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HC Moragoda continues dialogue with the Principal Secretary to the Prime Minister of India

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Continuing his ongoing dialogue with the Principal Secretary to the Prime Minister of India Dr. Pramod Kumar Mishra, the High Commissioner of Sri Lanka in New Delhi Milinda Moragoda met with the former at the Prime Minister’s Office on 05 May 2023.

High Commissioner Moragoda thanked Dr. Mishra for the support India has been extending to Sri Lanka in the context of the present economic crisis and updated him on the current developments in that regard, including on the debt restructuring process. The High Commissioner stressed the vital role that economic integration between the two countries could play in Sri Lanka’s economic recovery. The Principal Secretary to the Prime Minister recalled India’s close civilizational links with its southern neighbour.

High Commissioner Moragoda also followed up with the Principal Secretary on a range of issues pertaining to the bilateral relationship that had been discussed during their last meeting in February. The matters discussed included further economic integration between Sri Lanka and India, enhancing Indian investments and tourism in Sri Lanka, ways and means to further promote bilateral trade, cooperation in power and energy sector as well as aspects relating to Rupee trade. 

A cabinet rank official, Dr. Mishra has been serving as the Principal Secretary to Prime Minister Narendra Modi since September 2019.

Joint Secretary at the Prime Minister’s Office Ambassador Deepak Mittal and Sri Lanka’s Deputy High Commissioner in New Delhi Niluka Kadurugamuwa also attended this meeting.

High Commission of Sri Lanka

New Delhi

08 May 2023

Sri Lanka and Thailand join hands to celebrate International Day of Vesak at the UN in Geneva

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The Permanent Mission of Sri Lanka to the UN in Geneva together with the Permanent Mission of Thailand co-hosted a commemorative event to mark the International Day of Vesak at the United Nations Office in Geneva (UNOG) on Vesak Full Moon Day, 5th May 2023.

The event commenced with opening remarks by co-hosts, Ambassador Himalee Arunatilaka of Sri Lanka and Ambassador Suphatra Srimaitreephithak of Thailand, highlighting the importance of the day of Vesak to millions of Buddhists around the world.

Ambassador Arunatilaka underlined the key role played by Sri Lanka in gaining international recognition for the Day of Vesak through the resolution adopted by consensus in the UN General Assembly in February 2000, following a proposal tabled by then Foreign Minister, the late Lakshman Kadirgamar, on behalf of 10 countries, titled “International Recognition of the Day of Vesak”.

She also referred to the Vesak Day messages issued by President Ranil Wickremasinghe and Foreign Minister Ali Sabry, and noted that, the Four Virtues of Metta -loving kindness, Karuna – compassion, Muditha,- empathetic joy, and Upekha – equanimity, that are upheld in Buddhist philosophy, are morals for all humanity to aspire to, and also resonated with the values of the UN, while the Buddha is acclaimed as a great scientific thinker and philosopher whose teachings are universal and stand contemporary even today.

Director General of the UNOG Tatiana Valovaya delivering the welcome remarks recalled the contribution Buddhism has made to humanity and the relevance of the teachings of the Buddha to overcome the global challenges of today.

The Keynote address by the President of the Union of Thai Sangha in Europe, the Most Venerable Phravimolsasanavides was delivered through his representative.

Vesak Day messages were also delivered by the Permanent Representatives of Bhutan, China, India, Lao PDR, Mongolia, Myanmar, Nepal and Viet Nam. The event was attended by the Permanent Representatives of Pakistan, Lithuania, Slovenia, Hungary, Bulgaria, Lebanon, Panama, Ukraine, Kazakhstan, and Uganda, as well as diplomatic representatives from a number of countries including Portugal, France, Norway, Brazil, Cape Verde, Iran, Ireland,Indonesia, Saudi Arabia and members of the Buddhist community.

The event concluded with religious blessings delivered by the participating Members of the Maha Sangha.

Permanent Mission of Sri Lanka to the UN

Geneva

6th May 2023

Finance State Minister attends SL Partnership Accelerator Forum

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Colombo (LNW): The United Nations has been a significant partner of Sri Lanka providing technical and financial support for many of the development initiatives, said Finance State Minister Shehan Semasinghe, addressing the Sri Lanka Partnership Accelerator Forum in collaboration with the United Nations.

He noted that a partnership accelerator forum would be very important for addressing sustainable development, and assured that the government of Sri Lanka is committed to the establishment of sustainable development.

The politicisation has severely challenged the development , constraining the ability to achieve inclusive sustainable development, he added.

SL’s first experience-oriented platform ‘Feelo’ announces maiden investor partnership

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By: Staff Writer

Colombo (LNW): Feelo, a Sri Lankan startup company that offers unique experiential packages, has announced its first investor partnership just four months into business.

