In an unprecedented move, French President Emmanuel Macron embarked on a brief yet momentous visit to Sri Lanka on Friday night, July 28. This marked the first time a French President set foot on the island nation, following his tour of the South Pacific Region.

During his stopover in Sri Lanka, President Macron engaged in friendly and productive bilateral discussions with President Ranil Wickremesinghe. The talks lasted for an hour and fifteen minutes and were aimed at elevating the existing relations between the two countries, especially in light of the 75th anniversary of their diplomatic ties being celebrated this year, as stated by the President’s Media Division (PMD).

President Wickremesinghe expressed his admiration for France’s significant role in global affairs, particularly in areas such as climate mitigation, global debt restructuring, and matters concerning the Indo-Pacific region. On the other hand, President Macron recalled his recent conversations with his Sri Lankan counterpart in Paris during the Summit for a New Global Financing Pact. He reaffirmed France’s willingness and commitment to supporting Sri Lanka in its economic recovery.

As the fourth-largest creditor to Sri Lanka, France pledged its assistance in the debt restructuring process, aiming to contribute positively to the country’s economic situation.

Following the discussions, President Macron took to Twitter to express the shared vision between Sri Lanka and France for an open, inclusive, and prosperous Indo-Pacific. He emphasized the strength of their 75 years of diplomatic relations and declared the beginning of a new era in their partnership.

The talks between the two leaders focused on strengthening cooperation in various sectors, including politics, economics, tourism, climate change, sustainable development, and maritime activities. To commemorate the 75th anniversary of diplomatic relations, specific areas for further collaboration were identified.

These areas of cooperation encompassed the establishment of a school for maritime safety and security, the opening of a permanent office for the French Agency for Development (AFD) in Sri Lanka, the initiation of high-level diplomatic dialogues, cooperation in the education sector, and intensified efforts to combat human trafficking in the maritime safety and security sector.

The leaders also exchanged views on regional and multilateral issues in the current global context. President Macron expressed keen interest in collaborating with Sri Lanka during its upcoming chairmanship of the Indian Ocean Rim Association (IORA), of which France is a member. In response, President Wickremesinghe showed interest in the Indian Ocean Commission, where France actively participates.

President Wickremesinghe lauded President Macron’s timely initiative in organizing the event held in Paris from June 22-23, 2023, which he attended. He also confirmed Sri Lanka’s commitment to join the Paris Agenda for the People and the Planet, demonstrating the country’s dedication to global efforts for a sustainable future.

Accompanying President Emmanuel Macron for the bilateral discussions were esteemed members of the French delegation, including Mrs. Catherine Colonna, the French Minister for Europe and Foreign Affairs; Mr. Jean-Francoise Pactet, Ambassador of France in Sri Lanka and Maldives; Mr. Fabien Mandon, Mr. Walid Fouque, and Mr. Josue Serres, Advisors to the French President; Mr. Benoit Guidee, Head of Asia Department of the French Ministry of Foreign Affairs; Mr. Jonas Bayard, the Press Counsellor of the President of France; Philippe Vigier, State Minister for overseas territories; and Florian Cardinaux, Advisor of the French Minister of Foreign Affairs.

The Sri Lankan delegation accompanying President Ranil Wickremesinghe comprised Mr. Ali Sabri, Minister of Foreign Affairs; Mr. Sagala Ratnayaka, the Senior Advisor to the President on National Security and Chief of Staff; Mr. Saman Ekanayake, Secretary to the President; Ms. Aruni Wijewardane, Foreign Secretary; Dr. Nandalal Weerasinghe, Central Bank Governor; Dr. R.H.S. Samaratunge, Economic Advisor to the President; Ms. Shobini Gunasekera and Mr. Randula Abeyweera, Director-General/Europe & North America at the Ministry of Foreign Affairs of Sri Lanka, and Mr. Director Youth and Sustainable Development to the President.

As part of a crucial diplomatic mission, Japanese legislator Minister Hayashi arrives in Sri Lanka for a significant two-day official visit. During his stay, Minister Hayashi is set to hold pivotal discussions on bolstering bilateral relations with prominent Sri Lankan figures, including President Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena, and his counterpart, Ali Sabry.

