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Govt extends begging bowl for US$ 53 million more to ADB in addition to $350 Million loan

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By: Staff Writer

Colombo (LNW): Sri Lanka has extended the begging bowl to ADB for US$53 million additional loan for integrated rural road investment project following the Asian Development Bank (ADB)’s approval of a US$350 million special policy-based loan.

This ADB loan is to provide budget support to Sri Lanka for economic stabilization. The program is part of a broader package of financial assistance anchored by the International Monetary Fund’s Extended Fund Facility for the country.

This was aimed at stabilizing the economy and lay the foundation for economic recovery and sustained growth.

Sri Lanka has made the fresh appeal to ADB for the repair and reconstruction of a dilapidated rural road network which is an urgent need, Minister Bandula Gunawardena said.

Sri Lanka is facing a severe and unprecedented economic crisis. High inflation has eroded purchasing power, livelihoods have been affected, and past development gains have been reversed.

“ADB is concerned about the deep crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women,” said ADB President Masatsugu Asakawa.

“ADB is committed to standing with Sri Lanka as it addresses its present challenges and strides toward economic stabilization, sustainable recovery, and inclusive growth.”

Sri Lanka has embarked on bold reforms to address the causes of both internal and external imbalances and return to a sustainable debt trajectory.

The country faces a long road to recovery and must remain steadfast in the implementation of necessary reforms, which include enhancing tax revenue collection, strengthening public financial management, and improving performance of state-owned enterprises.

It will ensure autonomy and independence of the central bank, safeguarding financial sector stability, and bolstering governance frameworks.

As these measures are implemented, it is essential to ensure that adequate social protection is provided. Implementing governance reforms and anticorruption measures will be critical.

Transparency and open communication will be crucial in building agreement around the reforms. ADB will proactively engage with the government, other stakeholders, and development partners to help address structural impediments and plan future support.

ADB has supported Sri Lanka’s response throughout the crisis. In 2022, in close coordination with development partners, ADB provided emergency assistance to support basic services and sustain livelihoods.

ADB repurposed $334 million of existing loans as emergency response to support the import of essential items such as fertilizer, medicines, chemicals for water treatment, working capital for small and medium-sized enterprises, and cash transfers to the most poor and vulnerable.

Trade finance lines through ADB Trade and Supply Chain Finance Program supported the import of essential items during the crisis.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Economically developing Ethiopia to strengthen its bilateral relations with Sri Lanka

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By: Staff Writer

Colombo (LNW): Ethiopia bow under going economical and technological transformation overcoming poverty wants to strengthen bilateral relations with Sri Lanka

Ethiopia is keen to strengthen its bilateral relations with Sri Lanka, the President of Ethiopia, Sahle-Work Zewde said.

The Ambassador of Sri Lanka to Ethiopia K.K. Theshantha Kumarasiri presented his credentials to President of Ethiopia Sahle-Work Zewde at the Presidential Palace in Addis Ababa, Ethiopia.

Following the presentation of credentials, Ambassador Kumarasiri was received in the audience by President Zewde, during which Ambassador Kumarasiri conveyed to President Zewde the sincere greetings of President Ranil Wickremesinghe.

Uinder the President’s directives the Government of Sri Lanka is determined to make stronger bilateral relations with all African countries including Ethiopia in line with the new foreign policy initiative introduced by President Wickremesinghe under the theme of “Look Africa.”

During the discussion President Zewde assured that the Government of Ethiopia stands ready to work with the Government of Sri Lanka in strengthening bilateral relations and multilateral cooperation for the mutual benefits of Sri Lanka and Ethiopia.

Further, the discussion was centered on developing partnerships for trade and investment between Ethiopia and Sri Lanka with bilateral linkages at the targeted priority sectors such as apparel manufacturing, tourism, hospitality, agriculture, ICT, innovation & knowledge creation, logistics and construction.

The discussion envisaged a wider Africa centric partnership particularly on blue economic initiatives to meet common challenges of climate change, sustainable development, inclusive economic growth, energy and security within the solidarity of the South-South cooperation.

The conversation also underscored the significance of formulating on-going bilateral interactions between Sri Lanka and Ethiopia.

Both countries aare formulate modalities for institutional and structural instruments for enhancing bilateral interactions between Sri Lanka and Ethiopia including establishing partnership with business Chambers of the two countries for mutual benefits.

While recognizing Sri Lanka’s continuous partnerships with Ethiopia particularly in the manufacturing sector which has successfully contributed to create employment opportunities for a large number of Ethiopian citizens.

President Zewde assured that the pertinent authorities in Ethiopia will continue to provide more and more investment opportunities and business partnerships between Ethiopia and Sri Lanka.

At the end of the cordial discussion, Ambassador Kumarasiri appreciated the support and cooperation extended by the Government of Ethiopia to the Embassy of Sri Lanka in Addis Ababa for its successful deliberations in the host country, Ethiopia.

