Jaya Container Terminals Limited (JCT Limited), a fully owned subsidiary of the Sri Lanka Ports Authority (SLPA), has seen phenomenal growth and turnover in the recent past, despite the fuel crisis that prevailed in Sri Lanka.
This is largely due to the fact that JCT was able to provide Marine Gas Oil (MGO) to various segments of the private sector that required fuel for their daily operations. This included the garment industry, the tourism industry and much more.
The provision of MGO to these sectors was an additional service provided by JCT that resulted in an exponential increase in revenue and profit.
Another significant contributor to the company’s forward march was its ability to transform from High Sulphur Fuel to Low Sulphur Fuel.
This occurred in 2020, due to a requirement from the International Maritime Organization (IMO), to accommodate only LSFO. However, JCT was able to accommodate High Sulphur Fuel also if required. This also added significantly to the income that was reflected in the year 2022.
Since 2008, JCT’s primary business has been to store marine fuel, including Low Sulphur Fuel (LSF) and Marine Gas Oil (MGO) for seagoing vessels. The facility spans over 9 acres and initially consisted of 13 fuel tanks with the capability to store a capacity of 35,000 MT of marine fuel.
JCT’s reached unprecedented heights as it accumulated a 275% increase in profits in 2022. This was due to an unprecedented earning of Rs. 608 million in revenue for 2022, which is a 104% increase from the year 2021 and a 180% increase from 2020. The fluctuating currency exchange rates also played a role in the increase of the profits, adding 40% to it.
This revenue has a significant impact on the country’s economy, as the Colombo Port plays a direct and integral role in it. A plethora of JCT’s clientele also play a significant role in the provision of fuel for the ships that visit the port, which is in turn a vital service for the Colombo Port.
The company is now in the process of enhancing its storage capacity in order to facilitate larger volumes of fuel at a lower cost. This will also allow JCT’s customers to distribute fuel at a lower cost, which in turn is an advantage to the Port of Colombo as it can provide competitive prices for those who require marine fuel.
By the end of 2021, the JCT had constructed an additional 3200 MT capacity tank, which was opened in 2022. There are plans that have been set in motion to install even more tanks in the future. Additionally, a brand-new fire safety system was also introduced as a safety measure.
Jaya Container Terminals Ltd gains phenomenal growth and turnover
Sri Lanka to receive the first tranche of US$2.9 billion IMF EFF in 2 days
Sri Lanka is expected to receive the first tranche of funds from the International Monetary Fund (IMF) in 2 days, Peter Breuer, Chief of the Debt Capital Markets Division, Monetary and Capital Market Department at the IMF said.
He said Sri Lanka has incorporated a number of measures to commence the reforms process, as agreed upon with the IMF.
Breuer also said that steps are being taken to make the Central Bank of Sri Lanka more independent.
The IMF also said that the disbursement of the funds under the agreement with Sri Lanka, will be tied to reviews of Sri Lanka’s economic policies, which will take place every 6 months.
The IMF Executive Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 2.286 billion (about US$3 billion) to support Sri Lanka’s economic policies and reforms.
Sri Lanka has been facing a severe economic crisis as a result of past policy missteps and economic shocks. We have been deeply concerned about the impact of the crisis on the Sri Lankan people, particularly the poor and vulnerable groups, and about the economic costs of the delay in the country’s access to external financing.
The Board approval marks an important step towards the resolution of the crisis—Sri Lanka will immediately receive an initial disbursement of about US$330 million from the EFF arrangement, which is expected to catalyze new external financing including from the Asian Development Bank and the World Bank.
Commendably, Sri Lanka has already started implementing these challenging policy actions. It is now essential to continue the reform momentum under strong ownership by the authorities and the Sri Lankan people more broadly.
The authorities have committed to fundamentally improve public financial management and strengthen the anti-corruption legal framework in line with the United Nations Convention against Corruption.
The economic impact of the reforms on the poor and vulnerable needs to be mitigated with appropriate measures. In this regard, we welcome the authorities’ firm commitment to strengthen social safety nets, including through a minimum spending floor, well-targeted spending through a new Social Registry, and establishment of objective eligibility criteria.
Tax reforms under the program are designed to be progressive, that is, ensuring greater contributions from high-income earners. Efforts to increase tax revenues should be pursued in a growth-friendly manner while protecting the poor and most vulnerable.
Sri Lanka’s public debt, at 128 percent of GDP as of end-2022, is unsustainable. The country is in arrears to all its external creditors.
IMF Board approval of assistance to Sri Lanka required assurances from official bilateral creditors that they will provide debt relief and/or financing to restore debt sustainability consistent with the program, as well as an assessment that the authorities are making good faith efforts to reach a collaborative agreement with private creditors.
