Ambassador Sri Lanka to the Kingdom of Bahrain H.M.G.R.R.K. Wijeratne Mendis called on His Royal Highness Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister of Bahrain at Gudaibiya Palace on 03 August 2023.

His Royal Highness highlighted the strength of Bahrain-Sri Lanka relations and the importance of furthering cooperation to the benefit of both countries and achieving mutual goals. His Royal Highness wished the Ambassador success in performing her diplomatic duties.

Ambassador Wijeratne Mendis conveyed thanks for the opportunity granted to meet with His Royal Highness, noting HRH the Crown Prince and Prime Minister’s commitment to advancing bilateral relations to meet common aspirations.

Ambassador further extended her appreciation on behalf of the Government of Sri Lanka to the Government of Bahrain for the kind assistance provided to the Sri Lankan community living and working in Bahrain during Covid 19 pandemic ensuring their safety and security.

The Personal Representative of His Majesty the King His Highness Shaikh Abdulla bin Hamad Al Khalifa, and the Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa also attended the meeting.

Monetary policy transmission to the real economy in Sri Lanka is still incomplete, the governor of the country’s central bank, Dr. Nandalal Weerasinghe, said at a LSEG FX Community Event on Monday (Aug 7).

Weerasinghe said he would like to see private sector interest rates come down further and at a faster pace, adding that the domestic debt restructuring is the most important focus for the debt-laden country in the near-term.

“We would firstly like to see yields drop in line with policy rates and, from there, decline further. We are waiting to see this reaction from markets,” he said.

“Given the downward inflation trajectory we see room to further loosen policy rates.”

Hit by a severe foreign exchange shortage last year, Sri Lanka’s economy crumpled, pushing the central bank to raise interest rates to record levels to counter rampant inflation and currency pressure.

The country secured a US$2.9 billion rescue package from the International Monetary Fund (IMF) in March.

In the last two months Sri Lanka has slashed policy rates by 450 basis points, signalling a focus on growth after the crisis-hit economy contracted by 7.8 per cent last year.

Sri Lanka is on track to post a stronger performance this year than the 3 per cent contraction projected by the IMF, Weerasinghe said.

“Sri Lanka has managed to do better than expected before and we are hopeful that Sri Lanka will once again perform better than the projections.”

Over the past five months Sri Lanka’s economy has stabilised with inflation dwindling to 6.3 per cent in July, from a high of 69 per cent last September, and on track to hit the central bank’s target band of 4 per cent – 6 per cent.

Sri Lanka’s economic stability is also dependent on the upcoming budget, which is likely to be presented to parliament in November.

“Sri Lanka has to ensure that fiscal consolidation and other measures outlined in the IMF program are taken forward in a strong budget. That is very important for Sri Lanka’s recovery to be sustainable,” Weerasinghe said.

Source: Reuters

1. Cabinet approves the release of the “required amount of water” from Samanalawewa reservoir to Uda Walawe reservoir & from there to farmers for cultivation: Energy Minister Kanchana Wijesekara says the options for the release of the maximum amount of water for agriculture, while ensuring a continuous power supply without any power cuts, has been shared with the Cabinet.
2. Irrigation engineers say the Udawalawe reservoir that has a total capacity of 217,800 acre-feet now has only 956 acre-feet of water, just 0.5% of the total capacity; also say that about 32,000 acre-feet of water is usually released for agriculture during the farming season but only 934 acre-feet of water was released for agriculture on Sunday.
3. CB says Reserve Assets have increased by 1% to USD 3,762 mn in July’23, from USD 3,724 mn in June’23; analysts say this includes SWAPs of USD 1,400 mn from China, USD 400 mn from India, & USD 200mn from Bangladesh, “hot-money” investments of around USD 550 mn in Govt Treasuries, and USD 330mn loan from the IMF: meanwhile, unpaid Forex Debt in 2022 was USD 2,832 mn, and in 2023 upto June’23 estimated at USD 3,000 mn, totalling nearly USD 6,000 mn.
4. Several political parties represented in Parliament, including the SLPP, SJB, and SLFP, to submit proposals to the Presidential Secretariat re. the 13th Amendment: Freedom People’s Congress (FPC) and JVP-led National People’s Power decide not to do so.
5. Training SLAF air craft that took off from China Bay air-strip crashes, killing both the trainer & trainee: SLAF Commander Air Marshal Udeni Rajapaksha appoints a committee to probe the incident.
6. President Ranil Wickremasinghe appoints High Court Judge M C B Sanjeeva Morais as a Court of Appeal Judge & Court of Appeal Judge Sobitha Rajakaruna as the Acting President of the Court of Appeal.
7. Iranian President Ebrahim Raisi meets Sri Lanka’s Foreign Minister Ali Sabry in Tehran: says “Iran is ready to share its scientific and technological knowledge and expertise” with Sri Lanka: emphasizes need to activate the joint commission for economic cooperation between the two countries.
8. Tourism Minister Harin Fernando says tourist arrivals so far this year has crossed the 800,000 mark: highlights its positive impact on the sector’s vitality.
9. Disaster Management Centre says 12 districts are currently facing drinking water shortages owing to the prevailing dry weather conditions: also says around 48,000 families have been affected: assures that arrangements are being made to distribute drinking water to nearly 156,000 persons affected individuals within these 12 districts using bowsers.
10. Planters’ Association of Ceylon renews calls for urgent action from policymakers to allow diversification into more lucrative crops like oil palm, in the wake of a sharp reduction in prices of tea and rubber over the first half of 2023.

