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Today’s (13) weather conditions follow showers, thundershowers, fairly strong winds

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By: Isuru Parakrama

Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (13).

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts during the evening or night, the statement added.

Fairly strong winds about (40-45) kmph can be expected at times in western slopes of the central hills, Northern and North-Central provinces, and in Puttalam, Hambantota 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 a few places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle. 
Winds:
Winds will be south-westerly and speed will be (20-30) kmph. Wind speed may increase up to (40-50) kmph at times in the sea areas off the coast extending from Hambantota to Pottuvil and in the sea areas off the coast extending from Puttalam to Kankasanthurai via Mannar.
State of Sea:
The sea areas off the coast extending from Hambantota to Pottuvil and in the sea areas off the coast extending from Puttalam to Kankasanthurai via Mannar will be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Govt. gazettes Colombo Port City investment incentives

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By: Staff Writer

Colombo (LNW): Spanning 269 hectares of ocean reclamation, Port City Colombo, which also includes first ever Special Economic Zone dedicated for exports of services is providing reliefs for investors include concessionary 50% tax rate; enhanced capital allowance; flexibility of currency choice on payment of dividends or other financial benefits by businesses

Initial 5-year roll-out plan envisages US $ 5.6 b in FDI which will fast-track Sri Lanka’s economic recovery, positioning both Port City and Sri Lanka as leading player in service export industry

Overall, Colombo Port City envisages creating over 140,000 direct job opportunities and contribute $13.8 b to Sri Lanka’s GDP annually

Estimated fiscal revenue of $ 1.7 b is expected at construction stage while recurring revenue of approximately $ 700 m per annum is expected at operational stage of project

In a major breakthrough to boost foreign direct investments, the incentives and tax exemptions for investors intending to start ventures in the Colombo Port City have been published by the Government via Extraordinary Gazettes (2339/31 and 2339/32) dated 7 July.

Two prospective groups of investors have been identified who will be able to avail themselves of these incentives and tax exemptions.

Businesses that invest $ 100 million per plot of land or a pro-rated investment in a subdivided plot of land according to the Colombo Port City (Development Control) Regulations or one that will make an investment of a minimum of $ 25 million in the plots of land for the Marina will be entitled to exceptions or incentives according to several schemes set out in the gazette.

These include an incentive of 50% of the prevailing corporate tax rate applicable for the respective year of assessment under the Inland Revenue Act, No. 24 of 2017 from all gains and profits and an incentive of an enhanced capital allowance of 300% of the expenses incurred on depreciable assets,

A second gazette issued on the same date stated companies can pay investors dividends or any other financial benefit on the investment in a designated foreign currency other than in Sri Lanka Rupees.

The Commission has leased out marketable land to a person or company under section 39 of the Act and a dividend or any other financial benefits accrues to the investor within a period of five years from the date of the lease paid,

It also set out that businesses operating within the Port City may accept payments in Sri Lankan Rupees in respect of any goods or services provided subject to several conditions including depositing it in a Rupee account of a licensed commercial bank and converting it to another currency through the same.

The gazette also identified investments that will be considered Secondary Businesses of Strategic Importance. These can include companies working in the areas of global and regional economic activity in international trade, shipping logistic operations, offshore banking and finance, IT etc ,

The initial 5-year roll-out plan envisages $ 5.6 billion in FDI which will fast-track Sri Lanka’s economic recovery, positioning both Port City and Sri Lanka as a leading player in the service export industry.

Overall, Colombo Port City envisages creating over 140,000 direct job opportunities and contributing $13.8 billion to Sri Lanka’s GDP annually.

Estimated fiscal revenue of $ 1.7 billion is expected at construction stage while a recurring revenue of approximately $ 700 million per annum is expected at the operational stage of the project.

7 SOEs up on dale under transaction advisors

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By: Staff Writer

Colombo (LNW): In a significant move towards State Owned Enterprise (SOE) reforms, seven identified entities the will set to undergo reforms under the supervision of transaction advisors soon.

Cabinet of Ministers at its meeting recently approved the recommended transaction advisors for this purpose.

“The decision is in line with the policy directive set by the government and aims to ensure effective and transparent divestiture of key entities,” said State Owned Enterprises Restructuring Unit (SRU) Director General Suresh Shah.

