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Japan extends helping hand for Sri Lanka debt restructure

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Crisis-hit Sri Lanka began on Friday the tricky task of debt renegotiation with a raft of private and bilateral creditors, including China, India and Japan, to restructure and repay nearly $30 billion that it owes.

Japan, one of Sri Lanka’s main creditors, will back the South Asian nation as it seeks to restructure about $30 billion of its foreign debt and find a way out of a crippling economic crisis, Tokyo’s envoy to the country said on Friday.

Reaching an agreement with creditors is key to Sri Lanka securing a $2.9 billion bailout package from the International Monetary Fund (IMF).

“Japan stands by Sri Lanka in support of the debt restructuring negotiation process so that Sri Lanka can reach the final agreement with the IMF,” Ambassador Hideaki Mizukoshi said in an interview.

Japan holds around $3.5 billion of Sri Lanka’s total bilateral debt of about $10 billion, amounting to 4.4% of the island’s GDP, according to government and IMF data.

Japan is also a major trading partner.”Japan intends to play a constructive role with other creditor countries, including China and India,” Mizukoshi said.

Sri Lanka is facing its worst economic crisis in decades, with severely depleted foreign exchanges reserves leading to prolonged shortages of essentials, including fuel and food.

The financial turmoil is the result of economic mismanagement and the impact of the COVID-19 pandemic that upended Sri Lanka’s lucrative tourism industry.

Although Japan will support the debt negotiation process, Mizukoshi said that talks on large infrastructure projects will only be resumed after Sri Lanka’s economy recovers.

“In the future, when this economic crisis is over and the economic conditions are in good shape, we can restart that kind of discussions,” he said.

Sri Lanka suspended a $1.5 billion Japanese-funded light rail project for the commercial capital Colombo in 2020, citing financial problems.

Regional rival China has built ports, highways and power stations on the island as part of its Belt and Road Initiative, drawing concern from Sri Lanka’s northern neighbour India.

Japanese firms have been investing in Sri Lanka since the 1970s, including in the electronics, ceramics and engineering sectors.

But investments have been hamstrung because of inconsistent economic policies and procedural obstacles, Mizukoshi said.

“I hope that those things will be improved,” he said. “We hope that the environment for investment to Sri Lanka will improve,” he said.

Four health-conscious cities putting pedestrians first

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By Lindsey Galloway

Inspired by Covid-19’s long lockdowns and safety concerns, cities are implementing pedestrian-friendly initiatives and pushing for more car-free spaces.

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When the initial wave of Covid prevented indoor gatherings in most countries around the world, many cities responded by quickly reimagining what life could look like outside. Some introduced pedestrian-only streets, turned parking spots into pop-up restaurants and added more bike lanes – transforming once car-filled areas into walking- and cycling-friendly spots.

The changes paid dividends, not just in increased economic activity, but studies also showed the virus may spread less quickly in highly walkable neighbourhoods. And while many places have now rolled back these initiatives as life returns to the new normal, some cities have held fast to their pedestrian improvements and have been pushing for even more car-free spaces.

We’re profiling four cities around the world that made some of the boldest and fastest pedestrian-friendly changes during the pandemic – and are keeping many of those initiatives to encourage residents and visitors to get around on foot.Paris residents are increasingly enjoying car-free spaces (Credit: Spooh/Getty Images)

Paris residents are increasingly enjoying car-free spaces (Credit: Spooh/Getty Images)

Paris, France

Even before the pandemic, Paris had a head start in becoming more pedestrian-friendly. As part of a city-wide effort to reduce the number of cars, the lower quays that run along the Seine river were fully pedestrianised in late 2016, a move that was made permanent in 2018. In 2020, Mayor Anne Hidalgo was re-elected in part due to her support of the “15-minute city”: a new urban planning concept that allows residents to complete all their daily tasks – from shopping to schooling to work – within the distance of a 15-minute walk or bike ride.

I’ve lived in Paris for 14 years, and I can confidently say that I’ve never seen a greater, city-wide transformation than the one that’s happened most recently to encourage cyclists

The pandemic, paired with numerous public-transportation strikes prior to lockdown, only strengthened the popularity of these human-centric and environmentally sustainable initiatives. “The beauty of getting around by foot in Paris is highlighted more since Covid,” said Kathleen Peddicord, founder of Live and Invest Overseas. “Public transportation was a no-go for a long time and was also more uncomfortable having to wear masks. So, more people started using their feet.”