The company’s first investor, Ales Ryp, is a Czech entrepreneur and venture capitalist known for his work with Czech-based online experience platform, Slevomat.

The partnership marks a significant milestone for Feelo, demonstrating investor confidence in the company’s mission and vision for the future.

Feelo Co-founder and CEO Ondrej Lang, is thrilled to receive the backing of investors just four months into business. “I believe that Sri Lanka has enormous potential in its people, nature, and culture.

With the support of those who believe in the story of Feelo, we aim to build a Sri Lankan company that can disrupt the entire South Asian market. It will bring us much joy if we can help Sri Lankans enjoy their lives at least a bit more.”

Feelo offers unique experiential packages to their customers at discounted rates. The packages are designed to provide users with unforgettable experiences, from adventure sports to cultural tours. Users can simply make their purchase online, visit the vendor, and enjoy the experience.

On Feelo, customers can buy vouchers for experiences ranging from candlelit dinners, luxury stays with safaris, four-course tasting menus, and even smashing bottles or TVs to relieve stress.

Customers can also enjoy Japanese cuisine, get a creative haircut, try out nail or face wellness treatments, experience a food trail through a traditional Sri Lankan village, or spend a night in the rainforest.

Feelo offers a 100% money-back guarantee if customers are not satisfied with their experience. What sets Feelo apart is its focus on providing great experiences, and a business model centred on curated packages incorporating additional services from vendor partners.

Hasanta Sumudupriya, COO and Director of Feelo, explains that the startup has a unique offering that differentiates it from other companies in the market.

Since the inception of their platform four months ago, Feelo’s current market size has grown to more than 1,300 customers, and has engaged in over Rs. 13 million worth of customer transactions with vendor partners.

There is growing confidence in Sri Lanka’s startup ecosystem despite economic challenges, and Feelo’s success in riding the venture capital wave is a testament to the potential of tech start-ups in Sri Lanka. With Ryp’s backing, Feelo is projected to reach $ 1 million in revenue within the year.

Ondrej and his team are confident of the impact that Feelo will have in the near future. “In three years, our goal is to have revenues over $10 million and to be active in two foreign markets in addition to Sri Lanka. I aim to build a Sri Lankan company that disrupts the whole South Asian market.”

Investor-centric new investment policies and laws on the cards for BOI

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By: Staff Writer

Colombo (LNW):A stable investment policy and a unified investment law is set to be introduced, making Sri Lanka the easiest and most attractive country in the Asian region for investment.

Investment Promotion State Minister Dilum Amunugama said that a committee of experts has been appointed to introduce the new investment policy.

All services of the Sri Lanka Board of Investment (BOI) have been made more flexible. A fully-established Investor Facilitation Centre (IFC) at the World Trade Centre, west tower, 27th floor, has been established.

Further, a new marketing communication programme is soon to be launched to attract 100 IT service companies and encourage 50 existing BOI companies to reinvest.

Amunugama also said that many facilities such as the establishment of advisory councils for identified sectors, digitization of key investor services, and modernization of existing zones will be introduced to meet international green standards.

The other measure proposed were the introduction of a partnership finder database, five-year resident visa programme, etc. have already been implemented

High regulatory powered investment promotion agency (authority) will take up the task of expediting the attraction of foreign direct investment (FDI) in to the country efficiently and expeditiously, State Minister of Finance Shehan Semasinghe disclosed

Special committee appointed by President Ranil Wickremasinghe has already made a recommendation to set up this new agency by bringing the Board of Investment (BOI), the Export Development Board (EDB) and the Sri Lanka Export Credit Insurance Corporation (SLECIC) together onto one platform, he said.

National Enterprise Development Authority (NEDA) and other entities that support exports and investments will also come under the purview of the new agency.

The budget 2023 has allocated Rs 100 million to implement the investment and export sector reforms expeditiously.

These institutions connected to investment and exports will function under the proposed new agency following the re-enacting of 1978 Greater Colombo Economic Commission (GCEC) laws making it compatible with modern day needs.

The Board of Investment (BOI) is now completely out of target in attracting Foreign Direct Investment confining its operations to encourage BOI enterprises to carry out their businesses, economic experts warned.

BOI should be in the forefront of business attraction and supply chain management and need to be ready to react quickly to these challenges, they pointed out.

The government has taken this decision of merging BOI with other export related state institutions after evaluating the performance of the these institutions during the recent past.

On average, it takes around 170 days to approve an investment project in Sri Lanka as these processes involve over 40 line agencies, it has been observed.

At present there are over 73 project proposals are still to get approval at around 10 different agencies. The delay in approving the projects is not auger well for investors.

