President Gotabhaya Rajapaksa has appointed three economists as members of the Presidential Advisory Council on Multilateral Affairs and Debt Sustainability.
Accordingly,
Former Governor of the Central Bank of Sri Lanka, Dr. Indrajith Coomaraswamy
Prof. Shantha Devarajan, Former Chief Economist, World Bank
Dr. Sharmini Cooray, Former Deputy Director of the African Department of the IMF
are appointed to that Council.
Hela Apparel Holdings recently successfully concluded its biggest graduation ceremony under the P.A.C.E. (Personal Advancement and Career Enhancement) programme alongside the launch of the Hela ‘Diriliya’ initiative. These initiatives are driven by the organisation to uplift and enhance the livelihoods of Hela employees across the globe.
As a social capital focused company, Hela believes in creating an environment of inclusivity and equality, paving the way for each individual to grow within the organisation. With this ethos driving the organization forward, Hela together with PVH introduced P.A.C.E. to its manufacturing facilities in 2019, the company officials said.
P.A.C.E. is a foundational life skills training programme designed to improve skills such as communication, problem-solving and decision-making, time and stress management, legal literacy, financial literacy, execution excellence, and sanitation and hygiene. Improving these skills will help employees of Hela feel empowered and increase their confidence levels which will benefit their careers for long term positive growth.
Sharing his thoughts at the event, Shameen Peiris, CEO of Hela Intimates said: “It’s wonderful to see so many of our employees being recognised under the P.A.C.E. programme.
With over 19,000 employees across Sri Lanka and Africa, we believe it is our prime responsibility to ensure that each individual who contributes to the growth of the organisation is supported to grow with it.
With steady progress since its inception, we hope to see more than 5,000 employees graduate from the P.A.C.E programme by 2024. I take this opportunity to congratulate all 145 P.A.C.E. graduates and Hela’s Social Capital Team for the tremendous work in implementing the programme.”
‘Diriliya’ is another novel initiative developed by Hela as part of its social capital focused approach to uplift the lives of the people in the communities it operates in.
Hela Diriliya is designed to encourage employees to come forward with their skills, and build a culture that encourages entrepreneurs.
Through this programme employees across Hela will be provided with the knowledge of how to build a business from scratch, develop business models and maintain finances while ensuring product quality.
The initiative will also provide selling propositions both internally and externally and aid members to connect with financial institutions for support.
Hela Diriliya also helps members develop specific vocational skills, further enabling them to excel in skills such as needlework, dressmaking, pottery and many more.
Australian company, Titanium Sands Ltd is continuing its heavy mineral sand exploration project in collaboration with its local partner Kilsythe Investments (Pvt) Ltd although the work had been suspended for a short period due to unavoidable circumstances, company officials said.
The local company has dug around 4000 mineral exploration drill holes with 50 mm outside diameter at the site and small samples of sand are being sent for laboratory testing for analysis, they pointed out.
The exploration is being carried out by Sri Lankan workers on daily pay basis of Rs. 3000 per day under the management of Geological Survey and Mines Bureau Technical Services (GSMBTS), Saliya Galagoda, head of country operations of the Kilsythe Investments (Pvt) Ltd said..
The current exploration is being carried out on 1 to 3 km and not in any areas of habitations; he said adding that environment conservation activists and some residents with vested interest were exerting pressure against the project. A massive investment of Rs. 390 million has been made by the Kilsythe Investments with funding from the Australian company, he disclosed.
At a meeting with Environment Ministry officials this week the company has expressed willingness to invest US$1 billion for future mineral mining operations after the completion of exploration process, he said
He noted that the exploration activities to determine the distribution of heavy minerals on the island consist primarily of hand auger and light machinery drilling, both of which have little or no impact on the environment.
These activities are being carried out in areas of no habitation and no formal agricultural development with the consent of Geological Survey and Mines Bureau and environment ministry while access to private land areas has been with landowner permission, he said.
Kilsythe Exploration Pvt. Ltd, Orion Mineral Pvt Ltd and Sanur Mineral Pvt Ltd have obtained five licenses from the Geological Survey and Mines Bureau to carry out mineral exploration activities as a consortium representing Titanium Sands Ltd at different sites in Talaimannar in December last year.
