The Food and Agriculture Organization of the United Nations (FAO), together with the International Fund for Agricultural Development (IFAD) and the United Nations World Food Programme (WFP), marked World Food Day renewing commit on Sri Lanka food security at an event held under the auspices of the Prime Minister. Dinesh Gunawardena.
Through a video message shared at the event, Sri Lankan President. Ranil Wickremesinghe said “Sri Lanka is at a crucial and critical juncture with high levels of food insecurity.
He disclosed the United Nations system, multilateral and bilateral partners, and the donor community for joining hands and building this strong partnership to address the current crisis, “he said.
Delivering the keynote address at the event the Prime Minister, . Dinesh Gunawardena pointed out that with nearly 30 to 35 percent of the population directly or indirectly dependent on agriculture for their livelihood,
Sri Lanka needed to invest deeply in modernizing and developing the agriculture sector, adding that his “government is fully committed to achieving this gigantic task. Agriculture and food security remain a national priority.”
FAO Representative for Sri Lanka and the Maldives, Vimlendra Sharan emphasized the organization’s commitment to helping Sri Lanka build back better during this time.
“FAO is committed to working with the government to ensure that the most vulnerable fishers and farmers, crucial to ensuring food security in Sri Lanka, are protected from the worst impacts of the crisis.
It is providing essential agriculture inputs, such as seeds and fertilizer, through the support of their partners to boost production and help Sri Lanka move towards becoming a food secure nation,” he said.
Sherina Tabassum, IFAD’s Country Director for Sri Lanka and the Maldives, underlined the fundamental role of smallholder farmers in guaranteeing food security for a community and for a country. “
The goal is to ensure that the backbone of our food system – smallholder farmers – are prepared for, and can overcome, the devastating effects of the pandemic, climate change and other external shocks.
IFAD is committed to continue our work with the government to sustainably transform Sri Lanka’s food systems so everyone can benefit.” she added.
Gerard Rebello, Officer in Charge at WFP, Sri Lanka highlighted that urgent action was needed to safeguard the most vulnerable and marginalized communities from the impacts of the crisis.
“WFP has commenced its emergency operation to provide food and nutrition assistance to 3.4 million people. It is also continuing to work with smallholder farmers to make food systems more robust and resilient to climate-induced shocks so that food travels uninterrupted from farm to table, even during times of crises,” he said.
FAO, IFAD and WFP together with the United Nations system in Sri Lanka are on the ground delivering emergency cash assistance, essential fertilizer and livelihood support to the most vulnerable communities in affected districts
FAO, IFAD and WFP renews commitment of strengthening SL food security
IMF works with multilateral lenders on financing programmes for Sri Lanka
The International Monetary Fund is working with other multilateral lenders including the World Bank, and the Asian Development Bank (ADB) on financing programmes for Sri Lanka, the IMF’s Deputy Director for Asia Pacific says.
According to Anne-Marie Gulde-Wolf, policies under other multilateral lenders in their areas of expertise will be important to resolve Sri Lanka’s long-term growth problems.
Meanwhile, the Managing Director of the International Monetary Fund (IMF) has stated that the global financial agency is pressing for a more debt resolution mechanism.
“Sri Lanka’s financing programs would help for closing the financing gap. But she said that the policies under the other multilateral lenders in their areas of expertise will be important to resolve Sri Lanka’s longer term growth problems,” she said.
Responding to a question on a possible downgrade of Sri Lanka, Anne-Marie Gulde said that Sri Lanka is a middle-income country and remains a middle-income country even with the decline in GDP.
Delivering the opening remarks at the press conference for the 2022 Annual Meetings of the IMF and the World Bank Group (WBG), Kristalina Georgieva said, “We want the G20 Common Framework to become more predictable, with clear guidelines and equality of treatment for all creditors, public and private.”
She also remarked that the IMF is also looking for ways to expand that kind of donor coordination to middle-income countries, such as Sri Lanka.
“There is a lot to do this week. We must act urgently, and act together to make a difference in the lives of hundreds of millions of people,” Georgieva said further.
Sri Lanka’s government officials from the finance ministry and the central bank held its first in-person meeting with the country’s largest sovereign overseas bondholders in Washington on Thursday
The gathering on the sideline of the International Monetary Fund and World Bank annual meetings convened amid debt restructuring talks for $13 billion. Some private creditors also joined the meeting virtually, the sources said.
Amundi Asset Management, BlackRock, HBK Capital Management, and T. Rowe Price Associates Inc are among members of the creditor group’s steering committee.
The move comes after the island nation of 22 million fell into default after a 30-day grace period on a $78 million coupon payment expired earlier this year.
The government did not provide any proposal on how a debt restructuring would look, said several top officials who asked not to be named because the talks are private.
