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Showers or thundershowers to continue: Met Dept

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Showers or thundershowers will occur at times in Eastern, Uva and North-central provinces and in Hambantota district, and at several places elsewhere over the island during the afternoon or night, announced the Department of Meteorology in a statement today (23).

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers will occur at times in the sea areas off the coast extending from Hambanthota to Kankasanthurai via Batticaloa, Trincomalee and Mullaitivu.
Winds:
Winds will be north-easterly and wind speed will be (25-35) kmph. Wind speed may increase up to (40-45) kmph at times over the sea areas off the cost extending from Colombo to Galle via Puttalam, Kankasanthurai, Trincomalee, Batticaloa and Hambantota.
State of Sea:
Sea areas off the coast extending from Colombo to Galle via Puttalam, Kankasanthurai, Trincomalee, Batticaloa and Hambantota, will be fairly rough at times. The other sea areas around the island may be slight to moderate.  Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

MIAP

Foreign Minister to visit Saudi Arabia

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Foreign Affairs Minister Ali Sabry is set to make an official visit to the Kingdom of Saudi Arabia from January 23 to 27 on an invitation of his Saudi Arabian counterpart Prince Faisal bin Farhan Al Saud.

Sabry will be meeting the Saudi Arabian Foreign Minister and discussing further enhancement of the cordial bilateral relations between the two nations.

In Addition, the Minister will also meet with the senior officials of the Islamic Development Bank, the Organization of Islamic Cooperation, the Gulf Cooperation Council and the Governors of Mecca and Medina.

MIAP

Humanitarian Assistance & Disaster Relief exercise of CARAT – 2023 gets underway

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The Marine Exercise (MAREX) of Cooperation Afloat Readiness and Training (CARAT) 2023, commenced in Mullikulam on 21st January 2023 and it was augmented by personnel from the U.S. Marine Corps, Sri Lanka Navy Marines, Special Boat Squadron, Rapid Action Boat Squadron, and Naval Infantrymen. Accordingly, the Humanitarian Assistance & Disaster Relief (HADR) exercises of MAREX were held at the beach area of Mullikulam in the Northwestern Naval Command today (22nd January).

The exercise saw two (02) Landing Craft Air Cushion (LCAC) of the U.S. Navy transferring troops, Logistics and vehicles ashore for HADR drills. The training exercise also helped both partners to coordinate and communicate with one another in a simulated environment and improve each other’s skills.

Commander Northeastern Naval Area, Rear Admiral Nishantha Peiris and a group of senior officers from the command were present on this occasion to inspect the proceedings.

GCE Advanced Level Examination commences

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The GCE Advanced Level Examination of 2022 commences from today (23) at 08 am, at 2,200 centres across the island.

331,709 candidates, both school and private applicants, will be sitting for the exams.

The Department of Examinations has approved 1o minutes of additional time for the essay papers of the exams.

