The World Bank has agreed to extend the aid for the agriculture sector modernization project implemented to introduce new technology to the agriculture sector in Sri Lanka for another 18 months.
The World Bank delegation that visited Sri Lanka recently led by John Kayser, agro-economist Mrs. Karishma Wash and senior operations officer Asela Dissanayake, discussed the project with the Minister of Agriculture, Mahinda Amaraweera.
The Minister requested the World Bank delegation to continue on with this project as this project has significantly contributed to the agricultural sector via modernization project.
Accordingly, the World Bank delegation has agreed to provide an amount of US$ 30 million to maintain this project for another 18 months from May this year.
Under this, agricultural sector modernization model villages will be started in all the 25 districts targeting different types of crops.
Also, aiming at exports, a sour banana model village in Jaffna, and two Cavendish banana projects in Batticaloa and Sevanagala areas will be started. The Agriculture Sector Modernization Project has already planned to start these activities in the month of May.
Like the Rajanganaya Sour Banana project, another cultivation project has been planned targeting Embilipitiya and Hambantota areas.
The minister emphasized in this discussion that while introducing new technology to agriculture, the project is already very successful in obtaining more yield from minimum land area, planting crops according to international standards, producing according to world market standards and familiarizing farmers with new technology.
Mr. John Kayser, the team leader of the World Bank delegation, expressing his views emphasized that he will give his maximum support to increase agricultural production by using modern technology instead of traditional agriculture in Sri Lanka.
Sri Lanka counts down to IMF bailout seen as ‘just the beginning’
Sri Lanka is counting the minutes to Monday, when the International Monetary Fund’s executive board is expected to approve a $2.9 billion bailout for the bankrupt island nation.
For the first time in months, many are hopeful that the IMF’s decision will kick-start the country’s recovery from its worst economic crisis since independence from Britain in 1948.
Faced with deepening poverty under high inflation, scarce foreign reserves and dire shortages of essentials, Sri Lanka is on the cusp of the bailout after China offered additional financing “assurances” required by the fund, following months of tough negotiations.
Beijing’s apparent hesitance to extend support drew comparisons to a more obliging India. But Sri Lanka’s ambassador to China, Palitha Kohona, strongly defended the country’s key bilateral lender, telling Nikkei Asia.
The Chinese bureaucracy works according to its own rhythm.” Experts stress just how crucial the final IMF approval is for stabilizing Sri Lanka’s economy, after the turmoil that brought down President Gotabaya Rajapaksa last year.
World Bank extend the aid for the Sri Lanka agriculture sector modernization
Showers or thundershowers to occur in most parts of SL
By: Isuru Parakrama
Colombo (LNW): Showers or thundershowers will occur at several places over most parts of the island during the afternoon or night, and showers may occur in Western and Sabaragamuwa provinces and in Nuwara-Eliya, Galle and Matara districts during the morning as well, the Department of Meteorology said in a statement today (20).
Fairly heavy showers above 50mm are likely at some places in Western, Sabaragamuwa, Central, Uva, North -Central and Eastern provinces and in Galle and Matara 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 in the sea area around the island. |
| Winds: |
| Winds will be southerly to south-westerly and wind speed will be (20-30) kmph. |
| State of Sea: |
| The sea areas around the island will be slight to moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers. |
Rupee could fluctuate from time to time: State Minister
Although certain parties have accused the Central Bank and the government of artificially strengthening the value of the rupee against the dollar, State Minister for Finance Ranjith Siyambalapitiya said that it has been confirmed that the value of the rupee is determined by the demand and supply of the dollar and that it may fluctuate from time to time.
He made these remarks responding to a question raised by journalists during a program in Dehiowita today that the rupee has depreciated compared to last week.
He said that although the Central Bank is still in a weak position in terms of foreign reserves, it is trying to have a reserve of at least 5 billion US dollars.
He said the government expects to have a positive effect on the economy after receiving the IMF loan, funds from the World Bank and the Asian Development Fund in the next few days.
” It will affect the increase in foreign reserves, the strengthening of the rupee and the decrease in commodity prices,” he said.
Meanwhile, Sri Lanka is on the verge of getting the first tranche of the crucial International Monetary Fund (IMF) Extended Fund Facility (EFF), a four-year US$ 2.9 billion program after an IMF Board Meeting on March 20.