It is now important for the Sri Lankan authorities and creditors to closely coordinate and make swift progress towards a debt treatment that restores debt sustainability under the EFF-supported program.
The President’s recent open letter to official bilateral creditors includes commitments to transparency and comparability of treatment for all external creditors, which should help facilitate this process. IMF staff will continue to assist the authorities with creditor coordination in line with the IMF’s policies.
Dilan Perera appointed as Chair of the Sectoral Oversight Committee on Reconciliation and National Unity
Hon. Dilan Perera has been appointed as Chair of the Sectoral Oversight Committee on Reconciliation and National Unity (21) at the Committee meeting held in Parliament.
Accordingly, Hon. Mayadunna Chinthaka Amal proposed the name of Hon. Dilan Perera whilst Hon. Gevindu Cumaratunga seconded it.
The Chair addressing the Committee stated that as the Chair of the Sectoral Oversight Committee on Reconciliation and National Unity, he is happy that his name was proposed by a Member of the Government where as a member representing the Opposition seconded it with no Member opposing it.
Furthermore, the Chair stated that institutions such as Ministry of Justice, Prison Affairs and Constitutional Reforms, Office for National Unity & Reconciliation, Office on Missing Persons, Office for Reparations, Department of Community Based Corrections, Official Language Commission etc.. are scheduled to be brought before the Committee to discuss the way forward.
Members of Parliament Hon. A. L. M. Athaullah, Hon. Kulasingam Dhileeban, Hon. Mayadunna Chinthaka Amal, Hon. Gevindu Cumaratunga, Hon. (Ms.) Rajika Wickramasinghe, Hon. M. A. Sumanthiran and Hon. Hon. Isuru Dodangoda were present at the Committee meeting held.
Sri Lanka and India discuss way forward in bilateral economic cooperation
Sri Lanka’s High Commissioner to India Milinda Moragoda met with the Minister of Finance and Corporate Affairs of India Smt. Nirmala Sitharaman in New Delhi (March 21).
Minister Sitharaman and High Commissioner Moragoda also discussed the way forward in bilateral economic cooperation.
The ways and means to attract Indian investments to Sri Lanka, enhance bilateral trade, particularly through Indian Rupee trade expansion and increase the inflow of Indian tourists to Sri Lanka were explored and discussed.
This was the latest of a series of meetings High Commissioner Moragoda has had with Minister Sitharaman since November 2021 on Indian economic cooperation and assistance to Sri Lanka in the context of the present economic crisis.
At the outset, High Commissioner Moragoda thanked Minister Sitharaman for the leadership that the government of India took towards the realization of the International Monetary Fund’s Extended Fund Facility (EFF) Arrangement for Sri Lanka.
He particularly thanked Minister Sitharaman for her personal involvement in taking up Sri Lanka’s case with bilateral development partners as well as multilateral financial agencies including the IMF in this context.
The Minister and the High Commissioner agreed that these measures could form part of Sri Lanka’s economic recovery.
High Commissioner Moragoda also presented Minister Sitharaman with a copy of the publication “Geoffrey Bawa; Drawing from the Archives”, which contains the drawings of Sri Lanka’s iconic architect the late Geoffrey Bawa.
The publication was presented to her as a memento to mark the opening of the two month- long exhibition “Geoffrey Bawa: It Is Essential To Be There” which was inaugurated by the External Affairs Minister of India Dr. S. Jaishankar on 17 March 2023 at the National Gallery of Modern Art in New Delhi.
Meanwhile India and Sri Lanka agreed to increase intensity of bilateral military exercises and vowed to avail maximum benefits from each other’s experience and capacities, a move that came amid China’s attempts to expand its influence in the Indian Ocean region.
The two sides reviewed their defence and security cooperation at the seventh India-Sri Lanka annual defence dialogue that took place in Delhi.
“During the meeting, the ongoing defence cooperation activities between the two countries were reviewed, with both sides agreeing to increase the complexity of bilateral exercises,” the defence ministry said.
The annual defence dialogue is the highest institutionalized interactive mechanism between both the countries.
“Its significance in chartering the future course of the relations between the armed forces of India and Sri Lanka was highlighted by the importance given to the talks by both sides,” the ministry said.
The defence ties between India and Sri Lanka have witnessed steady expansion.In August last, India handed the island nation a Dornier maritime surveillance aircraft.
The aircraft was given to Sri Lanka from the inventory of the Indian Navy to help the country meet its immediate security requirement.
The Indian Navy has been supporting various capacity building measures of the Sri Lankan Navy including providing indigenously constructed Offshore Patrol Vessels (OPVs).
Sri Lankan Rupee further appreciated today
According to the foreign exchange rate notes issued by the commercial banks today (22), the price of the American dollar is further down compared to yesterday.