“It was a good exchange, but we are still at an early stage,” they said, adding that creditors urged the government to provide information in real time on the country’s debt-sustainability analysis.
Central Bank Governor Nandalal Weerasinghe and Treasury Secretary Mahinda Siriwardena led the meeting from the government side, along with representatives of financial and legal advisers Lazard and Clifford Chance, the sources said.
Sri Lanka, which is struggling with its worst economic crisis in more than seven decades, reached a staff-level agreement with the IMF for a $2.9 billion loan in September, contingent on it receiving financing assurances from official creditors.
Deputy Director, Asia and Pacific Department at the International Monetary Fund, Anne-Marie Gulde, said that the conditions involve securing assurances from bilateral creditors and dealing with the private sector debt.
SL’s tax hike to hit Middle class discouraging small time investors into stocks
Sri Lanka’s proposed tax hikes could force professionals out of the country as they discourage people who want to earn more and expand businesses, analysts say.
It will also hit the country’s middle income earners and the Middle class struggling to survive in skyrocketing inflation.
Sri Lanka’s proposed tax hikes could hit investments into stock markets from small timers as the new levies could wipe out a significant portion of disposable income, analysts say.
“These new tax hikes without considering the current inflation and cost of living will be the final nail in the coffin of the careers of professionals locally. They will look into migrate at any cost,” another analyst said.
The recent tax increases introduced by the government will result in massive social unrest, MP Patali Champika Ranawaka said.
“The lower middle class would fall into lower strata, while the upper middle class would become lower middle class because of tax increases. There will also be massive migration and Sri Lanka will become a human desert.
There will be social unrest at the end of the day.therefore the Central Bank and the Ministry of Finance will have to create a scientific tax regime,” the MP said in a special statement.
“There are no funds to pay salaries for the public servant. October is a difficult month. The Government cannot even think of how to pay salaries in November.the situation will be the same in December.
Government anticipate that it will be able to generate some funds with tax increases. Government is also forced to issue treasury bonds at a high rate of 37 per cent.the incumbent Minister of Finance and Central Bank Governor is following a similar approach just like their predecessors.
Taxes have been increased to sectors which cannot bear it by any means. Therefore, it is wrong to impose taxes without considering the situation of society. One should understand that tax increase could cause destruction,” the MP added.
The MP said the decision to make everyone who earns a monthly salary more than Rs 100,000 pay income tax would adversely affect a majority of both public servants and private sector workers.“This is the real situation though Rs 100,000 seems to be a high figure,” he therefore said.
“The sharp increase in personal income tax rates would discourage employment, negatively affect lives of the middle-class families and specially in an environment of high inflation could increase brain drain,” Danushka Samarasinghe, Chief Executive Officer/Director at Nation Lanka Equities (Pvt) Ltd said.
He said the tax proposals “seem to be more of a knee-jerk measure in boosting government revenues” in the short term though it could have negative medium-long term impact.
“The 30% tax rate could be a disincentive for investment and job-creation. Sectors which enjoyed preferential tax treatment would be disproportionately affected though it could be argued as creating a level playing field.
SL uses Indian credit for solar panels in govt offices, religious places
Sri Lanka will use an extended loan of 100 million US dollar Indian credit line to fix roof top solar panels in government institutes and religious places, Minister of Power and Energy Kanchan Wijesekera said after electricity tariff hikes triggered protests.
Some Buddhist monks threatened not to honour payment for electricity usage and blackout at their temples after the government raised electricity tariff to a record high to reduce heavy losses suffered by the state-run Ceylon Electricity Board (CEB).
The Ministry of Power & Energy later agreed to install rooftop solar panels at select places of worship with the Indian credit line but later be paid for by the connection holder, as a solution to the electricity tariff hike.
“USD 100 Million Credit Line extended by Gov of India for roof top solar will be used to equip schools, universities, education institutes, hospitals, district & divisional secretariat’s, government buildings and religious institutes,” Minister Wijesekera said in his twitter platform.
Sri Lanka’s electricity consumers could set up a rooftop solar unit and recover the cost in four to five years, which is not so expensive compared to the money spent on bathroom tiles, industry officials said.
In Sri Lanka however the Ceylon Electricity Board’s grid is not built to absorb power from consumers but only to distribute. As a result only a few houses get permission to set up grid connected solar systems.
CEB officials say there are plans to upgrade the system to be able to absorb more renewables over the next few years, which may cost up to 4.0 billion US dollars.
When grid connected solar units are set up at the end of a power line stretching from a transformer, customers are not able to export or ‘push out’ power at a safe voltage. Ramping up voltage tends to damage electrical appliances including at neighboring houses.
This technical barrier is generally interpreted as the utility resisting rooftop solar according to CEB officials.
