On August 25, the Sri Lankan Rupee maintained its stability against the US Dollar at commercial banks within Sri Lanka, consistent with the rates observed on the previous day.
At Peoples Bank, the buying and selling rates for the US Dollar remained consistent at Rs. 315.56 and Rs. 330.38, respectively.
According to Commercial Bank, the buying rate for the US Dollar experienced a slight decrease, moving from Rs. 315.70 to Rs. 314.73, while the selling rate remained unchanged at Rs. 328.
At Sampath Bank, the buying and selling rates for the US Dollar remained steady at Rs. 317 and Rs. 328, respectively.
Colombo (LNW): This week’s Treasury bill auction saw weighted average rates increasing across the board, breaking the trend of a four-week streak of continuous declines. The increases were registered at 42, 16 and 12 basis points on the 91-day, 182-day and 364-day maturities respectively to record weighted averages of 17.97%, 15.03% and 13.31%.
A total of Rs. 124.79 billion was accepted as against a total offered volume of Rs. 130 billion at the 1st phase of the auction, while an additional amount of Rs. 15.85 billion was raised at the 2nd phase of the auction. Given below are the details of the 1st phase of the auction.
The secondary bond market saw an increase in activity levels ahead of the Monetary Policy Announcement due today at 7.30 a.m.
The Central Bank of Sri Lanka was seen reducing its Standard Deposit Facility Rate (SDFR) and Standard Lending Facility Rate (SLFR) by 200 basis points at its previous announcement on 5 July.
Trades were seen on the liquid maturities of 01.07.25, 15.09.27, 01.05.28 and 15.05.30 as it changed hands at levels of 13.65% to 13.75%, 13.02% to 13.20%, 12.75% to 12.90% and 12.50% respectively.
The total secondary market Treasury bond/bill transacted volume for 22 August was Rs. 15.88 billion.
In money markets, the DOD (Domestic Operations Department) of Central Bank inject liquidity by way of an overnight reverse repo auction for a volume of Rs. 102.85 billion at a weighted average rate of 11.51%.
A sum of Rs. 60.09 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00%. The net liquidity deficit stood at Rs. 162.94 billion yesterday.
The weighted average rates on overnight call money and repo were registered at 11.54% and 12.00% respectively.
In the Forex market, the USD/LKR rate on spot contracts traded within the range of Rs. 324.00 to Rs. 324.75 yesterday before closing the day at Rs. 324.00/324.25. The total USD/LKR traded volume for 22 August was $ 38.20 million.
Former US President Donald Trump was released on bond after undergoing the booking process at the Fulton County jail in Atlanta, as reported by CNN. He was arrested and booked at the jail on charges related to the Georgia election subversion case.
Trump’s time at the jail lasted approximately 20 minutes. Following his release, he addressed reporters, stating, “I did nothing wrong.” He characterized the criminal case against him as a “travesty of justice” and asserted his right to challenge what he believes to be a dishonest election.
To secure his release, Trump agreed to a USD 200,000 bond along with certain conditions negotiated by his attorneys. These conditions include refraining from using social media to intimidate co-defendants or witnesses in the case. Trump covered the cost of the bond by contributing 10 percent and working with a local bonding company, Foster Bail Bonds LLC.
Notably, Fulton County marks the first case where Trump has had to pay a cash bail. His chances of being released without cash bail were slim in Georgia, given that he was already facing multiple felony indictments in the state.
Protestors gathered outside the jail, chanting slogans against District Attorney Fani Willis, who had charged Trump and 18 others in the election subversion case. Security was heightened around the jail, with more than ten agencies from the Metro Atlanta area present. Canine units and drones were deployed to ensure security.
Fulton County District Attorney Fani Willis had given Trump and his co-defendants a deadline to voluntarily surrender. The charges against Trump and others were part of a 41-count indictment focused on racketeering charges. This marks the fourth set of criminal charges that Trump faces.
