1. Fitch Ratings’ decision to cut SL’s local Credit Rating by 2 notches from “CCC” to “CC” attributed by experts to probability of a local debt default in view of untenably high domestic interest rates: within hours of assuming office, Governor Nandalal Weerasinghe doubled interest rates on 8th April 2022.
2. Asian Development Bank VP Shixin Chen meets PM Dinesh Gunawardane: says international monetary agencies are impressed with the strength of Sri Lankan leadership and its commitment to achieve speedy economic revival through reforms.
3. Energy Minister Kanchana Wijesekera says the production cost of a unit of electricity will be Rs.56.90 if the country were to have uninterrupted power supply in 2023: calls for across-the-board sale price of Rs.56.90 per unit with a cash allowance to low income families: as per CEB data, the current average tariff for a unit is Rs.29.14 and the deficit is Rs.423.5 bn.
4. SLPP National Organizer Basil Rajapaksa says selection of Ranil Wickremesinghe as President was the right choice: also says every party and opposition group should be able to engage in politics freely: expects economic and other problems to be solved in the future: asserts SLPP has not been divided.
5. Former CB Governor Ajith Nivard Cabraal points out that the Sri Lanka Rupee has been “fixed” since 12th May 2022 by current CB Governor Nandalal Weerasinghe for the past 207 days at around Rs.370 per USD: asserts there has been no increase in net forex inflows from exports or remittances compared to inflows when the Rupee was “fixed” at around Rs.200 per USD during the Cabraal tenure.
6. Institute of Policy Studies’ Dushni Weerakoon calls for reforms in economic resources – labour, land, money and entrepreneurship: expresses disappointment that Budget 2023 did not contain measures to strengthen these factors.
7. Minister of Education Susil Premajayanth says the Ministry is assessing the possibility of providing sarees free of charge to women teachers who are unable to buy sarees due to economic hardships.
8. Colombo Chief Magistrate dismisses private complaint that sought an order to arrest Senior DIG Deshabandu Tennakoon on dereliction of duty charges re. the incidents near Temple Trees and at Galle Face on 9th May.
9. Family of Sri Lankan Rajan Moonesinghe who was fatally shot by US Texas Police last month on his front porch, seek answers: video and audio said to show Texas Police officers yelling “drop your gun”, and then firing at Moonesinghe, who was holding a weapon.
10. Lanka Premier Cricket League 3rd Edition to kick-off today at Hambantota: 42 Sri Lankan cricketers and 30 overseas players to compete.
Sri Lanka Original Narrative: 06/12
India assumes G20 Presidency on 1 December 2022
In a historic moment, India formally assumed the G20 Presidency, from Indonesia, on 1 December 2022. The G20, or Group of Twenty, is an intergovernmental forum of the world’s 20 major developed and developing economies, making it the premier forum for international economic cooperation.
2 On the occasion, Prime Minister penned an article outlining India’s vision for the G20 Presidency. This was carried by publications across the world. In his article, the Prime Minister said that India looks forward to a Presidency of healing, harmony and hope.
3. A key element of India’s G20 Presidency will be taking the G20 closer to the public and making it truly a ‘People’s G20’. To realize this, citizen engagement and large scale public participation through various Jan Bhagidari activities are planned throughout the year.
4. To mark the first day of India’s Presidency, numerous activities were planned. Earlier in the day, a special University Connect event was organized, which virtually brought together students from 75 universities across the country. External Affairs Minister, Dr. S. Jaishankar and Principal Secretary to Prime Minister, Shri P.K. Mishra were among the distinguished speakers at the event. The University Connect event aimed at engaging the youth in G20 activities. School students were also involved through special G20 sessions in various schools.
5. Taking people participation further, The Hornbill Festival in Kohima featured a special focus on G20. One hundred monuments, including some UNESCO World Heritage sites, were specially illuminated, and citizens were invited to join a selfie campaign on MyGov around these illuminated monuments. Sand artist Shri Sudarshan Pattnaik created sand art of India’s G20 logo on Puri beach in Odisha.