The project is at an early stage and is progressing under exploration licences that were granted on the basis that the proposed exploration activities should not have a detrimental impact on the environment. It has to drill another 500 holes to complete the preliminary stage, Operations Manager Dilruk Galagoda said.
He added that exploration has involved shallow hand auger drilling and light mechanised drilling, both of which have very low to zero environmental impact..
The Asian Development Bank’s (ADB) annual flagship economic publication has forecast a muted recovery from the coronavirus disease (COVID19) pandemic as Sri Lanka’s economy grapples with macroeconomic challenges arising from high debt, low foreign reserves, and inflationary pressures.
According predictions of economic exprts GDP is seen expanding at a healthy clip in 2022 amid reviving tourism and an improved public health situation. Moreover, considerable stimulus should further support activity.
That being said, the maturation of nearly USD 7 billion worth of debt this year, an unsustainable fuel import bill, and heightened inflationary pressures pose downside risks to the outlook.
Economic experts projected the economy to grow 3.1% in 2022, which is down 0.3 percentage points from last month’s forecast. In 2023, our panel sees the economy growing 4.1%.
GDP Annual Growth Rate in Sri Lanka is expected to be 3.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts.
However the country’s tourism industry foreign remitences will be declined toa considerable level due to the present political insatblity in the country coupled with the government’s failure to mange macro economic fundamentalsas result of patch work economic policies.
ADB said it projected Sri Lanka’s economic growth to dip to 2.4% in 2022 and improve marginally to 2.5% in 2023.
The Asian Development Outlook (ADO) 2022 observed that even as the Omicron variant of COVID-19 subsides, the country is facing several headwinds. Rising food, fuel and commodity prices, higher import prices, supply chain disruptions, shortages stemming from the foreign exchange squeeze, demand side pressures, and exchange rate depreciation will drive inflation higher in 2022.
Inflationary pressures are expected to moderate in 2023 as global prices fall and supply constraints ease.
“A strong vaccination drive helped economic activity recover from the impact of multiple COVID-19 waves, with tourism, one of the worst hit sectors, gaining strength at the turn of the year,” said ADB Regional Economic Advisor for South Asia Rana Hasan.
“At the same time, strong growth is being held back by Sri Lanka’s debt overhang, large external financing requirements, energy shortages, and high inflation. Immediate measures to restore macroeconomic stability and debt sustainability are crucial for recovery to gain traction.”
Underlying macroeconomic weaknesses, the pandemic’s lingering impacts, energy shortages and external shocks pose downside risks to the economic outlook.
In the absence of access to sustained balance of payment financing, foreign exchange reserves will continue to be limited, and external sector vulnerabilities are likely to persist.
The implications of the Russian invasion of Ukraine will be seen through higher oil and food prices as well as reduced tourism and exports earnings.
The Board of Investment today announced that it has received 33 investment proposals worth US$ 1,412 million in the first quarter of this year.
This value includes investments of 22 new projects into diverse sectors in Energy projects including fuel and Renewable sources (Solar & Wind), heavy industry, logistic & IT infrastructure sectors as well as investments into 11 project expansions.
The number of new investment proposals received in the first quarter 2022 has shown an 80% increase over the corresponding period of the year 2021.
In addition, during the first three months of the year, BOI has signed agreements worth of US$ 765 Mn with several leading investors doubling the number of agreements signed for new investments during 1st quarters of 2021.
The BOI has continued to maintain the investor confidence through its strong facilitation process leading to attraction of new investments as well as investment for project expansions despite the impact of the pandemic and resultant economic conditions.
Having identified the importance of much needed foreign exchange inflow to the country in this juncture, work is in progress to establish a special unit styled “Investment Facilitation Centre (IFC)” within the BOI premises to expedite investment approval process in collaboration with line agencies, by way of granting all the necessary approvals both internal & external for project establishment through a central facilitation point.
In the first quarter 2022, BOI has made significant strides towards digitization of the investor service process by introducing paperless import export documentation for Customs approvals and automating payment of export verification charges, thus providing efficient and transparent procedures for the benefit of the investors.
