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Local Commercial Banks reluctant to restructure domestic debt,

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By: Staff Writer

Colombo (LNW):Sri Lanka is eying options to re-structure domestic debt, or local law local currency debt (LLLC), without harming the banking sector and announcing them, the International Monetary Fund said in a report.

Local Law Local Currency Debt is held by the banks, pension funds, individuals and the central bank. Sri Lanka has to restructure debt to meet a ceiling on debt-rollovers and new deficits called the gross financing need from 2027, which has been set at 13 percent of GDP (from 30-pct in 2022).

Foreign debt service has to be 4.5 percent of GDP or below.“The authorities and their financial advisors are weighing different options and their associated legal procedures to optimize the design of an LLLC debt treatment while preserving financial stability,” the IMF said in a statement.

Sri Lanka’s plan for a voluntary restructuring of its domestic debt is finding few takers from local banks worried about a hit to their capital, raising the risk of a delay in the country’s financial rescue.

Some of the nation’s biggest lenders including Commercial Bank of Ceylon Plc. and Hatton National Bank Plc warn that a local debt restructuring will lead to capital impairment as banks are forced to set aside more money to cover losses.

“Already the banking sector is taking a toll on haircuts on dollar bonds,” said Sanath Manatunge, chief executive officer at Commercial Bank of Ceylon. “For liquidity and statutory reasons, we have to have some bills and bonds. If that is also going to be subject to a haircut, then the industry might lose its resilience.”

The country’s biggest challenge after securing a $3 billion bailout from the International Monetary Fund in March is to reach a restructuring deal with creditors that would make its debt sustainable in the eyes of the Washington-based lender.

Banks’ reluctance to participate in a domestic-debt restructuring could complicate the process, which authorities hope to conclude before the first IMF review slated for September.

Authorities agreed to include local-currency bonds in the restructuring program as they sought to appease overseas investors who are demanding that domestic debt holders should also share billions of dollars of losses.

Sri Lanka’s external borrowings totaled $41 billion, while its local currency debt stood at around $38 billion in 2022, according to the IMF.

Sri Lankan lenders’ capital buffers are already depleted and if they are further affected by debt restructuring, that would make raising fresh funds harder, Aruni Goonetilleke, chairperson of Hatton National Bank, said at an Asian Development Bank event earlier this month.

Only Treasury bills held by the central bank, which owns about two-thirds of the nation’s around $11.4 billion in securities are currently included in the debt treatment, officials have said.

Sri Lanka also has $24 billion worth of T-bonds, most of which are held by domestic banks and local retirement funds and are subject to voluntary restructuring.

One way to push through the debt overhaul would be to restructure bonds held by the nation’s Superannuation funds, provided their cash flow can be serviced, said Suhini Fernando, chief executive of Reliance Capital (Pvt) Ltd., a Colombo-based investment consultancy.

Sri Lanka to build South Asia’s largest logistics complex at Colombo Port

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By: Staff Writer

Colombo (LNW): The largest commercial and logistics complex in South Asia is to come up in the Port of Colombo with an investment of US$ 392 million.

Agreements for the construction and operation of the South Asia Commercial and Logistics Hub (SACL) as a 50-year Build Operate-Transfer (BOT) project were formally signed in Colombo by the representatives of the three investing entities.

Accordingly, China Merchants Port Holdings (CMPort) holds a 70% stake while Sri Lanka Ports Authority (SLPA) and Access Engineering PLC (Access) each hold a 15% stake in the venture/

A Public Private Partnership (PPP) project, the South Asia Commercial and Logistics will be built in the centre of the Colombo Port and will have 530,000 CBM of storage capacity via an eight-floor building.

The investment in the project is expected to bring in much-needed foreign investment into Sri Lanka.The construction of the complex is expected to begin in the second half of 2023 with a target of completion by the end of 2025.

Adjacent to Port City and the CBD, it will be directly linked with the airport via the Port Access Elevated Highway.

The five million square foot complex will offer the full gamut of logistics related facilities and services such as Less than Container Load (LCL), Multi-Country Consolidation (MCC), Container Freight Station (CFS), general warehousing and various other value-added services.

A Spokesperson for CMPort said the project will result in an infusion of US$ 126 million in addition to an upfront payment of US$ 26 million after the agreement is signed.

The project is also expected to provide direct employment to a minimum of 1,800 people and create 10,500 other indirect job opportunities.

The project aligns with Sri Lanka’s national development strategy to transform the country into a major logistics centre, identified as a key sector and a driving force for economic development in the National Policy Framework (NPF) 2019.

It will provide better logistics and warehousing facilities and services, enhancing the Port’s competitive advantage and consequently strengthening its Hub status.

The project will also improve the operational efficiency of the Port of Colombo and introduce leading-edge technology and innovation.