Accompanying Minister Hayashi on this high-profile journey are several distinguished officials from the Japanese Foreign Ministry. Among them are Murakami Manabu, the Senior Foreign Policy Coordinator; Arima Yutaka, the Director General of Southeast and Southwest Asian Affairs; Endo Kazuya, the Director General of International Cooperation; and Okano Yukiko, the Deputy Press Secretary. The Japanese delegation, totaling 22 members, comprises other esteemed officials from the Japanese Foreign Ministry.

Beyond the crucial talks, the delegation will also seize the opportunity to visit one of the Japanese Official Development Assistance (ODA) sites in Sri Lanka. This visit underscores Japan’s commitment to exploring avenues of development cooperation between the two nations.

The visit holds the promise of fostering stronger ties and facilitating future collaborations between Japan and Sri Lanka in various realms of mutual interest.

1. The President of France, Emmanuel Macron on Friday night (July 28) undertook a brief ‘historic’ visit to Sri Lanka. Macron’s stopover at the island nation, a first by a French President, came after his visit to the South Pacific Region. President Ranil Wickremesinghe and President Macron have held friendly and productive bilateral discussions which lasted for an hour and fifteen minutes.
2. Prime Minister Dinesh Gunawardena has given directives to finalize the bank account opening process for the payment of ‘Aswesuma’ social welfare benefits by this weekend and take immediate action thereafter to disburse the payments to the beneficiaries. Issues regarding the ‘Aswasuma’ program and the problems related to particular areas were discussed at the Maharagama Divisional Coordination Committee meeting.
3. Sri Lanka has recorded over 120,000 tourist arrivals from 01 – 27 July , Minister of Tourism Harin Fernando revealed. A total of 123,503 tourist arrivals have been recorded for the month of July, he said, of which a majority has been identified as Indian nationals.
4. Two petitions were filed before the Supreme Court, seeking an order deeming the decision to reduce the interest rates paid when investing the funds of Employees Provident Fund (EPF) in treasury bills and bonds to 9% a violation of fundamental rights.
5. The Sri Lanka Japan Business Council expressed hope that with stability and economic recovery more Japanese trade and investments will take place new President Mahen Kariyawasan said. Expressed gratitude to Japan for extending support in bringing stability and supporting recovery with its active participation in Sri Lanka’s external debt restructuring
6. Investigations have found Rs. 12.2 billion worth of transactions related to bank accounts held by Sri Lankan Pastor Jerome Fernando. Additional Solicitor General Priyantha Nawana informed the court that the transactions were found following the examination of 11 bank accounts held by the controversial pastor.
7. A group of 62 Sri Lankan nationals have been deported from Kuwait, for working illegally without the required valid visas. The group was deported from Kuwait using temporary passports prepared by the Sri Lankan Embassy in Kuwait, a spokesman for the Embassy stated.
8. Minister of Education Susil Premajayantha has announced the date to commence the new school term for the academic year 2024. The new school term is scheduled to begin on February 21, 2024.
9. Agriculture Minister Mahinda Amaraweera said an investigation will be carried out to find out why the Veterinarian Research Institute which earns a lot of income and falls under the Department of Animal Production and Health had not been subject to an audit for many years. The comment was made in response to an inquiry raised regarding what action will be taken in connection with the financial fraud of Rs.15 million at the Veterinarian Research Institute.
10. Galle Titans, one of the prominent franchises in the Lanka Premier League has officially appointed the renowned actor Ranjan Ramanayake as their brand ambassador.

Reliable sources state that 30% of the revenue earned from Gold route and Silk route services are being given to the immigration welfare fund.

The fees for these services are exorbitant and not inline or competitive with other international “fast track” services. The reason is clear if our sources are correct, it is to do with this profit share.

This is an appalling situation,as that means these government servants are being paid to do their job for which they are already getting paid . The crucial question remains ,if this is the case is this payment legal ? What if other government servants also want to be paid profit shares to do their job ? Who has negotiated this ? Is the finance ministry aware of this? and does it not contravene the finance ministry circulars? If it is the case, is it not a misappropriation of public funds ? How much have they paid thus far ? Where else in the world are such payments made? These questions must be answered by someone.

The silk route and Gold Route are essential tools for sri lanka to attract high end tourism and business travelers. While this may not be very important for some officers it is definitely an important first impression for the country’s tourism and FDI sectors.

