Colombo (LNW): President Ranil Wickremesinghe has reportedly informed the Criminal Investigation Department (CID) to launch an immediate probe into Pastor Jerme Fernando, who recently has driven himself into hot soup by making a public statement allegedly insulting Lord Buddha.
The Head of the National Security raised concerns with the President over Pastor Fernando’s comments against Buddhism, Islam and Hinduism, stressing that such ideology could lead to communal tensions in the country, a report by Daily Mirror said.
President Wickremesinghe responded by saying that he would not allow any individual to destabilise the country and stressed that anyone instigating religious disharmony should be probed and stern actions should follow.
Pastor Jerome Fernando, who calls himself the Prophet of God, is a leading advocate for the Glorious Church in Colombo, Sri Lanka, and was recently subject to controversy over a video surfacing on Social Media revealing him make a comment allegedly insulting Lord Buddha and Buddhism.
Parties concerned on Pastor Fernando’s comments are of the view that he is undertaking an activity of a bigger project behind the curtain, paving the way for publicly disowned political leaders to make a comeback, simply by instigating religious disharmony in the same manner to which certain Buddhist monks and extremist groups not very long ago resorted.
Colombo (LNW): “CEB proposal for the July 1st Electricity tariff revision has been submitted to the PUCSL this afternoon. CEB has submitted the proposal according to the Govt policy decisions & tariff filling requirements to adjust the tariffs biannually on January 1st & July 1st every year. CEB has taken into consideration the actual generation data, actual price of inputs, generation mix & forecast for 2023 while giving the maximum benefit of adjustments to low consumption users.“
The above remark has been made by Power and Energy Minister Kanchana Wijesekara.
He added: “With the 30th Cargo of Coal currently unloading at Norochcholai, the full coal requirement of CEB for this season will be completed. There will be No Black Outs or Power Cuts as speculated earlier by CEB unions & media reports due to Coal shortages.“
Colombo (LNW): SriLankan Airlines says it did not receive any outside funding in the last two years.The airline also said it suffered a foreign exchange loss of LKR142.6 billion resulting from the revaluation of net foreign currency liabilities due to the sudden depreciation of the Sri Lankan rupee exchange rate in March 2022.
The group, in fact, made an operating profit according to the audited financial statement and before the occurrence of exchange losses, amounting to LKR1.7 billion in the year.
This is a significant achievement considering the issues faced by airlines worldwide during that period owing to the Pandemic, SriLankan Airlines said in a statement.
SriLankan Airlines presented its unaudited dollar financial statements for the latest financial year that ended in March 2023 at the recent COPE meeting in the Parliament.
During the recently completed fiscal year, the airline generated a passenger and cargo revenue of USD994 million and an operating profit of USD53 million.
The operating profit at group level was USD104 million. The group, however, incurred financing costs of USD101 million, resulting in a profit of USD3 million.
These figures may vary slightly during the finalization of year-end accounts, but essentially the airline has broken even for the first time in over a decade.s the Chairman of SriLankan Airlines stated during the recent COPE meeting, the airline has received no funding in the last two years, and continues to operate using its own cashflows.
The airline maintains operating margins in line with the best industry standards. And it is optimistic that these will be stronger in the year ahead as the country moves forward from the challenges of 2022.
As discussed at the COPE meeting, the biggest challenge yet is the country’s situation and extremely high financing costs
Although 2022 represented a year of solid recovery from the COVID-19 pandemic for the aviation industry, airlines are still facing annual losses. For instance, the Sri Lankan national carrier SriLankan Airlines reported a loss of $525 million in the year to March 2023.
Undeniably, the demand for air travel in 2022 increased to unexpected levels. Although some airlines have managed to jump on the opportunity and recoup part or all the losses suffered during the COVID-19 pandemic, some others still have to deal with negative financial results.
In December 2022, the airline failed to repay interests covering a timespan of five years on loans obtained from local financial institutions.