6. The G20 website recently launched by the PM also seamlessly migrated to the g20.org domain today and India took over the official social media handles, including the twitter handle @g20org, from the previous Presidency.
7. Drawing inspiration from its G20 Presidency theme of ‘Vasudhaiva Kutumbakam’ – ‘One Earth One Family One Future’, India will host over 200 meetings in over 50 cities across 32 different workstreams and would have the opportunity to offer G20 delegates and guests a glimpse of India’s rich cultural heritage and provide them with a unique Indian experience.
(Contents have been taken from the Press Release issued by Ministry of External Affairs in New Delhi.)
***
Colombo
2 December 2022
High Commissioner of Sri Lanka in Pakistan makes an official visit to Karachi
The High Commissioner of Sri Lanka in Pakistan Vice Admiral Mohan Wijewickrama visited Karachi from 26 to 29 November 2022 and engaged with the business communities and in promotional activities.
During his stay the High Commissioner formally handed over the Commission of Appointment to Barrister at Law and Senior Partner Mandviwalla & Zafar Mehmood Mandviwalla appointing him as Honorary Consul of Sri Lanka for Hyderabad in Sindh Province.
A networking dinner with the participation of prominent government, business and corporate entities was organized by Honorary Consul Mandviwalla at his residence and it was followed by the High Commissioner’s meeting and interaction with the Sri Lankans living in Karachi.
The High Commissioner also attended a networking luncheon on Monday, 28 November which was also attended by government and private sector representatives based in Karachi. Commissioner of Karachi M Iqbal Memon, Director General of Customs (Transits) of Pakistan Dr. Iftikar Ahmed, representatives of Karachi Chamber of Commerce & Industry, Pakistan – Sri Lanka Business Forum, Association of Builders and Developers of Pakistan, Pakistan Yarn Merchant Association, Pakistan Pharmaceutical Manufacturers Association, Rice Exporters Association of Pakistan, Pakistan Eye Bank Society and English-Speaking Union were present at the luncheon.
During the visit, the High Commissioner met with the President of the Pakistan – Sri Lanka Business Forum Aslam Pakhali and the office bearers, and discussed the way forward for enhancing the trade between the two countries.
Further, the High Commissioner attended a meeting organized by the Karachi Chamber of Commerce & Industry (KCCI), the premier chamber in Pakistan. The KCCI represents the Business and Industrial Community in Karachi, contributing more than 65% revenue to the national exchequer and a city of more than 22 million dwellers. It is the largest Chamber of Pakistan and the Sub-Continent.
Consul General of Sri Lanka in Karachi Jagath Abeywarna, Minister Counsellor of the High Commission of Sri Lanka in Pakistan U.L. Niyas and Honorary Consul of Sri Lanka for Hyderabad Mehmood Mandviwalla also participated in the events.
The Consulate General of Sri Lanka in Karachi organized and coordinate the programme for the High Commissioner in association with the private sector organizations in Karachi.
Consulate General of Sri Lanka
Karachi
05 December, 2022
LITRO Gas prices soar. New prices revealed
The prices of domestic LP gas cylinders will increase effective from midnight today (05) announced the state-run LITRO Gas Company.
The moves to increase the gas price at a minimum rate comes in in compliance with the price hike in the global market, to protect the local distributor, LITRO announced.
Below is the statement issued by LITRO revealing new gas prices:
MIAP
Diesel price slashed!
The price of auto diesel will be slashed by Rs. 10 per litre effective from midnight today (05).
The price revision has been approved by both the Ceylon Petroleum Corporation (CEYPETCO) and the Lanka Indian Oil Company (LIOC).
Accordingly, the new price of diesel will be Rs. 420 per litre.
MIAP
Dhammika Perera says his dream for DP Education come true
Dhammika Perera, Ruling Party MP, business magnet and founder of DP Education, said his dream for DP Education when he initiated it has now come true, in a candid statement publicised today (05).
The G.C.E. Ordinary Level certificate is the primary educational qualification in Sri Lanka. Mathematics, among other core subjects being chosen, takes the first place there.
Whilst developing our mind, Mathematics also gives us many benefits, for Mathematics speeds up the mind and teaches us to solve complicated problems.
