- President Ranil Wickremasinghe says ragging in Universities will be completely banned from next year: asserts new laws for this purpose will be enacted.
- Transport, Highways and Mass Media Minister Dr. Bandula Gunawardena urges all MPs to extend their fullest support to the policy decisions taken by President Ranil Wickremesinghe to overcome the on-going economic crisis.
- Former CB Governor Ajith Nivard Cabraal says it’s now 9 months seeking IMF support but not a single dollar has been received from them or any other lender, although many IMF “conditions” are now being implemented: points out that during his 6-1/2 month term, USD 3,800 mn bi-lateral inflows were secured, while the pipeline at the time of his departure was USD 10,700 mn.
- Joint Trade Union Alliance Convenor Niroshan Gorakanage warns the JTUA would not
allow the Govt to privatise the Eastern Container Terminal of the Colombo Port: asserts port workers are opposed to it: says the President wants to sell the ECT as per IMF conditions, but has no mandate to do so. - Free Trade Zones Investors Assn General Secretary Dhammika Fernando says the new 30% income tax and 100% increase in electricity tariffs have led to a massive crisis amongst Apparel Manufacturers: also says many of their factories are now being closed down.
- Senior SLPP MPs inform National Organizer Basil Rajapaksa that they will not agree to MPs from other Political Parties being appointed Ministers by the President, unless they are first appointed Ministers.
- Public Utilities Commission Chairman Janaka Ratnayake says the President has been misled about electricity tariff determinations as well as about his hotels and apartments: emphasizes the PUC has still not formally received a request from the CEB for a tariff revision for 2023.
- Temperatures plummet across Sri Lanka due to the combined effects of smog and winds off the East coast: many areas experience extremely unusual cold weather: schools across Sri Lanka closed on Friday.
- State Minister of Finance Shehan Semasinghe says purchase of condominiums will now be subject to a 15% VAT as per the new VAT Act, and companies with annual turnover of more than Rs.80 mn will also be liable for VAT: earlier, the threshold was Rs.300 mn turnover per annum: changes to be effective from 1st January 2023.
- Navy announces that 222 Naval Officers and 3,548 other ranks have been promoted to the next rank on the Navy Commander’s recommendation, in view of the Navy’s 72nd anniversary.
SRI LANKA ORIGINAL NARRATIVE: 10/12
President’s Climate Prosperity Plan identified climate issues that would affect the country – Ruwan Wijewardene
President Ranil Wickremesinghe prepared the “Climate Prosperity Plan” having recognized the climate issues that would affect the country in the future because of global activities, said the President’s Senior Adviser on Climate Change Ruwan Wijewardene.
Mr Ruwan Wijewardene issued a special statement from the President’s Office today (09) on the decline in air quality in Sri Lanka over the past two days.
He further said, “As a result of atmospheric disturbances in North India, Sri Lanka has also had to face several air pollution issues. The President initiated a discourse on climate change having foreseen such situations well ahead of time.
Air pollution affects the health of the country’s people as well as agriculture. Children and the elderly are especially affected. Therefore, school holidays were declared to prevent schoolchildren from its effects. It is also reported that there is some reduction in office attendance as well.
All these have a direct impact on the country’s economy. That is why the President talked about a green economy. We discussed this at the United Nations COP 27 Conference on climate change. It was also planned to establish a climate change university in this country. We will do this very soon. Small countries like ours are being adversely affected by the activities of the developed countries of the world. The President also raised that point at the COP 27 Conference.
The President continues to raise this issue because the most serious challenge that we as a country will have to face in the future, is climate change. I think many people who laughed when the President spoke about this back then, have understood the reality here. Therefore, I request everyone to support this program.”
President Media Division (PMD)
SL Imports in Oct. down YoY for 8th month but higher from Sept.
Sri Lanka’s imports in October declined for the eight consecutive month, despite recording an increase, compared to September 2022.
Central Bank said expenditure on merchandise imports declined by 21.2% to $ 1,336 million in October 2022, compared to $ 1,694 million in October 2021 but grew compared to the September 2022 figure of $ 1,284 million.
On a cumulative basis, import expenditure from January to October 2022 amounted to $ 15,421 million, down 7.3% from $ 16,632 million recorded in the corresponding period in 2021.
CBSL said the import volume index declined by 28.9% (y-o-y), while the import unit value index increased by 10.9%, in October 2022, implying that the decline in import expenditure in October 2022, compared to October 2021, was mainly driven by the volume effect.
Earnings from merchandise exports declined in October 2022, on a year-on-year basis, for the first time since March 2022, mainly due to lower earnings from garments exports.
Resultantly the merchandise trade deficit recorded a notable contraction in October 2022 to $ 285 million compared to the previous year’s figure of $ 502 million.