Colombo (LNW): Sri Lanka is to promote domestic grape cultivation as it receives support by the expertise of farmers, Agriculture Minister Mahinda Amaraweera has said.
A vineyard started by J G M Bandara in the Uva – Paranagama region has been successful, prompting a visit by the Agriculture Minister.
As Sri Lanka annually spends a lot of foreign exchange to import grapes, Minister Amaraweera was quoted as saying in a statement posted on the state information office facebook.com page.
A program to promote the cultivation of grapes will be developed backed by the expertise of local farmers he added.
The Duch introduced grape cultivation to Sri Lanka two centuries ago. While grapes are grown in other areas, Jaffna is the only one that cultivates them commercially.
There are around 800 grape growers in Jaffna cultivating it in more than 100 hectares and more farmers are joining in due to its commercial value.
Many economic programs are developed in Sri Lanka due to foreign exchange shortages created by the central bank.
The country has high import duties on foods, malnutrition and stunting of young children. Many basic foods including rice, maize are taxed to give protected producers high profits and trade restrictions worsen from time to time as money is printed to boost growth.
Sri Lanka’s inflationist macro-economic elite have resided moving to a consistent monetary regime like a clean float or hard peg, according to critics.
The Dambulla Economic Centre Traders Association said , while the quantity of vegetables from the Jaffna Peninsula was increasing and that a large quantity of grapes grown in Jaffna was being brought into the Centre.
They said in the last few days, they received grapes from Jaffna priced between Rs 1,300 and 1,350 per kilogramme and that with the increase in quantity, the price of grapes had dropped to Rs 900 per kilogramme.
Traders note that because of the low production in other areas there was a high demand for Jaffna grapes.
The Dambulla Economic Centre traders point out that the grape harvest comes in small packages from Jaffna at around 4 a.m., and traders from almost every area in the island come to Dambulla to buy the stock of Jaffna grapes.
Grape cultivators in Jaffna are in for good times as their produce will be made sweeter with new pruning and cultivation methods that will be introduced by agricultural research officers. The sourness of grapes has been a major drawback to grapevine farmers making a living off the crop.
Buddhika Pathirana, Member of Parliament for Matara District under the Samagi Jana Balawegaya (SJB), raised an alarming issue in Parliament on the 23rd, revealing the discovery of counterfeit liquor bottle stickers in over a hundred bars across the nation. These fraudulent stickers were detected in various locations, including Jaffna, Nuwara Eliya, Galle, and Ratnapura, with their origin traced back to a location in the Gampaha district.
MP Pathirana addressed the Finance Minister with his concerns regarding the counterfeit stickers and their widespread use. He emphasized that the issue extends to multiple districts and pointed out a specific address associated with the distribution of these fake stickers.
Drawing historical context into the matter, Pathirana referenced previous incidents involving individuals allegedly connected to the distribution of counterfeit stickers. He urged the State Minister to initiate a thorough investigation into the issue, considering both past and present circumstances, and expressed the importance of holding responsible parties accountable.
In response, Finance State Minister Dr. Ranjith Siyambalapitiya acknowledged the gravity of the situation. He assured Parliament that the counterfeit stickers have been submitted to the Government Analyst for investigation. The State Minister made a commitment to take stringent action against all parties involved, regardless of their rank or position.
Dr. Siyambalapitiya highlighted that the introduction of the sticker system in 2016 aimed to curtail the evasion of liquor taxes by licensed companies. He noted that this system contributed to a significant increase in excise revenue in 2021 compared to the previous year, amounting to Rs. 19 billion. Additionally, he mentioned that alcohol production witnessed an 11 percent upswing.
In a recent parliamentary session on the 24th, Rohini Kaviratne, Member of Parliament from the Matale district representing the SJB, voiced her concern about the recruitment of teachers and its impact on education quality. She lamented the inability to hire teachers despite available funds within Provincial Councils.
