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A new program is essential to propel the plantation industry forward, encompassing the tea sector 

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It should be a masterpiece of modern digital technology- Succeed in the goal of taking Sri Lankan tea internationally as pure tea

– The President says at the Annual General Conference of the CTTA 

President Ranil Wickremesinghe emphasized the necessity for a novel program to drive forward the plantation industry in Sri Lanka, encompassing the tea sector. He stressed that this program should be accurately crafted, integrating contemporary digital techniques.

These remarks were delivered during his address at the 129th Annual General Conference of the Colombo Tea Traders Association (CTTA), which took place Agust (15) afternoon at the Cinnamon Grand Hotel in Colombo.

The President highlighted that the tea industry possesses substantial potential to significantly contribute to the country’s economy. He underscored the importance of identifying the challenges within the sector and embracing innovative solutions to facilitate its transformation.

Continuing his statement, President Ranil Wickremesinghe further elaborated that the Government’s efforts have been focused on implementing programs aimed at rescuing the nation from economic distress and ensuring stability. However, it’s crucial to recognize that sustaining this economic stability for an extended period beyond a decade will be challenging if we continue to experience a trade imbalance in our economy.

In addressing this, President Wickremesinghe noted that the nation often finds itself compelled to secure foreign loans. He further highlighted that due to budget deficits, there emerges a necessity to print additional currency to cover these deficits.

The President emphasized that the nation stands at a critical juncture where a pivotal decision must be made – whether to revert to old systems or to embrace a more structured economic approach that propels the country forward into a new era. President Wickremesinghe asserted, “Remarkably, even amidst times of conflict, our nation’s economy demonstrated resilience. For instance, garment factories were established during wartime, showcasing our ability to navigate challenges.”

He continued, “Presently, sustaining an economy predominantly influenced by government control in aspects of ownership and regulation has become challenging. It’s essential that we consider alternatives, such as deregulation and privatization, to steer us towards a promising path.”

“The tea industry stands as a testament to private enterprise, not reliant on government backing. It’s a sector driven by individuals who utilized private capital, leading to both successes and failures. The historical backdrop also includes instances where land ownership and cultivation became contentious,” President Wickremesinghe emphasized.

“As we look towards the future, it’s crucial that we strategize. The tea industry holds immense potential to significantly contribute to our nation’s economy. Looking ahead over the next 20-30 years, we must analyse and address the challenges that have emerged within the sector,” he added.

“The looming challenge of global climate change poses significant threats to our future. Safeguarding the tea industry necessitates shielding our tropical climate from the impacts of climate change. We’ve actively put forth proposals on this front in international forums.

The implications of this situation can be viewed as a repercussion of extensive industrialization in the northern hemisphere. It’s imperative that we address this matter collectively. Our adaptation to climate change is paramount. It’s essential to acknowledge the precariousness of our water resources, a matter of grave concern.

A recent report highlighted the alarming degradation of usable water sources in Sri Lanka due to the changing climate. Given that a significant portion of our water sources is concentrated in the central hills, the implications directly affect the tea industry. It’s prudent for us to project where our market will stand in the next 50 to 60 years.

Considering the forecasts for global population growth by 2050, it’s projected that India’s population will rise by an additional 400 million. Similarly, the populations of Kenya, Malawi, and the Middle East are also on the upswing. Correspondingly, their per capita incomes are ascending.

However, Sri Lanka’s population is not experiencing the same growth trajectory. Therefore, our focus should be on how to enhance our product. China has been adopting systematic population control measures. Hence, engaging with China becomes essential.

In the times ahead, we can anticipate an influx of Chinese tea into the market, presenting favourable prospects. India, too, is poised to make its presence felt in the tea market. Therefore, meaningful discussions with China and India are pivotal.

Collaboration is key; we don’t journey alone. It’s crucial to meticulously study the market patterns of both Eastern and Western countries. Tea consumption in these regions often involves the addition of milk or biscuits. However, merely producing tea for these preferences isn’t enough. In today’s world, green tea has gained immense popularity. It’s imperative that we explore novel innovations and tea-related products.