Under the leadership of President Ranil Wickremesinghe the relevant proposal was presented to the cabinet of ministers was approved resulting in the appointment of International Finance Corporation (IFC) a member of the World Bank Group for the divestiture of SriLankan Airlines Ltd., Lanka Hospitals Corporation PLC and Sri Lanka Telecom PLC.

For the four other entities Sri Lanka Insurance Corporation Ltd (SLIC), Hotel Developers Lanka Ltd (Hilton), Canwill Holdings Ltd (Hyatt) and Litro Gas Ltd (Litro, including Litro Gas Terminals Ltd) was carried out through a competitive bidding process following Government’s Consultant Procurement Guidelines.

Both local and international advisors submitted proposals, which were evaluated by a Special Cabinet Appointed Consultants Procurement Committee, appointed by the Cabinet. Following the procurement process, the committee recommended the appointment of transaction advisors as follows:

• Litro Gas Ltd (Litro, including Litro Gas Terminals Ltd): Deloitte Touche Tohmatsu India (Deloitte India) has been appointed as the transaction advisor.

• Canwill Holdings Ltd (Hyatt): Deloitte Touche Tohmatsu India (Deloitte India) has been appointed as the transaction advisor.

• Hotel Developers Lanka Ltd (Hilton): Colliers International Consultancy and Valuation (Singapore) Ltd and Platinum Advisors has been appointed as the transaction advisor.

• Sri Lanka Insurance Corporation Ltd (SLIC): Alvarez & Marsal Middle East Ltd., and Capital Alliance Partners LTD has been appointed as the transaction advisor.

Shah said the agreements with respect to these appointments will be concluded shortly, setting the stage for the next phase of the divestiture process including investor engagement.

To ensure transparency in the divestiture process, prospective investors will be invited to express interest (EOI) via advertisements to be published in both the local and international press.

Investors shortlisted via the EOI process will be provided access to data rooms populated with information necessary for a comprehensive due diligence.Thereafter such investors will be Requested to submit both technical and financial proposals in response to a Request for Proposals (RFP).

“These divestitures are expected to contribute towards sustainable economic growth and a more competitive economy whilst better safeguarding citizens interests,” Shah added.

SL Govt to revitalize 469,000 defunct tax files introducing tax reforms

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By: Staff Writer

Colombo (LNW): The government is fully determined to revitalize tax files that became defunct due to stupid policy of the previous regime by introducing massive tax cuts and abolishing certain revenue generating taxes following its first cabinet meeting in 2019.

Individuals who open income tax accounts under a gazette notice will not be asked questions on tax returns not filed of prior years, State Minister for Finance Ranjith Siyambalapitiya said.

Sri Lanka issued a gazette requiring, doctors, lawyers and vehicle owners to open an income tax account from June 01, and anyone over 18 years from next year.

There has been a decline in Sri Lanka’s tax base between 2019 and 2020 with 33.5% decline in the number of registered taxpayers (corporate and individual) in the country. T

his decline is most probably associated with the major changes in tax policy introduced in December 2019, particularly the increase in thresholds for Value Added Tax (VAT) and the abolition of Pay As You Earn (PAYE) tax.

The Chairman of the Sectoral Oversight Committee on National Economic and Physical Plans, Mahindananda Aluthgamage said that although there are 500,000 personal income tax files in this country, only 31,000 of them are paying tax.

During the Sectoral Oversight Committee meeting held recently in parliament, he pointed out that there are 105,000 registered limited companies in the country, but 82% of the tax revenue is received from only 382 companies, the Department of Communications of the Parliament reported.

The Chairman also emphasized that it is important to maintain the inflation, the reserves of the country and the government’s income in an optimal condition by December by the time of the second review of the International Monetary Fund (IMF), given that the said factors must be taken into account when granting loans.

Therefore, the chairman said that his committee will hold regular discussions with Sri Lanka Customs, Excise Department and Inland Revenue Department to provide necessary facilities to increase the state revenue, the statement said.

Aluthgamage spoke at length about the failure of the Inland Revenue Department to collect the tax revenue and stated that the committee is making positive improvements in this regard.

There was also a discussion about the collection of Rs. 904 billion in arrears which is due to the Inland Revenue Department, it added.

Furthermore, he pointed out that discussions are being held with the Minister of Justice to amend the Inland Revenue Act.

