Sri Lanka has imported 1000 metric tonnes of rice under the Indian credit line last week, announced the Sri Lanka State Trading Corporation.
These stocks will be distributed for concessionary prices via SATHOSA outlets and supermarkets, the Corporation revealed.
Accordingly, 01kg of Samba rice will be sold for Rs. 175, and 01kg of Nadu rice and Sudu Kekulu rice will be sold for Rs. 145.
Sri Lanka is set to receive 300,000 metric tonnes of rice under the Indian credit line.
MIAP
Finance Minister Ali Sabry speaking in Parliament today (04) revealed that Sri Lanka’s foreign liquidity reserve is below US$ 50 million.
The country should have sought the assistance of the International Monetary Fund (IMF) earlier, the Minster confessed, adding that the government tax revenues have dropped to 8.7 per cent at present.
He added that it may take at least six months total for the country to enter a programme with the IMF.
Suggesting that the approved 2022 Budget is no longer realistic, Sabry revealed that the government is hoping to table a new budget in Parliament with increased income taxes introduced.
MIAP
Speaker Mahinda Yapa Abeywardena today (04) has convened a special Party Leaders’ meeting prior to the Parliament sitting, reports said.
Accordingly, the Party Leaders’ meeting will be held at 09.15 am this morning and the vacant post of Deputy Speaker and the no-confidence motions are believed to be discussed there.
Meanwhile, Prime Minister Mahinda Rajapaksa is also set to deliver a special statement in Parliament today.
MIAP
The Ceylon Private Owners Association has decided to dispatch free buses to those attending the anti-government protests. Accordingly, free buses will be provided at a maximum radius of 25 kilometres, said Union President Gemunu Wijeratne.
However, the relief will be provided only to those apolitical and no political party will be provided buses, he added.
MIAP
Certain trade unions are staging strike actions in the political objective of worsening the economic crisis befallen the country, said President Gotabaya Rajapaksa addressing a discussion held with the representatives of several trade unions loyal to the Ruling Party Sri Lanka Podujana Peramuna (SLPP) at the President’s House in Fort yesterday (03).
Accordingly, this should be understood and the institutions should not be allowed to collapse, the President emphasised.
Adding the need to resort to new methods and move away from political divisions to overcome the economic crisis, President Rajapaksa thanked the public servants who performed their duties despite the April 28 strike action.
The President’s Media Unit announced that all trade unions have been requested to understand the current situation and provide the necessary assistance to the people to lead a normal life.
MIAP
The details of the talks held with the International Monetary Fund (IMF) to obtain its support to overcome the prevailing economic crisis in Sri Lanka are due to be tabled in Parliament today (04).
Accordingly, Finance Minister Ali Sabry is preparing to a make a ministerial brief on the matter in the Chambers.
A debate is also due to be held in this regard.
The appointment of a MP for the vacant post of Deputy Speaker is also said to be taken place today, making it possible to learn the power of the government and the opposition.
MIAP
Parliament is set to convene today (04) and the sitting would be very critical with regard to the country’s current political crisis, sources claimed.
This is mainly due to the no-confidence motion against the government handed over to the Speaker by the Samagi Jana Balawegaya (SJB) and Prime Minister Mahinda Rajapaksa’s reportedly confirmed announcement of his resignation due on being made.
Should the Prime Minister announce his resignation the entire Cabinet will automatically be revoked, leaving a non-existent government in the Chambers.
Meanwhile, heavy Police guard has been deployed around the Parliament premises since yesterday’s evening. Accordingly, Parliament is being heavily guarded with permanent road blocks made of iron pipes.
MIAP
COLOMBO, May 2 (Reuters) – China supports crisis-hit Sri Lanka’s decision to work with the International Monetary Fund (IMF) to restructure its debt, Beijing’s ambassador Qi Zhenhong told Sri Lankan Finance Minister Ali Sabry at a meeting on Monday.
Sri Lanka last month unilaterally suspended external debt repayments before approaching the IMF for help. China is one of Sri Lanka’s largest bilateral lenders with about $6.5 billion in loans.
“Ambassador Zhenhong also assured Minister Ali Sabry that as a major shareholder of the IMF, China is willing to play an active role in encouraging the IMF to positively consider Sri Lanka’s position and to reach an agreement as soon as possible,” Sri Lanka’s finance ministry said in a statement.
Cabinet Spokesman Nalaka Godahewa yesterday (03) admitted that a portion of the US$ 01 billion Indian credit received for the importation of essential food items and medicines was allocated for the importation of industrial raw materials including steel.
Accordingly, US$ 260 million was allocated from the US$ 01 billion credit line to import industrial raw materials, the Minister acknowledged.
The Cabinet Spokesman made this observation in response to a query by a reporter at the Cabinet press briefing yesterday.
MIAP
In the wake of floating the rupee workers remittances in March ended their month-on-month declining course with a modest gain
Workers remittances in March amounted to $ 318.4 million bringing the first quarter haul to $ 782.5 million. From a year earlier, the cumulative figure is down by 58%.
In January, workers remittances amounted to $ 259 million and February it was $ 205 million.
The gain in March can be partly linked to the free float of the currency which saw the rupee plunge by over 30% in early March.
During the year up to 22 April, the rupee depreciated against the dollar by 40.1%. Given the cross-currency exchange rate movements, the rupee depreciated against the Japanese yen by 33.1%, the euro by 37.5%, the pound sterling by 37.9% and the Indian rupee by 38.6%.
Licensed Commercial Banks (LCBs) operating in Sri Lanka have recorded a significant increase in foreign remittances to the banks, following the announcement by the Central Bank of Sri Lanka (CBSL) on 7 March to lift the cap of Rs. 203 imposed on the US Dollar.
A senior official of Bank of Ceylon (BOC) revealed that the decision by the CBSL was effective as there had been a significant rise in the number of foreign workers now sending their money through BOC accounts.
“Rather than keeping the exchange rate at the Rs. 203 level, expatriates are happy to send their money through the formal channel for the high rate of Rs. 320 to Rs. 348. Compared to February 2022, we have a significant improvement,” the official added.
However, the official did not wish to disclose the percentage increase or reveal any statistical data due to competitor-related confidentiality.
Further, he highlighted that the only negative factor still hindering the operation to its fullest potential in receiving worker remittances was the operation of the kerb market, which was still offering a higher rate than the LCBs operating in the country.
The official optimistically stated: “With the rate of remittances we are receiving by now, we will be able to recover our lost foreign remittances income in the next few months. Thus, this move by CBSL is very good and we are very happy with the results. Moreover, we are now in the process of intensifying our promotional campaign to attract more remittances.”
Sampath Bank senior manager stated that there had been a significant increase in worker remittances coming into the bank since last week.
“Another official from Hatton National Bank, who wished to remain unidentified, stated that there has been an increase of 200% in foreign remittances received by the bank.
Meanwhile, an official from the CBSL’s Foreign Remittance Facilitation Department speaking on the condition of anonymity stated that it was too early to comment as the local banks were yet to update the CBSL with the finalised statistical report.
The CBSL fixed the exchange rate at Rs. 203 for over six months from early September 2021, before finally giving up its attempt to hold the exchange rate on 7 March 2022.
Making an announcement on 7 March, the CBSL noted: “Greater flexibility in the exchange rate will be allowed to the markets with immediate effect. The Central Bank is also of the view that forex transactions will take place at levels that are not more than Rs. 230 per US Dollar in the long run. .”