In addition, action has been initiated to provide readily available developed lands for investment projects for identified sectors such as Textile & Pharmaceutical Manufacturing, Agro-base industries, Electrical and Electronic, Steel & Heavy Industry as well as the ICT sector creating opportunities for investors to set up business ventures in Sri Lanka.
Other initiatives undertaken in the first quarter of this year includes the relaunching of the BOI website to ensure the availability of updated information to assist potential investors to better understand the business and investment climate to make informed decisions on investments.
BOI believes that all the initiatives undertaken and other planned activities will better facilitate existing and potential investors to conduct seamless operations and establish new ventures.
The widespread public unrest in Sri Lanka has taken on the dimensions of a political revolution of great import. It is apparent that it is driven by popular anger and a collective will that straddles all ethnicities. For a country once seen as having irreconcilable ethnic divisions, there is hope that the people will recognise the real provenance of their travails — an apathetic political leadership that wields great power without much accountability — as they come together on the streets to demand change and relief. The people seem to be demanding a wholesale regime change, and not tweaks. As the protests escalate, the administration of President Gotabaya Rajapaksa and the government of his elder brother, Prime Minister Mahinda Rajapaksa, seem to have lost public support and the confidence of their political allies. The Opposition has rejected the President’s call for a multi-party Cabinet, key allies such as the Sri Lanka Freedom Party have walked out of the ruling coalition, and the newly appointed Finance Minister did not deem it prudent to take charge. It is an unusual stalemate on the political front, as it is clear that nothing short of the resignation of the Rajapaksa brothers will assuage public anger; but, at the same time, it is unclear if anyone will be willing to take charge amidst a seemingly insurmountable economic crisis. As over 40 legislators have walked out of the ruling alliance, the present regime faces a loss of majority in Parliament. The real question is whether the Opposition will be willing to form an alternative dispensation.
The urgency of the situation is beyond doubt. The country needs an economic recovery plan to approach international lenders and bring about macro-economic stability. And a concerned and accountable regime needs to be in place for this. Economists have suggested that Sri Lanka may need a bridge loan while an external debt restructuring plan is put in place, but much depends on whether there is a credible leadership. Sri Lanka is at a crossroads. Going one way may lead to a debt trap, sovereign default and possible bankruptcy. On the other hand, the present unrest provides an extraordinary opportunity to change its political and administrative paradigm. Bloated government, excessive security expenditure, the profligate ways of those in power, lack of attention to domestic production and centralisation of decision-making have all contributed to the mess. Much of this needs to change. No more should majoritarian mobilisation be allowed to cover up political and economic failures. An inclusive outlook has to be fostered. The people will have to realise that voting on emotional issues related to race and religion only helps the ruling class and seldom benefits them. Only such a momentous change on the political and social level will lead to their economic emancipation.
THE HINDU
Sri Lanka’s first Angel Fund has, to date, channelled investments totalling up to Rs. 150 million to four home-grown start- ups – Niftron, Magicbit, Mintpay and Chakra Suthra – while also helping these companies scale and access new markets both at home and abroad.
“Since August 2020, our team has evaluated over 400 start-ups from across the country. It’s important to note that most of these start-ups come from outside the Colombo District.
And over a period leading up to the end of last year, the prevalence of women-led start-ups has increased from 8 per cent in 2020, to 15 per cent in 2021. Currently, we’re monitoring and doing the final due diligence on 5-10 start-ups. We hope to back a few more before September,” said Chandi Dharmaratne, Chairperson of the Lankan Angel Network (LAN) in a media release issued by LAN.
Established in 2020 by LAN, and supported by ecosystem development partner the Ford Foundation, the Angel Fund aims to catalyse the growth of Sri Lanka’s start-up ecosystem.
The Angel Fund is currently still open, and prioritises evaluating opportunities for investments across the island.
The Angel Fund portfolio comprises Niftron, a blockchain-as-a-service (BaaS) platform, and Magicbit, an easy-to-use STEM education platform. Further, ‘Buy Now, Pay Later’ platform Mintpay was added recently, while circular economy recycling concept Chakra Suthra is in the process of being added to the Fund’s portfolio.
