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BOC announces veteran banker Russel Fonseka as next GM /CEO

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BOC announces veteran banker Russel Fonseka as next GM /CEO.
Bank of Ceylon (BoC), the No 1 bank in Sri Lanka has announced Mr. Russel Fonseka as it’s next General Manager/ Chief Executive Officer. Having joined the BOC in 1990, he has notched up 33 years of service with the banking giant and is currently its Additional General Manager and the CFO.

He is to succeed Mr. K.E.D. Sumanasiri, who will be retiring from the bank on 13th January 2023 after a successful stint as the General Manager/CEO. Mr. Russel Fonseka is a career banker who over the years has successfully steered and given leadership to the various divisions that came under his purview. He has held the positions of Chief Financial Officer, Head of Finance and Planning, Head of International, Treasury and Investments, Head of Retail Banking and Head of Corporate and Offshore Banking. The exposure to many areas of
banking would be a distinct advantage as he faces the task of steering the premier bank in Sri Lanka during what looks to be the most turbulent period the country and the globe has faced in recent times. He holds a B.Sc (Special) degree in Business Administration from the University of Sri Jayawardenepura and a MBA from the University of Southern Queensland, Australia.

He has completed the Advanced Management Programme at Harvard Business School, USA as a part of grooming of selected individuals under Bank of Ceylon’s succession planning. He is a senior fellow member of the Institute of Bankers of Sri Lanka and a fellow member of the Institute of Chartered Accountants of Sri Lanka.

He serves as a member of the Sri Lanka Accounting and Auditing Standards Monitoring Board and is the immediate past president of the AAT Sri Lanka. He is a director on the boards of a number of Bank of Ceylon’s associate and subsidiary companies.

Whilst steering the country’s largest bank as it navigates through the turbulent conditions, Mr.Fonseka’s task will be to help Bank of Ceylon elevate itself to the next level and utilize its capacities and capabilities to the fullest in assisting in the nation’s economic revival and development-a call to utilize his competencies and acumen to the fullest.

Ambassador Colonne presents Letters of Credence to President Sisoulith of the Lao People’s Democratic Republic at Vientiane

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The Ambassador of Sri Lanka to the Kingdom of Thailand and Permanent Representative to the United Nations Economic and Social Commission for Asia and Pacific (UNESCAP), C.A. Chaminda I Colonne presented Letters of Credence to the President of the Lao People’s Democratic Republic, Thongloun Sisoulith, at the National Assembly, at Vientiane, as the Ambassador Extraordinary and Plenipotentiary of Sri Lanka to Lao PDR on 10 November, 2022.

Fourteen newly appointed Ambassadors from the Mexico, Qatar, Italy, Algeria, Israel, Norway, Maldives, Spain, Iran, Luxembourg, Bahrain, Belgium, Venezuela, Austria with Ambassador Chaminda Colonne, who are concurrently accredited either from Bangkok or Hanoi also presented their Letters of Credence to President Sisoulith.

After warmly welcoming and congratulating the newly appointed Ambassadors, President Sisoulith extended warm best wishes to all Heads of State, thanked for all support given to Lao PDR, outlined his country’s achievements in Sustainable Development Goals and conveyed hope that newly appointed Ambassadors would further strengthen relations, friendship and cooperation with Lao.

Ambassador Colonne conveyed warm greetings from President Ranil Wickramasinghe of  Sri Lanka to President Sisoulith and assured to consolidate relations with the Lao PDR, based on Buddhist religious values. She also extended an invitation to President Sisoulith to visit Sri Lanka. President Sisoulith extended sincere best wishes to the President Ranil Wickramesinghe and recalled his visit to Sri Lanka in the past.

Ambassador Colonne also had fruitful bilateral discussions with the Deputy Minister of Foreign Affairs Phoxay Khaykhamphithoune, Deputy Minister of Industry and Commerce Manothong Vongxay and the Deputy Minister of Information, Culture and Tourism Phosy Keomanivong on promoting relations and cooperation between the two countries in the fields of political, socio-cultural, trade, economic, investment, tourism etc. and enhancing people to people contacts.

Ambassador also paid courtesy calls on Director General of Protocol Amphay Kindavong, and the Director General of Asia Pacific and Africa Department, Viroth Sundara, of the Ministry of Foreign Affairs of Lao PDR, and had discussions with the President of Lao National Chamber of Commerce and Industry, Xaybandith Rasphone, Director General of Lao Front for National Development, Bounthavy Phonethasine, and the President of the Lao Association of Travel Agents Somphong Deviengxay. Sri Lanka Honorary Consul in Lao PDR Manilay Thiphalansy facilitated the Ambassador during her stay in Vientiane.