Exports in the first 10 months were $ 11 billion up 9%. Trade deficit reduced to $ 4.38 billion from $ 6.5 billion.
Detailing November import sector performance, CBSL said a decline in import expenditure was observed in intermediate goods, investment goods and non-food consumer goods, mainly reflecting the lower activities in the economy, compared to 2021.
Another reason for the imports was the measures taken to compress imports, while an increase was recorded in imports of food and beverages.
Expenditure on the importation of consumer goods declined by 13.5% in October 2022, compared to October 2021, led by lower expenditure on non-food consumer goods.
The decline in import expenditure on non-food consumer goods was observed in almost all subcategories, with a notable drop in imports of home appliances (primarily, televisions and refrigerators); telecommunication devices (primarily, mobile telephones); household and furniture items; medical and pharmaceuticals; and clothing and accessories.
Meanwhile, expenditure on the importation on food and beverages increased by 22.1% in October 2022 (y-o-y), mainly with an increase in import volumes of cereals and milling industry products (primarily, rice) and sugar.
Further, the imports of vegetables (mainly, dhal and potatoes) also improved to some extent. In contrast, expenditure on dairy products (mainly, milk powder), oils and fats (mainly, coconut oil), seafood (mainly, dried fish), fruits and spices declined in October 2022, compared to October 2021, which was mostly led by lower import volumes.
National Investment Fund extends fiscal aid for SOE restructuring
The listing of the National Investment Fund (NIF) on the Colombo and London Stock Exchanges is to help the Government raise US$ 400-500 million, foreign expert economist said.
Furthermore, at any point in time there is a need for additional funding, the Government will have the option of monetization of stakes held in the NIF and/or the underlying portfolio companies at valuations that should be higher over time as a result of the efforts to increase efficiency and profitability.
This was stated by Franklin Templeton Deputy CEO of Corporate Strategy Marius Dan adding that listing was a good way of raising short-term funds without losing any control.
He said: “It could help Sri Lanka from doing any fire sales now. It would help the Government with any short-term funding gaps.”
“Such transactions, through Accelerated Book building Offerings, generally take 48-72 hours to execute,” he further observed.
The creation of the NIF, its IPO, and the promotion of the country will allow large foreign institutional investors to access and invest in Sri Lanka, and will help raise the country’s profile around the world.
Additionally the fund managers can look at the best ways to integrate Franklin Templeton Deputy CEO of Corporate Strategy Marius Dan noted that listing was a good way of raising short-term funds without losing any control.
He said: “It could help Sri Lanka from doing any fire sales now. It would help the Government with any short-term funding gaps.”
“ESG has become a global theme and fund flows have increased significantly into companies who show a commitment to improving their operating model.”
Several experts recently at a webinar identified listing as a better step to raise capital for SOEs. Franklin Templeton Deputy CEO of Corporate Strategy Marius Dan noted that listing was a good way of raising short-term funds without losing any control.
He said: “It could help Sri Lanka from doing any fire sales now. It would help the Government with any short-term funding gaps.”
This new National Investment Fund will help the government to restructure ailing State owned Enterprises (SOEs).
The total loss of the key 52 SOEs was Rs.726.9 billion for the first eight months of 2022of which 31 SOEs recorded a profit beforetax of Rs. 134.9 billion and the balance, 21SOEs reported a net loss of Rs. 861.7 billion.
Notably, 99 percent of the total loss has been generated by three SOEs namely, CPC, CEB, and Sri Lankan Airlines (SLA) totaling a cumulative loss of Rs. 854.5 billion from these entities.
These three entities have been loss making for years which has resulted from debt overhang warranting cost reflective.
“AIR QUALITY INDEX DROPPED – THREAT TO NATIONAL SECURITY AND HUMAN SURVIVAL.”
The fog and mist seen these days is not a natural occurrence as the air quality has reached very unhealthy levels in the Northern part of Sri Lanka.
The area is registering over 200 in the air quality index (AQI) due to winds from India carrying polluted air.
The public has been advised to wear masks to protect their health.
AQI index was 212 in Jaffna, 189 in Gampaha, 170 in Dambulla, 169 Colombo, 161 Kandy, 170 in Negombo, and 157 in Ambalantota.
As per WORLD HEALTH ORGANIZATION Air Quality Index should be at 25.
Bad air quality will result in having strokes, cancer, chest related diseases including breathing difficulties and even drop of intelligence quality of children which can create a health hazard of the country. Citizens should be aware of and need to take precautions.
Therefore, the drop of air quality index can be identified as a threat to national security and national survival.
General Dr Boniface perera
(International researcher and writer.)