Reflecting on my childhood, our homes used to feature expansive kitchens. However, modern homes are equipped with compact kitchens. In the next 20 to 30 years, residences without kitchens may feature one or two food processing machines. It’s imperative to acknowledge these forthcoming challenges and formulate suitable strategies.

We must face these challenges head-on and progress with appropriate solutions. Gunnar Myrdal, a renowned Swedish economic expert, analyzed Sri Lanka in his book ‘Asian Drama’ from the 1960s. He pointed out that ‘the British brought their managerial and financial expertise gained from the Industrial Revolution to India and Sri Lanka, subsequently introducing it to the plantation sector.’ This underscores that we have a contemporary plantation management system.

Now is the opportune moment to contemplate fresh management practices in comparison to those employed by small and medium-scale growers. The forthcoming program should be a masterpiece, seamlessly integrating the latest digital technologies.

“We should delve into the possibility of utilizing subjects such as artificial intelligence and biotechnology. This innovative endeavour should be spearheaded by the private sector. After all, the ultimate authority resides within your market.

Had it not been for Mr. Lipton’s arrival in Ceylon, our current state would not exist. Hence, we must urgently explore avenues to introduce new products to the market through system enhancements. You can rest assured of our full support in this endeavour. This is our contribution towards the tea industry’s future growth. We’re actively engaged in resolving the issues that arise alongside it.

I extend an invitation to all of you to persist in devising the finest solutions, ultimately achieving the objective of establishing Sri Lankan tea as a globally recognized, pure tea,” President Wickremesinghe concluded.

Minister of Industries and Plantations Ramesh Pathirana, Senior Advisor to the President on National Security and Chief of Staff to the President Sagala Ratnayake, Secretary to the Ministry of Plantations Janaka Dharmakirthi, Chairman of the Sri Lanka Tea Board Niraj De Mel, Chairman of the Sri Lanka Board of Investment and Port City & President’s Adviser Dinesh Weerakkody, Colombo Tea Traders Association President Sanjaya Herath, Vice President Lushantha De Silva, former Presidents Jayantha Karunaratne and Anslem Fernando were present on this occasion.

Navy men’s handball team secures second place in 02nd National Handball Championship

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The 02nd National Handball Championship was held from 11th to 14th August 2023 at the Puttalam Urban Council Ground. In the final encounter against the Sri Lanka Army, the men’s handball team of the Sri Lanka Navy secured the second place.

The tournament saw the participation of 21 well-known handball squads from the country. Following a tightly contested match (with a score of 36-31), the Navy achieved the runner-up position.

Meanwhile, the Navy’s Leading Seaman KMRSS Bandara won the award for the Best Attacker of the tournament and Leading Physical Training Instructor WHP De Silva was adjudged the Best Defender.

Separate Department for Cinnamon Development to be established. 

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The Government has decided to establish a new Department for Cinnamon Development amidst considerations, recognising the valuable contribution of the export crop to boost foreign exchange earnings.

 The proposed department is poised to offer a range of facilities and support to producers, suppliers, and exporters involved in cinnamon-related activities. The move was outlined as a 2023 Budget proposal. 

The joint proposal submitted by President Ranil Wickremesinghe and Plantation Industries Minister Dr. Ramesh Pathirana was approved by the Cabinet of Ministers on Monday.

“The decision to promote cinnamon as a commercial crop underscores its economic significance and aligns with the broader efforts to boost agricultural and export sectors,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing .

 He said the promotion of cinnamon as a robust commercial crop, will result in enhanced value chains, increased foreign exchange earnings, and a stronger position in the global market. 

Ceylon Cinnamon, known for its distinctive aroma and multiple applications, has historically played a crucial role in the country’s export earnings. Last year, 

Sri Lanka has about 35,000 hectares of cinnamon, which are mainly grown in the Galle and Matara districts, with about 60,000 farmers and 300,000 workers earning a living from the labour intensive and low-paid industry.

Ceylon Cinnamon, known for its distinctive aroma and multiple applications, has historically played a crucial role in the country’s export earnings.

Ceylon Cinnamon received the country’s first-ever Geographical Indication (GI) certification and status from the European Union (EU) Commission marking a major milestone. GI will act as a source of competitive advantage which will help to increase market differentiation, product turnover and allow for a premium price from the consumer. 

