Former MP Hirunika Premachandra, who along with several other women was arrested by the Kurunduwatta Police yesterday (14) was released on a personal bail of Rs. 500,000 by the Colombo Chief Magistrate today (15).
The group led by the ex MP was arrested for protesting against the Police over an arrest made by the Police on a group of women who staged a street drama in front of the United Nations Office in Colombo in objection to violence against women.
MIAP
Sri Lanka is to introduce transformational reforms and improve governance to come out of the current crisis, as the island suffers the worst currency crisis in the history of its intermediate regime central bank.
An important reform was for Sri Lanka to improve governance to make sure that the “system works there is a level playing field and there are fewer opportunities for a mis-use of the system or even corruption,” Timmer said.
“The first priority is to set up a very efficient social safety net and put in place some measures so that a large part of population can become more productive and have access to markets and to finance,” Timmer said.
Before new funding came the Sri Lanka had to do the required reforms, improve governance and also make progress on debt sustainability alongside the IMF program.
The Government is to appoint a Presidential Commission to achieve reforms in the public sector.
The move was announced by President and Finance Minister Ranil Wickremesinghe in his presentation of the 2023 Budget yesterday in Parliament.
The President revealed that there are 1.45 million public servants currently working in the various Government agencies, hence, a large portion of the Government revenue has to be spent on their salaries and wages. It has become a challenge to allocate resources for other public purposes, including developmental purposes.
Wickremesinghe said the proposed Presidential Commission will review all the aspects of public service in line with current requirements and make recommendations including necessary reforms.
In 2023 Budget Salaries and wages account for Rs. 1 trillion apart from Rs. 375 billion for pensions.
“At the same time, it will be possible to implement the proposed reforms to make the public sector to optimum level. Hence, I believe that considerable relief can be given to the public servants and pensioners at the latter part of the year 2023,” the President assured.
However he revealed that at present the State is bearing the cost of 420 Government institutions and enterprises. The annual loss of these major 52 SOEs is Rs. 966 billion in the first half of 2022.
“I hope to table these lists of institutions in Parliament in two or three days. Has the country benefited from these institutions for many years? Or has the country suffered,” the President queried during his Budget speech.
He also proposed to stop those SOEs paying PAYE/APIT tax liability of its employees from 1 January 2023.
Another proposal is the daily transfer of all revenue and receipt collections by Ministries and Departments, directly to the General Treasury with effect from January 2023 to reduce the substantial cost of finance due to delay in remitting revenue collection to the Consolidated Fund.
The President referred to the Interim Budget introducing several proposals, including the introduction of new Public Financial Management (PFM) Act incorporating binding fiscal rules and appointment of an Inspector General to keep the expenditures in check, which will be implemented in the near future. In addition, a number of circular instructions have already been issued to ensure strict control of Government expenditure.
Sri Lanka is to introduce transformational reforms and improve governance to come out of the current crisis, as the island suffers the worst currency crisis in the history of its intermediate regime central bank.
An important reform was for Sri Lanka to improve governance to make sure that the “system works there is a level playing field and there are fewer opportunities for a mis-use of the system or even corruption,” Timmer said.
“The first priority is to set up a very efficient social safety net and put in place some measures so that a large part of population can become more productive and have access to markets and to finance,” Timmer said.
Before new funding came the Sri Lanka had to do the required reforms, improve governance and also make progress on debt sustainability alongside the IMF program.
The Government is to appoint a Presidential Commission to achieve reforms in the public sector.
The move was announced by President and Finance Minister Ranil Wickremesinghe in his presentation of the 2023 Budget yesterday in Parliament.
The President revealed that there are 1.45 million public servants currently working in the various Government agencies, hence, a large portion of the Government revenue has to be spent on their salaries and wages. It has become a challenge to allocate resources for other public purposes, including developmental purposes.
Wickremesinghe said the proposed Presidential Commission will review all the aspects of public service in line with current requirements and make recommendations including necessary reforms.
In 2023 Budget Salaries and wages account for Rs. 1 trillion apart from Rs. 375 billion for pensions.