The Inland Revenue Commissioner General stated that the tax revenue target given by the government for the year 2023 of Rs. 1.6 trillion was expected to be earned by 40% in the first 6 months and 60% in the remaining 06 months, and the target for the first 6 months has already been met.

Apart from the said, he stated that work is being done to generate expected tax revenue in the remaining 6 months. The Chair also mentioned that there is a need to establish a systematic mechanism to regulate the collection of tax revenue.

Members as well as officials pointed out that due to the fact that the data provided for the registration of companies in this country is not true and that they have to face problems in tax collection.

The Committee also discussed at length the need to establish a digital data system linking the Sri Lanka Customs Department, the Excise Department and the Inland Revenue Department as soon as possible, as well as the need to re-register the private tax file in the country, according to the statement.

Hambantota undergoes integrated development under Surbana Jurong master plan

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By: Staff Writer

Colombo (LNW): The long-awaited development of Hambantota district is set to gain momentum again, as the Cabinet of Ministers approved to entrust the responsibility of preparing a master plan to Singapore-based renowned Surbana Jurong Ltd again.

This development plan will be prepared for the implementation of the envisaged integrated development of the Hambanthota town (Municipal Council) area.

Hambantota is one of the most important hub in the shipping lanes of the Eastern and Western world countries and has the potential to create a national and international development network and the plan expects to have its economic impact in Sri Lanka.

Similarly, Hambantota is administratively the main town in the district, providing services to a large area.

“Although the Cabinet had previously approved the appointment of Surbana Jurong Ltd., in 2018 to obtain consultation services for a regional plan and a detailed master plan of Greater Hambantota, the implementation of the decision had been pending.

Now, recognising the significance of Hambantota’s development, the Government has deemed it appropriate to engage the same consultancy firm that was entrusted with preparing master plans for Colombo city, the Western province, and the strategic development of the tourist zone in the Eastern province,” Cabinet Co-Spokesman and Minister Banduala Gunawarena said.

Speaking at the post-Cabinet meeting media briefing he said by assigning the responsibility to Surbana Jurong Ltd., the Government aims to leverage the expertise and experience of the consultancy firm in urban planning and strategic development.

Surbana Jurong is a global urban, infrastructure and managed services consulting firm with over 70 years of track record in successful project delivery.

“This strategic move aligns with the Government’s commitment to fostering sustainable and inclusive growth in Hambantota district, unlocking its full potential and creating new opportunities for the local population.

The preparation of a comprehensive master plan will play a crucial role in guiding the district’s development activities. It will provide a roadmap for infrastructure development, economic growth, environmental sustainability, and social progress,” Minister Gunawardena added.

He also emphasized on the importance of hiring international experts for such development projects insisting that Sri Lanka lacks knowledge in those areas.

The purpose of the President is to create an entrepreneurial state instead of a welfare state

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The ultimate goal of ‘Aswesuma’ is not to achieve a country free from poverty, but a developed country

• Calling applications to select 2024 ‘Aswesuma’ beneficiaries to commence from August 1

-Social Empowerment State Minister Anupa Pasqual

President Ranil Wickremesinghe intends to create an entrepreneurial state instead of a welfare state, Social Empowerment State Minister Anupa Pasqual said.

The State Minister also mentioned that the ultimate goal of the ‘Aswesuma’ program is to create a developed Sri Lanka in place of a poverty-free Sri Lanka by the year 2048.

He expressed these views today (11) during a press conference themed ‘Collective Path to a Stable Country’ held at the Presidential Media Centre (PMC).

Social Empowerment State Minister Anupa Pasqual further commented;

We launched the ‘Aswesuma’ initiative in response to a persistent social criticism. The ‘Samurdhi’ Movement’s selection of deserving candidates was said to have involved a number of anomalies. The opposition specifically alleged that the ‘Samurdhi’ initiative lacks a social empowerment system.

The Social Welfare Board put the ‘Aswesuma’ scheme into effect as per President Ranil Wickremesinghe’s directives. The settlement program is a non-political, open process. Both appeals and objections may be submitted throughout the same process. It also covers the annual procedure of admitting the qualified and removing the ineligible.

The President entrusted our Ministry with enlisting 1.2 million people into the productive economy in order to empower them. Before the end of this month, the President will get the relevant plan. The empowerment of this group will be accomplished during the course of the three-year strategy.