Notably, the Sri Lankan National Audit Office (NAO) stated the airline received $200 million in 2016/2017 and loan facilities amounting to $80.5 million from two different state banks to address short-term financial needs.
As of March 31st, 2021, the total amount due by the SriLankan carrier amounted to $196 million. Additionally, during the financial year 2021/2022, the airline secured another loan of $75 million.
Colombo (LNW): Plaintiff Hamilton Reserve Bank Ltd. (HRB) and the defendant Government of Sri Lanka submitted a joint status letter on Friday to the Southern District Court of New York outlining the schedule in response to the order US District Judge L. Denise Cote issued on 20 April.
THE Court has ordered the Sri Lankan Government and its sovereign bondholder Hamilton Reserve Bank (HRB) to submit a joint status letter by 12 May 2023.
The decision by US District Judge Denise Cote follows a conference held involving the two parties on 20 April.
The Government in early April in its answers to HRB’s Amended Complaint, denied almost all the allegations.
Via its attorneys Clifford Chance US LLP, the Government said the Plaintiff HRB’s claim is barred, in whole or in part, by reason of Sri Lanka’s sovereign immunity.
Furthermore the Plaintiff’s claim is barred, in whole or in part, because Plaintiff lacks standing to sue and Plaintiff’s claim is barred, in whole or in part, and/or should be stayed, on the grounds of international comity.
HRB owns over $ 250 million in principal amount of the $ 1 billion worth International Sovereign Bonds (ISBs) issued in 2012. The Bonds matured on 25 July 2022.
Hamilton alleged that as a result of Sri Lanka’s default, it is owed $ 250.19 million in principle and $ 7.349 million in accrued interest (before accounting for pre-and post-judgement interest).
HRB, represented by Bleichmar Fonti and Auld LLP and Jenner and Block LLP, initiated this action on 21 June 2022 after which on 21 September Sri Lanka filed a motion to dismiss the complaint.
According to this schedule, jointly signed by the plaintiff’s lawyers Bleichmar Fonti and Auld LLP and the defendant’s lawyers Clifford Chance US LLP both parties are required to complete the discovery before 20 June, the summary judgement motions by 26 June, summary judgement opposition and cross-motions to stay by 17 July, and the summary judgement replies by 31 July this year.
Opposition to cross-motion to stay is due on or before 14 August followed by the cross-motion to stay reply due on or before 31 August, 2023.
The lawyers for the plaintiff and the defendant jointly stipulated a protective order to the Court regarding the discovery material, which includes information of any kind produced or disclosed in the course designated as confidential, limiting access and use by parties not related to the case. Judge Cote so ordered the stipulation.
Sri Lanka in mid-April announced a moratorium on foreign debt repayments, including the Bonds and since then has made no payments on the Bonds. The Government of Sri Lanka filed a motion in September 2022 to dismiss on the grounds that the plaintiff lacks contractual standing.
Colombo (LNW): The Sri Lankan Rupee continues to remain stable against the US Dollar at a number of leading commercial banks, in comparison to the week earlier.
The People’s Bank’s exchange rates reveal the buying rate and the selling rate of the US Dollar remains unchanged at Rs. 303.63 and Rs. 320.97, respectively.
At Commercial Bank, a similar situation follows, as the buying rate and the selling rate of the US Dollar remains unchanged at Rs. 304.84 and Rs. 318, respectively.
At Sampath Bank, the buying and selling rates of the US Dollar remains unchanged at Rs. 306 and Rs. 321, respectively.
Colombo (LNW): The lawsuit filed at a Singaporean court demanding compensation for the eco-damage caused by the destruction of the cargo vessel MV X-Press Pearl is set to be taken up for a second date today (15).
The case was first taken up at the said Singaporean court on May 09, 2023. A Singaporean legal firm will be appearing on behalf of Sri Lanka.
The destruction of the cargo vessel MV X-Press Pearl by fire on May 20, 2021 was reportedly the worst environmental disaster in Sri Lanka in the recent history.