The immigration are the first impression of our country and they should be willing to even take customer service lessons if necessary . It is part of their job.

It was reported before that the CCTV cameras are not directly on the arrival and departure immigration desks, and the view is from a distance . Hopefully someone with authority is looking into these matters and verifying these facts to rectify these issues .

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

Showers or thundershowers may occur at a few places in Ampara and Batticaloa districts during the evening or night.

Mainly fair weather will prevail elsewhere over the Island.

Fairly strong winds about 40 kmph can be expected at times in western slopes of the central hills, Northern and North-Central provinces, and in Hambantota and Trincomalee districts.

By: Staff Writer

Colombo (LNW): The Sri Lanka Japan Business Council expressed hope that with stability and economic recovery more Japanese trade and investments will take place new President Mahen Kariyawasan said.

He expressed gratitude to Japan for extending support in bringing stability and supporting recovery with its active participation in Sri Lanka’s external debt restructuring

He was speaking at the Annual General Meeting of the Sri Lanka-Japan Business Council under the aegis of the Ceylon Chamber of Commerce was held recently.The Chief Guest was Japanese Ambassador Mizukoshi Hideaki..

“Japan has been a true friend for Sri Lanka,” said Kariyawasan and expressed appreciation to Ambassador Mizukoshi Hideaki, Deputy Katsuki Kotaro as well as Sri Lanka’s Ambassador in Japan Rodney Perera and Sri Lanka Japan Chamber of Commerce’s H. Tanaka.

Kariyawasam recalled that during President Ranil Wickremesinghe’s visit to Tokyo, the Council had a very informative business session organised by counterpart Japan Sri Lanka Economic Cooperation Committee.

He said the Japan Chamber of Commerce and Industry showed keen interest to further develop bilateral cooperation.

“They have assured no sooner the agreements are in place they will arrange a mission to Colombo. This is very encouraging for us,” said Kariyawasan who is the Managing Director of Andrew The Travel Company.

It was emphasized that the Expo 2025 in Osaka will be a good opportunity for Sri Lankan companies to showcase their products and services. “The Sri Lanka Japan Business Council will be working very closely with the authorities to make this event a success,” Kariyawasan added.

Apart from Kariyawasan who was elected as President, the AGM saw the election of Vice Presidents Ruwan Waidyaratne, Managing Director, Hayleys Advantis Ltd., Athulla R F Edirisinghe – Director, Hirohama Ceylon Ltd., Rohitha Mendis – Chairman, Prudential Shipping Lines Ltd., Chanaka Kariyapperuma – Proprietor, ASOL Traders, and Sarath De Costa – Chairman and Managing Director – Amano Lanka Engineering Ltd.

Committee Members are Brandix Apparel Ltd., (Muthukumaraswamy Raghuraman, Consultant), Dentsu Grant Ltd., (Neela Marikkar, Chairperson/MD), Heritage Teas Ltd., (Revanke De Silva, Director), Lanka Harness Ltd., (Rohan Pallewatta, Executive Chairman), Venora International Projects Ltd., (Sagara Gunawardena, Chairman and Managing Director), Spear International Ltd., (Shamil Mendis, Chairman and Managing Director) and Vidullanka PLC (Mohamed Amr, Manager – Finance and Administration).

By: Staff Writer

Colombo (LNW): Sri Lanka’s business confidence is tumbling on its slippery course, sliding perilously into the unknown – and taking a nation’s hopes along on an unbidden ride,” business magazine LMD reported in its latest edition.

News about how the domestic debt optimization framework (a.k.a. DDO) will unfold, an easing of monetary policy and the downward spiral in inflation have brought some respite to a beleaguered business community in the recent past.

But we have yet to see the effects of these events – and the burdens loom large LMD observed in its analysis of current and expected developments, including the disinflation process and benign inflation expectations in the domestic economy..

The Monetary Board of the Central Bank of Sri Lanka reduced its Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 200 basis points to 11 percent and 12 percent respectively in July – for the second consecutive month.

Meanwhile, the Governor of the Central Bank Dr. Nandalal Weerasinghe alluded to three key aspects that will be addressed in the debt restructuring process: firstly, discussions are underway regarding the restructuring of official bilateral debt; secondly, deliberations regarding the monies borrowed through sovereign bonds in commercial markets are ongoing; and thirdly, the focus is on optimising domestic debt.

