Colombo (LNW): SJB MP Dr. Harsha De Silva has been nominated as the Chairman of the Committee on Public Finance (CoPF).
The Committee of Selection of the Parliament decided yesterday (07) to nominate the SJB MP as the CoPF Chief in the fourth session of nineth Parliament.
This nomination has been made in accordance with Standing Orders 121, and the first meeting of the Committee on Public Finance will be held this afternoon under the chairmanship of Silva.
He also held the position of Chairman of the Committee on Public Finance in the third session of the Ninth Parliament.
Colombo (LNW): The cyclonic storm “BIPARJOY” over southeast Arabian Sea was intensified into a very severe cyclonic storm and centred at 1430 hours of June 7 near latitude 13.1 °N and longitude 66.3 °E. It is likely to move nearly northwards during next 24 hours, later to move nearly north-northwest wards, warned the Natural Hazards Early Warning Centre of the Department of Meteorology.
Meanwhile, showers or thundershowers will occur at times in Western and Sabaragamuwa provinces and in Galle and Matara districts and fairly heavy showers above 75mm are likely at some places in the Sabaragamuwa Province and in Galle, Matara and Kalutara districts, said the Department of Meteorology in its daily weather forecast today (08).
Several spells of showers will occur in North-Western province and in Jaffna district.
Showers or thundershowers will occur at a few places in Uva and Central provinces and in Ampara and Batticaloa districts during the evening or night.
Strong winds about (40-45) kmph can be expected at times in Northern and North-Central provinces and in Hambantota, Puttalam and Trincomalee districts.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine weather:
Condition of Rain: Showers or thundershowers will occur at times in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds: Winds will be south-westerly over sea area around the island and speed will be (25-35) kmph.
Wind speed may increase up to (50-60) kmph at times in the sea areasoff the coast extending from Puttalam to Trincomalee via Mannar and Kankasanthurai and from Hambantota to Pottuvil. Wind speed may increase up to (40-50) kmph at times in the sea areasoff the coast extending from Puttalam to Hambantota via Colombo and Galle.
State of Sea: The sea areasoff the coast extending from Puttalam to Trincomalee via Mannar and Kankasanthurai and from Hambantota to Pottuvil will be rough at times. The sea areasoff the coast extending from Puttalam to Hambantota via Colombo and Galle will be fairly rough at times.
There is a possibility to increase swell waves (about 2.0 – 2.5 m) in the sea areas off the coast extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota.
Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
The Excise Department has made the decision to take strong action against a group of its officers who were allegedly involved in a dispute at a restaurant located within the One Galle Face Mall. Commissioner of Excise and Department Spokesman, Kapila Kumarasinghe, announced during a media briefing that an expedited investigation is currently underway to identify and hold accountable those responsible for the heated situation. The department will then proceed with appropriate disciplinary measures, including potential work suspensions or other suitable punishments.
Kumarasinghe confirmed that the group of 15 individuals involved in the incident belonged to the Narcotic Unit of the Excise Department and were reportedly under the influence of alcohol at the time.
The Fort Police are actively conducting further investigations into the matter, as stated by Police Spokesman SSP Nihal Thalduwa. Statements are being recorded from all relevant parties involved in the altercation.
The incident took place on June 5, when the group allegedly engaged in a dispute at a restaurant within the mall, leading to a violent assault on the Head Chef of the establishment. The Head Chef, along with an Excise official who sustained injuries during the altercation, was subsequently admitted to the Colombo National Hospital.
The Excise Department is committed to maintaining discipline and accountability among its officers and ensuring that such incidents are thoroughly investigated and appropriate actions are taken.
Colombo (LNW): In the wake of the recent upsurge cases in little-known respiratory virus called HMPV spreading in the US, Sri Lankan Health authorities said they keep a close eye on the new developments of the virus and have gone on alert.
Dr. Anwar Hamdani from the Health Ministry said the Ministry has always been on alert on any new disease spreading in a foreign country as it could pose a threat to Sri Lanka. “As far as the virus spreading in the US is concerned, we are monitoring the situation,” he said.
Meanwhile, another official from the Health Ministry said “Although it has not reached the alarming stage outside US, people should not panic. However, there is always a possibility of spreading it beyond borders as we witnessed in the COVID-19 pandemic.”
The Human metapneumovirus or HMPV is a viral infection, and primarily affects the upper respiratory tract. The virus first discovered in 2001, is in the Pneumoviridae family, along with the more commonly known respiratory syncytial virus or RSV.
According to the reports by the Centers for Disease Control and Prevention (CDC), at its peak in mid-March, nearly 11 per cent of tested specimens were positive for HMPV in the US, a number that’s about 36 per cent higher than the average pre-pandemic levels.
The virus causes symptoms similar to that of a cold, the flu, and COVID-19 like a lower lung infection, hacking cough, runny nose, sore throat and fever.