In this country, there are 1.8 million‘Samurdhi’ beneficiaries, and more than half of them are adults. Although they were engaged in various jobs when they were young, they joined the Samurdhi’ Movement after the age of 60. That has also been the focus of the President’s attention, and actions have been taken to implement the pension system with help from the Social Security Board. It will be submitted to the Cabinet in the future and the necessary work will be done.

Education reforms are also crucial for the cause of social empowerment. The objective is to create skilled professionals. We are receiving support for this program from China, the Asian Development Bank, World Bank, and ‘Samurdhi’ Banking System. As a result, rather than eradicating poverty in Sri Lanka, we have planned to exploit the Samurdhi Bank system to generate wealthy individuals.

Currently, some politicians are working very hard to misrepresent ‘Samurdhi’ Bank. However, the ‘Samurdhi’ economy and financial system are being promoted more vigorously thanks to the ‘Aswesuma’ program.

Additionally, commencing from August 1st, those who could not apply for ‘Aswesuma” this year or failed to submit appeals will have another chance to do so. Every year, a certain number of people are eligible for these benefits, and some of them drop out due to a variety of reasons. Additionally, this program provides empowerment and protection to everyone, from young children to senior citizens.

Instead of eradicating poverty, President Ranil Wickremesinghe wants to see Sri Lanka become a developed nation by 2048. This serves as the required context for that. A welfare state is not what we desire. A state of entrepreneurship must be established. The goals of building a developed country cannot be achieved through a welfare country. We are moving forward with these programs in line, to achieve such a state.

President’s Media Division (PMD) 

Parliamentary Staff Sports Club emerges champions of A and C groups of State Service Carrom Tournament

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The Parliamentary Staff Sports Club recently won the group A and C championships in the 2023 State Service Carrom Tournament.

The Parliamentary Staff Sports Club won the championship by beating the Colombo University team in the final match of Group A and the Moratuwa University team in the final match of Group C. Representing the Parliamentary Staff Sports Club, Sujeewa Lasantha (Captain), Rasika Rajapaksa, Gayan Perera, Priyantha Dharmasena and Sanjay Fernando participated in the Group A matches and Tharindu Perera (Captain), Bawanta Shamika, Pradeep Pushpakumara, R.M Ratnayake and Chathushka Madhusanka participated in the Group C matches.

The Parliamentary Staff Sports Club, who won the championship, was congratulated by the Secretary General of Parliament Mrs. Kushani Rohanadheera, Assistant Secretary General Mr. Hansa Abeyratne and other senior staff members.

Tamil Political Leaders Condemn Sarath Weerasekera for Racist Remarks and Interfering with Judiciary

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Tamil political leaders condemn a member of the government under the guise of parliamentary privileges and pressuring the judiciary by denouncing the race of a judge.

Tamil political leaders point out that MP Sarath Weerasekera is trying to stir up racist feelings among the Sinhalese people by saying that a Tamil judge will intervene in the case related to the controversial Kurundi temple built at the Kurunthurmale archaeological site.

The Mullaitivu Bar Association, which unanimously passed a resolution condemning the statement of Rear Admiral Weerasekera, who is also a former Minister of Public Security, is scheduled to hold a protest in front of the Mullaitivu Court today (Tuesday 11).

MP Weerasekera’s quarrel with Mullaitivu Magistrate T.Saravanaraja has arisen when the judge took steps to stop him from speaking during a court inquiry held at the Kurunthurmale archaeological site on July 4.

When Magistrate Saravanarasa and all parties went there to investigate the complaint made by Adisivan Iyer Temple Administrator Council that the construction of the Kurunthurmale archaeological site was being carried out despite court orders, Parliamentarian Sarath Weerasekera was also present there along with a group of lay priests.

The MP Sarath Weerasekera has tried to state the facts when the Buddhist monks were allowed to perform religious ceremonies there by the order of the magistrate while the courts are investigating.

But Justice Saravanaraja, who refused to give his opinion, said that it cannot be allowed to publish the opinions of MPs, politicians or religious leaders. He emphasized that since it is a judicial matter, only the submissions of the lawyers are sufficient.

The magistrate also said that although other MPs were also present, none of them were allowed to express any opinion during the observation.

