Severe weather conditions have wreaked havoc in various areas of the Western and Sabaragamuwa Provinces, leaving local communities grappling with the challenges posed by floods. In response to this crisis, the Sri Lanka Navy swiftly sprang into action on Sunday, mobilizing four relief teams to provide much-needed aid to the affected areas, including Bulathsinhala, Baduraliya, Lathpandura, and Kalawana.

One of the notable efforts undertaken by the Navy relief teams was the rescue and assistance of a group of school children who found themselves stranded in the flood-hit Lathpandura area of Baduraliya in the Kalutara district. These students were facing the threat of being unable to reach their examination centers for the upcoming G.C.E. Ordinary Level examination. Recognizing the urgency of the situation, the Navy promptly arranged a boat service to transport the stranded students, ensuring they would not miss this crucial academic milestone.

In addition to the successful rescue operation, the Navy relief teams have been diligently working to alleviate the hardships faced by the affected communities. The dedicated personnel have been providing essential supplies, including food, water, and medical assistance, to those who have been displaced or isolated by the floods.

In a recent revelation, the Association of Health Professionals has brought to light the disheartening fact that the automatic vaccination machine, worth a staggering Rs. 200 million, attached to the PET Scan machine at the Cancer Hospital in Maharagama, has been lying dormant for over a year. This unfortunate situation has arisen due to the unavailability of the FDG chemical and connection tubes necessary for its operation.

Upon inquiry by Ada Derana, Dr. Aruna Jayasekara, the Director of the Maharagama Cancer Hospital, acknowledged that while the automatic vaccinations using the PET Scan machine have been suspended, other essential tests are still being conducted using the equipment as usual.

The PET Scan machine, a vital tool in accurately identifying the location of cancer cells and facilitating targeted treatment for patients diagnosed with cancer in specific internal organs, was acquired by the Maharagama Cancer Hospital in 2018. This acquisition was made possible through the collaboration of Manusath Derana, which assisted in raising the necessary Rs. 200 million in funds along with contributions from the hospital and generous donors.

Subsequently, the hospital invested in an automatic vaccination machine to administer the FDG chemical during PET scans, aiming to streamline and improve the efficiency of the process.

The current predicament has caught the attention of the Government Medical Officers’ Association (GMOA), which has estimated that it will take a minimum of two weeks to restore the machine’s functionality and resume its crucial activities.

Showers or thundershowers will occur at times in Western and Sabaragamuwa provinces and in Galle and Matara districts. Fairly heavy showers above 75 mm are likely at some places in the Sabaragamuwa Province and in Galle, Matara and Kalutara districts.

Several spells of showers will occur in North-Western province.

Showers or thundershowers will occur at a few places in Uva and Central provinces and in Ampara and Batticaloa districts during the evening or night.

Strong winds about (40-45) kmph can be expected at times in Northern and North-Central provinces and in Hambantota, Puttalam and Trincomalee districts.

Addressing the National Law Conference, June (03), President Wickremesinghe said that Sri Lanka’s next country assessment on Anti-Money Laundering and Countering the Financing of Terrorism will commence soon.

The assessment, slated to commence soon, holds immense significance as it directly impacts the country’s ease of doing business rating and its ability to attract foreign investments.

In an important development, Sri Lanka has been informed about the impending country assessment on anti-money laundering and countering the financing of terrorism. This assessment holds significant weight as Sri Lanka’s compliance in these areas is crucial for enhancing the ease of doing business rating and attracting foreign investments.

As discussions unfold, it becomes apparent that addressing the identified gaps in the anti-money laundering and counter-terrorism financing framework is of utmost importance. Failure to rectify these gaps poses a potential risk of Sri Lanka once again being labelled as a country with strategic deficiencies. Such a designation could have severe adverse effects on the country’s economic development.
Recognizing the urgency, it is imperative for Sri Lanka to prioritize bridging these gaps, which will also support the governance and anti-corruption framework, ensuring the successful implementation of the International Monetary Fund (IMF) program.