The Port of Colombo is currently ranked among the top 13 ports in the world in terms of shipping network connectivity.

Despite its ideal location on the international trading route, the Port still lacks a modern, state-of-the-art logistics facility, the Spokesperson said.

At present, mainly loading and discharging of cargo is done at the Port of Colombo, with little value-added services being offered. SACL will change this landscape.

Additionally, since the Port of Colombo was declared as a Freeport by the Government of Sri Lanka, the project will enjoy the associated Freeport advantages in its operations, such as no customs clearance for transshipment and MCC cargo, resulting in reduced paperwork and associated costs.

The project also provides an ideal platform for the registration of hub companies – which will enjoy tax concessions in CIT, WHT, VAT, etc.

The project is expected to help the Port of Colombo to strengthen its competitiveness against other competing ports in the region.

Furthermore, the improved services and cost benefits provided by the project are expected to attract more business and container volumes to the Port of Colombo, benefiting all its terminals and generating higher revenues for the Port and port-related companies in Sri Lanka.

Sri Lankans fall prey to Thailand job scams help families survive in crisis

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By: Staff Writer

Colombo (LNW): Organised groups are now operating a job scam of sending Sri Lankans fed up with the country’s economic crisis along the human trafficking pipeline to Laos as a large number of qualified and experienced youths are increasingly desperate to go abroad.

Loas is an independent republic, and the only landlocked nation in Southeast Asia, northeast of Thailand, west of Vietnam.

With the sole aim of making money and helping their families survive hyperinflation through heftier remittances, these young men and women are falling prey to the employment racket both here and in Thailand.

While one group is based in Laos, those staying in the same apartment compound are responsible for handling the Sri Lankans there. Another group is based in Sri Lanka and they approach individuals, brainwash them, prepare their travel documents and drop them at the airport.

The ongoing economic crisis in Sri Lanka has hampered job prospects fot youths and thus, when they hear about lucrative pay packets of US$1,000 a month at an IT job in Thailand, they are used to jumping at the chance.

When they realize that their job would be to flirt with well-to-do Americans online in an organised crypto-currency scamming network handled by East Asian syndicates in Laos.

The Special Investigation Division of the Sri Lanka Foreign Employment Bureau (SLFEB) revealed these details to warn Sri Lankans about Thailand job scam requesting them not to dupe them by lucrative job offers.

Sri Lanka Mission in Thailand has raised concerns about Sri Lankan nationals being lured for employment in Thailand, particularly for positions in Information to Laos in Thailand Information Technology (IT) sector by dubious tech firms involved in call-centre scams and cryptocurrency fraud.

It has noticed recently that Sri Lankan nationals are being lured for employment in Thailand particularly for the positions in the Information Technology (IT) sector by dubious IT firms involved in call-centre scams and crypto currency fraud.

Victims are illegally taken across the border from Thailand mostly into Myanmar and held captive to work under harsh restrictive conditions. Some of the victims have also been apprehended by authorities for illegal entry.

All these victimized Sri Lankans have arrived in Thailand on tourist visas, promising to convert the same to work visas after arrival, which has not been successful.

Sri Lankan nationals are therefore advised not to get enticed and entrapped in such fraudulent job offers and are requested to exercise extreme caution and verify the background of recruiting agents as well as any company before taking up any job offer.

Sri Lankan nationals are therefore advised not to get enticed and entrapped in such fraudulent job offers and are requested to exercise extreme caution and verify the background of recruiting agents as well as any company before taking up any job offer.

The Sri Lanka Mission urged Sri Lankans to obtain Thai visa details from the Thai Immigration Bureau website via www.immigration.go.th.

