The contemporary world that adults live in is not the world children see. It is very simple and delicate. They thirst for curiosity. As adults, we should understand this wisely and make sure to create a unique world for them.

If you consider the past few years, it is evident that the present society is very different from the social background in which the children lived a few years ago. There are many disclosures made by the media in this regard. In such a background, it is my duty as the head of state, to ensure that all the children of the country receive a balanced and nutritious diet containing the right amount of calories. My mission at this moment is to create a developed country for the future generations of this land.

Based on the policy statement presented by me, the required measures for the care of those in poverty and under privileged groups are being carried out in a systematic manner. Measures have also been taken to provide a balanced meal at the expense of the government and as initial step a nutritious meal for 1,080,000 schoolchildren prior to the commencement of classes, is already in progress. This programme is being carried out with the approval of Health Ministry Nutritionists. Further, in addition to the allowance paid to pregnant mothers, the government has focused its attention on granting an additional monthly allowance for families undergoing food insecurity.

It is our duty to take care of the elderly community who have made unprecedented sacrifices to preserve children’s pleasant childhood and the country’s betterment. It is interconnected with our culture. Food, education, sport recreation, rest sleep mental and health wellbeing are only a few of children’s requirements. We are both culturally and legally bound to ensure these facilities. It is my view that it is the responsibility of all parents, teachers and civil society representatives, apart from the government, to fulfil these needs.

Let us all join hands in committing ourselves to ushering in era where all children and elders will be taken care of compassionately.

Ranil Wickremesinghe
President of the Democratic Socialist Republic of Sri Lanka
01 October 2022

Sri Lanka removed restrictions on imports to help ease shortages of everything from food to medicine.The 369 items on the list can now be shipped in without an Import Control License, the Finance Ministry said in a statement Wednesday.

It also postponed implementation of open-account payment changes allowing the release allowing the release of all such cargoes considering the need to import essential food items to tackle the shortage

The Government will ease the restriction imposed on the importation of 798 items including 369 non-essential items providing relief for selected importers to bring down certain items after obtaining permits (import control licence) .

These 369 import restricted items included cosmetics, fish, dairy products, fruits, electronics including mobile phones, computer accessories, watches, household appliances, furniture, sanitary ware and toys.

The importation of these items is subject to applicable rules and regulations including duties and taxes at the time of Customs clearance of cargo / consignments, the Finance Ministry circular stipulated.

This decision taken by the Finance Ministry on the directions of Central Bank headed by Nanda lal Weerasinghe who came under severe criticism of former ruling party politicians including firebrand Wimal Weerawansa and SME associations.

The government will ease the import ban on some goods that have been temporarily suspended due to the prevailing economic crisis, Finance State Minister Ranjith Siyambalapitiya said.

A gazette notification was issued on August 23, 2022 suspending importation of number of non-essential items.

The minister said that import restrictions were imposed on the relevant goods on the basis that they can be produced locally or are not essential.

“Our foreign reserves are at a very low level. We need money to import essential items such as gas, oil and medicine. So we wanted to create a priority list,” he said

He said this during an observation tour at the Import and Export Control Department that the government had taken steps to suspend 1,465 items in the gazette notification.

However, taking into consideration the requests of various parties including Chambers of Commerce, the import restrictions of 708 items were removed.

He said further relaxation of import restrictions will be done in the future. He pointed out that the government’s expectation is to relax the import restrictions so as to be able to import the raw materials needed for local industries as well as protect the foreign reserves.

1. World Bank President David Malpass asks Sri Lanka to move quickly in debt restructuring process & access IMF Program: wants Sri Lanka to have a plan and execute it fast: warns WB will not offer new financing until macro-economic policy framework is in place: insists on “deep structural reforms that focus on economic stabilisation”.
   
2. Japanese Finance Minister Shunichi Suzuki says Japan is prepared to “do its part” over Sri Lanka’s debt issue, provided other creditors like China and India are involved.
   
3. President Ranil Wickremesinghe asserts Sri Lanka will shoulder an unprecedented fiscal effort to restore country’s debt sustainability: hopes creditors and stakeholders will support the efforts.
   
4. Social Security Contribution Levy to be imposed at 2.5% on turnover of importers, manufacturers, service providers, wholesalers and retailers: effective from 1st October: threshold to be annual turnover of more than Rs.120 million.
   
5. CCPI Inflation gallops to 69.8% in September from 64.3% in August 2022: Sri Lanka’s Central Bank yet to follow its Argentine counterpart which increased its benchmark interest rate to 75% as it’s inflation reached near 80% last week: Argentina is currently under an IMF programme.
   
6. College of Medical Laboratory Science President Ravi Kumudesh says the National Hospital, Colombo has stopped most bio-chemical tests due to shortage of reagents: also says many patients are asked to get tests done in private labs, to which some senior officials are connected.
   
