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. .”

Airtel Lanka announced that it will be upgrading its network with additional LTE bandwidth and capabilities by shutting down 3G data services. This will allow Airtel Lanka’s 4G/5G services to be enhanced and improved, offering users a faster and consistent network experience.

The move is said to result in up to 50% increase in data speeds and will also drastically reduce network traffic congestion.

The shutting down of 3G data services will take effect from 24 June 2022. The telecom operator reiterated that its 2G network will continue to operate, allowing all its users, including the 2G and 3G handset customers to have uninterrupted access to voice and text message services.

Furthermore, Airtel confirms that a significant number of users have already migrated to 4G and are currently enjoying its benefits.

To facilitate the remaining 3G only data users to upgrade to 4G, Airtel has partnered with leading retailers to offer a range of affordable options for 4G-enabled devices across all price points. Additionally, all users who upgrade from a 3G only device to a 4G device will receive free 60 GB anytime 4G data.

Airtel’s world-class 4G network around the island is also 5G ready and promises users a superior experience including 99% buffer-free streaming, noticeably quicker loading times and improved indoor coverage with 4G signals that never fail.

Airtel offers 4G users a range of Freedom packs, each designed with affordability, reliability, and quality in mind.

The offer enables eligible users – those who used to have an Airtel connection – with a first-hand experience of Airtel’s value-driven 4G network and Freedom Packs. They can simply put their old Airtel Sim in a handset, dial ‘123’ and avail themselves to attractive discounted offers, including up to seven days of free calls and 4G data.

Airtel Lanka pledges to the guaranteed performance of its refined 4G network and Freedom Packs, enabling up to 4X faster internet speed, 50 percent better indoor coverage and a colossal savings of up to 80% in value, when compared to conventional reloads. Airtel’s 4G network is built on a triple layer network, which gives it a solid combination of coverage and capacity to deliver a superior experience with drastically improved coverage with stronger signal penetration.

Over the last year, Airtel Lanka accelerated its efforts towards refining and strengthening its 4G network covering the entire country, to meet and exceed customer expectations for a greatly consistent and easily accessible mobile internet experience.

Now, Airtel’s 4G network and value-centric Freedom Packs have continuously performed well to win the trust and support of users from all walks of life. The company believes that every Sri Lankan deserves affordable access to the best network, and Airtel Lanka commits not to disappoint its ever-growing user base

Mysterious breakdown of Norochcholai power plant on Tuesday 03 at a time where the Ceylon Electricity Board has occurred at a time where  the energy ministry  has cleared a coal shipment anchored at the Colombo Port for several days.

It  will trigger extended power cuts despite the new Energy Minister’s assurance of no such electricity interruptions .

Minister Kanchana Wijesekera told a media conference that, no further extensions will be made to the rolling power interruptions owing to the situation,although  the Ceylon Electricity Board (CEB) has informed of a technical breakdown in one of the power plants at Norochcholai, Minister of Energy Kanchana Wijesekera.

The national grid loses a total of 270 MW as a result of the breakdown.ter Wijesekera stated that repairs are under way at present. He assured that the power plant in question will be reconnected to the national grid within a period of five days.

However the people are bemused as there being misinformed about the actual situation by the Energy Minister and CEB officials. 

Minister Wijesekera said the CEB informed him of a technical breakdown in one of the 270MW power plants in Norochcholai.

The Minister said that the CEB has commenced repair work and assured that they will reconnect it within 5 days.He also said that despite the breakdown the CEB will manage the ongoing power cuts without further extensions by using thermal and hydro power plants.

The Norochcholai coal power plant has faced multiple breakdowns since it was commissioned with Chinese assistance in 2011.Sufficient stocks of Coal to run the Norochcholai Power Plant have been imported to the country as of now, the Ceylon Electricity Board (CEB) said. 

According to CEB Spokesperson Andrew Nawamani, two million metric tonnes of Coal were imported to the country from South Africa and Russia.The Coal reserves are sufficient to run the Norochcholai Power Plant until September this year, the CEB noted.