Normally, young children and the elderly are the ones who end up with the most severe illness after contracting HMPV, as they are the most vulnerable to the virus. Their symptoms are treated directly by doctors in hospitals, as there’s no vaccine or antiviral drug for HMPV.
The HMPV virus is likely to spread from an infected person to others through close personal contact, such as coughing, sneezing, touching or shaking hands, and touching objects or surfaces that have the virus on them.
The primary approach to prevention involves good hygiene, such as covering the mouth and nose when coughing or sneezing and frequent handwashing.
Commenting on the disease, GMOA Media Spokesman Dr. Chamil Wijesinghe said that although the virus has not reached the emergency level, it is vital that Sri Lanka tightened its surveillance on entry points, i.e, airports and harbours to prevent any infected person from entering the country.
“The WHO has not yet declared it as emergency. Still, there is a spike in cases in the US. Nevertheless, it is better that Sri Lanka keeps a close eye to avert a devastating catastrophe like COVID-19 pandemic.
The Ministry of Health in Sri Lanka has confirmed the detection of two cases of Monkeypox, one of which involves a child. According to the Director General of Health Services, a mother and her daughter, who had recently returned from overseas, tested positive for the virus. The infected individuals were identified upon arrival at the Bandaranaike International Airport in Katunayake, following their journey from Dubai.
Presently, the affected individuals are receiving medical treatment at the National Institute of Infectious Diseases (IDH). The Ministry of Health is taking immediate measures to contain the spread of the virus and ensure the well-being of the patients.
This marks the first incidence of Monkeypox reported in Sri Lanka since November 2022 when similar cases were detected among Sri Lankan nationals who had also arrived from Dubai. Monkeypox is categorized as a viral zoonosis, meaning it is transmitted to humans from animals. The symptoms are comparable to those observed in smallpox patients, although the clinical severity is generally lower.
The Fort Magistrate’s Court has issued a significant order restraining the convenor of the Inter-University Students’ Federation (IUSF) and 12 other individuals from organizing protests that cause inconvenience to pedestrians and vehicular movement. The police have confirmed the issuance of the order, which also prohibits the protesters from entering specific locations, including the President’s Office, the President’s House, the Finance Ministry, and the Galle Face area.
This order aims to maintain public order and ensure the smooth flow of daily activities in the designated areas. By restricting the disruptive protests, the court seeks to mitigate any potential disturbances that could arise from such activities. The order serves as a preventive measure to safeguard public safety and preserve the functioning of key government institutions.
The Fort Magistrate’s Court’s decision reflects the importance of balancing citizens’ right to protest with the need to maintain peace and stability in the affected areas. The ruling emphasizes the responsibility of protest organizers to consider the impact of their actions on the general public and the overall functioning of essential government offices.
Colombo (LNW): The apparel sector stands to lose USD 494 million if Sri Lanka loses the GSP plus trade concession offered by the European Union.
Secretary General of the Joint Apparel Association Forum Sri Lanka, Yohan Lawrence, said that with the current GSP+ regulation set to expire by the end of 2023, it is imperative that Sri Lanka takes measures to secure concessionary access to the European market.
“Securing GSP+ depends on Sri Lanka upholding the already ratified conventions spanning human rights, labour, environment and governance. If Sri Lanka is to lose GSP+, the combined loss for the apparel sector is estimated at USD 494 million, which is 79% of the estimated trade loss,” Lawrence said
Sri Lanka’s overall economic outlook shows slow but steady signs of recovery, especially after the Sri Lankan Government reached a staff-level agreement with the IMF for a 4-year Extended-Fund Facility programme (EFF) earlier this year. This is critical to inspire investor confidence and attract much-needed foreign direct investment (FDI) to the country.
With that being said, the country was able to achieve over USD 1 billion[1] in March in exports for the first time in 2023;
however, in apparel exports specifically, there has been a 15-25% drop in orders as a result of the global economic slowdown caused by the increase in interest rates to combat high inflation in the West specifically in major exporting countries including the US, UK and Europe.
Recent data shows apparel exports declining by 14.95 per cent Year-on-Year (YoY) to USD 1.18 billion in the first quarter of this year compared to the same period last year, which is the lowest since the first quarter of 2013. The industry projects it could be five to six more months before it sees a recovery in global demand.
GSP+ is a trade incentive granted by the European Union (EU) to developing countries, eligible to import items to the EU market, guaranteeing increased trade with the EU.
It has also been observed that the EU’s GSP+ helps developing countries alleviate poverty by generating employment across vulnerable communities specifically, adding skill, knowledge and technological know-how to a pool of resources and creating jobs based on international values and principles.
Latest data shows that EU imports from Sri Lanka amounted to about €2.55 billion in 2021, of which approximately 54% benefitted from reduced tariffs under the GSP+ arrangement. Moreover, 85% of Sri Lanka’s current exports are eligible for tariff reductions under the GSP+ scheme[3]. Such preferential access granted through GSP+ provides Sri Lankan apparel exporters with an advantage of diversification and exploring new export opportunities.