During the discussions, various issues have come to light. One major concern is the bureaucratic hurdles and legal complexities faced by the citizens, resulting in frequent court visits. Participants reflect upon the past, where significant infrastructure projects were accomplished within specified timeframes, even amidst an ongoing war. However, the current administrative structure and an excess of legal professionals hinder the timely completion of projects, demanding a comprehensive review.

To tackle these challenges effectively, a recommendation is made for all stakeholders, including the bench, the bar, the government, and the parliament, to convene and compile a joint report. This collaborative effort would provide a clear roadmap for addressing the backlog and delays caused by legal proceedings. Additionally, it is emphasized that the formulation of a national policy, determined by parliament rather than the cabinet, is essential to resolve various issues and ensure broad agreement on critical subjects.
Following is the speech delivered by President Ranil Wickremesinghe –
Well, it’s been a long and fruitful discussion, but I don’t think I should keep you all too long because yesterday, I was given 15 minutes, but I nearly took twice that time. As the representative of the government, along with the three panel members, I will address the issues raised. One of the primary complaints has been the bureaucracy, laws, and the increasing frequency of court visits. Reflecting on my 17 years in government, during the first ten years, we successfully constructed seven large reservoirs in the Mahaveli scheme, as well as Samanala Wewa and Lunugam Vehera outside of it. We also built the Left Bank canals, Right Bank canals, and completed all these projects on time.

During President Jayawardena’s tenure, we established two investment promotion zones and a new capital with a parliament, along with several buildings. During President Pramadasa’s time, we developed two more investment promotion zones, including 200 garment factories. We managed to stay on schedule, with no major overruns, despite the on-going war at that time. However, the current circumstances make it challenging to achieve similar results. Therefore, we need to re-evaluate the entire administrative structure. Regarding the issue of backlog and law delays, which Justice Priyantha Gunawardane emphasized, I propose that all stakeholders, including the bench, bar, government, and parliament, come together to produce a unified report. This would facilitate parliamentary action and allow input from opposition lawyers.

We can all convene and work out the necessary steps within a short period of time. As a representative of the government, I will ensure the involvement of the Secretary and the treasury, depending on the available resources. Adequate funding is essential. Additionally, I recommend that the unofficial bar, official bar, and bench provide a report on other raised concerns. The lack of a national policy contributes to some of these problems. While most governments have neglected the formulation of national policies, our constitution places the responsibility on parliament rather than the cabinet. Therefore, we aim to implement this system and have already established a committee on national policy. Though agreement among all may not be guaranteed, striving for the broadest possible consensus on various subjects is our objective, ensuring their enactment.

Now, addressing the energy issue, we must first focus on unbundling the Ceylon Electricity Board (CEB). Unbundling was advised by the Asian Development Bank in 2003, but later, due to union influence, the government reversed the decision. The unions now insist on unbundling. Had we done it in 2004, we would have avoided the current problem.