Kaviratne noted that although a Cabinet paper was issued to facilitate teacher recruitment by Provincial Councils, the execution of this plan has encountered difficulties. She emphasized the urgency of addressing this issue, as time lost in the education of children cannot be regained.
Highlighting the repercussions of prolonged legal battles against the hiring of principals and teachers, the MP stressed the critical role that teachers play in students’ academic development. She expressed concern for the children who have missed out on school for two years due to various disruptions, asserting that their education has been severely affected.
Kaviratne questioned the prioritization of salary cuts for educators compared to other officials within the Ministry. She also criticized a circular issued by the Central Province’s Director of Education, which suspended salary increases for principals if Ordinary Level exam results were low. She called on the Education Minister to promptly address this issue.
With 5,878 teacher vacancies in the Central Province alone, the MP shed light on the challenges faced by schools in maintaining high educational standards. She pointed out that achieving the expected results in O/L and Advanced Level exams becomes increasingly difficult when teacher vacancies remain unfilled.
Furthermore, Kaviratne raised concerns about the complex set of responsibilities shouldered by principals and teachers, beyond simply improving exam results. She stressed that educational goals should be pursued collectively by teachers, principals, Ministry officials, and the Minister for Education. Collaboration and focus on comprehensive development were deemed crucial to ensure the overall betterment of the education system.
Indian External Affairs Minister S Jaishankar expresses hope for a reconciliation process that addresses the aspirations of the minority Tamil community in Sri Lanka for equality, justice and self-respect: highlights the implementation of the 13 Amendment to the Constitution to achieve the objective: reiterates India’s support for the preservation of Sri Lanka’s multi-ethnic, multi-lingual, and multi-religious identity.
Top analysts point out that out of 14 countries that carried out domestic debt restructuring in the last 25 years, Sri Lanka stands alone in targeting pension funds while excluding banks and private creditors: analysts also point out that, based on the CBSL’s own Provident Fund Interest Rate of 29% credited to the CBSL staff in 2022, the EPF Members have suffered a phenomenal loss of 20% of their balances as they are to be credited with only 9% as per the Monetary Board’s recommendation.
The Joint Apparel Association Forum (JAAF) says the apparel sector is continuing to undergo distress and has now begun to lose its market share to competing nations: apparel exports in July’23 decline 23% YOY to USD 401mn: cumulatively, for the 7 months – January to July 2023, apparel exports down a massive 19% to USD 2.7 bn.
Netherland’s State Secretary for Culture and Media Gunay Uslu to visit Sri Lanka on August 23 to sign the legal document to return the cultural artifacts that were pillaged from Sri Lanka: the objects to include the famous Lewke’s canon, 2 Gold kastanes (ceremonial swords), Singhalese knives, Silver kastane and 2 guns.
Western Province Senior Police DIG Deshabandu Tennakoon says Police have launched a special crack-down to completely control organized crimes in the country within the next 6 months.
Monetary Board imposes caps on lending interest rates on pawning facilities at 18%, on pre-arranged temporary overdrafts at 23%, & on credit cards at 28%: analysts however point out that the Govt is still paying nearly 18% on its own borrowings in Treasury Bills.
President Ranil Wickremesinghe extends his congratulations to the Indian PM Narendra Modi and the people of India, on the achievement of Chandrayaan-3’s successful soft landing on the lunar South Pole for the 1st time in history.
Opposition Leader Sajith Premadasa says Sri Lanka had spent USD 320 mn for the launch of SupremeSAT in 2012, while India had spent only USD 263 mn for the entire Chandrayaan programme: urges the Govt to submit a report regarding the massive expenditure on SupremeSAT project: Leader of the House Susil Premajayantha says he was the Minister of Science, Technology and Research from 2015 to 2018, and that he was unaware of such a satellite being launched in Sri Lanka.
Minister of Power and Energy Kanchana Wijesekera says a Forensic audit is to be conducted on the fuel distribution scam that had taken place in 2022, using duplicate invoices.