President Ranil Wickremesinghe has initiated fresh appointments to the Court of Appeal, signaling changes within the judiciary.

As confirmed by the President’s Media Division (PMD), the ceremony saw the oath-taking of High Court Judge M.C.B. Sanjeeva Morais, who assumed the role of a judge within the Court of Appeal.

Additionally, Court of Appeal Judge Sobitha Rajakaruna was inaugurated as the Acting President of the Court of Appeal, further cementing the shifts within this vital judicial institution.

The Presidential Secretariat according to a leading newspaper the Sunday Times has issued instructions to its entire staff telling them not to solicit or take personal photographs or selfies with any visiting head of state, VIPs or dignitaries in the future.

The staff have further been instructed that any information on such visits should be confined to the respective official media statements.

The instructions came after attention was drawn to Presidential Secretariat staff having taken selfies with French President Emmanuel Macron during his visit to Sri Lanka on July 28. This had irked several VIPs. Even the Prime Minister ( No 2 ) nor the Speaker (No 3) in the country were not present. But Presidential Secretariat staff were seen stalking the French President for pictures on video . A retired Secretary told LNW that he was surprised because the President was from the old school . How is personal staff got access to the French President was not diplomatic at all. Further he said his personnel staff are not official positions in the hierarchy in the state to attend high level Head of State visits. His official secretary must take the lead. He praised the First Lady Wickramasinghe for her dignified conduct. But unfortunately for some it is like the old saying “monkey getting a razor knife “ it has become the norm and they are following the Mahinda Rajapakse era. People wanted a break from the past,  he noted. 

The Sunday Times went on to say posting of these selfies drew adverse comments on social media with few calling the President’s office to ask if this was protocol observed in the breach. Protocol among public servants is a matter that requires classes to be given by, maybe the Foreign Ministry the paper noted.

Adolf .

Several spells of light showers will occur in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts.

Showers or thundershowers may occur at a few places in Eastern and Uva provinces during the evening or night.

Mainly fair weather will prevail elsewhere over the Island.

General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers

Officers from the special raid unit of the Sri Lanka Transport Board (SLTB) recently uncovered a major counterfeit ticket scam on the Southern Expressway. During a routine inspection on a SLTB bus traveling from Kadawatha to Galle, 52 passengers were found to be using fake tickets. The bus’s two conductors and the driver were arrested and handed over to the Kadawatha Police, later appearing in the Mahara Courts and being remanded.

The total amount defrauded from the counterfeit tickets amounted to Rs. 49,400, with each passenger paying Rs. 950 for a one-way fare between Kadawatha and Galle.

SLTB Chairman Lalith De Alwis has initiated an internal investigation into the incident. Additionally, Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardhana revealed that the SLTB Chairman filed a complaint with the Criminal Investigation Department (CID) about frequent reports of counterfeit tickets being issued to passengers on SLTB buses operating on the Southern Expressway. The CID is currently conducting an investigation into the matter.

SLTB buses on the Southern Expressway operate without conductors, and tickets are issued before the journey. However, it has come to light that a systematic scheme is pilfering the income due to the SLTB by issuing counterfeit tickets. Another inspection on a bus traveling between Embilipitiya and Makumbura revealed that 17 out of 24 tickets issued were counterfeit, resulting in an embezzlement of Rs. 17,770 for that single journey.

Due to the seriousness of the situation, the CID has now launched a comprehensive investigation into the income of all SLTB buses operating on the Southern Expressway. The authorities are determined to apprehend those responsible for this fraudulent activity and ensure the integrity of the transportation system.

The Ports, Shipping, and Aviation Ministry of Sri Lanka have set in motion plans to reconstruct the Talaimannar Pier, enabling passenger vessels to operate between Talaimannar and Rameswaram, India. The pier had been destroyed and abandoned during the conflict era in the North.