Along with its investment, the Fund has supported Niftron in securing customers in Africa and Japan. Meanwhile, Magicbit has been assisted in forming partnerships in Sri Lanka and Nepal, while also working towards helping Magicbit’s launch in China and the US.
At the same time, the Fund has helped Mintpay expand into other vertices covering dining, travel and entertainment, and Chakra Suthra has been supported in strengthening its expansion strategy.
Evaluating start-ups on a monthly basis, the Angel Fund is dedicated to backing early-stage start-ups across multiple sectors.
It supports them in various ways, from making investments, to even helping start-ups identify sources for future funding. It also provides centralised services such as company secretaries, accounting and auditing for all its start-ups.
This ensures all start-ups meet proper governance standards, which will certainly help their future funding rounds.
Comprising 100 local and global angel investors, many of whom were attracted via LAN’s extensive global partnerships, the Angel Fund is unprecedented in Sri Lanka because 20 percent of its investments come from members based out of Canada, Dubai, Hong Kong, Qatar, UK and the US.
The Bar Association of Sri Lanka (BASL) says it has observed that some of the recent protests have led to violence with protesters targeting private property of certain individuals and causing destruction to property including their homes.
“Such conduct is criminal and can lead to those participating in such protests being charged in courts of law,” the association said, issuing a statement today (05).
The BASL said it unequivocally condemns such criminal acts and called upon authorities to take necessary action according to law, whilst safeguarding the rights of those who protest peacefully.
The BASL said it has consistently stood for the right of people to protest and express their dissent peacefully. Apart from urging the authorities on numerous occasions to respect this right, members of the Association have also appeared in courts of law to represent those who have been unfairly arrested and detained for merely participating in public protests, it said.
The BASL reiterated the position taken up in its statement on the 2nd April 2022 that if a peaceful protest becomes violent, that will only dilute the objective and purpose of a peaceful expression of dissent and strengthen the hands of those who seek to suppress legitimate dissent.
“Those engaged in protests must take utmost care to ensure that such protests remain peaceful and be wary of persons who might seek to cause violence and destruction during such protests.”
The BASL also noted that the protests have been aggravated by the conduct of the authorities including the declaration of the state of emergency, the ban on social media and the failure to come up with an acceptable solution to the demands of the public.
The BASL is of the view that the only viable solution to the ongoing protests will be by listening to the voice of the people and by meeting their aspirations, the statement added
Visiting Minister Koo Yun-cheol stated that the Korean Government has already focused on providing more employment opportunities for Sri Lankans in South Korea.
The Minister further highlighted that Sri Lanka has been listed as one of Korea’s priority countries for Overseas Development Assistance (ODA) allocations.
An increase in the quota for employment provided for Sri Lankans will replenish the much-needed foreign reserves in Sri Lanka and revive the economies of both countries. Also, Korean ODA assistance to development projects in Sri Lanka has been raised by almost 35% this year.
Minister for Government Policy Coordination of the Republic of Korea, Koo Yun-Cheol, who is on an official visit to Sri Lanka, called on the Minister of Foreign Affairs, Prof. G.L. Peiris on Friday (April 01).
The meeting was followed by a luncheon where the two sides discussed the entire gamut of bilateral relations and explored ways to further strengthen the close and friendly ties between Korea and Sri Lanka.
the Korean Government has already extended the enormous support for Sri Lanka thus far through loan assistance under the Economic Development Co-operation Fund (EDCF) and grant assistance via the Korea International Cooperation Agency (KOICA),
The SL Minister of Foreign Affairs stated that the Government is looking forward to further expansion into many areas including pharmaceutical production, Small and Medium Enterprises (SME), waste disposal, energy, technology, vocational training and education.
Minister Peiris also explained the challenges Sri Lanka is currently experiencing with regard to its external budget and both sides agreed to work together to further enhance collaboration in mutually beneficial sectors.
Approximately 22,000 migrant Sri Lankans are employed in Korea under the Employment Permit System (EPS). The Foreign Minister expressed appreciation of the Government of Sri Lanka for providing a pleasant working environment for Sri Lankans and looking after their welfare..