Parliament’s Sectoral Oversight Committee on Energy and Transport learns that more than 90% of vehicles running in Sri Lanka are not upto the proper smoke emission standards: also learns that 20% of vehicles fail the smoke emission test annually.
In a recent session of Parliament, Education Minister Dr. Susil Premajayantha addressed concerns regarding the recruitment of Principals and teachers in schools. He highlighted that a six-month interim order has led to difficulties in the recruitment process, causing injustices to children’s education. The Minister was responding to questions raised by SJB MP Rohini Kumari Wijeratne.
Dr. Premajayantha emphasized the need for a time limit on interim orders, suggesting that amendments to the Civil Procedure Code are necessary to rectify this issue. He urged the Minister of Justice to consider adjusting the Code of Civil Procedure to specify the validity period of interim orders. He expressed concern that some individuals attempt to extend interim orders indefinitely, leading to disruptions in educational operations.
The Minister underscored the seriousness of the violation of children’s right to education due to these legal disputes. He compared cases related to the recruitment of teachers and principals to land cases, noting that the impact on children’s education is distinctively significant.
Regarding teacher vacancies, Dr. Premajayantha disclosed that there are currently 32,000 vacant positions. He mentioned that three years ago, 22,000 individuals were recruited as teachers without proper transparency during the recruitment of development officers to the public service. These appointments lacked a proper system and training. Subsequently, legal challenges emerged when efforts were made to provide formal teacher education to these appointees. The resulting interim orders have impeded the recruitment process, affecting children’s access to education.
Dr. Premajayantha conveyed that Provincial Councils will soon gain authority to appoint graduates to replace retired and departing teachers. This move aims to address the shortage of educators in schools. The Minister assured that despite obstacles, steps will be taken to ensure an adequate number of teachers for children, particularly in subjects like science, technology, and English.
He also highlighted the impact of inappropriate teacher assignments on education quality. For instance, assigning an individual with a degree in archaeology to teach in the primary section of a school could undermine the formal education structure. He noted that both the informal teacher placement and the effects of the ongoing pandemic have disrupted education activities in primary sections.
Additionally, the Minister brought attention to a circular issued by the Central Provincial Education Director, which suspended annual salary increases for Principals who fail to achieve a 90 percent pass rate in the GCE Ordinary Level examination. Dr. Premajayantha asserted that policy decisions related to education are the purview of the Ministry of Education, and while provincial education directors can handle administrative matters, they should not make such decisions unilaterally. He emphasized the importance of collaboration and communication between the Ministry and provincial education authorities.
Justice Minister Dr. Wijeyadasa Rajapakshe responded to the issue, suggesting that discussions could be held to establish a policy for interim orders issued by courts. He expressed willingness to consider potential adjustments to address the challenges outlined by Dr. Premajayantha.
Colombo (LNW): The Sports Minister of Sri Lanka and the Stabilization Committee appointed by him are becoming contributors to the tradition of neck squeezing instead of hugging and kissing the Asia Rugby. Lasitha Gunaratne of the National Sports Council is the main factor that motivated the Asia President to strangle the neck under the guise of kissing. It is very hilarious in one sense that today he is also a facilitator of the crime he committed. The funniest thing is that he has also become an advisor to the minister.
Asanga Senaviratne is maintains proximity to the Asia President and is among those who are keeping silent regarding the disruption of the journey of Sri Lanka rugby by hiding all these historical facts as required by the Asia President. Asanga was one of the individuals who opposed Lasitha Gunaratne, advocating that Sri Lanka should cast its vote in favor of the present Asia President. The other person who held the same opinion is Rizly Illyas, who is targeting that hatred in the hateful matter of banning Sri Lankan rugby by the Asia President today.