7. President Ranil Wickremesinghe meets ADB President in Manila: proposes establishment of an International University on Climate Change in Sri Lanka.
   
8. Colombo Mayor Rosy Senanayake allows Music Festival at Lotus Tower to go ahead after the name “Hellfire” was changed to “Fire”: Hellfire said to be the name of a satanic cult.
   
9. Colombo District Court Judge Kalhari Liyanage orders team of doctors and nurses of the District General Hospital, Gampaha to pay Rs.30mn in compensation to a child for causing permanent disability by performing a natural delivery in 2012, even after being aware that the child’s umbilical cord was wrapped around her neck.
   
10. Sri Lanka Legends Cricket tram beats West Indies Legends by 14 runs and qualify for the Finals with the Indian Legends, in the World Championship for Legends: Sri Lanka Legends 172/9, West Indies Legends 158/7.

Sri Lanka’s government appears increasingly upbeat about its chances of receiving International Monetary Fund (IMF) board approval for a USD 2.9 billion bailout by December, but the multilateral lender has cautioned that the time frame remains uncertain, and much depends on discussions with the heavily indebted country’s creditors.

However Sri Lanka is hopeful that the first tranche of the IMF disbursement will be available before the end of 2022, but it depends on cooperation from the creditors and assurances, revealed Central Bank Governor Dr. Nandalal Weerasinghe on Friday (23).

Peter Breuer, senior mission chief for Sri Lanka, and Masahiro Nozaki, mission chief for Sri Lanka, in written comments to Nikkei Asia, said, “It is difficult to predict the timeline, as the process of debt relief discussions takes time. All parties who are involved in the process should move expeditiously, so that Sri Lanka can emerge from the crisis as quickly as possible.”

On Sept. 1, Sri Lanka reached a staff-level agreement with the IMF to obtain the $2.9 billion, a crucial lifeline for a country wrestling with the worst economic crisis in its history. The country’s year-on-year inflation topped 70% in August, and the public continues to face severe shortages of essentials.

Earlier this year, Sri Lanka defaulted on a foreign bond for the first time, after its foreign reserves dwindled to next to nothing. “We announced that we are not in a position to pay,” central bank Gov. Nandalal Weerasinghe said in May, confirming the “pre-emptive default.”

“Our position is very clear. Until [the lenders] come and restructure, we can’t pay,” Weerasinghe said.

Last Friday, Sri Lanka’s Finance Ministry held an online presentation for external creditors to explain the situation and discuss the next steps toward restructuring. A handout cited “some past policy mistakes” along with the COVID-19 pandemic and the resulting crisis as key factors that crippled the economy, depleted reserves and forced the country to stop debt repayments.

The day before, President Ranil Wickremesinghe chaired a meeting with ambassadors from 23 Paris Club and non-Paris Club countries, including Japan, France and India, to discuss related matters.

Wickremesinghe appealed to all creditor countries to offer the “financing assurances” on debt sustainability the IMF has said are essential for the board to give the final green light.

The Indian High Commission in Sri Lanka, for its part, expressed support even before the creditor briefings. On Sept. 20 it said that it had started discussions on restructuring Sri Lanka’s official debt to India. A spokesman told Nikkei Asia that the “cordial atmosphere” of the talks reflected New Delhi’s support for an “early conclusion and approval of a suitable IMF program.”

Noting the need for other creditors to work on ensuring Sri Lanka’s debt is manageable, he added that India would remain “closely engaged” with relevant stakeholders.

During last Friday’s presentation, Weerasinghe and Mahinda Siriwardana, secretary to the Treasury and Ministry of Finance, noted that as of the end of June, Sri Lanka’s public debt stood at 122% of gross domestic product. A figure equivalent to 70% of GDP was denominated in foreign currency.

According to the presentation by the Ministry of Finance and the central bank, China, Japan and India were the country’s top three bilateral creditors, with China accounting for 52% in total, followed by Japan at 19.5% and India at 12%.

The Sri Lankan officials also pushed for the formation of an ad-hoc coordination group to expedite the process of obtaining financing assurances from multiple creditors. They explained that such a group would allow official bilateral creditors to give such assurances to the IMF collectively, after discussing the matter among themselves.

The Japanese Embassy in Colombo agreed that it is essential for all creditors to come to the table for debt restructuring discussions to ensure that the process is transparent and fair. “If all the creditor countries will participate in a coordination platform proposed by President Wickremesinghe, the government of Japan is ready to contribute to the discussion in a constructive way,” the embassy told Nikkei Asia.

But all eyes are on top creditor China, known for its preference for refinancing loans or deferring repayments rather than restructuring and settling for loss-making “haircuts.”

On the sidelines of the United Nations General Assembly last week, Sri Lankan Foreign Minister Ali Sabry met his Chinese counterpart, Wang Yi, who pledged China’s support for a Sri Lankan economic recovery.