“At the same time, it will be possible to implement the proposed reforms to make the public sector to optimum level. Hence, I believe that considerable relief can be given to the public servants and pensioners at the latter part of the year 2023,” the President assured.
However he revealed that at present the State is bearing the cost of 420 Government institutions and enterprises. The annual loss of these major 52 SOEs is Rs. 966 billion in the first half of 2022.
“I hope to table these lists of institutions in Parliament in two or three days. Has the country benefited from these institutions for many years? Or has the country suffered,” the President queried during his Budget speech.
He also proposed to stop those SOEs paying PAYE/APIT tax liability of its employees from 1 January 2023.
Another proposal is the daily transfer of all revenue and receipt collections by Ministries and Departments, directly to the General Treasury with effect from January 2023 to reduce the substantial cost of finance due to delay in remitting revenue collection to the Consolidated Fund.
The President referred to the Interim Budget introducing several proposals, including the introduction of new Public Financial Management (PFM) Act incorporating binding fiscal rules and appointment of an Inspector General to keep the expenditures in check, which will be implemented in the near future. In addition, a number of circular instructions have already been issued to ensure strict control of Government expenditure.
In a breakthrough step forward, the Urban Development Authority (UDA) has launched a One-Stop-Shop (OSS) to lure new investments by fast-tracking approval for development applications.
Prime Minister Dinesh Gunawardena marked the launch of the facility along with Urban Development and Housing Minister Prasanna Ranatunga and UDA Chairman Nimesh Herath ceremoniously on Thursday at Waters Edge.
The OSS will facilitate entrepreneurs who have submitted all necessary documents to obtain approval for development permits in a fast-tracked manner of 21 days removing all unnecessary red tape which hindered growth.
The system will also forward the applications for the approval of other relevant institutions necessary for the development permits. OSS comprises 26 institutions at present and a Scope Committee has been established to represent and monitor all institutions on board. The Scope Committee will give the final approval for the development permits.
Speaking at the event Premier Gunawardena said the OSS will be a game-changer for the economic development of Sri Lanka.
“It is a milestone for the UDA as a public sector institution, to get all the information and approval from one place. This new unit is a great opportunity to explore technological advancements and contribute to the making economy.
This process will be a unique record of the UDA and urban development. It will become a breakthrough in Sri Lanka’s development,” he added.
Prime Minister also highlighted that it was necessary to speed up the implementation of projects to ensure the attractiveness of the destination.
“All the local Government institutions and departments should join hands in the program to achieve these goals without delay. It is a necessary practice of efficient public service to fulfil the responsibility of the overall State sector institutions and to actively contribute to overcoming the economic crisis,” he explained.
Noting that regional countries work efficiently by capitalizing on information technology, Premier Gunawardena insisted on adopting technology to all public institutions to improve productivity and delivery.
“The UDA is entrusted to effectively attract investment opportunities to the country nationally and internationally, ” Prime Minister Gunawardena said.
Urban Development and Housing Minister Prasanna Ranatunga pointed out that investments will only flow into countries that have simplified approval processes and business-friendly policies.
“The primary objective of introducing the OSS is to attract more investment by reducing the time for the approval process to issue development permits.
It will also reduce fraud and corruption by enhancing transparency in the whole process. The system will provide a facility for high-ranking officials to monitor it anytime,” he explained.
Minister Ranatunga also said laws should be amended to take action against the bureaucracy if they fail to give approval within 21 days of submission of the development application.
By Shanika Sriyananda
The existing economic crisis and soaring price hikes have resulted in food insecurity and malnutrition among children in many urban and rural families in Sri Lanka. Due to the prevailing global economic crisis it was also predicted that lack of consistent access to quality food has badly affected malnutrition.
Food insecurity and malnutrition are interrelated and also challenging issues in Sri Lanka due to the prevailing economic crisis. However, it needs a multi-stakeholder approach to resolve through providing emergency food relief to vulnerable families across the island.
Targeted to achieve Zero Hunger and Zero Malnutrition with an ultimate goal to reach Zero Poverty, the Government has taken several initiatives, especially to promote a food sharing culture that will lead to minimise food waste, at all levels of the society.
