China’s Sinopec has offered to fully finance the construction of a refinery in Hambantota, the President’s Media Division said.
During a discussion with representatives of the Sinopec Group held at the Presidential Secretariat recently President Ranil Wickremesinghe said that the Government has taken a principled decision to expand the distribution of fuel which is expected to commence shortly.
The representatives from the Sinopec Group confirmed their readiness to invest in the import, storage, distribution, and marketing of fuel to cater to Sri Lanka’s energy requirements.
The representatives informed the Sri Lankan Government that their organization has adhered to the existing system and has applied accordingly. They further conveyed their readiness to fully finance the construction of a refinery in Hambantota, which has been identified as a central energy hub by the Government.
Moreover, the representatives stated that their company is prepared to respond to future solicitations that align with the aspirations of the country.
They also presented their proposal to the President who spoke about the import, storage and distribution of petroleum products.
Expressing his views, President Ranil Wickremesinghe further stated that Sri Lanka expects rapid development following the program with the International Monetary Fund.
President Wickremesinghe also expressed his desire to promote and attract foreign businesses to operate within the country in the future.
Sri Lanka’s Hambantota International Port where China’s Sinopec is already selling very low sulfur fuel oil wholesale, will soon offer marine gas oil, strengthening its position as a marine fuels supply point, a statement said.
“In order to further develop HIP as a competitive marine bunker supply location, we entered into a strategic partnership with Sinopec Fuel Oil Lanka Limited (SFOL) to provide bunkering services as a wholesale exporter and also service vessels calling HIP as a value added service.
“Sinopec with their vast resources guarantees the supply of VLSFO in Hambantota currently and MGO in the near future, enabling the port to service all vessels plying the principal sea route in the Indian Ocean,” Hambantota International Port Group said.
Sinopec Fuel Oil Lanka Limited (SFOL) is also supplying wholesale bunkers to other bunkering companies based in Sri Lanka.
China’s Sinopec group to build oil refinery in Hambantota
BOI to steps up efforts to enhance Foreign Investment facilitation
The Board of Investment (BOI) is to launch strategic plan soon to secure significantly higher levels of quality and sustainable foreign direct investment (FDI) for Sri Lanka, which would contribute substantially to the Government’s economic development agenda by creating employment opportunities, increasing export revenue and developing infrastructure.
Investment facilitation has been identified as a core stimulator under the overall investment policy, with a view to ensuring an efficient, transparent and predictable business climate, top BOI official said.
In order to streamline the foreign investment project approval process, the BOI has adopted several measures to enhance Investment facilitation including the “Investor Facilitation Centre”, which ecompasses digitalisation of the organisation to handle customs functions more effectively
Investment Promotion State Minister Dilum Amunugama has stepped up efforts to address the concerns of the investors who are seeking approval for investment projects.
This was observed at the conclusion of the second round of the Investor Facilitation Coordinating Committee Meeting chaired by Investment Promotion State Minister Amunugama recently at the Investor Facilitation Centre (IFC).
During the meeting, the issues faced by four BOI companies operating in diverse sectors such as manufacturing (circuit manufacturing) and seafood processing, were tabled and taken into consideration.
State Minister Amunugama directed the officials of pertinent line agencies to expedite the actions to swiftly resolve the pending issues of the investors.
“Meetings of this nature are opportune, which can enhance collaboration and synergy with investors, thereby boosting their confidence to explore new avenues of investment opportunities in Sri Lanka,” he added.
Meanwhile, the investors pointed out the significance of conducting review meetings of this nature to appraise stakeholder projects that are being implemented and to address concerns of the investors.
Speaking at the meeting, BOI Director-General Renuka M. Weerakone appreciated the presence of the officials of line agencies and their efforts to facilitate the investors in doing business in Sri Lanka.
“The very reason behind the idea to establish the IFC is to fast-track approvals with respect to investment projects and offer investors a one-stop shop service while imparting greater transparency in the FDI proposals and removing administrative impediments.
As such, the BOI as the catalyst and facilitator has made a giant leap forward in investor facilitation by setting up the IFC,” Weerakone stated.
These facilitation meetings are regularly conducted to get definite timelines for resolving queries related to investment projects under the chairmanship of the Investment Promotion State Minister and with the attendance of BOI officials, relevant ministry and line agency officials, concerned investors, and other stakeholders.
The first Investor Facilitation Coordinating Committee Meeting was held in January with the participation of relevant officials.
Govt appoints Special Team to probe SL airspace accidents for the first time
Minister of Ports, Shipping and Aviation Nimal Siripala de Silva has appointed a team to investigate air accidents in Sri Lanka’s airspace for the first time.