Tea crop improves marginally in April despite fertilizer issues

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By: Staff Writer

Colombo (LNW): Sri Lanka’s tea production in the first four months of 2023 dropped 20% to a three-year low of 84 million kg, an industry official said, as the key sector struggles with the impact of a chemical fertilizer ban and economic crisis.

The island, hit with its worst financial crisis in seven decades, implemented a now-scrapped ban on chemical fertilizer early last year, which caused tea production to drop by 16% in 2022 from 2021, government data showed.

Despite the reversal of the ban, months passed before sufficient fertilizer stocks were imported and prices have soared in the interim, industry experts said.

Sri Lanka’s tea crop has begun to see a marginal improvement in volumes, as a result of favourable weather conditions and robust distribution of fertilizer.

In April, tea production increased by 8% year-on-year to 24.72 million kilos, but the 2023 first four months crop dipped by 2.49% compared to 2022 reflecting the struggle for recovery after detrimental policy decisions.

Data analysed by Forbes and Walkers Research confirmed that in April all elevations have shown a steady growth in volume in comparison with the corresponding period of 2022.

High-grown elevation produced 6.04 million kilos up by 7.11% YoY whilst, medium elevation production was 4.37 million kilos up by 6.29% YoY, and low-grown elevation crop was up by 8.04% to 13.05 million kilos. The production of green was at 206,167 kilos in April 2023, up by 113.54% YoY.

However, on a cumulative basis, all elevations have shown a decline over the corresponding period of 2021.

January-April 2023 cumulative production totalled 84.09 million kilos, registering a drop of 2.14 million kilos or vis-à-vis 86.23 million kilos YoY.

Forbes and Walker Research showed that compared to 2022, all elevations except for the low-grown and green tea segments have shown negative variances in the year 2023.

High-grown elevation produced 18.62 million kilos down by 8.46% YoY whilst medium elevation production was 13.3 million kilos down by 5.61% YoY. However, the low-grown elevation crop was marginally up by 0.29% to 51.35 million kilos and the green tea crop was at 806,447 kilos, up by 37.59% YoY.

When compared to 104.54 million kilos of January-April 2021, cumulative production of 2023 shows a decrease of 19.57% or 20.46 million kilos.

Industry growers had said that some estates were cut off from fertilizers for up to 18 months and they warned that it had a detrimental impact on crop production. In addition, the cost of production of tea growers has steeply risen by around 30% amidst the foreign exchange crisis.

As per the Sri Lanka Tea Board, the country’s total national production for the year 2022 was 251.50 million kilos compared with 299.49 million kilos in 2021. This was the lowest in 26 years when 246 million kilos were produced in 1995.

Sri Lanka expects tea production to recover in 2023 to 300 million kilos, whilst targeting export earnings of $ 1.5 billion for the year.

Sri Lanka Original Narrative Summary: 30/05

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  1. LKR appreciates further against the USD: According to the CB, average exchange rate down to Rs.296.58: CB data also shows a massive increase in Foreign Investors’ T-Bill & Bond holdings from 17.02.23 onwards in an amount of Rs.135.7 bn, coinciding with the LKR appreciation from Rs.364.58 per USD to Rs.302.09.
  2. ADB approves another loan of USD 350 mn as a “special policy-based loan to provide budget support for economic stabilisation”: loan to be a part of a broader package of financial assistance anchored by IMF.
  3. Marine Environment Protection Authority, quoting the Navy, says there is no chemical or oil leak reported from the wreck of MV X-Press Pearl: adds samples were obtained from the sea area for further investigation.
  4. Fort Magistrate remands Ven. Rajangane Saddhatissa Thera who was arrested by Police in Anuradhapura for making statements that could disrupt religious harmony: remand order valid till 7th June.
  5. SJB MP Dr Harsha de Silva calls for urgent support for exports & SMEs: warns of a bigger crisis in the absence of a Govt plan: Silva was in the forefront demanding an IMF programme with flexible exchange rates, higher interest rates and debt default & re-structuring, which has now crippled the Sri Lankan SMEs.
  6. Finance State Minister Ranjith Siyambalapitiya says a new Court will be set up to hear cases relating to taxes: laments legal cases relating to taxes and related fraud have been languishing in the legal system, creating a severe backlog.
  7. President Ranil Wickremesinghe decides to establish a special Police Unit to investigate and prosecute groups or persons, who try to disturb religious harmony in the country: instructs his adviser and Chief-of-Staff Sagala Ratnayake to discuss the matter with the IGP and take necessary action immediately.
  8. Department of Animal Production & Health requests people to refrain from eating beef due to viral disease rapidly spreading among cattle in the North Western Province.
  9. Former Finance Minister Ravi Karunanayake says State Owned Enterprises are set to undergo reforms and other public enterprises engaged in commercial activities also face “performance optimisation” under public-private ownership: out of 527 SOEs, 52 identified as strategically important and are to be operated with private sector investment.
  10. Two of Sri Lanka’s emerging top young players Mahesh Theekshana and Mahesha Pathirana play for Chennai Super Kings who win the IPL Cricket Tournament 2023 Final, defeating Gujarat Titans by 5 wickets in the last ball of their innings: : GT: 214/4 (20) lose to CSK: 171/5 (15) under Duckworth – Lewis system.