Since ancient times, people in Sri Lanka, who are bound to each other culturally and religiously, have not left anyone in their villages to suffer from hunger. Sri Lankans have a proud culture and tradition where they share food not only with the needy but also with their neighbours.
Even today, families, rich and poor, will share their cooked food or vegetables and fruits from their gardens with neighbours. It is a culture that Sri Lankans have inherited from their ancestors from generation to generation.
Considering this situation, the concept of Food Bank (FB)/Food Exchange (FE) was mooted under the guidance of President Ranil Wickremesinghe to ensure that no one in the country suffers from hunger. Under this concept FBs/FEs will be established in temples, kovils, churches and mosques which have a wide network covering the entire country.
The Food Bank or Food Exchange concept is used in many countries to share excess food in households with needy food-insecure families. Anyone who wishes to donate food to food-insecure families can do so to provide relief to needy families free of charge.
Introduced by the Food Security Division at the Presidential Secretariat, FBs/FEs will be established in every village as a support service for the needy communities and will play a major role in addressing hunger in the country. The FB/FE will help to secure food donated by all stakeholders – individuals in the area, local and foreign charity organisations, the government, private sector, local and foreign donors and philanthropists.
It is threefold: a.) Excess food can be donated to the FB/FE which can provide food for the most vulnerable families in the country, b.) Those who have excess food can be exchanged with other families, despite their economic status and social backgrounds. E.g.: Those who have excess harvest of mango can be exchanged with dhal donated to FB/FEs and c.) The FB/FE Society members (students) can grow vegetables and fruits at their home gardens and exchange them at the FB/FEs. This will help people in the area to have quality food.
The objectives of forming FB/FEs
The main objective of introducing FB/FEs is to promote this ancient tradition of the food sharing culture, which has some similarities to the ancient Barter System, where villagers who had excess food items and groceries exchanged them for the items that they lack at their homes.
On the other hand it is also aimed at establishing a network of food exchange in religious institutions across the country to support to improve the food accessibility to address the food security issue in the country to reduce food waste and improve utilisation of food in the most productive manner, to improve food access to vulnerable and low-income families who are in severe food insecurity, to exchange excess food with each other and improve nutrient intakes, to promote the food sharing culture in the country and to reduce acute malnutrition and food insecurity.
How do FB/FEs operate?
The FB/FEs will be operated through 25,412 religious places across the country with the leadership of religious dignitaries in respective areas. With no economic differences, the food in these village-based Food Exchanges will be available to all communities regardless of their ethnicity. Anyone in the community who can’t afford to have meals can walk into FB/FEs in their respective areas to have a meal or dry rations which will be distributed free-of-charge.
The leftover food in parties, hotels, restaurants, and other events can be handed over to FB/FEs to distribute among the needy. By setting up FB/FEs, it will create a link between food wasters and seekers and therefore, another objective of establishing FB/FE is to train masses to SAVE food.
The religious leaders from all religions – Buddhists, Hindus, Muslims and Christians – will play a major role in establishing FB/FEs in their respective areas in coordination with the Divisional and District Secretaries.
Forming Food Bank/Food Exchange Societies
Food Bank/Food Exchange Societies with volunteers, including Advanced Level and Dhamma school students will be formed in each religious institute to run the FB/FEs. Local NGOs which have expertise in the food handling field can train the FB/FE members on how to manage FB/FEs. They will register the needy families in the area in the Food Bank Societies.
The needy people and children with malnutrition in each area will be identified following the statistics given by Village Economic Revival Officers (VEROs) – Economic Development officer, Grama Niladhari, Public Health Officer (Midwife), Samurdhi Development Officer and Agriculture Research and Production Assistant in each Grama Niladhari divisions.
The villagers, who have excess food, can hand them over to the nearest FB/FE in their areas and get the food items they lack from the FB/FE. The food can be donated as dry rations and perishable food like vegetables, fruits and green leaves.
Beneficiaries
Tokens will be issued for the needy people in low-income families, people who lack mobility to engage in any means of earning, families with members of chronic diseases and families with malnourished children to get their food quota – dry rations, vegetables, green leaves, fruits or packed meals – from the FB/FEs.