Additional bike lanes have also been introduced to alleviate car traffic. In fact, the city plans to add an additional 180km of bike lanes and 180,000 bike parking spots by 2026.

“I’ve lived in Paris for 14 years, and I can confidently say that I’ve never seen a greater, city-wide transformation than the one that’s happened most recently to encourage cyclists,” said Sadie Sumner, who runs the Paris branch of bike touring company Fat Tire Tours.

Major throughways like the Rue de Rivoli in central Paris have been reduced to one lane, while cyclist paths have been expanded to the width of three car lanes.

The city also plans to plant 170,000 trees by 2026, with the intention of cooling Paris to make it more comfortable and enjoyable for pedestrians. In anticipation of the city’s hosting of the 2024 Olympics, the bridge between the Eiffel Tower and Trocadero will be fully pedestrianised, too.

Overall, residents have appreciated the widespread changes, and look forward to even more. “The locals really like it, there are less cars and people seem to be a bit more relaxed,” said Paris native Roobens Fils, who blogs at Been Around the Globe. He had suggestions for walking-minded travellers: the Parc Rives de Seine, a 7km-long stretch by the river; rue Montorgueuil in the heart of Paris for its cheese, wine and flower shops; rue Saint Rustique in Montmartre for its ancient cobblestones (this is the oldest street in Paris); and Cour Saint Emilion for its boutiques, cafes and restaurants.Bogotá was one of the first cities to add "pop-up" cycle lanes during the pandemic (Credit: Pablo Arturo Rojas/Getty Images)

Bogotá was one of the first cities to add “pop-up” cycle lanes during the pandemic (Credit: Pablo Arturo Rojas/Getty Images)

Bogotá, Colombia

While Bogotá (and Colombia in general) has always had a strong bicycling culture, with cycling as the country’s national sport, the pandemic accelerated many car-free changes. In 2020, Mayor Claudia Lopez designated an additional 84km of temporary bike lanes to the city’s existing 550km Ciclorruta bike path network – already one of the largest in the world – and they have since become permanent.

Bogotá was among the first cities globally to add “pop-up” cycle lanes during the pandemic, and residents have noticed the permanent changes have been for the better. “The city has really started to develop a noticeable Amsterdam and Copenhagen vibe over the last few years,” said Alex Gillard, founder of Nomad Nature Travel blog and who lived in Bogotá on and off during the pandemic. “There are so many bikes on the streets at all hours of the day, it is quite inspiring.”

On Sundays and public holidays, cars are completely banned from certain routes in a programme known as the Ciclovia, attracting more than 1.5 million cyclists, pedestrians and joggers each week.

The city’s new SITP buses, which run on electricity and gas, have also improved the public transportation system significantly, according to locals. “The vibe of Bogotá has changed. It’s much easier, calmer and safer to move around in the city now,” said resident Josephine Remo, who writes an eponymous travel blog.

She recommends travellers check out the historical neighbourhood of La Candelaria where the city was born more than 400 years ago; they’ll find plenty of museums about the city’s rich history, as well as restaurants housed in centuries-old buildings. She also suggests Usaquén Park for its weekend open-air market, where visitors can check out local Colombian food, crafts and music events.Milan's new CityLife district is one of the largest car-free zones in Europe (Credit: M M Photographer/Getty Images)

Milan’s new CityLife district is one of the largest car-free zones in Europe (Credit: M M Photographer/Getty Images)

Milan, Italy

Italy was one of the countries hit hardest initially in the pandemic, and its cities had to adapt quickly to provide alternatives to densely populated public transportation. In summer 2020, Milan embarked on an ambitious plan to widen pavements and expand cycling lanes along 35km of roads previously centred on car traffic. The changes have transformed the city, bringing with it more outdoor dining, open-air markets and urban gardens.

“It’s not the Milan I remember from 10 years ago during my college days,” said resident Luisa Favaretto, founder of living abroad site Strategistico. “I love the concept of the 15-minute city [a plan Milan has also explored] and was drawn by the city’s evolving infrastructure that prioritises people over cars.” She’s seen a growth in what she calls an “old world” sense of community, as there are more reasons to be outdoors and to meet in communal spaces.

