1. Air France and Royal Dutch Airlines to resume 4 flights to Sri Lanka from 4th November: previously, Russia’s Aeroflot also resumed flights to Sri Lanka after halting flights due to the Covid-19 pandemic.
   
2. Central Bank “prints” another Rs.29 bn last week to bring the total T-Bills issued during Gov. Weerasinghe’s 196-day tenor so far to a staggering Rs.683 bn, at an average of Rs.3.5 bn per day: in comparison, during Gov. Cabraal’s tenure, the average was Rs.2.2 bn per day: increase – 59%.
   
3. Chancellor of Ruhuna University Ven Akuratiye Nanda Thera says President Wickremesinghe has set an example to the world by the 22nd Amendment which relinquishes dictatorial powers of the Executive Presidency and empowers Parliament.
   
4. Tissamaharama Rice Producers Association Chairman W H Gamini says the rice mills have decided to stop buying paddy because of the additional 2.5% social security tax: warn that, as a result, around 75% of small and medium scale rice mills will close.
   
5. Fitch Ratings warns forex reserves are currently insufficient to cover even 1 month of imports: says shortage will not ease in the next 12-18 months: Forex reserves were USD 1,917 at end March 22, but has dropped to USD 1,777 at end September, even after defaulting on debt, rationing fuel and stopping “on-account” payments.
   
6. Presidential Debt Advisor Dr Shantha Devarajan says the government must not treat tax policies as a “complicated” matter: says people should be consulted about taxes: previously, he recommended Sri Lanka’s debt default and said it will be a “soft” default if announced earlier.
   
7. Professor of Geology at the Peradeniya University Atula Senaratne says the 5-km long bund of the “Yoda Wewa” in Mannar has a number of cracks, some of which were as wide as 3 inches.
   
8. Expert in Maritime Law Dr. Malika Gunasekera says Sri Lankan authorities should claim further pollution damages from the MV X-Press Pearl disaster: also says DG of Merchant Shipping should obtain a bank guarantee for the full claim before the wreck is released to the salvage company.
   
9. College of Oncologists say 4,447 breast cancer cases were identified in 2019: approximately 12 cases and 2 deaths per day, on average.
   
10. Colombo Stock Market investors skeptical over prospects, last week: ASPI declines 408 points (4.49%): daily turnover drops to an average of Rs.1,620 mn from Rs.2,564 mn the previous week.

The Embassy of Sri Lanka in Belgium conducted an event on 18 October 2022 to celebrate the Protected Geographical Indication (PGI) status granted to Ceylon Cinnamon specifically for Ceylon Cinnamon quills, Ceylon Cinnamon powder, Ceylon Cinnamon leaf oil, and Ceylon Cinnamon bark oil by the European Union (EU) in February 2022, and to promote Ceylon Cinnamon in Belgium. The event was attended by officials of the European Commission’s Directorates-General, the European External Action Service (EEAS), and the Belgian government, as well as representatives of business entities that are engaged in importing or using cinnamon in their various products in Belgium and media agencies.

Director, International Affairs of the Directorate General for Agriculture and Rural Development (DG AGRI) of the European Commission, John Clarke, who handles the PGI status for products, attended as a special guest. The objective of the event was to create awareness of the Ceylon Cinnamon with PGI status, which has been recognized as true cinnamon of high quality in the world cinnamon market. The European region largely uses Cinnamon Cassia, which is a cheaper substitute for Ceylon Cinnamon.

Ambassador Grace Asirwatham provided an introduction to the PGI status for Ceylon Cinnamon and the benefits that it presents to the producers, exporters, importers, and consumers in the EU region. The Ambassador said that Ceylon Cinnamon was a legacy and pride of Sri Lanka and added that while promoting Ceylon Cinnamon, Sri Lanka would like to share the inspiring story of Ceylon Cinnamon with the world. Further, the Ambassador said that Sri Lanka, being the true home of Ceylon Cinnamon, which holds 80% of the world market for Ceylon cinnamon, was confident that it would use the PGI status to penetrate into niche market segments in the EU and international markets.

 The highlight of the Ambassador’s presentation was the detailed explanation of the differences between Ceylon Cinnamon and Cinnamon Cassia, stressing Ceylon Cinnamon’s high quality, distinctive production process, unique flavor and aroma, slender-thickness of cinnamon quills, delicate taste and properties that contribute to many health benefits, and the important characteristic of the ultra-low level of coumarin, which makes it a healthier choice for consumers. In his address to the gathering, Director John Clarke congratulated Sri Lanka and appreciated the efforts being made to make maximum use of PGI status to increase exports of Ceylon Cinnamon to the EU region.

During the business promotional event, profiles of thirteen (13) Sri Lankan companies were shared and their product samples were displayed for promotion among the potential importers and distributors in Belgium. The Sri Lankan companies  associated with the event as coordinated by the Sri Lanka Export Development Board (EDB) and the Ceylon Chamber of Commerce include Verger Naturals (Pvt) Ltd., Elpitiya Plantations Plc, Lak Cinnamon Planters & Exporters Group (Pvt) Ltd., A. Baur & Company (Pvt) Ltd., Samagi Organics (Pvt) Ltd., Diamond International Lanka (Pvt) Ltd., Sanjeewaka Ayurvedic Products (Pvt) Ltd., Hddes Extracts (Pvt) Ltd., New Lanka Cinnamon (Pvt) Ltd., Silvermill, Ceyla Organics (Pvt) Ltd., Cinnamon One (Pvt) Ltd,  and Enrich Tea & Food Exports (Pvt) Ltd.

