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Unions lament Kahawatta Brandix factory shut down: Company says merger, not shutdown

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By: Isuru Parakrama

Colombo (LNW): Contradictory reports emerge with regard to a certain garment factory run by the apparel giant Brandix, where the workers’ unions lament that the Kahawatta Brandix factory has been shut down, but the Company denies the allegation, stating that merely ‘a merger’ has taken place.

Over 2,000 employees are working at the Brandix factory in Kahawatta.

The reports surface in the backdrop where many previous claims had been made that a number of factories owned by the apparel giant were shut down, whilst workers’ unions allege that the employees attached to the Kahawatta factory have been reassigned to the factory in Nivithigala, in what they described as ‘a cover-up’ to the shutting down.

There is a tendency of continuous closure of garment factories amidst the declining of orders stemmed by the global economic situation, and in the next five years there is a probability that Brandix may leave Sri Lanka, leaving thousands of employees jobless, unions added.

However, the apparel giant upon a query told LNW that the Kahawatta factory has been merged with the Nivithigala factory in view of providing “a more efficient service to the global customers” as per a pre-determined plan, hence no such shutdown ever being taken place.

A voluntary retirement scheme has also been implemented for the employees who wish to retire voluntarily and this scheme is being implemented solely based on the employees’ wishes, a spokesperson for Brandix said.

The company denied the rumours that Brandix Group has opened new factories in Bangladesh, stressing that they are false and emphasised that the factory overseas was built thirteen years ago.

Commenting on the reports that the company had closed five garment factories across the country, the spokesperson asserted that such an event did not happen at all and only the Welisara factory was shut down based on the company’s desire.

Official exchange rates reveal significant depreciation of LKR

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By: Isuru Parakrama

Colombo (LNW): The Sri Lankan Rupee has drastically depreciated against the US Dollar today (15) as revealed by the official exchange rates issued by the Central Bank of Sri Lanka (CBSL).

Accordingly, the buying price of the US Dollar has increased to Rs. 311.60 from Rs. 303.19, and the selling price to Rs. 328.92 from Rs. 318.99.

The Sri Lankan Rupee has also dropped against other currencies as well, including Gulf currencies.

Economic Recovery Bid

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By: Staff Writer

Colombo (LNW): As its economy and finance stature grows in slow momentum, Sri Lanka maintains multi-alignment approach instead of non-alliance stance to geopolitics harnessing foreign fiscal support in 2023 amidst the stable political situation under the leadership of President Ranil Wickremasinghe.

The sensitive fiscal, external, and financial sector imbalances pose some uncertainty for the economic outlook.

Growth prospects depend on debt restructuring and growth enhancing structural reforms. At the same time, fiscal consolidation will likely diminish these prospects, with the fiscal deficit expected to gradually fall over the medium-term.

Monetary and Fiscal Authorities assured that any restructuring of domestic debt, made known to people as debt optimization, will be purely on a voluntary basis.

But this announcement by the Government sent fear-waves across the economy activating the panic sentiment of the people.

There was a fear that, due to this voluntary debt optimization, the public will lose a significant part of the financial assets they are holding, not necessarily in government securities.

Inflation is forecasted to come down from a high base as monetization of fiscal deficits is reined in.

The current account deficit is expected to decline owing to import compression, despite slowing exports due to weak global demand. Additional resources will be needed in 2023 and beyond to close the external financing gap.

The island nation’s inflation, is now coming down faster than expected. The interest rates from the peak easing down especially after Central Bank announced the complete debt restructuring process.

The market interest rates will come down faster so in the second half, interest rates would be normalized in line with the inflation expectations prediction which is a single digit towards the end of the fourth quarter this year,” Central Bank said.

Around slightly over five years into 2023, and India is well underway with preparations for a pivotal year.

With all eyes on Sri Lanka, The government may be increasingly sensitive to global insights of how it handles possible shocks — external or internal — ranging from escalation on its borders to incidents of provoked youth violence of Aragalaya at Galle Face green.