State Minister Siyambalapitiya said that the agreements made between the IMF and Sri Lanka thus far
State Minister Siyambalapitiya said that the agreements made between the IMF and Sri Lanka thus far, will be presented in Parliament next week
Ideal Motors, a leading vehicle manufacturer and an assembling company in Sri Lanka, recently delivered a range of ‘Combat All Terrain Vehicles’, which are specially designed for use on rough terrains and manufactured using local technology, to the Sri Lanka Navy’s Marine Corps. Ideal Motors has taken the initiative to locally manufacture these ATVs, with the technical support from Mahindra and Mahindra – India. Components such as the engine, gear system and the chassis were all sourced from the Mahindra Company in India.
The vehicles’ design and the manufacture of other vehicle parts were carried out by local engineers, and it has been proven via extensive testing that these ATVs are well built and suit any terrain.
Three of these ATVs, which were specially designed to suit the requirements of the Marine Corps, were recently handed over to the Sri Lanka Navy.
Ideal Motors states that this locally manufactured ATV can be purchased at a cost of Rs. 8 million whereas, if imported to Sri Lanka, an ATV of similar capacity, would cost approximately Rs. 20 million.
A three-year warranty period along with a 24-hour breakdown assistance service is also on offer for customers by Ideal Motors.
Sri Lanka Original Narrative Summary: 20/03
- President Ranil Wickremesinghe says if IMF identifies Sri Lanka as a non-bankrupt country, the Govt would get an additional 10 years to repay the debt that has to be paid this year: also says compared to the Dollar, the Rupee has now gone up to Rs 300 and that after the agreement with IMF, the Rupee will gradually come down to Rs 200 or Rs 185.
- Minister of Ports Nimal Siripala de Silva says he has requested representatives of the SriLankan Airline agencies to reduce prices of air tickets proportionate to the decrease in value of the USD, which has already resulted in a 20% reduction in air ticket prices.
- President Ranil Wickremesinghe orders the immediate dissolution of the Education Ministry’s Teacher Transfer Board, resulting in the cancellation of approximately 12,500 teacher transfers.
- Senior Adviser to President on National Security and Presidential Chief of Staff Sagala Ratnayaka takes steps to address a number of issues, including pension and salary disparities among the members of Tri Forces and differently-abled war heroes that have been unresolved for over 10 years.
- Ministry of Finance says an interest free loan of Rs 1.1 mn would be granted to students to pursue higher education even if they are unable to enter University: repayment after receiving jobs.
- National Building Research Organization issues landslide warnings for the districts of Badulla, Kegalle & Kurunegala: says there is a high risk of landslides occurring in these areas with the possibility of rocks and earth falling onto roads, homes & other buildings.
- CB Governor Nandalal Weerasinghe says amidst the appreciation of the rupee, the US dollar crisis has ended: says “we have enough dollars to service all sectors”: analysts point out the LKR has depreciated over 7.5% in the past week and the USD is now trading in the grey market at over Rs.380.
- President’s office directs the slashing of overseas allowances for Ministers, MPs and senior officials: travel for public officials for training programmes, study tours, conferences, discussions and tours also banned.
- People’s Bank squashes rumors and insists it has not received any direct or indirect requests or instructions from any State institution to close their accounts with the bank: says the bank has always been a trusted partner for State organisations in providing reliable financial services.
- Ministry of Finance says electronic methods are to be made compulsory for the payment of personal taxes from April 1: appropriate amendment to the IR Act introduced by the Minister of Finance.
Sri Lanka’s economy’s contraction persists in this year as well
Hot on the heels of the worst ever contraction of 7.8% in 2022, the economy’s struggle is persisting and recovery remains most challenging this year as well judging by the latest update from the Purchasing Managers Indices.
The February PMIs for both manufacturing and services activities reflect further contraction reinforcing the view that the confidence factor is far from being restored despite multiple Government efforts to stabilize and spur economic growth.
Other analysts opined that the macro and policy environment in the first two months of the New Year weren’t conducive to stimulating the economy.
The Manufacturing PMI recorded an index value of 42.3 in February its compiler Central Bank (CBSL) said, and added it indicated a continued setback in manufacturing activities on a month-on-month basis.
This setback was driven by subdued performance observed in new orders, production, employment and stock of purchases, CBSL said.
The services sector PMI, CBSL aid, dropped to an index value of 48.7 in February indicating a deterioration across the services sector. This was driven by the declines observed in new businesses, business activities, employment and backlogs of work.
