By: Staff Writer

Colombo (LNW): Despite challenges posed by the economic crisis, Sri Lanka continues to draw tourists in considerable numbers.

Priyantha Fernando, the Chairman of the Sri Lanka Tourism Development Authority SLTDA, released these figures, noting a marked increase in the overall number of visitors this year.

He stressed the need of introducing an aviation policy for the robust tourism development policy to attract 5 million tourists by 2029

Fernando noted a historic lack of synergy between tourism and aviation policies, highlighting the urgent need for a marketing-oriented approach to entice airlines and bolster inbound tourist traffic. “

He claimed that the decades-old aviation policy has shielded the national carrier, restricting Sri Lanka from fully capitalizing on potential tourist markets.

The cumulative count of foreign tourists stands at an impressive46, 308 up to September 12 this year 2023.

This substantial number of arrivals signifies a steady recovery and growth in the tourism sector of the nation, showing the resilience and attractiveness of Sri Lanka as a top travel destination

Tourism industry’s resurgence continues with the country welcoming over 950,000 visitors’ year-to-date (YTD), marking a significant milestone after a three-year hiatus.

During the first 12 days of September, Sri Lanka received 46,308 tourists, propelling the cumulative figure to an impressive 950,626.

For 2023, Sri Lanka Tourism has set an ambitious goal of over 1.55 million visitors. The authorities anticipate 73,893 more arrivals during the following two weeks to meet the monthly target of 120,201 tourists.

India continues to be the strongest source market for Sri Lanka, both for the YTD figures and September arrivals. In the first 12 days of September, a total of 12,252 tourists arrived from India, while visitors were also recorded from the UK, Germany, Russia, and Australia.

This resurgence is a testament to Sri Lanka’s enduring appeal as a tourist destination and its successful efforts in revitalizing the tourism sector after multiple setbacks experienced since 2019 for three consecutive years.

Sri Lanka Tourism Development Authority Chairman, Priyantha Fernando, said that a well-crafted aviation policy has to be formulated to archive the country’s ambitious target of attracting 5 million tourists by 2029.

In June, the International Air Transport Association (IATA) has called on Sri Lanka to take steps towards creating an aviation blueprint for greater economic growth and prosperity through the development of a robust aviation industry.

Over the past 15 months, eight airlines have recommenced their operations in Colombo, driven solely by commercial considerations due to high demand.

However, Fernando stressed that this alone is insufficient, emphasizing the pressing need for enhanced synergy and a comprehensive policy framework to revolutionize and sustain both industries.

By: Staff Writer

Colombo (LNW): The Korean government today assured that they have taken necessary measures to open up new employment opportunities for Sri Lankans in Korea and increase the number of jobs provided to Sri Lankans.

The decision was announced following an official meeting between Korea Labour and Employment Minister Lee Jung-Sik and Minister Manusha Nanayakkara today at the Ministry.

On the invitation of the Sri Lanka Labour and Foreign Employment Minister Manusha Nanayakkara, Korean Minister Lee Jung-Sik arrived in Sri Lanka yesterday morning for a two-day official visit.

They had a long discussion on taking necessary measures to get more employment opportunities for Sri Lankans in Korea.

The Korean Minister told Minister Nanayakkara that after 20 years the EPS system under which foreigners are recruited for employment in South Korea will be amended and as a result Sri Lankan job aspirants will get more opportunities to work in Korea.

Minister Nanayakkara requested that Korea opens up new employment fields such as the garment sector and caregiver sector, and received a positive response from the Korean Minister.

It was discussed that a large number of workers are needed for jobs in the Korean ship construction industry and that there are more opportunities for Sri Lankan skilled workers in that sector.

Minister Lee Jung-Sik further assured the fullest support to every step taken in the future to provide more employment opportunities to Sri Lankans in Korea by further strengthening the bilateral relations between the two countries.

The minister further stated that the agreement was made during a discussion held between the two parties

It had also been agreed to refer 600 people who are currently registered on the Korean job website after passing the Korean language proficiency test under the production sector category for jobs in the shipbuilding sector.

Priority will be given to job seekers registered on the website, whose period for securing a job will expire by December 31 this year.

Accordingly, these jobs are to be provided by shifting the job category from the production sector of the website to the ship construction sector.

Thus, candidates who are willing to change their job category from production to the shipbuilding industry should apply for it as soon as possible, he said.

Minister Nanayakkara also stated that the Korean Human Resources Department has also agreed to conduct examinations and recruit 900 welders and painters for jobs in the shipbuilding industry under the E9 visa category from next year.