Accordingly, letters of appointment were given today to the first batch of Air Accidents Investigators and thereby, seven Air Accident Investigators received letters of appointment from the Minister.
This is the first time in history Sri Lankan aviation services sector Air Accident Investigators were appointed to identify accurate information, investigate the true cause of air crashes and take necessary action to prevent any future disasters in Sri Lanka’s airspace.
The Minister said that the regulatory role of the global aviation sector is performed by the International Civil Aviation Organization (ICAO) and the regulatory activities of the Sri Lankan aviation sector should follow the ICAO standards.
“For so long, there was no institution or proper program to accurately conduct investigations of accidents involving aircraft had taken place in the domestic airspace,” the Minister said.
He said after an in depth study into the matter, steps have been taken by the Civil Aviation Authority of Sri Lanka to form an independent pool of Air Accident Investigators is a giant leap forward for the elevation of the Sri Lankan aviation sector.
Letters of appointments were awarded today (16th March 2023) to the first batch of Air Accident Investigators who would take over to investigate air accidents in the Sri Lankan airspace. The function took place with the initiative of. Minister of Ports, Shipping and Aviation Nimal Siripala De Silva, at the Ministry Auditorium
This is the first time in the history Sri Lankan aviation services sector, Air Accident Investigators were appointed to identify accurate information, investigate to the true cause of air accidents and take necessary actions to prevent any future disasters in the Sri Lankan airspace.
“Therefore, immediate steps will be taken to amend the Aviation Act to establish the Aviation Accident Investigation Bureau for these activities without delay,” the Minister said.
Training for Air Accident Investigators is conducted by the Civil Aviation Authority of Sri Lanka adhered to the standards stipulated by the International Civil Aviation Organization (ICAO). The team will be operated as an independent body under the purview of the Ministry of Ports, Shipping and Aviation.
The Ministry of Ports, Shipping and Aviation emphasizes that the team operated under the Ministry at present, will be established as an Accident Investigation Bureau in future.
IFC local head contradicts CB heads view on US$ 400 million SWAP
The US$ 400 million cross-currency SWAP” for four Sri Lanka banks extended by the International Finance Corporation (IFC) of the World Bank is only to trade cash flows in one currency with that of another IFC’s Country Manager for Sri Lanka, Alejandro Alvarez de la Campa disclosed.
He has confirmed that there’s no new Forex inflow due to the SWAP as predicted by some economic experts and state officials.
Under the facility, IFC will provide up to $400 million over one year to Commercial Bank of Ceylon (CBC), Nations Trust Bank (NTB) and Sampath Bank to help facilitate the imports of essential goods.
It has no impact on Sri Lanka Forex market or foreign reseves of the the Central Banka he pointed out.
Buit addressing the ceremony to mark the signing of IFC’s cross currency swap, the Central Bank Governor Nandalal Weerasinghe said that while the forex market had dried up at the time, the situation is now steadily improving.
“I think it’s a good time that IFC has come on board and support this facility that will provide a lot more confidence to the forex market, in addition to the progress that we have made so far,” he said.And it would he said instill more confidence into the domestic market.
Several economic experts said that Cb governor uttering nonsense as the rupee has been defended from both appreciation and depreciation via central bank’s moral suasion, which has compelled the market to trade forwards.
The rupee forwards have also been capped by the central bank from time to time, dealers have said.
These include food items, medicines and fertilizers – most of which are traded in US dollars. The facility will further support the banks financing of exports of goods and services for their clients while allowing them to make USD-denominated debt repayments.
However country head of IFC noted that IFC first conceived of using this innovative approach last year – at a time when Sri Lanka was cut off from international financial markets due to high debt, and when it was brought home to all that foreign currency was vital to help the country import the goods it needed.
The move comes as Sri Lanka continues talks with the International Monetary Fund and other countries over Sri Lanka’s debt.
The country of 22 million people has been facing its worst economic crisis in seven decades, with Sri Lanka suspending payment on most foreign debt since April last year. Simply put, the government ran out of the foreign exchange needed to cover food and fuel imports and to service its external debt.
He said supporting the private sector with critical financing will contribute to the country’s urgent need to stabilize its economy.
“It is not just about supporting businesses and helping facilitate the imports of essential goods. It’s also about the signal this sends to the market. It should send a strong message to the investor community, and hopefully spur more capital inflows – all of which would be critical for a resilient recovery of the economy,” he pointed out.
For Joon Park, IFC’s Portfolio Manager, Financial Institutions Group South Asia, delivering on the facility “wasn’t a smooth ride as it took longer than expected due to the ratings downgrade of the sovereign and the corporates.”