While Rizly and Asanga advocated for voting in favor of the incumbent Asian president, Lasitha cast his vote for the Japanese candidate. The Stabilization Committee, appointed by the Sri Lankan Minister, lent its support to Lasitha’s decision back then, and currently, also there’s a requirement for the Asia Chairman. According to this matter, the next thing to consider is how the Asian president can use the hatred of not voting for him to ban Sri Lanka in a different way.
Asanga Senaviratne stands as the individual with the closest proximity to the Asia President. Attaining power through an election to be a difficult for him. Because he is the central figure in the allegation of facilitating the participation of foreign players in Sri Lanka’s team. The imposed fine of 50,000 pounds still continues on Sri Lanka rugby as a substantial burden.
During his tenure as president, Lasitha was one of the primary contributors to the financial indebtedness faced by Sri Lanka Rugby. In this scenario, aside from the rugby club’s aspiration to diminish the influence of a handful of sports clubs and seize authority, the alternative avenue for the group with negligible popularity is to establish an interim committee through the utilization of sports legislation under the minister’s jurisdiction.
That is why the interim committee that has come now shows a strong desire to withdraw the vote contribution from the current situation to make a legal way for it. The present voting involvement is an extension of a system prepared by a New Zealander regarding matters such as Sri Lanka’s rugger constitution and the determination of its voters, not one hundred percent prepared by the current administration.
The Asia president with the youngest rugby membership in their country, is using Sri Lankans to attack Sri Lanka rugby which has exceeded one hundred and forty years . That is why Namal Rajapaksa when he was the sports minister, aimed to establish Sri Lanka’s rugby as a prominent brand within his family, is trying to connect Asanga Senaviratne to the rugby administration as a president of an advisory council to the rugby administration, who worked independently without attaching his political role to rugby.
This presented a favorable chance for the Asia President to address the concerns pertaining to Sri Lankan rugby and for Minister Namal Rajapakse to extend his influence over the realm of Sri Lankan rugby through his directives. However, Sri Lankan rugby maintained its integrity by resisting external pressures, upholding its autonomy and striving to safeguard its independence.
Minister Namal Rajapakse gives the order to dissolve Sri Lankan Rugby even if refuses to bow his head and then snap his neck, it will not succeed in the eyes of the law.
Nonetheless, the Asia President remains aligned with the Sports Minister of Sri Lanka, and in an online conversation, the President of Sri Lanka Rugby personally assigned blame to the Asia President.
How should a sports minister of that country take the blame for the influence of the Asia president by improperly using his presidential powers due to a blaming conversation that accuses of influencing the independence of the sport in his country? As an act of standing up for the country, or if not, by punishing the president of the Sri Lanka Rugby for not being a shy goat to the Asia president?
The second scenario has transpired. They are dressing it up in the garb of patriotism and turning it into a celebration in the guise of racism. This exemplifies the nature of the Rajapaksa faction. There is no dispute regarding the affluence and benevolence of the prominent Muslim community. But where the lower society is connected, they have the desire to get votes by stoking the fires and inflaming the ignorance of the oppressed majority.
Even the people who are going to do praises for it do not see falling on their feet in front of the Asian president as dancing to the verse of a Muslim. Because of this peculiar drama, the final act is drawing near for rugby within the Asia Games.
The Supreme Court has extended its reach to encompass the withdrawal of the Stabilization Committee as part of its verdict, citing various reasons and thus causing a delay in the committee’s decision-making process. As a consequence of this delay, the participation of Sri Lankan rugby in the Asian Games is likely to be hindered.
As one of its steps, citing the Asian Federation, the news started spreading on four hands about the plans to run Rugby without Sri Lanka. This is happening even though the International Federation has said that the rugby team can participate through the National Olympic Committee.
However, the head of the Olympic Council of Asia has taken actions that seem to undermine this news. Vinod Kumar Tiwari, the Acting Director General of the Olympic Council of Asia, has dispatched a letter to Benjamin Van Rooyen, the Acting Chief Executive Officer of Asia Rugby, urging the implementation of essential measures to ensure the inclusion of Sri Lanka.