SL and China to commence 12th round of diplomatic consultations

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Colombo (LNW): China is set to lead a Foreign Ministry delegation to Sri Lanka from May 29 to June 01, 2023, to commence the 12th round of diplomatic consultations between the two nations.

The delegation will be led by Vice Minister of Foreign Affairs of the People’s Republic of China Sun Weidong, and the event will be held with Aruni Wijewardane, Secretary of Foreign Affairs of Sri Lanka.

These discussions aim the enabling of the two nations to assess the status of bilateral relations covering a number of areas, including political, economic and cultural cooperation, and thematic cooperation and people-to-people contacts, a statement by the Ministry of Foreign Affairs said.

During the visit, the Vice Minister of Foreign Affairs of China is scheduled to call on President Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena and the State Minister of Foreign Affairs Tharaka Balasuriya. The delegation will also engage with the members of the Sri Lanka – China Parliamentary Friendship Association and visit the Sri Lanka – China Friendship Village in Dewanagala.

Sri Lankans living abroad can apply for a passport or renew old passport online from June 01

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Sri Lankans living abroad will be able to apply for a new passport or can renew their passport with effect from June 1st. This was stated at the Sectoral Oversight Committee on International Relations held.

It was revealed by the officials of the Immigration and Emigration Department who participated in the sectoral oversight committee on international relations, held recently under the chairmanship of its chairman MP Namal Rajapaksa.

Officials further pointed out that Sri Lankans who live abroad can apply for passports online without visiting Sri Lankan embassies in their countries.

The committee also discussed the implementation of e-passport and the chairman of the committee instructed the relevant officials to speed up this process.

There was also a discussion about various issues including the shortcomings found in visa application online in the committee. For the above purpose, the chairman of the committee instructed the officials to quickly prepare and implement a necessary mechanism for foreigners to obtain their visas without difficulty, and to take necessary steps to further improve the facilities of Sri Lanka’s international airports for both locals and foreigners.

The importance of attracting tourists from high-income generated countries like Europe to Sri Lanka was discussed at length and the chairman advised the officials to take the necessary steps for that without delay.

The members of the committee, MP Niroshan Perera, S.M.M. Musharraf, Sagara Kariyawasam, Yadamini Gunawardena, Dr. Harini Amarasuriya, and attended the meeting while MP Chandima Virakkodi attended with the permission of the Chairman of the Committee.

Officials from the Ministry of Foreign Affairs, Department of Immigration and Emigration, Sri Lanka Tourism Development Authority and Airport and Aviation Services (Sri Lanka) (Pvt) Ltd participated in this meeting.

Parliamentary Caucus for Children urges immediate steps against media exposure of child victims and accused

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Colombo (LNW): Many social problems have arisen due to the exposure of child victims and the child accused, through the media and therefore immediate measures should be taken to prevent it, emphasised Chair of the Parliamentary Caucus for Children MP Rohini Kumari Wijerathna, speaking at the Caucus recently (24).

The Ministry of Women, Child Affairs and Social Empowerment and its affiliates such as the Department of Probation and Child Care Services, the National Child Protection Authority and the Ministry of Mass Media and the institutions operating under it and the Sri Lanka Rupavahini Corporation, Sri Lanka Broadcasting Corporation, Independent Television Network Ltd, Lake House and Government Information Department were also called before the caucus.

It was pointed out by the Members of Parliament that the exposure of the identities of children through the media, especially in cases of child molestation and child abuse, has a great impact on the lives of the children concerned.

Officials of the state media indicated that their agencies follow a standard when disseminating news related to children. Accordingly, the Caucus membership agreed that all media organisations should be called for the next meeting to discuss this further.

Apart from the said, there was a long discussion about the measures that can be taken to improve the condition of children in orphanages in Sri Lanka. Maintenance of relevant institutions even according to minimum standards, shortage of child care staff, inadequate hygiene in these places, provision of adequate psycho-social treatment to children, socialisation process of children in orphanages when they reach the age of 18, children in orphanages There was a long discussion about the measures to be taken for safety and proper supervision of children’s homes.

The officials pointed out that the Geneva Committee on Children’s Rights has given recommendations regarding orphanages in Sri Lanka and there are many issues such as shortage of trained staff, allocation of adequate provision for the Department of Child Care Services etc.