By the end of June however, Sri Lanka had fulfilled only 33 out of the 41 trackable programme commitments under the IMF’s Extended Fund Facility (EFF), according to the ‘IMF Tracker’ maintained by Verité Research.

THE INDEX It is against this backdrop that the LMD-NielsenIQ Business Confidence Index (BCI) shed 10 basis points in July to register 93 – although this mark is five notches higher than the 12 month median (88) and almost twice as high as where it stood in July last year – i.e. 49.

After gaining ground in the preceding three months, the barometer headed south once again to below the 100 mark. The BCI has seen fluctuations since the beginning of this year with the index at its peak (108) in April.

SENSITIVITIES Financial sector volatility, the ongoing fluctuation of the value of the Sri Lankan Rupee and high taxes continue to fluster the business community.

In addition, the price of black gold rose to its highest level in nearly three months recently when US inflation data suggested that interest rates in the world’s largest economy were close to their peak. This could have implications for our forex outflows in the short term at least.

PROJECTIONS NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya cautions that “as the country struggles to maintain equilibrium, businesses and the people are still in a state of flux.”

In the last two months, we have maintained that “the burning question for the weeks ahead is whether the perceived pros will outweigh the cons – and if they do, we expect the BCI to stand firm and not fall below the psychologically important 100 mark.”

The verdict therefore, seems to be that we’re currently in negative territory – although we may see a reversal of sorts next month if the real benefits of lower inflation begin to filter through and there’s more good news on the debt restructuring front.

By: Staff Writer

Colombo (LNW): After becoming the best-performing currency in the first half of the year, the Sri Lankan Rupee has taken a dramatic turn, plummeting to become the worst-performing currency in Asia recently although it remains steady against the US Dollar at commercial banks in Sri Lanka today (July 28) compared to yesterday .

At Peoples Bank, the buying and selling rates of the US Dollar remain unchanged at Rs. 321.15 and Rs. 336.95, respectively.

According to Commercial Bank, the buying rate of the US Dollar has reduced from Rs. 323.41 to Rs. 321.66, while the selling rate has also reduced from Rs. 334 to Rs. 333.

At Sampath Bank, the buying and selling rates of the US Dollar remain unchanged at Rs. 324 and Rs. 334, respectively

However the currency has seen a drop of over 6% in just one month, marking its longest daily losing streak in nearly five years.

This is a significant departure from its laudable performance in the first six months of the year, during which it saw a rise of 19%. Forecasts indicate that the currency may further depreciate by 8% by the end of the year.

The reasons for this set back were the uncertainty about the impact of head winds arisen out of market sentiment of further declining of policy interest rates of the central bank and the removal of import restrictions on majority of essential and non-essential items. leading to the increase in demand for dollar.

The demand for dollars in the country has surged as the nation, currently facing a crisis, has begun to ease import restrictions on a wider range of goods, including tiles and medical supplies.

This increase in demand for imported goods has put pressure on the already struggling rupee. Adding to this, the nation’s benchmark interest rate was also cut for the second time in the month as disinflation accelerated, a move that further impacted the currency.

Another factor was the Central Bank’s limited intervention in the foreign exchange market activities, financial analyst said.

As inflation cools down rapidly, the trade balance is expected to become more negative. This may lead to further reductions in the interest rate. The fluctuation of the rupee is being attributed to banks covering positions. In light of the volatile situation, the central bank’s governor has advised businesses to use hedging instruments and make decisions based on inflation expectations rather than the exchange rate.

When compared to other Asian currencies, the Sri Lankan rupee’s performance stands out starkly. For instance, the Pakistani rupee recently hit a new all-time low against the US dollar in the interbank market, making it the second-worst performing currency in Asia.

However, the Sri Lankan rupee’s dramatic shift from being the best to the worst in the region underscores the severity of the economic challenges the nation is grappling with at present financial analysts said.

The police have fired tear gas and water cannons in Borella Sahaspura area to disperse the protest march organized by several parties including the Joint Development Officer Center and the Labor Struggle Center under the name of Working People’s Joint Protest which started near the Colombo National Hospital today (28).

The protest was organized to protest against the non-grant of life allowance of 20,000 rupees, non-resolution of civil servants’ professional problems, pension cut, unfair labor law amendment etc.

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