By using the adequate teaching methods for this subject, which makes us smarter, learning becomes easy and enjoyable.
It is in this backdrop have we introduced the free course of Mathematics at DP Education from Grade 01 to Grade 11 by deploying best teachers available in the island. This is why we conducted revision classes.
Today, the children have gained its results.
Through the programme, the children had the opportunity to study from home during the Covid period and during the crisis period when there was no electricity and schools.
The results being looked at in an analytical perspective, I observed that those who earned “A” passes for Mathematics in G.C.E. Ordinary Levels in 2020 were a 20 per cent portion of the entire pool of students.
But in 2021, the number of students who earned “A” passes has increased up to 29 per cent.
I started DP Education with seeing a dream.
Today, that dream has come a reality.
May we make that dream the future dream of the country.
I convey my sincerest gratitude to the entire generation of children in this country who made this commitment, to the teachers and staff of DP Education, to the dedicated school principals and teachers, and to the parents.
Thank you!
Dhammika Perera
Founder. DP Education
MIAP
Scholarships for Advance Level students through President’s Fund
A scholarship programme utilising funds from the President’s Fund has been initiated under the directives of President Ranil Wickremesinghe for students who have passed the G.C. E. (O/L) examination and are sitting for the GCE (A/L) examination in 2024.
The programme was implemented as per the instructions of President Ranil Wickremesinghe and President’s Secretary Mr. Saman Ekanayake issued a letter dated 30th November 2022 to the Secretary of the Ministry of Education to start inviting applications from eligible students.
Accordingly, to qualify for the scholarship, the monthly income of the applicant’s family should not exceed Rs. 75,000/- and the applicant should be a student studying in a government school or a free private school.
The applicant should have sat for the G.E.C. (O/L) Examination in the year 2021 (2022) for the first time and be qualified to sit for the G.E.C. (A/L) Examination in the year 2024.
The number of scholarships per educational zone is 30, and the selected scholarship winners will receive Rs. 5,000.00 each and the bursary will be awarded for a maximum period of 24 months.
The Ministry of Education has already forwarded the related applications to the principals. Scholarship candidates should get the relevant applications from the Principal complete them and submit them to the Principal prior to the 23rd of December 2022 with the relevant recommendation of the Grama Niladhari Officer regarding the income status of the family.
The principals should then forward these applications to the Regional Director of Education.
A committee chaired by the Regional Director of Education would select the applications forwarded by the Principals to the Regional Education Offices. The top 30 candidates would be selected and a copy of the applicant’s National Identity Card, bank account details and other relevant details should be completed by the Regional Director of Education and sent to the Ministry of Education before the 3rd of February 2023 through the Provincial Director of Education.
Late applications sent after the deadline will be rejected.
The relevant newspaper advertisement has been published by the President’s Fund on the 05th of December 2022, in the national newspapers “Dinamina” and “Thinakaran”. The relevant application and instructions could be obtained through the website of the President’s Fund at www.presidentsfund.gov.lk.
AG vows security will be provided for ex CID Chief Shani Abeysekara
The Attorney General today (05) has pledged before the Court of Appeal that security officers will be deployed for the protection of former Director of the Criminal Investigation Department (CID), Shani Abeysekara.
The pledge was made as the petition filed by Abeysekara demanding that an order be made assuring security over the threats posed to him was taken up today.
Additional Solicitor General Rohantha Abeysuriya appearing for the Attorney General stated that two armed Police officers will be deployed for the safety of Mr. Abeysekara, in addition to another Police officer deployed for the safety of his residence.
Should Mr. Abeysekara decide to change his location of residence, arrangements can be made to provide him a safe place, the Additional Solicitor added.
MIAP
Paris Club creditors propose a 10-year moratorium on Sri Lankan debt
The Paris Club creditor nations are proposing a 10-year moratorium on Sri Lankan debt and another 15 years of debt restructuring as a formula to resolve the current financial crisis in the Island nation.
The Paris Club has said that it is ready to start the debt treatment process of Sri Lanka following the conclusion of the Staff-Level Agreement with the International Monetary Fund (IMF), Hindustan Times reported.