The new CityLife district is not only Milan’s largest car-free area but one of the largest car-free zones in Europe. “It is filled with public green spaces along with tons of bike lanes, and offers a glimpse into the future of a sustainable Milan,” said Favaretto. She also recommends strolling the canals of Navigli and enjoying the neighbourhood’s outdoor dining options and nightlife. The north neighbourhood of Isola has been transformed from an industrial district to a walkable and bikeable area full of hip cafes, galleries and boutiques.

Travellers also don’t have to worry about finding a bike to enjoy the cycling lanes. The city’s bike sharing service, BikeMI, has 300 stations across the city and offers both regular and e-bikes.The Embarcadero was originally a freeway until a 1989 earthquake rendered it unusable (Credit: Christopher Chan/Getty Images)

The Embarcadero was originally a freeway until a 1989 earthquake rendered it unusable (Credit: Christopher Chan/Getty Images)

San Francisco, US

This northern California city moved quickly during the early pandemic to launch Slow Streets – a programme that used signage and barriers to limit car traffic and speeds on 30 corridors in an effort to make them more pedestrian- and cyclist-friendly. According to data collected by the city, the programme saw a 50% reduction in vehicle traffic, a 17% increase in weekday pedestrian traffic and a 65% jump in weekday cyclist traffic.

It is lovely for pedestrians and bikers to be able to share the streets

Though many of the streets have since been returned to pre-pandemic status, residents pushed to make four sections permanent, including those on Golden Gate Avenue, Lake Street, Sanchez Street and Shotwell Street. In September, a vote will be held on the future of the other corridors.

“It is lovely for pedestrians and bikers to be able to share the streets,” said resident Leith Steel on the roads that are still closed. “You see families out walking, kids playing – it is a much different experience.”

She also notes that the city has put money and effort into building better bike routes throughout the city, and they are more clearly marked than previously. She recommends really exploring each neighbourhood in San Francisco, since they each have their own feel and character. She likes the tree-lined Hayes Valley for its upscale and modern vibes; Outer Sunset for its laid-back surfer vibe and 3.5-mile stretch of white sand beach; and North Beach for its lively street cafes (and the 4th most walkable neighbourhood in the city).

Though there’s still much to be done to change San Francisco into a truly pedestrian-friendly city, history shows it can be done. One of the city’s most walkable areas – the Embarcadero along the waterfront – was once a freeway until a 1989 earthquake rendered it unusable for vehicles.

BBC

UK provides lifesaving aid worth £3 million for the most vulnerable in Sri Lanka

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The UK is providing urgent food and farming support to Sri Lankans hit hardest by the economic crisis, Lord Ahmad announced today (Friday 23 September).

More than one third of people are struggling to eat and are suffering shortages of fuel, power, and medicines. Sri Lanka has the fifth largest food price inflation in the world, up 93.7% last month, with rice costing 150% more than this time last year.

In a meeting with Sri Lankan Foreign Minister Ali Sabry at the UN General Assembly, Lord Ahmad has announced the UK’s package of £3 million lifesaving support.

The funding will be delivered through Red Cross and UN partners. It will provide access to food, seeds, and tools to help grow crops as well as mental health care, including for survivors of sexual and gender-based violence. 

UK Minister of State for the Middle East, South Asia, and the UN, Lord Tariq Ahmad of Wimbledon said:

The UK stands by the people of Sri Lanka who are facing such a challenging time. The ongoing crisis is deeply concerning with so many in dire need of help. 

We are providing £3 million of lifesaving support to the most vulnerable and will continue to work with international partners to help Sri Lanka.

This new funding is just part of the UK’s ongoing support to Sri Lanka. The UK is already providing support through the UN Central Emergency Response Fund , the World Bank and the Asian Development Bank.

The UK is the largest donor to the CERF, contributing more than $1.7 billion to the fund since its inception in 2006 and it has already provided $5 million to Sri Lanka.

The Asian Development Bank and World Bank are providing emergency assistance under a joint action plan to help reduce the impact of economic crisis on the people of Sri Lanka.