In the Bank of Ceylon yesterday (21), the buying rate of an American dollar was Rs. 315 and the selling rate is Rs. 333.54 and today those values are decreased to Rs. 311 and Rs. 329.54.
Yesterday (21) in Commercial Bank, the buying rate of an American dollar was Rs. 314.76 and the selling rate was Rs. 336 and today the values are Rs. 311.69 and Rs. 330.
The rate of an American dollar in several other commercial banks today is as follows.
Sri Lanka to assume the Chair of the Indian Ocean Rim Association in 3Q 2022
Sri Lanka will assume the Chairmanship of the Indian Ocean Rim Association (IORA) in the latter half of this year for the period from 2023 – 2025. In this role, Sri Lanka will build on the important work done by Bangladesh as the current Chair and the UAE as the past Chair.
Sri Lanka remained confident that collaboration among IORA Member States would lead towards a safe, secure, prosperous and sustainable Indian Ocean for the prosperity of its member states and beyond.
This was disclosed by Sri Lanka foreign secretary Aruni Wijewardena when she addressed the third Meeting of the Indian Ocean Rim Association’s (IORA) Working Group on Maritime Safety and Security (WGMSS).
It was chaired by Sri Lanka in Colombo on Monday (March 20) with the participation of the 23 IORA member states.
Inaugurating the meeting, Foreign Secretary Aruni Wijewardane highlighted the importance of the IORA as a forum for enhancing maritime cooperation in the Indian Ocean region.
In the area of Maritime Safety and Security, the topic under discussion at the Colombo Working Group, Foreign Secretary Wijewardane noted that the growing importance of the Indian Ocean requires awareness among IORA member states on related issues as well as of agreed principles and regulatory frameworks.
In the area of Maritime Safety and Security, the topic under discussion at the Colombo Working Group, Foreign Secretary Wijewardane noted that the growing importance of the Indian Ocean requires awareness among IORA member states on related issues as well as of agreed principles and regulatory frameworks.
The Indian Ocean rim region faces many traditional and non-traditional safety and security challenges including piracy, armed robberies at sea, transnational organized crimes such as human smuggling, human trafficking and drug trafficking, as well as illicit trafficking in wildlife, IUU fishing, ocean pollution, over-exploitation of marine resources, and illegal transport of hazardous material.
Climate change and the destruction of ocean biodiversity also challenge the safety and security of the Indian Ocean. Critical infrastructure connected to the ocean which is physically, digitally and environmentally vulnerable needs to be protected.
The Secretary General of IORA Secretariat Salman Al Farisi and representatives of the Secretariat participated in virtual mode from the IORA Secretariat in Mauritius.
Secretary General of IORA Salman Al Farisi, connecting in virtual mode highlighted that it is important for Member States to continue strengthening their dialogue and efforts to seek solutions to address common safety and security challenges in the region since Maritime Security and Safety is a key development issue in the region.
Heads of Mission of IORA member states and dialogue partner countries based in Colombo; Commander of Sri Lanka Navy; senior officials of relevant ministries and government agencies including Ministry of Fisheries, Sri Lanka Navy, Sri Lanka Coast Guard, Sri Lanka Ports Authority (SLPA), Merchant Shipping Secretariat, Disaster Management Center (DMC) and Marine Environment Protection Authority (MEPA), the Global Maritime Crime Programme (GMCP) of United Nations Office on Drugs and Crimes; and officials of the Max Planck Foundation, as well as representatives of the GIZ, attended the inauguration event.
Representatives of the following IORA Member States from Australia, Bangladesh, Comoros, France, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Maldives, Mauritius, Mozambique, Oman, Seychelles, Singapore, Somalia, South Africa, Sri Lanka, Tanzania, Thailand, United Arab Emirates and Yemen were present.
A three-day workshop “Cooperation for Maritime Security” jointly organized by the Ministry of Foreign Affairs and the Max Planck Foundation for International Peace and the Rule of Law is being held from 21 to 23 March, on the sideline of the WGMSS meeting.
India promotes institutional linkages between the Armed Forces of two countries
India is now promoting institutional linkages between the Armed Forces of India and Sri Lanka arranging study tours help strengthen the existing bonds of camaraderie and enhance people to people connect to achieve regional peace, security and stability.
This was one of the major outcomes of India’s ‘Neighbourhood First’ Policy seeks to further strengthen bilateral economic defense cooperation bet ween the two countries in the South Asian region.
A delegation of 19 Indian Armed Forces officers led by Group Captain Yunus Syed Muzaffar from the 46th Indian Higher Air Command Course conducted at College of Air Warfare, Secunderabad arrived in Sri Lanka as part of Strategic Study Tour from 20-24 March 2023.