The Paris Club in a statement also reiterated its willingness to coordinate with non-Paris Club official bilateral creditors to provide the necessary financing assurances in a timely manner and ensure fair burden sharing, as already proposed to the largest other official bilateral creditors.
“The Paris Club remains at the disposal of Sri Lanka authorities and non-Paris official bilateral creditors to further discuss the next steps of the debt treatment process,” it said.
The statement said Paris Club members welcome the SLA between the Sri Lankan Government and the IMF for a 48-month arrangement under the Extended Fund Facility worth $ 2.9 billion.
“This agreement represents an important step to restore macroeconomic stability and public debt sustainability,” the statement added.
While the Paris Club is still to formally reach out to India and China, two of Sri Lanka’s biggest creditors with Beijing holding near 50 per of external debt.
Sri Lanka government on its part is still to initiate a formal dialogue with China and India ,the chances of getting extended fund facility of USD 2.9 billion approved from IMF executive board this month range from very low to non-existent.
This means that Sri Lanka will have to wait for the March IMF meeting of the IMF before any aid is extended by the Bretton Woods institution.
While Sri Lanka owes some US4 800 million in structured debt to India, the Modi government has provided emergency aid to the tune of USD four billion to the Island nation to tide over its economic crisis.
China, Chinese Exim, and China Development Bank hold billions of US dollar debt with Sri Lanka with the total external debt of the Island nation touching nearly US$ 40 billion.
The Sri Lanka Government public debt has gone up from 115.3 per of the GDP in end-2021 to 143.7 per cent of the GDP in end June 2022. During 2022, the debt has increased further due to foreign exchange depreciation, deep recession and fiscal deficit with no signs of early revival.
LNG power project deal with the New Fortress Energy comes to the fore
The controversial US $ 250 million Sri Lanka LNG power project deal with the US energy company the New Fortress Energy Inc.(NFE) has come in to the focus once again following the government’s urgency to review the project.
The possibility of resume the LNG project under the much delayed deal with NFE was discussed at a special meeting held under the patronage of President Ranil Wickremesinghe and Treasury Secretary Mahinda Siriwardana recently official sources said.
NFE and The Government of Sri Lanka executed a definitive agreement in September 2021 whereby NFE will invest in energy infrastructure in Sri Lanka and develop a new LNG Terminal off the coast of Colombo.
NFE said will have gas supply rights to the Kerawalapitya Power Complex and will initially provide GOSL an estimated 1.2 million gallons per day of LNG (~ 35,000 MMBtu) to supply both the currently operational 310 MW Yugadanavi Power Plant and an additional 350 MW (the Sobadanavi Power Plant) which is expected to commence operations in 2023.
The definitive agreement is subject to customary conditions, the statement said. “We are pleased that the Court has dismissed these petitions, as NFE can now proceed with our plans to deliver cleaner fuels and more reliable, affordable power to Sri Lanka,” said Wes Edens, Chairman and CEO of New Fortress Energy.
New Fortress Energy Inc. is a global energy infrastructure company founded to help accelerate the world’s transition to clean energy.
The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities
In September 2021, the Cabinet approved the share transfer of 300 MW of the Yugadanavi Power Plant to NFE. Accordingly, the Finance Ministry has agreed to transfer a total of 40% shares of the power plant owned by the Treasury to NFE together with the rights to supply natural gas to Sri Lanka.
In May, it was revealed that the information on the minimum required LNG had been sought from the Ceylon Electricity Board (CEB) to support the now defunct NFE committee to conclude the negotiations of the proposed Gas Supply Agreement and amendments to the existing project agreements of West Coast Power Ltd. with the CEB.
The information had been sought in a backdrop where the Government had officially announced its Renewable Energy (RE) target of 70% by 2030.
It was further revealed that the Government was trying to reach a ‘take or pay’ agreement with the US company by deciding the minimum required LNG in the next 10 years.
According to a senior treasury official the two committees appointed to evaluate the proposals were working on it and that there were several agreements to be finalized with the CEB.
However, no response had been received from those committees, he said, adding that it was the Department of Public Enterprises that was handling the matter.