He added that the Director of the Korean Human Resources Department has also informed that from next year, the Korean Language Proficiency Test will be conducted using the UBT system instead of the current computer-based CBT system.

By: Staff Writer

Colombo (LNW): The Monetary Board of the Central Bank yesterday declared that opting for the DDO was in the best interest of the members of the EPF based on the two options available, given that a large share of its assets is invested in Treasury bonds.

In a statement, the Monetary Board said it envisaged that of the two options, Debt Exchange (as opposed to Non-Exchange) is distinctly the better option considering the assessments made on the basis of several prudent and realistic assumptions.

Further, the Monetary Board was of the view that with the proposed Debt Exchange and the other reforms being implemented by the Government, the sustainability of public finance will be restored with its ability to service its debt.

The Monetary Board was also cognizant that unless debt sustainability is restored without undue delay, there is a high risk of the Government not being in a position to fully service obligations on the pre-exchange bonds held by the EPF leading to very serious adverse consequences to the EPF.

“Hence, opting for the DDO was in the best interest of the members of EPF based on the two options available, given that a large share of the EPF’s assets is invested in Treasury bonds,” the statement said. The face value of the Treasury bonds portfolio of the EPF is Rs. 3.2 trillion.

“It is also important to note that after the participation in DDO, current balances of EPF members will not be reduced and the Fund will be able to distribute at minimum 9% per annum return to members in the foreseeable future,” the statement added.

The Monetary Board of the CBSL as the custodian of the EPF, having considered the two options decided to opt for the Debt Exchange offer with a long-term view in the best interest of the members of the Fund.

“Accordingly, the EPF tendered Rs. 2., 67trillion face value of Treasury bonds for Debt Exchange, including an additional Rs. 1.49,trillion in excess of the minimum participation requirement considering its comparative benefits to the Fund.

The Government has accepted the same and issued new Treasury bonds to EPF with an equivalent face value,” the statement said.

Members representing the Colombo Port City Economic Commission have confirmed that food stalls within the Colombo Port City, deemed as leisure activities, will be phased out by March 2027. This decision was prompted by inquiries from the Committee on Public Finance regarding the legality of establishing such stalls in an area primarily designed to attract foreign investments.

The discussion transpired during a session of the Committee on Public Finance in Parliament, chaired by Dr. Harsha de Silva. The committee delved into the regulations under the Colombo Port City Economic Commission Act, No. 11 of 2021, slated for presentation in Parliament on Tuesday, September 19.

The committee sought clarification on the legal basis for permitting these food stalls and the rationale behind their removal by 2027. They also inquired whether the Attorney General had been consulted in this matter. Consequently, the committee instructed the Colombo Port City Economic Commission and the Attorney General’s Department to promptly furnish relevant information.

Additionally, the committee inquired about the revenue generated by government activities within the port city. They directed officials to provide comprehensive details for better understanding before approving the regulations.

Given that the Port City is being developed as a distinct landmass under the Smart City concept, the committee questioned whether elements like wastewater management, renewable energy, and proper sewage systems had been incorporated. The committee emphasized the importance of avoiding issues related to inadequate sewage and wastewater management seen in other parts of the country during Port City development.

It was also revealed that government institutions such as the Road Development Authority, Urban Development Authority, and Water Board have allocated significant funds to facilitate Port City construction and development. In light of this, the committee pressed the Commission to elucidate the benefits that taxpayers would reap from these investments.

In response, the Committee on Public Finance instructed Commission members to provide a breakdown of government expenditures related to the Port City and its infrastructure, along with details on revenue streams.

The Committee meeting included the presence of State Minister Dr. Seetha Arambepola and MPs Chandima Weerakkody, Nimal Lanza, Major Pradeep Undugoda, Premnath C. Dolawatte, Madhura Withanage, and Sumith Udukumbura.

Urban Development and Housing Minister Prasanna Ranatunga is championing the revitalization of Minuwangoda city, envisioning it as a thriving commercial center poised to attract businesses, investments, and industrial growth.

During a recent discussion at the Urban Development Authority in Sethsiripaya, Battaramulla, Minister Ranatunga emphasized the need to employ advanced technology and modern urban planning to shape Minuwangoda city for the contemporary world.

The forthcoming Minuwangoda City Development Plan, crafted by Urban Development Authority engineers and architects, is expected to prioritize environmental preservation, ensuring the protection of natural assets such as paddy lands.

Proximity to the Katunayake Bandaranaike International Airport has spurred plans for a new road from the Ambagahawatta area, bypassing Minuwangoda for quicker airport access. As part of the development, the UDA plans to acquire nine acres within Minuwangoda city.