It was unclear as to whether the government has cleared the stocks from two coal ships which were  anchored off the coast of Sri Lanka from April 08 awaiting payment and were  to sail away on April 18 

The shippers have to be paid 80 percent of the value when the shipment arrives, documents are submitted.Sri Lanka’s CEB has been running three 300MW coal plants at the Lakvijaya complex in Puttalam providing the base load for at least several hours of electricity at a lower cost.

If the coal ships left ,the CEB may have to shut down one of the coal plants from May 2022, sources said, worsening a power and economic crisis.

This matter should be clearly clarified by the CEB without stating that they have sufficient stocks, energy experts said.   

In a desperate gesture at a time where the public protests are mounting against the Government, the present administration is set to provide Rs. 13.36 billion special three-month cash allowance to 3.34 million families affected by the current economic crisis.

The support scheme, funded by the World Bank, will provide an increase for the allowances for low-income families identified under Samurdhi, Elderly, Kidney and Disabilities from May to July 2022.

Elders , disabled and samurdhi beneficiaries will get an increase of Rs 200O to Rs 3000 for their monthly allowances under the World bank aided relief programme , Minister Shehan Semasinghe disclosed.

The go-ahead of the Cabinet of Ministers has been given to provide a special cash allowance for a period of three months to identified low-income families affected by the ongoing economic crisis.Relevant proposal was tabled by the Minister of Finance and Minister of Samurdhi.

As the low-income families entitled to Samurdhi, Elderly, Kidney and Disability allowances have been severely affected by the current economic crisis in the country, the government has identified the need for immediate relief to those families and their families on the waiting list.

Contingent Emergency Response Components in projects funded by the World Bank Group will provide the necessary funding for this, the Department of Government Information said in a statement.

The government has identified the need for immediate relief to these affected families and those others on the waiting list,” Semasinghe said in a statement.

As per the statement, amounts ranging between Rs 3,000 to Rs 7,500 under various categories like elders’ allowances, kidney patients allowances and disability allowances will be disbursed to low income families.

The world bank is facilitating financial and technical assistance to Sri Lanka the cash transfer will be done only through bank accounts. Any eligible person who doesn’t have an account will be informed to open one immediately by government officials concerned, the minister said in a tweet.

Central Bank Governor Nandalal Weerasinghe said that the World Bank has agreed to provide Sri Lanka with US$ 600 million in financial assistance to help meet payment requirements for essential imports.

The Government will use over US$ 300 million out of the US$ 600 million due from the World Bank to provide direct financial assistance for low-income families, Weerasinghe added.

Meanwhile, Prime Minister Mahinda Rajapaksa’s office has announced that China will grant 300 million Yuan to Sri Lanka to purchase medicine, food, fuel and other essentials.

The move comes after Rajapaksa’s telephonic conversation with Chinese premier Li Keqiang earlier last month.

Debt-ridden Sri Lanka’s overall inflation surged to nearly 30 per cent in April from 18.7 per cent recorded in March, according to the official figures, as the island nation grapples with its worst economic crisis in decades.

The crisis is caused in part by a lack of foreign currency, which has meant that the country cannot afford to pay for imports of staple foods and fuel, leading to acute shortages and very high prices.

Months of lengthy blackouts and acute shortages of food, fuel and pharmaceuticals have triggered widespread protests calling for the government’s resignation.

According to the data published by the government’s Census and Statistics Office, the overall inflation hit 29.8 per cent in April from 18.7 per cent recorded in March.

The food inflation increased from 30.21 per cent in March to 46.6 per cent in April. Most food items have recorded price increases.

Sri Lanka needs at least US$ 4 billion to tide over its mounting economic woes, and talks with international institutions such as the World Bank as well as countries like China and Japan for financial assistance have been going on.

India has agreed to extend an additional US$ 500 million credit line to help Sri Lanka import fuel.India has already agreed to defer US$ 1.5 billion in import payments that Sri Lanka needs to make to the Asian Clearing Union.