creating a world-class property that meets the needs of today’s discerning traveler. As such, we are confident that Horton Heights will become a must-visit destination for luxury travelers.
The Central Bank has taken concessionary measures for the benefit of Micro, Small and Medium Enterprises (MSMEs) and Individuals affected by the present macroeconomic conditions.
It has been announced the restructuring/rescheduling of performing and non-performing credit facilities, on a case-by-case basis, consequent to an objective assessment by financial institutions on the future repayment capacity/viability of the business.
The Central Bank has directed financial institutions to suspend the recovery actions against credit facilities classified as non-performing on or after 01.01.2020, on a case-by-case basis, consequent to an objective assessment by FIs on the future repayment capacity/viability of businesses, upon the condition that the borrower submits an acceptable repayment plan.
Licenced Banks LBs have been advised to consider the requests made by borrowers to settle their credit facilities early, without paying any additional fee.
In the case of lease facilities, recovery of future interest also to be waived off. NBFIs consider early settlement of existing performing or rescheduled credit facilities, by applying a reduced rate for early settlement charges and recovery of future interest.
CBSL has requested the respective FIs to communicate the above requirements across their branch network to ensure effective and speedy implementation of the respective concessions to MSMEs and individual borrowers.
Accordingly, FIs are requested to provide appropriate concessions with a view to facilitating the eligible borrowers to carry on their income generating activities and gradually commence repayment of their facilities.
Eligible borrowers are requested to contact the respective financial institutions with relevant information and documents to discuss and agree on repayment plans.
Borrowers are expected to commence repayment as agreed with the FIs, as non-repayment of loan obligations for a longer period, would result in unwarranted strains on both FIs and on borrowers.
The Central Bank of Sri Lanka (CBSL) has implemented several schemes of debt moratoria and concessions to assist the borrowers affected by the COVID-19 outbreak and subsequent macroeconomic developments, through Financial Institutions (FIs) supervised by CBSL.
These schemes included extended repayment periods, concessionary rates of interest, working capital loans, debt moratoria and restructuring/rescheduling of credit facilities for affected borrowers.
The last phase of the moratoria granted to COVID-19 affected borrowers of the banking sector and Non-Banking Financial Institutions (NBFIs) Sector ended on 30.06.2022 &31.03.2022, respectively.
During the different phases of moratoria and concessions, FIs have approved over 3.3 million requests for concessions, amounting to a total of Rs. 5,994 billion.
In January 2023, subsequent to the conclusion of the last phase of concessions, several requests for further concessions were made to CBSL and Government Authorities by borrowers representing various economic sectors, to tide over the challenges on repayment of loans amidst extraordinary macroeconomic conditions.
Sri Lanka’s renewable energy projects including wind energy ventures have become costly due economic recession and high prices of necessary components and labour as well as unavoidable expenses. Energy Ministry sources said.
Windforce PLC has flagged further cost increases in the two wind power plants it is setting up in Mannar.
In May, last year, the company informed the Colombo Stock Exchange (CSE) that the total project cost of the 10MW+5MW wind power plants would amount to Rs.6.65 billion, due to the rupee devaluation and cost increase in local material and services.
Last week, the company informed the CSE that the cost would go up further to Rs.7.45 billion, due to a toppling of a crane on the project site.
“The company wishes to inform that during the erection of the wind turbine bottom tower at location 03, Nanattan, Mannar project construction site, the hired 500T main crane toppled.
This crane is unrepairable and the company had planned to import another 750T crane on rental to continue the project. On a more positive light, no casualties were reported in the accident, due to the safety precautions in place,” a stock market filing by Windfore said.
“The damage was recorded at Rs.995 million, out of which approximately Rs.377 million will be covered by the project insurance, excluding the finance cost and other incidental cost relating to the accident.
In addition, there is also a Rs.179 million cost escalation, due to the increase of VAT and global raw material prices. Hence, the estimated cost of the project has increased from Rs.6,653million to Rs.7,450 million ,” it added.
“Consequently, the equity infusion for the project from the company’s IPO funds is to be increased to Rs.2,500 million with an expected change in the debt equity ratio from 75:25 to 65:34.
The additional IPO funds will be sourced by reallocating the funds for the Tororo Phase II Project, which is delayed, due to the on-going grid study by the Electricity Regulatory Authority (ERA) in Uganda.
This project will commence upon the completion of the grid study in July 2023 and it will be funded by the remaining IPO funds, company’s own reserves and debt financing,” it further said.