Government bringing various anti-people laws, while creating Racial and Religious issues

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By: Staff Writer

Colombo (LNW): At this moment, many problems have arisen in the country, in the backdrop of bringing several bills including Broadcasting Authority bill and the Anti-Corruption bill by the government said Mr Eran Wickramaratne, M.P. addressing the media at the Office of the Leader of Opposition in Colombo today.

The Broadcasting Authority Act is also problematic. The Supreme Court has determined that several clauses of the anti-corruption bill are inconsistence with the constitution. Doubts arise whether this bill was prepared by a few private lawyers to meet the expectations of the government. Generally, if a bill is drafted by the Legal Draftsmen officers, there is no possibility to include so many clauses that are inconsistence with the Constitution.

Also, on the privatization of Sri Lanka Telecom, there is a debate within the government that there is a threat to national security. A bill to establish a budget office in parliament, is also being brought. While the government is introducing various anti- democratic anti -people bills, it is also creating problems of race and religion. Said Mr. Eran Wickramaratne

Since Mr. Gotabhaya Rajapaksa became the President in 2019, he went on reversing the Gazette and as a result the state revenue was reduced by one third. His successor President comes and reverses other laws and Legislations.

He said that if gazettes and laws are reversed based on necessity, there should be a dialogue in the country before that. The MP emphasized that the people are waiting for the best laws to eliminate corruption and fraud because the people are tired of corruption, theft and fraud in this country. This country went bankrupt for the first time under the leaders of the present regime. The parties responsible for it, are trying to bring these laws. People have to wonder why this group that destroyed the country is manipulating the things again.

Those who say people will forget everything in two weeks, created queues for oil, cut off electricity for 12 hours, raised inflation to sky-high say that Pohottuwa will return to power and a Rajapakse will become President. Are they thinking that the people could be deceived again? But Mr. Wickramaratne said that the people will never forget the destruction caused by the Rajapaksa government.

After the International Monetary Fund (IMF) approved a loan of 2.9 billion dollars, and the government drafts anti-corruption laws only according to the IMF’s agenda regarding corruption and fraud in the country, the country does not benefit from those legislations. He said that with the IMF, there is a deal, and there are two sides to it. Accordingly, if we adopt methods that suit the country, we can convince them about our methods of adopting laws.

When going to the discussion on an amendment of the agreement with the IMF next September, the tax free limit imposed on the working people should be raised to two hundred thousand from the current one hundred thousand rupees.

Meanwhile, in the local debt restructuring, Mr. Eran Wickramaratne stressed that in the background of economic contraction, it is the responsibility of the government to be on a firm decision not to include a Hair Cut on the deposit money when domestic debt restructuring is proposed, which creates a risk of bankrupting the banking system in Sri Lanka.

$ 46 million worth medicine and medical equipment from US

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By: Staff Writer

Colombo (LNW): Sri Lanka will receive US$ 46 million worth essential medicine and medical equipment from the Medical Help International USA next month. This was disclosed by Director Operations and Communications of Medical Help Sri Lanka Global project, Paddy Dassanayake who called on Prime Minister Dinesh Gunawardena at the Temple Tees earlier this week.

She said Medical Help International donates emergency medicines and other medical supplies to help vulnerable people of the society in coordination with the government body of beneficiary country and international, corporate and individual donors.

The Prime Minister appreciated their generosity which was purely voluntary to help vulnerable groups in society and accepted their assistance with gratitude. He further claimed that this assistance granted in an hour of need would immensely benefit the Sri Lankans.

The Medical Help International has extended its support to Sri Lanka since April 2022 to date worth LKR 78.3 Billion. It corresponds and coordinates with Sri Lanka Ministry of Health and while there are many categories of pharmaceutical drugs that are donated, a larger volume consisted of oncology, dialysis solutions, diabetic medicine including insulin to cover the huge medical shortage in the health care sector. Among these assistance, 1000 KVA Generator worth 42 million Rupees granted to Karapitiya hospital is one another huge contribution.

