By: Staff Writer

Colombo (LNW): Sri Lanka’s State owned Enterprises in strategic sector links to day to day activity of the people are set to undergo reforms and other public enterprises engaged in commercial activities face performance optimization more efficiently and effectively under public private ownership, a former finance minister disclosed.

Majority of these entities are inefficient and wasteful, but now the government is determined to change things with SOE restructure plans moving even more SOEs into competitive markets.

These 527 SOEs and 52 of them are identified as strategically important will be operated with private sector investment, generate revenues for the state, reduce the administrative burden on the state, and distribute ownership partially and management more widely to the private sector, former finance minister Ravi Karunannayake said.

The restructure tool is used to improve their financial and operational performance and to make them operate on the strength of their balance sheets, he pointed out adding that measures were also taken to reduce the flow of public funds to SOEs.

All these structural measures will enable Sri Lanka to strengthen the governance of SOEs and make them financially viable while alleviating their burden on public finances.

He suggested that Sri Lanka should follow the Temasek model of Singapore which is operated on a competitive basis, where the Government has no intervention in business.

He emphasized that according to official data 39 of the 52 strategically important public institutions are making profits while 13 of them are still making losses.

The losses incurred by 13 public institutions currently amount to Rs 1,029 billion while the profits made by the 39 enterprises are at Rs 218 billion, he said.

He also highlighted that the annual loss made by the public institutions is more than Rs 811 billion, adding that only Rs 28 billion have been paid by the profit-making public institutions as taxes to the treasury.

The professionals running the business raising the revenue and make profits as same as in a private company and the work principles is set right from the beginning to be competitive.

He categorically stated under this set-up there is privatization – as in a partial or full sale of assets – is not the only option for SOE reform.

For instance, there are other options like the vesting of performance and management in private sector contracts, Public-Private Partnerships (PPPs), holding companies, listing on the stock market, Employee Stock Ownership Plans (ESOPs), etc.

There is no single model. It is also important to follow Sri Lanka’s past experience with SOE restructuring – both positives and failures – rather than sticking to one and only procedure, he explained.

Therefore, enhancing the low level performances of SOEs by optimization procedure is essential whilst ensuring transparency and accountability at this difficult juncture of trying to recover from economic crisis, he added.

In addition, as part of its IMF program commitments, Sri Lanka is devising a comprehensive strategy to restructure the balance sheets of some key SOEs, notably CPC, CEB, RDA and Sri Lankan Airlines (this strategy needs to receive cabinet approval by June 2023).

By: Staff Writer

Colombo (LNW): High-Level Technical Team of eight professionals from the Federal University of Viçosa, Federal University of Sao Carlos and the Brazilian Cooperation Agency (ABC) is scheduled to undertake a technical visit to Sri Lanka with a view to providing Brazilian Technical Assistance for the development and capacity building of the Dairy and Sugarcane industries in Sri Lanka, from 09 to 21 June 2023.

The Technical Team is scheduled to undertake field visits and inspection tours in Udawalawe, Kandy, Mawanella and Kurunegala etc. to identify problems associated with the Dairy and Sugarcane industries and to provide technical solutions to increase capacity and the production of the two industries in Sri Lanka.

In order to finalize the programme and the other arrangements of the visit, the Ambassador of Sri Lanka to Brazil, Sumith Dassanayake had a meeting with Nelci Peres Caixeta, General Coordinator for Technical Cooperation for Asia, South Africa, Middle East and Oceania of the Brazilian Cooperation Agency (ABC) of the Ministry of Foreign Affairs of Brazil, on 25 May 2023 at the ABC headquarters in Brasilia. The Ambassador also discussed on the possibility of expanding Brazilian Technical Assistance to other areas in Sri Lanka, as well.

The First Round of Political Consultations between Sri Lanka and Brazil was held on 28 November 2022, under the Memorandum of Understanding on Political Consultations between the two countries signed on 07 March 2011, and during the Political Consultations, Ambassador Sumith Dassanayake and the other Senior Officials of the Sri Lankan side requested the Brazilian delegation to expedite the process of providing Brazilian technical assistance to Sri Lanka.

In Brazil sugar mills traditionally use alcohol bagasse (a by-product of the process) to produce heat and energy by the cogeneration system, also known as combined heat and power (CHP).