However, Windfore said as the Power Purchase Agreement (PPA) is yet to be signed, an 80 percent upward tariff rate revision is expected to the US dollar at the indicative LKR/USD rate published by the Central Bank, seven working days prior to the signing of the PPA.
As a result of the tariff revision, the project will likely earn an equity IRR of 75 percent, with a project IRR of 9.2 percent, at 1,5.6 percent WACC.
Moreover, negotiations are underway to further increase the tariff to compensate the prevailing high interest rates in the market, which will likely increase the equity IRR to 15.3 percent, with a Project IRR of 73.2 percent,” the stock market filing revealed.
According to the exchange rates issued by the commercial banks, today (08) the price of the American dollar has dropped further.
Yesterday (07) in Bank of Ceylon, the buying price and selling price of one dollar were Rs. 322.50 and Rs.337.50 and today it is Rs. 315.00 and 335.00 respectively.
In Sampath Bank, the buying and selling price of one dollar was Rs. 315 and 335; today it is recorded as Rs. 315 and Rs.330.
Yesterday, the buying and selling price of one dollar in Nations Trust Bank was Rs. 313 and 335; today it is recorded as Rs.308 and Rs.330.
The Port City is slated to break ground on the CIFC Phase One 3 towers, Villa plot and the Marina hotel in the third quarter.
The Duty Free complex within the Port City is set to open in May 2023 as well, Colombo Port Commission Chairman Dinesh Weerakkody said dismissing a recent article which alleged that the Port City stirs white elephant fears.
“The Portcity Colombo’s basic infrastructure is scheduled to be completed by the year end,” Weerakoddy added.
A Price waterhouse Coopers (PwC) study shows that Port City Colombo can significantly impact GDP, FDI inflows, and improve our BOP and create over half a million new jobs.
A realised master plan for the Port City provides 5.7 million square meters of built-up area valued at $ 15 billion.
Given the shifting external global environment, the challenges are obvious and they need to be managed going forward by hiring the right skills, meeting new international investment demand profiles and ensuring policy consistency.
The overall country environment will certainly play its part. Therefore economic stability is key. Playing down these challenges in favour of negative sound bites will be counterproductive and defeatist at best, Weerakkody added.
DAILY FT
The President’s Senior Adviser on National Security and Chief of Presidential Staff Sagala Ratnayake said that the International Monetary Fund (IMF) representatives have acknowledged the effectiveness of President Ranil Wickremesinghe’s efforts to revive the country’s weakened economy. He added that the IMF is expected to respond positively regarding the release of the IMF first instalment.
Mr. Sagala Ratnayake expressed these views during a discussion held with representatives of trade unions recently at the Presidential Secretariat.
During the meeting, the measures to be taken by the union on March 8th and 9th to protest against the tax levied on earnings withdrawal were also discussed.
Mr. Sagala Ratnayake appealed to the union leaders to take into consideration the current economic situation of the country and requested their assistance in ensuring that essential services and other critical services in the country are not disrupted.
Furthermore, Mr. Ratnayake reassured the union leaders that the Government recognizes the challenges that professionals are facing due to the tax imposition and promised that the Government will review the matter and make necessary amendments in the near future. He also urged the union leaders to refrain from participating in any activities that could destabilize the country, warning that any such actions would have serious consequences for the economy of the country.
The union leaders highlighted that the high percentage of tax levied on their monthly income has made it difficult for them to manage their daily expenses and meet their bank loan instalments. They also pointed out that the recent hike in electricity tariffs has only made the situation worse. As a result, the union leaders requested the Government to reconsider the current percentage of taxation on earnings.
Also, the Union leaders pointed out that the Government could earn a large amount of tax revenue if a program was put in place to seek out the individuals who are evading taxes and capture them in the government’s tax net.
Minister of Power and Energy Minister Kanchana Wijesekera, State Minister D.V. Chanaka, President’s Secretary Saman Ekanayake, President’s Senior Advisor on Economic Affairs Dr. R.H.S. Samaratunga, Director General of Trade Unions Saman Ratnapriya, Chairman of the Ceylon Petroleum Corporation Mohamed Uvais, Chairman of Bank of Ceylon Roland C. Perera, Chairman of People’s Bank Sujeewa Rajapakse, Sri Lanka Ports Authority Chairman Keith Bernard, Trade Union Representatives of the Petroleum Corporation, General Managers of State Banks and Trade Union Representatives of the State Banking Sector, Trade Union Representatives of Sri Lanka Ports Authority were present at this occasion.