The aim is to expedite and stream line the investment approval process to cater to the needs of investors within four or five days under one roof on the directions of the President.

IMF induces a strategy for SLs financial sector stability in DDR scenario

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By: Staff Writer

Colombo (LNW): The Fund’s Asia and Pacific Department Director says IMF with the govt. will “flesh out a strategy” soon to safeguard financial sector in Domestic Debt Restructure scenario.

Hints that DDR was included in SL’ debt restructuring plan before the approval of IMF programme IMF has insitsed the government to heed the demand of other creditors although it is difficult task with banks , other stake holders and opposition politicians pressure.

The International Monetary Fund (IMF) plans to support the government to come up with a strategy to safeguard financial sector stability in a potential domestic debt restructuring (DDR) scenario, a top official of the Fund said.

“When you restructure domestic debt, you have to make sure that you also safeguard financial stability. So, these are issues on which the government is currently working and we’ll flesh out a strategy on that, hopefully very soon he pointed out.

He hinted that domestic debt restructuring was included in Sri Lanka’s debt restructuring plan before the approval of the IMF programme given the significant challenges on the path to debt sustainability.

“In terms of restructuring, the debt in Sri Lanka was assessed to be unsustainable. And that’s why, before the programme could be approved, there had to be a path towards restoring sustainability.

And that includes restructuring debt to all creditors – private creditors, official creditors, and to some extent, domestic debt, for the simple reason that debt sustainability is quite a big challenge in Sri Lanka,” he added.

The government is expected to come up with a comprehensive debt restructuring framework this month. The Central Bank recently revealed that Domestic Debt Optimization (DDO) on a voluntary basis would be included in the country’s debt restructuring strategy.

Commenting on economic recovery, senior finance ministry official highlighted that unlike previous IMF programmes, the current IMF programme put Sri Lanka on the path to prosperity as the successful implementation of it is directly linked to debt sustainability following the country’s default on external debt.

“The next step for them is to embark, to make good faith efforts to reach a debt agreement with their creditors – private creditors, official creditors and so on. In terms of growth outlook itself, we had a contraction of 8.7 percent 2022. We have growth contracting at 3 percent in 2023 and then making a mild recovery.

But, the issue will be for Sri Lanka to implement the programme well so that debt can be made sustainable, which is a big difference from previous programmes, and the country can be put on the path to prosperity,” he elaborated.

The IMF expects the current programme, which is lying on revenue-based consolidation, to bring in macro-economic stability while curtailing inflation.

Although, inflation has slowed down from record high levels last year, the IMF officials noted that inflation has to come down durably.

Australia’s Defence Force is set to forge closer military ties with Sri Lanka

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By: Staff Writer

Colombo (LNW):Australia’s Defence Force is set to forge closer military ties with Sri Lanka and other countries in the north-east Indian Ocean, as the federal government weighs human rights concerns against urgent regional security fears.

Following the new Defence Strategic Review, published in abridged declassified form last week, the government is preparing to expand the longstanding Defence Cooperation Program beyond the Pacific, South-East Asia and south Asia, into countries on the Bay of Bengal and the Andaman Sea.

This expanded program is expected to include Sri Lanka, the Maldives and Bangladesh – all of which have previously expressed a desire for more engagement.

It is also likely to entail a further broadening of ties with India, which is a member of the Quadrilateral Security Dialogue, or Quad, alongside Australia, Japan and the United States.

But the expansion will not include Myanmar, whose military overthrew the democratically elected government in 2021 and jailed its leader, Aung San Suu Kyi.

The Defence Cooperation Program involves conducting joint military exercises, training partner countries’ personnel, participating in exchanges and secondments, hosting visits, holding strategic dialogues and contributing infrastructure support. It can also involve engaging in military operations together.

Last year’s October budget showed the long-running program involved 13 countries in the Pacific, most substantially Papua New Guinea, and another eight in South-East Asia. It is understood to already also include Pakistan, though the country was not listed by name.

The Saturday Paper asked the Defence Department this week for a list of other countries in which the program operates, and the current expenditure in each. It declined to provide this information.

“Details of the Defence Cooperation Program will be published as part of the Defence Portfolio Budget Statement on Budget night next Tuesday,” the department said in a statement.

The October budget allocated the program just under $400 million, including $34.4 million across South-East Asia, $50 million for PNG and $126 million across the wider Pacific.

Another $670,000 was allocated to the Defence International Training Centre, at which some partner countries’ forces receive training in Australia.

Defence Minister Richard Marles would not say which countries will now be added, but confirmed the north-east Indian Ocean is an additional focus. Marles insisted human rights issues in partner countries had always been factored into the program’s operations.