MIAP

Sri Lanka Original Narrative Summary: 23/01

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  1. CoPF Chief MP (Dr.) Harsha De Silva praises the CPCEC for the immediate implementation of recommendations on adopting online methods and submitting audited accounts – Commission asserts these are established under a completely legitimate purview of the government in compliance with the Colombo Port City Economic Commission Act.
  2. French court convicts 14 Sri Lankans of migrant smuggling across Europe – Main suspect accused of overseeing the operation from a grocery store in Serifontaine handed a four-year prison term, with one year suspended – Another based in Britain but fighting extradition requests given a five-year sentence, while others given lesser sentences.
  3. Operations at Kelanitissa Combined Cycle Power Plant stalled incurring a drop of 165 megawatts from the national grid, hours after the operations at the Norochcholai Coal Power Plant stalled due to maintenance restored – absence of sufficient stocks of naphtha owned by CEB said to be the reason.
  4. President Ranil Wickremesinghe says the contribution of the University Community is very important in the development process – instructs to implement a youth-led development project covering the entire island to make Sri Lanka a developed nation by the 100th Independence Celebration in 2048 through youth ideas, skills and interventions.
  5. GCE Advanced Level Examination commences from today at 8 am – Exams held at 2,200 centres across the island with 331,709 applicants, both school and private applicants, sitting – Dept of Examinations approves additional 10 minutes for essay papers.
  6. The maximum distance which school field trips can be taken up to restricted to 100 km per day – Students taken on field trips must be returned before 6 pm – Move comes in following the fatal accident in Nanuoya where a bus carrying students of Thurstan College, Colombo collided with a van and a three-wheeler killing seven people – Bus driver accused of negligent driving remanded.
  7. Thushara Sanjeewa, a close associate and a disciple of ex Minister Johnston Fernando, ousted from his position as the Mayor in Kurunegala through gazette issued by the North-Western Provincial Governor due to failure of passing the Budget of Kurunegala Urban Council.
  8. UAE Human Resources Minister Dr. Abdulrahman Abdulmannan Al Awar assures Sri Lanka’s Minister of Foreign Employment Manusha Nanayakkara his country will take stern action against those facilitating illegal immigration to UAE – Dr. Al Awar positively responds to Nanayakkara’s request to provide more job opportunities in UAE for skilled workers from Sri Lanka.
  9. Hindustan Times reports China’s position on Sri Lanka to be informed to the IMF in writing on Jan 22, 2023 – Treasury Deputy Secretary Priyantha Ratnayake says the negotiations with China regarding debt restructuring have reached its final stage and an agreement will be made in the next few days; denies revealing details citing ‘confidentiality’ – China and India being the two main creditors to Sri Lanka are the variable to receiving IMF bailout.
  10. Foreign Affairs Minister Ali Sabry scheduled to make an official visit to Saudi Arabia from 22 – 27 January, 2023 on an invitation by his Saudi Arabian counterpart Prince Faisal bin Farhan Al Saud – Further enhancement of bilateral relations between the two nations expected during the visit.

Bus driver of Nanuoya accident remanded

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The driver of the bus which collided with a van and a three wheeler in a fatal accident killing seven two days ago has been remanded till February 02, as ordered by the Nuwara Eliya Magistrate Court.

Nuwara Eliya Magistrate Nalaka Sanjeewa Edirisinghe visited the District Hospital of Nuwara Eliya where the bus driver is being treated and produced the order thereafter.

MIAP

Fitch downgrades five Lankan finance and leasing companies

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Fitch Ratings has downgraded the National Long-Term Ratings of five Sri Lankan finance and leasing companies (FLCs) after the recent sovereign downgrade and recalibration of the agency’s Sri Lankan National Rating scale.

The FLCs’ ratings remain on Rating Watch Negative (RWN). The downgrades follow similar action on 10 Sri Lankan banks. For details, see “Fitch Downgrades 10 Sri Lankan Banks’ Ratings”, dated 12 January.

The recalibration of the national scale is to reflect changes in the relative creditworthiness among Sri Lankan issuers following Fitch’s downgrade of Sri Lanka’s Long-Term Local Currency Issuer Default Rating (IDR) to ‘CC’ from ‘CCC’/Under Criteria Observation on 1 December 2022. Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of ‘CCC+’ or below.

National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’.

Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale. National scales are not comparable with Fitch’s international rating scales or with other countries’ national rating scales.

The recalibration of the Sri Lankan National Rating scale has resulted in downgrades of the National Long-Term Ratings of the following Fitch rated FLCs:

These companies are People’s Leasing and Finance PLC (PLC) , Central Finance Company PLC CBC Finance LTD , HNB Finance PLC and Siyapatha Finance PLC (Siyapatha)

The National Ratings of other Sri Lankan FLCs, which are not mentioned in this commentary, have not been affected by the recalibration. Still, their credit profiles generally remain exposed to heightened downside risks in the current operating environment.

The downgrades of the National Ratings of PLC and CF are driven by the downgrade of the sovereign’s Long-Term Local-Currency IDR and the recalibration of the Sri Lankan National Rating scale. They also reflect their relative creditworthiness among Sri Lankan issuers, including the larger banks.

A probable default on the sovereign’s local-currency obligations increases the risk that authorities will impose restrictions on FLCs servicing their local-currency obligations, like for the banks. That said, we believe that this risk is lower than non-payment by the sovereign.

The downgrades of CBCF, HNBF and Siyapatha stem from the downgrades of their bank parents ─ Commercial Bank of Ceylon PLC (A(lka)/RWN), Hatton National Bank PLC (A(lka)/RWN) and Sampath Bank PLC (A(lka)/RWN), respectively ─ due to the recalibration of the bank parents’ National Ratings.