New businesses declined in February compared to January, particularly with the decreases observed in transportation, insurance and postal and courier sub-sectors
The data showed some improvement in Sri Lanka’s fiscal position with inflation moderating to about 50 percent in February, down from a record high of 69.8 percent in September.
President Ranil Wickremesinghe has raised taxes and ended generous subsidies on fuel and electricity to boost government revenue after his predecessor defaulted on Sri Lanka’s $46bn foreign debt last year.
The reforms are a precondition of a $2.9bn rescue package from the IMF, which Sri Lanka expects to finalize next week.
But the tax and price hikes have been roundly unpopular, triggering protests and industrial stoppages around the country.
Sri Lanka aims to announce a debt-restructuring strategy in April and step up talks with commercial creditors ahead of an IMF review of a bailout package in six months, its central bank governor said last week.
Wickremesinghe has said Sri Lanka can expect to remain bankrupt until at least 2026 and insisted his government has no option but to implement the reforms demanded by the IMF.
The census and statistics department said the agriculture sector shrank 4.6 percent last year, while industries contracted 16 percent, and services dropped 2 percent from a year earlier.
India reiterates its support to Sri Lanka under ‘Neighbourhood First’ policy
India says under its ‘Neighbourhood First’ policy it has always come forward to help debt-ridden Sri Lanka, and in the latest instance New Delhi has distributed rations in Kalmunai.
Taking to Twitter, the High Commission of India in Colombo said, “Support by @IndiainSL to needy sections continues!! Glimpses of ration distribution in Kalmunai.”
The cash-strapped country in April declared its first-ever debt default in its history as the economic crisis since independence from Britain in 1948 triggered by forex shortages sparked public protests.
The island-nation plunged into a financial crisis after the Covid-19 pandemic affected tourism, which is considered the country’s economic backbone, and remittances from citizens working abroad fell.
The war in Ukraine escalated the crisis as prices for imports, particularly fuel, rose sharply due to soaring inflation. And in such a situation, India offered its help to the debt-ridden country.
The Executive Board of the IMF is scheduled to meet on March 20 to consider Sri Lanka’s request for a bailout, and if approved, the first tranche of the facility would be released shortly.
Meanwhile, Sri Lankan President Ranil Wickremesinghe has assured the country’s official bilateral creditors of transparency, equal treatment of all creditors, and equitable burden-sharing of all restructured debt in resolving the country’s economic crisis.
The new legislation will prioritize controlling inflation and introduce an inflation target, Weerasinghe said, adding that the finance minister and the central bank would together agree on what that target should be.
Sri Lanka will also eventually set up a separate entity to raise funds to settle its sovereign debt, removing that responsibility from the central bank, once the new legislation is passed, he said.
India announced a USD 1 billion line of credit to Sri Lanka last year as part of its financial assistance to help the country deal with its economic crisis.
After an agreement to extend the line of credit was inked, Ministry of External Affairs (MEA) Spokesperson Arindam Bagchi had said India has always stood with the people of Sri Lanka and will continue to extend all possible support to the country.
A concessional credit facility of USD 1 billion was extended to the Government of Sri Lanka by the Government of India in March 2022 for supply of essential items including food, fuel, medicines, industrial raw materials.
Till date, lines of credit worth over USD 4 billion have been extended to Sri Lanka in diverse sectors including supply of essential items, petroleum, fertilisers, development of railways, infrastructure, defence sector and renewable energy, the statement said.
Uber Eats introduces e-cycles to delivery in Sri Lanka
Uber Eats, Sri Lanka’s most popular food and grocery delivery platform brought on board 100 SL marketing fraternity steps up efforts in fixing the country’s falling electric cycles on its platform.
The e-cycles launched as ‘Voltage Edition’ are manufactured by Lumala, the country’s largest cycle manufacturer, and have been especially designed for deliveries.
They have a range of up to 100 kilometers and top speed of up to 30 kilometres per hour. Uber Eats was the first platform to introduce cycle deliveries in Sri Lanka last year.
The e-cycles can cover longer distances than regular bicycles and are easier to maintain than traditional motorbikes.
The cycle battery charges in 4 hours: this makes delivery downtime minimum and reduces expenses versus fuel costs. By making it easier to cover a bigger delivery distance radius with lesser effort, delivery partners will be able to potentially make more deliveries and earn more.