Colombo Port ranked as the highest performing port in South Asia
With the upgrading of the Colombo port as the best port in South Asia and 24th best in the world by UNCTAD, Sri Lankan Government is set to invite Japan once more to acquire the East Container Terminal (ECT) ignoring the mounting public protests, Sri Lanka Port Development Authority top official said.
The ECT is being offered to Japan at a time when Sri Lanka is requesting an IMF bailout. Whether Japan would agree or not, the negotiations to persuade the development partners to grant Sri Lanka a 10-year moratorium in exchange for the IMF facility are still ongoing.
The ECT is being offered to Japan at a time when Sri Lanka is requesting an IMF bailout. Whether Japan would agree or not, the negotiations to persuade the development partners to grant Sri Lanka a 10-year moratorium in exchange for the IMF facility are still ongoing.
The ECT is being offered to Japan at a time when Sri Lanka is requesting an IMF bailout. Whether Japan would agree or not, the negotiations to persuade the development partners to grant Sri Lanka a 10-year moratorium in exchange for the IMF facility are still ongoing.
Now that the ECT is heading to Japan, problems could arise because the powerful Trade Unions are already upset about the most recent plan to sell State assets to international partners.
The United Nations Conference on Trade and Development (UNCTAD) in its new Review of Maritime Transport 2022 has revealed that the Port of Colombo is the highest-performing port in South Asia.
The Review of Maritime Transport is a recurrent publication prepared by the UNCTAD secretariat since 1968 with the aim of fostering the transparency of maritime markets and analyzing relevant developments.
The data in the report suggested that despite the challenges of socio-political turbulence the country is struggling to overcome, the Colombo Port has remarkably improved its global rank.
According to the Container Port Performance Index 2022 initiated by the World Bank and S&P Global Port Performance Program quoted in the Review, Colombo Port, which was ranked 33rd last year, has been ranked 24th this year.
Saudi Arabia’s King Abdullah Port, which ranked second last year, has been ranked first this year, while Japan’s Yokohama Port, ranked first last year, has ranked 10th this year.
Meanwhile, the review finds that Asia remained the world’s leading maritime cargo handling centre in 2021, accounting for 42% of exports and 64% of imports.
The report further observed that in 2021, around 40% of total containerized trade was on the main East-West routes – between Asia, Europe and the United States. Non-main lane East-West routes such as South Asia-Mediterranean accounted for 12.9%.
World Bank VP suggests Sri Lanka to consider crisis as an opportunity for reforms
World Bank Vice President for South Asia Martin Raiser this week underscored the need for urgent action to reverse the deep crisis through long overdue reforms.
He prioritized debt relief, reform actions based on consensus and well-targeted measures to protect the poor.
During a three-day visit to Sri Lanka, Raiser met with Sri Lankan President and Finance Minister Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena and other senior officials to discuss the Government’s priorities for Sri Lanka’s recovery and key areas for World Bank support.
“This deep crisis is an opportunity for fundamental reforms, and it should not be wasted. The international financial institutions can help but quick and decisive action is needed on debt relief,” said Raiser.
“While Government reform action is urgent, its success will depend on strong economic, social and political consensus as the reforms will require everyone to adjust – companies, workers, and taxpayers.
He said, we also must not forget about the people who will need help with the adjustment and protect the poor and vulnerable.”
A high-level roundtable discussion organised by the Office of the President, focusing on the Government’s reform agenda and sustainable and equitable economic growth for the country, was also part of the visit.
The discussion focused on key reform priorities to inform future collaboration and support from international partners, including the World Bank, International Monetary Fund, Asian Development Bank, Asian Infrastructure Investment Bank, and other development partners.
During his remarks at the Sri Lanka Economic Summit 2022 organised by the Ceylon Chamber of Commerce, Raiser emphasized improved economic governance, stronger private sector competition and better targeted social protection as three priorities for Sri Lanka to reset from turmoil to opportunity.
He highlighted private-sector job creation as an important driver of growth and stressed the importance to preserve human capital as the main asset of society.
Raiser also met with representatives of the civil society, private sector, and development partners and visited a World Bank-supported agriculture project in Divulapitiya.
To date, the $ 125 million Agriculture Sector Modernization Project has benefited close to 128,000 Sri Lankans and generated about $ 150 million in new export earnings and foreign exchange savings from import substitution for Sri Lanka.
The World Bank was one of the first to respond to Sri Lanka’s economic crisis. The Bank’s emergency response repurposed $ 325 million from existing projects to protect the poor and vulnerable.
Of these funds, $ 241.3 million have already been disbursed to support close to one million vulnerable Sri Lankans with cash transfers, six million Liquid Petroleum Gas (LPG) cylinders for households and small businesses, $ 22.3 million-worth medicines and medical supplies to sustain essential services and 132,500 metric tons of urea fertilizer to support smallholder paddy farmers in the Maha harvesting season.