This new package is in addition to the UK’s £11.3 million Conflict, Stability and Security Fund (CSSF) programme (2022 to 2025) for Sri Lanka which focuses on addressing the legacy of conflict in the country.

The people of the UK and Sri Lanka share close ties, with a large diaspora community in the UK, and 65,000 British visitors to the island since January 2022

Taking to twitter, Minister Ali Sabry mentioned that during the meeting held on the sidelines of the UN General Assembly, Lord Tariq Ahmad set out the UK’s package of £3 million assistance to Sri Lanka.

While extending gratitude for the assistance, Minister Ali Sabry also briefed Lord Tariq Ahmad on steps being taken towards reconciliation and accountability in Sri Lanka. 

The funding will be delivered through Red Cross and UN partners. It will provide access to food, seeds, and tools to help grow crops as well as mental health care, including for survivors of sexual and gender-based violence.

“The UK stands by the people of Sri Lanka who are facing such a challenging time. The ongoing crisis is deeply concerning with so many in dire need of help. We are providing £3 million of lifesaving support to the most vulnerable and will continue to work with international partners to help Sri Lanka,” Lord Tariq added.

At least 32 SL citizens leave country every hour, more than 500 doctors left in last eight months: NMSJ

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Remarks by Mr Karu Jayasuriya, Chairman of the National Movement for a Just Society and the Collective for National Religious Reconciliation, at the conference held in Chilaw, Puttalam recently titled “Establishing National Religious Reconciliation and a New Constitution for a Better Country”.

We have been travelling across the island, visiting many areas in a bid to spread the vision of the late Ven. Maduluwawe Sobitha Thera with the noble objectives of restoring the people’s lives, preserving democracy, creating national and religious harmony, and abolishing the Executive Presidency.

During these visits, we meet with civil society representatives, including religious clergy, professionals, doctors, farmers, teachers and workers from the area to collect ideas and suggestions needed to rebuild the country. Gathering such comments have proven useful as the opinions of the people must always be heeded and respected when building a country. Failing to initiate such a discourse was one reason for the country’s recent and rapid deterioration.

The 20th Amendment to the Constitution implemented in 2020 led to the destruction of democracy. At no time did the government seek the participation or the opinions of the people in this regard. The country was destroyed solely through the 20th Amendment. From the moment the constitutional amendment was first introduced we raised our strong opposition against it as we identified the many dangers within it.

Instead, we constantly called for the 19th Amendment to the Constitution to be re-empowered. As promised by the government, the enforcement of the law must now take place in the next parliamentary session subject to the recommendations of the Supreme Court. It is an assurance given by the government to the people.

We should pay attention to the day-to-day struggles of the people such as the increasing cost of living, power cuts, shortage of fuel and foreign exchange, the collapse of the agriculture industry, and the difficulties faced by the fishermen.

According to the latest reports, at least 32 Sri Lankan citizens go abroad every hour. More than 500 doctors have left the country in the last eight months. Hundreds of intellectuals including engineers are going abroad. Facing severe disillusionment and disappointment, they are now leaving the country hoping to at least provide their children with the best education possible. With Sri Lanka lacking the necessary facilities for university education, parents are now being forced to sell their properties to go abroad along with their children. We are losing our future national resources. All these are individuals created through Sri Lanka’s free education system. These are signs of a country’s rapid decline. A country cannot develop or prosper in this manner. Every citizen must have a deep understanding of these issues.

Our country is blessed with natural resources and an ideal geographical location. To date, we still believe that this country can be rebuilt. To this end, national unity and consensus are very important. This must first come through Parliament. Next, a consensus must take place among the citizens.

The National Movement for a Just Society is not aligned with any political party or political force. It is merely a group of patriots united for the betterment of the country. We are therefore travelling around the country making an appeal to the people for national religious reconciliation and consensus.

Our strength comes through the people. Locals as well as the Sri Lankan communities abroad are working with us closely. We often receive important ideas and proposals from both local and foreign academics. To date, we have conducted many discourses and dialogues via Zoom on issues affecting the people. Tomorrow, Sunday the 25th we will hold the 100th webinar of the series.