Some Brazilian plants produce sufficient energy for consumption and sell the surplus bioelectricity produced. In 2018, 54% of the Brazilian plants exported 2.5 GWméd to the National Interconnected System (NIS), which accounted for 3.9% of the national electricity matrix in this period (EPE, 2018).

In terms of bioelectricity generation, despite the potential of straw, vinasse, and filter cake, there is an underutilization of these by-products of the sugar and alcohol production process. Other regional bioenergetics have also been underutilized, such as manure, sludge from sewage treatment plants, and the organic fraction of the urban solid waste.

However, it is difficult to synchronize these resources owing to the number of actors, companies, exchanges, and regulations involved in their generation. In this sense, the dynamics of industrial symbiosis (IS) can contribute to the development of a collaborative network because it involves industries (or sectors) traditionally separated in a collective approach to obtain competitive advantages, involving the physical exchange of materials, energy, water and/or by-products.

By: Staff Writer

Colombo (LNW): China reiterated that as the country of “Rising Sun ”, it will continue to assist Sri Lanka to successfully overcome the social economic issues and to develop the country addressing present economic woes.

Chinese Vice Minister of Foreign Affairs Sun Weidong has assured that China, a longstanding ally of Sri Lanka, will always stand by the island nation’s sovereignty and its political and socioeconomic development.

Weidong called on Prime Minister Dinesh Gunawardena at the Temple Trees today (30 May), during which he assured that China will increase investments in several areas, including agriculture, trade and commerce and ports and infrastructure development.

Moreover, he also noted that China will continue to provide economic assistance, while also supporting Sri Lanka’s debt restructuring programme.

The Vice Minister also expressed his deep appreciation to Sri Lanka’s adherence to the One China Policy, despite pressures from many quarters.

Meanwhile, speaking on the shared Buddhist relations between the nations, Vice Minister Weidong revealed that China has taken the required measures to establish a strong cooperation with Sri Lankan Buddhist associations, furthering their religious ties.

Premier Gunawardena expressed his gratitude towards the Chinese Government, for the help extended during both natural calamities such as the Tsunami and the COVID -19 pandemic, and the ongoing economic crisis.

Speaking with regards to the humanitarian and medical aid received during the COVID-19 pandemic, the Prime Minister acknowledged, with gratitude, the various shipments of the Sinopharm vaccine, medical masks, COVID-19 test kits and other related equipment sent to battle the pandemic, which, according to Gunawardena, further strengthened the solidarity between the two countries.

Referring to the recent visit of the Governor of the Yunnan Province, Gunawardena also expressed confidence that the fruitful discussions held during the visit in question would enhance cooperation in the agriculture sector, adding that China could invest in agricultural projects.

Both sides agreed to enhance their cooperation in the fields of transport, power and other infrastructure, industrial parks, and manufacturing industry etc.

Sri Lanka announced the resumption of work of the Colombo Port City Project and expressed the willingness to facilitate and support the implementation of this project and to cooperate with Chinese companies to promote major projects.

The two countries agreed to hold the third round of the China-Sri Lanka Free Trade negotiations as early as possible and work towards concluding the negotiations at an early date with a view to enhancing the bilateral trade and economic cooperation.

The two sides agreed to build on the previous work on a China-Sri Lanka Free Trade Agreement by negotiating a trade agreement which would include economic cooperation, trade in goods and services and investment.

By: Staff Writer

Colombo (LNW): Sri Lanka and Japanese business councils have agreed in principle to facilitate Japanese entrepreneurs to directly interact with Sri Lankan entrepreneurs in a much focused manner in the space of Tourism, FDIs, Trade and Export, etc.

Sri Lanka Japan Business Counciland the Japan Sri Lanka Economic Cooperation Committee will be jointly working towards Sri Lanka’s economic revival and promote trade, investment and tourism.

This was revealed on the sidelines of the visit of President Ranil Wickremesinghe to Japan last week and the round table meeting “Sri Lanka’s Economic Revival and Opportunities for Japanese Enterprise.

The Ceylon Chamber of Commerce-affiliated Sri Lanka Japan Business Council President Mahen Kariyawsan met his counterpart – Japan Sri Lanka Business Co-Operation Committee (JSLBCC) Chairman Fumihiko Kobayashi and invited them to visit Sri Lanka in the fourth quarter of 2023.