When asked for the rationale for further bloating the public sector with a new department at a time the Government finances are already stretched with a significant portion of State funds being allocated to salaries, Gunawardene acknowledged the fiscal challenges and assured that steps will be taken to minimise the impact. 

“The staff for the new department will be sourced from existing agriculture departments, mitigating any additional financial burden. 

The proposed department is poised to offer a range of facilities and support to producers, suppliers, and exporters involved in cinnamon-related activities. 

The move was outlined as a 2023 Budget proposal in the wake of the price of kilo of cinnamon has dropped to Rs 2000 from Rs 500 sometimes back.

Sri Lanka has about 35,000 hectares of cinnamon, which are mainly grown in the Galle and Matara districts, with about 60,000 farmers and 300,000 workers earning a living from the labour intensive and low-paid industry.Ceylon Cinnamon, known for its distinctive aroma and multiple applications, has historically played a crucial role in the country’s export earnings

Govt to overcome more economic challenges before IMF staff review    

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Sri Lankans are eagerly waiting for the arrival of the International Monetary Fund (IMF) staff team in a progress review mission to Colombo in a month’s time as they are not sure about the government’s track record of reform program.  

The fiscal side of the reform package has been implemented at a terrible cost to ordinary people in the country derail eminent economists said adding that debt restructuring arrangements are yet to be undertaken. 

Until that is completed and the rest of IMF’s agenda implemented it would be premature to celebrate the little benefits achieved so far from the recovery program. 

They noted that what is yet to be accomplished is far more challenging than has been implemented.       

The Washington-based lender approved a nearly US$3 billion bailout for crisis-hit Sri Lanka in March. The Asian island is struggling with its worst financial crisis in over seven decades, triggered by a severe shortage of foreign exchange.

The first review will take place from September 14 through the 27 and considers the programme’s performance until end-June, and if approved by both the staff and the executive board, would allow a disbursement of around US$338 million.

Sri Lanka’s programme is planned to deliver 71 outcomes by the end of September. Presently, as of the end of July, 35 are “met” and 14 are “unknown”. There are 8 more that are “not met” 

That means the ratio of unknowns to knowns is about 33% — rather high for a critical economic recovery programme 

These “unknowns” primarily encompass quantitative commitments, such as tax revenue and primary balance targets. These are not mere numbers but essential indicators of the improvement in Sri Lanka’s fiscal position.

Sri Lanka has been in 16 IMF programmes since 1966 and failed to complete almost half of them (7 of 16). Even past programmes that were completed saw huge departures from the original plans, which were excused by the IMF to move the programme forward.

State Minister of Finance Shehan Semasinghe says that receiving the second instalment of the extended fund facility provided by the International Monetary Fund will give a positive message to local and foreign investors about the future economy of Sri Lanka. 

The State Minister points out that the reason for this is that the measures have been taken to implement the proposals presented by the International Monetary Fund, including fighting corruption, maintaining financial discipline, and creating transparency.

“The economy of this country has entered the right path. Inflation is coming down and the rupee is becoming stable. 

 He said  that the government expects the cost of living to come down further after the implementation of the domestic credit optimization program. Also, receiving the second installment of the International Monetary Fund will be more convenient.”

He further mentioned that as a country with anti-corruption laws, a country with transparency, and a country with financial discipline, Sri Lanka has entered the path of receiving the second instalment of the Fund facility of the International Monetary Fund. 

Uma Oya project reservoir opens with more damages than benefits for villagers 

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The Diaraba Reservoir built under the Uma Oya Multi-Purpose Project inaugurated with the water release to the Diaraba reservoir from the Puhulpola Reservoir recently creating More damages than benefits for the people in the area, villagers, social activists and environmentalists complained    

Diyaraba Reservoir opened as the first phase of the Uma Oya Multipurpose Development Project and water is directed from Puhulpola Reservoir, which is the main reservoir of this project, to Diyaraba Reservoir through a tunnel.