The AG’s Office filed a lawsuit before a Singaporean court demanding compensation for the eco-damage, but concerned parties opined that a trial can be called upon at a Sri Lankan court.
The Marine Environment Protection Authority (MEPA) commented measures have been taken to reassess the damage caused by damage.
01. Deputy Director of Medical Services Dr. G. Wijesuriya says a major increase in the number of dengue cases can be expected in SL; adds the record in 2023 so far is three times higher than that of the corresponding period of the last two years.
02. Ruling Party MP Dhammika Perera says the forex crisis leading to the decline of imports and subsequently the decline of income via customs duty has stemmed the increase of taxes, hence the problems with the current tax system.
03. Former MP P. Harrison announces he will resign from his position as the Vice Chairman of the Samagi Jana Balawegaya and leave the Party to extend his fullest support to President Ranil Wickremesinghe; adds 20 more will join.
04. SJB MP Dr. Harsha De Silva warns against the “potential risks of domestic debt optimisation,” stressing the need for ‘extreme caution’; adds if not managed carefully, domestic debt optimisation could become a burden rather than a relief for the economy: Silva was a strong advocate for the April 2022 ‘debt default’ leading to the subsequent submission to IMF conditions.
05. Many low-lying areas in Galle and Matara districts have severely been affected by flooding caused by the overflowing of Nilwala and Ginganga rivers due to adverse weather conditions: Traffic obstructed: Power outages reported in several areas.
06. Public servants required to resume the scanning of their fingerprints when reporting for duty and leaving the offices from today: The fingerprint scanning system was suspended in January, 2022 due to the Covid pandemic.
07. Sri Lanka’s national carrier SriLankan Airlines says it did not receive any outside funding in the last two years; adds it suffered a forex loss of Rs. 142.6 billion resulting from the re-evaluation of net foreign currency liabilities due to the sudden depreciation of the Sri Lankan Rupee in March 2022.
08. The Hamilton Reserve Bank (HRB) Ltd. and the Government of Sri Lanka submit a joint status letter to the Southern District Court of New York outlining the schedule in response to the April 20 order by US District Judge L. Denise Cote: HRB owns over US$ 250 million in principle amount of the US$ 1 billion ISBs matured on July 25, 2022: HRB alleged SL owes US$ 250.19 million in principle and US$ 7.349 million in accrued interest due to the ‘debt default’: GOSL denies almost all the allegations.
09. The Australian Government announces it will gift a former Royal Australian Air Force Beechcraft KA350 King Air aircraft (registration A32-673) to the Sri Lankan Government: The aircraft to be used to enhance Sri Lanka’s sovereign aerial maritime surveillance capability.
10. The case filed by Sri Lanka at a Singaporean court seeking compensation for the eco damage caused by the MV X-Press Pearl disaster to be taken up again today: A Singaporean law firm to appear for the case representing Sri Lanka: Case was taken up for the first time on May 09, 2023.
Colombo (LNW):Sri Lanka’s ongoing dollar crisis is still persisting even amidst the receiving the US$333 million first tranche of $ 3 billion IMF Extended Fund Facility.
Sri Lanka‘s business tycoon MP Dhammika Perera has charged that the island nation is yet to create a stable path for the inflow of dollars into the country.
Speaking at an event in Middeniya, Hambantota, and the business tycoon attributed the ongoing tax crisis in Sri Lanka to the shortage of dollars.
He explained that owing to the lack of dollars, Sri Lanka’s imports have reduced significantly, thereby directly affecting the income earned through the Customs tariffs and duties.
“In order to earn the money lost from Customs tariffs and duties, other taxes are being increased. The preliminary problem behind this is the lack of dollars.
There is still no proper way through which we can earn dollars”, he said in this regard adding that.he has laid out a 12- point Dollar earning strategy for crisis-hit Sri Lanka.
The Sri Lanka businessman turned MP says his action plan is aimed at generating an additional inflow of US$8 billion per annum from 12 key strategies.
Dhammika Perera further said the government will not incur any additional capital investment by implementing the suggested 12 strategies.
