MPs Pavithra Wanniarachchi and Jeewan Thondaman have been sworn in as Cabinet ministers.
Accordingly, Wanniarachchi has been sworn in as the Minister of Wildlife and Forest Resources Conservation, and Thondaman as the Minister of Water Supply and Plantation Infrastructure Development.
MIAP
The Government is to set up an international trade office to boost exports and promote Foreign Direct Investment (FDI) following the enactment of International Trade Office Bill in parliament
In the long-term, the Sri Lanka Foreign Direct Investment – Net Inflows is projected to trend around 350.00 US$ Million in 2023, according to finance ministry econometric models and provisional data.
Earnings from the merchandise exports decreased by 8.18 percent y-o-y to US$ 1,094.8 Mn in October 2022 as per the available data.
US $ 12 billion annual export income was insufficient and that to overcome the current crisis Sri Lanka requires over $ 20 billion or more.
The country’s Board of Investment and Export Development Board have failed to perform up to epectations owing to inefficiency officials and outdated official structure s and therefore the present government has taken measures to merge the two institutions.
“Despite taking a head start to open up the economy for international trade, Sri Lanka lagged behind exports and FDIs compared to economies that dealt with similar situations. Thus both these initiatives are critical to boosting our foreign inflows to overcome the economic crisis,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said
The Cabinet nod has been granted to appoint a supervisory committee to facilitate the establishment of the proposed agency for export and investment promotion amalgamating Board of Investments (BOI) and Export Development Board (EDB).
President Ranil Wickremesinghe on Monday sought the approval of the Cabinet of Ministers to appoint a supervisory committee to manage and guide the activities for the establishment of the proposed agency for export and investment promotion.
It was proposed in the budget 2023 to form an agency amalgamating the operations of the BOI and the EDB to promote export and investments with an integrated approach in a logical manner.
Cabinet nod has also given to prepare International Trade Office Bill based on preliminary draft
Approves appointment of expert committee to manage and guide activities of export and investment promotion agency
In a bid to boost exports and investments, the Government has decided to draft necessary laws and regulations to establish the proposed International Trade Office.
The new office is being set up to facilitate the free-trade agreements and to deal with all sorts of international trade negotiations, to boost foreign direct investments and exports.
The proposal for the establishment of one entity for investment and export promotion with an integrated approach in a coherent manner with one another has been presented by the budget proposals 2023.
With Colombo facing an unprecedented external debt restructuring process with foreign creditors amidst acute shortages of follar funds, India has given its assurance to the International Monetary Fund (IMF) in writing to support Sri Lanka in its task, Reuter news agency reported.
The Indian government has so far extended US $4 billion to keep the country’s accounts afloat and now it has also vocally supported Colombo’s efforts for an IMF bailout package of US$2.9 billion and restructuring of its debt.
The unprecedented humanitarian and financial aid provided by India on short notice showcases the country’s unique position in terms of its proximity to Sri Lanka and its capacity as well as capability to extend aid at a strategic level.
India has told the International Monetary Fund that it strongly supports Sri Lanka’s debt restructuring plan as the island nation seeks a $2.9 billion loan from the global lender, according to a letter seen by Reuters.
“We hereby confirm our strong support for Sri Lanka’s prospective (loan) program and commit to supporting Sri Lanka with financing/debt relief consistent with restoring Sri Lanka’s public debt sustainability,” Indian finance ministry official Rajat Kumar Mishra told the IMF chief in a letter dated Jan. 16.
Sri Lanka requires the backing of China and India – its biggest bilateral lenders – to reach a final agreement with the IMF on the $2.9 billion loan that is essential to help the country emerge from its worst financial crisis in seven decades.
All the assistance provided by India may well reap goodwill in Sri Lanka, but India’s long-term interests will be better served by weaving the geostrategic characteristics of the region into its Sri Lanka policy.
The maritime geography of the island nation provides immense potential in solidifying maritime linkages through capacity and capability building in the arena of maritime connectivity and security.
“The financing/debt relief provided by Export-Import Bank of India will be consistent with restoring debt sustainability under the IMF-supported program,” the official said.
Sri Lanka has to secure prior financing assurances from creditors, put its heavy debt burden on a sustainable path and boost public revenue before the global lender will disburse the funds, the IMF has said.
The island nation is confident of finalizing support from the IMF in the first quarter of 2023 .Sri Lanka owes India around $1 billion that will come under the debt restructuring plan, a source familiar with the matter told Reuters earlier this week.
The Sri Lanka government has announced the revision of the embarkation levy to be paid by passengers who leave the country through an international airport or seaport.
It has issued an Extraordinary Gazette notification announcing new embarkation levies to generate greater revenue for the Treasury at the expense of foreign exchange earnings from tourism and foreign remittances.
The embarkation levies are paid by persons departing from international airports or seaports countrywide.
As per the Gazette notification, any person departing from Bandaranaike International Airport in Katunayake will have to pay an embarkation leave of $ 60.
It also added that a $ 30 embarkation levy will be charged to each person departing from Jaffna International Airport during the period from 12 January to 11 July, while individuals departing from Ratmalana International Airport from 27 March 2022 to 26 March 2023 are also subject to a $ 30 embarkation levy.
However, individuals departing from Mattala Rajapaksa International Airport for two years from the date of the commencement of the operations by the airline are free.