These FLCs remain rated two notches below their respective parents’ ratings, reflecting the finance subsidiaries’ limited importance to their bank parents.

Boycott of the GCE (A/L) Examination, 2023 Evaluation

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The Federation of University Teachers’ Associations (FUTA, has long remained the conscience of this nation in relation to the education and higher education sectors, while taking a broad leadership role in fearlessly campaigning for equity and social justice throughout. Hence, it is with fear and frustration that we note the even greater depths this country is being plunged into by the waste and mismanagement that is only succeeding in exacerbating the current economic and political crisis.

To be specific, in a context where government spending on education will reach an all-time low in relation to GDP in 2023, making Sri Lanka the worst-affected country in South Asia by a wide margin, the proposed arbitrary and unfair income tax increases have caused apprehension and disgust among all those engaged in the education sector. For FUTA, an organisation that has been agitating for over a decade to increase government funding of education, health and other basic rights, this portends catastrophic consequences for all citizens alike.

While the other battles need to be fought in the medium and longer term, the major current aspect of the crisis is the ill-thought and unconscionable new Income Tax Act which imposes drastic changes to personal income tax through a mandatory Advance Personal Income Tax (APIT) payment, over and above huge increases levied on the public in the form of indirect taxes. Our concern here goes beyond the gross injustice to university academic staff and covers the broader negative repercussions to all sectors of society as well as the economy in general. Hence, this government has compelled us to consider trade union action of a kind we would never have decided upon in normal circumstances, but for the need to prevent this grossly unfair and arbitrary taxes on income and expenditure, again, as in the case of the education budget, without precedent in the region.

Therefore, it is with deep regret that the Federation of University Teachers’ Associations has instructed its members to withdraw their participation in the GCE (A/L) 2023 Evaluation Process.  While we are aware that this choice may raise serious concerns in the public, we are confident that the Government will be forced to see the light as a result of our awareness-raising and public agitation on the iniquitous and catastrophic tax law, revoking its worst provisions and revising on the basis of enlightened principles, so that we may take part in the examination and evaluation process without interruption. Moreover, even if the evaluation process were to be delayed, we are aware that no new students will be admitted to the state university system at present due to an acute lack of funding. Consequently, at this crucial juncture it is crucial that we keep up the fight for fair living standards for the populace and sufficient funding for our educational system. 

Our decision to boycott the GCE (AL) evaluation was not made lightly, but it shows how far we are willing to go to defend our rights and ensure that the country is on the right path to recovery. In doing so, we are not only safeguarding our economic rights and livelihoods, but also protecting the future of our students, who stand to be adversely affected by a sudden change in the evaluation process.

Please be informed that university academics will not participate in the GCE (A/L) Examination evaluation process this year, which was a difficult decision that was overwhelmingly supported by all academic members of the state university system, as there was no alternative to convey a clear and unequivocal message to the Government to stop its destruction of this country through this proposed pernicious taxation. We were forced to make this decision because the regime is unwilling to negotiate with us or address our demands; this means that the Government should bear full responsibility for any repercussions that may arise, as a legitimate trade union response to an illegitimate government’s refusal to listen to carefully reasoned clearly-expressed academics’ objections to these unreasonable and discriminatory tax hikes, which actually amount to salary reductions of university academic staff.

FUTA

Colombo Port City new casino laws meet COPF hurdle

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Colombo Port City Economic Commission’s latest move of enacting new legislation that would allow the country’s under-construction Colombo Port City development to feature at least one large casino resort came under stern objection of the public finance committee.

A casino resort for such an area would purportedly be looking to attract domestic patrons as well as those from the nearby nation of India and could one day even see gamblers turning up from as far afield as Europe and North America official sources said.

The Committee on Public Finance (COPF) has moved towards preventing Colombo Port City to prepare new legislation pertaining to the casinos within the offshore city free trade zone which is being set up on reclaimed land from the sea.

Public Service Commission Chairman Dr. Harsha de Silva told Parliament that the committee had informed the authorities of Port City that it has to abide by the existing laws pertaining to casinos.

“However the Port City will be welcomed to propose amendments to the existing laws.” he added

A special economic zone to be set up in the Colombo Port City reclaimed from the sea has a provision covering gaming according to a port city act passed in parliament in 2021.