The initiative is a step forward towards Uber Eats’ global vision of moving all trips to sustainable mobility by 2040.
The announcement was made at an event recently where Uber Eats sponsored e-cycles worth Rs 42 million for 100 most engaged delivery partners. 90 of these delivery partners were previously using petrol-powered motorbikes while the other 10 were using regular bicycles.
The company will also facilitate a 30% discount on the purchase of Lumala e-cycles and 15% discount on spare parts for delivery partners on its platform.
Power & Energy Minister for Sri Lanka, Kanchana Wijesekera, graced the occasion as the Chief Guest, congratulated Uber Eats on its sustainability focus and gave away the e-cycles to select delivery partners.
He was joined by the Guest of Honour, Julie J. Cheng, US ambassador to Sri Lanka; along with Mike Orgill, Senior Director, Public Policy & Government Relations, Asia Pacific Region at Uber; and, Pivithuru Kodikara, Interim General Manager, Uber Eats Sri Lanka, among others.
Commenting at the event, Minister Kanchana Wijesekera, said, “Technology-led platforms led a paradigm shift by changing the way people move or order food online. Now, they should focus on another big change by promoting green mobility.
Uber Eats had introduced cycle deliveries last year to reduce fuel dependency for delivery partners during the economic crisis. Today, cycle deliveries account for 10 per cent of total deliveries for Uber Eats in Sri Lanka. With e-cycles, Uber Eats takes the next step towards sustainable mobility and paves the way for e-bikes and e-scooters on its platform in the future.
Commenting on the announcement, Mike Orgill, Senior Director, Public Policy & Government Relations, Asia Pacific Region at Uber, said, “They are committed to Sri Lanka and are continually bringing the best that Uber Eats has to offer to the country.
SL marketing fraternity steps up efforts in fixing the country’s falling image
Sri Lanka’s marketing fraternity is stepping up efforts to correct island nation’s image in the eyes of the international community, given the negative sentiments that are still largely prevalent.
The national body of marketers, the Sri Lanka Institute of Marketing (SLIM) has kicked off a fresh initiative that will focus on rebranding the country
he institution unveiled the inaugural ‘Brand Sri Lanka Creation Symposium’ by bringing together the experts in branding, business leaders and policy influencers, to roll out the endeavor the relatively.
Accordingly, efforts are underway to explore and pool in innovative ideas and strategies that can help crisis-struck Sri Lanka to stand out, as it looks to start a new chapter in its economic development and growth agenda.
As several attempts by diverse stakeholders in appropriately branding the island nation have failed in the recent past, SLIM expressed confidence in having what it takes to fix Sri Lanka’s image in a global context.
“Over the last many months, SLIM has been trying to create awareness about the need for such a nation branding strategy.
It was also important to understand where we actually stood in the eyes of the world and for that we had to immerse ourselves in a worldwide research,” said SLIM President Nuwan Gamage.
He added that in the next few decades, the national marketing body hopes to leverage the resources available to co-craft and assist those in power to lead a policy-led strategy that is also anchored on sustainability and solving issues that are not just relevant to Sri Lanka but the rest of the world.
This should ideally enable the world to see Sri Lanka through a new paradigm,” said Gamage. According to Nation Branding Project Chairperson Kavi Rajapaksha, the initiative aims to curate and adapt the right nation branding strategy, which would organically reinstate respect and consideration for our mother Lanka and its creations
Due to the boom in social media, the struggle of the people was very much noticed by the international community, which has led to the perception that the country is witnessing amplified poverty.
Poorly constructed comments by politicians in international fora have added to the problem, making it only difficult for the island nation to emerge from its image that has taken a massive hit.
Sri Lanka Original Narrative Summary: 19/03
01. The Bar Association writes to President Ranil Wickremesinghe regarding the appointment of the next IGP; stresses it is of “utmost importance that the next IGP should be an officer whose service in the Police force is exemplary and free of any blemish and able to restore public confidence in the Sri Lanka Police”: Reports emerge that SDIG Deshabandu Tennakoon is about to be appointed as the 36th IGP of the Sri Lanka Police.
02. The Bar Council of England and Wales in a press statement says it hopes “parliamentary authorities in Sri Lanka will reconsider most carefully the appropriateness of questioning Supreme Court Judges before a parliamentary committee,” and adds that it “similarly hopes that the Sri Lankan government will consider most carefully whether it can be ever be right to encourage disobedience to court orders.”