This exchange of ideas gives rise to important proposals which in turn we present to the authorities. Had the government paid attention to these details previously, the country would not be facing this tragic fate today.

We have come to Chilaw in the Puttalam district today to explain the need for national and religious unity and a common national consensus. We have a respected religious leadership and distinguished representation before us today. Your participation is an honour and strength for us.

Give us your blessings if you are agreeable to the ideas presented here today. Take this message to your villages. Let us join hands to rebuild a harmonious and prosperous country.

Opposition Leader says women’s representation in national human resources force is important! (VIDEO)

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“Increasing women’s representation in the national human resource force is important. This will be a vital factor in future growth of foreign investments, new technological development and growth of the ICT sector. I am confident that national development can be accelerated by empowering youth with new skills and new opportunities needed for the modern era” : Sajith Premadasa Leader of the Opposition

Mr Premadasa made these remarks at a discussion he had yesterday (22/9/2022) with Graduates and Project Officers who had been terminated from employment in an unfair manner.

Mr Premadasa explained that it is important to conduct needs assessment and support individuals based on real needs, instead of providing hand outs free of charge.

He pointed out that Sri Lanka can be developed by a result – oriented and committed workforce. For this, it is necessary to think and step out of the box and take decisions focusing on priorities.

Mr Premadasa maintained that he will personally stand up for the rights of those who had lost their jobs unfairly. He gave an assurance that the Samagi Janabalawegaya will ensure that all are treated fairly and justice will be metted towards those who lost their jobs due to political revenge.

Fact Check: Is China Having A Coup And Is Xi Jinping Under House Arrest? Here’s What We Know

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Rumours of a coup against Chinese President Xi Jinping are going around on social media, but experts have highlighted that there is no concrete evidence of coup or any disturbance in China so far.

The internet is abuzz with reports saying ‘something is up’ in China, with people’s guesses ranging from a political or military coup against President Xi Jinping to potential military activity in Western China. 

The evidence cited for such guesses includes reports of cancelled passenger flights in parts of China, Xi not being seen in public for some time, and footage allegedly of military vehicles moving towards the capital Beijing.

However, there is neither any official comment on these guesses nor any confirmed report on military movement towards the capital. 

Here we share what’s being said on social media, particularly in India, and what are the facts that we know for sure. 

Is Xi Jinping facing a coup?

Twitter accounts with several thousands followers have shared that there has been a coup against Xi. Photographs of a successor have also appeared. However, none of these updates are from verified or credible accounts and most of these accounts are of anonymous users.

Videos of alleged military movement have also surfaced. 

“This video of military vehicles moving to Beijing comes immediately after the grounding of 59 per cent of the flights in the country and the jailings of senior officials. There’s a lot of smoke, which means there is a fire somewhere inside the CCP. China is unstable,” said author Gordon G Chang. 

Defence affairs writer Saurav Jha shared on Twitter that there were no flights over Tibet Autonomous Region of Cihna earlier on Saturday.

“Of direct concern to us here in India. Many Flights to Lhasa Gonggar are also being cancelled. We have to see if there is an uptick in military air traffic over the Tibetan plateau or not,” said Jha, hinting at possible military activity in Western China that borders China, where India and China are engaged in a military stand-off for over two years.

What experts have said?

Most of the China experts have highlighted that there are no signs of the coup beyond commentary on social media, particularly in Indian circles.

China expert Aadil Brar noted that Xi is likely in quarantine after returning from the Shanghai Cooperation Organisation (SCO) Summit, which would explain his absence from public affairs at the moment. 

Brar also shared flight data showing there is no disruption of flights. He further shared visuals of public briefings by senior Chinese officials, suggesting that government is functioning normally. 

Journalist Zakka Jacob higlighted that Xi has a powerful institutional hold over China which makes a coup unlikely.

“Lots of rumours this morning about a military coup in China. Nothing credible so far. Military coups are unlikely in China because the People’s Liberation Army comes under the Central Military Commission. Xi, as General Secretary of the Communist Party heads the CMC. The Army is that of the party, not government,” said Jacob in a tweet.

Journalist and author Ananth Krishnan also said there is no evidence so far of a coup. 