JSLBCC Secretary General Kazuto Sasaki, Itochu Corp. Chief Representative Mikinaga Hotta, Japan Chamber of Commerce and Industry representatives Masazumi Nishizawa and Katzuto Sasaki also participated in the meeting.

The Sri Lanka Japan Business Council and the Japan Sri Lanka Economic Cooperation Committee was established in 1979 and has had 19 joint committee meetings in Japan and Sri Lanka. Their main objectives are to promote trade, investment and tourism between Sri Lanka and Japan.

It is extremely necessary to generate export revenue for the country at this needy hour and the expectation of the event is to pave the path for Japanese entrepreneurs to directly interact with Sri Lankan entrepreneurs in a much focused manner in the space of Tourism, FDIs, Trade and Export, etc.

It has been further reiterated the importance of initiative taken and support extended by Sri Lankan Embassy in Japan to explore more market opportunities for Sri Lankan entrepreneurs.

The business leaders of the two countries have also agreed to ease the difficulties that can be encountered by Sri Lankan entrepreneurs expecting to enter the Japanese market.

These bottlenecks included quality standards, consistency in supply and quality, expected high standard packaging and product description, level of professionalism, trust and transparency that should be demonstrated to them, etc.

Sri Lankan Embassy in Japan is geared to even assist the Sri Lankan potential exporters with required translations of their product brochures and other communications and facilitation of explanations required for samples of products requested by Japanese buyers and even communicate back their feedback at the initial stages of interactions.

The Sri Lanka business council will explore the opportunities in the Japanese market for various products and services including ICT and tourism.

It has been revealed there are many Japanese investors interested in investing in Sri Lanka and policy consistency is a key factor in decision making and port city project opens new business opportunities for Sri Lanka.

By: Staff Writer

Colombo (LNW): Advantis, a leading Sri Lankan firm and Cordelia Cruises have partnered to unleash the ultimate cruising experience in Sri Lanka, company officials said.

The transportation and logistics arm of the Hayleys Group, Advantis, announced a groundbreaking partnership with India’s top cruise line, Cordelia Cruises to usher in a new wave of inbound luxury tourists to Sri Lanka.

Leveraging their newly forged partnership, Advantis – Travel and Aviation will serve as the General Sales Agent, while Advantis Group subsidiary, Clarion Shipping will serve as the Port Agent for Cordelia Cruises in Sri Lanka.

Cordelia Cruises aims to revolutionize the tourism market in the region by offering an extraordinary cruise experience that exudes style and luxury through its crown jewel – “The Empress”, an iconic vessel that first set sail with the name The Nordic Empress.

With 796 cabins in 5 distinct categories filled with state-of-the-art amenities, the ship is capable of accommodating 2,000 passengers. The luxury cruise line will embark on its inaugural sailing to the island, in June 2023.

The collaboration marks a milestone in Sri Lanka’s efforts to revitalize inbound tourism and capitalize on the island’s significant untapped potential as an international hotspot for cruise tourism.

Embarking on a Cordelia Cruise journey to Sri Lanka opens up a world of thrilling shore excursions for travelers, with Jaffna, Hambantota, and Trincomalee serving as bases.

These exceptional locations offer an opportunity to embark on unforgettable adventures that showcase the very best of Sri Lanka’s rich heritage, breathtaking natural beauty, and vibrant cultural diversity.

A significant boost to the Sri Lankan tourism industry is anticipated, attracting an estimated 80,000 tourists within the first four months alone.

This surge is set to unlock significant commercial opportunities for the tourism value chain, drive economic growth and position Sri Lanka as a premier destination for discerning travellers, providing a timely impetus to the country’s travel and tourism industry.

Cordelia Cruises President and CEO, Jurgen Bailom stated that: “Sri Lanka is truly one of the most uniquely diverse holiday destinations in the Asian region.

Combined with the invaluable support of our local partners Advantis, and the Hayleys Group, we see immense growth potential in synergistically integrating Sri Lankan and Indian destinations into a single, unforgettable luxury travel and hospitality experience.”

Hayleys Group Chairman and Chief Executive, Mohan Pandithage noted the collaboration with Cordelia Cruises would inject much needed energy into the country’s tourism sector.

Commenting on the partnership, Advantis Managing Director, Ruwan Waidyaratne said:. This partnership promises to channel much needed support for Sri Lanka’s resurgent tourist industry, and we are confident that this partnership will help our nation promote its attractions year-round.”