August 24, 2023

A significant stride has been achieved in Sri Lanka’s power infrastructure as the newly constructed Polpitiya-Hambantota 220kV transmission line is now seamlessly integrated into the national grid following the completion of its preliminary work.

In parallel, the modern grid substation located in Hambantota was energized on Thursday, August 24, as announced by the Ceylon Electricity Board (CEB).

This transformative project, funded by the Asian Development Bank (ADB) with an investment of USD 55 million, is aimed at elevating the efficiency and capacity of Sri Lanka’s power transmission system. The project encompasses the development of the Polpitiya-Hambantota 220kV transmission line as well as the establishment of the new Hambantota grid substation.

Covering a distance of 150 kilometers, the transmission line traverses through 11 Divisional Secretariats from Ambagamuwa to Hambantota, boasting a robust line capacity of 580MVA. Complementing this transmission enhancement, the Hambantota new grid substation has been fully realized, equipped with two power transformers boasting a combined capacity of 500MVA.

The implementation of these infrastructure components is anticipated to fortify the power grid in the southern part of the country. The improvements are set to amplify the reliability of power supply and augment the power transfer capabilities both to and from the Southern region, a development warmly welcomed by the CEB.

The successful culmination of this project underscores Sri Lanka’s commitment to advancing its energy infrastructure, bolstering the nation’s capacity to meet growing energy demands while enhancing the overall stability and resilience of the power network.

The Sri Lankan Rupee has demonstrated stability against the US Dollar at commercial banks across Sri Lanka today (August 24), maintaining its position from the previous day.

At Peoples Bank, the buying and selling rates for the US Dollar have experienced a marginal decrease, shifting from Rs. 315.80 to Rs. 315.56 for buying and from Rs. 330.63 to Rs. 330.38 for selling.

Commercial Bank, on the other hand, reports that the buying and selling rates for the US Dollar have remained consistent at Rs. 315.70 and Rs. 328, respectively.

Similarly, Sampath Bank has reported unchanged rates for the US Dollar, with buying and selling prices holding steady at Rs. 317 and Rs. 328, respectively.

The stability of the Sri Lankan Rupee against the US Dollar in the local banking sector comes as a reassuring sign, contributing to an environment of economic predictability in the country.

In a coordinated move, trade unions representing five professions within the Supplementary Medical Service sector have initiated a 24-hour token strike commencing this morning (August 23).

The island-wide trade union action, scheduled from 8:00 a.m. today until 8:00 a.m. on Friday (August 25), encompasses the participation of radio technologists, medical laboratory scientists, pharmacists, physiotherapists, and occupational therapists. The strike has been launched as a collective effort to press the authorities into addressing their concerns.

This industrial action is anticipated to impact critical medical services, including X-rays, CT scans, MRI scans, and laboratory procedures at hospitals, as well as the distribution of medicines.

The president of the Joint Council for Professions of Supplementary Medicine, Ravi Kumudesh, elaborated on the situation, indicating that the strike is rooted in seven distinct demands. However, he also reassured the public that certain medical facilities such as children’s hospitals, maternity hospitals, cancer hospitals, nephrology hospitals, and the National Institute of Mental Health would remain unaffected by the token strike.

As the strike unfolds, stakeholders within the healthcare sector are closely watching the developments, hoping for a resolution that meets the demands of the trade unions while minimizing the impact on essential medical services.

The Monetary Board of the Central Bank of Sri Lanka has made key decisions regarding the country’s monetary policy. In its latest announcement, the Central Bank has chosen to keep the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) unchanged at their current levels of 11.00 percent and 12.00 percent, respectively.

Furthermore, the Central Bank has taken a significant step by imposing interest rate caps on various financial products offered by licensed banks across the nation. Effective immediately, the interest rates on pawning facilities will be limited to 18 percent, pre-arranged temporary overdrafts will carry a maximum interest rate of 23 percent, and credit cards will be subject to an interest rate cap of 28 percent, all calculated on an annual basis.

This move is aimed at fostering fair and transparent lending practices within the banking sector while ensuring that consumers are shielded from exorbitant interest rates. By setting these interest rate ceilings, the Central Bank seeks to strike a balance between maintaining a conducive economic environment and protecting the interests of borrowers.

These decisions come at a crucial time for Sri Lanka’s financial landscape, offering stability and predictability to both borrowers and lenders alike. The Central Bank’s actions are expected to have a positive impact on the overall economy by supporting responsible lending practices and promoting the efficient allocation of financial resources.