Anyone who has excess food can also exchange with other food handed over to FB/FEs. Apart from people who are registered in FB/FE Societies, anyone who lacks a meal can walk into society to get food given by well-wishers or neighbours.
By exchanging food at the FB/FEs it is intended to improve nutrition among the exchanging families. For example, if a family has an extra harvest of green leaves they can exchange them for rice, dhal or any other food at the FB/FE.
Transparency
All the FB/FEs are mandatory to maintain records of each and every exchange of food to have transparency in the distribution process.
Food donation carts at the supermarkets
The Food Security Division will get the help of all supermarkets to get food donations to FB/FEs to support low-income families in urban and rural areas.
A distribution system will be planned to deliver donated food items to the needy people through food exchange societies in low-income areas.
From farms to FB/FEs
The farmers can also help the needy people who belong to food insecure families and children with malnutrition by donating their surplus harvest to FB/FEs in their areas.
The program of FB/FEs is a collective effort by all stakeholders of the society to resolve the food insecurity that prevails due to the present economic crisis in the country.
According to the World Food Security Committee of the United Nations Committee, food security exists when all people, at all times, have physical and economic access to sufficient safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.
The UN declaration on human rights has recognised the Right to Food as a fundamental human right. Accordingly, the UN sustainable development goals have set its second goal as ‘Zero Hunger’ by 2030.
Therefore, by forming FB/FEs based in religious places around the country the Food Security Division of the Presidential Secretariat expects the assistance of all stakeholders to make this project a viable and effective project to resolve the present status of food insecurity that prevails in all levels of the society. It is also aimed to achieve the vision of the Food Security Program of the Government ‘To ensure every citizen has access to enough food at a reasonable price for an active and healthy life, at any situation of the country’.
(The writer is a Director at the Food Security Division at the Presidential Secretariat.)
The Food and Agricultural Organization (FAO) states that around one-third of the world’s food was lost or wasted every year and it accounted for about 1.3 billion tons per year.
According to statistics, out of over 7,000 mts of solid waste generated daily, 56% (nearly 3,965 mts) of food is wasted in Sri Lanka.
An estimated 500 mts of food is wasted daily only in the Western Province. The ADB shows that nearly 45% of Sri Lanka’s population lives below the poverty line.
While food handling sources like hotels, offices, schools, hostels, hospitals have been identified as the main institutions where food is wasted, waste generated in households have also been increased significantly but in the recent months, according to the Colombo Municipality data, due to the present economic crisis, household food waste has been reduced by 45%.
According to the UN Food Waste Index 2021, in Sri Lanka the per capita food waste is 76 kilograms annually and every year, over 1.6 million tons of food waste is generated in households.
It was also found that approximately 1 to 4 metric tons of food waste is generated in hospitals per day as visitors bring food from outside for patients.
According to the Committee on Public Accounts (COPA), an estimated 270,000 mts of vegetables and fruits are wasted annually, causing a staggering annual loss of nearly Rs. 30 billion to the Sri Lankan economy. The extent of the post-harvest damage to vegetables and fruits in Sri Lanka is estimated at 30%-40%. These food, especially the vegetables and fruits which will go as waste can be used to feed the needy people in the area.
The implementation of the proposal of cannabis cultivation for the sole purpose of exportation can attract investments amounting to USD 2 billion within 2023 alone, said State Minister of Tourism Diana Gamage, speaking to reporters after attending the Parliament sittings yesterday (14).
“I am very happy, because I have been outspoken about this for this country. Because I see path to recovery through the implementation of this. I know that by implementing this, investments of USD 2 billion can be attracted and it will allow the industries of this country to continue. We can save this country,” she said.
President Ranil Wickremesinghe during his 2023 Budget Speech yesterday revealed that a committee of specialists will be appointed to investigate the possibility of cultivating cannabis for the sole purpose of exports.
MIAP
Sri Lanka Telecom Group (SLT Group), the national ICT solutions provider, has reported positive overall revenues of Rs. 79.6 billion, a consolidated growth of 3.9% for the first nine months of 2022 compared to the same period last year, driven largely by prudent and proactive measures undertaken in financial and operational management.