This ambitious endeavor will usher in private hospitals, parking facilities, shopping malls, playgrounds, and amusement parks, ushering in a vibrant transformation for the area.

Galoya Plantations (Pvt) Limited (GOPL) has poured Rs. 12 billion into the construction of a cutting-edge factory. This ambitious project is set to crush 4,500 metric tons of sugarcane daily and generate a whopping 8.75 MW of electricity, with 5 MW fueling their own operations.

The brain behind this visionary initiative, Danesh Abeyratne, the Executive Director of the Galoya Plantation Company, shared his enthusiasm for their endeavor. He highlighted the significance of this venture, which is set to surpass the power output of the Inginiyagala Senanayake Samudraya Reservoir’s power plant by generating a staggering 15 MW of electricity.

The foundation stone for this groundbreaking project was laid just last month, with an ambitious goal to have it fully operational by 2025. Abeyratne went on to reveal that GOPL, which resurrected the former Hingurana Sugar Industries Limited in 2007, had faced significant challenges. However, through determination and commitment, they have succeeded in revitalizing the once-faltering sugar industry, making a substantial contribution to the local sugar production landscape.

Their journey wasn’t without its hurdles. Initially unable to secure local bank credit due to the previous management’s financial mismanagement, GOPL sought funding within their own group. Moreover, they faced the delicate task of rebuilding trust among sugarcane growers who had been repeatedly let down in the past. Abeyratne and his team addressed this by entering into forward buying agreements, ensuring that farmers would indeed reap the rewards of their hard work.

The results have been nothing short of remarkable, with many sugarcane growers switching from paddy cultivation to sugarcane farming, lured by the promise of better returns and reliability. GOPL has paid out approximately Rs. 14 billion to farmers to date, solidifying their commitment to local agriculture.

In a nation where 87% of sugar requirements are met through imports, GOPL has emerged as a beacon of hope, contributing a remarkable 36% to the local sugar production landscape. Their adoption of modern technology, including mechanization and drones, has not only boosted production but also sparked a renewed interest among the youth in sugarcane farming.

With unwavering dedication and strategic collaborations, GOPL proudly reported a Profit After Tax (PAT) of Rs. 5.6 billion for the 2022/23 financial year and foresees an increase to Rs. 6.1 billion in the 2023/24 FY. They have also contributed significantly to the nation’s finances, paying approximately Rs. 1,430 million in taxes since their inception, including a notable Rs. 600 million as corporate income tax for the year 2022/23.

During his two-day visit to Sri Lanka, Korean Labour and Employment Minister Lee Jung-Sik assured Minister Manusha Nanayakkara of increased job opportunities for Sri Lankans in Korea.

The two ministers discussed amending the EPS system to facilitate more employment for Sri Lankan job seekers in Korea, with a focus on sectors like garment and caregiving.

Minister Lee Jung-Sik also expressed admiration for the productivity and dedication of Sri Lankan workers in Korea, pledging continued support for strengthening bilateral relations and providing more employment opportunities in the future.

In response to an invitation from Sri Lanka’s Financial Intelligence Unit, a high-level delegation from the Asia Pacific Group on Money Laundering (APG) visited Sri Lanka recently. The high-level delegation consisted of eminent personalities, including Mr. Julien Brazeau: APG Co-Chair and Associate Assistant Deputy Minister of Canada’s Department of Finance in Ottawa within the Financial Sector Policy Branch, Dr. Gordon Hook: Executive Secretary, APG and Mr. David Shannon: Director Mutual Evaluations, APG.

Their aim was to provide crucial insights ahead of the upcoming mutual evaluation of Sri Lanka’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Framework.

The APG, an integral regional monitoring body under the Financial Action Task Force (FATF), focuses on guiding member jurisdictions in implementing international standards to combat money laundering (ML), terrorism financing (TF) and proliferation financing related to weapons of mass destruction (PFWMD). FATF oversees about 200 countries through nine regional bodies.

Sri Lanka has faced “Grey List” designation twice by FATF, in 2011 and 2017, with the European Union also blacklisting the nation in 2017 due to non-compliance.
Sri Lanka’s 3rd Mutual Evaluation is set for March 2025. It’s crucial to achieve Technical Compliance with FATF’s 40 Recommendations and ensure effective AML/CFT framework results. The country is actively engaging 24 stakeholders in this effort, coordinated by the Financial Intelligence Unit.

During the 3-day visit, the delegation met with key Sri Lankan figures, including the President, Chief Justice, Foreign Minister, Attorney General and Central Bank Governor. Sri Lanka’s leadership recognizes the importance of the upcoming mutual evaluation for economic and societal security.