Ms. Paddy Dassanayake stated that some future projects are also in pipeline to assist Sri Lanka and supply of stents to Colombo National Hospital, supply of equipment to the new buildings in the National Hospital and Jaffna Hospital .

Medical Help International’s Project Coordinator, Dilini De Silva said a fundraising campaign for Sri Lanka’s 1st paediatric cardiology hospital at Lady Ridgeway hospital for Children has been initiated by the Sri Lankan expatriate community and general manager of Sri Lankan Airlines (Cargo), Chaminda Perera has made arrangements to air freight all the entire stock of medicine and equipment from US to Colombo free of cost.

Dept of Exams announces date for Grade 05 Scholarship Exam

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Colombo (LNW): The Department of Examinations has announced the date of the 2023 Grade Five Scholarship Examination.

Accordingly, the Grade 05 Scholarship Examination will be held on October 15, 2023.

Applications for the examination will be called from today (15) until July 06, 2023.

New online Passport system commences today

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By: Isuru Parakrama

Colombo (LNW): An online passport system soothing applicants to apply online for their passports is now operational covering the 25 districts of the island.

The new online application system is operational at the Divisional Secretariat level, with 50 Divisional Secretariats islandwide.

Having the new system operational, it is no longer necessary to visit the Office of the Department of Immigration and Emigration in Battaramulla, Colombo, and applicants can submit their passport applications, fingerprints and photographs at the sub-offices of the Department of Registration of Persons located in their respective districts.

The initiative will be declared official this (15) afternoon at the Homagama Divisional Secretariat under the patronage of President Ranil Wickremesinghe and Public Security Minister Tiran Alles.

Below is the list of Divisional Secretariat Offices where the sub-offices of the Department of Registration of Persons are established covering the 25 districts of Sri Lanka.

President invited to address Summit on New Global Financing Pact

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PMD: President Emmanuel Macron of the French Republic has invited world leaders, including President Ranil Wickremesinghe, to participate in the highly anticipated Global Leaders’ Summit for a New Global Financing Pact. The event, scheduled to take place in Paris on 22 and 23 June, aims to address the pressing challenges faced by the world today.

The Summit highlights the urgency of finding solutions to the multiple crises plaguing the global community. These crises range from climate change and biodiversity loss to the ongoing impacts of the COVID-19 pandemic, escalating conflicts, and growing inequalities. Such issues have significantly restricted the financial manoeuvrability of nations and pushed public debt levels to record highs, jeopardizing the achievement of Sustainable Development Goals (SDGs) and the targets outlined in the Paris Agreement on climate change and the Kunming-Montreal agreement on biodiversity.

Recognizing the need for a new financial pact to confront these challenges, President Macron extended a formal invitation to President Wickremesinghe, emphasizing the importance of collective action. The Summit aims to establish a shared vision for reforming the multilateral financial sector and charting a path towards a decarbonized global economy that aligns with the SDGs.

France, as the host country, seeks to bridge various transformation agendas, including the Bridgetown Initiative, with key events on the international calendar in the coming year. These events include the 18th Summit of G20 Leaders in New Delhi, the United Nations Summit on the SDGs in New York, and COP28 in Dubai. By bringing together a diverse coalition of stakeholders, including government representatives, international organizations, civil society, and private sector actors, the Summit aims to generate a collective vision and implement the necessary changes for a sustainable future.

President Macron expressed his appreciation for President Wickremesinghe’s presence at the summit, emphasizing the importance of collective success in shaping a better future for generations to come. The event holds the promise of fostering economic, social, and environmental capital, surpassing the achievements of previous generations.

Showers, thundershowers, strong winds expected during the day

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By: Isuru Parakrama

Colombo (LNW): The very severe cyclonic storm “Biparjoy” over East-Central Arabian Sea was located near latitude 21.9 degrees North and longitude 66.3 degrees East at 0830 hours of June 14, and may move nearly north-eastwards during the next 24 hours and cross Pakistan coasts by evening of June 15, the Natural Hazards Early Warning Centre of the Department of Meteorology said.