“While Chinese politics is the blackest of black boxes, I’ve come across zero evidence in Beijing today to substantiate any of the social media rumours,” said Krishnan on Twitter, noting that the rumours have surfaced in the run up to the crucial Chinese Communist Party in which Xi is expected to secure an unprecedented third term. 

The Hong Kong-based South China Morning Post has not reported about any coup or political upheaval in China at all. It has posted dozens of tweets in the last 24 hours about various issues concerning China and the world, but not even a remote hint about the alleged development in Beijing.

OutLook India

SL to call for immediate coal tender amidst missing bid bond saga

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Sri Lanka is set to face a serious energy crisis pushing the country into a power crisis  with countrywide ten hour power cuts if the government fails to import required stock of coal to run the Norochcholai power plant soon in double quick time, the Ministry of Energy said. 

Currently, the stock of coal in the plant is sufficient only till October 25th, 2022.After October 25th, sufficient coal stocks should be provided for power generation at the Norochcholai coal-fired power plant.

The government will be calling for an immediate tender on Tuesday (Sep. 27) to procure coal for the Lakvijaya power plant in Norochcholai after the coal tender that was awarded on August 25 was cancelled, says General Manager of Lanka Coal Company, Namal Hewage.

This follows the stock market disclosure that Black Sands LLC has not managed to submit the performance bond before the stipulated timeline of September 8.

The time given to the company to deposit the performance bond related to the transaction lapsed recently and they have not deposited that bond either. Thus, the long-term tender for the supply of coal is now in serious crisis.

On Sep. 23, Minister of Power & Energy Kanchana Wijesekera announced that the selected supplier has pulled out after communicating the inability to perform the tender, while citing concerns about the impact on legal cases filed and payment guarantee risk.

Accordingly, the Lanka Coal Company will publish a new International Open Competitive Tender that will allow any suitable supplier that has the ability to provide Coal on a long-term credit basis.

Sri Lanka’s Cabinet Spokesperson on Friday (23) revealed that a conspiracy is taking place to deprive the country of on-time coal imports.

Minister Bandula Gunawardena, the country’s cabinet spokesperson, said that a conspiratorial plan is afoot to deny the on-time coal delivery and to extend the power cuts.

Recently, bids were invited to contract a long-term supplier of Coal for Sri Lanka. Several companies submitted bids during the formal tender process and another company submitted bids outside the tender process.

After opening and evaluating the bids submitted outside the tender process, the proposals submitted in the formal tender process have been evaluated.

Ultimately, it was decided to award the long-term supply to the company that submitted bids via the proper tender process.

But the company that submitted bids outside the tender process had again submitted a bid at a lower price.

The Minister of Power and Energy recently revealed in Parliament that the said bidder also influenced the company that offered the tender.

The company that was awarded the tender has imposed several conditions for the supply of coal and they have not been able to fulfill those conditions as they agreed.

Currently, the company that supplies coal has to supply 21 more shipments.But the supply of those stocks is now in crisis due to the delay in payment.

But it was reported that the company has agreed to provide 50 percent of these 21 shipments on a pre-paid system.

In order to receive a stock of coal to the Norochcholai power plant before October 25th, a certain amount of money should be paid at least by next Monday.At least 95 million dollars is needed for 5 coal ships.

Accordingly, if the concerned company is not paid this amount or part of it by Monday, the country’s electricity supply will be in danger from the 25th of October 2022.

Police issue statement on arresting SYU protesters

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The Police Media Division issued a statement on the recent arrest of protesters who marched at the Colombo Lipton Circle yesterday afternoon (24) in the form of a demonstration organised by the Socialist Youth Union (SYU) against the recently decreed High-Security Zones, calling the movement ‘illegal’ and revealing that 83 persons were taken into custody.

Among the arrestees are 77 men, 04 women and 02 Buddhist monks, Police said.

The demonstrators avoided repeated warnings by the Police to dissolve themselves and marched forward, and the arrests were made given the protest’s illegal nature, because it obstructed traffic and the public walking on the road, and to avoid the risk of them entering the High-Security Zones, and accordingly, the march was dissolved by force and 83 persons were arrested, the statement said.

MIAP

Aeroflot to resume flights to Sri Lanka beginning Oct 9

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Aeroflot plans to resume flights from Moscow to Colombo, Sri Lanka, beginning on October 9, the Russian flagship carrier said in a statement. The company will operate flights twice per week initially.