“He emphasized that this was “within the context and the parameters” of those human rights considerations. “But clearly we need to be … deeply engaged in our region, and the north-eastern Indian Ocean is part of our region.”

The Defence Strategic Review does not specify which countries the program expansion should include. One of those who helped write the review document, Professor Peter Dean, of Sydney University’s United States Studies Centre, says those decisions are a matter for government.

Sri Lanka Original Narrative Summary: 08/05

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01. Chairman of the National Delimitation Committee Mahinda Deshapriya says the final Committee report will be submitted in around the third week of May; reveals about 400 proposals received on the Committee’s interim report; asserts these proposals will be analysed and reviewed and the observations will be shared with the relevant stakeholders.

02. Sri Lanka’s Chief Free Trade Agreement Negotiator at the International Trade Office established at the Presidential Secretariat K.J. Weerasinghe says SL and Bangladesh plan to hold an introductory meeting virtually on May 29 to commence negotiations for the proposed Preferential Trade Agreement (PTA), which is expected to eventually lead to a Free Trade Agreement (FTA).

03. CBSL data show Sri Lanka’s external reserves amount to US$ 2,755 million ending April, up from US$ 2,694 million in March: The reserves continue to carry the US$ 1.4 billion equivalence of Chinese Yuan denominated swap facility from China’s People’s Bank obtained two years ago.

04. Disaster Management Centre report says more than 6,000 families have been affected by adverse weather conditions: a total of 6,345 people from 1,634 families in 10 districts including Kalutara, Gampaha, Badulla, Trincomalee, Ratnapura, Kegalle, Jaffna, Mullaitivu, Puttalam and Kurunegala; adds 87 houses have been partially damaged due to strong winds and flooding.

05. Finance State Minister Ranjith Siyambalapitiya says the customs duty concession of Rs. 3 provided for a kilo of wheat flour will be removed; asserts the reimposition of the duty will aim the management of wheat flour prices to protect the 90 per cent of subsistence level paddy farmers; stresses this will not affect in wheat flour price.

06. Power and Energy Minister Kanchana Wijesekara says 211MW of renewable energy has been added in to the Energy Mix in 2022, of which 146MW as RoofTop Solar; adds capacity addition of 3075MW of renewable energy and 1525MW of storage are expected between 2027 – 2030.

07. Sri Lanka’s monthly tourism earnings consistently stay above US$ 160 million a month in 2023: The April inflows brought the cumulative tourism income to US$ 696.3 million the first four months of 2023, up 17.8% from the same period in 2022: In March 125,495 tourists arrived in SL and in April, 105,498, bringing the cumulative arrivals to 441,177.

08. Bodies of two schoolboys washed ashore to Kokkuwil beach: The deceased identified as 16-year old students: Preliminary investigations reveal these two boys might have drowned after going to sea bathe: Investigations ongoing.

09. JVP/NPP Leader MP Anura Kumara Dissanayake says 88% of the country’s total population is borrowing, defaulting on loans or mortgaging items; laments 68% of the population has reduced the amount of food they eat or the number of meals they consume, and the people have been coerced into eating food that they don’t like; adds 40% of the population has slashed access to education and healthcare for children.

10. Amritha Incense Sticks, a leader and pioneer in the locally produced incense stick market, achieves a historic milestone by acquiring Sri Lanka Standards (SLS) certification: Amritha Incense Sticks are manufactured and distributed by Darley Butler & Company Ltd.

Over 6,000 people affected by adverse weather conditions: DMC

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By: Isuru Parakrama

Colombo (LNW): More than 6,000 people have been affected by the existing adverse weather conditions, announced the Disaster Management Centre (DMC).

According to a report by the Centre, a total of 6,345 people from 1,634 families in 10 districts have been affected by the adverse weather conditions, and these groups are from districts such as Kalutara, Gampaha, Badulla, Trincomalee, Ratnapura, Kegalle, Jaffna, Mullaitivu, Puttalam and Kurunegala.

In addition, 87 houses have been partially damaged due to strong winds and flooding.

The maximum rainfall of 117.4mm was reported from Jaffna, according to the Department of Meteorology.

Customs duty concession on wheat flour removed

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By: Isuru Parakrama

Colombo (LNW): The government will be removing the customs duty concession of Rs. 3 per kilo provided for wheat flour, revealed Finance State Minister Ranjith Siyambalapitiya.

Accordingly, the customs duty of Rs. 3 per kilo on wheat flour will be re-imposed and wheat flour prices will be managed to protect the 90 per cent of subsistence level paddy farmers, he added.

The removal, however, will not affect the price of wheat flour, the Minister pointed out addressing the media after attending an event held in Awissawella yesterday (07).