Colombo (LNW): Sri Lanka’s bank may need a 1.4 trillion rupee capital injection after bad loans from a currency crisis and debt -restructure hit their balance sheets, according to an analysis by the International Monetary Fund.
Private sector borrowing from the banking sector continued its dip in April amidst the prevalent high interest rate regime and contraction in the economy.
As per the Central Bank data, outstanding credit extended to the private sector declined by Rs. 43.2 billion in April 2023 to Rs. 7.1 trillion.
Credit to the private sector from the banking sector has been decelerating since June 2022 with the biggest drop of Rs. 107.6 billion in March due to high interest rate environment and downturn in the economy according to analysts.
As at December 2022 the outstanding amount was Rs. 7,426 billion (a peak of Rs. 7.6 trillion in August) as against Rs. 6,981 billion in 2021.
However the Central Bank said last week that the credit to the private sector is expected to gradually increase with the easing of monetary conditions and rebound in economic activity.
The banking sector debt increased by 62.5 percent to Rs. 8,525.7 billion at the end of 2022 from Rs. 5,247.9 billion in 2021 due to the increased debt to commercial banks and the Central Bank. Meanwhile, nonbank sector debt also increased by 27.8 percent to Rs. 6,164.1 billion at the end of 2022 compared to Rs.4,822.1 billion at the end of 2021.
Of the total domestic debt, the share of the banking sector debt increased to 56.7 percent by the end of 2022 from 47.3 percent at the end of 2021 whereas the share of the non-banking sector debt declined to 41.0 percent by the end of 2022 from 43.5 percent by the end 2021.
The medium and long term domestic debt stock increased by 24.2 percent to Rs. 9,882.1 billion by the end of 2022 from Rs. 7,957.4 billion recorded at the end of 2021.
However,the share of medium and long term debt in the total domestic debt stock further declined to 65.7 percent in 2022 from 71.7 percent at the end of 2021 due to the continued dependency on short term instruments for deficit financing in 2022 than medium and long term financing.
The share of Treasury Bonds of the total outstanding domestic debt stock declined to 57.9 percent at the end of 2022 from 62.8 percent at the end of 2021.
Key downside risks include a slow debt restructuring process, limited external financing support, a sharper global slowdown, and a prolonged recovery from the scarring effects of the current crisis. A lower-level external trade equilibrium could have contagion effects on domestic trade, economic activity, jobs, and incomes.
This and adverse effects from revenue-mobilization efforts could worsen poverty projections. The financial sector needs to be managed carefully, given rising non-preforming loans and large public sector exposures.
Dhammika Perera, President and Founder of DP Education, says that through the DP Education program, the obstacles that existed until now due to financial reasons have been completely removed while entering education.
“Money has been an obstacle to education for so long. We have completely eliminated that obstacle. Today, a YouTube package costs around 500 rupees per month. We provide the opportunity to become a software engineer of your choice. I think all of that can be achieved by December 2023. That’s why there will be no obstacle to learn IT from here on.
I am trying as much as possible to make it possible to learn this through the mobile phone. We are looking at how far we can program this mobile phone, and we are on it. There may be impossible opportunities, but we will install 331 centers within the next 3 years, one for each divisional secretariat in Sri Lanka called AI Coding and Robotics Campus. I hope that the society will understand that the debt burden of this country is not a big deal any more.”
Dhammika Perera said this while participating in the awarding of prizes to the winners of the recently held ‘DP Education Digital Thoran’ competition.
The Cabinet has decided to adopt a lenient policy in including previous offenses and minor offenses in the police clearance report to be obtained while leaving the country for foreign employment.
This approval has been given according to a proposal presented by the Minister of Public Security Tiran Alles to the Cabinet.
It is stated that the Foreign Employment Minister Manusha Nanayakkara has informed the Minister of Public Security about this as they have not been able to get foreign employment opportunities due to the inclusion of minor offenses in the police report required to leave for foreign employment.
Accordingly, the Minister of Public Security, Tiran Alles, has taken the advice of the Attorney General in this regard and has taken steps to prepare a new system.
According to the new system, been decided not to include the cases thus assigned in the police report regarding dishonest use under Section 378 of the Penal Code, criminal breach of trust under Sections 389 to 392 of the Penal Code, cheating under Sections 400 to 403 and Poisons, Opium, under the Dangerous Drugs Ordinance, before the Magistrate’s Court. It was also reported that in the event that a person has been acquitted from a legal matter or has been released from a legal matter, it is also not necessary to include it in the police clearance report.
The minister also emphasized that offenses under all acts aimed at ensuring national security and offenses under the Prevention of Terrorism Act will definitely be included in the police report.