1. Justice Minister Wijedasa Rajapaksha says exporters have withheld over USD 53.5 bn in Forex overseas, and not remitted to Sri Lanka: also says the situation has arisen mainly due to the change in the foreign exchange law in 2017: asserts that several exporters have provided false information or concealed the true figures from the Central Bank.
2. President’s Office says that President Ranil Wickremesinghe has highlighted “SL’s distinct expertise in global economics, particularly in connecting climate financing with debt management and proposed a National Consultative Committee involving both private & public sector entities to effectively coordinate these climate initiatives”.
3. Central Environmental Authority says the manufacture & sale of one-time use plastic drinking straws, cups, plates, knives, forks, spoons, string hopper trays, garlands etc. in Sri Lanka will be banned with effect from 01 October 2023.
4. The crop damage suffered due to the prevailing drought has increased to around 51,479 acres (51,055 acres of paddy), affecting 46,072 farmers.
5. State Minister of Education Aravindh Kumar says the results of the 2022 GCE Advanced Level examination will be released before September 10.
6. Analysts say that the National Consumer Price Index had recorded a value of 4.6% in July’23 on the highly elevated base of 66.7% in July’22: point out that the prices have increased a further 4.6% even from the very high index level of July’22: allege the new inflation indices introduced since Jan’23 has helped to mask the true increases in prices which have seriously affected peoples’ lives.
7. Indian External Affairs Minister Dr S Jaishankar tells Speaker Mahinda Yapa Abeywardene & Sri Lankan MPs that India will continue to support the development activities of Sri Lanka: Indian High Commissioner Gopal Bagle says India-Sri Lanka relations are expected to be further enhanced in 4 main areas of Food security, Energy security, Currency Support and Long-term investment.
8. Chairman of the Office on Missing Persons Mahesh Katulanda says justice will be served for the families of missing persons within a period of 6 months: asserts the tracing mechanism has been fast tracked with regard to the missing persons, and the process is being carried out transparently.
9. Face value of the Treasury Bill stock reaches Rs.5,600 bn by 31July’23 with the Book value being only Rs.5,117 bn, thus indicating that a massive sum of Rs.483 bn has been suffered as interest by the Govt: this week’s T/Bill auction fails to attract the offered amount even after increasing the weighted average yield: Monetary Board maintains the Standing Deposit and Lending Facility Rates at current levels of 11% & 12% respectively.
10. Dept of Meteorology warns that the Northern, North Central and Eastern provinces are expected to be affected by the high heat levels: adds that the heat index is forecasted to reach high levels in Vavuniya, Mullaitivu & Monaragala districts, as well: advises proper hydration, staying in the shade whenever possible, & wearing light-colored or white clothing to minimize heat absorption to mitigate potential risks associated with these arid weather conditions.

In a recent development, the trade union action initiated by railway electrical technicians has been officially called off, leading to the resumption of train services that experienced delays due to the strike.

The Sri Lanka Railways Department had previously announced significant delays in train services across all railway lines during the evening hours as a result of the strike launched by the railway electrical technicians’ trade union.

The disruption caused frustration among commuters at the Colombo Fort Railway Station, with multiple trains being held back, as reported by Ada Derana.

Despite the setback, the night mail trains have now begun operating, albeit with some delays, as confirmed by the reporter.

With the trade union action now resolved, railway services are expected to gradually return to their normal schedules, offering relief to the passengers who were inconvenienced by the disruptions earlier in the day.

A few showers will occur in Western and Sabaragamuwa provinces and in Galle and Matara districts.

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

Mainly fair weather will prevail elsewhere over the Island.

Today marks the solemn remembrance of two years since the passing of the esteemed former Minister Mangala Samaraweera. On August 24, 2021, the nation mourned the loss of a remarkable statesman who succumbed to a battle with COVID-19 while undergoing treatment at a hospital.

Mangala Samaraweera’s legacy transcends time, etching enduring imprints on the political landscape of Sri Lanka, particularly within the realm of liberal politics. His steadfast commitment to principles even in the face of daunting challenges such as racism, religious tensions, and militarism resonates deeply with the citizens he served.

As we reflect on these two years without his physical presence, the memory of Mangala Samaraweera remains vibrant and alive in the hearts and minds of countless individuals. His unwavering dedication to his ideals continues to inspire us, ensuring that his contributions to Sri Lankan politics endure far into the future.

The Government of the Federal Republic of Germany with the concurrence of the Government of Sri Lanka has appointed Dr. (Mr.) Felix Neumann as Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Sri Lanka based in Colombo.

He has presented credentials to the President of Sri Lanka Ranil Wickremesinghe, on 23 August 2023 at 10.00 a.m. at the Presidential Secretariat, Colombo 01.

The Government of the United Kingdom of Great Britain and Northern Ireland with the concurrence of the Government of Sri Lanka has appointed Mr. Andrew Patrick as High Commissioner of the United Kingdom of Great Britain and Northern Ireland to Sri Lanka based in Colombo.

He has presented credentials to the President of Sri Lanka Ranil Wickremesinghe, on 23 August 2023 at 10.00 a.m. at the Presidential Secretariat, Colombo 01.

The Government of the Republic of Italy with the concurrence of the Government of Sri Lanka has appointed Mr. Damiano Francovigh as Ambassador Extraordinary and Plenipotentiary of the Republic of Italy to Sri Lanka based in Colombo. He has presented credentials to the President of Sri Lanka Ranil Wickremesinghe, on 23 August 2023 at 10.00 a.m. at the Presidential Secretariat, Colombo 01.