Four reservoirs- Alikota Ara reservoir, Diaraba reservoir, Puhulpola reservoir and Handapanagala reservoir, were constructed under the mega project to divert 145 million cubic meters of water from the Uma Oya Basin, without impacting its environmental and other water needs to the Kirindi Oya Basin in the water-scarce Southern Zone.

This achievement brings an additional 120 megawatts of electricity to the national power grid and facilitates the cultivation of 15,000 acres of paddy fields in the Yala basin

The water from these reservoirs is used for irrigation of 50,000 acres of dry land and is also used to meet drinking water needs of Greater Bandarawela area.

Alikotaara and Kuda Oya reservoirs are also used to provide water for agricultural purposes. Here, the water capacity of the Hadapanagala reservoir will be increased by the Kuda Oya Reservoir.

This project was initiated in the year 2008 by the former President Mahinda Rajapaksa and the Iranian President Mahmoud Ahmadinejad with funds from the Iranian government and during the time of the former President Maithripala Sirisena, many activities of the multi-purpose project were carried out.

During the time of the former President Gotabaya Rajapaksa, the work continued and the current President Ranil Wickramasinghe, had to face many challenges to carry out the Uma Oya multi-purpose project due to the financial issues and was able to resolve those financial issues with the support of the cabinet.

Iran’s Teheran-based Farab Co. was the EPC Contractor of the Uma Oya Multipurpose Project with a total cost of US $ 514.5 million (Rs.15, 474 million), 85% of which was provided by t

According to a recent research survey of Sri Lanka Nature Group (SLNG) most of the houses in surrounding villages to reservoirs are partly or fully damaged, wells and springs have dried up and swathes of agricultural lands have been abandoned due to there being no water for cultivation.

Emeritus Prof. Jinadasa Katupotha, Department of Geography of the University of Sri Jayewardenepura, vehemently opposing the Uma Oya project urged the Government to permanently shut down the project due to its geographical and geological unsuitability apart from social, economical and ecological issues. “

This is one of the most unsuccessful projects in the Sri Lankan history. It is not viable to continue with the project even after addressing the main factor – the tunnel leakage, he added. 

 Many cautious environmentalists warned that the Uma Oya watershed cannot sustain such a large water diversion project.

JICA readies in funding SL water projects but mum on stalled projects      

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In the wake of halting Japan International Cooperation Agency (JICA) funded 12 projects in Sri Lanka, the Japanese donor agency seems to have been given consent to resume or launch  mega water infrastructure projects, Water Supply and  Estate Infrastructure Ministry officials claimed. .      

Sri Lanka’s relations with Japan was tested in the last two years after former President Gotabaya Rajapaksa scrapped a JICA-funded US$ 1.5 billion light railway transit (LRT) project claiming it was too expensive and unilaterally cancelled a $500 million trilateral deal with India and Japan to develop the Eastern Container Terminal (ECT) of the Colombo Port.

Sri Lanka has recently been trying to rebuild relations with Japan who previously poured many millions of dollars in funds to the country.

Japan and Sri Lanka are in talks to recommence stalled projects funded by Japan International Corporation Agency (JICA) here, upon the imminent conclusion of the ongoing debt restructuring process.

The matter was discussed at a meeting on Wednesday (Aug. 16) chaired by Minister of Water Supply & Estate Infrastructure Jeevan Thondaman, with Japanese Ambassador Mizukoshi Hideaki and the Chief of Representative of JICA Tetsuya Yamada in attendance.

The Ministry of Water Supply and Estate Infrastructure Development said the two sides discussed about laying the groundwork for innovative, new water infrastructure projects that align with the island nation’s developmental goals.

During the meeting, a diverse array of topics were covered, reflecting the collective commitment towards advancing the island nation’s water sector, enhancing sanitation efforts, implementing crucial plantation reforms, and addressing the challenges faced by upcountry plantation communities.

Further, the ministry mentioned that the focus of the discussion also fell on the recent initiatives in the water sector.

Accordingly, Minister Thondaman has shared plans to improve the performance and efficiency of the National Water Supply & Drainage Board (NWSDB) and a new public-private partnership (PPP) initiative for a floating solar energy solution to address the energy requirement for safe water production.