“But here we are today. And with this official signing, we expect this financing to enhance confidence within the investor community, attract fresh capital inflows and support a broad range of needs of families and businesses,” he said.
“Through trade lines, we also plan to support essential goods imports, and further assist our client banks with other long-term funding and advisory services in the future.”
A new chairman appointed for the National Youth Service Council
Pasindu Gunaratne has been appointed as the new chairman of the National Youth Service Council (NYSC).
The Minister of Youth and Sports Mr. Roshan Ranasinghe stated that this appointment was made by expressing strong confidence in Pasidu Gunaratne’s leadership abilities and commitment to empowering the youth.
Pasindu Gunaratne, a 25-year-old civil engineer, is currently pursuing a bachelor’s degree at Sabaragamuwa University in Sri Lanka. An alumnus of the Royal College of Colombo, Gunaratne has been recognized for his commitment to community service and youth development. He is currently the President of the Colombo 07 Lions Club where he has made a significant impact on the lives of the community.
Youth and Sports Minister Roshan Ranasinghe says Pasindu Gunaratne as the new chairman of the NYSC will lead the mission to create an environment that empowers and supports the youth of Sri Lanka and creates opportunities.
The Minister claims that his leadership will be the decisive factor in the implementation of innovative projects and initiatives that will lead them to a successful future by nurturing their abilities at a time when the country needs the thought and labor contribution of the youth, especially during the economic crisis and socio-political renaissance.
Sri Lanka Original Narrative Summary: 18/03
- CB Governor Nandalal Weerasinghe says the LKR could soar past Rs.1,000 per USD if the debt is not properly managed: LKR depreciates by Rs.3.89 (1.1%) from 346.33 to 350.22 against the USD: some banks quote 355.00 per USD: LKR said to be trading in “grey market” at over 380.00 per USD.
- President Ranil Wickremesinghe, a distinguished old boy of Royal College watches the 2nd day of the 144th Battle of the Blues cricket match between Royal College and S. Thomas’ College: Royal College Principal R M M Rathnayake also joins him.
- India’s Foreign Minister Dr S Jaishankar inaugurates world renowned Architect Geoffrey Bawa’s exhibition at the National Gallery of Modern Art in New Delhi: says “when I think of Sri Lanka, the names, images, associations, Geoffrey Bawa is a figure that very naturally comes to mind”.
- CB Governor Nandalal Weerasinghe says “some USD 400 mn is expected as the 1st tranche of the IMF bailout, which is due on 20Mar’23”: also says with that, exporters will receive foreign exchange on a priority basis.
- CB data shows 1,127,758 Sri Lankans have left the country in 2022 with a monthly average of about 94,000 while only 27.6% of total departures have left for foreign employment purposes: 911,757 passports issued during the year.
- Analysts express alarm over the staggering Rs.121 bn that was “printed” by the Central Bank on 15 Mar 23, even though the Govt and CB has said no money is now being printed after the IMF Staff Level Agreement was reached in end Sept’22.
- Justice Minister Wijeyadasa Rajapakshe says some police officers have falsely arrested persons on drug-related offences: alleges the substances they have recovered from the suspects have not been narcotic drugs: asserts “genuine arrests have been less than 1%”.
- State Minister Shehan Semasinghe insists the Govt has no intention of laying off state sector employees, yet: asserts the public are concerned about the efficiency of a few workers in the Govt sector: however, analysts claim if the Govt is to achieve the IMF’s fiscal targets, it will inevitably have to reduce the wage & pension bill.
- Chinese Embassy in Colombo donates dry rations worth Rs.100 mn to 15,000 families, in line with the upcoming Ramadan and Sinhala & Tamil New Year: provisions distributed to needy families via temples, kovils and mosques.
- Govt decides to decommission the Batticaloa International Airport in the Eastern Province as it is not up to international standards, costs approximately Rs.15 mn a month to maintain, and does not earn any significant revenue: the airport was opened on 25 Mar’18.
President to form a committee to recommend suitable government hospitals for clinical training for medical students
A committee will be formed by President Ranil Wickremesinghe to identify suitable government hospitals as teaching hospitals to provide clinical training for Medical Students enrolled at the General Sir John Kotelawala Defence University (KDU), Dr. Neville Fernando Hospital, Lyceum Campus and other universities in Colombo, Kalutara, Gampaha, Kurunegala and Polonnaruwa, without hampering the training of students in State Universities.