As per insider information, it’s been reported that the President of the National Olympic Committee has likewise forwarded a comparable letter to the World Rugby. Tiwari has conveyed to the Asian executive that they have agreed for the participate of the Sri Lankan rugby team under the flag of the Olympic Council of Asia. Nevertheless, he also mentioned that in the event the team secures a medal, it will be credited to Sri Lanka’s medal count.
This is the first uprising that the Olympic Council of Asia was expected to correct in the face of the actions of the Asian Rugby Association. Tiwari points out how the true love of the game should be awakened when those pretending to love Sri Lankan sports and rugby as much as the international side embrace the wishes of the Asia Rugby President beyond the country. Furthermore, it is difficult to clarify what the case that the Stabilization Committee is presenting to the Supreme Court. If the Court of Appeal has stopped the pressure from the minister and ministry officials and if the World Rugby has banned rugby in Sri Lanka as political interference, how can the stabilization committee appointed on the basis of the minister’s political authority have legal validity?
The letters sent by the World Rugby to inform Sri Lanka, they are addressed to the Executive Director of the Sri Lanka Rugby Administration, which was dissolved by the Minister.
Accordingly, they have stated because of the Stabilization Committee is a political intervention, will not involve the Stabilization Committee in Sri Lanka’s rugger-related affairs.
The current situation is that the Stabilization Committee is reporting to the court through its lawyers that it can get money for Asia Rugby through the Ministry headed by the Minister, the leaking of judicial records cast doubt on the independence of the judiciary.
Even though the World Rugby does not accept it, the National Olympic Committee of the country does not accept it and even though the Court of Appeal has told the Minister to refrain from interfering with rugby, it is clear from all these facts that the intervention of the Minister should not be allowed, if the interim committee appointed by him is valid, then he will be giving hints about the support of the Minister while arguing in the courts. Not all wrong?
Somehow, if the National Olympic Committee goes to the Asia Rugby tournament with Tiwari’s blessing, they do not see a crisis in contacting the official board of Sri Lanka Rugby, which the minister dismissed as resource persons, but which they accepted. In such a scenario, the Ministry cannot avoid its responsibility to support and facilitate those rugby-related activities.
The court’s ruling doesn’t dictate the prohibition of providing facilities for rugby as a national sport, unless it directly undermines its independence. Therefore, if anyone behaves by defining the decision of the court as harmful to the sport, it is also possible that it will be an insult to the law in a certain way.
At the time of writing this note, this is going to be discussed in the Sri Lanka Cricket parliamentary Chamber. However, why isn’t the matter of the Rugby issue and the potential repercussions for Rugby losing the Asia Series being considered by the Supreme Council?
For nearly three years now, the political sports authority of Sri Lanka and the Asia President have wronged the pressure on Rugby, and to find out that the reason for the Sri Lankan protest of the Asia President is the violation of an election promise by a person in the national sports council of the minister, and the former 2018 who is still in a ministerial chair today a sports minister should have evidence.
Parliament has the ability to bring this history to the fore along with the letter sent to that minister in a way that the Asia President threatens in some way. If this matter is deliberated within the Supreme Council of a nation, numerous undisclosed facts have the potential to come to light.
Armed with this information, inquiries could be directed towards the Board of Asia, questioning the reasonability of associating with an individual who incurred a fine of £50,000 for allowing foreign players to play in Sri Lanka. Additionally, the question arises as to why Sri Lanka Rugby continues to bear this expense year after year. Could it not be feasible to recoup a portion of that sum from the officials who made the decisions that led to this situation? How is it that they are currently able to travel abroad without encountering any hindrances through the Immigration and Emigration regulations?
Today, Lasitha Gunaratne, a member of the National Sports Council, displayed frustration due to not casting a vote in favor of the incumbent Asia President during the Asia President’s appointment. Furthermore, hasn’t the Asia President also dispatched a letter to a minister containing certain threats related to Sri Lanka rugby?