Alliance Air to start direct flights to Jaffna from Monday
Alliance Air, the wholly-owned subsidiary of Air India has chalked out aggressive expansion plans which include launch of flights to newer destinations, a top official has said.
This Indian Airline recently will launched its maiden overseas flight from Chennai to Jaffna making it the 55th destination connected by the airline.
Alliance Air, a wholly owned subsidiary of AIAHL is all set to resume its services connecting Chennai and Jaffna from Monday, after a nearly three-year pandemic-caused break.
The airline is all set to expand globally and commence commercial flight operations from Jaffna International Airport to Chennai International Airport with direct flight operations on Monday, Tuesday, Thursday and Saturday.
“This direct flight will operate four days a week. With the vision to connect to our neighbouring countries, it is our endeavour to offer better air connectivity to all our neighbours with their closest city hubs.
Pre-COVID, Alliance Air operated this commercial international flight. With the support from Government of India, Alliance Air will again resume this flight operation,” the airline noted in a statement.
On the launch of direct flight to Jaffna from Chennai, Air India Chief Ashwani Lohani said it was a major thing for Alliance Airline since it is the first international flight.
“Beginning with this (Chennai-Jaffna route), Alliance Air can connect with nearby countries like SAARC nation,” he said.
An Alliance Air flight from Chennai landed at the Jaffna International Airport on October 17 2019 as Sri Lankan President Maithripala Sirisena inaugurated the its maiden flight.it was suspended due to Covid-19 pandemic.
It added that Jaffna is one of the most beautiful towns located right on the northern tip of Sri Lanka. Jaffna is known for its predominant Tamil population and recognized as the cultural capital for Tamilians in Sri Lanka.
“The hospitality of the locals will surely impress any tourist to this place. They are just not wonderful people but are friendly too. If you are looking for a destination which offers beauty and great hospitality to travellers, then Jaffna should be in your travel plan,” it noted.
This flight is special in many ways. Apart from being Alliance Air’s maiden international foray, it has connected Chennai to Jaffna after a gap of 41 years.
Flyers coming into Chennai from Delhi, Coimbatore, Ahmadabad, Hyderabad, Bangalore, Mumbai, Dubai, Trivandrum and Muscat have the option of connecting onwards to Jaffna over Chennai making air travel more convenient.
“It is the constant endeavour of Alliance Air to bolster its network and soar higher connecting India and beyond,” the statement added.
The airline was earlier a subsidiary of Air India, until the national carrier’s divestment and hand over to the Tata Group in January this year.
Another achievement of DP EDUCATION…
The number of students who obtained A passes for the subject of Information and Communication Technology in the GCE O/L Examination has increased by 16% in 2021 compared to 2020.
Among the students who appeared in the year 2020 for the subject of Information and Communication Technology, the percentage of A passes was 24%.
But in 2021, that percentage has reached as high as 40%.
It is an indisputable fact that the reason for this unique awakening in relation to the subject of Information and Communication Technology is the unique educational opportunity provided by the DP Education program to the children of the country for free.
According to Dhammika Perera’s concept, a large number of school children are currently enrolled in the DP Coding School, which is a social mission carried out by the Dhammika and Priscilla Perera Foundation, which is run in association with the DP Education program.
We feel that even at a time when the country’s economy is in a serious crisis, the country’s people’s life is in a state of confusion, and the country is losing many achievements, the DP Education program’s critical contribution to the exceptional achievements of the country’s children in the field of education should be appreciated by everyone.
Dhammika Perera has left a note in this regard, on his official Facebook page is shown below.
Court issues notice to Sajith and Ranjith following the case filed by Diana Gamage
According to a case filed by Minister Diana Gamage of the Colombo District Court, notices have been issued to Sajith Premadasa, the leader of the Samagi Jana Balawega, and to Ranjith Madduma Bandara, the General Secretary of the party, to appear in court on January 25.
This order was given after the case bearing number DSP 500/2022 was called today (09) according to the facts pointed out by lawyer Uditha Igalahewa, who appeared on behalf of the plaintiff, and according to the facts pointed out to the court by Range Bandara, who currently holds the position of General Secretary of the United National Party, through an affidavit petition.
The General Secretary of the United National Party had pointed out that Sajith Premadasa and Ranjith Maddumabandara are members of the United National Party. It was also stated in the affidavit of the General Secretary of the UNP that a case against them was still being heard in the court.
Lawyer Udiga Igalahewa pointed out to the administration based on those facts that according to the constitution of the People’s People’s Party, a member of it cannot be a member of another party.