Accordingly, State Minister of Health Dr. Seetha Arambepola will be appointed as the Chairperson of the aforementioned Committee, while other appointed members will include Additional Secretary to the Ministry of Health Dr. R.M. Saman Kusumsiri Ratnayake, Additional Secretary (Medical Services) of the Ministry of Health Dr. A.K.S. de Alwis, Chairman – University Grant Commission Senior Prof. Sampath Amarathunga, Senior Consultant Surgeon Prof. Mohan de Silva, Professor in Surgery, Faculty of Medicine USJP Prof. Bawantha Gamage, Senior Consultant Orthopaedics & Trauma Surgeon Dr. Narendra Pinto, Dean -, Faculty of Medicine – KDU Prof. Namal Wijesinghe, President of SLMC Prof. Vajira Dissanayake, President of GMOA Dr. Darshana Sirisena, Executive Director -, University Hospital KDU Prof. J. Balawardane and Director Nursing (Medical Service) – Ministry of Health Mrs. R.L.S. Samanmali.
The Committee will be responsible for studying, reviewing and identifying suitable government hospitals to function as Teaching Hospitals to provide clinical training for Medical Students enrolled at the KDU, Dr. Neville Fernando Hospital, Lyceum Campus and other universities in Colombo, Kalutara, Gampaha, Kurunegala and Polonnaruwa. The Committee is also expected to make recommendations for the necessary developments to upgrade the hospitals identified for the provision of such training and submit a report on the findings and recommendations of the Committee within a period of eight (08) weeks.
Controversy Arises Over Service Extension of C.D Wickramaratne and Appointment of New IGP
A letter sent by the Inspector General of Police C.D. Wickramaratne to the Secretary of the Ministry of Public Security with a copy to the National Police Commission is currently circulating in some media and social media.
In the same letter, along with the initial investigation report conducted by the Police Special Investigation Unit regarding the amount of rupees one crore seventy eight lakh fifty thousand rupees found there when the militants took over the President’s House at Colombo Fort during the last People’s protest, the charge sheets against a group of officers including Senior Deputy Inspector General of Police Deshbandu Tennakoon.
There are two dramatic issues related to this circulating article.
The first of which is that this letter is circulating in the media and social media, but this has not yet been received by the Secretary of the Ministry of Public Security to whom it refers. Accordingly, it is clear that the Inspector General of Police CD Wickramaratne has forwarded this to the media even before going to the duty reference due to some urgency. This is not another emergency, it is the news from the day before yesterday (16) that he will not get the extension of service he was hoping for and that Senior DIG Deshbandu Tennakoon will be appointed to the position of IGP.
LNW reported in an earlier news that C.D. Wickramaratne, hoping for an extension of service for another year, sent requests after requests to the political authorities asking them to allow him to serve as the Inspector General of Police next year as all the three seniors below him have been charged with various charges. But that hope of Wickramaratne has been completely broken by yesterday (17).
We have already reported that no approval has been received for giving him a service extension and President Ranil Wickramasinghe has also approved the appointment of Deshabandu Thennakone as the Inspector General of Police.
Under such a situation, Inspector General of Police CD Wickramaratne has requested an extension to stay for one more month in the office of the Inspector General of Police, which he is currently using even after his retirement date. It is also stated that he has requested to use a jeep and a car belonging to the police department which he is currently using for another 6 months. It was also reported that the Inspector General of Police had released his letter to the media when the Ministry of Public Security had given approval to those requests considering his security issues.
C.D. Wickramaratne became the Acting Inspector General of Police earlier because the then Inspector General of Police Pujith Jayasundara went on compulsory leave after the Easter attack. After the end of the tenure of Pujith Jayasundara, Wickramaratne assumed the position of Inspector General of Police without the acting part from November 27, 2020. In fact, he has also received a bonus period for the post of Inspector General of Police.
But when he turned 60, instead of giving the position to the next deserving person and leaving in a dignified way, he requested the authorities to allow him to spend the next year as the Inspector General of Police, saying that there were various investigations against all the three senior officers after him. The media had also reported that he went after various bosses including former authorities to make this request.
When all that failed, IGP Wickramaratne filed a charge sheet against the officer recommended for the position of IGP after him and sent it to the ministry secretary on the day his retirement and related privileges were approved. Also sending photos of the letter to a group of media friends before sending it to the Ministry Secretary.
The second story here is that if an investigation is required against Deshbandu Tennakoon, he replied to a letter received on February 09 on March 17, when his retirement was approved yesterday. It has also been sent to the media in advance.
The post of Inspector General of Police is not an easy pass. Only 35 people have received it so far. A person must have the necessary discipline to hold such a position as well as to leave it. But even after CD Wickramaratne’s age, it seems that there is an insatiable desire to hold this position.