Ilangei Tamil Arasu Katchi Media Spokesperson, Member of Parliament MA Sumanthiran says that the judge came there with other parties to see if the court order related to the Kurunthurmale archaeological site has been violated, condemning the threatening statement of the government member.

“It is inappropriate for MP Sarath Weerasekera to criticize the litigant who came to fulfill his responsibility by using parliamentary privileges.”

Saying that Sri Lanka is a country of Sinhalese Buddhists, he cannot accept the views of this MP, who incites Sinhala racism, says the leader of the Tamil People’s National Alliance, Member of Parliament CV Wigneswaran.

The general secretary of the Tamil National Janata Peramuna, Member of Parliament Selvarasa Gajendran emphasizes that it clearly shows that his main aim is to intimidate the magistrate who started by using parliamentary privileges and to incite racism among the Sinhalese.

It is not known whether the Sri Lanka Bar Association or the Judicial Service Commission said anything regarding the statement made by the Rear Admiral in Parliament against the Mullaitivu Magistrate.

Meanwhile, Mullaitivu Magistrate T Saravanarasa has ordered that the reports of the Archeology Department and the Police should be submitted on August 8 regarding whether the new constructions have been carried out contrary to the court order.

Source: THE LEADER

Sri Lanka’s Ambassador Explores Political and Commercial Partnerships in Brazil’s State of Goiás

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During an official visit to the State of Goiás in Brazil on July 7, Sri Lanka’s Ambassador to Brazil, Sumith Dassanayake, held meetings with key officials to foster political and commercial partnerships between Sri Lanka and the State of Goiás. The State of Goiás is known for its rapid development, boasting a GDP of over BRL 42 billion and excelling in commerce, agriculture, livestock, mining, and food production.

Ambassador Dassanayake engaged in constructive discussions with Mayor Rogério Cruz of Goiánia, where the proposal to establish a “Sister City” project between the Municipal Council of Goiania and a prominent Municipal Council in Sri Lanka was warmly accepted. The ambassador also provided insights into the socio-political developments in Sri Lanka and highlighted trade, tourism, and investment opportunities available for the business community in the State of Goiás.

The Mayor expressed confidence in further strengthening the relations between Sri Lanka and the State of Goiás across multiple fields following the productive meetings with Ambassador Dassanayake and his team.

In another significant meeting, Ambassador Dassanayake met with Marco César Chaul, the President of the Federation of Trade in Goods, Services, and Tourism of the State of Goiás (Fecomércio-GO). During the discussion, the ambassador emphasized Sri Lanka’s interest in collaborating closely with the industrial sector in Goiás, particularly in pharmaceuticals, ICT services, tourism, and rubber-based industries. He also highlighted investment opportunities available in Sri Lanka, specifically in the Colombo Port City and the Industrial Zone in Hambantota, for Brazilian investors.

Both parties agreed to enter into a Memorandum of Understanding (MoU) focused on trade, tourism, and investment promotions between Fecomércio-GO and a leading Chamber of Commerce in Sri Lanka. The Sri Lankan Embassy in Brazil will undertake preliminary arrangements for the MoU, facilitating closer cooperation between the two entities.

Sri Lanka to Sign Memorandum of Understanding for Satellite-Based Oil Spill Monitoring Service

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The Cabinet of Ministers has approved a proposal put forth by the Urban Development and Housing Minister to sign a Memorandum of Understanding (MoU) in order to obtain a satellite technology-based oil spill monitoring service. Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardhana made this announcement during the weekly Cabinet media briefing held at the Government Information Department.

With the shipping industry and port development experiencing growth, there has been an increase in the number of ships navigating Sri Lankan waters. Consequently, it has become imperative to establish a system that can swiftly gather information about oil spills caused by ships. Such a system would enable prompt measures to prevent marine pollution, identify the responsible vessels, and take appropriate legal actions. As a pilot project, the Economics and Finance Ministry of France has agreed to provide a grant of 601,810 Euros through Collected Localization Satellites (CLS) to support this endeavor.

The draft Memorandum of Understanding prepared for this purpose has received clearance from the Attorney General’s office. Subsequently, the Cabinet of Ministers approved the proposal presented by the Urban Development and Housing Minister to proceed with signing the MoU, solidifying Sri Lanka’s commitment to effective oil spill monitoring with the aid of satellite technology.