A Colombo Port City Economic Commission, with a board appointed by the President of Sri Lanka and a Director General will administer the area.

The Special Zone is expected to bring a variety of investments including offshore banking to boost economic activity and also bring investments.

The Economic Commission has to license all businesses within the Port City and approve permits to “operate businesses, shopping, entertainment including gaming activities and such other facilities, to obtain possession of commercial residential facilities, in and from the Area of Authority of the Colombo Port City.

The commission will also “regulate gaming activities within the Area of Authority of the Colombo Port City and where required to make regulations for the management of such activities.

The commission will also identifying “the attributes of gaming locations within the Area of Authority of the Colombo Port City, and specifying the manner in which gaming activities are to be carried on or be operated, and the procedure for obtaining a licence and the licence fees , royalties to be paid and any other related matter, as may be necessary.”

The Economic Commission will have authority to grant exemptions or incentives under The Betting and Gaming Levy Act No 40 of 1988 and Casino Business (Regulation) Act Nov 17 of 2010.Any regulations issued by the Commission will have to be ratified in parliament.

There are several casinos operating in Colombo under de facto authority. However monks and other activists opposed the setting up of two new casinos linked to foreign operators a few years ago.

UAE to crack down on illegal human smugglers amid the surge in SL job seekers

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The United Arab Emirates (UAE) has decided to take stern action against illegal human smuggling racketeers as more and more Sri Lankans visiting that country for employment.

The UAE’s direct investments in Sri Lanka exceeded US $19 million in 2020 and 2021, and bilateral trade amounted to $2.7 billion during the same period.

Labour and Foreign Employment Minister Manusha Nanayakkara said that the UAE will take stern action against those who facilitate illegal immigration into their country.

During the meeting the UAE Human Resources Minister Dr. Abdulrahman Abdulmannan Al Awar assured Minister Manusha Nanayakkara that his country will take stern action against those who bring foreign workers into the country through illegal methods.

There are more than 380,000 migrant workers working in the UAE with more than 35,000 Sri Lankan migrants left to the UAE in 2022, some of them were reportedly found to be seeking jobs while on a visit visa and a few were forced into other illegal trades.

Minister Nanayakkara had explained to the UAE minister about difficulties faced by Sri Lankans who come in search of jobs to UAE on visit visas as a result of various scams by individuals and organized groups.

He also explained that efforts are taken to make the public aware of the perils of seeking foreign employment opportunities through a visit visa.

The UAE minister responded positively to the request made by Nanayakkara to provide more job opportunities in the UAE for skilled workers from Sri Lanka.

The joint technical committee that was set up in 2021 between the two countries will continue to discuss technical details on how to prevent human trafficking through visit visas to the UAE.

He said a program will be implemented by mapping the qualification framework of the two countries that will recognize the qualifications of Sri Lankan migrant workers.

Minister Nanayakkara explained that 35,572 Sri Lankan workers obtained employment opportunities through the Sri Lanka Bureau of Foreign Employment last year which accounts for 11.4 percent of the total departures in Sri Lanka. This is a 27 percent increase in 2022 compared to 2021

Sri Lanka is facing its worst economic crisis in its history. Food inflation and unemployment rates have soared, forex reserves have dried up and its currency has plunged against the dollar.

The country is running out of money and is eyeing an immediate IMF bailout. Against all odds, the tiny island nation is striving hard to revive its debt-laden economy.

The bankrupt government is looking at two elements that have always ensured steady capital inflow: tourism and foreign remittance.

Last year, a record 311,188 Sri Lankans left the nation seeking jobs abroad and a good 85 per cent flew into the Middle East.

Remittances – a major source of foreign exchange, soared with migrant workers sending more than $475 million in December 2022, which was much higher than the same period of 2021 but lower than pre-Covid-19 time.

Nanayakkara is seeking more jobs for professionals in the areas of finance, healthcare, energy and information technology.

The labour ministry has embarked on a nation-wide labour market intelligence programme through a labour market information system.

He said this would give us more insights into labour supply and demand with the characteristics required for job markets. We will then communicate this with our education officials to ensure what is being produced can meet the expectations of both local and international jobs markets.”

In the past years, the economic woes were further hit with a drop in remittances, which was linked to transactions made through illegal channels, he claimed.