A Chinese Foreign Ministry readout of the meeting said that Wang promised China “is ready to work with Sri Lanka to carry forward the traditional friendship, consolidate strategic mutual trust and deepen and expand pragmatic cooperation.”

He also said that China would “continue to offer assistance within our capacity to help Sri Lanka overcome temporary difficulties.”

Still, a highly placed Sri Lankan diplomatic source said that although debt discussions have started with some countries, it is “impossible” to say how long they will take and when a final decision will be made.

Sri Lanka three wheeler importation has dropped to almost zero level owing to government’s strict vehicle import ban with only 19 new registrations of tuk tuks posted during the past eight months for the first time in over four decades since it hit the roads, top official of the Motor Traffic Department (MTD) said.

Following its importation to Sri Lanka in quantity in the 1980s by Richard Peiris Company under president J R Jayawardene’s regime with open economy, the auto-rickshaw three-wheeler has replaced the Morris Minor as the taxi of Colombo and the suburbs.

This new three-wheelers taxis service became popular among the middle class and low income earners as a quick and convenient public transport mode at that time providing employment for hundreds of thousands of youth who suffered in frustration without jobs in economic down turn in 1970-77 period.

Three-wheelers are the main form of last-mile transport. They provide flexibility in labour markets, contributing to their popularity.

The final and most significant reason for the large number of three-wheelers is the lack of sufficient public transport – both in terms of quantity and quality. If there was an option for anyone to become a service provider of public transport, most three-wheeler drivers would have become public transport drivers.

MTD Commissioner General Nishantha Weerasinghe said only 2,093 three-wheelers were registered with the department last year.

According to MTD statistics 7,150 three-wheelers in 2020, 15,490 in 2019 and 20,063 three-wheelers had been registered at the Motor Traffic Department in 2018.

He noted that according to official records, new three-wheeler registration exceeds 50000 from 2011 to 2020; the annual average in 2011 was 138426 new three-wheelers the highest three-wheeler registration in a year, compared to 129547 three-wheelers registered in 2015.

He revealed that a total of over 1.18 million three-wheelers are registered with the department thus far but only around 500000 to 800000 were in running conditions at present.

Three wheeler services is an important source of employment for more than 500000, informal sector self employed persons although it has been branded as menace for many road users, a recent survey c revealed.

In the Colombo district, three wheeler drivers usually earn Rs 2000-3000 a day in other districts, some were able to earn around Rs 500 per day.

At present their daily income has come down due to five-litre weekly quota under QR system and the drop in the number of passengers traveling in three wheelers as they cannot afford high fares.

According to City Traffic Police most of these tuk tuk drivers are used to drive recklessly with least concern for other road users, violate traffic rules and road rules and creep into every nook and corner of the roads, cutting to every side, taking sudden U turns.

Among the other offences were stopping to pick-up wayside passengers, overtaking on the opposite lane to beat the traffic lights, constantly tooting the horn and intimidating and abusing other motorists.

Some of these drivers were engaged in drug trafficking and other vices or aiding abetting such offences, a senior DIG said adding that it is essential to regulate this service soon.

Japan is prepared to “do its part” over Sri Lanka’s debt issue, but other creditors, such as China and India, should also be involved in efforts to resolve it, Finance Minister Shunichi Suzuki said Thursday.

Suzuki made the remarks after meeting with Ranil Wickremesinghe, president of Sri Lanka, which has reached a preliminary agreement with the International Monetary Fund on a $2.9 billion loan as the Asian nation needs to restructure its massive debt.

Suzuki said he urged Sri Lanka during Thursday’s meeting to provide the necessary information, make its own efforts to get China, India and other creditors involved and boost transparency.

“Japan will do its part if such preconditions are met,” Suzuki told reporters without elaborating in the Philippine capital Manila, where he attended a meeting of the Asian Development Bank.

During his visit to Japan, the Sri Lankan president met Wednesday with Japanese Prime Minister Fumio Kishida and discussed the debt issue. The leaders recognized the importance of “fair and transparent” debt restructuring that involves all creditor nations, according to the Japanese Foreign Ministry.

Sri Lanka defaulted on its debt earlier this year. The COVID-19 pandemic added to the woes of the Asian nation, already struggling financially after taking out loans from countries such as China to develop its infrastructure.

In a speech at the annual meeting of the ADB’s board of governors, Suzuki said the COVID-19 pandemic and surging energy prices caused by Russia’s war in Ukraine have “heightened the risk of debt vulnerabilities.”

“All creditors should cooperate in providing support in a coordinated manner, while debtor countries undertake reform efforts towards achieving a sound level of debt,” Suzuki said, in an apparent reference to Sri Lanka.

Source: Kyodo News

It is reported that the strike which started this morning (30) by the railway controllers has ended a little while ago.

Accordingly, the train operation has been resumed and the train delay caused by the strike will be reduced by this evening, said the sources of the department.