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
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 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.
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 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.
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 $475 million in December 2022, which was much higher than the same period of 2021 but lower than pre-Covid-19 time.
Nanayakkara is seeking more jobs for professionals in the areas of finance, healthcare, energy and information technology.
The labour ministry has embarked on a nation-wide labour market intelligence programme through a labour market information system.
He said this would give us more insights into labour supply and demand with the characteristics required for job markets. We will then communicate this with our education officials to ensure what is being produced can meet the expectations of both local and international jobs markets.”
In the past years, the economic woes were further hit with a drop in remittances, which was linked to transactions made through illegal channels, he claimed.
The Government’s corporate tax hike is to knock out thrice battered Sri Lanka tea industry by Covid-19, fertilizer ban and economic crisis is set to recover this year with a production target of 300 million kilograms and earn US$ 1.3 million from tea exports this year, industry sources said.
Sri Lanka expects tea production to recover in 2023 to 300 million kilograms after output fell to 260 million kilograms in 2022 with former President Gotabaya Rajapaksa’s utterly foolish overnight decision of banning fertilizer and agro-chemicals.
But this ambitious target towards the recovery of the industry will definitely suffer another set back for the fourth time in two years owing to the government’s action of doubling the corporate income tax rate impacting net foreign exchange earning of tea industry mainly in three ways
According to tea industry experts the increase in corporate income tax could affect the overall efficiency in the tea industry and the burden may sooner or later be felt through the entire supply chain including the tea smallholder growers.
Some tea export companies may even move to other countries like the Jebel Ali Free Zone in Dubai due to high taxes, purely to protect their market shares which have been gained through several years of hard work.
Hence the Tea Exporters Association ( TEA ) earnestly request the government to maintain the concessionary corporate income tax rate of 14 % for the tea export sector for its long term sustainability, which will ultimately bring in much higher growth dividends for the economy
Sri Lanka’s tea exports have dropped to a 25-years low in 2022 hit by a fertilizer shortage due to an ill-advised agrochemical ban, an industry report said.
Sri Lanka exported 250.19 million kgs of tea in 2022, 13 percent down compared to 2021 and it is the lowest since 1997. All categories of tea have recorded a drop except the instant tea.
“In a very challenging year of poor supply, turbulent domestic working environment, compounded by multiple international challenges, Sri Lanka exported 250.19 million kg 148 countries,” tea broker firm Asia Siyaka said in a report.
“Despite reasonable weather conditions throughout 2022, Sri Lanka tea production declined sharply and is likely to end the year at around 252 million kgs compared with 299 million kgs in 2021.”
The exports generated $1.27 billion in earnings, a decrease of 4.5 percent compared to 2021, the data showed.
In rupee terms, Sri Lanka has earned Rs 411.09 billion, an increase of 56 percent in comparison to Rs 263.35 billion in 2021, mainly due to sharp depreciation of the rupee currency.
Iraq, Russia and UAE have remained the top markets for Ceylon tea. The Tea Export sector annually bringing revenue of about $1.3 billion is concerned about the proposed corporate income tax of 30% by the government on the export sector as it could seriously hinder the industry’s efforts for revival.
The operations at the Kelanitissa Combined Cycle Power Plant have been stalled since this (22) morning incurring a drop of 165 megawatts from the national grid, hours after the operations at the Norochcholai Coal Power Plant, which had been stalled due to maintenance, were restored.
The power plant has stalled its operations due to the absence of sufficient stocks of naphtha owned by the Ceylon Electricity Board (CEB).
Meanwhile, the Norochcholai Power Plant is said to be fully operational.
MIAP
A court in northern France has sentenced 14 Sri Lankan nationals to prison for operating a migrant smuggling ring across Europe, as authorities across the continent try to crack down on the lucrative criminal networks.
The main suspect, accused of overseeing the operation from a grocery store in the village of Serifontaine, was handed a four-year prison term, with one year suspended.
Investigators determined that he set the prices and routes for moving migrants from Sri Lanka and Bangladesh across the continent from Ukraine, with the help of bribes to officials in Eastern Europe.
Another suspect, who is based in Britain but fighting extradition requests, was given a five-year sentence by the court in Beauvais, while the others were given lesser prison terms.
Smuggling gangs have flourished as increasing numbers of migrants have headed for Europe in recent years, with many hoping to cross the English Channel to Britain.
More than 45,000 migrants crossed the Channel from mainland Europe in 2022, surpassing the previous year’s record by more than 17,000, according to British government figures.