Naval and fishing communities are advised not to venture into the sea areas bounded by (18N – 25N) and between (65E – 75E) until further notice, and those out at the said sea regions are urged to return to coasts or be moved to safer areas immediately.

Meanwhile, several spells of showers will occur in Western, Sabaragamuwa and North-Western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts, and showers or thundershowers may occur at a few places in Uva and Eastern provinces during the evening or night, the Dept said in its daily weather forecast today (15).

Strong winds about (40-45) kmph can be expected at times in western slopes of the central hills, North-Central and North-Western provinces and in Hambantota and Trincomalee districts, it added.

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershower.

Marine Weather:

Condition of Rain:
Showers or thundershowers 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 (25-35) kmph. Wind speed may increase up to (45-50) kmph at times in the sea areasoff the coast extending from Hambantota to Pottuvil. Wind speed may increase up to (40-45) 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 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.

Sri Lanka Original Narrative Summary: 15/06

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  1. LKR crashes by a massive Rs.21.08 or 7.07% in just one week from Rs.297.94 on 06.06.2023 to Rs.319.00 by 14.06.2023: business persons lament that it’s impossible to carry on business under such volatile conditions: analysts point out that the “hot-money” inflows may have started to reverse.
  2. Venerable Omalpe Sobhitha Thera claims the CEB has disconnected electricity supply to many temples where the payment of electricity bills has been delayed: also laments that the Govt has not provided any form of subsidy including solar panels to religious places as a solution to the recent increase in electricity tariffs.
  3. President Emmanuel Macron of France extends invitation to President Ranil Wickremesinghe to address a high-level panel discussion at the Global Leaders Summit for a New Global Financing Pact, to take place in Paris on June 22nd and 23rd, 2023.
  4. Opposition MP Mano Ganesan tweets that President Ranil Wickremesinghe publicly recognising “Tamil Buddhism” as a historical fact is the “key to many deadlocks”.
  5. Urban Development and Housing Minister Prasanna Ranatunga says there is no conflict between the ruling party SLPP and the President: also says some people are trying to claim that there is such a conflict: further says the people have strong faith that the economy of the country will recover according to the program currently implemented by the Govt led by the President.
  6. Parliamentary Committee COPA reveals that the congestion in prisons has increased up to 259%: 26,791 inmates occupy the prisons at present whereas all prisons in the country could accommodate only 11,762 inmates: in some prisons, the congestion has gone up to 300 to 400%.
  7. Govt extends Forex capital controls by a further 6 months to “continue to re-build the country’s foreign exchange reserves”: Cabinet Spokesman Bandula Gunawardena says foreign exchange reserves have risen from “near-zero” to over USD 3.5 bn, “driven by remittances and tourism inflows”: CBSL data shows however that the Minister’s statement is erroneous as the current Reserves mainly consist of Bi-lateral SWAPs of USD 2.0 bn, IMF loan of USD 0.35 bn, and sudden “Hot-money” inflows of 0.65 bn: CBSL data also shows the Reserves were USD 1.9 bn at end March 2022.
  8. Avissawella Magistrate’s Court remands Ravindu Sanka de Silva alias ‘Booru Muna’, who was prevented from going overseas & allowed to leave the Katunayake Airport by the Airport Police on 25 February, until 19th June.
  9. Plantations Minister Ramesh Pathirana says the Palm oil ban will persist till the report by the Ministry of Plantation Industries jointly with relevant ministries on palm oil plant cultivation, suggests otherwise; adds the study will look into the possibilities of growing palm in Mahaweli lands, as well.
  10. Education Minister Susil Premajayantha says new appointments will be given on June 16 to 7,500 teachers from Colleges of Education and 5,500 graduate teachers in all three mediums of language: also says graduate teachers who are below 35 years, will be appointed for subjects such as science, mathematics, technology, language, geography and commerce.