However residents can install an off grid system and save the power in batteries.
An off grid system with batteries could be built for 2.2 to 2.6 million rupees, Fernando said compared to the 1.1 to 1.3 million for a grid connected system.
Sri Lanka’ raise power tariffs from August. High domestic users are charged as much as 75 rupees a unit.
If 20 percent of Sri Lanka’s 6.5 million plus domestic customers moved to rooftop solar, installing 3kW solar systems, about 3000 MegaWatts of capacity could be installed.
Plan for disaster risk reduction and ease outlay for relief: Premitha
- Theme : ‘Early warning and early action for all; and leave no one behind’
- Defence Secretary pledges to strengthen coordination and cooperation between various institutions responsible for early warning
State Minister of Defence Hon Premitha Bandara Tennakoon (Oct 13) disclosing the enormous outlay in response to disaster relief and resettlement stressed that we must look forward and plan for risk reduction.
Delivering a speech as the Chief Guest at the national event organized to commemorate the ‘International Day for Disaster Risk Reduction’ he revealed “the Disaster Management Centre (DMC) had spent over Rs 65 billion between 2016 to 2022 for disaster relief and resettlement for Colombo region alone”, he said, “As a developing country we have achieved a great deal”. “Early warning must trigger an early action that is well prepared and tested”, he added.
The national event organized to commemorate the ‘International Day for Disaster Risk Reduction’ organized by the DMC was held at the Cinnamon Lakeside Hotel, in Colombo today.
Defence Secretary General Kamal Gunaratne also graced the occasion as the Guest of Honour. The Director General (DG) of DMC Maj. Gen. Sudantha Ranasinghe warmly received both the State Minister and the Defence Secretary on their arrival, at the venue.
“Among all other disaster risk management, one productive way to minimize the impact of disasters is enhancing early warnings by establishing a common language for responsible officials and public” he said while adding that “Mainstreaming all local authorities responsible for public administration and public wellbeing into the subject of disaster management with special reference to “Leave no one behind” should be another strategy to be adopted”.
“Therefore, it is essentially required to make “Early warning and early action” an integral part of Disaster Risk Management and Development”, he added.
The Guest of Honour, Gen. Gunaratne also addressing the gathering mentioned that “Amidst today’s fragile economic and social situation of the country, there is no doubt that reducing human, economic and environmental damages and losses from natural disasters remains one of our key collective challenges”.
Gen. Gunaratne also stressed that, early warning is ineffective if it does not lead to early and appropriate intervention.
“To do so, partnerships are essential to the successful implementation of effective early warning and disaster risk reduction” he said adding that “Partnerships should cut across different sectors including practitioners, policy makers, and community members at all levels”.
In the same vein, the Defence Secretary also pledged his fullest commitment, along with the DMC officials, to support the practical steps put-forward to strengthen coordination and cooperation of various institutions responsible for early warning.
Maj. Gen. Ranasinghe delivered the welcome address at the outset of the day’s programme. The DMC led programme saw dialogs and sharing of knowledge by international and local guest speakers on different aspects relevant to the theme “Early warning and early action for all: leave no one behind”. He also thanked the international agencies for their support in organizing this event today.
Prior to end of the event a brief interactive summing up was also conducted by the invited panellists.
A special message by the Special Representative of the Secretary- General for Disaster Risk Reduction and Head of UNDRR Ms. Mami Mizutori was also made over the virtual platform during the session.
Senior state officials, representatives of inter-governmental organisations, United Nations agencies and sponsors, international organisations and stakeholders, professionals and scholars those participating on virtual platforms, senior military and police officers, distinguished invitees, guests and DMC staffers were also present at the event.
SL holds one to one meeting with bondholders as precursor to debt talks
Sri Lanka’s government officials from the finance ministry and the central bank held its first in-person meeting with the country’s largest sovereign overseas bondholders in Washington foreign news agency reports revealed.
The gathering on the sideline of the International Monetary Fund and World Bank annual meetings convened amid debt restructuring talks for $13 billion. Some private creditors also joined the meeting virtually, the sources said.
Amundi Asset Management, BlackRock, HBK Capital Management, and T. Rowe Price Associates Inc are among members of the creditor group’s steering committee.
The move comes after the island nation of 22 million fell into default after a 30-day grace period on a $78 million coupon payment expired earlier this year.
The government did not provide any proposal on how a debt restructuring would look, said two of the people, who asked not to be named because the talks are private.
“It was a good exchange, but we are still at an early stage,” one source said, adding that creditors urged the government to provide information in real time on the country’s debt-sustainability analysis.
Central Bank Governor Nandalal Weerasinghe and Treasury Secretary Mahinda Siriwardena led the meeting from the government side, along with representatives of financial and legal advisers Lazard and Clifford Chance, the sources said.