The second issue pertains to renewable energy. We have a renewable energy authority under the 13th Amendment and it’s under the Provincial Councils and the other is hydroelectricity. As for the national grid, its definition remains incomplete, allowing for the possibility of parallel grids. Consequently, an energy regulator, specifically an electricity regulator, is necessary to balance the powers of the CEB and the Provincial Councils. We are currently exploring the appropriate regulatory framework and seeking resolutions for the raised concerns, including tariffs. Furthermore, we have initiated a committee on Digital Transformation to drive digitalization in the government. During my tenure as Minister of Industries and Technology, we discussed digitalization in customs, but even after 30 years, progress has been insufficient. The presence of numerous lawyers leads to further complications, with court stays being sought amid on-going processes. To address this problem, we are introducing a new system inspired by the Malaysian model the Lab methodology. This system involves bringing all stakeholders together to discuss and provide a report within six weeks, which the government will then implement. In the Sinhalese language, we refer to this approach as “Sanghayana” where everyone participates, discusses, and returns with recommendations. This methodology aims to resolve government-related issues and streamline procedures in collaboration with the private sector. Lastly, regarding the local firms, we will provide assistance to competitive companies to improve their competitiveness. However, non-competitive local firms cannot expect special treatment. In the past, we focused heavily on the construction sector, providing BOI proposals and tax incentives. Our economy became overly reliant on concrete-related activities. While we support the growth of our construction and real estate firms, we also encourage other companies to come if they meet our standards. A level playing field is essential for development. By looking beyond our borders and adopting a unified policy, we can overcome the challenges we face. I won’t take any more of your time as you have other sessions and a lunch break. I extend my gratitude to all of you, and let’s follow up on these matters. Finally, I want to emphasize that we are preparing for the upcoming country assessment on anti-money laundering and countering the financing of terrorism. Sri Lanka recognizes the importance of addressing the identified gaps, strengthening our governance framework, and ensuring compliance. With the support and cooperation of all stakeholders, we strive for sustainable economic development and international cooperation.
Meanwhile, Mr. Kaushalya Navaratne, President, Bar Association of Sri Lanka addressing the gathering said, “The aim of this conference is to initiate a dialogue between the legal fraternity, policymakers, bureaucrats, and the business community. Recognizing the significance of both entrepreneurship and the rule of law, it is crucial for these sectors to understand each other’s importance for the nation’s prosperity.
To ensure a fruitful discussion, it is essential to involve the political leadership, and we appreciate the dedication of President Wickremesinghe in joining us for this event. The presence of senior judicial officers, policymakers, bureaucrats, lawyers, and corporate leaders will contribute to candid and open discussions.

The focus of the conversation should be on real problems and realities, aiming to find long-lasting solutions. With this in mind, let us commence the conversation and work towards a productive outcome.”
Addressing the gathering, Mr Faiszer Mustapha PC, Chairman NLC said, “Reflecting on the past 75 years since our independence, we acknowledge the initial optimism for Sri Lanka’s growth. However, the devastating impact of war and economic mismanagement has hindered our progress and led us to our current challenges. It is now our duty to rectify past mistakes and confront these obstacles.
We must begin by addressing our debt and engaging in debt restructuring to regain control of our economy. Business as usual is no longer an option; we must forge a new path towards efficient economic growth and sustainable development. This requires a deep understanding of the roles and responsibilities of the legal fraternity, judiciary, entrepreneurs, and guardians of the rule of law.
The business community plays a crucial role in job creation, wealth generation, and innovation. Without a thriving business sector, our nation’s advancement will be compromised. It is essential for the legal fraternity and judiciary to foster trust and collaboration with the business community, while businesses must uphold the rule of law and consider their social responsibilities beyond individual targets.”
Supreme Court Justice Priyantha Jayawardena PC said, “The significance of this conference cannot be understated, particularly in light of the unprecedented economic and financial challenges our nation is currently facing. It is our collective responsibility to strive for the betterment of our country and overcome this situation.

The fact that we have gathered here today is a testament to the shared interest we all have in this conference. Throughout the event, we will be focusing on important topics such as improving the ease of doing business, enhancing contract enforcement within a favourable legal framework, and related subjects.

It is crucial to note that Sri Lanka’s current rankings by the World Bank place us at 29th in the ease of doing business index and 164th in enforcing contracts. These rankings significantly influence investment decisions, making it imperative for us to address these parameters for the economic revival of our nation.”

Mr. M. Rajaram, Partner/Chairman, K&L Gates Straits Law LLC (Singapore); “Investors perceive Sri Lanka as an increasingly attractive destination for investments, as acknowledged in discussions held in Singapore, India, the UK, and the US. However, investors seek certain assurances and a level of comfort when considering investment opportunities. When disputes arise, investors prioritize two key factors: certainty of outcome and a fast resolution.