Demonstrating resilience in its business model, at company level, SLT Q3 revenues grew to Rs. 16.9 billion, an increase of 7.4% when compared to the same period last year, also reflected in optimistic year-to-date growth of 10.6% at Rs. 49.4 billion.
SLT Group’s contribution to the Government of Sri Lanka during the first nine months of 2022 amounted to Rs. 21 billion in direct and indirect taxes including levies and dividends.
Sri Lanka Telecom PLC (SLT) saw its profits declining in the three months ended September 30, 2022 (3Q22) due to sharply rising costs stemming from a bevy of factors including the sharp fall in the value of the rupee against the dollar and the soaring inflation amid the decline in revenues at its mobile services subsidiary, Mobitel Private Limited.
The group reported a consolidated revenue of Rs.26.7 billion for the July – September quarter, barely moved from the same period last year.
While SLT on a standalone basis maintained its top line at Rs.16.9 billion, up 7.4 percent from a year ago period driven by its carrier domestic, broadband and carrier international revenue streams, Mobitel has suffered some setback due to, “macro-economic challenges, tax changes and reduction of domestic interconnect charges”, the company said in a public relations statement.
But the company has sustained international business revenue growth.The domestic interconnection revenues affected both SLT and Mobitel after the regulator, Telecommunications Regulatory Commission of Sri Lanka directed to reduce the charges from April onwards.
As the government reversed course on its tax policy, the telecommunication services industry has seen a slew of tax increases and new taxes on their services since June including the Value Added Tax, Telecommunication Levy and more recently the Social Security Contribution (SSC) Levy which together have sent up what the customers pay for their ICT consumption.
With the new tax rates, Sri Lankans are now paying 35 percent combined tax for telecommunication services they consume other than internet services and 17.3 percent for internet services effective from September 1 before the new SSC Levy of 2.5 percent which came into effect from October 1 onwards.
Meanwhile, the group reported an operating profit of Rs.2.89 billion for the quarter, which was down by 28 percent, reflecting the challenges in the top-line and the costs front. At the company level, SLT however reported an operating profit of Rs.1.43 billion, up 27.8 percent from a year ago.
“The year-on-year electricity cost has decreased due to power outage whereas generator fuel cost has increased significantly due to power outage as well as fuel price”, the company said.
The retail industry which constitutes 23% of the country’s GDP has been hit hard by the ongoing forex crisis and urged the Government to resolve it fast before putting thousands of jobs at stake.
In a statement, Sri Lanka Retailers’ Association (SLRA) said the wider ecosystem of employees, suppliers, farmers and consumers of Sri Lanka impacted by the ongoing crisis and is pushing businesses to the brink of collapse.
The retail industry has been under tremendous pressure to deliver during the past one-and-a-half years, mainly owing to closures and disruptions due to the pandemic. The situation has been exacerbated since mid-2021 up to now due to increasing pressure on imports, which has been a core requirement for many retail businesses.
The retail industry in Sri Lanka plays a vital role in the country’s economy and it is pertinent to note that the national retail sales in Sri Lanka are approximately $ 13 billion. As a growing industry over the past years, it accounts for about 23% of the country’s GDP.
This industry also represents 14% of the labour market, with more than 1,100,000 people being employed within this sector in Sri Lanka. Additionally, the overall retail industry contributes significantly to the economic value chain of the country in many ways.
The Sri Lanka Retailers’ Association (SLRA), the apex body of organised retail in Sri Lanka, has raised growing concern about current standing of the local retail sector.
If the retail sector collapses completely, it will greatly affect its larger eco system that depends on retail, penetrating deep into the length and breadth of the country. The financial and social repercussions will be unprecedented and the loss of employment alone, will be disastrous.
The local retail sector accounts for over 30% of the national GDP and 14% of direct employment in the work force. Over 10% percent of households in Sri Lanka depend on employment in the retail sector.
A large section of the employment in this sector includes sales, cashiers, and lower mid-segment jobs, which are vital to keeping the country’s economy afloat, and providing deeper penetration of income streams across the country as well.