The action plan of Dhammika Perera which was proposed some time ago is now receiving attention, as he has now joined the government in a possible bid to implement his strategies.
Sri Lanka’s foreign reserves grew 2.2 percent to 2,755 million US dollar in April 2023 from 2,694 million US dollars in March, central bank data showed.
Sri Lanka’s rupee appreciated from around 360 to the US dollar to 320 and has since been at that level.
Sri Lanka has to increase net international reserves by 710 million US dollars by June 2023 under an International Monetary Fund deal.By April gross reserves have risen by around 859 million dollars.
To buy reserves from inflows (central bank has to take in deposits in dollars against rupee) Sri Lanka has to keep interest rates high enough so that that the rupees are not invested or spent and can be mopped up (domestic investment has to be curtailed).
Sri Lanka in the first quarter had liquidity shortages to absorb the rupee and prevent their loaning by banks.However the liquidity shortages are easing, through private credit demand is negative
Sri Lanka’s remittances from official channels rose to 454 million US dollars in April 2023, up 82.9 percent from a year earlier, as more expatriates use formal banking networks to send their earnings, the central bank revealed.
Sri Lanka’s monthly remittances coming through official channels ranged between 500 to 600 million US dollars a month
The remittances in the first four months of 2023 also jumped 81 percent to 1,867.2 million US dollars compared to 1,031.5 million in the same period last year.
Colombo (LNW): Sri Lanka’s apparel sector, once thriving as a foreign exchange spinner for the country, begins its downfall amidst the current economic crisis.
Apparel export earnings are set to slump by US $1 billion this year, a top industry expert said, as slowing global demand hits the crisis-hit South Asian country.
Apparel is Sri Lanka’s largest industrial export and earned $5.95 billion in 2022, helping the country as it weathered its worst financial crisis since independence in 1948, triggered by a record reduction in foreign exchange reserves.
But the industry’s first-quarter performance in 2023 has struggled with textiles and garment exports dropping 13.8% to $1.3 billion, data from Sri Lanka’s central bank showed.
Exports in March marked the lowest in three years, said Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), which is the industry’s apex body.
Sri Lanka’s garment sector made up almost half its export revenue last year, after remaining resilient even through the pandemic and the country’s debilitating economic crisis.
But shocks in the international market have led to a plunge in demand, prompting factories to lay off hundreds of employees.
Apparel is one of the biggest export earners in Sri Lanka, an industry that produces goods for major global retailers such as Marks & Spencer, Victoria’s Secret and Nike, among other brands.
Last year, the sector accounted for some 46 per cent of Sri Lankan export revenues, or US$5.93 billion.
But amid a challenging global economy, year-on-year export volumes shrank about 11 per cent by March this year, industry statistics showed.
Softening market conditions in the United States, European Union and Britain; fears of a global recession; and the Russia-Ukraine war accounted for a sharp contraction in demand, said Yohan Lawrence, head of the Joint Apparel Association Forum of Sri Lanka.
But the industry has bigger worries. Data suggests Sri Lanka is losing market share to neighbouring Bangladesh, Lawrence said.
From 2021 to 2022, Sri Lanka’s export revenue rose by 10 per cent, from some US$5.07 billion to US$5.59 billion, while that of Bangladesh grew by 28 per cent, from US$35 billion to US$45 billion.
The fact Bangladesh’s growth accounted for almost double of Sri Lanka’s entire market share was deeply worrying. “If that does not frighten [the country], I don’t know what does,” Lawrence said.
Trade agreements are at the core of this dynamic, since Bangladesh as a least developed country (LCD) holds more preferential trade terms, and could export apparel free of duty to the EU and the UK under the “Everything but Arms (EBA)” trade agreements.
Sri Lanka, however, trades under the Generalized System of Preferences, which comes with conditions based on the rules of origin.
As a result, apparel made in Sri Lanka is less price-competitive than that of Bangladesh.“[Sri Lanka] has to lobby for better trading terms,” Lawrence said.