Sri Lanka Original Narrative Summary: 22/04

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  1. President Ranil Wickremesinghe says this year’s Ramadan festival is being celebrated by the devotees of Islam in “a revived environment in the country”; adds this has brought contentment to the nation in its entirety; expresses confidence that this year’s Ramadan will serve to unify all Sri Lankans irrespective of race and religion, in working towards the common goal of developing a robust and equitable society, which upholds the values of freedom and human dignity.
  2. President Ranil Wickremesinghe highlights the need for a strong, export-oriented economy; urges private sector to become engines of growth in SL’s economy; calls for the private sector to submit proposals in this regard; stresses the need for modernising and updating traditional sectors such as agriculture, fisheries, logistics, and tourism.
  3. Agriculture Ministry Secretary Gunadasa Samarasinghe assures China’s request “to import 100,000 toque macaque monkeys from Sri Lanka”, despite protests from many environmentalists against the deal; asserts a “privately-owned animal breeding Chinese company, connected to zoological gardens, had made the request”: The Chinese Embassy in Sri Lanka maintains a diplomatic denial on such business.
  4. Archbishop of Colombo HE Malcolm Cardinal Ranjith says he has “no faith in the country’s leadership in securing justice for Easter Attacks victims”: adds “although on the surface it looks like Islamic extremists carried out these attacks, the Parliament Select Committee report clearly states that a political conspiracy was behind it.”
  5. US Ambassador to Sri Lanka Julie Chung joins Sri Lankans to remember those killed in the 2019 April 21 Easter attacks; says she “remembers the hundreds of innocent people, including five Americans, who were murdered four years ago in a horrific act of terror on Easter Sunday”; adds the US honours the victims, their families and all affected communities and stands in solidarity with those awaiting justice.
  6. The government is set to further ease import restrictions imposed as a remedy to crippling shortage of foreign exchange: Finance State Minister Ranjith Siyambalapitiya says measures will be taken to “relax the import restrictions imposed on many other goods”; admits the main cause for the loss of revenue was the import restrictions imposed by the government.
  7. The Examination Department says the preliminary marking of the G.C.E. Advanced Level Tamil medium answer scripts has commenced: Commissioner General of Exams Amith Jayasundara says the paper marking activities have commenced in relation to subjects of Hinduism, Christianity, Hindu Civilization, Bharatha Dancing, Oriental Music, Carnatic Music, Western Music, Art, Drama and Theatre and Hindi.
  8. A dismissal ceremony conducted for 189 sub-inspectors who had completed their training at the Katukurunda Police Training College, under the patronage of Public Security Minister Tiran Alles: Of the 189 sub-inspectors, 167 dismissed from service, while 22 dispersed.
  9. The Maritime Rescue Coordination Centre Colombo stationed at the SL Navy HQ promptly coordinates the rescue of a group of Sri Lankans reported to be in distress on-board a Vietnamese-flagged fishing vessel in Vietnam waters: The group was temporarily settled in Vietnam upon rescuing: Among the distressed were 151 Sri Lankans deported from Vietnam in 2022, and 23 more Sri Lankans deported in April, 2023.
  10. Sports Minister Roshan Ranasinghe expected to hold Sri Lanka Rugby (SLR) election in August; promises that the election will be held after successful discussion with the Asian Rugby Union President Qais Al Dalal; assures the Asian Rugby chief is happy about the ministry’s proposals for SLR development.

Sri Lanka and China Sign USD 400 Million Agreement to Build South Asia’s Largest Commercial and Logistics Hub

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Yesterday, an agreement worth USD 400 million was signed between China Merchants Port Holdings Co. Ltd. (70%), Sri Lanka Ports Authority (15%), and Access Engineering PLC (15%) to build South Asia’s largest commercial and logistics hub at the center of Colombo Harbour. The eight-floor complex, 92 meters in height, will be constructed under a Public-Private Partnership with a concession period of 50 years.

The project is aimed at making Sri Lanka a major logistics hub in the region and aligns with the country’s national development strategy. It is identified as a key sector and driving force for economic development in the National Policy Framework (NPF) 2019. The construction of the project will commence in two months and is expected to be completed in two years.

“The investment in the project will bring in much-needed foreign investment into Sri Lanka,” said Ports, Shipping, and Aviation Minister Nimal Siripala De Silva. “Sri Lanka’s aspiration to become a major logistics hub in the region too would receive another boost with the launch of this project.”

Sri Lanka Ports Authority Chairman Keith Bernard said that the project will provide direct employment to a minimum of 1,800 people and create 10,500 other indirect job opportunities. Additionally, the complex will be directly linked with the airport via the Port Access Elevated Highway. The five million square foot complex will offer the full range of logistics-related facilities and services such as Less than Container Load (LCL), Multi-Country Consolidation (MCC), Container Freight Station (CFS), General warehousing, and various other value-added services.

The project aims to improve the operational efficiency of the Port of Colombo and introduce leading-edge technology and innovation. It will also provide better logistics and warehousing facilities and services, enhancing the port’s competitive advantage and consequently strengthening its hub status. The Port of Colombo is currently ranked among the top 13 ports in the world in terms of shipping.

The investment is a clear indication of the investor appetite for Sri Lanka despite the ongoing economic crisis. The project will bring in much-needed foreign investment into Sri Lanka and bolster its position as a major logistics center in the region.

Weather Alert: Heavy Rains Expected Today

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Showers or thundershowers will occur at several places in Eastern, Uva, Northern, North-central, Sabaragamuwa and Central provinces during the afternoon or night. Fairly heavy showers above 75mm are likely at some places.

Showers or thundershowers will occur at a few places in elsewhere during the afternoon or night.

Showers may occur in the Western province during the morning too.

General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers

Ramazan Message from the President

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Following the completion of fasting for one month, this year’s Ramazan festival is being celebrated by the devotees of Islam in a revived environment in the country. Undoubtedly this has brought contentment to the nation in its entirety.