Drawing from Singapore’s experience, specialized judges and a case management system have been established to address different types of issues, aiming to resolve cases within 15 months in most instances. Additionally, modernization efforts, such as paperless filings and electronic hearings, have been implemented in Singaporean courts.
Despite being a small nation with limited natural resources and a smaller population compared to Sri Lanka, Singapore has successfully embraced these measures. Therefore, the suggestion is made to consider modernizing Sri Lanka’s court system using artificial intelligence (AI) and implementing strict case management controls.”
President’s Counsel Dr. K Kanag-Isvaran, President’s Counsel Dr. Faiz Mustapha, Central Bank Governor Dr. Nandalal Weerasinghe, Finance Ministry Secretary Mahinda Siriwardena, President’s Senior Adviser on Economic Affairs Dr. R.H. Samaratunga, attended the conference as panelists while President’s Counsel Mr. Chandaka Jayasundere moderated the panel discussion.
Attorney General Sanjay Rajaratnam, Mr. Ronald Perera PC, Chairman, Bank of Ceylon, Chairman, Sri Lanka, Insurance Corporation Mr. Thulci Aluwihare, Deputy Managing Director, CHEC Port City Colombo(Pvt) Ltd, Mrs. Nadeeja Tambiah, President- Head of Legal and Secretarial- John Keells Holdings, Mr. Mohamed Azmeer, CEO, Amana Bank PLC, Mr. Premalal Brahmanage, Chairman, Prime Group, Mr. Nirmal Cooke, Group Director Capital Maharaja Organization, Mr. Vinod Hirdaramani, Chairman, Hirdaramani Group, Mr. Asgi Akbarally, Executive Director, Akbar Brothers Group, Mr. Dipak Das, Managing Director, Lanka IOC PLC, Mr. Imal Fonseka, Chief Executive Officer, Richardson Group, Mr. Janaka Abeysinghe, Chief Executive Officer, Sri Lanka Telecom, Mr.Thushan Meemanage, Director, Scope Cinemas (Pvt) Limited and a distinguished group of Supreme Court judges and lawyers attended this event.

Colombo (LNW): India’s Union minister for port, shipping, water ways Sarbananda Sonowal today (05) flagged off India’s first cruise ship to Sri Lanka from Chennai Port, Times of India reported.

The luxury cruise ship named Cordelia Empress will reach the Hambantota Port on June 7, and is set to sail to Trincomalee and dock there for a day before sailing back to Chennai on June 9, the report said.

The ship features a luxury shopping area, pubs, a swimming pool, a food court, a casino, a play area, spas, theatres and others.

Addressing a gathering on the ship, the minister said, “It’s the vision of India’s Prime Minister Narendra Modi to promote cruise tourism in our country. The initiatives taken by the Chennai Port Authority and the Tamil Nadu government’s tourism department are praiseworthy.”

He said the Union government has started building international cruise terminals in Mumbai at Rs 5,000 crore. “It will be ready soon,” he said.

Cordelia CEO Jurgen Bailom said the ship would carry 50,000 passengers from India to Sri Lanka in the next four months.

Cordelia is operating cruises to Kochi, Goa, Mumbai and Lakshadweep.

Source: Times of India

        High Commission of India, Colombo is organising a Special Exhibition on India’s rich Buddhist Heritage as a part of the Homagama Poson Zone from 3-4 June 2023. The Exhibition was inaugurated by Minister of Transport and Highways and Minister of Mass Media, Hon. Bandula Gunawardana, in the presence of members of several dignitaries including members of the diplomatic corps.

2.     The Exhibition showcases a series of photographs depicting some of the prominent Buddhist pilgrimage sites in India including Dhamek Stupa in Uttar Pradesh, Mahabodhi Temple and the Ashoka Pillar in Bihar, Sanchi Stupa in Madhya Pradesh. Photographs of over centuries-old sculptures and carvings are also exhibited.

3.     A special attraction of the Exhibition is a lantern depicting the arrival of Arahat Mahinda to Sri Lanka on one of its panels. The other panels depict the strong linkages between the four virtues of Buddhism i.e Metta, Karuna, Mudita and Upekka and the theme of India’s ongoing Presidency of the G20 i.e. One Earth, One Family, One Future.

4.     The festival marking the arrival of Arahat Mahinda to Sri Lanka with the teachings of Buddhism from India, commemorates the age-old ties between India and Sri Lanka. In order to further this civilisational connect, Prime Minister, Shri Narendra Modi had announced a special grant of USD 15 million for promotion of Buddhist ties. Work is underway to carry out solar electrification of hundreds of temples across Sri Lanka under this grant. Last month as a part of the sacred Vesak Festival, High Commission of India had organised a Special Exhibition at Seemamalakaya, Gangaramaya Temple in Colombo.