Ambassador Colonne paid homage to President of Central Buddhist Fellowship Organization Most Venerable MahaBounma Simmaphome, Chief Monk of the Sisaket temple Venerable Mahavet Masenai, Vice President of Central Buddhist Fellowship Organization and Chief Monk of the Ongtu temple of Lao Most Venerable Phuangphaserd Phoumavong. They conveyed their highest blessings to the newly appointed Ambassador and assured their commitment to consolidate Sri Lanka-Lao Buddhist and religious relations. The Ambassador also met members of the Sri Lankan community who live and work in Lao PDR at the Sri Lanka Honorary Consulate in Vientiane.

Embassy and Permanent Mission of Sri Lanka

Bangkok

15 November, 2022

“Come Visit the Sapphire Capital of the World”- Ambassador Dr. Palitha Kohona at the CIIE International Jewellery Summit, Shanghai

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Ambassador Dr. Palitha Kohona who was the keynote speaker at the CIIE International Jewellery Summit on 10 November, 2022 urged participants attending the event to visit Sri Lanka not only to satisfy their dream of purchasing a gem from the island’s fabulous harvest of precious stones but also to enjoy its incomparable tourist attractions and fabled tourist attractions. He stated that kings, queens and princesses continue to adorn themselves with Sri Lanka’s fabulous gems, while the biggest ones are on display at museums.

He furter stated that Sri Lanka has been producing a wide range of valuable coloured stones for millennia and was continuing to do so. The motherland was nowhere near to being exhausted. Today, Lanka is recognised as the blue sapphire capital of the world.

The event was well attended by the Chinese industry, including representatives of the government regulatory bodies and the Shanghai Gem and Jade Exchange. Among the speakers were Shanghai People’s Government Shu Guiyu, Chairman of China Council for Brand Development Liu Pingjun,  and among the key international speakers (on line) were  Chairman of Confederation Internationale Common Standards Gaetano Cavalieri, who spoke extensively on the Blue Books, President Coloured Stone Association Clement Sabbagh and Chairman of ASEAN Gem and Jewellery Association among others.

Embassy of Sri Lanka

Beijing

15 November, 2022

SL Women’s Rugby Captain Dulani Pallekondage goes missing!

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Reports emerge that Sri Lanka Women’s Rugby Captain Dulani Pallekondage has gone missing while participating at the Asia Rugby Seven’s Series Tournament in South Korea.

Learning her disappearance, the Women’s Rugby Team Manager has informed the Police through officials of the Korea Rugby Union, and the Namdong Police in Incheon, SK launched an investigation into the disappearance of the SL Women’s Rugby Captain.

Both SL men’s and women’s rugby teams that contested the tournament are set to leave SK from Incheon International Airport at around 11.30 am, and the Korean Police have said that they would do their best to find Pallekondage’s whereabouts before the group leaves the country.

The first final match between SL and Hong Kong ended at about 1.00 pm Sri Lankan time, and the SL players were seated to watch the men’s third match. Both teams had been to the players’ lounges thereafter and Captain Pallekondage had sat to appear for a briefing, at which she was reported to have disclosed the reason behind the team’s defeat and the wrongdoings that contributed to it.

Following the prize giving ceremony, the Team Manager had called for the Team Captain twice in Sinhala, urging her to get in to the team bus, but Pallekondage was nowhere to be found.

About an hour later, the team bus carrying members of the two teams left the stadium for their residing hotels, and the managers of both the women’s and men’s teams stayed at the stadium assisting the Police and Korean Rugby officials in search of Pallekondage.

MIAP

Former MP Hirunika granted bail!

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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

Government to introduce public sector transformational reforms

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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.

UDA unveils One-Stop-Shop unit to promote rapid approval for development

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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.

Addressing food insecurity and malnutrition: Religious places to turn into Food Exchanges

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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.)

Food wasted in massive quantities; could be used to feed the needy

Around the world, including Sri Lanka, cooked and uncooked food is wasted in massive quantities. According to the UN report – the State of Food Security and Nutrition in the World 2018 – Global hunger continues to rise, 821 million people are suffering from hunger, and over 150 million children are stunted. The food is lost or wasted throughout the supply chain from agricultural production up to household consumption.

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.

DailyFT

Cannabis cultivation can attract USD 2 bn within 2023 alone

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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

SLT Group records resilient for Q3 overcoming external impacts

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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.