The Eid festival holds significant religious, spiritual and social importance, as the Muslim community strives to uphold the core values through their unwavering dedication to the doctrinal practices.

This month of abstinence is not only an opportunity for individuals to fulfil their hallowed duties, but is also an important message to the world on promoting generosity and equality to the wider society, underlining the importance of social values.

These principles of social responsibility are in tandem with the ideals the Government envisions to achieve in building a more peaceful and developed Sri Lanka, through solidarity and brotherhood. It is incumbent upon all of us to draw upon the teachings of the Holy Quran and adhere to these principles for the betterment of our society.

I am confident that this year’s Ramazan celebration, will serve to unify all Sri Lankans irrespective of race and religion, in working towards our common goal of developing a robust and equitable society, which upholds the values of freedom and human dignity.

I extend a prosperous and peaceful Ramazan celebration to all Sri Lankan Muslims here and abroad, and their brethren worldwide.

Happy Eid al-Fitr!

Ranil Wickremesinghe

President

Democratic Socialist Republic of Sri Lanka

Muslims in Sri Lanka to celebrate Eid al-Fitr today

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Muslims in Sri Lanka celebrate Eid al-Fitr on today, Saturday, 22 April 2023, marking the end of the Holy Month of Ramazan and the commencement of the month of Shawwal. This announcement was made by the All Ceylon Jamiyyathul Ulama (ACJU) after the Hilaal (Crescent) of the Month of Shawwaal 1444 AH was sighted on Friday, 21 April 2023, as per the reports of the Hilaal Subcommittees appointed around the country.

The Colombo Grand Mosque, ACJU Hilaal Division, and the Department of Muslim Religious and Cultural Affairs unanimously declared that the 1st of Shawwaal 1444 is on 22 April 2023. This decision was made after careful consideration and consultation with experts.

Eid al-Fitr is an important religious festival celebrated by Muslims worldwide. It marks the end of the Holy Month of Ramazan, during which Muslims fast from dawn until dusk. The festival is a time for prayer, feasting, and spending time with family and friends.

Lanka News Web wishes all Muslims in Sri Lanka a blessed and joyous Eid al-Fitr. Eid Mubarak!

DP Education Establishes a Branch of DP Coding School at Dambana Vidyalaya(VIDEO)

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DP Coding School program recently established a branch at Dambana Vidyalaya to provide computer language education to tribal children. This initiative aims to give them access to various job opportunities in the computer field, including software engineering careers.

Around 60 tab devices were provided to the school, giving approximately 300 children the chance to study computer languages. The Dhammika and Priscilla Perera Foundation’s DP Coding School program offers a basic foundation course that is free of charge and can be completed online. Children who complete this course are eligible to join the Trainee Full Stack Developer course at the University of Moratuwa.

The establishment of a DP Coding School branch in Dambana Vidyalaya was welcomed by Uruvarige Vannilattan, the tribal leader of the area. He expressed gratitude for the opportunity given to the indigenous children of remote Dambana, providing them with the skills and knowledge necessary to excel in the digital world.

Parents who are interested in enrolling their children in this coding course can do so from the comfort of their homes by visiting the dpcode.lk website. The course, worth 24 lakh rupees, is entirely free of charge.

The DP Education’s DP Coding School program aims to make computer language education accessible to children across the nation, giving them the tools and skills to secure successful careers in the tech industry.

Public Security Minister Chairs Dispersal Ceremony for 189 Sub-Inspectors

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Under the chairmanship of Sri Lanka’s Minister of Public Security, Mr. Tiran Alles, a dispersal ceremony was conducted on April 20, 2023, for 189 sub-inspectors who had completed their training at the Katukurunda Police Training College. Of the 189 sub-inspectors, 167 were male sub-inspectors, while 22 were women sub-inspectors.

During the ceremony, Minister Alles emphasized the importance of the new police officers’ responsibility to contribute to peace in the country and to avoid becoming victims of corrupt individuals during their careers.

The Minister acknowledged that challenges would arise in the officers’ careers, particularly when dealing with individuals involved in the underworld and drug-related activities. He warned the sub-inspectors to never become victims of such individuals and to remain vigilant and focused on their duties.

He also acknowledged that corrupt individuals could be found in any institution, including the police, armed forces, or government institutions. Minister Alles urged the new officers to remain steadfast and avoid falling victim to corrupt practices.

He went on to invite the newly-dismissed sub-inspectors to participate in the government’s programs aimed at eliminating drugs and the underworld in the country.

The dispersal ceremony was conducted with the goal of ensuring that only qualified and dedicated individuals serve in the Sri Lankan police force. The government’s efforts to root out corruption and maintain law and order in the country are ongoing, and the dismissal of the 189 sub-inspectors is just one step in this process.