.Mr. Murali Prakash, President of the SLRA, commented on the current situation. “It is important that everyone come together with authorities, policymakers and stakeholders and work towards replenishing the local retail sector, as it is the backbone of our economy.
The SLRA cannot stress enough the importance of making the retail sector a priority, as without it, the economy would further dwindle, as other sectors that depend on retail will also collapse.”
The Social Security levy charged on basic essential items have further increased the burden on consumers. SLRA recommends to exclude the levy on basic essentials to provide relief to the consumers.
The SLRA urges the government and authorities to set up a system to facilitate the continuation of the retail sector business through a planned set of actions.
A 100% fail proof framework based on monthly availability that could be considered to rejuvenate the retail sector would ensure imports and provide a means of managing the current uncertainty in the country.
The SLRA also advocates transparency on how retailers should operate amidst the current crisis. It is imperative that frequent discussions by key authorities are taken place on a timely basis, as it is the only means of ensuring the survival of the local retail sector.
Responding to early reports on several Ruling Party MPs extending their allegiance to the alliance ‘Samagi Jana Sandhanaya’ formed by the main Opposition Party Samagi Jana Balawegaya (SJB) led by Leader of the Opposition Sajith Premadasa, Dr. Sudarshini Fernandopulle and Anura Priyadarshana Yapa have responded, stating that these claims are not entirely accurate.
In a social media remark, Dr. Fernandopulle said that the reports on her pledging allegiance to the Samagi Jana Sandhanaya are deceiving and that she only entered an agreement on the common role of the Opposition in Parliament towards the 2023 Budget during her meeting with the Opposition Leader yesterday (14).
Commenting on the meeting with the SJB yesterday, Yapa stated that they currently serve in Parliament only as an ‘independent group’ and that they will continue to contribute to the establishment of a programme in the form of an alliance by holding talks with various parties and groups in Parliament.
MIAP
A reputed Qatar investor with high-level connections sued a Sri Lankan bio energy firm and its sole owner and Managing Director for US$ 3 million defraud in an investment scam.
Qatar Diplomatic circle had intervened into this matter as it will impact the good relations between the two countries but it was of no avail, informed sources said.
Western Province Colombo High Court will open the hearing of this civil jurisdiction case on December 14 following a petition filed by the Qatar investor Ali Abdulla Al Suwaidi.
In his petition he claimed that although he was the sole investor of the funds required as the capital for the 2 MW rice husk fueled power plant situated at Nintavur, Amparai, no shares were allotted to him.
The Managing Director (MD) of the Company Zainulabdeen Mohamed Hairu had unlawfully taken action to remove the Qatar investor who was a director and two other directors, his nominees of Bio Energy Solutions Pvt Ltd registered as a private limited liability company.
The Qatar investor also claimed that the MD had intentionally cheated and stolen his investment of $3 million by promising return of investment and fraudulently denied the clear title for share ownership of the company.
He cited the Company, Bio Energy Solutions (Private) Limited, Managing Director and four others as respondents.
He pleaded from the Court to issue an order that the Petitioner’s name be entered into the Share Register of the 1st Respondent Company to reflect the Petitioner’s investment of $ 3million in the 1st respondent Company.
The proposed power plant approved and acknowledged by the Board of Investment (BOI) Sri Lanka could supply at a generating capacity of 2 MW to the National Grid around the clock at about 1.5 to 1.6 Kg/hour rice husk consumption.
On that basis the proposed power plant would consume approximately 70 Metric Tonnes of rice husk per 24 hours and which was supposedly 20 percent of the rice husk available locally within a 1.5 Km radius of the proposed power plant at Nintavur
Various payments charged by government institutions are proposed to be increased by 20 per cent with effect from January 01, 2023, said President Ranil Wickremesinghe, during his 2023 Budget speech in Parliament yesterday (14).
Accordingly, all payments pertaining to the issuance of passports, visa and other services of the Department of Immigration and Emigration will also be proposed for a revision.
Nonetheless, various charges already increased in 2020, 2021, 2022 will remain unchanged via the new resolution, the President added.
MIAP