Furthermore, it’s worth discussing the ethical considerations surrounding the inclusion of a president who was previously responsible for incurring a fine of £50,000 upon Sri Lanka, as the President of the committee appointed by former Sports Minister Namal Rajapaksa to provide advice on rugby matters.
Taking into account the past 15 years, it’s possible to highlight the financial losses (debt) incurred by Sri Lanka Rugby, can be pointed out according to the tenure of each president. We can also delve into the contributions made by each individual to prevent and mitigate the accrued debt. Indeed, it’s imperative for the Parliament to initiate inquiries into various aspects such as the organization and non-organization of tournaments, the initiation of new competitions, the expansion of rugby, as well as the notable accomplishments and distinctiveness of the outcomes on the international stage.
Rather than engaging in direct negotiations with local rugby sponsors to agree their sponsorship terms for Sri Lanka Rugby, the sports minister of the country involved one of their representatives in their sports sponsorship program and added them to the sponsorship of the Asia Rugby and became a chief guest at the award ceremony.
However, in this scenario, Sri Lankan rugby managed to attract a new set of supporters by conducting themselves in a manner that inspired confidence in their endeavors. The fact that the Asia President can assemble a group of Sri Lankans who are striving diligently to prevent the country from achieving an Asia medal by taking it to court for nothing within the context of rugby reflects the unfortunate reality experienced by certain citizens of this nation.
We should pose the question to the 225 representatives in the Parliament, “Are you all friends?” in light of the Parliament seemingly evading responsibility for this issue. Those individuals who possess evidence of the prolonged resentment of the Asia President, yet among these 225 representatives, prioritize personal alliances over the welfare of a country’s sport and jeopardize the chance of securing a potential medal, should unequivocally be told, “Go to hell.”
In a recent announcement, Dr. Nandalal Weerasinghe, the Governor of Sri Lanka’s Central Bank, projected that the nation is poised to draw in more than USD 13 billion in foreign receipts this year. A substantial driver of this growth is expected to be the influx of foreign remittances from Sri Lankan workers abroad, which is forecasted to surpass USD 10 billion by the end of the year. Dr. Weerasinghe noted that the country presently receives around USD 500 million each month in foreign remittances.
The Governor highlighted that the reopening of the tourism sector will also contribute significantly, with Sri Lanka projected to accrue approximately USD 2.3 billion in foreign receipts from tourism activities. Additionally, earnings from exports and other sectors are predicted to exceed the USD one billion threshold.
Dr. Weerasinghe emphasized that these combined factors are positioned to push the total foreign receipts beyond USD 13 billion this year. Furthermore, he outlined plans to augment the foreign reserves from their current USD 3.8 billion to approximately USD 10 billion in the foreseeable future.
Commenting on the country’s financial restructuring, the Governor indicated that Sri Lanka’s annual debt payments have been significantly reduced, from a previous USD 8 billion per year to around USD 4 billion, following debt restructuring efforts guided by the International Monetary Fund (IMF). He mentioned that the IMF had already approved an initial tranche of USD 330 million even before the restructuring process was initiated.
Dr. Weerasinghe assured that despite some areas still needing attention, Sri Lanka has made substantial progress toward fulfilling key obligations on the IMF agenda, which bodes well for the release of the second tranche during the IMF’s upcoming visit in September.
He also revealed that Sri Lanka has commenced debt repayments to bilateral donors, with USD 50 million already released to Bangladesh. To promote economic stability, the Central Bank of Sri Lanka (CBSL) will issue a new directive mandating a minimum 3% reduction in interest rates by banks. The CBSL Governor also stipulated that interest rates for pawn lending should be set at 18%, while credit card interest rates should be capped at 28%. Importantly, these rate adjustments will initially apply exclusively to banking institutions. On a positive note, non-performing loans, which had risen from approximately 11.3% to 13.5%, are gradually on the decline once more.