Flights to Bangkok, Thailand, will resume on October 30, and there will be seven flights per week, the statement said. Moreover, the airline will operate up to three flights per week to Goa, India, beginning on November 2.

Flights will be carried out on a wide-body Airbus A330. Aeroflot suspended flights to Shri-Lanka in June after one of its airplanes was seized in Colombo.

An Airbus A330 arrived in Shri-Lanka to collect passengers and return to Moscow, but was unable to take off due to an order issued by a local court that had received an appeal filed by an Irish company linked to the aircraft’s lessor. The plane was able to leave Shri-Lanka after several days when the court reversed its decision.

Aeroflot General Director Sergei Alexandrovsky earlier announced plans to open flights from Moscow to Bangkok and Goa on the winter timetable. Other destinations considered included Egypt’s Sharm El Sheikh and Hurghada, as well as Dubai, Alexandrovsky said.

Airport and Aviation Services (Sri Lanka) (Private) Limited said  that Aeroflot Airlines recommenced its flight operations last year to Colombo from Moscow with a flight frequency of 2 flights a week between Moscow and Colombo after one year due to Covid19 out break in the island before the suspension of its flights this year.

The first flight, (SU284) with a total number of 240 passengers arrived at 10.50 hrs at Bandaranaike International Airport (BIA) on 21st November 2021.

Aeroflot-Russian Airlines will initially operate flights every Friday and Sunday and it will increase the frequency up to five times a week in the near future.

Aeroflot-Russian Airlines is the oldest international airline that operated international flights to Colombo and it has been operating the Moscow-Colombo route since 1964. Aeroflot had to stop operations to Colombo in 2020 due to the COVID-19 global pandemic.

This route development will boost the tourism industry in Sri Lanka especially in the post-pandemic period.

Russia has been one of the most reliable and friendly destinations for Sri Lanka to attract tourists and for many decades.

Russian inbound tourism has been showing its great potential as an important source market for the development of the travel and tourism industry in Sri Lanka.

On the other hand, Sri Lanka is steadily becoming one of the emerging popular destinations for Russian tourists.

Therefore, the recommencement of the Aeroflot airlines to Sri Lanka will immensely contribute to the booming aviation, travel, and tourism industry in Sri Lanka.

Lanka Sathosa under goes restructuring soon to minimise losses

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Sri Lanka’s loss-making state-run retail store chain Lanka Sathosa, which has made billions of rupees of losses amid allegations of mismanagement and corruption is to be restructured soon.

The retail store network registered an annual loss of around Rs.779 million in 2020, significantly lower than the Rs.1.9 billion lose recorded in 2019 while the net loss from 2015 – 2019 amounts to Rs. 11.9 billion and accumulated debt was around Rs.28 billion, finance ministry data shows.

But in 2021 it has recorded trade turnover of Rs. 41 billion as a result of increasing sales of essential commodities at control prices imposed by the Consumer Affairs Authority.

The Sathosa restructuring process will be carried out following the establishment of State-Owned Enterprise Restructuring Unit” with the allocation Rs. 200 million proposed in interim budget 2022.

This will be given priority in accordance with the government’s food security programme under the social security net proposed in interim budget 2022, a senior Trade Ministry official said.

He noted that Sathosa retail outlets numbering around 420 countrywide will be transformed in to profit making entities to sell fast moving food products for the benefit of urban and rural consumers at reasonable prices.

“We have to sell essential goods below cost because as a state enterprise we are required to do so, “he said adding that by restructuring it, the ministry hopes to reduce overhead costs passing its benefit to consumers.

“We have a duty to provide a service to the people to provide food items easing the cost of living, but it is essential to tackle a mismatch via restructuring to make it profitable, “he said.

It has been proposed to introduce modern technology such as an enterprise resource planning system, and controls to cut waste, staff and logistics costs, he disclosed.

Lanka Sathosa is planning to expand the retail chain by another 100 countrywide including the North and East.

20 ‘mega stores’ to sell a wide range of consumer goods and provide banking and provide dining facilities will be opened to meet the competition of super market chains like Arpico, Cargills and Keells Super.