Parliament of Sri Lanka launches a Parliamentary Internship Program
arliament of Sri Lanka with the support of National Democratic Institute (NDI) and USAID launched a parliamentary internship program, providing young professionals and students with practical experience in policy development and public service.
The program was launched on March 1 in Parliament under the patronage of Speaker Hon. Mahinda Yapa Abeywardena, and Secretary General of Parliament Mr. Dhammika Dasanayake, Chief of Staff and Deputy Secretary General Mrs. Kushani Rohanadeera and Assistant Secretary General Mr. Tikiri Jayathilaka, Senior Resident Country Director of the National Democratic Institute (NDI) Mrs. Thusitha Pilapitiya and a group of officials were present. The Hon. Speaker delivered the keynote speech at the inauguration.
Following outreach efforts to all the national universities in Sri Lanka, a group of interns was carefully chosen from the eight universities who responded. Accordingly, eight state Universities, namely, Colombo, Sri Jayawardenapura, Kelaniya, Peradeniya, Rajarata, Jaffna, Ruhuna, and Sabaragamuwa have collaborated for the internship program with a group of selected 35 interns.
The program’s selection criteria and structure ensure a comprehensive and tailored experience, with the curriculum designed to develop skills and knowledge for different career paths. NDI, in collaboration with the parliament, conducted a three-day residential orientation program aimed at providing a deeper insight into the intern role. The program featured several sessions covering legislative development, engaging with Parliament, and various modes of interaction with Parliament. The heads of departments and sections of the Parliament conducted the program. The program concluded with a recap and evaluation session by students, followed by an open discussion where interns had the opportunity to raise questions.
Following a three-day orientation program, the interns have been allocated to their respective departments, and throughout their internship period, they will receive hands-on working experience with the Parliament of Sri Lanka.
The program’s curriculum promotes inclusivity, diversity, and skill development for different career paths. The initiative aims to create goodwill ambassadors for parliament, address the trust deficit between parliament and youth, promote democracy, and educate young people about Parliament of Sri Lanka. The program highlights the Parliament’s commitment to the Open Parliament Initiative and aims to address the trust deficit between Parliament and youth while safeguarding democracy.
SL tea industry gains momentum with exports up and drop in volume
The tea industry ganis momentum in this year with mixed results in February which saw lower export volumes, but with marginal increase returns, brokers said.
Sri Lanka’s tea exports in February have enjoyed a massive rise in FOB Rupee value from a year ago due to depreciation whilst volume has been lower, according to Forbes and Walker Tea Brokers.
Tea exports in February totalled 18.55 million kilos, down by 2.59 million kilos from a year ago.
Main categories of Bulk Tea and Packeted Tea have shown a decrease, whilst Tea Bags have recorded a marginal increase when compared to the corresponding month of 2022.
The FOB value of Rs. 2,040.25 per kilo in February was a significant increase of Rs. 1,077.98 per kilo compared to Rs. 962.27 per kilo in February 2022The FOB value of $ 5.61 reflects an increase of 82 cents from a year ago.
The country’s tea exports in January2023 fell by 3.26 million kg to 17.56 million kg compared to 20.82 million Kg a year earlier.
However, the earnings in January increased to $ 99.56 million up from $ 91.93 million in the corresponding period last year.
When analysing the main categories of export Forbes and Walkers said bulk tea, packeted tea and tea bags had shown a decrease compared to the corresponding period a year earlier.
January-February 2023 cumulative exports totalled 36.11 million kilos, down by 4.42 million kilos from the corresponding period of last year.
Main categories of Bulk Tea and Packeted Tea have shown a decrease, whilst Tea Bags have recorded a marginal increase when compared to the corresponding period of 2022.
The FOB value of Rs. 2,047.59 per kilo reflects a significant increase of Rs. 1,092.03 as against Rs. 955.56 achieved during January-February 2022.
Forbes said all main categories FOB values show a positive variance in USD terms, when compared to the corresponding period of 2022.
It said Türkiye has emerged as the No. 1 major importer of Ceylon Tea with an increase of 139% YoY in January-February 2023.
Iraq has secured the second position followed by Russia having decreased its imports YoY by 37% and 25% respectively.
UAE has moved down to the 4th position having decreased imports 11% YoY. Azerbaijan has remained as the 5th and shows a decrease of 28% YoY in imports during January-February 2023. Other notable importers are China, Saudi Arabia, Libya, Jordan and Iran.
Imports from destinations such as Libya and Iran have decreased by a significant 51% and 50% respectively YoY, meanwhile exports to Japan (57%), Lebanon (213%) and Belgium (115%) have shown significant gains.