To prepare effectively and avoid economic consequences tied to FATF grey-listing, Sri Lanka prioritizes Focus on Effectiveness:

• Emphasize the ability of the AML/CFT system to produce operational results that address Sri Lanka’s specific risks effectively
• Enhanced Monitoring: Stakeholders should intensify monitoring of progress and operational outcomes to support the advancement of priority implementation plans and surmount any obstacles to effectiveness.
• Timely Legislation: Expedite the passage of critical AML/CFT-related legislation to ensure the availability of the necessary tools for achieving operational outputs.
• Resource Allocation: Allocate resources to agencies responsible to implement the AML/CFT framework to facilitate the achievement of operational outcomes.
• Inter-Agency Coordination: Sustain inter-agency coordination through effective leadership and well-supported mechanism for targeted planning and progress monitoring in line with implementation plans.
• Prosecutor: Enhancing the capacity and active involvement of prosecutors in money laundering and terrorism financing cases.
• Law Enforcement: Bolster implementation by law enforcement agencies, particularly through the clearance of backlogs in money laundering cases and increase in the scope of asset recovery and money laundering-related activities.
• Judiciary: Improve the capacity of the Judiciary for timely and effective adjudication of money laundering cases and terrorism financing cases
• Private Sector Engagement: Encourage active involvement of the private sector, fostering shared goals with the government for priority implementation of AML/CFT systems.
• International Cooperation: Strengthen and focus on international cooperation, recognizing its pivotal role in demonstrating effectiveness. Foster deeper collaboration with countries that share key money laundering and terrorist financing risks.

By diligently following these priorities, Sri Lanka aims to secure a positive outcome in its mutual evaluation and mitigate the economic consequences associated with FATF Grey-Listing. Stakeholders are committed to addressing AML/CFT Framework gaps effectively.

Minister of Agriculture Mahinda Amaraweera has provided reassurance that egg and chicken prices in Sri Lanka are anticipated to decrease next year and maintain stability thereafter. He also indicated that the country may no longer need to import eggs from the coming year.

Speaking at a press conference held at the Presidential Media Centre on September 14, Minister Amaraweera attributed the temporary decline in Sri Lanka’s poultry and egg production industry to reduced animal feed production caused by the COVID-19 pandemic and the economic crisis. He highlighted that the private sector currently manages the entire poultry and egg production, with the total chicken population on farms exceeding 3,420,000.

Minister Amaraweera noted that many of these chickens are expected to begin laying eggs by December, which is expected to significantly boost egg production in the country. Additionally, the government has allowed industrialists to import maize for poultry feed production, a move that is expected to benefit consumers in the future.

The minister also mentioned that the mid-term Livestock Development Program has allocated Rs. 37 million to enhance livestock services in the Northern Province. Furthermore, the Small and Medium Scale Poultry Development Project, focusing on producing one-day-old country chicken chicks and improving egg production in rural areas, has received funding of Rs. 48 million.

Before the COVID-19 pandemic and the economic crisis, Sri Lanka’s annual chicken meat production stood at 230,000 metric tons, with a per capita chicken meat consumption of 11 kg per year. However, recent challenges and the pandemic have led to a 30% reduction in local chicken meat production.

Industrialists are optimistic that the production of chicken meat can rebound to pre-crisis levels by the end of this year, thanks to the addition of more broiler chickens to farms. Consequently, it is expected that chicken and egg prices will continue to decrease.

To achieve self-sufficiency in milk production, the Ministry of Agriculture has devised both short and long-term plans, including the National Dairy Policy for 2023 to 2028. Sri Lanka imported 82,087 metric tons of milk and milk-related products in 2021, highlighting the reliance on imports to meet domestic demand.

The government is also taking steps to improve grass and fodder cultivation, enhance breeding farms, and expand artificial insemination services to boost milk production. Additionally, a large-scale animal production farm has been initiated at the Polonnaruwa Farm, with an investment of approximately Rs. 250 million.

The Employees’ Provident Fund (EPF) has announced its proposal to exchange the portfolio of Treasury Bonds held by the fund as part of the Domestic Debt Optimization (DDO) program.

In a statement, the Central Bank of Sri Lanka revealed that this offer has been extended by the EPF Fund as an eligible participant, with the approval of the bank’s Monetary Board.

This decision aligns with an invitation extended by the Ministry of Finance following a Resolution passed by Parliament.

https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20230914_participation_of_the_employees_provident_fund_in_the_domestic_debt_optimisation_programme_e.pdf