The visit is focused on interactions with senior defence hierarchy as well as visits to military establishments and industrial organizations to broaden the vision of the trainees.
The delegation started their visit by paying homage to the martyrs of Indian Peace Keeping Force at the memorial in Battaramulla followed by interactions with High Commissioner of India, Gopal Baglay, Chief of Defence Staff, General Shavendra Silva and Air Marshal S.K Pathirana, Commander of Sri Lanka Air Force.
The delegation is also scheduled to visit Galle, Hambantota, Diyatalawa, Kandy and Katunayake and interact with various agencies to get deeper insights about Sri Lanka.
The longest ongoing struggle in Sri Lanka marks 2222 days
Today, 2,222 days have passed since the struggle started by the relatives of those who were forced to disappear in the North East.
The mothers, fathers and relatives of the disappeared people have been continuing this struggle for 2222 consecutive days by protesting, satyagraha, agitations, demonstrations etc., demanding to find their missing loved ones, to reveal the truth about these disappearances and to do justice to them.
This is considered to be the longest ongoing struggle in Sri Lanka.
Sri Lanka Original Narrative Summary: 22/03
- IMF to release the first tranche of the 4-year loan of USD 2.9 bn amounting to about USD 332 mn in the next couple of days.
- IMF reveals Sri Lanka will search for options to “restructure” domestic debt: says the authorities and their financial advisors will weigh options and associated legal procedures to optimise the design of a local debt treatment: authorities expected to announce parameters of such external & domestic debt operations before end-April: previously, CB Governor Nandalal Weerasinghe asserted there would not be any local debt restructure.
- IMF to start “in-depth governance diagnostic exercise” on Sri Lanka, a first in Asia: wealth transfer tax & inheritance tax also to be introduced in Sri Lanka from 2025: Ceylon Chamber of Commerce congratulates Govt on securing IMF Programme.
- Mission Chief for Sri Lanka and Asia Pacific, IMF Masahiro Nozaki says the Central Bank must purchase USD 1.4 bn from the market in 2023 to rebuild the reserve: says a period of 4-10 years granted to repay the new loan from the IMF.
- Moody’s Analytics says Sri Lanka has a difficult road ahead irrespective of how much funding it receives from multilateral and global financial agencies: asserts “the IMF support is definitely not like the silver bullet they think”: also says the exuberance will fade unless there are some significant improvements from the Govt.
- SJB General Secretary Ranjith Madduma Bandara files a contempt of court charge before Supreme Court against Treasury Secretary Mahinda Siriwardene for not complying with a court order not to withhold allocated funds through the Budget to hold LG polls.
- NCPI rate of Inflation almost flat at 53.6% in Feb’23 from 53.2% in Jan’23: food inflation decreases to 49% from 53.6% in Jan’23: non-food Inflation increases to 57.4% in Feb’23 from 52.9% in Jan’23.
- Justice Minister Dr Wijeyadasa Rajapakshe and Foreign Affairs Minister Ali Sabry to visit South Africa to further study on establishing a “Truth and Reconciliation Commission” in Sri Lanka.
- Colombo University Economics Professor Sirimal Abeyrratne says he has not seen the IMF conditions for the loan as yet: asserts however that the programme will improve Sri Lanka’s credit worthiness enabling it to borrow from other financial institutions: also says there will be multi-lateral and bi-lateral lenders willing to provide funds to Sri Lanka, while the Govt could also access commercial borrowings.
- Energy Minister Kanchana Wijesekara says fuel prices would be reduced by a considerable margin at the routine fuel price revision according to the fuel price formula next month: also says the Govt would be able to procure fuel shipments at a lower and competitive bidding after the IMF bailout.
A special meeting between Milinda Moragoda and the Indian Finance Minister
A special meeting was held yesterday (21) between the High Commissioner of Sri Lanka to India Milinda Moragoda and the Indian Finance Minister S. Nirmala Sitharaman.
It is in New Delhi, India.
Since November 2021, several rounds of discussions were held between Milinda Moragoda and the Indian Finance Minister regarding India’s support to Sri Lanka and assistance to Sri Lanka.
The meeting was held yesterday as another step in the series of discussions and the High Commissioner expressed the gratitude of the Sri Lankan people to India for the crucial support given by the Indian government to Sri Lanka in obtaining the extended credit facility of the International Monetary Fund.
Also, in view of the current situation, High Commissioner Milind Moragoda has expressed special thanks for Sitharaman’s personal intervention to solve the problem in Sri Lanka with bilateral development partners and multilateral financial institutions including the International Monetary Fund.
Also, in this meeting, special attention has been paid to the issues of bilateral economic cooperation between the two countries, attracting Indian investors for investment opportunities in Sri Lanka and increasing the number of Indian tourists coming to Sri Lanka.