The lawmaker underscored the importance of improving the performance of the Water Board, introducing new corporate and business processes, upskilling the workforce and the strategic introduction of new technologies. 

The JICA has expressed their willingness to support these initiatives through Japanese technology and processes.

The minister also shared his vision for reforms within the plantation sector, underscored by the establishment of policy formulation committees addressing the education, health, housing, employment, skills development and other needs and issues faced by plantation communities.

The two sides further discussed the existing plantation model and the urgency of a new, equitable model as a significant step towards the sector’s future transformation.

The JICA also expressed its keen interest in actively supporting initiatives that uplift the conditions of the upcountry plantation communities in Sri Lanka.

The Secretary answers to the rumors about the Eastern Province Governor

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An anonymous letter has been circulated on social media to slander the Governor of Eastern Province Mr. Senthil Thondaman.

Some of the things in that letter have been pointed out as frauds committed by the Governor of the Eastern Province for two months.

It is mainly said that the Governor of Eastern Province is wasting government money by misusing government vehicles and using government employees according to his needs.

A letter signed by the Secretary of the Governor of the Eastern Province has been sent to the Chief Secretary of the Province to clarify the matter in this regard.

The letter sent by the Secretary states that the Governor of the Eastern Province does not use government vehicles improperly and uses the vehicles used by former Governors, these rumors are considered as hateful statements towards the Governor and false news is being spread to undermine public confidence in the Governor.

Eastern Province Governor’s Secretary LB Madanayake says that those who want to know true information in this regard can apply and get it under the Right to Information Act and should not be disappointed by false information.

Sri Lankan President Invited to G77 Plus China Summit in Cuba

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President Ranil Wickremesinghe has been extended an invitation to participate in the upcoming Summit of the Group of 77 (G77) plus China, slated to take place in Cuba in September, as reported by foreign media sources.

The invitation was conveyed by the Cuban Ambassador to Sri Lanka, Andrés Marcelo González, who presented a letter from Cuban President Miguel Díaz-Canel to President Wickremesinghe during a diplomatic meeting. This announcement was made through Cuba’s official state news agency, ‘Prensa Latina,’ referencing diplomatic insiders.

Scheduled for September 15 and 16 in Cuba, the summit’s central theme is “Current Challenges of Development: Role of Science, Technology, and Innovation.”

Founded in 1964 as part of the Non-Aligned Movement, the G77 plus China comprises a coalition of 134 countries. This coalition seeks to advance the collective economic interests of its member states while also fostering increased collective negotiation power at the United Nations.

The group faces formidable developmental challenges, representing a significant global demographic with 80 percent of the world’s population and over two-thirds of UN member states. As the Summit approaches, the G77 plus China continues its efforts to address these challenges and enhance cooperation for the benefit of its member nations.

Foreign Affairs Minister Ali Sabry Briefs Diplomatic Corps on Sri Lanka’s Developments

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In a bid to foster transparent communication and information sharing, Foreign Affairs Minister Ali Sabry addressed the Colombo-based diplomatic corps on Wednesday, August 16, providing insights into the current developments in Sri Lanka.

The Ministry of Foreign Affairs highlighted that this meeting was part of a series of regular briefings organized by the Ministry to ensure that the diplomatic community remains informed about the latest developments in the country.

Minister Sabry delved into key advancements, shedding light on recent measures to stabilize the nation’s finances, efforts towards economic recovery and growth, as well as significant legislative reforms. Among these reforms were the adoption of the anti-corruption bill, proposals for a truth-seeking mechanism, and the introduction of an anti-terrorism bill.

A focal point of Minister Sabry’s briefing was the President’s statement in Parliament earlier in August concerning the 13th Amendment to the Constitution. Furthermore, he provided an overview of the strides made in ongoing reconciliation initiatives and the notable work being carried out by independent mechanisms.

Foreign Secretary Aruni Wijewardane, also addressing the gathering, outlined Sri Lanka’s active participation in multilateral platforms. She highlighted Sri Lanka’s constructive engagement in the 4th Cycle of the Universal Periodic Review (UPR), the examination of Sri Lanka’s Report under the International Covenant on Civil and Political Rights (ICCPR), and the country’s continued involvement with the United Nations. Sri Lanka’s participation in the forthcoming 54th session of the Human Rights Council and the 78th session of the United Nations General Assembly in September 2023 were also underscored.