The importance of providing vocational training to children in orphanages was discussed at length, and the need for a suitable program to socialise children over 18 years of age and the importance of creating an environment for them to engage in self-employment was also emphasised.

In addition to that, introducing a foster parent system, placing children in the care of relatives, local adoptions, etc. were also discussed in the forum as alternative care proposals for children.

Furthermore, attention was paid to matters such as referring child suspects to the conciliation board for minor offenses, subjecting them to other alternative punishments, and using institutional reform as the last option.

Leader of the Opposition Sajith Premadasa, State Minister Diana Gamage, MPs Eran Wickramaratne, Mayantha Dissanayake, and Secretary to the Caucus and Secretary General of Parliament Kushani Rohanadeera, were present at the Committee meeting.

Students’ convenience should be prioritised over Exam Dept’s convenience: President

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PMD: In a recent discussion, President Ranil Wickremesinghe expressed his concerns about the obstacles faced by students when taking exams in unfamiliar environments. He emphasised the need for the Ministry of Education and the Examinations Department to prioritise the convenience and progress of students over their own convenience. Recognising the difficulties faced by students, the President advised the education authorities to transform schools with a minimum of 75 qualified students into examination centres, provided that it doesn’t disrupt on-going exam activities. He instructed officials to take prompt action in implementing this plan.

During the discussion, it was revealed that the 2023 GCE O/L examination, which began today (29), would be conducted in 3,568 centres, accommodating a total of 472,553 students. The government has employed approximately 40,000 officials for the smooth execution of the exams.

However, President Wickremesinghe received reports from concerned parents and students regarding the inconvenience caused by redirecting students from their own schools to other examination centres. The Ministry of Education and the Department of Examinations explained that they had made this decision due to the prevailing economic situation, aiming to limit the number of examination centres.

Understanding the impact this has on students’ mental well-being, the President stressed the importance of informing schools and students about such changes at least one year in advance. He also emphasised the necessity of establishing a formal programme to conduct all examinations related to children’s education without any delay. The President clarified that it is not the responsibility of the Examinations Department to provide reasons for not holding exams but rather the primary duty of the Ministry of Education and the Examination Department to create a conducive environment for students to take exams in familiar surroundings.

The discussion was attended by Senior Advisor to the President on National Security and Chief of Staff, Mr Sagala Ratnayake, Secretary to the President, Mr Saman Ekanayake, Secretary to the Ministry of Education, Mr Nihal Ranasinghe, Commissioner of Examinations, Mr Amit Jayasundara, and other officials.

Showers, thundershowers to continue in several provinces: Met Dept

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Colombo (LNW): Showers or thundershowers will occur at times in Western and Sabaragamuwa provinces and in Galle and Matara districts, and showers or thundershowers will occur at several places in Central, Uva and Eastern provinces and in Polonnaruwa district during the evening or night, the Department of Meteorology said in its daily weather forecast today (30).

Fairly heavy showers above 50 mm are likely at some places in Eastern and Uva provinces.

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 will occur at several places 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 (20-30) kmph. Wind speed may increase up to (40-45) kmph at times in the sea areasoff the coast extending from Puttalam to Kankasanthurai via Mannar and from Matara to Pottuvil via Hambantota.

State of Sea:
The sea areasoff the coast extending from Puttalam to Kankasanthurai via Mannar and from Kalutara to Pottuvil via Galle and Hambantota will be fairly rough at times. The other sea area around the island will be slight to moderate.

Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

AKD explains key reasons behind recent Rupee strengthening

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Colombo (LNW): The strengthening of the Sri Lanka Rupee recently evident against the US Dollar was due to Sri Lanka’s lacking of active engagement with the international market, Leader of the National People’s Power (NPP) and the Janatha Vimukthi Peramuna (JVP) MP Anura Kumara Dissanayke said, speaking to a rally organised by the NPP in Balapitiya electorate recently.

The NPP/JVP Leader explained that Sri Lanka needs dollars to repay loans, import goods and grow the country’s foreign reserves, but at present with the Central Bank of Sri Lanka’s (CBSL) announcement of not repaying debts, the ban on several imported goods slashing the import cost and the CBSL not purchasing dollars to maintain the reserves, neither of the aforementioned key purposes meets its outcome.

Sri Lanka was not engaging with the international market, and the outcome of which is the piling of excess dollars in the Sri Lankans banks, hence the indication that the US Dollar is continuously dropping against the Sri Lankan Rupee, Dissanayake emphasised.

In the backdrop, despite the Sri Lanka Rupee being virtually strengthened, the island’s economy will further shrink, and the public’s suffering will only increase in the future, the MP warned.

The NPP Leader urged the public not to be deceived by the ‘fabricated economy’ offered by President Ranil Wickremesinghe, who believes it to be the only solution gain the public’s trust.