Welcoming the favourable decisions of the Korean Government, Minister of Foreign Affairs Prof. Peiris reiterated the significance of Korea-Sri Lanka relations on the advancement of economic
development of Sri Lanka.
He expressed his satisfaction with the strong bilateral ties between the two countries and explored ways to further promote Korean investment in Sri Lanka.
In particular, he highlighted that industries such as pharmaceuticals, information technology, digitalization, electronics have a lot of potential to attract foreign investors including Korean investors to Sri Lanka.
Minister Koo said that he would do his utmost to encourage South Korean entrepreneurs to invest in Sri Lanka and to introduce the latest technology from South Korea to Sri Lanka.
It has already provided development assistance and other assistance, he saidadding that South Korea is exploring opportunities available for value-added products using Sri Lankan raw materials.
Sri Lanka’s aim to become a global IT-BPM destination and to unlock sector growth by a factor of five by achieving US$ 5 billion in exports by 2022, creating 200,000 direct jobs and launching 1,000 start-ups has been shattered as the island nation is now in quagmire.
Hundreds of thousands of people are staging street protests demanding the president to step down as he was responsible for the current man made economic disaster in the country..
With the Sri Lankan government’s Cabinet resigning, the economic crisis in the island nation worsened Tuesday as there seems to be no one to steer the nation out of the economic crisis made by the President taking arrogant decisions on the ill advice of his stooges, political activists claimed.
Today, there are queues for fuel, LP gas , essential food items etc in various parts of the country.
Among them the longest and the largest were visa queues and passport queues of aspiring youths and professionals who intended to leave the country seeking foreign jobs.
The belief, Sri Lanka is now a failed state not a ‘suitable country to stay’ is a result of the government’s stupit ideology and development programmes tainted with corruption,waste and irregularities which had brought benifts for Rajapaksa clan, civil society activists alleged. .
On the other hand, the island nation is facing a serious foreign exchange crisis and the government is in shambles after failing to earn foreign exchange to finance the cost of imports and to service foreign debt.
Over the past 10 years, Sri Lanka’s IT and Business Process Outsourcing and Management Industry (IT-BPM) has expanded by 300 per cent, with service export earnings reaching USD 1.2 billion.
It accounts for 12 per cent of the total service export earnings of the country. IT-BPM sector provides direct employment opportunities to over 80,000 professionals in the country. Compared to other service export sectors, the IT-BPM sector, which currently focuses on software development,
IT service delivery and customer call centre services, seems to have a huge potential to increase service export earnings in the future.
Financial consulting services and auditing services also show growth potential in the export sector. Therefore, professionals in accounting, forensic accounting, auditing and taxation should be developed as a group with the potential to export services in the future.
Under these circumstances, the key trade chambers representing the IT-BPM industry express their concern on the evolving situation in the country.
They urge the government to respond to the voice of the citizens in a responsible manner and restore stability with pragmatic solutions through consultation.
The chambers calls upon the government and every Sri Lankan to uphold the rule of law and desist from instigations that are aimed at destabilising the country.
This clarion call was made by SLASSCOM, Sri Lanka’s national chamber for the IT-BPM industry, FITIS, Federation of Information Technology Industry Sri Lanka, and the Computer Society of Sri Lanka(CSSL) the national association of ICT Professionals
They said “the peaceful protests are a show of solidarity bringing every Sri Lankan to the street to express their displeasure on the state of affairs and governance.
The constitution of the country provides mechanisms to change the political structure and its representatives which is the hallmark of a functioning democracy.
We urge the government to restore credibility with appointments of representatives who are capable and free from corruption, and work with experts to resolve the financial crisis that has affected all key economic sectors and Sri Lankan homes with shortages of essentials – food, gas, fuel, and electricity.
The lower income, small businesses, farmers, and vulnerable segments of our society have been hit the most with despair and no means of sustenance.
It is imperative that normalcy and political stability are restored as soon as possible to not further damage the country’s image internationally which could seriously hinder economic recovery. Sri Lanka is a country of abundant resources and enormous human potential. It is incumbent on all of us to make a change for the better”