Under the guidance of Ports, Shipping, and Aviation Minister Nimal Siripala de Silva, the Sri Lanka Ports Authority (SLPA) has been entrusted with the task of reconstructing the pier, with an estimated investment of Rs. 1,800 million.

Concurrently, around 10 acres of government-owned land adjacent to the port will be acquired to facilitate port infrastructure development, including the construction of a modern passenger terminal and warehouse facilities. These developments will be carried out under Public-Private Partnership (PPP), with Request for Proposals (RFPs) being called for the investments.

In the past, a passenger ferry service operated between Talaimannar and Danushukodi, but the Dhanuskodi Port was severely damaged by cyclones. Presently, India has completed developments at the Rameswaram Port and has obtained clearance from the Indian Government to commence a passenger ferry service between Mannar and Rameswaram.

To kickstart the project and conduct necessary assessments, Minister Nimal Siripala de Silva conducted a special visit to the port on August 4. During the inspection visit, the Minister also participated in a discussion to address project-related issues.

The Minister emphasized that the reconstruction of the Talaimannar Pier will rekindle the close ties between the two neighboring countries. He highlighted that the launch of the ferry service between Talaimannar and Rameswaram will offer affordable travel options for Sri Lankan pilgrims to India and foster bilateral trade by facilitating the exchange of goods.

Various officials, including SLPA Chairman Keith Bernard, Vice Chairman Gayan Algewattege, and representatives from the Sri Lanka Navy, were present at the event to support the endeavor. The reconstruction of the Talaimannar Pier marks a significant step towards enhancing connectivity and cooperation between Sri Lanka and India.

During his visit to the Eastern Province to attend the ‘Aluth Gamak – Aluth Ratak’ District Development Programme, Prime Minister Dinesh Gunawardena took the opportunity to have an interactive session with farmers in Kawantissagama, Trincomalee, over the weekend.

The Prime Minister’s visit was accompanied by Eastern Province Governor Senthil Thondaman and Members of Parliament Kapila Athukorala and Yadamini Gunawardena, who also participated in the engagement with the local farming community.

The government intends to re cultivate 11,000 acres of abandoned paddy lands before the end of this year in order to prepare for a potential food crisis, State Minister of Agriculture Mohan Priyadarshana De Silva said.

The State Minister pointed out that the program for harvesting abandoned paddy lands is being implemented through the Department of Agrarian Development, and the government has allocated Rs.420 million for this purpose.

He expressed these views Agust (03) during a press conference themed ‘Collective Path to a Stable Country’ held at the Presidential Media Centre (PMC).

State Minister Mohan Priyadarshana De Silva, further commented;

The export of rice has been temporarily halted by Pakistan and India in order to deal with a potential future global food crisis. Some nations are also experiencing a rice crisis as a result of India stopping the export of rice.

Therefore, as a country, we must likewise get ready to deal with this calamity. The government cannot improve the country’s agriculture industry alone. Support from everyone is necessary for that. As a result, the government has chosen to replant the nation’s abandoned paddy lands. Under the initial phase, the Department of Agrarian Development is working to cultivate 11,000 acres. The government has allocated 420 million rupees for this purpose.

The agricultural sector is responsible for 7.5% of this nation’s GDP. As an agricultural country; there is an opportunity to raise this contribution to the country’s GDP to a higher value. Developing the agricultural sector is another way to boost the national economy.

President Ranil Wickremesinghe has given many concessions for the farmers of this country. There are subsidies for fertilizers. The government offers farmers insurance free of charge. As a result, there is some increase in rice production in this country compared to the past. Additionally, necessary steps have been taken to streamline the farmers’ paddy purchasing mechanism.

The annual rice requirement of this country is about 2.4 million metric tons. This year, it is predicted that 2.7 million metric tons of rice will be harvested. As a result, it is feasible to maintain a surplus of 300,000 metric tons of rice.

Furthermore, I do not believe that the nation will experience a food crisis in future. Additionally, the President has issued directives prohibiting the release of rice reserves for beer manufacturing.

The government has focused on enhancing the cultivation of new crops in addition to expanding rice production. The budget declaration from President Ranil Wickremesinghe states that the program to bring contemporary technologies to the agricultural sector has already commenced.

The establishment of agricultural villages for young entrepreneurs is another ongoing initiative with the goal of orienting the youth community in the agricultural sector. Additionally, measures have been taken to allow youth access to government-owned land that is not being used for agriculture.

Also, the work of drafting the National Agriculture Policy with amendments is in the final stage. It will eventually be presented to the Cabinet. Through the National Agriculture Policy, it is possible to do a great deal for the advancement of the agricultural sector in this country.