Sri Lanka exports around 18,000MT of Ceylon Cinnamon to the world market, of which 45% is imported by South American countries and 14% by the US. The European region imports as little as 10% of Ceylon Cinnamon as it has been accustomed to using Cinnamon Cassia. The EU PGI status for Ceylon Cinnamon is a significant tool to differentiate Ceylon Cinnamon in the EU market from its substitutes of lower quality. It will act as a source of competitive advantage, which will help to increase market differentiation and product turnover and allow for a premium price from the consumer. A coordinated and intense action plan is needed to promote EU PGI quality-certified Ceylon Cinnamon in all EU countries in order to develop a competitive position and enhance Ceylon Cinnamon’s market share in the European market.

Embassy of Sri Lanka

Brussels

21 October, 2022

At a formal ceremony held on 19 October 2022 at the Mexican Cultural Centre in Washington D.C., Ambassador Mahinda Samarasinghe presented copies of his credentials to the Ambassador of Mexico to the US Esteban Moctezuma, as the Ambassador of Sri Lanka to Mexico with residence in Washington D.C.

 At the meeting held after the presentation, Ambassador Samarasinghe conveyed his strong determination to work hard and reinvigorate the relations between the two countries to a greater height for mutual benefit. He mentioned that currently, Mexico is the 15th export destination for Sri Lankan products with a favorable trade balance towards Sri Lanka, and  in the future a greater focus will be given to further expanding the investment and trading opportunities between the two countries.

Explaining the ongoing financial constraints and related developments in Sri Lanka, Ambassador Samarasinghe emphasized the GoSL’s commitment to overcoming the current challenges with the support of its trusted bilateral and international partners, including Mexico. Furthermore, given that Mexico is a member of the UN Human Rights Council, the Ambassador briefed his counterpart on recent developments relevant to the promotion and protection of human rights and steps taken toward reconciliation in Sri Lanka.    

Ambassador Moctezuma stated that a formal occasion to present credentials by Ambassador Samarasinghe to the President of Mexico will be arranged soon, and in the meantime, from today onwards, Ambassador Samarasinghe will be able to freely operate in executing his duties as the Ambassador of Sri Lanka to Mexico. He stated that Mexico, with a robust supply chain, maintains a strong economic partnership with the US and several key economies in the region and requested Sri Lanka to take advantage of Mexico’s bilateral and multilateral trading platforms to expand its presence in the region.

Senior Diplomatic staff attached to the Embassy of Sri Lanka and Mexico in Washington DC were also present at the occasion.

Embassy of Sri Lanka

Washington D.C.

21 October, 2022

The National Consumer Price Index for the month of September 2022 has been released by the Census and Statistics Department yesterday (21).

Accordingly, the headline inflation for the month of September 2022 is 73.7%. Last August this figure was recorded as 70.2%.

In September 2022, the point inflation in the food category was 85.8 %. This figure was 84.6% in August.

Point inflation in the non-food category rose to 62.8% in September 2022 and 57.1% in August 2022.

The Secretary General of the Parliament says that Sri Lanka Podujana Peramuna Member of Parliament Sarath Weerasekera has voted against the 22nd Amendment to the Constitution in the third reading.

After the third reading vote held yesterday (21) evening, the speaker announced the result as 174 votes in favor of the bill, 0 votes against and one member who did not vote.

According to the new statement of the Parliamentary Secretary General, the result changes to 174 votes in favor of the bill and one against it.

1. 22nd Amendment to the Constitution passed in Parliament by a majority of 173 votes; 174 voted for: only MP Sarath Weerasekara votes against.
2. Russian Government contradicts Sri Lankan Ambassador in Russia: says it will not offer a “G2G” line of credit for Sri Lanka to import fuel and coal, but will facilitate a commercial line of credit: conveys
   displeasure over Sri Lanka’s refusal to accept MIR payment system.
3. Cabinet approves compensation payment of Rs.10 mn to the family of late SLPP MP Amarakeerthi Athukorale who was killed by an “Aragalaya” mob on 9th May.
4. State Minister for Finance Shehan Semasinghe admits IMF officials have asked Sri Lanka to complete “prior actions” under a staff level agreement early: explains that a key requirement is to obtain assurance of debt restructuring from bilateral lenders, including China and India.
5. Former CB Governor Ajith Nivard Cabraal says it’s now 7 months since seeking IMF help, but not a Dollar received yet from IMF or other bi-lateral lender: emphasizes USD 4 bn was raised in the 6-1/2 months he was Governor: reiterates every maturing debt was settled by the Government, when he was Governor.
6. Sri Lankan Rupee on a gradual depreciation path once again, although the Monetary Board had “fixed” it within a set range on 12th May: selling rate for USD on 30th September – 369.91: on 21st October – 371.24: depreciation of Rs.1.33.
7. Inflation, measured by the National Consumer Price Index jumps to an all-time Year-on-Year high of 73.7% in September: Food Inflation 85.8%.
8. ASPI slips 0.59% to close at 8,685 points: loses 12.5% so far this month: also loses 28.9% year-to-date: last year, CSE was one of the world’s best stock markets with a 80% return.
9. Aviation Minister Nimal Siripala Silva says Sri Lanka plans to continue construction work on the Katunayake Airport expansion project with USD 2.5 mn from Airport and Aviation Services: JICA funding for the project had stopped due to the April 12th debt default.
10. Public Security Minister Tiran Alles seeks Cabinet approval to promote 8,312 policemen and 1,105 policewomen including sergeants and constables who have completed their service periods.

Supun S. Pathirage has been appointed as the new chairman of the Central Environment Authority.

This appointment has been made by President Ranil Wickramasinghe.