The Foreign Secretary spotlighted two significant upcoming events: the Fifth Forum of Ministers of Environment Authorities of Asia Pacific scheduled for October 3 to 6, 2023, in Colombo, and the IORA Ministerial Meeting set for October 11, 2023. During the latter event, Sri Lanka is poised to assume the chairmanship of the organization for the 2023-2025 term.

The briefing included presentations by key domestic institutions. These included Dhara Wijayatilake, Chairperson of the Office for Reparations (OR); Mahesh Katulanda, Chairperson of the Office on Missing Persons (OMP); Deepthi Lamahewa, Director General of the Office for National Unity and Reconciliation (ONUR); Asanga Gunawansa, Director General of the Interim Secretariat of the Truth and Reconciliation Commission; and V. Krishnamoorthy, Director General of the Office for Overseas Sri Lankan Affairs (OOSLA).

Additional Secretary of the Presidential Secretariat, Chandima Wickramasinghe, provided an update on the implementation of Sri Lanka’s National Action Plan on Women, Peace, and Security.

The briefing saw the active participation of High Commissioners, Ambassadors from Diplomatic Missions, and representatives from the United Nations based in Colombo.

Sri Lanka Original Narrative Summary: 18/08

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  1. Former Education Minister and Finance Deputy Minister S B Dissanayake says Dr P B Jayasundera and Ajith Nivard Cabraal would have steered Sri Lanka through the 2022 economic crisis if they were given an year to implement their strategies without interruption: also says the Treasury Secretary and CB Governor/State Minister duo had navigated the Sri Lanka economy through many crises during the period 2006 to 2014 and grew the GDP from USD 20 bn to USD 79 bn during that period.
  2. Representatives of university academics, bankers, engineers, doctors and other professionals from 47 Trade Unions assemble at the President’s Office and seek a meeting with the President’s Secretary: demand a response to their request that the recently imposed taxes be reduced and redress be granted from the negative effects of the IMF programme.
  3. Chinese Foreign Minister Wang Yi meets with PM Dinesh Gunawardene at a International Forum in Kumming, China: says China will help Sri Lanka to effectively address the challenge of financial debt.
  4. Environmentalists claim that organised groups have deliberately set fire to over 25,000 acres of forests around the country this year in order to encroach forest land.
  5. President Ranil Wickremesinghe says education in Sri Lanka will have to change drastically to fit into the future: also says Chinese, Hindi & English must be learnt by children in order to fit into the changing world: asserts that students in schools will also have to pursue their education through mobile phones and podcasts.
  6. Public Utilities Commission grants approval for the Ceylon Electricity Board to procure 100Mw of generation capacity on a short term basis for a period of 6 months from 18August’23: the Electricity Consumers’ Association claims that numerous irregularities are likely to occur in the proposed emergency power purchase process and that they intend to bring that to the notice of the relevant parties, including the PUC and the Opposition.
  7. A group of SJB MPs together with MPs from other parties initiate a move to bring MPs of all parties to form a joint group to be titled the “MPs Guild for Economic Justice’: the group is expected to make an announcement next week.
  8. Primary Dealer company First Capital Holdings announces that it’s profits for the quarter ending 30June’23 has jumped to a phenomenal Rs.2,810 mn, from a mere Rs.96 mn last year: a 29-times increase: Opposition leader Sajith Premadasa has repeatedly claimed that Primary Dealers had made exceptional profits as a result of the Domestic Debt Re-structuring, while the EPF and other superannuation funds were made to suffer massive losses.
  9. State Minister of Finance Shehan Semasinghe asserts that receiving the 2nd tranche of the IMF’s Extended Fund Facility will portray a positive image of the economy in the future to foreign and local investors: also says the economy is on the right path and a ‘very reasonable’ stabilisation will be seen by Dec’23.
  10. National Water Supply and Drainage Board urges the public to use water sparingly: also says the overall daily purified water supply capacity has decreased by 9%: the water supply to Kurunegala city to be limited from today.