***

Colombo

4 June 2023

By: Isuru Parakrama

Colombo (LNW): The official exchange rate list of the Central Bank of Sri Lanka reveals a slight appreciation in the Sri Lankan Rupee against the US Dollar today (05).

The buying price of the US Dollar has dropped to Rs. 285.61 from Rs. 287.42, and the selling price to Rs. 298.85 from Rs. 300.32.

The Sri Lankan Rupee had slightly depreciated against the US Dollar last week, but indicates an appreciation this week. it also indicates appreciation against several other foreign currencies as well.

The Sri Lankan Rupee, however, indicates slight depreciation against Gulf currencies.

By: Lee Ying Shan

CNBC: Oil prices rose following OPEC kingpin Saudi Arabia’s decision to cut production by another million barrels per day.

On Sunday, the Organization of the Petroleum Exporting Countries and its partners (known as OPEC+) made no changes to its planned oil production cuts for the rest of the year. However, the world’s top oil exporter Saudi Arabia announced further voluntary output cuts which will be implemented from July.

The kingdom’s output will decline to 9 million barrels per day from around 10 million barrels in May, Saudi’s energy ministry said in a statement.

Both benchmarks rose more than 2% on Monday during early Asia trade but dipped lower by mid-morning. Global benchmark Brent futures were last trading up 1.43% at $77.22 a barrel, while U.S. West Texas Intermediate futures rose 1.5% to $72.86 per barrel. OPEC+ pumps approximately 40% of the world’s crude and production decisions can have a significant impact on prices.

On April 3, several producers of the oil cartel had revealed a combined 1.66 million barrels per day of production declines until the end of this year. And many market watchers, including analysts at Goldman Sachs, had expected the alliance to keep output unchanged this time around.

“The market did not widely expect the Saudi decision to cut production by 1 million barrels per day unilaterally,” the president of analysis firm Rapidan Energy, Bob McNally, told CNBC in an e-mail following the decision.

“It once again demonstrated that Saudi Arabia is willing to act unilaterally to stabilize oil prices,” McNally said, citing the example of January 2021 when the oil titan unilaterally cut by production by 1 million barrels per day.

“We see large global deficits materializing in the second half of 2023 and crude prices exceeding $100 next year,” he added.

Similarly, Kang Wu, head of global demand and Asia Analytics at S&P Global Commodity Insights, estimates that the significant rise of global oil demand in the Northern Hemisphere’s summer season will lead to an oil inventory draw and “support higher oil prices” over the coming months.

RBC Capital Markets’ Managing Director Helima Croft noted that while some market participants will focus on the fact that Saudi Arabia slashed its output independently, its actions lends to the integrity of the cuts.

“The fact that [Saudi Arabia] is willing to shoulder it alone adds to the credibility of the cut and signals real barrels coming off the market,” Croft wrote in a research report. However, others have not viewed the kingdom’s move with that much optimism.

‘Ultimate failure’

This weekend marked an “ultimate failure of the Saudis” to marshal together all the OPEC+ members to undertake “what was required to bring better prices into the market,” said Ed Morse, Citi’s global head of commodities research and managing director.

Morse told CNBC’s “Squawk Box Asia” Monday that it’s still “an extremely weak” oil market in part due to disappointing demand in the three largest consuming regions: China, the European Union and the United States.

“We have a potential for supply to be a lot bigger than where demand growth is going,” he said, citing the potential of a recession on the horizon. “There is no guarantee that [oil prices] won’t go below $70,” he said.

Commonwealth Bank of Australia is of the view that Saudi Arabia will extend July’s production cuts if Brent futures remain in the $70 to $75 per barrel range, or even drop below that. “We think Saudi Arabia will look to deepen production cuts if Brent futures sustainably drop below $US70/bbl,” CBA’s Vivek Dhar wrote in a research note Monday.

Source: CNBC News