Sri Lanka, which is struggling with its worst economic crisis in more than seven decades, reached a staff-level agreement with the IMF for a $2.9 billion loan in September, contingent on it receiving financing assurances from official creditors.
Economic mismanagement and the hit from the COVID-19 pandemic have left the country battling its worst financial problems since its independence in 1948, and a lack of foreign exchange reserves has stalled imports of essentials including fuel, food and medicines.
The country also needs to renegotiate debt with bilateral creditors such as China, Japan and India. The Paris Club creditor nations last month reached out to China and India seeking to coordinate closely on Sri Lanka’s debt talks, but is still awaiting a reply.
Roshan Ranasinghe removed from SLPP district leadership
Sports Minister and Ruling Party MP Roshan Ranasinghe has been removed from the Polonnaruwa Sri Lanka Podujana Peramuna (SLPP) district leadership, paving the way for State Minister of Highways Siripala Gamlath to fill the post.
The appointment letter was handed over to Gamlath by MP Namal Rajapaksa and Party Secretary MP Sagara Sagara Kariyawasam at a rally held in Girithale, Polonnaruwa yesterday (15).
MIAP
Operations at Oil Refinery could be further delayed!
The resuming of operations at the Oil Refinery in Sapugaskanda may take more time, said Energy Minister Kanchana Wijesekara speaking to a briefing yesterday (15).
“Even after receiving the crude oil ship outside, it may take a little for us to resume operations at the Refinery. Because there is no point of resuming the operations with one ship without a second. Therefore, we have called in the tenders required for that second ship,” Wijesekara said.
The Minister went on: “Several have come forward for tenders during the last period. Although they did not come forward before, we have given the opportunity to those who came forward. Also, the tenders may be given based on their capacity of paying. When I held a progress review meeting last week, those from the Refinery said that they have a maintenance job at the premises in which crude oil is unloaded, and that it may take about one month for that. This was proposed to be carried out from December to January, but I told them to do it now because the Refinery is closed these days, and finish it within a month. So, this period is being used for that purpose.”
MIAP
Sri Lanka Original Narrative Summary: 16/10
- Deputy Director IMF for Asia Pacific, Anne-Marie Guide-Wolf says the IMF is working with other multilateral lenders on financing programs for Sri Lanka: indicates the country will have to diligently follow their policies.
- IMF says Sri Lanka is a “middle income” country and remains so even with the decline in GDP: stresses that therefore the proposed EF Facility is not “concessional”, but a regular IMF facility.
- Analysts express grave concern over IMF MD’s comment of the need “to bring equality of treatment for all creditors, public and private”: interpret statement to mean that any “haircut” being imposed on forex creditors will need to be imposed on local debt as well.
- Health Minister Keheliya Rambukwella says Sri Lanka will implement a “foster parent” concept to feed extreme malnourished kids: over 20,000 children said to be starving due to economic hardships: an estimated 6.3 mn people said to be facing moderate to severe acute food insecurity.
- More than 6 months after announcing the “debt default”, Sri Lankan authorities meet its largest sovereign overseas bondholders for the first time, in Washington: financial and legal advisers “Lazard” and “Clifford Chance”, and CB Governor Weerasinghe and Treasury Secretary Siriwardena represent Sri Lanka.
- Highly active Tourism Minister Harin Fernando lauds Sri Lanka being acclaimed among the 13 “safest” counties to travel in the world: Sri Lanka is 12th, while Iceland is 1st as per WorldPackers.com.
- Amendments to National Transport Act pertaining to three wheeler regulations languish in government departments for months: three wheeler fares fluctuate, without regulations.
- Uttara Lanka Sabagaya led by former Minister Wimal Weerawansa to start countrywide series of meetings: objective to strengthen the state and guide the country out of the current economic crisis.
- Energy Minister Kanchana Wijesekera says the Ministry of Energy has been informed that the Central Bank can only provide USD 200 mn per month for energy imports: prior to April 2022 before debt default, USD 500 mn was provided by the Central Bank for energy even while paying forex debt and providing forex liquidity to the state banks.
- India Women’s Cricket team win their 7th Asia Cup title: beat Sri Lanka by 8 wickets: SL – 65/9 (20 overs): India – 71/2 (8.3 overs).
Cyclist collided with jeep belonging to Sanath Nishantha severely injured
A cyclist who collided with a jeep reportedly belonging to State Minister Sanath Nishantha in Puttalam yesterday (15) was severely injured and hospitalised.
Due to his severe condition, the injured cyclist was transferred to Kurunegala Teaching Hospital.
The injured is a 45-year old father of four children living in Thiladiya, Puttalam.
MIAP