03. State Finance Minister Ranjith Siyambalapitiya says the agreements made with the IMF will be presented to Parliament by President Ranil Wickremesinghe next week; asserts the Opposition and people of diverse opinions will be able to submit their recommendations then.
04. The official term of 340 LG bodies to end midnight today: The power of 29 Municipal Councils to be transferred to the Municipal Commissioners and the power of 36 Urban Councils and 275 Pradeshiya Sabha to the Secretary of each body.
05. State Minister Sisira Jayakody stresses the LG Polls will ‘not’ be held on April 25, 2023 as declared by the Election Commission; asserts the next Presidential Polls will be declared in November.
06. Former MP J. Sri Ranga who was arrested for allegedly pressuring witnesses to a case involving a twelve-year old road accident in Vavuniya remanded till March 20, 2023 as ordered by the Mt. Lavinia Magistrate Court.
07. Sri Lanka’s popular food and grocery delivery platform ‘UberEats’ brings on board 100 electric cycles manufactured by ‘Lumala,’ the country’s largest cycle manufacturer, paving the way for e-bikes and e-scooters on its platform in establishment of sustainable mobility in delivery.
08. India says under its ‘Neighbourhood First’ policy it has always come forward to help debt-ridden Sri Lanka, and in the latest instance New Delhi has distributed rations in Kalmunai: President Ranil Wickremesinghe assured the country’s official bilateral creditors of transparency, equal treatment of all creditors, and equitable burden-sharing of all restructured debt in resolving the country’s economic crisis.
09. The Sri Lanka Institute of Marketing (SLIM) kicks off a fresh initiative, ‘Brand Sri Lanka Creation Symposium,’ to correct the island nation’s image in the eyes of the international community; focuses on rebranding the country by bringing together the experts in branding, business leaders and policy influencers against negative sentiments that are still largely prevalent.
10. The 144th ‘Battle of the Blues’ between Royal College, Colombo, and St. Thomas College, Mount Lavinia concluded with a victory for Royal College: First inning RC 326/08; St. TC 153 all out: Second inning RC 168; St. TC 161: The Award Ceremony held under President Wickremesinghe’s patronage: RC declares March 20 a special holiday.
ICJ asks Govt. to respect court order on LG polls
The International Commission of Jurists (ICJ) has called upon the Sri Lankan Government to respect the Interim Order of the Supreme Court and to ensure that funds are available to hold local elections.
The ICJ said the Speaker of Parliament Mahinda Yapa Abeywardena must also withdraw his referral of Supreme Court Judges for inquiry of a potential breach of parliamentary privileges. Commenting on Government MP, Premnath Dolawatte’s request to the Speaker to refer the conduct of the judges of the Supreme Court who gave the interim order pertaining to local Government Elections as a breach of Parliamentary Privileges, the ICJ said this act and the Speaker’s acceptance of the request constitute a serious and unwarranted encroachment on the independence of the judiciary and the judicial function.
“It is a fundamental rule of law principle that the judiciary has jurisdiction over all issues of a justiciable nature, including questions regarding its own jurisdiction and competence,” ICJ Legal and Policy Director Ian Seiderman said. “It is not for any political actor to determine whether the Supreme Court has acted within its authority” he added.
The ICJ said it is particularly concerned that on 10 March, State Finance Minister Shehan Semasinghe told Parliament that “it is a serious offence to implement the interim order before hearing the privilege issue by the Parliamentary Committee on Ethics and Privileges.” The Minister then requested the Deputy Speaker to advise all relevant authorities not to act on matters relating to the polls until the said Parliamentary Committee concludes its inquiry on the matter.
The ICJ stressed that the Interim Order issued by the Supreme Court instructing the Finance Ministry Secretary and the Attorney General not to withhold funds for local Government elections must be carried out. “Refusal to respect an interim order made by the Supreme Court and referring it for an inquiry by Parliament breaches the separation of powers and sets a dangerous precedent in a country where the independence of the judiciary is already fragile,” Seiderman said.
The ICJ recalled that the UN Basic Principles on the Independence of the Judiciary state that “it is the duty of all governmental and other institutions to respect and observe the independence of the judiciary” and “there shall not be any inappropriate or unwarranted interference with the judicial process, nor shall judicial decisions by the courts be subject to revision.”
DAILY FT