The embarkation levy of $ 60 also applies to persons leaving the country from any other airport not mentioned above and seaports.As per the Gazette, these embarkation tax orders are effective from 12 January.
The Extraordinary Gazette notification has been issued by President Ranil Wickremesinghe in his capacity as the Finance Minister.
Analysts opine that it is extremely unjust to slap more taxes on people who suffer under the pressure of high taxation brought into cover mistakes of politicians.
The remaining one-third of the Embarkation Levy, which was transferred to the Sri Lanka Tourism Development Authority’s tourism promotional fund, was seized by the Treasury via the 2016 Budget, thereby grabbing the entire chunk.
Sri Lanka Tourism Development Authority has reported that in 2019, tourists paid Rs. 2.8 billion as Embarkation Tax, Rs. 4.2 billion to the Central Cultural Fund and Rs. 1.5 billion as Tourism Development Levy.
It was also pointed out that the increase in the Embarkation Levy, coupled with the increase in the tourist visa fees, tax hikes in the hotel and travel agent industries and the blanket value-added tax hikes, will make Sri Lanka more costly as a tourism destination.
Mahinda Amaraweera has reportedly decided to resign from his post as the Minister of Wildlife and Forest Resources Conservation.
Amaraweera will continue to serve as the Minister of Agriculture.
MIAP
A local government election contestant was murdered in Minuwangoda.
The victim, a 65-year old resident of Yagodamulla, Minuwangoda and a contestant of the Sri Lanka Freedom Party (SLFP), was subject to a mutilated attack and her house was set on fire.
The killers have escaped the scene after committing the crime and the Minuwangoda Police are conducting investigations into the case.
MIAP
Several ministers are set to be sworn in today (19), political sources disclosed.
The move comes in as part of the Cabinet reshuffle which has been dragged in for months due to various circumstances.
MIAP
The Attorney General has informed the Court that he will not appear for former State Intelligence Service (SIS) Chief, Senior Deputy Inspector General (SDIG) of Police Nilantha Jayawardena, who is cited as a respondent to the cases filed demanding compensations for the aggrieved party of the Easter Sunday bomb attacks.
This was when the case was taken up before Colombo District Court yesterday (18).
The prosecution and the defence have filed written speeches before Court in connection with the cases yesterday.
MIAP
Sri Lanka’s services sector returned to growth territory in December 2022 with better availability of fuel while a fall in manufacturing slowed, according to a Purchasing Managers’ Index compiled by the central bank.
Manufacturing PMI recorded an index value of 44.8 in December, indicating a continued setback in manufacturing activities. This setback was driven by subdued performance observed in all the sub-indices, except Suppliers’ Delivery Time.
The decline in New Orders and Production was mainly driven by manufacturing of textile & wearing apparel sector. Subdued foreign demand due to seasonal holidays, and economic slowdown experienced in major export destinations was the main reasons for this decline.
Manufacturers mentioned that, although supply-side impediments such as high input cost and shortage of foreign exchange that affected importation of raw materials are yet to be resolved, demand slowdown due to deteriorated purchasing power of the customers was the key issue that restricted them fromincreazing production.
Furthermore, Employment and Stock of Purchases also declined in line with the decline in New Orders and Production. Meanwhile, Suppliers’ Delivery Time lengthened in December 2022 compared to the previous month on a month-on month basis.
Expectations for manufacturing activities for the next three months indicated an improvement in December 2022 anticipating improvements in economic conditions.
In December 2022, Purchasing Managers Indices indicated an expansion in Services activities and a continued setback in manufacturing activities.
Services PMI returned to the growth territory, recording an index value of 51.6 in December 2022 after declining for two consecutive months. This increase was underpinned by the improvements observed in New Businesses, Business Activities and Expectations for Activity sub-sectors.
However, Employment and Backlogs of Work continued to decline during the month.New Businesses improved at a slower pace in December 2022 compared to November 2022, particularly with the increases observed in other personal activities, accommodation, food and beverages, and insurance sub-sectors.
Business Activities in the services sector continued its upward trend in December 2022. In line with the increase in tourist arrivals during the month, business activities related to other personal activities and accommodation, food and beverages sub-sectors showed significant improvements.
Further, insurance, telecommunication and financial services sub-sectors also showed some increases compared to the previous month. Nevertheless, business activities related to the wholesale and retail trade sub-sector deteriorated further during the month amid the continued cost of living challenges and shortages of certain items.
Employment declined in December at a slower pace due to seasonal recruitments, though resignations, migrations and retirements continued during the month. Meanwhile, Backlogs of Work also decreased at a slower pace during the month.
Expectations for Business Activities for the next three months continued to improve with optimism regarding further improvements in economic conditions and with the peak of the tourist season. However, some respondents were concerned about the impact of tax increases on demand conditions.
Veteran film producer and director Dr. Sumithra Peiris has passed away at the age 88 years this (19) morning.
Wife of late Cinema Giant Dr. Lester James Peiris and cousin to Prime Minister Dinesh Gunawardena, Dr. Sumithra Peiris’ demise was confirmed while undergoing treatment at a private hospital in Colombo.
Peiris is known for producing and/or directing many blockbuster Sri Lankan movies including Ganga Addara, Gehenu Lamai, Yahalu Yeheli, Maya, Sagara Jalaya Madi Henduwa Oba Sandha, Loku Duwa, Duwata Mawaka Misa, Sakman Maluwa and Waishnavi.
MIAP